Laserfiche WebLink
)4*-- <br /> Elk River <br /> Municipal Utilities <br /> 322 King Avenue phone:763.441.2020 <br /> Elk River,MN 55330 Fax:763.4412099 <br /> September 24, 2003 <br /> To: Elk River Municipal Utilities Commission <br /> John Dietz <br /> Jerry Takle <br /> James Tralle <br /> From: Bryan C. Adams <br /> Subject: Great River Energy's Wholesale Electric Rate <br /> At the July 8, 2003, Elk River Municipal Utilities Commission meeting, we discussed the <br /> two tier rate which Great River Energy will be implementing in 2004. Although the <br /> exact rate structure is still undetermined by Great River Energy, the first cut at the revised <br /> rates are shown on the attached sheet and reflect a 7.3% increase. This large rate increase <br /> is caused in part by the following: <br /> a) Great River Energy is starting the debt service payment for the two <br /> newly constructed peaking units at Pleasant Valley and Lakefield Junction. <br /> b) Because these two peaking units are gas fired (approximately 50% of <br /> Great River Energy's generation is gas fired), Great River Energy is <br /> heavily into the natural gas markets which are now volatile with increasing <br /> prices. <br /> The attached spreadsheet reflects our anticipated power and energy purchases from Great <br /> River Energy. Based on a consumption increase of 6% demand, 5.7% energy, 2004 cost <br /> with 2003 rates is $8,108,680. 2004 cost with assumed 2004 rates is $8,747,641. The <br /> difference is approximately $639,000 which will be the largest portion of our retail rate <br /> increase in 2004. <br />