4.2. ERMUSR 06-14-2011 - Laserfiche WebLink

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Elk River ---~ Municipal Utilities 13069 Orono Parkway • P.O. Box 430 L~lk River, MN 5 5 3 30-043 0 UTILITIES COMMISSION MEETING Phone: 763.441.2020 Fax: 763.441.8099 TO: FROM: Elk River Municipal Utilities Commission Troy Adams, P.E. -Director of Operations John Dietz, Chair Daryl Thompson, Vice Chair Al Nadeau, Trustee MEETING DATE: AGENDA ITEM NUMBER: June 14, 2011 4.2 SUBJECT: Power Su 1 Options /Resource Plannin Update BACKGROUND: In September 2008, Connexus Energy terminated the 10-year rolling "all requirements" power contract with Elk River Municipal Utilities. In April 2010, 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. In September 2010, the Utilities Commission authorized entering into "Phase 2" of a resource planning study which includes the release of a Request For Proposal (RFP). The RFP was issued on November 15, 2010. In May 2011, the Utilities Commission authorized entering into "Phase 2b" of the resource planning study which will include risk assessment of the proposals. DISCUSSION: The list of bidders has been shortened and CMMPA is looking to schedule a presentation with the participant's power planning committees soon. A presentation will be made to the Commission at a later date. Concurrently, staff has been meeting with Connexus and Great River Energy (GRE) on power contract renewal options. As previously discussed with the Commission, the power contract renewal bid proposed by Connexus and/or GRE will be compared with the results from the RFP process. This comparison will be conducted by a third party, R. W. Beck. On June 9`h ERMU, Connexus, GRE, and R. W. Beck held a meeting to discuss methods for comparison. The key to this bid may hinge on ERMU's position on territory acquisition. ACTION REQUESTED: No action required.