4.7 SR 12-16-2024City of
Elk -
River
To
City Council
Meeting Date
December 16, 2024
Request for Action
Item Number
4.7
Prepared By
Cal Portner, City Administrator
Item Description Reviewed by
Resolution 24-77 Approving an Amendment to the Cal Portner
Minnesota Municipal Power Association Agency Tina Allard
Action Requested
Adopt, by motion, Resolution 24-77 approving an amendment to the agreement with the Minnesota Municipal
Power Agency.
Background/Discussion
The Minnesota Municipal Power Agency (MPPA) Board of Directors has recommended an amendment to
their agency agreement with regard to weighted voting for the approval of new members and the issuance of
debt.
Currently, members who have MMPA-invested capital transmission and distribution service get voting -weight
credit for that power they do not provide. The amendment would only allow weighted votes for the
megawatt -hours that agency purchases from MPPA each year.
Financial Impact
No financial impact.
Mission/Policy/Goal
Elk River Mission Statement
Attachments
1. 2024-1 1 - 5.13 - Amendment to MMPA Agency Agreement
2. 2024-1 1 - 5.13a - MMPA Member Voting Totals, 2024
3. 2024-1 1 - 5.13b - MMPA Resolution 2024-01 (Amending Agency Agreement - Weighted Voting Totals)
4. Resolution No. 24-13 - ERMU Resolution No. 24-13 Approving Amendment to MMPA Agency
Agreement
5. RESOLUTION 2024 MMPA Agency Agreement
The Elk River Vision
A avelcoming community with revolutionary and spirited resourcefulness, exceptional service, and community p p W E R E U A Y
engagement that encourages and inspires prosperity
273
��i
Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO:
FROM:
ERMU Commission
Mark Hanson — General Manager
MEETING DATE:
AGENDA ITEM NUMBER:
November 12, 2024
5.13
SUBJECT:
Amendment to Minnesota Municipal Power Agency Agreement
ACTION REQUESTED:
Approve ERMU Resolution 24-13 Amending the MMPA Agency Agreement
BACKGROUND:
Minnesota Municipal Power Agency (MMPA) is requesting approval of the attached agency
amendment regarding weighted voting to their power sales agreement with ERMU.
Weighted voting totals are used for specific actions of the MMPA Representatives, such as
approving new members and approving the issuance of debt. Currently, each MMPA member
gets one weighted vote, plus another vote for every 5,000 Megawatt -hours (MWh) it purchases
from MMPA in a year. The current weighted voting totals for 2024 are attached for reference.
DISCUSSION:
The MMPA Board of Directors identified an issue with the current weighted voting definition. A
member could receive a disproportionate number of votes from sales to a large customer if
MMPA invested capital to provide transmission and distribution service to the customer, rather
than the member.
MMPA's Representatives approved an amendment to MMPA's Agency Agreement changing
how weighted votes are calculated. The amendment would exclude Megawatt -hours delivered
to a customer when MMPA has made the investment in transformation or other facilities to
directly serve the customer, rather than the member.
NEXT STEPS:
MMPA's Agency Agreement requires approval by two thirds of members' governing bodies.
This means that approval is needed by the Elk River City Council in addition to the ERMU
Commission. ERMU staff will work with city staff to facilitate the council approval process.
ATTACHMENTS:
• MMPA Member Voting Totals, 2024
• MMPA Resolution 2024-01 (Amending Agency Agreement —Weighted Voting Totals)
• ERMU Resolution 24-13 Amendment to MMPA Agency Agreement
Page 1 of 1
Page 80 of 273
Anoka
Arlington
Brownton
Buffalo
Chaska
East Grand Forks
Elk River
Le Sueur
North St. Paul
Olivia
Shakopee
Winthrop
Total
MMPA Member Voting Totals - 2024
Source: Agency Agreement, MMPA
2023
MWh
Purchases
Allocation of Votes to Members
%
Allocation
I of Votes
One
Vote
Additional
I Votes
I Subtotal
Weighted
I Vote
(1) (2) (3)
274,011
1
54
55
55
14.03 %
22,036
1
4
5
5
1.28%
4,994
1
0
1
1
0.26%
126,652
1
25
26
26
6.63%
422,930
1
84
85
85
21.68%
89,355
1
17
18
18
4.59%
341,682
1
68
69
69
17.60%
89,251
1
17
18
18
4.59%
75,181
1
15
16
16
4.08%
6,698
1
1
2
2
0.51 %
461,469
1
92
93
93
23.72%
16,675
1
3
4
4
1.02 %
1,930,931
12
380
392
392
100.00%
(1) Each Member is allocated one vote.
(2) Each Member is allocated "one additional vote for each full
5,000 megawatt hours of electric energy purchased from the
Agency by the Member during such Member's most recent
fiscal year".
(3) If votes allocated to any Member pursuant to clauses (1) and (2) of
Member Agreement "would equal or exceed the total number of
votes allocated to all other Members, its allocation of votes shall
be reduced to one vote less than those allocated to all other Members".
APPROVED BY BOARD OF DIRECTORS
SECRETARY
Mark Hanson
DATE: Z 0.2
Page 81 of 273
MINNESOTA MUNICIPAL POWER AGENCY (THE "AGENCY")
RESOLUTION 2024-01 OF THE REPRESENTATIVES OF THE AGENCY
WHEREAS, the Board of Directors has recommended an amendment to the
Agency Agreement, and
WHEREAS, The Representatives of the Agency have discussed and studied the
proposed amendment to the Agency Agreement and are collectively of the
opinion that the proposed change to the Agency Agreement is necessary and
appropriate and will facilitate the goal of the Agency to provide economic and
reliable power to its members; and
WHEREAS, in accordance with Section 9(L) of the Agency Agreement (i) at least
two-thirds of the Representatives of the Agency, each casting one vote and (ii) at
least two-thirds of the total number of votes capable of being cast by all
Representatives in accordance with the currently effective weighted voting
formula approve the following amendment.
NOW THEREFORE BE IT RESOLVED by the Representatives of the Minnesota
Municipal Power Agency:
1. That the Agency Agreement be amended by changing Section 9(C) to read
as follows:
9(C) Voting. Except as otherwise expressly provided in this Agency
Agreement, each action at any meeting of the Representatives
shall be taken by a majority of the votes cast on the question by the
Representatives present, each exercising a number of votes
allocated to the Member he or she represents as follows (referred
to herein as a "weighted vote"):
(1) one vote; plus
(2) one additional vote for each full 5,000 megawatt hours of
electric energy purchased from the Agency by the
Member during such Member's most recent fiscal year.
Any electric energy purchased from the Agency during
the Member's most recent fiscal year to serve a customer
where the Agency (a) has invested in transformation or
other facilities to serve said customer and (b) is providing
electric power and energy to the Member to serve the
customer pursuant to a special rate structure (such as a
transmission transformed contract) shall be excluded
from the additional vote calculation in the preceding
sentence; plus
Page 82 of 273
(3) if the votes allocated to any Member pursuant to clauses
(1); and (2) would equal or exceed the total number of
votes allocated to all other Members, its allocation of
votes shall be reduced to one vote less than those
allocated to all other Members.
The allocation of votes to each member shall be made in
accordance with the formula outlined above as soon as practicable
after the beginning of each Fiscal Year. The allocation shall be
made by the Secretary of the Municipal Power Agency based upon
rfifiGate of the Commission or Representative of the Membar
the Municipal Power Agency's billing files, and such allocation shall
be verified by the Board of Directors. Each such allocation shall
remain effective until such time as a new allocation is made for the
next Fiscal Year.
2. That each Member be provided with a proposed resolution of approval and
concurrence to be adopted by the Member's City Council and (as appropriate)
Utility Commission.
3. That this resolution, together with the concurring resolutions of City Councils
and Utility Commissions of Members, be filed with the Secretary of State of
the State of Minnesota.
FOR ADOPTION: / 1 j / 0 C L
,4Ac4- / �Hfr"1Io CSC ci/ f 5� lSr'`rY/1 �L� L)F I� v� lR J�1���� JVWkp�C{/ W�n'lMraD
AGAINST ADOPTION:
Adopted and passed this 22nd day of October, 2024.
A4-1 �4
Chairman
ATTEST:
Secretary
2
Page 83 of 273
RESOLUTION NO. 24-13
BOARD OF COMMISSIONERS
ELK RIVER MUNICIPAL UTILITIES
A RESOLUTION APPROVING AMENDMENT TO MMPA AGENCY AGREEMENT
WHEREAS, Elk River Municipal Utilities is a member of the Minnesota Municipal Power Agency
("MMPA"); and
WHEREAS, that relationship is defined by the MMPA Agency Agreement dated May 28, 2013;
and
WHEREAS, the Board of Directors has identified an issue with the current weighted voting
system; and
WHEREAS, on October 22, 2024, the Board of Directors approved Resolution 2024-01 to amend
section 9(c) of the Agency Agreement ("Amendment Resolution"); and
WHEREAS, in order for the amendment to be effective, each member's City Council and
controlling Utility Commission must also approve the amendment.
WHEREAS, ERMU wishes to approve and concur with amendment on voting and the Amendment
Resolution.
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE BOARD OF COMMISSIONERS OF ELK RIVER
MUNICIPAL UTILITIES, BASED UPON THE FOREGOING RECITALS INCORPORATED HEREIN, AS
FOLLOWS:
1. The Commission approves and concurs with the Amendment Resolution and its proposed
amendment to Section 9(c) of the Agency Agreement.
This Resolution Passed and Adopted this 12th day of November, 2024.
AnDietz, air
Mark Hanson, General Manager
233287v1
Page 84 of 273
City of
El*.=:
Rver
City of Elk River
City Council
Resolution 24-77
A Resolution of the City Council of the City of Elk River Approving an
Amendment to the MMPA Agency Agreement
WHEREAS, Elk River Municipal Utilities is a member of the Minnesota Municipal
Power Agency ("MMPA"); and
WHEREAS, that relationship is defined by the MMPA Agency Agreement dated May 28,
2013; and
WHEREAS, the Board of Directors has identified an issue with the current weighted
voting system; and
WHEREAS, on October 22, 2024, the Board of Directors approved Resolution 2024-01
to amend section 9(c) of the Agency Agreement ("Amendment Resolution"); and
WHEREAS, in order for the amendment to be effective, each member's City Council and
controlling Utility Commission must also approve the amendment; and
WHEREAS, Elk River Municipal Utilities approved and concurred with the amendment
on voting and the amendment resolution on November 12, 2024.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk
River, Minnesota, as follows: approves and concurs with the Amendment Resolution and its
proposed amendment to Section 9(c) of the Agency Agreement.
Passed and adopted this 16"' day of December 2024.
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk
POWERED R1
NA UR
Page 85 of 273