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Newport Ordinance 2006-11

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Cottage Grove, 55016
SWC Bulletin
651-459-9491 customer support
Cottage Grove Minnesota 7584 80th Street South 55016

City of Newport

ORDINANCE NO. 2006-11

ADOPTING AN ORDINANCE FOR THE CITY OF NEWPORT, WASHINGTON COUNTY, MINNESOTA, AND NORTHERN STATES POWER COMPANY, A MINNESOTA CORPORATION, D/B/A XCEL ENERGY GAS FEE.

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The City Council of the City of Newport, Washington County, Minnesota, hereby ordains:

SECTION 1. PURPOSE.

The Newport 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 and electric services within the City of Newport.

(a) Pursuant to City Ordinance No. 2006-10, a Franchise Agreement between the City and Northern States Power Company, d/b/a Xcel Energy, the City has the right to impose a franchise fee on Xcel Energy in amount and fee design as set forth in Section 8.1 of the Xcel Energy Franchise and in the fee schedule attached hereto as Exhibit A.

SECTION 2. FRANCHISE FEE STATEMENT.

A franchise fee is hereby imposed on Xcel Energy under its Gas Franchise in accordance with the schedule attached hereto and made a part of this ordinance, commencing with Xcel Energy's January 2007 billing month.

SECTION 3. PAYMENT.

The said franchise fee shall be payable to the City in accordance with the terms set forth in Section 8.4 of the Franchise.

SECTION 4. SURCHARGE.

The City recognizes that the Minnesota Public Utilities Commission allows the utility company to add a surcharge to customer rates to reimburse such utility company for the cost of the fee and that Xcel Energy will surcharge its customers in the City the amount of the fee.

SECTION 5. RECORD SUPPORT FOR PAYMENT.

Xcel Energy shall make each payment when due and, if requested by the City, shall furnish a statement of gas usage by each customer class at the time of each payment for the period that the payment was made. Xcel Energy shall permit the City's designated representative reasonable access to the company's records for the purpose of verifying such statements.

SECTION 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.

SECTION 7. EFFECTIVE DATE OF FRANCHISE FEE.

Notwithstanding the effective date of this ordinance and notwithstanding any contrary provisions in the Franchise, the effective date of the fee collected under Section 2 of this ordinance is the later of ten (10) days after the publication or after the sending of written notice enclosing a copy of this adopted ordinance upon Xcel Energy by certified mail. It has been agreed to in advance by Xcel Energy's representatives that Xcel Energy will abide by the provisions of this Section 7.

SECTION 8. EFFECT.

This ordinance takes effect as and will be in full force from and after its adoption and publication, as provided by law.

The foregoing Ordinance was moved by Councilmember Schottmuller and seconded by Councilmember Wilcziek.

The following Councilmembers voted in the affirmative: Schottmuller, Wilcziek, Geraghty, White, Chapdelaine

The following Councilmembers voted in the negative:

ADOPTED by the City Council of the City of Newport, Minnesota this 19th day of October 2006.

SIGNED: Kevin Chapdelaine, Mayor

ATTEST: Lawrence Bodahl,

City Administrator

EXHIBIT A

XCEL ENERGY GAS FRANCHISE

FEE SCHEDULE

Class Fee Per Meter

Residential $0.50/per meter/per month

Comm. Firm $3.00/per meter/per Non-Demand month

Comm. Firm Demand $5.00/per meter/per month

Small Interruptible $10.00/per meter/per month

Large Interruptible $10.00/per meter/per month

Firm Transportation $10.00/per meter/per month

Interruptible $10.00/per Transportation meter/per month

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

October--December collections due by January 31

(Published in the South Washington County Bulletin on Wednesday, November 1, 2006.)

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