6.1b ERMUSR 03-10-2020UTILITIES COMMISSION MEETING
TO:FROM:
ERMU Commission Theresa Slominski –Administrations Director
MEETING DATE: AGENDA ITEM NUMBER:
March 10, 2020 6.1b
SUBJECT:
Staff Update
ACTION REQUESTED:
None
DISCUSSION:
The auditors from Abdo, Eick, and Meyers werehere February 27-28, 2020 for our
annual audit. All went well and there were no findings to report, or additional entries
necessary (other than the planned pensionand OtherPostemploymentBenefitsentries
the auditors provide). The auditorsstated Melissa and her staff did a great job, as
expected. The final audit report will be presented at the April commission meeting.
We received some additional information on the Midcontinent Independent System
Operator (MISO) reporting timelines since the Federal refunding order has been issued
to reduce the rate of return on equity (ROE) for transmission assets from 12.38% to
9.88%. This is for all future returns, and from previous returns of 9/28/16 - 11/21/19.
2020 estimated projections for ERMU are approximately a $7,000 reduction in revenue
as a result of the reduced ROE. The best guess is that it would be $7,000 or less per year
in refunds to be paid for the prior years of 2016-2019. As the previous years are looked
at and recalculated, refund orders will be issued starting early 2021, with all refunds to
hopefully be completed late 2022. All of this will be coordinated through Central
Minnesota Municipal Power Agency (CMMPA), as we report to them and they file with
MISO on our behalf.
Mobile Workforce/AppSuite live date implementation was the week February 4-6, 2020.
We are continuing to work through minor issues with our project manager and will be
released to general support mid-March.
We have everything submitted to NISC for the bill redesign and now they will be
programming for about two months.
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