2013-26 UPDATE - 01-13-14 - Gas Franchise - CenterPoint Energy - Change tariff to update franchise fee in the City of Richfield n+ 800 LaSalle Avenue
P.O. Box 59038
Energy Minneapolis, MN 55459-0038
January 13, 2013
Dr. Burl Haar
Executive Secretary
Minnesota Public Utilities Commission
350 Metro Square Building
121 East Seventh Place, Suite 350
St. Paul, Minnesota 55101-2147
INFORMATIONAL FILING:
CHANGE TARIFF TO UPDATE FRANCHISE FEE IN THE CITY OF RICHFIELD
RE: Docket No. G999/PR-14-7
Dear Dr Haar:
On March 23, 2011 the Minnesota Public Utilities Commission (PUC) issued an order in
Docket E,G999/CI-09-970 that authorized utilities to implement a new or amended franchise
fee on customer's bills without prior Commission approval if certain conditions have been
met.
The City of Richfield recently adopted a new franchise fee ordinance. With this filing,
CenterPoint Energy updates its tariff without changing the fee amount for the City of
Richfield effective April 1, 2014.
CenterPoint Energy has met the Commission's conditions by doing the following:
a) This filing exceeds the 60 day prior requirement. CenterPoint Energy will serve a
copy of the filing on the City of Richfield.
b) CenterPoint Energy agrees to use the notice language on the first bill on which the
new fee is listed.
c) The utility will list the fee as a separate line item on the bill each month;
d) The utility has attached copies of the franchise fee ordinance adopted, as required.
(See Attachment C for a copy of City of Richfield Franchise Fee Ordinance No.
2013-26.)
e) The utility has included a revised tariff page listing the new or amended fee in both
redline and final format. (See Attachments A and B.)
f) The utility has included a statement in its tariff that the utility will remit 100 percent of
the fee it collects and has not included any administrative fee or other rate for the
utility's costs of administering the fee. (see Section V, Page 24.)
CenterPoint Energy includes the following as attachments:
Attachment A: CenterPoint Energy Franchise Fee Rider- REDLINE
Section V, Page 24.a
Attachment B: CenterPoint Energy Franchise Fee Rider— FINAL COPY
Section V, Page 24.a
Attachment C: City of Richfield Franchise Fee Ordinance No. 2013-26 (5 pages)
If you have any questions regarding the information provided in this filing, please contact me
at(612) 321-4677.
Sincerely,
s/
Kevin D. Marquardt
Regulatory Services
Regulatory Analyst
CC:
Nancy Gibbs
City Clerk
City of Richfield
6700 Portland Avenue
Richfield, MN 55423
AFFIDAVIT OF SERVICE
STATE OF MINNESOTA )
ss.
COUNTY OF HENNEPIN )
Kevin D. Marquardt, being first duly sworn on oath, deposes and says he served the attached
letter on the Minnesota Public Utilities Commission, Minnesota Department of Commerce,
the Office of the Attorney General, and all others on the attached service lists by E-filing or
by placing in the U.S. Mail at the City of Minneapolis. In addition, a copy was sent to the
City of Richfield as required.
/s/
Kevin D. Marquardt, Regulatory Analyst
Subscribed and sworn to before me
This 13th day of January, 2013
/s/
Mary Jo Schuh
Notary Public
My Commission Expires 1/31/15
Attachment A
CenterPoint Energy's Franchise Fee Rider
Section V, Page 24.a
REDLINE
etnrPointe
Energy Section V
Eleventh-Twelfth Revised Page 24.a
Replacing Tenth Eleventh Revised Page 24.a
FRANCHISE FEE RIDER(CONTINUED)
Com/Ind Small Large
Corn-A B Volume
Com/Ind C SVDF B Volume Dual
City Residential Less than 1,500> >5,000 Dual Fuel > 120,000 Fuel>1,999 Effective
1,500 or< therms/yr A therms/yr therms Peak Date
therms/yr 5,000 < 120,000 Day
therms/yr therms/yr
Lake Crystal 5% 5% 5% 5% 5% 5% 5% 08/01/2003
Lexington 3% 3% 3% 3% 3% 3% 3% 10/01/2010
Little Falls $1.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 01/01/2004
Long Prairie $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 01/01/2007
Mankato $.95 $2.50 $5.25 $12.00 $15.00 $20.00 $25.00 10/01/2008
Melrose 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 01/01/2014
Minneapolis 4.50% 5% 5% 5% 5% 5% 3% 01/01/1992
Morris $2.00 $5.00 $9.00 $27.00 $35.00 $35.00 $750.00 07/01/2004
Mound $2.75 $2.75 $2.75 $2.75 $2.75 $2.75 $2.75 01/01/2014
Mounds View 4% 4% 4% 4% 4% 4% 4% 01/01/2014
New Hope $1.50 $3.00 $6.00 $20.00 $30.00 $40.00 $60.00 01/01/2004
North $1.00 $5.00 $10.00 $15.00 $20.00 $30.00 $75.00 06/01/2008
Mankato
Oakdale $1.50 $5.00 $5.00 $8.00 $17.00 $17.00 $17.00 01/01/2011
Osseo 2% 2% 2% 2% 2% 2% 2% 3/1/2012
Owatonna 1.75% 1.75% 1.75% 1.00% 1.00% 1.00% 1.00% 01/01/2003
Prior Lake $1.50 $1.50 $5.00 $5.00 $10.00 $10.00 $50.00 07/01/2006
$2:05 $6-33 a 4.
$14.08 $ 98 $1X1.08 $x 4:98
Richfield $2:85 4.10 4.10 12.50 30.00 30.00 30.00 185.00 04/01/2014
g
Richmond $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 05/01/2013
Robbinsdale 4% 4% 4% 4% 4% 4% 4% 06/01/2011
Sauk Centre 3% 3% 3% 3% 3% 3% 3% 07/01/2012
Sleepy Eye 2% 2% 2% 2% 2% 2% 2% 01/01/1998
St.Augusta $3.00 $5.00 $5.00 $5.00 $3.00 $3.00 $5.00 01/03/2010
St. Louis $2.50 $2.50 $4.50 $13.75 $13.75 $13.75 $77.00 03/01/2013
Park
Waseca $1.40 $1.80 $5.00 $16.00 $100.00 $150.00 $300.00 09/01/2010
Winnebago $1.50 $1.50 $4.25 $10.50 $11.00 $50.00 $75.00 12/1/2011
Winsted $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 04/01/2012
Note: Percents are calculated on percent of revenue.
Date Filed:Gstel3er-January 13 � 20143 Effective Date: Getebec-January 13, 2014 7, 2013
Docket No: G999/PR-14-7 3-7
Issued by:Jeffrey A. Daugherty, Director, Regulatory and Legislative Activities
Attachment B
CenterPoint Energy's Franchise Fee Rider
Section V, Page 24.a
FINAL COPY
certtetPoinre,
The Section V
Twelfth Revised Page 24.a
Replacing Eleventh Revised Page 24.a
FRANCHISE FEE RIDER(CONTINUED)
Com/Ind Small Large
Com-A B Com/Ind C Volume SVDF B Volume Dual
City Residential Less than 1,500> >5,000 Dual Fuel > 120,000 Fuel>1,999 Effective
1,500 or< therms/yr A therms/yr therms Peak Date
therms/yr 5,000 < 120,000 Day
therms/yr therms/yr
Lake Crystal 5% 5% 5% 5% 5% 5% 5% 08/01/2003
Lexington 3% 3% 3% 3% 3% 3% 3% 10/01/2010
Little Falls $1.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 01/01/2004
Long Prairie $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 01/01/2007
Mankato $.95 $2.50 $5.25 $12.00 $15.00 $20.00 $25.00 10/01/2008
Melrose 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 01/01/2014
Minneapolis 4.50% 5% 5% 5% 5% 5% 3% 01/01/1992
Morris $2.00 $5.00 $9.00 $27.00 $35.00 $35.00 $750.00 07/01/2004
Mound $2.75 $2.75 $2.75 $2.75 $2.75 $2.75 $2.75 01/01/2014
Mounds View 4% 4% 4% 4% 4% 4% 4% 01/01/2014
New Hope $1.50 $3.00 $6.00 $20.00 $30.00 $40.00 $60.00 01/01/2004
North $1.00 $5.00 $10.00 $15.00 $20.00 $30.00 $75.00 06/01/2008
Mankato
Oakdale $1.50 $5.00 $5.00 $8.00 $17.00 $17.00 $17.00 01/01/2011
Osseo 2% 2% 2% 2% 2% 2% 2% 3/1/2012
Owatonna 1.75% 1.75% 1.75% 1.00% 1.00% 1.00% 1.00% 01/01/2003
Prior Lake $1.50 $1.50 $5.00 $5.00 $10.00 $10.00 $50.00 07/01/2006
Richfield $4.10 $4.10 $12.50 $30.00 $30.00 $30.00 $185.00 04/01/2014
Richmond $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 05/01/2013
Robbinsdale 4% 4% 4% 4% 4% 4% 4% 06/01/2011
Sauk Centre 3% 3% 3% 3% 3% 3% 3% 07/01/2012
Sleepy Eye 2% 2% 2% 2% 2% 2% 2% 01/01/1998
St.Augusta $3.00 $5.00 $5.00 $5.00 $3.00 $3.00 $5.00 01/03/2010
St. Louis $2.50 $2.50 $4.50 $13.75 $13.75 $13.75 $77.00 03/01/2013
Park
Waseca $1.40 $1.80 $5.00 $16.00 $100.00 $150.00 $300.00 09/01/2010
Winnebago $1.50 $1.50 $4.25 $10.50 $11.00 $50.00 $75.00 12/1/2011
Winsted $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 04/01/2012
Note: Percents are calculated on percent of revenue.
Date Filed:January 13, 2014 Effective Date: January 13,2014
Docket No: G999/PR-14-7
Issued by: Jeffrey A. Daugherty, Director, Regulatory and Legislative Activities
Attachment C:
City of Richfield
Franchise Fee
Ordinance No. 2013-26 (5 pages)
Effective on the 1st day of April, 2014
eg4C4 ce Public Works Department
December 16, 2013
MAYOR
DEBBIE GOETTEL
CITY COUNCIL Mr. Kevin Joyce
PAT ELLIOTT CenterPoint Energy
TOM FITZHENRY 501 W 61st St
EDWINA GARCIA Minneapolis, MN 55419
SUZANNE M.SANDAHL
Dear Mr, Joyce:
CITY MANAGER
STEVEN L.DEVICH This letter is to inform you that the City of Richfield City Council approved to increase the rate
on all meter classes of the Gas Franchise Fee. The rate increases are as follows:
Class Fee Per Account
Residential 2,08 4.10
Comm-A 2.05 4.10
Comm/Ind-B - 12.50
Comm/Ind-C 4408 30.00
SVDF-A 44:08 30.00
SVDF-B 11.08 30.00
LVDF 4408 185.00
Enclosed is a copy of the adopted Ordinance No 2013-26 and its certification. These
documents have been delivered via certified mail as stated in Subd. 7. The amended fee
schedule is attached to the adopted ordinance and should commence with the Centerpoint
Energy's April 2014 billing as stated in Subd. 2.
If you need further information or have any questions, please feel free to contact me at 612-
861-9174. Thank you for your help.
Sincerely,
r
Chris Link
Operations Superintendent
CL:jk
The urban Hoiiietow n
6700 PORTLAND AVENUE, RICHFIELD, MINNESOTA 55423 612.661.9700 FAX: 612.861.9749
WAY cayof,CW d.org AN EQUAL OPPORTUNITY EMPLOYER
STATE OF MINNESOTA )
COUNTY OF HENNEPIN ) ss
CITY OF RICHFIELD )
I, Theresa Schyma, being the duly qualified deputy clerk of the City of
Richfield, Hennepin County, Minnesota, do hereby certify that the foregoing is a true
and exact copy of Ordinance No. 2013-26.
And that the same is on file and on record in my office.
Given under my hand and seal
This 12th day of December, 2013.
Ther a Schyma
Deputy City Clerk
City of Richfield
Hennepin County, Minnesota
ORDINANCE NO. 2013-26
CITY OF RICHFIELD
COUNTY OF HENNEPIN
STATE OF MINNESOTA
AN ORDINANCE MODIFYING THE GAS FRANCHISE FEE ON
CENTERPOINT ENERGY FOR PROVIDING GAS SERVICE WITHIN
THE CITY OF RICHFIELD
THE CITY OF RICHFIELD ORDAINS:
SECTION 1. The City of Richfield Municipal Code Appendix E is hereby amended as
follows:
Subdivision 1. Purpose. The Richfield 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 Richfield.
(a) Pursuant to City Ordinance No. 2003-10, a Franchise Agreement between the
City and CenterPoint Energy ("CenterPoint"), the City has the right to impose
a franchise fee on CenterPoint in an agreed upon amount and fee design, as
set forth in Section 6.1 of the CenterPoint Franchise.
(b) Pursuant to City Ordinance 2010-7, the City exercised its right to impose a
franchise fee on CenterPoint. This includes the right to modify the fee amount
with the consent of CenterPoint as to amount and notice period, to which
CenterPoint has consented.
Subd. 2. Franchise Fee Statement. Pursuant to Ordinance 2010-7, the
franchise fee imposed on CenterPoint under its Gas Franchise is hereby amended. The
amended fee schedule is attached hereto as Exhibit A and made a part of this
ordinance, commencing with CenterPoint's April 2014 billing month. The franchise fee
income shall be used for right-of-way improvements.
Subd. 3. Payment. The said franchise fee shall be payable to the City in
accordance with the terms set forth as follows. The franchise fee shall be payable
quarterly and shall be based on the complete billing months during the period for which
payment is to be made. The payment shall be due the last business day of the month
following the period for which the payment is made. The fee may be changed by
ordinance from time to time; however each change shall meet the same notice
requirements and may not occur more often than annually. Such fee shall not exceed
any amount, which the Company may legally charge to its customers prior to payment to
the City by imposing a surcharge equivalent to such fee in its rates for Gas service. The
Company may pay the City the fee based upon the surcharge billed subject to
subsequent reductions to account for uncollectibles or customer refunds. The time and
manner of collecting the franchise fee is subject to approval of the Public Utilities
Commission, which the Company agrees to use best efforts to obtain. 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 that is not public data which would indicate the amount paid by any
identifiable customer or any other information regarding specific customers.
Subd. 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 CenterPoint will
surcharge its customers in the City the amount of the fee.
Subd. 5. Record Support for Payment. CenterPoint 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.
Subd. 6. Enforcement. Any dispute, including enforcement of a default
regarding this ordinance will be resolved in accordance with Section 2.5 the Franchise
Agreement.
Subd. 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 Subdivision 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 CenterPoint by certified mail. It has been agreed to in
advance by CenterPoint's representatives that CenterPoint will abide by the provisions
of this Subdivision 7, provided fee collection will not commence before the later of the
Company billing month set forth in subdivision 2 or the first billing month commencing
20 days after the foregoing effective date of the franchise fee.
SECTION 2. This Ordinance will be effective in accordance with Section 3.09 of the
City Charter.
Adopted by the City Council of the City of Richfield, Minnesota this 10th day of
December, 2013
r 60.d./. 1#
C�..J
Debbie Goettel, Mayor
ATTEST:
1
Nancy Gibbdity Clerk
•
EXHIBIT A
CENTERPOINT GAS FRANCHISE
FEE SCHEDULE
Class Fee Per Account
Residential 2:05 4.10
Comm-A 2:05 4.10
Comm/Ind-B U3 12.50
Comm/lnd-C 44,08 30.00
SVDF-A 14.08 30.00
SVDF-B 14.08 30.00
LVDF 44:08 185.00
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.
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