5.3. ERMUSR 02-14-2006Elk River
Municipal U
13069 Orono Parkway
Elk River, MN 55330
February 8, 2005
To: Elk River Municipal Utilities Commission
Jerry Takle
Jim Tralle
John Dietz
From: Bryan Adams
Subject: Service Territory Acquisition
phone: 763.441.2020
Fax: 763.441.8099
The 2006 electric budget includes a $290,000 item for service territory acquisition.
Attached is our service territory map reflecting our desire to purchase area 17 with
approximately 80 customers. The cost is comprised of approximately $250,000 for the
customer base and $40,000 for the $0.035/KWH growth from previous acquisition.
Staff recommends authorization be give to proceed with area 17 acquisition.
Initially we thought the service territory agreement ended in 2008. After careful review
of our contract documents, this agreement actually expires on 2-28-2011. I apologize for
the confusion. In the late 2009 time frame, we should start renegotiating this service
territory agreement.
ities
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Elk River
Municipal Utilities
13069 Orono Parkway
Elk River, MN 55330
February 8, 2005
To: Elk River Municipal Utilities Commission
Jerry Takle
John Dietz
Jim 'Tralle
From: Bryan Adams
Subject: Substation & Data Center Update
phone: 763.441.2020
Fax: 763.491.8099
Attached is a construction schedule reflecting the status of the substation and Target
feeder projects. Also included is a substation task spread sheet. Today we are still on
schedule. On 2-21-06 the transformer at the west substation will be moved to the Otsego
Substation. The new transformers for the west substation will be shipped on 3-15-06
give or take a day. Erection of the Otsego substation steel and bus has will start shortly.
Staff has been spending much tune working on a response to a proposed second data
center. Enclosed for your review is the initial request for information and our response.
Also attached is a financial analysis for your review.
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Elk River Municipal Ut
Substation Progress ilities
-- ---- --
__
Description
Otsego - ----
Station
14 --
West
Bank 1 --
Earthwo_rk_ _ Done Need Dwg None
Gavanized Rebar
Concrete Install _____
Grounding Material
Grounding Install __
6" Ducts Material
6" Ducts Install _
F_encing _
Done
Done __
Done
Done
Done___ ___
Done
Done ___ __
Galvanizers
J_ay Lunn __ _
L&L
Okay__ ____ _
L&L __
Jay Lunn
ay Lu
J
nn
~ None
None
None
None
None_
,None
None _
__ _
_ ___
L_an_d_scaping __ ___ _
__
None ___
None
Steel Material __ _ _
Galvanizers _ __
Galvani
z
ers _ _
None __
Sub Material __
L & L _
_
__
L&L ____
None __
S_ub_Erect ___ Okat Const Okay None
T_ra_nsformer Connection
Breaker _ __
Okay Const.
S&C _ __ _ __
Okay
Areva
Okay Const
None _
Test Breaker
Utility Plus _
Utility Plus _
,None _____
_
-
Transfo_rmer ___ __
Moved fromWe
s
t -
Waukesha --
Waukesha -
Move Transformer_ _ _ _
_
Armstrong None None
Energize Transformer _
Utility PI
us
Wau
k
esha
;
Waukesha __
Contol Wiring _
_
Mike P _
_
___
GRE
Mike P ___ _
Metering GRE GRE GRE GRE to Change CT's
Metering ERMU
69 KV Switch Material
70 KV Switch Install__
Mike P
GRE ~
GRE _____
Mike P
Electro Tech
GRE _. __.
None
None
None
Relay Panel Material
None __
Electrical Power _______
None __
Relay Panel Install None GRE None
________
Bus Tie Meter ~ ______
? ____ _
None _
None __
--- -- -
Target Feeder
Cable Material ___ __ __ Ordered
Padmount Gear _
____ _
Out for Bid _____ _ ____
Road Boxes
_ ___
___ ____
Found Source ____ _ _
_
Engineering
Completed _ ______ _ ___
Install Contracts
___ __ __ Out for Bid
__
Permits DNR __
Received _ __ _
Permits MNDOT _ Submitted
Permits Railroad
_ _____
Submitted __ _ __ __
Permits Sherburne CO ____ _
Submitted _ _ _ __ ___
SubConstTaskScedule2006
UNITED HEALTH GROUP DATA CENTER FINANCIAL ANALYSIS
cosTs
SUBSTATIONS
Waco Substation $1,000,000
GRE High Side $250,000
Total $1,250,000
FEEDER ALTERNATIVES
a) Site to station 14 21,000 LF X 88' $1,850,000
b) Site to west sub 19,600 LF X 88' $1,725,000
c) Site to Waco 9,400 LF X 88' $828,000
d) West sub to 14 12,000 LF X 44' $528,000
Initial Cost
Site to Station 14 only (option a) $1,850,000
Future Cost
Add Waco sub
Feeder costs by UHG (option c) $828,000
TOTAL ERMU COSTS
$3,500,000 Bond Amount
Interest = 4.5%
Term = 10 years annual payment =
Term = 12 years annual payment =
Term = 15 years annual payment =
MARGIONAL REVENUE @ 0.01/KWH
$1,250,000
$3,100,000
$423,300
$367,300
$311,900
MW LF 40% LF 50% LF 65% LF 80%
2008 4 $140,160 $175,200 $227,760 $280,320
2009 7 $245,300 $306,600 $398,600 $496,560
2010 10 $350,400 $438,000 $569,400 $700,800
2011 12 $420,480 $525,600* $683,280 $840,960
2012 14 $490,560 $613,200 $797,160 $981,120
* My best guess