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2.6. ERMUSR 02-09-2016 Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Troy Adams, P.E.—General Manager John Dietz—Chair Al Nadeau—Vice Chair Daryl Thompson—Trustee MEETING DATE: AGENDA ITEM NUMBER: February 9, 2016 2.6 SUBJECT: Notice to Connexus Energy of Electric Service Territory Area 2 Transfer Date BACKGROUND: In March 2015 Elk River Municipal Utilities and Connexus Energy executed mutually agreeable terms with a multiyear arrangement for the Connexus service territory within the City of Elk River corporate boundary to be transferred to ERMU. DISCUSSION: In this service territory transfer agreement ERMU and Connexus had already established that the first area was to be transferred in 2015 and the second area in 2016. On January 12, 2016, formal notice was given to Connexus to allow for planning and scheduling of the reintegration work needed to facilitate the transfer. The transfer date has tentatively been scheduled for late September 2016. ATTACHMENTS: • Notice of Electric Service Territory Area 2 Transfer Date—January 12, 2016. E. POWERED BY Page 1 of I NATURE Reliable Public' Power Provider P()WERE!) T O S ERV E 74 Elk River Municipal Utilities o century of servlee 100 a future of growth YEARS January 12, 2016 Connexus Energy Attn: Greg Ridderbusch President & Chief Executive Officer 14601 Ramsey Blvd NW Ramsey, MN 55303 Re: Notice of Electric Service Territory Area 2 Transfer Date Dear Mr. Ridderbusch: Per the provisions of our Electric Service Territory Agreement dated March 20, 2015, the transfer date for Area 2 shall occur in the year 2016 on a date mutually agreed upon by the parties. The intent behind the notice provision included in the agreement was to provide sufficient time for reintegration and for engineering evaluation of plant. This letter is to serve as formal notice of Elk River Municipal Utilities' intent for a transfer of Area 2 in late 2016. A September transfer is preferable, however, the actual date will be chosen through a collaborative process with Connexus Energy. Best regards, Tr Adams, P.E. General Manager PBWEREB BY jr 13069 Orono Parkway • P.O. Box 430 • Elk River, MN 55330-0430 NATURE �� '. Phone: 763.441.2020 • Fax: 763-441-8099 • w� '.elkriverutilities.com Reliable Public POWERED T o S ERV E Power Provider 75