4.2. ERMUSR 06-09-2009Elk River .~
Municipal Utilities
13069 Orono Parkway • P.O. Box 430
Elk River, MN 55330-0430
June 4, 2009
To: Elk River Municipal Utilities commission
John Dietz
Jerry Gumphrey
Daryl Thompson
From: Theresa Slominski
Re: Dollar Savings and PCAs
Phone: 763.441.2020
Fax: 763.441.8099
At the May 12, 2009 commission meeting, under other business as an additional agenda
item, Commissioner Dietz directed that a calculation of employee related cost savings be
prepared. The calculation was directed to include cost savings from staff restructuring,
non replacement of employees, and the delay/denial of budgeted wage actions.
Commissioner Dietz stated that he would like to see the employee related cost savings
used to directly offset any Power Cost Adjustments (PCAs) rather than charging a PCA
to customers.
The compilation of the totals for staff includes the salary, as well as the related employer
and benefits costs, is on the following page for your review. The total of the savings is
approximately $115,500. This compilation does not take into account any other area of
increased expense, such as legal fees.
A recap of 2009 year-to-date PCA accumulation is included, as well as the 2008 PCAs.
In 2008 we incurred $968,891 in PCAs and passed along $733,870. There have been no
PCAs charged to customers in 2009. As was noted in the May meeting, the 2009 budget
was conservative with the ramp up of consumption for the second data center (customer
provided projections were more liberal) specifically with the intention of being able to
offset any PCAs. Also, 2009 budget Power Costs increased $2,139,012 and rates were
only increased $1,692,899, effectively absorbing 21% of the increase through budget
constraints.
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