6.1a ERMUSR 02-12-2019 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Troy Adams, P.E.—General Manager
MEETING DATE: AGENDA ITEM NUMBER:
February 12, 2019 6.1a
SUBJECT:
Staff Updates
ACTION REQUESTED:
None
DISCUSSION:
• The Board of Directors of the Minnesota Municipal Power Agency(MMPA) met on
January 22, 2019 at the offices of Shakopee Public Utilities. Commissioner Al Nadeau
and I were both able to attend the meeting.
The Board reviewed 2018 performance. MMPA's management's presentation is
attached.
The Board discussed the status of the renewable projects the Agency is pursuing.
Participation in MMPA's residential Clean Energy Choice program increased over
December. Customer penetration of MMPA's Clean Energy Choice program for
residential customers is at 2.9%, with a range of market penetration by member of 1.9%
to 5.2%.
• The leadership team conducted our annual strategic planning session on January 23.
Many initiatives identified through this process will be vetted for a go/no-go decision for
inclusion in the budging process.
• On January 28, ERMU and Connexus Energy held their annual operation meeting. During
this meeting we review results and process from previous territory transfer, discuss
planning details for future territory transfer, review emergency tie point operation
guidelines, and discuss other relevant industry topics.
• I was requested by the House Energy and Climate Committee Chair to testify during a
committee meeting to hear about "Minnesotans making progress in energy efficiency,
renewables and climate change." Specifically, I was asked to speak about how ERMU
"switched wholesale supplier, cut carbon emissions, and also reduced rates for your
customers."The committee meeting was well attended. And, my testimony went well.
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• Conservation Improvement Program (CIP)joint Minnesota Municipal Utilities
Association (MMUA) and Minnesota Rural Electric Association (MREA) workgroup's
small legislation negotiation team met with the Non-Profit Organizations (NGOs) on
Monday February 4 to finalize alignment on bill language for CIP modernization.
MMUA/MREA workgroup intend to have a Senate author to introduce our bill before
the end of next week.
• The Lead Bore Rig Operator position posting closed on January 25. Interviews will be
conducted on February 11.
ATTACHMENTS:
• 2018 MMPA Year In Review
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2018 Review
January 22, 2019
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Outline
• Strategic Review
• Operational Review
• Financial Review
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Strategic Review
• Acquired Capacity Thru 2029/2030
• 100% Renewable Energy Goal
• Adopted Growth Objective
• Developing Load Control Platform
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Growth Objective
• Retain Existing Customers
• Offer New Products
— EV
— Interruptible
— Load Control
• Add Load
— Economic Development
— Service Territory Acquisition
— New Members
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Load Control
• Developing Load Control Platform
• To Allow Members to Offer
— Retail Products
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Operational Review
• Successful Major Maintenance Outage at FEP
— No Unresolved Items
— On Budget
— Next Major in 2023
• Completed Three Hometown Solar Installations
• Exploring Repowering of Hometown Wind Program
• Successful Pilot of High School Energy Ed. Program
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Financial Review
• Competitive Rates
— Lower Than Xcel
• Stable Financial Position
• Bond Rating Upgrades
— Fitch A+
— Moody's Al
- Reasons for upgrade:
• Strong Member Credit Profile
• Competitive Rates
• Strong Energy Procurement and Financial Strategies
• Effective Management
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