08-26-2020 HUCCP
HUTCHINSON UTILITIES COMMISSION
AGENDA
REGULAR MEETING
August 26, 2020
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
i. Hutchinson Utilities Commission
ii. Establishing a New Electric/Natural Gas Account
iii. Deposit Requirement Residential
iv. Deposit Requirement Commercial/Industrial
v. Terminating Electric/Natural Gas Service by Customer
vi. Errors in Billing
vii. Payment of Your Bill
viii. Automatic Bill Payment Plan
ix. Budget Payment Plan
x. Minnesota Cold Weather Rule
b. Approve Changes
i. Definition of Your Bill
ii. Explanation of Billing Procedure
7. UNFINISHED BUSINESS
8. NEW BUSINESS
a. Approve Rate Adjustments for 2020 & 2021
b. Approve Sale of Capacity to NextEra Energy Marketing
c. Approve Rate Schedule for Electric Vehicle Chargers
9. ADJOURN
MINUTES
Regular Meeting Hutchinson Utilities Commission
Wednesday, July 29, 2020
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; GM Jeremy Carter;
Attorney Marc Sebora;
Absent: Commissioner Monty Morrow, Commissioner Anthony Hanson
1. Conflict of Interest
2. Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
Motion by Commissioner Cheney, second by Commissioner Wendorff to approve
the Consent Agenda. Motion carried unanimously.
3. Approve Financial Statements
Commissioner Hanson joined the meeting at 3:02pm
GM Carter presented the Financial Statements. In the Electric Division, net profit
increased by $198,785 mostly due to receiving insurance proceeds from the
transformer fire of $240k. There was not a power cost adjustment (PCA) for June,
which will most likely be the last month with no PCA. In the Natural Gas Division,
June 2020 financial numbers are very similar to June 2019.
Motion by Commissioner Wendorff, second by Commissioner Cheney to approve
the financial statements. Motion carried unanimously.
4. Open Forum
5. Communication
a. City Administrator Matthew Jaunich Absent
b. Divisions
i. Dan Lang, Engineering Services Manager Absent
ii. Dave Hunstad, Electric Transmission/Distribution Manager Absent
iii. Randy Blake, Production Manager Absent
iv. John Webster, Natural Gas Division Director Absent
v. Jared Martig, Financial Manager- Absent
c. Human Resources - Brenda Ewing Absent
d. Legal Marc Sebora
1
i. Nothing to report
e. General Manager Jeremy Carter
i. Power outage earlier in the day that lasted about 10 minutes. Traced fault
back and Staff will assess into if a new wire or new conductor is needed.
ii. Projects are going well, along with maintenance and generation.
6. Policies
a. Review Policies
i. Appendices of Exempt Handbook
ii. Appendices of Non-Exempt Handbook
No changes recommended at this time.
b. Approve Changes
No changes recommended at this time.
7. Unfinished Business
a. None
8. New Business
a. Re-adopt the Data Practices Act & Public Records Request Policy
Mr. Sebora presented Re-adopt the Data Practices Act & Public Records Request
Policy. The State of Minnesota requires that political subdivisions like HUC adopt
a data practices policy, which guides both the HUC and members of the public in
obtaining information from HUC. State of Minnesota also requires that HUC adopt
the data practices policy annually prior to August 1.
A motion by Commissioner Hanson, second by Commissioner Cheney to Re-
adopt the Data Practices Act & Public Records Request Policy. Motion carried
unanimously.
b. Approve the Continuity of Operation Plan
GM Carter presented the Continuity of Operation Plan. Originally, HUC had an
older internal plan. With the current COVID-19 Pandemic, Staff has been working
on making the needed changes and updates to encompass more of an overall
plan. The Continuity of Operation Plan has been updated with Centers for
Disease (CDC) and MN Department of Health guidelines. Since HUC is
considered an essential operation, Staff needs to do what is possible to protect
the workers by also keeping the power on out in the community. This Continuity
of Operation Plan is a broad document and changes will be incorporated as
needed and on an annual basis.
2
The Commission Board agreed that the Continuity of Operation Plan should be
reviewed annually.
A motion by Commissioner Cheney, second by Commissioner Hanson to
Approve the Continuity of Operation Plan. Motion carried unanimously.
c. Approve Virginia Transformer Corporation Contract Plant #2 25/46.7 MVA
LCT Transformer
President Martinez stated that Staff is still waiting for the Certificates of Insurance
for this item and item d. A special meeting will be held for both agenda items
when Staff receives the Certificates of Insurance. Therefore, agenda item c and d
will be tabled from this meeting.
A motion by Commissioner Hanson, second by Commissioner Wendorff to table
both agenda items c and d. Motion carried unanimously.
d. Approve Virginia Transformer Corporation Contract Plant #2 Grounding
Transformer
This item was tabled from above.
e. Approve Requisition #8478 CE Power Plant #2 Substation Improvements
GM Carter presented Approval of Requisition #8478 CE Power Plant #2
Substation Improvements. Due to the Plant 2 substation transformer fire, HUC
will need to upgrade the site to accommodate the new transformers and
switchgear. Staff is requesting approval to allow CE Power to provide the
required technical labor, supervision, basic equipment, materials, and engineering
to perform the scope of work.
Commissioner Hanson inquired if there are any issues moving forward with this
agenda item if the agenda items c and d were tabled from above. GM Carter
stated that there are no issues since the specs on both the Transformer contracts
will stay the same; Staff is just waiting for the Certificates of insurance.
A motion by Commissioner Wendorff, second by Commissioner Hanson to
Approve Requisition #8478 CE Power Plant #2 Substation Improvements.
Motion carried unanimously.
f. Solar Array Discussion
3
GM Carter initiated the Solar Array discussions. GM Carter noted that revised
numbers were sent out to all the commissioners from two developers that do handle
utility scale solar systems. Along with the revised numbers, points to consider are
financing structures and if this could be self-funded or financed through a PPA
structure. Conversations were held on the size and price of a solar array or solar
garden that HUC would consider for the community along with moving forward with
an RFP. There are many programs that can be established out of solar array project
of a larger scale or with a second phased approached. .
Consensus from the Commission Board is to proceed on receiving pricing and to
continue down the path of Solar Array.
g. Great Energy Choices Discussion
GM Carter noted this should be stated Bright Energy Choices not Great Energy
Choices. GM Carter initiated the Bright Energy Choices discussion. A wholesale
supplier provides this program. The wholesale supplier on behalf of its members
provides customers in town with the ability to be 100% renewable or 100% carbon
free if customers choose to be. For the amount of KWH that is needed to become
100% renewable or 100% carbon free HUC would submit those KWH to MRES
on a regular basis. Customers would essent
Energy Credits) that signify the amount of KWH going to the customer from HUC
through MRES are renewables or carbon free sources. Customers would now
have certification/ certificates that validate renewables came from a wind farm,
solar garden or other renewable source. GM Carter noted that many municipal
utilities are involved with Bright Energy Choices and have customers that are a
part of this program. There is an up charge/auction cost of .05 cent added onto
the KWH that HUC would be buying. This .05 cent could be passed on to the
offered in their current power supply portfolios.
Discussions were held on when a program like this could be rolled out, the length
and flexibility a customer has to stay on this program and if this program
competes or compliments the proposed solar project.
Consensus from the Commission Board is to proceed with the Bright Energy
Choices Program, along with passing the .05 cent to the customer.
h. Electric/Natural Gas Glide Path Discussion
GM Carter initiated the Electric/Natural Gas Glide Path discussions. GM Carter
recapped conversations and meetings that were held on the COS study from
previous years. Utility Financial Services had proposed a 2-year rate adjustment
for both the Electric and Natural Gas division. As part to the rate designs for each
4
division, a 6-year glide path for the Electric division and a 9-year glide path for the
Natural Gas division was determined. Currently HUC has been using the first two
rate adjustments that were adopted 2 years ago, that went into effect Oct 2018
and Oct 2019. Strategic Planning meeting, discussions were held
on if HUC is to continue moving down the glide paths to rebalance the customer
classes. GM Carter noted if the Commission wants to stay on the same
implementation date of Oct 1, conversations are now needed to stay ahead of
that date because the City Council needs time to veto any previous rate
adjustment changes if so chosen.
GM Carter reviewed an overall table of what the COS rates were back then,
where the rates have been and what the proposed rates will be for the next 2
years to show how the glide paths have been working.
After discussions were held, the consensus of the Commission Board is to stay
on the current glide path for all customers and businesses. GM Carter will plan
on having a resolution for the next 2 years at the August Commission meeting.
9. Adjourn
There being no further business, a motion by Commissioner Wendorff, second by
Commissioner Cheney to adjourn the meeting at 4:12p.m. Motion carried
unanimously.
__________________________
Robert Wendorff, Secretary
ATTEST: _________________________
Don Martinez, President
5
MINUTES
SpecialMeetingHutchinson Utilities Commission
Thursday, August 6, 2020
Call to order 7:30 a.m.
President Morrow called the meeting to order. Members present: President Don Martinez;
Secretary Robert Wendorff; Commissioner Matt Cheney; General Manger Jeremy Carter;
Absent: Commissioner Monty Morrow; Commissioner Anthony Hanson; Attorney Marc
Sebora
Others present: Angie Radke
The purpose of the special meeting is to Approve the Virginia Transformer Corporation
Contract Plant #2 25/46.7 MVA LTC Transformer and Approve the Virginia Transformer
Corporation Contract Plant #2 Grounding Transformer that were both tabled from the
July Commission meeting.
GM Carter presented the Virginia Transformer Corporation Contract Plant #2 25/46.7
MVA LTC Transformer and stated that the Certificate of Insurance has now been received
from Virginia Transformer Corporation. GM Carter noted clarification on the warranty
criteria. It was also noted that the contract includes a change order to subtract sales tax
from the original bid amount, and to include the 1.5% discount for also purchasing the
4.025 MVA Grounding Transformer. Once approved, installation could happen in
December or early Spring. Discussions were held if the insurance companies are
covering all the costs of the fire.
Motion by Commissioner Cheney, second by Commissioner Wendorff to Approve the
Virginia Transformer Corporation Contract Plant #2 25/46.7 MVA LTC Transformer.
Motion carried unanimously.
GM Carter presented the Virginia Transformer Corporation Contract Plant #2 Grounding
Transformer. GM Carter noted that the contract includes a change order to subtract sales
tax from the original bid amount, and to include the 1.5% discount for also purchasing the
25/46.7 MVA Transformer.
Motion by Commissioner Wendorff, second by Commissioner Cheney to Approve the
Virginia Transformer Corporation Contract Plant #2 Grounding Transformer. Motion
carried unanimously.
There being no further business, a motion by Commissioner Cheney, second by
Commissioner Wendorff to adjourn the meeting at 7:43 a.m. Motion was unanimously
carried.
__________________________
Robert Wendorff, Secretary
ATTEST: _________________________
Don Martinez, President
HUTCHINSON UTILITIES COMMISSION
COMBINED DIVISIONS
FINANCIAL REPORT FOR JULY, 2020
July, 2020 MonthYear to Date 58.3% of Year Comp.
20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud
Combined Division
Customer Revenue$ 2,706,125$ 2,928,735 $ (222,611)(7.6%)$ 19,568,366$ 21,264,979$ (1,696,614)(8.0%)$ 35,819,11654.6%
Sales for Resale$ 333,172$ 336,799$ (3,626)(1.1%)$ 1,368,377$ 1,566,859$ (198,482) (12.7%)$ 3,007,25045.5%
NU Transportation$ 82,372$ 81,605$ 7670.9%$ 579,212 $ 575,443$ 3,7700.7%$ 898,64064.5%
Electric Division Transfer$ 55,440$ 54,982$ 4580.8%$ 388,082 $ 384,873$ 3,2080.8%$ 665,28358.3%
Other Revenues$ 28,139$ 49,742$ (21,602) (43.4%)$ 655,791 $ 310,658$ 345,134111.1%$ 466,207140.7%
Interest Income$ 40,103$ 51,599$ (11,496) (22.3%)$ 291,820 $ 284,917$ 6,9032.4%$ 383,45676.1%
TOTAL REVENUES$ 3,245,352$ 3,503,461 $ (258,110)(7.4%)$ 22,851,648$ 24,387,729$ (1,536,081)(6.3%)$ 41,239,95255.4%
Salaries & Benefits$ 589,295$ 484,049$ 105,24621.74%$ 3,873,424$ 3,515,590$ 357,83310.2%$ 6,946,88055.8%
Purchased Commodities$ 1,514,311$ 1,646,100 $ (131,789)(8.0%)$ 11,009,834$ 12,100,402$ (1,090,568)(9.0%)$ 19,252,47757.2%
Transmission$ 233,161$ 306,800$ (73,639) (24.0%)$ 1,240,650$ 1,611,482$ (370,832) (23.0%)$ 2,680,00046.3%
Generator Fuel/Chem.$ 161,495$ 135,326$ 26,16919.3%$ 284,038 $ 289,239$ (5,200)(1.8%)$ 825,87534.4%
Depreciation$ 327,083$ 327,083$ -0.0%$ 2,289,583$ 2,289,583$ - 0.0%$ 3,925,00058.3%
Transfers (Elect./City)$ 211,040$ 188,434$ 22,60612.0%$ 1,477,280$ 1,319,037$ 158,24312.0%$ 2,532,47558.3%
Operating Expense$ 244,953$ 304,420$ (59,467) (19.5%)$ 1,354,588$ 1,443,927$ (89,338)(6.2%)$ 2,605,31352.0%
Debt Interest$ 89,542$ 97,334$ (7,792)(8.0%)$ 626,795 $ 681,337$ (54,542)(8.0%)$ 1,074,50758.3%
TOTAL EXPENSES$ 3,370,880$ 3,489,546 $ (118,666)(3.4%)$ 22,156,193$ 23,250,597$ (1,094,404)(4.7%)$ 39,842,52755.6%
NET PROFIT/(LOSS)$ (125,528)$ 13,915$ (139,443)(1,002.1%)$ 695,455 $ 1,137,132$ (441,677) (38.8%)$ 1,397,42549.8%
Combined Divisions - Financial/Operating Ratios
JulyJulyYTD YTD 2020HUC
20202019Change20202019ChangeBudgetTarget
Gross Margin %29.2%27.2%2.1%32.6%32.6%0.0%34.6%26% - 28%
Operating Income Per Revenue $ (%)-3.2%0.9%-4.1%1.9%5.7%-3.8%4.6%1%-4%
Net Income Per Revenue $ (%):-3.9%0.4%-4.3%3.0%4.7%-1.6%3.4%0%-1%
Notes/Graphs:
HUTCHINSON UTILITIES COMMISSION
ELECTRIC DIVISION
FINANCIAL REPORT FOR JULY, 2020
July, 2020 MonthYear to Date 58.3% of Year Comp.
20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud
Electric Division
Customer Revenue$ 2,362,547$ 2,540,259$ (177,712)(7.0%)$ 13,727,279$ 14,654,163$ (926,884) (6.3%)$ 25,627,44853.6%
Sales for Resale$ 333,172$ 336,799 $ (3,626) (1.1%)$ 1,368,377$ 1,566,859$ (198,482) (12.7%)$ 3,007,25045.5%
Other Revenues$ 8,793 $ 15,043$ (6,250) (41.5%)$ 442,084$ 119,814$ 322,270269.0%$ 179,499246.3%
Interest Income$ 21,446$ 27,193$ (5,748) (21.1%)$ 155,668$ 152,599$ 3,0692.0%$ 208,45674.7%
TOTAL REVENUES$ 2,725,958$ 2,919,294$ (193,337)(6.6%)$ 15,693,408$ 16,493,435$ (800,028) (4.9%)$ 29,022,65354.1%
Salaries & Benefits$ 441,292$ 360,467 $ 80,82522.4%$ 2,891,958$ 2,605,418$ 286,54111.0%$ 5,074,75957.0%
Purchased Power$ 1,304,993$ 1,456,024$ (151,030)(10.4%)$ 7,695,158$ 8,337,454$ (642,296) (7.7%)$ 13,480,33257.1%
Transmission$ 233,161$ 306,800 $ (73,639)(24.0%)$ 1,240,650$ 1,611,482$ (370,832) (23.0%)$ 2,680,00046.3%
Generator Fuel/Chem.$ 161,495$ 135,326 $ 26,16919.3%$ 284,038$ 289,239$ (5,200)(1.8%)$ 825,87534.4%
Depreciation$ 241,667$ 241,667 $ -0.0%$ 1,691,667$ 1,691,667$ -0.0%$ 2,900,00058.3%
Transfers (Elect./City)$ 163,236$ 147,172 $ 16,06410.9%$ 1,142,649$ 1,030,203$ 112,44610.9%$ 1,958,82658.3%
Operating Expense$ 198,130$ 231,147 $ (33,017)(14.3%)$ 888,819$ 1,011,065$ (122,246) (12.1%)$ 1,654,94353.7%
Debt Interest$ 44,471$ 46,555$ (2,083) (4.5%)$ 311,300$ 325,883$ (14,583) (4.5%)$ 533,65758.3%
TOTAL EXPENSES$ 2,788,445$ 2,925,157$ (136,712)(4.7%)$ 16,146,238$ 16,902,409$ (756,171) (4.5%)$ 29,108,39255.5%
NET PROFIT/(LOSS)$ (62,487)$ (5,863)$ (56,625)965.8%$ (452,830)$ (408,974)$ (43,856) 10.7%$ (85,739)528.1%
July, 2020 MonthYear to Date 58.3% of Year Comp.
20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud
Electric Division
Residential6,561,1735,793,291 767,882 13.25%31,488,82429,671,266 1,817,558 6.13% 51,590,88961.0%
All Electric201,861168,273 33,58819.96%1,597,1561,605,242 (8,086) (0.50%) 2,545,49762.7%
Small General1,834,5281,838,097 (3,569)(0.19%)10,493,85811,134,517 (640,659) (5.75%) 18,956,24855.4%
Large General7,897,0907,812,850 84,2401.08%45,247,84047,180,070 (1,932,230) (4.10%) 79,933,58356.6%
Industrial11,617,00012,660,000 (1,043,000)(8.24%)68,682,00068,879,000 (197,000) (0.29%) 129,279,66653.1%
Total KWH Sold 28,111,652 28,272,511 (160,859)(0.57%) 157,509,678 158,470,095 (960,417)(0.61%) 282,305,88355.8%
Financial/Operating Ratios
JulyJulyYTD YTD 2020HUC
20202019Change20202019ChangeBudgetTarget
Gross Margin %25.2%20.9%4.3%25.1%24.8%0.3%28.7%24% - 28%
Operating Income Per Revenue $ (%)-1.7%0.5%-2.2%-4.6%-1.5%-3.1%0.8%0%-5%
Net Income Per Revenue $ (%):-2.3%-0.2%-2.1%-2.9%-2.5%-0.4%-0.3%0%-5%
Customer Revenue per KWH:$0.0840$0.0898-$0.0058$0.0867$0.0920-$0.0053$0.0903$0.0903
Total Power Supply Exp. per KWH:$0.0718$0.0809-$0.0091$0.0720$0.0775-$0.0055$0.0728$0.0728
Notes/Graphs:
Net loss increased $56,625 over July 2019. However, if the PCA was applied appropriately in July the net loss would only have been $282. (See note below)
Sales for Resale of $333,172 consisted of $88,922 in market sales, $98,000 in capacity sales to Rice Lake and $146,250 in capacity sales to AEP. July 2019 Sales for
Resale of $336,799 consisted of $20,279 in market sales, $36,400 in monthly tolling fees from Transalta, $130,620 in Transalta energy sales, $13,500 in capacity sales
to AEP, and $136,000 in capacity sales to SMMPA. July 2018 Sales for Resale of $338,970 consisted of $23,860 in market sales, $35,600 in Transalta tolling fees,
$163,510 in Transalta energy sales, and $116,000 SMMPA capacity sales.
Overall Purchased Power decreased by $151,030. MRES purchases increased by $24 and market purchases/MISO costs decreased by $151,054.
There was no power cost adjustment for July leaving the total at $249,268 YTD. There was an error in the system control data which if caught before
the bills were processed would have resulted in $62,205 being collected through the PCA for July. This amount will be added to the formula for
determining the PCA for August.
Last year's power cost adjustment for July 2019 generated $185,652 in additional revenue for the month and $1,150,003 YTD.
HUTCHINSON UTILITIES COMMISSION
GAS DIVISION
FINANCIAL REPORT FOR JULY, 2020
July, 2020 MonthYear to Date 58.3% of Year Comp.
20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud
Gas Division
Customer Revenue$ 343,578$ 388,476$ (44,898) (11.6%)$ 5,841,087 $ 6,610,816$ (769,729)(11.6%)$ 10,191,66857.3%
Transportation$ 82,372$ 81,605 $ 7670.9%$ 579,212$ 575,443 $ 3,7700.7%$ 898,640 64.5%
Electric Div. Transfer$ 55,440$ 54,982 $ 4580.8%$ 388,082$ 384,873 $ 3,2080.8%$ 665,283 58.3%
Other Revenues$ 19,346$ 34,698 $ (15,352) (44.2%)$ 213,707$ 190,843 $ 22,864 12.0%$ 286,708 74.5%
Interest Income$ 18,658$ 24,405 $ (5,748)(23.6%)$ 136,152$ 132,318 $ 3,8342.9%$ 175,000 77.8%
TOTAL REVENUES$ 519,394$ 584,167$ (64,773) (11.1%)$ 7,158,240 $ 7,894,293$ (736,053)(9.3%)$ 12,217,29958.6%
Salaries & Benefits$ 148,002$ 123,582$ 24,42019.8%$ 981,465$ 910,172 $ 71,293 7.8%$ 1,872,12152.4%
Purchased Gas$ 209,318$ 190,076$ 19,24210.1%$ 3,314,676 $ 3,762,948$ (448,272)(11.9%)$ 5,772,14557.4%
Operating Expense$ 46,823$ 73,273 $ (26,450) (36.1%)$ 465,770$ 432,862 $ 32,908 7.6%$ 950,370 49.0%
Depreciation$ 85,417$ 85,417 $ -0.0%$ 597,917$ 597,917 $ -0.0%$ 1,025,00058.3%
Transfers (City)$ 47,804$ 41,262 $ 6,54215.9%$ 334,632$ 288,835 $ 45,797 15.9%$ 573,649 58.3%
Debt Interest$ 45,071$ 50,779 $ (5,708)0.0%$ 315,496$ 355,454 $ (39,958)(11.2%)$ 540,850 58.3%
TOTAL EXPENSES$ 582,435$ 564,389$ 18,0463.2%$ 6,009,955 $ 6,348,188$ (338,232)(5.3%)$ 10,734,13556.0%
NET PROFIT/(LOSS)$ (63,041)$ 19,778 $ (82,819) (418.7%)$ 1,148,285 $ 1,546,106$ (397,821)(25.7%)$ 1,483,16477.4%
July, 2020 MonthYear to Date 58.3% of Year Comp.
20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud
Gas Division
Residential6,251,6856,367,049 (115,364) (1.81%)251,855,085291,307,554 (39,452,469)(13.54%) 422,479,00059.6%
Commercial7,784,4688,380,337 (595,869) (7.11%)189,953,502218,452,962 (28,499,460)(13.05%) 331,731,00057.3%
Industrial52,600,62448,892,422 3,708,2027.58%525,212,426517,078,709 8,133,7171.57% 803,079,00065.4%
Total CF Sold 66,636,777 63,639,808 2,996,9694.71% 967,021,013 1,026,839,225 (59,818,212)(5.83%) 1,557,289,00062.1%
Financial/Operating Ratios
JulyJulyYTD YTD 2020HUC
20202019Change20202019ChangeBudgetTarget
Gross Margin %52.1%61.4%-9.3%49.3%49.2%0.1%49.0%37%-42%
Operating Income Per Revenue $ (%)-11.6%3.1%-14.7%16.5%21.3%-4.8%13.8%11%-16%
Net Income Per Revenue $ (%):-13.1%3.8%-16.9%16.9%20.4%-3.6%12.6%6%-11%
Contracted Customer Rev. per CF:$0.0035$0.0036-$0.0001$0.0036$0.0041-$0.0004$0.0040$0.0040
Customer Revenue per CF:$0.0092$0.0128-$0.0036$0.0085$0.0086$0.0000$0.0089$0.0089
Total Nat. Gas Supply Exp. per CF:$0.0035$0.0032$0.0002$0.0036$0.0038($0.0002)$0.0039$0.0039
Notes/Graphs:
July 2020 had a net loss of $63,041 which is a negative change of $82,819 from July of 2019.
July's fuel cost credit adjustment was $3.77621/MCF totalling $72,992 for the month and $533,180 YTD.
July 2019 credits totalled $64,847 for the month and $630,162 YTD.
HUTCHINSONUTILITIESCOMMISSION
BALANCESHEET-CONSOLIDATED
JULY 31, 2020
ElectricGasTotalTotal Net Change
DivisionDivision20202019Total(YTD)
Current Assets
Cash 5,826,689.92 10,307,778.53 16,134,468.45 15,794,745.65 339,722.80
Petty Cash 680.00 170.00 850.00 850.00 -
Capital Expenditures - Five Yr. CIP 2,750,000.00 700,000.00 3,450,000.00 3,450,000.00 -
Payment in Lieu of Taxes 1,293,543.00 573,649.00 1,867,192.00 1,601,424.00 265,768.00
Rate Stabilization - Electric 261,197.43 - 261,197.43 372,736.68 (111,539.25)
Rate Stabilization - Gas - 651,306.61 651,306.61 651,306.61 -
Catastrophic Funds 400,000.00 100,000.00 500,000.00 500,000.00 -
Bond Interest Payment 2017 1,385,770.85 - 1,385,770.85 1,289,104.15 96,666.70
Bond Interest Payment 2012 - 1,330,566.68 1,330,566.68 1,313,537.51 17,029.17
Debt Service Reserve Funds 522,335.64 2,188,694.02 2,711,029.66 2,711,029.66 -
Total Current Assets 12,440,216.84 1 5,852,164.84 28,292,381.68 2 7,684,734.26 607,647.42
Receivables
Accounts (net of uncollectible allowances) 2,372,843.57 469,066.38 2,841,909.95 3,280,503.68 (438,593.73)
Interest 57,982.32 57,982.32 115,964.64 47,264.58 68,700.06
Total Receivables 2,430,825.89 5 27,048.70 2,957,874.59 3 ,327,768.26 (369,893.67)
Other Assets
1,454,479.77 456,480.05 1,712,398.18
Inventory 1,910,959.82 198,561.64
13.92 46,036.24 178,312.64
Prepaid Expenses 46,050.16 (132,262.48)
108,579.22 -
Sales Tax Receivable 108,579.22 50,737.96 57,841.26
Deferred Outflows - Electric 219,249.00 -
219,249.00 494,053.00 (274,804.00)
Deferred Outflows - Gas - 73,083.00
73,083.00 164,685.00 (91,602.00)
1,782,321.91 5 75,599.29 2,357,921.20 2 ,600,186.78 (242,265.58)
Total Other Assets
Total Current Assets 16,653,364.64 1 6,954,812.83 33,608,177.47 3 3,612,689.30 (4,511.83)
Capital Assets
Land & Land Rights 690,368.40 3,899,918.60 4,590,287.00 4,590,287.00 -
Depreciable Capital Assets 91,542,350.19 42,001,576.49 133,543,926.68 131,890,370.18 1,653,556.50
Accumulated Depreciation (59,592,048.95) (17,762,803.54) (77,354,852.49) (73,547,373.78) (3,807,478.71)
Construction - Work in Progress 16,449,692.10 351,668.97 16,801,361.07 15,912,604.56 888,756.51
Total Net Capital Assets 49,090,361.74 2 8,490,360.52 77,580,722.26 7 8,845,887.96 (1,265,165.70)
Total Assets 6 5,743,726.38 4 5,445,173.35 1 11,188,899.73 1 12,458,577.26 ( 1,269,677.53)
HUTCHINSONUTILITIESCOMMISSION
BALANCESHEET-CONSOLIDATED
JULY 31, 2020
ElectricGasTotalTotal Net Change
DivisionDivision20202019Total(YTD)
Current Liabilities
Current Portion of Long-term Debt
Bonds Payable 645,000.00 1,455,000.00 2,100,000.00 1,995,000.00 105,000.00
Bond Premium - 185,608.32 185,608.32 185,608.32 -
Accounts Payable 2,100,455.63 529,884.31 2,630,339.94 3,299,768.25 (669,428.31)
Accrued Expenses
Accrued Interest 88,942.72 90,141.68 179,084.40 194,667.72 (15,583.32)
Accrued Payroll 126,005.37 38,186.57 164,191.94 87,022.24 77,169.70
Total Current Liabilities 2,960,403.72 2 ,298,820.88 5,259,224.60 5 ,762,066.53 (502,841.93)
Long-Term Liabilities
Noncurrent Portion of Long-term Debt
2017 Bonds 15,405,000.00 - 15,405,000.00 16,050,000.00 (645,000.00)
2012 Bonds - 11,075,000.00 11,075,000.00 12,530,000.00 (1,455,000.00)
Bond Premium 2012 579,920.64 989,910.67 1,569,831.31 1,788,896.59 (219,065.28)
Pension Liability - Electric 2,686,985.00 - 2,686,985.00 2,700,290.00 (13,305.00)
Pension Liability - Electric OPEB 76,502.00 - 76,502.00 72,192.00 4,310.00
Pension Liability - Nat Gas - 895,662.00 895,662.00 900,097.00 (4,435.00)
Pension Liability - Nat Gas OPEB - 25,501.00 25,501.00 24,064.00 1,437.00
Accrued Vacation Payable 380,134.01 146,202.28 526,336.29 477,451.52 48,884.77
Accrued Severance 81,360.39 33,739.79 115,100.18 106,630.34 8,469.84
Deferred Outflows - Electric 550,772.00 - 550,772.00 804,800.00 (254,028.00)
Deferred Outflows - Nat Gas - 183,591.00 183,591.00 268,267.00 (84,676.00)
Total Long-Term Liabilities 19,760,674.04 1 3,349,606.74 33,110,280.78 3 5,722,688.45 (2,612,407.67)
Net Position
Retained Earnings 43,022,648.62 29,796,745.73 72,819,394.35 70,973,822.28 1,845,572.07
Total Net Position 43,022,648.62 2 9,796,745.73 72,819,394.35 7 0,973,822.28 1,845,572.07
Total Liabilities and Net Position 65,743,726.38 4 5,445,173.35 111,188,899.73 1 12,458,577.26 (1,269,677.53)
Hutchinson Utilities Commission
Cash-Designations Report, Combined
7/31/2020
Change in
Financial Annual Balance, Balance, Cash/Reserve
InstitutionCurrent Interest RateInterestJuly 2020 June 2020 Position
Savings, Checking, Investmentsvariesvariesvaries 28,292,381.68 28,439,398.86 (147,017.18)
Total Operating Funds 28,292,381.68 28,439,398.86 (147,017.18)
Combined Divisions - Total Funds 28,292,381.68 28,439,398.86 (147,017.18)
Restricted Funds:
Debt Reserve RequirementsBond Covenants - sinking fund 2,716,337.53 2,451,795.33 264,542.20
Debt Reserve RequirementsBond Covenants -1 year Max. P & I 2,711,029.66 2,711,029.66 -
Total Restricted Funds 5,427,367.19 5,162,824.99 264,542.20
Excess Reserves Less Restrictions, Combined 22,865,014.49 23,276,573.87 (411,559.38)
Designated Funds:
Operating ReserveMin 60 days of 2020 Operating Bud. 5,981,005.00 5,981,005.00 -
Rate Stabalization Funds 912,504.04 910,959.95 1,544.09
PILOT FundsCharter (Formula Only) 1,867,192.00 1,867,192.00 -
Catastrophic FundsRisk Mitigation Amount 500,000.00 500,000.00 -
Capital Reserves5 Year CIP ( 2020-2024 Fleet & Infrastructure Maintenance) 3,450,000.00 3,450,000.00 -
Total Designated Funds 12,710,701.04 12,709,156.95 1,544.09
Excess Reserves Less Restrictions & Designations, Combined 10,154,313.45 10,567,416.92 (413,103.47)
Financial/Operating Ratios
YEYEYEYEYTDHUC
20162017201820192020Target
Debt to Asset32.2%40.2%37.7%34.9%34.5%<50%
Current Ratio3.063.363.935.115.30>2.0
RONA2.17%1.82%3.16%2.25%0.69%>0%
Notes/Graphs:
Change in Cash Balance (From 12/31/14 to 7/31/2020)
Month End ElectricElec. ChangeNatural GasGas Change TotalTotal Change
7/31/2020 12,440,217 15,852,165 28,292,382
12/31/2019 12,124,142 316,075 13,837,040 2,015,125 25,961,181 2,331,200
12/31/2018 15,559,867 (3,435,725) 12,335,998 1,501,042 27,895,864 (1,934,683)
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
7/31/2020
Change in
Financial Annual Balance, Balance, Cash/Reserve
InstitutionInterestJuly 2020 June 2020 Position
Current Interest Rate
Operating Funds:
Savings, Checking, Investmentsvariesvariesvaries 28,292,381.68 28,439,398.86 (147,017.18)
Total HUC Operating Funds 28,292,381.68 28,439,398.86 (147,017.18)
Electric Division - Total Funds 12,440,216.84 12,581,431.11 (141,214.27)
Restricted Funds:
Debt Restricted RequirementsBond Covenants - sinking fund 1,385,770.85 1,287,549.49 98,221.36
Debt Restricted RequirementsBond Covenants -1 year Max. P & I 522,335.64 522,335.64 -
Total Restricted Funds 1,908,106.49 1,809,885.13 98,221.36
Excess Reserves Less Restrictions, Electric 10,532,110.35 10,771,545.98 (239,435.63)
Designated Funds:
Operating ReserveMin 60 days of 2020 Operating Bud. 4,367,899.00 4,367,899.00 -
Rate Stabalization Funds$400K-$1.2K 261,197.43 259,653.34 1,544.09
PILOT FundsCharter (Formula Only) 1,293,543.00 1,293,543.00 -
Catastrophic FundsRisk Mitigation Amount 400,000.00 400,000.00 -
Capital Reserves5 Year CIP ( 2020-2024 Fleet & Infrastructure Maintenance) 2,750,000.00 2,750,000.00 -
Total Designated Funds 9,072,639.43 9,071,095.34 1,544.09
Excess Reserves Less Restrictions & Designations, Electric 1,459,470.92 1,700,450.64 (240,979.72)
Financial/Operating Ratios
YEYEYEYEYTDAPPA RatioHUC
201620172018201920205K-10K Cust.Target
Debt to Asset Ratio (* w/Gen.)16.7%35.4%35.7%34.1%34.6%50.1%<50%
Current Ratio3.574.363.635.264.912.43>2.0
RONA-0.4%-0.6%-0.3%-0.4%-0.7%NA>0%
Notes/Graphs:
Hutchinson Utilities Commission
Cash-Designations Report, Gas
7/31/2020
Change in
Financial Annual Balance, Balance, Cash/Reserve
InstitutionCurrent Interest RateInterestJuly 2020 June 2020 Position
Operating Funds:
Savings, Checking, Investmentsvariesvariesvaries28,292,381.6828,439,398.86(147,017.18)
Total HUC Operating Funds 28,292,381.68 28,439,398.86 (147,017.18)
Gas Division - Total Funds 15,852,164.84 15,857,967.75 (5,802.91)
Restricted Funds:
Debt Restricted RequirementsBond Covenants - sinking fund 1,330,566.68 1,164,245.84 166,320.84
Debt Restricted RequirementsBond Covenants -1 year Max. P & I 2,188,694.02 2,188,694.02 -
Total Restricted Funds 3,519,260.70 3,352,939.86 166,320.84
Excess Reserves Less Restrictions, Gas 12,332,904.14 12,505,027.89 (172,123.75)
Designated Funds:
Operating ReserveMin 60 days of 2020 Operating Bud. 1,613,106.00 1,613,106.00 -
Rate Stabalization Funds$200K-$600K 651,306.61 651,306.61 -
PILOT FundsCharter (Formula Only) 573,649.00 573,649.00 -
Catastrophic FundsRisk Mitigation Amount 100,000.00 100,000.00 -
Capital Reserves5 Year CIP ( 2020-2024 Fleet & Infrastructure Maintenance) 700,000.00 700,000.00 -
Total Designated Funds 3,638,061.61 3,638,061.61 -
Excess Reserves Less Restrictions & Designations, Gas 8,694,842.53 8,866,966.28 (172,123.75)
Financial/Operating Ratios
YEYEYEYEYTDHUC
20162017201820192020APGA RatioTarget
Debt to Asset51.2%47.6%40.7%36.1%34.4%TBD<50%
Current Ratio2.592.744.334.965.81TBD>2.0
RONA5.6%5.0%8.3%6.4%2.9%TBD>0%
Notes/Graphs:
HUTCHINSON UTILITIES COMMISSION
Investment Report
For the Month Ended July 31, 2020
InterestCurrentDate ofDate ofParCurrentPurchaseUnrealizedPremiumNext
InstitutionDescriptionRateYTMPurchaseMaturityValueValueAmountGain/(Loss)(Discount)Call Date
Wells FargoMoney Market0.010%0.010%NANA - 499,102.32 - - -N/A
Wells FargoFHLMC0.320%0.320%07/20/202010/20/2022 305,000.00 305,094.55 305,000.00 94.55 -01/20/2021
Wells FargoCD's1.700%1.700%02/21/202002/22/2022 245,000.00 250,902.05 245,000.00 5,902.05 -N/A
Wells FargoCD's1.300%1.300%03/31/202009/30/2021 245,000.00 248,329.55 245,000.00 3,329.55 -N/A
Wells FargoCD's1.900%1.900%08/21/201908/23/2021 174,000.00 177,269.46 174,000.00 3,269.46 -N/A
Wells FargoCD's2.500%2.500%04/02/201904/05/2021 245,000.00 248,988.60 245,000.00 3,988.60 -N/A
Wells FargoCD's1.250%1.250%04/08/202004/08/2021 245,000.00 246,933.05 245,000.00 1,933.05 -N/A
Wells FargoCD's0.500%0.698%07/30/202007/30/2025 245,000.00 245,404.25 245,000.00 404.25 -01/30/2021
Wells FargoCD's2.000%2.000%08/29/202008/22/2022 200,000.00 205,750.00 200,000.00 5,750.00 -09/29/2020
Wells FargoCD's0.200%0.200%06/25/202006/23/2021 248,000.00 248,166.16 248,000.00 166.16 -N/A
Wells FargoCD's0.200%0.200%06/25/202012/28/2020 74,000.00 74,031.82 74,000.00 31.82 -N/A
Wells FargoCD's1.700%1.700%01/31/202005/03/2021 245,000.00 247,932.65 245,000.00 2,932.65 -N/A
Wells FargoCD's1.750%1.750%01/29/202007/29/2021 245,000.00 248,969.00 245,000.00 3,969.00 -N/A
Broker Total25.2% 2,716,000.00 3,246,873.46 2,716,000.00 31,771.14 -
Cetera Investment ServicesMoney Market0.100%0.100%N/AN/A - 150,417.80 - - -N/A
Cetera Investment ServicesMunicipal Bonds2.750%1.881%03/07/201608/01/2020 180,000.00 180,000.00 187,070.40 (7,070.40) 7,070.40N/A
Cetera Investment ServicesMunicipal Bonds2.300%1.715%12/11/201710/01/2020 100,000.00 100,320.00 101,595.00 (1,275.00) 1,595.00N/A
Cetera Investment ServicesMunicipal Bonds2.875%2.121%04/29/201609/01/2021 250,000.00 256,197.50 259,467.50 (3,270.00) 9,467.50N/A
Cetera Investment ServicesMunicipal Bonds3.751%2.399%04/29/201611/01/2021 250,000.00 256,297.50 267,330.00 (11,032.50) 17,330.00N/A
Cetera Investment ServicesMunicipal Bonds3.139%2.190%12/11/201709/01/2021 300,000.00 305,970.00 310,116.00 (4,146.00) 10,116.00N/A
Cetera Investment ServicesMunicipal Bonds3.436%3.436%12/20/201812/15/2021 50,000.00 48,917.00 45,155.00 3,762.00 (4,845.00)N/A
Cetera Investment ServicesMunicipal Bonds2.655%2.208%12/11/201703/01/2022 300,000.00 307,299.00 305,314.92 1,984.08 5,314.92N/A
Cetera Investment ServicesMunicipal Bonds3.000%3.118%12/20/201808/01/2022 50,000.00 51,846.00 50,377.67 1,468.33 377.67N/A
Cetera Investment ServicesMunicipal Bonds3.633%3.116%12/20/201809/01/2022 250,000.00 262,162.50 257,217.48 4,945.02 7,217.48N/A
Cetera Investment ServicesMunicipal Bonds3.240%3.240%11/17/201702/15/2023 80,000.00 77,829.60 69,633.48 8,196.12 (10,366.52)N/A
Cetera Investment ServicesMunicipal Bonds3.650%3.004%12/20/201802/01/2023 250,000.00 261,782.50 256,165.00 5,617.50 6,165.00N/A
Cetera Investment ServicesMunicipal Bonds3.075%3.236%12/20/201806/01/2023 50,000.00 52,379.50 49,746.15 2,633.35 (253.85)N/A
Cetera Investment ServicesMunicipal Bonds2.500%3.181%12/20/201808/01/2023 35,000.00 36,339.10 34,320.05 2,019.05 (679.95)N/A
Cetera Investment ServicesMunicipal Bonds3.400%3.148%12/20/201811/01/2023 125,000.00 131,147.50 126,376.25 4,771.25 1,376.25N/A
Cetera Investment ServicesMunicipal Bonds3.400%3.148%12/20/201811/01/2023 65,000.00 68,133.65 65,715.65 2,418.00 715.65N/A
Cetera Investment ServicesMunicipal Bonds1.862%1.862%01/22/202011/01/2023 150,000.00 145,791.00 139,866.00 5,925.00 (10,134.00)N/A
Cetera Investment ServicesMunicipal Bonds5.290%2.724%04/18/201906/01/2023 260,000.00 286,678.60 291,059.96 (4,381.36) 31,059.96N/A
Cetera Investment ServicesMunicipal Bonds2.854%3.173%12/20/201802/01/2024 100,000.00 105,261.00 99,605.96 5,655.04 (394.04)N/A
Cetera Investment ServicesMunicipal Bonds2.977%3.246%12/20/201803/15/2024 250,000.00 267,387.50 248,743.99 18,643.51 (1,256.01)N/A
Cetera Investment ServicesMunicipal Bonds1.940%1.821%01/13/202005/01/2024 65,000.00 67,978.30 65,570.70 2,407.60 570.70N/A
Cetera Investment ServicesMunicipal Bonds2.528%1.918%01/13/202012/01/2024 100,000.00 104,900.00 102,999.53 1,900.47 2,999.53N/A
Cetera Investment ServicesMunicipal Bonds3.922%3.429%12/20/201812/01/2024 204,000.00 224,636.64 208,181.10 16,455.54 4,181.10N/A
Cetera Investment ServicesMunicipal Bonds5.742%3.658%04/11/201908/01/2024 430,000.00 476,452.90 464,344.41 12,108.49 34,344.41N/A
Cetera Investment ServicesMunicipal Bonds4.400%3.221%04/11/201907/01/2025 500,000.00 536,205.00 539,101.11 (2,896.11) 39,101.1107/01/2023
Cetera Investment ServicesMunicipal Bonds5.640%3.007%04/18/201908/15/2025 205,000.00 182,747.25 169,737.95 13,009.30 (35,262.05)N/A
Cetera Investment ServicesMunicipal Bonds3.743%2.740%04/18/201909/15/2025 215,000.00 243,362.80 228,334.53 15,028.27 13,334.53N/A
Cetera Investment ServicesMunicipal Bonds3.379%1.934%08/19/201910/01/2025 310,000.00 337,236.60 339,739.18 (2,502.58) 29,739.18N/A
Cetera Investment ServicesMunicipal Bonds5.600%1.186%07/28/202012/01/2025 45,000.00 52,474.50 55,250.55 (2,776.05) 10,250.55N/A
Cetera Investment ServicesMunicipal Bonds4.250%3.258%04/11/201901/01/2026 500,000.00 550,945.00 529,769.03 21,175.97 29,769.03N/A
Cetera Investment ServicesMunicipal Bonds6.690%3.356%04/18/201904/15/2026 60,000.00 51,544.20 47,545.20 3,999.00 (12,454.80)N/A
Cetera Investment ServicesMunicipal Bonds5.900%1.451%07/28/202006/15/2026 75,000.00 92,323.50 93,741.75 (1,418.25) 18,741.75N/A
Cetera Investment ServicesMunicipal Bonds3.250%2.903%04/18/201908/01/2026 500,000.00 536,865.00 514,790.69 22,074.31 14,790.69N/A
Cetera Investment ServicesMunicipal Bonds2.150%2.203%07/01/201912/01/2026 40,000.00 41,626.80 40,150.64 1,476.16 150.64N/A
Cetera Investment ServicesMunicipal Bonds2.350%2.191%07/01/201912/01/2026 500,000.00 528,955.00 505,385.00 23,570.00 5,385.00N/A
Cetera Investment ServicesMunicipal Bonds2.375%1.816%09/04/201912/01/2026 90,000.00 95,742.00 93,395.70 2,346.30 3,395.70N/A
Cetera Investment ServicesMunicipal Bonds3.000%1.991%08/19/201902/01/2027 50,000.00 54,834.00 53,551.00 1,283.00 3,551.00N/A
Cetera Investment ServicesMunicipal Bonds3.150%2.034%08/19/201903/15/2027 100,000.00 110,452.00 109,138.50 1,313.50 9,138.50N/A
Cetera Investment ServicesMunicipal Bonds3.332%3.120%04/18/201904/15/2027 500,000.00 563,870.00 507,783.94 56,086.06 7,783.94N/A
Cetera Investment ServicesMunicipal Bonds3.553%2.289%08/19/201905/01/2027 55,000.00 61,195.20 60,468.04 727.16 5,468.0405/01/2026
Cetera Investment ServicesMunicipal Bonds3.865%2.470%08/19/201905/01/2027 55,000.00 62,047.70 60,986.48 1,061.22 5,986.4805/01/2025
Cetera Investment ServicesMunicipal Bonds3.000%3.101%05/18/202009/01/2027 65,000.00 70,730.40 69,180.58 1,549.82 4,180.5809/01/2025
Cetera Investment ServicesMunicipal Bonds2.817%2.817%09/25/201910/01/2027 35,000.00 28,831.60 27,969.55 862.05 (7,030.45)05/01/2025
Cetera Investment ServicesMunicipal Bonds3.230%1.828%08/19/201905/15/2027 145,000.00 165,547.95 160,827.31 4,720.64 15,827.31N/A
Cetera Investment ServicesMunicipal Bonds3.270%2.141%08/19/201903/15/2028 155,000.00 173,925.50 170,805.09 3,120.41 15,805.0909/15/2027
Cetera Investment ServicesMunicipal Bonds2.974%2.574%11/07/201904/01/2028 75,000.00 80,829.00 77,253.00 3,576.00 2,253.00N/A
Cetera Investment ServicesMunicipal Bonds3.140%2.004%08/19/201908/01/2028 500,000.00 564,205.00 547,105.00 17,100.00 47,105.0008/01/2027
Cetera Investment ServicesMunicipal Bonds3.000%2.199%05/19/202008/15/2028 90,000.00 96,462.90 95,401.80 1,061.10 5,401.8008/15/2025
Cetera Investment ServicesMunicipal Bonds3.000%1.942%08/19/201906/01/2029 115,000.00 128,409.00 125,961.80 2,447.20 10,961.80N/A
Broker Total74.8% 8,874,000.00 9,637,492.99 9,229,345.62 257,729.57 355,345.62
TOTAL INVESTMENTS100.0%$ 11,590,000.00$ 12,884,366.45$ 11,945,345.62$ 289,500.71$ 355,345.62
PORTFOLIO BY PRODUCT TYPEMATURITY SCHEDULE
7/31/2020% of6/30/2020% ofMonthlyMaturityCurrent Value%
Product TypeTotal ValueTotalTotal ValueTotalChangeLess than 1 year$2,244,861.4017.4%
Money Market$649,520.125.0%$27,216.040.2%$622,304.081 - 2 years1,851,182.0614.4%
CD's2,442,676.5919.0%2,989,045.0023.3%(546,368.41)2 - 3 years1,503,523.2511.7%
Government Bonds305,094.552.4%251,058.852.0%54,035.703 - 4 years 822,038.056.4%
Municipal Bonds9,487,075.1973.6%9,553,281.8174.5%(66,206.62)4 - 5 years1,342,194.5410.4%
TOTAL$12,884,366.45100.0%$12,820,601.70100.0%$63,764.755+ years5,120,567.1539.7%
TOTAL$12,884,366.45100.0%
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ELECTRIC DIVISION
Operating Revenue
July 2020
CLASSAMOUNTKWH$/KWH
Street Lights$0.163$0.05333
Electric Residential Service$616,857.316,561,173$0.09402
All Electric Residential Service$19,834.82201,861$0.09826
Electric Small General Service$173,156.711,834,528$0.09439
Electric Large General Service$694,850.837,897,090$0.08799
Electric Large Industrial Service$857,846.8011,617,000$0.07384
Total$2,362,546.63 28,111,655$0.08404
Power Adjustment$0.00000
Rate Without Power Adjustment$0.08404
Electric Division Year-to-Date
2020 $ Amount2019 $ Amount2020 KWH/102019 KWH/10
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 LightsResidentialAll Elec.Small Gen.Large Gen.LargeFor Resale Total
Resid.Srv.Srv.Industrial
NOTE: Sales for resale includes capacity sales, market sales and Transalta sales.
NATURAL GAS DIVISION
Operating Revenue
JULY 2020
CLASSAMOUNTMCF$/MCF
Residential$87,613.976,252$14.01375
Commercial$43,711.627,784$5.61557
Large Industrial$46,034.605,303$8.68086
Large Industrial Contracts$166,217.8147,298$3.51427
Total$343,578.0066,637$5.15596
Fuel Adjustment-$3.78000
Rate Without Fuel Adjustment$8.93596
Natural Gas Division Year-to-Date
2020 $ Amount2019 $ Amount2020 MCF2019 MCF
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
Gas ResidentialGas CommercialLarge IndustrialLarge Industrial Total
Contracts
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
Review Policies
Presenter: Agenda Item Type:
Jeremy Carter
Review Policies
Time Requested (Minutes):
5
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
As part of HUC's standard operating procedures, a continual policy review is practiced.
This month, the following policies were reviewed and no changes are recommended on
these policies at this time:
i. Hutchinson Utilities Commission
ii. Establishing a New Electric/Natural Gas Account
iii. Deposit Requirement Residential
iv. Deposit Requirement Commercial/Industrial
v. Terminating Electric/Natural Gas Service by Customer
vi. Errors in Billing
vii. Payment of Your Bill
viii. Automatic Bill Payment Plan
ix. Budget Payment Plan
x. Minnesota Cold Weather Rule
BOARD ACTION REQUESTED:
None
Fiscal Impact:
Included in current budget: Budget Change:
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
HUTCHINSON UTILITIES COMMISSION
(Hereafter referred to as HUC)
A five-member Commission governs HUC. The Commission members are appointed by
the Mayor and the City Council to each serve a five-year term. The Commission meets at
3:00 p.m. the last Wednesday of each month. The following policies are reviewed and
approved by the Commission and it reserves the right to make changes, and/or to adopt
new and amended policies, as it deems necessary from time to time. The Commission
also reserves the right to vary from its policies in special circumstances.
HUC is a municipal utility that is owned by its citizens, through the City Council and its
political subdivision, the Hutchinson Utilities Commission.
Public/Customer Hours
Monday through Friday
7:30 a.m. to 4:00 p.m.
Address & Phone
225 Michigan Street SE
Hutchinson, MN 55350-1905
(320) 587-4746
Emergency Service
Electric Outage (320) 234-0544
Gas Emergency 1-877-593-3973
(320) 587-4745
Customer Service (320) 234-0502
Web Address
www.hutchinsonutilities.com
Establishing a New Electric/Natural Gas Account
New services and meters are read or installed only during normal business hours. A new
service installation requires a 24-hour notice.
Deposit Requirement Residential
New Residential Customers:
Application for Service
An application for service is required to be completed and submitted prior to receiving
service. The application shall be accompanied by proof of customer identification,
preferably photo identification.
Deposit
A deposit is required for all new residential customers, prior to the utility account being
establis
HUC will conduct an internal account review for all new customer applications. If the
results of the review indicate the customer has an outstanding balance with HUC for
previously provided services, the outstanding balance shall be paid, in addition to the
required deposit, prior to the customer receiving service.
The amount of the deposit is equal to two times the average monthly bill for the
property/address as determined by HUC. For new residential construction with no billing
history, HUC will determine the rates based on similar construction.
A deposit may only be waived if the customer provides verification of a satisfactory
payment history for the previous 12-month period from their current or previous utility
provider indicating, the customer paid all of their bills on time with no late payment fees
attached, issued a disconnect notice and no delinquent or dishonored payments.
Existing Residential Customers Moving Within Service Territory:
A deposit is not required if the customer has a satisfactory payment history for the
previous 12-month period, as defined previously.
A deposit for existing residential customers moving within HUC service territory will be
required prior to the utilities establishing the new account for any of the following reasons:
1. The customer has been disconnected, issued a disconnect notice or had a
delinquent or dishonored payment in the previous 12 months.
2. Subsequent credit information indicates the initial application for service
was falsified.
3. The customer has the ability to pay for the utility service, but during the cold
weather rule months, had an arrears amount incurred during that period that
was 60 days or more past due.
If a deposit is required of a customer, the following will also apply:
1. If customer has no deposit with HUC, the customer will pay the deposit
2. If customer already has a deposit with HUC and this deposit amount is
greater than the new deposit required for the new address, HUC will transfer
balance of the deposit from the previous address will be applied to the
3. If the customer already has a deposit with HUC and this deposit amount is
new address. The customer will pay the balance of the deposit amount for
If a deposit is required the customer may request a written explanation for the
requirement.
Amount of Deposit: The amount of the deposit is equal to two times the average monthly
bill for the property/address as determined by HUC.
For new residential construction with no billing history, HUC will determine the rates
based on similar construction.
Refusal or Disconnection of Service: HUC may refuse or disconnect residential service
for failure to pay a required deposit.
Interest: Interest earned on a deposit is applied to the account as a credit on a calendar
year basis. The rate of interest is determined by the Minnesota Department of Commerce
and updated annually.
When the customer moves out of the HUC service area, the account is finalized. Any
deposit interest is applied to the account as a credit, and the deposit amount is applied to
the final bill. If this results in a credit balance, a check is issued to the customer for the
credit amount.
Refund: The utility shall refund the deposit of a residential customer after 12 consecutive
months of on-time payments (no late payment fees).
If a customer makes a late payment in the initial 12 months of service, the deposit will be
retained, until such time as the customer makes 12 consecutive monthly on-time
payments and incurs no late payment fees.
If the customer provides a payment history from their previous provider, and the payment
history indicates no late payment fees and no dishonored checks, then HUC will refund
the deposit. HUC must receive this information from the customer within 30 days of
customer moving into our services.
Refund at Termination of Service: On termination of residential service, and if the
customer has a deposit with HUC, HUC shall credit the deposit, with accrued interest, to
e
final bill.
Method of Refund: Any deposit or portion thereof refunded to a residential customer shall
credit.
Deposit Requirement Commercial/Industrial
Application for Service
An application for service is required to be completed and submitted prior to receiving
service. The application shall be accompanied by proof of customer identification,
preferably photo identification, and their Federal Tax ID number.
Deposit
A deposit is required for all Commercial/Industrial customers, prior to the utility account
HUC will conduct an internal account review for all new customer applications. If the
results of the review indicate the customer has an outstanding balance with HUC for
previously provided services, the outstanding balance shall be paid, in addition to the
required deposit, prior to the customer receiving service.
Existing Commercial/Industrial Customers Moving Within Service Territory: A deposit will
be waived if the Commercial/Industrial customer has a 24-month payment history with
HUC indicating the Commercial/Industrial customer has not been disconnected, issued a
disconnect notice or issued any dishonored checks.
A deposit for existing Commercial/Industrial customers moving within HUC service
territory will be required prior, to customer having utilities placed in their name, for the
following reasons:
1. If the customer has been disconnected, issued a disconnect notice or any
dishonored payment in the previous 24 months.
2. Subsequent credit information indicates the initial application for service
was falsified.
If a deposit is required of a customer, and;
1. If a customer has no deposit with HUC, the customer will pay the deposit
2. If a customer has a deposit with HUC and this deposit amount is greater
than t
for the previous address.
3. If a customer has a deposit with HUC and this deposit amount is less than
address. The customer will pay the balance of the deposit amount for the
If a deposit is required, the customer may request a written explanation for the
requirement.
Amount of Deposit: The deposit shall be equal to the two highest bills for the past 12
months rounded to the nearest dollar. In the event that the building will be used for a
different purpose than that of the previous tenant/owner, then similar use will be taken
into consideration to determine the amount of deposit.
The deposit may also be made by posting a performance bond or an Irrevocable Letter
of Credit from an FDIC insured financial institution. These options will not earn any interest
and will be terminated after 24 consecutive months of timely payments.
In the event of a new building with no billing history, then similar construction will be used
to establish the average monthly usage.
Refusal or Disconnection of Service: Commercial/Industrial service may be refused or
disconnected for failure to pay a required deposit.
Interest: Interest earned on deposits is applied to the account as a credit on a calendar
year basis. The rate of interest is determined by the Minnesota Department of Commerce
and HUC obtains that information annually.
When the Commercial/Industrial customer moves out of the HUC service area, the
account is finalized. Any deposit with interest is applied to the account as credit, and the
deposit amount is applied to the final bill. If this results in a credit balance, a check is
issued to the customer for that credit amount.
Refund: HUC shall refund the deposit of a Commercial/Industrial customer after 24
consecutive months of on-time payments (no late payment fees).
If a customer is late in making payment, then the deposit will be retained, until such time
as the customer makes 24 consecutive monthly on-time payments (no late payment fees).
Refund at Termination of Service: On termination of Commercial/Industrial service, and if
the customer has a deposit with HUC, HUC shall credit the deposit, with accrued interest,
final bill.
Method of Refund: Any deposit or portion thereof refunded to a Commercial/Industrial
customer shall be refunded by check.
Terminating Electric/Natural Gas Service by Customer
When the utility service is shut off
removed and the gas meter will be turned off and locked. The electric meter socket and
gas meter valve will have a blue seal placed on them.
At the time a customer requests the service be turned on, HUC personnel will install the
electric meter and unlock the natural gas meter valve.
pilot lights on all natural gas appliances, where appropriate. In the event the customer is
heating contractor to complete this work.
Upon the request of a customer, utility services may be temporarily terminated and billing
suspended for a specified period of time due to illness, vacation, and/or seasonal use.
Temporary terminations are charged to the customer at the rate of $40 to disconnect and
$40 to reconnect.
A. Termination for Renters
Electric and natural gas meters will be read and the final bill calculated when a
renter informs HUC they no longer wish to retain HUC services.
B. Termination for Residential/Commercial Owners
Electric and natural gas will be shut off when the property owner requests HUC to
disconnect services. For continuous service, the new owner must call HUC at a
minimum of 24 hours in advance of the requested disconnect date, and make the
necessary arrangements to have the electric/natural gas services transferred into
their name. This eliminates terminating services at that address.
C. Termination for Electrical Work
If a homeowner needs an electric meter disconnected to do any electrical work, HUC will
disconnect/reconnect the meter at no charge to the customer. Once the work is
completed, HUC will need a copy of the State Board of Electricity Certificate of Inspection,
before HUC will reconnect the electric meter.
Errors in Billing
Overcharged customer accounts will be credited on the next statement or refunded on
the final billing.
Overcharges may only be refunded within one year of the billing error occurrence.
Undercharged customer accounts may be billed for a correction within one year of the
billing error occurrence and may be billed on a separate invoice, with an explanation of
charges.
Payment of Your Bill
Payments are due by the date indicated on the statement.
Payment Locations
HUC business office at 225 Michigan Street Southeast
Drop box at either the HUC business office or Hutchinson City Center
Payment Methods
Cash, check or money order
automated phone system at (320)587-4746, Option #3 with
VISA/MasterCard/Discover/E-check
automatic bank payment plan(Savings/Checking Account)
online at www.hutchinsonutilities.com
online reoccurring credit card payment
When paying in any manner other than cash, no change will be given. No second party
or post-dated checks will be accepted and checks will not be held.
An invalid payment due to nonsufficient funds or other circumstances is treated as a non-
payment. If notification of the invalid payment is received by HUC, the customer will be
charged a $30 processing fee.
If paying by reoccurring credit/debit card, the customer needs to cancel their credit/debi
card immediately if there has been an address change.
When there is a change in the credit/debit card information that is used for reoccurring
payments, the customer will be required to update the system with the new credit/debit
card information.
For billing questions, contact HUC customer service via e-mail at
HUCbilling@ci.hutchinson.mn.us.
Automatic Bill Payment Plan
Customers may authorize automatic bill payment through ACH withdrawals from a
checking/savings account, or with the use of a credit/debit card. These payments are
withdrawn on the date the bill is due.
To authorize the withdrawals or automatic payment from a checking/savings account, the
customer must complete an Authorization form, which is available at the HUC business
office or on the HUC website.
To authorize automatic payment with a reoccurring credit/debit card, visit the HUC
If paying by reoccurring credit/debit card, the customer needs to cancel their credit/debit
card immediately if there has been an address change.
When there is a change in the credit/debit card information that is used for reoccurring
payments, the customer will be required to update the system with the new credit/debit
card information.
Setting up, changing and cancelling reoccurring credit/debit card information can only be
completed by the customer.
The customer will receive their monthly utility billing statement showing the payment
amount to be withdrawn. The customer may contact the HUC Customer Service
Department before the amount is withdrawn to dispute the billing or with any questions.
The customer will have approximately 10 days to review their bill before the money is
withdrawn.
removed from the automatic payment plan and so notified. A service charge of $30 will
Budget Payment Plan
A budget payment plan is available to residential customers who have been at their
present location for a minimum of 12 continuous months. Procedures are in place for
setting up and reviewing the budget payment plan calculation. Changes to the budget
payment amount are made at the discretion of the Customer Service Department based
erage bill from the previous 12 months. Customers will be notified,
in writing, of any changes. A customer may concurrently participate in the budget payment
plan by automatic bank payment plan or recurring credit cards.
Minnesota Cold Weather Rule
2016 Minnesota Statutes
216B.097 Cold Weather Rule; Cooperative or Municipal Utility
Subdivision 1. Application; notice to residential customer.
(a) A municipal utility or a cooperative electric association must not disconnect and
must reconnect the utility service of a residential customer during the period between
October 15 and April 15 if the disconnection affects the primary heat source for the
residential unit and all of the following conditions are met:
(1) The household income of the customer is at or below 50 percent of the state
median household income. A municipal utility or cooperative electric association utility
may (i) verify income on forms it provides or (ii) obtain verification of income from the local
energy assistance provider. A customer is deemed to meet the income requirements of
this clause if the customer receives any form of public assistance, including energy
assistance, that uses an income eligibility threshold set at or below 50 percent of the state
median household income.
(2) A customer enters into and makes reasonably timely payments under a payment
agreement that considers the financial resources of the household.
(3) A customer receives referrals to energy assistance, weatherization, conservation,
or other programs likely to reduce the customer's energy bills.
(b) A municipal utility or a cooperative electric association must, between August 15
and October 15 each year, notify all residential customers of the provisions of this section.
Subdivision 2. Notice to residential customer facing disconnection.
Before disconnecting service to a residential customer during the period between
October 15 and April 15, a municipal utility or cooperative electric association must
provide the following information to a customer:
(1) a notice of proposed disconnection;
(2) a statement explaining the customer's rights and responsibilities;
(3) a list of local energy assistance providers;
(4) forms on which to declare inability to pay; and
(5) a statement explaining available time payment plans and other opportunities to
secure continued utility service.
Subdivision 3. Restrictions if disconnection necessary.
(a) If a residential customer must be involuntarily disconnected between October 15
and April 15 for failure to comply with subdivision 1, the disconnection must not occur:
(1) on a Friday, unless the customer declines to enter into a payment agreement
offered that day in person or via personal contact by telephone by a municipal utility or
cooperative electric association;
(2) on a weekend, holiday, or the day before a holiday;
(3) when utility offices are closed; or
(4) after the close of business on a day when disconnection is permitted, unless a
field representative of a municipal utility or cooperative electric association who is
authorized to enter into a payment agreement, accept payment, and continue service,
offers a payment agreement to the customer.
Further, the disconnection must not occur until at least 20 days after the notice required
in subdivision 2 has been mailed to the customer or 15 days after the notice has been
personally delivered to the customer.
(b) If a customer does not respond to a disconnection notice, the customer must
not be disconnected until the utility investigates whether the residential unit is
actually occupied. If the unit is found to be occupied, the utility must immediately
inform the occupant of the provisions of this section. If the unit is unoccupied, the
utility must give seven days' written notice of the proposed disconnection to the local
energy assistance provider before making a disconnection.
(c) If, prior to disconnection, a customer appeals a notice of involuntary
disconnection, as provided by the utility's established appeal procedure, the utility
must not disconnect until the appeal is resolved.
Subdivision 4. Application to service limiters.
For the purposes of this section, "disconnection" includes a service or load
limiter or any device that limits or interrupts electric service in any way.
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
Approve Policy Changes
Presenter: Agenda Item Type:
Jeremy Carter
App Changes to Policies
Time Requested (Minutes):
5
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
As part of HUC's standard operating procedures, a continual policy review is
practiced. The following revisions to the policies below are recommended.
i. Definition of Your Bill
ii. Explanation of Billing Procedure
BOARD ACTION REQUESTED:
Approve Policy Changes
Fiscal Impact:
Included in current budget: Budget Change:
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
Definition of Your Bill
Your bill provides:
Account number
Due date
Payment due
Pre-authorized payment to be drawn from your bank on due date (from checking/
saving account)
Budget amount due if on the budget plan
Name/mailing address
Service address
Electric and fuel cost adjustments, if any
PIN #
Reading dates
Days used
Previous and current readings
Usage
Previous balance
Payments made and date paid
Electric and/or gas meter charges
Amount charged to each meter
Sales tax/Local tax/county tax
Any miscellaneous/trip charges
Account balance
Perforated top stub to remit with payment for timely and proper posting
If applicable, a message on the bottom of the statement indicating past due amount
Meters are read approximately every 30 days. Estimated readings may also be taken if
access to the meter is not possible or the meter has stopped working.
Explanation of Billing Procedure
A bill for services is sent to the address provided by the customer approximately 3 to 5
days after the meters have been read. The customer has approximately 10 days to pay
the bill in full by the stated due date. In accordance with state law, the City of Hutchinson
and its related entities shall have 35 days to pay bills in full.
Bills paid after the due date will incur the following charges:
A 1% per month late payment charge on any unpaid balance.
A $15 processing fee.
A late notice warning of pending disconnection is mailed to the customer and provides
the customer with approximately 20 days to pay the bill or contact the Customer Service
Department to make other arrangements. Examples of other arrangements may include
establishing a budget payment plan or payments by
behalf. Failure to make payment by the stated due date and time will be considered a
violation of the notice of pending disconnection. If full payment or other arrangements
have not been made by the deadline, HUC personnel are sent to the meter location to
disconnect utility services (see disconnection of services section).
disconnection. Customers should refer to previously sent disconnection letter for
details of date and time of disconnection.
A dishonored payment will be assessed a $30 processing fee.
A dishonored payment made to avoid disconnection, to get reconnected, or for a deposit
for service will be assessed a $30 processing fee; plus:
a. A $40 trip charge to deliver a door hanger, a notice advising the customer
they have 24 hours to make the full notice payment. Acceptable forms of
payment include cash, money order or credit card.
b. A $40 trip charge to disconnect service if payment is not received in the
form of cash, money order or credit card.
c. A $40 trip charge to reconnect service with payment made in the form of
cash, money order or credit card.
IT IS THE
ANY CHANGE OF ADDRESS.
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
Electric&NaturalGasRateStructureChange
Presenter:Agenda Item Type:
JeremyCarter
NewBusiness
Time Requested (Minutes):
10
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
UtilityFinancialServicesprovidedaCostofService(COS)studytoHUCbackin2017.
Aspartofthisanalysis,theCOSstudyidentifiedvariousfinancialbenchmarks.In
addition,considerationswerediscussedrelatingtoensuringthevariouscomponentsof
howHUCcollectsrevenuethroughitsmonthlybillingalignswellagainstthefixedand
variablecostsofoperation.
Atthattime,UtilityFinancialServicesproposedaninitial2yearratetrackadjustmentfor
boththeElectricandNaturalGasdivisions.Aspartoftheratedesignsforeachdivision,
aglidepathwasalsodeterminedforeachdivision.A6-yearglidepathfortheElectric
division&a9-yearglidepathfortheNaturalGasdivisionwastheboardsdirection.
HUCinstitutedthefirst2yearratetrackadjustmentsonthevariouscustomerclasses
backonOct1,2018&Oct12019.Attheboardsdirection,thesecond2yearratetrack
adjustmentsareattachedthatfollowthe6&9yearglidepathswhilekeepingHUC
revenueneutral.
Pleaseseeattachedaresolutionforapprovalthatwouldstarttheprocessofadjusting
theratestructuresforyears3&4.Oncethisresolutionisapproved,theratedesign
structures,communication,andameetingwiththecouncilwilltakeplace.
BOARD ACTION REQUESTED:
Approve2YearRateStructureChangeResolution
Fiscal Impact:
Included in current budget: Budget Change:
Yes
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
Hutchinson Utilities Commission
Electric Rate Design for 2020
Rate Design Summary
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ƓķĻƩwĻǝĻƓǒĻ /ŷğƓŭĻ ŅƩƚƒ
/ǒƭƷƚƒĻƩ /ƌğƭƭ/ǒƩƩĻƓƷ wğƷĻƭtƩƚƦƚƭĻķ wğƷĻƭ/ŷğƓŭĻ/ǒƩƩĻƓƷ
wĻƭźķĻƓƷźğƌυ ЎͲЏЏЏͲЌВЋυ ЎͲАЍЎͲЋЎЏυ АБͲБЏЍЊ͵ЌВі
{ƒğƌƌ DĻƓĻƩğƌ {ĻƩǝźĭĻυ ЊͲВЊЌͲЊЋБυ ЊͲВЋВͲЎЉАυ ЊЏͲЌАВЉ͵БЏі
\[ğƩŭĻ DĻƓĻƩğƌ {ĻƩǝźĭĻυ АͲАЌЎͲААЏυ АͲЏАЊͲЌЍЌυ ΛЏЍͲЍЌЍΜ ΏЉ͵БЌі
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TOTALS$ 25,485,736 $ 25,494,037 $ 8,3010.03%
Hutchinson Utilities Commission
Electric Rate Design for 2021
Rate Design Summary
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\[ğƩŭĻ DĻƓĻƩğƌ {ĻƩǝźĭĻυ АͲЏАЊͲЌЍЌυ АͲЏЉЏͲВЉАυ ΛЏЍͲЍЌЏΜ ΏЉ͵БЍі
\[ğƩŭĻ LƓķǒƭƷƩźğƌυ ЊЉͲЊЍАͲВЌЋυ ЊЉͲЊЋЎͲЍЋЏ υ ΛЋЋͲЎЉЏΜ ΏЉ͵ЋЋі
TOTALS$ 25,494,037 $ 25,503,421 $ 9,3840.04%
Hutchinson Utilities Commission
Natural Gas Rate Design for 2020
Rate Design Summary
tƩƚƆĻĭƷĻķtƩƚƆĻĭƷĻķ tƩƚƆĻĭƷĻķtƩƚƆĻĭƷĻķ
wĻǝĻƓǒĻƭ
ƓķĻƩwĻǝĻƓǒĻƭ
ƓķĻƩwĻǝĻƓǒĻ /ŷğƓŭĻ ŅƩƚƒ
/ǒƭƷƚƒĻƩ /ƌğƭƭ/ǒƩƩĻƓƷ wğƷĻƭtƩƚƦƚƭĻķ wğƷĻƭ/ŷğƓŭĻ/ǒƩƩĻƓƷ
wĻƭźķĻƓƷźğƌυ ЌͲБАЉͲЎЍЉυ ЌͲБЍЋͲЉЊЌυ ΛЋБͲЎЋАΜ ΏЉ͵АЍі
/ƚƒƒĻƩĭźğƌυ ЋͲВЊЋͲЋВЍυ ЋͲБАЏͲЍБЉυ ΛЌЎͲБЊЍΜ ΏЊ͵ЋЌі
LƓķǒƭƷƩźğƌυ ЍЉЏͲЉЍБυ ЌВЊͲАЉЉυ ΛЊЍͲЌЍБΜ ΏЌ͵ЎЌі
/ƚƓƷƩğĭƷĻķ LƓķǒƭƷƩźğƌ ϔЊυ ЌЋБͲЌЍЎυ ЌЌАͲВЉЋυ ВͲЎЎАЋ͵ВЊі
/ƚƓƷƩğĭƷĻķ LƓķǒƭƷƩźğƌ ϔЋυ ЋͲЍВБͲЊЎАυ ЋͲЎБЏͲББЋυ ББͲАЋЍЌ͵ЎЎі
TOTALS$ 10,015,385 $ 10,034,977 $ 19,5930.20%
Hutchinson Utilities Commission
Natural Gas Rate Design for 2021
Rate Design Summary
tƩƚƆĻĭƷĻķtƩƚƆĻĭƷĻķ tƩƚƆĻĭƷĻķtƩƚƆĻĭƷĻķ
wĻǝĻƓǒĻƭ
ƓķĻƩwĻǝĻƓǒĻƭ
ƓķĻƩwĻǝĻƓǒĻ /ŷğƓŭĻ ŅƩƚƒ
/ǒƭƷƚƒĻƩ /ƌğƭƭ/ǒƩƩĻƓƷ wğƷĻƭtƩƚƦƚƭĻķ wğƷĻƭ/ŷğƓŭĻ/ǒƩƩĻƓƷ
wĻƭźķĻƓƷźğƌυ ЌͲБЍЋͲЉЊЌ͵ЍЉυ ЌͲБЊЌͲАБЎ͵ЉЋυ ΛЋБͲЋЋБΜ ΏЉ͵АЌі
/ƚƒƒĻƩĭźğƌ ЋͲБАЏͲЍБЉ͵ЊЎ ЋͲБЍЉͲЏЏЏ͵ЋА υ ΛЌЎͲБЊЍΜ ΏЊ͵ЋЎі
LƓķǒƭƷƩźğƌ ЌВЊͲАЉЉ͵ЉЊ ЌААͲЉЎЊ͵ЎЊυ ΛЊЍͲЏЍВΜ ΏЌ͵АЍі
/ƚƓƷƩğĭƷĻķ LƓķǒƭƷƩźğƌ ϔЊ ЌЌАͲВЉЋ͵ЌВ ЌЌАͲВЉЋ͵ЌВυ ΏЉ͵ЉЉі
/ƚƓƷƩğĭƷĻķ LƓķǒƭƷƩźğƌ ϔЋ ЋͲЎБЏͲББЊ͵ЎЉ ЋͲЎБЏͲББЊ͵ЎЉ υ ΏЉ͵ЉЉі
TOTALS$ 10,034,977.45$ 9,956,286.69$ (78,690.76)-0.79%
Resolution No. 20-01____
A RESOLUTION CHANGING THE HUTCHINSON UTILITIES COMMISSION
RATE STRUCTURE FOR 2020 & 2021 FOR ELECTRIC AND NATURAL GAS DIVISIONS
Be It Resolved by the Hutchinson Utilities Commission:
That the current Electric and Natural Gas Rates paid by customers of the Hutchinson Utilities
Commission be changed as follows:
Electric Division Table-
Current 2020 2021
Residential
Monthly Customer Charge $ 11.70 $ 14.30 $ 16.90
Energy Charge (per KWH) $ 0.08290 $ 0.08070 $ 0.07852
Small General
Monthly Customer Charge $ 15.80 $ 18.70 $ 21.60
Energy Charge
Block 1 (0-2000 KWH) $ 0.09052 $ 0.09023 $ 0.08994
Block 2 (Excess) $ 0.08314 $ 0.08196 $ 0.08078
Large General
Monthly Customer Charge $ 53.80 $ 80.70 $ 107.60
Energy Charge (per KWH) $ 0.06637 $ 0.06210 $ 0.05783
Demand Charge (per KW) $ 8.00 $ 9.00 $ 10.00
Large Industrial
Monthly Customer Charge $ 150.40 $ 225.60 $ 300.80
Energy Charge (per KWH) $ 0.05680 $ 0.05477 $ 0.05274
Demand Charge (per KW) $ 9.00 $ 10.00 $ 11.00
Natural Gas Table-
Current 2020 2021
Residential
Monthly Customer Charge $ 11.30 $ 13.70 $ 16.10
Gas Commodity Charge ($/MCF) $ 8.2447 $ 7.8240 $ 7.4040
Commercial
Monthly Customer Charge $ 48.10 $ 56.40 $ 64.70
Gas Commodity Charge ($/MCF) $ 8.5282 $ 8.2482 $ 7.9682
Large Industrial
Monthly Customer Charge $ 145.00 $ 215.00 $ 285.00
Gas Commodity Charge ($/MCF) $ 8.0390 $ 7.7950 $ 7.5450
Demand Charge (Max Daily MCF per month) $ 9.0000 $ 8.5000 $ 8.0000
AND BE IT FURTHER RESOLVED, that the General Manager of the Hutchinson Utilities Commission,
Jeremy J Carter, shall provide notice of these rate changes to the City Council of the City of Hutchinson.
Adopted by the Hutchinson Utilities Commission this _______________________ day of
____________________, 2020
Hutchinson Utilities Commission
__________________________________
Don Martinez, President
Attest:
_________________________________
Robert Wendorff, Secretary
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
SaleofCapacitytoNextEraEnergyMarketing
Presenter:Agenda Item Type:
J.Carter
NewBusiness
Time Requested (Minutes):
10
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
HUChasagreedtotermswithNextEraEnergyMarketingforthesaleof21MWofZonal
ResourceCreditsinPlanningYears2025-2030toNextEraEnergyMarketing,LLC.
Agreementterms:$3,000perMW-monthx21MW=$63,000permonth
BOARD ACTION REQUESTED:
ApprovecapacitysaleagreementwithNextEraEnergyMarketing,LLC.
Fiscal Impact:
$756,000/yr
Included in current budget: Budget Change:
No
No
PROJECT SECTION:
Total Project Cost:
Remaining Cost:
MASTER POWER PURCHASE AND SALE AGREEMENT
CONFIRMATION LETTER
This confirmation letter Confirmationshall confirm the Transaction
agreed to on August __, 2020 Trade DateBuyer
NEM) and Hutchinson Utilities Commission Seller HUC (Party
collectively, Partiesregarding the sale/purchase of the Product under the terms and
conditions set forth herein.
The terms and conditions contained in the Master Power Purchase and Sale Agreement,
Master Agreement
by the Attachment hereto, are hereby incorporated by reference into this Confirmation, and this
Confirmation shall be governed by and subject to the terms and conditions of such Master
Agreement as so supplemented and amended. Any inconsistencies between the terms of the Master
Agreement and the terms of this Confirmation shall be resolved in favor of this Confirmation solely
for purposes of this Transaction. All capitalized terms not defined herein shall have the meanings
ascribed to them in the Master Agreement.
The terms of this Transaction are as follows:
Seller: HUC
Buyer: NEM
Product: ZRCs
ZRCs shall be sourced from a capacity resource located in Local Resource
Zone 1, as defined in the MISO Documents.
For the avoidance of doubt, one ZRC shall represent one megawatt
MWCapacity
Documents.
MISO Documents
MISO
ASM Tariff
as may be amended from time to time; and (ii) the MISO Business Practice
Manuals, as the same may be amended from time to time. In the event of
any inconsistency in the MISO Documents, the ASM Tariff shall prevail.
Transaction
Contingency: The effectiveness of this Transaction is contingent delivery of
written notice to HUC that NEM has consummated its supporting
transaction by \[5:00 p.m. Eastern Prevailing Time on September 30,
2020\], and Transaction
Effectiveness NoticeTransaction Effectiveness Notice shall be
provided by facsimile to 320-587-4721 or by electronic mail to
dlang@ci.hutchinson.mn.us.
This Transaction shall be null and void and of no effect if a Transaction
Effectiveness Notice is not delivered to HUC as set forth above.
Term:
accordance with the Transaction Contingency section above, June 1, 2025
through and including May 31, 2030 (each June-May period, a Planning
Year
Contract Quantity
(MW per Month): 21 MW (ZRCs)
Contract
Price ($/kW-Month): $3.00
Special Conditions:
1. Delivery and Receipt. Seller shall electronically deliver or cause to be delivered the
MECT
transaction(s) submitted by Seller in the MECT. Seller shall electronically deliver or cause to be
delivered to Buyer the Contract Quantity for all months in the applicable Planning Year
Annual Product at least ten (10) Business Days prior to the date on which the Planning
Resource Auction (as defined in the MISO Documents) offer window is closed for the Planning
Transfer Deadline
2. Payment Terms. With respect to each Planning Year in the Term, Seller shall invoice
Buyer, and Buyer shall tender payment, on a monthly basis, commencing upon delivery of the Total
Annual Product Quantity for such Planning Year. The monthly payment amount shall equal the
Contract Quantity times the Contract Price times 1000. Payment timing shall be in accordance with
Section 6.2 of the Master Agreement.
3. Failure to Deliver and/or Receive. In the event that Seller fails to deliver all or a portion
of the Total Annual Product Quantity for the applicable Planning Year, or Buyer fails to receive all
or portion of the Total Annual Product Quantity for the applicable Planning Year, by the Transfer
Annual Deficient Capacity
following payment shall apply with respect to such Annual Non-Performance
Payment
\[The Contract Price minus the Replacement Price\] times 1000 times
the Annual Deficient Capacity.
Replacement Price
Planning Year, the Local Resource Zone 1 Auction Clearing Price,
stated in $/kW-Month; or, if Seller/Buyer is unable to sell/purchase
Capacity to replace the Deficient Capacity at the Local Resource Zone
1 Auction Clearing Price, (ii) the price, stated in $/kW-Month, that
Seller/Buyer, acting in a commercially reasonable manner, is able to
ascertain from other bona fide third-party offers to buy/sell Local
Resource Zone 1 ZRCs in an amount equal to the Deficient Capacity.
Notwithstanding any other provision herein, neither Party shall be
required to enter into a replacement transaction(s) in order to
determine Replacement Price.
2
If the Non-Performance Payment is positive, Buyer shall pay Seller the Non-Performance Payment.
If the Non-Performance Payment is negative, Seller shall pay Buyer the absolute value of the Non-
Performance Payment.
4. Change in Applicable Law. If, after the Trade Date, there occurs a change in the MISO
Documents or their application, or there otherwise occurs a change in applicable law or regulation
Change in Law
otherwise has a material adverse effect on, a material right or obligation of a Party, then the Parties
shall negotiate in good faith in an attempt to amend this Confirmation to accommodate such Change
in Law. Any such amendment shall reflect, as closely as possible, the intent and substance of the
economic bargain reached by the Parties prior to such change.
5. Limitation of Remedies. The Parties acknowledge and agree that the remedies set forth
herein regarding failures to deliver and receive shall supersede and replace the remedies set forth
in the Master Agreement with respect to this Transaction only.
6. Mitigation. Each Party covenants that it will use commercially reasonable efforts to
-performance
of this Confirmation; provided, however, that neither Party shall be required to utilize or change its
utilization of its owned or controlled assets, including, without limitation, contractual assets, or
market positions to minimize or mitigate any damages arising out of or related to this Confirmation
if doing so would be to the detriment of such Party.
Signatures follow.
3
Hutchinson Utilities Commission NextEra Energy Marketing, LLC
By: ____________________________ By: _____________________________
Name: __________________________ Title: ___________________________
Title: ___________________________ Phone No: ________________________
Date: ___________________________ Fax: ____________________________
By: ____________________________
Name: __________________________
Title: ___________________________
Date: ___________________________
4
ATTACHMENT TO CONFIRMATION
A. Contact Information:
Name: NextEra Energy Marketing, LLC Name: Hutchinson Utilities Commission Seller or
Buyer Party A) Party B)
All Notices: All Notices:
Street: 700 Universe Blvd. Street: 225 Michigan St. SE
City/State: Juno Beach, FL Zip: 33408 City/State: Hutchinson, MN ZIP: 55350
Attn: Contracts/Legal Department Attn: HUC General Manager
Phone: n/a Phone: (320) 587-4746
Facsimile: (561) 625-7504 Facsimile: (320) 587-4721
Duns: NextEra Energy Marketing, LLC: 05-448-Email: jcarter@ci.hutchinson.mn.us
1341 Duns: 154439301
Federal Tax ID Number: 59-2576416 Federal Tax ID Number: 41-6005251
Invoices: Invoices:
Attn: Manager, NextEra Energy Marketing, LLC Attn: HUC Business Manager
Accounting Phone: (320) 234-0512
Phone: (561) 304-5820 Facsimile: (320) 587-4721
Facsimile: (561) 625-7651 jmartig@ci.hutchinson.mn.us
michael.coller@nee.com; Power-
Settlements.SharedMailbox@nee.com
Confirmations: Confirmations:
Attn: Confirmation Desk Attn: HUC System Control
Phone: (561) 691-2488 Phone: (320) 234-0541
Facsimile: (561) 625-7517 Facsimile: (320) 234-7743
Email: NextEra.Confirmations@ E-mail: control@ci.hutchinson.mn.us;
NextEraEnergy.com lweerts@ci.hutchinson.mn.us
Scheduling: Scheduling:
Attn: Scheduling Desk Attn: HUC System Control
Phone: (561) 625-7100 Phone: (320) 234-0541
Facsimile: (561) 625-7604 Facsimile: (320) 234-7743
E-mail: control@ci.hutchinson.mn.us;
lweerts@ci.hutchinson.mn.us
Payments: Payments:
Attn: Manager, NextEra Energy Marketing, LLC Attn: HUC Business Manager
Accounting Phone: (320) 234-0512
Phone: (561) 304-5820 Facsimile: (320) 587-4721
Facsimile: (561) 625-7663
5
Wire Transfer: Wire Transfer:
Pay: Bank of America Pay: Citizens Bank & Trust Co.
For the Account of: NextEra Energy Marketing, Account Name: Hutchinson Utilities Commission
LLC Account No. 000086
Account No.: 3751227650 ABA/Routing No.: 091-901-862
Fed. ABA No.: 026-00-9593
ACH Payment:
ACH Transfer: Pay: Citizens Bank & Trust Co.
Pay: Bank of America Account Name: Hutchinson Utilities Commission
For the Account of: NextEra Energy Marketing, Account No.: 000086
LLC ABA/Routing No.: 091-901-862
Account No.: 3751227650
Fed. ABA No.: 111-00-0012
Credit and Collections: Credit and Collections:
Attn: Credit Manager Attn: HUC Business Manager
Phone: (561) 304-6178 Phone: (320) 234-0512
Facsimile: n/a Facsimile: (320) 587-4721
Email: tradecredit@nexteraenergy.com Email: jmartig@ci.hutchinson.mn.us
With additional Notices of an Event of Default or With additional Notices of an Event of Default or
Potential Event of Default to: Potential Event of Default to:
Attn: Contracts/Legal Department Attn: HUC General Manager
Facsimile: (561) 625-7504 Phone: (320) 587-4746
Facsimile: (320) 587-4721
E-Mail: jcarter@ci.hutchinson.mn.us
B. Cover Sheet Elections
Article Two
Transaction Terms and Conditions Optional provision in Section 2.4. If not checked, inapplicable.
Article Four
Remedies for Failure
Accelerated Payment of Damages. If not checked, inapplicable.
to Deliver or Receive
Article Five
Events of Default; Remedies
5.6 Closeout Setoff
Option A (Applicable if no other selection is made.)
Option B (as amended pursuant to Section C)
Option C (No Setoff)
8.1 Party A Credit Protection:
Article 8
Credit and Collateral Requirements (a) Financial Information:
Option A
(b) Credit Assurances:
6
Applicable
(c) Collateral Threshold:
Not Applicable
(d) Downgrade Event:
Not Applicable
(e) Guarantor for Party B: N/A
8.2 Party B Credit Protection:
(a) Financial Information:
Option B, NextEra Energy, Inc.
(b) Credit Assurances:
Applicable
(c) Collateral Threshold:
Not Applicable
(d) Downgrade Event:
Not Applicable
(e) Guarantor for Party A: N/A
Article 10
Confidentiality Confidentiality Applicable If not checked, inapplicable.
C. Special Provisions
1. REPRESENTATIONS AND WARRANTIES. Each Party represents and warrants to the other
as such term is defined in
the Commodity Exchange Act, as amended (7 U.S.C.A. Section 1a(18); (B) the other party to this Transaction
(i) is not acting as a fiduciary or financial, investment or commodity trading advisor for it, and (ii) has not
given to it (directly or indirectly through any other person) any assurance, guaranty or representation
whatsoever as to the merits (either legal, regulatory, tax, financial, accounting or otherwise) of this
Transaction or the expected performance or result of this Transaction; and (D) in connection with the
negotiation and execution of this Transaction, (i) it is acting as a principal (and not as an agent or in any other
capacity, fiduciary or otherwise), (ii) it is not relying upon any advice, counsel or representations (whether
written or oral) of the other party other than the representations expressly set forth in this Transaction, (iii) it
has made and will make its own decisions regarding the entering into of this Transaction based upon its own
judgment and upon the advice from such professional advisors as it deemed, or will deem, necessary to
consult, (iv) all of its decisions regarding this Transaction have been the result of arm's length negotiations
between the Parties, and (v) it has a full understanding of all the terms, conditions and risks (economic and
7
otherwise) of this Transaction, and it is capable of assuming and willing to assume (financially and otherwise)
those risks.
In addition, each Party represents and warrants to the other Party as of the Trade Date that: (A) it
has obtained all governmental authorizations, regulatory authorizations, licenses, registrations, certifications,
permits and qualifications necessary for it to legally perform its obligations under this Confirmation; (B) the
execution, delivery and performance of this Transaction and Confirmation are within its powers, have been
duly authorized by all necessary action and do not violate any of the terms and conditions in its governing
documents, any contracts to which it is a party or any law, rule, regulation, order or the like applicable to it;
and (C) this Confirmation constitutes its legally valid and binding obligation enforceable against it in
accordance with its terms.
2. NETTING OF PAYMENTS
-off against and
deduct from any amounts or owing to X by Y under this Confirmation or any other agreement on the same
date.
3. SETOFF. Upon the designation or deemed designation of an Early Termination Date, in addition
to and not in limitation of any other right or remedy under applicable law, the Party ("X") other than the
Defaulting Party, may without prior notice to any person set off any amounts or obligations (whether or not
arising under this Agreement) owed by the Defaulting Party or Affected Party (in either case "Y") to X or
any Affiliate of X against any amounts or obligations (whether or not arising under this Agreement) owed by
X or any Affiliate of X to Y and, for this purpose, may convert one currency into another at a market rate
determined reasonably and in good faith by X. If any sum or obligation is unascertained, X may in good faith
estimate that sum or obligation and set-off in respect of that estimate, subject to X or Y, as the case may be,
accounting to the other Party when such sum or obligation is ascertained. This Section 3 shall be not be
construed to create a charge or other security interest.
4. CONFIDENTIALITY. The terms of this Transaction and all documents relating to this
Confirmation, and any information made available by one Party to the other Party with respect to this
Transaction is confidential and shall not be disclosed to any third party (nor shall any public announcement
be made by either Party), except for such information (1) as may become generally available to the public,
(2) as may be required or appropriate in response to any summons, subpoena, or otherwise in connection
with any litigation or to comply with any applicable law, order, regulation, ruling or accounting disclosure
rule or standard (subject to the succeeding paragraph), (3) as may be obtained from a non-confidential source
that disclosed such information in a manner that did not violate its obligations to the non-disclosing Party, in
making such disclosure, or (4) as may be furnished to the disclosing Party's Affiliates, and to each of such
person's auditors, attorneys, advisors or lenders which are required to keep the information that is disclosed
in confidence.
NEM acknowledges that HUC is a public entity and is required to comply with the provisions of
any applicable open meeting and public records disclosure laws regarding disclosure of the pricing terms and
other terms of this Confirmation; provided, however, HUC shall use good faith efforts to ensure that all
confidential information is kept confidential to the extent possible in accordance with such laws and any
exemptions to disclosure therein.
5. GOVERNING LAW. This Confirmation (i) shall be governed by, interpreted and construed in
accordance with the laws of the State of New York (without regard to any otherwise applicable principles of
conflicts of laws, other than Section 5-1401 of the New York General Obligations Law, which provision will
apply); and (ii) shall be binding upon and inure to the benefit of the parties and their respective successors
and (effective upon scheduled delivery day) permitted assigns.
6. LIMITATION OF LIABILITY. NO PARTY SHALL BE REQUIRED TO PAY SPECIAL,
EXEMPLARY, PUNITIVE, INCIDENTAL, CONSEQUENTIAL OR INDIRECT DAMAGES
(WHETHER OR NOT ARISING FROM A PARTY'S NEGLIGENCE) TO THE OTHER PARTY, EXCEPT
TO THE EXTENT THAT THE PAYMENTS REQUIRED TO BE MADE PURSUANT TO THE TERMS
8
OF THE TRANSACTION ARE DEEMED TO BE SUCH DAMAGES. IF AND TO THE EXTENT ANY
PAYMENT MADE PURSUANT TO THE TRANSACTION IS DEEMED TO CONSTITUTE
LIQUIDATED DAMAGES, THE PARTIES ACKNOWLEDGE AND AGREE THAT DAMAGES ARE
DIFFICULT OR IMPOSSIBLE TO DETERMINE AND THAT SUCH PAYMENT CONSTITUTES A
REASONABLE APPROXIMATION OF THE AMOUNT OF SUCH DAMAGES, AND NOT A
PENALTY.
9
HUTCHINSON UTILITIES COMMISSION
Board Action Form
Agenda Item:
RateScheduleforElectricVehicleChargers
Presenter:Agenda Item Type:
Jeremy
NewBusiness
Time Requested (Minutes):
10
Attachments:
Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
purchasedanElectricVehicleDCFastChargerfromChargepointandwillbe
installingitontheNorthsideof2ndAveNWintheparkingstallsforthepark.
workedwithCitystafftofindalocationwithpublicparkingthatwouldbeclose
toexistingelectricinfrastructurealongwitheasyaccessforcustomers.Atypical
EVusingaDCFastChargerwillfullychargein30minutesusing70kwhofenergy
andwillhavearangeof250miles.
alsobeeninvolvedin"PAVE"(poweringaheadwithVehicleElectrification)put
togetherbytheCERTs(CleanEnergyResourceTeam).get
togetherwithotherMunicipalsandCooperativestodiscussEVchargerpurchase
processes,installationlocations,andenergyratedesign.
recommendusingexistingSmallGeneralRate(.09052/kwh)asEV
chargerrate.
ttachedElectric-Gasvehiclecostcomarisonusingtodaysgasolinepricesand
currentSmallGeneralrate.
BOARD ACTION REQUESTED:
ApproveSmallGeneralServiceCode30astheElectricVehiclechargerenergyrate
Fiscal Impact:
NA
Included in current budget: Budget Change:
PROJECT SECTION:
Total Project Cost:
Remaining Cost: