HomeMy WebLinkAbout2025-06CITY OF LAKE EI-MO
WASHINGTON COUNTY
STATE OF MINNESOTA
ORDINANCE NO.2025-06
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 LAKE ELMO
THE CITY COUNCIL OF THE CITY OF LAKE ELMO DOES ORDAIN:
SECTION 1. The Municipal Code is hereby amended to include reference to the following Special
Ordinance.
Subd.1. Purpose. The Lake Elmo City Council has detentlined that it is in the best interest of the
Cityto impose a franchise fee on those public utility companies that provide electric services within the City.
(a) Pursuant to City Ordinance 2025-03, a Franchise Agreement between the Cityof Lake Elmo
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 set forth in the fee schedule attached
hereto as Schedule A.
Subd. 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 June, 2025 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 citywill control.
Subd. 3. Payment. The said franchise fee shall be payable to the City in accordance
with the terms set forth in Section 9 of the Franchise.
Subd. 4. Surcharge. The City recognizes that the Minnesota Public Utilities Commission may
allow Company to add a surcharge to customer rates of city residents to reimburse Company for the cost of
the fee.
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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 $ 3.75
Small C & I — Non -Demand $ 2.50
Small C & I — Demand $ 23.00
Large C & I $ 175.00
Franchise fees are 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.
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