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Elk River <br />Municipal Utilities <br />13069 Orono Parkway • P.O. Box 430 <br />Elk River, MN 55330-0430 <br />Dec 3, 2008 <br />To: Elk River Municipal Utilities Commission <br />Jerry Takle <br />John Dietz <br />Jerry Gumphrey <br />From: Vance Zehringer <br />Subject: Recommended Changes in CIP Programs <br />Phone: 763.441.2020 <br />Fax: 763.441.8099 <br />The Energy Star Appliance Rebate Program has been an effective CIP program that <br />warrants continuation with the following recommended changes: <br />Ground-Source Heat Pumps - GRE recently increased their rebate to $400 per ton <br />in an effort to further promote the most energy efficient heating and cooling system <br />available today. We recommend increasing ERMU's rebate from $200 per ton to <br />$400 per ton to match GRE's reimbursement to us. This rebate applies to ground- <br />source heat pumps used in residential applications only. <br />Clothes Washers -Our existing energy staz clothes washer rebate is $75. This <br />applies to all energy staz clothes washers regazdless of the amount of water used. <br />Since ERMU is also a water utility, and we have a vested interest in conserving <br />water, we recommend setting a two tier rebate at $50 and $75 with the larger rebate <br />applying to the more water efficient clothes washers. Water use per cubic foot of <br />washer volume is called water factor. This information is readily available on the <br />EPA Energy Star website and is updated frequently. We recommend applying the <br />$75 rebate to those energy staz clothes washers with a water factor of 4.5 or lower <br />and applying the $50 rebate to energy staz clothes washers with a water factor of 4.6 <br />to 8.0 (clothes washers exceeding a water factor of 8 cannot be listed as energy <br />star compliant). <br />Our Wind Power Program chazges customers a premium of $1.90 per unit of energy. <br />One unit is 100 kilowatt-hours. In 2009, the wholesale rate from GRE will be $.40 per <br />unit for wind power purchases. Conaexus Energy's 2008 wind power rate is $.61 per <br />unit and will probably remain close to that in 2009. We recommend reducing ERMU's <br />2009 Wind Power rate to $1.00 per unit. <br />All other 2009 CIl' Programs continue with no additional changes recommended. <br />