Minnesota Valley Electric Cooperative, Your Touchstone Energy Cooperative

Integrity Accountability Innovation Commitment to Community

June 2004

USP Structural Connectors

Electrical power is a little bit like the air we breathe: you dont really think about it until it's missing. Its only during a power failure that you realize how important power is in your daily life. The USP Structural Connectors plant in Montgomery knows all too well what a loss of power can do to their business. That's why they recently purchased a 750 kW Caterpillar standby generator. USP Structural Connectors is a manufacturer of construction hardware for the building industry. With downtime and loss of productivity, even a short outage can add up to significant losses. The rate savings and peace of mind knowing we will never be without

Reaping the Benefits of a Standby Generator

power was the key in the decision to purchase a standby generator said Joe Gores, USP Plant Manager. Costs and Payback The actual installed cost of the generator was $217,000 ($239,000 for the generator and a $22,000 rebate from MVEC). Once the generator was up and operational, USP was put on our special Large Peak Alert rate. This rate change saves MVEC Vice President of Marketing & Sales stand next to the Generator USP $43,350 every year on installed at the USP Plant in Montgomery. their energy bill! MVECs special generator rate is 30%-40% lower than our rate through this kind of load management program. standard rate for commercial and industrial accounts. In the case of USP, their costs are a full Standby Generation yields big savings for USP and MVEC. Your business can 35% lower. With the rate save too. For more information about savings, the payback was only 5 standby generators and other years. commercial and industrial load management programs, please call How does the program work? When your standby generator is MVEC at (952) 492-8207 or visit our website at www.mvec.net under business installed, MVEC connects a services. EE special receiver which can turn the generator on and off just See page 2 for information on before and after peak electrical Standby Generation from our Key demand times. Account Forum Since a large portion of the cost of electricity is based on peak demand usage, MVEC can significantly lower your electric
Joe Gores, USP Structural Connectors Plant Manager and Tom Kovalak,

Tom Kovalak of MVEC presents Joe Gores of USP Structural Connectors in Montgomery with a $22,000 rebate check for installing a 750 kW Caterpillar Standby Generator.

Standby Generation is Hot Topic at Annual Key Account Forum

You are a Member-Owner of MVEC and Your Opinion Counts

Team up with MVEC for Relay for LIfe

www.mvec.net

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Standby Generation: A Hot Topic at MVEC's 7th Annual Key Account Forum
Nearly 80 local business leaders attended MVECs 7th Annual Key Account Forum on Tuesday, May 11 at Mystic Lake Casino Hotel. The large attendance was due to speakers Rick Lancaster, Vice President of Corporate Services at Great River Energy (GRE); Tom Heuerman, Consultant, Writer & Wildlife Photographer; and Tom Kovalak, Vice President of Marketing and Sales with MVEC. Kovalak also shared information on five member companies who are on MVECs controlled generator program. Attendees of the forum enjoy a great breakfast catered The companies and their savings by Mystic Lake Casino Hotel, one of MVECs largest members. are listed below.
Company Prior Lake High School MCI Arboretum Citgo USP Structural Connectors New Prague Ford Mercury Installed Generator $ $660,500 Annual Savings $ 88,000 Payback 7.5 years

Mr. Lancaster provided insight on how challenges such as fuel costs, purchasing power on the open market and the need for additional generating plants and transmission lines will affect power supply and costs over the next decade. Tom Kovalak of MVEC gave a detailed presentation on the savings of installing standby generation. He spoke of the benefits of standby generation such as reduced rates, savings on wholesale power costs, generation as a reliable backup power source and a 30-40% annual savings. He also informed attendees of the qualifications of participating in the controlled generation program.

Rick Lancaster of Great River Energy gave an informational presentation on the wholesale power market.

$680,000 $ 60,725 $217,000

$119,500 $ 11,300 $ 43,350

5.6 years 5.3 years 5 years

$ 35,950

$ 8,300

4.3 years

Tom Heuerman spoke to attendees about how to create the conditions necessary for peak performance in employees and how high energy leadership can impact their business.

Qualifications for MVECs Controlled Generation Program

Generator must be sized to handle the facilities entire load Facility load needs to be within our peak (5-10 p.m.) System is controlled by radio receiver which MVEC installs Member keeps generator in good working condition Member supplies and maintains generator fuel No more than 500 hours per year of control time

MVEC hosts the Key Account Forum for the business community in and around its service area. Dan Mehleis, Director of Operations for the Prior Lake Savage Schools commented, I really enjoyed attending the forum. I gathered a lot of information which I can put to use for the school system. The breakfast was great, too! Tom Kovalak added, Our goal is to offer a forum that provides valuable and timely information to both members and nonmembers of the cooperative. If you would like information about MVECs standby generation program please contact MVEC Prior Lake High Schools 2 mW (million at (952) 492-8207 or visit Watt) Cummins Standby Generator saves www.mvec.net. EE them $88,000 annually.

Dairy Princesses are Part of our Electric Co-op.

MVEC salutes all farmers and dairy princesses during National Dairy Month and all year through.

MVEC is Proud to be your Touchstone Energy Cooperative.

www.mvec.net

Your Touchstone Energy Cooperative

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You are a Member-Owner of MVEC and Your Opinion Counts
As a member-owner, your opinion matters at MVEC. In an effort to gather opinions and ideas from our members, MVEC recently conducted a customer satisfaction survey. Included in this survey were four questions to determine our American Customer Satisfaction Index (ACSI) score. ACSI is a national benchmarking organization that tracks trends in customer satisfaction and provides valuable benchmarking insights of consumers views on companies, industry trade associations, utilities and government agencies. Its a partnership of the University of Michigan Business School, the American Society for Quality (ASQ), and the International Consulting Firm, CFI Group. The average national score for investor owned utilities is currently 72%, while the average for member-owned cooperatives is 80%. MVEC outpaced even the cooperative average by achieving a score of 83%! We are very proud of these results. Three thousand surveys were sent to randomly selected members from the MVEC database. In all, 672 members responded to the survey yielding a 22.4% return. This is a very high response rate and we thank those members who responded! Besides the ACSI scores, additional information gathered from the survey will be used to evaluate how our members view our customer service, rates and reliability. When asked how our members viewed their overall experience with MVEC as their utility provider, 98% said we met or exceeded their expectations. Even with this great score, we will continue to work hard on our goals of providing reliable electric service at competitive electric rates while providing customer service to our members that is beyond expectations, said Tom Kovalak, MVEC Vice President of Marketing and Sales. MVEC is your Touchstone Energy Cooperative. EE

10% Off All Your Energy Usage Plus FREE Gasoline!

Save money while staying cool with MVECs Energy Wise PeakShave Air Conditioning Program. How the program works: MVEC mounts an energy management switch on your home near your central air conditioner. The installation is FREE. During peak electricity usage, the switch cycles your central air conditioner on and off. The furnace fan continues to circulate cool air in your home. By cycling air conditioners, the energy demand is reduced. This saves on MVECs wholesale power costs. Receive 10% off your residential energy use every year for the months of June through September.

Ready. Set. Go! View and Pay Your Electric Bill Online Its Quick and Easy with Click-n-Pay
Available Anytime, Anywhere ~ 24/7
Enrollment in this payment plan has grown significantly! Our secure system notifies you by e-mail when your electric bill is posted online. You can also view a full year of detailed billing and payment information. Stop writing checks or mailing your electric bill each month. E-check payments are FREE! Simplify your life with Click-n-Pay
A 2% convenience fee - ($2 minimum) is applied to your next electric bill for credit card payments. Visa or Mastercard accepted.

Sign up by August 1, 2004 and get a $10 gas card to Holiday Station Stores and receive a 10% discount on all residential energy usage from date of sign up through September.

Sign up today at www.mvec.net & complete the secure online form or contact a customer service representative at (952) 492-8300 or (877) 492-6832
This promotion is for new sign-ups only. Participation in this program carries forward every year.

Sign-Up Online @ www.mvec.net www.mvec.net

Your Touchstone Energy Cooperative

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Important Notices and Reminders Team Up with MVEC For Relay For Life
Relay For Life is the American Cancer Societys signature activity. It offers everyone in the community an opportunity to participate in the fight against cancer. Teams of 8 to 15 people take turns walking or running around a track. The goal is to raise money through donations to help the American Cancer Society find a cure. This years celebration will be held July 9-10 at Shakopee High School - Vaughan Field starting at 7:00 p.m. MVEC invites you to participate in this very worthwhile event! Please consider forming a team and joining us the evening of July 9th in Shakopee or sending a tax deductible donation. For information on forming teams or sending donations please contact Diane Schoenbauer at MVEC at (952) 492-8292 or e-mail dianes@mvec.net. The deadline for the last report card entry for the 2003-2004 school year is July 16, 2004. Send entries to: MVEC 125 Minnesota Valley Electric Drive Jordan MN 55352

Academic Excellence

MVECs Office will be closed Monday July 5 for Independence Day. Have a safe Holiday!

MVEC will be at the Scott County Fair July 28 - August 1, 2004. Stop by our booth for an ice cold refreshment!

Board Highlights
The monthly meeting of MVECs Board of Directors was called to order at 8:30 a.m. on May 24, 2004. All Directors were present, along with MVEC legal counsel Hap Le Vander and General Manager Roger Geckler. Highlights of the meeting were as follows: Received a progress report on efforts to resolve a new long term wholesale power supply agreement(s). Wholesale power represents 67% of MVEC costs, and the cooperative is seeking agreement(s) to further manage those risks. Heard a report from MVEC Vice President of Energy Services, Marvin Denzer, covering staffing plans for Heartland Engineering Services (HES). HES is jointly owned by MVEC and Wright-Hennepin Electric (Rockford, MN). It was organized to provide both cooperatives a broad range of quality and cost effective engineering support services. The proposed plan reinforces that vision. Heard a report from Touchstone Energy Chief Operating Officer, Jim Bausell, covering the national branding program. Touchstone Energys history, new initiatives, and costs were discussed. Current Editor: Diane Schoenbauer membership includes 600+ electric cooperatives in 44 states. General Manager: Roger Geckler Heard a report from Mark Glaess and Lee Sundberg of the Minnesota Rural Published By: Minnesota Valley Electric Cooperative Electric Association aimed at key legislative issues. Office Hours: M - F; 8:00 a.m. to 4:30 p.m. Customer Service Phone Hours: M - F; 7:00 a.m. to 5:00 p.m. Approved the April 2004 financial report as presented; revenue, expenses Customer Service: (952) 492-2313 (800) 282-6832 and margins are all tracking closely with 2004 budget projections. In Dispatch/Outages: (952) 492-8255 (800) 232-2328 addition, the Board directed Great River Energys power cost adjustment of Minnesota Valley Electric Cooperative $69,000 be absorbed by the cooperative this month. They also authorized 125 Minnesota Valley Electric Drive re-pricing of several loans to minimize long term interest costs. Jordan, MN 55352 The meeting adjourned at 3:30 p.m. Members with questions or comments www.mvec.net info@mvec.net may contact MVECs General Manager, Roger Geckler, at (952) 492-8200, The Electric Eye is printed with or email rgeckler@mvec.net. EE environmentally safe soy based ink
Your Touchstone Energy Cooperative