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2.4 ERMUSR 05-13-2025______________________________________________________________________________ Page 1 of 1 UTILITIES COMMISSION MEETING TO: ERMU Commission FROM: Melissa Karpinski – Finance Manager MEETING DATE: May 13, 2025 AGENDA ITEM NUMBER: 2.4 SUBJECT: 2025 First Quarter Utilities Performance Metrics Scorecard Statistics ACTION REQUESTED: None BACKGROUND: Following the Commission’s adoption of the Performance Metrics program in December 2012 and the latest revision in 2024, we will be tracking the progress for 2025, to be awarded in 2026. This is a company performance-based program designed to incentivize employee commitment towards the company’s success. Divided into categories representing core values of the company and again into sub-categories that are quantifiable, this program is designed to track goals that require companywide support from the employees to continually achieve. When the employees work together as a team to achieve these goals, the company recognizes a corresponding increase in value to our customers. DISCUSSION: At close of the fiscal 2025 year, and completion of the audit, the final score card will be evaluated and presented to the Commission for awarding the related distribution in 2026. We will be tracking the progress of the company and the related score card quarterly throughout 2025. The first quarter scorecard is attached, with some notes for the first quarter results. FINANCIAL IMPACT: None, until awarded the following year. ATTACHMENTS: • Performance Metrics and Incentive Compensation Policy Scorecard 2025 - First Quarter 55 Elk River Municipal Utilities G.4g1a - Performance Metrics and Incentive Compensation Policy Scorecard - 2025 Category Percent Sub-Category Sub- Percent Goal Score Awarded Multiplier Percent Water Quality Standards 5 Meet Requirements met requirement Lead and Copper quality 5 90th percentile met requirement Bacteria Detection 5 0 positive samples 0 on target CAIDI 5 <120 Min 48.913 on target SAIDI 5 <60 Min 5.173 on target SAIFI 5 <0.4 0.106 on target Line Loss 5 <5%0.07%on target Water Loss 5 <12%6.30%on target Employee Turnover 10 < 7.5%0%on target Participation in Recommended and Mandatory Trainings 10 95%90%off target Margins/Net Profit 15 > Budget on target Inventory Accuracy 5 >98%99.99%on target Clean Energy Choice Program Participation 5 +30 net +5 off target Conservation Improvement Program 5 >95%7.36%off target Strategic Plan 10 Dashboard Progress (Average)10 >50%66.67%on target 1.6% Adopted December 12, 2012 Revised October 11, 2016 Revised December 17, 2019 Revised December 14, 2021 Revised December 13, 2022 Revised December 12, 2023 Revised December 10, 2024 Communications/ Customer Service 10 Total Multiplier: Safety, Reliability and Quality of Utility Services 40 Workforce Development 20 Financial Goals 20 56