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Ji <br />Elk River -~ <br />Municipal Utilities <br />13069 Orono Parkway • PO. Box 430 <br />Elk River, MN 55330-0430 <br />August 4, 2008 <br />To: Elk River Municipal Utilities Commission <br />Jerry Takle <br />John Dietz <br />Jerry Gumphrey <br />From: Bryan Adams <br />Subject: United Health Group Data Center <br />Phone: 763.441.2020 <br />Fax: 763.441.8099 <br />Starting on Saturday, July 26, 2008, United Health Group started their final testing and was <br />utilizing approximately 9.3 MW/hour. Part of this testing is to run their onsite generation. This <br />testing concluded approximately Friday, August 2, 2008. <br />Because this week was hot and humid, GRE was interrupting their interruptible customers all <br />week and declaring these days critical peak pricing. Critical peak pricing means our purchased <br />energy price from GRE increases from $0.04406 to $0.09535. By UHG staying on our system <br />during GRE's system peak, it would have cost us approximately $165,000 in demand costs and <br />$2300/day in critical peak pricing. This savings is approximately 10% of our monthly power <br />bill. As a result of these economics, we ask UHG to utilize their generators between 4:00 p.m. <br />and 10:00 p.m. for the entire week as long as they were scheduled to run them anyway. They <br />were gracious enough to comply with our wishes. Attached is our system load curve for Monday <br />showing the load reduction. Apparently some of the neighbors around UHG became upset due <br />to the additional noise of the engine/generators. I do not know how to resolve this sound issue. <br />Apparently the noise levels at the property are within stated limits. <br />