11-09-2021 ERMU MIN - Laserfiche WebLink

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Chair Dietz asked for clarification on the energy adjustment clause budget amount. There was discussion about the fact that ERMU absorbs $500,000 of additional expense beyond the amount that is budgeted and built into the rates. Moved by Commissioner Westgaard and seconded by Commissioner Stewart to receive the September 2021 Financial Report. Motion carried 5-0. 5.2 Annual Business Plan: Rates and Review, Stakeholder Communication Plan Ms. Karpinski presented her memo on the Annual Business Plan, highlighting a proposed 5% rate increase for electric rates, due mostly to wholesale power costs. The memo also proposes a 2.5% increase in water rates. Chair Dietz shared his opinion that there needs to be clear communication to customers that, along with the rate increase, they should expect power cost adjustment charges in 2022. Chair Dietz went on to share his belief that transparency is important and that it would be deceptive to customers to present an artificially low rate increase with the intent to make up the difference through large monthly power cost adjustments. Ms. Slominski shared that the numbers presented are based on the wholesale power provider's best estimate and that there has been a substantial increase in costs since the summer. She added that the utilities industry has not been unaffected by increasing inflation.There was discussion. Commissioner Stewart commended Ms. Slominski for utilizing her finance background in asking good questions to the wholesale power provider at its monthly board meeting. Commissioner Stewart explained that it was Ms. Slominski who suggested the provider consider reducing its margins to help curb the increase which the provider ultimately did. Chair Dietz asked if the Commission could receive an email with the communications that will explain the increase to customers before they are distributed. Attorney Beck advised that any comments about the communication be directed to staff and not to other commissioners to be in accordance with Open Meeting Law. 5.3 2022 Utilities Fee Schedule Ms. Canterbury presented the proposed 2022 Utilities Fee Schedule, highlighting changes in electric fees from the previous year, which are: increasing the Minimum Temporary Electric Service Fee from $150 to $220 when an existing transformer is present and increasing it from $500 to $850 when a transformer is not present. Chair Dietz asked if these new prices were based on labor costs. Mr. Geiser confirmed that they were and that these fee levels have been in place for several years and were due for an update. The proposed fees also include the addition of a $20 Meter Installation Fee per individually metered apartment unit. Mr. Elk River Municipal Utilities Commission Meeting Minutes November 9, 2021 Page 4