2.4. ERMUSR 04-12-2016 i
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:
April 12, 2016 2.4
SUBJECT:
Minnesota Public Utilities Commission Electric Service Territory Boundary Change Approval
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.
The terms negotiated in the service territory transfer agreement assign ERMU the authority to
jointly file the request for MPUC to modify the electric service territory boundary. Connexus
reviewed and approved that language in early January 2016. This filing was then made
electronically on January 22, 2016.
DISCUSSION:
The joint request for the modification to the electric service territory boundary was considered by
the MPUC during their March 24, 2016, meeting. The MPUC approved the request and directed
MnGeo to modify the State electric service territory maps.
ACTION REQUESTED:
No action requested.
ATTACHMENTS:
• Letter—Minnesota Public Utilities Commission Electric Service Territory Boundary
Change Approval - Docket No. E234, E101/SA-16-58—Dated March 25, 2016
•
POW ( H ( D 11
Page 1 of 1 NATURE
Reliable Public
Power Provider P OWERED T O S ERV E
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BEFORE THE MINNESOTA PUBLIC UTILITIES COMMISSION
Beverly Jones Heydinger Chair
Nancy Lange Commissioner
Dan Lipschultz Commissioner
Matthew Schuerger Commissioner
John Tuma Commissioner
Kaela Brennan SERVICE DATE: March 25, 2016
McGrann Shea Carnival Straughn &Lamb, Chtd.
800 Nicollet Mall, Suite 2600 DOCKET NO. E-234,101/SA-16-58
Minneapolis, MN 55402
In the Matter of the Joint Request of Elk River Municipal Utilities and Connexus Energy to
Modify Electric Service Territory Boundaries
The above entitled matter has been considered by the Commission and the following disposition
made:
Approved the requested service territory boundary transfer from Connexus Energy
to Elk River Municipal Utilities.
MnGeo should make the requested changes to the service territory maps.
The Commission agrees with and adopts the recommendations of the Department of Commerce,
which are attached and hereby incorporated into the Order. This Order shall become effective
immediately.
BY ORDER OF THE COMMISSION
•
t
Daniel P. Wolf
',:t4k: ...v Executive Secretary
This document can be made available in alternative formats(e.g., large print or audio)by calling
651.296.0406 (voice). Persons with hearing loss or speech disabilities may call us through their
preferred Telecommunications Relay Service.
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February 10, 2016
Daniel P. Wolf
Executive Secretary
Minnesota Public Utilities Commission
121 7th Place East, Suite 350
St. Paul, Minnesota 55101-2147
RE: Comments of the Minnesota Department of Commerce, Division of Energy Resources
Docket No. E234, E101/SA-16-58
Dear Mr. Wolf:
Attached are the comments of the Minnesota Department of Commerce, Division of Energy
Resources (the Department or DOC) in the following matter:
The Joint Request of Elk River Municipal Utilities and Connexus Energy, collectively the
Parties, to Modify Electric Service Territory Boundaries.
The petition was filed on January 22, 2016 by:
Kaela Brennan
McGrann Shea Carnival Straughn & Lamb, Chtd.
800 Nicollet Mall, Suite 2600
Minneapolis, MN 55402
The Department recommends that the Minnesota Public Utilities Commission (Commission)
approve the requested service territory boundary transfer from Connexus Energy to Elk River
Municipal Utilities, and is available to answer any questions the Commission may have.
MnGeo should also make the requested changes to the service territory maps.
Sincerely,
/s/ DALE V. LUSTI
Financial Analyst
DVL/It
Attachment
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MINNESOTA DEPARTMENT OF
COMMERCE
BEFORE THE MINNESOTA PUBLIC UTILITIES COMMISSION
COMMENTS OF THE
MINNESOTA DEPARTMENT OF COMMERCE
DIVISION OF ENERGY RESOURCES
DOCKET No. E234, E101/SA-16-58
I. SUMMARY OF PROPOSAL
On January 22, 2016, Elk River Municipal Utilities (the Municipal)) and Connexus Energy (the
Cooperative), collectively the Parties,jointly filed a petition under Minn. Stat. Section
216B.39, subd.3, asking the Minnesota Public Utilities Commission (Commission)to modify
the Parties' service territory boundaries.
II. DEPARTMENT ANALYSIS
A. TRANSFER OF THE AFFECTED AREA FROM COOPERATIVE TO THE MUNICIPAL
Minnesota Statutes section 216B.44, subd. (a) states:
... whenever a municipality which owns and operates an electric
utility (1) extends its corporate boundaries through annexation
or consolidation, or (2) determines to extend its service territory
within its existing corporate boundaries, the municipality shall
thereafter furnish electric service to these areas unless the
area is already receiving electric service from an electric utility,
in which event, the municipality may purchase the facilities of
the electric utility servicing the area.
Exhibit A to the Petition is a map that depicts the boundaries of the Affected Area. According
to the Parties, the Affected Area involves approximately 1,984 acres, and 958 customers
(832 residential, 101 commercial, and 25 industrial). Although the Parties indicated they do
not have a separate legal description prepared of the Affected Area, they are willing to
provide whatever information is helpful and reasonably requested by MnGeo to facilitate the
adjustment in the official maps. The Parties indicated that they do have a Shape or CAD file
of the map attached as Exhibit A.
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The Parties provided copies of letters that were mailed to all of the affected customers. First,
Connexus sent the affected customers a letter informing them that they would soon receive
their electrical service from Elk River Municipal Utilities, due to a negotiated agreement.
Later, the Municipal sent the affected customers informational letters describing services
and rates they provide, as well as an estimated date when the physical service provision will
transfer from Connexus to the Municipal.
B. COMPENSATION
Minnesota Statutes Section 2166.44, subd. (b)states:
The municipality acquiring the facilities shall pay to the electric
utility formerly serving the area the appropriate value of its
properties within the area .... In the event the municipality and
the electric utility involved are unable to agree as to terms of
the payment or exchange, the municipality or the electric utility
may file an application with the commission requesting that the
commission determine the appropriate terms for the exchange
or sale.
The Department notes that the Parties have agreed upon appropriate compensation.
Thus, the Department agrees that the Parties' request to establish the Affected Area as part
of the Municipal's service area is consistent with Minn. Stat. 2166.44, subd. (a) and (b).
III. RECOMMENDATION
The Department recommends that the Commission approve the requested service territory
boundary transfer from Connexus to Elk River Municipal Utilities. MnGeo should make the
requested changes to the service territory maps.
/It
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