5.2. ERMUSR 03-15-2016 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:
March 15th, 2016 5.2
SUBJECT:
Landfill Gas Plant 2015 Operational Results
BACKGROUND:
Each year ERMU can provide bonus payments to Sherburne County and the Waste
Management/Elk River Landfill provided the financial means and plant capacity factors are met.
DISCUSSION:
For the calendar year of 2015 the landfill gas plant had a capacity factor of 95.49%and
generated approximately 25.5 kWh. That is enough electricity to supply 2,900 average
residential customers in Elk River for one year. This year the Waste Management/Elk River
Landfill bonus was $2,584.59, and Sherburne County received a bonus of$20,000 based on the
financials for 2015.
In 2015 there were mechanical issues with the switch gear that resulted in the loss of production
on one engine for almost 5 weeks. This drastically impacted the production and the bonus to
Waste Management/Elk River Landfill. The problems have been corrected and will hopefully
not impact the operational capabilities of the plant as significantly as they did in 2015.
The bonus payments are not guaranteed and can change or be eliminated base on the variability
of labor,material,unexpected or increased maintenance costs, or loss of production for various
reasons.
ATTACHMENTS:
• Letter to Waste Management—LFG to Electric Generation Facility Performance for 2015
• Letter to Sherburne County—LFG to Electric Generation Facility Performance for 2015
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Elk River ,
Municipal Utilities ,
a century of aervree 100
a furore of growth YEARS
February 26,2016
Elk River Landfill
Mr.James Hamann
22460 Highway 169
Elk River,MN 55330
Subject: LFG to Electric Generation Facility Performance for 2015
Dear Mr. Hamann;
Elk River Municipal Utilities(ERMU)is pleased to report that the landfill gas to electric generation
facility met the production standard of 95%for 2015. The actual capacity factor was 95.49%. As a
result of exceeding the standard Elk River Landfill is receiving an additional bonus payment of
$2,584.59.
Production for 2015 was a bit less than 2014 as a result of reduced production caused by one unit being
offline. A worn circuit breaker and subsequent replacement equipment sourcing troubles resulted in an
extended period of no production from the one unit.
The measured production for 2015 was approximately 25.5 million kWh. That is equivalent to the
average annual energy consumption of 2,900 residential customers of Elk River Municipal Utilities.
If you have any questions,please feel free to contact Tom Sagstetter at(763) 635-1332.
Best regards,
Troy Adams,P.E.
General Manager
Cc: ERMU Commission
Don Yurecko-Elk River Landfill Gas Plant Manager
Tom Sagstetter-ERMU Conservation and Key Accounts Manager
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IPIWEBEO BY
13069 Orono Parkway • P.O. Box 430 • Elk River, MN 55330-0430 NATURil
Phone: 763.441.2020 • Fax: 763-441-8099 • www.elkriverutilities.corn
Reliable Public P o VVERED T O S ERV E
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tElk River
Municip al Utilities
e century of service 100
a future of growth _
YEARS
February 26,2016
Sherburne County
Mr.Dave Lucas
Solid Waste Administrator
13880 Business Center Drive
Elk River,MN 55330
Subject: LFG to Electric Generation Facility Performance for 2015
Dear Mr.Lucas;
Elk River Municipal Utilities(ERMU)is pleased to report that the landfill gas to electric generation
facility met the production standard for 2015. By exceeding the production standard,ERMU is able to
provide Sherburne County with an additional bonus payment of$20,000.
The capacity factor of the landfill gas to electric generation plant was 95.49%that lead to the production
of approximately 25.5 million kWh. That is equivalent to the average annual energy consumption of
2,900 residential customers of Elk River Municipal Utilities.
Production for 2016 is expected to be a bit higher. In 2015,the production was decreased as a result of
circuit breaker troubles and finding replacement equipment. These issues have been resolved and
moving forward there should not be any major sourcing problems for replacement equipment.
If you have any questions,please feel free to contact Tom Sagstetter at(763) 635-1332.
Best regards,
C-171
Troy Adams, P.E.
General Manager
Cc: ERMU Commission
Jim Hamann-Waste Management District Manager
Don Yurecko-Elk River Landfill Gas Plant Manager
Kathleen Heaney- Sherburne County Attorney
Tom Sagstetter-ERMU Conservation and Key Accounts Manager
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13069 Orono Parkway • P.O. Box 430 • Elk River, MN 55330-0430AURY
Phone: 763.441.2020 • Fax: 763441-8099 • www.eikriveivtilities.cofn
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