5-Minute Response (5 MR)

5 MR is an interruptible overlay. The overlay amends the standard contract and applicable rate schedule by adding 5 MR pricing and interruption arrangements.

Customers with the following load characteristics may qualify for 5 MR:

• Contract demand greater than 1,000 kW at a single delivery point

• An average monthly load factor greater than 40 percent

• A minimum of 500 kW of Effective Interruptible Demand (EID is the projected demand amount expected to be available for interruption).

When notified of a suspension, the customer must reduce load to the protected demand level. The protected demand is the demand level that customers reduces load to upon 5 minutes’ notice when called for an interruption. TVA will not necessarily interrupt all 5 MR customers at the same time; suspensions of availability may be on a rotational basis and/or “system area of reliability need” basis.

All products with a 5-minute notice, including 5 MR, will be subject to a program limit of 1,500 MW EID, which will be available on a “first come – first served” basis.  Existing 5-minute customers will be given the first option to convert before general enrollment of other customers.

Customers currently on a 5-minute notice product, such as Flat Price Interruptible and Variable Price Interruptible Options A and B, may convert to 5 MR for up to the amount of 5-minute notice product currently under contracts, provided they meet the 5 MR requirements. Firm power customers may add 5 MR to existing firm contracts provided that there is room in the program and that they meet all other 5 MR requirements.

• The typical overlay term is 5 years and can be terminated by any party on or after the third anniversary of the overlay on at least 2 years notice. (The underlying contract term can be no shorter than the minimum term required for 5 MR).

• Up to 100 percent of customer’s contract demand may be eligible for a 5 MR overlay.
• A $4.00 per kW credit will be paid for 5 MR demand in any month the customer’s total load factor exceeds 50 percent. 5 MR customers will also be eligible for all other credits for which their underlying load also qualifies.
• During a 5 MR overlay, customers will not be responsible for TVA’s portion of the demand ratchet minimum bill on the 5 MR portion of their load (said TVA portion being determined per Adjustment III of the Wholesale Schedule).
• Customers will incur a credit reduction charge for failure to reduce load in accordance with the contract.
• Customers will pay an administrative charge of $700 per month.

Upon 60 days’ notice and no more than once per 12-month period, TVA may adjust the credit amount, credit reduction charge amount, and administrative charge amount. In the event of any annual decrease in the credit or increase in the credit reduction charge by more than 12 percent, customer may terminate the overlay upon at least 15 days’ written notice prior to the effective date of such decrease or increase, respectively.

Use of a 5-minute interval demand meter is required.

Customers must submit a load reduction plan and update it annually. Customers will be required to demonstrate their load reduction plan within 2 years of subscribing to the program.

Customers that have not demonstrated their load reduction plan will pay a higher credit reduction charge for non-compliance and may be removed from the 5 MR program if less than 100 percent compliant.