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<br />Elk River <br />Municipal Utilities <br />13069 Orono Parkway • P.O. Box 430 <br />Elk River, MN 55330-0430 <br />UTILITIES COMMISSION MEETING <br />~.i. <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 />Dar 1 Thom son, Trustee <br />MEETING DATE: AGENDA ITEM NUMBER: <br />Se tember 15, 2010 4.1 <br />SUBJECT: <br />Power Su ly O tions /Resource Plannin U date <br />BACKGROUND: <br />In September 2008, Connexus Energy terminated the 10-year rolling "all requirements" power contract <br />with Elk River Municipal Utilities. In April 2010, the Utilities Commission authorized entering into <br />"Phase 1" of a resource planning study with a coalition which includes Central Minnesota Municipal <br />Power Agency (CMMPA) as a participant. <br />DISCUSSION: <br />Since the presentation of sensitivity assessment and portfolio options that CMMPA gave to the coalition <br />participants on August 4`~' in Elk River, CMMPA staff has been working on some specifically requested <br />sensitivity analysis and finalizing the Phase 1 analysis into an executive summary. Attached for your <br />review is the hard copy of the power point presentation of the executive summary for Phase 1 that will be <br />presented at the commission meeting. <br />Phase 2 of the Resource Planning Coalition analysis is scheduled to begin September 16th and finish in <br />mid April, 2011. This second phase covers the Request for Proposal (RFP) and the evaluations of the <br />RFP submittals. For Elk River Municipal Utilities, the Phase 2 cost allocation would be $19,444.44. The <br />results of Phase 2 may show a need for additional portfolio risk analysis prior to signing of any power <br />contracts. This additional work would be defined as Phase 26. The need for Phase 26 would be <br />determined by collective decision by the coalition committee. The projected allocation of Phase 2b costs <br />for Elk River Municipal Utilities is $8,334. <br />ACTION REQUESTED: <br />Staff recommends approval to execute the Resource Planning Coalition Participation Agreement <br />Attachment 2 -Phase 2 and proceeding into the RFP stage of the resource planning. <br />