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2.3. ERMUSR 01-08-2019 Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Tom Sagstetter—Conservation and Key Accounts Manager MEETING DATE: AGENDA ITEM NUMBER: January 8, 2019 2.3 SUBJECT: 2019 Schedule of Rates ACTION REQUESTED: Approve the revisions and additions to the 2019 Schedule of Rates BACKGROUND: In December,the 2019 Annual Business Plan was approved including the 2019 Schedule of Rates & Fees. On the approved rate sheets there were inconsistencies between the Terms of Payment language and the ERMU Service Policies that were revised as a result of multiple billing cycle changes. Additionally,the 2019 Annual Business Plan included one new rate and two clean energy programs that were not finalized at the time of approval. These items are being brought back for Commission approval. DISCUSSION: Staff is proposing to replace the Terms of Payment section in the attached individual rate sheets with a Billing and Terms of Payment section. The revised text will direct customers to the Service Policies for very specific information on billing due dates, penalties, and delinquent notices. This change eliminates the inaccurate information and eliminates the redundancy by directing customers to a single document. The Large Demand Electric Service Rate, along with the two new clean energy programs have been completed. The new rate and clean energy programs were included in the 2019 Budget. The Large Demand Electric Service Rate will be available for customers that receive primary service and have demand greater than 1 MW; it will also serve as an economic development tool to attract large electric use customers. The clean energy choice programs are a result of incorporating the Minnesota Municipal Power Agency Clean Energy Choice program into the portfolio of ERMU programs. These programs allow both residential and commercial customers to purchase renewable energy for an additional fee. Residential customers are able to select from three different participation levels and fees, and commercial customers are able to participate by signing a contract and agreeing to pay an incremental fee per kWh used on a monthly basis. ATTACHMENTS: Schedule of Rates • Proposed-Residential Clean Energy Choice Program Rate • Proposed- Commercial Clean Energy Choice Program Rate Page 1 of 2 34 • Proposed- Large Demand Electric Service Rate • Revised-Residential All Electric Service Rate • Revised-Residential Electric Service Rate • Revised -Non-Demand All Electric Service Rate • Revised -Non-Demand Electric Service Rate • Revised- Demand All Electric Service Rate • Revised - Demand Electric Service Rate • Revised - Off-Peak Demand Electric Service Rate • Revised- Commercial All Electric with Ground Source Heat Pump Service Rate • Revised- Ground Source Heat Pump Program Rate • Revised - Electric Vehicle Charging Rates • Revised- Street/Security Light Service Rate • Revised- Water Service Rates • ERMU Policy—A.1 — Service Policies Policy—for reference only • Section 2.0 Billing Due Dates • Section 3.0 Penalties and Delinquent Notices Page 2 of 2 35 Elk River Municipal Utilities RESIDENTIAL CLEAN ENERGY CHOICE PROGRAM RATE Available:Within Elk River Municipal Utilities (ERMU) established service territory. Applicable:To ERMU customers receiving service under another residential electric rate. This Program is available to residential customers choosing to purchase renewable energy. Customers' will have the option to purchase 50, 75 or 100 percent of the monthly energy consumption from renewable energy sources. The customer shall agree to: 1. Complete an application-through the online registration process,or returning a printed copy to ERMU. 2. Clearly indicate the participation level and the additional monthly charge applicable to the 50, 75 or 100 percent subscription level desired. 3. Provide notice to Elk River Municipal Utilities to cancel participation. Elk River Municipal Utilities shall provide: 1. Monthly billing statement with the Clean Energy Choice participation level clearly identified. 2. The applicable incremental cost per participation level will be identified and added to the billing statement. Participation Level% Monthly Charge 50 $1 75 $2 100 $3 Adopted January 8, 2019 Effective January 1, 2019 Page 1 of 1 36 Elk River Municipal Utilities COMMERCIAL CLEAN ENERGY CHOICE PROGRAM RATE Available:Within Elk River Municipal Utilities (ERMU) established service territory. Applicable:To ERMU customers receiving service under another commercial electric rate. This Program is available to commercial customers choosing to purchase renewable energy. Customers' will be required to participate for one calendar year and the applicable Clean Energy Choice incremental charge will apply to all energy sold in the calendar year. The customer shall agree to: 1. Contact ERMU staff to discuss program participation. 2. Sign a contractual agreement for one calendar year prior to December 1 for participation in the upcoming year. 3. Continue to participate in the program annually until customer provides written notice of cancelation to ERMU. 4. Provide written notice of cancelation in the program to ERMU prior to December 1 of a given year for the upcoming year. Elk River Municipal Utilities shall provide: 1. Estimate of annual incremental charge for participating in program. 2. Clean Energy Choice incremental charge per kWh is$0.001. 3. The incremental charge applies to all kWh purchases in excess of the Wholesale Renewable Energy Standard. 4. The incremental charge will be calculated based on actual kWh consumed in the billing period. 5. The incremental charge will be calculated as follows: [kWh consumed X(100%-Wholesale Renewable Energy Standard)X$0.001] 6. Monthly billing statement with the Clean Energy Choice incremental charge identified. 7. Program price changes by November 1 for the coming year. Adopted January 8, 2019 Effective January 1, 2019 Page 1 of 1 37 Elk River Municipal Utilities LARGE INDUSTRIAL DEMAND ELECTRIC SERVICE RATE 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 1 MW.A Customer account with a billing demand of less than 1 MW for 12 consecutive months may be switched to the Demand Electric Service Rate. The Customer accounts shall be in compliance with all policies, procedures,safety requirements, and shall be taken through one meter. Not applicable to resale,standby or auxiliary service. Character Of Service:3-Phase Primary,3-phase, 7,200/12,470 volt,AC,60 cycles. Special Conditions:Customer must provide a location suitable for the installation of a utility metering cabinet. Customer will be responsible for providing suitable wire and connection in the utility owned metering cabinet. One primary meter and cabinet 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; loads will not be aggregated ERMU equipment and metering must be accessible to ERMU 24 hours per day. Demand Service Rate: Basic Monthly Electric Charge: $100.00 per month. Summer Winter Demand Charge: $15.00 $11.00 in kW/month Energy Charge: $0.0644 $0.0644 in kWh/month Summer Rate:Applicable during the five monthly billing periods of June—October. Winter Rate:Applicable during the seven monthly billing periods of November—May. Rates are subject to application of Power Cost Adjustment (PCA). Sales tax applicable unless exemption is filed. 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. Page 1 of 2 38 Large Industrial Demand Electric Service Rate 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 ERMU's system so that the load will not unduly interfere with service on ERMU's lines. 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 ERMU. Power Factor Adjustment: 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 ERMU's 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 ERMU's option, the power factor may be corrected at the Customer's expense. Billing and Terms of Payment:See ERMU Service Policies Policy(Billing Due Dates, and Penalties and Delinquent Notices.) 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 ERMU Policies and rules. 3. Extensions made for service under this schedule are subject to the provisions of ERMU's 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. Adopted January 8, 2019 Effective January 1, 2019 Page 2 of 2 39 Elk River Municipal Utilities RESIDENTIAL ALL ELECTRIC SERVICE RATE Available:Within Elk River Municipal Utilities (ERMU) established service territory. Applicable:To single-family residences and individually metered apartments for all domestic purposes with electric energy as a sole source of heating and lighting and when all service is supplied through a single meter, provided ratings of individual single-phase motors do not exceed five (5) horsepower. Character of Service:AC, 60 cycles, 120/240 volt,three wire, single-phase. Special Conditions: Residential service to a multiple dwelling or apartment house through a single meter is allowed for existing services only. Service under this rate schedule shall not be sub-metered and resold to the individual tenants on the basis of usage and the cost of electric service to the tenant must be furnished without specific charge or price which varies with the quantity of energy used. Any apartment or dwelling unit which has separate permanent kitchen facilities shall be considered as one single family private residence. Meter to be accessible to our service department at any time. Residential All Electric Service Rate: Basic Monthly Electric Charge: $13.50 per month Summer Winter $0.1270/ kWh/month $0.1160/ kWh/month Summer Rate: Applicable during the five monthly billing periods of June—October. Summer rates are subject to sales tax. Winter Rate:Applicable during the seven monthly billing periods of November—May. Winter rates are sales tax exempt. Rates are subject to application of Power Cost Adjustment (PCA). Minimum Bill: The Basic Monthly Electric Charge. Terms of Payment: Bills arc due and payable upon receipt and are considered 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 arc not paid by the due date. Billing and Terms of Payment:See ERMU Service Policies Policy(Billing Due Dates, and Penalties and Delinquent Notices.) Page 1 of 2 40 Residential All Electric Service Rate Terms and Conditions: 1. Usage may be fractionalized on the actual days of service for application of a change in rate or changing from summer to winter or from winter to summer rates. 2. Service will be furnished pursuant to Elk River Municipal Utilities' customer service 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. Adopted December 11, 2018 Revised January 8, 2019 Effective January 1, 2019 Page 2 of 2 41 Elk River Municipal Utilities RESIDENTIAL ELECTRIC SERVICE RATE Available:Within Elk River Municipal Utilities (ERMU) established service territory. Applicable:To single-family residences and individually metered apartments for all domestic purposes when all service is supplied through a single meter, provided ratings of individual single-phase motors do not exceed five (5) horsepower. Character of Service:AC, 60 cycles, 120/240 volt,three wire, single-phase. Special Conditions: Residential service to a multiple dwelling or apartment house through a single meter is allowed for existing services only. Service under this rate schedule shall not be sub-metered and resold to the individual tenants on the basis of usage and the cost of electric service to the tenant must be furnished without specific charge or price which varies with the quantity of energy used. Any apartment or dwelling unit which has separate permanent kitchen facilities shall be considered as one single family private residence. Meter to be accessible to our service department at any time. Residential Electric Service Rate: Basic Monthly Electric Charge: $13.50 per month Summer Winter $0.1270/kWh/month $0.1160/kWh/month Summer Rate:Applicable during the five monthly billing periods of June—October. Winter Rate:Applicable during the seven monthly billing periods of November—May. Rates are subject to application of Power Cost Adjustment(PCA). Sales tax is applicable. Minimum Bill: Basic Monthly Electric Charge. Terms of Payment: Bills arc duc and payable upon receipt and arc considered 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. Billing and Terms of Payment:See ERMU Service Policies Policy(Billing Due Dates, and Penalties and Delinquent Notices.) Page 1 of 2 42 Residential Electric Service Rate Terms and Conditions: 1. Usage may be fractionalized on the actual days of service for application of a change in rate or changing from summer to winter or from winter to summer rates. 2. Service will be furnished pursuant to Elk River Municipal Utilities' customer service 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. Adopted December 11, 2018 Revised January 8, 2019 Effective January 1, 2019 Page 2 of 2 43 Elk River Municipal Utilities NON-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 demands of less than 50 kW for the previous 12 consecutive months if applicable. When the Customer achieves an actual maximum demand of 50 kW or greater,the Customer will be placed on the Demand Electric Service rate in the next billing cycle. The Customer accounts shall be in compliance with all policies, procedures, and safety requirements, and shall be taken through one meter. Rating of individual single-phase motors and other single-phase power and heating units served under this schedule shall not exceed ten (10) horsepower(or 7.355 kW) except by special permission. (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 by Elk River Municipal Utilities 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. If additional meters and services are requested by the customer, each shall be treated as a separate customer and billed individually. Installation of Demand Meter:At the option of Elk River Municipal Utilities, a demand meter may be installed on any customer whose monthly usage exceeds 15,000 kWh. Meter must be accessible to our service department at any time. Non-Demand All Electric Service Rate: Basic Monthly Electric Charge: $30.00 per month Summer Winter $0.1230/kWh/month $0.1030/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. Page 1 of 2 44 Non-Demand All Electric Service Rate Rates are subject to application of Power Cost Adjustment (PCA). Minimum Bill:The Basic Monthly Electric Charge plus $1.00 per kVA per month of excess transformer capacity requested by customer. In case of equipment having abnormally low annual utilization factors or unusual operating characteristics,special minimum charges may be prescribed by Elk River Municipal Utilities. Power Factor Adjustment:The rates set forth in this schedule are based on the maintenance by the Customer of a power factor of not less than 95% at all times. If the power factor, as measured by the 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. 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' lines. 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. In addition, Customers who fail to provide adequate corrective equipment shall be required to own and maintain their own transformers. Terms of Payment: Bills are due and payable upon receipt and arc considered 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 arc not paid by the due date. Billing and Terms of Payment:See ERMU Service Policies Policy(Billing Due Dates, and Penalties and Delinquent Notices.) Terms and Conditions: 1. Usage may be fractionalized on the actual days of service for application of a change in rate or changing from summer to winter or from winter to summer rates. 2. Service will be furnished under the 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 rate 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. Adopted December 11, 2018 Revised January 8, 2019 Effective January 1, 2019 Page 2 of 2 45 Elk River Municipal Utilities NON-DEMAND ELECTRIC SERVICE RATE 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 demands of less than 50 kW for the previous 12 consecutive months if applicable. When the Customer achieves an actual maximum demand of 50 kW or greater,the Customer will be placed on the Demand Electric Service rate in the next billing cycle. The Customer accounts shall be in compliance with all policies, procedures, and safety requirements, and shall be taken through one meter. Rating of individual single-phase motors and other single-phase power and heating units served under this schedule shall not exceed ten (10) horsepower(or 7.355 kW)except by special permission. (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 by Elk River Municipal Utilities 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. If additional meters and services are requested by the customer, each shall be treated as a separate customer and billed individually. Meter must be accessible to our service department at any time. Non-Demand Service Rate: Basic Monthly Electric Charge: $30.00 per month Summer Winter $0.1230/kWh/month $0.1030/kWh/month Summer Rate:Applicable during the five monthly billing periods of June—October. Winter Rate:Applicable during the seven monthly billing periods of November—May. Rates are subject to application of Power Cost Adjustment(PCA). Sales tax applicable unless exemption is filed. Page 1 of 2 46 Non-Demand Electric Service Rate Minimum Bill:The Basic Monthly Electric Charge plus$1.00 per kVA per month of excess transformer capacity requested by customer. In the case of equipment having abnormally low annual utilization factors or unusual operating characteristics, special minimum charges may be prescribed by Elk River Municipal Utilities. Power Factor Adjustment:The rates set forth in this schedule are based on the maintenance by the Customer of a power factor of not less than 95% at all times. If the power factor, as measured by the 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. 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' lines. 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. In addition, Customers who fail to provide adequate corrective equipment shall be required to own and maintain their own transformers. Terms of Payment: are considered 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 arc not paid by the due date. Billing and Terms of Payment:See ERMU Service Policies Policy(Billing Due Dates, and Penalties and Delinquent Notices.) Terms and Conditions: 1. Usage may be fractionalized on the actual days of service for application of a change in rate or changing from summer to winter or from winter to summer rates. 2. Service will be furnished under the 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 rate 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. Installation of Demand Meter: At the option of Elk River Municipal Utilities, a demand meter may be installed on any customer whose: monthly usage exceeds 15,000 kWh. Adopted December 11, 2018 Revised January 8, 2019 Effective January 1, 2019 Page 2 of 2 47 Elk River Municipal Utilities DEMAND ALL ELECTRIC SERVICE RATE 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: $15.50 $11.50 in kW/month Energy Charge: $0.0651 $0.0651 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 Page 1 of 2 48 Demand All Electric Service Rate 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 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. the due date noted the bill.There will be a ten (10) percent late payment charge added to all accounts that arc not paid by the due date. Billing and Terms of Payment:See ERMU Service Policies Policy(Billing Due Dates,and Penalties and Delinquent Notices.) 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. Adopted December 11, 2018 Revised January 9, 2019 Effective January 1, 2019 Page 2 of 2 49 Elk River Municipal Utilities DEMAND ELECTRIC SERVICE RATE 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: $15.50 $11.50 in kW/month Energy Charge: $0.0651 $0.0651 in kWh/month Summer Rate:Applicable during the five monthly billing periods of June—October. Winter Rate:Applicable during the seven monthly billing periods of November—May. Rates are subject to application of Power Cost Adjustment(PCA). Sales tax applicable unless exemption is filed. Page 1 of 2 50 Demand Electric Service Rate 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 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. the due date noted the bill.There will be a ten (10) percent late payment charge added to all accounts that arc not paid by the due date. Billing and Terms of Payment:See ERMU Service Policies Policy(Billing Due Dates,and Penalties and Delinquent Notices.) 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. Adopted December 11, 2018 Revised,January 8, 2019 Effective January 1, 2019 Page 2 of 2 51 Elk River ----- Municipal Utilities OFF-PEAK DEMAND ELECTRIC SERVICE RATE 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 location of 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. Meter to be accessible to our service department at any time. Off Peak Demand Service Rate: Basic Monthly Electric Charge: $75.00 per month. Summer Winter Demand Charge: On-Peak $15.50 $11.50 in kW/month Off-Peak $6.25 $6.25 in kW/month Energy Charge: $0.0680 $0.0680 in kWh/month On-Peak Demand: Actual demand during On-Peak Periods On-Peak Period: 3:00 PM -10:00 PM weekdays Off-Peak Demand: Actual demand during Off-Peak Periods less On-Peak Demand Off-Peak Period: All non On-Peak Periods Summer Rate:Applicable during the five monthly billing periods of June—October. Winter Rate:Applicable during the seven monthly billing periods of November—May. Page 1 of 3 52 Off-Peak Demand Electric Service Rate Rates are subject to application of Power Cost Adjustment (PCA). Sales tax applicable unless exemption is filed. 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 greater than the valve 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. 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. In addition, Customers who fail to provide adequate corrective equipment shall be required to own and maintain their own transformers. 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 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%divided by the measured power factor, or at Elk River Municipal Utilities' option,the power factor may be corrected at the Customer's expense. rioted the bill.There will be a ten(10) percent late payment charge added to all accounts that arc not paid by the due date. Billing and Terms of Payment:See ERMU Service Policies Policy(Billing Due Dates,and Penalties and Delinquent Notices.) 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. Page 2 of 3 53 Off-Peak Demand Electric Service Rate 5. Exceptions by management approval only. Adopted December 11, 2018 Revised January 8, 2019 Effective January 1, 2019 Page 3 of 3 54 Elk River -*— Municipal Utilities COMMERCIAL ALL ELECTRIC WITH GROUND SOURCE HEAT PUMP SERVICE RATE Available:Within Elk River Municipal Utilities (ERMU)established service territory. Applicable:To commercial customers having a single meter that includes a ground source heat pump (GSHP) in excess of 50 kW but no more than 150 kW in aggregated name plate capacity of the GSHP equipment(condensers and pumps). Character of Service:AC, 60 cycles, 120/240 volts,three wire,and three-phase. Special Conditions:This Program is available to commercial customers.A GSHP will be the only central heating and/or cooling system for the commercial work spaces. Commercial structures that are classified as Utility and Miscellaneous Group U by the International Code Council are not eligible for this rate. GSHPs that qualify for this program will not be interrupted.A GSHP paired with another heating source such as natural gas,fuel oil,or propane may qualify for the Dual Fuel Program. To qualify for the special rate,the customer shall provide: 1. The GSHP is the only heat source. Only closed loop GSHPs are eligible for this rate beginning September 1,2016. 2. ERMU and the customer will agree on a meter location prior to the meter socket installation. 3. Commercial customers may have a separate meter to determine the energy and demand of the GSHP. Electric usage for the non-heating/cooling energy use of the building may be metered and priced using the appropriate rate(demand,or non-demand)schedule. 4. Accommodations for a meter and associated wiring installed according to the applicable electrical codes and will be installed by a qualified electrician. 5. Inspection by a State certified inspector and representative of ERMU. 6. Customers on this rate will not be eligible for the Cycled Air Conditioning or Dual Fuel Programs. Meter to be accessible to our service department at any time. Ground Source Heat Pump Service Rate: Basic Monthly Electric Charge: $30.00 per month Summer Winter $.0909/kWh $.0909/kWh Summer Rate:Applicable during the five monthly billing periods of June—October. Summer rates are subject to sales tax. Winter Rate:Applicable during the seven monthly billing periods of November—May.Winter rates are sales tax exempt. Page 1 of 2 55 Commercial All Electric with Ground Source Heat Pump Service Rate Rates are subject to application of Power Cost Adjustment(PCA). Minimum Bill: Basic Monthly Electric Charge. Terms of Payment: Bills arc due and payable upon receipt and arc considered 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 arc not paid by the due date. Billing and Terms of Payment:See ERMU Service Policies Policy (Billing Due Dates, and Penalties and Delinquent Notices.) Terms and Conditions: 1. Usage may be fractionalized on the actual days of service for application of a change in rate, or changing from summer to winter or from winter to summer rates. 2. Service will be furnished pursuant to 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. Adopted December 11, 2018 Revised January 8, 2019 Effective January 1, 2019 Page 2 of 2 56 Elk River Municipal Utilities GROUND SOURCE HEAT PUMP PROGRAM RATE Available:Within Elk River Municipal Utilities(ERMU)established service territory. Applicable:To single family residences,non-demand and demand customers receiving service under another rate,who add a second meter for any of the following controlled loads: Ground Source Heat Pump Rate: This Program is available to residential and commercial customers. A ground source heat pump(GSHP)is a central heating and/or cooling system for residential living spaces or commercial work spaces. Residential living spaces will meet all the applicable Minnesota state building codes. Commercial structures that are classified as Utility and Miscellaneous Group U by the International Code Council are not eligible for this rate.This program is available to residential or commercial customers with a GSHP as their sole heat source. GSHP5 that qualify for this program will not be interrupted. A GSHP paired with another heating source such as natural gas,fuel oil,or propane may qualify for the Dual Fuel program. To qualify for the special rate,the customer shall provide: 1. The GSHP is the only heat source. Only closed loop GSHPs are eligible for this rate beginning January 1,2016. 2. ERMU and the customer will agree on a meter location prior to the meter socket installation. 3. Commercial customers may have a separate meter to determine the load of the heat pumps. Electric usage for the remainder of the building will be metered and priced using the appropriate rate(Demand or Non-Demand). 4. Accommodations for a meter and associated wiring installed according to the applicable electrical codes and will be installed by a qualified electrician. 5. Inspection by a State certified electrical inspector and a representative of ERMU. 6 Customers on this rate will not be eligible for the Cycle Air Conditioning Rate Program. • Formatted:Indent:Left: 0.5", No bullets or numbering Elk River Municipal Utilities shall provide: 1. All electric energy consumed by the primary electric heating system at$.0909 per kWh. 2. The rate is subject to the application of the Power Cost Adjustment(PCA). 3. A meter socket to accommodate the meter in a mutually agreed to location. 4. A meter to measure electricity consumed by the electric heating system. Adopted December 11,2018 Revised January 8,2019 Effective January 1,2019 Page 1 of 1 57 Elk River Municipal Utilities ELECTRIC VEHICLE CHARGING RATES Residential and Commercial Electric Vehicle Charging Rate Available: Within Elk River Municipal Utilities (ERMU) established service territory. Applicable:To single family residences, non-demand and demand customers receiving service under another rate. Electric Vehicle Charging Rate:This Program is available to all customers of Elk River Municipal Utilities (ERMU)that own an electrically powered vehicle used for on road transportation. Charging of the vehicle can occur any time but will be subject to on-peak and off-peak energy charges per hour daily. Off peak hours typically occur between 10 PM and 10 AM and all other hours arc considered on peak. On-peak hours are Monday through Friday between 10 AM and 10 PM. Off-peak hours are Monday through Friday between 10 PM and 10 AM,Saturdays, Sundays, and the following holidays ( New Year's Day, Memorial Day, Independence Day, Labor Day,Thanksgiving Day, and Christmas Day). To qualify for the special rate,the customer shall provide: 1. Electric vehicle charging station that is used for the sole purpose of charging electric vehicles. This charging station must be 240 volt. 2. Customer is responsible for installation of the additional meter socket in a mutually agreed upon location. 3. Inspection by a State Certified electrical inspector of all metering equipment and provide an affidavit to ERMU when completed. Elk River Municipal Utilities shall provide: 1. All on-peak electric energy consumed by the electric vehicle charging equipment will be at the summer rate of$0.1270/kWh for the five monthly billing periods of June—October, and the winter rate of$0.1160/kWh for the seven monthly billing periods of November—May. 2. All off-peak electric energy consumed by electric vehicle charging equipment will be at the rate of$.0602/kWh. 3. The rate is subject to application of the Power Cost Adjustment (PCA). 4. This equipment will be available for charging at applicable rates 24 hours per day and is not subject to any load control strategies. 5. Electric meter. 6. Final inspection prior to meter activation to ensure only qualified loads are being supplied through the electric vehicle charging equipment. Public Electric Vehicle Charging Rate:This rate is available to anyone charging an electric vehicle or plugin electric vehicle at a public electric vehicle charging station owned and operated by ERMU within the ERMU service territory. All persons must have an active ChargePoint account or have the capability Page 1 of 2 58 Electric Vehicle Charging Rates to create a ChargePoint account prior to utilizing the charging equipment for an electric vehicle or plug- in hybrid electric vehicle. To charge at the public charging stations customers shall: 1. Utilize their existing ChargePoint account or create a new account using a credit or debit card prior to charging the electric vehicle or plug-in hybrid. Elk River Municipal Utilities shall provide: 1. Access to public electric vehicle charging stations located in the ERMU service territory. 2. The chargers will be either level two (240 volt) or DC Fast Charging (480 volt) charging equipment. 3. Electric energy consumed at the level two charging stations will be at a rate of$0.1500 per kWh at all times. 4. Electric energy consumed at the DC Fast Charging station will be at a rate of$0.2000 per kWh at all times. Adopted December 11, 2018 Revised January 8, 2019 Effective January 1, 2019 Page 2 of 2 59 Elk River Municipal Utilities STREET/SECURITY LIGHT SERVICE RATE Available:To any customer meeting Elk River Municipal Utilities criteria for service under this schedule, and whose lighting needs are not being furnished under any other schedule. Installation costs will be determined by Elk River Municipal Utilities per the Utilities Fee Schedule or on a time and materials basis. Applicable:As determined by Elk River Municipal Utilities, but generally to non-metered roadway and area lighting. Character Of Service: 120/240 volts,AC, as available. Street/Security Light Service Type Monthly Rate Per Fixture Low Output (<249 Watt HPS,<74 Watt LED) $9.00 Medium Output (250-399 Watt HPS,75-124 Watt LED) $15.00 High Output (400 Watt or larger HPS, 125 Watt or larger LED) $21.00 Rates are subject to sales tax. Ownership of Equipment: Elk River Municipal Utilities will install, own, and operate the lights, including fixtures and control equipment, unless otherwise agreed upon by Elk River Municipal Utilities and the Customer. Lamp Replacements: Lamp replacements will be made by Elk River Municipal Utilities when and as requested by the Customer. Terms of Payment: Bills are due and payable upon receipt and are considered 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. Billing and Terms of Payment:See ERMU Service Policies Policy(Billing Due Dates, and Penalties and Delinquent Notices.) General Terms and Conditions Applicable To Non-Metered Lighting Service: 1. Area lighting installed on Elk River Municipal Utilities poles shall not be of the type that interferes with climbing room,work space, or wire clearance as defined by the National Electrical Safety Code and is to be installed below the secondary line and service drops, all per Elk River Municipal Utilities' specification. Page 1 of 2 60 Street/Security Light Service Rate 2. All area lights installed under this schedule shall be equipped with a photo-electric control which will limit the hours of illumination from dusk to dawn (approximately 4,400 hours per year). 3. 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. 4. Exceptions by management approval only. Adopted December 11, 2018 Revised January 8, 2019 Effective January 1, 2019 Page 2 of 2 61 Elk River Municipal Utilities WATER SERVICE RATES Available:To all customers who have municipal water service available at their property, lying within the corporate limits of the City of Elk River. Special Conditions: Each customer served by one meter. Multiple living entities,such as apartments, may be served by a combined meter upon approval of the Elk River Municipal Utilities and acceptance of applicable charges. Special Charges:A basic monthly water charge shall be applied to each meter based on the meter size according to the schedule below,and is separate from any water use. Included in the basic monthly water charge is$0.53 that is collected on a monthly basis from each service connection (excluding irrigation only accounts)to recover the total annual cost of$6.36 for the State of Minnesota Safe Water Testing Program (Minnesota Statutes 144.3831). Water Rates: BASIC MONTHLY 15t TIER 2nd TIER 3`d TIER METER TYPE CHARGE Cost per 1000 Cost per 1000 Cost per gallons gallons 1000 gallons Residential $9.22 $1.85 $3.50 $4.00 Commercial% $11.06 $1.85 $3.50 $4.00 Commercial 1 $12.30 $1.85 $3.50 $4.00 Commercial 1% $13.54 $1.85 $3.50 $4.00 Commercial 1% $14.76 $1.85 $3.50 $4.00 Commercial 2 $19.68 $1.85 $3.50 $4.00 Commercial 3 $43.03 $1.85 $3.50 $4.00 Commercial 4 $59.02 $1.85 $3.50 $4.00 Commercial 6 $86.07 $1.85 $3.50 $4.00 Commercial 8 $116.81 $1.85 $3.50 $4.00 Commercial Irrigation Seasonally or $19.68 $3.50 $4.00 Permanently Installed Residential water-exempt from sales tax. Commercial water-subject to sales tax unless exemption is filed. Page 1 of 2 62 Water Service Rates Residential Rate Tier Definition: First Tier Rate=0—9,000 gallons per month. Second Tier Rate= Between 9,000 and 15,000 gallons per month. Third Tier Rate=Above 15,000 gallons per month. Commercial Rate Tier Definition: First Tier Rate=0—1.1 X previous year's winter measurement period average monthly consumption. Second Tier Rate= Between 1.1 X previous year's winter measurement period average monthly consumption to 1.1 X previous year's winter measurement period average monthly consumption+ 40,000 gallons. Third Tier Rate=Above 1.1 X previous year's winter measurement period average monthly consumption+40,000 gallons. Winter Measurement Period Definition: December—April billing cycles. For new customers, if a minimum of 3 winter months previous year's history is not available to establish the Tier amount,the First Tier rate shall be utilized until a minimum of 3 months history is established. Commercial irrigation is not eligible for First Tier Rate as there is no winter use. Minimum Bill: Basic monthly water charge plus any charges applicable to multiple living entities. Terms of Payment: Bills arc due and payable upon receipt and delinquent if not paid by the due date note on the bill.There will be a ten (10) percent late payment charge added to all accounts that arc not paid by the due date. Billing and Terms of Payment:See ERMU Service Policies Policy(Billing Due Dates, and Penalties and Delinquent Notices.) Adopted December 11, 2018 Revised January 8, 2019 Effective January 1, 2019 Page 2 of 2 63 ERMU Policy-A.1 -Service Policies-Sections 2.0 and 3.0 2) All applications for utility service made after the approved date of this policy, must be made by telephone, in writing, electronically, or in person and the following information is required: a)Date service is required. b)Name of person(s)responsible for service. c) Social Security numbers and Date of Birth for all persons responsible for service, or guarantor form signed. d) Telephone numbers(s). e) Mailing address, if different than service address. f)Deposit, if necessary per Deposit Policy. g) Service Agreement. 3) All of the customer's previously incurred obligations or delinquent bills to ERMU must be paid in full before new service will be provided. 4) Any business serviced by ERMU that has not applied for service as required by this policy, and complied with the requirements contained herein, shall be considered an unauthorized user of ERMU services and subject to immediate disconnect without notice. 5) A new application for service and service agreement will be required any time a commercial property changes ownership, changes tenants, or a new or different person or business entity is requesting service to the property. 6) Identification suitable to ERMU may be required for any application for service. 7) Unoccupied commercial rental properties and commercial properties without a current ERMU account shall be billed in the name of the owner and the owner shall be liable for payment of charges. 2.0 Billing Due Dates A) ERMU has four billing cycles. Each cycle is billed one time per month. Bills are due on the due date specified on the bill,which will be approximately 20 days after the bill is generated. B) Bills are payable at the offices of ERMU located at 13069 Orono Parkway in Elk River during regular business hours, by mail, online, or in provided drop boxes 24 hours per day. Drop boxes are provided outside the ERMU office and beside the post office boxes located off Freeport Street, north of the post office. Drop box locations may be changed from time to time. Automatic payment plans are available with Bank Pay. 3.0 Penalties and Delinquent Notices A) Bills are considered late the next business day following the due date. A penalty of 10% of the original bill amount is added to the account. A Reminder Notice/Notice of Delinquency is generated the same day penalties are assessed. A grace period of up to 6 days may apply. B) Any check given in payment for services that is returned by the bank marked NSF (Non-Sufficient Funds), will be subject to a NSF fee per the ERMU fee schedule. The NSF fee will be added to the account. C) Customers will be subject to additional deposit requirements after having late payments. 64