5.3. ERMUSR 12-17-2019UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Theresa Slominski Administrations Director
MEETING DATE: AGENDA ITEM NUMBER:
December 17, 2019 5.3
SUBJECT:
2020 Annual Business Plan (Budget, Schedule of Rates & Fees)
ACTION REQUESTED:
Adopt the 2020 Annual Business Plan
BACKGROUND:
In November, the preliminary 2020 Annual Business Plan was presented to the commission.
There have been some changes due to finalizing of projects and expenses, and some cuts from
previously presented items. The final highlights are discussed below.
DISCUSSION:
Electric Budget and Rates
As discussed in November, we are proposing a 0% rate increase for 2020.
Notable items in the electric budget for 2020 are:
3% cost of living adjustment (COLA) for Office, Field, and Management pay plan groups;
4.2% COLA for Lineworker pay plan group;
Conservative estimate for usage and growth;
Replacement of bucket truck #21
Delay in replacement of digger truck #10 until 2021;
Shared cost in the replacement for Pickup Truck #14 for Technical Services (carryover
from 2019);
Shared cost in a technology upgrade for the Utilities Conference Room (carryover from
2019);
Electric Service Territory acquisition loss of revenue for Areas 1&2, 3&4, and 5&6 from
reserves;
Power Plant Substation Relocation and Field Services Site Prep for building in 2023;
Landfill Gas Plant rebuild of engines #2, #3, and #4, per contract.
Water Budget and Rates
st
The proposed 2019 residential water rates are a 2% increase to the 1 Tier and a 2% increase in
the basic monthly charge. These rate changes result in a projected 1.73% annual water cost
increase for a typical residential customer. This is the equivalent to a $5.00 per year increase for
st
these customers. For commercial customers, it is more difficult to classify typical users. The 1
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Page 1 of 3
558
Tier and basic monthly charges are increased by 2% in the proposed budget. But because the
ndrd
2 and 3 Tiers are not being increased, the amount of usage will result in commercial
customer blended rate increase of 2% or less.
Notable items in the water budget for 2020 are:
3% COLA for Office, Field, and Management pay plan groups;
Conservative estimate for usage and growth;
Shared cost in the replacement for Pickup Truck #14 for Technical Services;
Shared cost in a technology upgrade for the Utilities Conference Room (carryover from
2019);
Joint Urban Services District Study with the city funded from trunk funds;
Paint/Sandblast interior of the Gary Street Water Tower;
An additional water operator to help with Backflow Prevention inspections.
Submitted for approval is the 2020 Annual Business Plan which includes the 2020 Budget and
the 2020 Schedule of Rates & Fees. The 2020 fees were already approved by the commission in
November and are being presented here unchanged for formal adoption in the Annual Business
Plan. The adoption of the of the 2020 Schedule of Rates & Fees through the adoption of the
Annual Business Plan shall supersede and replace all previously adopted tariffs, rates, and fees.
FINANCIAL IMPACT:
The Travel and Training Budget is an increase from the prior year of 15%. This increase is a
result of growth, in size of the organization with new employees and in participation with
American Public Power Association (APPA.) Some of the proposed key items are as follows:
Additional training in all departments that was identified as a need in our organizational
effectiveness survey $6,750 (distributed among all departments)
An additional staff person attending the APPA Legislative Round-up $1,458
An additional meeting for RP3 participation $2,500
The Dues, Subscriptions, and Fees budget has a 30.3% increase, and is also a result of growth.
These increases are as follows:
Monthly increases in our software support with NISC as we implement Mobile
Workforce & AppSuite $5,995 (there is also a one-time cost associated with this of
$17,800, and some of it should be capitalized)
New Motorola radios that is per radio per month much like a cell phone cost $16,200
Mandated increase in connection fees for water from the Minnesota Department of
Health $20,000
Increased licensing cost for adding licenses to view maps remotely $22,248
Potential Backflow Prevention monitoring software
It was suggested that a list be compiled of items that were cut from the 2020 budget in order to
meet the margins for the electric department, per bond covenants. Then, should margins prove
sufficient as the year progresses, they could potentially be added back in. Some cut items occur
early in the year and are not able to be reconsidered. Items cut are eliminating a second rodeo
______________________________________________________________________________
Page 2 of 3
559
crew at the APPA competition, a commissioner attending the APPA National conference, a
second manager attending the Minnesota Municipal Utilities Association (MMUA) Leadership
Academy (all occurring early in the year), the OT position attending the APPA Cyber Security
Summit, one month of contracted tree trimming services, and various small trims from almost
all distribution and maintenance expense line items. Items that could be reconsidered and
added back into the budget in 2020 are: OT position attending APPA conference in the fall, and
contracted tree trimming in fourth quarter.
ATTACHMENTS:
Proposed 2020 Annual Business Plan
o 2020 Budget
o 2020 Schedule of Rates & Fees
______________________________________________________________________________
Page 3 of 3
560
2020 Annual Business Plan
561
TABLE OF CONTENTS
2020 BUDGET
Summary of Budgets
Electric Revenue and Expense Budget
Water Revenue and Expense Budget
Electric Capital Budget
Administration and Technical Services Capital Budgets
Water Capital Budget
Training and Travel Budget
Dues and Subscriptions Budget
Conservation Improvement Program Budget
2020 SCHEDULE OF RATES & FEES
Residential All Electric Service Rate
Residential Electric Service Rate
Residential Clean Energy Choice Program Rate
Non-Demand All Electric Service Rate
Non-Demand Electric Service Rate
Demand All Electric Service Rate
Demand Electric Service Rate
Large Demand Electric Service Rate
Large Industrial Transmission Transformed Service Rate Ʒƚ ĬĻ ķĻǝĻƌƚƦĻķ
Commercial Clean Energy Choice Program Rate
Off-Peak Demand Electric Service Rate
Commercial All Electric with Ground Source Heat Pump Service Rate
Ground Source Heat Pump Program Rate
Electric Vehicle Charging Rates
Energy Management Program Rates
Dispersed Generation/Interruptible Load Program Rate
Street/Security Light Service Rate
Water Service Rates
Fee Schedule
562
2020 Budget
563
ELK RIVER MUNICIPAL UTILITIES
SUMMARY OF YEAR 2020
BUDGETS
ELECTRIC BUDGET SUMMARY2020
ELECTRIC REVENUE$39,244,200
ELECTRIC EXPENDITURES(38,109,875)
ELECTRIC NET FOR CAPITAL 1,134,3262.89% 1,109,893110% annual avg debt svc2.83%
DEBT RETIREMENT(924,000)
PROMISSORY NOTE TO COUNTY(203,956)
NET LESS DEBT PRINCIPAL PMTS6,370
CAPITAL EQUIPMENT/CONSTRUCTION(5,578,360)
FUND FROM RESERVES1,000,000*Field Services Building site prep
851,860*Territory AcquisitionAreas 1&2, 3&4, 5&6 Loss of Revenue
NET(3,720,130)
DEPRECIATION3,030,678
NET TO RESERVES(689,452)*Note that this is separate from above funding of draw on reserves
WATER BUDGET SUMMARY2020
WATER REVENUE$2,838,582
WATER EXPENDITURES(3,100,536)
WATER NET FOR CAPITAL(261,953)-9.23%
DEBT RETIREMENT(271,000)
NET LESS DEBT PRINCIPAL PMTS(532,953)
CAPITAL EQUIPMENT/CONSTRUCTION(736,500)
FUND FROM RESERVES440,000*Gary St Tower
BONDING-
NET(829,453)
DEPRECIATION1,215,839
NET TO RESERVES386,386*Note that this is separate from above funding of draw on reserves
* Currently, target reserves are met.
564
ELK RIVER MUNICIPAL UTILITIES
ELK RIVER, MINNESOTA
BUDGET FOR PERIOD ENDING DECEMBER 2020
202020192018
ANNUAL ANNUAL ANNUAL
BUDGETBUDGETACTUAL
Electric
Revenue
Operating Revenue
Elk River
ELECT SALES/ELK RIVER RES11,827,24411,820,59511,940,603
ELECT SALES/ER NON-DEMAND3,142,8803,180,3553,212,643
ELECT SALES/ER DEMAND18,863,09919,153,58419,348,038
Total For Elk River:33,833,22334,154,53534,501,284
Otsego
ELECT SALES/OTSEGO RES1,196,3371,239,3381,251,920
ELECT SALES/OTSEGO NON-DEMA412,759447,270451,811
ELECT SALES/OTSEGO DEMAND1,099,8841,028,8761,039,321
2,708,9802,715,4842,743,052
Total For Otsego:
Rural Big Lake
ELECT SALES/BIG LAKE RES180,370183,510185,373
ELECT SALES/BL NON-DEMAND4,0983,8783,918
Total For Rural Big Lake:184,468187,389189,291
Dayton
ELECT SALES/DAYTON RES186,726185,782187,668
ELECT SALES/DAYTON NON-DEMA35,98635,93136,296
222,712221,713223,964
Total For Dayton:
Public St & Hwy Lighting
ELECT SALES/ELK RIVER SEC LTS225,195217,972220,185
Total For Public St & Hwy Lighting:225,195217,972220,185
Other Electric Sales
SUB-STATION CREDIT4,8004,8004,800
4,8004,8004,800
Total For Other Electric Sales:
Dispersed Generation Credit and AC Credit
DISPERSED GENERATION CREDIT(714,867)
A/C CREDIT(19,140)
00(734,007)
Total Operating Revenue
37,179,37837,501,89537,148,569
Other Operating Revenue
Interest/Dividend Income0
INTEREST & DIVIDEND INCOME100,00080,000330,107
100,00080,000330,107
Total For Interest/Dividend Income:
Customer Penalties
CUSTOMER DELINQUENT PENALTI210,000250,000199,753
Total For Customer Penalties:210,000250,000199,753
LFG Project
LFG PROJECT1,166,7421,157,3931,128,793
1,166,7421,157,3931,128,793
Total For LFG Project:
Connection Fees
DISCONNECT & RECONNECT CHAR150,000150,000269,787
Total For Connection Fees:150,000150,000269,787
Misc Revenue
MISC ELEC REVENUE - TEMP CHG2,150
STREET LIGHT5,000033,000
TRANSMISSION INVESTMENTS300,000200,000274,426
MISC NON-UTILITY50,00050,00051,601
GAIN ON DISPOSITION OF PROP0016,000
PERA PENSION REVENUE18,588
RENTAL PROPERTY INCOME8,08025,00025,487
CONTRIBUTIONS FROM CUSTOMER75,00075,000352,104
438,080351,050773,356
Total For Misc Revenue:
Total Other Revenue
Total For Total Other Revenue:2,064,8221,988,4432,701,796
39,244,20039,490,33839,850,365
Total Revenue
565
ELK RIVER MUNICIPAL UTILITIES
ELK RIVER, MINNESOTA
BUDGET FOR PERIOD ENDING DECEMBER 2020
202020192018
ANNUAL ANNUAL ANNUAL
BUDGETBUDGETACTUAL
Expenses
Purchased Power
PURCHASED POWER25,507,84925,724,10526,710,514
Total For Purchased Power:25,507,84925,724,10526,710,514
Operating & Mtce Expense
OPERATING SUPERVISION109,513109,31097,581
DIESEL OIL FUEL17,00016,00012,390
NATURAL GAS27,00026,00024,212
STATION PWR & WTR CONSP/PLAN33,00033,00032,508
OTHER EXP/PLANT SUPPLIES-ETC7,0003,6004,928
MISC OTHER PWR GENERATION EX7,0005,2008,919
cleaning contract reallocated
MAINTENANCE OF STRUCTURE/PL19,00030,00023,123
MTCE OF ENGINES/GENERATORS-P32,00037,5007,985
snow removal
MTCE OF PLANT/LAND IMPROVEM30,00020,00020,788
281,513280,610232,434
Total For Operating & Mtce Expense:
Landfill Gas
LFG PURCHASED GAS180,000172,565163,424
LANDFILL GAS O&M511,277550,000560,859
LFG ADMIN35,00038,80027,821
LFG INSURANCE25,00020,37516,308
LFG MTCE06,0001,210
Total For Landfill Gas:751,277787,740769,622
Transmission Expense
TRANSMISSION MTCE AND EXPENS39,00038,19919,669
39,00038,19919,669
Total For Transmission Expense:
Distribution Expense
REMOVE EXISTING SERV & METER1,6002,5001,468
increased licensing fees
SCADA EXPENSES42,03231,00026,747
TRANSFORMER EX/OVERHD & UND20,00025,00018,535
MTCE OF SIGNAL SYSTEMS2,0002,6002,566
METER EXP - REMOVE & RESET1,2002,500479
TEMP SERVICE-INSTALL & REMOV1,2002,5001,385
MISC DISTRIBUTION EXPENSE312,968325,000240,663
INTERCONNECTION CARRYING CH2,4162,4160
Total For Distribution Expense:383,416393,516291,846
Maintenance Expense
cleaning contract reallocated
MTCE OF STRUCTURES21,5007,5004,005
MTCE OF SUBSTATIONS28,00025,50022,454
MTCE OF SUBSTATION EQUIPMENT30,00035,00011,170
utilizing contracted tree trimming services 2020
MTCE OF OVERHD LINES/TREE TRI171,000125,000184,783
MTCE OF OVERHD LINES/STANDBY31,00031,00028,921
MTCE OF OVERHEAD140,000155,000143,499
MTCE OF UNDERGROUND/DISTRIB130,000118,000131,004
LOCATE ELECTRIC LINES95,000100,00046,143
LOCATE FIBER LINES1,00000
MTCE OF LINE TRANSFORMERS51,00051,00075,299
MTCE OF STREET LIGHTING45,00041,00049,972
MTCE OF SECURITY LIGHTING12,00013,0009,092
MTCE OF METERS107,000150,000129,496
VOLTAGE COMPLAINTS10,0008,3005,632
SALARIES/TRANS & DISTRIBUTION45,61753,79236,759
ELECTRIC MAPPING115,000125,000115,818
MTCE OF OVERHEAD SERVICE/2ND20,00018,00015,826
MTCE OF UNDERGROUND ELEC SE41,00041,00045,257
LOCATE UNDERGROUND SECOND
31,262
TRANSPORTATION EXPENSE225,000210,000223,505
1,319,1171,308,0921,309,897
Total For Maintenance Expense:
566
ELK RIVER MUNICIPAL UTILITIES
ELK RIVER, MINNESOTA
BUDGET FOR PERIOD ENDING DECEMBER 2020
202020192018
ANNUAL ANNUAL ANNUAL
BUDGETBUDGETACTUAL
Depreciation & Amortization
DEPRECIATION2,362,5432,895,5352,131,465
AMORTIZATION668,1350165,882
Total For Depreciation & Amortization:3,030,6782,895,5352,297,347
Interest Expense
INTEREST ON BONDS/LONG TERM657,782687,947430,644
INTEREST ON DEFEASED BONDS(3,317)(3,316)(3,316)
AMORTIZATION OF DEBT DISCOUN(48,152)(48,152)(45,327)
606,313636,479382,000
Total For Interest Expense:
Other Operating Expense
EV CHARGING EXPENSE4,8774,8483,686
LOSS ON DISPOSITION OF PROP (CA12,630020,962
OTHER DONATIONS4,1045,0002,238
MUTUAL AID001,281
PENSION EXPENSE60,000100,000(53,193)
OPEB EXPENSE
3,0002,910
INTEREST PD ON METER DEPOSITS23,82815,00020,816
RENTAL PROPERTY EXPENSE9,0006,0008,720
Total For Other Operating Expense:117,439130,8487,420
Customer Accounts Expense
METER READING EXPENSE29,29930,00021,271
COLLECTING EXP DISC/RECONNEC15,22615,00013,694
bill redesign, CRC increase
MISC CUSTOMER ACCTS EXP-COM279,000259,000255,891
CUST BLGS NOT PD/SENT FOR COL15,00045,000(63,451)
338,525349,000227,405
Total For Customer Accounts Expense:
Administrative Expense
SALARIES/OFFICE & COMMISSION755,000776,132600,865additional staff, reorg
TEMPORARY STAFFING4,0004,00013,596
OFFICE SUPPLIES & EXPENSE197,570119,00078,473website 50k, IT projects 67.5k
LT & WATER CONSUMPTION/OFFIC30,58735,00028,398
BANK CHARGES3,0003,0002,684
LEGAL FEES27,50030,00035,893
AUDITING FEES17,36016,08016,400
INSURANCE175,000158,900152,623
UTILITY SHARE DEF COMP103,000120,00073,558additional staff, reorg
UTIL SH OF MEDICAL/DENTAL/DIS780,000735,000634,702additional staff, reorg
UTILITY SHARE OF PERA255,000245,000221,038additional staff, reorg
UTILITY SHARE OF FICA241,500235,000209,454additional staff, reorg
EMPLOYEE SICK PAY120,983115,000110,089additional staff, reorg
EMPLOYEE HOLIDAY PAY131,643128,000123,508additional staff, reorg
EMPLOYEE VACATION & PTO PAY224,957205,000205,312additional staff, reorg
UPMIC DISTRIBUTION65,00059,00048,416additional staff, reorg
CONSULTING FEES30,00030,00052,986
TELEPHONE23,50021,16822,134
ADVERTISING15,00018,00028,238
DUES & SUBSCRIPTIONS - FEES162,800160,000218,371
SCHOOLS & MEETINGS270,360225,126149,251
MTCE OF GEN PLANT/OFF HEATIN5,8416,0005,439
Total For Administrative Expense:3,639,6013,444,4063,031,428
567
ELK RIVER MUNICIPAL UTILITIES
ELK RIVER, MINNESOTA
BUDGET FOR PERIOD ENDING DECEMBER 2020
202020192018
ANNUAL ANNUAL ANNUAL
BUDGETBUDGETACTUAL
General Expense
CIP REBATES - RESIDENTIAL75,62566,5508,125
CIP REBATES - COMMERCIAL210,200176,200245
CIP - ADMINISTRATION720126,265695
CIP - MARKETING43,40033,6007,507
CIP - LABOR135,338107,034137,261
CIP REBATES - LOW INCOME5,0001,5000
CIP - LOW INCOME LABOR4,500013,604
ENVIRONMENTAL COMPLIANCE30,56427,00027,895
MISC GENERAL EXPENSE4,8005,00010,940
Total For General Expense:510,147543,149206,275
Total Expenses(before Operating Transfers)
36,524,87536,531,67935,485,857
Operating Transfer
Operating Transfer/Other Funds
TRANSFER TO CITY 4% ER REVENU1,365,0001,182,0341,188,663
1,365,0001,182,0341,188,663
Total For Operating Transfer/Other Funds:
Utilities & Labor Donated
UTILITIES & LABOR DONATED220,000215,000215,295
Total For Utilities & Labor Donated:220,000215,000215,295
Net Income Profit(Loss)
1,134,3261,561,6252,960,550
568
ELK RIVER MUNICIPAL UTILITIES
ELK RIVER, MINNESOTA
BUDGET FOR PERIOD ENDING DECEMBER 2020
202020192018
ANNUAL ANNUAL ANNUAL
BUDGETBUDGETACTUAL
Water
Revenue
Operating Revenue
Water Sales
WATER SALES RESIDENTIAL1,242,9621,222,640
WATER SALES COMMERCIAL801,362783,135
WATER SALES IRRIGATION240,785234,313
2,285,1092,240,0882,445,688
Total For Water Sales:
Total Operating Revenue
2,285,1092,240,0882,445,688
2,285,1092,240,0882,445,688
Total For Total Operating Revenue:
Other Operating Revenue
Interest/Dividend Income
INTEREST & DIVIDEND INCOME38,00020,00025,334
OTHER INT/MISC REVENUE1,000850933
39,00020,85026,267
Total For Interest/Dividend Income:
Customer Penalties
CUSTOMER PENALTIES15,00018,00018,081
15,00018,00018,081
Total For Customer Penalties:
Connection Fees
WATER/ACCESS/CONNECTION FEE200,000200,000716,809
CUSTOMER CONNECTION FEES20,00020,00037,298
BULK WATER SALES/HYDRANT RE5,0004,00014,754
225,000224,000768,861
Total For Connection Fees:
Misc Revenue
MISC NON-UTILITY300300384
PERA PENSION OTHER REVENUE2023,476
RENTAL PROPERTY INCOME2,0006,0006,371
GAIN ON DISPOSITION OF PROPERTY7,425
TRANSFER IN FROM CITY25,00025,000Urban Services Study $25k
MISCELLANEOUS REVENUE097
HYDRANT MAINTENANCE PROGRA11,7607,00011,837
WATER TOWER LEASE235,713227,050218,317
274,473265,552247,907
Total For Misc Revenue:
Total Other Revenue
553,473528,4021,061,116
553,473528,4021,061,116
Total For Total Other Revenue:
2,838,5822,768,4903,506,804
Total Revenue
569
ELK RIVER MUNICIPAL UTILITIES
ELK RIVER, MINNESOTA
BUDGET FOR PERIOD ENDING DECEMBER 2020
202020192018
ANNUAL ANNUAL ANNUAL
BUDGETBUDGETACTUAL
Expenses
Production Expense
MTCE OF STRUCTURES60,00051,50053,135
60,00051,50053,135
Total For Production Expense:
Pumping Expense
SUPERVISION55,00063,46454,766
ELECTRIC & GAS UTILITIES230,000220,000224,348
SAMPLING18,00016,705
18,000
CHEMICAL FEED27,00024,702
28,000
MTCE OF ELECTRIC PUMPING EQUI161
MTCE OF WELLS186,124200,000151,160
SCADA - PUMPING10,00012,00012,737
527,124540,464484,579
Total For Pumping Expense:
Distribution Expense
MTCE OF WATER MAINS87,22090,00083,701
LOCATE WATER LINES16,00015,50014,034
WATER METER SERVICE45,14342,00043,266
MTCE OF CUSTOMERS SERVICE27,80525,00020,486
new account
BACKFLOW DEVICE INSPECTION11,782
WATER MAPPING16,00016,0009,784
MTCE OF WATER HYDRANTS - PUB25,00027,00021,856
MTCE OF WATER HYDRANTS - PRI9,00012,0001,065
WATER CLOTHING/PPE9,0007,0003,919
WAGES/WATER7,0007,6635,613
TRANSPORTATION EXPENSE15,00015,00014,806
GENERAL EXP/WATER PERMIT15,00015,00012,984
283,951272,163231,514
Total For Distribution Expense:
Depreciation & Amortization
DEPRECIATION1,215,8391,175,2141,193,745
1,215,8391,175,2141,193,745
Total For Depreciation & Amortization:
Interest Expense
INTEREST ON BONDS/LONG TERM24,34533,76842,693
INTEREST ON DEFEASED BONDS(829)(829)(829)
23,51632,93941,864
Total For Interest Expense:
570
ELK RIVER MUNICIPAL UTILITIES
ELK RIVER, MINNESOTA
BUDGET FOR PERIOD ENDING DECEMBER 2020
202020192018
ANNUAL ANNUAL ANNUAL
BUDGETBUDGETACTUAL
Other Operating Expense
DAM MAINTENANCE EXPENSE893500332
PENSION EXPENSE5,0005,000(24,934)
OPEB EXPENSE3,00016,175
INTEREST PD ON METER DEPOSITS758500724
RENTAL PROPERTY EXPENSE2,1251,5002,180
11,7767,500(5,523)
Total For Other Operating Expense:
Customer Accounts Expense
METER READING EXPENSE1,76110,0004,535
bill redesign CRC increase
MISC CUSTOMER ACCTS EXP-COM65,10060,50059,376
CUST BLGS NOT PD/SENT FOR COL1,0001,000(25,942)
67,86171,50037,969
Total For Customer Accounts Expense:
Administrative Expense
SALARIES/OFFICE & COMMISSION212,000199,067160,465additional staff, reorg
TEMPORARY STAFFING1,0001,0003,399
OFFICE SUPPLIES & EXPENSE54,16234,00013,539website 50k, IT projects 67.5k
LT & WATER CONSUMPTION/OFFIC7,3538,0007,099
BANK CHARGES8001,000681
LEGAL FEES5,5267,0007,596
AUDITING FEES4,3404,0204,100
INSURANCE24,00030,00023,721
UTILITY SHARE DEF COMP22,00019,00012,714additional staff, reorg
UTIL SH OF MEDICAL/DENTAL/DIS208,455152,000139,847additional staff, reorg
UTILITY SHARE OF PERA48,95345,00041,325additional staff, reorg
UTILITY SHARE OF FICA43,99045,00039,452additional staff, reorg
EMPLOYEE SICK PAY30,00037,00023,911additional staff, reorg
EMPLOYEE HOLIDAY PAY28,27525,85022,062additional staff, reorg
EMPLOYEE VACATION & PTO PAY37,00036,00034,778additional staff, reorg
UPMIC DISTRIBUTION11,00012,0009,339additional staff, reorg
MISCELLANEOUS - WELLHEAD PR1,000-
CONSULTING FEES34,0005,000353Urban Services Study $25k
TELEPHONE5,5005,3005,609
ADVERTISING7,0008,0008,269
DUES & SUBSCRIPTIONS - FEES52,00042,00042,750
SCHOOLS & MEETINGS57,87129,59417,193
MTCE OF GEN PLANT/OFF HEATIN1,8892,5001,359
897,114749,331619,561
Total For Administrative Expense:
571
ELK RIVER MUNICIPAL UTILITIES
ELK RIVER, MINNESOTA
BUDGET FOR PERIOD ENDING DECEMBER 2020
202020192018
ANNUAL ANNUAL ANNUAL
BUDGETBUDGETACTUAL
General Expense
CIP REBATES - RESIDENTIAL4,6054,5003,888
CIP REBATES - COMMERCIAL5000
CIP - ADMINISTRATION10140
CIP - MARKETING4777500
CIP - LABOR4,4895,0094,078
ENVIRONMENTAL COMPLIANCE1,003600543
MISC GENERAL EXPENSE1,1500768
11,72412,3739,277
Total For General Expense:
Total Expenses(before Operating Transfers)
3,098,9062,912,9842,666,121
1,014
Operating Transfer
Utilities & Labor Donated
0
WATER AND LABOR DONATED1,6301,583
Total Operating Transfer
1,6301,5830
Total For Total Operating Transfer:
(261,953)(146,077)840,683
572
Elk River Municipal Utilities Business Plan/Budget
2020 Electric Department Capital Budget
Capital Construction Projects - Non-Recurring Normal Distribution, Feeders, and Substations
CostDescription
$ 150,000Jarvis street rebuild
$ 100,000Otsego Coborns
$ -199th rebuild
$ 175,000185th Ave rebuild
$ 100,000Edison street rebuild
$ 75,000Otsego Street Lights
$ 150,000Cty Rd 39 Roundabouts
$ 80,000Leachate
$ 500,000Power Plant Substation Relocation
$ 500,000Field Services Site Prep (relocating feeders)
$ 150,000Relocate forced main sewer line at Field Services Site
$ 200,000Rebuild feeder 73 from power plant to Hwy 10
$ -Sectionalizing Line Recloser on Dayton River Road
$ 500,000Miske Meadow Feeder
$ -Load Management
$ 75,000Cty Rd 12 Rebuild to Anoka Cty line
Subtotal$ 2,755,000
Capital Construction Projects - Recurring
CostDescription
$ 200,000Transformers and Meters
$ 350,000New Development Distribution Installation
$ 50,000Street Lighting
$ 50,000Ongoing OH Equip Replacement (Poles, Switches, Cut-Outs)
$ 100,000Ongoing URD Equip Replacement (Switches, J-Boxes, Fuse Pads)
$ 500Territory Acquisition - Loss of Revenue payment (1991 contract)
$ 851,860Territory Acquisition - Loss of Revenue payment (2015 contract - Area 1&2, 3&4, 5&6)Reserves
Subtotal$ 1,602,360
Electric Noteworthy Non-Recurring Expenses
CostDescription
$ 2,400Sit/Stand Desks
$ 5,92080% share of Administration and Technical Services
Subtotal$ 8,320
Capital Equipment Needs
CostDescription
$ 2,200Laptop Computers, Ipads, Software, Accessories
$ -Pickup TrucksNone for the electric department this year.
$ -Replace Digger Truck
$ 250,000Replace Bucket Truck #21
$ 75,000Brush Chipper
$ 20,000Bore Rig Locator
$ 20,000Trailer
$ 856,00080% share of Administration and Technical Services inlcudes $690,000 LFG engines
Subtotal$ 1,223,200
Total$ 5,588,880
573
Elk River Municipal Utilities Business Plan/Budget
2020 Administration and Technical Services Departments Capital Budgets
Administration Capital Equipment Needs
CostDescription
$ 17,000Computer, Software, Accessories - Upgrades
$ 28,000IT system improvements for backup recording25% shared cost with City
$ 40,000IT system improvements for disaster recovery50% shared cost with Police Dept
$ 35,000Office Furniture(includes a tech upgrade for the commission room)
Subtotal$ 120,000
Administration Noteworthy Non-Recurring Expenses
CostDescription
$ 1,000Printers/scanners
$ 4,000Replace switch in production room (IT)
Subtotal$ 5,000
Total Administration$ 125,000
Technical Services Capital Equipment Needs
CostDescription
$ 6,500Computers, Software, Accessories - Upgrades
Diesel Engines Emission Retrofit$ 350,000Currently designated as emergency standby, retrofit on hold until further notice
Diesel Plant to run on Natural gas.$ 20,000Deferred until MMPA transition
$ 25,000upgrade tanks per inspection issues$25,000Deferred until 2020 or later
$ 690,000Rebuild Engine #2, #3, & #4 at Landfill per contract
$ 11,000Meter Testing Equipment
$ 45,000Replace Truck #14 - carryover from 2019
Subtotal$ 777,500
Technical Services Noteworthy Non-Recurring Expenses
CostDescription
$ 2,400Sit/Stand desks
Subtotal$ 2,400
Total Technical Services$ 779,900
574
Elk River Municipal Utilities Business Plan/Budget
2020 Water Department Capital Budget
Water Capital Construction Needs
CostDescription
$ 20,000Well #4 Roof Replacement
$ 25,000Chlorine Analyzers
$ 425,000Paint/Sandblast Gary Street Tower Reserves
$ 100,000Facility Repair
$ 15,000Placeholder for undetermined projects
$ 50,000Water Main Construction (Capital)
Subtotal$ 635,000
Water Noteworthy Non-Recurring Expenses
CostDescription
$ 10,300Computers
$ 10,000Meters/ERT
$ 40,000SCADA upgrades
$ 5,000Rate Study
$ 20,000Jackson Water Tower 100 year anniversary kiosk
$ 25,000Urban Services District Study(funded from trunk funds)
$ 1,48020% share of Administration and Technical Services
Subtotal$ 111,780
Capital Equipment Needs
CostDescription
TrucksNone for the water department this year.
$ 41,50020% share of Administration and Technical Services
$ -Field Services Facility site work
Subtotal$ 41,500
Total$ 788,280
575
ELK RIVER MUNCIPAL UTILITIES
TRAINING AND TRAVEL BUDGET FOR 2020
BudgetBudgetBudget
ELECTRIC201820192020
MMUA Overhead Hot Line School2 people3,165.003,165.002,110.00
MMUA Underground School2 people3,165.003,165.002,110.00
MMUA Transformer School2 people3,510.003,510.002,110.00
MMUA Substation Workshop2 people2,110.002,110.002,110.00
1st Line Supervision1 person1,700.001,700.001,700.00
Advanced Staking Workshop1 person1,900.00
Apprenticeship2 people2,200.001,650.001,100.00
MMUA Meter School2 people1,940.001,940.001,940.00
MMUA Locator Workshop2 people720.00720.00720.00
Regional Workshop10 people650.00650.001,150.00
Infrared Camera training750.00750.00
Competent Person training2 people950.00new
GPS750.00750.00
APPA Linemen Rodeo team 3 people4,284.004,284.003,401.00Kansas City KS 2020 1 team
Cross Training School/Diesel Workshop2 people1,910.001,910.001,910.00
PCB Training1 person1,428.001,428.001,428.00
Member Information Conf (NISC)1 person1,800.001,800.002,135.00
MMUA T&O Conference2 people850.00850.00
Tree Trimming/Chainsaw Workshop8 people4,120.00new
Leadership Training2,000.00Identified need in Survey
Additional Training2,000.002,000.002,000.00
32,082.0032,382.0035,744.0010%
WATER
Water Certification Continuing Education3 people2,000.002,000.002,000.00
Wastewater Certification Continuing Education3 people1,500.001,500.001,500.00
Professional Operator and Development 1 person750.00
Leadership Training500.00Identified need in Survey
Additional Training2,500.002,500.002,500.00
6,000.006,000.007,250.0021%
TECHNICAL SERVICES
MMUA Locator Workshop750.00750.00
Advanced Staking Workshop1 person750.00750.001,900.00
MMUA Diesel Workshop1 person750.00750.00750.00
Engineering seminar1 person2,000.002,000.002,000.00
Engineering MPSYCON1 person875.00875.00
UMMA Meter Workshop1 person903.00903.00903.00
CAD Workshops/GPS2,000.00
ESRI User Conference2,845.00--
Substation School1 person890.00890.00890.00
Power Quality training2 people750.00751.001,000.00
Infrared Camera training1 person1,000.001,000.00
UMMA winter mtg2 people800.00800.00800.00
UMMA summer mtg1 person400.00400.00400.00
1st Line Supervision
Electrical Licensing1 person360.00361.00365.00
Cross Training School1 person890.00890.00890.00
Apprentice Meter Program (2)
Leadership Training1,000.00Identified need in Survey
Additional Training1,000.001,000.001,000.00
13,088.0014,120.0013,773.00-2%
ADMINISTRATION
AWWAWater Certification Continuing Education1 staff1,700.001,700.001,700.00
MRWAWater Certification Continuing Education1 staff500.00
Wastewater Certification Continuing Education1 staff100.00100.00500.00
MV-RS Meter/Software training1 staff
AWWA National Conference1 staff2,100.00-2,100.00Attendance paid by AWWA 2019 with board position
Water Utility Management Institute1 staff605.00
Engineering MPSYCON1 staff875.00875.00
MMUA Annual Summer Meeting3 staff/ 5 comm7,090.007,090.007,406.00
MMUA Legislative Round-up2 staff/1 comm870.00870.001,305.00
APPA Legislative Round-up2 staff/1 comm2,950.002,950.006,475.00
MMUA T&O Conference4 staff2,400.002,400.002,400.00
Advanced Training1 staff1,900.00
Clerk's Conference1 staff950.00800.00800.00
MMUA Leadership Academy1 staff6,220.003,110.003,110.00
APPA E&O Conference3 staff4,140.006,185.006,185.00Missouri 2020
APPA National Conference1 staff/0 comm1,800.001,800.003,050.00California 2020
1st Line Supervision2 staff3,400.003,400.003,400.00
Member Information Conf (NISC)3 staff3,600.005,400.006,405.00New OT position attending
APPA Training (Mgmt, CS, Fin, Eng, CIP, etc)1 staff2,500.002,500.001,528.50Customer Connections Conference in Mnpls MN 2020
APPA Training (Mgmt, CS, Fin, Eng, CIP, etc)1 staff1,115.50Customer Connections Conference in Mnpls MN 2020
APPA Board Member and RP3 Travel1 staff2,500.00
APPA Cybersecurity Summit1 staff-New OT position attending potentially
Human Resources Training/Conference1 staff-
Emergency Preparedness & Restoration3 staff1,085.00
Management Training5,000.005,000.00.
Additional Training1,000.001,000.001,000.00
45,820.0045,785.0055,340.0021%
OFFICE
Member Information Conf (NISC)2 staff5,400.003,600.004,270.00
Customer Service3,500.001,750.005,250.00Identified need in Survey
Publishing and Design Software trng1 staff1,000.001,000.00
Chamber Leadership Program1 person400.00400.00400.00
Financial/Accounting (APA, CPA, SHRM & General)2,925.002,925.003,125.00
Leadership Training1,500.00Identified need in Survey
Additional Training1,000.001,000.001,000.00
13,225.0010,675.0016,545.0055%
SAFETY TRAINING
Safe Driver Training7 staff2,100.002,100.002,100.00
Additional Training1,000.00Identified need in Survey
Hearing Test700.00700.00700.00
MMUA Monthly Safety Meetings28,850.0029,200.0030,000.00
31,650.0032,000.0033,800.006%
EDUCATION3,000.003,000.003,000.00
144,865.00143,962.00165,452.0015%
Increase10.8%-0.6%14.9%
Page 1
576
ELK RIVER MUNCIPAL UTILITIES
DUES/SUBSCRIPTIONS/FEES BUDGET FOR 2020
BudgetBudgetBudget
201820192020
MMUA Membership Dues28,850.0030,679.2030,679.20
MMTG Dues5,942.336,550.006,550.00
APPA Dues15,500.0015,500.0015,500.00
APPA DEED Program Dues3,100.003,100.003,100.00
APPA Customer Survey Benchmarking1,200.001,200.00
Rotary300.00300.00300.00
Drug and Alcohol Random Testing961.00961.00961.00
Software Support135,600.00135,600.00141,595.00Mobile Workforce & AppSuite monthly costs included
Bond Administrative & Management Fees1,350.001,700.001,700.00
Miscellaneous1,000.001,000.001,000.00
SCADA OSI Fee (GRE)14,000.0025,000.0027,375.00
800 Mhz Radio Licensing3,675.003,675.003,675.00
Motorola Wave Radios16,200.00
Publications387.00387.00387.00
Quarterly MN Dept of Health Water Connection Fee32,000.0032,000.0052,000.00Increase in Connection Fee cost per MN Dept of Health
MRWA Annual Fee250.00270.00270.00
AWWA Annual Fee (Dues and Updates)1,082.002,126.002,444.90
Annual Report on Water Use - DNR (WTP)11,260.0011,755.0012,225.00
MPCA Permit Fee - WTP345.00345.00345.00
MPCA Permit Fee - Engines586.00586.00586.00
Homeland Security (Hazardous Chemical Fee)700.00725.00725.00
SUSA Membership125.00125.00125.00
Annual Report on Water Use - DNR (Engines)140.00140.00140.00
Elk River Chamber Membership 500.00500.00500.00
Economic Development Association295.00295.00295.00
GASB Subscription250.00265.00265.00
ESRI Maintenance Support2,281.002,752.00-Support included in the enterprise agreement
ESRI Small Govt Enterprise agreement25,000.00Increased license count for GIS access required enterprise agreement
AutoCAD Maintenance Support1,590.002,150.002,600.00
Inframap Software Maintenance3,200.003,200.00
Itron Software for Metering Billing12,705.0013,165.0013,625.00
Vistapoint Phone System Support1,010.001,010.001,010.00
Charging Station Warranty & Service1,000.003,860.001,319.00
Adobe Creative Cloud software900.001,800.001,800.00
Adobe software52.00260.00
Border States Electric Barcoding Support550.00550.00875.00
Resource Training & Solutions membership190.00190.00190.00
Munici-pals Membership25.0025.0025.00
Survey Monkey300.00300.00300.00
Partnership Safe Water300.00300.00
Drive Electric500.00500.00
Mobile Workforce & AppSuite - implementation 202017,800.00February 3, 2020 Live date - one time cost
HR professional membership(s)500.00
RPZ Software Annual Expense7,500.00
278,749.33304,638.20396,947.10
1.3%9.3%30.3%
Page 1
577
2020 CIP Operating Budget
Required Spending and Savings Goals
Total Spending Requirement 1.5% of GOR$ 513,645.00
Low Income .2% of Residential GOR$25,444.43
Minimum Conservation Spending Requirement$ 256,822.50
Maximum Load Management Spending Requirement$ 256,822.50
Energy Savings Goal (kWh)4,734,577
Total CIP Budget 2020
Direct Labor$ 84,938
General & Administration$ 39,200
Advertising$ 43,400
Equipment$ 41,500
Contract (Includes $27,000 MN PUC Assessment)$ 62,500
Total$ 271,538
ERMU Rebates$ 290,825
Total all Expenses and Rebates$ 562,363
Total Estimated kWh Savings4,763,268
Total Operating CIP Budget No Rebates Only Direct Costs
Direct Labor$ 84,938
Advertising$ 43,400
Equipment$ 41,500
Contract (Includes $25,000 MN PUC Assessment)$ 62,500
Total ERMU Operating Expenses$ 232,338
Total Rebate Budget
ERMU Self Funded$ 290,825
Total Requested Budget
Direct Labor$ 84,938
Advertising$ 43,400
Equipment$ 41,500
Contract (Includes $25,000 MN PUC Assessment)$ 62,500
ERMU Self Funded Rebates$ 290,825
Total Requested 2020 Budget*$ 523,163
*No General and Administrative Included
Amount in Excess of Required Spending$ 9,518
* Note - Additional kWh savings, and Implementation of LM programs
additional marketing, equipment, and G&A for new LM start-up.
578
2020 Schedule of Rates & Fees
579
RESIDENTIAL ALL ELECTRIC SERVICE RATE
Available: Within Elk River Municipal Utilities (ERMU) established service territory.
Applicable: To single-family residences and individually metered apartments for all domestic purposes
with electric energy as a sole source of heating, and when all service is supplied through a single meter,
provided ratings of individual single-phase motors do not exceed five (5) horsepower.
Character of Service: AC, 60 cycles, 120/240 volt, three wire, single-phase.
Special Conditions: Residential service to a multiple dwelling or apartment house through a single meter
is allowed for existing services only. Service under this rate schedule shall not be sub-metered and
resold to the individual tenants on the basis of usage and the cost of electric service to the tenant must
be furnished without specific charge or price which varies with the quantity of energy used.
Any apartment or dwelling unit which has separate permanent kitchen facilities shall be considered as
one single family private residence.
Meter to be accessible to our service department at any time.
Residential All Electric Service Rate:
Basic Monthly Electric Charge: $13.50 per month
Summer Winter
$0.1270 / kWh / month $0.1160 / kWh / month
Summer Rate: Applicable during the five monthly billing periods of June October.
Winter Rate: Applicable during the seven monthly billing periods of November May.
Rates are subject to application of Power Cost Adjustment (PCA).
Federal, state, and local taxes may apply.
Minimum Bill: The Basic Monthly Electric Charge.
Billing and Terms of Payment: See ERMU Service Policies Policy (Billing Due Dates, and Penalties and
Delinquent Notices.)
Page 1 of 2
580
Residential All Electric Service Rate
Terms and Conditions:
1.Usage may be fractionalized on the actual days of service for application of a change in rate or
changing from summer to winter or from winter to summer rates.
2.Service will be furnished pursuant to rules.
3.Extensions made for service under this schedule are subject to the provisions of rules
governing Extension of Service and Facilities.
4.The rates set forth herein may be modified by the amount of any governmental changes
imposed and levied on transmission, distribution, production, or the sale of electrical power.
5.Exceptions by management approval only.
Adopted December 17, 2019
Effective January 1, 2020
Page 2 of 2
581
RESIDENTIAL ELECTRIC SERVICE RATE
Available: Within Elk River Municipal Utilities (ERMU) established service territory.
Applicable: To single-family residences and individually metered apartments for all domestic purposes
when all service is supplied through a single meter, provided ratings of individual single-phase motors
do not exceed five (5) horsepower.
Character of Service: AC, 60 cycles, 120/240 volt, three wire, single-phase.
Special Conditions: Residential service to a multiple dwelling or apartment house through a single meter
is allowed for existing services only. Service under this rate schedule shall not be sub-metered and
resold to the individual tenants on the basis of usage and the cost of electric service to the tenant must
be furnished without specific charge or price which varies with the quantity of energy used.
Any apartment or dwelling unit which has separate permanent kitchen facilities shall be considered as
one single family private residence.
Meter to be accessible to our service department at any time.
Residential Electric Service Rate:
Basic Monthly Electric Charge: $13.50 per month
Summer Winter
$0.1270 / kWh / month $0.1160 / kWh / month
Summer Rate: Applicable during the five monthly billing periods of June October.
Winter Rate: Applicable during the seven monthly billing periods of November May.
Rates are subject to application of Power Cost Adjustment (PCA).
Federal, state, and local taxes may apply.
Minimum Bill: Basic Monthly Electric Charge.
Billing and Terms of Payment: See ERMU Service Policies Policy (Billing Due Dates, and Penalties and
Delinquent Notices.)
Page 1 of 2
582
Residential Electric Service Rate
Terms and Conditions:
1.Usage may be fractionalized on the actual days of service for application of a change in rate or
changing from summer to winter or from winter to summer rates.
2.Service will be furnished pursuant to rules.
3.Extensions made for service under this schedule are subject to the provisions of rules
governing Extension of Service and Facilities.
4.The rates set forth herein may be modified by the amount of any governmental changes
imposed and levied on transmission, distribution, production, or the sale of electrical power.
5.Exceptions by management approval only.
Adopted December 17, 2019
Effective January 1, 2020
Page 2 of 2
583
RESIDENTIAL CLEAN ENERGY CHOICE PROGRAM RATE
Available: Within Elk River Municipal Utilities (ERMU) established service territory.
Applicable: To ERMU customers receiving service under another residential electric rate.
This Program is available to residential
will have the option to purchase 50, 75 or 100 percent of the monthly energy consumption from
renewable energy sources.
The customer shall agree to:
1.Complete an application - through the online registration process, or returning a printed copy to
ERMU.
2.Clearly indicate the participation level and the additional monthly charge applicable to the 50,
75 or 100 percent subscription level desired.
3.Provide notice to ERMU to cancel participation.
ERMU shall provide:
1.Monthly billing statement with the Clean Energy Choice participation level clearly identified.
2.The applicable incremental cost per participation level will be identified and added to the billing
statement.
Participation Level % Monthly Charge
50 $1
75 $2
100 $3
Federal, state and local taxes may apply.
Adopted December 17, 2019
Effective January 1, 2020
Page 1 of 1
584
NON-DEMAND ELECTRIC SERVICE RATE
Available: Within Elk River Municipal Utilities (ERMU) established service territory.
Applicable: Available for non-residential customer accounts. Existing or new Customer accounts with
actual or projected demands of less than 50 kW for the previous 12 consecutive months if applicable.
When the Customer achieves an actual maximum demand of 50 kW or greater, the Customer will be
placed on the Demand Electric Service rate in the next billing cycle. The Customer accounts shall be in
compliance with all policies, procedures, and safety requirements, and shall be taken through one
meter. Rating of individual single-phase motors and other single-phase power and heating units served
under this schedule shall not exceed ten (10) horsepower (or 7.355 kW) except by special permission.
(Not applicable to resale, standby or auxiliary service.)
Character Of Service: AC, 60 cycles, 120 volts or 120/240 volts, single-phase; 120/208 volts, or 277/480
volts, three-phase. Four wire, 240 volts three phase will only be applicable to existing customers now
being served by this voltage. A Customer requiring voltages other than that already established by
ERMU shall be required to provide suitable space and location for transformers, metering and
associated equipment.
Special Conditions: One meter shall be installed to service one class of business. If additional buildings
are required for a given business, they shall be interconnected by the customer to obtain one meter. If
additional meters and services are requested by the customer, each shall be treated as a separate
customer and billed individually.
Meter must be accessible to our service department at any time.
Installation of Demand Meter: At the option of ERMU, a demand meter may be installed on any
customer whose monthly usage exceeds 15,000 kWh.
Non-Demand Service Rate:
Basic Monthly Electric Charge: $30.00 per month
Summer Winter
$0.1230 / kWh / month $0.1030 / kWh / month
Summer Rate: Applicable during the five monthly billing periods of June October.
Winter Rate: Applicable during the seven monthly billing periods of November May.
Rates are subject to application of Power Cost Adjustment (PCA).
Page 1 of 2
585
Non-Demand Electric Service Rate
Federal, state, and local taxes may apply.
Minimum Bill: The Basic Monthly Electric Charge plus $1.00 per kW per month of excess transformer
capacity requested by customer.
In the case of equipment having abnormally low annual utilization factors or unusual operating
characteristics, special minimum charges may be prescribed by ERMU.
Power Factor Adjustment: The rates set forth in this schedule are based on the maintenance by the
Customer of a power factor of not less than 95% at all times. If the power factor, as measured by the
electric department, is lower than 95%, the monthly demand charge may be multiplied by the ratio 95%
divided by the measured power factor, or at option, the power factor may be corrected at the
Fluctuating Loads: Customers operating equipment having a highly fluctuating or large instantaneous
demand, such as welders and X-ray machines, shall be required to pay all non-betterment costs of
isolating the load from the balance of lines. No motor larger than ten (10) HP (or 7.355 kW) will
be allowed to be across-the-line started without notification and written authorization from ERMU. In
addition, Customers who fail to provide adequate corrective equipment shall be required to own and
maintain their own transformers.
Billing and Terms of Payment: See ERMU Service Policies Policy (Billing Due Dates, and Penalties and
Delinquent Notices.)
Terms and Conditions:
1.Usage may be fractionalized on the actual days of service for application of a change in rate or
changing from summer to winter or from winter to summer rates.
2.Service will be furnished rules.
3.Extensions made for service under this schedule are subject to the provisions of rules
governing Extension of Service and Facilities.
4.The rate set forth herein may be modified by the amount of any governmental changes imposed
and levied on transmission, distribution, production, or the sale of electrical power.
5.Exceptions by management approval only.
Adopted December 17, 2019
Effective January 1, 2020
Page 2 of 2
586
NON-DEMAND ALL ELECTRIC SERVICE
Available: Within Elk River Municipal Utilities (ERMU) established service territory.
Applicable: Available for non-residential customer accounts. Existing or new Customer accounts with
electric energy as a sole source of heating, and with actual or projected demands of less than 50 kW for
the previous 12 consecutive months if applicable. When the Customer achieves an actual maximum
demand of 50 kW or greater, the Customer will be placed on the Demand Electric Service rate in the
next billing cycle. The Customer accounts shall be in compliance with all policies, procedures, and safety
requirements, and shall be taken through one meter. Rating of individual single-phase motors and other
single-phase power and heating units served under this schedule shall not exceed ten (10) horsepower
(or 7.355 kW) except by special permission. (Not applicable to resale, standby or auxiliary service.)
Character Of Service: AC, 60 cycles, 120 volts or 120/240 volts, single-phase; 120/208 volts, or 277/480
volts, three-phase. Four wire, 240 volts three phase will only be applicable to existing customers now
being served by this voltage. A Customer requiring voltages other than that already established by
ERMU shall be required to provide suitable space and location for
associated equipment.
Special Conditions: One meter shall be installed to service one class of business. If additional buildings
are required for a given business, they shall be interconnected by the customer to obtain one meter. If
additional meters and services are requested by the customer, each shall be treated as a separate
customer and billed individually.
Installation of Demand Meter: At the option of ERMU, a demand meter may be installed on any
customer whose monthly usage exceeds 15,000 kWh.
Meter must be accessible to our service department at any time.
Non-Demand All Electric Service Rate:
Basic Monthly Electric Charge: $30.00 per month
Summer Winter
$0.1230 / kWh / month $0.1030 / kWh / month
Summer Rate: Applicable during the five monthly billing periods of June October.
Winter Rate: Applicable during the seven monthly billing periods of November May.
Rates are subject to application of Power Cost Adjustment (PCA).
Page 1 of 2
587
Non-Demand All Electric Service Rate
Federal, state, and local taxes may apply.
Minimum Bill: The Basic Monthly Electric Charge plus $1.00 per kW per month of excess transformer
capacity requested by customer.
In case of equipment having abnormally low annual utilization factors or unusual operating
characteristics, special minimum charges may be prescribed by ERMU.
Power Factor Adjustment: The rates set forth in this schedule are based on the maintenance by the
Customer of a power factor of not less than 95% at all times. If the power factor, as measured by the
electric department, is lower than 95%, the monthly demand charge may be multiplied by the ratio 95%
divided by the measured power factor, or at option, the power factor may be corrected at the
Fluctuating Loads: Customers operating equipment having a highly fluctuating or large instantaneous
demand, such as welders and X-ray machines, shall be required to pay all non-betterment costs of
isolating the load from the balance of lines. No motor larger than ten (10) HP (or 7.355 kW) will
be allowed to be across-the-line started without notification and written authorization from ERMU. In
addition, Customers who fail to provide adequate corrective equipment shall be required to own and
maintain their own transformers.
Billing and Terms of Payment: See ERMU Service Policies Policy (Billing Due Dates, and Penalties and
Delinquent Notices.)
Terms and Conditions:
1. Usage may be fractionalized on the actual days of service for application of a change in rate
or changing from summer to winter or from winter to summer rates.
2. Service will be furnished pursuant to rules.
3. Extensions made for service under this schedule are subject to the provisions of rules
governing Extension of Service and Facilities.
4. The rate set forth herein may be modified by the amount of any governmental changes
imposed and levied on transmission, distribution, production, or the sale of electrical power.
5. Exceptions by management approval only.
Adopted December 17, 2019
Effective January 1, 2020
Page 2 of 2
588
DEMAND ALL ELECTRIC SERVICE RATE
Available: Within Elk River Municipal Utilities (ERMU) established service territory.
Applicable: Available for non-residential customer accounts. Existing or new Customer accounts with
electric energy as a sole source of heating, and with actual or projected demand greater than or equal to
50 kW. A Customer account with a billing demand of less than 50 kW for 12 consecutive months will be
given the option of switching to the Non-Demand rate. The Customer accounts shall be in compliance
with all policies, procedures, and safety requirements, and shall be taken through one meter. (Not
applicable to resale, standby or auxiliary service.) A Customer on this rate may qualify for integrity
testing.
Character Of Service: AC, 60 cycles, 120 volts or 120/240 volts, single-phase; 120/208 volts, or 277/480
volts, three-phase. Four wire, 240 volts three-phase will only be applicable to existing customers now
being served by this voltage. A customer requiring voltages other than that already established shall be
required to provide suitable space and location for transformers, metering and associated
equipment.
Special Conditions: One meter shall be installed to service one class of business. If additional buildings
are required for a given business, they shall be interconnected by the customer to obtain one meter,
unless an exception is approved by management. If additional meters and services are requested by the
customer, each shall be treated as a separate customer and billed individually.
Meter to be accessible to our service department at any time.
Demand Service Rate:
Basic Monthly Electric Charge: $75.00 per month.
Summer Winter
Demand Charge: $15.50 $11.50 in kW / month
Energy Charge: $0.0651 $0.0651 in kWh / month
Summer Rate: Applicable during the five monthly billing periods of June October.
Winter Rate: Applicable during the seven monthly billing periods of November May.
Rates are subject to application of Power Cost Adjustment (PCA).
Federal, state and local taxes may apply.
Page 1 of 2
589
Demand All Electric Service Rate
Minimum Bill: Maximum billing demand during previous twelve months times 3.0% of the demand
charge, or the actual demand multiplied by the demand charge, whichever is greater plus $1.00 per kVA
per month of excess transformer capacity requested by customer.
Determination of Billing Demand: The billing demand shall be the highest measured demand (corrected
for power factor if required) during any fifteen (15) minute period occurring in the current billing period.
But in no month shall the billing demand be greater than the value in kW determined by dividing the
kWh sales for the billing month by 75 hours per month. This billing adjustment applies only if the
Fluctuating Loads: Customers operating equipment having a highly fluctuating or large instantaneous
demand, such as welders and X-ray machines, shall be required to pay all non-betterment costs of
isolating the load from the balance of system so that the load will not unduly interfere with
service on ERMU's lines. In addition, Customers who fail to provide adequate corrective equipment shall
be required to own and maintain their own transformers. No motor larger than ten (10) HP (or 7.355
kW) will be allowed to be across-the-line started without notification and written authorization from
ERMU.
Power Factor Adjustment: For loads of 50 kW or more, or at the option of ERMU for loads of less than
50 kW, power factor adjustments may be made in the billing demand, when the power factor, as
measured by electric department, is lower than 95%, the monthly demand charge may be
multiplied by the ratio 95% divided by the measured power factor, or at option, the power
Billing and Terms of Payment: See ERMU Service Policies Policy (Billing Due Dates, and Penalties and
Delinquent Notices.)
Terms and Conditions:
1.Usage may be fractionalized on the actual days of service for application of a change in rate.
2.Service will be furnished pursuant to rules.
3.Extensions made for service under this schedule are subject to the provisions of rules
governing Extension of Service and Facilities.
4.The rates set forth herein may be modified by the amount of any governmental changes
imposed and levied on transmission, distribution, production, or the sale of electrical power.
5.Exceptions by management approval only.
Adopted December 17, 2019
Effective January 1, 2020
Page 2 of 2
590
DEMAND ELECTRIC SERVICE RATE
Available: Within Elk River Municipal Utilities (ERMU) established service territory.
Applicable: Available for non-residential customer accounts. Existing or new Customer accounts with
actual or projected demand greater than or equal to 50 kW. A Customer account with a billing demand
of less than 50 kW for 12 consecutive months will be given the option of switching to the Non-Demand
rate. The Customer accounts shall be in compliance with all policies, procedures, and safety
requirements, and shall be taken through one meter. (Not applicable to resale, standby or auxiliary
service.) A Customer on this rate may qualify for integrity testing.
Character Of Service: AC, 60 cycles, 120 volts or 120/240 volts, single-phase; 120/208 volts, or 277/480
volts, three-phase. Four wire, 240 volts three-phase will only be applicable to existing customers now
being served by this voltage. A customer requiring voltages other than that already established shall be
required to provide suitable space and location for transformers, metering and associated
equipment.
Special Conditions: One meter shall be installed to service one class of business. If additional buildings
are required for a given business, they shall be interconnected by the customer to obtain one meter,
unless an exception is approved by management. If additional meters and services are requested by the
customer, each shall be treated as a separate customer and billed individually.
Meter to be accessible to our service department at any time.
Demand Service Rate:
Basic Monthly Electric Charge: $75.00 per month.
Summer Winter
Demand Charge: $15.50 $11.50 in kW / month
Energy Charge: $0.0651 $0.0651 in kWh / month
Summer Rate: Applicable during the five monthly billing periods of June October.
Winter Rate: Applicable during the seven monthly billing periods of November May.
Rates are subject to application of Power Cost Adjustment (PCA).
Federal, state and local taxes may apply.
Page 1 of 2
591
Demand Electric Service Rate
Minimum Bill: Maximum billing demand during previous twelve months times 3.0% of the demand
charge, or the actual demand multiplied by the demand charge, whichever is greater plus $1.00 per kVA
per month of excess transformer capacity requested by customer.
Determination of Billing Demand: The billing demand shall be the highest measured demand (corrected
for power factor if required) during any fifteen (15) minute period occurring in the current billing period.
But in no month shall the billing demand be greater than the value in kW determined by dividing the
kWh sales for the billing month by 75 hours per month. This billing adjustment applies only if the
Fluctuating Loads: Customers operating equipment having a highly fluctuating or large instantaneous
demand, such as welders and X-ray machines, shall be required to pay all non-betterment costs of
he load will not
provide adequate corrective equipment shall be required to own and maintain their own transformers.
No motor larger than ten (10) HP (or 7.355 kW) will be allowed to be across-the-line started without
notification and written authorization from ERMU.
Power Factor Adjustment: For loads of 50 kW or more, or at the option of ERMU for loads of less than
50 kW, power factor adjustments may be made in the billing demand, when the power factor, as
measured by electric department, is lower than 95%, the monthly demand charge may be
multiplied by the ratio 95% divided by the measured power factor, or at option, the power
Billing and Terms of Payment: See ERMU Service Policies Policy (Billing Due Dates, and Penalties and
Delinquent Notices.)
Terms and Conditions:
1. Usage may be fractionalized on the actual days of service for application of a change in rate.
2. Service will be furnished pursuant to rules.
3. Extensions made for service under this schedule are subject to the provisions of rules
governing Extension of Service and Facilities.
4. The rates set forth herein may be modified by the amount of any governmental changes
imposed and levied on transmission, distribution, production, or the sale of electrical power.
5. Exceptions by management approval only.
Adopted December 17, 2019
Effective January 1, 2020
Page 2 of 2
592
LARGE INDUSTRIAL DEMAND ELECTRIC SERVICE RATE
Available: Within Elk River Municipal Utilities (ERMU) established service territory.
Applicable: Available for non-residential customer accounts. Existing or new Customer accounts with
actual or projected demand greater than or equal to 1 MW. A Customer account with a billing demand
of less than 1 MW for 12 consecutive months may be switched to the Demand Electric Service Rate. The
Customer accounts shall be in compliance with all policies, procedures, safety requirements, and shall
be taken through one or more meters. Not applicable to resale, standby or auxiliary service.
Character Of Service: 3-Phase Primary, 7,200/12,470 volt, AC, 60 cycles.
Special Conditions: Customer must provide a location suitable for the installation of a utility metering
cabinet(s). Customer will be responsible for providing suitable wire and connection in the utility owned
metering cabinet(s). The primary meter(s) and cabinet(s) shall be installed to service one class of
business. If additional buildings are required for a given business, they shall be interconnected by the
customer to the existing meter(s), unless an exception is approved by management. If additional
meters and services are requested by the customer, each shall be treated as a separate customer and
billed individually. A customer on the rate may qualify for integrity testing.
ERMU equipment and metering must be accessible to ERMU 24 hours per day.
Demand Service Rate:
Basic Monthly Electric Charge: $100.00 per month.
Summer Winter
Demand Charge: $15.00 $11.00 in kW / month
Energy Charge: $0.0644 $0.0644 in kWh / month
Summer Rate: Applicable during the five monthly billing periods of June October.
Winter Rate: Applicable during the seven monthly billing periods of November May.
Rates are subject to application of Power Cost Adjustment (PCA).
Federal, state, and local taxes may apply.
Minimum Bill: Maximum billing demand during previous twelve months times 3.0% of the demand
charge, or the actual demand multiplied by the demand charge, whichever is greater plus $1.00 per kW
per month of excess transformer capacity requested by customer.
Page 1 of 2
593
Large Industrial Demand Electric Service Rate
Determination of Billing Demand: The billing demand shall be the highest measured demand (corrected
for power factor if required) during any fifteen (15) minute period occurring in the current billing period.
Fluctuating Loads: Customers operating equipment having a highly fluctuating or large instantaneous
demand, such as welders and X-ray machines, shall be required to pay all non-betterment costs of
isolating the system so that the load will not unduly interfere with
lines. No motor larger than ten (10) HP (or 7.355 kW) will be allowed to be across-
the-line started without notification and written authorization from ERMU.
Power Factor Adjustment: Power factor adjustments may be made in the billing demand, when the
tment, is lower than 95%, the monthly demand
Billing and Terms of Payment: See ERMU Service Policies Policy (Billing Due Dates, and Penalties and
Delinquent Notices.)
Terms and Conditions:
1.Usage may be fractionalized on the actual days of service for application of a change in rate.
2.Service will be furnished pursuant to ERMU rules.
3.
governing Extension of Service and Facilities.
4.The rates set forth herein may be modified by the amount of any governmental changes
imposed and levied on transmission, distribution, production, or the sale of electrical power.
5.Exceptions by management approval only.
Adopted December 17, 2019
Effective January 1, 2020
Page 2 of 2
594
COMMERCIAL CLEAN ENERGY CHOICE PROGRAM RATE
Available: Within Elk River Municipal Utilities (ERMU) established service territory.
Applicable: To ERMU customers receiving service under another commercial electric rate.
This Program is available to commercial customers choosing to purchase renewable energy.
will be required to participate for one calendar year and the applicable Clean Energy Choice incremental
charge will apply to all energy sold in the calendar year.
The customer shall agree to:
1.Contact ERMU staff to discuss program participation.
2.Sign a contractual agreement for one calendar year prior to December 1 for participation in the
upcoming year.
3.Continue to participate in the program annually until customer provides written notice of
cancelation to ERMU.
4.Provide written notice of cancelation in the program to ERMU prior to December 1 of a given
year for the upcoming year.
ERMU shall provide:
1.Estimate of annual incremental charge for participating in program.
2.Clean Energy Choice incremental charge per kWh is $0.001.
3.The incremental charge applies to all kWh purchases in excess of the Wholesale Renewable
Energy Standard.
4.The incremental charge will be calculated based on actual kWh consumed in the billing period.
5.The incremental charge will be calculated as follows:
\[kWh consumed X (100% - Wholesale Renewable Energy Standard) X $0.001\]
6.Monthly billing statement with the Clean Energy Choice incremental charge identified.
7.Program price changes by November 1 for the coming year.
Federal, state and local taxes may apply.
Adopted December 17, 2019
Effective January 1, 2020
Page 1 of 1
595
OFF-PEAK DEMAND ELECTRIC SERVICE RATE
Available: Within Elk River Municipal Utilities (ERMU) established service territory.
Applicable: Available for non-residential customer accounts. Existing or new Customer accounts with
actual or projected demand greater than or equal to 50 kW. A Customer account with a billing demand
of less than 50 kW for 12 consecutive months will be given the option of switching to the Non-Demand
rate. The Customer accounts shall be in compliance with all policies, procedures, and safety
requirements, and shall be taken through one meter. (Not applicable to resale, standby or auxiliary
service.)
Character Of Service: AC, 60 cycles, 120 volts or 120/240 volts, single-phase; 120/208 volts, or 277/480
volts, three-phase. Four wire, 240 volts three-phase will only be applicable to existing customers now
being served by this voltage. A customer requiring voltages other than that already established shall be
required to provide suitable space location of transformers, metering and associated
equipment.
Special Conditions: One meter shall be installed to service one class of business. If additional buildings
are required for a given business, they shall be interconnected by the customer to obtain one meter,
unless an exception is approved by management. If additional meters and services are requested by the
customer, each shall be treated as a separate customer.
Meter to be accessible to our service department at any time.
Off Peak Demand Service Rate:
Basic Monthly Electric Charge: $75.00 per month.
Summer Winter
Demand Charge:
On-Peak $15.50 $11.50 in kW / month
Off-Peak $6.25 $6.25 in kW / month
Energy Charge: $0.0680 $0.0680 in kWh / month
On-Peak Demand: Actual demand during On-Peak Periods
On-Peak Period: 3:00 PM -10:00 PM weekdays
Off-Peak Demand: Actual demand during Off-Peak Periods less On-Peak Demand
Off-Peak Period: All non On-Peak Periods
Summer Rate: Applicable during the five monthly billing periods of June October.
Winter Rate: Applicable during the seven monthly billing periods of November May.
Page 1 of 3
596
Off-Peak Demand Electric Service Rate
Rates are subject to application of Power Cost Adjustment (PCA).
Federal, state, and local taxes may apply.
Minimum Bill: Maximum billing demand during previous twelve months times 3.0% of the demand
charge, or the actual demand multiplied by the demand charge, whichever is greater plus $1.00 per kW
per month of excess transformer capacity requested by customer.
Determination of Billing Demand: The billing demand shall be the highest measured demand (corrected
for power factor if required) during any fifteen (15) minute period occurring in the current billing period.
But in no month shall the billing demand be greater than the value in kW determined by dividing the
kWh sales for the billing month by 75 hours per month. This billing adjustment applies only if the
Fluctuating Loads: Customers operating equipment having a highly fluctuating or large instantaneous
demand, such as welders and X-ray machines, shall be required to pay all non-betterment costs of
isolating the load from the balance of system so that the load will not unduly interfere with
service on lines. No motor larger than ten (10) HP (or 7.355 kW) will be allowed to be across-
the-line started without notification and written authorization from ERMU.
In addition, Customers who fail to provide adequate corrective equipment shall be required to own and
maintain their own transformers.
Power Factor Adjustment: For loads of 50 kW or more, or at the option of ERMU for loads of less than
50 kW, power factor adjustments will be made in the billing demand, when the power factor, as
factor, as
measured by electric department, is lower than 95%, the monthly demand charge may be
multiplied by the ratio 95% divided by the measured power factor, or at option, the power
Billing and Terms of Payment: See ERMU Service Policies Policy (Billing Due Dates, and Penalties and
Delinquent Notices.)
Terms and Conditions:
1.Usage may be fractionalized on the actual days of service for application of a change in rate.
2.Service will be furnished pursuant to rules.
3.Extensions made for service under this schedule are subject to the provisions of rules
governing Extension of Service and Facilities.
4.The rates set forth herein may be modified by the amount of any governmental changes
imposed and levied on transmission, distribution, production, or the sale of electrical power.
5.Exceptions by management approval only.
Page 2 of 3
597
Off-Peak Demand Electric Service Rate
Adopted December 17, 2019
Effective January 1, 2020
Page 3 of 3
598
COMMERCIAL ALL ELECTRIC WITH GROUND SOURCE HEAT PUMP SERVICE RATE
Available: Within Elk River Municipal Utilities (ERMU) established service territory.
Applicable: To commercial customers having a single meter that includes a ground source heat pump
(GSHP) in excess of 50 kW but no more than 150 kW in aggregated name plate capacity of the GSHP
equipment (condensers and pumps).
Character of Service: AC, 60 cycles, 120/240 volts, three wire, and three-phase.
Special Conditions: This Program is available to commercial customers. A GSHP will be the only central
heating and/or cooling system for the commercial work spaces. Commercial structures that are
classified as Utility and Miscellaneous Group U by the International Code Council are not eligible for this
rate. GSHPs that qualify for this program will not be interrupted. A GSHP paired with another heating
source such as natural gas, fuel oil, or propane may qualify for the Dual Fuel Program.
To qualify for the special rate, the customer shall provide:
1.The GSHP is the only heat source. Only closed loop GSHPs are eligible for this rate beginning
September 1, 2016.
2.ERMU and the customer will agree on a meter location prior to the meter socket installation.
3.Commercial customers may have a separate meter to determine the energy and demand of the
GSHP. Electric usage for the non-heating/cooling energy use of the building may be metered and
priced using the appropriate rate (demand, or non-demand) schedule.
4.Accommodations for a meter and associated wiring installed according to the applicable
electrical codes and will be installed by a qualified electrician.
5.Inspection by a State certified inspector and representative of ERMU.
6.Customers on this rate will not be eligible for the Cycled Air Conditioning or Dual Fuel Programs.
Meter to be accessible to our service department at any time.
Ground Source Heat Pump Service Rate:
Basic Monthly Electric Charge: $30.00 per month
Summer Winter
$.0909 / kWh $.0909 / kWh
Summer Rate: Applicable during the five monthly billing periods of June October.
Winter Rate: Applicable during the seven monthly billing periods of November May.
Rates are subject to application of Power Cost Adjustment (PCA).
Page 1 of 2
599
Commercial All Electric with Ground Source Heat Pump Service Rate
Federal, state, and local taxes may apply.
Minimum Bill: Basic Monthly Electric Charge.
Billing and Terms of Payment: See ERMU Service Policies Policy (Billing Due Dates, and Penalties and
Delinquent Notices.)
Terms and Conditions:
1.Usage may be fractionalized on the actual days of service for application of a change in rate, or
changing from summer to winter or from winter to summer rates.
2.Service will be furnished pursuant to rules.
3.Extensions made for service under this schedule are subject to the provisions of rules
governing Extension of Service and Facilities.
4.The rates set forth herein may be modified by the amount of any governmental changes
imposed and levied on transmission, distribution, production, or the sale of electrical power.
5.Exceptions by management approval only.
Adopted December 17, 2019
Effective January 1, 2020
Page 2 of 2
600
GROUND SOURCE HEAT PUMP PROGRAM RATE
Available: Within Elk River Municipal Utilities (ERMU) established service territory.
Applicable: To single family residences, non-demand and demand customers receiving service under
another rate, who add a second meter for any of the following controlled loads:
Ground Source Heat Pump Rate: This Program is available to residential and commercial customers. A
ground source heat pump (GSHP) is a central heating and/or cooling system for residential living spaces
or commercial work spaces. Residential living spaces will meet all the applicable Minnesota state
building codes. Commercial structures that are classified as Utility and Miscellaneous Group U by the
International Code Council are not eligible for this rate. This program is available to residential or
commercial customers with a GSHP as their sole heat source. GSHPs that qualify for this program will
not be interrupted. A GSHP paired with another heating source such as natural gas, fuel oil, or propane
may qualify for the Dual Fuel program.
To qualify for the special rate, the customer shall provide:
1.The GSHP is the only heat source. Only closed loop GSHPs are eligible for this rate beginning
January 1, 2016.
2.ERMU and the customer will agree on a meter location prior to the meter socket installation.
3.Commercial customers may have a separate meter to determine the load of the heat pumps.
Electric usage for the remainder of the building will be metered and priced using the
appropriate rate (Demand or Non-Demand).
4.Accommodations for a meter and associated wiring installed according to the applicable
electrical codes and will be installed by a qualified electrician.
5.Inspection by a State certified electrical inspector and a representative of ERMU.
ERMU shall provide:
1.All electric energy consumed by the primary electric heating system at $.0909 per kWh.
2.A meter socket to accommodate the meter in a mutually agreed to location.
3.A meter to measure electricity consumed by the electric heating system.
Rates are subject to application of Power Cost Adjustment (PCA).
Federal, state, and local taxes may apply.
Adopted December 17, 2019
Effective January 1, 2020
Page 1 of 1
601
ELECTRIC VEHICLE CHARGING RATES
Residential and Commercial Electric Vehicle Charging Rate
Available: Within Elk River Municipal Utilities (ERMU) established service territory.
Applicable: To single family residences, non-demand and demand customers receiving service under
another rate.
Electric Vehicle Charging Rate: This Program is available to all customers of ERMU that own an
electrically powered vehicle used for on road transportation. Charging of the vehicle can occur any time
but will be subject to on-peak and off-peak energy charges per hour daily. On-peak hours are Monday
through Friday between 10 AM and 10 PM. Off-peak hours are Monday through Friday between 10 PM
Independence Day, Labor Day, Thanksgiving Day, and Christmas Day).
To qualify for the special rate, the customer shall provide:
1.Electric vehicle charging station that is used for the sole purpose of charging electric vehicles.
This charging station must be 240 volt.
2.Customer is responsible for installation of the additional meter socket in a mutually agreed upon
location.
3.Inspection by a State Certified electrical inspector of all metering equipment and provide an
affidavit to ERMU when completed.
ERMU shall provide:
1.All on-peak electric energy consumed by the electric vehicle charging equipment will be at the
summer rate of $0.1270/kWh for the five monthly billing periods of June October, and the
winter rate of $0.1160/kWh for the seven monthly billing periods of November May.
2.All off-peak electric energy consumed by electric vehicle charging equipment will be at the rate
of $.0602/kWh.
3.This equipment will be available for charging at applicable rates 24 hours per day and is not
subject to any load control strategies.
4.Electric meter.
5.Final inspection prior to meter activation to ensure only qualified loads are being supplied
through the electric vehicle charging equipment.
Rates are subject to application of Power Cost Adjustment (PCA).
Federal, state, and local taxes may apply.
Page 1 of 2
602
Electric Vehicle Charging Rates
Public Electric Vehicle Charging Rate: This rate is available to anyone charging an electric vehicle or
plugin electric vehicle at a public electric vehicle charging station owned and operated by ERMU within
the ERMU service territory. All persons must have an active ChargePoint account or have the capability
to create a ChargePoint account prior to utilizing the charging equipment for an electric vehicle or plug-
in hybrid electric vehicle.
To charge at the public charging stations customers shall:
1.Utilize their existing ChargePoint account or create a new account using a credit or debit card
prior to charging the electric vehicle or plug-in hybrid.
ERMU shall provide:
1.Access to public electric vehicle charging stations located in the ERMU service territory.
2.The chargers will be either level two (240 volt) or DC Fast Charging (480 volt) charging
equipment.
3.Electric energy consumed at the level two charging stations will be at a rate of $0.1500 per kWh
at all times.
4.Electric energy consumed at the DC Fast Charging station will be at a rate of $0.2000 per kWh at
all times.
Federal, state, and local taxes may apply.
Adopted December 17, 2019
Effective January 1, 2020
Page 2 of 2
603
MORATORIUM EFFECTIVE FEBRUARY 14, 2017 ON THE FOLLOWING LOAD CONTROL PROGRAMS
ENERGY MANAGEMENT PROGRAM RATES
Available: Within Elk River Municipal Utilities (ERMU) established service territory.
Applicable: To single family residences, non-demand and demand customers receiving service under
another rate, who add a second meter for any of the following controlled loads:
Dual Fuel Space Heating Rate: This Program is available to residential customers only. A dual fuel space
heating system consists of an electric heating system and a secondary non-electric space heating system
both capable of heating the living space at design conditions. Interruptions of the electric heating
system will usually occur for up to 12 hours daily on peak winter days and a maximum of 400 hours per
heating season.
To qualify for the special rate, the customer shall provide:
1.An electric space heating system which can be interrupted by a single 5 amp rated relay.
2.A secondary non-electric space heating system capable of automatic start-up and continuous
operation upon interruption of the electric heating system.
3.Obtain a load control device furnished by ERMU.
4.Accommodations for a meter and load control device and associated wiring installed according
to the applicable electrical codes, and installed by a qualified electrician.
5.Inspection by a State certified electrical inspector and a representative of ERMU.
6.Radiant heat in the slab of the building qualifies for dual fuel, not electric thermal storage.
7.Dual Fuel is not allowed in garages, pole sheds, or any structure that does not confirm to the
residential building code.
8.Exceptions by management approval only.
ERMU shall provide:
1.All electric energy consumed by the primary electric heating system at $.0602 per kWh.
2.During peak load conditions, ERMU will turn customer controlled electrical heat off for extended
periods of time as stated above.
3.A meter to measure electricity consumed by the electric heating system.
4.A load control device and meter socket to accommodate the meter.
Rate is subject to application of Power Cost Adjustment (PCA).
Federal, state and local taxes may apply.
Page 1 of 3
604
MORATORIUM EFFECTIVE FEBRUARY 14, 2017 ON THE FOLLOWING LOAD CONTROL PROGRAMS
Energy Management Program Rates
Electric Thermal Storage (ETS) Space Heating Rate: This Program is available to all ERMU customers.
An ETS space heating system is designed to store heat produced by electricity generated during eight
off-peak hours for use in heating during the remaining on-peak hours daily. Off-peak hours typically
occur between 11 PM and 7 AM. Qualifying ETS configurations may be central storage furnaces, room
storage heaters or slab (deep heat) systems including combinations of same.
To qualify for the special rate, the customer shall provide:
1.An ETS space heating system listed by UL or some other nationally recognized testing agency
which can be interrupted by a single 5 amp rated relay.
2.Obtain a load control device from ERMU.
3.Accommodations for a meter and load control device and associated wiring installed according
to the applicable electrical codes, and installed by a qualified electrician.
4.Inspection by a State certified electrical inspector and a representative of ERMU.
ERMU shall provide:
1.All electric energy consumed by this ETS system at $.0463 per kWh.
2.This equipment will be energized only for 8 off peak hours daily. Additional on-time is provided
on weekend days and holidays.
3.A meter to measure electricity consumed by the ETS space heating system.
4.A load control device which will automatically control ETS space heating system during on-peak
hours.
Rate is subject to application of Power Cost Adjustment (PCA).
Federal, state, and local taxes may apply.
Electric Thermal Storage (ETS) Water Heating Rate: This Program is available to all ERMU customers.
An ETS water heater is designed with extra storage capacity to provide total domestic hot water needs
from electricity consumed only during eight off-peak hours daily. Off-peak hours typically occur between
11 PM and 7 AM. Qualifying ETS configurations may be a large single tank, dual tanks plumbed in series,
or an electric and non-electric tank plumbed in series with the electric placed on the cold water side.
Electric water heater must have an energy factor of .91 or more and a minimum of 80 gallons of storage
capacity.
To qualify for the special rate, the customer shall provide:
1.An ETS water heating system which can be interrupted directly by a single 30 amp rated relay.
2.Obtain a load control device from ERMU.
3.Accommodations for a meter and load control device and associated wiring installed according
to the applicable electrical codes, and installed by a qualified electrician.
4.Inspection by a State certified electrical inspector and a representative of ERMU.
5.This rate is not available for hot water use in any production process for Commercial and
Industrial users.
Page 2 of 3
605
MORATORIUM EFFECTIVE FEBRUARY 14, 2017 ON THE FOLLOWING LOAD CONTROL PROGRAMS
Energy Management Program Rates
ERMU shall provide:
1.All electric energy consumed by the ETS water heater at $.0463 per kWh.
2.This equipment will be energized only for 8 off-peak hours daily.
3.A meter to measure electricity consumed by the ETS water heater.
4.A load control device and meter socket to accommodate the off-peak meter.
Rate is subject to application of Power Cost Adjustment (PCA).
Federal, state, and local taxes may apply.
Cycled Air Conditioning: This Program is available to all customers served by ERMU who have central
air conditioners. Program participants must allow installation of a utility supplied load control device so
air conditioning demand can be reduced at critical times. This Program is subject to the following terms
and conditions:
1.The Customer must have a conventional central air conditioner, ASHP or GSHP, of at least 2
tons capable of being interrupted with a 5 amp relay.
2.ERMU will furnish the load control device and pay to have it installed by a licensed
electrician. Separate metering is not required.
3.The Customer must allow access for installation of the load control device during normal
business hours.
4.The Customer must allow access for load control maintenance and compliance inspections
by ERMU personnel during normal business hours.
5.Customers must agree to allow ERMU or its designee to remotely cycle their central air
conditioner, ASHP or GSHP, off for approximately 15 minutes out of each 30 minute period
at critical peak use times during the cooling season (May through September). Except for
extreme emergencies, duration of said control will not exceed 6 hours per day and more
than 200 hours total per cooling season.
6.Customers who elect to participate in this Program must remain on it for at least one
cooling season or part of the load control installation costs may be assessed to the
customer.
7.Customers with central air conditioners, ASHP or GSHP, that are grossly oversized for the
conditioned space will not be allowed to participate. Such systems do not provide ERMU
sufficient load reduction relief at critical peak use times.
8.Cycled AC Program participants will receive a $3 per month credit for allowing ERMU to
interrupt their air conditioners as outlined above. Such payments will be provided in the
form of a bill credit during the five monthly billing periods of June October.
Adopted December 17, 2019
Effective January 1, 2020
Page 3 of 3
606
MORATORIUM EFFECTIVE JUNE 1, 2014
DISPERSED GENERATION/INTERRUPTIBLE LOAD PROGRAM RATE
Available: Within Elk River Municipal Utilities (ERMU) established service territory.
Applicable: Existing Customers, or to new Customers receiving all electrical power from ERMU and with
demands between 100 kW and 1,500 kW of connected load. Customers with on-site generation greater
than 1,500 kW may also qualify, but special terms and conditions may apply on a case by case basis.
Customer must agree to operate on-site generation and/or limit load to a mutually agreed to
Predetermined Demand Level (PDL) upon notification by ERMU or its designated agent. Customer must
be served by ERMU under the Demand Electric Service Rate. Customer must execute a Dispersed
Generation Agreement or Interruptible Service Agreement to participate in either program. Customer is
subject to the terms and conditions of the applicable Agreement. Not applicable to resale, standby or
auxiliary service.
Special Conditions: Customer must conduct normal business practices between the hours of 3:00 PM to
10:00 PM, Monday through Friday. Customer must provide access to a phone line or reimburse ERMU
for all costs associated with providing program interruption notification and remote metering needs.
Customer must have the means to operate on-site generation and/or reduce load to the PDL within 30
minutes following notification by ERMU or its agent. Credits apply only during months in which the
Customer is fully operational.
Customer represents and warrants that interruptible load of at least 100 kW shall be available for
interruption upon request by ERMU or its designated agent twenty-four hours per day, seven days per
week, three hundred sixty five day per year in order to receive credit.
Dispersed Generation/Interruptible Credits:
ERMU shall compensate Customer for load interruptions maintained at or below the PDL when
requested by ERMU or its designated agent, at the rates indicated below:
Monthly Credit/Kw*
Summer (June, July, and Aug) $14.00 per kW
Winter (Dec, Jan, and Feb) $10.00 per kW
Spring/Fall (Mar, Apr, May, Sept, Oct, Nov) $6.00 per kW
*Credit applies only during months in which Customer coincidental demand is at least 100 kW over the
PDL.
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MORATORIUM EFFECTIVE JUNE 1, 2014
Dispersed Generation/Interruptible Load Program Rate
interrupt is given, the difference between Custo
In the event that participating customers are not controlled during the monthly coincidental billing peak
demand hour, the customer will receive applicable demand credits only for metered demand that
exceeds the PDL and is greater than 100 kW. The demand credit is based on the applicable rates above
to the kW difference between the metered demand and the PDL using hourly interval meter data
measured one hour prior to the monthly coincidental billing peak demand hour.
In the event the participating customer is not operating at the time of the coincidental billing peak there
is no credit calculated in that month. The customer must be operating at least one hour prior to the
coincidental billing demand peak or the time designated for interruption to receive credit.
Example 1: Notice for disconnect or interruption is given at 11:00 a.m. for disconnect or
interruption at 3:00 p.m. The participating customer begins shut down at 2:30 and has a peak
demand for that month on the day of the interruption at 2:15 with a total load of 350 kW. The
customer has a PDL of 50. For this example the participating customer would receive a credit
for the d
kW). The customer would receive a credit for the 300 kW reduction times the seasonal rate
indicated above.
Example 2: There is no notice to disconnect or interrupt for this example month. The
coincidental billing peak occurs on a Tuesday night at 11:00 p.m. The customer had a demand
of 45 kW at the time of the coincidental billing peak (11:00 p.m.). In months with no notice the
difference between the participating Custom
(50 kW) shall be used to calculate the monthly credit. The difference between the coincidental
billing peak and PDL in this example is -5. Since the participating customer was not operating
and did not have any demand in excess of 100 kW to interrupt there is no credit given for this
month.
not at least 100 kW, no credit will be given. If the difference b
demand and the PDL remains less than 100 kW for two or more consecutive months, a new PDL may be
established or ERMU shall have the right to terminate the Dispersed Generation or Interruptible Service
Agreement.
If Customer fails to interrupt load down to the PDL for the specified length of time of the control period
in any calendar month a $5.00/kW demand penalty will be added to the Customers bill. The demand
penalty will be determined using the maximum uncontrolled kW demand, defined as the highest hourly
interval above the PDL recorded during all control periods in the billing month. The Customer will not
receive the monthly credit for that month or any succeeding months until performance has been
demonstrated to the satisfaction of ERMU personnel. If Customer fails to perform more than two times
in any calendar year, ERMU reserves the right to terminate the Agreement.
Adopted December 17, 2019
Effective January 1, 2020
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STREET/SECURITY LIGHT SERVICE RATE
Available: To any customer meeting Elk River Municipal Utilities (ERMU) criteria for service under this
schedule, and whose lighting needs are not being furnished under any other schedule. Installation costs
will be determined by ERMU per the Utilities Fee Schedule or on a time and materials basis.
Applicable: As determined by ERMU, but generally to non-metered roadway and area lighting.
Character Of Service: 120/240 volts, AC, as available.
Street/Security Light Service
Federal, state, and local taxes may apply.
Type Monthly Rate Per
Fixture
Standard Low Output (<249 Watt HPS, <74 Watt LED) $10.009.00
Standard Medium Output (250-399 Watt HPS, 75-124 Watt LED) $16.0015.00
Standard High Output (400 Watt or larger HPS, 125 Watt or larger LED) $21.00
Standard Low Output with Decorative Pole (<74 Watt LED) $18.00
Decorative Medium Output with Decorative Pole (75-124 Watt LED) $24.00
Ownership of Equipment: ERMU will install, own, and operate the lights, including fixtures and control
equipment, unless otherwise agreed upon by ERMU and the Customer.
Lamp Replacements: Lamp replacements will be made by ERMU.
Billing and Terms of Payment: See ERMU Service Policies Policy (Billing Due Dates, and Penalties and
Delinquent Notices.)
General Terms and Conditions Applicable To Non-Metered Lighting Service:
1.Area lighting installed on ERMU poles shall not be of the type that interferes with climbing
room, work space, or wire clearance as defined by the National Electrical Safety Code and is to
be installed below the secondary line and service drops, all per ER specification.
2.All area lights installed under this schedule shall be equipped with a photo-electric control which
will limit the hours of illumination from dusk to dawn (approximately 4,400 hours per year).
3.The rates set forth herein may be modified by the amount of any governmental changes
imposed and levied on transmission, distribution, production, or the sale of electrical power.
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Street/Security Light Service Rate
4.Exceptions by management approval only.
Adopted December 17, 2019
Effective January 1, 2020
Page 2 of 2
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WATER SERVICE RATES
Available: To all customers who have municipal water service available at their property, lying within
the corporate limits of the City of Elk River.
Special Conditions: Each customer served by one meter. Multiple living entities, such as apartments,
may be served by a combined meter upon approval of the Elk River Municipal Utilities (ERMU) and
acceptance of applicable charges.
Special Charges: A basic monthly water charge shall be applied to each meter based on the meter size
according to the schedule below, and is separate from any water use. Included in the basic monthly
water charge is $0.81 that is collected on a monthly basis from each service connection (excluding
irrigation only accounts) to recover the total annual cost of $9.72 for the State of Minnesota Safe Water
Testing Program (Minnesota Statutes 144.3831).
Water Rates:
stndrd
BASIC MONTHLY 1 TIER 2 TIER 3 TIER
METER TYPE CHARGE Cost per 1000 Cost per 1000 Cost per
gallons gallons 1000 gallons
Residential $9.40 $1.89 $3.50 $4.00
Commercial ¾ $11.28 $1.89 $3.50 $4.00
Commercial 1 $12.55 $1.89 $3.50 $4.00
Commercial 1 ¼ $13.81 $1.89 $3.50 $4.00
Commercial 1 ½ $15.06 $1.89 $3.50 $4.00
Commercial 2 $20.07 $1.89 $3.50 $4.00
Commercial 3 $43.89 $1.89 $3.50 $4.00
Commercial 4 $60.28 $1.89 $3.50 $4.00
Commercial 6 $87.79 $1.89 $3.50 $4.00
Commercial 8 $119.15 $1.89 $3.50 $4.00
Commercial Irrigation
Seasonally or $20.07 $3.50 $4.00
Permanently Installed
Federal, state, and local taxes may apply.
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Water Service Rates
Residential Rate Tier Definition:
First Tier Rate = 0 9,000 gallons per month.
Second Tier Rate = Between 9,000 and 15,000 gallons per month.
Third Tier Rate = Above 15,000 gallons per month.
Commercial Rate Tier Definition:
First Tier Rate = 0 monthly consumption.
Second Tier Rate riod average monthly
40,000 gallons.
Third Tier Rate
consumption + 40,000 gallons.
Winter Measurement Period Definition: December April billing cycles.
the Tier amount, the First Tier rate shall be utilized until a minimum of 3 months history is established.
Commercial irrigation is not eligible for First Tier Rate as there is no winter use.
Minimum Bill: Basic monthly water charge plus any charges applicable to multiple living entities.
Billing and Terms of Payment: See ERMU Service Policies Policy (Billing Due Dates, and Penalties and
Delinquent Notices.)
Adopted December 17, 2019
Effective January 1, 2020
Page 2 of 2
612
2020 Utilities Fee Schedule
ELECTRIC
New Residential Electric Connection - Developer - Lot with ERMU water service$475.00
New Residential Electric Connection - Developer - Lot without ERMU water service$575.00
New Residential Electric Connection - Builder$875.00
New Wire Footages over 200' (per foot)$4.00
New Service Frost Trenching (per foot)$5.00
New Commercial & Industrial Electric Connection50%
Service Upgrades or Additions for Existing Customers100%
Minimum Temporary Electric Service Fee - Existing Transformer$150.00
Minimum Temporary Electric Service Fee - Without Existing Transformer$500.00
Street Light - 30' Decorative Pole with 6' Arm and Cobra Fixture$2,700.00
Street Light - 23' Decorative Pole with Cobra Fixture$1,800.00
Street Light - 14' Decorative Pole with Cobra Fixture$4,100.00
Street Light - 14' Decorative Pole with Acorn Fixture$5,300.00
Security Light - Wood Pole with Fixture$975.00
Security Light - Existing Pole$125.00
Pole Attachment Fee (per pole)$6.50
Manual Meter Reading Fee (per month)$10.00
WATER
Water Access Charge = Water Connection Charge + Water Availability Charge$3,764.00
Water Connection Charge (Per Plumbing Unit) - Builder$3,396.00
Water Availability Charge (Per Plumbing Unit) - Developer$368.00
Abandoned Water Service$2,500.00
Hydrant Water Sales - Rental (per week)$50.00
Hydrant Water Sales - Units (per 1000 gallons)$4.00
Deposit for 5/8" Hydrant Meter$150.00
Deposit for 2 1/2" Hydrant Meter$1,000.00
Private Hydrant Maintenance Program Monthly Fee$5.00
Manual Meter Reading Fee (per month)$10.00
ADMINISTRATIVE
Administrative Fee for Continued Submission of Checks After No-Check Notice Given$20.00
Billable Cost of Materials Markup15%
Billable Labor Markup55%
Billable Vehicle / Equipment (per employee per hour)$30.00
Commerical Application Fee$20.00
Electric Service Disconnect/Trip Fee - Meter Technician $50.00
Electric Service Disconnect/Trip Fee - Line Crew$150.00
Water Service Disconnect/Trip Fee - Water Operator$100.00
Energy Audit$150.00
Meter Tampering Fee$250.00
Meter Testing Fee$50.00
NSF Fee$20.00
Penalty Amount10%
Photocopies (per page)$0.25
Red Tag Handling Fee$20.00
Adopted by the Utilities Commission on November 12, 2019 under authority per Minnesota Statute 412.361
613