12-10-1996 ERMU MIN - Laserfiche WebLink

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Regular meeting of the Elk River Utilities Commission December 10, 1996 Page 2 from a financial perspective . Examples were given, as well as Minnesota Statute 216B. 03, which requires that rates be just and reasonable and that rates shall not be unreasonably preferential, prejudicial or discriminatory, and Minnesota Statute 216B. 161, which allows for a temporary discount to demand charges for new or expanding manufacturing or wholesale customers who locate in one of a fixed number of area development zones . Although we are not necessarily subject to these Statutes, Mr. Adams advises that it is not good practice to deviate from the spirit of the laws . Further discussion will be held at future meetings . 5 .4 Water facilities location up-date Mr. Adams has contacted two property owners in regard to purchase of land for future water facilities. One property owner has no interest in selling his property at this time. Discussion is still in progress with ISD 728, owner of the other property. Commission will be advised of progress . 5 . 5 AEC - ERMU Contract Amendment The latest revision to the wholesale purchased power agreement was read and received by the Commission. Mr. Adams explained the agreement and ramifications of the changes . Mr. Dietz moved to have the revised Contract Amendment signed. Mr. Zabee seconded the motion. Motion carried 3-0 . 5 . 6 1997 Proposed Budget The proposed 1997 budget was presented and discussed at length. The presented budget assumes realignment of rates at this time, not generally increased or decreased. The transitional purchased power rate from Anoka Electric Cooperative was considered in the budget . No increases in the water rates were used because of the pending study. The budget was received, and will be acted upon at the January, 1997 meeting.