6.1. ERMUSR 03-18-2014 - Laserfiche WebLink

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Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Theresa Slominski—Finance and Office Manager John Dietz—Chair Al Nadeau—Vice Chair Daryl Thompson —Trustee MEETING DATE: AGENDA ITEM NUMBER: March 18, 2014 6.1b SUBJECT: Staff Update DISCUSSION: We had 2,271 credit card payment transactions in February, compared to 2,347 in January. The fee for December should be$5,109.75. We received a PCA charge of$269,812.29 for February's billing. The PCA was a result of January's energy purchases and was justified to me via the explanation below from GRE's president: January was an unusual month. In terms of heating degree days, it was the 17th coldest in Minnesota over the past 142 years. GRE's energy load was 5.3 percent over budget and 6.7 percent over 2013, and coincided with fuel supply constraints and volatile energy prices across the country. Frigid sustained temperatures.propane shortages, and high gas prices(due in part to a pipeline fire)were major reasons for extreme and unanticipated price volatility in MISO. In January, we paid significantly more for energy purchased than the revenue received for the energy we generated and sold In short, we had high load and paid high prices for that load This was the major reason for the PCA. This leaves us with a balance of$367,995.68 accumulated PCA from January and February. We will continue to monitor the PCA balance to determine if charges will need to be passed along to our customers. The auditors were here February 27ih and 28th for field work and all went pretty well. The auditors are anticipating presenting the audit at the April 8th Commission Meeting. We are preparing for our first site visit from NISC March 31" through April 4th for the business practices analysis component related to the software conversion for the accounting side. We have a document to complete prior to their arrival that is a series of questions on how we currently complete tasks. After this site visit, the next step will be to send current data from our software to NISC to begin the actual data conversion. .$ Page 1 of 1 INATURE Reliable(Provider P owexeo To SeFIVE 79