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<br />9.2 Terms Defined. For the purpose of this Section 9, the following definitions apply: <br /> <br />9.2.1 "Delivery Component" of electric service means the portion of the <br />retail rate paid by the customer to compensate Company for the use of transmission and <br />distribution facilities, including investment costs and all expenses of constructing, operating and <br />maintaining such facilities. <br /> <br />9.2.2 "Discount Rate" means a reduced electric retail rate for a customer <br />or class of customers approved by the Commission for service to a customer of Company located <br />within City to respond to competition from the threat of (i) self-generation or (ii) the conversion <br />of customer-equipment to use a form of energy other than electricity. <br /> <br />9.2.3 "Gross Revenues" means all sums received by Company from the <br />sale or delivery of electricity to its retail customers within the corporate limits of the City, <br />excluding any surcharge, sales tax, miscellaneous tariff charges or any similar addition to <br />Company's charges to customers for the purpose of reimbursing Company for the franchise fee, <br />sales tax, or similar charge. The term "Gross Revenues" shall also exclude all revenues <br />received by Company from the sale of electric service provided under a Discount Rate. <br /> <br />9.2.4 "Supply Component" of electric service means the portion of the <br />retail rate paid by the consumer to compensate the supplier for electric capacity and/or energy <br />delivered to the consumer, including investment costs and all expenses of producing or <br />purchasing such capacity and/or energy. <br /> <br />9.3 Discount Rate Adiustment. If the City adopts a separate ordinance as described <br />in Section 9.1, thereafter Company shall give City written notice of any Commission <br />proceedings relating to implementation of a Discount Rate for a specifically identified customer <br />within the City. In addition, if both a separate ordinance and a Discount Rate are in effect, <br />Company and City may mutually agree by letter agreement that Company will collect a franchise <br />fee on the Discount Rate equal to, or the equivalent of, the fee or tax the City would have <br />received if the customer had elected to purchase the competing form of energy instead of electric <br />service from Company. <br /> <br />9.4 Exclusive Electric Service. Company has agreed to collect and pay any franchise <br />fee imposed pursuant to this Section 9 only so long as the law allows Company to be the <br />exclusive provider of both the Supply Component and the Delivery Component of retail electric <br />service to its defined service area within the City. Company's exclusive service status is <br />currently provided under Minnesota Statutes Section 216B.37 et seq. If Company is no longer <br />the exclusive provider of both the Supply Component and the Delivery Component of retail <br />service within the City, Company's obligation to collect and pay a franchise fee on such retail <br />electric service shall terminate upon 20 days notice to the City. However, notwithstanding the <br />foregoing, Company agrees to collect and pay any applicable franchise fee imposed by the City <br />on the revenues from the Delivery Component of electric service provided by Company to retail <br />customers located within the City under the applicable Commission-approved Delivery <br /> <br />7 <br />