4.2. ERMUSR 06-14-2011Elk River ---~
Municipal Utilities
13069 Orono Parkway • P.O. Box 430
L~lk River, MN 5 5 3 30-043 0
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
Daryl Thompson, Vice Chair
Al Nadeau, Trustee
MEETING DATE: AGENDA ITEM NUMBER:
June 14, 2011 4.2
SUBJECT:
Power Su 1 Options /Resource Plannin Update
BACKGROUND:
In September 2008, Connexus Energy terminated the 10-year rolling "all requirements" power contract
with Elk River Municipal Utilities. In April 2010, 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. In May 2011, the Utilities Commission authorized
entering into "Phase 2b" of the resource planning study which will include risk assessment of the
proposals.
DISCUSSION:
The list of bidders has been shortened and CMMPA is looking to schedule a presentation with the
participant's power planning committees soon. A presentation will be made to the Commission at a later
date.
Concurrently, staff has been meeting with Connexus and Great River Energy (GRE) on power contract
renewal options. As previously discussed with the Commission, the power contract renewal bid proposed
by Connexus and/or GRE will be compared with the results from the RFP process. This comparison will
be conducted by a third party, R. W. Beck. On June 9`h ERMU, Connexus, GRE, and R. W. Beck held a
meeting to discuss methods for comparison. The key to this bid may hinge on ERMU's position on
territory acquisition.
ACTION REQUESTED:
No action required.