5.7. ERMUSR 10-21-2014Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO:
FROM:
Elk River Municipal Utilities Commission
Troy Adams, P.E. — General Manager
John Dietz — Chair
Al Nadeau — Vice Chair
Daryl Thompson — Trustee
MEETING DATE:
AGENDA ITEM NUMBER:
October 21, 2014
5.7
SUBJECT:
2014 Midwest Municipal Transmission Group Annual Meeting Update
BACKGROUND:
In 2006 the Utilities Commission authorized joining the Midwest Municipal Transmission Group
(MMTG) to explore the potential to obtain ownership in the transmission system. Through that
process ERMU entered into an agreement to participate through CMMPA in the CAPX2020
Brooking -Twin Cities Transmission Project in 2007. This investment in transmission assets
represents ERMU's direction to own instead of rent. This investment provides revenue to
mitigate transmission costs and help to lower ERMU electric rates.
Since inception in 2006, MMTG has provided assistance to the membership in regards to
transmission and generation for planning, construction, ownership /investment,
operation/maintenance, administration/management, and regulatory/legal advocacy. The
membership consists of over 50 municipal utilities, agencies, and associations from the Midwest.
MMTG is governed by a volunteer board of directors on which ERMU has had a representative
since 2006. In 2014, I served as the Chair.
DISCUSSION:
As Chair, I was able to influence the location of the annual meeting typically held in Iowa. This
year the meeting was held at the Minnesota Municipal Utilities Association (MMUA) offices in
Plymouth, MN.
The financial report indicates that cash balances are strong for all zones. The recommendation
for the Secretary- Treasurer was to not raise dues from 2014. This was put to a vote of the
membership and approved unanimously. The dues formula is $200 base fee, plus $100/MW for
general fund, plus $160 /MW for zonal fund. With the ERMU system peak reaching
approximately 61MW our MMTG dues would likely be about $16,000.
Regulatory and legal advocacy is a major part of what MMTG does for its members. MMTG is
a member of the national organization Transmission Access Policy Study Group (TAPS). The
TAPS membership is comprised of transmission- dependent electric utilities from over 35 states.
Through TAPS, MMTG has greater representation in the fight for open and equal transmission
access. TAPS represents its members through participation policy proceeding at the Federal
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Energy Regularity Commission (FERC), at the Department of Energy (DOE), and other federal
agencies. Taps also testifies before Congress on transmission related topics. An MMTG
representative, Anne Kimber from the Iowa Association of Municipal Utilities (IAMU), attended
the Fall TAPS conference in Indianapolis in September and provided an update on TAPS
activities to the MMTG membership.
Chris Kopel from Central Minnesota Municipal Power Agency ( CMMPA) gave an overview and
update on the CAPX2020 Brookings Project in which ERMU has invested. As a result of the
zero dollars "out of pocket" investment that ERMU made in this project, ERMU will receive
approximately $100,000 in 2014 and $60,000 for the next 30 years starting in 2015. At that time
the bonds will be paid for and the revenue will increase.
Robert Jablon of Spiegel & McDiarmid was the guest speaker. He gave an update on the
Guttenburg /IPL settlement, FERC /regulatory activity, and the future of capacity markets relating
to MMTG. The discussion of the future of the industry was followed by a discussion on the
future of MMTG and the expansion of our membership.
The membership and board voted on board members and officers. The results of the election are
as follows:
MMTG Board of Directors and Officers
Affective after the Annual Meeting on October 7, 2014
First
Name
Last
Name
Affiliation
2015
Office
State
Term
Notes
1
Allen
Bonderman
IPPA
IA
2013 -2015
2012 Election
2
Wes
Hompe
Willmar
Vice Chair
MN
2013 -2015
2012 Election
3
Steve
Tjepkes
Atlantic
IA
2013 -2015
2012 Election
4
Kevin
Kudart
Montezuma Light
& Power
IA
2013 -2015
2014 Election
5
Chris
Kopel
CMMPA
MN
2014 -2016
2014 Election
6
Anne
Kimber
IAMU
IA
2014 -2016
2013 Election
7
Mike
Litterer
Waverly Light &
Power
Chair
IA
2014 -2016
2013 Election
8
Steve
Thompson
CMMPA
MN
2014 -2016
2013 Election
9
Troy
Adams
Elk River
Municipal Utilities
Immediate
Past Chair
MN
2015 -2017
2014 Election
10
1 Ken
Kagy
Cedar Falls
IA
2015 -2017
2014 Election
11
Jack
Kegel
MMUA
MN
2015 -2017
2014 Election
12
Todd
Kielkopf
Indianola
Secretary-
Treasurer
IA
2015 -2017
2014 Election
ACTION REQUESTED:
No action requested.
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