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5.3. ERMUSR 03-12-2019 Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Michelle Canterbury—Executive Administrative Manager MEETING DATE: AGENDA ITEM NUMBER: March 12, 2019 5.3 SUBJECT: 2018 Annual Report ACTION REQUESTED: Receive the 2018 Annual Report BACKGROUND: In 2018 the annual report was evaluated for its value,the process in which it was produced and distributed, and the timing and relevance of the information. At that time,staff determined that a smaller more concise report would lower printing and distribution costs making it economically feasible to distribute the report to all of our customers;this process was implemented in 2018.At that time it was also determined that it was possible to produce the annual report earlier in the year so the information would be more relevant from a timing perspective; with this process to begin in 2019. DISCUSSION: Staff is pleased to present the 2018 Annual Report which features our transition to Minnesota Municipal Power Agency(MMPA) and their diverse energy portfolio. Equally important is our story of what brought about this change, and how this change has offered opportunity. The 2018 annual report will be printed and included for distribution to all ERMU customers with their March billing statement.The report will also be available digitally on ERMU's website and social media sites. ATTACHMENTS: • 2018 Elk River Municipal Utilities Annual Report Page 1 of 1 73 L'L..4t Elk River* Municipal Utilities .„.. .,: .........„.„ ... „._ .... ... , . ,„ ... .„.„.„..„, ,. . :e. 44 , '••••,[4:,,...ill c c .,.- . ' •' ' 4 4 .:. I . I F ' i g t • .., .,14 Va.- • ,--,• •,fl, :$ . . ANNUAL REPORT 2018 DESIGNED WITH THE FUTURE IN MIND A LETTER FROM THE GENERAL MANAGER For decades, Elk River Municipal Utilities(ERMU) had received wholesale power from Great River Energy(GRE) through a contract with one of their member cooperative utilities. In September 2008, ERMU was given a ten year notice of termination of that power contract. In that action,our community was presented with both an inevitable change and opportunity. Just like the electricity and water which ERMU supplies to our community, life continues to flow and ERMU began the process to find a new power provider.After careful consideration,the ERMU Commission entered into an agreement with the Minnesota MunicipaL Power Agency(MMPA)to become their twelfth member city.We joined cities with similar interests that share information and work toward a greater collective good.We joined an agency as an owner, rather than a renter.We joined an agency with a modern, efficient, green, and flexible generation fleet that has zero power being generated from coal.We joined an agency in which,for the first time,we have local representation and a say in our future.We joined an agency with lower wholesale power costs.We joined an agency well positioned for the future. On October 1, 2018, the operation transition was made and our community first received power from MMPA. Our community was now receiving power from something of which we are a member owner, for which we have local control, and which has positioned us for historic action by the ERMU Commission to LOWER ELECTRIC RATES for 2019. IMMIF)A Change is opportunity.The next chapter in our story has begun. ERMU is owned by those we service.We are PUBLIC POWER and WATER, and are proud to serve our community. Minnesota Municipal Power Agency - Troy Adams, P.E., General Manager HOW POWER GETS TO YOUR HOME MMPA's Power Supply SINN O NATURAL GAS 0 � I 0 © SOLAR TECHNOLOGY — MMPAsupplies ERMU delivers power HOME to residential and power to ERMU. business customers © WIND TECHNOLOGY Q BIO ENERGY ❑ ❑ • POWER PURCHASES — I " BUSINESS Content provided by MMPA 75 HIGHLIGHTING DIVERSITY IN MMPA'S POWER SUPPLY O FARIBAULT ENERGY PARK --.- This facility was built as a model of environmental responsibility - '-'' and innovation; it is integrated into the community by providing =`t.c education and recreation. Students and visitors can tour �'' — the facility to view the control room and the steam turbine, . ,�'�' while among its 35 acres of wetlands, educational displays '`� '? � = m"�„ x demonstrate alternative energy sources, including solar and _. � _ .1LL, "; wind.Visitors to this park-like area are even able to drop a fishing line into one of the ponds. Photo provided by MMPA - © BUFFALO SOLAR ____ --` . . Comprised of more than 25,000 panels, Buffalo Solar is one % ` of the largest solar projects exclusively serving municipal _ utilities. MMPA utilizes 100 percent of its renewable energy a. output as a part of a power supply portfolio that is positioned `' to exceed Minnesota's Renewable Energy Standard, requiring that 25 percent percent of power comes from renewable sources by 2025. Photo provided by MMPA © BLACK OAK GETTY WIND FARM 1_ ` ''' Wind power is one of the fastest growing energy sources worldwide, and it produces no carbon emissions or pollution. \)P.°°°°°---- In Minnesota,wind turbines are an increasingly common part of the landscape. In 2016, MMPA expanded its portfolio of renewable resources to include power from the Black Oak Getty Wind Farm. Utilizing power output from the 78-megawatt I__ -- --- (MW)wind farm, located in Stearns County,further demonstrates the Agency's commitment to renewable energy. Photo provided by MMPA r- � 0 HOMETOWN BIOENERGY /6,' - This biomass facility uses anaerobic digestion technology k to produce biogas from local agricultural and food I processing wastes.The biogas is then burned in r ,- �, reciprocating engines to produce electricity.The facility, which is located in Le Sueur,also creates nutrient-rich fertilizer used by local farmers. Hometown BioEnergy ,•,. supports the community by collecting and processing • „fro- local wastes to create a renewable source of electricity. Photo provided by MMPA 76 BRINGING MMPA HOME In 2015 MMPA began the Hometown Solar Grant Program.The purpose of the grant is to provide 1- an educational asset to member communities. Participants receive a five kilowatt solar panel ; which is installed in a central location,allowing communities to learn first-hand how sunlight is . converted into electricity,as well as the unique characteristics and benefits of solar energy. Nine of the twelve MMPA member communities \ now host Hometown Solar installations. ELk River will install its own in 2o1g! POWERING THE FUTURE The Energy Education Program was created to provide learning opportunities to students in MMPA's member communities. Developed with the Science Museum of Minnesota,there are multiple educational options offering interactive learning Itk, activities, specifically designed to be integrated r �' into the state's 4th grade science standards. , '", Through the Energy Education Workbook, Lesson ¢ 1 ' plans, interactive tours, and in-school assemblies, ' students Learn how energy is generated, wormy' transmitted,and used.Within our community, Lincoln, Meadowvale, Otsego, St.Andrew's,and Photo provided by MMPA Twin Lakes elementary schools have already hosted events. MMPA continues to demonstrate its commitment to the communities it serves by expanding this program to include loth through 12th graders. Students will be encouraged to explore in-depth energy topics such as project development, power generation, and energy-focused careers. 4114, 13069 Orono Parkway, PO Box 430 Elk River, MN 55330 1763.441.2020 I www.ERMUMN.com Connect with Us: f V