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The Customer’s Voice

Bruce Sayler

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Connexus Energy

• Not-for-profit member/customer owned cooperative– Largest in Minnesota

• Provide electric service to 123,000 residential and commercial customers in seven counties

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Conflicting Messages:

• Energy Department’s Energy Information Administration (EIA) latest report:– Yahoo News

• “climate bill…would only modestly raise annual energy costs for families…$83/year or 23 cents/day.”

– The New York Times• “House bill will spur 20% electricity price hike by 2030 - EIA”

– DO NOT DISTRIBUTE – Positive Energy Confidential 4

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24Retail Rate, 2007 Dollars

Base, no CO2 cost any yearLow, $32Med, $65High, $130

Axis Title 34%

CO2 Cost per ton in 2030

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Customer Feedback

• “What’s Cap and Trade?”

• “My electric bill could be WHAT?”• “We’ll be out of business”• “!@#$%, ^&*#@!”• “What can I do?”

Customer feedback week of 8/10/09

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What other Customersare saying…

• The latest polls:– Gallup - The number of Americans who say the media have

exaggerated global warming jumped to a record 41 percent in 2009, up from 35 percent a year ago.

– In a July Rasmussen poll, 56 percent said they didn't want to pay higher taxes or utility bills to generate clean energy and fight global warming.

– A January Pew poll placed global warming last among the top 20 priorities Americans have for 2009. Nos. 1 and 2? The economy and jobs.

– National Rural Electric Cooperative Association poll that showed 58 percent of respondents were unwilling to pay more than they currently pay for electricity to combat climate

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Connexus Customer’s Impact per year

• Schools $15,000 - $62,000

• Public Buildings $16,000- $122,000

• Manufacturing/Services $15,000- $269,000

• Retail $15,000 - $103,000

Analysis of top 85 accounts

Where will these increases be passed on to?

What will happened to them?

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“We exist as an advocate for our customers”

• Public Education– Started educating our residential and commercial

customers• “Our Energy Our Future”• Bill insert

– Factual information – “your electric bill will increase”

– DO NOT DISTRIBUTE – Positive Energy Confidential 9

– DO NOT DISTRIBUTE – Positive Energy Confidential 10

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Questions?