5.7. ERMUSR 03-13-2013 - Laserfiche WebLink

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/1/IMIn IIIIIM tg .Minnesota Municipal Utilities Association Efforts at Compromise Municipal and Co-op Customer Growth, 1974-2011 Municipal electric utilities have made three recent efforts to 800,000 find a compromise with electric 700,000 cooperatives on the service territory issue—as part of 600,000 - Co-op discussions concerning industry 500,000 restructuring in 1998, an effort 400,000 at mediation in 2001 and a joint task force that met in the spring 300,000 and summer of 2008. 200,000 Muni 100,000 The first of these efforts occurred in 1998 and 1999 during a 0 series of meetings between 1974 1980 1986 1992 1998 2004 2010 representatives of municipal and cooperative electric utilities, accommodate the the cooperatives, were not willing which were held to discuss issues surrounding to relinquish the fundamental right of municipal electric industry restructuring. While there was utilities to grow with their cities. little difference in the positions of the two groups )n restructuring itself, there was no resolution of The most recent attempt to find a compromise to the disagreement regarding the service territory the service territory dispute occurred in the spring issue. The co-ops insisted that any change in and summer of 2008. This effort was the most state law allowing municipal electric utilities productive so far, with the municipal utilities and to grow with their cities must include language the cooperatives making a number of significant that municipal expansion would be restricted and concessions. In fact, by the time a joint task force eventually ended. This position was completely had its last meeting in July 2008, the two sides had unacceptable to municipal representatives. The reached agreement on nearly all the issues that had co-ops' subsequent efforts to pressure municipal been brought up for consideration. Unfortunately, utilities to accept their offer killed any further the process ended without achieving a resolution discussion at that time. because the co-ops terminated the negotiations. The second attempt to mediate service territory MMUA Position disputes came in October 2001, in response to The designation of electric utility service territory an appeal from state legislative leaders urging is fundamentally a state issue, fully governed by both sides to come to terms on the issue. After state law in Minnesota and in other states. This preliminary discussions between the Minnesota issue should be left to the states—where it's always Rural Electric Association and MMUA, the been. There is no justification for Congressional parties embarked on a new round of negotiations involvement in the service territory issue, whether with a professional mediator. Unfortunately, the in the Farm Bill, an appropriations measure, or a mediation effort ended rather quickly because the budget bill. cooperatives seemed only interested in discussing municipal concessions. The municipals, willing and ready to discuss a variety of approaches to 2013 Federal Position Statements/ 17