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Commissioner Westgaard noted 2022 presented challenges with higher power cost <br />adjustments and the field services building project. He added that the margins may not have <br />reached the levels seen in other years but that the priority is providing reliable utilities at a <br />reasonable rate and doing that without having a negative balance. <br /> <br /> Commissioner Stewart recommended that financial presentations include a visual <br />representation of the data to aid in understanding. <br /> <br /> Chair Dietz shared his struggle with finding the appropriate level for finances which allows <br />ERMU to provide affordable services while having the funds to cover operations expenses. He <br />commended staff for their efforts. <br /> <br /> Commissioner Bell added that staff comes to the meeting prepared and makes him <br />comfortable that things are getting done properly. <br /> <br />5.4 Voltus Distributed Energy Agreement <br /> <br />Mr. Hanson presented his memo on the agreement with Voltus, a power aggregator who <br />locates excess generation capacity and makes it available to the grid in emergency <br />situations. Mr. Hanson shared that ERMU’s generators are eligible for the program which <br />involves an arrangement similar to a retainer with compensation based on the amount of <br />megawatts the entity can produce. <br /> <br />Mr. Hanson explained that next steps would be determining ERMU’s production capacity <br />and signing the agreement, after which ERMU could then, at any point, receive six-hour <br />notice to run the generators, with an average run duration of 4 hours. He explained that <br />the program pays entities $27,000 per megawatt of capacity and an additional $2,200 per <br />megawatt hour of actual run time. Mr. Hanson shared his opinion that the program could <br />generate annual revenue anywhere from $150,000 to $200,000. <br /> <br />Mr. Hanson added that both Minnesota Municipal Utilities Association and Minnesota <br />Municipal Power Agency had reviewed and supported ERMU’s pursuit of the agreement. <br /> <br />Chair Dietz asked if the equipment is in good enough condition to run reliably. <br /> <br />Mr. Hanson explained that there are expected maintenance costs that could be covered <br />by program revenue. <br /> <br />Chair Dietz asked if the program requires more staff time. Mr. Hanson responded that <br />because ERMU already does monthly tests of the generators it would not. <br /> <br />Mr. Hanson explained that there are no penalties if ERMU were unable to run its <br />generators when called to, there would just be a restructuring of compensation for the <br />following year based on performance. <br />54