3.1.B. MINUTES 08-09-2011 - Laserfiche WebLink

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Page 2 Regular meeting of the Elk River Municipal Utilities Commission July 12, 2011 At this time Bob Thistle, the interim City Administrator, introduced himself. He wanted Commission and staff to know his door was always open. He then excused himself to take care of City business and said he would stop back if time permitted. 4.1 Update on Power Supply Options / Resource Planning In September 2008, Connexus Energy terminated the 10-year rolling "all requirements" power contract with ERMU. In April 2010, the ERMU Commission authorized entering into "Phase 1" of a resource planning study with a coalition which included Central Minnesota Municipal Power Agency (CMMPA) as a participant. In September 2010, the ERMU Commission authorized entering into "Phase 2" of a resource planning study which includes the release of a Request for Proposal (RFP). The RFP was issued on November 15, 2010. In May 2011, the ERMU Commission authorized entering into "Phase 2b" of the resource planning study which will include risk assessment of the proposals. On July I'`, Commissioner Al Nadeau participated in a conference call with CMMPA to go over the Resource Planning Coalition and the RFP process to date. On August 18a', Troy Adams and Al Nadeau will be attending a presentation of bid results at the CMMPA office in Blue Earth, MN. Concurrently, ERMU has been working with R.W. Beck, an SAIC Company, on developing a scope of work for a power contract analysis. This analysis would compare the results of the Resource Planning Coalition RFP and CMMPA recommended portfolio options with the power contract proposal from Connexus and Great River Energy. Troy Adams presented a cost estimate from R.W. Beck, an SAIC Company, to do the above mentioned analysis. Discussion followed regarding their estimate. Consensus was to get another bid and revisit at the next meeting or call a special meeting if there are time constraints. 4.2 Update on CAPX2020 Brookings / Twin Cities Transmission Project In May 2006, the ERMU Commission authorized joining Midwest Municipal Transmission Group (MMTG), to explore the potential to obtain ownership in the transmission system. In February 2007, ERMU entered into an agreement to participate through CMMPA in the CAPX2020 Brookings — Twin Cities Transmission Project. In March 2011, the ERMU Commission and Elk River City Council both approved Resolutions authorizing ERMU participating in the Brookings Project through CMMPA for an amount not to exceed $7,140,953 without further action. This maximum investment amount was based on CMMPA being awarded an increased project share from 2.2% to 5%. In May 2011 it was finalized that CMMPA would be awarded an increase project share from 2.2% to 3.6%. This results in the ERMU share increasing from $1,993,134 to approximately $4,961,495. Delano Municipal Utilities has made a request to be released from the CAPX2020 Brookings — Twin Cities Transmission Project contract. Six participants investing in this project through CMMPA, including ERMU, have expressed interest in acquiring Delano's share. For ERMU, acquiring a share of Delano's ownership would not cause ERMU to exceed the maximum investment amount of $7,140,953 that was previously approved by the ERMU Commission and Elk River City Council. Troy Adams asked for approval of the Transfer Agreement with the City of Delano and the Resolution regarding the transfer.