6.1a ERMUSR 02-14-2023�i
Elk River --�-
Municipal Utilities UTILITIES COMMISSION MEETING
TO:
FROM:
ERMU Commission
Mark Hanson — General Manager
MEETING DATE:
AGENDA ITEM NUMBER:
February 14, 2023
6.1a
SUBJECT:
Staff Update
ACTION REQUESTED:
None
DISCUSSION:
• As stated in my mid -month update, the conservation & key accounts manager and I
attended Minnesota Municipal Utilities Association's (MMUA) Legislative Conference last
week. Although several legislative issues were discussed, most of the conference was
focused on a proposed bill that would mandate 100% carbon -free energy production by
2040. The bill has since passed through both legislative bodies along party lines and was
signed by Governor Walz on Tuesday, February 7. Recent media coverage on the bill can be
found here.
Proponents of the bill stated it was necessary to encourage the technological innovations
and grid stabilization needed to meet the 2040 deadline. In the short term, the bill will likely
increase power costs and reduce reliability as carbon -free energy will not always be
available when needed.
MMUA, Minnesota Rural Electric Association, and the entirety of their membership,
opposed the bill due to insufficient battery technology, grid reliability, and renewable
energy efficiency. The bill is also expected to drive up the cost of renewable energy because
it penalizes the use of fossil -fuel based energy unless offset by the purchase of renewable
energy certificates (RECs). RECs are used to track renewable energy production and usage
since the modern electrical grid can pull energy from virtually anywhere in the county.
• 1 attended the February 6 City Council meeting to observe the commission interviews and
the acceptance of WSB's final report on the NE/NW Urban Services Expansion effort. Two
candidates were interviewed: Maija Myhra and Nicholas Zerwas. The Council will select a
candidate at their February 21 meeting. The Council accepted WSB's final expansion report
after hearing concerns expressed by landowners representing two properties. In his motion
to accept the report, Councilmember Westgaard noted the report is for guidance only and
does not direct the City Council or the Utilities Commission in any way.
Page 1 of 2
• 1 will be out of the office February 22-23 attending MMUA's Disaster Preparedness
Conference and again February 27 — March 2 attending the American Public Power
Association's Legislative Rally in Washington, DC.
Page 2 of 2
99