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score for 2011 was 99.994 percent,which was particularly remarkable because there had been two major storm-related outages that summer. ERMU's electric distribution system was more than 70 percent underground so it was better able to withstand damaging weather.151 Growth and Electric Service Territory In July 2012, the commission voted to extend ERMU's electrical service territory within the city of Elk River. Prior to the 1977 merger, ERMU provided electrical service to the Village of Elk River, while the township was served by Connexus. In 1991, ERMU negotiated a contract with Connexus for"a 20-year orderly electric service territory acquisition plan." By 2012, however, the agreement had expired, and there were 7,723 acres and 1,774 properties within the city limits of Elk River that did not receive electrical service from ERMU. The commission reasoned that by reaching this area, the economies of scale would reduce costs, and uniform service would allow for better planning of future facilities and quicker response when outages occurred. In addition, a larger customer base would improve ERMU's bargaining position as it looked for a new wholesale supplier.152 The majority of ERMU's budget, 74 percent, went to purchasing power. The remainder was allocated to administrative costs, depreciation, and distribution. Distribution was a key element of ERMU's business, with customers in Otsego, Dayton, and Big Lake Township as well as Elk River. ERMU earned the distinction of being one of the few municipalities in Minnesota with customers beyond its corporate boundaries.153 Minnesota Municipal Power Agency Since being notified in 2008 that Connexus would terminate its power contract in 2018, ERMU had diligently explored options for a future power supply, including an extension of the Connexus contract. ERMU established criteria for analyzing wholesale power suppliers that included the following: • Rates—Improve competitive position through lower wholesale power costs • Local Control —Obtain the ability to vote and have a voice in decisions affecting future costs • Reduce Risk—Develop stability by minimizing carbon regulation exposure • Communication— Gain industry knowledge by sharing information • Advocacy—Achieve safety in numbers by partnering with utilities with like interests After five years of analysis, ERMU chose a new supplier of wholesale energy, the Minnesota Municipal Power Agency (MMPA). The contract would begin in October 2018. Troy Adams explained the decision to the Le Sueur News Herald: "We spent five years looking at our future supplier partner. As a public power municipal utility, we sought competitive rates, and we "I ERMU,"Annual Report,"2012,n.p. 152 ERMU Commission Resolutions,July 17,2012,Elk River website,http://web 1-elkr.ci.elk- river.mn.us/WebLink8/DocView.aspx?id=100057&dbid=l (accessed March 18,2014). iss ERMU,"Annual Report,"2012,n.p. 43