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53090.2 <br />TO:Mayor and City Council <br />FROM:Mark E. Bernhardson, City Administrator <br />DATE:June 4,1990 <br />SUBJECT: Electrical Franchise Territory <br />Attachment:A.Dan Kokesh Letter Dated 5/2/90 <br />B.NSP Letter Dated 5/17/90 <br />C.City of Orono Letter to Dan Kokesh Dated 6/5/90 <br />D.Territorial Layout of Existing Electrical <br />Franchisees ir Orono <br />ISSUE - <br />1.Presentation of information to Council regarding process for <br />territorial realignment between existing electrical franchises. <br />2.Determination by Council as to whether they desire to provide <br />any lead role in this matter. <br />INTRODUCTION - As noted in Attachment A an individual who is <br />currently in the Wright Hennepin territory had requested that <br />the territory be shifted, so they would be within Northern States <br />Power franchise. As stated in the letter this is primarily <br />because of the differential in rates. <br />The City requested a response to the process by Northern States <br />Power as noted in Attachment B. <br />DISCUSSION - As noted in Attachment B the issue of electrical <br />franchise territories are determined by the Minnesota Public <br />Utility Commission. Since 1974 they have apparently never <br />granted any territorial shift based solely on rate differencial. <br />As noted in Attachment D the area served by Wright Hennepin in <br />Orono is substantial but rather convoluted. NSP also indicated <br />that they do have an excellent working relationship with Wright <br />Hennepin and probably would not aggressively seek the territory <br />or at least one that would cause a disruption in that <br />relationship. <br />While the City itself would probably not be a party with legal <br />standing to such a change if there were soma prospect that a <br />change could be made the City could provide a coordinating role <br />to assist the private property owners petitioning to have those <br />areas in Orono currently in Wright Hennepin be transferred to <br />NSP. <br />On the other hand given the nature of decisions to date together <br />with NSP's predisposition not to acquire it, anything apart from <br />determining if Wright Hennepin would be interested in having that <br />area transferred to NSP; would probably not be fruitful.