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<br />Elk River City Council Meeting <br />July31,1995 <br /> <br />Page 2 <br /> <br />...---......--.......---...- <br /> <br />e <br /> <br />to upgrade the existing lines. and on preventative maintenance. The Utilities had <br />no major purchase of equipment this year or last year as the Commission <br />extended the life of some of the older equipment for an additional year. The <br />Utilities have budgeted two trucks for late this year. however. the Commission will <br />delay them for as long as possible. <br /> <br />There were no major accidents last year involving personnel or high voltage <br />electricity. <br /> <br />Anoka Electric Takeov~rof Territorv <br /> <br />The Utilities did take over some of AEC's territory last year. but did not take any of <br />AEC's existing customers (with one small exception). Next year the Utilities will not <br />take any major areas of AEC's cvstomers, however, the Utilities does have a very <br />good working relationship with AEC, and. if an unexpected area comes up which <br />would be beneficial for the Utilities to serve (rather than exchange later). AEC <br />vsually will allow the Utilities to toke it. They have been very cooperative. <br /> <br />Personnel <br /> <br />No new personnel were added in the past year. <br /> <br />e <br /> <br />The Utilities changed one person in the office from part time to fvll time last year <br />becavse of the load caused by the increased number of customers, increased <br />regvlatory requirements. and the garbage billing. This increase is the first since <br />1982 and just bring them to the level that they were in 1980. <br /> <br />Rates <br /> <br />The Utilities sUII have the lowest rates in the area. Depending on vsage, the <br />Utilities are lower than NSP by around 2-3 percent. Wright Hennepin Coop by 30 <br />percent. and AEC by about 4 percent (even with their recent rate decrease). <br />This is one thing that the Commission closely watches. <br /> <br />Generation <br /> <br />The Commissioners recently avthorized a feasibility study to determine if the <br />Utilities shovld enter into 0 long term generation project. The preliminary stvdy is <br />finished and is subject to further review. The feasibility of this project depends on <br />the cooperation of UPA and AEC to restrvctvre the contract. however the Utilities <br />do not see that as 0 problem. Presently. the Commission purchases 011 of its <br />energy. However, it appears that with the present long term natural gas rates <br />now available, and the new machine efficiencies. that the Utilities may be better <br />off to bvild new generation. If the project proves feasible, the Utilities will spend <br />around $18.000.000. The Commission will know more in a couple of months when <br />it gets some operating statistics in for the operation of the unit in Hvtchinson. This <br />could involve building a 30 Megawatt unit near the site of our west substation. <br />also near the passage of a high pressure natural gas pipeline. <br /> <br />e <br /> <br />Assessment of Charges for Underaround Electricity & Street liohts <br /> <br />Presently. the Utilities charge the developers for the cost of underground <br />installation of electrical lines and street lights. This involves letters of credit. and <br />