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2.5. ERMUSR 05-14-2019 Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Tom Sagstetter—Conservation & Key Accounts Manager MEETING DATE: AGENDA ITEM NUMBER: May 14, 2019 2.5 SUBJECT: Elk River Municipal Utilities/ Connexus Energy—Joint Request for Minnesota Public Utilities Commission (MPUC) Modification of the Parties' Electric Service Territory Boundary ACTION REQUESTED: Receive the MPUC Notice of Approval for the ERMU/Connexus Energy Electric Service Territory Boundary Modification BACKGROUND: In March 2015 Elk River Municipal Utilities and Connexus Energy executed mutually agreeable terms with a multiyear arrangement for the Connexus service territory within the City of Elk River corporate boundary to be transferred to ERMU. DISCUSSION: The fifth and sixth service territory areas including approximately 336 customers were transferred to ERMU under these terms in the fall of 2018. This transfer results in a service territory boundary change which needs to be filed with the MPUC. The terms negotiated in the service territory transfer agreement assign ERMU the authority to jointly file the request for MPUC to modify the electric service territory boundary. Connexus reviewed and approved that language.This filing was then made electronically. Docket No. E-234,101/SA-19-152 was considered and approved by the MPUC on April 11, 2019. FINANCIAL IMPACT: None ATTACHMENTS: • Minnesota Public Utilities Commission Notice of Approval of the Elk River Municipal Utilities/Connexus Energy Joint Request for Modification of the Parties' Electric Service Territory Boundary—April 11, 2019. Page 1 of 1 39 BEFORE THE MINNESOTA PUBLIC UTILITIES COMMISSION Dan Lipschultz Commissioner Matthew Schuerger Commissioner Katie J. Sieben Commissioner John A. Tuma Commissioner Kaela Brennan SERVICE DATE: April 12, 2019 McGrann Shea Carnival Straughn & Lamb, Chtd. 800 Nicollet Mall, Suite 2600 DOCKET NO. E-234,101/SA-19-152 Minneapolis, MN 55402 In the Matter of the Joint Request of Elk River Municipal Utilities and Connexus Energy for Approval to Modify Electric Service Territory Boundaries The above-entitled matter was considered by the Commission on April 11, 2019, and the following disposition made: 1. Approved the permanent service territory transfer from Connexus Energy to Elk River Municipal Utilities. 2. Requested that the Minnesota Geospatial Information Office update the Commission's maps to reflect the service area designations as shown on the map in the petition. The Commission agrees with and adopts the recommendations of the Department of Commerce, which are attached and hereby incorporated into the order. This order shall become effective immediately. BY ORDER OF THE COMMISSION /). &dr Daniel P. Wolf Executive Secretary Z^,1y��y yy C; ;yyt This document can be made available in alternative formats (e.g., large print or audio) by calling 651.296.0406 (voice). Persons with hearing loss or speech disabilities may call us through their preferred Telecommunications Relay Service or email consumer.puc a,state.mn.us for assistance. 40 COMMERCE DEPARTMENT March 5, 2019 Daniel P. Wolf Executive Secretary Minnesota Public Utilities Commission 121 7th Place East, Suite 350 St. Paul, Minnesota 55101-2147 RE: Comments of the Minnesota Department of Commerce, Division of Energy Resources Docket No. E234, E101/SA-19-152 Dear Mr. Wolf: Attached are the comments of the Minnesota Department of Commerce, Division of Energy Resources (Department) in the following matter: The Joint Request of Elk River Municipal Utilities and Connexus Energy for approval to Modify Electric Service Territory Boundaries. The petition was filed February 11, 2019 by: Kaela Brennan McGrann Shea Carnival Straughn & Lamb, Chtd. 800 Nicollet Mall, Suite 2600 Minneapolis, MN 55402 The Department recommends that the Minnesota Public Utilities Commission (Commission) approve the requested permanent service territory transfer from Connexus Energy to Elk River Municipal Utilities, and is available to answer any questions the Commission may have. Sincerely, /s/ DALE V. LUSTI Financial Analyst DV L/j a Attachment 85 7th Place East- Suite 280- Saint Paul, MN 55101 I P: 651-539-1500 I F: 651-539-1547 mn.gov/commerce An equal opportunity employer 41 ill COMMERCE ril DEPARTMENT Before the Minnesota Public Utilities Commission Comments of the Minnesota Department of Commerce Division of Energy Resources Docket No. E234, E101/SA-19-152 I. BACKGROUND Elk River Municipal Utilities (the Municipal) is an electric municipal utility organized and existing under the laws of the State of Minnesota. Connexus Energy (the Cooperative) is an electric distribution cooperative organized and existing under the laws of the State of Minnesota. II. SUMMARY OF PROPOSAL On February 11, 2019, the Municipal and Cooperative, collectively the Parties,jointly filed a petition under Minn. Stat. 216B.44, asking the Minnesota Public Utilities Commission (Commission) to modify the Parties' service territory boundaries. Approval of the Parties' request would permanently transfer the Affected Area from the Cooperative to the Municipal. III. DEPARTMENT ANALYSIS A. TRANSFER OF THE AFFECTED AREA FROM THE COOPERATIVE TO THE MUNICIPAL The petition's Exhibit A is a map of Affected Area which involves approximately 1,871 acres and 336 customers (321 residential, 15 commercial and 0 industrial). The Parties do not have a separate legal description of the Affected Area, but have agreed to provide MnGeo whatever information is needed to facilitate the adjustment in the official maps. B. CUSTOMER NOTICE On August 1, 2018, August 9, 2018, August 27, 2018, August 31, 2018 and September 7, 2018, the Parties provided notice to the Affected Customers regarding the change in electric service providers. 42 Docket No. E234, E101/SA-19-152 Analyst assigned: Dale V. Lusti Page 2 In its petition, the Parties acknowledged that the Commission wishes to direct separate notice to customers as to the pending proceeding before the Commission, and noted that the Parties will provide this notice to affected customers and arrange separate filing with the Commission. Exhibit C to the petition is a proposed notice the Parties expected to provide to all customers in the Affected Area of the pending Commission proceeding. On February 25, 2019, the parties provided an AFFIDAVIT OF SERVICE that on February 21, 2019, a notice letter was mailed to each customer affected by the boundary change proceeding. C. ANTICIPATED TRANSFER DATE As stated in the petition, the transfer during the period of September 13, 2018 and September 18, 2018 occurred efficiently and without technical difficulties. D. COMPENSATION The Department notes that the Parties have agreed upon appropriate compensation regarding the permanent transfer of service rights in the Affected Area. Thus, the Department agrees that the Parties' request to establish the Affected Area as part of the Municipal's service area is consistent with Minn. Stat. 2166.44. IV. RECOMMENDATION The Department recommends that the Commission approve the permanent service territory transfer from Connexus Energy to Elk River Municipal Utilities. MnGeo should update the Commission's maps to reflect the service area designations as shown on the map in the Petition. Please note that Shana Neumann is the primary MnGeo Contact for the Commission's service area map updates. /ja 43 CERTIFICATE OF SERVICE I, Robin Benson, hereby certify that I have this day, served a true and correct copy of the following document to all persons at the addresses indicated below or on the attached list by electronic filing, electronic mail, courier, interoffice mail or by depositing the same enveloped with postage paid in the United States mail at St. Paul, Minnesota. Minnesota Public Utilities Commission ORDER Docket Numbers: E-234,101/SA-19-152 Dated this 12th day of April,2019 /s/Robin Benson 44 First Name Last Name Email Company Name Address Delivery Method View Trade Secret Service List Name Tray Adams tadams@elkriverutilities.co Elk River Municipal Utilities.13069 Orono Parkway Electronic Service No OFF_SL_19-152_SA-19- m PO Box 430 152 Elk River, MN 55330 Kathleen M. Brennan kmb@mcgrannshea.com McGrann Shea Carnival, 800 Nicollet Mall Ste 2600 Electronic Service No OFF_SL_19-152_SA-19- Straughn 8 Lamb, 152 Chartered Minneapolis, MN 554027035 Generic Notice Commerce Attorneys commerce.attorneys@ag.st Office of the Attorney 445 Minnesota Street Suite Electronic Service Yes OFF_SL_19-152_SA-19- ate.mn.us General-DOC 1800 152 St.Paul, MN 55101 Ian Dobson residential.utilities@ag.stat Office of the Attorney 1400 BRM Tower Electronic Service Yes OFF_SL_19-152_SA-19- e.mn.us General-RUD 445 Minnesota St 152 St.Paul, MN 551012131 Sharon Ferguson sharon.ferguson@state.mn Department of Commerce 85 7th Place E Ste 280 Electronic Service No OFF_SL_19-152_SA-19- .us 152 Saint Paul, MN 551012198 Sara G McGrane smcgrane@felhaber.com Felhaber Larson 220 S 6th St Ste 2200 Electronic Service No OFF_SL_19-152_SA-19- 152 Minneapolis, MN 55420 Greg Ridderbusoh greg.ndderbusch@connexu Connexus Energy 14601 Ramsey Boulevard Electronic Service No OFF_SL_19-152_SA-19- senergy.com 152 Ramsey, MN 55303 Tom Sagstetter tagstetter@elkriverutilities. Elk River Municipal Utilities 13069 Orono Parkway Electronic Service No OFF_SL_19-152_SA-19- com PO Box 430 152 Elk River. MN 55330 Daniel P Wolf dan.wolf@state.mn.us Public Utilities Commission 121 7th Place East Electronic Service Yes OFF SL_18-152_SA-19- Suite 350 152 St.Paul, MN 551012147 45