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4.3. ERMUSR 02-15-2011Elk 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 Troy Adams, P.E. - Director of Operations John Dietz, Chair Dazyl Thompson, Trustee Al Nadeau MEETING DATE: AGENDA ITEM NUMBER: Febru 15, 2011 4.3 SUBJECT: Midwest Munici al Transmission Grou and CAPX2020 Brookin s Pro~ect Update BACKGROUND: In May 2006, the Utilities Commission authorized joining Midwest Municipal Transmission Group (MMTG) to explore the potential to obtain ownership in the transmission system. Tn February 2007, ERMU entered into an agreement to participate through Central Minnesota Municipal Power Agency (CMMPA) in the CAPX2020 Brooking-Twin Cities Transmission Project. Through MMTG, ERMU is currently receiving approximately $4,500 revenue as return on investment in existing ERMU substation equipment. DISCUSSION: Steve Thompson -CEO and Larry Blaine -CFO of CMMPA have provided Staff with a project update and options, financial implications for ERMU, and project timeline and critical dates. On February 10"', CMMPA held a conference call with Utilities and City staff to analysis the financials of the project and the proposed investment options. Staff will provide an update for the Commission at the time of the meeting. ACTION REQUESTED: No action required at this time.