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ERMUSR 03-12-2024 Special MeetingElk River Municipal Utilities 1.0 CALL MEETING TO ORDER SPECIAL MEETING OF THE UTILITIES COMMISSION March 12, 2024, 2:30 P.M. Elk River City Hall Uppertown Conference Room AGENDA 2.0 ANNUAL COMMISSIONER ORIENTATION 2.1 Conservation Improvement Program Presentation — Frontier Energy 3.0 ADJOURNMENT Page 1 of 1 2 ElkRiv Municipal Utilities Energy Conservation and Optimization FRONTIER energy PRESENTED AT MEETING Agenda • Introduction to CIP and ECO • Overview of the law and requirements for consumer owned utilities • ERMU CIP History • ERMU 2024-2026 Conservation Plan • Residential Programs • Commercial Programs Conservation Improvement Program (CIP) • Minnesota Statue 216B.241 • Started in 1983 and low-income programs required in 1989 • An important energy resource and key customer engagement tool • Modernized in 2021 with the Energy Conservation and Optimization Act (ECO Act) • Goals • Improved awareness and adoption of energy -efficient technologies • Reduced energy costs for Minnesota households and businesses • Increased profitability for Minnesota companies and industries • Deferred costly utility infrastructure investments • Decreased carbon dioxide emissions • Conserved resources CIP Benefits • Utility Benefits • Avoided cost of producing energy • Delay investments in transmission and distribution upgrades • Reduced wholesale power and capacity prices through Demand Reduction Induced Price Effects (DRIPE) • Higher customer satisfaction • Reduced customer disconnection costs • Participant Benefits • Decreased monthly bills • Lower upfront costs through rebates • Improvements to indoor air quality and moisture • Auxiliary conservation such as reduced water consumption with some ENERGY STAR appliances • Societal Benefits • Environmental • Economic ECO Act Requirements • Minnesota Statute 216B.2403 Baseline Requirements for Cooperatives and Municipalities Overall Savings Rqmt, Energy Conservation Rqmt, Total Spending Goal Low -Income Spending Rqmt Program Year kWh 1.5% of: kWh 0.95% of: 1.5% of: 0.2% of: 2024-2026 2020-2022 2020-2022 2022 GOR 2020-2022 average average sales average sales residential GOR ERMU Minimum Goals 4,994,857 3,163,410 $634,500 $28,720 • Subd. 2. — Energy savings goal. • 0.95% must come from energy conservation improvements • The balance may be achieved by the following: • Additional energy conservation improvements • Electric utility infrastructure projects • Fuel -switching improvements ECO Act Requirements cont. • Subd. 3. - Plans. Submit a three-year plan and report progress annually • Subd. 4. — Investment. If savings goal is not met, then spending goal is a requirement. • Subd. 5. — Low-income spending. Spending must be met annually from: • Dedicated low-income programs • Other residential programs spending and rate of low-income persons in the service territory Spending Caps on Optional Investments Optional Investment Spending Cap 15% of Low -Income Pre-Weatherization Spending R&D Activities 10% of minimum spending Distributed and Renewable 5% of minimum spending Generation (DRG) Programs Efficient Fuel Switching 0.55% of GOR Elk River CIP History - Energy Savings 6,000,000 5,000,000 4,522,151 4,133,512 4,166, 765 4,000,000 3,338,144 3,000,000 2,000,000 1,000,000 0 2016 2017 4,490,283 4,306,231 199,352 2018 2019 ■ kWh Goal ■ kWh Achieved 4,734,571,597,290 2020 4,855,289 4,907,874 2021 2022 Elk River CIP History — Overall Spending $600,000 $500,000 $468,933 $444,402 $400,000 $300,000 $200,000 $100, 000 $0 2016 $529,534 $385,824 2017 $502,230 0$419,776 $529,797 1$443,790 $513,645 $486,835 2018 2019 2020 ■ Spending Goal ■ Spending Achieved $547,350 $426,381 2021 $548,026 $414,513 2022 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 M Elk River CIP History — Low Income Spending $49,587 $21,247 2016 $39,458 $21,797$22,885 $22,793 $23,785$24,682 $25,403 $39,910 2017 2018 2019 2020 ■ Low Income Spending Goal ■ Low Income Spending Achieved $41,384 $26,134 2021 $74,557 $26,898 2022 $0.200 $0.180 $0.160 $0.140 $0.120 $0.100 $0.080 $0.060 $0.040 $0.020 $0.000 a Elk River CI P History — Cost Effectiveness $0.140 $0.108 2016 $0.117 $0.093 2017 $0.139 $0.117 $0.118 $0.105 . 2018 2019 ■ Goal $/kWh ■ Actual $/kWh $0.189 $0.113 ■ $0.112 $0.117 $0.108 $0.106 2020 2021 2022 ERMU 2024-2026 Plan ERMU 2024-2026 Plans Program kWh Goal Spending Goal Low Income Contribution Low Income 741753 $33,214 $33,214 Residential Programs 5401640 $164,583 $64,681 Electric Vehicle Charging 0 $35,894 $0 Commercial Programs 3/369/131 $319,014 $0 Regulatory Costs 0 $39,417 $0 Distributed and Renewable Generation 0 $8,000 $0 Electric Utility Infrastructure 1/052/854 $0 $0 Research and Development 0 $18,000 $0 Load Management 0 $10,500 $41127 Tota 1: 5,037,378 $628,622 $102,022 ERMU Residential Programs ERMU Residential Rebate Offerings Category Measure Name Requirements ERMU Appliances Clothes Dryer Must be ENERGY STAR certified $40.00 Appliances Dehumidifier Must be ENERGY STAR certified $30.00 Appliances Refrigerator/Freezer Recycling $100.00 Appliances Refrigerator/Freezer Must be ENERGY STAR certified $35.00 Appliances Air Purifier Must be ENERGY STAR certified $35.00 Appliances Ceiling Fan Must be ENERGY STAR certified $10.00 Appliances Appliances Appliances Misc. Misc. Tier II Power Strip NEEP Tier 2 Advanced Power Strip $20.00 Clothes Washer Dishwasher Must be ENERGY STAR certified Must be ENERGY STAR certified Must have UEF of 2 or higher $40.00 $40.00 $200.00 Variable Speed Pool Pump Heat Pump Water Heater- 50-79 Gallon $400.00 Misc. Heat Pump Water Heater- >_80 Gallon Must have UEF of 2 or higher $450.00 Misc. ECM Circulator Pumps Specs must show ECM $100, <_50% of fixture cost Misc. EV Charger No Rebate ERMU Residential Programs Cont. ERMU Residential Rebate Offerings Category Measure Name Requirements ERMU Heating & Cooling Central AC - 16:5 SEER AC only 16 SEER and higher $125.00 Heating & Cooling Mini Split Ductless 16!5 SEER AC Only Ductless AC only 16 SEER and higher $150.00 Heating & Cooling Room Unit/Window AC Must be ENERGY STAR certified $10.00 Heating & Cooling Central & Ductless Heat Pumps Cold Climate Heat Pumps Heating and Cooling over 15 SEER and $400.00 Heating &Cooling Heating and Cooling over 15 SEER and over 9 HSPF. Also must have COP>=1.75 @ $1,000.00 Heating & Cooling Ground Source Heat Pumps Heating and Cooling over 15 SEER and $600/Ton $75.00 $40.00 Heating &Cooling Central AC/ASHP Tune Up Professional contractor invoice showing tune up activity performed. Heating & Cooling WiFi Thermostat NEEP Tier 2 Communicating Heating & Cooling Programmable Thermostat NEEP Tier 1 Programmable $20.00 Heating & Cooling Replacement Furnace w/ ECM Blower Motor Specs must show ECM $150.00 Lighting Ceiling Fan w/ Integral LED Light Must be ENERGY STAR certified $20.00 Lighting Screw -in Bulb Must be LED $2/lamp, <_50% of fixture cost Lighting Outdoor Fixture Must be LED $15/fixture, <_50% of fixture cost Lighting Holiday Lighting Must be LED Must be LED Control on occupancy, timer, or daylight harvesting $10/string, <_50% of fixture cost Lighting Custom Lighting $0.20/watt reduced, <_50% of fixture cost Lighting Lighting Controls $15/control, :550% of fixture cost ERMU Commercial Programs • Commercial and industrial energy audits • Project savings and payback analysis • New construction plan reviews • Design assistance • Custom energy rebates @ $0.035/kWh • Custom and Specialized Lighting • HVAC and Controls • Data Centers/IT Equipment • Industrial Process • Refrigeration • Food Service Equipment FRONTIER energy Tanuj Gulati (612) 205-9241 TGulati@frontierenergy.com Doug Eli (76afrontierenergy.com 222-3039 Deli Alexandra Blair (906) 281-2898 Ablair@frontierenergy.com