6.4. ERMUSR 09-11-2007J~
Elk River
Municipal Utilities
13069 Orono Parkway • P.O. Box 430
Elk River, MN 55330-0430
September 4, 2007
To: Elk River Municipal Utilities Commission
Jerry Takle
Jerry Gumphrey
Jim Tralle
From: Bryan Adams
Subject: Wind Power Tariff
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Phone: 763.441.2020
Fax: 763.441.8099
We offer a Wind Power program through Great River Energy where our customers can purchase
blocks of 100KWH of wind power for an additional $2.25/month. We have approximately 197
customers purchasing 375 blocks of power. When Great River Energy changed their rates in
January 2007, they reduced their wind power (renewable energy) rate by 7 mils. It was staffs
intent to change our block rate from $2.25 to $1.90 but neglected to do so. As we are now
advertising our Wind Power programs, I recommend we reduce this rate effective September
billing for August consumption.
From a broader prospective, is promoting this program still desirable or necessary? Previous
state legislation required electric utilities to make good faith efforts towards providing 6%
renewable energy by 2010. The Renewable Energy Standard Legislation passed in 2007
changed from "good faith effort" to "shall provide the following % of their total electric sales to
retail customers from eligible renewable technologies."
12% 2012
17% 2016
20% 2020
25% 2025
With this change from "good faith efforts" to "shall", is it ethical to promote a program where
customers pay more for a product we are now obligated to provide? In defense of this program,
it is a totally volunteer program by the customers who choose to participate. On the other hand,
many of our customers are not aware of the change in legislation. Possibly a letter to these
customers is warranted explaining this legislative change and asking them if they still desire to
participate.
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