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2.2. ERMUSR 12-13-2016
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2.2. ERMUSR 12-13-2016
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Association)First Line Supervision Training Program. Mark Fuchs announced that Tom <br /> Geiser,who was not in attendance,had also completed the MMUA First Line Supervision <br /> Training Program. The Commission congratulated the employees on their achievements. <br /> 2.0 CONSENT AGENDA(Approved By One Motion) <br /> John Dietz had a few questions on the financials. Staff responded. There was discussion on the <br /> accumulated PCA credits and when to give the credits back to our customers. Commission <br /> consensus was to give the PCA credit in 2017 on the first bill reflecting the rate increase; Jennie <br /> stated that would be on the February bill. <br /> Al Nadeau moved to approve the Consent Agenda as follows: <br /> 2.1 October Check Register <br /> 2.2 October 11,2016 Regular Meeting Minutes <br /> 2.3 October 17,2016 Special Meeting Minutes <br /> 2.4 Financial Statements <br /> 2.5 2016 Third Quarter Performance Metrics and Incentive Compensation Update <br /> Daryl Thompson seconded the motion. Motion carried 3-0. <br /> 3.0 OPEN FORUM <br /> No one appeared for open forum. <br /> 4.0 OLD BUSINESS <br /> 4.1 Cost of Service and Rate Design Study <br /> ERMU staff has been working with Dave Berg Consulting, LLC on a cost-of-service and <br /> rate design study. The work was done to evaluate possible changes to rates and services <br /> that are a result of changing conditions, including but not limited to: additional customers <br /> and energy sales from the transfer of territory from Connexus Energy; and the transition <br /> from ERMU's current wholesale power provider to Minnesota Municipal Power Agency <br /> (MMPA) in October 2018. <br /> David Berg was at the meeting to present the final report and answer any questions the <br /> Commission may have. Before he began, David made a few clarifications in regards to the <br /> analysis and assumptions utilized relative to the report. David walked the Commission <br /> through the high points of the report which included: Projected Operating Results with <br /> Existing Rates; Cost-of-Service; and Proposed Rates. Based on the overall revenue and <br /> cash reserve needs of the utility, and the results of the cost-of-service analysis, an overall <br /> rate increase of approximately 2.8%was recommended. As the rate increase will not affect <br /> Page 2 <br /> Special Meeting of the Elk River Municipal Utilities Commission <br /> November 15,2016 <br /> 21 <br />
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