Approved by the Board

The Board of Commissioners met in the Boardroom of the Administrative Offices, 1232 Haco Drive, Lansing, Michigan.

Present: Commissioners Gary Calkins, Ron Callen, Robert Cochran, Joseph Graves, Semone James (arrived at 5:45 p.m.) and Santiago Rios.

PUBLIC COMMENTS

Joseph Davis, Business Manager of IBEW Local 352 stated that he represents the employees of the BWL, CUC in Delta and Lansing Grand River. Mr. Davis expressed his concern over the 65% steam rate increase proposal and the over simplification of the issue. Mr. Davis went onto state that he attempted to estimate whether or not a 25% increase in employee premiums as suggested by management would cover the steam shortfall and he found that they did not. Mr. Davis also stated that the Sunday editorial implied that if employee cost sharing had been implemented then the solution to this problem would have been simple. However, Mr. Davis stated that the article did acknowledge that the BWL is the only city agency in which employees share in the cost of paying premiums. Mr. Davis also stated that the City is experiencing an $11 million deficit and they are utilizing their rainy day fund and other avenues to address those issues. He went onto state that during contract negotiations the union tries to work with BWL management to achieve an equitable plan for all parties involved. Mr. Davis recommended that based on public meetings the Board should consider implementing a rate increase that would occur over the next 3 - 5 years to allow downtown businesses the opportunity to plan for such a change.

Hank Zurburg, First Presbyterian Church, finance committee member stated that their points of interest regarding the steam rate increase had already been expressed by others. However, he wanted his concerns placed on the official record as they did not have opportunity to present something earlier.

COMMUNICATIONS

Letter dated August 14, 2006 from Tom Marlow, Manager of Delivery Services in support of the General Manager.

Letter dated august 15, 2006 from Phyllis Mellon, Chief Deputy Director, State of Michigan in regards to the request for additional information regarding the proposed rate increase.

Letter dated August 15, 2006 from former commissioner Tim Haggert in support of the General Manager.

COMMITTEE REPORTS

Resolution-2006-8-4

The Committee of the Whole of the Board of Water and Light met at the Executive Offices, Lansing, beginning at 3:00 p.m., Tuesday, August 15, 2006.

Commissioner Rios called the meeting to order and asked the secretary to call the roll. The following members were present: Commissioners Robert Cochran, Joseph Graves, Semone James, Santiago Rios and Robin Smith.

Public Comment

The first interview was conducted with Charles Moore of C.L. Moore & Associates, P.C. Mr. Moore presented his organization and a question/answer period followed the interview.

The second session took place with Kirk Balcom and Mary McCune of Rehmann Robson. Both individuals presented their organization and a question/answer period followed the interview.

Upon conclusion of the interviews the Commissioners discussed the presentations and qualifications of both candidates. After discussion, it was decided that the Committee of the Whole would bring forth a recommendation to the full Board for a vote on Tuesday, August 15, 2006 at 5:30 p.m. to award the RFP for the Interim Internal Auditor to C.L. Moore & Associates, P.C.

As part of the report, Commissioner Rios stated that both Interim Internal Auditor candidates provided a comprehensive response to the Board’s request and both responded well to all of the interview questions.

Motion by Commissioner Rios, seconded by Commissioner Graves to accept the report as presented.

RATE INCREASE DELIBERATIONS

General Manager, Sandy Novick reminded the Commissioners and the public that the BWL proposed the electric and steam rate changes on June 16, 2006 with a filing as appropriate with City Clerk in Lansing. Mr. Novick also stated that notices were filed in the Lansing State Journal on July 10^th and published notices appeared in the City Pulse on July 12^th and July 26^th. He also stated that information regarding the increases has been available to the public, including information that was printed in the “Connections” monthly bill insert that is sent to all BWL customers. The public hearing occurred on August 1, 2006 in which three customers spoke to the Board regarding the electric rate change, two of which expressed concern while one encouraged the increase as a means to encourage conservation. Mr. Novick went onto state that staff discussed the conservation issue and suggested that it maybe an issue that they discuss in the future; not raising rates for conservation but conservation in general.

Furthermore, Mr. Novick also stated that staff is continuing to review operating expenses and the impact of GM’s decrease on all the utilities is still being felt which was incorporated in the recommendation regarding increased environmental expenditures on north Lansing landfill. Mr. Novick stated that it was evident of their attempt to catch up on the overhauls from the BWL’s generating equipment. He also stated that there is $1.2 million exposure on Eckert unit #5 and as a result they are still reviewing that information and taking into account the statements made at the public hearing. Mr. Novick further stated that staff would still recommend to the Commissioners a 1.5% increase for the electric as was initially proposed.

Commissioner Rios stated that for clarity purposes each rate increase should be dealt with separately. He went onto propose an electric rate increase recommendation from management with respect to the rate increase. Please see the Electric and Steam Rate Increase section under Resolutions for the actual wording of the resolution and further details.

Commissioner Calkins stated the BWL received a minimal number of people opposing the electric rate increase. He went onto state that with the evaluation he still thinks that is an appropriate figure and therefore continues to recommend it.

Mr. Novick stated that twelve customers came and spoke in regards to the steam rate increase, one also came this evening and eight letters were received from downtown businesses expressing their concerns. Mr. Novick went onto state that the beauty of public power is the public hearing process and the opportunity for customers to be heard. He stated that oftentimes, if you go through the public service commission and Consumers Energy wants to have a rate increase and you live in North Michigan then it is not as easy to be heard. Mr. Novick also stated that the beauty of public power is that we are a part of the community, in the community and people came and expressed their concerns.

Commissioner Callen stated that you do not need an attorney to come here for this process.

Mr. Novick then said that he agreed and also stated that the public comments were clear and consistent. Based on the comments, Mr. Novick stated that staff divided them into two categories; one is clearly that the customers want a transition time for the rate adjustments to be spread out over a period of time at smaller increments than initially proposed. Mr. Novick stated that the second category involved a long-term strategic plan that gives a sense of direction regarding the steam system, associated costs, and the resulting rates based on those costs. He went onto state that staff has been working on that very thing, with the completion of the integrated resource plan, management will soon come before the Commissioners with a series of policy discussions that can be used to develop long range plans.

Mr. Novick also stated that they would do whatever they could to be creative in searching for additional cost savings in the near term and being responsive to the community in spreading out the impact. He also stated that they recognize the value of the steam system to the downtown development and it is definitely a plus to all the utilities for the downtown area to revitalize itself. Mr. Novick went onto state that they have tried to move toward a financially independent utility and there are some other benefits in keeping steam alive. He also stated that they have heard from the community and they provided some great insight and management will be responsive to whatever the Commissioners decide to do.

Commissioner Rios asked to be recognized by the Chair in order to bring forth a motion at that time. He then went onto state that from his perspective Mr. Novick accurately described what he thought was very honest and open public input. Commissioner Rios also stated that they have a responsibility to hear and respond to the utility and the public in a responsible manner and he thought that Mr. Novick’s comments spoke to that fact. As such, Commissioner Rios introduced the following motion:

Motion by Commissioner Rios, seconded by Commissioner Calkins to accept the three-part motion in regards to steam rate increase as follows:

2. That management be directed to develop a strategic plan/process for the BWL's steam business to minimally include:

a. comprehensive 3-5 year business plan for the BWL's steam business which incorporates: response to cost of study issues raised by the State of Michigan, appropriate elements of the integrated resource plan, collection from GM for early termination of contract, a plan to further reduce costs, a plan to develop additional efficiencies in the operation including scaling back, analysis and plan for business growth potential, and considers the option of getting out of the steam business entirely; and

3. That management immediately begin to monitor and make recommendations to this Board on a monthly basis, on necessary adjustments to the BWL budget to make up the approximately $1.8 million difference in the projected revenue from the steam rate increase, which will include reductions in costs, increased efficiencies, utilization of reserves and/or credits, and any other reasonable measure to protect the integrity of the budget. And within the next 90 days present a financial plan/process and recommendations for the balance of the year base on actual financial performance to date, which can also serve as the foundation for planning next year's budget.

Discussion: Commissioner Callen stated that some of Commissioner Rios suggestions are extremely complex. He also stated that he could not fathom the total impact of what was being said but some things did come to mind, 1) some of what Commissioner Rios is asking for will appear in the IRP, 2) there is inconsistency between lowering the steam rate increase to 35% and the proposal since they have discussed making the steam utility independent and 3) he is interested in a stepwise rate increase similar to what the General Manager mentioned and the public proposed. Commissioner Callen went onto state that he was not sure if that was in Commissioner Rios proposal or not, therefore, he stated that he did not feel prepared to vote on something that complex.

Commissioner Rios stated that as an attorney he stated his motion a little different than Mr. Novick but he believes that it is relatively the same. The only difference is that he placed parameters on his proposal.

Commissioner Calkins asked staff to respond to the 90-day timeframe mentioned in the motion.

Mr. Novick stated that he believed the aforementioned timeframe is close to the time staff would come before the Board as normal course for long-range financial plans. He went onto state that he would certainly feel very comfortable coming to the Board on a monthly basis with year-to-date information to see where we are and what is going to happen in order to make adjustments in a timely fashion. Mr. Novick also stated that the timeframe is inline with the overall plan for the steam system, which is a process that they are already starting to plan.

Commissioner Rios stated that he did say within 90-days but some of the work is already done such as the HR plan and he knows that Mr. Novick has already looked at some of the other questions.

Mr. Novick stated they can make good progress and the IRP has a customer advisory group, which they will want to include. He also stated that he did not know if they could provide a definitive plan in 90-days but that he thought they could certainly commit to do their best to move forward.

Commissioner Rios stated that he called it a plan/process because part of it is a process while the plan is developing the outline and determining what we are going to do and how are we going to do it.

Commissioner Callen stated that he wanted to explain his vote and further stated that he was still unclear as to the extent and penetration of the motion just read. He went onto state that the 35% rate increase may make sense but it does seem to be consistent with trying to make the utility independent but perhaps in the motion Commissioner Rios was referring to intent rather than a guarantee.

Mr. Novick addressed Commissioner Callen by stating that that has been the Boards policy for some time now but we assume that you recognize that it is a slow process and will certainly be so for steam and chilled water as opposed to the others. He went onto state that they may reach those goals in a year and then the next year there maybe some slippage. However, Mr. Novick stated that we should continue to strive for the goal even if it is not achieved in the short term of this proposal, which would not be any different than what they have been doing all along.

Commissioner Callen stated that he had another question in which he asked, where do we stand in terms of responding to public concern over what he calls a ‘stepwise’ introduction of the steam rate increase.

Commissioner Calkins stated that he believed Commissioner Rios’ motion discussed the fact that if we progress we would look at progression rate increases.

Commissioner Callen then asked if the progression would be through the 35% steam rate increase.

Commissioner Rios responded by stating that the 35% steam rate increase has been approved, effective September 1, 2006. He then went onto state that they have asked management to develop a 3-5 year amortization plan of reaching independence as part of their objective and goal.

RESOLUTIONS

Resolution-2006-8-6

INTERIM INTERNAL AUDITOR SELECTION

WHEREAS, the Committee of the Whole of the Board of Commissioners of the Board of Water and Light met and interviewed each candidate for the Interim Internal Auditor position on August 15, 2006; and

WHEREAS, the Committee of the Whole of the Board of Commissioners of the Board of Water and Light met and discussed each candidate’s presentation and credentials after the interviews on August 15, 2006.

RESOLVED, That the Committee of the Whole recommends that the Request for Proposal (RFP) award for the Interim Internal Auditor be granted to C.L. Moore & Associates, P.C.

Motion by Commissioner Rios, seconded by Commissioner Calkins to accept the recommendation of the Committee of the Whole to hire C.L. Moore & Associates, P.C. as the Interim Internal Auditor.

Resolution-2006-8-7

ELECTRIC AND STEAM RATE INCREASES

WHEREAS, the staff of the BWL, in the course of its financial planning process, has determined that the electric and steam utilities will experience significant revenue shortfalls in Fiscal Year 2007 and beyond; and

WHEREAS, such revenue shortfalls are caused primarily by the combination of very modest revenue growth over the last four years, rising costs due to higher labor, health care, maintenance and environmental costs as well as overall inflation, and reduced steam consumption due to GM plant closings; and

WHEREAS, the last general rate increase in the electric utility occurred in July 2005 and the last general rate increase in the steam utility occurred in January 2003; and

WHEREAS, the staff of the BWL has proposed a general increase of 1.5% for the electric utility effective September 1, 2006, and an increase of 65% for the steam utility effective September 1, 2006; and

WHEREAS, notice of the proposed increases were communicated to all customers by mail on July 13, 2006, public notice was made on June 16, 2006, and a public hearing was held on August 1, 2006, to receive comments on the proposed increases; and

WHEREAS, the Board of Commissioners has considered the comments of the public as well as the recommendations made by BWL and concluded that a 35% for industrial and commercial steam was appropriate.

RESOLVED, That the electric and steam rate schedules listed below and detailed in the attached rate schedules be adopted and made effective for electric and steam consumption on or after September 1, 2006.

General Service - Rate 3
Large General Srvice - Rate 4
Primary Service - Rate 5
Municipal Water Pumping Service - Rate 7
Large Capacity Service - Rate 8
Outdoor Lighting Service - Rate 9
Traffic Light Service - Rate 11
Space Conditioning and Electric Water Heating Service - Rate 12
Residential Senior Citizen - Rate 21
Street Lighting Service - Rate 31
Street Lighting Service - Rate 32

Motion by Commissioner Rios, seconded by Commissioner Graves to accept the resolution as presented with modification to the steam rate to reflect a 35% increase.

Availability - This rate is available to any single-family or multifamily dwelling of 4 units or less when the entire electric requirements are supplied at one point of delivery through one meter. Service to appurtenant buildings may be taken through the same meter.

Service under this rate is not available to any single-family or multifamily dwelling unit of 4 units or less when a portion of the dwelling unit is used for commercial, industrial, or resale purposes unless the wiring is so arranged that service for residential and non-residential purposes are metered separately.

Nature of Service - The service is alternating current, 60 hertz, single phase, 120/240 nominal volts.

Minimum Bill - The minimum bill is the basic service charge included in the monthly rate.

Energy Cost Adjustment - This rate is subject to an Energy Cost Adjustment factor added to the above energy charges and calculated as defined on a separate rate schedule incorporated herein by this reference.

Tax Adjustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the Board of Water and Light (BWL) property, or its operation, or the production and/or sale of electric energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases.

Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill that is not paid on or before the due date.

Application Charge - A $7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the BWL.

Auxiliary Power Provision - Domestic customers desiring electric service as an auxiliary source of power to wind or solar powered generating equipment may take service under this rate schedule under special agreement with the BWL. The customer shall pay the charges set forth above. A customer taking auxiliary power under this rate shall pay all reasonable costs associated with any alteration of BWL equipment required for proper operation of the customer's generating equipment in parallel with the BWL system. A customer may elect to sell energy to the BWL at the rate of $.022/kWh delivered. Customers selling energy to the BWL shall pay a charge of $6.40 per month or part thereof instead of the above Basic Service Charge.

Rules and Regulations - Service under this rate is subject to the BWL Rules and Regulations for Electric Service incorporated herein by this reference.

Availability - This rate is available to any customer desiring secondary voltage service for any purpose when supplied at one point of delivery through one meter. The limitation to secondary-voltage service may be waived in instances where the character of the electric load at the premises served has changed substantially. This rate is not available for emergency or standby service.

Nature of Service - The service is alternating current, 60 hertz, single phase or three phase. The secondary voltage is determined by the Board of Water and Light (BWL).

Minimum Bill - The minimum bill is the basic service charge included in the monthly rate.

Tax Adjustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the BWL property, or its operation, or the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases.

Metering - Where the BWL elects to measure the service on the primary side of the transformers, the metered kWh thus measured will be reduced by 3% for billing purposes to adjust for transformer losses. Where the customer receives service through more than one meter, the consumption as registered by the different meters will not be combined for billing purposes, but will be computed and billed separately.

Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill that is not paid on or before the due date.

Application Charge - A $7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the BWL.

Auxiliary Power Provision - Customers desiring electric service as an auxiliary source of power to wind or solar powered generating equipment may take service under this rate schedule under special agreement with the BWL. The customer shall pay the charges set forth above. A customer taking auxiliary power under this rate shall pay all reasonable costs associated with any alteration of BWL equipment required for proper operation of the customer's generating equipment in parallel with the BWL system. A customer may elect to sell energy to the BWL at the rate of $.022/kWh delivered. Customers selling energy to the BWL shall pay a charge of $25.00 per month or part thereof instead of the above Basic Service Charge.

Rules and Regulations - Service under this rate is subject to the BWL Rules and Regulations for Electric Service incorporated herein by this reference.

Availability - This rate is available to any customer desiring secondary voltage for any purpose when the electrical requirements are supplied at one point of delivery through one metering installation and the billing demand is 15 kW or more. The limitation to secondary-voltage service may be waived in instances where the character of the electric load at the premises served has changed substantially. This rate is not available for standby or emergency services.

Nature of Service - The service is alternating current, 60 hertz, single phase or three phase. The secondary voltage is determined by the Board of Water and Light (BWL).

The Reactive Power Charge shall be applicable to customers who have reactive kilovar hour (kvarh) metering installed in accordance with BWL Rules and Regulations regarding power factor.

Minimum Bill - The minimum bill is the basic service charge included in the monthly rate.

Tax Adjustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the BWL property, or its operation, or the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases.

Billing Demand - The billing demand shall be the kW supplied during the 15-minute period of maximum use during the month.

Metering - Where the BWL elects to measure the service on the primary side of the transformer, the metered kW and kWh quantities thus measured will be reduced by 3% for billing purposes to adjust for transformer losses. Where the customer receives service through more than one metering installation, the consumption as registered by the different metering installations will not be combined for billing purposes, but will be computed and billed separately.

Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill that is not paid on or before the due date.

Application Charge - A $7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the BWL.

Rules and Regulations - Service under this rate is subject to the BWL Rules and Regulations for Electric Service incorporated herein by this reference.

Availability - This rate is available to any customer desiring primary voltage service when the electrical requirements are supplied at one point of delivery through one metering installation (except as provided below for Multiple Delivery Point Aggregation) and the billing demand is 100 kW or more. This rate is not available for standby or emergency service.

Nature of Service - The service is alternating current, 60 hertz, three phase. The primary voltage is determined by the Board of Water and Light (BWL).

The Reactive Power Charge shall be applicable to customers who have reactive kilovar hour (kvarh) metering installed in accordance with BWL Rules and Regulations regarding power factor.

Minimum Bill - The minimum bill is the basic service charge included in the monthly rate.

Tax Adjustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the Board's property, or its operation, or the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases.

On-Peak Billing Demand: The On-Peak Billing Demand shall be the kW supplied during the 15-minute period of maximum use during the On-Peak Period during the month.

Maximum Demand: The Maximum Demand shall be the kW supplied during the 15-minute period of maximum use during the month whether on-peak or off-peak.

Schedule of on-peak and off-peak periods - The On-Peak Period shall be from 10:00 a.m. until 6:00 p.m., Monday through Friday. All other hours shall comprise the Off-Peak Period.

Multiple Delivery Point Aggregation - The 15-minute period demands of multiple delivery points of a customer may be summed for determination of the total On-Peak Billing Demand under the following conditions: (a) the Maximum Demand at each delivery point must equal or exceed 100 kW; (b) the total On-Peak Billing Demand shall not be less than 4,000 kW; and (c) the customer shall agree to a service contract with the BWL for the customer's full electrical service requirements at the aggregated delivery points for a period of not less than five (5) years. Aggregation shall be applicable for determination of the On-Peak Billing Demand only. All other charges, including the Basic Service Charge and Maximum Demand, shall apply to each delivery point independently.

Metering - When the BWL elects to measure the service on the secondary side of the transformers, the metered kW and kWh quantities thus measured will be increased by 3% for billing purposes to adjust for transformer losses. Where the customer receives service through more than one meter installation, consumption as registered by the different meter installations will not be combined for billing purposes, but will be billed and computed separately except as provided for in Multiple Delivery Point Aggregation.

Equipment Supplied by Customer - The customer shall be responsible for furnishing, installing and maintaining all necessary transforming, controlling and protective equipment required for service beyond the BWL primary-voltage delivery point. At the sole option of the BWL, a customer may lease such transformers or other equipment from the BWL under terms established by the BWL.

Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill that is not paid on or before the due date.

Application Charge - A $7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the BWL.

Rules and Regulations - Service under this rate is subject to the BWL Rules and Regulations for Electric Service incorporated herein by this reference.

Availability - This rate is available to any political subdivision or agency of the State of Michigan desiring service for potable water pumping and associated potable water production equipment when the entire electrical requirements are supplied at one point of delivery through one meter. This rate is not available for emergency, standby, or auxiliary service.

Nature of Service - The service is alternating current, 60 hertz, three phase. The secondary or primary voltage is determined by the BWL.

Minimum Bill - The minimum bill is the basic service charge included in the monthly rate.

Tax Adjustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the BWL property, or its operation, or the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases.

Metering - Where the BWL elects to measure the service on the primary side of the transformers serving the customer, the metered kWh thus measured will be reduced 3% for billing purposes to adjust for transformer losses.

Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill that is not paid on or before the due date.

Application Charge - A $7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the BWL.

Rules and Regulations - Service under this rate is subject to the BWL Rules and Regulations for Electric Service incorporated herein by this reference.

Availability - This rate is available to any customer desiring primary voltage service when: (a) the electrical requirements are supplied at one or more points of delivery as provided below for Multiple Delivery Point Aggregation; (b) where the total On-Peak Billing Demand is 25,000 kW or more; and (c) the customer agrees to a service contract with the BWL for the customer's full electrical service requirements at the applicable delivery points for a period of not less than ten (10) years. This rate is not available for standby or emergency service.

Nature of Service - The service is alternating current, 60 hertz, three phase. The primary voltage is determined by the Board of Water and Light (BWL).

Minimum Bill - The minimum bill is the basic service charge included in the monthly rate.

Tax Adjustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the Board's property, or its operation, or the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases.

On-Peak Billing Demand: The On-Peak Billing Demand shall be the total kW supplied to all applicable delivery points during the 15-minute period of maximum use during the On-Peak Period during the month. (See Multiple Delivery Point Aggregation.)

Maximum Demand: The Maximum Demand for each delivery point shall be the kW supplied during the 15-minute period of maximum use during the month whether on-peak or off-peak.

Schedule of on-peak and off-peak periods - The On-Peak Period shall be from 10:00 a.m. until 6:00 p.m., Monday through Friday. All other hours shall comprise the Off-Peak Period.

Multiple Delivery Point Aggregation - The 15-minute period demands of multiple delivery points of a customer shall be summed for determination of the total On-Peak Billing Demand under the following conditions: (a) the Maximum Demand determined at each delivery point must equal or exceed 1,000 kW; and (b) the total On-Peak Billing Demand shall not be less than 25,000 kW. Aggregation shall be applicable for determination of the On-Peak Billing Demand only. All other charges, including the Basic Service Charge and Maximum Demand, shall apply to each delivery point independently.

Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill that is not paid on or before the due date.

Application Charge - A $7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the BWL.

Rules and Regulations - Service under this rate is subject to the BWL Rules and Regulations for Electric Service incorporated herein by this reference.

Availability - This rate is available to any customer located within the Board of Water and Light (BWL) service area for dusk to dawn lighting of customer’s premises. The BWL furnishes and maintains all lights. The installation will overhang private property from existing or new poles set at points accessible to BWL construction and maintenance equipment. This rate is not available for purposes of street, highway, or public thoroughfare lighting.

In the event additional facilities or rearrangement of existing facilities is required, the BWL shall install, operate and maintain such facilities for the following monthly charges.

Tax Adjustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the Board's property, or its operation, or the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases.

Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill that is not paid on or before the due date.

Rules and Regulations - Service under this rate is subject to the BWL Rules and Regulations for Electric Service incorporated herein by this reference.

Service Contract - A written service agreement shall be entered into to take BWL service for a term of years determined as follows:

In the event the customer discontinues service before the end of the agreement term, the established rate for the remaining portion of the agreement shall immediately become due and payable. The BWL will replace lamps or make repairs when practicable after the customer has reported that the installation requires servicing. Such replacements and repairs will be made during regular working hours. The BWL may refuse or restrict the service provided in this rate to seasonal type customers and/or may require such customers to pay for the service annually in advance where the permanency of the customer is doubtful or has not been demonstrated by the customer. If relocation, including adjustment, of the outdoor protective light or relocation of other facilities used in connection with the light is desired by the customer during the term of the contract, the BWL will provide this service, if feasible, at the customer’s expense.

Availability - This rate is available to any political subdivision or agency of the State of Michigan desiring unmetered secondary service for operating traffic lights installed on streets or highways for traffic control and guidance.

Nature of Service - The service is alternating current, 60 hertz, single phase, 120/240 nominal volts

The actual labor, material, miscellaneous and indirect charges experienced maintaining and relamping traffic signals during the preceding month.

Minimum Bill - The minimum bill is the basic service charge included in the monthly rate.

Tax Adjustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the Board's property, or its operation, or the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases.

Determination of Active Load - The active load of flasher lamps or cyclically operated traffic control lamps shall be 50% of total wattage of all lamps used during one complete cycle of operation. The active load of continuous, non-intermittent steady burning lamps shall be 100% of the total wattage of all lamps used.

Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill that is not paid on or before the due date.

Rules and Regulations - Service under this rate is subject to the BWL Rules and Regulations for Electric Service incorporated herein by this reference.

Availability - This rate is available to any customer desiring service for commercial/industrial space conditioning and/or electric water heating furnished through a separate meter to which no other electrical device except electric space heating, electric air conditioning, humidity control equipment or electric water heating equipment may be connected. Electric space heating will be considered to include heating by light system provided the primary means of space heating at the time of maximum heating requirements will be furnished by the lighting system with the balance of the heating requirements furnished by supplementary electric heating equipment. This rate is not available to new applications for heat for light systems received after March 1, 1979. This rate is not applicable to the use of electricity for electric air conditioning unless the customer has permanently installed electric space heating equipment and uses it as the principal source of space heating, or to the use of electricity for occasional or seasonal substitute for another method of water heating.

Nature of Service - The service is alternating current, 60 hertz, single phase at Board of Water and Light (BWL) available secondary voltage. Three phase service will be furnished at BWL option.

Minimum Bill - The minimum bill is the basic service charge included in the monthly rate.

Tax Adjustment - Bill shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the BWL property, or its operation, or the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases.

Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill that is not paid on or before the due date.

Application Charge - A $7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the BWL.

Rules and Regulations - Service under this rate is subject to the BWL Rules and Regulations for Electric Service incorporated herein by this reference.

Availability - This rate is available to any single family or multifamily dwelling of 4 units or less when the entire electric requirements are supplied at one point of delivery through the same meter. The customer must be 65 years of age and head of the household being served. Service to appurtenant buildings may be taken through the same meter.

Service under this rate is not available to any single family or multifamily dwelling of 4 units or less unit when a portion of the residence or dwelling unit is used for commercial, industrial, or resale purposes unless the wiring is so arranged that service for residential and non-residential purposes are metered separately.

Customers taking service under this rate shall provide evidence of age and contract with the Board of Water and Light (BWL) to remain on this rate for at least twelve (12) months.

Nature of Service - The service is alternating current, 60 hertz, single phase, 120/240 nominal volts.

Minimum Bill - The minimum bill is the basic service charge included in the monthly rate.

Tax Adjustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the BWL property, or its operation, or the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases.

Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill that is not paid on or before the due date.

Application Charge - A $7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the BWL.

Rules and Regulations - Service under this rate is subject to the BWL Rules and Regulations for Electric Service incorporated herein by this reference.

Availability - Available to any political subdivision or agency of the State of Michigan for street lighting service for any system consisting of one or more luminaires where the BWL has an existing distribution system with secondary voltage available. Luminaires may be installed with no limitations as to spacing between luminaires. Where an overhead line extension is required to serve one or more luminaires, the BWL will furnish 350 linear feet of line extension per luminaire served from such extension. A special agreement will be required if more than 350 linear feet of line extension per luminaire is required.

Nature of Service - The BWL will furnish, install, own, operate, and maintain all equipment comprising the street lighting system, and supply the unmetered energy. The BWL reserves the right to furnish service from either a series or multiple system or both.

Annual Rate- The annual rate per luminaire with fixture and setting, payable in twelve (12) monthly installments, shall be as follows;

Customer Contribution - The annual rates are based on fixtures normally stocked by the BWL, and installed utilizing normal construction techniques. The BWL may, at its option, upon customer request install a street lighting system not covered by the rates below. The customer, after installation, will be required to make a one time contribution equal to the difference between the actual installed cost and the BWL estimated installed cost of a standard installation. The annual unit charge for each luminaire will then be as stated below.

Unit Replacement - The BWL may, at its option, upon customer request replace existing street light units. After installation, the customer shall make a one time contribution equal to the undepreciated value of the unit plus the cost of removal.

Special Terms and Conditions - The BWL reserves the right to make special contractual arrangements as to termination charges, contributions in aid of construction, term or other special considerations when the customer requests service, equipment or facilities not normally provided under this rate.

Tax Adjustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the BWL property, or its operation, or the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases.

Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill that is not paid on or before the due date.

Rules and Regulations - Service under this rate is subject to the BWL Rules and Regulations for Electric Service incorporated herein by this reference.

Nature of Service - The BWL will connect the customer’s equipment to BWL lines, furnish the control equipment, supply the unmetered energy, control the burning hours of the lamps, provide normal replacement of luminaire refractors, control devices and lamps. The customer will furnish, install and own all equipment comprising the street lighting system, including, but not limited to the overhead wires or underground cables between luminaires and the supply circuits extending to the point of attachment with the BWL . All maintenance and replacement of the customer’s equipment except normal lamp and glass replacement shall be paid by the customer. The BWL reserves the right to furnish service from either a series or multiple system or both.

Annual Rate- The annual rate per luminaire, payable in twelve (12) monthly installments, shall be as follows:

Maintenance Charge - The actual labor, material, miscellaneous and indirect charges experienced maintaining street light units during the preceding month.

Combined Rates - The annual rate for units consisting of more than one luminaire shall be the appropriate combination of individual unit charges above.

Tax Adjustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the BWL property, or its operation, or the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases.

Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill that is not paid on or before the due date.

Rules and Regulations - Service under this rate is subject to the BWL Rules and Regulations for Electric Service incorporated herein by this reference.

ATTACHMENT B

Availability - This rate is available to any customer receiving service from the Board of Water and Light (BWL) steam distribution system with a maximum gauge pressure of fifteen pounds per square inch (15 psi). Steam services at gauge pressures above 15 psi but not exceeding 100 psi, when available, may be supplied at the option of the BWL or upon request by the customer.

Nature of Service - Saturated steam up to a maximum gauge pressure of 15 psi except as indicated above.

Surcharge - A surcharge of ten (10) percent shall be added to the above rates for steam service supplied upon customer's request for service at gauge pressure above 15 psi but not exceeding 100 psi.

Fuel Cost Adjustment - This rate is subject to a Fuel Cost Adjustment factor added to the above charges and calculated as defined on a separate rate schedule incorporated herein by this reference.

Amine Treatment Adjustment - The amine treatment adjustment allows for the monthly adjustment of rates to reflect the actual cost incurred due to amine feed. The factor shall be applied to each 1000 pounds (lbs) billed. The factor shall consist of 1.124 times the weighted average amine cost per 1000 lbs treated during the previous month.

Tax Adjustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the BWL's property, or its operation, or the production and/or sale of steam, to offset any such cost and thereby prevent other customers from being compelled to share such local increases.

Minimum Charge - The Basic Service Charge included in the rate except that Special Minimum Charges shall be billed when the revenue received does not adequately compensate the BWL for the cost of furnishing service.

Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill which is not paid on or before the due date.

Reconnect Charge - A reconnect charge shall be added to any account which discontinues and reconnects service at the same address within a twelve (12) month period. The reconnect charge is specified in the BWL Rules and Regulations for Steam Service.

Rules and Regulations - Service under this rate is subject to the BWL Rules and Regulations for Steam Service which are incorporated herein by this reference.

Availability: This rate is available to any customer engaged in mining or manufacturing and receiving steam at any BWL plant wall at a minimum gauge pressure of 250 psi. Service will be provided upon customer entering into a steam supply contract with the BWL. Terms and conditions of the contract may vary due to customer requirements and the impact on BWL facilities.

Tax Adjustment: Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, or any other charges against the BWL's property. or its operation, or the production and/or sale of steam, to offset any such cost and thereby prevent other customers from being compelled to share such local increases.

Billing Demand: The billing demand is the maximum demand (lb/hrs) supplied during the 15 minute period of maximum use during the month, but not less than the contract demand.

Delayed Payment Charge: A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill which is not paid on or before the due date.

Rules and Regulations: Service under this rate is subject to the BWL Rules and Regulations for Steam Service which are incorporated herein by this reference.

Availability - This rate is available to any customer receiving service from the Board of Water and Light (BWL) steam transmission or distribution system with a gauge pressure in excess of 100 psi. Service will be provided upon customer entering into a steam supply contract with the BWL. Terms and conditions of the contract may vary due to customer requirements and the impact on BWL facilities. This service may include both firm and curtailable service.

Fuel Cost Adjustment - This rate is subject to a Fuel Cost Adjustment factor added to the charges and calculated as defined on a separate rate schedule incorporated herein by this reference.

Tax Adjustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the BWL's property, or its operation, or the production and/or sale of steam, to offset any such cost and thereby prevent other customers from being compelled to share such local increases.

Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill which is not paid on or before the due date.

Rules and Regulations - Service under this rate is subject to the BWL Rules and Regulations for Steam Service which are incorporated herein by this reference, unless superceded by the terms and conditions of the customer contract.

Availability - This rate is available to any single-family or multifamily dwelling of 4 units or less when the entire service requirements are supplied at one point of delivery through one meter.

Service under this rate is not available to any single-family or multifamily dwelling unit of 4 units or less when a portion of the dwelling unit is used for commercial, industrial, or resale purposes unless the service is so arranged that residential and non-residential purposes are metered separately.

Nature of Service - Saturated steam up to a maximum gauge pressure of 15 psi. Steam services at gauge pressures above 15 psi but not exceeding 100 psi, when available, may be supplied at the option of the BWL or upon request by the customer.

Tax Adjustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the BWL's property, or its operation, or the production and/or sale of steam, to offset any such cost and thereby prevent other customers from being compelled to share such local increases.

Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill which is not paid on or before the due date.

Rules and Regulations - Service under this rate is subject to the BWL Rules and Regulations for Steam Service which are incorporated herein by this reference.

The Fuel Cost Adjustment permits the monthly adjustment of rates for the costs of fuel incurred in supplying steam to customers. All general and industrial service rates are subject to the Fuel Cost Adjustment. In applying the Fuel Cost Adjustment the applicable rate per Mlb shall be increased or decreased by the amount of the current Fuel Cost Adjustment. The following definitions and procedures will be followed in calculating the monthly Fuel Cost Adjustment.

Fuel Cost Adjustment - the amount per Mlb by which the applicable rates shall be adjusted for billing in each month.

Fuel Costs - those costs incurred in supplying steam. Such costs include fuel burned. The cost of fuel burned shall include the delivered cost of fuel (base cost, escalations, premiums/penalties, transportation, demurrage), outside lab fees and other outside costs related to fuel procurement, and fuel additives such as freeze proofing.

Over/Under Recovery - the difference between actual Fuel Costs for prior months and the amount of fuel cost recovered by means of the Base Cost of Fuel and the Fuel Cost Adjustment. The Over/Under Recovery shall be added to the Fuel Costs for purposes of computing the Fuel Cost Adjustment for each month.

Base Cost of Fuel - the average Fuel Cost included in the fuel rates of the various rate schedules. Such amount shall not be recovered by means of the Fuel Cost Adjustment. The current Base Cost of Fuel is $3.2131 per thousand pounds of steam (Mlb) sold.

Estimated Fuel Cost shall be projected for a twelve-month period. Any amount of Over/Under Recovery (positive or negative) shall be added to the Fuel Cost to determine the total cost basis for the Fuel Cost Adjustment. The total cost basis shall be divided by the projected total billed sales for the twelve-month period resulting in the average Fuel cost per Mlb. The Base Cost of Fuel shall be subtracted from the average Fuel cost to result in the Fuel Cost Adjustment.

The Fuel Cost Adjustment shall be reviewed and, as necessary, revised periodically in accordance with the provisions of this schedule, but not less frequently than every twelve months.

MANAGER’S REMARKS

COMMISSIONERS’ REMARKS

Commissioner Cochran stated that he agreed with the General Manager and Commissioner Rios in that public comment was an eye opener for him during this process. He also stated that the general public did not come to rant and rave but were present with conviction to plead their case. Commissioner Cochran also stated that it had an effect on him and he was glad to have had opportunity to go through the process.

Mr. Novick stated that he misspoke when he indicated that management did not have any resolutions. He then stated that the Commissioners needed to approve the amended electric and steam rate increase resolution that will reflect a 35% steam rate increase so that the correct sheets can be put into place. For further details please see Electric and Steam Rate Increases under Resolutions.

Commissioner Callen stated that he would have appreciated 24-hour advance notice so that he may assess it on his own.

Commissioner Rios stated that he could appreciate his point of view but that the rate deliberation is a time set aside to discuss any items relative to the rate increase. He also stated that his resolution was something that he did independently and since they did not discuss their approach during the Committee of the Whole meeting he understood his comment.

Commissioner Callen stated that he also wanted to make another comment in regards to Mr. Novick’s earlier statement regarding the advantages of being a public power company. He went onto state that he did not think that the public realized the advantages of being a public utility as he worked for the MPsc for 25 years and saw the complexity of the process. Commissioner Callen also stated that the rate process oftentimes, involved up to 30 attorneys, 12 parties and corrections made up to 18 months later.

MOTION OF EXCUSED ABSENCE

Motion by Commissioner Rios, seconded by Commissioner Calkins to excuse the absence of Commissioner Robin Smith.

PUBLIC COMMENTS

ADJOURNMENT

On motion by Commissioner Graves, seconded by Commissioner Cochran the meeting adjourned at 6:20 p.m.

[1] Rates apply to existing luminaires only and are not open to new business.

[2] Rates apply to existing luminaires only and are not open to new business except where the BWL elects, at the customer’s request, to install additional luminaires within an area already served by a mercury vapor lighting system.

[3] Rates apply to existing luminaires only and are not open to new business except where the BWL elects, at the customer’s request, to install additional luminaires within an area already served by a mercury vapor lighting system.

[4] Rates apply to existing luminaires only and are not open to new business.

	9/1/06
Basic Service Charge	$4.45		Per customer per month
Commodity Charge		Summer Billing Months of June through October
	$.0659		Per kWh for the first 500 kWh
	$.0703		Per kWh for all over 500 kWh
		Winter Billing Months of November through May
	$.0659		Per kWh for the first 500 kWh
	$.0686		Per kWh for all over 500 kWh

	9/1/06
Basic Service Charge	$15.68		per customer per month

Commodity Charge		Summer Billing Months of June through October
	$.0773		per kWh
		Winter Billing Months of November through May
	$.0744		per kWh

	9/1/06
Basic Service Charge	$33.45		per customer per month
Capacity Charge	$9.15	Per kW for all kW of Maximum Demand
Commodity Charge		Summer Billing Months of June through October
	$.0412		Per kWh
		Winter Billing Months of November through May
	$.0377		Per kWh

	9/1/06
Basic Service Charge	$83.64		per customer per month
Capacity Charge	$7.42	Per kW for all kW of On-Peak Billing Demand, plus
	$2.46	Per kW for all kW of Maximum Demand
Commodity Charge		Summer Billing Months of June through October
	$0.0362	Per kWh for all kWh during the On-Peak Period, plus
	$0.0327	Per kWh for all kWh during the Off-Peak Period, plus
		Winter Billing Months of November through May
	$0.0345	Per kWh for all kWh during the On-Peak Period, plus
	$0.0327	Per kWh for all kWh during the Off-Peak Period

	9/1/06
Basic Service Charge	$10.45	Per customer per month
Commodity Charge	$.0586	Per kWh

MINUTES OF THE BOARD OF COMMISSIONERS’ SPECIAL MEETING

PUBLIC COMMENTS

COMMUNICATIONS

COMMITTEE REPORTS

Resolution-2006-8-4

Public Comment

RATE INCREASE DELIBERATIONS

RESOLUTIONS

Resolution-2006-8-6

INTERIM INTERNAL AUDITOR SELECTION

Resolution-2006-8-7

ELECTRIC AND STEAM RATE INCREASES

Commodity Charge

Reactive Power Charge

Reactive Power Charge

Basic Service Charge

Capacity Charge

Commodity Charge

Reactive Power Charge

Metal Halide

Type of Facilities

Commodity Charge

Basic Service Charge

Commodity Charge

Basic Service Charge

Commodity Charge

None

ATTACHMENT B

MANAGER’S REMARKS

COMMISSIONERS’ REMARKS

MOTION OF EXCUSED ABSENCE

PUBLIC COMMENTS

ADJOURNMENT

	9/1/06
*Basic Service Charge*	$261.36	per delivery point per month

*Capacity Charge*	$8.36	per kW for all kW of On-Peak Billing Demand, plus
	$1.57	per kW for all kW of Maximum Demand

$0.0314	per kWh for all kWh during the On-Peak Period, plus
$0.0272	per kWh for all kWh during the Off-Peak Period, plus

$0.0301	per kWh for all kWh during the On-Peak Period, plus
$0.0272	per kWh for all kWh during the Off-Peak Period

High Pressure Sodium		9/1/06
	100 W 250 W 400 W	$9.45
		$15.94
		$17.04

		9/1/06
35-foot wood poles including span of overhead secondary extension	$12.15		Per pole
37-foot concrete pole including span of overhead secondary extension	$17.78		Per pole
Other facilities, hand set poles, or rearrangement of existing facilities	1.67%		of estimated cost

(a)	One year, if additional facilities are not required, or
(b)	Three years, if additional facilities are required
(c)	Five years, for metal halide lamps or if monthly charges calculated at 1.67% of estimated cost,
(d)	Ten years, if special contractual arrangements are made.

	9/1/06
Basic Service Charge	$2.09	Per customer per month
Commodity Charge	$.0324	Per watt of active load per month

	9/1/06
*Basic Service Charge*	$20.91

Commodity Charge	Summer Billing Months of June through October
	$.0886 per kWh

	Winter Billing Months of November through May
	$.0550 per kWh

High Pressure Sodium Luminaire		9/1/06
	70 W	$71
	100 W	$80
	150 W	$93
	250 W	$114
	400 W	$145
	1000 W	$297

Metal Halide
	400 W 1000 W 1500 W	$24.62
		$42.58
		$59.10

Mercury Vapor Luminaire[2]
	100 W	$76
	175 W	$91
	250 W	$107
	400 W	$137
	1000 W	$260

Metal Halide Luminaire
	175 W	$159
	250 W	$181
	400 W	$183
	1000 W	$355
	1500 W	$545

	9/1/06
Wood Pole – Overhead Service	None
Wood Pole – Underground Service	$82
Concrete Pole – Overhead Service	$130
Concrete Pole – Underground Service	$130
Post Top	$82
Historic – Single Top	$269
Large Historic – Dual Top	$787
Small Historic – Dual Top	$559
Wall/Tunnel – 8760 hours	$114
Wall/Tunnel – 4200 hours	$69
Bollard	$267

	9/1/06
Basic Service Charge	$ 9.45		per customer per month
Commodity Charge		Billing Months of June through November
	$ 9.38		per 1000 lbs. for the first 200,000 lbs.
	$ 9.92		per 1000 lbs. for all 1000 lbs. over 200,000 lbs.
		Billing Months of December through May
	$ 9.52		per 1000 lbs for the first 200,000 lbs.
	$10.06		per 1000 lbs. for all 1000 lbs. over 200.000 lbs.

	9/1/06
Demand Charge:	$1.08 per pound per hour (lb/hr) for all lb/hrs of contract demand

	$ .95 per pound per hour (lb/hr) for all lb/hrs exceeding contract demand

Commodity Charge:	$5.24 per thousand pounds (Mlb)

	9/1/06
Basic Service Charge	$7.00		per customer per month
Commodity Charge		Billing Months of June through November
	$6.95		per 1000 lbs. for the first 200,000 lbs.
	$7.35		per 1000 lbs. for all 1000 lbs. over 200,000 lbs.
		Billing Months of December through May
	$7.05		per 1000 lbs for the first 200,000 lbs.
	$7.45		per 1000 lbs. for all 1000 lbs. over 200.000 lbs.