ERMUSR MISC 08-14-2007//
Elk River -=~
Municipal Utilities
13069 Orono Parkway • P.O. Box 430
Elk River, MN 55330-0430
August 8, 2007
To: Elk River Municipal Utilities Commission
Jerry Takle
Jerry Gumphrey
Jim Tralle
From: Bryan Adams
Subject: Miscellaneous Issues
Phone: 763.441.2020
Fax: 763.441.8099
Enclosed is the packet for Tuesday, August 14, 2007 commission meeting at 4:00 p.m.
The July hot and dry weather increased electric and water usage as expected. Our electric
system. peak exceeded 50 MW for the first time. Water production and peak day pumpage for
July is down slightly from last year which is good. To date, KWH purchased and water pumped
is up 8.8% and 8.1 % respectively.
There has been a surprising number of adjoining city municipal wells that have gone dry. Our
Well #3 pumping level is within approximately 10 feet of the pump level. Next week a well
contractor will be on site to lower the pump 20 feet at a cost of $6,000. This is cheap insurance
to keep this well operational.
Attached is a meeting notice from Minnesota Department of Health for August 16, 2007
concerning water quality and quantity issues in the northwest metro. Your staff will be
attending.
Last month we discussed adding two more engines at the landfill. Apparently Tiller Corp. who
owns the land directly south of the landfill which the landfill needs to purchase to expand,
realized the landfill was making other arrangements because an acceptable purchase could not be
achieved. Tiller Corp. and Elk River Landfill are now very close to agreeing on a purchase price
which means we can construct another four engine (3.2 MW) plant with expansion capabilities to
eight engines instead of a two engine plant. Modification of the air emission permit will still be
the big issue.
Jerry Gumphrey asked staff to get a water conservation article in our local paper. Attached are
the following two articles.
a) "The Connector", from July 11, 2007 Star News edition.
b) "Wasting Water Will Be A Future Problem", from July 25, 2007 Star News edition.
Other articles that are attached for your reading enjoyment are as follows.
1) July 16, 2007 Star Tribune article, "Garbage In, Profit Out", highlighting our LFG
project.
2) July 24, 2007 Star Tribune article, "A Less Charged Debate" addressing the proposed
transmission system expansion.
3) "CAPX 2020 Briefing Book of Talking Points", by the CAPX Initiative.
APPA is sponsoring a course titled "Constructing, Operating and Maintaining Underground
Distribution Systems" in Seattle, Washington on September 17-20, 2007. due to the large
percentage of underground we have in our system and the challenges we are facing, this class
offers a good opportunity to learn the latest trends and design techniques in underground
distribution systems. Troy and I will be attending this course unless this commission desires
otherwise.
Page 1 of 1
Dave Berg
From: "Karla Peterson" <Karla.Peterson@state.mn.us>
To: <dberg ct/Dnsatel.net>
Sent: Tuesday, August 07, 2007 3:30 PM
Attach: ra_nw metro agenda_final.doc
Subject: Fwd: Drinking Water in NW Metro Area: Radium, LimitedGroundwaterAvai1ability, and Surface
Water Options
»> Karla Peterson 8/2/2007 5:53 AM »>
** Please forward this invitation to city council members, staff, and engineers. **
You are invited to attend an information meeting for public officials where you can find out more about
radium, limited ground water availabilty, and surface water options in the northwest metro area.
Thursday, August 16, 7-9pm
Maple Grove Goverment Center/Public Safety Facility
The northwest metro area has unique water quality and quantity issues that are becoming more
significant as water demands increase. The Minnesota Department of Health, Department of Natural
Resources, Metropolitan Council, and Minnesota Geological Survey will be at the meeting to present
information and answer your questions.
If you have any questions or need more information, please contact me at 651 /201-4679.
See attached agenda.
Karla R. Peterson, P.E.
Compliance Engineer
Minnesota Department of Health
625 North Robert Street
St. Paul, Minnesota 55155-2538
651 /201-4679 phone
651 /201-4701 fax
8/8/2007
Drinking Water in NW Metra Area:
Radium, Limited Groundwater Availability, and Surface Water Options
Information Meeting for Public Officials
Sponsored by
Minnesota Department of Health
Minnesota Department of Natural Resources
Metropolitan Council
In cooperation with Minnesota Geological Survey
August 16, 2007
7-9 pm
Maple Grove Government Center/Public Safety Facility
AGENDA
7:00-7:10 Welcome and Introductions
7:10-7:30 Drinking Water in NW Metro Area -Karla Peterson, MDH
• overview
7:30-8:10 Mt. Simon (MS) and Franconia-Ironton-Galesville (FIG) Aquifers
-Bob Tipping, MGS, and Laurel Reeves, DNR
• use restrictions
• interference and limited quantities
8:10-8:30 Surface Water Option -Brian Olson, City of Ramsey
• treatment costs and potential access
8:30-9:00 Discussion of Possible Further Work -Chris Elvrum, Met Council
• future working group and facilitator
T ~~
~.,.i.
Odd-even sprinklingban
now in effect in Elk River
A sprinkling ban is now in effect in
Elk River. It is important to follow the
sprinkling requirements. If we can
keep our water use down, we don't
have to invest in as many expensive
wells, pumps' and water towers, and
that helps keep. a,lid on rates.
How does the sprinkling ban
work?
•It's easy! Odd-numbered homes
may sprinkle only on odd-numbered
days and only before 7 0 a.m, and
after 6 p.m., including weekends.
Even-numbered homes may sprinkle
only on even days during those
same hours. Thanks for your help!
New generation needed
to meet demand for
more electricity
People are using more energy than
ever before, and all indications are
that regional energy consumptioh
will continue to rise: Conservative
estimates by the Mid Continent Area
Power Pool (MAPP), a network of
more than 40 Upper Midwestern
utilities, forecast that electric use
will increase as much as 15 percent
over the next decade.
It will take an estimated 9,300
megawatts of new generating ca-
pacity in the MAPP region by 2012
to meet this demand. New genera-
. lion scheduled to come online in the
next several years, however, falls far.
short of that goal:
bespite the need, it takes years
tc obtain regulatory approvals and
build a new power plant. In fact, the
last significant "baseload" power
plant built in this region was built in
the mid-1980s.
A utility consortium is seeking reg-
ulatory approval to build Big Stone A;
a 630-megawatt, coal-fired electric`
generation plant to be located ir1 Big
Stone, South Dakota. If Big Stone ll
is built, it will meet a small part ofthe
demand in our area.
The EIk River Municipal Utilities
Commission believes additional
resources need to be built to meet
growing electric demand in our
region. We will do what we can to
ensure a steady supply of sa#e, reli-
able electricity.
we also urge you to participate in
our energy conservation programs
such as Cycled AC and "Wait Till
Eight." These programs are an
increasingly i portent partAf our
ElkRiver -----
Municipal Ut~lxaes
electrical supply portfolio
Simple energy saving
tips Wlil SBVe electricity
.and money
Summer heat and humidity can p
a strain on your body but don't let
it put a strain on your wallet. These
easy #ips carr help save both energy
and_money.
• Set your AC thermostat to
77-78 degrhes while using fans to
circulate the air. This will conserve
electridlty without sacnflcing'com-
fort.
• Seal off sections of your house
that are not use ofiten, giving your
air conditioner less space to cool
• Closs drapes and blinds on
the sunny side, as unnecessary sun
light only makes your air conditioner
work harder.
• Enjoy. the weather and cook
outside on the grill. Avoiding use of
an oven wilt help, keep your kitchen
cool:
• Check your air conditioner's
filter and replace it if it's dirty. This
takes just a minute and can signifi-
cantly reduce energy usage.
• Turn off lights when not in use.
They use electricity and`produce
excess heat. Compact fluorescent
lamps may cost more`to buy but
they produce less heat. and use
only 1 /4 as much electricity, saving
money in`the long run,
• "Curn off your computer ~
monitor when not in use. Or, plug
electronics into a surge protec-
for and turn it off when not in use.
Electricity used by "turned ofP' home
electronics is estimated Bost Ameri-i
cans $1 billion annually.
•Wheh planting trees or shrubs,
try fio locate them on the sunny side
of The house; as this will provide
natural shade and keep your house
cool
While there are other ways to lowe
your horrre's er~rgy usage, these
suggestfohs offer energy bill say-
ings at little cost and no significant
change in personal habits.
with a cost, More power plants
burning more fuel are needed to
meet the electric demand: That
means higher costs and a greater
impact on the environment.
ut Electric peaks usually occur during
the late afternoon or Barry evening
hours during the hot summer days.
Elk River regularly sets new elec-
trill peak demand records. Electric
peaks mean tight electr~ supply:
Tight supply means higher prices.
You can help us reduce' demand
and control costs. Elk Fiver Muni~i-
pal Utilities has a volutltary effort to
con#rol peak demar3d. Vt~e ca:l rt °Jial
Up Five At Five" and' "Wait Til Eight."
The effort targets air conditioners,
but the idea applies to all electric
_ appliances. If you get inuolved, we
can successfully centtnl ~urcests
and your rates.
We used two names to identify the
program because we have drffer-
ent types of customers, Some run
air conditioners continuously. during
thesummer. We askthg5e folks to
turn up them therrnvstat at ieastfrve-
degrees from 5 p:m. to.8 p.m; on
weekdays when the temperature
point exceeds 90 degree$ and/or '
fhe dew point exceeds 70, This will
reduce air conditioning demand at
critical times.
Some folks only run air condition-
ers when they come home from
work. We're asking you to leave the
' unit off until 8 p.m, on those hot
days. That will also reduce peak de-
m~nd at critical times, and still cool
your home prior to bedtime.
While you can help us reduce
electric demand at critical times, you
can practice wise use throughout
the year. You can refrain from using
power-gobbling devices, such as
washers, dryers and dishwashers,
from 5 to 8 p.m. Use a microwave,
or barbecue. That will help reduce
r cooling costs as well
These steps cart help everyone
in Elk River. You play an important
part in controNing gour rates, we can
better control our wholesale power
bill, and allow our wholesale power
Simple changes at home supplier to use existing power plants
Will SBVe. US 8il @nergy more efficiently!
"
'
"
and money Dial up Fire At 1=~e and
W
ait
"
Elk River continues to be one of Till Eight
are voluntary. There is no
the fastest growing cities in Min- special rate, just savings to you for II
helping hold our costs down.
nesota. Growth means increased
electric usage. EIk River Municipal Thanks for helping ps control our
Utilities is expanding to meet ttie electric use and costs.
growing demand,. but growth comes
13069 Orono Parkway, Elk River,. MN 55330
63 441 2020
Wasting water will be a future problem
^ More than double
the amount of water is
used in the summer,
mostly for lawns, which
could mean future
water shoratges
by Elizabeth Cook
Staff writer
While many might think
water is a never-ending,
free flowing resource, the
truth is, it's not.
Bryan Adams, the gener-
al manager for Elk River
Municipal Utilities, said
since water usage is at an
all time high, the risk for
further depletion of the
resource is becoming a real
danger:
The average person `uses
65 gallons of water per day
in order to carry out their
domestic needs like sh
ering, washing clothes
the ground, Adams said.
In Elk River, the water
comes from Mt. Simon-
Hinckley and has seven
wells dug into it, soon to be
eight.
It's the amount of water
usage that dictates how
many wells and what the
cost will be of water, Adams
said.
People commonly think
that something like water-
ing the lawn shouldn't be
a problem since the water
is just going back into the
ground, but it's not true
because the wells are dug
and Water to page 8 the sprinkling season.
ow- The above graph shows the spike in water use during
mater: Perceptiar~ t~lat water is free, urlirnited resource warrisame
:;00 to -!QO frt~t into tlm
sfrrrurxi. ~~dnms raid. '1'}ri:
means it takr~s apprrxi-
nuafcly 70,000 ycar.~ Iirr tha
water used in a sprinkler to
~*et bacl: to
~whr~re it
can ii E'
humped
,' -
out, for
u.,e. ~ ~.
h: ~~ e n
vvlren it
rains, it
talZrs ,lust
"s l""g t"O Bryan Adams
rr•l>lenish
1"h c+ supply.
:`\h'e're taking vaater out of
the round quicker tht3n it's
br~in,t; re}rlenished," he said.
IC this keeps Irappe-ning,
th<a ncht generation ~i~ill see
water shortage=,.
"~'vre .u ~er r't d o i n g' t he future
gener;,tions an}~ favors by
the ~a~:ry we cunrutne water,"
he said.
keen though overusing
is a prohlern nmv, there's
., simple solution: `I'rcat
water as a resource and
dnn't waste it.
"1 think the perception is
that waters fi-ce " Adams
acid "Jt.'s ncf an indafi-
nitc :uurce rand water ien'L
free."
1'eruhle are encouraged
to he cautions w~lx~n using
tnttumatic timed sprinklers
because these will run even
whet] ltti ratmng, K`171 I'll 1J
:r waste.
C~csidents arr. en~uur<?~ed
to nut over' water the 1, rase
water belirre l0 a.ru or alter
6 p.m. and nxrw the lawn at
the hiKhest settin[;.
Tips to decrease
wrater usage:
In the bathroom -
1) Check the toilet 1cr leeks
Puf v 1i111e toad colGi~ng un ihn
`We aren't doing future generations any
favors by the way we consume water.'
- Bryan Adams, general manager, Elk River Municipal Utilities
washing dishes, Adams
said.
This domestic use ends up
being about 1.5 million gal-
lons of water a day for the
entire city of Elk River.
But in the summer, when
people are trying to keep
their lawns fresh and green
with sprinklers, the usage
goes up to about 7 mil-
lion gallons per day. That's
5.5 million gallons beyond
domestic usage, he said.
Now water isn't this never-
ending supply that comes
from nowhere, instead it
comes from wells that are
dug from an aquifer, which
is sandstone underneath
tank and if olGring k cgins
to appaar m ire bowl it has
r~ IP_dk
2) Don"t use the toil t as
a trash bin c,r asi~rfray E«.y
firr,r it's flushed, i1 uses five to
seven gallons of water.
3j Put water-filled plastic boi-
?les with 2 mch~s of pct b!cs
aside the batlLs in the 1oC~ei
tanR.7hrs will c~.r down on the
rnnount of wafer waste.
4~ Take Shorter showed,
Ind if all pos. ble take baths
aisiecd A both in a parfic~l!y
f Ilea tub uses ~e "s wata~ than
all but the shortest sh; wets
b) Install water-saving sh~"•w-
er h@adS 0! fOW frSiliC10(S.
7) Turn off the wafer while
brushing teeth.
8) Rinse a rcuoi in the sink
by filling the bottom with
a few ruches of water and
leaning it in there.
9) Check fan ~ets for leaks
In the kitchen and with
laundry -
1) Ilse c~,ttontatic dishwash-
er and washing mocFrinr
only for frail loads.
2) WY~cn washing dishes by
Y;and, don't leave the water
running. E!iher fill one sink
with soapy water and the
other vdah water to rinse, or if
there s only one sink, use that
for soapy wrter and Ihen
f,lace c II dishes in a rack
~ r d either arse them with a
"pray dF~i~e ur panful of hot
wa to r
4) Don'I let the faucet run
while washing vegetables
Outside -
1)Water the lawn only wr~~en
it's Herded and make sure icy
deep-soak i1
2j Don"f wah;r the gutter or
paved areas
3) PIan1 dreg ght reslstanf
Tres anU plants.
4) Put a layer of mulch
around Trees and pl~n.fs (his
will slaw evaporation of mois-
ture and discourage wi~ea
growth toy.
5) U;e a b~oam to clean
1hr~ drlves~ay a!rd sidewalk,
n0? Walef
6) Dnn~t run ih~~ hose the
whole time while washing the
car, onry use ~t to wash the
Soap Gil
7) Tell children not t~ play
with the hose and ,pri~kier;
8) Install a drip irngation sys-
tem for shrubs. hang!ng bas-
kets. flower and vegetable
gardens. These Systems use
50 pc;rcent IP,sS vvptG'r than
conventional sprinklers"
9j Group plants wi1P? similar
watering needs together.
This tank helps in the process of getting from the aquifer, it goes to plants in Elk
water. After water is pumped out of wells River to be treated for domestic use.
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PhotosbyGLENSTUBBE•-gstubbe@startribiute.com
Fifty methane wells scattered around the Ells River Sanitary Landfill provide enough fuel to power four 800-kilowatt generators that supply 2,300 E1kRiver Homes
with electricity, l5 percent of the city's needs. Waste Management Inc. is buildurg a similar renewable energy project at the Spruce Ridge landfill irl McLeod County.
• The waste-to-energy process is a long one at landfills, but Waste Management sees value in converting its
sites into methane producers. Elk River already benefits from the power, and within a year so will Glencoe.
..TSYE-•'id.911iA'Mt;.-.•~-T~L-~-.r,-•i••.i'7~~"rTA
fiy MIKE 1'vtEYF'1.5 • rneycrs(a)s[artribune.corn
ext year, when the lights go on in
lencoe, residents can thank or-
ange peels, rotten broccoli and left-
over lasagna that was thrown out years ago
for some of the electricity that keeps their
houses glowing.
Waste Management Inc., heedirig the
proverb that one person's trash is another
person's treasure, is spending $3.5 million to
eke holes and run pipes to help the Spruce
_.idge landfill expel gases that soon will run
three electrical generators.
The project is part of a x350 million in-
vestment to be made by Waste Management
over the next five ye~rrs to turn GO landfills
across the country into sites for creating re-
newableenergy.
"We need to get the highest value out of
that land. Part of that is using it as an energy
resource," said Paul Pabor, vice president of
renewable energy at Houston-based Waste
Management.
When the Spruce Ridge transformation
is complete next year, fire methane burp-
ing from years of discarded garba;e will
provide enough electricity to power 2,400
homes. 'The electricity will be sold to cus-
tomers of Glencoe Light and Power:
Waste Management, the nation's largest
landfill operator, begztn experimenting with
gas-to-electric generalx>rs 20 years ago.
When the cornpany completes its expan-
sion into that busing>s five ;-ears from now,
it will produce enough electricity to power
700,000 homes, the equivalent of replacing
more thzin 8 million barrels of oil a year.
Trash coxrtsrruws on 7a4 >
r e, S_:
~~~:1~
Debra Walters, Waste Management's district manager, and Don
Yurecko, the gas plant manager, in the generator room where gases
hom the Elk River Sanitary Landfill aze converted into electrical
power.
I2S l~_°° I "' lYl iC1VE'rll`/'-1i3~ < . llllua aaa ya Va,v c ~~ ~-., wauac-a.vaawa acaaraw ~.+.a.
GARBAGE IN, POWER & PROFIT OUT
~ TRASH FRAM D1
- ---- ------ SAY T1~ in11~1`r~~
Biology, profits -and gov- '
ernment subsidies -are driv- • The plant has fo~.u SOOkW
ing the diversification of land- engine-generators.
fills from sites strictly for cast- • It can output 27 million
` .offs to providers of kilowatts. kilowatt-hours of electric-
Three to five years after ity (enough for about 15
garbage (separated from re- percent of Elk River's resi-
cylables and ordinary trash) dentialneeds).
is buried, natural microbes de- • There are more than 40
,compose the organic materi- wells collectingmethanegas.
al in the mounds of trash. The • The landfill gas generated
process releases methane gas- is 52 percent methane, 47
es that, in years past, simply percent carbon dio,dde, and
were burned to avoid pollut- 1 percent other.
ing the air.
In Elk Ridge alone, Waste
Management is sitting on 12 ty generation. T~'aste Manage-
miIlion cubic yards of decay- ment recently bought into a
ing garbage. landfill gas-to-electricity op-
Some 50 acres of the landfill oration in Burnsville and has
are dotted with wells to tap the run a similar site in Ells River
gas. and pipes that crisscross since 2002.
the site to deliver the meth- At the Elk River site, four
ane to an area where it's com- Caterpillar generators scream
pressed and filtered. behind closed doors in a cin-
After the gas has been pros- der-block building near the
essed, it becomes fuel for the landfill, which dates to the
four electrical generators. mid-1970x. Twenty-five hun-
Federaltax breaks, included dyed cubic feet of gas per rnin-
in they latest energy bill, have ute, ported from the near-
helped fuel the company's in- by landfill, keep the cylinders
terest in gas-to-electric invest- pounding.
ments. The 12 million cubic yards
The bill, passed earlier this of garbage on hand are enough
-year, for the first time offered to keep the generators turning
a tax break worth $10 for ev- for another 20 to 30 years, said
cry megawatt hour of electric- Debra Walters, Waste Manage-
. ity produced by landfill gases. ment district manager. Mean-
While less generous than the while, new truckloads of gar-
. $19-per-megawatthouroffered bage continue to show up at
to wind turbine investors, at the site.
Spruce Ridge the subsidy adds "It's a constant source of
up to an extra $200,000 a year, electricity," she said.
Pabor said. Walters might have add-
"That gave enough return ed that the owner of the sole
for our investment so we were wind turbine, looming across
able to hit our return on cap- the street from the landfill,
ital targets," he said. The tax can't say the sanze. Can aver-
.. break will add 2 or 3 percent- age, wind turbines, prisoner to
.age points to Waste Manage- changes in the breeze, produce
ment's return on capital,' he electricity about 40 percent of
added. the time.
The $2.4 million investment
in Spruce Ridge represents Mike Meyers • 612-G73-11x6
an accelerating interest in us-
ing landfill gases far electrici-,
~"~~~~~.. ~..~)D~~.~. ~sl~~ ~~~~~ ~~l E.I.
Gas extraction wells are used to collect methane gas that is
generated as the waste decorrlposes. The gas is used to produce
energy or is sent to a landfill gas disposal facility.
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c
ALESS-CHARGE
inging power to the people will involve
months of debate, years of construction and billions
of dollars as 11 utilities push for the first major
electrical transmission upgrade in a generation.
By MIKE MEYEKS • meyers~c~startribune.com
The last time new high-voltage electrical lines were strung across
Minnesota, protesters slathered state troopers with ammonia fertiliz-
er, covered themselves with pig manure, armed themselves with base-
ball bats and lined up to be arrested.
In 1978, angry residents near Lowry and Sauk Centre went so far as
to topple L5 transmission towers. The power lines were raised, despite
the objections from naysayers, including athen-obscure Carleton Col-
legeprofessor named Paul Wel.lstone.
Xcel Energy Inc. and 10 other utility companies are setting the stage
this week for what they hope will be a milder public reaction to the first
major power transmission project in Minnesota in more than 25 years.
The consortium of utilities is mailing 73,000 letters to landowners
that outline a proposal to crisscross Minnesota with about 650 Holes of
new high-voltage transmission lines. The $1.3 billion to $1.6 billion proj-
ect, set to be completed in 2014, is the first of a number of transmission
expansions that will cost billions more in the years ahead. The state will
hold hearings to vet questions and objections.
Pr continues: Opponents are expected to be calmer this time. D5 -
_. _ ,~
St. Cloud
razes -1 ..
BronUings, ~ ~ Monticello
S.r
-_ • I
FILLING IN THE GAPS
Xcel Energy will be sending letters
to about 73,000 landowners this
week outlining plans for the first
major addition ofhigh-power
transmission lines since the
197os. The map shows the area
covered by those letters, which
represents the bulk of the project.
~."`
_ ~~
~
„
~
,t
~~;,.
j;;' Proposed project
corridors
ri
35 ~
~°
~~`~
f Existing power Lines
~~
g~ with 230 kilovolts
~' or greater capacity
~y ~
°--r. ~~
~~`',`" Hampton 50 MILES
,_, ~, ~
' Rochester ,
Mazshall r ~. ~
','~- _ ~ La Crosse,
~~- ~ V11is.
s' 1
>eurce: X.cel, CapX ?_020.. Minnesota Public Utilities Commission
ALESS-CHARGED DEBATE
POWER FROM I31
George Crocker, one of the
opponents of the 1970s trans-
mission project and a critic of
the latest proposal, said he ex-
pects abig public turnout -
in formal forums, not in the
streets.
"Instead of the tension be-
ing out in the field, the tension
will be in the hearing room, in
putting the facts on the table,"
said Crocker, executive direc-
tor ofthe North American Wa-
ter Office, an environmental
group based in Lake Elmo. "I
think it's a certainty that there
won't be the response that we
had in 1978," he said, adding,
"We'll see if the system is able
to be fair."
Crocker said an alternative
plan -stringing lower-voltage
lines short distances from wind
turbines scattered across the
state -would be cheaper and
simpler to implement, a prem-
ise Xcel officials dispute.
The scope of the proposed
transmission upgrade is un-
precedented, said Laura Mc-
Carten, an Xcel executive who
is co-executive director of the
project, called CapX 2020.
"To the magnitude we're
working on these projects, it's
never happened before," she
said.
Since 1980, consumer de-
mand for electricity in the
state has doubled. In a primer
Filed on www.capx2020.com,
the utilities note that in 2006,
the average home had 26 elec-
tronic devices, from high-def-
inition TVs and DVD players
to digital cameras and cordless
phones. In 1975, a typical home
had two or fewer.
The proposed transmission
lines will add capacity to carry
4,000 to 6,000 megawatts, or
the equivalent of enough ener-
gy to power 4 million to G mil-
lionhomes. Peak demand now
is about 20,000 megawatts.
The utilities also argue that
the drive for alternative sourc-
es of energy -chiefly wind
turbines - requires more
transmission lines to move
electricity from the breezy
bluffs of rural southwest Min-
nesota to customers in urban
areas.
The companies don't ex-
pect to cross the property of
all 73,000 landowners receiv-
ing notice.
"We're designing this to be
the most open process ever for
a transmission project," Mc-
Carten said.
Any owner of land within a
dozen miles of potential routes
was notified, even though the
exact transmission paths won't
be set for months. The utilities
have held talks with public offi-
cials in more than 100 commu-
nities, in an attempt to answer
questions and allay fears.
In the 1970s, many oppo-
nents of transmission expan-
sion were stirred by thoughts
that electrical "leakage" from
high power lines hurt people
or animals - a concern an-
swered, if not put to rest, by
a number of scientific studies
that found no link between the
lines and illness.
Property rights also pro-
pelled opponents, who were
worried that the utilities could
get government to seize land
for transmission lines.
But the uti]ties note that
along a 150-mile transmission
line expansion underway in
southwest Minnesota, just
eight of 390 parcels in the path
of the lines are in condemna-
tion proceedings. " We expect
to settle six," Xcel spokeswom-
an Mary Sandok said. Land-
owners usually receive a one-
time payment in compensa-
tion for transmission line con-
struction. After the lines are
up, livestock and farm equip-
ment simply navigate around
the towers, which are 120 to
150 feet high and spaced 600 to
1,000 feet apart.
The Miiuiesota Public Util-
ities Commission will hold
hearings over the next cou-
ple of years to decide if the
CapX2020 transmission lines
are needed, and the commis-
sion must approve the pro-
posed routes. Meanwhile, the
Minnesota Department of
Commerce will seek public
comment and prepare an en-
vironmental report.
Mike Meyers • 612-673-1746
CapX 2020 briefing book of talking points July 19'h, 2007
Key messages
• A group of regional utilities foresees significant growth in customer demand for electricity
in Minnesota and neighboring states that will require new generation. Regardless of
where the new generation is located, or what the source is, the utilities' studies show
substantial new transmission will be required to support it.
• The four transmission lines proposed by the CapX 2020 utilities will help ensure
continued reliable electricity service in Minnesota and the surrounding region, where the
increasing demand for power is expected to exceed the transmission grid's capacity by
2020.
• The CapX 2020 utilities will present detailed information to the Minnesota Public Utilities
Commission in August to help regulators determine whether the first group of
transmission lines identified in the utilities' studies is needed. The filing--called a
Certificate of Need application-will initiate a rigorous regulatory process.
• The Minnesota PUC and the CapX 2020 utilities will engage the public in a broad
discussion of the need for these transmission lines and, if it's determined that they're
needed, where they should be located.
• The CapX 2020 proposed expansions will help utilities meet Minnesota's new renewable
energy standard -called one of the most aggressive in the nation -which requires 25
percent of the state's electricity to come from renewable sources by 2025.
General CapX 2020 information
• CapX 2020 is a joint initiative of 11 transmission-owning utilities in Minnesota and the
surrounding region to expand the electric transmission grid to ensure continued reliable
service to 2020 and beyond.
• The CapX 2020 projects were designed to address three categories of need:
1. Community service reliability: Each of the proposed lines addresses specific
system reliability needs for the communities served.
2. Renewables generation support: The proposed lines will help Minnesota meet
the standard requiring 25 percent of the state's electricity by 2025 to come from
renewable sources. Wind generation and development continues to outstrip
available generation and transmission capacity.
3. System-wide need: The high voltage electrical system must be upgraded and
expanded to meet load-serving needs estimated for the next several decades.
• The first group of CapX 2020 projects is made up of three proposed 345-kilovolt
transmission line projects, one 230-kV line and associated substations. Group 1
proposed projects cover approximately 700 miles and include:
- A 230-mile, 345-kV transmission line between the Brookings, SD, area and the
Southeast Twin Cities, including a 345-kV transmission line from Marshall to the
Granite Falls area
- A 250-mile, 345-kV transmission line between Fargo and the Monticello area
- A 150-mile, 345-kV transmission line between the Southeast Twin Cities and
Rochester continuing to La Crosse, WI
- A 68-mile, 230-kV transmission line between Bemidji and Grand Rapids in North
Central Minnesota
• The CapX 2020 proposals represent the largest transmission initiative in Minnesota in the
past three decades. CapX 2020 is set apart from other transmission projects by its long-
term vision for ensuring a steady supply of reliable electricity for decades to come.
While utilities in the region have a history of coordinating activities, this effort is unique in
that it's an alliance of municipals, co-ops and investor-owned utilities. It also involved
action by the Minnesota Legislature to streamline cost recovery and the permitting
process.
Demand and reliability
• Minnesota and the surrounding region are experiencing tremendous job and population
growth, leading to a steady increase in electric use at an average of one to two percent
per year.
• The last major upgrade of the electric transmission system took place more than 25 years
ago. Since that time, electricity consumption in Minnesota has doubled.
• Studies show that customer demand for electricity will increase by 4,000 to 6,000
megawatts by 2020-more than today's system can deliver. The proposed new
transmission lines will be built in phases designed to meet this growth. The lines will also
help support expanding renewable energy growth to meet the new Minnesota Renewable
Energy standard -the most aggressive in the nation.
• The CapX 2020 projects will help support the significant energy needs posed by the
state's rapidly growing ethanol and biofuel industry. Ethanol and biofuel plants need a
considerable amount of electricity for production. The plants are located in rural areas
where corn is grown, but they place stress on the electric grid, which was developed over
the years to accommodate agricultural and residential loads. Additional transmission
infrastructure will help ease this stress.
• It is understandable that the current system is nearing its capacity; we're using more
electricity -far more -than we did even a few years ago.
• Our electricity demand has risen in proportion to the growing number of electronic items
and appliances we depend on and to the increasing size of our homes. Here are some
statistics to illustrate just how much more electricity we demand today:
- Twenty-five years ago, when the fast major transmission upgrade took place,
about 30 percent of homes had central air conditioning. Today, that number has
more than doubled to nearly 70 percent of homes.
- Last year, you could find 26 consumer electronics, such as DVDs, cordless
phones and high definition televisions, in the average home. Compare that with
1975 when the average household had less than two of these items.
- Larger homes use more energy. The average single-family home in the Midwest
is almost 40 percent larger today than it was in 1976.
- Microwaves are a virtual necessity today with 90 percent of kitchens having one
in 2005 versus just 25 percent 25 years ago.
- In 2006, 50 percent of American homes had three or more TVs, a dramatic
increase over the one TV owned by 57 percent of households in 1975.
- ATV is on for an average of 8 hours and 15 minutes a day in an average U.S.
home, an hour more than 10 years ago.
- We spend $5 billion annually to power our TVs. In 2010 that number is predicted
to rise by 75 percent, meaning that customers will pay over $8 billion annually to
run their TVs.
- In less than 10 years (1998-2005), the percentage of homes with a DVD player
rose from 1 percent to more than 80 percent.
Need, routing and permitting processes
State need assessment processes
• The regulatory process for these lines is underway. The utilities will file a Certificate of
Need (CON) application in August with the Minnesota Public Utilities Commission (MN
PUC) for the three 345-kV projects.
• A separate application that combines need and routing will be filed with the MN PUC for
the Bemidji-Grand Rapids, 230-kV transmission line in late 2007.
• As part of the Certificate of Need process, the utilities will provide data concerning the
projections of electric usage to demonstrate the necessity of the proposed lines. The MN
PUC will consider this information in determining the need for the lines as well as their
characteristics, such as substations and end-points.
• The Certificate of Need will also describe the specific areas in the system that will
experience significant reliability concerns and explain how the proposals will meet those
needs.
• The Certificate of Need approval process generally takes 15 to 18 months and provides
many opportunities for public involvement, including open houses, public hearings and
other public meetings. Utilities, the MN PUC and the Department of Commerce will host
meetings to provide information and gather input.
• The utilities also will seek need determinations for each of the proposed transmission line
projects from the North Dakota, South Dakota and Wisconsin utility regulatory
commissions. We anticipate starting these processes in Spring 2008. The CapX 2020
utilities will closely coordinate the regulatory processes among the states.
Project routing
• The utilities have identified broad 'notice corridors' that extend between the general areas
proposed for the beginning and end-points of each transmission line. Actual routes for the
transmission lines and locations for any new substations have not been determined. Prior
to the Certificate of Need filing, the CapX 2020 utilities sent letters to landowners in the
study corridors notifying them of the proposals and describing how they can participate in
the process.
• While the MN PUC is assessing the need for the transmission lines, the utilities will work
with local governments, landowners, electric cooperatives and other stakeholders to start
evaluating potential routes. In addition to determinations by state regulators that the
projects are needed, each project requires regulatory approval for the specific routes for
the lines.
• In Minnesota, a route permit application must be filed with the MN PUC for each project,
proposing a recommended route and alternatives. The MN PUC makes the final decision
on routes for the lines, taking into account recommendations from all participating parties.
• Similar review, permit and approval processes are required for project lines and facilities
from the Wisconsin, North Dakota and South Dakota commissions.
Federal approval
• Permits and approvals are required from several federal agencies (U.S. Army Corps of
Engineers, U.S. Fish and Wildlife Service) before the lines can be built. Federal agencies
will prepare Environmental Impact Statements before they issue permits.
• The CapX 2020 utilities are committed to working with all interested parties during the
need and routing processes.
Projected timeline
• Summer 2007: Certificate of Need filing for the three 345-kV lines with the Minnesota
Public Utilities Commission
• Fall 2007: Informational open houses held within the study corridors to provide
information and answer questions to potentially affected residents and landowners.
• Winter 2007: Need application filed with North Dakota Public Service Commission
• Spring 2008:
- Route applications filed with the Minnesota, North Dakota and South Dakota
commissions
- Route and need application filed with Public Service Commission of Wisconsin
- Public meetings sponsored by state agencies
- State and federal Environmental Impact Statement processes begin
- Hearings on need held in Minnesota
• Fa112008:
o Minnesota and North Dakota commissions make need decisions
o Routing hearings held in states
• Winter and spring 2009: Routing decisions by commissions in states
• Summer 2009: Federal Environmental Impact Statement processes completed, federal
permits issued
• Winter 2009: Construction permits obtained
• 2009-2012: Easement negotiations with affected landowners
• 2010-2015: Transmission line construction
Affordability and cost recovery
Group 1 Projects
• The first group of projects encompasses nearly 700 miles of 345-kV and 230-kV
transmission lines with a preliminary cost estimate in 2007 dollars of $1.5 to $1.7 billion.
• Transmission costs are less than 10 percent of customers' electricity bills. A typical Xcel
Energy residential customer, for example, could see a monthly bill increase of
approximately $2.00 based on current cost estimates of the first group of CapX 2020
lines.
• Bill increases will pay for investments to ensure a reliable electric system and for access
to additional generation sources, including renewable energy.
• Also, transmission investment will enable access to competitively priced wholesale
energy supplies, which could offset the increase for transmission investment and result in
an overall lowering of a customer's bill.
Cost recovery
• Cost recovery is not directly included as part of the CON filing process, although
customer impacts are considered. (See above.)
• Customers of the CapX 2020 utilities pay for the cost of the transmission lines based on
their respective companies proportionate use of the lines
Public process
• CapX 2020 utilities are committed to communicating early and often and to working with
the public at every stage of the process.
• There are many opportunities for members of the public, local government officials and
other stakeholders to provide information to the utilities and to the MN PUC throughout
the process.
• Following are ways the public can be involved:
- Comments on the CON filing can be submitted to the MN PUC
- The MN PUC and the Department of Commerce will hold public meetings and
hearings at selected locations within the project study corridors
- CapX 2020 will hold several open houses in each of the proposed project study
corridors, featuring exhibits, Q and A sessions and experts
- CapX 2020 will set up working groups within proposed corridors made up of local
government officials, community groups and other interested parties
• Utilities will work with landowners to negotiate easement rights (ROW acquisition is not
expected to begin until 2010)
• Meeting schedules and events will be posted on www.CapX2020.com
• The Web site and 800 numbers for each of the Group 1 projects are available for
information and comments/suggestions
• Contact information for each project is:
SE Twin Cities-Rochester-La Crosse
PO Box 9347
Minneapolis MN 55440-9437
Chuck Thompson, Dairyland Power Cooperative
608-787-1432
Pam Rasmussen, Xcel Energy
800-238-7968
lacrosseinfo@CapX2020.com
Fargo-Alexandria-St. Cloud-Monticello
PO Box 9451
Minneapolis MN 55440-9451
Darrin Lahr, Xcel Energy
Jim Musso, Xcel Energy
866-876-2869
far og info(a~Ca~X2020.com
Brookings, SD-SE Twin Cities
PO Box 238
Elk River MN 55330-0238
Craig Poorker, Great River Energy
Randy Fordice, Great River Energy
866-473-2279
brookin sg info(n~Ca Xp 202.O.com
Renewables
• The CapX 2020 projects are a major step in meeting the state of Minnesota's 25 x 25
renewable energy standard
• In addition to increased electric reliability, CapX 2020 will benefit Minnesota and the
surrounding region by expanding the generation outlet for wind energy, particularly in
southern and southwestern Minnesota and the Dakotas.
• The locations of CapX 2020 proposed transmission lines capitalize on the consistent and
strong winds in southern and southwestern Minnesota, enabling the delivery of wind
energy throughout the state.
• As part of Minnesota's new renewable energy standard utilities are required to examine
in a five year action plan how to develop the transmission upgrades needed to support
the 25 x 25 mandate
• Under Minnesota's renewable energy standard CapX2020 partner Xcel Energy is
required to have 30 percent of its retail sales from renewables by 2020, with 25 percent
of the total to be from wind.
7/19/07