Agenda - Council - 08/27/1996 - Laserfiche WebLink

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SUBURBAN RATE AUTHORITY ANNUAL REVIEW 1995 I I The following is a brief summary intended for the city councils of Suburban Rate Authority ("SRA") member cities. It highlights be major activities and achievements of the SRA during 1995. The SRA is a joint powers association of,. 32 Twin Cities suburban municipalities that monitors rates and rate design issues of electric, gas and telecommunications utilities. 1995 and 1996 have been extremely active and successful years for the SRA. I I I I I I I Model Telecommunications Permit Ordinance The SRA drafted a mqdel telecommunications permit ordinance in conjunction with the League of Minnesota Cities to establish ufliform requirements regarding important issues to cities in the new competitive telecommunications eBvironment: permit procedure and fees, location and relocation requirements, repair requirements, perfortg, ance bonds, indemnity and other provisions. The recently-enacted Federal Telecommunications Act of 1996 includes important and debated language regarding cities' right to manage and receive compensation for use of the right-of-way. The SRA/League Model Ordinance pre-dates the Act but establishes many lof the vital protection cities need when telecommunications carriers seek to expand within the City and expressly pres.erves rights to franchising or leasing. Minnegasco 1995 Rate Case The SRA actively intervened on behalf of ratepayers in Minnegasco's 1995 petition for a $24.3 million rate increase and a 7.7% {requested increase for residential customers. The SRA, through its expert witness, Robert Towers of CheSapeake Regulatory Consultants, has challenged a $1 million annual claimed ratepayer expense resulting fro~ Minnegasco's purchase of the Midwest Gas system. The SRA also argues that Minnegasco exaggerates the revenue deficiency created by the residential customer class rates and has not shown a justification for an increase in the fixed monthly residential customer charge. The ALJ adopted the SRA arguments challegging the $1 million Midwest Gas acquisition adjustment that, if accepted by the PUC, will save SRA resideOts and businesses approximately $215,000 annually. The PUC will decide on the petition during the sufnmer of 1996, I I I I I I I I Model Gas and Electric Franchise Ordinances Again in partnership with the League of Minnesota Cities, the SRA updated its uniform gas and electric utility franchises to assist its Inember cities in negotiating new franchises. Of particular interest to cities in today's changing fiscal envirohment is the right to charge franchise fees. In addition, electric utilities are likely to be deregulated within ]the next decade. Terms and conditions of franchises become increasingly important to those utilities when~they perceive that franchise terms may affect competition. Electric Industry Deregulation The SRA intervened ir~ a long-term investigation and review by the PUC of the electric utility industry. The PUC will be making a recommendation regarding if and when electric service should be deregulated for retail customers. The SRAihas opposed utility company suggestions that eminent domain rights be equalized between cities and investor-owned utilities and that franchise rights be diminished. The SRA will continue to monitor the proceedings. Customer Service Task Force The SRA was invited tO participate on a task force for the PUC on customer liability and service issues. The task force addressed is4ues on notice to customers, liability of innocent residential customers for past unpaid debts of prior customers living at the new residence and dispute resolution procedures. JMS103351 SU160-3