ORD 2021-20 Electric Franchise Northern States Power 2021.10.25ELECTRIC FRANCHISE ORDINANCE
ORDINANCE N0.2021-20
CITY OF OTSEGO, WRIGHT COUNTY, MINNESOTA
AN ORDINANCE GRANTING TO NORTHERN STATES POWER COMPANY, A
MINNESOTA CORPORATION, ITS SUCCESSORS AND ASSIGNS, PERMISSION TO
CONSTRUCT, OPERATE, REPAIR AND MAINTAIN IN THE CITY OF OTSEGO,
MINNESOTA, AN ELECTRIC DISTRIBUTION SYSTEM AND TRANSMISSION LINES,
INCLUDING NECESSARY POLES, LINES, FIXTURES AND APPURTENANCES, FOR
THE FURNISHING OF ELECTRIC ENERGY TO THE CITY, ITS INHABITANTS, AND
OTHERS, AND TO USE THE PUBLIC GROUNDS AND PUBLIC WAYS OF THE CITY
FOR SUCH PURPOSES,
THE CITY COUNCIL OF THE CITY OF OTSEGO, WRIGHT COUNTY, MINNESOTA,
ORDAINS:
SECTION 1. DEFINITIONS.
For plu-poses of this Ordinance, the following capitalized terms listed in alphabetical order shall
have the following meanings.
1.1 City. The City of Otsego, County of Wright, State of Minnesota.
1.2 City Utility System. Facilities used for providing public utility service owned or
operated by City or agency thereof, including sewer and water service, street lighting and traffic signals,
but excluding facilities for providing heating, lighting or other forms of energy.
1.3 Commission. The Minnesota Public Utilities Commission, or any successor agency or
agencies, including an agency of the federal government, which preempts all, or part of the authority to
regulate electric retail rates now vested in the Minnesota Public Utilities Commission.
1.4 Company. Northern States Power Company, a Minnesota corporation, its successors
and assigns.
1.5 Electric Facilities. Electric transmission and distribution towers, poles, lines, guys,
anchors, conduits, fixtures, and necessary appw-tenances owned or operated by Company for the purpose
of providing electric energy for public use.
1.6 Notice. A written notice served by one party on the other party referencing one or
more provisions of this Ordinance. Notice to Company shall be mailed to the General Counsel, 414
Nicollet Mall, 5`I' Floor, Minneapolis, MN 55401. Notice to the City shall be mailed to the City
Administrator, City Hall, 13400-90t' Street NE, Otsego, MN 55330. Either party may change its
respective address for the purpose of this Ordinance by written notice to the other party.
1.7 Public Ground. Land owned by the City for park, open space or similar purpose, which
is held for use in common by the public.
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1.8 Public Way. Public ilght-of--way within the City as defined in Minn. Stat. § 237.162,
subd. 3.
SECTION 2. ADOPTION OF FRANCHISE.
2.1 Giant of Franchise. City hereby giants Company, for a period of 20 years from the date
passed and approved by the City, the right to transmit and furnish electric energy for light, heat, power
and other purposes for public and private use within and through the limits of the City as its boundaries
now exist or as they may be extended in the future. For these purposes, Company may construct, operate,
repair and maintain Electric Facilities in, on, over, under and across the Public Grounds and Public Ways
of City, subject to the provisions of this Ordinance. Company may do all reasonable things necessary or
customary to accomplish these purposes, subject, however, to such reasonable regulations as may be
imposed by the City pursuant to ordinance and to the further provisions of this franchise agreement.
2.2 Effective Date• Written Acceptance. This franchise agreement shall be in force and
effect from and after passage of this Ordinance, its acceptance by Company, and its publication as
required by law. The City, by Council resolution, may revoke this franchise agreement if Company does
not file a written acceptance with the City within 90 days after publication.
2.3 Service and Rates. The service to be provided and the rates to be charged by Company
for electric service in City are subject to the jurisdiction of the Commission. The area within the City in
which Company may provide electric service is subject to the provisions of Minnesota Statutes, Section
MB.40.
2.4 Publication Expense. The expense of publication of this Ordinance will be paid by City.
2.5 Dispute Resolution. If either party asserts that the other party is in default in the
performance of any obligation hereunder, the complaining party shall notify the other party of the default
and the desired remedy. The notification shall be written. Representatives of the parties must promptly
meet and attempt in good faith to negotiate a resolution of the dispute. If the dispute is not resolved
within 30 days of the written notice, the parties may jointly select a mediator to facilitate further discussion.
The parties will equally share the fees and expenses of this mediator. If a mediator is not used, or if the
parties are unable to resolve the dispute within 30 days after first meeting with the selected mediator,
either party may commence an action in District Court to interpret and enforce this franchise or for such
other relief as may be permitted by law or equity for breach of contract, or either party may take any other
action permitted by law.
SECTION 3. LOCATION OTHER REGULATIONS.
3.1 Location of Facilities. Electric Facilities shall be located, constructed and maintained so
as not to interfere with the safety and convenience of ordinary travel along and over Public Ways and so
as not to disrupt normal operation of any City Utility System previously installed therein. Electric
Facilities shall be located on Public Grounds as determined by the City. Company's construction,
reconstruction, operation, repair, maintenance and location of Electric Facilities shall be subject to
permits if requited by separate ordinance and to other reasonable regulations of the City to the extent not
inconsistent with the terms of this franchise agreement. Company may abandon underground Electric
Facilities in place, provided at the City's request, Company will remove abandoned metal or concrete
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encased conduit interfering with a City improvement project, but only to the extent such conduit is
uncovered by excavation as part of the City improvement project.
3.2 Field Locations and Mapping. Company shall provide field locations for its underground
Electric Facilities within City consistent with the requirements of Minnesota Statutes, Chapter 216D and
mapping information as requited by federal and state law.
3.3 Street Openings. Company shall not open or disturb any Public Ground or Public Way
for any purpose without first having obtained a permit from the City, if required by a separate ordinance,
for which the City may impose a reasonable fee. Permit conditions imposed on Company shall not be
more burdensome than those imposed on other utilities for similar facilities or work. Company may,
however, open and disturb any Public Ground or Public Way without permission from the City where
an emergency exists requiring the immediate repair of Electric Facilities. In such event Company shall
notify the City by telephone to the office designated by the City as soon as practicable. Not later than
the second working day thereafter, Company shall obtain any requited permits and pay any required fees.
3.4 Restoration. After undertaking any work requiring the opening of any Public Ground or
Public Way, Company shall restore the same, including paving and its foundation, to as good a condition
as formerly existed, and shall maintain any paved surface in good condition for six (6) months thereafter.
The work shall be completed as promptly as weather permits, and if Company shall not promptly perform
and complete the work, remove all dirt, rubbish, equipment and material, and put the Public Ground or
Public Way in the said condition, the City shall have, after demand to Company to cute and the passage
of a reasonable period of time following the demand, but not to exceed five (5) days, the right to make
the restoration at the expense of Company. Company shall pay to the City the cost of such work done
for or performed by the City. This remedy shall be in addition to any other remedy available to the City
for noncompliance with this Section 3.4, but the City hereby waives any requirement for Company to
post a construction performance bond, certificate of insurance, letter of credit or any other form of
security or assurance that may be required, under a separate existing or future ordinance of the City, of a
person or entity obtaining the City's permission to install, replace or maintain facilities in a Public Way.
3.5 Avoid Damage to Electric Facilities. Nothing in this Ordinance relieves any person from
liability arising out of the failure to exercise teasonable care to avoid damaging Electric Facilities while
performing any activity.
3.6 Notice of Improvements. The City must give Company reasonable notice of plans for
improvements to Public Grounds or Public Ways where the City has reason to believe that Electric
Facilities may affect or be affected by the improvement. The notice must contain: (i) the nature and
character of the improvements, (ii) the Public Grounds and Public Ways upon which the improvements
are to be made, (iii) the extent of the improvements, (iv) the time when the City will start the work, and
(v) if more than one Public Ground or Public Way is involved, the order in which the work is to proceed.
The notice must be given to Company a sufficient length of time in advance of the actual commencement
of the work, as reasonably possible, to permit Company to make any necessary additions, alterations or
repairs to its Electric Facilities.
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3.7 Shared Use of Poles. Company shall make space available on its poles or towers for
City fire, water utility, police or other City facilities upon terms and conditions acceptable to Company
whenever such use will not interfere with the use of such poles or towers by Company, by another
electric utility, by a telephone utility, or by any cable television company or other form of
communication company. In addition, the City shall pay for any added cost incurred by Company
because of such use by City.
SECTION 4. RELOCATIONS.
4.1 Relocation of Electric Facilities in Public Ways. If the City determines to vacate a Public
Way for a City improvement project, or at City's cost to grade, regrade, or change the line of any Public
Way, or construct or reconstruct any City Utility System in any Public Way, it may order Company to
relocate its Electric Facilities located therein if relocation is reasonably necessary to accomplish the City's
proposed public improvement. Except as provided in Section 4.3, Company shall relocate its Electric
Facilities at its own expense. The City shall give Company reasonable notice of plans to vacate for a City
improvement project, or to grade, regrade, or change the line of any Public Way or to construct or
reconstruct any City Utility System. If a relocation is ordered within five years of a prior relocation of the
same Electric Facilities, which was made at Company expense, the City shall reimburse Company for
non -betterment costs on a time and material basis, provided that if a subsequent relocation is required
because of the extension of a City Utility System to a previously unserved area, Company may be requited
to make the subsequent relocation at its expense. Nothing in this Ordinance requires Company to
relocate, remove, replace or reconstruct at its own expense its Electric Facilities where such relocation,
removal, replacement or reconstruction is solely for the convenience of the City and is not reasonably
necessary for the construction or reconstruction of a Public Way or City Utility System or other City
improvement.
4.2 Relocation of Elect�c Facilities in Public Ground. City may requite Company, at
Company's expense, to relocate or remove its Electric Facilities from Public Ground upon a finding by
City that the Electric Facilities have become or will become a substantial impairment to the existing or
proposed public use of the Public Ground.
4.3 Projects with Federal Funding. City shall not order Company to remove or relocate
its Electric Facilities when a Public Way is vacated, improved or realigned for aright -of --way project
or any other project which is financially subsidized in whole or in part by the Federal Government
or any agency thereof, unless the reasonable non -betterment costs of such relocation are first paid to
Company. The City is obligated to pay Company only for those portions of its relocation costs for
which City has received federal funding specifically allocated for relocation costs in the amount
requested by the Company, which allocated funding the City shall specifically request. Relocation,
removal or rearrangement of any Company Electric Facilities made necessary because of a federally -
aided highway project shall be governed by the provisions of Minnesota Statutes, Section 161.46, as
supplemented or amended. It is understood that the rights herein granted to Company are valuable
rights.
4.4 No Waiver. The provisions of this franchise apply only to facilities constructed in
reliance on a franchise from the City and shall not be construed to waive or modify any rights obtained
by Company for installations within a Company right-of-way acquired by easement or prescriptive right
before the applicable Public Ground or Public Way was established, or Company's rights under state or
county permit.
I'
SECTION 5. TREE TRIMMING.
Company may trim all trees and shrubs in the Public Grounds and Public Ways of City to the
extent Company finds necessary to avoid interference with the proper construction, operation, repair and
maintenance of any Electric Facilities installed hereunder, provided that Company shall save the City
harmless from any liability arising therefrom, and subject to permit or other reasonable regulation by the
City.
SECTION 6. INDEMNIFICATION.
6.1 Indemnity of City. Company shall indemnify, keep and hold the City free and harmless
from any and all liability on account of injury to persons or damage to property occasioned by the
construction, maintenance, repair, inspection, the issuance of permits, or the operation of the Electric
Facilities located in the Public Grounds and Public Ways. The City shall not be indemnified for losses or
claims occasioned through its own negligence except for losses or claims arising out of or alleging the
City's negligence as to the issuance of permits for, or inspection of, Company's plans or work. The City
shall not be indemnified if the injury or damage results from the performance in a proper manner, of acts
reasonably deemed hazardous by Company, and such performance is nevertheless ordered or directed by
City after notice of Company's determination.
6.2 Defense of City. In the event a suit is brought against the City under circumstances where
this agreement to indemnify applies, Company at its sole cost and expense shall defend the City in such
suit if written notice thereof is promptly given to Company within a period wherein Company is not
prejudiced by lack of such notice. If Company is required to indemnify and defend, it will thereafter have
control of such litigation, but Company may not settle such litigation without the consent of the City,
which consent shall not be unreasonably withheld. This section is not, as to third parties, a waiver of any
defense or immunity otherwise available to the City and Company, in defending any action on behalf of
the City, shall be entitled to assert in any action every defense or immunity that the City could assert in
its own behalf.
SECTION 7. VACATION OF PUBLIC WAYS.
The City shall give Company at least two weeks prior written notice of a proposed vacation of a
Public Way. Except where required for a City improvement project, the vacation of any Public Way, after
the installation of Electric Facilities, shall not operate to deprive Company of its lights to operate and
maintain such Electric Facilities, until the reasonable cost of relocating the same and the loss and expense
resulting from such relocation are first paid to Company. In no case, however, shall City be liable to
Company for failure to specifically preserve a right-of-way under Minnesota Statutes, Section 160.29.
SECTION 8. CHANGE INFORM OF GOVERNMENT.
Any change in the form of government of the City shall not affect the validity of this Ordinance.
Any governmental unit succeeding the City shall, without the consent of Company, succeed to all of the
rights and obligations of the City provided in this Ordinance.
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SECTION 9. FRANCHISE FEE.
9.1 Fee Schedule. During the term of the franchise hereby granted, and in lieu of any permit
or other fees being imposed on Company, the City may impose on Company a franchise fee by
collecting the amounts indicated in a Fee Schedule set forth in a separate ordinance from each
customer in the designated Company Customer Class. The parties have agreed that the franchise fee
collected by the Company and paid to the City in accordance with this Section 9 shall not exceed the
following amounts.
Class
Residential
Sm C & I — Non-Dem
Sm C & I — Demand
Large C & I
Public Street Ltg
Muni Pumping —N/D
Muni Pumping — Dem
Fee Per Premise Per Month
9.2 Separate Ordinance. The franchise fee shall be imposed by a separate ordinance
duly adopted by the City Council, which ordinance shall not be adopted until at least 90 days after
written notice enclosing such proposed ordinance has been served upon Company by certified mail.
The fee shall not become effective until the beginning of a Company billing month at least 90 days
after written notice enclosing such adopted ordinance has been served upon Company by certified
mail. Section 2.5 shall constitute the sole remedy for solving disputes between Company and the City
in regard to the interpretation of, or enforcement of, the separate ordinance. No action by the City
to implement a separate ordinance will commence until this Ordinance is effective. A separate
ordinance which imposes a lesser franchise fee on the residential class of customers than the maximum
amount set forth in Section 9.1 above shall not be effective against Company unless the fee imposed
on each other customer classification is reduced proportionately in the same or greater amount per
class as the reduction represented by the lesser fee on the residential class.
9.3 Terms Defined. For the purpose of this Section 9, the following definitions apply:
9.3.1 "Customer Class" shall refer to the classes listed on the Fee Schedule and as
defined or determined in Company's electric tariffs on file with the Commission.
9.3.2 "Fee Schedule" refers to the schedule in Section 9.1 setting forth the various
customer classes from which a franchise fee would be collected if a separate ordinance were
implemented immediately after the effective date of this franchise agreement. The Fee Schedule in
the separate ordinance may include new Customer Class added by Company to its electric tariffs after
the effective date of this franchise agreement.
9.4 Collection of the Fee. The franchise fee shall be payable quarterly and shall be based
on the amount collected by Company doting complete billing months during the period for which
payment is to be made by imposing a surcharge equal to the designated franchise fee for the applicable
customer classification in all customer billings for electric service in each class. The payment shall be due
the last business day of the month following the period for which the payment is made. The franchise
fee may be changed by ordinance from time to time; however, each change shall meet the same notice
requirements and not occur more often than annually and no change shall requite a collection from any
customer for electric service in excess of the amounts specifically permitted by this Section 9. The time
and manner of collecting the franchise fee is subject to the approval of the Commission. No franchise
fee shall be payable by Company if Company is legally unable to first collect an amount equal to the
franchise fee from its customers in each applicable class of customers by imposing a surcharge in
Company's applicable rates for electric seiwice. Company may pay the City the fee based upon the
surcharge billed subject to subsequent reductions to account for uncollectibles, refunds and correction of
erroneous billings. Company agrees to make its records available for inspection by the City at reasonable
times provided that the City and its designated representative agree in writing not to disclose any
information which would indicate the amount paid by any identifiable customer or customers or any
other information regarding identified customers.
9.5 Equivalent Fee Requirement. The separate ordinance imposing the fee shall not be
effective against Company unless it lawfully imposes and the City monthly or more often collects a fee or
tax of the same or greater equivalent amount on the receipts from sales of energy within the City by any
other energy supplier, provided that, as to such a supplier, the City has the authority to require a franchise
fee or to impose a tax under Minnesota Statute, Section 216B.36. The "same or greater equivalent
amount" shall be measured, if practicable, by comparing amounts collected as a franchise fee from each
similar customer, or by comparing, as to similar customers the percentage of the annual bill represented
by the amount collected for franchise fee purposes. The franchise fee or tax shall be applicable to energy
sales for any energy use related to heating, cooling or lighting, or to run machinery and appliances, but
shall not apply to energy sales for the purpose of providing fuel for vehicles. If the Company specifically
consents in writing to a franchise or separate ordinance collecting or failing to collect a fee from another
energy supplier in contravention of this Section 9.5, the foregoing conditions will be waived to the extent
of such written consent.
SECTION 10. PROVISIONS OF ORDINANCE.
10.1 Sever__ability. Every section, provision, or part of this Ordinance i declared separate
from every other section, provision, or part and if any section, provision, or part shall be held invalid,
it shall not affect any other section, provision, or part. Where a provision of any other City ordinance
conflicts with the provi ions of this Ordinance, the provisions of this Ordinance shall prevail.
10.2 Limitation onlApplic� bility. This Ordinance constitutes a franchise agreement bettiveen
the City and Company as the only parties, and no provision of this franchise shall in any way inure to
the benefit of any third person (including the public at large) so as to constitute any such person as a
third party beneficiary of the agreement or of any one or more of the terms hereof, or otherwise give
rise to any cause of action in any person not a party hereto.
SECTION 11, AMENDMENT PROCEDURE.
Either party to this franchise agreement may at any time propose that the agreement be amended
to address a subject of concern and the other party will consider whether it agrees that the amendment i
mutually appropriate. If an amendment is agreed upon, this Ordinance may be amended at any time by
the City passing a subsequent ordinance declaring the provisions of the amendment, which
amendatory ordinance shall become effective upon the filing of Company's written consent thereto
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with the City Clerk witivn 90 days after the date of final passage by the City of the amendatory
ordinance.
SECTION 12. PREVIOUS FRANCHISES SUPERSEDED.
This franchise supersedes any previous electt7c franchise granted to Company or its predecessor.
Passed and approved: October 255 2021.
Audra Etzel, City Clerk
Date Published.
Mayor Jessica
E
SUMMARY ORDINANC
2021*m20
NO,
AN ORDINANC GRANTING A NONEXC USIVE
Jc_j A
ELF .TRIC FRANCHISE TO NORTHERN STA ES POW R COMPANY,
MINNESOTA CORPORATION
NO IC IS EREBY GIV N
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adopted by the City Council Otsego, i
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that, ■
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M 11,11,11,111111111111IIIIIIIIIIIIIIIII P 1� 2021 ,the following sthe ordinance a been prepared for publication:
Ordi'nance No. grants a nonexclusi"ve electrl"c r and s for telms
there of e
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printed c the entire iis afor i any person during the City
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Audra Etzel,
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AFFIDAVIT OF PUBLICATION
STATE OF MINNESOTA ) ss
COUNTY OF SHERBURNE
Karen Nelson being duly sworn on an oath,
states or affirms that he/she is the Publisher's
Designated Agent of the newspaper(s) known
as:
Star News
with the known office of issue being located
in the county of:
SHERBURNE
with additional circulation in the counties of:
WRIGHT
and has full knowledge of the facts stated
below:
(A) The newspaper has complied with all of
the requirements constituting qualifica-
tion as a qualified newspaper as provided
by Minn. Stat. §331A.02.
(B) This Public Notice was printed and pub-
lished in said newspaper(s) once each
week, for 1 successive week(s); the first
insertion being on 10/30/2021 and the last
insertion being on 10/30/2021.
MORTGAGE FORECLOSURE NOTICES
Pursuant to Minnesota Stat. §580.033
relating to the publication of mortgage
foreclosure notices: The newspaper complies
with the conditions described in §580.033,
subd. 1, clause (1) or (2). If the newspaper's
known office of issue is located in a county
adjoining the county where the mortgaged
premises or some part of the mortgaged
premises described in the notice are located,
a substantial portion of the newspaper's
circulation is in the latter county.
By: Ka4 2M At_loj ff1
Designated Agent
Subscribed and sworn to or affirmed before
me on 10/30/2021 by Karen Nelson.
Notary Public
eaorarrne�r
" DARLENE MARIE MACPHERSON
NOTARY PUBLIC - MINNESOTA
My Cam►rilsslon Exphna Jan 31, 2024
Rate Information:
(1) Lowest classified rate paid by commercial users
for comparable space:
$23.00 per column inch
Ad ID 1178487
CITY OF OTSEGO
SUMMARY ORDINANCE
NO. 2021-20
AN ORDINANCE GRANTING
A NONEXCLUSIVE
ELECTRIC FRANCHISE
TO NORTHERN STATES
POWER COMPANY, A
MINNESOTA CORPORATION
NOTICE IS HEREBY GIVEN
that, on October 25, 2021, Ordi-
nance No. 2021-20 was adopted
by the City Council of the City of
Otsego, Minnesota.
NOTICE IF FURTHER GIVEN
that, because of the lengthy nature
of Ordinance No. 2021-20, the fol-
lowing summary of the ordinance
has been prepared for publication:
Ordinance No. 2021-20 grants a
nonexclusive electric franchise and
sets for the terms thereof.
A printed copy of the entire Ordi-
nance is available for inspection by
any person during the City Clerk's
regular office hours.
APPROVED for publication
by the City Council of the City of
Otsego, Minnesota, this 25th day
of October, 2021.
CITY OF OTSEGO
By Jessica Stockamp,
Mayor
ATTEST: Audra Etzel,
City Clerk
Published in the
Star News
October 30, 2021
1178487
ACCEPTANCE OF ELECTRIC FRANCHISE
ORDINANCE NO. 2021-20
CITY OF OTSEGO, WRIGHT COUNTY, MINNESOTA
WHEREAS, the City Council of the City of Otsego, Wright County, Minnesota, on
October 25, 2021 passed and adopted Ordinance No. 2021-20, entitled:
AN ORDINANCE GRANTING TO NORTHERN STATES POWER COMPANY, A
MINNESOTA CORPORATION, ITS SUCCESSORS AND ASSIGNS, PERMISSION
TO CONSTRUCT, OPERATE, REPAIR AND MAINTAIN IN THE CITY OF
OTSEGO, MINNESOTA, AN ELECTRIC DISTRIBUTION SYSTEM AND
TRANSMISSION LINES, INCLUDING NECESSARY POLES, LINES, FIXTURES
AND APPURTENANCES, FOR THE FURNISHING OF ELECTRIC ENERGY TO
THE CITY, ITS INHABITANTS, AND OTHERS, AND TO USE THE PUBLIC
GROUNDS AND PUBLIC WAYS OF THE CITY FOR SUCH PURPOSES.
which Ordinance was duly published according to law on October 30, 2021 in the Star News, a
newspaper circulated in and serving as the legal newspaper for the City of Otsego, Wright County,
and State of Minnesota, and which Ordinance is not effective unless accepted in writing by
Northern States Power Company, a Minnesota corporation.
NOW THEREFORE, Northern States Power Company, a Minnesota corporation for
itself and its successors and assigns, does hereby accept all the terms and conditions of said
Ordinance.
IN WITNESS WHEREOF, Northern States Power Company, a Minnesota corporation
has caused this document to be executed in its corporate name by its duly authorized persons and
its corporate seal to be hereto affixed November 1, 2021.
Attest: Northern States Power Company, a Minnesota
corporation
By:
Kristin Westlund
Assistant Secretary
Trisha Duncan
Director, Community Relations