4.1. ERMUSR 07-13-2010 - Laserfiche WebLink

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UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Troy Adams, P.E. - Director of Operations John Dietz, Chair Jerry Gtunphrey, Vice Chair D 1 Thom son, Trustee MEETING DATE: AGENDA ITEM NUMBER: Jul 13, 2010 4.1 SUBJECT: Power Su ly tions 1 Resource Plannin U date BACKGROUND: hi September 2008, Connexus Energy terminated the 10-year rolling "all requirements" power contract with Elk River Municipal Utilities. In Apri1201Q the Utilities Commission authorized entering into "Phase 1" of a resource planning study with a coalition which includes Central Minnesota Municipal Power Agency (CMMPA) as a participant. L15l.US.l1V1V: The Resource Planning Coalition held a conference call on June 21 s`. During this call, the Resource Planning Coalition Confidentiality Agreement and Participation Agreement were finalized. Also, the scope of the planning will now take into consideration the Environmental Protecflon Agency's (EPA) new Reciprocating Internal Combustion Engine (RICE) regulations included in the EPA's efforts to regulate greenhouse gasses. These regulations will have emission requirements that will go into effect May, 2013. (Recently, the Senate rejected a resolution by Senator Murkowski, R-Alaska, that would have removed the authority the EPA is taking from the Clean Air Act to regulate greenhouse gases. The resolution was rejected by a vote of 53-47. This push by the EPA to regulate greenhouse gases really comes a reactive response from the current Administration in the wake of the failed Waxman/Mazkey "cazbon tax" legislation). The Coalition also approved a press release announcing the participants and the resource planning efforts. This press release is attached for you review. There is a conference call scheduled for July 9`". On July 20"`, there is a meeting in Blue Earth, MN scheduled to review results from Phase 1 of the resource planning study. After the press release, Connexus Energy contacted me to talk about ERMU's plans for territory acquisition and our power supply. On June 30`", I met with representatives from Connexus to talk about the big picture with respect to these topics. Attached is a confidentiality agreement between Coanexus and Elk River Municipal Utilities which will need to be executed prior to having any further power contract discussion with Connexus. ACTION REQUESTED: Staff recommends the Commission give authorization to execute the confidentiality agreement between Connexus and Elk River Municipal Utilities.