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west <br />icipal <br />nsmission <br />roup <br />MMTG update June 9, 2006 <br />First, thank you for your continuing membership in support of MMTG. Our activities <br />have shifted now from fighting for transmission ownership to implementing transmission <br />ownership - in both the MidAmerican and Xcel systems, and on a large scale, in CAPX <br />2020. I'll start with MidAmerican as those agreements seem furthest along. <br />MidAmerican upgrades: FERC recently approved MEC's filing for the Quad Cities <br />West upgrades. At the same time, we have received Letters of Intent to Invest in <br />MidAmerican facilities from a number of municipal utilities, at around 260 MW of <br />interest, and there may be a couple of additional utilities interested in investing. We have <br />not yet been notified by MEC about the timing of our investment. We also have <br />agreements from all the MEC network customers to have the Iowa Public Power Agency <br />act as agent for them for the purposes of these investments. I want to thank each of these <br />utilities for taking this step. We anticipate that there will yet be more paperwork from <br />IPPA for these investments. Allen Bonderman is working on this with Duane Armstead <br />and Lance Coppock. <br />At the same time that we are working on these investments, MidAmerican is moving <br />ahead with its contractor, TranServe, which will be its Independent Transmission <br />Coordinator. MEC has scheduled a meeting with us for July 18, in the afternoon, in <br />Ames. I have sent a separate notice of this meeting to all the MEC network service <br />customers, and to the MMTG operating committee. If you are interested in attending this <br />meeting, please let me know. <br />Xcel Energy: We have been meeting with Xcel representatives on several issues. My <br />biggest goal this year is to get Xcel to the same point we reached with MEC -that is a <br />broad agreement on how municipal joint ownership of transmission will be treated, and <br />how municipals can recover their investment with an appropriate margin. On top of that, <br />individual cities have specific transmission issues with Xcel, and those need to be solved. <br />Agreement with Xcel on municipal ownership will underpin our CAPX investments. <br />First, we are grateful that the city of Glencoe MN has been willing to serve as our <br />example of transmission cost recovery. Glencoe is about to put in service a 115 kV <br />upgrade. Paul Reising has developed Annual Transmission Revenue Requirements <br />calculations for Glencoe, and sent these to Xcel. We are now discussing the approach <br />with Xcel. <br />Secondly, we have started working with an Xcel transmission planner (Walt Grivna) to <br />develop and review plans for transmission upgrades to serve the City of New Ulm. This <br />MMTG c/o IAMU 1735 NE 70th Avenue, Ankeny Iowa 50021 Phone: 515/289-1999; <br />FAX 515/289-2499; Anne Kimber email: akimber@iamu.org <br />