07-27-1982 HUCMSpecial Meeting
July 27, 1982
All Commissioners were present, also present were Mgr. Alexander,
Ruth Hakel, Tom Lyke, Counsel Peterson, Senator John Bernhagen,
Don Swanson of Associated Consultants and Dick Kirkham of
Minnesota Municipal Utilities Association.
The meeting was called to order at 1:00 p.m. by President Filk.
President Filk welcomed Senator Bernhagen and Dick Kirkham stating
that the purpose of the meeting was to consider legislation
concerning municipal utilities.
Dick Kirkham then presented the proposed rules on cogeneration
as it pertains to municipal utilities. The State Public Service
Commission estimates the costs to implement this program to
$600,000. Minnesota Municipal Utilities Association estimates
the amount would run 1.3 million dollars. He also stated that
all options seem to be in favor of cogeneration and that the
Public Service Commission would not co- operate or consider
suggestions on the matter.
Lengthy discussion then took place. Senator Bernhagen suggested
appealing to the Rules Committee for any changes suggested by
Minnesota Municipal Utilities Association. Dick Kirkham added
that no doubt the intent was good but the implementation would
be hard and costly. He also suggested that each utility should
send two persons to informational meetings set up by the Public
Service Commission. Each person should be prepared to testify
and furnish written testimonies.
A motion was made by Commissioner Tracy, seconded by Commissioner
Daggett to adopt the following resolution:
Resolution 4
Whereas, the Minnesota Legislature passed, in 1981, legislation
(Section 216B.164 of Minnesota Statutes) which directed the
Minnesota Public Utilities Commission to develop rules requiring
all electric utilities to facilitate the development of
cogeneration and small power production in the State; and
Whereas, the Minnesota Public Utilities Commission has proposed
rules to implement Minnesota Statute 216B.164 which would cause
the Hutchinson Utilities Commission to incur considerable and
unnecessary expense which would have to be passed on to the
citizen -rate payer of the Hutchinson Utilities Commission; and
Whereas, while the Hutchinson Utilities Commission concurs in
the desire of the Minnesota Legislature to encourage the
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development of alternative energy, the Hutchinson Utilities
Commission disagrees with the rules implementing Minnesota
Statute 216B.164 as the rules fail to strike a proper balance
between benefit to the qualifying facility and benefit to
the rate payer; and,
Whereas, the proposed rules of the Minnesota Public Utilities
Commission have the potential of interferring with the long
established position of the Minnesota Legislature that the
municipally -owned electric utilities not be regulated by
the Minnesota Public Utilities Commission.
Now Therefore Be It Resolved:
1. That the Hutchinson Utilities Commission opposes
the adoption of the rules on cogeneration and
small power production as proposed by the Minnesota
Public Utilities Commission;
2. That the Hutchinson Utilities Commission supports
the efforts of the Minnesota Municipal Utilities
Association in seeking to minimize the impact of
the proposed rules on the operations of the
Hutchinson Utilities Commission and the other
municipally -owned electric utilities in Minnesota;
3. That the Hutchinson Utilities Commission reiterates
its position that regulation of the Hutchinson
Utilities Commission and the municipally -owned
electric utilities in Minnesota is best and most
efficiently accomplished at the local level;
4. That copies of this resolution be distributed to
the Governor of Minnesota, the members of the
Minnesota Legislature representing the City of
Hutchinson and the members of the Minnesota
Public Utilities Commission.
President Filk thanked Senator Bernhagen for his participation
at the meeting.
Don Swanson of Associated Consultants then presented information
on the proposed tie with Northern States Power. He cited the
savings that could be generated by buying Northern States Power
economy power and by its wheeling hydro power.
After discussion a motion was made by Commissioner Tracy, seconded
by Commissioner Daggett to instruct staff and Associated Consultants
to prepare specifications for a tie with Northern States Power
and advertise for bids.
Mgr. Alexander presented figures on costs to install a gas
main in the Maryview Addition.
After discussion a motion was made by Commissioner Tracy,
seconded by Commissioner Daggett to extend the gas main into
the Maryview Addition. Motion was carried.
A motion to adjourn at 3:05 p.m. was made by Commissioner Daggett,
seconded by Commissioner Tracy. Motion was carried.
Clinton Tracy, Secretary
i
ATTEST
H. W. Filk, President
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