Grand Marais Secures Zero-Cost EV Charger, Faces Challenges with Renewable Energy Compliance

The Grand Marais City Council meeting delved into critical matters regarding the city’s electric vehicle (EV) infrastructure, financial projections for the electric utility service, and essential upgrades to water and wastewater facilities. The council announced a new agreement for a zero-cost EV fast charger, detailed budgetary concerns, and discussed ongoing improvements to vital city services.

The council’s most notable accomplishment was securing a new fast charger agreement with Chem Power to replace the defunct Tridium charger. Under the guidance of Shane, a representative, the city successfully negotiated a contract wherein Chem Power would provide a 50KW charging station without cost. This development follows the city’s previous difficulties with Tridium’s services. The new charger will maintain its location near the newly constructed city hall, contributing to the broader initiative to enhance the EV charging infrastructure along Highway 61, supported by a grant from the Minnesota Pollution Control Agency (MPCA).

Discussions revealed that the previous Tridium charger was one of the few malfunctioning units among similar chargers in neighboring cities. Despite ongoing repair efforts, logistical challenges and parts availability have stalled progress. The city currently relies on two slower level two chargers located at the campground and city hall.

The council also explored the contractual arrangements with Zeff, who would receive 10% of the revenue generated from the charging services. Despite past challenges with Zeff, the council was inclined to proceed with the zero-cost offer after renegotiating contract terms to better protect the city’s interests, particularly concerning liability. The initial terms proposed by Zeff were deemed inadequate, especially regarding potential damage from negligence. The city’s representatives insisted that liability should not be capped.

The meeting further addressed the renewable energy requirements imposed by the MPCA for funding eligibility. The city intends to meet these requirements by purchasing renewable energy credits (RECs) to offset the energy used by the charging station. Onsite renewable energy generation was considered unrealistic due to space and demand constraints. The council emphasized the need for careful documentation to ensure compliance with grant stipulations regarding renewable energy usage.

In examining the city’s relationship with the Power Company Association (PCA) and Zephyr Energy (ZE), it was clarified that while the city lacks formal obligations to PCA, ZE does have such commitments. A proposal was made for ZE to enroll in a renewable energy program offered by the utility, allowing the city to manage REC purchases based on customer usage. Separately metered systems would reflect REC coverage on customer bills.

Financial discussions included the 2026 electric draft budget, with the revelation that SIMPA’s wholesale rates would decrease by 10% next year. This reduction was already anticipated in the budget. The council also celebrated a pause in health insurance cost increases for 2026, attributed to low usage rates over the years, despite previously budgeting for a 10% increase.

The council considered the potential for a rate decrease given the wholesale rate reduction. However, the approach was to maintain rate predictability rather than react to wholesale changes, contrasting with larger cities that focus on the lowest costs at any given time. A modest 2% rate increase was suggested, with further budget component discussions encouraged before any decisions.

Additional financial analysis addressed personnel costs, which are slightly lower due to insurance uncertainties. The budget for supplies, including transformers and wire, reflected rising costs tied to supply chain issues and inflation post-COVID. The city’s debt service had decreased following the conclusion of power plant bond payments, with only the public works garage bond remaining.

The council also discussed the replacement of manual switches at the substation with motorized alternatives, addressing safety concerns for personnel operating under high voltage. This project is now part of Simpa’s capital plan, alongside the replacement of insulators, requiring early morning power outages for safe execution.

Finally, the meeting covered essential water and wastewater facility upgrades, highlighting improvements at the water treatment plant, such as a new roof, cleaned filter materials, and chemical feed system replacements. The council emphasized the importance of public awareness regarding these upgrades, noting that while the wastewater plant often garners more attention, the water plant’s functionality is crucial. A media strategy was proposed to inform the public about these vital enhancements.

Note: This meeting summary was generated by AI, which can occasionally misspell names, misattribute actions, and state inaccuracies. This summary is intended to be a starting point and you should review the meeting record linked above before acting on anything you read. If we got something wrong, let us know. We’re working every day to improve our process in pursuit of universal local government transparency.
Mayor:
Tracy Benson
City Council Officials:
Craig Schulte, Michael Garry, Ben Peters, Bill Lovaas

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