5.5 ERMUSR 11-12-2019 Elk River -:�:
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission _ Troy Adams, P.E. —General Manager
MEETING DATE: AGENDA ITEM NUMBER:
November 12, 2019 5.5
SUBJECT:
Transmission Transformed Rate
ACTION REQUESTED:
Approve the terms of the Transmission Transformed Rate effective November 13, 2019.
DISCUSSION:
On October 22, the Minnesota Municipal Power Association (MMPA) board of directors
approved a rate intended for very large new construction electric energy-only services.This
rate would be used by MMPA to market the twelve member communities to data center
developers.To qualify for the rate the applicant would need to be connected directly to a
substation, self-provide all service requirements with the exception of energy, and meet a
minimum load and load factor threshold.
Attached is the template service requirements document outlining the terms of the proposed
rate. Staff will discuss this proposed rate, the risks and benefits, and then make
recommendations to the Commission. Staff will look for action from the Commission at the
meeting.
ATTACHMENTS:
• MMPA Template—Electric Rate Schedule—Transmission Transformed Service
Page 1 of 1
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CITY OF XXXX
ELECTRIC RATE SCHEDULE—TRANSMISSION TRANSFORMED SERVICE
Conditions of Service
• Customer must take retail three-phase electric service at a transmission transformed voltage
via a direct connection to one of City's distribution substations.
• Customer must have a minimum annual peak demand of 5,000 kilowatts(kW).
• Customer's annual load factor must be no less than 75%.
• Customers that fail to meet the above criteria shall be moved to another electric rate schedule.
• New customers not yet taking service must demonstrate that they are likely to meet the above
criteria prior to taking service under this rate schedule.
• Any Customer taking service under this electric rate schedule must acknowledge that this rate
schedule contains market-based pricing that subjects the Customer to certain risks, including
fluctuation in rates and prices set by the Midcontinent Independent System Operator(MISO).
• Any Customer desiring to take service under this rate schedule must execute a contract with
the Utility that commits to a minimum term of service, outlines the expected peak demand
and load factor, agrees to the requirements for registering generation with MISO, and
acknowledges the risks of market-based pricing.
Billing Determinants
Energy: Actual metered hourly usage
Transmission Demand: Monthly maximum metered 15-minute Customer demand, adjusted for:
• Applicable MISO zone transmission losses
Capacity: Customer shall select one of the options below:
• If Customer has its own generation,then the capacity billing determinant shall be the
maximum metered 15-minute demand in excess of Customer's registered generation in a
given month. To qualify for the billing determinant in the preceding sentence, Customer's
generation must be registered with MISO and comply with all MISO requirements for
capacity resources.
• If Customer does not have its own generation, or if Customer fails to register its generation
with MISO or fails to comply with all MISO requirements for capacity resources, then the
capacity billing determinant shall be monthly maximum metered 15-minute Customer
demand.
Rates
The following charges shall apply to all energy quantities:
• MISO Real-Time Locational Marginal Price at the applicable MISO Node
• All applicable MISO Ancillary Services Charges
• MISO Multi-Value Project Charges
• A charge of 0.1 cents per kWh for the cost of compliance with the State of Minnesota's
Renewable Energy Standard
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• A charge of one cent per kWh to cover all dispatch,billing, and administrative costs. This
charge shall be inclusive of all franchise fees and regulatory charges imposed by Utility on
all customers.
The following charges shall apply to all transmission demand quantities:
• All applicable MISO transmission charges, including but not limited to:
o Schedule 1
o Schedule 2
o Schedule 9
o Schedule 26
The following charges shall apply to all capacity quantities:
• The above-defined billing determinant multiplied by:
o $9.60 per kW-month for all capacity quantities during the months of June through
September
o $3.50 per kW-month for all capacity quantities during the months of October through
May
If Customer has registered generation that does not perform as registered when requested by utility,
utility's wholesale supplier, or MISO, Customer shall be responsible for:
• Any financial or other penalties imposed by MISO related to the generation's failure to
perform
• All costs of utility or utility's wholesale supplier to acquire replacement capacity to replace
registered generation that did not perform.
Customer shall pay a monthly transformation charge based on the cost of providing transmission
transformed service to Customer, including recovery of costs for any new substation or related
facilities.
Customer is responsible for any new charges or fees imposed by MISO or any new regulatory or
legislative action that results in increased costs to provide power supply to Customer.
All rates in this electric rate schedule are subject to change on an annual basis.
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