Title
Amending the Legislative Code by adding a new Appendix C-2 relating to Northern States Power, D/B/A Xcel Energy, Electric Franchise Fee.
Body
The City Council of the City of Saint Paul ordains as follows:
Section 1. That the Legislative Code be amended by adding thereto a new Appendix C-2 to read as follows:
APPENDIX C-2 - ELECTRIC FRANCHISE FEE ORDINANCE - NORTHERN STATES POWER, D/B/A XCEL ENERGY
An Ordinance Amending the Saint Paul Code of Ordinances by adding a new Appendix C-2 relating to Northern States Power, D/B/A Xcel Energy, Electric Franchise Fee.
Article 1. Purpose.
The City granted an Electric Franchise to Northern States Power Company d/b/a Xcel Energy, its successors and assigns (the “Company”) in Ordinance No. Ord 26-41, codified in the Saint Paul Code of Ordinances at Appendix C (the “Franchise”). Pursuant to Section 9.2 (Initial Franchise Fee) of the Franchise, the City is required to reflect the franchise fee in a separate franchise fee ordinance (the “Fee Ordinance”). This Ordinance shall be the Fee Ordinance required by the Franchise.
Article 2. Franchise Fee.
Section 2.1. Initial Franchise Fee. The Company shall pay the City an initial franchise fee based upon the Company’s Gross Revenues, as defined by the Franchise, under the indicated rate classes (See attached Exhibit #1):
For any other customer classes not included in this section or modified by the Company in its electric tariffs on file with the Minnesota Public Utilities Commission, the initial franchise fee shall be five percent (5%) of Gross Revenues. The franchise fee shall be paid monthly in accordance with section 9.5 (Franchise Fee Payment) of the Franchise. The franchise fee does not include permit fees or other costs recovered from the Company by the City.
Section 2.2. Franchise Fee Reservation. The initial franchise fee shall remain in effect for the first year of the Franchise. After the first year of the Franchise, the City may adjust the franchise fee by amending this Fee Ordinance; provided, the Company receives Notice of at least sixty (60) days of such proposed Fee Ordinance amendment to the Company. The initial franchise fee and any subsequent modification to the franchise fee shall not become effective until the beginning of a Company billing month at least 60 days after written Notice enclosing such adopted Fee Ordinance has been served upon Company by certified mail. Any change to the franchise fee shall not occur more often than once within any twelve consecutive calendar months and shall be effective upon the same notice requirements. Notwithstanding any amendment to this Fee Ordinance or any other action by the City, the franchise fee set forth in the Fee Ordinance shall never be less than the minimum percentage floor established by the City Charter. Any purported reduction of the franchise fee below the Charter floor shall be void and of no effect with respect to the Company’s payment obligations hereunder. The Company shall pay the franchise fee, so long as the Franchise remains in place and for up to one (1) year from the date of termination of the Franchise while the parties are negotiating a new agreement.
Section 2.3. Surcharge. The City recognizes that the Company may request the Minnesota Public Utilities Commission to allow the Company to add a surcharge to customer rates of City residents to reimburse Company for the cost of the franchise fee.
Article 3. Enforcement.
Any dispute, including enforcement of a default regarding this ordinance will be resolved in accordance with Section 2.8 (Dispute Resolution) of the Franchise.
Article 4. Effective Date of Franchise Fee.
The effective date of this Fee Ordinance shall be the earlier of January 1, 2027, or the effective date of the Franchise. On the effective date, payment of the franchise fee shall commence as provided above.
This Ordinance shall take effect and be in force thirty (30) days following its passage, approval and publication.