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6.1. ERMUSR 02-15-2011Elk River ^~ Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk River, MN 5 5 3 30-0430 UTILITIES COMMISSION MEETING Phone: 763.441.2020 Fze: 763.441.809) TO: FROM: Elk River Municipal Utilities Commission Troy Adams, P.E. -Director of Operations John Dietz, Chair Daryl Thompson, Trustee Al Nadeau MEETING DATE: AGENDA ITEM NUMBER: Febru I5, 2011 6.1 SUBJECT: Staff U dates - Director of Operations DISCUSSION: Our new Maintenance Person started on February 15`. Staff is reviewing the applications submitted for the vacant Water Operator position. Interview will be scheduled soon. The week of February 28th, Wade Lovelette and I will be attending the American Public Power Association (APPA) Legislative Rally in Washington, D.C. The Minnesota Municipal Utilities Association (MMUA) Legislative Conference St. Paul will be March 30`" -April ls`. We are budgeted for one Commissioner and one Staff member to attend. The MMUA Conference Brochure is attached. Enclosed for your reading are the current issues of the MMUA Resource, MMUA 2010 Year in Review, and the MMUA Capitol Tattler. Minnesota Municipal Utilities Association 3025 Harbor Lane North, Suite 400 Plymouth, MN 55447 www.mmua orq To register contact Rita Kelly Direct: 763-746-0707 Fax: 763-551-0459 E-mail: rkellv(o?mmua.oro Minnesota Municipal Utilities Association March 30 -April 1.2011 Crowne Plaza Hotel a SUIteS (formerly Holiday Inn Select) Bloomington, Minnesota Our day on the Hill is the centerpiece of the program, but there is rnuch more to take in. We have a full slate of informative speakers to bring you up-to-date on our industry and where it's headed. Please take time to review all of the information provided. It contains every- thingyou need to register with MMUA and the Crowne Plaza Hotel. Note that this is the same hotel location as last year. The Note! will be changing names before we arrive. MMUA's Winter Legislative Conference is our primary opportunity to make our concerns known to government leaders. With the state's budget in crisis and new majorities in both houses, making a good showing has never been more important. Remember, numbers count and we need your help. A strong turn- outwill ensure that our message is heard. Tentative Program WEDNESDAY, MARCH 30 Track 1 (cont.) 9:00 MMUA Board of Directors Meeting 4:15-5:00 to be determined 12:00-5:00 Registration Desk Open Track 2 1:00-1:45 Minnesota Energy Policy 1:30-2:15 A New, Cleaner Way to Use Coal Governor Mark Dayton (Invited) Bob Walker, PresidentfCEO Bixby Energy 1:45-2:30 Cost Allocation for New Transmission Ray Wahle, MRES 2:15-3:00 Energy Storage for Renewable Energy Integration 2:30-2:45 Refreshment Break Nancy Pellowski, Corp. Strategy & Planning Consultant, Xcel Energy 2:45-3:30 You Wouldn't Drive a Car Without a Dashboard...Would you? Key Performance Indicators for Municipal Utilities John Miner, Collaboration Unlimited 3:30-4:45 Legislative Briefing Dinner is on your own. THURSDAY, MARCH 31 6:30-8:00 Hosted Breakfast Buffet at Hotel 7:00-8:30 Shuttle Buses to Front Steps of Capitol Schedule: 7, 7:30, 8 & 8:30 7:00-11:30 Meet with Your Local Legislators 9:00-11:00 Visits with Legislative Leadership 11:00-12:45 Shuttle Buses return to Hotel Schedule: 11, 11:30, 12, 12:30 & 12:45 12:15-1:15 Hosted Luncheon Buffet at Hotel Afternoon will have two concurrent tracks o/programming. Track 1 1:30-2:15 Wastewater Treatment Facilities Construction Challenges Todd Wicklund, Brainerd Public Utilities 2:15-3:00 Lighting the Energy Revotution...with LEDs for Minnesota Municipalities Charles Szoradi, GREENandSAVE 3:00-3:30 Refreshment Break 3:30-4:15 Nashwauk-Essay Steel Minn. Project Bryan Adams, Nashwauk Public Utilities 3:00-3:30 Refreshment Break 3:30-4:15 A Tale of Two Cities; Hibbing & Virginia Biomass Terry Leoni, General Manager Laurentian Energy Authority 4:15-5:00 Warehouse Energy Conservation Systems Paul Wessel, Thermal Barrier Solutions Dinner is on your own. FRIDAY. APRIL 1 8:00-12:00 Registration Desk Open 8:00-9:30 Analyze and Improve: CIP Tracking 8 Reporting Tools Joe Plummer, Sr. Engineering Specialist MN Office of Energy Security Leo Steidel, CEO, Energy Platforms 9:30-10:00 1.5% Energy Efficiency Solutions Project Overview Jack Hogin Assoc. Director of Environmental Projects Minnesota Environmental Initiative 10:00-10:15 Refreshment Break 10:15-11:00 Water Sustainability Deborah Swackhamer, Ph.D. University of Minnesota (Invited) 11:00-11:30 Issues Roundup MMUA Staff 11:30-12:00 RaPly Recap MMUA Staff Registration Fee $225 on or before March 16, 2011 $250 on or after March 17, 2011 Fee includes: conference tuition, 3 refreshment breaks, 1 breakfast buffet, 1 luncheon buffet and bus transportation. Transportation Bus transportation will be provided for your visits to the Capitol on Thursday morning. The bus will leave from the front door of the hotel starting at 7 am and continue running back and forth until early afternoon. Bus will depart from Capitol front steps. Spouses We do not include meals for a spouse or significant other at this meeting, but we do encourage them to come along and enjoy the Mall of America, IKEA and other points of interest in the area. Contact Rita if you would like to arrange for an extra meal. Special Diets If you need a special diet for either the breakfast or lunch please contact Rita at 763-746-0707. Refunds A refund will be given on advance registrations if the MMUA office is notified by 4:30 pm on March 22. A cancellation fee of $25 will be charged. Hotel Reservation (nformation Crown Plaza Hotel & Suites (formerly Holiday Inn Select) 3 Appletree Square (1-494 & 34th Avenue South) Bloomington, MN 55425 Reservations Click HERE to book vour quest room online! Enter your arrival date and how many nights you will be staying, then click CHECK AVAILABILITY (don't enter anything else - information will automatically populate to the discounted group block of rooms). You may also call directly to make reservations. Call 1-800-465-4329 and reference GROUP CODE: MMU or Minnesota Municipal Utilities Association-MMUA to get the discounted rates. Cut-Off Date TUESDAY, MARCH 8, 2011 Reservation requests received after this date will be accepted on a space and rate availability basis, Room Rate King or two double beds is $115 + tax Check-in Time: 3 pm Check-out Time: 12 noon Questions If you have any questions or problems with your registration or reservations please contact Rita Kelly at MMUA for assis- tance. You can reach her by phone at 763-746-0707 or email rkelly cr7i mmua ore. MMUA Registration Information Date: March 30-April 1, 2011 Location: Crowne Plaza Hotel & Suites (formerly Holiday Inn Select) Bloomington, Minnesota ~iiv Minnesota Municipal Utilities Association 3025 Harbor Lane Nonh, Suite 400 Plymouth, MN 55447 Phone 763-551-1230 Fax 763-551-0459 www.mmua.org Attendee Information Name: Name (2): Name (3): Name (4): Utility: Address: city: State/Zip: Main Contact: Email: Phone: REFUND: A full refund (minus $25 processing fee) will be given on advance registrations if the MMUA office is notified by 4:30 pm on March 22, 2011. PHOTOGRAPHS: By registering for this conference, I authorize Minnesota Municipal Utilities Association (MMUA) to photograph me at this even( antl use such photographs in MMUA marketing pieces (both electronic and print). I understand that I will not be paid for giving this consent. QUESTIONS: Please contact Rita Kelly by email rkellv(a~mmua.org or phone 763-746-0707. Register online: www.mmua.org under Calendar link Register by mail: Minnesota Municipal Utilities Association 3025 Harbor Lane North, Suite 400 Plymouth, MN 55447 Register by phone: 763-746-0707 Register by fax: 763-551-0459 Registration Fees $225 on or before March 16, 2011 $250 on or after March 17, 2011 Conference fee: $ x Number of Attendees: Total Due: $ Payment ^ Check Payable to MMUA ^ Bill Utility ^ Purchaseorder# Registration Deadline is March 16, 2011 A1j~~~ A~ /~~~ ~~~ ociation Minnesota Municipal utilities Ass THE YEAR 1N REVIE~N 2010 ...~ -T +~ 4`' ~ ~ r.'f ~.... ^:. ~, ,~ 4 ~ I 'i 9 r• JJ r+ . ~ ~~e~. SE ~~ ~~ .~`~ ~~ Introduction Best wishes for the New Year from MMUA! With a new Governor, a new Minnesota Legislature, and a new Con- gress all ready to hit the ground running, 2011 promises to be a very interesting and busy year. The beginning of the year is a good time to look ahead and anticipate what the new year will bring, and it's also a good time to reflect on what we accomplished in the year that just ended. As always, thanks for your membership, your support, your enthusiasm, and your participation. MMUA is the embodiment of the phrase, "From many into one ...." By working together, many small municipal utilities across the state are able to speak with a strong voice and make themselves heard. By combining efforts we can accom- plish so much more than we could acting alone. Thanks to you, we are able to demonstrate every day that the whole is greater than the sum of its parts. We hope that you will enjoy this opportunity to look back with us over the course of 2010 and review some of the -Jack Kegel highlights of a very busy year. We think we have a lot MMUA Executive Director to be proud of, and we know that we have a lot of work ahead of us in 2011. Contents Goodbye, hello ...........................................2 Government Relations ..............................3 Federal Legislative Activity ......................? Energy Services ........................................9 Safety & Training ...................................10 Meetings and Workshops .....................14 Communications and Publications ......14 Other Activities ......................................15 2011 Calendar .......................................16 Goodbye, hello An association almost by definiticn consists of people. In 2010 we said goodbye to three em- ployees who moved on to retirement. Director of Education Bonnie Hayes, MMUA'slongest serving staff member, retired after 28 years of service. Regional Safety Coordi- nators Norm Hauschildt and Mike Nemes also retired at the end of the year. Doug Walton and John Marz kept an eye on things at the 2010 MMUA Overhead School. Rita Kelly, MMUA's sec- ond longest serving staff member, has assumed many of Bonnie's duties. Her new title is Director of Administration. Larry Pederson joined MMUA as Director of Finance in September, bringing us the benefit of his strong background in account- ing and financial man- agement. Bob Sewell is the new Regional Safety Coordinator for the East Central Group, and Marc Machacek is the new Regional Safety Coordinator for the AOR group. 2 - 2010 Year In Review MMUA Regional Safety Coor- dinators Mike Nemes, left, and Norm Hauschildt. MMUA Director of Education, pictured at left above with an- nual meeting keynote speaker Jackie Pflug. Government Relations MMUA's Government Relations program represents the interests of municipal utilities before federal and state government entities. Staff includes Government Relations Director Greg Oxley and the Senior Govern- ment Relations Representative Bill Black. Two outside consultants assist in this work-Doug Carnival from the McGrann Shea Carnival Straughn and Lamb law firm on the state level and Michael Nolan, MJN Consulting, on the federal level. Annually, the MMUA Government Relations team at- tends dozens of legislative hearings and monitors count- less hours of debate at the state and federal capitols. During the 2010 state legislative session, the preeminent issue was proposed restrictions on the use of eminent do- main by utilities. The target of these proposals was said to be large transmission and gas pipelines. However, the bills before the House and Senate would have affected municipal electric, gas, water, wastewater and other utilities to great detriment. MMUA staff led the effort along with the League of Minnesota Cities to influence legislators in both bodies to adopt changes to limit the scope of the law changes, averting a very bad situation for MMUA members. Efforts included meetings with committee chairs, bill sponsors, as well as proponents and other opponents of the legislation. MMUA was key to crafting the compromise that ultimately became law. MMUA Government Relations is typically involved with the following functions. 1) Monitor Government Activities 2) Communications/Member Relations 3) Research & Analysis 4) Communications with Policy Makers 5) Issues Management State Legislative Activity Monitor Government Activity and Industry Trends Review of Proposed Legislation More than 1,000 bills are introduced in a typical Minne- sota legislative session. MMUA's legislative staff reviews bills to determine impact to the MMUA membership. Significant bills are tracked. Bills that would have a ma- jor impact on the membership are thoroughly analyzed. Staff informs members about the bill, develops positions and policy alternatives, testifies at hearings, and edu- cates legislators and legislative staff regarding MMUA's concerns. During the 2010 legislative session MMUA's legislative tracking list included more than 150 bills. Legislative Hearings During the 20101egislative session MMUA staff aC- tended dozens of legislative hearings. MMUA was able to effectively address a key eminent domain issue largely as a result of what legislators said about the issue in committee. On the federal level our consultant, as well as legislative representatives from the American Public Power Association, did the same thing at the Congressio- nal level on climate change and other issues. Interact with Executive and Legislative Staff Much of what is to be proposed at the Legislature or Congress can be predicted as a result of discussions with the Governor's staff or the staffs of committees. Rela- tionships are vital because they affect willingness to share information. Any improvements in the Conserva- tion Improvement Program {CIP), For example, can only result from discussions and negotiations with staff for the Governor, legislative staff, the environmental com- munity and the utilities. MMUA worked on cultivating these important relationships throughout the year. Interact with Legislators MMUA had many individual meetings with legisla- tors over the course of the year to find out where they were coming from and to provide information about the impact of various proposals on municipal utilities, and in some cases, the municipal utilities in their districts. We held meetings with the chairpersons of the House and Senate energy committees, members of leadership, and members of important committees. We have also made a special effort to talk with the legislators whe represent municipal util- ity districts. 2010 Year in Review - 3 MMUA Government Relations Director Greg Oxley makes a point. MMUA Washington Representative Michael Nolan, Execu- tive Director Jack Kegel and Senior Government Relations Representative Bill Black, from left to right. Marshall Municipal Utilities G.M. and MMUA Government Relations Committee Chalr Brad Roos, left, thanks Rep. Bill Hilty for his comments at the MMUA Legislative Rally. Interact with Other Groups and Lobbyists Much of what MMUA staff discovers about what is going on at the capital comes from other lobbyists. This ex- change of information often comes though organizations such as the Minnesota Government Relations Council, the Minnesota Chamber of Commerce Energy Commit- tee and the League of Minnesota Cities (LMC). Utility lobbyists met regularly in 2010 to share information. PUC Hearings A great deal of gas and electric utility information comes from hearings before the Minnesota Public Utilities Commission (PUC). For example, information about investor owned utility plans to increase rates comes from information filed with the PUC, which will be important to the governing bodies of public power cities as they consider potential rate increases. Information found in utility integrated resources plans filed with the PUC is the source of much information that could affect the interest of municipal gas and electric utilities. MMUA regularly attended MPUC meetings in 2010. Meetings of Other National and State Groups Emerging trends that may well affect the operations of municipal utilities often are encountered for the first time at the annual meetings of various organizations. In 2010 MMUA staff attended the Mid-America Regula- tory Conference and the annual meeting of the National Association of Regulatory Utility Commissioners. The emphasie at both was on the "smart grid:' Staff attended the League of Minnesota Cities (LMC) summer meeting. Staff also attended the Mid-West Electric Consumers Association Annual Meeting to keep abreast of issues affecting the Western Area Power Administration and its wholesale customers. (Western supplies a significant amount of the wholesale power to 47 of Minnesota's 125 municipal electric utilities.) Informational Seminars MMUA attended many seminars and informational meetings, including the Minnesota Environmental Ini- tiative (MEI) meeting, `tiVater Policy in Minnesota: Plan- ning the Next Chapter" and Windustry's "2010 Wind Energy Conference." The MEI meeting focused on the huge and growing requirements concerning the clean- up of water and wastewater, which could significantly increase the cost of these operations for municipal water and wastewater utilities. The Windustry meeting con- firmed our belief that, were it not for the election, wind advocates would have pursued a very aggressive effort to increase wind mandates for electric utilities. Review Reports and Studies Reports and studies, done by either the government or private concerns, are often a prelude to legislative or ad- ministrative action that could have a substantial impact on municipal utilities. The LMC study Cities, Services and Funding: Broader Thinking, Better Solutions, is such a report. This study, released in June, projects that cities of every size, in every region, will be (in LMC's words) "broke" by 2015 if no policy changes are made. The report also projects that by the year 2025 cities overall would see a deficit of 35 percent of city revenue. This impending financial crisis for cities is likely to have an impact on municipal utilities as well as all other city operations. Upon review of this report, MMUA staff be- gan aresearch effort to help its members deal with these possible challenges. Another bellwether report, APPA's Implications of Greater Reliance on Natural Gas for Electricity Gen- eration, takes a detailed look at natural gas demand, supply, transmission, and storage infrastructure and the operational considerations that electric utilities will need to take into account if carbon emission rules require a switch from coal to natural gas. Member Communications/Member Relations MMUA informs its members of government activity and seeks member input about how these actions might af- 4 - 2010 Year in Review MMUA's Greg Oxley, at left, discusses climate Issues with Brad Crabtree of the Great Plains Institute and state Rep. Michael Beard (R-Shakopee), at right. fect them and how they wish us to proceed. This inter- change is accomplished several ways. Conference Calls and Reports During the legislative session MMUA put out a weekly legislative log, which covered the status and background information about legislation likely to affect municipal utility operations in Minnesota. MMUA also conducted weekly Government Relations conference calls during which members were briefed and asked their thoughts about specific legislation. During the rest of the year these calls were scheduled on an as-needed basis and often included reports about actions on the federal level. Legislative Rallies The most important government affairs events for MMUA in 2010 were the MMUA Annual Winter Meeting and Legislative Rally and the APYA Washington Legis- lative Rally. MMUA also participated in the American Public Gas Association Legislative Rally. Although the main purpose of these events is to learn about state and national issues and make contact with members of the Minnesota Legislature and the Minnesota Congressional delegation, these meetings represent another opportu- nity to speak to MMUA members individually and to secure their input. Individual Meetings In addition to the hundreds of e-mails and phone con- tacts MMUA government relations staff had with members throughout the year, we held special meetings with the utility commissions at Brainerd, East Grand Forks, Elk River, Glencoe, Grand Rapids and Sleepy Eye. MMUA held meetings with employees at Elk River, Rochester, Thief River Falls and Winthrop. MMUA held individual meetings with managers (or top staff) from joint action agencies CMMPA, MMPA, MRES, NMPA, SMMPA and attended the open house held by Heartland Consumers Power District. Staff also met with municipal utility managers from Austin, Chaska, Owatonna, Elk River, North St. Paul and Shakopee. During the MMUA Technical & Operations Conference, MMUA met indi- vidually and collectively with municipal utility manag- ers and superintendents from several communities who might not attend other conferences. Annual Meetings MMUA's three major membership meetings-the Win- ter Legislative Conference, the Summer Meeting, and the Technical & Operations Conference-offer excellent opportunities for talking with members about particular concerns or developments on legislative and congressio- nal issues that affect them. Other Meetings MMUA government relations staff attended the energy conference last winter put on by Alexandria. Staff also attended customer appreciation day at Owatonna. We met individually with legislators numerous times. We look forward to many such meetings in the future. Outreach Due to the growing need of Minnesota cities to secure adequate revenue, a number of members have expressed concerns about potential efforts to sell the utility or re- quire significant increases in municipal utility contribu- tions, in either cash or labor, to other operations of their respective cities. MMUA has provided members with useful information on various issues including utility enterprise fund reserve policies. These outreach efforts have increased the cohesiveness between MMUA and its members and has further proven the value of legislative research activities. Legislative Report MMUA staff spends several weeks after the end of each legislative session compiling a legislative report, which provides a narrative of the history of legislation of inter- est to MMUA. This report not only provides MMUA members with an accounting of MMUA legislative activities for the year, it offers and invaluable reference resource for the future. Research & Analysis Payment in Lieu of Tax The payment in lieu of tax (PILOT) study performed by MMUA Government Relations staff has shown that municipal electric utilities are providing, on average, six percent of their operating revenue to their respective cities. The survey now includes information about loans made by municipal utilities. This survey is an excellent way to prove the worth of municipal utilities to their cities. Next year MMUA staff will expand the PILOT survey to include the transfer of natural gas revenues. A growing number of managers are asking for copies of this study, as they look for direction in response to requests for more support from their city governments. 2010 Year In Review - 5 MMUA's lack Kegel, and Congressman Collin Peterson, at the Summer Meeting. Service Territory Hibbing Commissoner John Berklich, U.S. Senator Amy Klobuchar, former Owatonna General Manager Steve Shurts and Alexandria General Manager AI Crowser, from left to right, at the APPA Legislative Rally. Rate Study There is an old management adage that "you can't man- age what you don't measure." It is important that policy makers know that generally, municipal electric utilities are at rate parity with their neighboring utility. We also need to know when these rates are starting to climb above neighboring utilities. For this reason, the Govern- ment Relations staff has completed a 20-year electric rate comparison using data collected by the U.S. Depart- ment of Energy. Elements of the study have already been provided to some municipal utility managers. History of Municipal Utilities In response to an inquiry from a legislator, MMUA Government Relations staff embarked on a study of municipal utility origins. This study demonstrated that municipal utilities grew only in response to local re- quests. Previously, we knew the date of origin of about 75 percent of our electric members. The study helped us find the origin dates of the remaining 25 percent and demonstrated that more than half of our municipal electric utilities have been in operation for more than 100 years. We also uncovered more information on the role the local power plants owned by municipal utilities played in the formative years of the utility industry in Minnesota. Through extensive research MMUA staff also rediscov- ered another facet of municipal history that could prove useful. Between 1914 and 1947 as many as 70 municipal electric utilities were established and then were pur- chased by private utilities. The reasons behind the sales provide important lessons for today. Water & Wastewater Clean-up In the past few years we have been increasingly con- cerned about the steep increase in the costs of construct- ing new water and wastewater treatment facilities. MMUA has begun tracking these costs to enable us to demonstrate the magnitude of the cost impact on cities. 6 - 2010 Year in Review MMUA continues to conduct research on a variety of fronts that could be useful to a municipal utility involved in an electric service territory issue. C¢rbon Reduction Efforts Although the election has put an end to the probability that cap and trade legislation will be passed in the fore- seeable future, for much of 2010 MMUA staff had to con- sider this legislation viable. Consequently, the Govern- ment Relations staff embarked on an effort to ascertain the potential impact of a cap and trade bill on individual utilities. The study will be important going forward be- cause the information we developed will provide a more comprehensive narrative to policy makers. Communicating with Policy Makers Legislative Rallies As stated before, the most important Government Rela- tions events for MMUA in 2010 were the APPA Wash- ington Legislative Rally (Feb. 22-25, Washington, D.CJ and the MMUA Winter Legislative Conference (March 24-26, St. Paul). The APPA rally, with another good attendance of 75 Minnesotans, concentrated on proposed climate change legislation and rail regulation. Meetings with members of the delegation went well. Much of that successful effort was directly attributable to solid advance work- meeting with Congressional staff, securing the meeting room, making appointments with delegation members, and developing clearly defined position papers in accor- dance with the wishes of the membership after several conference calls and many discussions. The MMUA rally, attended by more than 100 people, was very successful. Participants met with legislative leaders, who seemed to support our efforts to prevent expansion of renewable energy requirements and the Conservation Improvement Program. Several expressed outright support for our position that these programs should not be expanded for the next several years and, in the case of the CIP program, should be redefined. Meeting with Individual Policy Makers Throughout the 2010 legislative session MMUA held meetings with the chairs of the House and Senate en- ergy committees, with members of leadership, and with members of important committees. MMUA will make a special effort in the upcoming 2011 session to speak to all newly elected legislators about the importance of mu- nicipal utilities to their respective communities and find out their attitudes toward municipal utilities. MMUA will likewise meet with Minnesota's newest Congress- man, Chip Cravaak, (R, Ban District). Day-to-Day Lobbying Perhaps the least glamorous, but potentially most impor- tant, aspect of government relations is making sure we are on the scene and ready for action when an important opportunity presents itself. MMUA staff is at the Capitol when the legislature is in session or whenever relevant committees meet. We do our best to provide clear, ac- curate, and reliable information to legislators and other policy makers on the issues that impact our member- ship. Our consistent presence at the Capitol pays large dividends in recognition, respect, and effectiveness. Policy Management A key element of MMUA's government relations pro- gram is identifying emerging issues and influencing the development of policy relating to those issues at the earliest available opportunity. Policy Meetings To identify and gain clear knowledge about issues that may affect municipal utilities, Government Relations staff interacts with many groups that have related and sometimes conflicting interests. Some of the interactions that shed light on policy issues in 2010 included: • Legislative Energy Commission meetings held by chairs of the legislative energy committees. • Legal seminars hosted by the heads of the state agen- cies responsible for energy, telecommunications, pol- lution control, natural resources and environmental quality as well as Minnesota Senate legal counsel and Minnesota Public Utilities Commission executive staff. • Electric regulatory restructuring stakeholder meeting held by Rep. Jeremy Kalin (DFL-North Branch). • Discussion of proposed legislation with electric utility representatives regarding public housing and utility bill ing problems held by legal aid representatives. • Energy efficiency summit at the University of Minne- sota held by U.S. Senator Amy Klobuchar. • Legislative issue previews held by the Minnesota Chamber of Commerce, Minnesota Environmental Ini- tiative and the Minnesota State Bar Association. Policy Action Among the many issues of MMUA's interest at the legis- lature in 2010, new eminent domain law changes clearly stood out. Work done by LMC and MMUA staff helped cities and their utilities avoid detrimental impacts of the legislation as it was proposed. In other areas, MMUA successfully worked to block changes that would have unreasonably limited the ability of municipalities to pro- vide telecommunications service to their citizens and se- cured recognition of municipal utility wind developments of any size as "Community-Based Energy Development." Staff also participated in discussions at the Minnesota Chamber of Commerce regarding sulfate levels in water discharged to water bodies in which protected wild rice grows. The Minnesota Pollution Control Agency's planned action on the "Wild Rice Rule" could significant- ly affect Minnesota's wastewater utilities. Preparing for 2011 In preparation for the 2011 legislative session, staff has begun exploring the likelihood and potential effects of legislation relating to state agency fee increases, repeal of the state's bans on electricity from new coal-fired and nuclear plants, revisions to the state's Renewable Devel- opment Fund, environmental permit streamlining and utility-related tax issues. Federal Legislative Activity The 111th Congress was busy: climate change legisla- tion from Day One; an energy bill passed by the Senate committee; rail reform; EPA regulation; renewable en- ergy standards; cyber security; RICE rule; FERC over- sight; CFTC regulation; and PMAs. On all these issues MMUA played a role, working with and educating the Minnesota congressional delegation, remaining active all the way to the final days of the lame-duck session, hop- ing for positive tax legislation. Here are just four issues where MMUA was active: Climate change/clean air The 111'" Congress was the scene of great legislative ac- tivity on climate change issues. The House, under Demo- cratic leadership, passed a major, comprehensive bill seeking mandatory greenhouse gas emissions reductions and addressing global warming (Waxman-Markey cap and trade bill); that measure, however, languished in the Senate during much of the 2d session. In the end no climate change bill cleared Congress. The electric utility industry, including the public power community, gener- ally opposed these legislative initiatives and focused on several key issues: potential rate increases to custom- 2010 Year In Review - 7 U.S. Rep. Michelle Bachmann talks with SMMPA's Larry Johnson and Delano's Hal Becker (facing camera). Senate Agriculture Committee; several follow up meet- ings with House and Senate staff; letters from coalition members to Congress and letters among Congressional leaders. A colloquy on the independent financial advisor was also developed and delivered on the Senate floor. While final passage did not contain everything request- ed, MMUA's assistance was critical to improving the bill throughout the process. ers; new environmental regulations; realistic emissions targets and timetables; and the allocation o£ emissions allowances. Throughout the debate MMUA was in constant con- tact with members of the MN congressional delegation, especially key offices of Peterson, Walz, and Oberstar. In addition MMUA played a key role on the allocation issue, especially in the House. While the House Energy and Commerce Committee had primary jurisdiction over the bill, several other committees helped develop the final legislation, including Agriculture, led by Chairman Peterson. During intense negotiations between these key committees, MMUA was actively engaged on the alloca- tion issue. Working with the Chairman, and supported by other offices of the MN delegation, MMUA sought and procured key legislative changes that affected the out- come of the allocation formula devised under the bill for rural co-ops and small municipal entities. These changes were ultimately adopted as part of the final House bill. Financial regulation reform Both chambers of the 111th Congress passed historic and comprehensive legislation concerning the US bank- ing industry and financial markets; the bill was signed by the president last summer (Dodd-Frank Wall Street Reform and Consumer Protection Act). Public power and public gas systems had several concerns with this legislation, including new and potentially burdensome government regulations affecting "end-users" and the derivatives markets (electricity and natural gas), new provisions requiring an independent investor when mak- ing swap deals, and possible exemptions from certain Act provisions affecting transactions of energy-related commodities. Working with the American Public Power Association and the American Public Gas Association, MMUA played a critical role invoicing these concerns to Congressio- nal leaders: sending an MMUA delegation to meet with Chairman Peterson and committee staff; developing alternative legislative language to resolve key concerns; working with Sen. Klobuchar, a key member of the Rail reform/captive rail The 111°" Congress was the scene of great activity on captive rail legislation focusing on two primary mea- sures in both the House and Senate-the antitrust bill and the STB reform bill, which seeks major changes at the Surface Transportation Board. House and Senate committees approved the antitrust bill, while the Senate Commerce Committee approved its version of the STB reform bill. Unfortunately, the same House measure, sponsored by Chairman Oberstar, was never brought to a committee vote and ultimately the 111th never ap- proved final rail legislation. MMUA was active on the rail front, securing support from members of the MN delegation for the House initia- tives and helping to develop legislative strategy with the MN Senate offices. Both Sens. Klobuchar and Franken supported the rail bills but were unable to secure final passage in the waning days of the session. MMUA rep- resentatives held several meetings with Klobuchar and Franken staff, seeking to resolve differences between the Judiciary and Commerce panels, which both had juris- diction over the bills. T¢x/comparable financial incentives The public power community continued to fight last Congress for comparable financial incentives in tax legislation, specifically under the new 1603 Treasury Grant Program and the now-established Clean Renew- able Energy Bonds program (CREBs). Overall results were mixed: while the 1603 program was extended for one year, allowing the municipal electric community to continue receiving benefits of the stimulus program, no expansion of the program occurred, and CREBs failed to make the final cut in the tax package passed in Decem- ber. The Minnesota delegation, however, remains largely supportive of these efforts and MMUA was active on the tax front. For example, progress was made on CREBs in both the House and Senate~hanges were made to the program to increase funding for public power, changes actively supported by Reps. Walz, Peterson, and McCol- lum. Both CREBs and 1603 issues are supported by both senators, and MMUA secured signatures on key letters of support for both provisions in Democratic leadership letters this past session. 8 - 2010 Year In Review U.S. Rep. Tim Walz listens as RPU's Wally Schlink talks. Energy Services Municipal utilities have often struggled to reach the often-changing and increasingly stringent Minnesota Conservation Improvement Program (CIP) mandate. After being outgunned for years in an increasingly significant legislative and regulatory arms race, MMUA in 2007 hired Bob Jagusch, formerly manager of Mora Municipal Utilities. Along with utility experience, Jag- usch brought to the job a bachelors degree in mechanical engineering and a master's in nuclear engineering and over 20 years of experience in the U.S. Navy. Office of Energy Security Approximately 60 percent of Jagusch's time is spent working with the Minnesota Office of Energy Security (OES) on CIP-related issues. Much of this effort stems from the 2007 Next Generation Energy Act, which man- dated utilities to reduce growth in energy sales by 1.5 percent per year. Many details in the act were eventually delegated to OES. Jagusch has spent a great deal of his time as the municipal utility representative on the OES task Force that is developing the rules for reporting energy savings to the state. This project often required him to epend three days a week meeting with the group in St. Paul. Among the other CIP issues Jagusch has worked on in 2010 were: • Consumer-based programs • What is to be considered utility infrastructure in terms of energy savings opportunities • Codes and standards • Improving performance of low-income programs. Jagusch has worked with a group dealing mostly with `big picture' issues relating to compliance with the CIP mandates, and has also participated in or monitored working groups, comprised of various interested parties, working on details of issues related CIP. He was an ac- tive participant on the state's "deemed savings database" work group. This database will result in utilities getting more credit for energy savings occurring as part of gen- eral societal energy efficiency improvements: MMUA's efforts to correct mistakes in this database promise to save municipal utility customers millions of dollars each year. Flexibility in meeting the CIP requirements was a con- stant MMUA goal. MMUA was able to achieve a number of small victories in the CIP rule development, which will benefit our members. Through MMUA's efforts, small municipal gas/electric utilities, which are not required to have gas CIP pro- grams, will now be allowed to convert natural gas sav- ings to kilowatt-hour savings. Municipal electric utilities serving cities with no natural gas service will now be al- lowed to participate in home or building weatherization projects and convert projected Btu savings into kilowatt- hour savings. MMUA also helped drive through an agreement that if your utility is seeking a Minnesota Certificate of Need, your utility can claim savings for supply-side energy efficiency upgrades. These savings could be sizeable if, for example, you are upgrading a transmission line from 69 kV to 115 kV. Devices used for VAR control can be counted for CIP expenditures and energy savings calcu- lated and claimed. MMUA's Jack Kegel and Bob Jagusch (standing) talk with The Wenck Group's Leo Steidel (at computer) and Joe Plum- mer of the Minnesota Office of Energy Security. Griffin Project' Faced with helping municipal utilities pursue a Conser- vation Improvement Program with limited resources, MMUA developed an innovative program that leverages the strengths of several cooperating organizations to get the job done. Jagusch enlisted the help of the University of Minnesota Clean Energy Resource Teams, univer- sity students from multiple engineering disciplines and the Minnesota Chamber of Commerce `Energy Smart' commercial-industrial audit program to bring all the resources necessary to assist a municipal utility with broad community support. The success of the program in Ely, nicknamed the `Griffin Project,' enabled MMUA to secure funding support from OES to continue this spe- cific program for the next three years. The project is now working in Hibbing, with North St Paul to follow. s Opening doors MMUA's intensive work with OES has opened a lot of doors. Several municipal utilities have obtained grant money with MMUA's assistance. 2010 Year In Review - 9 MMUA is also keeping an eye on what could become major developments in the future. An example is our participation in the fledgling Minnesota Smart Grid Co- alition. We participated in various meetings, and MMUA subsequently played a role in funneling `smart grid' grant dollars to Rochester, Ely, Brainerd and Shakopee. Our participation with the Minnesota Clean Energy Resource Teams (CERTS) led to a $25,000 grant to New Ulm High School (matched by the New Ulm Public Utili- ties Commission) for a carbon dioxide reduction project. MMUA made several CERTS energy efficiency programs available to municipal utilities, including: refrigerator recycling, vending machine efficiency programs and a programmable thermostat program. Tecltinical Analysis Our engagement with state government also led to a seat on the Governor's Workforce Development Council committee developing energy sector partnerships. This group is working with a $6 million federal stimulus grant to develop education and training for Minneso- tans in renewable energy, energy efficiency and biofuels industries. MMUA's Director of Energy Services also serves as our primary technical analysis for federal and state legisla- tion and proposed regulations. He works closely with the MMUA government relations staff to ensure that they have the best information available regarding the impact of proposed legislation and regulations. Jagusch meets frequently with state and federal lawmakers and their staffs to help them understand the scientific underpinnings (or lack thereof) of various proposals. He spends a lot of time working closely with staff from the American Public Power Association, dealing with federal EPA rules and proposed rules. RICE Rule Included in this effort is working with APPA and Mid- west municipal utilities on strategies to deal with the Reciprocating Internal Combustion Engine (RICE) rule. This rule has many public power systems in the Midwest very concerned. The rule's stringent emissions require- ments will in many cases require expensive retrofits that may render some municipal plants obsolete. MMUA is participating in an APPA task force that will be working with EPA in an attempt to soften the impact of the rule. Since the rule hits the Midwest particularly hard, the Midwest municipal utility associations are also working together to bolster the APPA effort. Member Assistwice Despite the busy schedule, Jagusch always has time to help an MMUA member. He worked with dozens of MMUA members in 2010 and looks forward to doing so again in 2011. "I will help whomever calls," he said. Safety and Training Over the past fifteen years MMUA's safety and training program has evolved under the leadership of Safety and Training Director Mike Willetts from modest beginnings into a comprehensive and highly respected program that is viewed as a national leader among municipal utility organizations. Sa/ety Management Program MMUA's Safety Management Program is widely recog- nized as an innovative and effective model for provid- ingintensive, effective, safety management services to small, rural communities. The Safety Management system offers a consistent and comprehensive safety pro- gram for all city departments. The program emphasizes the development of a safety culture and includes month- ly employee safety training, development of a function- ing and effective safety committee, safety audits/mock OSHA inspections, accident investigation, safety grant application mentorship,standardized recordkeeping system, customized safety manual system, on call 24/7 for any and all safety services, and many more services. MMUA's Regional Safety Coordinator becomes an inte- gral part of the city's safety team. With the struggling economy and deep cuts to state aid, cities all across the region are looking to find savings wherever they can. We think that it's a strong tribute to the quality of our program that participation in the safety management program has remained quite stable in these difficult times. At the end of 2010 MMUA's Safety Management Program was serving 119 cities in Minnesota, South Dakota, and North Dakota. Nearly all of those cities are participants in one of MMUA's 13 Safety Management Groups. Training Center MMUA operates a comprehensive, state-of-the-art train- ing center on a 20-acre campus in Marshall. Now in its second decade of operation, the training center continues 10 - 2010 Year in Review MMUA's Mike Willetts along with Buffalo's Terry Nelson and Joe Steffel, from left to right, at the 2010 T&0 Workshop. Over the past year we completed a pilot project in the cities of Fairfax, Springfield, and New Ulm. Students at each utility completed the first year of their apprentice- ship program under the guidance of MMUA's instructor. The members and students were very happy with the MMUA instructor, the modest cost, and the user friendly on-site on-demand format. to set the standard within the public power community nationwide. The facility includes a complete overhead and underground distribution system, a natural gas distribution system, comprehensive meter training facili- ties, underground vaults, and up-to-date equipment for students to train on. The facility draws students from all corners of the country and worldwide to come together to learn how to become more proficient at the work they do. This year's classes have been popular and well attended even with the struggling economy. The evaluations from the at- tendees have been very positive and supportive of the programs and the quality of instruction. In 2010 we installed a substation to be used for train- ingpurposes. The substation facility will allow students to work with substation equipment dealing with real life situations under controlled and safe circumstances. Training programs presented at the training center are described in the Meetings and Workshops section. Kevin Thompson is MMUA's Training Center Coordinator. On-site, On-demand Four Year Apprentice Lin- eworker Career Development Program One of the challenges that municipal electric utili- ties face is recruiting, training, and retaining qualified lineworkers. For several years MMUA has been working to develop acost-effective and user-friendly program to help our members develop a raw, first-year apprentice into a fully qualified first year journeyman lineworker in four years. Gary Greenwald is MMUA's primary On-site, On-0emand and lob Training and Safety Instructor. MMUA's instructor visits the utility a number of times during each year of the apprenticeship. During each visit the instructor reviews the apprenticeship course work with the student to make sure that the student is keep- ing up with the academics. The instructor also provides the student with hands-on instruction in the technical skills that must be mastered during each phase of the apprenticeship. The program also includes participation in several of MMUA's schools each year. First-year ap- prentices receive 300 hours of instruction over the course of the year. Students receive 150 hours of instruction in years two through four of their apprenticeship. This new program is now open for enrollment to stu- dents from all MMUA member utilities. You can enter this program at any time during the year, so you have the flexibility to start your apprentices when the time is right for you and your employee. Use this program to grow your own by looking at other departments for that next employee that may have the passion to become a lineworker, or maybe look at your local high school for that next great employee. Job Training and Safety Program The JTS program is the longest running training pro- gram offered by MMUA. Several years ago we refocused the program to place a greater emphasis on technical training to reflect the duties of the lineworker, engineer- ing, metering and other pertinent departments within the municipal electric utility. The program is designed to help both new and established employees become more proficient at their jobs by offering a more advanced 2010 Year in Review -11 A recent aerial view of the MMUA Training Center. MMUA's On-site, on-demand program in aMion in Fairfax. Management Services and Manager Mentorship For several years MMUA has been offering management services to members. The evaluations have been very positive and encouraging. This system is very flexible and user-friendly and as it has evolved we are able to of- fer different levels of service. Jeff Becthold is the wordi- nator of this program. and changing curriculum. MMUA has truly taken this program to the next level of instruction. Every year the electric JTS group establishes topnotch training programs, and 2010 was no exception. The group started the year off with Slings & Rigging, then moved on to Transformer Connections. Next up was Pole Top & Bucket Rescue, followed by System Grounding. Our plan was to finish the year with Underground Cable Degradation, but we ewitched to Digger Derrick & Crane Operation in response to the new federal OSHA regu- lations. MMUA's Safety Team pledges to deliver new standards and training accurately & timely to insure compliance with relevant state and federal safety & health regulations. Gary Greenwald is MMUA's primary JTS instructor. Gas Circait Rider Program The gas circuit rider program has proven to be a very helpful and popular service for the gas utility member- ship. The program is wide-ranging and Hexible, with the ability to address a variety of needs such as on-site em- ployee training, assisting with annual MNOPS inspec- tions, technical operator training and tracking regula- tory changes. Membership evaluations of this program have been very positive. Last year Jim Ramnes, our Gas Circuit Rider, tackled many different subjects, including: ° Operator qualification tracking and recordkeeping; approximately 65 days of on-site operator qualification training; • Visiting 29 different city locations with MNOPS in- spections, along with many pre-inspection meetings; • Emergency procedure reviews with 10 members; • Gas system awareness training for 10 different mem- ber fire departments; • Worked on a new draft of the MMUA operator qualifi- cation manual and a continuous update of 0&M manu- als at member utilities. The first level service is to help a utility maintain a fully functioning operation after management turnover. MMUA can provide a fully qualified manager to keep the utility operating at an optimal level for the long term, or for the short term until a new manager is hired. The next level of service is mentorship. You may have an individual on staff who has good potential but lacks the experience and training to move into the manager's role without a support system. MMUA can provide a quali- fied manager who can mentor the inexperienced man- ager and provide the support the new manager needs to be able to grow into the role and succeed. This past year we have seen increased interest in the mentorship program. Included in the range of services provided under the mentorship program are: develop and oversee the implementation of a utility work plan; develop and manage an employee supervision and sup- port system; cultivate and nurture a team partnership between city, utilities and MMUA; promote and foster the team environment with all employees; coordinate goal setting and growth management; work with city and utility management teams with rate studies; work with power suppliers; work with engineering firms as needed for future projects; direct and coordinate project 12 - 2010 Year in Review MMUA's Vernell Roberts, left, catches upon some office work with Henning's Scott Grabe. MMUA's Bruce Westergaard, left, discusses how to use a piece of equipment at a recent MMUA training school. layout and development and on-call 24/7 for manage- ment services. League of Minnesota Cities Insurance Trust Regional Safety Group Program For over 10 years MMUA and LMCIT have been work- ingtogether in partnership to deliver safety services to League of Minnesota Cities members. The Regional Safety Group program is a very popular program that MMUA facilitates for the LMCIT. The RSG groupings are a flexible way for small members of the LMCIT workers compensation program to meet state and federal OSHA mandates under the guidance of MMUA staff. MMUA helps the small cities establish a working safety committee and delivers appropriate generalized safety training to the group throughout the year. By the end of 2010 MMUA was serving 15 LMCIT regional safety groups with a total of 85 Minnesota cities involved. An additional group is coming on board in January, 2011, bringing three more cities into the program. MMUA's Kurt Rothwell is the program leader. LMCIT/MMUA Generation Operations & Maintenance Project For the past two years MMUA has been working in partnership with the League of Minnesota cities Insur- ance Trust on a pilot project to develop a comprehensive, user-friendly operations and maintenance manual and data collection system for municipal generation facilities. The pilot project has been very productive and resulted in the development of comprehensive, high quality 0&M manuals in the two pilot communities, Hutchinson and Glencoe. LMCIT is pleased with the results and is look- ingforward to moving the project past the pilot phase and into the general implementation phase. We look forward to working with other generating municipal electric utilities around the state in the coming yeare. We expect to begin lining up projects for the next phase of the project early in 2011. The benefits of the program in terms of protecting valuable generating equipment and maintaining skilled and confident equipment opera- tors are substantial. Jeff Becthold is the coordinator of this program. E-Learning pilot project This past year MMUA has been working with a local company called CLMI to develop an on-line training cur- riculum to streamline general safety topics such as Right to Know and Blood borne pathogens. The MMUA safety team believes that if we can streamline general safety topics the MMUA safety staff will be able to spend more time on the more important safety concerns at your city/ utility. Mutual aid It seems like every few years one or more of our member utilities encounters a catastrophic disaster like a dev- astating tornado, Aood or maybe the dreaded ice storm, This was one of those years. Beginning in June we en- countered aseries of natural disasters, from the multiple twisters that devastated the city of Wadena to the floods in Owatonna, New Ulm, Truman, Jackson and several other communities. We never know when disaster will strike, but we do know that it is only a matter of time before the next one occurs. MMUA staff has gained a tremendous amount of hard-won experience in responding to tornadoes, floods, and ice storms over the years. MMUA staff is prepared to come to your community to assist in the process of rebuilding your facilities when disaster strikes. MMUA can organize and oversee the mutual aid effort so that your staff can concentrate on the many tasks that they will need to focus on in a disaster recovery effort. MMUA has developed asoon-to-be-released comprehen- sive mutual aid manual to help with many of the impor- tant factors dealing with the disaster recovery. In this manual you will find forms and procedures to organize the recovery effort and prepare for FEMA involvement. The manual also provides phone numbers to get help, starting with MMUA safety staff. MMUA is just a phone call away 24/7, so don't hesitate to make the call. 2010 Year in Review -13 MMUA's Jeff Becthold, left, in the Glencoe power plant along with power plant staff. MMUA's Gary Greenwald, left, joined several municipal crews as part of a recent mutual aid effort. Meetings and Workshops Major Meetings MMUA conducts three major membership meetings each year. Winter Legislative Meeting (Bloomington, Mar. 2A- 26). The winter legislative meeting focuses on policy issues and includes our annual state capitol rally. Members meet with legislative leadership as well as their indi- vidual legislators over the course of the morning. The meeting also includes presentations on a variety of timely topics. Featured presentations included "What Main Street Is Looking for from Utilities," "Solving Min- nesota's Transmission Dilemma," and "North American Gas & Power Overview." Summer Meeting (Arrowwood, Aug. 23- 25)'. The MMUA summer meeting is our largest membership gathering and includes the annual business meeting. The meet- ingfeatures aday and a half of professional education, a trade show, presentation of awards, and ample oppor- tunities for networking and socializing. Featured pre- sentations included "Implications of New Environmental Regulations for the Electrical Power Sector," "Keeping the Public in Public Power," and "State Budget Problems and the Impact on Minnesota Cities." Technical and Operations Conference (St. Cloud, Nou. 30 -Dec. 2). MMUA's newest major meeting is geared toward managers, superintendents, crew leaders, and others who are responsible for the daily operation of municipal utility systems. Last year's meeting featured presentations on leadership, surviving a major disaster, working with FEMA, accident analysis and prevention, and OSHA's new crane & derrick standard. Schools and Worhshops As usual, MMUA presented a variety of schools and workshops over the course of the year. Schools presented at the MMUA Training Center feature hands-on techni- cal task training with a strong emphasis on safe and efficient work practices. The following four schools were co-sponsored with the American Public Power Associa- tion and the Minnesota Rural Electric Association. •Overhead Distribution School. The most recent addition to the overhead and underground school is the journey- men leadership class. This class is designed to challenge the veteran lineworker with an enhanced curriculum to further develop leadership and technical skills. Underground Distribution School. See note above. • Transformer School! including a preconference work- shop on single phase transformer theory. This workshop is considered one of the best in the country. The program offers plenty of hands-on instruction with one of the fin- est instructors in the industry. Llke many MMUA schools, the Overhead School takes place at the MMUA Training Center. • Meter School. MMUA has developed extensive meter training facilities at the training center, and this work- shop is considered among the best. The program pro- vides challenging instruction for all levels of experience. Additional MMUA Schools • Substation School. This year's school emphasized sub- station operations and maintenance. • Locator School. We had very good attendance at this workshop in 2010. • Firstline Supervision. In 2010 we saw 13 new students come into this program designed to provide the first line supervisor with leadership skills needed in today's com- petitive market. MMUA Regional Worhshops • Effectively Managing Your Workplace. Presented by Vernell Roberts. • Electrical Workplace Safety: A Comprehensive Ap- proach. Presented by Bruce Westergaard. Communications and Publications Communicating with our membership and the general public is one of the fundamental reasons for MMUA's existence. MMUA Associate Executive Director Steve Downer plays a central role in fulfilling this function. Over the course of the year MMUA researched and answered numerous questions in regards to operation of municipal utilities. At times, the answer was gained through posting on an online survey on the MMUA website. As is the case every year, MMUA produced a number of information publications in 2010, including 11 monthly 14 - 2010 Year in Review Resource newsletters for MMUA members in 2010, 30 Connector newsletters for members to send to their cus- tomers, as well as 12 Capitol Tattler electronic legisla- tive updates. MMUA also produced the 2010 MMUA Directory, posi- tion paper books for the APPA Washington Rally and the MMUA Legislative Meeting, the Minnesota Legislative Directory and the annual Legislative Report, as well as brochures for MMUA's training programs and meetings. Advertising for MMUA publications was solicited and administered. A new MMUA brochure and a new general brochure on municipal utilities were developed, as welt as various maps and PowerPoint presentations. Downer played a number of other roles, including: • Presentations before city councils, utilities commis- sions, community colleges, etc., on a variety of topics relating to municipal utilities and their operation. • Maintained the MMUA website (along with Charles Anderson) and developed and posted online registration forms for meetings. • Conducted eight on-line surveys to gather information for members. • Administered committees and the MMUA Tom Bovitz Memorial Scholarship Award and the MMUA Drug and Alcohol Testing Consortium. • Kept an eye on low-income and telecom issues while serving as chair of the Salvation Army HeatShare advi- soryboard and as a member of the Blandin Foundation's Broadband Strategy Board. Other Activities Surveys Like any business, a municipal utility needs to know how it stacks up against its peers. Survey data is one of the best ways to obtain this important business intelli- gence. MMUA conducts a variety of surveys on a regular basis and distributes the results to the membership. In 2010 MMUA's Rita Kelly conducted the annual rate and salary surveys. An employee benefit survey is scheduled For 2011. Information Technology With 28 employees, more than half of whom do their work for members scattered across the entire state and beyond, communications is a big issue for MMUA. Making sure those links are up and running is MMUA Information Technology Manager Charles (Charlie) An- derson. He is a familiar face to those attending MMUA meet- ings, where he makes sure our audio and video is work- ingproperly. Anderson was busy in 2010 with local and wireless networking issues, including email, Blackberry and Blackberry Enterprise Server work. He also maintains the office phone, messaging and critical battery backup systems. Anderson is a Windows Server Administrator and makes sure everybody's antivirus protection is updated and running. When something goes wrong, Anderson figures out what happened and how to fix it. If MMUA buys a new computer it first passes through Anderson's hands. He handles software installa- tion and setup, schedules warranty repair work for computers, servers and printers, troubleshoots, rebuilds computers and projectors when necessary and reviews and tracks hardware for repair or replacement. Anderson also is involved with updating the MMUA web page and controls the member profile and passwords for the MMUA website. Association Software Projeet ' In 2010 MMUA embarked on a joint project with the Iowa Association of Municipal Utilities and the Munici- pal Electric Utilities of Wisconsin to develop custom- ized software designed to automate and facilitate many typical functions of a municipal utility association. By working together and sharing costs, each organization will realize significant savings. The contractor for the project is SFA Solutions of Plymouth. There are three primary components to the project: • "OnContact" customer relations management software will be customized to simplify event management and registration, training recordkeeping,and other typical association functions. • Anew and more robust SQL Server database will be developed for each organization. • Each organization will receive a completely rebuilt web site that is optimized to facilitate event registration and provide member access to member data. We anticipate that the first two components of the proj- ect will be installed and operational in early March. The new web site should be operational by April or May. 2010 Year In Review -15 MMUA Information Technology Manager Charles Anderson. 2oi~. Meeting/Training Center Calendar ~iiiv Meter School &Pre-Conference Feb. 8 - 11 Marshall APPA Legislative Rally Feb. 28 - March 3 Firstline Supervision February 9 - 11 Plymouth Firstline Supervision March 9 - 11 Brainerd Substation Workshop March 15 - 17 Shakopee Winter Legislative Conference Holiday Inn Select - Bloomington March 30 -April 1 Locating Workshop April 26 - 27 Marshall Underground School May17-20 Marshall Annual Summer Conference Aug. 22 - 24 Breezy Point Overhead School September 20 - 23 Marshall Firstline Supervision October 5 - 7 Brainerd Firstline Supervision October 26 - 28 Plymouth x .~ ---,rii; -: ~ Technical and Operations Conference December 6 -8 St. Cloud Three-Phase Transformer Connections & Pre-Conference December 13 - 16 Marshall MMUA, 3015 Harbor Lane North, Suite 400, Plymouth MN 55447. Phone: 1-800-422-0119. Fax: 763-551-0459. Web: www.mmua.org A couple big ticket energy bills advanced in the Minnesota Legislature this week. Hearings on additional issues of interest to utilities are likely in the coming weeks. While Republicans in the Legislature are having their way so far, a tempering thought remains in the back of everyone's minds: Will DFL Governor Mark Dayton sign any of these bills? On an 11-6 vote, the House Environment, Energy and Natural Resources Committee Tuesday approved HF 72 (Rep. Michael Beard, R-Shakopee), which removes the carbon dioxide emissions ban from new electric generation imported to or built in Minnesota. The bill advanced to the House Commerce and Regulatory Reform Committee. The Senate companion, SF 86, awaits its first committee action. Critics of the bill said it takes a step back in dealing with global climate change, is not needed because state officials could authorize a new coal plant, and is "bogus" because the chance of building a new coal-fired power plant in Minnesota is very slim. Proponents said the state will have growing energy needs in the next decade. Along with enabling future plants, the bill would allow importation of power into the state from Spiritwood Station, a plant built by Great River Energy in North Dakota. Allowing importation of power from Spiritwood is currently being examined by the Minnesota Public Utilities Commission. The bill, if enacted, could remove the State of North Dakota's stated concern that Minnesota law prohibiting importation of coal-fired electricity from North Dakota plans violates the Commerce Clause of the U.S. Constitution. The Minnesota Senate Wednesday voted to lift a 16-year-old moratorium on building nuclear power plants in Minnesota, approving SF 4 (Sen. Amy Koch, R-Buffalo) with bipartisan support, by a margin of 50-14. The companion bill (HF 9) is expected to come up for a House vote soon. A spokersperson for Gov. Mark Dayton's was quoted as saying the Governor would consider signing the bill if the waste-storage issue is solved, if utility customers are protected from soaring rates and if no weapon grade material is present in Minnesota. Bills have been introduced in the House and Senate (HF 75 and SF 86) that would return the state's Conservation Improvement Program (CIP) and Renewable Energy Standard (RES) to pre-2007 days. While these bills are not likely to become vehicles for legislative action themselves, the Senate Energy, Utilities and Telecommunications Committee is rumored to be planning hearings about the CIP issue on Feb. 15 and 17, and additional CIP-related bills may be introduced. Municipal utilities certainly have concerns over CIP law as it stands. However, many are also heavily invested in CIP efforts and consider conservation their feast-cost resource. Striking a balance on making this law more realistic and effective, rather than gutting it, will likely be required to actually earn the Governor's signature. Vol. 14, No. 2 Feb. 4, 2011 Elk River 1 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 Theresa Slominski -Finance Director/Office John Dietz, Chair Manager Daryl Thompson, Trustee MEETING DATE: AGENDA ITEM NUMBER: Februa 15, 2011 6.1 SUBJECT: Staff U dates -Finance Director/Office Mana er DISCUSSION: We had 624 credit card payment transactions in January. This is a new record high in transaction volume, and is double what our highest volume was with the customer fee in place. This indicates customers are pleased with this transition. We did have one customer write a message on the payment stub asking the question of why they should have to subsidize this service for others to use. There was an article in our winter newsletter to help address this concern that others may have as well. The article identified the costs saved with reduced processing time and eliminating NSFs, and pointed out that it's a lower processing fee that ERMU pays. This is just a reminder that the auditors will be here for fieldwork the week of February 28`h - March 4`h. Final audited financial statements are planned to be presented at the April commission meeting. We are still evaluating the after-hours phone service to determine how we move forward after March 31 S` when GRE no longer provides this service to us. We visited a call center company in Woodbury, Opus21, on February ls`. We had planned on visiting a call center in Austin, CRC, on January 31 s` but had to reschedule to February 10`" due to weather. A couple of things that we are gaining with this change is the ability to expand our service center hours with a live person rather than no service after 4:30 (unless it was an outage), and having a call center at a different location which is less likely to be impacted by the same weather related outages/emergencies that we are. I will provide a verbal update to the commission about our visits and our decision at the meeting on Tuesday. I have included some information on the two companies in this packet. Opus 21 Management Solutions ,fit J~++-~ ~ 'The Porver to Do More QP'V~GI CtilPiiliCj 2ii:inc Csa!tralCQC'.CaG!^'sv==i IAain Menu a:r~ve~s~~ .~ -...ri'i3...: ctr~ara+.^.ar~s cn c~.n~r..~ ~"4, r 4 1 T7Y'~' n 3v. ~~..' 5key5 mp'fe'aYLL~ ''`"~.i ~3..`. Pro¢css maw~'+'~nmmesu r::., P.~2d S~ee'vcF:c `fir ,r v':r ~ "55r'~ 'Y, c.:.~.-.r!as Page i of 1 5&: I a-d TraAni.r~ n'ma:~s tlmp2eernwr't IFaafcn r St_-c~ti~ezs About tls At OPt!5 we ose a 'prsrtrd' appresaearu tla shed new light on fire way yce do tlwssiness today. This meAhcd pr®mittlcg ~:mrdlgw,e perspectives on tlrow you ca;n sArerrgthw_n. enhance and accelerate pear cuarrertrt operations! procedures - so yoeu can Nravec the power to do mwe. IiLSil;mg tlnese key Nlennentls - vva can proeide yww w6Ctln AaiiErued soNuntiitNrs Ahab' wnitll inapror~ ycram u's arad avortk eE(rcuzctla~les. io:ro;rease eunsCCmmer'satilsAaeCilarr and save you moaoey. Sorrre oA AANe ¢rtakileal soGu6orrs uue oRfer ¢;rtUlulde Headquarteretl m St. Pasut. MPli~nnesota. we're a busuness managemenF aneA outsourang company thaF serves d!ile;mtls throughout North /Wrrerira. A,WOrte speceFloallly, we're a strategic organization tltlraC Aoraases on. eAAectively antl e9'F'wiently maxiimi¢irrg year resources. while minimizing Yo'a'r wmilCe-oE6s om losses. It all starts with tlhree essertcCilal'. components ` ct5 data IfrosCiirttg ` CusCamner bstllliilvM,A arced paymentl procesvi;!ig ` IkcbanmrdyoeuClbow;rnd oalA oerrAer actlLmNies ` Tra nimg acrd 51tiJllS etiewaVlopment ` Ortgamliwati!omal asse^asmen6 ar;ry deveto@''^nem[ SiraAegirt vimlanM1rwy and Process entlAanr:elrlRi'nt sf~LLddM11~5 ` Om~siluw sAa~;rng oA AramnA-Dune amr,' suC¢e;visary empllcny~es atcoo+aroAS receinvadrlle rrnanagemmecvtl ano rteeoe~orty ` Experienced, proRZ55ionaf dledteated People ` Proven. thorougr. dynamic proe~ssas Advancetl, inenovative. supario~r technology 6esC of alll, wYmeMer yow ease onle oe aCP. of ouar sartanl~s, ruc: ra;m Inelp improme youm aurrenntl ~imess praxAilces - to give powl lho pomrer Go do mmore. fN J I b 6i!'!!ry t CEe__zS. Ccr 9 CEr._=-1 Sk 1 d Fm ri;'! _ I ~'acES=. kr~ ~ t,_ n~ I ~:r[ .'e 8=rr.ire51 RScruE i~ Q.crrN _9 4k. 1 :?4~:,a.,a Copyrigtri~ ICde+6 50'G All riglrrps nstanvean. Q:iiiw:k h._n (o cmmla¢91fie w~p.eaAer ea!dlois site. http://www.opus2l ms.com/about.htm] 2/9/201 ] Central Contract Center -Opus 21 Management Solutions _, , t. +~ ~ ,The Power tq Do iNore QP~21 Cis Uri;itj° 8i11frtg Central C®'ata+_ttent_c 61t;,i~ r~^, lir~~n F.~¢~s Irt*~rovgrn,i Nain Yaeu x' d Central Contact Center .__ Cam! 1S 's Butiieoess Proox~ Outsourcing QBPOp Grnup us rteoogn¢ertl as a natilomaf leader in eflectli~vey marnagirm,) aiesdewmnar- relafed business prtocedures ®Y ernpBay~irny Phe serances ofi oue BPO Gr~c, dluents cam better sopped U'eei;r slraUegic prlartos, mxNndle improving their paeformance. pmafiAabiEutly ard' sharehdder vatere Depending on your needs. ouur assodaees are avadtable on a RuIB-time oe p~-averse basic. Md because our BPO Groin ig a steaxed eft center environneenN. you only ~ Ror ~ ame our agents spewed veorking om ycowe busimr_ss. To verify tteis, You rteceive a B;il9' a¢tivnH+b rt~'t~ deal details alt fkee onabpmd amad ue~,I~Poha-rNt calf vee teandted for you. Nine wee smmne. examgdias ~ Qall aehiwnTii~ uue ¢am IheameHlle Rar yow~. ~ ,K¢mva' a¢mulnd cab'9', cannpa~ir~ms. ~ Disecumrrc~G ar aarm¢allafimm rtwG~ adleeCs ~ BrNken'~ @aXnroear~ amang~,memzs ~ Caiu* ~@~71ti*ir ¢mmt'~ k'Iws.. uue ¢~, innal~ pna~a:ue: caitLmwurrd' one' coaritta~Cas fiorr Mhe rte¢oaerty od pastl- duue a¢¢uwn@5 or ahw_ seltee~ oR ad'dEai' pnrcnN;l~. amdl sarWV~s. kHaunr gnu,' wae' our Cemruxa CemGee'. ias avatiV'aRd~ armrt nearly tlo Mtt~~ swt¢paerr ymar ¢cnm~pam+y"s sh'atlegiie gs~J6 Wteat^s more,. witlPe our seasmce-ak are4~ Ma~lhi!X trained ore-sta6R cusCmmrsr se<v+¢e represerrtatives (CSRS). ewe cam carve as your Central Contact Cera9er. rTrs nmrzans yora cam use Your ovmr CSt2s tae miben staatlogi priorities. sucte as reeve buses deveBopm'vemt and madceting prtograms- ®rc ye,u own si',rc~y use us, and noP Fnave to hire a sCaff of ¢alq' agents at all Ilem flarct ~ asse~iah~ ae stlamdtiemg by r~ttrR m~mpr tt¢ rteamlm cuS 45s yycww >,'wsCCV,mers. va~r pouvsrfiu4: ne~ullUS. Page 1 of l CISaFJtnPMV 6~k4'rv3 P Geor€al COQ tali G=nt~r t Sk I ~ a~i lfr „rz~ ~{ ~ +T .c?<:a irmC~"+micmt' I Pars,~reC ~~riie= &N+J^u~Y_W!_ ^`-entut ~.±I Airgnr CopyrighF3 <'4'a~f SPG ABe n~Mtl6. neserttx@ S'A'c'? M1tzr_c.. Q® wmldm4 tlM~ wai~mn3slmr t~ W13s A41r. http://www.opus2l ms.com/ccc.html 2/9/201 I &*aismeaed Searo:;.es CRC -About About CRC CRC is a nationwide, cooperatively owned and operateq 24R contact center, wnlraf station, and software provides Feuntletl in 1992, CRC has steadily increased in the size antl scope of its operation with offices in Austin, Minnesota antl Dunlap, Tennessee. CRC provides services primarily to coral electric utilities, inWUding after-hours tlispatch, round-the-clock customer care, and monitoring of security arW medical ala+ms. ~@ert9Ymmm CRC will consatendy exceetl member antl employee expectations by being one of the Mghest quality antl best value contact centers, central stations, antl software providers in the Unitetl S[a[es. ~Ni®rtart CRC is a leatling, values-based, empleyee-focusetl contact center, central station, antl software provitler enhancing the services of its members throughout the U.S. by focusing on the human side at technology IIAuf 9"alWes Member-Driven Service Excellence Fiscal Respgnsibiliry Employee-Focused Communication Teamwork Innovation Continuous Improvement Community Involvement http://www.crc.coop/CRC Web/contentPages/About.aspx Page 1 of ] 2/9/Z~t~ CRC -Contact Center Service Options Customer Contact Center Brochure Customer Contact Solutions Our Contact Cnnter provides comprehensive call hantlling antl tletailetl reporting tools far thorough customer wre CRC's Contact CenM_r services are driven by live customer service representatives (CSRS), as well as Interactive Voice Response (IVR) technology. By customising services for your needs, CRGS Contact Center is preparetl and ready to keep your consumers connected. Provitle Nem full-service wnsumer care 24 hours a tlay! Inbound Call Services Eloctric Consumer Calls: Handling of power outages, partial power situations, emergency information, tlisconnectetl accounts, antl more. Member Sarviee Calls: General consumer questions, special protlucVService information, or other customizable information can be relayed to your members 24 hours-a-tlay. Billing Services: CRC can answer accounVbalance information, take payments and make payment anangemenis with reap time billing information. Propane and Natural Gas Calls: Due to the high priority of these types of calls, CR.C follows a tle[ailetl verification process to tletennine the urgency level antl initiates the appropriate action. New Sign Ups: Allow CRC to sign-on new consumers, receiving appropriate information to sef-up Your consumers for service. Otlrer Services Outbound Crew Dispatch: Dispatchers fallow specific procetlural instructions to no6ry antl dispatch an on-call crew, customizable by your specifc procedures. Dispatch wmmunication ran be handled via ratlio interconnect satellite, or cellular phone antl pagers. Dlrect Grew Check-In: Oetlicatetl toll tree crew check-in telephone number routes tlirectly to the tlispatching team, a highly treinetl subset of the customer service representative (CSR) staff. Automated Callback Rastoral Feature: Set up an automatetl callback [o be sent to your consumers upon service restore) to their electric outage. Phone Notification Syatem (PNS): Automated pre-recortletl messages are sent out simultaneously to unlimited consumers with any customizable message. Outbound Surveys: Contluct live or automated product or service member satisfaction surveys, purchase follow-ups, antl more! CRCLINK eCOmmunication Outage Management Systems IDM$) Proprietary e-wmmunication antl outage management software program, tlistributes outage and message call information from CRC to its customers' locations. Intertaces with aft major Customer Information Systems (CIS) antl outage management systems. If you are interes[etl in more information contact our Markeline and Saks Team ~.1 y _~ ~ ~ _ .. w _~"' ~~ ~ w ~M-:~_ ~_ ; -~ j~~ ~- . '~~1 Page 1 of 1 http://www.crc.coop/CRCweb/contentPages/ContactCenter.aspx 2/9/2011 Elk River ,~ Municipal Utilities 13069 Oeono Parkway • P.O. Box 430 EIk Rivec, 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 Da 1 Thom son, Trustee MEETING DATE: AGENDA ITEM NUMBER: Febru 15,2011 6.1 SUBJECT: Staff Updates Discussion: • Working on changing out our overhead cutouts and fuses. With this we go thru checking padmount transformers and padmount switch gear making sure nothing is leaking, the proper tags are in place, the map book matches the tags, and all the warning stickers aze on the outside. • Completed the inventory count, working with office to make sure everything is correct. • Continue working on tree trimming. • Installing adapters on the old A-base meter sockets so we can use the new electronic meters. • Working on testing the overhead and underground protective grounds. We aze also testing the fiberglass hot sticks. Both of these are done annually. • Working on cleaning and waxing the booms on the trucks. Diversified Inspections will be here in March w tests the booms. 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 ~ TAO: --- FROM: ~ Ellc River Municipal Utilities Commission Wade Lovelette John Dietz, Chair Superintendent of Technical Services Daryl Thompson, Trustee Al Nadeau MEETING Dr1'CE: AGENDA ITEM NUMBER: February 15, 2011 6.1 SUBJECT: ~taff Updates -Superintendent of Tecl~rical Services DISCUSSION: The following is a summary of projects and/or updates over the past several weeks: In January, the locating department had a total of fifty-two locate tickets. Two of those were "emergency" locates, and one was an update. This month the number of tickets almost doubled from that of last month averaging about three locates a day. The meter readers have started using the new laptop collector for reading meters. It is a very impressive piece of equipment, reading many meters at once. It will take them a few times using it to become efficient at using it. Jeff attended cone-day seminar on using the infared camera. We use this camera to check for overheating of connections in the electrical equipment. 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. Home Energy Audits are still underway and are keeping our staff busy. The Security Systems department had a total of sixty phone contacts, eleven personal visits, eleven systems quoted, four sales made, nine installs completed and twenty-one service calls for the month of January. Power plant staff did the monthly run on the engines. Everything went well. There is a problem with one of the fuel transfer pumps. Staff should have it repaired in time for the February run.