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I <br /> Elk River <br /> Municipal Utilities <br /> Phone: 763.441.2020 <br /> 13069 Orono Parkway•P.O.Box 430 Fax: 763.441.8099 <br /> Elk River,IN 55330-0430 www.elkriverutilities.com <br /> February 23,2017 <br /> Elk River Landfill <br /> Mr.James Hamann <br /> 22460 Highway 169 <br /> Elk River,MN 55330 <br /> Subject: LFG to Electric Generation Facility Performance for 2016 <br /> Dear Mr.Hamann; <br /> Elk River Municipal Utilities(ERMU)is not able to provide a bonus this year as a result of the <br /> challenges that occurred during the year.As a result of the challenges with the facility the capacity <br /> factor was 93.68%. As a result of the capacity factor being less than 95%ERMU will not be issuing a <br /> bonus payment for 2016. <br /> ERMU recognizes and greatly appreciates your willingness to work with the partnership during this <br /> difficult time of an engine failure and increasing costs. We appreciate the waiver of gas cost for the <br /> majority of 2016 which helped tremendously in a financially difficult year. <br /> The measured production for 2016 was approximately 24.9 million kWh. That is equivalent to the <br /> average annual energy consumption of 2,580 residential customers of Elk River Municipal Utilities. <br /> If you have any questions,please feel free to contact Tom Sagstetter at(763)635-1332. <br /> Best regards, <br /> --liliteQ P ;l'if <br /> Thomas J. agstetter <br /> Conservation and Key Accounts Manager <br /> Cc: Elk River Municipal Utilities Commission <br /> Don Yurecko-Elk River Landfill Gas Plant Manager <br /> Troy Adams—Elk River Municipal Utilities General Manager <br /> P... <br /> OWERED BY <br /> [NATURE <br /> Reliable Public POWERED TO SERVE <br /> Power Provider <br />