5.2. ERMUSR 11-13-2007Elk Ri
Municipd Ut lities
13069 Orono Parkway • P.O. Box 430
Elk River, MN 55330-0430
November 5, 2007
To: Elk River Municipal Utilities Commission
Jerry Takle
Jerry Gumphrey
Jim Tralle
From: Bryan Adams
Subject: Wholesale Electric Power Costs
Phone: 763.441.2020
Fax: 763.441.8099
We just received confirmation that Great River Energy's rate would only increase by 8.5%
instead of the earlier projection of 9.5%. Apparently Great River Energy members are balking at
the proposed large rate increase.
Attached are Great River Energy's again revised proposed demand and energy rates for 2008.
See the bottom portion of the attached spread sheet. Because Elk River Municipal Utilities has
different demand/energy ratios and different on peak/off peak ratios our percent increase is
different. Typically we have passed on the electric wholesale rate to our customers which
equates to $1,375,698 increase or $.0061/KWH. This is also our 2008 budget assumption.
Great River Energy
Elk River, Minnesota
N
2008 Wholesale Rates
Revision: Ninth
CONFIDENTIAL
Power Factor
A power factor penalty charge shall be assessed to member systems that have not
installed capacitor additions in accordance with the annual recommendations of GRE.
The amount of kilovar (KVAR) penalty will be determined by the deficiency between the
actual KVAR installed and the recommended KVAR. The penalty charge for any such
deficiency is $1.00 per KVAR per month.
Power Cost Adjustment
The wholesale capacity and energy rates contained herein are subject to a monthly
power cost adjustment mechanism described in the PPC and set forth in Special Rate
Rider P of this schedule.
2008 Monthly Rates
Members shall pay GRE each month for all power, energy and delivery services
ft
mashed at the following rates from their res ective Member Resource Pool:
Charge Type Member Resource Pools
All -Requirements 11/2006
Power SUDDIV Services
Capacity Charge (per kW -month)
$
4.61
$
4.61
Summer (Jun, Jul, Aug)
$
12.54
$
13.62
Winter (Jan, Feb, Dec)
$
8.36
$
9.08
Spring/Fall (Mar, Apr, May, Sep, Oct, Nov)
$
4.18
$
4.54
Reactive Supply and Voltage Control
$
0.22
$
0.22
Energy Charge(per kWh
$
0.15
$
0.15
Critical -peak (Up to 40 hours*)
$
0.09535
$
N/A
On -peak (Mon -Fri", 10:00-20:00 CPT)
$
0.04406
$
0.04307
Off-peak (All hours not designated as
Critical -peak or On -peak)
$
0.02927
$
0.02791
Delivery Services
Transmission Charge(per kW -month
$
4.61
$
4.61
Ancillary Service Charges(per kW -month
$
0.61
$
0.61
—Scheduling & System Control
$
0.07
$
0.07
Reactive Supply and Voltage Control
$
0.22
$
0.22
—Regulation and Frequency Response
$
0.15
$
0.15
—Operating Reserve - Spinning
$
0.14
$
0.14
Operating Reserve - Other 1
$
0.03
$
0.03
Gnucai-peak pends will be declared by GKE no later than 16:00 CPT on the day(s) prior to
actual use and are subject to other specifications contained in the PPC.
* Excludes the following holidays if they fall on a weekday: New Years Day, Memorial Day,
Independence Day, Labor Day, Thanksgiving Day and Christmas Day.
GRE Confidential 2 Effective: 01/01/2008
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