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/~ <br />Elk River -=~ <br />Municipal Utilities <br />13069 Orono Parkway • P.O. Box 430 <br />Elk River, MN 55330-0430 <br />May 29, 2008 <br />To: Elk River Municipal Utilities Commission <br />Jerry Takle <br />John Dietz <br />Jerry Gumphrey <br />From: Bryan Adams <br />Subject: Annual URGE Tests <br />P)lone: 763.441.2020 <br />Fax: 763.441.8099 <br />Elk River Municipal Utilities operates and maintains 4 diesel generation units at our power plant. <br />These units are contracted to Great River Energy through a Power Transaction Agreement at the <br />current price of $2.75/kw/month based upon the proven capacity from the annual URGE test. <br />The current contract expires October 31, 2003 and is extended on an "evergreen" basis. The <br />attached letter reflects this year URGE test results. The URGE test results have steadily <br />increased the past few years due to more maintenance and better training. Again your staff of <br />Mike Price and Steve Ziemer did a great job performing this URGE test. The capacity results <br />from this test will result in $349,800 in annual payments from Great River Energy. <br />This years URGE test results probably reflect the ultimate capacity of this 4 engine facility. <br />Although each engine may fluctuate in its output the aggregate output will change little or may <br />decrease overtime. <br />