ERMU RES 12-01 - Laserfiche WebLink

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I . As ERMU's electric service territory has grown since 1991 ERMU has realized increased economies of scale which has helped reduce unit costs and improve the value of electric services provided to customers. Continued expansion will further improve these economies of scale and reduce electric costs for all citizens of the City in the future. 2. The increased customer base and load which ERMU has realized since 1991, and which would continue to build if ERMU's electric service territory continues to expand, has improved the City and ERMU's ability to market Elk River as a desirable location for large power users, such as data centers. 3. Having a uniform service territory for all municipal services will improve planning by the City and ER AU for future development, facilities and maintenance for water, wastewater, storm sewer and electric service throughout the City of Elk River. 4. Having ERMU provide electric service to areas within the City which the City is promoting for economic development, particularly areas within the City currently designated for urban services, will create additional opportunities for cooperation and collaboration between the City and ERMU to promote economic development. 5. Having uniform municipal services throughout the city limits enhances the ability of the City and ERMU to provide services with local control and local accountability and will cause less confusion for electric customers. 6. ERMU, being locally based and serving the bulk of the City of Elk River already, would be able to provide the expansion areas with reduced dispatch distances and reductions in response time when electric utility personnel respond to outages, fires and traffic accidents involving energized electrical utility equipment. 7. As ERMU enters the market over the next six years for a wholesale power supplier, the increased customer base and load which an expansion of ERMU's electric service territory within the City would provide would improve ERMU's marketability to a wholesale power supplier or power agency, therefore potentially reducing electric costs for citizens within the city limits of the City of Elk River. 8. Increasing ERMU's customer base and revenues would increase the annual revenue transfer which ERMU contributes to the City. 9. Expansion of ERMU's electric service territory would be at no cost to the City or the City's taxpayers. WHEREAS, in light of these benefits the Board, on June 12, 2012, began the process of developing an offer or offers to acquire all or portions of the electric service territory within the corporate limits of the City of Elk River which it does not currently serve; and