§ 6. Other energy franchises; dispute resolution.

(a)

Other energy franchises. The annual dollar amount of the franchise fee collected from a company customer, or a reasonable estimate of the franchise fee that would be collected from a prospective company customer, for electric service provided under this franchise shall not be materially greater than the annual dollar amount of the franchise fee that would be collected for similar service to such customer by another energy supplier under the terms of a new franchise, assuming comparable energy usage by said customer.

(b)

Definitions. For the purposes of section 6 only, the following terms shall have the meanings given. "Similar service" shall mean the supply of energy to a customer for the same end-use purpose or function as the electricity which is or could be furnished by the company. "New franchise" shall mean a franchise granted to another energy supplier after September 1, 2006, or an amendment to an existing franchise held by another energy supplier September 1, 2006. "Energy supplier" shall mean a supplier of energy other than the company.

(c)

Dispute resolution. The city shall give the company notice by certified mail of the material provisions of a proposed new franchise at least sixty (60) days before it is finally adopted by the city council. The company shall state in writing its position and give the factual bases for that position on whether the adoption of such new franchise would violate the prohibition in section 6(a) above within thirty (30) days of the date of notice. The company's failure to respond will be a waiver of any rights, remedies, or causes of action it may have under section 6. If the company's position is that the adoption of the proposed new franchise would violate section 6(a) above, then at the request of either the company or the city, the issue of whether the proposed new franchise violates section 6(a) shall be submitted to binding arbitration, using an arbitrator selected under the commercial arbitration rules of the American Arbitration Association. The franchise fee terms of any new franchise must be consistent with the decision of the arbitrator.

(d)

Consent of company. Section 6 does not apply to any proposed new franchise to which the company consents in writing.

(e)

Annual cap for competitive market rider. There is hereby exempted from the franchise fee any requirement that the company pay or collect by such surcharge a franchise fee in excess of six hundred twenty thousand dollars ($620,000.00) in any calendar year ("annual cap") from any large commercial and industrial class customer receiving electric service from the company under that certain competitive market rider, as originally approved by the commission on June 18, 1993, Docket No. E-002/M-93-301. Any company customer receiving service from the company under the competitive market rider before the effective date of this ordinance shall continue to be eligible for the annual cap. Any company customer which has not received service under the competitive market rider from the company before the effective date of this ordinance which thereafter receives service under the competitive market rider is eligible for the annual cap if the company provides written certification to the city that it has verified such customer's eligibility for service under the terms and conditions of the said competitive market rider and sets forth the findings and basis for such certification. This annual cap shall not be applicable to any company customer which has not received service under the competitive market rider from the company before the effective date of this ordinance if the said competitive market rider is amended or modified in any way which materially changes the substantive requirements a customer must satisfy to receive electric service under such rider, or if such rider is withdrawn, repealed or for any reason becomes ineffective.

(C.F. No. 06-596, § 6, 7-26-06)