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6.1a ERMUSR 09-12-2017 Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Troy Adams, P.E.—General Manager MEETING DATE: AGENDA ITEM NUMBER: September 12, 2017 6.1a SUBJECT: Staff Update ACTION REQUESTED: None DISCUSSION: • The Board of Directors of the Minnesota Municipal Power Agency(MMPA)met on August 29, 2017 at the offices of Shakopee Public Utilities in Shakopee, Minnesota. It was reported that customer penetration of MMPA's Clean Energy Choice program for residential customers increased to 2.2%,with a range of market penetration by member of 5.6%to 0.7%. It was reported that the Clean Energy Choice for Business program rollout is about to begin. The Board approved a pilot program extending the Agency's Energy Education program to high school students in Shakopee at the Shakopee Energy Park(SEP) facility. It was reported that MMPA won a"System Innovation Award" from the Minnesota Municipal Utilities Association at its 2017 summer meeting in August. The award recognized MMPA's leadership and innovation in developing its customer engagement& education and generation portfolio. MMPA's SEP has been selected by the editors of POWER magazine to receive a 2017 Top Plan Award. SEP is featured in this month's edition of Power magazine. The article is attached. • The City of Otsego council has approved the terms the transfer of street lighting as approved by the Commission in July. We will work with legal counsel to draft the agreements. • The on-site information gathering meetings for our cyber security assessment have been scheduled for October 19-20. An Information Security Committee meeting will be held shortly following to review the assessment report. ATTACHMENTS: • POWER magazine—Growing Community Seeks Attractive Power Plant— Sept 2017 Page 1 of 1 85 Eiftii,,,, f E Gg .n bo-. ,' ( At x. eeks ..„ , ..r GrowingCo „ ,5 _ ,, , , , ;,,,,t,,,,,,,,,....., . ktit _ 'owe ,,,. tt� t 1� 3 l Nestled near the center of Shakopee, Minnesota, is the Minnesota Municipal Power Agency's (MMPA's) Shakopee Energy Park. The plant, a 46-MW natural gas-fueled reciprocating engine facility, powers the city of 40,000 and contributes to the overall power supply of 11 other MMPA member communities. Abby L. Harvey To address growing power needs in a that we were up and running because they facility, and three natural gas facilities, in- Minneapolis suburb, Minnesota Mu- didn't hear a thing," John Crooks, Shako- eluding the Shakopee plant.A solar installa- nicipal Power Agency(MMPA)had to pee Public Utilities manager,said.The facil- tion is currently under development as well. get creative. The utility not only wanted to ity uses silencers on each engine and it was The development of the plant is the re- add clean,efficient generation to its portfo- constructed using sound absorbing building suit of a successful team effort.The plant is Ho,but also,due to the plant's intended loca- supplies to prevent noise from reaching the owned by MMPA.The agency is composed tion embedded in the community,the utility surrounding community. of 12 Minnesota member municipal utili- had to make several other considerations.The This is just one of the reasons the Sha- ties including the cities of Anoka, Arling- plant needed to be attractive and run quietly. kopee Energy Park is one of POWER's top ton,Brownton,Buffalo,Chaska,East Grand "Shakopee Energy Park [SEP] is part of natural gas plants for 2017. Forks, Elk River, Le Sueur, North St. Paul, MMPA's commitment to clean, efficient Olivia, Shakopee, and Winthrop. SEP sup- power generation," said Derick Dahlen, At a Glance ports the overall power supply of the agency. president and CEO of MMPA's management The Shakopee Energy Park uses five 9.3-MW MMPA is managed by Avant Energy,a Min- partner Avant Energy. "We wanted to make Wartsila fast-start, fuel-efficient reciprocat- neapolis-based energy management corn- sure SEP fit aesthetically into the community ing engines to produce energy for the MMPA pany with years of experience in the electric and wouldn't cause noise issues for people member communities. Using this fast-start power industry. who live nearby. We spent a considerable technology, the plant can start up in just a Shakopee Public Utilities (SPU) designed amount of time designing the building to en- few minutes, making the plant an important and constructed the infrastructure for the sure neighbors wouldn't hear the gensets,and complement to intermittent renewables. plant's interconnection to SPU's substation and we've been very pleased with the results." MMPA's energy portfolio currently con- also provided support during commissioning. MMPA did such a good job designing the sists of 17% renewable energy generation, Wartsila provided the engines, liquefied plant to operate in the center of the commu- with an intention to increase to 25%renew- natural gas (LNG) tank, and aided in corn- nity that "[w]hen speaking with residents, ables by 2025. The group's portfolio cur- missioning activities. Greystone Construe- I've been told that they did not even know rently includes two wind farms, a biomass tion provided building construction services, 32 www.powennag.com PQWNRI September2017 TOP PLANTS • 1. Open to the public.Through the construction and operation of the Shakopee Energy r' x Park,the Minnesota Municipal Power Agency has tried to maintain a mutually beneficial rela- POWER POINTS 1F ' tionship with the community.Courtesy:Avant Energy Winning Attributes ' �s""' t Fast-start start reciprocating engine 9 , ' 1 i • , 1 t .. f :1 technology and liquefied natural gas backup system offers i -'" t , ` ��`� flexibility and complements .* ,. .d variable renewable resources. 111 �Ili . . to 1 `i'';,i�` k - ' Located near a residential center, �` ` ' + � f resulting in additional, unique, ' l .*' t 7 ,.;ei design requirements. `cif I.0.4 � tt i411° u r Completed on time and under „ budget in just 10 months. and Azco Inc. and Parsons Electric served Beyond its unique design requirements, plant's contribution to the local community. as mechanical and electrical contractors for the plant is also unique in that it uses LNG Shakopee has been attracting large corn- power island equipment and the balance of as its backup fuel.The project team decided panics,such as Amazon and Shutterfly,in re- plant equipment. to incorporate LNG in lieu of a firm gas con- cent years,increasing the demand for reliable The plant broke ground in April 2016 and tract. In short,the plant's primary supply of electricity access.The city is also home to an was placed into commercial operation on natural gas may be curtailed during times of amusement park and a horseracing track, February 14,2017,just 10 months later.This high regional demand,such as very cold win- which is located directly to the north of the extremely tight construction schedule re- ter days,which are all too common in Minne- plant. By connecting the energy park direc- quired careful coordination,especially when sota.If this occurs,the facility can operate on tory to the local distribution system,MMPA delivering major equipment. LNG by vaporizing the LNG to its gaseous was able to increase electric reliability for "We worked very closely with the city and state. Through this process, the engine per- these businesses. local authorities to carefully coordinate ma- formance is the same as when operated on "This facility is a great support to our lo- jor equipment deliveries. Our deliveries of the primary fuel supply. cal distribution system and helps ensure re- major equipment occurred during the middle The LNG is stored in a 99,000-gallon tank. liability on our system, which is especially of the night,so there would be minimal lin- The LNG housed in the tank provides enough important to many of the businesses in our pact to the surrounding community," said fuel for the plant to operate for around 22 community,"Crooks said. Dave Urke, construction site supervisor at hours at full capacity. "This unique fuel ap- The plant is also a part of MMPA's En- Avant Energy. proach allows the Agency more flexibility in ergy Education Program,which has provided Urke noted, in particular, the delivery of its operations strategy,"according to MMPA. learning opportunities for nearly 13,000 el- the LNG tank.The tank had to be transported The plant also utilizes efficient heat re- ementary school students through in-school 22 miles from the factory.Transportation and covery technology.Waste heat captured from assemblies and tours since 2010. An effort setting of the tank took 10 hours. "Crews the facility's generators supports vaporizing was made to use local contractors and busi- commenced work at midnight and tank set- the LNG,heating incoming natural gas,and nesses, such as Greystone Construction, in ting was completed by 10 a.m. the next heating basic building systems. Recovered the construction of the plant,helping create morning.Equally impressive,the hoisting on heat can also be supplied to local businesses. local jobs. site by a 550-ton crane and a 450-ton crane The plant was opened to the public for a to its final installed location took 14 minutes An Upstanding Citizen grand opening on August 1,2017(Figure 1). from trailer to concrete piers,"he said. MMPA and Avant are particularly proud of the During the dedication ceremony,Dahlen said, "Shakopee Energy Park is good for every "The facility is a great addition to our MMPA community because it provides power supply flexibility and protects our members growing community. Shakopee Energy Park against price volatility in the marketplace." "The facility is a great to our provides our residents and businesses with growing community,' Shakopee additionMayor Bill [a] long-term, efficient, competitive, and Mars said. "Shakopee Energy Park pro- vides our residents and businesses with [a] reliable electrical supply ... our communi- long-term, efficient, competitive, and reli- ty's future economic development and sus- able electrical supply, which is delivered by J p Shakopee Public Utilities. In turn,our com- tainability goals are supported." munity's future economic development and 1 sustainability goals are supported."■ —Shakopee Mayor Bill Mars —Abby L.Harvey isa POWER reporter. 33 September 2017 POWER w°`r wcp°`M°^^°g'e.m „i 87 ,W...�_..,..., ._.. ,-tea ,.. �',