Laserfiche WebLink
Elk River t <br /> Municipal Utilities <br /> 13069 Orono Parkway phone: 763.441.2020 <br /> Elk River,MN 55330 Fax 763.441.8099 <br /> September 1, 2004 <br /> To: Elk River Municipal Utilities Commission <br /> Jerry Takle <br /> James Tralle <br /> John Dietz <br /> From: Bryan Adams <br /> Subject: Project 2005 Wholesale Electric Rate <br /> As an incentive for Great River Energy (GRE) member co-op's to extend their all <br /> requirement power and energy contracts with Great River Energy, GRE would offer a <br /> two tier rate structure. All of GRE's member co-ops did extend these contracts and GRE <br /> authorized a two tier rate structure in 2004 but was unable to secure approval from Rural <br /> Utility Service (RUS), their federal governing body. The rate structure has since been <br /> approved and will be implemented in 2005. This commission discussed the proposed two <br /> tiered rate structure last year. The attached sheet again reflects the proposed rates with an <br /> anticipated 2.69% whole electric rate increase. The details of the two tiered rate is as <br /> follows: <br /> The highest demand and energy per month for years 2001, 2002, and 2003, will <br /> establish the quantity base for the base year. Because of Elk River's fast growth, <br /> the highest of these three years will be our demand and energy for 2003. These <br /> values will be corrected for our demand customers who are interruptible (Cub <br /> Foods and Aggregate Industries). This base quantity will be fixed at a demand <br /> and energy rate. Any growth above the base quantities will be at a different <br /> demand and energy rate. The proposed rates are just that..."proposed" and will <br /> not be adopted until later in the year. <br /> The 5% Option, which is the more favorable rate will expire in 2006. <br />