4.4 ERMU 12-12-2023Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO:
FROM:
ERMU Commission
Mark Hanson — General Manager
MEETING DATE:
AGENDA ITEM NUMBER:
December 12, 2023
4.4
SUBJECT:
Competitive Rates Analysis
ACTION REQUESTED:
Approve the Competitive Rates Analysis
BACKGROUND:
The Commission adopted the Competitive Rates Policy in December 2022. Per this policy, the
general manager will provide an annual competitive rate analysis report to the Commission
prior to rate setting for the following budget year.
DISCUSSION:
The report includes the following information:
1. Electric
a. Report the blended $/kWh effective electric rate data (total revenue
collected/total kWh sold) as available through the U.S. Department of Energy,
Energy Information Administration, Form EIA-861. The report shall include
ten-year trend data graphing ERMU electric rates compared to neighboring
competitor electric utilities. Recognizing that the data release lags one year,
the intent of the report shall be to provide graphical trend data for long-term
planning rather than short term comparisons. The report shall be provided to
the Commission annually prior to rate setting for the following budget year.
b. Report customer class rate analysis comparing ERMU electric rates to
neighboring competitor electric utilities. The report shall include ten-year
trend data graphing ERMU electric rates compared to neighboring
competitor electric utilities. The intent of this is to show, from a customer
perspective, how rate competitiveness would be perceived currently. The
report shall include all rate classes or other unique customer types within
rate classes.
2. Water
a. Report tiered water rate comparisons, as available locally sourced. The report
shall include data graphing ERMU water rates compared to neighboring
water utilities. The intent of the report shall be to provide trend data for
Page Iof2
59
long-term planning rather than short-term comparisons.
b. Report customer class rate analysis comparing ERMU water rates to
neighboring communities, as available through regional Advanced
Engineering and Environmental Services survey reports. The report shall
include ten-year trend data graphing ERMU water rates compared to
neighboring competitor water utilities. The intent of this is to show, from a
customer perspective, how rate competitiveness would be perceived
currently. The report shall include all rate classes.
The annual rate analysis report is attached for approval.
ATTACHMENTS:
• ERMU Policy — G.5b —Competitive Rates Policy
• Electric and Water Report with Graphs
Page 2of2