| Load Management FAQ
Common questions regarding
the load management program
What is load management?
Why do I need a backup system?
How long can my equipment be controlled?
What factors affect the amount of control?
Is the load management program still a value?
Are we running out of power?
Is Minnkota controlling loads to sell power into the high-priced energy marketplace?
Why don’t we build new generation to serve off-peak loads?
What can I do if my backup system is inadequate or isn't working?
What
is load management?
Load
management, commonly referred to as ripple or off-peak, is a program developed
by Minnkota Power Cooperative, Beltrami Electric's wholesale power supplier,
that allows specific loads to be turned off during peak electrical demand. This
allows members to reduce the cost of their electric heating by reducing
electrical demand expense. Other equipment such as water heaters and dryers can
also be connected to the off-peak service and receive the reduced rate,
currently
3.5 cents per kilowatt-hour (kwh) or approximately 40-50 percent lower than the
regular rate.
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Why
do I need a backup system?
To
qualify for the load management program, participants must have an adequate
backup heating system to use when their electric heating system is
controlled. The backup system must be able to meet your heating needs during
these control periods.
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How
long can my equipment be controlled?
This
varies depending on the equipment you have connected to the off-peak service.
Short-term interruptible loads, such as water heaters and
dryers, can be controlled for four hours at a time and up to eight hours per
day.
Medium-term interruptible loads, such as slab heat and
thermal storage heat, can be controlled up to 16 continuous hours per day.
Long-term interruptible loads, such as dual fuel heating
systems, can be controlled for extended periods. It is very important that your backup heating system is able to
meet your heating needs during these times.
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What
factors affect the amount of control?
A
number of factors affect the amount of control, including market conditions, weather, generation capacity and transmission constraints.
All of these factors play a role in the amount of control.
The
biggest factor influencing load control is the wholesale energy marketplace.
Overall growth in electric use has consumed much of the surplus power available
in the region. Much of the
“peaking” generation is natural gas-fired, which is more costly to operate
than lignite-fired generation.
Another
factor affecting control is the weather. Low temperatures in the region increase
the demand for electricity. When the demand exceeds the available capacity,
Minnkota purchases available power when it’s below the pre-determined price
cap of 4 cents per kilowatt-hour.
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Is
the load management program still a value?
A
blend of off-peak electric heat and a fossil fuel backup is still significantly
less expensive than heating with straight propane or fuel oil. However, it is
very important to have an adequate backup heating system that fits your needs
and lifestyle. It is projected the amount of control for dual fuel heating
systems will be anywhere from 300-400 hours this year. If dual fuel systems were
controlled for 400 hours, you would still be able to operate the electric
portion of your dual fuel system 80 percent of the heating season. By having other appliances on the off-peak program, such as a
water heater or dryer, you can take advantage of the reduced rate all year long,
not just during the heating season.
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Are
we running out of power?
No.
Minnkota Power has enough generating capacity to serve its firm load. There are
times when Minnkota’s firm load (lights, outlets, electric ranges,
refrigerators, non-controlled heat, etc.) and non-firm (controllable loads such
as equipment on the off-peak program) load combined are greater than the
available capacity. At those times, Minnkota will either purchase power on the
market when it’s available at an affordable price or control its non-firm
load.
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Is
Minnkota controlling loads to sell power into the high-priced energy
marketplace?
No.
Minnkota actually purchases power to cover its off-peak loads when demand
exceeds capacity and when it’s available below the pre-determined ceiling
price of 4 cents per kilowatt-hour.
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Why
don’t we build new generation to serve off-peak loads?
Currently, Minnkota Power has enough generation capacity to serve its firm loads. The load
management program was developed to utilize generating capacity that was
available but not being used during off-peak times. Members voluntarily
participate in this program and pay less per kilowatt-hour for all equipment
connected to the off-peak service. In exchange, the off-peak equipment is
controlled during periods of peak demand.
The
average price to build new generation capacity is $1.5 million per megawatt
(mw). It would be very costly for Minnkota to build new generation that would
only be used a few hundred hours per year and would undoubtedly result in a rate
increase for all members.
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What
can I do if my backup system is inadequate or isn’t working?
It
is very important to have an adequate backup system that is functioning properly. If your backup system is not functioning, contact a heating
contractor immediately to have the problem fixed. If you feel your backup system
is no longer meeting your needs, contact the cooperative or an electrical or
heating contractor for suggestions on how you can improve your system.
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