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~/ <br />Elk River <br />Municip al Utilitie s <br />13069 Orono Parkway <br />F,Ik River, MN 55330 <br />May 4, 2006 <br />To: Elk River Municipal Utilities Commission <br />Jerry Takle <br />James Tralle <br />John Dietz <br />From: Bryan Adams <br />Subject: Annual URGE Tests <br />phone: 763.441.2020 <br />Fax: 763.441.8099 <br />Ellc River Municipal Utilities operates and maintains 4 diesel generation units at our <br />power plant. These units are contracted to Great River Energy through a Power <br />Transaction Agreement at the current price of $2.75/kw/month based upon the proven <br />capacity from the annual URGE test. The current contract expires October 31, 2005 and <br />is extended on an "evergreen" basis. The attached letter reflects this year URGE test <br />results. The URGE test results have steadily increased the past few years due to more <br />maintenance and better training. Again your staff of Mike Price, Adam Freiberg, and <br />Steve Ziemer did a great job performing this URGE test. The capacity results from this <br />test will result in $346,104 in annual payments from Great River Energy. This payment <br />is a .3$ increase over last year. <br />This years URGE test results probably reflect the ultimate capacity of this 4engine <br />facility. Although each engine may fluctuate in its output the aggregate output will <br />change little or may decrease overtime. <br />