5.5. ERMUSR 02-12-2019 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Tom Sagstetter—Conservation & Key Accounts Manager
MEETING DATE: AGENDA ITEM NUMBER:
February 12, 2019 5.5
SUBJECT:
Landfill Gas Plant Update
ACTION REQUESTED:
None
BACKGROUND:
Each year Elk River Municipal Utilities (ERMU) can provide bonus payments to Sherburne
County and Waste Management/Elk River Landfill provided the financial means and plant
capacity factors are met.
DISCUSSION:
For the calendar year of 2018 the landfill gas plant had a capacity factor of 95.19%and
generated approximately 25,350,000 kWh. As a result of the production level exceeding 95%,
Waste Management will receive a payment of$1,043.99 for 2018 operations.The production
was steady and the overall costs were reasonable considering we replaced the main bearings in
three engines.
The overall operating costs for the landfill gas plant were acceptable for 2018 with no
extraordinary expenses or failures. Based on the 2018 overall performance of the landfill gas
plant project, Sherburne County will receive a payment of$25,000.
The landfill gas plant produced over 25 million kWh which is enough electricity to supply 2,430
average residential customers in Elk River for one year.The landfill gas to electric plant
generated the equivalent of 7.6%of ERMU total sales for 2018.
The payments are not guaranteed and can change or be eliminated based on the variability of
labor, materials, unexpected or increased maintenance costs, or loss of production for various
reasons.
FINANCIAL IMPACT:
As mentioned above.
ATTACHMENTS:
• Letter to Waste Management—LFG to Electric Generation Facility Performance for 2018
• Letter to Sherburne County—LFG to Electric Generation Facility Performance for 2018
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Elk River
Municipal Utilities
February 12, 2019
Elk River Landfill
Mr. Don Yurecko
22460 Highway 169
Elk River, MN 55330
Subject: LFG to Electric Generation Facility Performance for 2018
Dear Mr. Yurecko:
The landfill gas to electric facility had a delivered capacity factor of 95.19%for 2018. As a
result of the delivered capacity factor exceeding 95%, Elk River Municipal Utilities (ERMU) will
be providing a payment of$1,043.99 to Waste Management for the operation of the facility in
2018.
The landfill gas to electric generation plant achieved great things in 2018. The facility produced
approximately 25,350,000 kWh in 2018.That is equivalent to the average annual energy
consumption of 2,430 residential customers, or the equivalent of 7.6%of ERMU's sales in 2018.
ERMU recognizes and greatly appreciates your willingness to work cooperatively to keep the
operating costs manageable for this partnership. We appreciate all of your efforts to operate
the plant in a clean, efficient, and safe manner.
If you have any questions, please feel free to contact me at 763.635.1332.
Best regards,
•7-4i00,97-4447 —
Thomas J. Sagstetter
Conservation and Key Accounts Manager
Cc: Troy Adams—ERMU General Manager
Dave Lucas—Solid Waste Administrator
ERMUMN.COM I 763.441.2020 I 13069 ORONO PARKWAY I PO BOX 430 I ELK RIVER, MN 55330-0430
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Elk River
Municipal Utilities
February 12, 2019
Sherburne County
Mr. Dave Lucas
Solid Waste Administrator
13880 Business Center Drive
Elk River, MN 55330
Subject: LFG to Electric Generation Facility Performance for 2018
Dear Mr. Lucas:
Elk River Municipal Utilities (ERMU) is providing Sherburne County with a check for$25,000 for
the overall operation of the landfill gas to electric facility for 2018 operations.
The facility's capacity factor was 95.19%for 2018. As a result of the delivered capacity factor
being greater than 95%, ERMU will provide Waste Management with a payment of$1,043.99.
ERMU recognizes and appreciates the care taken by Waste Management to operate the facility
in a safe and efficient manner that benefits the partnership.
The landfill gas to electric generation plant achieved great things in 2018. The facility produced
approximately 25,350,000 kWh in 2018.That is equivalent to the average annual energy
consumption of 2,430 residential customers or the equivalent of 7.6%of ERMU's sales for 2018.
If you have any questions, please feel free to contact me at 763.635.1332.
Best regards,
—74/Wid/-040 —
Thomas J. Sagstetter
Conservation and Key Accounts Manager
Cc: ERMU Commission
Troy Adams—ERMU General Manager
Don Yurecko- Elk River Landfill Gas Plant Manager
Kathleen Heaney-Sherburne County Attorney
ERMUMN.COM I 763.441.2020 I 13069 ORONO PARKWAY I PO BOX 430 I ELK RIVER, MN 55330-0430
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