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the competition. Our dispersed generation rate discussed in agenda item 5.3 will provide <br />some rate relief for customers desiring to participate. <br />c) The street light and security light rates are increased to reflect the average 6 mil. <br />wholesale rate increase. This increase has little revenue effect because most of the <br />increase is in street lights which are donated to the city. <br />d) The water increase is approximately a 6% increase. The second step ($3.50/1,000 gal) is <br />designed to discourage excessive lawn sprinkling. In the past, we charged $20.00 to <br />install and remove irrigation meters (1 ''/z"). To alleviate the extra billing it is easier to <br />increase the monthly fee from $12.00 to $17.00. <br />e) We are proposing a modest increase for our security system rates for the first time in 17 <br />years. We will still be $3 to $10/month below the competition. We are also proposing <br />the following language to the security system contracts to encourage timely payments. <br />If YOUfail to make any payments due in the time allowed for system costs, monitoring, <br />or lease charges, penalties will be assessed and any unpaid balances will be subject to <br />utility disconnection. (If you are an annually billed customer, ERNIU may change your <br />billing cycle to monthly in the case of payment delinquency and any special rates being <br />acquired for annual billing will be forfeited). If YOU are not within ERMU utility service <br />area the disconnection addendum does not apply. <br />As in the past, we will place ads in the Star News informing our customers of these electric and <br />water rate changes. Our security customers will receive the letter included in the attachments. <br />