4.1. ERMUSR 10-09-2012 - Laserfiche WebLink

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Elk River .M. Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Troy Adams, P.E. —General Manager John Dietz—Chair Daryl Thompson—Vice Chair Al Nadeau—Trustee MEETING DATE: AGENDA ITEM NUMBER: October 9, 2012 4.1 SUBJECT: Power Supply Options /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. In 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. In May 2011, the Utilities Commission authorized entering into "Phase 2b" of the resource planning study which will include risk assessment of the proposals. In addition to working with the Resource Planning Coalition, staff continues to explore other power supply options. DISCUSSION: The following are a few updates regarding the research into ERMU's next wholesale power supply contract: 1. Staff attended a Missouri River Energy Services (MRES) board meeting September 13 in Sioux Falls, SD. An update will be provided at the meeting. MRES will also be holding an Area Meeting in Alexandria, MN on October 25 at 9:00am. An invitation has been extended to ERMU to attend. 2. ERMU is currently an Associate Member of CMMPA. This was done during in conjunction with the Resource Coalition work. The associate membership is $2,500 and renews month to month. CMMPA has contacted ERMU staff about possibilities of participating in an upcoming resource planning project. r l I P O I S E R E D 1 Page 1 of 2 NATURE) Reliable Public Power Provider POWERED T o SERVE