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~/ <br />Elk River ^-~ <br />Municipal Utilities w <br />13069 Orono Parkway • P.O. Box 430 <br />Elk River, MN 55330-0430 <br />December 3, 2007 <br />To: Elk River Municipal Utilities Commission <br />Jerry Takle <br />Jerry Gumphrey <br />Jim Tralle <br />From: Bryan Adams <br />Subject: Dispersed Generation Rate <br />Phone: 763.441.2020 <br />Fax: 763.441.8099 <br />The dispersed generation program has been offered for a number of years to our demand <br />customers who have on site generation or the ability to curtail load during times of peak load. <br />Because our demand rate is higher than our competition, we have offered this program as a way <br />for the participating customers to reduce their energy costs. The two large data centers will be <br />eligible for this program and it is in our interest to get them to participate. Enclosed is the <br />following information for your review. <br />1) Proposed program description. <br />2) Dispersed Generation Program Agreement. <br />3) Dispersed Generation Program saving calculation for Target and United Health Group <br />data centers. <br />With this program, the customer will experience the approximate savings: <br />Existing Program Proposed Program <br />Cub Foods 12.2% 15.8 <br />Target Data Center - 20.0 <br />United Health Group Data Center - 20.0 <br />Using Cub Foods as an example and applying Excel Energy and Connexus Energy disperse <br />generation rates, Cub Foods would save approximately 9.4% and 28.5%. Sherburne County <br />Government Center has standby generation and is eligible for this program but to date have not <br />shown any interest. <br />