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DOCSOPEN\LA515\143\1007375.v1-1/28/25 1 <br />CITY OF LAKE ELMO <br />WASHINGTON COUNTY <br />STATE OF MINNESOTA <br /> <br />ORDINANCE NO. 2025-07 <br /> <br />AN ORDINANCE IMPLEMENTING A GAS SERVICE FRANCHISE FEE ON NORTHERN <br />STATES POWER COMPANY, A MINNESOTA CORPORATION, ITS SUCCESSORS AND <br />ASSIGNS, FOR PROVIDING GAS SERVICE WITHIN THE CITY OF LAKE ELMO <br /> <br />THE CITY COUNCIL OF THE CITY OF LAKE ELMO DOES ORDAIN: <br /> <br />SECTION 1. The Municipal Code is hereby amended to include reference to the following Special <br />Ordinance. <br /> <br /> Subd. 1. Purpose. The Lake Elmo City Council has determined that it is in the best interest of the <br />City to impose a franchise fee on those public utility companies that provide natural gas services within the <br />City. <br /> <br />(a) Pursuant to City Ordinance 2025-04, a Franchise Agreement between the City of Lake Elmo <br />and Northern States Power Company, a Minnesota corporation, its successors and assigns, the <br />City has the right to impose a franchise fee on Northern States Power Company, a Minnesota <br />corporation, its successors and assigns, in an amount as set forth in the fee schedule attached <br />hereto as Schedule A. <br /> <br />Subd. 2. Franchise Fee Statement. A franchise fee is hereby imposed on Northern <br />States Power Company, a Minnesota Corporation, its successors and assigns, under its gas franchise in <br />accordance with the schedule attached here to and made a part of this Ordinance, commencing with the <br />NSPM June, 2025 billing month. <br /> <br />This fee is an account-based fee on each premise and not a meter-based fee. In the event that an <br />entity covered by this ordinance has more than one meter at a single premise, but only one account, only <br />one fee shall be assessed to that account. If a premise has two or more meters being billed at different rates, <br />the Company may have an account for each rate classification, which will result in more than one franchise <br />fee assessment for gas service to that premise. If the Company combines the rate classifications into a <br />single account, the franchise fee assessed to the account will be the largest franchise fee applicable to a <br />single rate classification for energy delivered to that premise. In the event any entities covered by this <br />ordinance have more than one premise, each premise (address) shall be subject to the appropriate fee. In <br />the event a question arises as to the proper fee amount for any premise, the Company’s manner of billing <br />for energy used at all similar premises in the city will control. <br /> <br />Subd. 3. Payment. The said franchise fee shall be payable to the City in accordance <br />with the terms set forth in Section 9 of the Franchise. <br /> <br /> Subd. 4. Surcharge. The City recognizes that the Minnesota Public Utilities Commission may <br />allow Company to add a surcharge to customer rates of city residents to reimburse Company for the cost of <br />the fee. <br /> <br />Subd. 5. Enforcement. Any dispute, including enforcement of a default regarding