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Exhibit 3-B Page2 of 13 Docket No. E002/M-99-799 Northern States Power Company Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK,. MPUC NO. 2 GENERAL RULES AND REGULATIONS (Continued) Section No. 6 Original Sheet 27.1 5.3 SPECIAL FACILITIES (Continued) A. Definitions (Continued) N 5. "Standard Facilities" are those facilities whose design or location constitute the reasonable and prudent, least-cost alternative that is consistent with the existing electric system configuration, will meet the needs of the Company's customers and will maintain system reliability and performance under the circumstances. In determining the design or location of a `Standard Facility", the Company shall use good utility practices and evaluate all of the circumstances surrounding the proposal, including (i) public and employee safety in the installation, operation and maintenance of the facility, (ii) compliance with the National Electrical Safety Code, other applicable engineering standards and electric utilii norms and standards, (iii) electric system reliability requirements, (ii) the presence, age, condition and configuration of existing facilities in the affected area, (v) the presence and size of existing right-of-way in the affected area. (vi) existing topology, soil, spacing, and any environmental limitations in the specific area, (vii) existing and reasonably projected development in the affected area, (viii) installation, maintenance, useful life and replacement cost factors, and (ix) other relevant factors under the particular circumstances. • 6. "Special Facilities" are non-standard facilities or the non-standard design or location of facilities as provided in Section 5.3(B). 7. "Excess Expenditure" is defined as the total reasonable incremental cost for construction of Special Facilities, including: the value of the un-depreciated life of existing facilities being removed and removal costs less salvage: the fully allocated incremental labor costs for design, surveying, engineering, construction, administration, operations or any other activity associated with said project; the incremental easement or other land costs incurred by the Company: the incremental costs of immediately required changes to associated electric facilities, including backup facilities, to ensure reliability, structural integrity and operational integrity of electric system; the incremental taxes associated with requested or ordered Special Facilities; the incremental cost represented by accelerated replacement cost if the Special Facility has a materially shorter life expectancy than the standard installation; the incremental material cost for all items associated with said wnstrudon, less salvage value of removed facilities. and any other prudent costs incurred by Company directly related to the applicable Special Facilities. N (Continued on Sheet No. 6-27.2) Date Filed: 06A 1-02 By: Kent T. Larson Effective Date: State Vice President w Minnesota&Dakotas Docket No. E002/M-99_799 Order Date: 14158610