An Overview of. . .

Stearns Stearns Electric Electric

AssociationAssociationPresented by: Dave Gruenes, District Manager

Stearns Electric Association Facts

Headquarters: Melrose,

MN

Branch office: St. Joseph, MN

Stearns Electric Association Facts

Year Founded: 1937

Service Area: 2,000+ square miles

Number of Services: 24,841

Number of Employees: 59 full time

Number of Substations: 32

Miles of Line: 3,947 total

1,283 underground

2,664 overhead

Stearns Electric Association

Serving the counties of:

StearnsTodd

Morrison Kandiyoh

i Pope Douglas

STEARNS COUNTY

•#1 in MN for the total value or agricultural products sold

•#1 in the value of livestock, poultry, and their products (specifically dairy)

•#1 Dairy County, Stearns supplies 15% of the total dairy products produced in MN

•#1 producer in amounts of oats for grain, corn for silage and forage in MN

Wholesale PowerGreat River Energy

• Maple Grove, MN

• 2nd largest electric utility in the state based on generating capacity.

• 5th largest generation and transmission cooperative in the United States.

• Provides electric service to 28 distribution cooperatives including Stearns Electric Association.

Wholesale PowerWestern Area

Power Administration

• Hydroelectric Power

• 15 western state region

• An agency of the U.S. Department of Energy

Conservation Improvement Program (CIP) Goals•Promote awareness and adoption of energy efficient technologies

•Help households and businesses reduce their energy costs

•Defer costly utility infrastructure investments

•Reduce emissions and conserve resources

Minnesota CIP Law Requirements•Electric utilities must spend a minimum of 1.5% of revenues. (Xcel must spend 2%)

•Natural gas utilities must spend a minimum of .5% of annual revenues.

•At least .2 % of residential revenues must be spent on programs serving low income.

CIP Spending RequirementFunds that utilities provide in rebates are funded through the rates paid by ratepayers.

Members are encouraged to access and use utility CIP funds since in essence “you are getting back some of the money you’ve paid in”.

Why Offer Rebates?1.State Mandate

2.Helps Co-op Member-Owners Save Money

3.Economic Development Tool By Incentivizing Investment

Residential Rebates

Residential Rebates for 2012

Quality Install Air Source Heat Pump

SEER 13 $330SEER 14 $480SEER 15 $580SEER 16 $630

Quality Install Cycled Central Air Conditioner

SEER 13 $30SEER 14 $180SEER 15 $280SEER 16 $330

Ground Source Heat Pump $200 / ton (5 ton max.)

New Dual Fuel Rebate (9kW min.)$200

Thermal Storage Space Heating (5kW min.) $200Cycled Central Air Conditioning (only) $100 or free installationNew Marathon Water Heater

$300

ECM Motor$50

Electric Vehicle ChargeWise

Up to $500Ductless ASHP

$100Clothes Washer

$25Dishwasher

$25Refrigerator (new home) $25Refrigerator (with recycling of old unit)

$75Freezer (with recycling of old unit)

$75

Commercial, Industrial and Agricultural Rebates

2011

•87 C&I and Ag Rebates•$94,117.18 awarded•Average rebate $1,081•Largest $21,760•Smallest $44•kWh Savings 1,932,249 annually•Total project Costs $717,786•Cost after rebate $623,286•Amount Saved Annually $164,241•19% ROI after rebate•3.8 year payback

Carbon Reduction 3, 453, 409 kWh (1.89 lbs. CO2e / kWh)

•Annual greenhouse gas emissions from 330 passenger vehicles.•CO2 emissions from 23.1 tanker trucks’ worth of gasoline.•CO2 emissions from the electricity use of 210 homes for one year.•Carbon sequestered annually by 368 acres of pine or fir forests.•CO2 emissions from burning 9 railcars’ worth of coal.•Greenhouse gas emissions avoided by recycling 581 tons of waste instead of sending it to the landfill.

Your Utility as a Resource

If you are contemplating making any energy efficiency improvements or purchasing energy efficient equipment, your first call should be to your utility provider.

Prescriptive Rebates:Defined dollar amounts for energy savings equipment. Prescriptive rebates are established for ease of use as well as consistency in rebated amounts.

Custom Rebates:Intended to encourage projects that best met the unique needs of each qualifying member. Applications would normally include specialized equipment or processes that save electricity and where a rebate is not available through the prescriptive rebate process.

Can Equipment Dealers or Contractors help with the rebate process?Most definitely by helping with the following:Promote utility rebates to your customers.Provide supporting material to utility on energy savings. In specialized applications vendor information is critical.

EXAMPLEBarn Lighting Retrofit (T-12 to T8 fixtures)

Cost of Project $2,324Rebate $

800Cost after rebate

$1,524kWh savings 5,850Annual Electric savings $468Payback 3.25

yrs. ROI

30.7%

EXAMPLEVFD for 10 HP Milk Pump For a Mid-sized Dairy

Cost of Project $6,600Rebate

$ 350Cost after rebate

$6,250kWh savings

18,153Annual electric savings $1,633

Payback 3.8years

ROI 26.1%

EXAMPLEPlate Cooler Dairy (75 cows)

Cost of Project $3,412

Rebate $ 750

Cost after rebate $2,662

kWh savings 5,102

Annual electric savings $478Payback 5.57

yearsROI

18%

EXAMPLEPlate Cooler Dairy (320 cows)

Project Cost $4,291

Rebate $1,500Cost after rebate

$2791kWh savings 21,715Annual Energy savings $2,009

Payback 1.39 years

ROI 72%

EXAMPLEAg Ventilation (Installation of Variable Frequency Drives)

One 15 HP motorThree groups totaling 22 HP motorsFour groups totaling13 HP motors

Cost of Project $23,135

Rebate $ 4,655

Cost after rebate $18,480

kWh savings 128,413

Annual Electric savings $7,704

Payback 2.4 yrs.

ROI 41.6%

EXAMPLEDairy Manure Handling (Sand Flush System)

Two 25 HP motorsOne 15 HP motorOne 10 HP motor

Cost of Project $28,975

Rebate $2,625

Cost after rebate $26,350

kWh savings 132,355

Annual savings $7941

Payback 3.3 years

ROI 30.1%

EXAMPLEAutomatic Temperature Controls for Hog Farrowing Facility - Two Farrowing rooms

Total Heat Lamps 104Lamp Wattage 125Operating days/yr. 324

Manual controls – No adjustment in temp

101,088 kWh/yrAuto Controls 85,925 kWh/yrTotal Project Cost $2,571Rebate $ 500Cost after rebate $2,071kWh savings

15,163Annual Savings $618

Payback 3.18 yrs

ROI 29.8%

EXAMPLELighting Retrofit Chicken Grower BarnsTo CFL Lighting

2,148 – 9 Watt bulbsCost of Project

$13,446Rebate $

4,296Cost after rebate

$9,150kWh savings

274,600 kWhAnnual savings

$21,968Payback 5

monthsROI

240%

Questions?