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To plan for the expansion of the water department, ERMU undertook the Springsted Study, <br /> which included a ten-year projection of the utility's financial capacity. After considering <br /> anticipated revenues, expenses, bonding capabilities, and fees, the commission decided that rates <br /> needed to increase in order to ensure funds for future growth.108 <br /> In 1998, ERMU approved an LED light installation project as an initiative for energy <br /> conservation. Previous proposals for LED lights were denied because commissioners had been <br /> concerned about the significant upfront costs. This time, the case was made that the LED fixtures <br /> would be more economical to operate than incandescent bulbs, and it was estimated that the <br /> installation costs would be recouped in two years. This gave the commission the confidence to <br /> approve the project.109 <br /> Also in that year, more infrastructure construction projects were given the green light. A joint <br /> project between ERMU and UPA for a new gas turbine was approved by the commission. The <br /> turbine was owned by the city, with UPA taking care of the planning,permitting, acquisition, <br /> and operation staff for the project. The turbine served as a peak load generator, operating only <br /> when demand was high. <br /> In 1999, UPA merged with the Cooperative Power Association (CP) and became Great River <br /> Energy (GRE). Since ERMU had been purchasing electricity though UPA, its contract was <br /> transferred to GRE. An "all requirements" purchase power agreement was in place between GRE <br /> member cooperative AEC and ERMU that provided a pass-through arrangement between GRE <br /> and ERMU. This new contract was immediately beneficial to ERMU, with its wholesale power <br /> rates decreasing by 7 percent.110 <br /> i <br /> PQ Oslo== <br /> � in <br /> Great River Energy Elk River Campus <br /> (Great River Energy) <br /> 101 Elk River Municipal Utilities Commission Minutes,January 13 and February 10, 1998. <br /> 109"Resolution 98-125,A Resolution of the City of Elk River,Resolution Approving the Exercise of Powers Under <br /> Minnesota Statutes,Chapter 453,Respecting a Certain Electric Power Generation Project,"ERMU files;Bryan <br /> Adams to the ERMU Commission,letter,December 2, 1998. <br /> 10 Elk River Municipal Utilities Commission Minutes,January 12, 1999. <br /> 29 <br />