HomeMy WebLinkAbout2025-07CITY OF LAKE ELMO
WASHINGTON COUNTY
STATE OF MINNESOTA
ORDINANCE NO.2025-07
AN ORDINANCE IMPLEMENTING A GAS SERVICE FRANCHISE FEE ON NORTHERN
STATES POWER COMPANY, A MINNESOTA CORPORATION, ITS SUCCESSORS AND
ASSIGNS, FOR PROVIDING GAS 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 determined that it is in the best interest of the
Cityto impose a franchise fee on those public utilitycompanies that provide natural gas services within the
City.
(a) Pursuant to City Ordinance 2025-04, a Franchise Agreement between the City of 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 as 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 gas 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 gas 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 Companys 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 Companyto add a surcharge to customer rates of city residents to reimburse Companyfor the cost of
the fee.
Subd. 5. Enforcement. Any dispute, including enforcement of a default regarding
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this ordinance will be resolved in accordance with Section 2.5 of the Franchise Agreement.
Subd. 6. Effective Date of Franchise Fee. This Ordinance shall be after its passage and
publication. Collection of the fee shall commence as provided Mi above.
Passed and approved: March 4, 2025.
Attest:
on, ity erk
SEAL
Charles Cadenhead, Mayo
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SCHEDULE A
Franchise Fee Rates:
Gas 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
Residential
Commercial Firm Non -Demand
Commercial Firm Demand
Small Interruptible
Medium and Large Interruptible
Firm Transportation
Interruptible Transportation
Amount per month
$ 2.00
$ 8.00
$ 18.00
$ 80.00
$175.00
$175.00
$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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