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HomeMy WebLinkAbout(04d) Energy Peak Shavecrr~~ of sT Jc~rvH MEETING DATE: Council Agenda Item 4 d November 6, 2008 AGENDA ITEM: Energy Peak Shave -Requested Action: Authorize execution of an agreement with Northern States Power Company to participate in the Peak Control Program for a period of five years. SUBMITTED BY: Public Works/Administration BOARD/COMMISSION/COMMITTEE RECOMMENDATION: PREVIOUS COUNCIL ACTION: The Council considered participation in Xcel's Peak Control Program at the October 16, 2008 Council meeting and requested additional information be provided at the next Council meeting. The Council was looking for the financial impact and time commitment for participation. BACKGROUND INFORMATION: Since the last Council meeting Xcel has provided the City with data that illustrates each time there was a peak control event. When a peak control event occurs the City converts to generator power which requires staff to convert. The City would be required to pay staff overtime when the peak event occurs outside of working hours. The table included in your packet illustrates the history of the events with date and time. Staff has added a column illustrating what the City staff time would have cost the City if we were a participant in the program. Keep in mind that it will most likely take two employees, so the cost must be doubled. In addition to staff time the City would also incur fuels costs and they are illustrated on the table as well. Based on the information provided, the City would benefit from participating in the program. Xcel has calculated the saving on energy cost to be $ 3,636.00. In 2008 there were no peak events that required conversion to generators. The contract with Xcel is for a five year period and the City has the option to review the program after one year. If after one year the City does not want to participate we can end the agreement, paying back the rates savings received during that twelve month period. BUDGET/FISCAL IMPACT: Savings of $ 2,800 to$ 3,636 annually, depending on number of events. ATTACHMENTS: Cost Analysis for participation, Tier Two rate information, Rules for Peak control Program, Agreement. REQUESTED COUNCIL ACTION: Authorize execution of the agreement between Northern States Power Company and the City of St. Joseph to participate in the Peak Shave Program for a five year period. City of St. Joseph Peak Control Event History -Cost Analysis As of October 28, 2008 Note: St. Joseph is considered Tier 2, Subgroup 3, Even Day for Peak Control Events. Xcel Energy provided the history of the Peak Control Events for 2000 through 2008 for each effected group. An average maintenance rate and gas rate were applied to the events to determine the approximate cost for the program per year. The maintenance rate includes wages, FICA, Medicare and PERA. Assumed generator uses 5 gallons per hour. Maintenance Maintenance Hourly Total cost Year/Date Start Time End Time Hours OT hours OT Rate Cost Gas Rate Gas Costs per year 2008 No Events $ 34.60 $ - $ 18.05 $ - 2007 $ - $ - $ - June 26th 3pm 7pm 4 2 $ 33.51 $ 67.02 $ 15.10 $ 60.40 July 26th 2pm 4pm 2 2 $ 33.51 $ 67.02 $ 15.10 $ 30.20 2006 $ 134.04 $ 90.60 $ 224.64 July 17th 4:30pm 7pm 2.5 4 $ 35.32 $ 141.28 $ 14.20 $ 35.50 July 28th 1:30pm 6pm 4.5 2 $ 35.32 $ 70.64 $ 14.20 $ 63.90 July 31st fpm 9pm 8 2 $ 35.32 $ 70.64 $ 14.20 $ 113.60 2005 $ 282.56 $ 213.00 $ 495.56 July 14th lpm 6:30pm 5.5 2 $ 33.75 $ 67.50 $ 11.30 $ 62.15 August 2nd 1:30pm 7:30pm 6 2 $ 33.75 $ 67.50 $ 11.30 $ 67.80 August 8th 2pm 6:45pm 4.75 2 $ 33.75 $ 67.50 $ 11.30 $ 53.68 2004 $ 202.50 $ 183.63 $ 386.13 No Events $ 33.33 $ - $ 8.85 $ - 2003 $ - $ - $ - August 18th 12:30pm 9:30pm 9 2 $ 33.29 $ 66.58 $ 5.90 $ 53.10 September 8th 11:30am 8:30pm 9 2 $ 33.29 $ 66.58 $ 5.90 $ 53.10 2002 $ 133.16 $ 106.20 $ 239.36 July 1st 12:30pm 5:30pm 5 2 $ 31.92 $ 63.84 $ 5.15 $ 25.75 July 17th 2:15pm 6pm 3.75 2 $ 31.92 $ 63.84 $ 5.15 $ 19.31 July 30th 2:30pm 6:15pm 3.75 2 $ 31.92 $ 63.84 $ 5.15 $ 19.31 2001 $ 191.52 $ 64.38 $ 255.90 May 15th 12:30pm 7:30pm 7 2 $ 30.93 $ 61.86 $ 5.70 $ 39.90 June 25th 3:30pm 5pm 1.5 2 $ 30.93 $ 61.86 $ 5.70 $ 8.55 July 26th 3pm 6pm 3 2 $ 30.93 $ 61.86 $ 5.70 $ 17.10 July 27th 3:30pm 5:30pm 2 2 $ 30.93 $ 61.86 $ 5.70 $ 11.40 July 28th 3:30pm 7pm 3.5 2 $ 30.93 $ 61.86 $ 5.70 $ 19.95 July 9th 2:45pm 7:45pm 5 2 $ 30.93 $ 61.86 $ 5.70 $ 28.50 July 18th 2:30pm 6:45pm 4.25 2 $ 30.93 $ 61.86 $ 5.70 $ 24.23 July 19th 2:30pm 6:45pm 4.25 2 $ 30.93 $ 61.86 $ 5.70 $ 24.23 July 20th 12:45pm 5:30pm 4.75 2 $ 30.93 $ 61.86 $ 5.70 $ 27.08 July 30th 2:15pm 7pm 4.75 2 $ 30.93 $ 61.86 $ 5.70 $ 27.08 July 31st 12:30pm 9pm 8.5 2 $ 30.93 $ 61.86 $ 5.70 $ 48.45 August 6th 10:45am 9:15pm 10.5 2 $ 30.93 $ 61.86 $ 5.70 $ 59.85 August 7th 12:30pm 7:45pm 7.25 2 $ 30.93 $ 61.86 $ 5.70 $ 41.33 August 8th 12:30pm 6pm 5.5 2 $ 30.93 $ 61.86 $ 5.70 $ 31.35 2000 $ 866.04 $ 408.98 $ 1,275.02 No Events $ 29.97 $ - $ 7.30 $ - $ - $ - $ - Average Costs $ 201.09 $ 118.53 $ 319.62 Peak-Controlled Tiered 2 Rate (Electric Reduction Savings) Customers can help Xcel Energy reduce peak demand by signing up for the Peak-Controlled Tier 2 Rate. As a result, they can save up to 51 percent on annual demand charges. To participate, customers sign a five year contract in which they commit to give six months cancellation notice upon completion of the initial 5 year contract term. How Does the Program Work? To qualify for the Peak-Controlled Tier 2 Rate, customers must be able to reduce their demand for electric power to a predetermined demand level (PDL) when Xcel Energy experiences a peak demand period. Peak demand periods usually occur on hot, humid, summer days and last approximately 6.5 to 8.5 hours. Predetermined Demand Level (PDL) With the help of an Xcel Energy sales representative, customers determine their PDL, which must represent a demand reduction of 50 kilowatts (kW) or more during the summer months of June, July, August or September. The PDL then serves as the maximum amount of demand the customer can use during a control period. Customers that can't control at least 50 kW do not qualify for this rate. If a customer's controllable load drops below 50 kW, he or she must return to the General Service Rate. Control Periods Xcel Energy goal is to notify customers at least one hour before a control period, which normally occurs on weekdays during the summer months (June through September}. However, in an emergency, Xcel Energy may request a control period at any time and during any season with only a short notice. We will only control as many customers as necessary and for only as long as necessary. Control periods are limited to no more than 80 hours per calendar year for Peak-Controlled Tier 2 customers. Xcel Energy bills all of the customer's controllable demand at the Peak-Controlled Tier 2 discount rate, regardless of how many control period hours are actually experienced. Xcel Energy divides its Peak-Controlled Tier 2 service customers into two groups: Even Calendar Day and Odd Calendar Day. A normal peak day requires only one control group. On control days, Xcel Energy staff notifies this group to control its energy use (the Even group on even-numbered days and the Odd group on odd-numbered days). This "even-odd" plan helps prevent back-to-back control period days and minimizes a customer's total number of control period days. On a borderline system peak day, Xcel Energy will notify one group to control its energy use (the Even group on even-numbered days and the Odd group on odd-numbered days). The group not called initially on the borderline system peak day potentially may be notified to control their load if Xcel Energy's load continues to grow. However, a system peak day may require both customer groups to control their demand. Please see the Peak-Controlled Tier 2 Control Period Guidelines for a sample control schedule. Customers have access to convenient toll-free phone numbers that update them on the likelihood of a control period. The Peak-Controlled Tier 2 number for odd-day customers is 1-800-824-8429, for even-day customers the number is 1-800-545-3970. Control Period Penalties The penalty charges for Tier 2 customers who exceed their predetermined demand level (PDL) during control periods are $8.00 per excess kW. The penalty is calculated by multiplying the specific penalty charge by the excess kW for each control period (See example below). Control Period Date PDL Peak Demand Excess Demand Penalt Jul 18th 50 60 kW 10 kW $8 * 10 kW = $80 Jul 19th 50 70 kW 20 kW 8 * 20 kW = 160 Total Penalt Char es for Au ust $240 In addition to the new penalty charges, the customer's firm demand charges for the billing month (using the example above) will be the difference between their monthly peak demand and their highest demand on a control period day in that month. In this case, since 70 kW was the highest demand during a control period, this customer's firm demand for their August billing month is 70 kW. Performance Factor Level The performance factor is a rating that reflects the extent to which a customer's organization can reduce its demand at the times that Xcel Energy needs conservation the most. The more demand a customer's organization can reduce during peak periods, the higher its performance factor and potential savings. To determine the performance factor, Xcel Energy first calculates the customer's July/August controllable demand. The July/August controllable demand is the average of the customer's July/August maximum demand recorded on the meter between 1:00 p.m. and 7:00 p.m. minus the customer's PDL. The July/August controllable demand figure then is divided by the customer's maximum annual controllable demand; this is the customer's performance factor level. [Note: The annual controllable demand is the maximum annual demand minus the PDL.] If the performance factor is at least 85%, the customer's assigned performance factor is level C discount, the highest discount. If the performance factor is between 65 - 84%, the customer's assigned performance factor is level B discount. If the performance factor is less than 65%, the customer's assigned performance factor is level A discount. Discounts per Controllable Demand (kW) Performance Factor Tier 1 Tier 2 Level A: Winter NA $1.95 Performance Factor < 65% Summer NA 5.29 Avera e* 3.06 Level B: Winter $2.89 $2.09 65% <_ Performance Factor >_ 84% Summer 6.23 5.63 Avera e* 4.00 3.27 Level C: Winter $3.39 $2.49 Performance Factor >_ 85% Summer 6.23 6.03 Avera e* 4.50 3.67 The discounts are subtracted from your controllable demand charges. *weighted average (8 winter months and 4 summer months) Average of 3 Highest July and 3 Highest August -PDL Demands* Highest Unadjusted Demand in Previous -PDL 12 Months *cun-ently measured on weekdays from 1 to 7 p.m. Customer Example: Average of July/August demand: Annual Maximum demand: PDL Performance Factor = Performance Factor (A percentage between 0 and 100) 3000 kW 3100 kW 20 kW 3,000 - 20 = 97% 3,100 - 20 Pertormance Factor > 85%; Level C discount When a customer signs up for the Tier 2 rate, Xcel Energy will determine their performance factor level (A, B, or C) based on their previous year energy use. Customers must have had a recording device installed on their meters for the previous July and August in order for Xcel Energy to calculate their performance factor. If no data is available, the customer will begin at Level A. Upon completion of the first summer, if it is determined that the customers performance factor level was greater than Level A, they may be eligible for retroactive credit. Performance factors are reviewed at the end of each year and, when necessary, are adjusted up or down for the following year. In general, customers who use electricity consistently throughout the year, such as manufacturing plants, foundries, hospitals and some warehouses, tend to have higher performance factors. Customers who are seasonal in nature, such as schools or seasonal manufacturers, and customers who use their facilities on weeknights and weekends, such as churches and meeting halls, generally will be at performance factor Level A. Contractual Agreement After customers decide how much demand they can control during a control period, they then sign a five-year contract with Xcel Energy, agreeing to limit their demand to their PDL when Xcel Energy sets a control period. Annual Normal Cancel Cancel Contract State Hours Day Season'' Penalty Notice Penalty Length innesota Tier1 150 Both Summer $10/kW 36 Mos 36 Mos 10 years Tier 2 80 Odd/Even Summer $8/kW 6 Mos 18 Mos 5 years Northem States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy lnc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIG RATE BOOK - MPUC N0.2 RULES FOR APPLICATION OF PEAK CONTROLLED TIERED SERVICES Section No. 5 1st Revised Sheet No. 48 1. Customer has the responsibility of controlling own load to Predetermined Demand Levet. 2. Customer must allow Company to inspect and approve the load control installation and equipment provided by customer. 3. If controlled demand is 10,000 kW or larger, Company may require customer to: a. Provide auxiliary contacts for remote indication of position of switch or circuit breaker used to control demand and wire auxiliary contacts into a connection, point designated by Company, b. Install the remote breaker indication equipment provided by Company, and c. Provide a continuous 120 volt AC power source at the connection point for operation of the Company remote breaker indication equipment. 4. Company will endeavor to give customer one hour notice of commencement of con#rol period, and as much additional Halite as is practical. However, control period may be commenced without notice should Company determine such action is necessary. 5. Failure to Control Charge: An additional charge of $8.00 ($10.00 for Tier t) per kW will apply during each Company specified control period to the amount by which customers Maximum Adjusted Demand or Maximum Adjusted On Peak Period Demand exceeds their predetermined demand level. After three such customer failures to control load to their Predetermined Demand Level, Company reserves the right to increase the Predetermined Demand Level, or transfer customer to General Service or General Time of Day Service and apply the cancellation charge specified in customer's Electric Service Agreement. 6. The duration and frequency of control periods shall be at the discretion of Company. Control periods will normally occur when: a. Company expects a reasonable possibility of system load levels surpassing the level for which NSP has sufficient accredited capacity under the Mid-Continent Area Power Poof Agreement, including reserve requirements, or b. In Company's opinion, the reliability of the system is endangered. (Continued on Sheet No. 5-49) .~~.~ Date Filed: 11-02-05 ey: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company Docket No. E002fGR-05-1428 Order Date: 09-01-08 T T C T T T D S:1General-0rfices.GO-01tPSF1RPJRateslCunentlMn_eleclME 5048 rOt.doc Northern States Power Company, a Minnesota corporation and wholly owned subsidiary afXcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE t~00K - MPUC N0.2 RULES FOR APPLICATION OF PEAK CONTROLLED TIERED 5ERVICES {ContInued) Section No. 5 15t Revised Sheet No. 49 7. Customer must execute an Electric Service Agreement with Company which will include: Peak ControGed Tiered Service -Tier 1 a. A minimum initial 10 year term of service which includes a one year trial period and a three year cancellation notice effective after the initial term of service, b. The Predetermined Demand Level, or the fixed Controllable Demand if Optional PDL is selected which may be revised subject to approval by Company, c. Minimum demand charge differential, d. Maximum 150 hours of interruption, e. Cancellation charge farms, and f. Control period notice. Peak Controlled Tiered Service -Tier 2 and Peak Controlled Service (Closed) a. A minimum initial five year term of service which includes a one year trial period and a six month cancellation notice effective after the initial term of service, b. The Predetermined Demand Level, or the fixed Controllable Demand if Optional PDL is selected which may be revised subject to approval by Company, c. Minimum demand charge differential, d. Maximum 80 hours of interruption, e. Cancellation charge terms, and f. Control period notice. 8. Peak Controlled Tiered Service customers choosing the Tier 1 rate option will be subject to an additional monthly charge for a Company approved and installed two-way communica#ians system. The system equipment allows NSP to determine remotely customer load levels and to notify customers of control periods. 9. Minimum Controllable Demand during the Company's peak season shall be 56 kW. 10. Company shall not be liable for any loss or damage caused by or resulting from any intercuption of service. 11. Company will determine, at a service location designated by Company, the number of services supplied. Customers requesting special facilities will be charged the additional costs incurred for such facilities. {Continued on Sheet No. 5-50} Date Filed: 11-02-05 By: Cynthia L_ Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company Docket No. E002/GR-05-1428 Order Date: 09-01-06 rc C TC C TC S:1Gener2l-Offices-GO-01tPSF1RArF2aleslCarrenilMn eleclME 5049 r0l.doc Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC N0.2 RULES FOR APPLICATION OF PEAK CONTROLLED TIERED SERVICES (Continued) Section No. 5 1st Revised Sheet No. 50 12. Customers choosing the Predetermined Demand Level option requiring a fixed demand reduction will be subject to an additional charge for metering and billing when additional metering equipment is necessary. The additional charge is $15.00 per month for an application using a single meter in close proximity to customer's service point. The additional charge for more complex applications will t)e based on the actual costs of the specific application. 13. Company will maintain Firm Demand Charge rates at the General Service and General Time of Day Service levels, whichever is applicable. 14. Any customer with generating equipment which is operated in parallel with Company must comply with all requirements associated with parallel operations as specified in the General Rules and Regulations of the Company. 15. Any load served by customer generation during Company requested control periods must be served by Company at all other times. 16. Customers selecting Peak Controlled Tiered Services will normally remain at a specific Performance Factor level for a minimum of one year, subject to the Company's discretion. The Company may transfer customers between Performance Factor levels following verification of a customer's performance, as defined in the applicable rate schedule and as specified in the customer's Electric Service Agreement. This rate contemplates that increases in summer Controllable Demand, which thereby affect a customer's Performance Factor level, will be at sufficient consumption levels to yield a July and August calendar month load factor of 34°10 or greater. The Company reserves the right to limit the customer's eligibility to be on a higher Performance Factor level due to the above restriction. Date Filed: 11-02-05 By: Cynthia L, Lesher Effective Date: President and CEO of Northern States Power Company Docket No. E0021GR-05-1428 Order Date: 02-01-07 09-01-06 T R T T T T T T T T S:tGeneral-Offices-GO.011PSFlRA1RateslCwrenttMn ~ec\NIE S 060 r0l.doc Premise No. «acnt» Electric Service Agreement Peak-Controlled Tiered Services THIS AGREEMENT, Made this «aday day of «amonnh», «ayearby and between NORTHERN STATES POWER » » COMPANY, a Minnesota Company,doing business as Xcel Energy, hereinafter called the "Company," and City of St. _Toseph, hereinafter called the "Customer," engaged in the business of Local Government . WITNESSETH: That the parties hereto, each in consideration of the agreements of the other, agree as follows: 1. KIND OF SERVICE: Company agrees to supply and Customer agrees to accept electric service in the form of « hase» Phase, «wire» Wire, Alternating Current at a nominal frequency of 60 Hertz and at a nominal voltage of «volts» ,for Customer's use solely for the operation of electric equipment now installed or to be installed by Customer on the property known as «pname» located at «addr». 2. ANNUAL MINIMUM DEMAND CHARGE: In consideration of the capacity commitment by Company and its investment in facilities to serve Customer, Customer agrees that if the net demand charge payments during any contract year hereunder, in accordance with the rate selected specified in Section 4 below, amount to less than the minimum demand charge specified in this rate schedule, the difference between such minimum demand charge and said net demand charge payment shall be included in the bill following the contract anniversary month and Customer agrees to pay same as a charge for service rendered. 3. TERM: This Agreement shall commence at 12:01 A.M. on January 1, 2009 and shall continue for a period ending at 12:01 A.M. 5 years from the commencement date and if not then terminated by at least six months prior written notice by either party for Tier 2 customers or by at least 36 months prior written notice by either party for Tier 1 customers, shall continue further until so terminated. 4. RATE: Customer agrees to qualify for and elects the rate schedule for «RATFSH», Tier «ratecodeopt». Customer agrees to pay Company's established rate schedule in effect from time to time in this locality for such Service, the established rate schedule now in effect being the one attached hereto. Effective with the term commencement date, the rate code is: «ratecd» .However, the specific rate and rate code are subject to change following an annual evaluation of Performance Factor based on Customer's previous 12 months usage. This rate and rate code change does not require Customer authorization. 5. TERMS AND CONDITIONS: The service hereunder shall be supplied for Customer's use subject to the General Rules and Regulations of Company on file with the state regulatory commission as they now exist or may hereafter be changed. A copy of such rules and regulations is available from the Company. This agreement is also subject to Sections(s) «sectns» appearing under the heading "Additional Terms and Conditions" which are attached to this Agreement. Customer agrees to use electrical service only as herein stated and will not assign this Agreement except upon written consent of Company. 6. MINIlv1UM DEMAND CHARGE DIFFERENTIAL: Company agrees that during the term of this agreement, the minimum average annual demand charge differential will be the average annual differential between the firm demand and controllable demand rates resulting from application of the variable interruption credit determination of the currently effective rate schedule as of the date of this agreement and listed in Section 4 above. 7. MAXIMUM HOURS OF INTERRUPTION: Company agrees that the total intentional interruptions of controlled demand will not exceed 80 hours per calendar year for Tier 2 customers, 150 hours per year for Tier 1 customers, and 300 hours per year for Tier lEnergy-Controlled Service Rider customers. 8. CONTROL PERIOD NOTICE: Company will endeavor to give Customer one hour notice of commencement of control period. 9. EXPECTED MAXIMUM DEMANDS: For the term of this agreement, Customer's expected maximum annual adjusted demand is «emad» kW. The expected maximum annual demand less the predetermined demand level is the expected maximum controlled demand. The Customer's expected maximum summer season adjusted demand is «emssd» kW. 10. PREDETERMINED DEMAND LEVEL (PDL): Customer may elect either the standard or optional arrangement as specified below. Standard: Customer agrees to limit adjusted demand to « dl» kW during control periods. Optional: Customer agrees to reduce adjusted demand by «o dl» kW during control periods. Customer's PDL will be the monthly adjusted demand less the agreed to load reduction. Any customer with generating equipment which is operated in parallel with Company must comply with all requirements associated with Parallel Operations specified in the General Rules and Regulations of Company. The PDL may be revised within or after the trial period subject to approval by Company. If the revision of the PDL occurs WITHIN THE TRIAL PERIOD, the Customer pays the demand charge differential for the corresponding months of the contract in the trial period multiplied by the number of kilowatts (kW) the Customer increases the PDL. Charges for the failure to control to their PDL are forgiven. The Customer will be credited any paid penalties against the recalculated amount. If the revision of the PDL occurs AFTER THE TRIAL PERIOD, the same calculation is made for the most recent months up to but not to exceed 18. In this case, however, the Customer is responsible for the greater of the following: (a) the amount determined by multiplying the demand charge differential by the PDL increase, as described above, or (b) the total amount of any penalties paid/owed for failure to control load to the previous PDL. 11. TRIAL PERIOD AND CANCELLATION CHARGE: Company agrees that the first twelve months of this agreement will be a trial period. Customer must notify Company in writing to terminate this agreement during the trial period. If Customer terminates this agreement during the trial period, Customer's Peak-Controlled Tiered Service or Peak-Controlled Tiered Time of Day Service bills will be recalculated using the corresponding firm rate (General Service or General Time of Day Service). Customer will be charged the difference between the recalculated amount and the amount charged under the corresponding Peak-Controlled rate. Also, Customer will receive a refund for any additional charges which were assessed during the trial period due to Customer failure to control load. A trial period for Peak-Controlled Tiered Service or Peak- Controlled Tiered Time of Day Service will not be available to any Customer account that has previously received either service, or the closed Peak-Controlled or Energy-Controlled Services. Customer will pay a cancellation charge after the twelve month trial period if Customer terminates this agreement and elects to receive service from NSP on anon-interruptible basis or this agreement is terminated as a result of any default of Customer. Customers no longer receiving service from NSP upon termination of agreement will not be assessed the cancellation charge. The cancellation charge will be the difference between the billing amounts described above, for the most recent 18 months for Tier 2 or 36 months for Tier 1 of Peak-Controlled Tiered Service or Peak-Controlled Tiered Time of Day Service. Customer will not receive a refund for any additional charges which were assessed during this 18 or 36 month period due to Customer failure to control load. Additionally, if at any time this agreement is terminated in any above described manner, Customer will be charged all installation and removal costs for special equipment and facilities provided by Company for Peak-Controlled Tiered Service or Peak-Controlled Tiered Time of Day Service. 12. FAILURE TO CONTROL: If in any month Customer fails to control load to predetermined demand level when requested by Company, the additional charge specified in the Rules for Application of Peak-Controlled Tiered Services and Peak- Controlled Services (Closed) shall be applied to the amount by which Customer's maximum adjusted demand during any control period exceeds predetermined demand. If Customer incurs three failures to control load to predetermined demand level when requested by Company, the Company reserves the right to renegotiate the predetermined demand level or remove Customer from Peak-Controlled Tiered or Peak-Controlled Tiered Time of Day Service. In a case where Customer is removed from Peak-Controlled Tiered or Peak-Controlled Tiered Time of Day Service, Customer will be subject to a cancellation charge specified in Customer's Electric Service Agreement. 13. GENERATING CUSTOMER CHARGE: Customer choosing the Optional Predetermined Demand Level agrees to pay Company $ «amms» per month for additional metering and billing expenses related to the use of Customer-operated generating equipment to reduce adjusted demand during control periods, as described in the Rules for Application of Peak-Controlled Tiered Services and Peak-Controlled Services (Closed). NORTHERN STATES POWER COMPANY CUSTOMER By: By: Title: Title: Date: Date: Xcel Energy Minnesota Peak Controlled Rate Comparison Saint Joseph City of 29771 Frontage Rd St. Joseph MN 56374 Projected* Annual Savings: Estimated Pre-determined Level: Tier and Level: 2A Peak Control Savings $700.00 $soo.oo $500.00 $400.00 $300.00 $200.00 $100.00 $0.00 lan $ 3,636 0 kW 15225 $147 50 $16310 } $278Y15~ $612 09 5527 45 ~ $495971 $553.90 $194'30 $180 65 $1D78 Account Number: 8280760 Premise Number: 304034786 Meter Number: 2639250 Prepared by: ' Note: Projections based on historical data. Julie Woolford Savings are based on demands being at or below pre-determined level during control days. October 6, 2008 Penalties will incur if Pre-determined level is not met during control days. Phone: 800.481.4700 Availability is restricted to customers with a minimum controllable demand of 50 kW. Fax: 800.311.0050 Cust Name Service Address CM. State Accountp Premise # Meter # Rep Name PDL Tier antl Level (16, 1C, 2A, 26, 2C( Rates effective 2-01-07 Fvm Demantl Chg -Summer Controllable Demand Chg -Summer 2A Fum Demantl Chg ~ Wnter Comrolla Dle Demand Chg ~ Wmler 2A DiBerence in Customer Charge (A1d va A2J = 529, A15 vs A20 = 5251 Billed Demand Jan gp Fe0 g6 Mai 90 Apr 98 Mav 157 June 127 July 106 Aug 9g Sept 110 Oct 111 Nov 107 Dec 106 Minnesota Peak Controlled Rate Comparison Selnl Joseyn uty m 29771 Frontage Rd Si Joseph MN 56374 6280760 304034786 2639250 Julie Wool(ord 0 kW 2A $10.15 $4 86 $6 81 $4.86 f 28 00 Controllable' Savings PDL Demantl per KW 0 90 51 95 0 95 $195 0 90 $195 0 96 $195 0 157 $1 95 0 121 S5 2B 0 105 ES 29 0 BB SS 2B 0 110 E5 29 0 114 $1 95 0 107 $1.95 0 106 E1 95 Controllable Difference Total Demantl Savings i n Basrc Chg Savings 517550 E2800 $147.50 E185.25 $28 DD $157.25 E17550 52800 $147.50 E19110 $280D $163.10 E306 15 E28 W $276.15 $640 O9 E28 00 $612 DB 5555 45 E28 00 E527.45 E523 71 E28 00 $495.71 E581 e0 E28 00 5553.90 $222 30 $28 00 $194.30 $206 65 $28 00 $180.65 $206 70 E28.00 $178.70 83.972 30 $ 336.00 $3,636.30 Estimated Annual Savings 53,636.30 Controllable Controllable Demand Chp Demand Chp 'MUSl Se ade rocmudamm~mem or 5o kw Tier Summer Winter 1 B 3.92 3.92 iC 3.42 342 2A 4.66 4 8fi 2B 4.52 4 51 2C 4.12 4 12