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<br />Component of Company's retail electric service rates and Company further agrees to collect the <br />franchise fee on the Supply Component to the full extent the City is authorized by law, and <br />implements such authorization, to collect the fee or its equivalent amount, from all entities <br />providing the Supply Component through electric distribution facilities operated by Company by <br />means of a surcharge of equal amount on Company's billings to its customers within the City, <br />or by such other means as the Commission has authorized. <br /> <br />9.5 Collection of the Fee. The franchise fee shall be payable quarterly and shall be <br />based on the Gross Revenues of Company during complete billing months during the period for <br />which payment is to be made. The payment shall be due the last business day of the month <br />following the period for which the payment is made. The percent fee may be changed by <br />ordinance from time to time; however, each change shall meet the same notice requirements and <br />the percentage may not be changed more often than annually. Such fee shall not exceed any <br />amount which Company may legally charge to its customers prior to payment to the City by <br />imposing a surcharge equivalent to such fee in its rates for electric service. Company may pay <br />the City the fee based upon the surcharge billed subject to subsequent reductions to account for <br />uncollectibles, refunds and correction of erroneous billings. The time and manner of collecting <br />the franchise fee is subject to the approval of the Commission, which Company agrees to use <br />its best efforts to obtain. Company agrees to make its Gross Revenues records available for <br />inspection by the City at reasonable times. <br /> <br />9.6 Conditions on the Fee. The separate ordinance imposing the fee shall not be <br />effective against Company unless it lawfully imposes and the City quarterly or more often <br />collects a fee or tax of the same or greater equivalent amount on the receipts from sales of <br />energy within the City by any other energy supplier, provided that, as to such a supplier, the <br />City has the authority to require a franchise fee or to impose a tax. In the event the City cannot <br />collect the same or greater equivalent amount from any other energy supplier, Company agrees <br />to collect and pay any applicable franchise fee imposed by the City on the revenues from the <br />Delivery Component of electric service provided by Company to retail customers located within <br />the City under the applicable Commission-approved Delivery Component of Company's retail <br />electric service rates. This franchise fee on the Commission-approved Delivery Component of <br />electric retail service shall apply whether Company or another entity provides the Supply <br />Component of the retail electric service to such customer. The" same or greater equivalent <br />amount" shall be measured, if practicable, by comparing amounts collected as a franchise fee <br />from each similar customer, or by comparing, as to similar customers, the percentage of the <br />annual bill represented by the amount collected for the franchise fee purposes. The franchise <br />fee or tax shall be applicable to energy sales for any energy use related to heating, cooling, or <br />lighting, as well as to the supply of energy needed to run machinery and appliances on premises <br />located within or adjacent to the City, but shall not apply to energy sales for the purpose for <br />providing fuel for vehicles. If Company specifically consents in writing to a franchise or <br />separate ordinance collecting or failing to collect a fee from another energy supplier in <br />contravention to this Section 9.5, the foregoing conditions will be waived to the extent of such <br />written consent. <br /> <br />8 <br />