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Generation• <br />• The Commissioners recently authorized a feasability study to <br />determine if we should enter into a long term generation project. <br />The preliminary study is finished and is subject to further review. <br />The feasability of this project depends on the cooperation of UPA <br />and AEC to restructure our contract, however we do not see that as <br />a problem. Presently, we purchase all of our energy, however it <br />appears that, with the present long term natural gas rates now <br />available and the new machine efficiencies, that we may be better <br />off to build new generation. If the project proves feasable, we <br />will spend around $18,000,000 (possibly more). We will know more <br />in a couple of months when we get some operating statistics in on <br />the operation of the unit in Hutchinson. This could involve <br />building a 30 Megawatt unit near the site of our West Substation, <br />also near the passage of a High Pressure natural gas pipeline. <br />Assessment of Charaes for Underground Electricity & St. Liahts: <br />Presently, we charge the developers for the cost of underground <br />installation of electricital lines and street lights. This <br />involves letters of credit, and many other arrangements. It has <br />occured to us that maybe it could be handled the same way that <br />sewer and water are handled in new subdivisions. <br />Street Lights on the Orono Bridge: <br />Material has been ordered and will be here in about six weeks. It <br />will take some time for installation after that - should be <br />• completed by late fall. <br />Gary Street Water Project: <br />The well and treatment plant are completed and in service. The <br />Water Tower is going to be painted next week, however the piping to <br />fill it is not yet completed nor have the controls been checked <br />out. <br />Hillside Water Project: <br />This 500,000 gallon tower in Hillside Addition has been completed <br />and filled. The well is finished and accepted, however the <br />treatment plant is not yet completed. Hopefully it will be in <br />service by Winter time. As of this time only the footings have. <br />been poured. <br />Water Capacity Problems: <br />During this past June when it was extremely dry, we had one day <br />when the pumps ran 24 hours and we actually lost capacity in the <br />Water Towers. This brought us to the realization that we need to <br />have a system in place to affect a sprinkling ban or some other <br />form of usage curtailment. That is why the Commission asked the <br />Council to pass an ordinance similar to the one in Anoka. <br />C] <br />