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Elk River <br />Municipal Utilities <br />13069 Orono Parkway • P.O. Box 430 <br />Elk River, MN 55330-0430 <br />UTILITIES COMMISSION MEETING <br />Phone: 763.441.2020 <br />Fax: 763.441.8099 <br />TO: FROM: <br />Elk River Municipal Utilities Commission Troy Adams, P.E. -Director of Operations <br />John Dietz, Chair <br />Jerry Gumphrey, Vice Chair <br />Daz 1 Thom son, Trustee <br />MEETING DATE: AGENDA ITEM NUMBER: <br />June 8, 2010 5.3 <br />SUBJECT: <br />Review Annual Power Plant URGE Test <br />BACKGROUND: <br />Elk River Municipal Utilities operates and maintains four diesel generation units at our power <br />plant. These units are contracted to Great River Energy through a Power Transaction Agreement <br />at the current price of $2.75/kw/month based upon the proven capacity from the annual URGE <br />test. The current contract expired October 31, 2005 but was extended on an "evergreen" basis. <br />This allows the contract to extend the termination date on a one year incremental basis unless <br />notice is given by either ERMU or GRE no later that April 1 S` of that yeaz. <br />DISCUSSION: <br />The attached spreadsheet reflects this yeaz URGE test results. Over the past yeazs, the URGE <br />test results have steadily increased. This is due to maintenance, training, and familiarity with the <br />plant. Once again, ERMU staff did a great job performing this URGE test. The capacity results <br />from this test will result in $352,440 in annual payments from Great River Energy, an increase of <br />$792 from 2009. <br />ACTION REQUESTED: <br />No action required. <br />