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James M. Stkommen <br />Aiiorncy at Law <br />Direct Dill (61 337 9233 <br />Emul; jsuummen(?keoAciJ> |r4vcti.cum <br />MEMORANDUM <br />TO:Mayor and City Council <br />FROM:Jim Strommen <br />DATE:May 3.2002 <br />RE:Suburban Rate Authority (SRA) <br />The SRA is a joint powers organi/ution currently comprised of 34 Twin Cities suburban <br />municipalities totaling over 850,(KX) in population (member list attached). In 1975, the SRA <br />changed from a regulator of gas franchi.ses to a utility rate watchdog for suburban municipalities and <br />residential and business customers within the municipalities. <br />The SRA has often been the lone voice on issues ranging from objection to the Qwest (then <br />Northwestern Bell) Tier System of rates to municipal boundaries for area code splits in the Twin <br />Cities area. The SRA has help .set policy and has led or participated in efforts that have saved <br />ratepayers millions of dollars over the past 25 years. <br />The following is a summary' of SRA participation in gas, elecu-ic and telecommunications matters <br />dating back to its beginnings in 1975. <br />CURRENT AND PAST SRA ISSLTLS <br />2(M>2 Reliance Energy “No Surprise BilP* Investigation . The SRA is currently participating in <br />a review of bidding procedures and information provided by Reliant Energy Minnegasco to 23,(K)0 <br />customers who participated in a “No Surprise Bill” program the winter of 2()01-2(H)2. As of the <br />date of this Memorandum there are questions about whether the lowest bid was used and whether <br />adequate information was provided to customers who participated. Reliant purchased the gas for <br />the program from an affiliate. <br />J.MS-:i3500vI <br />SL'160-3