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Saturday,November 15.2003
<br /> k•
<br /> XCEL from Al cal and Electronics Enginee " t
<br /> • an industry trade group, an. 4'.
<br /> Keyytr ovision calls for$50 , are designed to meet new sere
<br /> 11v �✓ for vice Hiles for all utilities set
<br /> to some customers 7 sthe n Public. 1.Utilities `
<br /> payment
<br /> A key provision calls for$50 for the Commerce Depart- Anatomy of dispute °'.' •
<br /> payments to customers whose ment."We've made things a lot The dispute over Xcel's ser- '
<br /> power is 3ff for more than 24 tighter a lot more comprehen- vice quality and the accuracy of ]
<br /> hours, except during extreme sive . . . with a lot more strin- its reports to the state erupted
<br /> emergencies,and to those who gent underperformance pay- last fall following charges by
<br /> have more than six power fail- ments than before." some Xcel employees that the ,
<br /> ures of at least five minutes in a utility had falsified repair rec-. -}
<br /> 12-month period. Any non-
<br /> Xcel optimistic ords to understate power fad R
<br /> j compliance payments, which Xcel is confident it carrjneet ore times: State regulato r 1
<br /> could million total $10 mlion for the the new measurements,such` hired Fraudwise Inc of Fargo a=?
<br /> firmf year,would be'split 50-50 include quitker phone se vice N D to investigate the allea
<br /> between Xcel customers and lower average power'fadure dons. s' '
<br />- investments in utility improve- times and frequencies, and The Fraudwise report, is '
<br /> ments to fix the problems, prompt response to calls about sued in August,said that Xcel?
<br /> rather than going to the state, natural gas leaks. .,. , . Th- customer service records were
<br /> Xcel said. The Public Utilities "We plan to exceed all f the incomplete and unreliable and
<br /> Commission would decide standards," said Dave SparJ y, that some records apparently,,
<br /> how rebates would be.allocat- Xcel's vice president for gov' had been manipulated m give
<br /> ed tp customers ernmen(and regulatory r the appearance of better ' a i 1
<br /> "Many-ottliese standards 'itt fprmahce.. - .) "'
<br /> penalties • ' much higher than the cotmter„a Th'h Xcel proposal addr
<br /> If Xcel misses the standards parts -for utilities;in etc ntariy of Fraudwrses recnralt
<br /> for telephone response time, states." .e".¢ mend4tiotls including turd �,t
<br /> pro$tpt'meter reading; emer Nevertheless,he Said:- -`takinka'tlibrdugh feview``of1W
<br /> gency natural gas response was a very productive out- power-failure documentation
<br /> times and fewer customer come. Part of this proposal is process,beefing up its internal
<br /> complaints to the Public Utili- that the same parties will meet controls and changing its com=
<br /> ties Commission, the plan as- annually to talk about how[the pensation system to make sure
<br /> signs first-year payments of standards] can be improved, that employees who verify
<br /> $1.25 million for each bench- based on our history of apply- power failure data don't have '
<br /> mark ing them." incentives to make the records
<br /> It also specifies payments of Leslie'Sandberg, spokes- look better than they are. _.
<br /> $2 million each for missing woman for Minnesota Attorney . As part of a settlement with; ,
<br /> standards for average duration General Mike Hatch, said she regulators announced in Sep-
<br /> and average frequency of pow- couldn't comment on the pro- tember,Xcel also has agreed to.
<br /> er failures. If problems contin- posal because the people in spend an additional $15 mil-
<br /> ue,Xcel's total payments could Hatch's office who worked on lion to$20 million on tree trim-
<br /> 1 rise by $2 million a year, to a the agreementweren't available. ming, electric cable replace
<br /> maximum of$30 million. White said Xcel and regula- ment and other maintenance
<br /> Those penalties would be tors looked at new standards costs to reduce failures. It will
<br /> considerably stiffer than the being developed around the make $1 million in one-time
<br /> sanctions Xcel previously was country,particularly in Califor- refunds to customers whose
<br /> subject to.Under a 1999 agree- nia and other West Coast power failed for at least 204,
<br /> ment as part of the commis- states,which have been focus- hours from Jan. 1, 2002,,'
<br /> sion's approval of the merger of ing hard on electric utilities af- through Sept.30,2003. . s i
<br /> Northern States Power Co. of ter California's disastrous ex- Those payments, ranging
<br /> Minneapolis and New Century perience with soaring prices from$37 for failures of 20 to 29
<br /> Energies of Denver into Xcel, and rolling blackouts following hours to$250 for failures of 150
<br /> the utility's maximum penalty the state's utility deregulation. hours or more during those 21
<br /> for meeting looser standards "There's a lot more atten- months, will be refunded auto-.;
<br /> was$400,000 a year. lion to service quality around matically after Public Utility.
<br /> "We saw the opportunity to the country,"she said.The new Commission approval,Xcel said l
<br /> update Xcel's service quality standards are based in part on
<br />- standards," said Marya White, a draft of quality standards is- Susan Peterson hat
<br /> manager of energy planning sued by the Institute of Electri- sepeterson@startribunnam.
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