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for this work is critical. This has been included into the 2017 budget as a line item which will be <br /> discussed in greater detail during the budget adoption agenda item discussion. <br /> • As previously communicated, ERMU and Connexus Energy representatives have identified an <br /> area of dispute regarding Loss of Revenue(LOR) calculations outlined in the Electric Service <br /> Territory Agreement(agreement)dated March 20, 2015. On December 1, Greg Ridderbusch the <br /> Connexus Energy President/CEO provided written notice initiating the alternative dispute <br /> resolution process outlined in the agreement. This action follows previous discussions I have had <br /> with Mr. Ridderbusch as well as discussions between our legal counsels. This alternative dispute <br /> resolution process states that"upon written request of either Party, representatives with settlement <br /> authority for each Party shall meet in person and confer in good faith to resolve the dispute." <br /> Providing written request to initiate the alternative dispute resolution process allows for <br /> Connexus to proceed into formal dispute on the LOR calculation through the Public Utilities <br /> Commission or the courts. The dispute in the LOR calculation is in regards to the definition of <br /> "Municipal Development." Initiation of the alternative dispute resolution process does not freeze <br /> any current or future electric service territory transfers as covered through the agreement. <br /> • On November 16, I participated in a small solar focus group discussion hosted by Minnesota <br /> Rural Elective Association(MREA). The participation was by invitation only and the discussion <br /> panel included six different utility representatives plus MREA's President/CEO. The panel <br /> included three cooperative generation/transmission entities (G&Ts),two metro electric <br /> cooperative distribution utilities, and one municipal utility. We discussed current solar programs, <br /> differences in community opinion on solar/renewables and general industry considerations. The <br /> discussion was robust and beneficial for all. Hopefully this will lead the way to future focus <br /> group discussions expanded to multiple industry business models. <br /> • The 2017 APPA Legislative Rally in Washington D.C. is scheduled for February 26—March 1. <br /> This conference will likely be highly critical for us because of the anticipated changes coming <br /> from the 2016 election. The preliminary travel and training budget reflects one manager and one <br /> Commissioner attending this conference. We will need to know how many and who are attending <br /> as soon as possible. <br /> • Similarly, the 2017 Minnesota Municipal Utilities Association(MMUA) Legislative Rally in St. <br /> Paul will be highly critical due to the changes from the 2016 election. This conference will be <br /> held January 31 —February 1. It is less urgent to identify who will be attending this event prior to <br /> 2017. <br /> • I attended the MMUA board of directors meeting on December 6. This meeting is in conjunction <br /> with their T&O Conference in St. Cloud which runs December 6-8. <br /> ATTACHMENTS: <br /> • City of Elk River Ordinance 16-27 Amending, Chapter 2, Article V Regarding Membership of <br /> the Public Utilities Commission of the City of Elk River, Minnesota, City Code dated 12/5/2016 <br /> • Connexus Energy email Dispute Resolution—Written Request to Meet dated 12/1/2016 <br /> POWERED BY <br /> Page 2 of 2 <br /> [NATURE <br /> Reliable Public <br /> Power Provider POWERED To S E a v E <br /> 104 <br />