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4.5. 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 4.5 SUBJECT: Electric Service Territory Update— Wright Hennepin Electric Cooperative Association BACKGROUND: Defined electric service territories were established in 1974 for Minnesota. Since 1974 the defined boundaries have been corrected,modified, or changed in some way with mutual agreement from all electric utilities. ERMU and Wright-Hennepin Electric Cooperative Association(WH)had identified a service territory area disagreement in 2008. DISCUSSION: The first area of concern is a residential housing development called Mississippi Cove. This development is located in Otsego and is positioned between County Road 39 and the Mississippi River. Approximately 10 years ago WH installed distribution facilities to serve this development that is in ERMU service territory. The issue was acknowledged by WH and both parties verbally agreed to identify a territory swap rather than remove the installed facilities.The economic recession delayed any swap because nothing was being platted along our service territory boundary until the recent plat approved for the Villas of Otsego. The Wild Flowers Meadows development is also located in Otsego and is located east of Highway 101 and north of 72nd Street NE. The City of Otsego approved a final plat on September 12th,2016 that has single family patio style homes approved for an area that is located along the existing service territory boundary for WH and ERMU. ERMU and WH have verbally agreed to allow WH to serve the existing seven residential lots in Mississippi Cove,that are currently in ERMU defined service territory,where WH currently has distribution facilities installed. In exchange for those seven homes,ERMU will provide electric service to eleven patio home sites that are currently platted to be built in the Wild Flower Meadows development called the Villas in Otsego. WH and ERMU determined the average energy consumption of the single family homes in Mississippi Cove and did a comparison to the patio home style home energy use to determine an equivalent annual energy consumption factor.Each single family home is equivalent to 1.671 patio style homes. If you multiply the equivalent average single home factor by the seven homes or sites we determined that the number of equivalent patio style units is 11.69.Based on the plat approved by the City of Otsego the. PBWERED BY Page 1 of 2 NATURE • Reliable Public Power Provider Pct To Si 132 territory outlined in the attached documents would allow ERMU to serve 11 of these homes that are currently in the WH service territory. There are two maps attached for your reference.The fist map is from the Beacon GIS system for Wright County. The service territory line will be adjusted to include the seven homes or sites on 96 Street NE (12780, 12794, 12808, 12822, 12825, and 12817).The second document is the approved plat map for the Villas in Otsego. ERMU would serve the eleven patio homes(Block 2 lots 1-7, and Block 3 lots 1-4). ACTIONS REQUESTED: ERMU staff is requesting approval of the territory swap for the identified parcels in Mississippi Cove and Wild Flower Meadows(Villas in Otsego). Once construction has started on the Villas in Otsego ERMU will work with WH and legal staff to make the appropriate filings with the MPUC to change the defined service territory boundary for each development to reflect the outlined changes. ATTCHEMENTS: • Map—Mississippi Cove Proposed Territory Line • Map—Wild Flower Meadows(Villas in Otsego)Proposed Territory Line POWERED BY Page 2 of 2 NATURE Reliable Public Power Provider To S e a v e. 133 • TN1 OBeacon Wright County, MN oNI Overview ..„.....„."(si-2 .,- Zi'' t- ,..,-''''i .r_ fit.. r r' u ma i 's_.-•—' i'igrrq;4 � - �1) .� �, •,_ � Legend opor � ,. i Roads f in i7y � *127 � ' CSAHCL r � ma m 12868 — CTYCL i3,'� �._.:. tel'ft_ — MUNICL . — PRIVATECL 4 1 0`I , 4 Highways 12(-,c),,) x Interstate 6'i -- State Hwy ar US Hwy i` 4,c,,,, City/Township Limits 126:'�� t- 12;s5 � �" ❑ ... 12808 "k ; l C Quarter Quarters 12608 12;621 12 1•ie02 Lots Ai 126'1, 1260' r `� s. ..em".. 5.�: z' Ili 12825 .Z F�u '' Q ' 12 , 12589 Date created:10/6/2016 Last Data Uploaded:10/6/2016 2:43:38 AM 416.14 Developed by /" / ;^ /rr/'']'7/ ��A Schneil7 The Schneider Corporationder i-X s / y .■mI.s = pr©pos�� /crr,17or L� � 134 II !: S' • b 5 !.till =i I 1 g g g �q 11.- S 3 r. " T. 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