Ordinance 560 Franchise FeeCITY OF SHOREWOOD
HENNEPIN COUNTY, MINNESOTA
ELECTRIC FRANCHISE FEE ORDINANCE
ORDINANCE 560
AN ORDINANCE IMPLEMENTING AN ELECTRIC SERVICE FRANCHISE FEE ON
NORTHERN STATES POWER COMPANY, A MINNESOTA CORPORATION, ITS
SUCCESSORS AND ASSIGNS, FOR PROVIDING ELECTRIC SERVICE WITHIN THE
CITY OF SHOREWOOD
THE CITY COUNCIL OF THE CITY OF SHOREWOOD DOES ORDAIN:
SECTION 1. The City of SHOREWOOD Municipal Code is hereby amended to include
reference to the following Special Ordinance.
Subdivision 1. Purpose. The Shorewood 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 Shorewood.
(a) Pursuant to City Ordinance No. , a Franchise Agreement between
the City of Shorewood and Northern States Power Company, a Minnesota corporation, its
successors and assigns, the City has the right to impose a franchise fee on Northern States
Power Company, a Minnesota corporation, its successors and assigns, in an amount and
fee design as set forth in Section 9.1 of the Northern States Power Company Franchise and
in the fee schedule attached hereto as Schedule A.
Subdivision 2. Franchise Fee Statement. A franchise fee is hereby imposed on Northern
States Power Company, a Minnesota Corporation, 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 NSPM
billing month.
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 said franchise fee shall be payable to the City in accordance
with the terms set forth in Section 9.4 of the Franchise.
Subdivision 4. Surcharge. The City recognizes that the Minnesota Public Utilities
Commission may allow Company to add a surcharge to customer rates to reimburse such Company
for the cost of the fee.
Subdivision 5. 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 6. 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 NSPM by certified mail. Collection of the fee shall commence as
provided above.
Passed this day of June, 2018.
ATTEST
Sandie Thone, City Clerk
2
Mayor Scott Zerby
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 Amount Per Month
Residential $ 4.00
Small C & I Non - Demand $ 8.00
Small C & I Demand $10.00
Large C & I $25.00
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.