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<br />______________________________________________________________________________ <br /> <br />Page 1 of 2 <br /> <br /> <br /> <br /> <br />COMMISSION POLICY <br /> <br />Section: Category: <br />Governance Delegation to Management Policies <br />Policy Reference: Policy Title: <br />G.4j Cost Allocation and Recovery <br /> <br />PURPOSE: <br /> <br />With this policy, the Commission sets forth its expectations for the General Manager <br />concerning cost allocation and recovery of costs for ERMU’s core customer services (See <br />Core Customer Services Policy). <br /> <br />POLICY: <br /> <br />The General Manager shall operate ERMU in accordance with the Financial Plan (See Financial <br />Planning and Budgeting Policy). <br /> <br />Consistent with this general statement, the General Manager shall: <br /> <br />1. Annually report to the Commission on the performance and adequacy of ERMU’s rates, fees, <br />and charges for utility services with respect to revenue requirements, provide an updated <br />projection of revenue and revenue requirements in the Financial Plan (See Financial <br />Planning and Budgeting Policy), and recommend an appropriate plan for rate adjustments as <br />needed. <br /> <br />2. Provide, at least once every ten (10) years or sooner at Management or Commission <br />discretion, and in conjunction with development of the Financial Plan, a full cost-of-service <br />rate study for each of ERMU’s core customer services which fairly allocates costs among <br />customer classes, provides for sufficient revenues, demonstrates that recommended rates are <br />just and reasonable, and provides for competitive positioning with nearby service providers. <br /> <br />3. Recommend any new or adjusted rates, fees, or charges to the Commission for consideration <br />and approval. <br /> <br />4. Implement any Commission-approved rates, fees, charges (or changes to same), provide <br />adequate advance public notice and information to affected customers. <br /> <br />167