6.1a ERMUSR 08-14-2018 - Laserfiche WebLink

Home Browse Search

Rate Impact Includes The RES rate impact calculations include direct costs incurred to Direct Costs meet the RES. These costs include power purchase agreements (PPAs) from renewable resources and the capital and operating costs of owned assets. There were no transmission costs to include in the rate impact. The direct costs included satisfy Order points 2C and 2E. Rate Impact Includes The RES rate impact calculations include avoided energy, capacity, Avoided Costs and emissions costs. There were no avoided transmission costs included in the rate impact. Historically,the avoided energy costs are those associated with MMPA's PPAs and owned assets. The projected avoided energy costs are based on locational marginal prices for Minnesota Hub, escalated at inflation. The avoided capacity costs are based on the MISO Zone 1 Cost of New Entry(CONE), escalated at inflation. The avoided regulatory cost of emissions is included and based on the June 6, 2018 PUC Order Establishing 2018 and 2019 Estimate of Future CO2 Regulation Costs. These costs are included starting in 2025 and estimated at the midpoint of the regulatory costs, increased at inflation. The avoided costs accounted for in the RES rate impact are in compliance with Order points 2F and 2G(2). Rate Impact Excludes The RES rate impact does not include the indirect costs of ancillary Costs for Ancillary services or base load cycling that are a result of the increase in Services and Base intermittent generation resources on the system. Based on MISO's Load Cycling market construct, MMPA sells all generation output to, and procures all their load from,the MISO market. MISO charges for ancillary services and base load cycling cannot be attributed to the RES resources. This analysis meets the requirements of Order point 2D. RES Rate Impact The tables below detail the historic and projected RES rate impact. Summary Tables They report annualized and levelized cost impacts, satisfying Order point 2H. 133