4.1. ERMUSR 08-10-2010Elk River
Municipal Utilities
13069 Orono Parkway • EO. Box 430
Elk River, MN 55330-0430
UTILITIES COMMISSION MEETING
Phone: 763.441.2020
Fax: 763.441.8099
TO: FROM:
Elk River Municipal Utilities Commission Troy Adams, P.E. -Director of Operations
John Dietz, Chair
Jerry Gumphrey, Vice Chair
D l Thom son, Trustee
MEETING DATE: AGENDA ITEM NUMBER:
Au ust 10, 2010 4.1
SUBJECT:
Power Su ly O tions /Resource Plannin Update
BACKGROUND:
In September 2008, Connexus Energy terminated the 10-year rolling "all requirements" power contract
with Elk River Municipal Utilities. In April 2010, the Utilities Commission authorized entering into
"Phase l" of a resource planning study with a coalition which includes Central Minnesota Municipal
Power Agency (CMMPA) as a participant.
CMMPA gave a presentation of sensitivity assessment and portfolio options to the coalition participants
on August 4~' in Elk River. This is paR of Phase 1 of the resource planning study. This presentation was
attended by Jerry Gumphrey -Commission Vice Chair and Troy Adams -Director of Operations. Some
additional sensitivity analysis will be done specific for each participant. A presentation of Phase 1 results
for Elk River is tentatively scheduled to be ready by the September Commission meeting.
A confidentiality agreement between Connexus Energy and Elk River Municipal Utilities specific to
power supply negotiations has been signed by ERMU. In conjunction with these power supply
negotiations, Connexus has invited ERMU representatives to take a tour of Great River Energy's Coal
Creek Station. This power plant and adjacent lignite coal mine is located in North Dakota approximately
50 miles north of Bismarck. This tour is scheduled for September l~`.
ACTION REQUESTED:
No action required.