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515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(612) 484 -2177 / FAX: (612) 484 -4538 <br />MEMORANDUM <br />TO: Mayor Fahey and Members of the City Council <br />FROM: Scott Tangen, Public Works Director <br />DATE: April 4, 1996 <br />RE: NSP Electrical Contract for the Booster Station <br />141 County Road B <br />MAYOR <br />Michael I. Fahey <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Steve Morelan <br />Bob Pedersen <br />ADMINISTRATOR <br />Joel R. Hanson <br />NSP has requested we renew our contract that expired on <br />October 15, 1992. We have been operating under an extension <br />clause in the contract. (See #4 in old contract). I reviewed <br />the new contract with Jackie Mooney, Sales Representative from <br />NSP. We have determined that switching from peak controlled <br />time -of -day to peak controlled tiered time -of -day will save us <br />approximately $250 (2.0 %) a year. The new contract is subject to <br />approval by their Underwriting Department. They will review <br />after they receive signed contracts. <br />NSP's Underwriting Department has stated that we should be under <br />the General Time of Day rate. This would result in a 39% <br />increase in our electric bill. Jackie hand - delivered a brief <br />statement to their Underwriting Department (see attached) <br />pointing out that they recommended our current rate, and we <br />believe we should remain at that rate and not be penalized for <br />shifting our load off -peak when NSP is benefitting. <br />Attached is a copy of the old contract, the new contract, hand <br />delivered note, and a graph showing the four different rates that <br />we would fit into. You will notice that the peak controlled <br />tiered time -of -day is also the most economical of the four rates. <br />If you have any questions before Wednesday's meeting, please give <br />me a call. <br />ST:bj <br />Page 23 <br />