4.4 ERMU 12-12-2023 - Laserfiche WebLink

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Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Mark Hanson — General Manager MEETING DATE: AGENDA ITEM NUMBER: December 12, 2023 4.4 SUBJECT: Competitive Rates Analysis ACTION REQUESTED: Approve the Competitive Rates Analysis BACKGROUND: The Commission adopted the Competitive Rates Policy in December 2022. Per this policy, the general manager will provide an annual competitive rate analysis report to the Commission prior to rate setting for the following budget year. DISCUSSION: The report includes the following information: 1. Electric a. Report the blended $/kWh effective electric rate data (total revenue collected/total kWh sold) as available through the U.S. Department of Energy, Energy Information Administration, Form EIA-861. The report shall include ten-year trend data graphing ERMU electric rates compared to neighboring competitor electric utilities. Recognizing that the data release lags one year, the intent of the report shall be to provide graphical trend data for long-term planning rather than short term comparisons. The report shall be provided to the Commission annually prior to rate setting for the following budget year. b. Report customer class rate analysis comparing ERMU electric rates to neighboring competitor electric utilities. The report shall include ten-year trend data graphing ERMU electric rates compared to neighboring competitor electric utilities. The intent of this is to show, from a customer perspective, how rate competitiveness would be perceived currently. The report shall include all rate classes or other unique customer types within rate classes. 2. Water a. Report tiered water rate comparisons, as available locally sourced. The report shall include data graphing ERMU water rates compared to neighboring water utilities. The intent of the report shall be to provide trend data for Page Iof2 59