For the last several years, the Xcel Nuclear Power Plant in Monticello has been funded largely with the outlay of capital for maintenance and site improvements and then submitting invoices to the Minnesota Public Utilities Commission for reimbursement. In many ways, it is backward of the standard way of doing business – paying out money first with the expectation of reimbursement, but not the guarantee of it.
At the Tuesday, April 10, meeting of the Wright County Board of Commissioners, Scott Johnson of Xcel Energy asked for a resolution of support for House File 3708 sponsored by Rep. Marion O’Neill (R, Maple Lake) and Senate file 3504 sponsored Sen. Andrew Matthews (R, Milaca). Johnson explained the purpose of the bill and why the State Legislature is sponsoring bills to change how business is conducted.
"This bill would provide a new tool for the Minnesota Public Utilities Commission to review and approve nuclear costs and investments that we are making or are going to make before they’re incurred," Johnson said. "This is sometimes referred to as ‘advanced determination of prudency.’ This allows the company to pursue those investments with confidence that we’re proceeding with the agreement with our regulators about the costs before we spend the money."
Typically, Xcel and other nuclear plant operators would expend money first and then seek reimbursement, effectively seeking to have the investments made justified and reimbursed by the MPUC.
In 2015, one of those investments ($600 million) wasn’t fully reimbursed and some was disallowed by the MPUC, leaving Xcel on the hook for those costs. Johnson pointed out that the bill wouldn’t be going around the MPUC. If anything, it would be bringing the MPUC more closely into the investment process.
Commissioner Darek Vetsch, who is the commissioner in the district the nuclear plant is located, said that not only he on board, but so is the city of Monticello and the Monticello Chamber of Commerce and that the proposed process makes sense given the amount of the investments and the need for assurance that the facility and the MPUC are on the same page for the validity of the costs and the assurance of reimbursement.
"I’ve gone through this and I support this resolution," Vetsch said. "The city of Monticello passed this resolution and, as recently as this morning, the Chamber of Monticello has passed a resolution supporting this bill. This is showing our support for what needs to be done to help accomplish the funding mechanisms that they need to be able to operate these nuclear plants in our area."
Commissioner Charlie Borrell expressed surprise that such practices aren’t already in place.
"I just can’t imagine that this wasn’t already out there," Borrell said. "It’s almost a deterrent the way things are now to do investment in the (power) generation facility because we might be able to get our money back for this or not."
The board unanimously approved signatures on a letter of support from the county board to be included in the document packages for both the House and Senate bills.
In other items, the board:
■ Authorized Director of Parks and Recreation Marc Mattice to move forward with discussions with a willing seller for the feasibility of adding additional land to Stanley Eddy Park outside of Annandale in South Haven Township. The investment on behalf of the county would be $400 to get an appraisal and then the county would pursue funding in the next grant cycle, which begins in January 2019.
■ Approved a consulting services agreement with Springsted Inc. to provide classification and compensation consultation services for the county. The contract is for $60,400 for professional services and a not-to-exceed figure of $1.500 for direct out-of-pocket costs. The study is scheduled to begin this month and be completed by May 31, 2019. The county received eight requests for proposals from consultation firms to perform the study.
■ By a 4-1 vote, authorized signatures on a condemnation resolution for the right-of-way acquisition on CSAH 18 for a road project scheduled for this summer. The reconstruction of CSAH 18 will involve seven land parcels in between MacIver Avenue NE and CSAH 22 that the county has been unable to reach an agreement with – forcing eminent domain proceedings to take place. Commissioner Mark Daleiden voted against the motion, citing that the parcels have different owners listed due to ambiguities and that laying the item over a week so the board is passing an accurate list would be in the county’s best interest to avoid any confusion.
■ Referred to the Tuesday, April 24, committee of the whole meeting discussion concerning a review of hiring of new employees at above 12 percent of the minimum on entry pay scale and lobbying efforts on behalf of the county.
■ Approved three new hires in the sheriff’s department – two deputies and an office technician position.
■ Referred to the April 11 personnel committee discussion of hiring a senior survey technician at above 12 percent of the minimum hiring range.
■ Approved the March 12 meeting minutes of the Wright County Parks Commission. The action items included acceptance of low bids for the Collinwood Park construction and improvement process, which has an estimated cost of approximately $250,000 and the decision to keep the public access on Moose Lake open for the summer months.