12-13-2005 ERMU MIN - Laserfiche WebLink

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Page 2 Regular meeting of the Elk River Municipal Utilities Commission December 13,2005 Theresa Slominski relayed to the Commission that she has not received notice on the tobacco settlement. The sales tax abatement from 2004 is still unresolved but will check later this month. With the outsourcing of bills that will be in affect for the January mailing,the bills will look different and also have some added features. Samples of the new bill design were handed out. Steve McDonald recently did the pre-audit and everything was fine. He will be back in March of 2006 for the fmal audit. 5.2 Review Wholesale Electric Rate GRE's 2006 wholesale electric rate increase reflects$251,000 or a 2.51%increase. Our 2006 budget required a$251,000 retail rate increase to cover the costs of the wholesale rate increase. Jerry Takle reported that Connexus is looking into the possibility of"time of use meters". This would be one rate for 10:00 p.m.to 2:00 p.m. and another rate for the 2:00 p.m. to 10:00 p.m.time slot. The future availability of power was discussed. This wholesale rate discussion was informational only,no action taken. 5.3 Review& Consider 2006 Electric&Water Rate Due to the wholesale rate increase of approximately 2.51%staff is recommending a overall rate increase of 2.3%or 346,000. Recommendations are as follows: ELECTRIC Winter Summer Residential from$0.0727 from$0.0872 kwh increase$0.00132 to$0.07402 to$0.08922 Commercial from$0.063 from$0.0849 kwh increase$0.00132 to$0.06432 to$0.08622 Demand Power from$8.50 from$11.25 to$9.25 to$13.00 Energy from$0.0418 from$0.0418 to$0.0406 to$0.0406 There were also some changes recommended to the other rate classes including off peak, street lights,and security lights. WATER 1st step from$1.30/1000 gallons to$1.35/1000 gallons 2"d step from$2.50/1000 gallons to $3.00/1000 gallons Bulk water rate from$0.055/200 gallons to$0.60/200 gallons WAC fee from$1750/unit to$2000/unit