2.5 ERMUSR 04-13-2021 - Laserfiche WebLink

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UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Tom Sagstetter – Conservation & Key Accounts Manager MEETING DATE: AGENDA ITEM NUMBER: April 13, 2021 2.5 SUBJECT: Transmission Transformed Service Rate ACTION REQUESTED: Adopt the Transmission Transformed ServiceRate, Effective April 14, 2021 BACKGROUND: On November 12, 2019,the ERMU Utilities Commission approved the terms of the Transmission Transformed Service Rate, effective November 13, 2019. This rate would be used by Minnesota Municipal Power Agency (MMPA) andERMU to provide large customers building new facilities access to competitive energy rates. To qualify for the rate the applicant would need to be connected directly to a substation on their property, meet a minimum load capacity requirement, operate at a pre-defined load factor threshold, and provide for all capacity and service requirements except for energydelivery. DISCUSSION: Over the past few months, staff has worked to create the Transmission Transformed Service Rate based on the template provided by MMPA. ERMU has determined that to qualifythe customer would have to have projected demand greater than or equal to 10 MW and have an annual load factor greater than 75% to be eligible. This rate is for customers that are comfortable with the risks and responsibilities associated with market-based rates in the Midwest Independent System Operator (MISO). The customer will be responsible for managing all the MISO transmission, capacity, and energy costs. The customer will also pay $0.01/kWh to MMPA and ERMU to cover all dispatch, billing, and administrative costs, including but not limited to franchise fees, and regulatory charges collected by ERMU on all customers. ATTACHMENTS: Transmission Transformed Service Rate ______________________________________________________________________________ Page 1 of 1 50