APPENDIX B – FRANCHISESAPPENDIX B – FRANCHISES\ORDINANCE NO. 697 (ELECTRIC)

AN ORDINANCE GRANTING KANSAS CITY POWER & LIGHT COMPANY, ITS GRANTEES, SUCCESSORS, AND ASSIGNS, THE RIGHT AND FRANCHISE TO CONSTRUCT AND MAINTAIN ALL WORKS AND PLANTS NECESSARY OR PROPER FOR SUPPLYING CONSUMERS WITH ELECTRIC OR OTHER ENERGY, GRANTING TO SAID COMPANY THE RIGHT TO USE THE STREETS, ALLEY’S AND ALL OTHER PUBLIC PLACES, PRESCRIBING THE TERMS OF AND RELATING TO SUCH FRANCHISE, AND REPEALING INCONSISTENT ORDINANCES OR PART THEREOF.

WHEREAS, Kansas City Power & Light Company (herein called the Company) is a corporation duly organized and existing under and by virtue of the laws of the State of Missouri, and admitted to do business under the laws of the State of Kansas as a foreign corporation for the purposes of generating and distributing electric energy, and

WHEREAS, the Company is operating a system for the transmission of electric current between two or more incorporated cities in the State of Kansas and has heretofore built, or proposed to build its transmission lines into or through the City of Louisburg, Kansas (herein called the City), under a twenty (20) year Franchise Ordinance with the City of Louisburg, to wit, Ordinance No. 391, which expires May 11, 1999, and

WHEREAS, the parties hereto desire that the Company continue furnishing electric energy to consumers in said City and expand said services as necessary to serve the needs of the Louisburg community.

NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF LOUISBURG, KANSAS:

SECTION 1: In consideration of the benefits to be derived by the City and the inhabitants thereof from the construction, operation, and maintenance of an electric light and power transmission and distribution system and the supplying of electric energy to the public, there is hereby granted to the Company and to its successors and assigns, for the term of twenty (20) years from the effective date hereof, subject to the provisions of Section Eight, a Franchise and authority to construct, operate, and maintain in the existing and any future extended corporate limits of the City all appropriate facilities and plants for carrying on a power and light business and all other operations connected therewith or carrying on a power and light business and all other operations connected therewith or incident thereto for the purpose of supplying the City and outlying areas with electric or other energy in such forms as may be reasonably required for domestic, commercial, industrial, municipal, and other purpose and to produce and supply such energy by manufacture, generation, purchase, or otherwise, and to transmit and distribute same by means of underground or overhead lines or otherwise, and for any or all of said purposes it is authorized to (i) construct, install, replace, and remove conduits or other underground facilities for the installation and protection of its underground wire and cables, (ii) place poles, lamp posts, guys, and anchors for its overhead wires, cables, and street lights on all streets, alleys, avenues, bridges, parks, parking, and other public places or thoroughfares, (iii) construct, erect, and maintain all buildings, machinery, and attachments of any and every kind for any and all of said purposes, and (iv) enter upon any and all of said public places within the corporate limits of the City as they now exist or may hereafter be opened, widened, extended, laid out and established, including any other territory hereafter added thereto or coming under its jurisdiction, and to trim trees upon and overhanging such places and make such excavations thereon as may be appropriate for the construction, repair, and renewal of its overhead and underground facilities and plants.

SECTION 2: Any pavements, sidewalks, or curbing taken up on any and all excavations made shall be done under the supervision and direction of the governing body of said City under all necessary permits issued for the work, and shall be made and done in such manner as to give the least inconvenience to the inhabitants of the City and the public generally, and pavements, sidewalks, curbing, and excavations shall be replaced and repaired in as good condition as before with all convenient speed, all at the expense of the Company.

SECTION 3: During the continuance of this Franchise, the Company shall construct, maintain, and operate its transmission and distribution system within the City and shall furnish electric energy to the City and its inhabitants in accordance with the terms of this Franchise, the rates, charges, rules, and regulations now on file with the State Corporation Commission of the State of Kansas, or such revision of rates, charges, rules, and regulations as may be lawfully established from time to time in accordance with the laws of the State of Kansas. Nothing contained herein shall be construed as a guarantee upon the part of the Company to furnish uninterrupted service, and interruptions due to acts of God, fire, strikes, civil, or military authority, orders of court, and other cause reasonably beyond the control of the Company are specifically exempt from the terms of this Section.

SECTION 4: The Company shall, at all times, in the construction, maintenance, and operation of its electric transmission, distribution, and street lighting system, use all reasonable and proper precautions to avoid damage or injury to persons or property, and shall hold and save harmless said City from any and all damage, injury and expense caused by the sole negligence of the Company, its successors and assigns.

SECTION 5: In consideration of the premises, the Company agrees to pay to the City of Louisburg, Kansas, and the City of Louisburg agrees to accept as adequate compensation and consideration for the Franchise hereby granted and in lieu of occupation, license, privilege, and all other taxes and fees, five percent (5%) of the total of the gross receipts charged and collected for electric energy sold for domestic, commercial, and industrial consumption by the Company to all consumers located in the present or future corporate boundaries of the City of Louisburg during the term of this Franchise. Any consideration hereunder shall be reported and paid to the City by the Company on a semi-annual basis on or before each June 20 and December 31 for the years in which this Franchise remains in effect, reflecting such electric energy sold for the six months’ period ending at the last meter reading receding each May 31 and November 30, respectively. Such payments shall first be applied to the amount due to the Company from the City for street lighting and traffic signal service billed for the applicable said six months period (the “SLTS Billings Amount”) and by paying the remainder, if any, to the City. If in any applicable said six months’ period the SLTS Billings Amount exceeds the gross receipts amount due to the City, the Company shall for such excess bill the City and the City shall pay the same to the Company. The term “gross receipts,” as used in this Section shall not include (1) the electrical energy sold to the United States or the State of Kansas or to any agency or political subdivision thereof, (2) the electrical energy sold for other use which cannot be classified as domestic, commercial, or industrial, such as the electrical energy used by public utilities, telephone, telegraph, and radio communication companies, railroads, pipe line companies, educational institutions not operating for profit, churches and charitable institutions, (3) the electrical energy sold for resale, and (4) the amounts paid to the City pursuant to this Section.

SECTION 6. That this Ordinance shall not take effect and be in force until after the expiration of sixty (60) days from the date of this final passage and acceptance by the Company, within said sixty (60) days, in writing; if no acceptance as hereinbefore provided has been filed, then this Ordinance shall be ipso facto, absolutely, null and void.

SECTION 7. All provisions of this Ordinance shall be binding upon the Company from and after the date this Ordinance takes effect, and shall inure to the benefit of the Company, its grantees, successors, and assigns.

SECTION 8. If, during the term of this Franchise as described in Section One, the law of the State of Kansas is changed to permit competition between retail electric suppliers in any territory previously certified as a single certified service territory pursuant to K.S.A. 66-1,170 et seq., then the City and the Company agree to enter into good faith negotiations for the purpose of revising the Franchise to address said change. Should the City and the Company fail to agree on a revised Franchise, then the City and the Company shall each have the right to terminate the Franchise upon 120 days written notice.