06-29-2009 ERMU MIN SPECIAL - Laserfiche WebLink

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Special City Council and ERMU Commission Page 4 June 29,2009 Mr.Adams stated the city should get more information from GRE and Connexus prior to making a decision on the Big Stone II project. Commissioner Dietz stated he would like any information provided by GRE and Connexus to be run by the city attorney. Council asked for the following information to be addressed at a follow-up meeting. • Flow chart showing where and when funding would need to be committed. • How much interest the utility would have paid in the 10 years before the Big Stone Project is ready to move forward. • Tracking of upfront costs. Mayor Klinzing asked anyone in the audience if they had any comments. Anna Pisola,Elk River Resident—Stated she would like to learn more about Energy City. She noted it was hard to ask people to pay for wind power due to its cost.She asked the Council to not close the door on other alternatives. Wade Lovelette,ERMU employee—Stated the Big Stone II plant would bum leaner and more efficiently. A citizen stated the city should consider wind power. Mr.Zehringer stated Elk River can only produce about 17%wind power from the turbines in this area,whereas the wind farms in southwest Minnesota produce about 35-40%power. He stated another problem with wind power is in transmitting it.He further noted that Big Stone II is also looking into harvesting wind power at their plant due to their location. Rob,a citizen stated someone has to take the lead on alternative,greener power sources and asked why not Elk River. Bob Schulte,CEO of CMMPA—Stated his company is available to help the municipal utilities.He stated they are big into renewables but that coal is still a needed source. He stated they are assuming they will meet the state's 1.5%energy savings goal in their planning. Councilmember Zerwas questioned if the city would be out the$2.6 million if the project was a no-go vote in September 2009. Mr.Schulte stated no. He stated the$2.6 million wouldn't be committed by the city until the financial dose was completed in fall 2010. A citizen stated the MN Public Utilities passed a mandate on cost caps for construction and permitting costs for transmission lines in Minnesota and she asked if the cost caps would apply to the city and affect its rates. Mr.Schulte stated this condition only applies to 12%of the Big Stone II project and only affects Ottertail's customers. MOVED BY COMMISSIONER THOMPSON AND SECONDED BY COMMISSIONER GUMPHREY TO CALL A SPECIAL JOINT MEETING OF THE ELK RIVER MUNICIPAL UTILITIES COMMISSION WITH THE CITY COUNCIL ON MONDAY,JUNE 13,2009,AT 6:00 P.M.,OR IMMEDIATELY