5.7. ERMUSR 10-21-2014 - Laserfiche WebLink

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Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Troy Adams, P.E. — General Manager John Dietz — Chair Al Nadeau — Vice Chair Daryl Thompson — Trustee MEETING DATE: AGENDA ITEM NUMBER: October 21, 2014 5.7 SUBJECT: 2014 Midwest Municipal Transmission Group Annual Meeting Update BACKGROUND: In 2006 the Utilities Commission authorized joining the Midwest Municipal Transmission Group (MMTG) to explore the potential to obtain ownership in the transmission system. Through that process ERMU entered into an agreement to participate through CMMPA in the CAPX2020 Brooking -Twin Cities Transmission Project in 2007. This investment in transmission assets represents ERMU's direction to own instead of rent. This investment provides revenue to mitigate transmission costs and help to lower ERMU electric rates. Since inception in 2006, MMTG has provided assistance to the membership in regards to transmission and generation for planning, construction, ownership /investment, operation/maintenance, administration/management, and regulatory/legal advocacy. The membership consists of over 50 municipal utilities, agencies, and associations from the Midwest. MMTG is governed by a volunteer board of directors on which ERMU has had a representative since 2006. In 2014, I served as the Chair. DISCUSSION: As Chair, I was able to influence the location of the annual meeting typically held in Iowa. This year the meeting was held at the Minnesota Municipal Utilities Association (MMUA) offices in Plymouth, MN. The financial report indicates that cash balances are strong for all zones. The recommendation for the Secretary- Treasurer was to not raise dues from 2014. This was put to a vote of the membership and approved unanimously. The dues formula is $200 base fee, plus $100/MW for general fund, plus $160 /MW for zonal fund. With the ERMU system peak reaching approximately 61MW our MMTG dues would likely be about $16,000. Regulatory and legal advocacy is a major part of what MMTG does for its members. MMTG is a member of the national organization Transmission Access Policy Study Group (TAPS). The TAPS membership is comprised of transmission- dependent electric utilities from over 35 states. Through TAPS, MMTG has greater representation in the fight for open and equal transmission access. TAPS represents its members through participation policy proceeding at the Federal P01E0E0 01 Page I of 2Au� Reliable Public Power Provider P O W E R E D To S e a v e 102