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RESOLUTION NO. 24-10 <br />BOARD OF COMMISSIONERS <br />ELK RIVER MUNICIPAL UTILITIES <br />A RESOLUTION AUTHORIZING THE DECOMMISSION OF THE ELK RIVER MUNICIPAL <br />UTITILITIES POWER PLANT <br />WHEREAS, Elk River Municipal Utilities (ERMU) maintains a power plant, constructed in <br />1947; and <br />WHEREAS, since 1978, the power plant has not been fully operational because ERMU <br />has met all power generation needs through a cooperative purchasing agency; and <br />WHEREAS, ERMU has maintained the power plant for auxiliary purposes only; and <br />WHEREAS, operational costs to maintain the power plant continue to rise, including the <br />need for a substantial investment in repairs, likely to exceed $500,000; and <br />WHEREAS, ERMU's current distribution system includes multiple substations and <br />interconnected transmission and distribution tie -lines which provide significant <br />resilience to maintaining power within the City of Elk River; and <br />WHEREAS, given the reliability of ERMU's current distribution system without use of the <br />power plant, and the significant reinvestment needed to operate the power plant, staff <br />recommends that ERMU decommission the plant; and <br />WHEREAS, the Commission agrees that ERMU should decommission the power plant, <br />and investigate opportunities to repurpose the building; <br />NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE BOARD OF COMMISSIONERS OF <br />ELK RIVER MUNICIPAL UTILITIES, BASED UPON THE FOREGOING RECITALS <br />INCORPORATED HEREIN, AS FOLLOWS: <br />1. Staff should initiate the process to decommission the power plant <br />immediately, including ceasing all power generation operations at the plant. <br />2. Staff should proceed with decommissioning in as practical and efficient a <br />manner as possible in compliance with all local, state, and federal legal and <br />regulatory policies and processes required of ERMU. <br />232484v1 <br />