O-1958-532 - Laserfiche WebLink

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Exhibit "A" • Franchise Payment Procedures 1. The Franchise Payment Procedures described herein shall be effective from and after the date (i) Houston Lighting & Power Company ("HL&P") has received a final order of the Public Utility Commission of Texas ("PUC") in Docket No. 9850, approving the terms of the stipulation dated February 27, 1991 (the "Stipulation") and (ii) the City of La Porte ("La Porte") has acknowledged acceptance of the payment procedures described herein. The first payment due under these Franchise Payment Procedures will be paid the later of (i) thirty (30) days after a final order in Docket No. 9850, or (ii) the date such payments would become due under the provisions of Article XI of the Stipulation, and shall include all franchise fees due from January 1, 1991 through each calendar quarter prior to such final order. Thereafter, within forty-five (45) days after the end of each calendar quarter, HL&P will pay to La Porte an amount equal to the franchise fees that would be due for electric service rendered during the preceding calendar quarter. The quarterly franchise payments will be calculated as provided in Ordinance No. 532, net of franchise fees relating to municipal accounts, which will be handled under Paragraph 2 below. 2. For municipal electric service accounts in the name of La Porte a monthly credit will be applied to each such account in an amount equivalent to the amount of franchise fees included in base rate charges for each account. Franchise fees due in excess of this monthly credit (if any) will be paid at the end of the quarter. 3. No later than the date by which the franchise payment for the preceding calendar year is due pursuant to the terms of Ordinance No. 532, HL&P shall determine the total franchise fee due to La Porte for the preceding calendar year, including any additional amount owing, after taking into account the payments previously made and credits given. If any overpayment is made by HL&P, such overpayment shall be credited against the next franchise payment made by HL&P or shall be paid by La Porte to HL&P, if no subsequent payments are owed. 4. Upon at least sixty (60) days prior written notice to HL&P, La Porte shall have the right to request HL&P to suspend the payment procedures provided for herein, in which event HL&P shall resume making payments of franchise fees in the manner in effect as of the period immediately preceding the implementation of these Franchise Payment Procedures. 5. The Franchise Payment Procedures described herein are subject to modification pursuant to subsequent order of the PUC. If any aspect of these Franchise Payment Procedures is determined by any court or regulatory authority to be illegal, unauthorized or otherwise failing to satisfy the obligations of any party under the referenced Ordinance No. 532 or the order of the PUC approving the Stipulation is subsequently overturned in whole or in part, such procedures shall be terminated, and franchise payments shall thereafter be made as otherwise provided in said Ordinance.