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&6�- 6 <br />0 MEMO TO: Clerk -Administrator Pauloy <br />FROM: Ric flinetur Director of Public Works <br />DATE: June 6. 1988 <br />SUBJECT: ELECTRIC RATE CHANGE - WELL NOS. 1 AND 6 <br />I have discussed our current Time of Day Rate (off peak charges) <br />with Nary Jarnot of Northern States Power Compars (NSP). NSP is <br />now offering a Peak Controlled Service rate. Its. Jarnot <br />discussed the benefits of this new rate compared with our <br />current rate. <br />,,G currenLly unerate Well Nos. 1 3, 5 and 6 only between 9:00 <br />p.m. and 9:00 a.m. This has given us a very beneficial rate <br />(Time of Day Service). Well No. 2 has a natural gas engine and <br />Well No. 4 is operated only during periods of high demand. Well <br />No. 4 operates on the firm demand electric rate. <br />The Peak Controll d Service Rate requires that the City contract <br />with NSP to shut down equipment during very high usage periods. <br />In 1987 there were 5 days when usage was restricted and on those <br />days the restriction averaged 5 hours. There are two major <br />j benefits to the City; a) cost of electricity, and b) flexibility <br />in pumping. Ile would continue the same low charges we currently <br />have during off-peak times (9:00 p.m. to 9:00 a.m.); and during <br />the day we would be able to use the wells at a lower rate than <br />currently and without any penalty charge (current time of day <br />r3tes impose severe praalties :oi day time usage). Well Nos. 1 <br />an: 6 are the only wells which qualify for the Peak Controlled <br />rate as thr a is a minimum "shut down load" of 100 W. <br />Utilizing these two wells in lieu of Well No. 4 during daytime <br />periods would save approximately 30 percent compared to current <br />rates. <br />1-10 would also have greater flexibility in having four wells <br />available during the day versus the two we currently can <br />operate. Ile could reserve Well No. 4 for emergency use only. <br />This could help alleviate the "dirty water" problems we <br />occasionally have when operating Well No. 4. <br />fly recommendation is to contract with NSP for Peak Controlled <br />Service at 'jell Nos. 4 and 6. <br />RAN/BAC <br />l-7 <br />