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6.3. ERMUSR 01-15-2008J~ Elk River Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk River, MN 55330-0430 January 4, 2008 To: Elk River Municipal Utilities Commission Jerry Takle Jerry Gumphrey Jim Tralle From: Bryan Adams Subject: APPA Annual Electric Rate Survey Phone: 763.441.2020 Fax: 763.441.8099 On an annual basis APPA completes an Electric Rate Comparison. This information is derived from U.S. Department of Energy form ElA-861, that all electric utilities file on an annual basis. Attached is the following information for your review. 1) Summary of data with triangles reflecting Elk River Municipal Utilities position. 2) APPA data for 2006 comparisons. The conclusions drawn from this analysis are the same as previous years. Our Residential and Commercial rates are competitive. Our Industrial (demand) rate is not competitive and we need to continue to keep downward pressure on the demand rate. Last month we raised our retail rate by 7.2% which passes on only our wholesale rate increase from Great River Energy. We were just informed that Connexus raised rates by 7% overall. Residential rates increased 6.6% and Commercial/Industrial by 8.9%. Their residential rate will be slightly less than ours. Our demand rate was 10% higher than Connexus' rate but will now be 8% - 9% higher. APPA 2006 Electric Rate Comparison RESIDENTIAL COMMERCIAL ~ INDUSTRIAL ¢/kwh ¢/kwh ~ ¢/kwh Efk River Municipal Utilities____ ~___ 8.9 j 8.1 7.2 U.S. Utilities ~ ~ Minimum_ ___ ____ 1st Quartile _ _9.2 9.4 i _ 8.5 __ __ 8.6 -- _ -_- _ 5.8 - --_ 5.9 - - --- Average _ 3rd Quartile ~ 9.7 10.0 _ 8.8 9.0 5.9 _ 6.0 Maximum 10.5 9.3 6.0 ~--- Minnesota Utilities Minimum 8.2 - 6.8 -- - 5.1 ~--_-- 1 st Quartile 8.4 6.9 5.2 Avera a __ 8.6 7.1 5.4 3rd Quartile 8.8 _ _ 7.3 _ 5.6 Maximum __ ~ 8.9__ I 7.6 ~ _ __ 6.0 _ ~ ___ _ __ ~ __ ~ Minnesota Publicly Owned Minimum 1st Quartile - Averac,~e 3rd Quartile _ j _4.8 6.5 --- 7 9 9.1 _ _____T 4_.1__ 6.4 _ _-- _ 7.7 ~~.3 ~ - _ _ _ ___ _ _ _ 0.0 0.0 4.6 ~ 7.3 - -- Maximum 14.4 i 27.0 L 19.6 _ __ _ __ Minnesota Investo__r Owned ~ Minimum _ 1st Quartile ___ Average 3rd Quartile - - -- _.1 _____ __ 7.6 8.9 - 10. 0 -- - --- T ____ __ 6.2 6.5 8.0 9.0 ~ --- ---- -- 0.0 4.1 -- 4.4 -- - 5.8 --- Maximum _ _ _______ 9.6 _ 10~ __ ___ 6.2 -- r ---- Minnesota Cooperatives _ II -- f Minimum _ ___ 1st Quartile _ Average 3rd Quartile i Maximum __ 6.5 - --- _ 7.5 ____ 8.4 _ ~ 9.0 11.2 -- - ~ -- - --- _ 0.0_ ~ 0.0 __ 6.4 _ __ 0.0 __6.8 __ 3.6___ 7.9 _ 5.6 ~ - ~ 8.9 ------ i - ~- 11.5 Average Revenue per kWh, 2006 (in .cents) United States and Minnesota Residential Commercial Industrial Total Rev/kWh Rev/kWh Rev/kWh Rev/kWh U.S. Utilities Publicly Owned Investor-Owned Cooperative Minnesota Publicly Owned Investor-Owned Cooperative Minnesota Publicly Owned Ada City of Adrian Public Utilities Comm Aitkin Public Utilities Comm Alexandria City of Alpha City of Alvarado City of Anoka City of Arlington City of Austin City of Bagley Public Utilities Comm Barnesville City of Gaudette City of Benson City of Bigelow City of Biwabik City of Blooming Prairie City of Blue Earth City of Brainerd Public Utilities Breckenridge City of Brewster City of Brownton City of Buffalo City of Buhl City of Caledonia City of Ceylon City of Chaska City of Darwin Village of Delano Municipal Utilities 9.2 8.5 6.0 8.1 10.5 9.3 5.9 8.9 9.5 8.7 5.8 8.5 8.2 7.6 6.0 7.1 8.9 7.0 5.1 6.7 8.6 6.8 5.2 7.7 6.3 9.8 4.3 7.1 7.9 8.1 9.0 8.1 6.8 7.2 8.0 7.4 7.1 6.6 5.1 5.9 8.3 8.0 - 8.2 7.5 7.5 - 7.5 9.1 7.5 6.2 7.5 9.0 9.0 - 9.0 9.4 7.7 4.5 7.0 6.2 6.1 6.4 6.3 7.3 7.0 - 7.3 8.1 6.7 6.2 6.9 6.5 7.4 5.6 6.2 6.7 9.6 7.5 7.5 6.1 6.3 - 6.2 8.2 7.2 - 7.5 9.2 9.1 7.4 8.0 7.1 6.7 5.2 6.1 5.5 6.1 5.8 5.8 6.5 6.5 9.0 7.1 6.9 7.9 8.7 7.2 9.1 9.2 6.3 8.9 6.0 5.9 - 6.0 8.5 5.9 5.8 6.9 7.1 7.0 - 7.1 8.5 7.6 7.3 7.6 7.6 7.3 - 7.6 11.2 11.4 9.6 10.3 Residential Commercial Industrial Total Rev/kWh Rev/kWh Rev/kWh Rev/kWh Detroit Lakes City of 6.4 6.3 5.1 5.8 Dunnell City of 7.5 7.9 - 7.7 East Grand Forks City of 8.6 7.5 6.9 7.5 Eitzen. City of 8.2 8.0 7.5 8.1 Elbow Lake City of 8.4 5.7 11.6 6.8 Elk River City of 8.9 8.1 7.2 7.9 Ely City of 7.2 6.1 5.0 6.5 Fairfax City of 6.4 7.4 6.6 6.8 Fairmont Public Utilities Comm 7.9 6:7 5.9 6.8 Fosston City of 6.8 6.4 9.1 7.2 Gilbert City of 6.4 6.5 6.3 6.4 Glencoe Light & Power Comm 11.7 11.1 10.0 10.9 Grand Marais City of 9.4 8.4 - 8.7 Grand Rapids Public Util Comm 7.0 6.3 5.3 6.4 Granite Falls City of 9.1 9.6 6.9 9.2 Grove City City of 8.2 7.6 - 7.9 Halstad City of 6.5 6.0 - 6.2 Harmony City of 6.8 6.8 7.2 6.8 Hawley Public Utilities Comm 7.4 6.9 - 7.2 Henning City of 6.4 5.3 - 6.3 Hibbing Public Utilities Comm 10.2 8.4 5.6 8.9 Hutchinson Utilities Comm 9.8 9.3 8.2 8.8 Jackson City of 7.1 6.7 6.4 6.6 Janesville City of 12.1 11.7 - 12.0 Kandiyohi City of 6.3 6.3 - 6.3 Kasota City of 6.4 11.6 - 6.9 Kasson City of 8.3 6.8 - 7.7 Keewatin Public Utilities 7.2 5.9 - 7.1 Kenyon Municipal Utilities 14.4 12.7 11.4 12.9 Lake City City of 9.2 8.3 5.2 6.2 Lake Crystal City of 9.2 7.5 - 8.4 Lake Park City of 7.3 6.6 - 7.0 Lakefield City of 6.4 6.4 - 6.4 Lanesboro Public Utility Comm 7.5 7.4 - 7.4 Le Sueur City of 9.7 10.2 7.6 8.0 Litchfield Public Utilities 5.7 6.2 4.6 5.3 Luverne City of 8.1 6.9 5.0 6.1 Mabel City of 7.4 7.3 - 7.3 Madelia City of 10.5 9.5 7.8 9.2 Madison City of 5.1 5.4 6.1 5.3 Marshall City of 5.8 6.5 4.3 4.5 Melrose Public Utilities 4.8 5.1 4.0 4.4 Moorhead City of 6.1 6.7 4.8 5.5 Moose Lake Water & Light Comm 7.8 8.0 - 8.0 Mora City of 9.1 7.7 7.1 7.8 Mountain Iron City of 7.1 8.8 8.2 7.9 Mountain Lake City of 10.7 7.8 8.0 9.0 Nashwauk City of 5.4 6.2 - 5.8 New Prague Utilities Comm 8.3 7.5 6.8 7.3 New Ulm Public Utilities Comm 13.0 9.7 9.7 10.4 Residential Commercial Industrial Total Rev/kWh Rev/kWh Rev/kWh Rev/kWh Newfolden City of 7.5 5.6 - 6.5 Nielsville City of g.g g g _ 9 5 North Branch Water & Light Comm 9.4 8.3 7.3 8.6 North St Paul City of 9.6 8.8 - 9.3 Olivia City of 5.6 6.7 5.9 5.9 Ortonville City of 6.3 6.2 - 6,2 Owatonna City of 8.7 7.1 5.9 6.8 Peterson City of 9.2 7.3 - 8 8 Pierz City of 5.3 4.5 8A 5.2 Preston Public Utilities Comm 8.0 7.7 7.3 7.7 Princeton Public Utils Comm 12.4 11.1 8.8 10.4 Proctor Public Utilities Comm 5.9 5.1 6.5 5.8 Randall City of 5.8 7.6 6.7 6.5 Redwood Falls Public Util Comm 5.2 8.7 5.0 6.1 Rochester Public Utilities 10.1 8.1 5.9 8.1 Roseau City of 6.5 5.7 - 6.0 Round Lake City of 6.9 11.2 7.7 8.0 Rushford City of 9.4 4.1 19.6 8.6 Rushmore City of 7.6 7.5 5.0 7.6 Saint Peter City of 10.9 8.6 7.4 9.0 Sauk Centre City of 5.8 6.0 5.2 5.5 Shakopee Public Utilities Comm 8.4 9.5 7.4 7.9 Shelly City of 7.5 6.1 10.6 7.2 Sleepy Eye Public Utility Comm 8.7 8.3 7.7 8.2 Spring Grove City of 9.9 6.0 4.3 6.3 Spring Valley Pub Utils Comm 9.1 8.1 - 8.5 Springfield Public Utils Comm 10.9 10.2 8.1 9.3 St Charles City of 6.0 7.0 4.2 6.0 St James City of 5.6 5.7 4.7 5.4 Staples City of 8.0 8.1 5.5 7.4 Stephen City of 7.6 6.1 - 6.9 Thief River Falls City of 5.7 5.2 5.4 5.4 Truman Public Utilities Comm 10.7 10.9 5.2 7.6 Two Harbors City of 7.6 7.6 7.6 7.6 Tyler City of 6.9 6.9 - 6.9 Virginia City of 8.4 8.0 - 8.1 Wadena City of 6.2 6.5 5.4 5.8 Warren City of 9.7 g,1 _ 8 8 Warroad City of 7.1 6.2 3.5 4.8 Waseca City of 9.9 8.4 - 9.0 Wells City of 9.9 10.1 - 10.0 Westbrook City of 7.2 5.8 6.4 6.8 Whalan City of 9.1 27.0 - 15.1 Willmar Municipal Utils Comm 7.7 7.0 5.6 6.6 Windom City of 7.8 7.7 7.4 7.6 Winthrop City of 9.4 7.8 5.9 7 9 Worthington City of 6.8 6.6 4.8 5.8 Minnesota Residential Commercial Industrial Total Rev/kWh Rev/kWh Rev/kWh Rev/kWh Investor-Owned Interstate Power and Light Co 10.0 9.0 7.3 8.7 Minnesota Power Inc 7.1 6.2 4.1 4.8 Northern States Power Co 9.2 7.0 5.8 7.3 Northwestern Wisconsin Elec Co 10.7 11.5 - 11.0 Otter Tail Power Co 7.6 6.5 5.0 6.4 Minnesota Cooperative Agralite Electric Coop 9.2 2.6 7.3 7.3 Anoka Electric Coop 9.0 6.8 5.4 8.0 Arrowhead Electric Coop, Inc 10.0 8.6 - 9.4 Beltrami Electric Coop, Inc 6.7 6.4 11.5 6.7 Blue Earth-Nicollet-Faribautt 8.9 6.5 - 8.0 Brown County Rural Elec Assn 7.5 6.7 5.4 6.9 Clearwater-Polk Elec Coop Inc 7.7 6.9 - 7.6 Cooperative L&P Assn Lake Cnty 9.0 8.3 5.0 7.9 Crow Wing Cooperative Power & Light Comp 8.3 7.3 9.1 8.0 Dakota Electric Assn 8.6 8.3 5.6 7.2 East Central Energy 10.2 7.5 4.8 8.7 Federated Rural Electric Assn 6.5 5.1 - 5.8 Freeborn-Mower Coop Services 9.4 6.3 3.9 7.2 Goodhue County Coop Elec Assn 9.0 8.9 - 9.0 H-D Electric Coop Inc 8.6 - - 8.6 Heartland Power Coop 8.6 - - 8.6 Itasca-Mantrap Co-op Electrical Assn 8.2 7.8 4.6 7.2 Kandiyohi Power Coop 8.2 7.2 5.6 7.8 Lake Country Power 9.3 7.6 5.5 8.7 Lake Region Coop Elec Assn 9.1 8.3 - 9.0 Lyon-Lincoln Electric Coop Inc 7.5 6.1 7.0 7.2 McLeod Cooperative Power Assn 8.5 6.9 4.8 7.3 Meeker Coop Light & Power Assn 8.7 8.4 5.5 8.6 Mille Lacs Electric Coop 9.8 7.2 6.4 8.6 Minnesota Valley Coop L&P Assn 7.0 6.7 3.8 6.1 Minnesota Valley Electric Coop 8.5 5.8 - 7.4 Nobles Cooperative Electric 7.3 5.4 - 6.5 North Itasca Electric Coop Inc 11.2 8.3 6.4 10.5 North Star Electric Coop, Inc 8.0 6.6 - 7.5 P K M Electric Coop, Inc 7.7 7.1 - 7.6 People's Cooperative Services 10.1 8.2 - 9.8 Red Lake Electric Coop, Inc 6.7 5.9 - 6.5 Red River Valley Coop Pwr Assn 7.0 6.9 - 7.0 Redwood Electric Cooperative 8.9 8.7 - 8.9 Renville-Sibley Coop Pwr Assn 7.4 7.9 3.7 4.8 Roseau Electric Coop, Inc 6.7 6.8 4.7 6.3 Runestone Eiectric Assn 8.5 7.9 5.6 8.2 Sioux Valley SW Elec Coop 7.3 6.0 - 6.9 South Central Electric Assn 8.1 6.5 4.1 6.1 Stearns Cooperative Elec Assn 7.3 6.8 6.2 7.2 Residential Commercial Industrial Total Rev/kWh Rev/kWh Rev/kWh Rev/kWh Steele-Waseca Cooperative Electric 10.5 8.7 5.0 8.5 Todd-Wadena Electric Coop 8.5 7.0 7.1 8.1 Traverse Electric Coop, Inc 8.4 6.9 6.6 8.1 Tri-County Electric Coop (MN) 10.3 8.2 3.6 8.8 Wild Rice Electric Coop, Inc 7.2 6.4 4.0 7.0 Wright-Hennepin Coop Elec Assn 7.9 6.5 5.7 7.3 Source: U.S. Department of Energy, Energy Information Administration, Form EIA-861, 2006 data. Prepared November 2007 by the American Public Power Association, Department of Statistical Analysis