5.2. ERMUSR 08-09-2011 - Laserfiche WebLink

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source, as has ERMU. These municipals purchase wholesale electrical power from private and public power producers, and then add the cost of service before selling to the municipal consumers at a retail rate. When U.S. municipals were generating full-time, the U.S. manufactured diesels included Nordberg, Enterprise, Cooper-Bessemer, Worthington, and Fairbanks-Morse, all of whom made slower speed, heavy-duty engines suitable for continuous duty service. When the municipals cut back on their local generation, fewer heavy-duty diesels were installed, and the first four above companies went out of the municipal diesel business. Fairbanks-Morse stayed in the business, because they were able to continue making municipal-type diesels for the military, as well as, diesels for domestic use. The local diesels continue to be valuable to the municipals, which include ERMU, who have interconnected with an outside power source and purchase most of their electrical requirements. The diesels are valuable by being able to provide local power during an outage on the interconnection and because the cost of purchased power is reduced by having the diesels. Municipals can install diesel generation and pay for it by capacity credits or lower cost energy charges from the interconnected power company, and/or by the value of having standby power. ERMU's diesels have value for the consumers of the electric system. The diesels can provide power during an interruption of the interconnection and they save money in wholesale power costs. When ERMU was generating 100% of its local requirements, there were no permits required for installing diesels; no fuel oil spill protection; and no concern about hazardous materials such as asbestos and chromate in jacket water. Today, regulations for these items are in place and are striving for a cleaner environment.