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5.4 ERMUSR 12-12-2017 Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Tom Sagstetter—Conservation and Key Accounts Manager MEETING DATE: AGENDA ITEM NUMBER: December 12, 2017 5.4 SUBJECT: 2018 Tariffs ACTION REQUESTED: Approve the proposed 2018 Rates and Tariff Sheets. BACKGROUND: At the November 14, 2017 Utility Commission meeting, the proposed 2018 Budget and applicable rates were presented. Included as part of the proposed 2018 Budget were modest rate increases for electric and water customers. DISCUSSION: Enclosed for your review and consideration are the updated tariff sheets for 2018. The proposed electric rates for 2018 will have modest increases in the monthly electric charge, energy (kWh), and demand (kW) for each customer class. The estimated rate increase for an average customer is approximately 1% based on the existing tariff rates. In 2016 and 2017, ERMU provided a demand credit to customers qualifying for the demand billed service tariff'; customers received a$2 per kW credit in 2016, and a$1 per kW credit in 2017. Beginning in 2018, there will be no credits for customers qualifying for the demand electric service tariff. Factoring in the demand credit of$1/kW qualifying customers the estimated realized rate increase from 2017 to 2018 will range from approximately 3 to 6%. It should be noted that ERMU has not passed along a demand rate increase since January 1, 2015. An additional point of interest supporting this rate increase to demand bills is based on the results of the 2016 Electric Cost of Service Study that identified these customers as being slightly below where they should be for cost recovery. The proposed rate increases for water are approximately 2% on the monthly meter charge and the first tier water use. Tier 2 & 3 water use rates will be unchanged. The average increase for a water customer is estimated to be a 1.85% increase. As part of the transition to multiple billing cycles in 2018,the proposed tariff sheets have also been updated to accommodate for the change; specifically the language regarding the timeframe for the summer and winter rates have been changed to correspond with the monthly billing periods. The summer rate will be applicable during the five monthly billing periods of June - October, and the winter rate will be applicable during the seven monthly billing periods of November—May. Page 1 of 2 117 FINANCIAL IMPACT: N/A ATTACHMENTS: • Proposed 2018 - T.3 - Demand Electric Service Tariff • Proposed 2018 - T.4 - Dispersed Generation/Interruptible Electric Service Tariff • Proposed 2018 - T.5 - Energy Management Electric Service Tariff • Proposed 2018 - T.6 -Non-Demand Electric Service Tariff • Proposed 2018 - T.7 - Off Peak Demand Electric Service Tariff • Proposed 2018 - T.8 - Residential All-Electric Service Tariff • Proposed 2018 - T.9 - Residential Electric Service Tariff • Proposed 2018 - T10 - Street/Security Light Electric Service Tariff • Proposed 2018 - T11 -Non-Demand All Electric Service Tariff • Proposed 2018 - T12 - Water—General Service Tariff • Proposed 2018 - T13 - Ground Source Heat Pump Tariff • Proposed 2018 - T14 - Commercial All Electric with Ground Source Heat Pump Tariff Page 2 of 2 118 ELK RIVER MUNICIPAL UTILITIES Demand Electric Service Available: Within established Elk River Municipal Utilities (ERMU) established service territory.-rate-are-as. 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. Demand Service Rate: Basic Monthly Electric Charge: $70.0075.00 per month. Summer Winter Demand Charge: $16.9417.00 $449912.00 in kW/ month Energy Charge: $ 0.0658.0667 $ 0.0658.0667 in kWh / month 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. Summer Rate: Applicable during the five monthly billing periods of June —October. Winter Rate: Applicable during the seven monthly billing periods of November— May. Rates are subject to application of Power Cost Adjustment (PCA). Sales tax applicable unless exemption is filed. 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 11P ELK RIVER MUNICIPAL UTILITIES Demand Electric Service is greater plus $1.00 per kVA per month of excess transformer capacity requested by customer. 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. 121) ELK RIVER MUNICIPAL UTILITIES Demand Electric Service Approved Adopted December 125, 20176 Effective January 1, 2018-7 121 MORATORIUM EFFECTIVE JUNE 1, 2014 ELK RIVER MUNICIPAL UTILITIES Dispersed Generation (On-Site Generator)/Interruptible Load Program Available: Within established Elk River Municipal Utilities (ERMU) established service territory. 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 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. 177 MORATORIUM EFFECTIVE JUNE 1, 2014 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. 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 December 12, 2017May 20, 2014 Effective January 1, 2018-7 123 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 $41596.0602 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: 124 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 € ) 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$4363.1370/kWh for the five monthly billing periods of June— October, from May 1 through September 30 and the winter rate of$409.1215/kWh for the seven monthly billing periods of November— May. October 1 through April 30. 2. All "Off-Peak" electric energy consumed by electric vehicle charging equipment will be at the rate of$-0596.0602/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 $.0158.0463 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. 195 MORATORIUM EFFECTIVE FEBRUARY 14, 2017 ON ALL OF THE FOLLOWING LOAD CONTROL PROGRAMS; WITH THE EXCEPTION OF THE ELECTRIC VEHICLE CHARGING PROGRAM. 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 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 $.0158.0463 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. 12S MORATORIUM EFFECTIVE FEBRUARY 14, 2017 ON ALL OF THE FOLLOWING LOAD CONTROL PROGRAMS; WITH THE EXCEPTION OF THE ELECTRIC VEHICLE CHARGING PROGRAM. 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. 8. The rate is subject to application of the Power Cost Adjustment (PCA). 9. Cycled AC Program participants will receive a $36 per month credit for 5 summer months for allowing ERMU to interrupt their air conditioners as outlined above. Such payments will be provided in the form of a bill credit during the five monthly billing periods of June — October.forwarded as a billing credit on their May, June, July, August, and September bills. 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 - _ _ _ •_ _ -_ _ -- _ , ._ -, __ , A .e_ , and September bills. Approved Adopted DecemberMarch 123, 2017 Effective January 1, 2018 177 ELK RIVER MUNICIPAL UTILITIES Non-Demand Electric Service Available: Within established Elk River Municipal Utilities (ERMU) established service territory. rate area. 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. Non-Demand Service Rate: Basic Monthly Electric Charge: $25.0026.00 per month Summer Winter $0.1306.1314 / kWh / month $0408-9.1095 / kWh / month 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. Summer Rate: Applicable during the five monthly billing periods of June — October. Winter Rate: Applicable during the seven monthly billing periods of November— May. Rates are subject to application of Power Cost Adjustment (PCA). Sales tax applicable unless exemption is filed. 128 ELK RIVER MUNICIPAL UTILITIES Non-Demand Electric Service Minimum Bill: The Basic Monthly Electric Charge plus $1.00 per kVA per month of excess transformer capacity requested by customer. In the 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. 12q ELK RIVER MUNICIPAL UTILITIES Non-Demand Electric Service Approved Adopted December 123, 20176 Effective January 1, 2018-7 13n ELK RIVER MUNICIPAL UTILITIES Off Peak Demand Electric Service Available: Within established Elk River Municipal Utilities (ERMU) established service territory. 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 any time. Off Peak Demand Service Rate: Basic Monthly Electric Charge: $70.0075.00 per month. Summer Winter Demand Charge: On peak $16.9417.00 $1--19s312.00 in kW/ month Off peak $ 6.166.50 $ 6.'166.50 in kW/ month Energy Charge: $ 0.0690.0697 $ 0.0690.0697 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 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. Summer Rate: Applicable during the five monthly billing periods of June — October. Winter Rate: Applicable during the seven monthly billing periods of November— May. Rates are subject to application of Power Cost Adjustment (PCA). Sales tax applicable unless exemption is filed. 131 ELK RIVER MUNICIPAL UTILITIES Off Peak Demand Electric Service 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. 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 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 123, 20176 Effective January 1, 2018-7 1:12 ELK RIVER MUNICIPAL UTILITIES Residential All Electric Service Available: Within Elk River Municipal Utilities (ERMU) established service territory. 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. Residential All Electric Service Rate: Basic Monthly Electric Charge: $13.0013.50 per month Summer Winter $0.1363.1370/ kWh / month $0.1200.1215 / kWh / month 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. Summer Rate: Applicable during the five monthly billing periods of June — October. Summer rates are subject to sales tax. Winter Rate: Applicable during the seven monthly billing periods of November— May. Winter rates are sales tax exempt. Rates are subject to application of Power Cost Adjustment (PCA). Winter Tax exempt Minimum Bill: The Basic Monthly Electric Charge. 17.1 ELK RIVER MUNICIPAL UTILITIES Residential All Electric Service 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' 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 123, 20176 Effective January 1, 20187 1;14 ELK RIVER MUNICIPAL UTILITIES Residential Electric Service Available: Within Elk River Municipal Utilities (ERMU) 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 any time. Residential Electric Service Rate: Basic Monthly Electric Charge: $13.0013.50 per month Summer Winter $0.1363.1370 / kWh / month $09.1215 / kWh / month 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. Summer Rate: Applicable during the five monthly billing periods of June — October. Winter Rate: Applicable during the seven monthly billing periods of November— May. Rates are subject to application of Power Cost Adjustment (PCA). Sales tax is applicable. 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. 135 ELK RIVER MUNICIPAL UTILITIES Residential 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 123, 20176 Effective January 1, 20187 1:1S 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 /1,400 hours per Character Of Service: 120/240 volts, AC, as available. Street/Security Light Service Type Monthly Rate Per Fixture Low Output ( Q-249 Watt HPS, <9-8-974 Watt LED) $9.00 Medium Output (250-399 Watt HPS, 90 14975-124 Watt LED) $15.00 High Output__ (400 Watt or larger HPS, 150125 Watt or larger $21.00 LED) Rates are subject to sales tax.Sales tax applicable. Ownership of Equipment: Elk River Municipal Utilities will install, own, and operate the lights ing 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, Alan area lightsapplicablc lighting units installed under this schedule shall be equipped with a photo-electric control which will limit the hours of illumination from dusk to dawnburning time to approximately 4,400 hours per yearl. 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 126, 20176 Effective January 1, 2018 1�7 ELK RIVER MUNICIPAL UTILITIES Non-Demand All Electric Service Available: Within established Elk River Municipal Utilities (ERMU) established service territory. 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. 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. Meter must be accessible to our service department at any time. Non-Demand_AII Electric Service Rate: Basic Monthly Electric Charge: $25.0026.00 per month Summer Winter I $0.1306.1314 / kWh / month $0.1089.1095 / 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. Summer Rate: Applicable during the five monthly billing periods of June —October. Summer rates are subject to sales tax unless an exemption is filed. 138 ELK RIVER MUNICIPAL UTILITIES Non-Demand All Electric Service Winter Rate: Applicable during the seven monthly billing periods of November— May. Winter rates are sales tax exempt and may require an exemption to be filed. Rates are subject to application of Power Cost Adjustment (PCA). Minimum Bill: The Basic Monthly Electric Charge plus $1.00 per kVA per month of excess transformer capacity requested by customer. 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. Approved Adopted December 12.My9, 2017 Effective JanuaryApril 1, 20187 1:1P 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). Water 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 $ 8469.04 $X1.81 $3.50 $4.00 Commercial 3/4 $ 10.6310.84 $4,771.81 $3.50 $4.00 Commercial 1 $ 11.8212.06 $4,771.81 $3.50 $4.00 Commercial 1 '/4 $ 13.0113.27 $4,771.81 $3.50 $4.00 Commercial 1 1/2 $4-4.4914.47 $4,771.81 $3.50 $4.00 Commercial 2 $46$419.29 $4,771.81 $3.50 $4.00 Commercial 3 $/11.3612.19 $4,771.81 $3.50 $4.00 Commercial 4 $56.7357.86 $4,771.81 $3.50 $4.00 Commercial 6 $82384.38 $1,771.81 $3.50 $4.00 Commercial 8 $4,771.81 $3.50 $4.00 Q1w11 114.52 Commercial Irrigation Seasonally $48,8419.29 $3.50 $4.00 or Permanently Installed Residential water-exempt from sales tax. Commercial water-subject to sales tax unless exemption is filed. Rate Ticr Definition. Residential Rate Tier Definition: 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. 14n ELK RIVER MUNICIPAL UTILITIES Water-General Commercial Rate Tier Definition: First Tier Rate=0—1.1 X previous year's-_average winter measurement period average monthly consumption. Second Tier Rate= Between 1.1 X previous year's-_average winter measurement period average monthly consumption to 1.1 X previous year's-_average winter measurement period average monthly consumption +40,000 gallons. Third Tier Rate=Above 1.1 X previous year's-average winter measurement period average monthly consumption+40,000 gallons. ,Winter Measurement Period Definition: December—April billing cycles. ---(Formatted:Underline For new customers, if a minimum of 3 winter months previous yearsyear's 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 water 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. Approved Adopted December 123,20175 Effective January 1, 2018.7 141 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. A ground 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 $.09.0909 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 December 123, 20176 Effective January 1, 2018. 149 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 any time. 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. Ground Source Heat Pump Service Rate: Basic Monthly Electric Charge: $30.00 per month Summer Winter $0.0900.0909 / kWh $0.0900.0909 / kWh 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. Summer Rate: Applicable during the five monthly billing periods of June —October. Summer rates are subject to sales tax. 143 ELK RIVER MUNICIPAL UTILITIES Commercial All Electric with Ground Source Heat Pump (GSHP) Winter Rate: Applicable during the seven monthly billing periods of November— May. Winter rates are sales tax exempt. Rates are subject to application of Power Cost Adjustment (PCA). 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 December 125, 20176 Effective January 1, 20187 144