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SCHEDULE 2 -WHOLESALE SUPPLY RATES <br />Wholesale Supply Rates: A "non -generating utility" must list the rates at which it <br />purchases energy and capacity. Ifthe utility has more than one wholesale supplier, the <br />rates listed are of that supplier from which purchases may first be avoided. <br />Utility purchases energy and capacity from Minnesota Municipal Power Agency. Last <br />year, the average energy rate paid by Utility was $0.02204 per kilowatt-hour. The average <br />capacity rate paid by Utility was $0.05890 per kilowatt-hour. <br />These rates are used to calculate Utility's "avoided costs" for purposes of calculating <br />compensation to customers whose Qualifying Facilities are not eligible for compensation <br />at Utility's average retail utility energy rate or who elect compensation at another rate. <br />