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ELK RIVER MUNICIPAL UTILITIES COMMONLY USED ACRONYMS Page 7 of 15 48. LF – Load Factor –A percentage that shows customers how effectively they use electricity over an entire period in relation to their peak demand. LF is calculated by taking the actual kilowatt-hours used in a period and dividing it by the potential maximum kilowatt-hours established by their peak demand. The higher the percentage the more closely peak demand represents actual usage, thus the more effectively a customer is using electricity. 49. LM – Load Management – An opt-in program where customers allow a utility to restrict their usage of electricity during peak demand periods when the cost is high. In exchange for this, these customers typically receive a lower rate when they do use electricity. 50. LNG – Liquefied Natural Gas – Natural gas that has been cooled to a liquid state, about -260 degrees Fahrenheit, for shipping and storage. The volume of natural gas in its liquid state is about 600 times smaller than its volume in its gaseous state. This process makes it possible to transport natural gas to places pipelines do not reach and to use it as a transportation fuel. 51. LOR – Loss of Revenue – A component for compensating an electric provider for territory acquired by another electric provider. ERMU makes an annual LOR payment to Connexus for the electricity used by the customers we acquired from them. A payment is made for each of the areas acquired for ten years after the acquisition date. It is calculated based on the kwh used multiplied by a mill rate that is indexed every year. More generally, a LOR occurs when a company makes less from operations than expected due to external and internal factors. M 52. MIC – Member Information Conference – National Information Solutions Cooperative’s annual member conference. 53. Mill – Mill Rate – One tenth of one cent. This is the term used for the electric service territory loss of revenue (LOR) rate calculation which is calculated on energy sales. 54. MISO – Midcontinent Independent System Operator – An independent, not-for- profit organization that delivers safe, cost-effective electric power across 15 U.S. states and the Canadian province of Manitoba. MISO provides reliable operation of the bulk power transmission system and collaborates with all stakeholders to create cost-effective and innovative solutions for the ever-changing electric industry. MISO operates one of the world’s largest energy markets with more than $29 billion in annual gross market energy transactions. 55. MMPA – Minnesota Municipal Power Agency – An all-requirements wholesale power provider which supplies 12 Minnesota member communities with competitively priced, reliable and sustainable energy. The Agency is owned by its 221