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PUBLIC UTILITIES COMMISSION MEETING
Tuesday, February 24, 1998; 9:00 A.M.
State Capitol Building, Room 430
Pierre, South Dakota

NOTE: If you wish to join this meeting by conference call, please contact the Commission at 605- 773-3201 by 5:00 p.m. on Monday, February 23, 1998.

NOTE: Notice is further given to persons with disabilities that this Commission meeting is being held in a physically accessible place. If you have special needs, please notify the Commission and we will make all necessary arrangements.

Electric

1. EL97-020 IN THE MATTER OF THE APPLICATION OF THE CITY OF VERMILLION FOR DETERMINATION OF PURCHASE PRICE OF ELECTRIC FACILITIES IN ANNEXED AREAS. (Staff Analyst: Bob Knadle. Staff Attorney: Karen Cremer.)

On January 8, 1998, the Public Utilities Commission (Commission) received an application from the City of Vermillion, SD, (City) requesting that the Commission fix a time for a hearing on a Motion for Order to Show Cause. City also filed an Affidavit in Support of Order to Show Cause, Order to Show Cause, and Memorandum of Authorities in Support of Applicant's Motion to Show Cause. The affidavit stated that on November 20, 1995, the City annexed a tract of real property that Clay-Union Electric Cooperative (Clay-Union) currently has service rights to and has installed electrical facilities that serve one customer therein; that on March 11, 1996, the City annexed a tract of real property that Clay-Union currently has service rights to and has installed underground electric facilities that serve three customers therein; and, that on April 12, 1996, the City annexed a tract of real property that Clay- Union currently has service rights to and has installed electrical facilities along the East and South sides thereof but serves no consumers therein. On October 21, 1996, the City adopted a resolution to exercise its privilege to purchase Clay-Union's utility properties and services rights within each of the three above-mentioned annexed areas. On October 30, 1996, City served its written offer to purchase Clay-Union's utility properties on Clay-Union. On May 29, 1997, Clay-Union acknowledged City's offer and informed City that it would not consent to the conditions set forth in the October 30, 1996, Notice of Intent. City alleges that since October 30, 1996, Clay-Union has refused to proceed to act in any manner directed to determining the amount to which it is entitled pursuant to SDCL 49-34A- 50.

TODAY, should the Commission issue an order to Show Cause directing Clay-Union to appear before the Commission and demonstrate why certain remedies contained in the Motion for Order to Show Cause as filed in this docket should not be imposed upon Clay-Union?

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Sue Cichos
Business Manager
February 23, 1998