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Page 3 <br /> Regular meeting of the Elk River Municipal Utilities Commission <br /> January 12, 1999 <br /> John Dietz moved to approve the non-demand rate as follows, to be effective <br /> with the February billing. <br /> Summer Winter <br /> $0.073 $0.073 First 2500 KWh/month <br /> $0.073 $0.066 Over 2500 KWh/month <br /> George Zabee seconded the motion. Motion carried 3-0. <br /> George Zabee moved to approve the demand rate as follows, effective with <br /> the February billing. <br /> Summer Winter <br /> Demand Charge $8.50 $8.50 in KW/month <br /> Energy Charge $0.036 $0.036 in KW/month <br /> John Dietz seconded the motion. <br /> Discussion followed of the change in the demand rate, with the possibility <br /> of other options. Customer types regarding high/low peaks were scrutinized. <br /> Motion carried 2-0, with John Dietz abstaining. <br /> 5.3 Up-date on GRE/ERMU Gas Turbine Project <br /> The ERMU is proceeding with contract work to allow us to proceed more <br /> efficiently if the right equipment is found. The original units considered have <br /> become to costly. Currently other generation equipment options are being <br /> researched. <br /> 5.4 Eastern Area Expansion Funding levels for Electric and Water Expansion <br /> Pat Klaers, City Administrator appeared to explain progress by the City <br /> regarding East Elk River Public Improvement Project. It appears that the <br /> project is moving slowly forward. The funding of the shortfall for Water was <br /> considered. James Tralle questioned whether the option of creating a special <br /> WAC/SAC district could be created if funding becomes a problem. George <br /> Zabee indicates that he is in favor of some TIF financing of the water short- <br /> fall. <br />