WILLMAR -- The Willmar Municipal Utilities Commission has approved a resolution of support for the proposed Big Stone II power plant and transmission line project.
Willmar has signed up to buy from 5 to 10 megawatts of electricity from the 630-megawatt, coal-fired plant, which seven utility companies and agencies are planning to construct next to the smaller Big Stone I plant near Big Stone City, S.D.
The resolution will be submitted to an administrative law judge who's gathering information during hearings in western Minnesota this week on the certificate of need and route permit for the power plant's two new transmission lines.
Although the generating plant is in South Dakota, much of the transmission will be located in Minnesota, according to power plant proponents.
Willmar Municipal Utilities General Manager Mike Nitchals said Missouri River Energy Services of Sioux Falls, S.D., asked the local commission to consider approving the resolution. He said the resolution would be entered into the record of the hearings.
ADVERTISEMENT
Missouri River Energy Services is one of seven partners in the Big Stone II project. Willmar is an associate member of Missouri River Energy Services and is studying the possibility of asking the agency to manage more of Willmar's power supply purchases.
The resolution asks state legislators and regulators to support the project, based on meeting the city's and region's baseload energy needs, environmental considerations, the potential for future resource development created by additional transmission capacity, and cost stability and system reliability.
In other business Tuesday, the commission renewed the three-year intergovernmental transfer agreement with the city for the years 2007, 2008 and 2009. Utility representatives and city officials met Friday to discuss the agreement, which was due to expire at the end of this year. Under the agreement, the utilities annually transfers to the city an amount of money equal to 4.80 percent of the utilities' audited net worth. The agreement states the annual increase is not to exceed 4 percent.
Nitchals said the payment is a revenue source for the city, which if not paid would have to be made up by local property taxes. He compared the payment to a return on investment to the city.
The 2005 payment totaled $1,612,300. Since the transfer payments began in 1980, the city has received $21,071,947.
From 1980 to 1987, the amounts were negotiated by the city and the utilities. Since 1988, both sides agreed to base the formula on a percentage of net worth. The percentage has decreased over the years from a high of 5.25 percent in 1988 to 4.80 percent, which was established for the 2003 payment and which continues today, according to a payment history.
In 1982, the utilities assumed responsibility of street lighting in exchange for a $220,000 reduction in the transfer.
Since that time, the utilities has operated and maintained the lights at parks, parking lots and city streets, and the exterior lights at the Public Works Garage and airport at no charge to the city.
ADVERTISEMENT
The value of this service for 2005 was estimated at $426,000 by consultants R.W. Beck in the electric cost-of-service and rate study.
In his report, Nitchals said Menards is participating in the "Change A Light, Change the World'' energy conservation campaign, in which utility customers receive a rebate for buying compact florescent light bulbs.
