6.1. ERMUSR 02-20-2007 - Laserfiche WebLink

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~f , ~~ ~ ~ MOORHEAD P U B L I C SERVICE MOORHEAD PUBLIC SERVICE 500 Center Avenue P.O. Box 779 Moorhead, MN 56561-0779 (218) 299-5400 • FAX (218) 299-5193 www.mpsutility.com FOR IMMEDIATE RELEASE January 30, 2007 DRAFT For more information, contact: Ken Norman, President, (218.233.2495) Bill Schwandt, General Manager, (2l 8.299.5404 or cell 701.238.6848) Dave Kahly, Electric Division Manager (218.299.5405) Court Commissioners Issue Award In Electric Service Territory Condemnation On January 29, 2007, the Clay County District Court appointed commissioners issued their report and award determining damages in the Moorhead Public Service (Moorhead) condemnation of certain electric service territory rights of Red River Valley Cooperative Power Association (Red River). Moorhead is pleased that the Commissioners rejected the Cooperative's proposed 33 mills per kilowatt-hour as unreasonable and a windfall. The cooperatives proposal would have resulted in an award of roughly $6.4 million. The Commissioners instead awarded 7.75 mills per kilowatt-hour, the amount of the parties' longer term settlement agreement, paid over a period of ten years as the city grows. "Although we respectfully disagree with some of the reasoning in terms of how to address future growth, Moorhead Public Service believes the ultimate result to be reasonable." said Moorhead Public Service Commission President Ken Norman. "In many court cases after the decision is made, opposing sides both walk away a bit unhappy with the results. I think that is the case here, we anticipated a smaller award and I'm sure the Cooperative expected more. I appears to be a reasonable settlement of the issue. The Moorhead Public Service Commission will be discussing this at our meeting this evening to determine what future actions we may take." Either side has an opportunity to appeal the Court appointed Commissioner's report and award to a Clay County District Court jury proceeding. -30-