Laserfiche WebLink
~/ <br />Elk River <br />Municipal Utilities <br />13069 Orono Parkway • P.O. Box 430 <br />Elk River, MN 55330-0430 <br />November 29, 2007 <br />1'0: Elk River Municipal Utilities Commission <br />Jerry Takle <br />Jerry Gumphrey <br />Jim Tralle <br />From: Bryan Adams <br />Subject: Utility Rate Increases <br />Phone: 763.441.2020 <br />Fax: 763.441.8099 <br />At the November 13, 2007 Elk River Municipal Utilities commission meeting we adopted the <br />2008 budget. Great River Energy did adopt the wholesale electric rate as presented at our <br />November commission meeting. <br />Attached is the following information for your review. <br />1) Proposed Elk River Municipal Utilities 2008 fee and rate schedule. The items <br />highlighted in yellow reflect no change from 2007. <br />2) Marked up electric and water tariff sheets. <br />3) Electric sales projections -notice the revenue difference from the residential, commercial <br />and industrial customer classes. <br />4) Water sales projections. <br />5) Electric 2007 rate comparison. This survey reflects comparisons from Elk River <br />Municipal Utilities, Excel, Connexus, Wright/Hennepin and the City of Anoka. <br />6) Water 2007 rates survey from AE2S (unfortunately this survey uses 7,500 gal/mo. as a <br />base and our step increase is at 8,000 gal/mo. and is a large step). <br />7) Proposed letter to security customers. <br />The proposed rate and fee changes follow through on the large revenue assumptions contained in <br />the budget. I offer the following comments on the above information. <br />a) The street light and security light prices are increased to reflect increased material costs. <br />b) Electric rate increase is 7.2% and reflects an approximate $1,375,700 or our wholesale <br />dollar amount rate increase. As seen from the 2007 electric rate comparison, the <br />residential rate is very comparable to the competition. The commercial is much lower <br />than the competition. This rate could be increased further but due to the low quantities, <br />will have little revenue impact. The industrial rate still remains 5% to 10% higher than <br />