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<br />. <br /> <br />~Relianf <br />", Energ'frM <br />Minnegasco <br /> <br />Patrick Klaers <br />City Administrator <br />City of Elk River <br />P.O. Box 490 <br />Elk River, MN, 55330-0490 <br /> <br />Tracy Bridge <br />Director <br />Government <br />& Public Relations <br /> <br />BOO LaSalle Avenue <br />Minneapolis, MN 55402 <br />Voice: 612-321 -4723 <br />Fax: 612-321-5137 <br /> <br />July 6, 1999 <br /> <br />Dear Administrator Klaers: <br /> <br />I'm taking this opportunity to express Reliant Energy Minnegasco's opposition to NSP's request for a franchise <br />agreement in Elk River. Reliant Energy Minnegasco ("Minnegasco") has provided safe, reliable and affordable <br />natural gas service to the City since 1960, and is well positioned to invest additional resources to extend gas <br />service into the developing areas of the City. Minnegasco's price, investment in and commitment to serving <br />Elk River makes NSP's requested franchise unnecessary. Granting NSP a franchise will not create additional <br />benefits for the City or its residents. <br /> <br />Price: Reliant Energy Minnegasco's ("Minnegasco") residential rates for natural gas service are consistently <br />lower than NSP's. Minnegasco employees pride themselves in operating our gas delivery system safely and <br />. efficiently, allowing customers to realize the benefits of lower cost service. <br /> <br />Investment: We have made a significant financial commitment to Elk River. We have invested $4.8 million to <br />create a comprehensive natural gas delivery system. A few years ago, we upgraded this system specifically so <br />we are ready to support Elk River's future growth. In the past five years, our gas delivery system has generated <br />more than $500,000 in property taxes for Elk River, including $109,000 last year alone. <br /> <br />Commitment: Minnegasco has served the natural gas needs of Elk River for the past 39 years. We are an <br />active participant in the Chamber of Commerce, Energy City and other civic activities. We participate in Elk <br />River's safety fair and have twenty-seven employees living in the community. We recently were selected to <br />provide natural gas to the planned Trott Brook Farms development and the Commercial Asphalt facility along <br />Highway 169. These are two recent examples of our commitment to grow with the community. <br /> <br />Reliant Energy Minnegasco is proud of the cooperative, mutually beneficial relationship we have with Elk <br />River, its businesses and its residents. We look forward to continuing to serve the community well into the <br />future. A fact sheet and map ofMinnegasco's extensive infrastructure commitment in Elk River is enclosed for <br />your reVIew. <br /> <br />