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DISPERSED GENERATION/INTERRUPTIBLE LOAD PROGRAM <br /> DESCRIPTION: Beginning January 1, 2000, Elk River Municipal Utilities (ERMU) <br /> provided an incentive to encourage on-site customer-owned generation. The target market <br /> consisted of those commercial accounts that already owned backup generators of at least 100 <br /> kW, or were considering an investment in backup generation of at least 100 kW due to the <br /> critical nature of their business. Effective May 1, 2003, that program was expanded to <br /> include commercial accounts of at least 100 kW that are able to interrupt at least 100 kW of <br /> load. <br /> AVAILABILITY: This Program is available to commercial customers served by ERMU <br /> which have sufficient load to fully utilize the output of between 100 kW and 1000 kW of on- <br /> site generation capacity or that can interrupt between 100 kW and 1000 kW of load. <br /> Customers with on-site generation in excess of 1000 kW or with in excess of 1000 kW of <br /> interruptible load may also qualify for this Program, but special terms and conditions may <br /> apply. Program participants must agree to operate their on-site generator, or limit operations <br /> to interrupt all or a mutually agreed upon portion of their electric load upon notification by <br /> ERMU or its designated agent. This Program applies to qualifying customers subject to the <br /> following Conditions of Service: <br /> 1. The Customer must be operating between the hours of 4 PM and 9 PM and have <br /> between 100 kW and 1000 kW of electric load that can be either switched to a <br /> standby generator or interrupted upon notification by ERMU or its designated <br /> agent. <br /> 2. The Customer must provide access to a phone line for notification and remote <br /> meter reading. <br /> 3. The Customer who selects billing under this Dispersed Generation/Interruptible <br /> Load Program must agree to remain on the Program for at least one year. A <br /> written Agreement stating term, incentive, terms and conditions of service, and <br /> safety and operating standards will be required. See either the Dispersed <br /> Generation Agreement or Commercial Interruptible Load Agreement for details. <br /> 4. The Customer must provide an acceptable means to transfer all, or a mutually <br /> agreed upon portion of the Customer load to the on-site generator upon <br /> notification by ERMU. If the Customer does not have on-site generation, <br /> the Customer must have a means to reduce load to a predetermined demand <br /> level (PDL) within 30 minutes following notification by ERMU. <br /> 5. Time and duration of on-site generator operation or interruption shall be at the <br /> discretion of ERMU but will not exceed 10 hours per occurrence for those with a <br /> generator or 6 hours per occurrence for those who have interruptible load. <br /> 6. Operation of Customer's generation and collateral equipment or interruption of <br /> load must not cause any reduction in the quality of service provided by ERMU to <br /> any other customer. <br /> 7. It is the Customer's responsibility to supply fuel and maintain the on-site <br /> generator and collateral equipment to meet the electric power requirements <br /> during periods of operation. Customer will be reimbursed for fuel used in <br /> excess of 80 hours run time at a rate of$.08/kilowatt-hour produced by the <br /> generator. There is no fuel reimbursement for those Customers who do not <br /> have on-site generation. <br /> 8. Notification of intent to operate Customer's on-site generator by ERMU will <br /> be made to give at least thirty minutes notice. In emergency situations, <br />