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Ji <br />Elk River ---- <br />Municip al Utilitie s <br />13069 Orono Parkway <br />Elk River, MN 55330 <br />April 28, 2005 <br />To: Elk River Municipal Utilities Commission <br />Jerry Takle <br />John Dietz <br />James Tralle <br />From: Bryan Adams <br />Subject: APPA Annual Electric Rate Survey <br />phone: 763.441.2020 <br />Fax: 763.441.8099 <br />On an annual basis, APPA completes an Electric Rate Comparison. Attached for your <br />review is APPA's electric rate comparison for year 2003. This information is derived <br />from U.S. Department of Energy form EIA 816, that all electric utilities file on an annual <br />basis. This comparison reflects USA and Minnesota electric utilities. Also attached is a <br />statistical summary of the data in ¢/kwh with Elk River Municipal Utilities position <br />highlighted by the triangle. <br />In the past, APPA surveys reflects' the Elk River Municipal Utilities rates around the <br />average for residential and commercial customers and between the 3`d quartile and <br />maximum for the industrial class. This years' survey reflects Elk River Municipal <br />Utilities position as between the 3`d quartile and maximum in all customer classes. We <br />have verified our published ¢/kwh for the 3 rate classes and the numbers are accurate. <br />How utilities report the fuel cost adjustment or power cost adjustments will influence this <br />survey. <br />As you recall for 2004 and 2005, eve increased our rates by less than our wholesale rate <br />increase while passing on or even less of an increase to the demand (industrial) <br />customers. We must continue to keep downward pressure on our rates. <br />This fall during our budgeting process, staff will do a more thorough electric rate <br />comparison of the surrounding utilities. <br />