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______________________________________________________________________________ <br /> <br />Page 1 of 1 <br /> <br /> <br /> <br /> <br /> <br />UTILITIES COMMISSION MEETING <br /> <br />TO: <br />ERMU Commission <br />FROM: <br />Tom Sagstetter – Conservation & Key Accounts Manager <br />MEETING DATE: <br />August 9, 2022 <br />AGENDA ITEM NUMBER: <br />2.5 <br />SUBJECT: <br />Transmission Transformed Service Rate <br />ACTION REQUESTED: <br />Approve the Amended Transmission Transformed Service Rate, Effective September 1, 2022 <br /> <br />BACKGROUND: <br />On November 12, 2019, the ERMU Utilities Commission approved the terms of the <br />Transmission Transformed Service Rate, effective November 13, 2019. This rate would be used <br />by Minnesota Municipal Power Agency (MMPA) and ERMU to provide large customers building <br />new facilities access to competitive energy rates. To qualify for the rate the applicant would <br />need to be connected directly to a substation on their property, meet a minimum load capacity <br />requirement, operate at a pre-defined load factor threshold, and provide for all capacity and <br />service requirements except for energy delivery. <br /> <br />DISCUSSION: <br />As a result of the changing wholesale electric market conditions, MMPA has updated the rate <br />structure for these customers. The amended rates have gone from fixed capacity charges to <br />wholesale market rates established by the Midcontinent Independent System Operator (MISO) <br />for capacity quantities above the MISO registered generation quantities. <br /> <br />This rate is for customers that are comfortable with the risks and responsibilities associated <br />with market-based rates in MISO. The customer will be responsible for managing all the MISO <br />transmission, capacity, and energy costs. The customer will also pay $0.01/kWh to be split <br />between MMPA and ERMU to cover all dispatch, billing, and administrative costs, including but <br />not limited to franchise fees, and regulatory charges collected by ERMU on all customers. <br /> <br />ATTACHMENTS: <br />• Transmission Transformed Service Rate <br /> <br />47