AN ORDINANCE GRANTING SOUTHWESTERN PUBLIC SERVICE
(SPS) D.B.A. XCEL ENERGY, ITS SUCCESSORS AND ASSIGNS, A FRANCHISE
TO CONSTRUCT, MAINTAIN, EQUIP AND OPERATE IN THE CITY OF LORENZO,
TEXAS, SYSTEMS TO USE, STORE, SELL DISTRIBUTE AND SUPPLY ELECTRIC
ENERGY FOR LIGHT, HEAT AND POWER AND OTHER PURPOSES TO SAID CITY,
ITS INHABITANTS AND OTHERS, AND TO USE THE STREETS, AVENUES, ALLEYS,
HIGHWAYS, BRIDGES AND OTHER PUBLIC GROUNDS OF SAID CITY FOR SAID
PURPOSES FOR A TERM OF TEN YEARS, CANCELLING AND SUPERCEDING THE
EXISTING FRANCHISE ORDINANCE NUMBER 3-17-14 DATED MARCH 14, 1977
AND PRESCRIBING OTHER TERMS AND CONDITIONS THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
LORENZO, TEXAS:
ARTICLE I
There is hereby granted to Southwestern Public Service d.b.a.
Xcel Energy a corporation incorporated under the laws of the
State of Colorado, having a permit to do business in the State
of Texas, and to its successors and assigns, a franchise authorizing
it to construct, equip, maintain and operate in the City of Lorenzo,
Texas, systems to use, store, sell, distribute and otherwise
serve, supply and furnish said City and its inhabitants and others
with electric energy for lights, heat and power and other purposes
and to use the streets, alleys, highways, bridges, and other
public grounds of said City, both above and below the surface
of same, upon the terms and conditions of this ordinance.
The Company shall furnish a standard service to all residents
within the city limits provided that extensions for the purpose
of serving new customers shall be required only at a rate of
two hundred feet (200') per each new potential customer. The
Company shall not be responsible for any interruption of service
arising from floods, fire, windstorms, accidents, to lines, casualties,
acts of God or other causes beyond its control but service interfered
with by any such cause shall be restored as promptly as reasonably
possible.
ARTICLE II
The franchise rights and powers herein granted shall exist
and be in force and after the passage of this ordinance for a
term of ten years.
ARTICLE III
Southwestern Public Service d.b.a. Xcel Energy is hereby
authorized, licensed and empowered to do any and all things necessary
and proper to be done and preformed in executing the powers and
utilizing the privileges herein mentioned and granted by this
franchise, provided that all work be done in said streets, alleys,
highways, or other grounds of said City by said Company shall
be done with the utmost diligence and least inconvenience to
the public or individuals, that said Company shall, within a
reasonable time, restore streets, alleys and public grounds excavated
by it to their original condition as nearly as possible,
and that said work shall be done subject to the approval of the
City. The Company shall assume all liability of risk of damage
to persons or property which may arise from the construction
or operation of any or all of said system and shall save the
City of Lorenzo, Texas, its officers and agents, harmless from
any and all liabilities, claims, damages, costs or expenses that
may arise or be incurred by the City as a result of the Company's
erection, construction or operation of its system or exercise
of any of the rights and privileges herein granted, expressed
or implied.
ARTICLE IV
Southwestern Public Service d.b.a. Xcel Energy, its successors
and assigns, for and in consideration of the granting of this
franchise and as rental for the occupation and use of the streets,
alleys, highways, bridges and other public grounds of the City
of Lorenzo, shall pay the aggregate sum of 3% of the gross receipts,
as hereinafter defined, of the Company, for electric energy used
within the city limits of the City of Lorenzo. "The 'gross
receipts' upon which such rentals and charges are based is defined
and shall be computed and determined as follows: From the total
gross receipts from the sale of such electrical energy for lights,
heat and power, within said city limits, for the particular quarter
of the year involved, there shall be deducted the receipts from
sales to the Federal Government departments and agencies, the
State of Texas, all departments and agencies of said state, the
County of Crosby, the City of Lorenzo, the Independent School
Districts, sales to any cooperative organizations and other public
government authorities, sales to industry upon the utilities
published industrial rates, accounts charged to bad debts, and
the balance paid after said deductions shall constitute the gross
receipts upon which such rentals and charges shall be paid."
Such payments shall be payable for each quarter period of each
year, said periods to begin on the first days of the months of
January, April, July, and October of each year. The payments
covering each period shall be made as soon as reasonably possible
and in any event on or before the last day of the month immediately
following each quarter period.
Such payments shall be made in lieu of any and all other
taxes or other exactions (except general ad Valorem property
taxes and special assessments for local improvements) upon the
business, revenue or property of the Company or any part thereof
in said City during the term of this franchise, and they shall
continue only as long as said Company is not prohibited from
making them by any lawful authority having jurisdiction in the
premises and so long as the City does not charge, levy, or collect
or attempt to charge, levy or collect other franchise, license,
privilege, occupation, excise or revenue taxes or other exactions
(except general ad Valorem property taxes and special assessments
for local improvements). For the purpose of determining the amount
of the gross receipts of the Company, as hereinabove defined,
the books of the company shall, at all times, be subject to the
inspection of the City of Lorenzo.
ARTICLE V
Southwestern Public Service d.b.a. Xcel Energy shall, within
thirty (30) days from the passage of this ordinance, file with
the City Secretary of the City of Lorenzo, Texas, its written
acceptance of this ordinance and upon the filing of such acceptance,
this ordinance shall constitute all of the terms of the franchise
herein granted by the City of Lorenzo, Texas, to Southwestern
Public Service d.b.a. Xcel Energy.
ARTICLE VI
Southwestern Public Service d.b.a. Xcel Energy and the City
recognize that many aspect of the electric utility business are
currently the subject of discussions, examination and inquiry
by different segments of the industry and regulatory authorities
having jurisdiction over the electric utilities and business
and meets its service obligations. In recognition of the present
state of uncertainty respecting these matters, Southwestern Public
Service d.b.a. Xcel Energy and the City each agree, on request
of the other during the term of this ordinance, to meet with
the other and discuss in good faith whether it would be appropriate,
in view of developments of the kind referred to above during
the term of this ordinance, to amend this ordinance or enter
into separate, mutually satisfactory arrangements to effect a
proper accommodation of any such developments.
ARTICLE VII
After passage and taking effect of this ordinance, and upon
its acceptance by the Company, this franchise cancels and supercedes
the franchise designated as Ordinance 3-14-77, between the City
of Lorenzo and Southwestern Public Service d.b.a. Xcel Energy.
ARTICLE VIII
The City of Lubbock's current franchise agreement with Southwestern
Public Service d.b.a. Xcel Energy expires this year and SPS agrees
that for 60 days after a new franchise agreement has been adopted
by the City of Lubbock, the City of Lorenzo, at its option, may
require SPS to substitute any more favorable terms, conditions,
or fees, contained in the new Lubbock franchise agreement, that
may be applicable to a city such as Lorenzo, or, on an equivalent
basis to amend the agreement. It is understood that the City
of Lubbock has a municipal utility and that some terms, conditions
and concessions in the Lubbock franchise agreement may not be
applicable to a city that does not have a municipal utility.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
LORENZO, TEXAS, ON THe 8TH DAY OF APRIL, A. D., 2002