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DISCUSSION: <br /> ERMU used the model documents provided by MMUA and MMPA to create the attached <br /> ERMU policy,rules and tariff. On an annual basis, at a minimum,the Commission will have to <br /> review and adopt Schedules 1 and 5 of the tariff. These two schedules reflect the average retail <br /> rate for each customer class that a customer would receive for any excess generation they chose <br /> to be reimbursed for on a monthly or annual basis and the avoided costs to customers for <br /> distributed generation from the wholesale power providers. <br /> The policy, rules, and tariff together represent a great deal of material. Developing standards for <br /> interconnecting cogeneration and small power production facilities for the state of Minnesota is a <br /> daunting task. The proposed tariff is much different than any other tariff of ERMU. This tariff <br /> consists of very detailed rules, requirements, and processes that are not applicable to customers <br /> that are retail consumers of electricity. This process has taken years and is still under review. <br /> There are many interested parties that are involved in this process because it impacts over 170 <br /> utilities,their customers, and renewable energy developers. <br /> It's important that the ERMU Utilities Commission adopt the policy, rules, and tariff because by <br /> doing so, it should preserve the right of the ERMU Utility Commission to retain control over <br /> these issues. If the ERMU Utility Commission does not take action on these items, customers <br /> would have the right to dispute a utility's actions regarding cogeneration and small power <br /> production facilities with the Minnesota Public Utilities Commission. <br /> FINANCIAL IMPACT: <br /> N/A <br /> ATTACHMENTS: <br /> • Resolution No.18-1 —Adopting the Distributed Generation and Net Metering Policy; and <br /> Rules Governing the Interconnection of Cogeneration and Small Power Production <br /> Facilities <br /> • Proposed ERMU Policy—E.12—Distributed Generation and Net Metering Policy <br /> • Proposed ERMU Policy—E.12a—Rules Governing the Interconnection of Cogeneration <br /> and Small Power Production Facilities <br /> • Resolution No. 18-2—Adopting the Cogeneration and Small Power Production Tariff <br /> • Proposed ERMU Policy—E.12b—Cogeneration and Small Power Production Facilities <br /> Tariff <br /> Page 2 of 2 <br /> 38 <br />