4.02 EMRUSR 11-12-2024��i
Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO:
FROM:
ERMU Commission
Mark Hanson — General Manager
MEETING DATE:
AGENDA ITEM NUMBER:
November 12, 2024
4.02
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
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 long-term planning rather than
short-term comparisons.
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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
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