2.5a ERMUSR 04-13-2021TRANSMISSION TRANSFORMED SERVICE RATE
Available: Within Elk River Municipal Utilities (ERMU) established service territory.
Applicable: Available for new non-residential Customer accounts with projected demand greater than or
equal to 10 MW. The Customer must maintain an annual load factor greater than or equal to 75%. A
Customer account with a monthly billing demand of less than 10 MW for 12 consecutive months or an
annual load factor less than 75% may be switched to another electric rate schedule (additional charges
may apply to recover stranded costs). The Customer owned equipment must be in compliance with all
policies, procedures, safety requirements, and applicable electrical codes.
Character of Service: 3-Phase Transmission Transformed 7,200/12,470-volt, AC, 60 cycles.
Special Conditions: The Customer must execute a contract with the utility that commits to a minimum
term of service, identifies the annual peak demand and load factor, agrees to the requirements for
registering generation with Midcontinent Independent System Operator (MISO) if applicable, and
accepts the certain risks that include fluctuating market-based rates and prices established by MISO.
The Customer must connect directly to the Utility’s distribution substation(s) and provide the location
suitable for the installation of the utility owned transformer(s) and metering equipment on the
Customer’s property. Customer will be responsible for providing suitable wire and connection in the
utility owned metering equipment. The metering equipment 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 maintain one metered account, 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.
ERMU equipment and metering must be accessible to ERMU 24 hours per day.
Transmission Demand Charge:
Transmission Demand charges are determined by monthly maximum metered 15-minute Customer
demand, adjusted for applicable MISO zone transmission losses. All applicable MISO transmission
charges, including but not limited to the below, shall apply to all transmission demand quantities:
A. Schedule 1
B. Schedule 2
C. Schedule 9
D. Schedule 26
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Transmission Transformed Service Rate
Capacity Charge:
Capacity charges are determined by Customer selection of one of the options below:
A. 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 this billing determinant, Customer’s generation must be registered with MISO and
comply with all MISO requirements for capacity resources.
B. 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.
The following charges shall apply to all capacity quantities. The above-defined billing determinant
multiplied by:
A. $10.60 per kW-month for all capacity quantities during the months of June through September.
B. $3.50 per kW-month for all capacity quantities during the months of October through May.
Energy Charge:
Energy billing is determined by actual hourly usage. The following charges shall apply to all energy (kWh)
quantities:
A. MISO Real-Time Locational Marginal Price at the applicable MISO Node.
B. All applicable MISO Ancillary Services Charges.
C. MISO Multi-Value Project Charges.
D. A charge of $0.001 per kWh for the cost of compliance with the State of Minnesota’s Renewable
Energy Standard.
E. A charge of $0.01 per kWh to cover all dispatch, billing, and administrative costs. This charge
shall be inclusive of all franchise fees, and regulatory charges collected by Utility on all
customers.
Federal, state, and local taxes may apply.
Failure to Generate: 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:
A. Any financial or other penalties imposed by MISO related to the generation’s failure to perform.
B. All costs of utility or utility’s wholesale supplier to acquire replacement capacity to replace
registered generation that did not perform.
Transformation Charge: 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.
Minimum Bill: Charges for failure to meet minimum peak demand and load factor requirements shall be
outlined in the contract between Customer and Utility.
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Transmission Transformed Service Rate
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. Service shall comply with all applicable ERMU Policies and rules.
2. Extensions made for service under this schedule are subject to the provisions of ERMU’s rules
governing Extension of Service and Facilities.
3. 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.
4. All rates in this electric rate schedule are subject to change with commission approval.
5. Exceptions by management approval only.
Adopted April 13, 2021
Effective April 13, 2021
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