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RESOLUTION NO. 19-4 BOARD OF COMMISSIONERS ELK RIVER MUNICIPAL UTILITIES A RESOLUTION ADOPTING ELK RIVER MUNICIPAL UTILITIES POLICY REGARDING DISTRIBUTED ENERGY RESOURCES AND NET METERING;AND RULES GOVERNING THE INTERCONNECTION OF COGENERATION AND SMALL POWER PRODUCTION FACILITIES. WHEREAS, the City of Elk River is served by Elk River Municipal Utilities, which is committed to providing customers with reliable and affordable power. WHEREAS, the purpose of this Distributed Energy Resources and Net Metering Policy is to establish the qualification criteria and certain responsibilities for the delivery, interconnection, metering, and purchase of electricity from distributed generation facilities. WHEREAS, this policy, in accordance with Minnesota Statutes §216B.164, shall be implemented to give the maximum possible encouragement to cogeneration and small power production consistent with protection of the utility's ratepayers and the public. WHEREAS, the purpose of the Cogeneration and Small Power Production Rules is for Elk River Municipal Utilities to implement certain provisions of Minnesota Statutes §216B.164,the Public Utility Regulatory Policies Act of 1978, and Federal Energy Regulatory Commission regulations related to customer-owned distributed energy resources. WHEREAS, the adoption of these rules establishes that the Elk River Municipal Utilities Commission is the interpreting body and arbiter of the provisions of Minnesota Statutes §216B.164 for Elk River Municipal Utilities. WHEREAS, Elk River Municipal Utilities shall annually file a cogeneration and small power production tariff with Elk River Municipal Utilities Commission under these rules. WHEREAS, the cogeneration and small power production tariff shall include a calculation of average retail utility energy rates, standard contracts to be used with qualifying facilities, interconnection process and technical requirements, and Elk River Municipal Utilities estimated average incremental energy costs and net annual avoided capacity costs. WHERAS, all filings under these rules shall be maintained at the Elk River Municipal Utilities offices and shall be made available for public inspection during normal business hours. THEREFORE, BE IT RESOLVED that the Elk River Municipal Utilities Commission adopts the attached ERMU Policy—E.12 - Distributed Energy Resources and Net Metering Policy, and ERMU Policy—E12.a - Rules Governing the Interconnection of Cogeneration and Small Power Production Facilities.