HomeMy WebLinkAbout2025-08CITY OF LAKE ELMO
WASHINGTON COUNTY
STATE OF MINNESOTA
ORDINANCE NO.2025-08
AN ORDINANCE IMPLEMENTING A GAS SERVICE FRANCHISE FEE ON
CENTERPOINT ENERGY RESOURCES CORP., A DELAWARE 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 City to impose a franchise fee on those public utility companies that provide natural gas services
within the City.
(a) Pursuant to City Ordinance 2025-05, a Franchise Agreement between the City of Lake
Elmo and CenterPoint Energy Resources Corp. ("Company"), d/b/a CenterPoint Energy
Minnesota Gas ("CenterPoint Energy") its successors and assigns, the City has the right to
impose a franchise fee on CenterPoint Energy Resources Corp, d/b/a CenterPoint Energy
Minnesota Gas, its successors and assigns, in an amount and fee design as set forth in
Section 9 of the CenterPoint Energy Resources Corp. Franchise and in the fee schedule
attached hereto as Schedule A.
Subd. 2. Franchise Fee Statement. A franchise fee is hereby imposed on 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 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 Company's manner of billing for energy used at all similar premises in the city 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 of the Franchise.
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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.
Subd. 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.
Subd. 6. Effective Date of Franchise Fee. This Ordinance shall be after its passage and
publication. Collection of the fee shall commence as provided above.
Passed and approved: V (V 61 4 , 2025.
Charles Cadenhead, Mayor
Attest:
Juli J so*ilerk
SEAL
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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:
Customer Classification
Residential
Firm A
Firm B
Firm C
Small Volume Dual Fuel A ("SVDF A")
Small Volume Dual Fuel B ("SVDF B")
Large Volume Dual Fuel ("LVDF")
Large Volume Firm ("LGS/LVF")
Amount per Account per Month ($)
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.
$ 2.00
per month
$ 2.00
per month
$ 18.00
per month
$ 18.00
per month
$ 80.00
per month
$ 175.00
per month
$ 175.00
per month
$ 175.00
per month
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