2.7. ERMUSR 01-09-2018 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Troy Adams, P.E.—General Manager
MEETING DATE: AGENDA ITEM NUMBER:
January 9, 2018 2.7
SUBJECT:
Notice to Connexus Energy of Electric Service Territory Area 5 & 6 Transfer Date
ACTION REQUESTED:
Receive the Notice to Connexus Energy of Electric Service Territory Area 5 & 6 Transfer Date
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:
On December 18, 2017, formal notice was given to Connexus documenting intent for a transfer
of Areas 5 & 6 in late 2018. Although the agreement only requires five months written notice of
intent to transfer, this was given early to allow for planning and scheduling of the reintegration
work needed to facilitate the transfer. It is preferable to coordinate a September 2018 transfer
date; however,the actual date will be chose through a collaborative process with Connexus
energy.
Attached is an overview map indicating the location of the transfer areas identified in the
agreement. Areas 1A, 1B, 2, 3, and 4 have already been transferred. Per the provisions of the
agreement, ERMU has until September 2020 to complete the transfers under the negotiated
terms.
As indicated on the attached overview map, Areas 5 & 6 are located on the west side of Elk
River. In these two areas there are approximately 350 customers which are primarily residential.
The reintegration,plant, and pre-work costs were all budget line items in the 2017 and 2018.
ATTACHMENTS:
• Notice to Connexus Energy of Electric Service Territory Area 5 & 6 Transfer Date
• 2015 Connexus Energy Electric Service Territory Transfer Agreement Overview Map
Page 1 of 1
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Elk River
Municipal Utilities Phone: 763.441.2020
13069 Orono Parkway•P.O.Box 430 Fax: 763.441.8099
Elk River,MN 55330-0430 www.elkriverutilities.com
December 18, 2017
Connexus Energy
Attn: Greg Ridderbusch
President & Chief Executive Officer
14601 Ramsey Blvd NW
Ramsey, MN 55303
Re: Notice of Electric Service Territory Areas 5 &6 Transfer Date
Dear Mr. Ridderbusch:
Per the provisions of our Electric Service Territory Agreement dated March 20,
2015, at least five months advance written notice is required for service territory
transfer. The intent behind the notice provision included in the agreement was to
provide sufficient time for reintegration and for engineering evaluation of plant.
This letter is to serve as formal notice of Elk River Municipal Utilities' intent for a
transfer of Areas 5 & 6 in late 2018. It is preferable to coordinate a September and/or
October transfer, however, the actual date(s) will be chosen through a collaborative
process with Connexus Energy.
Best regards,
Troy Adams, P.E.
General Manager
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