05-20-2014 ERMU MIN SPECIAL - Laserfiche WebLink

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Al Nadeau made a motion to approve the Verizon contracts. Daryl Thompson seconded the motion. Motion carried 3-0. 5.1 Dispersed Generation (On-Site Generator)/Interruptible Load Program Currently ERMU offers two programs that provide financial incentives for large commercial or industrial customers to avoid using large amounts of energy over the ERMU coincidental billing peak. The first is the Dispersed Generation/Interruptible Program. This program requires that a customer completely disconnect from the distribution system when called on or reduce their load to a Pre-determined Demand Level (PDL). Customers can either reduce demand by using a back-up generator or they can manually decrease load to reach their PDL without a back-up generator. The Dispersed Generation/Interruptible Program is a program that is offered through the ERMU wholesale power provider and is strongly recommended for only customers who have back-up generation. If the customer is not operating when called to shed load,there is no load to provide a monthly billing credit. If the customer is running and does not drop load,they can be financially penalized and removed from the program. The second program is the Off-Peak Program where customers customize their production hours to avoid major energy consumption between the hours of 3:00 p.m. and 10:00 p.m. This program has lower demand costs for the entire month as long as the customer does not run Monday through Friday between the peak hours of 3:00 to 10:00 p.m. Any demand that is recorded during the peak hours is billed at the applicable Demand Rate for that month. Tom Sagstetter said that one of ERMU's commercial customers has requested that a new program be offered or special exceptions be made for them to better align with their business operations. This has led to staff assessing the programs and determining a few different options. He also said that the Dispersed Generation/Interruptible program has been in a state of declining support due to decreasing financial incentives. 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 program. The preferred option would be for the commission to put a moratorium on new participants in this program until further evaluation is done relating to the transition to our new wholesale power supplier. Two other options for the Commission's consideration are to begin to phase out of the program in light of the transition to a new wholesale power supplier or continue to offer the program and approve an updated tariff sheet and contract for the program. Discussion followed. Al Nadeau made a motion to put a moratorium on the Dispersed Generation/Interruptible program. Daryl Thompson seconded the motion. Motion carried 3-0. Al Nadeau made a motion to approve the updated Dispersed Generation/Interruptible program tariff sheet and contract.Daryl Thompson seconded the motion. Motion carried 3-0. Page 3 Special meeting of the Elk River Municipal Utilities Commission May 20,2014