4.1. ERMUSR 11-15-2016 - Laserfiche WebLink

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Section 2 includes the estimated impact of the first two areas. The remaining areas are not included at this time due to uncertainty about the customer makeup in those areas. It is estimated that sales will increase 8% in 2016, 3 % in 2017 and 2% per year thereafter. Exhibit 2-A is a summarized listing of ERMU's historical and projected electric operating results at existing rates. The historical and projected revenues from retail sales of power and energy to different groups of customers are included at the beginning of the exhibit under Operating Revenues. Other Operating Revenues ERMU also receives revenue from other normal operating procedures. These revenues are shown in Exhibit 2-A below the charges for services. These include security system sales, landfill gas generation sales, reduced revenues due to retail customer generation credits, connection charges and customer penalties. ERMU has recently sold its security system business, revenues from this endeavor are removed after 2016. The generation credits are related to a program from Great River Energy. ERMU, as will be discussed below, is changing power supply providers in the fall of 2018. It is assumed that the generation credit program will be discontinued following this change. Utility Revenues combined with Other Operating Revenues results in ERMU's Total Operating Revenues. Revenue Requirements Generation and Purchased Power ERMU currently meets its wholesale power requirements through purchases from Connexus Energy/Great River Energy (Connexus/GRE). ERMU will be switching power supply providers in October 2018 when it will begin a new contract with the Minnesota Municipal Power Agency (MMPA). Projections of wholesale power expenses are based on anticipated Connexus/GRE rates through September 2018 and MMPA rates thereafter. - 2 - 52