August 8, Burl W. Haar Executive Secretary Minnesota Public Utilities Commission 121 7th Place East, Suite 350 St. Paul, MN

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1 / 30 west superior street / duluth, minnesota / / Christopher D. Anderson Associate General Counsel Fax canderson@allete.com August 8, 2008 Burl W. Haar Executive Secretary Minnesota Public Utilities Commission 121 7th Place East, Suite 350 St. Paul, MN RE: Compliance Filing In the Matter of the Application of Minnesota Power for Authority to Increase Electric Service Rates in Minnesota, Docket No. E015/GR Notice to Counties and Municipalities Dear Dr. Haar: Minnesota Power submits this compliance filing as directed by the Minnesota Public Utilities Commission (the Commission ) July 18, 2008 Order appproving Minnesota Power s Notice to Counties and Municipalities in the above-referenced Docket. Minnesota Power hereby certifies that the attached Notice to all Counties and Municipalities on the attached list was mailed on August 8, Please contact me at the telephone number above or canderson@allete.com should you have any questions with respect to this filing. Yours truly, Enclosures c: Service List Christopher D. Anderson

2 STATE OF MINNESOTA ) AFFIDAVIT OF SERVICE VIA ) ss ELECTRONIC FILING COUNTY OF ST. LOUIS ) Kristie Lindstrom of the City of Duluth, County of St. Louis, State of Minnesota, says that on the 8 th day of August, 2008, she served Minnesota Power s Certification of mailing of Notice to all Counties and Municipalities in Docket No. E015/GR to the Minnesota Public Utilities Commission and the Office of Energy Security via efiling. The parties on the attached service list were served via First Class Mail. /s/ Kristie Lindstrom Subscribed and sworn to before me this 8 th day of August, /s/ Susan Romans Notary Public - Minnesota My Commission Expires Jan. 31, 2010 Affidavit of service.doc

3 Minnesota Power s Retail Rates service list (as of ) Dr. Burl W Haar MN Public Utilities Commission Suite th Place East St. Paul, MN Sharon Ferguson MN Department of Commerce Suite th Place East St. Paul, MN John Lindell Attorney General s Office 900 Bremer Tower 445 Minnesota Street St. Paul, MN Julia Anderson Attorney General s Office 1400 Bremer Tower 445 Minnesota Street St. Paul, MN Eilon Amit MN Department of Commerce 85 7 th Place East, Suite 500 St. Paul, MN Robert S Lee Mackall, Crounse & Moore, PLC 1400 AT&T Tower 901 Marquette Avenue Minneapolis, MN Ron Spangler, Jr. Rate Case Mgr, Regulatory Services Otter Tail Power Company 215 South Cascade Street Fergus Falls, MN Michael C Krikava Briggs & Morgan 2200 IDS Center 80 South 8 th Street Minneapolis, MN John A Knapp Winthrop & Weinstine Suite South 6 th Street Minneapolis, MN Bill Grant Izaak Walton League Midwest Office 1619 Dayton Avenue, Suite 202 St. Paul, MN James D Larson Dahlen Berg & Company 200 South 6 th Street Suite 300 Minneapolis, MN Elizabeth Goodpaster MN Center for Environmental Advocacy 26 East Exchange Street Suite 206 St. Paul, MN Paul Lehman Northern States Power Company 414 Nicollet Mall Minneapolis, MN Mike Sarafolean Gerdau Ameristeel 4221 W Boy Scout Blvd. Tampa, FL 33607

4 Minnesota Power s Retail Rates service list (as of ) Pam Marshall Energy CENTS Coalition th Street East St. Paul, MN Laurance R Waldoch Lindquist & Vennum 4200 IDS Center 80 South 8 th Street Minneapolis, MN Eric Swanson Winthrop & Weinstine Suite South 6 th Street Minneapolis, MN Ronald D Cerminaro Director-Purchasing, Energy & Consumables United States Steel Corporation 600 Grant Street Pittsburgh, PA William Schmidt, Jr. USG Interiors, Inc. Ceiling Tile Division 35 Arch Street Cloquet, MN Bill Bond Mittal Steel USA-Minorca Mine P O Box 1 Virginia, MN Scott Coleman US Steel Minnesota Ore Operations P O Box 417 Mt. Iron, MN Pamela A. Mull, VP and GC Potlatch Corporation 601 West First Avenue, Suite 1600 Spokane, WA Greg Chandler Technical Director UPM Blandin Paper 115 SW First Street Grand Rapids, MN Harlan Bruxvoort Cleveland Cliffs 1100 Superior Avenue Cleveland, OH Steven Rogers Hibbing Taconite Company P O Box 589 Hibbing, MN Jay Lofgren Boise Cascade Corp. 400 Second Street International Falls, MN Gary Anderson New Page Duluth Paper Mill 100 N. Central Avenue Duluth, MN Mike Segal Sappi Fine Paper North America 2201 Avenue B P O Box 511 Cloquet, MN 55720

5 Minnesota Power s Retail Rates service list (as of ) Tom Scharff NewPage 610 High Street P O Box 8050 Wisconsin Rapids, WI Michael Rhoads Keewatin Taconite USS Minnesota Ore Operations P O Box 217 Keewatin, MN Shane Henriksen Enbridge Energy 119 North 25 th Street East Superior, WI Michael Darland Vice President Sappi Fine Paper North America 225 Franklin Street Boston, MA Sarah Manchester Associate General Counsel Sappi Fine Paper North America 225 Franklin Street Boston, MA Joe Scipioni PolyMet Mining, Inc. PO Box 475 County Highway 666 Hoyt Lakes, MN Marcia Podratz Director Rates Minnesota Power 30 West Superior Street Duluth, MN David J. McMillan Executive Vice President Minnesota Power 30 West Superior Street Duluth, MN Christopher D Anderson Associate General Counsel Minnesota Power 30 West Superior Street Duluth, MN Samuel Hanson/Thomas Bailey Elizabeth Brama Briggs & Morgan 2200 IDS Center 80 South 8 th Street Minneapolis, MN Bruce H. Johnson Administrative Law Judge Office of Administrative Hearings 600 North Robert Street P O Box St. Paul, MN

6 NOTICE TO COUNTIES AND MUNICIPALITIES Under Minn. Stat. 216B.16, Subd. 1 On July 15, 2008, the Minnesota Public Utilities Commission ( Commission ) accepted as of June 12, 2008 Minnesota Power's application for a general increase in rates for electric service provided to customers in the State of Minnesota of approximately $45 million, or about 9.5 percent, pursuant to Minn. Stat. 216B.16. In accordance with Minn. Stat. 216B.16, subd. 2, the Commission has suspended proposed final rates to allow the Commission time to evaluate the application. In accordance with Minn. Stat. 216B.16, subd. 3, the Commission has authorized a total interim rate increase of approximately $35.5 million or about 7.50 percent to be effective August 1, During this interim period, Minnesota Power electric customers bills will be approximately 7.50 percent higher depending on service class, and the rates will remain in effect until a final rate level is determined. Examples of the effect of these increases on typical bills are as follows: Proposed change in monthly electricity costs¹ Customer classification Residential Residential Low Income Seasonal Residential Residential Controlled Access Dual Fuel Residential General Service Dual Fuel Commercial & Industrial Municipal Pumping Large Light and Power Large Power Street and Area Lighting Average monthly kwh usage ,216 1,171 2,627 15,520 22, ,716 47,752, Previous monthly costs $55 $55 $27 $117 $66 $207 $770 $1,473 $9,259 $2,265,784 $47 Interim monthly increase $4 $4 $2 $8 $5 $15 $54 $105 $661 $156,354 $3 Proposed final monthly increase $16² $5 $7 $23 $19 $46 $201 $285 $678 $73,671 $0 ¹Monthly increases include all line items on bills except sales taxes and municipal franchise fees, and may vary by individual customer based on usage characteristics. ²Residential final monthly increase is proposed to be phased in over three years beginning in *The rate levels upon which the previous monthly costs are based were authorized in Docket No. E-015/GR The Commission will determine the amount of increase in rates it will allow on or before mid-year 2009, and final rates reflecting that determination will be implemented thereafter. If the final rate level is less than the interim rate level, the amount collected during the interim period attributable to that difference will be refunded to customers with interest. The proposed rate schedules and a comparison of present and proposed rates may be examined by the public during normal business hours at the Minnesota Department of Commerce, 85 7th Place East, Suite 500, St. Paul, MN 55101, Telephone: , TTY: ; and at the Minnesota Power office located at 30 West Superior Street, Duluth, Minnesota It is also available on the Internet at: Minnesota Power Web site: Commission Web site: under Docket Number E-015/GR The Minnesota Department of Commerce Office of Energy Security is conducting an investigation of Minnesota Power s books and records. An Administrative Law Judge will schedule public hearings. Customers will be notified when the hearings are scheduled. Public notice of hearings dates and locations will be published in local newspapers in Minnesota Power s service area. Persons who wish to formally intervene or testify in this case should contact the Administrative Law Judge, Minnesota Office of Administrative Hearings, 600 North Robert St., St. Paul, MN

7 City of Ah Gwah Ching Ah Gwah Ching, MN City of Akeley 25 Broadway Street East Akeley, MN City of Alborn 8971 Austin Road Alborn, MN City of Aldrich P O Box 152 Aldrich, MN City of Askov P O Box 245 Askov, MN City of Atkinson Atkinson, MN City of Aurora 16 West Second Avenue North Aurora, MN City of Babbitt City Hall 71 South Drive Babbitt, MN City of Backus P O Box 44 Backus, MN City of Bay Lake Bay Lake, MN City of Barnum 3741 Front Street Barnum, MN City of Belle Prairie Belle Prairie, MN City of Bertha P O Box 65 Bertha, MN City of Bigfork P O Box 196 Bigfork, MN City of Blue Grass Blue Grass, MN City of Bovey P O Box 399 Bovey, MN City of Bowlus P O Box 98 Bowlus, MN City of Brookston P O Box 304 Brookston, MN City of Browerville P O Box 247 Browerville, MN City of Bruno P O Box 112 Bruno, MN City of Buckman P O Box 609 Buckman, MN City of Burtrum P O Box 11 Burtrum, MN City of Calumet P O Box 375 Calumet, MN City of Carlton 310 Chestnut Avenue Carlton, MN City of Cherry c/o Amy Bassi 4435 County Rd 964 Hibbing, MN City of Chickama Beach c/o Jeannette Sylbaugh 6771 Indian Trail Lane Pine River, MN City of Chisholm 316 West Lake Street Chisholm, MN City of Clarissa P O Box 396 Clarissa, MN City of Clinton Clinton, MN City of Cloquet 1307 Cloquet Avenue Cloquet, MN 55720

8 City of Cohasset 305 NW First Avenue Cohasset, MN City of Coleraine P O Box 670 Coleraine, MN City of Culver Culver, MN City of Crosby 2 Second Street NW Crosby, MN City of Cuyuna P O Box 536 Deerwood, MN City of Deer River 208 Second Street SE Deer River, MN City of Deerwood P O Box 187 Deerwood, MN City of Denham 8624 Ballfield Drive Sturgeon Lake, MN City of Dorset Dorset, MN City of Duquette Duquette, MN City of Duluth 411 West First Street Duluth, MN City of East Gull Lake Squaw Point Road East Gull Lake, MN City of Elmdale 8162 State Hwy 238 Bowlus, MN City of Esko Esko, MN City of Eveleth 413 Pierce Street Eveleth, MN City of Fall Lake Fall Lake, MN City of Finlayson P O Box 244 Finlayson, MN City of Flensburg P O Box 70 Flensburg, MN City of Floodwood 206 East Eighth Avenue Floodwood, MN City of Forbes Forbes, MN City of Fort Ripley Fort Ripley, MN City of Genola Hwy 25 Pierz, MN City of Grey Eagle P O Box 116 Grey Eagle, MN City of Gutches Grove Gutches Grove, MN City of Hackensack P O Box 490 Hackensack, MN City of Hermantown 5131 Maple Grove Road Hermantown, MN City of Hewitt P O Box 91 Hewitt, MN City of Hinckley 106 First Street SE Hinckley, MN City of Hoyt Lakes 206 Kennedy Memorial Drive Hoyt Lakes, MN City of Hubbard Hubbard, MN

9 City of International Falls 600 Fourth Street International Falls, MN City of Iron Junction P O Box 38 Iron, MN City of Ironton P O Box 97 Ironton, MN City of Jenkins P O Box 63 Jenkins, MN City of Kelly Lake Kelly Lake, MN City of Kerrick P O Box 47 Kerrick, MN City of Kinney P O Box 307 Kinney, MN City of Lake Shore 8583 Interlachen Road Lake Shore, MN City of Lavelle Lavelle, MN City of Lastrup P O Box 55 Lastrup, MN City of Leonidas P O Box 768 Eveleth, MN City of Little Falls 100 NE Seventh Avenue Little Falls, MN City of Lake Hubert Lake Hubert, MN City of Little Sauk Little Sauk, MN City of Long Prairie 615 Lake Street South Long Prairie, MN City of Mahtowa Mahtowa, MN City of Marble P O Box 38 Marble, MN City of Meadowlands P O Box 128 Meadowlands, MN City of Moose Lake 412 Fourth Street Moose Lake, MN City of Menahga P O Box C Menahga, MN City of Mountain Iron 8586 South Enterprise Drive Mountain Iron, MN City of Motley P O Box 66 Motley, MN City of Nevis 104 Main Street West Nevis, MN City of Nimrod P O Box 943 Nimrod, MN City of Nisswa P O Box 410 Nisswa, MN City of Oreland Oreland, MN City of Osakis P O Box 486 Osakis, MN City of Park Rapids 212 Second Street W Park Rapids, MN City of Pengilly Pengilly, MN City of Pequot Lakes 4638 County Road 11 Pequot Lakes, MN 56472

10 City of Pillager 306 West Elm Street Pillager, MN City of Pillsbury Pillsbury, MN City of Pine River P O Box 87 Pine River, MN City of Proctor 100 Pionk Drive Proctor, MN City of Ranier P O Box 186 Ranier, MN City of Rice 205 Main Street Rice, MN City of Riverton Main Street Riverton, MN City of Round Prairie Round Prairie, MN City of Royalton P O Box 276 Royalton, MN City of Rutledge P O Box 124 Rutledge, MN City of St. Anthony 3301 Silver Lake Road St. Anthony, MN City of Saginaw Saginaw, MN City of St. Rosa County Rd 17 Freeport, MN City of Sawyer Sawyer, MN City of Sandstone 119 Fourth Street Sandstone, MN City of Scanlon 2801 Dewey Avenue Cloquet, MN City of Sebeka P O Box 305 Sebeka, MN City of Soudan Soudan, MN City of Silver Bay 7 Davis Drive Silver Bay, MN City of Sturgeon Lake P O Box 98 Sturgeon Lake, MN City of Swanville P O Box 296 Swanville, MN City of South International Falls South International Falls, MN City of Taconite P O Box 137 Taconite, MN City of Ten Mile Lake Ten Mile Lake, MN City of Thomson P O Box 92 Esko, MN City of Tower P O Box 576 Tower, MN City of Twig Twig, MN City of Trommald Whitetail Street Crosby, MN City of Upsala P O Box 340 Upsala, MN City of Verndale P O Box 156 Verndale, MN 56481

11 City of Walker P O Box 207 Walker, MN City of Willow River P O Box 125 Willow River, MN City of Winton P O Box 163 Winton, MN City of Wrenshall P O Box 157 Wrenshall, MN Pine County Commissioners Pine County Courthouse 635 Northridge Drive NW Pine City, MN Otter Tail County Commissioners Otter Tail County Courthouse 121 West Junius Avenue Fergus Falls, MN Cass County Commissioners Cass County Courthouse 300 Minnesota Avenue Walker, MN Crow Wing County Commissioners Crow Wing County Judicial Center 213 Laurel Street Brainerd, MN Wadena County Commissioners Wadena County Courthouse 415 Jefferson Street South Wadena, MN City of Eagle Bend 108 Main Street West Eagle Bend, MN Morrison County Commissioners Morrison County Gov t Center 213 SE First Avenue Little Falls, MN Itasca County Commissioners Itasca County Courthouse 123 Fourth Street NE Grand Rapids, MN Lake County Commissioners Lake County Courthouse 601 Third Avenue Two Harbors, MN Stearns County Commissioners Stearns County Courthouse 725 Courthouse Square St. Cloud, MN Koochiching County Commissioners Koochiching County Courthouse 715 Fourth Street International Falls, MN Benton County Commissioners Benton County Courthouse 615 Highway 23 Foley, MN St. Louis County Commissioner St. Louis County Courthouse 100 North Fifth Avenue West Duluth, MN Carlton County Commissioners Carlton County Courthouse 301 Walnut Avenue Carlton, MN Todd County Commissioners Todd County Gov t Center 221 First Avenue South Long Prairie, MN Hubbard County Commissioners Hubbard County Courthouse 301 Court Avenue Park Rapids, MN City of Stuntz Stuntz, MN City of Biwabik P O Box 529 Biwabik, MN City of Buhl P O Box 704 Buhl, MN City of Ely 209 E Chapman Street Ely, MN City of Gilbert P O Box 368 Gilberg, MN City of Grand Rapids P O Box 658 Grand Rapids, MN City of Hibbing 401 East 21 st Street Hibbing, MN City of Keewatin P O Box 190 Keewatin, MN City of McKinley P O Box 2088 Gilbert, MN City of Nashwauk 301 Central Avenue Nashwauk, MN 55769

12 City of Pierz P O Box 367 Pierz, MN City of Randall P O Box 229 Randall, MN City of Staples 611 Iowa Avenue NE Staples, MN City of Two Harbors 522 First Avenue Two Harbors, MN City of Wadena P O Box 20 Wadena, MN City of Zemple P O Box 187 Deerwood, MN Becker County Commissioners P O Box Lake Avenue Detroit Lakes, MN Douglas County Commissioners 305 Eighth Avenue W Alexandria, MN Kanabec County Commissioners 18 North Vine Street Mora, MN Mille Lacs County Commissioners 635 Second Street SE Milaca, MN 56353