Laserfiche WebLink
Ji <br />Elk River <br />Municipal Utilities <br />13069 Orono Parkway • P.O. Box 430 <br />Elk River, MN 55330-0430 <br />Apri14, 2008 <br />To: Elk River Municipal Utilities Commission <br />Jerry Takle <br />John Dietz <br />Jerry Gumphrey <br />From: Bryan Adams <br />Subject: Great River Energy PCA <br />Phone: ?63.441.2020 <br />Fax: 763.441.8099 <br />We are and will continue to see some significant PCA (power cost adjustment) on our power bill <br />from Great River Energy. Attached is an e-mail from John Gasal explaining the expected size <br />and reason for the large PCA's. Further explanation is as follows. <br />• Load growth up in January, requiring additional MISO purchases. Part of this was driven <br />by increased dual fuel sales. <br />This is a polite way of saying Great River Energy's dual fuel rate at 0.02130/KWH September <br />through May is not enough to cover costs. This rate will most likely be raised next year. <br />• Revenue from wind generation down due to MISO price less than budgeted. (Great <br />River Energy pays a fixed price for the wind generation while the revenue is based on the <br />hourly MISO price). <br />Great River Energy's wind purchase price is confidential, but say it is 5¢/KWH. The MISO <br />market pur~:hase price fluctuates hourly.. If the wind blows during off peak hours when the. <br />MISO market is Iow (2¢ - 3¢/KWH) Great River Energy loses money on the transaction which is <br />apparently happening. They pay 5¢ to the wind producer and sell it at 2¢/KWH to MISO <br />• Reti~enue from i~1ISO sales from Great River Energy's peaking stations down due to high <br />natural gas prices. <br />Great River Energy bids their generation into the MISO market. Due to the high gas costs,.their <br />gas turbine price to run is too high. Great River Energy is not getting any revenue from their gas <br />turbine to help offset expenses. <br />