Electric Rates

 Legal Notice - Current Rate Changes

PERU MUNICIPAL ELECTRIC UTILITY
Rate SGS – Small Generation Service

AVAILABILITY
This rate is available to any customer connected to the municipally owned electric system of the City of Peru (Utility), that owns and operates an eligible solar, wind, biomass, hydroelectric, or other renewable generation source. In order to be entitled to this rate, however, the Customer shall enter into a contract with the Utility before operation of any generating equipment electrically connected to the Utility’s electrical system.

This rate is provided upon request and on a first-come, first-served basis, and is available only to residential (Rate RS-1) and general service (Rate GSA-1) Customers. The name plate rating of Customer’s generator must not exceed 10 kW. Total participation under this tariff is limited to a total nameplate rating of all Customers’ generators to one-tenth percent (0.1%) of the Utility’s most recent summer peak load.

This rate may be discontinued or be subject to change at any time upon approval of the Peru Utilities Service Board and the City of Peru Common Council. 
 
BILLING
The Utility shall measure the amount of electricity delivered by the Utility to the Customer and the amount of electricity generated by the Customer and delivered to the Utility during the billing period, in accordance with normal metering practices. The kWh delivered by the Utility to the Customer shall be billed in accordance with the standard tariff that would apply if the Customer did not participate in generation.
The kWh generated by the Customer and delivered to Utility shall be credited against the Customer’s next bill. Said credit shall be equal to the kWh delivered by the Customer to the Utility multiplied times the effective energy component charge of the Utility’s wholesale power bill for the month in which said kWh was delivered to the Utility by the Customer.

METERING
If possible, the Utility will install a standard meter, which is capable of measuring electricity in both directions. If Utility determines new metering equipment is necessary, the Utility will install metering capable of measuring electricity in both directions at the Customer’s expense. Additionally, the Utility reserves the right to install, at its own expense, a meter to measure the output of the generation system.

TERMS AND CONDITIONS
In order to be eligible for this rate, the Customer’s generator must meet the following requirements:

1. All kWh must be generated from the output of photovoltaic, wind, or low-head hydro electrical generation sources or through the combustion of refuse, a renewable or recovered resource. 
   
2. The generation equipment must be located on the Customer’s premises; 
   
3. The generator must operate in parallel with the Utility’s distribution facilities; 
   
4. The Customer’s generation must be intended primarily to offset part or all of the Customer’s requirements for electricity; 
   
5. The nameplate rating of Customer’s generator must not exceed 10 kW. 
   

Customer shall maintain homeowners, commercial, or other insurance providing coverage in the amount of at least one-hundred thousand dollars ($100,000) for the liability of the insured against loss arising out of the use of generation equipment.

Utility and Customer shall indemnify and hold the other party harmless from and against all claims, liability, damages, and expenses, including attorney’s fees, based on any injury to any person, including loss of life or damage to any property, including loss of use thereof, arising out of, resulting from, or connected with an act or omission by such other party, its employees, agents, representatives, successors, or assigns in the construction, ownership, operation, or maintenance of such party’s facilities used in generation.

INTERCONNECTON
For generator systems eligible for this rate, the Utility’s technical requirements consist of:

1. IEEE 1547-2003, “IEEE Standard for Interconnection Distributed Resources with Electric Power Systems” and as it might be revised from time to time (IEEE 1547).
   
2. Current version of ANSI/NFPA 70, “National Electrical Code” (NEC).
   
3. Any other applicable local building codes. 
   

Inverter based systems listed by Underwriters Laboratories (UL) to UL Standard 1741, published May 7, 1999, as revised January 17, 2001 and as it might be revised from time to time (UL 1741), are accepted by the Utility as meeting the technical requirements of IEEE 1547 tested by UL 1741.

Customer shall make an application for Interconnection Service and execute an Interconnection Agreement acceptable to the Utility.

The Customer shall install a disconnect switch to isolate the generator system from the Utility’s system. This disconnect must be visible from the utility meter, accessible at all times, and capable of being locked in the open position.

The Utility may isolate the generator system if the Utility believes that the continued interconnection with the generator system may create or contribute to a system emergency.

The Customer shall install, operate, and maintain the generation system in accordance with the manufacturer’s suggested practices for safe, efficient, and reliable operation in parallel to the Utility’s system.

The Customer shall operate the generation system in such a manner as not to cause undue fluctuations in voltage, intermittent load characteristics or otherwise interfere with the operation of the Utility’s electric system.

The Utility may perform on-site inspections to verify the proper installation and continuing safe operation of the generation system.

The Customer shall be responsible for all costs associated with improvements to the Utility’s system that are required to maintain safe and reliable operation of the Utility’s system after the installation of the generator system.

Conformance with these requirements does not convey any liability to the Utility for damages or injuries arising from the installation or operation of the generator system.

ORDINANCE NO. 12, 2011
AN ORDINANCE AMENDING THE ELECTRIC RATE ORDINANCE FOR  THE PURPOSE OF PROMOTING ECONOMIC DEVELOPMENT

WHEREAS, Peru Utilities wishes to add an economic development aid to its rate structure for the purpose of providing incentive for existing industry to expand in Peru and Miami County and to attract new industry with favorable electric rates; and

WHEREAS, Peru Utilities has employed a reputable and experienced consultant to perform a rate study to determine the feasibility of providing such an incentive; and 

WHEREAS, the rate study provides a means of providing additional electrical service to certain new or expanding industries while at the same time recovering incremental costs incurred by Peru Utilities; and

WHEREAS, a public hearing was advertised pursuant to I.C. § 5-3-1, and was held at p.m. on , 2011, in the City Council Chamber of Peru City Hall. 

THEREFORE BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF PERU, INDIANA, AS FOLLOWS:

The Electric Rate Ordinance for Peru Utilities is hereby amended by adding the following language:
Rider ED For Rate Schedule PS
(Power Service) Applicability

This Rider is available as an economic development incentive to any existing or new customer of the Peru Municipal Electric Utility that:

1. Meets the criteria for, and receives service under, Rate Schedule PS, unless superseded by a requirement of this Rider.
   
2. Has a new or additional load of at least 300 kW and not more than 1,500 kW above the initial base load each month the Rider is applied. For any existing customer, the 300 kW would be in addition to the customer's current load.
   
3. Enters into an agreement for economic development satisfactory to the City of Peru or Peru Utilities. Unless otherwise specified in the economic development agreement, this Rider shall apply for a term of no more than three (3) years.
   

Rider ED is not applicable if Peru Municipal Electric Utility must expend its own funds for capital improvements or additional expenses that would be necessary to provide service for the new load. If the customer provides its own funding for capital improvements or additional expenses such that Peru Municipal Electric Utility is not required to do so then Rider ED may be applicable if all other conditions of Rider ED are met.

Rate 
 
Under Rider ED, the determination of the monthly charge for purposes of Rate Schedule PS is as follows:

1. Customers qualifying for Rider ED will be billed monthly for their actual kilowatt hours used at the following rate (subject to the tracking factor described below):
   
   a. $0.06072 per kWh.b. This amount represents the average rate per kilowatt hour incurred by Peru Municipal Electric Utility for its power purchased from IMPA from May, 2010 through April, 2011.
   
   
2. The actual rate billed to customers will increase or decrease as appropriate on a monthly basis to reflect the difference in actual cost of purchased power from the Indiana Municipal Power Agency ("IMPA") and the rate as stated in 1. a., above. 
   

Terms and Conditions
The customer must contact Peru Municipal Electric Utility to initiate the application of the Rider for the three (3) year term of the Rider. The customer may request an effective date of the Rider, which is no later than twelve (12) months after the date of acceptance to the Rider.

For Rate Schedule PS (Power Service)

Applicability

This Coincident Peak Reduction Credit (the "Credit") is available to any existing customer of the Peru Municipal Electric Utility (the "Utility") that :

1. Meets the criteria for, and receives service under, Rate Schedule PS unless superseded by a requirement of this Rider. 
   
2. Has a minimum load of at least 1,000 kW 
   
3. Has the ability to adjust its operation to reduce the customer's impact on the monthly kW peak billed to the Utility from the Utility's wholesale electric service provider 
   
4. Enters into an agreement with Peru Utilities detailing the procedures and requirements associated with the changes to the customer's operations that will result in the peak reduction. 

Credit Operation and Calculation 
 
Under the Credit, the Utility will signal the customer identifying the hour the Utility estimates it will reach the system daily peak. The customer will then adjust operations in order to reduce the customer's contribution to the estimated peak daily demand of the Utility's electric system. The reduction in the daily peak will result in a reduction in the Utility's monthly wholesale purchased electricity bill. The customer's allocated portion of this reduction will be passed back to them in the form of a credit appearing on the customer's monthly bill. The monthly credit will be calculated as follows:
 
Customer's average peak for the three hours prior to the time when the Utility provided the signal to the customer to reduce electrical load.

Less: the customer's actual contribution to the Utility's billed monthly peak in kilowatts (kW) as metered by the Utility.

Equals the estimated Utility peak savings due to customer actions.

Times Utility wholesale electricity provider's demand base rates and any applicable adjustments or charges per kilowatt (kW)

Equals the credit to be applied to the customer's monthly electric billing.