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4.4. ERMUSR 10-13-15 Elk River . Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Mike O'Neill—Technical Services John Dietz—Chair Superintendent Al Nadeau—Vice Chair Daryl Thompson—Trustee MEETING DATE: AGENDA ITEM NUMBER: October 13th, 2015 4.4 SUBJECT: Environmental Pollution Agency Rules affecting ERMU's Diesel Generation Facility BACKGROUND: In preparation for the 2016 power contract with Great River Energy(GRE) in regards to the Diesel Engine Power Plant; I have been working with vendors/contractors to assess the need and cost of retrofitting and upgrading the exhaust systems for our#3 and#4 generators to bring them into compliance with new EPA regulations. UPDATE: The following information is submitted for your review: 1. Elk River Municipal Utilities (ERMU) is still in the process of deciding whether to upgrade the exhaust systems to bring them into compliance at a cost of approximately $400,000 or to forgo placing them on the in the MISO market with GRE and keep the assets to be used for emergency use only. 2. If at a later time ERMU decides to bring these engines online in the MISO market, the engines will have to be brought into compliance with the rules at that time. 3. ERMU is still receiving quotes from vendors and anticipates having a decision made prior to the December 31st of this year. Staff is meeting with our future power provider and our current power provider in accessing this situation. ACTION REQUESTED: No action requested. • PONEBED 81' Page 1 of 1 NATURE Reliable Public Power Provider POWERED To SERVE 67