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6.1. ERMUSR 03-13-2013Elk River Municipal Utilities 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: March 19, 2013 6.1 SUBJECT: Staff Updates — General Manager DISCUSSION: The closing date for the property at 1627 Main Street has been set for March 25th. The City has requested bid for some GIS mapping work and the Utilities had included an add alternate for water mapping GIS work. This was a good opportunity for the Utilities to partner with the City to get a better value for our investment. The water department had a budgeted line • item for this mapping work. Contingent upon the City proceeding with the mapping work, the Utilities will contract to have the add alternate work completed. The collaborative fiber optical infrastructure project has been completed, the integration of the field services building to the office computer network has been completed, and the servers at the office and field services buildings have been merged onto a virtual served hosted by the City. This has created opportunities for improving data follow and improving processes. The fiber optical infrastructure agreement with the City has not been completed due to a delay by the County in finalizing the agreement between the City and the County. This past month our staff assisted the City with demoing horns for the railroad road crossing. In order for the City to accurately test the decibel levels from the horns they needed to simulate the actual mounting heights and mounting directions. An electric line crew used a bucket truck to simulate the mounting of the horns at seven planned railroad crossing test locations. The Star News has written an article on the horn testing and Zac Johnson, one of our lineworkers, had his picture in the paper. Utilities staff also assisted the City by performing some infrared camera testing of their switchgear at the Wastewater Treatment Plant. The Utilities purchased the camera a few years ago and have recovered the initial investment over and over again by proactively discovering failing system components. The Wastewater Department had been looking to have this type of work done, but hiring a third party had proven cost prohibitive. The Utilities was able to assist KIR pi Reliable Public Power Provider Page 1 of 2 P 0 V F R E I 01 NATURE P O W E R E D To S E R V E them with this much needed preventive maintenance work at minimal investment of time and no materials or equipment cost. When the Utilities purchased this equipment a few years ago our locator / bore rig operator Jeff Murray had taken on the work associated with performing the infrared camera testing, analyzing the test results, and preparing a comprehensive report. He has done a great job with this added opportunity and deserves recognition for the added valued this has brought to our customers and now also the City. In addition to the formal bidding process for the 69kV substation transformer, I've been working on ordering other components for upgrades to Substations: 69kV breaker and battery bank at north; 69kV circuit switcher, battery bank at Waco. These components have very long lead times and need to be ordered now for us to be able to complete the work this fall. The annual General Manager Performance Evaluation is scheduled for the April Utilities Commission meeting. The evaluation is conducted during a closed meeting pursuant to Minnesota Statute. In the past this evaluation has be conducted as a 360° review soliciting feedback from the direct reports and the Utilities Commission. In addition, the City Administrator has provided feedback. I believe this process has worked well. Unless there is different direction desired by the Commission, I'll distribute the evaluation forms as done in the past. ATTACHMENTS: • Star Tribune article by David Shaffer: "Boulder sees upside if Colorado city breaks from Xcel Energy" — February 22, 2013 • American Public Power Association — Public Power Daily article: `Boulder report finds city could dramatically reduce greenhouse gases, keep rates flat, by forming a city -owned utility" — March 4, 2013 • Star Tribune article by David Shaffer: "Crowd- funding for solar power" — January 12, 2013 • Governing article by Liz Farmer: "Muni Bond Tax Exemption Repeal Could Spike Borrowing Costs by 50 %" — February 28, 2013 • • Rlu P 8 V E R I I I1 • F, Page 2 of 2 NATURij Reliable Reliable PublicF Power Provider P 0 WE a e❑ To S e a v r Boulder sees upside if the Colorado city breaks from Xcel Energy I StarTribune.com Page I of 3 • Log In I Register I My accounts 1 Subscribe Digital -Home delivery I eEdition Search o All content Business listings Search r Site Index StarTribune 1 business ss° %off 66 % Off Welding Classes at Vesper College (Reg. News Local Sports Business Politics Opinion Lifestyle Entertainment obituaries classifieds Autos Housing Jobs Weekly ads Economy Your Money Top Workplaces Blogs r Columns Business Finder Home > Business from the homepage Boulder sees upside if the Colorado city breaks from traf c Tunnel in Minneapolis closed toeastbound Xcel Energy Legislators take on proposal to legalize same -sex marriage Article by: wire services Updated. February 22, 2013 - 9:43 PM State Human Services Dept. criticized over residences But the march toward municipalization could be a long one, with no takeover of the city's electrical distribution system until 2017. 3 comments O resize text O print buy reprints Recommend 11 Twoot 1 E:7�1 By DAVID SHAFFER dshaffer @startribune.com more from business city of Boulder, Colo., says it makes financial Target 4Q hurt by Canada sense to end Xcel Energy Inc.'s electric monopoly is sense nvestment, weak holiday i there and create a municipally owned power Oil gets small boost from company. Us supply report ADVERTISEMENT A city economic analysis, released late Thursday, AP NewsAlert concluded that the city's 45,000 electric most read most emailed most watched customers could pay less "on day one" of municipal ownership compared with the rates Best Buy is laying off 400 at its Richfield charged by Minneapolis -based Xcel. headquarters Cargill: Mississippi River locks and dams need Researchers who examined various financial maintenance badly scenarios found "a very high likelihood" that Target 4Q hurt by Canada investment, weak municipalization would result in lower electric holiday rates even if the city relied increasingly on Schafer: Cuts inevitable in Best Buy turnaround renewable energy and reduced greenhouse gas Minnesota bank performance: 4th quarter 2012 emissions. St. Anthony: $2.2 billion project will overhaul Minnesota's electrical grid "The amazing thing is the impact you can have on decreasing greenhouse gases and increasing Alexander. Using e- mail to send iPad text messages renewable energy," said Heather Bailey, a former utility executive whom the city hired last year as Delta Air Lines adding new Flights to Dickinson, ND., to meet oil boom demand executive director of energy strategy and electric utility development. She headed a team of city officials and outside experts that prepared the report. In November 2011, Boulder voters narrowly passed a measure to replace Xcel when the utility's franchise agreement expires. The measure authorized a switch only if a city power . company could offer rates and service as good as Xcel's. http: / /www.startribune.com /business /I 92624391.html 2/27/2013 Boulder sees upside if the Colorado city breaks from Xcel Energy I StarTribune.com Page 2 of 3 Xcel sought a new, 20 -year franchise with the city and has opposed the switch to municipal ownership. David Eves, CEO of Xcel's operations in Colorado, said Friday that the utility needs to see more details about the city's financial model. "We are going to want to see the assumptions," Eves said in an interview. If Boulder were to make the switch to a publicly owned power company, it would be the largest U.S. city to do so in at least a decade, according to the American Public Power Association. Boulder has a population of 100,0000. The city's study, which assumes the takeover would occur in 2017, is one of several steps in a process that could end in the city government acquiring Xcel's Boulder electrical distribution system, including poles and wires. The study assumed a takeover cost of $150 million to $405 million. In April, the Boulder City Council is scheduled to vote on whether to keep pushing toward municipalization. Xcel, which uses the most wind power of any U.S. utility, says it's in a position to advance renewable energy goals for Boulder without a municipal takeover. Eves said Xcel has proposed a partnership with the city to advance renewable energy and greenhouse gas reductions. "We are interested in working with them to see what kind of additional flexibility we can offer to meet their needs," he said. Eves criticized Boulder for proposing to include in its municipal system several thousand customers living outside the city. "They are not represented by city officials, and they don't vote in city elections," he said. In the past decade, just 12 U.S. communities have broken away from investor -owned power companies to create new municipal electric utilities, the public power association said. The largest was Winter Park, Fla., with 13,750 customers. Most of the nation's 2,008 municipal power companies were formed early in the 20th century. They serve more than 20 million customers, 14.5 percent, of U.S. power users. David Shaffer • 612 - 673 -7090 Twitter. @ShafferStrib 3 comments Oresizetexto print buyreprints Recommend 11 From Around the Web sponsored links More from Star Tribune Tweet ' 1 2LI17 Service 100% Satisfaction Guaranteed Or your money back! ADVERTISEMENT tb x • ADVERTISEMENT fan gear » Hockey is back) Get your MN Wild gear. Shop Now » my ob rocs » TOP WORK PLACES Nominate your company now » steals �.» C�ti:7 stagy fine i Save I OW! Save 50% off or morel » ADVERTISEMENT • • 2010 VW Tiguan 2012 VW Passat http: / /www.startribune.com /business /192624391.htm1 2/27/2013 Boulder report finds city could dramatically reduce greenhouse gases, keep rates flat, by f... Page 1 of 3 • Public Power Daily Monday, March 04, 2013 Boulder report finds city could dramatically reduce greenhouse gases, keep rates flat, by forming a city -owned utility The city of Boulder, Colo., which wants a lower carbon footprint and more renewable energy, is seriously considering forming a municipal electric utility to get those things. According to a Feb. 26 report, the effort would likely pay off, both in the near term and over 20 years. The analysis finds that, under at least some of the scenarios studied by city staff, "a local utility could operate effectively with cost savings and flexibility, creating significant advantages" compared to continuing the current arrangement with investor -owned Xcel Energy. The report goes farther, saying that Boulder could cut its greenhouse gas emissions by 50 percent and could procure half of its energy from renewable sources. "The opportunity exists for Boulder to transition to a new sustainable, low - carbon emission society, and it is coming much faster than anyone had anticipated just a few years ago," the city said. "The growing differential between the rising costs of fossil fuels and the declining costs of renewable energy technologies is setting the stage for the emergence of a new economic paradigm for the next century. Boulder is poised to drive this process to tackle climate change, secure energy independence, and grow a sustainable 21st century economy all at the same time." • "This is a really exciting night," said Heather Bailey, executive director of energy strategy and electric utility development, at a three -hour work session and public hearing held by the Boulder City Council on Feb. 26. She cautioned, though, that the February report does not decide the question of whether the city should form a municipal electric utility. That question is for the future, she said. The study does say "yes," however, to the preliminary question of whether Boulder could create a city-owned utility and meet the goals it has set for itself if it decides to go down that path, she said. "We believe the findings demonstrate that a municipal utility could be good for consumers, good for Boulder businesses and good for our planet," Bailey said. "We look forward to an informed conversation over the next couple of months about how best to proceed." The City Council is scheduled to vote April 16 on whether to continue to pursue municipalization. City leaders have said they also are open to a partnership with Xcel Energy to reach their clean energy goals. The 38 -page report, Boulder's Energy Future Municipalization Exploration, which runs to 287 pages including all attachments, is posted on the city's website, under "Boulder's Energy Future." The city has taken a slow, methodical approach to its quest for a greener energy supply. In November 2011, residents of Boulder approved two ballot measures on the city's energy future. One of those ballot questions authorized the city to explore the possibility of purchasing Xcel Energy's distribution system and forming a municipal utility, providing that customer rates would be no higher than the rates Xcel Energy is charging at the time of acquisition. The other ballot provided the funding • necessary to determine the actual costs of buying Xcel's system and starting a local utility. (See the Nov. 3, 2011 Public Power Daily.) http: / /www.naylometwork.com/ app -ppd /articles /print- V2.asp ?aid= 208951 3/6/2013 Boulder report finds city could dramatically reduce greenhouse gases, keep rates flat, by £.. Page 2 of 3 The November 2011 ballot measures set limiting requirements in the city charter that must be met • before City Council could proceed. These included provisions related to rates, revenue sufficiency and reliability, as well as plans to reduce greenhouse gas emissions and increase renewable sources of energy. A summer 2011 telephone survey found that Boulder voters supported creation of a city-owned electric utility by a wide margin and that residents overwhelmingly wanted a reduction in carbon emissions. Seventy -one percent of survey respondents said they supported municipalization and said they thought the city would be better than Xcel Energy at offering renewable sources of energy and at reducing carbon emissions. In its latest study, city staff looked at six different scenarios: 1. A baseline option that keeps Xcel as the city's supplier, using current rates; 2. A phased -in approach to municipal power, using a five -year purchased power agreement with Xcel, then allowing the city to enter agreements with other suppliers; 3. A low -cost option that would have 25 percent of the mix be coal -fired power in 2017; 4. A second low -cost generation option that excludes coal; 5. A low - greenhouse -gas option based on power supply purchases; and 6. A low- greenhouse -gas option that would include investment in local energy - efficiency efforts. One of the surprising findings is that in four of the six scenarios, the city is projected to exceed the greenhouse gas reduction goals set by the Kyoto treaty, said Jonathan Koehn, regional sustainability coordinator. A fifth scenario met and exceeded the Kyoto goals in year five, he told the Feb. 26 City Council work session. The only scenario that failed to meet the Kyoto greenhouse gas emission goals • was the "status quo" option that assumes that the city keeps Xcel Energy as its supplier (with no change in that company's power supply plans). Even under the low -cost option, "we got a surprising amount of greenhouse gas reduction," said Koehn. "It is astounding to see how much we could reduce emissions." The city said that under some of the options analyzed, a municipal electric utility would meet the charter metrics and have a high likelihood of being able to: • Offer all three major customer classes (residential, commercial and industrial) lower rates than what they would pay Xcel, not just on day one, as required by the city charter, but on average over 20 years; • Maintain or exceed current levels of system reliability and emergency response; • Reduce greenhouse gas emissions by more than 50 percent from current levels and exceed the Kyoto Protocol target in year one; • Obtain 54 percent or more of its electricity from renewable resources; and • Create "a model public electric utility with leading -edge innovations in reliability, energy efficiency, renewable energy, related economic development and customer service." The report also examines the impact that a variety of stranded cost and acquisition cost rulings could have on rates and revenue requirements over 20 years. "Boulderites always have walked their own path," the city says on its website. "Paddled their own • kayak. Marched to the their own music. And they're known for doing it skillfully. Why should it be any different with our electricity supply ?" http: / /www.naylometwork.com/ app -ppd /articles /print- V2.asp ?aid= 208951 3/6/2013 Boulder report finds city could dramatically reduce greenhouse gases, keep rates flat, by L. Page 3 of 3 • While the city said it is committed to exploring ways to achieve what it calls "the electric utility of the future," it has also said there might be ways to do so short of creating its own utility – in the form of a new partnership with Xcel Energy. • • "What we are looking to do is move beyond a 19th century approach to providing energy and create a forward- looking, innovative and consumer - friendly utility model that reduces our reliance on fossil fuels," Bailey said. "Xcel Energy has served us for decades, and in many ways, done an admirable job. It is possible they could help us meet our objectives. We would welcome their involvement in a meaningful, timely and transparent discussion." Even if the City Council votes on April 16 to move forward with the pursuit of municipalization, there will be many steps still to come, "and off -ramps will remain available," the city said in its Feb. 26 report. — JEANNINE ANDERSON Copyright ® 2013, American Public Power Association http: / /www.naylometwork.com/ app -ppd /articles /print- V2.asp ?aid= 208951 3/6/2013 ((A LOT OF PEOPLE ARE CONFOUNDED BY THE IDEA OF INSTALLING • SOLAR ON THE HOME, AND THIS MAKES IT VERY SIMPLE.)) Matt Christian, who with his wife, Amber, invested in community -owned solar panels to power their Maple Grove townhouse Photos by BRUCE BISPING • bbisping @startribune.com Rod Nikula, left, vice president of power supply for Wright - Hennepin Cooperative Electric, and CEO Mark Vogt at the co -op's building in Rockford, Minn. Crowd - funding for solar power • The community -owned solar array planned by a power cooperative northwest of the Twin Cities has sold all of the ownership units and plans to begin construction soon By DAVID SHAFFER • dshaffer@startribunecom So you like the idea of generating power from the sun, but don't want a dozen solar panels bolted to your house's roof? For the first time in Minnesota, an elec- tric power cooperative is offering its custom- ers an alternative — investing in a communi- ty-owned solar -power array, and getting cred- it for the output on their utility bills. 'A lot of people are confounded by the idea of installing solar on the home, and this makes it very simple," said Matt Christian, who with his wife, Amber, purchased 15 solar panels on the array, enough to supply most of the power for their Maple Grove townhouse. The project is a joint effort of Wright - Hennepin Cooperative Electric Association, a utility serving 46,000 customers north- west of the Twin Cities, and Clean Energy Collaborative, a company based in Boulder, Colo., that has built similar projects in Colo- rado and New Mexico. The ground -level solar array, with 171 to- tal panels, will be located behind the utility's headquarters in Rockford, 30 miles northwest of the Twin Cities. Its electricity will go on the power grid but be credited to owners' electric bills. Only Wright - Hennepin customers were eligible. Rod Nikula, vice president of power sup- ply for the co -op, said that all 171 ownership units — one for each panel — had been sold as of this week, raising $148,600. Construction Solar continues on D2 Silent Power will store solar - generated electricity from the Wright - Hennepin array and put it on the grid hours later, using batteries and con- trol panels• like these, which are housed in Rockford, 0 • • Power co -op offers crowd - funding for solar SOLAR FROM D1 should begin in February. It will be the first communi- ty -owned solar array in the na- tion that also features batter- ies to store electricity-for use when the sun is down. For $869, an investor could buy one solar panel and its output. Nikula said 17 custom- ers signed up, purchasing from one to 27 panels each. Christian said he and his wife purchased 15 panels, and he expects it will take 12 or 13 years to pay them off. After that, most of their electricity will be free, he said. "I look at it as prepaying for electricity," said Christian, who considered solar panels atop his townhouse, but the owners' association didn't allow it. Under the terms of the deal, Clean Energy Collective will set up a trust to cover main- tenance and repairs over 50 years. If a solar investor moves out of the Wright - Hennepin service area, his ownership in the array could be sold to an- other co -op customer. Wright - Hennepin CEO Mark Vogt said the co -op intends to build additional solar arrays with the same group financ- ing if customers want them, and that seems likely. A sur- vey of 160 metro -area co -op members by wholesale co- op Great River Energy found that 32 percent of homeown- ers were somewhat or very interested in installing solar power. At least 40 U.S. solar proj- ects have used customer fi- nancing or "crowd - funding" to raise money, said Joy Hughes, founder of the Colorado -based BRUCE BISPING • bbisping @startribune.com This test solar -panel array is at Wright - Hennepin Cooperative Elec- tric, which plans to start building the actual array in February. nonprofit Solar Gardens Insti- tute. Such projects often are called solar gardens. Solar Mosaic, an Oakland, Calif. -based company that re- ceived a $2 million U.S. En- ergy Department grant, last week launched an online ser- vice that lets anyone invest in solar projects across the coun- try, offering traditional returns in dollars. Economies of scale Advocates of community solar say that bigger solar ar- rays benefit from the econo- mies of scale, tax credits and other incentives. Many peo- ple who are interested in so- lar can't install systems be- cause they are renters or their homes have too much shade. Colorado passed a law two years ago to encourage com- munity solar. This year, 13 customer-financed solar ar- rays are underway in parts of that state served by Xcel Ener- gy, based in Minneapolis. Xcel, which is Minnesota's largest power company, has not created a similar program in this state but says it is dis- cussing the idea with legisla- tors and others. Solar investments often have long payback periods that don't attract traditional investors. David Schmidt of Corcoran, who purchased one of the Wright - Hennepin solar pan- els for $869, compared the pur- chase of clean energy to oth- er consumer choices — such as picking a restaurant — that aren't made solely on price. "I try to think of the quality of the electricity, not just the cheapest," he said. Schmidt said he didn't want to invest in a solar array on his family's home, partly because of the expense. He also won- dered about resale. "If I am the next homeowner, maybe I do or maybe I don't want solar," he added. Thomas Sweeney, chief op- erating officer of Clean Ener- gy Collective, said custom- er-financed solar arrays help utilities achieve state renew- able energy goals with little capital. "It also allows them to have a product that customers are asking for," he said. Unlike Xcel in Colorado, Wright - Hennepin is not of- fering a community solar sub- sidy. Yet the project poses a built -in revenue loss for the co -op because solar output displaces electricity on which the utility otherwise would make money. Battery technology by Si- lent Power of Baxter, Minn., will store solar- generated electricity from the Wright - Hennepin array and put it on the grid hours later. Niku- la said the system is likely to be used to release stored pow- er from 5:30 to 7:30 p.m., when sunshine is weak or nonexis- tent, and customer demand soars, especially in the sum- mer. Wright - Hennepin offi- cials believe this "load shift- ing" will save money on peak - price wholesale power, offset- ting the revenue loss from so- lar. The co -op also is an inves- tor in Silent Power. Christian, the Maple Grove homeowner, said the mix of innovative storage technol- ogies and locally made so- lar panels from TenKSolar in Bloomington appealed to him. "It's all bundled up in a nice, easy -to -use package and I don't have to get my hands dirty," he said. David Shaffer • 612 - 673.7090 Twitter: @Shaffer5trib Page 1 of 1 Muni Bond Tax Exemption Repeal Could Spike Borrowing Costs by 50% BY: Liz Farmer I February 28, 2013 Total borrowing costs for cities, counties and states could increase by more than 50 percent if the tax - exempt status of municipal bonds is repealed as part of the ongoing budget talks on Capitol Hill, a new report has found. Interest costs in 2012 alone would have increased by nearly $54 billion to $154 billion if those muni bonds issued had been taxed by the federal government, according to the report, "Protecting Bonds to Save Infrastructure and Jobs," which was released Wednesday and was a joint effort by the National Association of Counties, the National League of Cities and the U.S. Conference of Mayors. Over the past decade, the report said, state and local governments financed over $1.65 trillion of infrastructure investment using tax - exempt bonds. The report comes as state and local officials are stepping up efforts to convince national leaders that the tax - exempt status of municipal bonds is a bigger win for local jobs and the middle class than it is for some of the wealthy individuals who may invest in the bonds. "I don't believe we have made [that argument] tangible to individuals," said Houston City Controller Ronald Green during a press conference following the report's release in Washington, D.C. He added that much of the information about the muni bond debate has revolved around the math: Will Congress fully eliminate the tax - exempt status or include it in an overall 28 percent cap on deductions by wealthy individuals? "All of that means nothing unless you drive it down to who benefits from this," said Green, who is also a member of the NLC. "While you may have people in upper level in tax brackets who invest in those bonds, the people who actually get the jobs from that are those people who live ... in the 19,000 cities we represent." According to the report, 90 percent of muni bond financing over the past decade nationwide went toward schools, hospitals, water infrastructure, sewer facilities, public power utilities, roads and mass transit. Schools received the biggest share, with more than $514 billion in bonds issued. Hospitals came in second with nearly $288 billion in bond financing. If the tax - exempt status of municipal bonds were removed, issuers would have to increase the rate of return on those bonds to still make it worth investors' while. That means it would cost more to borrow the same amount, which municipalities say would lead to less borrowing and fewer infrastructure projects. "If we're building less ... you have fewer construction jobs, you have less economic opportunity," said Mesa, Ariz., Mayor Scott Smith. "This kind of action -- while it appears that it solves Washington's problem -- has a ripple effect that is beyond significance." The tax exemption comes at a cost of about $40 billion annually in lost revenue to the U.S. Treasury, according to some estimates, and for two years Capitol Hill lawmakers on both sides of the aisle have talked about changing that status as part of the national budget and spending debate. Although the bonds were not affected by the January fiscal cliff deal, Smith said the continued budget debate on Capitol Hill has created a "new sense of urgency" as key deadlines approach beginning in March. "We see this as one of the options that's still on the table that hasn't been eliminated [and] I think people are more willing to listen now," Smith said. "I think they talked about it but no one took it seriously.... And we need to let people know, what does it really mean ?" This article was printed from: http: / /www. governing .com /news /state /gov -muni- bond -tax- exemption- repeal - could -spi ke- borrowing- costs- by- 50- percent.html http: / /www.goveming.com/ templates /gov_print_article ?id = 193647361 3/1/2013 • is • 0 • • 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 Theresa Slominski — Finance and Office John Dietz, Chair Manager Daryl Thompson, Vice Chair Allan Nadeau, Trustee MEETING DATE: AGENDA ITEM NUMBER: March 19, 2013 6.1 SUBJECT: Staff U pdates DISCUSSION: We had 1988 credit card payment transactions in February, compared to 1947 in January. The fee for February is $4,473.00. We also had a security system sale in February for a fee of $22.86. The auditors from Abdo, Eick & Meyers were here on Thursday, February 28t ", and Friday, March 1St for the annual audit fieldwork. There were no surprises and it was a successful audit. This reflects all the efficient and dedicated work that all Elk River Municipal Utility employees provide throughout the year, from cash register transactions to inventory counts, and everything in between, that resulted in a successful audit. Special recognition should be extended to Lorrie Franz, Staff Accountant, for all her hard work throughout the year and her contribution to a successful audit. The final audit report is the remaining task and that should be accomplished by April 1" for the auditors to review for presentation at the May commission meeting. '1 Reliable Public Y Power Provider IN'"A", REO B1' P o w F N F) T o S F a v F • 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 Mark Fuchs John Dietz, Chair Line Superintendent Daryl Thompson, Vice Chair Al Nadeau, Trustee MEETING DATE: AGENDA ITEM NUMBER: March 19, 2013 6.1 SUBJECT: Staff Updates [1kTOR"i1w, • Finished rebuilding the single phase overhead line on Viking Blvd. The overhead fiber needs to be attached to the new poles then we will pull out the old poles. • Continue tree trimming. • Had to remove feeder 42 recloser because it was not working properly so we had Utilities Plus Energy Services fix it and then we reinstalled it. • Had 11 new house services. • Continue fixing problems that the infrared camera finds. • Energized the new service at Crossing Church and removed the other transformer and box pad. There is still some work that needs to be done after the frost is gone. • Working on changing out our overhead cutouts and fuses. With this we check padmount transformes and padmount switch gear making sure nothing is leaking, the proper tags are in place, the map book matches the tags, and all the warning stickers are on the outside. p0VIBE0 ®r NATURE Reliable PublicT P O W E R E D To S E R V E Power Provider • Diversified did our annual inspections on the bucket and digger trucks. The inspections include: Visual/ Operational, Magnetic Particle, Dielectric, Load and Acoustic Emission Testing. • • PONEAED 1 • [NATURE] Reliable Public Power Provider P o w E R E D T o S E R V E Elk River ..`,r Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Wade Lovelette — Superintendent of Technical John Dietz, Chair Services Daryl Thompson, Vice Chair Allan Nadeau, Trustee MEETING DATE: AGENDA ITEM NUMBER: March 19, 2013 6.1 SUBJECT: Staff Update DISCUSSION: The Locating department had a total of 72 locate tickets for the month of February; one of them being an emergency ticket, two cancelations, one meet, 50 normal, three updated tickets, 13 non- excavation, one Engineering DSG ticket and one boundary survey. The locating staff also helped with energy audits. • Jeff continues using the infrared camera in the field to see if there are any hot spots on our system that need immediate attention. He found a bad current transformer that needed to be changed because it was heating and failed (see attached report). This caused the customer to be getting free electricity on that leg of the transformer for an undetermined amount of time. The transformer had to be shut down so that the repairs could be made. In February, the Security Systems Department had a total of 85 phone contacts, eight new systems quoted, seven system sales made, seven installs completed, 24 service calls made and eight personal visits. Meter Technicians continue with the meter reading, power bill, substation checks and off -peak issues. They are also involved with the energy audits. They continue to change -out three -phase meters to radio read meters. The power plant staff did the monthly run of the generators. Steve also completes the building safety checks and engine run reports to GRE. Steve is helping the line crews with tree trimming as his time permits. Steve and Jeff attended a Cross - Training school in Marshall. They learned about hazards and what to expect to look for when working with line crews in the field. Their education reports are attached in the education section. • Reliable Public Power Provider P 0 1 E R E 0 8 1 NATURE P 0 WE R E o T o S E R V E IR000602AS2 2.126/2013 11:49:12 AM Main Image Markers Name , Temperature - -.EmisA ,— Background oin t 39.67 0.96 30.2F Hot 66.5-F Cold 30,60F 0,96- 30.20F Average Temperature Lm#qtRqnge Camera Model Lens Description Image Time Calibration Range 1 31)-lkVl ;r I IR000602-IS2 30-2'F 0.96 --- 30,6"F to 66.50F Tit 20mm 6-1-2613-11=49:12 AM -7-6'F to 257.0'F • • • Image Info Background Temperature- Emissivity Average Temperature Lm#qtRqnge Camera Model Lens Description Image Time Calibration Range 1 31)-lkVl ;r I IR000602-IS2 30-2'F 0.96 --- 30,6"F to 66.50F Tit 20mm 6-1-2613-11=49:12 AM -7-6'F to 257.0'F • • • • :7 1�1 IR000603.IS2 2/261201 3 11:50:0 €b W Main Image Markers Name Temperature Emissivity_ Background 6e-nt-erpoint 35AT 0- . 96 30 2T Hot 65. $OF 0.96 30XF Cold 25. 1 OF 0.96 30.2 °F Image Info Visible L F 50 Graph IR000603.IS2 30.21F 0,96 37-01- 25. 1'F to 65.8'F Ti26 20mm 212612013 11:50:09 AM -7.6 °F to 257,0T 4 212612013 1 1 -150:29 AM nfillain Ima Name e Markers fer� eiature Emissivity Background _ C r enter IfIt 42.4"F It )c'j 0.96 30,2°F Hot Hot 60.2 °F 0,96 30.20F T, 6 —Id ( ------ SO--. 2 "F 0.96 Image: Irito Background TernDeralure Calibration Range Visible ht Image F till I8000604IS2 302T 0.96 31.6°F 2$_9 °F to 69.2"F -ri25 20mm 2126120-13 11:50:29 AM -7.6"F to 257-0T 3 • • • Elk River Municipal Utilities 13069 Orono Parkway P.O. Box 430 Elk River, MN 55330 (763) 441 -2020 • C UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission David Berg — Water Superintendent John Dietz, Chair Daryl Thompson, Vice Chair Allan Nadeau, Trustee MEETING DATE: AGENDA ITEM NUMBER: March 19, 2013 16.1 SUBJECT: Staff Update DISCUSSION: The Water department has been busy finishing cleaning the last well filter and has been rebuilding all of the chemical pumps. We have also started painting pressure filters at a well and are replacing chemical lines. The contractor will start prepping the Freeport St. water tower for painting soon so we have been going through and making sure all of the lights and outlets work and that the tower is completely cleaned out before they start their work. I have attached a letter from Jake Mathre, Sales Manager at Conserva Irrigation, complementing our Water and Conservation departments on our passion and commitment to our community. I have also attached a few articles regarding the water drought concern. We will provide more information as it comes. ATTACHMENTS: • Letter from Jake Mathre, Sales Manager at Conserva Irrigation • Star Tribune article by Josephine Marcotty titled "State draining water supplies as nature can't keep up with demand" O Reliable Public Power Provider P 0 V f A f 0 e r NATUREI P o w F R F D T o S F R v F • Star Tribune article by Mark Boswell and Raymond Grumney titled "The Water Cycle Springs a Leak" • Star Tribune news graphic titled "The state of Minnesota's groundwater" • USA Today article by Brian Bason titled "Foes fight the tide of `smart' water meters" • US Drought Monitor map r LM KI IV P 0 1 1 R F 0 8 Y 3 [NATURE] Reliable Public Power Provider POWERED T o S E R V E • • • • From: Jake Mathre Omathre @conservairrigation.com] Sent: Monday, March 11, 2013 11:14 AM To: Hauge, Angela Subject: Conserva Irrigation meeting Angela, I want to thank you again for meeting with Russ and I this morning. The program that you have developed in Elk River stands above all others in the greater metro area and willbe used in our discussions with other municipalities. It is really great to know that there is a community out there that shares the same amount of passion about water conservation as we do at Conserva. Your knowledge of how the process works and the reasons why people should be switching to a more conservative approach was good to hear. If you have any new rebates (ie. soil sensor, rain sensor, extension into residential) included this summer please let us know. Thanks, Jake Mathre Sales Manager Conserva Irrigation O: 763 - 434 -5414 C: 507- 358 -4678 • E: jmathre na,conservairrigation.com W: conservairrigation.com • StarTribune - Print Page StarTribune State draining water supplies as nature can't keep up with demand Article by: Josephine Marcotty Star Tribune February 24, 2013 - 7:33 AM It didn't take Daniel Damm long to figure out why the water from his faucets suddenly turned black. His well was running dry because the turkey farm up the road near Willmar had sucked down the local aquifer. In Hibbing, where one of three city wells has dried up, local officials have quietly asked the state to help resolve a water dispute with a taconite company that is one of the town's biggest employers. And along the shores of White Bear Lake, homeowners found themselves mowing beyond the end of their docks last summer because one of the Twin Cities' premier lakes is shrinking. They file its most precious resource — water. http://www.startribune.coro/printarticle/?id= 192783461 t• �- r�A . Kimmes Bauer Well Drilling of Hastings drilled an irrigation well at a farm east of Blooming Prairie Wednesday morning. The number of irrigated acres in Minnesota has risen with the price of food and commodities. Brian Peterson, Star Tribune d suit, charging the state government with failing to manage Minnesotans have always prided themselves on their more than 10,000 lakes, great rivers and the deep underground reservoirs that supply three - fourths of the state's residents with naturally clean drinking water. But many regions in the state have reached the point where people are using water — and then sending it downstream — faster than the rain and snow can replenish it. Last year, Minnesotans used a record amount of water, fueling a rising number of conflicts from the Iron Range to Pipestone. Now state regulators, who have never said no to a water permit, for the first time are planning to experiment with more stringent rules that will require some local communities to allocate scarce water. "It's scary," said Dennis Healy, who runs the Pipestone Rural Water System in southwest Minnesota. "The time is coming that there is going to have to be some rationing." In the short term, that means farmers and businesses may have to share water with competitors, or even leave the state. Eventually, homeowners may face higher water bills and routine watering bans.The prolonged drought that scorched Minnesota last summer is not to blame, but it provides a glimpse into how climate change, with its weather extremes, could make matters even worse. From now on droughts may be more severe. And then when it rains, it often rains so hard that much of the water runs off the land before it can soak into the ground. In Minnesota, how the rain falls and the snow melts is crucial because virtually all the state's water comes from the sky. Over the centuries, water accumulated below the surface, slowly seeping into the ground and the aquifers that store many billions of gallons between grains of sand and fissures in the rock. Today that groundwater and the aquifers supply most of the homes, ethanol plants, millions of irrigated acres, swimming pools and golf courses across the state. Rising demand It all works fine as long as water is not used faster than the rain and snow can replace it. But now rising demand —from farm irrigation, a growing ethanol industry, a rising population — is pumping more water out of the ground than ever before. And once it leaves the aquifer, it's gone — routed through storm sewers or water treatment plants and into streams, rivers, and sooner or later, out of the state altogether. "We are not running out of water," said Jim Stark, head of the Minnesota office of the U.S. Geological Survey. "But we are depleting it." • 2/26/2013 7:44 AM 1 of � itarTribune - Print Page http:// www. startribune .com/printar,ticle / ?id= 192783461 The most visible example is White Bear Lake.Since 1980, nearby communities have more than doubled the volume of water •they pump from the Prairie du Chien aquifer they share with the lake, primarily because of higher residential demand. Now, the lake drops even during wet periods. Once neighbors use that water — for showers, cooking, watering lawns — it becomes wastewater and is sent to the Pig's Eye treatment plant near St. Paul, where it is cleaned and released into the Mississippi River — short- circuiting the natural system that keeps water in the Iake.The U.S. Geological Survey found recently that it would take annual rainfall that is 4 inches above normal just to keep White Bear Lake where it is now. "We move it downstream," said Stark. "We don't recycle it." Last year the White Bear Lake Restoration Association filed suit against the DNR, alleging that it violated environmental standards by allowing local communities to take more water than is sustainable for the lake and aquifer. It asked the court to establish protected water levels for both. DNR officials declined to comment on the pending complaint. Soon, the problem could spread beyond White Bear Lake. If the Twin Cities metro area grows by half a million people over the next two decades, at current rates of water use, whole sections of the Twin Cities' aquifers will drop by half, even with normal rainfall, hydrologists say. At that point, state regulators would shut down the pumps to protect what's left. Even if water use drops by 30 percent over the next decade, there would still be problems in some parts of the metro area, said Ali Elhassan, water supply manager for the Metropolitan Council. "People plan for the future," he said. "Well, the future is now." The future arrived some time ago in the perennially dry southwest comer of Minnesota, where the geology is not well designed for holding water underground. Healy, of the Pipestone Rural Water System, has had to tell badly needed businesses to find • somewhere else to set up shop because the rural water system couldn't give them enough water — including a large dairy operation that recently took 15 jobs to South Dakota. "In the last year or so we've had a lot more requests from people whose wells are failing," he said. "People are hauling water." The demands of agriculture are especially worrisome, he said. Pattern tiling, which drains precipitation off agricultural fields and into ditches, is on the rise, he said. "While I understand the need and benefit, the idea of discharging that water into the nearest stream and rushing it to the Gulf of Mexico as fast as we can does not makes much sense to me," he said. High- capacity irrigation wells are also sprouting all over central and western Minnesota. In 2010, only 2 to 3 percent of the state's cropland was irrigated, but that alone used 29 percent of water pumped out of Minnesota's ground that year. But in 2012, the state received nearly 200 irrigation permit requests, with another 200 expected this year — two to three times the norm, DNR officials said. Alan Peterson, head of the Minnesota Irrigators Association and a farmer near Clear Lake, said irrigation is a better form of crop insurance than crop insurance. Lately, the number of irrigated acres in Minnesota has risen steadily with the price of food and commodities. Because when prices are at record highs, the hundreds of thousands it costs for an irrigation system pays off. "I can double my yield with irrigation," Peterson said. Increasingly, however, agricultural water use is driving up disputes. In 2007, when Dan Damm complained to the DNR about the neighboring turkey farm, his was one of just a handful of complaints filed with the state. "We turned on the water and couldn't figure out why it was black," he said. But as a heavy- equipment operator, he knew a lot •about the local hydrology, and he figured that the turkey farm had dropped the top of the aquifer below the bottom of his well. The pump was sending up black gunk from the bottom. Once verified, the farm operation paid to replace it, a requirement of state law. "People have to realize, it's humans before turkeys," Damm said. f• ; 2/26/2013 7:44 AM ;tarTribune - Print Page http://www.startribune.com/printarticle/?id= 192783461 Last year, the number of well interference complaints spiked at 12 — most of them related to irrigation — compared to a previous yearly average of two. DNR officials say that greatly underrepresents the problem because people often resolve is themselves, don't file a complaint for fear of creating conflicts, or don't know that they can. The state is also being asked to resolve much bigger problems. This year, the city of Hibbing finally asked the DNR to weigh in on its ongoing dispute with Hibbing Taconite. For years, the company has been draining the water that collects in one of its massive pits in order to get to the ore that's below — and then sending the water into a nearby river and eventually Lake Superior. But a side effect is to lower the area's entire water table; now the level of the aquifer is low enough that one of the city's primary wells has dried up. The other two are running at capacity, said Gary Myers, general manager of the Hibbing Public Utilities Commission. He said the city has found a new water source in a different aquifer, but it's 2'/2 miles away from town, adding considerably to the $1.2 million cost. Now the question is who should pay. "That's an awful lot for us," Healy said. "But it's hard to put pressure on them. " Officials at Hibbing Taconite declined to comment but said in a statement that negotiations are underway. Train wreck? DNR water officials say it's time for local communities to start making decisions on water, rather than the state, because the current rates of use are not sustainable. "If you fail to make a choice, then at some point the aquifer will do that for you," said Jason Moeckel, a water manager for the DNR. This year the DNR will ask one or two water- strapped communities to bring in their biggest water users — cities, farmers, • ethanol plants and others — to negotiate conflicts among themselves. It's never been done in Minnesota, and though many may like the idea of "local control," the reality may be much more contentious, officials say. "Everyone likes [it] until they have to be a bad guy to their neighbor," said Jim Sehl, a DNR water manager. "That's going to be the toughest selling point — getting people to accept responsibility for making those tough decisions." Such choices may come as a shock to to Minnesotans' assumptions about water, said Deborah Swackhamer, co- director of the Water Resources Center at the University of Minnesota. Elsewhere in the country per- capita water use is declining, but not in the Land of 10,000 Lakes. That, she said, could require hard adjustments. Higher prices for water could result, or more water recycling, or the controversial idea of allowing cities to re- inject treated water back into aquifers. And the state may have to start saying no. "Because they can't keep giving out permits and waiting for the train to crash," she said. Josephine Marcotty • 612 - 673 -7394 © 2011 Star Tribune • 2/26/2013 7:44 AN Z of � C� .7 Graphic: A future of water shortages? I StarTribune.com Log In I Register I My account I Subscribe Digital Home delivery I eEdthon Search , Al content Business listings search StarTribune 1 news graphics News Local Sports Business Politics Opinion "Lifestyle Entertainment obituaries classifieds Autos Housing Jobs e News Graphics Graphic: A future of water shortages? Graphic by: MARK BOSWELL and RAYMOND GRUMNEY updated: February 23, 2013 - 10:51 PM Page 1 of 2 At current rates of use the Prairie du Chien - Jordan aquifer, a major source of drinking water for the Twin Cities area, could be partly depleted in some places by the year 2030. Areas shown in red would face 50 percent depletion, the level at which state regulators would impose limits on water use by homeowners and cities. The Metropolitan Council has developed three scenarios of "groundwater drawdown" showing how local aquifers would be depleted under various projections of water use. a Rec n 15 Twee! B inside the StarTribune Rain and snow provide waterthat is stored as groundwater and in deep aquifers. It is used by plants and trees, and lost through evaporation, down rivers and by the slow migration of water underground. Evaporation In urban areas, humans have altered that cycle with hard surfaces like roofs and parking lots, causing more water to rare off. They also use groundwater for homes and industry, which iF them treated and sent dow nstrca m. water &ain tiling - - i corrintercial we& Y Agricultural irrigation uses about a third of all the groundwater in the state, and is growing. Pattern 0 In rural tiling, which removes areas, increased -- surface water from industrial use like ethanol agricultural fields, also production and large livestock slows the replenishment operations are also using more of aquifers. groundwater. httrr// www .startribune.cem /newsgranhics /19253765 Lhtm1 Urban environments Rivets irmpaded af�nolp><oilutlon S(AllC? I)$ (ie::J�t�al }'lI1VlY MARK BOSwF.II +Star Tribunr 2/27/2013 log In I Register I My account I Subscribe delivery I eEd,bon Search Al content Business listings Search Snc Inds . Star%ibune news graphics News Local Sports Business Politics Opinion Lifestyle Entertainment obituaries classifieds Autos Housing Jobs Weekly ads Nome News Graphics Graphic: A future of water shortages? Graphic by: MARK BOSWELL and RAYMOND GRUMNEY Updated: February 23, 2013 - 10:51 PM At current rates of use the Prairie du Chien - Jordan aquifer, a major source of drinking water for the Twin Cities area, could be partly depleted in some places by the year 2030. Areas shown in red would face 50 percent depletion, the level at which state regulators would impose limits on water use by homeowners and cities. The Metropolitan Council has developed three scenarios of "groundwater drawdown" showing how local aquifers would be depleted under various projections of water use. rf, 1 Groundwater P=P -,g continues with na r change f xAt qutm is T ;;¢,: 8 ANOKA scow f } Source watcr Supply punning,. Mrtropohl.m Council l insMe Um $mulle • • • • • Graphic: A future of water shortages? I StarTribune.com Page 1 of 2 I I My accounts I Subscribe Ugtal -Horne delivery I eEdiaon Search -� All content Business listings Search zsr StarTrilbune E news graphics News Local Sports Business Politics Opinion Lifestyle Entertainment Obituaries Classifieds Autos Housing Jobs KOHL'S rlomc News Graphics Graphic: A future of water shortages? Graphic by: MARK BOSWELL and RAYMOND GRUMNEY Updated: February 23, 2013 - 10:51 PM At current rates of use the Prairie du Chien - Jordan aquifer, a major source of drinking water for the Twin Cities area, could be partly depleted in some places by the year 2030. Areas shown in red would face 50 percent depletion, the level at which state regulators would impose limits on water use by homeowners and cities. The Metropolitan Council has developed three scenarios of "groundwater drawdown" showing how local aquifers would be depleted under various projections of water use. D Hecumrne:`. 15 Fwcri 8 inside the StarTribune e y .V! AN0" 30% re4uchan 9 in tuturc .~ ; 9PML tdmter our Pumping r 1 RAN�SiY Mp+f i st P*41 - '" scarr s r 1 DAIWM , hta .• / / {A {{ /{A! ctor-tril„rna ­nm /nawracrrnnhinc /197i'17A51 html 2/27/2013 Graphic: A future of water shortages? I StarTribune.com Page 1 of 2 I I My account I Subscribe I Search All content Business listings Search�� a StarTrbnne news graphics y Views Local SPOrts Business Politics Ogialion Lifestyle Entertainment obituaries classifieds Autos Housing Jobs ^ _t_ , News Graphics Graphic: A future of water shortages? Graphic by: MARK BOSWELL and RAYMOND GRUMNEY Updated: February 23, 2013 - 10:51 PM At current rates of use the Prairie du Chien - Jordan aquifer, a major source of drinking water for the Twin Cities area, could be partly depleted in some places by the year 2030. Areas shown in red would face 50 percent depletion, the level at which state regulators would impose limits on water use by homeowners and cities. The Metropolitan Council has developed three scenarios of "groundwater drawdown" showing how local aquifers would be depleted under various projections of water use. 15 T—i 8 0 now inside the StarTribune 3 "0" 8101E wd13lblm in future +' + w4m groundwater pumping p IIENNEPU! st ►'' 'It _ RAY GRUMNEY • Sta Tnbune httv:// www .startribune.com /newsgraphics /i 92537651.html 2/27/2013 • • • • Interactive map: The state of Minnesota's groundwater I StarTribune.com Log In I Regisle I My account I Subscribe Digital -Ho, +ery I eEddion Search + All content Business listings Search StarTribune ! news graphics News Local Sports Business Politics Opinion Lifestyle Entertainment obituaries classifieds Autos Housing .bobs Weekly adc Page 1 of 3 Home ) News Graphics Interactive map: The state of Minnesota's groundwater Graphic by: RAYMOND GRUMNEY Updated: February 23, 2013 - 10:08 PM Ground water occurs everywhere in Minnesota, but its availability for water supplies vary throughout the state. Ground water supplies about 75 percent of Minnesota's drinking water and nearly 90 percent of the water used for agricultural irrigation. Since 1944, the Minnesota Department of Natural Resources has managed a statewide network of water level observation wells. Data from these wells are used to assess ground water resources, determine long -term trends, interpret effects of pumping and climate, plan for water conservation, evaluate water conflicts, and otherwise manage the resource. About 750 observation wells are being monitored in the network. We have filtered this well data to show only the ones that are currently in use and have 20 or more years of data. By clicking on the web link you can get all the historic water level data for that location. • Well descriptions and water level data are available for each of the DNR observation wells. • Measured water levels are reported as depth, in feet, below the land surface. The number reported is actually the negative of the depth when plotted. These negative values describe ground water rise and fall in proper perspective. As you zoom into the map different data types will appear for you to explore; such as groundwater provinces, DNR observation wells, groundwater recharge rate data and major irrigation well sites. htto:// www .startribune.com /news2raDhics /i 92530551.htm1 Recommend 10 Twact 10 2/27/2013 M W O N A c�3 a • a � r .R• u a N i 7 i d � � � J IN dao o u, rn o in vOO, N rn n v tri ui 7v�7a. w E E cu cu H.moo N f�F n N 7 •4, 01 M V' tO CO •� 3 £• C U u tr C C N C h M .�-t to --t LO O R u R N to �I c O h tt ry O� ^ ry O W 06 '1 rn C py 0 tD 00 O 'a't N O N 1 C Oy v - • • • 0 c� N N N 0 kn kn a M N wt � •Lrl �1 O O c� ssw�w � .2 �L i P .y ' 1 V i • a � r .R• u a N i 7 i d � � � J IN dao o u, rn o in vOO, N rn n v tri ui 7v�7a. w E E cu cu H.moo N f�F n N 7 •4, 01 M V' tO CO •� 3 £• C U u tr C C N C h M .�-t to --t LO O R u R N to �I c O h tt ry O� ^ ry O W 06 '1 rn C py 0 tD 00 O 'a't N O N 1 C Oy v - • • • 0 c� N N N 0 kn kn a M N wt � •Lrl �1 O O c� ssw�w � .2 �L i P .y ..i _a •W Q U 7 a • z is Ul • a � r .R• u a N i 7 i d � � � J IN dao o u, rn o in vOO, N rn n v tri ui 7v�7a. w E E cu cu H.moo N f�F n N 7 •4, 01 M V' tO CO •� 3 £• C U u tr C C N C h M .�-t to --t LO O R u R N to �I c O h tt ry O� ^ ry O W 06 '1 rn C py 0 tD 00 O 'a't N O N 1 C Oy v - • • • 0 c� N N N 0 kn kn a M N wt � •Lrl �1 O O c� ssw�w � .2 �L i P .y Page 1 of 2 Foes fight the tide of 'smart' water meters • Brian Eason, USA TODAY 12.38a.m. EST February 15. 2013 Often when new meters are installed, bills go up even without a rate increase, because old meters can read lower levels of water than people are using. (Photo: Andy Manis for USA TODAY) Moves to modernize water utilities across the U.S. are coming under fire from opponents who say the costs will outpace the benefits of new technology. At issue are smart meters, new devices that measure water usage digitally, then transmit the data wirelessly to the utility. Industry officials tout their efficiency — utilities can save money by getting rid of manual meter readers, for one 'thing. They also say the new meters will help residents conserve water and monitor their usage online. "If I call in right now and I say, 'My water bill went up by $100, why is that ? "' said Chris McNeil, senior account manager with energy giant Siemens, which packages water meters with billing software. "There's no system in place to be able to answer that" in cities with older billing technology. • Opponents, though, dismiss these as talking points with little basis in reality. "That's really twisted — because really they're going to raise our bills," says Maria Powell, an environmental scientist from Madison, Ws. "The whole premise that people are going to go online and look at their water usage day to day, it's baloney. Most people aren't going to do that." The opposition mirrors that of fights against smart meters used by electric companies. Residents have bitterly opposed electric smart meters across the country, with some success. StopSmartMeters.org, an advocacy group in California, reports that 13 city and county governments in the state have banned smart meter installations within their areas. The fight over meters in Texas has become so heated that the Public Utilities Commission keeps reports on smart meters prominently displayed on its homepage. Web visitors can read staff reports extolling the virtues of smart meters, alongside more than 600 collected filings on the subject, many of them petitions from opponents. Pike Research, a firm specializing in clean technology research, cited the fights over electric smart meters in revising downward its own projections for the industry. But the firm still expects smart water meters to boom in coming years to an installed base of 29.9 million meters by 2017 from 10.3 million in 2011. Delores Kester, also of Madison, complains that residents will bear high up -front costs, as utilities go about changing out thousands of functioning analog meters. "It's tough times for a lot of people," said Kester, who organized a petition opposing the meters. "Atlanta had non -stop problems with huge water rate increases." Indeed, the opposition comes at a time when residents are spending larger and larger shares of their household budget on water. Costs are easily outpacing inflation, according to Fitch Ratings, a market research group. In the most extreme cases like Atlanta, residents are paying three times more for water today than they were 10 years ago, as utilities grapple with costly infrastructure needs. Often when new meters are installed, bills go up even without a rate increase because old meters can read lower levels of water than people are using. isWhen new meters were installed in Greenville, Miss., some residents' bills doubled, increasing by hundreds of dollars in some cases, according to reports from a local newspaper, the Delta Democrat Times. And in nearby Jackson, Miss., smart meters are projected to generate $60 million over 15 years, money that will be earmarked for work on the city's crumbling water and sewer system, according to city documents. httn: / /www.usatoday.com/story /news /nation/ 2013/02/01/ smart - water - meters -fight- utilities /1884677/ 2/27/2013 Page 2 of 2 Opponents also complain of privacy issues, and they say the wireless 'technology used in them —which is not unlike signals emitted by your celiphone — can cause health problems. Federal regulators insist the signals are safe, and health researchers haven't found a consistent link between radio frequencies and cancer, as opponents suggest. • Still, Powell and Kester successfully lobbied their public utility to allow residents to opt out of the new meters if they wish — for a $7.78 monthly fee. "We might have wanted more if it was Christmas," Kester said. "But we worked together to develop the policy that we have." Eason also reports for The Clarion- Ledger in Jackson, Miss. r ` FtI`D ROADS httr): / /www.usatoday.com /story /news/ nation / 2013 /02/01 /smart- water - meters - fight - utilities /1884677/ 2/27/2013 ® I- N co w L L j c� i O w C O t O D 0 vi 4a V® co Q C N L co C O D O O E N W W C) O Q Q O o � CO O Z : 0 H :4, Ei cn Ei Z3 ® co x C9 � o cz CO M O TO z zz ® N o co ,O �a i N U � J Qi U O i O M O N L y i a� Q G O cr v V a W V y Z v C as 0 3 a� w� W L O E O L O O O O O O O O O O O O "I N O N O N 4` r Lq O O LO LS) LO LO 00 N N N N r- M (0 CO 00 00 M Camel 00 � (o 0 O co OR LO V I Il- 9-� F Q O O O O O O O O O O N O O C) O O r O V 06 6 O N O O O O O O z O O O O O X O N m_ m ca O m E < E E O Q i N N O>- ` M O N } _ N_ O '�,, O O O i 0 0) O ci N N N ® O (III C N U) O O M� N ( O N N a% N m J N QS > > rn c N p o E N W W C) O Q Q O o � CO O Z : 0 H :4, Ei cn Ei Z3 ® co x C9 � o cz CO M O TO z zz ® N o co ,O �a i N U � J Qi U O i O M O N L y i a� Q G O cr v V a W V y Z v C as 0 3 a� w� W L O E O L • 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 Tom Sagstetter — Conservation and Key John Dietz — Chair Accounts Manager Daryl Thompson — Vice Chair Al Nadeau — Trustee MEETING DATE: AGENDA ITEM NUMBER: March 19, 2013 6.1 SUBJECT: Staff Updates DISCUSSION: • Working with Waste Management on Landfill Gas to Electric plant expansion. • Worked with ERMU staff to create and mail Appliance, CFL, and LED rebate information to all electric customers. • Completed 3 Project Conserve audits. • Working with Distributed Generation customers on new Reciprocating Internal Combustion Engine (RICE) requirements. • Participated in energy efficient micro -loan review process for new business in Granite Shores. • Attended first Elk River Rotary meeting. • � POWERED B1 Reliable Public y POWERED T O S E R V E Power Provider r • ELX RIVER AXQNIC l.,? Ie UTILITIE S SDUCAT.TONI SEAN.. A.R Rf DATE Z. 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