2.6 ERMUSR 06-12-2012 Elk River
Municipal Utilities
13069 Orono Parkway
P.O.Box 430
Elk River,MN 55330
(763)441-2020
UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Troy Adams, P.E. —General Manager
John Dietz—Chair
Daryl Thompson—Vice Chair
Al Nadeau—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
June 12, 2012 2.6
SUBJECT:
Central Minnesota Municipal Power Agency CAPX2020 Project Revenue Bonds Disclosure
Acknowledgement Letter and Exhibit E to Bond Purchase Agreement
BACKGROUND:
In May 2006,the Utilities Commission authorized joining MMTG to explore the potential to obtain
ownership in the transmission system. In February 2007,ERMU entered into an agreement to participate
through Central Minnesota Municipal Power Agency (CMMPA) in the CAPX2020 Brooking-Twin Cities
Transmission Project. This represents ERMU's direction to own instead of rent. This investment
provides revenue to mitigate transmission costs and help to lower ERMU electric rates.
In March 2011,the Utilities Commission and the City Council executed resolutions approving ERMU to
increase their investment in the project with a maximum direct cost of$6,265,278 and a resulting
$7,140,953 in maximum total debt supported.
DISCUSSION:
The initial bonding is being issued. With the bonding there is a requirement to provide information on an
ongoing basis. A Disclosure Acknowledgement Letter has been executed by authorized utilities staff.
Referenced in this letter is Appendix A, the Official Statement for the CMMPA Brookings—Southeast
Twin Cities Transmission Project Revenue Bonds, Series 2012. This document is available for review
upon request. Also executed was an Exhibit E to Bond Purchase Agreement.
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