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Elk River <br /> Municipal Utilities UTILITIES COMMISSION MEETING <br /> TO: FROM: <br /> ERMU Commission Tom Sagstetter—Conservation & Key Accounts Manager <br /> MEETING DATE: AGENDA ITEM NUMBER: <br /> February 12, 2019 5.5 <br /> SUBJECT: <br /> Landfill Gas Plant Update <br /> ACTION REQUESTED: <br /> None <br /> BACKGROUND: <br /> Each year Elk River Municipal Utilities (ERMU) can provide bonus payments to Sherburne <br /> County and Waste Management/Elk River Landfill provided the financial means and plant <br /> capacity factors are met. <br /> DISCUSSION: <br /> For the calendar year of 2018 the landfill gas plant had a capacity factor of 95.19%and <br /> generated approximately 25,350,000 kWh. As a result of the production level exceeding 95%, <br /> Waste Management will receive a payment of$1,043.99 for 2018 operations.The production <br /> was steady and the overall costs were reasonable considering we replaced the main bearings in <br /> three engines. <br /> The overall operating costs for the landfill gas plant were acceptable for 2018 with no <br /> extraordinary expenses or failures. Based on the 2018 overall performance of the landfill gas <br /> plant project, Sherburne County will receive a payment of$25,000. <br /> The landfill gas plant produced over 25 million kWh which is enough electricity to supply 2,430 <br /> average residential customers in Elk River for one year.The landfill gas to electric plant <br /> generated the equivalent of 7.6%of ERMU total sales for 2018. <br /> The payments are not guaranteed and can change or be eliminated based on the variability of <br /> labor, materials, unexpected or increased maintenance costs, or loss of production for various <br /> reasons. <br /> FINANCIAL IMPACT: <br /> As mentioned above. <br /> ATTACHMENTS: <br /> • Letter to Waste Management—LFG to Electric Generation Facility Performance for 2018 <br /> • Letter to Sherburne County—LFG to Electric Generation Facility Performance for 2018 <br /> Page 1 of 1 <br /> 69 <br />