Agenda Packets - 1997/03/24 - Laserfiche WebLink

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INFORMM2ON ONLY 145 University Avenue West, St. Paul, MN 55103-2044 1111 League of Minnesota Cities Phone: (612) 281-1200 • (800) 925-1122 Cities promoting excellence Fax: (612) 281-1299 • TDD (612) 281-1290 Electric Utility Restructuring Briefing Paper Issue synopsis/League position: Policy makers at the state and federal levels are considering ways to bring competition into the electric utility industry. In preparation for a competitive environment, the state's investor owned utilities are seeking an exemption from the personal property tax and have proposed a meter tax as a mechanism to replace revenues lost by local units of government. The League's position on restructuring is that is cautious, deliberative approach is necessary to ensure that all consumers benefit. A working group of city officials has developed a set of"Principles for Guiding Electric Utility Restructuring in Minnesota." The League opposes current proposals for exempting investor owned utilities from the personal property tax. The League Board adopted a policy on "Electric Utility Taxation" on February 20, 1997. Messages for legislators: On the overall restructuring issue, ask lawmakers to take into consideration the actual impact on rates, to ensure equitable benefits for all consumers, to protect low-income individuals and the elderly, to protect the environment and ensure that we continue to invest in renewable energy sources, to ensure that safe and uninterrupted service is provided, to ensure that cities retain the ability to manage and receive compensation for the use of public rights-of-way, to support municipalization or municipal aggregation efforts, and to involve local officials and consumers in the decision-making process. On the personal property tax exemption for investor-owned utilities, ask lawmakers to oppose the current investor owned utilities' proposal. Pending bills/status: H.F. 628/H.F. 1119, introduced by Rep. Dan McElroy (DFL-Burnsville) and Senator Steve Kelley (DFL-Hopkins) and referred to the House Regulated Industries and Energy committee and the Senate Jobs, Energy, Community Development committee, would allow cities to purchase electricity from any electric utility providing service in an assigned service area which is located wholly or partially within the city. H.F. 1298/S.F. 1268, introduced by Rep. Loren Jennings (DFL-Rush City) and Senator Steve Novak (DFL-New Brighton) and referred to the House Regulated Industries and Energy committee and the Senate Jobs. Energy and Community Development committee, would authorize utilities to elect to charge a personal property tax replacement fee instead of including 11111 -over- AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER