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Elk Diver <br />Municipal Utilities <br />13069 Orono Parkway <br />Elk River, MN 55330 <br />June 7, 2007 <br />To: Elk River Municipal Utilities Commission <br />Jerry Takle <br />Jerry Gumphrey <br />Jim Tralle <br />From: Bryan Adams <br />Subject: Surge Protector Program <br />phone: 763.441.2020 <br />Fax: 763,441.8099 <br />In the past, many of our customers including ourselves would experience electronic equipment <br />damage from lightning. A number of years ago, we started marketing Levington surge protectors <br />as a strategy to educate our customers and minimize damage. Our marketing effort never really <br />was successful. Border States, our wholesale supplier, has discontinued marketing this line. Elk <br />River Winlectric has picked up this surge protection line. I see no reason for us to continue <br />marketing these products. <br />We have about a dozen customers that we have installed whole house surge protectors at the <br />meter base, we monitor these surge protectors and charge $4.50/month to monitor and replace if <br />they fail. None to date have failed. Some of our customers have called and inquired about <br />purchasing these surge protectors instead of continuing to pay $4.50/month. At this rate, these <br />devises have more than been paid for. <br />Because we installed these devices, we have some ongoing liability if we discontinue this <br />program. One solution is to give these devices to the customer and forgo the monthly charge if <br />they sign an indemnity agreement. <br />Attached for your reference is an indemnity agreement drafted by Ron Black. <br />