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4.7. SR 01-19-1999
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4.7. SR 01-19-1999
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<br />1)vCt~ <br /> <br />Page 2 <br />Regular meeting of the Elk River Municipal Utilities Commission <br />January 12, 1999 <br /> <br />. <br /> <br />2c Designate Elk River Star News official newspaper for 1999 <br /> <br />John Dietz moved to designate the Elk River Star News official newspaper <br />ofthe Elk River Municipal Utilities for 1999. George Zabee seconded the <br />motion. Motion carried 3-0. <br /> <br />3. *Consider Consent Agenda <br /> <br />George Zabee questioned the amount of payment due the City of Elk River <br />for mowing services in 1998. No further discussion of Consent Agenda items. <br /> <br />John Dietz moved to approve the Consent Agenda as follows: <br />12-8-98 minutes <br />December Check Register <br />Abbreviated Financials <br />George Zabee seconded the motion. Motion carried 3-0. <br /> <br />5.1 Review and consider GRE/Connexus Wholesale Power Rate to ERMU <br /> <br />Bryan Adams reported to the Commission on the progress of the wholesale power <br />rate negotiations. Discussion of the Demand costs were questioned and <br />responded to. An overall 7% +/- wholesale rate decrease can be expected from <br />GRE/Connexus for 1999. Wholesale rates will be expected to start rising in the <br />following year. In general, ERMU will receive the same rates, programs and <br />rebates, except capitol credits, that Connexus Energy receives from GRE on the <br />same time frame. This means that rates and programs will change annually, <br />and ERMU will no longer be required to re-negotiate every other year through <br />FERC. Further, Bryan Adams is directed by Commission to return to Connexus <br />with the request for receiving all programs. <br /> <br />. <br /> <br />5.2 Review and consider changes to Demand and Non-Demand Meter Rate <br /> <br />Commission reviewed the present electrical rates, as well as comparing them to <br />Connexus and Wright-Hennepin rates. It appears that no change in the residential <br />rates is indicated at this time. However, it appears that a decrease for Non- <br />Demand would be appropriate at this time. Discussion of the Demand Rate <br />was centered on the demand rather than the energy component. The <br />recommended rate change will be cash neutral since the demand will be off-set by <br />the decrease in energy. Further discussion of options for demand customers, <br />especially those with high low-load factors followed. James Tralle questions <br />whether or not customers understand the ramifications of a low-load factor. <br /> <br />. <br />
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