2.7 ERMUSR 02-13-20244r,;.Z,
Elk Riv
Municipal Utilities UTILITIES COMMISSION MEETING
TO:
FROM:
ERMU Commission
Sara Youngs —Administrations Director
MEETING DATE:
AGENDA ITEM NUMBER:
February 13, 2024
2.7
SUBJECT:
Transmission Transformed Service Rate
ACTION REQUESTED:
Approve the amended Transmission Transformed Service Rate, effective February 13, 2024
BACKGROUND:
On November 12, 2019, the ERMU Utilities Commission approved the terms of the
Transmission Transformed Service Rate, effective November 13, 2019. This rate would be used
by Minnesota Municipal Power Agency (MMPA) and ERMU to provide large customers building
new facilities access to competitive energy rates. To qualify for the rate the applicant would
need to be connected directly to a substation on their property, meet a minimum load capacity
requirement, operate at a pre -defined load factor threshold, and provide for all capacity and
service requirements except for energy delivery.
DISCUSSION:
As a result of the changing wholesale electric market conditions, MMPA has updated the rate
structure for these customers. The amended rates have gone from fixed capacity charges to
wholesale market rates established by the Midcontinent Independent System Operator (MISO)
for capacity quantities above the MISO registered generation quantities.
This rate is for customers that are comfortable with the risks and responsibilities associated
with market -based rates in MISO. The customer will be responsible for managing all the MISO
transmission, capacity, and energy costs. The customer will also pay $0.01/kWh to be split
between MMPA and ERMU to cover all dispatch, billing, and administrative costs, including but
not limited to franchise fees, and regulatory charges collected by ERMU on all customers.
ATTACHMENTS:
• Transmission Transformed Service Rate
Page 1 of 1
70