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Attachment B 0 Xcel Energy City of Arden Hills, MN, Electric Franchise Fee Estimates May 2024 In consultation with city staff, Xcel Energy is providing the following information to assist your community as you consider assessing electric franchise fees on our customers. Given market sensitivity to electric rates, we encourage cities to connect with their affected residents and businesses regarding the impact of utility fees. Cities have the option to collect per -customer franchise fees for gas and/or electric service within their city. Presently, the City of Arden Hills does not collect franchise fees. These franchise fees are collected by Xcel Energy and paid to the city in lieu of any other permit fees or construction performance bond that would otherwise be assessed to Xcel Energy electric and gas construction operations. However, we must still follow all city permit guidelines for our work. Xcel Energy retains no portion of the franchise fee that the city may wish to levy on our customers — all fees collected are remitted to the city on a quarterly basis. The city may use this fee revenue as they wish. The fee projection table provided on page 2 is based upon Xcel Energy's Arden Hills customers' energy use over a 12-month period ending December 2023. These options are listed as examples. They are shown for illustration — other fee levels in each category are available to the city for its action, but the city and Xcel Energy must reach agreement. Fees must be levied in $.25 increments. Fee collection begins within 90 days of receipt of documentation supporting city council action to implement fees, or later if requested by a city. Electric Rate Classifications Monthly Electric Usage Small C&I: Non -Demand Maximum load less than 25 KW per month Example: small retail shop Small C&I: Demand Maximum load between 25 —100 KW per month Example: restaurant Large C&I Maximum load over 100 KW per month Example: manufacturer, school, hospital