6.1. ERMUSR 04-12-2011 - Laserfiche WebLink

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5) Should size of a utility and its customer demographics (number of customers, residential mix, density, etc) affect the utility's CIP obligations? If so, how should it be affected? 6) Should cooperatives, municipal, or investor-owned utilities be treated differently simply because of their differing characteristics unrelated to customer demographics? 7i Should the state of the economy in general and the economics of a particular utility (for example: its energy sales growth or decline) affect CIP obligations? If so, how should it affect it? Given the number of issues and pending legislative deadlines, CIP reform could be a multi-year process. Water issues are bubbling up to the top of legislative agenda this session. Among the water issues drawing attention is HF 135 (Hackbarth, R-Cedar). This bill would rescind the authority of city councils to regulate private wells within city limits. The bill has been passed by the House Health and Human Services Reform and Government Operations and Elections Committee (which Wednesday referred the bill to the Environment, Energy and Natural Resources Policy and Finance Committee). Cities asserted their authority after property owners within city boundaries drilled their own irrigation wells within municipal water utility service areas to avoid paying city utility rates (which in many cases have been driven higher by state-mandated water conservation rates). Private well drillers have used state mandated conservation rates as a selling point for their services. This has led to a serious strain on the financial viability of public water systems where it has occurred, reports the League of Minnesota Cities, and has also resulted in large increases in water use through new private wells, affecting future water availability and security of the public water supply. No action has been taken yet on the Senate companion bill-SF 64-but pressure will build if the measure continues to proceed in the House. A related bill of interest is HF 517, which limits water conservation rate structure application to public water suppliers serving more than 1,000 people in the metro area, along with other utility-related pro posa Is. The Senate Committee on State Government Innovation and Veterans Monday, March 9 passed SF 196 (Pederson, R- St. Cloud)), which would place atwo-year moratorium on new water testing rules from the Minnesota Pollution Control Agency and would require a study of cost-impacts of new regulations. The committee re-referred the bill back to the Environment and Natural Resources Committee, which passed the bill several weeks ago. Gov. Mark Dayton March 9 announced his appointment of Senator Ellen Anderson (DFL-St. Paui) to chair the Minnesota Public Utilities Commission (PUC). Anderson served in the Minnesota Senate since 1992 and has resigned her seat. She previously chaired the Senate Environment, Energy & Natural Resources Budget Division. Sen. Anderson has been a leader in the areas of sustainable energy policy, clean water, affordable housing, family friendly workplace policies, inner city revitalization, and consumer protection and is the author of Minnesota's Renewable Energy Standard law. The appointment is official upon confirmation of the now Republican-controlled Senate.