6.1a ERMUSR 07-13-2021______________________________________________________________________________
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UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Theresa Slominski – General Manager
MEETING DATE:
July 13, 2021
AGENDA ITEM NUMBER:
6.1a
SUBJECT:
Staff Update
ACTION REQUESTED:
None
DISCUSSION:
• The Board of Directors of the Minnesota Municipal Power Agency (MMPA) met on June
22, 2021, at the Chaska Community Center in Chaska, Minnesota. It was the Board’s first
in-person meeting since February 2020. Commissioner Mary Stewart was the only one
attending as I was at the APPA Conference. A public summary of the meeting is below.
o The Board reviewed the Agency’s financial and operating performance for May
2021.
o The Board was informed that MMPA hit a new all-time coincident peak of 421
MW in June. The extended period of hot weather has caused sales to be
substantially above budget for the first half of June.
o Management discussed the value of the diverse resource portfolio, consisting of
different technology and fuel types at several locations in Minnesota.
o The Board discussed the status of the Walleye Wind project, a 110 MW wind
farm in southwestern Minnesota. MMPA has a long-term contract for all the
wind farm’s output. The project is currently in the permitting process.
o MMPA will be installing a dual level 2 electric vehicle charger in each MMPA
community that wants one. The Board approved offering the program to
members in 2022 as well.
o Management provided an update on the Board’s economic development
initiatives in MMPA member communities.
o The Board discussed energy topics from the 2021 legislative session and current
special session.
o Greg Drent of Shakopee Public Utilities was elected as MMPA Treasurer, filling
the vacancy created by Joseph Steffel’s retirement from the City of Buffalo.
o There was an increase of 4 customers participating in MMPA’s residential Clean
Energy Choice program from April to May. Customer penetration of the program
for residential customers remains at 3.7%.
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• I attended the APPA Summer Conference meeting in Orlando, FL June 20-23.
Attendance was down compared to other years, 800 this year versus 1,300 in previous
years. Some key takeaways from the conference are noted below.
o Joy Ditto, President and CEO of APPA, addressed the conference with a message
that public power entities need to share their stories and highlight their
strengths. Typically, we are a humble group and a stable provider of key
essential services. When services are being delivered so well and so reliably, the
users can take us for granted. It is important to communicate with our users
often to highlight our strengths and our commitment to our communities. She
also spoke about the challenges of net zero emissions proposed timelines,
climate change, and cybersecurity, which APPA is positioned to help big and
small utilities overcome.
o Admiral Jim Stavridis spoke about the pandemic and global politics. He noted
that the Spanish Influenza pandemic was in 1920, and approximately every 100
years there is a pandemic of some sort. We learn from each one and need to be
reminded to continually be vigilant in progressing, not just surviving the current
pandemic. In speaking about global politics, he noted that the US political
gridlock handicaps us, and other nations can take advantage. He cited four
leadership tools that he feels are needed for global political success: Innovation
and the ability to change, Communication on all sides and not just one-sided,
Collaboration and Teamwork within countries and between countries, and Speed
in how quickly we respond and change as needed. In emphasizing this last tool of
Speed, he noted that the cheetah, fastest of all land animals, can go from 0-60
mph in 2 seconds. The cheetah’s body is very sleek, long, and muscular, (built for
speed) but it has an enormous tail. The large tail is needed for proper balance to
keep the animal on course, able to focus, and change course quickly and
effectively. That tail is analogous to discipline and strategy in our decision
making.
o There was a panel discussion on resiliency and response from four CEOs that
each shared their challenges (and how they overcame them) throughout the
pandemic. The challenges shared were devastating hurricanes; freezing
temperatures; the natural gas situation in February; communicating with
employees, public, commissions, and customers during shutdown; and a
potential takeover for one utility. The common theme for overcoming challenges
was the strength in the community, whether it is the company community, the
mutual aid community, or the public power community. We reach out and help
each other, sharing resources and best practices, and this a great strength of
public power.
o Geoff Tuff, author of the book Detonate spoke of the need to be strategic and
think exponentially, rather than linearly (which is the natural human tendency).
We need to be thinking with a beginner’s mind where the possibilities are
endless, instead of an expert’s mind where the possibilities are few. The experts
are looking backwards and analyzing data, where we need to be looking forward.
Essentially, we need to blow up (detonate) the current best practices and create
new ones to survive.
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