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4.4. ERMUSR 10-11-2016 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: October 11, 2016 4.4 SUBJECT: Electric Service Territory Update—Connexus Energy BACKGROUND: On March 20, 2015,ERMU and Connexus Energy executed a historic electric service territory transfer agreement which includes provisions to transfer approximately 12 square miles of service territory with 2,000 customers over a five year period. On September 20, 2016 at 9:00 a.m. ERMU began the transfer of the second area identified in this agreement. The transfer included 199 residential and commercial accounts that contained 220 meters. DISCUSSION: The physical transfer was completed in approximately 10 minutes. The transfer went as planned and customers only experienced a brief outage while switches were opened on the Connexus system and then closed in from the ERMU side. Communication and professionalism between Connexus field services and ERMU field services allowed for and safe and efficient transfer. The customers represented in the acquisition area are very diverse. Over 60% of the customers in Area 2 are commercial and represent a diverse cross section of commercial business types including but not limited to; agricultural,manufacturing, retail, healthcare,and automotive. Area 2 had many unique metering and account settings that presented some challenges when converting them to the ERMU customer information software and rate programs. Staff did an excellent job in determining the best ways to set up the new accounts and the associated rates and or programs that would best fit the customer's needs and provide value to ERMU as a whole. 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