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5.2 ERMUSR 03-10-2020UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Michelle Canterbury Executive Administrative Manager MEETING DATE: AGENDA ITEM NUMBER: March 10, 2020 5.2 SUBJECT: 2019 Annual Report ACTION REQUESTED: Receive the 2019 Annual Report BACKGROUND: In 2018 the annual report was evaluated for its value, the process in which it was produced and distributed, and the timing and relevance of the information. At that time, staff determined that a smaller more concise report would lower printing and distribution costs, making it economically feasible to distribute the report to all customers; this process was implemented in 2018. At that time, it was also determined that it was possible to produce the annual report earlier in the year so the information would be more relevant from a timing perspective; with this process to begin in 2019. DISCUSSION: Staff is pleased to present the 2019 Annual Report. This years report takes a moment to reflect on the completion of the electric service territory transfer and the positive impact it has had on the community we serve. It also highlights how our values have shaped the service we provide, the ways in which we stay $1.78 million back into the pockets of our customers. The 2019 annual report will be printed and distributed to all ERMU customers with their March billing statement. The report will also be available digitally on ERMU website and will be promoted throughout our social media sites. ATTACHMENTS: 2019 Elk River Municipal Utilities Annual Report ______________________________________________________________________________ Page 1 of 1 69 ANNUAL REPORT 2019 70 A COMMITMENT TO SERVING OUR COMMUNITY A LETTER FROM THE GENERAL MANAGER Since the beginning of electric utility services more than a century ago, our community has always been divided between service providers. In 2019, we reached a major FYJTUJOH milestone, eliminating that divide with the completion UFSSJUPSZ of a multi-year electric service territory transfer initiative 20 percent in four years. The vision to invest in electric service territory by previous Elk River Municipal Utilities governance and leadership has helped to build the foundation This foundation of providing electric services to our whole community positions our utility for the future and was a critical component for a 5 percent electric rate reduction in 2019 and no rate change for 2020. we serve: our consumer-owners, FSNV our customers, our community. FMFDUSJD!TFSWJDF! - Troy Adams, P.E., UFSSJUPSZ!FYQBOTJPO General Manager COMPETITIVE Providing our community with the best value for the to reduce prices while increasing our service territory multiyear initiatives. Another crucial element of our rate reduction was the competitive pricing of our wholesale power provider, the Minnesota Municipal Power Agency Reducing our rates by 5% in 2019 put approximately $1,780,000 back into the pockets of our consumer-owners. and appropriate margins. 71 A SERVICE BASED ON VALUES QUALITY describe the quality of services we provide to our community. Accordingly, ERMU was recognized in 2019 by the American Public Power Association outperforming nationwide electric industry averages. 2019 data reports a mean outage time of 10 minutes for ERMU customers, 125 minutes shorter than the national standard. 81% reduce weather- and nature-related outages. SAFETY Our daily work is founded upon a culture of safety. This helps ensure that our employees are safe while serving the community and that our customers are more secure while living in their community. Protecting the water used in homes and businesses requires daily attention and care. ERMU regularly monitors mineral levels in the In 2019,Source water, removes potentially harmful elements, and Water Protection Award from the Minnesota Department of treats the water to ensure quality and safety. Health and a recipient of the Water Fluoridation Quality Award from the Centers for Disease Control and Prevention. COMMUNICATION changed the value that we place on regular engagement with our consumer-owners. Through this growth opportunity, we continue to utilize direct, personal connections while pursuing new methods to reach customers in a timely manner, such as social media and other electronic communications. with additional resources, including a full-time 2,500 customers who joined us through the territory transfer. 72 INTEGRITY In everything ERMU does, we know that we are accountable for the impact on our customers and on the environment. In 2019, ERMU was named a Smart Energy Provider by APPA for its commitment 290 customers signed up for their Clean Energy Choice program, which provides power from 100 percent renewable resources. Our Conservation & Key Accounts In 2019,ERMU provided customers with a total of $160,000 reduction of an estimated 2.9 million kWh of energy use. understanding of opportunities to use resources better. COMMUNITY CONNECTIONS Night to UniteHometown Solar at City Hall Hanging Flags on Memorial Day The Tom Bovitz Memorial Scholarship Award 13069 Orono Parkway, PO Box 430 | Elk River, MN 55330 | 763.441.2020 | www.ERMUMN.com | Connect with Us: 73