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�i <br />Elk River --�- <br />Municipal Utilities UTILITIES COMMISSION MEETING <br />TO: <br />FROM: <br />ERMU Commission <br />Mark Hanson — General Manager <br />MEETING DATE: <br />AGENDA ITEM NUMBER: <br />February 14, 2023 <br />6.1a <br />SUBJECT: <br />Staff Update <br />ACTION REQUESTED: <br />None <br />DISCUSSION: <br />• As stated in my mid -month update, the conservation & key accounts manager and I <br />attended Minnesota Municipal Utilities Association's (MMUA) Legislative Conference last <br />week. Although several legislative issues were discussed, most of the conference was <br />focused on a proposed bill that would mandate 100% carbon -free energy production by <br />2040. The bill has since passed through both legislative bodies along party lines and was <br />signed by Governor Walz on Tuesday, February 7. Recent media coverage on the bill can be <br />found here. <br />Proponents of the bill stated it was necessary to encourage the technological innovations <br />and grid stabilization needed to meet the 2040 deadline. In the short term, the bill will likely <br />increase power costs and reduce reliability as carbon -free energy will not always be <br />available when needed. <br />MMUA, Minnesota Rural Electric Association, and the entirety of their membership, <br />opposed the bill due to insufficient battery technology, grid reliability, and renewable <br />energy efficiency. The bill is also expected to drive up the cost of renewable energy because <br />it penalizes the use of fossil -fuel based energy unless offset by the purchase of renewable <br />energy certificates (RECs). RECs are used to track renewable energy production and usage <br />since the modern electrical grid can pull energy from virtually anywhere in the county. <br />• 1 attended the February 6 City Council meeting to observe the commission interviews and <br />the acceptance of WSB's final report on the NE/NW Urban Services Expansion effort. Two <br />candidates were interviewed: Maija Myhra and Nicholas Zerwas. The Council will select a <br />candidate at their February 21 meeting. The Council accepted WSB's final expansion report <br />after hearing concerns expressed by landowners representing two properties. In his motion <br />to accept the report, Councilmember Westgaard noted the report is for guidance only and <br />does not direct the City Council or the Utilities Commission in any way. <br />Page 1 of 2 <br />