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270180 � WHI7E - CITV CLERK COl1RC11 PINK - FINANCE G I TY O� SA I NT PA U L �� CANARY -�EPARtTMENT BLUE - MAVOR File NO• T �V � � o ncil Resolution Presented By Referred To Committee: Date Out of Committee By Date [�JHEREAS, The Northern States Power Company has filed an appli- cation for steam rate increase with the City Council of the City of Saint Paul on November 13, 1977, pursuant to the terms of its steam franchise C. F. 264421, Ordinance No. 1574•2, approved December 2, 1974, and issued to said Company by the City of Saint Paul; and WHEREAS, the Company has applied to the City for the adoption of interim steam rates which would produce 'a return on its net investment rate base of 7. 750 , which would produce agproximately a 12.4� increase over and above the revenues va�ich would be obtained under the ra�tes currently approved by the Council; now, therefore, be it � RESOLVED, by the City Council of the City of Saint Paul, that the �roper city officers and agents are authorized and directed to enter into a contract with �Torthern States Power Company, a copy of which is attached hereto, permitt�ina the Comx�an� to charge interim steam rates� for bills based on meter readings on and after December 18, 1977, said rates to produce a 7. 75� return on the Coz��any's investment, as defined i.n its application equaiiinc� about a 12. 4% increase over and above steam rates currentl_y being collected under the frarichise, said interim rates to be subject to the condition that a refund of excess amounts collected from steam customers sha11 be r�turned to said customers with interest as indicated in the contract, in the amount of 6% per annum should said interim rates exceed the rates finall� approved by the Council pursuant to this rate increase application. COUNCILMEN Requested by Department of: Yeas N ays Butler Hozza [n Favor Hunt � Levine _ __ Against BY Roedler Sylvester Tedesco r �- - ��+ � 3 1977 Form Approve by City Attorney Adopted.}}�''�ouncil: Date C�fied P• s- b}' Secr�tary , BY - �' t-__ss, Approved ; a r: Date ��_ Approved b Mayor for Submission to Council � By BY p�JBLISHED DEC Z 4 1977 ♦ � . � �1� NOTICE OF HF�A,RING ON PUBLIC UTILITY STEAM FRANCHISE iQOTICE IS f�REBY G1VEN That the Saint Paul City Council will hold a public hearin� on Tuesday, the �th d�y of December, 1977 at 10:00 o'clock A.M. in the Saint Pau1 Council Chambers, 350 City Hall and Court House, Saint Paul, Minnesota for the purpose of considering adopting an interim rate increase for steam heating rates imposed by Northern States Power Company. A steam rate increase is under study by the Council and the interim rates considered will be effective as of December 18, 1977. Such interim rates sha11 continue untii final rates are adopted by the City Council. This notice is given pursuant to Section 16.03 and 16,05 of the Saint Paul City Charter, and any interested paxty may appear and be heard in regaxd to the interim steam rates. Rose Mix City Clerk Dated December 2, 1977 (December 3, 1977) � � ., � . � � � � ��/�'� � �� .��.� � � , ��,,*� � i NO'PI t,�'� � � h � ,. � !bY � +. o ' » � a�ve�a�,` � � ;�: � k '"R. l, Y�i.. . y ,.R !i.E�. R'. ��ti�w��, . ,� � y .� i ! ; �� . • '��' s�A'�y�{, i1i�%l '�.Nfi ?S�;. y�, ,�' X`t� ,�i � f�x'�t^��. _... , , .. , _ - • � � • 1 � . � I��.�,�'.1 � � AGREEMENT A This agreemenk , made and entered into this day of December 1977 by and between the CITY OF SAINT PAUL, a municipal corporatiai of th�: State of Minnesota, hereinafter referred to as "CITY" , and NORT�RDT STATES POWER COMPANY, a Minnesota Corporatio�, hereinafter referred to as "COMPANY" . WITNESSETH: � Whereas, The Company has filed an applicativn with the City on November 18, 1977, for the setting of fair and reasonable steam rates, and an investigation, examina�ion and review are necessary to deter- mine the fairness and reasonableness thereof; and Whereas, Pending a final determination of steam rates by the City, an ordinance has been introduced into the City Council allowing the Company to collect interim rates effective on bills based on meter readings on and after December 18, 1977; NOW TSEREFORE IT IS AEREBY AGREED AS FOLLOWS: That the amending ordinanee referred to above, C.F. , by its terms having allowed Company to collect interim steam rates � as specified in amended Appendix "A" attached thereto will take . effect on all bills based upon meter readings on and after December 18, 1977, pending final adoption of said ordinance and a final determination of said steara rates; that the basis for said billing �. ,1 .� , � �'�� . * � . will be a 7.75� rate of return on Company' s investment, as defined r . in the application, which approximates a 12.4y, increase in any revenue over and above that afforded by the franchise rates currently in existence; that .the Company shall commence billings pursuant to the rates contained ancl amended in Appendix "A" to the above ordinance upon meter readings on and after December 18, 1977, and that the Company will proceed with. such billing on condition that it refund � any excess amount >of said rates with interest at 6 percen� per anrYUm collected afte= December 18, 1977, over the rates as finally estab-� lished by the Gity Council. Approved as to form: CITY OF SAINT PAUL 19ssistant City Attorney MAYOR DIRECTOR-FINANCE DEPARTMENT NORTHERN STATES POWER C4MPANY VICE PRESIDENT ASSISTANT SECRETA�ttY ��,. � � � � . � , �,�� . � AGREEMED7T This agreement , made and entered into this day of December 1977 by and between the CITY OF SAINT PAUL, a municipal corporaticn of the State of Minnesota, hereinafter referred to as "CITY" , and NORTBERN STATES POWER COMPANY, a Minnesota Corparation, hereinafter referred to as "COMPANY" . WITNESSETH: ' Whereas, The Company has filed an application with the City on November 18, 1977, for the setting of fair. and reasonable steam rates, and an investigation, examination and review are necessary to deter- mine the fairness and reasonableness thereof; and Whereas, Pending a final determination of steam rates by the City, an ordinance has been introduced into the City Council allowing the Company to collect interim rates effective on bills based on meter readings on and after December 18, I977; NOW TSEREFORE IT IS HEREBY AGREED AS FOLLOWS: That the amending ordinance referred to above, C.F. , by its terms having allowed Company to collect interim steam rates as specified in amended Appendix "A" attached thereta will take . effect on all bills based upon meter readings on and after December 18, 1977, pending final adoption of said ordinance and a final determination of said ateam rates; that the basis for said billing �. , i . . . �``�'�� • will be a 7.75i6 rate of return on Company' s investment, as defined ' in the application, which approximates a 12.4� increase in any revenue over and above that afforded by the franchise rates currently in existence; that the Company shall commence billings pursuant to the rates contained and amended in Appendix "A" to the above ordinance upon meter readings on and after December 18, 1977, and that the Company will proceed with such billing on condition that it refund � any excess amount of said rates with interest at 6 percent per annum collected after December 18, 1977, over the rates as finally estab- lished by the City Council. Approved as to form: CITY OF SAINT PAUL �lssistant City Attorney MAYOR DIRECTOR-FINANCE DEPARTMENT NORTHERN STATES POWER COMPANY VICE PRESIDENT ASSISTANT SECRETARY ,{w � � M � � �. : . � � � ��'��'� Plorthern States Power Company (i�iinnesota) Schedule lA ` " Steam Utility - City of St Paul Proposed Interim Steam Service Rate Effective In The City of St Paul Availability Available to corcunercial and industrial customers for gener�l use of steam service. Steam service furnished From lo�a pressure mains is available from Seprember 1 to riay 31, inclusive; and •steam service furnished from hioh pressure mains is available the entire year. � Rate First 200 OOO lbs of condensate per month @ $8.44 per I000 lbs Next 300 000 �� @ 7.65 �� „ �� Next S00 000 `" " '� „ �� @ 6.75 �Y �� Next 2 000 000 " ' " " • �� d 6.14 �� Excess �� ,� �� @ 5.46 �� Prompt Payment Provision A.charge of S% �aill be added to net bill, computed at the Rate`.shown above, which charge shall constitute a discount £ram gross bill for pay-ment 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.ZC per thousand pounds of steam for the first whole one-half cent � increase above or decrease below $1.048 per million Btu and for each whole .cent change thereafter in the average cost of fuel used during the precedinb twelve months by the Steam Production plant of Northern States Power Company supplying steam to its St Paul distribution system and shall include the costs in FPC Account 501 - Fuel for such Steam Production plant. x,,, � � � � � � � �� .. . �� - - NorthQrn States Power Company (rlinnesrta) Schedule 2A , SLeam Utility - City of St, Paul Pa�e 1 of 2 ' Proposed Interim Interruptible St�am Service Rate Effective In The City of St Paul Availability Available. on an interruptible basis to co�nercial and industrial . customers that are located on portions of the Company's steam distribution : sysrem having adequate capacity to serve custcmier's interruptible load �aitllout impairingserviceto other customers. Extensions or enlargement of the Company's distribution facilities required to serve an interruptible load will be made ir. accordance with the Company's General Rules and Regulations. The total capacity of aZ1 Interruptible customers shall be limited to the excess capacitg of Company's '�team Production P1anC after service requirements to its firm customers are met. Customer will agree to (1) curtail his use of steam whenever requested to do so by the Campany; and (2) provide necessary energy requiremenrs during curtailment from another source, �Tliis rate will be in effect cammencing with the meter re�ding of October and ending �oith the meter reading of May of the following year. During the meter reading months of June through September, steam service t,rill be available under the Steam Service rate in effect at that time. � Character of Service The delivery of steam hereunder shall be curtailed uoon request of Campany. Such requests shall be made as far in. advance as pvssible. Rate Per ,1 000 lbs $4.06 _ Fuel Clause There shall be added to or deducted from the net monthl}• hill, 2.2� per thousand pounds of steam for the first whole one-half cent increase above or decrease below $1,048 per million Btu and for each. �ahole cent change thereafter in the average cost of fuel used durinU the preceding twelve months by the Steam Production plant of Northern States Power Coinpany supplying steam to its St Paul distribution systeri and shall include t,ie costs in FPC Account 501 - Fuel for such Steam Production plant. � Additional Charge for Use of Steam During Curtailment If customer fails tu curtail his use of steam cahen requested to do so by Company, he shall pay in addition to the above Rate an amount oF $13.00 per thousand pounds of steat^ used in excess of the volume to �ahich custome�' �aas requested to curtail. Such payznent, ho�oever, shall not preclude Company from shutting off cus�c.�ner' s supply of steam in the event of customer's failure to curtail his use thereof when requested�to do so. � «, .s • � � . . . . �Ydorthern States Power Company (i�linnesuta) Scliedule 2A Stear� Utility - City of St Paul Page 2 of 2 - Proposed Interim Interruptible Steam Service Rate � �mergency Steam Service for Interruptible Steam Customers Emergency Steam Service for Interruptible steam customers during periods of curtailment may be availabie if Company's ability to furnish such emergency service :aill not, in Campany's ' judgment, compromise Campany's ability to provide firn steam service to its firm steam customers. Emergency�Steam Service to curtailed Interruptible steam customers will be approved �y Campany provided: . � (1) Emergency Steam Service is requested by customer and such request is confinned in :writing no later than 48 hours after the initial . request. If the initiaL 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 $9.00 per 1 OOfl pounds of sl-eam used ciuring the emergency period. The emergency period shall end wtien customer's standby equipment is repaired and customer has notified Company or the end of the curtailment during which the Emergency Steam Service caas � requested, Prompt Payment Provision A charge of 5% �aill be added to the net bill, computed at the Rates shown above, which shall constitute a discount from. gross bill for payment within the discount period. rlonthly riinimum Charge The minimum bill for service rendered hereunder shall be � $20.00 per meter, the amount prorated for curtailment pe riods. � TeYm of Agreement Interruptible Steam Service Agreement shall be for a tei-m of not less than one year. Upon expiration of the term, Agreement remains in effect until terminated_by at least thirty days' notice by either party. , , `� � f . ........ _ ,...�«..,.�._-s.,�...+...�...,e.,.r,.,..u..wr�..r.a....�.,.;>n.n....�.�<...,..��.,,�..�,.. .......,._,..-.-..,..,.., .. . .. . .. ... .. ....- . . ,..Y. .- ., .v.3-�^._• yenr,.�..x.•:.*m..�.,.:..,+s..++.--� . � �.: . ' '+ Northern States Power Company . (Minnesota) Schedule 3A , Steam Utility - City of St. Paul CO�IPARISON OF PRESENT AND PROPOSED INTERIM RATES Test Year 1977 Present Proposed FIRM SERVICE - Monthly Minimum Charge . $20.00 $20.00 � First 200 M Lbs, per M Lb per Month 7..51 8.$4 Next 300 " " � 6.81 7.65 Next 500 " " " 6.01 6.75 Next 2000 " " 5.46 6.I4 Excess " " 4.86 5.46 INTERRUPTIBLE SERVICE Monthly Minimum Charge $20.00 $20.00 AI1 Use, per M Lb per M�onth 4.06 4.06 Fuel Adjustment Included in Above Rates: � $ 0.660 $ 0.000 ,'� � r . ' ' � � ��E ., � . b�`�� Northern States Power Company (Minnesota) Schedule 4A Steam Utility - City of St. Paul y CO��ARISON OF MONTHLY BILLS ON PROPOSED IiVTERIM VS . PRESENT RATES Test Year 2977 • Monthly _ Monthl Billing . � Use Present Proposed Increase Firm Steam Service M Lbs Rate Rate Amount Percent _ 10 $ , ' 75.10 $ 84.40 $ 9.30 12.4� � 50 375.50 422.00 46.50 " 12.4 100 751.00 844.00 93.00 12.4 2(70 1 502.00 1 688.00 1$6.00 12,4 300 2 183.00 2 453.00 270.00 12.4 500 � 3 545.00 3 983.00 438.00 12.4 � 1 000 6 550.00 7 358.00 808.00 12.3 2 000 12 010.00 � -,13 498.00 1 488.00 12.4 3 000 I7 470.00 19 638.00 2 168.OQ Z2.4 4 000 22 330.00 25 098.00 � 2 768.OQ 12,4 � 5 000 27 190.00 30 558.00 3 368.00 12.4 7 500 39 340.00 44 208.00 4 868.00 12.4 Fue1 Adjustment Included in Above Rates: $/MLb $ 0.660 $ 0.000 .� � f . , , � �'. � , � � . . Northern States Power Company (Minnesota) � Schedule SA Steam Utility - City of St, Paul OPERATING REVENUES, OPERATING E�PENSES, TOTAL AVAILABLE FOR RETURN, RETURN ON NET OPERATING � INVESTriENT WITH PRESENT AND INTERIM RATES _ (Dollars in Thousands) � 1977 With 1977 With Present Rates Interim Rates Revenues $ 2 69Q $ 3 003 Expenses - 2 572 2 731 Tota1 Available for Return 118 272 Average Net Operating Investment 3 504 3 504 Rate of Return on Average Net � � Operating _.Investment. , 3.37% 7.76% � Notei 197•7 is based on 9 months actual and 3 months budget. .*� � � , • . �. � . r ��.�� . Northern States Power Company (Minnesota) Schedule 6A � Steam'Utility - City of St. Paul INCO?ME STATErIENT (Dollars In Thousands) • 1977 at Proposed 1977 at ' � Present Rates Increase Interim Rates Operating Revenue . Metered Sales . Firm $ 2 327 $ 288 $ 2 615 Interruptible 143 I43 Forfeited Discounts 5 � S Gross Earnings Tax � . 215 . 25 240 Total : 2 690 313 3 003 Operating Expenses Production � Fuel - 1 OI9 � 1 019 Other Than Fuel 63T 631 � Distribution � 101 101 Customer Ac.counting 7 7 Administrative and General 176 176 � Taxes: ' Real Estate & Personal Property 136 I36 Gross Earnings 2I5 . 25 240 Social Security & Other 21 21 Federal and State Income 0 134 134 Deferred Income !+4 44. Provision for Depreciation 222 222 Total -0perating Expenses 2 572 2 731 Net Operating Income 118 272 Percent Increase on Firm Sales 12.4% � Note: 1977 is based on 9 months actual and 3 months budget. :�a. � , .