2.4 ERMUSR 01-10-2017 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Tom Sagstetter—Conservation and Key
John Dietz—Chair Accounts Manager
Al Nadeau—Vice-Chair
Daryl Thompson - Trustee
MEETING DATE: AGENDA ITEM NUMBER:
January 10, 2017 2.4
SUBJECT:
2017 Tariffs
BACKGROUND:
At the December 13, 2016 Utility Commission meeting,the 2017 Budget was approved.
Included as part of the budget were modest rate increases for electric and water customers.
DISCUSSION:
Enclosed for your review and consideration are the updated tariff sheets for 2017. The electric
rates for 2017 will have increases in the basic monthly electric charge for all Residential and
Non-Demand and Demand Commercial rate schedules. Energy(kWh) rates for these rate
schedules along with the energy management rates will see a modest per kWh increase. The
average increase is less than 1%for electric customers.
Under the Energy Management Rates; beginning in 2017 the Electric Vehicle Charging Rate will
be based on Time of Use (TOU)rates instead of direct load control and off-peak pricing.
Customers will now be able to charge their vehicle whenever they want and will be charged an
appropriate rate for the time of day that they charge. The on-peak pricing will be from 11:00 p.m.
to 7:00 a.m. Monday through Friday; all other times will be at the off-peak pricing.
The water rates have been changed as they were approved in the 2017 Budget. The average
increase for water customers is estimated to be 2.3%. In addition to updating the water rates,
Staff is recommending the elimination of the Water Conservation Program (3rd Step Irrigation)
Tariff. At this time there are no customers participating in the program and new water
conservation programs have been implemented to help all customers use water more efficiently
subsequently reducing their monthly water expenses.
Also attached for review is the 2017 Utilities Fee Schedule as adopted on October 11, 2016.
ERIATURE1
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ACTION REQUESTED:
Staff recommends approval of the proposed 2017 rates and tariff sheets and the elimination of
the Water Conservation Program (3rd Step Irrigation) Tariff.
ATTACHMENTS:
• Proposed 2017 -T.3 -Demand Electric Service Tariff
• Proposed 2017 - T.4 -Dispersed Generation/Interruptible Electric Service Tariff
• Proposed 2017 - T.5 -Energy Management Electric Service Tariff
• Proposed 2017 - T.6 -Non-Demand Electric Service Tariff
• Proposed 2017 - T.7 - Off Peak Demand Electric Service Tariff
• Proposed 2017 - T.8 - Residential All-Electric Service Tariff
• Proposed 2017 - T.9 - Residential Electric Service Tariff
• Proposed 2017 - T10 - Street/Security Light Electric Service Tariff
• Proposed Elimination 2016 T11 - Water Conservation Program (3rd Step Irrigation) Tariff
• Proposed 2017 - T12 - Water—General Service Tariff
• Proposed 2017 - T13 - Ground Source Heat Pump Tariff
• Proposed 2017 -T14 - Commercial All Electric with Ground Source Heat Pump
• 2017 - T.1 -Fee Schedule adopted by the Utilities Commission on October 11, 2016
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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: $70.0060.00 per month.
Summer Winter
Demand Charge: $16.94 $11.99 in kW/ month
Energy Charge: $ 0.065806'19 $ 0.06580649 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.
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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 136, 20166
Effective January 1, 20176
55
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
56
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.
57
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, 20176
58
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 an electric heating system and a secondary non-
electric space heating system both capable of heating the living space at design conditions.
Interruptions of the electric heating 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. An 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 electric heating 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. Dual Fuel is not allowed in garages, pole sheds, or any structure that does not confirm to
the residential building code.
8. 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. The rate is subject to application of the Power Cost Adjustment (PCA).
3. During peak load conditions, ERMU will turn customer controlled electrical heat off for
extended periods of time as stated above.
4. A meter to measure electricity consumed by the electric heating system.
5. 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 can will
occur any time but will be subject to "on-peak" and in the eight"off-peak" energy charges per
hours daily. Off peak hours typically occur between 11 p.m. and 7 a.m. and all other hours are
considered on-peak. Customers could install 120 volt charging equipment but the Electric
Vehicle Charging Rate would not be applicable.
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 must be 240 volt.
2. Customer is responsible for installation of the load control device and additional meter
socket (furnished by ERMU) in a mutually agreed upon location.
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ELK RIVER MUNICIPAL UTILITIES
Energy Management Rates
3. Inspection by a State Certified electrical inspector of all metering equipment and provide
an affidavit to ERMU when completed.
Elk River Municipal Utilities shall provide:
1. All "On-Peak" electric energy consumed by the€electric Vvehicle Gcharging equipment
will be at thee summer rate of$0.136300585/ kWh from May 1 through September 30 and
the winter rate of$0.12095/kWh October 1 through April 30.
12.All "Off-Peak" electric energy consumed by electric vehicle charging equipment will be at
the rate of$0.059685 annually.
-23.The rate is subject to application of the Power Cost Adjustment (PCA).
3-.4.This equipment will be available for charging at energized applicable rates 24 hours and is
not subject to any load control strategies.only for 8 off peak hours daily. Additional on time
is provided on weekend days and holidays.
4.5.Load control device and Mmetering equipment to customer.
5-6.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 $.0450 per kWh.
2. The rate is subject to application of the Power Cost Adjustment (PCA).
3. This equipment will be energized only for 8 off peak hours daily. Additional on-time is
provided on weekend days and holidays.
4. A meter to measure electricity consumed by the ETS space heating system.
5. A load control device which will automatically control ETS space heating system during
on-peak hours.
Electric Thermal Storage (ETS) Water Heating Rate: This Program is available to all ERMU
customers. An ETS water heater is designed with extra storage capacity to provide total
domestic hot water needs from electricity consumed only during eight off-peak hours daily. Off-
peak hours typically occur between 11 PM and 7 AM. Qualifying ETS configurations may be a
60
ELK RIVER MUNICIPAL UTILITIES
Energy Management Rates
large single tank, dual tanks plumbed in series, or an electric and non-electric tank plumbed in
series with the electric placed on the cold water side. Electric water heater must have an energy
factor of.91 or more and a minimum of 80 gallons of storage capacity.
To qualify for the special rate, the customer shall provide:
1. An ETS water heating system which can be interrupted directly by a single 30 amp rated
relay.
2. Obtain a load control device from ERMU.
3. Accommodations for a meter and load control device and associated wiring installed
according to the applicable electrical codes, and installed by a qualified electrician.
4. Inspection by a State certified electrical inspector and a representative of ERMU.
5. This rate is not available for hot water use in any production process for Commercial and
Industrial users.
Elk River Municipal Utilities shall provide:
1. All electric energy consumed by the ETS water heater at$.0450 per kWh.
2. The rate is subject to application of the Power Cost Adjustment (PCA).
3. This equipment will be energized only for 8 off-peak hours daily.
4. A meter to measure electricity consumed by the ETS water heater.
5. 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.
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ELK RIVER MUNICIPAL UTILITIES
Energy Management Rates
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.
9. The rate is subject to application of the Power Cost Adjustment (PCA).
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 136, 20166
Revised May 10, 2016
Effective January 1, 20176
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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: $25.0020.00 per month
Plus:
Summer Winter
$0.13061301 / kWh / month $0.10891087 / 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.
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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 138, 20165
Effective January 1, 20176
64
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: $760.00 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: $ 0.069084 $ 0.069084 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
65
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 136, 20166
Effective January 1, 20176
66
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: $13.0012.00
Plus:
Summer Winter
$0.13630/ kWh / month $0.12091205/ 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.
67
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 136, 20166
Effective January 1, 20176
68
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: $13.0012.00
Plus:
Summer Winter
$0.13631360/ kWh / month $0.12091205/ 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:
69
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 138, 20166
Effective January 1, 20176
70
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 135, 20165
Effective January 1, 20176
71
ELK RIVER MUNICIPAL UTILITIES
Water Conservation Program (3rd 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 faille exemption
from 3`d Step water rates.
Character of Service: ERMU will provide 35 PSI at the water meter. The customer will be required to
maintain all facilities from the water main to the metering facilities and ha 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 3`d 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 drips, rain gardens, landscaping, and annual irrigation assessments.
Terms and Conditions:
1. Cus : must participate in the program for at least one year.
2, Th `d
SUp exemption applies only to the contiguous property served by the water meter at the
insttion address on the Water Conservation Rebate Application.
3, Each individual property (water meter) must submit a completed Water Conservation Rebate
AppH tion 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.
EliminatedApproved Adopted December 8, 2015
EliminatedEffectivc January 1, 20176
72
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: A basic monthly water charge shall be applied to each meter based
on the meter size according to the schedule below, and is separate from any water use.
Included in the basic monthly water charge is $0.53 that is collected on a monthly basis
from each service connection (excluding irrigation only accounts) to recover the total
annual cost of$6.36 for the State of Minnesota Safe Water Testing Program (Minnesota
Statutes 144.3831).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
ech non commercial account to recover the total annual cost of$6.36 for the State of
Minnesota Safe Drinking Water Testing Program (Minnesota Statutes 141.3831).
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 $ 8.8661 $ 1.772 $3.50 $4.00
Commercial 3/4 $ 10.6337 $ 1.772 $3.50 $4.00
Commercial 1 $ 11.8253 $ 1.772 $3.50 $4.00
Commercial 1 1/4 $ 13.012,59 $ 1.772 $3.50 $4.00
Commercial 1 1/2 $ 14.193.81 $ 1.772 $3.50 $4.00
Commercial 2 $ 18.9145 $ 1.772 $3.50 $4.00
Commercial 3 $ 41.360.35 $ 1.772 $3.50 $4.00
Commercial 4 $ 56.73545 $ 1.772 $3.50 $4.00
Commercial 6 $ 82.730,74 $ 1.772 $3.50 $4.00
Commercial 8 $ 1.772 $3.50 $4.00
$112.2709.53
Commercial Irrigation
Seasonally or $ 18.9145 $3.50 $4.00
Permanently Installed
73
ELK RIVER MUNICIPAL UTILITIES
Water - General
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.
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.
Commercial irrigation accounts are not eligible for First Tier Rate as there is no winter
use.
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. Commercial irrigation is not eligible for First Tier Rate
as there is no winter use.
Minimum Bill: Basic monthly waterAccount 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 136, 20166
Revised July 12, 2016
Effective January 1, 20176
74
ELK RIVER MUNICIPAL UTILITIES
Ground Source Heat Pump Rate
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:
Ground Source Heat Pump Rate: This Program is available to residential and commercial
customers. Aground source heat pump (GSHP) is a central heating and/or cooling system for
residential living spaces or commercial work spaces. Residential living spaces will meet all the
applicable Minnesota state building codes. Commercial structures that are classified as Utility
and Miscellaneous Group U by the International Code Council are not eligible for this rate. This
program is available to residential or commercial customers with a GSHP as their sole heat
source. GSHPs that qualify for this program will not be interrupted. A GSHP paired with
another heating source such as natural gas, fuel oil, or propane may qualify for the Dual Fuel
program.
To qualify for the special rate, the customer shall provide:
1. The GSHP is the only heat source. Only closed loop GSHPs are eligible for this rate
beginning January 1, 2016.
2. ERMU and the customer will agree on a meter location prior to the meter socket
installation.
3. Commercial customers may have a separate meter to determine the load of the heat
pumps. Electric usage for the remainder of the building will be metered and priced using
the appropriate rate (Demand, or Non-Demand).
4. Accommodations for a meter and associated wiring installed according to the applicable
electrical codes and will be installed by a qualified electrician.
5. Inspection by a State certified electrical inspector and a representative of ERMU.
6. Customers on this rate will not be eligible for the Cycle Air Conditioning Rate Program.
Elk River Municipal Utilities shall provide:
1. All electric energy consumed by the primary electric heating system at$.09 per kWh.
2. The rate is subject to the application of the Power Cost Adjustment (PCA).
3. A meter socket to accommodate the meter in a mutually agreed to location.
4. A meter to measure electricity consumed by the electric heating system.
Approved Adopted DecemberJanuary 132,
2016 Effective January 1,
20176
75
ELK RIVER MUNICIPAL UTILITIES
Commercial All Electric with Ground Source Heat Pump (GSHP)
Available: Within Elk River Municipal Utilities (ERMU) established service territory.
Applicable: To commercial customers having a single meter that includes a GSHP in
excess of 50 kW but no more than 150 kW in aggregated name plate capacity of the
GSHP equipment(condensers and pumps).
Character of Service: AC, 60 cycles, 120/240 volts, three wire, and three-phase.
Special Conditions: This Program is available to commercial customers. A GSHP will
be the only central heating and/or cooling system for the commercial work spaces.
Commercial structures that are classified as Utility and Miscellaneous Group U by the
International Code Council are not eligible for this rate. GSHPs that qualify for this
program will not be interrupted. A GSHP paired with another heating source such as
natural gas, fuel oil, or propane may qualify for the Dual Fuel Program.
Meter to be accessible to our service department at anytime.
To qualify for the special rate, the customer shall provide:
1. The GSHP is the only heat source. Only closed loop GSHPs are eligible for
this rate beginning September 1, 2016.
2. ERMU and the customer will agree on a meter location prior to the meter
socket installation.
3. Commercial customers may have a separate meter to determine the energy
and demand of the GSHP. Electric usage for the non-heating/cooling energy
use of the building may be metered and priced using the appropriate rate
(demand, or non-demand) schedule.
4. Accommodations for a meter and associated wiring installed according to the
applicable electrical codes and will be installed by a qualified electrician.
5. Inspection by a State certified inspector and representative of ERMU.
6. Customers on this rate will not be eligible for the Cycled Air Conditioning or
Dual Fuel Programs.
Rate: Subject to application of Power Cost Adjustment (PCA).
Ground Source Heat PumpService:
Basic Monthly Electric Charge: $30.00 per month
Plus:
Summer Winter
$0.0900/ kWh $0.0900/ kWh
Sales tax is applicable only in summer months.
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.
76
ELK RIVER MUNICIPAL UTILITIES
Commercial All Electric with Ground Source Heat Pump (GSHP)
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:
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' 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 DecemOctober 134, 2016
Effective January 1, 2017September
20, 2016
77
Elk River 2017 Utilities Fee Schedule
Municipal Utilities
ELECTRIC
New Residential Electric Connection - Developer- Lot with ERMU water service $475.00
New Residential Electric Connection - Developer- Lot without ERMU water service $575.00
New Residential Electric Connection - Builder $875.00
New Wire Footages over 200' (per foot) $4.00
New Service Frost Trenching(per foot) $5.00
New Commercial&Industrial Electric Connection 50%
Service Upgrades or Additions for Existing Customers 100%
Minimum Temporary Electric Service Fee- Existing Transformer $150.00
Minimum Temporary Electric Service Fee-Without Existing Transformer $500.00
Street Light-30' Decorative Pole with 6'Arm and Fixture $1,850.00
Street Light-23' Decorative Pole with Traditionaire Fixture $1,500.00
Security Light-Wood Pole with Fixture $975.00
Security Light- Existing Pole $125.00
Pole Attachment Fee(per pole) $6.50
WATER
Water Access Charge=Water Connection Charge+Water Availability Charge $3,528.00
Water Connection Charge(Per Plumbing Unit) - Builder $3,183.00
Water Availability Charge(Per Plumbing Unit) - Developer $345.00
Abandoned Water Service $2,500.00
Hydrant Water Sales- Rental (per week) $50.00
Hydrant Water Sales- Units (per 1000 gallons) $4.00
Deposit for 5/8"Hydrant Meter $150.00
Deposit for 2 1/2"Hydrant Meter $1,000.00
Private Hydrant Maintenance Program Monthly Fee $5.00
ADMINISTRATIVE
Administrative Fee for Continued Submission of Checks After No-Check Notice Given $20.00
Billable Cost of Materials Markup 15%
Billable Labor Markup 55%
Billable Vehicle/Equipment(per employee per hour) $30.00
Electric Service Disconnect/Trip Fee- Meter Technician $50.00
Electric Service Disconnect/Trip Fee- Line Crew $150.00
Energy Audit $150.00
Meter Tampering Fee $250.00
Meter Testing Fee $50.00
NSF Fee $30.00
Penalty Amount 10%
Photocopies (per page) $0.25
Red Tag Handling Fee $20.00
Water Shut-Off Fee $100.00
Adopted by the Utilities Commission on October 11,2016 under authority per Minnesota Statute 412.361
78