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J~ <br />Elk River <br />Municipal Utilities <br />13069 Orono Parkway • P.O. Box 430 <br />Elk River, MN 55330-0430 <br />January 4, 2008 <br />To: Elk River Municipal Utilities Commission <br />Jerry Takle <br />Jerry Gumphrey <br />Jim Tralle <br />From: Bryan Adams <br />Subject: APPA Annual Electric Rate Survey <br />Phone: 763.441.2020 <br />Fax: 763.441.8099 <br />On an annual basis APPA completes an Electric Rate Comparison. This information is derived <br />from U.S. Department of Energy form ElA-861, that all electric utilities file on an annual basis. <br />Attached is the following information for your review. <br />1) Summary of data with triangles reflecting Elk River Municipal Utilities position. <br />2) APPA data for 2006 comparisons. <br />The conclusions drawn from this analysis are the same as previous years. Our Residential and <br />Commercial rates are competitive. Our Industrial (demand) rate is not competitive and we need <br />to continue to keep downward pressure on the demand rate. <br />Last month we raised our retail rate by 7.2% which passes on only our wholesale rate increase <br />from Great River Energy. We were just informed that Connexus raised rates by 7% overall. <br />Residential rates increased 6.6% and Commercial/Industrial by 8.9%. Their residential rate will <br />be slightly less than ours. Our demand rate was 10% higher than Connexus' rate but will now be <br />8% - 9% higher. <br />