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ERMUSR HANDOUT #1 06-12-2012BARFARWAAWFAIFIA41PAId frifrisfAftl Minnesota Municipal Utilities Association YEAR IN REVIEW 2011 f f 1 Dear MMUA Members — Welcome to our 2011 Year in Review. In the midst of execut- ing for today and planning for tomorrow, it's good to take a little time to look back and review the events and activities that brought us to where we are today. 2011 was an action - packed year for MMUA. I hope you enjoy this opportunity to review it with us. To begin with, I'll highlight one milestone. The MMUA Board of Directors refreshed and refined our mission statement, which now reads: "To unify and serve as a common voice for municipal utilities, and to provide them with the support they need to provide quality service to their customers and community." I think the mission statement does a very good job of cap- turing what we're all about. Government Relations ..............................3 State Government Relations ...............3 Federal Government Relations ........... 4 Research and Analysis ........................6 Member Communication .....................7 We're your voice at the Legislature, with our Congressional delegation, with the Department of Energy Resources and other state agencies, with EPA and other federal agenci We take that role very seriously and we try to represe your interests as effectively as we can. If there is anything you think we should be communicating on your behalf, please let us know. It's also our role to provide you with the support you need to get the job done. Whether it's an existing program or an area where we're not currently providing assistance, we want to be there for you. If you need help, let us know. We'll do our best to get you the help you need. Have a great year. Jack Kegel MMUA Executive Director Engineering and Policy Analysis ..............8 Safety & Training ........ ..............................9 Meetings and Workshops .....................13 Communications and Publications ......14 ' Other Activities ......... .............................15 61 ** . l d i Attendees of the MMUA 2011 Overhead School posted for a group photo at the MMUA Training Center in Marshall. 2 - 2011 Year in Review Government Relations MMUA's Government Relations Division represents the V erests of municipal utilities before state and federal vernment entities. The Division is made up of the Gov- ernment Relations Director, Greg Oxley, and the Senior Government Relations Representative, Bill Black. We have two excellent outside consultants who assist them in this work —Doug Carnival, McGrann -Shea law firm, on the state level and Michael Nolan, MJN Consulting, on the federal level. Government Relations efforts in 2011 can be broken out into four major areas: • State Government Relations • Federal Government Relations • Research & Analysis • Member Communications State Government Relations State Legislative Activities. MMUA staff reviewed 1761 House bills and 1477 Senate bills that were introduced dur- ing the tumultuous 2011 Legislative Session, checking for 46rovisions that would impact municipal utilities. Several re- ired specific action. Private water well drilling regulation by cities. MMUA played a significant role in stopping a coalition of well drilling contractors from passing legislation to bar munici- palities from regulating private wells within their own city limits. The successful all -out effort by MMUA membership showed how an effective lobbying organization can thwart a runaway bad idea. MMUA secured the testimony from staff of Elk River and Rochester, Coordinated activities with the League of Minnesota Cities (LMC), and held meetings with several key legislators from both houses. This issue could be back in the 2012 session, so MMUA has secured the help of at least three more cities to testify on the legislation. Manufactured home parks wa- ter sub - metering. Manufactured home park owners almost suc- ceeded in limiting what pub- swater suppliers can charge ome parks for water and sewer services, but MMUA helped stop them. While the ultimate bill met municipal concerns, it was eventually vetoed. RES impact reporting. A new law, promoted by the Min- nesota Chamber, requires utilities to report the impact on their rates from the state's renewable energy standard. Dur- ing consideration of this legislation, MMUA worked with the Chamber and the Joint Action Agencies to ensure that the language was not too intrusive. CIP plans below 1% for coopera- tives and munici- pals. Legislation that would have I Ll eased various re- - porting require- ments of Conserva- tion Improvement,.> Programs (CIP) for municipals and cooperatives received several Rochester Public Utilities General legislative hear- Manager Larry Koshire, right, used the ings during 2011. MMUA Winter Legislative Conference MMUA voiced sup- to visit with Rep. Greg Davids, chair of port for putting the House Taxes Committee. all energy sources back on Minnesota's table and for more effort on the state's part to make the Conservation Improvement Program more workable for utilities. MMUA provided testimony by Bob Jagusch and held meetings with Chairs of the Senate and House Energy Committees and Director of the Department of Energy Resources. 3 Y Sen. Bill Ingebrigtsen, surrounded by the assembled MMUA representatives, took cen- ter stage at the 2011 Winter Legislative Conference leadership meetings. Buffalo Utilities Director Joseph Steffel, left, chatted with Bill Grant, who heads up the state's Division of Energy Resources. Other Legislative activities e Wild Rice Rule (sulfate standard) development. MMUA legislative representatives monitored the debate over the very stringent allowances on sulfate effluent designed de- cades ago for the protection of wild rice. Staff is following the study on this issue. e Testimony- overview of Municipal Utility sector. At the be- ginning of the session MMUA legislative representative Bill Black and SMMPA staff member Larry Johnston provided the Senate Energy Committee with an overview of the mu- nicipal electric utility sector. e Networking. MMUA maintains close contact throughout the year with a variety of organizations, including Minne- sota Chamber of Commerce, League of Minnesota Cities, Coalition of Greater Minnesota Cities, Minnesota Environ- mental Science and Economic Review Board (MESERB), Wa- ter Research Foundation, Minnesota State Bar Association's Public Utilities Section, and Environmental Initiative. State Regulatory Activities e Minnesota Public Utilities Commission (MPUC). MMUA staff regularly attends meetings of the MPUC where a great deal of useful information is discussed relating to such is- sues as rate increases, certificates of need for power facili- ties, service territory cases, and integrated resource plans. Items of interest before the Commission in 2011 included Rochester Service Territory, RES Compliance Reporting, RES Impact Reporting, Qualifying Facilities Reporting, and Greenhouse Gas Regulation. In addition to actual commission meetings in St. Paul, MMUA staff has made numerous contacts with Commissioners in a number of other forums, including the National Association of Regulatory Utility Commissioners (NARUC) conference, the Mid- America Regulatory Conference (MARC), the Envi- 4 - 2011 Year in Review ronmental Initiative policy forum, legislative hearings, and social events. e Department of Energy Resources (DER). Staff participate in four Distributed Generation and Net - Metering Wo shops. Staff met with DER Director Bill Grant on numerous occasions. Staff met with John Hrvanko concerning energy assistance payments. e Pollution Control Agency. MMUA staff supported Willmar in its efforts to obtain a biomass permit for its power plant e Municipal Telecom. Staff participated in two municipal broadband task force meetings held by the League of Min- nesota Cities. Federal Government Relations EPA Rules and Regulations. Much of the energy legisla- tive activity in the first session of the 11211 Congress has focused on various rules and regulations coming from the EPA. These rules, which impact power plants and the elec- tric utility industry in several ways, include the ICI Boiler MACT (maximum achievable control technology); Clean Air Transport Rule, recently released as the Cross -State Air Pollution Rule; revisions to ozone standards; New Source Performance Standards rule for greenhouse gases; co combustion residual disposal rule (coal ash); Reciprocal ing Internal Combustion Engines (RICE) rule; and the new Utility or Mercury MACT, a major rulemaking for hazardous air pollutants released in late December. In addition, EPA is proposing revisions to cooling water intake structures un- der section 316(b) of the Clean Water Act. All of these ef- forts affect electric utilities. MMUA has continued to work with the Minnesota congres- sional delegation on these EPA regulations. The delegation is largely sympathetic to the concerns of MMUA and the electric utility industry. The EPA "train wreck" of overlap- ping rules and deadlines was a major focus for the MMUA me a.'se a..a a.e eau ae•a. veeer veu�uuvra, viceeeaa.e, expounded on an issue while Hibbing Public Utilities Com- missioner John Berklich, left, and U.S. Rep. Collin Peterson, right, listened. group at the 2011 APPA Legislative Rally. Sen. Klobuchar was one of the few Democrats to vote for a delay the implementation of the Boiler 16 n ACT. RICE — Reciprocating Internal Com- bustion Engines. The EPA Reciprocat- ing Internal Combustion Engines rule sets onerous new standards for small diesel generators, which are owned and operated by many MMUA mem- bers and other members of the pub- lic power community. This new rule would have an adverse impact on several smaller communities. MMUA Washington Representative Michael Nolan, at podium, briefs the MMUA t1 t . t C I t' • Cooperation with APPA. MMUA has con ngen prior o worked closely with both APPA and EPA on this issue, including participation in an EPA hearing and hiring outside counsel to assist in drafting extensive comments on the proposed rule. e Letters from the Minnesota Delegation. MMUA worked closely with Sen. Klobuchar's office to secure a letter sent to EPA that voiced our concerns over the rulemaking. Key Min- nesota Representatives Collin Peterson and Tim Walz sent Wilar letters to the EPA following efforts by MMUA. Captive Rail. With the GOP takeover of the new 112th Con- gress, and slimmer margins for the Democrats in the Senate, chances of passing legislation to repeal the antitrust exemp- tion for the rail industry and reform the Surface Transporta- tion Board remain slim. However, efforts this year to stay on track, supported by MMUA, APPA, and a coalition of inter- ested stakeholders, have led to positive movement on the captive rail issue. Local problems with BNSF purchase. At the APPA Rally and in other venues, MMUA has urged STB review of the acquisition premium paid during the purchase of Burlington Northern Santa Fe Railroad (BNSF). e Sen. Franken presented testimony at the recent STB rail customer hearing on behalf of captive customers and led two Senate letters to the STB voicing concerns over the BNSF issue; Sen. Klobuchar signed onto both letters. Dodd -Frank /CFTC. In 2010, Congress passed the mas- sive and controversial financial regulatory reform bill, now &own for its two main authors, Sen. Dodd and Rep. Frank. ce then Congress has been overseeing the law's imple- mentation at several key regulatory agencies, including the Commodity Futures Trading Commission, SEC, and FERC. our ongressiona mee � .5— Dodd -Frank could have a huge impact on the electric util- ity industry in several areas, including over - the - counter de- rivatives, new margin requirements for swaps, definition! of financial advisors, and possible new regulatory authority over public power entities. e MMUA filed comments with the SEC seeking to overturn a provision in the proposed rules that would have required ar appointed commissioner serving on a municipal utility gov- erning body to register with the SEC as a financial advisor. e Expressions of concern. MMUA, working with APPA and APGA, has continued to work with key members of the MN congressional delegation, including Rep. Peterson, to ex- press concerns with the new law. PMAs. Recent threats to the DOE's Power Marketing Ad- ministration (PMA) program originated with the Simpson - Bowles presidential commission on the deficit, which would cause PMAs to lose their cost -based operating status and perhaps move to market -based rates. This move would have major economic and political consequences for cus- tomers of the Western Area Power Administration (WAPA). MMUA works to defend PMAs. As Senate leaders dis- cussed utilizing the PMA program for deficit reduction pur- poses, MMUA worked with Sen. Klobuchar's office to re- inforce the importance of WAPA and the PMAs to Senate budget leaders. 2011 Year in Review - E MMUA Government Relations Director Greg Oxley, left, chat- ted with Brainerd's Gregg Kropp at the Brainerd wastewater treatment facility open house. Research & Analysis Thoroughly- researched information on significant issues is becoming increasingly important to policymakers. In 2011 Government Relations staff intensified their research ef- forts by completing several studies. Payment in Lieu of Tax. This annual survey regularly shows that municipal electric utilities provide on average about six percent of their revenue to their cities, thus demonstrating one aspect of the value they provide to their communities. Rate Comparison. After an extensive effort to collect rate information from the Department of Energy, MMUA can now provide data and charts comparing rates between any electric utilities in the state going back as far as 1989. Compensation Study. Government Relations staff is helping to draw attention to the problem of attracting experienced utility managers by securing information about executive compensation paid by Minnesota electric cooperatives. Water and Wastewater Treatment Facility Cost Study. Dur- ing the past year, Government Relations staff has continued to survey members to gauge recent trends in the cost of wastewater treatment plant construction and the level of federal and state support for these projects. Service Territory. In the appellate court case City of Moor- head vs. Red River Valley Cooperative Power Association, Government Relations staff assembled information for the drafting of an amicus curiae ('friend of the court') brief on behalf of MMUA, MRES and the Coalition of Greater Minne- sota Cities after both parties appealed the lower court rul- 6 - 2011 Year in Review ing. The municipal partnership's brief detailed the historical attempts by cooperative interests to misuse compensation calculations when municipal utility service territories have grown with expanding city boundaries. , Municipal Utility History. Policymakers and municipal util- ity members expect MMUA to have information on hand concerning certain historic activities of municipal utilities and their impact on Minnesota. Government Relations staff spent considerable time shoring up the organizational knowledge in certain areas including municipal electric util- ity buy -outs and support provided by neighboring municipal utilities to co -ops during the co -ops' formative years. Member Communication Throughout 2011, Government Relations staff maintained contact with members, talking with them about their needs, answering their questions, informing them of gov- ernment activities that might affect their operations and, when necessary, coordinating their activities to change or alter government policies or potential legislation. While many of these communications are informal and incidental, some occur as part of more organized Government Rela- tions activities. Annual MMUA Legislative Conference - St. Paul. Coordi- nated member input and drafted official MMUA legislativ policy statements regarding: conservation improvemer� city well regulation, coal and nuclear energy, renewable hydropower, and clean water infrastructure. Arranged for legislative leaders to appear in front of members for policy discussions Annual APPA Legislative Rally - Washington, DC. Coordi- nated member input and drafted official MMUA legislative policy statements regarding: EPA regulations, maintaining cost -based federal power rates, the Berkshire - Hathaway and BNSF railroad merger, RICE, incentives for promoting the use of renewable energy by public power, tax - exempt financing, and municipal utilities' right to grow with their cities. Arranged for congressional delegation members to appear in front of members for policy discussions and coor- dinated speakers and their presentations. Coordinated ac- commodations and distribution of lobbying materials Government Relations Committee. Government Relations staff continued to organize and support the weekly confer- ence calls of the MMUA Government Relations Committee during the legislative session. Annual Meeting Attendance , • Midwest Consumers Electric Association (December 5 -8, 2011 — Denver, Colorado) t i s n r Rep. Michael Beard, chair of the Transportation Policy and Finance Committee and a member of other committees of inter- est, including the Energy Subcommittee, addressed the group at the MMUA Winter Legislative Conference. • APPA Legal Seminar (November 6 -9, 2011 — Memphis, • Rochester – billing issue Tennessee) Joint Action Agency Annual Meetings • Virginia — IRRRB appointments • Willmar — support on MPCA permit issues Central Minnesota Municipal Power Agency (October 27— Springfield) Tours of Local Facilities • Missouri River Energy Services (May 10 -11 —Sioux Falls) • Northern Municipal Power Agency (May 18 —Thief River Falls) Southern Minnesota Municipal Power Agency (October 13- 14— Bloomington) Information Requests, Information requests fielded by the Government Relations staff in 2011 included: • Austin —facility information from study on construction • Breckenridge — Impact of WAPA on rates • Delano — organizational issues, rates • Elk River — rates, wholesale power issues, compensation • Grove City — rates, utility governance • Grand Rapids — utility organization issues • Hutchinson — compensation s Janesville — rate review • Lake Crystal — rate review 0anesboro — dam repair grant • Owatonna — inquiry on tax exemption • Marshall • Brainerd • Buffalo • Thief River Falls Legal Seminar. In 2011, Bill Black put together the first MMUA Legal Seminar, Dec. 2 at the Crowne Plaza Hotel in Plymouth. Twenty -five attendees from member cities and law firms attended. Presentations included disaster man- agement, property law, employment law, government data and open meetings, utility billing issues and utility finance. Attorneys in attendance earned continuing legal education credits approved by the Minnesota State Bar Association. _o House Taxes Committee Chair Greg Davids, seated at right, visited with constituents Deb and Stu Smith of Spring Valley. Pictured in the background are Bill Wroolie (standing) and Lee Klein. 2011 Year in Review - 7 Legislative Report. Government Relations staff published the 2011 MMUA Legislative Report, an account of the legis- lation that staff followed throughout the legislative session and the resulting changes in state law. Amicus Brief. Government Relations staff supported the ef- fort to provide information for an "amicus brief" involving an appeal of an eminent domain decision concerning a ser- vice territory dispute between the City of Moorhead and Red River Valley Cooperative Power Association. Video Project. In 2011, Government Relations staff spent a considerable amount of time helping to produce a video showcasing the contributions of local municipal utilities to their individual communities. This effort included selecting and researching topics, coordinating interviews, making recommendations and reviewing video footage. Engineering and Policy Analysis Job Title. One change that occurred in 2011 is that Bob Jag - usch's job title was changed from Director of Energy Services to Director of Engineering and Policy Analysis. The change was made to more accurately reflect the scope of Bob's du- ties, and was not intended to indicate a reduced emphasis on Conservation Improvement Program issues. Bob remains fully engaged in that area and continues to work with mem- bers who need assistance. RICE — Reciprocating Internal Combustion Engines. 2011 started off at a full sprint with our efforts on the Reciprocat- ing Internal Combustion Engine (RICE) rule. MMUA present- MMUA's Bob Jagusch discussed an Issue with Leo Steidel, CEO of Energy Platforms, in an informal meeting at the 8 - 2011 Year in Review The impact of federal rules on these typical municipal gen- eration units occupied much MMUA staff time in 2011. ed comments at a hearing at EPA Air Quality Headquarters in January, followed by submission of extensive technical com- ments to the EPA in early February. The RICE rule has been an ongoing evolution all year. The expected (promised) date of publication of the Final Rule has changed as each date has been missed by the EPA. In June, MMUA worked with APPA on a short timeline (3 days) technical solution to an EPA roadblock dealing with distribution system voltage con- trol issues. In October, a letter from the EPA to the National Rural Electric Cooperative Association opened up new ques- tions as to the direction the EPA was heading with the rule in regard to small emergency engines and peak shaving. In December, the EPA settled a law suit with EnerNoc that m� provide some relief on the number of hours available f emergency run times. We are keeping close to this issue and hopefully will have a final answer in 2012. Congressional Relations. MMUA also met with Senators Klobuchar and Franken throughout the year. In January, the meeting with Sen. Klobuchar was focused on develop- ing partnerships with the University of Minnesota on En- ergy Research and Development. In March, we were invited to meet with Sen. Franken, who is a member of the Sen- ate Energy Committee, to discuss and provide input into a proposed bill to develop a Clean Energy Standard. No bill has been forthcoming as yet, but we are staying vigilant. In October MMUA met again with Sen. Franken, this time dis- cussing how to move energy conservation forward as a job development strategy. He was excited to learn about the ef- forts the municipal utilities have undertaken. Griffin Project. The Griffin Project, an energy conserva- tion project that brings together the efforts of MMUA, the State Chamber of Commerce Energy Smart division, and the Clean Energy Resource Teams (CERTs) at the University of Minnesota has had a successful year. The efforts in E4 resulted in over $30,000 in rebates to local businesses. Hibbing, we had to turn some businesses away (due to the large size of the facility, i.e. hospital and college campus) and the volume of applicants for energy audits was much more than expected. We also completed a series of audits in North St. Paul. 4P Program. Last session saw considerable discussion out potential changes in the CIP program. The co -ops pursued a bill to roll back some of the requirements, but offered no data to support the proposal, which was strongly opposed by environmental groups and the state regulatory authority, the Division of Energy Resources (DER). MMUA testified in multiple Senate and House committee hearings regarding our concerns about the program and potential changes. MMUA has continued to work with DER about po- tential modifications to the program. Department of Energy Resources. The relationship we have developed with DER was evident by the appreciation we re- ceived from Commissioner Grant in legislative hearings and at the Winter Meeting when he thanked MMUA for our ef- forts in working with his office. MMUA and DER have kept up the relationship with MMUA serving on DER's Advisory Board reviewing Low Income /Multiple Resident conserva- tion programs and a separate engineering review of the Deemed Savings Database for generic energy conservation efforts. MMUA is also working with DER on the changes to the CIP reporting procedures to ensure we can use the soft- ware. We were also included in the review of the distribut- ed generation law in the fall and are paying close attention • any possible changes to the law from that process. EPA Rulings. We provided research and analysis to APPA on all of the proposed EPA rulings during the year, including: power plant water intake and discharge, RICE, coal ash han- dling, ozone, two different boiler particulate rulings, green- house gas, and mercury. MMUA drafted the APPA resolution on the Electric Generating Unit Maximum Available Control Technology EPA ruling that was submitted and approved by APPA at the national meeting in June. Smart Grid Grant. Efforts to forge relationships with others helped promote MMUA as a research and development or- ganization leading the way into the future of energy manage- ment. A yearlong effort resulted in MMUA being awarded a grant in December from the DER to develop and evaluate subsets of the universal "Smart Grid" in four MMUA mem- ber communities. These projects will be ongoing into 2014. Work With Members and Potential Partners. Many meet- ings were spent analyzing and developing partnerships and programsfor municipal utilities to advance energy conserva- tion, renewable energy, distribution system, and generation a -1 sects. We also met with financial organizations to assist ities and their customer businesses find the resources to develop projects. We worked with and /or visited a number of member utilities to provide advice and technical support. MMUA's Bruce Westergaard, left, discussed an upcoming element of the 2011 Underground School with Sauk Cen- tre's John Egan. Safety and Training Over the past sixteen years, MMUA's safety and training program has evolved under the leadership of Safety and Training Director Mike Willetts from modest beginnings into a comprehensive and highly respected program that is viewed as a national leader among municipal organizations. Safety Management Program. MMUA's Safety Manage- ment Program offers a consistent and comprehensive safety program for all city departments. The program em- Two students trained under the watchful eye of an instructor at the 2011 Underground School. 2011 Year in Review - 9 A scene from the 2011 Overhead School at the MMUA Training Center in Marshall, showing a slice of activities underway. •� - mot, ... � .� ,. •. # ,. - .a• __,� -wig � .. A recent aerial view of the MMUA Training Center. phasizes the development of a safety culture and includes monthly employee training, development of a functioning and effective safety committee, safety audits /mock OSHA inspections, accident investigation, safety grant application mentorship, standardized recordkeeping system, custom- ized safety manual system, on call 24/7 for any and all safety services, and many more services. MMUA's Regional Coor- dinator becomes an integral part of the city's safety team. In spite of a struggling economy with deep cuts to state aid for cities, the MMUA Safety Management Program remains steady and consistent with little change in enrollment. We believe that's a strong tribute to the quality of the program and the key role that the program plays in the communities we serve. bunk system designed to house the power poles to be used for training purposes. We also make changes to the infra- structure at each training program we hold during the ye4 so the training center landscape continues to change. In 2011 classes continued to be very popular and well at- tended, even with the struggling economy. The evaluations from the attendees have been very positive and supportive of the programs and the quality of instruction. On -site On- demand - four year apprentice lineworker ca- reer development program. One of the challenges that municipal electric utilities face is recruiting, training, and t Training Center. Last year with the help of a line crew from n Sauk Centre Public Utilities we installed a new pole storage Students at the Overhead School received hands -on training. 10 - 2011 Year in Review 4 Wd MMUA's Vernell Roberts was the victim of a mock electrical accident at the the Overhead School, but the medical evacu- ation helicopter and flight were as real as could be. retaining qualified lineworkers. MMUA has developed a cost - effective and user - friendly program to help our mem- bers develop a raw, first -year apprentice into a fully quali- fied first year journeyman lineworker in four years. nent departments within the municipal electric utility. The program is designed to help both new and established em- ployees become more proficient at their jobs by offering a more advanced and challenging curriculum. MMUA's instructor visits the utility a number of times dur- ing each year of the apprenticeship, to review the appren- Wsdent h ip course work with the student to make sure that the is keeping up with the academics. The instructor also provides the student with hands -on instruction in the technical skills that must be mastered during each phase of the apprenticeship. The program also includes participation in several of MMUA's schools each year. First -year appren- tices receive 300 hours of instruction over the course of the year. Students receive 150 hours of instruction in years two through four of their apprenticeship. Gas circuit rider program. 2011 was a very interesting year with new pipeline regulations presented with an alert no- tice early into the new year. The notice reflected several different issues, including: gas /sewer cross- bores, barricad- ing above ground gas facilities, protecting gas facilities from falling ice and snow. We now have six different cities participating in the On -site On- demand program with a total of 10 students enrolled. Students have reported that the program keeps them mo- tivated and driven during the apprenticeship process and report that it is virtually the only solution to ensure strong, consistent hands -on training during their apprenticeship development. Your MMUA gas circuit rider, Jim Ramnes, worked with the MN Office of Pipeline Safety to establish a more user friend- ly direction to facilitate most of the alert notices presented. The gas circuit rider program has proven to be a very helpful and popular service for the gas utility membership. The pro- gram is wide- ranging and flexible, with the ability to address a variety of needs such as on -site employee training, assist- ing with annual MNOPS inspections, technical operator training along and tracking regulatory changes. Member- ship evaluations of this program have been very positive. Last year Jim tackled many different subjects, including: • OQ Compliance tracking. • Approximately 50 days of on -site operator qualification training. • Visited 29 different cities with MNOPS inspections. • Travelled to every gas member. Job training and safety program. Last year MMUA electric staff finished the development of a new five -year training plan. A few of the topics for 2012 include the second Phase of Digger Derrick & Crane Operation, Underground Cable Degradation, Personal Protective Grounding and APPA safe- manual revisions. Several years ago we refocused the JTS program to place a greater emphasis on technical training to reflect the duties of the lineworker, engineering, metering and other perti- Management services and manager mentorship. This pro- gram remained consistent throughout the year. The mem- bers using the service feel it is a great asset to their future utility operation success. League of Minnesota Cities insurance Trust Regional Safe- ty Group Program. The LMCIT Regional Safety Group pro- gram grew by 2 new RSG's in 2011, for a total of 20 groups. it looks like a couple more will be coming on line in 2012. This is a scene from the City of Tyler, where MMUA coordi- nated mutual aid following a 2011 tornado. 2011 Year in Review -11 MMUA's Jeff Becthold has played a key role in development of the LMCIT /MMUA Generation operations and mainte- nance project. The RSG groupings are a flexible way for small members of the LMCIT workers compensation program to meet state and federal OSHA mandates under the guidance of MMUA staff. MMUA helps the small cities establish a working safe- ty committee and delivers appropriate generalized safety training to the group throughout the year. LMCIT /MMUA Generation operations & maintenance prop ect. The LMCIT /MMUA generation operations and mainte- nance program is provided at no cost to municipal electric utility generating plants and provides the utility with an op- portunity to gain a credit on its insurance premium. In 2011 we finished the field work on the pilot project and should have all completed O &M documents delivered to the pilot communities in early 2012. We have several O &M projects planned for the next year and we look forward to working with all of our municipal utility generating plants over the next few years. The O &M asset development process involves amassing all necessary information regarding each critical component of a generating unit. This process provides the operator with a much deeper understanding of the equipment and the op- erating environment, facilitates regular maintenance, and helps ensure safe, reliable operation of your generation fa- cilities for many years to come. 12 - 2011 Year in Review Mutual aid. 2011 was a busy year for MMUA's mutual aid program. In June a series of small twisters and high winds hit Alexandria, Sauk Centre, Anoka, Elk River, Princeton and others. In early July western Minnesota experienced an o slaught of twisters and high winds. Tyler suffered seve� damage from a tornado, losing many homes and city build- ings. Marshall and Redwood Falls were also hit during that storm. Marshall soon got things back up and running, and personnel from Marshall, along with MMUA regional safety coordinators Jim Dolen and Bruce Westergaard raced to help Tyler and Redwood Falls. It took many days of recon- struction for Tyler to get back to a relatively normal level of operations. The process of recovering from the storm re- mains ongoing in Tyler. We never know when disaster will strike, but we do know that it is only a matter of time before the next one occurs. MMUA has gained a tremendous amount of hard -won ex- perience in responding to tornadoes, floods, and ice storms over the years. MMUA staff is prepared to come to your community to assist in the process of rebuilding your facili- ties when disaster strikes. MMUA can organize and oversee the mutual aid effort so that your staff can concentrate on the many tasks that they will need to focus on in a disaster recovery effort. Mutual aid efforts often involve long, grueling days of work. • �t r 3 as taken. " here this photo w -4 L the • ' / school. Locations included 2011 Generation S !scene from t-ngs and Workshops Mee Mn/►UA conducts three major rnember- �p)vr Meedn95 ar ship meetings each ye March 30 ,,ton, Glencoe, w b Jeff Tarbert, APPS itchfield and art series presented Y Public Po`NE included athree -p �'Strategtc Issues Facing a Time ' Senior Vice Present on „Effective Governance in Years, & Challenges to the PU in the Next 10 and „Threats Significant Change odel.1, tic Power Business M —"® conference (Bloom on policy �s- islative Conf meeting focuses p bens Winter `The winter legts ►alive itol rally. Mein April 1)• our annual state cap their individual and includes well as also sues leadership as w The meeting meet with legislative {the morning. topics. Fea- course o of timely legislators over the on a variety Indicators resentationncluded ,Key PerformancCIP Tracking includes P Ze and Improve. Lo- • tured presentations „ "Analy Going on untcipal Utilities, Legislature for NI „ „Where is the g Efficiency Solutions & Reporting Tools, «1.5% EnergY cal Government Aid ?�� and project Overview. 24), The I August 22membership summer Conference (Breezy our largest MUA Summer Conference �s business meeting• The includes the annual thertng and � half of professional education runi da and a and at opp 4ieetingfeatures a y of awards presentations presentation Featured p a trade show, and and socializing ties for networking Agency General Manag, al Power General Manz Northern Municipal with Glencoe left, visited conference. TveitbaKWI winter Legislative Meyer at the 2011 year ii Technical and Operations Conference (St. Cloud, December 6 – 8). MMUA's newest major meeting is geared toward managers, superintendents, crew leaders, and others who are responsible for the daily operation of municipal util- ity systems. Last year's meeting featured presentations on "Communication Secrets of an Effective Leader;' "Change: Are You Surviving or Thriving ? ", and a moving presentation by Eddie and Lisa Black on "Accidents and Your Family." Schools and Workshops. As usual, MMUA presented a va- riety of schools and workshops over the course of the year. Schools presented at the MMUA Training Center feature hands -on technical task training with a strong emphasis on safe and efficient work practices. The following four schools were co- sponsored with the American Public Power Asso- ciation and the Minnesota Rural Electric Association. Overhead School. We had 47 students from municipal utilities and 9 students from MREA attend the Overhead School. The most recent addition to the overhead and un- derground school is the journeymen leadership class. This class is designed to challenge the veteran lineworker with an enhanced curriculum to further develop leadership and technical skills. Underground School. This school had 40 students from mu- nicipal utilities and 11 students from MREA in 2011. See note above. Transformer School, including a pre- conference workshop on Basic Single -Phase Transformer Connection and Theory. This workshop is considered one of the best in the country. The program offers plenty of hands -on instruction with one of the finest instructors in the industry, Scott Mieneke. We had 15 students attend the pre- conference and 31 students attend the school. Meter School, including a pre- conference workshop on Ba- sic Metering. MMUA has developed extensive meter train- ing facilities at the training center, and this workshop is con- sidered among the best. The program provides challenging instruction for all levels of experience. In 2011 we had 26 students attend the pre- conference and 52 students attend the school. Additional MMUA Schools. Substation School. This year's school emphasized substation operations and maintenance. The school was presented at two locations, Shakopee, MN and Brookings, SD. A total of 63 students were trained. Locating School. We had 30 students attend at this work- shop in 2011. 14 - 2011 Year in Review Competent Person Workshop. This workshop was paired up with the Locating School. There were 24 students trained. Generation School. MMUA brought back the Generatio School in 2011. Hands -on training was conducted at tl� power plants in Glencoe and Litchfield. A total of 48 stu- dents attended this school. Firstline Supervision. In 2011 we had five students gradu- ate from the FirstLine Supervision program and 19 new students. This program is designed to provide the first line supervisor with leadership skills needed in today's competi- tive market. Legal Seminar. MMUA developed a first-of- its - kind- in -Min- nesota legal seminar designed to aid attorneys with munici- pal clients. For our first time offering this seminar, we had 25 attendees. MMUA Regional Workshops. Electrical Accidents —The Straight Talk. Presented by Larry Botten (New Ulm), Russ Good (North Branch), Jeff Bertram (Owatonna) and Mike Willetts. We had a total of 108 stu- dents attend the sessions held in Alexandria, Elk River, Owa- tonna, Marshall, and Thief River Falls. Spill Prevention Control &Countermeasures. Presented b Bruce Bousu. This regional workshop was presented in B4 falo, Owatonna and Alexandria with a total of 37 students. Communications and Publications Communicating with our membership and the general pub- lic is one of the fundamental reasons for MMUA's existence. MMUA Associate Executive Director Steve Downer plays a central role in fulfilling this function. Over the course of the year MMUA researched and an- swered numerous questions in regards to operation of mu- nicipal utilities. At times, the answer was gained through posting an online survey on the MMUA website. As is the case every year, MMUA produced a number of information publications in 2011, including 11 monthly Re- source newsletters for MMUA members in 2010, 35 Con- nector newsletters for members to send to their customer as well as 14 Capitol Tattler electronic legislative updates. MMUA also produced the 2011 MMUA Directory, position statement booklets for the APPA Washington Rally and the MMUA Winter Legislative Conference, and the MMUA Leg- . slative Directory. Publications staff also contributed to the nual Legislative Report, and produced materials related to MMUA's training programs and meetings, including a meetings /training calendar. Advertising for MMUA publica- tions was solicited and administered. An MMUA brochure was refined and a new general brochure on municipal utili- ties was produced, as well as various maps and PowerPoint presentations. Downer played a number of other roles, including: • Presentations before city councils, utilities commissions, community colleges, etc., on a variety of topics relating to municipal utilities and their operation. • Maintained the MMUA website (along with Charles An- derson). Conducted 15 on -line surveys to gather information for members. • Administered committees, the MMUA Tom Bovitz Memo- rial Scholarship Award and the MMUA Drug and Alcohol Testing Consortium. Omonitored and influenced low- income and telecom issues while serving as chair of the Salvation Army HeatShare Ad- visory Board and as a member of the Blandin Foundation's Broadband Strategy Board. �l Other Activities Finance Program. For a number of years MMUA has operated a finance pro- gram to assist members in financing local projects. Because all existing funds had been committed, and the current state of the public finance market is not conducive to pool bond finance programs, MMUA conducted an RFP process to identify a financial institution to provide a new, direct loan version of the finance program. U.S. Bank was selected as provider for the new program, which is now fully operational. If you are interested in ex- ploring another option for project finance, contact Bob 1a- gusch at MMUA. Surveys. Like any business, a municipal utility needs to know how it stacks up against its peers. Survey data is one of the best ways to obtain this important business intelligence. MMUA conducts a variety of surveys on a regular basis and distrib- utes the results to the membership. In 2011 MMUA's Rita Kelly conducted the annual salary and benefits survey. Listening Sessions. In 2011 MMUA conducted a number of listening sessions with members. Most were held in conjunction with safety management and gas circuit rider meetings. We found these sessions very valuable and received a lot of good feedback and suggestions, both in the meetings and in the questionnaires returned by session participants. ofessional videographers from StoryTeller shot some footage for a video on Irnicipal utilities at the Lanesboro dam. Video Project. In 2001 MMUA began development of a video highlighting the value and benefits of a municipal utility. The project is nearing completion and will be distributed to the membership later this year. Association Software Project. MMUA completed the development of a new, more robust data base and the imple- mentation of new software for accessing and maintaining the database and auto- mating many administrative functions. We began the development of a new web site that will be more user friendly and provide members access to their data. 2011 Year in Review - 15 vG� 2012 Meeting/Training Center Calendar Regional Workshops: 2012 NESC Update January 25 /Thief River Falls January 30 /Baxter January 31 /Marshall February 1 /Owatonna February 2 /Plymouth FirstLine Supervision February 1 -3 Central Lakes College, Brainerd Winter Legislative f Conference February 8 -10 Crowne Plaza Hotel & Suites, Bloomington MMUA /APPA /MREA Metering School Pre - Conference - Basic Metering Feb. 14 -15 MMUA Training Center, Marshall MMUA /APPA /MREA Meter School Feb. 15 -17 MMUA Training Center Vendor Show part of the week's events FirstLine Supervision February 22 -24 M M UA Office APPA Legislative Rally March 12 -14 Washington, D.C. Generation School March 20 -22 Glencoe Light & Power, Litchfield Public Utilities Substation School April 3 -5 Shakopee Locating School April 17 -18 MMUA Training Center, Marshall MMUA /APPA /MREA Underground School May 15 -18 MMUA Training Center, Marshall o d( J { iH 'V r { AA Annual Summer Conference August 20 -22 Cragun's Resort, Brainerd MMUA /APPA /MREA Overhead School September 18 -21 MMUA Training Center, Marshall FirstLine Supervision October 3 -5, Central Lakes College in Brainerd October 24 -26, MMUA Office Technical & Operations Conference December 4 -6 Holiday Inn, St. Cloud s . `0� ' �r MMUA /APPA /MREA Basic Transformer Connections School Dec. 18 -19 MMUA Training Center, Marshall Three Phase Transformer Connections Dec. 19 - 21 MMUA Training Center, Marshall r �' r