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MINNESOTA MUNICIPAL UTILITIES ASSOCIATION <br />2004 RATE SURVEY RESULTS <br />Assignments of the members to groups is an attempt to achieve more clearly valid comparisons. Rates <br />between municipals reflect geographic and other local values which, in most circumstances, are <br />unavoidable or reflect reasonable local decisions. Therefore, use of these rate comparisons should <br />reflect care and analysis. <br />GROUP 1: <br />Those municipals in the northern one-third of the state that do not have WAPA allocations. They are <br />generally winter peaking. <br />GROUP 2: <br />Those municipals which have federal hydro power available to them. It must be noted that some have <br />more hydro power available than others and that the mix of supplemental resources available to them <br />will vary. <br />GROUP 3: <br />Constitutes the remaining municipals in the state including Elk River. <br />Rate Survey Results are based upon the following: <br />» Rates are tabulated for the month of November 2003. <br />» Fuel/power cost adjustments are included. <br />» Monthly base charges are included. <br />» Sales taxis not included. <br />» Large Commercial and Industrial rates are calculated for three phase <br />metering on secondary. <br />In conclusion, Elk River's rates are very comparable to all group statistics and we tend to be lower than <br />group 3 municipals which are our counterparts in the wholesale arena with no Western Area Power <br />Association (WAPA) power allocation. The triangle symbol on the following spread sheet reflects Elk <br />River Municipal Utilities rate position in comparison to 15C quartile, average, and 3`d quartile. <br />