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<br />, \\icrr.en E.. Pelersorl <br />- Jerome P Filla <br />Dame! Witt Fram <br />Glenn A. Ber.eman <br />tlln rV\ichael~Miijer <br />-hael1. Oberle <br />_yen H. I:3runs~ <br />Jdul \V Fahning <br />Esther E. McGinnis <br />Jeffrey L Cohen <br /> <br />PETERSON <br />FRAM BERGMAN <br />~~~llilll[~[iii,J;jJ?;wJii!l!~:~;;.I)iC:i1jfk_'i1i;:i;%~~jE;j)~~:\f;_~@};?f~~L;:: <br /> <br />Suite ~O() <br />SO East Fifth Strec:l <br />St. Paul, MN ,),)IOI-IIClI <br />16"'112111-89"i"j <br />16'511228-17')3 facsimile <br /> <br />Direct Dial #(651) 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 />I ;:[:10011 <br /> <br />J CiTY OF_~~~\: h,i_LJJ <br /> <br />RE: Undergrounding of Electrical Distribution Lines <br /> <br />Dear Joe: <br /> <br />- <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 theXcel 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 />Xcel 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-of-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 for <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 />e <br /> <br />In 1999, in icase entitled Northern States Power Comoanv vs. City 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 ofthe Public Utilities Commission to regulate rates and charges imposed <br />by utility companies. The Appellate Court, in the Oakdale case, did not grant all of the relief <br /> <br />'i,l ::O'J ,'.U~,'ITTED '1\' \\'I:;('JN:"I\ <br />