A REGULAR MEETING OF THE PUBLIC UTILITIES COMMISSION OF THE CITY OF VIRGINIA, MINNESOTA, WAS HELD AT THE OFFICE OF THE DEPARTMENT OF PUBLIC UTILITIES ON monDAY, JANUARY 26, 2009, AT 4:30 P.M.

Commission President Bloomquist called the meeting to order at 4:30 p.m.

Present: Commissioners Bloomquist, Lucarelli, Petroskey, Raukar, and Sipola.

Absent: None.

Also Present: Terry Leoni – General Manager; Bill Hafdahl – Director-Finance & Administration; Sue Lalli – Public Relations / Customer Service Supervisor; Dennis Lindberg and Charles Baribeau – Councilors. Chuck Ramsey, MDN arrived at approximately 4:45 p.m.

Moved by Raukar and supported by Petroskey that financial Resolution #5136 authorizing the payroll dated December 18, 2008 in the amount of $98,513.75, checks #45918 through #45940, and direct deposits #12895 through #12948; and the payroll dated December 31, 2008 in the amount of $102,721.29, checks #45941 through #45963, and direct deposits #12949 through #13002; and the payroll dated January 8, 2009 in the amount of $12,149.13, checks #45964 through #45922; and the payroll dated January 15, 2009 in the amount of $100,499.20, checks #45993 through #46014, and direct deposits #13003 through #13056; and the bills dated December 8, 2008 through January 26, 2009 in the amount of $2,087,275.78, checks #80562 through #80816, and wire and electronic transfers in the amount of $1,470,057.40 be adopted and the minutes of the December 8, 2008 Commission meeting be approved as presented. Motion carried.

General Manager Leoni reported there will be a LEA Meeting in Hibbing, Minnesota on January 27, 2009 at 5:30 p.m. Mr. Leoni also reported that a dialog with Xcel Energy has begun requesting relief on the current contract between LEA and Xcel Energy. As yet no response had been received. Mr. Leoni may also be contacting area Legislators regarding the contract with Xcel and the requested relief. The cost of coal and the increase in transportation rates were reviewed for the Commissioners along with a review of LEA’s cash flow and 2009 production reports reflecting the increased costs.

The December 2008 Monthly Injury Summary Report was reviewed. The Report shows one accident with no lost time during the December 2008 time period.

Moved by Petroskey and supported by Raukar that a Plant Electrician be authorized to attend Electrical Code Training in Brainerd, Minnesota on February 6-7, 2009. Motion carried.

Moved by Raukar and supported by Petroskey that a Director – Operations Production be authorized to attend the Asbestos & Lead Awareness Meeting being held in Proctor, Minnesota on January 27, 2009. Motion carried.

A summary of contract negotiations with AFSCME was included in the Commissioners’ packets. The first mediation session will be held on Thursday, February 5, 2009 at 10 a.m.

Mr. Leoni reported the MPCA has a potential eight (8) violations against the Virginia Utility under consideration at this time. Mr. Leoni will keep the Commission updated on the final notification of any violations.

Mr. Leoni thanked Don Sipola for his years of service on the Utility Commission. A Thank You Plaque was presented and attendees at the meeting were invited to stay for coffee and cake following the meeting.

There being no further business to come before the Commission, Commission President Bloomquist declared the meeting adjourned at 4:58 p.m.

ATTEST: APPROVED:

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Matt Raukar, Secretary Quentin Bloomquist, President