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Electric Wholesale Rate Increase <br />Electric Retail Rate Increase $2,1000,000* <br />*The amount of wholesale and retail rate <br />changes depend upon Great River Energy's <br />final rate change. <br />Expense & depreciation budget increase <br />w/o power costs <br />15% <br />10.2% (dollar value of wholesale <br />rate increase) <br />6.7% <br />Last month we discussed the capital projects for the Electric Department. With the level of <br />capital projects at $1,824,950, the electric department is placing $502,251 into reserves which is <br />a positive but the margin of error is very small. <br />The Water Department is a different story. With the assumptions outlined above, we are <br />projected to take $135,163 out of reserves which is unwise. Out options are as follows: <br />1. Raise rates further <br />2. Ask the City to delay the street rehabilitation projects or do other areas that do not affect <br />us. This is a $180,000 water main project. <br />3. Do the scheduled street rehabilitation projects but leave the 4" mains in service and <br />upgrade or move the necessary hydrants for fire protection. <br />4. Review the $120,000 trunk main extension to complete the loop from the 193`d road <br />extension. <br />It appears that #3 above is the easiest and most cost effective. <br />