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Mr. Hanson noted ERMU commercial electric rates are holding steady around the 75th <br />percentile. <br />Chair Dietz asked if customers have commented about ERMU commercial rates as <br />compared to other utilities. Mr. Hanson replied he hasn't received any comments but <br />plans to talk with City staff to discuss if they have received feedback. <br />Chair Dietz asked Mr. Hanson if the data is simply informational or is it prompting a <br />change. Mr. Hanson replied he is encouraged by the data and that ERMU is currently in a <br />good position. <br />Mr. Hanson reviewed industrial rates noting ERMU is around the 75th percentile. He <br />added that in comparison with its peer group, ERMU is trending towards mid -range in this <br />category. <br />Mr. Hanson presented water rate information and noted ERMU water is doing well based <br />on the tiered rate structure which incentivizes conservation. <br />Chair Dietz asked if the tiered rate structure started as a state mandate. Mr. Hanson could <br />not confirm this but offered it is highly encouraged as part of the Wellhead Protection <br />program. Mr. Ninow also confirmed the Department of Natural Resources highly <br />encourages a tiered rate structure. <br />Mr. Hanson stated ERMU is very efficient in regard to both residential and commercial <br />water rates. <br />Chair Dietz asked if ERMU's comparably low water rates indicate a need to raise them. <br />Mr. Hanson replied ERMU should be proud of our efficiency and noted the recommended <br />two percent increase is to cover large capital expenses to come but will keep ERMU within <br />its margin policy. <br />Moved by Commissioner Stewart and seconded by Commissioner Zerwas to approve the <br />Competitive Rates Analysis. Motion carried 5-0 <br />4.5 Energy Management Programs <br />Ms. Youngs presented ERMU's energy management programs noting that staff is <br />requesting the extension of the sunset date from December 31, 2023, to December 31, <br />2025. She explained that this will allow time for the installation of all Advanced Metering <br />Infrastructure (AMI) meters, a review of customer usage, and for a rate study to be <br />completed, allowing for the implementation of new energy management programs. Ms. <br />Youngs also noted that ERMU failed to communicate the sunset date with participating <br />customers at the end of 2022. <br />Elk River Municipal Utilities Commission Meeting Minutes <br />December 12, 2023 <br />Page 4 <br />