03-12-2024 ERMU MIN SPECIALELK RIVER MUNICIPAL UTILITIES
SPECIAL MEETING OF THE UTILITIES COMMISSION
HELD AT THE UPPERTOWN CONFERENCE ROOM
March 12, 2024
Members Present: Chair John Dietz, Vice Chair Mary Stewart, and Commissioners
Paul Bell, Matt Westgaard, and Nick Zerwas
ERMU Staff Present: Mark Hanson, General Manager
Sara Youngs, Administrations Director
Tom Geiser, Operations Director
Tony Mauren, Governance & Communications Manager
Jenny Foss, Communications & Administrative
Coordinator
Others Present Tanju Gulati, Director with Frontier Energy; Doug
Eli, Energy Engineer with Frontier Energy;
Alexandra Blair, Program Coordinator with
Frontier Energy
1.0 CALL MEETING TO ORDER
The special meeting of the Utilities Commission was called to order at 2:30 p.m. by Chair
Dietz.
2.0 BUSINESS ACTION
2.1 Conservation Improvement Proeram Presentation— Frontier Energy
Ms. Youngs presented representatives from Frontier Energy, Tanuj Gulati, Doug Eli, and
Alexandra Blair to educate the Commission on the services they will be providing to ERMU's
Conservation Improvement Program (CIP) as well as the Utilities' program results over the
previous seven years.
Mr. Eli provided an overview of the Energy Conservation and Optimization Act and how it
affects ERMU.
While reviewing the chart for low-income spending in Frontier's presentation, Ms. Youngs
explained that a large portion of that spending is from collaborative efforts with the Tri-
County Action Plan.
Chair Dietz asked how commercial customers are made aware of the rebate programs
available to them.
Ms. Youngs explained that ERMU is communicating to commercial customers that rebates
are available. She explained that staff is working with Frontier to reach out to larger users to
Elk River Municipal Utilities Commission Special Meeting Minutes
March 12, 2024
Page 1
make them aware that they are providing services and that their staff is available to help
them find ways to receive rebates and reduce usage. Ms. Youngs continued that the goal is
to work with the City's community development staff to engage with developers early in
their projects on conservation opportunities.
Commissioner Bell noted that schools tend to be large energy users and recommended
working with those customers as well.
Mr. Gulati explained that Frontier has a department dedicated to providing services to
schools.
Ms. Youngs shared that Frontier also works with CenterPoint Energy and Wright Hennepin
Cooperative Electric and has achieved good results with them.
Chair Dietz asked about the consequences for failing to meet mandated energy savings and
low-income spending.
Mr. Eli explained that the levels are based on a three-year average, adding that if the
Utilities were to miss the criteria one year it could exceed them the next year and avoid any
issues.
Chair Dietz asked for examples of penalties for missing the criteria.
Mr. Eli explained that penalties are more common for investor -owned utilities while
municipal utilities may face challenges in expanding service in the future. There was
discussion.
Mr. Hanson clarified that Frontier Energy fields commercial inquiries on rebates and
provides experience and expertise to serve as a resource.
Commissioner Stewart requested that staff provide progress updates on the CIP a few times
a year.
There was discussion about common conservation issues Frontier has seen in the field.
Commissioner Westgaard advised that many business owners don't understand the
opportunities that are available, and that ERMU and Frontier should be working with City
staff during the design of projects to make them aware. He added that he had questions as
to whether the facilities designers are considering conservation options when creating
plans. There was discussion.
Commissioner Zerwas shared his impression that it makes a lot of sense to enlist the help of
experts like Frontier.
Elk River Municipal Utilities Commission Special Meeting Minutes
March 12, 2024
Page 2
Commissioner Zerwas recommended that staff keep track of the businesses that decline
services from Frontier initially to contact them again at a later date.
Commissioner Bell asked how staff would be tracking the available rebate dollars.
Ms. Youngs explained that rebate dollars are always available as setting that budget is a
business decision. Ms. Youngs expanded that the rebates have to remain with the $654,000
budget but she could request additional funds from the Commission if they were needed.
There was discussion about establishing a regular update to the commission on the results
of the program around the time of the annual filing on June 1.
Mr. Gulati explained that Ms. Youngs will have constant access to the savings and spending
levels through Frontier's portal site.
Ms. Youngs described the updates to the residential rebate forms. There was discussion.
3.0 ADJOURNMENT
Moved by Commissioner Bell and seconded by Commissioner Zerwas to adjourn the
special meeting of the Elk River Municipal Utilities Commission at 3:16 p.m. Motion
carried ".
Minutes prepared by Tony Mauren.
� - - % �q4'
�JorJi t MU ommission Chair
Tina Allard, City Clerk
Elk River Municipal Utilities Commission Special Meeting Minutes
March 12, 2024
Page 3