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Page 2 <br /> Regular meeting of the Elk River Municipal Utilities Commission <br /> January 12, 1999 <br /> 2c Designate Elk River Star News official newspaper for 1999 <br /> John Dietz moved to designate the Elk River Star News official newspaper <br /> of the Elk River Municipal Utilities for 1999. George Zabee seconded the <br /> motion. Motion carried 3-0. <br /> 3. *Consider Consent Agenda <br /> George Zabee questioned the amount of payment due the City of Elk River <br /> for mowing services in 1998. No further discussion of Consent Agenda items. <br /> John Dietz moved to approve the Consent Agenda as follows: <br /> 12-8-98 minutes <br /> December Check Register <br /> Abbreviated Financials <br /> George Zabee seconded the motion. Motion carried 3-0. <br /> 5.1 Review and consider GRE/Connexus Wholesale Power Rate to ERMU <br /> Bryan Adams reported to the Commission on the progress of the wholesale power <br /> rate negotiations. Discussion of the Demand costs were questioned and <br /> responded to. An overall 7% +/- wholesale rate decrease can be expected from <br /> GRE/Connexus for 1999. Wholesale rates will be expected to start rising in the <br /> following year. In general, ERMU will receive the same rates, programs and <br /> rebates, except capitol credits, that Connexus Energy receives from GRE on the <br /> same time frame. This means that rates and programs will change annually, <br /> and ERMU will no longer be required to re-negotiate every other year through <br /> FERC. Further, Bryan Adams is directed by Commission to return to Connexus <br /> with the request for receiving all programs. <br /> 5.2 Review and consider changes to Demand and Non-Demand Meter Rate <br /> Commission reviewed the present electrical rates, as well as comparing them to <br /> Connexus and Wright-Hennepin rates. It appears that no change in the residential <br /> rates is indicated at this time. However, it appears that a decrease for Non- <br /> Demand would be appropriate at this time. Discussion of the Demand Rate <br /> was centered on the demand rather than the energy component. The <br /> recommended rate change will be cash neutral since the demand will be off-set by <br /> the decrease in energy. Further discussion of options for demand customers, <br /> especially those with high low-load factors followed. James Tralle questions <br /> whether or not customers understand the ramifications of a low-load factor. <br />