Co-op files complaint against MDU

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A turf struggle between a rural electric cooperative and Montana-Dakota Utilities Co. has begun another round, with the state Public Service Commission playing referee.

The commission on Wednesday accepted a complaint from Bismarck-based Capital Electric Cooperative, which serves large chunks of the city, in which the cooperative argued it is the rightful electric provider in a new housing subdivision.

Commissioner Susan Wefald said the commission will review the case. "Now, the next step will be to wait for MDU's response, where we'll have a chance to hear what they have to say about this complaint," Wefald said.

Montana-Dakota Utilities Co. will resist the complaint, spokesman Dan Sharp said. MDU, which also is based in Bismarck, has a general franchise to provide electric service in the city, Sharp said.

"We have not only the right, but the responsibility, to run electric infrastructure to that area," Sharp said.

The subdivision, which is being developed, is called Promontory Point III. It is in northwestern Bismarck near the Missouri River.

Capital Electric's complaint says MDU is interfering in its territory, and causing wasteful duplication by extending distribution lines to the subdivision.

"Capital is best able to serve the Promontory Point III subdivision economically, due to the nature and extent of its investment in plant, facilities, framework and system," says the complaint filed by Capital's attorney, Carol Larson of Minot.

The complaint asks the Public Service Commission to stop MDU from extending distribution lines into the subdivision and to remove equipment that has already been installed.

Rural electric cooperatives and North Dakota's three stockholder-owned utilities - MDU, Otter Tail Power Co. and Xcel Energy - have fought in the Legislature over a state law called the Territorial Integrity Act, which governs electric service in rural territory and the outlying areas of cities.

The stockholder-owned companies argue that cooperatives are unfairly constraining their growth by staking out territory on the outskirts of cities. However, the Legislature has declined to change the law.

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