6.1a ERMUSR 12-11-2018 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Troy Adams,P.E.—General Manager
MEETING DATE: AGENDA ITEM NUMBER:
December 11, 2018 6.1a
SUBJECT:
Staff Update
ACTION REQUESTED:
None
DISCUSSION:
• The Board of Directors of the Minnesota Municipal Power Agency(MMPA)met on
November 27, 2018, at the offices of Shakopee Public Utilities. I attended, but
Commissioner Al Nadeau was not able to attend.
The Board was updated on the status of repairs to Faribault Energy Park from a tornado
that hit the plant on September 20 as well as the successful completion of a major
maintenance outage.
The Board discussed the status of several renewable projects that the Agency is pursuing.
The Board discussed changes to NERC reliability standards affecting several of the larger
MMPA member communities.
The unaudited financials for 3Q2018 are attached.
• On October 25, I participated in an American Public Power Association (APPA)Reliable
Public Power Provider(RP3) application final grading session as the Reliability
Representative on their 18 member panel. In addition to final grading, during this
meeting the panel performed their annual review of the RP3 designation requirements
and application process.
• The Minnesota Municipal Utilities Association(MMUA) Government Relations
Committee has begun meeting again in preparation for the upcoming session. I am
currently the chair of the committee. We held a conference call on November 16. On that
call we reviewed the results of the election. We also discussed the results of the
November 15 Conservation Improvement Program(CIP)to Comprehensive Energy
Efficiency Program (CEEP)meeting which was held at the office of the Minnesota Rural
Electric Association(MREA) in Maple Grove, MN.
The MREA/MMUA CIP to CEEP meeting included representation from the Center for
Energy and the Environment(CEE) for the purpose of aligning goals and discussing
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jointly developing legislation language. I will be participating in a small group follow up
discussion with a few other consumer owned utility (COU)managers and CEE on
December 19 at the MREA office in Maple Grove, MN.
• The board of the Midwest Municipal Transmission Group (MMTG) held a special
meeting on November 29 to approve financial policies. The MMTG membership and
MMTG board will have their annual meetings on December 19 in Ankeny, IA. I will be
participating in the annual meetings via conference call from the MMUA office in
Plymouth, MN. I'll be participating from the MMUA office so I can make it on time to
the MREA/MMUA CIP to CEEP meeting in Maple Grove,MN, immediately following
the MMTG meeting.
ATTACHMENTS:
• Minnesota Municipal Power Association 3Q2018 Unaudited Financials
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Minnesota Municipal Power Agency
Statement of Net Position
As of September 30,2018-Unaudited
Assets
Current assets:
Cash and cash equivalents $ 59,673,529
Restricted cash and cash equivalents 16,055,575
Accrued interest receivable 260,676
Power sales and other receivables 10,598,384
Fuel inventory 1,087,054
Plant inventory-spares 2,936,278
Prepaid expenses 952,682
Total current assets 91,564,178
Noncurrent assets:
Capital assets:
Electric generation assets 426,837,917
Land 7,066,719
Less accumulated depreciation (124,108,913)
Property and equipment,net 309,795,723
Construction in progress 1,604,761
Total capital assets,net 311,400,484
Restricted cash,cash equivalents,and investments 19,670,206
Prepaid expenses 556,634
Future recoverable costs 48,526,377
Total noncurrent assets 380,153,701
Total assets 471,717,879
Deferred Outflows
Deferred outflows of resources 1,689,407
Total assets and deferred outflows of resources $ 473,407,286
Liabilities
Liabilities:
Current liabilities:
Accounts payable and accrued liabilities $ 9,340,756
Accrued interest payable 6,132,242
Long-term debt due within one year 9,923,333
Capital lease liability due within one year 1,015,198
Derivative instruments-futures 299,840
Total current liabilities 26,711,369
Long-term debt,net 273,947,312
Capital lease liability 17,254,376
Derivative instruments-futures 20,560
Total noncurrent liabilities 291,222,248
Total liabilities 317,933,617
Deferred Inflows
Deferred inflows of resources-rate stabilization 33,071,000
Deferred inflows of resources-other 31,165,673
Total liabilities and deferred inflows of resources 382,170,290
Net Position
Net position:
Net investment in capital assets 35,887,509
Restricted for debt service 16,055,575
Unrestricted 39,293,912
Total net position 91,236,996
Total liabilities and deferred inflows of resources and net position $ 473,407,286
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Minnesota Municipal Power Agency
Statements of Revenues,Expenses and Changes in Net Position
YTD September 30, 2018 -Unaudited
Operating revenues—power sales to members $ 92,728,219
Operating revenues—power sales to non-members 1,105,543
Total operating revenues 93,833,762
Operating expenses:
Power acquisition expense 34,191,649
Transmission 14,138,873
Other operating expenses 20,007,386
Depreciation 10,804,083
Total operating expenses 79,141,991
Operating income(loss) 14,691,771
Nonoperating revenues(expenses):
Amortization of premium on long-term debt,net 849,437
Interest expense (10,080,069)
Investment income 1,160,221
Loss on disposition of property (660,452)
Loss on bond investment redemption (41,745)
Net change in the fair value of investments (556,136)
Total nonoperating revenues(expenses),net (9,328,744)
Change in net position before future recoverable costs 5,363,027
Future recoverable costs 3,485,340
Change in net position 8,848,367
Total net position,beginning of year 82,388,629
Total net position, September 30,2018 $ 91,236,996
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