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85-1410 WHITE - CITV CLERK PINK - FINANCE COUIICil Af�... �� CANARV �• DEPAFt�TMENT G I TY OF SA I NT PALT L l�� /D BLUE - MAVOR File NO. f/J 1 , � C cil Resolution Presented By L �G' �S �~ Referred To ��1�/�t��il� Committee: Date f b/0��� Out of Committee By Date WHEREAS, Northern States Power Company has filed with the Minnesota Public Utilities Cortrnission a request for a $129 million ( 13.44%) electric rate increase for its Minnesota customers; and WHEREAS, NSP's rate hike request inciudes a 16.2% increase for the average residential customer which is substantially more than the 3 . 5% increase granted to fixed income social security recipients and the 4-5% cost of living increases being granted in local negotiated wage settlements; and WHEREAS, NSP's rate hike request includes a 1S% increase for small businesses many of whom are barely able to keep their doors open in today's economy; �nd WHEREAS, NSP's rate hike request includes elimination of the targe municipal pumping customer class which results in a non- benefit based pricing structure; and WHEREAS, Saint Paul residents, businesses and City government cannot afford these increases, especially since the electric increase comes so soon after NSP's proposed gas rate increase. This combination could result in an overall annual increase of $125 for an average residential customer and much greater amounts for business and city government. WHEREAS, the City has learned from its intervention in the NSP gas case that there are numerous areas in which NSP's proposed rate base, revenue requirements, operstfn� expensrs, �n� rate of return may be too high and the City expects a substantial return on its intervention in the gas case; and CgU[VCILMEN Yeas onnen Nays Requested by Department of: glOQ#ff�f X Drew In Favor Masanz Nicosia scnetbe� _ Against BY TedesCo W ilson Form Approved by City Attorney Adopted by Council: Date Certified Passed by Council Secretary BY By Approved by �Vlavor. Date Approved by Mayor for Submission to Council By BY WHITE - CITV CLERK PINK - FINANCE COUnCII CANARV�- DE�FAqTMENT GITY OF SAINT PAUL File NO. �� f��� BLUE - MAVOR � Council Resolution Presented By Referred To Committee: Date Out of Committee By Date WHEREAS, the proposed electric rates also appear to be too high in these areas; and WHEREAS, it is very appropriate for municipal governments to participate in utility rate cases to protect the interests of their residents, businesses, and municipat budgets; and WHEREA5, seven cities which are large municipal pumping customers of NSP, the thirty-seven city member Suburban Rate Authority, and a number of additional cities have indicated some degree of interest in participating in the NSP electric rate case; now, therefore, be it RESOLVED, that the City Council of the City of Saint Paul does support an effort to develop a consortium of cities to intervene in the NSP electric rate case; and be it FURTHER RESOLVED, that the City of Saint Paul will be a member of such a consortium, when devetopment; and be it FURTHER RESOLVED, that the City of Saint Paul will contribute a pro rata amount of money to help defray costs of intervention by the consortium; such amount to be determined when the extent of other cities' participation in the consortium is known; but that such amount will not exceed $20,000 Yeas CO�nnenME Na s Requested by Department of: �nes�xerx y Drew �_ (n Favor Masanz Nicosfa scheibei � __ Against BY Tedesco W��S�� OCT 1 7 1985 Form Approved by City Attorney Adopted by Council: Date Certified Pa • Council retar BY gy, �1ppr d by �Vlavor: Date ��,T f � ,9��j Approved by Mayor for Submission to Council 2 By PU��ISNED 0 C T � � 1985 � ; � • _ �/_�,�'-.iy�� .,. .. , October 9, 1985 MEMORANDUM To: City Council Member Bill Wilson From: Karen Swenson . Subject: NSP electric rate case: City options for response Below is a breakdown of the questions included in tHe Council's recently adopted guidelines regarding intervention in utility rate cases, as applied to NSP's proposed electric rate increase. Please let me know what additional information you would like on these issues. 1. Impact a. Effect on City residents and businesses NSP's proposed $129 million increase would have the following ef- fects: Calculated Revenues ($000) % Customer class Present Pr000sed Increase Increase Residential 337,962 38g,325 50,563 14.97� Commercial & Industrial 592,325 665,526 73,203 12.36% Sales to Public Auth. 11,042 12,819 1,777 16.09% Street & Area Lighting 14,348 15,636 1,288 8. Service Connection & 3,995 6,097 2,102 52.62% Late Paqment Revenue . Tota1 Revenues 959,470 1,088,403 128,933 13.44� The effects on Citp residents and businesses varq with each customer's use, but should be similar to effects elsewhere in NSP's service ter- ritory. For a residential customer, the proposed increase is about $60 a year. If the gas and electric increase proposals are added together, , the combined residential impact is about $125 a year. b. Class or classes of customers most affected Residential and public autfiority sales have the highest percentage increases. c. Effect on City budget Overall impact would be about $400,000 more in electric costs. The Water Utflitp proj.ects a 15-20% increase. Althougll NSP proposes a 9% increase for street lighting, Public Works sa s that the cumulative i*�-^roaGp Q;^^Q NSP�s last electric rate inc udinQ the effects v.,S.��-..,..._,..:...�,.�.._ .,,,,. of automatic fuel_adjustments, is close to 25% • , ...._-__.. . � ' . � ��,�=/��6 - - - . - 2 - 2. IIniqueness a. Issues whicfi affect only Saint Paul There is one street lighting rate schedule which onlq applies to � Saint Paul, but the increase for tfiat rate schedule is not signi- ficantly different from the other street lighting rates. This is unl.ike tlie NSP gas case, where some of the major issues (competi- tion from district heating and fuel oil, franchise fees, and con- servation) either were Saint Paul-specific or had their greatest impact here. b. City impact on those issues by participating in the case. There could be some impact on the street lighting schedule, but t:�e greater impact would be on the overall request. c. City information which would be useful in the case The City's experience from the gas rate case should be useful in the electric case, since it is tfie same utility (e.g. personnel costs, inflation, etc. as issues). In addition, the Water Utility and Public Works have data and computer programs which should be useful in analyzing the request. 3. Adequacy of other efforts a. Other parties' attention to the major issues In the NSP gas case, the City raised issues which the Department of Publi:c Service, the Attornep Geaeral, and others had. not raised, and provided additional support to other parties on other keq issues. The DPS� intervenes to represent the general interest, and the Attorney General represents residential customers' interests. No one represents the interests of municipal custoners unless municipal �customers inter— vene. �. Issues on whicfi the Citq can do a better �ob than other parties Same as 3.a. above. 4. Probable outcome a. Ability to resolve City issues by means other than a rate case , None. A rate case is where utilitp rates are decided. b. Likelihood of positive outcome Cities have had significant impact on prior rate cases. The most recent example is th� Suburfian Rate Authozity's �ntervention in . NortTiwestern Bell's last case; in which the SRA opposed the metro Tter System, and the Publ�c IItilities Co�i:ssion cut the difference among the tiers in fialf. Since the NSP gas case is still pending, we do not pet know if the Citp will be successful in that case. . .. ..., ,, .,.:: . •� ` ' ' C�.�- �.��/y�o J - 3 - 5. Cost/benefit Iatervention is expeasive if the City has to do so alone; joininR with other cities sigaificantlq cuts that cost, with the same benefit, if the interests of aIl the cities are in the same direction. Action which does not involve intervention is of questionable if �any effectiveness, even though the cost is less than eitfier individual or joint intervention. y _. _ _... . ..:. ._.._._.. . �,� �/(��Q� -�,,�_�' _�� _.... .. . .... __ .. . . .. r . .J . . ._ . :-/�,/-••..�✓ T7T° - :;;�,�"�:;��:�� �22'Y O�+' .SAI �� rJ� �ii . ) :V;: �� \"j_� . � . '._�, t,��;:w i�.r OI'I�ZCI�; OI�` 2`FII►: CITY COIII.'CEL F1'�D �;_ � S',=i:_' ��, i� � +t t\ ' �Y � �d� '" , ' ;_,r '.�`�-��,;,>� e ,:;- O.�tob:e�.�:lb,� �85 �;: :,:,-� _ _ • • . _ . . � _it�� . C 0 fV� i�} i r�" E E R E � O � . ,,� �... � T i O = Sain� P�� I Ci�� Co� � �si � � �p � �'� ' C d I'b'1�7 l 1 1�� Q� FINANCE, MANAGEMENT F� PERSONNEL ' ' C'r�A I r�'. James Scheibel ! � CO�ITTEE-OF-THE-wHOLE: � Resolution approving the anpointment of Rafael Viscasillas � as Personnel Directar of the City of St. Paul for a term • ' of 6 years camnsencing Octo6er 28, 1985. A��I�N'�.Q REGULAR CO�M�tITIEE: • . � 1. Approval of minutes .frvm meeting held October 10,, 2985. A�� . . � 2. Resolution amending the 1985 budget•by adding $4,t,�800�to the Financing and Spending Plan for POlice I.D. Card Oeposit. (Police) ��'�W1� � 3. - Resolution amending the 1985 budget by adding $23,82I to the Financing and Spend,i�n��,, ._ . .. Plan for-Police-Speical Revenue Fund-Crime Laboratory Equi.nment Fund. (Police?�'i'�Q�� ' 4, Resolution amending the I985 budget by adding $3Z,9I2.00 to the Financing and � � Spendi,ng Plan for Special-Project-Gea. Govt. Housin�Discrimination Comolaints. (Human Rights) • ��p � ' . . � S. Resolution ameading the I985 budget by adding $10,912.00 to the Financing and . • Spending PIan for Exec. Administration-Civil Rights Regulations/Hnzarcement. . (Human Rights) �Q'�1i'!.d . ' � 6. Resolution amending the z985 budget by adding 52,221.52 to the Financing and ,,�p a/'E� Spending Plan for Special Project-General Govt.-the Rand Study. (Budget Director���'' 7. Resolution amending the I985 budget by adding $225,629 to the Financing and �,p�� ' Spending Plan for General. 6ovt. Accounts-Bldg. Trades Fringe Benefits. (Finance) I'i+"r1O� 8. Resolution amending the 1985 budget by decreasing �40,000 from Financing Plan ' and adding $8,600 ta the Spending Plan for Alarat License Activities f, Penalties. (Finance Dept.) (,/4{1� �J� 'Z'O 10-�-$s 9. Resolution amending the 1985 budget by transferring $3,000 from Contingent Reserve ' to PED-Citizen Participation. (PED-Community Development) •�P�� . �''f�o ��� . ' �0,: ` `�,� �y� �° •- ��, �3is a� c3��i.e� tq �.ntervene in .� th+e �' 4 rate casa ��� Lhat �,,C�tY.,�t?�.LLl. conttib��e±�.���.� • . r� �t�'� tb hcip -41e�iray costs of in�'��i►�s'tt�� '�+p the consortium. � • lI; Resolutian transferring �388,U00 fro ark Nurse Tax Increment District to � � � . • Edgcumbe Community Recreation Center�� ��VZ. � W i'�i �CQ�"1K��.�,� . . ' . • , ' • _•, - CITY HALL SL•VENTF�I FLOOF. S�tINT P�tiUL.AiI1tiESOT��55102 ' �,.„