2.3. ERMUSR 04-09-2019 - 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: April 9, 2019 2.3 SUBJECT: Capital Asset Sales Agreement with Great River Energy ACTION REQUESTED: Receive and File the Capital Asset Sales Agreement with Great River Energy BACKGROUND: As part of the transition to Minnesota Municipal Power Association (MMPA), staff has worked with Great River Energy(GRE) to identify and purchase metering and other equipment located at the 8 substations that supply the ERMU distribution system. DISCUSSION: GRE no longer needs the metering or the structural facilities since we have transitioned to MMPA. GRE will continue to own and operate much of the communication equipment at the substations to allow for the continued use of the Supervisory Control and Data Acquisition (SCADA) system services which ERMU contracts with GRE to provide. The equipment being purchased is primarily revenue class meters, metering equipment, and one small structure that houses metering and communications equipment. The purchase of the metering assets will allow ERMU to operate independent metering that will provide a secondary data source for verifying the monthly wholesale power bill. In addition ERMU will receive real time access to substation data utilizing the SCADA system.The additional metering will also provide for increased reliability and accuracy in billing for the rare occasions when ERMU is asked to provide, or is need of, electricity in emergencies. FINANCIAL IMPACT: The funds for this capital asset purchase are covered in the Transformers and Meters Capital Budget.The total purchase price for the metering assets and structure is$64,035.53. ATTACHMENTS: • Capital Asset Sales Agreement with Great River Energy Page 1 of 1 45