2.7 ERMUSR 05-09-2017 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Jennie Nelson—Customer Service Manager
MEETING DATE: AGENDA ITEM NUMBER:
May 9, 2017 2.7
SUBJECT:
Non-Demand All Electric Service Tariff
ACTION REQUESTED:
Approve the proposed Non-Demand All Electric Service Tariff
BACKGROUND:
Elk River Municipal Utilities (ERMU)has a residential rate for those who use all electric heat.
Customers who are on that rate should not be taxed in the winter according to the State of
Minnesota. ERMU does not have a rate that works that way for commercial customers.
DISCUSSION:
We currently have a few apartments that are using electric heat for common areas. They are
technically a commercial operation and should be on the non-demand rate; however the State of
Minnesota has said they qualify for the winter tax exemption. Staff has created a rate that
operates the exact same way as the current non-demand rate, with the exception of a winter tax
exemption. We may require customers to provide an ST3 exemption form to qualify as stated in
the tariff.
FINANCIAL IMPACT:
None
ATTACHMENTS:
• Proposed T11 —Non-Demand All Electric Service Tariff
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ELK RIVER MUNICIPAL UTILITIES
Non-Demand All 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 any time.
Rate: Subject to application of Power Cost Adjustment (PCA).
Non-Demand Service:
Basic Monthly Electric Charge: $25.00 per month
Plus:
Summer Winter
$0.1306 / kWh / month $0.1089 / kWh / month
Summer— Sales tax applicable unless an exemption is filed
Winter—Tax exempt - may require an exemption to be 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.
A4
ELK RIVER MUNICIPAL UTILITIES
Non-Demand All 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 May 9, 2017
Effective April 1, 2017