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A History of Elk River Municipal Utilities: Part II <br /> This section was completed for the Elk River Municipal Utilities Commission in 2015 by Rachel Peterson,Penny <br /> Petersen,and Charlene K.Roise,Hess,Roise and Company <br /> New Territory, New Leadership <br /> The previous history of Elk River Municipal Utilities (ERMU) concluded that only one <br /> prediction for the future was certain: both the utilities industry and the community served by <br /> ERMU would grow and evolve. Over the past two decades, that projection has proven accurate. <br /> As Elk River has changed, the services of ERMU have expanded and diversified along with it.82 <br /> The City of Elk River merged with Elk River Township in 1977 partly to strengthen its position <br /> among other communities in central Minnesota. This merger also strengthened ERMU's <br /> purchasing power with the United Power Association (UPA), which supplied it with electricity. <br /> That same year, ERMU joined the United Minnesota Municipal Power Agency, further <br /> increasing its ability to negotiate low rates with power providers.83 <br /> ERMU has long purchased at <br /> least a portion of its power <br /> from outside sources. Post- <br /> World War II increases in the <br /> use of large appliances <br /> contributed to a rising demand —. - <br /> for power that was too high <br /> for ERMU to meet on its own. <br /> Beginning in 1951, the Elk - <br /> River Utilities Commission <br /> decided to purchase electricity <br /> through Anoka County <br /> Cooperative and the Rural <br /> Cooperative Power <br /> Association. To improve local <br /> distribution, two new <br /> substations were constructed <br /> in 1978 and 1984.84 Power Plant Substation <br /> (Elk River Municipal Utilities) <br /> ERMU is a municipal utility <br /> and is therefore connected to the City of Elk River. The relationship between the two entities has <br /> been a complex one. ERMU is owned by the city and governed by a commission, with the <br /> commissioners appointed by the city. As a municipal entity, ERMU does not pay property taxes. <br /> In lieu of taxes, ERMU and the city agreed that ERMU would pay a flat sum to the city every <br /> year. <br /> 82 Hess,Roise and Company(hereafter HRC),"A History of the Elk River Municipal Utilities,"24. <br /> 83 Ibid.,23. <br /> 84"Elk River Municipal Utilities Celebrates Fifty Years of Service to Elk River and Surrounding Areas,"Elk River <br /> Municipal Utilities(hereafter ERMU)files;HRC,"A History of the Elk River Municipal Utilities,"23. <br /> 23 <br />