Loading...
6.1.a-e. ERMUSR 09-13-2016 ,,/ 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: September 13, 2016 6.1a SUBJECT: Staff Updates—General Manager DISCUSSION: • The Board of Directors of the Minnesota Municipal Power Agency(MMPA)met on August 23, 2016 in Shakopee,Minnesota. Construction continues to move ahead on MMPA's 46 MW Shakopee Energy Park project. The project remains on schedule for a Q2 2017 in-service date. MMPA sold bonds to fund the Shakopee Energy Park project on July 28. The yield to maturity on the 31-year bond issue was 3.37%. Closing on the bonds occurred on August 25. The Board also discussed the status of MMPA's renewable contracts for both wind and solar power. Attached are MMPA's 2015 annual report and unaudited financial statements. • The Minnesota Municipal Utilities Association(MMUA)Executive Leadership Development Program committee held interviews for a program director on August 24 and 25.The selection will be made no later than September 30. • Staff and I attended the NISC Member Information Conference from August 7—8. Typically this would not be something I would attend,but due to our involvement with NISC leading to their decision to provide a fund accounting module we felt an ERMU leadership presence was needed at this conference. Our NISC Regional Business Manager has facilitated some meeting times for ERMU to engage key NISC leadership as well as an opportunity for me to meet with NISC's CEO Vern Dosch. ATTACHMENTS: • 2015 Minnesota Municipal Power Agency Annual Report • Minnesota Municipal Power Agency Unaudited Financials—YTD June 30, 2016 POWERED BY Page 1 of 1 NATURE Reliable Public Power Provide( POAERED To S E P.v E 110 Minnesota Municipal Power Agency I Annual Report 2015 s Yv r -=''PSIS>< r a z > J',d s'a.,,,,,,,,,,,,,1:0,,,,:::,,,:4-i:,..414,,,,4-,,,,,,.,',w,,,,:1 t r . > >;h ,°"t -'. 4 .; r a F � yr'a r59ii. 5 iT p4 xn "st ^ 5 vwKsv { € efni� ,� r s 1:E e .r*. p-Za ,, s r , d 1, � de 5 , A - � V5y1:f } sa , a • r s z ax d k a they ✓^ 'n5}t . # ,}; € '-`` . _-x v T.y'C. '' {i' .-4 .'' _ - r < �y .r'n �y` d 5 m e M: .; 20 YEARS of POWER SUPPLY '' ¢ X4,9 P 4n -., E :::- S i' M I, 1+ x:.X .. r � , y { yy;;"��i' '4^".s..3` *"'C: C"t: gr-,,,,,:44,,,,,i.,,0_54,41:5,,_ F, .R i" to ,�`. :- M:5 ;� -,°_`'�'' u�4 '4: 't ,s(�i," 'f. iW 1, ib,. .1 M :4 ',/,. ' ._, :: 4_ 3 m`-� fi N.. '^,. 's x& -' a - $ - _,. -` """. t `- s .Eye + ,.' , $a - .- , s t i4.4,-€ €'`:` ,1,ova ,r '�- ,,.,-agif, •.".1'.:r-, "' - aka '-d' " ' , r ry 1 S w -'r`'Sxs:r , 't ' n exam' +,ff.ra.«... .. �_,.,, '��; ,..Nrtia.; .`:�:ii a r ::4 ,''' ., Kms", V&> a ,�� - - - p �' _ 9 nF .3. r1, +sir vi 441a,i0,-,ip opoo ,,,,.._, k,' '+ ,. _�_,-1,,, �. `� to a 'a:�K-s ,.a. .,„,.tea- ,k . '. IFh "� � *mY` � � k1 G7' - � C P xg h -t”€NYr # ` 1.' a �s ` inti l - , 3 '+P +b R a iz t syr-fit:. ,F mgf,l Ais s y; xo: :gist Pr •a L a`' e,X '' .ice l p *` Anoka I Arlington I Brownton I Buffalo I Chaska I East Grand Forks I Elk River I Le Sueur I North St.Paul I Olivia I Shakopee I Winthrop '1-r r"€¢�'x .r .,,+ :x - - �vv f ,, �'S,Idi£ , t . R ;! 'l 'R`y.. :�{'t - £ -�^ � ain'* � M>s �xg St Fh � '� €� ,`.+.,," ail � '� 20 YEARS the oower of our hometown The Agency's mission is to provide reliable, competitively-priced energy to its members and to create value for both the Agency and its members. MMPA CELEBRATES 20 YEARS of POWER SUPPLY We are pleased to present the Minnesota Municipal Power Agency's(MMPA) 1 2015 Annual Report and to share with you our accomplishments and recognitions over the past year. ! This year signifies a major milestone for the Agency.In 2015,MMPA F .nx y 7� celebrated 20 years of being the power of your hometown.What , started out as 8 municipal utilities banding together to provide reliable, competitively-priced power for their customers has grown to 12 members, �e } • `' an Agency-owned power generation portfolio,and a customer base of nearly 0.4', 150,000 Minnesotans. As the Agency has continued to grow,its commitment to its members remains the same—to provide reliable, competitively-priced power to its members and to create value for both the Agency and its 12 Minnesota member municipal utilities.In 2015,the Agency delivered on its mission and accomplished this by being strategic,well- managed,and financially conservative. Over the past 20 years,the Agency has been a leader in power generation development.Through its long-term approach to power supply planning,MMPA has successfully built efficient,innovative,and environmentally respon- sible generation resources.We are especially proud to share that the Agency's newest generation asset,Hometown BioEnergy(HTBE),was recognized by the American Biogas Council as the 2015 Municipal Biogas Project of the Year. The facility was awarded for its leadership,innovation,and contribution to the growth of the U.S.biogas industry. Looking ahead,the Agency is developing its distributed generation program to meet MMPA's projected growth over the coming years.This program expects to place natural gas fueled distributed generation in MMPA's member communities of Shakopee, Chaska,and Anoka.The first facility in the program, Shakopee Energy Park,broke ground in spring 2016 and is expected to be in service in 2017. In addition to supplying reliable power,MMPA is committed to supporting the communities we serve.The Agency accomplishes this in multiple ways,including an Energy Education Program,development of local power generation in member communities,providing conservation and renewable energy programs to members'customers and converting waste from our member communities into a valuable source of energy at the Hometown BioEnergy facility. Planning for the future has brought us to where we are today—an innovative municipal power agency that provides reliable,competitively-priced power to our member communities,while creating value for both the Agency and our members.As we celebrate the many achievements and successes of MMPA over the past 20 years,we are humbled and honored to have served as the"power of your hometown."We look forward to providing our member communities'power supply for many years to come. Sincerely, 61.keti 0 bafbx_._ Steve Schmidt Derick 0.Dahlen Chairman,MMPA Board of Directors Executive Manager,MMPA President and CEO,Avant Energy,Inc. East Grand Forks` . VVDAmonoer commLntcs Buffalo Brownton Elk River Anoka Winthrop /. Shakopee ' ._ Olivia atr Y.t North St. Paul ■ ■ ■ ■ • ■■ • ■ A Chaska Arlington Sueur 17L12 .. 1 .24 MMPA Member City Population Total Retail Customers Served (2010,U.S.Census) (2015) Who We Are Together, our momoers orovicc oower to -early 150000 Vn -esotans, Our Mission Our Members The Minnesota Municipal Power Agency's The Minnesota Municipal Power Agency is (MMPA) mission is to provide reliable, composed of 12 Minnesota member municipal competitively-priced energy to its members utilities. Our member communities include the and to create value for both the Agency and its cities of Anoka, Arlington, Brownton, Buffalo, Minnesota member municipal utilities. MMPA Chaska, East Grand Forks, Elk River, Le Sueur, accomplishes this by being well-managed, North St. Paul, Olivia, Shakopee, and Winthrop. financially conservative, and innovative. MMPA provides electricity to its municipal The electric utility industry is experiencing a utility members who then deliver and sell that time of great change. Our members compete electricity to customers in their communities. to attract new customers and retain existing The Agency's members have a combined customers based on price, reliability, and population of nearly 150,000 and provide customer service. MMPA's objective is to power to 71,624 homes and businesses provide energy and other services to enable across Minnesota. our members to compete successfully. Sales to Members Coincident Peak Load in megawatt hours 350 — in megawatts 1,600,000 — 300 — 1,400,000 — 321.3 1,488,033 1,495,981 1,498,338 MW 308.4 1,200,000 — MWh MWh MWh 250 — MW 297.2 MW 1,000,000 — 200— 800,000 — 150— 600,000 — 100— 400,000 — 200,000 — 50— 0 — 0 - 2013 2014 2015 2013 2014 2015 2015 MMPA Annual Report 3 115 . ,. Who We Are Through ✓ VPA rT1emoersnio, each community has a Voice in oowersuooy cccisions aliccting its c-orgy fLtLre. MMPA Officers MMPA Board of Directors fi; Anoka Elk River ., Steve Schmidt Troy Adams Councilman Utilities General Manager r .5 Ed Evans* Allan Nadeau* Utility Advisory Utilities Commissioner Board Member Le Sueur Arlington Mark Huntington Liza DonabauerCouncilman City Administrator Greg Drent* �, Lisa Tesch* Public Services Director Deputy Clerk North St. Paul Brownton Brian Frandle '‘,./ I Curt Carrigan Director of ', Councilman Electric Utilities Jason Ziemer* Buffalo Steve Schmidt Matt Podhradsky City Manager Chairman Vice Chairman Merton Auger City Administrator Olivia Liza Donabauer John Crooks Secretary Treasurer Joseph Steffel* Bernard Johnson Utilities Director Councilman Chaska Dan Coughlin* MMPA is governed by a Board of Directors. Matt Podhradsky City Administrator The Board is responsible for setting policy, City Administrator Shakopee for approving investments in new plants, and Greg Boe* John Crooks for overseeing management. Each MMPA councilman Utilities Manager member has a representative and an alternate East Grand Forks Joe Helkamp* Utilities Commissioner representative on MMPA's Board. Dan Boyce Utilities General Manager Winthrop Jeff Olson* Peter Machaiek Distribution Superintendent Alderman Jenny Hazelton* City Administrator *Alternate 4 2015 MMPA Annual Report ;.. 116 Who We Are Member Rates Our Management MMPA understands the importance of providing MMPA is managed under long-term contracts'--' its member utilities with competitively-priced by Avant Energy, Inc., an energy management ° .. power. In 2015, MMPA's average rate to company based in Minneapolis, Minnesota. Avant has more than 30 years of experience members was $69.63 per MWh, or just under in the electric power industry and provides a seven cents per kilowatt hour (kWh). The wide range of services to the Agency includln Agency's rates continue to be competitive strategic management, day-to-day energy. with other local utilities thanks to MMPA's market operations, power plant development,' long-term strategic planning and financial energy trading, accounting and finance, and n: focus. During 2015, the Agency's average rate regulatory compliance was lower than that of a comparable investor- Avant's specialized expertise in energy markets, .: owned utility, generation and transmission power supply planning, and development of 4. } cooperative, and municipal power agency in power plants is important to MMPA's long-' the state of Minnesota. term success. Avant is an innovator, pursuing forward-thinking solutions in the areas of power generation, energy conservation, and ;; renewable energy . Avant Average MMPA Rate to Members Management in dollars per megawatt hour . Derck O.Dahleri 70 — President and CEO 60 _ 68.24 69.73 69.63 $/MWh $/MWh $/MWh ` Oncu H. Er 50 — I Vice President, "* Planning 40 — David W.Niles 30 — Vice President , i &Controller 20 — - . s Kelsey E.Dillon Vice President, / Consulting and 0 — 1 i Development 2013 2014 2015 • 2015 MMPA Annual Report 5 117 MMPA HIGHLIGHTS The timeline below highlights some of MMPA's significant accomplishments and successes over the course of the Agency's history. 1992 2001 2005 MMPA Founded as Minnesota River Buffalo Joins MMPA Political Subdivision of Station Completed the State of Minnesota MMPA adds another Leased from the MMPA member, growing the Eight Minnesota municipal member city of Chaska, the Agency by another 10%. utilities joined together with Minnesota River Station is the goal of developing an a 49 MW gas-fired peaking 2005 economical wholesale power plant. First Phase of Faribault electric supply. Energy Park Completed Anoka Le Sueur Arlington North St.Paul The Agency's first owned Brownton Olivia 2004 asset, Faribault Energy Park, Chaska Winthrop — East Grand Forks & enters service as a simple 1995 Shakopee Join MMPA cycle gas-fired power plant. Begins Supplying MMPA grows to 10 communities Power to Its Members as it admits 2 new members, increasing the size of the Agency MMPA begins supplying i by approximately 50%. power to its members from power supply resources through contracts with other utilities. 6 2015 MMPA Annual Report 20 YEARS of 0 R HISTORY POW R SUPPLY x � 011111 41Ik MMPA Board of n N Directors and / 110.11 � ^� • Management +:�" , / f _ E ' A -40 1. 2007 2011 2014 Faribault Energy Park Oak Glen Wind Farm Energizes First Grand Opening (2nd Completed Transmission Line Phase Completed) MMPA completes its first The Agency's first-owned Thousands attend the grand utility-scale wind project, a transmission asset,a 6 mile opening of Faribault Energy 44 MW wind farm located in 115kV transmission line in Park, which celebrates the Blooming Prairie, Minnesota. the member community of plant's completion as an effi- Anoka, is energized. cient combined-cycle facility. 2013 2015 Elk River Joins MMPA MMPA Celebrates 20 2010 Years of Power Supply The Agency admits its 12th Hometown WindPower member,which will begin Completed purchasing power from 2016 MMPA in 2018, growing Shakopee Energy Park The Agency installs 160 kW MMPA by another 20%. Begins Construction wind turbines in member cities, making MMPA the first 2013 The Agency starts construction municipal power agency with Hometown BioEnergy on a 46 MW natural gas a turbine in every community. distributedgeneration facility. MMPA diversifies its renewable portfolio by adding 8 MW of dispatchable, renewable energy. 2015 MMPA Annual Report 7 d'F� '" r y.. -: $fi� a ms's . „ '' _ -._.> _ ,=- "` _ 4 m. ..w- W x t !!&74P Y' —w .r.M•....00.,........... .r.7 in saC Y tis r.01 .— _ ' +�.. ..»... ro:+Yr+- -'✓ • rt' F62441 l' F tl .:1.•7•:;:40'.:4;":: t • a a a , Asa,. ,a� nq• .u.�. " n I ,y ,'^ ,QwQ. ,t , •a . m u, w�• .: 1''1n rr�f�`9A �jr"y .,r ..., .'P ..4•',' '' . ..j.rtiii ,-;i(7••tir/2:. Eiri...;:4';':;:.•.. • /... .....!,:::,..".„...„.:1,..,.:,...............,...." ra;L,T xFk , yy t Power Supply MMPA CELEBRATES 20 YEARS of POWER SUPPLY.- Power supply in the United States has changed greatly over the past 20 years. In this changing environment, MMPA's focus has been to maintain power supply flexibility to ensure that the Agency is best positioned to continue delivering reliable, competitively-priced power to our members, while creating value for the Agency and our members. MMPA takes a long-term approach to power supply planning that includes assembling a diversified portfolio of owned and purchased generation containing both conventional and renewable resources. Minnesota River Station The Minnesota River Station (MRS) is a 49 Built in two phases, FEP began operation as a MW power plant that provides local, reliable, simple-cycle facility in 2005 to satisfy the need peaking power for the Agency. The simple- for peak summer energy use and went into full cycle facility entered service in 2001. The combined-cycle operation in 2007. The plant plant is located in, and owned by, the member runs primarily on natural gas but also uses community of Chaska. The Agency has a long- fuel oil as a backup fuel. The facility provides term lease with the City of Chaska for the approximately 70% of the Agency's capacity facility through 2031. requirements. Faribault Energy Park FEP is an integral part of the local community In 2001, MMPA's management identified a by providing education, recreation, and regional need for energy during times of peak aesthetic beauty. Students and area residents use in Minnesota. In response to this need are welcomed to visit the facility's 35 acres of for energy, electric utility industry conditions, park-like wetlands. While on site, guests are and the Agency's projected growth, MMPA able to view the control room and the steam built its first owned generation asset — turbine from an observation area. In addition, Faribault Energy Park (FEP). The 300 MW visitors can also view educational displays, a combined-cycle facility, located in Faribault, wind turbine, and a solar array, and can even Minnesota, was designed to be a model of drop a fishing line into one of the ponds. environmental responsibility and innovation. 2015 MMPA Annual Report 9 • f yam. '$ ter,.^ ___ _.. „ __. ..cam: ""-... -'x__ .< -- . ......A `'` x3 ..�, fid `- - s ■ , , u. f .. f � .t f �t -v' ,,`,, t i s Power Supply V VDA is comnittcc to provicing our nombcrs with ccan roewaoo onergy MMPA is expanding its portfolio of renewable resources (wind, solar, and biomass). These resources support meeting the Minnesota Renewable Energy Standard (RES) and our members' customers' demand for renewable energy. The RES requires 25% of the Agency's energy to come from renewable sources by 2025. Hometown WindPower Hometown BioEnergy In 2010, MMPA placed a 160 kW wind turbine MMPA's Hometown BioEnergy (HTBE) facility in each member community, as well as at its was recognized by the American Biogas Faribault Energy Park facility. This innovative Council as the "Municipal Biogas Project of Hometown WindPower program made MMPA the Year" in 2015. The 8 MW biomass facility, the first municipal power agency in the country located in the MMPA member community of to have a wind turbine in each member Le Sueur, provides local, dispatchable, on-peak, community. These turbines are a resource to renewable energy for the Agency. help community members learn about the HTBE uses anaerobic digestion technology benefits and operating characteristics of wind to produce biogas from agricultural and power, while also demonstrating the Agency's food processing wastes from a number of commitment to renewable energy. local sources, including 4 MMPA member Oak Glen Wind Farm communities. The biogas serves as fuel for Oak Glen Wind Farm (OGWF) is a 44 MW the reciprocating engines, which produce wind project located near Blooming Prairie, electricity. Unique compared to other forms Minnesota. The project is composed of 24 of renewable generation, the plant has turbines that produce renewable energy for significant gas storage, allowing the Agency the Agency. The wind farm is projected to to generate electricity during on-peak hours produce approximately 150,000 MWh of when electricity generation is more valuable. renewable energy annually. OGWF entered The facility also creates valuable by-products, service in 2011 and has consistently performed including a liquid by-product used for fertilizer at a high level of reliability. by local farmers. 2015 MMPA Annual Report 11 --- A e 2 Er 0,, / ? Col I 1 * ' OaAke, lk' .4b1CP ' / /, / ‘64 0 r'..41;ekt.:24« 00::''-'::- if:'-'-'f .,1%,:.;...ik, 1 /• 44, '';*, N,, * ' ,04.a.'1 i 401ktli •At4.4,‘.. - '7 , 0 -..„,- - ,•,i 41..." 1&, / i *,•*.:. ... '''' —ZNiktiks. s; ', i'ffi'-401INTi ' i ' 4,"; [ / 44t ,.:7,,;:*11;;,,,,I; et:::', tr 1-. ,\ .' --- / IPIP ', ,, 7,11/4,1,, -.1c-: ./4* % -, --...../ , . , ,', .k ti,•' ipsiik / * , .,,, ''' %,,o, ,4,,,,v,: ,,,,otar ,v) 47-441„ 7 :.4.3'.- • / s' ,,,,V,,,, ,,,,y-*`•; '`,„1 ''44110N:444%.11, lipit,ir- /P11410, / ,' ' ° '''' , ,4 ',.-/ ,,,, \ •"}I'&, *4 4-0-1. ,k,. 4,,,,• „,,,,„v ./;,72/ **mit : , Ns ito e....j —Ire) , ," 't, 4 ‘ks.1 43//,/ 4feli 1.,• ''' '* ' .44,, re -- - / •114, , , ... / , .,.. 1 , , . -., 0, l'—ir , , 4711, As,-.4,:,-----,..„,,..,•-. .., s • 8, . . ‘ ,„ -,, -- ., . -,, -- t. ..r.7,•• - '' • -... ' „,. • , 40'. : ' ,..-„,-/),„„ i 1,4k ilgt.'' ' -^1. * t - - ", ''''' ' ". If--,--,.... 11, .- •‘ ilot,tA.,,- ,,,. '•• -,-, ,:t,41, 1 ,.. . .,.tt 0, il * ,..;•.-. •\,,,,, •kw.; ...0 ,,,t% 4 A' togir r 02%.,1 4'.. ITS" X(‘,„ i i ., -";--i'' / 1 '-"IT` „4.,10',..,'i f 11,A morditi L411. '.., 4,* '';.,;4:- • / it*41.441511&t.,,. ' ''''',,&.4'.' ..\ -. '''2114K 41‘44.7• '1: 4,400/ 11 4 ito-o*ztwof4.:' '''•...—""IFPF.-N`-'4***1111;4* N •,.‘ -41 '2 a .A . 41464 -.41r 124 Power Supply VRAsexoanoHg its oowor su o o y portfo MMPA's members' electric demands have grown and are expected to continue to grow over the coming years. This, combined with Elk River beginning to buy power from MMPA in 2018, creates the need for the Agency to add generating resources to its diversified portfolio. Distributed Generation Program MMPA's distributed generation program will SEP will provide the Agency with peaking power support the Agency's projected growth. The during times of high energy use in the market. program expects to place natural gas fueled The facility will provide additional benefits to the distributed generation in the member communities Agency, including local interconnection to avoid of Shakopee, Chaska, and Anoka. By locating high voltage transmission costs and increased generation at or near load, the program expands local reliability. SEP also helps support business the Agency's commitment to local power development in our member communities. generation within our member communities. Like other MMPA facilities, Shakopee Energy Shakopee Energy Park Park goes beyond power generation and Shakopee Energy Park (SEP) will be the first seeks to provide the Agency and its member natural gas fueled distributed generation facility community of Shakopee with a long-term in the distributed generation program. The 46 energy supply asset for many years to come. MW facility near Canterbury Park broke ground in spring 2016 and is expected to be in service in 2017. issomkr lir 1 A 1 iY1 2015 MMPA Annual Report 13 Power Supply Black Oak Getty '" .� To support the Agency's commitment to ' � renewables, MMPA signed a twenty-year .; � a contract with Sempra U.S. Gas& Power for ,, the output of the Black Oak Getty Wind Project in Stearns County, Minnesota. Construction of the 78 MW wind project ...011Pr . k began in spring 2016 and is expected to be complete in fall 2016.The contract will supply approximately 300,000 MWh of renewable energy annually for the Agency. Buffalo Solar To further diversify the Agency's renewable portfolio, MMPA is working with a developer j on a utility-scale solar project in its member ... �, community of Buffalo. MMPA will purchase the output from the 7 MW solar project via a power purchase agreement. The Buffalo solar project is expected to be in service in 2017. Renewable Energy Credits MMPA purchases renewable energy credits (RECs)from a variety of renewable facilities in Minnesota and the Midwest. These RECs are sourced from a variety of renewable technol- ogies and supplement the Agency's owned renewable generation. REC purchases support the Agency's commitment to renewables and meeting the RES requirements from the State of Minnesota. Power Supply V V strives to orovice rc I a J c, co m octitivc y-oriccc oower to or members. To position the Agency to deliver on its mission, MMPA invests in transmission and manages a robust hedging program. In response to volatile energy markets, the Agency utilizes its physical assets and forward contracts to achieve rate predictability for our members. Transmission Forward Market Purchases MMPA owns transmission in its member The Agency purchases both electricity and communities of Anoka and Chaska. These natural gas in forward markets to reduce risk transmission assets support the Agency's and promote rate stability. These efforts mitigate objective to provide reliable power. In short-term energy price risks for MMPA. addition, they provide an economic return to MMPA. Looking ahead, the Agency continues Energy Price Cap Faribault Energy Park and Minnesota River to explore additional transmission investment Station provide a price cap on energy costs opportunities in its member communities. for the Agency. Shakopee Energy Park and future distributed generation resources will also provide price caps for MMPA. rc Resource Hedging Oak Glen WFarm Hometown BioEnergy hedge energyind Price riskand for MMPA. Black Oak :-:,/,' Getty and Buffalo Solar will provide additional /~- hedges for the Agency. 2015 MMPA Annual Report 15 f -� $**I*.'" ,. -. .fir. Ii'it'iri.,.°.; : i• ..-' 1 , ,:le ,, •... a t•,,,th,„ '''' JP" ..; N # v y <r yy , 1.4,..,.„.., 4,1/4'i. i' -,...-' ,,'_-- ,k.,.' ,,,,,,,,,,„ t,,. i i ,1111,/11111 F It .:1:).. 4011kb, \ .,, ild 4 '' * . ....,:i ,..'''."16:c.\..,o) ..,,,,...._. ' \liti1 a Supporting Our Member Communities V V A su000rtstho corn munIties wo sorve, Utility customer needs are changing and will continue to evolve. To meet these needs, MMPA offers programs and services designed to provide value to our members' customers. Energy Education 2,500 students participated in the Agency's lesson ranging from the concept of energy and 2015 Energy Education Program. This unique energy sources to how a power plant, such as educational experience provides students with FEP, generates electricity and provides power the opportunity to learn first-hand about power to local homes and businesses. generation and about their local utility. For schools not easily accessible to FEP, The Program aligns with Minnesota's 4th Grade the Agency offers an in-school education Science Standards and focuses on how energy assembly, developed and presented by MMPA is generated, transmitted, and used. Students in partnership with the Science Museum of learn these concepts through MMPA's Energy Minnesota. These educational events help bring Education Workbook, interactive tours, and interactive energy learning opportunities to more in-school assemblies. students throughout our member communities. A key component of the Energy Education Program is the Faribault Energy Park (FEP) Tour Event. While visiting the 300 MW capacity Energy Education natural gas facility, students are able to view the control room, steam turbine, on-site wind „ turbine, and solar array. During the month of ' '> f �► May, fourth graders attend the Tour Event and r" n ; , ' rotate through educational stations located throughout the facility and its wetlands park. < , Each station focuses on a specific energy 2015 MMPA Annual Report 17 a ♦ • a • • • ,, a a r s • • • s # • 11: d I:I 1- # ♦ # • # # • a •• • •• • a • • • # IIF • • ! • • # • AIF # # # !� # # • # • a# # # * 4 I I I I I I I iii A*.il k'11 1 1 # # # # # / # # • # ar ! M !� #E • # i a * • a a ♦ # 0 a a • • # • • # Ai # a a a a a a .a # # all. • # a • # .00 • #a i ! 4.01.* • 0.1. s • aa a a # # a ar' • # ,� • 0.0 s # # # • # # a 14 it # •• •• a 044 # a M aa a a a 0 • • • a • •• • a # a • a a • • a • • # a # a a • r a • a # a a # • # id # # # • • ! a • a a a / a # # l 4 • a a # a • a # a a • s • a • a # • a •• a # a Ili t. if i,-> .,, 4 Y x + 4 r y ' ? t t' jy ..py. '. / ., +1I* ♦ 04Ilr a r. ra4.. -NI,* joilio � ! u. r 11:4101t, 41'iA 11111411116 \Iwor.Ailibr,, ,,... ♦ 18R i IFn.9 z Supporting Our Member Communities fVVDA Iaunc -cs its Hometown Soarorant Drogram , The future of our energy supply includes both conventional and renewable resources. The Hometown Solar Grant Program offers our members a unique, local learning opportunity to educate and familiarize members' customers with solar power. Hometown Solar In 2015, the Agency launched its Hometown The Agency selected the member communities Solar Grant Program — an extension of MMPA's of Arlington, Brownton, Olivia, and Winthrop Energy Education Program. The purpose of as the first to receive grant awards. Solar the grant program is to provide an educational installations are expected to be installed at asset to our member communities and to help Sibley East Middle/High School, Brownton City teach local youth first-hand how sunlight is Offices, Bird Island-Olivia-Lake Lillian (BOLD) converted into electricity, as well as the unique High School, and Gibbon-Fairfax-Winthrop (GFW) benefits of solar power. High School. The Hometown Solar Grant Program provides MMPA completed its first Hometown Solar schools and other educational facilities (i.e. installation at its Faribault Energy Park (FEP) community centers, city offices, and libraries) in spring 2015. The FEP installation supports with the opportunity to apply for a 5 kW solar MMPA's Energy Education Program, including installation. educational tours at the Faribault facility. MMPA plans to award four grants each year for three years, providing all 12 MMPA member communities the opportunity to participate. "3y having a solar panel installec anc locatec right on school crouncs our stucents will nave access to an invaluasle ecucation tool H which to more intricately stucy the use of solar cower" — John Dotson, BOLD Schools Superintendent (Olivia) 2015 MMPA Annual Report 19 } gg d 4 tit y 4 '7°. `'y ,t N r "�f 4.*.0it!r ( :i. r 9 � ,M►� ' uY} < ' ., .t K ality 1 Supporting Our Member Communities V VPAs innovative products Gnc services orovce vaue to our mem ocrs' customers, Conservation MMPA offers a Conservation Improvement Customer education is crucial, both at the Program (CIP) to our member communities. The residential and commercial level. Our members program provides a wide range of residential work to implement thoughtful efforts to engage and commercial rebates that provide value their customers. To increase awareness of to our members' utility customers. Currently, LED lighting, three members distributed 7 MMPA communities participate in the conservation kits to residential customers. Agency's program. Another member distributed LED T8 lamps to MMPA's 2015 program achieved its 1.5% CIP commercial customers through a door-to-door spending requirement and had energy savings campaign. A team of utility staff and industry of 1.1% of average retail sales. The program volunteers visited local businesses, educating includes a variety of offerings to customers, customers on energy efficient products and from residential ENERGY STAR® appliance and available commercial rebates, and offered a lighting rebates to retrofit and new construe free pair of 4 foot LED T8 lamps to customers tion lighting, variable frequency drive, and agreeing to replace existing fluorescent lamps. custom rebates for commercial and industrial Renewable Products customers. 2015 program additions included a MMPA launched its renewable products residential ENERGY STAR humidifier rebate and program in 2015 in select member new commercial LED fixture rebates. communities. The program offers choice MMPA actively pursues custom projects because to residential customers, with options of they yield high kWh savings per dollar spent purchasing all or a portion of their electricity and provide incentives for large customers from renewable resources. The Agency to pursue energysavingtechnologies. In 2015, strives to support our members' needs 9� pp by MMPA worked directly with commercial and providing useful information, convenient industrial customers on custom rebates for services and innovative products from their innovative, energy efficient projects. As an electric providers. example, one member paid a $30,000 custom rebate to a large industrial customer for a project that saved over 700,000 kWh. 2015 MMPA Annual Report 21 Financial Highlights VVDAs - fla ficial strengtn su000rts the Agency's ability to orovice sty e anc CO '1r1 oCtltiVe ratCsr Rate Stabilization Fund Bond Retirement At the end of 2015, MMPA's rate stabilization The Agency used cash to retire$14 million of its fund balance totaled $30.5 million. The rate outstanding bonds in 2015.These bonds had stabilization fund allows MMPA to set stable a 5%coupon and were scheduled to mature in and predictable rates to members based on 2034 and 2035. Extinguishing this debt saves long-term energy price expectations. The goal approximately$700,000 per year in interest of the Agency's rate stabilization fund is to expense for the next 20 years, resulting in lower assist in providing competitive electric prices rates to members. to members. Debt Service Coverage Forward-Looking Energy The MMPA Board of Directors has a policy of Adjustment Clause adopting an annual budget that provides debt Energy prices can be volatile. MMPA's rates to service coverage of at least 1.20 times debt members includes a forward-looking energy service. This target is higher than the 1.15 times adjustment clause (EAC). At the beginning of debt service coverage requirement contained each month, the Agency sets rates to members in the Agency's bond indenture. The policy is based on projected costs for the month. Having intended to provide the Agency with flexibility a forward-looking EAC helps MMPA by matching to withstand unexpected events, while ensuring the timing of revenues and expenses. financial strength. The Agency exceeded its target in 2015 with a debt service coverage ratio of 1.27 times debt service. Year-Ending Rate Debt Service Coverage Ratio Stabilization Balance in thousands of dollars 1.30 — 35,000 — 30,000 — 1.25— 1.27 1.27 $29,300 $30,450 $30,450 124 25,000 — 1.20 — 20,000 — 1.15 — 15,000 — 1.10— 10,000 — a 5,000 — 0 — 1.00 - 2013 2014 2015 2013 2014 2015 22 2015 MMPA Annual Report 134 Financial Highlights Minnesota Municipal Power Agency Statements of Net Position December 31 December 31 Assets 2015 2014 Current assets: Cash and cash equivalents $ 21,329,356 39,090,296 Restricted cash and cash equivalents 5,363,890 4,299,485 Short-term investments 1,000,000 2,999,556 Accrued interest receivable 169,253 68,420 Power sales receivables 8,104,945 8,519,502 Other receivable 304,177 458,169 Fuel inventory 1,354,777 1,501,063 Plant inventory—spares 1,981,104 1,843,544 Prepaid expenses 1,005,845 472,878 Total current assets 40,613,347 59,252,913 Noncurrent assets: Capital assets: Equipment 1,192,857 962,290 Capital lease asset 29,080,531 29,080,531 Land 6,116,062 4,222,351 Electric plant 311,946,139 310,305,095 Rotable combustion turbine parts 9,844,205 9,844,205 Less accumulated depreciation (87,446,358) (75,612,012) Property and equipment, net 270,733,436 278,802,460 Construction in progress 6,741,563 471,219 Total capital assets, net 277,474,999 279,273,679 Investments 1,000,000 2,000,000 Restricted cash and cash equivalents 269,341 441,405 Restricted investments 19,814,495 22,206,743 Prepaid expenses 530,538 561,243 Future recoverable costs 37,242,644 32,605,392 Total noncurrent assets 336,332,017 337,088,462 Total assets 376,945,364 396,341,375 Deferred Outflows Deferred outflows of resources 2,359,009 1,788,969 Total assets and deferred outflows of resources $379,304,373 398,130,344 Liabilities Liabilities: Current liabilities: Accounts payable and accrued liabilities $ 7,389,957 11,985,661 Retainage payable — 338,934 Accrued interest payable 2,815,077 2,386,016 Long-term debt due within one year 8,713,333 8,813,334 Capital lease liability due within one year 865,561 816,798 Derivative instruments—futures 742,090 81,900 Total current liabilities 20,526,018 24,422,643 Long-term debt, net 242,763,042 266,657,458 Capital lease liability 19,910,496 20,776,057 Total noncurrent liabilities 262,673,538 287,433,515 Total liabilities 283,199,556 311,856,158 Deferred Inflows Deferred inflows of resources—rate stabilization 30,450,000 30,450,000 Deferred inflows of resources—other 7,545,438 7,179,591 Total liabilities and deferred inflows of resources 321,194,994 349,485,749 Net Position Net position: Net investment in capital assets 32,099,907 9,508,833 Restricted for debt service 5,363,890 6,298,873 Unrestricted 20,645,582 32,836,889 Total net position 58,109,379 48,644,595 Total liabilities and deferred inflows of resources and net position $379,304,373 398,130,344 2015 MMPA Annual Report 23 Financial Highlights Minnesota Municipal Power Agency Statements of Revenues, Expenses, and Changes in Net Position Year ended Year ended December 31 December 31 2015 2014 Operating revenues: Power sales to members $104,806,467 104,722,737 Power sales to nonmembers 577,120 156,123 Total operating revenues 105,383,587 104,878,860 Operating expenses: Power acquisition expense 42,466,770 44,839,029 Transmission 11,125,853 10,444,101 Other operating expenses 23,597,219 21,836,740 Depreciation 11,834,346 11,576,917 Total operating expenses 89,024,188 88,696,787 Operating income 16,359,399 16,182,073 Nonoperating revenues (expenses): Amortization of premium on long-term debt, net 782,146 324,833 Interest expense (13,403,391) (14,422,118) Investment income 1,402,545 980,363 Net(decrease) increase in fair value of investments (680,102) 1,999,388 Gain on extinguishment of debt 378,022 - Gain on sale of investments - 102,123 Total nonoperating revenues (expenses), net (11,520,780) (11,015,411) Change in net position before future recoverable costs 4,838,619 5,166,662 Future recoverable costs 4,626,165 2,267,338 Change in net position 9,464,784 7,434,000 Total net position, beginning of year 48,644,595 41,210,595 Total net position, end of year $ 58,109,379 48,644,595 Visit www.mmpa.org to see comolete aucitec financial statements anc learn more aoout VV DA. NfMPA ____-------...„_..: F NANCIALSaunnsn rallithe power of your hometown too....d-w-�,d.�....w+i...y..r..s..- 0.w..v 24 2015 MMPA Annual Report MMPA Minnesota Municipal Power Agency 220 South Sixth Street,Suite 1300 612.349.6868 Minneapolis,MN 55402 www.mmpa.org Minnesota Municipal Power Agency Statement of Net Position As of June 30,2016-Unaudited Assets Current assets: Cash and cash equivalents $ 7,708,294 Restricted cash and cash equivalents 9,350,076 Short-term investments 1,000,000 Accrued interest receivable 170,675 Power sales receivables 10,686,329 Other receivable — Fuel inventory 1,204,612 Plant inventory-spares 2,177,270 Prepaid expenses 1,143,719 Total current assets 33,440,975 Noncurrent assets: Capital assets: Equipment 1,192,857 Capital lease asset 29,080,531 Land 7,066,131 Electric plant 311,975,372 Rotable combustion turbine parts 9,844,205 Less accumulated depreciation (93,412,098) Property and equipment,net 265,746,998 Construction in progress 24,192,685 Total capital assets,net 289,939,683 Investments 1,000,000 Restricted cash and cash equivalents 414,086 Restricted investments 20,865,477 Prepaid expenses 515,186 Future recoverable costs 38,001,261 Total noncurrent assets 350,735,693 Total assets 384,176,668 Deferred Outflows Deferred outflows of resources 1,097,044 Total assets and deferred outflows of resources $ 385,273,712 Liabilities Liabilities: Current liabilities: Accounts payable and accrued liabilities $ 10,027,210 Retainage payable 383,037 Accrued interest payable 2,815,077 Long-term debt due within one year 8,713,333 Capital lease liability due within one year 891,023 Derivative instruments-futures (382,740) Total current liabilities 22,446,940 Long-term debt,net 242,379,731 Capital lease liability 19,458,526 Derivative instruments-futures (92,060) Total noncurrent liabilities 261,746,197 Total liabilities 284,193,137 Deferred Inflows Deferred inflows of resources-rate stabilization 33,071,000 Deferred inflows of resources-other 8,379,944 Total liabilities and deferred inflows of resources 325,644,081 Net Position Net position: Net investment in capital assets 46,600,259 Restricted for debt service 9,350,076 Unrestricted 3,679,296 Total net position 59,629,631 Total liabilities and deferred inflows of resources and net position $ 385,273,712 139 Minnesota Municipal Power Agency Statements of Revenues, Expenses and Changes in Net Position YTD June 30, 2016- Unaudited Operating revenues—power sales to members $ 51,520,479 Operating revenues—power sales to non-members 398,861 Total operating revenues 51,919,340 Operating expenses: Power acquisition expense 20,344,940 Transmission 9,073,629 Other operating expenses 11,386,862 Depreciation 5,965,739 Total operating expenses 46,771,170 Operating income(loss) 5,148,170 Nonoperating revenues(expenses): Amortization of premium on long-term debt,net 383,312 Interest expense (6,273,907) Investment income 452,698 Net change in the fair value of investments 1,051,362 Total nonoperating revenues(expenses),net (4,386,535) Change in net position before future recoverable costs 761,635 Future recoverable costs 758,617 Change in net position 1,520,252 Total net position,beginning of year 58,109,379 Total net position,June 30, 2016 $ 59,629,631 140 ,,i Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Theresa Slominski—Finance and Office Manager John Dietz—Chair Al Nadeau—Vice Chair Daryl Thompson—Trustee MEETING DATE: AGENDA ITEM NUMBER: September 13, 2016 6.1b SUBJECT: Staff Update DISCUSSION: We will be doing our last round of shutoffs in early October before the Cold Weather Rule comes into play for the time period of October 15t through April 15th. The shutoffs have been successful this year in that we are getting our pool of customers needing shutoffs in a tighter group. As noted previously,this year we were turning off some apartments in the summer months and usually we are able to include apartments because there are too many other individual residences that are on the list. On August 22nd I attended our City, County, Other Government Agency (CCOGA) meeting for our medical insurance pool and received our renewal increase that was 19%. This is a high renewal rate; however, I feel it worthy to note that a significant benefit of being in the CCOGA pool is that it spreads our risk and mitigates high renewals. Because of our claims this past year, we should have had a 46% increase in our premiums; but because we are in the pool we are limited to a 19% increase. We have had some ups and downs with the renewal rates over the years, ranging from-9.5%to 22%, with our average increase at 7.37% The Wage and Benefits Committee has a meeting September 12th to review options and will be bringing more information to the commission after that meeting. I will be attending the NISC Membership Information Conference (MIC) and will be out of the office the afternoon of Tuesday, September 6th through Friday, September 9th. I hope to find out more information about NISC's commitment to Fund Accounting and future software enhancements that will benefit us. I will provide a verbal update at the commission meeting. IIEPOiEOEO BY Page 1 of 1 NATURE Reliable Public Power Provider PONIRED To SERVE 141 .,/ Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Mark Fuchs—Electric Superintendent John Dietz—Chair Al Nadeau—Vice Chair Daryl Thompson—Trustee MEETING DATE: AGENDA ITEM NUMBER: September 13,2016 6.1c SUBJECT: Staff Update DISCUSSION: • Had eight new services. • Continue working on collecting data with the GPS for our ArcView maps as time permits. • Continue rebuilding River Ranch in Otsego. • Continue working on changing out some of the rusty junction boxes or removing ones that are no longer necessary. During the process of going through these areas,we also install fuse pads for better sectionalizing when a fault occurs. • Continue installing a new feeder from the east side of HWY 169 by GRE to the east side of HWY 10 across from Nature's Edge Business Center. This feeder will give us a feeder loop under HWY 10 to be used when we acquire area two from Connexus. • Had to lower some three phase underground primary at the Sherburne County Government Center for a parking lot they're putting in. • Had to replace a guy wire pole that was struck by a vehicle on County Road 12 and Cleveland Street. • Lightning hit two blades on a pole which caused an outage in Connexus acquisition Area 1A and 1B on August 18th at 6:15 am. It took approximately an hour to get the load switched around and the power restored. During the process of moving load around, we discovered damaged PMH-9 pad mount switchgear that also needed to be replaced. • Lightning also hit a cutout and dead-end insulator in Dayton on September 5th which caused an outage. P0VEHE0 8Y Page 1 of 1 NATURE lieReliable Public' Power Provider POWERED To S ERV E 142 >LL"*. Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Mike O'Neill—Technical Services Superintendent John Dietz—Chair Al Nadeau—Vice-Chair Daryl Thompson- Trustee MEETING DATE: AGENDA ITEM NUMBER: September 13th, 2016 6.1d SUBJECT: Staff Update DISCUSSION: • In August, The Locating department had a total of 521 locate tickets; consisting of 8 emergency tickets, 16 cancellations, 15 meetings, 426 normal tickets and 26 updated tickets. • In August,the security systems sales and installation department was shut down. WH Security is currently handling all of the service and sales calls for ERMU. Attached is the security system update and analysis for the month of July. • Electric Technicians continue with the meter reading, power bill, substation checks, hanging red-tags, meter read-outs, dealing with meter and off-peak issues, as well as delivering and installing new meters to commercial customers. They continue to change out the three phase meters with meters that will be read by radio ERT. Preparing for meter change outs in Area 2 as well as auditing the meters already acquired from Areas 1 a and lb. • Metering department is working with Itron to acquire and install replacement software for MVRS;the new software will give us greater capabilities in meter reading and data sharing. • The power plant staff did the monthly engine run on August 30th. All engines with the exception of engine 4 ran well. We are currently working on engine 4 to determine why we couldn't get that one online. • Mapping department is very close to being finished with getting entire service territory map updated to reflect entire system in Esri mapping software. They continue to enter GPS points and attribute points for our systems assets. • Jeff Murray attended the Upper Midwest Metering Association Summer Meeting August 3- 5 in Duluth, MN. His education report is attached. ATTACHMENTS: • Security Systems Weekly Update • Security System Analysis • Jeff Murry Education Report POWERED BY El Page 1 of 1 NATURE Reliable Public" Power Provider POWERED To SERVE 143 4 Elk River — Municipal Utilities 13069 Orono Parkway P.O. Box 430 Elk River, MN 55330-0430 Elk River Municipal Utilities Security System Weekly Update Month of July Number of Contacts 77 Number of systems quoted 9 Number of sales made 5 Number of Installs completed 6 Number of service calls 30 Personal Visits 9 Revenue Jul-15 $ 19,953 Expense Jul-15 $ 14,174 Margin* Jul-15 $ 5,780 YTD Revenue Jul-15 $ 148,062 YTD Expense Jul-15 $ 98,330 YTD Margin* Jul-15 $ 49,733 *Margin calculations exclude depreciation,payroll taxes,benefits coverage and office support 144 O O O O OL L C6 CD OOOCO OOR 00 (O V O O O ›- O cON - co V 6) co co co y 43:31 N N N - -C N N mI- H CO NNO N- 00 L 6) COM ((0 CO M IC) C) N co N V O M N- C) r M N r U C,b Cb a- )- O CV LO r0 a) Nt 6) Ci N N 0 `- 1.0 (n N- - CO CO r O 0) O N ✓ CO r C`') ) CO 1- CO N CO N- CA N CO ' CO CO O CO 1,- > Nj CA O 6) CO > co- 00 6- ) O N N N 6) CO 0 Nt 6) Nt Z (NI Z 0) N r N 00 O O 0) O N M 0000 O c- N- CO O O M ti N- 4-, (n 00 O O) co- 6) Tt r co- co- 6 U N O r CO r CO U co d- ' Q (NJ r Q CO CO 6) r N- N CO O 6) O N OCO6) In COOO N- CO vM CO M O M R 6) co- 00 00 6- ) a r co r N Q. 'tet C) Tr a) a) U) U) y N (fl 10 O CO CO y CLSD 1.0 OO N O M C co co N 6) co co C O (-0 C)6 rr 17 - CO- CO- Cr) 05 00 CA 7 r CO r N 7 6) V' Q r r Q r N- O O (I) 1- (I) CO CO O Nr O) O N N- 0) V' N CO N- (I) U) (n CO N- N O CO Tr - co r co O Tt r 6) o co N N- 00 >+(N N N CO M 6) (n >.6) co- co- (n 6) co N C r r Cr) Tr 7 7 T O CO (4.1 (.() (N CO N N- O (n N N Co Nr N. CO V N. CO CO O N (C) (!) 1,- CO CO r N CO CO O d I-- r CO r 0) Cr) C (t) C3).- 6(Cr'- N N (O o C O M co- rt M CO- o a � C r r C) ' r C N N r CO00 V a f6 r r n ' r 0 'C Co a) Q Lo Co CO') co a) CVO d' 0 0r LO r CO M O Co 0 U (n Co 6) O (n N 6) ` z.-:,1 Co 00 Co Co O N >+00 N O 6) if; M >>M N CO- Cr;C 0 j, C6 r 0 r M r (C N O r COcr 0 co 0 Co Co C cc (t) co r N- M r Co cn N (C) (O CO r N- o) ▪ CA CO (n Nt CO @ r CO r O (C7 r CO Ca T 6) (n r CO CO moi' 0)) - r r MCO N `) L ti (t) O N N M N- 0 L O O M O CO > a r co N 1N- ' r 0 fl'N O (I) CO 0 Q co Q m 0) - Co ti O O ti a) O CO n CO Cr) (I) CO - O co co (O 6) co co d- c V' (.0 O Co 0 c O co Co (I) N N 0) a) , (NI co co co co co co Cl) co O ti O N O O (l O CO"' co-O a Cy r CO N (C) ' N g N CO r CO N Co T CO N (n 6) Co CO O N I-- h 00 r Cr) CO CO N 00 O CO N (C) 1- (I) CO 6) Nt CO N- E N 7 N- 00 Co N Nt (C) (n p 6) �' h 1� OO •• ( p U d co 6) CO N 00 r >, d CO- r N C 0 >, ) in LL r Co cu o. LL N r N r N Q Co 0) 'St cl' V' O O C c c O O Co CO N- N- CO c C N r r o) O (N N Q 0 N 00 00 CO CO CO 0 - C C O O CO 00 r r C X @ C C 6) 6) (C) (I) CO '� C t4 r CO (O W v (4 O O O O 0 =O L ' CO CO r EA- N L -) N N N U CO '0oa CO 0 U F- a) -0 5 c w r3 c ami ° CC coCI) -a La 2 a L C i w L ID c C 0 C > > N a) w Nom- C > CI) CU E O 4) 7 Cn Cl a) 0 a) CO i6 7 co * O i0 0 C 0 + 0 0) U C U CO NO) C TO J C N � CL 7 C fY c W C 2 C _ - C C c W C CC N M > 0 cu �0 > > 7 m m C6 0) Z Cr) CC >- W }2 >- D C Q „ Cl) c >- W > 2 >- Q (n m r O N CU :4' m c a1 - ' c to to Lll a) O c c-I > C.J to In ON CC CC U O N T i O N M O N j1 1 N 0 c N 2) m CO 1il- RS RS T T O 0 Q N c Q .- X C O W o O +' N T • CD SI I' L N N- a1 O c = O > (, 1 N I. il 'L I O U O . 4) N n <0 0 0 N N 0 0 N i O O O O O O O O O O O O O O O O 64 O O O O O O O O O O O O O O O O O LU O to O to O to to co co N N 64 69 69- 64 69 69 64 64 ' ELK RIVER MUNICIPAL UTILITIES EDUCATION / SEMINAR REPORT DATE EMPLOYEE NAME TITLE OF EDUCATION/SEMINAR (.,) :M vvl Sv ORGANIZATION SPONSORING EDUCATION SEMINAR tiere.," a`4'/ /94c- cE-1 DATES ATTENDED -3 /� -- —S-' LOCATION ,1-i WHY DID EMPLOYEE CHOOSE TO ATTEND --7-c 5 L. `c �L s , 1 51 v e5 / c cel\ \_c.` -� pct\ � �c����� y r ,•�.2 WHAT INFORMATION WAS LEARNED BY ATTENDING \- Sct. S P P Lty ted- s LA L—)C IO tf C u,-�r� �� i c � _ l�:L ^y `� I r,L C:,�G✓ M ! u-4J IL-S .ice t 1-1"`7 (-41— Ccs tit-J:. - e•\_0 - ;u1 z s -�c ctw ,tip c s J -�V��bi� 5 Iwo eb ,La c,Lc / & Ce,--JN--e 1 WAS INFORMATION CONVEYED TO SUPERVISOR AND CO-WORKERS AND TO WHO 717/,r SIC�IVATURE 147 ,,/ Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Eric Volk- Water Superintendent John Dietz—Chair Al Nadeau—Vice Chair Daryl Thompson—Trustee MEETING DATE: AGENDA ITEM NUMBER: September 13, 2016 6.1e SUBJECT: Staff Update DISCUSSION: • Delivered seven new water meters. • Sealed the water meter, and took curb stop ties from ten water services. • Went on seven service calls. • Completed 25 BACTI/Total Chlorine Residual Samples o All confirmed negative for Coliform Bacteria. • Completed 20 routine fluoride samples o All samples met MDH standards. • Completed one validation fluoride sample mandated by the MDH. • The water operators have completed the work on all of the hydrants that were scheduled for maintenance this year. Upon that completion,the 1,200+hydrants in our system have had preventative maintenance performed on them within the past four years. The private hydrants have had maintenance completed three times. • The WTP#7 Expansion is on schedule. Some of the piping has been removed from inside the building. All of the footings and beams have been poured. The filter is scheduled to be set in place by the 9th of September. • The 2016 leak detection survey has been completed. It was discovered that ten fire hydrants were leaking which required repairs. We also discovered two water main breaks that have never surfaced; one break is located on the corner of County Road 30 and Macon Street and the other one is located in West Oaks. As the West Oaks break is on a private main it will be repaired by the association. ATTACHMENTS: • July Pumping by Well • July 2016 Accumulated Precipitation Graph • July 2016 Daily Temperature Graph POWERED 111BY 0 Page 1 of 1 NATURE Reliable Public Power Provider POWERED To S E F,E 148 i a c Q o �.o E r-1 N a 0 O as GJ o 4--, c MaJ rl N L Oco r.1 M � � cu c c N y E E O c a r I � Oc To— r-I l7 lD o rl N .o ct = N t113 v-i ( v I 0 ei pN v upQ n 00 *t O a.) > C a-. •, 13 r----i a r., *• t',. iiiCNJ a 4it en D... w vi 4.1z Z to2 it 2 c pci re) J �` < 0 W I 1/1 C 0 I on 4_I T . iPIMCZN [Y5 r Li b CU 1 0 lad ZI 442 1 rdLi mrd 144 LO CNI 1 II 0 Co 4O N 0 r- (saipui) UOEIP !dEEa ld !..t1 , , u Temperature (c) @ ,... co N II ..L. 1. k- ri) 0 3 L) DI ,1 Crl Ce CM 0.1 M ____ stt i i -\ ad r:-.7" ....,.,..„. 0 a CNJ E 0 Cd CN1 4,.. rd ifl, ,L, m E a 1 < E qi 4.J I ..----- .74 „..,,,.., rci 4.0 ,1 imilimmumi --, 0 z Lr) 0 pillMIIIIIIIIIIIMIIIIIIIIIIIIIIII ,---- Lri ,- a) ;11.11111.1111111111111111111 --4(.. , a --- en = < 4-# ,,.... ct .,... arsil (1 kci im. 1 f- eiJ .. \ 0 a I r:;.: E , \., er, g oz. .. .. . .i. < L.. ..- '''`•,..,, 1 ... rd % . EL) ta 2 1 E ) I LI c i 1 1 , .' iv 10 MI a) Z5 III i N t e 41U 0 0 0 0 in 0 Q < ig' clei c. en co N. w kri ti. .-- I ! (J.) adrupJadmal Elk River Municipal Utilitie S 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: September 13, 2016 6.1f SUBJECT: Staff Update DISCUSSION: • Staff met with Dave Berg Consulting, LLC on the cost of service study to answer some general questions on cost and sales projections. The study is progressing and the first analysis should be completed in September. Staff has allowed for some flexibility in the schedule to allow for the inclusion of updated capital and wholesale power costs. • Waste Management has submitted all the expenses through July for the landfill gas plant. This includes monthly maintenance over contracted amounts; the rebuild of engine#4 and re-rings on engines#1, #2, and#3. ERMU staff has submitted data to the League of Minnesota Cities (LMC) as part of the insurance claim. The LMC is waiting to hear back from the re-insurance company on the claim. The operating revenue is projected to be positive for 2016 prior to the insurance claim and including the waiver of landfill gas expense. • We had another residential customer install a larger 240 volt charger. ERMU staff worked with the customer, and the customer's electrician,to install the unit properly so they could participate in the electric vehicle charging rate program which continues to grow. Staff learned a great deal on this installation because it was the largest one to date. • Working with Connexus Energy on the second service territory transfer. The transfer will occur on September 20th, at 9:00 a.m. The customers have been contacted and informed of the transfer and outage. Staff has been working with primarily commercial customers on the rate changes that will occur. Some commercial customers are on special rates or on incorrect rate schedules with Connexus Energy. There has been discussion with some customers on the transition to the appropriate rate schedule and the possibility of a$1 per kW demand adjustment for 2017. The demand adjustment, if approved in the budget, would be funded from reserves in 2017. POWERED BY Page 1 of 1 NATURE Reliable Publicp Power Provider P 0NE 0.E 0 To Sea E 152