4.1. ERMUSR 07-12-2011Elk 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. -Utilities Director
John Dietz -Chair
Daryl Thompson -Vice Chair
Al Nadeau -Trustee
MEETING DATE: AGENDA ITEM NUMBER:
July 12, 2011 4.1
SUBJECT:
Power Su ply Options /Resource Plannin Update
BACKGROUND:
In September 2008, Connexus Energy terminated the ] 0-yeaz rolling "all requirements" power contract
with Elk River Municipal Utilifies. 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:
On July 1 s`, Commissioner Al Nadeau participated in a conference call with CMMPA to go over the
Resource Planning Coalition and RFP process to date. On August 18s', Commissioner Al Nadeau and I
will be attending a presentation of bid results at the CMMPA office in Blue Earth, MN. A presentation to
the Commission is tentatively scheduled for this fall.
Concurrently, ERMU has been working with SAIC / R. W. Beck on developing a scope of work for a
power contract analysis. This analysis would compare the results of the Resource Planning Coalition
RFP and CMMPA recommended portfolio options with the power contract proposal from Connexus and
Great River Energy. if one is completed by the July 11`" Commission meeting a task authorization memo
from SAIC / R. W. Beck that describes the scope of the analysis will be provided for Commission review.