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Elk River <br />Municipal Utilities <br />13069 Orono Parkway • P.O. Box 430 <br />Elk River, MN 55330-0430 <br />January 5, 2009 <br />To: Elk River Municipal Utilities Commission <br />Jerry Takle <br />John Dietz <br />Jerry Gumphrey <br />Fr: Vance Zehringer <br />Subj: Integrity Testing Policy <br />Phone: 763.441.2020 <br />Fax: 763.441.8099 <br />New large demand customers or existing large demand customers that have installed new <br />production equipment will usually conduct tests to determine the integrity of their <br />production equipment and electrical system at some time during initial startup. This <br />testing can have a negative impact on their power bill and it should coincide with Elk <br />River Municipal Utilities billing peak resulting in a significant increase in our wholesale <br />power bill for that month. We propose to discourage the practice of performing integrity <br />tests during on-peak hours by offering an incentive to do those tests during off peak hours <br />instead. The attached proposed Policy authorizes ERMU to ignore peaks established <br />during off-peak hours for the purposes of billing if the customer agrees to shift integrity <br />testing to off peak hours only and follow the dictates of the proposed Policy. As <br />proposed, this Policy assures startup peaks will not contribute to ERMU's billing peaks. <br />