A special meeting of the Council for the City of Crystal Falls was held in the Council Chambers at the City Hall on Monday, June 2, 2008 at 4:00 pm Central Time.

Present: Mayor Hendrickson, Councilors Heikkinen, Valesano, Smokevitch, and Bicigo.

Absent: None

Also present were City Manager Nordeman, City Attorney Lawrence, and City Clerk/Treasurer Olson.

The only visitor in attendance was Chief Electrician David Graff.

The purpose of this special meeting was to discuss and consider the following items:

Mayor Hendrickson led the reciting of the Pledge of Allegiance.

The purpose of this special meeting was to discuss electric utility issues.

Chief Electrician David Graff explained that the City will be receiving a $369,000 credit from WE Energies due to the sale of the Point Beach power plant. He had suggestions on how to use the credit to offset the capacity true up charges and impending rate increases of WE Energies.

Councilor Heikkinen seconded by Mayor Hendrickson moved to set aside the $369,000 credit expected from WE Energies in the electric fund and use it to stabilize future WE Energies rate increases, energy and capacity true ups, and to cover lost revenue created by a rate decrease to the City’s electric customers.

Ayes: Mayor Hendrickson, Councilors Heikkinen, Smokevitch, Valesano, and Bicigo.

Nays: None

Motion carried.

Mayor Hendrickson seconded by Councilor Smokevitch moved to reduce electric rates, pending the receipt of the Point Beach credit from WE Energies, as follows, and further, to re-evaluate these rates on a quarterly basis to keep them at a competitive level below WE Energies:

Residential Rate:
Facilities Charge: $9.00/month
Extra Meter: $1.00/month
Energy Charge: $.076/kwh

Commercial Rate:
Facilities Charge – 1 Phase: $14.50/month
Facilities Charge – 3 Phase: $19.50/month
Extra Meter: $1.00/month
Energy Charge: $.083/kwh

Large Commercial/Industrial Rate:
Facilities Charge: $80/month
Demand Charge: $13.00/KW
Energy Charge – On Peak (8 am to 8 pm): $.060/kwh
Energy Charge – Off Peak (8 pm to 8 am): $.044/kwh
This rate is only for those customers who have consumed more than 30,000 kwhrs during 3 months of the year. It is optional to the customer, however, once signed up, they will need to be in this rate structure for 1 full year.

Ayes: Mayor Hendrickson, Councilors Heikkinen, Smokevitch, Valesano, and Bicigo.

Nays: None

Motion carried.

David Graff reported that Axel Anderson continues to recover from his knee replacement however he will not be returning to work for at least another 6 weeks. Due to this reduction in the electric department work crews Graff requested to continue the employment of Dennis Mitchell.

Councilor Heikkinen seconded by Mayor Hendrickson moved to continue to employ Dennis Mitchell for the next 4 weeks, 24 – 32 hours per week, during Axel Anderson’s extended leave of absence.

Ayes: Mayor Hendrickson, Councilors Heikkinen, Smokevitch, Valesano, and Bicigo.

Nays: None

Motion carried.

David Graff requested the Council consider the extension of a construction credit to all electric customers with the oldest services to encourage the upgrading of these dangerous services from an "A-base" to a "S-base" meter socket to allow for the installation of new meters. These upgrades would make the services safer and more efficient. This matter will be further discussed at the regular meeting on June 9^th. Additionally, Mr. Graff suggested the formation of a committee to examine the replacement of all electric meters with meters capable of being read electronically.

Councilor Smokevitch seconded by Mayor Hendrickson moved to adjourn the meeting.

Motion carried.

Meeting adjourned at 5:25 p.m.