12-14-2021 ERMU MIN - Laserfiche WebLink

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Ms. Slominski presented her memo bringing the 2022 Performance Metrics and Incentive Compensation scorecard to the Commission for review and approval. She went on to mention that if there were any desired changes, now would be the time to make them. Ms. Slominski also explained that with the Clean Energy Choice Program Participation sub- category ERMU has exceeded the goal in the past but would like another year to evaluate the appropriate amount to increase the enrollment goal. Commissioner Stewart asked if the enrollment numbers are net totals. Ms. Slominski responded that the totals reflect just the additions to the program. Commissioner Stewart inquired if it would be best to use a net total if the goal is looking to track the growth of the program. There was discussion. Chair Dietz asked how staff has control over this goal. Ms. Canterbury provided details on how staff promotes the program to customers. Ms. Slominski confirmed that Minnesota Municipal Power Agency does pay for printed materials promoting the program when Commissioner Stewart asked.There was consensus among the Commission that the goal to increase enrollment by 15 should be specified as a net increase. Ms. Slominski also highlighted the Water Loss sub-category, explaining that ERMU had not met that goal for two years and that staff had identified some focus points that could improve tracking. There was discussion. Moved by Commissioner Stewart and seconded by Commissioner Bell to approve the Performance Metrics and Incentive Compensation Policy Score Card for 2022 with the specification that the Clean Energy Choice Program Participation sub-category track a net increase to the program. Motion carried 4-0. 5.0 BUSINESS ACTION 5.1 Financial Report—October 2021 Ms. Karpinski presented her memo on the October 2021 financials. Chair Dietz shared that his calculations showed that all other expenses are up 2%while Purchased Power is up 20% and he wondered if there was something that could have been done in the budgeting process to prepare for this increase. Ms. Karpinski highlighted the fact that the Energy Adjustment Clause (EAC) from Minnesota Municipal Power Agency (MMPA) is $2 million higher than the prior year which is the biggest factor along with increased usage. Ms. Slominski added that MMPA's budget reflects large, unexpected increases that necessitated the EAC. Chair Dietz expressed his concern that there would be a need to utilize reserve funds given expenses planned for 2022. Ms. Slominski noted there would likely be a Power Cost Adjustment passed on to customers for most of 2022. There was discussion. Elk River Municipal Utilities Commission Meeting Minutes December 14, 2021 Page 3