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these underground feeders can start in late August 2006. Due to Minnesota winters <br />completion of these feeders will be late May 2007. Upon completion of these <br />underground feeders, you will have full 14-20 MW (two 10 MW parallel feeders) of <br />capacity available to you from one source. These feeders will be provided at no cost to <br />you. Per our current policy, the owner will pay one half the cost of metering estimated to <br />be $35,000. This facility will be primary metered with a service voltage of 12.47 KV. <br />By mid year 2008 Great River Energy will have the necessary transmission line <br />capacity and Elk River Municipal Utilities will have an additional substation constructed <br />at Waco Street and County Road 35. This additional substation will provide a second <br />electrical feed. The transmission line upgrades and substation will be provided at no cost <br />to you. You will be required to pay for the cost of the 20MW capacity (two 10 MW <br />parallel feeders) underground electrical feeders from this new substation estimated to be <br />$850,000. Attached is an aerial view drawing reflecting the substation and electrical <br />feeder locations. <br />Also enclosed is the following information for your review: <br />1) Current electric and water rates <br />2) Dispersed Generation Program utilizing your on site generators <br />3) Applications for the following rebates <br />a) New construction lighting rebates <br />b) New and retrof t premium efficiency motor rebates <br />c) Adjustable speed drive rebates <br />d) HVAC rebate <br />e) Custom energy efficiency grant <br />The above five rebate programs are limited to $10,000 each. If our power supplier, Great <br />River Energy, makes more funds available, we will pass on to you the additional funds. <br />We trust the above information addresses your question, and if not, do not hesitate to <br />call. We look forward to be your partners in the successful completion and operation of <br />this project. <br />B st regard <br />,. ~~ <br />2~an Adams, P.E. <br />General Manager <br />J y Takle <br />resident <br />Elk River Municipal Utilities Commission <br />cc: File <br />