5.4. ERMUSR 09-10-2013 - Laserfiche WebLink

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Elk River t Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Tom Sagstetter—Conservation and Key Accounts John Dietz—Chair Manager Al Nadeau—Vice Chair Daryl Thompson—Trustee _ MEETING DATE: AGENDA ITEM NUMBER: September 10, 2013 5.4 SUBJECT: Integrity Testing and Demand Bill BACKGROUND: In January 2009, the ERMU Commission approved the Integrity Testing Policy that allowed for large industrial customers to test equipment during off-peak hours and would not receive a demand charge on the testing demand. The off-peak hours in the policy are from 12 midnight to 6:00 a.m. Monday through Friday, and 12 midnight to 10:00 a.m. on Saturday and Sunday. The policy also states that the testing dates and times are to be communicated to ERMU staff 24 hours prior to the integrity testing. The Integrity Testing Policy is included for reference. DISCUSSION: On May 24th, 2013, a large industrial customer, who is required to follow this policy, performed integrity testing of equipment that caused the demand to exceed their normal on-peak demand for the month by 1,459 kW. While the customer did not provide 24 hours of notice of integrity testing and the testing was outside the off-peak hours outlined in the integrity testing policy, staff is looking for a discussion on providing relief for the demand charges for testing in May. The testing period was only 45 minutes, did not occur during the demand billing peak even though it was not during off-peak hours, and causes no additional cost burden to other rate classes of customers. ACTION REQUESTED: Staff is looking for discussion on an exception to the policy, options for resolution, and desired direction from the Commission. ATTACHMENTS: • Integrity Testing Policy rauESEO it .� Page 1 of 1 INAUR Reliable lProvitldeer POWERED To SERVE 94