2023-1200 An Ordinance Setting a Franchise Fee on Natural Gas Operations Within the City of Hopkins - Centerpoint Energy Resources Corporation d/b/a Centerpoint Energy Minnesota Gas CITY OF HOPKINS
COUNTY OF HENNEPIN
ORDINANCE 2023-1200
AN ORDINANCE SETTING A FRANCHISE FEE ON NATURAL GAS OPERATIONS
WITHIN THE CITY OF HOPKINS—CENTERPOINT ENERGY RESOURCES
CORPORATION D/B/A CENTERPOINT ENERGY MINNESOTA GAS
The City Council of the City of Hopkins ordains:
Subdivision 1. Purpose. The Hopkins City Council has determined that it is in the best interest
of the city to impose a franchise fee as authorized in Minnesota Statutes section 216B.36 on
those public utility companies that provide natural gas and electric services within the City of
Hopkins.
(a) Pursuant to City Ordinance No. 2002-879, a Franchise Agreement between the City of
Hopkins and CenterPoint Energy Resources Corporation d/b/a CenterPoint Energy
Minnesota Gas, its successors and assigns, the City has the right to impose a franchise fee
on CenterPoint Energy in an amount and fee design as set forth in Section 7 of the
CenterPoint Energy Franchise and in Subdivision 9 of this Ordinance.
Subdivision 2. Franchise Fee Statement. A franchise fee is hereby imposed on CenterPoint
Energy Resources Corporation d/b/a CenterPoint Energy Minnesota Gas, its successors and
assigns, under its gas franchise in accordance with Subdivision 9, commencing with CenterPoint
Energy's January 2024 billing month.
Subdivision 3. Payment. The said franchise fee shall be payable to the city in accordance with
the terms set forth in Section 7 of the Franchise and this Ordinance.
Subdivision 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.
Subdivision 5. Record Support for Payment. CenterPoint Energy shall make each payment
when due and, if requested by the city, shall provide at the time of each payment, a statement
summarizing how the franchise fee payment was determined, including information showing any
adjustments to the total surcharge billed in the period for which the payment is being made to
account for any uncollectibles, refunds, or error corrections.
Subdivision 6. Enforcement. Any dispute, including enforcement of a default regarding this
ordinance will be resolved in accordance with Section 2.6 the Franchise Agreement.
Subdivision 7. Effective Date of Franchise Fee and Repeal of City Ordinance 2018-1136
The effective date of this ordinance shall be after its publication and ninety (90) days after the
sending of written notice enclosing a copy of this adopted Ordinance to CenterPoint Energy by
certified mail. Upon the effective date of this Ordinance, City Ordinance 2018-1136 shall be
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repealed and replaced by this Ordinance 2023-1200. Collection of the fee shall commence as
provided above.
Subdivision 8. Termination of Ordinance
This ordinance and the franchise fee imposed by it shall remain in effect until December 31,2028,at
which time they shall terminate and be of no further effect, except that the Company shall remain
obligated after that date to pay the City all franchise fees due with respect to any period of time prior to
December 31, 2028, and collected after that date
Subdivision 9. Fee Schedule.
Class Percent (%) of Gross
Revenue Per Account
Residential 5.00%
Commercial A 4.25%
Commercial/Industrial B 4.25%
Commercial/Industrial C 4.25%
Small Dual Fuel A 4.25%
Small Dual Fuel B 4.25%
Large Volume Dual Fuel 4.25%
The term "gross revenues"means all sums, excluding the surcharge to reimburse the cost of the
franchise fee as described in Subdivision 4, received by the CenterPoint Energy from the sale of
gas within the corporate limits of the City, subject to subsequent reconciliation for uncollectibles,
refunds and correction of erroneous billings.
Franchise fees are to be collected by the CenterPoint Energy in the amounts set forth in the
above schedule and 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, and October-December collections due by January 31.
First Reading: September 5, 2023
Second Reading: September 19, 2023
Date of Publication: September 28, 2023
Date Ordinance Takes Effect: January 1, 2024
Adopted this 19th day of September, 2023 by the Hopkin ' o
P Han • , • ayor
Attest:
-eLe/1
Amy Domeier, City Clerk
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