4.5. SR 12-17-2018 EOty1� ,.,�� Request for Action
River
To Item Number
Mayor and City Council 4.5
Agenda Section Meeting Date Prepared by
Consent December 17, 2018 Amanda Bednar,Environmental Coordinator
Item Description Reviewed by
Clean Energy Choice Participation Agreement Cal Portner, City Administrator
Reviewed by
Action Requested
Approve,by motion, the Clean Energy Choice Participation Agreement for 2019.
Background/Discussion
In 2019, the City of Elk River will be purchasing 100% renewable energy for all city buildings. ERMU is
able to offer this option to customers as a result of joining MMPA. Previously the city's energy portfolio
was 17% renewable. The estimated cost is about$6,000 which was distributed between several city
budgets that cover utility costs.
The City is required to sign a contract to participate in this program.
Financial Impact
No financial impacts, the increase was included in various department budgets in 2019.
Attachments
■ Clean Energy Choice for Business Participation Agreement
The Elk River Vision
A PehoMing community 2a itb revolutionary and spirited resourcefulness, exceptional POWERED By
service, and community engagement that encourages and inspires prosperity INAWRE1
CLEAN ENER',GY
Elk,, Rive. CHOICE
Municipal Utilities BUS
CLEAN ENERGY CHOICE FOR BUSINESS
PARTICIPATION AGREEMENT
This Clean Energy Choice for Business Participation Agreement ("Agreement"), between the
City of Elk River, Minnesota ("Customer") and Elk River Municipal Utilities ("ERMU"),
executed as of January 1, 2019_, provides for the participation of Customer in
ERMU's Clean Energy Choice for Business program.
1. ERMU will provide Customer with energy from renewable sources, as defined in
Minnesota Statues Section 216B.169 1, beginning with electricity used as of January 1,
2019.
2. Customer acknowledges that participation in the Clean Energy Choice for Business
program is on a calendar year basis. Customer agrees to participate in the Clean Energy
Choice for Business program from the date identified in Section I above through the end
of the calendar year. Customer further agrees that participation in the Clean Energy
Choice for Business program will continue for subsequent calendar years until Customer
notifies ERMU in writing prior to December I of a given year that it desires to stop
participating in the Clean Energy Choice for Business program for subsequent years.
3. Customer agrees to pay an incremental charge of$0.001 per kWh over and above
ERMU's regular rates as a premium for renewable energy. This premium applies to all
purchases of electricity by Customer from ERMU in excess of the then-current renewable
energy standard in the state of Minnesota. The current renewable energy standard is
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17%. Therefore, a customer with energy usage of 10,000 kWh in a given month would
pay an incremental charge of$8.30 for participation in Clean Energy Choice for Business
for that month, as shown in the formula below:
[10,000 kWh x (100% - 17%) x $0.001 = $8.30]
4. ERMU and Customer agree that the per kilowatt-hour price for participation in the Clean
Energy Choice for Business program will not change during the initial calendar year of
program participation as shown in Section 1 above. ERMU will communicate program
pricing changes, if any, to Customer by November 1 for the subsequent program year.
5. The renewable energy provided by ERMU will be allocated from ERMU's wholesale
power supplier in the form of renewable energy credits retired specifically for Customer's
energy usage and will be in excess of the renewable energy credits retired to satisfy
ERMU's renewable energy standard obligations.
6. This Agreement applies to all accounts and meters of Customer served by ERMU.
Customer authorizes the release of necessary information to the ERMU's wholesale
power supplier (MMPA) for the purpose of monthly reporting of kWh usage.
7. Notices required to be sent under this Agreement shall be sent to the following addresses:
For Customer: For ERMU:
Elk River Municipal Utilities Elle River Municipal Utilities
13065 Orono Parkway 13069 Orono Parkway, P.O. Box 430
Elk River, MN 55330 Elle River, Minnesota 55330
8. Any changes to this Agreement must be made in writing and signed by both Customer
and ERMU.
Customer ERMU
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