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Regardless of the outcome of Lake Country Power's MPUC regulation vote, I am offering a few final perspectives on the issue of rate regulation before the state administers the ballot count beginning on August 17-we will have the final count by the end of August.

As we have stated since the beginning of this initiative, it is the right and privilege of members to vote on an issue such as rate regulation in a cooperative. That vote will determine the path forward for members of Lake Country Power.

If the outcome means the cooperative is rate regulated, Lake Country Power's mission will not change and we will meet the objective set forth by members through the vote. Either way, the Board will continue to direct management to do its best to provide members with safe and reliable electric service and look for innovative and affordable ways to meet that mission.

As we have emphasized since the issue began, the trade-off with additional government jurisdiction and regulation would mean that more than $350,000 a year would be spent on paying lawyers, contracting with power consultants, processing and printing more paper, and paying twice for the same work to be done.[[In-content Ad]]For the Board the ongoing question is where should the cooperative's dollars be spent? Should they be spent on equipment and materials to provide better, more reliable service or will they be spent for more people to push more paper? As a Board we are convinced that member resources are better spent on wires, poles, transformers, substations, right-of-way clearing, meters, trucks, and employees-rather than being spent on state oversight.

Rate regulation would in many ways make the job of Lake Country Power's Board less challenging. For example, all Board decisions on rate increases would carry the stamp of MPUC approval and we could pass off the responsibility for consumer-related decisions on to the PUC shoulders instead of our own.

The final irony is that if rate regulated, MPUC oversight would not address the primary concerns raised by the petitioners--specifically including the terms of the Co-op's power supply contract, which contains regulatory requirements of both the federal government and the cooperative's lenders.

We understand that additional oversight and jurisdiction of the cooperative sounds good, but it is most important that all the facts on the matter are known. We have made a concerted effort through many member meetings and the printed word to present the facts relative to MPUC regulation of an electric cooperative. Our goal over the past few months has been to provide the necessary information for members to make an informed decision.

Members have long told us that rising electric rates are a primary concern. Regardless of the vote outcome, the cost of electricity will not go down. As elected representatives of the members, we know how limited resources are within the co-op.

We are concerned that should state regulation be chosen by the members, it will mean the unwise use of resources that really are needed to meet the most important mission of Lake Country Power: To provide rural residents with safe, reliable, and affordable electric service.

Richard C. Wallin

President, Board of Directors

Lake Country Power

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