Energy Costs and You

The end of the 2024 legislative session was chaotic. On the last day of the session, with time running out, DFL leadership put every unfinished priority provision into one bill. With less than an hour before the constitutional end of the session, the DFL majority revealed a 1,400-page bill to legislators. Using a procedural motion, the DFL majority was able to pass the bill in the House and Senate without debate.

The bill, HF5247, was originally the omnibus tax bill. However, it contained very few tax provisions following the last-minute revision. HF5247 contained language from nine other bills including an omnibus transportation, housing, and labor bill; an omnibus health and human services bill; an omnibus agriculture and energy bill; an omnibus higher education bill; an emergency services funding bill; penalty increases on gun straw purchases; and changes to the paid family medical leave law.

With the entire House of Representatives up for election, Speaker of the House Melissa Hortman (DFL-Brooklyn Park) said, “Tonight the House Democrats did what we needed to do to pass our agenda.”

“This has got to be one of the most disgusting ends to a session that I have seen in the 12 years I have been here,” said Sen. Bill Weber (R-Luverne). “The reality of it is, there have been a number of days that there could have been action taken, but never have I seen mismanagement of a legislative session that I have seen this year.”

What passed?
Several bills were passed by both bodies and will become law once Gov. Tim Walz (DFL) signs them.

Omnibus Agriculture and Energy bill (SF4942):

• SF4942 makes changes to energy policy, including the much talked about effort to reform the energy permitting process. Those reforms include: Replaces the current Minnesota Power Plant Siting Act (MN Stat. Chapter 216E) with the new “Minnesota Energy Infrastructure Permitting Act (MN Stat. Chapter 216I). This consolidates permitting requirements for energy facilities, currently found in multiple statutes and rules, into one chapter.
• Organizes the siting and routing processes into two categories: major review and standard review. The new law reduces the procedural steps and shortens the overall timing which should streamline the overall permitting process.
• Timelines are shortened for incumbent transmission owners to invoke the Right of First Refusal. Owners have 60 days to give notice to the Public Utilities Commission (PUC) and 12 months to file a certificate of need.
• Moves the Energy, Environmental Review, and Analysis staff from the Department of Commerce to the PUC. Effective January 1, 2025.

Additional changes:

• Makes changes to the Energy Conservation and Optimization (ECO) Act. Changes include allowing investor-owned utilities (IOUs) to receive a financial incentive for the promotion of electric vehicles and exempting from annual retail-sales kilowatt hours associated with data mining facilities located in a municipal utility service territory.
• Changes to the commercial property assessed clean energy (C-PACE) program. C-PACE projects will no longer need to be cost-effective to receive funding.
• Requires the biennial transmission plan to include the extent and cost of congestion on transmission lines and an analysis of Grid Enhancing Technologies (GETs) as a potential alternative to building new transmission.
• Requires Xcel Energy, Minnesota Power, Otter Tail Power and Great River Energy, based on the analysis of GETs in the transmission plan, to submit an implementation plan on GETs.
• Requires the PUC to initiate a docket prior to Sept. 1, 2024, to develop a process that enables owners of distributed energy facilities (solar and storage) to share the costs of necessary upgrades to public utility distribution lines for interconnection.
• Establishes a program within the Department of Commerce to provide financial incentives to local permitting authorities to deploy federally developed software (called Solar App+). Incentives range from $5,000 to $20,000.
• Additionally, several appropriations are made from the Xcel Energy Renewable Development Account.

Omnibus Environment bill (HF3911):

• Authorizes the Minnesota Pollution Control Agency (MPCA) to require parties who enter into a negotiated settlement to reimburse the MPCA for oversight costs (if the costs exceed $25,000).
• Creates a new food and food waste management hierarchy.
• Creates a critical minerals recovery advisory task force (which includes one representative from an electric utility).
• Requires rulemaking for post-closure care of solid-waste disposal facilities.
• Requires the Department of Natural Resources to amend rules and designate the rusty patch bumblebee as an endangered species.
• Establishes an extended producer responsibility for packaging waste.

Omnibus Transportation, Labor and Housing bill (HF5242):

• Creates an infrastructure advisory council. Membership includes one representative from a public utility, one representative from the Minnesota Rural Electric Association and one representative from the Minnesota Municipal Utility Association.
• Allows for a transmission line to be located in the right-of-way along an interstate highway. However, if a transmission line is located in an interstate right-of-way and the Commissioner of the Minnesota Department of Transportation requires the line to be relocated, the utility must pay for relocation costs.

Mega Omnibus bill (HF5247):

HF5247 contains a multitude of different bills. HF5247, which started out as the Omnibus Tax bill, was the combined 1,400-page bill that passed both bodies in the last minutes of the session. Some changes include:

• Amends the earned sick and safe time (ESST) law to include remedies available as enforcement against an employer who violates the ESST law; allows an employee to use ESST for funeral or bereavement; amends the definition of “base rate.”
• Various changes were made to the paid family medical leave law.

Omnibus Transportation Policy bill (HF3436):

• HF3436 makes changes to the excavation laws under Minnesota Statute 216D.

Omnibus Labor Policy bill (SF3852):

SF3852 makes various changes to employment provisions. Changes include:

• Requires an employer with 30 or more employees to include the starting salary range and general description of benefits on any job posting.
• Allows for “oral fluid testing” as an option for testing for alcohol, drugs and cannabis.
• Adds earnings statements to the list of records an employer must retain for three years.
• Eliminates the distinction between large and small employers for minimum wage purposes and gives the Commissioner of the Department of Labor and Industry the authority to adjust the minimum wage.

The 2023 legislative session, which began in January and concluded on May 22, was one of the most consequential in history for Minnesota’s 1.7 million cooperative members. Record investments, key policy changes, and a landmark 100 percent carbon-free by 2040 mandate all made this legislative session one with big long-term impacts on everyone using electricity in the state.

100% Carbon-Free by 2040
The first and most impactful bill for electric cooperatives and their member-owners was the historic 100% Carbon-Free by 2040 bill, which was signed into law in early February. The legislation, passed in record time, is widely regarded as the most significant energy policy ever passed in Minnesota and mandates all electricity sold in the state come from carbon-free sources by the year 2040.

Minnesota’s electric cooperatives are leaders in navigating the clean energy transition while keeping electricity reliable and affordable. However, this new law does present significant challenges. As a result, MREA worked with lawmakers to add some common-sense amendments to help protect affordability and reliability. Nonetheless, a lot of investment, innovation, and ingenuity will be necessary to
avoid cost increases and potential service disruptions, while meeting the mandate.

State Competitiveness Fund
Investments in Minnesota’s electric grid are more crucial than ever. As a result, lawmakers put $190 million into a newly created State Competitiveness Fund which will be used to attract hundreds of millions of dollars for investments in Minnesota’s energy infrastructure. Cooperatives across the state will be using these funds, including an additional $5.3 million specifically for member-owned utilities (ccoperatives), for projects to improve affordability and reliability and aid in the energy transition.

Electrification Rebates and Grants
The state of Minnesota offers a rebate of up to $2,500 for a new electric vehicle with a sale price below $55,000 or up to $600 for a used vehicle under $25,000. The rebate is open to individuals, businesses, nonprofits, and governments; those who have already
received an EV rebate or tax credit from Minnesota are not eligible.

Those who would like to purchase a highly efficient heat pump to heat and cool their home could receive rebates of up to $4,000. The legislature also made grant money available for solar on schools, electric bikes, electric school buses, pre-weatherization work, and more.

By Ryan Hentges
former MVEC CEO

As a not-for-profit cooperative, we understand that your monthly electric bill is impacted by the decisions we make at the cooperative, and we are focused on making wise investments with the resources entrusted to us. Since 2016, we’ve been able to make prudent investments in our cooperative and electrical grid, without needing to increase the general service rate you pay for electricity.

As you can likely imagine, everything we buy to run the cooperative, from poles and wire to transformers and vehicles, has increased in cost since 2016. With costs continuing to rise on most of our equipment, we can no longer responsibly balance the need for safe and reliable electric service without increasing your monthly electric bill.

In the announcement to the left, MVEC’s residential Basic Monthly Service Charge is increasing on March 1 from $10 to $15. This is a fixed charge paid by all members and is not based on your household usage; it covers the cost to maintain MVEC’s system — from poles and wire to equipment and administrative costs. As a not-for-profit utility, the co-op sells the electricity you use at cost. The last time the Basic Monthly Service Charge changed was in 2015.

MVEC’s Board of Directors approved the increase following an extensive cost-of-service study conducted by an outside consulting firm. This study ensured all rates are fair and equitable between member-owners. It is a total review of all costs and allocates those costs to determine revenue requirements by each member class of rates. When determining if rate changes are needed, much thought and consideration are given.

We understand there is no suitable time for an increase. After seven years of keeping member rates stable, the increase is needed to cover cooperative costs and ensure reliable power to the membership.

MVEC rates remain very competitive, as shown in the graph, with neighboring utilities who are all reviewing their costs as well.

Another component of your bill, the Wholesale Power Costs Adjustment (WPCA), will continue to vary monthly for the foreseeable future. As the price of natural gas has increased substantially in 2022, the price of the energy MVEC purchases on your behalf has increased. This is reflected in the WPCA, which is a direct pass-thru from our power providers.  Our hope is as the price of natural gas declines so will the price of energy we purchase on your behalf, and the WPCA will then decline.

MVEC offers member programs and services to help reduce bills and save energy. Some are no cost, low cost, have reduced rates, allow you to pay as you go, or offer a steadier and more predictable monthly bill. Check out the bill insert this month, visit www.mvec.net or call us at 952.492.2313 to learn more.

By Ryan Hentges
former MVEC CEO

While virtually all aspects of today’s cost of living continue to rise, we strive to avoid routine rate adjustments. In fact, the last time MVEC electric base rates were modified was in 2016. In a world of rising costs for nearly all consumer products and commodities, MVEC continues to work hard to manage costs effectively.

MVEC is a not-for-profit utility. It is part of our mission statement: to safely provide reliable energy at cost. In order to accomplish that, staff sets annual work plans that enhance member service while making financially­-responsible decisions and working efficiently to meet them.

Revenue derived from the electric rates collected from our membership funds the operation of the electric cooperative. It is the responsibility of MVEC’s Board of Directors and the co­-op’s staff to examine rates routinely. This ensures rates are justifiable and reasonable for all classes of members (residential and commercial). It also allows MVEC to fulfill its lender obligations and our commitment to you, the members, to deliver safe and reliable service at cost.

If MVEC rates collect too much it is given back to the members. Bill credits have been issued to the membership in 2018, 2019, and 2020 totaling $1 million. Likewise, if our electric rates do not cover cooperative expenses, we need to adjust. MVEC rates compare favorably to local electric utilities. All are seeing upward cost pressures with natural gas availability and the cost of utility materials.

How are electric rates established? MVEC has hired a third­-party rate consultant, Power Systems Engineering, to conduct a Cost­-of­Service Study. Existing data is used to determine what revenue is required to operate the cooperative in the future, and costs are assigned to each class of service. Electric rates are then designed, from those cost allocations, to collect revenue fairly from each rate schedule in meeting obligations and the funding for future goals as identified by the Board of Directors.

As MVEC reviews costs, power supply is the largest expense, which covers costs to purchase the power that is generated and transmitted to MVEC substations by Great River Energy, Basin Electric Power Cooperative, and Alliant Energy. Wholesale power currently accounts for 70 percent of MVEC’s annual budget.

The remaining 30 percent of MVEC’s budget is local costs for delivering power from MVEC substations to your home or business. Many of these items are currently affected by inflation, as well as supply and demand. This includes poles, wire, trucks, office and warehouse facilities, substations, maintenance and repair of lines, repayment of loans, and employee costs.

When will the results of the Cost-­of­-Service Study be announced? Once the study and corresponding rate designs are completed, it is reviewed by the Board of Directors for final approval. Your Board takes the responsibility of setting fair rates seriously. After all, they are members of the cooperative and pay the same rates as all members – like you.

By Ryan Hentges
former MVEC CEO

This summer, we’ve talked about the ups and downs of the energy market. Fortunately, the regional electric system weathered the summer’s heat just fine for a variety of reasons. MVEC members helped through your voluntary participation in load control Energy Wise and generator programs and member-driven conservation efforts. Prices, however, continue to rise for virtually all goods and services, including electricity. We see the impacts while shopping, at the gas pump, and when paying bills.

Electric bill impact
Your MVEC electric bill varies each month and is impacted by the number of days in the billing cycle, weather, appliance use, household size, and more. Several years ago, MVEC separated costs on your bill to provide additional clarity to the underlying items which impact your monthly bill. The Cost to Generate (wholesale power) is the co-op’s largest cost and makes up nearly 70 percent of MVEC’s budget. It includes the Wholesale Power Cost Adjustment (WPCA). In August, I mentioned a slight WPCA increase that averaged $3. This is a pass-through from power providers and covers variances in fuel and other commodity prices. Sometimes it is a bill addition, or it can be a reduction too.

The Cost to Deliver (MVEC) covers delivery, inventory, facilities, and our workforce. This also includes the $15 basic monthly service charge. Think of it like a membership fee. It covers the cost of maintaining power lines, transformers, and substations to make sure electricity is always available to you whether you use it or not. Our basic service charge is competitive with other local utilities.

MVEC members use the most electricity in the summer largely due to air conditioning load. This results in higher costs in the summer months (June – September when rates = 12.5¢/kWh) because energy demand levels are higher than in the winter months (October – May rates which = 11.7¢/kWh). Energy Wise programs (see below) can reduce your monthly bill. If you’re not sure whether you participate in Energy Wise, check the front of your electric bill. It will either show your savings or say you’re not participating, as shown at right.

 

By Ryan Hentges
former MVEC CEO

Summer is here, and June quickly ushered in extremely hot temperatures, bringing attention to conservation efforts, grid reliability challenges, and higher electric usage due to cooling systems running nonstop to keep homes and businesses comfortable. Many things are happening in the energy industry. Below is a quick cooperative update.

Thanks for your energy conservation efforts, it helps you and the co-op save money.
The most notable day of heat in June was on the 20th, topping off at 101 degrees. We asked members to conserve electricity and shift usage after the energy rush hour of 3-9 p.m. And that’s exactly what many of you did.

MISO and MVEC systems performed well in June.
In June, there was an adequate generation in the Midcontinent Independent System Operation (MISO) market, our region’s energy traffic controller. MISO monitors the electric grid system’s performance and reliability.

When this occurs, MVEC schedules various voluntary, member load control programs called money-saving Energy Wise or generator programs. A big thanks to members participating. Not only do you receive a lower electric rate or a monthly discount, but it also helps MVEC lessen high-cost peaks in energy demand and helps to maintain balance on the power grid.

Summer heat impacts your electric bill
Needless to say, despite conservation efforts, energy and fuel prices are impacting the co-op’s wholesale power costs – due to world events beyond our control. On your July electric bill, residential members saw a slight increase in the Wholesale Power Cost Adjustment (WPCA), averaging around $3. Because the WPCA is expected to continue to increase through 2022 into 2023, your Board of Directors voted to spread those costs over 12 months versus the usual three months to lessen the monthly impact.

The WPCA is an adjustment of actual costs versus what was forecast. It isn’t a new concept and has been around since 2000. In fact, we have given credits on 27 of the past 46 months on your electric bill. When the actual cost of power is below the forecast, the WPCA is a credit. If the actual cost is above the forecast, the WPCA is an addition.

Cost-of-Service rate study
Due to rising WPCA and market conditions, MVEC is conducting a rate study this fall. When there is a rapid change in the energy markets, reviewing the rate structure is important. MVEC will make sure the co-op has financial stability and will balance how to best deal with economic changes that might impact the membership today and into the future. More details will be shared in upcoming newsletters.
Service area transition with Shakopee Public Utilities

MVEC and Shakopee Public Utilities (SPU) made a joint request to the Minnesota Public Utilities Commission in June to approve a plan for transferring customers from one utility to the other in light of the city of Shakopee’s annexation of Jackson Township.

Both utilities mutually agreed on the service area boundaries impacted. Homeowners and businesses in Jackson Township, currently served by MVEC, will be welcomed as customers of SPU. Likewise, current SPU customers with Prior Lake addresses south of County Road 42 will become members of MVEC.

The switchover date with Shakopee is pending; however, we anticipate a completed transition by the end of 2022. It’s a win-win plan for both utilities.

So as summer winds down, know that your co-op is working hard to be your trusted energy partner, safely providing reliable energy – at cost.

By Ryan Hentges
former MVEC CEO

In May, the North American Electric Reliability Corporation (NERC) issued its 2022 Summer Reliability Assessment. In it, NERC — the U.S. authority on electric reliability — warned several parts of the country are at risk of energy shortfalls this summer due to predicted above‐normal temperatures and drought conditions over the western half of the continent.

The announcement followed similar comments from the Midcontinent Independent System Operator (MISO).

I talked about MISO last month — MISO manages the power grid for 42 million people in the U.S. and Canada, including Minnesota. Think of MISO as the air traffic controller of the region’s grid. Using sophisticated technology and procedures, MISO has a wide-area view and control of the grid that goes beyond any one utility.

Although MISO projects the Midwest will have sufficient energy for the summer, it emphasized additional measures may be necessary to maintain reliable service during periods of peak demand. This typically occurs on hot and humid days when members are using more electricity than normal.

NERC indicated the north and central areas of MISO are in a “high risk” category due to generator retirements and increased demand. MVEC’s service area is considered “high risk.”

In emergency situations, MISO calls on additional power supply resources, imports energy from other regions, and performs voluntary load reductions to manage the electric system. Temporary controlled manual load sheds, or periodic power outages (rolling blackouts), are used as a last resort to keep the system in balance. These situations are rare and would occur only after other options are exhausted. If temporary controlled load sheds are needed, procedures are in place to act immediately when directed by MISO to shed load. Load shed protocols and processes are defined and drilled routinely, so when these events happen, our wholesale providers are ready.

Could MVEC be affected? The short and honest answer is yes. MVEC has contracted for enough generation to meet our members’ needs. However, power to our substations may be interrupted by MISO. Many factors will go into the decision by MISO to direct rolling blackouts. Our wholesale power providers generate sufficient supply, but ultimately MISO will take the needs of the regional electric grid into consideration when determining whether to call for emergency rolling blackouts.

We will do our best to communicate with you in advance if MISO calls for an event. Communications will be made on www.mvec.net, Facebook, Twitter, and/or email notifications.

What can you do? Being energy conscious is important. There are lots of ways to save and conserve energy. Our website www.mvec.net is a great resource for conservation efforts. Find the latest news and ways to be prepared.

I encourage you to check it out. As your electric provider, we will do our best to keep the lights on. We are all in this together.

By Ryan Hentges
former MVEC CEO

The electric grid is an extensive network of power plants, power lines, substations, and technologies owned and operated by different utilities, all striving to achieve the same goal: deliver service reliably and keep the lights on with affordable electricity to power daily lives.

A combination of energy prices and supply chain issues are contributing factors when considering electricity costs. As a member-owned cooperative, MVEC is focusing on keeping member rates stable (legacy residential rates have not changed in the past six years); responsible use of the cooperative’s rate stabilization reserve fund (which helps to minimize a member cost increase); and the impacts rising energy costs can have on member bills.

We carefully watch energy market commodities and monitor how this impacts business operations. MVEC has a diverse power supply portfolio and purchases electricity from three wholesale power providers: Great River Energy, Basin Electric Power Cooperative, and Alliant Energy. For every dollar you pay on your electric bill, 70¢ goes toward paying for wholesale power costs – called “cost to generate” on your bill.

So where does wholesale power come from? The Midcontinent Independent System Operator (MISO) operates a power grid serving 15 central U.S. states and Manitoba, Canada. MISO’s wholesale market is where electric energy is bought and sold, and transmission is regulated. MISO helps the region’s electric providers deliver reliable, affordable energy in three ways:

Managing the grid
Think of MISO as the air traffic controller of our region’s grid. Using sophisticated technology, processes, and procedures, MISO has a wide‐area view and control of the grid that goes beyond any one utility.
This helps utilities maintain reliability regionally and prevents emergency operating situations in the future or in real‐time. Forty-two million people depend on MISO to generate and transmit the right amount of electricity every minute of every day.

Managing energy markets
In decades past, coordinating power flows and transactions was a manual process requiring many agreements between utilities. Today, all generation production is sold into the MISO market and cooperatives buy back what they need to serve members. MISO’s energy market helps keep electricity affordable by using the lowest cost generation available first to supply members and minimize flow constraints across the grid. MISO provides transparency with energy market price changes occurring every five minutes, all seen in real-time.

Rising prices in energy markets
The price of electricity in the MISO energy market has increased dramatically over the past several months due to many factors, but primarily natural gas price increases. Although MVEC’s margin reserves have been able to offset much of those rising costs, at some point, MVEC may need to pass those costs on to our members through the wholesale power cost adjustment on your bill, shown as part of the “cost to generate” line. This represents a pass-through from our power providers to cover variances in fuel and other costs that vary with commodity prices. We continue to find ways to keep costs down, but we also want you to be aware of potential future impacts.

On another note, supply chain challenges are being felt, and we are not the only ones experiencing this. For MVEC, supply delays mean longer wait times for materials, and costs are higher for essential supplies needed to operate our system. This could possibly linger to 2023 or beyond and affects new construction and service installations, as well as infrastructure planning into the future.

We are currently in a volatile and dynamic economic environment, which impacts the energy sector. As a non-profit, member-owned utility, we’ll continue to work hard to manage the impact this volatility has on your electric bill while continuing to provide the service you expect.

MVEC is a summer-peaking system, which means the co-op needs to purchase more electricity in the summer months, and your cooling system and other heavy appliance use during peak hours impact this need. See ways to troubleshoot your usage and costs. It is also important to understand how your usage is represented on your bill and learn the different electric rates your co-op offers.

There are two cost components on your electric bill:

Cost to Generate (wholesale power): This is MVEC’s cost to purchase the electricity you use. Wholesale PowerCost Adjustment (WPCA) is a pass-through from our power providers, covering variances in fuel and other costs that vary with commodity prices.

• This accounts for 70% of MVEC’s costs.
• The rate on your main meter includes a WPCA on the amount of electricity used in kilowatt-hours (kWh).

Cost to Deliver (MVEC expenses): This is MVEC’s cost to deliver electricity to your home or business.

• This accounts for 30% of MVEC’s costs.

Wholesale Power Cost Adjustment (WPCA) – legacy members

July WPCA Impacts: Energy and fuel prices, affected by world events outside of our control, are having an impact on the co-op’s wholesale power costs. On your July electric bill, residential members will see an increase in the WPCA, averaging around $3. It is forecasted to continue to increase through 2022 into 2023.

Why is there a WPCA on your electric bill?

• WPCA represents the difference in costs to generate electricity from our wholesale power provider from what was projected at the beginning of each calendar year and would normally be covered in our rate structure.
• The WPCA absorbs the volatility of generation fuel (natural gas, oil, coal) costs and aims to spread it over the projected kilowatt-hour sales for the year. This helps mitigate member impact by leveling out price spikes.

MVEC recently changed the WPCA calculation. What does this mean going forward?

• Given the rising costs, in May 2022 the Board of Directors voted to change the monthly WPCA to be applied over a twelve-month period versus a three-month period. What benefit does this offer? Moving from three months to twelve months allows usage costs to be divided over a larger period of time and can make a lesser impact on your monthly electric bill.
• MVEC rates are largely based on annual forecasts of what the cooperative expects to pay for wholesale power. This variable rate rider will allow us to true up actual wholesale power cost variances from previously forecasted amounts to better protect our overall financial stability.
• When the actual cost of power is below the forecast, the WPCA is a credit on your electric bill. If the actual cost is above the forecast, the WPCA is an addition to your electric bill.

History of WPCA for legacy members

2019	WPCA credit: 8 months Jan, Feb, May, June, July, Aug, Sept, Oct	WPCA addition: 4 months Mar, Apr, Nov, Dec
2020	WPCA credit: 9 months Jan, May-Dec	WPCA addition: 3 months Feb-Apr
2021	WPCA credit: 9 months Jan, May-Dec	WPCA addition: 3 months Feb-Apr
2022	WPCA credit: 1 month Jan	WPCA addition: 6 months Feb-July

Is a WPCA a rate increase? While it could be argued that MVEC’s rates are not going up, the reality is that any WPCA that makes a member spend more money on electricity looks exactly like a rate increase. A WPCA can add costs or reduce them, dependent upon the price of fuels to generate power.

Is this happening to everyone? Many utilities in Minnesota are being impacted. Even with the WPCA in place, you are paying very competitive rates in the national marketplace. The same generation fuel cost increases are impacting electric customers nationwide. Some power providers have announced rate increases to cope with rising costs. MVEC is currently discussing our next steps.

Why doesn’t MVEC pay for these increases?
MVEC is a not-for-profit electric cooperative owned by the members it serves. There are no other sources of revenue to pay bills incurred to generate electricity, except for actual costs from the members who use the electricity.

Why give members a credit and then later increase the WPCA? Why not just keep the credit and use that to cover increasing costs? We believe it’s important to charge members the actual costs of providing electricity. Therefore, if wholesale prices drop, members should enjoy a reduction in their rates as soon as is practical.

For other cost-saving solutions, see the tab below called “Resources for saving energy and protecting the grid”

• Energy Usage Information SmartHub is a secure online portal offering usage transparency that can help members make energy decisions based on their home or business’s specific usage date
• Energy Wise Programs Over 40% of MVEC members enjoy the benefits of reduced rates, monthly savings, or credits while participating in these conservation programs: electric water heating, space heating, electric vehicles, and cooling options, including an innovative Wi-Fi Thermostat program
• MyEnergyXpert A free do-it-yourself energy audit of your home with expert recommendations.
• Rebate Offers Get cash back for energy-efficient appliances and HVAC purchases
• GreenChoice Options While the electricity delivered to your home includes increasing amounts of renewable energy, MVEC has optional programs that give you free and low-cost choices to do even more.
• Finance Options Our program is for members interested in making investments in energy efficiency.
• Business Solutions Our key account team can help your commercial, industrial or agricultural business succeed by increasing energy efficiency, choosing rate-saving options, and optimizing the power use within your facility.

Lighting

• Wherever possible, use ambient sunlight to illuminate workspaces.
• Turn off lights and equipment such as copiers, computers, process machinery, etc. when not in use.
• Replace inefficient incandescent and fluorescent lighting with LED lighting. Upgrading may qualify for MVEC grants and rebates: https://www.mvec.net/business-solutions/
  • A little-known rebate is for Emergency EXIT signs
• Install occupancy and motion sensors to turn lights off automatically in unoccupied spaces.
• Perform regular, seasonal tune-ups on HVAC equipment. Be sure to clean coils and replace filters every 3 months.
  • Do the same for all types of refrigeration equipment such as coolers and freezers.
• Consider tint film or blinds to reduce heat generated by sunlight through windows.

Wi-Fi Thermostat

• Install programmable or smart Wi-Fi thermostats to automatically adjust the temperature according to the season, during closed hours, or when no one is around.
  • A temperature setting of only three to five degrees higher can feel as comfortable with fans and each degree of higher temperature can save about three percent on cooling costs.

Other Ideas

• Use power management features and software to place computers into a low-power “sleep mode” after a set time of inactivity.
  • Use “smart” power strips to shut down power to devices that go into sleep mode and when the workspace is unoccupied.
  • When purchasing new devices look for Energy Star office equipment that uses less energy. Or consider leasing energy-efficient equipment.
• Use weatherstripping and caulking wherever needed. Doing so will help keep conditioned air from leaving the building.
• Educate and encourage employees to be energy-conscious and offer ideas about how energy can be saved.
• Consider a professional energy audit to identify and determine ways to save and use energy more efficiently. Contact MVEC key accounts for more information.

Contact a Key Account Executive
(952) 492-2313 or [email protected]

 

 

 

 

 

 

Temporary power outages, called rolling blackouts or load shed, are a tool used by grid regulators to manage power grids when supply and demand fall out of balance. Cutting power in a controlled and brief manner protects sensitive equipment from being overloaded and allows utilities to carefully bring systems back into supply-and-demand harmony.

The Midcontinent Independent System Operator (MISO) manages the power grid for MVEC and 42 million people in the United States and Canada (see map below). It helps electric providers (like GRE and Basin Electric) in the region to deliver reliable, affordable energy to distribution cooperatives, like MVEC. Think of MISO as the air traffic controller of the region’s grid. Using sophisticated technology, process, and procedures, MISO has a wide-area view and control of the grid that goes beyond any one utility.

If there is an emergency of magnitude that would cause rolling blackouts, as the last resort MISO directs all of the utilities in the region to implement periodic power outages according to pre-determined plans. That means many areas of Minnesota will likely be affected.

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What is a rolling blackout?  Think of it as a rotating power outage that is systematic and temporary to selected areas to balance power on heavy demand days.

Why does this happen? There’s a potential strain due to warmer weather and necessary electrical generation is off-line and not available to meet the energy demand being consumed. If the demand can’t be met, it can result in the Midcontinent Independent System Operator (MISO) issuing rolling blackouts across its service area. MVEC is part of the MISO North service area (indicated by blue on map).

When? Rolling blackouts normally occur during peak energy use times, normally between 4-8 p.m., but they can also happen at any time of the day if the system demand is too great to keep up.

Does this only happen to MVEC members? No, this is not specific to MVEC. Other MISO utilities are directed to do the same thing.

What benefit does it provide? It helps restore balance to the supply and demand of electricity in the markets. A blackout can be up to an hour, then the power is restored and another area is turned off – hence the name rolling blackout.

Did MVEC not plan correctly for rolling blackouts to happen? This is not a shortfall in MVEC planning. Although the cooperative contracted for and our wholesale power suppliers Great River Energy and Basin Electric Power Cooperative have the adequate generating capacity to meet our membership needs, the markets as a whole do not have enough electrical generation to meet regional demand.

If the market is short on electrical generation, all market participants are required to reduce load through a variety of means – the most dramatic being rolling blackouts.

How will we know if an event will happen? We will do our best to communicate with members in advance if MISO calls for an event. Communications will be made on www.mvec.net, Facebook, Twitter,  LinkedIn, and/or email notifications.

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Safety tips if a rolling blackout occurs:

1. Turn off the electrical equipment you were using when the power went out.
2. Keep a flashlight on hand for emergency lighting if needed.
3. Keep your refrigerator and freezer doors shut, if possible.
4. If you have a generator, do not run it inside your home or garage.
5. If using a generator, connect the equipment you want to be powered directly to the outlet(s) of the generator. It is important to not connect a generator to your home’s electrical system.

How can you prepare if an event happens?

• Keep essential supplies handy, like flashlights, batteries, bottled water, and a small supply of food.
• Refrigerated medication: Most will keep well in a closed refrigerator for several hours without any issue. If any concerns, visit your doctor.
• Computer use: keep files and operating systems backed up regularly. Consider a high-quality surge protector for all your computer equipment.
• Electric garage doors: make sure to find where the manual release lever is located and how it functions.

Health-dependent individuals or disability situations:

Members with critical health issues should be prepared with backup plans in case of an outage. If you believe your household qualifies for the Critical Service Load list, please get a physician’s note on clinic letterhead and send it to the address below. Upon receipt, MVEC will call to confirm your phone and location number.

Minnesota Valley Electric Cooperative
Attention: Dispatch Center
125 Minnesota Valley Electric Drive
Jordan, MN 55352

If you are on MVEC’s Critical Service Load list, we can notify you prior to a planned outage allowing you to make alternative arrangements. In the event of an unplanned outage, the cooperative’s restoration process requires the backbone of the system to be restored first. Members on the Critical Service Load list will be placed next on the list.

Energy conservation tips to help reduce electricity use can potentially help avoid rolling blackouts. Thanks for doing your part to help conserve energy!

• Set your thermostat at 78 degrees or higher.
• Install a Wi-Fi thermostat.  Get a $50 rebate and save 10% on energy usage from June to September every year.
• Change the furnace filter – this can reduce energy consumption by up to 15%!
• Turn off lights and other electronics not in use.
• Use major appliances after 10 pm when the demand on the system is much less.
• Charge electric vehicles overnight, when there is less demand and the cost of electricity is least expensive.
• Visit these sites on mvec.net:
  • Energy-saving tips
  • Ways to save
  • Check out the My EnergyXpert Audit Tool

We’ll keep a watchful eye on MISO developments over the summer and will communicate openly. Thanks for being a member of MVEC!

• Build or buy an emergency preparedness kit, including a flashlight, batteries, cash, and first aid supplies.
• Have alternative charging methods for your phone or any device that requires power.
• Know where the manual release lever of your electric garage door opener is located and how to operate it.
• Purchase ice or freeze water-filled plastic containers to help keep food cold during a temporary power outage.
• Keep your car’s gas tank full. Gas stations rely on electricity to power their pumps. If you drive an EV, keep it charged overnight, when there is less demand and the cost of electricity is least expensive.
• If you rely on anything that is battery-operated or power dependent like a medical device, determine a backup plan.