5.4. ERMUSR 02-10-2015 - Laserfiche WebLink

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DMD2L(� IVIIVIWW Position Statement Local Regulation Background a _,. _ M,. Like many states, Minnesota has two parallel I `" 7 a regulatory structures for electric and gas ,� ..� utilities. Rates and service practices of ` investor owned utilities are regulated at the T „A __ 7., i-" state level by the Minnesota Public Utilities Commission. Consumer-owned utilities— e+ ' on, . -44... municipal utilities and cooperatives—are . _ =„ '" regulated at the local level. Municipal utilities z on 4MAN, - LL -.,a, g, are regulated by the city council or by an "" i , ,,;. appointed or elected local public utilities 1 i —'__ it— commission. Cooperatives are regulated by _ ` �.. their boards of directors. ;*tw 4 In recent years some investor-owned utility iii. - � " customers have been calling for changes to the traditional rate base—rate of return regulation .rr — r �` r i employed by the MPUC to enable IOUs to it be more responsive to customer concerns and desires. The current e-21 Initiative is ' - , examining potential modifications to the ., . . regulatory model for investor-owned utilities. i Utility employees including General Manager Connie Wangen,center, MMUA takes no position on how investor- welcomed customers to the October 2014 Princeton Public Utilities open owned utilities should be regulated,but we house. note that the move to revise the regulatory model to enable IOUs to be more responsive to legislature should respect and preserve our tradition their customers would align our statewide regulatory of effective local regulation as it considers potential model more closely with municipal utilities, which are modifications to the statewide regulatory model for both owned and governed by their customers. investor-owned utilities. The city councils and commissions that govern municipal MMUA Position utilities are close to the customer. City councilors or Our legislature should respect and maintain Minnesota's commissioners live in the community and are customers longstanding tradition of effective local regulation for of the utility they govern. They are fully attuned to municipal electric and gas utilities. public opinion and understand the role that the utility can play in helping the community progress and prosper. i __ -4. We respect the efforts of those who seek to reform . the statewide regulatory model that governs our * '"", - 1 colleagues in the investor-owned segment of the industry.And we hope that they will respect the _;-",'!' ; integrity of our local regulatory model, which has =. been in place for more than a hundred years and has stood the test of time. / We believe that local regulation is the most r * effective and responsive form there is, and that important decisions that affect utility customers are Blooming Prairie city and municipal utility policymakers and staff best made as close to the customer as possible. Our gathered at a community open house. 10/2015 State Position Statements