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Xcel Energy- 414 Nicollet Mall Minneapolis, Minnesota 55401-1993 j q/ September 25, 2012 Q. _A it, r v Michael Gaffron Assistant City Administrator Long Term Strategy City of Orono PO Box 66 Crystal Bay, MN 55323 RE: Xcel Energy Orono Substation Replacement and New Transmission Line Connection (Minnesota Public Utilities Commission Docket E002/TL-11-223) Dear Michael, Northern States Power Company, d/b/a Xcel Energy obtained a Route Permit for construction of a high-voltage transmission line and associated facilities from the Minnesota Public Utilities Commission (MNPUC) on April 6, 2012. The Route Permit authorizes Xcel Energy to construct a new 115kV transmission line between Xcel Energy Line 0831 and the Orono Substation, and to expand and modify the Orono Substation. Special Conditions listed in Section 5.3 of the Route Permit required Xcel Energy to allow the Commission, the city of Orono, the Huntington Farm Home Owners' Association (HFHOA) and local landowners to review and provide comments on the substation design including the location and dimension of proposed berms and vegetation around the replacement substation. As a result of the review and comments from all parties as well as extensive collaboration with the HFHOA, Xcel Energy provided a final design of the replacement substation including details of a new earth berm to be constructed and several new trees and shrubs to be planted on Xcel Energy property and a portion of Outlot A; Lot 1, Block 9 and Lot 1, Block 8 of Huntington Farms. Final plans for the substation design were submitted to the MNPUC on August 15, 2012 and Xcel Energy has secured temporary construction rights from the HFHOA and two other individual landowners as needed to construct the berm and install new landscaping. Construction of the berm is expected to commence in early October 2012 while installation of trees and shrubs is anticipated to begin in the spring of 2013. Per our recent discussions, Xcel Energy requests that the City of Orono accept and grant written approval of the construction of a new berm, removal of vegetation and the installation of trees and shrubs by Xcel Energy on a portion of Outlot A, Huntington Farms as they relate to the existing easements held by the city. Specifically these are the "Flowage and Conservation Easement and Waiver of Damages" (document No. 5153932) and the "Open Space Easement" (document No. 5153933)both as filed with the Hennepin County Recorder on September 8, 1986.