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FOR IMMEDIATE RELEASE
July 29, 2005

RPU Board to Hear Recommendations for Future Power Supply

ROCHESTER, Minn.—The RPU board on Tuesday, July 26, accepted 4-0 the recommendations of the “Electric Utility Baseline Strategy for 2005-2030 Electric Infrastructure.” The utility board also directed staff to proceed with report recommendations for emission controls for the Silver Lake Power Plant, which allows permitting, engineering, and design to begin.

“Unanimous board support for the recommendations show we are on the right track. These solutions are the most economical from three scenarios presented, and are environmentally sound. We look forward to beginning the planning process for the upgrades,” said Larry Koshire, RPU general manager.

The recommendations included $23.8 million in emission control equipment for Silver Lake Power Plant’s Unit #4, the plant’s largest generating unit and $6 million in emission control improvements for Unit #3, the next largest unit.

The report also recommended increased renewable energy investment, more aggressive demand side management or conservation initiatives, and additional peak-time generation capacity in the coming years.

RPU projects rate increases of three percent or less per year for the duration of the plan based on all plan recommendations, as well as transmission investments. The projected increases are independent of any changes in wholesale power costs.