Minutes of the regular meeting of the Water, Light, Power and Building Commission of the City of East Grand Forks, Minnesota held August 16, 2005 at 5:00 P.M.

Present:  Quirk, Ogden, Gregoire

Absent :  Vetter

It was moved by Commissioner Gregoire second by Commissioner Ogden that the minutes of the previous meeting of August 2, 2005 be approved as read.

Voting Aye:  Quirk, Ogden, Gregoire

Voting Nay:  None

The following bills and payroll were recommended for approval:

CHECK  NO	VENDOR	DESCRIPTION	AMOUNT
27191	Infotel	VOID	-404.45
27370	Acme Electric	Supplies	12.80
27371	Advanced Business Methods	Service agreement	11.88
27372	Ameripride Linen/Apparel	Contracted services	244.08
27373	Automation Direct.com	Inventory; supplies	639.00
27374	Big Jim’s East Side Tire	Repairs	56.00
27375	Border States Electric	Inventory; supplies	1,532.10
27376	Dan Boyce	Expenses	167.91
27377	Bumper to Bumper	Supplies	63.89
27378	C&G Inc	Tools & equipment	676.30
27379	CDW Government Inc	Supplies; Communication	4,542.14
27380	City of EGF	Transfer	240,524.85
27381	Commissioner of Revenue	Sales; use; grbg surchrg	36,631.00
27382	Cooper Power Sytems	Inventory	29,632.00
27383	Dakota Supply Group	Invnentory	11,990.27
27384	Dakota Pump & Control Co	Supplies	284.81
27385	Diamond Cleaning Supply	Supplies	59.32
27386	EDHA	Reimbursement	37.00
27387	Eagle Electric	Contracted services	145.00
27388	East Side Auto Center	Maintenance	40.00
27389	Ethanol Products	Wtr treat chemicals	1,619.95
27390	Exponent	Advertising; publishing	1,209.56
27391	Fargo Water Equipment	Supplies	3,280.01
27392	The Forum	Miscellaneous	160.28
27393	Galstad Jensen & McCann	Jul legal fees	775.00
27394	Gopher State One Call	Jul locates	225.45
27395	GF Herald	Advertising	816.86
27396	GF Utility Billing	Water tests	375.00
27397	Scott Gravseth	Expenses	230.86
27398	Graymont Western Canada	Wtr treat chemicals	2,943.34
27399	Hardware Hank	Supplies	398.08
27400	Hawkins Inc	Wtr treat chemicals	3,848.29
27401	Holweger Excavating Inc	Contracted services	12,210.00
27402	KBM Inc	Professional fees	21,441.56
27403	Keith's Lock & Key	Supplies	606.77
27404	Leighton Broadcasting	Advertising	440.00
27405	The Leader	Advertising	156.58
27406	Lunseth Plumbing & Heating	Contracted services	759.50
27407	M & W Services Inc	Jul 29-Aug 12 meter reads	1,400.30
27408	Midcontinent Comm Adv Sales	Advertising	674.00
27409	MMPA	Energy/demand	278,036.03
27410	MN Dept Commerce	EFPIA assessment	395.63
27411	MMUA	Dues/subscriptions	1,383.40
27412	Network Center Inc	Inventory	46,611.50
27413	Porta-Mix Concrete	Supplies	1,385.57
27414	Qwest	Communications	1,040.06
27415	Radix Corporation	Maintenance	136.50
27416	Reliance Telephone System	Fiber optic project supplies	17,453.22
27417	Resco	Inventory	2,385.60
27418	Service Bureau	Jul collection fees	135.02
27419	Spiegel & McDiarmid	Professional fees	487.50
27420	SimplexGrinnell	Contracted services	386.06
27421	Sun Dot Communications	Communications	208.47
27422	TDS Metrocom	Communications	38.32
27423	Thatcher Co of Montana	Wtr treat chemicals	1,692.60
27424	Tony Dorn Inc	Service agreements	243.68
27425	Tri-Valley	CIP billing	1,650.00
27426	Universal Services	Supplies	159.75
27427	Valley Door	Repairs	55.00
27428	Verizon Wireless	Communications	7.63
27429	Basin Electric Power Co-op	Current	79,870.07
27430	Water & Light	Utilities	9,268.96
27431	X-cel Energy	Facilities/distribution	5,125.81
		Payroll	57,759.99
TOTAL			886,373.66

It was moved by Commissioner Ogden second by Commissioner Gregoire that the bills and payroll be allowed as recommended and the Secretary issue checks for the same.

Voting Aye:  Quirk, Ogden, Gregoire

Voting Nay:  None

 It was moved by Commissioner Ogden second by Commissioner Gregoire to approve the 2006 Energy Assistance Program Vendor Agreement with Tri-Valley Opportunity Council.

Voting Aye:  Quirk, Ogden, Gregoire

Voting Nay:  None

Commissioner Gregoire, supported by Commissioner Ogden, introduced the following resolution and moved its adoption:

BE IT RESOLVED by the Water, Light, Power and Building Commission of the City of East Grand Forks, Minnesota, that the following rate schedule regarding electric service shall become effective with and new rates applied on the bills rendered in September, 2005 for August, 2005 service, commencing with the mailing on or about September 16, 2005, and

BE IT FURTHER RESOLVED that the following rate shall supersede all prior rates in this respective class:

Where winter season is the calendar months of January through May and October through December, and summer season is the calendar months of June through September.

BE IT FURTHER RESOLVED that this rate is available to three-phase commercial customers using 100,000 KWH, or more, in any month.  Any customer qualifying as a large commercial customer in any month shall remain on this rate for the next 11 months.  The customer's monthly billing KW demand will be the customer's 15 minute integrated KW demand, as measured and recorded, which occurs during the City's monthly system peak KW demand period. The customer's KWH energy will be the total KWH energy usage as measured and recorded on a monthly basis.  The customer is required to maintain a minimum power factor of 98 per cent lagging during peak load periods.  All reactive KVARH in excess of 20 per cent of the KWH energy, as measured and recorded on a monthly basis, will be billed at the rate per KVARH noted above.  The Minimum Demand Charge will be 50 per cent of the customer's monthly billing KW demand in the month of the city's seasonal peak KW demand, and

BE IT FURTHER RESOLVED that the above rates will apply on an annual basis and all power sold at retail is for the customer’s use in their East Grand Forks facility and is not eligible for resale, and

BE IT FURTHER RESOLVED that this energy rate shall include the current city electric franchise fee of $0.0075 per kWh and that the energy rate shall be subject to adjustment to reflect any changes in said city electric franchise fee, and

BE IT FURTHER RESOLVED that the above rates will be subject to monthly adjustment based on the City's average cost of wholesale power. At the Department’s discretion, the above rate may be increased or decreased by 0.1 mill per KWH for each 0.1 mill, or major fraction thereof, by which the City's total average purchased power cost changes, and

BE IT FURTHER RESOLVED that the penalty of 10 per cent of current billing will be added if not paid within 10 days from date of bill rendered.

Voting Aye:  Quirk, Ogden, Gregoire

Voting Nay:  None

The President declared the Resolution passed.

Commissioner Gregoire, supported by Commissioner Ogden, introduced the following resolution and moved its adoption:

BE IT RESOLVED by the Water, Light, Power and Building Commission of the City of East Grand Forks, Minnesota, that the following rate schedule regarding electric service shall become effective with and new rates applied on the bills rendered in September, 2005 for August, 2005 service, commencing with the Industrial mailing on or about September 16, 2005, and

BE IT FURTHER RESOLVED that the following rate shall supersede all prior rates in this respective class:

Where winter season is the calendar months of January through May and October through December, and summer season is the calendar months of June through September.

BE IT FURTHER RESOLVED that this rate is available to three-phase commercial customers using 1,000,000 KWH, or more, in any month.  Any customer qualifying as an industrial customer in any month shall remain on this rate for the next 11 months.  The customer's monthly billing KW demand will be the customer's 15 minute integrated KW demand, as measured and recorded, which occurs coincident with the City's monthly system peak 15 minute KW demand period.  The customer's KWH energy will be the total KWH energy usage as measured and recorded on a monthly basis.  The customer is required to maintain a minimum power factor of 98 per cent lagging during peak load periods.  All reactive KVARH in excess of 20 per cent of the KWH energy, as measured and recorded on a monthly basis, will be billed at the rate per KVARH noted above.  The Minimum Demand Charge will be 50 per cent of the customer's monthly billing KW demand in the month of the customer's seasonal peak KW demand, and

BE IT FURTHER RESOLVED that the wholesale power adjustment clause applies to this rate. At the Department’s discretion, the above rate may be increased or decreased by 0.1 mill per KWH for each 0.1 mill, or major fraction thereof, by which the City's total average purchased power cost changes. All power sold at retail is for the customer’s use in their East Grand Forks facility and is not eligible for resale, and

BE IT FURTHER RESOLVED that the penalty of 10 per cent of current billing will be added if not paid within 10 days from date of bill rendered.

Avoided cost limitation

In no case will the credit issued for under purchases of demand or energy exceed the associated avoided wholesale power cost.

BE IT FURTHER RESOLVED that this energy rate shall include the current city electric franchise fee of $0.0075 per kWh and that the energy rate shall be subject to adjustment to reflect any changes in said city electric franchise fee, and

BE IT FURTHER RESOLVED that the rate for purchase of replacement demand and energy for industrial generator stand-by power for any duration of generation outage shall be governed by and priced according to separate individual stand-by contract agreements, and

BE IT FURTHER RESOLVED that the 2005 Industrial Rate as applied to American Crystal Sugar Company and set forth in a separate written schedule adopted by the Water, Light, Power and Building Commission shall hereby be adopted as an addendum to this general rate.

East Grand Forks Water & Light Department

Adopted 2005 Industrial Rate – Existing Industrial Customer Rate Schedule

Where winter season is the calendar months of January through May and October through December and summer season is the calendar months of June through September.  All power sold at retail is for the customer’s use in their East Grand Forks facility and is not eligible for resale.

2005 Winter Seasonal Demand Credit

A  winter seasonal demand credit of  $6.00 per kW per month for supplemental winter demand in excess of 80 % of the prior summer season supplemental peak monthly demand will be applied on the 2005 winter monthly bills. Winter season months of January through May, 2005 will have the credit calculated based on the summer 2004 American Crystal Sugar monthly supplemental demand peak. October through December 2005 will have the credit calculated based on the summer 2005 American Crystal Sugar monthly supplemental demand peak.  The total winter seasonal demand credit will be capped at an amount not to exceed the amount Water and Light receives from its wholesale power supplier.  

For this rate schedule, supplemental demand, whether for winter or summer season, shall be defined as all monthly demand in excess of that amount of fixed WAPA power which the Water and Light Commission has apportioned for use by this customer class.

Adjustment for over or under purchases of energy

Energy charges are based on  annual projected purchases of 48,250,000 kWh by American Crystal Sugar. Annual energy use  in excess of this quantity would be billed at $0.02900 per kWh. This charge consists of the wholesale cost per kWh plus the franchise fee of $0.0075 per kWh plus a charge for losses.

The energy rate shall be subject to adjustment to reflect any changes in the city electric franchise fee.

Annual energy use below the budgeted quantity would be credited back at $0.02113 per kWh. This credit consists of the wholesale cost per kWh plus a charge for losses.

Adjustment for over or under purchases of demand

Demand charges are based on projected demand use by American Crystal Sugar. Annual winter demand used in excess of 61,523 kW would be billed at $9.72 per kW. Annual winter demand use below the projected quantity would be credited back at $4.41  per kW.

*Annual summer demand used in excess of 9,099 kW would be billed at $10.80 per kW.  Annual summer demand use below the projected quantity would be credited back at $10.00  per kW for avoided MMPA demand and $3.72 per kW for avoided WAPA demand.

Avoided cost limitation

In no case will the credit  issued for under purchases of demand or energy exceed the associated avoided wholesale power cost.

Purchase Power Adjustment

These rates are subject to  monthly adjustments.  At the Department’s discretion, the above rate may be increased or decreased by 0.1 mill per KWH for each 0.1 mill, or major fraction thereof, by which the City's total average purchased power cost changes.

System Additions

Under this rate, any additional facilities which must be constructed by the East Grand Forks Water and Light to serve load growth or additional stand-by at American Crystal Sugar will be paid for by an up front charge to American Crystal Sugar based on the estimated project cost. At the completion of the project, a credit or a bill will be issued to American Crystal Sugar for the work based on the final completed project costs.

This rate is offered on the condition that American Crystal Sugar continue to work closely with East Grand Forks in planning for supplemental wholesale power supplies for future years.

Voting Aye:  Quirk, Ogden, Gregoire

Voting Nay:  None

The President declared the Resolution passed.

It was moved by Commissioner Gregoire second by Commissioner Ogden that the meeting be adjourned to September 6, 2005 at 5:00 P.M.

Voting Aye:  Quirk, Ogden, Gregoire

Voting Nay:  None

                                                                                                            Lori Maloney

                                                                                                            Deputy Sec'y