4.2. ERMUSR 08-11-2015 Elk River .
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Tom Sagstetter- Conservation and Key Accounts
John Dietz—Chair Manager
Al Nadeau—Vice Chair
Daryl Thompson—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
August 11th,2015 4,a
SUBJECT:
Vision Committee— 100th Anniversary Planning Update
BACKGROUND:
The 100 year celebration event scheduled for August 27th, from 4:00 p.m. to 8:00 p.m. is in the
final stages of preparation.
DISCUSSION:
• A page has been added to the ERMU website that is dedicated to the 100th anniversary
celebration. The page will be updated as more activities are firmed up and additional
information becomes available. Here is a link to the page:
http://www.elkriverutilities.com/pages/year.
• ERMU staff is requesting to close the office one hour early on August 27th. The office
would close at 3:30 p.m. Staff believes that there will be a good number of customers
that will be there promptly at 4:00 p.m. By closing at 3:30 the office staff will be able to
change clothes, drive to the event, and finish the set-up at the entrance to the fairgrounds
and the buffet line. If approved, the early closure would be posted on the entrance to
ERMU and on the website. The information would also be communicated to customers
through the standard ERMU phone greeting.
• Attached is ERMU's completed history report. The current plan is to provide a
complimentary copy of the book to each employee and Commissioner. Staff is looking
for discussion on the possibility of providing past Commissioners, and employees that
left in good standing,with complementary copies as well. If approved, ERMU will offer
a copy to those individuals that are easy to locate and don't cause a burden to staff to do
so.
• The City of Elk River Parks and Recreation Department has given approval to ERMU
staff to address the attendees of the last two concerts in the park events to inform them of
the 100 year celebration.
• A poster advertising the event is being posted in buildings throughout the city. A copy of
the poster is attached.
EN POWERED DT
Page 1 of 2 NATURE
Reliable Public
Power Provider P O W E R E D T O S €€V€
63
• At the August 3 City Council Meeting, the Mayor issued a Proclamation designating
August 27, 2015 as Elk River Municipal Utilities Day. The Proclamation is attached.
ACTION REQUESTED:
• Approve closing the office one hour early, at 3:30 p.m., on Thursday August 27th
• Approve providing complementary copies of the 100 year history book to past
Commissioners and employees that left in good standing.
ATTACHMENTS:
• History Report-The History of Elk River Municipal Utilities
• 100th Anniversary Event Poster
• Proclamation Designating August 27,2015 as Elk River Municipal Utilities Day
Page 2 of 2
NATURE
Reliable Public
Power Provider P O W E R E D T o S E R V E
64
A HISTORY OF
.. 1116LH--
Elk River ....„
.....„
Municipal U
a century of service a future of growth
YEARS
1915 - 2015
Rachel Peterson, Penny Petersen, Charlene Roise,
and Deanne Zibell Weber — Hess, Roise and Company
Foreword by John Dietz — Elk River Mayor, ERMU Commission Chair
Afterword by Troy Adams, PE.— ERMU General Manager
Table of Contents
Table of Contents i
Foreword–A Century of Service iii
A History of Elk River Municipal Utilities: Part I 1
Elk River before Electricity 2
"Waterman's Folly" 3
Litigation of Large-Scale Ownership 10
Charged up for Change 12
Changeover of Power 14
New Challenges,More Growth 20
A History of Elk River Municipal Utilities: Part II 23
New Territory,New Leadership 23
Rapid Growth—Establishing and Implementing Priorities 27
A New Millennium 30
Energy City, Sustainability, and Conservation 34
Landfill Gas-To-Electric Generation Facility 35
The Jackson Street Water Tower 37
Challenges Lead to Great Opportunities 38
The Big Stone II Decision 39
Midwest Municipal Transmission Group and Transmission Investment 41
Public Power, Local Control, and Ownership of Our Future 42
Growth and Electric Service Territory 43
Minnesota Municipal Power Agency 43
Reflection on a Century of Service 45
Afterword–A Future of Growth 47
Appendix A: Resolution and Creating a Utilities Commission 49
Appendix B: By-Laws of the Water and Light Commission,Village of Elk River, Minnesota 51
Appendix C: Elk River Municipal Utilities Commissioners and Employees 57
Appendix D: Service Territory Maps 63
Appendix E: Statistics 67
Appendix F: Part I Selected Bibliography 69
Appendix G: Part II Selected Bibliography 75
67
68
Foreword — A Century of Service
By John Dietz—Elk River Mayor, Elk River Municipal Utilities Commission Chair
It's hard to believe that Elk River Municipal Utilities is 100 years old. From very humble
beginnings to the sophisticated system we have today, we have indeed come a long way.
The goal was always the same—to provide reliable power at a reasonable price. ERMU also
provides city water to many customers. The dual role makes the company a valuable part of Elk
River's way of life.
If you take the time to read this story, I think you will enjoy it. It's more a history of how Elk
River has made it through some difficult times to become a very vibrant city. I think it's
extremely interesting to see how those who came before us got Elk River on the right path.
I have been a member of the Elk River Municipal Utilities Commission for more than twenty
years. I can't say that it has always been a bed of roses. There were many very tough decisions to
be made and I think the Board has always done what had to be done to keep the company
running smoothly.
We are now in the most exciting time in the company's history. We are about to complete a very
large territory expansion agreement that will mean nearly every Elk River resident and business
will get their power from ERMU.
We recently joined MMPA(Minnesota Municipal Power Agency)and will begin purchasing our
power from them in 2018.
The most important part of ERMU is the local control that it provides to its customers. Public
power is very important to many cities in this country. Profit is not the main factor for public
power entities; providing safe,reliable power is.
Elk River Municipal Utilities is and will continue to be a very vital cog in the future growth of
Elk River. Working as partners,the sky is the limit for the City and for ERMU.
69
70
A History of Elk River Municipal Utilities: Part I
This section was completed for the Elk River Municipal Utilities Commission in 1994 by Charlene K.Roise and
Deanne Ziebel Weber,Hess,Roise and Company
After many years of waiting and speculation as to when Elk River would wake up to the fact that
an up-to-date town must have electricity, the fact that the current is now on seems almost too
good to be true. . . . People are satisfied now that the long looked for electric lights and power
have really come to stay.
Sherburne County Star News,January 27, 1916
Elk River today is much different than the small village that welcomed the first glow of electric
lights in the early twentieth century. Population has skyrocketed from 859 in 1910 to 11,143 in
1990. Manufacturing has replaced milling as the primary industry. Four-lane roads link the once
quiet, agrarian community with the sprawling metropolis to the southeast.
The Elk River power plant was the first in an area that has since become a virtual power corridor
of generating facilities. In 1916, the Elk River Power and Light Company, as it was then known,
generated hydroelectricity with a single 200-horsepower turbine. Today, Elk River
Municipal Utilities purchases nearly all of the 67 million kilowatt hours of electricity it
distributes annually. Beginning with a handful of customers, it now serves nearly 5,000
households and businesses in Elk River, Dayton, Big Lake, and Otsego.
The following pages describe the Utility's evolution over the past eight decades. Background
information for this study has been obtained from a variety of sources. Primary references
include minutes of the Elk River Municipal Utilities Commission and the Elk River Village and
City Council. The Sherburne County Star News (SCSN)provided reliable and detailed coverage
of events from the first plans for power to the present. A collection of clippings and photographs
maintained by Evelyn Halter opened new avenues for exploration; unfortunately, few of the
articles were dated. Secondary sources, such as The Growth of Sherburne County 1875-1975,
edited by Cynthia Seelhammer and Mary Jo Mosher,broadened the historic context in which
utility service developed. Last,but not least, were the invaluable insights provided by interviews
with people who had been involved with the utility's growth.
The authors wish to thank General Manager William Birrenkott and Commissioners James
Simpson,James Tralle, and George Zabee for their help and patience during the preparation of
this report. Much-appreciated assistance was also provided by Patricia Hemza.
71
Elk River before Electricity
Between 1848, when the first trading post was erected, and 1881, when the Village of Elk River
was incorporated,two separate communities were established along the Elk River near its
confluence with the Mississippi: Elk River("Lower Town") and, about a half mile upstream,
"Upper Town,"also known as Orono. From the beginning, settlers were attracted by the area's
waterpower. The first dam and sawmill were built in 1851 at Orono by Ard Godfrey,who three
years before had completed the first private sawmill at Saint Anthony Falls, birthplace of
Minneapolis.'
An early Elk River settler reminisced about the area's activities in the 1870s:
Here we find a well-developed water power with wheels turning one of the most valuable
industries in the community—a flour mill. . . . On this same water power Galley&
Baltzell carried on a chair factory of no mean dimensions. . . . In the same building H.E.
Thomas made broom handles and for a time Joseph Featherston made staves for tight
barrel work.2
The timber crib dam at Orono
additionally served as a bridge over
the Elk River where the new Main r �,
Street bridge now stands. Lumber, t It , , ,.,r , '11 cel woo No
planing, flour, and gristmills were -
also built at Lower Town, near the -, � - .-= � "'" Ayr, '11
present location of the central
business district.3 This initial
development was typical of many
Minnesota communities,where
milling was essential to local ►•o Sib, A --� 47"
subsistence in the years before
railroads were built.
The timber crib clam at Orono, ca. 1870.
In comparing the overall prosperity of (Minnesota Historical Society Collection)
the two communities, Orono appeared
to have the edge until it was snubbed by the Saint Paul and Pacific Railroad, which extended a
branch line to Lower Town in 1864. Elk River also became a stop on the Saint Paul,
Minneapolis, and Manitoba(later Great Northern) Railroad in 1867. These rail connections
stimulated rapid growth: population more than doubled between 1860 and 1870. The Upper
Town and Lower Town officially merged in 1881, when the Village of Elk River was
1 Gene H.Hollenstein,Power Development in Minnesota,Bulletin 20,Division of Waters,Minnesota Conservation
Department(Saint Paul:n.p.,July 1962),3.
2 J.W.Featherston,"Interesting Account of Early Elk River by Old Time Resident,"Sherburne County Star News,
June 16, 1938.
3 Newton H.Winchell and others,History of the Upper Mississippi Valley(Minneapolis:Minnesota Historical
Society, 1881),296.
72
incorporated. Soon the village, the hub of the region's "potato belt,"became a prosperous trading
center for dairy and other farm products.4
Most buildings in the burgeoning community were made of wood,which was relatively
inexpensive and readily available. It also burned easily,to the dismay of area residents plagued
by a series of fires in the late nineteenth century. The upper milling district burned in 1887.
Downstream,W. H. Houlton lost three sawmills to flames. The town's most devastating fire
occurred in 1898,when thirteen frame buildings along State Street(now Railroad Drive
Northwest)burned to the ground. These buildings housed nearly the entire business district of
Elk River. Instead of rebuilding at the same location,business owners moved the center of
commerce across the railroad tracks to the area near the intersection of Main and Jackson
Streets.5
The wanton destruction caused by these wood-fueled fires was due, in part, to the lack of a
municipal water system. The problem was exacerbated by inadequate fire-fighting equipment.
According to Sanborn insurance maps, which provide details about building construction and
community fire protection, Elk River had neither a fire truck nor an organized fire department in
the nineteenth century. For emergencies, the village used a 600-foot hose to carry water from the
Great Northern Railroad water tank. It is easy to imagine how fires could quickly burn out of
control by the time the hose reached the scene—if it could even extend that far. After another
large fire in 1903, the village finally organized a volunteer fire department with a chief and six
firefighters and acquired a fire engine. Water could be supplied to the engine's pumps by three
artesian wells in the village. These wells were apparently the community's first public water
supply. A municipal water system was not created until 1920.6
The establishment of public services is a sign of a community's coming of age. In founding the
fire department,the village took a significant step in that direction. Sometimes,though,the
private sector leads the way. It took the capital and the tenacity of a local businessman to
electrify Elk Rivera
"Waterman's Folly"
When Thomas Edison brought electricity to Manhattan in 1882, it lit the imagination of the
nation. Electric lights could illuminate dark streets, and eliminate sooty oil and gas too expensive
for many,promised fresh meat and dairy products even on hot summer days, without the bother
of ice blocks.
a Ibid.;Theodore Christianson,Minnesota:A History of the State and Its People(Chicago:American Historical
Society, 1935),398;J.W.Clark,"Bits of Early Elk River History,"Sherburne County Star News,February 1, 1934;
Cynthia Seelhammer and Mary Jo Mosher,eds., The Growth of Sherburne County 1875-1975(Becker,Minn.:
Sherburne County Historical Society, [1975]),ad passim.Population statistics are from the ninth federal census.
5 Seelhammer and Mosher,Growth of Sherburne County, 101, 135.According to the 1894 Sanborn map,businesses
included a bank,grocery,printer,drugstore,tailor,and post office. See Sanborn Map Company,Elk River,Minn.
July 1894,Sheet 2,and Sanborn Map Company,Elk River, Minn.January 1905,Sheet 2.
6 Sanborn Map Company,Elk River,Minn.December 1899,Sheet 1,and Sanborn Map Company,Elk River, Minn.
January 1905,Sheet 1.
7 Hollenstein,Power Development in Minnesota,5.
73
Public and private interests throughout Minnesota eagerly followed Edison's lead, many taking
advantage of the state's bountiful waterpower to produce hydroelectricity. By 1882,Minneapolis
investors had established the state's first hydroelectric power plant, which was located on the
west bank of the Mississippi River. This single turbine operation shared a power canal with
massive flour mills, whose equipment was directly driven by the water's flow. Subsequently,
hydromechanical and hydroelectric generation were commonly paired: more than half of the
hydroelectric power plants built before 1914 utilized dams originally built for manufacturing
purposes. Like many grist mills and sawmills, early hydroelectric facilities were typically"small,
locally owned manufactories providing a staple product for a local market."8
While most early power plants were developed privately,precedent was set for municipal
ownership of electric utilities in the late nineteenth century. Brainerd opened a plant in 1887,
followed by Litchfield in 1890. Charter cities with populations over 10,000 had authority to
create independent utilities. This privilege was extended to smaller communities by state
legislation passed in 1907.9
Elk River did not rush into the electric age. On the eve of the First World War, the town's streets,
homes, and most businesses were illuminated by acetylene gas or oil lamps. Only the Blanchett
Hotel and the opera house had electricity,provided by privately-owned, gasoline-powered
electric generators. The lack of electricity did not seem to hinder the community's prosperity.
Businesses along Main Street in 1915 included a confectionery, two barbers, a millinery shop, a
billiard hall, the fire department, an auto repair shop, a bank, a furniture store, the opera house, a
grocery store, an agricultural implements dealer, a hardware store, a creamery, a printer, and a
hotel. Grain elevators were located near the rail lines.1°
Despite this economic activity,however,the local newspaper concluded that"the lack of electric
light and power is one thing that has held Elk River back for many years."11 It painted a picture
of life that seemed increasingly primitive in that era:
As yet, Elk River has not entered the ranks of progress,but continues to drub along
without electricity in any form. Its street lighting costs a good sum of money every year,
but is little better than a joke. The town has no power to offer and cannot hope to induce
manufacturing concerns to come here under the circumstances. In the homes of the
village,the citizens must lug primitive oil lamps around, with all the discomfort that
includes.12
s Jeffrey A.Hess,"Hydroelectric Generating Facilities in Minnesota, 1881-1928,"Multiple Property Documentation
Form prepared for the State Historic Preservation Office,Minnesota Historical Society,Saint Paul,October 1989,
E2,E5,E6.
9 Hollenstein,Power Development in Minnesota,5;Nicholas Kroska,Serving the Community: The History of
Rochester Public Utilities(Rochester,Minn.:The Company, 1988),5;James G. Coke,"Public Utilities
Commissions in Minnesota Villages,"M.A.thesis,University of Minnesota,August 1952,3.
10 Sanborn Map Company,Elk River, Minn.September 1915,Sheets 1 and 2;"Private Electric Plant,"Sherburne
County Star News,March 12, 1914.
11"Ready to Install an Electric Plant,"Sherburne County Star News,February 12, 1914.
12"Electricity,"Sherburne County Star News,July 2, 1914.
74
Salvation appeared imminent early in 1914 when two investors,Messrs. Waterman and Hildreth,
announced plans to generate electricity for the town. Hildreth's name soon disappeared from
references to the project; Fred Waterman apparently proceeded with the development on his
own. Born in Vermont in 1848,Waterman moved first to Wisconsin and then, in 1898, to Elk
River,where he became active in business and real estate development.13
The Sherburne Country Star News reported that Waterman's"proposition is along the line of
municipal ownership of the lighting and power equipment."Apparently, the village was to install
and maintain the power lines, and serve as a middleman between individual customers and
Waterman,who would operate the power plant as a private enterprise.14
He intended to develop a 200-horsepower hydroelectric plant,using waterpower rights which he
had purchased in 1910 at the former Upper Town milling area. Copies of his plans did not
survive, but they apparently called for replacing the timber mill dam, which had been destroyed
by high water in 1912. He proposed to furnish the town's electricity at a rate of six cents per
kilowatt hour,with a fifteen-year exclusive franchise.15
Some residents were skeptical. The newspaper noted that"many local people look with
pessimistic eyes upon any plan or attempt to secure the development of the [water] power."This
did not, however, slow the newspaper's enthusiastic editorial crusade:
Nature has been especially good to Elk River in providing water power close at hand,
ready to be developed to provide all the electricity for lighting and power that will be
needed for some time. At present this power is going to waste. . . . It is time for this
condition to end. The people must get together and decide upon some plan to secure
electricity. If not Elk River will soon find itself in the unique position of being the only
town of any size in the northwest without electric lights and power.l6
The local business community recognized the importance of bringing electricity to Elk River. At
the annual meeting of the Citizens Business League, shortly after plans for the power plant were
announced, a committee was appointed to investigate the expense of wiring the town for
electricity. After studying the matter,they concluded that the wiring would cost between$3,000
and $5,000. Waterman went before the committee in early July,proposing to furnish electricity
to the village on an exclusive fifteen-year contract for six cents per kilowatt hour,with a daily
minimum charge of ten dollars.17
He made a formal proposal to the Village Council on August 14, 1914. Consideration of the
power plant, however,became tangled in a debate over the nearby Main Street Bridge,which
13"Ready to Install an Electric Plant";"Masonic Rites for Waterman,"Sherburne County Star News,January 20,
1921.
14"Ready to Install an Electric Plant."
15"The Waterman Electric Offer,"Sherburne County Star News,July 9, 1914;Elk River Municipal Utilities
Commission Minutes,August 14, 1914;L.A.Dare,"Hydro Plant in 48th Year is Still Producing KW at Elk River,"
Sherburne County Star News,c. 1964.
16"Electricity."
17"To Investigate Electric Light Proposition,"Sherburne County Star News,March 15, 1914;"The Waterman
Electric Offer."
75
was inadequate for carrying an increasing traffic load. The issues were eventually separated,but
four months passed before Waterman appeared before the Council again. This time,he presented
a draft ordinance granting him a twenty-five-year franchise "for the purpose of transmitting and
distributing electricity for lighting,heating power and other purposes, in and through the Village
of Elk River."The village's role was reduced to a regulatory one, with Waterman taking on full
responsibility for electric distribution as well as production. The Council voted unanimously in
favor of the contract, and also agreed to pay Waterman $100 per month for installing and
maintaining fifty-to sixty-candlepower streetlights.)8
ELK R1VER.MEN..JANUARY 27.101n.-- Waterman was eager to fulfill the contract, and quickly
finalized plans for a power plant and dam. The economic
°lz„. demands of World War I, however, slowed his search for
financial backing. Finally,by June 1915, Waterman had
At,'' secured the necessary money and incorporated the Elk
A` River Power and Light Company. He became president of
--47..- the closely-held company, with his wife as vice president,
$ and M. E. Waterman(presumably Maude or Myra, one of
t
' ..011■•• his daughters) as secretary.19
1400........ By this time, however, he was nearly in default on the terms
J' of his franchise agreement with the village, which
11/0 - '..-, apparently required him to provide power by September 1,
1915. Since construction could not possibly be completed
so quickly, Waterman went before a special meeting of the
Village Council in June to amend the start-up date. This
was extended to January 1, 1916, with the new ordinance
F.D. Waterman (Sherburne County granting Waterman a twenty-five-year franchise to furnish
Star News,January 27, 1916) power to the Village of Elk River for a maximum rate of
twelve cents per kilowatt hour. Each customer would be
charged a minimum of one dollar per month. The earlier street light ordinance was revised as
well, granting a fifteen-year term and outlining more specific arrangements. The system would
include at least forty 60-candlepower and ten 100-candlepower lights, plus four additional lights
for a park bandstand. They were"to be lighted one hour after sunset and extinguished one hour
before sunrise, except on moonlight nights.”The village was to reimburse Waterman for the
actual cost of buying and installing the fixtures. He was also authorized to erect power lines as
needed.20
The delay provided ammunition for those who questioned the likelihood of the project's success.
Some dubbed it"Waterman's Folly."Their suspicions appeared to have some merit when ice
slowed construction, pushing the project's completion date back nearly three weeks. Temporary
18 The Main Street Bridge,a metal truss dating from 1884,was finally replaced by a concrete structure in 1920;see
Jeffrey A.Hess,"Elk River Bridge,"Historic American Engineering Record(HAER)No.MN-54,"prepared by
Hess,Roise and Company for the City of Elk River,April 1992.The council's deliberations are summarized in Elk
River Municipal Utilities Commission Minutes,December 4, 1914,and June 22, 1915.
19"Here's Man who Furnishes Elk River Electricity,"Sherburne County Star News,January 27, 1916.
20 Elk River Village Council Minutes,June 22, 1915.
76
gates on the dam were closed in mid-January 1916, and the reservoir began to fill. The doubters
were finally silenced on January 20,when the glow of electric streetlights illuminated six miles
of the community's roadways.21
Newspaper headlines proclaimed that the"Long Hoped For Electric Lights and Power Now [are]
a Reality and Elk River People Are Jubilant."The paper observed that`Elk River has truly been
slow about getting electricity,but perhaps it has been best after all because we now have a power
plant so much superior to those of other small towns that it is indeed the envy of all."It reported
that Elk River's plant could supply"97,500 sixteen candlepower incandescent lamps"and all of
the wondrous electric appliances being introduced in that era, including"flat irons, electric fans,
vacuum cleaners, and the various household utensils, such as toasters, coffee percolators and
even electric heating apparatus."22
Elk River's electricity was produced by a 200-horsepower turbine manufactured by the James
Leffel Company of Springfield, Ohio. The 156 KVA alternator-generator unit,provided by the
Minneapolis Electric Machinery Company, was described as a"new high efficiency frictionless
vertical type, . . . which is coupled direct to the vertical shaft of the waterwheel."In this
arrangement, the generator rested on steel bearings immersed in an oil bath. Earlier generators
were driven by belts,which provided unsteady, flickering light. With direct coupling, the current
was even. The system was controlled and monitored by a three-panel marble switchboard.
Charles Walters, an Elk River native, returned from Minneapolis to supervise the plant. By 1920,
he had been replaced by Mr. White from Princeton. In the following year, L. G. Nelson moved
from Chicago to take the helm, and he remained as superintendent until the mid-1940s.23
The equipment was housed in a 30-foot by 30-foot plant. With an eye to future expansion,the
building was large enough to accommodate an additional turbine-generator unit. The facility's
superstructure was dressed in textured brick supplied by the Hydraulic Pressed Brick Company
of Minneapolis and manufactured in Menomonie, Wisconsin. The building rested on a poured
concrete foundation from which a 256-foot-Iong, straight-crested,reinforced-concrete gravity
dam extended to the southwest. The southwestern end held three twelve-by-twelve-foot taintor
gates, which maintained the reservoir's twelve-foot head. Earth fill at either end extended the
structure to a total of 450 feet. Steel piling was driven into the riverbed to secure the dam,which
was located just upstream from the Main Street Bridge and about one hundred feet from the site
of the old mill dam.24
The dam,power plant, and an outdoor substation near the plant were designed by J. C. Jacobson,
a Minneapolis engineer who produced a number of hydroelectric facilities in Minnesota and
Wisconsin. He began his practice in Wisconsin Rapids, Wisconsin, as a millwright and"practical
21 "Hydro Plant in 48th Year Is Still Producing KW at Elk River";"Elk River's Fine New Power Plant,"Sherburne
County Star News,January 27, 1916.
22"Electric Current Now Turned On,"Sherburne County Star News,January 27, 1916;"Here's Man who Furnishes
Elk River Electricity";"Elk River's Fine New Power Plant."
23"Elk River's Fine New Power Plant";"Utilities Continues Tradition of Service it Started Here in 1916,"
Sherburne County Star News,c. 1958;"Negotiations Completed by REA for Purchase[of]Electric Company,"
Sherburne County Star News,July 12, 1943;Elk River Power and Light annual reports to the Minnesota Tax
Commission, 1920-1935,State Archives,Minnesota Historical Society,Saint Paul.
24"Elk River's Fine New Power Plant."
77
building engineer."25 One of his first major commissions was the Blandin Paper Mill and Dam
(as it was later known) in Grand Rapids,Minnesota. Constructed in 1901 at a cost of$200,000,
the new mill was built as a result of a concerted effort by Grand Rapids citizens to attract a major
industry.26
The next year, Jacobson prepared plans 'NW"
for the Consolidated Water Power and
Paper Company Mill and Dam on the
Wisconsin River at Wisconsin Rapids.
Along with future partner Leonard :.
DeGuere, he designed a 2,000-foot
timber crib dam,the largest in the state '
at the time.27
Jacobson and DeGuere formalized
their partnership in 1905, which was
for at least three other
important dams: the Watab Pulp and "'. = m
Paper Company Mill and Dam(1907) Postcard view of dam and power plant, ca. 1920
in Sartell,Minnesota; the Thornapple (Lyle Collins Collection)
Dam on the Flambeau River(1908) in
Wisconsin; and the Otter Rapids Hydroelectric Dam on the Wisconsin River, also in Wisconsin.
The partnership apparently dissolved in 1911, when Jacobson moved to Minneapolis. A
Minneapolis phone book lists the firm"Jacobson and Ackerman" in 1914, but Jacobson was on
his own again by the time he received the commission from Elk River.28
The construction foreman for the Elk River project was Charles Shearier from Wisconsin Rapids,
perhaps an acquaintance of Jacobson's from his Wisconsin work. Shearier oversaw a crew of
twenty-four to thirty men during the peak of construction. J. E. Sumpter of the Sterling Electric
Company, Minneapolis, supervised the line crew.29
Workers had little time to rest after celebrating the plant's opening. On the first day of operation,
only a few private businesses were connected to the system. Within a week, however, additional
commercial buildings plus the courthouse and fifty houses were hooked up. The Village
Council hurriedly passed regulations to establish wiring standards. Soon, the Elk River Garage
installed the town's first electric sign, and an electric motor powered the projector in the newly
redecorated Royal Theatre.3°
25 Dave Engel,(Wisconsin Rapids,Wisc.:River City Memoirs, 1986),69.
26 Donald L.Boese,Papermakers: The Blandin Paper Company and Grand Rapids, Minnesota(Grand Rapids,
Minn.: Charles K.Blandin Foundation, 1984),48-49.
27 Engel,Age of Paper, 73,74,80.
28 Timothy F.Heggland,"Thornapple Dam Historic District,"National Register of Historic Places Nomination,
March 5, 1990,8-23, prepared for the Wisconsin State Historic Preservation Office,Madison.
29"Waterman Builds First Power-Light Plant Here in`15,"Sherburne County Star News,July 23, 1931.
3o Seelhammer and Mosher, Growth of Sherburne County,300.
78
s(t 'i ray
7-----
i + a
d p�!Yy
'lipiti Fp,J
J. E. SUMPTER J. C. JACOBSON
J.E. Sumpter and J. C.Jacobson
(Sherburne County Star News,January 27, 1916)
Less than a month after service began, Waterman boasted that the company's income was
already covering operating expenses. The system's initial part-time service was increased to 24
hours a day, except on Sundays from 8 a.m. to 4 p.m. A peak load of 70 kilowatts was soon
dwarfed as the system rapidly expanded. By 1917,the company extended lines to Zimmerman
after negotiating a twenty-five-year contract at a rate of 13 cents per kilowatt. A year or two
later, a 150 KVA substation was constructed at Zimmerman, and a 13,200-volt line connected to
Princeton. Princeton had installed a direct-current steam plant in 1899,but the facility was
obsolete when alternating current became standard. Elk River Power and Light bought the old
plant and retained it for auxiliary power, and converted Princeton's distribution lines from direct
to alternating current. By 1922, the utility had 386 customers in Elk River, 60 in Zimmerman,
and 390 in Princeton. Only some customers had meters; others were charged a flat monthly rate
of one dollar. Plant operators worked twelve-hour days to earn$35 a month.31
Just as more and more people were growing dependent on the power system, an accident
highlighted the fragility of the source. In August 1920, one of the dam's floodgates collapsed.
The reservoir level dropped by about a foot before workers improvised a temporary gate with
heavy wood planks. The system's voltage was maintained,perhaps with the aid of an auxiliary
steam plant.32 The scare, however,might have convinced the 72-year-old Waterman, who was
31"Power Plant Doing Well,"Sherburne County Star News,February 10, 1916;Seelhammer and Mosher, Growth of
Sherburne County,327.For a discussion of Princeton's equipment,see Reuben B. Sleight,"Appraisal of the
Property of Elk River Power and Light Company,Elk River,Minnesota,"prepared for the Minnesota Tax
Commission,November 1922,in Minnesota Tax Commission records,State Archives,Minnesota Historical
Society,Saint Paul. Elk River served Princeton until 1939,when Princeton installed its own municipal electric plant.
Rate information is given in"Utilities Continues Tradition of Service It Started Here in 1916."
32 A court case in the early 1920s mentions"an auxiliary steam plant provided for use in cases of emergency";see
"Welsch et al.v.Elk River Power and Light Co.,"syllabus by the Minnesota Supreme Court,January 4, 1924, in
Northwestern Reporter 196(1924):650.
79
rumored to be in poor health, to quit the business. Two months later, he sold the dam and power
plant to his son-in-law, Dr. F. E. Griswold of Minneapolis. Griswold had two partners: C. A.
Willd, a lumberman from Hoffman,Minnesota, and John Colbrath, a Minneapolis real estate
investor. The new owners pledged that they would follow the"progressive lines" mapped out for
the company by Waterman.33
On January 13, 1921, F. D. Waterman died. Many stores and businesses closed during his funeral
two days later to allow all to pay tribute to the man who had brought power to Elk River. In
addition, according to a contemporary newspaper account, "as the words of eulogy were being
spoken over[Waterman's] body at the church, the power wheel at the power plant was shut
down and for fifteen minutes the wires and motors which he had first furnished with electric
energy were cold and dead."34
Litigation of Large-Scale Ownership
Within a year of Waterman's death,the new operators expanded operations by installing a new
Leffel turbine with a 188 KVA generator. They also added flashboards to the dam to increase the
available head by about three feet. The rising reservoir flooded land upstream, and five irate
homeowners brought suit claiming damage to their property. Elk River Power argued that the
fifteen-foot head was necessary to maintain sufficient voltage on the system. In 1923, an acting
district court judge not only awarded each plaintiff$425 for loss of property value but also
ordered the company to remove the flashboards as soon as an arrangement could be made to
acquire extra power. The Minnesota Supreme Court agreed to hear an appeal from the company,
which maintained that the money adequately compensated property owners for loss of land
caused by the flashboards. Ultimately, the flashboards were allowed to remain.35
The resolution of the case might have been hastened by the desire of Dr. Griswold and the other
investors to sell the business to the Chicago-based William A. Baehr Organization, which had
begun to manage the plant late in 1923 with an option to purchase. The deal was finalized in
January 1924.
Born in Oshkosh, Wisconsin, in 1873, William Baehr had worked for power companies in
Milwaukee, Denver, and Saint Louis. He founded a consulting engineering practice in 1909,
specializing in designing,building, and managing gas and electric plants. By the 1920s, Baehr
was president of North American Light and Power Company and North Continent Utilities
Corporation,both large utility holding companies. When he acquired the Elk River plant,his
operations were reportedly valued at about$165 million,ranking as one of the largest power
conglomerates in the country.36
33"Flood Gate Goes Out,"Sherburne County Star News,August 12, 1920; Seelhammer and Mosher,Growth of
Sherburne County,335;"Waterman Sells Power Interest,"Sherburne County Star News,October 28, 1924.
34"Masonic Rites for Waterman."
35"Welsch et al.v.Elk River Power and Light Co.,"649-51;"Supreme Court Grants New Trial in Power Cases
Here,"Sherburne County Star News,January 10, 1924.
36 John William Leonard,ed., Who's Who in Engineering(New York:Who's Who Publications, 1925),94;"Deal
Completed for Purchase of Elk River Power Property,"Sherburne County Star News,January 17, 1924;"Waterman
Builds First Power-Light Plant Here in`15."A company history written by former Superintendent William
Patenaude in 1972 asserts that the company changed hands twice in 1923 before being acquired by Baehr.One
80
The explosive expansion of Baehr's holdings typifies the trend towards consolidation in the
electric utilities industry in the late 1910s and early 1920s. In the first decades of the twentieth
century, hundreds of small, independent power companies, like Elk River Power and Light,were
created. World War I prompted some utilities to join together in networks to use precious power
more efficiently. This movement continued after the war,resulting in massive utility holding
companies. These companies, such as the Baehr Organization, often purchased and merged
smaller companies to form interconnected regional power grids. These power-sharing networks
created efficiencies of scale,which ideally resulted in a cheaper and more reliable supply of
electricity.37
Baehr was apparently planning to develop such a grid in Minnesota. Almost immediately after its
purchase of the Elk River utility, the company connected the village with a 30,000-volt line that
ran from Monticello to Saint Cloud. This line was fed by a power plant in Saint Cloud that Baehr
had managed for several years. To further expand the network, a distribution line was run from
Elk River to Dayton.38
Despite improvements to Elk River's 300-kilowatt hydroelectric plant, customers had suffered
from frequent interruptions in service, so the union with a larger network came as welcome
news. The Sherburne County Star News observed that the arrangement"assures this community
of plenty of electricity for power and light purposes."The new service proved its worth in 1926
when, for the first time since the hydroelectric plant opened, it became inoperable for a short
time due to low water levels.39
Baehr apparently failed to exercise the option on the Saint Cloud plant, which was taken over in
1925 by another private company,Northern States Power(NSP).40 Rates paid by Elk River for
auxiliary power fluctuated almost yearly during the Depression-riddled 1930s. In 1930,the
company charged$5.75 for 50 kilowatt hours; they lowered rates by 10 percent in 1932 and
offered to reduce rates even further if paid by the tenth of the month. By 1935, the same amount
of power cost$3.75. The Elk River Village Council occasionally put pressure on rate
negotiations, once threatening to issue bonds to fund construction of a municipal plant. While
this foreshadowed activities a decade later,the Council dropped the idea when NSP lowered
rates.41
owner was said to be the Herb Croft Company of Monticello;the second,Mid-Central Public Service.There is,
however,no evidence of these owners in tax records or newspapers.
37 Hollenstein,Power Development in Minnesota,9;Thomas P.Hughes,Networks of Power:Electrification in
Western Society, 1880-1930(Baltimore and London:Johns Hopkins University Press, 1983),291-292.
38"Deal Completed for Purchase of Elk River Property."
39 Elk River Power and Light,"Annual Report to the Minnesota Tax Commission"for fiscal year ending 6/30/1926,
Minnesota Historical Society,Saint Paul; Seelhammer and Mosher, Growth of Sherburne County 1875-1975, 374.
"In 1925 N.S.P.Co.acquired a group of properties serving St.Cloud and a considerable territory to the west. . . .
In the expansion of the N.S.P.Co. system there appears to have been a general policy of building up a consolidated
territory so that interconnection of plants would be economically feasible."Quoted from Russell E.Johnson,"A
Comparison of the Development of the Electric Utility Industry in Wisconsin and Minnesota,"M.A.thesis,
University of Minnesota,June 1936,84.
41 Municipal Year Book 1930,vol. 1 (Minneapolis:League of Minnesota Municipalities, 1930),237;Municipal Year
Book 1935,vol.6(Minneapolis:League of Minnesota Municipalities, 1935),234;Seelhammer and Mosher, Growth
81
Demand eventually pushed prices higher, as drought during the late 1930s decreased
hydroelectricity production in Elk River and throughout the state. By this time,however, some
new players had been introduced. The Anoka County Cooperative Power and Light Association
had been created with assistance from the Rural Electrification Administration(REA), a federal
New Deal program that provided loans to farmers to form electric cooperatives. The Anoka
group, in turn,joined with other cooperatives to form the Rural Cooperative Power Association
(RCPA), which opened a 3,750-kilowatt generating facility in Maple Lake in 1940. The new
plant allowed Elk River to sever its unhappy tie with NSP and buy lower-priced auxiliary power
from the RCPA through the Anoka County Cooperative.42
Still, the Elk River utility's absentee owners were the target of vociferous complaints by local
consumers who found the quality of service low despite comparatively high rates. The Twin City
Milk Producers' Association, for example, contemplated building its own generating facility in
Elk River because rates were so much higher than at its other processing plants. The Elk River
Commercial Club grew increasingly concerned about the economic repercussions of poor
electric service. As the Citizens' Business League had done in 1914,the Commercial Club
unanimously approved a resolution urging the Village Council to investigate the feasibility of
constructing a municipal electric plant.43
Charged up for Change
Despite dissatisfaction with Baehr's operation,the Elk River Village Council was initially
unwilling to pursue municipal ownership. Instead, it encouraged the Anoka County Cooperative
to acquire the utility. In June 1942,the Cooperative negotiated terms and a price of$155,000
with the Baehr Organization. Upon acquisition, it planned to serve Elk River Power's customers
in the village, as well as Zimmerman and Dayton. The Anoka group intended to upgrade the Elk
River hydroelectric plant and maintain it for auxiliary service. In addition,the Cooperative hoped
to devote $300,000 to construct 300 miles of lines in rural areas around Elk River.44
Before arrangements could be finalized,however, Elk River's support turned to opposition. The
village initiated a lawsuit against the Elk River Power and Light Company to block the sale. The
suit, filed in February 1943,maintained that the Anoka County Cooperative's bylaws authorized
it to buy and distribute,but not to generate,power. Also, the Cooperative could provide service
only to its shareholders, while "plaintiff village and many of its inhabitants cannot lawfully
of Sherburne County 411,481;"Commercial Club Asks Council Investigate Electric Situation,"Sherburne County
Star News,April 23, 1942.
42 Minnesota Department of Taxation,Transcript of hearing for abatement of 1947 personal property assessment,in
Public Utilities Records,State Archives,Minnesota Historical Society,Saint Paul,4;"Village to Investigate Cost of
Diesel Electric Power Unit,"Sherburne County Star News,November 8, 1945; United Power Association:Story of a
Rural Electric Cooperative(Elk River,Minn.:The Company, 1987),8-11.
43"Commercial Club Asks Council Investigate Electric Situation";Elk River Village Council Minutes,April 16,
1942.
as Leon Barrier,Our Silver Anniversary, 1937-1962:History of"25 Years of Progress"(Anoka,Minn.: Anoka
County Electric Cooperative, [1962]),21;"Negotiations Completed by REA for Purchase Electric Company,"
Sherburne County Star News,July 2, 1942.
82
become members of said Association."45 By September, an amendment to the group's articles of
incorporation removed this objection,but by this time the Village Council was entrenched in its
stand against the sale to the Cooperative. In a special meeting on December 10,the Council
voted to terminate its franchise with the Baehr Organization. Three days later it learned,
however, that the franchise could not be terminated as easily as the Council had assumed. By the
end of the month, a compromise appeared to be reached: the Anoka County Cooperative would
buy the generating facility, while the Village of Elk River would acquire the distribution system.
Special meetings and discussions continued with Anoka regarding the purchase of the generating
system through the beginning of 1944. Village officials were also exploring an arrangement with
NSP.46
A turning point for municipal ownership came in June 1944, when Elk River held a special
referendum to authorize issuance of$70,000 of bonds to either purchase the existing generating
system or construct a new facility. Apparently the controversy didn't inspire much interest by the
general public: voter turnout was less than 50 percent. The measure passed 195 to 74.47
The issue, however, was far from resolved. William Baehr had died suddenly in 1943. His
successors at the Baehr Organization wanted $120,000 for the plant,machinery, and lines, a
$35,000 discount from the deal negotiated with the Anoka Cooperative. The Village,however,
offered$25,000,based on the depreciated value of the company's equipment. This was
summarily rejected by Baehr's group in October 1944.Negotiations remained at a standstill for
the rest of 1944 and the first half of 1945.
In frustration,the Village hired the Saint Paul engineering firm of Toltz, King and Day(now
Toltz, King,Duvall, and Anderson)to draft plans for a new electrical distribution system
independent of Baehr's equipment. Although the Council had not established a source of power
for the system, it apparently anticipated no problem in making arrangements with Baehr or
another company once the lines were in place. The plans, which were approved by the
Council in April 1945, called for a brilliantly lit"White Way" in the business district around
Main and Princeton Streets. New lights would also be added along the new"superhighway,"
Trunk Highway 10, in cooperation with the Minnesota Highway Department. Heavier wiring
would be installed throughout the system to take care of increased postwar demand for
electricity.48
Elk River Mayor Glenn Davidson travelled to Chicago in July 1945 to discuss a sale with the
Baehr group,to no avail. A deal was finally negotiated on August 2 at a meeting in Minneapolis
with representatives from Elk River, Baehr, and Toltz, King and Day. Baehr vice president A. C.
Winters cut the asking price in half, to $60,000. The Village countered at$50,000, and refused to
45 Village of Elk River v.Elk River Power and Light Company, Sherburne County District Court,Civil Case No.
19080,filed February 4, 1943,State Archives,Minnesota Historical Society,Saint Paul.
46 Barnier,Our Silver Anniversary, 1937-1962,21;Elk River Village Council Minutes,September 14, 1943,
October 7, 1943,December 10, 1943,and December 13, 1943.
47"Commercial Club Asks Council Investigate Electric Situation"; Seelhammer and Mosher, Growth of Sherburne
County,481;"Elk River Makes Purchase of Local Hydro-Electric System,"Sherburne County Star News,August 9,
1945.
48"Village Council Orders Plans for Electric Distribution Plant,"Sherburne County Star News,January 18, 1945;
"Plans Complete for Municipal Electric Distribution System,"Sherburne County Star News,April 19, 1945.
83
go higher. Winters claimed that he was "over a barrel," since federal regulators were forcing
liquidation of the Baehr holding company. He finally agreed to accept $50,000 for the"total
physical inventory of the Elk River Power and Light Company including transmission lines [a
high line to Monticello and lower-voltage lines to Zimmerman and Dayton],power dam, flowage
rights, car,truck, and all material and supply on hand."On August 22, the Council passed a
$70,000 bond resolution to finance the purchase and make necessary improvements.49 Six weeks
later, on October 4,the Sherburne County Star News reported: "This is an important day in the
history of Elk River, as it is today that the final transfer of the power plant and complete electric
system of the Elk River Power& Light Company to the village will be made."5°
Changeover of Power
To highlight the change of ownership, the Council christened its new business the Elk River
Public Utilities. The name was changed to Elk River Municipal Utilities in about 1949,probably
in response to amendments to the state law regarding municipal ownership of utilities.51
Although originally intending to appoint a three-person commission to manage the Utility's
affairs, the Council apparently decided to directly oversee initial operations. L. G. Nelson, who
had supervised the utility for Baehr for nearly twenty-five years,was replaced by Warden C.
Holsbo of Elkhorn, Wisconsin. Holsbo was appointed"superintendent of public utilities,"the
first time that management of electric, water and sewer services was combined. Mabel Nord
became the village's clerk and bookkeeper,responsible for the municipal liquor store as well as
the utilities.52
Minor repairs were undertaken immediately, while alternatives were considered for Elk River's
outdated,under-capacity system. The Council contacted a number of municipal utilities that
relied primarily on their own generating facilities, as well as others that purchased most or all of
their power from outside sources. Based on their findings,the Council concluded that economics
favored self-sufficiency. This was especially the case in Elk River, where the hydroelectric
plant's production was of some value, and existing staff could manage additional operations.
Within a month after purchasing the utility,the Council directed Toltz, King and Day to draft
plans and prepare cost estimates for a diesel engine to serve as an auxiliary to the hydroelectric
generators. In March 1946, the Council expanded its original concept, requesting bids for two
750-horsepower, 550-kilowatt diesel engines. At some point in the planning,the diesel engines
became the system's main power source, with the hydroelectric operation maintained as a back-
up for peak loads and emergencies.53
49 Elk River Village Council Minutes,August 22, 1945; "Elk River Makes Purchase of Local Hydro-Electric
System";"Holding Company to Be Liquidated,"New York Times,November 18, 1943.
so"Final Signing of Papers Today Transfers System to Village,"Sherburne County Star News,October 4, 1945.
51 Elk River Village Council Minutes,November 5, 1945.For a discussion of the 1907 ordinance creating utilities
commissions and the subsequent 1949 amendments,see Coke,"Public Utilities Commissions in Minnesota
Villages," 17-27.
52"Village of Elk River Takes Over Complete Power and Light Plant and System Next Week,"Sherburne County
Star News,September 27, 1945.
53"Village Will Proceed with Plan to Purchase Diesel Plant,"Sherburne County Star News,March 7, 1946.
84
The Council saw little alternative to upgrading the system. The village had become dependent
upon power from the Anoka County Cooperative, but the service, according to a newspaper
account, "has been getting steadily worse and in spite of the many protests made to them about
the service no attempt has been made to correct it."The village had considered switching to
NSP,but that utility had no power to spare.54
When the Council opened the engine bids in May, however, all were deemed too high, and a
decision was postponed. Post-war equipment price increases prompted the Council to reconsider
the issue in October and vote to purchase the engines from the Worthington Pump and
Machinery Company, which agreed to honor the May bid. Because of a backlog of orders,
though, Worthington could not promise delivery until the following summer. In the meantime,
crews upgraded the system's lines, although work was impeded by shortages of wire and
transformers. Work also began on the"White Way"through downtown and along the highway.55
Activity slowed during the winter,but in February 1947, in anticipation of the spring
construction season,the Council opened bids for a new sewage treatment plant and a building to
house the Worthington engine. Bids for the former were over budget and all were rejected,but
the Council awarded a contract for$64,276 to Saint Paul contractor Howard Purtell for the
power plant, and for$40,140 to Kehne Electric of Minneapolis for the electric equipment and
switchboard.New remote controls would permit operation of the hydroelectric facility from the
new diesel plant,to be located just across the road. Bonds totaling$225,000 were issued to
finance these and other improvements. The Council assured the public that the bonds would be
paid by the utility's income,not tax dollars.56
Also in February, the Council accepted the resignation of Superintendent Ward Holsbo. By
April, George W. Wombill,manager of the public utility in Madison, Minnesota,was hired to
replace him. Wombill had been with the Madison utility for ten years, and with the utility in
Marshall, Minnesota, for seven years before that. At the same time,poor health forced Vernon
Skellinger to resign as a member of the Village Council. Skellinger had been the Council's
authority on municipal utilities and had been a strong proponent of the new diesel plant. The
Sherburne County Star News noted that"the council feels the loss of Mr. Skellinger keenly."57
His departure might have catalyzed a reevaluation of the Council's responsibilities with the
utility business,which was demanding an increasing amount of time and energy. In addition to
issues related to the electric service, the community's waterworks were also requiring more of
the Council's attention. The municipal water system, supplied by a 310-foot well, had been
established in 1920 at a cost of$50,000.58 On July 11, 1947,the Council decided to combine all
54"Village Signs Contract for New Diesel Generating Units,"Sherburne County Star News,October 17, 1946.
55 Elk River Village Council Minutes,May 6, 1946;"Village Signs Contract for New Diesel Generating Units."
56"Village Signs Contract for New Diesel Generating Units";Elk River Village Council Minutes,November 7,
1946,February 20, 1947.
57"St.Paul Man Is Low Bidder for Local Power Plant Building,"Sherburne County Star News,February 27, 1947;
"Village Council Names Wombill Superintendent Public Utilities,"Sherburne County Star News,April 10, 1947.
58 Seelhammer and Mosher, Growth of Sherburne County,337.By 1928,the system included a 100,000 gallon tank:
on a 100 foot tower;average daily consumption was 40,000 gallons. See Sanborn Map Company,Elk River.Minn.
April 1928,Sheet 1. Information on peak loads is in"Utilities Continues Tradition of Service It Started Here in
1916."
85
utilities, creating a Water, Light, Power, and Building Commission to"be in entire charge of the
public utilities in the village from now on, including the water department, the municipal light
and power and the public buildings."The resolution empowered the three-member commission
to fix rates, adopt rules and regulations, employ workers, enter into contracts to extend and
modify existing utilities, and purchase fuel and supplies. In accordance with state law,
commission members were appointed for staggered three-year terms. They served without
compensation. While Skellinger might have found the Council's schedule too demanding, he felt
sufficiently fit to become the Utility Commissions first president. Otis Nickerson was appointed
for a two-year term, and Cleeland Meyers for three years.59
The Commission's first challenge was to complete the new plant. Six bricklayers were at work
on the new building by July. The summer's low water level was further reduced in August,
bringing Lake Orono's surface to about four feet below normal. This facilitated renovation of the
dam, including replacement of the flashboards and installation of discharge and suction lines
through the dam for the new diesel engines. A dry spell slowed the reservoir's replenishment
when work on the dam was complete, greatly reducing the hydroelectric plant's output for nearly
three months. The diesel engines were anticipated to arrive in August and be in operation by
October. Because of a number of delays, however, including two nearly fatal accidents at the
construction site,the new plant was not ready to go until the end of February 1948.60
A Sunday morning was chosen for the ,�� ' L ,
transition from hydroelectricity to ~"
diesel power,which required the / / a , '�'
system to be shut down for a few ,- -° ,,,,,� •' 'a, . ,a F
hours. A severe sleet storm forced i r *�•• o• _"'" ."�Iti, ,.cii
postponement for yet another week. *"`.._ • "f 1 - --1.--1't '',"'
Finally, at 8:10 on the morning of °o 0 j
March 7,the line with the Rural ^'°`;- ,, i t"
Cooperative Power Association was
severed. Kehne Electric brought in 11.,
twenty outside electricians to help the
local crew with the changeover. By -, -t
9:30 a.m., the diesel engines were �K w,VEw.MINNESOTA
providing power to Elk River. Three 6 Y , Me °°
f �
hours later, electric service was also -" ` _ `" ''°'°
returned in Zimmerman,Dayton, and Diesel engines in 1948
surrounding rural areas. "For the first (Elk River Municipal Utilities)
time in nearly thirty years,"the
59 See Appendix A for the resolution creating the commission.The quote is from"Water,Light and Building
Commission Formed Locally,"Sherburne County Star News,July 10, 1947.
60"Financial Statement,Municipal Water,Light&Power Commission,"in Sherburne County Star News,March 4,
1948;William Patenaude,"Record of Elk River Power Plant including the Fifth Expansion to Original Plant,"typed
memorandum dated 8/14/72,in the files of the Elk River Municipal Utilities;Transcript of hearing for tax
abatement,4;Seelhammer and Mosher, Growth of Sherburne County,493-94.
86
Sherburne County Star News reported, `Elk River is entirely on its own in the matter of electric
power."An open house in April gave the community a chance to view the new facilities.61
The Utility's independence from outside power sources was short-lived,however: by 1951,
increased demand forced the Commission to consider alternatives for additional supply.
After debating the purchase of another generator, the Commission elected instead to again obtain
electricity from the RCPA through the Anoka County Cooperative, signing a three-year contract
with a two-year renewal option. Ironically, the power was produced in Elk River by a new
RCPA coal-burning plant, outfitted with two 11, 500-kilowatt steam-generating units. Elk River
anticipated purchasing 2.5 million kilowatts per year.62
Because of the perpetual shortage of capacity,the Utility was committed to maintaining the
hydroelectric plant, even though it provided a relatively small amount of power. In the early
1950s, 36-inch-wide sheets of 3/8-inch steel replaced timber flashboards washed away by a
spring flood. The top edge of the new flashing was reinforced by angle irons;pipes served as
bracing on the downstream side.63
This period also witnessed a change in oversight of the Utility's operations. Superintendent
George Wombill died unexpectedly in 1952, and was succeeded by his assistant, Richard Halter.
Halter had begun working for the Utility as a lineman and meterman in 1928, moving to the
power plant in 1933. As a result, he was extremely familiar with the strengths and weaknesses of
the existing system.64
This proved useful for the Commission's financial, strategy in the early 1950s. By maximizing
the electric power plant's existing potential and buying additional power rather than increasing
capacity, the Commission focused on reducing debt from the utility's purchase and expansion. In
1954,the Commission prepaid a bond issue of$70,000, on which payments were scheduled to
start in 1956 and continue through 1963. This decreased the Utility's overall debt to $170,000.
This relatively low balance meant that it could reasonably incur more debt for improvements. In
addition to adding another engine to the power plant, the Utility wanted to put unsightly
distribution lines underground in the business district.65
It also had to deal with under-capacity in the water supply, which forced the village to enact
lawn-sprinkling regulations in 1951. A new rotary centrifugal pump, installed later in that year
by the Bergerson-Caswell Company of Minneapolis, could handle 500 gallons per minute,
replacing a 300-gallon-per-minute pump. The new pump was only used when demand was high.
Otherwise, water was supplied by an older pump rated at 175 gallons a minute. Together,these
61 "Heavy Snow Follows Rain and Sleet Here,"Sherburne County Star News,March 4, 1981;"Changeover to New
Electric Plant Done in Record Time,"Sherburne County Star News,March 11, 1948.
62 Seelhammer and Mosher, Growth of Sherburne County,503,529;Elk River Municipal Utilities Commission
Minutes,September 10, 1951; United Power Association:Story of a Rural Electric Cooperative, 13.
63"Work on Dam Completed,Lake Raised,"Sherburne County Star News,n.d.;interview with Russell Anderson,
conducted by Weber,August 19, 1993.
64"Utilities Continues Tradition of Service It Started Here in 1916,"Sherburne County Star News,c. 1958;
Seelhammer and Mosher, Growth of Sherburne County,493.
65"Utilities Group to Pay Off$70,000 Bonds,"Sherburne County Star News,c. 1954;"Utilities Liquidates$70,000
Bond Series,Saves$6,000 in Interest,"c. 1954.
87
pumps were"expected to be able to meet any and all emergencies in supplying water to Elk
River village for many years to come,"according to a newspaper report.66
The pumps were overwhelmed,however,by the boom of the 1950s,when population within
village boundaries increased by 26 percent, and the township grew by 44 percent. This surge
necessitated an overhaul of the water supply system by 1960. The $190,000 improvement project
included a new 100,000-gallon water tank, hundreds of feet of water mains, an iron and
manganese removal facility, and a new 40-horsepower water pump with a capacity of 650
gallons per minute.67
The community's growth also challenged the electric system. The problem was compounded by
increased per capita use of electricity. Postwar prosperity filled new homes with lights, television
sets, toasters, refrigerators, and other appliances. Offices gained air conditioning, copying
machines, electric typewriters, and other equipment powered by electricity. In response, the
Utility upgraded lines to handle heavier loads. In 1957, for example, the Utility tripled the
capacity of lines in Elk River's business district by replacing heavy copper wire with aluminum
cable. Although the lines were not buried, as initially hoped,the $19,400 project rerouted most
lines behind buildings where they were less visible. New lines also stretched across the
Mississippi River. The lines were supported by modern insulators designed to reduce static
electricity,which interfered with radio transmission. Planning for the project was mostly done
in-house by Utility's staff. The installation was completed by the Donavan Construction
Company.68
The new lines, in turn, demanded more power than Elk River's system could produce. In the
early 1960s, a reporter noted that"the existing equipment at the municipal plant has not been of
sufficient capacity for some time to meet maximum loads."One solution might have been to
merge with a larger operation,but the Commission was determined to keep the Utilities
independent. It rebuffed a purchase offer from Northern States Power Company in 1958.
Instead, the Commission began investigating the cost of a new engine and generator. It also
considered purchasing more power from the RCPA.69
In the final analysis, the greatest long-term benefits appeared to be gained by expanding
generating capacity. On March 6, 1961, the Commission voted to buy a dual-fuel 2,500-kilowatt
engine from Cooper-Bessemer for$400,785. The recent installation of a natural gas system in
Elk River made this fuel available in large quantities for the first time. Compared dollar for
dollar, natural gas could produce twice as much power as diesel. The new engine could be
switched to diesel, however, if the gas supply was restricted or grew too expensive. The Utility
anticipated saving about $500,000 over ten years, which would completely pay back the
investment in equipment and plant expansion. The engine's useful life was estimated to be
twenty-five years. Since the engine was most efficient under a high load,the Utility planned to
66"New Rotary Pump to End Water Lack,"Sherburne County Star News, [1951?].
67 Population statistics are from published reports of the eighteenth federal census. See also Elk River Municipal
Utilities Commission Minutes,March 3, 1951;"New Rotary Pump to End Water Lack";"Utilities Reports$190,000
in Water Works Improvements in'60,"Sherburne County Star News,c. 1960.
68"New Distribution System Increases Electric Capacity,"[1957].
69 Elk River Municipal Utilities Commission Minutes,March 4, 1958,May 6, 1958,and March 6, 1961;"Utilities
Plans Purchase of 2500 KW Generating Unit,"Sherburne County Star News,c. 1961.
88
continue purchasing power from the RCPA for off-peak periods, as well as for emergency needs.
The newspaper observed that by having the added production capacity, "the Municipal Utilities
will remain in a favorable bargaining position for wholesale power."Associated Consultants was
retained to plan the building expansion. The Paul A. Laurence Company, a Minneapolis
contractor, worked on the necessary modifications to the utility building. H. R. Nichols of Saint
Paul installed piping for the new engine. The Electric Motor Service Company of Minneapolis
supplied the generator and completed the wiring. The project was financed by the sale of
$490,000 of revenue bonds.70
In addition to the pressures of keeping up with demand, the Utility faced challenges from Mother
Nature. In the winter, snow and sleet dragged down lines. Ice on the dam's flashboards had to be
removed to deter structural damage. Spring floods tormented both the dam and power lines. One
of the worst floods came in 1965. Ice flows broke off sections of the dam's flashboards, and an
uprooted tree snapped gate winches. Some power lines, including the feeder line to Dayton, were
down for over a week when erosion caused poles to lean and lines to break. The RCPA installed
an emergency feeder line from Anoka to serve the Dayton customers while the Elk River line
was being repaired.71
The 1965 flood again highlighted the vulnerability of Elk River's power service. In the following
May,the Utilities Commission entered into a ten-year interchange service agreement with the
RCPA, which was just beginning operation of a nuclear power plant in Elk River. The $22
million plant had been under construction by the Atomic Energy Commission since 1959.
Heralded as the way of the future,the plant was shut down in 1968 when the cooling system
developed a leak. The problem proved impossible to repair, and the reactor was demolished in
1974.72
While the RCPA's coal-burning plant in Elk River continued in operation, the failure of the
reactor strained the area's electric generating capabilities. This was particularly problematic for
Elk River,because of conditions in its 1966 contract with the RCPA. Because it gave priority to
member cooperatives,the Association required that any interconnecting system must have
enough generating capability to fully cover their load in case the Association was unable to
provide a sufficient amount of power. The RCPA's range of operations had significantly
expanded in 1963, when it entered into a joint venture with the Northern Minnesota Power
Association. The coops formally merged as the United Power Association in 1972.73
In the meantime,the Municipal Utilities continued to upgrade services.New lights brightened
Elk River's streets. Better maintenance trucks made crew work more efficient. Always lurking in
7°Elk River Municipal Utilities Commission Minutes,March 6, 1961,July 6, 1961,and July 25, 1961;"Utilities
Plans Purchase of 2500 KW Generating Unit";Financial statements for Elk River Municipal Utilities, 1949-1969,in
files of the Elk River Municipal Utilities;and"Gas Main Construction Goes Fast,"[1961].
71 Interviews with Evelyn Halter,Rodney Anderson,and Russell Bradway,conducted by Weber August 5, 1993;
interview with Russell Anderson,conducted by Weber on August 19, 1993;"Water,Water Everywhere," The Rural
Power Condenser,March-April 1965,9.
72 Elk River Municipal Utilities Commission Minutes, May 3, 1966;Hollenstein,Power Development in Minnesota,
19-20;"RCP A Gets Operating Authorization," The Rural Power Condenser,March-April 1965,4-5;"Shell
Cracking at Elk River,"May 17, 1974.
73 United Power Association, 16-17;interview with John Lundemoe,conducted by Weber,August 5, 1993.
89
the background,however,was the question of the company's role in the ever-changing utilities
industry.
New Challenges, More Growth
; By the late 1960s, demand for power was
w-'
A escalating at a rate of over ten percent per year
Because of the economics of scale, it was cheaper
for Elk River to purchase electricity than to
Nei
{ produce it Contract interconnection
of ' _ requirements, however, forced Elk River to
maintain sufficient generating capacity to operate
I independently no surplus electricity was
available. The Commission had little choice but
'� to examine the feasibility of enlarging the power
plant.74
In May 1969, Associated Consultants of
Minneapolis reported that additional capacity
could be accommodated at the site of Elk River's
existing plant. Superintendent Halter apparently
F decided that a new administration should oversee
the changes: he retired in 1970, and was replaced
f by William Patenaude. Patenaude was well
acquainted with the Commission,having served
_- as a Commissioner for twenty-one years.75
Superintendent Richard Halter with a new
Westinghouse fluorescent streetlight,ca. 1965. Bids were opened for a new engine-generating
These replaced mercury-vapor lights installed in unit on May 6, 1971. The Commission spent
the mid-1950s. almost two months deliberating the decision. They
(Evelyn Halter Photograph) ultimately awarded a contract for$708,113 for a
16-cylinder dual-fuel unit to the Worthington
Corporation,but only after sending Rodney Anderson to New York to inspect one of the
company's 5,000-kilowatt machines in operation. Anderson,who had worked as an operator in
the power plant since 1951, was promoted to plant manager at about that time.76
Installation of the engine and related equipment was anticipated within 360 days. Associated
Consultants was authorized to develop plans for nearly doubling the size of the power plant. By
the end of 1971, the Commission had accepted bids of$98,250 from Magney Construction
Company for the building expansion; $10,000 from Lemke Welding to install piping to provide
cooling water from the river; and$153,295 from Premier Electric Construction Corporation to
74 Ibid.
75"Utilities Continues Tradition of Service It Started Here in 1916."
76 Associated Consultants,"History of Installation of Worthington SWCGO-16 Dual Fuel Electrical Generating Unit
for the Municipal Electric Utility,Elk River,Minnesota,May 29, 1969-June 9, 1976," 1-3,in files of the Elk River
Municipal Utilities;Patenaude,August 14, 1972;Elk River Municipal Utilities Commission Minutes,July 1, 1971;
interview with Rodney Anderson,conducted by Weber,August 5, 1993.
90
provide General Electric switchgear. With the new equipment, the hydroelectric plant was
effectively retired: the switchgear did not include controls for the old turbines.77
The engine arrived by train in the summer of 1972. Two side-by-side flatbed trucks transported
the engine to the plant. Unfortunately,problems plagued the new operation from the start. In
addition to time and cost overruns by Worthington and the other contractors,the engine had a
cracked and leaking turbocharger, a faulty exhaust system, and damaged wrist pins,bearings,
and pistons. All in all, three years passed before the defects were fully remedied.78
By the mid-1970s, new power plants had come on line in the region, greatly increasing the
supply of relatively inexpensive power. Because power could be bought from larger networks
more cheaply than it could be produced on a small scale, Elk River's plant was maintained only
for auxiliary purposes. In 1978, Elk River joined eight other municipal utilities to for the United
Minnesota Municipal Power Agency, with members spanning the state from Grand Marais to
Willmar. Their union was intended to strengthen their position in negotiations with the UPA,
from which they all purchased power. To improve local distribution, the Utilities built new
substations in 1978 and 1984.79
The Utilities had been headquartered in a former city library for a number of years, sharing the
space with other city departments. In 1975, it expanded to occupy the entire building. A decade
later, it received a new garage/warehouse facility, erected by Elk River contractor John C.
Weicht and Associates for$101,372.80
Improvements were made to the water system as well. Contracts for a new well and related
facilities were awarded in 1974. Few additional changes were required by the water system until
1985,when the Commission hired Hydro Storage, Inc.,to erect a new water tank for over half a
million dollars.81
In addition to electric and water services, Elk River Municipal Utilities has engaged in a variety
of activities for the benefit of the community: erecting civil defense sirens, contributing to the
purchase of a new fire engine, putting up Christmas decorations,maintaining street and park
lighting, and wiring schools and businesses. The company also began marketing and installing
security systems in about 1990.
Supervision of the Utilities changed several times during the decade of the 1980s. William
Patenaude retired in 1980, and was replaced by Edson Stansfield. Stansfield remained only six
years. He was succeeded by William Birrenkott, who was trained in both electrical engineering
and business administration. This combination reflects changes in the utilities industry, which
has grown increasingly professionalized as technical and business operations become more
complex. In the eight decades since electric lights first glowed in Elk River and the nearly fifty
years since the Municipal Utilities was created, both the industry and the community have
77 Associated Consultants,"History";Patenaude,August 14, 1972.
78 Associated Consultants,"History."
79 Elk River Municipal Utilities Commission Minutes,January 4, 1978,and June 7, 1978.
80 Ibid.,March 1975,and May,28, 1985.
81 Ibid.,August 8, 1974,and July 1, 1985.
91
experienced phenomenal growth and change. The only sure prediction for the future is that these
trends will remain, and that the Elk River Municipal Utilities, which now furnishes power and
water to nearly 5,000 customers, will continue to evolve.
92
A History of Elk River Municipal Utilities: Part II
This section was completed for the Elk River Municipal Utilities Commission in 2015 by Rachel Peterson,Penny
Petersen,and Charlene K.Roise,Hess,Roise and Company
New Territory, New Leadership
The previous history of Elk River Municipal Utilities(ERMU)concluded that only one
prediction for the future was certain: both the utilities industry and the community served by
ERMU would grow and evolve. Over the past two decades,that projection has proven accurate.
As Elk River has changed, the services of ERMU have expanded and diversified along with it.82
The City of Elk River merged with Elk River Township in 1977 partly to strengthen its position
among other communities in central Minnesota. This merger also strengthened ERMU's
purchasing power with the United Power Association(UPA), which supplied it with electricity.
That same year, ERMU joined the United Minnesota Municipal Power Agency, further
increasing its ability to negotiate low rates with power providers.83
ERMU has long purchased at 17 A ,���s`
least a portion of its power _ .� a
� r
from outside sources. Post- =-— i� • _ \t"r
World War II increases in the �' �;��, ■►
use of large appliances = -
contributed to a rising demand ' 4 1:� "1 • Ill I . 24
for power that was too high u' 4, :i\ I , a r e -
for ERMU to meet on its own. ' .. ^; t ' t F`i ii vow
Beginning in 1951, the Elk 4dF�s>> ''°L's, 211 i I \it; ` , ;�
g g .
River Utilities Commission . '` .•',,`�� ;..- .i ^ ',h''
decided to purchase electricity _
through Anoka County
Cooperative and the Rural t
Cooperative Power `,' r 'c,4444.,:,,.:
frAva Association. To improve local , , , << r(, •. rf ° x.,.. �®
distribution,two new . ,�,1 f,w .tom.,** :,y> ,.,, t �,, .._,fiR9'';
substations were constructed __....,... 99d ,.. ..•a1 Asa'::=.a.rxx' ° .°F
in 1978 and 1984.84 Power Plant Substation
(Elk River Municipal Utilities)
ERMU is a municipal utility
and is therefore connected to the City of Elk River. The relationship between the two entities has
been a complex one. ERMU is owned by the city and governed by a commission,with the
commissioners appointed by the city. As a municipal entity,ERMU does not pay property taxes.
In lieu of taxes, ERMU and the city agreed that ERMU would pay a flat sum to the city every
year.
82 Hess,Roise and Company(hereafter HRC),"A History of the Elk River Municipal Utilities,"24.
83 Ibid.,23.
84"Elk River Municipal Utilities Celebrates Fifty Years of Service to Elk River and Surrounding Areas,"Elk River
Municipal Utilities(hereafter ERMU)files;HRC,"A History of the Elk River Municipal Utilities,"23.
93
This financial structure has led to tensions between ERMU and the city. For example, in 1987, a
property tax levy limit left the city anticipating a budget deficit. ERMU had earned a profit from
increased demand for services as the city grew. The city approached ERMU and asked that
ERMU's $12,000 annual payment be increased to 5 percent of its retail sales, a sum of$163,000
that year. Since ERMU had begun purchasing electricity, it was concerned with maintaining
competitive rates and General Manager Bill Birrenkott feared that such a large payment to the
city would force a significant rate increase. The city responded that, much like a municipal liquor
store, ERMU was an enterprise to fund the city government and its responsibilities were to the
city as well as its customers. The two sides reached a compromise, with ERMU increasing its
payment to $72,000. The city coffers were still short,but by much less than they would have
been otherwise. Tensions like this have arisen from time to time,but in general, ERMU and the
City of Elk River maintain a productive working relationship.85
During 1991, ERMU continued to expand its service area. General Manager Birrenkott
spearheaded an initiative to extend its reach through a contract with Anoka Electric Cooperative
for"the orderly transfer of service territory between the utilities,"meaning that ERMU would be
able to expand its service area to include more customers in and around Elk River.86 Negotiated
just before a large housing boom, ERMU was able to purchase rural service areas that have since
been developed, adding greatly to ERMU's customer base. ERMU installed an additional
substation in November 1991 to provide electricity more effectively. To further increase demand,
ERMU loaned the city$55,000 to purchase lots in Industrial Park to attract new businesses.87
In April 1991,the Elk
River City Council denied _ TT//y}
a permit application by
ERMU to expand its k 114 � ,�
industrial building on the ,. �� ;
close to residences and"would intensify the use"to the point of nuisance. Jim Simpson, the
chairman of the Utilities Commission, was infuriated by the denial, calling it"two-bit politics."
The addition was approved after the commission revised its plans to be more compatible with the
adjacent neighborhood. The addition was clad in stucco,with a line of trees planted to minimize
the visual impact of the industrial building.88
In 1992, ERMU invested time and money updating infrastructure, soliciting bids for a new
building at the former city hall site, a new well, and a treatment facility. An eighteen-megawatt
substation was planned for the Industrial Park site to back up current operations and also serve
the future demands of a growing Elk River.89
ERMU completed a study in September 1992 to assess how its rates compared to neighboring
towns. The study concluded that in relation to other utilities, ERMU was charging much less for
water and water connection fees. In fact, the current water connection fee was not enough to
offset installation costs and ERMU was losing money when water service was extended to new
customers.90
In response, in 1993, ERMU
increased water connection ��`
fees, as well as other fees it '' '� �,410i r ��` K
charged developers for new €` 0 ' ' 54' " , r1 I 1 4 ■.' , '
extending services to new " ��� �' �';'�° a;, �' ;:p,44,-. ;
plats. Revenue was earmarked ,0
for future water towers and F. ` ' 'Y ��
N � 1 M
wells to serve new a i' aL a,. - � r '
developments like Hillside ; ",'' ' � ,� , 11; t
Estates. For example, ERMU t .. ;
purchased a site for a tower, r.,',--, , , +
s r+ ��,%s < �
well, and service station from �f , - 1:,,`
r ,
the city for$10,000 to service � . � �
Hillside Estates.91 ' ''3,'`
ERMU consolidated its ;, ;`' `�
management structure in 1993 �'
and replaced individual "� � � ti r`
department superintendents
with a general manager, who Bill Birrenkott
was responsible for governing (Sherburne County News, undated clipping
the organization as a whole. at Elk River Municipal Utilities)
Bill Birrenkott was the first
88"City Stuns Utilities,"Elk River Star News,April 17, 1991;Don Heinzman,"Furor over Utilities Dispute Is
Defused,"Elk River Star News,April 24, 1991.
89 Elk River Municipal Utilities Commission Minutes,May 5, 1992;Bill Birrenkott,"Elk River Municipal Utilities,"
The Current: The City of Elk River Newsletter 3 (August 1992).
9°Elk River Municipal Utilities Commission Minutes,September 8, 1992.
91 Ibid.,April 6,and September 7, 1993.
95
person to serve as ERMU's general manager, and he is credited by the current general manager,
Troy Adams, with laying important groundwork to secure ERMU's long-term growth,
particularly negotiating the transfer of service territory. Trained both as an electrical engineer
and a business administrator, Birrenkott was uniquely equipped to oversee a municipal utility in
an industry that was becoming increasingly complex.92
By 1994, as ERMU and Elk River continued to expand,new storm sewer lines were needed. The
cost was funded, in part, through rate increases. Residential customers paid an additional two
dollars each month and commercial, industrial, and multi-family properties paid an additional
fifteen dollars per acre. Owners of undeveloped land saw an increase of fifty cents per acre per
month. In addition, the City of Elk River issued$1 million in bonds for the project in August,
with another$1 million following later in the year.93
With the rapid growth of Elk River,
_ r, ERMU strove to stay ahead of real estate
developers, especially in areas where new
infrastructure would be needed. City
engineer Terry Maurer recommended the
construction of a one-million gallon water
tower at Gary Street that would be
sufficient to serve that neighborhood for
another twenty years. Also anticipating
growth in the northwest part of the city,
Maurer recommended a 500,000 gallon
tank be built there by the end of the
decade."
In 1995, a new housing development was
planned for the Meadowvale area that
required a new well and water tower. In
1996, ERMU reached an agreement to
4 . I purchase the land north of Meadowvale
School for the well, filter plant, and water
tower.95
Tension over the amount that ERMU
Gary Street Water Tower contributed to the city in lieu of taxes
(Elk River Municipal Utilities) emerged again in 1994. In response,the
Utilities Commission voted to increase
92 Elk River Municipal Utilities Commission Minutes,July 30, 1993;HRC,"A History of the Elk River Municipal
Utilities,"24;Troy Adams in conversation with Rachel Peterson,June 2,2014.
93 Joni Astrup,"Elk River Utility Bills Expected to Rise,"Elk River Star News,July 20, 1994;ERMU,"Utilities
Commission Meeting,"August 9, 1994.
9a Elk River Municipal Utilities Commission Minutes,August 9, 1994.
95 Ibid.,January 10, 1995,and July 9, 1997;Adams interview.
96
ERMU's contribution to 3 percent of the revenue generated by Elk River customers. In addition,
ERMU provided free electricity for all city buildings that did not generate revenue.96
Rapid Growth—Establishing and Implementing Priorities
The first half of the 1990s was characterized by infrastructure projects and changes in personnel.
As ERMU moved into the second half of the decade, it began to focus on long-term planning,
and in 1996, the Utilities Commission set priorities for improvements. At the top of the list was
the need to address the water and electric departments as more territories were scheduled to be
transferred from the AEC to ERMU. ERMU decided to work with the city administrator to
develop marketing strategies to encourage future growth.97
Writing out priorities helped ERMU plan for this growth and also identify operational
weaknesses. Its human resource management practices, for example, did not follow industry
standards. To address this problem, ERMU prepared a job description for each position that
clarified responsibilities and the management structure. A performance evaluation system, a
policy and procedures manual, and a safety program were also established.98
Several items in the priority plan related to upgrading electric and water utilities. This led to a
project to map the electric utility's underground and overhead facilities, as well as update the
water utility maps and plan a regular maintenance program for the system.99
Some smaller items were also priorities. These included acquiring a new phone system that
allowed calls to be transferred between the office and the power plant; purchasing a new truck;
and computerizing inventory and purchasing systems.'°°
High priorities for the water department were a series of valve and hydrant installation projects,
particularly those associated with state highways or roads scheduled for major reconstruction.
Updating older hydrants and valves, and those located on city roads that were not slated for
repair,ranked second. Upgrades in residential areas were third.1o'
In March 1996, as ERMU was in the process of identifying its goals for the future, Bill
Birrenkott retired as general manager. The Utilities Commission explored an alternative to hiring
a new general manager,retaining Emmer and Associates to evaluate the pros and cons of
contracting with AEC for on-site management services as needed, with most staff still employed
by the Utilities Commission. Emmer's study concluded that ERMU should retain the existing
general manager structure. The commission then hired the Brimeyer Group to conduct a search
for a new general manager. The consultant interviewed staff members to develop a position
profile and helped place job announcements, screen applicants, and interview candidates. At the
96 Elk River Municipal Utilities Commission Minutes,December 6, 1994.
97 Ibid.,September 11, 1996.
98 Ibid.
99 ERMU,"Utilities Commission Meeting:Priority for Valve and Hydrant Replacement,"February 1996.
too Elk River Municipal Utilities Commission Minutes,September 11, 1996.
lot ERMU,"Utilities Commission Meeting:Priority for Valve and Hydrant Replacement."
97
conclusion of this process, Bryan Adams was selected for the position. He assumed the post on
August 19, 1996.1°2
Rate studies were conducted regularly as ERMU sought to be competitive with other local
providers. After a 1996 study found that ERMU rates were higher than those of AEC, ERMU
promoted lower commercial rates to attract businesses to Elk River, which would broaden the
city's tax base and expand employment. ERMU also worked to renegotiate its contract with AEC
and UPA to be able to offer more competitive rates.l03
Increasing demand to the northwest led ERMU to conduct an engineering study in 1996 that
identified potential sites and estimated costs for a well, filter plant, and water tower to serve that
area. The study also evaluated a proposed water main extension that could delay the need for a
sixth water tower. Other infrastructure projects in that year were necessitated by obsolete
equipment. The eastern substation was critically failing and removed from the operating system.
ERMU's computer network file server reached its capacity, so the system was upgraded. Roof
repair was required at the King Street building,which was also beginning to show signs of wear
and age.104
ERMU also began an apprenticeship program for electric line workers in 1996. The program
developed skills, knowledge, and abilities so that these workers could advance to the journeyman
position. Journeymen who wanted to improve their skills were also encouraged to participate.
Education opportunities were extended to other workers through a program that offered up to
$2,000 toward tuition.105
In comparison to the preceding year, 1997 was relatively calm. A hot, dry summer led to
sprinkling restrictions, which ERMU had been authorized to implement by a 1995 city
ordinance.Water shortages were eased when the Minnesota Department of Natural Resources
(DNR) authorized an appropriation of 200 million gallons of water from four wells for Elk
River's public water supply.The DNR, however,noted that significant amounts of water were
being used for sprinkling lawns and urged Elk River to start a public education program about
water conservation, leading ERMU to develop brochures on that subject.106
In 1997, ERMU celebrated its fiftieth anniversary of serving Elk River, Otsego, Dayton, and
surrounding rural areas as a public power provider. In those fifty years, service had grown to
include 6,000 electric and 2,000 water customers.107
102 ERMU,"Special Meeting of the Elk River Municipal Utilities Commission,"March 27, 1996;Anoka Electric
Cooperative,"Utilities Management Services Agreement,"April 9, 1996;ERMU,"Special Meeting of the Elk River
Municipal Utilities Commission,"August 5-6, 1996.
103 Elk River Municipal Utilities Commission Minutes,March 8, 1996.
104 Ibid.June 11,July 9,September 11,and October 8, 1996.
105 Ibid.,November 12, 1996.
106 Ibid.,July 11, 1995,January 12 and July 9, 1997;letter from John Stine,Administrator,Minnesota Department
of Natural Resources,to Robert J.McCartney,ERMU,August 13, 1997;ERMU archival files.
107"Elk River Municipal Utilities Celebrates Fifty Years of Service to Elk River and Surrounding Areas,"ERMU
files.
98
To plan for the expansion of the water department, ERMU undertook the Springsted Study,
which included a ten-year projection of the utility's financial capacity. After considering
anticipated revenues, expenses,bonding capabilities, and fees,the commission decided that rates
needed to increase in order to ensure funds for future growth)"
In 1998,ERMU approved an LED light installation project as an initiative for energy
conservation. Previous proposals for LED lights were denied because commissioners had been
concerned about the significant upfront costs. This time, the case was made that the LED fixtures
would be more economical to operate than incandescent bulbs, and it was estimated that the
installation costs would be recouped in two years. This gave the commission the confidence to
approve the project.1°9
Also in that year, more infrastructure construction projects were given the green light. A joint
project between ERMU and UPA for a new gas turbine was approved by the commission. The
turbine was owned by the city, with UPA taking care of the planning,permitting, acquisition,
and operation staff for the project. The turbine served as a peak load generator, operating only
when demand was high.
In 1999, UPA merged with the Cooperative Power Association(CP)and became Great River
Energy(GRE). Since ERMU had been purchasing electricity though UPA, its contract was
transferred to GRE. An"all requirements"purchase power agreement was in place between GRE
member cooperative AEC and ERMU that provided a pass-through arrangement between GRE
and ERMU. This new contract was immediately beneficial to ERMU, with its wholesale power
rates decreasing by 7 percent.l 1°
" .
1
•
• glaii r.
r
r.'
/ low mum
GRE NOM
AT ��
■16[u runu;l rr�rrrr
Great River Energy Elk River Campus
(Great River Energy)
108 Elk River Municipal Utilities Commission Minutes,January 13 and February 10, 1998.
109"Resolution 98-125,A Resolution of the City of Elk River,Resolution Approving the Exercise of Powers Under
Minnesota Statutes,Chapter 453,Respecting a Certain Electric Power Generation Project,"ERMU files;Bryan
Adams to the ERMU Commission,letter,December 2, 1998.
11°Elk River Municipal Utilities Commission Minutes,January 12, 1999.
99
Though ERMU benefited from the UPA/CP merger, restructuring within the industry led to
restrictions on how public utilities could use bond money. This threatened to dramatically
increase taxes on ERMU. A federal bill, HR 721, was up for vote in 1999 to exclude public
utilities from the restrictions. The bill amended the definition of"private business use"bonding
to exclude"permitted open access transactions."111 This would allow for projects like the
construction of electric facilities to be funded by bond money without increased taxes. If the bill
was not passed, these restrictions would severely restrict how ERMU could use its bond money,
which would limit expansion and restrict the quality of service. General Manager Bryan Adams
wrote to Representative James Oberstar advocating for ERMU and other public utilities,noting
that increased taxes would force ERMU to raise rates, leading to a loss of customers. He also
argued that the bill protected ERMU's decision-making power in a changing industry. Adams
lobbied for HR 721 because the legislation would give community-owned utilities power to
improve services, and prevent private power companies from taking over their service area.
While the bill was referred to the House Ways and Means Committee in February 1999, it did
not return to the floor for a vote.112
A New Millennium
In January 2000,the ERMU Commissioners heard updates on the gas turbine project as well as a
landfill gas generation project with Sherburne County. Other projects in development included
the closing of Well No. 6. This project was more expensive than anticipated because of
engineering and sump pump fees, which added$10,000 to the project cost. 113
ERMU developed new long-term programs as its service area grew. One major initiative,
authorized by the commission in March 2000, was the Wellhead Protection Plan(WHPP), which
sought to seal unused wells and ensure that active wells met safety standards. The WHPP
outlined a"protection area"in which contaminants from tainted wells would reach Elk River's
aquifer within twenty years. Within this area, ERMU educated the public on maintaining safe
wells and identifying abandoned wells on their property to prevent contamination of the aquifer.
The commission also held public meetings about the WHPP program and brought in
professionals from the Minnesota Rural Water Association to answer questions. Implementation
of the WHPP was initially scheduled to last ten years,but was extended to twenty years in
2012.114
'11 "H.R. 721—Bond Fairness and Protection Act of 1999,"http://beta.congress.gov/bill/106th-congress/house-
bill/721 (accessed April 21,2014).
12 Bryan Adams to Representative James Oberstar,letter,n.d.,ERMU files;"H.R.721—Bond Fairness and
Protection Act of 1999."
13 Elk River Municipal Utilities Commission Minutes,January 11,2000;John Linc Stine,Administrator,Minnesota
Department of Natural Resources,to Robert J.McCartney,ERMU,letter,August 13, 1997;ERMU archival files.
114 ERMU, Wellhead Protection and Conservation(Elk River:published by the company, [2000]);Elk River
Municipal Utilities Commission Minutes,March 14 and April 11,2000;ERMU,"Annual Report,"2012,n.p.
100
In July 2000, the commission
authorized the acquisition of 4/0 land fora new substation and .�
Well No. 7 to keep step with
expansion in east Elk River. It '
turned out, however, that the
land purchased for the well was • a
in a flood plain and was
inum
therefore too unstable to "`
support the weight of a water
tower. The commission needed
to find a new site. The city park
was the least expensive option,
but Jim Tralle,vice chair of the
Commission, felt that it was not
a politically acceptable
location. In the end, the project
exceeded the original budget by
$224,000. At this same time, Filter at Well No 7 Building
Elk River was expanding to the (Elk River Municipal Utilities)
north, and in August 2000,
ERMU purchased a site for
another substation."'
In 2004, ERMU's cost for wholesale power rose by 8 percent. To cover this increase, ERMU
levied a$7 per month electric service charge. It also increased water rates. This has the added
benefit of discouraging excessive lawn watering.116
ERMU continued to expand its service area in 2004 and added 104 new customers through
territory transfers. Electric service also grew to include several more developments, including
Woodland Hills, Twin Lake Estates, Elk Ridge Center, Prairie Oaks, Woods of Hillside Fourth,
Trott Brook Crossings, and Trott Brook Farms Nine and Ten. To serve these new customers, 570
electric meters were added to the system and the amount of purchased electricity increased by 4
percent. In a 2004 rate survey, ERMU was determined to be"very comparable"to similar
utilities.''
In its 2004 annual report, ERMU set goals for the coming year. These included continuing to
plan for and predict future physical and financial needs, exploring different strategies to offset
rate increases through GRE and Connexus Energy(formerly AEC), improving marketing efforts
for conservation programs and security systems, and supporting new sustainability initiatives.'18
15 Elk River Municipal Utilities Commission Minutes,July 11 and August 8,2000,and January 16,2001.
116 Minnesota Municipal Utilities Association, The Resource,February 2004.
117 ERMU,"Annual Report,"2004.
118 ERMU,"Annual Report,"2004.
101
As ERMU expanded, it
frequently evaluated its office
space to ensure that it was
still adequate. ERMU offices
were long housed in the city
3 municipal building at 322
King Avenue, which had also
served as a fire station,jail,
"y rz m and library over the years.
J _ Until 1975, ERMU only
_ 111 occupied a portion of the
I i
building,but that year, its
offices expanded into the
entire building. A 1996
assessment found that the
Former ERMU Office at 322 King Avenue building continued to meet
(Elk River Municipal Utilities) ERMU's needs. That
conclusion was reexamined
two years later when Midwest Construction invited ERMU to move to its new office building at
the corner of King and Main streets. The commission decided that ERMU's current space was
still adequate, so the cost of moving could not be justified.119
Discussion of relocating the ERMU offices began again in September 2000. Bryan Adams,who
was general manager at that time, reported to the commission that ERMU would outgrow its
current location within five years and suggested it begin looking for a new location. Council
Member John Dietz noted that he"would like to see the Utilities stay in the central business
district as their business generates a great deal of traffic in the downtown business district."120
In 2001, discussion on a new office space intensified. Several different sites were considered and
ERMU decided in June to bring an architect on board to draw possible layouts for a building on a
downtown site that had been occupied by First National Insurance. At the same time, a new city
hall complex was being planned. Since the project was in its early phases, Dietz recommended
that ERMU think about moving into that building. The city council supported the idea and told
ERMU that it could move into the new city hall at no cost, with the space custom-designed for
its needs. A central office would allow the city and ERMU to share employees, which would
save money and increase efficiency. In addition,having ERMU's offices close to other city
services would offer contractors and residents one-stop shopping. The one drawback to this
arrangement, however, was that it would take ERMU's offices out of downtown, and the
commission feared that it would appreciably diminish traffic to downtown businesses. With the
issue undecided,the city went forward with construction, leaving space for ERMU if it decided
to move into city hall. After continued concerns about moving ERMU's office out of downtown
19 Jessica Quanrud,compiler,"Back When-75 Years Ago,"Elk River Star News,July 9,2003;John Dietz,
interview by Rachel Peterson,June 5,2014;ERMU,"Regular Meeting of the Commission,"September 11, 1996,
and July 14, 1998.Dietz spoke to a long-time Elk River resident who recalled that ERMU had occupied the
Municipal Building"as long as she could remember"(Dietz interview).
120 Elk River Municipal Utilities Commission Minutes,September 13 and 25,2000.
102
and the potential economic impact of that decision,the commission called a special meeting. Jim
Tralle argued that the economic benefits to ERMU from moving to city hall far outweighed any
objections, and his motion to relocate to this space passed 2-1.121
In May 2004, ERMU offices moved from 322 King Avenue to the new city hall on Orono
Parkway. In the next year, ERMU's former building was razed to make room for more parking
as a part of a downtown redevelopment effort.122
Pr I
ERMU Office at 13069 Orono Parkway
(Elk River Municipal Utilities)
Two years later, ERMU was rocked by a scandal. Office manager Patricia Hemza pled guilty to
four counts of felony theft by swindle that occurred between 1997 and 2005. ERMU was alerted
to the theft when it was fined by the IRS for misfiling W-2 forms. Hemza served a prison
sentence of one year and one day at the Sherburne County Jail and had to repay 107 percent of
the money she had stolen and reimburse the city for attorney fees and audits. As a result of this
experience, ERMU tightened its accounting procedures.123
121 Elk River Municipal Utilities Commission Minutes,September 12 and December 11,2001.
122 ERMU,"Fast Facts on the History of Elk River Municipal Utilities,"ERMU website,
http://elkriverutilities.com/pages/history(accessed March 26,2014);Joni Astrup,"Downtown Project Poised to
Begin,"Elk River Star News,March 23,2005;"Council Approves Quote to Demolish Utilities Building,"n.p.,n.d.,
at ERMU files;Joni Astrup,"Elk River Municipal Utilities Building Demolished for Lot,"Elk River Star News,
May 4,2005.
123 Jake Muonio,"City Utility Refunded Stolen Money,"Elk River Star News,April 12,2006.
103
Energy City, Sustainability, and Conservation
In the fall of 2005, Elk River decided to brand itself as the state's "Energy City."Back in 1997,
Elk River had been designated as an energy city by the Minnesota Environmental Institute. In
2007, Elk River's newly formed Energy City Commission trademarked Elk River as"Energy
City"with the Minnesota Secretary of State's Office. It also received a federal trademark in
2008. With this initiative, ERMU made a commitment to responsible resource management. This
was accomplished through innovative initiatives, including a landfill gas-to-electricity facility,
geothermal heat pumps, and garbage-derived fuel. An existing Action Committee for Energy was
replaced by the Energy City Commission, which was responsible for developing the Energy City
program and commenting on energy-related issues facing the city. Thirteen different
demonstration sites were opened for tours as an Energy City program. The sites were intended to
educate the public and help shape the way young people grow up thinking about energy.124
Energy City was funded by the city and ERMU and cost$57,000. ERMU found it more difficult
to secure money for conservation programs than for infrastructure investments, and some were
skeptical of the benefits. Elk River mayor John Dietz, for example, was not sure that it was worth
the cost. He called it a"hard sell"because he could not see how it benefitted taxpayers.125
Regardless, ERMU remained committed to sustainable energy and conservation programs in the
new millennium. In 2005, it developed three "Energy Houses"to educate the public on the latest
renewable energy technologies. These houses featured new technologies like poured-in-place
insulated basement walls, structurally insulated wall and roof panels, geothermic heat pumps,
and electric off-peak heated basement floors. Many of the building materials used to construct
the energy houses were made from recycled sources.126
ERMU supported new sustainable energy sources, hosting a wind turbine along Highway 169 in
2005. The turbine did not produce much energy because it was sheltered by the hilly,
surrounding geography. It was,however, in a highly visible location and raised awareness of
wind energy.127
Expanding on the 1998 LED project, all traffic signals in Elk River were equipped with LED
bulbs in 2005. The new bulbs were brighter, lasted five to ten times longer, and were more
energy efficient,using only 10 percent of the power required by incandescent bulbs. The project
was met with hesitation because of the high up-front costs—ten times that of incandescent
lights—but the commission approved the project based on long-term benefits.128 In 2008, ERMU
expanded its LED light installation project. An LED streetlight was purchased by Connexus and
installed by ERMU as a test. Benefits of LED streetlights included lower lighting costs and
reduced energy usage, which resulted in lower carbon-dioxide emissions. As with the LED
124"From Wind Turbine to Traffic Lights,Focus Is on Energy,"Elk River Star News,October 12,2005;"Energy
City,"http://www.elkrivermn.gov/index.aspx?NID=739(accessed April 15,2014);T.W.Budig,"Legislation is on
the Way to Make Elk River`the State Energy City,'"Elk River Star News,February 20,2007.
125 Joni Astrup,"Energy City Comes under Budget Scrutiny,"Elk River Star News,July 20,2011.
126"From Wind Turbine to Traffic Lights,Focus Is on Energy."
127 Ibid.
128 Ibid.
104
stoplight program, LED streetlights had a high initial cost that was difficult for some
commissioners to rationalize.129
In 2008, ERMU and the City of Elk River launched Project Conserve, a new program to promote
energy conservation. The program helped the test group of forty participants to reduce their
energy consumption. Low-flow showerheads reduced water usage while compact fluorescent
lights did the same for electricity. Soil moisture probes helped participants prevent over-watering
their lawns and"Kill-a-watt"meters identified how much electricity their appliances used.
Participants' homes were also tested to determine areas of heat loss. After one year,participants
had reduced their electricity usage by 14 percent and water usage by 18 percent. The program
was extended through 2010 because of the positive results. The project goals were to reduce city-
wide electric and water usage by 25 percent, gas by 10 percent, garbage by 25 percent, and
transportation fuel by 25 percent over five years. For Project Conserve, the City of Elk River and
ERMU won the Green Project Award from the Recycling Association of Minnesota. ERMU also
gave rebates through the Conservation Improvement Program to customers who tuned-up their
air conditioners,purchased Energy Star appliances,planted trees, and made other
improvements.130
Project Conserve's budget came under review in 2011. ERMU gave $25,000 to the program and
the city gave another$10,000,but Council Member Nick Zerwas voted against approving the
funds feeling that the initiative should be wholly funded by ERMU. Other council members
disagreed and the program continued as a joint venture.131
In conjunction with efforts by ERMU,the City of Elk River was an active steward in promoting
conservation. In June 2012, Elk River was one of only seven municipalities in Minnesota to be
recognized as a Step 2 GreenStep City, a program of the Minnesota Pollution Control Agency in
collaboration with the League of Minnesota Cities, the Minnesota Department of Commerce, and
four Minnesota nonprofits. It identified twenty-eight best practices to help cities achieve
sustainability goals focusing on cost savings, energy use reduction, and innovation.132
Landfill Gas-To-Electric Generation Facility
The Elk River landfill had long been burning off the methane gas that was naturally produced by
decomposing garbage. The landfill management team, along with ERMU and Sherburne County,
decided to turn that resource into useable energy. Following in the footsteps of other landfills
around the country, ERMU constructed an electric generation facility at the Elk River landfill.133
129"Bright Idea?Maybe,"Elk River Star News,April 15,2008.
13°Joni Astrup,"Project Conserve: Savings Seen in Utilities,"Elk River Star News,November 25,2009;"Elk River
Municipal Utilities:2009 Year in Review,"at ERMU archives.
131 Joni Astrup,"Elk River Expands Project Conserve Program,"Elk River Star News,June 15,2011.
132 Joni Astrup,"Elk River Recognized as a GreenStep City,"Elk River Star News, June 29,2011.
133 Joni Astrup,"Landfill Gas to Electricity,"Elk River Star News,October 4,2000.
105
ERMU reached an agreement with
Waste Management for the land, and
for undertaking the engineering,
operation, and maintenance of the
site. Sherburne County funded the
project with the condition that an
educational center be added to the
'"• J; facility. The Saint Cloud Times
r s rl ._ i * IC reported that the Elk River landfill,
= which served Sherburne, Stearns,
and Benton counties, "could soon be
producing enough energy to power
Electric Generation Facility at the Elk River Landfill 1,500 houses."The plant's three
(Elk River Municipal Utilities) generators were anticipated to
convert the naturally produced
methane into nearly 19.7 million kilowatt hours of energy each year. According to ERMU
general manager Bryan Adams, who was instrumental in this project's development, it"makes
sense f o r Elk River Municipal Utilities . . . because it involves using a resource that would
otherwise go to waste."134
By 2002, after four years of planning,the generation plant was up and running, exemplifying a
successful collaboration between the private and public sectors. The 5,100 square-foot plant
housed three 800-kilowatt generators with room to add a fourth. The generators ran on landfill
gas, mainly methane and carbon dioxide from decomposing garbage. The gas was collected in
twenty-nine wells,compressed to remove moisture, filtered, and delivered to the sixteen-cylinder
engines. A composite liner of clay,
polyethylene lining, and sand
contained the gas and liquids 411/r(4"" „!
produced as the waste decomposed. .�
To trap the gas, the landfill was ...a ` 4.:
capped by a geomembrane of AN I I
compacted clay, soil, and ._ 1!
vegetation.13s i i, . .� : t
- -
0 The facility ran ahead of expectations ' I A., =. ="
by 2004,producing 102.174 percent I
of its projected output. This led to the
decision to install a fourth generator Iva- ;,- a,
in 2005. When the new engine was `--- —
added, the plant was projected to
Landfill gas-to-electric engine room
generate enough electricity to cover (Elk River Municipal Utilities)
134 Elk River Municipal Utilities Commission Minutes,November 14,2000;Kirsti Marohn,"Landfill to Harvest
Methane for Energy,"Saint Cloud Times,November 30,2000.
135"The Facts:ERMU's Landfill Gas Electric Generating Plant,"at ERMU archive.
106
20 percent of Elk River's energy needs at that time. In 2009,the facility operated at over 98
percent of capacity. 136
In October 2012, a party was held at the facility to celebrate its tenth anniversary. The plant was
accustomed to playing host: in the ten years since it opened, it had accommodated more than 100
tours, and roughly 30 percent were international visitors. At the celebration, Betsey Wergin, a
member of the Minnesota Public Utility Commission who a decade earlier, as a Sherburne
County commissioner, had been involved in the effort to build the facility, explained that a
"diverse portfolio for energy is needed"because gas was becoming more expensive and solar
and wind power did not always generate significant amounts of energy. By 2012,the Elk River
facility was generating enough electricity to supply 2,500 residences.137
ERMU also obtained electricity from GRE that was produced from waste. Great River's "Refuse
Derived Fuel"involved a different process than ERMU's landfill gas-to-electricity plant:
combustible materials in garbage were dehydrated and shredded, then used to power boilers.
GRE's RDF facility annually converted 250,000 tons of garbage from Sherburne,Anoka, and
Hennepin counties into power.138
The Jackson Street Water Tower
The first municipally owned well in Elk River(Well No.1)was drilled by the McCarthy Well
Company in 1919 on Princeton Street at a depth of 309 feet. A year later,the first water tower
was built at the same location by the Minneapolis Steel and Machinery Company. This 100,000-
gallon storage tank was a key to the growth of Elk River. In earlier years, Elk River had been
challenged by fires burning down parts of the town. By providing a reliable source of water, the
tower greatly reduced the risk of catastrophic fires.
After Princeton Street's name was changed to Jackson Street, the water tower became known as
the Jackson Street Water Tower. It remained in service until 1986 when the new one-million-
gallon Freeport Street Water Tower was built. The higher elevation and significantly larger
capacity of the new tower made the much smaller and shorter Jackson Street Water Tower
obsolete. Well No.1 was capped in 1996 due to excessive sand in the water and low production.
In 2008, Elk River Municipal Utilities evaluated the ongoing maintenance costs for the non-
functioning Jackson Street Water Tower and considered tearing it down.
136 ERMU,"Annual Report,"2004;"From Wind Turbine to Traffic Lights,Focus Is on Energy";"Elk River
Municipal Utilities:2009 Year in Review,"at ERMU.
137 Joni Astrup,"Energy Project Celebrates Ten Years,"Elk River Star News,October 13,2012.
138 Environmental Protection Agency,"What Is Refuse-Derived Fuel?,"
http://waste.supportportal.com/link/portal/23002/23023/Article/22529/What-is-Refuse-Derived-Fuel-RDF(accessed
April 16,2014);Joni Astrup,"Great River Energy Plant Hits a Milestone:No Landfilling,"Elk River Star News,
April 11,2012.
107
The Elk River Heritage Preservation Commission(HPC),
however, fought to save the 88-year-old water tower. In
2012, the now 92-year-old water tower was listed in the
National Register of Historic Places,which opened up
options for funding maintenance and long-term
preservation. The Elk River Star News quoted Elk River
mayor(and ERMU Chair)John Dietz: "It's a great thing for
the city. . . . To me that tower is history. It's been a
landmark in this town since I was a kid. I think it is worth
preserving and getting [it] on the National Register helps us El
accomplish that preservation effort."The commission and
the HPC continue to collaborate on finding funding to
preserve the tower.139
Challenges Lead to Great Opportunities
In December 2008, Bryan Adams resigned as general
manager. Instead of simply filling that position, the
commission decided to evaluate ERMU's organizational
structure. During the process, the commission retained its
conservation consultant, Vance Zehringer, as interim
general manager. The commission ultimately chose to fill
the vacant leadership position from within,promoting Troy
Adams (no relation to Bryan Adams), who had been hired in
2006 to manage the newly created engineering department.
Since Troy had only been with ERMU for two years,
Commissioner John Dietz felt that it was important to allow Historic Jackson Street
him time to grow into this new position and recommended Water Tower
restructuring ERMU's management. (Elk River Municipal Utilities)
The position of general manager was eliminated and the management of the electric and water
utilities was separated between two directors. As director of operations, Troy Adams was
responsible for managing the electric utility, technical services, and administration. Management
of the water, sewer, and storm services was united under the city's public works director Terry
Maurer, an arrangement made possible through a shared personnel agreement between the city
and ERMU. The agreement was called a"perfect fit"and passed the city council by a unanimous
vote.140
139 Joni Astrup,"Elk River Water Tower Named to National Register of Historic Places,"Elk River Star News,June
7,2012.
140 Troy Adams in conversation with Rachel Peterson,June 2,2014;"New Organizational Structure at Utilities,"Elk
River Star News,March 5,2009.
108
Separating the management of the water and
electric departments gave Troy Adams the
opportunity to focus on pressing personnel,
morale, and policy issues. When Bryan
a i> Adams resigned, tensions between ERMU
and the city had escalated to an all-time high
' ® due to diminishing coordination and
cooperation. This strife lead to speculation
that the city wanted to sell the utilities.
Representatives from Connexus and the
mayor had held a meeting that fueled this
speculation. Troy Adams was determined to
rebuild the relationship between the utilities
and the city to eliminate any desire to sell
ERMU.141
In addition to conflicts with the city, ERMU
experienced internal tensions during this
transitional period. Employees were
concerned with the city's apparent loss of
interest in having a municipal utility, as well
Vance Zehringer(L)and Bryan Adams(R) as the economic downturn. Wanting to
(Elk River Municipal Utilities) ensure that they maintained fair wages and
benefits regardless of what happened,
employees filed a petition to unionize. Thanks to an effective response to their concerns by the
commission and management, the employees dropped their efforts to unionize.
Troy Adams continued to focus on improving internal management,resolving personnel issues,
and rebuilding the relationship between the utility departments, the employees, and the
commission. He began promoting from within, emphasizing professionalism and
communication, to strengthen ERMU as an organization. In time, he was able to rebuild trust and
relationships through these initiatives and others, such as joint staff meetings where everyone
received the same information at the same time. He also focused on increasing communication
with customers. As a municipal utility, it was essential that operations were transparent, so
ERMU began a newsletter and held public meetings to inform and engage the community.142
Difficult times had created the opportunity to realign organizational goals, focus on core values,
and redirect the organization to better serve the community. The decisions made by the
commission during this time and the development of a new leadership team were good
preparation for facing challenges that were just over the horizon.
The Big Stone II Decision
In 2008, shortly before Bryan Adams resigned, Connexus had informed ERMU that it would be
terminating its contract in 2018. ERMU believed that if it tried to renegotiate a new contract,
141 Troy Adams in conversation with Rachel Peterson,June 2,2014.
142 Ibid.
109
Connexus would significantly raise rates. Vance Zehinger, a consultant to ERMU, told the
council that Connexus has"given us a glimpse of what could be coming down the pike, and it's
not pleasant."143
Even though ERMU had been purchasing
power through GRE for many years and
GRE's headquarters,power plant, and
■ ._ J decommissioned nuclear power plant were
■
in Elk River, ERMU was not a member of
the generation and transmission
� cooperative. After UPA and CP had merged
11111111111. and formed GRE, ERMU purchased power
-, through a member cooperative of GRE,
Connexus Energy. This arrangement
distanced ERMU from generation and
— transmission decisions that directly affected
Theresa Slominski(L), Vance Zehringer(C),and Troy ERMU's wholesale power costs. The
Adams,P.E. (R)reporting to the city council on not
termination notice by Connexus Energy
selling ERMU.
(Elk River Star News,July 6,2009) provided an opportunity for ERMU to
evaluate what was best for their customers.
I ----- As a result, ERMU began the long process
,, of evaluating their options.
'� In June 2009, ERMU had the opportunity to
j t
J ♦I y become a partner in the proposed
` development of the Big Stone II(BSII)
r, power plant in South Dakota. BSII would be
, ' 4r,�.. built next to the existing Big Stone I plant,
'. and both would be fueled by coal from the
4r Powder River Basin in Montana and
d ;, • i Wyoming. The project was estimated to
John Dietz(standing)speaking to the Elk River cost between$1.6 and$1.7 billion, with
Citizens League on why he voted against the ERMU anticipated to contribute$90
Big Stone II power plant million.144
(Elk River Star News,September 11,2009)
Buying into BSII would allow ERMU to
secure very low energy rates. Convincing the public to support the project was difficult,
however,because the coal-burning plants were stigmatized by negative environmental impacts.
In addition,many were concerned about the plant's price tag.145
Following extensive analysis and public comment, a special joint meeting of the city council and
utilities commission was called in June 2009 to consider the BSII investment. Due to the high
143"New Organizational Structure at Utilities,"Elk River Star News,March 5,2009;Joni Astrup,"Elk River Has
Chance to Buy into Plant,"Elk River Star News,June 19,2009.
144 Astrup,"Elk River Has Chance to Buy into Plant."
145 Jim Boyle,"Time Running Out on Big Stone,"Elk River Star News,July 6,2009.
110
costs,risk, and potential environmental impacts,the council was less than supportive.
Councilmember Paul Motin questioned whether rates would be comparable with Connexus and
suggested that the city would be better off selling ERMU. While not advocating for a sale,
Mayor Klinzing felt that all alternatives must be considered. Councilmember and ERMU
Commissioner Jerry Gumphrey noted the city still had nine years to figure out other alternatives.
The special joint meeting was continued to July. At that time, with a very close vote,ERMU
decided to abandon its interests in BSII. Commissioner John Dietz, who provided the swing vote,
said in a Star News article: "I would rather take my chances negotiating [power] contracts."
Since construction on the Big Stone facility had not begun, many felt the investment was based
on"a hope and a prayer," and given the amount of money involved and the risk to the city's
bond rating, it was too great a risk. 146
Not long after ERMU decided not to invest in BSII, other major investors pulled out of the
project and the plant was not built. This confirmed ERMU's hesitations and reassured all that it
had made the right decision.147
Midwest Municipal Transmission Group and Transmission Investment
In May 2006, ERMU joined the Midwest Municipal Transmission Group(MMTG)to explore
the potential of obtaining ownership of the regional transmission system,which essentially
works as a hedge to mitigate volatility in transmission costs. This non-partisan/not-for-profit
organization was created to provide service and assistance to the membership for matters relating
to the planning, construction, ownership/investment, operation and maintenance, and
administration and management of electric transmission and/or power generation facilities. The
action to join MMTG represented ERMU's decision to investigate a change in direction toward
ownership instead of renting. This turned out to be a good long-term decision. ERMU remains a
member of MMTG at the time of this writing, and through proactive participation,represents
their investment and their customers. In 2013, Troy Adams served as the president of the
MMTG's board of directors.
In February 2007, ERMU entered into an agreement with the Central Minnesota Municipal
Power Agency(CMMPA)to participate in the CAPX2020 Brookings-Twin Cities Transmission
Project. In March 2011, the commission and the city council approved resolutions authorizing
ERMU's participation in the project for an amount not to exceed$7,140,953. ERMU stood to
gain more from this project than stabilized transmission rates. It would also receive a portion of
the tariffs paid for the transmission line. From these tariffs, more than $5 million in revenues
could be expected annually after the bonds were repaid)"
146 Ibid.
147 Joni Astrup,"Council Concurs with Utilities'Big Stone Vote,"Elk River Star News,July 17,2009.
148"Elk River Looking to Increase Ownership in Transmission Line,"Elk River Star News,March 9,2011;ERMU
Commission Resolutions,March 14,2011,Elk River website,http://web1-elkr.ci.elk-river.mn.us/WebLink8/
DocView.aspx?id=100057&dbid=1 (accessed March 18,2014);"Elk River Votes to Increase Investment,"Elk River
Star News,March 16,2011.
111
Public Power, Local Control, and Ownership of Our Future
The improvements at ERMU under the leadership of commission chair John Dietz, Troy Adams,
and the new management team were acknowledged in 2010 when ERMU received the System
Innovation Award from the Minnesota Municipal Utilities Association. This award recognizes
municipalities that succeed in energy leadership, innovation, and efficiency. ERMU was selected
because of its diverse renewable energy resources, reliability record, and conservation programs.
The award also reflected ERMU's long-term system design planning and ongoing system
maintenance.149
During the same period, ERMU worked to protect local resources for their customers. In
October 2010, the Elk River City Council passed an ordinance to stop the city's largest water
users from drilling their own wells. Had these high-volume customers stopped buying water
through ERMU, it would have been a major blow to the water department's already tight budget.
A cool and rainy year had decreased revenues,but the water department was able to avoid
raising rates by reducing expenses.15° In addition to the financial issue,there was concern that
commercial customers would increase the risk of contamination to the city's aquifer by drilling
wells. The conflict went beyond the city's boundary. Commissioner Dietz and Troy Adams
testified to a Minnesota Ways and Means Senate Committee in support of the city's right to
protect its water source.
Another aspect of the high quality of the city's water was acknowledged in 2011 when the
Centers for Disease Control and Prevention(CDC) and the United States Department of Health
and Human Services presented ERMU with the Water Fluoridation Quality Award. This award
signified consistent and professional
adjustment of the water fluroride ,, ULU
content to the optimum level for oral ► able Pt�rc
:er Provider
health for twelve months.
'vice Development
ment
In 2012, ERMU received more
national recognition when honored � •
for providing reliable and safe
electric service. Of the more than l'r'
2,000 public power utilities in the •
country, ERMU was one of only 176 _•�'
that received the American Public
Power Association(APPA) Reliable
Public Power Provider(RP3®)
designation. There were four Wade Lovelette(C),ERMU Technical Services Superintendent,
evaluation metrics for this receiving the RP3 Award from Brian McKinney(L),Manager
designation: reliability, safety, at City Utilities of Springfield, Missouri, and Mike Hyland(R),
workforce development, and system . APPA's Senior Vice President of Engineering and Operations
improvement. ERMU's reliability (American Public Power Association)
149"ERMU Receives Award,"Elk River Star News,September 3,2010;"Elk River Municipal Utilities 2010 Year in
Review,"at ERMU archives.
iso Joni Astrup,"Elk River Targets Large Water Users,"Elk River Star News,October 23,2010;"Elk River
Municipal Utilities 2010 Year in Review,"at ERMU archives.
112
score for 2011 was 99.994 percent, which was particularly remarkable because there had been
two major storm-related outages that summer. ERMU's electric distribution system was more
than 70 percent underground so it was better able to withstand damaging weather.151
Growth and Electric Service Territory
In July 2012, the commission voted to extend ERMU's electrical service territory within the city
of Elk River. Prior to the 1977 merger, ERMU provided electrical service to the Village of Elk
River,while the township was served by Connexus. In 1991, ERMU negotiated a contract with
Connexus for"a 20-year orderly electric service territory acquisition plan."By 2012,however,
the agreement had expired, and there were 7,723 acres and 1,774 properties within the city limits
of Elk River that did not receive electrical service from ERMU. The commission reasoned that
by reaching this area,the economies of scale would reduce costs, and uniform service would
allow for better planning of future facilities and quicker response when outages occurred. In
addition, a larger customer base would improve ERMU's bargaining position as it looked for a
new wholesale supplier.152
The majority of ERMU's budget, 74 percent,went to purchasing power. The remainder was
allocated to administrative costs, depreciation, and distribution. Distribution was a key element
of ERMU's business,with customers in Otsego, Dayton, and Big Lake Township as well as Elk
River. ERMU earned the distinction of being one of the few municipalities in Minnesota with
customers beyond its corporate boundaries.153
Minnesota Municipal Power Agency
Since being notified in 2008 that Connexus would terminate its power contract in 2018, ERMU
had diligently explored options for a future power supply, including an extension of the
Connexus contract. ERMU established criteria for analyzing wholesale power suppliers that
included the following:
• Rates—Improve competitive position through lower wholesale power costs
• Local Control—Obtain the ability to vote and have a voice in decisions affecting future
costs
• Reduce Risk—Develop stability by minimizing carbon regulation exposure
• Communication—Gain industry knowledge by sharing information
• Advocacy—Achieve safety in numbers by partnering with utilities with like interests
After five years of analysis, ERMU chose a new supplier of wholesale energy,the Minnesota
Municipal Power Agency(MMPA). The contract would begin in October 2018. Troy Adams
explained the decision to the Le Sueur News Herald: "We spent five years looking at our future
supplier partner. As a public power municipal utility, we sought competitive rates, and we
157 ERMU,"Annual Report,"2012,n.p.
152 ERMU Commission Resolutions,July 17,2012,Elk River website,http://webl-elkr.ci.elk-
river.mn.us/WebLink8/DocView.aspx?id=100057&dbid=1 (accessed March 18,2014).
153 ERMU,"Annual Report,"2012,n.p.
113
wanted to be aligned with other like-minded utilities," including Anoka,Arlington, Browntown,
Buffalo, Chaska, East Grand Forks,North Saint Paul, Olivia, Shakopee, and Winthrop.'
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On May 13,2013, the ERMU Commission unanimously adopted a resolution requesting membership in MMPA
Left to right: Oncu Er, MMPA;David Niles, MMPA;Al Nadeau,ERMU Commission;Daryl Thompson,ERMU
Commission;John Dietz,ERMU Commission;Derick Dahlen, MMPA; Troy Adams,P.E.,ERMU
(Elk River Municipal Utilities)
Joining the MMPA gave ERMU a voice in the organization's decision-making process. Each
member of MMPA had a seat on the board of directors and could vote on all decisions. This was
a welcome change from ERMU's lack of input on decisions in its previous contract. The MMPA
also used very little coal in its operations,which reduced related regulations and costs.155
Rising rates were one of the primary reasons that the ERMU commission decided to find a new
supplier and not renew with Connexus and GRE,the state's second-largest electric supplier,
which had raised its rates 58 percent since 2006. "The number one driving reason" for the
change, Adams confirmed, "is we want to remain competitive, and wholesale power rates are 75
percent of our costs."He also indicated that ERMU had environmental concerns about GRE's
dependency on coal-fired facilities, which could face new regulation in the future."We were
worried about potential rate increases because of all of this coal infrastructure. . . . MMPA is in a
much better position."156
MMPA had several green energy initiatives that made it a favorable partner for ERMU. MMPA
board chairman Steve Schmidt, a city council member in Anoka, said that"our member
municipal utilities will benefit from our mix of cost-effective and local renewable energy
generation sources."MMPA's eight-megawatt bioenergy facility in LeSueur, Minnesota, for
154 Minnesota Municipal Power Agency to Troy Adams,letter,June 5,2013;"Elk River Municipal Utilities to Join
Minnesota Municipal Power Agency,"Le Sueur News-Herald,June 21,2013;Minnesota Municipal Power Agency
website,http://www.mmpa.org/Our-Communities/Elk-River.aspx(accessed March 7,2014).
155 Troy Adams in conversation with Rachel Peterson,June 2,2014.
156 David Shaffer,"Rates Cost Great River Big Customer:Elk River,"Minneapolis Star Tribune,June 21,2013.
114
example, generated power from agricultural and
food processing waste products. The LeSueur
facility, one of the largest in the country to
employ an anaerobic digestion process, had
been developed by Minneapolis-based Avant
Energy. According to Kelsey Dillon, Avant's
vice president of bio-power, "we're generating
valuable,renewable and dispatchable on-peak
fitt
electricity with this process." She explained that
"at optimal times when the power is needed and
tor its value is highest, we draw off the biogas from
storage to fuel the generators."157 This was a
distinct advantage over solar and wind, where
f storage was problematic.
ERMU made the difficult decision to not
renegotiate the contract terminated by Connexus
Energy because the MMPA was a better fit with
ERMU's philosophy and needs. This did not,
however,mark a complete break of the old
relationship. ERMU, GRE, and Connexus have
Hometown BioEnergy Facility continued to collaborate on mutually beneficial
in Le Sueur, Minnesota
(Avant Energy) projects.
In early 2014, ERMU went through a Moody's rating call as part of an Electric Revenue Bond
Refunding. Moody's affirmed ERMU's Aa3 rating. Moody's noted ERMU's decision to join the
MMPA in 2018 and not renegotiate a wholesale power contract with its current provider as a
contributor to this solid rating.
Reflection on a Century of Service
Fred Waterman created Elk River Power and Light in 1915 and started generating power from
the new hydroelectric plant in 1916. The community could not have imagined ERMU's
incredible growth and diversification in the following century. An increasing service area and
higher electric demand made it impractical for ERMU to continue generating all of its electricity,
and it began to obtain power from wholesale providers.Now, ERMU purchases all of its
electricity. It also owns generation facilities that include a landfill-gas-to-electricity facility and a
dual-fuel diesel/natural-gas power plant from which the energy is sold back to GRE.
ERMU has also increased its conservation efforts in recent years, providing innovative
stewardship of the earth's limited resources. Initiatives like the Wellhead Protection Program
protect the quality of Elk River's natural resources. Other programs, like Project Conserve, foster
responsible energy use through education and technology.
'S7"MMPA Producing Power from Food Processing,Agricultural Waste,"Public Power Daily,February 7,2014.
115
Community growth comes on the back of investments in infrastructure, and the growth of
electricity, water, wastewater, and other systems are inevitably interrelated. The risk and burden
of investment by the taxpayers into the city services creates a prime environment for economic
development. Establishing a strong relationship between ERMU and the City of Elk River
becomes critical to the future growth of the community. Under current leadership, ERMU and
the city have developed a great working relationship, perhaps the best it has been over the past
century.
From the vision of Fred Waterman to the initiative of William Birrenkott, the strategic planning
of Troy Adams, and the commitment of John Dietz, the success of ERMU can be attributed to its
local leadership. Local control and accessibility to the community provide the flexibility to adapt
to changes in policy, the regulatory environment,technology, and the utility industry.
Over its history, ERMU has remained committed to providing high-quality service at
competitive rates, and it has successfully adapted to constant changes in its industry and the
surrounding community. ERMU has built a relationship of trust with its community and looks
forward to the challenges and opportunities of its next century of service.
Oppr
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2015 Company-wide employee photo taken at ERMU's historic power plant
(Elk River Municipal Utilities)
116
Afterword — A Future of Growth
By Troy Adams, P.E. –Elk River Municipal Utilities General Manager
I am struck by how past decisions have significantly shaped our community, and the tremendous
opportunity that ERMU and our community now enjoy. In 1977, our past leaders took on the
challenge to merge the Village and Township of Elk River. Later, our leaders entered into a long-
term agreement to provide electric to areas of what is now the City of Elk River. Without this
vision, ERMU would have served only a tiny portion of the City of Elk River, and may not even
exist. The governance, leadership, and employees of Elk River Municipal Utilities are committed
to taking advantage of these opportunities and continue to move forward.
Today, ERMU enjoys another opportunity to grow with its city. Significant areas within the City
of Elk River are not served by ERMU,but rather by our neighboring electric cooperative,
Connexus Energy. By statute (agreed to many years ago by municipal utilities and rural electric
cooperatives to help cooperatives finance plants and transmission facilities), a municipal utility
such as ERMU has the right to grow with its city. There are sound reasons why: The growth
within a city is often driven by infrastructure improvements in roads, water, and wastewater
facilities. These investments in our community are paid for by our community. Since the merger,
our community has invested millions of dollars into infrastructure. The owners of a municipal
electric utility,the customers, should see a return on their investment in the city infrastructure.
Growth of our municipal utility also provides improved economies of scale for services, in turn
lowering costs to our customers.
On March 20, 2015, Connexus Energy and Elk River Municipal Utilities completed a three year
electric service territory acquisition negotiation and executed an agreement with the provisions to
transfer the remaining approximately twelve square miles(7,680 acres) of Connexus electric
service territory within Elk River city limits to ERMU over five years. There are approximately
2,000 existing customers within this area, including commercial and industrial customers along
U.S. Highway 10. This is Minnesota's largest electric service territory transfer agreement to date.
It is not typical for service territory transfers to come to agreement without litigation or the
involvement of the Minnesota Public Utilities Commission. And yet we were able to negotiate
mutually beneficial terms,which speaks volumes about both utilities. We are excited for what
this electric service territory expansion will bring for our community, and believe that this
transition will prove to be a milestone for ERMU—both now and many years from now.
As we celebrate our 100th year anniversary, Elk River Municipal Utilities is pleased to serve our
community and to celebrate our mutual success. We are public power and water; we are owned
by those we serve; we are governed by members of our community. We are thankful for those
who have paved the way for us during this past century of service. And we look forward to
providing excellent service and a future of growth.
117
118
Appendix A: Resolution and Creating a Utilities Commission
Trustee Ellingson presented the following resolution and moved its adoption:
Resolution creating a Water, Light, Power and Building Commission in and for the Village of
Elk River,Minnesota.
Whereas, Chapter 412, Laws of Minnesota, 1907, and acts amendatory thereof, said chapter now
being contained in Sections 1852 to 1860 both inclusive, of Mason's Minnesota Statutes, 1927,
authorize the creation of a water, light,power and building commission, and
Whereas, that law is applicable in the Village of Elk River and the Village of Elk River desires to
adopt the provisions of that law,
Now Therefore Be It Resolved, that a water, light,power and building commission is hereby
created and established in and for the Village of Elk River,Minnesota,with all the powers and
duties provided for in the aforesaid law; that said commission shall consist of three persons who
are hereby appointed to be members of that commission for the terms set opposite their
respective names,to wit:
V. B. Skellinger For the term of one year
Otis Nickerson For the term of two years
C.F. Meyers For the term of three years
This resolution shall become effective and the said commission shall be created as of the 11th
day of July, 1947, and the terms of office of the said persons herein appointed shall begin as of
that date and shall end on the last day of the calendar year in which their respective terms shall
end,provided that these appointees and successive appointees shall hold their offices until their
successors are appointed and qualified, and provided that appointments made of successors to the
appointees at the expiration of their terms shall be for three years. Every commissioner hereby or
hereinafter appointed under this resolution or by authority hereof, shall before entering upon the
discharge of his duties take and subscribe to an oath that he will faithfully discharge the duties of
the office to which he is appointed.
This motion was seconded by Trustee Johnson and put to a vote. All members voted for it and it
was thereby adopted.
Adopted by the Council this 1 lth day of July 1947.
Approved, G.B. Davidson,mayor
Attest, H.A. Briggs, Village Clerk
119
120
Appendix B: By-Laws of the Water and Light Commission,
Village of Elk River, Minnesota
ARTICLE I
Office of Commission
Section 1. The office of the Water and Light Commission, Village of Elk River, shall be in the
Utility Office,Village of Elk River, Minnesota.
ARTICLE II
Meetings
Section 2. Regular meetings of the Water and Light Commission shall be held without notice at
8:00 p.m. o'clock of the first Tuesday of each month at the office of the Commission.
Section 3. Special meetings of the Water and Light Commission may be called at any time by the
President or by any two Commissioners, to be held at the Commission's office or at such other
place or places as the Commissioners may from time to time designate.
Section 4.Notice of all special meetings of the Water and Light Commission shall be given to
each Commissioner by two (2)days' service of the same by telegram, by letter or personally.
Section 5. The order of business of all Commission meetings shall be as follows:
1. Roll call
2. Reading of minutes of the last meeting
3. Report of officers
4. Unfinished business
5. New business
6. Adjournment
Quorum
Section 6. A majority of the Commissioners Elect shall constitute a quorum for the transaction of
business, and the votes of a majority of the Commissioners present, shall be sufficient to adopt
any motion or resolution. The votes of members on any action shall be taken by ayes and no's
and recorded in the minutes.
ARTICLE III
Water and Light Commission
Section 7. Under authority granted by the Laws of the State of Minnesota and subject to the
limitations thereof, the Water and Light Commission shall have control, management and
operation of all water and light plants and properties of the Village of Elk River, Minnesota, and
shall do or cause to be done or authorize all things necessary for the proper execution of any
power conferred upon the Water and Light Commission.
121
Section 8. The Commission shall act by resolution or vote of its members, or by its other duly
constituted officers or agents acting within the scope of such authority as may be conferred upon
them by resolution or vote of the Water and Light Commission or by these by-laws.
Section 9. As the first regular meeting off the Commission following the annual meeting of the
Village Council for appointment of appointive officers, the Water and Light Commission shall
choose a president and a secretary from its own number, and at a regular meeting as soon as
practicable following the time at which a vacancy exits in its own number to such office as is
vacant. Such officers shall hold office until their successors are chosen and qualify in their stead.
Section 10. The Water and Light Commission by resolution, shall appoint a superintendent, an
accountant, who shall be the collector, and such other officers and agents as it shall deem
necessary,who shall hold their offices for such term and shall exercise such powers and perform
such duties as shall be determined from time to time by the Commission.
Section 11. The Water and Light Commission,upon recommendation of the Superintendent and
the filing of applications, shall anoint all employees of the Water and Light Commission.
Section 12. In the case of absence of inability to act of any officer of the Commission and of any
person herein authorized to act in his place, the Commission may from time to time delegate the
powers or duties of such officer to any other officer, or any Commissioner or other person whom
it may elect.
Section 13. No compensation shall be paid any member for services as president, secretary, or
other services which may be rendered. Each member shall be entitled to be reimbursed for his
actual and necessary traveling and hotel expenses incurred whenever it shall be necessary for
him to travel outside the Village of Elk River in carrying his duties pertaining to the water and
light properties, which travel may be required of him by law or by vote or resolution of the
Water and Light Commission.
The Compensation of members and amounts due them as reimbursement for expenses shall be
paid at the end of each month upon itemized statements duly verified. Such payment and
reimbursement shall conform as to manner of payment as required by laws of the State.
Section 14. Any officer, agent or employee elected or appointed by the Commission may be
removed at any time by the Commission.
Section 14. [sic] The salaries of all officers, agents and employees of the Commission shall be
fixed by the Commission.
Section 16. The president shall preside at all meetings at which he is present. He shall make such
reports to the Council as are required of the Commission and shall perform such other duties as
are incident to his office or are property required of him.
Section 17. The Secretary shall be the Superintendent of the Water and Light Department and
shall do or cause to have done by other officers and agents the following:
122
(a)to act as Secretary of all Commission meetings and to record and sign all minutes of
meetings of the commission.
(b)to cause to have kept safely and systematically all books, records, files, and papers of
the Commission.
(c)to sign, execute or acknowledge with the President of the Commission all instruments
authorized by the Commission.
(d)to cause to be presented at the beginning of each month to the Council upon carefully
prepared vouchers, all bills for labor and material previously obtained or purchased by
the board,which have been examined and approved by the Commission, for allowance
and payment.
(e)to cause to be prepared all annual and monthly statements as may be required or as
directed by resolution of the Commission.
(I)to see that all notices are duly given in accordance with the provisions of these By-
laws or as required by law.
(g)to perform such other duties as may be prescribed from time to time by the
Commission or as are incident to his office.
ARTICLE IV
Appointive Officers of Water and Light Commission
Section 18. Superintendent.
(A) The Superintendent shall be the chief executive officer of the Water and Light Commission.
He shall be chosen by the Commission solely on the basis of his executive, and administrative
qualifications for the supervision and direction of all operations and business of the Water and
Light properties. He need not, when appointed,be a resident of the Village. All other things
being equal,the Commission shall appoint as Superintendent a person with experience in the
construction, operation and management of public utilities. Not member of the Commission
shall, during the time for which appointed or within one year thereafter,be chosen as
Superintendent. No person shall continue to hold the position of Superintendent for a period
longer than six months is related as a father,brother, uncle, cousin or nephew by blood or
marriage,to any member, officer or employee of the Water and Light Commission. In case of
absence or disability of the Superintendent, the Commission shall designate some qualified
person to perform the duties of the office during such absence or disability.
(B)The Superintendent shall be Secretary of the Water and Light Commission and shall perform
all the duties of the Secretary as so instructed.
(C) The Superintendent shall have full charge and control of the construction of all work under
the jurisdiction of the Commission,the maintenance and operation thereof, and the
administration of the business affairs of the Commission. All officers, employees, and agents
when appointed by the control and management of the Superintendent.
The powers of the Superintendent shall be:
(1)to see that these by-laws and all rules and regulations of the Commission are
enforced.
123
(2)to see that the operation, construction and maintenance of the Water and Light
properties conform to all provisions of the laws of the State.
(3)to see that all supplies and materials are purchased according to procedure as
prescribed by the State laws.
(4)to attend all meetings of the Water and Light Commission, to submit reports of the
affairs of the Water and Light Commission, and to participate in the discussion of all
matters coming before the Commission.
(5)to keep the Commissioners advised as to the financial condition and future needs of
the water and light utilities, and to prepare and submit an annual budget.
(6)to prepare or cause to be prepared, all plans and specifications for the construction of
the works of the Commission.
(7)to devote his entire time to the business of the Commission.
(8)to perform such other and additional duties as the Commission may require.
(9)to prepare or have prepared for presentation to the Commission for its consideration
and approval, rules and regulations as follows:
(a)Information and requirements for electrical service.
(b)Information and requirements for water service.
(c)Management policy in relation to employees.
(d)Manual of accounting instructions.
Section 19. Accountant.
(A)An accountant,with such title and who shall perform the duties of the Collector and
Bookkeeper, shall be chosen by the Commission on the basis of his qualification to perform the
duties of such office. This accountant shall also be the Deputy Treasurer of the Village of Elk
River.
(B) The accountant, as Collector, under the direction of the Superintendent, shall collect and pay
forthwith into the Treasury, all moneys due on account of the operations of the water and light
properties, and all money which may come into his hands belonging to the Village. The
accountant shall give all notices as required by these by-laws, and as required of the Collector by
the State laws or as may be set forth in all rules and regulations as approved, from time to time,
by the Commission.
(C) It shall be the duty of the Accountant to keep a regular set of books for the water plant, and
also for the electric plant, showing in detail the business transactions of each of said plants. Such
records shall conform to the provisions of these by-laws.
(D) The Accountant shall have charge of,under the supervision of the Superintendent, all office
employees.
Section 20.
All other appointees and employees of the Commission shall be required to pass such tests as
may be prescribed from time to time by the commission. No person shall be employed by the
Commission in doing any work unless he holds a certificate of registration or license that would
124
be required from the State to do such work when done on private property or for private
business. The duties of such appointees and employees shall be prescribed from time to time by
the Superintendent with approval of the Commission.
ARTICLE IV
Certain Rules, Regulation and Procedure of Water and Light Commission
Section 21. Accounting.
(A) The books and accounts of the Water and Light Commission shall be kept in so far as
practicable in conformity with the uniform systems of accounts as prescribed by the Federal
Power Commission and as set up by Messrs. Ernst and Ernst, Accountants and Auditors.
(B) In keeping such books and accounts,the electric system accounts shall be administered as
separate accounting units.
(C) In keeping such books and accounts,the water system accounts shall be administered as
separate accounting units.
Section 22. Rates.
(A)General.
The Commission shall fix rates for electrical energy and water service to the ultimate consumer
without discrimination between consumers of the same class, and no rate shall be charged or
practice adopted which will grant a discriminatory rate, rebate or other special concession to any
consumer served by the Water and Light Commission. It is specifically understood that the water
department is a consumer of the electric department within the meaning of this section.
(B) Electric Rates.
The Commission shall fix such rates for electricity furnished to consumers as will secure
revenues sufficient to pay all salaries and wages of all officers and employees in the electric
department;to cover the cost of all materials and supplies used in the operation of the plant; to
cover the cost of all repairs; to cover all miscellaneous expenses; to pay all interest charges upon
all indebtedness of the Village created for the purpose of purchasing, improving or extending the
electric lighting plant, and to provide a sinking fund sufficient for the purpose of paying off such
indebtedness at maturity; and to cover the following annual appropriations:
(C)Water Rates.
The Commission shall fix such rates for water furnished to consumers as will secure revenue
sufficient to pay all salaries and wages of all officers and employees in the water department; to
cover the cost of all materials and supplies used in the operation of the plant; to cover the cost of
all repairs; to cover all miscellaneous expenses; to pay all interest charges upon all indebtedness
of the Village created for the purpose of purchasing , improving or extending the
125
electric lighting plant, and to provide a sinking fund sufficient for the purpose of paying off such
indebtedness as maturity; and to cover the following annual appropriations;
Section 23. Electric Rules and Regulation.
The Commission shall adopt and amend, from time to time,rules and regulations pertaining to
electric service to consumers and customer relations. Such rules and regulations shall prohibit the
Commission and is employees from servicing customer equipment on customers' premises
except for the installation and maintenance of its property;however,the commission may make
an allowance to a customer installing an electric range or water heater to defray the cost wholly
or in part for wiring for such installation.
Section 24. Water Rules and Regulations.
The Commission shall adopt and amend, from time to time,rules and regulations pertaining to
water service to consumers and customer relations. Such rules and regulations shall specifically
provide that no person except the tappers employed by the Commission, or persons in their
service duly approved,will be permitted to tap any distributing pipe, or insert stop-cocks or
ferrules therein in and that the Commission shall not install or maintain the service to any
customer.
Section 25. Policy as to Employees.
The Commission shall adopt and amend from time to time rules and regulations in respect to
labor and employment policy and thereupon publish. In the selection of employees of the
department, the fullest preliminary information, including a birth certificate, shall be submitted
to the Commission prior to consideration for employment by the Commission. The Commission
shall require that all present employees submit comparable information, including
a birth certificate, to the Commission. Selection of or appointment to the service of the
Commission will not be made when such appointments involve nepotism as defined by the
Commission. All appointments and promotions shall be made on merit. In positions or
employments, comparable to private registration under the statutes, State of Minnesota, all
appointees and present employees shall be required to hold a certificate of registration.
Section 26. Application of By-Laws.
In the event that any provision of these by-laws is or may be in conflict with any law of the
United States, of the State of Minnesota, of the Village of Elk River, Minnesota, or of any other
governmental body or power having jurisdiction over this Commission or over the subject matter
to which such provision of the by-laws applies or may apply, such provision of these by-laws
shall be inoperative to the extent only that the operation thereof unavoidably conflicts with such
law and shall in all other respects be in full force and effect.
126
Appendix C: Elk River Municipal Utilities Commissioners and
Employees
EMPLOYEE POSITION YEARS
Abraham, Wade c. 1970
Adams, Bryan General Manager 1996-2008
Adams, Harold Utilities Commission 1977-1979
Adams, Troy Engineering Manager, General Manager 2006-present
Anderson, Lex Lineworker 2007-2011
Anderson,Michelle Customer Service Representative,Billing Specialist 2008-present
Anderson,Rodney Operator, Plant Manager 1951-1981
Anderson,Russell Meter Reader and"utility man" 1951-1965
Andreasen, Dolores Accounts Payable &Payroll Clerk, Customer Service 2003-2014
Representative
Bailey, Joseph Utilities Commission 1955-1962
Banke, Werner Utilities Commission 1962-1985
Barnier, Joe Operator -1950
Beaudry, La Vonne Office c. 1974-1976
Belanger, Betty Clerk/Cashier 1984-2007
Belanger, Richard Part time 1959, 1960
Berg, David Water Superintendent 1999-2014
Biorn, Jenny Accountant 2014-present
Birrenkott, William General Manager 1986-1996
Bradway, Russell Operator, Plant Manager 1963-1990
(Rusty)
Brovik, Jennifer Clerk/Cashier 2000-2002
Burgoyne, Richard Utilities Commission 1970-1975
Canterbury, Michelle Customer Service Representative, Executive 2013-present
Administrative Assistant
Clifford, Dennis Jr. Lineman 1993-2000
Cline, Richard Water Operator 2003-2009
Collins,Lyle Lineman, Line Foreman 1952-1985
Defeyter, Shane Lineworker 2005-2012
Degnan,Margaret Bookkeeper 1949-1950
Dietz,John Utilities Commission 1995-present
Dill, Douglas Utilities Commission 1986-1988
Doebler, Raymond Operator, Power Plant Superintendent, Home 1971-2003
Security
Domeier, Peter Water Operator 2011-2012
Donahue, Pat Lineman's Assistant c. 1950
Duitsman, Hank Utilities Commission 1979-1986
Durland, Kelly Purchasing Specialist 2015
127
Elliott, Lawrence Utilities Commission 1976-1978
(Butch)
Elsenpeter, Benjamin Inventory Person 2013-present
Embretson,Al Hydro Operator c. 1950
Erickson, Arthur Utilities Commission 1970-1976
Ethier-Satterlee, Jane Clerk/Cashier 2003
Fenn-Jansen, Jolene Customer Service Representative,Key Accounts 2014-present
Specialist
Ferguson, Peggy Customer Service Representative 2007-2010
Fournier, Geralyn Purchasing Specialist 2015-present
Franz, Lorrie Accountant(Part-time) 2008-present
Freiberg,Adam Security Technician, Electric Technician 2001-2013
Fuchs,Mark Lineman, Lead Lineman, Electric Superintendent 1986-present
Gatchell, Arthur Lineman, Lead Lineworker 1991-2012
Geiser, Thomas Lineman, Lead Lineworker,Assistant Electric 1999-present
Superintendent
Girtz, Mitchell Lineworker 2012-present
Grande, Chad Lineworker 2004-2012
Grejtak, Bradley Meter Technician 2004
Gudim, Darlene Office 1972-1976
Gumphrey, Jerry Utilities Commission 2007-2010
Gwiazdon, Trevor Lineman, Lead Lineman 1996-2006
Hagel, Jerry Diesel Operator c. 1950
Hartkopf,Jill Clerk/Cashier 1999-2002
Hauge,Angela Water Operator 2007-present
Henning, Jeffrey Lineworker 2001-2011
Holsbo, Ward Superintendent 1945-1947
Halter, Richard A. Plant Operator, Superintendent,Advisor 1928-1971
Hanson, Robert Diesel Plant Operator c. 1948-1951
Hemza, Patricia Office Manager 1987-2005
Hipsag , Clara Bookkeeper 1950-1974
Hubbard, Anthony Maintenance &Inventory Person, Electric 2011-present
Technician
Jacobson, Sam Diesel Operator c. 1950
Jarmoluk, Anthony F. Utilities Commission 1979-1980
Jelle,Mrs. Leonard Office (Part-time) c. 1957
Jensen, Bradley Laborer 2001
Johnson,Zachary Lineworker, Lead Lineworker 2011-present
Jones, Joy Office 1982-1987
Jones, Richard Lineman 1985
Kettner, Donald Utilities Commission 1981-1986
King, Christine Inventory Clerk 2003-2010
Knowlton, Irene Bookkeeper 1948-1949
Koehn, Ronald Operator c. 1969-1986
Kral, Amy Office Clerk 2005-2006
128
Langer, Michael Lead Water Operator 2014-present
Larson, Harry Lineman, Operator c.1947-1960s
Leech, Roger Meter Reader, Groundman c. 1979
LeFebvre, Daniel Lineman 1985-1986
LeFebvre, Joan Office 1949
Lehmkuhl, Daniel Mechanic 2001-2003
Lewis,Nancy Office 1982-1986
Lindberg, Jeremy Bore Rig Operator 2015-present
Lorenzen, Lloyd Lineman, Lead Lineworker, Foreperson 1986-present
Lovelette,Wade Lineman, Lead Lineman, Foreman, Technical 1981-2015
Services Superintendent
Lundemo,John Operator 1947-1951
Mahon, Samuel Meter Reader 2010-2011
Malecha, Donna Customer Service Representative 2010-2011
Mansur, Charlie Hydro Operator c. 1950
Martindale,Michelle Office Clerk, Credit& Collections Specialist 2005-present
Mason, Janette Clerk/Cashier 2002-2003
McCartney, Robert Meter Superintendent, Water Superintendent 1967-1999
McSpadden,Judy Clerk/Cashier,Accounts Payable&Inventory Clerk, 1986-2014
Purchasing Specialist
Meyers, Cleeland F. Utilities Commission 1947-1955
Morgan, Jesse Mae Office 1950
Munsrud, Michael Lineman 1985-1991
Murray, Jeffrey Locator, Bore Rig Operator, Electric Technician 2004-present
Nadeau, Al Utilities Commission 2011-present
Nelson, Jennifer Customer Service Representative, Executive 2011-present
Administrative Assistant, Customer Service Manager
Nelson, Reid Lineworker 2015-present
Nickerson, Otis Utilities Commission 1947-1968
Nielsen, Peter Water Operator 2005-2015
Nielsen, Scott Water Operator 1996-2005
Ninow, David Water Operator 2015-present
Nord,Mable Bookkeeper 1947-1948
Nordahl, Steven Home Security Specialist 1990-2001
Oeffling,Matthew Lineworker 2012-2014
Olek, Theresa Customer Service Representative 2015-present
Olson, Kermit Groundman 1966-1967
O'Neill,Michael Technical Services Superintendent 2015-present
Orrock, Grant Lineworker 2009-2013
Patenaude,William Utilities Commission, Superintendent, Advisor 1949-1981
Peterson, Susan Office c. 1977-1979
Peterson, Tess Office c. 1965-1972
Pope, Patricia Office Clerk, Billing Specialist 2006-2014
Price,Michael Electric Technician, Lead Electric Technician 1998-present
Rahn, Jessica Customer Service Representative 2015-present
129
Reichwein, Andy Lineman 2000-2001
Robinson, Sharon Head Bookkeeper 1976-c.1987
Romanoski, Ruth Clerk/Cashier 1993-2000
Romie,Meridee Customer Service Representative 2014-present
Rootes, Jennifer Office c. 1979-1984
Rosch, Steven Lineman 1976-1982
Ross,Anthony Lineworker 2013-2015
Sagstetter, Thomas Conservation&Key Accounts Manager 2011-present
Sandstrom, Kimberly Accounts Payable &Payroll Specialist 2007-present
Schallock, Christy Customer Service Representative 2014-present
Schantzen,June Clerk/Cashier 1998-1999
Schaust, Richard Security Technician 2004-present
Scherber, Greg Office Clerk, Billing Clerk, Assistant Office Manager 2003-2014
Schwartz,Matthew Lineworker 2011-present
Schmidt,Vivian Customer Services Specialist, Assistant Office 1978-2008
Stenglein Manager
Simpson, James Utilities Commission 1989-1995
Seter, Troy Lineman 2000-2009
Skellinger,Vernon B. Utilities Commission 1947-1949
Skowronek, Staci Accounts Payable&Payroll Clerk 2004-2005
Slominski, Theresa Accounts Payable &Payroll Clerk, Finance &Office 2004-present
Manager
Stansfield,Edson C. Superintendent 1980-1986
Strassburg, Floyd Operator 1950-1980
Stoeckel, Eugene Meter Reader(Part-time) 2010-present
Stuhr, Russell Bore Rig Operator, Lead Bore Rig Operator 2014-present
Sumstad, Chris Lineman, Lead Lineworker 2001-present
Sundeen, Glenn Lineman, Line Superintendent 1972-2008
Sykes, Harold Utilities Commission, Office Manager 1969-1982
Takle, Jerry Utilities Commission 2003-2009
Thiry,Michael Lineman, Lead Lineman, Foreperson 1984-present
Thompson, Daryl Utilities Commission 2009-present
Thoreson, Scott Lineman, Lead Lineworker 1993-present
Tralle, James Utilities Commission 1987-2008
Turner,Violet Office c. 1966
Vassar, Leon Line Crew 1964-c. 1975
Volk, Eric Lead Water Operator, Water Superintendent 2012-present
Wagner,Richard Water Services/Locator/Groundsman, 1979-present
Locator/Mapping Technician
Wanner,Karen Accounts Payable &Payroll Clerk 1996-2004
Ward, Derek Lineman 1990-1999
Wark, Curtis Lineworker 2015-present
Weber, Darren Lineworker, Lead Lineworker 2013-present
Westre,Ryan Credit& Collections Clerk 2002-2006
White,Aaron Lineworker 2014-present
130
Wilkes, Donald Water Department Foreman 1951-1982
Wolf, Corey Lineman 2002-2005
Wombill, George W. Superintendent 1947-1952
Zabee, George Utilities Commission 1987-2003
Zehringer,Vance Conservation Improvement Program Consultant, 2008-2009
Interim General Manager
Ziemer, Steve Plant Mechanic &Operator 2003-2015
Zurn, Edward Lineworker, Lead Lineworker 2013-2014
131
132
Appendix D: Service Territory Maps
133
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136
Appendix E: Statistics
2014 Water Department Statistic
5 Million Gallons Per Day 800 Million Gallons
Peak Water System Usage Annual Water System Usage
4,700 Customers $2.1 Million Annual Revenue
11°0 8 Residential 48% ■Residential
Commercial Commercial
2014 Electric Department Statistic
55 MW 280 Million kWh
Peak Electric System Demand Annual Electric System Energy Usage
9,500 Customers $30 Million Annual Revenue
12%
Residential 36% Residential
Com me rcia I 64% Co m me rcia I
88%
Customers by City 425 Miles of Distribution Line
2% 1%
10% �/- T5 Elk River
i h Otsego 18%
'Overhead
i
Dayton Underground
87%; 82%
Big Lake
Township
137
138
Appendix F: Part I Selected Bibliography
ppend
Published
Barnier, Leon. Our Silver Anniversary. 1937-1962:History o f"25 Years o f Pro g ress. Anoka,
Minn.: Anoka County Electric Cooperative, [1962].
Beck, Bill. Interconnections: The History of the Mid-Continent Area Power Pool. Minneapolis:
Mid-Continent Area Power Pool, 1988.
. Northern Lights: An Illustrated History of Minnesota Power. Duluth,MN: The
g n'
Company, 1986.
Boardman, Frances C. "River Towns an Artist's Dream."Saint Paul Daily News,May 1, 1921.
Boese, Donald L. Papermakers: The Blandin Paper Company and Grand Rapids. Minnesota.
Grand Rapids, Minn.: Charles K. Blandin Foundation, 1984.
"Changeover to New Electric Plant Done in Record Time."Sherburne County Star News,March
11, 1948.
Christianson, Theodore. Minnesota:A History of the State and Its People. Chicago: American
Historical Society, 1935.
Clark, J.W. "Bits of Early Elk River History."Sherburne County Star News, February 1, 1934.
"Commercial Club Asks Council Investigate Electric Situation."Sherburne County Star News,
April 23, 1942.
"Court Blocks Plea to Ban Utility Act."New York Times,November 30, 1935.
Dare, Chuck"120 Homes Left Powerless 12 Hours Sunday After Car Snaps Vital Pole."
Sherburne County Star News, January 13, 1977.
Dare, L. A. "Hydro Plant in 48th Year is Still Producing KW at Elk River."Sherburne County
Star News, c. 1964.
"Deal Completed for Purchase of Elk River Power Property."Sherburne County Star News,
January 17, 1924.
"Delay at Power Plant."Sherburne County Star News, January 20, 1916.
"Dissolution Is Proposed."New York Times, April 21, 1943.
"Electric Current Now Turned On."Sherburne County Star News, January 27, 1916.
139
"Electricity."Sherburne County Star News, July 2, 1914.
"Elk River Makes Purchase of Local Hydro-Electric System."Sherburne County Star News,
August 9, 1945.
Elk River. Minn. In Library of Congress Microfilm Collection of Minnesota Insurance Maps,
Reel 4. New York: Sanborn-Perris Map Company, 1894, 1899, 1905, 1911, 1915, 1928.
"Elk River's Fine New Power Plant."Sherburne County Star News, January 27, 1916.
Engel, Dave. The Age of Paper: Consolidation of the Water Power at Wisconsin Rapids 1886-
1904. Wisconsin Rapids,Wisc.: River City Memoirs, 1986.
"Final Signing of Papers Today Transfers System to Village."Sherburne County Star News,
October 4, 1945.
"Flood Gate Goes Out."Sherburne County Star News, August 12, 1920.
"Four Hour Blackout Monday Blamed on Line `Surge,' Fire."Sherburne County Star News, c.
1962.
"Heavy Snow Follows Rain and Sleet Here,"Sherburne County Star News, March 4, 1948.
"Here's Man Who Furnishes Elk River Electricity."Sherburne County Star News, January 27,
1916.
"Holding Company to Be Liquidated."New York Times,November 18, 1943.
Hollenstein, Gene H. Power Development in Minnesota. Bulletin 20. Division of Waters,
Minnesota Conservation Department, Saint Paul, July 1962.
Kroska,Nicholas. Serving the Community: The History of Rochester Public Utilities. Rochester,
Minn.: Rochester Public Utilities, 1988.
Leonard, John William. Who's Who in Engineering.New York: Who's Who Publications, 1925.
"Masonic Rites for Waterman."Sherburne County Star News, January 20, 1921.
"Moving Day on Main Street."Sherburne County Star News, c. September 1972.
Minnesota. General Laws of the State of Minnesota. 1907.
Municipal Year Book 1930. Vol. 1. Minneapolis: League of Minnesota Municipalities, 1930.
Municipal Year Book 1935. Vol. 6. Minneapolis: League of Minnesota Municipalities, 1935.
140
"Negotiations Completed by REA for Purchase Electric Company."Sherburne County Star
News, July 2, 1942.
"New Distribution System Increases Electric Capacity."Sherburne County Star News, c.
November 1957.
"New Rotary Pump to End Water Lack."Sherburne County Star News, c. May 1951.
"New Type Fluorescent Street Lamp Set for Elk River Business Loop."Sherburne County Star
News, c. 1965.
"Nine People Keep Current Flowing."Sherburne County Star News, December 5, 1957.
"Peaceful Uses of the Atom." The Rural Power Condenser, March-April 1965, 1-3.
Pine, Carol.Northern States People: The Past 70 Years. Minneapolis: North Central Publishing,
1979.
"Plans Complete for Municipal Electric Distribution System."Sherburne County Star News,
April 19, 1945.
Plat Book of Sherburne County, Minnesota. Minneapolis: Northwest Publishing Company, 1903.
"Power Plant Doing Well."Sherburne County Star News, February 10, 1916.
"Private Electric Plant."Sherburne County Star News,March 12, 1914.
"RCPA Gets Operating Authorization." The Rural Power Condenser,March-April 1965,4-5.
"Ready to Install an Electric Plant."Sherburne County Star News, February 12, 1914.
"Record Close Bidding for Elk River's Electric System Bonds."Sherburne County Star News,
September 13, 1945.
"Saucy Red Top Gives Water Tank New Lease on Life."Sherburne County Star News, n.d.
Seelhammer, Cynthia, and Mary Jo Mosher, eds. The Growth of Sherburne County 1875-1975.
Becker, Minn.: Sherburne County Historical Society, [1975].
"Storm Prevents Power Changeover."Sherburne County Star News, March 4, 1948.
"St. Paul Man is Low Bidder for Local Power Plant Building."Sherburne County Star News,
February 27, 1947.
"Supreme Court Grants New Trial in Power Cases Here."Sherburne County Star News, January
10, 1924.
141
"To Investigate Electric Light Proposition."Sherburne County Star News,March 5, 1914.
United Power Association: Story of a Rural Electric Cooperative. Elk River,Minn.: The
Company, 1987.
U.S. Federal Power Commission. Directory of Electric Utilities in the United States 1940.
Washington, D.C.: Government Printing Office, 1940.
.Directory of Electric Utilities in the United States 1941. Washington, D.C.: Government
Printing Office, 1941.
.Directory of Electric and Gas Utilities in the United States 1946. Washington, D.C.:
Government Printing Office, 1946.
.Directory of Electric and Gas Utilities in the United States 1948. Washington, D.C.:
Government Printing Office, 1948.
"Utilities Continues Tradition of Service It Started Here in 1916."Sherburne County Star News,
c. 1958.
"Utilities Group to Pay Off$70,000 Bonds."Sherburne County Star News, c. 1954.
"Utilities Installs Mercury-Vapor Light on Elk River Street."Sherburne County Star News, c.
1955.
"Utilities Liquidates $70,000 Bond Series, Saves $6,000 in Interest."Sherburne County Star
News, c. 1954.
"Utilities Plans Purchase of 2500 KW Generating Unit."Sherburne County Star News, c. 1962.
"Utilities Reports $190,000 in Water Works Improvements in '60."Sherburne County Star
News, c. 1961.
"Village Council Names Wombill Superintendent Public Utilities."Sherburne County Star
News, April 10, 1947.
"Village Council Orders Plans for Electric Distribution Plant."Sherburne County Star News,
January 18, 1945.
"Village of Elk River Takes Over Complete Power and Light Plant and System Next Week."
Sherburne County Star News, September 27, 1945.
"Village Signs Contract for New Diesel Generating Units."Sherburne County Star News,
October 17, 1946.
142
"Village to Investigate Cost of Diesel Electric Power Unit."Sherburne County Star News,
November 8, 1945.
"Village Will Proceed with Plan to Purchase Diesel Plant."Sherburne County Star News, March
7, 1946.
"Water Fluoridation Started."Sherburne County Star News, c. 1955.
"Water, Light and Building Commission Formed Locally."Sherburne County Star News,July
10, 1947.
"Waterman Builds First Power-Light Plant Here in '15."Sherburne County Star News, July 23,
1931.
"The Waterman Electric Offer."Sherburne County Star News, July 9, 1914.
"Waterman Sells Power Interest." Sherburne County Star News, October 28, 1920.
"Water, Water Everywhere." The Rural Power Condenser, March-April 1965, 7-12.
"Welsch et al v. Elk River Power&Light Co."Northwestern Reporter 196 (1924): 649-51.
"William A. Baehr, Utility Leader, Is Dead at 69." Chicago Tribune, February 19, 1943.
Winchell,Newton H., and others.History of the Upper Mississippi Valley. Minneapolis:
Minnesota Historical Society, 1881.
"Work Begins on Repair of Elk River Dam."Sherburne County Star News,n.d.
"Work on Dam Completed, Lake Raised."Sherburne County Star News, n.d.
Unpublished
Coke, James G. "Public Utilities Commissions in Minnesota Villages."M.A. thesis, University
of Minnesota, 1952.
Elk River Municipal Utilities Commission Minutes. Elk River Municipal Utilities Office, Elk
River.
Elk River Municipal Utilities Files. Elk River Municipal Utilities Office, Elk River.
Elk River Power and Light Company. "Annual Report to the Minnesota Tax Commission."
1920-1935. State Archives,Minnesota Historical Society, Saint Paul.
Elk River Village Council Minutes. 1907-1916. Sherburne County Historical Society, Becker,
Minnesota.
143
Elk River Village Council Minutes. 1942-1953. Elk River City Hall, Elk River.
Heggland, Timothy F. "Thornapple Dam Historic District."National Register of Historic Places
Nomination. Prepared for the Wisconsin State Historic Preservation Office, Madison,
March 1990.
Hess,Jeffrey A. "Elk River Bridge(HAER No. MN-54)."Historic American Engineering
Survey Documentation. Prepared by Hess, Roise and Company for the City of Elk River,
April 1992.
"Hydroelectric Generating Facilities in Minnesota, 1881-1928."Multiple Property
Documentation Form. Prepared for the State Historic Preservation Office, Minnesota
Historical Society, Saint Paul, October 1989.
Johnson, Russell E. "A Comparison of the Development of the Electric Utility Industry in
Wisconsin and Minnesota."M.A. thesis, University of Minnesota,June 1936.
Kress, Warren Donald. "The Geography of Electric Power in Minnesota."Ph.D. diss., University
of Minnesota, 1962.
Minnesota. Department of Taxation. Transcript of hearing for abatement of 1947 personal
property assessment. 1948. State Archives, Minnesota Historical Society, Saint Paul.
Nelson, Clarence H. "Hydro Electric Stations in Minnesota."Prepared for the Minnesota
Department of Taxation,March 1946. State Archives, Minnesota Historical Society,
Saint Paul.
Sherburne County District Court. Civil Case No. 19080, Village of Elk River v. Elk River Power
and Light Co. Filed 4 February 1943. State Archives,Minnesota Historical Society, Saint
Paul.
Sleight, Reuben B. "Appraisal of the Property of Elk River Power and Light Company, Elk River
Minnesota."Prepared for the Minnesota Tax Commission,November 1922. State
Archives,Minnesota Historical Society, Saint Paul.
Interviews
August 5, 1993: Rodney Anderson, Russell Bradway, Lyle Collins, Evelyn Halter, John
Lundemoe; all in Elk River,by Charlene K. Roise and Deanne Zibell Weber.
August 19, 1993: Russell Anderson and George Zabee, in Elk River,by Deanne Zibell Weber.
144
Appendix G: Part II Selected Bibliography
Published
Elk River Municipal Utilities. Wellhead Protection and Conservation. Elk River: Published by
the company, 2000.
Minnesota Municipal Utilities Association. The Resource. February 2004.
Newspapers
Astrup, Joni. "Council Concurs with Utilities' Big Stone Vote."Elk River Star News,July 17,
2009.
. "Downtown Project Poised to Begin."Elk River Star News, March 23, 2005.
. "Elk River Expands Project Conserve Program."Elk River Star News, June 15, 2011.
. `Elk River Has Chance to Buy into Plant."Elk River Star News, June 19, 2009.
. "Elk River Municipal Utilities Building Demolished for Lot."Elk River Star News,May
4, 2005.
. "Elk River Recognized as a GreenStep City."Elk River Star News, June 29,2011.
. "Elk River Targets Large Water Users."Elk River Star News, October 23, 2010.
. "Elk River Utility Bills Expected to Rise."Elk River Star News, July 20, 1994.
. "Energy City Comes under Budget Scrutiny."Elk River Star News,July 20,2011.
. "Energy Project Celebrates Ten Years."Elk River Star News, October 13, 2012.
. "Great River Energy Plant Hits a Milestone: No Landfilling."Elk River Star News,
April 11,2012.
. "Landfill Gas to Electricity."Elk River Star News, October 4, 2000.
. "Project Conserve: Savings Seen in Utilities."Elk River Star News,November 25, 2009.
Boyle, Jim. "Time Running Out on Big Stone."Elk River Star News, July 6, 2009.
"Bright Idea? Maybe."Elk River Star News, April 15, 2008.
Budig, T. W. "Legislation Is on the Way to Make Elk River `the State Energy City.'Elk River
Star News, February 20, 2007.
145
"City Stuns Utilities."Elk River Star News, April 17, 1991.
"Elk River Looking to Increase Ownership in Transmission Line."Elk River Star News,March
9, 2011.
"Elk River Votes to Increase Investment."Elk River Star News, March 16, 2011.
"ERMU Receives Award."Elk River Star News, September 3, 2010.
"From Wind Turbines to Traffic Lights, Focus Is on Energy."Elk River Star News, October 12,
2005.
Heinzman, Don. "Furor over Utilities Dispute Is Diffused."Elk River Star News, April 24, 1991.
Klinzing, Stephanie. "City Seeks $163,000 from a Reluctant Utility Commission."Elk River Star
News, no month or day, 1987.
. "Hopes for Requested Revenues Dashed by Commission Vote."Elk River Star News,
October 20, 1987.
Marhon, Kirsti. "Landfill to Harvest Methane for Energy."Saint Cloud Times,November 30,
2000.
Muonio, Jake. "City Utility Refunded Stolen Money."Elk River Star News,April 12, 2006.
"New Organizational Structure at Utilities."Elk River Star News, March 5, 2009.
Quanrud, Jessica, comp. "Back When—75 Years Ago."Elk River Star News, July 9, 2003.
Electronic Resources
City of Elk River. "Energy City."Accessed April 15, 2014.
http://www.elkrivermn.gov/index.aspx?NID=739,
Elk River Municipal Utilities. "Fast Facts on the History of Elk River Municipal Utilities."
Accessed March 26, 2014. http://elkriverutilities.com/pages/history.
Elk River Municipal Utilities Commission Resolutions, March 14, 2011. Accessed March 18,
2014. http://webl-elkr.ci.elk-river.mn.us/WebLink8/DocView.aspx?id=100057&dbid=1.
Elk River Municipal Utilities Commission Resolutions, July 17, 2012. Accessed March 18,
2014. http://web 1-elkr.ci.elk-river.mn.us/WebLink8/DocView.aspx?id=100057&dbid=l
146
Environmental Protection Agency. "What Is Refuse-Derived Fuel?"Accessed April 16, 2014.
http://waste.supportportal.com/link/portal/23002/23023/Article/22529/What-is-Refuse-
Derived-Fuel-RDF.
"H. R. 721—Bond Fairness and Protection Act of 1999."Accessed April 21, 2014.
http://beta.congress.gov/bill/106th-congress/house-bill/721.
Unpublished
"Elk River Municipal Utilities Celebrates Fifty Years of Service to Elk River and Surrounding
Areas."Available in Elk River Municipal Utilities files, Elk River.
Elk River Municipal Utilities Annual Reports. Elk River Municipal Utilities, Elk River.
Elk River Municipal Utilities archival files. Elk River Municipal Utilities, Elk River.
Elk River Municipal Utilities Commission Minutes. Elk River Municipal Utilities Office, Elk
River.
Roise, Charlene K., and Deanne Zibell Weber. "A History of the Elk River Municipal Utilities,"
1994. Prepared by Hess, Roise and Company for Elk River Municipal Utilities.
Interviews
Adams, Troy. Interview by Rachel Peterson and Penny Petersen. June 2, 2014.
Dietz, John. Interview by Rachel Peterson and Penny Petersen. June 2, 2014.
147
Elk River . --- i
Municipal Utilities ab
a century of service 1 00 a future of growth y
YEARS
r ATE I
•
th nnivern
sarY Celebrat1O •
OINUSf°r °
ur100 � 4"
J
Thursday August 27th, 2015
4:00 PM - 8:00 PM
Sherburne County Fairgrounds
Catered by Center Cut Meats
LIVE MUSIC
Skitzo Fonik
KIDS EVENTS
Bouncy House,Face Painting,Games
TOURS
of the Historic Power Plant(travel via bus)
Fun for the Whole Family!
Bring your Blankets & Lawn Chairs
For tours of our historic power plant, call 763.441.2020
or email customerservice @elkriverutilities.com.
For more details,visit www.elkriverutilities.com.
#ERMU100 OR . FREE EVENT!
SPONSORS: ,I LIVE MUSIC BY: _
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ilkm Proclamation
River
Designating August 27, 2015, as
13065 Orono Parkway Elk River Municipal Utilities Day
Elk River,MN 55330
WHEREAS, the Elk River Power and Light Company was incorporated in June of 1915
and began providing electricity to the Village of Elk River in 1916;and
WHEREAS, the Elk River Power and Light Company was purchased by the Village of Elk
River on October 4, 1945;and
WHEREAS, In 1949, the Water,Light,Power and Building Commission of the Village of
Elk River became a municipal utility now known as the Elk River Municipal
Utility (ERMU) by Minnesota Statutes §§412.331-412.391,);and
WHEREAS, we,the residents of Elk River,place high value on local control over
community services and therefore have chosen to operate a community-
owned,locally-controlled,not-for-profit electric utility;and
WHEREAS, ERMU continues to provide our homes,businesses, and local government
agencies with safe,reliable, and cost-effective electricity employing sound
business practices designed to ensure value of service at not-for-profit rates;
and
WHEREAS, ERMU will celebrate their 100th anniversary by hosting a community event
on August 27,2015, from 4 to 8 p.m.,at the Sherburne County Fairgrounds.
NOW, THEREFORE, BE IT RESOLVED that I,John Dietz,Mayor of Elk River do
hereby proclaim Thursday,August 27,2015,as Elk River Municipal Utilities Day;and invite
our community to join in celebrating ERMU's century of service and future of growth.
- 15 /- livi ;Or-
Jo(1 J. Di ,Ma)or
ATTEST:
L.....---'-'77—,_ OP
Tina Allard, City Clerk
Phone:763.635.1000 P O I% E R 1 0 BY
Fax:763.635.1090 NATURE
www.ElkRiverMN.gov
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