Around February 2012 or shortly thereafter, customers of the Grand Marais Public Utilities Commission (PUC) are likely to become very smart about when they turn on their dishwashers, washing machines, and dryers. The source of Grand Marais’ power, Southern Minnesota Municipal Power Agency (SMMPA), will be charging higher rates for usage during peak periods. They will even have “super peak” periods during which the rates will be even higher.
Electric Superintendent Mike Taylor and Billing Clerk Jan Smith recently traveled to North Branch for a workshop on the new rate structures and reported to the PUC board Wednesday, July 21, 2010 on what they learned. On-peak rates are $ .054 per kilowatt hour (kWh) but would be likely to increase to $ .057/ kWh in the winter and $ .065/ kWh in the summer. Off-peak rates now cost $ .04 per kilowatt hour (kWh). Theywould be likely to decrease to $ .036/ kWh in the winter and $ .029/ kWh in the summer.
SMMPA currently has no super on-peak rates, but they would be an estimated $ .080/ kWh in the winter and $ .101 in the summer.
This is actually good news for some, particularly for residential customers, because overall, Grand Marais’ costs would go down by an estimated 1%. The decrease would be due to the fact that SMMPA’s highest customer usage is in the summer, while Grand Marais’ highest use is in the winter. It appears the cold by Lake Superior is an advantage in this case, with little need for air conditioning.
It won’t be easy on local businesses, however. Many businesses, such as gas stations and grocery stores, must use their appliances either all the time or when customer demand is high. Thenew rate structure could be “a pretty significant cost” to those businesses, said Taylor. Special meters can be installed that help a customer determine good times to turn off their appliances.
Peak rates would be 10 a.m. to 9 p.m. in May, September, and October and 10 am. to noon and 6 p.m. to 9 p.m. June through August. Theywould be 11 a.m. to 5 p.m. November through April. Super peak rates would be noon to 6 p.m. June through August. They would be 6 a.m. to 11 a.m. and 5 p.m. to 9 p.m. November through April.
Another possibility on the horizon is climate change legislation that would make people pay for the amount of carbon dioxide their activities discharge into the atmosphere. SMMPA gave the PUC an estimate of the difference such legislation could make. If the cost were $50 for the release of a ton of carbon dioxide, SMMPA estimated the amount the PUC paid in July, $109,366.11, would increase by $77,812.45, or 71%.
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