2.2 ERMUSR 02-13-2024 - Laserfiche WebLink

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Ms. Stewart shared her opinion that this project is an excellent opportunity for smaller agencies like ERMU to participate in transmission investment. Chair Dietz asked what ERMU's original investment into the project was. Mr. Hanson explained that ERMU was not required to invest actual dollars into this specific transmission project, rather it committed to contributing dollars if needed, likening the arrangement to cosigning on a loan, while ERMU does earn revenue. Chair Dietz asked how many communities are involved in the project. Mr. Hanson shared there are 15 communities involved and added CMPAS's projection that all participating communities will commit to the project. In responding to a question from Chair Dietz, Mr. Hanson explained that any money that needs to be paid will come from electric reserves. Commissioner Westgaard clarified that it was indeed electric unrestricted reserves, and asked if staff felt having to pay could impact capital projects. Ms. Karpinski shared that she didn't think it would create any issues. Mr. Hanson added that with final budget numbers for 2023 coming, staff expects to need a smaller interfund loan for the Advanced Metering Infrastructure (AM]) project. Chair Dietz asked staff the amount of interest ERMU has earned to date. Mr. Hanson responded slightly over 10%. Commissioner Stewart added that state mandates will likely increase the need for transmission going forward. There was discussion. Moved by Commissioner Stewart and seconded by Commissioner Westgaard to approve the transmission investment opportunity and to authorize up to and not to exceed $500,000. Motion carried 4-0. 6.0 BUSINESS DISCUSSION 6.1 Staff Updates Chair Dietz congratulated Mr. Hanson on being appointed as secretary for MMPA's board of directors. Elk River Municipal Utilities Commission Meeting Minutes January 9, 2024 Page 4 39