5.3. ERMUSR 05-10-2011Elk River ^-~
Municipal Utilities
13069 Orono Parkway • P.O. Box 430
Elk River, MN 55330-0430
UTILITIES COMMISSION MEETING
Phone: 763.441.2020
Fax: 763.44 L8099
TO: FROM:
Elk River Municipal Utilities Commission Troy Adams, P.E. - Director of Operations
John Dietz, Chair
Daryl Thompson, Vice Chair
Al Nadeau, Trustee
MEETING DATE: AGENDA ITEM NUMBER:
Ma 10, 2011 5.3
SUBJECT:
Review and Consider Revision to Off Peak Demand Electric Service Tariff
BACKGROUND:
With the December 2010 Commission approval of the 2011 budget and by the January 2011 Commission
action to receive, the electric tariffs were made effective January 1, 2010. Included with these tariffs is an
Off Peak Demand Electric Service tariff. This tariff is attached for reference.
DISCUSSION:
The Off Peak Demand Electric Service tariff has a higher energy rate than the Demand Electric Service
tariff, but offers a substantially lower demand rate for a specified off peak time period. The intent of this
rate is to encourage commercial customers to shift load to an off peak time through lower overall electric
costs. By shifting the customers load to this off peak time, ERMU lowers our wholesale power costs,
improves system load factor, and utilizes the distribution system more effectively.
In the past, this tariff has not been utilized by our commercial customers. However, this tariff does have
the potential to be used as apro-business tool to help local commercial customers lower their electric cost
in a way that is mutually beneficial to ERMU. Over the past year, ERMU explored options to increase
use of this tariff by our commercial customers. In has been identified that this tariff would be better
received by potential uses if the off peak time period were to be revised. Changing the start of the On-
Peak period from lpm to 2pm would allow greater opportunity to utilize this rate on our commercial
customers without increasing the wholesale power cost risk exposure. ERMU is currently working with
one commercial customer who has switched to this tariff but is interested in this proposed change in On-
Peak start time.
ACTION REQUESTED:
Staff recommends the Commission approve the revision of the Off-Peak Demand Electric Service tariff
changing the On-Peak time period start time from 1 pm to 2pm.
ELK RIVER MUNICIPAL UTILITIES
Off Peak Demand Electric Service
Available: Within established Elk River Municipal Utilities Rate areas.
Applicable: Existing Customers, or to new Customers with demands of 50 kW or more
for three (3) consecutive months whose entire requirements are taken through one
meter, under a contract of standard form. (Not applicable to resale, standby or auxiliary
service,)
Character Of Service: AC, 60 cycles, 120 volts or 120/240 volts, single-phase; 120/208
volts, or 277/480 volts, three-phase. Four wire, 240 volts three-phase will only be
applicable to existing customers now being served by this voltage. A customer requiring
voltages other than that already established shall be required to provide suitable space
location of Elk River Municipal Utilities transformers, metering and associated
equipment.
Special Conditions: One meter shall be installed to service one class of business. If
additional buildings are required for a given business, they shall be interconnected by
the customer to obtain one meter. If additional meters and services are requested by the
customer, each shall be treated as a separate customer.
Meter to be accessible to our service department at anytime.
Rate: Subject to application of Cost Adjustment (CA).
Off Peak Demand Service: Account Maintenance Charge: $55.00 per month,
Summer
Demand Charge:
On peak $15.89
Off peak $ 5.90
Energy Charge: $ 0.0590
Winter
$11.27 in KW /month
$ 5.90 in KW /month
$ 0.0590 in KWh / month
On-Peak Demand-- Actual demand during On-Peak Periods
On-Peak Period-- 1:00 PM -10:00 PM weekdays
Off-Peak Demand-- Actual demand during Off-Peak Periods less On-Peak Demand
Off-Peak Period-- All non On-Peak Periods
Minimum Bill: Maximum billing demand during previous twelve months times 3.0% of
the demand charge, or the actual demand multiplied by the demand charge ,whichever
is greater plus $1.00 per kVA per month of excess transformer capacity requested by
customer.
Sales tax applicable unless exemption is filed.
ELK RIVER MUNICIPAL UTILITIES
Off Peak Demand Electric Service
Summer: The summer rate shall apply to the Customer's use from May 1 through
September 30.
Winter: The winter rate shall apply to the Customer's use from October 1 through April
30.
Determination of Billing Demand: The billing demand shall be the highest measured
demand (corrected for power factor if required) during any fifteen (15) minute period
occurring in the current billing period.
Fluctuating Loads: Customers operating equipment having a highly fluctuating or large
instantaneous demand, such as welders and X-ray machines, shall be required to pay all
non-betterment costs of isolating the load from the balance of Elk River Municipal
Utilities' system so that the load will not unduly interfere with service on Elk River
Municipal Utilities' lines. In addition, Customers who fail to provide adequate corrective
equipment shall be required to own and maintain their own transformers. No motor
larger than ten (10) HP will be allowed to be across-the-line started without notification
and written authorization from Elk River Municipal Utilities.
Power Factor Adjustment: For loads of 50 KW or more, or at the option of Elk River
Municipal Utilities for loads of less than 50 KW, power factor adjustments will be made in
the billing demand, when the power factor, as determined by test, at the time of the
Customer's maximum use is less than 95%. If the power factor, as measured by Elk
River Municipal Utilities' electric department, is lower than 95%, the monthly demand
charge may be multiplied by the ratio 95% to the measured power factor, or at Elk River
Municipal Utilities' option, the power factor may be corrected at the Customer's expense.
Terms of Payment: Bills are due and payable upon receipt and delinquent if not paid by
the due date noted the bill. There will beaten (10} percent late payment charge added
to all accounts that are not paid by the due date.
Terms and Conditions:
1. Usage may be fractionalized on the actual days of service for application of a
change in rate.
2. Service will be furnished under Elk River Municipal Utilities rules.
3. Extensions made for service under this schedule are subject to the provisions of Elk
River Municipal Utilities' rules governing Extension of Service and Facilities.
4. The rates set forth herein may be modified by the amount of any governmental
changes imposed and levied on transmission, distribution, production, or the sale of
electrical power.
Approved ~_ ~ v ~-- Adopted December 14, 2010
Effective January 1, 2011