2.5 ERMUSR 01-14-2020UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Tom Sagstetter Conservation & Key Accounts Manager
MEETING DATE: AGENDA ITEM NUMBER:
January 14, 2020 2.5
SUBJECT:
Cogeneration and Small Power Production Tariff - Schedules 1 and 4
ACTION REQUESTED:
Adopt the revised Schedule 1 and 4 of the Cogeneration and Small Power Production Tariff
BACKGROUND:
Every municipal electric utility should have a policy reflecting the expectations and obligations
of the utility and customers who seek to interconnect their own electric generation facilities
with the distribution system. For ERMU these facilities consist of wind or solar photovoltaic
systems that are less than 40kW.
To allow for consistency over all municipals in the state, ERMU staff used models established by
the Minnesota Public Utilities Commission (MN PUC) and modified by the Minnesota Municipal
Utilities Association (MMUA) and Minnesota Municipal Power Agency (MMPA) to develop a
policy, rules, and an annual tariff to fulfill this requirement. The policies were adopted by the
Commission at the February 13, 2018 commission meeting, and revised policies were adopted
at the May 14, 2019 commission meeting.
DISCUSSION:
The policies and rules outline that, at least annually, the Commission will have to review and
adopt Schedules 1 and 4 of the Cogeneration and Small Power Production Tariff. The two
schedules reflect the average retail rates for the applicable class of customer and the method of
reimbursement selected by the customer owning the distributed generation facility. Attached
are the updated Schedules for 2020.
ATTACHMENTS:
ERMU Policy E.12b Cogeneration and Small Power Production Tariff - Schedule 1
Average Retail Utility Energy Rate
ERMU Policy E.12b Cogeneration and Small Power Production Tariff - Schedule 4
Average Incremental Energy Costs
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SCHEDULE 1 - AVERAGE RETAIL UTILITY ENERGY RATE
Average Retail Utility Energy Rate: Available to any Qualifying Facility of less than 40 kW
capacity that does not select either Roll Over Credits, Simultaneous Purchase and Sale Billing or
Time of Day rates.
Utility shall bill Qualifying Facilities for any excess of energy supplied by Utility above energy
supplied by the Qualifying Facility during each billing period according to Utility applicable
rate schedule. Utility shall pay the customer for the energy generated by the Qualifying Facility
that exceeds that supplied by Utility
of the total annual class revenue from sales of electricity minus the annual revenue resulting
from fixed charges, divided by the annual class kilowatt-hour sales. Data from the most recent
12-month period available shall be used in the computation.
A
Customer Class
Average Retail Utility
Energy Rate
Residential $0.12 /kWh
Commercial Non-Demand $0. /kWh
Commercial Demand $0.06 /kWh
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SCHEDULE 4 - AVERAGE INCREMENTAL COSTS
20MMPA Distributed Generation Payment Rates
Summer Months (Jun - Sep)Energy ($/kWh)Capacity ($/kWh)REC ($/kWh)
On Peak0.000
Off Peak0.000
All Hours0.0200
Winter Months (Oct - May)
On Peak0.000
Off Peak0.000
All Hours0.000
Annual (Jan - Dec)0.0200
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