6.1a ERMUSR 11-12-2019 �/
Elk River .M
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Troy Adams, P.E. —General Manager
MEETING DATE: AGENDA ITEM NUMBER:
November 12, 2019 6.1a
SUBJECT:
Staff Update
ACTION REQUESTED:
None
DISCUSSION:
• The Board of Directors of the Minnesota Municipal Power Agency (MMPA) met on
October 22, 2019 at Shakopee Public Utilities in Shakopee, Minnesota. Commissioner Al
Nadeau and I were both in attendance.
The Board reviewed the status of the Hometown WindPower refurbishment and life
extension project. The Board discussed the status of the renewable projects the Agency
is pursuing.
The Board approved a template Transmission Transformed Retail Rate and requested
that MMPA's members' governing bodies approve retail tariffs based on the template to
support the Agency's economic development activities.
Participation in MMPA's residential Clean Energy Choice program increased over
September, with a market penetration that is at 3.3%.
After months of discussion and much consideration, the Board made the decision to not
implement an agency-run load management program. And the Board, through
consensus, gave the members the authority to locally develop retail rate distribution-
level load management programs which control billing peak.
• The week of October 13, I attended my first American Public Power Association (APPA)
board meeting and also attended an APPA Reliable Public Power Provider(RP3) Panel
grading session.The following topics were discussed and action items taken:
The Board appointed Joy Ditto as the organization's new President & CEO. Ms. Ditto will
succeed Sue Kelly, who is retiring at the end of 2019. Currently, Ms. Ditto is the
President & CEO of Utilities Technology Council (UTC), another Washington D.C. based
trade association. Prior to UTC, Ms. Ditto worked in Advocacy for APPA as the Senior
Vice President for Legislative and Political Affairs.
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In addition to me, the Association welcomed several new board members.
The Board approved changes to the association's resolutions process.
The Board approved changes to the corporate associate membership dues structure.
The Board reviewed the association's reserves policy.
• On October 29 in Mason City, IA, the Midwest Municipal Transmission Group (MMTG)
held their annual membership meeting and a meeting of the board of directors.
participated via conference call. MMTG is an organization of Minnesota and Iowa
municipal utilities which helped ERMU obtain the rights to own transmission in the
Midcontinent Independent System Operator (MISO) footprint. Because of this group,
ERMU was then able to invest in the CAPX2020 Brookings transmission line through
Central Minnesota Municipal Power Agency(CMMPA). I have been on the board since
2009.The following topics were discussed and action items taken:
Our legal counsel, Spiegel & McDiarmid, provided regulatory updates on: the Federal
Energy Regulatory Commission (FERC), status on return on equity (ROE) proceedings, tax
changes and implications, energy storage, distributed energy resources and aggregators,
resiliency of the grid, FERC commissioner appointments, and Public Utility Regulatory
Policies Act (PURPA).
The board chair provided an update on transmission opportunities.
The Board reviewed and approved the 2020 budget, zonal dues, and general
membership dues. Due to the generally stagnant load across the membership, the
impact to the members' dues remains basically at the same levels as 2019. For ERMU,
2020 dues are the same as 2019 dues at $6,549 annually. Since the departure of Willmar
from MMTG, ERMU is the only member in the Great River Energy MISO zone leaving the
total GRE zonal fund balance for ERMU.This fund is used for transmission related
litigation and interventions.
The Board approved a financial reserves and investments policy regarding liquidity.
• The applicant for the Information Technology/Operational Technology Manager
position has rescinded acceptance of our job offer.
ATTACHMENTS:
• MMPA 3Q Unaudited Financials—September 30, 2019
• Bring Me The News—Xcel Energy proposes 15.2%electricity price hike over 3 years—
November 2, 2019
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Minnesota Municipal Power Agency
Statement of Net Position
As of September 30,2019-Unaudited
Assets
Current assets:
Cash and cash equivalents $ 37,985,886
Restricted cash and cash equivalents 16,277,641
Accrued interest receivable 757,191
Power sales and other receivables 13,449,063
Fuel inventory 1,216,569
Plant inventory-spares 3,339,902
Prepaid expenses 889,120
Total current assets 73,915,372
Noncurrent assets:
Capital assets:
Electric generation assets 428,093,852
Land 7,066,719
Less accumulated depreciation (138,562,900)
Property and equipment,net 296,597,671
Construction in progress 512,173
Total capital assets,net 297,109,844
Investments 40,368,791
Restricted cash,cash equivalents,and investments 19,117,321
Prepaid expenses 518,353
Future recoverable costs 50,555,516
Total noncurrent assets 407,669,825
Total assets 481,585,197
Deferred Outflows
Deferred outflows of resources 1,637,217
Total assets and deferred outflows of resources $ 483,222,414
Liabilities
Liabilities:
Current liabilities:
Accounts payable and accrued liabilities $ 9,490,227
Accrued interest payable 5,909,308
Long-term debt due within one year 10,368,333
Capital lease liability due within one year 1,075,805
Derivative instruments-futures 354,830
Total current liabilities 27,198,503
Long-term debt,net 262,446,396
Capital lease liability 16,178,571
Derivative instruments-futures 3,530
Total noncurrent liabilities 278,628,497
Total liabilities 305,827,000
Deferred Inflows
Deferred inflows of resources:
Rate stabilization 33,071,000
Other 8,265,500
Total liabilities and deferred inflows of resources 347,163,500
Net Position
Net position:
Net investment in capital assets 33,007,694
Restricted for debt service 16,277,641
Unrestricted 86,773,579
Total net position 136,058,914
Total liabilities and deferred inflows of resources and net position $ 483,222,414
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Minnesota Municipal Power Agency
Statements of Revenues,Expenses and Changes in Net Position
YTD September 30,2019-Unaudited
Operating revenue:
Power sales to members $ 109,639,116
Power sales to non-members 1,030,489
Total operating revenue 110,669,605
Operating expenses:
Power acquisition expense 38,748,080
Transmission 18,079,032
Other operating expenses 20,893,948
Depreciation 10,847,622
Total operating expenses 88,568,682
Operating income(loss) 22,100,923
Nonoperating revenues(expenses):
Amortization of premium on long-term debt,net 849,437
Interest expense (9,702,465)
Investment income 1,963,973
Loss on bond investment redemption (56,710)
Net change in the fair value of investments 1,139,663
Total nonoperating revenues(expenses),net (5,806,102)
Change in net position before future recoverable costs 16,294,821
Future recoverable costs 1,443,297
Change in net position 17,738,118
Total net position,beginning of year 118,320,796
Total net position, September 30,2019 $ 136,058,914
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11/4/2019 Xcel Energy proposes 15.2%electricity price hike over 3 years-Bring Me The News
BRING ME THE NEWS
HOME > NEWS
Xcel Energy proposes 15.2% electricity price hike over 3 years
It's filed the proposal with the Minnesota PUC.
ADAM UREN • NOV 2,2019
Following hot on the heels of Centerpoint's proposed gas price hike,Xcel Energy has proposed its own rate hike for
Minnesota customers between 2020-22.
The proposal would increase the average residential bill by 15.2 percent over the three years,adding$4.80 to monthly bills in
2020,$1.25 in 2021,and $3 in 2022.
That would mean another$108.60 added to the average annual electricity bill by 2022.
Xcel Energy, Minnesota's largest electricity utility, is seeking to increase revenues by$466 million through the rate rise, but
will have to wait a while before a final decision is made by the Minnesota Public Utilities Commission (PUC).
In the meantime, it's asked for a 4.1 percent interim increase in the rate,which would go into effect on Jan. 1. If the PUC ends
up approving increases lower than 4.1 percent, customers will get a refund.
The utility says it would use the additional revenue to build new and upgrade its transmission and distribution lines, building
an "advanced electric grid"that provides more options for customers.
This would comprise an investment of$147 million,with a further$63 million earmarked for Xcel's nuclear energy plants at
Prairie Island and Monticello.
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Xcel's efforts to provide 100 percent carbon-free energy by 2050 continue as well,with a little over$80 million of costs
relating to its wind energy investment a part of the$466 million revenue boost, per the Star Tribune.
The utility argues that shifting to carbon-free energy sources will prove more sustainable financially for customers in the
long term,though has said in the past that it will require some up-front investment.
"We are further strengthening our core services to meet our customers' energy needs, both today and as we build toward our
vision of providing 100%carbon-free electricity by 2050,"said Xcel CEO Chris Clark in a statement sent to BMTN.
"We've taken advantage of the falling cost of renewable energy and new ways of saving energy to help keep overall bills low,
even as we're making significant grid and service upgrades for our customers.Our investments position us to provide the
clean and reliable electricity they need,while maintaining affordability."
https://bring methenews.com/minnesota-news/xcel-energy-proposes-15-2-ele2tcty-price-hike-over-3-years 1/1