Lake Country Power to Invest in Automated Meter Reading

Grand Rapids, MN, August 7, 2003 - Lake Country Power announced it's teaming with two technology providers to improve the capabilities of its electric distribution system. The electric cooperative has signed an agreement with the National Rural Telecommunications Cooperative and Cannon Technologies to install automated meter reading equipment and substation technology to improve customer service and reliability. The upgrade, which will be phased in over the next five years, combines two cutting-edge technologies to better serve the rural electric co-op's 40,000-plus members.

"Automated Meter Reading provides electric utilities with an innovative way to increase operating efficiencies and provide timely system information," said Rick Lemonds, Lake Country Power general manager. "From a customer service perspective, our members will no longer have to read meters or submit meter readings. More importantly, real-time data will help us pinpoint specific problem areas during outages and assist in restoring power safer and faster for our members."

Lemonds said the first phase of meter conversion will begin in April 2004 when new meters containing the AMR technology are installed. The meter change-outs will be the only visible modification from a consumer perspective. The new system will use existing power lines as well as a wireless radio network to convey system information from a consumer's meter to a Lake Country Power desktop workstation.

"We pilot tested several different AMR systems and found the technology provided by NRTC and Cannon Technologies is the best fit for our long-term needs," said Lemonds. "The project goes far beyond meter reading. We'll be able to identify failures to our load control programs. We'll see improvements in billing accuracy. And we'll have the flexibility to establish retail rates based on 'time of use,' which will help consumers be more aware of the impact of power costs when system demand is at its peak."

Lake Country Power will draw on internal and external resources to fund the $10 million project. The co-op will utilize $1.5 million from its investment portfolio to pay for a portion of the project. The capital investment will also be funded through a low-interest loan from the Rural Utilities Service and cash from internal operations. Lemonds said the payback on the phased-in roll-out schedule is ten years.

Lake Country Power (www.lakecountrypower.coop) is a member-owned electric distribution cooperative serving parts of eight counties in northeastern Minnesota. It's part of a nationwide network of Touchstone Energy cooperatives and provides electric services and programs to more than 40,000 members in the region. The co-op has offices in Grand Rapids, Kettle River and Virginia.

Cannon Technologies, Inc. (www.cannontech.com) is a privately owned energy technology company specializing in the development of software and hardware systems for electric utility automation. Cannon Technologies manufactures automatic meter reading (AMR) and load management systems, and has the most widely used load management software in the industry. The company is based in Golden Valley, Minn., with branch offices in Iowa, Nebraska, Colorado, Virginia, North Dakota and Texas.

NRTC, (www.nrtc.org) supports more than 1,000 rural utilities and their communities by delivering telecommunications solutions such as product research and development, technical support, marketing assistance, regional support, and an industry voice. NRTC's members serve more than 20 million customers in areas of the country that have been un-served or under-served by traditional utilities and other businesses.

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For More Information, Contact:

Mike Birkeland, Manager, Communications
(218) 273-3328 mbirkeland@lakecountrypower.com
or
Tami Peoples, Public Relations Coordinator
(218) 326-7152 tpeoples@lakecountrypower.com