5.4. ERMUSR 04-13-2010 - Laserfiche WebLink

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Some of the cons include: Currently no participant commitment to the coalition, Many governing bodies still need to make the decision to participate Dne of the independently represented .municipal utilities makes up half of the capacity need. what happens if they don't participate? Doesn't address all transmission issues. Also need to analyze the potential impact to our Conservation improvement Program ~CIP} and Load Management knot necessarily included in this process} ® would need to meet the Renewable Energy Standards ORES}which may need to be analyzed separately, Another related issue is the Associate Membership that ERMU has with CMMP.A. As part of the process of exploring the BS~~ project, ERMU entered into this Associate Membership with a 1 year agreement. This agreement runs through May 26~h and requires 3 ~ days written notice to cancel. The cost for this membership was $3Dk per year, It would appear that this would become a redundant expense because ERMU would be paying for planning through the coalition, ~ will have more information on how this agreement plays into the coalition by the Commission meeting, At this point, there are lots of unknowns with this power coalition. However, there is potential for this to be a very beneficial venture for ERMU, In our peak summer months, our power bill runs near $2M, The costs of this study become relatively insignificant if the results can be applied to secure ERMU a more cost effective power supply option either through renegotiation or new supplier. This is an unbudgeted expense that wound need to be off set through capital expense reduction or reduction in net to reserves, Staff requests the authority to enter into this coalition and participate in the study phase of the process contingent upon the nature in outcome of some of the unl~aawns. These unknowns would included acceptable off ramp provisions in the coalition agreements, participation of enough other entities to provide economy of scale far the study and possible RFP pracess, and amount of allocated cost determined far Ellc River Municipal Utilities,