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GREAT RIVER ENERGY <br />Elk River Peaking Station May 5, Zoos <br />Project Update <br />On April 24 the Minnesota Public Utilities Commission granted a certificate of need and <br />site permit for the project. <br />A&B Welding of Elk River is selected for the Tank Upgrades contract. <br />Adolfson & Peterson of St Louis Park is selected for the building contract. Building <br />permit submittals will take place following the normal City procedures. <br />Harris Companies of St Paul is selected for the general construction contract. A&B <br />Welding of Elk River is Harris' selected subcontractor for iron work. <br />GRE and the Minnesota Pollution Control Agency (MPCA) are working together to <br />finalize the draft air permit. The air permit remains the pacing item for start of <br />construction this spring. Earliest start of construction is June 9. See separate summary <br />attached regarding the air permit. <br />In the House, the Elk River peaking plant personal property tax exemption bill has been <br />included in the House Omnibus Tax Bill. The Senate has already passed its version of <br />an Omnibus Tax Bill and it did not include the Elk River peaking plant personal property <br />tax exemption. <br />Northern Natural Gas Company has begun contacting property owners regarding <br />easements for their natural gas pipeline. <br />The project Commercial Operation Date remains May 1, 2009 <br />1 of 4 <br />