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JOINT MEETING OF <br />• ELK RIVER CITY COUNCIL <br />AND <br />ELK RIVER UTILITIES COMMISSION <br />July 31, 1995 <br />Distribution Construction: <br />In the last year and a half we added over $1,400,000 in new <br />property consisting of a new substation located at the old West <br />site and a major upgrade of the original East station to be ready <br />for the next capacity increase. Both stations are now on line and <br />we now have the capacity to serve our entire load without any one <br />of our stations in service. <br />In addition to our substation expenditures, we spent about $700,000 <br />for distribution lines. This was mostly in new subdivisions, <br />however some of it was used to upgrade our existing lines and <br />preventative maintenance. We had no major purchases of equipment <br />this year or last as we extended the life of some of the older <br />equipment for an additional year. We do have budgeted for two <br />trucks late this year, however we will delay them for as long as <br />possible. <br />We had no major accidents last year involving our personnel or high <br />voltage electricity'. <br />Anoka Electric Takeover of Territory: <br />Whereas we did take over some of AEC's territory last year, we did <br />not take any of their existing customers (with one small <br />exception). Next year we will not take any major areas of their <br />customers, however, we have a very good working relationship with <br />them, and if an unexpected area comes up which would be beneficial <br />to us to serve (rather than exchange later), they usually allow us <br />to just take it. They have been very cooperative. <br />Personnel• <br />We have not added any new personnel in the past year. <br />We have changed on person in the office from part time to full time <br />last year because of the load caused by the increased number of <br />customers, increased regulatory requirements, and the garbage <br />billing. This increase is the first since 1982 and just bring us <br />to the level that we were in 1980. <br />Rates• <br />We still have the lowest rates in the area. Depending on usage, we <br />are lower than NSP by around 2- 3~, Wright Hennepin Coop by 30~ and <br />AEC by about 40 (even with their .recent rate decrease). This is <br />one thing that the Commission, closely watches. <br />C7 <br />