10-03-2000 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
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 of R.W. Beck
1. Call meeting 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
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 Study
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:
CLASS RATE COMPONENT PROPOSED
OPTION 2
Residential Monthly Charge $7.00
Summer kWh 0.0760/kWh
Winter kWh 0.0588/kWh
Non-Demand Monthly Charge $15.00
Summer kWh 0.0730/kWh
Winter kWh 0.0491/kWh
Demand Monthly Charge $35.00
All kWh/month 0.0320/kWh
All kW-mo (5 mo summer) $11.25/kW
All kW-mo (7 mo winter) $8.50/kW
Energy Storage All kWh/month 0.0380/kWh
Dual Fuel All kWh/month 0.0380/kWh
Air Conditioner All kWh/month 0.0380/kWh
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.
Res ctfully sub e ,
/ 111— In*/
Bryat C. Adams
General Manager