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NORTH CENTRAL <br />PUBLIC SERVICE CO. <br />DIVISION OF DONOVAN COMPANIES, INC. <br />1080 MONTREAL AVENUE • ST. PAUL, MINNESOTA 55116 <br />October 20, 1986 <br />Dear NCPS Customer: <br />Recently you may have heard claims that the natural gas service being offered <br />by Circle Pines Municipal Utilities is cheaper than North Central Public <br />Service Co.'s (NCPS). This is simply not the case. <br />Take a look at the facts -- <br />Natural Gas Rates: <br />1. An actual billing for a Circle Pines residential customer from <br />July '85 thru June '86 using 135.2 Mcf was $782.48. The same amount <br />of gas from NCPS would have been $716.21 or a savings of $66.27. In <br />addition, NCPS rates have been reduced another 21% since the 12 <br />month period ended June '86. <br />The Cost of "Free" Service: <br />2. Circle Pines reports that "free" service costs every customer <br />21 cents per Mcf. The Circle Pines resident used for our comparison <br />paid $28.29 during the billing period for "free" service and did not <br />require a service call. <br />Property Taxes: <br />3. Since 1966 NCPS has paid more than $226,800 in property taxes <br />associated with our distribution facilities in Lino Lakes. Contrary <br />to their promises, Circle Pines has yet to contribute from their <br />retained profits to Lino Lakes. <br />In light of these "gas facts" we ask you to help by telling your city <br />representative that you feel it would be best for Lino Lakes if North Central <br />Public Service were selected to serve natural gas to all the new developments <br />in your area. Your support will be very important in calling attention to <br />this matter. <br />Sincerely, <br />Michael J. Gehlen <br />General Manager of Gas Operations <br />North Central Public Service Co. <br />