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4.1. ERMUSR 11-15-2016
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4.1. ERMUSR 11-15-2016
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11/10/2016 4:18:08 PM
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City Government
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ERMUSR
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11/15/2016
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DRUE BERG CDf15ULTIRC. LLC <br /> November 15, 2016 <br /> Elk River Municipal Utilities Commission <br /> 13069 Orono Parkway <br /> PO Box 430 <br /> Elk River, MN 55330 <br /> Subject: Electric Rate Study <br /> Commission Members: <br /> Dave Berg Consulting, LLC has undertaken a study of the retail rates Elk River Municipal Utilities (ERMU) <br /> charges its customers for electric service. This report summarizes the analyses undertaken and the <br /> resulting recommendations for changes to the existing rates. <br /> The recommended rate adjustments have been made based on overall revenue and cash reserve needs <br /> of the utility and the results of a cost-of-service analysis. As a result of the study undertaken an overall <br /> rate increase of 2.8% has been recommended. This adjustment has been designed to help ensure the <br /> continued financial strength of ERMU. The increases will not affect all customers equally and specific <br /> rate design recommendations are included for each retail rate class. <br /> Thank you for the opportunity to be of service to ERMU through the conduct of this study. I wish to <br /> express my appreciation for the valuable assistance I received from ERMU staff relative to the execution <br /> of this study. <br /> Sincerely, <br /> Dave Berg Consulting, LLC <br /> i <br /> David A. Berg, P <br /> Principal <br /> Dedicated to providing personal service to consumer-owned utilities <br /> Dave Berg Consulting, LLC I 15213 Danbury Ave W, Rosemount, MN 55068 1612-850-2305 <br /> www.daveberronsulting.com <br />
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