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267347 WHITE - CITV CLERK �6'734'� PINK - FINANCE GITY OF SAINT PAITL �Council � CANARV - DEPARTMENT t BLUE -A�q,Yn� . . � Fll@ NO. . ti �` ncil Resolution Presented By Referred To Committee: Date Out of Committee By Date WHEREAS, an application by the Northern States Power Company for an increase in its rates for sales of electric energy in the State of Minnesota has been filed with the Minnesota Public Service Commission on May 3, 1976 and is now under consideration by the Commission as a contested hearing by its order of May 25, 1976, with the prospect of testimony to be presented in connection. with requested changes in electrical rates within the service area of the utility in the near future; and WHEREAS, an examination of the documents and statements presenting costs and investments by the utility indicate that the costs to be considered are projected, with the necessary uncertainty of future factors which cannot be anticipated accurately, that allocation of costs occurs, which may or may not be properiy determined, that rate base includes various additives, which are speculative, and that advertising expenses and charitable contributions are included, although such should now, more than ever, be borne by the investors; and �_ WHEREAS, in view of the ever a�ending rates, and the ever ascending returns to investors in such companies as Northern States Power Company, whieh have a monopolistic control oner a serni�e area guaranteed by state Iaw, and in view of the ever ascending internal funds, including retained earnings, the ; rate of return need not be as high as may have been required in the past or in areas where more speculation is involved i.n investment; NOW THEREFORE, BE IT RESOLVED by the Council of the City of Saint Paul that it petitions the Minnesota Public Service Commission to permit it to intervene as an entity representing itself and consumers within the City of Saint Paul in the pending contested hearing to be conductecl before a hearing examiner who is presently assigned to this hearing from the Minnesota State Office of Hearing Examiners, 1745 University Avenue, St. Paul, Minaesota, and to permit it to make such appearance at all proceedings by its duly authorized __ COUIVCILMEN ' Requested by Department of: Yeas Nays Christensen Hozza In Favor Levine Rcedler Against BY Sylvester Tedesco President Hunt Form Approv ity Atto ey Adopted by Council: Date , Certified Passed by Council Secretary BY ` By Approved by Mayor: Date Approved by Mayor for Submission to Council By By WHITE - CITV CLERK t ���(��w PINK - FINANCE COl1I1C11 � � � CANARV - DEPARTMENT GITY OF SAINT PAITL - s•' / BLUE -Mr;YOR � � � Fll@ NO. �-` ` Council Resolution Presented By Referred To Committee: Date Out of Committee By Date 2 . representatives. COUNCILMEN Requested by Department of: Yeas Nays � Butler _� In Favor � Hunt Levine J � Against BY Tedesco President� Sylvester ,�� 8 �� Form Appr y City A torney Adopted by Counc' • Date Certified ssed uncil Se ary � � BY BY Appro d by Mayor: Da �UN � �� Approv by Mayor for Submis 'o o Council � BY BY �et�o J�-i Z �9?8 ' � � �6���� MINNESOTA STATE OFFICE OF HEARING EXAMINERS 1745 University Avenue St. Paul, Minnesota 55104 FOR THE MINNESOTA PUBLIC SERVICE COMM ISSION 160 East Kellogg Boulevard St. Paul, Minnesota 55101 In the Matter of the Northern States Power Company, Minneapolis, M�.nnesota, H.E. DOCKET NO. for Authority to Change its Schedule MPSC DOCKET NO. E002/GR-76-934 of Electric Rates �or Retail Customers within the State of Minnesota. CITY OF SAINT PAUL PETITION TO INTERVENE . 1. Pursuant to PSC Rule 506 (a) the City of Saint Paul, a City of the first class duly organized and existing according to the laws of the State of Minnesota, hereby petitions of the Public Service Commission for leave to intervene in the above entitled proceedings. The City of Saint Paul is within the electric service area of Northern States Power Company. 2 . Petitioner does request that it be granted leave to intervene by the Commission on the fr>llowing grounds : a) that b.y the terms of Minnesota Statute5, Section 216B.16, the pe�itioner is deemed by statute interested in tYse matter before the Commission and is f�rther identified l. - �6'7��'7 by statute as a party either favorably or adversely affected by instant proceedings; and b) that the petitioner by reason of its Home Rule Charter, St. Paul City Charter, Chapter 16, and the preceeding charter has regulated and controlled the exercise of a public utility; to-wit: Northern States Power Company electric serviee, on January l, 1975; that . since the 1930' s the City has regulated and controlled Northern States Power Company in a manner similar to authority conferred upon the Commission in Minnesota � Statutes, Chapter 216B, including, in the later years, forn►al evidentiary hearings on such issues as revenue requirements and rate schedules and design involved in the instant proceedings, and the City is authorized by Minnesota Statutes, Section 216B.22 to be accepted by the Commission as amicus curiae in any proceeding brought before the Commission with respect 'to rates, prices, regulation or control of any utility operating in the City; and c) that the City as a substantial customer of Northern States Power Company caill be bound and affected � � 2 . ,Y , E�:6'7��'7 favorably or adversely with respect to its interest as municipality, as distinguished from an interest in common with other customers and the public generally; and d) that the City, through its elected off icials, represents substantial numbers of customers of Northern States Power Company. 3. The City further states and alleges as further grounds for its petition to intervene: a) that Northern S�ates Power Company' s rate filing � ; includes as operating expenses such items including, but_:not limited to, advertising, which petitioner believes exceeds the standards adopted by the commissi,on, charitable expenses, which should be excluded, and certain other costs, which petitioner questions as to reliab ility. b) that the rate filing uses a projected test year ending May 31, 1977, ra-ther than a historical test year for the determination of gross and net revenue, and, in such regard, the filing is unduly speculative without need for projection shown in the iiling, since 1975 can be adopted with factual information by a year-end calculation for problems of attrition; 3. �6`7�4"7 c) that the company ' s requested increase in revenues is . excessive, resulting from a rate of return beyond a reasonable amount and far more than that allowed by the commission in the past, without demonstrating any � need fvr it or any change in the investment market to the extent commensurate with changes in the investments in other fields of similar risks and uncertainties. d) that the company includes additives in its rate base, which are projected far into the future and does not ,Ec . _ . _ . . , - constitute used and useful plant, thereby constituting a risk to be assumed by the investor in a business rather than by the consumers; that the rate schedules � and tariffs proposed by the Company are unduly discriminatory and are not based upon cost of ser.vice � � or even value of service. 4. The City of Saint paul by Council file #k approved wi11 app�ar in these proceedings before the commission on its own behalf and on behalf of its constuners within the City of Saint Paul to protect the interests involved. 4. �6'7�'�'7 5. The City respectfully requests that if leave to intervene is granted, it be allowed to participate in these proceedings with the usual rights of a party in interest, including the privilege of receipt of all cooies of petitions, pleadings, orders and briefs filed in said matter, rights to advance notice of witnesses and e�idence, right to a pre-hearing conference, right to present evidence and cross-examine witnesses and right to purchase a record or transcript. . 6. The City hereby agrees and stipulates to be bound-��by all rules of procedure of the _Hearing Examiner of the State of M innesota and by the Commission pursuant to the Minnesota Administrative Procedures Act and the Minnesota Electric Public Utility Act (Minn Stat. 216,B.01 et, seq) for the conduct of the instant proceedings. Dated City Attorney THOMAS J. STEARNS Assistant City Attorney Attorneys for Intervenor 647 City Ha11 and Court House , Saint Paul, r9innesota 55102 Phone: (612) 298-5121 5. , �6`7�4'7 MINNESOTA STATE OFFICE OF HEARING EX�IMINERS 1745 University Avenue St. Paul, Minnesota 55104 FOR THE MIDTiVESOTA PUBLIC SERVICE COMMIS5ION " 160 East Kellogg Boulevard St. Paul, Minnesota 55101 In the Matter of the Northern States Power Coinpany, MinnEapolis, Minnesota, H.E. DOCKET NO. for Authority to Change its Schedule MPSC DOCKET NO. E002/GR-76-934 of Electric Rates for Retail Customers within the State of Minnesota. I hereby �certify that I have this day served the foregoing document upon the following named parties, by mailing a copy thereof, properly addressed and postage prepaid, to each of the parties named or where indicated, to the representatives of the parties na�ed on the attached list. • Dated: City Attorney THOMAS J. STEARNS Assistant City Attorney Attorneys for Intervenor � 647 City Hall and Court House Sai.nt Paul, Minnesota 55102 Phone: (612) 298-5121 v ry . �:6����c ( LIBERTY .PLAZA, INC. SUBURBAN RATE AUTHORITY Kenneth P. Griswold, Esq. David J. Kennedy, Esq. Rutt�nberg, Orren, Griswold & Birnet LeFevere, Lefler, Hamilton & Pearson 1230 Commerce Building 1100 First National Bank Building St. Paul, Minnesota 55101 Minneapolis, Minnesota 55402 Tel. : 224-1364 Tel. : 333-0543 CITY OF MINNEAPOLIS ST. REGIS PAPER COMPANY Arvid M. Falk, Esq. Stuart W. Rider, Jr. , Esq. Assistant City Attorney Rider, Bennett, Egan, Johnson &Artande Offa.ce of the City Attorney 1910 First National Bank Build.ing 325 M City� Ha11 ' Minneapolis, Minnesota 55402 Minneapolis, Minnesota 55415 Tel. : 339-9551� � Te 1.. : 348-2 017 MINNEAFOZIS ASSOCIATION OF BUILDING MINNESOTA ENERGY AGENCY OWNERS AND MANAGERS, SNC. MIDWEST FEDEBAL SAVINGS AND LOAN David S. Fleischaker, Esq. A��OCIATiON OF MINNEAPOLIS Berlin, Roisman, Kessler & Cashdan GREEN TREE BUILDING MANAGENIENT COMPAN 1712 N Street N.W. Washington, D. C. 20036 Barbara Linds�y Sims, Esct. Tel. : (202) 833-9070 Thompson, Hessian, Fletcher, McKasy & Soderberg MINNESOTA PUBLIC INTEREST RESEARCH GROUP 1500 Midwest Plaza Building Minneapolis, Minnesota 55402 Elliot Rothenberg, Esq. Tel. : 333-0491 3036 University Avenue S. E. Minneapolis, Minnesota 55414 Tel. : 376-7554 (FARTICIPATING STAFF) ST. PAUL CHAMBER OF COMMERCE John B. Van de North, Jr. , Esq. Holmes, Eustis, Kircher & Graven Richard Morgan & John Sommerville 4610 IDS Center O 'Connor & Hannan Minneapolis , Minnesota 55402 38th Floor, IDS Tower 80 6outh 8th Street (NORTHERN STATES POWER CO. ) Minneapolis, Minnesota 55402 Tel. : 341-3800 Leonard J. Keyes & Samuel L. Hanson Briygs & Morgan . CITY OF ST. PAUL 2200 First National Bank Building St. Paul, Minnesota 55101 Thomas J. Stearns, Esq. Assistant City Attorney ETGHT COPIES TO: 647 City Hall and Court House Leo J. Ambrose St. Paul, Minnesota 55102 Case Manager Tel. : 298-5121 Minnesota Public Service Commission Kellagg & Robert Streets � American Center Building ct_ paul . t�tinnesota �� - ' ' ' � ---- -- --------_--- -- /'' , F�It1;1ES01'A �I+Tt" 0,r=IC� C; fi�kRItiG cXri�lLrl�.pS J . ' . � �7�5 U:�lVt�t"S1i.y' r'�V��IU° `� , • � _ St. Paul , t�tinneso�a 5510Y � . . . ,( 'c� . �OP. THc t-IIi;';�SOi� Pli3�IC SEiVIC� C�:'.:�ISSIO:I d l50 East Kello�g Gc��levard ��'�`�.�� � � St. Paul , t•tir.�esota 55J01 � `y In the ��a�te� of t!-;� t;ortn���� St���� P��,;�r Cc;r.p�,;zy, ;��in�eaYolis, ilin^�s�ta, �I.�. DJ�,:�7 ir0. for �utnori ty �o Cnan��� i ts Sc�7eJul e t•,�SC D�C;;�7 ti0. r00?/G�t-7a-O3 r o� E7�c�ric Rat�s fcr P.�tai ] Custo�?rs � }:i tnin tF:e S�a�� o� t�;inn�sota. t�dTi CE �,:'�� C����R F02 F?�AP,i;,� IT IS NcP.�.BY 0�?D�(',c�J that a co��es�ed h�ariny in tf�� abovz-znti�Zed - �a�ter wilt� bz h�ld at the followl�g ti;�:es ar�d pla�es: � - . _ . August 1�-13 St_ Faul " . - �• _ - At�gttst 26-27 St. P�u i . - . . . . � Sep�e►nber ?-1 Q St. Pau1 -� .� � - ;. . S2ptenber� 14-Z7 . St. Paul � � . - -- _ - - Octaber �-S St. Paul : . � . " - .� Oct4�er 25-23 . St. Paul - : � � AlI hearings will c��.:,�nce at 9:30 a_�-�, in th� lar�� h�aring roo.�, 7tn � �loor, F�erican Cpn�er Builcfing, l60 Easi Kallogg Bouievard, St. Pa�t1, . t�i nneso.ta 5510I . . � � � . � Thi s h�aring i s heing ord�red b;r t%:z t•Einrtesot� Fubl i c Ser�ri c� � � Cv;�^.�ssio�-� �"Ca::�i�sid�t"} �o �rtvestiga�e �ne necessity for and r��so:�- � - ableress o; ceriair� elec�ricity r�te incr�ZS°5 progos�� by ;i�rth�rn State; Po.,er Com�any �hereinafter. "t�SP") in PiSP's tz�zice of Ra}e Ch�r�ge �i1�d . with the Co�rissiart If3y 3, I97b. The �o,�,�issio� is auf.�orized ta co:t�uc� ti�is h�arfng 6y l�Sir�n. Stat. s 2t53.;5 �]974}. The appr�;im3te pro��sed �ncrease i n r�tes can b� st;a��.ar�zed, by c1 ass of servi ce, zs fol l a�hs: � ' £�vznt.res � � CIass of Pr�sent PrU�osed Dirferer�ce Fercent S�rvic� R�Les P.�tes CR;�^.e �esid�nti�l � �,1c9,37E,E00 �l??,9�7,1`JO $1�,5o�,C�� I1 .Oa Co�r.:,nrl�al c�d I;��c:s�ria1 S;n;l1 Co.:,�rci�:� , - Inc;usiriai $ 93,�50,3C� $iG3 ,i��,3�� $}O,1Q9,CG:1 14.S;�� - C.araz Co�,_;�rci:�l , Ind��s-�riUl $]63,5?3,���� fISl ,S] 1 ,�'•C�� a77,�p8,0�� 11 .�� . � , , � . i..1Cif2�1G�� ��JJJ��v,l7 $ 1��l:i��v��� � � �(�i7`���kCi� �j .��, . CL� IF'S l,� ��1Jl �C ... . :_,�:t���;_itif�s $ 6,577,'I0� � _ _ � 7 ,2�5,�0� ; 717�5�� . 10.�,-� • ♦\�l},�..,.�� . �"!'f� ��l�� �i�� y�J��.l�.� �l���� 1)'f�.���1l�I��V� � �� •O!1 . . .. . . . . . . . .� � �...M', � .. _. . . . _ . . �,��J v� �s-�� J i CyU�.� 4CU i QIC� Ci C liit 1 1 i C I lJ �-i�:, a�� i . �-�..� v� t+��.. ar_Y:t :.-.�._.{ L � � o� Pub7ic Service, and are op�� �o public inspection during nor�al o�c���� „ . A lzours. A copy o� ;;SP's �ntiro rate filin� also js available for pu�lic irzsp?ction d�ring norr;al o`fice hours at ttSP's i�egio�`l oifices in ta�in��- apol3s, St. Paul , St. Clo�.��, k'in�na, P.ed »»g and TM�ar�kato. • This hearir;g ;�rill be conducted by a �leari�, `xa�<<in�r aYaoi�te� �� �;�� Chief i;ear»g Exa^ir;er oi th� Sta�e o�` i�ir.nesota , a�d �rill b� t;eld ir, _ �ompl i a�►ce ;;1 t�1 tF12 zp�l z caSl e 1 a���rs re;a�i n, to tf�e �u}� i c Servi�� Ce:�- f�1S530C1� t�le �iu:i;lRlStt'd�lVe Procn�ilT'c �lC� �iilCl:l . St�i.. �S 1�.Q�r� �—.CJ��� � the ruies of t�e O�TiG2 or hearir.g Exa�,�;�ers (i�iinn. Ru1es uc 201-ZZ2} ar:d, �o t�e exLent �hat they a:�2 rtat incansist�n� with tne ;-��wr�ng Examir.ers' rules, - t�se procedc:ral ru1 es of the Pesh3 i c S2rvi ca Co:�y� i s s i o:� (t�i2 nn. P,ul�s PSC . . 500-S21}. 5oth se�s oz rules nay be p�rchas�d from t�z G�cu::�nts Sect�o:� : . of th� C�par��nt af A�.�inis�ratzon, 1�0 Cen�ennial B�ilding, St. Paul , � Mir�nesota 55�SS [(fi72} 296-287��. Thes� rules provzd� ��nerally for th� � pracedur.al rights af tFe partzes inc�uding: r�gh�.s �o ad�iar,ce no�ice of � witn�sses and evider��e, rigi�t to a prehearing canferer�ce, rigE�ts to pre- _ ser�t evidence and cross-exa�ine witnesses, and right to pur:.hase a r�cor� or transcript. Pariies ar� en�i�Ied to issuarc� �f subpoe�as to ie�?�3 �� t�ri�resses ta a��end and pro�'uce ��cu;::ents znd ott��r evi��ncz. � Any person intznding to app�ar at i.his hearing nus� file wi�h th� .I�earlRg Exa�i�er a i{atice o� E�g��ar:�nce in thA fo:ri 'rlRlCI1 is at;a�ned � to this Order at least ten days priar ta th� ca�znce�ent of t�� hearing. � Any person �ntending to inter�en� as a par�y to ti�is f�.earing nust su��:,i� a Fe�it3on +or Leave to Inter��ene to �h° t:?aring �xa��iner and serve th? Pei1�10't Dri al1 exist;ro parties b�rore June 10. The Petition far Leati�� . . to In�erti�ene rust sLate ha,•r tF�� ��tizio:��r's �ecal ri���ts, duties, or pt'iYl�2��� na� b� G��ec���d by the Co.;,.:;i�s;e:� ' � c��c;sio:� 1I1 ttl2 rutLer•. r>,I1 gar�i�s h�ve t�e ��igti� �o be rep��:�c�rz��:i �y 1c��u; co;.�nse1 . FersC�S ut�erdi;�� ��;:? r�1;"�('i� SC:�'��U �:'lfl�� 2.�� EL'lCi?C1Ce �°;T'1(t� Qi� 4�:.' CGsn �i^Ii, ' r� -, r .::i,l;�'G�:r 1 �' i�v:.:i�;'ijlL..ci . ��J:11isy oi1} t'� Ct' O ..r_t' � l pL�i��:IS r1UL�'� �.�.'..+i r'�.�S�i� i i' '=�-�"-iC '� �n -i � t �- -» . � c� o t _�,�,_.�tinc; �. c:._1�..� o� ,.he i;:.�.,-inc�, - the r�qt;�s� n�jst bh r;���� ir, 1�1t'7tin r �c, }�,a �;��;r•ir.� E1:�:;:��r^r «t 12�st J i?�}�� pt'1C1� �i.0 t�'i� h�dT'l�lcj. {�, C0�)`� Of t�l� 1'���'::°S� S:!';St �l-.� �ei'V��u 0;! t;l? �:y��Cj' L , C~�.�d C:�� QL}i�r �iirl.��'� . . , _2� �ollowing. the cont�stel h°aring, th� C�,:r�lssion r.��y ��pi°v� �" I�13�[�"y..�� ,, ' ` � ro osed by t�SP. Ttt� Co,,�i�si cn y � . " ,,� any part o► th� rate inerease p a � � t�SP btat nay �d- ap� r�ve an overa�ll increase greater than tF�3 � groposed b,� � custc��r� tQ levels greater t�:an tt1ose �ro?ased• just ra�es for classes o� � this �,earing ., , �rs�n �o ca�test tn° proposed r��e incr�ase a� ` �ailurt of an.� P� . � a rav°d as propased. r�y resul t i n th� rates b..ing �P �5 r��.'�ter Qr ues��o�s ccncer,�in9 in�or�:�`� c'��spositian o; tn; . Any � o Assistznt � � � of inrorr:ation st��ould be asdre�s°� to J�;oli,� �. C--tz, v� � . d�sco1e y 16� �ast ,.�.11o7g 7th Floor, A.r'i�2'ZC3f1 C°��er Bulldir.g, , . . A��orney G°nera1 , . . Bou3evard, St. Pau7 , ���nnQSn�a 55101 _ . in this h?aring shasld �° addressed A11 o�'n°r questions concern 9 . to t�e. H2aring Exaniner assig:�°d �� ��1s h�eariny: � � . . G`p��E DERE7I C� � Exami:t°rs - : � r1�nn�sota State 0►fic° of 4�_aring . I745 Un1v2rsZty F+ven�� . . - St. Paul , t�t�n��sot3. 5�10'� _ . (612} 295-S1 Z 6 � - _ � served on .i�SP, �:� ��Z P�r�1es of record in �his 4rd�r sha�7 b.. a�ozs . te tiea;ing> Dockp� ,�a. ER-2-1 , ar,d a;� ail p-- - � - the previ ous t{SP Ra . . -�d interzst°d by tne DaPartr^ent o� P��1 i c S�rvi ce- dee�- . , . . - ``�` , �Y ORGLR Or ThE CC�,:-t�SSIOi. ,, . - . . � . � . 1sl �;�IE;E;�CE J. F�c�t��RS�J:t . Secretary � � . . � : . � �iAY 2 5 �?o � _ SERI�'iC� B.�tE: . . ' . _3_ f � k�� __ . : : , _