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ELK RIVER MUNICIPAL UTILITIES <br /> REGULAR MEETING OF THE <br /> UTILITIES COMMISSION <br /> October 3,2000 <br /> Elk River Utilities Offices <br /> Members Present: John Dietz, President; George Zabee,Vice Chairman; James Tralle, Trustee <br /> Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent; David Berg, <br /> Water Superintendent <br /> Others Present: David Berg of R.W. Beck <br /> 1. Call meeting to order at 4:00 P.M. October 3,2000 <br /> 2. Consider Utilities Agenda <br /> James Tralle moved to approve the Agenda. George Zabee seconded the motion. Motion <br /> carried 3-0. <br /> 3. Consider Consent Agenda <br /> George Zabee moved to approve the Consent Agenda as follows: <br /> September 13, 2000 Minutes <br /> September 25, 2000 Minutes <br /> James Tralle seconded the motion. Motion carried 3-0. <br /> 5.1 Review and Consider Electric Rate Study <br /> David Berg of R.W. Beck reviewed the completed rate study in detail. Much discussion <br /> followed. David Berg confirmed the rate study reflected projected capital expenses with <br /> bonding for the abnormal capital projects. He also stated that a level of approximately <br /> $2,000,000 cash reserves is appropriate for an electric utility our size. David Berg <br /> recommended rate option #2 for all rate cases. Rate option #2 is a rate realignment where the <br /> residential and demand class customers are neutral and see no overall increase or decrease. <br /> The non-demand class will receive approximately $150,000 rate decrease. As Great River <br /> Energy increases the electric wholesale rates, Elk River Municipal Utilities must implement <br /> across the board retail rate increase to keep the retail rates in line and maintain the appropriate <br /> level of cash reserves. Rate option#2 is as follows: <br />