4.5 ERMU 12-12-2023Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO:
FROM:
ERMU Commission
Sara Youngs —Administrations Director
MEETING DATE:
AGENDA ITEM NUMBER:
December 12, 2023
4.5
SUBJECT:
Energy Management Programs
ACTION REQUESTED:
Approve extension of a sunset date from December 31, 2023, to December 31, 2025, for the
Dual Fuel, Electric Thermal Storage Water, and Electric Thermal Storage Space Heating
programs.
BACKGROUND:
The Dual Fuel, and Electric Thermal Storage (ETS) Water & ETS Space Heating Energy
Management programs were put into moratorium in February 2017 as a result of Midcontinent
Independent System Operator (MISO) market changes, obsolete communication technology,
and wholesale power provider changes. At this time, the cost of upgrading the existing
communication equipment is greater than any savings ERMU would recognize through peak
reduction in the current MISO market and the billing practices of our wholesale power provider
rates.
In 2018, staff was directed to work on a plan to help customers transition away from the
current programs. The Commission and staff discussed the option of maintaining the current
program for existing customers with a sunset date of 3 to 5 years. During the sunset period, the
rates would be increased to reach parity with the standard general service rate. Based on the
substantial capital investments customers may have in their existing systems, the Commission
and staff had consensus that the 5-year sunset period would be best.
As part of the communication plan staff was to provide an annual notification to customers
participating in the Dual Fuel, and ETS Water and Space Heating programs about the end date
of December 31, 2023, and the need for customers to evaluate other options for space and/or
water heating needs. ERMU failed to communicate the sunset date with participating
customers at the end of 2022. The sunset period was offered to any person purchasing or
renting a property that is participating in an affected Energy Management program until the
end date of December 31, 2023.
In addition, staff was to research possible new programs during the sunset period that will
provide benefit to the participating customers and ERMU. Any replacement Energy
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Management programs created will be marketed, communicated, and made available to all
ERMU residential customers.
DISCUSSION:
As part of the Advanced Metering Infrastructure (AMI) project staff has been in discussions with
Dave Berg Consulting to determine the best course of action for establishing new Energy
Management programs for the existing sunsetting programs. Mr. Berg's recommendation is to
review actual usage data from existing ERMU customers on AMI before establishing new Energy
Management programs.
Staff is requesting the extension of the sunset date from December 31, 2023, to December 31,
2025, which will allow time for the installation of all AMI meters, review of customer usage, and
for a rate study to be completed which will allow for the implementation of new Energy
Management Programs.
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