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Page 3 <br /> Regular meeting of the Elk River Municipal Utilities Commission <br /> October 11,2005 <br /> We are currently upgrading the West Substation to meet our normal system growth along <br /> with possibly supplying Target Data Center. The transformer for this project was purchased <br /> last month. Station 14 substation upgrade was originally scheduled for the 2010 time frame <br /> but was moved up to satisfy Targets initial request for two feeds. Now that Target only <br /> requests one feed,staff is still recommending we proceed with Station 14 upgrade being Great <br /> River Energy is allowing it. Approximate cost of this project is$800,000. Staff is also <br /> recommending the new Target feeder will be served by this new Station 14 substation. <br /> Motion by John Dietz to go ahead with the Station 14 upgrade. James Tralle seconded the <br /> motion. Motion carried 3-0. <br /> 5.5 Review CIP Budget <br /> Minnesota statutes require municipal utilities to spend a minimum of 1.5%of previous <br /> years gross electric revenues on conservation improvement programs(CIP). For 2006, 1.5% <br /> of 2005 gross electric revenues are approximately$208,500,however, $90,750 will be <br /> received from Great River Energy. The actual ERMU spenditure for the CIP program will be <br /> approximately$120,000. <br /> 5.6 Review GRE Wholesale Electric Rate <br /> Commissioner and staff reviewed preliminary rates for 2006 from Great River Energy <br /> which are increasing by approximately 2.54%. Staff is projecting a 6%increase in demand <br /> and a 5.5%increase in energy for 2006 over 2005,which equates to a$252,951 increase using <br /> the 2005 rates with 2006 consumption. <br /> 5.7 Review& Consider Bids for Electric Line Truck <br /> At the September Elk River Municipal Utilities Commission meeting,we discussed the <br /> need to trade in and replace a 1996 gas fueled Digger/Derrick electric line truck. <br /> Specifications were drafted and bids were received on October 4,2005. <br /> Motion by James Tralle to award the Digger/Derrick Electric Line Truck to Altec Industries, <br /> the lowest responsive bidder. John Dietz seconded the motion. Motion carried 3-0. <br />