4.2. ERMUSR 10-12-2010Elk River
Municipal Utilities
13069 Orono Parkway • P.O. Box 430
Elk River, MN 55330-0430
UTILITIES COMMISSION MEETING
Phone: 763.44 L2020
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
Dar 1 Thom son, Trustee
MEETING DATE: AGENDA ITEM NUMBER:
October 12, 2010 4.~
SUBJECT:
Power Su ly Options /Resource Plannin Update
BACKGROUND:
In September 2008, Connexus Energy terminated the 10-year rolling "all requirements" power contract
with Elk River Municipal Uti]ities. In April 2010, the Utilities Commission authorized entering into
`'Phase I" of a resource planning study with a coalition which includes Central Minnesota Municipal
Power Agency (CMMPA) as a participant. [n September 2010, the Utilities Commission authorized
entering into "Phase 2" of a resource planning study which includes the release of a Request For Proposal.
DISCUSSION:
On September 28, one of the participants announced that they would not be participating in Phase 2 of the
resource planning study. A reallocation of costs was done and the approval cost for Elk River Municipal
Utilities increases from $19,444.44 to $25,000.00. The costs for Elk River Municipal Utilities that would
be approved at a future date for the Phase 2b increase from $8,334.00 to $10,714.00. This change has
delayed the process because many of the participants needed to obtain approval from their governing
bodies. Elk River Municipal Utilities' staff has informed the Resource Planning Coalition that they will
participate in Phase 2 at the $25,000 contingent upon all other remaining participants also agrees to
participate in Phase 2.
ACTION REQUESTED:
No action required at this time.