5.3 ERMUSR 02-14-2017 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Tom Sagstetter—Conservation and Key Accounts
John Dietz—Chair Manager
Al Nadeau—Vice Chair
Daryl Thompson—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
February 14, 2017 5.3
SUBJECT:
Load Management Program Moratorium
BACKGROUND:
On September 8, 2008 Connexus Energy (Connexus) gave notice to terminate the wholesale
power purchase agreement effective September 30, 2018. As a result of the termination ERMU
has entered into a new wholesale power purchase agreement with Minnesota Municipal Power
Agency(MMPA)beginning October 1, 2018.
There are considerable differences in the wholesale rate structures of the two different suppliers.
As part of the transition to MMPA, ERMU staff is evaluating load management program
changes that are beneficial to the customers and are not subsidized by other customers not
participating in a load management program.
DISCUSSION:
At this time based on the price signals from MMPA and the current and predicted market rates in
the Midwest Independent System Operator(MISO) system, staff is recommending a moratorium
on enrolling new customers in any load management programs other than the electric vehicle
charging program.
Factors that impact the cost basis for the load management programs include; on and off peak
energy(kWh) prices, capacity rates (kW), how each wholesale power supplier charges for
monthly billing peaks (coincidental and non-coincidental), changes in capacity charges in the
MISO market, and cost of equipment.
Staff recommends placing the load management programs, except EV-Charging, into a
moratorium until such time as new pricing for the programs can be determined or an exit plan
from load management can be determined. Staff is researching possible options and exit
strategies with consultants and other utilities that have experienced similar situations.
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ACTION REQUESTED:
Approve a moratorium on all load management programs,with the exception of the Electric
Vehicle Charging program.
ATTACHMENTS:
• Revised ERMU Policy—T.5—Energy Management Electric Service Tariff
IPOIEREI 11
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MORATORIUM EFFECTIVE FEBRUARY 14, 2017 ON ALL OF THE FOLLOWING LOAD CONTROL
PROGRAMS; WITH THE EXCEPTION OF THE ELECTRIC VEHICLE CHARGING PROGRAM.
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
occur any time but will be subject to "on-peak" and "off-peak" energy charges per hour daily. Off
peak hours typically occur between 11 PM and 7 AM and all other hours are considered "on-
peak".
To qualify for the special rate, the customer shall provide:
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MORATORIUM EFFECTIVE FEBRUARY 14, 2017 ON ALL OF THE FOLLOWING LOAD CONTROL
PROGRAMS; WITH THE EXCEPTION OF THE ELECTRIC VEHICLE CHARGING PROGRAM.
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 additional meter socket (furnished by
ERMU) in a mutually agreed upon location.
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 vehicle charging equipment will be
at the summer rate of$0.1363/kWh from May 1 through September 30 and the winter rate
of$0.1209/kWh October 1 through April 30.
2. All "Off-Peak" electric energy consumed by electric vehicle charging equipment will be at
the rate of$0.0596/kWh.
3. The rate is subject to application of the Power Cost Adjustment(PCA).
4. This equipment will be available for charging at applicable rates 24 hours per day and is
not subject to any load control strategies.
5. Metering equipment to customer.
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 $.0450 per kWh.
2. The rate is subject to application of the Power Cost Adjustment (PCA).
3. This equipment will be energized only for 8 off peak hours daily. Additional on-time is
provided on weekend days and holidays.
4. A meter to measure electricity consumed by the ETS space heating system.
5. A load control device which will automatically control ETS space heating system during
on-peak hours.
Electric Thermal Storage (ETS)Water Heating Rate: This Program is available to all ERMU
customers. An ETS water heater is designed with extra storage capacity to provide total
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MORATORIUM EFFECTIVE FEBRUARY 14, 2017 ON ALL OF THE FOLLOWING LOAD CONTROL
PROGRAMS; WITH THE EXCEPTION OF THE ELECTRIC VEHICLE CHARGING PROGRAM.
domestic hot water needs from electricity consumed only during eight off-peak hours daily. Off-
peak hours typically occur between 11 PM and 7 AM. Qualifying ETS configurations may be a
large single tank, dual tanks plumbed in series, or an electric and non-electric tank plumbed in
series with the electric placed on the cold water side. Electric water heater must have an energy
factor of.91 or more and a minimum of 80 gallons of storage capacity.
To qualify for the special rate, the customer shall provide:
1. An ETS water heating system which can be interrupted directly by a single 30 amp rated
relay.
2. Obtain a load control device from ERMU.
3. Accommodations for a meter and load control device and associated wiring installed
according to the applicable electrical codes, and installed by a qualified electrician.
4. Inspection by a State certified electrical inspector and a representative of ERMU.
5. This rate is not available for hot water use in any production process for Commercial and
Industrial users.
Elk River Municipal Utilities shall provide:
1. All electric energy consumed by the ETS water heater at$.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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MORATORIUM EFFECTIVE FEBRUARY 14, 2017 ON ALL OF THE FOLLOWING LOAD CONTROL
PROGRAMS; WITH THE EXCEPTION OF THE ELECTRIC VEHICLE CHARGING PROGRAM.
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 February 14, 2017
December,-1 3,201 6
Effective January 1, 2017
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