1.6 ERMUSR 04-14-2020UTILITIES COMMISSION MEETING
TO:FROM:
ERMU Commission Mike Tietz– Technical Services Superintendent
MEETING DATE: AGENDA ITEM NUMBER:
April14, 2020 1.6
SUBJECT:
American Public Power Association RP 3 Designation
ACTION REQUESTED:
Receive the APPA RP 3 Designation Award
BACKGROUND \\ DISCUSSION:
I am honoredto announce that Elk River Municipal Utilities(ERMU)has received national
recognition from the American Public Power Association (APPA) for being a Reliable Public
Power Provider (RP 3). The RP 3 designation recognizes public power utilities that demonstrate
proficiency in four key areas: reliability, safety, workforce development, and system
improvement. Criteria within each category are based on sound business practices and
represent a utility-wide commitment to providing safe and reliable electricity.
Currently, 278 of the nation's over 2,000 public power utilities hold an RP 3 designation, and
ERMU is just one of the 114 utilities to earn an RP 3 designation this year. There are three
designation levels based on scoring: Gold (score of 80-89%), Platinum (score of 90-97%), and
Diamond (score of 98-100%). ERMU is one of 39 utilities who received a Platinum designation
with a score of 95%. This designation will last for three years and moves us from a Gold
designation.
3 designation is a sign of a utility's dedication to efficiently operating a safe and
Receiving an RP
reliable electric distribution system. Being recognized by the RP 3 program demonstrates to
community leaders, governing board members, suppliers, and service providers a utility’s
commitment to its employees, customers, and community. This designation means that our
customers receive some of the best possible service in the country.
It also shows that we are committed to keeping costs as low as possible, while at the same
time, keeping customers and employees as safe as possible. It demonstrates ERMU’s
commitment to constantly improving best practices and raising the bar for other electric service
providers. It means that we hire the best people, who are dedicated to doing an exceptional job
for ERMU and our community.
ERMU is proud of our reliability performance. For example, in 2019, the average ERMU
customer would have experienced only 25.4 minutes without power, while the average electric
customer within our region would have experienced 75.2 minutes of power interruption. ERMU
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conducts annual reviews of our system to identify areas that may need improvement and
performs ongoing vegetation management activities toensure that trees do not grow into
overheadlines, causing serviceinterruptions. We are finalizing our disaster recovery plan and
conducting exercises to test that plan. We are also implementing the best cyber security
practices in the industry to prepare for potential threats.
ERMU takes safety very seriously. Over the three-year review period, employees maintained a
consistent overall record of safety. Through their deliberate emphasis on preventing accidents,
ERMU employees have been able to create a culture that focuses on safety. During our monthly
safety trainings, daily tailgate meetings, and on-site job briefings, working safely is always on
every employee’s mind. All new employees are required to go through our initial safety training
as part of their on-boarding process. All incidents and near misses are discussed to make
everyone aware of the hazard and to determine steps to prevent a similar incident in the
future. In 2019, ERMU established the Safety Training Workgroup to provide perspective from
all departments with the goal of improving our safety training program and safety culture.
ERMU is committed to workforce development. Throughout the company, employees are
encouraged to network with others in our industry by attending seminars, conferences, job
related trainings, etc., so they can keep up to date on best standards and practices within the
industry. Recently identified in the employee survey, the need for employee leadership training
has been supported by the commission through a 2020 initiative. This type of development is
why ERMU has such exceptional employees. We could not have received this award without
our employees being truly committed to doing such an excellent job.
ERMU is dedicated to continuous system improvement. With the completion of acquiring
service territory from Connexus in 2019, ERMU will focus on improving facilities within these
areas to bring them up to ERMU standards. Constant inspection and maintenance of equipment
helps us to determine upcoming projects and scope. ERMU maintains a comprehensive long-
term capital project plan to help identify our needs well into the future. Budget planning is
conducted on an annual basis and presented to the Commission for their approval. We perform
cost of service studies every 5 years to preserve the financial health of the utility along with
maintaining adequate financial reserves to mitigate risk.
The staff at ERMU is proud to serve its community. We will continue to look for ways to
improve and achieve the best results for our customers by providing high quality service at
competitive rates.
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