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, MAY 14, 2007, AT 4:30 P.M.

Commission Secretary Raukar called the meeting to order at 4:30 p.m.

Present: Commissioners Petroskey, Muskovitz, Park, Raukar.

(Commissioner Park arrived at 4:40 p.m.)

Absent: Commissioner Sipola.

Also Present: Terry Leoni – General Manager; Bill Hafdahl – Director-Finance & Administration; Sue Lalli, Public / Customer Relations Supervisor; Rob Raplinger and Dennis Lindberg - City Councilors – Utility Commission Liaison.

Mr. Leoni noted the customer letter dated May 7, 2007 received regarding a deposit requested from the property owner for 105 2^nd Avenue South along with the response from the Department’s Administrative Review Team requiring the deposit be paid as requested.

Moved by Muskovitz and supported by Petroskey that financial Resolution #5103 authorizing the payroll dated April 26, 2007 in the amount of $92,184.03, checks #44815 through #44835, and direct deposits #10543 through #10595 and the payroll dated May 10, 2007 in the amount of $95,226.32, checks #44836 through #44858 and direct deposits #10596 through #10648; and bills dated April 23, 2007 through May 14, 2007 in the amount of $833,959.15, checks #76056 through #76197, and wire and electronic transfers in the amount of $503,975.96 and the minutes of the regular meeting held on April 23, 2007 be approved as presented. Motion carried.

Moved by Muskovitz and supported by Petroskey to authorize the hiring of Steve Twaddle, Phillip Medure, and Jacob Hart as seasonal fuel handlers. Motion carried.

Moved by Muskovitz and supported by Petroskey to reset the second Commission Meeting for May 2007 to May 29, 2007 at 4:30 p.m. due to the Memorial holiday on May 28, 2007. Motion carried.

Moved by Muskovitz and supported by Petroskey to call a meeting of the Finance Committee of the Utilities Commission Meeting of the Whole at 3:30 p.m. on May 29, 2007 for the purpose of reviewing the 2006 audit report. Motion carried.

Mr. Leoni reviewed the Conservation Improvement Program (CIP) and the amount of electric revenue that must be spent on this Program. A general discussion was held on the items qualifying for use of these funds.

Mr. Leoni reported the #11 biomass boiler will be brought up on Wednesday or Thursday of this week – May 16 or 17, 2007. The issues resulting in a vibration of the boiler at start up has been resolved. Items resulting in fugitive dust are being correct at this time.

There being no further business to come before the Commission, Commission Secretary Raukar declared the meeting adjourned at 4:55 p.m.

ATTEST: APPROVED:

_______________________ ___________________________

Jackie Park, Vice President Matt Raukar, Secretary