BEFORE THE COMMISSIONER OF THE DEPARTMENT OF PUBLIC SERVICE KRISTA L. SANDA, COMMISSIONER

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1 EXHIBIT DATE/P-4-9/ JANET SHADDIX ELLING COURT REPORTER BEFORE THE COMMISSIONER OF THE DEPARTMENT OF PUBLIC SERVICE KRISTA L. SANDA, COMMISSIONER In the Matter of the Implementation of the Conservation Merchandising Project, a new Conservation Improvement Program Project for. Northern States Power Company for PROCEDURAL HISTORY Service Date: AUG Docket No.: E002/CIP On July 25, 1991, Northern States Power Company, Electric Utility (NSP or the Company) submitted a new Conservation Improvement Program project filing, the Conservation Merchandising Project, to the Minnesota Department of Public Service (DPSv or Department) pursuant to Minn. Rules, Part On July 30, 1991, the Reviewing and Recommending Staff of the Department (Department Staff) issued a Notice of Completion of NSP's filing and accepted written comments on the Company's proposed new project through August 13, 1991, pursuant to Minn. Rules, part None were received. On August 19, 1991, Department Staff submitted Analysis Materials and a Proposed Decision to the Commissioner for her approval. NSP informed the Department that the Company would waive its comment period if the Department Staff, in its Proposed Decision, recommends approval of the project. On August 28, 1991, the Energy Resource Center (ERC) submitted comments on the Proposed Decision. A. Applicability to NSP's Proposed CIP JURISDICTION AND RECENT LEGISLATIVE ACTION Minnesota Law empowers the Commissioner of the Department of Public Service to require utilities to invest in and make expenditures on energy conservation improvements through the Conservation Improvement Program [Minn. Stat. 216B.241 (1990)]. In addition, the 1991 Minnesota Legislature significantly increased Minnesota's commitment to conservation with the passage of the 1991 Omnibus Energy Bill (Act of May 28, 1991, Chapter 235, 1991 Minn. Laws). The Omnibus Energy Bill requirements apply to all filings submitted on or after July 1, 1991.

2 Because the the p^e^f^ ep^y The newbill mandates that investor-owned electric cparating revenues trom service provided in the state cnene^ improvements, ^he Legislature providedatour-year transition period during which the utilities would increase their investments. Ataminimum^the legislation requires all utilities to increase spending by constant amounts over the next tour years^992 laas) until they reach the required spending levels in 1996 The new legislation provides that the Commissioner may require utilities to exceed these required spending levels it they will experienceacapacity deficit ot at leastloc megawatts (M^) within the next tive year period In addition, legislation provides thet the Commissionermayrequireautilityto make an energy conservation improvement wheneverthe Commissioner finds that the improvement will result in energy savings at atotal cost to the utility less than the utility's cost to produce or purchase an equivalent amount of new supply of energy Ctherrequirementsapplicabletothis filing include the instruction that^ Commissioner "shall give special consideration and encouragement to programs that bring about significant net savings through the use of energy efficient lightingb Stat. 2taB.241,5ubd.2(1991^ Further,Minnesota Rules provide that upon its own motion orthe motion ofautility or other person,the department can addaproject tea conservation improvement program before the program's termination. [Minn. Rules ] ^ Cor^^ss^a^s^ac^o^^a^n^^^oac^ V^hen making decisions regardingaproposed program chenge,the Commissioner considersamultitude of factors including: the ability of the project to achieve cost effective savings^ the ability of the project to increase the diversity of the program's participants^ the likelihood thatthe project will meet its stated goals^ and the consistencyofthe project with other public policy objectives TheCommissioner carefully considers the comments and analysis submitted by all parties to arrive at her decision. ^ E ^ ^ ^ ^E P^C^^N^ B^. ^S^s^^ac^^osa^ NSR's proposed project is designed to lower residential energy consumption by promotingthe use of energy efficient lighting products NSP intends to stimulate the local residential market for the products by marketing and discounting energy-eff^ light bulbs to 42,000 NSP customers ^he Company expects that retail outlets will satisfy repeat purchases 8 ^e^a^a^s^s^a^s^a^sa^^ro^osa Oepartment Staff's reviewofnsp'sfilingsincludedacompleteness reviews whi^^ assessedthefiling'scompliancewithlawand rule, andaproject review The project

review ioc^ed an design,co^e^e^ivenes^^ process of selecting vendors for the project and censistencywi^^ Omnibus Energy BiiL Oepartment Staff oonoiuded that the Oommissioner should approve the

3 review ioc^ed an design,co^e^e^ivenes^^ process of selecting vendors for the project and censistencywi^^ Omnibus Energy BiiL Oepartment Staff oonoiuded that the Oommissioner should approve the project because itwould provide oost effeotivesavingsto NSP's residential customers,wouldhelpstimulatethefuture sale of energy efficient lighting pr^^ the residential market, and would be consistent with the t99t Omnibus Energy Bill requirementthattheoommissionergive special consideration to energy effici^^^ lighting proposals O. Oo^^a^so^^^a^^aso^ceOa^a^ ERO supports NSP's efforts to promote the purchase of energy efficient iighting in it^ service territory EPOalsomakesanumber of suggestions to improve the design of this project Pinally,EPO states that it plans to propose an alternative project to market energy efficient-lighting in the future. C ^ ^ S S ^ N ^ ^C^N TheOommissionerispleasedto approvetheoonservation Merchandising Project as filed by Northern States Power Oompany Energy efficient lighting products have the potential to provideasignificant amount of energy savings in NSP'sresidential market, ^his project will ensure thet the new products are on the market by offering NSP residential customers the opportunity to purchase the new energy-efficient lighting products inaconvenient and inexpensive manner.^he Oommissioner reviewed the project's goals of serving 42,000 NSP customers and saving 92.7 million k^h and agree with Oepartment Staff that they are appropriate and attainable goals for the project ^he Oommissioner believes the resulting energy savings will help delay the need for new baseioad power plants and will reduce pollution emissions. Purther,theprojectwiilhelpeducatethepublicaboutthe benefits of new energy-efficient lighting products and will stimulate the market for these products for residential customers in NSP's territory. Approval of this new project will increase NSP's totally budget from $16,509,67t to $t7,a24^71,ort4a percent of NSP's 1990 gross revenues Approving this project will help ensure that NSP meets the new legislative mandate requiring investorowned utilities to spendt^percent of their gross revenues annually by the end of1995 on energy conservation. Also, approval of the project is consistent with the mandate in the 1991 Omnibus Energy Bill to give special consideration to energy savings provided by investment in energy efficient lighting EPOrecommendsanumber of project design changes to NSP's proposed project ^heoommissionerwill not require NSP to make these changes atthis time ^he Oonservation Merchandising Project,as proposed by NSP,isacosteffective project The Oommissioner will not delay implementation of this project by requiring NSP to make extensive modifications at this time Instead, NSP should implement its proposed project immediately to ensure that its customers derive benefits as quickly as possible. Nonetheless^ the Oommissioner looks forward to reviewing EPO's alternative proposal to market energy efficient lighting ^his proposal will allow ERO

4 to prove that its recommended modifications to NSP's proposal will make this type of project more cost-effective. DECISION The Commissioner approves the Conservation Merchandising Project with a 1991 budget of $1,315,000. BY DECISION OF THE COMMISSIONER ^ x^z&^y^ KRISTA L. SANDA, COMMISSIONER

5 STATE OF MINNESOTA) COUNTY OF RAMSEY ) ) ss AFFIDAVIT OF SERVICE I, Carol Nelson, being first duly sworn, deposes and says: That on the 30th day of August, 1991, She served the attached DEPARTMENT OF PUBLIC SERVICE COMMISSIONER'S FINAL DECISION REGARDING NORTHERN STATES POWER COMPANY'S CONSERVATION MERCHANDISING PROJECT. Docket Number: E002/CIP %( by depositing in the United States Mail at the City of St. Paul, a true and correct copy thereof, properly enveloped with postage prepaid X< by personal service by express mail by delivery service to all persons at the addresses indicated below or on the attached list: See Attached List Subscribed and sworn to before me this ^3$^ day of v ^, - / / SHARON L JUEN HOTARY PU1UC MINNESOTA /VW» SsSMKs

6 NSP OP Service List ZLECTRIC Jeffrey Veches MCM Enterprises 2619 Pleasant Ave S Minneapolis, MN Scott Wilensky Attorney General's Office 1100 Bremer Tower 7th Place & Minnesota Street Lorene Lehmann City of Richfield 6700 Portland Avenue South Richfield, MN West Hennepin Human Svcs 4100 Vernon Avenue South St Louis Park, MN Merlin Wilbur City of Hastings 100 Sibley Street Hastings, MN Jon Childers 410 Farm Credit Bldg 375 Jackson Street Tom Griffin Energy Resource Center 427 St Clair Avenue St Paul, MN Elmer W. Scott Metropolitan Senior Federation 1885 University Avenue St Paul, MN Larry Turner Administrative Assistant City of Northfield 801 Washington Street Northfield, MN Mark Thornsjo Northern States Power Co 414 Nicollet Mall Minneapolis, MN Mike Noble Natural Resource Corp 245 Aldrich Avenue North Suite 301 Minneapolis, MN Robert Nevitt Energy Conservatory 5158 Bloomington Ave. S. Minneapolis, MN George Crocker North American Water Office P.O.Box 174 Lake Elmo, MN Darcy A. King MPIRG 2512 Delaware Street South Minneapolis, MN Tom Olson Climate Makers, Inc North McKnight Road North St Paul, MN Robin Garcia (10 copies) Dept of Public Service 790 American Center Bldg 150 East Kellogg Blvd Richard Lancaster Public Utilities Commission 780 American Center Bldg 150 East Kellogg Blvd Joan Peterson Attorney General's Office 1100 Bremer Tower 7th Place & Minnesota Street Dennis Ahlers Attorney General's Office 340 Bremer Tower 7th Place & Minnesota Street Sheldon Strom Center for Energy and the Urban Environment 510 1st Avenue North Minneapolis, MN Sue Gunderson Self-Reliance Center 1916 Second Avenue South Minneapolis, MN Tom Smilanich 228 6th Avenue North South St Paul, MN Steve Betzler Minnesota Power 30 West Superior Street Duluth, MN Ceedy Mewszel, Mgr Energy Mgmt Programs Otter Tail Power Company 215 South Cascade Street Fergus Falls, MN Ann Bothum Peoples Natural Gas 3460 Washington Drive, #208 St Paul, MN Sue Nathan, Administrator Energy Programs Minnegasco 201 South Seventh Street Minneapolis, MN 55402

7 Rich Smith Marketing Director Energy Education & Services 600 Fairview Avenue North St Paul, MN Ray Ball Hennepin Cty Dept of Environment Mgmt 300 South 6th Street, O2200 Minneapolis, MN Anne Hunt, Exec Director St. Paul Neighborhood Energy Consortium 2429 University Avenue St Paul, MN Kimberly J. Erickson Manager, Regulatory Relations Northern States Power Company 414 Nicollet Mall Minneapolis, MN Mark Spun- District Energy St. Paul, Inc. 76 West Kellogg Boulevard

State of Minnesota Public Utilities Commission

State of Minnesota Public Utilities Commission August 13,2009 NOTICE OF COMMISSION MEETING Please note change in meeting date. PLEASE TAKE NOTICE that the items listed on the attached agenda will be heard