4.1 ERMUSR 02-13-2018 - Laserfiche WebLink

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Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Tom Sagstetter—Conservation and Key Accounts Manager MEETING DATE: AGENDA ITEM NUMBER: February 13, 2018 4.1 SUBJECT: Distributed Generation and Net Metering Policy ACTION REQUESTED: Resolution 1 -Adopt by resolution the Distributed Generation and Net Metering Policy; and the Rules Governing the Interconnection of Cogeneration and Small Power Production Facilities. Resolution 2—Adopt by resolution the Cogeneration and Small Power Production Tariff. BACKGROUND: Every municipal electric utility should have a policy reflecting the expectations and obligations of the municipal utility and of customers who seek to interconnect their own electric generation facilities with the municipal utility distribution system. For ERMU these systems consist of wind or solar PV systems that are less than 40kW. ERMU and any customer wishing to interconnect(less than 10 MW) are subject to state statues and rules implementing those statutes. The rules established by the Minnesota Public Utilities Commission(MPUC) can be adapted to apply to municipal utilities and adopted by the utility's governing body. The attached documents (Policy, Rules, and Annual Tariff) are versions of the documents that were established by the MPUC and modified by the Minnesota Municipal Utilities Association (MMUA) and Minnesota Municipal Power Agency(MMPA)to create models for member municipals to use with their local governing bodies. These models create a standard that will allow for consistency over all municipal utilities in the state. Each municipal utility and their local governing body have the authority to adopt the utility's policies, rules, and tariff as they pertain to the interconnection of cogeneration and small power production facilities. Adopting the attached policy, rules, and tariff by the ERMU Utilities Commission will provide the Commission the authority to settle disputes when they arise between ERMU and the cogeneration and/or small power production facility. These documents will have to be reviewed annually to adjust customer compensation rates for excess electricity generated by the customer and put onto the utility system for use by other customers. If the ERMU Commission would not adopt policies, rules and tariff as presented,ERMU would continue to be under the state's rules that requires annual compensation rate filings for approval by the Minnesota Public Utilities Commission and could potentially result in costly dispute resolution proceedings by the state-level agency. Page 1 of 2 37