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5.3 ERMUSR 12-13-2022��i Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Melissa Karpinski — Finance Manager MEETING DATE: AGENDA ITEM NUMBER: December 13, 2022 5.3 SUBJECT: 2023 Annual Business Plan (Budget, Schedule of Rates & Fees) ACTION REQUESTED: Adopt the 2023 Annual Business Plan BACKGROUND: In November, the preliminary 2023 Annual Business Plan was presented to the Commission. There have been some changes due to 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 2023. Notable items in the electric budget for 2023 are: • Up to a 3.25% wage adjustment for all pay plan groups. • Conservative estimate for usage and growth. • 21% purchase power expense increase. • No landfill gas plant related expenses due to decommissioning in 2022. • Contracting of tree trimming for $140k. • Increased depreciation expense due to the new field services building. • Increased Customer Accounts expense due to increased number of customer satisfaction surveys. • Administrative expenses for having an administrations director for the full year, UPMIC distribution's change in percentage, expenses for potential bonding for AMI project*, and Travel and Training includes some additional expenses for the new general manager. • Replacement of Bucket Truck #4. • Replacement of Vactron #50. • Replacement of Truck #20. • Shared cost in the replacement for Vehicle #1 for administration and Pickup Trucks #2 and #32 for technical services. • Highway 169 Redefine project from reserves. • Otsego transformer replacement from reserves. Page 1 of 2 100 • County Road 12 interconnection agreement with Connexus from reserves. • Electric Service Territory acquisition loss of revenue for Areas 1&2, 3&4, 5&6, and 7&8 from reserves. *AMI project from either an inter -fund borrowing or bonding. Water Budget and Rates As discussed in November, we are proposing a 2% rate increase for 2023. Notable items in the water budget for 2023 are: • Up to a 3.25% wage adjustment for all pay plan groups. • Conservative estimate for usage and growth. • Increased Customer Accounts expense due to increased number of customer satisfaction surveys. • Administrative expense for administrations director for a full year, UPMIC distribution's change in percentage, Travel and Training includes some additional expenses for the new general manager. • Replacement of Pickup Truck #3. • Shared cost in the replacement for Vehicle #1 for administration and Pickup Truck #2 and #32 for technical services. • Water main construction from reserves. • AMI project from reserves. Summary Submitted for approval is the 2023 Annual Business Plan which includes the 2023 Budget and the 2023 Schedule of Rates & Fees. The 2023 fees were already approved by the Commission in November and are being presented here unchanged. The adoption of the 2023 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% for water. ATTACHMENTS: • Proposed 2023 Annual Business Plan o 2023 Budget o 2023 Schedule of Rates & Fees Page 2 of 2 101 -Ith, m- �■ Municipal Utilities 2023 Annual Business Plan 102 TABLE OF CONTENTS 2023 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 2023 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 103 Municipal Utilities 2023 Budget 104 ELK RIVER MUNICIPAL UTILITIES SUMMARY OF YEAR 2023 BUDGETS ELECTRIC BUDGET SUMMARY 2023 ELECTRIC REVENUE $ 47,672,142 ELECTRIC EXPENDITURES (46,207,114) ELECTRIC NET FOR CAPITAL 1,465,028 3.07% Margin DEBT RETIREMENT (915,000) NET LESS DEBT PRINCIPAL PMTS 550,028 CAPITAL EQUIPMENT/CONSTRUCTION (8,213,440) FUND FROM RESERVES 250,000 * Highway 169 redefine FUND FROM RESERVES 500,000 * Otsego Transformer Replacement FUND FROM RESERVES 1,224,190 * Territory Acquisition Areas 18,2, 3&4, 58,6, 7&8 Loss of Revenue BONDING or INTER -FUND BORROWING 2,500,000 AMI NET (3,189,222) DEPRECIATION 3,220,836 NET TO RESERVES 31,614 * Note that this is separate from above funding of draw on reserves WATER BUDGET SUMMARY 2023 WATER REVENUE $ 3,461,947 WATER EXPENDITURES (3,409,180) WATER NET FOR CAPITAL 52,767 1.52% Margin DEBT RETIREMENT (60,000) NET LESS DEBT PRINCIPAL PMTS (7,233) CAPITAL EQUIPMENT/CONSTRUCTION (3,139,750) FUND FROM RESERVES 1,198,000 * AMI FUND FROM RESERVES 1,250,000 * Water Main Construction (Schoolview) BONDING - NET (698,983) DEPRECIATION 1,202,937 NET TO RESERVES 503,954 * Note that this is separate from above funding of draw on reserves * Currently, target reserves are met. 105 ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA 2023 ELECTRIC BUDGET 2023 Annual 2022 Annual 2021 Annual Electric Budget Budget Actual Revenue Operating Revenue Elk River 440.4411 ELECT SALES- ELK RIVER RESIDENTIAL 14,039,146 13,522,235 13,020,814 440.4412 ELECT SALES - ELK RIVER NON -DEMAND 3,461,850 3,228,253 3,030,512 440.4413 ELECT SALES - ELK RIVER DEMAND 20,243,229 19,635,955 18,940,232 440.4461-4463 PCA SALES REVENUE- ELK RIVER 4,297,101 9/t amountadded 2023 Total for Elk River: 42,041,325 36,386,443 34,991,559 Otsego 440.4416 ELECT SALES- OTSEGO RESIDENTIAL 1,420,072 1,367,786 1,297,397 440.4417 ELECT SALES - OTSEGO NON -DEMAND 454,649 423,970 439,205 440.4418 ELECT SALES - OTSEGO DEMAND 1,180,452 1,123,576 1,241,021 440.4464-4466 PCA SALES REVENUE - OTSEGO 330,484 9/t account added 2023 Total for Otsego: 3,385,656 2,915,332 2,977,625 Rural Big Lake 440.4421 ELECT SALES- BIG LAKE RESIDENTIAL 214,102 206,219 188,172 440.4422 ELECT SALES - BIG LAKE NON -DEMAND 4,513 4,208 4,468 440.4467-4468 PCA SALES REVENUE - BIG LAKE 20,043 - - 9/t account added 2023 Total for Rural Big Lake: 238,658 210,428 192,642 Dayton 440.4431 ELECT SALES- DAYTON RESIDENTIAL 221,646 213,485 196,462 440.4432 ELECT SALES - DAYTON NON -DEMAND 39,638 36,964 38,223 440.4469-447 PCA SALES REVENUE- DAYTON 24,187 9/t a-untadded 2023 Total for Dayton: 285,471 250,449 234,686 Public St & Hwy Lighting 440.4414 ELECT SALES - SEC LTS 260,000 250,000 252,069 Total for Public St & Hwy Lighting: 260,000 250,000 252,069 Other Electric Sales 440.455 SUB -STATION CREDIT 4,800 4,800 4,800 440.4554 RATE INCREASE 773,546 Total for Other Electric Sales: 4,800 4,800 778,346 Total for Operating Revenue: 46,215,911 40,017,451 39,426,927 Other Operating Revenue Interest/Dividend Income 460.4691 INTEREST & DIVIDEND INCOME 50,000 80,000 52,514 Total for Interest/Dividend Income: 50,000 80,000 52,514 Customer Penalties 470.4701 CUSTOMER DELINQUENT PENALTIES 250,000 235,000 Total for Customer Penalties: 250,000 235,000 - LFG Project 470.4721 LFG PROJECT 836,000 1,019,096 Total for LFG Project: - 836,000 1,019,097 Connection Fees 470.4702 DISCONNECT& RECONNECTCHARGE 220,000 220,000 263,330 Total for Connection Fees: 220,000 220,000 263,330 Misc Revenue 470.4703 MISC ELEC REVENUE - TEMP CHG 2,000 2,000 2,612 470.4704 STREET LIGHT 20,000 20,000 51,590 470.4715 TRANSMISSION INVESTMENTS 649,231 600,000 525,384 470.4722 MISC NON -UTILITY 90,000 90,000 102,899 470.4723 GAIN ON DISPOSITION OF PROPERTY - - - 470.4739 PERA PENSION REVENUE - - 4,869 470.477 CONTRIBUTIONS FROM CUSTOMERS 175,000 175,000 385,316 470.478 CONTRIBUTIONS FROM GRANTS Total for Misc Revenue: 936,231 887,000 1,072,671 Total Other Revenue Total for Total Other Revenue: 1,456,231 2,258,000 2,407,612 Total Revenue 47,672,142 42,275,451 41,834,539 12.8% Expenses Purchased Power 540.5551 PURCHASED POWER 24,207,981 27,017,920 28,169,145 540.5553 ENERGY ADJUSTMENT CLAUSE 8,558,044 9/t account added 2023 Total for Purchased Power: 32,766,025 27,017,920 28,169,145 21.3% Operating & Mtce Expense 540.5461 OPERATING SUPERVISION 137,000 143,000 108,275 540.5471 DIESEL OIL FUEL 10,000 10,000 7,222 540.5472 NATURALGAS 25,000 17,500 23,963 540.5483 ELECTRIC & WATER CONSUMPTION - PLANT 34,000 30,000 28,591 540.5484 PLANT SUPPLIES & OTHER EXPENSE 13,000 13,000 11,401 540.5491 MISC POWER GENERATION EXPENSE 8,000 8,000 6,281 540.5521 MAINTENANCE OF STRUCTURE - PLANT 20,000 15,000 11,633 540.5531 MTCE OF PLANT ENGINES/GENERATORS 39,000 25,000 37,825 540.5541 MTCE OF PLANT/LAND IMPROVEMENT 35,000 30,000 24,715 Total for Operating & Mice Expense: 321,000 291,500 259,909 Landfill Gas 550.505 LANDFILL GAS PLANT PURCHASED GAS - 151,794 172,348 Per contract ending 10/2022 550.5051 LANDFILL GAS PLANT OPERATIONS & MTCE - 415,187 543,031 550.5052 LANDFILL GAS PLANT ADMINISTATION - 25,550 5,188 550.5053 LANDFILL GAS PLANT INSURANCE - 19,950 19,389 106 ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA 2023 ELECTRIC BUDGET 2023 Annual 2022 Annual 2021 Annual Electric Budget Budget Actual 550.5054 LANDFILL GAS PLANT MTCE 650 2,763 Total for Landfill Gas: - 613,131 742,722 Transmission Expense 560.562 TRANSMISSION MTCE AND EXPENSE 70,000 66,700 67,470 Total for Transmission Expense: 70,000 66,700 67,471 Distribution Expense 580.5801 REMOVE EXISTING SERVICE & METERS 1,050 2,500 397 580.5821 SCADA EXPENSE 44,000 44,000 42,351 580.5831 TRANSFORMER EXPENSE OH & URD 15,000 13,000 16,107 580.5851 MTCE OF SIGNAL SYSTEMS 2,000 2,000 1,350 580.5861 METER EXPENSE - REMOVE & RESET 1,500 1,000 1,495 580.5871 TEMP SERVICE - INSTALL & REMOVE 3,500 2,000 2,586 580.5881 MISC DISTRIBUTION EXPENSE 300,000 280,000 243,531 580.589 INTERCONNECTION CARRYING CHARGE 2,416 2,416 2,416 Total for Distribution Expense: 369,466 346,916 310,235 Maintenance Expense 590.5911 MTCE OF STRUCTURES 46,000 30,000 25,034 590.5921 MTCE OF SUBSTATIONS 35,000 26,000 12,180 590.5922 MTCE OF SUBSTATION EQUIPMENT 77,000 69,000 72,011 590.5931 MTCE OF OH LINES/TREE TRIM 225,000 225,000 59,360 $1401, contractors 590.5932 MTCE OF OH LINES/STANDBY 40,000 36,000 36,674 590.5933 MTCE OF OH PRIMARY 170,000 170,000 152,255 590.5941 MTCE OF URD PRIMARY 170,000 165,000 176,888 590.5943 LOCATE ELECTRIC LINES 106,000 105,100 102,561 590.5944 LOCATE FIBER LINES 1,000 1,000 308 590.5951 MTCE OF LINE TRANSFORMERS 60,000 60,000 51,790 590.5961 MTCE OF STREET LIGHTING 45,000 45,000 24,711 590.5962 MTCE OF SECURITY LIGHTING 15,000 10,000 13,815 590.5971 MTCE OF METERS 85,000 80,000 64,016 590.5972 VOLTAGE COMPLAINTS 10,000 10,000 7,420 590.5981 SALARIES TRANSMISSION & DISTRIBUTION 30,500 30,000 25,935 590.5985 ELECTRIC MAPPING 95,000 90,000 79,158 590.5991 MTCE OF OH SECONDARY 25,000 25,000 19,784 590.5992 MTCE OF URD SECONDARY 60,000 50,000 47,085 590.5995 TRANSPORTATION EXPENSE 245,000 240,000 221,526 Total for Maintenance Expense: 1,540,500 1,467,100 1,192,521 Depreciation & Amortization 595.8031 DEPRECIATION 2,552,700 2,436,698 2,289,550 595.8032 AMORTIZATION 668,136 668,135 668,135 Total for Depreciation & Amortization: 3,220,836 3,104,833 2,957,685 Interest Expense 596.8071 INTEREST EXPENSE- BONDS 870,695 906,275 818,495 596.8075 INTEREST EXPENSE - DEFEASED BONDS - - (276) 597.8281 AMORTIZATION OF DEBT DISCOUNT (59,863) (60,766) (61,039) Total for Interest Expense: 810,832 845,509 756,910 Other Operating Expense 597.8165 EV CHARGING EXPENSE 7,731 4,240 4,010 597.8213 LOSS ON DISPOSITION OF PROP (CAPITAL) 15,500 12,500 45,213 597.8263 OTHER DONATIONS 3,000 3,000 1,177 597.8265 MUTUALAID - - 6,860 597.8302 PENSION EXPENSE 45,000 45,000 (283,382) 597.8303 OPEB EXPENSE - - (208,273) 597.8311 OTHER INTEREST EXPENSE 378 - (980) 597.8341 INTEREST EXPENSE - METER DEPOSITS 2,500 2,000 890 Total for Other Operating Expense: 74,109 66,740 (434,484) Customer Accounts Expense 900.9021 METER READING EXPENSE 47,000 42,100 44,749 900.903 DISCONNECT/RECONNECT EXPENSE 22,000 16,100 17,106 900.9051 MISC CUSTOMER ACCOUNTS EXPENSE UTILITY 312,500 272,000 269,231 Customer satisfaction survey 900.9061 BAD DEBT EXPENSE & RECOVERY 20,000 20,000 6,672 Total for Customer Accounts Expense: 401,500 350,200 337,760 Administrative Expense 920.9201 SALARIES OFFICE & COMMISSION 950,000 860,000 773,608 Admin Director 920.9202 SALARIES COVID-19 - - 21,040 920.9205 TEMPORARY STAFFING 4,000 4,000 - 920.9211 OFFICE SUPPLIES 107,000 107,000 74,004 920.9212 ELECTRIC & WATER CONSUMPTION - OFFICE 29,000 29,000 24,641 920.9213 BANK FEES 2,500 2,500 2,380 920.9221 LEGAL FEES 40,000 32,000 22,855 920.9231 AUDITING FEES 18,520 18,040 16,960 920.9241 INSURANCE 186,000 182,884 152,429 920.926 UTILITY SHARE -DEFERRED COMP 124,000 123,500 102,611 920.9261 UTILITY SHARE - MEDICAL/DENTAL/DISABIL 858,481 847,000 759,627 920.9262 UTILITY SHARE -PERA 288,000 280,000 263,991 920.9263 UTILITY SHARE - FICA 280,000 265,000 253,522 920.9264 EMPLOYEE SICK PAY 150,000 133,025 140,780 920.9265 EMPLOYEE HOLIDAY PAY 157,500 146,991 152,302 920.9266 EMPLOYEE VACATION & PTO PAY 250,000 231,961 226,253 920.9267 UPMIC DISTRIBUTION 91,015 60,000 58,665 920.929 LONGEVITY PAY 16,369 - - 920.9291 CONSULTING FEES 80,000 55,000 79,398 Bonding 920.9301 TELEPHONE 41,000 31,300 31,253 107 ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA 2023 ELECTRIC BUDGET 2023 Annual Electric Budget 920.9302 ADVERTISING 15,000 920.9303 DUES & SUBSCRIPTIONS - FEES 172,675 920.9305 SCHOOLS & MEETINGS 259,925 920.9321 MTCE OF GENERAL PLANT &OFFICE HEATING 7,600 Total for Administrative Expense: 4,128,585 General Expense 920.9269 CIP REBATES - RESIDENTIAL 920.927 CIP REBATES -COMMERCIAL 920.9271 CIP -ADMINISTRATION 920.9272 CIP - MARKETING 920.9273 CIP - LABOR 920.9274 CIP REBATES - LOW INCOME 920.9275 CIP - LOW INCOME LABOR 920.9281 ENVIRONMENTAL COMPLIANCE 920.9306 MISC GENERAL EXPENSE Total for General Expense: Total Expenses (before Operating Transfers) Operating Transfer Operating Transfer/Other Funds 597.8262 TRANSFER TO CITY ELK RIVER REVENUE Total for Operating Transfer/Other Funds: Utilities & Labor Donated 597.8261 UTILITIES & LABOR DONATED TO CITY Total for Utilities & Labor Donated: Total Operating Transfer Total for Total Operating Transfer: Net Income Profit(Loss) 100,170 189,583 19,700 30,039 178,511 18,000 9,887 34,219 2,500 582,609 44,285,461 2022 Annual 2021 Annual Budget Actual 13,000 13,860 130,365 230,896 Bonding 224,212 118,020 7,500 7,313 3,784,279 3,526,417 57,907 49,218 232,200 104,250 85,301 5,418 47,000 27,462 100,512 143,124 18,500 18,635 9,750 10,474 34,000 32,269 2,500 5,574 587,670 396,426 38,542,498 38,282,718 15% 1,681,653 1,455,458 1,407,734 1,681,653 1,455,458 1,407,734 240,000 230,000 224,814 240,000 230,000 224,814 1,921,653 1,685,458 1,632,548 1,465,028 2,047,495 1,919,272 ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA 2023 WATER BUDGET 2023 Annual 2022 Annual 2021 Annual Water Budget Budget Actual Revenue Operating Revenue Water Sales 610.6101 Water Sales Residential 1,397,043 1,359,866 1,764,627 610.6102 Water Sales Commercial 850,022 842,025 925,451 610.6103 Water Sales Irrigation 256,349 243,025 359,060 Total for Water Sales: 2,503,413 2,444,916 3,049,140 Total Operating Revenue 2,503,413 2,444,916 3,049,139 Total for Total Operating Revenue: 2,503,413 2,444,916 3,049,140 Other Operating Revenue Interest/Dividend Income 460.4691 Interest & Dividend Income 35,000 35,000 24,676 460.4692 Other Interest/Misc Revenue 1,500 1,000 1,310 Total for Interest/DividendIncome: 36,500 36,000 25,988 Customer Penalties 620.6301 Customer Penalties 28,000 18,000 - Total for Customer Penalties: 28,000 18,000 - Connection Fees 620.6401 Water/Access/Connections Fees 450,000 430,000 548,947 620.6402 Customer Connection Fees 40,000 35,000 42,709 620.6407 Bulk Water Sales/Hydrant Rental 28,000 15,000 28,810 Total for Connection Fees: 518,000 480,000 620,467 Misc Revenue 470.4722 Misc Non -Utility 50 - 31 470.4739 Para Pension Revenue - - 910 620.626 Transfer In From City - - 195,245 620.6403 Miscellaneous Revenue 500 - 1,141 620.6323 Gain On Disposition Of Property - - - 620.6404 Hydrant Maintenance Program 13,500 13,000 13,209 620.6405 Contributions from Developers 65,000 65,000 552,919 620.6406 Water Tower Lease 296,984 286,153 275,727 Total for Misc Revenue: 376,034 364,153 1,042,472 Total Other Revenue 958,534 898,153 1,688,927 Total for Total Other Revenue: 958,534 898,153 1,688,927 Total Revenue 3,461,947 3,343,069 4,738,067 Expenses Production Expense 700.7021 MTCE OF STRUCTURES 90,000 75,000 173,376 Total for Production Expense: 90,000 75,000 173,376 Pumping Expense 710.7101 SUPERVISION 69,000 66,000 57,004 710.7181 ELECTRIC & GAS UTILITIES 288,000 270,000 263,078 710.7182 SAMPLING 15,000 15,000 14,339 710.7183 CHEMICAL FEED 50,000 36,000 36,273 710.722 MTCE OF WELLS 165,000 160,000 125,418 710.723 SCADA- PUMPING 16,000 16,000 5,140 Total for Pumping Expense: 603,000 563,000 501,438 Distribution Expense 730.7301 MTCE OF WATER MAINS 120,000 120,000 226,593 730.7309 LOCATE WATER LINES 17,250 17,000 16,132 730.7312 WATER METER SERVICE 66,000 55,000 60,844 730.7316 BACKFLOW DEVICE INSPECTION 16,000 15,000 9,055 Labor and software expense 730.7321 MTCE OF CUSTOMERS SERVICE 30,500 30,500 28,116 730.7325 WATER MAPPING 12,500 12,500 8,732 730.7331 MTCE OF WATER HYDRANTS - PUBLIC 19,000 18,000 13,517 730.7332 MTCE OF WATER HYDRANTS - PRIVATE 5,000 5,000 5,093 730.7341 WATER CLOTHING/PPE 9,000 7,000 13,542 730.7391 WAGES WATER 7,300 9,500 6,138 730.7395 TRANSPORTATION EXPENSE 16,500 15,000 10,198 730.7399 WATER PERMIT 18,600 18,600 14,875 Total for Distribution Expense: 337,650 323,100 412,901 Depreciation & Amortization 595.8031 DEPRECIATION 1,202,937 1,199,124 1,139,801 Total for Depreciation & Amortization: 1,202,937 1,199,124 1,139,802 109 ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA 2023 WATER BUDGET Water Interest Expense 596.8071 INTEREST EXPENSE - BONDS 596.8075 INTEREST EXPENSE - DEFEASED BONDS 597.8281 AMORTIZATION OF DEBT DISCOUNT/PREMIUM Total for Interest Expense: Other Operating Expense 597.8213 LOSS ON DISPOSITION OF PROP (CAPITAL) 597.8264 DAM MAINTENANCE EXPENSE 597.8302 PENSION EXPENSE 597.8303 OPEB EXPENSE 597.8311 OTHER INTEREST EXPENSE 597.8341 INTEREST EXPENSE - METER DEPOSITS Total for Other Operatin Expense: Customer Accounts Expense 900.9021 METER READING EXPENSE 900.9051 MISC CUSTOMER ACCOUNTS EXPENSE UTILITY 900.9061 BAD DEBT EXPENSE & RECOVERY Total for Customer Accounts Expense: Administrative Expense 920.9201 SALARIES OFFICE & COMMISSION 920.9202 SALARIES COVID-19 920.9205 TEMPORARY STAFFING 920.9211 OFFICE SUPPLIES 920.9212 ELECTRIC & WATER CONSUMPTION - OFFICE 920.9213 BANK FEES 920.9221 LEGAL FEES 920.9231 AUDITING FEES 920.9241INSURANCE 920.926 UTILITY SHARE - DEFERRED COMP 920.9261 UTILITYSHARE- MEDICAL/DENTAL/DISABIL 920.9262 UTILITY SHARE - PERA 920.9263 UTILITY SHARE - FICA 920.9264 EMPLOYEE SICK PAY 920.9265 EMPLOYEE HOLIDAY PAY 920.9266 EMPLOYEE VACATION & PTO PAY 920.9267 UPMIC DISTRIBUTION 920.929 LONGEVITY PAY 920.9268 WELLHEAD PROTECTION 920.9291 CONSULTING FEES 920.9301 TELEPHONE 920.9302 ADVERTISING 920.9303 DUES & SUBSCRIPTIONS- FEES 920.9305 SCHOOLS & MEETINGS 920.9321 MTCE OF GENERAL PLANT & OFFICE HEATING Total for Administrative Expense: 2023 Annual 2022 Annual 2021 Annual Budget Budget Actual 43,000 46,371 36,296 - - (69) (6,651) (6,651) (3,325) 36,349 39,720 32,902 500 - 662 1,750 1,750 (393) - - 18,645 - - (44,525) 95 - (244) 125 100 26 2,470 1,850 (25,830) 2,500 2,500 2,326 81,620 71,200 69,886 Customer satisfaction survey 250 500 - 84,370 74,200 72,213 268,500 235,000 224,435 Admin Director - - 1,791 1,000 1,000 - 25,500 23,700 23,716 8,000 8,000 6,160 625 700 607 9,000 8,000 5,080 4,630 4,510 4,240 36,000 27,000 22,128 30,500 28,000 17,722 215,000 217,000 189,669 54,000 51,000 49,360 52,000 49,000 47,321 27,000 30,000 26,235 30,800 28,000 28,139 44,000 41,000 41,535 18,069 11,000 11,275 3,106 - - 10,000 20,000 3,790 Wellhead protection plan amendment 35,000 20,000 43,887 9,500 6,800 7,365 6,500 5,000 3,791 78,320 73,616 106,965 63,705 55,026 24,356 1,900 1,900 1,828 1,032,654 945,252 891,406 General Expense 920.9269CIPREBATES -RESIDENTIAL 10,500 4,500 5,279 920.927CIPREBATES -COMMERCIAL 500 500 - 920.9272 CIP- MARKETING 500 500 121 920.9273 CIP - LABOR 4,700 4,700 4,430 920.9281 ENVIRONMENTAL COMPLIANCE 2,200 2,200 952 920.9306 MISC GENERAL EXPENSE 250 250 805 Total for General Expense: 18,650 12,650 11,590 Total Expenses (before Operating Transfers) 3,408,080 3,233,895 3,209,798 Operating Transfer Utilities & Labor Donated 597.8261 WATER & LABOR DONATED TO CITY 1,500 1,500 1,258 Total Operating Transfer - Total for Total Operating Transfer: 1,500 1,500 1,259 Net Income Profit(Loss) 52,367 107,674 1,527,010 110 Elk River Municipal Utilities Business Plan/Budget 2023 Electric Department Capital Budget Capital Construction Projects Cost Description $ 250,000 Highway 169 redefine Reserves $ 100,000 Rebuild: Parish Ave $ 75,000 199th rebuild $ 100,000 Rebuild Sandpiper Estates $ 100,000 Waco Business Center Dr Recon $ 100,000 Cty Rd 44 Rebuild $ 100,000 Cty Rd 33 Subtotal $ 825,000 *Projects listed in order of priority Capital Construction Substations Cost Description $ 150,000 East Design $ 500,000 Otsego Transformer Replacement Reserves $ 30,000 Station 14-3 Relay Panel Replacement $ 6,000 Station 14-4 Recloser Controller Replacement $ 51,000 West Bank #1 Relay Panel Replacement, Recloser Controller and Tank Replacement $ 45,000 West Bank #2 Relay Panel Replacement and Recloser Tank Replacement Subtotal $ 782,000 Capital Construction Feeders Cost Description $ 300,000 New Feeder to tie Sub 14-4 to Otsego Sub $ 100,000 County Rd 35 Feeder to Waco $ 250,000 Rebuild Feeder 46 Substation to Hwy 10 Subtotal $ 650,000 Capital Construction System Cost Description $ 510,000 Transformers and Meters $ 2,500,000 AMI Bond $ 350,000 New Development Distribution Installation $ 50,000 Street Lighting $ 75,000 Ongoing OH Equip Replacement (Poles, Switches, Cut -Outs) $ 150,000 Ongoing LIRD Equip Replacement (Switches, J-Boxes, Fuse Pads) $ 50,000 Fault Indicators Replacements Subtotal $ 3,685,000 Capital Equipment Needs Cost Description $ 250,000 Replace Bucket Truck Vehicle #4 $ 130,000 Replace Vactron Vehicle #50 $ 20,000 Trailer $ 6,125 Shared Equipment Scrubber $ 65,000 Replace Truck Vehicle #20 $ 10,000 Ez Spot $ 161,800 Electric share of Administration $ 356,825 Electric Share of Technical Services $ 17,500 Tools at Field Services Building Subtotal $ 1,017,250 Capital Facilities & Misc Needs Cost Description $ 30,000 Vactron clean out west sub $ 300,000 County Rd 12 Interconnection Agreement - Connexus Reserves $ 924,190 Territory Acquisition - Loss of Revenue Pmt (2015 Contract - Area 1&2, 3&4, 5&6, 7&8) Reserves Subtotal $ 1,254,190 Total Capital $ 8,213,440 Electric Noteworthy Non -Recurring Expenses Cost Description $ 21,200 Computers, iPads, Software, Accessories $ 6,000 Paint Trailer $ 10,000 Paint Transformers/Switchgear $ 10,000 Tools $ 15,000 Station 14-3 Contractor Testing and Inspections $ 14,000 Electric share of Administration $ 18,170 Electric share of Technical Services Total $ 94,370 111 Elk River Municipal Utilities Business Plan/Budget 2023 Administration and Technical Services Departments Capital Budgets Administration Capital Needs Cost Description $ 10,000 Office Furniture $ 7,000 Hallway Display and Branding $ 7,500 Computer Monitor Arms $ 10,600 Server upgrades $ 10,000 Network Switch (City main core) $ 5,000 Network Switches/Misc (ERMU) $ 40,000 Security Camera System Replacement $ 25,000 Building Security $ 5,000 Voice Server Replacement $ 15,900 MDMS $ 10,000 Phone System $ 50,000 Vehicle #1 Subtotal $ 196,000 Administration Noteworthy Non -Recurring Expenses Cost Description $ 17,500 Computers, Wads, Software, Accessories, Scanners, Printers - Upgrades Subtotal $ 17,500 Total Administration $ 213,500 Technical Services Capital 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 $ 25,000 Repair Exhaust - Engine #3 $ 10,000 Rebuild - Engine #3 $ 63,500 Fiber Extension - 169 to Sub $ 15,000 Fiber Extension - Station 14 $ 61,000 Fiber Extension - Johnson Tower Due to AMI $ - Fiber Extension - Auburn Tower Due to AMI $ 9,500 Locator $ 130,000 Trucks Vehicle #2 & #32 $ 37,000 EV DC Fast Charger Subtotal $ 376,000 Technical Services Noteworthy Non -Recurring Expenses Cost Description $ 8,600 Computers, Wads, Software, Accessories - Upgrades $ 10,000 General Engine Inspections/Maint. Subtotal $ 18,600 Total Technical Services $ 394,600 Total Capital Items $ 572,000 Total Non-Recuring Expenses $ 36,100 112 Elk River Municipal Utilities Business Plan/Budget 2023 Water Department Capital Budget Water Capital Construction Needs Cost Description $ 15,000 Well #4 Rehab $ 20,000 Well #7 VFD $ 20,000 Flood Alarms - Well 2, 3, 5 and 7 $ 15,000 Chlorine Analyzers $ 100,000 Facility Repair $ 150,000 Meadowvale Booster Station $ 90,000 Freeport Tower Paint/Sandblast $ 15,000 Placeholder for undetermined projects $ 90,000 SCADA upgrades $ 55,000 Well #9 Fiber $ 1,198,000 AMI Reserves $ 1,250,000 Water Main Construction (Schoolview) Reserves Subtotal $ 3,018,000 Capital Equipment Needs Cost Description $ 875 Shared Equipment Scrubber $ 65,000 Trucks #3 $ 34,200 Water share of Administration $ 19,175 Water Share of Technical Services $ 2,500 Tools at Field Services Building Subtotal $ 120,875 Total Capital $ 3,139,750 Water Noteworthy Non -Recurring Expenses Cost Description $ 7,000 Computers, iPads $ 10,000 Meters/ERT $ 10,000 Tools $ 3,500 Water share of Administration $ 430 Water share of Technical Services Total $ 30,930 113 EI«tri< MMUA verhead Hot Line School MMUA Undeego,—d School MMUA ansformer School MMUA Substation Workshop 2staff 2staff 2staff 2 staff ff eadership Adva cad St mgnWorkshop Aoorent—hlo staff Istaff 3 staff ' off 0.odeoteam staff teem -Kansas Ciry, KS g School/Diesel Workshop 2staff ff Cgmbe'rinformxdon Con£(NLSC� staff n --mg IM UA TKO Conference staff van ry p on and Assistantattending portal ming/Chaicaw Workshop 4staff eryday Leadership Training 73 Identifled need in Survey oo Driving xhool istaff Ed - - Addid nal Tmmmg raven ry natant ertification Continuing Education 4 staff ertdication continuing Edocetion stiff TECO Unliceced El -colon Continuing Eduadon stiff W 60 - PublicA El--1 Skills Staff - - - 2024 W-A Certificate Pmgam stiff 2,350 - - E.,kflowTe1- Certdicetion Class staff - ProfessionalOpeatorend Devempment staff 750 JSO off - 1,710 dership i staff - jS onth program eALea ryday—d—hpTaining 64 Identifled need in Survey Additional Training Te<hni<al5ervi«a Workshop - - - eselWodrsAop 1staff - 850 EST 2 2,ODD- - workshop istaff 200 200 2o0 Workshops/EPS - - - Conference staff - - Sobsmdon School 2staff war Oueliry twining staff Inffared Cameo twining staff UMMA er ff ff Leadershiv I staffff 3,580 - - ff - 1,710 erydayLeadersFpTraining a Identifed need in Survey Additional Taining Administration ertdication continuing Edocetion nel Conference staff ertification Continuing Education ITatercertification Continuing Education staff staff r W.,k hop ff staff ff ntoalSommerM—Ing staff/5 comm UA egislet��e Roundwp staff/l wmm egKI.C. R—dwp 2staff/l wmm UA T&O Cnference Advanced Twining roar staff Istaff 1staff 2,000 Clerk's Conference MN ip.1 C1. k, I-Ift to ertifiation Twining Aeadeg Istaff - I staff TODD S,OEO SOO —pleb, 2023 staff - - MMUA rship Aademy Rodeop'n ea g o Ldership I 4,31D 4,310 4,3 10 - - nth prog staff ram staff2:421) Kansas a PA E&O Cnfrence onel Conference staff asadena, CAKS staff/0 wmm 3,050 3,050 em'b,rinformadon Conf(NLSC) APPAng (Mg etc) ff staff staff 2,500 25DD ng(Mg ,etc) nng/Conferene staff 3,500 - - staff - - Moved to Office end Fall Meeeing n1-ky Egoipment Show eryday eadeship raining ory egal& RegulatConference Ch ppewa Valley Tech-Elecaic Taining —Tin I, AdditionalTraining 42o- - - odd y.,(fly out mon fly beck thur( staff - SCO all1, - nclodes Strategic Planning , staff - - New Atto y 2staff - - Office ember Information Conf(NLSC) istaff Added additional staff for prepaation of AMI Cl 0 00 Identifed need in Survey g ff Clerk's Conference Istaff 800 - ns onference staff - - ommumcations Chamberttaaders0 Pmgam istaff Fin—nong (APA, NISC & MI,,)ng Ed, Mist PR, Excel, Accounting Mist eryday Leadership Taining TT 1aff 4,783 4,783 4,545 Identifled need in Survey Lers eadhip - - - MRA AmploymentiawUpdate 1 staff - conference staff - PA cybersecodty Sommh staff IT SCCPOnline Edocetion staffTTrlbibg NLSC/Misc IT Taining istaff Tai g Additional Training 52 fety Treiniire Safe DdverTaining ]staff Additional Training ngT Laborrt Education Total Tutal<hanCe — 131 114 ELK RIVER MUNCIPAL UTILITIES DUES & SUBSCRIPTIONS - FEES BUDGET FOR 2023 Budget Budget Actual Description 2023 2022 2021 MMUA Membership Dues 33,839 33,839 32,413 MMTG Dues 6,550 6,550 6,549 APPA Dues 17,338 17,630 17,629 APPA DEED Program Dues 3,600 3,600 3,526 Customer Service Survey 6,000 - - MMUA Monthly Safety Meetings 30,500 30,500 30,237 Rotary 300 300 - Drug and Alcohol Random Testing 1,500 1,500 894 Bond Administrative & Management Fees 6,400 5,400 8,222 US Bank, City (Bond Disclosure Fees), Moody's Quarterly MN Dept of Health Water Connection Fee 55,500 54,500 52,902 MRWA Annual Fee 300 300 300 AWWA Annual Fee Dues 2,120 2,120 2,065 MPCA Permit Fee - WTP 350 350 - MPCA Permit Fee - Engines 360 360 354 Homeland Security (Hazardous Chemical Fee) 700 700 700 SUSA Membership 125 125 125 Elk River Chamber Membership 620 620 590 Economic Development Association 350 350 - MN Deed, EDA of MN GASB Subscription 287 287 - ESRI Small Govt Enterprise agreement 27,300 27,000 26,969 Citizen Serve 3,800 - - New 2023 mPower Maintenance - 6,000 6,000 AMI - - Adobe Creative Cloud software 1,720 800 791 Includes stock image subscription Adobe Pro software 1,200 800 978 Additional for CS Dept SIEM Solution 2,380 2,380 - New 2022 - Billed from city Customer Service Chat Feature 4,000 - - New 2023 Munici-pals Membership 25 25 - Survey Monkey 390 390 384 AWWA Partnership Safe Water Treatment/Distribution 100 100 - accessiBe 490 490 Subscription added for new website HR professional memberships) 1,400 1,400 1,344 SHRM and MRA Miscellaneous 6,451 5,565 3,189 Detail below Bond Underwriter's Discount 20,000 - 104,988 AMI Bonding Bond Service Professional Fee 15,000 - 36,713 AMI Bonding Total 250,995 203,981 337,862 Budget Change 23% -32% Budget Change without Bonding Expenses 6% 7% Miscellaneous 6,451 5,565 3,189 Total APA- Northstar Chapter Membership Fee 50 50 50 Supervisors Legal Update Renewal 530 530 504 Class A Electrical License 130 130 128 Journey worker A Electrician License Fee 43 43 - Master A Electrician License Fee 73 - 73 Unlicensed Electrican Fee 24 19 24 CPA License Renewal 102 102 102 MN Society of CPA Membership 680 630 630 2 memberships Zoom 170 170 162 MCFOA Membership 92 90 92 2 memberships AWWA Membership Renewal 324 316 160 4 memberships MPCA Wastewater Certification Renewal 92 92 - 4 renewals Engineer License Renewal - 125 - Even year renewal IEEE Membership Renewal 241 241 - Notary Renewal Fee - - - Renews 1/2024 and 12/2027 - 5 years APA Membership Renewal 298 260 262 Misc Bonds/Permits 1,000 1,000 445 Water Operator License 92 92 101 4 renewals ISC2 Certification (IT) 125 125 125 RP3 Application Fee - 1,200 - Every 3 years BPMS Software - - - Sprinkler Inspection 350 350 - CPP Certification Renew - - 150 Every 5 years (renewed in 2021) Backflow Tester Certification Recert - - - 1st in 2024 Go Daddy 150 - 141 IT ProTV 240 - 40 Amazon Business Prime Membership 200 - - Marco Meraki Licenses 1,045 - - State Registration Backflow Prevention 400 - - 115 2023 CIP Operating Budget Required Spending and Savings Goals otal CIP Budget 2023 Total Spending Level 1.5% of GOR $ 580,109 Low Income Requirement .2% of Residential GOR $ 27,887 Energy Savings Goal (kWh) 4,957,493 Possible Distributed Renewable Generation Funds $ 28,969 Possible Research and Development Funds $ 57,939 Direct Labor $ 155,883 General & Administration $ 70,214 Advertising $ 30,039 Equipment $ - Contract (Includes $34,219 MN PUC Assessment) $ 34,219 Total $ 290,356 ERMU Rebates $ 289,7531 Total all Expenses and Rebates $ 580,109 I Total Estimated kWh Savings 5,285,602 otal Operating CIP Budget No Rebates Only Direct Costs otal Rebate Budget Direct Labor $ 155,883 Advertising $ 30,039 Equipment $ - Contract (Includes $34,219 MN PUC Assessment) $ 34,219 Total ERMU Operating Expenses $ 220,142 ERMU Self Funded 289,7531 otal Requested Budget Direct Labor $ 155,883 Advertising $ 30,039 Equipment $ - Contract (Includes $31,000 MN PUC Assessment) $ 34,219 ERMU Self Funded Rebates $ 289,753 Total Requested 2022 Budget* $ 509,894 *No General and Administrative Included 116 -Ith, m- �■ Municipal Utilities 2023 Schedule of Rates &Fees 117 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 be accessible to our service department at any time. Residential All Electric Service Rate: J Basic Monthly Electric Charge: J::�. �!'�°.., 5 .Q0. per month Summer Winter $0. 13734 / kWh / month $0.444& 12545/ 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 2 118 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 1 °, 24?4.... ,,R...2 0,22.1 A..R: , � ,4...,ki � , 2 . . Effective January 1, 22424 ..,2..2.. Page 2 of 2 119 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 must be accessible to our service department at any time. Residential Electric Service Rate: Basic Monthly Electric Charge: $J:..:,v 51.. 5 O.Q. per month Summer Winter $0.41 1.3...✓...3 4. / kWh / month $0.4 1941254 / 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 2 120 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 1 °, 24'"4.,,R...2.2.. A..R: , � ,4...,ki � , 2 . . Effective January 1, 22424 ..,2..2.. Page 2 of 2 121 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.14 2....2...................202:.2- 2023.. Effective January 1,.2..0..2...2................................... Page 1 of 1 122 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: $ 0.2.5.3- .,.Q..C1 per month Summer Winter $0.42.6.:2.1::...0/kWh /month $O..p:.6..2....�::.�::.�::.: �::.../ 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 2 123 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 98% at all times. If the power factor, as measured by the electric department, is lower than 98%, the monthly demand charge may be multiplied by the ratio 98% 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 14 )- 2......1 ::..R.....�":��.�".2 �..�:. �.�,r.�.�..i.�,r.d....i. a..�:.�.e.,.�y...... � �P....2..�:�..2...2.. 2023 Effective January 1,.2..0..2...2................................... Page 2 of 2 124 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: $ 0.2.5.3- .,.Q..C1 per month Summer Winter . ��,1 ../ kWh / month 0.1' 6 �-.�::.�::.�.:.... / kWh / month O.. p .2..6.:2..................... 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 2 125 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 98% at all times. If the power factor, as measured by the electric department, is lower than 98%, the monthly demand charge may be multiplied by the ratio 98% 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 maybe 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 14 )- 2-4-1:.:�..P.....2.��.�":.2 �..�:. �.�,r.�.�..i.�,r.d....i. a..�:.�.e.,.�y...... � �P....2..�:�..2...2.. 2023 Effective January 1,.2..0..2...2................................... Page 2 of 2 126 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 must be accessible to our service department at any time. Demand Service Rate: Basic Monthly Electric Charge: $ '! ":: e e� 00. per month. Summer Winter "J Demand Charge: ! : :: ": $11.75 in kW /month Energy Charge: ...Q..'.7 35.. $0." .. 0.0..'Z' 35. 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 2 127 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 98%. If the power factor, as measured by ERMU's electric department, is lower than 98%, the monthly demand charge may be multiplied by the ratio 98% 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 maybe 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 14 )- 2......1 ::..R.....�":��.�".2 �..�:. �.�,r.�.�..i.�,r.d....i. a..�:.�.e.,.�y...... � �P....2..�:�..2...2.. 2023 Effective January 1,.2..0..2...2................................ Page 2 of 2 128 4=:" Elk Riv 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 must be accessible to our service department at any time. Demand Service Rate: Basic Monthly Electric Charge: $ '! ":: e 7.L.00. per month. Summer Winter Demand Charge: $ J 6 �5 $11.75 in kW / month ...................................... Energy Charge: ...��7(').�."�. $0." ..::�0.... 07035....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 2 129 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 98%. If the power factor, as measured by ERMU's electric department, is lower than 98%, the monthly demand charge may be multiplied by the ratio 98% 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 maybe 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 14 )- 2-4-1:.:�..P.....2.��.�":.2 �..�:. �.�,r.�.�..i.�,r.d....i. a..�:.�.e.,.�y...... � �P....2..�:�..2...2.. 2023 Effective January 1,.2..0..2...2................................ Page 2 of 2 130 4=:" Elk Riv 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: y g J J ": �'1C1 per month. Basic Month) Electric Charge: .p. ............... Summer Winter Demand Charge: $ J C5 $11.25 in kW / month ............................ �'155 $0." 63...�,.5;,5: in kWh /month Energy Charge: 0:�66� ............................ 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 2 131 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 98%. If the power factor, as measured by ERMU's electric department, is lower than 98%, the monthly demand charge may be multiplied by the ratio 98% 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 14 )- 2-4-1:.:�..P.....2.��.�":.2 �..�:. �.�,r.�.�..i.�,r.d....i. a..�:.�.e.,.�y...... � �P....2..�:�..2...2.. 2023 Effective January 1,.2..0..2...2................................ Page 2 of 2 132 4=:" Elk Riv 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 3 133 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. $10.90 per kW -month for all capacity quantities during the months of June through September. B. $3.60 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 Locationa) Marginal Price at the applicable MISO Node. B. All applicable MISO Ancillary Services Charges. C. MISO Multi -Value Project Charges. D. A charge of $0.002 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 3 134 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 98%. If the power factor, as measured by ERMU's electric department, is lower than 98%, the monthly demand charge may be multiplied by the ratio 98% 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 1..4P....2 ......1......P..... �..�:. �.�,r.�.�..i.�,r.d....i. a..�:.�.e.,.�y...... � �P....2..�:�..2...2.. 2023.. Effective January 1,.2....2...2................................... Page 3 of 3 135 Elk River 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 $0.002. 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 $0.002] 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 14 )- 2-4-1..3..........�".0.22... 2023 Effective January 1,.2..0..2...2................................... Page 1 of 1 136 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 be accessible to our service department at any time. Off Peak Demand Service Rate: Basic Monthly Electric Charge: $75.50 per month. Demand Charge: On -Peak $ J 6 75 $11.75 in kW / month Off -Peak $6.30 $6.30 in kW / month Energy Charge: 0��$00��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 2 137 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 98%. If the power factor, as measured by ERMU's electric department, is lower than 98%, the monthly demand charge may be multiplied by the ratio 98% 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 .1-4P.....2..0..2..1...1:'..1.....�":��.�".2 ..:.. r....i. r.0....i.a..�:.� e..0 . y...... 4,P2, Effective January 1, .2.0.22 2023 Page 2 of 2 138 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 must be accessible to our service department at any time. Ground Source Heat Pump Service Rate: Basic Monthly Electric Charge: $ 0.25 30.50 per month Energy Charge: $0.026„ f.1 / 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 2 139 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 14 )- 2-4-1:.:�..P.....2.��.�":.2' �..�:. �.�,r.�.�..i.�,r.d....i. a..�:.�.e.,.�y...... � �P....2..�:�..2...2.. 2023 Effective January 1,.2....2...2................................ Page 2 of 2 140 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. 36...�:.:...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 14 )- 2.4-1...�........�".0.22... �..�:. �.�,r.�.�..i.�,r.d....i. a..�:.�.e.,.�y...... � �P....2..�:�..2...2.. 2023 Effective January 1,.2..0..2...2................................... Page 1 of 1 141 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 L�0F, 334 /kWh for the five monthly billing periods of June — October, summer rate o............................................... ....J.3 7.. , and the winter rate of 0. -1.�".5 43/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. ............................. 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. Page 1 of 2 142 Electric Vehicle Charging Rates 7. Final inspection prior to meter activation to ensure only qualified loads are being supplied through the electric vehicle charging equipment. 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 $0.4:!51 20. per kWh at all times. 4. Electric energy consumed at the DC Fast Charging station will be at a rate of $0.22.009 2 5., 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. Page 2 of 2 143 Electric Vehicle Charging Rates Adopted December.-4 1- .....3.P.....2.0.22... Effective January 1, 2.02.) 2 0 2 3.. Page 2 of 2 144 Elk River Municipal Utilities MORATORIUM EFFECTIVE FERRUARY 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:(.620„ 0651.. per kWh. 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 3 145 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 „05„01:. 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 3 146 Energy Management Program Rates ERMU shall provide: 1. All electric energy consumed by the ETS water heater at $0.( 4,oL .............................. _�;1!; 01:. 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. -4 1..1 ................... ".�:�. ":. ": �..�:. �.�,r.�.�.�.�,r.d....�. a..�:.�.e.,.�y...... � �P....2..�:�..2...2.. 2023.. Effective January 1,.2..0..2...2................................... Page 3 of 3 147 Ells 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) $26.00 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 maybe 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 Street/Security Light Service Rate 4. Exceptions by management approval only. Adopted December 14, 2021 Effective January 1, 2022 Page 2 of 2 149 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 83.. $3.50 $4.00 Commercial 3 /1 $.'........................................ .e $1.94 $3.50 $4.00 Commercial 1 �..�.�..�" ..........:...'...........:.: 1.9„ 3.50 4.00 Commercial 1 % $1�� .�„ ::.4:4: $1.94 „ $3.50 $4.00 Commercial 1 %2 $ !': 4 : e" $1.94 „ $3.50 $4.00 Commercial $.:..!: �'1 �.��3 �... $3.50 $4.00 Commercial 3 r !':.3�� $�,q,..p.w,p..w,�...................................... $1.94 $3.50 $4.00 Commercial $ 52.��.4 3 $3.50 $4.00 Commercial $84,42P91..78 $3.50 $4.00 Commercial $.1.......p.13 $1.9. $3.50 $4.00 .......................................... Commercial Irrigation Seasonally or ... 20:!:;,, $3.50 $4.00 Permanently Installed Federal, state, and local taxes may apply. Page 1 of 2 150 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 .1-4P.....2..0..2......1:'..1.....�":��.�".2 2023 Effective January 1,...2�;:..2................................... Page 2 of 2 151 /� Elk River Municipal Utilities 2023 Utilities Fee Schedule ELECTRIC New Residential Electric Connection - Developer - Lot With municipal Water service $975.00 New Residential Electric Connection - Developer - Lot without municipal water service $1,075.00 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 $350.00 Pole Attachment Fee (per pole) $15.00 Manual Meter Reading Fee (per month) $10.00 Meter Installation Fee (per individually metered apartment unit) WATER Water Access Charge = Water Connection Charge + Water Availability Charge $22.00 $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 $6,000.00 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 l000 gallons) $4.00 Hydrant Wrench $40.00 Manual Meter Reading Fee (per month) $10.00 Private Hydrant Maintenance Program Monthly Fee ADMINISTRATIVE Administrative Fee for Continued Submission of Checks After No -Check Notice Given $5.00 $20.00 Billable Cost of Materials Markup 15% Billable Labor Markup 55% Billable Vehicle / Equipment (per hour) $45.00 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 $30.00 Penalty Amount 10% Photocopies (per page) $0.25 Red Tag Handling Fee $20.00 Adopted by the Utilities Commission on October 11, 2022 under authority per Minnesota Statute 412.361 152