ERMU RES 22-08RESOLUTION NO. 22-8
BOARD OF COMMISSIONERS
ELK RIVER MUNICIPAL UTILITIES
A RESOLUTION APPROVING THE UPDATED COGENERATION AND SMALL POWER
PRODUCTION TARIFF FOR ELK RIVER MUNICIPAL UTILITIES
WHEREAS, the Rules Governing the Interconnection of Cogeneration and Small Power
Production Facilities ("Rules") with Elk River Municipal Utilities("ERMU") and Minnesota
Statutes Section 21613.164 ("Statute") require ERMU to file a Cogeneration and Small Power
Production Tariff with ERMU Commission annually; and
WHEREAS, the statute and the Rules require the information contained in schedules 1, 2 and 3
described in Exhibit A to this Resolution; and
WHERAS, these filings shall be maintained at ERMU offices and shall be made available for
public inspection during normal business hours.
THEREFORE, BE IT RESOLVED that the Elk River Municipal Utilities Commission approves the
Cogeneration and Small Power Production Tariff attached as Exhibit A to this Resolution for
transactions following the date of adoption stated below.
This Resolution Passed and Adopted this 10th day of May 2022.
WDtz,
Theresa SI inski, General Manager
Exh ib it A
COGENERATION AND SMALL POWER PRODUCTION TARIFF
TARIFF
Pursuant to its Rules Governing the Interconnection of Cogeneration and Small Power
Production Facilities, Elk River Municipal Utilities ("Utility") establishes and/or updates its
Cogeneration and Small Power Production Tariff ("Tariff') for billing and sales
transactions following the date of Tariff approval as follows.
The Tariff shall consist of the following three schedules.
SCHEDULE 1.
Calculation of average retail utility energy rates for each utility customer class.
S C HEDULE 2.
Rates at which Utility purchases energy and capacity from the wholesale supplier from
which purchases may first be avoided.
SCHEDULE 3 .
Utility's adopted interconnection process, or "distributed generation tariff' adopted in
compliance with Minnesota Statutes Section 216B.1611, subd. 3(2), including standard
contract forms to be used with customers interconnecting qualifying facilities as well as
general technical interconnection and interoperability requirements.
SCHEDULE 1 — AVERAGE RETAIL UTILITY ENERGY RATES
Average Retail Utility Energy Rates: 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's
applicable rate schedule. Utility shall pay the customer for the energy generated by the
Qualifying Facility that exceeds that supplied by Utility during a billing period at the
"average retail utility energy rate." "Average retail utility energy rate" means, for any
class of utility customer, the quotient 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.
"Average retail utility energy rates" are as follows:
Customer Class
2022 Average Retail
Utility Energy Rate
Residential
$0.1206 /kWh
Commercial Non -Demand
$0.1084 /kWh
Commercial Demand
$0.0649 /kWh
Large Industrial Demand
$0.0644 /kWh
SCHEDULE 2 -WHOLESALE SUPPLY RATES
Wholesale Supply Rates: A "non -generating utility" must list the rates at which it
purchases energy and capacity. Ifthe utility has more than one wholesale supplier, the
rates listed are of that supplier from which purchases may first be avoided.
Utility purchases energy and capacity from Minnesota Municipal Power Agency. Last
year, the average energy rate paid by Utility was $0.02204 per kilowatt-hour. The average
capacity rate paid by Utility was $0.05890 per kilowatt-hour.
These rates are used to calculate Utility's "avoided costs" for purposes of calculating
compensation to customers whose Qualifying Facilities are not eligible for compensation
at Utility's average retail utility energy rate or who elect compensation at another rate.
SCHEDULE 2 - WHOLES ALE SUPPLY RATES
Interconnection Process: In order to provide for coordinated interconnection of
customer -owned distributed energy resources and comply with Minnesota Statutes
Section 216B.1611, subd. 3(2), Utility has adopted the "Minnesota Municipal
Interconnection Process (M-MIP) 2022" as recognized by the Minnesota Municipal
Utilities Association Board of Directors at its February 9, 2022, meeting and made
publicly available at mmua.org.
General technical requirements may be found in the Minnesota Technical
Interconnection and Interope rability Requirements (TIIR) as adopted by the Minnesota
Public Utilities Commission on January 22, 2020 as part of DOCKET NO. E-999/CI-16-
521.
For utility -specific safety standards, required operating procedures for interconnected
operations, and the functions to be performed by any control and protective apparatus,
please contact Utility for its Technical Specifications Manual (TSM).