The Bismarck City Commission gave its approval to an area service agreement and franchise considerations for Capital Electric Cooperative and Montana-Dakota Utilities.

A public hearing on the items was held at Tuesday's meeting of the commission. The only testimony provided came from Capital's general manager, Lars Nygren, and MDU's Frank Morehouse.

Nygren requested approval of the service area agreement and requested two 20-year electric utility franchises for the two power companies serving Bismarck. He said that the Public Service Commission will also be asked for approval, and Bismarck's award of franchise is contingent on PSC approval.

The final approval by the PSC will bring an end to a two-year battle over electrical service that started with the Boulder Ridge subdivision, but eventually led to several other subdivision electrical service disputes. Boulder Ridge was eventually decided in favor of Capital by the state's Supreme Court.

A map delineating future services areas was provided to the commission, as well as the documents making up the agreement.

Nygren said the agreement will promote harmony between the two companies, help plan future development and provide equitable participation in providing electricity to undeveloped areas outside Bismarck. The agreement allows for the growth of the franchises as the city grows.

"The agreements also provide the parties meet regularly to adjust the lines allowing Capital and MDU to serve approximately 50 percent of the growth," Nygren said. "It has taken may hours of negotiations to achieve the goal set out by the city to renew the area service agreement."

Commissioner Steve Schwab wanted to know what would keep the two companies from again fighting over new subdivisions as they came into the city, which led to several debates in front of the Public Service Commission, district court and finally the state's Supreme Court.

"I'm concerned about another spat erupting, and what will stop the process of running up to the PSCand Supreme Court?" Schwab asked. "Things change, there are different people; what's going to keep the same things from happening?"

Nygren said he couldn't predict the future, but the area service agreement will provide guidelines on which company will serve what area. Also, the companies have agreed that they will look to the guidance of the PSC if there are concerns.

"We shouldn't be getting into a lot of disagreements pursuant to the map. If the city expands beyond what we have mapped out, we'll address that," Nygren said.

City attorney Charlie Whitman said that there will be a regular review of the map. Commissioner Sandi Tabor said she hopes the city will have a way to trigger those reviews if necessary and that the city needs to pay attention when those reviews take place.

Mayor John Warford said he was comfortable with the agreements, feeling the map is explicit on which company will provide service to a particular area.

Morehouse said that the companies were in full agreement.

"It took many hours to work through the details and I'm pleased to say the details provide for a 50/50 split of the services. We at MDU are pleased with the outcome,"Morehouse said.

Commissioner Connie Sprynczynatyk thanked the companies for the way they handled the compromise. She said she believes the periodic review was an area that all involved "fell down" and was pleased it is incorporated.

"Now that we have the process in place, we can move ahead and grow," Sprynczynatyk said.

"I'd like to thank Frank Morehouse and Lars Nygren for the leadership they and their teams have shown in coming up with an equitable agreement," Warford concluded. "It's a great way for the involved entities to show they are community-minded and that they are willing to bury their differences to come up with an agreement that will ultimately serve the citizens and the citizens of those areas that will be annexed in."

Nygren said that the concurrent 20-year franchises are needed to carry out the agreement. The commission approved both requests unanimously.

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