5.2 ERMUSR 06-13-2017 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Tom Sagstetter—Conservation and Key Accounts Manager
MEETING DATE: AGENDA ITEM NUMBER:
June 13, 2017 5.2
SUBJECT:
Load Management Transition Plan Update
ACTION REQUESTED:
Consensus on the Load Management Transition Plan as outlined
BACKGROUND:
In February,the Commission approved a moratorium on all the load management programs
except electric vehicle charging. Staff has communicated the program moratorium to building
departments, electricians, and HVAC providers. Staff has been working internally and with Dave
Berg Consulting, LLC to determine a cost effective way to transition away from direct load
control programs while keeping the impacts on existing program participants manageable.
DISCUSSION:
Before developing customer communication material, staff is looking for Commission consensus
on the load management transition plan for each program that ERMU currently has customers
participating in. The transition plan will not impact Commercial Off-Peak Demand Electric
Service, Ground Source Heat Pump, or the Electric Vehicle Charging programs. The direct load
control programs and their associated transition plans are outlined below.
Dispersed Generation Interruptible Electric Service
Current Status: Moratorium (No new customers)
Customers Impacted: 3
Program Transition Plan: No transition plan.
End Date: September, 2018 billing cycle
Financial Impact: No transition costs to ERMU.
Communication Plan: All participating customers were informed verbally in customer
meetings from 2014 through 2016, and received a written notification in February 2017.
Cycled Air Conditioning and Metered Air Conditioning
Current Status: Moratorium (No new customers or transfers)
Customers Impacted: 1,321 Cycled Air and 4 Metered Air Conditioning
Program Transition Plan: The program will be phased out with the customers receiving
credits through the September 2018 billing cycle. The program will end December 31,
2018. The monthly credit customers receive will be phased out over the next two years.
Customers will receive $30 in total credits for 2017, and $15 in total credits for 2018.
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Customers will also be offered a$25 rebate towards the purchase and installation of a
WIFI compatible thermostat. Typical cost of the products range from ($84 to $250)
End Date: September 30, 2018
Financial Impact: Direct financial impact to ERMU will be minimal as a result of
structuring the customer bill credits to coincide with credits received from the wholesale
power provider. Field services will re-allocate existing resources to remove and disable
the radio receiver so there will be no direct financial impact to ERMU. Customers will no
longer receive a monthly credit.
Communication Plan: ERMU will communicate to customers through a letter in July
2017 that the program will end December 31, 2019. In conjunction with the annual rate
tariff approvals, ERMU staff will provide follow-up letters to participants informing them
of the new monthly rate and the pending program end date of December 31, 2019. In
January 2020 the remaining participants will be notified that the meter is going to be
removed, and will also be given a timeframe for when the removal will take place.
Electric Thermal Storage(ETS) Water Heating
Current Status: Moratorium
Customers Impacted: 193
Program Transition Plan: Convert from direct load control to Time of Use (TOU) rates,
and incentivize customers to upgrade to a heat pump water heater. Customers will be
offered a rebate up to $500 towards the purchase and installation of an air source heat
pump water heater with an energy factor greater than 2.0. If the customer converts to the
air source heat pump water heater, they will receive the rebate and be converted to a
Time of Use (TOU)rate for the next billing month. If the customer does not purchase the
air source heat pump water heater(HPWH), they will be converted to the TOU by
October 2018. All rebate applications must be submitted to ERMU on or before
September 30, 2018. The typical cost of a HPWH ranges from ($1,200 to $1,700), and
installation costs vary depending on site conditions; quotes online were $300 to $400.
End Date: Not Applicable
Financial Impact: ERMU will install a new TOU meter for each customer that converts
to the time of use rate. The meter cost per account is $250 - $275. The total cost to
convert all customers meters over two years is estimated to be $53,000. Customers
transferred from Connexus will be added to this program. The TOU rates will be similar
to the rates that are currently in place for the electric vehicle charging program. On peak
energy costs will apply to energy used weekdays between 3 p.m. and 8 p.m. Off- Peak
hours will be all others including weekends and holidays. Rate impacts to the customer
can be minimized based on how the customer utilizes energy with the TOU rates.
Communication Plan: ERMU will communicate to customers in July and August about
program changes. Details on the program changes and rebate forms will be provided in
these letters.
Electric Thermal Storage (ETS) Space Heating
Current Status: Moratorium
Customers Impacted: 6
Program Transition Plan: Convert from direct load control to Time of Use (TOU) rates
and incentivize customers to purchase a WIFI compatible thermostat. Customers will be
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offered a$25 rebate towards the purchase and installation of a WIFI compatible
thermostat. If the customer purchases the WIFI Compatible thermostat,they will receive
the rebate and be converted to a Time of Use (TOU)rate for the next billing month. If the
customer does not purchase a WIFI thermostat, they will be converted to the TOU rate by
October 2018. All rebate applications must be submitted to ERMU on or before
September 30, 2018.
End Date: Not Applicable
Financial Impact: ERMU will install a new TOU meter for each customer that converts
to the time of use rate. The meter cost per account is $250 - $275. The total cost to
convert all customers meters over two years is estimated to be $1,650. Customers
transferred from Connexus will be added to this program. The TOU rates will be similar
to the rates that are currently in place for the electric vehicle charging program. On peak
energy costs will apply to energy used weekdays between 3 p.m. and 8 p.m. Off- Peak
hours will be all others including weekends and holidays. Rate impacts to the customer
can be minimized based on how the customer utilizes energy with the TOU rates.
Communication Plan: ERMU will communicate to customers in July and August about
program changes. Details on the program changes and rebate forms will be provided in
these letters.
Dual Fuel Space Heating
Current Status: Moratorium
Customers Impacted: 192
Program Transition Plan: Convert from direct load control to Time of Use (TOU)rates
and incentivize customers to purchase a WIFI compatible thermostat. Customers will be
offered a$25 rebate towards the purchase and installation of a WIFI compatible
thermostat. If the customer purchases the WIFI Compatible thermostat, they will receive
the rebate and be converted to a Time of Use (TOU)rate for the next billing month. If the
customer does not purchase a WIFI thermostat,they will be converted to the TOU rate by
October 2018. All rebate applications must be submitted to ERMU on or before
September 30, 2018.
End Date: Not Applicable
Financial Impact: ERMU will install a new TOU meter for each customer that converts
to the time of use rate. The meter cost per account is $250 - $275. The total cost to
convert all customers meters over two years is estimated to be $52,800. Customers
transferred from Connexus will be added to this program. The TOU rates will be similar
to the rates that are currently in place for the electric vehicle charging program. On peak
energy costs will apply to energy used weekdays between 3 p.m. and 8 p.m. Off-Peak
hours will be all others including weekends and holidays. Rate impacts to the customer
can be minimized based on how the customer utilizes energy with the TOU rates.
Communication Plan: ERMU will communicate to customers in July and August about
program changes. Details on the program changes and rebate forms will be provided in
these letters.
FINANCIAL IMPACT:
Financial impacts are discussed in each program.
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