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7.3. SR 01-06-1997ELK RIVER MUNICIPAL UTILITIES 322 King Avenue Elk River, Minnesota 55330 Phone (612) 441-2020 Fax (612) 441-8099 January 2, 1997 ITEM 7.3. To: Elk River City Council Hank Duitsman - Mayor John Dietz Daryl Thompson Larry Farber Roger Holmgren From: Bryan C. Adams - General Manager Elk River Municipal Utilities Subject: Annual Report I would like to thank you for the opportunity of presenting an Annual Report reflecting Elk River Municipal Utilities past accomplishments and future goals. Enclosed for your review are overheads that will be utilized in this presentation. I will provide comments and more detailed information at the council meeting. What is driving Elk River Municipal Utilities at this time is the tremendous growth Elk River is now experiencing and electric deregulation. Our challenge is to satisfy the physical requirement, human resource needs and meet the financial requirements necessary to provide reliable, quality, and cost effective electric and water utility services. If you have any questions about the enclosed information, do not hesitate to call. Sheet1 Elk River Municipal Utilities Organizational Chart IElectric Superintendent J Generation Distribution Substation Security Systems Electric & Water Customers Elk River Utility Commission' General Manager I Water Testing Water Superintendent J I I I Elec & Water Distribution Environmental Metering Compliance I Customer Service Administration Meter Reading Contracts and Special Vendors Safety Manager Dispatching Electdc Metering & Relays Meter Reading Computer Support Substation Maintenance Underground Construction Contractors Page 1 Sheet1 Elk' River Electric Demand Load 25 20 '"' 15 E 10 5 0 Time I Series 1 I I Series2 Sheet1 Annual Electric Demand Load 25000 20000 15000 ~= 10000 5OOO Month E~ ~ E E ~. 0 > u (/3 Z Q b,~eetl Electrical Demand Trends 35000 30000 ~ 25000 'o 20000 E 15000 c~ 10000 5OOO ! Years 0 0 Series 1 ] Sh~tl 300O 2500 2000 1500 1000 5OO Maximum Daily Water Demand Month Gal Pumped] Sheet'l Water Use Demand Trends 6O0O 5OOO 4OOO 3000 2000 1000 0 0') 0'~ O~ O~ O~ 0'~ O~ O~ O1 0'> O~ O1 O~ O~ Year 0 0 0 0 Gal Pumped Gal Pumped 0 0 \%%\- AEC -I .Iii!i'Ii!!i-ii' Demarcation Line Symbol Elk]Y~iver AEC 3flRMU Demarcation Line Map ~AEC Average US El'ectric Prices Seattle Ci~ Ught 3.59 cents 1993 Data Idaho Power 3.78 cents NSP 6.58 cents PSI Energy 4.5 cents Pacific Gas & Elec 10 61 cents Smithern California Edison 10 18 cents Toledo Edison 8 73 cents Commonwealth Elect Co 12.35 cents island Lighting 147 cents Kentucky Util 440 cents 8outhwe~t Pub Serv 4.80 cents Mississippi Power 8.00 cents El Paso Electric 8.50 cents Over 10 Cents / kWh ......... 1 7 Io 9.99 Cenls / kWh 5 to 6.99 Cents / kWh Under 5 Cents I kWh State Averages are from Energy Information Administration 826 Forms and reflect an average rate for all retail ~lectrlc salee In the State. ; PRIORITIES Conduct a study to determine the need for rate adjustments in the water and electric utility. Resolve power supply arrangement with UPA/AEC or possibly other suppliers and determine future of 3000 Kw diesel generation. Computerize the utility's inventory and purchasing systems. Develop Utility policy and procedure manual. Develop a safety program. Develop a mapping system to record the overhead and underground facilities of the electric utility. 7) Develop long range plans to address the needs of both water and electric utility in anticipation of future growth and development. 8) Work closely with the City Administrator in developing marketing strategies and information for economic development. 9) Explore joint powers options. Work with Anoka Electric Cooperative on a transfer of territories and in planning for long range improvements. 10) Develop and implement a regular maintenance program for the water utility. 11) Address space needs for utility operations. 12) Clarify reporting and develop job descriptions. Establish a performance evaluation system. 13) Evaluate the benefits of initiating an apprenticeship program. 14) In conjunction with the City's Civil Defense Director (Fire Chief), develop an Emergency Preparedness Program. 15) Phone system between the power plant and office so calls can be transferred. 16) New truck for Scott Nielsen. 17) Update water maps. 18) Conservation Programs for the EleCtric and Water Departments.