2.4 ERMUSR 01-14-2020UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Tom Sagstetter Conservation & Key Accounts Manager
MEETING DATE: AGENDA ITEM NUMBER:
January 14, 2020 2.4
SUBJECT:
2020 Schedule of Rates
ACTION REQUESTED:
Approve the revisions to the 2020 Schedule of Rates
BACKGROUND:
In December, the 2020 Annual Business Plan was approved, including the 2020 Schedule of
Rates & Fees. The ERMU Commission recommended that staff revise two of the rate sheets to
address inconsistencies.
DISCUSSION:
Staff is proposing to completely remove the Cycled Air-Conditioning Program from the Energy
Management Program Rates. This program was in moratorium effective February 14, 2017 and
has since been eliminated as a program offered or maintained by ERMU. In addition, the
reference to the Cycled Air-Conditioning program will be eliminated from the Special Conditions
sections of the Commercial All Electric with Ground Source Heat Pump Service Rate.
The final revision is to remove the summer and winter rate designation on the Commercial All
Electric with Ground Source Heat Pump Service Rate. The differentiation between summer and
winter is no longer needed because ERMU now references applicable taxes in a more general
sense than specifically calling out the exemption for sales tax for winter electric heating.
ATTACHMENTS:
Schedule of Rates
Revised Energy Management Program Rates
Revised Commercial All Electric with Ground Source Heat Pump Service Rate
______________________________________________________________________________
Page 1 of 1
40
MORATORIUM EFFECTIVE FEBRUARY 14, 2017 ON THE FOLLOWING LOAD CONTROL PROGRAMS
ENERGY MANAGEMENT PROGRAM RATES
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:
Dual Fuel Space Heating Rate: This Program is available to residential customers only. A dual fuel space
heating system consists of an electric heating system and a secondary non-electric space heating system
both capable of heating the living space at design conditions. Interruptions of the electric heating
system will usually occur for up to 12 hours daily on peak winter days and a maximum of 400 hours per
heating season.
To qualify for the special rate, the customer shall provide:
1. An electric space heating system which can be interrupted by a single 5 amp rated relay.
2. A secondary non-electric space heating system capable of automatic start-up and continuous
operation upon interruption of the electric heating system.
3. Obtain a load control device furnished by ERMU.
4. Accommodations for a meter and load control device and associated wiring installed according
to the applicable electrical codes, and installed by a qualified electrician.
5. Inspection by a State certified electrical inspector and a representative of ERMU.
6. Radiant heat in the slab of the building qualifies for dual fuel, not electric thermal storage.
7. Dual Fuel is not allowed in garages, pole sheds, or any structure that does not confirm to the
residential building code.
8. Exceptions by management approval only.
ERMU shall provide:
1. All electric energy consumed by the primary electric heating system at $.0602 per kWh.
2. During peak load conditions, ERMU will turn customer controlled electrical heat off for extended
periods of time as stated above.
3. A meter to measure electricity consumed by the electric heating system.
4. A load control device and meter socket to accommodate the meter.
Rate is subject to application of Power Cost Adjustment (PCA).
Federal, state and local taxes may apply.
Page 1 of 3
41
MORATORIUM EFFECTIVE FEBRUARY 14, 2017 ON THE FOLLOWING LOAD CONTROL PROGRAMS
Energy Management Program Rates
Electric Thermal Storage (ETS) Space Heating Rate: This Program is available to all ERMU customers.
An ETS space heating system is designed to store heat produced by electricity generated during eight
off-peak hours for use in heating during the remaining on-peak hours daily. Off-peak hours typically
occur between 11 PM and 7 AM. Qualifying ETS configurations may be central storage furnaces, room
storage heaters or slab (deep heat) systems including combinations of same.
To qualify for the special rate, the customer shall provide:
1. An ETS space heating system listed by UL or some other nationally recognized testing agency
which can be interrupted by a single 5 amp rated relay.
2. Obtain a load control device from ERMU.
3. Accommodations for a meter and load control device and associated wiring installed according
to the applicable electrical codes, and installed by a qualified electrician.
4. Inspection by a State certified electrical inspector and a representative of ERMU.
ERMU shall provide:
1. All electric energy consumed by this ETS system at $.0463 per kWh.
2. This equipment will be energized only for 8 off peak hours daily. Additional on-time is provided
on weekend days and holidays.
3. A meter to measure electricity consumed by the ETS space heating system.
4. A load control device which will automatically control ETS space heating system during on-peak
hours.
Rate is subject to application of Power Cost Adjustment (PCA).
Federal, state, and local taxes may apply.
Electric Thermal Storage (ETS) Water Heating Rate: This Program is available to all ERMU customers.
An ETS water heater is designed with extra storage capacity to provide total domestic hot water needs
from electricity consumed only during eight off-peak hours daily. Off-peak hours typically occur between
11 PM and 7 AM. Qualifying ETS configurations may be a large single tank, dual tanks plumbed in series,
or an electric and non-electric tank plumbed in series with the electric placed on the cold water side.
Electric water heater must have an energy factor of .91 or more and a minimum of 80 gallons of storage
capacity.
To qualify for the special rate, the customer shall provide:
1. An ETS water heating system which can be interrupted directly by a single 30 amp rated relay.
2. Obtain a load control device from ERMU.
3. Accommodations for a meter and load control device and associated wiring installed according
to the applicable electrical codes, and installed by a qualified electrician.
4. Inspection by a State certified electrical inspector and a representative of ERMU.
5. This rate is not available for hot water use in any production process for Commercial and
Industrial users.
Page 2 of 3
42
MORATORIUM EFFECTIVE FEBRUARY 14, 2017 ON THE FOLLOWING LOAD CONTROL PROGRAMS
Energy Management Program Rates
ERMU shall provide:
1. All electric energy consumed by the ETS water heater at $.0463 per kWh.
2. This equipment will be energized only for 8 off-peak hours daily.
3. A meter to measure electricity consumed by the ETS water heater.
4. A load control device and meter socket to accommodate the off-peak meter.
Rate is subject to application of Power Cost Adjustment (PCA).
Federal, state, and local taxes may apply.
Cycled Air Conditioning: This Program is available to all customers served by ERMU who have central
air conditioners. Program participants must allow installation of a utility supplied load control device so
air conditioning demand can be reduced at critical times. This Program is subject to the following terms
and conditions:
1.The Customer must have a conventional central air conditioner, ASHP or GSHP, of at least 2 tons Formatted: Font: (Default) +Body (Calibri), 11
pt
capable of being interrupted with a 5 amp relay.
Formatted: Normal, No bullets or numbering
2. ERMU will furnish the load control device and pay to have it installed by a licensed
electrician. Separate metering is not required.
3. The Customer must allow access for installation of the load control device during normal
business hours.
4. The Customer must allow access for load control maintenance and compliance inspections
by ERMU personnel during normal business hours.
5. Customers must agree to allow ERMU or its designee to remotely cycle their central air
conditioner, ASHP or GSHP, off for approximately 15 minutes out of each 30 minute period
at critical peak use times during the cooling season (May through September). Except for
extreme emergencies, duration of said control will not exceed 6 hours per day and more
than 200 hours total per cooling season.
6. Customers who elect to participate in this Program must remain on it for at least one
cooling season or part of the load control installation costs may be assessed to the
customer.
7. Customers with central air conditioners, ASHP or GSHP, that are grossly oversized for the
conditioned space will not be allowed to participate. Such systems do not provide ERMU
sufficient load reduction relief at critical peak use times.
8.1. Cycled AC Program participants will receive a $3 per month credit for allowing ERMU to
interrupt their air conditioners as outlined above. Such payments will be provided in the
form of a bill credit during the five monthly billing periods of June October.
Adopted December 17, 2019
Revised January 14, 2020
Effective January 1, 2020
Page 3 of 3
43
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
Energy Charge: $0.0909 / kWh
Summer Winter
$.0909 / kWh $.0909 / kWh
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 2
44
Commercial All Electric with Ground Source Heat Pump Service Rate
Rates are subject to application of Power Cost Adjustment (PCA).
Federal, state, and local taxes may apply.
Minimum Bill: Basic Monthly Electric Charge.
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 rules.
3. Extensions made for service under this schedule are subject to the provisions of 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 17, 2019
Revised January 14, 2020
Effective January 1, 2020
Page 2 of 2
45