November 22, 2006

Mr. Ron Baxa

Chief Financial Officer

Kaw Valley Electric

P.O. Box 750640

Topeka, KS  66675

Re:      Draft Ordinance Amending Provision Related to Franchise Fee

Mr. Baxa:

As part of the 2007 City of Lawrence Budget, the City Commission adopted Ordinance No. 8030, increasing Westar Energy’s franchise fee for selling and distributing electricity to 5% of total gross receipts.  The City Commission also authorized the preparation of ordinances to increase franchise fees for other utility providers.  Enclosed please find a draft franchise ordinance amending the franchise fee for Kaw Valley Electric.  The ordinance proposes to increase the fee to five percent (5%). 

We would like to receive your comments to the proposed ordinance by December 8, 2006, if possible.  We would be happy to meet with you to discuss the ordinances, if you desire.  Please contact David Corliss’ assistant, Bobbie Walthall, at 832.3400 to schedule an appointment.  Thank you.

Sincerely,

Toni Ramirez Wheeler

Interim Director of Legal Services

Enc.