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Mr. Hanson added that if ERMU were not called to run for the year there would be a <br />required one hour test run to verify its capacity. If needed, the test run would be <br />coordinated with the existing monthly run. <br />Chair Dietz asked staff to characterize maintenance costs. <br />Mr. Hanson responded there are some repairs staff will attempt to complete, but <br />otherwise costs could be in the tens of thousands to over one hundred thousand dollars <br />range. <br />Mr. Hanson explained that the agreement is for 60 months with the rate of $27,000 per <br />megawatt guaranteed for just the first two years due to potential market fluctuations. <br />Commissioner Stewart asked if staff had done a cost analysis on diesel and staff time <br />needed to participate in the program. <br />Mr. Tietz responded that no analysis had been done at this time. <br />Mr. Hanson contributed that there had been a planning review done on the project which <br />showed the program to be favorable to ERMU. Mr. Hanson continued that with the <br />existing monthly engine runs of roughly an hour in length, diesel fuel and staffing needs <br />would not be significantly different. He added that due to current weather forecasting <br />technologies, he was confident staffing would not be a challenge. <br />Mr. Hanson explained that legal staff had a few notes for updates related to insurance <br />liabilities and terminology, adding he would work with Voltus to clarify those options. He <br />continued that the terms of the agreement make it possible for ERMU to decide to stop <br />participating in the program while incurring no penalty. ERMU is only bound to not enter <br />into an agreement with a different organization during the 60-month agreement. <br />Moved by Commissioner Stewart and seconded by Commissioner Westgaard to approve <br />the Distributed Energy Resources Agreement between Elk River Municipal Utilities and <br />Voltus, Inc., subject to commission attorney approval. Motion carried 5-0. <br />6.0 BUSINESS DISCUSSION <br />6.1 Staff Updates <br />Mr. Hanson acknowledged Ms. Youngs for her one-year anniversary with ERMU. <br />Ms. Youngs announced an offer had been extended for the open customer service <br />representative position and the candidate had accepted. The start date will be the end of <br />February pending the successful completion of the onboarding process. <br />Elk River Municipal Utilities Commission Meeting Minutes <br />February 14, 2023 <br />Page 6 <br />