5.4. ERMUSR 12-14-2010Elk River
Municipal Utilities
13069 Orono Parkway • P.O. Box 430
Elk River, MN 55330-0430
UTILITIES COMMISSION MEETING
Phone: 763.441.2020
Fax: 763.441.5099
TO: FROM:
Elk River Municipal Utilities Commission Troy Adams, P.E. -Director of Operations
John Dietz, Chair
Jerry Gumphrey, Vice Chair
D 1 Thom son, Trustee
MEETING DATE: AGENDA ITEM NUMBER:
December 14, 2010 5.4
SUBJECT:
2011 Bud et, Rates, and Fees
DISCUSSION:
Electric Department
The overall approach for this year's budget remains the same - to control costs and pass on the
wholesale power cost rate increases. The blended wholesale power cost increase is approximately 2%.
There was some shifting in Great River Energy's (GRE) rate design to recover less revenue from
demand and more from energy and transmission. It should also be noted that GRE went to
considerable lengths to reduce their rate increase from the preliminary numbers. This is good for
ERMU this yeaz, but the forecast for GRE's 2012 rates are not as favorable. The proposed 2011 rates
aze:
Residential
Basic Monthly Charge $9.00
Summer Energy Chazge (May-Sep) $0.1165/kWh
Winter Energy Chazge (Oct-Apr) $0.1040/kWh
(This results in an increase for a typical residential customer of 2.1 %)
Non-Demand Commercial
Basic Monthly Charge $16.00
Summer Energy Charge (May-Sep) $0.1120/kWh
Winter Energy Charge (Oct-Apr) $0.0929/kWh
(This results in an increase for a typical non-demand commercial customer of 2.1 %)
Demand Commercial
Basic Monthly Charge $50.00
Summer Demand Charge (May-Sep) $15.89/kW
Winter Demand Chazge (Oct-Apr) $11.27/kW
Energy Charge $0.0558/kWh
(This results in an increase for a typical demand commercial customer of 1.8%)
ELK RIVER MUNICIPAL UTILITIES
SUMMARY OF YEAR 2011
BUDGETS
ELECTRIC BUDGET SUMMARY 2011
ELECTRIC REVENUE $ 28,254,719
ELECTRIC EXPENDITURES 27,917,903
ELECTRIC NET FOR CAPITAL 336,816 1.19%
DEBT RETIREMENT 532,500
PROMISSORY NOTE TO COUNTY 182,438
LESS DEBT PRINCIPAL PMTS (378,122)
CAPITAL EQUIPMENT/CONSTRUCTION 1,946,600
BONDING
NET (2,324,722)
DEPRECIATION 2,340,000
NET TO RESERVES 15,278
WATER BUDGET SUMMARY 2011
WATER REVENUE $ 2,094,800
WATER EXPENDITURES 2,292,980
WATER NET FOR CAPITAL (198,180)
DEBT RETIREMENT 477,500
GROSS (675,680)
CAPITAL PROJECTS 808,400
BONDING
NET (1,484,080)
DEPRECIATION 1,019,700
NET TO RESERVES (464,380)
BUDGET SUMMARY201f
2017
ESTIMATED BUDGET
ACCOUNT# DESCRIPTION 2007 2008 2009 2070 2017
ACTUAL ACTUAL BUDGET BUDGET BUDGET
TOTAL RESIpENTIAL ],4f ),288 ;934,]68 8,488.154 8.920, ]B1 8,/53,485
F,LECTRIC TOTAL NON-DEMAND 1,9]6,224 2102 H2 2350,1]3 2,101.105 2,420,]12
TOTAL DEMAND 8,5]2.019 19,888,486 11,83$5]2 12,288,862 f/,56$4C0
TOTAL SECURITY LTS 01,98 d>,dd6 48,000 /9,000 50,000
TOTAL PUBLIC STMWV LIGHTING 21],951 238,823 242,000 250,000 255,000
TOTAL SALES 18,188,155 21,308,00/ 22,]41,898 23,808,548 2B, )fid,SH]
REVENUE INCREASE FOR CI P
RATE INCREASE
TOTAL SALES WITH Civ/RATE INCREASE iB,iBB,/35 21,308,/11 22,)8,899 23,619,318 26,N1,/78
TOTAL OTHER 2,502,]02 2,115788 1,8]8,089 174],644 1,80],240
TOTAL REVENUE 20,691,157 23,525,232 24,619,988 25,397,192 28,254,719
o8«oa696 aQ-avail (ioe,ess) lf0e,4t ])
ACCOUN7# DESCRIPTION 2007 2008 2009 2010 2011
ACTUAL ACTUAL BUDGET BUDGET BUDGET
OPERATING/MTCE _
PURCHASEp POWER 12,1]6,034 14, ]TB,Tl9 18,0]9,258 1],928,2]1 18,))1,038
TOTAL 12.928.103 15.fi5B,935 16,988,508 1],884,885 20708,580
DISTRIBUTION
TOTAL 189,569 236,252 181,250 202,000 201,000
MAINTENANCE
TOTAL ]29,905 BfiQ335 1,09,100 885,000 69,500
OTHER EXPENSE
TOTAL 3,T4g51B 3,512719 J, 591, 258 3.]1],021 /,011,998
CUSTOMER ACCOUNTS EXP
TOTAL 225,030 242,363 210,000 268,18] 256,500
ADMINISTRATIVE/GENERAL EXPENSE _ __
_ __ TOTAL 1,)58,]05 1,95915] 1,884,548 2.062286 2,110,315
TOTAL EXPENSE 19 065 432 22 478 687 2J 688 862 25 009 172 27 977907
2007 2006 2009 2010 2011
ACTUAL ACTUAL BUDGET BUDGET BUDGET
TOTAL REVEN UES 20,582,258 23,418,875 24,879,988 25,397,792 28,254,719
TOTAL E%PEN SES 19,065,432 22,479,861 23,896,862 25,009,772 27,877,90)
PROFIT LOSS 1,518,828 936,950 723,326 388,020 )36,818
BUDGET COMPARISON
20ti9
ESTIMATED BUDGET
vertu uwmev
ACCOUNTB DESCRIP__TION __ 2007 2008 2009 2010 2017
ACTUAL ACTUAL BUDGET BUDGET BUDGET
WATER
TOTAL REVENUES 3,109,674 2,427447 2,302,500 2,079,500 2,094,800
_ Pnw Penh AOIU4lmenl OiA92) -8560 _~~ -
(88 BOND/ 20,000 20,000 20,000 20,000 25,000
MAINTENANCE _
TOTAL W,B91 34,238 3],500 34,000 43,000
PUMPING
TOTAL 416,141 J80,363 401,500 3]5,000 338,500
DISTRIBUTION
_
TOTAL
211,113
fB2,N2
228,100
213,000
200,000
_ OTHER EXPENSE _
____
TOTAL
1,152,812
1,26),]04
1,23B,2W
1,263,625
1,158,225
CUSTOMER ACCTS EXP
__
TOTAL
65,621
>2,811
56,150
59.833
4fi 800
ADMIN/GEN EXPENSE
TOTAL 45H,2H8.fie 535,281.92 535,]16.00 056,622.00 505.455
TOTAL EXPENSE 2,366,077 2,472,777 2,498,2fi3 2,402,460 2,292,980
WATER
TOTAL REVEN UES ~ 7,072,182 2,418,887 2,302,500 2,079,500 2,094,800
TOTAL EXPEN SES 2,368,077 2,472,717 2,498,263 2,402,480 __
2,292,980
PROFIT LOSS 666104 53830 795767 322880 198780
BUDGET COMPARISON