What is electric service territory?
In 1974, the Minnesota Legislature adopted assigned geographic service territories for each electric utility through the Minnesota Electric Utility Service Area Act. Each utility has the exclusive responsibility to provide electric service within its assigned territory.
What is the Princeton Public Utilities (“PPU”) Commission’s role?
The PPU Commission is the governing body for electric and water service within the City of Princeton and PPU’s assigned service territory. It sets electric and water utility rates and policies. The PPU Commission is responsible for the electrical generation plant, electrical distribution system, water production, and the water distribution system. Princeton Public Utilities was first established in 1911. More background information is available at https://princetonutilities.com/about-us/.
What is the PPU Commission’s mission?
The mission of Princeton Public Utilities is to provide our customers with exceptional electric and water services in an efficient and economical manner and to provide our employees a challenging and rewarding work experience.
How can service territory change?
The Minnesota Legislature recognized that the boundaries of cities may change over time and upheld cities’ authority to expand the utilities’ service area. A municipal utility may serve all of the customers within its service area and may choose to take over service territory from another utility operating within its borders. Compensation to the utility that formerly served an area must be paid and the amount is determined by law.
What has the PPU Commission authorized?
The Commission authorized PPU staff to explore a transfer of service territory for the Princeton Industrial Park, which is within the city limits but currently served by another utility. The Commission must approve any agreement for compensation. If the parties are unable to reach an agreement, the Commission must approve litigation to determine the compensation.
Why is PPU considering a transfer of service territory?
PPU provides reliable service to the vast majority of electric and water customers within the city limits. The Commission is interested in serving all customers within the city for continuity of service and to grow with the city. In 2023, PPU engaged a consultant to study the financial feasibility of transferring service territory to PPU for the Princeton Industrial Park. The study concluded that this transfer was economically feasible for PPU.
What is the process to transfer service territory?
Utilities may either agree to compensation for a transfer of service territory or the compensation may be determined through litigation. Litigation may include either an administrative trial ordered by the Minnesota Public Utilities Commission or through a district court process. PPU staff has reached out to attempt to negotiate compensation for the Princeton Industrial Park service territory.
How will a transfer affect my rates?
It is premature to determine any rate impacts. The parties are in the negotiating process, and no final determinations have been made. The PPU Commission has the ultimate authority to set rates for PPU customers.
How may I contact the Commission?
The Commission holds regular meetings, typically the fourth Wednesday of each month at 1:00 P.M., at the Mille Lacs Historical Society Amdall Room 101, 10th Avenue South, Princeton, MN 55371. Correspondence may be directed to Keith Butcher, General Manager, Princeton Public Utilities, 907 1st Street, Princeton MN 55371, kbutcher@princetonutilities.com,