HomeMy WebLinkAboutSuburban Rate Authority Presentation
City Council Memorandum
To: Mayor Fasbender & City Councilmembers
From: Dan Wietecha, City Administrator
Date: October 17, 2022
Item: Suburban Rate Authority
Council Actions Requested:
Informational. No action requested at this time.
Background Information:
The Suburban Rate Authority (SRA) is a joint powers entity consisting of approximately 30 Twin Cities
suburban cities with a total population over 1 million. The SRA was originally organized in 1963 to
provide collective strength in negotiating franchises with the Minneapolis Gas Company. Hastings has
been a member since at least to the early 1970’s.
Since then, the SRA has been active in matters concerning gas, electric, and telephone rate regulation and
in legislation concerning the Public Utilities Commission. Of particular note, the SRA successfully
negotiated/lobbied for power outage credits affecting municipal pumping stations in 2009-2014 and
providing input on LED street lighting tariffs in 2015-2016.
I’ve invited Jim Strommen, who serves as general counsel to the SRA, to give an update on the SRA and
its activities. Mr. Strommen is retiring at the end of the year.
Public Works Director Ryan Stempski and I question the value of continuing our membership in the SRA
and expect to recommend withdrawing in 2024 (June 2023 deadline to provide notice of withdrawal).
Financial Impact:
2023 membership dues for City of Hastings are $2,395
Committee Discussion:
N/A
Attachments:
N/A
James M. Strommen Fifth Street Towers 150 South Fifth Street, Suite 700 Minneapolis, MN 55402 (612) 337-9233 telephone (612) 337-9310 fax email: jstrommen@kennedy-graven.com MEMORANDUM TO: City of Hastings Mayor and City Council CC: Dan Wietecha, City Administrator
FROM: James M. Strommen, Suburban Rate Authority General Counsel DATE: October 13, 2022 RE: Suburban Rate Authority ______________________________________________________________________________
SUBURBAN RATE AUTHORITY FACTS
• Established in Current Joint Powers Form in 1975 When MPUC Created
• City of Hastings one of Original Members
• Currently has 32 Members in Suburban Twin Cities Totaling over One Million in Population (Member List Attached)
• Intervenes in Xcel Electric, Xcel Gas and CenterPoint Energy Rate Cases To Protect Cities and Their Resident Interests
• Addresses Right-of-Way Management and Franchise Issues Affecting Members Generally
• Addresses Telecommunications Issues including Cell Tower Placement, Water Tower Leases
• SRA has Won Significant Rights and Money Savings for Suburban Cities and Ratepayers:
Currently Seeking Fairer Rate Allocation Between LED and HPS Streetlighting
Customers
Obtaining Separate Xcel Energy Treatment of Municipal Pumping from General Commercial
Obtained Xcel Energy Outage Credits to Residential and Municipal Pumping Customers
Won Area Code Boundaries by Municipal Boundary
Participating in Comprehensive Right-of-Way Management Legislation and Rules
Eliminated Northwestern Bell Tier System of Local Telephone Rates Penalizing Suburban Customers
2
SUBURBAN RATE AUTHORITY MEMBER CITIES
2022
Bloomington
Brooklyn Park
Burnsville
Carver
Chanhassen
Circle Pines
Deephaven
Eden Prairie
Edina
Fridley
Golden Valley
Hastings
Hopkins
Lauderdale
Maple Grove
Maplewood
Minnetonka
Mound
Orono
Plymouth
Robbinsdale
Rogers
Roseville
St. Anthony Village
St. Louis Park
Shakopee
Shoreview
Spring Lake Park
Spring Park
Victoria
Wayzata
Woodbury