4.3. SR 10-16-2000
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City of 1.Y
Elk
Item # 4.3.
MEMORANDUM
TO:
Mayor & City Council
FROM:
Pat Klaers, City Administrator
DATE:
October 16, 2000
SUBJECT: Utilities Commission Update
Councilmember John Dietz is the City Council representative on the Elk
River Municipal Utilities Commission. At this October 16, 2000, City Council
meeting, John is scheduled to provide the council with an update on
September and October Utilities activities. Attached for your review are the
draft minutes from the October 3,2000, Utilities Commission meeting.
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13065 Orono Parkway. P.O. Box 490. Elk River, MN 55330. TDD & Phone (763) 441-7420 · Fax (763) 441-7425
ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
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October 3,2000
Elk River Utilities Offices
Members Present: John Dietz, President; George Zabee, Vice Chairman; James Tralle, Trustee
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent; David Berg,
Water Superintendent
Others Present: David Berg ofR.W. Beck
1. Call meetinl! to order at 4:00 P.M. October 3. 2000
2. Consider Utilities Agenda
James Tralle moved to approve the Agenda. George Zabee seconded the motion. Motion
carried 3-0.
3. Consider Consent Agenda
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George Zabee moved to approve the Consent Agenda as follows:
September 13,2000 Minutes
September 25, 2000 Minutes
James Tralle seconded the motion. Motion carried 3-0.
5.1 Review and Consider Electric Rate Studv
David Berg of R. W. Beck reviewed the completed rate study in detail. Much discussion
followed. David Berg confirmed the rate study reflected projected capital expenses with
bonding for the abnormal capital projects. He also stated that a level of approximately
$2,000,000 cash reserves is appropriate for an electric utility our size. David Berg
recommended rate option #2 for all rate cases. Rate option #2 is a rate realignment where the
residential and demand class customers are neutral and see no overall increase or decrease.
The non-demand class will receive approximately $150,000 rate decrease. As Great River
Energy increases the electric wholesale rates, Elk River Municipal Utilities must implement
across the board retail rate increase to keep the retail rates in line and maintain the appropriate
level of cash reserves. Rate option #2 is as follows:
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CLASS
Residential
Non-Demand
Demand
Energy Storage
Dual Fuel
Air Conditioner
RATE COMPONENT
PROPOSED
OPTION 2
$7.00
0.0760/kWh
0.0588/kWh
$15.00
0.0730/kWh
0.0491/kWh
$35.00
0.0320/kWh
$11.25/kW
$8.50/kW
0.0380/kWh
0.OJ80/kWh
0.0380/kWh
Monthly Charge
Summer kWh
Winter kWh
Monthly Charge
Summer kWh
Winter kWh
Monthly Charge
All kWh/month
All kW-mo (5 mo summer)
All kW-mo (7 mo winter)
All kWh/month
All kWh/month
All kWh/month
James Tralle moved to adopt rate option #2 for all rate classes effective January 1, 2001.
George Zabee seconded the motion. Motion carried 3-0.
George Zabee moved to adjourn the October 3, 2000 meeting of the Elk River Municipal
Utilities Commission. James Tralle seconded the motion. Motion carried 3-0.
The October 3, 2000 meeting of the Elk River Municipal Utilities Commission adjourned at
5:20 P.M.
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' Bry~ C. Adams
General Manager