4.5 ERMU 12-12-2023 - Laserfiche WebLink

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Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Sara Youngs —Administrations Director MEETING DATE: AGENDA ITEM NUMBER: December 12, 2023 4.5 SUBJECT: Energy Management Programs ACTION REQUESTED: Approve extension of a sunset date from December 31, 2023, to December 31, 2025, for the Dual Fuel, Electric Thermal Storage Water, and Electric Thermal Storage Space Heating programs. BACKGROUND: The Dual Fuel, and Electric Thermal Storage (ETS) Water & ETS Space Heating Energy Management programs were put into moratorium in February 2017 as a result of Midcontinent Independent System Operator (MISO) market changes, obsolete communication technology, and wholesale power provider changes. At this time, the cost of upgrading the existing communication equipment is greater than any savings ERMU would recognize through peak reduction in the current MISO market and the billing practices of our wholesale power provider rates. In 2018, staff was directed to work on a plan to help customers transition away from the current programs. The Commission and staff discussed the option of maintaining the current program for existing customers with a sunset date of 3 to 5 years. During the sunset period, the rates would be increased to reach parity with the standard general service rate. Based on the substantial capital investments customers may have in their existing systems, the Commission and staff had consensus that the 5-year sunset period would be best. As part of the communication plan staff was to provide an annual notification to customers participating in the Dual Fuel, and ETS Water and Space Heating programs about the end date of December 31, 2023, and the need for customers to evaluate other options for space and/or water heating needs. ERMU failed to communicate the sunset date with participating customers at the end of 2022. The sunset period was offered to any person purchasing or renting a property that is participating in an affected Energy Management program until the end date of December 31, 2023. In addition, staff was to research possible new programs during the sunset period that will provide benefit to the participating customers and ERMU. Any replacement Energy Page Iof2 73