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Elk River <br /> Municipal Utilities UTILITIES COMMISSION MEETING <br /> TO: FROM: <br /> ERMU Commission Tom Sagstetter—Conservation and Key Accounts Manager <br /> MEETING DATE: AGENDA ITEM NUMBER: <br /> August 14, 2018 4.1 <br /> SUBJECT: <br /> Energy Management Programs <br /> ACTION REQUESTED: <br /> Approve a sunset date of December 31, 2023 for the Dual Fuel, Electric Thermal Storage Water, <br /> and Electric Thermal Storage Space Heating Programs. <br /> BACKGROUND: <br /> The Dual Fuel, and Electric Thermal Storage (ETS) Water&ETS Space Heating energy <br /> management programs were put into moratorium February 2017 as a result of the MISO market <br /> changes, obsolete communication technology, and wholesale power provider changes. At this <br /> time,the costs of upgrading the existing communication equipment is greater than any savings <br /> ERMU would recognize through peak reduction in the current MISO market and the billing <br /> practices of the new wholesale power provider rates. <br /> At the July 10 Commission Meeting, staff was directed to work on a plan to help customers <br /> transition away from the current programs. The Commission and staff discussed the option of <br /> maintaining the current program for existing customers with a sunset date of 3 to 5 years. During <br /> the sunset period,the rates would be increased to reach parity with the standard general service <br /> rate. Based on the substantial capital investments customers may have in their existing systems, <br /> the Commission and staff had consensus that the 5 year sunset period would be best. <br /> DISCUSSION: <br /> To communicate the end of the programs, staff will provide an annual notification to customers <br /> participating in the Dual Fuel, and ETS Water and Space Heating programs about the end date of <br /> December 31, 2023, and the need for customers to evaluate other options for space and/or water <br /> heating needs. The sunset period will be offered to any person purchasing or renting a property <br /> that is participating in an affected Energy Management program until the end date of December <br /> 31, 2023. As part of the annual communication, customers will be informed of any rate increases <br /> to the program they are participating in and the end date of December 31, 2023. <br /> Staff will also continue to research possible new programs during the sunset period that will <br /> provide benefit to the participating customers and ERMU. Any replacement Energy Management <br /> programs created will be marketed, communicated and made available to all ERMU residential <br /> customers. <br /> Page 1 of 1 <br /> 37 <br />