5.2 ERMUSR 03-13-2017 - Laserfiche WebLink

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Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Tom Sagstetter—Conservation and Key Accounts John Dietz—Chair Manager Al Nadeau—Vice Chair Daryl Thompson—Trustee MEETING DATE: AGENDA ITEM NUMBER: March 13, 2017 5.2 SUBJECT: Landfill Gas Plant to Electric Generation Facility Performance for 2016 BACKGROUND: Each year ERMU can provide bonus payments to Sherburne County and the Waste Management/Elk River Landfill provided the financial means and plant capacity factors are met. DISCUSSION: For the calendar year of 2016 the landfill gas plant had a capacity factor of 93.68%and generated approximately 25 million kWh. 2016 was a challenging year and the production level fell below the 95%capacity factor threshold; therefore no bonus payment was made to Waste Management or Sherburne County. Some of the challenges include the catastrophic failure of an engine in March, and a change in the regular scheduled maintenance protocol. As a result of the engine failure energy production decreased. Despite the challenges the plant still produced approximately 25 million kWh which is enough electricity to supply 2,850 average residential customers in Elk River for one year. The landfill gas to electric plant generated the equivalent of 8.5% of ERMU total sales for 2016. The bonus payments are not guaranteed and can change or be eliminated based on the variability of labor, material, unexpected or increased maintenance costs, or loss of production for various reasons. ATTACHMENTS: • Letter to Waste Management—LFG to Electric Generation Facility Performance for 2016 • Letter to Sherburne County—LFG to Electric Generation Facility Performance for 2016 Po ■ EREU BY I, Page 1 of 1 NATURE Reliable Public Power Provider POWERED To SERVE 88