November 22, 2023 at 10:37 a.m.

Water & Light meets final time


By DENISE MARTIN | Comments: 0 | Leave a comment
News

North Branch Water & Light has ridden off into the sunset with its final utility commission meeting November 15 in the rearview mirror.  

The utility commission was approved to be abolished under a vote by North Branch residents Nov. 7 as required under state law.  

Water operations now are under the municipal public works division, with Shawn Williams, Public Works Director assuming utility functions management.  

The electric distribution assets were sold almost one year ago for $5.3 million to East Central Energy, a longtime power cooperative in Minnesota. 

North Branch Water & Light utility commission oversaw staffing, delivery, budgeting, meeting regulatory standards and projects for the North Branch municipal electric and water systems for over 80 years.  The water operations were authorized to be provided in 1922.  Electric distribution (later generators were added) services were authorized in 1940.  

North Branch was connected to the grid power source Southern MN Municipal Power Agency SMMPA, which has about 18 members.  ECE is provided power through Great River Energy.

The utility commission of five members expanded from three, under state authority but was winding down at about the same pace as the operations themselves the last few years.  And, rarely did all five members attend.

Some unfinished business remains that will go to city elected officials.

The commission had started to investigate electric vehicle charging stations, which are attractive at this time through a national financing effort and because North Branch is ideally situated on a route where the state wants to see charging stations positioned along (I-35.) There is a program that asks for locations for stations to be submitted for consideration by the end of December and the projects would only need about a 25 percent local contribution.

A four station “fast-charging’ station can run $470,000, the utility commission was advised.

The five commissioners however, told Williams last week to bring the charging station concept to city council.  The utility commission didn’t have sufficient information now to make any recommendations, they agreed.

The final piece of pending business  was awarding the Highway 95 water main replacement project, from Second to 12th.

Bituminous Roadways at $3,089,821 was the recommended bid of five received. The cost was pencilled into the Capital Improvement Plan for $1.5 million and commissioners expressed dismay as the bids came in $3 million and above.

Williams said,  “I get it, it’s a big project” and that even the low bid is “sticker shock.”  He added the commissioners need to understand the CIP is very preliminary and for planning purposes only.  Williams noted all five companies were clumped together closely in their bids.

The Bituminous Roadways bid was awarded 4-1, with James Baxter abstaining because he works for the company at times.

There was a financial update from the city finance director that shows the water and light (peak demand generators still on SMMPA) are clearing $112,000 for the months since February.  Sharon Wright explained she backed out the ECE purchase proceeds that were entered the first part of 2023 as revenues and this is what she comes up with.

Overall, the commissioners were told by Williams the city is prepared to takeover. “Staff will continue to look for efficiencies...the guys are enthused, I like how it’s going,” he stressed.


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