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4.1.ERMUSR 03-08-2011Elk River Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk River, MN 55330-0430 UTILITIES COMMISSION MEETING Elk River Municipal Utilities Commission John Dietz, Chair Daryl Thompson, Trustee Al Nadeau MEETING DATE: March 8, 2011 Power / Resource U Phone: 763.441.2020 Fax: 763.441.8099 FROM: Troy Adams, P.E. -Director of Operations AGENDA ITEM NUMBER: 4.1 BACKGROUND: In September 2008, Connexus Energy terminated the 10-yeaz rolling "all requirements" power contract with Elk River Municipal Utilities. In Apri12010, the Utilities Commission authorized entering into "Phase 1" of a resource planning study with a coalition which includes Central Minnesota Municipal Power Agency (CMMPA) as a participant. In September 2010, the Utilities Commission authorized entering into "Phase 2" of a resource planning study which includes the release of a Request For Proposal (RFP). The RFP was issued on November 15, 2010. DISCUSSION: Bids have been received and are being assessed by CMMPA. An update will be provided at the meeting. There has been discussion with Connexus Energy throughout this process. Connexus is interested in reworking our current contract. There has also been discussion regarding a new territory acquisition agreement with Connexus which may or may not be packaged with a reworked power contract. There will need to be an analysis of the bids compared with any Connexus proposal. ACTION REQUESTED: No action required at this time.