2.5 ERMUSR 02-14-2017 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:
February 14, 2017 2.5
SUBJECT:
Elk River Municipal Utilities/Connexus Energy—Joint Request for Minnesota Public Utilities
Commission Modification of the Parties' Electric Service Territory Boundary
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.
DISCUSSION:
The second service territory area including approximately 200 customers was transferred to
ERMU under these terms in the fall of 2016. This transfer results in a service territory boundary
change which needs to be filed with the Minnesota Public Utilities Commission (MPUC).
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. This filing was then made electronically.
The docket was considered and approved by the MPUC on February 2, 2017.
ATTACHMENTS:
• Minnesota Public Utilities Commission Notice of Approval of the Elk River Municipal
Utilities/Connexus Energy Joint Request for Modification of the Parties' Electric
Service Territory Boundary—February 7, 2017.
rillIEREI IT
Page 1 of 1 NATURE
Reliable Public
Power Provider POWERED T O SERVE
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BEFORE THE MINNESOTA PUBLIC UTILITIES COMMISSION
Nancy Lange Chair
Dan Lipschultz Commissioner
Matthew Schuerger Commissioner
Katie J. Sieben Commissioner
John A. Tuma Commissioner
Kathleen M. Brennan SERVICE DATE: February 7, 2017
McGrann Shea Carnival Straughn&Lamb,
Chartered DOCKET NO. E234,E101/SA-16-922
800 Nicollet Mall, Suite 2600
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 was considered by the Commission on February 2, 2017, and the
following disposition made:
Approved the requested service territory transfer from Connexus Energy to Elk
River Municipal Utilities.
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
s Y 41
Daniel P. Wolf
4
x , Executive Secretary
LaIlIlfatt
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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85 7TH PLACE EAST.SUITE 500
MINNESOTA DEPARTMENT OF SAINT PAUL.MINNESOTA 55101-2198
C ^ O 1500 FAX
(�fj 651.539.1500 FAX 651.539.1547
AN EQUAL OPPORTUNITY EMPLOYER
November 30, 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-16-922
Dear Mr. Wolf:
Attached are the comments of the Minnesota Department of Commerce, Division of Energy
Resources(Department or DOC) in the following matter:
The Joint Request of Elk River Municipal Utilities (the Municipal) and Connexus Energy
(the Cooperative)to Modify Electric Service Territory Boundaries.
The petition was filed on November 14, 2016 by:
Kathleen M. 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 transfer from Connexus Energy to Elk River Municipal
Utilities, and is available to answer any questions the Commission may have.
Sincerely,
/s/ DALE V. LUSTI
Financial Analyst
DVL/It
Attachment
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MINNESOTA DEPARTMENT OF
COMMERCE
I
BEFORE THE MINNESOTA PUBLIC UTILITIES COMMISSION
COMMENTS OF THE
MINNESOTA DEPARTMENT OF COMMERCE
DIVISION OF ENERGY RESOURCES
DOCKET No. E234, E101/SA-16-922
I. BACKGROUND
Elk River Municipal Utilities (the Municipal) is an electric municipal utility organized and
existing under the laws of the State of Minnesota. Connexus Energy(the Cooperative) is an
electric distribution cooperative organized and existing under the laws of the State of
Minnesota.
II. SUMMARY OF PROPOSAL
On November 14, 2016, the Municipal and the Cooperative, collectively the Parties,jointly
filed a petition under Minn. Stat. 2166.39, subd.3, asking the Minnesota Public Utilities
Commission (Commission)to modify the Parties' service territory boundaries. Approval of
the Parties' request would transfer the Affected Area from the Cooperative to the Municipal.
III. DEPARTMENT ANALYSIS
A. TRANSFER OF THE AFFECTED AREA FROM COOPERATIVE TO MUNICIPAL
Exhibit A to the Petition is a map that depicts the boundary of the Affected Area. According
to the Petition, the Affected Area involves approximately 1,644 acres with 60 residential
customers, 140 commercial customers and zero industrial customers.
Although the Parties do not have a separate legal description prepared of the Affected Area,
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Docket No. E234, E101/SA-16-922
Analyst assigned: Dale V. Lusti
Page 2
they will provide whatever information MNGeo requests to facilitate the adjustment in the
official maps. According to the Parties, they do have a Shape or CAD file of the map
depicted in Exhibit A.
Per conversation with the Parties' representative, it should be noted the proposed transfer is
a permanent transfer of service territory.
B. CUSTOMER NOTICE
Exhibit B to the Petition is an eight-page set of informational documents relating to the
transfer of electric service from the Cooperative to the Municipal, that was provided to all
customers in the Affected Area.
Exhibit C to the Petition is a Proposed Notice to be provided to all customers in the Affected
Area. The notice identifies the pending proceeding before the Commission regarding the
process of formally updating the service area maps to reflect Elk River Municipal Utilities as
the service provider to the Affected Area.
C. TRANSFER DATE
As stated in the Petition, the Parties transferred the services on September 20, 2016.
D. COMPENSATION
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 Elk River Municipal Utilities' service area is consistent with Minn. Stat. 2166.39.
IV. RECOMMENDATION
The Department recommends that the Commission approve the requested service territory
transfer from Connexus Energy to Elk River Municipal Utilities.
/It
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