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What are MMTG's goals for the coming year? <br />^ First, we must complete the work on the final details of the MidAmerican <br />investments. We have asked for letters of intent to be signed by you by April 30 so <br />that we can proceed with these investments. <br />^ Second, we must continue to negotiate with Xcel to reach agreement with them on the <br />details of investment recovery for the very significant transmission projects we expect <br />in Minnesota. <br />^ Third, we must continue our participation in the CAPX 2020 process and <br />investments. <br />^ Fourth, we must make sure we represent as many municipal utilities as we can in the <br />region and we must know of your issues, so that we can educate the FERC, the IUB, <br />the MN PUC, the Illinois Commerce Commission, and our congressional delegations, <br />about the impacts of their policies on our customers. <br />^ Fifth, we must strengthen our representation at MAPP, to ensure that changes in <br />MAPP and the MRO take into account our perspective. <br />MMTG costs: At the MMTG organizing meeting on March 8, the MMTG Board of <br />Directors approved a budget of $322,300, one third of which will go for legal <br />representation, another third will go for CAPX participation, and the remaining third will <br />be used for IAMU and MMUA staff time, meeting expenses, and accounting support. <br />MMTG dues: The Board recommended a dues allocation method as follows: <br />1. Dues for utilities that are voting members of MMTG are recommended as $1,000 <br />per utility plus $335.70 per MW (based on 2002 peak). Voting members are <br />entitled to investment rights in transmission. <br />2. Dues for state associations that are voting members are recommended as $500. <br />3. Dues for non-voting, associate member power supply agencies are recommended <br />as $2,500. <br />These dues are a small fraction of the annual transmission costs you pay. For example, <br />MMTG has 14 members that are network service customers of MidAmerican. I estimated <br />that these members paid approximately $1,210,000 in network transmission costs in <br />2004. The MMTG dues for these utilities are about $51,000. MMTG's joint action efforts <br />enables you fight battles jointly that you couldn't afford to undertake on your own. <br />Approving the dues: As members of MMTG you must approve the dues allocation <br />methods. I am including a ballot for you to complete and return by Apri128, 2006. <br />Membership form: I am including a membership form for your utility to complete. If <br />you apply for voting membership, you obtain investment rights through MMTG. You <br />also obligate your utility to pay MMTG dues for the 2006-2007 fiscal year. I am asking <br />you to act on membership by Apri128, 2006. <br />Please contact me with any questions or concerns. I look forward to working with you <br />and for you this year. <br />2 <br />