AN ORDINANCE IMPLEMENTING AN ELECTRIC SERVICE FRANCHISE FEE ON MIENERGY COOPERATIVE, A MINNESOTA COOPERATIVE, ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING ELECTRIC SERVICE WITHIN THE CITY OF WHALAN:
The City Council of the City of Whalan has enacted Ordinance No. 2025-02, Electric Service Franchise Fee, to implement an electric service franchise fee on MiEnergy Cooperative, for providing electric service within the City of Whalan.
The following is an official summary of Ordinance No. 2025-02, which was passed by the City Council of the City of Whalan on April 14, 2025.
This Ordinance regulates the Franchise Fee, consistent with the Franchise Agreement, between the City of Whalan and MiEnergy Cooperative to construct, operate, repair and maintain an electric distribution system for the purpose of furnishing electric energy within the City of Whalan.
Section 1 includes a purpose section where the City of Whalan determined that it is in the best interest of the City to impose a Franchise Fee on those public utility companies that provide electric services within the City of Whalan.
Section 2 provides the terms of the Franchise Fee to be equal to $5.00 per month for each electric service customer served within the City by MiEnergy, excluding any City meters and community wells. The fee shall commence with the Company’s January 2025 billing month.
Section 3 provides for Payment Fee and Modification. The Franchise Fee is payable quarterly and is based on the amount collected by MiEnergy during 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 (i.e, the fee for January – March shall be due April 30th; the fee for April – June shall be due July 31; the fee for July – September shall be due October 31; and the fee for October – December shall be due January 31).
Section 4 provides Surcharge language, which states the City recognizes that the Minnesota Public Utilities Commission may allow MiEnergy to add a surcharge to customer rates of City residents to reimburse MiEnergy for the cost of the fee. MiEnergy agrees that it is prohibited from adding an administrative fee of any kind on to the Franchise Fee.
Section 5 provides for an enforcement mechanism to be resolved in accordance with Section 2.5 of the Franchise Ordinance.
Section 6 provides an Effective Date for the Franchise Fee of January 01, 2025, by mutual agreement of the Parties.
A complete copy of Ordinance No. 2025-02, Electric Service Franchise Fee, is available for inspection by any persons during regular office hours at the office of the City Clerk at the Whalan City Hall, 824 Oak Street, Whalan, Minnesota 55949. Interested Parties can also request a copy by mail or electronic mail.
This Summary was approved by the City Council of Whalan this 14th day of April, 2025.
Publish 28