2.3 ERMUSR 02-13-2018 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Jennie Nelson—Customer Service Manager
MEETING DATE: AGENDA ITEM NUMBER:
February 13, 2018 2.3
SUBJECT:
Demand All Electric Service Tariff
ACTION REQUESTED:
Approve the 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. We also have a rate that works that way for non-demand commercial customers, but
we do not have a rate for demand billed customers as we were never aware of a customer that
was eligible.
DISCUSSION:
We were recently informed that we have a customer who may qualify for an All Electric
Demand rate. The proposed tariff is exactly the same as the Demand Electric Service tariff,with
the exception of some additional language regarding sales tax and exemptions. We may require
customers to provide and ST3 exemption form to qualify as stated in the tariff.
FINANCIAL IMPACT:
None
ATTACHMENTS:
• Proposed ERMU Policy—T15—Demand All Electric Service Tariff
Page 1 of 1
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ELK RIVER MUNICIPAL UTILITIES
Demand All Electric Service
Available: Within Elk River Municipal Utilities (ERMU) established service territory.
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: $75.00 per month.
Summer Winter
Demand Charge: $17.00 $12.00 in kW/month
Energy Charge: $ 0.0667 $ 0.0667 in kWh/month
Summer Rate: Applicable during the five monthly billing periods of June—October.
Summer rates are subject to sales tax unless an exemption is filed.
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: 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
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ELK RIVER MUNICIPAL UTILITIES
Demand All Electric Service
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.
Approved Adopted February 13, 2018
Effective February 13, 2018
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