5.3 ERMUSR 09-13-2005 Elk River
Municipal Utilities
13069 Orono Parkway phone: 763.441.2020
Elk River, MN 55330 Fax 763.441 8099
' September 2, 2005
To: Elk River Municipal Utilities Commission
Jerry Takle
Jim Tralle
' John Dietz
From: Bryan Adams
' Subject: Target Data Center Facility
' During the last couple of Elk River Municipal Utilities Commission meetings, we have
discussed the implication of the target Data Center Expansion in Elk River. This
proposed facility is currently moving through the Planning Commission and City Council
11111 ith much enthusiasm and support. When the ERMU receives notice to proceed, which is
anticipated on September 15, 2005, we must immediately do the following in order to
meet Targets schedule.
' 1) Award contract top urchase another 15MVA substation transformer at
' either $475,000 or $403,350; depending upon staffs recommendations.
See agenda item 5.2.
2) Award engineering contract to United Services Group (USG) for $20,000
' to design substation expansion for Station 14. The physical expansion
costs are in the $300,000 range.
3) Award engineering contract to USG for approximately $15,000 for
' drafting service to produce construction drawings for the two required
feeders.
4) Secure bids and award contract for 120,000 LF of 1000 KCMIL aluminum
' URD conductor. Approximate cost is $720,000. Specifications are
completed and ready for advertising. This will be awarded at the October
commission meeting.
The necessary construction contracts and further material purchases vv ill follow at a later
date.
Attached is a proposed Tariff for a Large Demand Electric Customer. This Tariff is the
same as our Demand Electric Services Tariff except for the minimum bill calculation.
ELK RIVER MUNICIPAL UTILITIES
' Large Demand Electric Service
Available: Within established Elk River Municipal Utilities Rate areas.
Applicable: Existing Customers, or to new Customers with power requirements greater than
5,000 KW with Dedicated Redundant Electrical Feeders under a contract of standard form. (Not
applicable to resale, standby or auxiliary service.)
' Character of Service: AC, 60 cycles, 277/480 volts, three-phase or Primary Voltage @ 12.46
KV. A customer requiring voltages other than that already established shall be required to provide
' suitable space. Customer shall provide Elk River Municipal Utilities a suitable location for
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.
Meter to be accessible to our service department at anytime.
' Rate:
Subject to application of Cost Adjustment
Demand Service:
Account Maintenance Charge: $35.00 per month
Summer Winter
Demand Charge: $11.25 $8.50 in KW/month
Energy Charge: $ 0 0418 $0.0418 in KW/month
' Minimum Bill: Monthly billing demand x demand charge + monthly energy usage x energy
charge or 75% request demand capacity x demand charge + monthly energy usage x energy
charge, whichever is greater.
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ELK RIVER MUNICIPAL UTILITIES
Large Demand Electric Service
' Summer: The summer rate shall apply to the Customer's use from May I through September 30
' Winter: The winter rate shall apply to the Customer's use from October 1 through April 30.
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
' 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 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 50KW or more, or at the option of Elk River Municipal Utilities
' for loads of less than 50KW, 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%to 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 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.
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
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.
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Approved Adopted December 13,2004
11lccii e January I,2005