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204168Qrlainal to City Clerk' PRESENTED BY14 ORDIN Council File No. 204168— Ordinance No. 12078 7-By Mrs. Donald M. DeCourev- An ordlnpee emending Ordinance No. 11760, approved June 21, 1960, entitled: .'An ordinance granting to the North- ern States Power Company, a corpora- tion organized under the laws of the State of Minnesota, its successors and assigns Permission to use the Pets AN AN ORDINANCE AMENDING ORDINANCE NO. 11760, APPROVED JUNE 21, 1960, ENTITLED: 204.68 "AN ORDINANCE GRANTING TO THE NORTHERN STATES POWER COMPANY, A CORPORATION ORGANIZED UNDER THE LAWS OF THE STATE OF MINNESOTA, ITS SUCCESSORS AND ASSIGNS, PERMISSION TO USE THE STREETS AND OTHER PUBLIC PROPERTY LOCATED IN THE CITY OF SAINT PAUL FOR THE PURPOSE OF CONVEYING AND SUPPLYING STEAM FOR ALL PURPOSES FOR A TERM OF TEN (10) YEARS FROM AND AFTER JANUARY 1, 1961, PRESCRIBING RATES WHICH THE GRANTEE MAY CHARGE FOR SUCH SERVICE, AND DETERMINING THE AMOUNT WHICH THE GRANTEE SHALL PAY TO THE CITY FOR THE USE AND OCCUPANCY OF ITS STREETS AND OTHER PUBLIC PROPERTY." THIS IS AN EMERGENCY ORDINANCE RENDERED NECESSARY FOR THE PRESERVATION OF THE PUBLIC PEACE, HEALTH AND SAFETY. WHEREAS, Northern States Power Company, a corporation organized under the laws of the State of Minnesota, being a public service corporation supplying steam public utility service within the City of Saint Pauliunder Ordinance No. 11760, approved June 21, 1960, and the Grantee of a permit thereunder to use the streets-and other public property located in said City for said purpose for a period of ten years from and after January 1 1961, on August 22, 1961, pursuant to the provisions of Section 4 of said Ordinance, filed its Petition addressed to the Council of said City for said Council's review of such operations of said Northern States Power Company under said permit, for said Council's prescription, by ordinance, within 60 days after the filing of said Petition, of reasonable rates whic4•said Northern States Power Company may charge for such public utility steam service within said City.as shall be thereafter furnished by said Company thereunder; and WHEREAS, pursuant to said Petition of said Northern States Power Company and pursuant to the provisions of said Ordinance No. 1 11760, said Council has duly reviewed said operations of said Company under said permit and has conducted a public hearing on said Petition after having given 10 day's published notice of the same, has heard all parties concerned in connection with said Petition, and has conducted its necessary investigation in the premises; and WHEREAS, among other things,.in connection with said review of said operations of said 'Northern States Power Company, said Company has represented And,,it has been otherwise made demonstrable that the existing steam heating boiler plant representative of the steam production facilities of said Northern States Power Company, for the Yeas Councilmen Nays DeCourcy Holland Loss Mortinson Peterson Rosen Mr. President (Vavoulis) City Clerk M 6 -GO 8 Passed by the Council In. Favor Against I } /to City Clerk ORDINANCE 204168 COUNCIL FILE NO. PRESENTED BY ORDINANCE NO. ` /o 3 Note 1 - The specified discount of 2% on five year contracts now in effect will continue on each contract for the remainder of its present term. Note 2 - The fuel clause shall be inoperative until October 1, 1962, and thereafter until presently proposed new steam heating boiler plant has been installed and placed in service by the Grantee." Sec. 2. The Grantee shall, within 10 days after the passage, approval and publication of this.ordinance, file with the City Clerk of said City its written acceptance thereof in form to be approved by the Corporation Counsel and therein shall agree to abide by, keep And perform all the,? terms, limitations, conditions and provisions of this ordinance. Sec. 3. This ordinance shall take effect and be in force upon its passage, approval and publication ,,, and acceptance as provided in Section 2. Sec. 4. This is an emergency ordinance rendered necessary for the preservation of the public peace, health and safety. m OCT 181 Yeas Councilmen Nays Passed by the C uncil DeCourcy , HeH=d-- Loss n Favor Mortinson Peterson R - Against Rosen -OCT 18 Mr. President (Vavoulis) Approve AtteSeZ City Clerk Mayor lilt 6 -60 s P G J I I FA 2�4a.sa / -�". � f aforesaid purposes, by reason of obsolescence, deterioration and disrepair is substantially, in its entirety, required to be retired and replaced by a new steam boiler heating plant which said Northern States Power Company proposes to install and put in service; and that by reason of such existing conditions of obsolescense, deterioration and disrepair connected with said existing steam production facilities of Northern States Power Company, it appears that'it would be imprudent for said Company to attempt to rehabilitate the same and that such replacement of the same in the near - future will be necessary to supplying, by said Company, of adequate steam service under sati permit THE COUNCIL OF THE CITY OF SAINT PAUL DOES ORDAIN: Section 1. That said Ordinance No. 11760, approved June 21, 1960, shall be and the same hereby is amended in the following particulars to -wit: that the first sentence of Section 4 of said Ordinance reading as follows: "During the period of this permit, all of the rate schedules for the sale of steam of the Grantee in force on the last day of December 1960 and on file in the office of the Commissioner of Public Utilities, shall remain in effect and continue in force until changed as herein and in Section 5 provided." hereby is strl�ken therefrom and that in place and stead of said stricken sentence.the foll�owing provisions hereby are inserted -in said Section 4 of said Ordinance: "During the period of this permit, commencing October 21, 1961,.the following rate schedule for the sale of steam by the 'Grantee hereby is prescribed and shall remain in effect and continue in force until changed as herein and in Section 5 provided: SCHEDULE OF PRESCB TES FOR STEAM SERVICE AVAILABILITY Available to commercial and industrial customers for general use of steam service. 'Steam service furnished-from low pressure mains is available from September 1 to May 31, inclusive; and steam service furnished from high pressure mains is available the entire year. RATE Firsf 200 000 lbs. of condensate per month @ $1.77 per 1000 lbs. Next 300 000 " It 11 it It @ 1.64 " " " Next 500 000 " " " " " @ 1.44 Next 2 000 000 " " " " " @ 1:23 Excess " " " " " @ l 16 PROMPT PAYMENT PROVISION A charge of 5% will be added to net bill, computed at _ the rate schedule shown above, which charge shall constitutea� discount from the gross bill for payment within the 'd is-count period. , MONTHLY MINIMUM CHARGE $7.00 net per meter. FUEL CLAUSE There shall be added to or deducted from the net monthly bill computed according to the above schedule $.018 per thousand pounds of steam for each whole cent by which the cost of fuel is more or less, respectively, than $.30 per million Btu. The cost of fuel shall be the average cost of fuel used during the preceding twelve months by the Steam Production plants of Northern States Power Company supplying steamto its St. Paul distribution system and shall include purchase cost,-freight, demurrage, weighing or measuring, unloading, testing, rehandling in storage, and delivery into said steam plants. NSP NORTHERN STATES POWER COMPANY ST. PAUL 2 MINNESOTA October 23, 1961 OFFICE OF VICE PRESIDENT AND MANAGER To the Honorable, the City Council Saint Paul, Minnesota Gentlemen and Comr. DeCourcy: The - undersigned, Northern States Power Company, does hereby accept and agree to abide by, keep and perform all the terms, limitations, conditions and provisions of Council File No. 204168, being Ordinance No. 12078, adopted by the. Council on October 18, 1961. t i FILED t 961 OCT 23 AH IU s2 CITY CLERK'S SAINT PAUL, MINN,; r M i i NOR RN STATES POWER COMPANY BY ` . 9-1,v ice. Presi ent an Manager BUREAU -OF WATER 4 CITY LEONARcr N• THOMPSON. ..... GENERAL MANAGER „ CLIFFORD W. HAMBLIN. �'•' DEPARTh _�--_ A.EIITAjNr #T{y�GENERAL MANAGi<R I 1111111 � x.e SAINT PAVt =.� C 9 � BBUREAI �OF INVESTIGATION i�EDV01W�! . JONES, UTILITIEI< ENGINEER al of, Minnesota st 71 w _ B« V A iUORE{AU ' OF LIGHTING _OEPUBLICU 'N W j H � WARD-LOWE, SUPE` R 11 NTENDENT i + Court, House . ; µ _ -" = _ S' ' ` , r - - / wBUREAU OF,MARKETS IC.; BUREAU OF, MUNICIPAL TESTING' 4 r A Ii., HOGAN. DIRECTOR �. "LABORATORIES -�.-1 °"- MRS. DONALD M. DeCOURC_Y;'" �a�,�q, b ifigno RALPH H: ROCKWOOD,.DiREcToR. �s �' Commissioner of Public Utilities) �� 1;1;d (ACCOUNTANT a"-� �zifl +�' r_.' J._L CONNOLL'Y ` r' �6 A y. c� 3, •�#,+� T t �a -0: �. ., an# ii11 t 9 i'i ��r CA�1rAL 4 -46.12 � r7{ siddeent - Boa (= w8ter�CoIRIRls9ionera ' ..........� . -. ., THEUDORE A. LOVEL'AND' ,.._ 1 - _DePnty Commfzh0n_er o! "Public U_N_ i ties j October 3, 1961 0—f To the Honorable Council of the City of Saint Paul: Re: Petition by Northern States Power Company for prescription by Council of reasonable steam service rates applicable to public utility steam service by said Company in the City of Saint Paul, filed August 22, 1961 The undersigned Public Utilities Committee, pursuant to your`diiection, has made due investigation of the subject of said petition and in such connection has employed the ser- vices of Black and Veatch Engineering Company of Kansas City, Missouri. Said Company sought an elevation of existing steam service rates applicable to its aforesaid operations by 74 per cent. This Committee's investigation disclosed that the existing steam production facilities of said Company for its rendition of such steam service, by reason of obsolescence, deterioration and disrepair, in their sub- stantial entirety, must be the subject of replacement, since it would be imprudent to attempt to rehabilitate the same by repairs. Said Company has represented that it presently plans to replace the same by the installation and placement in service of a new steam heating boiler plant within the next twelve to eighteen months' period. The prescription of rates must be predicated upon existing as distinguished from prospective conditions appertaining to said Company and its steam production plant. This Committee, based upon its said investigation and extra negotiations with represen- tatives of said--Company recommends the following schedule of public utility steam service rates for prescription in this case at this time by your honorable body, the same being representative of merely an approximate 35 per cent increase of the existing rates: Council 2. October 3, 1961 SCHEDULE OF RATES FOR STEAM SERVICE AVAILABILITY Available to commercial and industrial customers for general use of steam service. Steam service furnished from low pressure mains is available from September 1 to May 31, inclusive; and steam service furnished from high pressure mains is available the entire year. � z First 200,000 lbs. of condensate per month @ $1.77 per 1000 lbs. Next 300,000 " " It it if @ $1.64 " If If Next 500,000 " " If if " @ $1.44 " " " Next 2,000,000 " " If if It @ $1.23 " it it Excess " " " if it @ $1.16 " If If PROMPT PAYMENT PROVISION A charge of 5% will be added to net bill, computed at the rate schedule shown above, which charge shall constitute a discount from the gross bill for payment within the discount period. MONTHLY MINIMUM CHARGE $17.00 net per meter. FUEL CLAUSE There shall be added to or deducted from the net monthly i computed according to the above schedule $:.018 per thousand pounds of steam for each whole cent by which the cost of fuel is more or less, respectively, than $.30 per million Btu. The cost of fuel shall be the average cost of fuel used during the preceding twelve months by the Steam Production plants of Northern States Power Company supplying steam to its St. Paul distribution system and shall include purchase cost, freight, demurrage, weighing or measuring, unloading, testing, rehandling in storage, and delivery into said steam plants. Note 1 - The specified discount of effect will continue on each its present term. 2% on five year contracts now in contract for the remainder of Note 2 - The fuel clause shall be inoperative until October 1, 1962, and thereafter until presently proposed new Steam Heating Boiler» Plant has been installed and placed in service by the Grantee. 9 Council 2. October 3, 1961 CoXmissioner of Public Uti itie Ilk Comffissioner of Public Works ommis Woge P s nd Re �a/nd Publilt Buildings ector of Law for Corporation Counsel 4 Northern States Power Company (Minnesota) St. Paul Steam Utility INCOME STATEMENTS Calendar Year 1960 and Test Year 1960 (1) Based on a full year's effect of the adaptation of the steam production facilities at the Third Street and Hill Street Stations for use exclusively by the Steam Department and to annualize the effect of the September 1, 1960 wage increase. ( ) Indicates loss. 1 196o 196o Actual, Adjusted (1) Operating revenues 464 414 $464 414 Operating revenue deductions: Production expenses 348 793 522 345 Other operating expenses 70 6.00 72 662 Taxes: Gross earnings 23 213 23 213 Income 0 0 Other 52 468 66 955 Provision for depreciation 36 398 47 767 Total operating revenue deductions 531 432 332 942 Net operating income (67 0 8) (268 528) (1) Based on a full year's effect of the adaptation of the steam production facilities at the Third Street and Hill Street Stations for use exclusively by the Steam Department and to annualize the effect of the September 1, 1960 wage increase. ( ) Indicates loss. 1 ra Northern States Power Company (Minnesota) St. Paul Steam Utility PROPOSED RATE FOR STEAM SERVICE AVAILABILITY Available to-commercial and industrial customers for general use of steam service. Steam service furnished from low pressure mains is available from September 1 to May 31, inclusive; and steam service furnished from high pressure mains is available the entire year. RATE First 200 000 lbs. of condensate per month ® $2.25 per 1000 lbs. Next 300 000 n it it n it @ .2. 10 of to If Next 500 000 n n it n n @ 1.80 n n n Next 2 000 000 n u n n n ® 1.60 n u n Excess ®' 1-50 PROMPT PAYMENT PROVISION A charge of 5% will be added to net bill, computed at the rate schedule shown above, which-charge shall constitute a discount from the gross bill for payment within the discount period. MONTHLY MINIMUM CHARGE $10.00 net per meter. FUEL CLAUSE There shall be added to or deducted from the net monthly bill computed according to the above schedule $.018 per thousand pounds of steam for each whole cent by which the cost of fuel is more or less, respectively, than $.30 per million Btu. The cost of fuel shall be the average cost of fuel used during the preceding twelve months by the Steam Production plante.of Northern States Power Company supplying steam to its St. Paul distribution system and shall include purchase cost, freight, demurrage, weighing or measuring, unloading, testing, rehandling in storage, and delivery into said steam plants. Note 1 - The specified discount of 2% on .five year-contracts now in effect will continue on each contract for the remainder of its present term. Note 2 The fuel clause shall be inoperative until October 1, 1962. K 3 Northern States Power Company (Minnesota) St. Paul Steam Utility SUMMARY OF PRESENT AND PROPOSED STEAM RATES Rate (net) Low pressure: Sept . ' - May 200 M lb s . 300 500 2 000 Excess June - Aug. Rates shown above plus High pressure: Sept. - May June - Aug. Five -year term discount Monthly minimum charge Fuel clause - Base cost of fuel Adjustment Present Rates Base Rate Base Plus Fuel Proposed Rate Adjustment (1) Rate Q $1 -oo $1.314 $ 2.25 .90 1.214 2.10 .75 1.064 1.80 .6o .914 1.6o Q .55 .864 1.50 .20 .20 0 Low pressure Same as low rates plus $.20 pressure per M lbs. rates Same as low Same as low pressure rates pressure rates 2% 0 (2) $5.00 net $ 10.00 net $.22 per 106 Btu $ -30 per 106 Btu (3) 1.6¢ per M lbs. 1.8¢ per M lbs. per whole cent per whole cent variation from variation from base base (1) The adjustment added is 31.4¢ which was the average fuel adjustment per 1000 pounds condensate experienced-during 1960. (2) The specified discount of 2% on five -year contracts now in effect will continue on each contract for the remainder of its present term. (3) The fuel clause shall be inoperative until October 1, 1962. T 4 4 Northern States Power Company (Minnesota) St. Paul Steam Utility COMPARISON OF NET MOMMY BILLS PRESENT AND PROPOSED RATES 1000 Pounds Per Month 10 15 20 25 50 100 200 300 400 500 1000 3000 5000 Net Monthly Bill Present Proposed Rate 1 Rate (21 Increase $ 6.57 $ 11.25 $ 4.68 13.14 22.50 9.36 19.71 33.75 14.04 26.28 45.00 18.72 32.85 56.25 23.40 65.70 112.50 46.80 131.40 225.00 93.60 262.8o 450.00 187.20 384.20 66o.00 275.80 505.6o 870.00 364.4o 627.00 1 080.00 453.00 1 159.00 1 980.00 821.00 2 987.00 5 180.00 2 193.00 4 715.00 8 180.00 3 465.00 (1) These amounts include average fuel adjustment of 31.4¢ per 1000 pounds of condensate experienced in St. Paul in 1960. (2) These amounts assume a zero fuel adjustment. Northern States Power Company (Minnesota) St. Paul Steam Utility EFFECT OF PROPOSED RATE UPON REVENUES Based on data for the Year 1960 Estimated revenues under proposed rates Present revenue from sale of steam Estimated increase in revenue with proposed rates Additional gross earnings tax payable to St. Paul. because of increased revenue Additional revenue available to Company $ 808 079 464 174 343 905 17 195 $ 326 710 5 W m H m �1 Fes' YA H V F" C I � iv F I� cn- �p � O N W -n v N ell.. v T � ,mm W N m n 07 c+ m �o Pi N m c+ (�D rn Fj rn N a O\ W i a H uo t2: - c+ O ro Fa 0 mp m m (n N c- )I 0 m W 0 ro v V 1 v .N. u �O c+ cm+ cmF H p c+ ro H Fq pt Gd bd + ►i Fd by ►d O y� + ►i ((CDT °t, a (D C3 c�+ 9 FF'�� v w pE H N C N ct f0t Fj N (cD+ µ E ((DD O m•• cc+ y 0 0 a a F• a ((D� c+ a m m ro F' N w K k� W o c+ c�+ O O p (D O (n 0 �Nb W U� O N cF 0 pw Oq Imo'• 1p�� Fpm• O ki cc+ °GS O (D w CD O H H 0 m (D m � Oq Oa m Fj O I-b 0 m m F-' o �n ►i Fd° m ►d m cw H hj° m m 0 O O P, (D r3 Ft 'tea ►� P aNi PF m � cF c+ wb c+. 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H CA O c+ P) pp N �i ID --mil P \-ni � G N pR) 000$ �cco + -69- ro 2 ro O\ O�tttt W N I-�•� 0 0 -J \n 'id O 0 N O ° \000 cw+ (D CO p . , p� .f�-• •ffi1• Z 01O\W NN C']� \n \n \n r• ON \n O \n O y W OD O\ W P 7P' ffl- pb�d O\ \o f W \o \o \r8 N c+ \n r• ;n o\ a\ --4 w o 00000 (KD ro 0000 N LA.) Lk) f f• O O ) W W \0 �� W N N N O G O\ f \p N ^7 ro FU -eA- c-F pp N cF g` 0 F� v m 0 W t2: H 4 c+ � y Z c-F co F cF W ° lD (D m 0 ro F6 0 o r:4 p C] H �C 0 W H .. H CA O c+ P) Northern States Power Company (Minnesota) St. Paul Steam Utility INCOME STATEMENTS Calendar Year 1960 and Test Year 1960 s 196o Actual, Adjusted (1) Northern States Power Company (Minnesota) St. Paul Steam Utility INCOME STATEMENTS Calendar Year 1960 and Test Year 1960 (1) Based on a full year's effect of the'adaptation of the steam production facilities at the Third Street and Hill Street Stations for use exclusively by the Steam Department and to annualize the effect of the September 1, 1960 wage increase. ( ) Indicates loss. 1 1960 196o Actual, Adjusted (1) Operating revenues 464 414 $464 414 Operating revenue deductions: Production expenses 348 793 522 345 Other operating expenses 7o 600 72 662 Taxes: Gross earnings 23 213 23 213 Income 0 0 Other 52 468 66 955 Provision for depreciation 36 398 47 767 Total operating revenue deductions 531 47 732 942 Net operating income (67 0 8) 268 528 (1) Based on a full year's effect of the'adaptation of the steam production facilities at the Third Street and Hill Street Stations for use exclusively by the Steam Department and to annualize the effect of the September 1, 1960 wage increase. ( ) Indicates loss. 1 2 Northern States Power Company (Minnesota) St. Paul Steam Utility PROPOSED RATE FOR STEAM SERVICE AVAILABILITY Available to.commercial and industrial customers for general use of steam service. Steam service furnished from low pressure mains is available from September 1 to May 31, inclusive] and steam service furnished from high pressure mains is available the entire year. RATE First 200 000 lbs. of condensate per month @ $2.25 per 1000 lbs. Next 300 000 It 11 it it @ •2.10 ° to It Next 500 000 u It it of @ 1.80 n n n Next 2 000 000 " " of u n @ 1.60 n u u Excess W 1.50 n n n PROMPT PAYMENT PROVISION A charge of 5% will be added to net bill, computed at the rate schedule shown above, which - charge shall constitute a discount from the gross bill for payment within the discount period. MONTHLY MINIMUM CHARGE $10.00 net per meter. FUEL CLAUSE There shall be added to or deducted from the net monthly bill computed according to the above schedule $.018 per thousand pounds of steam for each whole cent by which the cost of fuel is more or less, respectively, than $.30 per million Btu. The cost of fuel shall be the average cost of fuel used during the preceding twelve months by the Steam Production plants -of Northern States Power Company supplying steam to its St. Paul distribution system and shall include purchase cost, freight, demurrage, weighing or measuring, unloading, testing, rehandling in storage, and delivery into said steam plants. Note 1 - The specified discount of 2% on .five year contracts now in effect will continue on each contract for the remainder of its present term. Note 2 - The fuel clause shall be inoperative until October 10 1962. 3 Northern States Power Company (Minnesota) St. Paul Steam Utility SUMMARY OF PRESENT AND PROPOSED STEAM RATES Rate ( net ) Low pressure: Sept. - May 200 M lb s . 300 " 500 2 000 " " Excess June - Aug. Rates shown above plus High pressure: Sept. - May June - Aug. Five -year term discount Monthly minimum charge Fuel clause - Base cost of fuel Adjustment Present Rates Base Rate Base Plus Fuel Proposed Rate Adjustment (1) Rate $1.00 $1.314 $ 2.25 @ .90 1.214 2.10 •75 1.064 1.80 e .6o .914 1.6o •55 .864 1.50 .20 .20 0 Low pressure Same as low rates plus $.20 pressure per M lbs. rates Same as low Same as low pressure rates pressure rates 2% 0 ( 2 ) $5.00 net $ 10.00 net $.22 per 106 Btu $.30 per 106 Btu (3) 1.6¢ per M lbs. 1.8¢ per M lbs. per whole cent per whole cent variation from variation from base base (1) The adjustment added is 31.4¢ which was the average fuel adjustment per 1000 pounds condensate experienced-during 1960. (2) The specified discount of 2% on five -year contracts now in effect will continue on each contract for the remainder of its present term. (3) The fuel clause shall be inoperative until October 1, 1962. 4 Northern States Power Company (Minnesota) St. Paul Steam Utility COMPARISON OF NET MOMMY BILLS PRESENT AND PROPOSED RATES 1000 Pounds Per Month 5 10 15 20 25 50 100 200 300 400 500 1000 3000 5000 Net Monthly Bill Present Proposed Rate 1 Rate 2 Increase $ 6.57 $ 11.25 $ 4.68 13.14 22.50 9.36 19.71 33.75 14.04 26.28 45.00 18.72 32.85 56.25 23.40 65.70 112.50 46.80 131.40 225.00 93.60 262.8o 450.00 187.20 384.20 66o.00 275.80 505.60 870.00 364.4o 627.00 1 080.00 453.00 1 159.00 1 980.00 821.00 2 987.00 5 180.00 2 193.00 4 715.00 8 180.00 3 465.00 (1) These amounts include average fuel adjustment of 31.4¢ per 1000 pounds of condensate experienced in St. Paul in 1960. (2) These amounts assume a zero fuel adjustment. Northern States Power Company (Minnesota) St. Paul Steam Utility EFFECT OF PROPOSED RATE UPON REVENUES Based on data for the Year 1960 Estimated revenues under proposed rates Present revenue from sale of steam Estimated increase in revenue with proposed rates Additional gross earnings tax payable to St. Paul because of increased revenue Additional revenue available to Company $ 808 079 464 174 343 905 17 195 $ 326 710 5 Rl r-i a Lr\ � ti o o o i ao g O [a N N N Ln crr�y{ N l-- N H O \O u1 41, �p td O iO3 U W rl r0-1 r-i rrii r0-I r-i c� 3 14 Ea �i bo -P-1 0 44-1 O ri r-i p k fn +� i UN .2p LA M M N p O N a � O Do ig�� N %o 0c) cm NNI— N pQo N ��r w �{! N fi �� Q M -H �O V O EO EO o 'dd A vowel Ui � to 4) N N \o L\ %,o N .O\ \.o 00 -d N W 0 L\ O VN O\ H ON 0 +P N 00 O O\ U1 M O �o r-i ri O a) 14 $4 UI v M O\ N O\ �o O\ UN �N H O 4-f +� 4i v Ea o C\j O [�- rl �o M N O +- ;J rd PI (1) N 4) N N rd N a� a � 4) a .. 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P4 A 0 wo 4; ;F4 P° O O 4-' d 'a $4 Pi cd O as U O w f • s K =� Northern Staters Power Company Ninnesota) St. Paul Steam Utility INCOME STATEKENT Pro Forma Year 1962' Operating revenues Operating revenue deductions: Production expenses Other operating expenses Taxes: Gross earrings Income Other Provision for depreciation Total operating revenue deductions Net operating income Net operating investment Net operating income in percent of net operating investment One full year with present facilities used exclusively for steam including the annualized effect of wage increases and the effect of the proposed rate for a full year. 803 852 528 731 75 413 40 185 16 573 66 955 ,47 767 775 624 28 228 5.79 Northern States Power Company (Minnesota) St. Paul Steam Utility NET OPERATING INVESTMENT Pro Forma Year Ended December 31, 1962* Plant in Service Production $ 1 273 132 Distribution 528 184 General 4 670 St. Paul Common Plant Allocated 2 760 General Office Facilities Allocated 1 1 Total 1 09 935 Less - Reserve for Depreciation 1 417 881 Net Plant in Service —3--- Add - Working Capital 96 543 Less - Contributions in Aid of Construction 1 229 Net Operating Investment 48L368 After installation of reducing valves converting present* facilities to exclusive use for the steam utility.. _5 b� v� NORTHERN LLJ r � STATES POWER ST PAUL 2 MINNESOTA August 22, 1961 OFFICE of VICE PREYIDENT AND MANAGER City Council of the City of Saint Paul, Saint Paul, Minnesota Gentlemen and Mrs. 17eCourcy: M a z CV N Cc4 M PLAN Y F— U) w° U The present effective rate schedule for the sale of steam in Saint Paul was initially established on September 1, 1941. Over the years increases in the cost of labor, materials and supplies, increases in taxes, and changes in operations, all of which are beyond Company's control, have resulted in the revenues under the present rates being inadequate to cover operating expenses. The substantial losses from steam operations in Saint Paul for the past several years now necessitate an increase in steam rates. Pursuant to Section 4 of Ordinance No. 11760, Northern States Power Company now petitions the City Council of the City of Saint Paul to review the steam operations of the Company and to prescribe within 60 days, as provided therein, reasonable rates which the Company may charge for steam. Attached hereto for your consideration is our proposed steam rate schedule which would increase Company's revenues about $344, 000 per year based on data for the calendar year 1960. iAM r � n City Council of the City of Saint Paul August 22, 1961 In prescribing reasonable steam rates, consideration also should be given to the new steam production facilities to be installed in the Third Street plant next year at an expenditure in excess of 2, 600, 000. The new facilities are being installed to assure the continuation of reliable steam service to the Saint Paul steam customers. The present steam production facilities in the Third Street plant are over 50 years old, having been installed during the period 1905 -1912. The Third Street plant is the principal source of steam for our Saint Paul operations. We will appreciate your early consideration of this petition. Res ectfully submitted, S J. F. Owens, Sr e President and Manager 7j j City of St. Paul :;gOPOSED RATE FOR STEAM SERVICE AVAILABILITY Available to commercial and industrial qustomers for general use of steam service. Steam service furnished from low pressure mains is available from September 1 to May 31, inclusive; and steam service furnished from high pressure mains is available the entire year. RATE First 200 000 lbs. of condensate per month ® $2.25 per 1000 lbs. Next 300 000 " ®'2.10 tt n n tt n ^ ® n tt Next 500 000 l,gp g 1.60 Next 2 000 000 n " n n n n n n n n n ® 1.50 tt n Excess PROMPT PAYMENT PROVISION A charge of 5% gill be added to net bill, computed at the rate schedule shown above, which charge shell constitute a discount from the gross bill for payment within the discount period. MONTHLY MTNIKUM CHARGE $10.00 net per meter. FUEL CLAUSE There shall be added to or deducted from the net monthly bill computed according to the above schedule $.018 per thousand pounds of steam for each whole cent by which the cost of fuel is more or less, respectively, than $.30 per million Btu. The cost of fuel shall be the average cost of fuel used during the preceding twelve months by the Steam Production. plants of Northern States Power Company supplying steam to its St. Paul distribution system and s ���' terchase cost.�ndl!.no freight, demurrage, weighing or measuring, in storagep apd delivery into said steam plants. 2 p contracts now in effect g Note 1 The specified discount of �i on five year will continua on each contract for the remainder of its present 4 term. 'Note 2 - The fuel clause shall be inoperative until October 1, 1962- 4 i i Fj S l ��i ��6 �- ��6� ' 1 2n Laid over to 3rd and app 4Adopted — o Yeas Nays Teas Nays DeCourcy �eCourcy - HFlat --' \�Hvliand Loss oss Mortinson 0 ortinson Peterson �eterson Rasure-- Rosen } Mr. President Vavoulis 8 'W"'4168 t tC