06-15-2009 CCM JT - Laserfiche WebLink

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Special City Council and ERMU Commission ~une 15, 2009 Page 3 Mayor Z~linzing stated rates and the availability of electricity is the most ifnportant consideration for residents. She stated the Council laas not had an opportunity to look at all options for ERMU power and should analyze all options further, The meeting was recessed at 6;50 p.m. The joint meeting reconvened at $;25 p.m. Ms. ~ohnson asked for the issues Cauncil would like staff to address. Counciltnember Gutnphrey questioned tl~.e timeframe the debt would be spread over and asked what would l~appen if ERMU needed additional megawatts in the future. Mr. Becl~ stated the payoff on the bonds would be dependent upon wl~at they are selling for. Mr. Steve Thompson stated CMMPA would act as an advisor and a resource planner for the city in regards to additional power needs. He stand CMMPA makes recommendations to each city and each city votes on whether they want to be in a project, He stated CMMPA is always reviewing future load growth, needs, and alternative power resources, He noted the city retains its autonomy. Councilmember Gumphrey expressed concern with investing tl~e city's money into this project. He questioned if all co~owner investors were in place at this tithe. Mr. Schulte stated no. He noted 5 were in place and there were still two potential co~owners. He stated all ca-owners would be in place before Ells River had to commit. Mr. Beck stated the city would be committed if it sent the letter of intent and the vote on September l1 was a "go~vote." Mr. Beck further noted the city wouldn't Have to become an owner but could become a member at a later date, ~A member would be more like a renter buying power from the plant. This would be similar to the city's current agreement with Connexus.~ Councihnember Moon expressed concerns with having onl~j one option wit11 tlae Big Stone Il protect He asked what would happen if the plant goes down, He stated there would be other alternatives for power with Connexus. A representar~ve noted that power companies do shaft swap agreements whereby they share energy off eacl~ other in order to mitigate these "lass of power" concerns. Zt was also noted that insurance could be purchased but this wouldn't assist the city in a major power loss immediately. Councilfnember Motin questioned if rates would be comparable with Connexus. He questioned if the city would be better off selling ERMU and still get the same rate current customers receive. Mr. Zehringer stated this would be unlikely because the other cooperatives would have to agree to the sell-off. Commission Dietz stated costs would go up for Connexus and city residents added to the system would be paying for the increase at that thee; Connexus users currently on the system would not cover those additional costs.