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6.2. ERMUSR 03-18-2003 Slk River Municipal Utilities 322 King Avenue phone: 763.441.2020 Elk River,MN 55330 Fax:763.441.8099 March 5, 2003 To: Elk River Municipal Utilities Commission James Tralle John Dietz Jerry Takle From: Bryan C. Adams Subject: Electric Cycled Air Conditioning Program In 2000, GRE revised the cycled air conditioning program from reduced energy rate to a fixed $6/month rebate for the 3 summer months. The ERMU, has also changed the retail rate to reflect the fixed $6 rebate for our 5 month summer period for the new customers. See the attached rate sheet. We have approximately 160 customers on the old reduced energy rate and approximately 140 customers on the new fixed rebate program. Staff recommends retiring the reduced energy rate and placing all the cycled air conditioning customers on the fixed rebate. This change will effect customers different. If a customer uses their air conditioner a lot, the reduced energy rate is better. If they use the air conditioner very little, the fixed rebate is better. The benefit to the ERMU is we only have a single program to administer, and we no longer need to read and maintain the off peak electric meter. ELK RIVER MUNICIPAL UTILITIES Energy Management Rates Available: Within Elk River Municipal Utilities (ERMU) established service territory. Applicable: To single family residences, non-demand and demand customers when all service is supplied through a single meter. Dual Fuel Space Heating Rate: A dual fuel space heating system consists of a primary electric heating system and a secondary non-electric space heating system both capable of heating a structure at design conditions. Interruptions of the primary system will usually occur on peak winter days and a maximum of 400 hours per heating season. To qualify for the special rate, the customer shall provide: 1. A primary electric space heating system which can be interrupted by a single 5 amp rated relay. 2. A secondary non-electric space heating system capable of automatic start-up and continuous operation upon interruption of the primary system. 3. Purchase load control device from ERMU. 4. Accommodations for a meter and load control device and associated wiring installed according to the applicable electrical codes, and installed by a qualified electrician. 5. Inspection by a State certified electrical inspector and a representative of ERMU. Elk River Municipal Utilities shall provide: 1. All electric energy consumed by the primary electric heating system at$.0395 per KWH. 2. During our peak load conditions, will turn your controlled loads off for extended periods of time as stated above. 3. A meter to measure electricity consumed by the primary electric heating system. Electric Thermal Storage (ETS) Space Heating Rate: An ETS space heating system is designed to store heat produced by electricity generated during eight off-peak hours daily for use in heating during on-peak hours. Off-peak hours typically occur between 11 PM and 7 AM. Qualifying ETS configurations may be central storage furnaces, room storage heaters or slab (deep heat) systems including combinations of same. To qualify for the special rate, the customer shall provide: 1. An ETS space heating system listed by UL or some other nationally recognized testing agency which can be interrupted by a single 5 amp rated relay. 2. Purchase load control device from ERMU. 3. Accommodations for a meter and load control device and associated wiring installed according to the applicable electrical codes, and installed by a qualified electrician. 4. Inspection by a State certified electrical inspector and a representative of ERMU. Elk River Municipal Utilities shall provide: 1. All electric energy consumed by this ETS system at$.0395 per KWH. 2. This equipment will be energized only between the hours of 11:00 PM and 7:00 AM. 3. A meter to measure electricity consumed by the ETS space heating system. Energy Management Rates cont. Electric Thermal Storage (ETS)Water Heating Rate: An ETS water heater is designed with extra storage capacity to provide total domestic hot water needs from electricity consumed only during eight off-peak hours daily. Off-peak hours typically occur between 11 PM and 7 AM. Qualifying ETS configurations may be a large single tank, dual tanks plumbed in series, or an electric and non-electric tank plumbed in series with the electric placed on the cold water side. To qualify for the special rate, the customer shall provide: 1. An ETS water heating system which can be interrupted directly by a single 30 amp rated relay. 2. Purchase load control device from ERMU. 3. Accommodations for a meter and load control device and associated wiring installed according to the applicable electrical codes, and installed by a qualified electrician. 4. Inspection by a State certified electrical inspector and a representative of ERMU. Elk River Municipal Utilities shall provide: 1. All electric energy consumed by the ETS water heater at$.0395 per KWH. 2. This equipment will be energized only between the hours of 11:00 PM and 7:00 AM. 3. A meter to measure electricity consumed by the ETS water heater. Cycled Air Conditioning: This Program is available to all residential customers served by ERMU who have central air conditioners. Program participants must allow installation of a utility supplied load control device so air conditioning demand can be reduced at critical times. This Program is subject to the following terms and conditions: 1. The Customer must have a conventional central air conditioner of at least 2 tons capable of being interrupted with a 5 amp relay. 2. ERMU will furnish the load control device and pay to have it installed by a licensed electrician. Separate metering is not required. 3. The Customer must allow access for installation of the load control device during normal business hours. 4. The Customer must allow access for load control maintenance and compliance inspections by ERMU personnel during normal business hours. 5. Customers must agree to allow ERMU or its designee to remotely cycle their central air conditioner off for approximately 15 minutes out of each 30 minute period at critical peak use times during the cooling season (May through September). Except for extreme emergencies, duration of said control will not exceed 6 hours per day and more than 200 hours total per cooling season. 6. Customers who elect to participate in this Program must remain on it for at least one cooling season or part of the load control installation costs may be assessed. 7. Customers with central air conditioners that are grossly undersized for the conditioned space are discouraged from participating. 8. Customer with central air conditioners that are grossly oversized for the conditioned space will not be allowed to participate. Such systems do not provide ERMU sufficient load reduction relief at critical peak use times. INCENTIVE: Program participants will receive a $6 per month credit for 5 summer months for allowing ERMU to interrupt their air conditioners as outlined above. Such payments will be forwarded as a billing credit on their May, June, July, August, and September bills.