Laserfiche WebLink
Elk River Y <br /> Municipal Utilities UTILITIES COMMISSION MEETING <br /> TO: FROM: <br /> Elk River Municipal Utilities Commission Troy Adams, P.E. —General Manager <br /> John Dietz—Chair <br /> Daryl Thompson—Vice Chair <br /> Al Nadeau—Trustee <br /> MEETING DATE: AGENDA ITEM NUMBER: <br /> September 11, 2012 2.5 <br /> SUBJECT: <br /> Federal Energy Regulatory Commission Waiver of Standards of Conduct and Open Access <br /> Same-Time Information System Requirements <br /> BACKGROUND: <br /> In September 2008, Connexus Energy terminated the 10-year rolling "all requirements"power <br /> contract with Elk River Municipal Utilities (ERMU). In April 2010, the Utilities Commission <br /> authorizes the exploration of wholesale power supply options through participation in a resource <br /> planning coalition. In addition to this coalition, staff has been researching other wholesale power <br /> supply options. <br /> Elk River Municipal Utilities currently contracts the energy and capacity of our Landfill Gas-to- <br /> Electric Generation Plant and the capacity of our Diesel Generation Plant to Great River Energy <br /> (GRE). <br /> As a result of the work of Central Minnesota Municipal Power Agency (CMMPA), ERMU <br /> receives revenue through the Midwest Independent Transmission System Operator(MISO) <br /> Tariff Attachment 0 for our"high side"transmission facilities within our substations. Also <br /> through CMMPA, ERMU has invested in the CAPX2020 Brookings-Twin Cities Transmission <br /> Project. <br /> DISCUSSION: <br /> Although not currently subject to the Federal Energy Regulatory Commission(FERC) Standards <br /> of Conduct(SOC) and Open Access Same-Time Information System (OASIS) Requirements, it <br /> is possible that ERMU may become subject to those requirements. The ownership in generation <br /> and transmission with a change in wholesale power supply that includes selling the output of our <br /> generation facilities on the MISO market might create a situation where ERMU would be <br /> required to comply with these FERC rules. The SOC and OASIS Requirements would create an <br /> unnecessary burden on ERMU. Because ERMU is a small utility by FERC definition, there was <br /> precedent for waiver of the SOC and OASIS that potentially could be imposed under the <br /> R.3 Page 1 of 2 NATURE <br /> ® ► <br /> `� AfiURE <br /> Reliable Public <br /> Power Provider P o w r e r o T o 5 rxvr <br />