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Lyle Salmela, 1480 Arden Vista Court, stated he has 62 years’ experience in energy and 33 years <br />with NSP/Xcel. He reported he supported Xcel’s gas utility and maintaining profitability while <br />aiming for net zero by 2050. He indicated he suggested pursuing geothermal within Rice Creek <br />Commons and he believed Option 3 seems to be the optimal heat pump choice as it enables <br />each customer to choose their own system. He explained he would also like to see grid solar <br />within the project. He stated Scenario 2 seems to be the best geothermal system. He indicated <br />he had concerns with the number of customers it would take to make it economical and what <br />the cost would be for installation per customer. <br /> <br />Consent Agenda <br /> <br /> None. <br /> <br />Old Business <br /> <br />None. <br /> <br />Public Hearings <br /> <br />None. <br /> <br />New Business <br /> <br />a. Approve Support Letter for Xcel Thermal Energy Network Demonstration Project <br /> <br />Director Mitchell stated in February 2025, the Minnesota Public Utilities Commission approved <br />Xcel Energy’s Natural Gas Innovation Plan, in response to Minnesota’s 2021 Natural Gas <br />Innovation Act. The plan is intended to reduce greenhouse gas emissions, explore innovative <br />technologies, and support the state’s transition to a lower-carbon energy future. Xcel Energy's <br />plan includes several pilot programs and research and development projects. One of them is a <br />Thermal Energy Network demonstration project for a roughly 500-ton community ground- <br />source heat pump system owned and operated by Xcel that will provide building heating and <br />cooling as an archetype project. Xcel requests interested communities submit a letter of <br />support for the pilot project saying they would help identify an appropriate site for the project <br />and promote and facilitate the project if selected. By submitting this letter, Xcel will consider <br />our community for participation in this demonstration project, but there is no obligation to <br />participate. <br /> <br />Commissioner McGuire stated she believed it would be very valuable it Rice Creek Commons <br />were selected as a demonstration project. <br /> <br />Commissioner Monson commented if this were to move forward, it would be a $10 million <br />investment in the community. She asked if staff would be bringing this item back to the City and <br />the County for letters of support. Director Jagoe stated this would be staff’s recommendation.