2.7 ERMUSR 02-13-2024 - Laserfiche WebLink

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4r,;.Z, Elk Riv Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Sara Youngs —Administrations Director MEETING DATE: AGENDA ITEM NUMBER: February 13, 2024 2.7 SUBJECT: Transmission Transformed Service Rate ACTION REQUESTED: Approve the amended Transmission Transformed Service Rate, effective February 13, 2024 BACKGROUND: On November 12, 2019, the ERMU Utilities Commission approved the terms of the Transmission Transformed Service Rate, effective November 13, 2019. This rate would be used by Minnesota Municipal Power Agency (MMPA) and ERMU to provide large customers building new facilities access to competitive energy rates. To qualify for the rate the applicant would need to be connected directly to a substation on their property, meet a minimum load capacity requirement, operate at a pre -defined load factor threshold, and provide for all capacity and service requirements except for energy delivery. DISCUSSION: As a result of the changing wholesale electric market conditions, MMPA has updated the rate structure for these customers. The amended rates have gone from fixed capacity charges to wholesale market rates established by the Midcontinent Independent System Operator (MISO) for capacity quantities above the MISO registered generation quantities. This rate is for customers that are comfortable with the risks and responsibilities associated with market -based rates in MISO. The customer will be responsible for managing all the MISO transmission, capacity, and energy costs. The customer will also pay $0.01/kWh to be split between MMPA and ERMU to cover all dispatch, billing, and administrative costs, including but not limited to franchise fees, and regulatory charges collected by ERMU on all customers. ATTACHMENTS: • Transmission Transformed Service Rate Page 1 of 1 70