6.1a ERMUSR 08-10-2021______________________________________________________________________________
Page 1 of 1
UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Theresa Slominski – General Manager
MEETING DATE:
August 10, 2021
AGENDA ITEM NUMBER:
6.1a
SUBJECT:
Staff Update
ACTION REQUESTED:
None
DISCUSSION:
• Second quarter unaudited financial statements from Minnesota Municipal Power
Agency (MMPA) are attached.
• As mentioned in my mid-month update, MMPA is anticipating a rate increase in 2022.
The projected 2022 annual average price for on-peak energy is 25% higher than MMPA’s
2021 budget price, an approximate $10 million increase to MMPA. This is projected to
be a 2.5% cost increase to the members. We are already evaluating our purchased
power projections for 2022 to determine what rate increase ERMU may need to have as
a result. MMPA is also projecting to increase the Clean Energy Choice for Business rate,
from $0.001 per kWh to $0.002 per kWh in 2022.
• To further improve our understanding of staff needs and wants, our HR Generalist,
Megan Zachman, will be conducting “stay interviews” with all staff members. As
opposed to the common “exit interview,” the employee is engaged prior to departure to
learn what causes them to stay and what might encourage them to continue to stay.
The hope is to gather information on what we are doing right, and what we are doing
wrong, in terms of employee retention. The interviews will be conducted by Megan,
one-on-one in the month of August.
• We continue to monitor information from the CDC and the Minnesota Department of
Health, noting the increase of COVID-19 cases in Minnesota. There are no changes to
protocol currently, we are just asking our employees to be cautious and reminding them
of the importance of self-monitoring their health.
ATTACHMENTS:
• MMPA Unaudited Financials – Q2 2021
88
Assets and Deferred Outflows of Resources
Current Assets
Cash and cash equivalents $ 53,537,057
Restricted cash and cash equivalents 8,421,575
Accrued interest receivable 79,052
Power sales and other receivables 16,524,255
Fuel inventory 636,700
Plant inventory - spares 3,680,074
Prepaid expenses 868,016
Total current assets 83,746,729
Noncurrent Assets
Capital assets
Electric generation assets 432,191,028
Land 10,214,092
Less: accumulated depreciation (164,612,588)
Property and equipment, net 277,792,532
Construction in progress 799,200
Total capital assets, net 278,591,732
Restricted cash, cash equivalents, and investments 10,935,765
Prepaid expenses 399,016
Future recoverable costs 51,328,634
Total noncurrent assets 341,255,147
Total assets 425,001,876
Deferred Outflows of Resources
Deferred outflows of resources - other 1,121,094
Total assets and deferred outflows of resources $ 426,122,970
Liabilities, Deferred Inflows of Resources and Net Position
Current Liabilities
Accounts payable and accrued liabilities $ 10,530,529
Accrued interest payable 1,896,887
Long-term debt due within one year 8,268,333
Capital lease liability due within one year 1,238,933
Total current liabilities 21,934,682
Noncurrent Liabilities
Long-term debt, net 176,673,482
Capital lease liability, net 14,627,033
Total noncurrent liabilities 191,300,515
Total liabilities 213,235,197
Deferred Inflows of Resources
Rate stabilization 28,671,000
Other 10,028,446
Total liabilities and deferred inflows of resources 251,934,643
Net Position
Net investment in capital assets 90,173,022
Restricted for debt service 8,421,576
Unrestricted 75,593,729
Total net position 174,188,327
Total liabilities and deferred inflows of resources and net position $ 426,122,970
Minnesota Municipal Power Agency
Statement of Net Position
As of June 30, 2021 - Unaudited
89
Operating Revenues
Power sales to members $ 74,608,916
Power sales to non-members 620,517
Total operating revenues 75,229,433
Operating Expenses
Power acquisition expense 30,478,060
Transmission 11,907,192
Other operating expenses 14,412,376
Depreciation 7,926,730
Total operating expenses 64,724,358
Operating income (loss)10,505,075
Nonoperating Revenues (Expenses)
Interest expense (3,727,471)
Investment income 208,624
Net (decrease) increase in the fair value of investments (152,544)
Other 63,000
Total nonoperating revenues (expenses), net (3,608,391)
Change in net position before future recoverable costs 6,896,684
Future Recoverable Costs (3,855,143)
Change in net position 3,041,541
Net Position, Beginning of Year 171,146,786
Net Position, June 30, 2021 $ 174,188,327
Minnesota Municipal Power Agency
Statements of Revenues, Expenses and Changes in Net Position
YTD June 30, 2021 - Unaudited
90