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J~ <br />Elk River <br />Municipal Utilities <br />13069 Orono Parkway • P.O. Box 430 <br />Elk River, MN 55330-0430 <br />September 4, 2007 <br />To: Elk River Municipal Utilities Commission <br />Jerry Takle <br />Jerry Gumphrey <br />Jim Tralle <br />From: Bryan Adams <br />Subject: Wind Power Tariff <br />~' <br />Phone: 763.441.2020 <br />Fax: 763.441.8099 <br />We offer a Wind Power program through Great River Energy where our customers can purchase <br />blocks of 100KWH of wind power for an additional $2.25/month. We have approximately 197 <br />customers purchasing 375 blocks of power. When Great River Energy changed their rates in <br />January 2007, they reduced their wind power (renewable energy) rate by 7 mils. It was staffs <br />intent to change our block rate from $2.25 to $1.90 but neglected to do so. As we are now <br />advertising our Wind Power programs, I recommend we reduce this rate effective September <br />billing for August consumption. <br />From a broader prospective, is promoting this program still desirable or necessary? Previous <br />state legislation required electric utilities to make good faith efforts towards providing 6% <br />renewable energy by 2010. The Renewable Energy Standard Legislation passed in 2007 <br />changed from "good faith effort" to "shall provide the following % of their total electric sales to <br />retail customers from eligible renewable technologies." <br />12% 2012 <br />17% 2016 <br />20% 2020 <br />25% 2025 <br />With this change from "good faith efforts" to "shall", is it ethical to promote a program where <br />customers pay more for a product we are now obligated to provide? In defense of this program, <br />it is a totally volunteer program by the customers who choose to participate. On the other hand, <br />many of our customers are not aware of the change in legislation. Possibly a letter to these <br />customers is warranted explaining this legislative change and asking them if they still desire to <br />participate. <br />