2023-1199 An Ordinance Setting a Franchise Fee on Electric Operations Within the City of Hopkins - Northern States Power d/b/a Xcel Energy CITY OF HOPKINS
COUNTY OF HENNEPIN
ORDINANCE NO. 2023-1199
AN ORDINANCE SETTING A FRANCHISE FEE ON ELECTRIC OPERATIONS
WITHIN THE CITY OF HOPKINS—NORTHERN STATES POWER D/B/A XCEL
ENERGY
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. 2007-984, a Franchise Agreement between the City of
Hopkins and Northern States Power Company, a Minnesota corporation, dba Xcel
Energy, its successors and assigns, the city has the right to impose a franchise fee on
Northern States Power Company, a Minnesota corporation, dba Xcel Energy, its
successors and assigns, in an amount and fee design as set forth in Section 9 of the
Northern States Power Company Franchise and in Subdivision 9 of this Ordinance.
Subdivision 2. Franchise Fee Statement. A franchise fee is hereby imposed on Northern
States Power Company, a Minnesota corporation, dba Xcel Energy, its successors and assigns,
under the electric franchise in accordance with Subdivision 9, commencing with the Xcel
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 9 of the Franchise and the terms of this Ordinance.
Subdivision 4. Surcharge. The city recognizes that the Minnesota Public Utilities Commission
may allow Company to add a surcharge to customer rates to reimburse Company for the cost of
the fee.
Subdivision 5. Record Support for Payment. Xcel 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 2.5 of the Franchise Agreement.
Subdivision 7. Effective Date of Franchise Fee and Repeal of City Ordinance 2018-1135
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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 Xcel Energy by certified
mail. Collection of the fee shall commence as provided above. Upon the effective date of this
Ordinance, City Ordinance 2018-1135 shall be repealed and replaced by this Ordinance 2023-
1199.
Subdivision 8. Termination of Ordinance
This ordinance and the franchise fee imposed by it shall remain in effect until December 31 2026,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, 2026, and collected after that date
Subdivision 9. Fee Schedule.
Class Percent (%) of Gross
Revenue Per Account
Residential 5.00%
Sm C& I—Non-Dem 4.25%
Sm C& I—Demand 4.25%
Large C & I 4.25%
The term "gross revenues" shall have the same meaning as in Section 9.2 of the Franchise.
Franchise fees are to be collected by the Utility 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 191" day of September, 2023 by the Hopkins City Council.
/'atrick Hanlon, Mayor
Attest:
ar---)cyA,Lev,t
Amy Domeier. City Clerk
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