4.2. ERMUSR 01-09-2018 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Tom Sagstetter—Conservation and Key Accounts Manager
MEETING DATE: AGENDA ITEM NUMBER:
January 9, 2018 4.2
SUBJECT:
Conservation Improvement Programs Policy
ACTION REQUESTED:
Approve the Revised Conservation Improvement Programs Policy
BACKGROUND:
In 2018 ERMU will again offer dozens of incentives to residential and commercial customers.
These rebates will be provided to customers purchasing efficient electric and water equipment.
Included, is ERMU Policy—T.2 Conservation Improvement Programs which has been revised to
reflect the programs that are currently being offered. For 2018 ERMU has added two additional
programs: electric forklift and charging equipment; and commercial food service equipment.
In 2018 ERMU is required to spend a minimum of$502,230 on electric efficiency and load
management programs. ERMU has a total energy saving goal of 4,294,416 kWh. The total
energy savings goal is a combination of customer and electric utility infrastructure savings. The
customer side energy savings goal for 2018 is 2,548,020 kWh. The balance of 1,746,396 kWh
will come from utility infrastructure (distribution,transmission, and generation efficiencies). For
the water utility there are no spending requirements or savings goals, but the Minnesota
Department of Natural Resources and Minnesota Department of Health strongly encourage all
utilities to offer programs to conserve water for future generations.
DISCUSSION:
In 2018 the water conservation programs will remain the same as 2017. The Watersense®
marketing worked well in 2017 and will continue to be used in 2018. The water utility budgeted
$5,000 for water efficiency rebates again in 2018.
On the electric side, electric forklifts and chargers were added along with commercial food
service equipment for 2018. Over the coming months ERMU will be preparing to transition
away from our current CIP aggregator. In 2019 ERMU will need to file the CIP information with
a different aggregator or file the required information independently.
As a result gains in manufacturing LED lighting costs have come down considerably. As a result
of the decreasing costs, ERMU has decreased the rebates on the LED technology. ERMU has
also eliminated all rebates for fluorescent and compact fluorescent lighting in 2018. The final
significant change is the reduction of the maximum rebate amount per project from $50,000 in
2017 to $25,000 in 2018. All rebates will be for equipment purchased and installed in 2018.
There will be no carryover for projects that were started in 2017.
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FINANCIAL IMPACT:
N/A
ATTACHMENTS:
• Revised ERMU Policy—T.2—Conservation Improvement Programs
Page 2 of 2
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Elk River
Municipal Utilities
T.2—Conservation Improvement Programs
1.0 Programs
Elk River Municipal Utilities offers several Conservation Improvement Programs(CIP)for our
customers.Programs include:Below is a list of all of the CIP programs ERMU offers:
• A/C Tune-Up
• Cycled AC,(Moratorium) Formatted:Font:Italic
• Chillers Formatted:Font:11 pt,Italic
• Compressed Air • Formatted:Indent:Left: 0.5', No bullets or
numbering
• Commercial HVAC Rebates
• Commercial Lighting
• Custom Rebates _
• Dispersed GenerationIMoratorium) / Formatted:Font:11 pt
• Energy Management,ProgramsJMoratorium wit!i the exception of EVChargin•Program Formatted:Font:11 pt
• Energy Star Appliance Rebates
Formatted:Font:11 pt
• Energy Star Commercial Kitchen Rebates \.:1Formatted:Font:11 pt,Italic
• Forklifts
\(Formatted:Font:11 pt
• Heat Pumps \ Formatted:Font:11 pt,Italic
• Motor Rebates(Replacement Only) \ Formatted:Font:11 pt
• Variable Frequency Drives ` Formatted:Font:11 pt,Italic
• Water Conservation Rebates Formatted:Font:11 pt
•--Wind Power Purchase
• Whole Building Rebates(Engineering and Design Assistance)
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