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______________________________________________________________________________ <br /> <br />Page 1 of 1 <br /> <br /> <br /> <br /> <br /> <br />UTILITIES COMMISSION MEETING <br /> <br />TO: <br />ERMU Commission <br />FROM: <br />Mark Hanson - General Manager <br />MEETING DATE: <br />December 18, 2025 <br />AGENDA ITEM NUMBER: <br />2.1 <br />SUBJECT: <br />Receive Final Electric and Water Cost of Service and Rate Design Studies <br />ACTION REQUESTED: <br />Receive Final Cost of Service and Rate Design Studies <br /> <br />BACKGROUND: <br />ERMU staff have been working with Dave Berg Consulting, LLC to complete the Electric and <br />Water Cost of Service and Rate Design Studies. The purpose of this work is to evaluate potential <br />updates to ERMU’s electric and water retail rates, as well as applicable utility fees. Staff <br />evaluated changes in operating conditions, including but not limited to monthly fixed costs, <br />additional service fees, potential changes to the financial reserve policy, and new data from the <br />Advance Metering Infrastructure project related to electric and water usage. <br /> <br />At the November 2025 meeting, the Commission instructed Mr. Berg to return in December <br />with electric and water rate projections that account for higher reserve balances, increased <br />Payment in Lieu of Taxes payments to the City, and an expected 3% increase in purchased <br />power costs. Mr. Berg reviewed the findings and recommendations of the final cost of service <br />reports for electric and water at the December 9, 2025, commission meeting. <br /> <br />DISCUSSION: <br />Dave Berg has submitted a final draft of the Electric Cost of Service and Rate Study Studies. The <br />attached December 10 draft incorporates minor typo corrections to the electric report <br />identified by staff. The previously submitted December 9 draft of the Water Cost of Service and <br />Rate Study remains unchanged. <br /> <br />Staff request the Commission receive and file the final drafts of the Cost of Service and Rate <br />Studies. <br /> <br /> <br />ATTACHMENTS: <br />• ERMU Draft Final Electric Study, December 10 <br />• ERMU Draft Final Water Study, December 9 <br /> <br />