5.3. ERMUSR 10-09-2012 - Laserfiche WebLink

Home Browse Search

the rate impact experienced by ERMU. For preliminary budgeting, the attached expense budget reflects a 5% increase in wholesale power costs. This draft of the electric expense budget reflects the estimated 5% in wholesale power cost increase, update ERMU customer count, and updated ERMU power sales. Similar to the water expense budget, this draft does not reflect any increase in ERMU electric rates. The rate design will be completed for the November meeting. Without any electric rate increase, the electric department would see a $1,316,385 or 4.5% loss. The rate design would be done to cover this amount plus a small margin. In the recent past we have designed for a 1.5% margin. The following are recommended discussion point for the Commission. 1. Wages—The water and electric budgets reflect a 3% wage increase as typically done for preliminary budgeting. The utilities practice has been to have the Wage and Benefits Committee review wages and benefits then make a recommendation to the Commission for consideration. The Commission typically will give the Committee direction for items to survey or consider. Possible consideration could include review of a COLA formula based pay increase system, third party benchmarking of wages and/or benefits, analysis of employee turnover and related expenses. 2. Rates and Margins —Does the Commission have and comments on direction or have any concerns prior to the development of the 2013 rates? Because the financial reserve targets have been met, what is the Commission's comfort level with margins? 3. Staff Additions— In August staff proposed the consideration of the addition of 3 staff positions: an executive assistant, a conservation and key accounts assistant, and a water operator. Staff has reviewed the proposed positions, prioritized them by greatest positive impact and value, required skill sets, and position duties. The highest priority would be the executive assistant. This position would provide higher level administrative support for the managers, oversee the preparation of the commission packets and marketing materials, oversee social media communications, and provide secretarial duties for the Commission board meetings. Through these duties, this position would free up customer service resources and managerial resources. This position would be a non-exempt, salary position. The second highest priority would be the conservation and key accounts assistant. This position would provide technical and customer service assistant. Job duties from this position would include support for conservation programs, key accounts, well head protection program support, irrigation system inspections, and energy audits. Through these duties, this position would significantly free up water operator resource allowing the licensed water operators to focus on water system maintenance. This position would also free up the Conservation and Key Account Manager to focus on higher level department issues. [ oviRie Page 2 of 3 NATUR E Reliable Public Power Provider POWERED To SERVE