4.02a EMRUSR 11-12-2024%/
Elk River
Municipal Utilities
COMMISSION POLICY
Section:
Governance
Category:
Results Policies
Policy Reference:
Policy Title:
G.5b
Competitive Rates
PURPOSE:
Competitive rates play a critical role in customer satisfaction, economic development
opportunities, and business retention. The organization's Mission includes the statement that the
services provided are "cost effective." And the organization's Fundamentals and Values both
specify "competitiveness." These defining organizational position policies reflect the expectations
of the customers, the consumer -owners. With this policy, the Commission recognizes the
importance of remaining competitive through strategic short-term and long-term planning,
budgeting, and rate design.
Consistent will all Results Policies, the Commission shall establish clear expectations for
producing the right results for the right people in the right way. With this policy the Commission
affirms their commitment to the Organization Fundamentals Policies prioritizing financial and
organization health by establishing reporting requirements regarding the competitiveness of rates.
POLICY:
To provide the Commission with the information needed, in a timely manner, for evaluation of rate
competitiveness, the General Manager annually provides a rate competitive analysis report to the
Commission prior to rate setting for the following budget year. The report shall include 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.
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ERMU Commission Policy — G.5b - Competitive Rates
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 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 AE2S 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.
POLICY HISTORY:
Adopted December 13, 2022
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