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MVA SUBURBAN RATE AUTHORITY HISTORY AND ACCOMPLISHMENTS This summary is intended to describe the history, purposes and accomplishments of the Suburban Rate Authority ("SRA"). We hope you find this informative. If you have any questions about the information, please contact Jim Strommen, SRA general counsel, at Kennedy & Graven at 612-337-9233. The SRA is a joint powers organization consisting of 28 Twin Cities Metropolitan Area suburban cities (list of member cities attached) totaling over 850,000 in population in 2014. The SRA is authorized to intervene in rate matters affecting gas, electric and telephone services and rates charged to municipalities and their residents and businesses. Related to that authority is SRA involvement in utility right-of-way use, gas and electric franchises, and wireless cell phone tower site regulation and lease agreements. It is also authorized to address water and sewer issues. The material below attempts to demonstrate the tangible savings achieved by the SRA. Though actual dollar savings are often difficult to calculate, the SRA has clearly saved residents and businesses of Twin City suburban communities millions of dollars telephone, gas, and electric rates since 1975. SRA HISTORY The SRA was organized in 1963, for the purpose of providing collective strength in negotiating franchises with the Minneapolis Gas Company (later Minnegasco and CenterPoint Energy), which served the original SRA members. In 1974, the Legislature adopted the Public Utilities Act to provide for state regulation of gas and electric utilities, except for cooperative electric associations and municipal utilities. SRA assisted the state in setting up regulation and intervened in the early gas and electric cases to provide leadership and direction in utility regulation. Since that time, it has been active in matters concerning gas, electric and telephone rate regulation and in legislation concerning the Public Utilities Commission ("PUC"). In recent years, the SRA has addressed numerous issues of importance to municipalities in all matters of utility use of right-of-way and other public ground, as well as rates paid by suburban ratepayers, including municipalities themselves. The SRA responds to these matters within PUC proceedings, city ordinances, agreements with utilities and occasionally in state legislation. ISSUES AND SAVINGS TO CITIES/RATEPAYERS The collective voice and combined resources of Twin Cities suburban municipalities has allowed the SRA to address utility issues most single cities could never afford to take on. The SRA is careful to address unique issues not otherwise of interest or within the expertise of state agencies or other parties involved in utility matters. Though described in more detail below (see Estimated Dollar Savings, below), savings from recent SRA efforts in 2014 will result in approximately $350,000 in back credits to municipalities with sewer pumping 355483v1 1MS SU160-3 I