4.1. ERMUSR 11-15-2016 - Laserfiche WebLink

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Section 4 1.8% and increase the demand and large demand by approximately 3.7%. Specific rate recommendations for each class to become effective in 2017 are shown in Exhibit 4-A. ERMU's current residential monthly customer charge is $12.00, no change has been proposed for this rate component. As a point of reference, the current Connexus Energy residential customer charge is $13.50 per month. The residential increases have been applied to the seasonal energy rates as shown in Exhibit 4-A. Increases to the energy rates for off-peak storage and off-peak dual fuel have been increase, however the rate for ground source heat pumps has not been increased. For commercial non-demand customers, the current customer charge is $20.00 per month is also unchanged and the increases have been applied to the energy charges. For the commercial and industrial demand billed customers, the increases have been focused on the energy charges. As ERMU prepares for a transition from Connexus/GRE wholesale power to MMPA wholesale power, the wholesale cost basis will be weighted more to energy and less to demand than the current structure. For this cost based reason, the increases for these customers has been implemented through the energy charges and the seasonal demand charges are unchanged. It is assumed that the demand credit policy currently in place for these customers will continue through 2017 at a level of $1.00/kW-month credit. It is assumed to be discontinued after 2017. The rate options explained above are shown as Rate Option 1 in Exhibit 4-A. In Rate Option 2 in Exhibit 4-A, monthly customer charges are increased in each class and the other rate component increases are decreased slightly so overall revenues match in both options. Exhibit 4-B shows the projected operating results for the electric utility with the proposed rates. In Exhibit 4-B, it is assumed that the new rates will be effective January 1, 2017. - 2 - 82