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Designing an effective rate for our members

Great River Energy is a not-for-profit cooperative. We are owned by our members, who are also our customers. The design of our rates is intended to recover the costs of the services we provide to our member/customers. Unlike an investor owned utility, our rates are not intended to maximize shareholder wealth.

Great River Energy is doing all it can to hold the line on costs
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Designing an effective rate structure is becoming more and more complex as the energy industry experiences rising costs and changing cost drivers. These cost drivers include: increased volatility in fuel costs and wholesale market prices, environmental regulations and mandates, rising construction costs, distributed generation policies, and federal regulations related to climate change.

One of the goals of Great River Energy’s rate structure is to provide our members and their end-use consumers with the knowledge, tools and proper price signals to manage their energy consumption and costs. We do this by providing conservation rebates and incentives, load management programs and time of use energy rates.

We review our rates and rate structure annually to ensure that we continue to meet the needs of our members.

PURPA qualifying facilities (QF) – under 40 kW

Minnesota State Statute 216B.164, subdivision 3 requires cooperatives to compensate PURPA QFs having less than 40-kilowatt (kW) capacity for net input into the utility system at the average retail utility energy rate. Please contact your local distribution cooperative for more information about applicable rates.

PURPA qualifying facilities (QF) – 40 kW or greater

Minnesota State Statute 216B.164, subdivision 4 requires cooperatives to purchase all energy and capacity made available by an interconnected PURPA QF having 40-kW or more, capacity, and pay the PURPA QF the cooperative’s full avoided capacity and energy cost.

The following table represents Great River Energy’s current rates for full avoided capacity, energy and Renewable Energy Certificates (REC’s) costs as calculated in accordance with Minnesota Rules 7835.

 

Footnotes:

1 On-Peak hours are defined as weekdays from 10:00 to 20:00 CPT except for the following holidays: New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day.

2 Off-Peak hours are defined as all hours besides on-peak hours.

3 All hours rates are only available for QF’s that provide Firm Power as defined in Minnesota Rules 7835.0100.

4 Only available for energy produced by a QF using an approved renewable technology and for which Great River Energy receives all Renewable Energy Credits (REC), tradable emission credits, green tags and other associated renewable and environmental attributes.

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