While Bismarck is an integral participant in the dispute over electrical service to Boulder Ridge, there have been few out-of-pocket legal expenses.

At Tuesday's city commission meeting, commissioner Dave Jensen asked what the costs have been to the city in the long running dispute between Montana-Dakota Utilities and Capital Electric Cooperative over which company should serve Boulder Ridge subdivision.

The case also involves the Public Service Commission and was recently decided by the North Dakota Supreme Court only to have the city and MDU request a rehearing.

"Other than the cost of my time, which is included at any rate, there is actually no out of pocket cost in this whole issue," city attorney Charlie Whitman replied. "Our actual cost of defense was paid for by our insurance carrier."

The city's involvement in the dispute revolves around its franchise authority and the commission's decision awarding the service rights to MDU. This decision was upheld by the district court but reversed by the Supreme Court.

While MDU went to the city for a determination on which franchise should serve the subdivision, Capital Electric turned to the PSC for a decision which is based on state statute's Territorial Integrity Act. The Supreme Court held for the PSC decision and didn't attempt to work out the conflict between a city's right to award and regulate franchises versus the Century Code's TIA.

The city was represented in legal proceedings by Whitman and an attorney selected by the North Dakota Insurance Reserve, which is a private, nonprofit organization established by the state's political subdivisions.

Jensen questioned how much the Insurance Reserve spent on the city's behalf and whether it will effect the city's rates. The commissioner thinks the records should be available under the state's open records laws.

Whitman said he was willing to inquire on the costs, but believes the Insurance Reserve is an exception to the law.

"It's possible our rates could go up, but other than this particular issue we've had very few claims," Whitman said. "It's hard to say if they will assign influence to one particular claim. If there is an increase we probably won't know if it is attributable to this."

Whitman is concerned that the issues resulting in the Boulder Ridge dispute will continue to be a problem the city runs into. He suggested that one of the utilities may be back to ask the commission for a franchise interpretation on another subdivision. The PSC also is considering complaints from Capital Electric on two other Bismarck subdivisions, Promontory Point IIIand Sonnet Heights.

Whitman believes the city does have jurisdiction in the matter, despite the Supreme Court's decision allowing the PSC to make a determination that there is a duplication of services and which utility is better able to serve.

The city has filed for a rehearing of the Supreme Court decision and the PSC is holding off hearing Capital's complaints until the high court gives an indication on what it will do with the rehearing request.

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