6.2 ERMUSR 02-13-2018 - Laserfiche WebLink

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Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Tom Sagstetter—Conservation and Key Accounts Manager MEETING DATE: AGENDA ITEM NUMBER: February 13, 2018 6.2 SUBJECT: Landfill Gas Plant to Electric Generation Facility Performance for 2017 ACTION REQUESTED: None BACKGROUND: Consistent with contractual provisions, each year ERMU can provide bonus payments to Sherburne County and Waste Management/Elk River Landfill provided the financial means and plant capacity factors are met. DISCUSSION: For the calendar year of 2017 the landfill gas plant had a capacity factor of 93.3% and generated approximately 25 million kWh. The production was steady and the overall costs of the plant were manageable. The production level fell below the 95%capacity factor threshold;therefore no bonus payment will be made to Waste Management. The overall operating costs for the landfill gas plant acceptable for 2017 with no extra ordinary expenses or failures. Also, Waste Management was very efficient in the routine maintenance for 2017 and kept the operation and maintenance costs very reasonable. Based on the 2017 overall performance of the landfill gas plant project Sherburne County will receive a payment of $25,000. The landfill gas plant 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%of ERMU total sales for 2017. 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. FINANCIAL IMPACT: As outlined above. ATTACHMENTS: • Letter to Waste Management—LFG to Electric Generation Facility Performance for 2017 • Letter to Sherburne County—LFG to Electric Generation Facility Performance for 2017 Page 1 of 1 162