(A) Franchise fee. In consideration of the rights, privileges, and franchise hereby granted, PNM shall pay the city, from and after the date of the acceptance of this franchise, on a monthly basis, a total aggregate sum of an amount equal to 3% of the gross receipts which PNM receives from the sale of electricity and the collection of energy transition charges within the municipal boundaries of the city as such boundaries exist as of the effective date or as later expanded by the city pursuant to applicable law, provided that in the event of such expansion, the city provides PNM with written notice specifying such boundary expansion pursuant to § 13-4-2-8(C) of this Franchise Ordinance for the next preceding one-month period to all PNM retail customers as classified by PNM's rate schedules. PNM shall make payments on a monthly basis on or before the thirtieth day following the close of such month.
(B) Franchise fee in lieu of other payments for the occupancy and use of the public rights-of-way. The franchise fee and payments made hereunder are and shall be in lieu of any and all other franchise, license, right-of-way privilege, occupancy or use fees during the term of this franchise; provided, however, that no acceptance of payment by the city shall be construed as an accord and in satisfaction as to any underpayment of amounts due under § 13-4-2-4(A). This Franchise Ordinance expressly provides that ad valorem property taxes, special assessments for local improvements, gross receipts taxes, and other assessments, taxes, and fees of general applicability shall remain applicable and payable by PNM. Without limiting the foregoing, the city does not waive the obligation of PNM to obtain all applicable permits and to comply with codes, ordinances, and regulations governing the operation, maintenance, and construction of its system.