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~ne~its ~- focal Rate Setting <br />1k River l~~~~cipal ~t~lities prides Itself In having per r~libl ~t~~~, reliable <br />enough to attract lame data processing centers, while ~aaaintaini~ag co~aapetitive rates. Ire. <br />fact, out (~~ residential cu~sto~ners enjoy 4~'~~ leer electric hill tlaa~a otataex~zs ~raergY <br />custo~arers ~~~ fur coi-nm~et'cial ~uston~ers receive a l ~% lo~~er electric bill Haan <br />onnexus energy co~rnnercal customers do, fur industrial custotz~ers do have higher. <br />billy than they could. get fr~o~ !onr~exus, b~~t their l~i~est eon~cet4n is one of reliability -- <br />they a~'e w~illil~g to pay slightly rno~'e for laigla rel~ab~l~ty. This. 'as especially evident ire <br />negotiatio~as ~vitla both Target and United Health as tlacy considered where to l~~~ild their <br />ne~v eta processing centers. <br />date schedules can. be quite xaaisleadizag. ~RIU also pr~~les ltsel~' ixa pr~blislaing ate <br />updated, easy to u~ader,stand rate schedule annually. cel, on the other hand, pr~blislaes a <br />~~e rate schedr~le only once eve~~y to ~ years and continues to pass on cost itacreases <br />threugh their variable Fuel Cost charge {~~. They also add a~a Environmental <br />rniprovemerat Rider, and a Resource djustnaent Rider ~~vhich includes a oraservation <br />improvement Program l~.ider, a Mate energy Policy late Rider, a Rer~e~rable <br />~evelopn~ent Rider, a Trazas~aaission host .ecovery Rider, and a Rene~rable Energy <br />standard bider}. right~Hennepin `oop has not changed their published rate far ~~ plus <br />years, but i~astead continues to add lamer and larger power cost adjutr~aents (P~;~ each <br />year. ~'helr claim is "loop everybody e haven't cha~aged fo~lr rate f ar ~0 years" ~ <br />onnexus E~aergy lil~eise~ does not adjust then; rate ore an a~aaaual basis and also laaa~es <br />up the di~`ference ley adding PTAs. [fur philosophy is to be up front with ou~• custo~aae~'s <br />and add Pis only vvlaen they are passed on from file wholesale power sl~pplior. ITa feet,.. <br />eve try to absorb PTAs from our wholesale poorer :supplier lletaever possible ~~atlaex• Haan <br />pass them onto your cutora~ers~ This is especially evident this year because eve received. <br />Pis in four ofthe last fve talonths axed leave yet to pass tlae~aa on to our custora~ers. The <br />disadvantage to being forthright with our customers is that they may onl~r leak at the rate <br />schedule a~ad are ~a~isled tea believe ERIU` is higher than the con~petitio~~ ~ul~en i~a feet, <br />they receive a lower bill from us. Mote flee ~~~ Rate on~parison attaelaed~ <br />una~aaat`i~ing, o~ace local control is relln+qulslaed, vie leave ~aeitlaer flee ability to co~atitaue <br />maintaining. a. level ofreliblity to attract crztortaers to Elk River, laor do vve leave cotatrol <br />over flee rates and: programs e offer our er~stotr~ers. e tape ghat flee ``ot~tsidet+" offers <br />and nothing else <br />