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Elk River <br /> Municipal Utilities UTILITIES COMMISSION MEETING <br /> TO: FROM: <br /> Elk River Municipal Utilities Commission Tom Sagstetter—Conservation and Key Accounts <br /> John Dietz—Chair Manager <br /> Al Nadeau—Vice Chair <br /> Daryl Thompson—Trustee <br /> MEETING DATE: AGENDA ITEM NUMBER: <br /> August 9th, 2016 4.2 <br /> SUBJECT: <br /> Landfill Gas Plant Engine Repair and Operational Cost Update <br /> BACKGROUND: <br /> As part of the ongoing evaluation of the Elk River Landfill Gas Plant(LFGP)generating facility,ERMU <br /> met with Waste Management and Sherburne County representatives on July 21'to discuss current and <br /> future operations of the facility and followed-up on the nine action items identified at the May 23rd <br /> meeting. <br /> DISCUSSION: <br /> The action items and a summary of the discussion are listed below. <br /> 1. Waste Management(WM)will facilitate an in person or conference call with a representative <br /> within the WM organization that has experience in marketing energy production in the MISO <br /> market. <br /> • WM confirmed that the current contract that is in place is the best option for electric <br /> production sales in the current market. WM will continue to monitor the MISO market <br /> and the sale of electric production from other similar landfill gas plants in MISO. <br /> 2. WM will research the operational costs of output from similar plants that operate on 100%natural <br /> gas. This will be the baseline to determine the feasibility of blending landfill gas with natural gas <br /> to determine if efficiencies and/or production can be increased. <br /> • At this time the WM facility operating on 100%natural gas does not have enough data to <br /> do an analysis. The plant has only been operating for a couple of months using 100% <br /> natural gas. <br /> 3. Sherburne County will review the bonus structure. <br /> • Based on the contracts and past practices,the bonus will continue to be paid if the <br /> operational costs permit. If the facility does not meet the goals there will be no bonus <br /> paid to Sherburne County. <br /> 4. ERMU will continue to research the potential for MN Sales tax refund. <br /> • ERMU has reviewed all invoices going back to 2013 and has worked with WM staff to <br /> determine which invoices are eligible for a sales tax refund. Going forward processes <br /> POWERED 11 <br /> Page 1 of 2 NATURE <br /> 111. <br /> Reliable Public <br /> Power Provider POWERED T O $ERVE <br /> 53 <br />