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5.4. ERMUSR 05-20-2014 I i, Elk Riv■�r Munici al Utilities UTILITIES COMMISSION MEETING I TO: FROM: Elk River Mu icipal Utilities Commission Troy Adams, P.E.—General Manager John Dietz, C .it Al Nadeau, V',e Chair Daryl Thomp •n, Trustee MEETING 1 , TE: AGENDA ITEM NUMBER: May 20, 2014 5.4 SUBJECT: Minnesota M 1 icipal Utilities Association 2014 Legislative Rally DISCUSSIO I: Formed in 19 'I , Minnesota Municipal Utilities Association(MMUA)has a mission to "unite and serve as a ommon voice for municipal utilities and to provide them with the support they need to be abl,to improve service to their customers and community." MMUA represents 125 municipal ele i ric utilities and 31 municipal gas utilities in Minnesota. And although MMUA provides a"coil mon voice" as a joint action agency representing our concerns and advocating for our needs I the legislative front, they cannot do it alone. As legislative issues become more complex and . fect the municipal utilities differently, it has become increasingly important to provide local • pport to MMUA's efforts. One of the mo le critical times for this local support is during the legislative sessions when there is still an opp•l unity to provide comments and/or provide direction for the draft legislation. As a way to incre:se municipal utility awareness during session,MMUA organizes a Legislative Rally at our S I.,to Capitol. Packaged with this rally, MMUA also provides a conference with timely and ap• opriate training sessions targeted at the municipal leadership demographic in attendance. T is rally was held April 23-25, 2014. The talking p• nts for the Legislature this year were: laws for utilities can't be made as though "one size fits . 1,"and third-party retail electric sales hurt our communities. Information regarding thes: talking points, as well as others, is included in the attached MMUA message to the Legislatur: ATTACHM a TS: • MMU^ 2014 Message to the Legislature • MMU i 2014 Winter Legislative Conference Program • MMU 1 Informational Handouts 'POWERED o L3;_ Page 1 of 1 NATURE Reliable Public Power Provider P O W E R E D To S E R V E 99 IIIIINIP'Aff IIIIIIIIU,V 2014 Message to the Legislature 1.)Trust locally regulated utilities to serve their communities 2.) Keep Minnesota's retail electric structure strong and intact p • f _ — -- ' ''''''' i' I ' 11441 , * ' ,,,..,it] 'l'' '' II - i 1/0 , 1,,, 1 _.r_mmo,„.....,„ r . —.......,—,44R„.. i .0- ,, 1 4,,, ,. , il Alt 1 _410 ,... .., . , .., , 4 , , , ...... .4.. _ _ ...., _ f I '4-,' —- ' - 4 t'-'= Inside: Public Power's Role in Minnesota Regulated Utilities and Unregulated Third Parties Recent Municipal Electric Initiatives and Accomplishments 100 Public Power Role in Minnesota Minnesota's investor owned utilities are often referred to as "regulated utilities"because the Minnesota Public Utilities Com ission is charged with administering their rates and interpreting the many statutes that determine how e utilities should be operated in order to balance t e interest of customers with the utilities' sharehol•ers'interest. Minnesota's 44 rural -lectric cooperatives and 1 ® 125 municipal electr utilities are regulated too. - - Municipal electric utilities,which are owned by the .44\ 4 -� -40' £ customers they serv: and operated not-for-profit, ' -- are effectively regul. ed by their local governing bodies. Of the 125 m nicipal electric utilities, 59 . are governed by loca!public utility commissions established under st.to law or city charter. The 4r` other 66 municipal utilities are governed by their city councils. For several years, the role of Minnesota's consumer-owned utilities has been denigrated by some advo- cates for certain legi l ative proposals. These proposals would have painted consumer owned utilities and investor owned utilit es with the same broad brush, imposing mandates that aren't appropriate for local, not-for-profit utilitie.1 As a result, Minnesota's municipal and cooperative utilities have had no choice but to oppose the applic.k ion of this legislation to them, while these advocates decry our efforts to "get ex- empted"from their p oposed laws. rj Consumer-owned utilities are subject to a whole •. I host of state laws-from labor laws to consumer _ . ./< '� . ..- protection statutes to conservation and efficiency �r f---"°411-4°1',7' - requirements. (And unlike other utilities,'munici- " -" pal utilities are also subject to open meeting and �,.. y '�'` \ government data practices laws) For both the for-profit and not-for-profit sectors to incorporate a statewide policies that affect utility operations, f ' - - like the Next Generation Energy Act of 2007, con siderable industry input is needed in order to craft !' ) : workable legislation that is flexible enough for , - AN ,, statewide adoption. In most cases it simply doesn't 4"�r tzi, work to apply the same cookie cutter approach to '``; 1 k, �q ., large, investor-owned utilities and smaller, not- for-profit, consumer-owned utilities. Truly, one size does •of fit all when it comes to laws and utilities. In fact, very few laws that that affect operations in one sec or will make sense in the other. For very sound reasons,investor-owned, state-reg- ulated utilities and c•nsumer-owned, locally regulated utilities have long been governed under different, parallel, and equally -ffective regulatory structures. These dual modes of regulation have been in place for many years and .ve served Minnesota well. There are numerous reasons why the legislature should continue to respect the long tradition of local regulation by consumer-owned utilities. �‘ ' \ First, IOU's are vertically-integrated, while municipal utilities largely - ,� concentrate on providing electric service at retail. We generate very little \,I\ of our own power and typically do not own transmission lines. For the most�- part municipal power comes from separate wholesale power providers, and '' i': - 1- we must pay for power delivery from distant sources. On the other hand, 101 many municipal utilities are wisely invested in local back-up generation for power stability and emergen- cy self-sustainability(microgrid resiliency). So laws affect us very differently. Laws are most often written with the largest utilities in mind.A comparison of the size of Xcel with the average cooperative and municipal illus- trates the stark contrast in size and scale between the organizations, and demon- Xcel Customers vs.Average strates the difficulties inherent in enact- ing generally applicable laws that fail to ,---______, _ take into account the great variety and 1,400,000 1 _; � diversity we have in the electric utility ■ industry. 1,236,346 1,200,000 I - -.- _--- Eighty-two percent of our municipal I! electric utilities have fewer than 5,000 customers; 39% have fewer than 1,000 -- -__________ _____ customers, and 20% have fewer than 500 1,000,00o customers. Furthermore, 94% of munici- pal electric utilities are located in cities - _ _ with average household incomes below .100,000 the state average and their communities have a comparatively high percentage of residents who are elderly and living on a __` ---- 600,000 - °- - fixed income. Mandates that add costs can have a significant rate impact in a small ' utility. It's difficult to design a program that will work well for municipals and 400,000 �°----------- also work well for a large urban utility such as Xcel. Second, municipal utilities vary among one another in significant respects. There lz,3o9 % - - .. -2,,924---_--- are 125 of us. Sixty-seven of us have an- o � ____ �_ - nual loads that peak in the summer and `e� - 30 are winter peaking, while 26 have + �oAQ �--_ _- summer and winter peaks that are virtu- P,m o,`9 ally equal. Our power supplies come from e a wide array of different resources-even up to 96%hydropower. Our customer makeup varies too-from 11%residen- - tial to 96%residential; 3% commercial I fl. ,, ,- ®-„ to 73%commercial; and 0% industrial to ' = '��, ' '° 83% industrial. We also vary in our power i t�;/ �� `,' e , _..., suppliers, which include municipal power .`i*�,�''-- iL 6 - Fl- . ., agencies, the federal government, G&T • .. 4 rv } _ -;. _ , — cooperatives, distribution cooperatives, - - '. Q IOUs, and the MISO market. The types of = _ t ;---N.. relationships we have with these suppli- F' ,.,, k, ,g "" ers vary as well. Many of us have long ) ' term power supply contracts that certain ` ' proposed changes in state statutes would �1 unlawfully abrogate. In some cases these '1 -, .., ,,,, „,..,...„..„...._ contracts have been in place for years and • �- were drafted before the advent of today's °"�� distributed generation technology. � �� - i 102 is X .p,--- ", A ,..-, • e: it ,.., - ,021.0-,- u t '' . -' . - °— - , • '^ �` �� I .-s Size variation amon; municipals matters too,as well as geography. Minnesota's 125 municipal electric utilities serve comma nities in every region of the state, from the Canadian border forests to the southern farm belt.And while there is considerable variation in size, the great majority of our municipal electric utilities are located • Greater Minnesota and are quite small.The median municipal is located in a com- munity of 2,319 peo I e and serves 1,250 customers. Third, municipally o ned utilities are closer to their r, customers than IOU':. Energy policy in cities with f/t� , y _ municipal utilities i- established by a public body « ern �f« `, composed of local re: dents who know the community �,_ , y , b and its needs. Muni4 pal utilities are not-for-profit -t,ti.. < , s..; a Yy.. �.:; and operated in the 'labile interest. Municipal.utility • _ , ;�: � -. policymakers and st if not only have career interests ry{. t F in their community'' success, they have a personal •.,. it!' stake m the city wh= e they have chosen to live and ( 1.1 1," ! , build life-long relatii� ships. Because of,this,the ' _ i t,1 municipal utility's i erest in the well-being of its I I 1 ��° •,,. _.` community and dev. ion toward maintaining a high I ! ! ., ' _- ' 5 quality of life is mor, than a corporate slogan - it's the "" II foundation of our bu:iness philosophy. IMinnesota's public power providers have played an integral role in the electric industry for well over a century and we Nt '` -, are prepared to continue serving our communities for many •` _; years to come.The services we provide are similar to those • of the IOUs but we are very different organizations. State energy policy has to take into account these differences and "� recognize that legislative proposals drafted with large IOUs ----' i n mind cannot be assumed to work equally well in small - ..•` , " ' , consumer-owned utilities. ' = t` de` 1 t t}\; Tailoring policies to make sure that they are a good fit for • t i` i , " all types of utilities will ensure that we strengthen our state's regulatory framework rather than undermining it. 103 Regulated Utilities and Unregulated Third Parties 2 Whether regulated locally or by the state, every electric utility in Minnesota is required to serve every customer in ' its service area and provide a quality level of service set _ through state standards. This means Minnesota is a"regu- _ lated" state regarding retail electric service. In the 1990s, w j many states, including Minnesota, debated whether to"de- #; .,,►�_,( 1, P - regulate," allowing electric customers to elect to purchase ; ` ? their retail energy from third-party providers, even though `'fir they would remain connected to their local utilities'power `; lines. Sixteen states chose to allow this, while seven others started down the deregulation path and stopped when they saw what was happening in other states (particularly Cali- fornia)-namely rate spikes,brown-outs and market manipulation by pseudo-utility financial speculators. This is why Minnesota, after a serious debate, wisely resisted efforts to allow unregulated third-party retail electricity sales. In recent years advocates for a range of energy businesses have .— Fes;• been pushing to allow unregulated �, " third-party entities to sell electric- ��` - nii, k ity to end-users and circumvent ; 6 `'� . \r ,; °'% the public interest protections i5I' ,� `�' ' '-/" . I r Ii i -1 inherent in our regulatory system. 1 1 X17' a M IE- Some would take payment for elec- '�!' P y PRO-COliN LLC i I 1 iii 1 til(,4 . f tricity that they would generate on .Uu. _ 'R'g - ;'' r'.:41 a customer's property—when they - ` r -','� ,- „• , r v .» - - �+ �.;It can generate it—while relying on °"` ITT ^ ' , if 'V il-' . the power lines, substations, gen- -! \ ''``\ -- ` V l.. • r r ' '�"' ib- eration purchases and operational 4- --- --. . 1 nt ,I�3 j �4 ,email and administrative expenditures -ry. . I I 1,9e I -i ,11:',,,i,' ra f l$ '=1 of the local utility in order to have - ,- , .4 .,2 the utility provide electric service whenever they,the third party, cannot. Other third parties seek to force utilities to"wheel"power across their power lines from distant sites for sale by the third party to the utility's own customers. In both cases, the unregulated third party makes use of investments made by and on behalf of utility customers, leading to reduced revenues for the utility even though it must still bear the cost of operating and maintaining the system for the customer to use when necessary.This places an additional financial burden on those customers who rely on the utility for all of their energy needs—and in a small municipal utility those cost shifts become very real. All of Minnesota's electric utilities have the responsibility to provide EE ` "° '" :::- customers with the amount and quality of electric service they need, , 4 . when they need it, at the most reasonable possible price. Utilities were given the exclusive right to serve in order to accomplish this v It enormous duty. The persistent pressure by non-regulated third-party A , business interests to sell electricity directly to Minnesotans poses a ! serious threat to Minnesota's energy regulatory framework and its --�' / ' energy future. It is important for legislators to recognize that the --� F_ ' `1 -jr ` growing number of proposals in favor of even such "small-scale" de- s ,�- regulation raises a specter from the past that ought to remain dead. - '•a 104 Recent Municipal Electric Initiatives and Accomplishments z. ® ELF °-- ,, • Rochester Public Utilities(RPU)passed the 2 megawatt ft, CHAR"NG S , , hours mark in electricity provided by its three electric vehicle p. ..„„,q charging stations. ,, iij ii► A • Southern Municipal Power Agency (SMMPA)working group, ` ---- ,,. .. comprised of member utility management, set goal for develop- - �`} `' ing a solar implementation strategy for SMMPA and its mem- bers with anticipated implementation in 2015. AESEeum- _��(:, I® ranKmr, dV • SMMPA and RPU began assessing potential community solar ow ��! .�,' designs in fall 2013. • In April 2014, Moorhead Public Service released a solar gar- den project planning amework and began the feasibility analysis phase. • 2014 purchase (leggy slative approval pending) of hydroelectric dam from Wausau Paper by Brainerd Pub- lic Utilities. Legislati e funding for improvements sought. • Brainerd Public Utilities converted 678 more electric meters and 478 more water meters to AMR in 2013, allowing 85%of customers now to view their energy and water usage online. , , , ��VC..`i ..1 • In April 2014,New Ulm Public Utilities will start a new Back Pressure ., r .. Steam Turbine system on its current steam production plant to generate `11.. ,•''''441�..; -- 2.8 million kWh per year from combined heat and power. (1.4%of New ,f' d ';^. ' 4' ' Ulm's power.) ' '.t' a14;1. - • Funding sought in 2013 and 2014 from Department of Natural Resources ,, and the Legislature for municipal hydropower dam renovation at Lanes- bozo Public Utilities. / • Worthington Public Utilities'back-up generation kept Worthington run- -- +, ping"off the grid”when 2013 ice storm knocked out transmission. • Redwood Falls Public Utilities upgraded existing 300 kW hydropower unit to 500 kW. Estimated production now over 1,000 MWH annually. • Construction cont .,ct awarded in March 2014 for Missouri River Energy Services's hydro-electric gen- erating facility at th I existing flood control dam on Lake Red Rock in Iowa to benefit all of its municipal utility members, inc ding those in Minnesota. •In Le Sueur,Minn:rota Municipal Power Agency began operation of its new biogas plant capable of pro- ducing up to 8 MW o electricity from agricultural by-products. `, - • Nine homes converted to`smart homes'by Shakopee Public Utilities (SPUC) where energy usage can be monitored and �r. .r"i , '- — controlled in real time via homeowner's tablet or smart phone. • ,� ,- Partially funded by a DER/MMUA grant. U. SPUC added an energy storage component to the wind and solar energy generation systems it had previously installed at A 4111' :� the Shakopee High School Environmental Learning Center. 105 c O (l ^^,, . ® ` 1` r i a w g NIIIII CM CV CW ir ,-- , > -,.4 •.1-.7-fit 1 F 1-----) -.,. hi I •"" : jam. r 3 . A a • JZ . , a0 W - I- - 4\1 U Q s up , ', m or. o O IR to Z N O, �® a s 3 g t4 ' Ow pE A ; .b M � � �' W� b '. ^ M E Z =- O ui n -•` ZD ° r L E � M a a • t . a O Y Q o 3 ' d Z Z S z W 13 iNt o N v 6. Z Z I v N w O (C\17', c V O oS 0 CV N N , LL m c� °'�o o ^ o i tn s y Z E ` ; EN z — Na. � 5 1 e `aff,-l EJLII o o o a> N -"a .t 064) .5 00 1-- oUn 1= 0lE e co j..1 o v ) c .741' c o L. 0 V Z 0- W C :S. .r d I3 a) a0i u) .� O 7 a 7.) e U Y 0 c`• E3 � P L °t m - ai a) a o (a � a oa Ez m ro a) .° o 0 ) � � c O `a 6 �i y aM) 3Z � p m v M 0 rox� � el o �a) a.� . 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I , ' ,. .S, ,- , 144 The Minnesota Municipal Utilities Associa Innovative services ' for municipal utilities tion is a nonprofit corporation representing the �;;t t, i' interests of the state's municipal electric and ; Energy Services natural gas utilities.There are 125 municipal '' i�` 2 '`I \S t MMUA provides expertise that electric and 31 municipal gas utilities in Min- �� i the typical municipal utility nesota. (MMUA also has a number of Minnesota ! ` ,� cannot provide on its own.For municipal water utilities as members, and North d • / r ,. example,MMUA's Director of and South Dakota municipal electric utilities as `r , 1Es. Engineering and Policy Analysis associate members.)MMUA was formed in 1931 - ,j advocates for municipal utili- and provides a wide variety of services to its ties with state government on members. - conservation,renewable energy, and related issues.This MMUA Government Relations staff person also coordinates de- MMUA's legislative team, including staff lobbyists along with contract lob- velopment of new CIP programs byists from the McGrann Shea firm, actively represents members'interests and educates MMUA members on a wide variety of state legislative and regulatory issues in St. Paul.The on new conservation and low- MMUA Government Relations Commit- income spending requirements tee takes the lead in developing posi- tions. and the types of programs and We work closely with the League activities that will be necessary '',1*y 9 of Minnesota Cities and other local to comply. ( government organizations on state is- sues. Our two major legislative events MMUA Finance Program of the year include the MMUA Winter The Finance Program provides a Legislative Conference and our trek to simple,flexible, low-cost financ- ✓' .g the American Public Power Associa- ing option for municipal projects. tion Rally in Washington, D.C.MMUA t ° retains a Washington firm to monitor Utility Management/Operations Congressional activity and represent This service enables smaller member interests on federal issues. MMUA works closely with the American systems to have access to qual- Public Power Association(APPA) and the American Public Gas Association ity management services at an (APGA)on federal issues. affordable price.An experienced municipal utility manager,em- ployed by MMUA,will spend the We've got a place for you! amount of time your city desires MMUA membership classes include:Regular,Affiliate and Associate. in your community, helping lo- cal staff with a wide variety of Regular Members:Any city in the State of tasks and issues,from hands-on Minnesota owning and operating a municipal - line work to filling out and filing electric, district heating, gas or water util- ', reports.Full line crew services �,,ity is eligible for membership as a Regular -,c4. ,,- will also be made available upon Member. Only the Regular Members have i e ' '3 �' demand. voting rights. � f � t'. `1` i Affiliate Members:Any municipal power - if f agency or municipal gas agency or a- .. �� > �' ,= ,, � / nized under certain state statutes is eligible for membership as an Affiliate Member. . � r r=‘i 41,k/ ,; , Associate Members:Any natural or legal person not eligible as a Regular or Affiliate Member may apply for admission as an Associate Member. a4-11x' 108 JJf(/4 Instilling a safety culture among all municipal workers MMUA provides a ide range of 'r�r■ ...; ..4W.»ice _� •f �. job training, safety :nd OSHA .,,�` .,� .� compliance service- including: .`. '"j -`' Safety Management Se ice ° The MMUA team o Regional v,.,; Safety Coordinator': provides ' , safety managemeni services to 1., I '+ � , , ` , cities and municipal utilities in w��o . • `:' 1 Minnesota and the f to y akotas. Co- , " ordinators ensure e ployees re- ceive --- required trai Ing,manuals '-e.:.- , = - and records are up-r.-date,and workplace regulati• s are met. Coordinators work i ith crews on job sites,perfor 1`safety audits, accident invl:stigations, OSHA inspection s l•port, and The MMUA `v monthly safety mee ings.The %'� ' .•v. t € r• MMUA team works o instill a Training Center "safety culture"am., g all mu- , in Marshall nicipal workers. �� s� MMUA has developed a state � •'1k , j LMCIT OSHA Compliant: , M of the art training center in r „� fi Safety Assistance Progr:m 4 Marshall, on a 20-acre campus .sd J MMUA and the Le:;ue of Min- \` nesota Insurance T st have provided by the City of Marshall. '. established a partn,rship to The training center affords the provide safety services to an ex- opportunity for high quality, :$ „a y hands-on technical training in a k�j t ' i panding group of ci i es through 6, ti g 1 the LMCIT OSHA/':fety As- variety of disciplines,including , ' ,� sistance program. many aspects of electric and gas ` ,i.,,r<' . <:,, utility operations,confined space ter., „- ,.-' Lineworker Career Devel i ment Program and excavation.MMUA regu- ` MMUA's on site,oni� emand larly partners with the American training program alil•ws Public Power Association and the ■ I j municipal utilities `grow Minnesota Rural Electric As- �- It their own'linework.rs. sociation in presenting training 0[. programs. Utility workers from ' ;' Electric Job Training and•afety across the nation and around ' the world have received quality We travel the state roviding ,, .# high-quality on-site ethnical technical training at the MMUA training for electric tility work- Training Center. sfA►<> ers and other city e ,,ployees. Natural Gas Circuit Ride All this,and so much more! The MMUA Natural Gas Cir- MMUA offers various programs to cuit Rider provides as ecialized help members conduct their busi- 11011111 III support for gas utilities.Safety, ness. We offer a wide range of /IIIlliFie regulatory complia e, Opera- training and educational programs tor Qualification,re'ord keep- MMUA•3025 Harbor Lane N.,Suite 400 throughout the year, including our Plymouth MN 55447 ing, and performan4 training 9 both on-site and at ' e MMUA Annual Summer Conference. Our 763.551.1230 or 1.800.422.0119(MN) Training Center are among the publications are avidly read and www.mmua.org services provided b the MMUA offer advertising opportunities. For Gas Circuit Rider. more, call or visit us on the web! 109 Meet Minnesota's municipal electric and natural gas utilities • ;a 'Public power' ' , , How much do you know °h �1 about Minnesota's °o a,. I 1::. = = municipal utilities? ��►.'. (aid"'p Here are some facts you , 'o 1.: ' might find interesting. �' �, o� �' �� 4 ,�i is p , . • There are 125 mu- ^��,, 0 1 k. ® s ` 4 nicipal electric and 32 «' �� ,tir municipal natural gas '"� N, ;;`� ti'._, ...=k�„ . _, _ ., - . -:--... utilities in the state, i and they serve approxi- I I `$, 'a� ..,,,,,..c.:,� Big and small(but mostly small) matel 365,300 electric °~ -, . ' �' \1 By far the largest municipal y � . " '� t and 81,700 natural gas ,4 i ',44111 ,electric utility is Rochester,which customers. serves 49,769 customers.Moor- • Open, accessible, gov- • Most return some head,Austin,Anoka,Owatonna • Municipal utilities ernance is one reason funds to the city gener- and Shakopee are the only other are created through a municipals are also al fund, usually in the municipal electric utilities with majority vote in a local known as'public power' form of in-lieu-of-tax more than 10,000 customers, referendum. utilities. payments.Municipal utilities often help with Most municipal electric utilities • Regulation is largely • Municipals are non- 'in-kind'services, and serve smaller cities in Greater through the city council profit. Rates are cost- may also make addi- Minnesota: or local utilities corn- based. tional contributions. • 95 percent have fewer than mission. 10,000 customers; Our business philosophy • 80 percent have fewer than The trend in the electric -; 5,000 customers; utility industry these days is "1 , #1 consolidation. Utility merg- '. , ,-, • 74 percent have fewer than ers are widespread.As these d s1 r '. ' 2,500 customers; companies get bigger, they j ��s , tend to get farther and far- &, �,C ', , •36 percent have fewer than ther away from their custom- , , r, ''1 1,000 customers; ers. a o e •17 percent have fewer than 500 Being locally-owned and operated organizations, municipal utility poli- customers. cymakers and staff not only have a career interest in their community's success, they have a personal stake in the city in which they have chosen •The average municipal electric to raise their families and build life-long relationships.Because of this, the utility has 2,922 customers.The utility's interest in the well-being of its community and devotion toward median has 1,200 customers. maintaining a high quality of life is more than corporate slogan—it's the foundation of our business philosophy. •The smallest municipal electric is tiny Whalan,population 63. �,de�tUrYi"9fse�c '�s � Offer half of 1 �r o The largest Minnesota munici- utilities have successA� x v pal gas system is Duluth,with ` operated for 100 e rs of o e 28,861 customers. New Ulm, and it c ,,� ' z a ua ' z 'a vi,.e s+� ?' ,Hutchinson :''• , Y. � 3 r , <,` ` e ,, , also have more F - - i ' E ithan 5,000 gas „� i I"' $ t �u'l 4 :' �rar±R T ' t 4 , customers. i E'- ' ELECTRIC I11 Seventy-two ;- ry� n r N percent have fewer than 1,000 ,� `k WORKS customers. One third have fewer i v "' `,, r '' 4 R. ', than 500 customers. r, % -`' 110 Did you know? Municipal utilities are on track to meet Power supply facts and figures the Minnesota renewable energy sup- Municipal utilities do not generate ply target of 25%by 2025. Municipals all of their own power locally. Some own or have under contract 120 MW of generate a portion of their local renewable energy sources.Nationally, needs, usually as part of a combined the Northern Municipal Power Agency heat-and-power system or at times of is No. 1 in percentage of retail sales peak demand. from wind;the Southern Minnesota Municipal Power Agency was rated Most municipal utilities purchase -::*:':-11T.,4'.- '----:!= 3i, -'? fourth for estimated percentage of power wholesale, either from a mu- ': retail sales expected from wind power. nicipal joint action agency that they '° In Minnesota,Missouri River Energy area member of, or through some `" -. Services is first in percentage of power other contractual arrangement. -- purchased from Community-Based En- -1' ergy Development(C-BED)projects. Minnesota electric sales in kilowatt-hours ''-ow* 1 Co-op Founded in 1931, Minnesota Municipal =it k lid r, I ' " .'( ' t.,...! ° 21 .._ ( I 4a N� rf lig 5f Utilities Association(MMUA)is the - iou statewide association representing mu- -- _. _ Municipal 65% nicipal electric and gas utilities across orFrcrnr. onc;nv 14% the state of Minnesota. Minnesota M„ nicipal Utilities psvociation -c Y .,,•r{a i'.›. 4V Power suppliers to municipal electric utilities ,6- 4� ,, WAPA Co-op i % �s,.t 13% 13% -. G"; tIcStilii"s."Da .Xi..:,e _...., ;1. ' .'). ..1.,,,, r.`'1.V•... IOU Municipal utilities are lo- 16% cated throughout the state. I Of the 87 county seat cities Public Power .4 58% Iii`i i __ in Minnesota, 50 operate ' municipal electric and/or /` _ . 44-1,0" natural gas utilities. i vex en Jr®to ' en enn ' G-��;� r: Average municipal generation fuel mix t- _ a , Hydro q $° a 'ar i I "An :;,:it...,.;-441 11.81% , ip pi " b. ICt` # / Nuclear-6.91% @g'. -,.el a } ""; ' y SZ u e l -, �..• Wind-4.15% There are approximately 50 local IP,i� s _, `' ", ;� municipal power plants in `,' ° 1 E -° '411'4. . ' i'.?f; '' � I Coal i Natural Gas-4.11% Minnesota.These plants 4'7,14) :, 1 ,.__1 70.58% Other-2.44% are generally used in �t f ' l; °'� " �b 7 times of emergency and rev / also act as a hedge against s.x. / high wholesale market prices. y .3 .,3 , , rat _::1 +f _ li `I •' i ! ,�R" � - ,. I Note:numbers from DOE and MMUA surveys. 111 Where does municipal utiility power come from? Many of our municipal electric utilities rely on municipal joint action agencies for their power supply.A recent study by the Minnesota Municipal Utilities Association(MMUA)shows that 58 percent of the power sold by municipal electric utilities in Minnesota came from municipal joint action agencies. Sixteen percent of the power sold by mu- nicipals was purchased from investor-owned utilities, 13 percent from electric cooperatives and 13 percent from the federal Western Area Power Administration.These joint action agencies serve Minnesota municipal utilities: Missouri River Energy Services, Northern Municipal Power Agency, headquartered in Sioux Falls, S.D., serves these Minne- headquartered in Thief River Falls, serves these sota communities: Minnesota communi- Adrian,Alexan- MISSOURI ties: Bagley, Baudette, dria, Barnesville, Fosston Halstad, -- N RIVER E Northern Municipal Benson, Breck- Hawley, Roseau, enridge, Detroit ENERGY SERVICES° Stephen, Thief River <, Power Agency Lakes, Elbow Falls, Warren, , Lake, Henning, Hutchinson,Jackson, Lakefield, Lake Warroad. Park, Luverne, Madison, Marshall, Melrose, Moorhead, Ortonville,St.James, Sauk Centre, Staples, Wadena, Westbrook, Worthington. Heartland Consumers Power District, headquartered in Madison, SD, serves these Minnesota communities: Grove Southern Minnesota Municipal Power Agency, City, Lake Crystal, headquartered in Rochester, serves these Minnesota Marshall,Madelia, HEARTLAND communi- New Ulm,Truman, CONSUMERS POWER DISTRICT ties:Austin, Southern Minnesota Tyler. Blooming Prairie, Munici p al Power Agency The federal Western Area Power Administration(WAPA)supplies Fairmont, hydropower to 47 municipal electric utilities in the western part of Grand Marais, Lake City, Litchfield, Mora, New the state.These utilities supplement this resource with additional Prague, North Branch, Owatonna, Preston, Princeton, generating resources. Redwood Falls, Rochester, Saint Peter, Spring Valley, Waseca,Wells. /�/ WESrern ' AREA POWER A/W*1M IRA TI NV Central Minnesota Municipal Power Agency, S':''Mmidden headquartered in Blue Earth,serves these Mien �,„� Falls Minnesota communities: • Blue Earth, Delano, •East G, dFOrka , Fairfax, Glencoe, Granite r•,ielwilke • Falls,Janesville, Masson, =5ha"' Fase"" , 1 t.lotad •'"' Kenyon, Mountain Lake, �� Sleepy Eye, Springfield, Hae,Int Lake Park • • • • •Delroil Lakes Windom. Mu°meaa • Garr.milte Wadena • Gr°:kenrdg° • storks • • Honnm Minnesota Municipal Power Agency, Lty„••ke Alerardda p Y • Sauk Cork MMPA's principal place •• of business is Chaska. mg. • The agency serves these .• '0n°"'111e ';Kardi• h • Minnesota communities: +,. %Urea..•• • Minnesota Municipal Power Agency ••ladum Ltctdield Anoka,Arlington, Brown- GraniteFalka• C4rvkl , ton, Buffalo, Chaska, East aod,,..dFaus Fairfax . • Grand Forks, Le Sueur, North St. Paul, Olivia, T•t�r •k'ar'nall Na,,uknr • • • Sprinykekl . • Shakopee,Winthrop. a9aa$,00k Veer/E. • • SI.Jamee. • . ',bunion Lake• • Windom• Luverne Wa thingtcn akekeld Fair 01 ° • •dran• • •• •nrosdr• 112 Minnesota Electric Utilities Retail Customers 1965-2012 1,600,000 IOU 1,400,000 1,200,000 1,000,000 800,000 Co-op 600,000 400,000 Municipal 200,000 0 In I� m ,-1 m In N IT ,-+ m In N O) ri m L N m CO Ln c-1 LID Co t0 N N N CO CO CO CO 00 Cn Ql Ql Ql rn 0 0 0 O O <-I Ol 0) rn 01 01 C) al o, rn 01 01 01 Ol Cr) 01 01 01 a, O 0 0 0 O 0 c-I c-1 c-I ,--I I-I c-I ,--I ,-I ,-I c-I ri <-1 c-1 <-I c-1 <-I ,-I s-I N N N N N N Minnesota Electric Utilities Retail Mwhr Sales 1965-2012 50 IOU .— 45 ---- 2 40 35 30 25 20 15 Co-op 10 Municipal 5 0 Lf'1 N of <-I CO In N rn c-1 m In N 61 ,-I m In N 0) <--1 m 11'1 N rn c-I 10 10 10 N N N N N CO CO 00 CO CO 01 Cr) 01 al 01 0 0 0 0 O <-I 01 01 01 01 01 01 01 01 01 0) Ol 01 01 CFI Ol C) 01 01 0 0 0 0 0 0 <-1 <-1 <-I c-1 <-I <-1 ,-I <-1 c-i c-I <-I <-i ,-I c-I ,-I ,-i ri v-I N N N N N N 113