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
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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
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