4.1 ERMUSR 03-13-2017 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:
March 13, 2017 4.1
SUBJECT:
Load Management Program Moratorium
BACKGROUND:
In February the Commission approved a moratorium on all the load management programs
except electric vehicle charging. Staff has been working to determine the feasibility of
maintaining the existing programs amid changing market conditions in metering, communication
networks, and wholesale power markets.
DISCUSSION:
The communication network that ERMU is currently utilizing for load management programs
will be obsolete and no longer available to initiate load control. In addition, the wholesale power
markets (MISO)have transformed over time eliminating the economic value of load
management programs that allowed ERMU to decrease demand and shift load to the off peak
hours when energy was at a lower cost.
The lower capacity costs and decreasing rate differential between on peak and off peak hours do
not support the replacement costs of upgrading and maintaining load management programs that
require direct load control.
Currently ERMU has 1,780 customers participating in a direct load control program (Dual Fuel,
Electric Thermal Water Heat Storage, Electric Thermal Space Heat Storage, and Cycled Air
Conditioning). To convert the existing customers to new technology that could be utilized to
initiate load control would cost an estimated $400,000. The estimated recurring annual costs and
rate subsidization for these four programs would be $155,000. The cost to decommission the
existing load management programs, including field staff labor and informational mailings to
customers, builders, and electricians is estimated to be $100,000.
Based on the estimated costs with continuing to support the load control programs and the
current wholesale power market, staff is recommending that the existing load management
programs; Dual Fuel, Electric Thermal Water Heat Storage, Electric Thermal Space Heat
Storage, and Cycled Air Conditioning will be terminated effective September 30, 2018. In the
rOVIEREI 111
Page 1 of 2 NATUR
IN.
Reliable Public
Power Provider POWERED T O SERVE
77
interim, staff will conduct research and perform analysis to determine feasible transition options
for currently participating customers prior to the September 30, 2018 end date.
The proposed Energy Management Electric Service Tariff has been redlined to reflect the 2017
rates for existing customers on the program. The rates, which were approved at the December 13,
2016 Commission meeting were not reflected on the tariff sheet presented and approved at the
January 10,2017 Commission meeting. Also, based on recent changes on the credit for cycled
air conditioners from our wholesale power provider, staff is recommending a reduction in the
cycled air conditioning credit from $9 per month to $6 per month for the 5 months of summer.
ACTION REQUESTED:
Approve the revised Energy Management Electric Service Tariff reflecting the 2017 rates and
reduction to the cycled air conditioning credit.
Approve a termination date of September 30, 2018 for the following load management programs:
Dual Fuel, Electric Thermal Water Heat Storage, Electric Thermal Space Heat Storage, and
Cycled Air Conditioning.
ATTACHMENTS:
• Revised ERMU Policy—T.5—Energy Management Electric Service Tariff
IPOWEREO i1
Page 2 of 2
NATURE
Reliable PWIicA
Power Provider POWERED TO SERVE
78
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$.059655 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:
79
•
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$8.1363/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 $.045850 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
80
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 $.045858 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.
81
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 $69 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 $6@ 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 March 13February 11, 2017
Effective January 1, 2017
82