Alice Pickering
Linwood Area Reporter

Further information about the Minnesota Public Utilities Commission request for Xcel Energy to extend a natural gas main to the Boettcher Farm Preserve housing development was presented to the Linwood Town Board on June 27.

Initially, the company refused to extend a gas utility main to the Boettcher Farm Preserve, while providing service to other developments in the area.

Developer Steve Strandlund had offered to pay the entire cost to extend the gas main.

The distance is about 300 feet. No other gas company would extend service because Xcel lines effectively cut off the area from other utility companies.

Among the comments in the report, was one which said that while Xcel had applied its criteria correctly to this project and others, it did not communicate the criteria well.

The first recommendation is that Xcel use a modified new area surcharge (NAS) tariff to extend service to the development. A tariff is a rule about the fee for each of the services provided and varies for commercial and residential service.

These are approved by the Minnesota Public Utilities Commission. Information on the Xcel Energy web-site shows the residential main extension policy effective December 2005.

Strandlund made his initial request for service in early 2005.

If it is economically feasible, based upon distance, pipe size, and other factors, to provide gas service a project is deemed cost-justified. If a project is found by the formula, not to be economically feasible for the company, it is non-cost justified.

A second recommendation is that Xcel change and keep updated the tariff language that specifies criteria it proposes to use to determine conditions where it would extend service to non-cost justified projects.

The company must also submit a comprehensive plan about how criteria for accepting or rejecting such projects are to be communicated.

Finally, the company is required to submit a revised or new tariff language about NAS extensions to identify how the company may use the provision to serve development projects that are non-cost justified and that may require an up front lump payment in a new area.

This is what Strandlund proposed to do to get the company to extend the gas main to the development.

Strandlundís cost for the extension is $78,000, an increase of $18,000 over the initial estimate.

According to Strandlund, Xcel wants all customers hooked up to gas service in 90 days, and must use gas for heating and water heaters.

Not all homes are built yet, and some residents had to make decisions about appliances based on what was available service at the time they ordered them.

For example, some may be using off-peak electric water heaters.

Review of the tariff information revealed only those currently in effect and which will apply to Boettcher Farm Preserver.

Earlier information was not readily available.

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