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, MARCH 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; Dennis Lindberg, Carl Baranzelli and Rob Raplinger – City Councilors – Utility Commission Liaisons.

Moved by Raukar and supported by Petroskey that financial Resolution #5100 authorizing the payroll dated March 15, 2007 in the amount of $92,777.61 checks #44752 through #44772, and direct deposits #10388 through #10439 and bills dated March 13, 2007 through March 26, 2007 in the amount of $1,813,698.44 checks #75766 through #75856, and wire and electronic transfers in the amount of $756,169.64 and the minutes of the regular meeting held on March 12, 2007 be approved as presented. Motion carried.

Moved by Raukar and supported by Petroskey that the Director of Operations – Distribution – Electric and Gas, and one Engineering Technician be authorized to attend the 2007 Operations Conference sponsored by the Midwest Energy Association to be held in Ames, Iowa, on August 1-3, 2007 at an estimated total cost of $1,227.87. Motion carried.

Moved by Raukar and supported by Muskovitz to authorize the notice and hiring of four (4) student casuals at the rate of $7.50 per hour for up to sixty-six (66) shifts each. Motion carried.

After review of the bids received it was moved by Raukar and supported by Muskovitz to authorize the purchase of three (3) Ford cab / chassis at a total price including, tax, license, and documentation fees of $57,496.16 and three (3) utility bodies per State Contract #437075 Release T-699(5) at a total price of $59,526.64 which includes one (1) fully encased gas truck body and two (2) crane bodies, one for the steam crew and one for the water crew as budgeted. Motion carried.

The Director of Finance / Administration, Bill Hafdahl, presented an overview of a potential gas purchasing program the Utility is working on with the MMUA. Several Municipal Utilities are currently working through the start up of a program that would allow prebuying of natural gas affording the member Utilities a discount per unit of gas in the vicinity of $.45 - $ .50. Updates on the program will be presented to the Commission as they develop.

The General Manager, Terry Leoni, reported the customer reporting sand in her water at the last Commission meeting was experiencing a problem with her water tank and the matter was taken care of by the customer. The insurance carrier for the power plant fire and turbine claims met at the Utility today and $300,000 will be sent to the Utility towards the total claim. Management is still working with the insurance carrier on future payments towards the claims. Minnesota Power is still working with the Utility on possible additional Biomass generation; an ID fan in the plant needs repair; and only one more water break has been reported in the last two weeks as the weather has continued to warm up.

There being no further business to come before the Commission, Commission President Sipola declared the meeting adjourned at 5:05 p.m.

ATTEST: APPROVED:

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Jackie Park, Vice President Dr. Don Sipola, President