The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-12-29
CITY W. US
NEW FRANCHISE
The BEST YET
MANY NOVEL FEATURES IN PEND
ING ELECTRIC ORDINANCE.
In the Way Of Rate Regulation, Tax
Provisions and Relations with the
City, the Measure Is in Strong Con-
trast with the Electric Franchises
Now in Effect. 81

gr- y f ,
Sixteen months ago there was SUBJ
franchise renewal for the Minneapolis +
General Electric company which was not
acceptable to that company, nor was it
favorably regarded by the council or the
large consumers OF energy Of the city at
large. This called the attention of the
councilmen and business interests to the
matter OF franchises for electric: CON
Germs and a study =: conditions obtain
ing in other cities Of the country result
ed. Early in December the Minnesota
POWER q Trolley company, represented
by former Governor Lind, J. L. Kiichli
and others, submitted request for a
franchise offering to furnish electricity
rate than that now obtaining.
The Minneapolis Retailers associa-
tion, comprising in it's membership largeI
business interests Of the city and large
consumers of electrical energy interested
IN the price question, made series of
to, be heard BY. the council committee
when the Kiichli application for fran
chlse came up for consideration. They
had dual purpose. The first was to
look out for the scale of prices and to
safeguard the city's interests as we'll.
The ccuncl! committee granted the re-
quest and N. F. Hawley, as their at
torney, was present at all meetings of
the committee and acted for the retail
ers. There were protracted sessions of
the committee with members of the new
company, the city attorney and the at
torney of the retailers association, and
every phase of the franchise was con-.
s1dered from the various standpoints
of the interested parties, These DELHI
eratlons resulted in the franchise pre-
scented last Friday night, which is de-
clared to be distinct step in advance
OF any OF the kind now in existence in
the cities of the country.
- ;. By Water Power.
= The FRANCHISE grants to the Minnesota
Power & Trolley company, for thirty
years, the right to bring electricity into
the city or generate it here and distri-
butte it to the city or private consumers
at ahe afRS 4 ea fH the Of
eided later, but with a maximum of
llo,OOO and a minimum of 5000 horse
power. The ordinance granting the
FRANCHISE is unique in a way, as the
grant is made in a single paragraph on
me hrst page, while the remainder Of
the ,voluminous document is given, over
made at the suggestion Of the councilmen
ana the retailers. Among these provis-
ions are the requirements that all pave
ments and roadways must be replaced
at the expense Of the company The
company must at its own expense pro
v1de. furnish and maintain wires for fire
| alarms and police purposes. The city
must always have priority Of service and
minneapolis consumers have first CALI:
on on, energy over the inhabitants Of any
oIher cities or towns where the com.
pany may seek to transact business.
1a Inc FRANCHISE ls not exclusive and is
pot only SUBJECT to present regulations
i put go those OF the future, made, by
ordinance. When extraordinary use Of
the streets, such as:housemoving, neces
States the cutting Of wires, the work
must be done at the expense of tic
4 company. There is a strict prohibition
against consolidation with other com
Panes, In any form. A director of this
company cannot become a stockholdel
Revenue for City,. 49,.
/ Revenue to the city is promised b,
the payment of a gross receipt tax il
: addition to all; other. taxes Regularly
levied by city and state. This gross re-
celpt. tax will be l,rper" cent for tn
tirst ten years; 3 per cent for the sec
ond ten years and S per cent for tn
payable while the company is not fur
nishing light or power to the city a
the rates specified in the franchise
Should a contract with the CITY TO-
street lighting be made the tax cease
| to be operative, as it is believed tn
). city will then get: the same or bette
). returns from the lessened cost Of tn.
i street lighting. The franchise bears {
. pany shall be subject. to the inspectio,
Of the city controller at any time anc
that an annual statement of the re
!, ceipts and disbursements, in detail
shall be made to the city authorities.
). The company agrees. to furnish tt
the city at switchboard in North Min
: neapolis 1000 horsepower. of electrical
want, at not TO exceed $25 per horse
power per year. This is a maximum
!, figure and may be reduced in competi
, : Or, If the city prefers, the compan,
must furnish street lamps on an ali
!. night, every-night schedule, not exceed
; ing 1,400 lamps in number, at pric
not to exceed $3.50 per light per an
| mum. The present rate paid by the cit,
is 1914 per light per annum-. The specif
requirements as to plant. and appli
: ances are clearly set forth in the fran
: chise.
Rates for light and power for privat
consumption are fixed at the maximum
but these prices may be lessened shoul!!
tion in the effort to secure business
The highest prices possible for tn
company to charge under this schedul
are outlined in the grant. as follows:
For Lighting $3.50 1
An RsF
Toe per kilowatt on bills not exceeding ....$ 70
Sc per kilowatt on bills not exceeding. 80
Sc per kilowatt on bills not exceeding. 30
&c per kilowatt on bills not exceeding -. Loo
&c per kilowatt on bills not exceeding. j.. 200
&c per kilowatt on bills exceeding. 400
- For Power i
Be per kilowatt on bills not exceeding. s. 10
4 4c per kilowatt on bills not exceeding. -. SO