November 28, Don Woessner, CFO Spectro Alloys Corp Doyle Path Rosemount, MN DOCKET NO. G007,011/CIP Nature of Docket: CIP

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1 November 28, 2011 Don Woessner, CFO Spectro Alloys Corp Doyle Path Rosemount, RE: DOCKET NO. G007,011/CIP-11- Nature of Docket: CIP Dear Mr. Woessner: Enclosed please find the Minnesota Department of Commerce information request number(s) 10 in the above referenced docket number. Provide your responses by the indicated due date in.pdf format, via at If responding to more than one question, please make each response a separate file. If the analyst requests anything on a CD- ROM, please send 1 copy to at me the following address: Mr. Alexius Hofschulte Department of Commerce 85 7 th Place East, Suite Please indicate the above referenced docket number, the corresponding request number, the requesting analyst, and the respondent s name and title on your response. If your response contains Trade Secret data, please include a public version. If you have any questions or problems providing information in the time specified, please contact me at (651) and I will direct you to the analyst requesting the information. Respectfully submitted, Alexius M. Hofschulte Regulatory Information Center Enc.

2 State of Minnesota DEPARTMENT OF COMMERCE DIVISION OF ENERGY RESOURCES Utility Information Request Docket Number: G007,G011/CIP-11- Date of Request: November 28, 2011 Requested From: Spectro Alloys Corporation Response Due: December 8, 2011 (Spectro or the Company) Analyst Requesting Information: Joseph Plummer Type of Inquiry: [ ] Financial [ ] Rate of Return [ ] Rate Design [ ] Engineering [ ] Forecasting [ ] Conservation [ ] Cost of Service [ ] CIP [ ] Other: If you feel your responses are trade secret or privileged, please indicate this on your response. Request No. 10 Re: Petition for Conservation Improvement Program (CIP) Exemption Minn. Stat. 216B.241 subd. 1a (c) states: Cont d A commercial gas customer that is not a large customer facility and that purchases or acquires natural gas from a public utility having fewer than 600,000 natural gas customers in Minnesota may petition the commissioner to exempt gas utilities serving the commercial gas customer from the investment and expenditure requirements of paragraph (a) with respect to retail revenues attributable to the commercial gas customer. The petition must be supported by evidence demonstrating that the commercial gas customer has acquired or can reasonably acquire the capability to bypass use of the utility's gas distribution system by obtaining natural gas directly from a supplier not regulated by the commission. The commissioner shall grant the exemption if the commissioner finds that the petitioner has made the demonstration required by this paragraph. (Emphasis added.) Response by: List sources of information: Title: Department: Telephone:

3 In its filing, Spectro stated the following: Spectro currently receives their natural gas supply as a transportation customer on the MERC distribution system. The delivery charge from MERC is at a discounted rate in accordance with MERC s current flexible rate tariff. The discount is justified in that Spectro is a potential bypass customer being only 8,000 feet from an alternative gas supply source. Please provide additional information to demonstrate that the Company has acquired, or can reasonably acquire, the capability to bypass use of Minnesota Energy Resources Corporation s (MERC) gas distribution system including: a) The owner of the alternative gas supply source to which the Company would connect if the Company elected to bypass MERC s gas distribution system; b) A quantitative analysis of the total estimated costs to Spectro of connecting to the alternative gas supply source identified in response to Part a), including any capital, permitting, operation and maintenance, and gas costs, compared with the estimated costs of continuing to have gas service provided by MERC (please also include a description of each assumption used in the quantitative analysis, together with Spectro s rationale for using the assumption); and c) The specific rate schedule(s) on which Spectro purchases natural gas from MERC. Response by: List sources of information: Title: Department: Telephone:

4 George Agriesti Minnesota Power 30 W Superior St Julia Anderson Julia.Anderson@ag.state.m n.us Office of the Attorney General-DOC BRM Tower 445 Minnesota St Christopher Anderson canderson@allete.com Minnesota Power 30 W Superior St Howard Ankrum hankrum@aeoa.org Arrowhead Economic Opportunity John Bailey bailey@ilsr.org Institute For Local Self- Reliance Tom Balster tombalster@alliantenergy.c om Interstate Power & Light Company rd Ave S Virginia, th St SE Ste PO Box st St SE Cedar Rapids, IA Richard Baxendale Boise Cascade Corporation 926 Harvard Avenue East Bill Bond william.bond@arcelormittal. com ArcelorMittal USA - Minorca Mine Inc. Seattle, WA PO Box Old Highway 53 Virginia, Christina Brusven cbrusven@fredlaw.com Fredrikson & Byron, P.A. 200 S 6th St Ste 4000 Greg Chandler greg.chandler@upmkymmene.com Christopher Clark christopher.b.clark@xcelen ergy.com UPM Blandin Paper Xcel Energy SW First Street Grand Rapids, th Floor 414 Nicollet Mall Paper Service No OFF_SL_11-_CIP-11- Electronic Service No OFF_SL_11-_CIP-11- Electronic Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11- Electronic Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11- Electronic Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11-

5 Michael Darland Sappi Fine Paper North America Jeffrey A. Daugherty rgy.com CenterPoint Energy Executive Director N/A Sustainable Resources Center Suzanne Doyle Sharon Ferguson Xcel Energy Mark Glaess Minnesota Rural Electric Association 225 Franklin Street Boston, MA LaSalle Ave th Ave SE Nicollet Mall Department of Commerce 85 7th Place E Ste 500 Saint Paul, rd Ave N Maple Grove, Lara V Greden N/A The Weidt Group 5800 Baker Rd Stephan Gunn sgunn@appliedenergygrou p.com Applied Energy Group Minnetonka, Pike Ln De Pere, WI Burl W. Haar burl.haar@state.mn.us Public Utilities Commission Suite th Place East Jessy Hennesy jessy.hennesy@avantener gy.com Avant Energy 200 South Sixth Street Suite 300 Minnesota Paper Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11- Electronic Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11- Electronic Service No OFF_SL_11-_CIP-11- Electronic Service Yes OFF_SL_11-_CIP-11- Electronic Service No OFF_SL_11-_CIP-11-2

6 Martha J. Hewett Center For Energy And Environment James Jarvi N/A Minnesota Ore Operations - U S Steel Suite 560 Paper Service No OFF_SL_11-_CIP Third Avenue North P O Box 417 Mountain Iron, Julie Ketchum Waste Management 1901 Ames Drive Burnsville, John Kingstad N/A Public Utilities Reports Afton Blvd S Afton, Tina Koecher tkoecher@mnpower.com Minnesota Power 30 W Superior St Joseph Kubacki Jr. Babst Calland Clements & Zomnir P C Nancy Lange nlange@iwla.org Izaak Walton League of America Peder Larson plarson@larkinhoffman.co m Larkin Hoffman Daly & Lindgren, Ltd. Robert S Lee RSL@MCMLAW.COM Mackall Crounse & Moore Law Offices Martin Lepak N/A Arrowhead Economic Opportunity Two Gateway Center Pittsburgh, PA Suite Dayton Avenue Wells Fargo Plaza 7900 Xerxes Ave S Bloomington, AT&T Tower 901 Marquette Ave Chuck Center Dr Ste B Paper Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11- Electronic Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11-3

7 Allan Lian Minnesota Power 30 W Superior St John Lindell agorud.ecf@ag.state.mn.us Office of the Attorney General-RUD BRM Tower 445 Minnesota St Joseph Maher Blandin Paper Company 115 Southwest First Street Nick Mark nick.mark@centerpointener gy.com CenterPoint Energy Grand Rapids, LaSalle Ave Pam Marshall pam@energycents.org Energy CENTS Coalition 823 7th St E Keith Matzdorf keith.matzdorf@sappi.com Sappi Fine Paper North America Craig Metz N/A EnSave Energy Performance Andrew Moratzka apm@mcmlaw.com Mackall, Crounse and Moore PO Box Avenue B Cloquet, Millet St, Suite 105 Richmond, VT AT&T Tower 901 Marquette Ave Gary Olson Product Recovery, Inc E Cliff Rd Burnsville, Kim Pederson kpederson@otpco.com Otter Tail Power Company 215 S Cascade St PO Box 496 Fergus Falls, Paper Service No OFF_SL_11-_CIP-11- Electronic Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11- Electronic Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11-4

8 Jim Phillippo N/A Minnesota Energy Resources Corporation PO Box Green Bay, WI David Planting Archer Daniels Midland 400 West Erie Rd. Marshall, Brad Roos Marshall Municipal Utilities 113 4th Street South Marshall, Tom Sagstetter N/A Great River Energy US HWY 10 Elk River, Tom Sagstetter Great River Energy Elm Creek BoulevardHighway 10 Paper Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11- Maple Grove, Mary E. Schwind LEONARD, STREET AND DEINARD Suite St. Peter Street Narv Somdahl N/A Citizen 5100 W 102nd St Apt 209 Bloomington, Leo Steidel N/A The Weidt Group 5800 Baker Rd Minnetonka, Eric Swanson eswanson@winthrop.com Winthrop Weinstine 225 S 6th St Ste 3500 Capella Tower 4629 SaGonna Thompson Regulatory.Records@xcele nergy.com Xcel Energy 414 Nicollet Mall FL Paper Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11- Paper Service No OFF_SL_11-_CIP-11- Electronic Service No OFF_SL_11-_CIP-11- Electronic Service No OFF_SL_11-_CIP-11-5

9 Gregory Walters yresources.com Minnesota Energy Resources Corporation 3460 Technology Dr. NW Rochester, Paper Service No OFF_SL_11-_CIP-11-6

10 George Agriesti Minnesota Power 30 W Superior St Julia Anderson Julia.Anderson@ag.state.m n.us Office of the Attorney General-DOC John Bailey bailey@ilsr.org Institute For Local Self- Reliance Tom Balster tombalster@alliantenergy.c om Interstate Power & Light Company BRM Tower 445 Minnesota St th St SE Ste PO Box st St SE Cedar Rapids, IA Christina Brusven cbrusven@fredlaw.com Fredrikson & Byron, P.A. 200 S 6th St Ste 4000 Jeffrey A. Daugherty jeffreydaugherty@centerpointene rgy.com Sharon Ferguson sharon.ferguson@state.mn.us CenterPoint Energy Mark Glaess Minnesota Rural Electric Association Stephan Gunn sgunn@appliedenergygrou p.com LaSalle Ave Department of Commerce 85 7th Place E Ste 500 Applied Energy Group Saint Paul, rd Ave N Maple Grove, Pike Ln De Pere, WI Burl W. Haar burl.haar@state.mn.us Public Utilities Commission Suite th Place East Tina Koecher tkoecher@mnpower.com Minnesota Power 30 W Superior St

11 Nancy Lange Izaak Walton League of America Robert S Lee RSL@MCMLAW.COM Mackall Crounse & Moore Law Offices Martin Lepak N/A Arrowhead Economic Opportunity Suite Dayton Avenue AT&T Tower 901 Marquette Ave Chuck Center Dr Ste B Allan Lian alian@mnpower.com Minnesota Power 30 W Superior St John Lindell agorud.ecf@ag.state.mn.us Office of the Attorney General-RUD Nick Mark nick.mark@centerpointener gy.com CenterPoint Energy BRM Tower 445 Minnesota St LaSalle Ave Pam Marshall pam@energycents.org Energy CENTS Coalition 823 7th St E Andrew Moratzka apm@mcmlaw.com Mackall, Crounse and Moore AT&T Tower 901 Marquette Ave Gary Olson Product Recovery, Inc E Cliff Rd Burnsville, Kim Pederson kpederson@otpco.com Otter Tail Power Company 215 S Cascade St PO Box 496 Fergus Falls,

12 Narv Somdahl N/A Citizen 5100 W 102nd St Apt 209 Bloomington, Leo Steidel N/A The Weidt Group 5800 Baker Rd SaGonna Thompson Regulatory.Records@xcele nergy.com Minnetonka, Xcel Energy 414 Nicollet Mall FL

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