6.1. ERMUSR 09-15-2010
Elk fiver ==
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L3069 Orono Parkway ~ Y.O. Box 43C
Etk River, MN 55330-0430
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Phone: 763.441.2020
Fax: 763.441.8099
U'I'ILI'1'IES COMMISSION METING
TO:
EII< River Municipal Utilities Commission
John Dietz, Chair
Jerry Gumphrey, Vice Chair
Daryl Thompson, Trustee
MEETING DATE:
September 1 ~, 2010
SUBJECT:
Staff Updates - Director of Operations
_ _ . _ _ -
FROM:
Troy Adams, P.E. - Director of Operations
I
AGENDA ITEM NUMBER:
6.1
-~
DISCUSSION:
Central Minnesota Municipal Utilities Association (CMMPA) will be holding their 2010 Agency Meeting
and Dinner to be held in Mankato. As in the past this annual event is held on two different days to make
it easier for people to attend. This year the event will be on October 19'x' and 2 P' from Spm to 9pm. This
event invitation is extended to EEZIVIU management and commissioners. See the attached invitation and
registration form.
The United States Environmental Protection Agency (EPA) has recently issued new regulations regarding
Reciprocating Internal Combustion Engines (RICE). These new EPA RICE regulations will affect the
four ERMU diesel engines located at our Power Plant Under these regulations, these engines will require
emission reu-ofits in order to continue being contracted to Great River Energy for their capacity. The
Initial Notification for the Nation Emission Standards for Hazardous Air Pollutants for Stationary
Reciprocating Internal Combustion Engines has been filed. Further internal analysis will be needed to
determine whether it would be cost effective to retrofit all four engines. A courtesy notification has been
sent to our customers participating in the ERMU's Dispersed Generation Program. Attached for your
reference is a letter from the American Public Power Association (APPA) addressing this regulation.
As always, this year's annual ivlinnesota Municipal Utilities (MMUA) Summer Meeting offered timely
industry updates. There was an EPA update from APPA that covered the RICE regulations as well as the
greenhouse gas regulations Chat are being enforce under the Clean Air Act. There was also a Minnesota
focus update on RICE from MMUA. Other topics of interest included the SOOMHz statewide radio
project, solar and battery storage technology, both State and Federal legislative and political environment
updates, network security, and a League of MN Cities State budget problems.
On September I'', staff took a tour of Great River Energys Coal Creek Station, DC Convertor Station,
and the Falkirk Mine with representatives of Great River Energy and Connexus. This power plant and
adjacent lignite coal mine is located in North Dakota approximately 50 miles north of Bismarck.
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459 South C, rove Street Blue Earth. iNinnespta 560'13 507-5264193
i'0 Troy darns ~ Eii: Riven
FROf~If: Steve Thompson
TQT,aL lYUMBER C31' YAUES: Cover + 2 paw
attached you ti<ili find an el~ctrunic copy of tine iaaa~itation to tine Ctd5R+1_f'A. ?C31G Ragioul!
Member Meeting and Dinner.
\~,?ithin the next couple of day+s yore ~wvilY receive au enveita%re that hill contain muheple
copies of this im°itation along cd°ith Che. rrtum reg'isu;atim~ foam for each of ~;8k enwer's
utility management and eornmisionees.
Cif-Ei~Ii A is ~°:ort<ing hard U~ helz:, zi.~s:>ciat:; ix.~anbea' c;ei~as It4:e ;~~crty;s succeed itt #t~e
rapidly d;anging and chalie.ngiaag a~lr;r'rictfp anarket. Ttaes issues ~nczeasitagl}' canaaot be
considered a spectator' sport. On brlaalf c,i~ yraur ,~~~eney', I strougty cnctmrtn,.,e vuu aced
other key aepresentatives of ;your f`i2y ril attend and actively paitiScipate Sn thEs
1-at 01na8tiyg and jntp(yl~;a-T ~VCRt.
It y{>u have a;a}~ yuesticin~,;aiease cto niai hesitate #o jive aa;e a+;al1.
TharJc you,
~ _ c-,-.
~ ~ ~'
Steve Tiaomtason
CEsO. CMMP'~
CENTIZA.[, MINNESOTA MUNICIPAL POWER AGENCY
2010 AGENCY MEETING AND DINNER
October 19th or 21st, 2010
in Mankato, Minnesota at the City Center Hotel
5:00 - 9:00 PM
(Dinner served at 5:00 PM)
THE CMMPA STAFF WOULD LIKE TO EXTEND AN INCITATION TO
ELK RIVER MUNICIPAL UTILITIES'
MANAGEMENT AND COMMISSIONERS
OF OUR CMMPA ASSOCIATE MEMBER
RSVP By October 13, 2010
This meeting has been designed to bring
together your city/utility colleagues and
leaders for an excellent learning opportunity
to deal with the challenges of working in a
rapidly changing energy environment.
You, along with your agency CMMPA, have
been charged with taking important steps
towards meeting the future and managing it
effectively.
Key meeting topics:
• Industry Trends
• Minnesota Compliance
• Current/Future Power Supply
• Transmission
• CMMPA Outlook
Sneakers
CMMPA STAFF
Steve Thompson, CEO
Larry Blaine, CFO
Lon Frisk-Thompson, Member Services
Shankar Karki, Senior Engineer
Kyle Haemig, Resource Planner
Loren Schumacher, Energy Conservation
Julie Ambach, Energy Conservation
Chad Hanson, Scheduler Supervisor
Andrew Ristau, Scheduler
Ben Nelson, Scheduler
Register Now!
(see attached)
CENTRAL MINNESOTA MUNICIPAL POWER AGENCY
2010 MEMBER MEETING AND DINNER -REGISTRATION FORM
October 19, 20L0 oa October 21, 20L0
City Center Hotel
(formerly Holiday Inn)
Mankato, Minnesota
5:00 - 9:00 PM
(Dinner served at 5:00 PM)
** Registration will be available until October 13, 2010 at 5:00 p.m.
Associate Member:
Name:
Position:
Please choose one of the two meeting nights: Please choose one of the three available entrees:
CHOICE OF NIGHTS CHOICE OF ENTREE
Tuesday
New York Strip Steak
October 19,2010
Fresh Atlantic Salmon
~
Thursday ~ Pork Tenderloin Medallions
October 21, 2010
Return registration form by Wednesday, October 13, 2010:
BY MAIL: CMMPA
459 South Grove Street
Blue Earth, MN 56013
BY FAX: 507-526-2527
BY EMAIL: colleenk(a~cmmoa.oro
American
Public Power
Association
A~~-~1'
August 20, 2010
Dear Affected APPA Member:
tab Cmneclicul Avenue, NW
Suite 1200
Washington, OG 200045715
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www.P,PPMeLOrg
I am writing to update you about a recent rule issued by the U.S. Environmental Protection Agency (EPA)
regazding Reciprocating Internal Combustion Engines (or RICE) units. As I believe you are aware, many
public power utilities, particulazly in the Mid-west and Plains states, own and/or operate these diesel-fired
units for back up, emergency or peak shaving operations. The final RICE rule was published by EPA on
March 3, 2010, and based on feedback from many APPA members, it appeazs that the RICE rule impacts
perhaps hundreds of very small units ranging between 500 horsepower to 3 MW. Many APPA members
owning or operating these units have expressed strong concerns about the costs of retrofitting or replacing
these units to comply with [he new emissions standards set in the rule as well as associated adverse
impacts on power supply and system operations.
The final RICE rule does allow these units to be run for emergency purposes without retrofit or
replacement. However, some public power utilities may use the term "emergency" in a way that does not
conform with EPA's definition. For example, EPA does not agree that voltage support constitutes
emergency. Thus, we encourage you to review the EPA's definitions carefully. Emergency generation
units must comply with far less stringent work practice standards instead of installing pollution control
technology and this is a far less costly means of compliance. However, the definition of "emergency
stationary RICE" states that RICE "used for peak shaving are not considered emergency stationary"
engines and that RICE "used to supply power to an electric grid or that supply non-emergency power as
part of a financial arrangement with another entity are (generally] not considered to be emergency
engines."
In addition, there are limited exceptions to the use of RICE units for revenue-generating purposes under
the new RICE rule. Emergency RICE engines may generate revenue up to 15 hours per year when a
regional transmission authority determines the emergency RICE are needed to prevent a potential
electrical blackout, maintain system voltage, or similar situation. Please note that initial notifications
must be filed with the apRropriate permitting authority by August 3l. 2010. Initial notification
requirements apply if your utility will be covered under this new RICE rule. APPA has previously
provided you a copy of the initial notification form for you to submit on behalf of your unit if you intend
to run your units for non-emergency use, including peak shaving purposes. That form can also be
accessed here: htto~/lwww epa goy/ttn/a[w/rice/rice initial notify doc
Further, we understand that some APPA members want to synchronize the requirements of the RICE rule
with certain contracts with regional transmission organizations that provide power from RICE for peak
shaving. The new RICE rule sets National Environmental Standards for Hazardous Air Pollutants that
will require retrofit controls for most engines above 300 horsepower (HP).
Also, your utility should evaluate whether any engines fall under the 2006 NSPS (New Source
Performance Standazds) that placed very strict limitations on what EPA considers to be an emergency
compression ignition RICE. 71 Fed. Reg. 39,154-185. The 2006 NSPS affect new or reconstructed RICE
as of the date of the proposed rule, which was July 11, 2005. ff you are affected by the NSPS rule
Affected APPA Member
August 20, 2010
Page 2
(separate from the RICE NESFIAP rule), compression ignition RICE that are "used to supply power to an
electric grid or that supply power as part of a financial arrangement with another entity are not considered
to be emergency engines." 7l Fed. Reg. 39,180, col. 1 (definition of emergency stationary internal
combustion engine). Only you would know whether you fall under the 2006 NSPS rule. We encoumge
you to ensure that you are in compliance with the 2006 NSPS, including seeking legal advice, if
necessary.
Because of the pervasive impacts of the new RICE rule on public power utilities and the concern it has
raised, APPA intends to work with our members to better understand the impacts of the rule, facilitate
information sharing among APPA and its members on the issue, and examine potential opportunities for
additional flexibility at the state or federal level. APPA is convening a group of experts on the RICE
issues within our membership to look at any further actions that might be undertaken by APPA. Tn order
to assist you in the interim, we have created amember-only website that should assist you in conveniently
finding the EPA materials that you will need as you assess the regulatory impact in your community. The
items that are posted on our website include:
• Final RICE Engine Compliance Extension Memo from outside counsel and copies of the form for
submittal to the EPA by August 3l, 2010. The memo is provided for your initial review. We
encourage you to seek your own counsel's advice as to any local circumstances on state
permitting issues or if your utility cannot yet know whether you will be covered by August 31,
2010. This memo is available at:
ht[o•//www.appanet.ore/files/RFP/Comp) ianceExtensionsWAttachment%2DFINAL.odf
• EPA's Final Decision to Continue Applying the Agency's Existing Interpretation of a Regulation
That Determines the Scope of Pollutants Subject to the Federal Prevention of Significant
Deterioration (PSD) Program under the Clean Air Act (03/29/2010)
• uestions Parts L and 2 of the EGU MACT ICR (02/25/10)
• Slides from the Tune 2010 APPA webinar on the RICE rule, available at the following link:
http•//www ap~anet org/files/PowerPoint/RICEPresentationAPPA ppt
• EPA's proposed Spark Ignition Proposed Rule, available on EPA's webpage a[:
htto~//www epa gov/ttn/oarpe/t3/fr notices/rice neshap fN81010 odf. Please see pages 107-109
for EPA's reference to emergency usage and comments on emergency generation, limited use,
and other special circumstances. The deadline for comments is 60 days after the proposed rule is
published in the Federal Register (it has not been published as of today) which will likely be mid-
October and APPA encourages you to file comments on your own utility's behalf. We also are
soliciting comments that could address APPA's broader membership. Please contact J.P.
Blackford to submit ideas for filing comments by September 20. J.P. may be contacted at
jpblackford @appanet.org
In addition, there may be state regulatory issues that APPA has not tracked including whether or not your
state requires operating permits or General permits for operating these units. We encourage you to look at
the U. S. EPA materials provided to you on our website
thttp://www.appanet.or utility/index.cfm?ItemNumber=286931 and to also check into any applicability
under your state law.
We know that the coming decade will continue to put considerable pressure on all fossil fuel units-
whether they are for baseload generation or use such as these RICE units. The EPA is attempting to
regulate all sources of pollution (mostly SO2, NOx, mercury, COZ and carbon monoxide as in this RICE
rule). Their regulations promise to continue to require lower levels of allowable emissions through the
placement of control technologies. While the news in this rulemaking may not please many APPA
Affected APPA Member
August 20, 2010
Page 3
member utilities, it is indicative of the larger pressures that the entire electric utility sector is under in
order to reduce all air pollution from fossil fired sources. The Clean Air Act has a tremendous capacity to
reach down into ever smaller generation sizes and ancillary units such as RICE engines. APPA will
continue to work with its members and federal policymakers on these important issues.
lastly, I want to encourage you to participate in the APPA environmental committee that tracks these
environmental regulations at the U. S. EPA. While we cannot always tell you the precise regulatory
impact a[ your facilities, we track major EPA regulations and provide weekly updates. More than 800
people from APPA member utilities are on that group. In addition, they are able to participate in
webinars or workshops that explain U. S. EPA regulations in a timely and clear way. For information on
joining this group, at no charge, please contact Theresa Pugh at touch@appane[.org.
Please do not hesitate to contact me if you have any additional questions or concerns.
Sincerely,/
"+'t1l
Mark Crisson
President & CEO
completely, or never getting through at all. We received a number of emails and a number of
phone calls throughout the remainder of the day from customers voicing dissatisfaction in trying
to contact us during the outage. As a staff, we discussed some things we might be able to do
differently in the future, such as having apre-recorded message ready to place on the phones in
the event of such an outage again, and exploring the option of "unrolling the phones" without the
assistance of Bob Pearson (he, of course, is onboard with trying to figure this out as well.)
One other thing that came out of this outage experience is GRE offered to look into ERMU
utilizing the system their member utilities use for receiving customer calls to report the outage
and respond back to the customers that they are aware of an outage. GRE's system is automated
and once they recognize there is an outage they convert the system over to the automated service.
GRE is working on a proposal for us to determine what the cost would be. There are some
additional technical items to work through because the database that drives the automated system
is interactive. It helps identify who is calling and where they are calling from, as well as let the
customer know they are aware of an outage. There will also be an increase in our monthly fee
for this dispatch service. As I have more details on this, I will bring them forward.
Some really good news is that I have received our medical insurance renewal rate for 201 I and it
is a zero increase. Our 201 I rates will be the exact same rates we currently have. If you recall,
our dental rates are locked in until January 1, 2012 and so the 201 1 insurances wIll all be the
same as 2010.
Per commission request, I looked into a check reader/processor for the front counter. Our bank
could offer a 1.5% transaction fee, plus $.25 per transaction, with a minimum charge of $40 per
month, and an additional monthly fee of $15. The check reader does not have to be purchased
separately, it is provided for using their service. In using this equipment, the funds would be
verified (although not 100% guaranteed) as the check is processed at the front counter. The
volume of checks we process at the front counter is an average of 10 per day, with a max of 20.
Using an average amount of $175, an estimated cost would be X590 per month for this service.
Staff estimates they collectively spend an average of l 5 to 30 minutes processing an NSF. If it
were assumed that al] NSFs come from the counter traffic, and currently we have an average of
approximately 24 NSFs in a given month (varying from I S to 33 per month) that cost is
approximately $276 per month. While it is not known definitely, it is suspected that the majority
of NSFs are not from the counter traffic, but the mail in payments.
Elk River;
Municipal U
Memorandum
To: Elk River Utilities Commission
John Diets
~~
From: David Berg
Date: 9/14/2010
Subject: Barr Memorandum -Update
After Barr engineering evaluated irrigation well drilling, they swrunarized that the DNR
has wntrol over water consumption limits. Since there have been pemuts in place, then there is not
much anyone can do to hinder irrigation wells.
Elk River:; .
Municipal Utilities
Memorandum
To: Elk River Utilities Commission
John Dietz
~Y~P~Y
DarylThompson
From: David Berg
Date: 9/14/2010
Subject: Alternatives for Seasonal Water Meters
As we always stress trying to help customers conserve on water use and save money on
their utilities, we would like to work with our top irrigation users to ensure savings. A plan to work
one on one with top users to try to cut water use and provide them with the knowledge to imgate
only as needed would be our primary focus. With the implementation of the newest SMART
technology and some basic watering tips, we have seen drastic changes in water use across the
community. Instead of changing our tiered rates, which have been put in place to promote water
conservation, it seems as though education, training and SMART equipment would best suit the
efforts of saving both money and water for the top water consumers. The change of an irrigation
rate may only increase water consumption and in tum give us financial pressure as we push to save
water, which then limits revenue as well. A conservation conscious budget would be beneficial to
provide fiutlrer rebates or incentives to save water.
Elk River~,Y
Municipal Utiliries
Memorandum
To: Elk River Utilities Commission
Jahn Dien
Je-ryC~phrey
DarylThompeon
From: David Berg
Date: 9/14/2010
Subject: Railroad Water main -Update
The BNSF Railway water main repair on Jackson Street will commence in mid September
and will likely last a couple of weeks. Once the in.~ prance check clears, then the pemuts will be
pulled and conshvction will begin.
Elk River ---~
Municipal Utilities
13069 Orono Parkway • P.O. 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 Mark Fuchs
John Dietz, Chair Line Superintendent
Jeny Gumphrey, Vice Chair
D 1 Thom son, Trustee
MEETING DATE: AGENDA ITEM NUMBER:
Se tember 15, 2010 6.1
SUBJECT:
Staff U dates
Discussion:
• On Sunday August 29th a squirrel got into a three phase riser pole by Fairview Clinic on
Main St. causing an azc flash. There are multi-feeders on this section of the line. The
fault current was so high it caused the wires to hit each other and caused the high side
breaker at the substation to open.
• Installed a single phase primary loop between 300 3rd and 340 3rd Street apartments.
• Installed three security lights at Hillside Park on County Road 12. Jeff Beahen had
requested them because oFproblems they were having out there.
• Continued working on 1st and 2nd Street rebuild.
• Continued working on Area 22 rebuild.
• Continue working on Engers Addition rebuild.
• Had one new application For electric service.
• We received the new Vermeer Vactron.
• We have been trying out new track plow machines from Ditch Witch, Vermeer and
Astec. Restoration time is much less with the track plow machine (see attached photos).
• We sent two linemen down to Marshall for MMUA substation school.
• I went to the MMUA annual summer meeting with Troy in Alexandria. We heazd about
the implications of new environmental regulations that may affect our power plant and
how these regulations will have to be met by 2013. Had a session on 800 MHZ two way
radios and found ways to use our existing system with the new one. Saw some of the new
technology for renewable photovoltaic energy and storage. Had a legislation update on
which laws have passed and which ones have not. Also discussed which direction the
electrical industry seems to be headed in. I thought it was a very good meeting.
Elk River
Municipal Utilities
13069 Orono Parkway • P.O. 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 Wade Lovelette. -Superintendent of Technical
John Dietz, Chair Services
Jerry Gumphrey, Vice Chair
Dar 1 Thom son, Trustee
MEETING DATE: AGENDA ITEM NUMBER:
Se tember 15, 2010 6.1
SUBJECT:
Staff Updates - Su erintendent of Technical Services
DISCUSSION:
The following is a summary of projects and/or updates over the past several weeks:
This month the Locating Department had a total of two hundred twenty-four locate tickets. Eight
of those tickets were "appointments required", fifreen were "updated" tickets and four were
"emergency" locates.
The Metering Department continues with weekly and monthly substation checks, and doing the
monthly power bill. The meter change-out program is still continuing as time permits.
Adam and I attended the Upper Midwest Metering Association workshop in Duluth this month.
Much was learned as you can see on the education forms in the back of this book.
Michael, Adam, Dick and Jeff attended the week long training for Home Energy Auditing. This
training is to educate the customers as to how to save on their energy bills.
Also last month, Adam and Michael attended the training to renew their Power Limited licenses.
The Security Systems Department had a total of seventy-seven phone contacts, fourteen personal
visits, fourteen systems quoted, twelve sales made, ten installs completed and twenty-one service
calls for the month of August.
Power Plant staff has performed the monthly run of the generators. We received the repaired
cylinder head from Wheeler Enterprises and Steve re-installed it and engine #1 is back in service.
ELK RIVER MUNICIPAL UTILITIES EDUCATION/ SEMINAR REPORT
DATE 8/8/2010
EMPLOYEE NAME Wade Lovelette
TITLE OF EDUCATION/SEMINAR Upper Midwest Metering Association (UMMA)
DATES ATTENDED 8/4/10 thru 8/6/10
LOCATION Duluth, MN
WHY DID EMPLOYEE CHOOSE TO ATTEND? To learn more about metering issues, the
different kinds of meters there are, metering safety and arc flash.
WHAT INFORMATION WAS LEARNED BY ATTENDING? Who can legally cut our meter
seals? Requiring customers to sign a 3 year contract. Green Energv clause: we have to report how
many kw's the customer's solar or wind produces. We learned about different types of smart meters.
We also learned about the electric vehicle charging station. Also, how harmonics will "kill" a solid
state single phase meter. The poly-phase meters have built in harmonic protection.
WAS INFORMATION CONVEYED TO SUPERVISOR AND CO-WORKERS AND TO WHO?
Yes. To other co-workers.
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ELK RYVER AgYPATYf°YDB4 PPTY4 YTYFS ED AT Tl1PP/ SEMY~TAR R P®RT
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DATES ATTENDED /J 7 ~ " ~j ~ -
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SIGNATURE