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ORDINANCE NO. CITY OF LITTLE CANADA COUNTY OF RAMSEY STATE OF MINNESOTA AN ORDINANCE IMPLEMENTING AN ELECTRIC FRANCHISE FEE ON NORTHERN STATES POWER D /B /A XCEL ENERGY FOR PROVIDING ELECTRIC SERVICE WITHIN THE CITY OF LITTLE CANADA THE CITY OF LITTLE CANADA ORDAINS: SECTION 1. The City of Little Canada Municipal Code Appendix is hereby amended to include reference to the following Special Ordinance. Subdivision 1. Purpose. The Little Canada 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 natural gas and electric services within the City of Little Canada. (a) Pursuant to City Ordinance No. , a Franchise Agreement between the City and Northern States Power Company, d/b /a Xcel Energy, the City has the right to impose a franchise fee on Xcel Energy in amount and fee design as set forth in Section 9.1 of the Xcel Energy Franchise and in the fee schedule attached as Exhibit A. Subd. 2. Franchise Fee. A franchise fee is hereby imposed on Xcel Energy under its Electric Franchise in accordance with the schedule attached hereto and made a part of this ordinance, commencing with the Xcel Energy's October 2003 billing month. This fee is an account based fee 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 will have an account for each rate classification, which will result in more than one franchise fee assessment for electric service 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 that premise before this ordinance was adopted will control. Subd. 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. Subd. 4. Surcharge. The City recognizes that the Minnesota Public Utilities Commission allows the utility company to add a surcharge to customer rates to reimburse such utility company for the cost of the fee and that Xcel Energy will surcharge its customers in the City the amount of the fee. -10-