4.3. ERMUSR 06-14-2011 - Laserfiche WebLink

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Elk River Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk Rive, MN 5 5 3 30-0430 UTILITIES COMMISSION MEETING Phone: 763.441.2020 Fax: 763.441.5099 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 4.3 SUBJECT: CAPX2020 Brookin s Project U date BACKGROUND: In May 2006, the Utilities Commission authorized joining Midwest Municipal Transmission Group (MMTG) to explore the potential to obtain ownership in the transmission system. In February 2007, ERMU entered into an agreement to participate through Central Minnesota Municipal Power Agency (CMMPA) in the CAPX2020 Brookings-Twin Cities Transmission Project. In March 2011, the Commission and Council both approved Resolutions authorizing the Uti]ities participating in the Brookings Project through CMMPA for an amount not to exceed $7,140,953 without further action. DISCUSSION: Delano Municipal Utilities, a participant in the CAPX2020 Brookings project through CMMPA, has requested to be released from the project contract. Six of the participants investing in this project through CMMPA, including ERMU, have expressed interest in acquiring Delano's share. For ERMU, acquiring a share of Delano's ownership would not cause ERMU to exceed the maximum investment amount of $7,140,953 approved by the Commission and Council. The six interested participants have issued an offer to Delano. The proposal has been rejected and countered by Delano. The six participants are currently working on a counter offer to Delano's counter offer and are working to have an agreeable offer ready for Commission review at the time of the ERMU Commission meeting. ACTION REQUESTED: Staff will make a recommendation for action at the Commission meeting.