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Elk River M <br />Municipal Utilities <br />13069 Orono Parkway <br />Elk River MN 55330 <br />(763) 441-2020 <br />UTILITIES COMMISSION MEETING <br />c~~ <br />TO: FROM: <br />Elk River Municipal Utilities Commission Troy Adams, P.E. -Utilities Director <br />John Dietz -Chair <br />Daryl Thompson -Vice Chair <br />Al Nadeau -Trustee <br />MEETING DATE: AGENDA ITEM NUMBER: <br />Ma 8, 2012 6.1 <br />SUBJECT: <br />Staff U dates -Utilities Director <br />DISCUSSION: <br />On Apri124`h I attended the Connexus Energy Annual Meeting. This industry is truly a small <br />world. Connexus struggles with similar business issues as does ERMU and utilities can learn a <br />lot through observation of what works well for their competitors. Connexus is a member of <br />Great River Energy (GRE) and receives all of their power supply from GRE. Connexus has <br />worked to implement cost saving measures and new technologies to improve efficiencies and <br />reduce costs as a way to keep their rate increases in control. Many of their recent initiatives aze <br />also being implemented at ERMU. However, when approximately 75% of the operating costs <br />aze a pass through for wholesale power generation and transmission, it becomes difficult to <br />mitigate the wholesale power cost increases through the 25% of the budget you control. Focus <br />on power supply costs is important. On June 6`s I will be attending the GRE Annual Meeting. <br />From this I hope to be updated on how GRE intends to control costs and rates going forward. <br />This is especially important as ERMU is researching alternatives to GRE for wholesale power <br />supply. <br />On May 1~`, the Star News toured the ERMU Landfill Gas to Electric Generation Plant located at <br />the Elk River Landfill. The tour also included a presentation at the attached Education Training <br />Center. Representatives from Waste Management, Sherburne County and the Sherbume County <br />Boazd of Commissioners, ERMU, and the City of Elk River were present. The tour and <br />presentation transitioned to discussion on plant expansion and new technologies. The landfill is <br />now flaring off enough landfill gas to support an additional 3 engines. Also discussed was the <br />~t POIIAEAEOD1f <br />Reliable Public <br />Power Provider P o w e a e o r o S e n v e <br />