4.1. ERMUSR 05-10-2011 - Laserfiche WebLink

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Elk River Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk River, MN 55330-0430 UTILITIES COMMISSION MEETING Phone: 763.441.2020 Fax: 763.441.8099 TO: FROM: Elk River Municipal Utilities Commission Troy Adams, P.E. -Director of Operations John Dietz, Chair Daryl Thompson, Vice Chair Al Nadeau, Trustee MEETING DATE: AGENDA ITEM NUMBER: May 10, 2011 4.1 SUBJECT: Power Supply O lions /Resource Planning Update BACKGROUND: In September 2008, Connexus Energy terminated the 10-year rolling "all requirements" power contract with Elk River Municipal Utilities. In April 2010, the Utilities Commission authorized entering into "Phase 1" of a resource planning study with a coalition which includes Central Minnesota Municipal Power Agency (CMMPA) as a participant. [n September 2010, the Utilities Commission authorized entering into "Phase 2" of a resource planning study which includes the release of a Request For Proposal (RFP). The RFP was issued on November 15, 2010. DISCUSSION: Utilities counsel worked through review and revision of the bidder's confidentiality contracts and they have been completed for execution. CMMPA hosted a meeting in Blue Earth, MN on Friday April 15`n at which the Resource Planning Coalition narrowed the list of bidders to a short list. From this short list, CMMPA will be developing portfolio options for each of the Coalition participants. In addition to this, CMMPA will begin the "Phase 2B -Portfolio Risk Analysis for Evaluation". This process will help to quantify risks to make comparisons between portfolio options easier for the governing bodies the making decisions. Phase 2B had been identified as a separate process back in September 2010 when the Utilities Commission authorized entering into Phase 2. Phase 2B estimated to cost $75,000. If all existing Resource Planning Coalition participants enter into Phase 2B, ERMU's cost share would be $10,714. The costs associated with the Resource Planning Coalition are budgeted through our Associate Membership in CMMPA. Attached is the Attachment 2B to the Resource Planning Coalition Participation Agreement as well as a document prepared by CMMPA to highlight why the participants might consider entering into Phase 2B. ACTION REQUESTED: Staff recommends the Commission continuing participation with the Resource Planning Coalition and authorizing entering into Phase 2B for $10,714.