City of Roseville, MI Electric Franchise

An ordinance to protect the public health, safety and welfare of the citizens of the City of Roseville, which provides for and grants a limited, nonexclusive revocable electric franchise to DTE Energy Marketing, Inc. and provides the terms and conditions associated with such franchise.

§ A385-2 Grant of franchise.

The City of Roseville, 29777 Gratiot Avenue, Roseville, Michigan 48066, referred to as "city" grants to DTE ENERGY MARKETING, INC., 101 North Main, Suite 300, Ann Arbor, Michigan 48104 referred to as "grantee," a limited, nonexclusive permission to market electricity through and over existing and future electrical lines operated and owned by another public utility and to conduct the local electric business as an electric power marketer and third-party supplier of electricity in the city for a period of five years.

§ A385-3 Conditions.

The following shall be strictly adhered to:

As an electric power marketer and third-party supplier of electricity, grantee will not directly transmit or supply electricity, nor impair or attempt to control or occupy any street, alley, public place nor engage in any construction in any public street, alley or other public place or right-of-way.

Grantee, to the fullest extent permitted by law, shall completely indemnify and hold harmless the city, its elected officials, officers, employees and contractors from any and all judgments, damages, decrees, losses, costs and expenses, which the city may incur or which may be legally obtained by the city for or by reason of the wrongful construction, maintenance or repair of the structures and equipment or the use and occupation of any highway, street, alley or other public place in the city by grantee, pursuant to the terms of this Ordinance or resulting from the exercise by the grantee of any of these privileges or the privileges of this Ordinance. Such indemnification shall extend to the costs of defense for attorneys as selected in the sole discretion of the city and shall apply to any and all claims, demands, or causes of action, whether deemed frivolous or otherwise.

The city may establish reasonable standards of service and marketing practices, prevent unjust discrimination and service and impose any other regulations as determined by the city to be conducive to public health, safety and welfare. grantee shall be, and shall remain, subject to all ordinances, rules and regulations of the city now in effect or which might be adopted.

Grantee shall reimburse the city for the city's costs associated with the issuance of the franchise, which costs are stipulated at $5,000.

Grantee shall provide a current list of customers, including name and address, to the Clerk for the city, which list shall be maintained as current during the term of this franchise.

§ A385-4 Rates.

Grantee may charge its customers for electricity and electrical services at rates mutually agreeable to grantee and the customer, subject to the parties' agreement that they will abide by all applicable federal and state laws and Michigan Public Service Commission regulations.

§ A385-5 Insurance.

Prior to commencing marketing electricity and furnishing service to customers, grantee shall obtain and maintain in full force and effect the best A-rated or better insurance company's insurance required by this section. Grantee shall be solely responsible for any deductible or self-insured retention. The purchase of such insurance shall not be in satisfaction of the grantee's duty to indemnify the city.

The following coverages shall be maintained:

(1)

Workers compensation insurance in accordance with all applicable statutes of the State of Michigan. Coverage shall include employers' liability coverage.

(2)

Commercial general liability insurance on an "occurrence" basis with limits of liability of not less than $1,000,000 per occurrence for bodily injury and personal injury and $1,000,000 per occurrence for property damage. Coverage shall include the following extensions:

(a)

Contractual liability.

(b)

Products and completed operations.

(c)

Independent contractors' coverage.

(d)

Broad form general liability extensions or equivalent.

(e)

Coverage for X, C and U hazards.

(3)

Motor vehicle liability coverage, including Michigan no-fault coverage for all vehicles used in performance of the contract, with limits not less than $1,000,000 per occurrence, combined single limit bodily injury and property damage.

Commercial general liability insurance and motor vehicle liability insurance shall include an endorsement indicating that the city and all elected and appointed officials, boards, commissions, officers and employees are named as additional insured. All insurance shall include an endorsement stating that the policy may not be canceled by the insurer or the intention not to renew stated by the insurer until 30 days after receipt by the city by certified or registered mail of a written notice of such intention to cancel or not renew directed to:

City Clerk, City of Roseville

29777 Gratiot Avenue

Roseville, Michigan 48066

Copies of the insurance policies provided hereunder shall be furnished to the Clerk for the City of Roseville.

§ A385-6 Most favored nation.

In the event that grantee or any of its affiliates or subsidiaries pays any fees, charges or other payment of any kind, directly or indirectly, on a periodic basis (monthly, quarterly, annually, etc.) for a franchise grant of permission to operate from any municipality to operate in Michigan then grantee shall pay to the city a fee computed in the same manner to the city. If such fee is computed on a lineal measure or unit basis, the same unit price shall be applicable when paid to the city. A one-time charge prior to and for attorney fees or administrative expenses associated with the franchise shall not be considered a periodic fee unless the charge is unreasonably higher than that paid to other municipalities. The city shall have the right, at its own expense, to audit books and records and to review audits of any books and records of the grantee to determine whether and to what extent a fee is due. Any such fee shall be immediately due and payable. Should an audit review an additional fee due greater than 2% of the previous fee due, grantee shall pay the city's cost of the audit.

§ A385-7 Interpretation.

Nothing in this franchise shall be construed to alienate the public right in and to any highway, street, alley or public place. Nothing in this franchise shall be construed in any manner as a surrender by the city of its legislative power with respect to the subject matter of this agreement or with respect to any other manner, limiting the right of the city to regulate any highway, street, alley, or public place in the city to the extent permitted by law.

§ A385-8 Extension of service.

Grantee may from time to time market electrical service to customers within the city, provided that names and addresses of such customers are timely submitted to the Clerk of the city in accordance with the provisions of this Ordinance.

§ A385-9 Limitations.

Nothing in this Ordinance shall be construed as a waiver by grantee of any of its rights under state or federal law. Grantee shall, as to all other conditions and elements of service not addressed or fixed by this Ordinance, remain subject to rules and regulations applicable to electrical service by the Michigan Public Service Commission, or its successor. With respect to the grantee's provision of electrical service to customers in the city, grantee shall provide the city with copies of all documents which grantee sends to the Public Service Commission and copies of all orders, decisions or correspondence grantee receives from the Public Service Commission. Grantee shall permit the city inspection and examination of all records and is required to maintain or file under the Michigan Public Service Commission rules or regulations at no cost to the city during regular business hours.

§ A385-10 Assignment.

This franchise may not be sold, leased, assigned, transferred or used by any party other than the grantee without the written consent or approval by the City Council, except for an assignment necessary to accommodate a corporate reorganization on the part of the grantee.

§ A385-11 Acceptance.

Upon acceptance and publication, this Ordinance shall constitute a contract between the city and the grantee.

§ A385-12 Revocation.

This franchise shall be revocable by either party upon 60 days' written notice to the other party. The city may repeal this ordinance for misuse, nonuse or failure to comply with its provisions.

§ A385-13 Severability.

Any and all sections, terms, provisions or clauses of this franchise shall be deemed independent and severable. If any court of competent jurisdiction holds any section, term, provision or clause void or invalid, all remaining sections, terms and provisions or clauses not held void or invalid shall continue in full force and effect.

§ A385-14 Affirmative.

Grantee, prior to commencing any marketing herein and within 30 days of the effective date of this franchise, shall provide the sum of $5,000 for actual administrative services incurred and legal expenses associated with preparation of this ordinance and issuance of this franchise.

§ A385-15 Effective date.

This ordinance shall take effect 20 days after adoption; provided, however, that it shall cease and be of no effect after 30 days from its adoption, unless within said period, the grantee shall accept the same in writing, filed with the City Clerk. Upon acceptance and publication hereof, said ordinance shall constitute the contract between the city and the said grantee.