Laserfiche WebLink
Projected Operating Results – Existing Rates <br />- 5 - <br />Depreciation <br />ERMU has annual depreciation costs based on its system investments. Depreciation <br />during the Study Period is based on budgeted ERMU amounts and future capital <br />improvements. Depreciation is a funded non-cash expense that generates monies <br />available for annual capital improvements and reserves. <br />Non-operating Revenue (Expenses) <br />ERMU’s non-operating revenue is primarily associated with investment income and <br />miscellaneous revenues. Non-operating expenses are related to interest expense for <br />existing debt. <br />City Transfer <br />ERMU makes an annual operational transfer to the City’s general fund. The transfer is <br />assumed to be 5% of electric retail sales revenue for sales in Elk River only. <br />Capital Improvements <br />ERMU makes annual normal capital investments in its electric system. Annual electric <br />capital improvements for the Study Period, as budgeted by ERMU, are shown in Table 2- <br />3 below. <br />Table 2-3 <br />Capital Improvements <br />Capital Item 2025 2026 2027 2028 2029 <br />Electric Capital $7,455,754 $8,047,103 $4,628,954 $4,542,896 $4,381,166 <br /> <br />