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Mr. Tietz noted that while the contract amount exceeds the original project estimate by <br />$35,200, WEG can meet the required delivery date with a unit manufactured and assembled <br />in the United States. <br />Chair Dietz asked how the requested delivery date was determined. <br />Mr. Tietz responded that it was based on the date ERMU anticipates new customers would be <br />bringing significant energy needs to the system. <br />Mr. Tietz corrected an error in his memo, clarifying that $1.15 million will be paid in 2024 as <br />budgeted, with the remaining balance to be billed in 2026 upon delivery of the transformer. <br />Moved by Commissioner Stewart and seconded by Commissioner Zerwas to accept WEG <br />Transformers USA, LLC bid for transformer and award contract contingent upon final <br />review by legal counsel. Motion carried 4-0. <br />5.6 Future of ERMU Power Plant <br />Mr. Hanson presented his memo on the future of the ERMU power plant, emphasizing that it <br />is intended for discussion only. However, should the Commission wish to provide guidance, <br />staff will proceed accordingly. <br />Chair Dietz inquired about the possibility of selling the engines, either as whole units or for <br />parts. <br />Mr. Hanson responded parties could be interested in operating them elsewhere or they may <br />end up being sold as parts. <br />There was discussion. <br />Commissioner Stewart requested confirmation that the engines were fully depreciated. <br />Ms. Karpinski confirmed this. <br />Chair Dietz inquired about the disposal of unused diesel fuel. There was discussion about <br />options for disposal. <br />The commissioners agreed to proceed with the decommissioning of the plant. <br />Mr. Hanson stated that, given the significant value of the asset, he would return at a future <br />commission meeting with an official resolution for the plant's decommissioning, and plans for <br />the disposal of assets as well as on going use of the building. <br />Elk River Municipal Utilities Commission Meeting Minutes <br />August 13, 2024 <br />Page 6 <br />47 <br />