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Elk River <br /> Municipal Utilities <br /> 322 King Avenue phone: 763.441.2020 <br /> Elk River,MN 55330 Fax.763.441.8099 <br /> December 1, 2003 <br /> To: Elk River Municipal Utilities Commission <br /> John Dietz <br /> Jerry Takle <br /> James Tralle <br /> From: Bryan Adams <br /> Subject: Air Conditioning Rebate <br /> During our budgeting process, we review our rates and rebates. One issue that has again <br /> risen, is the $6/month controlled air conditioning rebate for the 5 summer months. Is this <br /> rebate to small,just right, or to large? This program entails allowing the electric utility to <br /> interrupt the customers air conditioner during periods of high demand. Interruption <br /> durations are typically 15 minutes every 30 minutes. The house will heat up generally 2 <br /> to 3 degrees. The customer receives a$30 rebate per year. The utility pays to have the <br /> air conditioner controller installed on the air conditioner at an approximate cost of$220 <br /> plus maintenance. <br /> Attached is Vance Zehringer's memo with his analysis. This analysis reflects, loosing <br /> $114.28/year per uncontrolled air conditioner and $40.94/year per controlled air <br /> conditioner. Although the assumptions are questionable in these analysis',there is no <br /> doubt we loose less money with a controlled air conditioner. Connexus has abandoned <br /> this program. Their financial analysis indicated the financial difference between <br /> controlling and not controlling air conditioners is not much, but the maintenance and after <br /> hour calls make it difficult to justify the program. <br /> I justify this program because it does keep the electric demand lower, thus delays <br /> building power plants (Great River Energy controlled air conditioning load is 105/MW±). <br /> Customers now oversize their air conditioning units in their homes to compensate for the <br /> home heating up, which negates some of the demand savings. In previous discussion <br /> with this commission about this issue, none of the commissioners utilized this program <br /> because during hot weather. They wanted to stay cool and not have anybody controlling <br /> their air conditioning. The $30 rebate was irrelevant. Is this still the case? <br /> Attached is our brochure for this program. Some staff members would like to see a <br /> higher rebate to encourage more customer participation. I would recommend our existing <br /> program but do a better job of promoting. <br />