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271875 - - CITV CLERK (�ww �� FINANCE COUIICII ��� J��� DEPARTMENT GITY OF SAINT PALTL �. � � . BL 4VOR File NO. � � Council Resolution Presented By Referred To Committee: Date Out of Committee By Date WHEREAS, The Northern States Power Company ("NSP") has filed a petition with the Minnesota Public Service Commission for a 5.7g increase in natural gas rates, effective December 21, 1978; and WHEREAS, NSP has requested in its filing that its three rate zones in Minnesota be consolidated into one, thus eliminating the preferential rates in the City of Saint Paul; and WHEREAS, NSP' s supplier, Northern Natural Gas Company, will have rate increases on October 27, 1978, and December 27, 1978, which increases will be passed on to NSP ' s customers; and WHEREAS, NSP estimates that as a result of the proposed and scheduled rate increases, the annual cost to a typical residential gas customer in the City of Saint Paul will increase 26.5�; and WHEREAS, The City' s gas bill for 1977 was $420, 358, and the City can expect a similar increase in its gas rate; and WHEREAS, NSP' s rate increase comes at a time when the City's and its �taxpayer' s budgets are already pushed to their outer limits; . and WHEREAS, The City Council needs direction as to what utility policy would be most beneficial to both the City as a unit of government and to residential, commercial, and industrial con- sumers located within the City; NOW, THEREFORE, BE IT RESOLVED: 1. That the Council Investigation and Research Center is hereby authorized and directed to negotiate a contract for consideration by the City Council with a utility rate COUNCILMEN Yeas Nays Requested by Department of: Butler [n Favor Hozza Hunt Levine _ __ Against BY — Maddox Showalter Tedesco Form Approve by 'ty Att ne Adopted by Council: Date " Certified Yassed by Council Secretary BY By _ Approved by 1Vlavor: Date _ Approved by M or for Submission to Council BY - – BY - CITV CLERK �� ( ;r��� �� �EP R`T ENT GITY OF SAINT PAUL Council x BLI� ',VOR File N 0. �' Council Resolution Presented By Referred To Committee: Date Out of Committee By Date expert to provide the services required to recommend to the Council a position and response to the NSP gas rate increase; 2. That among the services to be provided under said contract, the rate expert shall a. Review NSP' s arguments for the rate increase and consolidation of rate zones; b. Review arguments in favor of retention of the rate zones; and c. Advise Council on a strategy for its partici- pation in the rate hearings; and 3. That the contract shall be for no more than $5,000 to be charged to Account 50200 (Special Fund) . -2- COUIVCILMEN Requested by Department of: Yeas Nays � Butler [n Favor Hozza h Hunt V �a __ Against BY Maddox Showalter Tedesco /��,�. Form Approved � Cit ttorne Adopted by ncil: Date —�J-3 ��]'8 ti _ Certif Yasse Council Secret�ry BY � t� d by 1Navor: te �_ ��'j 5 Approved by Mayor for Submission to Council g _ By �BUS�EO 0 CT 1 4 �97$ 3Z . � � . �a � I � ssociat � o � 2"71,�'7� �"A�qsF � � i Id i n � � � ners � P� ana � er s � � c . :�'����;:�� �� 9��• � '� >�::t ��� v' e ��'�" =�'1� � 330 NORTHERN FEDERAL �� ���� �o� CAPITOL CENTRE PLAZA ST. PAUL� h1INNE50TA 55102 Phone 246-3403 October 2, 19'78 0 F F 1 C E R 5 1978-1979 M. JEROME ROWE �'jO�Cll erson Joanne Showalter President P DAVID FRAUENSHUH Saint Paul City Council Vice President 7th Floor - City Hall NORMAN WILSON Saint Paul, Minnesota 55102 Secretary �ou�s srocco Dear �ouncilperson Showalter: � Treasurer � DIRECTORS It is my understandin� that you will be introducing a Resolution AL CLASEMAN requesting that the City of Saint Pau1 retain a Utility Rate CLIFFORD OLSON Expert to study, exami.ne and respond to the latest Northern States T. H. SEEP Power Companys gas rate increase request. ' ROHLAND H. THOMSSEN GARY TANKENOFF �e S''f,. Paul Association of Building Owners & Ma,na,gers (BOIv1A) WILLIAM BUTH SUppOY't8 the proposed Resolution and is willi.ng to provide data Execu[ive Director we have which may be of assistance to the person the City retains. St. Paul BOMA �aould like to suggest that in your Resolution you may want to include future electric and steam rate increases requested by N.S.P. While it is understood that the electric and gas increases are subject to the findings of the Public Service �otumi.ssian, it seems only normal to ha.ve a City Representative - the Rate Expert you propose to retain - intervene on behalf of the �ity which is a large utility usero I am sure you realize that steam rate increases sou.ght by N.SoP. are directed to and governed by the St. Paul Caty �ouncil. In determining the percent of increase which should be granted to N.S.P. for the steam utility, the Energy Comm�.-ttee of the City requests assistance from the City Attorneyts officeo During the last steam rate increase hearing, s�. Paul BOP�I�i noted that N.S.P. pays the City of Sto Pat�l a franchise tax of �15,000 per year which could be used to hire an expert to review in detail the steam rate increases. We do not believe that the City Attor- neyTS office should be called upon to study this type of matter. FEDERATED WITH Bi11LDING OWNERS AMD P/IANA6ERS ASSOCIATION IIVTERNATIONAL rouncilperson Joanne Showalter October 2, 197$ Page Two We do, however, believe that an expert who understands the operating methods of a utility, potential service of a utility plant, and utility financial reporting, should be hired. Zn stunma.ry, we support your idea and ask tha.t you give consideration to including electric and steam increases in the Resolution. Sincerely, ST. PAUL ASSOCIATION OF BUILDING OWNERS & MA,NAGF�.S, INC, ���,''�% � /C�'C:�L� William A. Buth Executive Director WAB��m