264736 WHITE - CITY CLERK C01111C11 264'73s ��
PINK - FINANCE GITY OF SAINT PALTL
CANARV -,�DEPARTMENT
RLUE - MAYOR File NO.
ouncil Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
RESOLVED, 'I'hat at the public hearing before the Public Service
Commission, commencing on December 17, 1974, Thomas J. Stearns,
the Saint Paul City Public Utility Rate Expert, is authorized and
directed to present and explain the proposed city changes to the
rules, amendments and add�itions to existing rules of the Minnesota
Public Service Commission, a copy of which changes are attached
hereto, and, in so making said presentation, is authorized to act
on behalf of the City of Saint Paul.
COUIVCILMEN
Yeas Nays Requested by Depactment of:
��� Christensen '�J
�4¢ad� Hozza / In Favor
Levine
�ne� Sylvester �_ Against By
� Roedler
Tedesco
Mme.President��' ��
DEC 12 1974 Form Appro e ity At rney
Adopted by Council: Date )
Certified P se y Counci cretary» BY ^
By
Approv by Maxor: ate Approved by Mayor for Submission to Council
By BY
PUBLISHED DEC 21 1g74
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The City of Saint Paul suggests that the rules and regulations
be changed to read as follows :
PSC 500. Definitions.
� � � " (f) 'Party` to a proceeding before the Com-
mission means a person by or against whom a pro-
ceeding is commenced; a municipality designated
as 'amicus curiae' to the proceedings by statute
. • which elects to assist the Public Service CQmmission
in the proceeding; a person admitted to intervene i.n
a proceeding pursuant to these rules; or, a person ' .
adm�tted pursuant to these rules as a protestant
in a motor carrier proceeding . . .
(Remainder of regulation as is) "
REr.SON: To the proposed detinition of "party", the City of
Saint Paui adds �he language: "a municipality
designated as ' amicus curiae' to the proceedings
by statute which elects to assist the Public Ser-- �
vice Commission in the proceeding" . This language
is adopted from Section 22 of the law governing
. public electric and gas utilities, and the City be- ,
lieves that any r.iunicipality fitting the description
should be admitted as a party upon its eZection tq
� assist the Public Service Commission.
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The City of Sai.nt Paul suggests that the rules and regulations
be changed to read as follows :
PSC 503. Parties ; Petition to Intervene;
Partzcipation and Appearance.
" (a) Complainants, petitioners and respondents
: - specifically named as such in any pleading, and
municipalities designated as ' amicus curiae' to
the proceedings by statute which elect to assist �
the Public Service Commission in the praceeding
are parties to the .proceeding . No other person .
shall become a party to the proceeding except by
leave of the commission upon petition to inter- -
_ vene under� PSC 506 (6) , and a showing that he is
. specifically deemed by statute to be interested i.n
the particular type of matter involved, o.r that he
is specifically declared by statu-t„� to be an in-
terested party to the particular type of proceeding
involved, or tha-� by the outcome of the proceedinq
he wi.11 be bound and affected either favorably or
adversely ���ith respect to an asserted interest pe-
culiar to the person as distinguishec3 from an in-
terest common to the- public or: othe��taxpayers in
general; such person shall be styled "intervenor. "
In addition, any person admitted, pursuant to these
rules, as a protestant in a motor carrier proceeding
. shall be considered a party to such proceeding and
shall be styled "protestant. "
REASON: The language of Secti.on 22 of the law governing . .
public electric and gas utilities is aqain inserted
in the por-�ion of the regulation pertinent to "par-
• ties. " The particulars of the law allow munici-
palities to elect to assist the Public Service Com-
mission, and since such communities then automatically
assume a capacity in the hearings thereafter, the
City of Saint Paul submits that they be received as :
"parties", much the same as intervenors who are so
accepted because af a showing of an interest in the
matter to the Public Service Commission.
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The City of Saint Paul suggests that the rules and regulations
be changed to read as follows ;
PSC 504. Participation by Department of Public
Service Staff.
. . "In any proceeding before the Commission, members
of the Department staff shall review the filings
submitted in conjunction therewith and shall parti-
cipate to evaluate, discover, present and challenge,
if necessary, facts and conclusions pertinent to '
the issues. At the direction of the Commission,
they may, also, proceed to examine, evaluate, and
report on further facts and conclusions in rele-
vant matters, as requested. Th e staff shall appear
in any proceeding before the Commission, and through
its witnesses present testimony, documents, and
evidence as to the results of its evaluation and
discovery of the facts and conclusions examined,
including a report on its accounting, eng ineering,
and economic investigation, factual ascertainments, �
field studies, inspections, enforcement activities,
and other technical investigations and studies.
: The staff, in any proceeding before the Commission
may make statements or recommendations on the re-
cord, cross-examine witnesses, or file briefs based
upon the evidence presented. However, the staff
shall not be considered a party nor shall it assume
an adversary position in any commission proceedings.
REASON: Since the Public Service Commission of the State
of Minnesota is now replacing lower governmental
subdivisions in the investigation of any applica- :
tion for an increase in rates by the public utility
companies, it would appear that the Public Service
Commission should assume a position of having a
thorough independent examination of the application
made as a matter of procedure by its staff. The
municipalities concerned no longer have funds
� available to employ qualified personnel to review
such filings, so the members of the department
staff should replace them to the fullest extent
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as to the evaluation, discoverl, presentation and
challenge of both f_acts and conclusions subm itted
to the Commission for action by it. The City of
Saint Paul recog�izes that besides the normal ex-
� amination, the Comrnission may desire to have parti-
cular studies made on parts � and portions of the
substantiating documents, and so the City includes
that type of prerogative in the chang� submitted.
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The City of_ Saint Paul suggests that the rules anc� regulations
bc change3 to read as folZows .
PSC 5�6. Pleadings .
�� (2) (bb) Allegations ; Joinder of Causes. Formal
� complaints should be dra�an so as to fully and com-
pletely advise the parties respondent and the com-
mission wherein the provisions of th� statutes of
the State of Minnesota authorize such complaint
under conditions so prescribed, or wherein the pro-
visions of the statutes, or the rules and regul'a--
' � tions of the commissian, have been, or are, violated
by acts or omissions complained of, or will be vio-
lated by a continuance of such acts or omissions,
and should further set feat�o beethe basisnforathe
language the facts claim
complaint in accordance with the statutory condi-
tions so prescribed, or the . facts claimed to con-
stii:ute a violation of the statutes or rules and
reyulations, and the relief sought. �� . .
(Remainder to be tY?e same) :
R G'150N: The present law per�aining to the rea,ulation of
electr?c and gas pu b li c u tilities provides in
- Section 17 that a governing body of any political
subdivision, another public utility, or fifty
consumers may submit a complaint to the effect
that the Schedules and rates are unreasonable
and unjustly discriminatory. The City of Saint
Paul submits that the above change would take into
� account the authorization oi a complaint upon those
grounds as well as violations of the law or omis-
sions being questioned.
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Tne City of Saint Paul suggests that the rules and regulations
be changed to read as follows :
PSC 506. Pleadinqs.
"2 . Formal Complaint.
(cc) Tariff and Schedule Reference.. Com- -
. plaints regarding rates, tolls, tariffs,
fares, charges, or schedules, or any joint
rates, or any rules, regulations, measure-
ments, or practices should be specific �
with reference to the tariff or schedule
on file with the Minnesota Public Service �
Commission whenever practicable. " .
REASG�v': The City of Saint Paul submits the above change
for consideration since it incorporates the lan- .
. guage of Section 17 regarding complaints undei
the law regulating public electric and gas utilities.
To the present proposed regulation it adds tolls, .
tariffs, schedules, joint rates and measurements.
Also, since the new statut� requires a filing of �
a schedule with the Minnesota Public Service Com-
mission, the City has added that to the porti.on
of law providing a reference to such which is on �
file.
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of Saint Paul suggests that the rules and regulations +
The City _ .
be changed to read as follows : �
PSC 51.1. Hearin .
Each formal hearing
�� �b) presiding Officer (s) • resided over by
before the Commission shall be P
one or more commissioners, or up°nated hearing of
the parties, by one or more deszg
ualified commission employecs, or
examiners, q erson or persons
� members of the Sb��knowndasathe presiding of.fic'er
presiding shall
or officers . . • • ,,
(Remainder the same)
RFASON: The City
of Saint Pau1 has adopted part of the
language included in Section 15 of the law
ublic electric and gas utilities.
governing p the delegation of
There, the language admitti.nq
authority to a qualified employee �a tiesthave
delegation to instances where the p
stipulated upon the appointment. Although other .
laws are concerned, the City believesrtha1ation
limitation should be repeated in �� �
to the extent established by its proposal.
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The City of Saint Paul suggests that the rules and regulations
be changed to read as follows :
PSC 511. Hearin�,
�� (i) Admission of Evidence. In a contested case,
. the presiding officer or officers by majority vote
may admit and give probative effect to evidence
- which possesses probative value commonl�r accepted
by reasonably prudent men in the conduct of their
affairs. It shall give effect to rules of privilege .
recognized by la`,,�. rt may exclude incompete�t,
irrelevant, immaterial and repetitious evidence.
Evidence that is offered by the public utility .
which is inconsi.stent with the filed statements
of facts, expzrt opinions, substantiating documents,
� and exhibits or which calls for an increase or sub-
stantial change in the filed rate sc�edules shall
not be received except upon express stipulation
� of the par-ties and �vith no-tice to the municipali-
ties in the utility' s service area and an oppor--
tunity on their part to intervene in the hearing. ��
R�SQN= The City suggests that the rule acknowledge the
possibility of havi.ng more than one presiding �
officer selected for the hearing under PSC 511 (b) .
Further, in view of the statute requiring sul�stan-
tiating documents to be filed at the inception of
the case, the City believes that testimony Contlict-
in wi
9 th such documents is not consistent with the
purport of the law. If, of course, there is na
effect on the rate schedules submztted or the parties �
stipulate to the change, the "updating" might be
considered.
Also, it should be kept in mind that there is a nine
month limitati.on on the "final determination", so the -
procedure of altering the case at t��e last minute f
under the guise of rebuttal t�stimany can only serve
to prejudice the adverse parties who are not prepared •
for such changes, and such testimony should not be �
allowed over their objections ex�ept as a new filing.
Adequate notice should be given to the same munici-
palities who received a chance to review the origi.nal
. documents and rate schedules.
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The City of Saint Paul suggests that the rules and regulations
be changed to r ead as follo�.as : � -
PSC 511. Hearin . ,
�� (j) Documentary Evidence. In a contested case, �
docLUnentary evidence that is .deemed admissible
may be received in the reference�Psosi ng�asethes�
or by incorporation by
� original documents are made reasonably available
� by the offering party to the other partiES to the
hearing and so long as suitable foundation is
laid to the admission of£s�YC�ndo���htof the re
docu�'�ents are submitted arties should be g iven
matter contained therein, p
the right to cross-examine the originator of the
document. "
REASON• The City of Saint Paul has ao hmentary evidencen
of the proposed rule as to
to allow parties adversely affected by such an
opportunity to examine the original document and .
to have the document supported by foundation �ahen
submitted. Also, there should be retained the
right to cross-examine the originator of the
document if its content is going to be accepted
� as true.
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The City of Saint Paul suggests that the rules and regulations
be changed to read as follows : � •
PSC 511. Hearin . �
" (k) Evidence Must Be Offered. Al1 evidence in
a contested case, including records and documents
� in the possession of the corn.'nission of which it
desires to avail itaelf, shall be offered and,
subject to the rights of the parties as to ob- ,
jections, if received, shall be made a part of
� the record in the case, andheo offeredaoruother-
formation or evidence, whe
wise, shall be considered in the determination
of the case. "
The City of 5aint Paul has reworded the proposed
REASON: rotect the rights of a party
regulation again to p
adversely affected and require th� lam itation of
tacts and conclusions to those directly submitted
and received in the case.
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The City of Saint Paul suggests that the rules and regulations
be changed to read as follows :
PSC 511. Hearings.
. " (1) Official Notice. In a contested case, the
commission may take notice of judicially cogniz-
able facts as contemplated to the extent pro-
vided by Minn. Stat. � 599.01 et sequa, including
those adopted by the judiciary of the State of •
Minnesota with respect to laws, statutes, or- � �
dinances, facts of common knowledge, and of a
technical and scientific nature, health, habits,
dates, customs, and other matters as received by
the courts. Parties shall be notified in writing
either before or during hearing, or by reference
in prelim inary reports or otherwise, or by oral
statement in the record, of the material so
noticed, and they shall be afforded opportunity
to contest the facts so noticed. " �
REASON: The acceptance of facts of common knowledge in
judicial proceedings would seem to cover the
common observation as well as the scientific
and technical areas. The City of Saint Paul
has merely rephrased the regulation to make it
concern itself with facts rather than views.
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The City of Saint Paul suggests that the rules and requlations
be changed to read as followsc
PSC 512 . Hearing, Notice.
" (c) When a utility has filed proposed changes
in its rates or has requested new rates and
charges, together with statements of facts, ex-
pert opinions, substantiatinq documents and
. � exhibits, supporting the change requested, the
commission shall, pursuant to statute, give
notice to the governing bodies of each muniei.- ' :
pality or county in the area affected by such .
proposed changes . The notice shall include the
location of the main office of the utility where
copies of the filings oi statements of facts,
expert opinions, substantiating documents and
exhibits may be examined and copied. In addition,
when determined by the commission to be appro-
priate, the utility proposing a c�ange in rates .
shall notify indi�ridually its subscribers of
the propos�d change by billing stuffer or other
, appropriate method. "
REASON: The present law under Section 16 requires� a filing
of statements of facts, expert opinions, sub-
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stantiating documents and exYiibifs to be made
coincident with the filing of rate changes. The
: reason for the requirement is that it provide a
disclosure to the commission and governing bodies
of just what the utility claims its basis for a
rate increase is. As soon as possible after the _
filing, the City submits that similar documents
should be made available for copy at the main
, office of the utility concerned. The noti.ce can
serve as a practical manner of advising the affec�ed
� communities of the contended basis for the rate �
increase.
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The City of Saint Pau1 suggests that the rules and regulations
be cnanged to read as follows :
PSC 512 . Hearinq, Notice.
� " (e) In addition to the notice required in
paragraph (d) above, the petitioning utility
company shall, at least ten (10) days prior
to the scheduled hearing, mail a copy of the
notice of hearing to the governing bodies o= .• ' .
all cities within its service area as well as
to all parties who have appeared in the t��o
most recent rate proceedings of the petitianar
and whose names appear as sucn in comr►ission
files. Such notice shall indicate the place
of the hearing, the date of corr�rnencem�nt and
include a summary sheet describing the per-
centage impact of the prolnosed rate changes
upon revenues by tne various classes of service
offered by the petitioner, and shall include
a list oi the petitioner' s business office loca-
tions where the proposed rate schedules, a com-
parison of present and proposed rates, and a
set of the filed statements of facts, expert
opinions, su:ps�antiating documents and exliib its
. can be examined and copied. Copies may be made
by or supplied to interested persons at a rea-
sonable cost to them. Proof of service of the
notice is to be filed at or before the scneduled
initial hearing. "
Rr,ASON: The proposed rule has been expanded by the City �
of Sai.nt Paul � to give effect to PSC 512 (f) in
a practical way. Since the filed matter in a
_ rate hearing is so bulky, the City suqgests that
persons, cities, residents should have an oppor-
tunity to make copies of them for tn.eir own use.
Inspection alone is not enough.
The City of Saint Paul suggests that the. rules and regulations
be changed to read as follows :
PSC 512. Hearing, Notice.
" (f) The petitioning utility shall, at least
ten (10) days prior to the hearing, have avail-
able for inspection and copy at its grincipal
business office and such other business offices
of the pe-titioner as the commission shall di-� � .
rect, statements of fact, expert opinions,
substan�iating documents, and exhibits support-
ing the change requested, and further, shall '
state the change proposed to be made i.n the
rates then in force and the time when the modi-
fied rates will go into effect. Any copies ta �
be made �aill be at a reasonable cost to the
person requesting the same. °
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RE�SON: The City of Saint Paul submits again that mere
inspection of the supporting material may not
be sufficient and anyone really interested in .
what has been filed should be given an oppor-
tunity to make copies ,of the same sa long as he
defrays the cosfi.. �-...__..,._,-r�-�:�,�
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' s:�e City of S�int Paul sugqests that the rules and regula�tions
be chang�d to read as follows :
PSC 512 . Hearing, Notice.
" (g) Statements of facts, exp�rt opinions, sub-
stantiating documents and exhibits shall contain
all the inforr,tation necessary for supporting the
. changes in the rate scheduJ_es filed by the public
utility. If at any tirle afzer the filing there
is a request by the utility to amend, alter,
change or revise any of the docurlents filed, such
changes shall only be made upon stipulation of the
' parties to the hearing and by a showing that there
will be no increase in the rates specified in •
the rate schedules. Changes that result in in-
creas�s in the rate schedules shall be retained
by the Minnesota Public Service Co��-n.issi_on upon
request of the public utility concerried as matter
to be considered in conjunction with any subsequent
rate filing by the utility. "
P,E�SON: The Minnesota 1aw governing public electric and .
gas utilities has specified both that a ra-ce
� schedule musz be iiled �ei�h the t�Iinr_esota Public
Service Comnission and that substantiating docu-
ments and other data should be afforded to all
. the rnunicipalities involved i.n the rate hearing
before the tiane that the hearing commences. Tf
the utility �vishes to alter the filing to a sub-
stantizl degree to the de�triment of any one who
may be concerned with the rates, an opportunity
should be provided to the municipalities, the resi-
dents, and other affected parties or intervenors, �
to study the substantiating documents in order to
present a fair appraisal oF the request of the
• utility. zn vieca of the fact that there is only
a nine month period for the consuners to contest
, adverse changes, information ob�ained subsec�uent
to the original hearing should be retained and
presented in conjunction �vith a later filing of �
the utility.
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The City of Saint Paul suggests that the rules and regulations
L,e changed to read as follows : _
PSC 513. Prehearing Conferences; Settlement
Conferences; and Stipulations.
" (b) (6 z) The necessity for taking .depositions af
witnesses, whose stat�rnents or affidavits are to
be submitted without direct testimony on their
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part. �� : .
REASON: The City of �aint Paul submits that depositions
play an important part in providing due process to
the parties in the event that statements or aff i-
davits are offer_ed in �ieu of testimony of wit-
nesses . 5ince it has proposed a change in the
regulations allowing for tne taking of depositions,
it believes that the matter should_ be discussed,
and if possible, disposed of at tYie' prehearing
conferences.
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Tne City of Saint Paul suggests that the rules and regula�ions
be changed to read as follows .
P5C 5142. Depositions .
" (a)� V�Then depasitions may be taken_ �9ith the
approval of the hearing officer or commission,
any par-cy may take the depasition of any person, .
including the experts of the adverse parties
for the purpose of discovery or for use as �vi-� .
dence in the case befo-re the commission or its
hearing officer. If the approval is not given
by the commission or the hearing officer, any
statements, affidavits or documents reci-�ing
facts, conclusions or opinions of the person de-
sired to be d�posed, shali not be retained or
accepted in evidence in any matter pending be-
fore the commission unless that person is made
available to testify and/or be cross-examined. "
" (b) Use of Depositions. The parties to a con-
tested case may us� depositions to the same extent
as authorized by the Minnesota Rules of Civil pro-
cedure for the District Courts, and in addztion
thereto, in any instan�es'�ri�r"�`'s'�'�'ements, affi-
davits or documents purporting to represen-t the
expressions of fact, conclusions and opinions of
individuals are received as substantive evidence.
by the cc�mmission. "
REASON: The City of Saint Paul submits that in view of the
possibility of statzments, affidavits and docu,-nents
being adopted as evidence in a proceeding before
� the Niinnesota Public Service Commissi.on, that the
rights of the parties should be protected to the.
extent of allowing them to take a dzposition of
any originator of the evidence so cross-e�amina-
ti.on can be conducted in such a r�lanner o The depo-
sition would be at the appraval of the commission �
and be used where the witness does not personally
appear or make himself available.
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