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ELECTRIC RULES <br />INTEGRITY TESTING <br />New large demand customers or existing large demand customers that have installed new <br />production equipment and conduct tests to determine the integrity of their production <br />equipment and/or electrical system or Elk River Municipal Utilities (ERMU) electric distribution <br />system can have a significant financial impact on their power bill especially if all equipment is <br />energized simultaneously. It can also have a significant financial impact on ERMU's wholesale <br />power bill if such testing coincides with the hour the monthly billing peak is established. To <br />discourage the practice of performing integrity testing during on-peak hours, ERMU will offer <br />new large demand customers or existing large demand customers that have installed new <br />production equipment an incentive to conduct all integrity testing during off-peak hours. That <br />incentive will come in the form of an agreement to waive the demand charge associated with <br />the additional peak created by integrity testing providing the following are observed: <br />1. The term large demand customer applies to any business or facility that places a demand <br />of one megawatt (1000 kW) or more on Elk River Municipal Utilities distribution system. <br />Multiple facilities under a common name or ownership cannot aggregate to meet the <br />minimum demand required to qualify for this offer. <br />2. The term off-peak hours refers to the six hours from midnight to 6 AM any weekday, or <br />the ten hours from midnight to 10 AM any weekend day. <br />3. 24 hour notice that integrity testing will be conducted will be forwarded to ERMU by <br />contacting 763-441-2020 to assure there are no extenuating circumstances that such tests <br />should not be performed on that day. Such permission shall not unreasonably be <br />withheld. <br />4. Initial startup refers to equipment and/or facility testing that is typically performed to test <br />the integrity of the electrical system serving the equipment or facility prior to the business <br />opening their doors for business to the general public. It also refers to equipment and/or <br />facility testing that may be performed to test the integrity of the electrical system serving <br />equipment that has been added to an existing business. <br />If all integrity testing is performed within the parameters described in items 1 through 4 above, <br />ERMU will ignore all demand peaks established during those off-peak hours for the purposes of <br />establishing the customer's monthly billing demand. However, should integrity testing occur <br />during both on-peak and off-peak hours, no demand peaks and/or resultant billing demand will <br />be waived for that month. <br />