1998-05-27 Packet - Laserfiche WebLink

Home Browse Search

MEMO DATE : May 22, 1998 TO Honorable Mayor and Council FROM : Jim March RE NSP Gas Franchise The City has received a request from Northern States Power to allow them to have a gas franchise within the City. Included in your packet is a copy of their sample gas franchise. i have asked Greg Hellings to review this document. Also included in your packet is a letter from NSP asking the City to allow them to have permits to place gas mains within the City prior to having a signed gas franchise with the municipality. i have strong reservations against granting this request. I have been trying to locate in the City files our gas franchise with Minnegasco. A few years ago Minnegasco had purchased Midwest Gas that was supplying service to the City. Prior to Midwest Gas, the Iowa Public utilities and Iowa Power were the suppliers. I am not sure what length of franchise we have with Minnegasco and whether or not the contract is non - exclusive. I will ask the City Attorney to be present at our meeting to comment on this issue. I had a recent meeting with four representatives from Northern States Power when they presented me with this request. Apparently NSP has gas transmission lines just east of Interstate 35E. They would like to run gas main into Centerville and compete with Minnegasco,for the undeveloped areas of Centerville. They have particular interest in serving our industrial area, the Parkview development and the undeveloped land south of Center Street. I will be contacting Minnegasco to discuss the NSP franchise request and the status of our franchise agreement with them. I have inquired about franchise fees with NSP. It was indicated they do pay franchise fees in some communities. They do not wish to pay franchise fees and have not included them in their sample gas franchise. I believe there are many issues that are included in this document that are not written in the best interest of the City.