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Home My WebLink About22663 1 ORDINANCE NO. 22,663 2 3 AN ORDINANCE TO FIX AND IMPOSE THE AGGREGATE AMOUNT 4 OF FEES AND CHARGES TO BE PAID TO THE CITY OF LITTLE ROCK, 5 ARKANSAS, BY ENTERGY ARKANSAS, LLC; AND THE METHOD OF 6 PAYMENT THEREOF; TO AMEND SECTION 9 OF LITTLE ROCK, 7 ARK.,ORDINANCE NO. 11,683 (DECEMBER 6, 1965); AND FOR OTHER 8 PURPOSES. 9 10 WHEREAS, Entergy Arkansas, LLC, is duly authorized by a Franchise Agreement to, among other 11 things,construct,operate,maintain,and extend an electric system within the City of Little Rock,Arkansas 12 (the "City"), and to sell, furnish, transmit and distribute electric power and energy to the City and citizens 13 residing therein; and, 14 WHEREAS, Entergy Arkansas, LLC, is now providing electric service to the City and its inhabitants 15 and occupying the streets, alleys, airways, and other public rights-of-way within the City pursuant to said 16 franchise agreement, and making certain payments to the City in lieu of all other taxes, fees, charges, 17 impositions,and licenses, except general taxes; and, 18 WHEREAS, the City of Little Rock, Arkansas, Board of Directors approved Ordinance No. 22,605 19 (April 29,2025)which amended Section 9 of Little Rock,Ark.,Ordinance No. 11,683 (December 6, 1965) 20 to add a new class of customer entitled High Load User(defined below); and, 21 WHEREAS,the City is legally authorized to impose,and Entergy Arkansas, LLC, is obligated to pay 22 a just and reasonable Franchise Fee in connection with its operations in the City. 23 NOW, THEREFORE BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY 24 OF LITTLE ROCK,ARKANSAS: 25 Section 1. Section 9 of the Franchise Agreement, which is Little Rock, Ark., Ordinance No. 11,683 26 (December 6, 1965)as amended, is hereby amended to include the following: 27 For the year beginning January 1, 2026, and each year thereafter, Entergy Arkansas shall 28 pay in monthly installments the greater of: (A) the sum of(i) 5.2% of the gross revenue 29 collection as paid to it by industrial, commercial, and residential users located within the 30 corporate limits of the City of Little Rock, excluding its gross revenue collection as paid 31 to it by any High Load User(defined below),located within the corporate limits of the City 32 of Little Rock and(ii)0.25%of its gross revenue collection as paid to it by any High Load 33 User or (B)the sum of Eight Million, Eight Hundred Thousand Dollars ($8,800,000.00), Wage 1 of 31 1 whichever is greater. The Company's Auditor shall certify such gross revenues. 2 3 For purposes of such calculation, "High Load User" shall mean any user that (a) takes 4 service from Entergy Arkansas in the corporate limits of the City of Little Rock after April 5 28, 2025; and (b) contracts with Entergy Arkansas for at least 225 megawatts of service 6 within the corporate limits of the City of Little Rock; and(c)executes a contract with the 7 City of Little Rock with respect to the user's project to be served by Entergy Arkansas; 8 further, no calculation under(A)(ii)above shall be applied by Entergy Arkansas until such 9 time as the City provides Entergy Arkansas with a statement executed by the Mayor on 10 behalf of the City confirming execution of the contract as set forth under(c)above. 11 Section 2. Payments to the City by Entergy Arkansas, LLC,of the amounts as provided for in Section 12 1 hereof shall be made monthly on or before the 15th of each month. 13 Section 3. Entergy Corporation shall also be subject to the relocation policy set forth in Little Rock, 14 Ark., Rev. Code §§2-350—357(1988). 15 Section 4. Effective Date. Because an ordinance of this nature remains in effect until abandoned, and 16 in light of the language of the current Section 1 of this ordinance, it is noted that the Franchise Fees set 17 forth in Section 1 of this ordinance shall be in full force and on January 1, 2026. 18 Section 5. Severability. In the event any title, section, paragraph, item, sentence, clause, phrase, or 19 word of this ordinance is declared or adjudged to be invalid or unconstitutional, such declaration or 20 adjudication shall not affect the remaining portions of the ordinance which shall remain in full force and 21 effect as if the portion so declared or adjudged invalid or unconstitutional was not originally a part of the 22 ordinance. 23 Section 6. Repealer. All ordinances and parts of ordinances that conflict herewith are hereby repealed; 24 provided, however, only to the extent that the same are in direct conflict herewith. Except as provided, 25 nothing herein shall be construed to alter or change the terms or conditions of the present franchise under 26 which Entergy Arkansas, LLC, is operating, as set forth in Ordinance No. 11,683 (December 6, 1965), as 27 amended. 28 PASSED: October 6,2025 29 // 30 // 31 // 32 // 33 // [Page 2 of 31 1 ATTEST: APPROVED: 2 3 ALIAMI ' -1n,-- 4 Allison Segars,Ci erk Frank Scott,Jr.,-Mayor 5 APPROVED AS TO LEGAL FORM: 6 7 ,,../(-h...„ bu,„_______ _sil,_ 8 Thomas M. Carpenter,City A rney 9 // 10 // 11 // 12 // 13 // 14 // 15 // 16 // 17 // 18 // 19 // 20 // 21 // 22 // 23 // 24 // 25 // 26 // 27 // 28 // 29 // 30 // 31 // 32 // 33 // 34 // [Page3 of31