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, FEBRUARY 26, 2007, AT 4:30 P.M.

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

Present: Commissioners Petroskey, Muskovitz, Park, Raukar, and Sipola.

Absent: None.

Also Present: Terry Leoni, General Manager; Bill Hafdahl – Director-Finance & Administration; Sue Lalli, Public /Customer Relations Supervisor; Doug Ganoe – Director-Operations Production.

Moved by Park and supported by Raukar that financial Resolution #5098 authorizing the payroll dated February 15, 2007 in the amount of $92,960.42, checks #44710 through #44730, and direct deposits #10284 through #10335 and bills dated February 13, 2007 through February 26, 2007 in the amount of $1,453,034.12, checks #75574 through #75656, and wire and electronic transfers in the amount of $811,490.17 and the minutes of the regular meeting held on February 12, 2007 be approved as presented. Motion carried.

Moved by Park and supported by Raukar that the revised Tuition Reimbursement Policy presented for its second reading be approved as presented. Motion carried.

Moved by Raukar and supported by Park that two members of the engineering staff be authorized to attend the Minnesota Office of Pipeline Safety 2007 Education Conference on April 10, 2007 in Brainerd, Minnesota at an estimated cost of $780.80.

Aye: Commissioners Petroskey, Park, Sipola, Raukar.

Nay: Commissioner Muskovitz. Motion carried.

The General Manager and Director of Finance / Administration reviewed a Preliminary December 2006 Combined Operating Statement – Comparison to Budget detailing insurance proceeds and net revenue over expenditures for the year end. After the annual audit, the 2006 year-end financial reports will be prepared with projected completion March 2007. The Commission requested a comparison with the year-to-date 2005 and year-to-date 2006. Mr. Hafdahl will prepare a Combined Operating Statement with the two years requested reflected on the report.

The General Manager and Director of Operations Production reviewed the modifications to the biomass system presently underway by the contractors and engineering firm for the project. All costs for the modifications have been assumed by the contractors and engineering firm, with no cost to LEA.

There being no further business to come before the Commission, Commission President Sipola declared the meeting adjourned at 5:12 p.m.

ATTEST: APPROVED:

_______________________ ___________________________

Matt Raukar, Secretary Dr. Don Sipola, President