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��i <br />Elk River , <br />Municipal Utilities UTILITIES COMMISSION MEETING <br />TO: <br />FROM: <br />ERMU Commission <br />Sara Youngs —Administrations Director <br />MEETING DATE: <br />AGENDA ITEM NUMBER: <br />July 9, 2024 <br />2.3 <br />SUBJECT: <br />Update Cogeneration and Small Power Production Tariff - Schedules 1 and 2 <br />ACTION REQUESTED: <br />Approve the update to the 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 which are modified by the Minnesota <br />Municipal Utilities Association (MMUA) and Minnesota Municipal Power Agency (MMPA). The <br />policies were adopted by the Commission at the February 13, 2018, commission meeting, and <br />revised policies were adopted at the May 14, 2019, commission meeting. <br />The policies and rules outline that, at least annually, the Commission will review and adopt <br />Schedules 1 and 2 of the Cogeneration and Small Power Production Tariff. The two schedules <br />reflect the average retail rates for the applicable class of customer. The customer elects the <br />rate schedule with the method of reimbursement to be based on the size of the facility. <br />Attached are the updated schedules for 2024. <br />DISCUSSION: <br />To ensure that all distributed energy resource (DER) installers and ERMU customers are aware <br />of the monthly fees that may be associated with the installation of a DER system, we are adding <br />a footnote at the end of the Cogeneration and Small Power Production Tariff- Schedule 1 and 2 <br />stating, "As of January 2024, a monthly Grid Access Fee will apply to all interconnection <br />applications. Please review ERMU's fee schedule for the amount." <br />ATTACHMENTS: <br />Updated Cogeneration and Small Power Production Tariff— Schedules 1 and 2 <br />Page 1 of 1 <br />39 <br />