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/ 30 west superior street / duluth, minnesota 55802-2093 / 218-723-3961 /www.allete.com Christopher D. Anderson Associate General Counsel Fax 218-723-3955 e-mail canderson@allete.com August 8, 2008 Burl W. Haar Executive Secretary Minnesota Public Utilities Commission 121 7th Place East, Suite 350 St. Paul, MN 55101-2147 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-08-415 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, 2008. 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

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-08-415 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, 2008. /s/ Susan Romans Notary Public - Minnesota My Commission Expires Jan. 31, 2010 Affidavit of service.doc

Minnesota Power s Retail Rates service list (as of 7-23-08) Dr. Burl W Haar MN Public Utilities Commission Suite 350 121 7 th Place East St. Paul, MN 55101-2147 Sharon Ferguson MN Department of Commerce Suite 500 85 7 th Place East St. Paul, MN 55101-2198 John Lindell Attorney General s Office 900 Bremer Tower 445 Minnesota Street St. Paul, MN 55101-2130 Julia Anderson Attorney General s Office 1400 Bremer Tower 445 Minnesota Street St. Paul, MN 55101-2131 Eilon Amit MN Department of Commerce 85 7 th Place East, Suite 500 St. Paul, MN 55101-2198 Robert S Lee Mackall, Crounse & Moore, PLC 1400 AT&T Tower 901 Marquette Avenue Minneapolis, MN 55402-2859 Ron Spangler, Jr. Rate Case Mgr, Regulatory Services Otter Tail Power Company 215 South Cascade Street Fergus Falls, MN 56538 Michael C Krikava Briggs & Morgan 2200 IDS Center 80 South 8 th Street Minneapolis, MN 55402 John A Knapp Winthrop & Weinstine Suite 3500 225 South 6 th Street Minneapolis, MN 55402-4629 Bill Grant Izaak Walton League Midwest Office 1619 Dayton Avenue, Suite 202 St. Paul, MN 55104 James D Larson Dahlen Berg & Company 200 South 6 th Street Suite 300 Minneapolis, MN 55402 Elizabeth Goodpaster MN Center for Environmental Advocacy 26 East Exchange Street Suite 206 St. Paul, MN 55101 Paul Lehman Northern States Power Company 414 Nicollet Mall Minneapolis, MN 55401 Mike Sarafolean Gerdau Ameristeel 4221 W Boy Scout Blvd. Tampa, FL 33607

Minnesota Power s Retail Rates service list (as of 7-23-08) Pam Marshall Energy CENTS Coalition 823 7 th Street East St. Paul, MN 55106 Laurance R Waldoch Lindquist & Vennum 4200 IDS Center 80 South 8 th Street Minneapolis, MN 55402-2205 Eric Swanson Winthrop & Weinstine Suite 3500 225 South 6 th Street Minneapolis, MN 55402-4629 Ronald D Cerminaro Director-Purchasing, Energy & Consumables United States Steel Corporation 600 Grant Street Pittsburgh, PA 15219-4776 William Schmidt, Jr. USG Interiors, Inc. Ceiling Tile Division 35 Arch Street Cloquet, MN 55720 Bill Bond Mittal Steel USA-Minorca Mine P O Box 1 Virginia, MN 55792 Scott Coleman US Steel Minnesota Ore Operations P O Box 417 Mt. Iron, MN 55768 Pamela A. Mull, VP and GC Potlatch Corporation 601 West First Avenue, Suite 1600 Spokane, WA 99201 Greg Chandler Technical Director UPM Blandin Paper 115 SW First Street Grand Rapids, MN 55744 Harlan Bruxvoort Cleveland Cliffs 1100 Superior Avenue Cleveland, OH 44114 Steven Rogers Hibbing Taconite Company P O Box 589 Hibbing, MN 55746 Jay Lofgren Boise Cascade Corp. 400 Second Street International Falls, MN 56649 Gary Anderson New Page Duluth Paper Mill 100 N. Central Avenue Duluth, MN 55807 Mike Segal Sappi Fine Paper North America 2201 Avenue B P O Box 511 Cloquet, MN 55720

Minnesota Power s Retail Rates service list (as of 7-23-08) Tom Scharff NewPage 610 High Street P O Box 8050 Wisconsin Rapids, WI 54495-8050 Michael Rhoads Keewatin Taconite USS Minnesota Ore Operations P O Box 217 Keewatin, MN 55753 Shane Henriksen Enbridge Energy 119 North 25 th Street East Superior, WI 54880 Michael Darland Vice President Sappi Fine Paper North America 225 Franklin Street Boston, MA 02110 Sarah Manchester Associate General Counsel Sappi Fine Paper North America 225 Franklin Street Boston, MA 02110 Joe Scipioni PolyMet Mining, Inc. PO Box 475 County Highway 666 Hoyt Lakes, MN 55750 Marcia Podratz Director Rates Minnesota Power 30 West Superior Street Duluth, MN 55802 David J. McMillan Executive Vice President Minnesota Power 30 West Superior Street Duluth, MN 55802 Christopher D Anderson Associate General Counsel Minnesota Power 30 West Superior Street Duluth, MN 55802 Samuel Hanson/Thomas Bailey Elizabeth Brama Briggs & Morgan 2200 IDS Center 80 South 8 th Street Minneapolis, MN 55402 Bruce H. Johnson Administrative Law Judge Office of Administrative Hearings 600 North Robert Street P O Box 64620 St. Paul, MN 55614-0620

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, 2008. 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 704 704 231 2,216 1,171 2,627 15,520 22,345 144,716 47,752,614 347 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 2009. *The rate levels upon which the previous monthly costs are based were authorized in Docket No. E-015/GR-94-001. 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: 651-296-4026, TTY: 651-297-3067; and at the Minnesota Power office located at 30 West Superior Street, Duluth, Minnesota 55802. It is also available on the Internet at: Minnesota Power Web site: Commission Web site: www.mnpower.com; https://www.edockets.state.mn.us/efiling/search.jsp, under Docket Number E-015/GR-08-415. 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 55101.

City of Ah Gwah Ching Ah Gwah Ching, MN 56430 City of Akeley 25 Broadway Street East Akeley, MN 56433 City of Alborn 8971 Austin Road Alborn, MN 55072 City of Aldrich P O Box 152 Aldrich, MN 56434 City of Askov P O Box 245 Askov, MN 55704 City of Atkinson Atkinson, MN City of Aurora 16 West Second Avenue North Aurora, MN 55705 City of Babbitt City Hall 71 South Drive Babbitt, MN 55706 City of Backus P O Box 44 Backus, MN 56435 City of Bay Lake Bay Lake, MN City of Barnum 3741 Front Street Barnum, MN 55707 City of Belle Prairie Belle Prairie, MN City of Bertha P O Box 65 Bertha, MN 56437 City of Bigfork P O Box 196 Bigfork, MN 56628 City of Blue Grass Blue Grass, MN City of Bovey P O Box 399 Bovey, MN 55709 City of Bowlus P O Box 98 Bowlus, MN 56314 City of Brookston P O Box 304 Brookston, MN 55711 City of Browerville P O Box 247 Browerville, MN 56438 City of Bruno P O Box 112 Bruno, MN 55712 City of Buckman P O Box 609 Buckman, MN 56317 City of Burtrum P O Box 11 Burtrum, MN 56318 City of Calumet P O Box 375 Calumet, MN 55716 City of Carlton 310 Chestnut Avenue Carlton, MN 55718 City of Cherry c/o Amy Bassi 4435 County Rd 964 Hibbing, MN 55746 City of Chickama Beach c/o Jeannette Sylbaugh 6771 Indian Trail Lane Pine River, MN 56474 City of Chisholm 316 West Lake Street Chisholm, MN 55719 City of Clarissa P O Box 396 Clarissa, MN 56440 City of Clinton Clinton, MN 56225 City of Cloquet 1307 Cloquet Avenue Cloquet, MN 55720

City of Cohasset 305 NW First Avenue Cohasset, MN 55721 City of Coleraine P O Box 670 Coleraine, MN 55722 City of Culver Culver, MN 55779 City of Crosby 2 Second Street NW Crosby, MN 56441 City of Cuyuna P O Box 536 Deerwood, MN 56444 City of Deer River 208 Second Street SE Deer River, MN 56636 City of Deerwood P O Box 187 Deerwood, MN 56444 City of Denham 8624 Ballfield Drive Sturgeon Lake, MN 55783 City of Dorset Dorset, MN City of Duquette Duquette, MN 55756 City of Duluth 411 West First Street Duluth, MN 55802 City of East Gull Lake 10790 Squaw Point Road East Gull Lake, MN 56401 City of Elmdale 8162 State Hwy 238 Bowlus, MN 56314 City of Esko Esko, MN 55733 City of Eveleth 413 Pierce Street Eveleth, MN 55734 City of Fall Lake Fall Lake, MN City of Finlayson P O Box 244 Finlayson, MN 55735 City of Flensburg P O Box 70 Flensburg, MN 56328 City of Floodwood 206 East Eighth Avenue Floodwood, MN 55736 City of Forbes Forbes, MN 55736 City of Fort Ripley Fort Ripley, MN 56449 City of Genola 13759 Hwy 25 Pierz, MN 56364 City of Grey Eagle P O Box 116 Grey Eagle, MN 56336 City of Gutches Grove Gutches Grove, MN City of Hackensack P O Box 490 Hackensack, MN 56452 City of Hermantown 5131 Maple Grove Road Hermantown, MN 55811 City of Hewitt P O Box 91 Hewitt, MN 56453 City of Hinckley 106 First Street SE Hinckley, MN 55037 City of Hoyt Lakes 206 Kennedy Memorial Drive Hoyt Lakes, MN 55750 City of Hubbard Hubbard, MN

City of International Falls 600 Fourth Street International Falls, MN 56649 City of Iron Junction P O Box 38 Iron, MN 55751 City of Ironton P O Box 97 Ironton, MN 56455 City of Jenkins P O Box 63 Jenkins, MN 56456 City of Kelly Lake Kelly Lake, MN 55746 City of Kerrick P O Box 47 Kerrick, MN 55756 City of Kinney P O Box 307 Kinney, MN 55758 City of Lake Shore 8583 Interlachen Road Lake Shore, MN 56468 City of Lavelle Lavelle, MN City of Lastrup P O Box 55 Lastrup, MN 56344 City of Leonidas P O Box 768 Eveleth, MN 55734 City of Little Falls 100 NE Seventh Avenue Little Falls, MN 56345 City of Lake Hubert Lake Hubert, MN 56459 City of Little Sauk Little Sauk, MN 56347 City of Long Prairie 615 Lake Street South Long Prairie, MN 56347 City of Mahtowa Mahtowa, MN 55707 City of Marble P O Box 38 Marble, MN 55764 City of Meadowlands P O Box 128 Meadowlands, MN 55765 City of Moose Lake 412 Fourth Street Moose Lake, MN 55767 City of Menahga P O Box C Menahga, MN 56464 City of Mountain Iron 8586 South Enterprise Drive Mountain Iron, MN 55768 City of Motley P O Box 66 Motley, MN 55466 City of Nevis 104 Main Street West Nevis, MN 56467 City of Nimrod P O Box 943 Nimrod, MN 56478 City of Nisswa P O Box 410 Nisswa, MN 56468 City of Oreland Oreland, MN City of Osakis P O Box 486 Osakis, MN 56360 City of Park Rapids 212 Second Street W Park Rapids, MN 56470 City of Pengilly Pengilly, MN 55775 City of Pequot Lakes 4638 County Road 11 Pequot Lakes, MN 56472

City of Pillager 306 West Elm Street Pillager, MN 56473 City of Pillsbury Pillsbury, MN City of Pine River P O Box 87 Pine River, MN 56474 City of Proctor 100 Pionk Drive Proctor, MN 55810 City of Ranier P O Box 186 Ranier, MN 56668 City of Rice 205 Main Street Rice, MN 56367 City of Riverton 16663 Main Street Riverton, MN 56455 City of Round Prairie Round Prairie, MN 56167 City of Royalton P O Box 276 Royalton, MN 56373 City of Rutledge P O Box 124 Rutledge, MN 55795 City of St. Anthony 3301 Silver Lake Road St. Anthony, MN 55418 City of Saginaw Saginaw, MN 55779 City of St. Rosa 28916 County Rd 17 Freeport, MN 56331 City of Sawyer Sawyer, MN 55780 City of Sandstone 119 Fourth Street Sandstone, MN 55072 City of Scanlon 2801 Dewey Avenue Cloquet, MN 55720 City of Sebeka P O Box 305 Sebeka, MN 56477 City of Soudan Soudan, MN 55782 City of Silver Bay 7 Davis Drive Silver Bay, MN 55614 City of Sturgeon Lake P O Box 98 Sturgeon Lake, MN 55783 City of Swanville P O Box 296 Swanville, MN 56382 City of South International Falls South International Falls, MN 56679 City of Taconite P O Box 137 Taconite, MN 55786 City of Ten Mile Lake Ten Mile Lake, MN City of Thomson P O Box 92 Esko, MN 55733 City of Tower P O Box 576 Tower, MN 55790 City of Twig Twig, MN 55791 City of Trommald 18105 Whitetail Street Crosby, MN 56441 City of Upsala P O Box 340 Upsala, MN 56384 City of Verndale P O Box 156 Verndale, MN 56481

City of Walker P O Box 207 Walker, MN 56484 City of Willow River P O Box 125 Willow River, MN 55795 City of Winton P O Box 163 Winton, MN 55796 City of Wrenshall P O Box 157 Wrenshall, MN 55797 Pine County Commissioners Pine County Courthouse 635 Northridge Drive NW Pine City, MN 55063 Otter Tail County Commissioners Otter Tail County Courthouse 121 West Junius Avenue Fergus Falls, MN 56537 Cass County Commissioners Cass County Courthouse 300 Minnesota Avenue Walker, MN 56484 Crow Wing County Commissioners Crow Wing County Judicial Center 213 Laurel Street Brainerd, MN 56401 Wadena County Commissioners Wadena County Courthouse 415 Jefferson Street South Wadena, MN 56482 City of Eagle Bend 108 Main Street West Eagle Bend, MN 56446 Morrison County Commissioners Morrison County Gov t Center 213 SE First Avenue Little Falls, MN 56345 Itasca County Commissioners Itasca County Courthouse 123 Fourth Street NE Grand Rapids, MN 55744 Lake County Commissioners Lake County Courthouse 601 Third Avenue Two Harbors, MN 55616 Stearns County Commissioners Stearns County Courthouse 725 Courthouse Square St. Cloud, MN 56303 Koochiching County Commissioners Koochiching County Courthouse 715 Fourth Street International Falls, MN 56649 Benton County Commissioners Benton County Courthouse 615 Highway 23 Foley, MN 56329 St. Louis County Commissioner St. Louis County Courthouse 100 North Fifth Avenue West Duluth, MN 55802 Carlton County Commissioners Carlton County Courthouse 301 Walnut Avenue Carlton, MN 55718 Todd County Commissioners Todd County Gov t Center 221 First Avenue South Long Prairie, MN 56437 Hubbard County Commissioners Hubbard County Courthouse 301 Court Avenue Park Rapids, MN 56470 City of Stuntz Stuntz, MN City of Biwabik P O Box 529 Biwabik, MN 55708 City of Buhl P O Box 704 Buhl, MN 55713 City of Ely 209 E Chapman Street Ely, MN 55731 City of Gilbert P O Box 368 Gilberg, MN 55741 City of Grand Rapids P O Box 658 Grand Rapids, MN 55741 City of Hibbing 401 East 21 st Street Hibbing, MN 55746 City of Keewatin P O Box 190 Keewatin, MN 55753 City of McKinley P O Box 2088 Gilbert, MN 55741 City of Nashwauk 301 Central Avenue Nashwauk, MN 55769

City of Pierz P O Box 367 Pierz, MN 56364 City of Randall P O Box 229 Randall, MN 56475 City of Staples 611 Iowa Avenue NE Staples, MN 56479 City of Two Harbors 522 First Avenue Two Harbors, MN 55616 City of Wadena P O Box 20 Wadena, MN 56482 City of Zemple P O Box 187 Deerwood, MN 56444 Becker County Commissioners P O Box 787 913 Lake Avenue Detroit Lakes, MN 56502 Douglas County Commissioners 305 Eighth Avenue W Alexandria, MN 56308 Kanabec County Commissioners 18 North Vine Street Mora, MN 55051 Mille Lacs County Commissioners 635 Second Street SE Milaca, MN 56353