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go higher. Winters claimed that he was "over a barrel," since federal regulators were forcing
<br /> liquidation of the Baehr holding company. He finally agreed to accept $50,000 for the"total
<br /> physical inventory of the Elk River Power and Light Company including transmission lines [a
<br /> high line to Monticello and lower-voltage lines to Zimmerman and Dayton],power dam, flowage
<br /> rights, car,truck, and all material and supply on hand."On August 22, the Council passed a
<br /> $70,000 bond resolution to finance the purchase and make necessary improvements.49 Six weeks
<br /> later, on October 4,the Sherburne County Star News reported: "This is an important day in the
<br /> history of Elk River, as it is today that the final transfer of the power plant and complete electric
<br /> system of the Elk River Power& Light Company to the village will be made."5°
<br /> Changeover of Power
<br /> To highlight the change of ownership, the Council christened its new business the Elk River
<br /> Public Utilities. The name was changed to Elk River Municipal Utilities in about 1949,probably
<br /> in response to amendments to the state law regarding municipal ownership of utilities.51
<br /> Although originally intending to appoint a three-person commission to manage the Utility's
<br /> affairs, the Council apparently decided to directly oversee initial operations. L. G. Nelson, who
<br /> had supervised the utility for Baehr for nearly twenty-five years,was replaced by Warden C.
<br /> Holsbo of Elkhorn, Wisconsin. Holsbo was appointed"superintendent of public utilities,"the
<br /> first time that management of electric, water and sewer services was combined. Mabel Nord
<br /> became the village's clerk and bookkeeper,responsible for the municipal liquor store as well as
<br /> the utilities.52
<br /> Minor repairs were undertaken immediately, while alternatives were considered for Elk River's
<br /> outdated,under-capacity system. The Council contacted a number of municipal utilities that
<br /> relied primarily on their own generating facilities, as well as others that purchased most or all of
<br /> their power from outside sources. Based on their findings,the Council concluded that economics
<br /> favored self-sufficiency. This was especially the case in Elk River, where the hydroelectric
<br /> plant's production was of some value, and existing staff could manage additional operations.
<br /> Within a month after purchasing the utility,the Council directed Toltz, King and Day to draft
<br /> plans and prepare cost estimates for a diesel engine to serve as an auxiliary to the hydroelectric
<br /> generators. In March 1946, the Council expanded its original concept, requesting bids for two
<br /> 750-horsepower, 550-kilowatt diesel engines. At some point in the planning,the diesel engines
<br /> became the system's main power source, with the hydroelectric operation maintained as a back-
<br /> up for peak loads and emergencies.53
<br /> 49 Elk River Village Council Minutes,August 22, 1945; "Elk River Makes Purchase of Local Hydro-Electric
<br /> System";"Holding Company to Be Liquidated,"New York Times,November 18, 1943.
<br /> so"Final Signing of Papers Today Transfers System to Village,"Sherburne County Star News,October 4, 1945.
<br /> 51 Elk River Village Council Minutes,November 5, 1945.For a discussion of the 1907 ordinance creating utilities
<br /> commissions and the subsequent 1949 amendments,see Coke,"Public Utilities Commissions in Minnesota
<br /> Villages," 17-27.
<br /> 52"Village of Elk River Takes Over Complete Power and Light Plant and System Next Week,"Sherburne County
<br /> Star News,September 27, 1945.
<br /> 53"Village Will Proceed with Plan to Purchase Diesel Plant,"Sherburne County Star News,March 7, 1946.
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