5.1. ERMUSR 05-20-2014 - Laserfiche WebLink

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The Dispersed Generation/Interruptible program is a program that responds to wholesale electric transmission signals in the market on a daily basis. When customers enroll in the Dispersed Generation/Interruptible program the demand that is agreed to be shed is equivalent to a small power plant that the wholesale energy provider depends on to meet peak day demands. If the load is not dropped or it is not operating and subsequently cannot be dropped it is the same as the power supplier having to go out and purchase additional resources to meet demands on the system because the agreed on demand was not available for the large transmission system to use. In the event that the Dispersed Generation/Interruptible loads are not asked to reduce load over the coincidental billing peak demand hour, the customer will receive only the applicable demand credits for the metered demand that exceeds the PDL. If a customer does not have demand over the billing peak there is no credit available. DISCUSSION: One of ERMU's commercial customers has requested that a new program be offered or that special exceptions be made for them to better align with their business operations. This request has led to staff assessing the programs and determining that there are four items that require Utilities Commission discussion and consideration for action: 1. The Dispersed Generation/Interruptible program has been in a state of declining support from the wholesale power market because the value of demand has been decreasing over time. For the past three years the financial incentives have been decreasing and are going to continue to decrease into the foreseeable future. As ERMU transitions to a new wholesale power supplier that does not offer this type of program it should be considered that now may be a time to start the transition away from the Dispersed Generation/Interruptible program. A conservative position for ERMU would be to put a moratorium on new participants in this program until this topic has been evaluated by the new wholesale power supplier. 2. In an effort to make the Dispersed Generation/Interruptible Program easier to understand for all customers; staff is recommending the adoption of a new tariff sheet and contract for the program. Both the tariff sheet and Interruptible contract have been updated to reflect specific details and examples that will make the concepts easier to understand such as when and how demand credits are calculated. 3. The Utilities Commission will need to take action specific to the commercial customer requesting to be accommodated. New Plastics Plus had requested to apply for the Dispersed Generation/Interruptible program. However, at the October 9, 2012 Utility Commission meeting the Commission and New Plastics Plus mutually agreed that the Interruptible program was not a good fit for New Plastics Plus. The result of that POMEflEO BY Page 2 of 4 NATURE Reliable Public Power Provider P O W E R E D T 0 S E R V E 84