6.1a ERMUSR 06-13-2023Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO:
FROM:
ERMU Commission
Mark Hanson — General Manager
MEETING DATE:
AGENDA ITEM NUMBER:
June 13, 2023
6.1a
SUBJECT:
Staff Update
ACTION REQUESTED:
None
DISCUSSION:
• Following a successful kickoff meeting last week with our meter supplier, Core & Main, we
have scheduled a similar kickoff meeting with TKDA, our construction services consultant,
on Monday, June 12. TKDA has been hired to assist us with developing bid documents,
selecting contractors, and providing administrative support (contract management and
inspection). We expect to have separate installation contractors for electric and water
meters. Our goal is to select both contractors by September 2023. A full communications
plan regarding our related public education efforts is forthcoming.
• A friendly reminder that Minnesota Municipal Utilities Association's (MMUA) Summer
Conference is August 21-23 at the Duluth Entertainment Convention Center. Please get
your registration needs to Kathy as soon as possible.
Per MMUA: the Summer Conference is designed to offer must -have information to address
the most pressing challenges facing utilities and opportunities to network with other
hometown utility leaders from across the state. Our 2023 conference theme is Resiliency.
Sessions will focus on the flexibility and recovery characteristics of utility infrastructure and
operations as well as on techniques that will help utilities avoid or minimize disruptions
during extraordinary events. You will be able to choose from four unique conference tracks
(governance, leadership, electric, and water/wastewater) to maximize your learning.
• Last week, in my mid -month update, I described the added process our customer service
staff will be using to promote customer participation in the Clean Energy Choice renewable
energy program. Staff are asking new customers if they'd like to participate in the program
during the account set up process. I'm happy to report that since its implementation two
weeks ago, the new process has yielded seven (7) new Clean Energy Choice enrollments.
Kudos to our customer service staff for their great work!
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• Minnesota Municipal Power Agency (MMPA) has shared the following with us regarding
Xcel Energy's rate case:
The Minnesota Public Utilities Commission (PUC) decided Xcel's rate case on Thursday
afternoon. It appears that final rates for 2023 will be somewhat lower than 2023 interim
rates.
This is expected to result in rate refunds for Xcel customers. Final rates and the amount of
refund will be known after Xcel decides whether to seek reconsideration of the PUC
decision and Xcel has calculated final rates. We estimate this could take between one and
three months.
MMPA's wholesale rate is expected to remain lower than Xcel's A15 rate. However, in late
summer or early autumn Xcel is expected to refund part of the interim rate for 2022 and a
little over half of 2023. The refund will make Xcel's rate appear to be competitive with
MMPA in the month of refund.
Attached are two articles regarding the outcome of the rate case, one from the Star Tribune
and one from Minnesota Public Radio.
ATTACHMENTS:
• Star Tribune — Xcel will reassess investments in Minnesota after regulators' rate hike
decision
• MPR — State regulators approve 9 percent electric rate increase for Xcel Energy
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