406 Electric Utility

Section 1. LEGISLATIVE FINDINGS. Whereas, the Federal Energy Regulatory Commission has issued Order No. 719, 125 FERC ¶ 61,071, 73 Fed. Reg. 64,099 (October 28, 2008).

WHEREAS, pursuant to Order No. 719, 18 C.F.R. § 35.28 (g)(1)(iii) provides: “Each Commission-approved independent system operator and regional transmission organization must permit a qualified aggregator of retail customers to bid demand response on behalf of retail customers directly into the Commission-approved independent system operator’s or regional transmission organization’s organized markets, unless the laws and regulations of the relevant electric retail regulatory authority expressly do not permit a retail customer to participate.”

WHEREAS, pursuant to Order No. 719, 18 C.F.R. § 35.28(g)(1)(i)(A) provides: “Every Commission-approved independent system operator or regional transmission organization that operates organized markets based on competitive bidding for energy imbalance, spinning reserves, supplemental reserves, reactive power and voltage control, or regulation and frequency response ancillary services (or its functional equivalent in the Commission-approved independent system operator’s or regional transmission organization’s tariff) must accept bids from demand response resources in these markets for that product on a basis comparable to any other resources, if the demand response resource meets the necessary technical requirements under the tariff, and submits a bid under the Commission-approved independent system operator’s or regional transmission organization’s bidding rules at or below the market-clearing price, unless not permitted by the laws or regulations of the relevant electric retail regulatory authority.”

WHEREAS, pursuant to Minnesota Statute 455 the City Council is authorized to enact regulations governing the provision of electric power and energy to retail customers served by the Detroit Lakes Municipal Electric Utility.

WHEREAS, the City Council has determined that it would be harmful to the demand response in the operation of the Municipal Electric Utility, and the collective interests of the Municipal Electric Utility, as a load serving entity with an obligation to serve at retail, and to the Municipal Electric Utility’s retail customers to permit any entity other than the Municipal Electric Utility itself or its authorized designee to aggregate demand response on behalf of its retail customers.

WHEREAS, the City Council, as the electric retail regulatory authority for the Municipal Electric Utility, has determined it to be desirable that the aggregation of demand response on behalf of retail customers served by the Municipal Electric Utility to be bid directly into the organized electric and ancillary services markets administered by the Midwest Independent Transmission System Operator (MISO) (or any successor independent system operator or regional transmission organization to which the Municipal Electric Utility or Missouri River Energy Services (MRES) and/or Western Minnesota Municipal Power Agency (WMMPA) is a Participant) be performed by the Municipal Electric Utility or its authorized designee.

Section 2. BE IT FURTHER ORDAINED. Hereby the Detroit Lakes City Council further ordains that:

A. The Municipal Electric Utility or its authorized designee is the sole entity permitted to bid demand response on behalf of retail customers served by the Municipal Electric Utility directly into any Commission-approved independent system operator’s or regional transmission organization’s organized electric markets.

B. Retail customers served by the Municipal Electric Utility wishing to bid their demand response into a Commission-approved independent system operator’s or regional transmission organization’s organized electric markets may do so by participating in the program established by the Municipal Electric Utility or its authorized designee. Retail customers are not permitted to participate in the demand response program of any other entity without the express prior authorization of the Municipal Electric Utility.

            C.         The Municipal Electric Utility or its authorized designee is the sole entity permitted to bid demand
                        response on behalf of retail customers served by the Municipal Electric Utility directly into any
                        Commission-approved independent system operator’s or regional transmission organization’s
                        organized markets for energy imbalance, spinning reserves, supplemental reserves, reactive power
                        and voltage control, or regulation and frequency response ancillary services (or its functional
                        equivalent in the Commission-approved independent system operator’s or regional transmission
                        organization’s tariff).

D. Retail customers served by the Municipal Electric Utility wishing to bid their demand response

into a Commission-approved independent system operator’s or regional transmission
organization’s organized markets for energy imbalance, spinning reserves, supplemental reserves,

reactive power and voltage control, or regulation and frequency response ancillary services (or its

functional equivalent in the Commission-approved independent system operator’s or regional

transmission organization’s tariff) may do so by participating in the program established by the

Municipal Electric Utility or its authorized designee. Retail customers are not permitted to

participate in the demand response program of any other entity without the express prior

authorization of the Municipal Electric Utility.

Section 3. EFFECTIVE DATE. This Ordinance shall be in full force and effect from and after its passage and publication as required by law. Adopted: 5/12/2009 Ord. No. 334

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