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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: 763.44 L2020 <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 />October 12, 2010 4.~ <br />SUBJECT: <br />Power Su ly Options /Resource Plannin Update <br />BACKGROUND: <br />In September 2008, Connexus Energy terminated the 10-year rolling "all requirements" power contract <br />with Elk River Municipal Uti]ities. In April 2010, the Utilities Commission authorized entering into <br />`'Phase I" of a resource planning study with a coalition which includes Central Minnesota Municipal <br />Power Agency (CMMPA) as a participant. [n September 2010, the Utilities Commission authorized <br />entering into "Phase 2" of a resource planning study which includes the release of a Request For Proposal. <br />DISCUSSION: <br />On September 28, one of the participants announced that they would not be participating in Phase 2 of the <br />resource planning study. A reallocation of costs was done and the approval cost for Elk River Municipal <br />Utilities increases from $19,444.44 to $25,000.00. The costs for Elk River Municipal Utilities that would <br />be approved at a future date for the Phase 2b increase from $8,334.00 to $10,714.00. This change has <br />delayed the process because many of the participants needed to obtain approval from their governing <br />bodies. Elk River Municipal Utilities' staff has informed the Resource Planning Coalition that they will <br />participate in Phase 2 at the $25,000 contingent upon all other remaining participants also agrees to <br />participate in Phase 2. <br />ACTION REQUESTED: <br />No action required at this time. <br />