§ 9. Franchise Fee.  


Latest version.
  • 9.1. Franchise Fee. During the term of this franchise, and, in lieu of any permit or other fees being imposed on the Company, City imposes on the Company a franchise fee by collecting the amounts indicated in a fee schedule set forth in a separate ordinance from each customer in the designated customer class. The franchise fee may be expressed (i) as a specified charge per measurable unit of electricity being provided, transported, transmitted, sold, furnished, delivered, or received within the City, or (ii) as a percentage of the Gross Revenues received by the Company for its operations within the City, or (iii) a flat fee per customer based on service to retail customers within the City, or (iv) in such other manner or fashion as the City and the Company may determine.

    9.2. Initial Fee. The initial franchise fee shall be an amount equal to the percentage of that portion of the Company's annual Gross Revenues arising from its operations within the City, as follows:

    a.

    For residential service customers, four and one-half percent (4.5%) of Gross Revenues;

    b.

    For large (100kW or greater) commercial and industrial customers served at primary or higher voltages, three percent (3%) of Gross Revenues;

    c.

    For small (less than 100kW) commercial and industrial customers, large (100kW or greater) commercial or industrial customers served at secondary voltage, and all remaining classifications, five percent (5%) of Gross Revenues.

    The franchise fees shall be in lieu of permit or other fees being imposed on Company under City Ordinances. Company shall pay fees as provided in Section 3.3.

    9.3. Fee Payment. The franchise fee shall be payable monthly and shall be based on the amount collected by the Company during complete billing months during the period for which payment is to be made by imposing a surcharge equal to the designated franchise fee for the applicable customer classification in all customer billings for electric service in each class. The payment shall be due 25 days after the end of the month for which the payment is due. The time and manner of collecting the franchise fee is subject to the approval of the Commission. No franchise fee shall be payable by the Company if the Company is legally unable to first collect an amount equal to the franchise fee from its customers in each applicable class of customers by imposing a surcharge in the Company's applicable rates for electric services. The Company may pay the City the fee based upon the surcharge billed subject to reductions to account for uncollectibles, refunds and correction of erroneous billings. The Company agrees to make its records available for inspection by the City at reasonable times provided that the City and its designated representative agree in writing not to disclose any information which would indicate the amount paid by any identifiable customer or customers or any other information regarding identified customers.

    9.4. Separate Ordinance. The franchise fee shall be imposed by a separate ordinance duly adopted by the City Council (the "Fee Ordinance") which shall not be adopted until at least 60 days after written notice enclosing such proposed ordinance has been served upon the Company by certified mail. The fee Ordinance shall not become effective until the beginning of a Company billing month at least 60 days after written notice enclosing such adopted ordinance has been serviced upon Company by certified mail. Section 2.8 shall constitute the sole remedy for solving disputes between the Company and the City in regard to the interpretation of, or enforcement of, the separate ordinance. The Fee Ordinance may be changed by the City from time to time by ordinance; provided, however, such changes shall not occur more often than once within any twelve (12) consecutive calendar months and shall be effective upon the same notice requirements.

    9.5. Equivalent Fee Requirement.

    (a)

    Other energy franchises. The annual dollar amount of the franchise fee collected from a Company customer, or a reasonable estimate of the franchise fee that would be collected from a prospective Company customer, for electric service provided under this franchise shall not be materially greater than the annual dollar amount of the franchise fee that would be collected for similar service to such customer by a new energy supplier under the terms of a new franchise assuming comparable energy usage by said customer.

    (b)

    Definitions. For the purposes of this section only, the following terms shall have the meanings given. "Similar service" shall mean the supply of energy to a customer for the same end-use purpose or function as the electricity which is or could be furnished by the Company. "New franchise" shall mean a franchise granted to a new energy supplier after January 1, 2015, or an amendment to an existing franchise held by another energy supplier January 1, 2015. "New energy supplier" shall mean a supplier of energy other than the company which begins supplying energy in the City Public Way after January 1, 2015.

    (c)

    Waiver. The City may waive the requirement under paragraph (a) if, after one month's notice to and subsequent consultation with the Company, the City finds, by resolution, in its sole discretion, that waiver is necessary to encourage economic development within the City related to small, clean or renewable energy projects or for other public purposes. Once the requirement is waived, the City, in its sole discretion, may reinstate it at any time. If the Company consents in writing to a new franchise or separate ordinance collecting or failing to collect a fee from a new energy supplier in contravention of this section, the conditions of this section will be waived to the extent of such written consent.

    9.6. Fee Modification. If for any reason the amount or rate of the franchise fee shall be determined to be in excess of the amount or rate allowed by law, then the amount or rate shall be reduced to the maximum amount or rate permitted by law.

(2014-Or-086, § 1, 10-17-14, eff. 1-1-15)