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Exhibit 3-B Page 7 of 13 Docket No. E002/M-99-799 MPNorthern States Power Company Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK * MPUC NO. 2 GENERAL RULES AND REGULATIONS (Continued) Section No. 6 Original Sheet 29.2 SPECIAL FACILITIES (Continued) E. Svedal Facilities Payments (Continued) 3. Where undergrounding of Distribution Facilities as a Special Facility is ordered by a City, and payment for excess expenditure is not made or arranged by the City, the Excess Expenditures will be recovered from the Company's customers located in the Cii through a rate surcharge set forth in Section 5.3 (F) and the City Requested Facilities Surcharge Rider subject to the following conditions: a. The Company shall provide written notice to the City containing the following: i. the estimated total excess expenditures required for the designated City undergrounding project and an estimate of the resulting surcharge; ii. notice to the City Clerk that the City has sixty (60) days from it receipt of the notice to file with the Commission an objection to the proposed surcharge under Minnesota Statutes 2168.17 or other applicable law. The notice shall contain a brief statement of facts and tariff or other legal authority on which the Company bases its right to surcharge the ratepayers located in the City. b. Within the sixty (60) day period noticed by the Company, the City may give written notice to the Company of its intention to pay all, a potion or none of the estimated Excess Expenditures, or otherwise enter into an agreement with the-Company regarding payment of any Excess Expenditures. If the City does not respond in writing within the sixty (60) days, it is deemed to have elected not to pay any portion of the Excess Expenditures and will have waived its right to object to the Company's right to surcharge ratepayers in the City for the Excess Expenditures. Such failure, however, is not a waiver of the City's right to object to the Company's Excess Expenditures surcharged to ratepayers in the Cii, which objection may be exercised pursuant to other applicable law. c. A rate surcharge set forth in Section 5.3(F) and the City Requested Facilities Surcharge Rider may be used to recover the excess Expenditures of Distribution Facilities when such projects are initiated and controlled by a city even if the city does not act within its police powers to require the undergrounding project to be completed and the City and Company mutually agree in writing to using such a surcharge. 1' (Continued on Sheet No. 6-29.3) Date Filed: 06-1 1-42 By: Kent T. Larson Effective Date: State Vice President i Minnesota & Dakotas Docket No. E0021M-99-799 Order Date: 1415861 v1