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02-23-2022 HUCCPHUTCHINSON UTILITIES COMMISSION AGENDA REGULAR MEETING February 23, 2022 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. Section 2 of Exempt Handbook ii. Section 2 of Non -Exempt Handbook b. Approve Changes i. After Hours Reconnection Policy 7. UNFINISHED BUSINESS 8. NEW BUSINESS a. Review 2021 Annual Distributed Generation b. Approve Cogeneration and Small Power Production Annual Tariff Filing C. Approve 3M's Natural Gas Transportation and Daily Swing Supply Agreement d. Approve Req#009022 — Air Stack Emission Testing Plant 1 & 2 e. Approve Req#008997 — Unit 1 LM6000 Fuel Nozzles f. Rescind Advertisement for Bid: In -Line Inspection of 12" Lateral Natural Gas Pipeline g. Approve Req#008920 — City of Hutchinson LED Street Light Conversion 9. ADJOURN MINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, January 26, 2022 Call to order — 3:00 p.m. Vice President Anthony Hanson called the meeting to order. Members present: Vice President Anthony Hanson; Commissioner Robert Wendorff; Commissioner Kathy Silvernale; GM Jeremy Carter; Attorney Marc Sebora Absent: President Matt Cheney; Secretary Don Martinez Conflict of Interest Commissioner Hanson declared conflict of interest in voting on agenda item 2f - Designate Depositories for Utility Funds, as he is an Officer and employee of Citizens Bank & Trust. Commissioner Hanson will be abstaining from Agenda item 2f. 2. Commission Reorganization Vice President Hanson called for the annual Commission reorganization. a. A motion made by Commissioner Wendorff, second by Commissioner Silvernale to re-elect Matt Cheney to the position of President. Motion carried unanimously. b. A motion made by Commissioner Wendorff, second by Commissioner Silvernale to re-elect Anthony Hanson to the position of Vice President. Motion carried unanimously. c. A motion made by Commissioner Wendorff, second by Commissioner Silvernale to re-elect Don Martinez to the position of Secretary. Motion carried unanimously. d. A motion made by Commissioner Silvernale, second by Commissioner Wendorff to appoint Marc Sebora as legal counsel. Motion carried unanimously. e. A motion made by Commissioner Silvernale, second by Commissioner Wendorff to appoint Angie Radke as recording secretary. Motion carried unanimously. f. A motion made by Commissioner Wendorff, second by Commissioner Silvernale to designate Citizens Bank & Trust, Wells Fargo Bank, Wells Fargo Advisors, Home State Bank, Morgan Stanley and Cetera Investment Services as depositories for utility funds. Vice President Hanson abstained. Mr. Sebora asked all in favor, Motion carried unanimously. 3. Approve Consent Agenda a. Approve Minutes b. Ratify Payment of Bills Motion by Commissioner Wendorff, second by Commissioner Silvernale to approve the Consent Agenda. Motion carried unanimously. 4. Approve Financial Statements 61 6 Mr. Martig presented the Financial Statements. Cash decreased in large part due to the solar array and transformer at Plant 2 projects as well as covering $1.2M of the February commodity spike. Electric Division Net Loss increased by $3.6M with decreased revenues due to MRES refund and transformer insurance proceeds in 2020 along with December 2020 Depreciation due to software change. YTD budget to actual variance for depreciation was due to budgeting for 6 months of depreciation on the new engines but actually depreciating them over the full 12 months. Mr. Martig reviewed GASB entries that will need to be made coming up. GM Carter reviewed budget to actual for the year. Consumption came in close to what was budgeted for Natural Gas and Electric Divisions; overall tracking well. Comparing the classes, All Electric came in lower due to this Fall being warmer than last Fall. Generator fuels were up due to much higher generation in 2021 which coincides with higher Sales for Resale. GM Carter reviewed generated MWH used for the Market and for HUC's hedging program. GM Carter spoke of the Natural Gas Customer Revenue and Purchased Gas in relation to the Polar Vortex in February. Target was to hit 37% of Gross Margin, in reality it was only 33%, Sept and October were soft months in consumption due to warmer weather. Motion by Commissioner Silvernale, second by Commissioner Wendorff to approve the financial statements. Motion carried unanimously. Open Forum Communication a. City Administrator —Matthew Jaunich — i. Welcomed Kathy Silvernale as new Commissioner ii. Accepted bids for street project West of the Rec Center iii. Nuvera will be doing a large fiber project this Summer '7=big0"017 Dan Lang, Engineering Services Manager — Nothing to report Dave Hunstad, Electric Transmission/Distribution Manager — 1. Reviewed Solar Array Graph, which shows production from last 2 months President Matt Cheney entered at 3:20p.m. iii. Mike Gabrielson, Production Manager — 1. Finished up last half of 2021 Emission documents for Plants 1 & 2 and have sent off to the State 2. Working on exhaust stack testing for Plants 1 & 2 iv. John Webster, Natural Gas Division Director — Nothing to report v. Jared Martig, Financial Manager- 1. Had to put a capital lease on the land of the Solar Array, which will be recorded as an Asset; As HUC pays the City, the book value will be decreased. 2. Next year new GASB on Leases will need to be implemented which will include printer and mailing machine. 2 3. Auditors are here this week c. Human Resources — Angie Radke i. Working on OSHA Logs that will be completed by end of month ii. Maintenance Mechanic 11 interviews to start next week iii. Please note Agenda item 9b-should state Requisition #009011 and not #009001 d. Legal — Marc Sebora — i. Welcomed new Commissioner Kathy Silvernale who was officially sworn in last Friday, Jan 21. e. General Manager — Jeremy Carter i. Business updates were sent out last week. ii. Federal level update was sent out yesterday. iii. Last Special meeting Commissioner Hanson inquired about providing a background on Engine Inventory, plan moving forward and what is looking to be retired; this information was just sent out, please review and feel free to follow-up with any questions. iv. MMUA Legislative Rally will be held virtually on Feb 8 & 9. Federal Rally is also coming up in Feb, currently is in person but may look to have virtual options. v. MMGA has a board meeting tomorrow to finalize prepaid deal and will look to go to market in next couple of days. Looking at having a Bond issuance not to exceed $850M, this will also be a 30-year prepaid Deal. 7. Policies a. Review Policies i. Section 1 of Exempt Handbook ii. Section 1 of Non -Exempt Handbook No changes recommended at this time. 8. Unfinished Business 9. New Business a. 3M Transformer LTC Repair Mr. Hunstad presented Approval of 3M LTC Repair. HUC preforms oil testing on substation transformers every 6 months, the last couple tests for 3M have shown some high gasing in the LTC. The Initial quote was $9K, however when CE Power was hired to perform the required maintenance it turned out to needing additional parts and labor. Attached are the labor and materials that was required. Motion by Commissioner Hanson, second by Commissioner Wendorff to Approve 3M LTC Repair PO 8955. Motion carried unanimously. 3 b. Approve Requisition #009011 — Plant #1 Substation RTU and Relays Mr. Lang presented Approval of Requisition #009011 — Plant #1 Substation RTU and Relays. Looking at replacing the existing 40-year old electro-mechanical relaying equipment at Plant 1 this year. DGR Engineering will be used to design the protection system scheme for the substation and feeders, specify materials, develop relay settings, and commission the relays. DGR Engineering will also design and specify the materials to replace the obsolete Ilex RTU and integrate with the new relaying equipment. Motion by Commissioner Hanson, second by Commissioner Silvernale to Approve Requisition #009011 — Plant #1 Substation RTU and Relays. Motion carried unanimously. c. Approve Advertisement for Bid: In -Line Inspection of 12" Lateral Natural Gas Pipeline Mr. Webster presented Approval of Advertisement for Bid: In -Line Inspection of 12" Lateral Natural Gas Pipeline. Due to the discovery of a high consequence area found in the Industrial Park this past year, HUC now needs to complete a baseline study within the year of the finding. A contractor will need to be hired to perform the inline pigging project. A motion by Commissioner Hanson, second by Commissioner Wendorff to Approve Advertisement for Bid: In -Line Inspection of 12" Lateral Natural Gas Pipeline. Motion carried unanimously. d. Approve Memorandum of Agreement Health Care Savings Plan Union contract (IBEW Local 949) dated January 1,2022 — December 31,2023 GM Carter presented Approval of Memorandum of Agreement Health Care Savings Plan Union Contract (IBEW Local 949) dated January 1,2022 - December 31, 2023. Back in December when the Board approved the Union Contract, this portion had not been officially approved by the State. Since that time, it has now been approved by the State and Staff is looking to have the Board take formal action and Approve the Memorandum. A motion by Commissioner Silvernale, second by Commissioner Wendorff to Approve Memorandum of Agreement Health Care Savings Plan Union Contract (IBEW Local 949) dated January 1,2022 — December 31,2023. Motion carried 12 unanimously. 10. Adjourn There being no further business, a motion by Commissioner Wendorff, second by Commissioner Silvernale to adjourn the meeting at 3:34p.m. Motion carried unanimously. ATTEST: Matt Cheney, President 5 Don Martinez, Secretary MINUTES Special Meeting — Hutchinson Utilities Commission Wednesday, January 21, 2022 Call to order — 11:30 a.m. President Matt Cheney called the meeting to order. Members present: President Matt Cheney; Vice President Anthony Hanson; Commissioner Robert Wendorff; Commissioner Kathy Silvernale; GM Jeremy Carter; Attorney Marc Sebora Absent: Secretary Don Martinez Others Present: Mayor Gary Forcier, John Webster, Angie Radke The purpose of the special meeting is to swear in the new Commissioner Kathy Silvernale and to amend the MMGA (Minnesota Municipal Gas Association) Agreement. Attorney Sebora swore in the newly appointed Commissioner, Kathy Silvernale. GM Carter presented the MMGA Amendment. The past year the Minnesota Legislature approved an amendment to Chapter 453A that allows a municipal gas agency to exercise the powers of a municipal power agency in a tax-exempt prepaid energy transaction. Minn. Stat. Section 453A.04, Subd. 21. The new authority will allow MMGA, for which HUC is a part of to enter into long-term prepaid gas contracts with public power systems that use gas to power generation units. The ability of MMGA to purchase and enter into long-term prepaid contracts at a discounted rate provides the ability of its members to save on natural gas pricing. The original Agency Agreement that established the Municipal Gas Agency in 2007 needs to be amended in order for MMGA to exercise this new authority. Discussion was held on the number of cities that were involved at the time compared to now and why some would choose to be involved or not. Motion by Commissioner Hanson, second by Commissioner Wendorff to Approve Resolution #22-01 Amending the Original MMGA Agreement. Motion carried unanimously. GM Carter will provide updates on where HUC Capacity is along with Fleet and look to set up a tour for late Spring. There being no further business, a motion by Commissioner Wendorff, second by Commissioner Hanson to adjourn the meeting at 11:52a.m. Motion carried unanimously. ATTEST: Matt Cheney, President Don Martinez, Secretary 02/17/2022 03:08 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK Payee DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM O1/22/2022 - 02/17/2022 Description Account Dept Page 1/17 Amount Fund: 1 ELECTRIC O1/24/2022 GEN 1008(E) ALERUS HEALTH INSURANCE 401-556- 03 177.00 O1/25/2022 GEN 1003(E) MISO Deferred Energy Cost - Miso 174-000- 00 14,555.20 Deferred Energy Cost - Miso 174-000- 00 391.51 HECK GEN 1003(E) TOTAL FOR FUND 1: 14,946.71 O1/26/2022 GEN 989(E)* ALERUS HEALTH INSURANCE 401-926- 08 391.50 02/01/2022 GEN 1004(E) MISO Deferred Energy Cost - Miso 174-000- 00 17,656.49 Deferred Energy Cost - Miso 174-000- 00 403.79 HECK GEN 1004(E) TOTAL FOR FUND 1: 18,060.28 02/01/2022 GEN 991(E)* ARGUS DENTAL DENTAL INSURANCE -COBRA 242-000- 00 327.36 DENTAL INSURANCE-80o ELEC 242-000- 00 3,222.16 HECK GEN 991(E) TOTAL FOR FUND 1: 3,549.52 02/02/2022 GEN 992(E)* CITIZENS BANK Office Supplies 401-921- 08 101.19 02/02/2022 GEN 993(E)* PAY MENTECH collection - Materials 401-903- 06 1,742.39 02/03/2022 GEN 75761 MN DEPARTMENT OF COMMERCE OVERPAYMENTS 142-000- 00 801.01 02/08/2022 GEN 1005(E) MISO Deferred Energy Cost - Miso 174-000- 00 408.44 02/08/2022 GEN 999(E)* INVOICE CLOUD collection - Materials 401-903- 06 2,095.63 02/09/2022 GEN 757634 ACE HARDWARE Sales Tax Receivable - Replace 186-000- 00 4.12 Sales Tax Receivable - Replace 186-000- 00 0.55 Sales Tax Receivable - Replace 186-000- 00 0.41 Supplies 401-550- 01 51.27 Accessory Plant - Materials 402-554- 01 59.99 Accessory Plant - Materials 402-554- 01 7.98 Accessory Plant - Materials 402-554- 01 5.98 02/17/2022 03:08 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM O1/22/2022 - 02/17/2022 Payee Description Account Dept Page 2/17 Amount Fund: 1 ELECTRIC HECK GEN 75763 TOTAL FOR FUND 1: 130.30 02/09/2022 GEN 75764* ALEXANDER CLINE DEP REFUND/APPLIED 235-000- 00 97.50 02/09/2022 GEN 75765 ALLIED ELECTRONICS INC Battery. 402-554- 01 479.84 Battery. 402-554- 01 90.00 HECK GEN 75765 TOTAL FOR FUND 1: 569.84 02/09/2022 GEN 75766* ANDREW OR SARAH MARESCH DEP REFUND/APPLIED 235-000- 00 78.00 02/09/2022 GEN 75767 ANIXTER INC 14ga SIS wire. 107-362- 00 406.71 14ga SIS wire. 107-362- 00 123.57 Sales Tax Receivable - New 186-000- 00 37.24 Sales Tax Receivable - New 186-000- 00 11.32 HECK GEN 75767 TOTAL FOR FUND 1: 578.84 02/09/2022 GEN 75768* ASHLEY SULLIVAN DEP REFUND/APPLIED 235-000- 00 84.50 02/09/2022 GEN 75769* BIRCHDALE FIRE & SAFETY GROUNDS - OUTSIDE SERVICES 401-935- 08 35.27 02/09/2022 GEN 75770*4 BORDER STATES ELECTRIC SUPPLY POLE, STANDARD FIBERGLASS BG WITH 154-000- 00 3, 487.65 FIXTURE, LED, ACORN, GRANVILLE III, 154-000- 00 6,318.70 Sales Tax Receivable - New 186-000- 00 239.78 Sales Tax Receivable - New 186-000- 00 434.41 Street Lighting - Materials 402-596- 02 493.62 HECK GEN 75770 TOTAL FOR FUND 1: 10,974.16 02/09/2022 GEN 75772* BS&A SOFTWARE IT ADMIN AND SUPPORT 401-921- 08 867.75 02/09/2022 GEN 75773 CARLY'S SHOE STORE Uniforms & Laundry 401-588- 02 212.49 Uniforms & Laundry 401-588- 02 229.49 Uniforms & Laundry 401-588- 02 212.49 HECK GEN 75773 TOTAL FOR FUND 1: 654.47 02/17/2022 03:08 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM O1/22/2022 - 02/17/2022 Payee Description Account Dept Page 3/17 Amount Fund: 1 ELECTRIC 02/09/2022 GEN 75774 CARPETS PLUS Cip- Commercial 401-916- 07 1,529.01 02/09/2022 GEN 75775 CE POWER 3M LTC Repair Labor and Materials 402-592- 02 33,240.00 02/09/2022 GEN 75777*4 CINTAS CORPORATION 4470 Uniforms & Laundry 401-550- 01 460.01 Uniforms & Laundry 401-550- 01 452.96 Uniforms & Laundry 401-550- 01 452.96 UNIFORMS & LAUNDRY 401-588- 02 295.32 UNIFORMS & LAUNDRY 401-588- 02 295.32 UNIFORMS & LAUNDRY 401-588- 02 295.32 HECK GEN 75777 TOTAL FOR FUND 1: 2,251.89 02/09/2022 GEN 75778*4 CITY OF HUTCHINSON VEHICLE/EQUIPMENT FUEL -POWER 401-550- 01 339.75 VEHICLES/EQUIPMENT FUEL-ELEC 401-588- 02 1,369. 96 Vehicles - Material 401-921- 08 25.00 IT ADMIN AND SUPPORT 750 401-921- 08 19,621.31 VEHICLES/EQUIPMENT FUEL-ADMIN 55/45 401-935- 08 80.84 HECK GEN 75778 TOTAL FOR FUND 1: 21,436.86 02/09/2022 GEN 75779* CLAYTON SCHILLING DEP REFUND/APPLIED 235-000- 00 58.50 02/09/2022 GEN 75780* CODY OR JAYDENE FORESTER DEP REFUND/APPLIED 235-000- 00 195.00 02/09/2022 GEN 75781 COUNTY OF MCLEOD Street Lighting - Materials 402-596- 02 82.50 02/09/2022 GEN 75782* CROW RIVER MUTUAL INS CO DEP REFUND/APPLIED 235-000- 00 481.00 02/09/2022 GEN 75783* DANA MELVIN OR JAMES GOHEEN DEP REFUND/APPLIED 235-000- 00 58.50 02/09/2022 GEN 75784 DARRIN BROWN OVERPAYMENTS 142-000- 00 54.58 02/09/2022 GEN 757854 DELMAR COMPANY FLEX GASKET,2" 6004 154-000- 00 25.02 FREIGHT 401-588- 02 19.46 HECK GEN 75785 TOTAL FOR FUND 1: 44.48 02/17/2022 03:08 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM O1/22/2022 - 02/17/2022 Payee Description Account Dept Page 4/17 Amount Fund: 1 ELECTRIC 02/09/2022 GEN 75786* DMV VEHICLES - MATERIAL 401-935- 08 539.96 02/09/2022 GEN 75787*4 EMBROIDERY PLUS Uniforms & Laundry 401-550- 01 58.78 Uniforms & Laundry 401-588- 02 29.39 HECK GEN 75787 TOTAL FOR FUND 1: 88.17 02/09/2022 GEN 75788* EVERS, MATT Cip - Residential 401-916- 07 50.00 02/09/2022 GEN 75789* FAST FLYER PROPERTIES LLC DEP REFUND/APPLIED 235-000- 00 97.50 02/09/2022 GEN 757904 FASTENAL COMPANY Sales Tax Receivable - Replace 186-000- 00 1.56 Accessory Plant - Materials 402-554- 01 22.76 HECK GEN 75790 TOTAL FOR FUND 1: 24.32 02/09/2022 GEN 75791* FIRST CHOICE FOOD & BEVERAGE BREAKROOM/RECOGNITION BANQUET 401-926- 08 114.00 BREAKROOM/RECOGNITION BANQUET 401-926- 08 171.00 HECK GEN 75791 TOTAL FOR FUND 1: 285.00 02/09/2022 GEN 75792*4 GOPHER STATE ONE -CALL INC Line - Materials 401-581- 02 25.00 02/09/2022 GEN 75794* HAGER JEWELRY INC Office Supplies 401-921- 08 17.63 02/09/2022 GEN 75795* HANNAH HART DEP REFUND/APPLIED 235-000- 00 48.75 02/09/2022 GEN 75796*4 HILLYARD/HUTCHINSON Supplies 401-550- 01 273.66 Grounds - Materials 401-935- 08 180.63 Grounds - Materials 401-935- 08 59.79 HECK GEN 75796 TOTAL FOR FUND 1: 514.08 02/09/2022 GEN 75797* HUDSON DARNELL DEP REFUND/APPLIED 235-000- 00 227.50 02/17/2022 03:08 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM O1/22/2022 - 02/17/2022 Payee Description Account Dept Page 5/17 Amount Fund: 1 ELECTRIC 02/09/2022 GEN 75798* HUTCHFIELD SERVICES INC Grounds - Outside Services 401-935- 08 1,112.73 02/09/2022 GEN 75799*4 HUTCHINSON WHOLESALE SUPPLY CO Sales Tax Receivable - Replace 186-000- 00 0.41 Generator 47 Material 402-554- 01 5.99 Other Equipment - Materials 402-598- 02 19.94 Other Equipment - Materials 402-598- 02 19.13 HECK GEN 75799 TOTAL FOR FUND 1: 45.47 02/09/2022 GEN 75801*4 INNOVATIVE OFFICE SOLUTIONS Office Furniture & Equipment 101-391- 00 64.73 Office Supplies 401-921- 08 262.09 HECK GEN 75801 TOTAL FOR FUND 1: 326.82 02/09/2022 GEN 758024 INTEGRATED POWER SERVICES Sales Tax Receivable - Replace 186-000- 00 75.09 R824 Marathon 5.5 Electric Motor 402-554- 01 1,092.23 HECK GEN 75802 TOTAL FOR FUND 1: 1,167.32 02/09/2022 GEN 75803 IRBY TOOL & SAFETY Uniforms & Laundry 401-588- 02 130.96 02/09/2022 GEN 75804* JACOB POPE DEP REFUND/APPLIED 235-000- 00 52.00 02/09/2022 GEN 758054 JASPER ENGINEERING & EQUIPMENT Sales Tax Receivable - Replace 186-000- 00 39.98 Accessory Plant - Materials 402-554- 01 9.38 QTHA-2FSF-QD RALSTON FITTING 402-554- 01 136.02 QTHA-IMSO-QD RALSTON FITTING 402-554- 01 130.00 QTHA-2FSO RALSTON FITTING 402-554- 01 149.73 QTHA-HHSU 402-554- 01 156.40 HECK GEN 75805 TOTAL FOR FUND 1: 621.51 02/09/2022 GEN 75806 JEBRIL IBRAHIM OR JOMAA BAKHIT OVERPAYMENTS 142-000- 00 14. 82 02/09/2022 GEN 75807 JEFF NYGAARD OR RENEE FARENBAUGH OVERPAYMENTS 142-000- 00 203.08 02/09/2022 GEN 75809* JLR GARAGE DOOR SERVICE INC Grounds - Materials 401-935- 08 75.00 02/17/2022 03:08 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 01/22/2022 - 02/17/2022 Payee Description Account Dept Page 6/17 Amount Fund: 1 ELECTRIC 02/09/2022 GEN 75810* JOHN DIETEL DEP REFUND/APPLIED 235-000- 00 159.25 02/09/2022 GEN 75811* JOHNSON, ERIC Cip - Residential 401-916- 07 25.00 02/09/2022 GEN 75812* JORDAN SCHILTZ DEP REFUND/APPLIED 235-000- 00 97.50 02/09/2022 GEN 75813* KAYLA KUEHN DEP REFUND/APPLIED 235-000- 00 156.00 02/09/2022 GEN 75815* KIMBERLY HANSON DEP REFUND/APPLIED 235-000- 00 65.00 02/09/2022 GEN 75817* LANCE KURTZ DEP REFUND/APPLIED 235-000- 00 39.00 02/09/2022 GEN 75818* LANGE, BRETT Cip - Residential 401-916- 07 200.00 02/09/2022 GEN 75820* LLOYD TULLIS DEP REFUND/APPLIED 235-000- 00 91.00 02/09/2022 GEN 758214 LUBRICATION TECHNOLOGIES INC OIL, MOBIL PEGASUS 1005 154-000- 00 15, 194.36 Materials 401-588- 02 0.21 HECK GEN 75821 TOTAL FOR FUND 1: 15,194.57 02/09/2022 GEN 75822* MACKEDANZ, TONY Cip - Residential 401-916- 07 1,250.00 02/09/2022 GEN 75823* MARCO TECHNOLOGIES, LLC OFFICE SUPPLIES 401-921- 08 521.68 02/09/2022 GEN 75824* MATHENY, JEANNETTE Cip - Residential 401-916- 07 200.00 02/09/2022 GEN 75825*4 MATHESON TRI-GAS INC Sales Tax Receivable - Replace 186-000- 00 3.98 Generator 41 Material 402-554- 01 57.91 CHECK GEN 75825 TOTAL FOR FUND 1: 61.89 02/09/2022 GEN 758264 MCC ENERGY SOLUTIONS, LLC I AM MANAGEMENT FEES 401-555- 02 3, 900.00 02/17/2022 03:08 PM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES User: JMartig CHECK DATE FROM O1/22/2022 - 02/17/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Fund: 1 ELECTRIC IAM USAGE FEES 401-556- 03 HECK GEN 75826 TOTAL FOR FUND 1: 02/09/2022 GEN 758274 MECHANICAL SYSTEMS INC CARBON CARTRIDGE KOBY 79-PMC-2CAR 154-000- 00 PURAFIL CARTRIDGE BODY 79-PMC-2PUR 154-000- 00 SODASORB CARTRIDGE BODY 79-PMC-2SOD 154-000- 00 Sales Tax Receivable - Replace 186-000- 00 FREIGHT 401-588- 02 HECK GEN 75827 TOTAL FOR FUND 1: 02/09/2022 GEN 75828*4 MN MUNICIPAL UTILITIES ASSOCIATION Training - Expense 401-546- 01 MISC SERVICES-QTR SAFETY/MGMT 750 401-923- 08 DUES/MEMBERSHIP EXPENSE-QTR ELEC DUES 401-930- 08 DUES/MEMBERSHIP EXPENSE-QTR ELEC DUES 401-930- 08 HECK GEN 75828 TOTAL FOR FUND 1: 02/09/2022 GEN 75830* NADINE HAWKINS DEP REFUND/APPLIED 235-000- 00 02/09/2022 GEN 75832* NICHOLAS KUNTZ DEP REFUND/APPLIED 235-000- 00 02/09/2022 GEN 75835* NUVERA TELEPHONE 401-921- 08 02/09/2022 GEN 75836 OLSON, BRENDAN Training - Expense 401-580- 02 02/09/2022 GEN 75837*4 OXYGEN SERVICE COMPANY INC Maintenance Other - Materials 402-554- 01 Maintenance Other - Materials 402-554- 01 MATERIALS -NITROGEN 402-574- 03 MATERIALS -NITROGEN 402-574- 03 HECK GEN 75837 TOTAL FOR FUND 1: 02/09/2022 GEN 75838*4 PRO AUTO & TRANSMISSION REPAIR Vehicles - Labor 402-554- 01 Vehicles - Material 402-554- 01 VEHICLES - MATERIAL-ELEC 402-598- 02 VEHICLES - MATERIAL-ELEC 402-598- 02 Page 7/17 Amount 3,050.00 6,950.00 59.85 71.25 130.50 19.21 17.81 298.62 975.00 4,135.38 1,050.00 33,183.00 39,343.38 260.00 48.75 1,918.62 76.05 30.30 107.04 151.97 175.47 523.73 110.27 44.14 02/17/2022 03:08 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM O1/22/2022 - 02/17/2022 Payee Description Account Dept Page 8/17 Amount Fund: 1 ELECTRIC HECK GEN 75838 TOTAL FOR FUND 1: 853.61 02/09/2022 GEN 75839* QUADIENT,INC-MAINTENANCE CONTRACT OFFICE SUPPLIES 401-921- 08 439.38 02/09/2022 GEN 75840 ROD HUTCHINSON MN LLC OVERPAYMENTS 142-000- 00 7,144.84 02/09/2022 GEN 75841* RELIANCE STANDARD LIFE -LIFE LTD INSURANCE-80o ELEC 242-000- 00 1, 640.65 LIFE INSURANCE-80o ELEC 242-000- 00 795.71 HECK GEN 75841 TOTAL FOR FUND 1: 2,436.36 02/09/2022 GEN 75842 RESCO TRANS, 37 KVA PAD 1 PHASE, 120/240 154-000- 00 7,824.00 186-000- 00 616.14 HECK GEN 75842 TOTAL FOR FUND 1: 8,440.14 02/09/2022 GEN 75843* ROBERT OR MARY JACKSON DEP REFUND/APPLIED 235-000- 00 130.00 02/09/2022 GEN 75844* ROBERTO MARTINEZ DEP REFUND/APPLIED 235-000- 00 52.00 02/09/2022 GEN 75845*4 RUNNING'S SUPPLY INC Sales Tax Receivable - Replace 186-000- 00 1.09 Generator 46 Material 402-554- 01 13.78 Building & Grounds - Materials 402-592- 02 61.49 Other Equipment - Materials 402-598- 02 68.87 HECK GEN 75845 TOTAL FOR FUND 1: 145.23 02/09/2022 GEN 75846 RYLEE FISCHER OVERPAYMENTS 142-000- 00 40.30 02/09/2022 GEN 758474 SAGINAW CONTROL & ENGINEERING CHNF enclosure 402-554- 01 53.01 Subpanel 402-554- 01 4.00 SHIPPING 401-588- 02 13.12 HECK GEN 75847 TOTAL FOR FUND 1: 70.13 02/09/2022 GEN 75849 SETH WUOLLET OVERPAYMENTS 142-000- 00 13.64 02/09/2022 GEN 75850 SETH WUOLLET OVERPAYMENTS 142-000- 00 86.12 02/17/2022 03:08 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM O1/22/2022 - 02/17/2022 Payee Description Account Dept Page 9/17 Amount Fund: 1 ELECTRIC 02/09/2022 GEN 75851 SHEGGEBY, TRICIA Cip - Residential 401-916- 07 350.00 02/09/2022 GEN 75852 SOPUS OIL, SHELL MYSELLA, S3 N 40 WEIGHT 154-000- 00 8,944.65 OIL, SHELL MYSELLA, S3 N 40 WEIGHT 154-000- 00 1.85 HECK GEN 75852 TOTAL FOR FUND 1: 8,946.50 02/09/2022 GEN 75855* STANDARD PRINTING & MAILING Office Supplies 401-921- 08 107.86 Office Supplies 401-921- 08 26.70 Office Supplies 401-921- 08 19.78 Mail Services - Ups, Fedex 401-921- 08 20.96 HECK GEN 75855 TOTAL FOR FUND 1: 175.30 02/09/2022 GEN 75856 Son, INC Cook ACED downblast fans-quote4927590 107-341- 00 8,284.00 Sales Tax Receivable - Replace 186-000- 00 652.37 HECK GEN 75856 TOTAL FOR FUND 1: 8,936.37 02/09/2022 GEN 75858* SYED COLINDRES GET REFUND/APPLIED 235-000- 00 78.00 02/09/2022 GEN 75859* UIS/SOURCECORP COLLECTION - MATERIALS 401-903- 06 2,530.69 02/09/2022 GEN 75860* UNITED PARCEL SERVICE MAIL SERVICES - UPS, FEDEX 401-921- 08 155.00 02/09/2022 GEN 75861*4 VERIZON WIRELESS TELEPHONE 401-921- 08 1,256. 98 02/09/2022 GEN 758634 ZIEGLER POWER SYSTEMS GASKET, MAO 0093614 154-000- 00 13.13 GASKET, RING MAO 0115695 154-000- 00 7.75 REGULATOR, STARTER PRESSURE 154-000- 00 457.50 SOLENOID, STARTER 154-000- 00 235.00 REGULATOR, MAO 0371583 154-000- 00 2,137.50 SENSOR, NOX - POSITION 220 154-000- 00 1,068.75 PLATE, 263380004,343935-006, 402-554- 01 121.26 Cat ET Software renewal 402-554- 01 725.00 HECK GEN 75863 TOTAL FOR FUND 1: 4,765.89 02/17/2022 03:08 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee Fund: 1 ELECTRIC 02/14/2022 GEN 996(E) MISO 02/14/2022 GEN 997(E) MISO 02/14/2022 GEN 998(E) MISO 02/15/2022 GEN 1006(E) MISO 02/16/2022 GEN 1007(E)*4 VISA CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM O1/22/2022 - 02/17/2022 Description Account Dept Page 10/17 Amount SCHEDULE 26 401-565- 03 13,860.51 SCHEDULE 26A 401-565- 03 30,891.81 SCHEDULE 26E 401-565- 03 1.14 HECK GEN 996(E) TOTAL FOR FUND 1: 44,753.46 SCHEDULE 10 401-565- 03 5,698.12 SCHEDULE 1 401-565- 03 4,371.93 SCHEDULE 2 401-565- 03 12,711.40 UNRESERVED 401-565- 03 0.01 SCHEDULE 26 401-565- 03 2,873.30 SCHEDULE 26A 401-565- 03 9.19 MISC 401-565- 03 272.18 SCHEDULE 10 401-565- 03 1,449.94 HECK GEN 998(E) TOTAL FOR FUND 1: 21,687.95 Deferred Energy Cost - Miso 174-000- 00 22,192.24 Deferred Energy Cost - Miso 174-000- 00 407.72 HECK GEN 1006(E) TOTAL FOR FUND 1: 22,599.96 Sales Tax Receivable - Replace 186-000- 00 2.52 Sales Tax Receivable - Replace 186-000- 00 18.51 Supplies 401-550- 01 3,023.72 Uniforms & Laundry 401-550- 01 71.18 Generator 41 Material 402-554- 01 382.72 Generator 41 Material 402-554- 01 235.02 Accessory Plant - Materials 402-554- 01 31.95 Vehicles - Material 402-554- 01 412.46 Training - Expense 401-580- 02 585.25 Power Equipment - Materials 402-598- 02 48.05 Breakroom/Recognition Banquet 401-926- 08 125.00 Breakroom/Recognition Banquet 401-926- 08 512.93 HECK GEN 1007(E) TOTAL FOR FUND 1: 5,449.31 Total for fund 1 ELECTRIC 335,804.72 02/17/2022 03:08 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM O1/22/2022 - 02/17/2022 Description Fund: 2 GAS O1/26/2022 GEN 989(E)* ALERUS 02/01/2022 GEN 991(E)* ARGUS DENTAL 02/02/2022 GEN 992(E)* CITIZENS BANK 02/02/2022 GEN 993(E)* PAY MENTECH 02/08/2022 GEN 999(E)* INVOICE CLOUD 02/09/2022 GEN 75762 ABELSON, RANDY 02/09/2022 GEN 75764* ALEXANDER CLINE 02/09/2022 GEN 75766* ANDREW OR SARAH MARESCH 02/09/2022 GEN 75768* ASHLEY SULLIVAN 02/09/2022 GEN 75769* BIRCHDALE FIRE & SAFETY 02/09/2022 GEN 75770*4 BORDER STATES ELECTRIC SUPPLY 02/09/2022 GEN 75771 BROWN COUNTY RURAL ELECTRIC 02/09/2022 GEN 75772* BS&A SOFTWARE 02/09/2022 GEN 75776 CENTURYLINK 02/09/2022 GEN 75777*4 CINTAS CORPORATION 4470 Account Dept Page 11/17 Amount HEALTH INSURANCE 401-926- 08 130.50 DENTAL INSURANCE-20o GAS 242-000- 00 805.54 Office Supplies 401-921- 08 101.18 Collection - Materials 401-903- 06 1,425.60 Collection - Materials 401-903- 06 1,714.61 Cip - Residential 401-916- 07 350.00 DEP REFUND/APPLIED 235-000- 00 52.50 DEP REFUND/APPLIED 235-000- 00 42.00 DEP REFUND/APPLIED 235-000- 00 45.50 GROUNDS - OUTSIDE SERVICES 401-935- 08 28.86 VALVE, EXCESS FLOW, 1200 SERIES, BF 154-000- 00 312.80 ELL, WELD FITTING, 90 DEG, 4", SMLS, 154-000- 00 30.37 TAX 401-874- 04 21.51 SALES TAX 401-874- 04 2.09 HECK GEN 75770 TOTAL FOR FUND 2: 366.77 Utilities (Electric, Satellite 401-856- 05 212.66 IT ADMIN AND SUPPORT 401-921- 08 289.25 Utilities (Electric, Satellite 401-856- 05 62.42 UNIFORMS & LAUNDRY 401-880- 04 207.67 02/17/2022 03:08 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM O1/22/2022 - 02/17/2022 Payee Description Account Dept Page 12/17 Amount Fund: 2 GAS UNIFORMS & LAUNDRY 401-880- 04 207.67 UNIFORMS & LAUNDRY 401-880- 04 315.46 HECK GEN 75777 TOTAL FOR FUND 2: 730.80 02/09/2022 GEN 75778*4 CITY OF HUTCHINSON VEHICLE/EQUIPMENT FUEL -GAS 401-880- 04 1,162.96 IT ADMIN AND SUPPORT 250 401-921- 08 6,540.43 VEHICLES/EQUIPMENT FUEL-ADMIN 55/45 401-935- 08 66.15 HECK GEN 75778 TOTAL FOR FUND 2: 7,769.54 02/09/2022 GEN 75779* CLAYTON SCHILLING DEP REFUND/APPLIED 235-000- 00 31.50 02/09/2022 GEN 75780* CODY OR JAYDENE FORESTER DEP REFUND/APPLIED 235-000- 00 105.00 02/09/2022 GEN 75782* CROW RIVER MUTUAL INS CO DEP REFUND/APPLIED 235-000- 00 259. 00 02/09/2022 GEN 75783* DANA MELVIN OR JAMES GOHEEN DEP REFUND/APPLIED 235-000- 00 31.50 02/09/2022 GEN 75786* DMV VEHICLES - MATERIAL 401-935- 08 441.79 02/09/2022 GEN 75787*4 EMBROIDERY PLUS Uniforms & Laundry 401-880- 04 29.39 02/09/2022 GEN 75788* EVERS, MATT Cip - Residential 401-916- 07 50.00 02/09/2022 GEN 75789* FAST FLYER PROPERTIES LLC DEP REFUND/APPLIED 235-000- 00 52.50 02/09/2022 GEN 75791* FIRST CHOICE FOOD & BEVERAGE BREAKROOM/RECOGNITION BANQUET 401-926- 08 38.00 BREAKROOM/RECOGNITION BANQUET 401-926- 08 57.00 HECK GEN 75791 TOTAL FOR FUND 2: 95.00 02/09/2022 GEN 75792*4 GOPHER STATE ONE -CALL INC Materials 401-874- 04 25.00 02/09/2022 GEN 75793 GROEBNER & ASSOCIATES INC SENSUS P/N# 006-31-334-00 DRIVER 402-892- 04 449.36 02/17/2022 03:08 PM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES Page 13/17 User: JMartig CHECK DATE FROM O1/22/2022 - 02/17/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Amount Fund: 2 GAS SENSUS P/N# 006-31-334-00 DRIVER 402-892- 04 28.47 HECK GEN 75793 TOTAL FOR FUND 2: 477.83 02/09/2022 GEN 75794* HAGER JEWELRY INC Office Supplies 401-921- 08 14.43 02/09/2022 GEN 75795* HANNAH HART DEP REFUND/APPLIED 235-000- 00 26.25 02/09/2022 GEN 75796*4 HILLYARD/HUTCHINSON Grounds - Materials 401-935- 08 180.63 Grounds - Materials 401-935- 08 59.80 HECK GEN 75796 TOTAL FOR FUND 2: 240.43 02/09/2022 GEN 75797* HUDSON DARNELL DEP REFUND/APPLIED 235-000- 00 122.50 02/09/2022 GEN 75798* HUTCHFIELD SERVICES INC Grounds - Outside Services 401-935- 08 910.41 02/09/2022 GEN 75799*4 HUTCHINSON WHOLESALE SUPPLY CO Vehicles - Material 402-895- 04 71.06 Vehicles - Material 402-895- 04 18.16 Operating & Maint-Brownton 416-108- 04 83.35 HECK GEN 75799 TOTAL FOR FUND 2: 172.57 02/09/2022 GEN 75800 HUTTON, KIM Cip - Residential 401-916- 07 350.00 02/09/2022 GEN 75801*4 INNOVATIVE OFFICE SOLUTIONS Office Supplies 401-921- 08 87.36 02/09/2022 GEN 75804* JACOB POPE DEP REFUND/APPLIED 235-000- 00 28.00 02/09/2022 GEN 75808 JENSEN, ARIL Cip - Residential 401-916- 07 75.00 02/09/2022 GEN 75809* JLR GARAGE DOOR SERVICE INC Grounds - Materials 401-935- 08 75.00 02/09/2022 GEN 75810* JOHN DIETEL DEP REFUND/APPLIED 235-000- 00 85.75 02/09/2022 GEN 75811* JOHNSON, ERIC Cip - Residential 401-916- 07 47.99 02/17/2022 03:08 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM O1/22/2022 - 02/17/2022 Payee Description Account Dept Page 14/17 Amount Fund: 2 GAS 02/09/2022 GEN 75812* JORDAN SCHILTZ DEP REFUND/APPLIED 235-000- 00 52.50 02/09/2022 GEN 75813* KAYLA KUEHN DEP REFUND/APPLIED 235-000- 00 84.00 02/09/2022 GEN 75814 KGM IN: 2064018, Sick FS500 Lithium 402-892- 04 485.81 02/09/2022 GEN 75815* KIMBERLY HANSON DEP REFUND/APPLIED 235-000- 00 35.00 02/09/2022 GEN 75816 KOCK, ALAN Cip - Residential 401-916- 07 350.00 02/09/2022 GEN 75817* LANCE KURTZ DEP REFUND/APPLIED 235-000- 00 21.00 02/09/2022 GEN 75818* LANGE, BRETT Cip - Residential 401-916- 07 350.00 02/09/2022 GEN 75819 LEHN, JEFF Cip - Residential 401-916- 07 350.00 02/09/2022 GEN 75820* LLOYD TULLIS DEP REFUND/APPLIED 235-000- 00 49. 00 02/09/2022 GEN 75822* MACKEDANZ, TONY Cip - Residential 401-916- 07 450.00 02/09/2022 GEN 75823* MARCO TECHNOLOGIES, LLC OFFICE SUPPLIES 401-921- 08 173.89 02/09/2022 GEN 75824* MATHENY, JEANNETTE Cip - Residential 401-916- 07 350.00 02/09/2022 GEN 75825*4 MATHESON TRI-GAS INC Gas Distribution Maintenance 402-892- 04 1,413.50 02/09/2022 GEN 75828*4 MN MUNICIPAL UTILITIES ASSOCIATION MISC SERVICES-QTR SAFETY/MGMT 250 401-923- 08 1,377.12 DUES/MEMBERSHIP EXPENSE-QTR GAS DUES 401-930- 08 763.00 HECK GEN 75828 TOTAL FOR FUND 2: 2,140.12 02/09/2022 GEN 758294 MRC GLOBAL 5/8" x 4-1/2" Xylan Coated B7 Stud W/2H 107-378- 00 158.40 Yale Figure 515 Closure, Cap and Hub 107-378- 00 757.68 02/17/2022 03:08 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM O1/22/2022 - 02/17/2022 Payee Description Account Dept Page 15/17 Amount Fund: 2 GAS FREIGHT & TAX 401-874- 04 36.22 HECK GEN 75829 TOTAL FOR FUND 2: 952.30 02/09/2022 GEN 75830* NADINE HAWKINS GET REFUND/APPLIED 235-000- 00 140.00 02/09/2022 GEN 75831 NELSON TECHNOLOGIES INC BELGAS P/N# 650-168-000 MAIN SEAT 402-892- 04 88.73 90-88SIG-20 12V Pads 402-892- 04 865.10 90-88SIG-20 12V Pads 402-892- 04 22.34 HECK GEN 75831 TOTAL FOR FUND 2: 976.17 02/09/2022 GEN 75832* NICHOLAS KUNTZ GET REFUND/APPLIED 235-000- 00 26.25 02/09/2022 GEN 75833 NOVASPECT INC Fisher NPS 1/4 x 1/4 912N, NPT, 401-874- 04 219.04 Fisher NPS 1/4 x 1/4 912N, NPT, 401-874- 04 22.64 Fisher IN: 1J857827022, 1 - 5 PSIG 401-874- 04 45.00 Fisher IN: 1J857827022, 1 - 5 PSIG 401-874- 04 4.65 HECK GEN 75833 TOTAL FOR FUND 2: 291.33 02/09/2022 GEN 75834 NIL CONSTRUCTION CO Mains 107-376- 00 2,800.00 02/09/2022 GEN 75835* NUVERA TELEPHONE 401-921- 08 639.54 02/09/2022 GEN 75837*4 OXYGEN SERVICE COMPANY INC Materials 401-874- 04 107.04 02/09/2022 GEN 75838*4 PRO AUTO & TRANSMISSION REPAIR Vehicles - Material 402-895- 04 356.92 Vehicles - Material 402-895- 04 130.95 HECK GEN 75838 TOTAL FOR FUND 2: 487.87 02/09/2022 GEN 75839* QUADIENT,INC-MAINTENANCE CONTRACT OFFICE SUPPLIES 401-921- 08 146.46 02/09/2022 GEN 75841* RELIANCE STANDARD LIFE -LIFE LTD INSURANCE-20o GAS 242-000- 00 410.16 LIFE INSURANCE-20o GAS 242-000- 00 198.93 HECK GEN 75841 TOTAL FOR FUND 2: 609.09 02/17/2022 03:08 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM O1/22/2022 - 02/17/2022 Description Fund: 2 GAS 02/09/2022 GEN 75843* ROBERT OR MARY JACKSON 02/09/2022 GEN 75844* ROBERTO MARTINEZ 02/09/2022 GEN 75845*4 RUNNING'S SUPPLY INC 02/09/2022 GEN 75848 SCHMELING, COURTNEY 02/09/2022 GEN 75853 SOUTH CENTRAL ELECTRIC ASS'N 02/09/2022 GEN 75854 SPIERING, SHERWYN 02/09/2022 GEN 75855* STANDARD PRINTING & MAILING 02/09/2022 GEN 758574 SWAGELOK MINNESOTA 02/09/2022 GEN 75858* SYED COLINDRES Account Dept Page 16/17 Amount DEP REFUND/APPLIED 235-000- 00 70.00 DEP REFUND/APPLIED 235-000- 00 28.00 Materials 401-874- 04 19.41 Cip - Residential 401-916- 07 59.99 UTILITIES (ELECTRIC, SATELLITE 401-856- 05 34.00 Cip - Residential 401-916- 07 100.00 Office Supplies 401-921- 08 35.95 Office Supplies 401-921- 08 16.18 Mail Services - Ups, Fedex 401-921- 08 17.14 Mail Services - Ups, Fedex 401-921- 08 10.40 Mail Services - Ups, Fedex 401-921- 08 10.05 HECK GEN 75855 TOTAL FOR FUND 2: 89.72 ELBOW REDUCING, 3/8" TUBE X 3/4" MNPT 154-000- 00 476.70 UNION, REDUCING, 3/8" TUBE X 3/4" MNPT 154-000- 00 413.80 NUT, 3/8", SWAGELOK, SS-602-1 154-000- 00 129.60 ELBOW, 90 DEG, SWAGELOK SS-1210-2-12 154-000- 00 443.10 NUT, 3/4", SWAGELOK, SS-1212-1 154-000- 00 88.10 FERRULE, FRONT, SWAGELOK, SS-1213-1 154-000- 00 147.60 FERRULE, 3/4", SWAGELOK, SS-1214-1 154-000- 00 130.40 TUBING, 3/4" X .065" WALL 316SS, 154-000- 00 951.60 Swagelok P/N# SS-600-2-8 401-874- 04 319.20 Swagelok P/N# SS-600-1-8 401-874- 04 404.25 Swagelok P/N# MS-IG-468 401-874- 04 29.90 FREIGHT & SALES TAX 401-874- 04 362.11 HECK GEN 75857 TOTAL FOR FUND 2: 3,896.36 DEP REFUND/APPLIED 235-000- 00 42.00 02/17/2022 03:08 PM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM O1/22/2022 - 02/17/2022 Description Fund: 2 GAS 02/09/2022 GEN 75859* UIS/SOURCECORP 02/09/2022 GEN 75860* UNITED PARCEL SERVICE 02/09/2022 GEN 75861*4 VERIZON WIRELESS 02/09/2022 GEN 75862 WURDELL, GUS 02/16/2022 GEN 1007(E)*4 VISA Account Dept COLLECTION - MATERIALS 401-903- 06 MAIL SERVICES - UPS, FEDEX 401-921- 08 UTILITIES (ELECTRIC, SATELLITE-SCADA 401-856- 05 TELEPHONE 401-921- 08 HECK GEN 75861 TOTAL FOR FUND 2: Cip - Residential 401-916- 07 Other Equipment - Materials 402-895- 04 Utilities (Electric, Satellite 401-856- 05 Breakroom/Recognition Banquet 401-926- 08 HECK GEN 1007(E) TOTAL FOR FUND 2: Total for fund 2 GAS TOTAL - ALL FUNDS '*'-INDICATES CHECK DISTRIBUTED TO MORE THAN ONE FUND '#'-INDICATES CHECK DISTRIBUTED TO MORE THAN ONE DEPARTMENT Page 17/17 Amount 843.56 51.66 117.25 418.99 536.24 650.00 48.05 81.54 183.61 313.20 38,176.94 373,981.66 HUTCHINSON UTILITIES COMMISSION COMBINED DIVISIONS FINANCIAL REPORT FOR JANUARY, 2022 2022 2021 Di %Chng 2022 2021 Di %Chng FuIIYrBud %of Bud Combined Division Customer Revenue $ 4,073,373 $ 3,249,098 $ 824,275 25.4% $ 4,073,373 $ 3,249,098 $ 824,275 25.4% $ 37,355,080 10.9% Sales for Resale $ 278,518 $ 245,327 $ 33,191 13.5% $ 278,518 $ 245,327 $ 33,191 13.5% $ 3,692,000 7.5% NU Transportation $ 88,487 $ 85,481 $ 3,006 3.5% $ 88,487 $ 85,481 $ 3,006 3.5% $ 1,010,124 8.8% Electric Division Transfer $ 59,724 $ 56,879 $ 2,844 5.0% $ 59,724 $ 56,879 $ 2,844 5.0% $ 716,383 8.3% Other Revenues $ 32,853 $ 35,601 $ (2,749) (7.7%) $ 32,853 $ 35,601 $ (2,749) (7.7%) $ 479,700 6.8% Interest Income $ 35,907 $ 31,725 $ 4,182 13.2% $ 35,907 $ 31,725 $ 4,182 13.2% $ 383,456 9.4% TOTAL REVENUES $ 4,568,861 $ 3,704,111 $ 864,750 23.3% $ 4,568,861 $ 3,704,111 $ 864,750 23.3% $ 43,636,743 10.5% Salaries & Benefits $ 612,789 $ 572,324 $ 40,465 7.07% $ 612,789 $ 572,324 $ 40,465 7.1% $ 7,270,807 8.4% Purchased Commodities $ 2,503,578 $ 1,920,150 $ 583,428 30.4% $ 2,503,578 $ 1,920,150 $ 583,428 30.4% $ 19,927,587 12.6% Transmission $ 232,353 $ 220,432 $ 11,921 5.4% $ 232,353 $ 220,432 $ 11,921 5.4% $ 3,325,000 7.0% Generator Fuel/Chem. $ 133,631 $ 6,488 $ 127,143 1,959.8% $ 133,631 $ 6,488 $ 127,143 1,959.8% $ 1,219,698 11.0% Depreciation $ 378,711 $ 367,186 $ 11,524 3.1% $ 378,711 $ 367,186 $ 11,524 3.1% $ 4,400,000 8.6% Transfers (Elect./City) $ 215,323 $ 212,478 $ 2,844 1.3% $ 215,323 $ 212,478 $ 2,844 1.3% $ 2,583,875 8.3% Operating Expense $ 309,949 $ 233,900 $ 76,048 32.5% $ 309,949 $ 233,900 $ 76,048 32.5% $ 3,367,066 9.2% Debt Interest $ 75,076 $ 83,542 $ (8,467) (10.1%) $ 75,076 $ 83,542 $ (8,467) 10.1% $ 900,907 8.3% TOTAL EXPENSES $ 4,461,409 $ 3,616,501 $ 844,909 23.4% $ 4,461,409 $ 3,616,501 $ 844,909 23.4% $ 42,994,940 10.4% NET PROFIT/(LOSS) $ 107,451 $ 87,610 $ 19,841 22.6%1 107,451 $ 87,610 $ 19,841 22.6% $ 641,803 16.7% January January YTD YTD 2022 HUC 2022 2021 Change 2022 2021 Change Budget Target Gross Margin %: 28.4% 31.8% -3.4% 28.4% 31.8% -3.4% 32.6% W Operating Income Per Revenue $ (%): 2.6% 2.9% -0.3% 2.6% 2.9% -0.3% 2.2% Net Income Per Revenue $ (%): 2.4% 2.4% 0.0% 2.4% 2.4% 0.0% 1.5% HUTCHINSON UTILITIES COMMISSION ELECTRIC DIVISION FINANCIAL REPORT FOR JANUARY, 2022 2022 2021 Di % Chna 2022 2021 Di . Electric Division Customer Revenue $ 2,021,319 $ 1,884,687 $ 136,632 7.2% $ 2,021,319 $ 1,884,687 $ 136,632 Sales for Resale $ 278,518 $ 245,327 $ 33,191 13.5% $ 278,518 $ 245,327 $ 33,191 Other Revenues $ 3,459 $ 17,332 $ (13,873) (80.0%) $ 3,459 $ 17,332 $ (13,873) Interest Income $ 19,348 $ 17,481 $ 1,867 10.7% $ 19,348 $ 17,481 $ 1,867 TOTAL REVENUES $ 2,322,643 $ 2,164,826 $ 157,817 7.3% $ 2,322,643 $ 2,164,826 $ 157,817 Chna I Full Yr Bud % of Bud 7.2% $ 25,325,244 8.0% 13.5% $ 3,692,000 7.5% (80.0%) $ 188,599 1.8% 10.7% $ 208,456 9.3% 7.3%1 $ 29,414,299 7.9% Salaries & Benefits $ 459,546 $ 427,360 $ 32,186 7.5% $ 459,546 $ 427,360 $ 32,186 7.5% $ 5,319,511 Purchased Power $ 1,062,267 $ 1,086,692 $ (24,425) (2.2%) $ 1,062,267 $ 1,086,692 $ (24,425) (2.2%) $ 12,297,526 Transmission $ 232,353 $ 220,432 $ 11,921 5.4% $ 232,353 $ 220,432 $ 11,921 5.4% $ 3,325,000 Generator Fuel/Chem. $ 133,631 $ 6,488 $ 127,143 1,959.8% $ 133,631 $ 6,488 $ 127,143 1,959.8% $ 1,219,698 Depreciation $ 287,381 $ 276,354 $ 11,027 4.0% $ 287,381 $ 276,354 $ 11,027 4.0% $ 3,300,000 Transfers (Elect./City) $ 167,519 $ 164,674 $ 2,844 1.7% $ 167,519 $ 164,674 $ 2,844 1.7% $ 2,010,226 Operating Expense $ 251,066 $ 147,402 $ 103,664 70.3% $ 251,066 $ 147,402 $ 103,664 70.3% $ 1,928,042 Debt Interest $ 40,071 $ 43,321 $ (3,250) (7.5%) $ 40,071 $ 43,321 $ (3,250) 7.5% $ 480,857 TOTAL EXPENSES $ 2,633,835 $ 2,372,723 $ 261,112 11.0% $ 2,633,835 $ 2,372,723 $ 261,112 11.0% $ 29,880,860 NET PROFIT/(LOSS) $ (311,192) $ (207,897) $ (103,295) 49.7% $ (311,192) $ (207,897) $ (103,295) 49.7% $ (466,561) 8.6% 8.6% 7.0% 11.0% 8.7% 8.3% 13.0% 8.3% 8.8% 66.7% 2022 2021 Di %Chna 2022 2021 Di . %Chna Full YrBud %of Bud Electric Division Residential 4,791,076 4,418,147 372,929 8.44% 4,791,076 4,418,147 372,929 8.44% 54,152,764 8.8% All Electric 420,577 333,274 87,303 26.20% 420,577 333,274 87,303 26.20% 2,641,117 15.9% Small General 1,680,183 1,496,926 183,257 12.24% 1,680,183 1,496,926 183,257 12.24% 18,688,349 9.0% Large General 6,721,270 6,399,230 322,040 5.03% 6,721,270 6,399,230 322,040 5.03% 83,253,310 8.1% Industrial 9,174,000 8,809,000 365,000 4.14% 9,174,000 8,809,000 365,000 4.14% 122,088,679 7.5% Total KWH Sold 22,787,106 21,456,577 1,330,529 6.20%1 22,787,106 21,456,577 1,330,529 6.20%1 280,824,218 8.1% January January YTD YTD 2022 HUC 2022 2021 Change 2022 2021 Change Budget Target Gross Margin %: 23.1% 24.0% -0.8% 23.1% 24.0% -0.8% 29.2% 24%-28% Operating Income Per Revenue $ (%): -12.6% -9.3% -3.3% -12.6% -9.3% -3.3% -0.7% 0%- 1% Net Income Per Revenue $ (%): -13.4% -9.6% -3.8% -13.4% -9.6% -3.8% -1.6% 0%- 1% Customer Revenue per KWH: $0.0887 $0.0878 $0.0009 $0.0887 $0.0878 $0.0009 $0.0902 $0.0902 Total Power Supply Exp. per KWH: $0.0777 $0.0755 $0.0022 $0.0777 $0.0755 $0.0022 $0.0736 $0.0736 Net Loss increased by $103,295 over January 2021. Increased customer revenue was offset by an increase in generator fuels to run the generators longer as well as an increase in operating expenses. Some increases in operating expenses include paying a full year of MMUA dues in January vs Quarterly $28,000, $33,000 3M LTC Repairs, $14,000 increase in CIP rebates and assessments, $24,000 increased inventory withdrawal for Unit 1 repairs, and some increased IT expenses due to timing of billing. Sales for Resale of $278,518 consisted of $34,268 in market sales, $98,000 in capacity sales to Rice Lake and $146,250 in capacity sales to AEP. January 2021 Sales for Resale of $245,327 included $1,077 in market sales, $146,250 in capacity sales to AEP, and $98,000 in capacity sales to Rice Lake. January 2020 Sales for Resale of $151,621 consisted of $2,121 in market sales, $136,000 in capacity sales to SMMPA, and $13,500 in capacity sales to AEP. Overall Purchased Power decreased by $24,425. MRES purchases decreased by $25,414 and market purchases/MISO costs increased by $989. MRES's 2022 rate is $49.11/MWhr, which is a decrease from $51.33/MWhr in 2021. Power Cost Adjustment for January 2022 was $.00464/kwhr bringing in an additional $106,073 for the month. Last year's power cost adjustment for January 2021 brought in $67,658 for the month. HUTCHINSON UTILITIES COMMISSION GAS DIVISION FINANCIAL REPORT FOR JANUARY, 2022 2022 2021 Di %Chna 2022 2021 Di . %Chna Full YrBud %of Bud Gas Division Customer Revenue $ 2,052,054 $ 1,364,411 $ 687,643 50.4% $ 2,052,054 $ 1,364,411 $ 687,643 50.4% $ 12,029,836 17.1% Transportation $ 88,487 $ 85,481 $ 3,006 3.5% $ 88,487 $ 85,481 $ 3,006 3.5% $ 1,010,124 8.8% Electric Div. Transfer $ 59,724 $ 56,879 $ 2,844 5.0% $ 59,724 $ 56,879 $ 2,844 5.0% $ 716,383 8.3% Other Revenues $ 29,394 $ 18,270 $ 11,124 60.9% $ 29,394 $ 18,270 $ 11,124 60.9% $ 291,101 10.1% Interest Income $ 16,560 $ 14,244 $ 2,316 16.3% $ 16,560 $ 14,244 $ 2,316 16.3% $ 175,000 9.5% TOTAL REVENUES $ 2,246,218 $ 1,539,285 $ 706,933 45.9% $ 2,246,218 $ 1,539,285 $ 706,933 45.9% $ 14,222,444 15.8% Salaries & Benefits $ 153,243 $ 144,964 $ 8,279 5.7% $ 153,243 $ 144,964 $ 8,279 5.7% $ 1,951,296 7.9% Purchased Gas $ 1,441,311 $ 833,458 $ 607,853 72.9% $ 1,441,311 $ 833,458 $ 607,853 72.9% $ 7,630,061 18.9% Operating Expense $ 58,883 $ 86,499 $ (27,616) (31.9%) $ 58,883 $ 86,499 $ (27,616) (31.9%) $ 1,439,024 4.1% Depreciation $ 91,329 $ 90,832 $ 497 0.5% $ 91,329 $ 90,832 $ 497 0.5% $ 1,100,000 8.3% Transfers (City) $ 47,804 $ 47,804 $ 0 0.0% $ 47,804 $ 47,804 $ 0 0.0% $ 573,649 8.3% Debt Interest $ 35,004 $ 40,221 $ (5,217) 0.0% $ 35,004 $ 40,221 $ (5,217) 13.0% $ 420,050 8.3% TOTAL EXPENSES $ 1,827,574 $ 1,243,778 $ 583,797 46.9% $ 1,827,574 $ 1,243,778 $ 583,797 46.9% $ 13,114,080 13.9% NET PROFIT/(LOSS) $ 418,643 $ 295,507 $ 123,136 41.7% $ 418,643 $ 295,507 $ 123,136 41.7% $ 1,108,364 37.8% 2022 2021 Di %Chna 2022 2021 Di %Chna Full YrBud %of Bud Gas Division Residential 92,433,439 69,479,449 22,953,990 33.04% 92,433,439 69,479,449 22,953,990 33.04% 439,919,000 21.0% Commercial 65,831,765 48,864,526 16,967,239 34.72% 65,831,765 48,864,526 16,967,239 34.72% 347,946,000 18.9% Industrial 116,389,619 99,801,642 16,587,977 16.62% 116,389,619 99,801,642 16,587,977 16.62% 873,587,000 13.3% Total CF Sold 274,654,823 218,145,617 56,509,206 25.90% 274,654,823 218,145,617 56,509,206 25.90% 1,661,452,000 16.5% January January YTD YTD 2022 HUC 2022 2021 Change 2022 2021 Change Budget Target Gross Margin %: 33.9% 42.8% -8.9% 33.9% 42.8% -8.9% 39.9% 37%-40% Operating Income Per Revenue $ (%): 18.5% 20.1% -1.6% 18.5% 20.1% -1.6% 8.2% IIIIIIIIIIIIII Net Income Per Revenue $ (%): 18.6% 19.2% -0.6% 18.6% 19.2% -0.6% 7.8% IIIIIIIIIIIIII Contracted Customer Rev. per CF: $0.0061 $0.0040 $0.0021 $0.0061 $0.0040 $0.0021 $0.0056 Customer Revenue per CF: $0.0084 $0.0081 $0.0003 $0.0084 $0.0081 $0.0003 $0.0088 $0.0088 Total Power Supply Exp. per CF: $0.0053 $0.0039 $0.0013 $0.0053 $0.0039 $0.0013 $0.0050 $0.0050 January 2022 net income increased by $123,136 mostly due to increased customer revenues caused by colder temperatures compared to January 2021. There was no fuel cost credit adjustment for January 2022 January 2021 credits totalled $149,433. 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 JANUARY31, 2022 Electric Gas Total Division Division 2022 Total Net Change 2021 Total (YTD) 5,864,801.83 10,863,069.22 16,727,871.05 18,371,283.32 (1,643,412.27) 680.00 170.00 850.00 850.00 - 2,750,000.00 700,000.00 3,450,000.00 3,450,000.00 - 1,293,543.00 573,649.00 1,867,192.00 1,867,192.00 - 364,336.05 - 364,336.05 333,806.28 30,529.77 - 578,320.48 578,320.48 651,306.61 (72,986.13) 800,000.00 200,000.00 1,000,000.00 1,000,000.00 - 896,809.28 - 896,809.28 897,142.72 (333.44) - 358,341.62 358,341.62 341,275.00 17,066.62 522,335.64 2,188,694.02 2,711,029.66 2,711,029.66 - 12,492,505.80 15,462,244.34 27,954,750.14 29,623,885.59 (1,669,135.45) 2,121,595.60 2,157,755.71 4,279,351.31 3,650,360.72 628,990.59 47,207.51 47,207.50 94,415.01 97,985.30 (3,570.29) 2,168,803.11 2,204,963.21 4,373,766.32 3,748,346.02 625,420.30 1,722,010.51 509,739.15 2,231,749.66 1,984,812.11 246,937.55 356,927.00 56,127.64 413,054.64 349,629.25 63,425.39 144,706.18 - 144,706.18 93,884.87 50,821.31 313,166.00 - 313,166.00 313,166.00 - - 104,390.00 104,390.00 104,390.00 - 2,536,809.69 670,256.79 3,207,066.48 2,845,882.23 361,184.25 17,198,118.60 18,337,464.34 35,535,582.94 36,218,113.84 (682,530.90) 690,368.40 3,899,918.60 4,590,287.00 4,590,287.00 - 111,114,827.56 42,656,015.41 153,770,842.97 150,503,499.53 3,267,343.44 (63,974,234.57) (19,263,456.71) (83,237,691.28) (79,130,683.28) (4,107,008.00) 27,918.13 27,538.87 55,457.00 1,436,197.97 (1,380,740.97) 47,858,879.52 27,320,016.17 75,178,895.69 77,399,301.22 (2,220,405.53) 65,056,998.12 45,657,480.51 110,714,478.63 113,617,415.06 (2,902,936.43) HUTCHINSON UTILITIES COMMISSION BALANCE SHEET - CONSOLIDATED JANUARY31, 2022 Electric Gas Total Total Net Change Division Division 2022 2021 Total (YTD) Current Liabilities Current Portion of Long-term Debt Bonds Payable 700,000.00 1,730,000.00 2,430,000.00 2,240,000.00 190,000.00 Bond Premium - 185,608.32 185,608.32 185,608.32 - Accounts Payable 1,819,724.42 1,558,210.82 3,377,935.24 4,208,868.17 (830,932.93) Accrued Expenses Accrued Interest 80,142.69 70,008.32 150,151.01 166,084.34 (15,933.33) Accrued Payroll 124,691.34 42,410.51 167,101.85 177,053.99 (9,952.14) Total Current Liabilities 2,724,558.45 3,586,237.97 6,310,796.42 6,977,614.82 (666,818.40) Long -Term Liabilities Noncurrent Portion of Long-term Debt 2017 Bonds 14,030,000.00 - 14,030,000.00 14,730,000.00 (700,000.00) 2012 Bonds - 7,780,000.00 7,780,000.00 9,510,000.00 (1,730,000.00) Bond Premium 2012 529,735.20 711,498.19 1,241,233.39 1,460,298.67 (219,065.28) Pension Liability- Electric 3,026,207.00 - 3,026,207.00 3,026,207.00 - Pension Liability - Electric OPEB 84,054.00 - 84,054.00 84,054.00 - Pension Liability- Nat Gas - 1,008,736.00 1,008,736.00 1,008,736.00 - Pension Liability - Nat Gas OPEB - 28,018.00 28,018.00 28,018.00 - Accrued Vacation Payable 431,660.51 163,481.47 595,141.98 584,864.37 10,277.61 Accrued Severance 91,639.00 31,615.85 123,254.85 124,387.07 (1,132.22) Deferred Outflows - Electric 123,417.00 - 123,417.00 123,417.00 - Deferred Outflows - Nat Gas - 41,139.00 41,139.00 41,139.00 - Total Long -Term Liabilities 18,316,712.71 9,764,488.51 28,081,201.22 30,721,121.11 (2,639,919.89) Net Position Retained Earnings 44,015,726.96 32,306,754.03 76,322,480.99 75,918,679.13 403,801.86 Total Net Position 44,015,726.96 32,306,754.03 76,322,480.99 75,918,679.13 403,801.86 Total Liabilities and Net Position 65,056,998.12 45,657,480.51 110,714,478.63 113,617,415.06 (2,902,936.43) Hutchinson Utilities Commission Cash -Designations Report, Combined January 31, 2022 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest January 2022 December 2021 Position Savings, Checking, Investments varies varies varies 27,954,750.14 27,956,252.86 (1,502.72) Total Operating Funds 27,954,750.14 27,956,252.86 (1,502.72) Debt Reserve Requirements Debt Reserve Requirements Total Restricted Funds Operating Reserve Rate Stabalization Funds PILOT Funds Catastrophic Funds Capital Reserves Total Designated Funds Bond Covenants - sinking fund Bond Covenants -1 year Max. P & I Min 60 days of 2022 Operating Bud. Charter (Formula Only) Risk Mitigation Amount 5 Year CIP (2022-2026 Fleet & Infrastructure Maintenance) 1,255,150.90 977,575.37 277,575.53 2,711,029.66 2,711,029.66 - 3,966,180.56 3,688,605.03 277,575.53 6,432,490.00 5,965,162.00 467,328.00 942,656.53 965,606.89 (22,950.36) 1,867,192.00 1,867,192.00 1, 000, 000.00 1, 000, 000.00 3,450,000.00 3,450,000.00 - 13,692,338.53 13,247,960.89 444,377.64 YE YE YE YE YTD HUC 2018 2019 2020 2021 2022 Target Debt to Asset 37.7% 34.9% 32.3% 30.8% 31.1% Current Ratio 3.93 5.11 5.67 5.22 4.94 RONA 3.16% 2.25% 3.62% 0.41% 0.11% Change in Cash Balance (From 12131114 to 113112022) Month End Electric Elec. Change Natural Gas Gas Change Total Total Change 1/31/2022 12,492,506 15,462,244 27,954,750 12/31/2021 12,870,253 (377,747) 15,086,000 376,244 27,956,253 (1,503) 12/31/2020 14,239,233 (1,368,981) 15,019,173 66,827 29,258,406 (1,302,153) 12/31/2019 12,124,142 2,115,092 13,837,040 1,182,133 25,961,181 3,297,225 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 January 31, 2022 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest January 2022 December 2021 Position Savings, Checking, Investments varies varies varies 27,954,750.14 27,956,252.86 (1,502.72) Total HUC Operating Funds 27,954,750.14 27,956,252.86 (1,502.72) Debt Restricted Requirements Debt Restricted Requirements Total Restricted Funds Bond Covenants - sinking fund Bond Covenants -1 year Max. P & 1 896,809.28 522,335.64 1,419,144.92 798,404.59 522,335.64 1,320,740.23 98,404.69 - 98,404.69 Excess Reserves Less Restrictions, Electric 11,073,360.88 11,549,512.60 (476,151.72) Operating Reserve Min 60 days of 2022 Operating Bud. 4,430,143.33 4,379,554.00 50,589.33 Rate Stabalization Funds $400K-$1.2K 364,336.05 364,336.05 - PILOT Funds Charter (Formula Only) 1,293,543.00 1,293,543.00 Catastrophic Funds Risk Mitigation Amount 800,000.00 800,000.00 Capital Reserves 5 Year CIP (2022-2026 Fleet & Infrastructure Maintenance) 2,750,000.00 2,750,000.00 - Total Designated Funds 9,638,022.38 9,587,433.05 50,589.33 Excess Reserves Less Restrictions & Designations, Electric 1,435,338.50 1,962,079.55 (526,741.05) YE YE YE YE YTD APPA Ratio HUC 2018 2019 2020 2021 2022 SK-10K Cust. Target Debt to Asset Ratio (* w/Gen.) 35.7% 34.1% 32.6% 32.2% 32.3% 50.1% Current Ratio 3.63 5.26 6.18 5.70 5.68 2.43 RONA -0.3% -0.4% 2.5% -1.2% -0.5% NA >0% Hutchinson Utilities Commission Cash -Designations Report, Gas January 31, 2022 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest January 2022 December 2021 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 27,954,750.14 27,956,252.86 (1,502.72 27,954,750.14 27,956,252.86 (1,502.72 358, 341.62 179,170.78 179,170.84 2,188,694.02 2,188,694.02 - 2,547,035.64 2,367,864.80 179,170.84 Operating Reserve Min 60 days of 2022 Operating Bud. 2,002,346.67 1,585,608.00 416,738.67 Rate Stabalization Funds $200K-$600K 578,320.48 601,270.84 (22,950.36) PILOT Funds Charter (Formula Only) 573,649.00 573,649.00 Catastrophic Funds Risk Mitigation Amount 200,000.00 200,000.00 Capital Reserves 5 Year CIP ( 2022-2026 Fleet & Infrastructure Maintenance) 700,000.00 700,000.00 - Total Designated Funds 4,054,316.15 3,660,527.84 393,788.31 YE YE YE YE YTD HUC 2018 2019 2020 2021 2022 APGA Ratio Target Debt to Asset 40.7% 36.1% 32.0°% 28 8°% 29.2°% TBD Current Ratio 4.33 4.96 5.18 4.79 4.37 TBD RONA 8.3% 6.4% 5.3% 2.9% 1.1% TBD HUTCHINSON UTILITIES COMMISSION Investment Report For the Month Ended January 31, 2022 Interest Current Date of Date of Par Current Purchase Unrealized Premium Next Institution Description Rate YlM Purchase Maturity Value Value Amount Gain/(Loss) (Discount) Call Date Wells Fargo Money Market 0.010 % 0.010 % NA NA - 10,534.97 - - - N/A Wells Fargo FHLB 0.300% 0.587% 01/29/2021 01/29/2026 295,000.00 286,002.50 295,000.00 (8,997.50) - 07/29/2022 Wells Fargo FHLB 0.300% 0.525% 02/09/2021 02/09/2026 470,000.00 455,011.70 470,000.00 (14,988.30) - 02/09/2022 Wells Fargo FHLB 0.300% 1.432% 04/29/2021 04/29/2026 400,000.00 394,640.00 400,000.00 (5,360.00) - 06/29/2022 Wells Fargo FHLB 0.650% 1.069% 06/30/2021 06/30/2026 300,000.00 292,479.00 300,000.00 (7,521.00) - 03/30/2022 Wells Fargo FHLB 0.500 % 1.281 % 09/30/2021 09/30/2026 250,000.00 244,800.00 250,000.00 (5,200.00) - 03/30/2022 Wells Fargo CD's 1.700 % 1.700 % 02/21/2020 02/22/2022 245,000.00 245,237.65 245,000.00 237.65 - N/A Wells Fargo CD's 2.000% 2.000% 08/29/2020 08/22/2022 200,000.00 201,470.00 200,000.00 1,470.00 - 03/29/2022 Wells Fargo CD's 0.300% 0.300% 01/08/2021 01/08/2024 245,000.00 241,854.20 245,000.00 (3,145.80) - N/A Wells Fargo CD's 0.450% 0.450% 04/14/2021 04/15/2024 245,000.00 241,812.55 245,000.00 (3,187.45) - 02/14/2022 Wells Fargo CD's 0.550 % 0.550 % 08/02/2021 08/05/2024 245,000.00 241,577.35 245,000.00 (3,422.65) - N/A Wells Fargo CD's 1.100% 1.100% 01/31/2022 01/31/2025 245,000.00 244,100.85 245,000.00 (899.15) - 07/31/2022 Wells Fargo CD's 1.000 % 1.000 % 05/19/2021 05/19/2026 245,000.00 239,673.70 245,000.00 (5,326.30) - N/A Wells Fargo CD's 1.000 % 1.000 % 07/28/2021 07/28/2026 245,000.00 238,181.65 245,000.00 (6,818.35) - N/A Wells Fargo CD's 1.050 % 1.050 % 08/08/2021 08/25/2026 238,000.00 232,345.12 238,000.00 (5,654.88) - N/A Wells Fargo CD's 1.000 % 1.207 % 07/31/2021 07/13/2028 245,000.00 236,924.80 245,000.00 (8,075.20) 06/13/2022 Broker Total 29.4 4,113,000.00 4,046,646.04 4,113,000.00 (76,888.93) - Cetera Investment Services Money Market 0.010 % 0.010 % N/A N/A - 965.89 - - - N/A Cetera Investment Services Municipal Bonds 2.655% 2.208% 12/11/2017 03/01/2022 300,000.00 300,546.00 305,314.92 (4,768.92) 5,314.92 N/A Cetera Investment Services Municipal Bonds 3.000% 3.118% 12/20/2018 08/01/2022 50,000.00 50,436.50 50,377.67 58.83 377.67 N/A Cetera Investment Services Municipal Bonds 3.650% 3.004% 12/20/2018 02/01/2023 250,000.00 255,437.50 256,165.00 (727.50) 6,165.00 N/A Cetera Investment Services Municipal Bonds 3.240% 3.240% 11/17/2017 02/15/2023 80,000.00 79,198.40 69,633.48 9,564.92 (10,366.52) N/A Cetera Investment Services Municipal Bonds 3.075% 3.236% 12/20/2018 06/01/2023 50,000.00 51,124.00 49,746.15 1,377.85 (253.85) N/A Cetera Investment Services Municipal Bonds 5.290% 2.724% 04/18/2019 06/01/2023 260,000.00 273,304.20 291,059.96 (17,755.76) 31,059.96 N/A Cetera Investment Services Municipal Bonds 2.500% 3.181 % 12/20/2018 08/01/2023 35,000.00 35,430.85 34,320.05 1,110.80 (679.95) N/A Cetera Investment Services Municipal Bonds 3.400% 3.148% 12/20/2018 11/01/2023 125,000.00 129,055.00 126,376.25 2,678.75 1,376.25 N/A Cetera Investment Services Municipal Bonds 3.400% 3.148% 12/20/2018 11/01/2023 65,000.00 67,108.60 65,715.65 1,392.95 715.65 N/A Cetera Investment Services Municipal Bonds 2.854% 3.173% 12/20/2018 02/01/2024 100,000.00 102,628.00 99,605.96 3,022.04 (394.04) N/A Cetera Investment Services Municipal Bonds 2.977% 3.246% 12/20/2018 03/15/2024 250,000.00 258,325.00 248,743.99 9,581.01 (1,256.01) N/A Cetera Investment Services Municipal Bonds 1.940% 1.821 % 01/13/2020 05/01/2024 65,000.00 65,601.25 65,570.70 30.55 570.70 N/A Cetera Investment Services Municipal Bonds 5.742% 3.658% 04/11/2019 08/01/2024 275,000.00 293,284.75 302,390.00 (9,105.25) 27,390.00 N/A Cetera Investment Services Municipal Bonds 2.528% 1.918% 01/13/2020 12/01/2024 100,000.00 102,499.00 102,999.53 (500.53) 2,999.53 N/A Cetera Investment Services Municipal Bonds 3.922% 3.429% 12/20/2018 12/01/2024 204,000.00 217,107.00 208,181.10 8,925.90 4,181.10 N/A Cetera Investment Services Municipal Bonds 4.400% 3.221 % 04/11/2019 07/01/2025 500,000.00 525,405.00 539,101.11 (13,696.11) 39,101.11 07/01/2023 Cetera Investment Services Municipal Bonds 5.640% 3.007% 04/18/2019 08/15/2025 205,000.00 188,618.45 169,737.95 18,880.50 (35,262.05) N/A Cetera Investment Services Municipal Bonds 3.743% 2.740% 04/18/2019 09/15/2025 215,000.00 230,512.25 228,334.53 2,177.72 13,334.53 N/A Cetera Investment Services Municipal Bonds 3.379% 1.934% 08/19/2019 10/01/2025 310,000.00 325,757.30 339,739.18 (13,981.88) 29,739.18 N/A Cetera Investment Services Municipal Bonds 5.600% 1.186% 07/28/2020 12/01/2025 45,000.00 51,580.80 55,250.55 (3,669.75) 10,250.55 N/A Cetera Investment Services Municipal Bonds 4.250% 3.258% 04/11/2019 01/01/2026 500,000.00 543,030.00 529,769.03 13,260.97 29,769.03 N/A Cetera Investment Services Municipal Bonds 2.420% 1.175% 10/06/2020 03/01/2026 100,000.00 101,866.00 106,734.28 (4,868.28) 6,734.28 N/A Cetera Investment Services Municipal Bonds 1.609% 1.124% 09/24/2020 04/01/2026 285,000.00 279,770.25 292,370.10 (12,599.85) 7,370.10 N/A Cetera Investment Services Municipal Bonds 6.690% 3.356% 04/18/2019 04/15/2026 60,000.00 54,558.00 47,545.20 7,012.80 (12,454.80) N/A Cetera Investment Services Municipal Bonds 5.900 % 1.451 % 07/28/2020 06/15/2026 75,000.00 85,482.75 93,741.75 (8,259.00) 18,741.75 N/A Cetera Investment Services Municipal Bonds 0.000% 1.415% 08/13/2020 07/01/2026 100,000.00 90,769.00 92,037.00 (1,268.00) (7,963.00) N/A Cetera Investment Services Municipal Bonds 3.250% 2.903% 04/18/2019 08/01/2026 500,000.00 524,230.00 514,790.69 9,439.31 14,790.69 N/A Cetera Investment Services Municipal Bonds 2.150% 2.203% 07/01/2019 12/01/2026 40,000.00 39,494.80 40,150.64 (655.84) 150.64 N/A Cetera Investment Services Municipal Bonds 1.664% 1.150% 08/27/2020 09/01/2026 225,000.00 222,455.25 231,696.00 (9,240.75) 6,696.00 N/A Cetera Investment Services Municipal Bonds 2.375% 1.816% 09/04/2019 12/01/2026 90,000.00 92,021.40 93,395.70 (1,374.30) 3,395.70 N/A Cetera Investment Services Municipal Bonds 2.350% 2.191 % 07/01/2019 12/01/2026 500,000.00 500,760.00 505,385.00 (4,625.00) 5,385.00 N/A Cetera Investment Services Municipal Bonds 3.000% 1.991 % 08/19/2019 02/01/2027 50,000.00 52,876.50 53,551.00 (674.50) 3,551.00 N/A Cetera Investment Services Municipal Bonds 3.150% 2.034% 08/19/2019 03/15/2027 100,000.00 105,311.00 109,138.50 (3,827.50) 9,138.50 N/A Cetera Investment Services Municipal Bonds 3.332% 3.120% 04/18/2019 04/15/2027 500,000.00 535,330.00 507,783.94 27,546.06 7,783.94 N/A Cetera Investment Services Municipal Bonds 3.865% 2.470% 08/19/2019 05/01/2027 55,000.00 58,941.85 60,986.48 (2,044.63) 5,986.48 05/01/2025 Cetera Investment Services Municipal Bonds 3.553% 2.289% 08/19/2019 05/01/2027 55,000.00 57,972.20 60,468.04 (2,495.84) 5,468.04 05/01/2026 Cetera Investment Services Municipal Bonds 3.230% 1.828% 08/19/2019 05/15/2027 145,000.00 153,933.45 160,827.31 (6,893.86) 15,827.31 N/A Cetera Investment Services Municipal Bonds 1.925% 1.719% 11/23/2021 06/01/2027 310,000.00 303,592.30 313,447.46 (9,855.16) 3,447.46 Make -Whole Call Cetera Investment Services Municipal Bonds 1.861 % 1.254% 06/07/2021 07/01/2027 410,000.00 403,226.80 412,336.71 (9,109.91) 2,336.71 N/A Cetera Investment Services Municipal Bonds 3.000% 3.101 % 05/18/2020 09/01/2027 65,000.00 67,991.95 69,180.58 (1,188.63) 4,180.58 09/01/2025 Cetera Investment Services Municipal Bonds 2.817% 2.817% 09/25/2019 10/01/2027 35,000.00 30,141.65 27,969.55 2,172.10 (7,030.45) 05/01/2025 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 Cetera Investment Services Municipal Bonds 1.415% 1.793% 11/23/2021 03/01/2028 100,000.00 95,412.00 98,088.31 (2,676.31) (1,911.69) N/A Cetera Investment Services Municipal Bonds 3.270 % 2.141 % 08/19/2019 03/15/2028 155,000.00 163,985.35 170,805.09 (6,819.74) 15,805.09 09/15/2027 Cetera Investment Services Municipal Bonds 2.974% 2.574% 11/07/2019 04/01/2028 75,000.00 75,897.00 77,253.00 (1,356.00) 2,253.00 N/A Cetera Investment Services Municipal Bonds 2.125% 1.904% 11/23/2021 06/01/2028 110,000.00 107,649.30 111,525.06 (3,875.76) 1,525.06 N/A Cetera Investment Services Municipal Bonds 2.547% 1.240% 08/10/2021 07/01/2028 125,000.00 128,588.75 136,101.16 (7,512.41) 11,101.16 N/A Cetera Investment Services Municipal Bonds 3.140% 2.004% 08/19/2019 08/01/2028 500,000.00 527,625.00 547,105.00 (19,480.00) 47,105.00 08/01/2027 Cetera Investment Services Municipal Bonds 3.000% 2.199% 05/19/2020 08/15/2028 90,000.00 93,876.30 95,401.80 (1,525.50) 5,401.80 08/15/2025 Cetera Investment Services Municipal Bonds 1.692% 1.813% 11/24/2021 10/01/2028 180,000.00 172,945.80 179,188.74 (6,242.94) (811.26) N/A Cetera Investment Services Municipal Bonds 3.000% 1.942% 08/19/2019 06/01/2029 115,000.00 122,346.20 125,961.80 (3,615.60) 10,961.80 N/A Cetera Investment Services Municipal Bonds 4.000% 3.214% 03/22/2021 09/01/2031 60,000.00 63,501.00 64,292.00 (791.00) 4,292.00 09/01/2024 Cetera Investment Services Municipal Bonds 3.500% 2.699% 11/23/2021 02/01/2033 50,000.00 51,726.00 54,390.44 (2,664.44) 4,390.44 02/01/2025 Cetera Investment Services Municipal Bonds 3.250% 2.655% 08/19/2019 06/01/2029 75,000.00 78,491.25 79,860.31 (1,369.06) 4,860.31 02/01/2025 Cetera Investment Services Municipal Bonds 3.125% 2.303% 11/23/2021 10/01/2034 50,000.00 52,788.00 54,773.69 (1,985.69) 4,773.69 04/01/2027 Cetera Investment Services Municipal Bonds 3.125% 2.456% 11/23/2021 02/01/2035 50,000.00 52,483.00 54,236.11 (1,753.11) 4,236.11 02/01/2026 Broker Total 70.6% 9,419,000.00 9,694,995.84 9,780,651.20 (86,621.25) 361,651.20 TOTAL INVESTMENTS 100.0% ELECTRIC DIVISION Operating Revenue January 2022 CLASS AMOUNT KWH /KWH Street Lights $29.92 549 $0.05450 Electric Residential Service $505,667.40 4,791,076 $0.10554 All Electric Residential Service $39,339.69 420,577 $0.09354 Electric Small General Service $171,946.62 1,680,183 $0.10234 Electric Large General Service $601,578.48 6,721,270 $0.08950 Electric Large Industrial Service $702,756.52 9,174,000 $0.07660 Total $2,021,318.63 22,787,655 $0.08870 Power Adjustment $0.00464 Rate Without Power Adjustment $0.08406 Electric Division Year -to -Date M2022$A--t 02021$A--t ■2022KWH110 02021 KWH110 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 Street Lights Residential All Elec. Small Gen. Large Gen. Large For Resale Total Resid. Srv. Srv. Industrial NOTE: Sales for resale includes capacity sales, market sales and Transalta sales. NATURAL GAS DIVISION Operating Revenue JANUARY 2022 CLASS AMOUNT MCF /$ MCF Residential $771,177.95 92,433 $8.34310 Commercial $562,437.59 65,832 $8.54353 Large Industrial $35,720.62 4,301 $8.30519 Large Industrial Contracts $682,717.87 112,089 $6.09086 Total $2,052,054.03 274,655 $7.47139 Fuel Adjustment $0.00000 Rate Without Fuel Adjustment $7.47139 Natural Gas Division Year -to -Date ® 2022 $ Amount 0 2021 $ Amouni ■ 2022 MCF 132021 MCF 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 Gas Residential Gas Commercial Large Industrial Large Industrial Total Contracts Load Duration Curve: Analysis of 26MW Base Load Contract 2013 2014 2015 2016 2017 2018 2019 2020 2021 290045 296051 302101 295777 290586 292490 283707 281503 292952 219000 219000 219000 219600 219000 219000 219000 219600 219000 75.5% 74.0% 72.5% 74.2% 75.4% 74.9% 77.2% 78.0% 74.8% 734 340 185 322 302 346 588 540 362 8.4% 3.9% 2.1 % 3.7% 3.4% 3.9% 6.7% 6.1 % 4.1 % 1819 641 317 581 560 650 1337 1156 929 0.8% 0.3% 0.1 % 0.3% 0.3% 0.3% 0.6% 0.5% 0.4% SOURCE MWh MIRES 219,000 75% MISO 45,353 15% HUC GENERATION 28,955 10% Total system load (MWh) Total base load energy purchased (MWh) % of system load provided by base load contract Number of hours system load was less than 25 MW Percentage of time system load was less than 25 MW Base load MWh resold into MISO (system load was less than 25 MW). % of base load energy resold (system load was less than 25 MW). HUTCHINSON UTILITIES COMMISSION ,c�,« Board Action Form 'AlUTlt Agenda Item: Review Policies Jeremv Carter Review Policies BACKGROUND/EXPLANATION OFAGENDA ITEM: es 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: Section 2 of Exempt Handbook Section 2 of Non -Exempt Handbook BOARD ACTION REQUESTED: None EXEMPT SECTION 2 — ADMINISTRATION OF PERSONNEL POLICIES The Commission approves personnel policies intending uniform administration of personnel matters of the Utilities. The Commission may supplement, amend and/or rescind the policies to assure that they will remain practical, useful and current. In approving personnel policies, the Commission has made every effort to be as reasonable and practical as possible. Final responsibility for the enforcement of the policies shall rest with the Commission. The Commission however, has delegated to the General Manager the responsibility and authority for the enforcement of all personnel policies. The General Manager, in turn, delegates certain responsibilities and authority to the Staff as deemed advisable in order to carry out the personnel policies. The General Manager, however, remains accountable to the Commission. If the Commission has not clearly delegated its authority in a certain manner, the Commission retains authority to determine the appropriate action. These personnel policies govern all Utilities employees and apply to all cases except where a policy contained herein conflicts with a Union Contract, or other employment contract, or past practice, in which case the Union Contract, or other employment contract, or past practice shall govern. SAVINGS CLAUSE If any provision of this Handbook is declared by proper legislative, administrative or judicial authority to be unlawful, unenforceable or not in accordance with applicable Civil Service rules, or law, all other provisions of this Handbook shall remain in full force and effect for the duration of this Handbook. EQUAL EMPLOYMENT OPPORTUNITY HUC is committed to providing equal opportunity in all areas of employment, including, but not limited to recruitment, hiring, demotion, promotion, transfer, recruitment, selection, lay-off, disciplinary action, termination, compensation and selection for training. In accordance with Minnesota State Statute 363A, HUC will not discriminate against any employee or job applicant on the basis of race, color, creed, religion, national origin, ancestry, sex, sexual orientation, disability, age, marital status, genetic information, status with regard to public assistance, veteran status, familial status, or local human rights commission activity. HIRING It is the Commission's policy to hire qualified applicants through internal employee promotion and external recruitment if appropriate. The General Manager has the authority to hire all employees and must approve all hiring recommendations. Final interviews for the General Manager position will be conducted by the Commissioner Board with the assistance of the Human Resources Director. Final interviews for Director positions will be conducted by the General Manager, President of the Commission and Human Resources Director. PROBATIONARY PERIOD UPON HIRING A newly hired exempt employee shall serve a nine (9) month probationary period during which the employee shall have the opportunity to demonstrate abilities and work performance. During this qualifying period, the Director, Manager or Supervisor should discuss with the employee, the employee's progress in becoming fully acquainted with the job and co-workers. The General Manager can terminate a probationary employee's employment without notice and without cause at any time during the probationary period. The General Manager may choose to extend an employee's probation period up to a maximum of three months. New full-time employees are required to sign the acknowledgement in Appendix B when they begin employment. TEMPORARY EMPLOYEES Temporary employees are required to sign the acknowledgement in Appendix C when they begin employment. The General Manager must approve employment of a temporary worker for longer than 14 consecutive weeks. The responsible Director or Manager must inform the General Manager of the desire to employ a temporary worker longer than 14 weeks. PROMOTIONS AND TRANSFERS HUC encourages individual advancement by providing opportunities for promotion and transfer as positions become available. Job vacancies shall be posted ten (10) working days. Employees desiring to be considered for the position must provide a letter of interest to the appropriate staff person by the deadline stated on the posting. All promoted and transferred employees shall serve a six (6) month trial period during which time the promoted or transferred employee may be placed back in the employee's previous job classification if a position is available and at the sole discretion of the Employer, without loss of seniority. We encourage employees to discuss their career plans and goals with their Director or Manager. LAYOFFS HUC retains its right to eliminate positions within the organization if the Commission deems it appropriate to do so. If a layoff occurs, RUC will provide four weeks' notice to affected employees. Layoffs will be based on skill, knowledge, utility needs and also employee's seniority. VOLUNTARY LEAVE OF ABSENCE HUC may request employees to voluntarily take a leave of absence without pay for a specified period of time. EMPLOYMENT OF RELATIVES No applicant or employee shall receive preferential consideration because of his/her relationship to an HUC employee, a Commission member, a Hutchinson City Council member or other City employees and officials. Any HUC employee who extends such preferential treatment is subject to discipline. Immediate family members may be employed by HUC provided there is no direct report relationship. No member of the immediate family of the General Manager or of a current member of the Commission may be employed by HUC. A former Commission member may not be hired as an employee of HUC for two years after the end of the Commissioner's term in office. MEMBERSHIP/DUES/CONVENTIONS Employees are encouraged to join and participate in professional and technical associations, which are expected to enhance job performance. HUC will pay the association dues if membership relates directly to an employee's job with HUC. The appropriate Staff Personnel must approve payment of membership dues. The General Manager must approve attendance at association meetings and/or conventions. Attendance shall be limited to one major conference per year. This limitation does not apply to workshops, seminars and courses, which HUC directs employees to attend. HUC will pay the attendance fee for pre -approved meetings and expenses incurred. DATA PRACTICES ADVISORY Employee records are maintained by Human Resources (or the Administrative Coordinator). Personnel data is retained in personnel files, finance files, and benefit/medical files. Information is used to administer employee salary and benefit programs, process payroll, complete state and federal reports, document employee performance, etc. Employees have the right to know what data is retained, where it is kept, and how it is used. All employee data will be received, retained, and disseminated according to the Minnesota Government Data Practices Act. Media Requests: All HUC employees have a responsibility to help communicate accurate and timely information to the public in a professional manner. Requests for private data or information outside of the scope of an individual's job duties should be routed to the appropriate department. Any employee who identifies a mistake in reporting should bring the error to the General Manager or other appropriate staff. Regardless of whether the communication is in the employee's official utilities role or in a personal capacity, employees must comply with all laws related to trademark, copyright, software use, etc. With the exception of routine events and basic information that is readily available to the public, all requests for interviews or information from the media are to be routed through the General Manager. No HUC employee is authorized to speak on behalf of HUC without prior authorization from the General Manager or his designee. Media requests include anything intended to be published or viewable to others in some form such as television, radio, newspapers, newsletters, social media sites, and web sites. When responding to media requests, employees should follow these steps: 1. If the request is for routine or public information (such as a meeting time or agenda) provide the information and notify the General Manager of the request. 2. If the request is regarding information about HUC personnel, potential litigation, controversial issues, an opinion on a HUC matter, or if an employee is unsure if the request is a "routine" question, forward the request to the General Manager. An appropriate response would be "I'm sorry, I don't have the full information regarding that issue. Let me take some basic information and submit your request to the appropriate person who will get back to you as soon as he/she can." Then ask the media representative's name, questions, deadline and contact information. All news releases concerning HUC personnel will be the responsibility of the General Manager. When/if the General Manager authorizes a staff person to communicate on behalf of HUC in interviews, publications, news releases, on social media sites, and related communications, employees must: ✓ Identify themselves as representing HUC. Account names on social media sites must be clearly connected to HUC and approved by the General Manager. ✓ All information must be respectful, professional and truthful. Corrections must be issued when needed. ✓ Personal opinions generally don't belong in official statements. One exception is communications related to promoting a service. ✓ Employees need to notify the General Manager if they will be using their personal technology (cell phones, home computer, cameras, etc.) for HUC business. Employees should be aware that the data transmitted or stored may be subject to the Data Practices Act. It is important for HUC employees to remember that the personal communications of employees may reflect on HUC, especially if employees are commenting on HUC business. The following guidelines apply to personal communications including various forms such as social media (Facebook, Twitter, blogs, YouTube, etc.), letters to the editor of newspapers, and personal endorsements. ✓ Remember that what you write is public, and will be so for a long time. It may also be spread to large audiences. Use common sense when using email or social media sites. It is a good idea to refrain from sending or posting information that you would not want your boss or other employees to read, or that you would be embarrassed to see in the newspaper. ✓ HUC expects its employees to be truthful, courteous and respectful towards supervisors, co-workers, citizens, customers and other persons associated with HUC. Do not engage in name-calling or personal attacks. ✓ If you publicize something related to HUC business, identify yourself and use a disclaimer such as, "I am an employee of HUC. However, these are my own opinions and do not represent those of HUC." ✓ HUC resources, working time, or official positions cannot be used for personal profit or business interests, or to participate in personal political activity. ✓ Personal social media account name or email names should not be tied to HUC. COMPLAINT/GRIEVANCE PROCEDURE It is the Commission's policy to provide an equitable process which employees may use to advance complaints and grievances. An employee may grieve any alleged violation of a written or verbal policy or procedure, disciplinary action other than an oral reprimand, or unsafe practice. Prior to initiating a grievance, an employee must discuss the complaint with the immediate Supervisor. If the complaint cannot be resolved informally through such discussion with the Director, Manager or Supervisor, the employee may choose to file a written grievance. The grievance must be filed with the Human Resources Director within ten (10) working days after the incident -giving rise to the grievance. The Human Resources Director shall attempt to resolve the grievance and shall provide the employee a written response no later than five (5) working days following receipt of the grievance. If the employee is dissatisfied with the Human Resource Director's response, the employee may file the grievance with the General Manager within five (5) days of the Human Resource Director's response. The General Manager shall attempt to resolve the complaint or grievance and shall provide the employee a written response not later than five (5) days following the receipt of the complaint. If dissatisfied with the General Manager's response, the employee may request a hearing on the grievance before the Hutchinson Utilities Commission. The Hutchinson Utilities Commission may choose to appoint an independent hearing officer to hear the grievance. An employee presenting a complaint or grievance shall not be subject to retaliation or reprisal. EMPLOYEE CONDUCT All HUC employees are expected to conduct themselves in a manner that creates a work environment enabling employees to work effectively and to promote positive customer relations. HUC employees are required to adhere to the following standards of conduct while on the job. • To behave in a courteous, business -like manner and to comply with HUC policies and work rules. • Refrain from any and all action, which may be detrimental to the safety or work of other employees or to the goals of HUC. • To communicate openly and honestly with management, other employees, and the public. • To share responsibility for personal development and growth. • To continually strive for excellence in work product and habits. DISCIPLINE In general, HUC employees shall be subject to disciplinary action for failing to fulfill their duties and responsibilities, including observance of work rules approved by the Commission. It is the policy of the Commission to administer discipline fairly, without discrimination, and for just cause. The employee may use the grievance procedure with respect to any disciplinary action believed to be unjust or disproportionate to the alleged offense. The General Manager, Director or Manager shall investigate any allegation on which disciplinary action might be based before disciplinary action is taken. The Commission supports the concept of progressive discipline but expressly reserves the right to impose various levels of discipline depending on the nature of the offense. Staff Personnel may impose oral and written reprimands. Only the General Manager may impose a suspension without pay, letter in lieu of suspension, demotion, or discharge. Notices of oral reprimand, written reprimand, suspension without pay, demotion, or discharge will be documented in written form and will state the reason(s) for the action taken. The employee shall be provided with a copy of each such notice and a copy shall be retained in the employee's personnel file. The following are examples of disciplinary action but do not constitute an exclusive list of possibilities and may be taken in any order or not used at all. These examples and their descriptions are not intended to create a contract or obligation on management's part. A Oral reprimand. An oral notice advising an employee of inappropriate conduct and expected corrective action. B Written reprimand. A written notice advising an employee of inappropriate conduct. A written reprimand should describe in detail the behavior to be corrected, describe past actions taken by the supervisor to correct the problem, give direction and orders for the future including timetables and goals for improvement when appropriate, and specify consequences of repeating the inappropriate behavior. The employee will be given a copy of the reprimand and sign the original acknowledging receipt of the reprimand. The signature of the employee does not signify agreement with the reprimand. The reprimand will be placed in the employee's personnel file. C Prior to the suspension or as soon after as possible, the employee will be notified in writing of the reason for the suspension and its length. There are two forms of suspension: suspension as discipline and suspension pending investigation. An employee receiving a suspension as discipline may not be paid, may not accrue vacation, holiday or sick leave benefits during the suspension, and may not use paid time while suspended. An employee suspended pending investigation of allegations will have a copy of each written statement placed in the personnel file and will be paid during the investigation. If the allegations prove false, the statement will be removed. An employee placed on investigatory suspension should be notified as quickly as reasonably possible of the action taken regarding employment. D Demotion. Placement of an employee in a lower level position. E Discharge. The General Manager may discharge any employee, but if the employee has completed the probationary period, a dismissal will be made only for just cause. A dismissed employee will be notified by the previous posting of a summary of Minnesota Statute Sections 181.931 to 181.935 or by furnishing the terminated employee a copy of those statutes at termination that the employee has a right to make a written request for HUC reason for termination. If requested, HUC will provide reasons, in writing, within five working days. This notice will also contain a statement indicating that the employee may respond to the charges both orally and in writing and may appear personally before the official having authority to make or recommend the final decision. An adequate reason or "just cause" for a disciplinary action will include, but not be limited to, evidence of any of the following: A Incompetence or inefficiency in the performance of duties. B Negligence or carelessness in the performance of duty, such as in the handling or control of municipal property, equipment, or funds and failure to observe safety rules and regulations. C Offensive or inappropriate conduct or language toward Utilities employees or other persons. D Failure to obey any lawful and reasonable direction given by an employee's supervisor or the appointing authority. E Acceptance of a fee, gift, or other valuable item or benefit in the course of, or as a result of, the employee's work. This limitation is not intended to prohibit the acceptance of articles of negligible value, which are distributed generally, or to prohibit employees from accepting social courtesies, which promote good public relations. This prohibition is intended to prevent or discourage relationships, which may be construed as evidence of favoritism, coercion, unfair advantage, or collusion. Employees may accept food and refreshments in such instances as a luncheon, dinner meeting, or inspection tour in conjunction with HUC business. F Conviction of a crime, which affects or relates to the performance of assigned duties. G Using, threatening or attempting to use, political influence or unethical pressure to influence a decision on a promotion, transfer, leave of absence, increased compensation, other benefit, or any other matter in which the employee has an interest. Unethical pressure includes offers of gifts or other special benefits, coercion, collusion, threats of blackmail, requests for favoritism, and use of unfair advantage. H Absence from work without prior approval in accordance with this policy. I During assigned work schedules, (1) consuming or being under the influence of alcoholic beverages, (2) having the odor of an alcoholic beverage on the breath, or (3) consuming or being under the influence of a controlled substance, other than one prescribed by a physician, which does not impair the ability to perform assigned duties. J Tardiness or abuse of sick leave privileges. K Theft of public property, pilferage, or other unauthorized use or taking of property. L Sexual harassment. M Discrimination against or harassment of any HUC employee at any time, or any other person during work hours, based on race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, veterans status, disability, or age. N Performance of personal or other non-HUC work related matters during work hours. O Violation of the HUC's equal employment plan. P Engaging in a conflict of interest or performing public duties in a situation where the employee has a conflict of interest. Q Violations of the provisions of this Handbook and/or policies. R Horseplay, loafing or sleeping on the job. S Proven dishonesty in the performance of duties. T Acts or threats of physical violence directed toward HUC employees. U Unauthorized use or release of confidential, sensitive or privileged information. V As a supervisor, knowingly permitting another employee to violate this policy or other work rules. W Acting or failing to act in a manner not otherwise specified that tends to lower discipline or morale among HUC employees, brings or tends to bring discredit to the HUC, its employees, or that adversely affects the prompt, courteous and efficient provisions of public services. Freedom of speech protected by the First Amendment shall not be a basis for discipline. X Unauthorized possession or use of firearms or hazardous materials on HUC time or property. Y Refusal, during working hours, to submit to a Breathalyzer or other drug test required by law. CONFLICT OF INTEREST Employees must notify their Director or Manager of any direct or indirect financial interest they have in any contract with HUC, any interest they have in a contractor supplying HUC, or any such interest they may have with any entity competing with HUC, and all such notifications shall be forwarded to the General Manager. Employees who do not report to a Director or Manager shall directly notify the General Manager. Any employee with such a financial interest may not work on any HUC project or make any decision concerning an HUC project involving the employee's outside financial interest, unless the interest has been disclosed, and deemed acceptable by HUC management. INTELLECTUAL PROPERTY Assignment: All inventions that are: (a) developed using equipment, supplies, facilities or trade secrets of HUC; or (b) result from work performed by an employee of HUC; or (c) relate to the HUC's current or anticipated business and business models, will be the HUC's sole and exclusive property and are hereby assigned by the employee to HUC. If necessary, the employee will assist HUC in the prosecution and issuance of patents, copyrights and other proprietary rights necessary to protect inventions that are developed. Disclosure: While employed by HUC, the employee will promptly inform HUC of the full details of all inventions, discoveries, improvements and innovations, whether or not patentable, copyrightable or otherwise protectable, that the employee conceives, completes or reduces to practice (whether jointly or with others) and which: (a) relate to HUC's present or prospective business, or actual or anticipated business and business models; or (b) result from any work that the employee does using any equipment, facilities, materials, trade secrets or personnel of HUC; or (c) result from, or are suggested by, any work that the employee may do for HUC. The employee will inform HUC within 30 days of the adoption of this policy of all previous inventions, improvements or discoveries actually made or copyright registration or patent applications filed prior to the incorporation of this policy. Inventions, improvements or discoveries not made known to HUC within 30 days of the adoption of this policy shall be deemed to have been made while this policy was in effect. Confidentiality: From time to time, HUC may develop, and employees may have exposure to, formulas, programs, devices, techniques or processes that have been designated by HUC as confidential or proprietary information of HUC. The employee shall not directly or indirectly disclose, furnish, or make accessible to any person or other entity any confidential or proprietary information of HUC that the employee developed or obtained while the employee was employed by HUC. As required by Minnesota law, this policy does not apply to an invention for which no equipment, supplies, facility or trade secret information of HUC was used and which was developed entirely on the employee's own time and (1) does not relate (a) directly to the business of HUC or (b) to HUC's actual or demonstrably anticipated research or development, or (2) which does not result from any work performed by the employee for HUC. OTHER EMPLOYMENT An employee's position at HUC must take precedence over any other job an employee holds. Employees must inform their Director or Manager of any work they perform for profit outside of HUC's position to ensure there is no conflict of interest between the HUC job and the outside employment, and all such notifications shall be forwarded to the General Manager. Employees who do not report to a Director or Manager shall directly inform the General Manager. Also, employees are expected to be mentally alert and physically able to perform their Utility jobs. Employees may not work on their outside employment while on duty with HUC nor may any HUC property or equipment be used to conduct such business at any time. LICENSE REQUIREMENTS FOR UTILITY VEHICLE OPERATION Prior to hire date as an WC employee, the candidate's driving record is evaluated and must be approved. This is a condition of employment if operation of a vehicle is an essential part of an employee's job. An employee whose job requires operating a motor vehicle must possess a valid Minnesota Driver's License with necessary endorsements in order to conduct WC business. If an employee's driver's license is suspended, revoked, or cancelled during employment with WC, the employee must immediately inform the employee's Director, Manager or Supervisor who must inform the General Manager. The General Manager shall take appropriate action up to and including discharge. SMOKING The HUC observes and supports the Minnesota Clean Indoor Air Act. All HUC buildings and vehicles, in their entirety, shall be designated as tobacco free, meaning that smoking in any form (through the use of tobacco products (pipes, cigars and cigarettes) or "vaping" with e-cigarettes is prohibited while in a HUC facility or vehicle. Smoking of any kind, including pipes, cigars, cigarettes, vaping with e-cigarettes and the use of chewing tobacco is prohibited for employees while on duty. Employees 18 and over are allowed to smoke only during their breaks and lunch, and only in areas designated for that purpose. Per City of Hutchinson ordinance, smoking is prohibited in public places and places of work and within 15 feet of entrances, exists, open windows and ventilation intakes of public places and places of work. ALCOHOL OR DRUGS Possession or consumption of alcohol or controlled substances is prohibited while on -duty or on/in any HUC equipment or property. An employee who reports to work incapacitated or whose performance is impaired through the use of alcohol or controlled substances is subject to disciplinary action up to and including discharge. All HUC employees required to maintain a Commercial Driver's License (CDL), and/or perform a maintenance or emergency function on a natural gas pipeline regulated by 49 CFR Parts 192, 193 or 195 must comply with the Total Compliance Solutions Drug and Alcohol Plan as administered by HUC. VIOLENCE IN THE WORKPLACE HUC strives to ensure a healthy and productive working environment. In that regard, safety and security are of the utmost importance. HUC will enforce zero tolerance for any acts of physical assault or threats of bodily harm in the performance of work duties, wherever those duties are performed. Policy on Violence HUC views aggressive and/or violent behavior as disruptive and contrary to the development and maintenance of a safe, productive and supportive work environment. Such behavior is not tolerated. Employees who exhibit such behavior will be held accountable under the policy and work rules, as well as local, state, and federal law. All threats and acts of aggression or violent behavior should be taken seriously and addressed immediately. Such threats or acts include, but are not limited to: • Harming or threatening to harm any employee or visitor; • Damaging or threatening to damage property or the property of any employee or visitor; • Unlawfully possessing a firearm, ammunition, weapon or incendiary device on HUC property, vehicles, construction sites or while attending HUC business -related activities off site; • Engaging in stalking behavior of any employee. Accountability All personnel are responsible for notifying their immediate supervisor, or in the absence of their supervisor, another member of the management staff of any threats that they have witnessed, received, or have been told that another person has witnessed or received. Even without an actual threat, personnel should also report any behavior they have witnessed which they regard as threatening or violent, when that behavior is job related or might be carried out on a public site, or is connected to municipal employment. Employees are responsible for making this report regardless of the relationship between the aggressor and the individual to whom the threat or threatening behavior was directed. Directive Any person who makes substantial threats, exhibits threatening behavior, or engages in violent acts against employees, visitors, guests, or other individuals while on HUC property shall be removed from the premises as quickly as safety permits and shall remain off HUC premises pending the outcome of an investigation. Law enforcement should be utilized to remove individuals who are perceived as a threat. HUC will initiate an appropriate response which may include, but is not limited to, suspension and/or termination of any business relationship, reassignment of job duties, suspension or termination of employment and/or criminal prosecution of the person or persons involved. Employees and supervisors should work together to identify and report situations or locations where there is a potential for physical assault or threat of bodily harm. Employees should record specific incidents, behaviors or conversations that may indicate a potential for violence. Documentation should be forwarded to their Manager/Director. In instances where their supervisor is the source of potential violence, documentation should be forwarded to the next level of management with a copy to Human Resources. Supervisors must carefully review and assess information provided by employees or other sources. Appropriate precautions should be taken based on the specific situation. For example: If a problem situation or location is identified, it should be communicated to other employees who are likely to become involved in the situation or come in contact with the location. Individuals applying for a restraining order must provide their supervisor and Human Resources with a copy of the petition used to seek the order, and a copy of any temporary and permanent protective restraining order which is subsequently granted. Human Resources will monitor and evaluate the violence reports on an ongoing basis and will submit program reports to the General Manager when requested. OFFENSIVE BEHAVIOR/SEXUAL HARASSMENT It is HUC's policy to maintain a work environment free from offensive behavior and sexual harassment. Offensive behavior may include such actions as: rudeness, angry outbursts, inappropriate humor, vulgar obscenities, name calling, disrespectful language, or any other behavior regarded as offensive to a reasonable person. A violation of this policy is subject to discipline up to and including discharge. One specific kind of illegal behavior is sexual harassment. Sexual harassment includes unwelcome sexual advances, requests for sexual favors, sexually motivated physical conduct or other verbal or physical conduct or communication of a sexual nature when: 1. submission to that conduct or communication is made a term or condition of obtaining employment; or 2. submission to or rejection of that conduct or communication by an individual is used as a factor in a decision affecting that individual's employment; or 3. that conduct or communication has the purpose or effect of substantially interfering with an individual's employment or creating an intimidating, hostile, or offensive employment environment. Examples of conduct that violate this policy include, but are not limited to: • Repeated offensive sexual flirtations, unwelcome advances, propositions or invitations; or • Unwelcome repeated comments, jokes, displays, or suggestions of a sexual nature; or • Objectionable physical contact, including touching • In summary, sexual harassment is the unwanted, unwelcome and repeated action of an individual against another individual, using sexual overtones as a means of creating stress. Any employee who feels he/she is being subjected to offensive or discriminatory behavior of any kind or employees who are aware of such behavior is/are encouraged to express their objection to the behavior and should also immediately report the behavior to their immediate Supervisor, Department Manager or Director (if not the immediate supervisor), the Human Resources Director, or the General Manager. In addition, the employee may also file a complaint with the Minnesota Department of Human Rights and the EEOC. A person must file a complaint with the Minnesota Department of Human Rights within one year of the incident and file a complaint with the EEOC within 300 days of the incident. Staff Personnel who receives an offensive behavior or discrimination complaint shall inform the General Manager and Human Resources of the complaint as soon as possible. The General Manager must ensure an appropriate and prompt investigation of the complaint. If the investigation substantiates the complaint, HUC will take appropriate corrective action. Strict confidentiality is not possible in all cases of sexual harassment as the accused has the right to answer charges made against them; particularly if discipline is a possible outcome. Reasonable efforts will be made to respect the confidentiality of the individuals involved, to the extent possible. Any employee who makes a false complaint or provides false information during an investigation may be subject to disciplinary action, up to and including termination. Retaliation against any person who files a complaint or participates in an investigation is expressly prohibited. Retaliation includes, but is not limited to, any form of intimidation, reprisal or harassment. Any individual who retaliates against a person who testifies, assists, or participates in an investigation may be subject to disciplinary action up to and including termination. RETIREMENT Any employee who elects to retire shall give the Employer sixty (60) days' written notice of date that employee intends to retire. RESIGNATION Employees leaving employment with HUC in good standing will be paid any accrued unused vacation. To leave employment in good standing, an employee should provide written notice of resignation to Supervisor or Manager at least 10 working days prior to the resignation effective date. The General Manager may waive this requirement for good cause. A terminating employee must also return all HUC property, and equipment including keys, security devices, clothing and small hand tools provided by HUC. SOLICITATION ON UTILITY PREMISES Salespersons offering merchandise not related to HUC business are prohibited from soliciting during normal business hours. Employees are discouraged from soliciting other employees. Brochures and/or pamphlets are allowed to be put out in the breakroom for voluntary participation. Employees shall not provide another employee's contact information to a salesperson without the employee's consent. EMPLOYEE GIFTS Employees are not required to make a contribution for a gift or grant a favor for another employee. FLOWERS In the event of the death of a full-time or part-time employee or employee's immediate family, flowers/plant will be sent at HUC expense without delay to the appropriate funeral home. Information needed: Funeral Home Address Date to Send Flowers Similar consideration may be given, at the discretion of the General Manager, Directors, or Managers, for retirees, consultants, Commission members or others who provide significant service to HUC. PETTY CASH Petry cash funds are kept with the Accountant. The petty cash fund will be used to reimburse payment up to $25.00. Any expenditure over $25.00 will be reimbursed by check. Itemized receipts mustbe attached to a complete petty cash slip whenever possible. An employee may obtain an advance of petty cash by completing a petty cash slip and reconciling the advance with the actual amount as soon as possible. Non -Exempt SECTION 2 — ADMINISTRATION OF PERSONNEL POLICIES The Commission approves personnel policies intending uniform administration of personnel matters of the Utilities. The Commission may supplement, amend and/or rescind the policies to assure that they will remain practical, useful and current. In approving personnel policies, the Commission has made every effort to be as reasonable and practical as possible. Final responsibility for the enforcement of the policies shall rest with the Commission. The Commission however, has delegated to the General Manager the responsibility and authority for the enforcement of all personnel policies. The General Manager, in turn, delegates certain responsibilities and authority to the Staff as deemed advisable in order to carry out the personnel policies. The General Manager, however, remains accountable to the Commission. If the Commission has not clearly delegated its authority in a certain manner, the Commission retains authority to determine the appropriate action. These personnel policies govern all Utilities employees and apply to all cases except where a policy contained herein conflicts with a Union Contract, or other employment contract, or past practice, in which case the Union Contract, or other employment contract, or past practice, shall govern. SAVINGS CLAUSE If any provision of this Handbook is declared by proper legislative, administrative or judicial authority to be unlawful, unenforceable or not in accordance with applicable Civil Service rules, or law, all other provisions of this Handbook shall remain in full force and effect for the duration of this Handbook. EQUAL EMPLOYMENT OPPORTUNITY HUC is committed to providing equal opportunity in all areas of employment, including, but not limited to recruitment, hiring, demotion, promotion, transfer, recruitment, selection, lay-off, disciplinary action, termination, compensation and selection for training. In accordance with Minnesota State Statute 363A, HUC will not discriminate against any employee or job applicant on the basis of race, color, creed, religion, national origin, ancestry, sex, sexual orientation, disability, age, marital status, genetic information, status with regard to public assistance, veteran status, familial status, or local human rights commission activity. HIRING It is the Commission's policy to hire qualified applicants through internal employee promotion and external recruitment if appropriate. The General Manager has the authority to hire all employees and must approve all hiring recommendations. Final interviews for the General Manager position will be conducted by the Commissioner Board with the assistance of the Human Resources Director. Final interviews for Director positions will be conducted by the General Manager, President of the Commission and Human Resources Director. PROBATIONARY PERIOD UPON HIRING A newly hired non-exempt employee shall serve a six (6) month probationary period during which the employee shall have the opportunity to demonstrate abilities and work performance. During this qualifying period, the Director, Manager or Supervisor should discuss with the employee, the employee's progress in becoming fully acquainted with the job and co-workers. The General Manager can terminate a probationary employee's employment without notice and without cause at any time during the probationary period. The General Manager may choose to extend an employee's probation period up to a maximum of three months. New full-time employees are required to sign the acknowledgement in Appendix B when they begin employment. TEMPORARY EMPLOYEES Temporary employees are required to sign the acknowledgement in Appendix C when they begin employment. The General Manager must approve employment of a temporary worker for longer than 14 consecutive weeks. The responsible Director or Manager must inform the General Manager of the desire to employ a temporary worker longer than 14 weeks. PROMOTIONS AND TRANSFERS HUC encourages individual advancement by providing opportunities for promotion and transfer as positions become available. Job vacancies shall be posted ten (10) working days. Employees desiring to be considered for the position must provide a letter of interest to the appropriate staff person by the deadline stated on the posting. All promoted and transferred employees shall serve a six (6) month trial period during which time the promoted or transferred employee may be placed back in the employee's previous job classification if a position is available and at the sole discretion of the Employer, without loss of seniority. We encourage employees to discuss their career plans and goals with their Director or Manager. LAYOFFS HUC retains its right to eliminate positions within the organization if the Commission deems it appropriate to do so. If a layoff occurs, HUC will provide four weeks' notice to affected employees. Layoffs will be based on the Utility's skill and knowledge needs and also employee's seniority. VOLUNTARY LEAVE OF ABSENCE HUC may request employees to voluntarily take a leave of absence without pay for a specified period of time. EMPLOYMENT OF RELATIVES No applicant or employee shall receive preferential consideration because of his/her relationship to an HUC employee, a Commission member, a Hutchinson City Council member or other City employees and officials. Any HUC employee who extends such preferential treatment is subject to discipline. Immediate family members may be employed by HUC provided there is no direct report relationship. No member of the immediate family of the General Manager or of a current member of the Commission may be employed by HUC. A former Commission member may not be hired as an employee of HUC for two years after the end of the Commissioner's term in office. DATA PRACTICES ADVISORY Employee records are maintained by Human Resources (or the Administrative Coordinator). Personnel data is retained in personnel files, finance files, and benefit/medical files. Information is used to administer employee salary and benefit programs, process payroll, complete state and federal reports, document employee performance, etc. Employees have the right to know what data is retained, where it is kept, and how it is used. All employee data will be received, retained, and disseminated according to the Minnesota Government Data Practices Act. Media Requests: All HUC employees have a responsibility to help communicate accurate and timely information to the public in a professional manner. Requests for private data or information outside of the scope of an individual's job duties should be routed to the appropriate department. Any employee who identifies a mistake in reporting should bring the error to the General Manager or other appropriate staff. Regardless of whether the communication is in the employee's official utilities role or in a personal capacity, employees must comply with all laws related to trademark, copyright, software use, etc. With the exception of routine events and basic information that is readily available to the public, all requests for interviews or information from the media are to be routed through the General Manager. No HUC employee is authorized to speak on behalf of HUC without prior authorization from the General Manager or his designee. Media requests include anything intended to be published or viewable to others in some form such as television, radio, newspapers, newsletters, social media sites, and web sites. When responding to media requests, employees should follow these steps: 1. If the request is for routine or public information (such as a meeting time or agenda) provide the information and notify the General Manager of the request. 2. If the request is regarding information about HUC personnel, potential litigation, controversial issues, an opinion on a HUC matter, or if an employee is unsure if the request is a "routine" question, forward the request to the General Manager. An appropriate response would be "I'm sorry, I don't have the full information regarding that issue. Let me take some basic information and submit your request to the appropriate person who will get back to you as soon as he/she can." Then ask the media representative's name, questions, deadline and contact information. All news releases concerning HUC personnel will be the responsibility of the General Manager. When/if the General Manager authorizes a staff person to communicate on behalf of HUC in interviews, publications, news releases, on social media sites, and related communications, employees must: ✓ Identify themselves as representing HUC. Account names on social media sites must be clearly connected to HUC and approved by the General Manager. ✓ All information must be respectful, professional and truthful. Corrections must be issued when needed. ✓ Personal opinions generally don't belong in official statements. One exception is communications related to promoting a service. ✓ Employees need to notify the General Manager if they will be using their personal technology (cell phones, home computer, cameras, etc.) for HUC business. Employees should be aware that the data transmitted or stored may be subject to the Data Practices Act. It is important for HUC employees to remember that the personal communications of employees may reflect on HUC, especially if employees are commenting on HUC business. The following guidelines apply to personal communications including various forms such as social media (Facebook, Twitter, blogs, YouTube, etc.), letters to the editor of newspapers, and personal endorsements. ✓ Remember that what you write is public, and will be so for a long time. It may also be spread to large audiences. Use common sense when using email or social media sites. It is a good idea to refrain from sending or posting information that you would not want your boss or other employees to read, or that you would be embarrassed to see in the newspaper. ✓ HUC expects its employees to be truthful, courteous and respectful towards supervisors, co-workers, citizens, customers and other persons associated with HUC. Do not engage in name-calling or personal attacks. ✓ If you publicize something related to HUC business, identify yourself and use a disclaimer such as, "I am an employee of HUC. However, these are my own opinions and do not represent those of HUC." ✓ HUC resources, working time, or official positions cannot be used for personal profit or business interests, or to participate in personal political activity. ✓ Personal social media account name or email names should not be tied to HUC. COMPLAINT/GRIEVANCE PROCEDURE See Union Contract. EMPLOYEE CONDUCT All HUC employees are expected to conduct themselves in a manner that creates a work environment enabling employees to work effectively and to promote positive customer relations. HUC employees are required to adhere to the following standards of conduct while on the job. • To behave in a courteous, business -like manner and to comply with HUC policies and work rules. • Refrain from any and all action, which may be detrimental to the safety or work of other employees or to the goals of HUC. • To communicate openly and honestly with management, other employees, and the public. • To share responsibility for personal development and growth. • To continually strive for excellence in work product and habits. DISCIPLINE In general, HUC employees shall be subject to disciplinary action for failing to fulfill their duties and responsibilities, including observance of work rules approved by the Commission. It is the policy of the Commission to administer discipline fairly, without discrimination, and for just cause. The employee may use the grievance procedure with respect to any disciplinary action believed to be unjust or disproportionate to the alleged offense. The General Manager, Director or Manager shall investigate any allegation on which disciplinary action might be based before disciplinary action is taken. The Commission supports the concept of progressive discipline but expressly reserves the right to impose various levels of discipline depending on the nature of the offense. Staff Personnel may impose oral and written reprimands, and may send an employee home for the remainder of a shift without pay. Only the General Manager may impose a suspension without pay, letter in lieu of suspension, demotion, or discharge. Notices of oral reprimand, written reprimand, suspension without pay, demotion, or discharge will be documented in written form and will state the reason(s) for the action taken. The employee shall be provided with a copy of each such notice and a copy shall be retained in the employee's personnel file. The following are examples of disciplinary action but do not constitute an exclusive list of possibilities and may be taken in any order or not used at all. These examples and their descriptions are not intended to create a contract or obligation on management's part. A Oral reprimand. An oral notice advising an employee of inappropriate conduct and expected corrective action. B Written reprimand. A written notice advising an employee of inappropriate conduct. A written reprimand should describe in detail the behavior to be corrected, describe past actions taken by the supervisor to correct the problem, give direction and orders for the future including timetables and goals for improvement when appropriate, and specify consequences of repeating the inappropriate behavior. The employee will be given a copy of the reprimand and sign the original acknowledging receipt of the reprimand. The signature of the employee does not signify agreement with the reprimand. The reprimand will be placed in the employee's personnel file. C Prior to the suspension or as soon after as possible, the employee will be notified in writing of the reason for the suspension and its length. There are two forms of suspension: suspension as discipline and suspension pending investigation. An employee receiving a suspension as discipline may not be paid, may not accrue vacation, holiday or sick leave benefits during the suspension, and may not use paid time while suspended. An employee suspended pending investigation of allegations will have a copy of each written statement placed in the personnel file and will be paid during the investigation. If the allegations prove false, the statement will be removed. An employee placed on investigatory suspension should be notified as quickly as reasonably possible of the action taken regarding employment. D Demotion. Placement of an employee in a lower level position. E Discharge. The General Manager may discharge any employee, but if the employee has completed the probationary period, a dismissal will be made only for just cause. A dismissed employee will be notified by the previous posting of a summary of Minnesota Statute Sections 181.931 to 181.935 or by furnishing the terminated employee a copy of those statutes at termination that the employee has a right to make a written request for HUC reason for termination. If requested, HUC will provide reasons, in writing, within five working days. This notice will also contain a statement indicating that the employee may respond to the charges both orally and in writing and may appear personally before the official having authority to make or recommend the final decision. An adequate reason or "just cause" for a disciplinary action will include, but not be limited to, evidence of any of the following: A Incompetence or inefficiency in the performance of duties. B Negligence or carelessness in the performance of duty, such as in the handling or control of municipal property, equipment, or funds and failure to observe safety rules and regulations. C Offensive or inappropriate conduct or language toward Utilities employees or other persons. D Failure to obey any lawful and reasonable direction given by an employee's supervisor or the appointing authority. E Acceptance of a fee, gift, or other valuable item or benefit in the course of, or as a result of, the employee's work. This limitation is not intended to prohibit the acceptance of articles of negligible value, which are distributed generally, or to prohibit employees from accepting social courtesies, which promote good public relations. This prohibition is intended to prevent or discourage relationships, which may be construed as evidence of favoritism, coercion, unfair advantage, or collusion. Employees may accept food and refreshments in such instances as a luncheon, dinner meeting, or inspection tour in conjunction with HUC business. F Conviction of a crime, which affects or relates to the performance of assigned duties. G Using, threatening or attempting to use, political influence or unethical pressure to influence a decision on a promotion, transfer, leave of absence, increased compensation, other benefit, or any other matter in which the employee has an interest. Unethical pressure includes offers of gifts or other special benefits, coercion, collusion, threats of blackmail, requests for favoritism, and use of unfair advantage. H Absence from work without prior approval in accordance with this policy. I During assigned work schedules, (1) consuming or being under the influence of alcoholic beverages, (2) having the odor of an alcoholic beverage on the breath, or (3) consuming or being under the influence of a controlled substance, other than one prescribed by a physician, which does not impair the ability to perform assigned duties. J Tardiness or abuse of sick leave privileges. K Theft of public property, pilferage, or other unauthorized use or taking of property. L Sexual harassment. M Discrimination against or harassment of any HUC employee at any time, or any other person during work hours, based on race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, veterans status, disability, or age. N Performance of personal or other non-HUC work related matters during work hours. O Violation of the HUC's equal employment plan. P Engaging in a conflict of interest or performing public duties in a situation where the employee has a conflict of interest. Q Violations of the provisions of this Handbook and/or policies. R Horseplay, loafing or sleeping on the job. S Proven dishonesty in the performance of duties. T Acts or threats of physical violence directed toward HUC employees. U Unauthorized use or release of confidential, sensitive or privileged information. V As a supervisor, knowingly permitting another employee to violate this policy or other work rules. W Acting or failing to act in a manner not otherwise specified that tends to lower discipline or morale among HUC employees, brings or tends to bring discredit to the HUC, its employees, or that adversely affects the prompt, courteous and efficient provisions of public services. Freedom of speech protected by the First Amendment shall not be a basis for discipline. X Unauthorized possession or use of firearms or hazardous materials on HUC time or property. Y Refusal, during working hours, to submit to a Breathalyzer or other drug test required by law. CONFLICT OF INTEREST Employees must notify their Director or Manager of any direct or indirect financial interest they have in any contract with HUC, any interest they have in a contractor supplying HUC, or any such interest they may have with any entity competing with HUC, and all such notifications shall be forwarded to the General Manager. Any employee with such a financial interest may not work on any HUC project or make any decision concerning an HUC project involving the employee's outside financial interest, unless the interest has been disclosed, and deemed acceptable by HUC management. OTHER EMPLOYMENT An employee's position at HUC must take precedence over any other job an employee holds. Employees must inform their Director or Manager of any work they perform for profit outside of HUC's position to ensure there is no conflict of interest between the HUC job and the outside employment. All such notifications shall be forwarded to the General Manager. Also, employees are expected to be mentally alert and physically able to perform their Utility jobs. Employees may not work on their outside employment while on duty with HUC nor may any HUC property or equipment be used to conduct such business at any time. LICENSE REQUIREMENTS FOR UTILITY VEHICLE OPERATION Prior to hire date as an HUC employee, the candidate's driving record is evaluated and must be approved. This is a condition of employment if operation of a vehicle is an essential part of an employee's job. An employee whose job requires operating a motor vehicle must possess a valid Minnesota Driver's License with necessary endorsements in order to conduct WC business. If an employee's driver's license is suspended, revoked, or cancelled during employment with WC, the employee must immediately inform the employee's Director, Manager or Supervisor who must inform the General Manager. The General Manager shall take appropriate action up to and including discharge. SMOKING The HUC observes and supports the Minnesota Clean Indoor Air Act. All HUC buildings and vehicles, in their entirety, shall be designated as tobacco free, meaning that smoking in any form (through the use of tobacco products (pipes, cigars and cigarettes) or "vaping" with e-cigarettes is prohibited while in a HUC facility or vehicle. Smoking of any kind, including pipes, cigars, cigarettes, vaping with e-cigarettes and the use of chewing tobacco is prohibited for employees while on duty. Employees 18 and over are allowed to smoke only during their breaks and lunch, and only in areas designated for that purpose. Per City of Hutchinson ordinance, smoking is prohibited in public places and places of work and within 15 feet of entrances, exists, open windows and ventilation intakes of public places and places of work. ALCOHOL OR DRUGS Possession or consumption of alcohol or controlled substances is prohibited while on -duty or on/in any HUC equipment or property. An employee who reports to work incapacitated or whose performance is impaired through the use of alcohol or controlled substances is subject to disciplinary action up to and including discharge. All HUC employees required to maintain a Commercial Driver's License (CDL), and/or perform a maintenance or emergency function on a natural gas pipeline regulated by 49 CFR Parts 192, 193 or 195 must comply with the Total Compliance Solutions Drug and Alcohol Plan as administered by HUC VIOLENCE IN THE WORKPLACE HUC strives to ensure a healthy and productive working environment. In that regard, safety and security are of the utmost importance. HUC will enforce zero tolerance for any acts of physical assault or threats of bodily harm in the performance of work duties, wherever those duties are performed. Policy on Violence HUC views aggressive and/or violent behavior as disruptive and contrary to the development and maintenance of a safe, productive and supportive work environment. Such behavior is not tolerated. Employees who exhibit such behavior will be held accountable under the policy and work rules, as well as local, state, and federal law. All threats and acts of aggression or violent behavior should be taken seriously and addressed immediately. Such threats or acts include, but are not limited to: • Harming or threatening to harm any employee or visitor; • Damaging or threatening to damage property or the property of any employee or visitor; • Unlawfully possessing a firearm, ammunition, weapon or incendiary device on HUC property, vehicles, construction sites or while attending HUC business -related activities off site; • Engaging in stalking behavior of any employee. Accountability All personnel are responsible for notifying their immediate supervisor, or in the absence of their supervisor, another member of the management staff of any threats that they have witnessed, received, or have been told that another person has witnessed or received. Even without an actual threat, personnel should also report any behavior they have witnessed which they regard as threatening or violent, when that behavior is job related or might be carried out on a public site, or is connected to municipal employment. Employees are responsible for making this report regardless of the relationship between the aggressor and the individual to whom the threat or threatening behavior was directed. Directive Any person who makes substantial threats, exhibits threatening behavior, or engages in violent acts against employees, visitors, guests, or other individuals while on HUC property shall be removed from the premises as quickly as safety permits and shall remain off HUC premises pending the outcome of an investigation. Law enforcement should be utilized to remove individuals who are perceived as a threat. HUC will initiate an appropriate response which may include, but is not limited to, suspension and/or termination of any business relationship, reassignment of job duties, suspension or termination of employment and/or criminal prosecution of the person or persons involved. Employees and supervisors should work together to identify and report situations or locations where there is a potential for physical assault or threat of bodily harm. Employees should record specific incidents, behaviors or conversations that may indicate a potential for violence. Documentation should be forwarded to their Manager/Director. In instances where their supervisor is the source of potential violence, documentation should be forwarded to the next level of management with a copy to Human Resources. Supervisors must carefully review and assess information provided by employees or other sources. Appropriate precautions should be taken based on the specific situation. For example: If a problem situation or location is identified, it should be communicated to other employees who are likely to become involved in the situation or come in contact with the location. Individuals applying for a restraining order must provide their supervisor and Human Resources with a copy of the petition used to seek the order, and a copy of any temporary and permanent protective restraining order which is subsequently granted. Human Resources will monitor and evaluate the violence reports on an ongoing basis and will submit program reports to the General Manager when requested. OFFENSIVE BEHAVIOR/SEXUAL HARASSMENT It is HUC's policy to maintain a work environment free from offensive behavior and sexual harassment. Offensive behavior may include such actions as: rudeness, angry outbursts, inappropriate humor, vulgar obscenities, name calling, disrespectful language, or any other behavior regarded as offensive to a reasonable person. A violation of this policy is subject to discipline up to and including discharge. One specific kind of illegal behavior is sexual harassment. Sexual harassment includes unwelcome sexual advances, requests for sexual favors, sexually motivated physical conduct or other verbal or physical conduct or communication of a sexual nature when: 4. submission to that conduct or communication is made a term or condition of obtaining employment; or 5. submission to or rejection of that conduct or communication by an individual is used as a factor in a decision affecting that individual's employment; or 6. that conduct or communication has the purpose or effect of substantially interfering with an individual's employment or creating an intimidating, hostile, or offensive employment environment. Examples of conduct that violate this policy include, but are not limited to: • Repeated offensive sexual flirtations, unwelcome advances, propositions or invitations; or • Unwelcome repeated comments, jokes, displays, or suggestions of a sexual nature; or • Objectionable physical contact, including touching • In summary, sexual harassment is the unwanted, unwelcome and repeated action of an individual against another individual, using sexual overtones as a means of creating stress. Any employee who feels he/she is being subjected to offensive or discriminatory behavior of any kind or employees who are aware of such behavior is/are encouraged to express their objection to the behavior and should also immediately report the behavior to their immediate Supervisor, Department Manager or Director (if not the immediate supervisor), the Human Resources Director, or the General Manager. In addition, the employee may also file a complaint with the Minnesota Department of Human Rights and the EEOC. A person must file a complaint with the Minnesota Department of Human Rights within one year of the incident and file a complaint with the EEOC within 300 days of the incident. Staff Personnel who receives an offensive behavior or discrimination complaint shall inform the General Manager and Human Resources of the complaint as soon as possible. The General Manager must ensure an appropriate and prompt investigation of the complaint. If the investigation substantiates the complaint, HUC will take appropriate corrective action. Strict confidentiality is not possible in all cases of sexual harassment as the accused has the right to answer charges made against them; particularly if discipline is a possible outcome. Reasonable efforts will be made to respect the confidentiality of the individuals involved, to the extent possible. Any employee who makes a false complaint or provides false information during an investigation may be subject to disciplinary action, up to and including termination. Retaliation against any person who files a complaint or participates in an investigation is expressly prohibited. Retaliation includes, but is not limited to, any form of intimidation, reprisal or harassment. Any individual who retaliates against a person who testifies, assists, or participates in an investigation may be subject to disciplinary action up to and including termination. RETIREMENT Any employee who elects to retire shall give the Employer sixty (60) days' written notice of date that employee intends to retire. RESIGNATION Employees leaving employment with HUC in good standing will be paid any accrued unused vacation. To leave employment in good standing, an employee should provide written notice of resignation to Supervisor or Manager at least 10 working days prior to the resignation effective date. The General Manager may waive this requirement for good cause. A terminating employee must also return all HUC property, and equipment including keys, security devices, clothing and small hand tools provided by HUC. SOLICITATION ON UTILITY PREMISES Salespersons offering merchandise not related to HUC business are prohibited from soliciting during normal business hours. Employees are discouraged from soliciting other employees. Brochures and/or pamphlets are allowed to be put out in the breakroom for voluntary participation. Employees shall not provide another employee's contact information to a salesperson without the employee's consent. EMPLOYEE GIFTS Employees are not required to make a contribution for a gift or grant a favor for another employee. FLOWERS In the event of the death of a full-time or part-time employee, or employee's immediate family, flowers/plant will be sent at HUC expense without delay to the appropriate funeral home. Information needed: Funeral Home Address Date to Send Flowers Similar consideration may be given, at the discretion of the General Manager, Directors, or Managers, for retirees, consultants, Commission members or others who provide significant service to HUC. PETTY CASH Petry cash funds are kept with the Accountant. The petty cash fund will be used to reimburse payment up to $25.00. Any expenditure over $25.00 will be reimbursed by check. Itemized receipts mustbe attached to a complete petty cash slip whenever possible. An employee may obtain an advance of petty cash by completing a petty cash slip and reconciling the advance with the actual amount as soon as possible. HUTCHINSON UTILITIES COMMISSION ,c�,« Board Action Form 'AlUTlt Agenda Item: Approve Policy Changes Jeremv Carter Approve Policy Changes es BACKGROUND/EXPLANATION OFAGENDA ITEM: As part of HUC's standard operating procedures, a continual policy review is practiced. The following revisions to the policies below are recommended. After Hours Reconnection Policy BOARD ACTION REQUESTED: Approve Policy Changes After Hours Reconnection Policy No after hours reconnections will be done from 9.00 p.m. to 7.30 a.m. After hours reconnection fees: A $150 Reconnection Fee will be charged for any reconnection that is done: • From 4-,QQ 5100p.m. to 9.00 p.m. on Monday through Friday • From 7.30 a.m. to 9.00 p.m. on Saturdays A $200 Reconnection Fee will be charged for any reconnection that is done: • From 7.30 a.m. to 9.00 p.m. on Sundays or Holidays Payments must be made prior to reconnecting utilities. Office hours are 7.30 a.m. to 4.00 p.m. Monday through Friday, excluding holidays. After hour payments can only be made with credit card, debit card or electronic check. Holidays include the following: New Year's Day, Martin Luther King Day, President's Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, Christmas Eve Day, and Christmas Day. HUTCHINSON UTILITIES COMMISSION B Board Action Form mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: Distributed Generation 2021 Report Presenter: Dave Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: The Law requires Municipal Utilities that have adopted Cogeneration policies to review annually all Net Energy billed qualifying facilities. HUC has 12 active Solar cogneration facilities on our system. System 1----------- 400 KW Ground Mount System 2----------- 240 KW Roof Top System 3------------- 80 KW Roof Top System 4----------- 10 KW Roof Top System 5----------- 10 KW Roof Top System 6------------ 37 KW Roof Top System 7------------ 39 KW Roof Top System 8------------- 39 KW Roof Top System 9------------ 28 KW Roof Top System 10-----------27 KW Roof Top System 11----------- 7 KW Roof Top System 12----------- 625 KW Ground Mount Attached: HUC Cogeneration Policy HUC Cogeneration Rules HUC 2021 Active Cogeneration Totals BOARD ACTION REQUESTED: None Fiscal Impact: NA Included in current budget: Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost; Hutchinson Utilities Commission Policy Regarding Distributed Energy Resources and Net Metering To establish the application procedure and qualification criteria for all customers for the delivery, interconnection, metering and purchase of electricity from distributed energy resource facilities and to comply with applicable laws and rules governing distributed energy resources. The utility recognizes its obligation to provide interconnection to eligible qualifying facilities and will comply with all applicable laws and rules governing distributed energy resources. For purposes of this policy, the following terms have the meanings given them: A. Average retail energy rate - the average of the retail energy rates, exclusive of special rates based on income, age, or energy conservation, according to the applicable rate schedule of the utility for sales to the class of customer of which the customer/qualifying facility belongs. B. Avoided costs - the incremental costs to the utility of electric energy or capacity or both which, but for the purchase from the qualifying facility, the utility would generate itself or purchase from another source. C. Contract -the written agreement between the customer/qualifying facility and the utility, as established in the utility's Rules Governing Interconnection of Cogeneration and Small Power Production. D. Distributed energy resource (DER) - a distributed generation system incorporated with or without an electric storage system. E. Interconnection application - the form to be used by the customer to submit its formal request for interconnection to the utility and which shall be substantially similar in form to that contained in the Distributed Energy Resources Interconnection Process adopted by the utility. F. Interconnection rules - any applicable rules developed in accordance with Minnesota Statutes §§216B.164 and 21613.1611. This includes the utility's Rules Governing Interconnection of Cogeneration and Small Power Production. It also includes the utility's Distributed Energy Resources Interconnection Process which includes its Simplified Process, Fast Track Process, and Study Process as well as the technical requirements incorporated therein or any future technical requirements adopted by the utility. G. Measured capacity - for purposes of determining capacity, it shall be measured based on the highest fifteen (15) minute average demand of the unit in any one billing period. H. Net metering/net billing -the process whereby the customer and the utility compensate each other based on the difference in the amount of energy each sells to the other at the net metered facility. I. Net metered facility - an electric generation facility constructed for the purpose of offsetting energy use through the use of renewable energy or high efficiency generation sources with a capacity of less than 40 kilowatts that has elected in writing to be compensated for excess generation through net metering/net billing. J. Total generator nameplate capacity - the nominal voltage (V), current (A), maximum active power (kWac), apparent power (WA), and reactive power (kvar) at which a distributed energy resource (DER), is capable of sustained operation. For a qualifying facility with multiple units, the total generator capacity is equal to the sum of all individual DER units' nameplate rating in the qualifying facility. The DER system's total generation capacity may, with the utility's agreement, be limited thought use of control systems, power relays or similar device settings or adjustments as identified in IEEE 1547. The customer must fully, accurately and completely disclose in its interconnection application to the utility, the technical specifications for any capacity limiting device contemplated and the customer shall furnish the utility with any factory manuals or other similar documents requested from the utility regarding such limiting or other control devices which factor into the calculation of total generator capacity. K. Qualifying facility - a cogeneration or small power production facility which satisfies the conditions established in Code of Federal Regulations, title 18, part 292. The qualifying facility must be owned by a customer of the utility and located in the utility service area. L. Utility— Hutchinson Utilities Commission. In the event an inconsistency exists between terms in this policy and those established by applicable statute, rule or court order, then the definition so established shall supersede the definition used in this policy and shall govern. All customers are eligible for distributed generation, interconnection with the utility's distribution system and application of net metering upon the following terms and conditions. 1. The customer must meet the eligibility requirements set forth in the federal Public Utility Regulatory Policies Act of 1978 (PURPA) *18 C.F.R. 292.303, 292.304 and Minnesota's distributed generation laws. Minn. Stat. §216B.164. 2. The customer shall complete, sign and return to utility either the Interconnection Application or the Simplified Process Application in the form prescribed in the utility's Distributed Energy Resources Interconnection Process. The application shall be approved by the utility prior to the customer beginning the project. The customer signature on the application indicates the customer shall follow the steps outlined in the utility's interconnection rules. 3. The customer shall enter into a written contract with the utility using the uniform contract contained in the utility's Rules Governing Interconnection of Cogeneration and Small Power Production. 4. The qualifying facility shall pay the utility for all reasonable costs of interconnection including those costs outlined in Minnesota Statute 21613.164, the utility's DER Interconnection Process, and the State of Minnesota Interconnection Technical Requirements. 5. The qualifying facility's total generator nameplate capacity shall be less than 40 kW and the facility shall operate at a measured capacity of less than 40 kW at all times to qualify for net metering/net billing or roll over credit compensation. 6. The utility may limit the capacity and operating characteristics of qualifying facility single phase generators in a manner consistent with the utility limitations for single phase motors, when necessary to avoid a qualifying facility from causing problems with the service of other customers. 7. The utility may require the qualifying facility to discontinue parallel generation operations when necessary for system safety. 2 8. The power output from the qualifying facility must be maintained so that frequency and voltage are compatible with normal utility service and do not cause that service to fall outside the prescribed limits of interconnection rules and other standard limitations. 9. The qualifying facility shall keep in force liability insurance against personal or property damage due to the installation, interconnection, and operation of its electric generating facilities. The amount of insurance coverage shall be the maximum amount of said insurance for a qualifying facility or net metered facility as outlined in the utility's DER Interconnection Process. 10. Failure of the qualifying facility to operate its distributed energy resource at a measured capacity below the 40 kW AC capacity limit established by Minn. Stat. §216B.164, Sub. 3 and as contemplated by this policy, shall result in the following. The utility will notify the customer/qualifying facility of the fact that its generating equipment has failed to operate below the 40 kW AC maximum capacity and will provide the customer/qualifying facility with the date, time and kW reading that substantiate this finding. 11. The utility shall compensate the customer/qualifying facility for all metered electricity produced by said qualifying facility during the thirty (30) day period during which the failure occurred, at the utility's wholesale power supplier's avoided cost rate. 12. The utility shall continue to pay the customer/qualifying facility for subsequent electricity produced and delivered pursuant to the contract, at the utility's wholesale power supplier's avoided cost rate until: 1. The problem with the generator that caused it to operate at or above the statutory maximum capacity has been remedied; and 2. The utility has been provided documentation adopted by a Minnesota Professional Engineer that confirms the problem with the generator has been remedied. 13. Any customer account eligible for net metering/net billing is not eligible for any other load management discounts unless agreed to by the utility. 14. Payment for the purchase of the qualifying facility's electricity herein shall be in the form of a credit on the customer's monthly billing invoice or paid by check or electronic payment to the customer within fifteen (15) days of the billing date, whichever is selected and indicated in the contract. 15. The customer must be, and continue to be, current with payment on its electric account with utility. 16. The customer must not enter into any arrangement that violates the utility's exclusive right to provide electric service in its service area under Minnesota Statutes §§216B.37-44. 17. In the event that the distributed generator fails to meet the requirements of this policy for a total distributed generation capacity of less than 40 kW AC, and fails to satisfy the corrective requirements set forth in Section 12 above, then the utility will have the right to (1) cancel the contract with the owner of the qualifying facility, and (2) enter into a new contract with the owner of the qualifying facility that, among other changes, adjusts the qualifying facility's rated capacity and specifies avoided cost pricing for the qualifying facility's output. To the extent that the utility does not have the obligation to make purchases from qualifying facilities of 40 kW or greater due to transfer of the obligation to the utility's wholesale supplier that has been approved by the Federal Energy Regulatory Commission, the new agreement will be between the utility's wholesale supplier and the qualifying facility. In either case, the utility (and, as applicable, the utility's wholesale supplier) and the owner of the qualifying facility will cooperate in the transition from the form of contract set forth in the utility's Rules Governing Interconnection of Cogeneration and Small Power Production to a new form of contract appropriate to a qualifying facility with a capacity of 40 kW or greater. 18. Fully executed interconnection contracts for distributed energy resources may be canceled in the event the distributed energy resource fails to interconnect to the utility's distribution system within twelve (12) months of signing of the interconnection contract by the qualifying facility and the utility. M Rules Governing the Interconnection of Cogeneration and Small Power Production Facilities with Hutchinson Utilities Commission Part A. DEFINITIONS Subpart 1. Applicability. For purposes of these rules, the following terms have the meanings given them below. Subp. 2. Average retail utility energy rate. "Average retail utility energy rate" means, for any class of utility customer, the quotient of the total annual class revenue from sales of electricity minus the annual revenue resulting from fixed charges, divided by the annual class kilowatt-hour sales. The computation shall use data from the most recent 12- month period available. Subp. 3. Backup power. "Backup power" means electric energy or capacity supplied by the utility to replace energy ordinarily generated by a qualifying facility's own generation equipment during an unscheduled outage of the facility. Subp. 4. Capacity. "Capacity" means the capability to produce, transmit, or deliver electric energy, and is measured by the number of megawatts alternating current at the point of common coupling between a qualifying facility and the utility's electric system during a 15-minute interval period. Subp. 5. Capacity costs. "Capacity costs" means the costs associated with providing the capability to deliver energy. The utility capital costs consist of the costs of facilities from the utility and the utility's wholesale provider used to generate, transmit, and distribute electricity and the fixed operating and maintenance costs of these facilities. Subp. 6. Customer. "Customer" means the person named on the utility electric bill for the premises. Subp. 7. Energy. "Energy" means electric energy, measured in kilowatt-hours. Subp. 8. Energy costs. "Energy costs" means the variable costs associated with the production of electric energy. They consist of fuel costs and variable operating and maintenance expenses. Subp. 9. Firm power. "Firm power" means energy delivered by the qualifying facility to the utility with at least a 65 percent on -peak capacity factor in the month. The capacity factor is based upon the qualifying facility's maximum metered capacity delivered to the utility during the on -peak hours for the month. Subp. 10. Governing body. "Governing body" means Hutchinson Utilities Commission. Subp. 11. Interconnection costs. "Interconnection costs" means the reasonable costs of connection, switching, metering, transmission, distribution, safety provisions, and administrative costs incurred by the utility that are directly related to installing and maintaining the physical facilities necessary to permit interconnected operations with a qualifying facility. Costs are considered interconnection costs only to the extent that they exceed the costs the utility would incur in selling electricity to the qualifying facility as a nongenerating customer. Subp. 12. Interruptible power. "Interruptible power" means electric energy or capacity supplied by the utility to a qualifying facility subject to interruption under the provisions of the utility's tariff applicable to the retail class of customers to which the qualifying facility would belong irrespective of its ability to generate electricity. Subp. 13. Maintenance power. "Maintenance power" means electric energy or capacity supplied by a utility during scheduled outages of the qualifying facility. Subp. 14.On-peak hours. "On -peak hours" means either those hours formally designated by the utility as on -peak for ratemaking purposes or those hours for which its typical loads are at least 85 percent of its average maximum monthly loads. Subp. 15. Point of distributed energy resource (DER) connection. "Point of DER connection" means the point where the qualifying facility's generation system, including the point of generator output, is connected to the customer's electric system and meets the current definition of IEEE 1547. Subp. 16. Purchase. "Purchase" means the purchase of electric energy or capacity or both from a qualifying facility by the utility. Subp. 17. Qualifying facility. "Qualifying facility" means a cogeneration or small power production facility which satisfies the conditions established in Code of Federal Regulations, title 18, part 292. The initial operation date or initial installation date of a cogeneration or small power production facility must not prevent the facility from being considered a qualifying facility for the purposes of this chapter if it otherwise satisfies all stated conditions. The qualifying facility must be owned by a Customer and located in the utility service area. Subp. 18. Sale. "Sale" means the sale of electric energy or capacity or both by the utility to a qualifying facility. Subp. 19a. Standby charge. "Standby charge" means the charge imposed by the utility upon a qualifying facility for the recovery of costs for the provision of standby services necessary to make electricity service available to the qualifying facility. Subp. 19b. Standby service. "Standby service" means the service to potentially provide electric energy or capacity supplied by the utility to a qualifying facility greater than 40 kW. Subp. 20. Supplementary power. "Supplementary power" means electric energy or capacity supplied by the utility which is regularly used by a qualifying facility in addition to that which the facility generates itself. Subp. 21. System emergency. "System emergency" means a condition on the utility's system which is imminently likely to result in significant disruption of service to customers or to endanger life or property. Subp. 22. Utility. "Utility" means Hutchinson Utilities Commission. Part B. SCOPE AND PURPOSE The purpose of these rules is to implement certain provisions of Minnesota Statutes, §216B.164; the Public Utility Regulatory Policies Act of 1978, United States Code, title 16, §824a-3; and the Federal Energy Regulatory Commission regulations, Code of Federal Regulations, title 18, part 292. These rules shall be applied in accordance with their intent to give the maximum possible encouragement to cogeneration and small power production consistent with protection of the ratepayers and the public. Part C. FILING REQUIREMENTS 2 Annually the utility shall file for review and approval, a cogeneration and small power production tariff with the governing body. The tariff must contain schedules 1— 4. SCHEDULE 1. Schedule 1 shall contain the calculation of the average retail utility energy rates to be updated annually. SCHEDULE 2. Schedule 2 shall contain all standard contracts to be used with qualifying facilities, containing applicable terms and conditions. SCHEDULE 3. Schedule 3 shall contain the utility's adopted interconnection process, safety standards, technical requirements for distributed energy resource systems, required operating procedures for interconnected operations, and the functions to be performed by any control and protective apparatus. SCHEDULE 4. Schedule 5 shall contain the estimated average incremental energy costs by seasonal, peak and off-peak periods for the utility's power supplier from which energy purchases are first avoided. Schedule 4 shall also contain the net annual avoided capacity costs, if any, stated per kilowatt-hour and averaged over the on -peak hours and over all hours for the utility's power supplier from which capacity purchases are first avoided. Both the average incremental energy costs and net annual avoided capacity costs shall be increased by a factor equal to 50 percent of the utility and the utility's power supplier's overall line losses due to distribution, transmission and transformation of electric energy. Part D. AVAILABILITY OF FILINGS All filings shall be maintained at the utility's general office and any other offices of the utility where rate tariffs are kept. The filings shall be made available for public inspection during normal business hours. The utility shall supply the current year's distributed generation rates, interconnection procedures and application form on the utility website, if practicable, or at the utility office. Part E. REPORTING REQUIREMENTS Annually the utility shall report to the governing body for its review and approval an annual report including information in subparts 1-3. The utility shall still comply with other federal and state reporting of distributed generation to federal and state agencies expressly required by statute. Subpart 1. Summary of average retail utility energy rate. A summary of the qualifying facilities that are currently served under average retail utility energy rate. Subp. 2. Other qualifying facilities. A summary of the qualifying facilities that are not currently served under average retail utility energy rate. Subp. 3. Wheeling. A summary of the wheeling undertaken with respect to qualifying facilities. Part F. CONDITIONS OF SERVICE Subpart 1. Requirement to purchase. The utility shall purchase energy and capacity from any qualifying facility which offers to sell energy and capacity to the utility and agrees to the conditions in these rules. Subp. 2. Written contract. A written contract shall be executed between the qualifying facility and the utility. Part G. ELECTRICAL CODE COMPLIANCE Subpart 1. Compliance; standards. The interconnection between the qualifying facility and the utility must comply with the requirements in the most recently published edition of the National Electrical Safety Code issued by the Institute of Electrical and Electronics Engineers. The interconnection is subject to subparts 2 and 3. Subp. 2. Interconnection. The qualifying facility is responsible for complying with all applicable local, state, and federal codes, including building codes, the National Electrical Code (NEC), the National Electrical Safety Code (NESC), and noise and emissions standards. The utility shall require proof that the qualifying facility is in compliance with the NEC before the interconnection is made. The qualifying facility must obtain installation approval from an electrical inspector recognized by the Minnesota State Board of Electricity. Subp. 3. Generation system. The qualifying facility's generation system and installation must comply with the American National Standards Institute/Institute of Electrical and Electronics Engineers (ANSI/IEEE) standards applicable to the installation. Part H. RESPONSIBILITY FOR APPARATUS The qualifying facility, without cost to the utility, must furnish, install, operate, and maintain in good order and repair any apparatus the qualifying facility needs in order to operate in accordance with schedule 3. Part I. TYPES OF POWER TO BE OFFERED; STANDBY SERVICE Subpart 1. Service to be offered. The utility shall offer maintenance, interruptible, supplementary, and backup power to the qualifying facility upon request. Subp. 2. Standby service. The utility shall offer a qualifying facility standby power or service at the utility's applicable standby rate schedule. Part J. DISCONTINUING SALES DURING EMERGENCY The utility may discontinue sales to the qualifying facility during a system emergency, if the discontinuance and recommencement of service is not discriminatory. Part K. RATES FOR UTILITY SALES TO A QUALIFYING FACILITY Rates for sales to a qualifying facility are governed by the applicable tariff for the class of al electric utility customers to which the qualifying facility belongs or would belong were it not a qualifying facility. Such rates are not guaranteed and may change from time to time at the discretion of the utility. Part L. STANDARD RATES FOR PURCHASES FROM QUALIFYING FACILITIES Subpart 1. Qualifying facilities with 100-kilowatt capacity or less. For qualifying facilities with capacity of 100 kilowatts or less, standard purchase rates apply. The utility shall make available four types of standard rates, described in parts M, N, O, and P. The qualifying facility with a capacity of 100 kilowatts or less must choose interconnection under one of these rates, and must specify its choice in the written contract required in part V. Any net credit to the qualifying facility must, at its option, be credited to its account with the utility or returned by check or comparable electronic payment service within 15 days of the billing date. The option chosen must be specified in the written contract required in part V. Qualifying facilities remain responsible for any monthly service charges and demand charges specified in the tariff under which they consume electricity from the utility. Subp. 2. Qualifying facilities over 100-kilowatt capacity. A qualifying facility with more than 100- kilowatt capacity has the option to negotiate a contract with the utility or, if it commits to provide firm power, be compensated under standard rates Subp. 3. Grid access charge. A qualifying facility shall be assessed a monthly grid access charge to recover the fixed costs not already paid by the customer through the customer's existing billing arrangement. The additional charge shall be reasonable and appropriate for the class of customer based on the most recent cost of service study defining the grid access charge. The cost of service study for the grid access charge shall be made available for review by the customer of the utility upon request. Part M. AVERAGE RETAIL UTILITY ENERGY RATE Subpart 1. Applicability. The average retail utility energy rate is available only to customer -owned qualifying facilities with capacity of less than 40 kilowatts which choose not to offer electric power for sale on either a time -of -day basis, a simultaneous purchase and sale basis or roll-over credit basis. Subp. 2. Method of billing. The utility shall bill the qualifying facility for the excess of energy supplied by the utility above energy supplied by the qualifying facility during each billing period according to the utility's applicable retail rate schedule. Subp. 3. Additional calculations for billing. When the energy generated by the qualifying facility exceeds that supplied by the utility to the customer at the same site during the same billing period, the utility shall compensate the qualifying facility for the excess energy at the average retail utility energy rate. Part N. SIMULTANEOUS PURCHASE AND SALE BILLING RATE Subpart 1. Applicability. The simultaneous purchase and sale rate is available only to qualifying facilities with capacity of less than 40 kilowatts which choose not to offer electric power for sale on average retail utility energy rate basis, time -of -day basis or roll- over credit basis. Subp. 2. Method of billing. The qualifying facility must be billed for all energy and capacity it consumes during a billing period according to the utility's applicable retail rate schedule. Subp. 3. Compensation to qualifying facility; energy purchase. The utility shall purchase all energy which is made available to it by the qualifying facility. At the option of the qualifying facility, its entire generation must be deemed to be made available to the utility. Compensation to the qualifying facility must be the energy rate shown on schedule 4. Subp. 4. Compensation to qualifying facility; capacity purchase. If the qualifying facility provides firm power to the utility, the capacity component must be the utility's net annual avoided capacity cost per kilowatt-hour averaged over all hours shown on schedule 4, divided by the number of hours in the billing period. If the qualifying facility does not provide firm power to the utility, no capacity component may be included in the compensation paid to the qualifying facility. Part O. TIME -OF -DAY PURCHASE RATES Subpart 1. Applicability. Time -of -day rates are required for qualifying facilities with capacity of 40 kilowatts or more and less than or equal to 100 kilowatts, and they are optional for qualifying facilities with capacity less than 40 kilowatts. Time -of -day rates are also optional for qualifying facilities with capacity greater than 100 kilowatts if these qualifying facilities provide firm power. Subp. 2. Method of billing. The qualifying facility must be billed for all energy and capacity it consumes during each billing period according to the utility's applicable retail rate schedule. Subp. 3. Compensation to qualifying facility; energy purchases. The utility shall purchase all energy which is made available to it by the qualifying facility. Compensation to the qualifying facility must be the energy rate shown on schedule 4. Subp. 4. Compensation to qualifying facility; capacity purchases. If the qualifying facility provides firm power to the utility, the capacity component must be the capacity cost per kilowatt shown on schedule 4 divided by the number of on -peak hours in the billing period. The capacity component applies only to deliveries during on -peak hours. If the qualifying facility does not provide firm power to the utility, no capacity component may be included in the compensation paid to the qualifying facility. Part P. ROLL-OVER CREDIT PURCHASE RATES Subpart 1. Applicability. The roll-over credit rate is available only to qualifying facilities with capacity of less than 40 kilowatts which choose not to offer electric power for sale on average retail utility energy rate basis, time -of -day basis or simultaneous purchase and sale basis. Subp. 2. Method of billing. The utility shall bill the qualifying facility for the excess of energy supplied by the utility above energy supplied by the qualifying facility during each billing period according to the utility's applicable retail rate schedule. 6 Subp. 3. Additional calculations for billing. When the energy generated by the qualifying facility exceeds that supplied by the utility during a billing period, the utility shall apply the excess kilowatt hours as a credit to the next billing period kilowatt hour usage. Excess kilowatt hours that are not offset in the next billing period shall continue to be rolled over to the next consecutive billing period. Any excess kilowatt hours rolled over that are remaining at the end of each calendar year shall cancel with no additional compensation. Part Q. CONTRACTS NEGOTIATED BY CUSTOMER A qualifying facility with capacity greater than 100 kilowatts must negotiate a contract with the utility setting the applicable rates for payments to the customer of avoided capacity and energy costs. Subpart 1. Amount of capacity payments. The qualifying facility which negotiates a contract under part Q must be entitled to the full avoided capacity costs of the utility. The amount of capacity payments will be determined by the utility and the utility's wholesale power provider. Subp. 2. Full avoided energy costs. The qualifying facility which negotiates a contract under part Q must be entitled to the full avoided energy costs of the utility. The costs must be adjusted as appropriate to reflect line losses Part R. WHEELING Qualifying facilities with capacity of 30 kilowatts or greater, are interconnected to the utility's distribution system and choose to sell the output of the qualifying facility to any other utility, must pay any appropriate wheeling charges to the utility. Within 15 days of receiving payment from the utility ultimately receiving the qualifying facility's output, the utility shall pay the qualifying facility the payment less the charges it has incurred and its own reasonable wheeling costs. Part S. NOTIFICATION TO CUSTOMERS Subpart 1. Contents of written notice. Following each annual review and approval by the utility of the cogeneration rate tariffs the utility shall furnish in the monthly newsletter or similar mailing, written notice to each of its customers that the utility is obligated to interconnect with and purchase electricity from cogenerators and small power producers. Subp. 2. Availability of information. The utility shall make available to all interested persons upon request, the interconnection process and requirements adopted by the utility, pertinent rate schedules and sample contractual agreements. Part T. DISPUTE RESOLUTION In case of a dispute between a utility and a qualifying facility or an impasse in the negotiations between them, either party may request the governing body to determine the issue. Part U. INTERCONNECTION CONTRACTS 7 Subpart 1. Interconnection standards. The utility shall provide a customer applying for interconnection with a copy of, or electronic link to, the utility's adopted interconnection process and requirements. Subp. 2. Existing contracts. Any existing interconnection contract executed between the utility and a qualifying facility with capacity of less than 40 kilowatts remains in force until terminated by mutual agreement of the parties or as otherwise specified in the contract. The governing body has assumed all dispute responsibilities as listed in existing interconnection contracts. Disputes are resolved in accordance with Part T. Subp. 3. Renewable energy credits; ownership. Generators own all renewable energy credits unless other ownership is expressly provided for by a contract between a generator and the utility. Part V. UNIFORM CONTRACT The form for uniform contract that shall be used between the utility and a qualifying facility having less than 40 kilowatts of capacity is as shown in subpart 1. Subpart 1. Uniform Contract for Cogeneration and Small Power Production Facilities. (See attached contract form.) All DG (Cogeneration) Usage Month (BilledTotal Next Month) Delivered to HUC Total KWH Deliveredto Customer Electric Energy Sold Backto HUC (KWH) Net KWH Billedto Customer January 2021 3,155 232,110 866 228,955 February 2021 5,088 226,651 1,903 221,563 March 2021 14,721 220,783 7,654 206,062 April 2021 12,690 207,665 8,839 194,975 May 2021 14,089 207,577 11,339 193,488 June 2021 14,574 206,731 12,352 192,157 July 2021 22,665 264,760 11,009 242,095 August 2021 30,982 273,650 14,059 242,668 September 2021 39,101 251,071 17,794 211,970 October 2021 30,797 229,378 13,888 198,581 November 2021 15,019 261,814 3,188 246,795 December 2021 5,837 312,326 1,021 306,489 Totals 208,718 2,894,516 103,912 2,685,798 DG (Cogeneration) - Under 40 KW Usage Month (BilledTotal Next Month) Delivered to HUC Total KWH Deliveredto Customer Electric Energy Sold Backto HUC (KWH) Net KWH Billedto Customer January 2021 3,095 7,500 866 4,405 February 2021 4,818 7,551 1,903 2,733 March 2021 11,201 4,773 7,654 -6,428 April 2021 11,160 4,475 8,839 -6,685 May 2021 13,539 5,887 11,339 -7,652 June 2021 14,324 9,651 12,352 -4,673 July 2021 13,415 10,190 11,009 -3,225 August 2021 19,792 12,590 14,059 -7,202 September 2021 26,051 11,961 17,794 -14,090 October 2021 21,627 10,028 13,888 -11,599 November 2021 7,469 13,084 3,188 5,615 December 2021 5,427 16,066 1,021 10,639 Totals 151,918 113,756 103,912 -38, 162 Total KWH Delivered to HUC The Solar system produced more than the customer consumed during anytime in that month Total KWH Delivered to Customer The Customer consumed more than the solar system produced during anytime in that month Electric Energy Sold Back to HUC (KWH) The solar system produced more than the customer consumed during that Month Net KWH Billed to Customer The net between the total kwh delivered to HUC and total delivered to the customer. The meters are hi -directional. When the system is producing more than the customer is consuming the excess is delivered to HUC and recorded. When the system is producing less than the customer is consuming the meter is recording the energy delivered. If during the Month, the system produced more than the customer consumed then there is a credit to the customer. All energy Sold Back to HUC was from systems smaller than 40KW. HUTCHINSON UTILITIES COMMISSION��` Board Action Form �r�turscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: Cogeneration and Small Power Production annual Tariff Filing Presenter: Dave Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments,: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Annually Municipal Utilities shall file for review and approval, a cogeneration and small power production tariff with the governing body. Schedule 1: For facilities of 40KW or less "Average retail utility energy rate" means, for any class of utility customer, the quotient of the total annual class revenue from sales of electricity minus the annual revenue resulting from fixed charges, divided by the annual class kilowatt-hour sales. The computation shall use data from the most recent 12- month period available. Schedule 4: For facilities 40KW - 10OKW HUC estimated the avoided energy cost by first calculating the total cost for the previous year assuming HUC purchased all energy to supply its member load from the MISO market on an hourly basis, at the real-time LMP. The total cost was then divided by the total energy requirement resulting in an historic load -weighted $/MWh costs. Attachements: Schedule 1 Schedule 4 BOARD ACTION REQUESTED: Approve Cogeneration and Small Power Production Tariff Fiscal Impact: NA Included in current budget:Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: Hutchinson Utilities Commission DOCKET NO. E999/PR-22-09 Reporting Year: 2022 Cogeneration and Small Power Production Tariff Utility: Hutchinson Utilities Commission Minn. Rules 7835.0650 Schedule 1: Calculation, Average Retail Energy Rate 7835.0100 DEFINITIONS. Subp. 2a. Average retail utility energy rate. "Average retail utility energy rate" means, for any class of utility customer, the quotient of the total annual class revenue from sales of electricity minus the annual revenue resulting from fixed charges, divided by the annual class kilowatt-hour sales. Data from the most recent 12- month period available before each filing required by parts 7835.0300 to 7835.1200 must be used in the computation. Rate Class Total Class Revenue Fixed Charges kWh Sales Average Retail Energy Rate Residential $ 6,013,886.49 $ 1,202,481.42 55,645,380 $ 0.0865 Small General $ 1,875,538.20 $ 208,518.60 17,672,005 $ 0.0943 Large General $ 7,856,315.53 $ 2,276,952.25 78,549,650 $ 0.0710 Hutchinson Utilities Commission DOCKET NO. E999/PR-22-09 Reporting Year: 2022 Cogeneration and Small Power Production Tariff Utility: Hutchinson Utilities commission Minn. Rules 7835.1100 Schedule 4: Wholesale Power Rates $.04397/Kwh Hutchl nson Utl llties Commisslon establishes its avoided cost rate annually. For Quallfying Faculties of 40 KW - 100 kW, the Rate is 4.397 cents per kWh for 2022, The rates for Qualifying Faculties greater than 100 kW are negotiated and will takelnto consideration factors enumerated In Section 292.304 of the regulations of the Federal Energy Regulatory Commisslon. HUTCHINSON UTILITIES COMMISSION��` Board Action Form �r�turscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: Approval of 3M's Natural Gas Transportation and Daily Swing Supply Agreement Presenter: John Webster Agenda Item Type: Time Requested (Minutes): New Business Attachments,: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: 3M currently transports base load and daily swing supplies of natural gas on Hutchinson Utilities' transmission and distribution systems. 3M's current agreement expires on March 1, 2022 at 9 A.M.. This agreement provides transportation rights to 3M on Hutchinson's facilities from March 1, 2022 at 9.00 A.M., through March 1, 2023 at 9.00 A.M.. This Agreement is identical to the 2021 Agreement . All fees are in alignment with the rate realignment structure proposed by the Commission for this customer. BOARD ACTION REQUESTED: Approval of the 3M's Natural Gas Transportation and Daily Swing Supply Agreement Fiscal impact: Approx. $680,000 per year Included in current budget: Yes Budget Change: No PROJECT SECTION: Total Project Cost: Remaining Cost: 225 Michigan Street SE �otae�rio�, Hutchinson, MN 55350-1905 Utilities 320-587-4746 1 Fax 320-587-4721 tilities www.hutchinsonutilities.com ui�us Commission Putting All of Our Energy into Serving You U AGREEMENT THIS AGREEMENT IS MADE BY AND BETWEEN HUTCHINSON UTILITIES COMMISSION, HEREINAFTER "HUC" AND MINNESOTA MINING AND MANUFACTURING CO., HEREINAFTER "3M", ON THE FOLLOWING TERMS AND CONDITIONS. WHEREAS, 3M DESIRES TO PURCHASE, AND HUC SHALL PROVIDE, FIRM NATURAL GAS TRANSPORTATION AND DAILY NATURAL GAS COMMODITY SWING SUPPLY FOR USE AT 3M's HUTCHINSON NORTH AND SOUTH PLANTS; AND, WHEREAS, 3M DOES ACKNOWLEDGE THAT HUC WILL, IN RELIANCE UPON THIS AGREEMENT, ENTER INTO AN AGREEMENT TO PROVIDE FIRM NATURAL GAS TRANSPORTATION AND DAILY NATURAL GAS COMMODITY SWING SUPPLY. NOW, THEREFORE, 1N CONSIDERATION OF THE FOREGOING AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, THE PARTIES MAKE THE FOLLOWING AGREEMENT: HUC SHALL PROVIDE, AND 3M SHALL ACCEPT, FIRM NATURAL GAS TRANSPORTATION AND DAILY NATURAL GAS COMMODITY SWING SUPPLY COMMENCING MARCH 1, 2022, AT 9:00 A.M. AND TERMINATING ON MARCH 1, 2023, AT 9:00 A.M. 1 . HUTCHINSON'S SOLE OBLIGATION UNDER THIS AGREEMENT IS TO PROVIDE FIRM NATURAL GAS TRANSPORTATION AND DAILY NATURAL GAS COMMODITY SWING SUPPLY TO 3M. 2. 3M SHALL PAY HUC BY THE FOLLOWING SCHEDULE DURING THE TERM OF THIS AGREEMENT: FLOW THROUGH ALL NATURAL GAS METERS TRANSPORTATION (TRANSMISSION - $0.20/DTH) (DISTRIBUTION - $0.27/DTH) METER FEE (6 METERS) MONTHLY PEAK DAY DEMAND $0.47/DTH $21 5/METER $9.00/MCF 3. HUC SHALL TRANSPORT ALL 3M QUANTITIES FROM THE HUC PIPELINE TRIMONT/TRIMONT RECEIPT POINT TO THE HUTCHINSON 3M NORTH AND SOUTH PLANTS LOCATED IN HUTCHINSON, M I N N ESOTA. HUTCHINSON AGREES TO PROVIDE DAILY SWING SUPPLY TO 3M AT THE APPLICABLE PRICE, AS PUBLISHED FOR THE DAY BY PLATT'S "GAS DAILY" IN ITS "DAILY PRICE SURVEY ($/DTH)" FOR "NORTHERN, VENTURA" "MIDPOINT" ("DAILY INDEX") PLUS/MINUS $0.01 . SWING SUPPLY IS DEFINED AS SUPPLY INCREASES OR DECREASES, FROM CONTRACTED LEVELS, NOMINATED AT LEAST 24 HOURS PRIOR TO THE START OF THE GAS DAY. 4. HUTCHINSON SHALL PROVIDE 3M WITH REAL-TIME BALANCING, BASED ON THE FOLLOWING: BEST EFFORTS REALTIME SWING NOMINATED LESS THAN 24 HOURS PRIOR TO THE END OF THE GAS DAY ON A BEST EFFORTS BASIS, PRICED AT THE APPLICABLE PRICE, AS PUBLISHED FOR THE DAY BY PLATT'S "GAS DAILY" IN ITS "DAILY PRICE SURVEY ($/DTH)" FOR "NORTHERN, VENTURA" "MIDPOINT" ("DAILY INDEX"), PLUS/MINUS $0.1 5. 5. 3MmSHALL PROVIDE TO HUC, BY THE END OF„THE 15TH DAY„ OF THE MONTH PRIOR TO GAS FLOW THE BASE LOAD LEVEL OF NATURAL GAS REOU1REDww FOR THE FOLLOWING MONTH. IN THE EVENT HUCHAS NOT RECEIVED THE BASE LOAD NOMINATION FROM 3M BY THE END OF THE .._1.5TH DAY OF THE MONTH PRIOR TO THE GAS FLOW HUC SHALL NOMINATE THE CURRENT MONTH'S BASE „LOAD LEVEL FOR THE FOLLOWING MONTH 6. DURING THE TERM OF THIS AGREEMENT, HUC SHALL NOT BE LIABLE FOR STOPPAGE OF FLOW ON THE PIPELINE, NORTHERN BORDER PIPELINE COMPANY EQUIPMENT FAILURE, OR ANY OTHER FORCE MAJEURE WHICH AFFECTS THE FLOW OF GAS TO THE HUC BORDER STATIONS, OR ANY ACT OF GOD WHICH INTERRUPTS FLOW OF GAS ON THE PIPELINE. 7. PAYMENT IS DUE FROM 3M ON OR BEFORE THE TENTH DAY FOLLOWING THE DATE THE BILL IS ISSUED BY HUC. 8. THE INITIAL TERM FOR SERVICE UNDER THIS AGREEMENT IS ONE (1) YEAR. 3M MUST NOTIFY HUC IN WRITING THREE (3) MONTHS PRIOR TO THE EXPIRATION OF THE TERM IF 3M DESIRES TO CONTINUE SERVICE UNDER THIS AGREEMENT. IF 3M HAS COMPLIED WITH ALL TERMS OF THIS AGREEMENT, AND HAS NO OUTSTANDING ARREARAGES, 3M MAY, UPON WRITTEN NOTICE PROVIDED TO HUC THREE (3) MONTHS PRIOR TO THE EXPIRATION OF THE CURRENT TERM, EXTEND THIS AGREEMENT FOR A MUTUALLY AGREED -UPON PERIOD. IF A TERM FOR THE EXTENSION CANNOT BE AGREED UPON BY 3M AND HUTCHINSON, THE PARTIES AGREE TO A MINIMUM TERM OF (1) YEAR. IF SUCH TIMELY NOTICE IS NOT PROVIDED BY 3M, HUC IS NOT OBLIGATED TO RENEW SERVICE FOR 3M. REPRESENTATIVES OF HUC AND 3M SHALL MEET APPROXIMATELY (2) MONTHS PRIOR TO THE EXPIRATION DATE OF THE INITIAL TERM OF THIS AGREEMENT TO DISCUSS FUTURE OPERATIONS. THIS AGREEMENT SETS FORTH ALL TERMS AGREED UPON BETWEEN THE PARTIES, AND NO PRIOR ORAL OR WRITTEN AGREEMENTS SHALL BE I:• AGREEMENT SHALL NOT BE ALTEREDAMENDED OR MODIFIED EXCETH PAR HUTCHINSON UTILITIES COMMISSION BY: NAME: DATE: BY: NAME: TITLE: SECRETARY DATE: MINNESOTA MINING & MANUFACTURING BY: 0�9 NAME: TITLE: DATE: '7 ,' HUTCHINSON UTILITIES COMMISSION��` Board Action Form �r�turscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: Air Stack Emission Testing Plant 1 and Plant 2 Presenter: Mike G Agenda Item Type: Time Requested (Minutes): 5 New Business El Attachments': Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Every 2-5 years HUC needs to perform testing on the exhaust stacks at both plant 1 and plant 2 for the air permit. This year all of the units are due in April of 2022. The attached project summary outlines the requirements to conduct the testing. Pricing is valid for ninety (90) days after proposal issuance date. • Plant I Compliance Testing: $31,450.00 • Plant 2 Compliance & PS Testing: $8,150.00 Total $39,600.00 Please see attached quote from Interpoll- now Alliance Source Testing. Looking for Board approval of Requisition #009022 for $39,600.00. BOARD ACTION REQUESTED: Approve Requisition # 009022 Fiscal Impact: 39,600 Included in current budget: Yes Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: HUTCHINSON UTILITIES ra,�itiaa° oni'initIIIEwasrioI'll ALLIANCE SOURCE TESTING 255 GRANT ST SE, STE 600 DECATUR, AL 35601 Note Description: Stack Testing PLant 1 and Plant 2 PURCHASE REQUISITION HUTCHINSON UTILITIES COMMISSION 225 MICHIGAN ST SE HUTCHINSON, MN 55350 Phone:320-587-4746 Fax:320-587-4721 Date Requisition No. 02/02/2022 009022 Required by: Requested by: mgabrielson Item No. Part No. Description Qty Unit Due Date Unit Price Ext. Amount PLANT 1 COMPLIANCE TEST - MFG. PART: 1 1.00 EA $31,450.000 $31,450.00 PLANT 2 COMPLIANCE AND PS TESTING - MFG. PART: 2 1.00 EA $8,150.000 $8,150.00 Total: 39,600.00 Date Printed: 02/02/2022 Requisitioned By: mgabrielson Page: 1/1 C larvcm . D-interpoll now All " January 28, 2022 Mike Gabrielson Hutchinson Utilities Commission 225 Michigan Street Southeast Hutchinson, MN 55350 RE: Compliance and Performance Specification Testing AST Proposal No. 2022-0325-S Dear Mr. Gabrielson, Interpoll Laboratories Inc. now Alliance Source Testing, LLC (AST) appreciates the opportunity to provide Hutchinson Utilities Commission (Hutchinson) with this proposal. AST understands that Hutchinson desires compliance and performance specification (PS) testing at the Hutchinson Utilities Plant in Hutchinson, Minnesota. Plant 1 Compliance testing will include determining the emission concentrations/ rates of total HAPs, formaldehyde (H2CO), total particulate matter (TPM), nitrogen oxide (NOx), CO and volatile organic compounds (VOC) from Unit 5 (EQUI10, STRU14), Unit 6 (EQUI 28, STRU 21) and Unit 7 (EQUI 29, STRU 22). Plant 2 PS testing will include conducting a RATA on the NOx and CO2 CEMS serving to monitor the emissions at Unit 1 (EU001). The emission factor of CO on Unit 1 (EU 001) and CO and NOx Unit 9 (EU004) will also be determined. AST also understands that testing is required to demonstrate compliance with the Minnesota Pollution Control Agency Permit Nos. 0850002- 101 and 08500032-002, 40 CFR 75, 40 CFR 60 Subpart JJJJ and 40 CFR 63 subpart ZZZZ. AST's complete emission testing and analytical approach is included as an attachment. By selecting AST to perform the emission testing, Hutchinson will greatly benefit from our desire and ability to mobilize and respond quickly and efficiently to your needs. AST provides source testing solutions to our partners throughout the United States. With our expertise in performing U.S. EPA, SW-846, GARB, SCAQMD, NIOSH and NCASI test methods and our strategically located regional field offices, we are uniquely qualified to provide Hutchinson with the highest quality and most cost-effective source testing solutions available. AST's approach is unique in the industry in that we utilize a centralized approach to all operations within the company. We look at this in three (3) areas — People, Process, and Technology. A few key elements/differentiators to consider in our bid response: We utilize a centralized approach to all operations and resources within the company. We look at this in three (3) areas — People, Process, and Technology. o Our People focus only on stack testing (our core business) and are hired and trained with a focus on quality, communication, and expertise. o Our Processes are unmatched in the stack testing industry and allow us to perform better, faster, and more accurately than any other testing group. o Our use of Technology allows us to be more prepared, meet customers' special scheduling needs, and provide higher quality results than anyone. AST tracks KPIs on delivery and quality for all customers —and holds our entire organization accountable for continuous improvement AST is uniquely situated to be able to manage ALL regions of Hutchinson's testing needs and has the tools and resources currently in place to do so. AST believes that communication and relationships are key and critical to the success of all projects. CORPORATE OFFICE SOURCE „1" ST NO EMISSIONS I ONMORI G t+.lAt,."N"TICAI.... S )nC,ES /� Q)Iinterpoll Alliance AST's people are educated, trained, and experienced with a focus on quality and communication. Our process includes a centralized approach including procedures that maximize our results and quality. For example, our personnel are provided with Wi-Fi-enabled mobile labs and pre -configured test data templates. Data is immediately uploaded to our centralized server where our Technical Services and QA teams begin the process of data review and report creation. With a dedicated Technical Services Team providing all proposals, protocols and reports, our quality control, responsiveness and scalability are unmatched. Finally, we utilize a proprietary software program for capturing pre- test, test, and post test data for each source, project, and customer and maintain this database for future access, data analytics, and historical reference. AST's staff includes QSTI qualified Project Managers (PM) who will oversee the field testing for each phase of this project for Hutchinson. Each PM will have multiple responsibilities associated with these projects including field testing, field testing supervision, test plan and report development and/or review, and quality assurance/quality control review. Our ability to provide resources to meet the largest or smallest customer need is unmatched in our industry. We invest heavily into creating a system that ensures efficient response to customer needs. The foundation of that effort is our 2+2+2 Alliance Advantage. We guarantee that we will provide a cost estimate within two (2) business days of receiving a firm scope of work, a draft protocol/test plan within two (2) business days of receiving customer acceptance of this proposal, and a draft test report within two (2) weeks of the completion of field work (or if laboratory analysis is required, the guarantee is two (2) business days from receipt of laboratory data). We have a Technical Services Division that is dedicated solely to ensuring the quality of data and generating proposals, test plans and test reports for our customers. The attached project summary outlines our understanding of your requirements, describes our approach to meet your needs, and presents assumptions we made to develop a lump sum cost estimate to conduct this testing. Pricing is valid for ninety (90) days after proposal issuance date. • Plant 1 Compliance Testing: $31,450 • Plant 2 Compliance & PS Testin S 150 Total: $39,600 The lump sum cost estimate does not account for contingency costs associated with site -specific COVID-19 policies, including but not limited to quarantines prior to site entry, that were undisclosed by Hutchinson and not expressly listed in the proposal. If Hutchinson's COVID-19 policies result in additional time or expenses prior to or during the scheduled testing and are not specifically identified in the Proposed Project Schedule provided in the Project Summary, additional charges will apply. The lump sum cost estimate is predicated on Net 30-day payment terms (as outlined in more detail in the enclosed Terms & Conditions). AST invoices upon completion of field work and offers a 1% discount if payment is received upon receipt of the Draft Report. AST encourages customers to issue Purchase Orders for 15% more than the lump sum cost estimate to account for any potential Additional Charges (outlined in detail on the following pages). (:X:)RP0FZA„t„lmm' OFFICE SOURCE 'TEs"nNG IDAISSIGNS MONIII'VING ANALYTICAL SERVICES To move forward with this project and reserve your preferred date(s) for field work, please sign and return the Customer Proposal Acceptance below and issue a Purchase Order for the applicable amount to PO@stacktest.com We look forward to working with you on this project. Please do not hesitate to contact us at (763) 786-6020 to discuss this proposal. Sincerely, Alliance Source Testing, LLC �? Edlvard "EJ" Juers Operations Manager - Minneapolis Jesse Rocha Regional Manager Customer Proposal Acce, tance I have reviewed and accept this Proposal and the Terms & Conditions included herein. By signing the below, I am awarding this business to Alliance Source Testing and am authorizing them to proceed with this project. AST Proposal No. 2022-0325-S Signature: Name: Title: Date: cc: Sean Strandlund, AST Enclosure CORPORM OFFIC II ? WURGE; TESTING E II ISM reI0NS Y ONITO M3 [.... I11CA1II.... SERVICES PROJECT SUMMARY PROJECT SCOPE OF WORK compliance testing at the Hutchinson, MN facility. The following table details AST's Hutchinson desires PS and understanding of the testing locations, parameters, applicable test methods and required test runs. Parameter U•�• EPA Reference No. of Test Runs mmrvrvry Test Method Test Run Duration Volumetric Flow Rate 1 & 2 ILocation Oxygen / Carbon Dioxide 3A Moisture 4 Particulate Matter 5 / 202' Unit 5, Unit 6, Unit 7 Nitrogen Oxides 7E 3 / 60 minutes ... .....— (PM 120 minutes) Carbon Monoxide 10 Volatile Organic Compounds 25A Formaldehyde 320 or 18' HAPs 181,2 Carbon Dioxide 3A .... Moisture Content 4 9-12 / 21 minutes Unit1 ,............................w.....-............................... Nitrogen Oxides 7E Carbon Monoxide 10 3 / 60 minutes Oxygen 3A Unit 9 Nitrogen Oxide 7E 3 / 60 minutes Carbon Monoxide 10 'AST will conduct the sample analyses at the Circle Pines, MN laboratory. x Speciated HAPs include: Acetaldehyde, Formaldehyde, Acrolein & Methanol AST Proposal No. 2022-0325-S Hutchinson — Hutchinson, MN January 28, 2022 Compliance & RATA Testing Page 1 PROJECT SUMMARY PROPOSED PROJECT SCHEDULE The project schedule will be finalized upon receiving written documentation to proceed from Hutchinson. The following table lists AST's proposed schedule that was used to develop the cost estimate. A revised cost estimate may be needed if the proposed schedule is modified. Day Scheduled Activity W� Estimated Onsite Hours 1 Team 1 - Equipment Setup on Unit 5 8 Team 2 - Equipment Setup & Conduct Testing on Unit 9 2 Team 1 - Conduct Testing on Unit 5; Setup on Unit 6 10 Team 2 - Conduct Testing on Unit 1 & Equipment Breakdown 3 Team 1 - Conduct Testing on Unit 6; Setup on Unit 7 10 4 Team 1 - Conduct Testing on Unit 7 & Equipment Breakdown 12 5 Contingency Day (if needed) * AST has allowed for a contingency day but has not included onsite time in the cost estimate. Please see Additional Charges for applicable labor, equipment and per diem rates and direct costs that will be billed in addition to the previously stated cost. PROJECT RESPONSIBILITES Hutchinson's responsibilities shall include the following: • Provide an adequate source of electricity (one circuit, 100 amps at 220 VAC within 50 feet of each mobile laboratory setup location — two circuits, 20 amp circuits at 115 VAC within 50 feet of each sampling location). • Provide adequate test ports and access to those ports (ladder, scaffolding or man -lift) and materials for sufficient temporary protection of test personnel and equipment from hazardous and environmental conditions. • Provide process operating, control system and CEMS data in sufficient detail to perform necessary test calculations and as required by the facility permit or federal regulatory standard. ADDITIONAL CHARGES Hutchinson may be invoiced for onsite testing delays (including but not limited to inclement weather and process/control system malfunction), not the fault of AST personnel, at the standby rate of $120 per person per hour and $2,500 per day for onsite equipment. If delays result in a complete down day, Hutchinson will be billed a minimum of eight (8) hours. If delays result in an additional night(s) of lodging, then lodging costs will be billed at cost plus 15 percent. Daily per diem will also be billed at $75 per person per day. Hutchinson may be invoiced for work performed on the weekends (Saturday and Sunday) and holidays. A surcharge of $500 per person will be added for each day (weekend or holiday) onsite work is performed. Hutchinson may also be invoiced a lump sum fee for postponing or canceling this project within 10 business days of the scheduled date of arrival. Additional labor (such as mobilization, demobilization or project management time) and/or direct expenses may be invoiced in addition to these lump sum fees. The postponement/cancellation fee schedule is as follows: 6-10 business days 2-5 business days l business day AST Proposal No. 2022-0325-S 15% of total project cost 30% of total project cost 50% of total project cost Hutchinson — Hutchinson, MN Compliance & RATA Testing Page 2 January 28, 2022 PROJECT SUMMARY AST personnel are required to abide by Department of Transportation (DOT) regulations. AST personnel are limited, by law, to a maximum of fourteen (14) hours per workday including travel time, and a maximum of seventy (70) hours in an 8-consecutive day period. Off duty time must include ten (10) consecutive hours each day. If AST personnel reach the allowable work and/or driving hour DOT limits due to causes beyond their control (including but not limited to inclement weather and process/control system malfunction) and an additional day of onsite or travel time is required, charges above the original lump sum cost estimate may be incurred. AST's standard employee standby and per diem rates will apply when billing the additional time. If Hutchinson cannot supply an adequate source of electricity (100 amps @ 220 VAC) to operate the mobile laboratory, then AST can operate the mobile laboratory using a rental generator. Hutchinson will be invoiced at cost plus 15 percent for using this generator. If Hutchinson cannot provide safe access to test ports, AST will rent and operate a man lift. Hutchinson will be invoiced at cost plus 15 percent for the manlift rental. If offsite Method 18 bag sample analysis is required for methane determination, an additional cost of $500 for the first bag sample analysis and $250 for each additional bag sample analysis will apply. Reagent, field and/or proof blank samples will be procured during this test program. If requested, the blank samples can be analyzed on a cost plus 15 percent basis. AST can provide additional reporting services to regulatory agencies including, but not limited to, ERT and ECMPS. Hutchinson will be invoiced additional project management and administrative time at AST's standard labor rates for these additional reporting services. An additional four (4) percent charge will be added to the total project cost if Hutchinson elects to pay via credit card. TEST PLAN/REPORT SUBMITTAL An electronic draft test plan will be submitted to Hutchinson for review within two (2) business days following the receipt of a purchase order or other acknowledgement to proceed. An electronic copy of the final test plan will be provided to Hutchinson for submittal to the regulatory agency. An electronic draft report will be submitted within two (2) weeks following the completion of onsite testing, or if sample analyses are required, within two (2) business days following the receipt of laboratory results. The standard laboratory turn -around time is ten (10) business days from receipt of the samples. An electronic version of the final report will be submitted within two (2) business days following the receipt of draft report comments. If requested, up to two (2) hard copies of the final test report will be submitted. Additional hard copies can be provided at a rate of $50 per copy. The final test report will include the following: • Introduction — Brief discussion of project scope of work and activities. • Results and Discussion —A summary of test results and process/control system operational data with comparison to regulatory requirements or vendor guarantees along with a description of process conditions and/or testing deviations that may have affected the testing results. • Methodology — A description of the sampling and analytical methodologies. • Sample Calculations — Example calculations for each target parameter. • Field Data — Copies of actual handwritten or electronic field data sheets. • Laboratory Data — Copy of laboratory report(s) and chain(s) of custody. • Quality Control Data — Copies of all instrument calibration data and/or calibration gas certificates. • Process Operating/Control System Data — Process operating, control system and CEMS data (as provided by Hutchinson) to support the test results. AST Proposal No. 2022-0325-S Hutchinson — Hutchinson, MN January 28, 2022 Compliance & RATA Testing Page 3 TERMS AND CONDITIONS - ALLIANCE SOURCE TESTING, LLC Alliance Source Testing, LLC (AST) hereby agrees to sell and furnish to Client, and Client agrees to purchase and acquire from AST, certain services and related items as set forth in one or more AST Proposals, purchase agreements, purchase orders or similar instrument by which AST is providing services to Client (herein collectively the "Agreement"). All Agreements are subject to the following terms and conditions (the "Terms"), which such Terms are accepted without modification by Client in connection with any request by Client for services from AST and are incorporated into all documents pertaining to services performed by AST as if fully set forth therein. 1. DUE EXECUTION. The person signing these Terms represents and warrants that he/she is either (i) the Client or (ii) is an authorized officer or agent of Client and has full legal authority to sign and accept these Terms for and on behalf of Client. 2. PAYMENT TERMS. AST shall invoice periodically for work done or to be done, as appropriate. Client agrees to pay the AST invoice in full within 30 days of transmission of the invoice by AST to Client. If payment is received on or before the draft report delivery date, then AST shall grant Client a 1% discount on the total invoice amount. Client shall inform AST of any disputed charges within 5 business days of receiving the invoice. Should an invoice need to be amended, the original invoice transmittal date shall still apply for purposes of determining the payment due date. If payment is not received by AST from Client by the due date, Client agrees to pay interest on the past due amount at a rate of one percent (1.00%) per month until paid (but not more than the maximum rate of interest allowed by applicable law), and further agrees to pay reasonable costs of collection incurred by AST, including without limitation, court costs and attorney's fees. No deduction shall be made from the AST invoice on account of liquidated damages or other sums withheld from payments to contractors or others. Either party may terminate the Agreement with or without cause upon 30 days written notice to the other party. In the event Client requests termination prior to completion of the project, Client agrees to pay AST for all costs incurred through the date of notice of termination, plus reasonable charges associated with termination of the work. 3. STANDARD OF CARE, WARRANTIES. AST will perform its services using that degree of care and skill ordinarily exercised under similar conditions by reputable members of the profession practicing in the same or similar locality. NO OTHER WARRANTY, EXPRESS OR IMPLIED, IS MADE OR INTENDED RELATED TO AST'S PROFESSIONAL CERTIFICATION OR BY AST'S ORAL OR WRITTEN REPORTS, INCLUDING BUT NOT LIMITED TO WARRANTIES OF TITLE, MERCHANTABILITY, NON -INFRINGEMENT, FITNESS, OR FITNESS FOR A PARTICULAR PURPOSE, ALL OF WHICH WARRANTIES ARE EXPRESSLY DISCLAIMED. THIS WARRANTY IS EXCLUSIVE, AND IS IN LIEU OF ALL OTHER WARRANTIES, WHETHER WRITTEN, ORAL OR IMPLIED, INCLUDING THE WARRANTY OF MERCHANTABILITY AND THE WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE. 4. INSURANCE. AST maintains insurance coverage as follows: a. Worker's Compensation insurance— applicable statutory amounts b. Commercial General Liability Insurance - $1,000,000 peroccurrence/ $10,000,000 excess c. Professional Errors & Omissions - $1,000,000 per claim / $10,000,000 excess d. Pollution Liability Insurance - $1,000,000 per claim / $10,000,000 excess e. Automobile Liability Insurance - $1,000,000 combined single limit S. SITE OPERATIONS: Client will arrange for right -of -entry to the property for the purpose of AST performing studies, tests and evaluations pursuant to the agreed services. Client represents that it possesses necessary permits and licenses required for its activities at the site. AST's field personnel are trained to initiate sampling within a reasonable distance of each designated location. The AST field personnel will avoid hazards or utilities which are visible to them at the site. If AST is advised in writing or given data in writing that reveal the presence or potential presence of underground or over -ground obstructions, such as utilities, AST will give special instructions to the AST field personnel. AST is not responsible for any damage or losses due to undisclosed or u nknown surface or subsurface conditions on Client premises. Except for AST's gross negligence or willful misconduct, and to the maximum permitted by law, Client shall indemnify and hold harmless AST, and its directors, officers, employees, and agents (collectively "AST Indemnitees") from and against any and all claims, losses, damages, suits, fees, judgments, costs, and expenses (collectively "Claims") including attorney's fees incurred in response to such Claims, that the AST Indemnitees may suffer or incur arising out of or connected with performance of AST's duties at the Client site. AST will take reasonable precautions to minimize damage to the property caused by the AST operations. Sample locations described in the AST report or shown on sketches are based on specific information furnished by others or estimates made in the field by the AST personnel. Such dimensions, depths or elevations should be considered as approximations unless otherwise stated in the AST proposal or report. 6. FIELD REPRESENTATIVE: The presence of the AST field personnel, either full-time or part-time, will be for the purpose of providing observation and field testing of specific aspects of the project as authorized by Client. Should a contractor not retained by us be involved in the project, Client will advise contractor that the AST services do not include supervision or direction of the actual work of the contractor, its employees or agents, unless previously agreed upon in writing. Client will also inform contractor that the presence of the AST field representative or observation or testing by AST will not relieve the contractor of its responsibilities for performing the work in accordance with the plans and specifications. If a contractor (other than a subcontractor to AST) is involved in the project, Client agrees that, in accordance with generally accepted construction practices, the contractor will be solely and completely responsible for working conditions on the jobsite, including safety of all persons and property during performance of the work, and compliance with OSHA regulations, and that these requirements will apply continuously and not be limited to normal working hours. It is agreed that AST will not be responsible for job or site safety on the project and that AST does not have the duty or right to stop the work of thecontractor. 7. UNFORESEEN CONDITIONS OR OCCURRENCES: It is possible that unforeseen conditions or occurrences may be encountered which could substantially alter the necessary services or the risks involved in completing the AST services. If this occurs, AST will promptly notify and consult with Client, but will act based on AST's sole judgment where risk to the AST personnel is involved. Possible actions could include: (a) Complete the original Scope of Services in accordance with the procedures originally set out in the AST proposal, if practicable in AST's sole judgment; (b) Mutually agree with Client to modify the Scope of Services and the estimate of charges to include study of the unforeseen conditions or occurrences, with such revision to be agreed to in writing prior to AST continuing services; (c) Terminate the service effective on the date specified by AST in writing (in which case Client agrees to pay AST for all costs incurred through the date of notice of termination, plus reasonable charges associated with termination of the work). 8. SAMPLE SHIPMENTS AND DISPOSAL: AST may ship test samples by freight or common carrier, and in such event responsibility for the samples shall be as set out in the contract for shipment between AST and such freight or common carrier (and AST shall not be responsible for such test samples while in transit or under the control of such freight or common carrier). Samples generally are consumed or substantially altered during analysis and are disposed of in accordance with each laboratory's standard operating procedures. Samples received and analyzed by AST are held in archive for three (3) months after analysis and are then disposed of by AST without further or additional notice to Client. Client must make other written arrangements with AST if a longer hold time is required. 9. CLIENT DISCLOSURE: Upon execution of the Agreement, Client shall notify AST in writing of any hazardous substances or any condition, known or that should be known by Client, existing in, on, or near the site that might present a potential danger to human health, the environment, or equipment. Client agrees to provide continuing information as it becomes available to the Client in the future during the course of provision of services by AST. By virtue of entering into an Agreement or of providing services to Client, AST does not assume control of or responsibility for the site or the person in charge of the site, or undertake responsibility for reporting to any federal, state or local public agencies any conditions at the site that may present a potential danger to public health, safety or the environment. Client agrees to notify the appropriate federal, state or local public agencies as required by law, or otherwise to disclose, in a timely manner, any information that may be necessary to prevent any danger to health, safety, or the environment. 10. ENVIRONMENTAL INDEMNITY. In connection with toxic or hazardous substances or constituents, Client agrees to the maximum extent permitted by law to defend, hold harmless and indemnify the AST Indemnitees from and against any and all Claims, unless caused byAST's gross negligence or intentional misconduct, resulting from: (a) Client's violation of any federal, state or local statue, regulation or ordinance relating to the disposal of toxic or hazardous substances or constituents; (b) Client's undertaking of or arrangement for the handling, removal, treatment, storage, transportation or disposal of toxic or hazardous substance or constituents found or identified at the site; (c) Toxic or hazardous substance or constituents introduced at the site by Client or third persons before or after the completion of services herein; (d) Allegations that AST is a handler, generator, operator, treater or store, transporter, or disposer under the Resource Conservation and Recovery Act of 1976 as amended or any other similar federal, state or local regulation or law. If a third party brings suit or claim for damages against AST alleging personal injury or property damage from exposure to or release of toxic or hazardous substances or constituents at or from the project site before, during or after the performance of services by AST for Client, Client agrees to the maximum extent permitted by law to indemnify and hold the AST Indemnitees harmless from all such Claims and to pay on AST's behalf any Claims against the AST Indemnitees, including interest thereon, unless such damages are caused by AST's gross negligence or intentional misconduct. 11. EQUIPMENT CONTAMINATION. AST will endeavor to clean the AST laboratory and field equipment which may become contaminated in the conduct of the AST services. Occasionally, such equipment cannot be completely decontaminated because of the type of hazardous materials encountered. If this occurs, it will be necessary to dispose of the equipment in a manner similar to that indicated for hazardous samples, in which case Client agrees to pay to ASTthe fair market value of any such equipment (in addition to costs for consulting services performed). 12. DOCUMENTS. AST will furnish to Client the agreed upon number of reports and supporting documents. AST reserves the right to withhold the delivery of reports and supporting documents until payment has been received on outstanding invoices. These instruments of service are furnished exclusively for Client's use in connection with the project or work performed for Client pursuant to the Agreement and AST will not share with any third parties without the prior written consent of Client. All documents generated by AST pursuant to any Agreement or otherwise, including without limitation all intellectual property rights associated with such documents, shall remain the sole property of Client. If Client desires to provide any AST report to a third party that is not used for regulatory approvals and AST agrees in writing to provision of the AST report to such third party, Client shall obtain written acceptance from the third party to be bound by these terms and conditions prior to making the AST report available to such third party. Client agrees that all documents furnished to Client or Client's agents or designers, if not paid for, will be returned upon demand and will not be used by Client for any purpose whatsoever. Client further agrees that documents produced by AST pursuant to any Agreement or otherwise will not be used at any location orfor any project not expressly provided for in the related Agreement without AST's prior written approval. Client shall furnish documents or information reasonably within Client's control and deemed necessary by AST for proper performance of the AST services. AST may rely upon Client -provided documents in performing the services required under any Agreement, however, AST assumes no responsibility or liability for the accuracy of Client -provided documents. Client -provided documents will remain the property of the Client. Any unauthorized use or distribution of AST reports shall be at Client's sole risk and without liability to AST, and Client shall indemnify and hold AST Indemnitees harmless from any Claims related to or resulting from such use or distribution. 13. DISPUTE RESOLUTION. The parties agree to attempt to resolve any dispute without resort to litigation. Such dispute shall first be submitted to nonbinding mediation to be conducted in Morgan County, Alabama unless the parties mutually agree otherwise. In the event the parties are unable to reach a settlement of any dispute arising out of the services provided to Client by AST, then such disputes shall be settled by binding arbitration in Morgan County, Alabama by an arbitrator to be mutually agreed upon by the parties, and shall proceed in accordance with the rules of the Construction Industry Arbitration Rules of the American Arbitration Association then pertaining. If the parties cannot agree on a single arbitrator, then the arbitrator(s) shall be selected in accordance with the above referenced rules. If the claimant fails to prevail, then the claimant shall pay all costs of the party defending the claim, including reasonable attorney's fees. Notwithstanding the foregoing, this paragraph 13 shall not applyto any action instituted for the collection of any amount invoiced to Client for products sold, services rendered or similar matters for the collection of money due by Client to AST. 14. CONFIDENTIALITY. During provision of the services hereunder (the "Authorized Purpose") one Party may acquire the other Party's confidential information. "Confidential Information" means the proprietary or confidential information of each Party, relating in any way to the business and affairs of each Party, or proprietary or confidential information of a third party to which a Party has access that one Party (the "Receiving Party" may acquire from the other Party (the "Disclosing Party") as a result of discussions of work performed pursuant to any Agreement. Confidential Information includes any information marked as confidential, but also includes any information which the Parties in good faith and good conscience ought to treat as confidential. Each Party acknowledges that all Confidential Information is very valuable to each respective Party and shall maintain all Confidential Information in strict confidence. Each Party further agrees that such Confidential Information shall not be used or disclosed, except as follows: (i) each Party agrees to use Confidential Information only for the Authorized Purpose and agrees not to use any Confidential Information for the benefit of anyone other than the other Party to the Agreement; (ii) each Party agrees to limit access to Confidential Information to its officers, directors, employees and agents ("Personnel") who have a need to know the Confidential Information for the Authorized Purpose and shall instruct such Personnel to not disclose Confidential Information except as allowed under these Terms or the Agreement; and (iii) each Party agrees not to copy, reprint, duplicate or recreate the Confidential Information without the prior express written consent of the other Party. Unless otherwise required by contract or law, upon either termination of the applicable Agreement or of these Terms as set forth herein or upon written request by the Disclosing Party, the Receiving Party shall cease use and return or destroy all of the Disclosing Party's Confidential Information in the Receiving Party's possession or control. 15. SEVERABILITY. If a court of competent jurisdiction declares any term, condition or provision of these Terms or the Agreement invalid or unenforceable, the remainder of the Terms and the Agreement shall not be affected and shall remain in full force and effect. 16. SURVIVAL. All obligations arising prior to the termination of this Agreement and all provisions of these Terms and the Agreement allocating responsibility or liability between Client and AST (or with respect to warranty or indemnification) shall survive the completion of the services and the termination of these Terms and the Agreement. 17. INTEGRATION. These Terms and the Agreement, along with any attached documents and those incorporated herein constitute the entire Agreement between the parties and cannot be changed except by a written instrument signed by both parties. 18. GOVERNING LAW, JURISDICTION, and VENUE. All questions concerning the validity, interpretation and performance of these Terms or the Agreement will be governed by and decided in accordance with the laws of the State of Alabama, without regard to its conflict of law principles. The parties hereby submit and consent to the exclusive jurisdiction of the state or federal courts located within Morgan County, Alabama, and agree that all actions or proceedings relating to disputes arising between AST and Client (whether arising from the Agreement or otherwise) will be litigated in such courts (except as specifically noted herein), and each party waives any objection which it may have based on improper venue or forum non convenient to the conduct of any such action or proceeding in such court. The parties understand that they have a right or opportunity to litigate any dispute between them through a trial by judge or jury, but that they prefer to resolve any such dispute through arbitration instead of litigation, pursuant to the provisions of Paragraph 13, supra. For any action not subject to arbitration, the parties voluntarily and knowingly waive their right to have a trial by jury of any claims or disputes between the parties. 19. LIMITATION OF LIABILITY; EXCLUSIVE REMEDY. IN NO EVENT SHALL AST BE LIABLE TO CLIENT OR ANY THIRD PARTY UNDER THE AGREEMENT OR OTHERWISE FOR ANY INCIDENTAL, INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES. AST'S ENTIRE AND AGGREGATE LIABILITY FOR ALL CLAIMS MADE BY CLIENT ARISING FROM OR RELATING TO THE AGREEMENT OR OTHERWISE RELATING TO SERVICES PERFORMED BY AST FOR CLIENT SHALL NOT EXCEED THE FEES PAID TO AST BY CLIENT FOR THE PARTICULAR PROJECT OR PURCHASE ORDER FROM WHICH THE CLAIM ARISES (OR FOR WHICH THE CLAIM RELATES) . CLIENT'S EXCLUSIVE REMEDY FOR ANY BREACH OF THIS AGREEMENT SHALL BE RE -PERFORMANCE BY AST OF THE RESPECTIVE SERVICES. 20. FORCE MAJEURE. If performance of these Terms, the services, or the Agreement by either party is prevented by reason of any event or act which is beyond the reasonable control of the party affected (including, but not limited to, Acts of God, fire, flood, explosion, war, strike, embargo, epidemic, pandemic, government requirement or natural disaster), such party shall, upon giving prior written notice to the other party, be excused from such performance to the extent of such prevention, provided that the party so affected shall use its best efforts to avoid or remove such causes of nonperformance, and shall continue to perform under this Agreement with the utmost dispatch whenever such causes are removed. 21. TERMS OF SERVICE. These Terms shall apply to all AST Proposals and all other proposals, contracts, or Client documentation to which these Terms are attached or which are executed in connection with any AST Proposal, Agreement or otherwise in connection with the performance of services by AST for Client. All services provided by AST are expressly limited to and conditioned upon acceptance of these Terms, regardless of whether client contracts for AST services through any media or means, including but not limited to, written purchase orders, master service agreements, electronic orders via EDI, acknowledgements, confirmations, or other writings from Client to AST (collectively, "Purchase Orders"). Any additional or conflicting terms and conditions contained on, attached to or referenced by Client's Purchase Orders or other documentation, or other prior or later communication from Client to AST (including any changes to the pre-printed Terms by Client), shall have no effect on the purchase of any such services from AST and are expressly rejected by AST, and in such case the Terms as set forth herein shall exclusively control. Any agreement by AST to provide services to Client is limited to acceptance based on the Terms as set forth herein, without modification (now or in the future) by Client. All changes to the Terms in purchase or other documents generated by Client are hereby expressly rejected, and Client agrees that such changes shall be of no force or effect, without requirement of any further action or notice by AST of such rejection, such that the Terms as set forth herein shall control all dealings between the parties. HUTCHINSON UTILITIES COMMISSION��` Board Action Form �r�turscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: Unit 1 LM6000 Fuel Nozzles Presenter: Mike Gabrielson Agenda Item Type: Time Requested (Minutes): 5 New Business El Attachments': Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Every year 10 fuel nozzles are removed from Unit 1 and are sent in for inspection. Following cleaning, inspection & testing, it was determined that repairs need to be completed. All 10 fuel nozzles need major over hauls this year. Please see attached quote from Score Energy. Looking for Board approval of Requisition #008997 for $28,653.19. BOARD ACTION REQUESTED: PO 008997 Approval Fiscal Impact: 28,653.19 Included in current budget: Yes Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: MO. v HUTCHINSON UTILITIES a In + oni'int111 s i o n PURCHASE ORDER HUTCHINSON UTILITIES COMMISSION 225 MICHIGAN ST SE HUTCHINSON, MN 55350 Phone:320-587-4746 Fax:320-587-4721 SUPPLIER VENDOR: 006170 SCORE ENERGY LLC CO 6410B LANGFIELD RD HOUSTON, TX 77092 SHIP TO: Hutchinson Utilities Commission 175 Michigan Street SE Hutchinson, MN 55350 email: huc-ap@ci.hutchinson.mn.us DATE P.O. No. 01 /11 /2022 I 008997 Supllier Phone: (713) 574-9680 Fax: Email: ALVARO. RU IZ@SCORE-GROUP.COM Terms - N30 Ship Via - BILL TO: Hutchinson Utilities Commission 225 Michigan Street SE Hutchinson, MN 55350 email: huc-ap@ci.hutchinson.mn.us Item No. No. Description Qty Unit Due Date Unit Price Lead Time Ext. Amount 1 L314760-57 OVERHAUL FUEL NOZZLE - 9.00 EA 250.00 00 2,250.00 MFG. PART: W.O. NUM: NONE RCVD QTY & DATE: Acct: 1-01-402-554-0102 2,250.00 2 L31476P-58 OVERHAUL FUEL NOZZLE - 1.00 EA 250.00 00 250.00 MFG. PART: W.O. NUM: NONE RCVD QTY & DATE: Acct: 1-01-402-554-0102 250.00 3 MAJOR OVERHAUL L314760-57 FUEL NOZZLE - 9.00 EA 02/25/2022 2,281.00 45 20,529.00 MFG. PART: W.O. NUM: NONE RCVD QTY & DATE: Acct: 1-01-402-554-0106 20,529.00 4 FLANGE REPAIR L314760-57 FUEL NOZZLE - 9.00 EA 02/25/2022 150.00 45 1,350.00 MFG. PART: W.O. NUM: NONE RCVD QTY & DATE: Acct: 1-01-402-554-0106 1,350.00 5 MAJOR OVERHAUL L31476P58 FUEL NOZZLE - 1.00 EA 02/25/2022 2,281.00 45 2,281.00 MFG. PART: W.O. NUM: NONE RCVD QTY & DATE: Acct: 1-01-402-554-0106 2,281.00 6 FLANGE REPAIR L31476P58 FUEL NOZZLE - 1.00 EA 02/25/2022 150.00 45 150.00 MFG. PART: W.O. NUM: NONE RCVD QTY & DATE: Acct: 1-01-402-554-0106 150.00 Subtotal $26,810.00 Sales Tax (6.875%) $1,843.19 Freight $0.00 Total $28,653.19 Date Printed: 01/31/2022 Requisitioned By: mgabrielson Page: 1/1 www. s co re-e n e rg y. co m Score Energy LLC. Intelligent Gas Turbine Solutions- �I/�7%„Li41j ;.i Y 0 f i REV 1 08/04/2015 www. s co re-e n e rg y. c om CUSTOMER: Hutchinson Utilities TO: Mike Gabrielson SCORE JOB NUMBER 604211 FROM: Ben webb SCORE REF: NIK/BW/28030 Rev 2 CUSTOMER PO: 8997 REVISION: 1 (Nozzles Received) CUSTOMER REF: RFQ QUOTE DATE: 31 January 2022 Score Energy LLC. Intelligent Gas Turbine Solutions - Score Energy LLC 6410E Langfield Road Houston, Texas USA, 77092 Tel +1 713 574 9680 1 L31476P57 LM6000 D/F Nozzles Used 9 Clean, Inspection & Testing 250.00 2,250.00 2 L31476P58 LM6000 D/F Nozzles Used 1 10 Clean, Inspection & Testing Major Overhaul 250.00 2,281.00 250.00 22,810.00 10 Flange Repair 150.00 1,500.00 2 Weeks from quote approval $26,810.00 received in a used condition with visible carbon deposits and heat discolouration. swing cleaning, inspection & testing the following was noted: 10 Nozzles require Major Overhaul - Replacement of the outer gas shroud due to wear the outer diameter of the gas shroud & liquid fuel metering components due to wear & erosion. 10 Nozzles require Flange Rework - Due to excessive pitting / erosion evident on the support flange. me I Any fuel nozzle /s that have been identified as being affected by partial / complete internal circuitry blockages, will require to be subjected to intensified cleaning & / or machining processes, wing removal of any gas shrouds / liquid metering tips. No more than two additional cleaning cycles are covered by the charge above and should additonal cycles be required they will be charged at $209 nozzle per cycle. Should it become evident that the blockage can't be eliminated, it may be necessary to render the nozzle/s beyond economical repair (BER) or Scrap at a cost of $587 per nozzle. it defects that could deem any fuel nozzle BER/Scrap includes but not limited to - primary pipe cracking, primary / secondary adaptor braze failure, internal heat shield failure, internal cross passage porous / cracked nozzle support. Notification of any instances of this nature shall be communicated back to the client as early as possible. Notification of any instances of this nature shall be cated to yourselves as early as possible. Score Energy shall not be held responsible for providing any replacement nozzles without relevant charge to Hutchinson Utilities. Purchase Orders to be addressed to: Score Energy LLC, 6410E Langfield Road, Houston, Texas, USA, 77092 All pricing in USD ($) Quote validity: 30 days PraynaeW lorriia- 104. %, fwriior lo:vl upni....1, Poyn.... I by r.h.q .its —I orcaafwl,nbllo, he"ic Ir—st.r o0y Packaging : Score recommend your goods be shipped in wooden boxes of substantial build quality for adequate protection during shipment This quote does not cover return shipping costs. Should you have any specific return shipment requirements or if you wish for Score Energy to arrange shipping please advise so we can accommodate and re -quote where necessary. This quotation is contingent upon the Goods not being exported to any country or location which has an embargo placed upon it by either the UK, EU, UN or OSCE. Should a Certificate of Origin (COO) be required, an additional charge of $144.00 will apply for each individual certificate supplied. The recipient should advise which consignee address is required on the COO and whether or not a draft copy should be reviewed prior to obtaining the final copy from the relevant Chamber of Commerce. Any specific additional requirements should also be advised. It is also required that, the Purchaser advises the end country of destination at the time of placing the order and an end user declaration form may require to be filled out depending on the country advised Score shall not be held liable for any delay in the delivery of goods resulting from export controls compliance procedures. The Customer unconditionally warranting that the Goods and/or Services will not be exported to any country or location which has a current embargo or sanction placed upon it by either the UK, EU, UN or OSCE; The Customer advising [company] (if required) of the name of the ultimate end user of the Goods and/or Services and the ultimate country of destination. Dependant on the information provided, [company] may require that the Customer complete an End -User Undertaking and/or Stockist Undertaking; and The Customer waiving any claim against [company] for any delays in delivery of the Goods and/or Services which are caused due to export control compliance The transaction shall be governed by the Score Energy Limited General Terms and Conditions except where explicitly agreed otherwise. REV 1 08/04/2015 HUTCHINSON UTILITIES COMMISSION��` Board Action Form �rMtrrscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: Rescind Advertisement for Bid: In -Line Inspection of 12" Lateral Natural Gas Pipeline Presenter: John Webster Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments,: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Staff is requesting to rescind Advertisement for Bid to perform an in -line inspection of Hutchinson Utilities' 12" lateral natural gas pipeline. Based on the 2 bids received at the February 14 Bid Opening, both were well under the $175K and 1 of the bids did not have all the required documentation. Knowing the cost of the project will be under the $175K, Staff would like to go out for quotes for this project instead and by doing so may receive additional interest in the project. Staff is recommending rescinding the Advertisement for Bid and to go out for quotes instead. BOARD ACTION REQUESTED: Rescind Advertisement for Bid: In -Line Inspection of 12" Lateral Natural Gas Pipeline Fiscal Impact: Included in current budget:Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: HUTCHINSON UTILITIES COMMISSION��` Board Action Form �r�turscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: City of Hutchinson LED St Light Conversion Presenter: Dave Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments,: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: During our 2021 Strategic Planning process Hutchinson Utilities Commission agreed to fund materials and labor for the City of Hutchinson 8 year LED St Light conversion project. HUC will purchase and install an average of 275 LED fixtures per year. The purchase order is for the first year of LED fixtures that are scheduled for delivery in March. BOARD ACTION REQUESTED: Approve Req 8920 Fiscal Impact: 182,168.97 Included in current budget: Yes Budget Change: No PROJECT SECTION: Total Project Cost: Remaining Cost: MO. v HUTCHINSON UTILITIES a In + oni'int111 s i o n PURCHASE ORDER HUTCHINSON UTILITIES COMMISSION 225 MICHIGAN ST SE HUTCHINSON, MN 55350 Phone: 320-587-4746 SUPPLIER VENDOR: 001043 BORDER STATES ELECTRIC SUPP PO BOX 1450 NW 7235 MINNEAPOLIS, MN 55485 SHIP TO: Hutchinson Utilities Commission 175 Michigan Street SE Hutchinson, MN 55350 email: huc-ap@ci.hutchinson.mn.us Fax: 320-587-4721 DATE P.O. No. 10/25/2021 I **008920 Supllier Phone: (763) 497-6832 Fax: Email: Terms - N30 Ship Via - BILL TO: Hutchinson Utilities Commission 225 Michigan Street SE Hutchinson, MN 55350 email: huc-ap@hutchinsonmn.gov Item No. No. Description Qty Unit Due Date Unit Price Lead Time Ext. Amount 1 FIXTURE, LED, ACORN, GRANVILLE III, 3000 - 275.00 EA 01/23/2022 605.00 90 166,375.00 MFG. PART: W.O. NUM: NONE RCVD QTY & DATE: Acct: 1-02-402-596-0200 166,375.00 2 PHOTO EYE, TWIST LOCK,(FOR LED) - 275.00 EA 01/23/2022 14.82 90 4,075.50 MFG. PART: W.O. NUM: NONE RCVD QTY & DATE: Acct: 1-02-402-596-0200 4,075.50 Subtotal $170,450.50 Sales Tax (6.875%) $11,718.47 Freight $0.00 Total $182,168.97 Date Printed: 02/17/2022 Requisitioned By: dhunstad 1.,1. I)f,l'tot;e s La1"'a I.rur(� .1e o r d er 1" o r der 7wni :L,1.L,r,q :xjojorov.xL, Page: 1/1