2.2 ERMUSR 02-13-2024 - Laserfiche WebLink

Home Browse Search

Ms. Karpinski explained that she and Mr. Hanson had opted not to charge a Power Cost Adjustment (PCA) to customers in December to stay in line with ERMU's Margins policy. She continued that ERMU was charged $531,000 in adjustments for December by its power provider, Minnesota Municipal Power Agency (MMPA). It was explained that approximately half of the PCA is built into ERMU's rates. Moved by Commissioner Stewart and seconded by Commissioner Westgaard to receive the November 2023 Financial Report. Motion carried 4-0. 5.2 ERMU Clothing Allowance Update Mr. Hanson presented the ERMU clothing allowance update following the Commission recommendation at the November meeting that staff review potentially increasing the annual $75 clothing allowance for non -field staff and the Commission. He added that $75 has been the allowed amount since August of 2014. Mr. Hanson explained that upon reviewing multiple years of orders, the average expense paid by staff beyond the allowance was about $22.50. Mr. Hanson went on to clarify that the average was brought down by the fact that some staff do not spend more than the allowance or barely exceed it, while people buying an additional item typically spend $35-$40, which is how staff selected the proposed total of $120. Chair Dietz asked if the office staff have uniforms. Staff responded that they do not. Moved by Commissioner Bell and seconded by Commissioner Westgaard to approve the new clothing allowance amount of $120. Motion carried 4-0. 5.3 Transmission Investment Opportunity Mr. Hanson presented an investment opportunity with the transmission project that ERMU participates in through a partnership with Central Minnesota Power Agency/Services (CMPAS). In August 2023, the CapX2020 Brookings Owners submitted applications to the Minnesota Public Utilities Commission to install separate 345 kV circuits on double -circuit - capable structures. In anticipation of cash requirements related to projects, CMPAS would like to have commitments from current participants totaling $2 million in additional funds. As ERMU is an 18.89 percent owner of the project, its portion would be about $378,000. Mr. Hanson explained that CMPAS does not require funds to be deposited in the CMPAS account immediately, but to be readily available and transferred to CMPAS within 3 to 5 days upon request. Mr. Hanson also explained that he is looking for the Commission to provide a cap on the amount of money they are willing to make available for the investment as some of participants may not wish to pursue this opportunity which would increase the shares for the remaining participants. Mr. Hanson recommended the Commission consider a cap of $500,000. Elk River Municipal Utilities Commission Meeting Minutes January 9, 2024 Page 3 MR