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, NOVEMBER 26, 2007, AT 4:30 P.M.

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

Present: Commissioners Park, Petroskey, Raukar Sipola.

Absent: Commissioner Bloomquist.

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

Moved by Raukar and supported by Petroskey that financial Resolution #5117 authorizing the payroll dated November 21, 2007 in the amount of $103,558.63, checks #45214 through #45235, and direct deposits #11348 through #11401; and bills dated November 13, 2007 through November 26, 2007 in the amount of $815,242.22, checks #77468 through #77553, and wire and electronic transfers in the amount of $284,104.97 and the minutes of the regular meeting held on November 13, 2007 be approved as presented. Motion carried.

The minutes from the October 9, 2007 and the November 20, 2007 meetings of the LEA Board were received and filed along with the Third Quarter Financials.

The Director of Finance / Administration, Bill Hafdahl, reviewed the update on the Natural Gas Pre-purchase Contract received from the Minnesota Consortium of Municipal Utilities placed on the table for the Commissioners. The Contract has been forwarded to the Virginia City Attorney for review and has been reviewed by the attorneys for the Consortium. After review of the Gas Prepay Update dated November 20, 2007 it was moved by Park and supported by Petroskey that Resolution #5118 authorize Management to execute the Natural Gas Pre-purchase Contract as prepared. Motion Carried.

Revisions to the current Application for Service Policy were presented for the first reading. Policy revisions include the requirement for all applications to contain the customer’s social security number or a federal tax identification number along with the presentation of a valid driver’s license or photo ID at the time of application. Waiver of the required customer deposit has been revised to require proof of ownership at the time of application. Policy revisions also reflect payment of all previous unpaid accounts owed by a customer prior to a new account being opened. The revised policy will be acted upon after its second reading at the next regular scheduled meeting of the Commission.

There will be a meeting of the Commission’s Finance Committee, a meeting of the Committee of the Whole, at 4:30 p.m. on Monday, December 3, 2007 to review the 2008 Budget.

Due to the December 2007 holidays, there will be only one meeting of the Utilities’ Commission on December 10, 2007.

Mr. Leoni and Mr. Hafdahl reviewed the Combined Operating Statement and the Production Report, part of the financials contained in the packet for this meeting. Maintenance and operation dollars were reviewed along with sales figures. Mr. Leoni reported an investigation of sections of the steam distribution system is underway to determine their condition along with repairs needed. Utility upgrades are planned for 2008 to coordinate with the City’s projects.

Mr. Leoni reported the November 18, 2007 electrical outage resulted from the loss of an underground transformer that will be rebuilt in 2008. Mr. Leoni also reviewed the loss of steam pressure on November 7 and November 8, 2007 and the repairs made enabling steam to be delivered to customers as quickly as possible.

There being no further business to come before the Commission, Commission President Sipola declared the meeting adjourned at 5:30 p.m.

ATTEST: APPROVED:

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Jackie Park, Vice President Don Sipola, President