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LAKE ELMO COUNCIL MINUTES - 9/20/83 Page 5 Other events that may ,slow down project are, for example, the Metro Waste Control Commission has stated they would like to build facility at their plant, however they have not conducted feasibility research. Also, NSP said they would be interested in accepting fuel at Red Wing plant. Lake Elmo is also looking at other planning activities for site area, and by end of year this should be brought to Project Board for consideration. ® Eder - What has transpired with amount of steam 3-M is going tc buy and why wasn't this revealed to public earlier? (Wood - It was revealed; but "take or pay" contract was misunderstood, i.e., that amount they are required to take and if they don't take it they are required to pay anyway. They want to minimize their risk and put at level they know they'll buy every year (even though they'll probably purchase above that level.) • Eder - Why did they then think about producing electricity? (Wood - they'll be using maximum energy during wintertime; flunctuations will occur in summertime, and if they generate electricity they could take all the steam that's available.) a Dunn - To what extent is NSP involved in this project? (Wood - NSP is not eager to lose 3-M as a natural gas market, and they're possibly looking at alternatives to this project that will not affect them. We've had meetings with them, but on electrical end it's not economically sound for us to participate with them. NSP could be involved later on with some aspect of the steam line or facility line construction.) p Dunn - I was referring to the engineering of waste -to -energy plants which NSP has been involved in and their comment that they would get involved in government projects to extent of good - neighbor policy, public relations, etc. Have you checked with NSP to see what they've done so that you're not reinventing something? ® Eder - Is there any way you could give us a one -page memo regarding the research that Hennepin County went into regarding producing electricity which was economically not feasible? (Wood - There's a federal law requiring utilities to purchase regenerated electricity if available, but NSP makes electricity at 3.5 cents/kilowatt hour and we can't make it for that. Our goal is to dispose of garbage in a better way than we have in the past; and to offset any related costs, we try to sell energy which in this case is steam. If electricity is generated, it would be generated at 3-M and not at our plant.) • Morgan - Being on Metro Council Advisory Board, in some instances people are concerned they aren't going to get enough garbage since it's so competitive. (Wood - financial community wouldn't let us build two $45 million facilities and compete for waste.) a Doug Wood - Our primary goal is to make sure solid waste doesn't go to landfills anymore. Schedule says we'll make decision in 1984.