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Elk River <br />Municipal Utilities <br />13069 Orono Parkway • P.O. Box 430 <br />Elk River, MN 55330-0430 <br />October 6, 2009 <br />To: Elk River Municipal Utilities Commission <br />John Dietz <br />Jerry Gumphrey <br />Daryl Thompson <br />From: Troy Adams <br />Subject: Staff Updates -Director of Operations <br />Phone: 763.441.2020 <br />Fax: 763.441.8099 <br />Year to date, electric usage is up 1.02%. Comparing a rolling year block to a previous year <br />block, electric usage is up 3.98%. <br />As an associate member of Central Minnesota Municipal Power Agency (CMMPA), ERMU was <br />invited to attend the 2009 CMMPA Member Summit in September. I went to represent ERMU. <br />There were a number of pertinent presentations and it was worth my time to attend this event. <br />The Minnesota Department of Commerce gave a presentation on the Conservation Improvement <br />Program (CIP) changes for 2010. The impending carbon regulation and potential impact to <br />utilities was presented. Also, CMMPA updated the members on CapX transmission projects and <br />Big Stone II. ERMU is participating in the Brooking CapX project with Minnesota Municipal <br />Transmission Group and CMMPA. Attached is the meeting agenda. Also attached is a recent <br />CapX newsletter. <br />It has been well publicized that Otter Tail Power withdrew from the Big Stone II power plant <br />project early in September. The other primary Big Stone II participants include CMMPA, <br />Heartland Consumers Power District, Missouri River Energy Services, and Montana-Dakota <br />Utilities. The remaining four primary participants are currently in discussion with a new <br />participant. If the legalities and financials work for the new participant, the Big Stone II project <br />will continue. I will provide more information as this process transpires. Attached is the official <br />press release from Big Stone II. <br />This last month I met with individuals from both Xcel Energy and Heartland Consumers Power <br />District regarding ERMU's future power contract needs. Both were very interested in further <br />exploring the option of providing ERMU with a power contract. <br />Also, enclosed for your reading is the current issue of the MMUA Resource. <br />