The purpose of the Agreement is for the City to grant a non-exclusive franchise to Powder River Energy Corporation to provide electrical services to the residents of Antelope Valley and Crestview Estates following annexation. The term of the Agreement is from January 1, 2018 through December 31, 2022 (“Primary Term”).
The Franchise Fee shall be equal to a percentage, to be determined solely by the City, of the Company's Gross Revenues from the Franchise Area. The initial Franchise Fee upon execution of this Agreement shall be 2%. Franchise Fee(s) more than two percent (2%) will be shown as a line item charge attributable to the City on the monthly bill for Residents in the Franchise Area. All Franchise Fee adjustments shall be approved by Resolution. A Public Hearing shall take place prior to consideration of the Resolution to consider the Franchise Fee adjustment.
During the Franchise, the Company shall pay the Franchise Fee as a percentage of the Company's Gross Revenues from the Franchise Area on a monthly basis on or before the first day of each month. The first payment shall be due on March 1, 2018.
If the Franchise is terminated after the Primary Term, the City will have no obligation to compensate Basin Electric Power Cooperative or any other electrical supplier. Upon termination, the City is obligated to purchase Powder River Energy Corporation’s facilities at the depreciated rate in accordance with the WAM Agreement. |