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Connexus would significantly raise rates. Vance Zehinger, a consultant to ERMU, told the <br /> council that Connexus has "given us a glimpse of what could be coming down the pike, and it's <br /> not pleasant."143 <br /> Even though ERMU had been purchasing <br /> power through GRE for many years and <br /> GRE's headquarters, power plant, and <br /> F-a decommissioned nuclear power plant were <br /> in Elk River, ERMU was not a member of <br /> the generation and transmission <br /> cooperative. After UPA and CP had merged <br /> and formed GRE, ERMU purchased power <br /> through a member cooperative of GRE, <br /> Connexus Energy. This arrangement <br /> distanced ERMU from generation and <br /> transmission decisions that directly affected <br /> Theresa Slominski(L), Vance Zehringer(C), and Troy ERMU's wholesale power costs. The <br /> Adams,P.E. (R)reporting to the city council on not <br /> selling ERMU. termination notice by Connexus Energy <br /> (Elk River Star News,July 6, 2009) provided an opportunity for ERMU to <br /> evaluate what was best for their customers. <br /> As a result, ERMU began the long process <br /> of evaluating their options. <br /> In June 2009, ERMU had the opportunity to <br /> become a partner in the proposed <br /> development of the Big Stone II (BSII) <br /> power plant in South Dakota. BSII would be <br /> _ built next to the existing Big Stone I plant, <br /> and both would be fueled by coal from the <br /> Powder River Basin in Montana and <br /> Wyoming. The project was estimated to <br /> John Dietz(standing)speaking to the Elk River cost between $1.6 and$1.7 billion, with <br /> Citizens League on why he voted against the ERMU anticipated to contribute $90 <br /> Big Stone II power plant million.144 <br /> (Elk River Star News, September 11, 2009) <br /> Buying into BSII would allow ERMU to <br /> secure very low energy rates. Convincing the public to support the project was difficult, <br /> however, because the coal-burning plants were stigmatized by negative environmental impacts. <br /> In addition, many were concerned about the plant's price tag.145 <br /> Following extensive analysis and public comment, a special joint meeting of the city council and <br /> utilities commission was called in June 2009 to consider the BSII investment. Due to the high <br /> 143"New Organizational Structure at Utilities,"Elk River Star News,March 5,2009;Joni Astrup,"Elk River Has <br /> Chance to Buy into Plant,"Elk River Star News,June 19,2009. <br /> 144 Astrup,"Elk River Has Chance to Buy into Plant." <br /> 145 Jim Boyle, "Time Running Out on Big Stone,"Elk River Star News,July 6,2009. <br /> 40 <br />