5.5 ERMUSR AGENDA 07-02-2013
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UTILITIES COMMISSION MEETING
TO:
Elk River Municipal Utilities Commission
John Dietz – Chair
Al Nadeau – Vice Chair
Daryl Thompson – Trustee
FROM:
Troy Adams, P.E. – General Manager
MEETING DATE:
July 2, 2013
AGENDA ITEM NUMBER:
5.5
SUBJECT:
Diesel Power Plant Operator Call-Out Provisions
BACKGROUND:
Over that past year, staff has worked with Great River Energy (GRE) on revisions to the
Capacity Contract for our Diesel Power Plant. The revisions reflect changes to the market as
well as changes to how generation is now scheduled with Midcontinent Independent System
Operator (MISO). The revision also now has our engines specified as emergency generation.
The new MISO capacity market is “year ahead” and we are committed for this MISO planning
year covered under our current contract. ERMU will have the opportunity to revise the contract
for the next planning year based on our experience this planning year.
DISCUSSION:
The contract specifies if MISO call upon GRE for our engines to run, ERMU is required to have
them on line within four (4) hours. In the past we have not been called on to run our engines
often. The last time we’ve been called to run was in 2006.
The MISO capacity market has significantly changed this year and GRE is working through the
details with their contracted generator to make sure we are able to meet the run and reporting
requirement. These discussions with GRE have led to ERMU identifying our internal
deficiencies relating to our ability to meet our contractual obligations. There is potential for our
generation to be call upon afterhours, on a weekend, or on a holiday. Because our power plant is
not staffed 24/7, we need to address how we’d meet our requirement to run if we are called upon.
Even with the changes in the MISO capacity market, the likelihood for our generation to run is
small. The may run this year, but not often enough to justify the costs for ERMU to has an on-
call rotation for power plant operators. Instead, staff proposes an incentive program in the form
of a call out stipend specific for the running of the diesel generation afterhours, on weekends, or
on holidays.
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The following the call out section for the ERMU employee handbook with the proposed
additional power plant operator call out language indicated in red:
24. CALL OUT TIME: REGULAR FIELD WORKERS
Regular field workers who are asked to report for work outside their regular working
hours shall be paid a minimum of two (2) hours each time they report for work.
In addition to being paid as applicable for hours worked, Regular field workers who are
asked to report for work outside their regular working hours as required to meet the
Diesel Power Plant Capacity Contract obligations for the purposes of running the power
plant shall receive a stipend equal to twelve (12) hours at the worker’s base rate of pay.
This call out stipend is in lieu of a power plant on-call rotation.
Scheduled work contiguous to normal working hours shall not be subject to this two (2)
hour minimum reporting pay obligation. However, if a regular field worker reports for
work before or remains after the regular eight (8) hour work day, or works on a
Saturday, Sunday or Holiday, he/she will be paid at the applicable overtime rate for each
hour worked over eight in a day, or on a Sunday or Holiday, as applicable.
Work performed for which an employee does not report to a particular work site, such as
work that can be performed on a laptop computer from a non-work site, shall not be
subject to this two hour minimum reporting pay obligation.
This policy does not apply to employees other than regular field workers
ACTION REQUESTED:
Staff recommends the Commission approve the revision to the employee handbook to
incorporate the provision for a call out stipend specific for operation of our diesel power plant
during non-regular work hours.
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