Rate Increase

TO: To our valued customers:
DATE:   December 8, 2006
RE: Rate Increase

This memo is to inform our consumers about a rate increase that will go into effect with your January 2007 water usage (billed out the end of February).

We are currently addressing some of the low pressure and water shortage issues that North Prairie Rural Water District has been dealing with for many years.

To alleviate some of these issues, bids have been opened to install a new 8” water main from our water treatment plant east of Velva to our SW Minot area reservoir. This will allow us to bring water from that system over to the southwest part of Minot transferring some 500 to 600 users onto the new water treatment plant.

Along with the new 8” water main installation, we will also be opening up bids to construct a new water treatment plant east of Velva that will allow North Prairie to treat 800 to 900 gallons of water per minute. The water plant that we are replacing was built in 1973 and has seen better days. The new water treatment plant will be an iron and manganese removal system with ion exchange or nano filtration to also soften the water.

In order to pay for these two major water projects, we will have to increase the current monthly minimum to all consumers. The monthly minimum will increase $12.00 per month along with an additional $0.10 per 1000 gallons of water.

Rate Adjustments will be as follows:
Current Monthly Minimum     Rate Adjustment
Rural/Residential Accounts $25.00/month $37.00/month
Commercial Accounts $28.80/month $40.80/month

Costs per 1000 gallons of water will go from $4.40/1000 gallons to $4.50/1000 gallons of water.

Once again, we know these projects will make a big difference in your water system. If you have any questions, please feel free to call me at the office at 852-1886.

Ralph Packulak
Manager