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�� __ . : : , _