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Elk River , <br /> Municipal Utilities Phone: 763-441-2020 <br /> 13069 Orono Parkway•P.O.Box 430 Fax: 763-441-8099 <br /> Elk River,MN 55330-0430 www.elkriverutilities.com <br /> November 27,2012 <br /> Mr.Eric Fortman <br /> New Plastics Plus,Inc. <br /> 12671 Meadowvale Road, Suite C <br /> Elk River,Minnesota 55330 <br /> Re: Elk River Municipal Utilities Account with New Plastics Plus,Inc. <br /> Dear Mr. Fortman: <br /> ERMU is a municipal utility owned by the City of Elk River and operated for the <br /> benefit of its customers and the residents of Elk River. ERMU has adopted several incentive <br /> programs to help its customers reduce power costs by reducing demand when energy prices are <br /> highest. These programs are designed to pass savings achieved by ERMU and its power <br /> suppliers to customers who reduce their peak demand. If customers do not reduce their peak <br /> demand as required by these programs,there is no savings to pass on to the customers. <br /> ERMU offers two programs which could potentially assist NPP in significantly reducing <br /> its power cost. They are ERMU's Commercial Off-Peak Program and ERMU's Commercial <br /> Interruptible Load Program. <br /> The current Commercial Off-Peak Program requires participating customers to reduce <br /> peak electric demand by curtailing energy demand between 2 p.m. and 10 p.m. on weekdays to <br /> save on peak demand charges from wholesale power suppliers. NPP was enrolled in this <br /> program in early 2011,but was not able to, or chose not to;take full advantage of the program by <br /> reducing production between 2 p.m. and 10 p.m. After leaving the Off Peak Program NPP in an <br /> attempt to again lower demand charges enrolled in the Commercial Interruptible program. <br /> At the October 9th, 2012 Utility Commission meeting it was understood by the <br /> Commission, ERMU Staff, and NPP that the Commercial Interruptible Program was not a good <br /> fit for NPP. Effective for the billing month of October NPP will be removed from the <br /> Commercial Interruptible Program and be placed on the Off Peak Program. The September bill <br /> [ MILD er <br /> ' �® NATURE <br /> Lpe VI Public <br /> Y O W 9 f�ovider P O W E R E D T o $ E R V E <br /> 96 <br />