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2.6 ERMUSR 04-11-2023�i Elk River --�- Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Mark Hanson — General Manager MEETING DATE: AGENDA ITEM NUMBER: April 11, 2023 2.6 SUBJECT: Termination of Voltus Distributed Energy Agreement ACTION REQUESTED: Approve the Termination of the Distributed Energy Resources Agreement between Elk River Municipal Utilities and Voltus, Inc. BACKGROUND: On February 14, 2023, the ERMU Commission approved an agreement with Voltus, Inc. as a means of replicating the distributed energy opportunity we had with Great River Energy for our four engines/generators. Our current wholesale power provider, Minnesota Municipal Power Agency (MMPA), does not offer a similar program. Both MMPA and Minnesota Municipal Utility Association stated they understood and supported our interest in pursuing the opportunity. DISCUSSION: As was briefed at the March 14, 2023, meeting, Voltus had not made it clear that the inclusion of energy curtailment was required for Midcontinent Independent System Operator (MISO) registration. Unfortunately, staff were not able to confidently identify curtailment opportunities in time to meet MISO's registration deadline. Although we may work with Voltus again for registering the generators in MISO's 2024 behind the meter generation program, staff determined the best course of action was to cancel the existing agreement. We will draft a new agreement with Voltus if we partner with them in the future. ATTACHMENTS: • Letter of Termination — Voltus DE Agreement Page 1 of 1 59