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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 />November 8, 2007 <br />Mr. Mike Robertson <br />City of Otsego <br />8899 NE Nashua Ave <br />Otsego, MN 55330 <br />Subject: Co Rd 39 Electric Issues <br />Dear Mike; <br />Phone: 763.441.2020 <br />Fax: 763.441.8099 <br />As we discussed recently, the Elk River Municipal Utilities is experiencing some power quality <br />and reliability issues on co Rd 39 west of Ohland Ave. to Nantucket Ave. The solution to this <br />problem is either add one overhead wire to the already two wire system or replace and upgrade <br />the overhead system with an underground system. Otsego's ordinance requires if any upgrading <br />is required to an overhead electric distribution system, that portion of the system shall be place <br />underground. We request temporary relief of this ordinance and be allowed to make the <br />temporary overhead modification for the following reasons. <br />1) The cost to make the overhead modification is $50,000. The cost to replace the overhead <br />system with an underground system is approximately $400,000. As a municipal utility, <br />the difference does not come out of corporate profits but from Otsego's and Elk River's <br />rate payers' pockets. <br />2) For reliability, underground electric distribution systems should be looped. This means if <br />an underground electric system is to be utilized, underground cable would be placed on <br />both sides of Co Rd 39 in County Road right-of--way. We know Co Rd 39 will be <br />widened in the near future. When Co Rd 39 is widened, we will be required to abandon <br />the recently placed underground system and reinstall another underground system at an <br />additional $400,000 price tag. This is not being fiscally responsible. <br />3) Last year when we replaced the electrical system underground east of this area, we were <br />unable to secure the necessary easements from landowners and had to change our design <br />at additional expenses and use Great River Energy's transmission right-of--way. In the <br />case in hand, there is no private right-of--way we can utilize and obtaining easement from <br />adjacent landowners will not happen, similar to last year. <br />