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Eli River <br />Municipal I tilities UTILITIES COMMISSION MEETING <br />TO: <br />FROM: <br />ERMU Commission <br />Tom Sagstetter —Conservation & Key Accounts Manager <br />MEETING DATE: <br />AGENDA ITEM NUMBER: <br />January 10, 2023 <br />2.3 <br />SUBJECT: <br />Cogeneration and Small Power Production Tariff - Schedules 1 and 4 <br />ACTION REQUESTED: <br />Adopt the revised Schedule 1 and 4 of the Cogeneration and Small Power Production Tariff <br />BACKGROUND: <br />Every municipal electric utility should have a policy reflecting the expectations and obligations <br />of the utility and customers who seek to interconnect their own electric generation facilities <br />with the distribution system. For ERMU these facilities consist of wind or solar photovoltaic <br />systems that are less than 40kW. <br />To allow for consistency over all municipals in the state, ERMU staff continues to use models <br />established by the Minnesota Public Utilities Commission and modified by the Minnesota <br />Municipal Utilities Association and Minnesota Municipal Power Agency. The policies were <br />adopted by the Commission at the February 13, 2018, commission meeting, and revised policies <br />were adopted at the May 14, 2019, commission meeting. <br />DISCUSSION: <br />The policies and rules outline that, at least annually, the Commission will review and adopt <br />Schedules 1 and 4 of the Cogeneration and Small Power Production Tariff. The two schedules <br />reflect the average retail rates for the applicable class of customer and the method of <br />reimbursement selected by the customer owning the distributed generation facility. Attached <br />are the updated schedules for 2023. <br />ATTACHMENTS: <br />• ERMU Policy — E.12b — Cogeneration and Small Power Production Tariff - Schedule 1— <br />Average Retail Utility Energy Rate <br />• ERMU Policy— E.12b —Cogeneration and Small Power Production Tariff -Schedule 4— <br />Average Incremental Energy Costs <br />Page 1 of 1 <br />