Bismarck will take role in resolving electrical territory dispute

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The city of Bismarck will take an active role in trying to resolve electrical service disputes between Montana-Dakota Utilities and Capital Electric Cooperative over developing neighborhoods.

At Tuesday's meeting the city commission assigned city attorney Charlie Whitman and city administrator Bill Wocken to work with the two utility providers in developing a petition process and schedule. This came as a result of MDU's request for the city to resolve two existing franchise disputes over Promontory Point III subdivision and Sonnet Height 1st replat.

Mayor John Warford announced before the discussion started that neither of the companies had been given adequate notice to appear and technically the commission could not ask representatives to come forward to provide testimony.

The city wants to avoid cases similar to Boulder Ridge which ended up as a two year battle involving the utilities, city, Public Service Commission, district court and Supreme Court. In the end the final court of appeal held the PSC's decision that Capital was best suited to provide service.

Early in the process, the city determined MDU should serve Boulder Ridge as it interpreted the the franchises both utilities held. This was upheld in district court, but reversed by the PSC basing its decision on the Century Code's territorial integrity act.

"I think we're all anxious for both parties to resolve any service disputes. It's the desire of the commissioners to avoid duplication of facilities and have questions over who serves where resolved before they come here," commissioner Connie Sprynczynatyk said.

Sprynczynatyk continued that she was well aware of the lawsuit over Boulder Ridge and the Supreme Court decision. But she's not sure whether the city's constitutional right to franchise was adequately addressed.

The city has asked MDU and Capital to come up with an area service agreement and discussions have been ongoing towards that effort. This year the city renewed MDU's franchise rights and it won't be long before Capital will request renewal of its franchise.

Sprynczynatyk suggested that staff enter into the process with the utilities to determine which would serve where as the city continues to grow.

"Why not leave it up to the PSC and state legislature?" Commissioner Dave Jensen questioned. "This is not just about the city of Bismarck. It's an issue in Grand Forks and a number of other cities. This is a statewide issue."

Sprynczynatyk maintained that it was the city's since it granted the franchises, one expansive (MDU) and the other limited (CEC).

"We need to ask the parties to go back to the drawing board with city staff providing assistance," Sprynczynatyk said.

Commissioner Steve Schwab said he had been following the issue also and didn't understand why the two companies cannot figure out ways to split the pie.

"That's all that has to be done here. There's enough growth for everybody," Schwab said.

Whitman pointed out that MDU had submitted the petition and the city should deal with that rather than launching off on its own process.

"We should meet with the parties to determine a process to handle petitions," Whitman said. "That may morph into an overall solution, which is what the we're sort of asking anyway. I propose we meet, develop a process and schedule and present that to the commission."

Schwab put the proposal into the form of a motion which was approved 4-0 as commissioner Sandi Tabor removed herself from the vote.

"We have two fine companies which want to provide service. We need to figure out how best to do that," Sprynczynatyk said. "I hope we can come to an agreement in the future.

(Reach reporter Gordon Weixel at 701-250-8255 or gordon.weixel@bismarcktribune.com.)

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