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Proposed Rates
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<br />Table 4-3
<br />Projected Cash Reserves
<br />Proposed Rates
<br />Year 2025 2026 2027 2028 2029
<br />Beginning Balance $13,800,000 $12,028,988 $13,075,198 $13,228,547
<br />Plus Change in Net Position 2,850,230 3,265,675 3,443,620 3,382,442
<br />Plus Depreciation 3,533,136 3,801,373 3,955,671 4,107,101
<br />Plus Interfund Borrowing 1,400,000 - (1,400,000) -
<br />Less Capital Improvements (8,047,103) (4,628,954) (4,542,896) (4,381,166)
<br />Less Loss of Revenue Pmts (472,275) (316,884) (198,046) (100,816)
<br />Less Debt Principal (1,035,000) (1,075,000) (1,105,000) (1,140,000)
<br />Ending Balance(1) $13,800,000 $12,028,988 $13,075,198 $13,228,547 $15,096,108
<br />Reserve Goal $18,392,897 $18,432,831 $18,623,699 $18,769,766 $18,924,065
<br />Reserves as % of Goal 75% 65% 70% 70% 80%
<br />(1) 2025 EOY reserve balance estimated by ERMU staff based on 2025 YTD actual results
<br />
<br />Competitive Analysis
<br />ERMU is interested in how its rates compare to neighboring utilities. Table 4-4 below
<br />shows monthly electric bills for various typical customers in the residential and
<br />commercial classes. Bills are shown based on existing ERMU rates, proposed ERMU
<br />rates in 2026 and the rates for Buffalo, Shakopee, Wright Hennepin Cooperative and
<br />Xcel Energy. Buffalo and Shakopee’s rates are based on their new 2026 rates. An
<br />important consideration in this table is what may happen to Wright Hennepin and Xcel
<br />rates in the future. There is no information available regarding Wright Hennepin rate
<br />plans. The Xcel Energy charges include Xcel’s 7.14% interim rate increase but the final
<br />determination on Xcel’s last rate case has not been determined by the MPUC yet.
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