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In July 2000, the commission <br /> authorized the acquisition of <br /> land for a new substation and <br /> Well No. 7 to keep step with <br /> expansion in east Elk River. It <br /> turned out, however, that the , <br /> land purchased for the well was <br /> in a flood plain and was I <br /> ' rt <br /> therefore too unstable to <br /> support the weight of a water <br /> 4: <br /> tower. The commission needed <br /> to find a new site. The city park , <br /> was the least expensive option, <br /> but Jim Tralle,vice chair of the <br /> Commission, felt that it was not , <br /> a politically acceptable <br /> location. In the end, the project <br /> exceeded the original budget by <br /> $224,000. At this same time, Filter at Well No. 7 Building <br /> (Elk River Municipal Utilities) <br /> Elk River was expanding to the <br /> north, and in August 2000, <br /> ERMU purchased a site for <br /> another substation.115 <br /> In 2004, ERMU's cost for wholesale power rose by 8 percent. To cover this increase, ERMU <br /> levied a $7 per month electric service charge. It also increased water rates. This has the added <br /> benefit of discouraging excessive lawn watering.116 <br /> ERMU continued to expand its service area in 2004 and added 104 new customers through <br /> territory transfers. Electric service also grew to include several more developments, including <br /> Woodland Hills, Twin Lake Estates, Elk Ridge Center, Prairie Oaks,Woods of Hillside Fourth, <br /> Trott Brook Crossings, and Trott Brook Farms Nine and Ten. To serve these new customers, 570 <br /> electric meters were added to the system and the amount of purchased electricity increased by 4 <br /> percent. In a 2004 rate survey, ERMU was determined to be"very comparable" to similar <br /> utilities.117 <br /> In its 2004 annual report, ERMU set goals for the coming year. These included continuing to <br /> plan for and predict future physical and financial needs, exploring different strategies to offset <br /> rate increases through GRE and Connexus Energy (formerly AEC), improving marketing efforts <br /> for conservation programs and security systems, and supporting new sustainability initiatives.118 <br /> 115 Elk River Municipal Utilities Commission Minutes,July 11 and August 8,2000,and January 16,2001. <br /> 16 Minnesota Municipal Utilities Association, The Resource,February 2004. <br /> 117 ERMU,"Annual Report,"2004. <br /> 118 ERMU,"Annual Report,"2004. <br /> 31 <br />