Title
RESOLUTION APPROVING DULUTH ENERGY SYSTEM’S THERMAL ENERGY HOT WATER RATE FOR EASTERN CANAL PARK.
Body
CITY PROPOSAL:
RESOLVED, that Ever-Green Energy, Inc. (“EGE”), the city’s manager of Duluth Energy Systems, has recommended an increase in the district heating hot water Energy Charge for customers connected to the eastern Canal Park hot water system to 70% of the Steam Consumption Rate plus $6.00 per million BTU for thermal energy service each month; and
FURTHER RESOLVED, that the city has determined that such rate is reasonable and necessary to defray the costs of operating the subject system.
FURTHER RESOLVED, that pursuant to Section 2.3.7 of the energy system management services agreement between the city and EGE, the city council hereby approves the Energy Charge at 70% of the Steam Consumption Rate plus $6.00 per million BTU for thermal energy services provided to customers connected to the eastern Canal Park hot water system, effective on and after January 1, 2024.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to approve modification of the Energy Charge for thermal energy services provided to customers (Canal Park Lodge, Canal Park Brewery, Hampton Inn, Inn on Lake Superior) connected to the eastern Canal Park hot water system from $2.00 per million BTU for thermal energy service to $6.00 per million BTU plus 70% of the Steam Consumption Rate. The proposed Canal Park water rate increase is required to more equitably distribute Duluth Energy Systems’ operating costs between steam and hot water customers and the overall Canal Park energy cost is 18% lower than the lowest hot water customer charge (Group 9).