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Elk River ^-, <br />Municipal Utilities <br />~ 3069 Orono Parkway • P.O. Box 430 Phone: 763.441.2020 <br />Elk River, MN 55330-0430 Fax: 763.441.8099 <br />UTILITTES COMMISSION MEETING <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 />Da I Thom son, Trustee <br />MEETING DATE: AGENDA ITEM NUMBER: <br />November 16, 2010 4.2 <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 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. In 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 />(RFP). <br />DISCUSSION: <br />On September 28, Nashwauk announced that they would not be participating in Phase 2 of the resource <br />planning study. A reallocation of costs was done and the approval cost for Elk River Municipal Utilities <br />increases from $19,444.44 to $25,000.00. The costs for Elk River Municipal Utilities that would be <br />approved at a future date for the Phase 2b increase from $8,334.00 to $10,714.00. Elk River Municipal <br />Utilities' staff had informed the Resource Planning Coalition that they will participate in Phase 2 at the <br />$25,000 contingent upon all other remaining participants also agrees to participate in Phase 2. On <br />October 12`h, Willmar announced that they too would not be participating in Phase 2. At that time, <br />ERMU and the remaining resource planning participants tabled all resource planning coalition activities <br />to allow for Willmar to reconsider their withdrawal from the coalition. Willmar Utilities Commission <br />chose to open the topic for reconsideration at their November 8th commission meeting and decided to <br />rejoin the coalition and participate in Phase 2 of the resource planning study. With Willmar back on <br />board, the RFP is being prepared for release. The results of the RFP will be received and analysis for <br />presentation to the participants in spring 2011. <br />ACTION REQUESTED: <br />No action required at this time. <br />