5.4 ERMUSR 12-13-2005 - Laserfiche WebLink

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Elk River ---- Municipal Utilities 13069 Orono Parkway phone: 763.441.2020 Elk River,MN 55330 Fax.763 441.8099 October 4. 2005 ' To: Elk River Municipal Utilities Commission Jerry Takle John Dietz ' Jim Tralle From: Bryan Adams Subject: 4 ' Engine/Generator at Landfill ' As \on are aware. we are pursuing the installation ol'the 4° engine generator at the Elk River Landfill. The cost of this addition is estimated to be $650.000. 0 ,rhe air permit application has been submitted to the MPC A. Preliminary indications are the\ desire further study \\hich takes more time. Our consultants feel the outcome will not change and a permit will be issued. '[he Elk River Landfill is also applying for a ' landfill expansion permit, and the MPCA is apparently having difficulty keeping these two permit applications separate. ' In the process of negotiation with Waste Management, it is apparent they desire more payment for their gas to cover their increased cost. We subsequently ask Great River Energy if the wholesale purchase power price will increase for the 40 unit. .1'hey in ' response, increased the payment for the 4`h engine which increases the revenue by approximately $1.538,000 over the remaining 16 sears of the purchase power contract. The issue now at hand is how we distribute these extra funds back to the 3 parties of ' Waste Management. Elk River Municipal Utilities and Sherburne County in an equitable fashion. 'fhe attached financial pro-forms reflect projected revenue costs and distribution. Description of these pro-forms is as follo\\5. Line 12 IL<isting purchase price of energy Line 35 Proposed purchase price or energy ' Linc 37 Net difference in revenue to he distributed alter appropriate expenses have been increased clue to addition of 41h unit. line 41 Increase in revenue to Waste Management through higher gas price total increase $595,589