East Grand Forks plans to sell WAPA renewable energy credits and seed an infrastructure fund

East Grand Forks staff told the council they intend to sell renewable energy credits (RECs) the city receives as part of its Western Area Power Administration (WAPA) power allocation through the Minnesota Municipal Power Authority (MMPA) and place proceeds into a new restricted fund for economic development infrastructure.

Reed Hutton said Water & Light negotiated an offer from MMPA to buy the city’s RECs under a 15‑year agreement at a price of $3 per REC. He said the city would create a special revenue account—proposed as an "economic development infrastructure fund"—to pay for public infrastructure improvements, property acquisitions, or extensions of utilities to spur industrial development.

Keith Miklseth briefed the council on WAPA mechanics and said the arrangement ‘‘was a way to lock in $3 million over 15 years’’ at the offered price, while noting REC allocations can fluctuate year to year. Councilmember Tim Riael and staff estimated the city could receive several hundred thousand dollars in the near term, with staff suggesting the first receipts could total roughly $400,000 within about a year.

Council members discussed whether to approve the sales agreement at the next council meeting and craft the fund resolution later, or delay the sale until the fund parameters were finalized. The mayor urged a clear, publicly available statement of permitted uses if the council accepts proceeds. Staff proposed approving the sale first and returning a draft resolution describing fund purpose, reporting and spending parameters for council approval.

The item will appear on the council agenda next week; staff said the mechanics would include an audit trail and annual reporting for the fund.