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<br />CenterPoin/", <br />Energy <br /> <br />800 LaSalle Avenue <br />PO Box 59038 <br />Minneapolis, MN 55459-0038 <br /> <br />January 5,2006 <br /> <br />Mr. Dallas Larson <br />1880 Main Street <br />Centerville, MN 55038-9794 <br /> <br />Deaf Mr. Larson: <br /> <br />On November 2, 2005, CenterPoint Energy filed to change its distribution rates. If approved by <br />the Minnesota Public Utilities Commission (MPUC), the new rates will increase the company's <br />annual revenue by $40.9 million or 2.4 percent, and will increase the average residential customer's <br />bill by about $3 per month. Interim (temporary) rates for all customer groups took effect January <br />1, 2006 and will continue until the MPUC issues a final decision and the company implements its <br />new rates in the fall of 2006. <br /> <br />CenterPoint Energy requested new rates because its current ones do not recover the increased costs <br />of distributing natural gas to more than 770,000 customers in over 240 communities. These cost <br />increases are due primarily to rising natural gas prices, increasing capital investments and declining <br />use per customer. <br /> <br />State law requires CenterPoint Energy to distribute rate filing and public hearing notices to all <br />counties and municipalities in the company's service area. Information about the public hearings <br />will be provided to you after they are scheduled and will be advertised in the newspaper of record <br />for each county seat in the company's service area and in the public hearing locations. <br /> <br />Please contact me or visit the company's Web site ate www.CenterPointEnergy.com/ratecase for <br />more information. <br /> <br />Sincerely, <br />(J~~ <br /> <br />Arne Hendrickson <br />Local Government Relations <br />612-321-5375 <br />Fax: 612-321-5137 <br /> <br />Enclosures <br />