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<br />F.b-06-1001 16:31 <br /> <br />From-PETERSON FRAM eERGMAN <br /> <br />6511181153 <br /> <br />T-601 P 001/004 f-150 <br /> <br />W;:nr.;;ll ( PtkrSOll <br />Jerome P. Pill~ <br />Daniel W:n FI~(fI <br />Glen(\ A f\C'r~lr\dl) <br />lann Mich;J,o?:l Millei <br />Mjlhil~.1 T Oberll;' <br />Sl,:>\lt'-fl H. Br'..H1". <br />f) ~I\d \)..! filii n i n;.; <br />Esther E. McGinni,.; <br />!ellrey I. Coh~n <br /> <br />xETERSQN.. .. <br />FAAM.. ....BERGMAN <br />~,i?\~:;::;:mlm';:'~;i';\\:,lr.',:tt",":";"['~'fI".:IY~~;:~i~.2Z:L <br /> <br />Suite 300 <br />')0 E;,:\s[ Filth SIre:;>! <br />Sf Paojl.MN ')')101-1107 <br />(D')lj]()I.8i'J')'i <br />IVil, n8'17'FI far5il11i1c <br /> <br />. <br /> <br />Direct Dial #(6511 290.6907 <br /> <br />February 6, 2002 <br /> <br />Joe Lynch <br />City Administrator <br />City of Arden Hills <br />1245 Highway 96 <br />Arden Hills MN 55112 <br /> <br />RE: UnderglOunding of Electrical Distribution Lines <br /> <br />Dear Joe: <br /> <br />Based upon my discussions with you and with representatives from Xcel Energy, it is my <br />understanding that Xcel Energy is constructing an above-ground electrical distribution line <br />northerly from Highway 96 on the west side of Lexington Avenue to County Road I. The . <br />purpose of the project was to create some redundancy in the Xcel Energy system for a larger <br />area. The timing of the construction was triggered by development of property in the Wispark <br />area of Shoreview. <br /> <br />Xcei Energy discussed the possibility of this project with former city staff members and <br />obtained a permit from Ramsey County. The project does not require excavation within the <br />improved portion of the right-oj-way of Lexington Avenue and will not obstruct the flow of <br />traffic. xcel Energy did not get a permit from the City of Arden Hills before commencing the <br />project. <br /> <br />In 1971 the City adopted Ordinance 145 (1971 Regulations) which required that electrical <br />distribution lines be installed underground. The 1971 Regulations also described a process <br />which would be followed when a public utility company wanted to extend electrical distribution <br />lines. The regulations did not specifically impose or allocate financial responsibility tor <br />construction costs. Presumably, when electrical distribution lines are constructed in <br />connection with commercial or residential developments, the developer absorbs the cost. <br /> <br />In 1999, in a case enlitled Northern States Power Company vs. Citv of Oakdale, 588 NW 2d, <br />534, the Minnesota Appellate Court determined that a local unit of government has the <br />authority to adopt regulations similar to the City's 1971 Regulations. The Appellate Court <br />affirmed the authority of the Public Utilities Commission to regulate rates and charges imposed <br />by utility comp~nip.s. The Appellate Court, in th<> O~kdal<> case, did not grant all of the relief <br /> <br />e <br /> <br />"'I::",;\I'Mrl',,;,'IJ" '.If'..... ',r-."JN <br />