5.3. ERMUSR 06-14-2011Elk River
Municipal Utilities
13069 Orono Parkway • P.O. Box 430 Phone: 763.441.2020
Elk River, MN 55330-0430 Fax: 763.441.8099
UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Wade Lovelette -Technical Services Superintendent
John Dietz -Chair Troy Adams, P.E. -Director of Operations
Daryl Thompson- Vice Chair
Al Nadeau -Trustee
MEETING DATE: AGENDA ITEM NUMBER:
Ma 10, 2011 53
SUBJECT:
Review Annual Power Plant URGE Test Results
BACKGROUND:
Elk River Municipal Utilities operates and maintains four diesel generation units at our power plant.
These units are contracted to Great River Energy (GRE) through a Power Transaction Agreement at the
current price of $2.75/kW/month based upon the proven capacity from the annual Uniform Rating of
Generating Equipment (URGE) test. The current contract expired October 31, 2005 but was extended on
an "evergreen" basis. This allows the contract to extend the termination date on a one year incremental
basis unless notice is given by either ERMU or GRE no later than April 151 of that year.
DISCUSSION:
The 2011 URGE test went well and will result in $352,968 compensation from GRE over the next year.
This is an increase of $528 from the 2010 URGE test. Over the years, the results have steadily increased.
Looking back over the past few years:
2005 = 10,456 kW
2006 = 10,488 kW
2007 = 10,576 kW
2008 = 10,600 kW
2009 = 10,656 kW
2010 = 10,680 kW
2011 = 10,696 kW
This trend is directly related to a high priority on maintenance, training, and staff familiarity with the
plant. ERMU staff has done an excellent job maintaining these aging engines. This effort is evident in
the test results. Steve Ziemer-Plant Operator/Mechanio, Michael Price-Lead Electrical Technician,
and Adam Freiberg -Electrical Technician have once again done an excellent job!
ACTION REQUESTED:
No action required.