5.1. ERMUSR 04-13-2010 - Laserfiche WebLink

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Management's T~iscussion and Analysis -Continued April d, 2010 water and Electric Rates - ~antinued water -The Utilities' latest increase in residential and commercial rates was effective January 2009, The rates did not change for 2014, pending a rate study review in the second quarter. The monthly base charge for residential is $7.50 per month. Zn addition to the base charge, the Utilities currently charges its residential customers $1,50 per 1,000 gallons up to 9,000 gallons, $3.50 per 1,000 gallons between 9,000 gallons and 15,000 gallons, and $4.00 per 1,000 gallons for usage above 15,000 gallons. Commercial customer's base chal•ges are based upon meter size, from $9,00 to $95,00. An i~•rigation meter is X40.00 for every month the meter is utilized, There is also a charge per thousand gallons, the same tiers as the residential rate, except the change from the lower rate to the higher rate is calculated based an previous consumption. Certain other rates maybe offered for conservation incentive purposes. The Utilities' offer a Senior Citizen rate as well. The Utilities requires payment of all utility bills to be paid by the due date stated on the monthly bill. A ten percent penalty is assessed for payments not received by the due date. The Utility may discontinue service of a customer not complying with the disconnect policy of the Utility after receiving a written disconnect notice. Residential and Commercialllndustrialsingle phase Customers that have their service discontinued will be charged a minimum of $54,00 to have their service reco~~nected. Commerciallindustrialtbree phase customers that have thell• service discontinued will be charged a minimum of $150.04 to have their service reconnected. Effective January 1, 2010, there will be no reconnections after 3;30pm. Additionally, payments far recon~~ection will no longer be accepted at the property site; customers must come into the office between the hours of B,OOam and 3,30pm to make the payment before service will be restored. The Utilities abides by the Cold Weather Rules, Deposit Policy fn Zo07 the Utilities sta~~ted collecting social security numbers fi~om new accounts and also implemented a new deposit policy as a proactive measure to ~y and reduce uncollectable accounts, A number of years ago deposits were collected fi~om all new accounts but it became very difficult to manage and so was discontinued. In implementing the new policy it was decided to collect deposits fi•om new accounts that did not supply a social security number ar were identified as a credit risk, To determine potential credit risk an assessment tool called "Cnline Utility Exchange" was implemented. This tool was recommended by the APPA ~Arnerican Public Power Association.} The amount of the deposit required will depend on the risk identified with the customer. For residential customers, if there is a 68 percent or higlxer probability of non default and no negative history ono disconnection far non-payment or late payments two or mare times within 12 months) there is no deposit required. if there is a lower than 68 percent probability of non default, a deposit of 2 tunes the estimated average monthly bill will be required before utility service will be extended. For commercial and industrial customers, a service agreement would need to be signed that identifies the guarantor of theix business and the guarantor's social security number. A deposit of 2 times the estimated monthly bill will be required. The deposit shall be in the form of a cas1~ deposit, personal payment guarantee, or an irrevocable letter of credit, The irrevocable letter of credit will be renewed as required and failure to do so will result in a charge equal to the amount of the letter of credit applied to the monthly utility bill, Effective March 9, 2010, deposits will be retained until the account is closed. The deposit will be retu~•ned to the customer within 45 days of termination of service, provided that the customer has paid in full all amounts due on the account. The appropriate interest will be applied to the account per state statutes. -l3_