5.3. ERMUSR 10-10-2006."`~/
Elk River ~ ~
Municip al Utilitie s c,,
13069 Orono Parkway
Elk River, MN 55330
October 3, 2006
To: Elk River Municipal Utilities Commission
Jerry Takle
John Dietz
Jim Tralle
From: Bryan Adams
Subject: GRE Wholesale Electric Rate
phone: 763.441.2020
Fax: 763.941.8099
The recently completed electric retail rate study by R.W. Beck assumed a wholesale rate
increase of 6.9%. In recent discussion with Connexus/GRE, the rate increase is more in
the 4.9% increase. Although the details of the increase are still unknovv~z, this 2%
difference in initial vs. projected wholesale rate is approximately a $220,000 swing.
In 2008 GRE is projected to "simplify" the rate structure by going back to 1 rate instead
of a base and growth rate. The attached 3 sheets reflect the concept of the 2008 GRE
proposed rate structure. I will explain in detail at our meeting how this rate will work.
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