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Other costs generally not considered: <br />Feeder cost to development (4/5000) $400,000 $320/Living Unit <br />Substation capacity (4/15,000) $1,100,000 $294/Living Unit <br />In the case of Wild Flower development, revenues over time are $1220/living unit and up front <br />expenses are $1648/living unit distribution costs plus another $614/living unit in feeder and <br />substation cost. The difference of $2262 expense vs. $1220/unit is socialized in electric rates. <br />For commercial accounts, we collect 50% of the distribution expense but electric use revenue is <br />being received in a few months and not potentially years. <br />Connexus connect fees from the best we can tell, are very comparable to ours. <br />MMUA from time to time does surveys of other municipals on line extension and connect fees. <br />Attached is MMUA's 2006 study. From this survey we can conclude that our charges are more <br />aggressive than most. For a community that doesn't grow or grows very little, the connect fees <br />are insignificant. In our case, they make up a significant portion of our capital budget. If we <br />reduce the connect fees, we will need to increase electric rates. <br />