2.4 ERMUSR 11-09-2021UTILITIES COMMISSION MEETING
TO:FROM:
ERMU Commission Theresa Slominski –General Manager
MEETING DATE: AGENDA ITEM NUMBER:
November 9, 2021 2.4
SUBJECT:
Central Minnesota Municipal Power Agency Brookings-Twin Cities Project Refinance of 2012A
Revenue Bonds, Series 2021 –Certificate of Utility System Officer and Other City Official
ACTION REQUESTED:
Receive the revised executed CMMPA Brookings-Twin Cities Project Refinance of 2012A
RevenueBonds, Series 2021 – Certificate of Utility System Officer and Other City Official.
BACKGROUND:
In February 2007, ERMU entered into an agreement to participate through Central Minnesota
Municipal Power Agency (CMMPA) in the CAPX2020 Brooking-Twin Cities Transmission Project.
This allows ERMU to own, not rent, transmission assets. In 2012, CMMPA issued approximately
$34 million in bonds for the Brookings project. CMMPA is a 5% owner of the project, and ERMU
is 15.5% of CMMPA’s 5%. There are 16 entities like ERMU participating in the CMMPA 5%. The
original projection for our return on investment was approximately $124,000 annually over the
40 year project life.
DISCUSSION:
CMMPA has initiated the process to refinance the 2012A Bonds that funded the above
transmission project, in a Series 2021 Bond for approximately $18,235,000. Based on current
market conditions, CMMPA believes significant savings can be achieved. As a “Major
Participant,” we needed to execute a Certificate of Utility System Officer and Other City Official,
which was done September 9, 2021, and forwarded to CMMPA. In October we presented that
certificate for the commission to receive. CMMPA’s bond counsel has revised this certificate
with updated dates and removed the reference to Western Area Power Association that was
not applicable to us.
We are providing the revised certificate for the commission to receive at this month’s meeting
and have last month’s certificate for reference.
ATTACHMENTS:
Certificate of Utility System Officer and Other City Official of City of Elk River 2021 Final
Certificate of Utility System Officer and Other City Official of City of Elk River 2021
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