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W I . <br />ORONO REGULAR COUNCIL MEETING HELD JUNE 11, 1990 <br />NSP FRANCHISE AGREEMENT CONTINUED <br />length of the franchise with Mr. Peterson, and they were unable <br />to identify a legal reason why the franchise could not be less <br />than 20 years. Barrett stated Mr. Peterson did inform him that <br />there would be a policy conflict if they were to allow the length <br />of the franchise to be less than 20 years. <br />Mayor Grabek asked Mr. Peterson what policy he is referring <br />to. <br />Mr. Peterson replied that NSP met with the Suburban Rate <br />Authority and they recommended that the length of the franchise <br />be 20 years. Mr. Peterson said that NSP recently discussed the <br />franchise with one of Orono's City Attorney's who recommended <br />that a 20 year franchise be approved. Mr. Peterson said that is <br />what NSP agreed to and as a result, portions of the agreement <br />were revised to coincide with her recommendation. However, we <br />could not change the 20 years length of the franchise. That is a <br />standard agreement that we have with all other cities in our <br />jurisdiction. <br />Mayor Grabek asked Mr. Peterson when the boundary lines were <br />drawn depicting NSP territory from Wright /Hennepin's area. <br />Mr. Peterson said that the first map was prepared in 1954, <br />followed by a map in 1974. He said that NSP has filed a more <br />recent map in the early 1983. • <br />Mayor Grabek asked what the rate difference is between NSP <br />and Wright /Hennepin. <br />Mr. Peterson estimated that NSP' is charging $0.06 /kilowatt <br />hour and Wright /Hennepin is charging $0.08 /kilowatt hour. <br />Mayor Grabek asked the representatives of Wright /Hennepin if <br />that is correct, and if so, why there is such a difference. <br />Grabek noted that he resides within Wright /Hennepin territory and <br />became aware of the higher rates for Wright /Hennepin in <br />comparison to NSP. He said that other citizens have asked him <br />why there is such a difference. <br />One of the Wright /Hennepin representatives replied that they <br />serve mainly rural areas which require a greater amount of line <br />per customer. He said that by using off -peak incentives, the <br />cost of Wright /Hennepin service is competitive with NSP. <br />Mayor Grabek asked if such incentives were available to <br />Orono residents. <br />The Wright /Hennepin representative replied that off -peak <br />power may be purchased by consumers for 3.4(�/kilowatt hour. <br />2 - • <br />