2.5 ERMUSR 01-10-2017 - Laserfiche WebLink

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Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Troy Adams, P.E.—General Manager John Dietz—Chair Al Nadeau—Vice Chair Daryl Thompson—Trustee MEETING DATE: AGENDA ITEM NUMBER: January 10, 2017 2.5 SUBJECT: Notice to Connexus Energy of Electric Service Territory Area 3 & 4 Transfer Date BACKGROUND: In March 2015 Elk River Municipal Utilities and Connexus Energy executed mutually agreeable terms with a multiyear arrangement for the Connexus service territory within the City of Elk River corporate boundary to be transferred to ERMU. DISCUSSION: On December 21, 2016, formal notice was given to Connexus documenting intent for a transfer of Areas 3 &4 in late 2017. Although the agreement only requires five months written notice of intent to transfer,this was given early to allow for planning and scheduling of the reintegration work needed to facilitate the transfer. It is preferable to coordinate a September 2017 transfer date; however, the actual date will be chose through a collaborative process with Connexus energy. Potentially,the two areas may be transferred on two separate dates similar to how Area 1 was transferred in 2015. As indicated on the attached overview map, Areas 3 &4 are located on the west side of Elk River on either side of the Elk River. In these two areas there are approximately 400 customers which are primarily residential. The reintegration,plant, and pre-work costs were all budget line items in the 2017 ERMU budget approved on December 13, 2016. ATTACHMENTS: • Notice of Electric Service Territory Area 3 and 4 Transfer Date—December 21, 2016. • 2015 Connexus Energy Electric Service Territory Transfer Agreement Overview Map El [ 011E111 a Page 1 of 1 NATURE Reliable Public Power Provider POWERED T o SERVE 79