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 27, 2006 AT 4:30 P.M.

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

Present:                        Commissioners Bloomquist, Raukar, Park, and Muskovitz.       

Absent:             Commissioner Sipola.      

Also Present:    Terry Leoni - General Manager; Bill Hafdahl - Director-Finance & Administration; Sue Lalli - Supervisor-Public Relations / Customer Service; Rob Raplinger, City Councilor. 

Moved by Bloomquist and supported by Muskovitz that financial Resolution No. 5093 authorizing the payroll dated November 22, 2006 in the amount of $97,026.14, checks #44553 through #44574, and direct deposits #9970 through #10022 and bills dated November 14, 2006 through November 27, 2006 in the amount of $382,999.42, checks #74975 through #75065, and wire and electronic transfers in the amount of $376,713.52 and the minutes of the regular Commission meeting held on November 13, 2006 be approved as presented.  Motion carried.

At 4:35 p.m. Commissioner Park arrived and presided over the remainder of the meeting.

General Manager Leoni reported that the first fire for the new Biomass boiler is scheduled for   the week of December 18, 2006.  The boiler will be in commercial operation by December 31, 2006 and will be producing under the PPA.  Metering will be done in mid-December.  The project remains on schedule and on budget. 

General Manager Leoni reported on the new Wholesale Power Agreement with Minnesota Power currently being prepared.  The new Agreement should be completed and ready for Commission approval at the December 11, 2006 meeting.  The new Agreement will be a ten-year agreement and will provide 100% of the electrical needs of the City of Virginia.  A Finance Committee meeting of the Committee of the whole will be held at 3:30 p.m. on December 11, 2006 to review the Agreement as well as the final 2007 Budget for the Department. 

Mr. Leoni reported management is working on a contract with Minnesota Power on the Department’s sale of excess electrical capacity.  Currently it appears Minnesota Power will pay the Department more than what a third party negotiator is indicating they can pay for excess capacity.  An update will be provided at the Finance Committee Meeting of the Whole.

After discussion, it was moved by Raukar and supported by Muskovitz that the only Commission meeting to be held in December 2006 will be the December 11, 2006 meeting and the second Commission meeting scheduled for December 25, 2006 would not be held due to the Christmas holiday.  Motion carried.

The Director of Finance and Administration, Bill Hafdahl, presented an overview of the October 2006 financial reports.  The financial statements presented at this meeting were reviewed and items affected by the open insurance claims due to the July 2006 fire in the Power Plant were noted. 

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

ATTEST:                                                                     APPROVED:

_______________________________                                  _______________________________

Matt Raukar, Secretary                                                            Jackie Park, Vice President