TVA’s 5‑Minute Response (5 MR) and 60-Minute Response (60 MR) Interruptible Power Products
The 5MR and 60MR contracts offer a combination of firm and interruptible power levels with credits applicable to the interruptible demand amount. This provides a savings opportunity to customers who can curtail the interruptible load in either 5 or 60 minute periods. As described by TVA, these products “allow participating commercial and industrial customers to qualify for credits on their power bills in exchange for giving TVA the right to suspend the availability of 5 MR (or 60 MR) power to address reliability needs of the TVA system.”
Eligibility requirements for the 5 MR / 60 MR programs include: minimum total contract demand of at least 1,000 kW at a single delivery point, minimum EID (Effective Interruptible Demand) of at least 500 kW, minimum average load factor of 40 percent, and an adequate plan for meeting 5 MR / 60 MR curtailment requirements. These programs replace the existing FPI (Flat Price Interruptible) programs; while they offer similar credits on demand, the penalties for failing to curtail are more stringent. The 5 MR / 60 MR programs will be offered first to existing interruptible customers but will also be open to new interruptible customers on a first come basis up to a TVA defined maximum of 1,500 MW. These interruptible options require tri-party contracts between TVA, MPS and the customer.
5 MR is based on a $4.00 credit applied to the interruptible demand portion of the load. A customer defines the firm demand level their facility can reduce to on a 5-minute notice and the portion of interruptible demand above that receives a $4.00 credit per kW in any billing month in which the customer’s load factor exceeds 50 percent.
60 MR is based on a $1.70 credit applied to the interruptible demand portion of the load. A customer defines the firm demand level their facility can reduce to on a 60-minute notice and the portion of interruptible demand above that receives a $1.70 credit per kW in any billing month in which the customer’s load factor exceeds 50 percent.
Curtailment notices come from an automated TVA call system and the customer must be positioned to receive the call and take prompt action. Both 5 MR and 60 MR are billed on firm rates for all demand and energy used each month, and then the appropriate credit is applied based solely on the demand portion of the interruptible load.
Click here to see the 5 MR brochure or the 60MR brochure from TVA outlining the above eligibility requirements, as well as a description of how the pricing options work. New customers on the 5 MR / 60 MR programs may be required to have load evaluated by TVA for a period of time at no cost to the customer to confirm eligibility for interruptible demand. The 5 MR / 60 MR products will be available for customers beginning December 1, 2007.
For more information regarding 5 MR / 60 MR, please call
us at (423) 586-4121
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