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2.4. ERMUSR 01-13-15 Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Troy Adams, P.E. —General Manager John Dietz—Chair Al Nadeau—Vice-Chair Daryl Thompson- Trustee MEETING DATE: AGENDA ITEM NUMBER: January 13, 2015 2.4 SUBJECT: 2015 Tariffs BACKGROUND: At the December 16,2014 Utility Commission meeting,the 2015 Budget was approved. Included with the budget were a number of rate increases. DISCUSSION: Enclosed for your review and consideration are the updated tariff sheets. In addition to updating the rates, updates were made to the Applicable,the Special Conditions,and the Terms and Conditions sections of the tariff sheets. The updates to the Applicable and the Special Conditions sections were done on commercial electric rates to tighten the language on what makes a qualifying customer account. The update to the Terms and Conditions section was done on all rates. This update added language to allow case by case consideration of special or unique circumstances. Also attached are the 2015 fees as adopted in 2014. ACTION REQUESTED: Staff recommends approval of the proposed 2015 rates and tariff sheets. ATTACHMENTS: • Proposed 2015 Residential Electric Service Tariff • Proposed 2015 Residential All-Electric Service Tariff • Proposed 2015 Non-Demand Electric Service Tariff • Proposed 2015 Demand Electric Service Tariff • Proposed 2015 Off Peak Demand Electric Service Tariff • Proposed 2015 Dispersed Generation/Interruptible Electric Service Tariff • Proposed 2015 Energy Management Electric Service Tariff • Proposed 2015 Street/Security Light Electric Service Tariff • Proposed 2015 Water—General Service Tariff • Proposed 2015 Water Conservation Program(3rd Step Irrigation)Tariff • 2015 ERMU Fees as adopted by the Utilities Commission on December 16,2014 PO FlEkE0 8 I` • Page 1 of 1 NATURE Reliable Public Power Provider P O W E R E D T O S E R V E 58 ELK RIVER MUNICIPAL UTILITIES Residential Electric Service Available: Within established Service Territory Applicable: To single-family residences and individually metered apartments for all domestic purposes when all service is supplied through a single meter, provided ratings of individual single-phase motors do not exceed five (5) horsepower. Character of Service: AC, 60 cycles, 120/240 volt, three wire, single-phase. Special Conditions: Residential service to a multiple dwelling or apartment house through a single meter is allowed for existing services only. Service under this rate schedule shall not be sub-metered and resold to the individual tenants on the basis of usage and the cost of electric service to the tenant must be furnished without specific charge or price which varies with the quantity of energy used. Any apartment or dwelling unit which has separate permanent kitchen facilities shall be considered as one single family private residence. Meter to be accessible to our service department at anytime. Rate: Subject to application of Power Cost Adjustment(PCA). Residential Service Basic Monthly Electric Charge: $12.00 Plus: Summer Winter $0.1360/ kWh/ month $0.1205/ kWh /month Sales tax is applicable. 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. Minimum Bill: Basic Monthly Electric Charge Terms of Payment: Bills are due and payable upon receipt and are considered delinquent if not paid by the due date noted on the bill. There will be a ten (10) percent late payment charge added to all accounts that are not paid by the due date. Terms and Conditions: 59 ELK RIVER MUNICIPAL UTILITIES Residential Electric Service 1. Usage may be fractionalized on the actual days of service for application of a change in rate or changing from summer to winter or from winter to summer rates. 2. Service will be furnished pursuant to Elk River Municipal Utilities' customer service 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. 5. Exceptions by management approval only. Approved Adopted December 16, 2014 Effective January 1, 2015 60 ELK RIVER MUNICIPAL UTILITIES Residential All Electric Service Available: Within established Service Territory. Applicable: To single-family residences and individually metered apartments for all domestic purposes with only electric energy as a sole source of heating and lighting and when all service is supplied through a single meter, provided ratings of individual single- phase motors do not exceed five (5) horsepower. Character of Service: AC, 60 cycles, 120/240 volt, three wire, single-phase. Special Conditions: Residential service to a multiple dwelling or apartment house through a single meter is allowed for existing services only. Service under this rate schedule shall not be sub-metered and resold to the individual tenants on the basis of usage and the cost of electric service to the tenant must be furnished without specific charge or price which varies with the quantity of energy used. Any apartment or dwelling unit which has separate permanent kitchen facilities shall be considered as one single family private residence. Meter to be accessible to our service department at any time. Rate: Subject to application of Power Cost Adjustment (PCA). Residential Service -All Electric Basic Monthly Electric Charge: $12.00 Plus: Summer Winter $0.1360/kWh/month $0.1205/ kWh/month Summer- Sales tax applicable Winter-Tax exempt 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. Minimum Bill: The Basic Monthly Electric Charge Terms of Payment: Bills are due and payable upon receipt and are considered delinquent if not paid by the due date noted on the bill. There will be a ten (10) percent late payment charge added to all accounts that are not paid by the due date. 61 ELK RIVER MUNICIPAL UTILITIES Residential All Electric Service Terms and Conditions: 1. Usage may be fractionalized on the actual days of service for application of a change in rate or changing from summer to winter or from winter to summer rates. 2. Service will be furnished pursuant to Elk River Municipal Utilities' customer service 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. 5. Exceptions by management approval only. Approved Adopted December 16, 2014 Effective January 1, 2015 62 ELK RIVER MUNICIPAL UTILITIES Non-Demand Electric Service Available: Within established Elk River Municipal Utilities rate areas. Applicable: Available for non-residential customer accounts. Existing or new Customer accounts with actual or projected demands of less than 50 kW for the previous 12 consecutive months if applicable. When the Customer achieves an actual maximum demand of 50 kW or greater, the Customer will be placed on the Demand Electric Service rate in the next billing cycle. The Customer accounts shall be in compliance with all policies, procedures, and safety requirements, and shall be taken through one meter. Rating of individual single-phase motors and other single-phase power and heating units served under this schedule shall not exceed ten (10) horsepower(or 7.355 kW) except by special permission. (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 by Elk River Municipal Utilities shall be required to provide suitable space and location for 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 and billed individually. Meter must be accessible to our service department at anytime. Rate: Subject to application of Power Cost Adjustment (PCA). Non-Demand Service: Basic Monthly Electric Charge: $20.00 per month Plus: Summer Winter $0.1304/ kWh / month $0.1087/ kWh/ month Sales tax applicable unless exemption is filed. 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. Minimum Bill: The Basic Monthly Electric Charge plus $1.00 per kVA per month of excess transformer capacity requested by customer. 63 ELK RIVER MUNICIPAL UTILITIES Non-Demand Electric Service In case of equipment having abnormally low annual utilization factors or unusual operating characteristics, special minimum charges may be prescribed by Elk River Municipal Utilities. Power Factor Adjustment: The rates set forth in this schedule are based on the maintenance by the Customer of a power factor of not less than 95% at all times. If the power factor, as measured by the electric department, is lower than 95%, the monthly demand charge may be multiplied by the ratio 95% divided by the measured power factor, or at Elk River Municipal Utilities' option, the power factor may be corrected at the Customer's expense. 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' lines. No motor larger than ten (10) HP (or 7.355 kW)will be allowed to be across-the-line started without notification and written authorization from Elk River Municipal Utilities. In addition, Customers who fail to provide adequate corrective equipment shall be required to own and maintain their own transformers. Terms of Payment: Bills are due and payable upon receipt and are considered delinquent if not paid by the due date noted on the bill. There will be a ten (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 or changing from summer to winter or from winter to summer rates. 2. Service will be furnished under the 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 rate 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. 5. Exceptions by management approval only. Installation of Demand Meter: At the option of Elk River Municipal Utilities, a demand meter may be installed on any customer whose: monthly usage exceeds 15,000 kWh. Approved Adopted December 16, 2014 Effective January 1, 2015 64 ELK RIVER MUNICIPAL UTILITIES Demand Electric Service Available: Within established Elk River Municipal Utilities Rate areas. Applicable: Available for non-residential customer accounts. Existing or new Customer accounts with actual or projected demand greater than or equal to 50 kW. A Customer account with a billing demand of less than 50 kW for 12 consecutive months will be given the option of switching to the Non-Demand rate. The Customer accounts shall be in compliance with all policies, procedures, and safety requirements, and shall be taken through one meter. (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 and location for 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, unless an exception is approved by management. If additional meters and services are requested by the customer, each shall be treated as a separate customer and billed individually. Meter to be accessible to our service department at any time. Rate: Subject to application of Power Cost Adjustment (PCA). Demand Service: Basic Monthly Electric Charge: $60.00 per month. Summer Winter Demand Charge: $16.94 $11.99 in kW/ month Energy Charge: $ 0.0649 $ 0.0649 in kWh/ month 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. 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. 65 ELK RIVER MUNICIPAL UTILITIES Demand Electric Service 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. But in no month shall the billing demand be greater than the value in kW determined by dividing the kWh sales for the billing month by 75 hours per month. This billing adjustment applies only if the customer's peak demand DOES NOT occur between the hours of 3:00 p.m. and 10:00 p.m. 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 (or 7.355 kW)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 may 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% divided by 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 are considered delinquent if not paid by the due date noted the bill. There will be a ten (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. 5. Exceptions by management approval only. Approved Adopted December 16, 2014 Effective January 1, 2015 66 ELK RIVER MUNICIPAL UTILITIES Off Peak Demand Electric Service Available: Within established Elk River Municipal Utilities Rate areas. Applicable: Available for non-residential customer accounts. Existing or new Customer accounts with actual or projected demand greater than or equal to 50 kW. A Customer account with a billing demand of less than 50 kW for 12 consecutive months will be given the option of switching to the Non-Demand rate. The Customer accounts shall be in compliance with all policies, procedures, and safety requirements, and shall be taken through one meter. (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, unless an exception is approved by management. 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 Power Cost Adjustment (PCA). Off Peak Demand Service: Basic Monthly Electric Charge: $60.00 per month. Summer Winter Demand Charge: On peak $16.94 $11.99 in kW/ month Off peak $ 6.46 $ 6.46 in kW/ month Energy Charge: $ 0.0684 $ 0.0684 in kWh/ month On-Peak Demand-- Actual demand during On-Peak Periods On-Peak Period-- 3:00 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. 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. But in no month shall the billing demand be greater than the valve in kW determined by 67 ELK RIVER MUNICIPAL UTILITIES Off Peak Demand Electric Service dividing the kWh sales for the billing month by 75 hours per month. This billing adjustment applies only if the customer's peak demand DOES NOT occur between the hours of 3:00 p.m. and 10:00 p.m. 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. No motor larger than ten (10) HP (or 7.355 kW)will be allowed to be across-the-line started without notification and written authorization from Elk River Municipal Utilities. In addition, Customers who fail to provide adequate corrective equipment shall be required to own and maintain their own transformers. 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% divided by 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 be a ten (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. 5. Exceptions by management approval only. Approved Adopted December 17, 2013 Effective January 1, 2014 68 MORATORIUM EFFECTIVE JUNE 1,2014 ELK RIVER MUNICIPAL UTILITIES Dispersed Generation (On-Site Generator)/Interruptible Load Program Available: Within established Elk River Municipal Utilities Rate areas. Applicable: Existing Customers, or to new Customers receiving all electrical power from ERMU and with demands between 100 kW and 1,500 kW of connected load. Customers with on-site generation greater than 1,500 kW may also qualify, but special terms and conditions may apply on a case by case basis. Customer must agree to operate on-site generation and/or limit load to a mutually agreed to Predetermined Demand Level (PDL) upon notification by ERMU or its designated agent. Customer must be served by ERMU under the Demand Electric Service Tariff. Customer must execute a Dispersed Generation Agreement or Interruptible Service Agreement to participate in either program. Customer is subject to the terms and conditions of the applicable Agreement. Not applicable to resale, standby or auxiliary service. Special Conditions: Customer must conduct normal business practices between the hours of 3:00 PM to 10:00 PM, Monday through Friday. Customer must provide access to a phone line or reimburse ERMU for all costs associated with providing program interruption notification and remote metering needs. Customer must have the means to operate on-site generation and/or reduce load to the PDL within 30 minutes following notification by ERMU or its agent. Credits apply only during months in which the Customer is fully operational. Customer represents and warrants that interruptible load of at least 100 kW shall be available for interruption upon request by ERMU or its designated agent twenty-four hours per day, seven days per week, three hundred sixty five day per year in order to receive credit. Dispersed Generation/Interruptible Credits: ERMU shall compensate Customer for load interruptions maintained at or below the PDL when requested by ERMU or its designated agent, at the rates indicated below: Monthly Credit/Kw* Summer (June, July, and Aug) $14.00 per kW Winter (Dec, Jan, and Feb) $10.00 per kW Spring/Fall (Mar, Apr, May, Sept, Oct, Nov) $ 6.00 per kW *Credit applies only during months in which Customer coincidental demand is at least 100 kW over the PDL. The difference between Customer's coincidental peak demand at the time of notice to interrupt and the PDL shall be used as a basis for establishing 69 MORATORIUM EFFECTIVE JUNE 1,2014 Customer's monthly credit. In months in which no notice to interrupt is given, the difference between Customer's coincidental peak demand and the PDL shall be used as a basis for establishing Customer's monthly demand credit. In the event that participating customers are not controlled during the monthly coincidental billing peak demand hour, the customer will receive applicable demand credits only for metered demand that exceeds the PDL and is greater than 100 kW. The demand credit is based on the applicable rates above to the kW difference between the metered demand and the PDL using hourly interval meter data measured one hour prior to the monthly coincidental billing peak demand hour. In the event the participating customer is not operating at the time of the coincidental billing peak there is no credit calculated in that month. The customer must be operating at least one hour prior to the coincidental billing demand peak or the time designated for interruption to receive credit. Example 1: Notice for disconnect or interruption is given at 11:00 a.m. for disconnect or interruption at 3:00 p.m. The participating customer begins shut down at 2:30 and has a peak demand for that month on the day of the interruption at 2:15 with a total load of 350 kW. The customer has a PDL of 50. For this example the participating customer would receive a credit for the difference between the Customer's coincidental peak demand (350 kW) and the PDL (50 kW). The customer would receive a credit for the 300 kW reduction times the seasonal rate indicated above. Example 2: There is no notice to disconnect or interrupt for this example month. The coincidental billing peak occurs on a Tuesday night at 11:00 p.m. The customer had a demand of 45 kW at the time of the coincidental billing peak (11:00 p.m.). In months with no notice the difference between the participating Customer's coincidental peak demand (45 kW) and the PDL (50 kW) shall be used to calculate the monthly credit. The difference between the coincidental billing peak and PDL in this example is -5. Since the participating customer was not operating and did not have any demand in excess of 100 kW to interrupt there is no credit given for this month. In any month in which the difference between the Customer's coincidental peak demand and the PDL is not at least 100 kW, no credit will be given. If the difference between the Customer's coincidental peak demand and the PDL remains less than 100 kW for two or more consecutive months, a new PDL may be established or ERMU shall have the right to terminate the Dispersed Generation or Interruptible Service Agreement. 70 MORATORIUM EFFECTIVE JUNE 1, 2014 If Customer fails to interrupt load down to the PDL for the specified length of time of the control period in any calendar month a $5.00/kW demand penalty will be added to the Customers bill. The demand penalty will be determined using the maximum uncontrolled kW demand, defined as the highest hourly interval above the PDL recorded during all control periods in the billing month. The Customer will not receive the monthly credit for that month or any succeeding months until performance has been demonstrated to the satisfaction of ERMU personnel. If Customer fails to perform more than two times in any calendar year, ERMU reserves the right to terminate the Agreement. Approved Adopted May 20, 2014 Effective January 1, 2015 71 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 receiving service under another rate, who add a second meter for any of the following controlled loads: Dual Fuel Space Heating Rate: This Program is available to residential customers only. 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 for up to 12 hours daily 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. Obtain a load control device furnished by 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. 6. Radiant heat in the slab of the building qualifies for dual fuel, not electric thermal storage. 7. Exceptions by management approval only. Elk River Municipal Utilities shall provide: 1. All electric energy consumed by the primary electric heating system at$.0585 per kWh. 2. During peak load conditions, ERMU will turn customer controlled electrical heat off for extended periods of time as stated above. 3. A meter to measure electricity consumed by the primary electric heating system. 4. A load control device and meter socket to accommodate the meter. Electric Vehicle Charging Rate: This Program is available to all customers of ERMU that own an electrically powered vehicle used for on road transportation. Charging of the vehicle may be interrupted up to 12 hours per day not to exceed 400 hours in a year. To qualify for the special rate, the customer shall provide: 1. Electric vehicle charging station that is used for the sole purpose of charging electric vehicles. This charging station may be 120/240 volt. 2. Customer is responsible for installation of load control device and meter socket is furnished by ERMU in a mutually agreed upon location. 3. Inspection by State Certified electrical inspector of all metering equipment and provide an affidavit to ERMU when completed. Elk River Municipal Utilities shall provide: 72 ELK RIVER MUNICIPAL UTILITIES Energy Management Rates 1. All electric energy consumed by Electric Vehicle Charging at a rate of$.0585 kWh. 2. During peak load conditions, ERMU will turn customer EV Charging off for extended periods of time as stated above. 3. Load control device and metering equipment to customer. 4. Final inspection prior to meter activation to ensure only qualified loads are being supplied through the electric vehicle charging equipment. Electric Thermal Storage (ETS) Space Heating Rate: This Program is available to all ERMU customers. An ETS space heating system is designed to store heat produced by electricity generated during eight off-peak hours for use in heating during the remaining on-peak hours daily. Off-peak hours typically occur between 11 PM and 7 AM. Qualifying ETS configurations may be central storage furnaces, room storage heaters or slab (deep heat) systems including combinations of same. To qualify for the special rate, the customer shall provide: 1. An ETS space heating system listed by UL or some other nationally recognized testing agency which can be interrupted by a single 5 amp rated relay. 2. Obtain a load control device from ERMU. 3. Accommodations for a meter and load control device and associated wiring installed according to the applicable electrical codes, and installed by a qualified electrician. 4. Inspection by a State certified electrical inspector and a representative of ERMU. Elk River Municipal Utilities shall provide: 1. All electric energy consumed by this ETS system at$.0450 per kWh. 2. This equipment will be energized only for 8 off peak hours daily. Additional on-time is provided on weekend days and holidays. 3. A meter to measure electricity consumed by the ETS space heating system. 4. A load control device which will automatically control ETS space heating system during on-peak hours. Electric Thermal Storage (ETS)Water Heating Rate: This Program is available to all ERMU customers. 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. Electric water heater must have an energy factor of .91 or more and a minimum of 80 gallons of storage capacity. 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. Obtain a 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. 73 ELK RIVER MUNICIPAL UTILITIES Energy Management Rates 5. This rate is not available for hot water use in any production process for Commercial and Industrial users. Elk River Municipal Utilities shall provide: 1. All electric energy consumed by the ETS water heater at$.0450 per kWh. 2. This equipment will be energized only for 8 off-peak hours daily. 3. A meter to measure electricity consumed by the ETS water heater. 4. A load control device and meter socket to accommodate the off-peak meter. Cycled Air Conditioning: This Program is available to all 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, ASHP or GSHP, 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, ASHP or GSHP, 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 to the customer. 7. Customers with central air conditioners, ASHP or GSHP, 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. 8. Cycled AC Program participants will receive a $9 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. INCENTIVE: Program participants will receive a $9 per month credit for 5 summer months for allowing ERMU to interrupt their air conditioners as outline above. Such payments will be forwarded as a billing credit on their May, June, July, August, and September bills. Approved Adopted December 16, 2014 Effective January 1, 2015 74 ELK RIVER MUNICIPAL UTILITIES Street/Security Light Service Available: To any customer meeting Elk River Municipal Utilities criteria for service under this schedule, and whose lighting needs are not being furnished under any other schedule. Installation costs will be determined by Elk River Municipal Utilities per the Utilities Fee Schedule or on a time and materials basis. Applicable: As determined by Elk River Municipal Utilities, but generally to non-metered roadway and area lighting: lighting unit burning time is limited to dusk to daylight (approximately 4,400 hours per year). Character Of Service: 120/240 volts, AC, as available. Street/Security Light Service Type Monthly Rate Per Fixture Low Output (0-249 Watt HPS, 0-89 Watt LED) $9.00 Medium Output(250-399 Watt HPS, 90-149 Watt LED) $15.00 High Output(400 Watt or larger HPS, 150 Watt or larger LED) $21.00 Sales tax applicable. Ownership of Equipment: Elk River Municipal Utilities will install, own, and operate the lighting units including fixtures, and control equipment unless otherwise agreed upon by Elk River Municipal Utilities and the Customer. Lamp Replacements: Lamp replacements will be made by Elk River Municipal Utilities when and as requested by the Customer. Terms of Payment: Bills are due and payable upon receipt and are considered delinquent if not paid by the due date noted on the bill. There will be a ten (10) percent late payment charge added to all accounts that are not paid by the due date. General Terms and Conditions Applicable To Non-Metered Lighting Service: 1. Area lighting installed on Elk River Municipal Utilities poles shall not be of the type that interferes with climbing room, work space, or wire clearance as defined by the National Electrical Safety Code and is to be installed below the secondary line and service drops, all per Elk River Municipal Utilities' specification. 2. At Elk River Municipal Utilities' option, all area applicable lighting units installed under this schedule shall be equipped with a photo-electric control which will limit the burning time to approximately 4,400 hours per year. 3. 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. 4. Exceptions by management approval only. Approved Adopted December 16, 2014 Effective January 1, 2015 75 ELK RIVER MUNICIPAL UTILITIES Water-General Available: To all customers who have municipal water service available at their property, lying within the corporate limits of the City of Elk River. Special Conditions: Each customer served by one meter. Multiple living entities, such as apartments, may be served by a combined meter upon approval of the Elk River Municipal Utilities and acceptance of applicable charges. Special Charges: An Account Maintenance Charge shall be applied to each meter based on the meter size according to the schedule below, and is separate from any water use. An additional monthly fee of$0.53 will be collected on a monthly basis from each non-commercial account to recover the total annual cost of$6.36 for the State of Minnesota Safe Drinking Water Testing Program (Minnesota Statutes 144.3831). Winter Period : November 1 through March 30 usage Summer Period : April 1 through October 30 usage Rates: BASIC 1st TIER 2nd TIER 3rd TIER METER TYPE MONTHLY Cost per Cost per Cost per CHARGE 1000 gallons 1000 gallons 1000 gallons Residential $ 8.43 $1.68 $3.50 $4.00 Commercial 3/4 $10.12 $1.68 $3.50 $4.00 Commercial 1 $11.25 $1.68 $3.50 $4.00 Commercial 1 '/4 $12.38 $1.68 $3.50 $4.00 Commercial 11/2 $13.50 $1.68 $3.50 $4.00 Commercial 2 $18.00 $1.68 $3.50 $4.00 Commercial 3 $39.37 $1.68 $3.50 $4.00 Commercial4 $54.00 $1.68 $3.50 $4.00 Commercial 6 $78.74 $1.68 $3.50 $4.00 Commercial 8 $106.86 $1.68 $3.50 $4.00 Commercial Irrigation Permanently Installed $44.99 $1.68 $3.50 $4.00 Commercial Irrigation Seasonally Installed $18.00 $1.68 $3.50 $4.00 Rate Tier Definition: Residential: First Tier Rate = 0 -9,000 gallons per month. Second Tier Rate = Between 9,000 and 15,000 gallons per month. Third Tier Rate = Above 15,000 gallons per month. 76 ELK RIVER MUNICIPAL UTILITIES Water-General Commercial: First Tier Rate = 0 — 1.1 X previous year's average winter period monthly consumption. Second Tier Rate = Between 1.1 X previous year's average winter period monthly consumption to 1.1 X previous year's average winter monthly consumption +40,000 gallons. Third Tier Rate = Above 1.1 X previous year's average winter period monthly consumption +40,000 gallons. For Commercial Irrigation, account maintenance charge only applicable for months meter is in service. For new customers, if a minimum of 3 winter months previous years history is not available to establish the Tier amount, the First Tier rate shall be utilized until a minimum of 3 months history is established. Minimum Bill: Account Maintenance charge plus any charges applicable to multiple living entities. Terms of Payment: Bills are due and payable upon receipt and delinquent if not paid by the due date note on the bill. There will be a ten (10) percent late payment charge added to all accounts that are not paid by the due date. Residential water- exempt from sales tax. Commercial water- subject to sales tax unless exemption is filed. Approved Adopted December 16, 2014 Effective January 1, 2015 77 ELK RIVER MUNICIPAL UTILITIES Water Conservation Program (3'd Step Irrigation) Available: Within established Elk River Municipal Utilities Rate areas. Applicable: Existing Customer Accounts that have zero water consumption November— March of the previous year, or new customers that are installing a new irrigation system. New irrigation customers are strongly encouraged to install a SMART Controller. Participation in this program requires that customers implement water conservation measures on an annual basis to be eligible for the exemption from 3rd Step water rates. Character of Service: ERMU will provide 35 PSI at the curb. The customer will be required to have backflow protection to ensure ERMU water quality. Meter facilities will be placed in an area that is mutually agreed to by Customer and ERMU, and the meter must be accessible to ERMU service staff 24 hours a day 7 days a week. Special Conditions: Customer will remove the meter prior to winterization of the irrigation system and return it to ERMU for annual calibration. Customer must complete and submit the Water Conservation Rebate Application annually and allow ERMU staff to inspect or review the water conservation measures implemented prior to receiving the exemption from 3rd Step rates. Rate: By participating in this program and achieving ten (10)Water Conservation Points (WCPs) annually, the Customer will be exempt from the 3rd step rates. The participating irrigation Customer that has achieved 10 WCPs will be billed at the 2nd step rates for all water usage. The exemption will be applied to all water units that exceed the previous year's winter average times 1.1 plus 40 units. Water Conservation Points (WCP): Water Conservation Points will be awarded to irrigation customers based on water conservation measures installed at the property served by ERMU. ERMU staff will inspect and approve all water conservation measures annually. To participate in the program, a total of 10 WCP must be achieved annually. Water conservation measures include, but are not limited to; SMART Controllers, Eco- Irrigation heads or drip lines, rain gardens, landscaping, and annual irrigation assessments. Terms and Conditions: 1. Customer must participate in the program for at least one year. 2. The 3rd Step exemption applies only to the contiguous property served by the water meter at the installation address on the Water Conservation Rebate Application. 3. Each individual property(water meter) must submit a completed Water Conservation Rebate Application annually. 4. Extensions made for service under this schedule are subject to the provisions of Elk River Municipal Utilities' rules governing Extension of Service and Facilities. 5. Changes to this program may be made by ERMU from time to time and will be communicated to the Customer three (3) months prior to elimination or change in the requirements of the Water Conservation Program. Approved Adopted December 16, 2014 Effective January 1, 2015 78 • Elk River Municipal Utilities 2015 Utilities Fee Schedule Adopted by the Utilities Commission on December 16,2014 under authority per Minnesota Statute 412.361 Fee Description 2015 1 New Residential Electric Connection-Developer-Lot with ERMU water service $ 475.00 2 New Residential Electric Connection-Developer-Lot without ERMU water service $ 575.00 3 New Residential Electric Connection-Builder $ 875.00 4 New Wire Footages over 200'(per foot) $ 4.00 5 New Service Frost Trenching(per foot) $ 5.00 6 New Commercial&Industrial Electric Connection 50% 7 Service Upgrades or Additions for Existing Customers 100% 8 Minimum Temporary Electric Service Fee-Existing Transformer $ 150.00 9 Minimum Temporary Electric Service Fee-Without Existing Transformer $ 500.00 10 Street Light-30'Decorative Pole with 6'Arm and Fixture $ 1,850.00 11 Street Light-23'Decorative Pole with Traditionaire Fixture $ 1,500.00 12 Security Light-Wood Pole with Fixture $ 975.00 13 Security Light-Existing Pole $ 125.00 14 Pole Attachment Fee(per pole) $ 6.50 15 16 Water Access Charge=Water Connection Charge+Water Availability Charge $ 3,325.00 17 Water Connection Charge(Per Plumbing Unit)-Builder $ 3,000.00 18 Water Availability Charge(Per Plumbing Unit)-Developer $ 325.00 19 Abandoned Water Service $ 2,500.00 20 Hydrant Water Sales-Rental(per week) $50/week 21 Hydrant Water Sales-Units(per 1000 gallons) $ 4.00 22 Deposit for 5/8"Hydrant Meter $ 150.00 23 Deposit for 2 1/2"Hydrant Meter $ 1,000.00 24 Private Hydrant Maintenance Program Monthly Fee $ 5.00 25 26 NSF Fee $ 30.00 27 Red Tag Handling Fee $ 20.00 28 Administrative Fee for Continued Submission of Checks After No-Check Notice Given $ 20.00 29 Penalty Amount 10% 30 Electric Service Disconnect Fee-Meter Technician $ 50.00 31 Electric Service Disconnect Fee-Line Crew $ 150.00 32 Water Shut-Off Fee $ 100.00 33 Meter Tampering Fee $ 250.00 34 Meter Testing Fee $ 50.00 35 Energy Audit $ 50.00 36 37 Billable Cost of Materials Markup 15% 38 Billable Labor Markup 55% 39 Billable Vehicle/Equipment(per employee per hour) $ 30.00 40 79