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~/ <br />Elk River -~ <br />Municipal Utilities <br />13069 Orono Parkway • PO. Box 430 <br />Elk River, MN 55330-0430 <br />February 24, 2009 <br />To: Elk River Municipal Utilities Commission <br />Jerry Takle <br />Jerry Gumphrey <br />John Dietz <br />From: Vance Zehringer <br />Phone: 763.441.2020 <br />Fax: 763.441.8099 <br />Enclosed is the packet for the Tuesday, February 24, 2009, Commission meeting <br />beginning at 4:30 P.M. <br />January 09 electric energy use is up compared to January 08 use by 9.8%. Colder <br />temperatures, United Health, and other minor load growth account for the increase. <br />Electric demand for the same period is up by only 2.9% -- this is a positive statistic. <br />January 09 water use is up compared to January 08 use by 8.6%. An unspecified portion <br />of that increase may be due to losses in abandoned homes in which water pipes froze and <br />burst when either gas or electric services were shut off for nonpayment. That problem is <br />being remedied and will be discussed under agenda item 6.1. Agenda item 6.1 includes, <br />for your consideration, a proposed Utility Policy and a City Ordinance regarding water <br />shutoffs in foreclosed/abandoned homes. <br />Work continues to find a replacement wholesale power supplier. To date, inquiries have <br />been made to Central Minnesota Municipal Power Agency, Connexus Energy (our <br />present power supplier for another 9.5 years), Wright-Hennepin Electric, and Minnesota <br />Municipal Power Agency. Several other possibilities have been identified, but no contact <br />has been initiated as of this date pending an initial offer from Connexus Energy. Refer to <br />Attachment A for project status. Also attached for your signatures is a copy of the <br />Confidentiality Agreement referred to in Attachment A. <br />Elk River Municipal Utilities is scheduled to present its annual report to the Elk River <br />City Council on March 2, 2009. Attachment B outlines the information we propose to <br />present. <br />