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��i <br />Elk River <br />Municipal Utilities UTILITIES COMMISSION MEETING <br />TO: <br />FROM: <br />ERMU Commission <br />Mark Hanson — General Manager <br />MEETING DATE: <br />AGENDA ITEM NUMBER: <br />November 12, 2024 <br />5.13 <br />SUBJECT: <br />Amendment to Minnesota Municipal Power Agency Agreement <br />ACTION REQUESTED: <br />Approve ERMU Resolution 24-13 Amending the MMPA Agency Agreement <br />BACKGROUND: <br />Minnesota Municipal Power Agency (MMPA) is requesting approval of the attached agency <br />amendment regarding weighted voting to their power sales agreement with ERMU. <br />Weighted voting totals are used for specific actions of the MMPA Representatives, such as <br />approving new members and approving the issuance of debt. Currently, each MMPA member <br />gets one weighted vote, plus another vote for every 5,000 Megawatt -hours (MWh) it purchases <br />from MMPA in a year. The current weighted voting totals for 2024 are attached for reference. <br />DISCUSSION: <br />The MMPA Board of Directors identified an issue with the current weighted voting definition. A <br />member could receive a disproportionate number of votes from sales to a large customer if <br />MMPA invested capital to provide transmission and distribution service to the customer, rather <br />than the member. <br />MMPA's Representatives approved an amendment to MMPA's Agency Agreement changing <br />how weighted votes are calculated. The amendment would exclude Megawatt -hours delivered <br />to a customer when MMPA has made the investment in transformation or other facilities to <br />directly serve the customer, rather than the member. <br />NEXT STEPS: <br />MMPA's Agency Agreement requires approval by two thirds of members' governing bodies. <br />This means that approval is needed by the Elk River City Council in addition to the ERMU <br />Commission. ERMU staff will work with city staff to facilitate the council approval process. <br />ATTACHMENTS: <br />• MMPA Member Voting Totals, 2024 <br />• MMPA Resolution 2024-01 (Amending Agency Agreement —Weighted Voting Totals) <br />• ERMU Resolution 24-13 Amendment to MMPA Agency Agreement <br />Page 1 of 1 <br />Page 80 of 273 <br />