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Home My WebLink About2014-07-16 PACKET 04.P. REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 07/16/14 • � , PREPARED BY Finance Robin Roland � ORIGINATING DEPARTMENT DEPARTMENT HEA �**�****�*�*�***:�***********************�*:�***** COUNCIL ACTION REQUEST Consider change to Electric Service Franchise Fee. STAFF RECOMMENDATION Adopt ordinance changing the amount of the Electric Service Franchise Fee. Adopt a resolution authorizing publication in summary of the ordinance. BUDGET IMPLICATION BUDGETED AMOUNT ACTUAL AMOUNT ADVISORY COMMISSION ACTION DATE REVIEWED APPROVED DENIED ❑ PLANNING ❑ ❑ ❑ ❑ PUBLIC SAFETY ❑ ❑ ❑ ❑ PUBLIC WORKS ❑ ❑ ❑ ❑ PARKS AND RECREATION ❑ ❑ ❑ ❑ HUMAN SERVICES/RIGHTS ❑ ❑ ❑ ❑ ECONOMIC DEV. AUTHORITY ❑ ❑ ❑ ❑ ❑ ❑ ❑ SUPPORTING DOCUMENTS � MEMO/LETTER: � RESOLUTION: � ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ❑ OTHER: ADMINISTRATORS COMMENTS ; s' 9� O ( � City Administrator Date *************��*******************�********:�**** H:\Council items\council-action.docx Cottage � Grove ; � Pride and QrOSPerity Meet To: Mayor and City Council Members Ryan Schroeder, City Administrator From: Robin Roland, Finance Director Date: July 3, 2014 Subject: Consider change to electric franchise fee INTRODUCTION In 2013, at the request of the City Council, certain electrical facilities were undergrounded by Xcel Energy in conjunction with two road construction projects. Costs for the electrical undergrounding were agreed to be recouped by Xcel through the "City-Requested Facilities Surcharge" or CRFS program once final project expenses were known. DISCUSSION The CRFS program allows Xcel to impose a billing surcharge on the customers in the Cottage Grove area for a period of time and in an amount agreeable to the City Council. The amounts proposed by Xcel are for a 15 month timeframe commencing October 1, 2014 and are as follows: Class Residential $1.00 Small C & I — Non-Dem $1.00 Small C & I — Demand $3.00 Large C & I $4.00 Public Street Lighting $3.30 Muni Pumping —N/D $1.00 Muni Pumping-Dem $4.00 At the time the CRFS program was discussed with Council, it was agreed that there should be as little impact to residents/Xcel customers as possible. It was proposed that the City reduce the electric franchise fees due from Xcel for the corresponding time frame by a similar amount to the CRFS surcharge. In other words, the amount billed to Xcel electric customers would remain the same as the amount of the current franchise fee pass through on customer billings. Xcel would retain the surcharge amount and remit the reduced franchise amount to the City. To satisfy the legalities of this situation, the City Council must change the existing electric franchise fee ordinance. The revised ordinance is attached with this item. The proposed changes are as follows: Class Current fee Proposed Residential �-6� $ 0.65 Small C& I- Non-Dem $�-�� $ 0.65 Small C& I- Demand �a $ 5.25 Large C & I �-88 $29.00 Public Street Lighting $�3A $ 2.30 Muni Pumping-N/D $5-�� $0.00 Muni Pumping-Demand $�� $ 4.25 Staff will bring the electric franchise fee ordinance back to Council in December 2015 to increase the fees after the 15 months of surcharge have passed. ACTION REQUESTED • Adopt the attached Electric Service Franchise fee ordinance. • Adopt the resolution authorizing publication of the Ordinance by Title and Summary. i ORDINANCE NO. AN ORDINANCE IMPLEMENTING AN ELECTRIC SERVICE FRANCHISE FEE ON NORTHERN STATES POWER COMPANY, A MINNESOTA CORPORATION, D/B/A XCEL ENERGY, ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING ELECTRIC SERVICE WITHIN THE CITY OF COTTAGE GROVE. THE CITY COUNCIL OF THE CITY OF COTTAGE GROVE DOES ORDAIN: SECTION 1. The City of Cottage Grove Municipal Code is hereby amended to include reference to the following Special Ordinance. Subdivision 1. Purpose. The Cottage Grove 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 electric services within the City of Cottage Grove. (a) Pursuant to City Ordinance No. 864 a Franchise Agreement between the City of Cottage Grove and Northern States Power Company, a Minnesota corporation, d/b/a Xcel Energy, its successors and assigns, the City has the right to impose a franchise fee on Northern States Power Company, a Minnesota corporation, d/b/a 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 the fee schedule attached hereto as Schedule A. � Subdivision 2. Franchise Fee Statement. A franchise fee is hereby imposed on Northern States Power Company, a Minnesota Corporation, d/b/a Xcel Energy, its successors and assigns, under its electric franchise in accordance with the schedule attached here to and made a part of this Ordinance, commencing with the Xcel Energy October, 2014 billing month. This fee is an account-based fee on each premise and not a meter-based fee. In the event that an entity covered by this ordinance has more than one meter at a single premise, but only one account, only one fee shall be assessed to that account. If a premise has two or more meters being billed at different rates, the Company may have an account for each rate classification, which will result in more than one franchise fee assessment for electric service to that premise. If the Company combines the rate classifications into a single account, the franchise fee assessed to the account will be the largest franchise fee applicable to a single rate classification for energy delivered to that premise. In the event any entities covered by this ordinance have more than one premise, each premise (address) shall be subject to the appropriate fee. In the event a question arises as to the proper fee amount for any premise, the Company's manner of billing for energy used at all similar premises in the city will control. Subdivision 3. Pavment. The said franchise fee shall be payable to the City in accordance with the terms set forth in Section 9.4 of the Franchise. Subdivision 4. Surcharqe. The City recognizes that the Minnesota Public Utilities Commission may allow Company to add a surcharge to customer rates of city residents to reimburse Company for the cost of the fee. 1 Subdivision 5. 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 6. Effective Date of Fra.nchise Fee 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. Subdivision 7. Previous Franchise Fee Superseded. This Ordinance supersedes and replaces the previous franchise fee ordinance between City and Xcel Energy, City Ordinance No. 864. Read and passed by the City Council of the City of Cottage Grove this 16th day of July, 2014. Mayor Attest: City Clerk SEAL 2 SCHEDULE A Xcel Enerqy Electric Franchise Fee Schedule The franchise fee shall be in an amount determined by applying the following schedule per customer premise/per month based on metered service to retail customers within the City: Class Fee per Premise Residential $a-6-� $ 0.65 Sm C& I- Non-Dem $�-�� $ 0.65 Sm C& I- Demand $8�� $ 5.25 Large C & I $�-9A $29.00 Public Street Ltg $�9 $ 2.30 Muni Pumping -N/D $9�� $0.00 Muni Pumping - Dem $�� $ 4.25 Franchise fees are to be collected by the Utility at the rate listed below, 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. 3 RESOLUTION NO. 14-xxx RESOLUTION AUTHORIZING PUBLICATION OF ORDINANCE BY TITLE AND SUMMARY WHEREAS, the City of Cottage Grove has adopted Ordinance No. xxx relating to a change in electric franchise fees for the City, WHEREAS, Minnesota Statutes, Section 412.191, Subdivision 4 allows publication of the title and summary in the case of lengthy ordinance, WHEREAS, the following summary would clearly inform the public of the intent of the ordinance. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Cottage Grove, County of Washington, State of Minnesota, that the City Clerk shall cause the following summary of Ordinance No. xxx to be published in the official newspaper in lieu of the entire ordinance: Public Notice The City Council of the City of Cottage Grove has adopted Ordinance No. xxx, providing for the change in franchise fees on electric service. XCEL ENERGY ELECTRIC FRANCHISE FEE SCHEDULE Class Fee per Premise Residential $ 0.65 Small C& I— Non-Dem $ 0.65 Small C& I— Demand $ 5.25 Large C & I $29.00 Public Street Lighting $ 2.30 Muni Pumping—N/D $0.00 Muni Pumping-Demand $ 4.25 The full text of Ordinance No. xxx is available for inspection at the Cottage Grove City Hall during normal business hours. Passed this 16th day of July 2014 Myron Bailey, Mayor Attest: Caron M. Stransky, City Clerk Y o 3000 Maxwell Newport, MN 55055 R E S P 0 N S I B L E B Y N A T U R E� � June 27, 2014 Mr. Ryan Schroeder City Administrator City of Cottage Grove 12800 Ravine Parkway South Cottage Grove, MN 55016 RE: Notice of Implementation of City Requested Facilities Surcharge (CRFS) For East Point Douglas Undergrounding Project and 70 and Keats Undergrounding Project Dear Ryan: The City of Cottage Grove has requested Northern .States Power Company, � doing business as Xcel Energy, to replace existing overhead electric distribution facilities with new underground systems for two projects — one in the vicinity of East Point Douglas Road and the other in the vicinity of 70 Street and Keats � Avenue Xcel Energy has determined that the installation of these Facilifies is "Non- Standard" or "SpeciaP' pursuant to Section 5.3.A.5 and 6(enclosed as Attachment B) of its Electric Rate Book (tarif� on file with the Minnesota Public Utilities Commission (MPUC). The City and Xcel Energy have� mutually agreed � to use the CRFS to recover the excess expenditure associated with these projects. A copy of that agreement is enclosed as Attachment C. Accordingly, � . � Xcel Energy intends to implement a surcharge for the total excess expenditures ! for the Non-Standard Installation of $195,809 ($130,070 for the East Point Douglas project and $65,739 for the 70 and Keats project). Xcel Energy has the authority to impose a surcharge on its electric customers for the actual ! Excess Expenditures (Amount Greater Than Standard Cost) pursuant to 5.3.E.3. ; Xcel Energy previously provided the City with an Engineering Estimate of the � project costs and an opportunity to reimburse Xcel Energy for the Excess Expenditure associated with the Special Facility. Copies of Engineering � Estimates have been included as Attachment A for your reference. Because the i City has agreed to use the CRFS to recover the Excess Expenditure, the Tariff . ; allows �Ccel Energy to recover the Excess Expenditure through a CRFS � applicable to all Xcel Energy retail electric customers within the City. ; ; The NIPUC requires that we provide the City with the proposed notice of I implementation of a CRFS 60 days prior to custome� notification. Xcel Energy i � will be using bill messages (enclosed as Attachment E) to notify our customers in the City beginning September 2014 with collection beginning October 2014. The term of the CRFS is estimated at 15 months. The monthly amount that will appear on customer bills as a CRFS is as follows Customer Class Monthlv Amount Residential $ 1.00 . Residential Low Income $ 1.00 Small C&I Non-Demand $ 1.00 Small C&I Demand $ 3.00 Large C&I $ 4.00 Street Lighting $ 1.00 ' Small Muni Pumping $ 1.00 ' Small Muni Pumping Demand $ 3.00 . Large Muni Pumping Demand $ 4.00 �• Attachment D provides a calculation of the CRFS surcharge by customer class. If you have any questions regarding this Notice, please confact me directly at - (651) 458-1228. Sincerely, � f �c�� `�C��C�-�'� , Jake Sedlacek Manager, Community Relations and Economic Development _ Xcel Energy Cc: Electric Unit Supervisor, Minnesota Department of Commerce Attachment A: Engineering Estimates Attachment B: Xcel Energy MN Electr.ic Rate Book, Rules and Regulations, Section 5.3 and the CRFS rider rate schedule Attachment C: Scoping Estimate Forms Attachment D: Pricing Spreadsheet for Surcharge Calculation Attachment E: Customer Billing Notification 4 1 Attachmenfi A.1 A'�"TACgIlYIENT A SPECIAII FA.CILITIES ENGINEERING ES7CIMATE � � �I This "Engineering Estirnate" provides estimated Excess Expenditures based on an engineered design for a requested or ordered non-s�andard installation (Special Facility). This estimate is only valid fox the specific proj ect informatio� and assumptions as detailed in this form. This Engmeering Es�imate is Xce1 Energy's best evaluation of the Excess Expenditures associated with this Special Facility, However, there will be many factors that influence actual costs, such as: those associated with permitting inclement weather; winter construction costs; unexpected increases in material costs; unexpected increases or changes in labor charges; scheduling, availability, and/or mobilization; ability to schedule outages on the existing electric �acilities of Xcel Energy or other electric � „ companies; emergencies occurring on the electric systems of Xcel Energy or electric companies; and other factors not specifically identified herein but allowed as an incremental cost for recovery. The actual Excess Expenditures will be calculated using Xcel Enexgy's actual costs, including all allowed overheads. R�QUESTOR INFORIV�ATION Requestor Name: Ryan Schroeder City of Cottage Grove Address: 12800 Ravine Parl�way South Cottage Grove, MN 55016 Phone: 651/458-2822 E-mail: rschroeder(a�,cottage-�rove.mn PROJECT, PERMITTING AND SITING INFORMATION � Xcel Energy has relzed on the Project Infoi�nation, Pro�ect Assumptions and Permitting Requirements detailed below to produce this engineering estimate: Attachment A.1 Project Information Name: 70 Street and Keats Avenue Undergrounding Location: 70 Street and Keats Avenue Scope: This project requested by the City of Cottage Grove includes the removal of the existing overhead distribution system by Xcel Energy and replacing it with an equivalent underground distribution system. Praject Asst�:�pticns: This estimate inclucles the costs associated vvith the removal of the existing overhead system and installation of the follou�ing materials: S� new poles, including one overhead disconnect, one ove:rhead switch, three 3-phase terminal poles, and one single phase terminal pole. Also setting one new load breal� center. � Installing 1,800 feet of mainline, 1215 feet of 3-phase distribution, 520 feet o� 1-phase distribution cable will be installed. Removing 1800 feet of overhead pole line. This estimate does not include: Repair and/or replacement of privately- owned sprir�k]er systems; additional costs incurred due to soil conditions (clebris, rock or any other obstruction encountered in �he soil that inerease the cost of installation); additional installation costs due to frost andlor winte� construction charges; repair of customer-owned underground facilities not located prior to construction; replacement of privately-owned shrubbery located in public right-of-way or utility easements; any costs associated with the acquisition of additional right-af-way or easements necessary to install underground facilities. Permittin� Requirements/Siting Issues Xcel Energy has reviewed the permitting requirements and siting issues that may be a factor for this project. These requirements must generally be satisfaetorily resolved prior to starCing any field construction. Afitachmenfi A.1 Ri�ht-of wav and private easements: It will be the responsibility and at the expense of the City to acquire and record any additional easements necessary to accommodate the installation of new underground distribution facilities. Xcel Energy has determined there will be a need for add'ztional utility easements to accommodate the�new underground distribution system. At no cost to Xcel Energy, the City andlor its contractor will provide surveying (as � needed or requested by Xcel Energy) during construction of the overhead to underground system. Conversion of existin� overhead customex's electric service entrance �anels to accept underground se�vice: If applicable, the City will take an active role in notifying all affected residential and commercial customers about the impending changes (and costs) associated with the conversion of their electrical service equipment. AI)DYTIOI�AL INFORMATION '� Because costs increase over time, this Engineering Estimate may be considered valid for sixty (60) days from the date below. Unless otherwise agreed, the Requestor may be asked to prepay for Xcel Energy's costs to prepare any additional ar revised Engineering Estimate necessary because of project scope changes, delays, or othex factoxs beyond the control of Xcel ' Energy. COS'� ESTIlVIATES FOR STAl�TDARD AND SPECIAL �ACILI7CIES AND EXCESS EXPENDITURES Estimate of Standard Facility Costs: $ 78,998.58 Estimate of Non-Standard Facility Costs: $ 146,025,56 Engineering Estimate of Total Excess Expenditures $ 67,026,98 (non-standard costs - standard costs) Minus direct cash payment to Xcel Energy $ Fina1 amount �ar CRFS $ 67,026.98 This estimate expires in 60 days. Attachment � Estimate Prepared by: Sue Gi11e, Electric Design Manager Dated: August 2, 2013 �%,'-� ,��_�- �--__. � � Estimatc ?rcparcd by: c_ � (Signature) Acknowledgement by: City of Cottage Grove Ryan �chroeder, City Administrator 1 r igna re) Dated: � � 2013 '°"� � Attachment A.2 ATTACHMENT A SPIECIr�� FACILITIES ENGINEERING ESTIlVIATE This "Engineering Estimate" provides estimated Excess Expenditures based on an engineexed design for a requested or ordered non-standard installation (Special Facility). This estimate is only valid for the specific p�oject information and assumptions as detailed in this fo��a.. This Engineering Estirnate is Xcel Energy's best evaluation of the Excess ' Expenditures associated with this Special Facility. However, there will be many factors that influence actual costs, such as: those associated with permitting; inclement weather; winter construction costs; unexpected increases in material costs; unexpected increases oar changes in labor charges; scheduling, availability, and/or mobilization; abilxty to schedule outages on the existing electric facilities of Xcel Energy or other electric companies; emergencies occurring on the electric systems of Xcel Energy or electric companies; and other factors not specifically identified herein but allowed as an incremental cost for recovery. The actual Excess Expenditures will be calculated using Xce1 Energy's actual costs, including a11 allowed overheads. R�QUESTOR INFORMATION Requestor Name: Ryan Schroeder City of Cottage Grove Address: 12800 Ravine Parkway South � Cottage Grove, MN 55016 Phone; 651/458-2822 E-mail: rschr.oeder(�a,cotta�e-�rove.mn PROJECT, PERIV�ITTING AND SI7CING IlVFORMATION Xcel Energy has :relied on the Project Information, Project Assumptions and Permitting Requiraments detailed below to produce this engineering estimate : Atfiachment A.2 Project Information Name: East Point Douglas Road Undergrounding Location: East Point Douglas Road Scope: This project requested by the City of Cottage Grove includes the removal of the e�sting overhead distribution system by Xcel Energy and replacing it with an equivalent underground distribution system. Pre�ec� Assu��ons: This estamate includes the costs asJcciated with the xemoval of the existing overhead system and installation of the following materials: 3,100 feet of mainline, 1.,952 feet of 3-phase distribution, 1,965 feet of 1- phase dist�ibution, and l 30 feet of secondary underground cable tivill be installed. Four neur electrical cabinets and three new poles. Consisting of one fused load break center, one non fused load break center, two pad mounted trans�ormers, one three-phase disconnect, one three phase switch, and one three phase terminal po1e. Removal of 4000 feet of overhead pole lines This estimate does not include: Repair and/or replacement of privately- owned sprinkler systems; additional costs incurred due to soil conditions {debris, rock or any other obstruction encountered 'zn the soil that increase the cost of installation); additional installation costs due to frost and/or winter construction charges; repair of customer-owned underground facilities not located prior to construction; replacemen� of privately-owned shrubbery located in public right-of way or utility easements; any costs associated with the acquisition of add'ztional righ or easements necessary to install underground facilities. Permittin� Requirements/Siting Issues Xcel Energy has reviewed the permitting requirements and siting issues that may be a factor for this project. These requirements must generally be satisfactorily resolved prior to starting any field construction. Attachment A.2 Ri t-of wav and private easements; It will be the responsibility and at the expense of the City to acyuire and record any additional easements mecessary to accommodate the installation of new underground distribution fac'rlities. - Xcel Energy has determined there will be a need for addational utility easements to accommodate the new underground distribution system, At no , cost to Xce1 Energy, the City and/or its contractor will provide surveying (as � needed or requested by Xcel Energy) during construction of the overhead to underground system. Conversion of existin� overhead customer's electric service entrance panels to accept unde:r�round service: �f applicable, the City will take an actzve role in notifying all affected residential and commercial customers about the impending changes (and costs} associated with the conversion of'their electrical service equipment. ADDTTIONAL INFORMATION Because costs increase over tixne, this Engineering Estimate may be considered valid for sixty (60) days from the date below. Unless otherwise agreed, the Requestor may be asked to prepay for Xcel Energy's costs to prepare any additional or revised Engineering Estimate necessary because of project scope changes, delays, or other factors beyond the control of Xcel Energy. � COST ES7CyMA�'ES FOR STANI)ARD AliTI3 SPECIr�L FACILITIES .AND EXCESS EXPENDITURES Estimate of Standard Facility Costs: $ 60,021.68 Estilnate of Non-Standard Facility Costs: $ 224,669.21 Engineering Estimate of Total Excess Expenditures $ 164,b47.53 (non-standard costs - standard costs) Minus direct cash. payment to Xcel Energy $ Final amount for CRFS $ 164,647.53 �hys es�i�aie e�pi�es in 60 days. Attachment A.2 Estimate Prepared by. Susan Gi11e, Electric Design Manager Dated: August 2, 2013 ; 9 � f� � � �.�� .. � Estimate Prepared by: °�----� �' - �� (Signature) Acknowledgement by: City of Cottage Grove Ryan Schroeder, City Administrator �� Signat re Dated: �s��, 2013 Attachment B Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK — MPUC NO. 2 CITY REQUESTED FACILITIES SURCHARGE RIDER Section No. 5 5th Revised Sheet No. 131 APPLICABILITY Applicable to bills for electric service provided under the Company's retail rate schedules in a City ordering the installation of non-standard underground Distribution Facilities. The Excess Expenditure costs for these Speciai , Facilities are to be collected from customers located within such City in accordance with the provisions in the General � Rules and Regulations, Section 5.3, SPECIAL FACILITIES. � The Company will provide notice to the affected City of any miscellaneous rate filing by Company under Minn. Stat. §216.616, Subd. 1 to establish a Special Facilities surcharge applicable to customers in such City. RATE In each applicable City, there shall be included in the monthly minimum billing on each customer's bill a separately itemized surcharge line item determined in accordance with this Rider entitled "City Req Fac Srchg". The City Requested Special Facilities Surcharge shall not be subject to current month billing adjustments or City surcharges and shall be subject to any appiicable sales taxes. DETERMINATION OF CITY REQUESTED FACILITIES SURCHARGE The City Requested Special Facilities Surcharge for each applicable City project shall be calculated by determining a Class Facilities Surcharge to be applied to the Average Monthly Customers in the designated City such that the total Excess Expenditure plus carrying charges in the City Project Tracker Account are recovered over the designated Recovery Period. Averaqe Monthlv Customers shall be the projected average number of active customers in each applicable customer classification located in the City for the designated Recovery Period. Class Facilities Surcharqe shall be the surcharge amount for each applicable customer classification determined in accordance with the Rules for Application. Citv Proiect Tracker Account is a regulatory asset account representing the sum of the following: � (1) The total Excess Expenditures for each Distribution Facilities undergrounding project in such City, (2) Monthly carrying charges on the under recovered or over recovered monthly balance in the City Project Tracker Account based on the overall rate of return from the Company's most recent electric general rate case decision, (3) Less the recovered project costs collected to date through the applicable City's Facilities Surcharge. Recovery Period is the number of months the City Requested Special Facilities Surcharge shall be applied to bills for a designated City project determined in accordance with the Rules for Application. Excess Expenditures shall be determined in accordance with the provisions in the General Rules and Regulations, Section 5.3. (Continued on Sheet No. 5-132) Date Filed: 11-02-12 By: David M. Sparby Effective Date: 12-01-13 President and CEO of Northern States Power Company, a Minnesota corporation Docket No. E002/GR-12-961 Order Date: 09-03-13 S:\General-Offices-GO-01\PSFIRA\Rates\Current\Mn elec\Me 5 131 r05.doc Attachment B Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK — MPUC NO. 2 CITY REQUESTED FACILITIES SURCHARGE RIDER Section No. 5 (Continued) 4th Revised Sheet No. 132 RULES FOR APPLICATION 1. The Recovery Period shall not commence until the City Requested Facilities Surcharge to be applied to bills is at least $0.25 per customer per month. A surcharge of $0.25 up to and including $1.00 per customer regardless of customer class may be applied for a Recovery Period of exactly one month (e.g., a one-time surcharge). 2. For a Recovery Period greater than one month, the Class Facilities Surcharge per month per customer in each non-residential customer class for any month in which a Residential Class Facilities Surcharge is applicable shall be as follows: a. Commercial & Industrial (C&I), Street Lighting and Municipal — Non-Demand Billed: Equal to the Residential Class Facilities Surcharge. b. Small C&I and Small Municipal — Demand Billed: Three times the Residential Class Facilities Surcharge. c. Large C&I — Demand Bilied (actual demand greater than 100 kV�: Four times the Residential Class Facilities Surcharge. However, whenever the Non-residential Class Facilities Surcharges to be billed exceed the Customer Charge applicable on a customer account, the Class Facilities Surcharge for that account shail be equal to such Customer Charge. 3. A Residential Class Facilities Surcharge of $0.25 up to and including $1.00 per Residential customer per month will be applied each month whenever the City Project Tracker Account balance to be collected allows for a Recovery Period of 36 months or less. 4. A Residential Class Facilities Surcharge of over $1.00, up to and including $5.00, per Residential customer per month will be applied each month for a Recovery Period of 36 months whenever the City Project Tracker Account balance is uncollectable at a Residential Class Facilities Surcharge level of $1.00 or less, provided that the surcharge amount for any Residential class customer account receiving a Low Income Energy Discount shall not exceed $1.00 per month. 5. A Residential Class Facilities Surcharge of $5.00 per Residential customer per month for a Recovery Period of 36 months up to and including 60 months will be applied only when necessary to recover the City Project Tracker Account balance, provided a surcharge of $5.00 may be collected pending Commission action on a Company petition or City complaint to modify the design of the rate surcharge for a specific project which cannot be recovered in 60 months. (Continued on Sheet No. 5-133) Date Filed: 11-02-12 By: David M. Sparby Effective Date: 12-01-13 President and CEO of Northern States Power Company, a Minnesota corporation Docket No. E002/GR-12-961 Order Date: 09-03-13 S:\G ene ral-Offices-GO-01 \PS F\RA\Rates\Current\M n_elec\M e_5_132_r04. doc Attachment B Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK — MPUC NO. 2 CITY REQUESTED FACILITIES SURCHARGE RIDER Section No. 5 (Continued) 4th Revised Sheet No. 133 RULES FOR APPLICATION (Continued) 6. The Class Facilities Surcharges may be adjusted annually and in the last 6 months of the Recovery Period to more closely recover the balance remaining in the City Project Tracker Account. 7. Subject to the limits on monthly surcharge amounts set forth above, the Class Facilities Surcharges may also be increased at any time and the Recovery Period may be updated, with notice as provided in Section 5.3 of the General Rules and Regulations, in order to recover Excess Expenditures associated with additional Distribution Facilities undergrounding projects requested or ordered by City. I Date Filed: 11-02-12 By: David M. Sparby Effective Date: 12-01-13 President and CEO of Northern States Power Company, a Minnesota corporation Docket No. E002/GR-12-961 Order Date: 09-03-13 S:\General-Offices-GO-01\PSF�RA\Rates\Current\Mn elec\Me 5 133 r04.doc Attachment B Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 GENERAL RULES AND REGULATIONS (Continued) Section No. 6 3rd Revised Sheet No. 27 5.2 GENERAL EXTENSION (Continued) Non-refundable payments will be in the amount determined by subtracting from the total estimated installation cost the product of three and one half (3.5) times the anticipated annual revenue, exciuding the portion of the revenue T representing fuel-cost recovery, as set forth in Section 5.1, STANDARD INSTALLATION. Additional refundable payments may be required where service is extended and where customer occupancy is expected to be delayed. In such cases, for each additional customer served directly from the original contracted extension within five years from the date of its completion, the person who made the advance payment will receive proportionate refunds as additional T customers take occupancy. The total of such refunds will in no event exceed the total refundable advance payment. Refunds will be made only for line extensions on private property to a single customer served directly from the original contracted facilities. 5.3 SPECIAL FACILITIES A. Definitions For the purposes of Section 5.3 and the City Requested Facilities Surcharge Rider, the following definitions apply: 1. "Distribution Facilities" are defined as all primary and secondary voltage wires, poles, insulators, transformers, fixtures, cables, trenches, ductlines, and other associated accessories and equipment, including substation equipment, rated 35kV class and below, whose express function and purpose is for the distribution of electrical power from the Company's distribution substation directly to residential, commercial, and/or industrial customers. Distribution Facilities exclude all facilities used primarily for the purpose of transferring electricity from a generator to a substation and/or from one substation to another substation. As such, Distribution Facilities serve only customers on the primary and secondary rates of the Company. 2. "Transmission Facilities" are defined as all poles, towers, wires, insulators, transformers, fixtures, cables, and other associated structures, accessories and equipment, including substation equipment, rated 25kV class and above, whose express function and purpose is the transmission of electricity from a generator to a substation or substations, and from one substation to another. 3. "Municipality" is defined as any one of the following entities: a county, a city, a township or other unit of local government. T 4. "City" is defined as either a statutory city or a home rule charter city consistent with Minn. Stat. §410.015 T and §216B.02, Subd. 9. (Continued on Sheet No. 6-27.1) Date Filed: 08-11-10 By: Judy M. Poferl Effective Date: 05-02-11 President and CEO of Northern States Power Company, a Minnesota corporation Docket No. E002/M-10-878 Order Date: 05-02-11 S:\General-Offices-GO-01\PSF\RA\Rates\CurrentlMn elec\Me 6 27 r03.doc . Attachrnent B Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcei Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK — MPUC NO. 2 GENERAL RULES AND REGULATIONS (Continued) Section No. 6 Original Sheet No. 27.1 5.3 SPECIAL FACILITIES (Continued) A. Definitions (Continued) 5. "Standard Facilities" are those facilities whose design or location constitute the reasonable and prudent, least-cost alternative that is consistent with the existing electric system configuration, will meet the needs of the Company's customers and will maintain system reliability and performance under the circumstances. In � determining the design or location of a"Standard Facility", the Company shall use good utility practices and evaluate all of the circumstances surrounding the proposal, including (i) pubiic and employee safety in the installation, operation and maintenance of the facility, (ii) compliance with the National Electrical Safety Code, other applicable engineering standards and electric utility norms and standards, (iii) electric system reliability requirements, (iv) the presence, age, condition and configuration of existing facilities in the affected ', area, (v) the presence and size of existing right-of-way in the affected area, (vi) existing topology, soil, ', spacing, and any environmental limitations in the specific area, (vii) existing and reasonably projected ' development in the affected area, (viii) installation, maintenance, useful life and replacement cost factors, and (ix) other relevant factors under the particular circumstances. 6. "Special Facilities" are non-standard facilities or the non-standard design or location of facilities as provided in Section 5.3(B). 7. "Excess Expenditure" is defined as the totai reasonable incremental cost for construction of Special Facilities, including: the value of the un-depreciated life of existing facilities being removed and removal costs less salvage; the fully allocated incremental labor costs for design, surveying, engineering, construction, administration, operations or any other activity associated with said project; the incremental easement or other land costs incurred by the Company; the incremental costs of immediately required changes to associated electric facilities, including backup facilities, to ensure reliability, structural integrity and operational integrity of electric system; the incremental taxes associated with requested or ordered Special Facilities; the incremental cost represented by accelerated replacement cost if the Special Facility has a materially shorter life expectancy than the standard installation; the incremental material cost for all items associated with said construction, less salvage value of removed facilities, and any other prudent costs incurred by Company directly related to the applicable Special Facilities. (Continued on Sheet No. 6-27.2) Date Filed: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company Docket No. E002/GR-05-1428 Order Date: 09-01-06 S:\General-O�ces-GO-01\PSF\RA\Rates\Current\Mn elec\Me 6 27-1 r01.doc Attachrnent B Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK— MPUC NO. 2 GENERAL RULES AND REGULATIONS (Continued) Section No. 6 Original Sheet No. 27.2 5.3 SPECIAL FACILITIES (Continued) B. General Rule 1. When the Company is requested by a customer, group of customers, developer, or Municipality to provide types of service that result in an expenditure in excess of the Company designated standard service installation as provided under Section 5.1, STANDARD INSTALLATION, or designated standard Distribution Facilities or Transmission Facilities under Section 5.3 (A)(5) the requesting customer, group of customers, developer, or Municipality will be responsible for such Excess Expenditure, unless otherwise required by law. Common exampies of Special Facilities include duplicate service facilities, special switching equipment, special service voltage, three phase service where single phase service is adequate, excess capacity, capacity for intermittent equipment, trailer park distribution systems, underground installations to wood poles, conversion from overhead to underground service, specific area undergrounding, other special undergrounding, location and relocation or replacement of existing Company facilities. 2. When requested under Section 5.3 (B)(1) the Company wiil evaluate the circumstances and determine the Standard Facility(ies) that would be appropriate to the particular situation. From this evaluation, the Company will determine the facilities design/configuration for the proposed project that meets the definition of a Standard Facility. This design/configuration shall constitute the Standard Facility for purposes of determining the Excess Expenditure associated with any requested or ordered Special Facility, including a Special Facility subject to a City Requested Facilities Surcharge or other rate surcharge. 3. Subject to the requirements of applicable law, and subject to the Company's previously scheduled or emergency work, the Company will initially install Special Facilities or will replace, modify or relocate to a Company-approved location or route its existing Distribution Facilities or Transmission Facilities (a) upon the request of a customer, a group of customers, developer, or upon request or lawful order of a Municipality if the Company determines the requested or ordered Special Facilities will not adversely affect the reliability, structural integrity, ability to efficiently expand capacity or operational integrity of the Company's Distribution Facilities or Transmission Facilities; and (b) the requesting or ordering customer, group of customers, developer, or Municipality arranges for payment of the Excess Expenditures under Section 5.3(E)(1) or 5.3(E)(2), or a requesting or ordering City elects that the Excess Expenditures for undergrounding of Distribution Facilities be recovered by surcharge under Section 5.3(E)(3). (Continued on Sheet No. 6-28) Date Filed: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company Docket No. E002/GR-05-1428 Order Date: 09-01-06 S:\General-Offices-GO-01 \PSF\RA\Rates\Current\Mn_elec\Me_6_27-2.doc Attachment B Northern States Power Company, a Minnesota corporation and whoily owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK — MPUC NO. 2 GENERAL RULES AND REGULATIONS (Continued) Section No. 6 1st Revised Sheet No. 28 5.3 SPECIAL FACILITIES (Continued) C. Special Facilities In Public Riqht-Of-Wav 1. Whenever a Municipality as a governing body of public right-of-way orders or requests the Company to replace, modify or relocate its existing Distribution Facilities or Transmission Facilities located by permit in said public right-of-way to the extent necessary to avoid interference with construction on said public right-of-way, such facilities will be replaced, modified or relocated at Company expense, provided the construction is the Standard Facility(ies) installation designated by the Company. 2. If the Municipality requests or orders a facility other than the standard facility(ies) determined under 5.3(C)(1), the Company will provide the Municipality notification of the Excess Expenditure compared to the Standard Facility. If the Municipality requests or orders a type of construction with cost in excess of the Company designated standard construction, recovery of such Excess Expenditures will be subject to Section 5.3(E). 3. Except in emergencies, the Company has no obligation to commence initial construction of new Special Facilities, or to commence construction for replacement, modification, reconstruction or relocation of I existing facilities, until the Company receives a permit, or other written authorization, from the � Municipality (or its designee) having jurisdiction over use of the applicable public right-of-way, authorizing the construction at a Company-approved reasonable location within the public right-of-way or at a location established by lawful order of the Municipality. 4. The Company reserves the right to require an order from a Municipality if the Company determines the requested Special Facilities constitute an improvement primarily for the benefit of a landowner or other group and only an incidental benefit to public use of the right-of-way. The Company also reserves the right to challenge the lawfulness of a Municipality's order. D. Underqround Facilities Requirements The following provisions apply when replacing overhead facilities with underground facilities: 1. The customer, at customer's expense, must engage an electrician to adapt the customer's electrical facilities to accept service from Company underground facilities. 2. The Company wili allow reasonable time for the customer to make the necessary alterations to their facilities, before removal of the existing overhead facilities. The customer, group of customers, developer or Municipality must provide Company reasonabie notice of the undergrounding request so Company may efficiently plan and install such facilities. (Cont on Sheet No. 6-29) Date Filed: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company Docket No. E002/GR-05-1428 Order Date: 09-01-06 S:\General-Offices-GO-01\PSF\RA\Rates\Current\Mn eleclMe 6 28 r02.doc Attachment B Northern States Power Company, a Minnesota corporation and wholly owned subsidiary ofXcei Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK — MPUC NO. 2 GENERAL RULES AND REGULATIONS (Continued) Section No. 6 1st Revised Sheet No. 29 5.3 SPECIAL FACILITIES (Continued) D. Underqround Facilities Requirements (Continued) 3. Perpetual easements will be granted Company at no cost to the Company whenever any portion of the underground distribution system is located on private land. Said private easements also will allow the Company access for inspection, maintenance, and repair of Company facilities. 4. The Company must receive, by franchise or permit, full access to its facilities installed underground for the purpose of inspection, maintenance, and repair of such facilities, such right of access to include the right to open public ways. 5. The Municipality will give sufficient notice and will ailow the Company sufficient time to place its facilities beneath public ways while the same are torn up for resurfacing. The Municipality shall provide Company with access to the torn up public ways during such period so that Company will have unobstructed use of sufficiently large sections of the public ways to allow installation of the underground facilities in an economic manner. 6. Secondary voltage service supplied from an underground distribution lateral installation will require that the customer install, own, and maintain necessary conduits and secondary service conductors or bus duct to a point designated by Company within or adjacent to the secondary compartment of the transformer or vault. Company will make final connection of customer's secondary service conductors or bus duct to Company's facilities. 7. Secondary voltage service supplied from underground secondary service conductors require that the customer install, own, or maintain necessary conduits on private property to a point designated by the Company at or near the property line. The secondary service conductors usually will be installed by the customer in the customer's conduit, however, in some installations it may be preferred to have Company provide a continuous installation from the Company facilities through the customer conduit to the customer's service equipment. In these installations the customer must pay the total installed cost of the Company's cable installed on private property. The Company will make the final connection of customer's secondary service connectors to Company's facilities. 8. The customer, group of customers, developer or Municipality will be subject to any charges imposed as a resuit of the conditions set forth in Section 5.1, STANDARD INSTALLATION and charges for Special Facilities as provided in this Section 5.3. (Continued on Sheet No. 6-29.1) Date Filed: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company Docket No. E002/GR-05-1428 Order Date: 09-01-06 S:\General-Offices-GO-01 \PSF\RA\Rates\Current\Mn_elec\Me_6_29_r01.doc Attachment B Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK — MPUC NO. 2 GENERA� RULES AND REGULATIONS (Continued) Section No. 6 1st Revised Sheet No. 29.1 5.3 SPECIAL FACILITIES (Continued) E. Special Facilities Pavments 1. Where the requesting or ordering party is required to prepay or agrees to prepay or arrange payment for Special Facilities, the requesting or ordering party shall execute an agreement or service form pertaining to the installation, operation and maintenance, and payment of the Special Facilities. Payments required will be made on a non-refundable basis and may be required in advance of construction unless other arrangements are agreed to in writing by the Company. The facilities installed by the Company shall be ' the property of the Company. Any payment by a requesting or ordering party shall not change the Company's ownership interest or rights. Payment for Speciai Facilities may be required by either, or a combination, of the following methods as prescribed by the Company: a single charge for the costs incurred or to be incurred by the Company due to such a special installation or a monthly charge being one-twelfth of Company's annual fixed costs necessary to provide such a special installation. The monthly charge will be discontinued if the special facilities are removed or if the requester eventually qualifies for the originally requested Special Facilities. 2. Where Special Facilities are requested or ordered by a Municipality which is not a City, or in circumstances other than those addressed in Section 5.3(E)(3), and payment is not made or arranged by the Municipality, the Company may seek approval of the Commission to allow the Excess Expenditures to be the responsibility of the Company's customers residing within the Municipality and may seek approval by the Commission pursuant to Minn. Stat. §216B to allow recovery of such T expenditures from those customers through a rate surcharge or other method. The Company will provide notice to an affected Municipality of any miscellaneous rate filing by Company T under Minn. Stat. §2166.16, Subd. 1, to establish a Special Facilities surcharge applicable to customers T in such Municipality. Customers in the applicable Municipality will be notified of (a) the implementation T of the Special Facilities surcharge through a bill message during the month preceding the month of T implementation of such surcharge, and (b) any change in the surcharge. (Continued on Sheet No. 6-29.2) Date Filed: 08-11-10 By: Judy M. Poferl Effective Date: 05-02-11 President and CEO of Northern States Power Company, a Minnesota corporation Docket No. E002/M-10-878 Order Date: 05-02-11 S:\General-Offices-GO-01\PSFIRA\Rates\CurrenflMn eleclMe 6 29-1 r0l.doc Attachrnent B Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK— MPUC NO. 2 GENERAL RULES AND REGULATIONS (Continued) Section No. 6 2nd Revised Sheet No. 29.2 SPECIAL FACILITIES (Continued) E. Special Facilities Pavments (Continued) 3. Where undergrounding of Distribution Facilities as a Special Facility is ordered by a City, and payment for excess expenditure is not made or arranged by the City, the Excess Expenditures will be recovered from the Company's customers located in the City through a rate surcharge set forth in Section 5.3 (F) and the City Requested Facilities Surcharge Rider subject to the following conditions: a. The Company shall provide written notice to the City containing the following: i. the estimated total excess expenditures required for the designated City undergrounding project and an estimate of the resulting surcharge; ii. notice to the City Cierk that the City has sixty (60) days from its receipt of the notice to file with the Commission an objection to the proposed surcharge under Minn. Stat. §216B.17 or other applicable law. The notice shall contain T a brief statement of facts and tariff or other legal authority on which the Company bases its right to surcharge the ratepayers located in the City. b. Within the sixty (60) day period noticed by the Company, the City may give written notice to the Company of its intention to pay all, a portion or none of the estimated Excess Expenditures, or otherwise enter into an agreement with the Company regarding payment of any Excess Expenditures. If the City does not respond in writing within the sixty (60) days, it is deemed to have elected not to pay any portion of the Excess Expenditures and will have waived its right to object to the Company's right to surcharge ratepayers in the City for the Excess Expenditures. Such failure, however, is not a waiver of the City's right to object to the Company's Excess Expenditures surcharged to ratepayers in the City, which objection may be exercised pursuant to other applicable law. c. A rate surcharge set forth in Section 5.3(F) and the City Requested Facilities Surcharge Rider may be used to recover the excess Expenditures of Distribution Facilities when such projects are initiated and controlled by a City even if the City does not act within its police powers to require the T undergrounding project to be completed and the City and Company mutually agree in writing to using such a surcharge. (Continued on Sheet No. 6-29.3) Date Filed: 08-11-10 By: Judy M. Poferl Effective Date: 05-02-11 President and CEO of Northern States Power Company, a Minnesota corporation Docket No. E002/M-10-878 Order Date: 05-02-11 S:\General-Offices-GO-01\PSF\RA\Rates\Current\Mn elec\Me 6 29-2 r02.doc Attachment B Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK — MPUC NO. 2 GENERAL RULES AND REGULATIONS (Continued) Section No. 6 2nd Revised Sheet No. 29.3 SPECIAL FACILITIES (Continued) E. Special Facilities Pavments (Continued) d. The City may bring its objection to the proposed surcharge to the Commission by filing a statement of objection with the Commission and serving the Company within sixty (60) days. An objection proceeding shall not halt or delay the project, except for good cause shown. Notice and implementation of the surcharge shall be stayed until the Commission or a court of competent jurisdiction issues a final order or judgment. e. Nothing in this tariff is intended to establish or limit the rights of a Company customer that is a member of the class of customers surcharged or proposed to be surcharged from pursuing its , rights under applicable law. ', f. Customers in the applicable City wili be notified of: (i) the implementation of a City Requested l i Facilities Surcharge through a bill message during the month preceding the month the T surcharge is commenced; and (ii) any change in a preexisting surcharge. The Company shall provide the Department and City the proposed notice to customers no less than sixty (60) days prior to the first day of the month in which the Company intends to notify customers of the surcharge. (Continued on Sheet No. 6-29.4) Date Filed: 08-11-10 By: Judy M. Poferl Effective Date: 05-02-11 President and CEO of Northern States Power Company, a Minnesota corporation Docket No. E002/M-10-878 Order Date: 05-02-11 S:\General-Offices-GO-01\PSF�RA\Rates\Current\Mn eleclMe 6 293 r02.doc Attachment B Northern States Power Company, a Minnesota corporation and wholiy owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK — MPUC NO. 2 GENERAL RULES AND REGULATIONS (Continued) Section No. 6 Original Sheet No. 29.4 SPECIAL FACILITIES (Continued) F. Costs of Special Facilities Recovered bv City Requested Facilities Surcharqe 1. The Excess Expenditure required for any Special Facility undergrounding of Distribution Facilities requested or ordered by a City shall be subject to surcharge in accordance with the provisions of this section and the City Requested Facilities Surcharge (CRFS) Rider, if the City does not prepay or otherwise arrange payment. The surcharge shail commence on such date as determined by the Company, but no earlier than the first full billing month following at least 60 days notice to the applicable City of the planned implementation date of a surcharge. 2. City Project Tracker Account. The Company will establish a City Project Tracker Account for the applicable City in order to track project cost recovery through customer collections. The initial balance in the Tracker Account will be the Company-determined Excess Expenditure for the applicable Special Facilities. Excess Expenditures for subsequent, additional City requested or ordered Special Facilities may be added to the Tracker Account balance at any time to the extent additional Excess Expenditures are incurred by Company. The Tracker Account balance shall be determined as follows: a. The total Excess Expenditure ("EE") for each City Special Facility undergrounding project to be recovered through a CRFS surcharge. The EE will be adjusted to reflect actual Company costs and any direct payments made by the City for the designated construction project; b. Plus the Carrying Charge ("CC") on the unrecovered or over-recovered monthly balance in the Tracker Account based on the overall rate of return from the Company's most recent electric general rate case decision; and c. Less the Recovered Project Costs ("RPC") equal to the actual monthly amounts billed to customers in the applicable city through the CRFS Rider, subject to subsequent reductions to account for uncollectibles, refunds and correction of erroneous billings. (Continued on Sheet No. 6-29.5) Date Filed: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company Docket No. E002/GR-05-1428 Order Date: 09-01-06 S:\General-O�ces-GO-01\PSF\RA\Rates\Current\Mn elec\Me 6 29-4.doc Attachment B Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK — MPUC N0. 2 GENERAL RULES AND REGULATIONS (Continued) Section No. 6 1st Revised Sheet No. 29.5 SPECIAL FACILITIES (Continued) F. Costs of Special Facilities Recovered bv Citv Requested Facilities Surcharqe (Continued) 3. The Company may delay implementation of a surcharge for a City Project Tracker Account until the minimum surcharge amount provided in the CRFS Rider is reached. 4. Any under or over recovery will be determined by the Tracker Account balance in the last month of the T final Recovery Period. Any under recovery will be expensed. The Company will limit over-recoveries to T no more than $1.00 per customer or $10,000 per City at the time the Tracker Account is terminated. N Any over recovery above the limit will be maintained in a Company liability account for no more than two (2) years following the Recovery Period and applied as follows: a. The over recovery will be credited to the Tracker Account balance for subsequent, additional City requested or ordered Special Facilities, or b. If the City does not use the CRFS process within two (2) years, the Company will refund the over recovered amount to current customers of the City according to their billed surcharge amounts, plus interest per Minn. R. 7825.3300, Methods and Procedures for Refunding. Interest will be calculated at the average prime rate. N 5. Record Access and Reporting Requirements. The Company's records associated with a City's Tracker T Account shall be available for inspection by such City at reasonable times. If requested by a City, the Company shall provide a report on the status and balance of the City Project Tracker Account as follows: a. whenever Excess Expenditures for requested or ordered Distribution Facilities undergrounding are added to the Tracker Account for a designated or new City project, b. on or before the last business day of the month following the final month of the Recovery Period, or c. annually if the Recovery Period is greater than 12 months. 6. The surcharge for a particular Special Facility Distribution Facilities undergrounding project may be of a different design than set forth in the City Requested Facilities Surcharge Rider if approved in advance T by Commission order in response to a rate filing by the Company under Minn. Stat. §216B.16, or in response to a complaint filed by the applicable City under Minn. Stat. §216B.17. T T Date Filed: 08-11-10 By: Judy M. Poferl Effective Date: 05-02-11 President and CEO of Northern States Power Company, a Minnesota corporation Docket No. E002/M-10-878 Order Date: 05-02-11 S:\General-Offices-GO-01\PSF\RA\Rates\Current\Mn elec\Me 6 29-5 r01.doc Attachment C-1 Enerqy� TM 1700 East County Road E R E 5 P 0 N S 1 B C E B Y N A T U R E White Bear Lake, Minnesota 55110-4658 � ,! May 22, 2013 Mr. Ryan Schroeder City Administrator City of Cottage Grove 12800 Ravine Parkway South � Coftage Grove, MN 55016 Re: City Request For Information on Potential Special Facilities Project East Point Douglas Road Undergrounding Project Your City has requested information fram Northern States Power Company, a Minnesota corporation ("Xcel Energy" or the "Company") regarding a potential undergrounding project along East Point Douglas Road. Based on our understanding of this potential project and our experience with similar projects, we believe that this may be a"special facilities" project. Section 5.3 of the rules and . regulations of our Minnesota Electric Rate Book (tarif� contains the definition of standard and "special facilities". To determine if this is a"special facilities" project we need to complete a scoping estimate. Attachment A is a"Scoping Estimate" form. A scoping estimate is a broad based estimate of the project cost; it is not a definitive project cost estimate or a cost guarantee. Please review the project information on the Scoping Estimate farm. Include any additional information necessary to clearly and accurately define the proposed project and any City-imposed conditions or requirements. Please sign and return the Scoping Estimate form to us, as indicated at Step 2 of the • form. Xcel Energy will then provide you with the completed Scoping Estimate of the project's estimated cost and a determination as to whether this is a"special facilities" project. . . The Xcei Energy tariff aflows Xcel Energy to recover or seek recovery of any excess expenditure associated with a special facility. The available me#hods of cost' recovery depend on several factors. For example, if the project is distribution faciliry undergrounding ordered by a city, the cost recovery procedures in our City Requested Facilities Surcharge ("CRFS") Rider may apply (see Aftachment B). The CRFS May also apply if a City requests undergrounding and agrees to use the CRFS. This is a Minnesota Public Utilities Commission ("MPUC") approved automatic surcharge on electric customers within your City only. If the "special faciiity" does not involve the undergrounding of a distribution facility pursuant to a City's police powers, or if the City and Xcel Energy do not mutually agree to use the CRFS to recover the excess expenditures for a distribution undergrounding project, use of a surcharge to recover excess expendifures requires a specific filing and approval by the MPUC. The City can also choose to prepay or to otherwise arrange for payment of the excess expenditures for special facilifies. Attachment C explains how we wili notify you if we attempt to recover the excess expenditures through the CRFS Rider. Please note that your City has the right to challenge; (1) Xcel Energy's determination that a surcharge is authorized; (2) the amount of the surcharge; and (3) whether the surcharge is . recovered from Xcel Energy's customers in your City only. Attachrnent C-1 Next Steas After you review and return the signed Scoping Estimate form, Xcel Energy will send you the completed scoping estimate, along with more specific information related to the potential use of the CRFS Rider for recovery of excess expenditures of an undergrounding of a distribution line or other speciai facilities project. Upon receiving this information, the Cify can assess its interests and options � and decide how to proceed. If you have any questions, please feel free to contact me directly at 651/458-1228. Sincerely, olette Jurek • Community Relafo s Manager colette.c. jurek@xcelenergy.com Cc: Jennifer Levitt, City Engineer ' Sue Gille, Xcel Energy Electric Design Manager Attachment A: Project Scoping Estimate F'orm Attachment B; Xcel Energy MN Electric f2ate Book, Rules and Regulations, Secfion 5,3 and the CRFS rider rate schedule. ' Attachment C: Flowchart of Notification Steps For CRFS Implementation ' Attachrnent C-1 ATTACI3MENT A SCOPING ESTIMATE East Point Douglas Road A"Scoping Estimate" is provided by Xcel Energy for the convenience of the entity ordering or requesting the project. This approximation is our initial assessment of the costs associated with an ordered or requested project. The Scoping Estimate is generally based on our previous experience with comparable projects and uses histoxical cost data. This estimate, therefore, is only a"ballparlc" estimate of the costs associated with this project. The actual costs may be higher ox lower. We use the Scoping Estimate to determine whether the installation requested rnay constitute a"special facility." This estimate normally precedes our moxe refined Engineering Estimate. STEP 1: CHAR.ACTERIZATION OF PROPOSED PROJECT (TO BE COMPLETED BY XCEL ENERGY) Requestor Name; City of Cottage Grove/Ryan Schroeder, City Administrator Address: 12800 Ravina Parkway South Cottage Grove, MN 55016 Telephone: 651 /45 8 -2 800 E-mail: rschroeder@cottage-grove.org Proiect Information. Description of the type of project requested, its proposed location and the reason for the request: City of Cottage Grove has requested an undergrounding estimate regarding plans to underground distribution facilitiea along East Point Douglas Road. The proj ect requested by the City of Cattage Grove includes removal of the existing overhead electric distribution system and replacing that system with a new underground electl7c distribution system. Project Assumptions Include any additional conditions or assumptions regarding the project description that may impact cost. Identify taslcs that are Xcel Energy's responsibility and tasl�s that are the Requestor's responsibility. City of Cottage Grove is interested in burying overhead distribution lines wherever feasible along this stretch of roadway. Xcel Energy will replace the existing overhead distribution system wi�h a new underground distribution system that will result in providing Xcel �nergy the equivalent operating characteristics and system reliability as the system we are being aslced to replace. This project is pxoposed to be installed in the existing and/or newly acquired road right-of-way. If additional easements are necessary to accommadate the installation of the new underground distribution facilities, those costs will be added to this project and will be the responsibility of the City. Page 1 of 5 Attachment C-1 The surcharge amount will reflect actual, not estimated, project costs, Xcel Energy responsibilities: Letters to affected customers Permit applica�ions to appropriate bodies Infoi7n City of suggested equipment pad locations (Xcel Energy will not acquire easements) City of Cottage Grove Ground restoration responsibilities: Communication/coordination with other utilities of ' existing or new facilities. �' Easement acquisition Street light replacements Surveying along entire project as xequired by Xcel Energy for their buried facilities, The city will be required to worlc with existing overhead service customers impacted by this project to convert thei�• electric service from overhead to underground at no cost to Xcel Energy. This may include the acquisition of easements and/or additional right-of- way necessary for new surface mounted equipment such as t�ansformers, pedestals, underground cable, switching ec�uipment, etc. Any additional right-of waq or easement acquisition not related to a customer's electric service conversion that is necessary for the installation of new surface mounted equipment is also the responsibility of the City. The City will also be responsible for the cost of removal or any privately-owned electric circuits attached to existing Xcel Energy poles prior• to their removal. Joint responsibzlities: communication wzth property owners along the proposed route project scheduling The estimate does NOT include the following: • • underground sprinlclez system repair and/or replacement; • possible additional costs incuu7ed due to soil conditions that might impair the installation of underground facilities such as rocic formations; • delay time for Xcel Energy cxaws as the result of actions or decisions made by the City or other parties; • relocation of night watch lights; • repair and/or replacement of customer-owned underground facilities not exposed at tha time service is installed; and • any streetl'rght improvements and/or additions. • easements � restoration • additional costs due to f'rost and/or winter construction charges • replacement of privately-owned shrubbexy located in public right-of-way (existing or new) or easement areas (existing or new) where necessary to install uiiderground facilities Page 2 of S Attachment C-1 Transfer of Customers to Underground Service Xcel Energy has no authority to compel customers to transfer to underground service. Property owners must voluntarily agree to convert to underground electric service. It is our understanding that the City will ba responsible for the conversion coordination and the payznent of underground electric service conversion costs for the residential customers along East Point Douglas Road. The conversion work will need to be completed by a private electrical contractor and those costs are not included in this estimate. We recommend that the City contract with one electrical company to complete the conversion worlc for this project. Please be advised that our residential undarground service rate is an additional $2.00 per month per customer on an on-going basis. Date: 5/22/13 Xcel Energy Prepaxer Name: Colette Jurelc Signature: �%� �ti G/�,.�.•f�" Manager — Co unity & Local Government Relations STEP 2: VERIFICATION (TO BE COMPLETED BY REQUESTOR) Please confirm that the information detailed above reasonably describes the otdered or requested project by signing and dating below. Alternatively, if you believe that the project has not been reasonably described, please contact Xcel Energy. The pxoject as described above on this Scoping Estimate is a reasonably accurate description of our ordered/requested project. Date: �.�`� �. �� , 2013 Name: Ryan Schroeder Signature� Title: City Administratar Please return this �orm to (addressee, Xcel Energy) ------------------------------------------------------......_-----____--------------------------------_-_------ STEP 3: SCOPING ESTIMATE (TO BE COMPLETED BY XCEL ENERGY) To detern�ine whether the proposed project is a special facility, Xcel Enezgy estimated the cost to do the pxoject using Company-designated standard construction, and the cost to construct the project as ordered/requested. If the project as ordered/requested costs ' more than the standard construction, then Xcel Enargy regards it as a special facility. The estimatad excess expendittares are determined by subtracting the cost of the project using standard methods from the cost of the project as requested: Page 3 of 5 Attachrnent C-1 Estinaate of cost of ordered/requested project: $ 179,012.82 Estimate of cost of project using standard construction: $ 58,718.72 Estimated Excess Expenditures: $ 117,492.00 Standard facility in this cucumstance is overhead to overhead line relocation. Additional comments: If the landowners involved do not cooperate or if the City of Cottage Grove requests changes to the assumptions this estimate is based on, a new estimate will have to be produced based on the new project scope. If the City of Cottage Giove wishes to change the scope of the project, please let us know. We would be happy to review those considerations and potential cost differences with you. Date; May 23, 2013 !, �. � \ ,.:�;.,�.. �� , I Signature: � j�-��.�� _�'" w Xcel Enexgy Preparer Name: Sue Gille Title: Xcel Energy Electric Dasign Manager STEP 4: REQUEST FOR ENGINEERING ESTIMATE (TO BE COMPLETED BY REQUESTOR) Aftex you have reviewed this scoping estimate, please indicate whether you wish to proceed to obtain more information on construction by filling in the appropriate blanks below. If you wish to proceed, a more definitive Engineering Estim.ate is xequued. Please checic the appropriate box and sign and return this form to (addressee, Xcel Energy) The Ciry has received and reviewed your Scoping Estimate, and is interested in ining more information. Please provide me with a more detailed Engineering Estimate of the costs associated with this project. ox Page 4 of S ( Attachment C-1 ❑ The City has received and reviewed your Scoping Estimate, and is NOT interested in obtaining more infoi�nation on construction, Therefore, I do not request an Engineering Estimate for this project. or ❑ The City has additional questions/concerns which need to be addressed before it can detexmine whether ta proceed with constiuction. Please contact me, Date: ��`� � �-'� , 2013 r Signat � � Ryan c oeder Title: City Administrator Page 5 of S _.__ _ .. _..._. . - - - -- —. _ .. ,, Attachment C-2 l� f J/° RESpONSIBLE BY NATURETM 1700EastCountyRoadE White Bear Lake, Minnesota 55110-4668 May 22, 2093 � Mr. Ryan Schroeder City Administrator City of Cottage Grove � 12800 Ravine Parkway South ' Cottage Grove, MN 55016 Re: Cit� Request For Information on Potential Special Facilities Project � 70 Street & Keats Avenue Undergrounding Project Your City has requested information from Northern States Power Company, a Minnesota corporation ("Xcel Energy" or the "Company") regarding a potential undergrounding project near 70'" Street and Keats Avenue. Based on our understanding of this potential project and our experience with similar projects, we believe that this may be a"specia( facilities" project. Section 5,3 of the rules and regulations of our Minnesota Electric Rate Book (tarif� contains the de�nition of standard and "special facilities". To determine if this is a"speciai facilities" project we need to complete a scoping estimate. Attachment A is a"Scoping Estimate" form. A scoping estimate is a broad based estimate of the project cost; it is ' not a definitive project cost estimate or a cost guarantee, Please review the project information on the Scoping Estimate form. Include any additional information necessary to clearly and accurately define the proposed project and any City-imposed conditions or requirements. Please sign and return the Scoping Estimate form to us, as indicated at Step 2 of the ' form. Xcel Energy will then provide you with the completed Scoping Estimate of the projecYs estimated cost and a determination as to whether this is a"special facilities" project. � The Xcel Energy tariff a(lows Xcel Energy ta recover or see{c recovery of any excess expenditure associated with a special facility. The available methods of cost�recovery depend on several factors. For example, if'the project is distribution facility undergrounding ordered by a city, the cost recovery procedures in our City Requested Facilities Surcharge ("CRFS") Rider may apply {see Attachment B). The CRF'S May also apply if a City requests undergrounding and agrees to use the CRFS, This is a Minnesota Public Utilities Commission ("MPUC") approved automatic surcharge on electric customers within your City only. If the "special facility" does not involve the undergrounding of a distribution facility pursuant to a City's police powers, or if the City and Xcel �nergy do not mutually agree to use the CRFS to recover the excess expenditures for a distribution undergrounding project, use of a surcharge to recover excess expenditures requires a specific filing and approvai by the MPUC. The City can aiso choose to prepay or to otherwise arrange for payment of the excess expenditures for • special facilities. Attachment C explains how we will notify you if we attempt to recover the excess expenditures through the CRFS Rider. Please note that your City has the right to challenge: (1) Xcel Energy's determination that a surcharge is authorized; (2) the amount of the surcharge; and (3) whether the surcharge is recovered from Xcel �nergy's �u�t�mers in your City oNy. � Attachment C-2 Next Steps After you review and return the signed Scoping Estimate form, Xcel Energy will send you the completed scoping estimate, along with more specific information related to the potential use of the CRFS Rider for recovery of excess expenditures of an undergrounding of a distribution line or other � special facilities project. Upon receiving this information, the City can assess ifs interests and options and decide how to proceed. If you have any questions, please feel free to contact me direct(y at 651/458-1228. Sincerely, � olette Jurek Community Relat ns Manager colette.c.jurek@xcelenergy.com Cc: Jennifer Levitt, City Engineer Sue Gille, Xcel Energy Electric Design Manager Attachment A: Project Scoping Estimate Form Attachment B: Xcel Energy MN Electric Rate Book, Rules and Regulations, Section 5.3 and the CRF'S rider rate schedule. Attachment C: Flowchart of Notification Steps For CR�'S Implementation Attachment C-2 ATTACIIMENT A SCOPING ESTIMATE 70 Street & Keats Avenue A"Scoping Estimate" is provided by Xcel Energy for the convenience of the entity ordering or requesting the pxoject. This approxirrzation is our initial assessment of the costs associated with an ordered or requested �roject. The Scoping Estimate is generally based on our previous experiance with companable projects and usas histoxical cost data. This estimate, therefore, is only a"ballparlc" estimate of the costs associated with this project. The actual costs may be higher or Iower. We use the Scoping Estzmate to deterrnine whether the installation requested may constitute a"special facility." This estimate normally precedes oiu more refined Engineering Estimate. STEP 1: CHARACTERIZATION OF PROPOSED PROJECT (TO BE ', COMPLETED BY XCEL ENERGY) Requestor Narne: City of Cottage Grove/Ryan Schroeder, City Administratox Address: 12800 Ravine Parlcway South Cottage Grove, MN 55016 Telephone; 651/458-2800 E-mail; rschroedex@cottage-grove.org Pz�oiect Information. Description of the type of project requested, its proposed location and the reason for the request: City of Cottage Grove has requested an undergrounding estimate regarding plans to underground dist�ibution facilities near 70 Street and Keats Avenue. The project rec�uested by the City of Cottage Grove includes ramoval of the existing overhead electric distribution system and replacing that system with a new underground electric distribution system. Pxoject Assumptions, Tnclude any additional conditions or assumptions regarding the project descriptzon that may impact cost. Identify taslcs that are Xcal Energy's responsibility and taslcs that are the Requestax's responsibility. City of Cottage Grove is interested in buiying overhead distribution lines wherever feasible along this stretch of roadway, Xcel Energy vvill replace the existing overhead dish•ibution system with a new underground disnibution system that will result in providing Xcel Energy the equivalent operating characteristics and system reliability as tha syste�n we are being asked to replace. This project is proposed to be installed in the existing and/or newly acquired road right-of way. If additional easements are necessary to accommodate the installation of the new underground distribution facilities, those costs will be added to this project and will be the responsibility of the City. Page 1 of 5 Attachrnent C-2 The surcharge amount wi11 reflect actual, not estimated, project costs. Xcel Energy responsibilities; Letters to affected customers Permit applications to appropxiate bodies Inform City of suggested equipment pad locations (Xce1 Energy will not acquire easements) City of Cottage Grove Ground restoration � responsibilities: Communication/coordination with other utilities of existing or new facilities. Easement acquisition Street light replacements Surveying along entire project as required by Xcel Energy for their buried facilities. The city will be required to work with existing overhead service customers impacted by this project to convei~t theix electric service from overhead to underground at no cost to Xcel Energy. Tlus may include the acquisition of easements and/or additional right-of way necessary for new surface mounted equipment such as transformers, pedestals, underground cable, switching equipment, etc. Any additional right-o� way or easement acquisition not related to a customer's electric service conversion that is necessary for the installation of new surface mounted equipment is also the responsibility of the City. The City will also be responsible for the cost of removal or any privately-owned electric circuits attached to existing Xcel Energy poles prior to their xemoval. Joint responsibilities: communication with property owners along the proposed route project scheduling The estimate does NOT include the following: • underground sprinkler system repair and/or replacement; • possible additional costs incurred due to soil conditions that might impair the installati.on of uiidergrotuid facilities such as rock formations; • delay time for Xcel Enexgy crews as the result of actions or decisions made by the City or othex parties; • relocation of night watch lights; • repair and/or replacement of customer-owned underground facilities not exposed at the time service is installed; and • any streetlight improvements and/or additions. • easements • restoration • additional costs dua to frost and/or winter construction charges e replacement of privately-owned shrubbery located in public right-of way (existing or new) or easement areas (existing or new) where necessary to install underground facilities Page 2 of 5 Attachment C-2 Transfer of Customers to Underground Service xcel Energy has no authority to compel customers to transfer to underground service. Propei�ty owners must voluntarily agree to convert to underground electric service, It is our understanding that the City will be responsible for the conversion coordination and the paynnent of underground electric service conversion costs for the zesidential customers near 70 Street and Keats Avenue. The conversion woxlc will need to be completed by a private electrical cont�actor and those costs are not included in this estimate. We recommend that the City contract with one electrical company to complete the eonvarsion woxlc for this project. Please be advised that our residential ' lmderground service rate is an additional $2.00 per month per customer on an on-going � basis. Date: S/22/13 Xcel Energy Preparer Name: Colette Jurek Signature; ��'(..si•.v`..i J � Manager — Co uruty & Local Government Relations STEP 2: VERIFICATION (TO BE COMPLET�D BY ItEQUESTOR) Please confirm that the information detailed above reasonably describes the ordered or requested project by signing and dating below. Alternatively, if you believe that the project has not been reasonably described, please contact Xcel Energy, The project as described above on this Scoping Estimate is a reasonably accurate description of our ordered/requested project. Date: ��`-(� � , 2013 Name: Ryan Schroeder -.` 1 l /, Signat Title: City Admitnistrator �_,_. . Please return this form to (addressee, Xcel Energy) ..____-------------�_______----------_____..__.._------.._____..-----_.._____..____----_____..__.._-------_____....___.. STEP 3: SCOPING ESTIMATE (TO BE COMPLETED BY XCEL ENERGY) To determine whether the proposed pxoject is a special facility, Xcel Energy estimated the cost to do the project using Cornpany-designated standard construction, and the cost to construct the project as ordered/requested. If the project as ordered/requested costs more than the standard construction, then Xcel Energy regards it as a special facility. The estimatad excess expenditures are deteirnined by subtracting the cost of the project using standard methods from the cost of the project as requested: Page 3 of S Attachment C-2 Estimate of cost of ordered/requested project: $ 147,06L10 Estimate of cost of project using standard construction: $ 63,530.45 Estimated Excess Expenditures: $ 48,672.35 Standard facility in this circumstance is overhead to overhead line relocation. Additional comments: If the landowners involved do not cooperate or if the City of Cottage Grove requests ohanges to the assumptions this estimate is based on, a new estimata will have to be produced based oii the new proj ect scope. If the City of Cottage Grove wishes to change the scope of the project, please let us lcnow. We would be happy to review those considerations and potential cost differences with you. Date: May 23, 2013 � + � � �� , ..� �� Signature� ,•' f��---- `. ��,...�•f f� Xcel Energy Preparer Name: Sue Gille Title: Xcel Enexgy Electric Design Manager STEP 4: REQUEST FOR ENGINEERING ESTIMATE (TO BE COMPLETED BY REQUESTOR) After you have reviewed this scoping estimate, please indicate whether you wish to pzoceed to obtain more infoi�rnation on construction by filling in the appropxiate blanlcs below. If you wish to proceed, a more definitive Engineering Estimate is required. Please checl� the appropriate box and sign and return this form to (addressee, Xcel Energy) The Ciry has xeceived and reviewed your Scoping Estimate, and is interested in btaining moxe information. Please provide me with a more detailed Engineering Estimate of the costs associated with this project. or Page 4 of 5 Attachment C-2 ❑ The City has received and reviewed your Scoping Estimate, and is NOT interested in obtaining more information on construction. Therefore, I do not request an Engineering Estimate for this project. oz ❑ The City has additional questions/concerns which need to be addressed before it can determine whether to proceed with construction, Please contact me. Date; �� }}� (�, `► , 2013 �. � �. Signahu•e• yan �c oeder Title; City Administrator I Page 5 of S Attachment D Northern States Power Company, a Minnesota Corporation City Requested Special Facilities Surcharge (CRFS) �'ity �f Gottage Gt°o�ye East Point Douglas and 70th/Keats Excess Eapenditures = $195,809 Customer Class Customers Surchatge� Months Recovery Residential 12,001 $1.Q0 15 $181,330 Res Low Income 235 �� .Ofl 15 $3,551 Small C&I ND 519 �1.00 15 $7,842 Small C&I 211 $3.00 15 $9,564 Large C&I 43 $4�.00 15 $2,599 Street Lighting 60 �9 .00 15 $907 Sm Mun Pump ND 3 �1.00 15 $45 Small Mun Pump 6 $3.0{3 15 $272 Large Mun Pump 1 $4.00 15 $60 Total 13,079 $206,170 Total Carrying Charges included in recovery amount� $10 Allowable Class Surcharge Levels per Month Under CRSF Tariff Residential: $0.25 up to $5.00 Low Income Residential: $0.25 up to $1.00 Small C&I Non-Dmd: $0.25 up to $5.00 Small C&I - Demand: 3 Times Residential Amount Large C&I - Demand: 4 Times Residential Amount (1) Adjustment possible in final months of recovery period for more precise cost recovery. (2) Monthly carrying charge of 0.8810% applies to outstanding balance, equal to compounded rate based on 7.45% overall rate of return from the last general rate case (2012) and 3.85% tax factor. 07 CottageGroveCRFS2014EPD70bV.xls SumV SVH 6/24/2014 11:33 AM Attachrnent E Cottage Grove CRFS Customer Notification Bi11 Messages (in SeptembeY 2014 bills, with stucharge beginning Octobei 2014) Residential and Residential Low-Income Beginning next month a City Requested Facilities Suicharge will appeai on your electric bill. The surcharge recovers the cost of non-standard constYUCtion woik performed at the direcrion of the City of Cottage Grove. The surcharge will be $1 for 15 months. If you have any questions, please contact us at 1-800-895-4999. Small C&I (demand & non-demand) and Small Munici�al Pum�ingldemand & non- ', demand Beginning next month a City Requested Facilities Suichaige will appeai on your electric � bill. The surcharge recovers the cost of non-standard constiuction woik performed at the duecrion of the City of Cottage Giove. The sLUCharge will be $1 for non-demand customeYS and $3 for demand customers, for 15 months. If you have any questions, please contact us at 1-800-481-4700. Large C&I & Larg,e Munici�al�g Beginning next month a City Requested Facilities Surchaige will appear on your electYic bill. The suicharge recovers the cost of non-standard construction work performed at the diiecrion of the City of Cottage Giove. The sutcharge will be $4 foi 15 months. If you have any questions, please contact us at 1-800-481-4700. Street Lighring Beginning next month a City Requested Facilities Surcharge will appear on your electric bill. The surcharge recovers the cost of non-standard construction work performed at the direction of the City of Cottage Giove. The surcharge will be $1 for 15 months. If you have any questions, please contact us at 1-800-481-4700.