§ 16. Company Charges to Customer.

A.

Types of Charges Company charges shall be established in Schedule A and adopted by the city in the form of a resolution, which shall be subject to a public hearing before the city council. Charges shall be limited to the following:

Fixed customer charge: That part of the charge that is a flat fee charged to customers for access to the Energy Park Utility Company service.

Demand charge: That part of the rate schedule to be paid by customers which relates to the maximum amount of energy in BTUs added to or removed during a one-hour period from Central Energy Plant Chilled or Hot Water. The demand charge is equal to the following expenses and costs divided by the projected energy production, as measured in BTUs produced hourly to meet the obligations of the Company to its customers under the Hot and Chilled Water Service Agreements (i.e. the total contract heating demand and contract cooling demand or demand revenue). The demand charge shall exclude fuel and water treatment costs.

i)

Budgeted operating expenses,

ii)

All debt service costs and amounts required to meet minimum financial coverage requirements, and

iii)

A fixed reimbursement of $270,000, which will decrease to $170,000 annually beginning January 1, 2012 through December 31, 2013. Beginning January 1, 2014, the fixed reimbursement will be adjusted each year by a dollar amount expressed in percentages equal to the percentage increase or decrease in the Consumer Price Index for All Urban Consumers in the Minneapolis/St. Paul area (or its successor index) for the latest twelve-month period, the adjustments to be cumulative and based on the amount of the latest adjustment plus the previous year's payment,

iv)

The demand charge as calculated above shall be increased by an additional amount of not less than five (5) percent to provide for a capital improvement reserve.

Commodity charge: That part of the rate schedule to be paid by customers which relates to the amount of fuel used to produce hot and chilled water. Commodity charges are intended to cover the cost of fuel to operate the plant and water treatment.

Fuel adjustment charge: That part of the rate based on the variation of the estimated commodity revenues developed in an annual projection and actual commodity related costs incurred by the company. The fuel adjustment charge is intended to be used from time to time for revenue shortfalls or surpluses, typically attributable to higher than anticipated fuel costs.

Administrative services charge: That part of the rate schedule intended to 1) offset administrative and overhead costs to the Saint Paul Port Authority, which shall be thirty thousand five hundred seventy-five dollars ($30,575.00) annually as of July 1, 2010 and shall be adjusted each year by a dollar amount expressed in percentages equal to the percentage increase or decrease in the Consumer Price Index for All Urban Consumers in the Minneapolis/St. Paul area (or its successor index) for the latest twelve-month period, the adjustments to be cumulative and based on the amount of the latest adjustment plus the previous year's payment; and 2) be paid by customers who desire to have their total monthly bill subdivided and billed directly to tenants based on allocation factors and submeters. Such service includes the cost of preparing and mailing statements, automatically reading submeters, and prorating total bills to tenants based on allocation factors provided by each customer.

Late fee : the company may charge a late payment penalty of five (5) percent of the total amount due which may be added to bills which are not paid within twenty-one (21) days of the billing date.

Surcharge : that part of the charge used to cover company costs associated with the franchise fee, state and local taxes.

B.

Off Season Customer Sales. Company charges to customer for heated water generated during the cooling season, and cooled water generated during the heating season, or to operate chilling or heating equipment as appropriate for the efficient and economical distribution of off-season by-product energy shall not be less than the operating costs incurred by the company in distributing such water, but shall not be greater than the commodity charge. However, company and customer may agree upon a flat monthly or annual rate for off-season byproduct energy or a reservation of off-season byproduct energy as long as the rate is not less than the above-mentioned costs of company.

C.

Reports. Unless delayed by causes beyond the company's reasonable control, the company shall deliver to its customers within one hundred twenty (120) days after the end of each calendar year a written statement setting out in reasonable detail the amount of actual demand-related expenses and actual energy demand for the preceding calendar year. If the aggregate of monthly demand-related expense payments actually paid by customers to the company during each such period differs from the amount budgeted demand-related expenses for the same time period as per the above schedule, or if the actual energy demand during each such period differs from the amount of budgeted energy demand for the same time period as per the above schedule, such actual amounts shall be used to calculate a revised demand charge, and customers shall pay or the company shall refund the difference (as the case may be) without interest within thirty (30) days after the date of delivery of said statement.

(C.F. No. 05-344, § 2, 5-11-05; Ord No. 10-59, § 1, 1-12-11)