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Elk River <br />Municipal Utilities <br />13069 Orono Parkway • P.O. Box 430 Phone: 763.441.2020 <br />Elk River, MN 55330-0430 Fax: 763.441.8099 <br />UTILITIES COMMISSION MEETING <br />TO: FROM: <br />Elk River Municipal Utilities Commission Wade Lovelette -Technical Services Superintendent <br />John Dietz -Chair Troy Adams, P.E. -Director of Operations <br />Daryl Thompson- Vice Chair <br />Al Nadeau -Trustee <br />MEETING DATE: AGENDA ITEM NUMBER: <br />Ma 10, 2011 53 <br />SUBJECT: <br />Review Annual Power Plant URGE Test Results <br />BACKGROUND: <br />Elk River Municipal Utilities operates and maintains four diesel generation units at our power plant. <br />These units are contracted to Great River Energy (GRE) through a Power Transaction Agreement at the <br />current price of $2.75/kW/month based upon the proven capacity from the annual Uniform Rating of <br />Generating Equipment (URGE) test. The current contract expired October 31, 2005 but was extended on <br />an "evergreen" basis. This allows the contract to extend the termination date on a one year incremental <br />basis unless notice is given by either ERMU or GRE no later than April 151 of that year. <br />DISCUSSION: <br />The 2011 URGE test went well and will result in $352,968 compensation from GRE over the next year. <br />This is an increase of $528 from the 2010 URGE test. Over the years, the results have steadily increased. <br />Looking back over the past few years: <br />2005 = 10,456 kW <br />2006 = 10,488 kW <br />2007 = 10,576 kW <br />2008 = 10,600 kW <br />2009 = 10,656 kW <br />2010 = 10,680 kW <br />2011 = 10,696 kW <br />This trend is directly related to a high priority on maintenance, training, and staff familiarity with the <br />plant. ERMU staff has done an excellent job maintaining these aging engines. This effort is evident in <br />the test results. Steve Ziemer-Plant Operator/Mechanio, Michael Price-Lead Electrical Technician, <br />and Adam Freiberg -Electrical Technician have once again done an excellent job! <br />ACTION REQUESTED: <br />No action required. <br />