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84-400 WHITE - CITV CIERK PINK - FINANCE GITY OF SAINT PAUL Council CANARV -DEPARTMENT+ File NO. �� BLUE -MAVOft . City Attny/PB • � rdin�nce Ordinance N 0.�7�� Presented By �Referre To �� T��— � Committee: Date 3 ��2� Out of Committee By Date An ordinance extending the steam franchise and providing for steam rates . THE COUNCIL OF THE CITY OF SAINT PAUL DOES ORDAIN: Section 1 Saint Paul Steam Company, a Minnesota nonprofit corporation, hereinafter designated as "Company" , being a public service corporation supplying steam public utility service for all purposes within the City of Saint Paul pursuant to an Assignment of Franchise from Northern States Power Company dated September 16, 1981, and effective October 1, 1981, which franchise was granted pursuant to Ordinance No. 15742 for a term expiring December 31, 1984, is hereby granted a franchise to use the streets and other public property located in such City for such purpose for a term extending from January 1, 1985 to December 31, 1985 . Section 2 The franchise granted herein shall extend to the Company' s use of all s�reets and public property now being used by the Company in connection with such service and of such other streets and public property as may from time to time be designated by the City Council. Such franchise to use the streets and other public property located in such City shall include such use for the purpose of constructing, maintaining, and operating a system of pipes , subways and manholes with all other necessary appurtenances for carrying on the business of conveying steam to consumers for all purposes . COUNCILMEN Requested by Department of: Yeas Nays Fletcher "� Drew [n Favor Masanz Nicosia B Scheibel v Against Y Tedesco Wilson Form App d by Cit tto n Adopted by Council: Date � Certified Passed by Council Secretary By �s /�� By Approved by Mayor: Date Approved by Mayor for Submission to Council By By ��,��-- �°��c�a . `7�� -2- Section 3 In locating its steam facilities , the Company shall in no way unreasonably interfere with the safety and convenience of ordinary travel along and over said streets and public property nor interfere with other uses to which such places may be put by the City of Saint Paul , and in the event it shall become necessary during the term of this franchise to remove or relocate the physical property of the Company located within or upon any of the streets or public property in the City of Saint Paul, because of such interference or use by the City or as a result of any public improvement undertaken by the City, the Company shall, when so advised bv the Council , remove and relocate said facilities without cost to the City of Saint Paul , and shall place the streets or public property in the same condition as they were prior to said removal or relocation. Any relocation or removal of the Company' s facilities made necessary because of the extension through or into the City of a federally-aided state trunk highway, includin� within the National System of Interstate Highways , shall be governed by the provisions of the r2innesota Statutes 1971 , Section 161.46 . Section 4 The Company in the installation, maintenance, and operation of its facilities shall be subject to such reasonable regulations as may be provided by the Council , and no pipe or pipes or other appurtenances shall hereafter be installed or laid by the Company upon the streets and public property of the City, except upon application to the Department of Public Works or other persons designated by the City Council , and written permission therefor granted by said department or person. Section 5 During the term of the franchise hereby �ranted, the Company sha11 pay into the treasury of the City of Saint Paul a yearly franchise fee of 8%, the monetary amount of which is to be �l= 8y-�oc� � /yi��v -3- measured by the Company' s gross earnings during 1985� a-°�� e�-t�e--s=��-:�-,:,_.� �T,°�Y�, and the payment of such amount shall be in monthly installments continuing through the term of the franchise. The installment payment for each month shall be due on or before the last day of the following month. The Company' s payment obligation shall be met if payment is mailed and postmarked on or before the due date. The amount of the franchise fee shall be allowed as an operating expense to the Company attributable solely to the Company' s operations within the City of Saint Paul , and in calculating such amount, "gross earnings" shall be held to mean and include all sums receivable by the Company from the sale of steam distributed and used within the city limits of the City of Saint Paul . In no event shall the Com?�any be required to pay a franchise fee in excess of the amount which it can legally collect from its ��,i�= ��y��l � t �i�� -s- rates without requiring the hearing before the hearing examiner, and the rates to be charged are increased under such agreement , such setting shall be by ordinance, with ten (10) days ' published notice of a public hearing on its final adoption to be �,iven in the official newspaper . In setting the rates to be charged, the Council shal.l thereby include in such determination revenue sufficient to provide a fair and reasonable return to the Company and to cover its reasonable costs and operation expenses alloca- ble to the Gity. The prescription of rates shall be made within 150 days after the filing of the petition. In the event the Council is unable to prescribe rates within said 150 days the Company may put the schedule of rates as proposed by the Comnany in its petition into effect as interim rates on all bills computed from regular meter readin�s after said 150-day period, subject to the obligation by Company to re�und to its customers any increases in rates collected under such interim rates which are in excess of the lawful and reasonable rates as finally determined. Section 8 The Company may withdraw any rate schedule which has been superseded, may revise any existing rate schedule, or establish other rate schedules , providing the rates thereunder shall be reasonable and no existing customer shall be required to pay higher rates for the same extent of service received prior to the revision or establishment . T�lithin ten (10) days after the filing of such withdrawal , revision, or new schedule by the Company, the City Clerk shall give published notice of such filing. The withdrawal , revision, or new schedule shall take effect sixty (60) days after written notice thereof has been filed by the Company with the City Clerk unless the Council or any customer sha11 initiate by resolution or petition during the interim period a review of the filing, whereupon a public hearing shall be conducted upon ten (10) days ' notice published before- hand in the official newspaper. After the hearing, the council shall by resolution adopt, modify, or reject the withdrawal of superseded rates , revision of existing rates , or establishment . G� ��5��' /'%i:��' -6- of new rates . Notwithstanding the foregoing, the Company shall not seek any rate increase for the remaining term of intended steam service, which will terminate on September 30, 1985 , save and except for conditions occurring in the period from the effective date of this ordinance to September 30, 1985 , that a reasonable, prudent utility manager could not have anticipated as of February 13 , 1985 . Section 9 The Company shall file with the City Clerk copies of all rate schedules , charges , forms of contracts or agreement for the sale of steam, and rul.es and regulations pertaining thereto , which shall be kept open by city officials for public inspection. Within ten (10) days after the filing of such rules nad regula- tions or amendments thereto , the City Clerk shall give published notice of such filing. Such rules and regulations and amendments thereto which may be filed from time to time by the Company shall be reasonable, and the Council may, upon its own initiative, or upon petition by any customer , filed with the City Clerk within fifteen (15) days of publication of the notice , review such rules and regulations and amendments thereto and after a public hearing set upon ten (10) days ' notice published in the official news- paper , enact a resolution revising such rules and regulations and amendments thereto which it shall deem unreasonable. Section 10 For the purpose of assisting the Council in the regulation of the activities and rates of the Company as provided in this franchise, the office of the City Attorney shall designate an individual of its staff to serve to perform the duties that such regulation necessitates . Section 11 The Company shall pay the City during the term hereof an annual amount of $15 , 000 payable on May l , 1985 , which sum shall be used to pay that part of the annual salary of the individual . �r= ��°e � �� -�- designated by the City Attorney, his assistant or assistants , clerical help and office expenses , outside accountants , hearing examiner, attorneys , advisors , and consultants ' fees, reasonably related to the re�ulation of the Company, its rate schedules , and other matters and operations under this franchise. The amount of such payment or payments shall be allowed as an operating expense of the Company in the City of Saint Paul . Section 12 The Company shall file during each month with any person designated by the City Council , a report of the number of customers , sales and revenues by classes of service for the preceding month based upon its utility operations within the City of Saint Paul . �� The Company shall also file with any person designated by the� City Council , within three months after January 1� , a complete detailed statement on forms to be approved by said person, covering the utility operations within the City of Saint Paul for the preceding year, including all revenues , expenses and plant investment , together with such breakdown and analysis of operating statements as the said person may request . The said person desig- nated by the City Council shall have the right to require additional information concerning operations under this ordinance from time to time in such form as may be prescribed by said person. Any person or persons designated for that purpose by the council shall. have the right, at all reasonable times and upon reasonable notice , to examine the books of account , records , ,, vouchers , disbursements , rates;; revenues , contracts , purchases ,.----� sale and other transactions beariri:g on and relevant to the rates � Company charges and the service it provides to its customers in � the City of Saint Paul . Section l3 Before this ordinance shall be finally adopted by the council , a public hearing shall be held upon ten (10) days ' published notice in the official newspaper and after said hearing the Council may . �r-- ��-��a ,�y��k -s- pass this ordinance, revise or amend the same. The Company shall bear the costs of publication of the franchise ordinance and shall make a sufficient deposit with the City Clerk to guarantee publica- tion before the ordinance is passed. Section 14 The Company shall indemnify and save the City whole and harm- less from any and all claims for injury or dama�e to persons or property occasioned by or arising out of the construction, main- tenance, operation, or repair of said transmission and distribu- tion system or by the conduct of the Company' s business in the City. Section 15 Every section, provision, or part of this ordinance is declared separate from every other section, provision, or part ; and if any section, provision, or part shall be held invalid, it shall not affect any other section, provision, or part . Section 16 The Company shall have the right to promulgate, from time to time, such rules , regulations , terms and conditions governing the conduct of its business , not in conflict with this franchise ordinance, as shall be reasonably necessary to enable the Company to exercise its rights and perform its obligations under this franchise ordinance , and to assure safe, adequate and continuous service to its customers . The Company' s obligation to provide service shall be limited to servin� steam at existing premises receivin� such service and reasonable expansions thereof, pro- vided that such service can be rendered with steam production facilities presently operated by the Company. Other premises located on steam mains may be served pursuant to rules and regu- lations of the Company which protect service to existing premises and reasonable expansions thereof. Said rules , regulations , terms and conditions shall be filed with the City Clerk. WHITE - CITV GLERK PINK - FINANCE COl1I1C11 ,/ CANARV -DEPI1�tTMF_1NT' GITY OF SAINT PAITL File NO. �7°'�'�7�t'�� BLUE -MAVOR � • Ordin�nce Ordinance N 0. l��"Z � Presented By Referred To Committee: Date Out of Committee By Date -9- Section 17 The Company shall, within thirty (30) days after the passage, approval , and publication of this ordinance, file with the City Clerk of said City its written acceptance thereof in form to be approved by the City Attorney, and therein shall agree to abide by, keep, and perform all the terms , limitations , conditions , and pro- visions of this ordinance. Section 18 This franchise herein granted shall not be exclusive nor irrevocable , but may be terminated and forfeited after notice and hearing for any breach or failure by Company to comply with the terms , limitations , or conditions hereof. Section 19 This ordinance shall take effect and be in force after the � public hearing prescribed in Section 13 and thirty (30) days after its passage, approval and publication, and upon its _ acceptance, as provided in Section 17 hereof. COUNCILMEN Requested by Department of: Yeas Nays Fletcher Drew In Favor Masanz � Nicosia B schetbe� Against Y Tedesco Wilson APR 2 6 198� Form Approved by City Attorney _ Adopted by Council: Date Certified P s Council e r BY Appr d by Mayor: `�Y — 3 ��8�} Approved by Mayor for Submission to Council By QUBLISHED �� i`�'�� . �� ?'�� - � �7��p -4- customers in .the City by means of a sur char ge on its rate schedules for the purpose of collecting the franchise fee . �r" c ion 6 �X�i�6!lt A-1 �/' �-3, The steam rates contained in)that certain Petition for increased rates filed by the Company with the City Clerk on December 29 , 1982 , - an a roved as interim rates in�Ordinance No. 16995 , are hereby - d pp approved as duly constituted rates for a11 bills based on meter readings from and after the eff ective date of �this ordinance . Said interim rates axe approved and ratif ied as lawful and reasonable rates for the period to which said interim rates apply, and no refund shall be due by reason of the establishment of stearrrates by this ordinance . Fxh�h�fs �4�f ��yh R-3 Ii�t of(9`ilia�a� Nn • 1�9y5 u�f �y�t �i�th�a.w►�.SC�e� �c t�ici ord�u.uM.ce- u.++.� ;�ca,- r�rd1� ��ner'n , 2vu( Q.cf a�s.t,,�dec� � �d� h . Prnv,s�,m�s �� f� lah��J ►ticcuk 4k�r4,cs a;c+.�t L�o ��cf�M l�,sf� as ;��ical� �/�C��K.. n'��'�""1 � Section 7 ., At any ti�e the Council may review the operations of the Company, and not more often than once in each year , it may , upon its initiative , or shall upon the petition of the Company, prescribe rates to be charged by the Company under this franchise . If there is a dispute between the Council and the Company over the adoption or prospective rates , an examination of those rates shall be conducted in a public hearing beiore a qualified hearing examiner upon ten (10) days ' published notice in the official newspaper . The hearing examiner shall be selected by mutual a�reement of the . � � Company and the Council within twenty (20) days aiter the filing of said petition. If any selection is not made within s�id twenty . (2p) day period, then the hearing examiner shall be selected by the Council from a list of three nominees recommended by the Chief Judge of the District Court of Ramsey County. The hearing examiner shall at the conclusion of the hearing nake recommendations to the City :Council which in turn shall review �he record and prepare . • an or�inance �setting reasonable rates to be cYiarged. by the Comp�.ny within ten (10� days ' published notice cf a public hearing on said iinal adoption of said ordinance to be given in the official ne�as- � paper . Should the City Council and the Company agree to setting � ...._�� -_ SA{NT ` �AUL �� ?C� /�� STEAM �� COMPANY . . INCORPORATED .�,�.,�.-.�--�--��- .t�._,,,;_ �-�--.: ,- _ ...:s--�„_p,.._,,..� . • . .',:�.i�::.:•.0 �a�_.��'�,�J"'�T3ti...`''-i�:.�'ea�i -- _ ..�-��_ � � ..a�.e- � I� ��_� �. - - '' � an attiliate oi the Saint P2ul District Heating Development Comxny, Incorporated . � 138 Bremer Building ' 417 North Robert Street � � - ��''- - Saint Paul, MN 55101 ST. PAUL STEAM COMPANY {612) 297-8955 �.� Rate Schedule for Steam Service (Firm) AVAILABILITY: Available to commercial and industrial customers for general use of steam .service in accordance with franchise until September 30 , 1985. Steam service furnished from �low pressure mains is � available from September 1 to May 3�1 , inclusive; and steam service furnished from high pressure �mains is available the entire year. RATE: First 200 , 000 lbs. of condensat� per month @ $15_ O1 per 1000 lbs. Next 300.,,.000 lbs. of condensate per month @ $13 . 98 per 1000 lbs. Next 500 , 000 lbs. of condensate per month @ $12. 78 per .1000 lbs. Next 2, 000 , 000 lbs. of condensate per month @ $ ].I . 95 per 1000 lbs. Excess lbs. of condensate per month @ $11. 08 per 1000 lbs . PROMPT PAY2�NT PROVISION : A charge of S� will be added to net bill, computed at the rate shown above , which charge shall constitute a discount from gross bill for payment within the discount period. MONTHLY MININUM CHA.RGE : $20 . 00 net per meter. FUEL CLAUSE: There shall be added to. or deducted from the net monthly bil1 , 2 . 2� per thousand pounds of steam for each one cent increase above or decrease below $2 . 50 per million BTU in the average cost of fuel used during the preceding twelve months by the steam production . , plant used by St. Paul Steam Company, including related fuel handling costs . � SURCHP_RGE : A surcharge of 8 . 7o will be incluc3ed in the gross and net monthly bills co�nputed under this rate schedule. PROPOSED EFFECTIVE DATE : For all use billed after February 15 , 1983 . � ��►EN� e��r�� : , �- �.�, �� . �.s �� q�. �, � x �. �'cGa�.c�th �c+,t,� ��90 wcGl �.c Gc�c�'�uG f� � f� c�'�-� �it cQcc�.�i 'Co�EC�te�v� Cas�s : F�r �,P,Q �,��wP,�,a, �u� �u'u� av� � �i�e,c� Cr�) d,ue, C�u.e�s� w�CP �C .�c�G�Cc �r' a,� �r�,�s u��h�n � �e �- ��' ��u;��! �o �t"r� 'S � u�P � . ei�s- , 1Yl��GG�.q ' '�" D� � � FxNigir �- -� . �AINT - . PAU L {� �X G�1��`.fi� t�- Z. STEAM COM PANY INCORPORATED � . .. .. ' . : js'`rx:.._-,C.:�r�:d.c�_.;z—..�.-:q�:;:=``�?t-�.T:—_. '-'• "� �r:.n:`s '� :�,-:----^ !.�. a •.�-.�. . � "`1'.l�d!'r`. __� -..-Ci_ �r�,.-.�Y�C�.r=.�'•cr�.4.yr:ai_ra.' an atlih2te of the S2in1 Paui District Heat�ng Development Company, Incorporated - 138 Bremer Building ' 417 NoRh RobeR Street � ST: '�AUL STEAM COMPANY , Saint Paul, MN 55101 (012) 297-8955 Rate Schedule for �� • Steam Service (Interruptible) ' AVAILABILITY: Available on an interruptible basis to co�unercial and industrial customers that are located on portions of the Company ' s steam distribution system having adequate capacity. to serve customer' s . interruptible load without impairing service to other customers. Extensions or enlargement of the Co:r►pany ' s distribution� �acilities required to serve an interruptible load will be made in accordance with the Company' s General Rules and Regulations. The total capacity of .all interruptible customers shall be limited to the excess capacity of Company ' s steam production plant af ter service requirements to its firm customers are met. Customer will agree to (1) cur�ail use of steam whenever requested - to do so by the Company; and ( 2) provide necessary energy requirements . during curtailment from another source: �r 3 '� CHARACTER OF SERVICE : The delivery of steam hereunder shall be curtailec3 upon request of Company. �Such requests shall be made as far in advance as possible. � TERM OF AGREEMENT : Interruptible Steam Service agreement shall be for a term of not less than one year . Upon e�:piration of the te nn, agree- ment remains in effect until terminated by at least tnirty days ' notice by either party. � . RATE : Per 1 , 000 lbs . $8 . 25 . PR02•iPT PAYMENT PROVISION : A charge of Sg will be aaded to net bill , computed at the rates shown above , which shall constitute a discount from gross bill for pa ,� ent within the discount period. I�iO2�THLY 2.INIMUM CHARGE : The mini.mul-n bill for service rendered hereunder shall be $20 . 00 per meter, the amoLnL prorated for curtailment periods. Lvrc,rr�-r!� _9 . , • . . . , � . - � � �G�� - 3 � Steam Service (Interruptible) FUEL CLAUSE: There shall be added to or deaucted from the net monthly bil: 2 . 2� per thousand pounds of steam for each one cent increase above or decrease below $2. 50 per million BTU in the average cost of fuel used during the preceding twelve months by the steam production plant used by St Paul Steam Companys including:r_related fuel handling costs. ADDITIONAL CHARGE FOR USE OF STEAM ed to do soA by Companyf customer fails to curtail use of. steam when regue shall pay in addition to the above rate � an amount or $15 . 50 Per thousand pounds of steam used in excess of the volume to which customer was requested to curtail . Such payment, however, shall not preclude Company from shutting off customer ` s supply of steam in the event of customer' s � failure to curtail his use thereof when requested to do so. � EI•S.ERGENCY STEAM SERVICE FOR INTERRUPTIBLE STEAM CUSTOMERS: � Emergency stea service of interruptible steam customers during periods of curtailment may be available if Company' s ability to furnish such emergency service �aill not, in Company' s judgment, compromise Company ' s ability to provide firm ste�-n service to its firm steam customers . � Emergency steam service to curtailed interruptible steam customers will be approved by��Company provided: � . 1 . Emergency steam service is requested by customer and such requ�st is confirmed in writing no later tYian 4$ hours after the initial request. If the request is in writing , the 48-hour provision is fulfilled. 2. The .emergency is in the nature� of a breakdown of standby equipment which could not reasonably have been foreseen by customer. The rate for emergency steam service shall be $.11 . 50 per 1 , 000 pounds of steam used during the emergency p�riod. The emergency period shall end when customer ' s standby equipment is repaired and customer has notified Company or the end of the curtailment during which the emergency steam service was requested. , SURCHARGE : A surcharge of 8 . 7� will be ineduled in the gross and net monthly bills computed under th�is rate sch �� 1983 . PROPOSED EFFECTIVE DATE: For all use billed after February 15 , t�r� Qayv��ivr C��rce�E : � ��n`�.( .Ca,� G��',�,rre i�y�o f�e � �Gz�,'a�e � st.� tarLGl � u,��cCC (a t� �c ,��fi� �r� �lc.�s �i ��.f�- wu,�i'cc�C �c �iolU �05�5 = �' � u ��%� �� izp� �p� 05 . . �'� � �- d,u�r �cc4d�w�u. � � �' aG� �rsf� d� ��Gh� � � r,�.�c- > u'° �' - � , �� t d�, � ,�r��`S �s c�,��°� �� . ��;�u�;r�,� v , �Y��vr A-� � ` tL ls t .� '.��—�� 2nd �'l( b � (.� 3rd �- �2�� Adopted �-/�-�y Yeas Na s ��-�y Y DREW � �� s�o4 � FLETCHER ��j��, MASANZ NICOSIA SCHEIBEL WILSON MR. PRESIDENT TIDESCO � . � , 3 � � -_ -3- measured by the Company' s gross earnings during 1985, �-' -�-'--� Z � , and the payment of such amount shall be in monthly installments continuing through the term of the . franchise . The installment payment fox each month shall be . due on or before the Iast day of the following month. The Company ' s payment obligation sha11 be met if payment is mailed and postmarked on or before the due date . The amount of the franchise fee shall be a�lowed as an operatin� . expense to the Co�pany attributable solely to the Company ' s operations within the City of Saint Paul , and in calculating such amount , "gross earnings" shall be held to mean and include all stims receivable by the Company from the sale of steam distributed and used within the city limits of the City of Saint Paul . In no event shall the Comr�any be required to pay a franchise fee in excess of the amount which it can legally. collect from its � . .' � ��v'G�� ' � _7_ designated by the City Attorney, his assistant or assistants , clerical help and office expenses , outside accountants , hearirig examiner , attorneys , advisors , and consultants ' fees , reasonably related to the regulation of the Company , its rate schedules , and other inatters and operations under this franchise. The amount of such payment or payments shall be allowed as an operating expense of the Co�pany in the City of Saint Paul . , Section .12 . The Company shall file during each month with any person designated by the City Council , a report of the number of customers , sales and revenues by classes of service for �the preceding month based upon its utility operations within the City oi Saint Paul . l�8�- . " � The C��npany shall also file �aith any per�son designated by the City �ouncil , within thYee months after �January 1,�€--?�**_�*—;�e*�-! a complete detailed statement on forms to be approved by said person, ' covering the utility operations within the City of Saint Paul for I the preceding year , including all revenues , expenses and plant investment , together with such breakdow-n and analysis of operating statements as the said person may request . The said person desig- nated by the City Council shall have. the right to require additional information concerning operations under 'this ordinance from time to time in such form as may be prescribed by said person. . Any person or persons designated � for that purpose by the � council sha11 have the right , at all reasonable ti�es and upon reasonable notice , to examine the books of account , records , � � vouchers , disbursements , rates , revenues , contracts ; purchases , sale and other transactions bearing on and relevant to the rates Company .charges and the service it provides to its customers in the City .of Saint Paul . Section 13 � Before this ordinance shall be finally adopted by the council , a public hearing shall be held upon. ten (10) days ' published notice in the oificial newspaper and aiter said hearing the Council may �-i ��- �o� �%I'��Y OF` SAINT PAUL = - OFFICI� OF TFI� CZTY COIINCZL �)l1�a�! ' ff�Y�i�Y�3��► "�'�q,�� " - D d f e ; "�arch 26, 1984 C4MMfTT � E RE P � RT TO = Sa�nt Ppu i City Counci t F�� M : Comrnirtee Oh Energy, Utilities, and Environment C M A 1 R Counci 1 man Wi 11 i am L. F�i 1 son � ��,... '`��"`�xtending the steam.franchise and providing for steam rates . and a reso u on directing the Clerk to publish notice. (Ordinance was befor.e Council on 3/22/84 - referred to Energy Committee) APPROVED CT!'Y HALL SEVENTH FLOOR SAINT PAUL. MINNESOTA 55102 �» �f= �y-��-a ��'r�� , H��.e.�e,a�.�so a.�t� 18.0.1 of fhaCharterof thepqaf&.Paul,and C.Y;�l�o:M�/l1:-�Mq#1i:;�lfA.-that a Pubtk Itpu�lat�AI11fe held ae A i� tL, 4 �t 10 olelock��,m.!q t6e� lblyd P1oor;SG P�ui �ty.�24i,�nt.�i, 1[ioaa�ot�:aL te�pa�ltl�l�po��,q ��wf1F be aw�iye�aa ty4�[ thne pmpodtium: .. 1. 8it Pad:�cam Coa�Jtrl1�e�w Vrodaiiae otislsiad for Nie te fSe ptT o! 8dnt Paui�itx$epf�b4l0.1965: 2:The tra�t tWder�ee Na`19/�! for ata6r p�btte irtUit,9�ts Dtopoad to ba�l fw�an�qo��' aspfee D�,mtiu�E1,1916;� S.The latalm nts iar8er Ordip�noe No. l�Ylb ue propotcd W M made perman�nt,. . Dated A�ail S.lYN. ALBSRT B.OI801'fcCit�Ckrk (AprU 7,1!/p � o.�C � 1 �� y-�o� S 7 ..._-- _.-- NOTICE OF PUBLIC HEARING ON STEAM RATES Notice is hereby given pursuant �to Section 16 . 03 of the Charter of the City of St , Paul , and C.F . No . g�-4�� , adopted April 3 , 1984, that a public hearing will be held on April Iq t''� 1984, at �� o' clock a.m. in the Council Chambers , Third Floor , St . Paul City Hall, � �—ia—�T�r-�}��, St . Paul, Minnesota, at � which hearing testimony and statements will be received on the following three propositions : 1 . Saint Paul Steam Company will cease production of steam for sale in the City of Saint Paul after September 30, 1985 ; 2. The franchise under Ordinance No . 15742 for steam public utility service is proposed to be extended for an additional year , to expire December 31, 1985 ; and 3 . The interim rates under Ordinance No . 16995 are proposed to be made permanent . n�-rcl� HPR� �- 3� � 9S'-f 14-�� ,. 4�s� /Y � �TY c. L. L�Y /'►PR�� 7 � Iti �� t s- � . . ' �� ,� � r , � i. . / � . . w , �,/ � � � , , , . , . , . , , � � �'4��► . ,. � , . , , � ' � _ � ; • , � � . �� , _ ,� ; , , . i . , ,'� �.: , � , . ,. � , ;� } . , . � . • , _ , , ' , , . ; . . , , . � . � � - _ . . • ,. - �.. _ , Janvary li, 1�3� , - ) , .� , . � . _ _ , : , ,. ;t . , \ , , ' - . . .. . � . � � � ' . , ' .. .� � . . .. . . � . . .. :Y � ' , � ! ` . . . � _ . . .. ' ., ' . . . . . '� . , . . � . . I� , _ . . .. . �. � . � ' ,. ' � .�` � .� . ' . . � � ; .� � . .. ' .. , �e�.Ia�i W�1.iiam �Tf�e4n< , , - � :: `;�' , , Cl�t3,�ma�, �aar�g,q, Ut#liti�s & �nvironment Committte � ' � �. . 7th F�QOr;, 8itp �ali � _ � � , , r _ • � , . �D�ar 80�� Wils�; � ; f � � . - , � . � - , _ The Ct�9 Couuncill referrecl to thQ Baergp, ��1�:�� & �Euvir�nt G;�i��ae , i ? , tha pt��.tfon of St. Psul $tasm Ctnng�ny;. 7anc. �c�r.an ia�r�a�ra �n► steau , , ` r�ttsi-�iifa�tiva .�l+ebruas� 1�, 1983� , �. � - - , i ' Vary�',t�riy yotl�s� , � � , ; . .. _ , . :Al�ert-B. Olson : ' �� ' � , i Cit�i Cleic'jc . , � i , , , - ' ABO/sch , • � : � �� . - . ; : , . , , - � . . _ , �, , , _ , , , , I , , i , , � . ' , � , � , � � , . , . , . . - ' ' �i � \ ' � ' t � . . . . . . � . . . . . � . ' .. � . f � � . � � ..� � .. � � . � . � .�� . �� ! . , . . , ." .c, :. . .. , , . . -. .�, . . . - . �� . . . . . ;. . t . . , �. ... ., � �•,� �. . .. .. . . . .� . . , , - ' . � . - . 1 ; ' . . . i . . . . . . � '. , _ , ' . . .. ,� .,\ � . 1,. r; . .. `. . . . .. .. . � . _ � � . . . �. i ' I . ,I I " ,i C /. � - , , � � " � , , , • � �� . � � , . � . _ , . ' � ' ' � � I � � � . , r i� 1 j J , , ', , ' - i . � � .1 . � � + �r ; � . " _ �� (,. , � . . \��'� � � ' .� �� ; , , , � � �� : � �� _ � ;; i , �., • �� . � . , , c. s. � � . , ,. , . . � � FILED SAINT L�� Ju �� p.`tP� �� PAUL STEAM �'��Yc�_r�;��s �� COMPANY - -, FiGc .��. INCORPORATED ^EY.�-::'. �.�?, an affiliate of the Saint Paul District Heating Development Company, Incorporated December 27 , 1982 138 Bremer Building � 417 North Robert Street Saint Paul, MN 55101 (612) 297-8955 �,o The Honorable Mayor and Council of the City of St . Paul City Hall and Courthouse St. Paul , MN 55102 Gentlemen: The St . Paul Steam Company (SPSC) hereby files for an increase in firm steam rates effective February 15, 1983. Increases in operating costs and a decline in steam use due to conservation measures and fuel substitution by several major customers have caused SPSC to incur a deficit of $174 ,394 for the year ended . September 30, 1982 . Without a rate increase , a larger deficit is projected for the current year. As a non-profit corporation with- out retained earnings or accumulated working capital , SPSC cannot absorb these deficits, which must therefore be passed on to steam customers. ' SPSC' s proposed new firm steam rate schedule , summarized in Exhibit A, adjusts each rate block to include an additional $2. 50 per thousand pounds (Mlb) for fuel costs now treated as fuel adjust- ment and increases this adjusted base rate by a uniform 16.9 per- cent . No change is made in the monthly minimum charge. The rate for interruptible steam is unchanged except for the inclu- sion of current fuel adjustment in the base rate. This rate is available to customers who have operable boilers and who agree to switch from steam to an alternate fuel when steam demand exceeds the capacity of the SPSC system. By keeping interruptible steam competitive with boiler fuels, SPSC hopes to increase interruptible sales so that they will provide a greater contribution to covering the fixed costs of operating the system, reducing the amount which must be recovered from firm customers. Exhibit B shows the current relationship between interruptible steam and boiler fuels. The new rate schedule is projected to produce F.Y. 1983 revenues which exceed expenses by $132,774. This is less than the deficit incurred in FY 1982 , as shown in Exhibit C. These projections assume a normally cold winter and take into account expected in- December 27 , 1982 The Honorable Mayor and Council of the City of St. Paul Page -2- creases or decreases in steam consumption based on a customer survey conducted in September 1982. An inflation rate of 6 per- cent is assumed for expenses where better information is not available. ' Even with this surplus, Exhibit D shows a projected cash deficit of $94,099 at the end of FY 1983, which must be met by means of deferral of payments or short term borrowing. It is expected that the increase in unit revenues resulting from the current request and the possibility of cost sharing with the DHDC hot water dis- trict heating system in subsequent years will restore SPSC to a break-even position. This is the first increase in the base steam rate since 1980-81 , when NSP was granted an increase of 18. 5 percent . Since that in- crease was requested, the consumer price index for the Twin Cities area has risen by 19.9 percent . Natural gas, the major alterna- tive fuel , has been increasing by more than 20 percent annually during this period. We believe that this request is clearly � reasonable in light of these factors. This. rate increase is tempered by several factors related to the • transfer of ownership of the Third Street Plant to DHDC and the steam distribution system to SPSC. First , a required capital expenditure of $4 to 12 million has been avoided as a result of the demonstration of air quality compliance through improved plant operations. Second, no allowance is needed for return on invest- ment , since SPSC is a non-profit corporation. Third, as noted above, cost sharing with DfIDC will help to hold down increases in various costs; in particular , DHDC has proposed to terminate lease charges to SPSC for use of the Third Street Plant beginning in January 1983. Pursuant to Section ? of ordinance number 15742, as amended and co�ified as Chapter 502 of the St. Paul Legislative Code and as transferred by NSP, SPSC petitions the Council of the City of St . Paul to review the company ' s steam utility operation and to pre- scribe reasonable rates which the company may charge for service billed after February 15, 1983, as shown in Exhibits E-1 and E-2. If the Council is unable to review the filing and grant the reques- ted increase by February 15, 1983, SPSC requests that an interim rate adjustment equal to the requested rate be granted as of that EXHI�IT P ST. FAUL STEAM COM�ANY INTEF�UFTIELE STEAM RATES COMFA�ED TO OIL AND GAS 19B?-8ti HEATING SEASON #� OIL #4 OIL #� OIL INT GAS INT STEAM COST PE� UNIT .978/GAL . 885/GAL u.8v/GAL .449/CCF 8.�5/MLB MM�TU CONVE�SION . 138 . 146 . 15 d. 1G 1. ��C> COST FE� MMBTU 7. ��9 b. Ub 5.3� 4.49 8. �5 CITY FFtANCHISE FEE C� O �� -�•=9 ��• �i TOTAL CHAFcGE/MMHTU 7. c)9 6.Ob 5...?,:� 4.88 8. 97 EFFICIENCY FACTOR . 65 .65 .65 . 65 1 .0�� END USE COST/MM6TU 1l�►. 9�� 9.�3 8.�1 7.51 8-97 BOILEF� MANf}OWEFt 1 .5C� 1.�t> 1 .5�� 1 . 50 ��•�� TOTAL COST/MMPTU 1�. 4C� 1U.83 9.71 9. ��1 8.97 SAV I hfGS PEFi MMbTU USING INT. STEAM �.4= 1 .86 u. 74 C�.t�4 OI L PF�I CES AS �UOTED E�Y tCOCH O I L COMFANY ON 11/8/H� I NTEF'tF:UFT I EtLE GAS F'ER NSF' FORECAST (AVG OF' 198� AtVD 198,:�) I NTEF:RUPT I fiLE STEAM RATE I NCLUDES FUEL ADJ USTI"IENT AS OF SEF'T. 198� 12/27/8� • EXHIRIT C ST. PAUL STEAM COMPANY FINANCIAL �ESULTS/FROJECTIONS 16. 9c_�% INCREASF F. Y. 198� FY 19B� % CHANGE. FFOJECTED ACTUAL WITH VS. 8�' INCREASE ACTUAL _______________��_=_=__________________=_______=__=__=_____ ML�S SALES FIRM 4147�7U 3�9195 �1�965 —1�. 59 I NTERFtUF'T I E�LE 721 t�l"� 6.?•47U 5751 C� —9. ?9 TOTAL 48660�� 4��66� �71475 —1�. 11 MMbTU FUEL COAL 68�26C� 7c.�1793 76U9C�6 9.42 GAS 4��UU 29USbU B61 UC� —7C�. �7 TOTAL i 1C17560 99�'�' 847G�76 —14. 6� _______________________________________________��___—____—_ (�> (�) (�) (F'CT) REVENUES OFERATING REVENUE FI�M SALES 4bb1282 �849478 :6�3c77� —�.88 I NTERFt SALES 5..�,9116 4946G7 45454b —B. 1�� FORFEITED DISC 1U44c� 7�9�4 .�`-JGUO -6J. 73 TOTAL �2.:,C�B.wB 4417u39 4102618 —7. 1� INTEREST INCOME 66135 �4797 18468 —bb. '�c.> ------------------------------------------------------------ TOTAL F:EVEtVUES ��9b97� 4471836 41i1t�86 —7.84 ------------------------------------------------------------ EXPENSES � OFEFtATING EXF'ENSE5 FUEL AND ENEFi6Y COAL SiLC��J4 14�b16V 14664:�4 �.8� NATUFcAL GAS 149142� 1U28748 �t�u616 —51 . 34 TOTAL FUEL 2711b76 �454868 1967C��C� —19. 87 PLAhiT OF'EFt Rc MNT LABOf Q,c E+ENEF T TS 8JElJ�� 81�s51 e886�4 9.26 WATER,ELEC, � CHEM ��9c.7.�U 269t�87 256666 —4.61 PLANT LEASE �9��68 �4950C► 955C�C� —72.68 MA I NT. °u•. CONTF;ACT 1�C�57�a A2607 8955U 8. 4C� PLANT G&<A, I NSUFt. 11779�7 12�5�9 1 L�3168 7.8C� TOTAL FLT O°cM 16Ct7?5S 16�BG74 146�558 —1 i u. 65 D I STFt SYST MA I NT ��6�C�OU 26�17t� 27896C� 6. C�c� GENEFtAL �C ADM I N 13�C�GC� 2��439U 1797U2 —12. vB DEFREC I AT I ON C� 7t�9�� 7��6.°it> 3.8� TOTAL OF'EF� EXP 48189�4 46.11435 396�89U —14. 43 INTEF�EST EXF'EIVSE 142�7 14794 2�42� 71 .65 ------------------------------------------------------------ TOTAL EXRENSES 4B��161 4646229 3988:�1� —14. 16 ------------------------------------------------------------ SUF7PLUS (DEFICIT) 46�81� —174393 1��2774 ____________________________________________________________ 12/�7/82 EXHIEtIT A ST PAUL STEAM COMPANY - F'ROPOSED RATE SCHEDULE OLD + FUEL N,EW RATE MLB E+ASE ADJUST W/INCREASE BLOCF; FiATE �.50 16. 9C�% FIRST 2t�G 1U. �4 . 1?. B4 1�. C�1 NEXT 3C►O 9. 46 11 . 96 1.:r.9B NEXT SC�U 8. 4� 1U. 9� 1�. 7B NEXT �C�C�U 7. 7i 1C�.2? 11 . 95 OVER ��UU 6. 98 9. 48 1 1 .C�B 1�/27/B2 EXHIPIT D SPSC PROJECTED CHANGES IN CASH - FY 198' SOURCES OF CASH: EXCESS OF FEVENUES OVEF EXPENSES 1�2774 ADD: DEPRECIATION 7�6�C� 2�64�4 DECREASE IN ACCOUNTS RECEI•VA�LE ��B4� SHORT TERM BANY•,� LOAN 54C>Ot��► TOTAL SOUFtCES 78U2b8 AP'PL I CAT I ONS OF CASH REPAYMENT OF SHORT TEFiM PANF: LOAN 54C7UUC� DECREASE IN ACCTS PAYAE�LE « ACCR. LIAB. �49��49 I NC�EASE I N L I NE MA I NTENAIVCE F'.ECE I VABLE 1��794G CAFITAL EXPENDITURES �.:�OVU TOTAL APPLICATIONS 93C�?89 I NC�EASE (DECf�EASE) I N CASH -15C��21 CASH PALANCE, E+EG I NIV I NG OF YEA� 5592? CASH BALANCE, END OF YEAFt -94G99 � 12127/8� � � � EXHIBIT E1 SAI NT PAUL STEAM COMPANY INCORPORATED :_�;�,�:n" - ;::,,;�: an affiliate of the Saint Paul District Heating Development Company, Incorporated 138 Bremer Building ' 417 North Robert Street ST. PAUL STEAM COMPANY Saint Paul, M N 55101 (61�297-8955 .�� Rate Schedule for Steam Service (Firm) AVAILABILITY: Available to commercial and industrial customers for general use of steam service in accordance with franchise until September 30, 1985. Steam service furnished from low pressure mains is a�ailable from September 1 to May 31 , inclusive; and steam service furnished from high pressure mains is available the entire year. RATE: First 200,000 lbs. of condensat� per month @ $15.01 per 1000 lbs. Next 300,000 lbs. of condensate per month @ $13. 98 per 1000 lbs. Next 500,000 lbs. of condensate per month @ $12. 78 per 1000• lbs. Next 2,000,000 lbs. of condensate per month @ $11. 95 per 1000 lbs. Excess lbs. of condensate per month @ $11. 08 per 1000 lbs. PROMPT PAYMENT PROVISION: A charge of 5$ will be added to net bill, computed at the rate shown above, which charge shall constitute a discount from gross bill for payment within the discount period. MONTHLY MINIMUM CHARGE: $20. 00 net per meter. FUEL CLAUSE: There shall be added to or deducted from the net monthly bill, 2. 2� per thousand pounds of steam for each one cent increase above or decrease below $2. 50 per million BTU in the average cost of fuel used during the preceding twelve months by the steam production plant used by St. Paul Steam Company, including related fuel handling costs. ' SURCHARGE: A surcharge of 8. 7� will be included in the gross and net monthly bills computed under this rate schedule. PROPOSED EFFECTIVE DATE: For all use billed after February 15, 1983 . � ' � EX�iIF3IT E2 SAINT PAUL STEAM COMPANY INCORPORATED .,,N, }.,,:� °, an affiliate of the Saint Paul District Heating Oe�relopment Company, incorporated 138 Br�emer Building ' 417 North Robert Street ST. PAUL� STEAM COMPANY Saint Paul, M N 55101 (612)297-8955 Rate Schedule for �� Steam Service (Interruptible) AVAILABILITY: Available on an interruptible basis to commercial and industrial customers that are located on portions of the Company' s steam distribution system having adequate capacity to serve customer' s interruptible load without impairing service to other customers. Extensions or enlargement of the Company' s distribution facilities required to .serve an interruptible load will be made in accordance with the Company' s General Rules and Regulations. The total capacity of all interruptible customers shall be limited to the excess capacity of Company's steam production plant after service requirements to its firm customers are met. � Customer will agree to (1) cur�ail use of steam whenever requested • to do so by the Company; and (2) provide necessary energy requirements during curtailment from another source. This rate will be in effect commencing with the meter reading of October and ending with meter reading of May of the following year. During the meter reading months of June through September, steam service will be available under the steam service (firm) rate in effect at that time. CHARACTER OF SERVICE: The delivery of steam hereunder shall be curtailed upon request of Company. Such requests shall be made as far in advance as possible. TERM OF AGREEMENT: Interruptible Steam Service agreement shall be for a term of not less than one year. Upon expiration of the term, agree- ment remains in effect until terminated by at least thirty days' notice by either party. � RATE: Per 1,000 lbs. $8 . 25. PROMPT PAYMENT PROVISION: A charge of 5� will be added to net bill, computed at the rates shown above, which shall constitute a discount from gross bill for payment within the discount period. MONTHLY MINIMUM CHARGE: The minimum bill for service rendered hereunder shall be $20. 00 per meter, the amount prorated for curtailment periods. . . ' ' EXHIBIT E2 Page 2 Steam Service (Interruptible) FUEL CLAUSE: There shall be added to or deducted froin the net monthly bill 2.2G per thousand pounds of steam for each one cent increase above or decrease below $2. 50 per million BTU in the average cost of fuel used during the preceding twelve months by the steam production plant used by St. Paul Steam Company, including related fuel handling costs. ADDITIONAL CHARGE FOR USE OF STEAM DURING CURTAILMENT: If customer fails to curtail use of. ._st�am when requested to do so by Company, customer shall pay in addition to the above rate an amount ot $15. 50 Per thousand pounds of steam used in excess of the volume to which customer was requested to curtail. Such payment, however, shall not preclude Company from shutting off customer' s supply of steam in the event of customer' s failure to curtail his use thereof when requested to do so. EMERGENCY STEAM SERVICE FOR INTERRUPTIBLE STEAM CUSTOMERS: Emergency steam service of interruptible steam customers during periods of curtailment may be available if Company' s ability to furnish such emergency service will not, in Company' s judgment, compromise Company' s ability to provide firm steam service to its firm steam customers. � Emergency steam service to curtailed interruptible steam customers will be approved by Company provided: - 1. Emergency steam service is requested by customer and such request is confirmed in writing no later than 48 hours after the initial request. If the request is in writing, the 48-hour provision is fulfilled. 2. The emergency is in the nature of a breakdown of standby equipment which could not reasonably have been foreseen by customer. The rate for emergency steam service shall be $_11 . 50 per 1 , 000 pounds of steam used during the emergency period. The emergency period shall end when customer' s standby equipment is repaired and customer has notified Company or the end of the curtailment during which the emergency steam service was requested. SURCHARGE: A surcharge of 8.7� will be included in the gross and net monthly bills computed under this rate schedule. PROPOSED EFFECTIVE DATE: For all use billed after February 15, 1983 . SAINT �l��o PAUL �_c �� (� 3� ;�� '�� STEAM , ; �. :,,,� ��^,�� COM PANY . � . INCORPORATED :., ; .,,=�: = , an affiliate of the Saint Paul District Heating Development Company, Incorporated December 2? , 1982 138 Bremer Building � 417 North Robert Street Saint Paul, M N 55101 (612)297-8955 �� . The Honorable Mayor and Council of the City of St . Paul City Hall and Courthouse St. Paul , MN 55102 Gentlemen: The St . Paul Steam Company (SPSC) hereby files for an increase in firm steam rates effective February 15, 1983. Increases in operating costs and a decline in steam use due to conservation measures and fuel substitution by several major customers have caused SPSC to incur a deficit of $174 ,394 for the year ended September 30 , 1982. Without a rate increase , a larger deficit is projected for the current year. As a non-profit corporation with- out retained earnings or accumulated working capital , SPSC cannot absorb these deficits, which must therefore be passed on to steam customers. SPSC' s proposed new firm steam rate schedule , summarized in Exhibit A, adjusts each rate block to include an additional $2. 50 per thousand pounds (Mlb) for fuel costs now treated as fuel adjust- ment and increases this adjusted base rate by a uniform 16.9 per- cent . No change is made in the monthly minimum charge. The rate for interruptible steam is unchanged except for the inclu- sion of current fuel adjustment in the base rate. This rate is available to customers who have operable boilers and who agree to switch from steam to an alternate fuel when steam demand exceeds the capacity of the SPSC system. By keeping interruptible steam competitive with boiler fuels, SPSC hopes to increase interruptible sales so that they will provide a greater contribution to covering the fixed costs of operating the system, reducing the amount which must be recovered from firm customers. Exhibit B shows the current relationship between interruptible steam and boiler fuels. The new rate schedule is projected to produce F.Y. 1983 revenues which exceed expenses by $132 ,774. This is less than the deficit incurred in FY 1982 , as shown in Exhibit C. These projections assume a normally cold winter and take into account expected in- December 27 , 1982 The Honorable Mayor and Council of the City of St . Paul Page -2- creases or decreases in steam consumption based on a customer survey conducted in September 1982. An inflation rate of 6 per- cent is assumed for expenses where better information is not available. ' Even with this surplus, Exhibit D shows a projected cash deficit of $94,099 at the end of FY 1983, which must be met by means of deferral of payments or short term borrowing. It is expected that the increase in unit revenues resulting from the current request and the possibility of cost sharing with the DHDC hot water dis- trict heating system in subsequent years will restore SPSC to a break-even position. This is the first increase in the base steam rate since 1980-81 , when NSP was granted an increase of 18 .5 percent . Since that in- crease was requested, the consumer price index for the Twin Cities area has risen by 19.9 percent . Natural gas , the major alterna- tive fuel , has been increasing by more than 20 percent annually during this period. We believe that this request is clearly reasonable in light of these factors. . This rate increase is tempered by several f actors related to the transfer of ownership of the Third Street Plant to DHDC and the steam distribution system to SPSC. First , . a required capital expenditure of $4 to 12 million has been avoided as a result of the demonstration of air quality compliance through improved plant operations. Second, no allowance is needed for return on invest- ment , since SPSC is a non-profit corporation. Third, as noted above, cost sharing with DFIDC will help to hold down increases in various costs; in particular , DHDC has proposed to terminate lease charges to SPSC for use of the Third Street Plant beginning in January 1983. Pursuant to Section ? of ordinance number 15742 , as amended and co��ified as Chapter 502 of the St. Paul Legislative Code and as transferred by NSP, SPSC petitions the Council of the City of St . Paul to review the company ' s steam utility operation and to pre- scribe reasonable rates which the company may charge for service billed after February 15, 1983, as shown in Exhibits E-1 and E-2. If the Council is unable to review the filing and "grant the reques- ted increase by February 15, 1983 , SPSC requests that an interim rate adjustment equal to the requested rate be granted as of that December 27, 1982 The Honorable Mayor and Council of the City of St. Paul Page -3- date. This effective date is essential for SPSC to obtain the revenues needed to meet current operating costs. Your early consideration of this application will help SPSC to continue providing reliable steam heating service to downtown St . Paul. Sinc rely, , F-`� � ,��Z ans 0. man Presiden HON:gr . Enclosures EXHIEaIT A ST� PAUL STEAM COMPANY — F'FcOPOSED FiATE SCHEDULE OLD + FUEL NEW f,ATE MLB BASE ADJUST W/INCREASE PLOCk: FtATE �. Sc� 16. 9u'I. FIRST 2��C� lU. .:�4 � 12. 84 1�.C�1 NEXT ?��C� 9. 46 11 . 96 1:s.98 NEXT �� 8. 4� 1U. 9' 1�. 78 NEXT 2GC�� 7. 7� 1U.22 11 .95 OVER �C�UU 6. 98 9. 48 11.U8 1�/27/B.� r ` V � � �� 1 � �- ��—�� l - . ��l ) � �� . �n� � �o�� e � �,�w1 ► � � �� a� � � �� r� � . � /q_, � f cir .� � , � � �� G�� , . �4-� �� . � � - � �� ,�� ; ,6u : � � �� r� - ; �� f ��,e. a�c . 3 Gt� � ��Q �D � �,� / �- ; �� . . . . �y-��.° EXHIBI�T b ST. PAUL STEAM COMPANY INTERRUPTIBLE STEAM RATES COMFAFcED TO OIL AND GAS 198�-0:� HEATING SEASON #� OIL #4 OIL #5 OIL INT GAS INT STEAM COST FER UNIT . 978/GAL . B85/.GAL c�. BU/GAL . 449/CCF 8. �5/MLB MME{TU CONVEFtS I ON . 1�+8 . 146 . 15 C�. 1(.> 1 . ��C� COST F'ER MMBTU 7. (�9 b.Ub �. 3' 4.49 8. 25 C I TY FF;ANCH I SE FEE �� U c.7 C�. �9 c.�-7� TOTAL CHARGE/MMEsTU 7. 09 6. c76 S. ,�? 4.88 8. 97 EFFICIENCY FACT�R .b5 . 65 . 65 . 65 1 .00► END USE COST/MMBTU 1l"►. 9�a 9.3� 8.21 7.51 8. 97 BOILER MANPOWER 1 .5�� 1. St� 1 .5G 1 .5C� C►.C�V TOTAL COST/h1MbTU 12. 4�� 1U. 83 9. 71 9.t�1 8.97 SAV I NGS F'EFi MMBTU US I NG I NT. STEAM �. 4� 1 . 86 t7.74 U. C>4 OIL PRICES AS QUOTED E�Y F::OCH OIL COMPANY ON 11/B/8? I NTERKtUPT I E�LE GAS PER IVSP FOF.ECAST (AVG �F 1982 AtVD 19B3 3 INTERFtUPTIPLE STEAM RATE INCLUDES FUEL ADJUSTh1ENT AS OF SEPT. 198� 12/27/B2 EXHI�IT C ST. PAUL STEAM COMPANY FINANCIAL RESULTS/P�OJECTIONS 16. 9��% INC�EASF F. Y. 198? FY 19Bti % CHANGE FFOJECTED ACTUAL WITH VS. 8� INCREASE ACTUAL ____________________________________��____�_��__—_—_________ ML�S SALES FI�M 4147C�C� 3�919� �1�965 —12.59 I NTERRUF'T I BLE 7�1 t�t� b�47�] 5751 t> —9.39 TOTAL 4868C��? 4��6b5 �71475 —1�. 11 MMbTU FUEL COAL 68�if�C1 7t7179?r 76U9U6 8. 4� GAS 4^^c��UU 29U56�� 86117C� —7C�. '7 TOTAL 1 1 C�756�:� 99.�'�' 847uC►b —14. 65 (�) (�) (�) (F'CT) FiEVENUES OPERATING REVENUE FIRM SALES 4661282 �849478 �623U72 —�.88 INTEF�R SALES 559116 4946U7 454546 —B. iU FO�FEITED DISC 1U44c7 72954 25t�u0 —6�. 7� TOTAL 52�C�B.:18 4417�739 41 C��618 —7. 12 IIVTEREST INCOME 661�5 54797 184b8 —66. �0 ------------------------------------------------------------ TOTAL �.EVENUES 5�96973 447183b 4121�'�86 —7. 84 ------------------------------------------------------------ EXPENSES ' OPEFtATING EXFENSES FUEL AND ENEFiGY COAL 1�2t�c54 142616U 14b64C�4 �. 8� NATURAL GAS 149142? lc.�^c87Ct8 50Ublb —51 . 34 TOTAL FUEL �711b7b �454868 19670.?O —19. 87 PLANT OFER R�c MNT LAbOR u E►ENEFITS BJbJiC) 81��51 ee8b54 9.26 WATEFt,ELEC, Ec CHEM :�9c:u:?U �69(:u87 �56666 —4.61 PLANT LEASE 28��68 �495GG 955t>C� —72. 68 MAINT. t< COIVTRACT 12c:�,�.,7�a A26C�7 89550 8.4U PLANT Gt<A, I NSUR. 1 1779U 1�:�529 1��16B 7.8U TOTAL F'LT t7uM 16��7258 16'8U74 146355g —1u. 65 D I STR SYST I`1A I IVT �tib�C�C�U �b,:�17t� �7896�� 6. (.�c7 GENEFtAL u ADMIN 135t�UC� 2C�439u 1797U2 —12.08 DEFREC I AT I OtV �� 7t�93� 7�65t� 3.8� TOTAL OF'EFt EXP 4818934 46�143� �96�89� —14.4� INTEREST EXFENSE 142z7 14794 2542�� 71 .85 ------------------------------------------------------------ TOTAL EXP'ENSES 48�?161 464b«9 �98831� —14. 16 ------------------------------------------------------------ SURPLUS (DEFICI7l 463@12 —17439� 1�2774 ____________________________________________________________ 12/27lB2 �^�!- � �•._-� ^ EXHIBIT D SPSC FF�OJECTED CHANGES IN CASH — FY 19B:� SOUFiCES OF CASH: EXCESS OF FiEVENUES OVEF� EXPENSES 1�2774 ADD: DEFFtECIATION 73b5C� �ub4�4 DECREASE I N ACCOUNTS RECE I.VAE�LE 3�845 SHOFtT TEF�M E+ANt;' LOAN 54t�C�OC> TOTAL SOURCES �$U�68 AP'PLICATIONS OF CASH REPAYMENT OF SHOFiT TEFtM BANh.: LOAIV 54GC��>C� DECREA5E I N ACCTS FAYAE�LE << ACCFt. L I AEc. �49L 49 INCREASE IN LINE MAINTENANCE FtECEIVABLE 1t�794u CAF'I TAL EXF'END I TURES 33a��U TOTAL AFPLICATIOhtS 93U289 I NCFtEASE t DECREASE) I N CASH —15C�t�21 CASH HALANCE, HEGIMIVING OF YEAF� 5�9=� CASH EiALAIVCE, EIVD OF YEAR • —94t�99 12/?7/e2 , , EXHIBIT E1 SAINT PAUL STEAM COMPANY INCORPORATED . .��s.. . -3_i'�i►Si.�,,;y - .�:....a�'- an affiliate of the Saint Paul District Heating Development Company,Incorporated 138 Bremer Building ' 417 North Robert Street ST. PAUL STEAM COMPANY Saint Paul, MN 55101 (612)297-8955 �o Rate Schedule for Steam Service (Firm) AVAILABILITY: Available to commercial and industrial customers for general use of steam service in accordance with franchise until September 30, 1985. Steam service furnished from low pressure mains is a�ailable from September 1 to May 31 , inclusive; and steam service furnished from high pressure mains is available the entire year. RATE: First 200, 000 lbs. of condensate per month @ $15.01 per 1000 lbs. Next 300,000 lbs. of condensate per month @ $13. 98 per 1000 lbs. 'Next 500,000 lbs. of condensate per month @ $12. 78 per 1000 lbs. Next 2,000, 000 lbs. of condensate per month @ $11. 95 per 1000 lbs. Excess lbs. of condensate per month @ $11. 08 per 1000 lbs. PROMPT PAYMENT PROVISION: A charge of 5$ will be added to net bill, computed at the rate shown above, which charge shall constitute a discount from gross bill for payment within the discount period. MONTHLY MINIMUM CHARGE: $20. 00 net per meter. FUEL CL�USE: There shall be added to or deducted from the net monthly bill, 2. 2G per thousand pounds of steam for each one cent increase above or decrease below $2. 50 per million BTU in the average cost of fuel used during the preceding twelve months by the steam production plant used by St. Paul Steam Company, including related fuel handling costs. � SURCHARGE: A surcharge of 8. 7$ will be included in the gross and net monthly bills computed under this rate schedule. PROPOSED EFFECTIVE DATE: For all use billed after February 15, 1983 . EXHIIlIT E2 SAINT � f, �.,� i� �" �' `" PAUL STEAM COMPANY INCORPORATED . .�.�� R an affiliale of the Saint Paul District Heating Develo�nent Company,Incorporated 138 Bremer Building . 417 North Robert Street ST. PAUL STEAM COMPANY Saint Paul,MN 55101 (61�297-8955 Rate Schedule for �� . Steam Service (Interruptible) AVAILABILITY: Available on an interruptible basis to commercial and industrial customers that are located on portions of the Company' s steam distribution system having adequate capacity to serve customer' s interruptible load without impairing service to other customers. Extensions or enlargement of the Company's distribution facilities required to serve an interruptible load will be made in accordance with the Company' s General Rules and Regulations. The total capacity of all interruptible customers shall be limited to the excess capacity of Company's steam production plant after service requirements to its firm customers are met. � Customer will agree to (1) cur�ail use of steam whenever requested to do so by the Company; and (2) provide necessary ener.gy requirements during curtailment from another source. This rate will be in effect commencing with the meter reading of October and ending with meter reading of May of the following year. During the meter reading months of June through September, steam service will be available under the steam service (firm) rate in effect at that time. CHARACTER OF SERVICE: The delivery of steam hereunder shall be curtailed upon request of Company. Such requests shall be made as far in advance as possible. TERM OF AGREEMENT: Interruptible Steam Service agreement shall be for a term of not less than one year. Upon expiration of the term, agree- ment remains in effect until terminated by at least thirty days' notice by either party. � RATE: Per 1,000 lbs. $8. 25. PROMPT PAYMENT PROVISION: A charge of 5$ will be added to net bill, computed at the rates shown above, which shall constitute a discount from gross bill for payment within the discount period. MONTHLY MINIMUM CHARGE: The minimum bill for service rendered hereunder shall be $20. 00 per meter, the amount prorated for curtailment periods. � . � � • � EXHIBIT E2 Page 2 Steam Service (Interruptible) FUEL CLAUSE: There shall be added to or deducted from the net monthly bill. 2. 2� per thousand pounds of steam for each one cent increase above or decrease below $2. 50 per million BTU in the average cost of fuel used during the preceding twelve months by the steam production plant used by St. Paul Steam Company, including related fuel handling costs. ADDITIONAL CHARGE FOR USE OF STEAM DURING CURTAILMENT: If customer fails to curtail use of. st�am when requested to do so by Company, customer shall pay in addition to the above rate an amount or $15. 50 Per thousand pounds of steam used in excess of the volume to which customer was requested to curtail. Such payment, however, shall not preclude Company from shutting off customer' s supply of steam in the event of customer' s failure to curtail his use thereof when requested to do so. EMERGENCY STEAM SERVICE FOR INTERRUPTIBLE STEAM CUSTOMERS: Emergency steam service of interruptible steam customers during periods of curtailment may be available if Company' s ability to furnish such emergency service will not, in Company' s judgment, compromise Company' s ability to provide firm steam service to its firm steam customers. � Emergency steam service to curtailed interruptible steam customers will be approved by Company provided: . 1. Emergency steam service is requested by customer and such request is confirmed in writing no later than 48 hours after the initial request. If the request is in writing, the 48-hour provision is fulfilled. 2. The emergency is in the nature of a breakdown of standby equipment which could not reasonably have been foreseen by customer. The rate for emergency steam service shall be $,11 . 50 per 1 ,000 pounds of steam used during the emergency period. The emergency period shall end when customer' s standby equipment is repaired and customer has notified Company or the end of the curtailment during which the emergency steam service was requested. SURCHARGE: A surcharge of 8. 7� will be included in the gross and net monthly bills computed under this rate schedule. PROPOSED EFFECTIVE DATE: For all use billed after February 15, 1983 . ` � �j [/^ �/ lJ`-'� Q j ��. SAINT PAUL STEAM COMPANY INCORPORATED ��„�°k� r,�;;,c, �_ an affiliate of the � 0 �`�� Saint Paul District � v, �i`, ' Heating Development � � x Company, Incorporated December 2?, 1982 � ✓ f� �,,� 138 Bremer Building � ` 417 North Robert Street Saint Paul, MN 55101 (612)297-8955 - �o The Honorable Mayor and Council of the City of S�t . Paul City Hall and Courthouse St. Paul , MN 55102 Gentlemen: The St . Paul Steam Company (SPSC) hereby files for an increase in firm steam rates effective February 15, 1983. Increases in operating costs and a decline in steam use due to conservation measures and fuel substitution by several major customers have caused SPSC to incur a deficit of $174 ,394 for the year ended September 30, .1982. Without a rate increase, a larger deficit is projected for the current year. As a non-profit corporation with- out retained earnings or accumulated working capital , SPSC cannot absorb these deficits, which must therefore be passed on to steam customers. SPSC ' s proposed new firm steam rate schedule , summarized in Exhibit A, adjusts each rate block to include an additional $2. 50 per thousand pounds (Mlb) for fuel costs now treated as fuel adjust- ment and increases this adjusted base rate by a uniform 16.9 per- cent . No change is made in the monthly minimum charge. The rate for interruptible steam is unchanged except for the inclu- sion of current fuel adjustment in the base rate. This rate is available to customers who have operable boilers and who agree to switch from steam to an alternate fuel when steam demand exceeds the capacity of the SPSC system. By keeping interruptible steam competitive with boiler fuels, SPSC hopes to increase interruptible sales so that they will provide a greater contribution to covering the fixed costs of operating the system, reducing the amount which must be recovered from firm customers. Exhibit B shows the current relationship between interruptible steam and boiler fuels. The new rate schedule is projected to produce F.Y. 1983 revenues which exceed expenses by $132 ,774. This is less than the deficit incurred in FY 1982 , as shown in Exhibit C. These projections assume a normally cold winter and take into account expected in- December 27 , 1982 The Honorable Mayor and Council of the City of St. Paul Page -2- creases or decreases in steam consumption based on a customer survey conducted in September 1982. An inflation rate of 6 per- cent is assumed for expenses where better information is not available. ' Even with this surplus, Exhibit D shows a projected cash deficit . of $94 ,099 at the end of FY 1983, which must be met by means of deferral of payments or . short term borrowing. It is expected that the increase in unit revenues resulting from the current request and the possibility of cost sharing with the DHDC hot water dis- trict heating system in subsequent years will restore SPSC to a break-even position. This is the first increase in the base steam rate since 1980-81 , when NSP was granted an increase of 18. 5 percent . Since that in- crease was requested, the co.nsumer price index for the Twin Cities area has risen by 19.9 percent. Natural gas, the major alterna- tive fuel , has been increasing by more than 20 percent annually during this period. We believe that this request is clearly reasonable in light of these factors. This rate increase is, tempered by several factors related to the transfer of •ownership of the Third Street Plant to DHDC and the steam distribution system to SPSC. First , a required capital expenditure of $4 to 12 million has been avoided as a result of the demonstration of air quality compliance through improved plant operations. Second, no allowance is needed for return on invest- ment , since SPSC is a non-profit corporation. Third, as noted above, cost sharing with DfIDC will help to hold down increases in various costs; in particular , DHDC has proposed to terminate lease charges to SPSC for use of the Third Street Plant beginning in January 1983. Pursuant to Section 7 of ordinance number 15742, as amended and co�ified as Chapter 502 of the St. Paul Legislative Code and as transferred by NSP, SPSC petitions the Council of the City of St . Paul to review the company ' s steam utility operation and to pre- scribe reasonable rates which the company may charge for service billed after February 15, 1983, as shown in Exhibits E-1 and E-2. If the Council is unable to review the filing and grant the reques- ted increase by February 15, 1983, SPSC requests that an interim rate adjustment equal to the requested rate be granted as of that ' ' �: ��_ t� ,�-.ti December 27, 1982 The Honorable Mayor and Council of the City of St. Paul Page -3- date. This effective date is essential for SPSC to obtain the revenues needed to meet current operating costs. Your early consideration of this application will help SPSC to continue providing reliable steam heating service to downtown St . Paul. Sinc rely, / i �1�� ' -+1/�-� ans 0. N man Presiden HON:gr Enclosures EXHI�IT A ST FAUL STEAM COMF'ANY — FRO�OSED RATE SCHEDULE OLD + FUEL NEW FATE MLB �ASE ADJUST W/INCREASE E�LOCk; FtATE �.Sc� 16.9C�% FIRST 2C�c:� 1U. �ti4 . 12. 84 15.C�1 NEXT 3t�C� 9. 46 11 . 96 13. 98 NEXT �G�� 8. 4:'•• iU.9' 1�. 78 NEXT �C�C�� 7. 7� iC�. 22 11 . 95 OVER ��UU 6. 9$ 9. 48 11 .t�8 1�/27/8� . . �� - �r� EXHIBIT B ST. PAUL STEAM COMPANY I NTERFtUPT I E�LE STEAM F�ATES COMFAFtED TO O I L AND GAS 19B2-83 HEATING SEASON #� OIL #4 OIL #5 OIL INT GAS INT STEAM COST FER UNIT . 978/GAL .885/.GAL O. eU/GAL . 449/CCF 8.�5/MLB MME�TU CONVEF�S I ON . 1�e . 146 . 15 t�. 1 t� 1.C�� COST PEFt MMBTU 7. C�9 6.Ub 5.�,� 4.49 8. �� C I TY FFtANCH I SE FEE C� C� (.� �• �9 �•�� TOTAL CHAF�GE/MMHTU 7. 09 b.v6 5.33 4.88 8. 97 EFF I C I ENCY FACTOFt .65 .b5 . 65 . 6� 1 .c7t� END USE COST/MMbTU 1U. 9c_� 9. �? 8. 21 7.51 8.97 L�OI LEFc MANFOWER 1.5G 1.�t� 1 .�C� 1 .5C� ��.Gu TOTAL COST/MME�TU 12. 4U 1u.8? 9.71 9.C�1 8. 97 ______________________________________________________________________________ SAV I NGS PEFt MMFsTU USING INT. STEAM �ti. 4L 1 . 8b u.74 C�. C�4 OIL PFiICES AS QUOTED EcY k;OCH OIL GOMPANY ON 11/8/82 I NTEF2FiUF'T I BLE GAS P'EF{ NSP FOFIECAST (AVG OF 1982 AfVD 1983) INTERRUF'TIE�LE STEAM RATE INCLUDES FUEL ADJUSTMENT AS OF SEPT. 1982 12/�7/8� EXHIBIT C S7. PAUL STEAM COMFANY FINANCIAL RESULTS/F�OJECTIONS 16. 9C�% INCREASF F. Y. 1982 FY 198� % CHANGE FROJECTED ACTUAL WITH VS. 8� INC�EASE ACTUAL ____________________________________________________________ MLPS SALES FI�M 4147�U 3�919� �1�965 -1�.59 INTERRUPTIPLE 7�it�C� 6347u 5751t� -9.39 TOTAL 4868C�U 4��6b5 �71475 -1�. 11 MMRTU FUEL COAL 685�bt� 7ai79� 76U9C�6 8.4� GAS 4��Uu 29�56�� 8610G -7u.?7 TOTAL iin756� 99�35� 847u��6 -14.65 � ____________________________________________________________ (�) (�) (�) tPCT) �EVENUES OFE�ATING REVENUE FI�M SALES 46b128� �849478 3b23u7y -�.BS INTE�a SALES 559116 4946U7 454546 -8. 1� FORFEITED DISC 1U440 729�4 25t�U� -6�. 73 TOTAL 52�uA36 4417039 41U2618 -7. 1� INTE�EST INCOME 661�� 4797 19468 -bb. 3� ------------------------------------------------------------ TOTAL �EVENUES 5296973 4471836 41tiC7e6 -7. 84 ------------------------------------------------------------ EXPENSES OFE�ATING EX�ENSES FUEL AND ENE�GY COAL 12�U2�4 142616u 14664C14 �. 8� NA7URAL GAS 14914�2 it��87G8 50U616 -51 . �4 TOTAL FUEL ?711676 �4�4968 19670�t� -19. 87 PLANT OPER � MNT LA�OR e� PENEFITS 8JbJ1� 81��1 888654 9. 26 WATER,ELEC, � CHEM �24�2U 269�B7 2�bbeb -4.61 PLAfVT LEASE .�8��68 �495t�C> 955t�(:� -7�.b8 MA I NT. P, CONTRACT 12C>574 8�607 8955c� 8.4C� PLANT GEcA, INSUFC. 11779tU 1235�9 1i+3168 7.80 TOTAL PLT OuM ibC�7258 16�8074 146355B -lU.bS D I STF� SYST h1A I NT 365UaU 2b,��17U :78960 b. t�v GENEFtAL R< ADM I N 1��C�OC� 2U439G 1797U2 -12.t�e DEPREC I AT I Ohl �� 7t�9�� 7�65C� 3.8� TOTAL OPEFt EXF 481e934 46:;1435 39b299�7 -14.4� INTEFcEST EXFENSE 142�7 14794 ��42� 71.85 ------------------------------------------------------------ TOTAL EXPENSES 48��161 46462�9 �988313 -14. 16 ------------------------------------------------------------ SURF'LUS (DEFICIT) 4b381i -17439� 1�2774 12/27/82 EXHIPIT D SPSC PROJECTED CHANGES IN CASH — FY 198� SOURCES OF CASH: EXCESS OF REVENUES OVER EXPENSES 1�2774 ADD: DEP�ECIATION ��6�� U6424 DECREASE IN ACCOUNTS RECEI.VABLE 3384� SHOf,T TE�M bANk; LOAN 54GC�c.�C� T[]TAL SOURCES 78u268 AFPLICATIONS OF CASH REPAYMENT OF SHOFtT TERM BANK L(]AN �4�OC�t� DECREASE IN ACCTS FAYAE�LE P< ACCF. LIAB. �49L49 INCF�EASE IN LINE MAINTENANCE RECEIVAHLE 10794t7 CAF'ITAL EXPENDITUF�ES �300G TOTAL AFPLICATIOIVS 930�89 INCF�EASE (DECFtEASE) IN CASH —15a021 CASH E+ALANCE, E�EG I NN I NG OF YEAF: 55922 ' CASH BALANCE, END OF YEAFt —94099 12/�7/8� � 1 • EXHIBIT E1 SAINT PAUL STEAM COMPANY INCORPORATED .. . ,tl�� .Y :'..�. an affiliate of the Saint Paul District Heating Development ComPa�Y,Incorporated 138 Bremer Building ' 417 North Robert Street ST. PAUL STEAM COMPANY Saint Paul, M N 55101 . (612)297-6955 �.o Rate Schedule for Steam Service (Firm) AVAILABILITY: Available to commercial and industrial customers for general use of steam service in accordance with franchise until September 30, 1985. Steam service furnished from low pressure mains is a�ailable from September 1 to May 31 , inclusive; and steam service furnished from high pressure mains is available the entire year. RATE: � First 200, 000 lbs. of condensate per month @ $15.01 per 1000 lbs. Next 300,000 lbs. of condensate per month @ $13. 98 per 1000 lbs. Next ' S00,000 lbs. of condensate per month @ $12. 78 per 1000 lbs. Next 2,000,000 lbs. of condensate per month @ $11. 95 per 1000 lbs. Excess lbs. of condensate per month @ $11. 08 per 1000 lbs. PROMPT PAYMENT PROVISION: A charge of 5� will be added to net bill, computed at the rate shown above, which charge shall constitute a discount from gross bill for payment within the discount period. MONTHLY MINIMUM CHARGE: $20. 00 net per meter. FUEL CLAUSE: There shall be added to or deducted from the net monthly bill, 2. 2� per thousand pounds of steam for each one cent increase above or decrease below $2. 50 per million BTU in the average cost of fuel used during the preceding twelve months by the steam production plant used by St. Paul Steam Company, including related fuel handling costs. � SURCHARGE: A surcharge of 8 . 7� will be included in the gross and net monthly bills computed under this rate schedule. PROPOSED EFFECTIVE DATE: For all use billed after February 15, 1983. + � EXI3IIIIT E2 SAINT PAUL STEAM COMPANY INCORPORATED . �..,-- �ti� Rurin an affiliaie of the Saint Paul District Heating Development Company, Incorporated 138 Bremer Building " 417 North Robert Street ST. PAUL� STEAM COMPANY Saint Paul, M N 55101 (612j 297-8955 Rate Schedule for �� Steam Service (Interruptible) AVAILABILITY: Available on an interruptible basis to commercial and industrial customers that are located on portions of the Company's steam distribution system having adequate capacity to serve customer' s interruptible load without impairing service to other customers. Extensions or enlargement of the Company' s distribution facilities required to .serve an interruptible load will be made in accordance with the Company' s General Rules and Regulations. The total capacity of all interruptible customers shall be limited to the excess capacity of Company' s steam production plant after service requirements to its firm customers are met. � Customer wil•1 agree to (1) curtail use of steam whenever requested - � to 'do so by the Company; and (2) provide necessary energy requirements during curtailment from another source. This rate will be in effect commencing with the meter reading of October and ending with meter reading of May of the following year. During the meter reading months of June through September, steam service will be available under the steam service (firm) rate in effect at that time. CHARACTER OF SERVICE: The delivery of steam hereunder shall be curtailed upon request of Company. Such requests shall be made as far in advance as possible. TERM OF AGREEMENT: Interruptible Steam Service agreement shall be for a term of not less than one year. Upon expiration of the term, agree- ment remains in effect until terminated by at least thirty days' notice by either party. � RATE: Per 1,000 lbs. $8 . 25. PROMPT PAYMENT PROVISION: A charge of 5g will be added to net bill, computed at the rates shown above, which shall constitute a discount from gross bill for payment within the discount period. MONTHLY MINIMUM CHARGE: The minimum bill for service rendered hereunder shall be $20.00 per meter, the amount prorated for curtailment periods. + � � ' EXHIBIT E2 Page 2 � u- �-lt-� Steam Service (Interruptible) FUEL CLAUSE: There shall be added to or deducted from the net monthly bill, 2. 2G per thousand pounds of steam for each one cent increase above or decrease below $2.50 per million BTU in the average cost of fuel used during the preceding twelve months by the steam production plant used by St. Paul Steam Company, including related fuel handling costs. ADDITIONAL CHARGE FOR USE OF STEAM DURING CURTAILMENT: If customer fails to curtail use of. steam when requested to do. •so_ by Company, customer � shall pay in addition to the above rate an amount ot $15. 50 Per thousand pounds of steam used in excess of the volume to which customer was requested to curtail. Such payment, however, shall not preclude Company from shutting off customer' s supply of steam in the event of customer' s failure to curtail his use thereof when requested to do so. EMERGENCY STEAM SERVICE FOR INTERRUPTIBLE STEAM CUSTOMERS: Emergency steam service of interruptible steam customers during periods of curtailment may be available if Company' s ability to furnish such emergency service will not, in Company' s judgment, compromise Company' s ability to provide firm steam service to its firm steam customers. � Emergency steam service to curtailed interruptible steam customers will be approved by Company provided: . 1. Emergency steam service is requested by customer and such request is confirmed in writing no later than 48 hours after the initial request. If the request is in writing, the 48-hour provision is _ fulfilled. 2. The emergency is in the nature of a breakdown of standby equipment which could not reasonably have been foreseen by customer. The rate for emergency steam service shall be $_11. 50 per 1 , 000 pounds of steam used during the emergency period. The emergency period shall end when customer' s standby equipment is repaired and customer has notified Company or the end of the curtailment during which the emergency steam service was requested. SURCHARGE: A surcharge of 8.7$ will be included in the gross and net monthly bills computed under this rate schedule. PROPOSED EFFECTIVE DATE: For all use billed after February 15, 1983 . � �- � � �AINT PAUL STEAM COMPANY INCORPORATED � . �=�,.:. an affiliate of the Saint Paul District Heating Development Company, Incorporated 138 Bremer Building 417 North Robert Street May 10, 1984 Saint Paul, MN 55101 (612) 297-8955 �o Mr. Albert B. Olson City Clerk City of Saint �aul City Hall Saint Paul , Minnesota 55102 Re: Steam Franchise Extension and Final Rate Schedule Dear Mr. Olson: Pursuant to Section 17 0� Ordinance No. 17126 (Council File No. 84-400) , that legislative Ordinance granting to the St. Paul Steam Company an extension to its steam franchise and a final acceptance of the terms and conditions of such Ordin- ance. The St. Paul Steam Company agrees that it will abide ' by, keep and perform all the terms, limitations, conditions and provisions of that Qrdinance as required therein. Very ruly ours, Ha s 0. n President cc: Phil yrne William M. Mahlum, Esq. � � -�+ � c��-�c .... 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