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5.3 ERMUSR 12-12-2021 Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Melissa Karpinski— Finance Manager MEETING DATE: AGENDA ITEM NUMBER: December 14, 2021 5.3 SUBJECT: 2022 Annual Business Plan (Budget, Schedule of Rates & Fees) ACTION REQUESTED: Adopt the 2022 Annual Business Plan BACKGROUND: In November, the preliminary 2022 Annual Business Plan was presented to the Commission. There have been some changes due to the finalizing of projects and expenses. The final highlights are discussed below. DISCUSSION: Electric Budget and Rates As discussed in November, we are proposing a 5% rate increase for 2022. Notable items in the electric budget for 2022 are: • 3%wage adjustment for Office, Field, and Management pay plan groups and a 2.8% wage adjustment for Line Worker pay plan group. • Conservative estimate for usage and growth. • 11%wholesale power rate increase. • Interest expense on bond for new field services building. • Administrative expenses for inventory assistant and new general manager to be filled in 2022. • Administrative expense for Travel and Training; Additional leadership training (all departments as identified in organizational effectiveness survey) and Management training (includes strategic planning). • Replacement of Bucket Truck#4. • Replacement of Dump Truck#7. • Purchase of a Bobcat, Forklift, and Sweeper. • Shared cost in the replacement for Vehicle #1 for Administration and Pickup Truck#2 for Technical Services. • Electric Service Territory acquisition loss of revenue for Areas 1&2, 3&4, 5&6, and 7&8 from reserves. • Highway 169 Redefine project from reserves. • Highway 10 substation design and construction from reserves. Page 1 of 2 74 • Advanced Metering Infrastructure (AMI) project from reserves. Water Budget and Rates As discussed in November, we are proposing a 2.5% rate increase for 2022. Notable items in the water budget for 2022 are: • 3%wage adjustment for Office, Field, and Management pay plan groups. • Conservative estimate for usage and growth. • Interest expense on bond for new field services building. • Administrative expenses for new general manager to be filled in 2022. • Administrative expense due to wellhead protection plan amendment. • Administrative expense for Travel and Training; Additional leadership training (all departments as identified in organizational effectiveness survey) and Management training (includes strategic planning). • Replacement of Pickup Truck#32. • Highway 169 Redefine project from reserves. • Shared cost in the replacement for Vehicle#1 for Administration and Pickup Truck#2 for Technical Services. • AMI project. Submitted for approval is the 2022 Annual Business Plan which includes the 2022 Budget and the 2022 Schedule of Rates & Fees. The 2022 fees were already approved by the Commission in November and are being presented here unchanged. The adoption of the 2022 Schedule of Rates & Fees through the adoption of the Annual Business Plan shall supersede and replace all previously adopted tariffs, rates, and fees. FINANCIAL IMPACT: Notable items discussed above. As previously discussed, we are proposing a rate increase of 5% for electric and 2.5%for water. ATTACHMENTS: • Proposed 2022 Annual Business Plan o 2022 Budget o 2022 Schedule of Rates & Fees Page 2 of 2 75 .,, Elk River __, Municipal Utilities 2022 Annual Business Plan 76 TABLE OF CONTENTS 2022 BUDGET • Summary of Budgets • Electric Revenue and Expense Budget • Water Revenue and Expense Budget • Electric Capital Budget • Administration and Technical Services Capital Budgets • Water Capital Budget • Training and Travel Budget • Dues and Subscriptions Budget • Conservation Improvement Program Budget 2022 SCHEDULE OF RATES & FEES • Residential All Electric Service Rate • Residential Electric Service Rate • Residential Clean Energy Choice Program Rate • Non-Demand All Electric Service Rate • Non-Demand Electric Service Rate • Demand All Electric Service Rate • Demand Electric Service Rate • Large Industrial Demand Electric Service Rate • Transmission Transformed Service Rate • Commercial Clean Energy Choice Program Rate • Off-Peak Demand Electric Service Rate • Commercial All Electric with Ground Source Heat Pump Service Rate • Ground Source Heat Pump Program Rate • Electric Vehicle Charging Rates • Energy Management Program Rates • Street/Security Light Service Rate • Water Service Rates • Fee Schedule 77 Elk River Municipal Utilities 2022 Budget 78 ELK RIVER MUNICIPAL UTILITIES SUMMARY OF YEAR 2022 BUDGETS ELECTRIC BUDGET SUMMARY 2022 ELECTRIC REVENUE $ 43,186,605 ELECTRIC EXPENDITURES (41,620,221) ELECTRIC NET FOR CAPITAL 1,566,384 3.63% 1,565,534 110%annual avg debt svc 3.63% DEBT RETIREMENT (1,055,000) PROMISSORY NOTE TO COUNTY (209,124) NET LESS DEBT PRINCIPAL PMTS 302,260 CAPITAL EQUIPMENT/CONSTRUCTION (6,153,305) FUND FROM RESERVES 500,000 * Highway 169 redefine FUND FROM RESERVES 1,000,000 * Hwy 10 Substation FUND FROM RESERVES 500,000 * AMI FUND FROM RESERVES 884,185 * Territory Acquisition Areas 1&2,3&4,5&6,7&8 Loss of Revenue BONDING - NET (2,966,860) DEPRECIATION 3,104,833 NET TO RESERVES 137,973 * Note that this is separate from above funding of draw on reserves WATER BUDGET SUMMARY 2022 WATER REVENUE $ 3,343,069 WATER EXPENDITURES (3,235,395) WATER NET FOR CAPITAL 107,674 3.22% 107,643 105%debt svc 3.22% DEBT RETIREMENT (320,000) NET LESS DEBT PRINCIPAL PMTS (212,326) CAPITAL EQUIPMENT/CONSTRUCTION (1,725,655) FUND FROM RESERVES 1,201,575 * Highway 169 Redefine BONDING - NET (736,406) DEPRECIATION 1,199,124 NET TO RESERVES 462,718 * Note that this is separate from above funding of draw on reserves *Currently,target reserves are met. 79 ELK RIVER MUNICIPAL UTILITIES ELK RIVER MINNESOTA 2022 ELECTRIC BUDGET 2022 Annual 2021 Annual 2020 Annual Electric Budget Budget Actual Revenue Operating Revenue Elk River 440.4411 ELECT SALES-ELK RIVER RESIDENTIAL 13,814,153 12,599,985 12,307,233 440.4412 ELECT SALES-ELK RIVER NON-DEMAND 3,349,199 3,009,962 2,858,321 440.4413 ELECT SALES-ELK RIVER DEMAND 20,053,948 18,759,264 18,141,843 Total for Elk River: 37,217,301 34,369,210 33,307,399 Otsego 440.4416 ELECT SALES-OTSEGO RESIDENTIAL 1,397,314 1,274,499 1,221,434 440.4417 ELECT SALES-OTSEGO NON-DEMAND 439,854 395,302 370,490 440.4418 ELECT SALES-OTSEGO DEMAND 1,147,858 1,075,452 999,382 Total for Otsego: 2,985,026 2,745,253 2,591,308 Rural Big Lake 440.4421 ELECT SALES-BIG LAKE RESIDENTIAL 210,671 192,155 182,865 440.4422 ELECT SALES-BIG LAKE NON-DEMAND 4,366 3,924 3,862 Total for Rural Big Lake: 215,037 196,078 186,728 Dayton 440.4431 ELECT SALES-DAYTON RESIDENTIAL 218,094 198,925 183,877 440.4432 ELECT SALES-DAYTON NON-DEMAND 38,348 34,464 33,896 Total for Dayton: 256,442 233,389 217,774 Public St&Hwy Lighting 440.4414 ELECT SALES-SEC LTS 250,000 244,000 250,174 Total for Public St&Hwy Lighting: 250,000 244,000 250,175 Other Electric Sales 440.455 SUB-STATION CREDIT 4,800 4,800 4,800 Total for Other Electric Sales: 4,800 4,800 4,800 Total for Operating Revenue: 40,928,605 37,792,730 36,558,183 Other Operating Revenue Interest/Dividend Income 460.4691 INTEREST&DIVIDEND INCOME 80,000 70,000 134,464 Total for Interest/Dividend Income: 80,000 70,000 134,465 Customer Penalties 470.4701 CUSTOMER DELINQUENT PENALTIES 235,000 - 42,555 Total for Customer Penalties: 235,000 - 42,556 LFG Project 470.4721 LFG PROJECT 836,000 1,186,307 1,141,482 Total for LFG Project: 836,000 1,186,307 1,141,482 Connection Fees 470.4702 DISCONNECT&RECONNECT CHARGE 220,000 145,000 160,186 Total for Connection Fees: 220,000 145,000 160,186 Misc Revenue 470.4703 MISC ELEC REVENUE-TEMP CHG 2,000 500 2,700 470.4704 STREET LIGHT 20,000 5,000 20,100 470.4715 TRANSMISSION INVESTMENTS 600,000 460,951 442,112 470.4722 MISC NON-UTILITY 90,000 60,000 87,365 470.4723 GAIN ON DISPOSITION OF PROPERTY - - 23,317 470.4739 PERA PENSION REVENUE - - 7,481 470.475 RENTAL PROPERTY INCOME - - 7,350 470.477 CONTRIBUTIONS FROM CUSTOMERS 175,000 100,000 174,556 470.478 CONTRIBUTIONS FROM GRANTS - - Total for Misc Revenue: 887,000 626,451 764,984 Total Other Revenue Total for Total Other Revenue: 2,258,000 2,027,758 2,243,673 Total Revenue 43,186,605 39,820,488 38,801,856 8.5% Expenses Purchased Power 540.5551 PURCHASED POWER 28,376,952 25,546,480 24,240,439 11.1%(2.5%Rate increase and EAC increase) Total for Purchased Power: 28,376,952 25,546,480 24,240,440 11.1% Operating&Mtce Expense 540.5461 OPERATING SUPERVISION 143,000 121,000 100,964 540.5471 DIESEL OIL FUEL 10,000 15,000 6,672 540.5472 NATURAL GAS 17,500 27,000 26,403 540.5483 ELECTRIC&WATER CONSUMPTION-PLANT 30,000 33,000 26,370 540.5484 PLANT SUPPLIES&OTHER EXPENSE 13,000 10,000 9,865 540.5491 MISC POWER GENERATION EXPENSE 8,000 7,000 5,747 540.5521 MAINTENANCE OF STRUCTURE-PLANT 15,000 19,000 12,406 540.5531 MTCE OF PLANT ENGINES/GENERATORS 25,000 20,000 16,224 540.5541 MTCE OF PLANT/LAND IMPROVEMENT 30,000 30,000 15,603 Total for Operating&Mtce Expense: 291,500 282,000 220,258 Landfill Gas 550.505 LANDFILL GAS PLANT PURCHASED GAS 151,794 182,000 177,007 Per contract 550.5051 LANDFILL GAS PLANT OPERATIONS&MTCE 415,187 518,725 526,092 550.5052 LANDFILL GAS PLANT ADMINISTATION 25,550 57,000 19,982 Cty bonus,utilities and atty fees 550.5053 LANDFILL GAS PLANT INSURANCE 19,950 20,000 18,797 550.5054 LANDFILL GAS PLANT MTCE 650 5,000 1,721 Total for Landfill Gas: 613,131 782,725 743,601 80 ELK RIVER MUNICIPAL UTILITIES ELK RIVER,MINNESOTA 2022 ELECTRIC BUDGET 2022 Annual 2021 Annual 2020 Annual Electric Budget Budget Actual Transmission Expense 560.562 TRANSMISSION MTCE AND EXPENSE 66,700 74,000 46,610 Total for Transmission Expense: 66,700 74,000 46,611 Distribution Expense 580.5801 REMOVE EXISTING SERVICE&METERS 2,500 2,000 2,143 580.5821 SCADA EXPENSE 44,000 42,800 42,057 580.5831 TRANSFORMER EXPENSE OH&URD 13,000 16,000 13,069 580.5851 MICE OF SIGNAL SYSTEMS 2,000 2,000 1,928 580.5861 METER EXPENSE-REMOVE&RESET 1,000 1,000 996 580.5871 TEMP SERVICE-INSTALL&REMOVE 2,000 2,000 3,049 580.5881 MISC DISTRIBUTION EXPENSE 280,000 275,000 217,068 580.589 INTERCONNECTION CARRYING CHARGE 2,416 2,416 2,416 Total for DistrIbution Expense: 346,916 343,216 282,730 Maintenance Expense 590.5911 MTCE OF STRUCTURES 30,000 27,500 25,672 590.5921 MTCE OF SUBSTATIONS 26,000 28,000 20,420 590.5922 MTCE OF SUBSTATION EQUIPMENT 69,000 57,000 17,044 590.5931 MTCE OF OH LINES/TREE TRIM 225,000 150,000 123,979 $140k contractors 590.5932 MTCE OF OH LINES/STANDBY 36,000 32,000 31,013 590.5933 MICE OF OH PRIMARY 170,000 160,000 169,229 590.5941 MTCE OF URD PRIMARY 165,000 155,000 136,565 590.5943 LOCATE ELECTRIC LINES 105,100 97,000 89,734 590.5944 LOCATE FIBER LINES 1,000 1,000 1,053 590.5951 MTCE OF LINE TRANSFORMERS 60,000 45,000 29,844 590.5961 MICE OF STREET LIGHTING 45,000 45,000 43,064 590.5962 MTCE OF SECURITY LIGHTING 10,000 10,000 10,951 590.5971 MTCE OF METERS 80,000 85,000 69,319 590.5972 VOLTAGE COMPLAINTS 10,000 10,000 7,385 590.5981 SALARIES TRANSMISSION&DISTRIBUTION 30,000 43,000 33,966 590.5985 ELECTRIC MAPPING 90,000 100,000 84,282 590.5991 MICE OF OH SECONDARY 25,000 20,000 19,657 590.5992 MICE OF URD SECONDARY 50,000 41,000 49,083 590.5995 TRANSPORTATION EXPENSE 240,000 225,000 184,805 Total for Maintenance Expense: 1,467,100 1,331,500 1,147,075 Depreciation&Amortization 595.8031 DEPRECIATION 2,436,698 2,437,374 2,228,703 595.8032 AMORTIZATION 668,135 668,135 668,135 Total for Depredation&Amortization: 3,104,833 3,105,509 2,896,839 Interest Expense 596.8071 INTEREST EXPENSE-BONDS 906,275 622,859 657,782 2021B Bonds 596.8075 INTEREST EXPENSE-DEFEASED BONDS - (3,317) (3,316) 597.8281 AMORTIZATION OF DEBT DISCOUNT (60,766) (48,152) (48,151)2021B Bonds Total for Interest Expense: 845,509 571,390 606,314 Other Operating Expense 597.8165 EV CHARGING EXPENSE 4,240 4,650 4,310 597.8213 LOSS ON DISPOSITION OF PROP(CAPITAL) 12,500 12,500 55 597.8263 OTHER DONATIONS 3,000 3,000 1,261 597.8265 MUTUAL AID - - 597.8302 PENSION EXPENSE 45,000 82,000 (71,847) 597.8303 OPEB EXPENSE - 45,000 33,324 597.8341 INTEREST EXPENSE-METER DEPOSITS 2,000 13,000 12,852 597.84 RENTAL PROPERTY EXPENSE - - 5,705 Total for Other Operating Expense: 66,740 160,150 (14,339) Customer Accounts Expense 900.9021 METER READING EXPENSE 42,100 34,000 38,938 900.903 DISCONNECT/RECONNECT EXPENSE 16,100 15,000 8,738 900.9051 MISC CUSTOMER ACCOUNTS EXPENSE UTILITY 272,000 275,000 276,766 added 4.8k for survey 900.9061 BAD DEBT EXPENSE&RECOVERY 20,000 20,000 21,645 Total for Customer Accounts Expense: 350,200 344,000 346,089 Administrative Expense 920.9201 SALARIES OFFICE&COMMISSION 860,000 762,000 729,964 GM 920.9202 SALARIES COVID-19 - - 160,583 920.9205 TEMPORARY STAFFING 4,000 4,000 920.9211 OFFICE SUPPLIES 107,000 165,000 102,156 920.9212 ELECTRIC&WATER CONSUMPTION-OFFICE 29,000 31,000 25,940 920.9213 BANK FEES 2,500 2,640 2,396 920.9221 LEGAL FEES 32,000 32,000 34,975 920.9231 AUDITING FEES 18,040 18,000 16,560 920.9241 INSURANCE 182,884 175,000 172,405 920.926 UTILITY SHARE-DEFERRED COMP 123,500 117,500 90,531 Inv Assist,GM 920.9261 UTILITY SHARE-MEDICAL/DENTAL/DISABIL 847,000 807,166 745,160 Inv Assist,GM 920.9262 UTILITY SHARE-PERA 280,000 269,940 251,913 Inv Assist,GM 920.9263 UTILITY SHARE-FICA 265,000 252,650 236,291 Inv Assist,GM 920.9264 EMPLOYEE SICK PAY 133,025 127,000 123,663 920.9265 EMPLOYEE HOLIDAY PAY 146,991 138,500 135,152 920.9266 EMPLOYEE VACATION&PTO PAY 231,961 230,000 226,668 920.9267 UPMIC DISTRIBUTION 60,000 62,000 48,212 920.9291 CONSULTING FEES 55,000 72,200 53,763 GM Search,AMI Consultant 920.9301 TELEPHONE 31,300 31,000 29,364 920.9302 ADVERTISING 13,000 15,000 10,932 920.9303 DUES&SUBSCRIPTIONS-FEES 130,365 220,093 112,401 81 ELK RIVER MUNICIPAL UTILITIES ELK RIVER,MINNESOTA 2022 ELECTRIC BUDGET 2022 Annual 2021 Annual 2020 Annual Electric Budget Budget Actual 920.9305 SCHOOLS&MEETINGS 224,212 198,811 106,195 920.9321 MICE OF GENERAL PLANT&OFFICE HEATING 7,500 9,000 5,210 Total for Administrative Expense: 3,784,279 3,740,501 3,420,443 General Expense 920.9269 CIP REBATES-RESIDENTIAL 57,907 67,050 37,703 920.927 CIP REBATES-COMMERCIAL 232,200 222,200 146,859 920.9271 CIP-ADMINISTRATION 85,301 81,668 4,377 920.9272 CIP-MARKETING 47,000 46,000 17,326 920.9273 CIP-LABOR 100,512 100,083 142,996 920.9274 CIP REBATES-LOW INCOME 18,500 15,500 12,000 920.9275 CIP-LOW INCOME LABOR 9,750 15,500 8,874 920.9281 ENVIRONMENTAL COMPLIANCE 34,000 32,200 30,134 920.9306 MISC GENERAL EXPENSE 2,500 2,500 )47) Total for General Expense: 587,670 582,701 400,225 Total Expenses(before Operating Transfers) 39,901,529 36,864,172 34,336,285 Operating Transfer Operating Transfer/Other Funds 597.8262 TRANSFER TO CITY ELK RIVER REVENUE 1,488,692 1,374,768 1,340,218 Total for Operating Transfer/Other Funds: 1,488,692 1,374,768 134,218 Utilities&Labor Donated 597.8261 UTILITIES&LABOR DONATED TO CITY 230,000 230,000 229,085 Total for Utilities&Labor Donated: 230,000 230,000 229,086 Total Operating Transfer Total for Total Operating Transfer: 1,718,692 1,604,768 1,569,304 Net Income Profit(Loss) 1,566,384 1,351,548 2,896,266 82 ELK RIVER MUNICIPAL UTILITIES ELK RIVER,MINNESOTA 2022 WATER BUDGET 2022 Annual 2021 Annual 2020 Annual Water Budget Budget Actual Revenue Operating Revenue Water Sales 610.6101 Water Sales Residential 1,359,866 1,256,746 1,506,673 610.6102 Water Sales Commercial 842,025 800,700 830,369 610.6103 Water Sales Irrigation 243,025 242,304 276,768 Total for Water Sales: 2,444,916 2,299,751 2,613,812 Total Operating Revenue 2,444,916 2,299,751 2,613,812 Total for Total Operating Revenue: 2,444,916 2,299,751 2,613,812 Other Operating Revenue Interest/Dividend Income 460.4691 Interest&Dividend Income 35,000 38,000 33,456 460.4692 Other Interest/Misc Revenue 1,000 1,000 1,104 Total for Interest/Dividend Income: 36,000 39,000 34,561 Customer Penalties 620.6301 Customer Penalties 18,000 - 3,801 Total for Customer Penalties: 18,000 - 3,801 Connection Fees 620.6401 Water/Access/Connections Fees 430,000 110,000 595,482 620.6402 Customer Connection Fees 35,000 30,000 31,329 620.6407 Bulk Water Sales/Hydrant Rental 15,000 14,000 25,601 Total for Connection Fees: 480,000 154,000 652,414 Misc Revenue 470.4722 Misc Non-Utility - - 55 470.4739 Pera Pension Revenue - - 1,197 470.475 Rental Property Income - - 1,837 620.626 Transfer In From City - - - 620.6403 Miscellaneous Revenue - - 24 620.6323 Gain On Disposition Of Property - - 3,525 620.6404 Hydrant Maintenance Program 13,000 11,500 14,461 620.6405 Contributions from Developers 65,000 - 477,194 620.6406 Water Tower Lease 286,153 274,480 243,631 Total for Misc Revenue: 364,153 285,980 741,926 Total Other Revenue 898,153 478,980 1,432,701 Total for Total Other Revenue: 898,153 478,980 1,432,702 Total Revenue 3,343,069 2,778,731 4,046,513 Expenses Production Expense 700.7021 MTCE OF STRUCTURES 75,000 61,200 52,040 Total for Production Expense: 75,000 61,200 52,041 Pumping Expense 710.7101 SUPERVISION 66,000 63,000 52,580 New GM 710.7181 ELECTRIC&GAS UTILITIES 270,000 240,000 250,804 710.7182 SAMPLING 15,000 15,000 10,959 710.7183 CHEMICAL FEED 36,000 28,000 22,817 710.722 MTCE OF WELLS 160,000 175,000 111,078 710.723 SCADA-PUMPING 16,000 10,000 2,464 Total for Pumping Expense: 563,000 531,000 450,706 Distribution Expense 730.7301 MTCE OF WATER MAINS 120,000 85,000 113,488 730.7309 LOCATE WATER LINES 17,000 16,000 11,136 730.7312 WATER METER SERVICE 55,000 45,000 34,367 730.7315 INSTALL&MTCE IRRIGATION METERS - 31 730.7316 BACKFLOW DEVICE INSPECTION 15,000 15,000 4,747 labor and software expense 730.7321 MTCE OF CUSTOMERS SERVICE 30,500 25,000 24,341 730.7325 WATER MAPPING 12,500 12,000 8,353 730.7331 MTCE OF WATER HYDRANTS-PUBLIC 18,000 20,000 9,398 730.7332 MTCE OF WATER HYDRANTS-PRIVATE 5,000 7,000 4,594 730.7341 WATER CLOTHING/PPE 7,000 10,000 9,845 730.7391 WAGES WATER 9,500 7,500 4,716 730.7395 TRANSPORTATION EXPENSE 15,000 15,000 11,768 730.7399 WATER PERMIT 18,600 15,000 12,396 Total for Distribution Expense: 323,100 272,500 249,186 83 ELK RIVER MUNICIPAL UTILITIES ELK RIVER,MINNESOTA 2022 WATER BUDGET 2022 Annual 2021 Annual 2020 Annual Water Budget Budget Actual Depreciation&Amortization 595.8031 DEPRECIATION 1,199,124 1,182,605 1,133,179 Total for Depreciation&Amortization: 1,199,124 1,182,605 1,133,179 Interest Expense 596.8071 INTEREST EXPENSE-BONDS 46,371 14,288 24,344 596.8075 INTEREST EXPENSE-DEFEASED BONDS - (829) (829) 597.8281 AMORTIZATION OF DEBT DISCOUNT/PREMIUM (6,651) - - Total for Interest Expense: 39,720 13,459 23,515 Other Operating Expense 597.8213 LOSS ON DISPOSITION OF PROP(CAPITAL) - - 18 597.8264 DAM MAINTENANCE EXPENSE 1,750 1,000 1,663 597.8302 PENSION EXPENSE - 20,500 (39,408) 597.8303 OPEB EXPENSE - 20,000 1,704 597.8341 INTEREST EXPENSE-METER DEPOSITS 100 500 408 597.84 RENTAL PROPERTY EXPENSE - - 1,426 Total for Other Operatin Expense: 1,850 42,000 (34,187) Customer Accounts Expense 900.9021 METER READING EXPENSE 2,500 2,500 2,321 900.9051 MISC CUSTOMER ACCOUNTS EXPENSE UTILITY 71,200 65,000 64,188 added 1.2k for survey 900.9061 BAD DEBT EXPENSE&RECOVERY 500 1,000 - Total for Customer Accounts Expense: 74,200 68,500 66,509 Administrative Expense 920.9201 SALARIES OFFICE&COMMISSION 235,000 211,000 204,641 GM 920.9202 SALARIES COVID-19 - - 30,762 920.9205 TEMPORARY STAFFING 1,000 1,000 - 920.9211 OFFICE SUPPLIES 23,700 41,250 24,766 920.9212 ELECTRIC&WATER CONSUMPTION-OFFICE 8,000 8,000 6,485 920.9213 BANK FEES 700 700 615 920.9221 LEGAL FEES 8,000 8,000 7,841 920.9231 AUDITING FEES 4,510 4,500 4,140 920.9241 INSURANCE 27,000 26,000 24,458 920.926 UTILITY SHARE-DEFERRED COMP 28,000 20,000 12,487 GM 920.9261 UTILITY SHARE-MEDICAL/DENTAL/DISABIL 217,000 208,500 159,305 GM 920.9262 UTILITY SHARE-PERA 51,000 46,000 40,304 GM 920.9263 UTILITY SHARE-FICA 49,000 45,000 38,423 GM 920.9264 EMPLOYEE SICK PAY 30,000 30,000 19,527 920.9265 EMPLOYEE HOLIDAY PAY 28,000 28,000 21,872 920.9266 EMPLOYEE VACATION&PTO PAY 41,000 40,000 36,154 920.9267 UPMIC DISTRIBUTION 11,000 10,500 7,886 920.9268 WELLHEAD PROTECTION 20,000 20,000 - Wellhead protection plan amendment 920.9291 CONSULTING FEES 20,000 13,500 13,254 GM Search,AMI Consultant 920.9301 TELEPHONE 6,800 6,000 5,653 920.9302 ADVERTISING 5,000 7,000 5,481 920.9303 DUES&SUBSCRIPTIONS-FEES 73,616 80,328 67,117 920.9305 SCHOOLS&MEETINGS 55,026 49,312 12,151 920.9321 MTCE OF GENERAL PLANT&OFFICE HEATING 1,900 2,700 1,299 Total for Administrative Expense: 945,252 907,290 744,631 General Expense 920.9269 CIP REBATES-RESIDENTIAL 4,500 4,500 3,830 920.927 CIP REBATES-COMMERCIAL 500 500 1,000 920.9272 CIP-MARKETING 500 500 40 920.9273 CIP-LABOR 4,700 4,700 4,345 920.9281 ENVIRONMENTAL COMPLIANCE 2,200 2,200 1,936 920.9306 MISC GENERAL EXPENSE 250 1,250 21 Total for General Expense: 12,650 13,650 11,174 Total Expenses(before Operating Transfers) 3,233,895 3,092,204 2,696,755 Operating Transfer Utilities&Labor Donated 597.8261 WATER&LABOR DONATED TO CITY 1,500 1,500 463 Total Operating Transfer Total for Total Operating Transfer: 1,500 1,500 463 Net Income Profit(Loss) 107,674 (314,972) 1,349,294 84 Elk River Municipal Utilities Business Plan/Budget 2022 Electric Department Capital Budget Capital Construction Projects Cost Description $ 500,000 Highway 169 redefine Reserve $ 100,000 Rebuild:Ogden,196th,Lander $ 100,000 199th rebuild $ 100,000 Waco Business Center Dr Recon $ 150,000 Cty Rd 33 $ 100,000 Rebuild Sandpiper Estates $ 75,000 Otsego Street Lights Subtotal $ 1,125,000 *Projects listed in order of priority Capital Construction Substations Cost Description $ 1,000,000 Highway 10 Design&Construction Reserve $ 15,000 Station 14-3 Recloser Tank Replacement $ 30,000 West Bank#1 Relay Panel Replacement $ 30,000 West Bank#2 Relay Panel Replacement Subtotal $ 1,075,000 Capital Construction Feeders Cost Description $ 100,000 County Rd 35 Feeder to Waco $ 250,000 Rebuild Feeder 46 Substation to Hwy 10 $ 250,000 New Feeder to tie Sub14-4 to Otsego Sub Subtotal $ 600,000 Capital Construction System Cost Description $ 543,000 Transformers and Meters ***Increased due to pricing $ 500,000 AMI Reserve $ 350,000 New Development Distribution Installation $ 50,000 Street Lighting $ 50,000 Ongoing OH Equip Replacement(Poles,Switches,Cut-Outs) $ 100,000 Ongoing URD Equip Replacement(Switches,1-Boxes,Fuse Pads) $ 42,600 Fault Indicators Replacements Subtotal $ 1,635,600 Capital Equipment Needs Cost Description $ 250,000 Replace Bucket Truck Vehicle#4 $ 75,000 Replace Dump Truck Vehicle#7 $ 30,000 Forklift $ 25,000 Sweeper $ 80,000 Bobcat ***Added$15k due to increased quote $ 10,000 Snowblower ***New $ 97,600 Electric share of Administration $ 185,920 Electric Share of Technical Services Subtotal $ 753,520 Capital Facilities&Misc Needs Cost Description $ 50,000 Covered Material Bins West Sub $ 30,000 Vactron clean out west sub $ 884,185 Territory Acquisition-Loss of Revenue Pmt(2015 Contract-Area 1&2,3&4,5&6,7&8) Reserve Subtotal $ 964,185 Total Capital $ 6,153,305 Electric Noteworthy Non-Recurring Expenses Cost Description $ 6,000 Computers,iPads,Software,Accessories $ 10,000 Tools $ 2,500 Station 14-3 Transformer Arrestor Replacement $ 15,000 Station 14-4 Contractor Testing and Inspections $ 10,000 West Bank#2 Transformer Arrestor Replacement and Current Transformers $ 11,600 Electric share of Administration $ 18,075 Electric share of Technical Services Total $ 73,175 85 Elk River Municipal Utilities Business Plan/Budget 2022 Administration and Technical Services Departments Capital Budgets Administration Capital Equipment Needs Cost Description $ 10,000 Office Furniture $ 7,500 Hallway Display and Branding $ 5,000 Network Switches/Misc(ERMU) $ 7,500 Security Camera System Replacement $ 5,000 Voice Server Replacement $ 45,000 Vehicles #1 $ 42,000 Carpet Subtotal $ 122,000 Administration Noteworthy Non-Recurring Expenses Cost Description $ 14,500 Computers,iPads,Software,Accessories,Scanners,Printers-Upgrades Subtotal $ 14,500 Total Administration $ 136,500 Technical Services Capital Equipment Needs Cost Description Currently designated as emergency $ - Diesel Engines Emission Retrofit $ 350,000 standby,retrofit on hold until further notice $ - Diesel Plant to run on Natural gas. $ 20,000 Deferred until future date $ 25,000 Upgrade tanks per inspection issues $ 18,000 Repair Exhaust-Engine#3 $ 35,000 Fiber Extension-169 to Sub $ 25,000 Field Meter Testing Equipment $ 20,000 Shop Meter Tester $ 12,000 Thermal Imager Camera $ 8,600 Locator $ 45,000 Trucks #2(95/5) Subtotal $ 188,600 Technical Services Noteworthy Non-Recurring Expenses Cost Description $ 8,500 Computers,iPads,Software,Accessories-Upgrades $ 10,000 General Engine Inspections/Maint. Subtotal $ 18,500 Total Technical Services $ 207,100 Total Capital Items $ 310,600 Total Non-Recuring Expenses $ 33,000 86 Elk River Municipal Utilities Business Plan/Budget 2022 Water Department Capital Budget Water Capital Construction Needs Cost Description $ 25,000 Well#2 Rehab $ 35,000 Well#3 Roof Replacement $ 85,000 Well#4 Media $ 12,000 Chlorine Analyzers $ 100,000 Facility Repair $ 20,000 Freeport Booster Station $ 15,000 Placeholder for undetermined projects $ 60,000 SCADA upgrades *increased$20k for fiber for well 3 scada $ 100,000 AMI $ 1,201,575 Highway 169 Redefine *increased from$1M Reserves Subtotal $ 1,653,575 Capital Equipment Needs Cost Description $ 45,000 Trucks #32 $ 24,400 Water share of Administration $ 2,680 Water Share of Technical Services Subtotal $ 72,080 Total Capital $ 1,725,655 Water Noteworthy Non-Recurring Expenses Cost Description $ 1,100 Computers, iPads $ 10,000 Meters/ERT $ 2,900 Water share of Administration $ 425 Water share of Technical Services Total $ 14,425 87 Ell(RIVER MUNCIPAL UTIL0IES TRAVEL 6 TRAINING BUDGET FOR 2022 BWget Budget Budget Attending 2022 2021 MO Comments 26.6 MMUA Overhead hot Une School staff 2,140 2,110 2,110 MMUA Underground School staff 2,140 2,110 2,110 MMUA Transformer School staff 2,370 2,110 2,110 MMUA Substation Workshop staff 2,140 2,110 2,110 10 Line Supenv.n staff - 1,AO 1,700 MMUA Stepping Into leadership staff 2,200 -18 month program Advanced Staking Wokshop staff 1,900 1,900 lyW Apprenticeship staff 3,125 IAA 1,100 MMUA Meter School staff 1,960 1,940 1,940 MMUA Laata Workshop staff 720 720 T20 Regional Workshop stiff 920 920 1,130 Competent Person training staff 950 950 930 APPA linemen Rodeo team staff 4,500 5,000 3,4011 team-Austin,TX Cross Training School/Diesel Workshop staff 1,96O 1,910 1,910 PCB Training staff 1,213 1,233 1,428 Member Information Conh(N0C) staff 2,363 2,135 2,133 linen pry Fore0ersan attending MMUAT6OConfenence staff 460 230 850 Inventory rompers.and Assistant attending partial Tree Trimming/Chains.Wokshop staff 2,060 2,060 4,120 Everyday Leadership Training 6staff 6,957 7,273 2,000 Identified reed in Survey Additional Training 2,000 2,000 2,000 45, 42,098 40,376 35,7. Water Certification Continuing Eduralon 4 staff 2,668 2,003 2,000 Wastewater w Certification Continuing Edtion 4staff 2,000 1,300 1,300 Unlicensed Electrician Continuing Education 1 staff 60 - BacYgowTesterCertiRcationOass 2 staff 2,400 3,600 per recent years S.,/ son Professional Operator and Development staff 750 750 J50 lst line Supervision ]staff - 1,A0 - MMUA Stepping Into Leadership I staff 2,200 - -18 month program Everyday Leadership Training 4staff 1,739 1,364 500 Identified need in Survey Additional Training 2,500 2,500 2,503 656 14,317 13,504 7,250 14gtanl Services MMUA Locator Workshop AdvancedStakinBWokshop ]stall - 1,903 MM W Diesel Wokshop 1 staff 850 830 750 MMUA Generation School Engineering seminar 1smff - 2,000 Engineer.MPS,CON - - 873 UMMA Meter Workshop ]staff 700 70) 903 CAD Workshopa/OPS - • - BPILIsmConference - . Substation School stiff 890 890 890 Power quality training stiff 1,003 1,000 1,000 Infrared Camera training staff 2000 1,000 1,003 MAMA wintermtg staff 435 400 800 UMMA summer mg staff 475 400 400 1st Line Supervision staff - 1,790 - EkclriwlUcaning staff - - 365 Remove•moved to dues Cross Training School stall - 890 Apprentice Meter Program Ill - - 409,50 EverydayLeadershipTraining staff 2,374 1,818 6000 Identified need In Suvq Additional Training 1,500 1,003 1,000 2% 10,024 9,848 13,773 AdrriNN4dpn staff 1,700 1,700 1,700 Water Certification Continuing Educal5on MRWA staff 500 50D 500 Water Certification Continuing Fducation Wasdwater Certifrauan Continuing Eduotion staff SW 500 500 MV-RS Mend/Software training stall . WWA National COn6nence staff 2}00 2,100 2,103 Water Ugity Management Institute stall EngineeringMPSYCON staff 3,300 1,750 875 UMMA Meter Workshop staff 435 Apr UMMA wintering staff 475 400 • MMUA Annual Summer Meeting staff/Scomm 7,406 7,406 7,406 MMUA Legislative Round staff/1 canon I,. 1,305 1,305 dv APPAIeeislae Pound-up staff/1 comm 6,473 6,475 6,475 MMUA T60 Conference staff 3,325 2,400 2,400 Advanced Training staff 1803 1,900 1,903 .gineering seminar staff 2,000 2,000 Clad,Conference staff 800 800 8. MMUA Leadership Academy staff 4,310 6,310 3,110 APPA E&OCanbence staff 6,185 6,185 6,185 APPA Wdwal Conference staff/0 canon 3,030 3,050 3,050 1st Line Supevsion staff - 3,530 3,400 Memrvr Information Conf dn.) staff 4,726 4,270 6,405 APPA Training(Mgmt,CS.Fin,Fog ClP,etc) staff 2,500 2,500 1,529 Training lMBmt CS,fin,Fmg ClP,etc) staff - - 1,116 APPA Board Member and RP3 Travel staff Ap1ACybeisesarity Summit staff - HumanResourcesTraining/Conkrence staff - 2,000 -Mevedta Office Emergency Prepar.ness 6 Restoration staff - - 1,085 CPA CPI staff 1,500 1,500 Management Training 20,000 - -Includes Strategic Planning Everyday leadership Training Ostaff 4,348 5,003 - AdditiorelTraining 3,000 1,003 1,000 3016 82,040 63,331 55,340 Member Inbrmation Cnnh,690/ 2staf 4,726 4,270 4,270 Customer Service 3,IX3 3,000 5,250 Identified need in Survey Adobe Publishing&Design 5offware training ]staff 1,000 600 1,000 Cnmmunkatiom position attending MN Munitipal Oeks Institute Sstaff 1,000 Bop -Cnmmunia0wls position attending Clerk's Confenence Istaff 800 - -Communications position attending Chamber Leadership Program 1 staff 473 403 400 Financial/Accounting(AWL,MSC M64) 1,650 1,650 3,123 API Continuing Ed,Misc PR,Excel,Accounting Misc Everyday leadership Training 11 staff 4,733 4,545 16O3 Identified need in Survey Additional Training 1,000 1,000 1,003 PA Emgoyment law Update 1 staff 250 - SHRMConference 1staff 3,000 - -MR Training APPA Summit 1 stall 1,550 500 1, -New II-Training ITSCCP Online Edvation 1 stall .0 NR4Misc 0-Training ]start 1,000 1,000 -New IT Training 2856 24,684 19,265 16845 60ety Trai5K Sale Driver Training ]staff 2,1C0 2,f00 2,100 AEditiouai Training 1,000 1800 1,000 acing Test 700 700 7C0 MMUA Monthly Satiety Meetings - - 30000 Moved.Dues&Subrniptima-fees Labor ,275 93,030 4% 103,075 98,800 33B03 Edu atbn 3,003 3,000 3,000 3,003 3,000 3,000 T.I 279,218 248,124 163,432 Total Change 13% 50% 88 ELK RIVER MUNCIPAL UTILITIES DUES&SUBSCRIPTIONS-FEES BUDGET FOR 2022 Budget Budget Actual Description 2022 2021 2020 MMUA Membership Dues 33,839 32,500 32,413 iodated from$32,500 MMTG Dues 6,550 6,600 6,549 APPA Dues 17,630 17,630 16,899 APPA DEED Program Dues 3,600 3,400 3,380 APPA Customer Survey Benchmarking - - 1,500 MMUA Monthly Safety Meetings 30,500 30,150 30,038 ipdated from$30,150 Rotary 300 300 - Drug and Alcohol Random Testing 1,500 800 50 Bond Administrative&Management Fees 5,400 4,000 4,000 US Bank,City(Bond Disclosure Fees),Moody's Quarterly MN Dept of Health Water Connection Fee 54,500 52,000 51,970 Updated from$54k MRWA Annual Fee 300 300 300 AWWA Annual Fee Dues 2,120 2,904 2,855 Removed Updates$850 Updated from$2910 MPCA Permit Fee-WTP 350 345 - MPCA Permit Fee-Engines 360 240 235 Homeland Security(Hazardous Chemical Fee) 700 700 700 SUSA Membership 125 125 - Elk River Chamber Membership 620 600 560 Updated from$770 Economic Development Association 350 350 - mn deed,eda of mn GASB Subscription 287 260 - ESRI Small Govt Enterprise agreement 27,000 27,000 20,980 mPower Maintenance 6,000 - - AutoCAD Maintenance Support - 2,400 1,538 Adobe Creative Cloud software 800 900 849 Adobe Pro software 800 900 585 SIEM Solution 2,380 New 2022-Billed from city Resource Training&Solutions membership - 210 - Munici-pals Membership 25 25 - Survey Monkey 390 390 384 AWWA Partnership Safe Water Treatment/Distribution 100 100 100 accessiBe 490 subscription added for new website HR professional membership(s) 1,400 500 94 SHRM and MRA Miscellaneous 5,565 4,792 3,541 Detail below Bond Underwriter's Discount - 85,000 - 2021 Bonding Expense Bond Service Professional Fee - 25,000 - 2021 Bonding for Field Services Building Total 203,981 300,421 179,519 Budget Change -32% 67% Budget Change without Bonding Expenses 7% 6% Miscellaneous 5,565 4,792 3,541 Total APA-Northstar Chapter Membership Fee 50 50 50 Supervisors Legal Update Renewal 530 530 525 Class A Electrical License 130 130 128 Journey worker A Electrician License Fee 43 - 43 Unlicensed Electrican Fee 19 - - CPA License Renewal 102 102 102 MN Society of CPA Membership 630 630 630 2 memberships Zoom 170 170 162 MCFOA Membership 90 90 45 2 memberships AWWA Membership Renewal 316 316 158 4 memberships MPCA Wastewater Certification Renewal 92 92 23 4 renewals Engineer License Renewal 125 - 123 Even year renewal IEEE Membership Renewal 241 241 - SHRM Membership Renewal - 219 219 PR Specialist Notary Renewal Fee - - - renews 12/2025 APA Membership Renewal 260 260 258 Misc Bonds/Permits 1,000 1,750 569 Water Operator License 92 92 32 4 renewals ISC2 Certification(IT) 125 120 125 RP3 Application Fee 1,200 - - Every 3 years BPMS Software - - - Sprinkler Inspection 350 - 350 CPP Certification Renew - - - Every 5 years(renewed in 2021) Backflow Tester Certification Recert - - - 1st in 2024 89 2022 CIP Operating Budget Required Spending and Savings Goals Total Spending Requirement 1.5% of GOR $ 548,026 Low Income .2%of Residential GOR $ 27,126 Minimum Conservation Spending Requirement $ 274,013 Maximum Load Management Spending Requirement $ 274,013 Energy Savings Goal (kWh) Line Loss 5.9%Subtracted 4,618,309 Possible Distributed Renewable Generation Funds $ 27,401 Possible Research and Development Funds $ 54,803 Total CIP Budget 2022 Direct Labor $ 78,637 General &Administration $ 31,625 Advertising $ 48,500 Equipment $ 11,600 Contract(Includes $32,000 MN PUC Assessment) $ 75,701 Total $ 246,063 ERMU Rebates $ 305,107 Total all Expenses and Rebates $ 551,170 Total Estimated kWh Savings 4,849,134 Total Operating CIP Budget No Rebates Only Direct Costs Direct Labor $ 78,637 Advertising $ 48,500 Equipment $ 11,600 Contract(Includes $31,000 MN PUC Assessment) $ 75,701 Total ERMU Operating Expenses $ 214,438 Total Rebate Budget ERMU Self Funded $ 305,107 Total Requested Budget Direct Labor $ 78,637 Advertising $ 48,500 Equipment $ 11,600 Contract (Includes$31,000 MN PUC Assessment) $ 75,701 ERMU Self Funded Rebates $ 305,107 Total Requested 2022 Budget* $ 519,545 *No General and Administrative Included 90 1.., Elk River -- - Municipal Utilities 2022 Schedule of Rates & Fees 91 Elk River --- Municipal Utilities RESIDENTIAL ALL ELECTRIC SERVICE RATE Available: Within Elk River Municipal Utilities (ERMU) established service territory. Applicable:To single-family residences and individually metered apartments for all domestic purposes with electric energy as a sole source of heating, and when all service is supplied through a single meter, provided ratings of individual single-phase motors do not exceed five (5) horsepower. Character of Service:AC, 60 cycles, 120/240 volt,three wire, single-phase. Special Conditions: Residential service to a multiple dwelling or apartment house through a single meter is allowed for existing services only. Service under this rate schedule shall not be sub-metered and resold to the individual tenants on the basis of usage and the cost of electric service to the tenant must be furnished without specific charge or price which varies with the quantity of energy used. Any apartment or dwelling unit which has separate permanent kitchen facilities shall be considered as one single family private residence. Meter equipment must-to be accessible to our service department at any time. Residential All Electric Service Rate: Basic Monthly Electric Charge:$14.2513.50 per month Summer Winter I $0.1334 0/kWh/month $0.12184448/kWh/ month Summer Rate: Applicable during the five monthly billing periods of June—October. Winter Rate:Applicable during the seven monthly billing periods of November—May. Rates are subject to application of Power Cost Adjustment (PCA). Federal, state, and local taxes may apply. Minimum Bill: The Basic Monthly Electric Charge. Billing and Terms of Payment: See ERMU Service Policies Policy (Billing Due Dates, and Penalties and Delinquent Notices.) Page 1 of 2 92 Residential All Electric Service Rate Terms and Conditions: 1. Usage may be fractionalized on the actual days of service for application of a change in rate or changing from summer to winter or from winter to summer rates. 2. Service will be furnished pursuant to ERMU's rules. 3. Extensions made for service under this schedule are subject to the provisions of ERMU's rules governing Extension of Service and Facilities. 4. The rates set forth herein may be modified by the amount of any governmental changes imposed and levied on transmission,distribution, production, or the sale of electrical power. 5. Exceptions by management approval only. Adopted December 148, 20210 Effective January 1, 20223 Page 2 of 2 93 Elk River Municipal Utilities RESIDENTIAL ELECTRIC SERVICE RATE Available: Within Elk River Municipal Utilities (ERMU) established service territory. Applicable:To single-family residences and individually metered apartments for all domestic purposes when all service is supplied through a single meter, provided ratings of individual single-phase motors do not exceed five (5) horsepower. Character of Service:AC, 60 cycles, 120/240 volt,three wire, single-phase. Special Conditions: Residential service to a multiple dwelling or apartment house through a single meter is allowed for existing services only. Service under this rate schedule shall not be sub-metered and resold to the individual tenants on the basis of usage and the cost of electric service to the tenant must be furnished without specific charge or price which varies with the quantity of energy used. Any apartment or dwelling unit which has separate permanent kitchen facilities shall be considered as one single family private residence. Meter equipment mustte be accessible to our service department at any time. Residential Electric Service Rate: I Basic Monthly Electric Charge:$14.251-3.50 per month Summer Winter I $0.133442-70/kWh/month $0.121811g0/kWh/month Summer Rate:Applicable during the five monthly billing periods of June—October. Winter Rate:Applicable during the seven monthly billing periods of November—May. Rates are subject to application of Power Cost Adjustment (PCA). Federal, state, and local taxes may apply. Minimum Bill: Basic Monthly Electric Charge. Billing and Terms of Payment:See ERMU Service Policies Policy(Billing Due Dates,and Penalties and Delinquent Notices.) Page 1 of 2 94 Residential Electric Service Rate Terms and Conditions: 1. Usage may be fractionalized on the actual days of service for application of a change in rate or changing from summer to winter or from winter to summer rates. 2. Service will be furnished pursuant to ERMU's rules. 3. Extensions made for service under this schedule are subject to the provisions of ERMU's rules governing Extension of Service and Facilities. 4. The rates set forth herein may be modified by the amount of any governmental changes imposed and levied on transmission, distribution, production, or the sale of electrical power. 5. Exceptions by management approval only. Adopted December 148, 20210 Effective January 1, 20221 Page 2 of 2 95 Elk River ---- Municipal Utilities RESIDENTIAL CLEAN ENERGY CHOICE PROGRAM RATE Available: Within Elk River Municipal Utilities (ERMU) established service territory. Applicable:To ERMU customers receiving service under another residential electric rate. This Program is available to residential customers choosing to purchase renewable energy. Customers' will have the option to purchase 50, 75 or 100 percent of the monthly energy consumption from renewable energy sources. ERMU customers receiving service under the electric vehicle charging rate will be automatically enrolled in the Residential Clean Energy Choice Program Rate at the 100 percent participation level at no additional monthly charge. The customer shall agree to: 1. Complete an application -through the online registration process, or by returning a printed copy to ERMU. 2. Clearly indicate the participation level and the additional monthly charge applicable to the 50, 75 or 100 percent subscription level desired. 3. Provide notice to ERMU to cancel participation. ERMU shall provide: 1. Monthly billing statement with the Clean Energy Choice participation level clearly identified. 2. The applicable incremental cost per participation level will be identified and added to the billing statement. Participation Level % Monthly Charge 50 $1 75 $2 100 $3 Federal, state and local taxes may apply. Adopted December 148, 20210 Effective January 1, 20221 Page 1 of 1 96 Elk River Municipal Utilities NON-DEMAND ALL ELECTRIC SERVICE Available: Within Elk River Municipal Utilities (ERMU) established service territory. Applicable:Available for non-residential customer accounts. Existing or new Customer accounts with electric energy as a sole source of heating, and with actual or projected demands of less than 50 kW for the previous 12 consecutive months if applicable. When the Customer achieves an actual maximum demand of 50 kW or greater,the Customer will be placed on the Demand Electric Service rate in the next billing cycle. The Customer accounts shall be in compliance with all policies, procedures, and safety requirements, and shall be taken through one meter. Rating of individual single-phase motors and other single-phase power and heating units served under this schedule shall not exceed ten (10) horsepower (or 7.355 kW) except by special permission. (Not applicable to resale, standby or auxiliary service.) Character Of Service:AC, 60 cycles, 120 volts or 120/240 volts, single-phase; 120/208 volts, or 277/480 volts,three-phase. Four wire, 240 volts three phase will only be applicable to existing customers now being served by this voltage. A Customer requiring voltages other than that already established by ERMU shall be required to provide suitable space and location for ERMU's'transformers, metering and associated equipment. Special Conditions: One meter shall be installed to service one class of business. If additional buildings are required for a given business,they shall be interconnected by the customer to obtain one meter. If additional meters and services are requested by the customer, each shall be treated as a separate customer and billed individually. Meter equipment must be accessible to our service department at any time. Installation of Demand Meter:At the option of ERMU, a demand meter may be installed on any customer whose monthly usage exceeds 15,000 kWh. Non-Demand All Electric Service Rate: Basic Monthly Electric Charge:$35.00 A0 per month Summer Winter $0.12911230/ kWh/ month $0.108114-O/kWh/month Summer Rate: Applicable during the five monthly billing periods of June—October. Winter Rate:Applicable during the seven monthly billing periods of November—May. Rates are subject to application of Power Cost Adjustment (PCA). Page 1 of 2 97 Non-Demand All Electric Service Rate Federal,state, and local taxes may apply. Minimum Bill:The Basic Monthly Electric Charge plus $1.00 per kW per month of excess transformer capacity requested by customer. In case of equipment having abnormally low annual utilization factors or unusual operating characteristics, special minimum charges may be prescribed by ERMU. Power Factor Adjustment: The rates set forth in this schedule are based on the maintenance by the Customer of a power factor of not less than 9895%at all times. If the power factor, as measured by the electric department, is lower than 9895%,the monthly demand charge may be multiplied by the ratio 9895%divided by the measured power factor, or at ERMU's option, the power factor may be corrected at the Customer's expense. Fluctuating Loads: Customers operating equipment having a highly fluctuating or large instantaneous demand, such as welders and X-ray machines, shall be required to pay all non-betterment costs of isolating the load from the balance of ERMU's lines. No motor larger than ten (10) HP (or 7.355 kW) will be allowed to be across-the-line started without notification and written authorization from ERMU. In addition, Customers who fail to provide adequate corrective equipment shall be required to own and maintain their own transformers. Billing and Terms of Payment: See ERMU Service Policies Policy(Billing Due Dates, and Penalties and Delinquent Notices.) Terms and Conditions: 1. Usage may be fractionalized on the actual days of service for application of a change in rate or changing from summer to winter or from winter to summer rates. 2. Service will be furnished pursuant to ERMU's rules. 3. Extensions made for service under this schedule are subject to the provisions of ERMU's rules governing Extension of Service and Facilities. 4. The rate set forth herein may be modified by the amount of any governmental changes imposed and levied on transmission, distribution, production, or the sale of electrical power. 5. Exceptions by management approval only. Adopted December 148, 20210 Effective January 1, 20221. Page 2 of 2 98 Elk River .— Municipal Utilities NON-DEMAND ELECTRIC SERVICE RATE Available: Within Elk River Municipal Utilities (ERMU) established service territory. Applicable:Available for non-residential customer accounts. Existing or new Customer accounts with actual or projected demands of less than 50 kW for the previous 12 consecutive months if applicable. When the Customer achieves an actual maximum demand of 50 kW or greater,the Customer will be placed on the Demand Electric Service rate in the next billing cycle. The Customer accounts shall be in compliance with all policies, procedures, and safety requirements, and shall be taken through one meter. Rating of individual single-phase motors and other single-phase power and heating units served under this schedule shall not exceed ten (10) horsepower(or 7.355 kW) except by special permission. (Not applicable to resale, standby or auxiliary service.) Character Of Service: AC, 60 cycles, 120 volts or 120/240 volts, single-phase; 120/208 volts, or 277/480 volts,three-phase. Four wire, 240 volts three phase will only be applicable to existing customers now being served by this voltage. A Customer requiring voltages other than that already established by ERMU shall be required to provide suitable space and location for ERMU's transformers, metering and associated equipment. Special Conditions: One meter shall be installed to service one class of business. If additional buildings are required for a given business, they shall be interconnected by the customer to obtain one meter. If additional meters and services are requested by the customer, each shall be treated as a separate customer and billed individually. Meter equipment must be accessible to our service department at any time. Installation of Demand Meter: At the option of ERMU, a demand meter may be installed on any customer whose monthly usage exceeds 15,000 kWh. Non-Demand Service Rate: Basic Monthly Electric Charge:$35.0030.op per month Summer Winter I $0.12911230/kWh/ month $0.10811030/kWh/month Summer Rate:Applicable during the five monthly billing periods of June—October. Winter Rate:Applicable during the seven monthly billing periods of November—May. Rates are subject to application of Power Cost Adjustment (PCA). Page 1 of 2 99 Non-Demand Electric Service Rate Federal, state, and local taxes may apply. Minimum Bill:The Basic Monthly Electric Charge plus $1.00 per kW per month of excess transformer capacity requested by customer. In the case of equipment having abnormally low annual utilization factors or unusual operating characteristics,special minimum charges may be prescribed by ERMU. Power Factor Adjustment:The rates set forth in this schedule are based on the maintenance by the Customer of a power factor of not less than 9895%at all times. If the power factor, as measured by the electric department, is lower than 9895%,the monthly demand charge may be multiplied by the ratio 9895% divided by the measured power factor, or at ERMU's option, the power factor may be corrected at the Customer's expense. Fluctuating Loads: Customers operating equipment having a highly fluctuating or large instantaneous demand, such as welders and X-ray machines, shall be required to pay all non-betterment costs of isolating the load from the balance of ERMU's lines. No motor larger than ten (10) HP (or 7.355 kW) will be allowed to be across-the-line started without notification and written authorization from ERMU. In addition, Customers who fail to provide adequate corrective equipment shall be required to own and maintain their own transformers. Billing and Terms of Payment: See ERMU Service Policies Policy (Billing Due Dates, and Penalties and Delinquent Notices.) Terms and Conditions: 1. Usage may be fractionalized on the actual days of service for application of a change in rate or changing from summer to winter or from winter to summer rates. 2. Service will be furnished pursuant to ERMU's rules. 3. Extensions made for service under this schedule are subject to the provisions of ERMU's rules governing Extension of Service and Facilities. 4. The rate set forth herein may be modified by the amount of any governmental changes imposed and levied on transmission, distribution, production, or the sale of electrical power. 5. Exceptions by management approval only. Adopted December 148, 20210 Effective January 1, 20221 Page 2 of 2 100 Elk River --- Municipal Utilities DEMAND ALL ELECTRIC SERVICE RATE Available: Within Elk River Municipal Utilities (ERMU) established service territory. Applicable:Available for non-residential customer accounts. Existing or new Customer accounts with electric energy as a sole source of heating, and with actual or projected demand greater than or equal to 50 kW. A Customer account with a billing demand of less than 50 kW for 12 consecutive months will be given the option of switching to the Non-Demand rate. The Customer accounts shall be in compliance with all policies, procedures, and safety requirements, and shall be taken through one meter. (Not applicable to resale,standby or auxiliary service.)A Customer on this rate may qualify for integrity testing. Character Of Service:AC, 60 cycles, 120 volts or 120/240 volts, single-phase; 120/208 volts, or 277/480 volts,three-phase. Four wire, 240 volts three-phase will only be applicable to existing customers now being served by this voltage. A customer requiring voltages other than that already established shall be required to provide suitable space and location for ERMU's transformers, metering and associated equipment. Special Conditions: One meter shall be installed to service one class of business. If additional buildings are required for a given business,they shall be interconnected by the customer to obtain one meter, unless an exception is approved by management. If additional meters and services are requested by the customer, each shall be treated as a separate customer and billed individually. Meter equipment mustto be accessible to our service department at any time. Demand Service Rate: Basic Monthly Electric Charge:$85.0075.00 per month. Summer Winter Demand Charge: $16.004-5.50 $12.0011.50 in kW/month Energy Charge: $0.068406 4 $0.06840654 in kWh/month Summer Rate: Applicable during the five monthly billing periods of June—October. Winter Rate: Applicable during the seven monthly billing periods of November—May. Rates are subject to application of Power Cost Adjustment(PCA). Federal, state and local taxes may apply. Page 1 of 2 101 Demand All Electric Service Rate Minimum Bill: Maximum billing demand during previous twelve months times 3.0%of the demand charge, or the actual demand multiplied by the demand charge,whichever is greater plus $1.00 per kW per month of excess transformer capacity requested by customer. Determination of Billing Demand:The billing demand shall be the highest measured demand (corrected for power factor if required) during any fifteen (15) minute period occurring in the current billing period. But in no month shall the billing demand be greater than the value in kW determined by dividing the kWh sales for the billing month by 75 hours per month. This billing adjustment applies only if the customer's peak demand DOES NOT occur between the hours of 3:00 p.m. and 10:00 p.m. Fluctuating Loads:Customers operating equipment having a highly fluctuating or large instantaneous demand, such as welders and X-ray machines, shall be required to pay all non-betterment costs of isolating the load from the balance of ERMU's system so that the load will not unduly interfere with service on ERMU's lines. In addition, Customers who fail to provide adequate corrective equipment shall be required to own and maintain their own transformers. No motor larger than ten (10) HP (or 7.355 kW) will be allowed to be across-the-line started without notification and written authorization from ERMU. Power Factor Adjustment: For loads of 50 kW or more, or at the option of ERMU for loads of less than 50 kW, power factor adjustments may be made in the billing demand,when the power factor, as determined by test, at the time of the Customer's maximum use is less than 9895%. If the power factor, as measured by ERMU's electric department, is lower than 9895%, the monthly demand charge may be multiplied by the ratio 9895% divided by the measured power factor, or at ERMU's option,the power factor may be corrected at the Customer's expense. Billing and Terms of Payment:See ERMU Service Policies Policy(Billing Due Dates, and Penalties and Delinquent Notices.) Terms and Conditions: 1. Usage may be fractionalized on the actual days of service for application of a change in rate. 2. Service will be furnished pursuant to ERMU's rules. 3. Extensions made for service under this schedule are subject to the provisions of ERMU's rules governing Extension of Service and Facilities. 4. The rates set forth herein may be modified by the amount of any governmental changes imposed and levied on transmission, distribution, production, or the sale of electrical power. 5. Exceptions by management approval only. Adopted December 148, 20210 Effective January 1, 20221 Page 2 of 2 102 Elk River Municipal Utilities DEMAND ELECTRIC SERVICE RATE Available: Within Elk River Municipal Utilities (ERMU) established service territory. Applicable:Available for non-residential customer accounts. Existing or new Customer accounts with actual or projected demand greater than or equal to 50 kW. A Customer account with a billing demand of less than 50 kW for 12 consecutive months will be given the option of switching to the Non-Demand rate. The Customer accounts shall be in compliance with all policies, procedures, and safety requirements, and shall be taken through one meter. (Not applicable to resale, standby or auxiliary service.)A Customer on this rate may qualify for integrity testing. Character Of Service:AC, 60 cycles, 120 volts or 120/240 volts, single-phase; 120/208 volts, or 277/480 volts, three-phase. Four wire, 240 volts three-phase will only be applicable to existing customers now being served by this voltage. A customer requiring voltages other than that already established shall be required to provide suitable space and location for ERMU's transformers, metering and associated equipment. Special Conditions: One meter shall be installed to service one class of business. If additional buildings are required for a given business, they shall be interconnected by the customer to obtain one meter, unless an exception is approved by management. If additional meters and services are requested by the customer, each shall be treated as a separate customer and billed individually. Meter equipment mustte be accessible to our service department at any time. Demand Service Rate: Basic Monthly Electric Charge:$85.0075.00 per month. Summer Winter Demand Charge: $16.0015.50 $12.0011.50 in kW/ month Energy Charge: $0.06840651 $0.06840651 in kWh/ month Summer Rate: Applicable during the five monthly billing periods of June—October. Winter Rate: Applicable during the seven monthly billing periods of November—May. Rates are subject to application of Power Cost Adjustment (PCA). Federal, state and local taxes may apply. Page 1 of 2 103 Demand Electric Service Rate Minimum Bill: Maximum billing demand during previous twelve months times 3.0%of the demand charge, or the actual demand multiplied by the demand charge, whichever is greater plus $1.00 per kW per month of excess transformer capacity requested by customer. Determination of Billing Demand:The billing demand shall be the highest measured demand (corrected for power factor if required) during any fifteen (15) minute period occurring in the current billing period. But in no month shall the billing demand be greater than the value in kW determined by dividing the kWh sales for the billing month by 75 hours per month. This billing adjustment applies only if the customer's peak demand DOES NOT occur between the hours of 3:00 p.m. and 10:00 p.m. Fluctuating Loads: Customers operating equipment having a highly fluctuating or large instantaneous demand, such as welders and X-ray machines, shall be required to pay all non-betterment costs of isolating the load from the balance of Elk River Municipal Utilities'system so that the load will not unduly interfere with service on Elk River Municipal Utilities' lines. In addition, Customers who fail to provide adequate corrective equipment shall be required to own and maintain their own transformers. No motor larger than ten (10) HP (or 7.355 kW) will be allowed to be across-the-line started without notification and written authorization from ERMU. Power Factor Adjustment: For loads of 50 kW or more, or at the option of ERMU for loads of less than 50 kW, power factor adjustments may be made in the billing demand, when the power factor, as determined by test, at the time of the Customer's maximum use is less than 9895%. If the power factor, as measured by ERMU's electric department, is lower than 9895%,the monthly demand charge may be multiplied by the ratio 9895%divided by the measured power factor, or at ERMU's option, the power factor may be corrected at the Customer's expense. Billing and Terms of Payment:See ERMU Service Policies Policy (Billing Due Dates, and Penalties and Delinquent Notices.) Terms and Conditions: 1. Usage may be fractionalized on the actual days of service for application of a change in rate. 2. Service will be furnished pursuant to ERMU's rules. 3. Extensions made for service under this schedule are subject to the provisions of ERMU's rules governing Extension of Service and Facilities. 4. The rates set forth herein may be modified by the amount of any governmental changes imposed and levied on transmission, distribution, production, or the sale of electrical power. 5. Exceptions by management approval only. Adopted December 148, 20210 Effective January 1, 20221 Page 2 of 2 104 Elk River Municipal Utilities LARGE INDUSTRIAL DEMAND ELECTRIC SERVICE RATE Available: Within Elk River Municipal Utilities (ERMU) established service territory. Applicable:Available for non-residential customer accounts. Existing or new Customer accounts with actual or projected demand greater than or equal to 1 MW. A Customer account with a billing demand of less than 1 MW for 12 consecutive months may be switched to the Demand Electric Service Rate. The Customer accounts shall be in compliance with all policies, procedures, safety requirements, and shall be taken through one or more meters. Not applicable to resale, standby or auxiliary service. Character Of Service: 3-Phase Primary, 7,200/12,470 volt,AC, 60 cycles. Special Conditions: Customer must provide a location suitable for the installation of a utility metering cabinet(s). Customer will be responsible for providing suitable wire and connection in the utility owned metering cabinet(s). The primary meter(s) and cabinet(s) shall be installed to service one class of business. If additional buildings are required for a given business,they shall be interconnected by the customer to the existing meter(s), unless an exception is approved by management. If additional meters and services are requested by the customer, each shall be treated as a separate customer and billed individually. A customer on the rate may qualify for integrity testing. ERMU equipment and metering must be accessible to ERMU 24 hours per day. Demand Service Rate: Basic Monthly Electric Charge: $120.00100,00 per month. Summer Winter Demand Charge: $15.50 58 $11.504-1:o8 in kW/month Energy Charge: $0.06770644 $0.06778644 in kWh/ month Summer Rate:Applicable during the five monthly billing periods of June—October. Winter Rate: Applicable during the seven monthly billing periods of November—May. Rates are subject to application of Power Cost Adjustment (PCA). Federal, state, and local taxes may apply. Minimum Bill: Maximum billing demand during previous twelve months times 3.0%of the demand charge, or the actual demand multiplied by the demand charge, whichever is greater plus $1.00 per kW per month of excess transformer capacity requested by customer. Page 1 of 2 105 Large Industrial Demand Electric Service Rate Determination of Billing Demand:The billing demand shall be the highest measured demand (corrected for power factor if required) during any fifteen (15) minute period occurring in the current billing period. Fluctuating Loads: Customers operating equipment having a highly fluctuating or large instantaneous demand, such as welders and X-ray machines, shall be required to pay all non-betterment costs of isolating the load from the balance of ERMU's system so that the load will not unduly interfere with service on ERMU's lines. No motor larger than ten (10) HP (or 7.355 kW) will be allowed to be across- the-line started without notification and written authorization from ERMU. Power Factor Adjustment: Power factor adjustments may be made in the billing demand, when the power factor, as determined by test, at the time of the Customer's maximum use is less than 9895%. If the power factor, as measured by ERMU's electric department, is lower than 9895%,the monthly demand charge may be multiplied by the ratio 98-94 divided by the measured power factor, or at ERMU's option, the power factor may be corrected at the Customer's expense. Billing and Terms of Payment: See ERMU Service Policies Policy(Billing Due Dates, and Penalties and Delinquent Notices.) Terms and Conditions: 1. Usage may be fractionalized on the actual days of service for application of a change in rate. 2. Service will be furnished pursuant to ERMU's rules. 3. Extensions made for service under this schedule are subject to the provisions of ERMU's rules governing Extension of Service and Facilities. 4. The rates set forth herein may be modified by the amount of any governmental changes imposed and levied on transmission,distribution, production, or the sale of electrical power. 5. Exceptions by management approval only. Adopted December 148, 20210 Effective January 1, 20221 Page 2 of 2 106 Elk River -�--- Municipal Utilities TRANSMISSION TRANSFORMED SERVICE RATE Available: Within Elk River Municipal Utilities (ERMU) established service territory. Applicable:Available for new non-residential Customer accounts with projected demand greater than or equal to 10 MW. The Customer must maintain an annual load factor greater than or equal to 75%. A Customer account with a monthly billing demand of less than 10 MW for 12 consecutive months or an annual load factor less than 75% may be switched to another electric rate schedule (additional charges may apply to recover stranded costs). The Customer owned equipment must be in compliance with all policies, procedures, safety requirements, and applicable electrical codes. Character of Service: 3-Phase Transmission Transformed 7,200/12,470-volt, AC, 60 cycles. Special Conditions:The Customer must execute a contract with the utility that commits to a minimum term of service, identifies the annual peak demand and load factor, agrees to the requirements for registering generation with Midcontinent Independent System Operator(MISO) if applicable, and accepts the certain risks that include fluctuating market-based rates and prices established by MISO. The Customer must connect directly to the Utility's distribution substation(s) and provide the location suitable for the installation of the utility owned transformer(s) and metering equipment on the Customer's property. Customer will be responsible for providing suitable wire and connection in the utility owned metering equipment. The metering equipment shall be installed to service one class of business. If additional buildings are required for a given business, they shall be interconnected by the customer to maintain one metered account, unless an exception is approved by management. If additional meters and services are requested by the customer, each shall be treated as a separate customer and billed individually. ERMU equipment and metering must be accessible to ERMU 24 hours per day. Transmission Demand Charge: Transmission Demand charges are determined by monthly maximum metered 15-minute Customer demand, adjusted for applicable MISO zone transmission losses. All applicable MISO transmission charges, including but not limited to the below, shall apply to all transmission demand quantities: A. Schedule 1 B. Schedule 2 C. Schedule 9 D. Schedule 26 Page 1 of 3 107 Transmission Transformed Service Rate Capacity Charge: Capacity charges are determined by Customer selection of one of the options below: A. If customer has its own generation,then the capacity billing determinant shall be the maximum metered 15-minute demand in excess of Customer's registered generation in a given month. To qualify for this billing determinant, Customer's generation must be registered with MISO and comply with all MISO requirements for capacity resources. B. If Customer does not have its own generation, or if Customer fails to register its generation with MISO or fails to comply with all MISO requirements for capacity resources,then the capacity billing determinant shall be monthly maximum metered 15-minute Customer demand. The following charges shall apply to all capacity quantities.The above-defined billing determinant multiplied by: A. $11.0040,60 per kW-month for all capacity quantities during the months of June through September. B. $3.753.50 per kW-month for all capacity quantities during the months of October through May. Energy Charge: Energy billing is determined by actual hourly usage. The following charges shall apply to all energy (kWh) quantities: A. MISO Real-Time Locational Marginal Price at the applicable MISO Node. B. All applicable MISO Ancillary Services Charges. C. MISO Multi-Value Project Charges. D. A charge of$0.0021 per kWh for the cost of compliance with the State of Minnesota's Renewable Energy Standard. E. A charge of$0.01 per kWh to cover all dispatch, billing, and administrative costs.This charge shall be inclusive of all regulatory charges collected by Utility on all customers. City fees, such as franchise and storm water, will apply. Federal, state, and local taxes may apply. Failure to Generate: If Customer has registered generation that does not perform as registered when requested by utility, utility's wholesale supplier, or MISO, Customer shall be responsible for: A. Any financial or other penalties imposed by MISO related to the generation's failure to perform. B. All costs of utility or utility's wholesale supplier to acquire replacement capacity to replace registered generation that did not perform. Transformation Charge: Customer shall pay a monthly transformation charge based on the cost of providing transmission transformed service to Customer, including recovery of costs for any new substation or related facilities. Page 2 of 3 108 Transmission Transformed Service Rate Minimum Bill: Charges for failure to meet minimum peak demand and load factor requirements shall be outlined in the contract between Customer and Utility. Power Factor Adjustment: Power factor adjustments may be made in the billing demand, when the power factor, as determined by test, at the time of the Customer's maximum use is less than 9895%. If the power factor, as measured by ERMU's electric department, is lower than 9895%,the monthly demand charge may be multiplied by the ratio 9895%divided by the measured power factor, or at ERMU's option, the power factor may be corrected at the Customer's expense. Billing and Terms of Payment: See ERMU Service Policies Policy(Billing Due Dates, and Penalties and Delinquent Notices.) Terms and Conditions: 1. Service shall comply with all applicable ERMU Policies and rules. 2. Extensions made for service under this schedule are subject to the provisions of ERMU's rules governing Extension of Service and Facilities. 3. Customer is responsible for any new charges or fees imposed by MISO or any new regulatory or legislative action that results in increased costs to provide power supply to Customer. 4. All rates in this electric rate schedule are subject to change with commission approval. 5. Exceptions by management approval only. Adopted December 14,2021April 13, 2021 Revised May 11,2021 Effective January 1, 2022May 11, 2021 Page 3 of 3 109 Elk River ---1 Municipal Utilities COMMERCIAL CLEAN ENERGY CHOICE PROGRAM RATE Available: Within Elk River Municipal Utilities (ERMU) established service territory. Applicable:To ERMU customers receiving service under another commercial electric rate. This Program is available to commercial customers choosing to purchase renewable energy. Customers' will be required to participate for one calendar year and the applicable Clean Energy Choice incremental charge will apply to all energy sold in the calendar year. The customer shall agree to: 1. Contact ERMU staff to discuss program participation. 2. Sign a contractual agreement for one calendar year prior to December 1 for participation in the upcoming year. 3. Continue to participate in the program annually until customer provides written notice of cancelation to ERMU. 4. Provide written notice of cancelation in the program to ERMU prior to December 1 of a given year for the upcoming year. ERMU shall provide: 1. Estimate of annual incremental charge for participating in program. 2. Clean Energy Choice incremental charge per kWh is $0.002001. 3. The incremental charge applies to all kWh purchases in excess of the Wholesale Renewable Energy Standard. 4. The incremental charge will be calculated based on actual kWh consumed in the billing period. 5. The incremental charge will be calculated as follows: [kWh consumed X (100%-Wholesale Renewable Energy Standard) X$0.002081] 6. Monthly billing statement with the Clean Energy Choice incremental charge identified. 7. Program price changes by November 1 for the coming year. Federal, state and local taxes may apply. Adopted December 148, 20210 Effective January 1, 20221 Page 1 of 1 110 Elk River ---- Municipal Utilities OFF-PEAK DEMAND ELECTRIC SERVICE RATE Available: Within Elk River Municipal Utilities (ERMU) established service territory. Applicable:Available for non-residential customer accounts. Existing or new Customer accounts with actual or projected demand greater than or equal to 50 kW. A Customer account with a billing demand of less than 50 kW for 12 consecutive months will be given the option of switching to the Non-Demand rate.The Customer accounts shall be in compliance with all policies, procedures, and safety requirements, and shall be taken through one meter. (Not applicable to resale, standby or auxiliary service.) Character Of Service: AC, 60 cycles, 120 volts or 120/240 volts, single-phase; 120/208 volts, or 277/480 volts,three-phase. Four wire, 240 volts three-phase will only be applicable to existing customers now being served by this voltage. A customer requiring voltages other than that already established shall be required to provide suitable space location of ERMU's transformers, metering and associated equipment. Special Conditions: One meter shall be installed to service one class of business. If additional buildings are required for a given business, they shall be interconnected by the customer to obtain one meter, unless an exception is approved by management. If additional meters and services are requested by the customer, each shall be treated as a separate customer. Meter equipment must-to be accessible to our service department at any time. Off Peak Demand Service Rate: Basic Monthly Electric Charge:$85.00410 per month. Summer Winter Demand Charge: On-Peak $16.0015.50 $12.0011.58 in kW/ month Off-Peak $6.306.25 $6.30€.. 5 in kW/month Energy Charge: $0.07110680 $0.07140680 in kWh/month On-Peak Demand: Actual demand during On-Peak Periods On-Peak Period: 3:00 PM -10:00 PM weekdays Off-Peak Demand: Actual demand during Off-Peak Periods less On-Peak Demand Off-Peak Period: All non On-Peak Periods Summer Rate:Applicable during the five monthly billing periods of June—October. Winter Rate:Applicable during the seven monthly billing periods of November—May. Rates are subject to application of Power Cost Adjustment (PCA). Page 1 of 2 111 Off-Peak Demand Electric Service Rate Federal,state, and local taxes may apply. Minimum Bill: Maximum billing demand during previous twelve months times 3.0%of the demand charge, or the actual demand multiplied by the demand charge, whichever is greater plus$1.00 per kW per month of excess transformer capacity requested by customer. Determination of Billing Demand:The billing demand shall be the highest measured demand (corrected for power factor if required) during any fifteen (15) minute period occurring in the current billing period. But in no month shall the billing demand be greater than the value in kW determined by dividing the kWh sales for the billing month by 75 hours per month. This billing adjustment applies only if the customer's peak demand DOES NOT occur between the hours of 3:00 p.m. and 10:00 p.m. Fluctuating Loads: Customers operating equipment having a highly fluctuating or large instantaneous demand, such as welders and X-ray machines, shall be required to pay all non-betterment costs of isolating the load from the balance of ERMU's system so that the load will not unduly interfere with service on ERMU's lines. No motor larger than ten (10) HP (or 7.355 kW) will be allowed to be across- the-line started without notification and written authorization from ERMU. In addition, Customers who fail to provide adequate corrective equipment shall be required to own and maintain their own transformers. Power Factor Adjustment: For loads of 50 kW or more, or at the option of ERMU for loads of less than 50 kW, power factor adjustments will be made in the billing demand,when the power factor,as determined by test, at the time of the Customer's maximum use is less than 9895%. If the power factor, as measured by ERMU's electric department, is lower than 9895%,the monthly demand charge may be multiplied by the ratio 9895%divided by the measured power factor, or at ERMU's option,the power factor may be corrected at the Customer's expense. Billing and Terms of Payment: See ERMU Service Policies Policy (Billing Due Dates, and Penalties and Delinquent Notices.) Terms and Conditions: 1. Usage may be fractionalized on the actual days of service for application of a change in rate. 2. Service will be furnished pursuant to ERMU's rules. 3. Extensions made for service under this schedule are subject to the provisions of ERMU's rules governing Extension of Service and Facilities. 4. The rates set forth herein may be modified by the amount of any governmental changes imposed and levied on transmission, distribution, production, or the sale of electrical power. S. Exceptions by management approval only. Adopted December 148, 20210 Effective January 1, 20221 Page 2 of 2 112 Elk River -- Municipal Utilities COMMERCIAL ALL ELECTRIC WITH GROUND SOURCE HEAT PUMP SERVICE RATE Available: Within Elk River Municipal Utilities (ERMU) established service territory. Applicable:To commercial customers having a single meter that includes a ground source heat pump (GSHP) in excess of 50 kW but no more than 150 kW in aggregated name plate capacity of the GSHP equipment (condensers and pumps). Character of Service:AC, 60 cycles, 120/240 volts,three wire,and three-phase. Special Conditions:This Program is available to commercial customers. A GSHP will be the only central heating and/or cooling system for the commercial workspaces. Commercial structures that are classified as Utility and Miscellaneous Group U by the International Code Council are not eligible for this rate. GSHPs that qualify for this program will not be interrupted. A GSHP paired with another heating source such as natural gas, fuel oil, or propane may qualify for the Dual Fuel Program. To qualify for the special rate,the customer shall provide: 1. The GSHP is the only heat source. Only closed loop GSHPs are eligible for this rate beginning September 1, 2016. 2. ERMU and the customer will agree on a meter location prior to the meter socket installation. 3. Commercial customers may have a separate meter to determine the energy and demand of the GSHP. Electric usage for the non-heating/cooling energy use of the building may be metered and priced using the appropriate rate (demand, or non-demand)schedule. 4. Accommodations for a meter and associated wiring installed according to the applicable electrical codes and will be installed by a qualified electrician. 5. Inspection by a State certified inspector and representative of ERMU. 6. Customers on this rate will not be eligible for the Dual Fuel Program. Meter equipment mustte be accessible to our service department at any time. Ground Source Heat Pump Service Rate: Basic Monthly Electric Charge:$35.0030.80 per month Energy Charge: $0.09540 09/kWh Rates are subject to application of Power Cost Adjustment (PCA). Federal,state, and local taxes may apply. Minimum Bill: Basic Monthly Electric Charge. Page 1 of 2 113 Commercial All Electric with Ground Source Heat Pump Service Rate Billing and Terms of Payment:See ERMU Service Policies Policy(Billing Due Dates, and Penalties and Delinquent Notices.) Terms and Conditions: 1. Usage may be fractionalized on the actual days of service for application of a change in rate, or changing from summer to winter or from winter to summer rates. 2. Service will be furnished pursuant to ERMU's rules. 3. Extensions made for service under this schedule are subject to the provisions of ERMU's rules governing Extension of Service and Facilities. 4. The rates set forth herein may be modified by the amount of any governmental changes imposed and levied on transmission, distribution, production, or the sale of electrical power. 5. Exceptions by management approval only. Adopted December 148, 20210 Effective January 1, 20221 Page 2 of 2 114 4 Elk River -�-, Municipal Utilities GROUND SOURCE HEAT PUMP PROGRAM RATE Available: Within Elk River Municipal Utilities (ERMU) established service territory. Applicable:To single family residences, non-demand and demand customers receiving service under another rate, who add a second meter for any of the following controlled loads: Ground Source Heat Pump Rate: This Program is available to residential and commercial customers. A ground source heat pump (GSHP) is a central heating and/or cooling system for residential living spaces or commercial work spaces. Residential living spaces will meet all the applicable Minnesota state building codes. Commercial structures that are classified as Utility and Miscellaneous Group U by the International Code Council are not eligible for this rate. This program is available to residential or commercial customers with a GSHP as their sole heat source. GSHPs that qualify for this program will not be interrupted. A GSHP paired with another heating source such as natural gas,fuel oil, or propane may qualify for the Dual Fuel program. To qualify for the special rate,the customer shall provide: 1. The GSHP is the only heat source. Only closed loop GSHPs are eligible for this rate beginning January 1, 2016. 2. ERMU and the customer will agree on a meter location prior to the meter socket installation. 3. Commercial customers may have a separate meter to determine the load of the heat pumps. Electric usage for the remainder of the building will be metered and priced using the appropriate rate (Demand or Non-Demand). 4. Accommodations for a meter and associated wiring installed according to the applicable electrical codes and will be installed by a qualified electrician. 5. Inspection by a State certified electrical inspector and a representative of ERMU. ERMU shall provide: 1. All electric energy consumed by the primary electric heating system at $0.095401409 per kWh. 2. A meter socket to accommodate the meter in a mutually agreed to location. 3. A meter to measure electricity consumed by the electric heating system. Rates are subject to application of Power Cost Adjustment(PCA). Federal,state, and local taxes may apply. Adopted December 148, 20210 Effective January 1, 20221 Page 1 of 1 115 Elk River ---- Municipal Utilities ELECTRIC VEHICLE CHARGING RATES Residential and Commercial Electric Vehicle Charging Rate Available:Within Elk River Municipal Utilities (ERMU) established service territory. Applicable:To single family residences, non-demand and demand customers receiving service under another rate. Electric Vehicle Charging Rate:This Program is available to all customers of ERMU that own an electrically powered vehicle used for on road transportation. Charging of the vehicle can occur any time but will be subject to on-peak and off-peak energy charges per hour daily. On-peak hours are Monday through Friday between 10 AM and 10 PM. Off-peak hours are Monday through Friday between 10 PM and 10 AM, Saturdays,Sundays, and the following holidays ( New Year's Day, Memorial Day, Independence Day, Labor Day,Thanksgiving Day, and Christmas Day). To qualify for the special rate,the customer shall provide: 1. Electric vehicle charging station that is used for the sole purpose of charging electric vehicles. This charging station must be 240 volt. 2. Customer is responsible for installation of the additional meter socket in a mutually agreed upon location. 3. Inspection by a State Certified electrical inspector of all metering equipment and provide an affidavit to ERMU when completed. ERMU shall provide: 1. All on-peak electric energy consumed by the electric vehicle charging equipment will be at the summer rate of$0.13341270/kWh for the five monthly billing periods of June—October, and the winter rate of$0.121844-69/kWh for the seven monthly billing periods of November—May. 2. All off-peak electric energy consumed by electric vehicle charging equipment will be at the rate of$0.06329692/kWh. 3. This equipment will be available for charging at applicable rates 24 hours per day and is not subject to any load control strategies. 4. All electric energy provided to an account that participates in this rate will be automatically enrolled in the Clean Energy Choice Program at the 100 percent participation level at no additional monthly charge. 5. All electric energy provided for the electric vehicle charging equipment will be 100 percent renewable. 6. Electric meter. 7. Final inspection prior to meter activation to ensure only qualified loads are being supplied through the electric vehicle charging equipment. Page 1 of 2 116 Electric Vehicle Charging Rates Rates are subject to application of Power Cost Adjustment (PCA). Federal,state, and local taxes may apply. Public Electric Vehicle Charging Rate:This rate is available to anyone charging an electric vehicle or plugin electric vehicle at a public electric vehicle charging station owned and operated by ERMU within the ERMU service territory. All persons must have an active ChargePoint account or have the capability to create a ChargePoint account prior to utilizing the charging equipment for an electric vehicle or plug- in hybrid electric vehicle. To charge at the public charging stations customers shall: 1. Utilize their existing ChargePoint account or create a new account using a credit or debit card prior to charging the electric vehicle or plug-in hybrid. ERMU shall provide: 1. Access to public electric vehicle charging stations located in the ERMU service territory. 2. The chargers will be either level two (240 volt) or DC Fast Charging(480 volt) charging equipment. 3. Electric energy consumed at the level two charging stations will be at a rate of$0.1500 per kWh at all times. 4. Electric energy consumed at the DC Fast Charging station will be at a rate of$0.2000 per kWh at all times. 5. Electric energy provided at the public electric vehicle charging stations will be 100 percent renewable. Federal, state, and local taxes may apply. Adopted December 148, 20210 Effective January 1, 20221 Page 2 of 2 117 Elk River ---- Municipal Utilities MORATORIUM EFFECTIVE FEBRUARY 14, 2017 ON THE FOLLOWING LOAD CONTROL PROGRAMS ENERGY MANAGEMENT PROGRAM RATES Available: Within Elk River Municipal Utilities (ERMU) established service territory. Applicable:To single family residences, non-demand and demand customers receiving service under another rate, who add a second meter for any of the following controlled loads: Dual Fuel Space Heating Rate: This Program is available to residential customers only. A dual fuel space heating system consists of an electric heating system and a secondary non-electric space heating system both capable of heating the living space at design conditions. Interruptions of the electric heating system will usually occur for up to 12 hours daily on peak winter days and a maximum of 400 hours per heating season. To qualify for the special rate, the customer shall provide: 1. An electric space heating system which can be interrupted by a single 5 amp rated relay. 2. A secondary non-electric space heating system capable of automatic start-up and continuous operation upon interruption of the electric heating system. 3. Obtain a load control device furnished by ERMU. 4. Accommodations for a meter and load control device and associated wiring installed according to the applicable electrical codes, and installed by a qualified electrician. 5. Inspection by a State certified electrical inspector and a representative of ERMU. 6. Radiant heat in the slab of the building qualifies for dual fuel, not electric thermal storage. 7. Dual Fuel is not allowed in garages, pole sheds, or any structure that does not confirm to the residential building code. 8. Exceptions by management approval only. ERMU shall provide: 1. All electric energy consumed by the primary electric heating system at $0.06320602 per kWh. I 2. During peak load conditions, ERMU will turn customer controlled electrical heat off for extended periods of time as stated above. 3. A meter to measure electricity consumed by the electric heating system. 4. A load control device and meter socket to accommodate the meter. Rate is subject to application of Power Cost Adjustment (PCA). Federal, state and local taxes may apply. Page 1 of 3 118 MORATORIUM EFFECTIVE FEBRUARY 14, 2017 ON THE Ff1 i nWtiril\ir LOAD CONTROL PROGRAMS Energy Management Program Rates Electric Thermal Storage (ETS)Space Heating Rate: This Program is available to all ERMU customers. An ETS space heating system is designed to store heat produced by electricity generated during eight off-peak hours for use in heating during the remaining on-peak hours daily. Off-peak hours typically occur between 11 PM and 7 AM. Qualifying ETS configurations may be central storage furnaces, room storage heaters or slab (deep heat) systems including combinations of same. To qualify for the special rate,the customer shall provide: 1. An ETS space heating system listed by UL or some other nationally recognized testing agency which can be interrupted by a single 5 amp rated relay. 2. Obtain a load control device from ERMU. 3. Accommodations for a meter and load control device and associated wiring installed according to the applicable electrical codes, and installed by a qualified electrician. 4. Inspection by a State certified electrical inspector and a representative of ERMU. ERMU shall provide: 1. All electric energy consumed by this ETS system at$0.0486046-3 per kWh. 2. This equipment will be energized only for 8 off peak hours daily. Additional on-time is provided on weekend days and holidays. 3. A meter to measure electricity consumed by the ETS space heating system. 4. A load control device which will automatically control ETS space heating system during on-peak hours. Rate is subject to application of Power Cost Adjustment (PCA). Federal, state, and local taxes may apply. Electric Thermal Storage(ETS)Water Heating Rate:This Program is available to all ERMU customers. An ETS water heater is designed with extra storage capacity to provide total domestic hot water needs from electricity consumed only during eight off-peak hours daily. Off-peak hours typically occur between 11 PM and 7 AM. Qualifying ETS configurations may be a large single tank, dual tanks plumbed in series, or an electric and non-electric tank plumbed in series with the electric placed on the cold water side. Electric water heater must have an energy factor of.91 or more and a minimum of 80 gallons of storage capacity. To qualify for the special rate,the customer shall provide: 1. An ETS water heating system which can be interrupted directly by a single 30 amp rated relay. 2. Obtain a load control device from ERMU. 3. Accommodations for a meter and load control device and associated wiring installed according to the applicable electrical codes, and installed by a qualified electrician. 4. Inspection by a State certified electrical inspector and a representative of ERMU. 5. This rate is not available for hot water use in any production process for Commercial and Industrial users. Page 2 of 3 119 MORATORIUM EFFECTIVE FEBRUARY 14 7017 ON THE FOLLOWING LOAD CONTROL PROGRAMS Energy Management Program Rates ERMU shall provide: 1. All electric energy consumed by the ETS water heater at$0.048604€3 per kWh. 2. This equipment will be energized only for 8 off-peak hours daily. 3. A meter to measure electricity consumed by the ETS water heater. 4. A load control device and meter socket to accommodate the off-peak meter. Rate is subject to application of Power Cost Adjustment (PCA). Federal, state, and local taxes may apply. Adopted December 148,20210 Effective January 1, 20221 Page 3 of 3 120 4*- Elk River Municipal Utilities STREET/SECURITY LIGHT SERVICE RATE Available:To any customer meeting Elk River Municipal Utilities (ERMU) criteria for service under this schedule, and whose lighting needs are not being furnished under any other schedule. Installation costs will be determined by ERMU per the Utilities Fee Schedule or on a time and materials basis. Applicable:As determined by ERMU, but generally to non-metered roadway and area lighting. Character Of Service: 120/240 volts, AC, as available. Street/Security Light Service Federal, state, and local taxes may apply. Type Monthly Rate Per Fixture Standard Low Output (<249 Watt HPS, <74 Watt LED) $10.00 Standard Medium Output (250-399 Watt HPS, 75-124 Watt LED) $16.00 Standard High Output (400 Watt or larger HPS, 125 Watt or larger LED) $21.00 Standard Low Output with Decorative Pole (<74 Watt LED) $18.00 Decorative Medium Output with Decorative Pole (75-124 Watt LED) $26.0024.00 Ownership of Equipment: ERMU will install, own, and operate the lights, including fixtures and control equipment, unless otherwise agreed upon by ERMU and the Customer. Lamp Replacements: Lamp replacements will be made by ERMU. Billing and Terms of Payment: See ERMU Service Policies Policy (Billing Due Dates, and Penalties and Delinquent Notices.) General Terms and Conditions Applicable To Non-Metered Lighting Service: 1. Area lighting installed on ERMU poles shall not be of the type that interferes with climbing room, work space, or wire clearance as defined by the National Electrical Safety Code and is to be installed below the secondary line and service drops, all per ERMU's specification. 2. All area lights installed under this schedule shall be equipped with a photo-electric control which will limit the hours of illumination from dusk to dawn (approximately 4,400 hours per year). 3. The rates set forth herein may be modified by the amount of any governmental changes imposed and levied on transmission, distribution, production, or the sale of electrical power. Page 1 of 2 121 Street/Security Light Service Rate 4. Exceptions by management approval only. Adopted December 148, 20210 Effective January 1, 20221 Page 2 of 2 122 Elk River Municipal Utilities WATER SERVICE RATES Available: To all customers who have municipal water service available at their property, lying within the corporate limits of the City of Elk River. Special Conditions: Each customer served by one meter. Multiple living entities, such as apartments, may be served by a combined meter upon approval of the Elk River Municipal Utilities (ERMU) and acceptance of applicable charges. Special Charges:A basic monthly water charge shall be applied to each meter based on the meter size according to the schedule below, and is separate from any water use. Included in the basic monthly water charge is $0.81 that is collected on a monthly basis from each service connection (excluding irrigation only accounts)to recover the total annual cost of$9.72 for the State of Minnesota Safe Water Testing Program (Minnesota Statutes 144.3831). Water Rates: BASIC MONTHLY 1st TIER 2nd TIER 3rd TIER METER TYPE CHARGE Cost per 1000 Cost per 1000 Cost per gallons gallons 1000 gallons Residential $9.649:40 $1.94149 $3.50 $4.00 Commercial % $11.5611.28 $1.94 89 $3.50 $4.00 Commercial 1 $12.8612.55 $1.941.89 $3.50 $4.00 Commercial 1% $14.1613.81 $1.94449 $3.50 $4.00 Commercial 1 Y2 $15.441 $1.941.89 $3.50 $4.00 Commercial 2 $20.5720.07 $1.941.89 $3.50 $4.00 Commercial 3 $44.9943.89 $1.9411.89 $3.50 $4.00 Commercial 4 $61.71€0-28 $1.941.89 $3.50 $4.00 Commercial 6 $89.988 9 $1.944-89 $3.50 $4.00 Commercial 8 $1.944:59 $3.50 $4.00 $122.13119.15 Commercial Irrigation Seasonally or $20.5720.07 $3.50 $4.00 Permanently Installed Federal,state, and local taxes may apply. Page 1 of 2 123 Water Service Rates Residential Rate Tier Definition: First Tier Rate =0—9,000 gallons per month. Second Tier Rate= Between 9,000 and 15,000 gallons per month. Third Tier Rate=Above 15,000 gallons per month. Commercial Rate Tier Definition: First Tier Rate=0—1.1 X previous year's winter measurement period average monthly consumption. Second Tier Rate= Between 1.1 X previous year's winter measurement period average monthly consumption to 1.1 X previous year's winter measurement period average monthly consumption + 40,000 gallons. Third Tier Rate=Above 1.1 X previous year's winter measurement period average monthly consumption +40,000 gallons. Winter Measurement Period Definition: December—April billing cycles. For new customers, if a minimum of 3 winter months previous year's history is not available to establish the Tier amount,the First Tier rate shall be utilized until a minimum of 3 months history is established. Commercial irrigation is not eligible for First Tier Rate as there is no winter use. Minimum Bill: Basic monthly water charge plus any charges applicable to multiple living entities. Billing and Terms of Payment:See ERMU Service Policies Policy (Billing Due Dates, and Penalties and Delinquent Notices.) Adopted December 148, 20210 Effective January 1, 20212 Page 2 of 2 124 Elk River Municipal Utilities 2022 Utilities Fee Schedule ELECTRIC New Residential Electric Connection - Developer- Lot with ERMU water service $475.00 New Residential Electric Connection -Developer-Lot without ERMU water service $575.00 New Electric Connection -Builder $875.00 New Wire Footages over 200'(per foot) $4.00 New Service Frost Trenching(per foot) $5.00 New Commercial&Industrial Electric Connection 50% Service Upgrades or Additions for Existing Customers 100% Minimum Temporary Electric Service Fee-Existing Transformer $220.00 Minimum Temporary Electric Service Fee-Without Existing Transformer $850.00 Street Light-30' Decorative Pole with 6'Arm and Cobra Fixture $2,700.00 Street Light-23' Decorative Pole with Cobra Fixture $1,800.00 Street Light-14' Decorative Pole with Cobra Fixture $4,100.00 Street Light-14' Decorative Pole with Acorn Fixture $5,300.00 Security Light-Wood Pole with Fixture $975.00 Security Light-Existing PoLe $125.00 Pole Attachment Fee(per pole) $6.50 Manual Meter Reading Fee(per month) $10.00 Meter Installation Fee(per individually metered apartment unit) $20.00 WATER Water Access Charge= Water Connection Charge+Water Availability Charge $3,990.00 Water Connection Charge(Per Plumbing Unit)-Builder $3,600.00 Water Availability Charge(Per Plumbing Unit)-Developer $390.00 Abandoned Water Service $2,500.00 Backflow Preventer Device Non-Compliance(per month) $100.00 Deposit for 5/8'Hydrant Meter $150.00 Deposit for 2 1/2'Hydrant Meter $1,000.00 Hydrant Water Sales-Rental(per week) $50.00 Hydrant Water Sales-Units(per 1000 gallons) $4.00 Hydrant Wrench $40.00 Manual Meter Reading Fee(per month) $10.00 Private Hydrant Maintenance Program Monthly Fee $5.00 ADMINISTRATIVE Administrative Fee for Continued Submission of Checks After No-Check Notice Given $20.00 Billable Cost of Materials Markup 15% Billable Labor Markup 55% Billable Vehicle/Equipment(per employee per hour) $30.00 Commerical Application Fee $20.00 Electric Service Disconnect/Trip Fee- Meter Technician $50.00 Electric Service Disconnect/Trip Fee-Line Crew $150.00 Water Service Disconnect/Trip Fee-Water Operator $100.00 Meter Tampering Fee $250.00 Meter Testing Fee $50.00 NSF Fee $20.00 Penalty Amount 10% Photocopies(per page) $0.25 Red Tag Handling Fee $20.00 Adopted by the Utilities Commission on November 9, 2021, under authority per Minnesota Statute 412.361 125