Laserfiche WebLink
______________________________________________________________________________ <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 9, 2025 <br />AGENDA ITEM NUMBER: <br />5.1 <br />SUBJECT: <br />Electric and Water Cost of Service and Rate Design Study <br />ACTION REQUESTED: <br />None <br /> <br />BACKGROUND: <br />ERMU staff have been working with Dave Berg Consulting, LLC to complete electric and water <br />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 />DISCUSSION: <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 Tax payments to the City, and an expected 3% increase in purchased power <br />costs. Mr. Berg will also review the findings and recommendations of the final cost of service <br />reports for electric and water. <br /> <br />Staff request feedback on Mr. Berg’s presentation in order to prepare the 2026 Annual Business <br />Plan for final approval at the special meeting occurring at 3:30 p.m. on December 18 in the <br />Utilities office. <br /> <br /> <br />ATTACHMENTS: <br />• Elk River Draft Final Electric Report <br />• Elk River Draft Final Water Report <br /> <br /> <br />52