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��i <br />Elk River , <br />Municipal Utilities UTILITIES COMMISSION MEETING <br />TO: <br />FROM: <br />ERMU Commission <br />Tony Mauren — Governance & Communications Manager <br />MEETING DATE: <br />AGENDA ITEM NUMBER: <br />September 9, 2025 <br />4.2 <br />SUBJECT: <br />Commission Policy Review — G.4j — Cost Allocation and Recovery <br />ACTION REQUESTED: <br />Adopt updated policy language <br />BACKGROUND/DISCUSSION: <br />This month commissioners are also reviewing policy G.4j — Cost Allocation and Recovery. With <br />this policy, the Commission sets forth its expectations for the General Manager concerning cost <br />allocation and recovery of costs for ERMU's core customer services. <br />The provided update helps ERMU align with leading practices, per the American Public Power <br />Association, in conducting a full cost -of -service study every five years instead of every ten as <br />previously listed. <br />ERMU last did a study in 2020 and is preparing for a study now in 2025. <br />/e'l■f-ITGU PilALIII& l <br />• Updated ERMU Policy— G.4j —Cost Allocation and Recovery. <br />Page 1 of 1 <br />42 <br />