2.3 EMRUSR 07-09-2024��i
Elk River ,
Municipal Utilities UTILITIES COMMISSION MEETING
TO:
FROM:
ERMU Commission
Sara Youngs —Administrations Director
MEETING DATE:
AGENDA ITEM NUMBER:
July 9, 2024
2.3
SUBJECT:
Update Cogeneration and Small Power Production Tariff - Schedules 1 and 2
ACTION REQUESTED:
Approve the update to the tariff
BACKGROUND:
Every municipal electric utility should have a policy reflecting the expectations and obligations
of the utility and customers who seek to interconnect their own electric generation facilities
with the distribution system. For ERMU these facilities consist of wind or solar photovoltaic
systems that are less than 40kW.
To allow for consistency over all municipals in the state, ERMU staff continues to use models
established by the Minnesota Public Utilities Commission which are modified by the Minnesota
Municipal Utilities Association (MMUA) and Minnesota Municipal Power Agency (MMPA). The
policies were adopted by the Commission at the February 13, 2018, commission meeting, and
revised policies were adopted at the May 14, 2019, commission meeting.
The policies and rules outline that, at least annually, the Commission will review and adopt
Schedules 1 and 2 of the Cogeneration and Small Power Production Tariff. The two schedules
reflect the average retail rates for the applicable class of customer. The customer elects the
rate schedule with the method of reimbursement to be based on the size of the facility.
Attached are the updated schedules for 2024.
DISCUSSION:
To ensure that all distributed energy resource (DER) installers and ERMU customers are aware
of the monthly fees that may be associated with the installation of a DER system, we are adding
a footnote at the end of the Cogeneration and Small Power Production Tariff- Schedule 1 and 2
stating, "As of January 2024, a monthly Grid Access Fee will apply to all interconnection
applications. Please review ERMU's fee schedule for the amount."
ATTACHMENTS:
Updated Cogeneration and Small Power Production Tariff— Schedules 1 and 2
Page 1 of 1
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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.
SCHEDULE 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 "diistriilbuted generation tariff" adopted iin
compliance with Minnesota Statutes Section 2161 ,.1611, subd,, 3(2), including standard
contract forms to Ibe used with customers interconnecting qualifying faciilliitiies as well as
general) technical interconnection and iinteroperalbiilliity requirements.
SCHEDULE 1-AVERAGE RETAIL UTILITY ENERGY RATE
Average Retail Utility Energy Rate: 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
2024 Average Retail Utility
Energy Rate
Residential
$0.1431 /kWh
Commercial Non -Demand
$0.1321 /kWh
Commercial Demand
$0.0826/kWh
Large Industrial Demand
$0.0833 /kWh
As of January 2024, a monthly Grid Access Fee will apply to all interconnection applications. Please review ERMU's fee schedule
for the amount.
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SCHEDULE 2 -WHOLESALE SUPPLY RATES
Whollesalle Supply I -t ,s A "inoin-geneiratiling a tiilliity" innu t Iliist the irates at wlh ll lh lit
Ipuirdhases ein it y and calpacity. If the a tiilliity Ihas innoire t1h an Dias w1hollesalle supplIlleir, the
Irates lii t aire of t1hat aulplpllii it firo mu wlh llclh puirdhases imay fiiir t The avoided.
Summer, Months (June -Sept)
On Peak
Off Peak
All IHours
Winter Months (Oct, -May)
iru Peak
Off Peak
All IHours
Annuegl (Jenu.uary-De errniher)
Energy ( /kWh) CapacitV ($/k 'h) RE ( /kWh)
0.0,33
O�
0.0428
01
043 2
,034'5
0(
0.0386
01
0.04
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