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Page 2 <br />Regular meeting of the Elk River Municipal Utilities Commission <br />December 13, 2005 <br />Theresa Slominski relayed to the Commission that she has not received notice on the <br />tobacco settlement. The sales tax abatement from 2004 is still unresolved but will check later <br />this month. With the outsourcing of bills that will be in affect for the January mailing, the bills <br />will look different and also have some added features. Samples of the new bill design were <br />handed out. Steve McDonald recently did the pre-audit and everything was fine. He will be <br />back in March of 2006 for the final audit. <br />5.2 Review Wholesale Electric Rate <br />GRE's 2006 wholesale electric rate increase reflects $251,000 or a 2.51 % increase. Our <br />2006 budget required a $251,000 retail rate increase to cover the costs of the wholesale rate <br />increase. Jerry Takle reported that Connexus is looking into the possibility of "time of use <br />meters". This would be one rate for 10:00 p.m. to 2:00 p.m. and another rate for the 2:00 p.m. <br />to 10:00 p.m. time slot. The future availability of power was discussed. This wholesale rate <br />discussion was informational only, no action taken. <br />5.3 Review & Consider 2006 Electric & Water Rate <br />Due to the wholesale rate increase of approximately 2.51 % staff is recommending a <br />overall rate increase of 2.3% or 346,000. Recommendations are as follows: <br />ELECTRIC Winter Summer <br />Residential from $0.0727 from $0.0872 <br />kwh increase $0.00132 to $0.07402 to $0.08922 <br />Commercial from $0.063 from $0.0849 <br />kwh increase $0.00132 to $0.06432 to $0.08622 <br />Demand <br />Power from $8.50 from $11.25 <br />to $9.25 to $13.00 <br />Energy from $0.0418 from $0.0418 <br />to $0.0406 to $0.0406 <br />There were also some changes recommended to the other rate classes including offpeak, <br />street lights, and security lights. <br />WATER <br />15` step from $1.3 0/ 1000 gallons <br />to $1.35/1000 gallons <br />2nd step from $2.50/1000 gallons <br />to $3.00/1000 gallons <br />Bulk water rate from $0.055/200 gallons <br />to $0.60/200 gallons <br />WAC fee from $1750/unit <br />to $2000/unit <br />