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substation there to serve the area. He said the Willow Creek substation can e carry 20 megawatts, while the Bertelsen could carry 33. Neither is fully loaded, he said, so they can accommodate growth. He said the CH2M Hill load forecast for the new area is at 30 megawatts, and the proposed LEC substation is 2.5 megawatts. Mr. Holmer said he received a letter from Ed Fadeley which stated that since 1984, when service was extended to Willow Creek, there has been one outage in Willow Creek. In contrast, there has been multiple service interruptions at LEC's headquarter, which is within EWEB's west electric area. LEC currently has a substation 4/10 of a mile from the Willow Creek industrial park and is designing one directly adjacent. Mr. Holmer asked if these facts will change the comparison. Mr. Beeson said the CH2M Hill plan for LEC service in this area initially had construction on the substation in the park, but it was the installation on a single transformer, not including the installation of a second backup transformer. Mr. Beeson said EWEB keeps detailed outage records and can match reliability with virtually anybody. Ms. Power said that of the two outages at LEC's headquarters, one was planned for during the construction of the building, and the second was a 25 minute problem this spring. Ms. Ehrman asked if it is a normal practice for potential customers to pay for the substation. Mr. Beeson said costs for substations are built into the rate structure. Mayor Obie said that LEC has subsequently changed its policy and they have had the opportunity ~o provide a substation for five years now and have not done so. He said residents have paid over $12 million for sewer lines and transportation lines and EWES can serve immediately and protect e these City investments. Ms. Bascom asked if the City gets an in-lieu-of-taxes payment if LEC provides service, She said this would help offset the costs other urban dwellers assume. Mr~ Gleason said the City does not get a franchise fee from LEC. Mayor Obie said the City has the authority to franchise. Mr. Holmer asked if the City gets REA benefits as EWES goes out into the rural areas. Ms. Power said the City gets no benefits from the Rural Elec- tric Act. Ms. Schue asked why the City does not charge LEC for easements like the use of poles and streets. Mr, Gleason said he thinks the City does not, but said it may not be consistent with the City Charter. Ms. Schue asked if it would be possible to charge a service fee rather than granting a franchise. Mr. Gleason said the City can. Mr. Miller questioned the legal ramifications. Mr. Stan Long of the City Attorney's Office said there is statutory authority for the City to impose charges to franchise the use of the streets and to condemn the property, but challenges to the exercise of that authority can be made. He said the City Council must decide whether to take action, The City has the authority to take the property by eminent domain proceedings, if necessary. The statutory framework, based on state law, is predicated on the assumption that that is how the City would change allocation to utilities as more property comes into e MINUTES--City Council Work Session August 8, 1988 Page 6