November 22, 2006

Ms. Larissa Long, Manager

Community Relations - Kansas

Aquila Networks

110 East 9^th Street

Lawrence, KS  66044

Re:      Franchise Fee

Dear Ms. Long:

The City is in the process of reviewing its franchise fees for utility companies.  We request your assistance in reviewing the fee Aquila, Inc. pays for the right and privilege to supply natural gas services to the City of Lawrence and its inhabitants.

When the City of Lawrence passed Ordinance No. 7155 granting a non-exclusive franchise to Kansas Gas Service (Aquila’s predecessor), the volumetric fee set forth in the ordinance translated to approximately five percent (5%) of gross receipts.  Is the current volumetric still equivalent to five percent of gross receipts?  I have enclosed a copy of Ordinance No. 7155 for your convenience.

We would appreciate receiving a response from you by December 8, 2006.  If you would like to meet to discuss the franchise ordinance, please contact David Corliss’ secretary, Bobbie Walthall, at 832.3400 to schedule an appointment.    Thank you.

Sincerely,

Toni Ramirez Wheeler

Interim Director of Legal Services

Enc.