HomeMy WebLinkAboutCity Council Ordinance 2014-01CITY OF PLYMOUTH
HENNEPIN COUNTY, MINNESOTA
ORDINANCE NO. 2014-01
AN ORDINANCE IMPLEMENTING AN ELECTRIC SERVICE FRANCHISE FEE ON
NORTHERN STATES POWER COMPANY, A MINNESOTA CORPORATION, D/B/A XCEL
ENERGY, ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING ELECTRIC SERVICE WITHIN
THE CITY OF PLYMOUTH, MINNESOTA
THE CITY COUNCIL OF THE CITY OF PLYMOUTH DOES ORDAIN:
SECTION 1. The City of Plymouth Municipal Code is hereby amended to include reference to
the following Special Ordinance.
Subdivision 1. Purpose. The Plymouth City Council has determined that it is in the
best interest of the City to impose a franchise fee on those public utility companies that provide
electric services within the City of Plymouth. Pursuant to City Ordinance 2007-17, (adopted
July 10, 2007), a Franchise Agreement between the City of Plymouth and Northern States Power
Company, a Minnesota corporation, d/b/a Xcel Energy, its successors and assigns, the City has
the right to impose a franchise fee on Northern States Power Company, a Minnesota corporation,
d/b/a Xcel Energy, its successors and assigns, in an amount and fee design as set forth in the fee
schedule attached hereto as Schedule A.
Subdivision 2. Terms. A franchise fee is hereby imposed on Northern States Power
Company, a Minnesota Corporation, d/b/a Xcel Energy, its successors and assigns, under its
electric franchise in accordance with the schedule attached here to and made a part of this
Ordinance, commencing with the Xcel Energy May 1, 2014 billing month.
The fee shall be in addition to any permit or other fees being imposed on Company under
Section 800 of the City Code. This fee is an account -based fee on each premise and not a meter -
based fee. In the event that an entity covered by this ordinance has more than one meter at a
single premise, but only one account, only one fee shall be assessed to that account. If a premise
has two or more meters being billed at different rates, the Company may have an account for
each rate classification, which will result in more than one franchise fee assessment for electric
service to that premise. If the Company combines the rate classifications into a single account,
the franchise fee assessed to the account will be the largest franchise fee applicable to a single
rate classification for energy delivered to that premise. In the event any entities covered by this
ordinance have more than one premise, each premise (address) shall be subject to the appropriate
fee. In the event a question arises as to the proper fee amount for any premise, the Company's
manner of billing for energy used at all similar premises in the city will control.
Subdivision 3. Payment. The franchise fee shall be payable quarterly and shall be based
on the amount collected by Company during complete billing months during the period for which
payment is to be made by imposing a surcharge equal to the designated franchise fee for the
applicable customer classification in all customer billings for electric service in each class. The
payment shall be due the last business day of the month following the period for which the payment
is made. The franchise fee may be changed by ordinance from time to time; however, each change
shall meet the same notice requirements and not occur more often than annually and no change shall
require a collection from any customer for electric service in excess of the amounts specifically
permitted by the attached fee schedule. The time and manner of collecting the franchise fee may be
subject to the approval of the Commission. No franchise fee shall be payable by Company if
Company is legally unable to first collect an amount equal to the franchise fee from its customers in
each applicable class of customers by imposing a surcharge in Company's applicable rates for
electric service. Company may pay the City the fee based upon the surcharge billed subject to
subsequent reductions to account for uncollectibles, refunds and correction of erroneous billings.
Company agrees to make its records available for inspection by the City at reasonable times
provided that the City and its designated representative agree in writing not to disclose any
information which would indicate the amount paid by any identifiable customer or customers or any
other information regarding identified customers. In addition, the Company agrees to provide at the
time of each payment a statement summarizing how the franchise fee payment was determined,
including information showing any adjustments to the total surcharge billed in the period for which
the payment is being made to account for any uncollectibles, refunds or error corrections.
Subdivision 4. Surchartle. The City recognizes that the Minnesota Public Utilities
Commission may allow the Company to add a surcharge to customer rates for the cost of the fee.
Subdivision 5. Equivalent Fee Requirement. This ordinance shall not be effective
against Company unless it lawfully imposes and the City monthly or more often collects a fee or tax
of the same or greater equivalent amount on the receipts from sales of energy within the City by any
other energy supplier, provided that, as to such a supplier, the City has the authority to require a
franchise fee or to impose a tax. The "same or greater equivalent amount" shall be measured, if
practicable, by comparing amounts collected as a franchise fee from each similar customer, or by
comparing, as to similar customers the percentage of the annual bill represented by the amount
collected for franchise fee purposes. The franchise fee or tax shall be applicable to energy sales for
any energy use related to heating, cooling or lighting, or to run machinery and appliances, but shall
not apply to energy sales for the purpose of providing fiiel for vehicles. If the Company specifically
consents in writing to a franchise or separate ordinance collecting or failing to collect a fee from
another energy supplier in contravention of this section, the foregoing conditions will be waived to
the extent of such written consent.
Subdivision 6. Enforcement. Any dispute, including enforcement of a default
regarding
this ordinance will be resolved in accordance with Section 2.5 of the Franchise Agreement.
Subdivision 7. Effective Date of Franchise Fee. The effective date of this Ordinance
shall be after its publication and ninety (90) days after the sending of written notice enclosing a
copy of this adopted Ordinance to Xcel Energy by certified mail. Collection of the fee shall
commence as provided above.
ADOPTED by the City Council of the City of Plymouth, Minnesota this 14th day of January,
2014.
CITY OF PLYMOUTH
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Kelli Slavik, Mayor
AT EST:
'Sandra Engdahl, Cit Jerk
SCHEDULE A
Franchise Fee Rates:
Electric Utility
The franchise fee shall be in an amount determined by applying the following schedule per
customer premise/per month based on metered service to retail customers within the City:
Class
Residential
Sm C & I — Non -Dem
Sm C & I — Demand
Large C & I
Amount ner month
$2.00
$3.00
$10.00
$40.00
Franchise fees are to be collected by the Utility at the rate listed below, and submitted to the City
on a quarterly basis as follows:
January — March collections due by April 30.
April — June collections due by July 31.
July — September collections due by October 31.
October — December collections due by January 31.