4.1 ERMUSR 08-14-2018 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Tom Sagstetter—Conservation and Key Accounts Manager
MEETING DATE: AGENDA ITEM NUMBER:
August 14, 2018 4.1
SUBJECT:
Energy Management Programs
ACTION REQUESTED:
Approve a sunset date of December 31, 2023 for the Dual Fuel, Electric Thermal Storage Water,
and Electric Thermal Storage Space Heating Programs.
BACKGROUND:
The Dual Fuel, and Electric Thermal Storage (ETS) Water&ETS Space Heating energy
management programs were put into moratorium February 2017 as a result of the MISO market
changes, obsolete communication technology, and wholesale power provider changes. At this
time,the costs of upgrading the existing communication equipment is greater than any savings
ERMU would recognize through peak reduction in the current MISO market and the billing
practices of the new wholesale power provider rates.
At the July 10 Commission Meeting, staff was directed to work on a plan to help customers
transition away from the current programs. The Commission and staff discussed the option of
maintaining the current program for existing customers with a sunset date of 3 to 5 years. During
the sunset period,the rates would be increased to reach parity with the standard general service
rate. Based on the substantial capital investments customers may have in their existing systems,
the Commission and staff had consensus that the 5 year sunset period would be best.
DISCUSSION:
To communicate the end of the programs, staff will provide an annual notification to customers
participating in the Dual Fuel, and ETS Water and Space Heating programs about the end date of
December 31, 2023, and the need for customers to evaluate other options for space and/or water
heating needs. The sunset period will be offered to any person purchasing or renting a property
that is participating in an affected Energy Management program until the end date of December
31, 2023. As part of the annual communication, customers will be informed of any rate increases
to the program they are participating in and the end date of December 31, 2023.
Staff will also continue to research possible new programs during the sunset period that will
provide benefit to the participating customers and ERMU. Any replacement Energy Management
programs created will be marketed, communicated and made available to all ERMU residential
customers.
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