Common use of Franchise Fee Clause in Contracts

Franchise Fee. a) Calculation of Franchise Fee In consideration of the rights granted pursuant to paragraph 4 and the mutual covenants herein and subject to Commission approval the Company agrees to collect from Consumers and pay to the Municipality a franchise fee. The Parties agree s. 360(4) of the MGA, as amended, does not apply to the calculation of the franchise fee in this Agreement. For each calendar year the franchise fee will be calculated as a percentage of the Company’s actual total revenue derived from the Delivery Tariff, including without limitation the fixed charge, base energy charge, demand charge, but excluding the cost of Natural Gas (being the calculated revenues from the Natural Gas cost recovery rate rider or the deemed cost of Natural Gas and Natural Gas supply related riders) in that year for Natural Gas Distribution Service within the Municipal Service Area. For the first (1st) calendar year or portion thereof of the Term of this Agreement, the franchise fee percentage will be percent ( %). By no later than September 1st of each year, the Company will: i. advise the Municipality in writing of the total revenues that were derived from the Delivery Tariff within the Municipal Service Area for the prior calendar year; and ii. with the Municipality’s assistance, provide in writing an estimate of total revenues to be derived from the Delivery Tariff within the Municipal Service Area for the next calendar year. b) Adjustment to the Franchise Fee At the option of the Municipality and subject to Commission approval, the franchise fee percentage may be changed annually by providing written notice to the Company. If the Municipality wishes to amend the franchise fee percentage, then the Municipality will, no later than November 1st in any year of the Term, advise the Company in writing of the franchise fee percentage to be charged for the following calendar year. Upon receipt of notice, the Company will work with the Municipality to ensure all regulatory requirements are satisfied on a timely basis and agrees to use best efforts to obtain approval from the Commission for implementation of the proposed franchise fee percentage as and from January 1st of the following calendar year. If the Municipality provides written notice at any other time with respect to a franchise fee change, the Company will implement the new franchise fee percentage as soon as reasonably possible. c) Notice to Change Franchise Fee Prior to implementing any change to the franchise fee, the Municipality will notify its intent to change the level of the franchise fee and the resulting effect such change will have on an average residential Consumer’s annual Natural Gas ▇▇▇▇ through publication of a notice once in the newspaper with the widest circulation in the Municipal Service Area at least forty five (45) days prior to implementing the revised franchise fee. A copy of the published notice will be filed with the Commission. d) Payment of Franchise Fee The Company will pay the Municipality the franchise fee amount billed to Consumers on a monthly basis within forty-five (45) days after billing Consumers.

Franchise Fee. a) Calculation of Franchise Fee In consideration of the rights granted pursuant to paragraph 4 and the mutual covenants herein and subject to Commission approval the Company agrees to collect from Consumers and pay to the Municipality a franchise fee. The Parties agree s. 360(4) of the MGA, as amended, does not apply to the calculation of the franchise fee in this Agreement. For each calendar year the franchise fee will be calculated as a percentage of the Company’s actual total revenue derived from the Delivery Tariff, including without limitation the fixed charge, base energy charge, demand charge, but excluding the cost of Natural Gas (being the calculated revenues from the Natural Gas cost recovery rate rider or the deemed cost of Natural Gas and Natural Gas supply related riders) in that year for Natural Gas Distribution Service within the Municipal Service Area. For the first (1st) calendar year or portion thereof of the Term of this Agreement, the franchise fee percentage will be seventeen percent ( (17%). By no later than September 1st of each year, the Company will: i. advise the Municipality in writing of the total revenues that were derived from the Delivery Tariff within the Municipal Service Area for the prior calendar year; and ii. with the Municipality’s assistance, provide in writing an estimate of total revenues to be derived from the Delivery Tariff within the Municipal Service Area for the next calendar year. b) Adjustment to the Franchise Fee At the option of the Municipality and subject to Commission approval, the franchise fee percentage may be changed annually by providing written notice to the Company. If the Municipality wishes to amend the franchise fee percentage, then the Municipality will, no later than November 1st in any year of the Term, advise the Company in writing of the franchise fee percentage to be charged for the following calendar year. Upon receipt of notice, the Company will work with the Municipality to ensure all regulatory requirements are satisfied on a timely basis and agrees to use best efforts to obtain approval from the Commission for implementation of the proposed franchise fee percentage as and from January 1st of the following calendar year. If the Municipality provides written notice at any other time with respect to a franchise fee change, the Company will implement the new franchise fee percentage as soon as reasonably possible. c) Notice to Change Franchise Fee Prior to implementing any change to the franchise fee, the Municipality will notify its intent to change the level of the franchise fee and the resulting effect such change will have on an average residential Consumer’s annual Natural Gas ▇▇▇▇ bill through publication of a notice once in the newspaper with the widest circulation in the Municipal Service Area at least forty five (45) days prior to implementing the revised franchise fee. A copy of the published notice will be filed with the Commission. d) Payment of Franchise Fee The Company will pay the Municipality the franchise fee amount billed to Consumers on a monthly basis within forty-five (45) days after billing Consumers.

Franchise Fee. a) Calculation of Franchise Fee In consideration of the rights granted pursuant to paragraph 4 and the mutual covenants herein and subject to Commission approval the Company agrees to collect from Consumers and pay to the Municipality a franchise fee. The Parties agree s. 360(4) of the MGA, as amended, does not apply to the calculation of the franchise fee in this Agreement. For each calendar year the franchise fee will be calculated as a percentage of the Company’s actual total revenue derived from the Delivery Tariff, including without limitation the fixed charge, base energy charge, demand charge, but excluding the cost of Natural Gas (being the calculated revenues from the Natural Gas cost recovery rate rider or the deemed cost of Natural Gas and Natural Gas supply related riders) in that year for Natural Gas Distribution Service within the Municipal Service Area. For the first (1st) calendar year or portion thereof of the Term of this Agreement, the franchise fee percentage will be nineteen percent ( (19%). By no later than September 1st of each year, the Company will: i. advise the Municipality in writing of the total revenues that were derived from the Delivery Tariff within the Municipal Service Area for the prior calendar year; and ii. with the Municipality’s assistance, provide in writing an estimate of total revenues to be derived from the Delivery Tariff within the Municipal Service Area for the next calendar year. b) Adjustment to the Franchise Fee At the option of the Municipality and subject to Commission approval, the franchise fee percentage may be changed annually by providing written notice to the Company. If the Municipality wishes to amend the franchise fee percentage, then the Municipality will, no later than November 1st in any year of the Term, advise the Company in writing of the franchise fee percentage to be charged for the following calendar year. Upon receipt of notice, the Company will work with the Municipality to ensure all regulatory requirements are satisfied on a timely basis and agrees to use best efforts to obtain approval from the Commission for implementation of the proposed franchise fee percentage as and from January 1st of the following calendar year. If the Municipality provides written notice at any other time with respect to a franchise fee change, the Company will implement the new franchise fee percentage as soon as reasonably possible. c) Notice to Change Franchise Fee Prior to implementing any change to the franchise fee, the Municipality will notify its intent to change the level of the franchise fee and the resulting effect such change will have on an average residential Consumer’s annual Natural Gas ▇▇▇▇ through publication of a notice once in the newspaper with the widest circulation in the Municipal Service Area at least forty five (45) days prior to implementing the revised franchise fee. A copy of the published notice will be filed with the Commission. d) Payment of Franchise Fee The Company will pay the Municipality the franchise fee amount billed to Consumers on a monthly basis within forty-five (45) days after billing Consumers.

Franchise Fee. a) Calculation of Franchise Fee In consideration of the rights granted pursuant to paragraph 4 and the mutual covenants herein and subject to Commission approval the Company agrees to collect from Consumers and pay to the Municipality a franchise fee. The Parties agree s. 360(4) of the MGA, as amended, does not apply to the calculation of the franchise fee in this Agreement. For each calendar year the franchise fee will be calculated as a percentage of the Company’s actual total revenue derived from the Delivery Tariff, including without limitation the fixed charge, base energy charge, demand charge, but excluding the cost of Natural Gas (being the calculated revenues from the Natural Gas cost recovery rate rider or the deemed cost of Natural Gas and Natural Gas supply related riders) in that year for Natural Gas Distribution Service within the Municipal Service Area. For the first (1st) calendar year or portion thereof of the Term of this Agreement, the franchise fee percentage will be eight percent ( (8.00%). By no later than September 1st of each year, the Company will: i. advise the Municipality in writing of the total revenues that were derived from the Delivery Tariff within the Municipal Service Area for the prior calendar year; and ii. with the Municipality’s assistance, provide in writing an estimate of total revenues to be derived from the Delivery Tariff within the Municipal Service Area for the next calendar year. b) Adjustment to the Franchise Fee At the option of the Municipality and subject to Commission approval, the franchise fee percentage may be changed annually by providing written notice to the Company. If the Municipality wishes to amend the franchise fee percentage, then the Municipality will, no later than November 1st in any year of the Term, advise the Company in writing of the franchise fee percentage to be charged for the following calendar year. Upon receipt of notice, the Company will work with the Municipality to ensure all regulatory requirements are satisfied on a timely basis and agrees to use best efforts to obtain approval from the Commission for implementation of the proposed franchise fee percentage as and from January 1st of the following calendar year. If the Municipality provides written notice at any other time with respect to a franchise fee change, the Company will implement the new franchise fee percentage as soon as reasonably possible. c) Notice to Change Franchise Fee Prior to implementing any change to the franchise fee, the Municipality will notify its intent to change the level of the franchise fee and the resulting effect such change will have on an average residential Consumer’s annual Natural Gas ▇▇▇▇ bill through publication of a notice once in the newspaper with the widest circulation in the Municipal Service Area at least forty five (45) days prior to implementing the revised franchise fee. A copy of the published notice will be filed with the Commission. d) Payment of Franchise Fee The Company will pay the Municipality the franchise fee amount billed to Consumers on a monthly basis within forty-five (45) days after billing Consumers.

Franchise Fee. a) Calculation of Franchise Fee In consideration of the rights granted pursuant to paragraph 4 and the mutual covenants herein and subject to Commission approval the Company agrees to collect from Consumers and pay to the Municipality a franchise fee. The Parties agree s. 360(4) of the MGA, as amended, does not apply to the calculation of the franchise fee in this Agreement. For each calendar year the franchise fee will be calculated as a percentage of the Company’s actual total revenue derived from the Delivery Tariff, including without limitation the fixed charge, base energy charge, demand charge, but excluding the cost of Natural Gas (being the calculated revenues from the Natural Gas cost recovery rate rider or the deemed cost of Natural Gas and Natural Gas supply related riders) in that year for Natural Gas Distribution Service within the Municipal Service Area. For the first (1st) calendar year or portion thereof of the Term of this Agreement, the franchise fee percentage will be percent ( %). By no later than September 1st of each year, the Company will: i. i) advise the Municipality in writing of the total revenues that were derived from the Delivery Tariff within the Municipal Service Area for the prior calendar year; and ii. ) with the Municipality’s assistance, provide in writing an estimate of total revenues to be derived from the Delivery Tariff within the Municipal Service Area for the next calendar year. b) Adjustment to the Franchise Fee At the option of the Municipality and subject to Commission approval, the franchise fee percentage may be changed annually by providing written notice to the Company. If the Municipality wishes to amend the franchise fee percentage, then the Municipality will, no later than November 1st in any year of the Term, advise the Company in writing of the franchise fee percentage to be charged for the following calendar year. Upon receipt of notice, the Company will work with the Municipality to ensure all regulatory requirements are satisfied on a timely basis and agrees to use best efforts to obtain approval from the Commission for implementation of the proposed franchise fee percentage as and from January 1st of the following calendar year. If the Municipality provides written notice at any other time with respect to a franchise fee change, the Company will implement the new franchise fee percentage as soon as reasonably possible. c) Notice to Change Franchise Fee Prior to implementing any change to the franchise fee, the Municipality will notify its intent to change the level of the franchise fee and the resulting effect such change will have on an average residential Consumer’s annual Natural Gas ▇▇▇▇ through publication of a notice once in the newspaper with the widest circulation in the Municipal Service Area at least forty five (45) days prior to implementing the revised franchise fee. A copy of the published notice will be filed with the Commission. d) Payment of Franchise Fee The Company will pay the Municipality the franchise fee amount billed to Consumers on a monthly basis within forty-five (45) days after billing Consumers.

Franchise Fee. a) Calculation of Franchise Fee In Grantee shall pay to Town in consideration of the rights granted pursuant grant of this Franchise a sum equal to paragraph 4 and the mutual covenants herein and subject to Commission approval the Company agrees to collect from Consumers and pay to the Municipality a franchise fee. The Parties agree s. 360(4two percent (2%) of the MGA, as amended, does not apply to the calculation all revenues of the franchise fee in this Agreement. For each calendar year the franchise fee will be calculated as a percentage of the Company’s actual total revenue derived from the Delivery TariffGrantee, including without limitation the fixed charge, base energy charge, demand chargeRegulatory Assessments, but excluding the cost of Natural Gas (being the calculated revenues transaction privilege taxes and similar governmental impositions, from the Natural Gas cost recovery rate rider or retail sales and/or delivery by it of electric energy and other charges for services attendant to the deemed cost retail sale and/or delivery of Natural Gas and Natural Gas supply related riders) in that year for Natural Gas Distribution Service electric energy delivered through ▇▇▇▇▇▇▇’s electric distribution system within the Municipal Service Areapresent and any future corporate limits of Town, as shown by ▇▇▇▇▇▇▇’s billing records. Grantee shall not, however, pay said franchise fee on revenues charged to Grantee’s retail customers by third party electric service providers. Said payments shall be in lieu of any and all fees, charges or exaction of any kind otherwise assessed by Town in any way associated with ▇▇▇▇▇▇▇’s use of the rights-of-way, including but not limited to, the construction of Grantee’s facilities hereunder or for inspections thereof during the term of this Franchise. For the first (1st) calendar year or portion thereof purpose of the Term of this Agreementverifying amounts payable hereunder, the franchise fee percentage will books and records of Grantee shall be percent ( %)subject to inspection by duly authorized officers or representatives of Town at reasonable times. By no later than September 1st Beginning November 26, 2012, payment as described in the preceding paragraphs shall be payable in quarterly amounts within 30 days after the end of each year, calendar quarter (“the Company will: i. advise the Municipality in writing of the total revenues that were derived from the Delivery Tariff within the Municipal Service Area for the prior calendar year; and ii. with the Municipality’s assistance, provide in writing an estimate of total revenues to be derived from the Delivery Tariff within the Municipal Service Area for the next calendar year. b) Adjustment to the Franchise Fee At the option of the Municipality and subject to Commission approval, the franchise fee percentage may be changed annually by providing written notice to the CompanyDelinquent Date”). If the Municipality wishes payment is later than the Delinquent Date, a 2% penalty will be added, and interest of 1.5% monthly shall occur on the entire amount due. The penalty and interest may be waived by Town if the failure to amend pay by the Delinquent Date was the result of a casualty that renders Grantee unable to compute the liability from business records; provided, however, Grantee in such event must file an estimated payment by the Delinquent Date to avoid penalty and interest charges. Based on a history of prior on-time payments, Town may waive the penalty and interest. Notwithstanding the provisions of this Franchise, if during the term of this Franchise Grantee enters into any electric franchise with any other municipality in Arizona during the term of this Franchise that provides for a higher percentage of Grantee’s revenues than two percent (2%) or includes more categories of revenues than set forth in this Franchise, Grantee shall notify Town Council of such higher percentage or expanded revenue base. Town Council, at its sole discretion, shall have the option to, as applicable: (i) increase Grantee’s franchise fee to the higher percentage rate; and/or (ii) include other revenue categories set forth in the franchise fee percentage, then the Municipality will, no later than November 1st in any year of the Term, advise the Company in writing of the franchise fee percentage to be charged for the following calendar year. Upon receipt of notice, the Company will work agreement Grantee has with the Municipality to ensure all regulatory requirements are satisfied on a timely basis and agrees to use best efforts to obtain approval from the Commission for implementation other entity of the proposed franchise fee percentage as and from January 1st of the following calendar yearthis State. If the Municipality provides written notice at any other time with respect to a franchise fee changeFollowing Town Council’s action, the Company will implement the new franchise fee percentage as soon as reasonably possible. c) Notice to Change Franchise Fee Prior to implementing any change to the franchise fee, the Municipality will notify its intent to change the level of the franchise fee and the resulting effect such change will have on an average residential Consumer’s annual Natural Gas ▇▇▇▇▇▇▇ through publication of agrees to henceforth pay to Town a notice once in the newspaper with the widest circulation in the Municipal Service Area at least forty five (45) days prior to implementing the revised franchise fee. A copy of the published notice will be filed with the Commission. d) Payment of Franchise Fee The Company will pay the Municipality the new franchise fee amount billed at the higher franchise percentage or to Consumers on a monthly basis within forty-five (45) days after billing Consumersinclude the additional revenue categories.

Franchise Fee. a) Calculation of Franchise Fee In consideration of the rights granted pursuant to paragraph 4 and the mutual covenants herein and subject to Commission approval the Company agrees to collect from Consumers and pay to the Municipality a franchise fee. The Parties agree s. 360(4) of the MGA, as amended, does not apply to the calculation of the franchise fee in this Agreement. For each calendar year the franchise fee will be calculated as a percentage of the Company’s Company s actual total revenue derived from the Delivery Tariff, including without limitation the fixed charge, base energy charge, demand charge, but excluding the cost of Natural Gas (being the calculated revenues from the Natural Gas cost recovery rate rider or the deemed cost of Natural Gas and Natural Gas supply related riders) in that year for Natural Gas Distribution Service within the Municipal Service Area. For the first (1st) calendar year or portion thereof of the Term of this Agreement, the franchise fee percentage will be twenty-five percent ( (25%). By no later than September 1st of each year, the Company will: i. advise the Municipality in writing of the total revenues that were derived from the Delivery Tariff within the Municipal Service Area for the prior calendar year; and ii. with the Municipality’s assistance, provide in writing an estimate of total revenues to be derived from the Delivery Tariff within the Municipal Service Area for the next calendar year. b) Adjustment to the Franchise Fee At the option of the Municipality and subject to Commission approval, the franchise fee percentage may be changed annually by providing written notice to the Company. If the Municipality wishes to amend the franchise fee percentage, then the Municipality will, no later than November 1st in any year of the Term, advise the Company in writing of the franchise fee percentage to be charged for the following calendar year. Upon receipt of notice, the Company will work with the Municipality to ensure all regulatory requirements are satisfied on a timely basis and agrees to use best efforts to obtain approval from the Commission for implementation of the proposed franchise fee percentage as and from January 1st of the following calendar year. If the Municipality provides written notice at any other time with respect to a franchise fee change, the Company will implement the new franchise fee percentage as soon as reasonably possible. c) Notice to Change Franchise Fee Prior to implementing any change to the franchise fee, the Municipality will notify its intent to change the level of the franchise fee and the resulting effect such change will have on an average residential Consumer’s annual Natural Gas ▇▇▇▇ through publication of a notice once in the newspaper with the widest circulation in the Municipal Service Area at least forty five (45) days prior to implementing the revised franchise fee. A copy of the published notice will be filed with the Commission. d) Payment of Franchise Fee The Company will pay the Municipality the franchise fee amount billed to Consumers on a monthly basis within forty-five (45) days after billing Consumers.