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Elk River <br />Municipal <br />13069 Orono Parkway <br />Elk River, MN 55330 <br />January 27, 2005 <br />To: Elk River Municipal Utilities Commission <br />Jerry Takle <br />Jim Tralle <br />John Dietz <br />From: Bryan Adams <br />Subject: MMUA Electric Rate Survey <br />phone: 763.441.2020 <br />Fax: 763.441.8099 <br />Minnesota Municipal Utility Association (MMUA) on an annual basis completes an <br />electric rate survey for all electric municipal utilities in Minnesota. Attached are the <br />details of this survey along with the summary. This survey is tabulated for the month of <br />November 2003. <br />American Public Power Association (APPA) also does an electric rate comparison <br />annually. Attached is a summary of APPA's 2002 rate comparisons. <br />In reviewing this data, the cents/kwh is probably not as important as where we stand in <br />regard to average, 151 and 3"~ quartile. The dark triangles on the summary reflect Elk <br />Rivers' standing. <br />In summary, the MMUA rate comparisons reflect Elk River between average to 3rd <br />quartile for group 1 (all Minnesota Municipals) and average to 151 quartile for group 3 <br />(Elk River's comparable). APPA's rate comparisons on the other hand, reflect Elk River <br />in the area of average for residential and commercial class of customers and 3rd quartile <br />to maximum for the industrial class. APPA's rate information source is U.S. Department <br />of Energy form EIA-861 which may be less accurate depending upon how the fuel cost <br />adjustments are reported. Considering Elk Rivers' growth and territory acquisition <br />expenses and limited influence on our largest expense, whole power, our rates are about <br />as good as they can be. Still staff must continue to strive to minimize our expenses and <br />continue our downward pressure on rates particularly the industrial or demand class. <br />ties <br />