4.4. ERMUSR 11-17-2009~i
Elk River
Municipal Utilities
13069 Orono Parkway • P.O. Box 430
Elk River, MN 55330-0430
November 10, 2009
To: Elk River Municipal Utilities Commission
John Dietz
Jerry Gumphrey
Daryl Thompson
From: Troy Adams
Subject: Review and Consider After-Hours Electric Reconnects
Phone: 763.441.2020
Fax: 763.441.8099
At the October 2009 commission meeting, the commission voted to eliminate the after-hours
electric reconnect stipend. Also, after-hours reconnects were to be handled on a case by case
basis and not offered as a service. Going forward, when an after-hours reconnect would occur,
the employee called out would be compensated per the existing call-out policy. The commission
also directed staff to survey other utilities to compare how after-hours reconnects are handled.
Of some 20 municipal utilities surveyed, only three do not provide after-hours electric
reconnects. These three are Spring Valley, Waseca, and Fairmont. Fairmont just had a vote in
October to eliminate the after-hour reconnects. Of the others providing the service, there were
numerous reasons given why they provide the after-hours reconnect service. One reason is for
the rare chance the wrong meter were to be disconnected and the incurred liability the utility
would have for not correcting that issue until the next business day. Another reason is utility
liability during inclement weather.
Based on the feedback from the utilities surveyed, only Chaska was paying a stipend to the
employees for an after-hours reconnect. The others pay call-out time per their company policies.
The service charge to the customer for an after-hour reconnect varied significantly. The charges
ranged from $35 to $150. Owatonna had the low charge of $35 and knew it needed to be raised.
There was a common theme that these utilities didn't want to loose money by offering the
service of after-hours reconnects. Elk River Municipal Utilities charges the customer $100 for
an after-hours reconnect. The average cost to ERMU is higher than. this. There is currently one
foreperson, four lead linepersons, and five linepersons in the after-hours on-call rotation. The
average wage of the ma~cimum wage for these 10 employees in the on-call rotation is $34.56/hr.
This results in an average after-hours reconnect utility cost of approximately $160 for a typical
two hour minimum call-out, the employer related taxes, and a truck. Many times the on-call
employee will reconnect multiple customers during one call-out. So, this cost would actually
track lower per reconnect over time.
Memo to Commission
After-Hours Electric Reconnects
Page 2
Also to note, Buffalo doesn't collect any money during after-hours reconnects. They are still
providing the service, but the customer must make the payment at the office prior to the close of
the business day. This eliminates many potential issues, but doesn't address all potential
situations for liability.
Because this service is provided by the majority of utilities, it is important for competitive
business reasons to provide the same service. Also, it is not fair to the rate payers to subsidize
this service to those customers who do not use it. Staff recommends the Utilities provide after-
hours electric reconnects and increase the service charge to $150 per after-hours reconnect.