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2.4. ERMUSR 03-15-2016 Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Troy Adams, P.E. —General Manager John Dietz—Chair Al Nadeau—Vice Chair Daryl Thompson—Trustee MEETING DATE: AGENDA ITEM NUMBER: March 15, 2016 2.4 SUBJECT: Comments of the Minnesota Department of Commerce, Division of Energy Resources;Notice of Minnesota Public Utilities Commission Meeting BACKGROUND: In March 2015 Elk River Municipal Utilities and Connexus Energy executed mutually agreeable terms with a multiyear arrangement for the Connexus service territory within the City of Elk River corporate boundary to be transferred to ERMU. The terms negotiated in the service territory transfer agreement assign ERMU the authority to jointly file the request for MPUC to modify the electric service territory boundary. Connexus reviewed and approved that language in early January 2016. This filing was then made electronically on January 22, 2016. DISCUSSION: The filing has been accepted by the MPUC and has assigned this case as Docket No. E234, E101/SA-16-58. In cases of electric service territory boundary change requests, the MPUC seeks input from the Minnesota Department of Commerce. The Department of Commerce has reviewed the ERMU/Connexus joint filing and has recommended approval. The MPUC has then scheduled the hearing for March 24. ATTACHMENTS: • Letter—Comments of the MN Department of Commerce, Division of Energy Resources Docket No. E234, E101/SA-16-58—Dated February 10, 2016 • Notice of Minnesota Public Utilities Commission Meeting—Dated March 11, 2016 • Minnesota Public Utilities Commission Meeting Agenda—March 24, 2016 POWERED IY Page 1 of 1 NATURE Reliable Public Power Provider POWERED To SERVE 52 February 10, 2016 Daniel P. Wolf Executive Secretary Minnesota Public Utilities Commission 121 7th Place East, Suite 350 St. Paul, Minnesota 55101-2147 RE: Comments of the Minnesota Department of Commerce, Division of Energy Resources Docket No. E234, E101/SA-16-58 Dear Mr. Wolf: Attached are the comments of the Minnesota Department of Commerce, Division of Energy Resources (the Department or DOC) in the following matter: The Joint Request of Elk River Municipal Utilities and Connexus Energy, collectively the Parties, to Modify Electric Service Territory Boundaries. The petition was filed on January 22, 2016 by: Kaela Brennan McGrann Shea Carnival Straughn & Lamb, Chtd. 800 Nicollet Mall, Suite 2600 Minneapolis, MN 55402 The Department recommends that the Minnesota Public Utilities Commission (Commission) approve the requested service territory boundary transfer from Connexus Energy to Elk River Municipal Utilities, and is available to answer any questions the Commission may have. MnGeo should also make the requested changes to the service territory maps. Sincerely, /s/ DALE V. LUSTI Financial Analyst DVL/It Attachment 53 MINNESOTA DEPARTMENT OF COMMERCE BEFORE THE MINNESOTA PUBLIC UTILITIES COMMISSION COMMENTS OF THE MINNESOTA DEPARTMENT OF COMMERCE DIVISION OF ENERGY RESOURCES DOCKET No. E234, E101/SA-16-58 I. SUMMARY OF PROPOSAL On January 22, 2016, Elk River Municipal Utilities(the Municipal)) and Connexus Energy(the Cooperative), collectively the Parties,jointly filed a petition under Minn. Stat. Section 2166.39, subd.3, asking the Minnesota Public Utilities Commission (Commission)to modify the Parties' service territory boundaries. IL DEPARTMENT ANALYSIS A. TRANSFER OF THE AFFECTED AREA FROM COOPERATIVE TO THE MUNICIPAL Minnesota Statutes section 2166.44, subd. (a)states: ... whenever a municipality which owns and operates an electric utility (1) extends its corporate boundaries through annexation or consolidation, or (2) determines to extend its service territory within its existing corporate boundaries, the municipality shall thereafter furnish electric service to these areas unless the area is already receiving electric service from an electric utility, in which event, the municipality may purchase the facilities of the electric utility servicing the area. Exhibit A to the Petition is a map that depicts the boundaries of the Affected Area. According to the Parties, the Affected Area involves approximately 1,984 acres, and 958 customers (832 residential, 101 commercial, and 25 industrial). Although the Parties indicated they do not have a separate legal description prepared of the Affected Area, they are willing to provide whatever information is helpful and reasonably requested by MnGeo to facilitate the adjustment in the official maps. The Parties indicated that they do have a Shape or CAD file of the map attached as Exhibit A. 54 The Parties provided copies of letters that were mailed to all of the affected customers. First, Connexus sent the affected customers a letter informing them that they would soon receive their electrical service from Elk River Municipal Utilities, due to a negotiated agreement. Later, the Municipal sent the affected customers informational letters describing services and rates they provide, as well as an estimated date when the physical service provision will transfer from Connexus to the Municipal. B. COMPENSATION Minnesota Statutes Section 2166.44, subd. (b)states: The municipality acquiring the facilities shall pay to the electric utility formerly serving the area the appropriate value of its properties within the area .... In the event the municipality and the electric utility involved are unable to agree as to terms of the payment or exchange, the municipality or the electric utility may file an application with the commission requesting that the commission determine the appropriate terms for the exchange or sale. The Department notes that the Parties have agreed upon appropriate compensation. Thus, the Department agrees that the Parties' request to establish the Affected Area as part of the Municipal's service area is consistent with Minn. Stat. 2166.44, subd. (a) and (b). III. RECOMMENDATION The Department recommends that the Commission approve the requested service territory boundary transfer from Connexus to Elk River Municipal Utilities. MnGeo should make the requested changes to the service territory maps. /It 55 CERTIFICATE OF SERVICE I, Sharon Ferguson, hereby certify that I have this day, served copies of the following document on the attached list of persons by electronic filing, certified mail, e-mail, or by depositing a true and correct copy thereof properly enveloped with postage paid in the United States Mail at St. Paul, Minnesota. Minnesota Department of Commerce Comments Docket No. E234,101/SA-16-58 Dated this 10th day of February 2016 /s/Sharon Ferguson 56 co co co co co co co co co co co a a a a a a a a a Q a @ (/) U) CO U) CO CO CO to to CO CO E I I I I I I I I I I I U) U) U) ao ao U) ao U) U) ao Z• cn )O 'O LO v' c0 )O LO )O LO co , J I I I I I I I I I I I 8 J _iJ J J J J J J J EI I I 1 1 I I LL LL LL LL LL LL LL LL LL LL LL O LL LL LL LL LL LL LL LL LL L.L. LL mo O O O O O O O O O O .) U) @ to o IDN co N• o 0) 0 0 O O O N O O 0 ED. 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U C C o.d 2) U W 80 U 5000 0 SU) 0 80 0 0cn a v) 0 a o ai 5, E E c 2 C }g o C p; E c va r u c E N @ 3 c co rn N d m Z c3 Ud @ L @ �1 c @ L E C @ C CO V O O' U d CN y = y @ a TA © a @.) 2 @ 2 0 d la •2 co U N Q .0 E C7 m c o �O 00) 3 0 • E U .o 6 2 2 0 3 @ @ m y c E a C7� @ o o)c c c E 5E - o Co . —C a5 = 0 m O)C V U 00 L o U E c c c 0 o' @ co m @ c N @ 5 con — 0 a N @ L 2 N N UI 0) V L co 0 • Q Q CO C11 U W Ii JC a d 2 E U a T N C L N ILL F -, Z Y a d cco -, 0 0 2 Minnesota Public Utilities Commission NOTICE OF COMMISSION MEETING Issued: March 11, 2016 The items listed on the attached agenda will be heard at the Commission's regularly scheduled meeting. DATE: Thursday, March 24, 2016 TIME: 9:30am LOCATION: Public Utilities Commission Large Hearing Room 121 7th Place East, Suite 350 St. Paul MN 55101-2147 DIRECTIONS: Visit mn.gov/puc or Call 651-296-0406 or 1-800-657-3782, Option 3 Occasionally items may need to be rescheduled. Commission staff will make all reasonable efforts to notify you if your item is rescheduled. However, if you wish to confirm this hearing date,please visit mn.gov/puc or call 651-296-0406 or 1-800-657-3782. Bad weather? Find out if a meeting is canceled. Call(toll-free) 1-855-731-6208 or 651-201-2213 or visit mn.gov/puc Change your mailing preferences: E-mail docketing.pucAstate.mn.us or call 651-201-2234 The Commission hearing rooms have wheelchair access. If other reasonable accommodations are needed to enable you to fully participate in a Commission meeting(e.g., sign language or large print materials),please call 651-296-0406 or 1-800-657-3782 at least one week in advance of the meeting. Persons with hearing loss or speech disabilities may call us through their preferred Telecommunications Relay Service. PHONE 651.296-0406•TOLL FREE 1-800-657.3782•FAX 651-297-7073 121 7*"PLACE EAST•SURE 350•SAINT PAUL,MINNESOTA 55101.2147 MN.GOV/PUC 58 Minnesota Public Utilities Suite Plac0 Saint Paul,MN Commission 55101-2147 Meeting Agenda 121 7th Place East Thursday, March 24, 2016 9:30 AM Large Hearing Room INTRODUCTION ORAL ARGUMENT ITEMS DELIBERATION ITEMS DECISION ITEMS 1. Details 2016-038 * P6445/RV-16-47 IBFA Acquisition Company, LLC In the Matter of the Revocation of IBFA Acquisition Company, LLC's Certificate of Authority. (PUC: Rebholz; DOC: Linscheid) NOTE: the Company did not file reply comments. Staff supports the DOC's recommendation to revoke the Company's authority. 2. Details 2016-039 * P6598/RV-16-49 Yestel USA, Inc. In the Matter of the Revocation of Yestel USA, Inc.'s Certificate of Authority. (PUC: Rebholz; DOC: Linscheid) NOTE: the Company did not file reply comments. Staff supports the DOC's recommendation to revoke the Company's authority. 3. Details 2016-033 E234,101/SA-16-58 Elk River Municipal Utilities; Connexus Energy In the Matter of the Joint Request of Elk River Municipal Utilities and Connexus Energy, Collectively the Parties, to Modify Electric Service Territory Boundaries. (PUC: Twite; DOC: Lusti) 4. Details 2016-034 E287,002/SA-16-22 City of North St. Paul; Northern States Power Company d/b/a Xcel Energy In the Matter of the Joint Request of the City of North St. Paul and Northern States Power Company (d/b/a Xcel Energy)for Approval to Terminate a Service Exception Agreement. (PUC: Fournier; DOC: Lusti) 59 PUC Agenda Meeting Meeting Agenda March 24, 2016 5. Details 2016-042 * G002/M-16-40 Northern States Power Company d/b/a Xcel Energy In the Matter of the Petition of Northern States Power Company (Xcel)for Approval of Extension Surcharge (ES)for Ulen, Hitterdal, and Surrounding Communities. Should the Commission approve Northern States Power Company's (Xcel) proposed Extension Surcharge (ES) rider for the communities of Ulen, Hitterdal, and the Surrounding Areas? Should the Commission approve Xcel's proposed 75 foot service line extension allowance for its NAS/ES riders'tariff sheets? Should the Commission approve Xcel's proposed Assignment and Assumption Agreement between Greater Minnesota Transmission (GMT), West Central AG Services, and Xcel? Should the Commission accept Xcel's proposed revision of the service area for the Barnesville and Holdingford ES riders approved in Docket Nos. G-002/M-14-583 and G-002/M-15-195? Should the Commission accept Xcel's proposal to continue its annual NAS/ES project reporting requirements on March 1 of each year, pursuant to Docket No. G-002/M-14-583? (PUC: Brill) 6. Details 2016-043 ** E017/GR-15-1033 Otter Tail Power Company In the Matter of the Application of Otter Tail Power Company for Authority to Increase Rates for Electric Service in the State of Minnesota. Should this filing be accepted, the proposed rates suspended, this matter referred to the Office of Administrative Hearings, and interim rates set as requested by the Company? (PUC: Bender, Schwieger, Kaml, Krishnan,Twite, Bahn, Alonso) 7. Details 2016-044 * E017/MR-15-1034 Otter Tail Power Company In the Matter of the Application of Otter Tail Power Company for Approval of a New Base Cost of Energy. Should the Commission approve Otter Tail's proposed new base cost of energy? (PUC: Alonso, Bender) 8. Details 2016-041 * IP6959/CN-16-140 Red Pine Wind, LLC In the Matter of Application of Red Pine Wind Project, LLC for a Certificate of Need for the 200 MW Red Pine Wind Project in Lincoln and Lyon Counties. Should the Commission grant the variances and approve the exemption requests? (PUC: DeBleeckere) 60 PUC Agenda Meeting Meeting Agenda March 24, 2016 9. Details 2013-414 ** PL6668/CN-13-473; North Dakota Pipeline Company LLC PL6668/PPL-13-474 In the Matter of the Application of North Dakota Pipeline Company LLC for a Certificate of Need for the Sandpiper Pipeline Project in Minnesota; In the Matter of the Application of North Dakota Pipeline Company LLC for a Pipeline Routing Permit for the Sandpiper Pipeline Project in Minnesota. • What action should the Commission take concerning the White Earth Band of Ojibwe's Amended Motion? (PUC: Ek) • Should the Commission reconsider or clarify its January 11, 2016 Order Lifting Stay, Rejoining Need and Routing Dockets, and Referring for Contested Case Proceedings? The Commission has the authority to accept or decline a petition for reconsideration with or without a hearing or oral argument. (Minnesota Rules 7829.3000, Subpart 6) In other words, a decision on a petition for reconsideration can be made without taking oral comments at the Commission meeting. 10. Details 2015-134 ** PL9/CN-14-916; Enbridge Energy, Limited Partnership PL9/PPL-15-137 In the Matter of the Application of Enbridge Energy, Limited Partnership for a Certificate of Need for the Line 3 Pipeline Replacement Project in Minnesota from the North Dakota Border to the Wisconsin Border; In the Matter of the Application of Enbridge Energy, Limited Partnership for a Route Permit for the Line 3 Pipeline Replacement Project in Minnesota from the North Dakota Border to the Wisconsin Border. • Should the Commission reconsider its February 1, 2016 Order Joining Need and Routing Docket? (PUC: Ek) The Commission has the authority to accept or decline a petition for reconsideration with or without a hearing or oral argument. (Minnesota Rules 7829.3000, Subpart 6) In other words, a decision on a petition for reconsideration can be made without taking oral comments at the Commission meeting. ADJOURNMENT *One star indicates agenda item is unusual but is not disputed. **Two stars indicate a disputed item or significant legal or procedural issue to be resolved. (Ex Parte Rules apply) Please note: For the complete record, please see eDockets 61