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<br /> <br />C:\Users\tadams\Desktop\Commission Council Joint 2019 Meeting\Joint Meeitng Working Documents\Joint Meeting FINAL Documents\2019- <br />11-18 Joint Mtg - 3.2 ERMU Pilot Policy Memo.docx <br />In October, 2018, ERMU transitioned wholesale power providers from Great River Energy (GRE) to <br />Minnesota Municipal Power Agency (MMPA). The change allowed ERMU to lower electric rates by 5% <br />in 2019. And, ERMU is in a position to hold the line and have no electric rate increase for 2020. <br /> <br />The Commission determined that ERMU was in an improved financial position with the electric service <br />territory growth and the wholesale power cost reductions compared to when the PILOT policy had been <br />revised in 2016. And with consideration of all of those factors, the Commission determined that those <br />electric service territory transfer agreement PILOT policy exceptions should be lifted and the savings that <br />ERMU has experienced be shared with the city. <br /> <br />Financial Impact <br />The estimated increase in PILOT transfer from ERMU to the city for the 2020 budget year would be <br />$169,000. The estimated total increase in transfers over the 15 year LOR payment schedule period would <br />be $1,500,000. <br /> <br />Attachments <br /> ERMU Commission Policy G.2a Commission – City Council Relationship and Roles <br /> ERMU Commission Policy G.2a1 Payment in Lieu of Taxes and Other Donations to the City of <br />Elk River <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />