05-13-2002 Council Packet - Laserfiche WebLink

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1995 Updated Model Gas and Electric Utility Franchises . The SRA and the League drafted model utility franchise ordinances. The increasing deregulation in both the elecuic and gas utility industries necessitated revisions to the previous model franchise ordinances approved by the SRA. 1993 Minnegasco and NSP Rate Cases-FAS lt>6. The SRA played a substantial role in one of the major issues to be raised before the PUC in several years-FAS 106. A post retirement medical health care benefits “transition obligation" was sought by Minnegasco and NSP as a result of the accounting standard known as FAS 106. which required a change from cash basis to accrual accounting for such benefits. This change involved millions of dollars (Minnegasco S24 million; NSP $160 million) to be borne either by the utility .shareholders or utility ratepayers. The PUC originally voted in May 1993 to disallow one-half of Minnegasco’s transition obligation, but ultimately reversed its decision and allowed tho.se e.\pen.ses. The.se expen.ses will be spread out over a twenty-year period in rates. 1992 Municipal Pumping Rate Savings. Together with the City of St. Paul and the Municipal Pumpers A.s.siK'iation. SRA efforts maintained pumping class rates at 2-3‘.^ below general service class and continued the municipal pumping exemption from the eleven-month demand ratchet rate impo.sed on commercial-industrial iLscrs. The SRA*s expert consultant estimated that avoiding the eleven-month demand ratchet charge alone saves 7.5-10‘.^ in annual municipal pumping charges paid to NSP. 1991 Tier System Abolished. The PUC fully accepted SRA arguments that tlie Tier Sy.stem was not based on cost or good policy and ordered it abolished in favor of equal rates through the local calling area 'fhis has resulted in millions of dollars in annual savings for .suburban residential and business customers of US We.st. 1991 NSP General Rate Case . The SRA actively intervened in this NSP filing, wherein the PUC rejected NSP's $12(MKX).000 rate increase request. The SRA focused on the municipal pumpers’ rate and .street lighting. The SRA. traditionally the only intervenor .seeking reduced increases in the municipal pumping rate, was succe.ssful in that effort. 1990 1 'S \\ est Incentive Regulation Plan . The SRA actively intervened in a case involving US We.st’s request to be partially deregulated in its local .service to residential and business customers. The final order established stable rates for Twin City local telephone customers of US West 'Jirough August of 1994. US West .shared .50'.^ of its revenues above a 13.59J return on equity. 1987 Norllmestcrn Bell Extended Area Service Pocket The SRA made significant progress in demonstrating cost inequities in the Twin City Metropolitan Area Northwestern Bell service area. SRA participation in this ca.se further laid the groundwork for the 1991 order abandoning the Tier System. 1986 Uniform Franchises . The gas and electric unifomi franchi.ses were negotiated by the SRA with NSP and Minnega.sco in the 19S()s. Many SRA-negotiated franchises arc still in place. J.MS-:135(jOv1 sc 160-3 i