4.3 ERMUSR 04-13-2021UTILITIES COMMISSION MEETING
TO:FROM:
ERMU Commission Melissa Karpinski –Finance Manager
MEETING DATE: AGENDA ITEM NUMBER:
April 13, 2021 4.3
SUBJECT:
2020 Utilities Performance MetricsandIncentive Compensation Distribution
ACTION REQUESTED:
Award the Performance Metrics and Incentive Compensation Distribution of 1.7% to qualifying
employees per the terms of the policy.
BACKGROUND:
The Commission adopted a Performance Metrics program in December 2012, for
implementation on January 1, 2013, and revised January 14, 2020. This program was based on
) program with the
the American Public Power Association’s Reliable Public Power Provider (RP
3
addition of financial goals. As defined by policy, this company performance basedprogram is
designed to incentivize employee commitment towards the company’s success. “The successful
performance of ERMU is measured in terms of the Utilities’ ability to meet our strategic goals
and mission. By improving our efficiency and level of performance in meeting our strategic goals
and mission we can improve the delivery of value to our customers.” Divided into categories
representing core values of the company and again into sub-categories that are quantifiable,
this program is designed to track goals that require the companywide support ofemployees to
continually achieve. When the employees work together as a team to achieve these goals, the
company recognizes a corresponding increase in value to our customers.
DISCUSSION:
The performance metrics were monitored and provided as updates to the employees and
commission on a quarterly basis throughout the year. The program works exactly as intended
as we witness employee motivation and efforts align to improve company performance for
deficient criteria. Attached arethe finalized results of the score card on which the employees
have successfully achieved all the company performance metrics targets, except for two (the
Water Loss and Employee Turnover metrics). Per the policy, a multiplier of 85% would be used
and qualifying employees would be eligible for a 1.7% distribution.
FINANCIAL IMPACT:
Budgeted item.
ATTACHMENTS:
ERMU Policy – G.4g1 – Performance Metrics and Incentive Compensation
ERMU Performance Metrics and Incentive Compensation Policy Score Card - 2020
______________________________________________________________________________
Page 1 of 1
231