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ERMU CommissionPolicyG.4g1Performance Metrics and Incentive Compensation <br />______________________________________________________________________________ <br />2.0UTILITIES PERFORMANCE METRICS SCORE CARD <br />As reflected on the Score Card, the Performance Metrics are divided into the following three <br />categories: Safety, Reliability and Quality of Utility Services; WorkforceDevelopment; and <br />Financial Goals. These categories are used to characterize the overall strategic goals and mission <br />of ERMU. <br />Under the Performance Metrics, these three main categories are then divided into various <br />weighted factors, or sub-categories. These sub-categories, their percentage weight, and the goal <br />or target for each, shall be established by the Utilities Commission annually.The Performance <br />Metrics as adopted are reflected in the attached Score Card.As discussed above, the Performance <br />Metrics and thus the Score Card are subject to modification and adoption by the Commission <br />annually, which will normally occur during the U <br />3.0UTILITIES PERFORMANCE INCENTIVE COMPENSATION DISTRIBUTION <br />CRITERIA <br />Under the UMPIC a Performance-Based Compensation Incentive, if earned, will be distributed <br />to Qualifying Employees annually. The total amount available to beearned by Utilities <br />employees as a Performance Based Compensation Incentive each year will be an amount up to <br />Period. <br />The measuring period used to calculate how much, if any, of the Performance-Based <br />Compensation Incentive the Utilities employees have earned will be the calendar year (the <br />After the Measurement Period is complete and the Commission has <br />received its audit in the spring of the year following the Measurement Period, the Performance <br />Metrics will be applied to determine whether the Performance-Based Compensation Incentive <br />has been earned for the Measurement Period. In doing so, the performance of the Utilities in each <br />sub-categorywill be reviewed. If the sub-category performance meets or exceeds the established <br />goal, the sub-category will be scored with the designated percentage that will contribute to a total <br />Performance Metrics Multiplier to be used as a factor in calculating the distribution earned, if <br />The Multiplier has a maximum factoring effect <br />of 100%. The Multiplier is used to determine how much, if any, of the amount established by the <br />Commission for the UMPIC Performance-Based Compensation Incentive has been earned in the <br />Measurement Period. (For example if the Multiplier equals 100%, the distribution would equal <br />2%. If the Multiplier equals 75%, the distribution would equal 1.5%.) In other words, the <br />amount establishedby the Commission may be earned on an annual basis by the group of <br />Qualifying Employees (as defined below in Section 4.0) in whole, in part, or not at all. <br />After the Multiplier is calculated on the Score Card, the Performance Based Compensation <br />Incentive earned, if any, will be distributed to Qualifying Employees. The total amount to be <br />distributed as the Performance Based Compensation Incentive will be the product of: a) the <br />mployees during the <br />Measurement Period. <br />______________________________________________________________________________ <br />Page 2of3 <br />131 <br />