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12-18-2019 HUCCPHUTCHINSON UTILITIES COMMISSION AGENDA REGULAR MEETING December 18t", 2019 3:00 p.m. 1. CONFLICT OF INTEREST 2. APPROVE CONSENT AGENDA a. Approve Minutes b. Ratify Payment of Bills 3. APPROVE FINANCIAL STATEMENTS 4. OPEN FORUM 5. COMMUNICATION a. City Administrator b. Divisions C. Human Resources d. Legal e. General Manager 6. POLICIES a. Review Policies No Policies to Review b. Approve Changes 7. UNFINISHED BUSINESS a. None 8. NEW BUSINESS a. Approve 2020 Budgets & CIP b. Approve Moving 2020 Pay Grid & New Pay Performance Guide C. Consideration of Approval of Pay Equity Report d. Approve Supplemental Agreement to the Transmission Facilities Assignment Agreement e. Approve Req #8226 — 2020 Chevrolet Pickup f. Discussion of possible City Charter Amendment to change the eligibility requirements to serve as a Hutchinson Utilities Commissioner g. Conduct the Performance Review of Hutchinson Utilities Commission General Manager Pursuant to Minnesota Statute 13D.05 Subd. 3(a) 9. ADJOURN MINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, November 27, 2019 Call to order — 3:00 p.m. President Don Martinez called the meeting to order. Members present: President Don Martinez; Vice President Matt Cheney; Secretary Robert Wendorff; Commissioner Monty Morrow; Commissioner Anthony Hanson; GM Jeremy Carter; Marc Sebora 1. Conflict of Interest 2. Approve Consent Agenda a. Approve Minutes b. Ratify Payment of Bills Motion by Commissioner Hanson, second by Commissioner Morrow to approve the Consent Agenda. Motion carried unanimously. 3. Approve Financial Statements Mr. Martig presented the Financial Statements. Salaries have now been allocated from System Control to Natural Gas and Electric departments. Motion by Commissioner Cheney, second by Commissioner Wendorff to approve the financial statements. Motion carried unanimously. 4. Open Forum 5. Communication a. City Administrator —Matthew Jaunich — i. Finalizing budgets b. Divisions i. Dan Lang, Engineering Services Manager — Absent ii. Dave Hunstad, Electric Transmission/Distribution Manager — 1 . Working on temporary transformer. 2. Wrapping up projects. iii. Randy Blake, Production Manager — 1 . New engines are officially HUC's. 2. Working on CAT punch list. The engines need to reach 1000 operating hours before the oil consumption guaranty tests can be performed by CAT. 3. Working on year-end projects. Commissioner Hanson inquired about the engines and the overall process. Mr. Blake stated that CAT has a lot of work on the management side to do. Overall, the engines are a good product; downside is that parts are more expensive. 1 iv. John Webster, Natural Gas Division Manager- Absent v. Jared Martig, Financial Manager- 1. Starting year end in all departments c. Legal — Marc Sebora — Nothing to report d. Human Resources - Brenda Ewing — i. Every three years, HUC is required to submit a pay equity report. HUC has received the notice from the State of Minnesota Department of Management and Budget that the report for 2019 is due in January 2020. Prior to submittal, the report must be approved by the Commission. The pay equity reporting process is to ensure that male dominated and female dominated job classes are compensated equitably. Consideration of the report will be on the December meeting agenda. e. General Manager — Jeremy Carter i. Wrapping up year end. ii. Government relations start up next month. iii. Dave and I working on solar project for EDA is- ; m rmm- , a. Review Policies i. CIP Rebate Level of Authority ii. Delegation of Authority Policy iii. Financial Reserve Policy iv. Investment Policy v. Purchasing Policy/Credit Cards/Fixed Assets vi. Service Beyond City Limits of Hutchinson vii. Surplus Property Policy No changes recommended at this time. b. Approve Changes i. Payments of HUC Payables GM Carter noted the revised date. Commissioner Hanson inquired about the Investment Policy and the statutes. GM Carter noted that this was reviewed with Mr. Martig and the last time any statutory changes were made to the Investment Policy was 2014. At the strategic planning meeting, discussions were held about the Financial Reserve Policy and this was left as a review. There was not a strong sense to change anything at that time. The Commission Board can review and changes can be made in the future. After discussion, it was decided to have GM Carter do analysis and to bring this topic back up in 2020. 2 A motion by Commissioner Morrow, second by Commissioner Cheney to Approve changes to Payments of HUC Payables. Motion carried unanimously. 7. Unfinished Business 8. New Business a. Approve Non -Waiver of Tort Liability Limits for General Liability Insurance GM Carter presented the requirement by League of Minnesota Cities Insurance Trust. Staff is recommending to not waive the tort liability limits. Completion of the Wavier form is done annually. In the past HUC has not waived the municipal tort limit. After discussion, a motion by Commissioner Hanson, second by Commissioner Wendorff to Approve Non -Waiver of Tort Liability Limits for General Liability Insurance. Motion carried unanimously. b. Approve Customer Uncollectable Write -Offs Mr. Martig presented the Customer Uncollectable Write -Offs. HUC is requesting to approve write-offs of $9,603.01. This amount is similar to last year. Mr. Morrow recognized the Staff on a job well done. A motion by Commissioner Wendorff, second by Commissioner Cheney to Approve Customer Uncollectable Write -Offs. Motion carried unanimously. c. Approve Selling of Surplus Vehicles Mr. Hunstad presented Selling of Surplus Vehicles. As part of HUC's Fleet Management Program, it is recommended to sell the listed vehicles from the 2019 Fleet Schedule. After discussion, a motion by Commissioner Cheney, second by Commissioner Hanson to Approve Selling of Surplus Vehicles. Motion carried unanimously. d. Declare Employee Recognition Dinner on Dec 13, 2019 as an Open Meeting A motion by Commissioner Hanson, second by Commissioner Morrow to Declare Employee Recognition Dinner on Dec 13, 2019 as an Open Meeting. Motion carried unanimously. e. Discuss Date for Performance Review of Hutchinson Utilities General Manager 3 Ms. Ewing discussed the Date for Performance Review of Hutchinson Utilities General Manager. Per General Manager's contract with Utilities, an annual Performance Review is to be conducted. Generally, this has occurred in December at the scheduled Commission Meeting or a Special Meeting. It is up to the Commission on when the Performance Review should be held. GM Carter would have the opportunity to decide if it would be an open or closed session. When the date is decided, review forms will be sent to all the Commissioners. After Commissioners have completed and returned review forms, all results will be compiled for discussion at the review. After discussion, GM Carter and Commissioners agreed to have the review at the December 18, 2019 Commission Meeting. f. Discussion of Re -appointment of Anthony Hanson to the Hutchinson Utilities Commission After discussion, Mr. Hanson is willing to stay on and be re -appointed. All Commissioners agreed with re -appointment of Commissioner Hanson. Mr. Sebora will relay the recommendation to City Council for reappointment. g. 2020 Budget Presentation GM Carter presented HUC's 2020 Preliminary Budget. GM Carter noted revised information was sent out today. GM Carter highlighted for Combined Divisions, revenues are at $41.2M with expenses at $39.8M with a Net profit of $1.4M, which was an increase in net profit of $318K over last year. Electric Division showed a significant improvement over last year predominantly coming from the expense side. Gas Division remained stable. Electric Division, Retail Customer Sales is at $25.6M down by .5M from 2019, which is based on only projecting $1.5M in PCA, where last year it was $2M. Based on Cost of Service study, HUC is collecting more on residential sales and less on industrial sales, which is the glide path HUC has chosen. Overall, sales between classes are consistent. Sales for Resales, projecting $55K increase over 2019 budget. Capacity sales are increasing to $830K; majority is due to Rice Lake Utility Contract coming on in 2020. Another portion of increase is that HUC is moving from selling 40 megawatts of capacity in 2019 to 45 megawatts in 2020. In the year, SMMPA is coming off at the end of May 2020 for 40 megawatts and AEP contract comes on in June 2020 for 45 megawatts. Increased Market sales in 2020 due to not having the Transalta capacity. Staff has tried to shop around but the markets are too soft to compete in any type of favorable contract. HUC will continue to run the unit for market sales when market prices are favorable, 12 and anticipate generating $.5M in market sales depending on weather and market prices. On the flip side with increases coming from Market and Capacity Sales, HUC will lose the Transalta tolling fee of $436K. Overall line stays flat. Discussions were held about the Transalta contract. GM Carter reviewed the Pictorial Graphs; these graphs show the overall comparison as to how the revenue is derived. Industrial class is continuing to see reductions; which will be the case going forward. The Consumption History graph shows a snapshot of each customer class loads, which is fairly flat. GM Carter spoke on the Electric Division Expense Budget Highlights. Continuing to work on Health Insurance. Waiting for a couple of carriers to provide quotes yet, as of now anticipating an increase of 3%. PILOT was increased by $187K. Will see a significant decrease in transmission charges predominately from the GRE side. Showing a modest increase of $50K for MISO transmission. On the Operating side, adding $25K for Wartsila troubleshooting software, $15K for RTU McLeod Cap Bank (which HUC will be reimbursed), $10K for Citizen Survey and $74K for General Liability/Equipment Breakdown Insurance. Overall Electric Division is better for 2020. After discussion of the Electric Division preliminary budget, GM Carter reviewed an overview of the Natural Gas Division. Retail Customer Sales has a decrease of $71 K, which is fairly consistent year to year. Other revenues do not show a lot of fluctuation, Bond Premiums, Late Charges/Fees and Brownton & HCP Operation/Maintenance Agreement stayed the same from 2019. GM concluded by reviewing the pictorial graphs and expense budget highlights of the Natural Gas Division. On the Operating side, looking at adding an additional $75K for a Welder/Service Person II, $12.5K for RTU's Flow Boss and $49K for Geohazard modeling that needs to get completed. GM Carter looked to the Commission for questions, concerns or comments. GM Carter noted that a 5-year forecast would be completed as well. There were no concerns from the Commissioners. 9. Adjourn There being no further business, a motion by Commissioner Cheney, second by Commissioner Wendorff to adjourn the meeting at 4:06p.m. Motion carried unanimously. ATTEST: Don Martinez, President 5 Robert Wendorff, Secretary 12/12/2019 08:36 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 11/21/2019 - 12/12/2019 Payee Description Account Pag Dept 1/21 Amount Fund: 1 ELECTRIC 11/26/2019 GEN 483(E) MISO Deferred Energy Cost - Miso 174-000- 00 22,574.09 Deferred Energy Cost - Miso 174-000- 00 817.92 HECK GEN 483(E) TOTAL 23,392.01 12/02/2019 GEN 494(E)* CITIZENS BANK Office Supplies 401-921- 08 146.00 12/03/2019 GEN 484(E) MISO Deferred Energy Cost - Miso 174-000- 00 17,609.43 Deferred Energy Cost - Miso 174-000- 00 831.88 HECK GEN 484(E) TOTAL 18,441.31 12/04/2019 GEN 70345*4 ACE HARDWARE Generators 107-344- 00 35.46 Transformers (Distribution Onl 107-368- 00 21.56 Sales Tax Receivable - New 186-000- 00 1.48 Sales Tax Receivable - Replace 186-000- 00 2.43 Sales Tax Receivable - Replace 186-000- 00 0.96 Sales Tax Receivable - Replace 186-000- 00 1.19 Supplies 401-550- 01 58.33 Generator 41 Material 402-554- 01 17.38 Accessory Plant - Materials 402-554- 01 13.99 Maintenance Other - Materials 402-554- 01 48.08 HECK GEN 70345 TOTAL 200.86 12/04/2019 GEN 70346 ALMETEK INDUSTRIES INC TAG, 2, H5002 154-000- 00 30.00 TAG, 2, H5002 154-000- 00 3.74 TAG, 3, H5003 154-000- 00 30.00 TAG, 3, H5003 154-000- 00 3.74 TAG, 7, H5007 154-000- 00 30.00 TAG, 7, H5007 154-000- 00 3.74 TAG, 6, H5006 154-000- 00 30.00 TAG, 6, H5006 154-000- 00 3.73 HECK GEN 70346 TOTAL 134.95 12/04/2019 GEN 70347 ALTEC INDUSTRIES INC Altec AT41M-4 Aerial 107-392- 00 96,932.41 12/12/2019 08:36 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 11/21/2019 - 12/12/2019 Description 12/04/2019 GEN 70348* ANTHONY BOOKER 12/04/2019 GEN 70349* BECCA FLECK 12/04/2019 GEN 70350 BETH LUEPKE 12/04/2019 GEN 70351* BETHANY FISCHER 12/04/2019 GEN 70352* BORDER STATES ELECTRIC SUPPLY 12/04/2019 GEN 70353* BRAD OLSON 12/04/2019 GEN 70354* BRANDON BERWALD OR KELLEY ADAME 12/04/2019 GEN 70356 CALEB HARRIS OR ERIC HOFFMAN 12/04/2019 GEN 70357 CE POWER Account Dept Fund: 1 ELECTRIC DEP REFUND/APPLIED 235-000- 00 DEP REFUND/APPLIED 235-000- 00 OVERPAYMENTS 142-000- 00 DEP REFUND/APPLIED 235-000- 00 Transformers (Distribution Onl 107-368- 00 Transformers (Distribution Onl 107-368- 00 Transformers (Distribution Onl 107-368- 00 POLE, ROUND TAPERED 154-000- 00 CONNECTOR, PEDESTAL, 500 MCM 6 PLACE, 154-000- 00 ELL, 1/0, 15KV 1STR-1/OSOL, .70-.91, 154-000- 00 KIT, SPLICE, QS4-15SP-QCI-2-4/0-BCA 154-000- 00 PARKING STAND, FEED THRU, 200A 154-000- 00 KIT, SPLICE, (LONG), 1/0 15KV TO 42 SIR 154-000- 00 PEDESTAL, SECONDARY, NORDIC PRMC-150-MG 154-000- 00 BASEMENT, 1 PH JCT BOX CGS-18 X 30 X 18 154-000- 00 SPLIT BOLT 42 KS-22 Cu BURNDY 154-000- 00 CONDUIT, SCH 40, 2" X 10, PVC 154-000- 00 SPLICE, 44 TO 44 AL/CU YSU 2W-2W 154-000- 00 Sales Tax Receivable - New 186-000- 00 Sales Tax Receivable - New 186-000- 00 Sales Tax Receivable - New 186-000- 00 Sales Tax Receivable - New 186-000- 00 Sales Tax Receivable - New 186-000- 00 HECK GEN 70352 TOTAL Cip - Residential 401-916- 07 DEP REFUND/APPLIED 235-000- 00 OVERPAYMENTS 142-000- 00 Transformers (Distribution Onl 107-368- 00 Pag 2/21 Amount 39.00 156.00 210.98 130.00 2,748.78 26.24 307.62 2,186.30 253.20 516.20 4,174.04 834.12 169.60 452.56 227.56 70.50 30.60 4.00 462.64 0.27 188.98 1.80 150.00 286.00 132.59 5,626.00 12/12/2019 08:36 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 11/21/2019 - 12/12/2019 Description 12/04/2019 GEN 70358 CE POWER 12/04/2019 GEN 7035914 CINTAS CORPORATION 4470 12/04/2019 GEN 70360* CITY OF HUTCHINSON 12/04/2019 GEN 70361 COLONIAL SUPPLEMENTAL INS CO 12/04/2019 GEN 70362* DAITIN PICHON 12/04/2019 GEN 70363* DAITIN PICHON 12/04/2019 GEN 70364* DAITIN PICHON 12/04/2019 GEN 70365 ELVIS ROSA 12/04/2019 GEN 70366 FASTENAL COMPANY 12/04/2019 GEN 70367* FIRST CHOICE FOOD & BEVERAGE 12/04/2019 GEN 70368 FREMONT INDUSTRIES INC 12/04/2019 GEN 70369 GDM SEEDS INC 12/04/2019 GEN 70370 GDM SEEDS INC Fund: 1 ELECTRIC Plant 2 transformer fault Uniforms & Laundry Uniforms & Laundry UNIFORMS & LAUNDRY Uniforms & Laundry HECK GEN 70359 TOTAL IT ADMIN AND SUPPORT 750 COLONIAL INSURANCE DEP REFUND/APPLIED DEP REFUND/APPLIED DEP REFUND/APPLIED OVERPAYMENTS Maintenance Other - Materials BREAKROOM/RECOGNITION BANQUET COPPER INHIBITOR, F-9105CCI COPPER INHIBITOR, F-9105CCI OXY4505 OXY4505 TOWER INHIBITOR, F-9173 TOWER INHIBITOR, F-9173 HECK GEN 70368 TOTAL OVERPAYMENTS OVERPAYMENTS Pag 3/21 Account Dept Amount 107-368- 00 54,150.00 401-550- 01 447.90 401-550- 01 482.49 401-588- 02 286.43 401-588- 02 369.42 401-921- 08 8,033.85 242-000- 00 113.76 235-000- 00 52.00 235-000- 00 65.00 235-000- 00 65.00 142-000- 00 31.03 402-554- 01 7.43 401-926- 08 85.50 154-000- 00 2,595.07 154-000- 00 22.32 154-000- 00 1,019.92 154-000- 00 8.73 154-000- 00 3,950.76 154-000- 00 33.98 7,630.78 142-000- 00 428.11 142-000- 00 598.14 12/12/2019 08:36 PM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES User: JMartig CHECK DATE FROM 11/21/2019 - 12/12/2019 DE: Hutchinson Utili Check Date Bank Check # Payee Description Fund: 1 ELECTRIC 12/04/2019 GEN 70371* GERALD CONNELL OR JANE MARIE GET REFUND/APPLIED 12/04/2019 GEN 70372*4 GOPHER STATE ONE -CALL INC Line - Materials 12/04/2019 GEN 70373 GREAT RIVER ENERGY TRANSMISSION EXPENSE 12/04/2019 GEN 70375* GUARDIAN DENTAL INSURANCE-80o ELEC DENTAL INSURANCE -COBRA HECK GEN 70375 TOTAL 12/04/2019 GEN 70377 HANNAH LAIDLAW OVERPAYMENTS 12/04/2019 GEN 70378*4 HILLYARD/HUTCHINSON Supplies Supplies Grounds - Materials HECK GEN 70378 TOTAL 12/04/2019 GEN 70379 HUNTER ONDRACEK OR SAMMY CHELIN OVERPAYMENTS 12/04/2019 GEN 70380* HUTCHFIELD SERVICES INC Grounds - Outside Services 12/04/2019 GEN 70382* JANEY OBERG GET REFUND/APPLIED 12/04/2019 GEN 70383* JEFF JANKE OR DEBORAH JANKE GET REFUND/APPLIED 12/04/2019 GEN 70384* JENNIFER DRAGT GET REFUND/APPLIED 12/04/2019 GEN 70385* JENNIFER DRAGT GET REFUND/APPLIED 12/04/2019 GEN 70386* JOSE FIGUEROA OR DEBRAH GEARHART GET REFUND/APPLIED 12/04/2019 GEN 70387* JOSHUA SCHRODEN GET REFUND/APPLIED Pag 4/21 Account Dept Amount 235-000- 00 97.50 401-581- 02 54.00 401-565- 03 141,286.56 242-000- 00 3,825.49 242-000- 00 318.27 142-000- 00 243.91 401-550- 01 95.11 401-550- 01 32.29 401-935- 08 27.59 154.99 142-000- 00 30.56 401-935- 08 1,112.73 235-000- 00 136.50 235-000- 00 162.50 235-000- 00 130.00 235-000- 00 45.50 235-000- 00 35.75 235-000- 00 188.50 12/12/2019 08:36 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee 12/04/2019 GEN 70388* 12/04/2019 GEN 70390 12/04/2019 GEN 70391* 12/04/2019 GEN 70393 12/04/2019 GEN 70394* 12/04/2019 GEN 70395* 12/04/2019 GEN 70396* 12/04/2019 GEN 70397* 12/04/2019 GEN 70398* CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 11/21/2019 - 12/12/2019 Description JUDITH READ KRANZ LAWN & POWER LARISSA CURTISS LOCATORS & SUPPLIES INC LUKE KAMRATH MARCO TECHNOLOGIES, LLC MARIE FLOR ARAGON MARTIG, JARED MEDICA 12/04/2019 GEN 70399* MIDWEST ENEGRY ASSOCIATION 12/04/2019 GEN 70400* MN NCPERS 12/04/2019 GEN 70401 NELSON TECHNOLOGIES INC Pag 5/21 Account Dept Amount Fund: 1 ELECTRIC DEP REFUND/APPLIED 235-000- 00 178.75 Power Equipment - Materials 402-598- 02 128.88 DEP REFUND/APPLIED 235-000- 00 139.75 NASCO, RAIN GEAR, HIVIS, 1503 JFY, 401-550- 01 129.00 DEP REFUND/APPLIED 235-000- 00 143.00 Office Supplies 401-921- 08 323.24 Office Supplies 401-921- 08 188.26 HECK GEN 70395 TOTAL 511.50 DEP REFUND/APPLIED 235-000- 00 52.00 TRAINING - EXPENSE 401-930- 08 511.57 TRAINING - EXPENSE 401-930- 08 714.24 HECK GEN 70397 TOTAL 1,225.81 HEALTH INSURANCE 85% ELEC 242-000- 00 55,512.65 HEALTH INSURANCE -COBRA 242-000- 00 894.57 HECK GEN 70398 TOTAL 56,407.22 DUES/MEMBERSHIP EXPENSE 401-930- 08 885.12 LIFE INSURANCE-PERA LIFE 242-000- 00 40.80 VALVE, GAS BLOW OFF, W/SOLENOID, 154-000- 00 590. 62 Sales Tax Receivable - Replace 186-000- 00 40.61 HECK GEN 70401 TOTAL 631.23 12/12/2019 08:36 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 11/21/2019 - 12/12/2019 Description 12/04/2019 GEN 70402 NERC 12/04/2019 GEN 70403* NICHOLAS SCHULTZ 12/04/2019 GEN 70404 NOAH JARVIS 12/04/2019 GEN 70406* NUVERA 12/04/2019 GEN 70407*4 OXYGEN SERVICE COMPANY INC 12/04/2019 GEN 70408 PATRICK ZIMMER 12/04/2019 GEN 70409 QUADE ELECTRIC 12/04/2019 GEN 70410* RELIANCE STANDARD LIFE -LIFE 12/04/2019 GEN 70411* ROBERT ROBBEN OR CAROLL ROBBEN 12/04/2019 GEN 70412* ROBERT TORDSEN OR KAREN TORDSE 12/04/2019 GEN 70414 SCHWEITZER ENGINEERING LABS 12/04/2019 GEN 70415* SHRED RIGHT 12/04/2019 GEN 70416* STANDARD PRINTING & MAILING Account Dept Fund: 1 ELECTRIC N PURCHASED POWER 401-555- 02 DEP REFUND/APPLIED 235-000- 00 OVERPAYMENTS 142-000- 00 TELEPHONE 401-921- 08 Supplies 401-550- 01 Supplies 401-550- 01 MATERIALS -NITROGEN 402-574- 03 HECK GEN 70407 TOTAL OVERPAYMENTS 142-000- 00 Generators 107-344- 00 Transformers (Distribution Onl 107-368- 00 Sales Tax Receivable - New 186-000- 00 Sales Tax Receivable - Replace 186-000- 00 HECK GEN 70409 TOTAL LTD INSURANCE-80o ELEC 242-000- 00 LIFE INSURANCE-80o ELEC 242-000- 00 HECK GEN 70410 TOTAL DEP REFUND/APPLIED 235-000- 00 DEP REFUND/APPLIED 235-000- 00 SEL-587 402-592- 02 OFFICE SUPPLIES -SHREDDING SERVICES 401-921- 08 Cip - Residential 401-916- 07 Pag 6/21 Amount 3,689.16 201.50 29.68 1,869.88 41.65 85.35 26.25 186.95 214.25 14.72 12.85 428.77 1,422.16 808.49 2,230.65 91.00 149.50 2,111.85 12.48 54.22 12/12/2019 08:36 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee 12/04/2019 GEN 70417* 12/04/2019 GEN 70418* 12/04/2019 GEN 70420*4 CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 11/21/2019 - 12/12/2019 Description SURVALENT TECHNOLOGY, INC TERRY MCDONALD TOTALFUNDS 12/04/2019 GEN 70421*4 TOYOTA LIFT OF MINNESOTA 12/04/2019 GEN 70422 12/04/2019 GEN 70423* 12/04/2019 GEN 70424* 12/04/2019 GEN 70425 12/04/2019 GEN 70426* 12/04/2019 GEN 70427 12/04/2019 GEN 70428* 12/04/2019 GEN 70429 TWO-WAY COMMUNICATIONS INC UIS/SOURCECORP UNITED PARCEL SERVICE VENKATESH GOPALAN VERIZON WIRELESS VIKING SIGNS VIRGINIA FOX WELLS FARGO HOME MTG Account Dept Fund: 1 ELECTRIC SCADA MASTER (ELEC DIV & GAS DIV) 401-921- 08 Cip - Residential 401-916- 07 COLLECTION - MATERIALSI/2 OF 55/45 401-903- 06 POSTAGE 1/2 75/25 401-921- 08 HECK GEN 70420 TOTAL OUTSIDE SERVICES 402-554- 01 OUTSIDE SERVICES 402-554- 01 OUTSIDE SERVICES 402-554- 01 Power Equipment - Materials 402-598- 02 Power Equipment - Materials 402-598- 02 Power Equipment - Materials 402-598- 02 HECK GEN 70421 TOTAL Maintenance Other - Materials 402-554- 01 COLLECTION - MATERIALS 401-903- 06 COLLECTION - MATERIALS 401-903- 06 HECK GEN 70423 TOTAL MAIL SERVICES - UPS, FEDEX 401-921- 08 OVERPAYMENTS 142-000- 00 TELEPHONE 401-921- 08 Vehicles - Material 402-598- 02 GET REFUND/APPLIED 235-000- 00 OVERPAYMENTS 142-000- 00 Pag 7/21 Amount 15,133.87 400.00 1,100.00 13.33 40.42 13.33 13.33 40.42 10.58 434.73 136.28 42.48 1,168.03 140.00 123.50 81.98 12/12/2019 08:36 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 11/21/2019 - 12/12/2019 Payee Description Account Pag Dept 8/21 Amount Fund: 1 ELECTRIC 12/09/2019 GEN 490(E)* TASC Prepaid HRA 174-000- 00 1,100.00 12/10/2019 GEN 485(E) MISO Deferred Energy Cost - Miso 174-000- 00 27,761.39 Deferred Energy Cost - Miso 174-000- 00 820.58 HECK GEN 485(E) TOTAL 28,581.97 12/12/2019 GEN 70432 ANDREW GRIMM OVERPAYMENTS 142-000- 00 26.IS 12/12/2019 GEN 70433 ANDREW ROBERTS OR TAYLOR WHEELING OVERPAYMENTS 142-000- 00 17.58 12/12/2019 GEN 70434* ANDY NISSEN Cip - Residential 401-916- 07 400.00 12/12/2019 GEN 70435* BORDER STATES ELECTRIC SUPPLY Transformers (Distribution Onl 107-368- 00 305.42 SPLICE, 1/0 TO 1/0 AL/CU CS78 BURNDY 154-000- 00 9.88 SPLICE, 4/0 AL/CU YSD28R28R 154-000- 00 48.08 TAPE, VINYL MASTIC ROLL, 4" x 10 x 154-000- 00 95.01 TAPE, SUPER 33+ PROFESSIONAL GRADE 154-000- 00 85.70 KIT, SPLICE, QS4-15SP-QCI-2-4/0-BCA 154-000- 00 642.16 CONDUCTOR, 350 MCM 600V URD TRIPLEX 154-000- 00 5,164.00 CONDUCTOR, 41/0 15 KV SOL At, TRXLP, 154-000- 00 5,543.30 FIXTURE, COBRA HEAD, 250W HIS 115 25S 154-000- 00 148.11 Sales Tax Receivable - New 186-000- 00 3.73 Sales Tax Receivable - New 186-000- 00 399.91 Sales Tax Receivable - New 186-000- 00 383.46 Sales Tax Receivable - New 186-000- 00 21.00 HECK GEN 70435 TOTAL 12,849.76 12/12/2019 GEN 70437* CARD SERVICES BREAKROOM/RECOGNITION BANQUET 401-926- 08 250.41 12/12/2019 GEN 70438 CARLY'S SHOE STORE BOOTS-C ROSENTHAL 401-588- 02 212.99 12/12/2019 GEN 704394 CENTRAL HYDRAULICS Sales Tax Receivable - Replace 186-000- 00 29.96 Accessory Plant - Materials 402-554- 01 435.72 HECK GEN 70439 TOTAL 465.68 12/12/2019 08:36 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 11/21/2019 - 12/12/2019 Description 12/12/2019 GEN 70441*4 CINTAS CORPORATION 4470 12/12/2019 GEN 70442*4 CITY OF HUTCHINSON 12/12/2019 GEN 70443 FERGUSON ENTERPRISES 4525 Pag 9/21 Account Dept Amount Fund: 1 ELECTRIC Uniforms & Laundry 401-550- 01 447.90 UNIFORMS & LAUNDRY 401-588- 02 359.12 HECK GEN 70441 TOTAL 807.02 VEHICLE/EQUIPMENT FUEL -POWER 401-550- 01 172.00 VEHICLES/EQUIPMENT FUEL-ELEC 401-588- 02 1,070.46 IT ADMIN AND SUPPORT 750 401-921- 08 7, 498.68 VEHICLES/EQUIPMENT FUEL-ADMIN 55/45 401-935- 08 95.72 Vehicles - Material 401-935- 08 69.83 HECK GEN 70442 TOTAL 8,906.69 1" black pipe -part 4GBPTCA53G 107-344- 00 215.08 1" black pipe -part 4GBPTCA53G 107-344- 00 29.11 1" 90 deg.elbow-part# B9G 107-344- 00 45.36 1" 90 deg.elbow-part# B9G 107-344- 00 6.14 1"black tee - part #BTG 107-344- 00 11.84 1"black tee - part #BTG 107-344- 00 1.60 1" black union - part # ELF150UG 107-344- 00 100.88 1" black union - part # ELF150UG 107-344- 00 13.65 1"black coupling -part #BCG 107-344- 00 17.49 1"black coupling -part #BCG 107-344- 00 2.37 1 1/2"X 1" BUSHING -part #IBBJG 107-344- 00 8.77 1 1/2"X 1" BUSHING -part #IBBJG 107-344- 00 1.19 1" ballvalve - part # MBA475BG 107-344- 00 105.55 1" ballvalve - part # MBA475BG 107-344- 00 14.29 2" butt weld tee -part # GWTK 107-344- 00 23.98 2" butt weld tee -part # GWTK 107-344- 00 3.25 HECK GEN 70443 TOTAL 600.55 12/12/2019 GEN 70444 FREMONT INDUSTRIES INC BIO-DISPERSANT, BIODISP2 154-000- 00 2, 492.82 12/12/2019 GEN 70446*4 HANSEN GRAVEL INC MATERIALS 401-588- 02 165.36 12/12/2019 GEN 70447 HOFFMAN FILTER SERVICE PAD, OIL ABSORBANT, 16" X 18", IN WPHL, 154-000- 00 276.54 12/12/2019 08:36 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 11/21/2019 - 12/12/2019 Description 12/12/2019 GEN 70448* HORACE STRANG 12/12/2019 GEN 70450 HUNSTAD, DAVID 12/12/2019 GEN 70452*4 HUTCHINSON LEADER 12/12/2019 GEN 70453 HUTCHINSON WHOLESALE SUPPLY CO 12/12/2019 GEN 70454* JIM DEFOE 12/12/2019 GEN 70455* JIM HELGET 12/12/2019 GEN 70456* JLR GARAGE DOOR SERVICE INC 12/12/2019 GEN 70457 JODI ASH 12/12/2019 GEN 70458 JON LAMERS 12/12/2019 GEN 70459 KATHLEEN ROBE 12/12/2019 GEN 70460 KRANZ LAWN & POWER 12/12/2019 GEN 70461 L & P SUPPLY COMPANY 12/12/2019 GEN 70462* LOIS KRANTZ 12/12/2019 GEN 704634 MATHESON TRI-GAS INC 12/12/2019 GEN 70464 12/12/2019 GEN 704654 MATT RUGLOSKI MCC ENERGY SOLUTIONS, LLC 12/12/2019 GEN 70466 MELISSA MEGARD Account Dept Pag 10/21 Amount Fund: 1 ELECTRIC Cip - Residential 401-916- 07 150.00 Training - Expense 401-580- 02 69.60 Cip - Marketing 401-916- 07 52.50 Accessory Plant - Materials 402-554- 01 33.49 Cip - Residential 401-916- 07 150.00 Cip - Residential 401-916- 07 400.00 Grounds - Materials 401-935- 08 201.60 Cip - Residential 401-916- 07 25.00 OVERPAYMENTS 142-000- 00 15.32 OVERPAYMENTS 142-000- 00 30.97 Maintenance Other - Materials 402-554- 01 103.66 Maintenance Other - Materials 402-554- 01 1.71 Cip - Residential 401-916- 07 150.00 Sales Tax Receivable - Replace 186-000- 00 5.80 Generator 41 Material 402-554- 01 84.36 HECK GEN 70463 TOTAL 90.16 OVERPAYMENTS 142-000- 00 49.23 I AM MANAGEMENT FEES 401-555- 02 3,900.00 IAM USAGE FEES 401-556- 03 3,050.00 CHECK GEN 70465 TOTAL 6,950.00 Cip - Residential 401-916- 07 25.00 12/12/2019 08:36 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 11/21/2019 - 12/12/2019 Payee Description Account Pag Dept 11/21 Amount Fund: 1 ELECTRIC 12/12/2019 GEN 70468 NORTHERN STATES SUPPLY INC DIE, PIPE 1/2"-3/4" NIT UNIVERSAL, 154-000- 00 131.37 12/12/2019 GEN 7047114 O'REILLY AUTOMOTIVE INC Generators 107-344- 00 300.48 Sales Tax Receivable - Replace 186-000- 00 22.16 Sales Tax Receivable - Replace 186-000- 00 2.16 Generator 41 Material 402-554- 01 29.31 Vehicles - Material 402-598- 02 14.32 HECK GEN 70471 TOTAL 368.43 12/12/2019 GEN 70473* ONE CALL NOW COLLECTION - MATERIALS 401-903- 06 398.45 12/12/2019 GEN 70474*4 OXYGEN SERVICE COMPANY INC GRINDING WHEEL, 4 1/2" X .045" X 7/8" 154-000- 00 144.69 DISC, FLAP, 4 1/2" X 7/8", 60 GRIT, 154-000- 00 77.38 WIRE BUFFING WHEEL. 413131 154-000- 00 132.37 Supplies 401-550- 01 18.57 MATERIALS -NITROGEN 402-574- 03 28.01 HECK GEN 70474 TOTAL 401.02 12/12/2019 GEN 70475* PREMIUM WATERS INC OFFICE SUPPLIES -BOTTLED WATER 401-921- 08 20. 90 12/12/2019 GEN 70476*4 PRO AUTO & TRANSMISSION REPAIR Vehicles - Material 402-554- 01 28.23 VEHICLES - MATERIAL-ADMIN 55/45 401-935- 08 21.16 HECK GEN 70476 TOTAL 49.39 12/12/2019 GEN 70477 PSI ENGINEERING LLC Roper gear pump - quote # SQ19-18986 107-344- 00 3,113.37 12/12/2019 GEN 70479*4 RUNNING'S SUPPLY INC Supplies 401-550- 01 14.99 Vehicles - Material 402-554- 01 2.79 Vehicles - Material 402-598- 02 33.71 HECK GEN 70479 TOTAL 51.49 12/12/2019 GEN 70480 RYAN ELLENSON Cip - Residential 401-916- 07 25.00 12/12/2019 08:36 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 11/21/2019 - 12/12/2019 Description 12/12/2019 GEN 70481* RYAN LARSON 12/12/2019 GEN 70482 SHARELLE LEAF 12/12/2019 GEN 70484 T & R ELECTRIC SUPPLY CO INC 12/12/2019 GEN 70485* TERI VANDESTEEG 12/12/2019 GEN 70486* TOYOTA LIFT OF MINNESOTA 12/12/2019 GEN 70487* TRANS 12/12/2019 GEN 704884 TWO-WAY COMMUNICATIONS INC 12/12/2019 GEN 70489* VIDEOTRONIX INC 12/12/2019 GEN 70490 WARTSILA OF NORTH AMERICA, INC Fund: 1 ELECTRIC Cip - Residential Cip - Residential Transformer Oil Testing Labor Cip - Residential Vehicles - Material LEASE/SERVICE AGREEMENTS Sales Tax Receivable - Replace Generator 41 Material HECK GEN 70488 TOTAL GROUNDS - OUTSIDE SERVICES SCREW, LINER TOP SCREW, LINER TOP LAMP, LINER TOP O-RING, LINER O-RING, LINER WATER JUMPER LINER, CYLINDER KIT, THRUST BEARING CAP, MAIN BEARING LINER, WATER JACKET COVER, CRANKCASE WITH RELIEF OVER, CRANKCASE SCREW KIT, BIG END BEARING ROD, CONNECTING UPPER BUSHING, GUDGEON PIN BEARING PISTON HEAD, CYLINDER WITH VALVES Account Dept Pag 12/21 Amount 401-916- 07 150.00 401-916- 07 62.00 401-588- 02 2,169.56 401-916- 07 25.00 401-935- 08 72.09 401-921- 08 910.31 186-000- 00 2.07 402-554- 01 30.00 32.07 401-935- 08 235.12 154-000- 00 11.20 154-000- 00 13.88 154-000- 00 118.76 154-000- 00 107.56 154-000- 00 22.42 154-000- 00 13,020.22 154-000- 00 3,921.76 154-000- 00 1,871.24 154-000- 00 1,299.78 154-000- 00 1,131.71 154-000- 00 605.07 154-000- 00 33.60 154-000- 00 17,569.44 154-000- 00 15,171.58 154-000- 00 1,176.52 154-000- 00 28,348.66 154-000- 00 36,007.05 12/12/2019 08:36 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 11/21/2019 - 12/12/2019 Description 12/12/2019 GEN 70491*4 WEST CENTRAL SANITATION INC 12/12/2019 GEN 70492 ZACHARY PLETZER Fund: 1 ELECTRIC ROD, PUSH RING, SECURING PIN, GUDGEON PIPE, PROTECTING FOR PUSH ROD RING, ANTI -POLISHING. LUBRICATION, CONTACT, LINER TO BLOCK Sales Tax Receivable - Replace Sales Tax Receivable - Replace HECK GEN 70490 TOTAL GENERATOR 41 WATER & SEWER Waste Disposal UTILITY EXPENSES - WATER/WASTE 55/45 HECK GEN 70491 TOTAL OVERPAYMENTS Total for fund 1 ELECTRIC Account Dept Pag 13/21 Amount 154-000- 00 1,644.88 154-000- 00 43.92 154-000- 00 2,980.54 154-000- 00 136.88 154-000- 00 741.78 154-000- 00 250.31 186-000- 00 9,290.93 186-000- 00 18.46 135,538.15 401-547- 01 88.61 401-550- 01 393.04 401-930- 08 78.69 560.34 142-000- 00 119.51 682,866.92 12/12/2019 08:36 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 11/21/2019 - 12/12/2019 Payee Description Account Pag Dept 14/21 Amount Fund: 2 GAS 12/02/2019 GEN 494(E)* CITIZENS BANK Office Supplies 401-921- 08 146.00 12/04/2019 GEN 70345*4 ACE HARDWARE Materials 401-874- 04 7.03 12/04/2019 GEN 70348* ANTHONY BOOKER DEP REFUND/APPLIED 235-000- 00 21.00 12/04/2019 GEN 70349* BECCA FLECK DEP REFUND/APPLIED 235-000- 00 84.00 12/04/2019 GEN 70351* BETHANY FISCHER DEP REFUND/APPLIED 235-000- 00 70.00 12/04/2019 GEN 70352* BORDER STATES ELECTRIC SUPPLY Thredolet, Standard 107-381- 00 200.80 Thredolet, Standard 107-381- 00 0.01 Nipple, BY, TEE, 1" NIT x 2 1/2" 107-381- 00 97.64 Nipple, BY, TEE, 1" NIT x 2 1/2" 107-381- 00 0.01 WIRE, 410 SOLID BARE CU, WITH 45 MILS 154-000- 00 525.00 WIRE, 410 SOLID BARE CU, WITH 45 MILS 154-000- 00 37.86 COUPLING, BM, CLASS 150, 1/2", FEMALE 154-000- 00 6.93 NIPPLE, 1/2"X 3", BM, STD, SMLS, TEE 154-000- 00 5.27 WIRE, 410 SOLID BARE CU, WITH 45 MILS 154-000- 00 562.50 WIRE, 410 SOLID BARE CU, WITH 45 MILS 154-000- 00 0.36 HECK GEN 70352 TOTAL 1,436.38 12/04/2019 GEN 70353* BRAD OLSON Cip - Residential 401-916- 07 400.00 12/04/2019 GEN 70354* BRANDON BERWALD OR KELLEY ADAMS DEP REFUND/APPLIED 235-000- 00 154.00 12/04/2019 GEN 70355 BRIAN CHRISTENSEN Cip - Residential 401-916- 07 400.00 12/04/2019 GEN 70359*4 CINTAS CORPORATION 4470 UNIFORMS & LAUNDRY 401-880- 04 184.88 UNIFORMS & LAUNDRY 401-880- 04 184.88 HECK GEN 70359 TOTAL 369.76 12/04/2019 GEN 70360* CITY OF HUTCHINSON IT ADMIN AND SUPPORT 250 401-921- 08 2,677.95 12/12/2019 08:36 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee 12/04/2019 GEN 70362* 12/04/2019 GEN 70363* 12/04/2019 GEN 70364* 12/04/2019 GEN 70367* 12/04/2019 GEN 70371* 12/04/2019 GEN 70372*4 12/04/2019 GEN 70374 12/04/2019 GEN 70375* 12/04/2019 GEN 70376 CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 11/21/2019 - 12/12/2019 Description DAITIN PICHON DAITIN PICHON DAITIN PICHON FIRST CHOICE FOOD & BEVERAGE GERALD CONNELL OR JANE MARIE GOPHER STATE ONE -CALL INC GROEBNER & ASSOCIATES INC GUARDIAN GUS WURDELL 12/04/2019 GEN 70378*4 HILLYARD/HUTCHINSON 12/04/2019 GEN 70380* HUTCHFIELD SERVICES INC 12/04/2019 GEN 70381 INTERSTATE BATTERY SYSTEMS OF MLPS Account Dept Fund: 2 GAS DEP REFUND/APPLIED 235-000- 00 DEP REFUND/APPLIED 235-000- 00 DEP REFUND/APPLIED 235-000- 00 BREAKROOM/RECOGNITION BANQUET 401-926- 08 DEP REFUND/APPLIED 235-000- 00 MATERIALS 401-874- 04 Line - Outside Services 401-856- 05 HECK GEN 70372 TOTAL GAS, CALIBRATION, 2.5% BY VOL.(50oLEL) 154-000- 00 DENTAL INSURANCE-20o GAS 242-000- 00 CIP - RESIDENTIAL-452 401-916- 07 CIP - RESIDENTIAL-456 401-916- 07 CIP - RESIDENTIAL-432 401-916- 07 CIP - RESIDENTIAL-424 401-916- 07 CIP - RESIDENTIAL-440 401-916- 07 HECK GEN 70376 TOTAL Grounds - Materials 401-935- 08 Grounds - Outside Services 401-935- 08 Materials 12/04/2019 GEN 70382* JANEY OBERG DEP REFUND/APPLIED 235-000- 00 Pag 15/21 Amount 28.00 35.00 35.00 28.50 52.50 54.00 250.58 956.37 625.00 625.00 625.00 625.00 22.56 910.41 ** VOIDED ** 73.50 12/12/2019 08:36 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 11/21/2019 - 12/12/2019 Payee Description Account Pag Dept 16/21 Amount Fund: 2 GAS 12/04/2019 GEN 70383* JEFF JANKE OR DEBORAH JANKE DEP REFUND/APPLIED 235-000- 00 87.50 12/04/2019 GEN 70384* JENNIFER BRACT DEP REFUND/APPLIED 235-000- 00 70.00 12/04/2019 GEN 70385* JENNIFER BRACT DEP REFUND/APPLIED 235-000- 00 24.50 12/04/2019 GEN 70386* JOSE FIGUEROA OR DEBBAH GEARHART DEP REFUND/APPLIED 235-000- 00 19.25 12/04/2019 GEN 70387* JOSHUA SCHRODEN DEP REFUND/APPLIED 235-000- 00 101.50 12/04/2019 GEN 70388* JUDITH READ DEP REFUND/APPLIED 235-000- 00 96.25 12/04/2019 GEN 70389 KATHY BLAKE Cip - Residential 401-916- 07 25.00 12/04/2019 GEN 70391* LARISSA CURTISS DEP REFUND/APPLIED 235-000- 00 75.25 12/04/2019 GEN 70392 LEAGUE OF MN CITIES INS TRUST WORKERS COMPENSATION 401-870- 04 289. 40 12/04/2019 GEN 70394* LUKE KAMRATH DEP REFUND/APPLIED 235-000- 00 77.00 12/04/2019 GEN 70395* MARCO TECHNOLOGIES, LLC OFFICE SUPPLIES 401-921- 08 107.74 12/04/2019 GEN 70396* MARIE FLOR ARAGON DEP REFUND/APPLIED 235-000- 00 28.00 12/04/2019 GEN 70397* MARTIG, JARED TRAINING - EXPENSE 401-930- 08 418.55 TRAINING - EXPENSE 401-930- 08 584.37 HECK GEN 70397 TOTAL 1,002.92 12/04/2019 GEN 70398* MEDICA HEALTH INSURANCE 15% GAS 242-000- 00 9,796.35 12/04/2019 GEN 70399* MIDWEST ENEGRY ASSOCIATION DUES/MEMBERSHIP EXPENSE 401-930- 08 724.18 12/12/2019 08:36 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 11/21/2019 - 12/12/2019 Payee Description Account Pag Dept 17/21 Amount Fund: 2 GAS 12/04/2019 GEN 70400* MN NCPERS LIFE INSURANCE-PERA LIFE 242-000- 00 23.20 12/04/2019 GEN 70403* NICHOLAS SCHULTZ DEP REFUND/APPLIED 235-000- 00 108.50 12/04/2019 GEN 70405 NORTHERN BORDER PIPELINE CO LINE - OUTSIDE SERVICES -INTERCONNECT 401-856- 05 2,000.00 12/04/2019 GEN 70406* NUVEBA TELEPHONE 401-921- 08 623.29 12/04/2019 GEN 70407*4 OXYGEN SERVICE COMPANY INC Materials 401-874- 04 41.65 Materials 401-874- 04 85.35 HECK GEN 70407 TOTAL 127.00 12/04/2019 GEN 70410* RELIANCE STANDARD LIFE -LIFE LTD INSURANCE-20o GAS 242-000- 00 355.53 LIFE INSURANCE-20o GAS 242-000- 00 202.12 HECK GEN 70410 TOTAL 557.65 12/04/2019 GEN 70411* ROBERT ROBBEN OR CAROLL ROBBEN DEP REFUND/APPLIED 235-000- 00 49. 00 12/04/2019 GEN 70412* ROBERT TORDSEN OR KAREN TORDSEN DEP REFUND/APPLIED 235-000- 00 80.50 12/04/2019 GEN 70413 RYAN ELLENSON Uniforms & Laundry 401-880- 04 202.46 12/04/2019 GEN 70415* SHRED RIGHT OFFICE SUPPLIES -SHREDDING SERVICES 401-921- 08 4.16 12/04/2019 GEN 70416* STANDARD PRINTING & MAILING Cip - Residential 401-916- 07 54.21 12/04/2019 GEN 70417* SURVALENT TECHNOLOGY, INC SCADA MASTER (ELEC DIV & GAS DIV) 401-921- 08 15,133.87 12/04/2019 GEN 70418* TERRY MCDONALD Cip - Residential 401-916- 07 400.00 12/04/2019 GEN 70419 TONY BRIDGE Cip - Residential 401-916- 07 100.00 12/04/2019 GEN 70420*4 TOTALFUNDS Collection - Materials 401-903- 06 900.00 12/12/2019 08:36 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 11/21/2019 - 12/12/2019 Description 12/04/2019 GEN 70421*4 TOYOTA LIFT OF MINNESOTA 12/04/2019 GEN 70423* UIS/SOURCECORP 12/04/2019 GEN 70424* UNITED PARCEL SERVICE 12/04/2019 GEN 70426* VERIZON WIRELESS 12/04/2019 GEN 70428* VIRGINIA FOX 12/09/2019 GEN 490(E)* TASC 12/12/2019 GEN 70434* ANDY NISSEN 12/12/2019 GEN 70435* BORDER STATES ELECTRIC SUPPLY 12/12/2019 GEN 70436 BROWN COUNTY RURAL ELECTRIC Account Dept Pag 18/21 Amount Fund: 2 GAS Postage 401-921- 08 500.00 HECK GEN 70420 TOTAL 1,400.00 POWER EQUIPMENT - MATERIALS 402-895- 04 13.34 POWER EQUIPMENT - MATERIALS 402-895- 04 40.44 POWER EQUIPMENT - MATERIALS 402-895- 04 13.34 CHECK GEN 70421 TOTAL 67.12 COLLECTION - MATERIALS 401-903- 06 355.68 COLLECTION - MATERIALS 401-903- 06 1,167.26 HECK GEN 70423 TOTAL 1,522.94 MAIL SERVICES - UPS, FEDEX 401-921- 08 45.43 TELEPHONE 401-921- 08 389.34 DEP REFUND/APPLIED 235-000- 00 66.50 Prepaid HRA 174-000- 00 275.00 Cip - Residential 401-916- 07 400.00 VALVE, BALL, 4" WELD X WELD, 154-000- 00 831.24 TAPE, TEFLON, 1/2" X 260", HIGH 154-000- 00 5.26 WIRE, 410 SOLID BARE CU, WITH 45 MILS 154-000- 00 525.00 TAPE, TEFLON, 1/2" X 260", HIGH 154-000- 00 17.53 VALVE BOX, HANI-G4VAC4N22 154-000- 00 404.42 VALVE BOX, 6" WIDTH WITH 12" BELL, 154-000- 00 1, 504.48 FLANGE, WELD NECK, FLAT FACED , 150 154-000- 00 77.76 HECK GEN 70435 TOTAL 3,365.69 Utilities (Electric, Satellite 401-856- 05 144.10 12/12/2019 08:36 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 11/21/2019 - 12/12/2019 Payee Description Account Pag Dept 19/21 Amount Fund: 2 GAS 12/12/2019 GEN 70437* CARD SERVICES BREAKROOM/RECOGNITION BANQUET 401-926- 08 83.47 12/12/2019 GEN 70440 CENTURYLINK Utilities (Electric, Satellite 401-856- 05 56.67 12/12/2019 GEN 70441*4 CINTAS CORPORATION 4470 UNIFORMS & LAUNDRY 401-880- 04 243.43 12/12/2019 GEN 70442*4 CITY OF HUTCHINSON VEHICLE/EQUIPMENT FUEL -GAS 401-880- 04 1,726.16 IT ADMIN AND SUPPORT 250 401-921- 08 2, 499. 57 VEHICLES/EQUIPMENT FUEL-ADMIN 55/45 401-935- 08 78.30 Vehicles - Material 401-935- 08 57.12 HECK GEN 70442 TOTAL 4,361.15 12/12/2019 GEN 70445 GROEBNER & ASSOCIATES INC TEE, TAPPING, ASBLY, 2" X 3/4" IPS MDPE 154-000- 00 593.28 12/12/2019 GEN 70446*4 HANSEN GRAVEL INC Mains 107-376- 00 128.85 Services 107-380- 00 22.55 MATERIALS 401-874- 04 165.36 HECK GEN 70446 TOTAL 316.76 12/12/2019 GEN 70448* HORACE STRANG Cip - Residential 401-916- 07 400.00 12/12/2019 GEN 70449 HUGHES NETWORK SYSTEMS UTILITIES -NEW ULM COMMUNICATIONS 401-856- 05 106. 94 12/12/2019 GEN 70451 HUTCHINSON CO-OP Vehicle/Equipment Fuel 401-880- 04 44.65 12/12/2019 GEN 70452*4 HUTCHINSON LEADER MATERIALS -NATURAL GAS SAFETY 401-874- 04 322.63 CIP - MARKETING 401-916- 07 17.50 HECK GEN 70452 TOTAL 340.13 12/12/2019 GEN 70454* JIM DEFOE Cip - Residential 401-916- 07 400.00 12/12/2019 GEN 70455* JIM HELGET Cip - Residential 401-916- 07 400.00 12/12/2019 GEN 70456* JLR GARAGE DOOR SERVICE INC Misc Other - Materials 401-935- 08 164.94 12/12/2019 08:36 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee 12/12/2019 GEN 70462* 12/12/2019 GEN 70467 12/12/2019 GEN 70469 12/12/2019 GEN 70470 12/12/2019 GEN 70471*4 12/12/2019 GEN 70472 12/12/2019 GEN 70473* 12/12/2019 GEN 70474*4 CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 11/21/2019 - 12/12/2019 Description LOIS KRANTZ MICRO MOTION NOVASPECT INC NIL O'REILLY AUTOMOTIVE INC OMEGA RAIL MANAGEMENT ONE CALL NOW OXYGEN SERVICE COMPANY INC 12/12/2019 GEN 70475* PREMIUM WATERS INC 12/12/2019 GEN 70476*4 PRO AUTO & TRANSMISSION REPAIR 12/12/2019 GEN 70478 ROSS SEIFERT 12/12/2019 GEN 70479*4 RUNNING'S SUPPLY INC Account Dept Pag 20/21 Amount Fund: 2 GAS Cip - Residential 401-916- 07 400.00 STARTUPI, START IP ASST, FIRST METER 107-369- 00 1,362.66 STARTUPADDL, START UP 107-369- 00 3,056.63 HECK GEN 70467 TOTAL 4,419.29 Fisher 299H Pressure Reducing 107-385- 00 6,046.65 Fisher 299H Pressure Reducing 107-385- 00 180.68 CHECK GEN 70469 TOTAL 6,227.33 Install 565' of 2" Steel and two 107-376- 00 37,868.52 Vehicles - Material 402-895- 04 14.32 RAILROAD LICENSES 401-856- 05 1, 694.58 Collection - Materials 401-903- 06 326.00 Materials 401-874- 04 18.57 MILLER HELMET, 251292 (TIM'S) 401-874- 04 129.81 HECK GEN 70474 TOTAL 148.38 OFFICE SUPPLIES -BOTTLED WATER 401-921- 08 6.97 VEHICLES - MATERIAL -GAS 402-895- 04 184.49 VEHICLES - MATERIAL-ADMIN 55/45 401-935- 08 17.30 HECK GEN 70476 TOTAL 201.79 Cip - Residential 401-916- 07 25.00 Materials 401-874- 04 21.49 Other Equipment - Materials 402-895- 04 33.91 HECK GEN 70479 TOTAL 55.40 12/12/2019 08:36 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 11/21/2019 - 12/12/2019 Description 12/12/2019 GEN 70481* RYAN LARSON 12/12/2019 GEN 70483 SPRINT 12/12/2019 GEN 70485* TERI VANDESTEEG 12/12/2019 GEN 70486* TOYOTA LIFT OF MINNESOTA 12/12/2019 GEN 70487* TRANE 12/12/2019 GEN 70489* VIDEOTRONIX INC 12/12/2019 GEN 70491*4 WEST CENTRAL SANITATION INC Account Dept Fund: 2 GAS Cip - Residential 401-916- 07 Utilities (Electric, Satellite 401-856- 0S Cip - Residential 401-916- 07 Vehicles - Material 401-935- 08 LEASE/SERVICE AGREEMENTS 401-921- 08 GROUNDS - OUTSIDE SERVICES 401-935- 08 UTILITY EXPENSES - WATER/WASTE 45/55 401-930- 08 Total for fund 2 GAS TOTAL - ALL FUNDS '*'-INDICATES CHECK DISTRIBUTED TO MORE THAN ONE FUND '#'-INDICATES CHECK DISTRIBUTED TO MORE THAN ONE DEPARTMENT Pag 21/21 Amount 400.00 133.00 25.00 72.09 303.44 192.38 64.37 110,822.67 793,689.59 HUTCHINSON UTILITIES COMMISSION COMBINED DIVISIONS FINANCIAL REPORT FOR NOVEMBER, 2019 Combined Division Customer Revenue Sales for Resale NU Transportation Electric Division Transfer Other Revenues Interest Income TOTALREVENUES Salaries & Benefits Purchased Commodities Transmission Generator Fuel/Chem. Depreciation Transfers (Elect./City) Operating Expense Debt Interest TOTAL EXPENSES NET PROFIT/(LOSS) 2019 2018 Di %Chng 2019 2018 Di %Chng Full YrBud %of Bud $ 2,965,106 $ 3,130,421 $ (165,316) (5.3%) $ 32,279,101 $ 33,069,138 $ (790,037) (2.4%) $ 36,285,018 89.0% $ 199,549 $ 204,258 $ (4,709) (2.3%) $ 2,568,552 $ 2,885,563 $ (317,010) (11.0%) $ 2,951,500 87.0% $ 85,460 $ 80,767 $ 4,694 5.8% $ 957,561 $ 858,731 $ 98,830 11.5% $ 885,452 108.1% $ 54,982 $ 54,697 $ 285 0.5% $ 604,801 $ 601,669 $ 3,132 0.5% $ 659,783 91.7% $ 42,546 $ 45,494 $ (2,948) (6.5%) $ 550,863 $ 583,707 $ (32,844) (5.6%) $ 490,208 112.4% $ 27,678 $ 30,645 $ (2,967) (9.7%) $ 473,844 $ 319,037 $ 154,807 48.5% $ 283,456 167.2% $ 3,375,321 $ 3,546,282 $ (170,962) (4.8%) $ 37,434,723 $ 38,317,844 $ (883,121) (2.3%) $ 41,555,417 90.1% $ 487,225 $ 460,179 $ 27,046 5.88% $ 5,500,642 $ 5,329,150 $ 171,492 3.2% $ 6,676,681 82.4% $ 1,632,670 $ 1,820,268 $ (187,598) (10.3%) $ 17,834,750 $ 18,661,808 $ (827,058) (4.4%) $ 19,155,179 93.1% $ 201,516 $ 194,975 $ 6,541 3.4% $ 2,696,861 $ 2,274,858 $ 422,003 18.6% $ 3,380,000 79.8% $ 4,508 $ 50,006 $ (45,498) (91.0%) $ 612,064 $ 1,094,951 $ (482,888) (44.1%) $ 1,139,850 53.7% $ 327,083 $ 325,667 $ 1,417 0.4% $ 3,597,917 $ 3,582,333 $ 15,583 0.4% $ 3,925,000 91.7% $ 188,434 $ 158,986 $ 29,448 18.5% $ 2,072,773 $ 1,748,849 $ 323,924 18.5% $ 2,261,207 91.7% $ 139,801 $ 146,880 $ (7,079) (4.8%) $ 2,174,500 $ 1,792,214 $ 382,286 21.3% $ 2,791,443 77.9% $ 97,334 $ 98,621 $ (1,287) (1.3%) $ 1,070,672 $ 1,134,135 $ (63,463) 5.6% $ 1,168,007 91.7% $ 3,078,571 $ 3,255,582 $ (177,011) (5.4%) $ 35,560,179 $ 35,618,298 $ (58,119) (0.2%) $ 40,497,367 87.8% $ 296,749 $ 290,700 $ 6,049 2.1%1 1,874,544 $ 2,699,546 $ (825,002) (30.6%) $ 1,058,050 177.2% November November YTD YTD 2019 2018 Change 2019 2018 Change Gross Margin % 36.1% 33.7% 2.4% 33.1% 34.3% -1.2% Operating Income Per Revenue $ (%) 10.4% 9.6% 0.8% 5.9% 8.4% -2.5% Net Income Per Revenue $ (%): 8 8°% 8.2°% 0.6% 5.0% 7.0% -2.0% 2019 HUC Budget Target 4.2°% 2.5% HUTCHINSON UTILITIES COMMISSION ELECTRIC DIVISION FINANCIAL REPORT FOR NOVEMBER, 2019 �y p 91.67% of Year Camp.; 2019 2018 Di %Chng 2019 2018 Di %Chng Full YrBud %ofBud Electric Division Customer Revenue $ 1,798,343 $ 1,863,067 $ (64,724) (3.5%) $ 23,031,107 $ 23,397,358 $ (366,251) (1.6%) $ 26,118,530 88.2% Sales for Resale $ 199,549 $ 204,258 $ (4,709) (2.3%) $ 2,568,552 $ 2,885,563 $ (317,010) (11.0%) $ 2,951,500 87.0% Other Revenues $ 16,470 $ 19,013 $ (2,544) (13.4%) $ 236,439 $ 247,713 $ (11,274) (4.69/c) $ 203500 116.2% Interest Income $ 15,233 $ 16,716 $ (1,483) (8.9%) $ 252,639 $ 174,853 $ 77,786 44.5% $ 158:456 159.4% TOTAL REVENUES $ 2,029,594 $ 2,103,055 $ (73,460) (3.5%) $ 26,088,738 $ 26,705,486 $ (616,748) (2.3%) $ 29,431,986 88.6% Salaries & Benefits $ 358,880 $ 364,943 $ (6,063) (1.7%) $ 4,073,863 $ 4,193,459 $ (119,595) (2.9%) $ 4,964,884 82.1% Purchased Power $ 963,757 $ 1,059,898 $ (96,140) (9.1%) $ 12,637,197 $ 13,432,801 $ (795,605) (5.9%) $ 13,640,000 92.6% Transmission $ 201,516 $ 194,975 $ 6,541 3.4% $ 2,696,861 $ 2,274,858 $ 422,003 18.6% $ 3,380,000 79.8% Generator Fuel/Chem. $ 4,508 $ 50,006 $ (45,498) (91.0%) $ 612,064 $ 1,094,951 $ (482,888) (44.1%) $ 1,139,850 53.7% Depreciation $ 241,667 $ 241,667 $ - 0.0% $ 2,658,333 $ 2,658,333 $ - 0.0% $ 2,900,000 91.7% Transfers (Elect./City) $ 147,172 $ 128,224 $ 18,947 14.8% $ 1,618,890 $ 1,410,469 $ 208,422 14.8% $ 1,766,062 91.7% Operating Expense $ 86,515 $ 105,994 $ (19,479) (18.4%) $ 1,508,185 $ 1,225,982 $ 282,202 23.0% $ 1,749,498 86.2% Debt Interest $ 46,555 $ 42,446 $ 4,108 9.7% $ 512,102 $ 516,210 $ (4,108) 0.8% $ 558,657 91.7% TOTAL EXPENSES $ 2,050,570 $ 2,188,153 $ (137,583) (6.3%) $ 26,317,494 $ 26,807,064 $ (489,569) (1.8%) $ 30,098,951 87.4% NET PROFIT/(LOSS) $ (20,976) $ (85,098) $ 64,123 (75.4%) $ (228,757) $ (101,578) $ (127,179) 125.2% $ (666,965) 34.3% 2019 2018 Di %Chng 2019 2018 Di . %Chng Full YrBud %ofBud Electric Division Residential 3,864,043 4,042,594 (178,551) (4.42%) 46,240,306 47,399,470 (1,159,164) (2.45%) 50,327,925 91.9% All Electric 265,476 292,316 (26,840) (9.18%) 2,303,198 2,296,045 7,153 0.31% 2,504,213 92.0% Small General 1,476,109 1,587,311 (111,202) (7.01%) 17,244,374 17,493,367 (248,993) (1.42%) 17,687,385 97.5% Large General 5,955,740 6,303,850 (348,110) (5.52%) 73,895,510 72,905,290 990,220 1.36% 77,713,164 95.1% Industrial 8,256,000 9,036,000 (780,000) (8.63%) 109,740,000 119,100,000 (9,360,000) (7.86%) 135,502,800 81.0% Total KWH Sold 19,817,368 21,262,071 (1,444,703) (6.79%) 249,423,388 259,194,172 (9,770,784) (3.77%)l 283,735,487 87.9% November November YTD YTD 2019 HUC 2019 2018 Change 2019 2018 Change Budget Target Gross Margin % 28.3% 25.8% 2.5% 25.7% 26.6% -0.9% 25.3% Operating Income Per Revenue $ (%) 0.5% -2.9% 3.4% -0.1% 0.6% -0.7% -0.9% 0%-5% Net Income Per Revenue $ (%): -1.0% -4.0% 3.0% -0.9% -0.4% -0.5% -2.3% 0%-5% Customer Revenue per KWH: $0.0907 $0.0876 $0.0031 $0.0919 $0.0898 $0.0021 $0.0915 Total Power Supply Exp. per KWH: $0.0728 $0.0727 $0.0001 $0.0767 $0.0749 $0.0019 $0.0771 Electric Divison net loss of $20,976 was a $64,123 improvement over 2018. Usage and revenue were down in all classes but the related expenses in purchased power and fuels were also down. Sales for Resale of $199,549 consisted of $5,065 in market sales, $36,400 in the monthly tolling fee from Transalta, $8,584 in Transalta energy sales, $136,000 in capacity sales to SMMPA and $13,500 in capacity sales to AEP. November 2018 Sales for Resale of $204,258 consisted of $24,131 in market sales, $35,600 in monthly tolling fees from Transalta, $28,527 in Transalta energy sales, and $116,000 in capacity sales to SMMPA. November 2017 Sales for Resale of $180,357 consisted of $17,455 in market sales, $34,400 in Transalta tolling fees, $32,502 in Transalta energy sales, and $96,000 SMMPA capacity sales. Overall Purchased Power decreased by $96,140. MRES purchases decreased by $28,249 and market purchases/MISO costs decreased by $67,891. November power cost adjustment was $.00464/kwhr bringing in an additional $92,169 in revenue for the month and $1,740,087 YTD. Last year's power cost adjustment for November 2018 generated $55,044 in additional revenue for the month and $1,456,854 YTD. HUTCHINSON UTILITIES COMMISSION GAS DIVISION FINANCIAL REPORT FOR NOVEMBER, 2019 9167% of Year Camp. 2019 2018 Di %Chng 2019 2018 Di %Chng Full YrBud %ofBud Gas Division Customer Revenue $ 1,166,763 $ 1,267,354 $ (100,592) (7.9%) $ 9,247,995 $ 9,671,781 $ (423,786) (4.4%) $ 10,166,488 91.0% Transportation $ 85,460 $ 80,767 $ 4,694 5.8% $ 957,561 $ 858,731 $ 98,830 11.5% $ 885,452 108.1% Electric Div. Transfer $ 54,982 $ 54,697 $ 285 0.5% $ 604,801 $ 601,669 $ 3,132 0.5% $ 659,783 91.7% Other Revenues $ 26,076 $ 26,481 $ (405) (1.5%) $ 314,423 $ 335,994 $ (21,570) (6.4%) $ 286,708 109.7% Interest Income $ 12,445 $ 13,928 $ (1,483) (10.7%) $ 221,205 $ 144,184 $ 77,021 53.4% $ 125,000 177.0% TOTAL REVENUES $ 1,345,726 $ 1,443,228 $ (97,501) (6.8%) $ 11,345,985 $ 11,612,358 $ (266,373) (2.3%) $ 12,123,431 93.6% Salaries & Benefits $ 128,345 $ 95,235 $ 33,109 34.8% $ 1,426,779 $ 1,135,691 $ 291,088 25.6% $ 1,711,797 83.3% Purchased Gas $ 668,912 $ 760,370 $ (91,458) (12.0%) $ 5,197,553 $ 5,229,006 $ (31,453) (0.6%) $ 5,515,179 94.2% Operating Expense $ 53,286 $ 40,887 $ 12,400 30.3% $ 666,315 $ 566,232 $ 100,083 17.7% $ 1,041,945 63.9% Depreciation $ 85,417 $ 84,000 $ 1,417 1.7% $ 939,583 $ 924,000 $ 15,583 1.7% $ 1,025,000 91.7% Transfers (City) $ 41,262 $ 30,762 $ 10,500 34.1% $ 453,883 $ 338,380 $ 115,503 34.1% $ 495,145 91.7% Debt Interest $ 50,779 $ 56,175 $ (5,395) 0.0% $ 558,571 $ 617,925 $ (59,354) ja.6% $ 609,350 91.7% TOTAL EXPENSES $ 1,028,001 $ 1,067,429 $ (39,428) (3.7%) $ 9,242,684 $ 8,811,234 $ 431,450 4.9% $ 10,398,416 88.9% $N 3317,725 $ 375,799 $ (15.5%)l $ 1,725,015 121.9% $ 2,103,301 $ 2,801,124 $ (697,823) (24.9%) �yyNETPROFIIIT//(LOSS) p(58,074) 91.67% of Year Comp. 2019 2018 Di %Chng 2019 2018 Di %Chng Full YrBud %ofBud Gas Division Residential 53,567,944 58,254,236 (4,686,292) (8.04%) 388,939,837 380,166,965 8,772,872 2.31% 421,716,000 92.2% Commercial 45,003,943 43,254,689 1,749,254 4.04% 305,940,183 303,078,165 2,862,018 0.94% 330,746,000 92.5% Industrial 94,908,902 82,843,210 12,065,692 14.569/c 783,207,946 772,264,289 10,943,657 1.429/c 822,478,000 95.2% Total CF Sold 193,480,789 184,352,135 9,128,654 4.95% 1,478,087,966 1,455,509,419 22,578,547 1.55% 1,574,940,000 93.9% November November YTD YTD 2019 HUC 2019 2018 Change 2019 2018 Change Budget Target Gross Margin % 48.0% 45.4% 2.7% 50.6% 52.3% -1.7% 51.5% Operating Income Per Revenue $ (%) 25.6% 28.2% -2.6% 20.2% 26.8% -6.7% 16.9% Net Income Per Revenue $ (%): 24.3% 26.8% -2.5% 19.5% 25.2% -5.7% 14.7% IIIIIIIIIIIIIIIIIIIII Contracted Customer Rev. per CF: $0.0038 $0.0047 -$0.0009 $0.0039 $0.0041 -$0.0002 $0.0038 IIIIIIIIIIIIIIIIIIIII Customer Revenue per CF: $0.0081 $0.0086 -$0.0005 $0.0086 $0.0092 -$0.0006 $0.0090 $0.0090 Total Power Supply Exp. per CF: $0.0035 $0.0042 ($0.0006) $0.0036 $0.0037 ($0.0000) $0.0036 Natural Gas net income decreased by $58,074 with a decrease in customer revenue. November's fuel cost credit adjustment was $1.17723/MCF totalling $120,618 for the month and $883,928 YTD. November 2018 credits totalled $135,413 for the month and $658,502 YTD. Current Assets UnrestrictedlUndesignated Cash Cash Petty Cash Designated Cash Capital Expenditures - Five Yr. CIP Payment in Lieu of Taxes Rate Stabilization - Electric Rate Stabilization - Gas Catastrophic Funds Restricted Cash Bond Interest Payment 2017 Bond Interest Payment 2012 Debt Service Reserve Funds Total Current Assets Receivables Accounts (net of uncollectible allowances) Interest Total Receivables Other Assets Inventory Prepaid Expenses Sales Tax Receivable Deferred Outflows - Electric Deferred Outflows - Gas Total Other Assets Total Current Assets Capital Assets Land & Land Rights Depreciable Capital Assets Accumulated Depreciation Construction - Work in Progress Total Net Capital Assets Total Assets HUTCHINSON UTILITIES COMMISSION BALANCE SHEET - CONSOLIDATED NOVEMBER 30, 2019 Electric Gas Total Division Division 2019 6,688,064.58 9,433,190.02 16,121,254.60 680.00 170.00 850.00 2,750,000.00 700,000.00 3,450,000.00 1,106,279.00 495,145.00 1,601,424.00 372,736.68 - 372,736.68 - 651,306.61 651,306.61 400,000.00 100,000.00 500,000.00 Total Net Change 2018 Total (YTD) 16, 054, 300.91 66, 953.69 850.00 - 3,450,000.00 1,251,469.00 349,955.00 372,736.68 - 651,306.61 - 500,000.00 - 500,000.01 - 500,000.01 1,276,555.44 (776,555.43) - - - 1,969,100.00 (1,969,100.00) 522,335.64 2,188,694.02 2,711,029.66 2,711,029.66 - 12,340,095.91 13,568,505.65 25,908,601.56 28,237,348.30 (2,328,746.74) 1,833,674.54 1,316,812.59 3,150,487.13 3,210,086.31 (59,599.18) 23,632.29 23,632.29 47,264.58 38,078.98 9,185.60 1,857,306.83 1,340,444.88 3,197,751.71 3,248,165.29 (50,413.58) 1,486,975.42 452,377.50 1,939,352.92 1,624,142.09 315,210.83 148,067.11 12,684.07 160,751.18 63,980.88 96,770.30 78,860.35 - 78,860.35 63,284.63 15,575.72 494,053.00 - 494,053.00 752,887.00 (258,834.00) - 164,685.00 164,685.00 250,962.00 (86,277.00) 2,207,955.88 629,746.57 2,837,702.45 2,755,256.60 82,445.85 16,405,358.62 15,538,697.10 31,944,055.72 34,240,770.19 (2,296,714.47) 690,368.40 3,899,918.60 4,590,287.00 4,590,287.00 - 90,205,971.57 41,684,214.28 131,890,185.85 130,896,158.68 994,027.17 (57,829,717.59) (17,025,989.55) (74,855,707.14) (71,117,911.90) (3,737,795.24) 16,974,962.92 400,663.89 17,375,626.81 12,904,193.36 4,471,433.45 50,041,585.30 28,958,807.22 79,000,392.52 77,272,727.14 1,727,665.38 66,446,943.92 44,497,504.32 110,944,448.24 111,513,497.33 (569,049.09) Current Liabilities Current Portion of Long-term Debt Bonds Payable Bond Premium Accounts Payable Accrued Expenses Accrued Interest Accrued Payroll Total Current Liabilities Long -Term Liabilities Noncurrent Portion of Long-term Debt 2017 Bonds 2012 Bonds Bond Premium 2012 Pension Liability- Electric Pension Liability - Electric OPEB Pension Liability - Nat Gas Pension Liability - Nat Gas OPEB Accrued Vacation Payable Accrued Severance Deferred Outflows - Electric Deferred Outflows - Nat Gas Total Long -Term Liabilities Net Position Retained Earnings Total Net Position HUTCHINSON UTILITIES COMMISSION BALANCE SHEET - CONSOLIDATED NOVEMBER 30, 2019 Electric Gas Total Division Division 2019 625,000.00 2,231,310.83 44,273.93 2,900,584.76 15,425,000.00 602,225.28 2,700,290.00 72,192.00 366,391.02 77,139.06 804,800.00 20,048,037.36 1,370,000.00 185,608.32 1,106, 348.02 16, 006.13 2,677,962.47 11,160,000.00 1,113, 649.55 900,097.00 24,064.00 111, 060.50 29,491.28 268,267.00 13,606,629.33 1,995,000.00 185,608.32 3,337,658.85 60,280.06 5,578,547.23 15,425,000.00 11,160,000.00 1,715,874.83 2,700,290.00 72,192.00 900,097.00 24,064.00 477,451.52 106,630.34 804,800.00 268,267.00 33,654,666.69 Total 2018 1,295,000.00 185,608.32 3,505,188.29 52,808.33 5,038,604.94 16,675,000.00 12,605,000.00 1,934,940.11 3,083,440.00 1,027,813.00 426, 510.04 102, 320.61 794,370.00 264,790.00 36,914,183.76 Net Change Total (YTD) 700,000.00 (167, 529.44) 7,471.73 539,942.29 (1,250,000.00) (1,445,000.00) (219,065.28) (383,150.00) 72,192.00 (127,716.00) 24,064.00 50,941.48 4,309.73 10,430.00 3,477.00 (3,259,517.07) 43,498,321.80 28,212,912.52 71,711,234.32 69,560,708.63 2,150,525.69 43,498,321.80 28,212,912.52 71,711,234.32 69,560,708.63 2,150,525.69 Total Liabilities and Net Position 66,446,943.92 44,497,504.32 110,944,448.24 111,513,497.33 (569,049.09) Hutchinson Utilities Commission Cash -Designations Report, Combined 11/30/2019 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest November 2019 October 2019 Position Savings, Checking, Investments varies varies varies 25,908,601.56 28,486,436.46 (2,577,834.90) Total Operating Funds 25,908,601.56 28,486,436.46 (2,577,834.90) Debt Reserve Requirements Bond Covenants - sinking fund Debt Reserve Requirements Bond Covenants -1 year Max. P & I Total Restricted Funds 500,000.01 3,390,830.76 (2,890,830.75) 2,711,029.66 2,711,029.66 3,211,029.67 6,101,860.42 (2,890,830.75) Operating Reserve Min 60 days of 2019 Operating Bud. 6,086,812.00 6,086,812.00 Rate Stabalization Funds 1,024,043.29 1,024,043.29 PILOT Funds Charter (Formula Only) 1,601,424.00 1,601,424.00 Catastrophic Funds Risk Mitigation Amount 500,000.00 500,000.00 Capital Reserves 5 Year CIP ( 2019-2023 Fleet & Infrastructure Maintenance) 3,450,000.00 3,450,000.00 Total Designated Funds 12,662,279.29 12,662,279.29 YE YE YE YE YTD HUC 2015 2016 2017 2018 2019 Target Debt to Asset 32.4% 32.2% 40.2% 37.7% 35.4% Current Ratio 2.52 3.06 3.36 3.93 5.03 RONA 1.31% 2.17% 1.82% 3.43% 1.85% Notes/Graphs: Change in Cash Balance (From 12131114 to 1113012019) Month End Electric Elec. Change Natural Gas Gas Change Total Total Change 11/30/2019 12,340,096 13,568,506 25,908,602 12/31/2018 15,559,867 (3,219,771) 12,335,998 1,232,508 27,895,864 (1,987,263) 12/31/2017 23,213,245 (7,653,378) 10,702,689 1,633,309 33,915,934 (6,020,070) 12/31/2016 8,612,801 14,600,444 9,500,074 1,202,615 18,112,875 15,803,059 12/31/2015 6,170,790 2,442,011 9,037,373 462,701 15,208,163 2,904,712 12/31/2014 3,598,821 2,571,969 6,765,165 2,272,208 10,363,986 4,844,177 * 2017's Signifcant increase in cash balance is due to issuing bonds for the generator project. Hutchinson Utilities Commission Cash -Designations Report, Electric 11/30/2019 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest November 2019 October 2019 Position Savings, Checking, Investments varies varies Total HUC Operating Funds Debt Restricted Requirements Bond Covenants - sinking fund Debt Restricted Requirements Bond Covenants -1 year Max. P & I Total Restricted Funds varies 25,908,601.56 28,486,436.46 (2,577,834.90) 25,908,601.56 28,486,436.46 (2,577,834.90) 500,000.01 1,585,018.24 (1,085,018.23) 522,335.64 522,335.64 1,022,335.65 2,107,353.88 (1,085,018.23) Operating Reserve Min 60 days of 2019 Operating Bud. 4,532,992.00 4,532,992.00 Rate Stabalization Funds $400K-$1.2K 372,736.68 372,736.68 PILOT Funds Charter (Formula Only) 1,106,279.00 1,106,279.00 Catastrophic Funds Risk Mitigation Amount 400,000.00 400,000.00 Capital Reserves 5 Year CIP ( 2019-2023 Fleet & Infrastructure Maintenance) 2,750,000.00 2,750,000.00 Total Designated Funds 9,162,007.68 9,162,007.68 YE YE YE YE YTD APPA Ratio HUC 2015 2016 2017 2018 2019 SK-10K Cust. Target Debt to Asset Ratio (* w/Gen.) 13.9% 16.7% 35.4% 35.7% 34.5% 50.1% Current Ratio 2.95 3.57 4.36 3.63 5.13 2.43 RONA -1.2% -0.4% -0.6% -0.3% -0.4% NA >0% Notes/Graphs: The decrease in cash for the month was mostly due to a bond payment of $904,328 and a $152,721 payment to Caterpillar. The remaining CAT balance to be paid is $91,685. Hutchinson Utilities Commission Cash -Designations Report, Gas 11/30/2019 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest November 2019 October 2019 Position Savings, Checking, Investments varies varies varies 25,908,601.56 28,486,436.46 (2,577,834. Total HUC Operating Funds 25,908,601.56 28,486,436.46 (2,577,834. Debt Restricted Requirements Bond Covenants - sinking fund Debt Restricted Requirements Bond Covenants -1 year Max. P & I Total Restricted Funds - 1,805,812.52 (1,805,812.52) 2,188,694.02 2,188,694.02 2,188,694.02 3,994,506.54 (1,805,812.52) Operating Reserve Min 60 days of 2019 Operating Bud. 1,553,820.00 1,553,820.00 Rate Stabalization Funds $200K-$600K 651,306.61 651,306.61 PILOT Funds Charter (Formula Only) 495,145.00 495,145.00 Catastrophic Funds Risk Mitigation Amount 100,000.00 100,000.00 Capital Reserves 5 Year CIP ( 2019-2023 Fleet & Infrastructure Maintenance) 700,000.00 700,000.00 Total Designated Funds 3,500,271.61 3,500,271.61 YE YE YE YE YTD HUC 2015 2016 2017 2018 2019 APGA Ratio Target Debt to Asset 55.0% 51.2% 47.6% 40.7% 36.6% TBD Current Ratio 2.17 2.59 2.74 4.33 4.92 TBD RONA 4.7% 5.6% 5.0% 8.3% 5.3% TBD decrease in cash in November HUTCHINSON UTILITIES COMMISSION Investment Report For the Month Ended November 30, 2019 Interest Current Date of Date of Par Current Purchase Unrealized Premium Next Institution Description Rate YTM Purchase Maturity Value Value Amount Gain/(Loss) (Discount) Call Date Wells Fargo Money Market 1.120 % 1.120 % NA NA - 26,804.46 - - - N/A Wells Fargo CD's 2.550% 2.550% 08/21/2018 02/21/2020 245,000.00 245,534.10 245,000.00 534.10 - N/A Wells Fargo CD's 2.450 % 2.450 % 03/27/2019 03/27/2020 245,000.00 245,663.95 245,000.00 663.95 - N/A Wells Fargo CD's 1.900 % 1.900 % 08/21/2019 08/23/2021 174,000.00 174,702.96 174,000.00 702.96 - N/A Wells Fargo CD's 2.500 % 2.500 % 04/02/2019 04/05/2021 245,000.00 247,878.75 245,000.00 2,878.75 - N/A Wells Fargo CD's 2.000% 2.000% 04/07/2016 10/07/2021 245,000.00 245,301.35 245,000.00 301.35 - 04/07/2020 Wells Fargo CD's 2.000% 2.000% 10/07/2019 12/31/2020 245,000.00 245,338.10 245,000.00 338.10 - 01/07/2020 Wells Fargo CD's 2.150 % 2.150 % 06/27/2017 06/27/2022 245,000.00 245,110.25 245,000.00 110.25 - 12/27/2019 Wells Fargo CD's 2.000% 2.000% 08/22/2019 08/22/2022 200,000.00 199,466.00 200,000.00 (534.00) - 03/29/2020 Wells Fargo FHLMC - Step 2.000% 2.192 % 06/29/2017 06/29/2022 275,000.00 275,041.25 275,000.00 41.25 - 12/29/2019 Wells Fargo FHLMC - Step 2.000% 2.256% 10/27/2016 10/27/2023 1,025,000.00 1,025,051.25 1,025,000.00 51.25 01/27/2020 Broker Total 25.7% 3,144,000.00 3,175,892.42 3,144,000.00 5,087.96 - Cetera Investment Services Money Market 0.070 % 0.070 % N/A N/A - 4,658.82 - - - N/A Cetera Investment Services Municipal Bonds 2.995% 2.073% 03/07/2016 07/01/2020 250,000.00 251,700.00 260,835.21 (9,135.21) 10,835.21 N/A Cetera Investment Services Municipal Bonds 2.750% 1.881 % 03/07/2016 08/01/2020 250,000.00 251,582.50 259,820.00 (8,237.50) 9,820.00 N/A Cetera Investment Services Municipal Bonds 5.000% 1.610% 10/11/2016 01/01/2020 250,000.00 250,742.50 276,500.00 (25,757.50) 26,500.00 N/A Cetera Investment Services Municipal Bonds 2.300% 1.715% 12/11/2017 10/01/2020 100,000.00 100,457.00 101,595.00 (1,138.00) 1,595.00 N/A Cetera Investment Services Municipal Bonds 2.875% 2.121 % 04/29/2016 09/01/2021 250,000.00 253,857.50 259,467.50 (5,610.00) 9,467.50 N/A Cetera Investment Services Municipal Bonds 3.751 % 2.399% 04/29/2016 11/01/2021 250,000.00 255,905.00 267,330.00 (11,425.00) 17,330.00 N/A Cetera Investment Services Municipal Bonds 3.139% 2.190% 12/11/2017 09/01/2021 300,000.00 305,565.00 310,116.00 (4,551.00) 10,116.00 N/A Cetera Investment Services Municipal Bonds 3.436% 3.436% 12/20/2018 12/15/2021 50,000.00 47,662.00 45,155.00 2,507.00 (4,845.00) N/A Cetera Investment Services Municipal Bonds 2.655% 2.208% 12/11/2017 03/01/2022 300,000.00 304,629.00 305,314.92 (685.92) 5,314.92 N/A Cetera Investment Services Municipal Bonds 3.000% 3.118% 12/20/2018 08/01/2022 50,000.00 51,204.50 50,377.67 826.83 377.67 N/A Cetera Investment Services Municipal Bonds 3.633% 3.116% 12/20/2018 09/01/2022 250,000.00 259,547.50 257,217.48 2,330.02 7,217.48 N/A Cetera Investment Services Municipal Bonds 3.240% 3.240% 11/17/2017 02/15/2023 80,000.00 73,729.60 69,633.48 4,096.12 (10,366.52) N/A Cetera Investment Services Municipal Bonds 3.650% 3.004% 12/20/2018 02/01/2023 250,000.00 260,480.00 256,165.00 4,315.00 6,165.00 N/A Cetera Investment Services Municipal Bonds 3.075% 3.236% 12/20/2018 06/01/2023 50,000.00 51,388.00 49,746.15 1,641.85 (253.85) N/A Cetera Investment Services Municipal Bonds 2.500% 3.181 % 12/20/2018 08/01/2023 35,000.00 35,633.15 34,320.05 1,313.10 (679.95) N/A Cetera Investment Services Municipal Bonds 3.400% 3.148% 12/20/2018 11/01/2023 125,000.00 128,655.00 126,376.25 2,278.75 1,376.25 N/A Cetera Investment Services Municipal Bonds 3.400% 3.148% 12/20/2018 11/01/2023 65,000.00 66,900.60 65,715.65 1,184.95 715.65 N/A Cetera Investment Services Municipal Bonds 5.290% 2.724% 04/18/2019 06/01/2023 260,000.00 285,643.80 291,059.96 (5,416.16) 31,059.96 N/A Cetera Investment Services Municipal Bonds 2.854% 3.173% 12/20/2018 02/01/2024 100,000.00 102,604.00 99,605.96 2,998.04 (394.04) N/A Cetera Investment Services Municipal Bonds 2.977% 3.246% 12/20/2018 03/15/2024 250,000.00 257,195.00 248,743.99 8,451.01 (1,256.01) N/A Cetera Investment Services Municipal Bonds 3.922% 3.429% 12/20/2018 12/01/2024 204,000.00 217,572.12 257,122.49 (39,550.37) 53,122.49 N/A Cetera Investment Services Municipal Bonds 5.742% 3.658% 04/11/2019 08/01/2024 430,000.00 475,197.30 555,382.50 (80,185.20) 125,382.50 N/A Cetera Investment Services Municipal Bonds 4.400% 3.221 % 04/11/2019 07/01/2025 500,000.00 539,525.00 539,101.11 423.89 39,101.11 07/01/2023 Cetera Investment Services Municipal Bonds 5.640% 3.007% 04/18/2019 08/15/2025 205,000.00 177,300.40 169,737.95 7,562.45 (35,262.05) N/A Cetera Investment Services Municipal Bonds 3.743% 2.740% 04/18/2019 09/15/2025 215,000.00 229,927.45 228,334.53 1,592.92 13,334.53 N/A Cetera Investment Services Municipal Bonds 3.379% 1.934% 08/19/2019 10/01/2025 310,000.00 325,546.50 339,739.18 (14,192.68) 29,739.18 N/A Cetera Investment Services Municipal Bonds 4.250% 3.258% 04/11/2019 01/01/2026 500,000.00 530,965.00 529,769.03 1,195.97 29,769.03 N/A Cetera Investment Services Municipal Bonds 6.690% 3.356% 04/18/2019 04/15/2026 60,000.00 50,273.40 47,545.20 2,728.20 (12,454.80) N/A Cetera Investment Services Municipal Bonds 3.250% 2.903% 04/18/2019 08/01/2026 500,000.00 516,925.00 514,790.69 2,134.31 14,790.69 N/A Cetera Investment Services Municipal Bonds 2.150% 2.203% 07/01/2019 12/01/2026 40,000.00 39,540.40 40,150.64 (610.24) 150.64 N/A Cetera Investment Services Municipal Bonds 2.350% 2.191 % 07/01/2019 12/01/2026 500,000.00 502,745.00 505,385.00 (2,640.00) 5,385.00 N/A Cetera Investment Services Municipal Bonds 2.375% 1.816% 09/04/2019 12/01/2026 90,000.00 89,255.70 93,395.70 (4,140.00) 3,395.70 N/A Cetera Investment Services Municipal Bonds 3.000% 1.991 % 08/19/2019 02/01/2027 50,000.00 52,228.50 53,551.00 (1,322.50) 3,551.00 N/A Cetera Investment Services Municipal Bonds 3.150% 2.034% 08/19/2019 03/15/2027 100,000.00 105,089.00 109,138.50 (4,049.50) 9,138.50 N/A Cetera Investment Services Municipal Bonds 3.332% 3.120% 04/18/2019 04/15/2027 500,000.00 528,620.00 507,783.94 20,836.06 7,783.94 N/A Cetera Investment Services Municipal Bonds 3.553% 2.289% 08/19/2019 05/01/2027 55,000.00 58,214.20 60,468.04 (2,253.84) 5,468.04 05/01/2026 Cetera Investment Services Municipal Bonds 3.865% 2.470% 08/19/2019 05/01/2027 55,000.00 58,840.10 60,986.48 (2,146.38) 5,986.48 05/01/2025 Cetera Investment Services Municipal Bonds 2.817% 2.817% 09/25/2019 10/01/2027 35,000.00 26,823.65 27,969.55 (1,145.90) (7,030.45) 05/01/2025 Cetera Investment Services Municipal Bonds 3.230% 1.828% 08/19/2019 05/15/2027 145,000.00 154,498.95 160,827.31 (6,328.36) 15,827.31 N/A Cetera Investment Services Municipal Bonds 3.270 % 2.141 % 08/19/2019 03/15/2028 155,000.00 163,774.55 60 468.04 103,306.51 (94,531.96) 09/15/2027 Cetera Investment Services Municipal Bonds 2.974% 2.574% 11/07/2019 04/01/2028 75,000.00 75,094.50 77,253.00 (2,158.50) 2,253.00 N/A Cetera Investment Services Municipal Bonds 3.553% 2.289% 08/19/2019 08/01/2028 500000.00 526,085.00 547,105.00 (21,020.00) 47,105.00 08/01/2027 Cetera Investment Services Municipal Bonds 3.000% 1.942% 08/19/2019 06/01/2029 115,000.00 121,061.65 125,961.80 (4,900.15) 10961.80 N/A Broker Total 74.3% 8,854,000.00 9,164,843.84 9,247,061.95 (86,876.93) 393,061.95 TOTAL INVESTMENTS 100.0% $ 11,998,000.00 $ 12,340,736.26 $ 12,391,061.95 $ (81,788.97) $ 393,061.95 Product Type 11/30/2019 Total Value % of Total 10/31/2019 Total Value % of Total Money Market $31,463.28 0.3% $95,075.44 0.8% CD's 1,848,995.46 15.0% 1,849,442.81 14.9% Government Bonds 1,300,092.50 10.5% 1,300,514.00 10.5% Municipal Bonds 9,160,185.02 74.2% 9,133,986.38 73.8% TOTAL $12.340.736.26 100.0% $12.379.018.63 100.0% MunicinaI Bonds Monthly Maturity Current Value % Change Less than 1 year 1-2 years $1,377,143.33 1,728,548.66 11.2% 14.0% ($63,612.16) (447.35) 2 - 3 years 1,382,660.50 11.2 % (421.50) 3 - 4 years 1,927,481.40 15.6 % 26 198.64 4 - 5 years 5+ years TOTAL 834,996.30 5,089,906.07 $12,340,736.26 6.8 % 41.2 % 100.0% ($38,282.37) Money Market t0D s I $6,000,000.00 snu Government Bonds 10.5% $5,000,000.00 $4,000,000.00 $3,000,000.00 $2,000,000.00 $1,000,000.00 $0.00 Less than 1-2 years 2-3 years 3-4years 4-5 years 5+years year ELECTRIC DIVISION Operating Revenue November 2019 CLASS AMOUNT KWH /KWH Street Lights $8.61 158 $0.05449 Electric Residential Service $410,282.55 3,864,043 $0.10618 All Electric Residential Service $26,274.51 265,476 $0.09897 Electric Small General Service $150,589.43 1,476,109 $0.10202 Electric Large General Service $551,298.01 5,955,740 $0.09257 Electric Large Industrial Service $659,889.84 8,256,000 $0.07993 Total $1,798,342.95 19,817,526 $0.09075 Power Adjustment $0.00464 Rate Without Power Adjustment $0.08611 Electric Division Year -to -Date M2019$A--t 02018$A--t ■2019KWH110 02018 KWH110 31,000,000 30,000,000 29,000,000 28,000,000 27,000,000 26,000,000 25,000,000 24,000,000 23,000,000 22,000,000 21,000,000 20,000,000 19,000,000 18,000,000 17,000,000 16,000,000 15,000,000 14,000,000 13,000,000 12,000,000 11,000,000 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Street Lights Residential All Elec. Small Gen. Large Gen. Large For Resale Total Resid. Srv. Srv. Industrial NOTE: Sales for resale includes capacity sales, market sales and Transalta sales. NATURAL GAS DIVISION Operating Revenue NOVEMBER 2019 CLASS AMOUNT MCF /$ MCF Residential $437,432.18 53,568 $8.16592 Commercial $353,999.86 45,004 $7.86596 Large Industrial $31,917.30 3,659 $8.72296 Large Industrial Contracts $343,413.37 91,250 $3.76343 Total $1,166,762.71 193,481 $6.03037 ® 2019 $ Amount 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Fuel Adjustment-$1.18000 Rate Without Fuel Adjustment $7.21037 Natural Gas Division Year -to -Date 0 2018 $ Amount ■ 2019 MCF 132018 MCF Gas Residential Gas Commercial Large Industrial Large Industrial Total Contracts Work Order Descriation 11708 Units 6 & 7 11901 Plant 1 Heating/Air Conditioning 11902 East Engine Room Shop Floor Epoxy 11903 Plant 1 Cooling Tower Upgrade 11904 Unit 8 Controls Upgrade 11905 Lube Oil and Glycol Maintenance Plant 1 11906 Replacement Hoist in East Engine Room 11907 Unit 1 Circuit Breaker Electric Production Materials Labor $ 14,369,702.00 $ - 10,000.00 2,000.00 35,000.00 80,000.00 270,000.00 35,000.00 40,000.00 10,000.00 30,000.00 $ 14,834,702.00 $ 47,000.00 Total Total Percentage Budaeted Actual Difference Completed $ 14,369,702.00 $ 15,617,406.72 $ 1,247,704.72 95% $ 12,000.00 - $ (12,000.00) $ 35,000.00 $ (35,000.00) $ 80,000.00 28,516.81 $ (51,483.19) 10% $ 305,000.00 59,299.11 $ (245,700.89) 10% $ 50,000.00 18,988.12 $ (31,011.88) 25% $ 30,000.00 16,526.00 $ (13,474.00) 50% $ - 37,043.95 $ 37,043.95 75% $ 14,881,702.00 $ 15,777,780.71 $ 896,078.71 Electric Distribution Work Total Total Percentage Order Description Materials Labor Budgeted Actual Difference Completed 21901 Pole Repair or Replacement 15,000.00 - 15,000.00 - $ (15,000.00) 21902 Station Equipment 10,000.00 10,000.00 4,050.71 $ (5,949.29) 25% 21903 Step Up Transformer Unit 3 100,000.00 5,000.00 105,000.00 940.94 $ (104,059.06) 5% 21904 Duct for Reconductor 15,000.00 65,000.00 80,000.00 93,466.03 $ 13,466.03 90% 21905 Century Court Apartments 20,000.00 15,000.00 35,000.00 9,965.60 $ (25,034.40) 10% 21906 Highfield Apartments 20,000.00 15,000.00 35,000.00 1,791.22 $ (33,208.78) 21907 Feeder 15 and 16 Reconductor 50,000.00 100,000.00 150,000.00 148,860.04 $ (1,139.96) 90% 21908 New Developments 50,000.00 50,000.00 93,528.45 $ 43,528.45 85% 21909 City Road Projects 50,000.00 20,000.00 70,000.00 26,065.60 $ (43,934.40) 50% 21910 Century Court Apartments 20,000.00 5,000.00 25,000.00 1,173.10 $ (23,826.90) 21911 Transformer Replacements 40,000.00 14,000.00 54,000.00 924.84 $ (53,075.16) 5% 21912 Transformer New Developments 50,000.00 - 50,000.00 1,708.33 $ (48,291.67) 5% 21913 Highfield Apartments 15,000.00 3,000.00 18,000.00 10,089.14 $ (7,910.86) 21914 Meters 30,000.00 30,000.00 640.00 $ (29,360.00) 21915 Hutchinson Substation Circuit Breaker - - _- 79,500.00 $ 79,500.00 100% $ 485,000.00 $ 242,000.00 $ 727,000.00 $ 472,704.00 $ (254,296.00) Administrative Work Order Description 51901 Replace #542 2008 Silverado 51902 Replace #573 2008 Super Duty Truck 51903 Replace #827 Tahoe 51904 Replace #651 51905 Replace Vehicle #623 Total Total Percentage Budgeted Actual Difference Comwleted 26,523.00 26,523.00 60,000.00 65,028.04 (5,028.04) 100% 30,000.00 - 30,000.00 38,192.00 31,118.21 7,073.79 100% 66,837.00 41,031.60 25,805.40 50% $ 221,552.00 $ 137,177.85 $ (84,374.15) Work Order Description 61901 Replace Regulators Station 2 61902 Misc Developments and Improvements 61903 5Th Ave (Lynn to Ontario) 61904 SCD Trunk Storm 61905 South Grade Corridor (Dale to Hwy 15) 61906 Clinton Ave SW (Harrington to Merrill) 61907 South Grade Road (School Road to Dale) 61908 Trunk Hwy 7 Pedestrian Trail Improvements 61909 Century Court Apartments 61910 Waller Drive (Feed to HTI) 61911 Isolated Main Replacement (btn Barley and Glenda) 61912 Regulator Station Improvements 61913 Service Lines 61914 Meters, AMI, and all Fittings 61915 Residential Regulators 61916 Trunk Hwy 15 State Improvement Project 61917 Industrial Metering and Regulation 61918 Pressure Monitors- AMI System, Laser Gas Detector Natural Gas Total Total Percentage Materials Labor Budgeted Actual Difference Completed $ 28,000.00 $ 2,000.00 $ 30,000.00 $ 37,619.59 $ 7,619.59 100% 100,000.00 25,000.00 125,000.00 49,667.88 $ (75,332.12) 20% 300,000.00 20,000.00 320,000.00 18,676.17 $ (301,323.83) 20% $ - 1,399.80 $ 1,399.80 20% 50,000.00 5,500.00 $ 55,500.00 976.55 $ (54,523.45) 20,000.00 2,750.00 $ 22,750.00 - $ (22,750.00) 5,000.00 2,000.00 $ 7,000.00 187.50 $ (6,812.50) 10,000.00 4,000.00 $ 14,000.00 - $ (14,000.00) 5,000.00 2,000.00 $ 7,000.00 7,417.83 $ 417.83 100% - - $ - 24,407.16 $ 24,407.16 75% 95,000.00 25,000.00 $ 120,000.00 - $ (120,000.00) 20,000.00 3,000.00 $ 23,000.00 - $ (23,000.00) 57,000.00 35,000.00 $ 92,000.00 75,730.57 $ (16,269.43) 75% 95,000.00 4,000.00 $ 99,000.00 89,549.40 $ (9,450.60) 75% 35,000.00 $ 35,000.00 - $ (35,000.00) 225,000.00 5,000.00 $ 230,000.00 10,311.92 $ (219,688.08) 5% 80,000.00 7,000.00 $ 87,000.00 12,656.43 $ (74,343.57) 5% 20,000.00 3,500.00 $ 23,500.00 - $ (23,500.00) $ 1,145,000.00 $ 145,750.00 $ 1,290,750.00 $ 328,600.80 $ (962,149.20) HUTCHINSON UTILITIES COMMISSION�1` Board Action Form �rMturscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: 2020 Electric & NG Operating Budgets & 5 Year Capital Improvement Program (CIP) Presenter: Jeremy Carter Agenda Item Type: Time Requested (Minutes): 10 New Business Attachments,: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Attached is the final 2020 operating budgets and 5 year (2020-2024) CIP for the Electric and Natural Gas Divisions. Prior to the November board meeting preliminary 2020 operating budgets and the 2020 CIP were sent out to staff and commission for review. At the November meeting on 11-27-19 a high level overview of the 2020 budgets were reviewed and the major changes budgeted from 2019 to 2020 were discussed in detail. Since that time, some minor additions have been made on the expense side of the 2020 operating budgets to reflect some additional costs for insurance ($9,532) and the new security system with a network switch ($30,000) that was originally budgeted for in 2019 but will not happen until 2020. On the CIP side for 2020, an additional $1000 has been added to the high pressure filter cleaning machine budget in the production area to reflect the final cost of the equipment. Management recommends the Commission approve the final 2020 Operating budgets and 5 - Year CIP Program (2020-2024). As is customary, the 5 - Year CIP changes from year to year and will reviewed and updated as needed moving into 2021. 0 BOARD ACTION REQUESTED: Approve 2020 Electric and Natural Gas Division Operating Budgets & 5 Yr. CIP Fiscal Impact: Included in current budget: No Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: COMBINED DIVISIONS (ELECTRIC & GAS) Dollar % change YEAR 2016 Actual 2017 Actual 2018 Actual 2019 Budget 2020 Budget Inc/(Decr.) 2019/2020 REVENUES: Customer Sales 34,802,435 36,117,108 36,572,180 34,285,018 34,319,116 34,098 0.10% Sales for Resale 1,931,859 2,171,853 3,071,099 2,951,500 3,007,250 55,750 1.89% Power Cost Adjustments - - - 2,000,000 1,500,000 (500,000) -25.00% NU Transportation 831,969 902,042 940,990 885,452 898,640 13,188 1.49% Electric Division Transfer 647,166 651,699 656,366 659,783 665,283 5,500 0.83% Other Revenues 991,870 818,464 711,576 523,664 499,663 (24,001) -4.58% Interest Earnings 8,372 145,409 408,996 250,000 350,000 100,000 40.00% TOTAL REVENUES: $ 39,213,671 $ 40,806,575 $ 42,361,206 $ 41,555,417 $ 41,239,952 $ (315,465) -0.76% EXPENSES: Personnel Costs 5,988,510 5,743,040 5,770,263 6,601,607 6,871,803 270,196 4.1% Purchased Power/Gas 19,219,353 21,141,107 20,717,620 19,155,179 19,252,477 97,298 0.5% Transmission 2,215,298 2,462,733 2,454,965 3,380,000 2,680,000 (700,000) -20.7% Generator Fuel/Chemicals 1,191,997 890,113 1,126,228 1,057,850 730,099 (327,751) -31.0% Depreciation 3,822,655 3,852,675 3,804,484 3,925,000 3,925,000 - 0.0% Transfers (Electric/City) 1,807,887 1,700,646 1,907,835 2,261,207 2,532,475 271,268 12.0% Operating Expense 2,320,686 2,603,863 2,372,815 2,948,518 2,776,166 (172,352) -5.8% Debt Interest 807,818 840,817 1,231,469 1,168,007 1,074,507 (93,500) -8.0% TOTAL EXPENSES: $ 37,374,204 $ 39,234,994 $ 39,385,678 $ 40,497,368 $ 39,842,527 $ (654,841) -1.62% ELECTRIC DIVISION Dollar % change YEAR 2016 Actual 2017 Actual 2018 Actual 2019 Budget 2020 Budget Inc/(Decr.) 2019/2020 REVENUES: Residential 5,269,260 5,341,820 5,601,482 5,196,549 5,378,745 182,196 3.51% Small General 1,730,236 1,814,703 1,934,682 1,685,324 1,812,406 127,082 7.54% Large General 6,837,604 7,235,331 7,589,242 7,026,617 7,311,058 284,441 4.05% Industrial 10,941,617 10,778,629 10,218,577 10,062,656 9,483,527 (579,129) -5.76% Power Cost Adjustments - - - 2,000,000 1,500,000 (500,000) -25.00% Street Lighting 144,641 147,484 147,470 147,384 141,712 (5,672) -3.85% Sales for Resale 1,931,859 2,171,853 3,071,099 2,951,500 3,007,250 55,750 1.89% Other Revenues 452,938 500,576 324,153 236,956 212,955 (24,001) -10.13% Interest Earnings 4,186 78,873 204,498 125,000 175,000 50,000 40.00% TOTAL REVENUES: $ 27,312,341 $ 28,069,269 $ 29,091,203 $ 29,431,986 $ 29,022,653 (409,333) -1.39% EXPENSES: Personnel Costs 4,700,261 4,555,425 4,560,613 4,908,578 5,018,450 109,872 2.24% Purchased Power 13,521,486 14,257,952 14,633,533 13,640,000 13,480,332 (159,668) -1.17% Transmission 2,215,298 2,462,733 2,454,965 3,380,000 2,680,000 (700,000) -20.71% Generator Fuel/Chemicals 1,191,997 890,113 1,126,228 1,057,850 730,099 (327,751) -30.98% Depreciation 2,820,447 2,830,636 2,770,697 2,900,000 2,900,000 - 0.00% Transfers (Electric/City) 1,401,635 1,333,515 1,538,693 1,766,062 1,958,826 192,764 10.91% Operating Expense 1,636,166 1,905,411 1,679,830 1,887,804 1,807,028 (80,776) -4.28% Debt Interest 30,185 110,801 562,765 558,657 533,657 (25,000) -4.48% TOTAL EXPENSES: $ 27,517,475 $ 28,346,586 $ 29,327,323 $ 30,098,951 $ 29,108,392 (990p559) -3.29% GAS DIVISION Dollar % change YEAR 2016 Actual 2017 Actual 2018 Actual 2019 Budget 2020 Budget Inc/(Decr.) 2019/2020 REVENUES: Residential 3,839,034 3,937,048 4,139,639 3,885,204 3,870,540 (14,664) -0.38% Commercial 3,284,351 3,566,209 3,497,097 3,374,651 3,318,341 (56,310) -1.67% Contracted Industrial 2,755,692 3,295,884 3,443,991 2,906,633 3,002,787 96,154 3.31% NU/3rd Party Agreements 831,969 902,042 940,990 885,452 898,640 13,188 1.49% Electric Division Transfer 647,166 651,699 656,366 659,783 665,283 5,500 0.83% Other Revenues 538,932 317,887 387,423 286,708 286,708 - 0.00% Interest Earnings 4,186 66,536 204,498 125,000 175,000 50,000 40.00% TOTAL REVENUES: $ 11,901,330 $ 12,737,306 $ 13,270,003 $ 12,123,431 $ 12,217,299 93,868 0.77% EXPENSES: Personnel Costs 1,288,249 1,187,615 1,209,650 1,693,029 1,853,353 160,324 9.47% Purchased Gas 5,697,867 6,883,154 6,084,086 5,515,179 5,772,145 256,966 4.66% Depreciation 1,002,208 1,022,039 1,033,788 1,025,000 1,025,000 - 0.00% Transfers (City) 406,252 367,131 369,142 495,145 573,649 78,504 15.85% Operating Expense 684,520 698,452 692,985 1,060,714 969,138 (91,576) -8.63% Debt Interest 777,633 730,016 668,704 609,350 540,850 (68,500) -11.24% TOTAL EXPENSES: $ 9,856,729 $ 10,888,407 $ 10,058,355 $ 10,398,417 $ 10,734,135 335,718 3.23% I Detailed Income Statement I Combined Divisions (Electric & Gasl OPERATING REVENUES Electric Energy Sales Natural Gas Sales Other Operating Revenues $ 26,855,217 $ 27,489,820 $ 28,562,552 ''' $ 27,844,389 $ 29,070,030 $ 28,634,697 $ 9,879,077 $ 10,799,141 $ 11,080,727 $ 10,438,416 $ 10,166,488 $ 10,191,668 $ 1,772,429 $ 1,746,653 $ 1,849,854 $ 1,676,006 $ 1,816,835 $ 1,811,523 Total Operating Revenues g OPERATING EXPENSES Production: Operations $ Maintenance Operations $ Purchased Power/Gas $ Other Power Supply $ Transmission: Operations $ Maintenance $ Distribution Expense: Operations $ Maintenance $ Customer Accounts Expense $ Sales Expense $ Administrative & General $ Depreciation $ Contribution to the City of Hutchinson $ Total Operating Expenses $ Operating Income (Loss) $ NONOPERATING REVENUES (EXPENSES) Interest Income $ Merchandise & Contract Work, Net $ Miscellaneous Income $ Gain (Loss) on Disposal of Assets $ Bond Service Fees $ Bond Premium $ Prior Period Adjustment $ Interest Expense - Customer Deposits $ Interest Expense - Bonds $ Total Nonoperating Revenus (Expenses) $ Net Income (Loss) $ $ 40,035,614 $ 41,493,133 $ 39,958,811 $ 41,053,353 $ 2,936,626 $ 2,670,071 $ 3,510,634 450,663 $ 401,730 $ 409,983 19,219,353 $ 21,141,107 $ 20,717,620 368,091 $ 376,398 $ 543,339 2,474,137 $ 2,747,937 $ 2,786,536 21,676 $ 86,959 $ 28,686 1,056,252 $ 1,013,466 $ 1,635,183 494,158 $ 504,138 $ 577,200 448,412 $ 480,195 $ 421,909 392,888 $ 324,749 $ 412,606 3,460,193 $ 3,256,490 $ 1,711,878 3,822,399 $ 3,852,419 $ 3,804,484 1,305,256 $ 1,196,331 $ 1,398,853 6,450,104 $ 38,051,989 $ 37,958,911 2,056,619 $ 1,983, 625 $ 3,534,222 8,372 $ 145,409 $ 408,996 4,990 $ 48,771 $ 12,512 354,499 $ 160,159 $ 105,444 40,758 $ 62,027 $ 17,853 (900) $ (174,964) $ (925) 185,608 $ 191,185 $ 219,065 - $ - $ (83,203) (2,661) $ (3,811) $ (6,967) (807,818) $ (840,818) $ (1,231,469) (217.1521 $ (412.0431 $ (558.6941 $ 3,459,066 $ 3,669,045 $ 3,315,441 $ 573,881 $ 742,459 $ 601,351 $ 19,600,000 $ 19,155,179 $ 19,252,477 $ 441,157 $ 246,288 $ 242,317 $ 2,960,765 $ 3,714,151 $ 3,359,520 $ 63,897 $ 65,792 $ 74,938 $ 1,945,329 $ 2,016,834 $ 2,300,811 $ 764,058 $ 859,065 $ 795,121 $ 454,357 $ 471,189 $ 481,650 $ 509,631 $ 495,313 $ 486,232 $ 1,759,162 $ 2,239,930 $ 2,032,870 $ 3,908,000 $ 3,925,000 $ 3,925,000 $ 1,398,853 $ 1,675,116 $ 1,867,192 $ 37,838,156 $ 39,275,361 $ 38,734,920 $ 2,120, 655 $ 1,777, 992 $ 1,902,968 $ 100,000 $ 250,000 $ 350,000 $ (24,500) $ (18,500) $ 1,500 $ (2,400) $ (2,400) $ (1,000) $ 185,608 $ 219,064 $ 219,064 $ (100) $ (100) $ (100) $ (1.280.863) $ M168.0071 $ (1.075.007) COGS $ 25,470,546 $ 27,424,201 $ 27,996,798 $ 27,098,766 $ 27,592,914 $ 26,846,044 Gross Profit $ 13,036,177 $ 12,611,413 $ 13,496,336 $ 12,860,045 $ 13,460,439 $ 13,791,844 Gross Margin 34% 32% 33% 32% 33% 34% Operating Margin (%) 5% 5% 9% 5% 4% 5% Net Income (%) of Operating Sales 5% 4% 7% 2.7% 2.6% 3.4% N.I. (%) of Operating Sales (after cap labor) - - - 4.7% 3.7% 4.2% 2020 COMBINED INC. STATEMENT 2020 Net Income $ 1,397,425 Capitalized Labor - Production $ 10,000 Capitalized Labor - Distribution $ 218,000 Capitalized Labor- Natural Gas $ 73,750 Combined INC STMNT $ 1,699,175 2020 COMBINED CASH FLOW STATEMENT 2020 Net Income $ 1,397,425 Depreciation $ 3,925,000 2020Tot@I Cap Exp $ (1,659,700) Principal Debt Payments $ (2,100,000) 2019/20 SOE Proceeds $ 188,000 Combined Cash Flow $ 1,750,725 2020 Cap Ex (As necessary) $ 116,000 Detailed Income Statement Electric Division OPERATING REVENUES Energy Sales Revenue Sales - Electric Energy (440, 442, 444) Power Cost Adjustments Other Energy Sales (447) Total Energy Sales Revenue (440, 442, 444, 447) Revenue From Other Sources Revenue From Other Sources (450,451) Security Lights (454.01) Pole Rental (454.02, 454.03) Total Revenue From Other Sources (450, 451, 454) TOTAL OPERATING REVENUES OPERATING EXPENSES Production Operations Operation Supervison & Engineering (546) Fuel (547) Operating Supplies and Expense (550) Total Production Operations (546, 547, 550) Maintenance Operations Structures (554) Generating Units (554) Other Equipment (554) Total Maintenance Operations (554) Other Power Supply Expense Purchased Power (555) System Control & Load Dispatch (556) Engineering Services (557) Total Other Power Supply Expense (555, 556, 557) Transmission Expense Transmission Expense Operation (560) Transmission Expense Operation (565) Transmission Expense Operation (567) Transmission Expense Maintenance (574) Total Transmission Expense (560, 565, 567, 574) Distribution Expense: Distribution Operation (580, 581, 586, 588, 589) Distribution Maintenance (592, 594, 595, 596, 598) Total Distribution Expense (580 ,581, 586, 588, 589, 592, 594, 595, 596, 598) $ 24,923,358 $ 25,317,967 $ 23,806,052 $ 24,025,189 $ 24,118,530 $ 24,127,447 $ - $ - $ 1,685,401 $ 1,300,000 $ 2,000,000 $ 1,500,000 $ 1,931,859 $ 2,171,853 $ 3,071,099 $ 2,519,200 $ 2,951,500 $ 3,007,250 $ 26,855,217 $ 27,489,820 $ 28,562,552 $ 27,844,389 $ 29,070,030 $ 28,634,697 $ 282,041 $ 155,878 $ 171,831 $ 198,800 $ 193,500 $ 169,500 $ 11,253 $ 11,280 $ 11,005 $ 10,000 $ 10,000 $ 10,000 $ 293,294 $ 167,158 $ 182,836 $ 27,148,511 $ 27,656,978 $ 28,745,388 $ 208,800 $ 203,500 $ 179,500 $ 28,053,189 $ 29,273,530 $ 28,814,197 $ 1,065,718 $ 1,080,868 $ 1,689,922 $ 1,784,518 $ 1,837,312 $ 1,788,183 $ 1,721,375 $ 1,468,148 $ 1,710,866 $ 1,519,048 $ 1,686,733 $ 1,364,758 $ 149,533 $ 121,056 $ 109,845 $ 155,500 $ 145,000 $ 162,500 $ 2,936,626 $ 2,670,071 $ 3,510,634 $ 3,459,066 $ 3,669,045 $ 3,315,441 $ 9,160 $ 343,228 $ 98,275 $ 8,938 $ 285,527 $ 107,265 $ 9,583 $ 293,927 $ 106,472 $ $ $ 10,000 523,881 40,000 $ 10,000 $ 692,459 $ 40,000 $ 10,000 $ 551,351 $ 40,000 $ 450,663 $ 401,730 $ 409,983 $ 573,881 $ 742,459 $ 601,351 $ 13,521,486 $ 14,257,952 $ 14,633,533 $ 14,000,000 $ 13,640,000 $ 13,480,332 $ 368,091 $ 376,398 $ 543,339 $ 441,157 $ 246,288 $ 242,317 $ 13,889,577 $ 14,634,350 $ 15,176,872 $ 14,441,157 $ 13,886,288 $ 13,722,649 $ 144,105 $ 162,394 $ 169,311 $ 145,000 $ 145,000 $ 165,000 $ 2,215,298 $ 2,462,733 $ 2,454,965 $ 2,630,000 $ 3,380,000 $ 2,680,000 $ - $ - $ 11,028 $ 10,000 $ - $ - $ 16,956 $ 82,311 $ 27,843 $ 52,155 $ 54,014 $ 69,688 $ 2,376,359 $ 2,707,438 $ 2,663,147 $ 2,837,155 $ 3,579,014 $ 2,914,688 $ 606,292 $ 547,997 $ 947,724 $ 1,162,449 $ 1,227,878 $ 1,347,183 $ 363,615 $ 345,417 $ 403,836 $ 357,335 $ 384,411 $ 414,851 $ 969,907 $ 893,414 $ 1,351,560 $ 1,519,784 $ 1,612,289 $ 1,762,034 Customer Service and Collection Meter Reading (902) $ 26,057 $ 51,215 $ 19,421 $ 23,299 $ 24,401 $ 25,267 Collection Expense (903) $ 160,532 $ 151,657 $ 155,143 $ 167,649 $ 170,303 $ 170,182 Bad Debt Write offs (904) $ 18,634 $ 30,612 $ (4,247) $ 5,500 $ 5,500 $ 5,500 Customer Services (906) $ 41,404 $ 41,557 $ 55,986 $ 59,720 $ 63,083 $ 66,460 $ 256,168 $ 263,287 $ 267,408 Total Customer Service and Collection (902, 903, 904, 906) $ 246,627 $ 275,041 $ 226,303 Sales Expense Supervison (911) $ - $ - $ - $ - $ - $ - Misc. Selling Expense (916) $ 294,666 $ 231,090 $ 286,184 $ 346,442 $ 340,421 $ 333,948 $ 346,442 $ 340,421 $ 333,948 Total Sales Expense (911, 916) $ 294,666 $ 231,090 $ 286,184 Detailed Income Statement Electric Division Administrative and General Adminstrative and General Labor (920) Office Supplies and Expenses (921) Outside Services (923) Property Insurance (924) Employee Pension & Benefits (926) Regulatory Expense (928) Misc. General Expense (930) Maint. Of General Plant (935) Total Administrative and General (920, 921, 923, 924, 926, 928, 930, 935) Other Expenses Depreciation Expense (403) Payment in Lieu of Taxes (408) Contribution To City - Roadway Lighting (408) Total Other Expenses (403, 408) TOTAL OPERATING EXPENSES OPERATING INCOME (LOSS) NONOPERATING REVENUES/(EXPENSES) Merchandise & Contract Work, Net Interest Income M isc. Income Interest - Customer Deposits Bond Service Fees Interest Expense - 2013B Bonds Interest Expense - 2017B Bonds Bond Premium Gain (Loss) On Disposal Prior Period Adjustment TOTAL NONOPERATING REVENUES/(EXPENSES) NET INCOME COGS Gross Profit Gross Margin Operating Margin (%) Net Income (%) of Operating Sales Net Income (%) of Operating Sales (after cap labor) $ 433,081 $ 427,182 $ 454,453 $ 274,966 $ 362,898 $ 257,839 $ 116,859 $ 118,128 $ 120,425 $ 77,427 $ 111,072 $ 114,394 $ 1,497,078 $ 1,296,129 $ 114,255 $ 18,084 $ 20,912 $ 21,573 $ 68,225 $ 77,534 $ 82,658 $ 36,585 $ 39,133 $ 45,218 $ 2,522,305 $ 2,452,988 $ 1,210,816 $ 449,079 $ 464,333 $ 486,404 $ 277,400 $ 347,031 $ 281,545 $ 80,306 $ 99,306 $ 99,306 $ 86,000 $ 89,000 $ 193,177 $ 178,250 $ 193,428 $ 206,431 $ 30,000 $ 25,000 $ 20,000 $ 102,836 $ 94,836 $ 99,836 $ 46,938 $ 51,186 $ 74,975 $ 1,250,809 $ 1,364,120 $ 1,461,674 $ 2,820,447 $ 2,830,636 $ 2,770,697 $ 2,900,000 $ 2,900,000 $ 2,900,000 $ 754,469 $ 681,816 $ 882,327 $ 882,327 $ 1,106,279 $ 1,293,543 $ 144,535 $ 147,384 $ 147,384 $ 147,384 $ 73,692 $ - $ 3,719,451 $ 3,659,836 $ 3,800,408 $ 27,406,181 $ 27,925,958 $ 28,635,906 $ (257,670) $ (268,980) $ 109,481 $ (24,216) $ 5,171 $ (36,559) $ 4,186 $ 78,873 $ 204,498 $ 83,272 $ 142,013 $ 71,834 $ - $ (2,499) $ (4,528) $ (900) $ (174,964) $ (925) $ (30,185) $ (20,248) $ - $ $ (90,553) $ (562,765) $ $ 5,576 $ 33,457 $ 20,379 $ 48,295 $ 11,789 $ - $ - $ (62,402) $ 52,536 $ (8,337) $ (345,601) $ 3,929,711 $ 4,079,971 $ 4,193,543 $ 28,614,173 $ 29,536,894 $ 28,572,735 $ (560,984) $ (263,364) $ 241,462 $ (1,000) $ (1,000) $ (1,000) $ 50,000 $ 125,000 $ 175,000 $ (2,400) $ (2,400) $ (1,000) $ (606,763) $ (558,657) $ (533,657) $ $ 33,456 $ 33,456 $ (560,163) $ (403,601) $ (327,201) $ (205,134) $ (277,317) $ (236,120) II $ (1,121,147) $ (666,965) $ (85,739) $ 19,653,225 $ 20,413,589 $ 21,760,635 $ 21,311,259 $ 21,876,806 $ 20,554,129 $ 7,495,286 $ 7,243,389 $ 6,984,752 $ 6,741,930 $ 7,396,724 $ 8,260,068 27.6% 26.2% 24.3% 24.0% 25.3% 28.7% -0.9% -1.0% 0.4% -2.0% -0.9% 0.8% -0.8% -1.0% -0.8% -4.0% -2.3% -0.3% -1.3% -1.3% 0.5% NET INCOME 2020 Net Income $ (85,739) Cap. Labor- Production $ 10,000 Cap. Labor- Distribution $ 218,000 2020 Net Income $ 142,261 CASH FLOW STATEMENT 2020 Net Income $ (85,739) Depreciation $ 2,900,000 2017E Principal $ (645,000) 2020 Cap Exp $ (868,000) 2019/20 SOE Proceeds $ 155,000 2020 Electric Cash Flow $ 1,456,261 2020 Cap Exp (As necessary)��/ Detailed Income Statement Gas Division OPERATING REVENUES Energy Sales Revenue Sales - Natural Gas --Retail Contract Sales to Large Customers (Includes 3M & HTI transport) New Ulm, HCP, & UFC Transportation Transportation --Electric Division Total Energy Sales Revenue (440, 442, 444, 447) Revenue From Other Sources Revenue From Other Sources (450,451) Total Revenue From Other Sources (450, 451, 454) TOTAL OPERATING REVENUES OPERATING EXPENSES Purchased Gas Purchased Gas for Retail (807) Contract Gas for Large Customer Total Purchased Gas Transmission Gas Transmission System Control Operations (851) Gas Transmission Operations (856) Gas Transmission Maintenance (863) Total Transmission (851, 856, 863) Distribution Operations Supervision and Engineering (870) Mains and Services (874) Meters (878) Misc. (880) Total Distribution Operation (870, 874, 878, 880) Distribution Maintenance Lines --Services and Mains (892) Meters and House Regulators (893) Maintenance of Other Plant (895) Total Distribution Maintenance (892, 893, 895) Customer Service and Collection Meter Reading (902) Collection Expense (903) Bad Debt Write offs (904) Customer Services (906) Total Customer Service and Collection (902, 903, 904, 906) Sales Expense Supervison (911) Misc. Selling Expense (916) Total Sales Expense (911, 916) Administrative and General Adminstrative and General Labor (920) Office Supplies and Expenses (921) Outside Services (923) Property Insurance (924) Employee Pension & Benefits (926) Regulatory Expense (928) Misc. General Expense (930) Maint. Of General Plant (935) Total Administrative and General (920, 921, 923, 924, 926, 928, 930, 935) $ 7,123,385 $ 7,503,257 $ 7,636,736 $ 7,688,416 $ 7,259,855 $ 7,188,881 $ 2,755,692 $ 3,295,884 $ 3,443,991 ,;', $ 2,750,000 $ 2,906,633 $ 3,002,787 $ 831,969 $ 902,042 $ 940,990 $ 739,440 $ 885,452 $ 898,640 $ 647,166 $ 651,699 $ 656,366 $ 656,366 $ 659,783 $ 665,283 $ 11,358,212 $ 12,352,883 $ 12,678,083 $ 11,834,222 $ 11,711,723 $ 11,755,591 $ - $ 25,753 $ 69,663 $ 71,400 $ 68,100 $ 68,100 $ - $ 25,753 $ 69,663 $ 11,358,212 $ 12,378,636 $ 12,747,746 $ 71,400 $ 68,100 $ 68,100 $ 11,905,622 $ 11,779,823 $ 11,823,691 $ 3,730,312 $ 4,272,140 $ 3,579,198 $ 3,300,000 $ 3,301,453 $ 3,557,453 $ 1,967,555 $ 2,611,014 $ 2,504,889 $ 2,300,000 $ 2,213,726 $ 2,214,692 $ 5,697,867 $ 6,883,154 $ 6,084,086 $ 5,600,000 $ 5,515,179 $ 5,772,145 $ - $ - $ - $ - $ - $ 264,102 $ 114,734 $ 122,810 $ 151,232 $ 175,765 $ 189,151 $ 250,417 $ 4,720 $ 4,648 $ 843 $ 11,742 $ 11,778 $ 5,250 $ 119,454 $ 127,458 $ 152,076 $ 187,507 $ 200,929 $ 519,770 $ 164,821 $ 160,609 $ 391,213 $ 440,517 $ 478,898 $ 518,685 $ 127,199 $ 143,315 $ 103,422 ,;', $ 192,670 $ 161,748 $ 207,000 $ 966 $ 19,765 $ 18,415 $ 872 $ 26,000 $ 29,137 $ 156,974 $ 141,781 $ 174,409 $ 148,821 $ 122,310 $ 198,806 $ 449,960 $ 465,470 $ 687,459 $ 782,880 $ 788,956 $ 953,628 $ 101,887 $ 116,256 $ 110,325 $ 179,698 $ 235,723 $ 194,516 $ 641 $ 1,412 $ - $ 25,266 $ 25,769 $ 25,944 $ 28,015 $ 41,053 $ 63,039 $ 201,759 $ 213,162 $ 159,810 $ 130,543 $ 158,721 $ 173,364 $ 406,723 $ 474,654 $ 380,270 $ 21,319 $ 41,663 $ 15,136 $ 19,062 $ 19,965 $ 20,672 $ 131,344 $ 125,156 $ 125,679 ,;', $ 125,766 $ 146,824 $ 149,694 $ 15,246 $ 4,333 $ 8,983 „' $ 4,500 $ 4,500 $ 4,500 $ 33,876 $ 34,001 $ 45,808 $ 48,861 $ 36,613 $ 39,376 $ 201,785 $ 205,154 $ 195,606 $ 198,189 $ 207,902 $ 214,242 $ 98,222 $ 93,659 $ 126,422 $ 163,189 $ 154,892 $ 152,284 $ 98,222 $ 93,659 $ 126,422 $ 163,189 $ 154,892 $ 152,284 $ 144,361 $ 143,981 $ 154,594 $ 150,184 $ 323,341 $ 162,134 $ 91,656 $ 120,613 $ 84,274 ,;' $ 90,800 $ 162,860 $ 90,310 $ 38,953 $ 46,743 $ 51,315 ,;', $ 26,769 $ 36,769 $ 36,769 $ 63,349 $ 30,723 $ 32,870 $ 59,000 $ 76,225 $ 49,399 $ 499,026 $ 354,444 $ 54,889 $ 61,750 $ 145,533 $ 73,227 $ 14,796 $ 16,097 $ 35,313 ,;', $ 20,000 $ 20,000 $ 40,000 $ 55,813 $ 60,977 $ 55,049 „' $ 68,558 $ 68,558 $ 64,558 $ 29,934 $ 29,923 $ 32,758 $ 31,292 $ 42,524 $ 54,800 $ 937,888 $ 803,501 $ 501,062 $ 508,353 $ 875,810 $ 571,197 Other Expenses Depreciation Expense (403) Payment in Lieu of Taxes (408) Total Other Expenses (403, 408) TOTAL OPERATING EXPENSES OPERATING INCOME (LOSS) NONOPERATING REVENUES/(EXPENSES) Merchandise & Contract Work, Net Interest Income Misc. Income Bond Premium Interest Expense - Bonds Interest Expense - Customer Deposits Gain (Loss) On Disposal Prior Period Adjustment TOTAL NONOPERATING REVENUES/(EXPENSES) NET INCOME COGS Gross Profit Gross Margin Operating Margin (%) Net Income (%) of Operating Sales Net Income (%) of Operating Sales (after cap labor) Detailed Income Statement Gas Division $ 1,001,952 $ 1,021,783 $ 1,033,788 $ 1,008,000 $ 1,025,000 $ 1,025,000 $ 406,252 $ 367,131 $ 369,142 $ 369,142 $ 495,145 $ 573,649 $ 1,408,204 $ 1,388,914 $ 1,402,930 $ 1,377,142 $ 1,520,145 $ 1,598,649 $ 9,043,923 $ 10,126,031 $ 9,323,005 $ 9,223,983 $ 9,738,467 $ 10,162,185 $ 2,314,289 $ 2,252,605 $ 3,424,741 ,' $ 2,681,639 $ 2,041,356 $ 1,661,506 $ 29,206 $ 43,600 $ 49,071 $ 4,186 $ 66,536 $ 204,498 271,227 $ 18,146 $ 33,610 $ 185,608 $ 185,608 $ 185,608 $ (777,633) $ (730,017) $ (668,704) $ (2,661) $ (1,312) $ (2,439)'' $ 20,379 $ 13,732 $ 6,063 $ - $ - $ (20,801) $ (23,500) $ (17,500) $ 2,500 $ 50,000 $ 125,000 $ 175,000 $ 185,608 $ 185,608 $ 185,608 $ (674,100) $ (609,350) $ (541,350) $ (100) $ (100) $ (100) $ (269,688) $ (403,706) $ (213,093) $ (462,092) $ (316,342) $ (178,342) $ 2,044,601 $ 1,848,899 $ 3,211,648 $ 2,219,547 $ 1,725,014 $ 1,483,164 $ 5,817,321 $ 7,010,612 $ 6,236,162 $ 5,787,507 $ 5,716,108 $ 6,291,915 $ 5,540,891 $ 5,368,024 $ 6,511,583 $ 6,118,115 $ 6,063,715 $ 5,531,776 49% 43% 51% 51% 51% 47% 20% 18% 27% 23% 17% 14% 18% 15% 25% 19% 15% 13% - - - 17% 20% 13% NET INCOME 2020 Net Income $ 1,483,164 Cap. Labor- Nat. Gas $ 73,750 2020 Net Income $ 1,556,914 CASH FLOW STATEMENT 2020 Net Income $ 1,483,164 Depreciation $ 1,025,000 2020 Cap Exp $ (791,700) 2012A Principal $ (1,455,000) 2019/20 SIDE Proceeds $ 33,000 2020 Cash Flow $ 294,464 2020 Cap Exp (As necessary)�/ Hutchinson Utilities Commission Capital Improvement Plan 2020 thm 2024 PROJECTS BY DEPARTMENT Department Project # Priority 2020 2021 2022 2023 2024 Total Administration Electric Vehicle 827 3 40,000 40,000 Administration Total 40,000 40,000 Electric - Distribution Dodge Ram 1500 226E 2 27,318 27,318 International 4900 w/Altec 255E 3 202,592 202,592 Vactron Trailer 270E 1 63,654 63,654 Vactron Drill 270E- 1 1 148,526 148,526 Station Equipment 362-20-1 2 10,000 10,000 Step Up Transformer - Unit #3 362-20-2 2 7,000 7,000 Station Equipment 362-21-1 2 10,000 10,000 Station Equipment 362-22-1 2 10,000 10,000 Station Equipment 362-23-1 2 10,000 10,000 Station Equipment 362-24-1 2 10,000 10,000 Duct Installation 366-20-1 3 15,000 15,000 Duct Installation 366-21-1 3 15,000 15,000 Duct Installation 366-22-1 3 15,000 15,000 Duct Installation 366-23-1 3 15,000 15,000 Duct Installation 366-24-1 3 15,000 15,000 Fdr #12A Reconductor 367-20-1 2 30,000 30,000 Fdr #15-16 Reconductor 367-20-2 2 35,000 35,000 Civil Air Patrol Project 367-20-3 2 7,000 7,000 Century Ct. Apartments - 2nd Addition 367-20-4 2 10,000 10,000 City Road Projects 367-20-5 2 10,000 10,000 New Developments 367-20-6 6 51,000 51,000 New Developments 367-21-1 6 51,000 51,000 Fdr # 14 Reconductor 367-21-2 2 35,000 35,000 Energy Park 367-21-3 2 75,000 75,000 New Developments 367-22-1 6 51,000 51,000 Fdr #22 Loop 367-22-2 3 60,000 60,000 New Developments 367-23-1 6 51,000 51,000 New Developments 367-24-1 6 51,000 51,000 Transformer Replacement 368-20-1 1 40,000 40,000 Transformers - New Developments 368-20-2 6 50,000 50,000 Fdr #12A Reconductor 368-20-3 6 15,000 15,000 EV Charging Station Transformer 368-20-4 6 10,000 10,000 Century Ct. Apartments - 2nd Addition 368-20-5 2 15,000 15,000 Civil Air Patrol 368-20-6 2 4,000 4,000 Transformer Replacement 368-21-1 1 40,000 40,000 Transformers - New Developments 368-21-2 6 50,000 50,000 Transformer Replacement 368-22-1 1 40,000 40,000 Transformers - New Development 368-22-2 6 50,000 50,000 Transformer Replacement 368-23-1 1 40,000 40,000 Transformers - New Development 368-23-2 6 50,000 50,000 Transformer Replacement 368-24-1 1 40,000 40,000 Produced Using the Plan -It Capital Planning Soffware Page 1 Tuesday, December 10, 2019 Department Project # Priority 2020 2021 2022 2023 2024 Total Transformers - New Development 368-24-2 6 50,000 50,000 Meters 370-20-1 2 30,000 30,000 Meters 370-21-1 2 30,000 30,000 Meters 370-22-1 2 30,000 30,000 Meters 370-23-1 2 30,000 30,000 Meters 370-24-1 2 30,000 30,000 EV Fast Charger 394-20-1 3 75,000 75,000 Level 2 Charger 394-20-2 3 8,000 8,000 Ford F350 Super Duty Service Truck 574E 1 65,000 65,000 Dodge Dakota 4x4 995E 2 27,318 27,318 John Deere 310 Backhoe TBD - 2 1 110,000 110,000 Single Phase Wire Trailer TBD - 6 2 11,000 11,000 Electric - Distribution Total 608,000 518,180 310,636 398,592 196,000 2,031,408 Electric - Production GMC Sierra 4WD Ext Cab 181E 3 28,920 28,920 Tiling North Side of Plant 1 341-20-1 3 50,000 50,000 Side Stream Filter Bldg Replacement - unit 1 341-21-1 3 150,000 150,000 Roof Installation - Old Unit 8 Bldg 341-21-2 3 30,000 30,000 Asphalt Replacement - Plant 2 341-22-1 3 150,000 150,000 Install Asphalt at Plant 1 341-23-1 3 150,000 150,000 East Engine room/Floor Epoxy 343-20-1 3 35,000 35,000 Scrapping Out Unit 8 344-21-1 2 30,000 30,000 Unit #1 Hot Section Overhaul 344-22-1 3 700,000 700,000 (2) Instrument Air Compressors 346-20-1 2 45,000 45,000 Cylinder Head Tools for Unit 5 346-20-2 1 15,000 15,000 Metric Tools - Units 5,647 346-20-3 1 25,000 25,000 High Pressure Filter Cleaning Machine 346-20-4 1 11,000 11,000 Starting Air Compressor for units 5,6,&7 346-20-5 1 45,000 45,000 Auxillary Boilder Replacement - Unit 1 346-21-1 2 200,000 200,000 Plant 1 Cooling Tower Drain Valves 346-21-2 2 50,000 50,000 Pressure Calibration Machine 346-21-3 2 15,000 15,000 Chevy Silverado 542 3 30,000 30,000 Chevy Silverado 990 3 30,000 30,000 Electric - Production Total 286,000 475,000 850,000 150,000 28,920 1,789,920 Electric - Transmission Engineering Transmission Loop HTI 353-22-1 3 75,000 75,000 Pole Repair or Replacement 354-20 6 15,000 15,000 Pole Repair or Replacement 354-21 6 15,000 15,000 Pole Repair or Replacement 354-22 6 15,000 15,000 Pole Repair or Replacement 354-23 6 15,000 15,000 Pole Repair or Replacement 354-24 6 15,000 15,000 Electric - Transmission Total 15,000 15,000 15,000 90,000 15,000 150,000 Engineering GMC Sierra 4WD Ext Cab 376E 3 28,920 28,920 Chevrolet Colorado 732E 3 35,000 35,000 Engineering Total 35,000 28,920 63,920 Natural Gas - Distribution Ford Dump Truck 037 1 65,000 65,000 Jeep Grand Cherokee 113 3 43,473 43,473 Produced Using the Plan -It Capital Planning Software Page 2 Tuesday, December 10, 2019 Department Project # Priority 2020 2021 2022 2023 2024 Total Chevrolet Silverado w/Utility Body 130 1 65,564 65,564 Ford F550 Welding Truck 357 2 92,700 92,700 Misc Developments & System Improvements 376G-20-1 6 50,000 50,000 Alley #140 Reconstruction 376G-20-2 3 8,000 8,000 SCD Trunk Storm - Relocate for City 376G-20-3 3 20,000 20,000 Trunk Highway 15 State Improvement Project 376G-20-4 1 5,000 5,000 Waller Drive Rebuild for City (2019 Carryover) 376G-20-5 3 32,500 32,500 Isolated Main Repl. (Barley & Glen. In - Contract) 376G-20-6 2 95,000 95,000 Misc Developments & System Improvements 376G-21-1 6 75,000 75,000 Roberts Rd SW & Dale Street Improvements 376G-21-2 6 10,000 10,000 Misc Developments & System Improvements 376G-22-1 6 75,000 75,000 Misc Developments & System Improvements 376G-23-1 6 75,000 75,000 Misc Developments & System Improvements 376G-24-1 6 50,000 50,000 Regulator Station Improvements 378G-20-1 2 20,000 20,000 Regulator Station Improvements 378G-21-1 2 15,000 15,000 Regulator Station Improvements 378G-22-1 2 15,000 15,000 Regulator Station Improvements 378G-23-1 2 15,000 15,000 Service Lines 380G-20-1 2 57,000 57,000 Service Lines 380G-21-1 2 55,000 55,000 Service Lines 380G-22-1 2 55,000 55,000 Service Lines 380G-23-1 2 55,000 55,000 Service Lines 380G-24-1 2 55,000 55,000 Meters, AMI & All Fittings 381G-20-1 2 100,000 100,000 Meters, AMI & All Fittings 381G-21-1 2 10,000 10,000 Meters, AMI & All Fittings 381G-22-1 2 90,000 90,000 Meters, AMI & All Fittings 381G-23-1 2 90,000 90,000 Meters, AMI & All Fittings 381G-24-1 2 90,000 90,000 Residential Meters 383G-20-1 2 15,000 15,000 Industrial Metering & Regulation 385G-20-1 2 80,000 80,000 Industrial Metering & Regulation 385G-21-1 2 30,000 30,000 Industrial Metering & Regulation 385G-22-1 2 30,000 30,000 Pressure Monitors -AMI System 387G-20-1 1 25,000 25,000 Cathodic Protection Monitoring Equipment -AMI 387G-21-1 1 30,000 30,000 Cathodic Protection Monitoring Equipment -AMI 387G-22-1 1 15,000 15,000 Tools 394G-20-1 3 10,000 10,000 Tools 394G-21-1 3 10,000 10,000 Tools 394G-22-1 3 10,000 10,000 Tools 394G-23-1 3 10,000 10,000 Tools 394G-24-1 3 10,000 10,000 Natural Gas Sonic Nozzle Meter Prover 395-20-1 3 60,000 60,000 Ford F350 Super Duty Pickup (Utility Box) 623 1 37,500 37,500 Ford F-250 X-cab (Utility Box) 651 1 35,000 35,000 Chevrolet 4 Door X-cab 948 1 65,564 65,564 Natural Gas - Distribution Total 742,700 235,000 486,128 245,000 248,473 1,957,301 Natural Gas - Transmission Land HCP Interconnect Station 365G-22-1 6 10,000 10,000 Automation of Block & Side Valves 367G-23-1 2 900,000 900,000 Hot Tap/Side Valve/Misc 368G-22-1 2 750,000 750,000 Replacement of Regulators at Station 2 369G-20-1 2 32,000 32,000 New Ulm Interonnect- Micro Motion Meter 369G-20-2 1 17,000 17,000 Metering & Filtration for HCP Interconnect Station 369G-22-1 2 100,000 100,000 SCADA for HCP Interconnect Station 370G-22-1 2 15,000 15,000 Natural Gas - Transmission Total 49,000 875,000 900,000 1,824,000 Produced Using the Plan -It Capital Planning Soffware Page 3 Tuesday, December 10, 2019 Department Project # Priority 2020 2021 2022 2023 2024 Total GRAND TOTAL 1,775,700 1,243,180 2,536,764 1,783,592 517,313 7,856,549 Produced Using the Plan -It Capital Planning Software Page 4 Tuesday, December 10, 2019 Hutchinson Utilities Commission Capital Improvement Plan 2020 thm 2024 PROJECTS BY FUNDING SOURCE Source Project # Priority 2020 2021 2022 2023 2024 Total Capital Replacement Reserves Tiling North Side of Plant 1 341-20-1 3 50,000 50,000 Side Stream Filter Bldg Replacement - unit 1 341-21-1 3 150,000 150,000 Roof Installation - Old Unit 8 Bldg 341-21-2 3 30,000 30,000 Asphalt Replacement - Plant 2 341-22-1 3 150,000 150,000 Install Asphalt at Plant 1 341-23-1 3 150,000 150,000 East Engine room/Floor Epoxy 343-20-1 3 35,000 35,000 Scrapping Out Unit 8 344-21-1 2 30,000 30,000 Unit #1 Hot Section Overhaul 344-22-1 3 700,000 700,000 (2) Instrument Air Compressors 346-20-1 2 45,000 45,000 Cylinder Head Tools for Unit 5 346-20-2 1 15,000 15,000 Metric Tools - Units 5,647 346-20-3 1 25,000 25,000 High Pressure Filter Cleaning Machine 346-20-4 1 11,000 11,000 Starting Air Compressor for units 5,6,&7 346-20-5 1 45,000 45,000 Auxillary Boilder Replacement - Unit 1 346-21-1 2 200,000 200,000 Plant 1 Cooling Tower Drain Valves 346-21-2 2 50,000 50,000 Pressure Calibration Machine 346-21-3 2 15,000 15,000 Engineering Transmission Loop HTI 353-22-1 3 75,000 75,000 Pole Repair or Replacement 354-20 6 15,000 15,000 Pole Repair or Replacement 354-21 6 15,000 15,000 Pole Repair or Replacement 354-22 6 15,000 15,000 Pole Repair or Replacement 354-23 6 15,000 15,000 Pole Repair or Replacement 354-24 6 15,000 15,000 Station Equipment 362-20-1 2 10,000 10,000 Step Up Transformer - Unit #3 362-20-2 2 7,000 7,000 Station Equipment 362-21-1 2 10,000 10,000 Station Equipment 362-22-1 2 10,000 10,000 Station Equipment 362-23-1 2 10,000 10,000 Station Equipment 362-24-1 2 10,000 10,000 Land HCP Interconnect Station 365G-22-1 6 10,000 10,000 Duct Installation 366-20-1 3 15,000 15,000 Duct Installation 366-21-1 3 15,000 15,000 Duct Installation 366-22-1 3 15,000 15,000 Duct Installation 366-23-1 3 15,000 15,000 Duct Installation 366-24-1 3 15,000 15,000 Fdr #12A Reconductor 367-20-1 2 30,000 30,000 Fdr #15-16 Reconductor 367-20-2 2 35,000 35,000 Civil Air Patrol Project 367-20-3 2 7,000 7,000 Century Ct. Apartments - 2nd Addition 367-20-4 2 10,000 10,000 City Road Projects 367-20-5 2 10,000 10,000 New Developments 367-20-6 6 51,000 51,000 New Developments 367-21-1 6 51,000 51,000 Fdr # 14 Reconductor 367-21-2 2 35,000 35,000 Energy Park 367-21-3 2 75,000 75,000 New Developments 367-22-1 6 51,000 51,000 Produced Using the Plan -It Capital Planning Software Page 1 Tuesday, December• 10, 2019 Source Project # Priority 2020 2021 2022 2023 2024 Total Fdr #22 Loop 367-22-2 3 60,000 60,000 New Developments 367-23-1 6 51,000 51,000 New Developments 367-24-1 6 51,000 51,000 Automation of Block & Side Valves 367G-23-1 2 900,000 900,000 Transformer Replacement 368-20-1 1 40,000 40,000 Transformers - New Developments 368-20-2 6 50,000 50,000 Fdr #12A Reconductor 368-20-3 6 15,000 15,000 EV Charging Station Transformer 368-20-4 6 10,000 10,000 Century Ct. Apartments - 2nd Addition 368-20-5 2 15,000 15,000 Civil Air Patrol 368-20-6 2 4,000 4,000 Transformer Replacement 368-21-1 1 40,000 40,000 Transformers - New Developments 368-21-2 6 50,000 50,000 Transformer Replacement 368-22-1 1 40,000 40,000 Transformers - New Development 368-22-2 6 50,000 50,000 Transformer Replacement 368-23-1 1 40,000 40,000 Transformers - New Development 368-23-2 6 50,000 50,000 Transformer Replacement 368-24-1 1 40,000 40,000 Transformers - New Development 368-24-2 6 50,000 50,000 Hot Tap/Side Valve/Misc 368G-22-1 2 750,000 750,000 Replacement of Regulators at Station 2 369G-20-1 2 32,000 32,000 New Ulm Interonnect- Micro Motion Meter 369G-20-2 1 17,000 17,000 Metering & Filtration for HCP Interconnect Station 369G-22-1 2 100,000 100,000 Meters 370-20-1 2 30,000 30,000 Meters 370-21-1 2 30,000 30,000 Meters 370-22-1 2 30,000 30,000 Meters 370-23-1 2 30,000 30,000 Meters 370-24-1 2 30,000 30,000 SCADA for HCP Interconnect Station 370G-22-1 2 15,000 15,000 Misc Developments & System Improvements 376G-20-1 6 50,000 50,000 Alley #140 Reconstruction 376G-20-2 3 8,000 8,000 SCD Trunk Storm - Relocate for City 376G-20-3 3 20,000 20,000 Trunk Highway 15 State Improvement Project 376G-20-4 1 5,000 5,000 Waller Drive Rebuild for City (2019 Carryover) 376G-20-5 3 32,500 32,500 Isolated Main Repl. (Barley & Glen. In - Contract) 376G-20-6 2 95,000 95,000 Misc Developments & System Improvements 376G-21-1 6 75,000 75,000 Roberts Rd SW & Dale Street Improvements 376G-21-2 6 10,000 10,000 Misc Developments & System Improvements 376G-22-1 6 75,000 75,000 Misc Developments & System Improvements 376G-23-1 6 75,000 75,000 Misc Developments & System Improvements 376G-24-1 6 50,000 50,000 Regulator Station Improvements 378G-20-1 2 20,000 20,000 Regulator Station Improvements 378G-21-1 2 15,000 15,000 Regulator Station Improvements 378G-22-1 2 15,000 15,000 Regulator Station Improvements 378G-23-1 2 15,000 15,000 Service Lines 380G-20-1 2 57,000 57,000 Service Lines 380G-21-1 2 55,000 55,000 Service Lines 380G-22-1 2 55,000 55,000 Service Lines 380G-23-1 2 55,000 55,000 Service Lines 380G-24-1 2 55,000 55,000 Meters, AMI & All Fittings 381G-20-1 2 100,000 100,000 Meters, AMI & All Fittings 381G-21-1 2 10,000 10,000 Meters, AMI & All Fittings 381G-22-1 2 90,000 90,000 Meters, AMI & All Fittings 381G-23-1 2 90,000 90,000 Meters, AMI & All Fittings 381G-24-1 2 90,000 90,000 Residential Meters 383G-20-1 2 15,000 15,000 Industrial Metering & Regulation 385G-20-1 2 80,000 80,000 Produced Using the Plan -It Capital Planning Software Page 2 Tuesday, December- 10, 2019 Source Project # Priority 2020 2021 2022 2023 2024 Total Industrial Metering & Regulation 385G-21-1 Industrial Metering & Regulation 385G-22-1 Pressure Monitors -AMI System 387G-20-1 Cathodic Protection Monitoring Equipment -AMI 387G-21-1 Cathodic Protection Monitoring Equipment -AMI 387G-22-1 EV Fast Charger 394-20-1 Level 2 Charger 394-20-2 Tools 394G-20-1 Tools 394G-21-1 Tools 394G-22-1 Tools 394G-23-1 Tools 394G-24-1 Natural Gas Sonic Nozzle Meter Prover 395-20-1 Capital Replacement Reserves Total Fleet Designated Reserves Ford Dump Truck 037 Jeep Grand Cherokee 113 Chevrolet Silverado w/Utility Body 130 GMC Sierra 4WD Ext Cab 181E Dodge Ram 1500 226E International 4900 w/Altec 255E Vactron Trailer 270E Vactron Drill 270E- 1 Ford F550 Welding Truck 357 GMC Sierra 4WD Ext Cab 376E Chevy Silverado 542 Ford F350 Super Duty Service Truck 574E Ford F350 Super Duty Pickup (Utility Box) 623 Ford F-250 X-cab (Utility Box) 651 Chevrolet Colorado 732E Electric Vehicle 827 Chevrolet 4 Door X-cab 948 Chevy Silverado 990 Dodge Dakota 4x4 995E John Deere 310 Backhoe TBD - 2 Single Phase Wire Trailer TBD - 6 Fleet Designated Reserves Total GRAND TOTAL 2 30,000 2 30,000 1 25,000 1 30,000 1 15,000 3 75,000 3 8,000 3 10,000 3 10,000 3 10,000 3 3 30,000 30,000 25,000 30,000 15,000 75,000 8,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 60,000 1,289,500 1,031,000 2,286,000 1,581,000 416,000 6,603,500 1 65,000 3 1 65,564 3 2 27,318 3 202,592 1 63,654 1 148,526 2 92,700 3 3 30,000 1 65,000 1 37,500 1 35,000 3 35,000 3 40,000 1 65,564 3 30,000 2 27,318 1 110,000 43,473 28,920 28,920 65,000 43,473 65,564 28,920 27,318 202,592 63,654 148,526 92,700 28,920 30,000 65,000 37,500 35,000 35,000 40,000 65,564 30,000 27,318 110,000 11,000 486,200 212,180 250,764 202,592 101,313 1,253,049 1,775,700 1,243,180 2,536,764 1,783,592 517,313 7,856,549 Produced Using the Plan -It Capital Planning Software Page 3 Tuesday, December 10, 2019 HUTCHINSON UTILITIES COMMISSION�1` Board Action Form �rMturscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: Consideration of 2020 Non -Union Pay Grid & Performance Guide Presenter: Jeremy Carter Agenda Item Type: Time Requested (Minutes): 10 New Business Attachments,: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Per the objectives of HUC's Compensation Plan for non -union employees written in HUC's exempt Employee Handbook, HUC will establish and maintain a compensation plan that enables HUC to be highly competitive within our defined industry. Through previous discussions with the Commission a transition plan was identified to move the non -union employees to a new Pay for performance Guide, eliminate the lump sum wage component of the current compensation plan, and establish new performance grading criteria for which non -union employees will be scored. Below are the steps recommended for the transition. 1. Move the 2019 pay grid one-time 7% to bring all non -union employees back on the pay grid, which will eliminate the lump sum compensation component moving forward. 2. Use the current performance rating criteria in Taleo for year-end 2019 reviews and apply those review scores to the new performance guide attached. 3. Develop in early 2020 the new performance rating criteria to be applied to year-end 2020 reviews and apply those review scores to the new performance guide attached. 4. In early 2021 do an external/consultant compensation assessment to the market and make appropriate adjustments if needed. BOARD ACTION REQUESTED: Approve the proposed 2020 non -union pay grid and the 2020 performance guide. Fiscal Impact: Included in current budget: No Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: Projected 2020 PAY GRID 2020 COMPLETE PAY GRID Between Grades: 6% 7% Increase to Grid over 2019 Range: 35.11% Starting midpoint: 0 Pts Grade Min Salar r Range Mid Max 100% Minimum 44,401.21 47,065.29 49,889.21 52,882.56 56,055.51 59,418.84 62,983.98 66,763.01 70,768.79 75,014.92 79,515.82 84,286.77 89,343.97 94,704.61 100,386.89 106,410.10 112,794.70 119,562.39 126,736.13 134,340.30 142,400.71 150,944.76 108.75% Minimum „��,�y,J,�y��lk��}A%// 48,286.32 51,183.50 54,254.52 57,509.78 60,960.37 64,617.99 68,495.08 72,604.78 76,961.06 81,578.72 86,473.45 91,661.86 97,161.57 102,991.26 109,170.74 115,720.98 122,664.24 130,024.10 137,825.54 146,095.07 154,860.78 164,152.43 108.76% 48,290.76 51,188.21 54,259.50 57,515.07 60,965.98 64,623.93 68,501.37 72,611.45 76,968.14 81,586.22 86,481.41 91,670.29 97,170.50 103,000.73 109,180.78 115,731.62 122,675.52 130,036.05 137,838.21 146,108.51 154,875.02 164,167.52 117.50% 52,171.43 55,301.72 58,619.82 62,137.01 65,865.23 69,817.15 74,006.18 78,446.54 83,153.34 88,142.53 93,431.08 99,036.95 104,979.17 111,277.91 117,954.60 125,031.86 132,533.78 140,485.81 148,914.96 157,849.86 167,320.84 177,360.10 117.51% ryAA�fp pAAARR1126.25%ifpfipp IIA��NNRtttt��llllllllllllllll�llllllllll��ll 52,175.86 55,306.42 58,624.81 62,142.29 65,870.83 69,823.08 74,012.47 78,453.22 83,160.41 88,150.03 93,439.04 99,045.38 104,988.10 111,287.39 117,964.63 125,042.51 132,545.06 140,497.76 148,927.62 157,863.28 167,335.08 177,375.19 tl 56,056.53 59,419.93 62,985.13 66,764.23 70,770.09 75,016.29 79,517.27 84,288.30 89,345.60 94,706.33 100,388.72 106,412.04 112,796.77 119,564.57 126,738.44 134,342.75 142,403.31 150,947.52 160,004.36 169,604.63 179,780.90 190,567.76 126.26% Upper Middle 56,060.97 59,424.63 62,990.12 66,769.52 70,775.69 75,022.23 79,523.57 84,294.98 89,352.68 94,713.84 100,396.67 106,420.47 112,805.70 119,574.04 126,748.48 134,353.39 142,414.59 150,959.47 160,017.04 169,618.06 179,795.14 190,582.86 130.63% Upper Middle 58,001.30 61,481.39 65,170.28 69,080.48 73,225.32 77,618.84 82,275.97 87,212.52 92,445.28 97,991.99 103,871.52 110,103.80 116,710.03 123,712.63 131,135.39 139,003.51 147,343.72 156,184.35 165,555.40 175,488.73 186,018.05 197,179.14 130.64% Maximum 58,005.74 61,486.09 65,175.26 69,085.77 73,230.92 77,624.78 82,282.27 87,219.20 92,452.35 97,999.49 103,879.47 110,112.23 116,718.97 123,722.10 131,145.43 139,014.15 147,355.00 156,196.30 165,568.08 175,502.16 186,032.29 197,194.24 135% Maximum 59,941.65 63,538.14 67,350.43 71,391.46 75,674.95 80,215.44 85,028.36 90,130.07 95,537.87 101,270.15 107,346.36 113,787.14 120,614.36 127,851.23 135,522.29 143,653.63 152,272.86 161,409.22 171,093.78 181,359.40 192,240.97 203,775.43 0 135 1 44,401.21 52,171.43 59,941.65 136 154 2 47,065.29 55,301.72 63,538.14 155 174 3 49,889.21 58,619.82 67,350.43 175 195 4 52,882.56 62,137.01 71,391.46 196 217 5 56,055.51 65,865.23 75,674.95 218 241 6 59,418.84 69,817.15 80,215.44 242 267 7 62,983.98 74,006.18 85,028.36 268 295 S 66,763.01 78,446.54 90,130.07 296 325 9 70,768.79 83,153.34 95,537.87 326 357 10 75,014.92 88,142.53 101,270.15 358 391 11 79,515.82 93,431.08 107,346.36 392 427 12 84,286.77 99,036.95 113,787.14 428 465 13 89,343.97 104,979.17 120'614.36 466 505 14 94,704.61 111,277.91 127,851.23 506 545 15 100,386.89 117,954.60 135,522.29 546 585 16 106,410.10 125,031.86 143,653.63 586 - 625 17 112,794.70 132,533.78 152,272.86 626 665 18 119,562.39 140,485.81 161,409.22 666 705 19 126,736.13 148,914.96 171,093.78 706 745 20 134,340.30 157,849.86 151,359.40 746 1785 21 142,400.71 167,320.84 192,240.97 786 1825 1 22 1 150,944.76 177,360.10 203,775.4311 Positions Grade Purchasing/Inventory Agent 7 Account Supervisor S Administrative Coordinator S Accountant S Energy Conservation Administrator 9 Computer Systems Analyst 10 Electric Transmission/Distribution Manager 15 Production Manager 15 Financial Manager 16 Engineering Services Manager 16 Natural Gas Director 17 General Manager 21 2019 PAY GRID Between Grades: 6% Range: 35.0% Starting midpoint: 0 2019 Salary Range Grade Min Mid Max 1 41,496.46 48,758.35 56,020.23 2 43,986.25 51,683.85 59,381.44 3 46,625.43 54,784.88 62,944.33 4 49,422.95 58,071.97 66,720.99 5 52,388.33 61,556.29 70,724.25 6 55,531.63 65,249.67 74,967.70 7 58,863.53 69,164.65 79,465.76 8 62,395.34 73,314.52 84,233.71 9 66,139.06 77,713.40 89,287.73 10 70,107.40 82,376.20 94,645.00 11 74,313.85 87,318.77 100,323.70 12 1 78,772.68 92,557.90 106,343.12 13 83,499.04 98,111.37 112,723.70 14 88,508.98 103,998.05 119,487.13 15 93,819.52 110,237.94 126,656.35 16 99,448.69 116,852.21 134,255.73 17 105, 415.61 123, 863.35 142, 311.08 18 111,740.55 131, 295.15 1 150,849.74 19 1 118,444.98 139,172.86 159,900.73 20 125, 551.68 147, 5 23.23 169, 494.77 21 133,084.78 156,374.62 179, 664.46 22 141, 069.87 165, 75 7.10 190,444.33 2019 Hourly Rate Range Min Mid Max 19.95 23.44 26.93 21.15 24.85 28.55 22.42 26.34 30.26 23.76 27.92 32.08 25.19 29.59 34.00 26.70 1 31.37 36.04 28.30 33.25 38.20 30.00 35.25 40.50 31.80 37.36 42.93 33.71 39.60 45.50 35.73 41.98 48.23 37.87 44.50 51.13 40.14 47.17 54.19 42.55 50.00 57.45 45.11 53.00 60.89 47.81 56.18 64.55 50.68 59.55 68.42 53.72 63.12 72.52 56.94 66.91 76.88 60.36 70.92 81.49 63.98 75.18 86.38 67.82 79.69 91.56 2020 PAY GRID RECOMMENDATION - 7% Increase to Grid Between Grades: 6% Range: 35.00% Starting midpoint: 0 2020 Salary Range Grade Min Mid Max 1 44,401.21 52,171.43 59,941.65 2 47,065.29 55,301.72 63,538.14 3 49,889.21 58,619.82 67,350.43 4 52,882.56 62,137.01 71,391.46 5 56,055.51 65,865.23 75,674.95 6 59,418.84 69,817.15 80,215.44 7 62,983.98 74,006.18 85,028.36 8 66,763.01 78,446.54 90,130.07 9 70,768.79 83,153.34 95,537.87 10 75,014.92 88,142.53 101,270.15 11 79,515.82 93,431.08 107,346.36 12 1 84,286.77 99,036.95 113,787.14 13 89,343.97 104,979.17 120,614.36 14 94,704.61 111,277.91 127,851.23 15 100, 3 86.89 117,954.60 135,522.29 16 106, 410.10 125,031.86 143,653.63 17 112,794.70 132,533.78 152, 272.86 18 119,562.39 1 140, 485.81 161, 409.2 2 19 126,736.13 148, 914.9 6 171, 09 3.78 20 1 134, 340.30 157, 849.86 181, 359.40 21 142,400.71 167,320.84 192, 240.97 22 150,944.76 177,360.10 203,775.43 2020 Hourly Rate Range Min Mid Max 21.35 25.08 28.82 22.63 26.59 30.55 23.99 28.18 32.38 25.42 29.87 34.32 26.95 31.67 36.38 28.57 33.57 38.57 30.28 35.58 40.88 32.10 37.71 43.33 34.02 39.98 45.93 36.06 42.38 48.69 38.23 44.92 51.61 40.52 47.61 54.71 42.95 50.47 57.99 45.53 53.50 61.47 48.26 56.71 65.15 51.16 60.11 69.06 54.23 63.72 73.21 57.48 67.54 77.60 60.93 71.59 82.26 64.59 75.89 87.19 68.46 80.44 92.42 72.57 85.27 97.97 Positions Grade Positions Grade Purchasing/Inventory Agent 7 Electric Transmission/Distribution Manager 15 Account Supervisor 8 Production Manager 15 Administrative Coordinator 8 Financial Manager 16 Accountant 8 Engineering Services Manager 16 Energy Conservation Administrator 9 Natural Gas Director 17 Computer Systems Analyst 10 General Manager 21 Pay for Performance Guide Performance Rating Minimum Lower Middle Mid -Point Market Upper Middle Maximum Outstanding Performer (4.1-5) 7% 6% 5% 4% 3% Exceeds Expectations (3.1-4) 6% 5% 4% 3% 2% Solid Performer (2.1-3) 5% 4% 3% 2% 1% Needs Improvement (1.1-2) 2% 1% 0% 0% 0% Unsatisfactory (0-1) 0% 0% 0% 0% 0% Pay Grid Ranges 100-108.75% of Minimum 108.76-117.50% of Minimum 117.51-126.25% of Minimum 126.26-130.63% of Minimum 130.64 - 135% of Minimum HUTCHINSON UTILITIES COMMISSION�1` Board Action Form �rMturscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: Consideration and Approval of the 2020 Pay Equity Report Presenter: Brenda Ewing Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments,: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The required Pay Equity Report for 2020 (2019 data) has been prepared for submission to the Minnesota Management and Budget (MMB) Department. The attached report must be approved by the Hutchinson Utilities Commission and submitted to MMB by January 31, 2020. The information to be submitted indicates that HUC continues to be in compliance in regards to the pay equity requirements. The underpayment ratio value of 217.39 included in Section II of the Compliance Report is above the minimum ratio of 80 that is required to be in compliance. It is requested that the Commission approve the enclosed report at this meeting. The report will be sent to MMB before the deadline of January 31, 2020, however, we generally do not receive confirmation from MMB that we are compliant until later in the year. BOARD ACTION REQUESTED: Approval of the 2020 Pay Equity Report Fiscal impact: none Included in current budget:Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: Pay Equity Implementation Report Print Date: 12/11/2019 Part A: Jurisdiction Identification Jurisdiction: Hutchinson Utilities Commission 225 Michigan St. SE Hutchinson. MN 55350 Contact: Angie Radke Jurisdiction Type: Utility Company Phone: 320-234-0501 E-Mail: aradke@ci.hutchinson.mn.us Part B: Official Verification 1. The job evaluation system used measured skill, effort responsibility and working conditions and the same system was used for all classes of employees. The system used was: Description: Safe Job Evaluation System 2. Health Insurance benefits for male and female classes of comparable value have been evaluated and: Pass Part C: Total Payroll is the annual payroll for the calendar year just ended December 31. 3. An official notice has been posted at: 225 Michigan St SE - Main Office (prominent location) informing employees that the Pay Equity Implementation Report has been filed and is available to employees upon request. A copy of the notice has been sent to each exclusive representative, if any, and also to the public library. The report was approved by: (governing body) (chief elected official) (title) ❑ Checking this box indicates the following: - signature of chief elected official - approval by governing body - all information is complete and accurate, and - all employees over which the jurisdiction has final budgetary authority are included Date Submitted: Compliance Report Jurisdiction: Hutchinson Utilities Report Year: 2020 225 Michigan Street SE Case: 1 - 2019 Data (Private (Jur Only)) Hutchinson MN 55350 Contact: Jeremy Carter Phone: (320) 234-0505 E-Mail: jcarter@ci.hutchinson.mn.us The statistical analysis, salary range and exceptional service pay test results are shown below. Part I is general information from your pay equity report data. Parts 11, III and IV give you the test results. For more detail on each test, refer to the Guide to Pay Equity Compliance and Computer Reports. I. GENERAL JOB CLASS INFORMATION # Job Classes # Employees Avg. Max Monthly Pay per employee II. STATISTICAL ANALYSIS TEST A. Underpayment Ratio = 217.39 Male Female Balanced All Job Classes Classes Classes Classes 23 5 1 29 42 6 4 52 7,548.40 6,496.99 7,382.83 Male Female Classes Classes a. # At or above Predicted Pay 13 4 b. # Below Predicted Pay 10 1 c. TOTAL 23 5 d. % Below Predicted Pay 43.48 20.00 (b divided by c = d) *(Result is % of male classes below predicted pay divided by % of female classes below predicted pay.) B. T-test Results Degrees of Freedom (DF) = 46 Value of T = 1.708 a. Avg. diff. in pay from predicted pay for male jobs = ($18) b. Avg. diff. in pay from predicted pay for female jobs = ($271) III. SALARY RANGE TEST = 0.00 (Result is A divided by B) A. Avg. # of years to max salary for male jobs = 4.00 B. Avg. # of years to max salary for female jobs = 0.00 IV. EXCEPTIONAL SERVICE PAY TEST = 0.00 (Result is B divided by A) A. % of male classes receiving ESP 0.00 B. % of female classes receiving ESP 0.00 *(If 20% or less, test result will be 0.00) Hutchinson Utilities Job Class Data Entry Verification List LGID 28 Case: 2019 Data Job Class Nbr Nbr Class Jobs Min Mo Max Mo Yrs to Max Yrs of Exceptional Nbr Title Males Females Type Points Salary Salary Salary Service Service Pay 1 Account Coordinator 0 2 F 163 $5,017.90 $5,017.90 0.00 9.00 3 Engineering/Metering Te& 2 0 M 220 $6,499.88 $6,499.88 0.00 11.00 4 Maintenance Mechanic 3 0 M 220 $4,856.71 $6,475.61 4.00 0.00 5 Natural Gas Meter Service 1 0 M 225 $6,499.88 $6,499.88 0.00 13.00 6 Welder/Serviceperson 3 0 M 240 $6,499.88 $6,499.88 0.00 15.00 7 Purchasing/Inventory Ager 1 0 M 243 $4,905.24 $6,723.47 0.00 21.00 2 GIS Technician 1 0 M 248 $6,752.94 $6,752.94 0.00 12.00 8 Operations Engineer 9 0 M 260 $6,475.61 $6,475.61 0.00 20.00 9 Administrative Coordinator 0 1 F 270 $5,199.90 $7,019.87 0.00 2.00 10 Account Supervisor 0 1 F 270 $5,199.90 $7,019.87 0.00 26.00 11 Accountant 0 1 F 273 $5,199.90 $7,019.87 0.00 15.00 12 Maintenance Electrician 2 0 M 273 $6,765.07 $6,765.07 0.00 13.00 13 System Controller 3 1 B 275 $6,973.07 $6,973.07 0.00 12.00 14 Natural Gas Meter Crew C 1 0 M 290 $7,226.13 $7,226.13 0.00 22.00 15 Electric Lineperson 5 0 M 293 $7,158.53 $7,158.53 0.00 19.00 16 Energy Conservation Admi 1 0 M 310 $5,511.89 $7,441.06 0.00 18.00 17 Maintenance Crew Chief 1 0 M 315 $7,226.13 $7,226.13 0.00 8.00 18 Computer Systems Analys 0 1 F 330 $5,842.95 $7,886.52 0.00 43.00 20 Operations Crew Chief 1 0 M 335 $7,226.13 $7,226.13 0.00 20.00 21 System Control Crew Chie 1 0 M 340 $7,695.85 $7,695.85 0.00 27.00 22 Distribution Crew Chief 1 0 M 348 $7,226.13 $7,226.13 0.00 12.00 23 Electric Crew Chief 2 0 M 360 $7,896.91 $7,896.91 0.00 21.00 24 Transmission Crew Chief 1 0 M 370 $7,226.13 $7,226.13 0.00 27.00 25 Electric Trans/Dist Manage 1 0 M 520 $7,818.92 $10,554.06 0.00 23.00 26 Production Manager 1 0 M 545 $7,818.92 $10,554.06 0.00 42.00 27 Financial Manager 1 0 M 560 $8,286.91 $11,188.45 0.00 12.00 28 Engineering Services Man, 1 0 M 585 $8,286.91 $11,188.45 0.00 19.00 29 Natural Gas Director 1 0 M 600 $8,784.36 $12,008.30 0.00 27.00 30 General Manager 1 0 M 760 $11,089.65 $14,972.25 0.00 6.00 Job Number Count: 29 Predicted Pay Report for Hutchinson Utilities Case: 2019 Data 16000 14000 12000 10000 CO 8000 6000 4000 12/11/2019 100 200 300 400 500 600 700 800 Points V14e,Jobs Fenn4e,Jobs BabincedJobs Flredcted Flay Page 1 of 2 Job Nbr Job Title Nbr Males Predicted Pay Report for Hutchinson Utilities Case: 2019 Data Nbr Total Job Job Females Nbr Type Points Max Mo Salary Predicted Pay 12/11/2019 Pay Difference 1 Account Coordinator 0 2 2 Female 163 $5,017.90 $6,384.71 ($1,366.81) 3 Engineering/Metering Technicia 2 0 2 Male 220 $6,499.88 $6,485.58 $14.30 4 Maintenance Mechanic 3 0 3 Male 220 $6,475.61 $6,485.58 ($9.97) 5 Natural Gas Meter Service 1 0 1 Male 225 $6,499.88 $6,494.46 $5.42 6 Welder/Serviceperson 3 0 3 Male 240 $6,499.88 $6,525.50 ($25.62) 7 Purchasing/Inventory Agent 1 0 1 Male 243 $6,723.47 $6,552.00 $171.47 2 GIS Technician 1 0 1 Male 248 $6,752.94 $6,595.81 $157.13 8 Operations Engineer 9 0 9 Male 260 $6,475.61 $6,712.62 ($237.01) 9 Administrative Coordinator 0 1 1 Female 270 $7,019.87 $6,808.00 $211.87 10 Account Supervisor 0 1 1 Female 270 $7,019.87 $6,808.00 $211.87 11 Accountant 0 1 1 Female 273 $7,019.87 $6,836.75 $183.12 12 Maintenance Electrician 2 0 2 Male 273 $6,765.07 $6,836.75 ($71.68) 13 System Controller 3 1 4 Balanced 275 $6,973.07 $6,855.83 $117.24 14 Natural Gas Meter Crew Chief 1 0 1 Male 290 $7,226.13 $6,969.03 $257.10 15 Electric Lineperson 5 0 5 Male 293 $7,158.53 $7,001.42 $157.11 16 Energy Conservation Administra 1 0 1 Male 310 $7,441.06 $7,207.26 $233.80 17 Maintenance Crew Chief 1 0 1 Male 315 $7,226.13 $7,207.94 $18.19 18 Computer Systems Analyst 0 1 1 Female 330 $7,886.52 $7,385.83 $500.69 20 Operations Crew Chief 1 0 1 Male 335 $7,226.13 $7,428.64 ($202.51) 21 System Control Crew Chief 1 0 1 Male 340 $7,695.85 $7,457.65 $238.20 22 Distribution Crew Chief 1 0 1 Male 348 $7,226.13 $7,504.20 ($278.07) 23 Electric Crew Chief 2 0 2 Male 360 $7,896.91 $7,565.18 $331.73 24 Transmission Crew Chief 1 0 1 Male 370 $7,226.13 $7,644.84 ($418.71) 25 Electric Trans/Dist Manager 1 0 1 Male 520 $10,554.06 $10,383.90 $170.16 26 Production Manager 1 0 1 Male 545 $10,554.06 $10,809.55 ($255.49) 27 Financial Manager 1 0 1 Male 560 $11,188.45 $11,064.53 $123.92 28 Engineering Services Manager 1 0 1 Male 585 $11,188.45 $11,490.18 ($301.73) 29 Natural Gas Director 1 0 1 Male 600 $12,008.30 $11,745.16 $263.14 30 General Manager 1 0 1 Male 760 $14,972.25 $14,990.36 ($18.11) Job Number Count: 29 Page 2 of 2 HUTCHINSON UTILITIES COMMISSION�1` Board Action Form �rMturscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: Supplemental Agreement to Transmission Facilities Assignment Agreement (Exhibit B-1) 0 Presenter: J. Carter Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments,: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: In October of 2016 HUC entered into a Transmission Facilities Assignment Agreement with Missouri River Energy Services which assigned functional control of HUC's transmission facilities to MRES for the purpose of capturing revenue sharing payments. Due to the future capacitor bank addition at the McLeod Substation, a supplemental agreement (Exhibit B-1, please see attached) is necessary to define these new transmission facilities, along with the roles and responsibilities of each Party. The Multi -Party Facilities Construction Agreement (Exhibit B-1, Appendix 2) between the Transmission Customers and MRES is also attached for your information. BOARD ACTION REQUESTED: Approve "Supplemental Agreement to Transmission Facilities Assignment Agreement". Fiscal Impact: $0.00 Included in current budget: No Budget Change: No PROJECT SECTION: Total Project Cost: Remaining Cost: Exhibit B-I SUPPLEMENTAL AGREEMENT TO TRANSMISSION FACILITIES ASSIGNMENT AGREEMENT MRES — Hutchinson — McLeod Substation Project This Supplemental Agreement to Transmission Facilities Assignment Agreement (the "Supplemental Agreement") is made and entered into this day of , 2019, by and between Missouri Basin Municipal Power Agency d/b/a Missouri River Energy Services, a body corporate and politic organized under the laws of the State of Iowa and existing under the intergovernmental cooperation laws of the States of Iowa, Minnesota, North Dakota and South Dakota ("MRES'), and the Hutchinson Utilities Commission of Hutchinson, Minnesota, a municipal corporation of the State of Minnesota ("Municipality"). WHEREAS, MRES and Municipality are parties to that certain Transmission Facilities Assignment Agreement dated October 31, 2016 (the "Assignment Agreement'), pursuant to which Municipality assigned functional control of the Transmission Facilities to MRES, and MRES agreed to serve as Transmission Owner of Municipality with respect to the Transmission Facilities, all for the purpose of enabling Municipality to derive and obtain revenue from the Transmission Facilities. Capitalized terms used in this Supplemental Agreement, but not defined herein, shall have the meanings given to them in the Assignment Agreement. WHEREAS, Municipality intends to construct a 50 MVAr capacitor bank at the McLeod 230 kV substation as further described in Appendix 1 to this Supplemental Agreement (the "Additional Facilities"), due to a requirement identified by MISO for Generation Interconnection Project Numbers J302, J476, J503, J512, J569, J583, J587, J590 & J611 to interconnect reliably with the MISO transmission system. WHEREAS, because MRES has been assigned functional control of the Transmission Facilities and is serving as Transmission Owner on behalf of Municipality, the RTO is requiring MRES to enter into the following additional agreements with the RTO with respect to the Additional Facilities: (a) a Multi -Parry Facilities Construction Agreement ("MPFCA"), a public version copy of which is attached hereto as Appendix 2; and (b) other ancillary agreements which may be required of MRES ("Ancillary Agreements"). The MPFCA and Ancillary Agreements are at times collectively referred to herein as the "Additional Agreements." WHEREAS, the Additional Agreements will impose obligations on MRES in addition to those obligations accepted by MRES under the Assignment Agreement. WHEREAS, Section 1.3(b) of the Assignment Agreement provides that, if MRES is required by FERC, the RTO or applicable law to enter into any agreement requiring it to undertake any obligations in excess of those stated in the Assignment Agreement, Municipality must assume, carry out and be responsible for such obligations and MRES may require Municipality to enter into a supplemental agreement further defining such obligations. Supplemental Agreement to Transmission Facilities Assignment Agreement Page 1 WHEREAS, MRES, as a condition to executing the Additional Agreements, requires that the Parties enter into this Supplemental Agreement to further define Municipality's obligations with respect to the Additional Agreements. NOW THEREFORE, the Parties agree as follows: 1. Obligations of Municipality. Municipality affirms its obligations under Section 1.3 of the Assignment Agreement. Without limiting the generality of the foregoing, Municipality agrees as follows with respect to the Additional Agreements: a. Municipality shall construct, care for, control and own the Additional Facilities, all in accordance with the terms and conditions of the Additional Agreements and applicable laws, rules and regulations. The Additional Facilities shall constitute Transmission Facilities under the Assignment Agreement for all purposes described therein, and the Parties shall update Exhibit A to the Assignment Agreement accordingly. b. Municipality shall assume, carry out and be responsible for any and all terms and conditions of the Additional Agreements which in any way: (i) relate to the construction, care or control of the Additional Facilities or any other Transmission Facilities, or (ii) obligate MRES to perform any obligations outside of the revenue sharing services of MRES described in the Assignment Agreement. C. Municipality shall reimburse MRES for any and all out-of-pocket costs, expenses, taxes or other charges incurred by MRES in connection with the Additional Agreements, it being the intent of the Parties that MRES shall not incur any costs or other charges as a result of the Additional Agreement or the performance thereof. d. Municipality shall immediately transmit to MRES copies of all notices, invoices, and other communications Municipality receives under or in connection with the Additional Agreements, if and to the extent such notices, invoices or other communications were not indicated to have been provided to MRES directly. e. Municipality shall provide to MRES all information reasonably requested by MRES to enable it to comply with its obligations under the Additional Agreements and the Assignment Agreement, including without limitation all documentation necessary to document Municipality's costs and expenses for which it may seek cost recovery. f. Municipality shall maintain all insurance required to be maintained by MRES under the terms of the Additional Agreements. If the Additional Agreements require insurance in excess of the coverages required of Municipality under the Assignment Agreement, Municipality shall obtain insurance equal to such excess required amounts. If Municipality fails to obtain such additional insurance, MRES may obtain such insurance and charge the cost thereof to Municipality pursuant to Section 2.4 of the Assignment Agreement. All such insurance shall: (i) name MRES, Western Minnesota Municipal Power Agency, and their directors, officers, agents, servants and employees as additional insureds; (ii) waive all rights of subrogation in accordance with the terms of Supplemental Agreement to Transmission Facilities Assignment Agreement Page 2 the Additional Agreements; and (iii) contain provisions specifying that such policies of Municipality are primary and apply to such extent without consideration for other policies separately carried. g. Municipality shall indemnify, defend and hold harmless MRES, Western Minnesota Municipal Power Agency and their officers, directors, employees and agents from and against any and all claims, damages (including without limitation liquidated damages), liabilities, costs and expenses, including attorneys' fees, arising out of or related to the Additional Agreement or the performance or non-performance of any obligations thereunder, unless such claim, damages or liability arises from the gross negligence of MRES. Such indemnification obligations shall survive the termination of this Agreement and shall be in addition to all indemnification obligations of Municipality under the Assignment Agreement. h. Municipality shall compensate MRES for its expenses in connection with this Supplemental Agreement and the Additional Agreements, by paying MRES a fixed fee as may be established by the MRES Board of Directors from time to time. Such fee, if established, shall be in addition to any fees and costs payable by Municipality pursuant to Section 2.4 of the Assignment Agreement. i. If Municipality fails to take any action or perform any obligation required of it under this Supplemental Agreement, MRES may, but shall not be obligated to, take such action or perform such obligation, either itself or through a third party, and directly charge Municipality for reimbursement of any associated costs thereof pursuant to Section 2.4 of the Assignment Agreement. 2. Obligations of MRES. MRES agrees as follows with respect to the Additional Agreements: a. MRES shall not execute any Additional Agreements, or any amendment thereto, without Municipality's review and approval thereof, which review and approval shall not be unreasonably delayed or withheld. Nothing contained in this section shall in any way limit or otherwise alter Municipality's obligations under the Assignment Agreement or this Supplemental Agreement. b. MRES shall consult and cooperate with Municipality regarding the election of any options or alternatives under the Additional Agreements and any other matters under the Additional Agreements relating to the Additional Facilities. C. MRES shall immediately transmit to Municipality copies of all notices, invoices, and other communications MRES receives under or in connection with the Additional Agreements, if and to the extent such notices, invoices or other communications were not indicated to have been provided to Municipality directly. Supplemental Agreement to Transmission Facilities Assignment Agreement Page 3 d. MRES shall provide to Municipality all information reasonably requested by Municipality to enable it to comply with its obligations under this Supplemental Agreement and the Additional Agreements. e. To the extent permitted by the Additional Agreements, MRES shall comply with the reasonable instructions of Municipality with respect to the performance of Municipality's obligations under this Supplemental Agreement. f. To the extent requested by Municipality and if supported by appropriate documentation from Municipality, MRES shall seek reimbursement of all costs and expenses to which Municipality may be entitled under the Additional Agreements, subject to the terms and conditions of the Assignment Agreement and the Additional Agreements. 3. Form of MPFCA. The parties acknowledge and agree that the form of MPFCA attached hereto as Appendix 2 may be subject to acceptance by FERC and that, prior to or in conjunction with acceptance by FERC, the terms of the MPFCA may be modified in certain respects. The parties accordingly agree that, upon acceptance by FERC, the MPFCA in the form so accepted by FERC shall supersede and replace the form of MPFCA attached hereto as Appendix 2 and shall be incorporated herein by this reference. 4. Effective Date. This Supplemental Agreement shall become effective as of the date the MPFCA becomes effective pursuant to the terms of the MPFCA. In the event the MPFCA fails to become effective within six months of the date of this Supplemental Agreement, this Supplemental Agreement shall be void and of no further force or effect. 5. Cooperation. The Parties shall take all such additional actions as may be required to carry out the terms of this Supplemental Agreement and the Additional Agreements. 6. Termination of Assignment Agreement. Upon termination of the Assignment Agreement for any reason, Municipality's obligations under this Supplemental Agreement shall continue for the respective terms of the Additional Agreements, unless and until Municipality causes MRES to be released from MRES's obligations under the Additional Agreement, in accordance with Section 3.3 of the Assignment Agreement. 7. No Other Additions or Modifications. The Parties hereby affirm the Assignment Agreement in all respects. The terms of this Supplemental Agreement are in addition to, and not in derogation of, the terms of the Assignment Agreement. This Supplemental Agreement is in all respects subject to, and incorporates by reference, the terms of the Assignment Agreement. [Signature Page Follows] Supplemental Agreement to Transmission Facilities Assignment Agreement Page 4 IN WITNESS WHEREOF, the Parties hereto have caused this Supplemental Agreement to Transmission Facilities Assignment Agreement as of the date set forth above. MISSOURI BASIN MUNICIPAL POWER AGENCY d/b/a MISSOURI RIVER ENERGY SERVICES Sign: Print Title: HUTCHINSON UTILITIES COMMISSION Sign: Print: Title: HUTCHINSON UTILITIES COMMISSION Sign: Print: Title: Supplemental Agreement to Transmission Facilities Assignment Agreement Page 5 APPENDIX 1 ADDITIONAL FACILITIES The addition of a 50 MVAr capacitor bank, circuit breaker, disconnect switch and bus conductor to the 230 kV main bus at the McLeod Substation near Hutchinson, Minnesota. Supplemental Agreement to Transmission Facilities Assignment Agreement Appendix 1 APPENDIX 2 MULTI -PARTY FACILITIES CONSTRUCTION AGREEMENT Supplemental Agreement to Transmission Facilities Assignment Agreement Appendix 2 Original Sheet No. 1 MULTI -PARTY FACILITIES CONSTRUCTION AGREEMENT entered into by the Midcontinent Independent System Operator, Inc., And J302 IC - Emmons -Logan Wind, LLC J476 IC - Outlaw Wind Project J503 IC - Emmons -Logan Wind, LLC J512 IC - Nobles 2 Power Partners, LLC J569 IC - Walleye Wind Project, LLC J583 IC - Heartland Divide II Wind, LLC J587 IC - Northern States Power Company J590 IC - MidAmerican Energy Company J611 IC - Contrail Wind Project, LLC And Missouri River Energy Services entered into on the day of , 20 Original Sheet No. 2 MULTI -PARTY FACILITIES CONSTRUCTION AGREEMENT THIS MULTI -PARTY FACILITIES CONSTRUCTION AGREEMENT (sometimes hereinafter referred to as "Agreement") is made and entered into this day of 20, by and among Emmons -Logan Wind, LLC, a limited liability company organized and existing under the laws of the State of Delaware (sometimes hereinafter referred to as "J302 Customer"), Outlaw Wind Project, a limited liability company organized and existing under the laws of the State of Delaware (sometimes hereinafter referred to as "J476 Customer"), Emmons - Logan Wind, LLC, a limited liability company organized and existing under the laws of the State of Delaware (sometimes hereinafter referred to as "J503 Customer"), Nobles 2 Power Partners, LLC, a limited liability company organized and existing under the laws of the State of Delaware (sometimes hereinafter referred to as "J512 Customer"), Walleye Wind Project, LLC, a limited liability company organized and existing under the laws of the State of Delaware (sometimes hereinafter referred to as "J569 Customer"), Heartland Divide II Wind, LLC, a limited liability company organized and existing under the laws of the State of Delaware (sometimes hereinafter referred to as "J583 Customer"), Northern States Power Company, a corporation organized and existing under the laws of the State of Minnesota (sometimes hereinafter referred to as "J587 Customer"), MidAmerican Energy Company, a corporation organized and existing under the laws of the State of Iowa (sometimes hereinafter referred to as "J590 Customer"), Contrail Wind Project, LLC, a limited liability company organized and existing under the laws of the State of Delaware (sometimes hereinafter referred to as "J611 Customer"), the Midcontinent Independent System Operator, Inc., a non-profit, non -stock corporation organized and existing under the laws of the State of Delaware (sometimes hereinafter referred to as the "Transmission Provider"), and Missouri Basin Municipal Power Agency d/b/a Missouri River Energy Services, a body and politic organized under Chapter 28E of the Code of Iowa, and existing under the intergovernmental cooperation statutes of the States of Iowa, Minnesota, North Dakota, and South Dakota (sometimes hereafter referred to as the "Transmission Owner"). Customers, Transmission Owner, or Transmission Provider each may be referred to as a "Party" or collectively as the "Parties." When it is not important to differentiate among them, Customers each may be referred to as "Customer" or collectively as the "Customers." RECITALS WHEREAS, Transmission Owner and Customers each own electric facilities and are engaged in one or more of the following generation, transmission, distribution and/or sale of electric power and energy; and WHEREAS, each Customer has interconnected with or will interconnect with the Transmission System of this or another Transmission Owner; and WHEREAS, Transmission Provider has functional control of the operations of the Transmission System, as defined herein, and is responsible for providing transmission and interconnection service on the transmission facilities under its control; and Original Sheet No. 3 WHEREAS, Customers intend to own and operate their respective facilities in accordance with their respective Large Generator Interconnection Agreements, Generator Interconnection Agreements, and/or Transmission Connection Agreements (as applicable); and WHEREAS, Customers' facilities cause the need for and share responsibility for the same Network Upgrade or System Protection Facilities on the Transmission Owner's Transmission System, the Common Use Upgrade ("CUU"); and WHEREAS, Transmission Provider has ascertained the extent to which each Customer's project impacts the constraint on Transmission Owner's Transmission System and causes the need for the CUU, and on that basis has calculated the costs of the CUU to be allocated to each Customer as set forth in Appendix A; and WHEREAS, Customers, Transmission Provider and Transmission Owner have agreed to enter into this Agreement for the purpose of facilitating the interconnection of their facilities by the construction of the necessary CUU to the Transmission System; NOW, THEREFORE, in consideration of and subject to the mutual covenants contained herein, it is agreed: Original Sheet No. 4 ARTICLE 1 DEFINITIONS Wherever used in this Agreement with initial capitalization, the following terms shall have the meanings specified or referred to in this Article 1. Terms used in this Agreement with initial capitalization not defined in this Article 1 shall have the meanings specified in the Tariff: 1.1 "Applicable Laws and Regulations" shall mean all duly promulgated applicable federal, state and local laws, regulations, rules, ordinances, codes, decrees, judgments, directives, or judicial or administrative orders, permits and other duly authorized actions of any Governmental Authority having jurisdiction over the Parties, their respective facilities and/or the respective services they provide. 1.2 "Applicable Reliability Council" shall mean the reliability council of NERC applicable to the Local Balancing Authority of the Transmission System in which the CUU is located. 1.3 "Applicable Reliability Standards" shall mean Reliability Standards approved by the Federal Energy Regulatory Commission (FERC) under section 215 of the Federal Power Act, as applicable. 1.4 "Breach" shall mean the failure of a Party to perform or observe any material term or condition of this Agreement and shall include, but not be limited to, the events described in Article 9.1. 1.5 `Breaching Party" shall mean a Party that is in Breach of this Agreement. 1.6 "Commercial Operation" shall mean the status of a Facility that has commenced generating electricity for sale, excluding electricity generated during Trial Operation, pursuant to its GIA, or has commenced transmitting electricity for sale, excluding electricity transmitted during Trial Operation, pursuant to its TCA. 1.7 "Commercial Operation Date" or "COD" of a Facility shall mean the date on which a Facility commences Commercial Operation pursuant to Appendix E to the applicable Generator Interconnection Agreement or Appendix C to the applicable Transmission Connection Agreement. 1.8 "Common Use Upgrade" or "CUU" shall mean an Interconnection Facility, Network Upgrade, System Protection Facility, or any other classified addition, alteration, or improvement on the Transmission System or the transmission system of an Affected System, not classified under Attachment FF as a Baseline Reliability Project, Market Efficiency Project, or Multi -Value Project, that is needed for the interconnection of multiple Customers' Facilities and which is the shared responsibility of such Customers. 1.9 "Confidential Information" shall mean any proprietary or commercially or competitively sensitive information, trade secret or information regarding a plan, specification, pattern, procedure, design, device, list, concept, policy or compilation relating to the present or Original Sheet No. 5 planned business of a Party, or any other information as specified in Article 12, which is designated as confidential by the Party supplying the information, whether conveyed orally, electronically, in writing, through inspection, or otherwise, that is received by another Parry. 1.10 "Customer" shall mean, for purposes of this Agreement, an Interconnection Customer as defined in the GIP set forth in Attachment X or an MHVDC Connection Customer as defined in the MHCP set forth in Attachment GGG. 1.11 "Default" shall mean the failure of a Breaching Party to cure its Breach in accordance with Article 9 of this Agreement. 1.12 "Effective Date" shall mean the date on which this Agreement becomes effective upon execution by the Parties subject to acceptance by the Commission, or if filed unexecuted, upon the date specified by the Commission. 1.13 "FERC" shall mean the Federal Energy Regulatory Commission, also known as Commission, or its successor. 1.14 "Force Majeure" shall mean any act of God, labor disturbance, act of the public enemy, war, insurrection, riot, fire, storm or flood, explosion, breakage or accident to machinery or equipment, any order, regulation or restriction imposed by governmental, military or lawfully established civilian authorities, or any other cause beyond a Party's control. A Force Majeure event does not include an act of negligence or intentional wrongdoing by the Parry claiming Force Majeure. 1.15 "Generator Interconnection Procedures" or "GIP" shall mean the interconnection procedures that are included in the Transmission Provider's Tariff. 1.16 "Good Utility Practice" shall mean any of the practices, methods and acts engaged in or approved by a significant portion of the electric industry during the relevant time period, or any of the practices, methods and acts which, in the exercise of reasonable judgment in light of the facts known to the time the decision was made, could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety and expedition. Good Utility Practice is not intended to be limited to the optimum practice, method, or act to the exclusion of all others, but rather to be acceptable practices, methods, or acts generally accepted in the region. 1.17 "Governmental Authority" shall mean any federal, state, local or other governmental regulatory or administrative agency, court, commission, department, board, or other governmental subdivision, legislature, rulemaking board, tribunal, or other governmental authority having jurisdiction over the Parties, their respective facilities, or the respective services they provide, and exercising or entitled to exercise any administrative, executive, police, or taxing authority or power; provided, however, that such term does not include Customer, Transmission Provider, Transmission Owner, or any Affiliate thereof. Original Sheet No. 6 1.18 "In -Service Date" shall mean the date upon which Transmission Owner reasonably expects it will have completed the CUU. 1.19 "Interconnection Agreement" or "GIA" shall mean the applicable Generator Interconnection Agreement by and between Transmission Provider, corresponding transmission owner, and Customer and reported in MISO's Electronic Quarterly Reports. 1.20 "Local Balancing Authority" shall mean an operational entity or a Joint Registration Organization which is (i) responsible for compliance with the subset of NERC Balancing Authority Reliability Standards defined in the Balancing Authority Agreement for its local area within the MISO Balancing Authority Area, (ii) a Party to Balancing Authority Agreement, excluding MISO, and (iii) shown in Appendix A to the Balancing Authority Agreement. 1.21 "Loss" shall mean any and all damages, losses, claims, including claims and actions relating to injury to or death of any person or damage to property, demand, suits, recoveries, costs and expenses, court costs, attorney fees, and all other obligations by or to third parties, arising out of or resulting from the other Party's performance, or non- performance of its obligations under this Agreement on behalf of the indemnifying Party, except in cases of gross negligence or intentional wrongdoing, by the indemnified Party. 1.22 "NERC" shall mean the North American Electric Reliability Corporation, or its successor organization. 1.23 "Network Upgrades" shall mean the additions, modifications, and upgrades to the Transmission System required at or beyond the point at which the Interconnection Facilities connect to the Transmission System or Distribution System, as applicable, to accommodate the interconnection of the Facilities to the Transmission System. 1.24 "Non -Breaching Party" shall mean a Party that is not in Breach of this Agreement with regard to a specific event of Breach by another Party. 1.25 "Reasonable Efforts" shall have the meaning as provided in the Tariff. 1.26 "Shared Network Upgrade" shall mean a Network Upgrade or Common Use Upgrade that is funded by an Customer(s) and also benefits other Customer(s) that are later identified as beneficiaries. 1.27 "System Protection Facilities" shall mean the equipment, including necessary protection signal communications equipment, required to protect (1) the Transmission System or other delivery systems or other generating systems from faults or other electrical disturbances occurring at the Facility and (2) the Facility from faults or other electrical system disturbances occurring on the Transmission System or on other delivery systems or other generating systems to which the Transmission System is directly connected. Original Sheet No. 7 1.28 "Tariff' shall mean the Transmission Provider's Tariff through which open access transmission service and Interconnection Service are offered, as filed with the Commission, and as amended or supplemented from time to time, or any successor tariff. 1.29 "Transmission Connection Agreement" or "TCA" shall mean the applicable Transmission Connection Agreement by and between Transmission Provider, , and Customer and reported in MISO's Electronic Quarterly Reports. 1.30 "Transmission System" shall mean the facilities owned by Transmission Owner and controlled or operated by Transmission Provider or Transmission Owner that are used to provide Transmission Service or Wholesale Distribution Service under the Tariff. Original Sheet No. 8 ARTICLE 2 TERM OF AGREEMENT 2.1 Effective Date. Subject to required regulatory authorizations, including, without limitation, acceptance by FERC under Section 205 of the Federal Power Act, this Agreement shall become effective on the date on which (i) this Agreement is made and entered into by the Parties, and (ii) the total amount of generation executing this Agreement meets or exceeds the value specified in Appendix A, Section 1.0. 2.2 Term. 2.2.1 General. This Agreement shall become effective as provided in Article 2.1 and shall continue in full force and effect until the earlier of (i) the final repayment by Transmission Owner of the refundable amount due from Transmission Owner to Customers under the terms of this Agreement for Transmission Owner's design, procurement, construction and installation of the CUU provided in Appendix A; (ii) the Parties agree to mutually terminate this Agreement; (iii) earlier termination as permitted or provided for under Appendix A of this Agreement; or (iv) all Customers terminate this Agreement after providing Transmission Provider and Transmission Owner with written notice at least sixty (60) Calendar Days prior to the proposed termination date, provided that Customers have no outstanding contractual obligations to Transmission Provider or Transmission Owner under this Agreement. No termination of this Agreement shall be effective until the Parties have complied with all Applicable Laws and Regulations applicable to such termination. The term of this Agreement may be adjusted upon mutual agreement of the Parties, if the Commercial Operation Date for the Generating Facility or the In -Service Date for the CUU is adjusted in accordance with the rules and procedures established by Transmission Provider. 2.2.2 Termination Upon Default. In the event of a Default by a Party, the Non - Breaching Party or Parties shall have the termination and removal rights described in Article 10.2 and in addition, if one or more Customers (but not all) are in Default, Transmission Owner or Transmission Provider may terminate the participation of the defaulting Customer(s) without terminating this entire Agreement; provided, however, if an event described in part (c) of Article 9.1 has not occurred, and provided the Default does not pose a threat to the reliability of the Transmission System, if an Customer is the Breaching Party then neither Transmission Provider nor Transmission Owner may terminate the participation of such Customer if such Customer (i) has undertaken, in accordance with Article 9.2, to cure the Breach that led to the Default and has failed to cure the Breach for reasons other than Customer's failure to diligently commence reasonable and appropriate steps to cure the Breach within the thirty (30) Calendar Days allowed by Article 9.2, and (ii) compensates Transmission Provider or Transmission Owner within thirty (30) Calendar Days for the amount of damage billed to such Customer by Transmission Provider or Transmission Owner for any damages, including costs and expenses, incurred by Transmission Provider or Transmission Original Sheet No. 9 Owner as a result of such Default. In the event of an occurrence described in part (c) of Article 9.1, and providing the Default does not pose a threat to the reliability of the Transmission System, the Non -Breaching Party or Parties shall not terminate this Agreement provided that the Breaching Party provided an assurance of payment acceptable to the Non -Breaching Party, and pays any applicable damages. Notwithstanding the foregoing, Default by one or more Customers shall not provide the other Customers either individually or in concert, with the right to terminate the entire Agreement. The non -Breaching Parties may, in concert, initiate the removal of an Customer that is a Defaulting Party from this Agreement. Transmission Provider shall not terminate this Agreement or the participation of any Customer without provision being made for Transmission Owner to be fully reimbursed for all of its costs incurred under this Agreement. An event of Default by an Customer will also result in the withdrawal of that Customer's associated Interconnection Request from the Transmission Provider's queue and Transmission Provider may declare a breach under Customer's related GIA, if any. 2.2.3 Consequences of Termination. In the event of a termination by or of any Parry, other than a termination by Customer due to a Breach by Transmission Owner, each Customer whose participation in this Agreement is terminated must pay to the Transmission Owner the Customer's proportionate share of all amounts still due and payable for construction and installation of the CUU (including, without limitation, any equipment ordered related to such construction), plus all out-of-pocket expenses incurred by Transmission Owner in connection with the construction and installation of the CUU, through the date of termination and, in the event of the termination of the entire Agreement, any actual costs which Transmission Owner (A) reasonably incurs in winding up work and construction demobilization and (B) reasonably incurs to ensure the safety of persons and property and the integrity and safe and reliable operation of the Transmission System. Transmission Owner agrees to use Reasonable Efforts to minimize such costs. The cost responsibility of other Customers shall be adjusted, as necessary, based on the payments by an Customer that is terminated from the Agreement. An Customer's irrevocable security will not be refunded in the event Customer is terminated from the Agreement, unless otherwise provided for in Article 6.1. Excess security will be refunded or released if any funds remain when the CUU is placed in service or if Transmission Provider determines that the CUU is no longer needed. The irrevocable security of a terminated Customer will be applied to the terminated Customer's proportionate share of the cost of the CUU. Other Customers that are parties to the Agreement will share the remaining CUU costs proportionately. 2.2.4 Material Adverse Change. In the event of a material change in law or regulation that adversely affects, or may reasonably be expected to adversely affect a Party's rights and/or obligations under this Agreement, the Parties shall negotiate in good Original Sheet No. 10 faith any amendments to this Agreement necessary to adapt the terms of this Agreement to such change in law or regulation, and Transmission Provider shall file such amendments with FERC. If, within sixty (60) Calendar Days after the occurrence of any event described in this Article 2.2.4, the Parties are unable to reach agreement as to any necessary amendments, the Parties may proceed under Article 14 to resolve any disputes related thereto; Transmission Provider and/or Transmission Owner shall have the right to make a unilateral filing with FERC to modify this Agreement pursuant to Section 205 or any other applicable provision of the Federal Power Act and FERC's rules and regulations thereunder, and Customer shall have the right to make a unilateral filing with FERC to modify this Agreement pursuant to Section 206 or any other applicable provision of the Federal Power Act and FERC's rules and regulations thereunder; provided that a Parry shall have the right to protest any such filing by another Party and to participate fully in any proceeding before FERC in which such modifications may be considered. If a Party is unable to fully perform this Agreement due to the occurrence of an event described in this Article 2.2.4 and such inability is not based on economic reasons, such Parry shall not be deemed to be in Default of its obligations under this Agreement, provided that such Parry is seeking dispute resolution under Article 14 or before FERC, to the extent that (i) such Parry is unable to perform as a result of such an event and (ii) such Party acts in accordance with its obligations under this Article 2.2.4. A material change in law or regulation affecting an Customer's ability to perform under this Agreement will not suspend any other Customer's obligations to perform under this Agreement. 2.2.5 Transmission Provider's Option to Add New Interconnection Requests and Restudy. In addition to the Transmission Provider's right to make a unilateral filing with FERC to modify this Agreement with respect to any rates, terms and conditions, charges, classifications of service, rule or regulation under Section 205 or any other applicable provision of the Federal Power Act and FERC's rules and regulations thereunder, Transmission Provider may, at its sole option after reasonable consultation with Transmission Owner, add other interconnection customers as parties to this Agreement at any time, provided that their generator interconnections impact the same CUU, the inclusion of those parties in this Agreement is consistent with Good Utility Practice, and provided that the addition is made prior to the completion of the CUU and the CUU scope, completion schedule or cost is not changed unless the change is mutually agreed to by all the Parties, and such agreement shall not be unreasonably withheld or delayed. The addition of such other parties to this Agreement will result in the reallocation of costs among Customers and may result in the need for a restudy as provided under this Article 2.2.5. Each new Customer added as a parry must provide irrevocable security pursuant to Article 6.1. As a condition of executing this Agreement, each Customer agrees that additional parties may be added to this Agreement without the renegotiation or prior consent of Customers, provided that such addition is consistent with other provisions of this Agreement. This provision does not affect each Customer's right to seek dispute resolution under Article 14 or to make a Original Sheet No. 11 unilateral filing with FERC to modify this Agreement pursuant to Section 206 or any other applicable provision of the Federal Power Act and FERC's rules and regulations thereunder. In the event one or more Interconnection Requests represented by Customers under this Agreement either withdraws from the Agreement or fails to cure a Breach resulting in termination of the Interconnection Request from this Agreement, Transmission Provider shall attempt to add similarly situated Interconnection Request(s), pursuant to this Article 2.2.5, to replace the withdrawn or terminated Interconnection Request(s). If Transmission Provider is unable to identify similarly situated Interconnection Request(s), and -Transmission Provider deems it likely that another CUU would be more prudent, Transmission Provider may, in its sole discretion after reasonable consultation with Transmission Owner, reevaluate the need for the Common Use Upgrade, and if still required, reallocate the cost and responsibility for any Common Use Upgrade without a restudy and provide notice to each Customer. The Parties agree to amend Appendix A to this MPFCA to reflect the results of any cost reallocation required under this Article 2.2.5. If an Interconnection Request is withdrawn or terminated and Transmission Provider does not replace it, Transmission Provider will provide the remaining Customers with an analysis stating whether or not the same CUU is needed and the re -allocated costs for which each Customer is responsible. 2.3 Regulatory Filing. In accordance with Applicable Laws and Regulations, Transmission Provider shall file this Agreement, and any amendment to this Agreement with FERC as a service agreement under the Tariff. Each Customer that has executed this Agreement or any amendment to this Agreement shall not protest this Agreement or the amendment, shall reasonably cooperate with Transmission Provider with respect to such filing and shall provide any information, including the rendering of testimony or pleadings, as applicable, reasonably requested by Transmission Provider, to the extent reasonably needed to comply with applicable regulatory requirements. 2.4 Survival. The applicable provisions of this Agreement shall continue in effect after expiration, cancellation, or termination hereof to the extent necessary to provide for final billings, billing adjustments, and the determination and enforcement of liability and indemnification obligations arising from acts or events that occurred while this Agreement was in effect. 2.5 Termination Obligations. Upon any termination pursuant to this Agreement or termination of the participation in this Agreement of a Customer, each Customer shall be responsible for the payment of its proportionate share of all costs or other contractual obligations incurred prior to the termination date including previously incurred capital costs, penalties for early termination, costs of removal and site restoration. The cost responsibility of the other Customers shall be adjusted as necessary. ARTICLE 3 Original Sheet No. 12 CONSTRUCTION OF THE COMMON USE UPGRADES 3.1 Construction. 3.1.1 Transmission Owner Obligations. Transmission Owner shall (or shall cause such action to) design, procure, construct and install, Customers shall pay, consistent with Article 3.2, the cost of the CUU identified in Appendix A. The CUU designed, procured, constructed and installed by Transmission Owner pursuant to this Agreement shall satisfy all requirements of applicable safety and/or engineering codes, including those requirements of Transmission Owner and Transmission Provider, and comply with Good Utility Practice, and further, shall satisfy all Applicable Laws and Regulations. 3.1.2 Right to Suspend Due to Inadequate Funding. Transmission Owner reserves the right, upon written notice to Customers, to suspend, at any time, work by Transmission Owner and the incurrence of additional expenses associated with the construction and installation of the CUU, upon the occurrence of a Default, including a Default caused by an Customer's failure to provide irrevocable security pursuant to Article 6.1 that the remaining Customer(s) does not (do not) cure pursuant to Article 9. Any form of suspension by Transmission Owner shall not be barred by Articles 2.2.2, 2.2.3 or 9.2.2, nor shall it affect Transmission Owner's right to terminate the work or this Agreement pursuant to Article 10. In such events, Customers shall be responsible for costs which Transmission Owner incurs as set forth in Article 2.2.3. 3.1.3 Construction Status. Transmission Owner shall keep Customers and Transmission Provider advised periodically as to the progress of its respective design, procurement and construction efforts as described in Appendix A. An Customer may, at any time, request a progress report from Transmission Owner, with a copy to be provided to all other Parties. If, at any time, an Customer determines that the completion of the CUU will not be required until after the specified In -Service Date, such Customer will provide written notice to all other Parties of such later date for the completion of the CUU. Transmission Owner may delay the In -Service Date of the CUU accordingly, but only if agreed to by all other Customers. 3.1.4 Timely Completion. Transmission Owner shall use Reasonable Efforts to design, procure, construct, install, and test the CUU in accordance with the schedule set forth in Appendix A, which schedule may be revised from time to time by mutual agreement of the Parties. If any event occurs that will affect the time for completion of the CUU, or the ability to complete any of them, Transmission Owner and/or Transmission Provider shall promptly notify all other Parties. In such circumstances, Transmission Provider shall, within fifteen (15) Calendar Days of such notice, convene a technical meeting with Customers and Transmission Owner to evaluate the alternatives available to Customers. Transmission Owner and/or Transmission Provider shall also make available to Original Sheet No. 13 Customers all studies and work papers related to the event and corresponding delay, including all information that is in the possession of Transmission Provider or Transmission Owner that is reasonably needed by Customers to evaluate alternatives. Transmission Owner shall, at any Customer's request and expense, use Reasonable Efforts to accelerate its work under this Agreement to meet the schedule set forth in Appendix A, provided that (1) Customer(s) jointly authorize such actions, such authorizations to be withheld, conditioned or delayed by a given Customer only if it can demonstrate that the acceleration would have a material adverse effect on it, and (2) the requesting Customer funds the costs associated therewith in advance or all Customers agree in advance to fund such costs based on such other allocation method as they may adopt. 3.2 Interconnection Costs and Credits. 3.2.1 Costs. Customers shall pay to Transmission Owner costs associated with seeking and obtaining all necessary approvals and of designing, engineering, constructing, and testing the CUU, as identified in Appendix A, in accordance with the cost recovery method provided herein. Except as expressly otherwise agreed, Customers shall be collectively responsible for these costs, based on their proportionate share of cost responsibility, as provided in Appendix A. Transmission Owner shall provide Transmission Provider and Customers with written notice pursuant to Article 15 if Transmission Owner elects to fund the capital for the Network Upgrades and Transmission Owner's System Protection Facilities; otherwise, such facilities, if any, shall be solely funded by the applicable Customer. Transmission Owner shall install at Customers' expense any Transmission Owner's System Protection Facilities that may be required on the Transmission Owner's Interconnection Facilities or the Transmission Owner's transmission or distribution facilities as a result of the interconnection of the Facility and the Customers' Interconnection Facilities. In the event the CUU is determined to be a Shared Network Upgrade, Transmission Owner and Transmission Provider shall not be responsible for funding obligations related to the Shared Network Upgrade under separate GIAs. Transmission Provider shall only be responsible to reimburse those funds to Customers that Transmission Provider receives pursuant to separate GIAs. 3.2.1.1 Lands of Other Property Owners. If any part of the Transmission Owner's Interconnection Facilities, Network Upgrades, System Protection Facilities, and/or Distribution Upgrades is to be installed on property owned by persons other than Customer(s) or Transmission Owner, Transmission Owner shall at Customer(s)' expense use efforts, similar in nature and extent to those that it typically undertakes on its own behalf or on behalf of its Affiliates, including use of its eminent domain authority to the extent permitted and consistent with Applicable Laws and Regulations Original Sheet No. 14 and, to the extent consistent with such Applicable Laws and Regulations, to procure from such persons any rights of use, licenses, rights of way and easements that are necessary to construct, operate, maintain, test, inspect, replace or remove the Transmission Owner's Interconnection Facilities, Network Upgrades, System Protection Facilities, and/or Distribution Upgrades upon such property. 3.2.2 Credits. 3.2.2.1 Repayment. Each Customer shall be entitled to a cash repayment by Transmission Owner that owns the CUU, of the reimbursable portion of the amount such Customer paid to Transmission Owner, if any, for the CUU, as provided under Attachment FF of the Transmission Provider Tariff, as detailed in Appendix A, and including any tax gross -up or other tax -related payments associated with the repayable portion of the CUU, and not repaid to Customer pursuant to Article 3.3.1 or otherwise, to be paid to Customer on a dollar -for -dollar basis for the non -usage sensitive portion of transmission charges, as payments are made under the Tariff for Transmission Services with respect to the Generating Facility. Any repayment shall include interest calculated in accordance with the methodology set forth in FERC's regulations at 18 C.F.R. § 35.19 a(a)(2)(iii) from the date of any payment for the CUU through the date on which Customer receives a repayment of such payment pursuant to this subparagraph. Interest shall not accrue during periods in which Transmission Owner has suspended construction pursuant to Article 3.1.2 or the Network Upgrades have been determined not to be needed pursuant to this Article 3.2.2.1. Customer may assign such repayment rights to any person. To the extent one or more of the Generating Facilities are designated as Network Resource(s) under the Tariff, or if there are otherwise no incremental payments for Transmission Service resulting from the use of such Generating Facility(ies), and in the absence of another mutually agreeable payment schedule, any repayments provided under Attachment FF shall be established equal to the applicable rate for Firm Point -To - Point Transmission Service for the pricing zone where the Network Load using such Generating Facility(ies) is located multiplied by the portion of the demonstrated output of the Generating Facility(ies) designated as Network Resource(s) by the applicable Network Customer(s) or, in the absence of such designation, equal to the monthly firm single system -wide rate defined under Schedule 7 of the Tariff multiplied by the portion of the demonstrated output of the Generating Facility(ies) under contract to Network Customer(s) and consistent with studies pursuant to Section 3.2.2.2 of the GIP. Original Sheet No. 15 3.2.2.2 Amount. Transmission credits will be based on each Customer's payments, which will be based on the final, actual cost of completing the CUU as provided by the final invoice prepared by Transmission Owner pursuant to Article 6.4 of this Agreement. Any repayment made pursuant to Article 3.2.2.1 to a given Customer shall be based on (i) the Customer's final, actual cost -based payments after any true -up amounts have been paid pursuant to Article 6.4, and (ii) interest calculated in accordance with the methodology set forth in FERC's regulations at 18 C.F.R. §35.19a(a)(2)(iii) from the date of any payment for CUU through the date on which Customer receives a repayment of such payment pursuant to this Article 3.2 until refundable payments have been fully reimbursed. 3.2.2.3 Alternative Payment Schedule. Notwithstanding the foregoing, as applicable and consistent with the provisions of Attachment FF of the Tariff, any Customer, Transmission Provider, and Transmission Owner, may adopt any alternative payment schedule that is mutually agreeable so long as Transmission Owner takes one of the following actions no later than five (5) years from the Commercial Operation Date: (1) Return to that Customer the refundable portion of any amounts advanced by that Customer for CUU not previously repaid, or (2) declare in writing that Transmission Owner will continue to provide payments to that Customer on a dollar -for -dollar basis for the non -usage sensitive portion of transmission charges, or develop an alternative schedule that is mutually agreeable and provides for the return of the refundable portion of all amounts advanced by that Customer for CUU not previously repaid; however, full reimbursement of the refundable portion of such Customer's payments shall not extend beyond twenty (20) years from the Commercial Operation Date. 3.2.2.4 Rights not Relinquished. Notwithstanding any other provision of this Agreement, nothing herein shall be construed as relinquishing or foreclosing any rights, including but not limited to firm transmission rights, capacity rights, transmission congestion rights, or transmission credits, that each Customer shall be entitled to, now or in the future under any other agreement or tariff as a result of, or otherwise associated with, the transmission capacity, if any, created by the CUU, including the right to obtain refunds or transmission credits for transmission service that is not associated with the Generating Facility. 3.3 Taxes. 3.3.1 Indemnification for Contributions in Aid of Construction. The Parties intend that all payments made by Customers to Transmission Owner for the installation of the CUU shall be non-taxable contributions to capital in accordance with the Internal Revenue Code and any applicable state tax laws and shall not be taxable as contributions in aid of construction under the Internal Revenue Code and any Original Sheet No. 16 applicable state tax laws. With regard only to such contributions, Transmission Owner shall not include a gross -up for income taxes in the amounts it charges Customers for the installation of the CUU unless (i) Transmission Owner has determined, in good faith, that the payments or property transfers made by Customers to Transmission Owner should be reported as income subject to taxation or (ii) any Governmental Authority directs Transmission Owner to report payments or property as income subject to taxation; provided, however, that Transmission Owner may require Customers to provide security for Interconnection Facilities, in a form reasonably acceptable to Transmission Owner (such as a parental guarantee or a letter of credit), in an amount equal to the cost consequences or any current tax liability under this Article. Customers shall reimburse Transmission Owner for such costs on a fully grossed -up basis, in accordance with this Article within thirty (30) Calendar Days of receiving written notification from Transmission Owner of the amount due, including detail about how the amount was calculated. The indemnification obligation shall terminate at the earlier of (1) the expiration of the ten-year testing period and the applicable statute of limitation, as it may be extended by Transmission Owner upon request of the IRS, to keep these years open for audit or adjustment, or (2) the occurrence of a subsequent taxable event and the payment of any related indemnification obligations as contemplated by this Article. Notwithstanding the foregoing provisions of this Article 3.3.1, and to the extent permitted by law, to the extent that the receipt of such payments by Transmission Owner is determined by any Governmental Authority to constitute income by Transmission Owner subject to taxation, Customers shall jointly and severally, but preserving all rights of contribution, protect, indemnify and hold harmless Transmission Owner and its Affiliates, from all claims by any such Governmental Authority for any tax, interest and/or penalties associated with such determination. Upon receiving written notification of such determination from the Governmental Authority, Transmission Owner shall provide each Customer with written notification within thirty (30) Calendar Days of such determination and notification. Transmission Owner, upon the timely written request by any one or more of Customers and at the expense of such requesting Customer(s), shall appeal, protest, seek abatement of, or otherwise oppose such determination. Transmission Owner reserves the right to make all decisions with regard to the prosecution of such appeal, protest, abatement or other contest, including the compromise or settlement of the claim; provided that Transmission Owner shall cooperate and consult in good faith with the requesting Customer(s) regarding the conduct of such contest. Customer(s) who requested the action shall advance to Transmission Owner on a periodic basis as requested by Transmission Owner the estimated cost of prosecuting such appeal, protest, abatement or other contest. Customer(s) shall not be required to pay Transmission Owner for the tax, interest and/or penalties prior to the seventh (7th) Calendar Day before the date on which Transmission Owner (i) is required to pay the tax, interest and/or penalties or other amount in lieu thereof pursuant to a compromise or settlement of the appeal, protest, abatement or other contest; (ii) is required to pay the tax, interest and/or Original Sheet No. 17 penalties as the result of a final, non -appealable order by a Governmental Authority; or (iii) is required to pay the tax, interest and/or penalties as a prerequisite to an appeal, protest, abatement or other contest. In the event such appeal, protest, abatement or other contest results in a determination that Transmission Owner is not liable for any portion of any tax, interest and/or penalties for which any Customer has already made payment to Transmission Owner, Transmission Owner shall promptly refund to such Customer any payment attributable to the amount determined to be non-taxable, plus any interest or other payments Transmission Owner receives or to which Transmission Owner may be entitled with respect to such payment. In accordance with Article 6, each Customer shall provide Transmission Owner with credit assurances sufficient to meet such Customer's estimated liability for reimbursement of Transmission Owner for taxes, interest and/or penalties under this Section 3.3.1. Such estimated liability shall be stated in Appendix A. To the extent that Transmission Owner is a limited liability company and not a corporation, and has elected to be taxed as a partnership, then the following shall apply: Transmission Owner represents, and the Parties acknowledge, that Transmission Owner is a limited liability company and is treated as a partnership for federal income tax purposes. Any payment made by Customer to Transmission Owner for the CUU is to be treated as an upfront payment in accordance with Rev Proc 2005-35. It is anticipated by the Parties that certain amounts paid by each Customer to Transmission Owner for the CUU will be reimbursed to such Customer in accordance with the terms of this Agreement, provided such Customer fulfills its obligations under this Agreement. 3.3.2 Private Letter Ruling. At the request and expense of any Customer(s), Transmission Owner shall file with the IRS a request for a private letter ruling as to whether any property transferred or sums paid, or to be paid, by such Customer(s) to Transmission Owner under this Agreement are subject to federal income taxation. Each Customer desiring such a request will prepare the initial draft of the request for a private letter ruling, and will certify under penalties of perjury that all facts represented in such request are true and accurate to the best of such Customer's knowledge. Transmission Owner and the affected Customer(s) shall cooperate in good faith with respect to the submission of such request. 3.3.3 Other Taxes. Upon the timely request by any one or more of Customers, and at the sole expense of such Customer(s), Transmission Owner shall appeal, protest, seek abatement of, or otherwise contest any tax (other than federal or state income tax) asserted or assessed against Transmission Owner for which such Customer(s) may be required to reimburse Transmission Owner under the terms of this Agreement. Customer(s) who requested the action shall pay to Transmission Owner on a periodic basis, as invoiced by Transmission Owner, Transmission Owner's documented reasonable costs of prosecuting such appeal, protest, abatement, or other contest. The requesting Customer(s) and Transmission Original Sheet No. 18 Owner shall cooperate in good faith with respect to any such contest. Unless the payment of such taxes is a prerequisite to an appeal or abatement or cannot be deferred, no amount shall be payable by Customers to Transmission Owner for such taxes until they are assessed by a final, non -appealable order by any court or agency of competent jurisdiction. In the event that a tax payment is withheld and ultimately due and payable after appeal, Customers will be responsible for all taxes, interest and penalties, other than penalties attributable to any delay caused by Transmission Owner. Each Party shall cooperate with the other Parties to maintain each Party's tax status. Nothing in this Agreement is intended to adversely affect any Party's tax-exempt status with respect to the issuance of bonds including, but not limited to, Local Furnishing Bonds. ARTICLE 4 FORCE MAJEURE 4.1 Notice. The Party unable to carry out an obligation imposed on it by this Agreement due to a Force Majeure event shall notify the other Parties in writing or verbally with subsequent notice in writing within a reasonable time after the occurrence of the cause relied on. 4.2 Duration of Force Majeure. Except as set forth in Article 4.3, no Party will be considered in Default as to any obligation under this Agreement if prevented from fulfilling the obligation due to an event of Force Majeure. A Parry shall not be responsible for any non-performance or be considered in Breach or Default under this Agreement due to Force Majeure. A Party shall be excused from whatever performance is affected for only the duration of the Force Majeure event and while the Parry exercises Reasonable Efforts to alleviate such situation. As soon as the non -performing Party is able to resume performance of its obligations excused as a result of the occurrence of Force Majeure, such Parry shall give prompt notice thereof to the other Parties. 4.3 Obligation to Make Payments. Any Party's obligation to make payments or to provide and maintain irrevocable security shall not be suspended by Force Majeure. ARTICLE 5 INFORMATION REPORTING 5.1 Information Reporting Obligations. Each Parry shall, in accordance with Good Utility Practice, promptly provide to the other Parties all relevant information, documents, or data regarding the Party's facilities and equipment which may reasonably be expected to pertain to the reliability of any other Party's facilities and equipment and which has been reasonably requested by such other Party. 5.2 Non -Force Majeure Reporting. A Parry shall notify the other Parties when it becomes aware of its inability to comply with the provisions of this Agreement for a reason other than Force Majeure. The Parties agree to cooperate with each other and provide necessary information regarding such inability to comply, including, but not limited to, Original Sheet No. 19 the date, duration, reason for the inability to comply, and corrective actions taken or planned to be taken with respect to such inability to comply. In the event of Force Majeure, a Parry unable to comply with the provisions of this Agreement shall notify the other Parties in accordance with the provisions of Article 4. ARTICLE 6 CREDITWORTHINESS, BILLING AND PAYMENTS 6.1 Creditworthiness. By the earlier of (i) thirty (30) Calendar Days prior to the due date for Customer's first payment under the payment schedule specified in Appendix A or (ii) the first date specified in Appendix A for the ordering of equipment by Transmission Owner for installing the CUU, each Customer shall provide Transmission Owner with a form of irrevocable security reasonably acceptable to Transmission Owner as an adequate assurance of creditworthiness for Customer's proportionate share of responsibility for the CUU. A Customer's irrevocable security will not be refunded in the event Customer is terminated from the Agreement, except as provided in this Article. Pursuant to Article 2.2.5, MISO may restudy any time that a Customer is terminated from the Agreement. If a Customer fails to provide acceptable irrevocable security pursuant to Article 6.1, Customer will be terminated from this Agreement, its Interconnection Request will be withdrawn from the Transmission Provider's interconnection queue, and Transmission Provider may declare a breach under Customer's related GIA, if any, and seek termination thereof. If a Customer is terminated from the Agreement, Transmission Owner will retain the irrevocable security of all remaining Customers, and Transmission Provider will determine whether to add additional interconnection customer(s) as parties to this Agreement pursuant to Article 2.2.5. Additionally, whether or not an additional Customer is added to this Agreement, Transmission Provider shall adjust the proportionate share of the costs to be borne by the remaining Customers when a Customer has been terminated from this Agreement. If the addition of a Customer to the Agreement results in a reduction of cost estimates, the cost estimates of all remaining Customers will be reduced proportionately. It is expressly understood that an Customers' proportionate share of the responsibility for the costs of the CUU may increase or decrease. If such cost adjustment causes the cost estimate for any of the remaining Customers to increase by more than twenty-five (25) percent above the cost estimate set forth in Appendix A, any such Customer whose proportionate share of the cost estimate increases by more than twenty-five (25) percent may withdraw from the Agreement within thirty (30) Calendar Days of the date that Transmission Provider notifies Customer of the redetermination of its proportionate share of the cost responsibility. If a Customer withdraws pursuant to this option, the unused portion of its irrevocable security will be released or refunded, but Transmission Provider may declare a breach under Customer's related GIA, if any, and its Interconnection Request will be withdrawn from the Transmission Provider's interconnection queue. If a Customer's withdrawal under this option causes the cost estimate for any of the remaining Customers to increase by more than twenty-five (25) percent from the estimate in Appendix A, that Customer may also withdraw pursuant to this paragraph. Original Sheet No. 20 When a Customer withdraws from the Agreement as a result of an increase of more than twenty-five (25) percent in its cost estimate pursuant to the paragraph above, Transmission Provider will notify all Parties to the Agreement of the withdrawal and will provide a revised cost estimate of each Customer's responsibility for the cost of the CUU within thirty (30) Calendar Days. Within thirty (30) Calendar Days of receiving such notification, each remaining Customer(s) must either withdraw or submit additional security necessary to cover its revised cost responsibility. Failure to provide such additional security will be a Breach of the Agreement and any Customer that does not provide additional security within thirty (30) Calendar Days of receiving the cost allocation notice will be deemed withdrawn from the Agreement and Transmission Provider may declare a breach under Customer's related GIA, if any, and its Interconnection Request will be withdrawn from the Transmission Provider's interconnection queue. If such cost adjustment causes the cost estimate for any of the remaining Customers to increase by more than twenty-five (25) percent above the cost estimate provided in response to the prior withdrawal, MISO will perform a restudy of the CUU unless the parties agree to proceed without a restudy. If the adequate assurance is a parental guarantee or surety bond, it must be made by an entity that meets the creditworthiness requirements of Transmission Owner, have terms and conditions reasonably acceptable to Transmission Owner and guarantee payment of the amount specified in the next paragraph of this Article 6.1. If the adequate assurance is a letter of credit, it must be issued by a bank reasonably acceptable to Transmission Owner, specify a reasonable expiration date and may provide that the maximum amount available to be drawn under the letter shall reduce on a monthly basis in accordance with the monthly payment schedule. The surety bond must be issued by an insurer reasonably acceptable to Transmission Owner, specify a reasonable expiration date and may provide that the maximum amount assured under the bond shall reduce on a monthly basis in accordance with the monthly payment schedule. After the CUU has been placed in service and until Customers have fully compensated Transmission Owner for construction of the CUU, each Customer shall, subject to the standards of this Article 6.1, maintain a parental guarantee, surety bond, letter of credit, or some other credit assurance sufficient to meet its monthly payment obligation under Article 3.2.1. Each Customer's estimated liability under Article 3.2.1 is stated in Appendix A. If a Customer provides the entire payment it must remit under the payment schedule as of the date of first payment, it need not provide additional security unless cost allocation changes pursuant to this Article 6.1 or additional funds are required by Transmission Owner to complete the CUU and allocated among Customers according to their proportionate shares. 6.2 Invoice. Transmission Owner shall submit to each Customer, on a monthly basis, invoices of amounts due, if any, for the preceding month. Each invoice shall state the month to which the invoice applies and fully describe the services and equipment provided. The Parties may discharge mutual debts and payment obligations due and owing to each other on the same date through netting, in which case all amounts a Party owes to another Party under this Agreement, including interest payments or credits, shall be netted so that only the net amount remaining due shall be paid by the owing Parry. Original Sheet No. 21 6.3 Payment. Invoices shall be rendered to the paying Party at the address specified by the Parties. The Party receiving the invoice shall pay the invoice within thirty (30) Calendar Days of receipt. All payments shall be made in immediately available funds payable to the other Party, or by wire transfer to a bank named and account designated by the invoicing Party. Payment of invoices by a Party will not constitute a waiver of any rights or claims that Party may have under this Agreement. 6.4 Final Invoice. Within six (6) months after completion of the construction of the CUU, unless otherwise agreed to under Appendix A, Transmission Owner shall provide an invoice of the final cost of the construction of the CUU and shall set forth such costs in sufficient detail to enable each Customer to compare the actual costs with the estimates and to ascertain deviations, if any, from the cost estimates. Transmission Owner shall refund, with interest (calculated in accordance with 18 C.F.R. Section 35.19a(a)(2)(iii)), to each Customer any amount by which the actual payment by Customer for estimated costs exceeds the actual costs of construction within thirty (30) Calendar Days of the issuance of such final construction invoice. 6.5 Interest. Interest on any unpaid amounts shall be calculated in accordance with 18 C.F.R. § 35.19a(a)(2)(iii). 6.6 Payment During Dispute. In the event of a billing dispute among the Parties, Transmission Owner shall continue to construct the CUU as long as each Customer: (i) continues to make all payments not in dispute; and (ii) pays to Transmission Provider or Transmission Owner or into an independent escrow account the portion of the invoice in dispute, pending resolution of such dispute. If any Customer fails to meet these two requirements, then Transmission Provider may or, at Transmission Owner's request upon an Customer's failure to pay Transmission Owner, shall provide notice to such Customer of a Default pursuant to Article 9. Within thirty (30) Calendar Days after the resolution of the dispute, the Party that owes money to another Party shall pay the amount due with interest calculated in accord with the methodology set forth in 18 C.F.R. § 35.19a(a)(2)(iii). ARTICLE 7 ASSIGNMENT 7.1 Assignment. This Agreement may be assigned by any Parry only with the written consent of Transmission Owner and Transmission Provider; provided that a Parry may assign this Agreement without the consent of the other Parties to any affiliate of the assigning Parry with an equal or greater credit rating and with the legal authority and operational ability to satisfy the obligations of the assigning Party under this Agreement; and provided further that any Customer shall have the right to assign this Agreement, without the consent of any Party, for collateral security purposes to aid in providing financing for its Generating Facility, provided that such Customer will promptly notify Transmission Provider and Transmission Owner of any such assignment. Any financing arrangement entered into by any Customer pursuant to this Article will provide that prior to or upon the exercise of the secured Party's, trustee's or assignment rights pursuant to Original Sheet No. 22 said arrangement, the secured creditor, the trustee or mortgagee will notify Transmission Provider and Transmission Owner of the date and particulars of any such exercise of assignment right(s), including providing Transmission Provider and Transmission Owner with proof that it meets the requirements of Article 6.1. Any attempted assignment that violates this Article is void and ineffective. Any assignment under this Agreement shall not relieve a Party of its obligations, nor shall a Party's obligations be enlarged, in whole or in part, by reason thereof. Where required, consent to assignment will not be unreasonably withheld, conditioned or delayed. ARTICLE 8 INDEMNITY 8.1 General. To the extent permitted by law, a Party (the "Indemnifying Party") shall at all times indemnify, defend, and hold the other Parties (each an "Indemnified Party") harmless from Loss, only as provided in the Tariff. 8.1.1 Indemnified Party. If an Indemnified Party is entitled to indemnification under this Article 8 as a result of a claim by a third party, and the Indemnifying Party fails, after notice and reasonable opportunity to proceed under Article 8.1, to assume the defense of such claim, such Indemnified Party may at the expense of the Indemnifying Party contest, settle or consent to the entry of any judgment with respect to, or pay in full, such claim. 8.1.2 Indemnifying Party. If an Indemnifying Party is obligated to indemnify and hold any Indemnified Parry harmless under this Article 8, the amount owing to the Indemnified Party shall be the amount of such Indemnified Party's actual Loss, net of any insurance or other recovery. 8.1.3 Indemnity Procedures. Promptly after receipt by an Indemnified Parry of any claim or notice of the commencement of any action or administrative or legal proceeding or investigation as to which the indemnity provided for in Article 8.1 may apply, the Indemnified Party shall notify the Indemnifying Party of such fact. Any failure of or delay in such notification shall not affect a Party's indemnification obligation unless such failure or delay is materially prejudicial to the Indemnifying Party. The Indemnifying Party shall have the right to assume the defense thereof with counsel designated by such Indemnifying Party and reasonably satisfactory to the Indemnified Party. If the defendants in any such action include one or more Indemnified Parties and the Indemnifying Party and if the Indemnified Parry reasonably concludes that there may be legal defenses available to it and/or other Indemnified Parties which are different from or additional to those available to the Indemnifying Parry, the Indemnified Parry shall have the right to select separate counsel to assert such legal defenses and to otherwise participate in the defense of such action on its own behalf. In such instances, the Indemnifying Parry shall only be required to pay the fees and expenses of one additional attorney to Original Sheet No. 23 represent an Indemnified Parry or Indemnified Parties having such differing or additional legal defenses. The Indemnified Party shall be entitled, at its expense, to participate in any such action, suit or proceeding, the defense of which has been assumed by the Indemnifying Parry. Notwithstanding the foregoing, the Indemnifying Parry (i) shall not be entitled to assume and control the defense of any such action, suit or proceedings if and to the extent that, in the opinion of the Indemnified Party and its counsel, such action, suit or proceeding involves the potential imposition of criminal liability on the Indemnified Party, or there exists a conflict or adversity of interest between the Indemnified Party and the Indemnifying Parry, in such event the Indemnifying Party shall pay the reasonable expenses of the Indemnified Party, and (ii) shall not settle or consent to the entry of any judgment in any action, suit or proceeding without the consent of the Indemnified Party, which shall not be reasonably withheld, conditioned or delayed. 8.2 Consequential Damages. In no event shall any Parry be liable to any other Party under any provision of this Agreement for any losses, damages, costs or expenses for any special, indirect, incidental, consequential, or punitive damages, including but not limited to loss of profit or revenue, loss of the use of equipment, cost of capital, cost of temporary equipment or services, whether based in whole or in part in contract, in tort, including negligence, strict liability, or any other theory of liability; provided, however, that damages for which a Party may be liable to another Parry under another agreement will not be considered to be special, indirect, incidental, or consequential damages hereunder. ARTICLE 9 BREACH, CURE AND DEFAULT 9.1 Events of Breach. A Breach of this Agreement shall include: (a) The failure to pay any amount when due, including failure to provide appropriate irrevocable security, as applicable under Article 6; (b) The failure to comply with any material term or condition of this Agreement, including but not limited to any material Breach of a representation, warranty or covenant made in this Agreement; (c) If a Parry (i) is adjudicated bankrupt; (ii) files a voluntary petition in bankruptcy under any provision of any federal or state bankruptcy law or shall consent to the filing of any bankruptcy or reorganization petition against it under any similar law; (iii) makes a general assignment for the benefit of its creditors; or (iv) consents to the appointment of a receiver, trustee or liquidator; (d) Assignment of this Agreement in a manner inconsistent with the terms of this Agreement; Original Sheet No. 24 (e) Failure of a Party to provide such access rights, or a Party's attempt to revoke access or terminate such access rights, as provided under this Agreement or any related GIA; (f) Failure of a Party to provide information or data to another Party as required under this Agreement, provided the Party entitled to the information or data under this Agreement requires such information or data to satisfy its obligations under this Agreement. 9.2 Notice of Breach, Cure and Default. Upon the occurrence of an event of Breach, any Parry aggrieved by the Breach, when it becomes aware of the Breach, shall give written notice of the Breach to the Breaching Parry and to any other person representing a Parry to this Agreement identified in writing to the other Parties in advance. Upon receiving written notice of a Breach hereunder, the Breaching Party shall have a period to cure such Breach (sometimes hereinafter referred as "Cure Period") which shall be thirty (30) Calendar Days unless such Breach is due to an occurrence under Article 9.1(a) or (c) in which case the cure period will be five (5) Business Days. Such notice shall set forth, in reasonable detail, the nature of the Breach, and where known and applicable, the steps necessary to cure such Breach. 9.2.1 Upon the occurrence described in part (c) of Article 9.1, the Party experiencing such occurrence shall notify the other Parties in writing within five (5) Business Days after the commencement of such occurrence. 9.2.2 If the Breach is such that it cannot be cured within the Cure Period, the Breaching Parry will commence in good faith all steps as are reasonable and appropriate to cure the Breach within such Cure Period and thereafter diligently pursue such action to completion. In the event the Breaching Parry fails to: (A) cure the Breach, or to commence reasonable and appropriate steps to cure the Breach, within the Cure Period; or, (B) completely cure the Breach within sixty (60) Calendar Days if the Breach occurs pursuant to Article 9.1(b), (d), (e) or (f), the Breaching Party shall be in Default of this Agreement and the non -Breaching Parties may, at their option, (1) act in concert to amend the Agreement to remove an Customer that is in Default from this Agreement for cause and to make other changes as necessary or (2) either in concert or individually, take whatever action at law or in equity as may appear necessary or desirable to enforce the performance or observance of any rights, remedies, obligations, agreement, or covenants under this Agreement. Alternatively, if a Customer is the Breaching Parry and the Breach results from a failure to provide payments or security under Article 9.1, the other Customers, either individually or in concert, may cure the Breach by paying the amounts owed or by providing adequate security, without Original Sheet No. 25 waiver of contribution rights against Customer in Default. Such cure for the Breach of an Customer is subject to the reasonable consent of Transmission Provider and Transmission Owner. Transmission Owner may also cure such Breach by funding the proportionate share of the CUU costs related to the Breach of Customer. Transmission Owner must notify all parties that it will exercise this option within thirty (30) Calendar Days of notification that a Customer has failed to provide payments or security under Article 9.1. Transmission Owner may recover such costs as allowed by the Tariff until such time as, pursuant to Article 2.2.5, an interconnection customer(s) is allocated capacity of the CUU. 9.3 Rights in the Event of Default. Notwithstanding the foregoing, upon the occurrence of an event of Default, any non -Defaulting Party shall be entitled to exercise all rights and remedies it may have in equity or at law. ARTICLE 10 TERMINATION OF AGREEMENT 10.1 Expiration of Term. Except as otherwise specified in this Article 10, the Parties' obligations under this Agreement shall terminate at the conclusion of the term of this Agreement. 10.2 Termination and Removal. Subject to the limitations set forth in Article 10.3, in the event of a Default, termination of this Agreement, as to a given Customer or in its entirety, shall require a filing at FERC of a notice of termination, which filing must be accepted for filing by FERC. 10.3 Disposition of Facilities Upon Termination of Agreement Due to Default. 10.3.1 Transmission Provider and Transmission Owner Obligations. Upon termination of this Agreement due to Default, unless otherwise agreed by the Parties in writing, Transmission Owner: (a) shall, prior to the construction and installation of any portion of the CUU described in Appendix A and to the extent possible, cancel any pending orders of, or return, such equipment or material for the CUU; (b) may keep in place any portion of the CUU already constructed and installed; and, (c) shall perform such work as may be necessary to ensure the safety of persons and property and to preserve the integrity of the Transmission System (e.g., construction demobilization to return the system to its original state, wind-up work). 10.3.2 Customer Obligations. Upon billing by Transmission Owner, each Customer shall reimburse Transmission Owner for its share of any costs incurred by Original Sheet No. 26 Transmission Owner in performance of the actions required or permitted by Article 10.3.1. Transmission Owner and Transmission Provider shall use Reasonable Efforts to minimize costs and shall offset the amounts owed by any salvage value of facilities, if applicable. Each Customer shall pay these costs pursuant to Article 6.3 of this Agreement. 10.3.3 Pre -construction or Installation. Upon termination of this Agreement and prior to the construction and installation of any portion of the CUU, Transmission Owner may, at its option, retain any portion of the CUU not cancelled or returned in accordance with Article 10.3.1(a), in which case Transmission Owner shall be responsible for all costs associated with procuring the CUU. To the extent that Customers have already paid Transmission Owner for any or all of such costs, Transmission Owner shall refund such amounts to Customers within six (6) months. If Transmission Owner elects to not retain any portion of such facilities, and one or more of Customers wish to purchase such facilities, Transmission Owner shall convey and make available to the applicable Customer(s) such facilities as soon as practicable after receiving payment for such facilities. 10.4 Survival of Rights. Termination or expiration of this Agreement shall not relieve any Parry of any of its liabilities and obligations arising hereunder prior to the date termination becomes effective, and each Party may take whatever judicial or administrative actions as appear necessary or desirable to enforce its rights hereunder. The applicable provisions of this Agreement will continue in effect after expiration, or early termination hereof to the extent necessary to provide for (A) final billings, billing adjustments and other billing procedures set forth in this Agreement; (B) the determination and enforcement of liability and indemnification obligations arising from acts or events that occurred while this Agreement was in effect; and (C) the confidentiality provisions set forth in Article 12. ARTICLE 11 SUBCONTRACTORS 11.1 Subcontractors. Nothing in this Agreement shall prevent a Party from utilizing the services of subcontractors, as it deems appropriate, to perform its obligations under this Agreement; provided, however, that each Party shall require its subcontractors to comply with all applicable terms and conditions of this Agreement in providing such services and each Party shall remain primarily liable to the other Parties for the performance of such subcontractor. 11.1.1 Responsibility of Principal. The creation of any subcontract relationship shall not relieve the hiring Party of any of its obligations under this Agreement. In accordance with the provisions of this Agreement, each Party shall be fully responsible to the other Parties for the acts or omissions of any subcontractor it hires as if no subcontract had been made. Any applicable obligation imposed by this Agreement upon a Parry shall be equally binding upon, and shall be construed as having application to, any subcontractor of such Parry. Original Sheet No. 27 11.1.2 No Third -Party Beneficiary. Except as may be specifically set forth to the contrary herein, no subcontractor or any other party is intended to be, nor will it be deemed to be, a third -parry beneficiary of this Agreement. 11.1.3 No Limitation by Insurance. The obligations under this Article 11 will not be limited in any way by any limitation of any insurance policies or coverages, including any subcontractor's insurance. ARTICLE 12 CONFIDENTIALITY 12.1 Confidentiality. Confidential Information shall include, without limitation, all information relating to a Party's technology, research and development, business affairs, and pricing, and any information supplied by a Parry to another Party prior to the execution of this Agreement. Information is Confidential Information only if it is clearly designated or marked in writing as confidential on the face of the document, or, if the information is conveyed orally or by inspection, if the Party providing the information orally informs the Parry receiving the information that the information is confidential. The Parties shall maintain as confidential any information that is provided and identified by a Party as Critical Energy Infrastructure Information (CEII), as that term is defined in 18 C.F.R. Section 388.113(c). Such confidentiality will be maintained in accordance with this Article 12. If requested by the receiving Parry, the disclosing Parry shall provide in writing, the basis for asserting that the information referred to in this Article warrants confidential treatment, and the requesting Party may disclose such writing to the appropriate Governmental Authority. Each Parry shall be responsible for the costs associated with affording confidential treatment to its information. 12.1.1 Term. During the term of this Agreement, and for a period of three (3) years after the expiration or termination of this Agreement, except as otherwise provided in this Article 12 or with regard to CEII, each Party shall hold in confidence and shall not disclose to any person Confidential Information. CEII shall be treated in accordance with Commission policies and regulations. 12.1.2 Scope. Confidential Information shall not include information that the receiving Parry can demonstrate: (1) is generally available to the public other than as a result of a disclosure by the receiving Party; (2) was in the lawful possession of the receiving Party on a non -confidential basis before receiving it from the disclosing Parry ; (3) was supplied to the receiving Party without restriction by a non -Parry, who, to the knowledge of the receiving Parry after due inquiry, was under no obligation to the disclosing Party to keep such information confidential; (4) was independently developed by the receiving Party without reference to Original Sheet No. 28 Confidential Information of the disclosing Party; (5) is, or becomes, publicly known, through no wrongful act or omission of the receiving Party or Breach of this Agreement; or (6) is required, in accordance with Article 12.1.7 of this Agreement, to be disclosed by any Governmental Authority or is otherwise required to be disclosed by law or subpoena, or is necessary in any legal proceeding establishing rights and obligations under this Agreement. Information designated as Confidential Information will no longer be deemed confidential if the Party that designated the information as confidential notifies the receiving Party that it no longer is confidential. 12.1.3 Release of Confidential Information. No Party shall release or disclose Confidential Information to any other person, except to its Affiliates (limited by the Standards of Conduct requirements), subcontractors, employees, agents, consultants, or to non-parties who may be or are considering providing financing to or equity participation with Customer, or to potential purchasers or assignees of Customer, on a need -to -know basis in connection with this Agreement, unless such person has first been advised of the confidentiality provisions of this Article 12 and has agreed to comply with such provisions. Notwithstanding the foregoing, a Party providing Confidential Information to any person shall remain primarily responsible for any release of Confidential Information in contravention of this Article 12. 12.1.4 Rights. Each Party retains all rights, title, and interest in the Confidential Information that it discloses to the receiving Parry. The disclosure by a Party to the receiving Party of Confidential Information shall not be deemed a waiver by the disclosing Party or any other person or entity of the right to protect the Confidential Information from public disclosure. 12.1.5 No Warranties. By providing Confidential Information, no Parry makes any warranties or representations as to its accuracy or completeness. In addition, by supplying Confidential Information, no Parry obligates itself to provide any particular information or Confidential Information to another Party nor to enter into any further agreements or proceed with any other relationship or joint venture. 12.1.6 Standard of Care. Each Parry shall use at least the same standard of care to protect Confidential Information it receives as it uses to protect its own Confidential Information from unauthorized disclosure, publication or dissemination. Each Parry may use Confidential Information solely to fulfill its obligations to another Parry under this Agreement or its regulatory requirements. 12.1.7 Order of Disclosure. If a court or a Government Authority or entity with the right, power, and apparent authority to do so requests or requires any Party, by subpoena, oral deposition, interrogatories, requests for production of documents, administrative order, or otherwise, to disclose Confidential Information, that Parry shall provide the disclosing Party with prompt notice of such request(s) or Original Sheet No. 29 requirement(s) so that the disclosing Party may seek an appropriate protective order or waive compliance with the terms of this Agreement. Notwithstanding the absence of a protective order or waiver, the Parry may disclose such Confidential Information which, in the opinion of its counsel, the Parry is legally compelled to disclose. Each Parry will use Reasonable Efforts to obtain reliable assurance that confidential treatment will be accorded any Confidential Information so furnished. 12.1.8 Termination of Agreement. Upon termination of this Agreement for any reason, each Party shall, within ten (10) Calendar Days of receipt of a written request from another Parry, use Reasonable Efforts to destroy, erase, or delete (with such destruction, erasure, and deletion certified in writing to the requesting Parry) or return to the requesting Parry any and all written or electronic Confidential Information received from the requesting Party, except that each Party may keep one copy for archival purposes, provided that the obligation to treat it as Confidential Information in accordance with this Article 12 shall survive such termination. 12.1.9 Remedies. The Parties agree that monetary damages would be inadequate to compensate a Parry for another Party's Breach of its obligations under this Article 12. Each Parry accordingly agrees that the disclosing Party shall be entitled to equitable relief, by way of injunction or otherwise, if the receiving Parry Breaches or threatens to Breach its obligations under this Article 12, which equitable relief shall be granted without bond or proof of damages, and the breaching Parry shall not plead in defense that there would be an adequate remedy at law. Such remedy shall not be deemed an exclusive remedy for the Breach of this Article 12, but shall be in addition to all other remedies available at law or in equity. The Parties further acknowledge and agree that the covenants contained herein are necessary for the protection of legitimate business interests and are reasonable in scope. No Parry, however, shall be liable for indirect, incidental, or consequential or punitive damages of any nature or kind resulting from or arising in connection with this Article 12. 12.1.10 Disclosure to FERC, Its Staff or a State. Notwithstanding anything in this Article 12 to the contrary, and pursuant to 18 C.F.R. § 1b.20, if FERC or its staff, during the course of an investigation or otherwise, requests information from a Party that is otherwise required to be maintained in confidence pursuant to this Agreement, the Party shall provide the requested information to FERC or its staff, within the time provided for in the request for information. In providing the information to FERC or its staff, the Party must, consistent with 18 C.F.R. § 388.112, request that the information be treated as confidential and non-public by FERC and its staff and that the information be withheld from public disclosure. Parties are prohibited from notifying the other Parties to this Agreement prior to the release of the Confidential Information to FERC or its staff. The Parry shall notify the other Parties to the Agreement when it is notified by FERC or its staff that a request to release Confidential Information Original Sheet No. 30 has been received by FERC, at which time any of the Parties may respond before such information would be made public, pursuant to 18 C.F.R. § 388.112. Requests from a state regulatory body conducting a confidential investigation shall be treated in a similar manner if consistent with the applicable state rules and regulations. 12.1.11 Subject to the exception in Article 12.1.10, any information that a disclosing Party claims is competitively sensitive, commercial or financial information under this Agreement shall not be disclosed by the receiving Party to any person not employed or retained by the receiving Parry, except to the extent disclosure is (i) required by law; (ii) reasonably deemed by the disclosing Parry to be required to be disclosed in connection with a dispute between or among the Parties, or the defense of litigation or dispute; (iii) otherwise permitted by consent of the disclosing Parry, such consent not to be unreasonably withheld; or (iv) necessary to fulfill its obligations under this Agreement or as the Regional Transmission Organization or a Local Balancing Authority operator including disclosing the Confidential Information to a regional or national reliability organization. The Parry asserting confidentiality shall notify the receiving Parry in writing of the information that Parry claims is confidential. Prior to any disclosures of that Party's Confidential Information under this subparagraph, or if any non -Parry or Governmental Authority makes any request or demand for any of the information described in this subparagraph, the Party who received the Confidential Information from the disclosing Party agrees to promptly notify the disclosing Party in writing and agrees to assert confidentiality and cooperate with the disclosing Parry in seeking to protect the Confidential Information from public disclosure by confidentiality agreement, protective order or other reasonable measures. ARTICLE 13 INFORMATION ACCESS AND AUDIT RIGHTS 13.1 Information Access. Each Parry shall make available to the other Parties information necessary to verify the costs incurred by the other Parties for which the requesting Party is responsible under this Agreement and carry out obligations and responsibilities under this Agreement, provided that the Parties shall not use such information for purposes other than those set forth in this Article 13.1 and to enforce their rights under this Agreement. 13.2 Audit Rights. Subject to the requirements of confidentiality under Article 12 of this Agreement, the accounts and records related to the design, engineering, procurement, and construction of the CUU shall be subject to audit during the period of this Agreement and for a period of twenty-four (24) months following Transmission Owner's issuance of a final invoice in accordance with Article 6.4. Customers may jointly or individually, at the expense of the requesting Party(ies), during normal business hours and upon prior reasonable notice to the other Parties, audit such accounts and records, provided, however, that Transmission Owner shall not be required to cooperate with more than one Original Sheet No. 31 audit per quarter (accordingly, if more than one Customer wishes to conduct an audit within a given calendar quarter, they must do so jointly). Any audit authorized by this Article 13.2 shall be performed at the offices where such accounts and records are maintained and shall be limited to those portions of such accounts and records that relate to obligations under this Agreement. ARTICLE 14 DISPUTES 14.1 Submission. Any claim or dispute, which a Party may have against another Parry, arising out of this Agreement shall be submitted for resolution in accordance with the dispute resolution provisions of the Transmission Provider Tariff. 14.2 Rights under the Federal Power Act. Nothing in this Article 14 shall restrict the rights of any Party to file a complaint with FERC under relevant provisions of the Federal Power Act. 14.3 Equitable Remedies. Nothing in this Article shall prevent a Party from pursuing or seeking any equitable remedy available to it under Applicable Laws and Regulations, at any time, before a Governmental Authority. ARTICLE 15 NOTICES 15.1 General. Any notice, demand or request required or permitted to be given by a Parry to another Parry and any instrument required or permitted to be tendered or delivered by a Parry in writing to another Party may be so given, tendered or delivered, as the case may be, by depositing the same with the United States Postal Service with postage prepaid, for transmission by certified or registered mail, addressed to the Parties, or personally delivered to the Parties, at the address set out below: To Transmission Provider: MISO Attn: Director, Transmission Access Planning 720 City Center Drive Carmel, IN 46032 To Transmission Owner: Missouri River Energy Services Attn: Director of Power Supply & Operations Mailing Address: PO Box 88920 Sioux Falls, SD 57109-8920 Original Sheet No. 32 Delivery: 3724 West Avera Drive Sioux Falls, SD 57108 MRES is the MISO Transmission Owner for Hutchinson Utilities Commission owned transmission assets including the McLeod 230 kV substation. All correspondence should be directed to MRES. To J302 Customer: MidWest Business Manager Chistopher Kozlowski 700 Universe Blvd Juno Beach, FL 33408 Christopher.kozlowski(c�nee.com To J476 Customer: Outlaw Wind Proiect General Counsel One South Wacker Suite 1800 Chicago, IL 60606 312-224-1400 Email Interconnection -Notices(? invenerg_yllc. com To J503 Customer: MidWest Business Manager Chistopher Kozlowski 700 Universe Blvd Juno Beach, FL 33408 Christopher.kozlowski(c�nee.com To J512 Customer: Nobles 2 Power Partners, LLC 14302 FNB Parkway Omaha, NE 68154-5212 To J569 Customer: MidWest Business Manager Chistopher Kozlowski 700 Universe Blvd Juno Beach, FL 33408 Christopher.kozlowski(c�nee.com Original Sheet No. 33 To J583 Customer: MidWest Business Manager Chistopher Kozlowski 700 Universe Blvd Juno Beach, FL 33408 Christopher.kozlowski(c�nee.com To J587 Customer: Northern States Power Company In care of Xcel Energy Services, Inc. Attn: Thomas Zellmer 414 Nicollet Mall, 414-02 Minneapolis, MN 55401 To J590 Customer: MidAmerican Energy Company Attn: Mike Fehr, Vice President, Resource Development 4299 NW Urbandale Ave Urbandale, IA 50322 Telephone: (515) 281-2754 Fax: (515) 242-3084 Email MCFehr@midamerican.com To J611 Customer: Contrail Wind Project, LLC General Counsel One South Wacker Suite 1800 Chicago, IL 60606 312-224-1400 Email Interconnection -Notices(? invenerg_yllc. com 15.2 Billings and Payments. Billings and payments shall be sent to the addresses shown in Article 15.1 unless otherwise agreed to by the Parties. Transmission Provider: MISO Original Sheet No. 34 Attn: Director, Transmission Access Planning 720 City Center Drive Carmel, IN 46032 Transmission Owner: Missouri River Energy Services Attn: Director of Power Supply & Operations Mailing Address: PO Box 88920 Sioux Falls, SD 57109-8920 Delivery: 3724 West Avera Drive Sioux Falls, SD 57108 MRES is the MISO Transmission Owner for Hutchinson Utilities Commission owned transmission assets including the McLeod 230 kV substation. All correspondence should be directed to MRES. J302 Customer: MidWest Business Manager Chistopher Kozlowski 700 Universe Blvd Juno Beach, FL 33408 Christopher.kozlowski2nee.com J476 Customer: Outlaw Wind Project General Counsel One South Wacker Suite 1800 Chicago, IL 60606 312-224-1400 Email Interconnection -Notices(? invenerg_yllc. com J503 Customer: MidWest Business Manager Chistopher Kozlowski 700 Universe Blvd Juno Beach, FL 33408 Christopher.kozlowski(c�nee.com Original Sheet No. 35 J512 Customer: Accounts Payable Nobles 2 Power Partners, LLC 14302 FNB Parkway Omaha, NE 68154 Email: ap@tenaska.com J569 Customer: MidWest Business Manager Chistopher Kozlowski 700 Universe Blvd Juno Beach, FL 33408 Christopher.kozlowski2nee.com J583 Customer: MidWest Business Manager Chistopher Kozlowski 700 Universe Blvd Juno Beach, FL 33408 Christopher.kozlowski2nee.com J587 Customer: Northern States Power Company In care of Xcel Energy Services, Inc. Attn: Thomas Zellmer 414 Nicollet Mall, 414-02 Minneabolis_ MN 55401 J590 Customer: MidAmerican Energy Company Attn: Mike Fehr, Vice President, Resource Development 4299 NW Urbandale Ave Urbandale, IA 50322 Telephone: (515) 281-2754 Fax: (515) 242-3084 Email MCFehr@midamerican.com J611 Customer: Contrail Wind Project, LLC Asset Manager Original Sheet No. 36 One South Wacker Suite 1800 Chicago, IL 60606 312-224-1400 Email: Interconnection-Notices2invenergyllc.com 15.3 Alternative Forms of Notice. Any notice or request required or permitted to be given by a Parry to another Party and not required by this Agreement to be given in writing may be so given by telephone, facsimile or email to the telephone numbers and email addresses set out below: To Transmission Provider: MISO Attn: Director, Transmission Access Planning 720 City Center Drive Carmel, IN 46032 To Transmission Owner: Missouri River Energy Services Attn: Director of Power Supply & Operations Mailing Address: PO Box 88920 Sioux Falls, SD 57109-8920 Delivery: 3724 West Avera Drive Sioux Falls, SD 57108 MRES is the MISO Transmission Owner for Hutchinson Utilities Commission owned transmission assets including the McLeod 230 kV substation. All correspondence should be directed to MRES. To J302 Customer: MidWest Business Manager Chistopher Kozlowski 700 Universe Blvd Juno Beach, FL 33408 Christopher.kozlowski(c�nee.com Original Sheet No. 37 To J476 Customer: Outlaw Wind Project General Counsel One South Wacker Suite 1800 Chicago, IL 60606 312-224-1400 Email Interconnection-Notices2invenergyllc.com To J503 Customer: MidWest Business Manager Chistopher Kozlowski 700 Universe Blvd Juno Beach, FL 33408 Christopher.kozlowski2nee.com To J512 Customer: Phone: (402) 691-9500 Email: bstaples@tnsk.com or dfossum@tenaska.com To J569 Customer: MidWest Business Manager Chistopher Kozlowski 700 Universe Blvd Juno Beach, FL 33408 Christopher.kozlowski2nee.com To J583 Customer: MidWest Business Manager Chistopher Kozlowski 700 Universe Blvd Juno Beach, FL 33408 Christopher.kozlowski2nee.com To J587 Customer: Phone: 612-321-3118 Email address: thomas.d.zellmerLxcelenergy. com Fax: 612-330-6860 Original Sheet No. 38 To J590 Customer: MidAmerican Energy Company Attn: Mike Fehr, Vice President, Resource Development 4299 NW Urbandale Ave Urbandale, IA 50322 Telephone: (515) 281-2754 Fax: (515) 242-3084 Email MCFehr@midamerican.com To J611 Customer: Contrail Wind Project, LLC General Counsel One South Wacker Suite 1800 Chicago, IL 60606 312-224-1400 Email Interconnection -Notices(? invenergyllc. com 15.4 DUNS #. If either Transmission Owner or any Customer has not obtained a DUNS number by the time this Agreement is executed, each such Party will forward its DUNS number within five (5) Business Days of having obtained such number to Transmission Provider by facsimile telephone or email to the fax number or email set out below Transmission Owner DUNS Number: N/A J302 Customer: DUNS Number: N/A J476 Customer: DUNS Number: N/A J503 Customer: DUNS Number: N/A J512 Customer: DUNS Number: 080761741 J569 Customer: DUNS Number: N/A Original Sheet No. 39 J583 Customer: DUNS Number: N/A J587 Customer: DUNS Number: N/A J590 Customer: DUNS Number: N/A J611 Customer: DUNS Number: N/A 15.5 Notification of In -Service Date. Transmission Owner will serve to Transmission Provider a copy of Appendix B as forwarded to Customers on the same day to the address shown in Article 15.1, and by facsimile telephone to the numbers set out below: To Transmission Provider: Facsimile telephone — (317) 249-5703 And copy to MISO Attn: Director, Transmission Access Planning 720 City Center Drive Carmel, IN 46032 ARTICLE 16 MISCELLANEOUS 16.1 Waiver. Except as otherwise provided for in this Agreement, the failure of any Party to comply with any obligation, covenant, agreement, or condition herein may be waived by the Parties entitled to the benefits thereof only by a written instrument signed by the Parties granting such waiver. Any waiver at any time by a Party of its rights with respect to a Default under this Agreement, or with respect to any other matters arising in connection with this Agreement, shall not be deemed a waiver or continuing waiver with respect to any subsequent Default or other matter. 16.2 Governing Law. The validity, interpretation and performance of this Agreement and each of its provisions shall be governed by the laws of the state where the CUU is located, without regard to its conflicts of law principles. Original Sheet No. 40 16.3 Headings Not to Affect Meaning. The descriptive headings of the various Sections and Articles of this Agreement have been inserted for convenience of reference only and shall in no way modify or restrict any of the terms and provisions hereof. 16.4 Amendments and Rights Under the Federal Power Act. Transmission Provider shall have the right to make a unilateral filing with FERC to modify this Agreement with respect to any rates, terms and conditions, charges, classifications of service, rule or regulation under Section 205 or any other applicable provision of the Federal Power Act and FERC's rules and regulations thereunder, and Transmission Owner and Customers shall have the right to make a unilateral filing with FERC to modify this Agreement pursuant to Section 206 or any other applicable provision of the Federal Power Act and FERC's rules and regulations thereunder; provided, however, that each Party shall have the right to protest any such filing and to participate fully in any proceeding before FERC in which such modifications may be considered. Nothing in this Agreement shall limit the rights of the Parties or of FERC under Sections 205 or 206 of the Federal Power Act and FERC's rules and regulations thereunder, except to the extent that the Parties otherwise mutually agree as provided herein. 16.5 Entire Agreement. This Agreement, together with all the exhibits, constitutes the final and entire written agreement among the Parties hereto with reference to the subject matter hereof, and is a complete and exclusive statement of those terms and conditions and supersedes all prior negotiations, representations or agreements, either written or oral, with respect to the specific subject matter of this Agreement. No change or modification as to any of the provisions hereof shall be binding on any Party unless reduced to writing and approved by the duly authorized officer or agent of each Customer, Transmission Owner, and Transmission Provider. 16.6 Counterparts. This Agreement may be executed in any number of counterparts, and each executed counterpart shall have the same force and effect as an original instrument. 16.7 Binding Effect. This Agreement and the rights and obligations hereof, shall be binding upon and shall inure to the benefit of the Parties hereto and their successors and assigns. No person or party shall have any rights, benefits or interests, direct or indirect, arising from this Agreement except the Parties hereto, their successors and authorized assigns. The Parties expressly disclaim any intent to create any rights in any person or party as a third parry beneficiary to this Agreement. 16.8 Conflicts. In the event of a conflict between the body of this Agreement and any attachment, appendix or exhibit hereto, the terms and provisions of the body of this Agreement shall prevail and be deemed to be the final intent of the Parties. 16.9 Regulatory Requirements. Each Party's obligations under this Agreement shall be subject to its receipt of any required approval or certificate from one or more Governmental Authorities in the form and substance satisfactory to the receiving Parry, or the Party making any required filings with, or providing notice to, such Governmental Original Sheet No. 41 Authorities, and the expiration of any time period associated therewith. Each Parry shall in good faith seek these other approvals as soon as is reasonably practicable. ARTICLE 17 REPRESENTATIONS AND WARRANTIES 17.1 General. Each Parry hereby represents, warrants and covenants as follows with these representations, warranties, and covenants effective as to the Party during the full time this Agreement is effective: 17.1.1. Good Standing. Such Parry is duly organized or formed, as applicable, validity existing and in good standing under the laws of its state of organization or formation, and is in good standing under the laws of the respective state(s) of its organization as stated in the preamble of this Agreement. 17.1.2 Authority. Such Parry has the right, power and authority to enter into this Agreement, to become a parry hereto and to perform its obligations hereunder, and this Agreement is a legal, valid and binding obligation of such Party, enforceable against such Party in accordance with its terms. 17.1.3 No Conflict. The execution, delivery and performance of this Agreement does not violate or conflict with the organizational or formation documents, or bylaws or operating agreement, of such Party, or any judgment, license, permit or order or material agreement or instrument applicable to or binding upon such Parry or any of its assets. 17.1.4 Consent and Approval. That it has sought or obtained, or, in accordance with this Agreement will seek or obtain, each consent, approval, authorization or order of, or acceptance of a filing with, or notice to, any Governmental Authority with jurisdiction concerning this Agreement, in connection with the execution, delivery and performance of this Agreement. Original Sheet No. 42 IN WITNESS WHEREOF, the Parties have executed this Agreement in multiple originals, each of which shall constitute and be an original Agreement among the Parties. Transmission Provider Midcontinent Independent System Operator, Inc. By: Name: Title: J302 Customer By: Name: Title: J476 Customer By: Name: Title: J503 Customer By: Name: Title: J512 Customer By: Name: Title: J569 Customer By: Name: Title: J583 Customer Original Sheet No. 43 By: Name: Title: J587 Customer By: Name: Title: J590 Customer By: Name: Title: J611 Customer By: Name: Michael C. Fehr Title: VP, Resource Development Transmission Owner [Transmission Owner] By: Name: Raymond J. Wahle Title: Director, Power Supply and Operations Project No. J302, J476, J503, J512, J569, J583, J587, J590 and J611 Original Sheet No. 44 Facilities Construction Agreement APPENDIX A THE CUU, COST ESTIMATES AND RESPONSIBILITY, TRANSMISSION CREDITS, CONSTRUCTION SCHEDULE AND PAYMENT SCHEDULE This Appendix A is a part of the Facilities Construction Agreement between Customers, Transmission Owner, and Transmission Provider. 1.0 Each individual Interconnection Customer is responsible for a proportionate percentage share of the CUU estimated cost based on its proportionate impact on the constrained facilities causing the need for the CUU. Constrained facilities are those CUU facilities that are being upgraded in Section 1.2. J302 is seeking interconnection service for 101.2 MW and J476 is seeking interconnection service for 246 MW and J503 is seeking interconnection service for 98.8 MW and J512 is seeking interconnection service for 250 MW and J569 is seeking interconnection service for 100 MW and J583 is seeking interconnection service for 200 MW and J587 is seeking interconnection service for 200 MW and J590 is seeking interconnection service for 90 MW and J611 is seeking interconnection service for 110 MW. Each Interconnection Customer's respective proportionate responsibility is defined in Exhibit C4 1.1 Transmission Owner's Interconnection Facilities 1.2 CUU to be installed by Transmission Owner. 1.2.1 Transmission Owner Substation CUU: McLeod Substation - add 230 kV 50 MVAR Capacitor The scope of work for this portion of the project includes the addition of one 50 MVAr capacitor bank, circuit breaker, disconnect switch and the bus conductor to the 230kV main bus. A capacitor switching study was performed to determine if switching a single 50 MVAr capacitor bank at McLeod violates system intact and contingency voltage rise criteria at 3% and 5%, respectively. The voltage rise study showed that switching 1X50 MVA does not cause violations to the voltage rise criteria (see Exhibit A15 for results). Note that an electro-magnetic transient (EMT) study was not performed at this time. Due to the proximity of this capacitor bank location to a load that may be sensitive to switching transients, performing and completing an EMT study was recommended. Such an EMT study could result in mitigation / design changes from what was anticipated in the Facility Study. One new Capacitor Bank panel with breaker control will be installed. The primary relay will be a SEL-487V. The secondary relay will be a SEL-351A. Breaker failure relaying and sync check will be done by both the primary and secondary line relays. One current input from the new 230kV breaker R134 will be wired in the existing SEL- 387 used for 230kV Bus protection. Assumptions: Original Sheet No. 45 ■ It is assumed outages to complete the Network Upgrades will be granted when requested to meet project schedule. ■ It is assumed based on the present tax laws in effect at the time of this study that tax gross -up would not apply and is not included in the cost estimates. ■ It is assumed labor resources will be available at reasonable costs. For example, low unemployment rates and significant amounts of transmission and substation project work related to new wind farm interconnections requesting to be eligible for the Federal Production Tax Credit ("PTC") may drive costs significantly higher and affect schedule. ■ It is assumed that timely receipt of cash payment will be provided by all the Interconnection Customers. ■ It is assumed that the capacitor bank switching analysis and harmonic frequency scan analysis that will be completed as part of the design process will not result in significant changes to the project scope. Major Items ■ Steel Structures: 230 kV o One three-phase low bus switch stand ■ Electrical Equipment: 230 kV o One 3000A, 40 kA, SF6 type circuit breaker rated for -40C ambient temperature with synchronize closing o One 2000A disconnect switch o One 50 WAR, split wye ground ■ Bus Conductor: 0 125 feet of double 1590 MCM AAC for breaker jumpers. 0 100 feet of double 1590 MCM AAC for capacitor bank jumpers. 0 100 feet of 4" Aluminum Tube for bus ■ Ground Conductor: o 1,120 feet of 4/0 AWG bare copper conductor. ■ One new relay and control panel for 230kV Capacitor Bank and circuit breaker R134 Control. 1.2.2 Transmission Owner Transmission Line CUU: None. 1.2.3 Transmission Owner Transmission Line Permitting: None 1.2.4 Cost Estimates and Responsibility. Customers and Transmission Owner hereby acknowledge and agree that the cost indicated below is only an estimate and that Customers shall reimburse Transmission Owner for all actual costs, as determined pursuant to Article 3.2 of this Agreement associated with the construction and installation by Transmission Owner of the CUU. 1.2.4.1 The total cost for the CUU is estimated at PRIVILEGED in 2019 dollars. This estimate is expected to be within 20% of the actual cost. Original Sheet No. 46 1.2.4.2 Customers' liability for reimbursement of Transmission Owner for taxes, interest and/or penalties under Article 3.3.1 of this Agreement is $0. Table 1 - CUU (Customer funded but refunded in accordance with and to the extent provided in Attachment FF of the Transmission Provider Tariff): The Common Use Upgrades cost for a Group Study is allocated based on the MW impact from each project on the constrained facilities in the Base Case in accordance with Good Utility Practice. With all Group Study projects in the Base Case, all constraints are identified and a distribution factor from each project on each constraint is obtained. Finally, the Common Use Upgrades cost is allocated based on the pro rata share of the MW contribution on the constraints alleviated by those Common Use Upgrades from each project. 1.3 First Equipment Order. See Table 2 1.4 Transmission Credits. See Article 3.2.2 of the Agreement. 1.5 Construction Schedule. Where applicable, construction of the CUU and Interconnection Facilities is scheduled as follows and will be periodically updated as necessary: Table 2: Transmission Owner Construction Activities MILESTONE DESCRIPTION DATE, all timelines estimated NUMBER from when payment has been received. I Initial Contractual Agreement 1 month Process 2 Permititing, Engineering, 5 months Procurement 3 Grade site, site work prep, and 3 months (Note 3) foundations pour/cure Substation construction and 3 months (Note 3) 4 commissioning 5 1 TOTAL 12 months Original Sheet No. 47 Note: The Transmission Owner proposed schedule dates may not match or align with the customer requested in-service date. The dates are also dependent on a signed MPFCA with the customer meeting the milestones as set forth in the MPFCA and are subject to the assumptions set forth in Section 1.2.1 above. 2. Permitting timeline is tentative and is based on the assumption that this project will not be required to go through the State Permitting Process. Permitting required is assumed to be minimal and local. 3. Outages required to perform the work within this facility study may be limited to certain months of the year due to outage restrictions. After receipt of advance payments (or security, to the extent permitted by Transmission Owner in lieu of advance payment) from Customer in accordance with Section 1.6, below, Transmission Owner will make reasonable best efforts to coordinate its work in order to meet the In -Service Date reflected in Table 2 for the CUU. The exact schedule will be dependent upon outages required to the various existing facilities. It is expected that some of the CUU work may be done in parallel. The estimated duration of the work for the CUU is estimated as shown in Table 2. 1.6 Payment Schedule. 1.6.1 Timing of and Adjustments to Customers' Payments and Security. Notwithstanding the requirements of Article 6.1 of the Agreement, Customers shall make the advance payments or, if a Customer cannot provide advance payments because Governmental Authority approvals have not yet been granted, provide irrevocable security, to Transmission Owner as set forth in the schedule in Table 3 in Section 1.6.2 of this Appendix A. Transmission Owner shall not be required to send to Customers an invoice or notice for such initial payments or security; rather, such payment (or security) shall be provided by Customers by the date specified in Table 3 below. Subsequent payments shall be pursuant to invoices issued by Transmission Owner in accordance with Section 1.6.2. 1.6.2 Payment Schedule. The Customers' payment schedule is as follows. Original Sheet No. 48 Initial payments shall be made pursuant to Table 3 below. Failure by any Customer to provide payments (or security acceptable to Transmission Owner, where applicable) by the due date in the table below to Transmission Owner is a Breach pursuant to Article 9. If, at any time during the course of Transmission Owner's work on the CUU, it becomes aware that the payments it has received and security it then holds will not be sufficient to fully fund the work, Transmission Owner shall submit invoices to Customers for their proportionate shares of the additional funds needed. Each Customer shall pay the full amount of the invoice (or, if a Customer cannot provide advance payments because Governmental Authority approvals have not yet been granted, provide irrevocable security for the full amount) within 30 Calendar Days. A Customer's failure to make any such payment (or provide acceptable irrevocable security, where applicable) when due shall constitute a Breach by such Customer. A Customer that fails to make payments when due will be given a breach notice. Until the Breach is cured in accordance with Article 9, Transmission Owner is relieved from performing under this Agreement. Failure by any Customer to comply with Article 9.2.2(A) or 9.2.2(B) relative to such Breach may, pursuant to Article 2.2.2, result in termination of the Agreement as to that Customer. Table 3: Customers' Payment/Security Obligations for Transmission Owner Network Substation Upgrades. MILESTONE DESCRIPTION DATE NUMBER 1 Each Customer* to provide Transmission Owner with Within 45 days advance cash payment for its respective share of of MPFCA PRIVILEGED. Advance cash payment will be applied to execution Transmission Owner's construction of the CUU. * Customers' proportionate responsibility for each payment is as defined in Exhibit C4: Note: The Customers' payments or provision of irrevocable security as provided in this Agreement operate as a condition precedent to Transmission Owner's obligations to construct the CUU. 1.6.3 Final Invoice. Within six (6) months after completion of the construction of the Transmission Owner's Network Upgrade, Transmission Owner shall provide an invoice of the final cost of the construction of the Transmission Owner's Network Upgrade and shall set forth such costs in sufficient detail to enable Customers to compare the actual costs with the estimates and to ascertain deviations, if any, from the cost estimates. Transmission Owner shall refund, without interest to Original Sheet No. 49 Customers any amount by which the actual payment by Customers for estimated costs exceeds the actual costs of construction within thirty (30) Calendar Days of the issuance of such final construction invoice. 1.6.4 Customers shall pay, or Transmission Owner shall refund, any difference between actual costs and actual payments in accordance with this Agreement, no later than thirty (30) Calendar Days after the Transmission Owner's final cost determination. If agreed in writing by the Parties, payments may be made in accordance with a revised schedule. 1.7 Permits, Licenses and Authorizations. Some permits may be required to be obtained by the owner. This substation expansion will encroach into land already owned by the HUC. Specific permits will be dependent on the detailed design and final arrangement of substation equipment. Original Sheet No. 50 Facilities Construction Agreement APPENDIX B NOTIFICATION OF COMPLETED CONSTRUCTION This Appendix B is a part of the Facilities Construction Agreement among Customers, Transmission Owner, and Transmission Provider. Where applicable, when Transmission Owner has completed construction of the CUU, Transmission Owner shall send notice to Customers and Transmission Provider, in substantially the form following: [Date] MISO Attn: Director, Transmission Access Planning 720 City Center Drive Carmel, IN 46032 [Name or Title] [Customer] [Address] Re: Completion of Common Use Upgrades ("CUU") Dear [Name or Title]: This letter is sent pursuant to the Facilities Construction Agreement among [Transmission Owner], [Customers], and MISO, dated , 20 On [Date], Transmission Owner completed to its satisfaction all work on the CUU described in the , 20 Facilities Construction Agreement between the Parties. Further, Transmission Owner confirms that the CUU have been placed "in service." Thank you. [Signature] [Transmission Owner Representative] Original Sheet No. 1 Facilities Construction Agreement APPENDIX C Exhibits This Appendix C is a part of the Facilities Construction Agreement among Customers, Transmission Owner, and Transmission Provider. Original Sheet No. 1 Exhibit C1 McLeod Substation: One Line Ref. Facilities Study. Exhibit C2 Site Plan or General Arrangement Ref. Facilities Study. Original Sheet No. 1 Exhibit C3 Estimated Cost of Transmission line and/or Substation CUU Non -Stand Alone 50 MVAR Cap Bank Addition and Incidental PRIVILEGED Network Upgrade Equipment TOTAL PRIVILEGED Original Sheet No. 1 Exhibit C4 Cost allocation of Transmission line and/or Substation CUU McLeod Substation 230 kV Bus 50 MVAR Capacitor Estimated Cost Allocation Interconnection Customer Cost Allocation Share Cost Allocation J302 11.66% PRIVILEGED J476 4.48% PRIVILEGED J503 11.38% PRIVILEGED J512 19.32% PRIVILEGED J569 7.06% PRIVILEGED J583 2.93% PRIVILEGED J587 40.94% PRIVILEGED J590 0.46% PRIVILEGED J611 1.77% PRIVILEGED HUTCHINSON UTILITIES COMMISSION��` Board Action Form �rMturscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: Req #8226 - 2020 Chevrolet pickup Presenter: D. Lang Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments,: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: State of Minnesota contract pricing. Replacement for 2012 Dodge Durango (#732). BOARD ACTION REQUESTED: Approval of requisition #8226 to Karl Chevrolet. Fiscal Impact: $28,903.40 Included in current budget: Yes Budget Change: No PROJECT SECTION: Total Project Cost: Remaining Cost: HUTCHINSON UTILITIES ra,�itiaa° oni,initIIIEwasrioI'll KARL CHEVROLET INC. 1101 SE ORALABOR RD ANKENY, IA 50021 Note Description: 2020 Chevrolet Colorado WT PURCHASE REQUISITION HUTCHINSON UTILITIES COMMISSION 225 MICHIGAN ST SE HUTCHINSON, MN 55350 Phone:320-587-4746 Fax:320-587-4721 Date Requisition No. 12/11 /2019 008226 Required by: Requested by: Mang Item No. Part No. Description Qty Unit Due Date Unit Price Ext. Amount 2020 CHEVROLET COLORADO WT - CREW CAB, SHORT BOX (128"WB), 4WD 1 "WORK TRUCK" MODEL 1.00 EA $28,903.400 $28,903.40 MN VEHICLE ID #CTK4 MN STATE CONTRACT #168929 MFG. PART: Total: 28,903.40 Date Printed: 12/11/2019 Requisitioned By: DLang Page: 1/1 Government Fleet Accounts Manager Dennis Rudolph 515-299-4409 Office d.rudolph@karlchevrolet.com .4n YEARS Government Accounts Asst .+d�YnNn. 'NtldW'M4 a••.•••�.. Heather Rudolph KARL CHEVROLET Inc. 515-264-6456 Office 1101 SE Oralabor Rd, Ankeny, Iowa 50021 h.rudolph@karlchevrolet.com PRICE SUMMARY SHEET for City of Hutchinson Date of Quote: 12/11/2019 State Contract#: 168929 Quoted Year/Make/Model: Colorado Crew 4WT Contract Group/ID#: CTK4 Selected rnntrart Ontinns Contract Base Price: $25,713.74 Trinle NFT Prire CGN S ra in Bedliner $418.00 VQK Molded Splash Guards $158.40 PCN WT Convenience package $466.40 VK3 Front License Plate bracket $0.00 PCX WT Appearance Package $382.80 GAZ Summit White $0.00 H2R Jet Black/Dark Ash Cloth $0.00 Intentionally Left Blank Intentionally Left Blank Intentionally Left Blank Intentionally Left Blank Intentionally Left Blank Intentionally Left Blank Intentionally Left Blank Intentionally Left Blank * Karl Chevrolet Inc. is not responsible for any tax liabilities owed, known or unknown, at time of quote. It is the responsibility of the Agency to ensure all fees are appropriately paid and designated at time of actual purchase whether paid through Karl Chevrolet Inc or by the Agency themselves. * Karl Chevrolet Inc may use Metro Titling Services for some titling and registrations for the State of Minnesota and may incur additional charges for this service. Additional Fees will be designated under "METRO Fees" line. SUBTOTAL PRE-TAX $27,139.34 MN State Vehicle Tax 6.5% $1,764.06 METRO FEES $0.00 MN Title Fee $0.00 MN Filing Fee $0.00 MN Plate Fee $0.00 MN Public Safety $0.00 MN Transfer Tax $0.00 MN Wheel Tax $0.00 MN Excise Tax $0.00 TOTAL DELIVERED COST with Options Included: $28,903.40 Estimated Lead Time ARO in days: 90-120 Current Order Cut -Off Date from Manufacturer: 12/19/2019 12/11 /2019 9:21:25 dy+;CXIMgB� HUTCHINSON UTILITIES COMMISSION Board Action Form Discussion of possible City Charter amendment to change the eligibility requirements to Agenda Item: serve as a Hutchinson Utilities Commissioner Presenter: Marc Sebora Agenda Item; Type: ; Time Requested (Minutes): 5 New Business Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: At times throughout the years, the Utilities Commission has struggled to find qualified candidates to serve as Utilities Commissioner and since about 2013 the Utilities Commission has periodically discussed possibly changing the eligibility requirements to serve as a Utilities Commissioner. As you may recall, the requirements to serve as Utilities Commissioner are set out in the Hutchinson City Charter and the only requirement is that a person needs to be a "registered voter" in the City of Hutchinson. When the Hutchinson Charter Commission met in November they discussed a possible change to the eligibility requirements to be on the Utilities Commission, and at that meeting they discussed making business ownership in the City of Hutchinson an alternative requirement to be eligible to serve on the Utilities Commission. The thought behind this possible change was that it would give the Utilities Commission a larger pool of potential Utilities Commission candidates from which to choose from, and if the person was a business owner located in Hutchinson they would also necessarily be a customer of the Utility and therefore have a vested interest in the success of the Utility. After the Charter Commission discussed this they voted to table a final decision until they meet again in April, in part, to allow the Utilities Commission to discuss this possible change and provide the Charter Commission with any feedback concerning it. I am attaching a copy of the proposed charter amendment for your review. At this time I am merely introducing this item to you for discussion purposes. I will have the matter put back on the January agenda for further discussion and possible action on this topic by you at that meeting. In the meantime, should you have further questions about this please feel free to contact me. Marc BOARD ACTION REQUESTED: None FiscalImpact: Included in current budget: Budget Change: PROJECT SECTION:' Total Project Cost: Remaining Cost: CHAPTER 11 Public Ownership and Operations of Utilities Section 11.01. CONTROL AND MANAGEMENT. The Hutchinson Utilities Commission of the City of Hutchinson shall have control and management of the Electric Plant, the Electric Plant distribution system, the Gas Plant and the Gas Distribution system in the City of Hutchinson. Section 11.02. APPOINTMENT AND TERMS. The commission shall consist of five (5) persons, registered voters of Hutchinson, or who are owners of a business whose principal place of business is within the City of Hutchinson who shall be appointed by the council. One of the members may be a member of the city council appointed annually by the mayor with the consent of the city council, at the first meeting of the city council in January of each year. After initial appointments for such terms as are set by the council, a member shall be appointed every year for a term of 5 years, to fill the place of the member whose term has expired, except for any city council member appointed to serve on the Utilities Commission, and in such case, that person shall serve a one year term subject to reappointment. The commissioners in office at the time of adoption of this charter shall continue to serve the term to which they were previously appointed. Commissioners shall qualify for their office by taking and subscribing to the oath of office required of members of the council and filing the same with city administrator. They shall hold office until their successors are appointed and qualified and vacancies in office for any cause shall be filled for the balance of the term in which the vacancy occurs in the same manner as the original appointment is made. No member shall serve more than two consecutive five-year terms, exclusive of the fulfillment of an unexpired term, but shall be again eligible for such service following a break in service of not less than one year. The members of the commission, excluding the city council member, may receive compensation for their services as determined by the council. Section 11.03. ORGANIZATION. The commission shall provide for its own organization and rules of procedure and annually shall elect a president and vice-president from among its members who shall perform the usual duties of those positions, under the direction of the commission. It shall also appoint a secretary who may or may not be a member of the commission. All monies received for gas and electric services rendered shall be deposited in a separate municipal Electric Plant Fund and Natural Gas Division Fund. The commission shall keep record of the monies (above mentioned) and pay them out only upon verified orders and upon warrants signed by two members of the commission. Section 11.04. POWERS OF THE COMMISSION. The commission shall have full, absolute and exclusive control of power over the City Electric Plant, the City Electric Plant distribution system, the City Gas Plant and the City Gas distribution system. The commission shall buy all materials, supplies and fuel in accordance with the charter provisions for purchases and contracts. It may enter into contracts subject to the same limitations imposed on the city council, and may sue and be sued in its own name. It shall regulate the distribution, use and sale of electricity and gas within and without the city limits, collect for services, and shall fix the rates for all such sales and services for public and private use, subject to right of the council to veto any proposed charge and rate by a four -fifths vote. Such veto power shall be exercised, if at all, within 30 days after the council has received notice of any proposed change in charge and rate. The commission shall have power and authority to extend, add to, change or modify the electric system and the gas system, and to do any and all things it may deem necessary and proper for operation except as by this chapter otherwise restricted or qualified. The cost of extended service or installation thereof shall in no case create any general obligation upon the City. It shall employ such competent help as may be necessary to properly operate the plant, and pay these employees such compensation as the commission deems proper. The commission shall not have power to sell, lease, rent or in any way dispose of or encumber or permit the electric plant or the gas system to come under the control of any person or corporation whatever. The commission may pledge the net earnings of the electric plant and/or gas plant and system, after providing for the payment of all operating and maintenance charges and setting aside annually an amount sufficient to meet the interest and principal required of any previously created obligations of the plant, to secure payment of any previously created obligations of the plant, to secure payment of any equipment purchased for said plants and systems. Section 11.05. TRANSFER OF FUNDS. On or before September 1 of each year, the commission and the city council shall exchange information regarding the financial resources and financial needs of both the commission and the City, and shall reach agreement on the amount of surplus utility funds, if any, which are reasonably available for transfer to the general fund of the City during the next calendar year. Surplus utility funds reasonably available shall be transferred to the city general fund. It shall be mandatory upon the commission to transfer funds from earnings to the City to meet all interest and support principal required on obligations of the City incurred by the City in the construction of the gas and electric plants and systems. Such funds shall not be considered surplus funds. Funds so turned over to the City by the commission shall, during such time as the bonded indebtedness remains currently unpaid in connection with construction of the gas and electric plants and systems, be used solely for the purpose of retiring such currently unpaid indebtedness. Section 11.06. BY-LAWS AND REGULATIONS. The commission may make and enforce such reasonable by-laws and regulations as may be necessary to carry into effect the objectives and purposes of this chapter. All such by-laws and regulations are to be entered in a book kept for that purpose by the secretary and signed by the president and secretary. Section 11.07. REPORTS. The commission shall keep a record of all of its financial operations and shall furnish monthly to the city council summarized statements showing receipts, disbursements, and liabilities for such period of time. The commission shall publish a summarized audited annual statement in the official city newspaper. Such statement shall be prepared by a certified public accountant. Section 11.08. REMOVAL OF COMMISSIONERS. If a commissioner is guilty of malfeasance or misfeasance in office, has become incapacitated to hold office, or ceases to be a resident of the City of Hutchinson, and such fact is brought to the City Council by council investigation or a petition of ten (10) or more voters of the City of Hutchinson, the commissioner may be removed from office by a four -fifths (4/5) majority vote of the council. Upon the filing of any such fact, together with a copy of such charges, such commissioner shall be notified of the time and place where the council will meet to consider such charges. Notice shall be given at least ten days before the meeting, at which time such commissioner shall have the right to be present and produce testimony and evidence. No member of the commission shall continue in office after the loss of any qualification required for appointment to that position. Section 11.09. SALE OF PUBLIC UTILITY. The public utility owned by the City shall not be sold or otherwise disposed of by the City unless the full terms of the proposition of sale or other disposition are embodied in an ordinance approved by the city council and by a majority of the voters voting thereon at a general or special municipal election. Approval by the voters as described herein shall not apply to the sale or other disposition of component parts of the public utility which are no longer needed for public utility purposes. Section 11.10. FISCAL YEAR. The fiscal year of the Hutchinson Utilities Commission shall be the calendar year.