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Moved by Commissioner Stewart and seconded by Commissioner Nadeauto approve <br />the unrestricted reserve balances above target levels for the Electric Utility fund be <br />designated for electric service territory transfer costs, capital infrastructure costs, and <br />Energy Adjustment Clause (EAC) to be capped at $500,000; and for the Water Utility <br />fund to be designated for future capital infrastructure costs. Motion carried 5-0. <br /> <br />1 Utilities Performance Incentive Compensation Distribution <br />4.3 202 <br />Ms. Karpinskipresented her memo on the 2021 Utilities Performance Incentive <br />Compensation Distribution. Ms. Karpinski noted that staff met all metrics in 2021 except <br />for one, achieving a Customer Average Interruption Duration Index below 120 minutes. <br />Per the policy, this warrantsa multiplierof 95% making qualifying employees eligible for a <br />1.9% distribution. <br /> <br />Chair Dietz noted improvement in the Employee Turnover category. <br /> <br />Moved by Commissioner Bell and seconded by Commissioner Westgaard to award the <br />Performance Metrics and Compensation Distribution of 1.9% to qualifying employees <br />per the terms of the policy. Motion carried 5-0. <br /> <br />5.0 BUSINESS ACTION <br />5.1 Financial Report – February 2022 <br />Ms. Karpinski presented the Financial Report for February 2022. <br /> <br />Ms. Karpinski informed the Commission that ERMU had passed through a six-mill power <br />cost adjustment in January and February to customers due to the increase in the Energy <br />Adjustment Clause from the power provider. She added that it will be increased to eight <br />mills in April to recover costs from 2021 and that staff will have to look at covering costs <br />for 2022. <br /> <br />Chair Dietz had a clarifying question. Staff responded. <br /> <br />Ms. Karpinski provided the Commission with information they had requested at the <br />previous meeting, explaining that charges averaged out for residential customersin 2022 <br />showeda 5% increase from the Energy Adjustment Clause, along with the 3% rate <br />increaseapproved by the Commission. <br />Chair Dietz askedwhy the interest and dividend incomeshowed anegativenumber. Staff <br />explained that this was due to a market value decrease. <br />Chair Dietz asked about the increase to Administrativeexpensesin the water department. <br />Ms. Karpinski explained that now that thewater department is fully staffed thereis more <br />Elk River Municipal Utilities Commission Meeting Minutes <br />April 12, 2022 <br />Page 4 <br /> <br />39 <br />