ERMU Misc. 10-11-2005 f
I
Ji
Elk River
Municipal Utilities
13069 Orono Parkway phone: 763.441.2020
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Elk River, MN 55330 Fax:763 441 8099
IOctober 3, 2005
I To: Elk River Municipal Utilities Commission
Jerry Takle
John Dietz
I
Jim Tralle
From: Bryan Adams
Subject: Miscellaneous Issues
IEnclosed is theP acket for the Tuesday, October 1 111), 2005 commission meeting at
4:00pm.
It All things considered, we faired verywell during the September 21,1 wind storm. We lost
p
4 feeders (1500-2000 customers) due to trees on wires or flooding. The outages started
Iaround 6:30 pm and all power was restored by approximately 1:30 am. The following
day, we sent a line crew to the City of Anoka to help in their repairs. On October 41h,
2005 due to the heavy rains we again lost the feeder serving Otsego from flooding a 3
Iphase junction box. Power was restored in about 90 minutes.
I Due to scheduling various projects, I have not had time to draft a policy addressing
antennas on water towers. This will hopefully be on the November agenda.
I Enclosed are the following articles for your review:
I). Letter from Beaudry Oil Co. explaining the use of biodiesel in the fuel
they will be providing us for our vehicles.
I 2). September 16`' issue of Kiplinger letter addressing energy costs.
3). September 23'd issue of Kiplinger letter addressing workers and jobs.
4). Letter from Connexus's FERC attorney Heller Ehrman informing us
I that Connexus is no longer considered a public utility within the jurisdiction
of FERC.
5). Copy of Bill Sniffer from Connexus explaining GRE's generation
I
resource mix. This question was asked at a recent ERMUC meeting.
6). Sherburne Co is seeking an award for their participation in the LEG
project. Attached is a letter dated 9-26-05 explaining their participation.
Beaudry BeaudryhElk River, MN 55330
(800) 637-4117
LOi1 Company P R O P A N E:1 (763) 441-2383
FAX (763) 441-1688
Minnesota Biodiesel Mandate
' On September 29, 2005, Minnesota's Biodiesel mandate becomes effective in
accordance with Minnesota Statute 2.39.77. This statute states that all diesel fuel
delivered to retailers/ commercial accounts for sale in the state of Minnesota
must contain at least 2 percent biodiesel by volume. Proper identification
showing the amount of biodiesel in the fuel must be provided for each shipment.
This statute does not apply to off-road taconite and copper mining equipment,
' railroad locomotives and motors located at nuclear power plants. Biodiesel is not
required to be blended in fuel oil for heating purposes or used in turbine engine.
Biodiesel, or B2, is a petroleum free alternative fuel made from renewable
proteins such as soybean oils. B2 is a clean-burning diesel fuel that can assist in
' the growth of our economy as well as reduce our dependence on foreign fuel
supplies In addition, B2 improves fuel lubricity. While B2 is an effective
alternative, please remember that it is critical that pure biodiesel, when blended
' with diesel fuel, meet the ASTM D6751 standard for fuel quality in order to
provide trouble-free operation of internal combustion vehicles. No special
storage requirements are needed for the new fuel, but like all diesel fuels, we
encourage storing this fuel in a clean, dry vessel away from high temperatures.
in compliance with Statute 239.77, Beaudry Oil will begin supplying B2 biodiesel
' to all of our regular diesel customers beginning September 29, 2005.
For further information on biodiesel and other alternative fuels, please call or visit
' the following sites:
• The Biodiesel Helpline: 1-800-929-3437
' • MN Dept. of Commerce: 1-651-215-5821
• MN Dept. of Agriculture: 1-651-297-2223
• Ron Beaudry, Fuei Manager Beaudry Oil
1-763-633-1456 or 1-763-441-2383
' • Beaudry Oil Company, Inc.
^ICilyJ311 cern
• MN Dept. of Agriculture online:
' v,'ww rncla state me us!a(lis/biodie_sellundate iltm
• MN State Legislature online:
• 1,1�.,;"�`J �;.,".i i�l)Ila739,77
The American Lung Association online.
v ,:�'✓ clean !rchnice {.arc/outdoor
Thank you for taking the time to read this important update. We look forward to
supplying you with all of your diesel and biodiesel needs.
Fuel Oils Diesel Fuel • Motor Oils Propane to Wholesale Gasoline • Convenience Stores
I Th
e KiplingerLetterlie
FORECASTS FOR MANAGEMENT DECISIONMAKING
1729 H St. NW, Washington, DC 20006-3938 • KiplingerForecasts corn • Vol. 82, No. 37
I
IDear Client: Washington, Sept. 16, 2005
Those high energy bills CAN be reduced. CURRENT FORECASTS
Conservation is the surest way to go. . .
Early
IIwellworth a thorough evaluation of energy use. Source Current
Early
i Summer
2006
Federal and state energy departments, utilities
and equipment vendors offer free energy audits. Crudeoil $64 $62 $65
(per barrel)
II
ENERGY
Pricey fuel has reduced payback periods Naturalgas
to six months on lower-cost options. . . (perMMBtu $1125 $12.50 $9.50
tuning up air-conditioning/heating systems, at wellhead)
II sealing ducts, buying programmable thermostats
and installing energy-miser lighting fixtures. Regular
An average 20% savings is within reach gasoline 5290 S240 $z 60
(per gallon)
IIby adopting all such heating/lighting measures.
Bigger investments will also pay off, Diesel fuel $2.87 $2.45 $2.65
(per gallon)
I especially for manufacturers. Payback periods
on replacement of energy-guzzling equipment
now average about two years vs. three in 2003. Heatingoil $2.60 $290 $2.60
On natural-gas-fired items. . .boilers, dryers, (per gallon)
IP
heating systems. . .the payback is just one year.
Sensors for compressed-air devices Electricity
(per kWh) 8.9C 9.8C 9.4C
can cut fuel use by 10% by matching pressure
Ito needs. Mercury Marine, a boat engine maker
in Wis. , slashed about $500,000 from its $7-million-a-year electric bill.
High-efficiency motors with sensor technology use 10% less fuel.
I
Smart meters allow managers to continuously monitor power costs
and reduce juice to specific mach nery or systems to help save money.
Utilities must offer these meters to all customers at reasonable prices.
I
Installing chiller systems can cut cooling expenses for factories
and commercial buildings. Water chilled by low nighttime temperatures
is pumped into cooling systems during the day to cut the AC load.
IAlso consider interruptible contracts for electricity
or natural gas. They offer big discounts if users agree to let providers
reduce supply when necessary. Users should have backup power systems.
IISeek bulk-buying discounts by banding with trade associations
or using energy brokers that aggregate orders for a variety of fuels.
Weigh the feasibility of using local alternative-fuel options. . .
I
tapping landfills or wastewater plants for methane gas or buying waste
from paper mills or furniture makers to burn. The Department of Energy
offers free maps showing available local alternative-energy options.
IOperating trucks? Try battery packs or small separate engines
to power AC and heating systems while idling. Installing rounded covers
Irmr
over boxy trailers and low-rolling-resistance tires also saves fuel.
The Kip/rger Lerer(ISSN 1528 7130)Is published weekly for$84/one year,$154/two years$222/three years Subscription inquiries 800 544 0755 or sub services@krphnger corn
by The Kiplinger Washington Editors 1729 H SI NW,Washington,DC 20006 3938 Editonal information Tel,202 887 6462,Fax,202 778-8976,
Penodtcals postage paid at Washington,DC
POSTMASTER Send address changes to The Krphnger Letter PO Bo.3295 Harlan IA 5,593 E-mail letters@krplrnger corn,or Web site,KrptingerForecasts corn
1
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ENERGY New liquefied natural gas import terminals will get a green light.
SUPPLIES Why? Worries about energy in general ,
and natural gas in particular will trump concerns MORE OVERSEAS ENERGY411/1
about safety and potential environmental impact.
Long-delayed plants planned for Hackberry s 30 U.S.Natural ••'
II
and Port Pelican La. , and for Freeport, Texas, of Gas Consumption •••
f Feet/Day ••
will start construction in a year or two. 25 ••'
They'll all come on line between 2010 and 2012, 1 �••• Imports
/�
as will plants coming in Baja California, Mexico, II
and in Canada. Both are meant to serve the U.S. 20
Another Mexican plant will make its debut sooner, ......U, Natural ••••..
in 2007, shipping gas to California via pipeline. Gas Production
II
15
Imports will nab 40% of the market 2000 2005 2010 2015 2020 2025
Energy Dopt Kip Inge
by 2025. About half will be LNG. . .only 4.5% now.
Coal-fired power plants will get a break from Uncle Sam: I
New pollution rules that set per-hour maximums rather than a yearly cap
on emissions. As a result, older plants that modernize would be able IIto operate for more hours. Thus, they'd be able to increase annual output
without hitting emissions caps that would require antipollution devices.
Environmental advocates will cry foul, claiming the proposed regs
violate the Clean Air Act. They're sure to mount a court challenge. IIThat will probably delay the effective date until 2007.
AIRLINE Air carriers aren't likely to get what they're asking for. . . IIINDUSTRY a one-year suspension of the 4.3c-per-gallon tax on jet fuel.
It would save them a cool $600 million, but that's only a small slice
of the $10 billion in total losses the industry will rack up this year.
Congress is reluctant to waive the fuel tax for the airlines,
fearing that it would open the door for other industries seeking relief. 41111
Moreover, before Hurricane Katrina and the latest spike in fuel prices,
most lawmakers were inclined to steer clear of any industry bailout. IIThey preferred to let the market sort out sticky questions of survival.
It's only a matter of time before Independence Air stumbles,
following US Airways, United, Delta and Northwest into bankruptcy court.
I
Recent declarations put carriers with nearly half of industry capacity
under court protection. They'll emerge as leaner, meaner competitors.
Meanwhile, airlines are jettisoning any extra weight they can,
II
trying to squeeze more from their fuel dollars. Magazines, blankets
and pillows are being tossed from cabins. Ditto, extra catering supplies
and metal cutlery. . .even first class will have to make do with plastic. I At least one carrier is trying to tighten luggage weight limits as well.
Slightly slower cruising speeds will add a few minutes to flights.
Need more evidence that Southwest Airlines is a winner? I
The company locked in fuel prices long before this year's spike.
About 85% of its fuel for this year was covered by hedges at $26 a barrel,
less than half what the 2005 average price is likely to turn out to be. IIIt has hedges in place for 25% to 65% of annual fuel use through 2009,
with guaranteed prices ranging from $31 a barrel to $35 a barrel.
SCHOOLS Another victim of fuel price hikes: Local school districts. IIII
Additional costs to operate school buses will bust their budgets,
11 not to mention the impact of increased school heating bills this winter.
* Remember,your subscription includes The Kiplinger Letter online
1 I
1 Th
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e � i n er Letterlip
FORECASTS FOR MANAGEMENT DECISIONMAKING
1729 H St NW, Washington, DC 20006-3938 • KiplingerForecasts.com •Vol. 82, No. 38
II
II
Dear Client: Washington, Sept. 23, 2005
' Skilled workers will be harder to find CURRENT FORECASTS
in 2006. . .and even more so in following years. GDP
•; Up 3 3/0 this year,2.7%In'06
WORKERS The real problem lies in education. It.
AND JOBS Some college or advanced training Interest rates NEW FORECAST
will be needed for about 85% of new jobs. '' Primerosing by mid'06 to 7%by end
IIwill
only 60% of American students get that far. '05,7 S/o
Businesses will need 2 million more scientists Inflation
and engineers by 2012 and 2.4 million workers I Gaining3 5%1n'O5,30i°In'06
IIwith key manufacturing and production skills. Employment
Current trends indicate demand won't be met. In'05,1'05,1Economy will add 2 3 8 million more Innllon mlobs
'06
I
Crunches already exist in health care. Trade deficit
Rlsing to 5633 billion in '05
Nurses and pharmacists are notably scarce.
And in construction, demand is soaring i Housing NEW FORECAST
Sales rising to 8 3 million In'05,
II
for plumbers, bricklayers and technicians slight easing to 78 million In'06
handling air-conditioning and heating systems. slightik sales
Gulf Coast rebuilding will make matters worse. Growth steady at 4%In'06
Also for machinists. Tool & die makers. Auto sales
IP Drafting specialists. Welders. Electricians. IL Falling to 11e6s8 million in'06
Businesses are hungry for bookkeepers, Complete economic outlook at
legal researchers and even data processors, KiplingerForecasts.com/outlooks
I
amid a lack of basic math and writing skills.
Sporadic gaps are becoming chronic. Spot shortages. . .widespread.
II In Missouri, Harley-Davidson can't find laser welder operators.
In Idaho, a meat packer needs integrated systems managers. Trucking firms
around the country are short of drivers, despite offering generous pay.
There'll be fewer foreign workers available to fill the voids.
II
Tighter visa rules, which Congress won't change, and new opportunities
in other countries are deterring qualified foreigners from working here.
And baby-boomer retirements will worsen the skills shortage.
II Firms can ease the blow by trying to keep older workers on the job longer,
tailoring benefits to their needs and letting them phase in retirement.
These workers can also mentor younger colleagues and help with training.
II
Don't expect the government to help much. Job-training programs
are haphazard and ineffective. A Commerce Dept. summit on the problem
in Dec. will bring a new plan but no fresh money to fund real changes.
Firms have to act on their own, adding apprenticeships and training.
II
The skills shortage will take a toll on U.S. competitiveness.
Fewer engineers and scientists means fewer innovations
la
of the kind that led to the Internet, bar codes and Doppler radar.
Firms will send work overseas permanently. Just as steel jobs
haven't come back to the U.S. , engineering jobs may not return, either.
Irwr
And fierce competition for employees is going to push up wages.
The K,olmge,Lever(ISSN 1528 71301 is published weekly for$H4rone year,$15altwo years$2229hree years Subscription inquiries 800 544 0155 or sub services@kiplinger com
by The Keplinger Washington Editors,1729 H SI NW,Washington,DC 20006 3938
Editorial information Tel 202-887 6462, Fax,202 778 8976,
I
Penodicals postage paid at Washington,DC
POSTMASTER Send address changes to The Krphnger Lefler,PO Box 3295 Harlan IA 51593 E mail letters@krplmger com,or Web sae,KplmgerForecasts corn
HellerEhrman LLP
September 13, 2005 Susan Taylor
Susan.Taylor@hellerehrman corn
Direct+1.202.912 2507
' Direct Fax+1.202 912.2507
Main+1.202 912 2000
Fax+1.202.912.2020
' 99953.0201
Mr. Bryan Adams
' General Manager
Elk River Municipal Utilities
322 King Avenue
Elk River, MN 55330
Re: Connexus Energy: Notice to FERC that
Connexus Energy is no longer a Public Utility
Dear Mr. Adams:
' We have been asked by Connexus Energy to forward to you a copy of a letter that was filed
with the Federal Energy Regulatory Commission on September 9, 2005. We have now received a
confirmed copy of the letter, as filed, and a copy of it is enclosed for your records.
This letter informs the FERC that Connexus Energy is no longer considered a Public Utility
' within the meaning of the Federal Power Act due to the enactment of the Energy Policy Act 2005,
which changes the definition of"Public Utility". As a consequence, all current filings before the
FERC are withdrawn or become moot. The letter to FERC confirms this.
Please do not hesitate to contact us if you have any questions about the enclosed letter or its
effect.
' Sincerely,
Susan Taylor
' Enclosure
ST/leo
laDC 246387 v19/13/05 5 06 PM(99953 0201)
Heller Ehrman LLP 1717 Rhode Island Avenue,NW, Washington,D C. 20036-3001 www.hellerehrman corn
Anchorage Beijing Hong Kong Los Angeles Madison,WI New York San Diego San Francisco Seattle
Silicon Valley Singapore Washington,D.C.
I
HellerEhrmanLLP
I. r,11-ler fI -,,, .
,..,:_-_ 1:_ ;f.?,.(
I 1005 SEP -q p 3: 10
September 8, 2005 Susan Taylor
susan.taylor@hellerehrman.com
1
REGa-C `ifiL L'. tti a}' Direct+1.202.912.2507
L ror;Y CONMSSrnra
Direct Fax+1.202.912.2020
Main+1.202.912.2000
I
I Ms. Magalie R. Salas
Secretary
Federal Energy Regulatory Commission
I 888 First Street, NE
Washington, DC 20426
I
Re: Connexus Energy
IDocket Nos. ER05-369-000; EL04-125-000 and 0A96-149-000
upDear Secretary Salas:
The purpose of this letter is to advise the Federal Energy Regulatory Commission
I (Commission) that Connexus Energy no longer is a public utility within the meaning of Section
201(f) of the Federal Power Act (FPA) (16 U.S.C. § 824(f)), as amended by the Energy Policy
IAct of 2005 and signed into law on August 8, 2005.
Section 201(f), as amended, exempts electric cooperatives that sell less than 4,000,000
I megawatt hours (MWh) of electricity per year. During 2004, Connexus Energy sold a total
amount of 1,975,000 MWh.
I Accordingly, Rate Schedule FERC No. 1, relating to the All Requirements Contract
between Connexus Energy and Elk River Municipal Utilities, which was accepted as a
jurisdictional rate schedule, no longer is subject to the jurisdiction of the Commission and is
Ihereby withdrawn to the extent deemed necessary.
In addition, the filing in Docket Number EL04-125-000, and the waiver granted by the
ICommission in favor of Anoka Electric Cooperative (the former name for Connexus Energy) in
Docket Number 0A96-149-000 (76 FERC ¶ 61,250), both of which have now become moot,
I
also are hereby withdrawn.
ipA copy of this letter has been sent to Elk River Municipal Utilities, the sole customer
under the Rate Schedule. Please do not hesitate to contact me, (202) 912-2507, or Mr. Mike
Heller Ehrman LLP 1717 Rhode Island Avenue,NW, Washington,D.C. 20036-3001 www.hellerehrman corn
IAnchorage Beijing Hong Kong Los Angeles Madison,WI New York San Diego San Francisco Seattle
Silicon Valley Singapore Washington,D.C.
Ms.Magahe R. Salas
HellerEh rmanu>> September 8,2005
Page 2
Bash, Vice President, Business Resources and Chief Financial Officer of Connexus Energy,
(612) 323-2658, if you have any questions, or if you would like further information.
Sincerely,
c:24,csz .)Q4 ,--(-((cY\
' Susan Taylor
Counsel for Connexus Energy
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IENERGY
GREATR '
Generation Resource Mix
IWith an effective mix of resources,they supply power to some of the fastest growing
1 communities in the region. Future plans to diversify their generation portfolio include
more wind energy and other technologies as they become available.
For more information on GRE,visit them online at
Coal 80, www-greatnverenergy-corn.
I
\'1 „.44.
CONNEXUS®
Purchased Power 9% ENERGY
Your Community Energy Partner
I Renewable 6%
Gas 2% 763.323 2600
14601 Ramsey Blvd.
Ramsey, MN 55303
www connexusenergy corn
I
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Electric Service1 Costs
IMore Cost of Service Study Facts
As an electric distribution cooperative,Connexus Energy purchases power from Great River Energy and delivers it to your home.
IThe price you pay for electricity includes costs for power generation,transmission,
El
and distribution. On average,about 70%of the rates you pay are incurred to
, ,
purchase power and 30%is to deliver it to you.
I
caeecxcda �'1,�1.�
c n E u c v irisCONNEXUS
• j ' `'`,, ENERGYCosts by Customer Segment
I
s Purchased Power Residential Commercial
I =
Distribution Generation 52% 72%
Transmission Transmission 11% 14%
I
Delivered Power
Generation
Distribution 37% 14%
More information about the 2005 Cost of Service Study is available online at www.connexusenergy.com
Illa 0905-1
IA Elk River ----
111
Municipal Utilities
13069 Orono Parkway phone: 763.441.2020
Elk River, MN 55330 Fax 763 441 8099
September 26, 2005
Mr. David Lucas
Sherburne County Government Center
13880 I-Iighway 10
Elk River, MN 55330
' Subject: LFG Facility
' Dear David,
110 You inquired about the success of our Landfill Gas to Electric Generation facility located
at the Elk River landfill in Elk River, MN. Attached is our brochure reflecting the details
of this facility.
This facility has been in operation since November 2002, and has consistently exceeded it
operating goal The facility operates at above name plate rating and its availability factor
' is in the 98% range whit is very high for a facility of this type. The operating costs are
also meeting if not slightly exceeding our expatiations. The plant was built with a
capacity of 4 engine-generators, with 3 engine-generators initially installed. The 4`h unit
is now being added.
In 2003, this facility supplied about 15% of Elk Rivers energy needs. In 2004 this
' facility was awarded the ACEC oMi
fMinnesota Honor Award. An environmental learning
center is incorporated in this facility. This learning center is used to host groups from
U of M graduate students, to cub and boy scouts, and other community groups. We
' discuss landfill, recycling, and energy issues. This is a great forum to educate the public
about these issues.
' The real success story is how this facility came to be. Elk River is designated Energy city
with a "...geographical focal point to demonstrate energy technologies, services and
products, which must be environmentally friendly, affordable, and repeatable elsewhere."
' The Elk River landfill is a large landfill that produces a large quantity of methane gas
from the natural decomposition of garbage. This gas was previously be flared or burned
off. With Energy Cities focus in mind, why not use the otherwise wasted fuel and
i
produce electricity Sherburne County became the driving force behind utilizing this
el
resource. Due to Sherburne County initiative, a unique partnership was formed to build
this landfill gas to electric generation facility. With Elk River Municipal Utilities as the '
owner, Waste Management the operator. and Sherburne Co. the financing source, this
facility was built and is successfully operating An electric utility, county government
and private enterprise working together to utilize an otherwise wasted resource.
Best r gards.
,72/3/
,
•
B 'an Adams, P.E
General Manager
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