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/ \ <br />Elk River ~ <br />MUri1Clp~ Ut111t1eS <br />13069 Orono Parkway • PO. Box 430 <br />Elk River, MN 55330-0430 <br />November 5, 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 />On September 11, 2009, Otter Tail Power announced it's withdrawal from the Big Stone II <br />power plant project. The other primary Big Stone II participants include CMMPA, Heartland <br />Consumers Power District, Missouri River Energy Services, and Montana-Dakota Utilities. The <br />remaining four primary participants entered into discussion with a new prospect participant. <br />However, this new prospect participant will not be joining the project. On November 2°d, the <br />announcement was made that the Big Stone II project will not be built. Attached is the official <br />press release from Big Stone II. <br />Enclosed is a thank you letter from the City of Grand Marais and the Grand Marais Public <br />Utilities Commission thanking ERMU for ~roviding mutual aid in repairing their electric <br />distribution system after the September 28t windstorm. Scott Thoreson, Jeff Henning, Art <br />Gatchell, and Lex Anderson did a great job. Also enclosed is an article from the Cook County <br />News Herald about the windstorm. An invoice for the cost to ERMU to provide the mutual aid <br />has been sent to Grand Marais Public Utilities. <br />The City has submitted their numbers for the state diesel and gas bids. At the October 13tH <br />commission meeting, the commission directed staff to participate with the City in the bids for up <br />to 75% fuel usage. An analysis of the past three years usage was done. The utility fuel usage <br />numbers provided to the City to include with their submitted were the equivalent of 72% diesel <br />and 73% gas. <br />This month there was some issues with one of the generators at the landfill. A bearing went out <br />in a gear box that drives the oil pump. Fortunately, the damage was very minor and that engine <br />was up and running again in about 2 %2 days. It was found that one of the other three engines had <br />similar wear on the same bearing. Preventive maintenance is being done on the other three <br />englnes. <br />