General Mgr

Mission Valley Power (MVP) has maintained low and stable rates for many years. Our Residential rates have been second lowest in the State. Each year MVP managers and the Utility Board prepare the operating budget. Measures are taken to ensure that cost allocations remain fair to all customers and that operational money saving techniques is utilized. It has been 16 years since MVP has raised its rates due to the increasing cost of providing service. Once again, the cost of doing business today has made it a necessity to incorporate a minimal rate increase.

The change increased the basic monthly charge (by $2.50 per meter) in all rate classes except General services with Demand Single Phase (by $5.00 per meter). The residential monthly minimum increased to $12.50/month. The rate change also increased the horsepower rate $0.85/horsepower and the annual minimum charge for the irrigation rate class is now $162.00/year. All outside lighting (area lights & street lights) increased as well. The energy rate (kilowatt hours) is not part of this proposed rate increase.

Even with the rate increase, Mission Valley Power’s residential rate remains the second lowest in Montana.

Mission Valley Power believes that the majority of its customers have confidence that we are fair and diligent in our work practices. MVP will continue to provide reliable electric power service to its customers consistent with sound business principles.

Each year MVP receives a power adjustment from PPL Montana for our Kerr Power allocation. Annually MVP passes this thru to the customer. This year’s adjustment for the residential rate class energy charge is $0.0496 to $0.0497/kWh. This results in a $0.12 increase for a customer using 1200 kWh per month.

Customer Service Office Changes

St Ignatius Office will be open the first five working days of each month and all remaining Tuesdays of the Month. When Tuesday falls on a Holiday, the office will be open the next day. A new drive-thru drop box has been added outside this office for your convenience.

New drop boxes in the Polson area have been established for your convenience at the CS&K Tribes Natural Resource Office on Main Street and 1^st Interstate Bank drive-thru.

Existing drop boxes are still located at Super One and Eagle Bank drive-thru in Polson, Mission Mart, Harvest Foods in Ronan, and outside MVP’s Hot Springs and Pablo offices.

A total of 5,496 Automated Meters (AMR) have been installed in the Pablo, Polson, and Charlo areas and they are performing well.

Next AMR meters will be installed in the South Shore to Yellow Bay Areas. It is anticipated that the AMR system will go live around the first of March 2008.

The advantages to AMR are: MVP gets daily reads from your meter, we can verify that you have power to the meter-base from the transformer, we can track blinks (voltage changes), and MVP can do outage assessments, to name a few.

MVP plans on doing the Ravalli, Arlee, Hot Springs and Camas Prairie areas next.

MVP will accept applications for the MVP Employees’ Student Award beginning in February. All students are eligible to apply that have resided in MVP’s service area for the last five years. Applications will be available on February 1^st2008 at all schools, SKC College, and all MVP Offices. 2007 MVP Employees’ Student Award recipients were: eleven middle school students, eighteen high school students, and five college students from Arlee, Charlo, Hot Springs, Niarada, Polson, Ronan, and St. Ignatius.

MVP’s Operation Plan was last updated effective May 1, 2006. The newest changes continue to offer detailed clarification of policies and procedures. Clarification of policies and procedures were implemented after public feedback and advertisement. The newest revision includes a change in the Aid-to-Construction contribution. Line Extension Credits will no longer be included for the cost and installation of transformers. Mission Valley Power still provides a $500 aid-to-construction credit towards cost of providing power to a new service. MVP will cover all transformer replacement costs.

Rate Class and Service Fees were also changed. All 400-amp meter services will be placed in the General Service Demand rate class this includes Residential.

Service Fees for all past due accounts with more than one location billed will be applied to the home location (owner/manager).

A $25.00 Service Fee will be charged to dishonored checks, e-checks, or credit card denials.

The Manual still includes detailed information about customer incentives that MVP offers, and information on assistance programs. Our incentive programs, for those who have good pay history, have been expanded to include additional rate classes, not just residential customers. The Customer of the Month incentive program will credit two random Residential accounts $20, two random General Services Without Demand accounts $50, and two General Services With Demand accounts $100. In addition, MVP will credit ten random Irrigation customers $100 annually if the usage bill is paid by the due date.

Congratulations to the November 2007 Customer of the Month credit awardees: Residential: Betty Mae Schall, Jane Nelson, Gen Service w/o Demand: Mission Valley Animal Shelter, Vernon E Reum: Gen Service w/Demand: Flathead Dock & Pile Inc., Country Foods Inc.

MVP looked at electric, wood, propane and fuel oil in December 2007 and compared British thermal unit (Btu) in calculating heat cost by system. In this comparison we found:

As you make plans to replace old or purchase a new heating system, long range cost analysis will help you make the right equipment and best-cost choices. MVP is willing to share what our expected electric long term costs will be.

Mission Valley Power has compared heating water with the electric in-line water heater, the electric 52-gallon water heater and propane water heater. The results were the in-line is cheapest to run but approximately double the cost to purchase and if you run two in line heaters your electric use and demand charge will result in higher costs. At today’s propane costs the electric 52-gallon hi-efficiency tank is the way to go. For more information call any of the MVP offices.

MVP and BPA partnered up to offer many options toward conservation. Mission Valley Power is still offering credit on your power bill for conservation choices. You are required to provide MVP with your verification of purchase and energy guide sticker in order to receive this credit.

We believe in the importance of conservation for our customers and the whole northwest region. It is important to reduce power used, save dollars for our customers, and reduce the electricity MVP has to purchase. Last year we recorded 29,408,562-kilowatt hours (kWh) in savings through your efforts. Our goal is to save 35,000,000 kWh from October 1, 2007 to September 30, 2008. Thanks to you, our customers, we have recorded 7,828,309 kWh savings as of December 6, 2007! You’ve done this by purchasing energy efficient appliances, building or remodeling to meet energy efficient standards, and switching to fluorescent lighting. A difference can be made everywhere when you make energy conscientious choices!

Mission Valley Power entered into a contract to purchase one tenth of megawatt of Green Power from Bonneville Power Administration (BPA), which started October 1, 2006, and goes through September 30, 2009. Green Power is power that is generated from renewable products such as the sun, wind, small hydro, and biomass to name a few. MVP completed a survey in 2003 that showed many customers would pay additional dollars to support Green Power. To date we have had 100 customers sign up to support this effort. You can elect to sign up for a year to pay an additional $3, $5 or $7 per month on your bill. We look forward to your continued responses. Mission Valley Power believes, as responsible consumers, we should encourage these types of power production and future developments.

Federal law now requires us to get a tax identification number or a social security number. This information is kept confidential. At the same time be sure and provide us with your household information such as number and age of people residing in the house, any required health services, etc.

Watch for the announcement of our Annual Conservation Awareness and Customer Appreciation Meeting in April 2008.

Mission Valley Power is celebrating our 20^th year in operation starting in October 1, 2008.

MVP welcomes your input and tries to incorporate the majority of your suggestions when they are doable. We always look forward to serving you.

You can depend on us to keep your lights on. I hope you and your families have a safe and enjoyable winter!