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Attachment B <br />�& Xce/Energyv <br />City of Arden Hills, MN, Franchise Fee Estimates <br />September 2023 <br />The following information is provided to assist your community in discussing assessing electric <br />and gas franchise fees onto our customers. Given market sensitivity to electric and gas rates, <br />we strongly encourage the city to reach out to residents and businesses regarding these fees. <br />Cities have the option to collect per -customer franchise fees for gas and/or electric service <br />within their city. Presently, the City of Arden Hills does not collect franchise fees. <br />These franchise fees are collected by Xcel Energy and paid to the city in lieu of any other permit <br />fees or construction bond performance that would otherwise be assessed to Xcel Energy <br />electric and gas construction operations. However, we must still follow all city permit guidelines <br />for our work. <br />Xcel Energy retains no portion of the franchise fee that the city may wish to levy on our <br />customers — all fees collected are remitted to the city on a quarterly basis. The city may use this <br />fee revenue as they wish. <br />The fee projection table provided on page 2 is based upon Xcel Energy's Arden Hills customers' <br />energy use in the previous 12 months, ending August 2023. These are examples shown for <br />illustration — other options are available to the city for its action, but the city and Xcel Energy <br />must reach agreement. <br />Fee collection begins within 90 days of receipt of documentation supporting city council action <br />to implement fees. <br />Electric Rate Classifications <br />Monthly Electric Usage <br />Small C&I: Non -Demand <br />Maximum load less than 25 KW per month <br />Example: small retail shop <br />Small C&I: Demand <br />Maximum load between 25 — 100 KW per month <br />Example: restaurant <br />Large C&I <br />Maximum load over 100 KW per month <br />Example: manufacturer, school, hospital <br />