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~i <br />Elk River -~ <br />Municipal Utilities <br />13069 Orono Parkway • P.O. Box 430 <br />Elk River, MN 55330-0430 <br />November 5, 2008 <br />To: Elk River Municipal Utilities Commission <br />Jerry Takle <br />John Dietz <br />Jerry Gumphrey <br />From: Troy Adams <br />Subject: All Requirements Contract <br />Phone: 763.441.2020 <br />Fax: 763.441.8099 <br />In September of 2008, Connexus Energy executed the termination clause in their 10 year rolling <br />all requirements power contract with Elk River Municipal Utilities. Although this does not <br />require immediate attention, the topic does warrant discussion. <br />After ERMU received the termination notice, Staff had begun to research ERMU's options. At <br />that time, R. W. Beck had been contacted to assist in the process. A meeting had been scheduled <br />between R. W. Beck, CMMPA, and ERMU staff to discuss the logistics of participating in the <br />Big Stone 2 power plant project. Due to unrelated complications, this meeting had subsequently <br />been cancelled. There is still interest by CMMPA to meet with ERMU (see attached email). <br />Staff will reschedule this meeting for the near future. <br />On November 3`d, Staff met with John Gasal of Connexus Energy to review all current/existing <br />contracts with ERML? including the all requirements power contract. The meeting served as <br />review of the contracts as well as an explanation of their history and the relationship between <br />Connexus Energy and ERMU. A follow-up meeting with John Gasal and Mike Rajala of <br />Connexus has tentatively been scheduled to take place later this November. <br />