2. SR 06-15-2009 - Laserfiche WebLink

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Elk River ,~., Munici~al Utilities 13069 Orono arkway Elk River, MN 55330 June 12, 2009 To: Elk River City Council and Elk River Municipal Utilities Commission From: Troy Adams Subject: Utilities' Electric Resource Planning Opportunities phone: 763.441.2020 fax: 763.441.8099 Elk River Municipal Utilities is currently in a rolling 10-year all requirements power purchase contract with Connexus Energy. In September 2008, Connexus Energy executed the termination clause giving ERMU ten years notice. Research into power suppliers began and has produced a number of options. One option that has risen to the forefront is the opportunity to purchase ownership in the Big Stone II power plant project. Because of fortunate timing, additional capacity in the power plant became available and Central Minnesota Municipal Power Agency has presented Elk River Municipal Utilities an opportunity to enter into a Big Stone II power sales agreement through them. To participate in this project, ERMU would need to sign a Letter of Intent by July 15, 2009. To research the viability of this opportunity and study the Utilities' existing and additional power supply needs that would be related to this option, ERMU entered into an agreement for a power supply study and planning with CMMPA and R.W. Beck. Because of the gravity of this decision to enter into this power sales agreement for both ERMU and the City of Elk River, CMMPA has requested that a presentation be made to both the Commission and Council. Representatives of both CMMPA and R.W. Beck will make presentations of the Big Stone II power plant project and the Power Supply Study conducted specifically for ERMU. A condensed overview report of CMMPA and the Big Stone II project is enclosed for your information. A preliminary version of R.W. Beck's study is enclosed for your review. A finalized version of R.W. Beck's study will be provided at the Commission/Council meeting June 15th The requested action for both the Commission and Council would be to review and consider the Big Stone II power plant project opportunity and power supply study. The Utilities Commission will meet early July to make their decision. If the Commission makes a motion to enter into this project, then the Commission and Council would need to have a joint meeting, potentially July 6th, to determine whether or not ERMU should participate.