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River, including in particular those areas within the Cit\- of Elk River's <br /> designated urban set-vice area, for the following reasons: • <br /> 1. As ERMU's electric service territory has grown since 1991 ER'\IL-has <br /> realized increased economies of scale which has helped reduce unit costs <br /> and improve the value of electric services provided to customers. <br /> Continued expansion will further improve these economies of scale and <br /> reduce electric costs for all citizens of the City in the future. <br /> 2. The increased customer base and load which ERMU has realized since <br /> 1991, and which would continue to build if ER'NIU's electric service <br /> territory continues to expand, has improved the City and ERMU's ability <br /> to market Elk River as a desirable location for large power users, such as <br /> data centers. <br /> 3. Having a uniform service territory for all municipal services will improve <br /> planning by the City and ERMU for future development, facilities and <br /> maintenance for water,wastewater, storm sewer and electric service <br /> throughout the City of Elk River. <br /> 4. Having ERNILU provide electric service to areas within the City which the <br /> City is promoting for economic development, particularly areas within <br /> the City currently designated for urban services,will create additional <br /> opportunities for cooperation and collaboration between the City and <br /> ERMU to promote economic development. <br /> 111 <br /> 5. Having uniform municipal services throughout the city limits enhances <br /> the ability of the City and ERMU to provide services with local control <br /> and local accountability and will cause less confusion for electric <br /> customers. <br /> 6. ERMU,being locally based and serving the bulk of the City of Elk River <br /> already,would be able to provide the expansion areas with reduced <br /> dispatch distances and reductions in response time when electric utility <br /> personnel respond to outages, fires and traffic accidents involving <br /> energized electrical utility equipment. <br /> 7. As ERMU enters the market over the next six years for a wholesale <br /> power supplier, the increased customer base and load which an <br /> expansion of ERMU's electric service territory within the City would <br /> provide would improve ERMU's marketability to a wholesale power <br /> supplier or power agency, therefore potentially reducing electric costs for <br /> citizens within the city limits of the City of Elk River. <br /> 8. Increasing ERMU's customer base and revenues would increase the <br /> annual revenue transfer which ERMU contributes to the City. <br /> • <br />