6.1a ERMUSR 06-12-2018 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Troy Adams, P.E.—General Manager
MEETING DATE: AGENDA ITEM NUMBER:
June 12, 2018 6.1a
SUBJECT:
Staff Update
ACTION REQUESTED:
None
DISCUSSION:
• The Board of Directors of the Minnesota Municipal Power Agency (MMPA)met on May
22, 2018 at the offices of Shakopee Public Utilities.Neither Commissioner Al Nadeau
nor I were able to attend this meeting.
The board received an update on the Agency's energy education program which is
currently underway at Faribault Energy Park. MMPA is scheduled to deliver a
presentation about its energy education program at next month's National Conference of
the American Public Power Association.
Participation in MMPA's residential Clean Energy Choice program increased over April,
with six different MMPA members having new customer signups during the month.
Customer penetration of MMPA's Clean Energy Choice program for residential
customers increased to 2.8%.
Attached are the 1Q2108 MMPA unaudited financials.
• The Minnesota Municipal Utilities Association (MMUA)held their annual Planning
Session Board Meeting on June 6 and 7 at their offices in Plymouth, MN.
• On Friday June 1, MMUA held their final Government Relations Committee conference
call. I am currently the chair of this committee.
• The MMUA Summer Conference is scheduled for August 20-22 and will be held at
Arrowwood Resort in Alexandria, MN. The 2018 budget included attendance of this
conference for all five commissioners. Please check your schedules and let me know by
the end of June if you are able to attend. For more details,please visit the following link:
https://www.mmua.org/event/summer-2018.
• ERMU, Great River Energy(GRE), and MMPA held another conference call regarding
power provider migration on Monday May 7. On that call it was discussed that one of the
remaining issues to work through relates to our emergency distribution tie points with
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Connexus energy. On Wednesday May 30, GRE hosted a meeting at the Maple Grove
campus to work through this issue. The meeting was attended by Connexus, MMPA,
ERMU, and GRE key staff. After two years of discussion on this topic, this in-person
meeting set the environment to work towards resolution. I am happy to report that a
mutually beneficial multi-party outcome was achieved and this issue was resolved. This
group's next conference call is scheduled for Monday June 11.
• I attended the GRE annual meeting on the morning of June 6.
• A small workgroup of the joint ERMU/city Information Security Committee continues to
work weekly with our cyber security consultant,FRSecure. The group continues to
conduct weekly webinar meetings to develop physical and cyber security policy. The
work done during the webinars will develop into draft policy that the full committee will
review. Identical, or substantially similar,policy will then be considered for formal
adoption/implementation by the city council and ERMU commission.
• As a reminder and per the Governance Policy G.3e General Manager Performance
Planning and Evaluation and consistent with Governance Policy G.3d Monitoring
Performance of the General Manager,the commission conducts a formal evolution of the
General Manager during the second quarter of each fiscal year. This has been scheduled
to be held during the July Commission Meeting currently scheduled for July 10.
• I will be attending the American Public Power Association (APPA) 2018 National
Conference from Saturday June 16 through Wednesday June 20. I will be presenting with
John Miner for a 4-four session on governance policy. John Miner is the consultant who
ERMU hired to help with our recent governance policy re-development initiative.
Additionally, I will be presenting with APPA staff for a session on initiative
measurement and"benchmarking for excellence."
ATTACHMENTS:
• Minnesota Municipal Power Agency— rt Quarter 2018 Unaudited Financials
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Minnesota Municipal Power Agency
Statement of Net Position
As of March 31,2018-Unaudited
Assets
Current assets:
Cash and cash equivalents $ 36,781,658
Restricted cash and cash equivalents 11,093,907
Accrued interest receivable 250,211
Power sales and other receivables 8,711,353
Fuel inventory 965,934
Plant inventory-spares 2,817,248
Prepaid expenses 1,232,283
Total current assets 61,852,594
Noncurrent assets:
Capital assets:
Electric generation assets 426,697,990
Land 7,066,719
Less accumulated depreciation (116,907,876)
Property and equipment,net 316,856,833
Construction in progress 2,001,966
Total capital assets,net 318,858,799
Restricted cash,cash equivalents,and investments 20,023,214
Prepaid expenses 937,727
Future recoverable costs 46,219,122
Total noncurrent assets 386,038,862
Total assets 447,891,456
Deferred Outflows
Deferred outflows of resources 2,004,222
Total assets and deferred outflows of resources $ 449,895,678
Liabilities
Liabilities:
Current liabilities:
Accounts payable and accrued liabilities $ 8,098,156
Accrued interest payable 6,132,242
Long-term debt due within one year 9,923,333
Capital lease liability due within one year 986,187
Derivative instruments-futures 409,970
Total current liabilities 25,549,888
Long-term debt,net 274,513,603
Capital lease liability 17,769,333
Derivative instruments-futures 180,170
Total noncurrent liabilities 292,463,106
Total liabilities 318,012,994
Deferred Inflows
Deferred inflows of resources-rate stabilization 33,071,000
Deferred inflows of resources-other 15,944,903
Total liabilities and deferred inflows of resources 367,028,897
Net Position
Net position:
Net investment in capital assets 42,678,645
Restricted for debt service 11,093,907
Unrestricted 29,094,229
Total net position 82,866,781
Total liabilities and deferred inflows of resources and net position $ 449,895,678
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Minnesota Municipal Power Agency
Statements of Revenues, Expenses and Changes in Net Position
YTD March 31, 2018 -Unaudited
Operating revenues—power sales to members $ 26,687,660
Operating revenues—power sales to non-members 309,498
Total operating revenues 26,997,158
Operating expenses:
Power acquisition expense 11,298,600
Transmission 3,978,137
Other operating expenses 5,826,311
Depreciation 3,603,046
Total operating expenses24,706,094
Operating income(loss) 2,291,064
Nonoperating revenues(expenses):
Amortization of premium on long-term debt,net 283,146
Interest expense (3,363,511)
Investment income 325,825
Loss on bond investment redemption (41,745)
Net change in the fair value of investments (194,712)
Total nonoperating revenues(expenses),net (2,990,997)
Change in net position before future recoverable costs (699,933)
Future recoverable costs 1,178,085
Change in net position 478,152
Total net position,beginning of year 82,388,629
Total net position,March 31,2018 $ 82,866,781
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