2.2 ERMUSR 01-10-2023 - Laserfiche WebLink

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4.4 Margins Policy Ms. Slominski presented proposed revisions to the Margins policy which call for the inclusion of depreciation in the calculation of margins and a margin percent range of 1.5 - 3.5% when there is not an amount already set by bond convenance. There was discussion about the variables in bond requirements. Chair Dietz expressed his agreement with including depreciation in the calculation as that money will be needed for capital projects. Moved by Commissioner Westgaard and seconded by Commissioner Stewart to approve the revised ERMU Commission Policy G.5a Margins. Motion carried 5-0 4.5 Competitive Rates Policy Ms. Slominski provided background on the creation of the Competitive Rates policy explaining that the goal is to provide the Commission with valuable information about how ERMU's rates compare to similar organizations when setting the budget. Chair Dietz noted that ERMU's commercial retail rates are higher than most. Ms. Slominski responded that those rates support a robust distribution system. Chair Dietz noted ERMU's water rates are lower than most. There was discussion. Chair Dietz shared his opinion that it is important that water rates in tier 1 are comparable to others. There was discussion. Chair Dietz asked if the future implementation of Advanced Metering Infrastructure would have any effect on helping customers remain in tier 1 for water usage. Mr. Tietz responded that more information will become available to the customers so they can better conserve and make informed decision. Commissioner Stewart noted there was no data for Chaska on page 70. Ms. Slominski explained that Chaska's commercial information was not available, and they should have been removed from the key. Moved by Commissioner Bell and seconded by Commissioner Westgaard to approve proposed ERMU Commission Policy G.5b — Competitive Rates Motion carried 5-0 Elk River Municipal Utilities Commission Meeting Minutes December 13, 2022 Page 4 W