2.5a ERMUSR 08-09-2022Page 1 of 3
TRANSMISSION TRANSFORMED SERVICE RATE
Available: Within Elk River Municipal Utilities (ERMU) established service territory.
Applicable: Available for new non-residential Customer accounts with demand greater than or equal to
10 MW. The Customer must maintain a minimum average annual peak demand of 10 MW with an
annual load factor greater than 75%. If Customer fails to meet the minimum peak or load factor the
Customer 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 substation 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 at applicable rate schedule.
ERMU equipment and metering must be accessible to ERMU 24 hours per day.
Billing Determinants
1. Energy: Actual metered hourly kWh usage.
2. Transmission Demand: Actual metered billing period maximum 15-minute interval Customer
demand, adjusted for applicable MISO zone transmission losses.
3. Capacity: Customer shall select one of the options below:
a. If the 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 billing period. To qualify for the billing determinant in the
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Transmission Transformed Service Rate
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preceding sentence, Customer’s generation must be registered with MISO and comply
with all MISO requirements for capacity resources.
b. If Customer does not own generation, or if Customer fails to register the generation
resource with MISO or fails to comply with all MISO requirements for capacity
resources, then the capacity billing determinant shall be the billing period maximum
metered 15-minute interval Customer demand measured at the meter.
Rates and Charges
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 0.2 cents per kWh for the cost of compliance with the State of Minnesota’s
Renewable Energy Standard
• 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 Capacity billing determinant multiplied by the MISO Zone 1 Capacity Auction
Clearing Price for a given period.
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.
City fees, such as franchise and storm water, will apply.
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.
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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.
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 98%. If the
power factor, as measured by ERMU’s electric department, is lower than 98%, the monthly demand
charge may be multiplied by the ratio 98% 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 August 9, 2022
Effective September 1, 2022
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