12-13-2011 ERMU MIN - Laserfiche WebLink

Home Browse Search

Page 4 Regular meeting of the Elk River Municipal Utilities Commission December 13, 2011 The GRE budget has been approved and their wholesale rate increase results in a power cost increase to ERMU of approximately 8.33%. The proposed ERMU 2012 electric rate increases are being held as low as possible with passing along the power cost increase. The proposed 2012 electric rates are: Residential Basic Monthly Electric Charge $9.50 Summer Energy Charge (May-Sep) $0.1249/kWh Winter Energy Charge (Oct-Apr) $0.1116/kWh (This results in an increase for a typical residential customer of 7.1 %) Non-Demand Commercial Basic Monthly Electric Charge $16.00 Summer Energy Charge (May-Sep) $0.1199/kWh Winter Energy Charge (Oct-Apr) $0.0995/kWh (This results in an increase for a typical non-demand commercial customer of 6.9%) Demand Commercial Basic Monthly Electric Charge $50.00 Summer Demand Charge (May-Sep) $15.89/kW Winter Demand Charge (Oct-Apr) $11.27/kW F,nergy Charge $0.0598/kWh (This results in an increase for a typical deman d commercial customer of 4.0%) John Dietz asked how customers would be notified. Staff responded there would be an article in the newsletter. Discussion followed on the power cost adjustments (PCA's). Daryl Thompson asked if the PCA could be put on the customer bills even if ERMU will be absorbing the fee. John Dietz asked if the fee could be charged and then credited out so the customer can see what ERMU is absorbing. Another item for discussion was the 10% penalty charged to customers who pay late. Discussion followed. Consensus was to work with the companies when the fees are over $1000. The 2012 water rates are proposed to remain unchanged for the third consecutive year. The WAC fees will increase from $3000 to $3060 to match the City of Elk River's 2% increase for SAC fees. John Dietz said staff did a good job in compiling all the information for the budget. Theresa Slominski informed the Commission that the City of Elk River is looking at changing the deductible for the property insurance which would result in considerable premium savings. Daryl Thompson moved to approve the 2012 Electric and Water budget as presented. AI Nadeau seconded the motion. Motion carried 3-0.