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Elk River <br /> Municipal Utilities UTILITIES COMMISSION MEETING <br /> TO: FROM: <br /> Elk River Municipal Utilities Commission Tom Sagstetter—Conservation and Key Accounts <br /> John Dietz—Chair Manager <br /> Al Nadeau—Vice Chair <br /> Daryl Thompson—Trustee <br /> MEETING DATE: AGENDA ITEM NUMBER: <br /> February 14, 2017 5.3 <br /> SUBJECT: <br /> Load Management Program Moratorium <br /> BACKGROUND: <br /> On September 8, 2008 Connexus Energy (Connexus) gave notice to terminate the wholesale <br /> power purchase agreement effective September 30, 2018. As a result of the termination ERMU <br /> has entered into a new wholesale power purchase agreement with Minnesota Municipal Power <br /> Agency(MMPA)beginning October 1, 2018. <br /> There are considerable differences in the wholesale rate structures of the two different suppliers. <br /> As part of the transition to MMPA, ERMU staff is evaluating load management program <br /> changes that are beneficial to the customers and are not subsidized by other customers not <br /> participating in a load management program. <br /> DISCUSSION: <br /> At this time based on the price signals from MMPA and the current and predicted market rates in <br /> the Midwest Independent System Operator(MISO) system, staff is recommending a moratorium <br /> on enrolling new customers in any load management programs other than the electric vehicle <br /> charging program. <br /> Factors that impact the cost basis for the load management programs include; on and off peak <br /> energy(kWh) prices, capacity rates (kW), how each wholesale power supplier charges for <br /> monthly billing peaks (coincidental and non-coincidental), changes in capacity charges in the <br /> MISO market, and cost of equipment. <br /> Staff recommends placing the load management programs, except EV-Charging, into a <br /> moratorium until such time as new pricing for the programs can be determined or an exit plan <br /> from load management can be determined. Staff is researching possible options and exit <br /> strategies with consultants and other utilities that have experienced similar situations. <br /> rallEREI IY <br /> Page 1 of 2 NATURE <br /> Reliable Public® <br /> Power Provider POWERED T O $ERY E <br /> 133 <br />