4.3. ERMUSR 05-12-2009
Elk River -==
Municipal Utilities
13069 Orono Parkway • P.O. Box 430
Elk River, MN 55330-0430
Apri130, 2009
To: Elk River Municipal Utilities Commission
John Dietz
Jerry Gumphrey
Daryl Thompson
From: Troy Adams
Subject: Review and Consider Wholesale Power Supply Options
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Phone: 763.441.2020
Fax: 763.441.8099
On April 15`", the Commission Chair and Utilities staff met with representatives from Central
Minnesota Municipal Power Agency (CMMPA) to review power supply opportunities through
the Big Stone II project and services available through their Agency. To address concerns on the
business risks involved with this opportunity, CMMPA has provided an option to help the
Commission and Council make an informed decision regarding this commitment. The proposed
option would be to join CMMPA as anon-voting associate member for the term of one year.
This one year contract would cost $2500/month ($30,000 total). With this associate member
status, the Utilities would be able to "piggy back" on a baseload planning study being conducted
by R.W. Beck. For the Utilities to hire R.W.Beck independently to conduct the same study
would cost at least that but most likely would cost significantly more. This study through
CMMPA would be conducted within the timeline allotted to allow for a presentation to the
Commission and Council. Staff recommends entering into this one-year associate member
contract with CMMPA which includes the R.W. Beck study and presentation.