Laserfiche WebLink
5.0 BUSINESS ACTION <br />5.1 Financial Report —September 2022 <br />Ms. Karpinski presented the September 2022 financial report highlighting electric usage <br />was up 1% while YTD it is down 1.5%. She added water usage was down 1% for the month <br />and 10% YTD. <br />Ms. Karpinski added that forecasts show electric budgets in a net positive position in <br />October and a $700,000 net profit position by the end of the year. <br />Ms. Karpinski went on to highlight that the YTD variance for the Energy Adjustment Clause <br />was $3.4 million and that $500,000 was absorbed by ERMU. She added that removing the <br />EAC charges would put Purchased Power in line with budget. <br />Ms. Karpinski informed the Commission that the rates Minnesota Municipal Power <br />Agency (MMPA) had presented to its member communities were initially incorrect but <br />that the actual numbers had been received. <br />Chair Dietz asked why the water connection fees revenues are up for the year. <br />Mr. Ninow explained there had been multiple large buildings connected to the system this <br />year noting two large apartment buildings at Highways 10 and 169. <br />Moved by Commissioner Bell and seconded by Commissioner Stewart to receive the <br />September 2022 Financial Report. Motion carried 5-0. <br />5.2 2023 Annual Business Plan: Rates and Review, Stakeholder Communication Plan <br />Ms. Karpinski presented her memo and shared that MMPA was planning to implement a 5% <br />rate increase with a 1.6% increase in the actual 2022 EAC. <br />Ms. Karpinski shared that staff is proposing a 5% rate increase for electric customers in 2023 <br />with Power Cost Adjustments (PCA) throughout the year. <br />She continued that for water, staff is proposing a 2% increase. <br />There was discussion about potential rate increases for comparable/neighboring utilities. <br />Ms. Karpinski proposed that the Commission consider absorbing $500,000 in PCA charges <br />later in the year and base the decision to do so on the financial standing at that time. She <br />noted that this threshold has been met the last two years, meaning that ERMU absorbed <br />$1,000,000. <br />Elk River Municipal Utilities Commission Meeting Minutes <br />November 8, 2022 <br />Page 3 <br />30 <br />