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04-27-2022 HUCCPHUTCHINSON UTILITIES COMMISSION AGENDA REGULAR MEETING April 27, 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 4 of Exempt Handbook ii. Section 4 of Non -Exempt Handbook b. Approve Changes i. Travel Expenses — Exempt ii. Travel Expenses — Non -Exempt 7. UNFINISHED BUSINESS 8. NEW BUSINESS a. Approval of HTI/TDK Natural Gas Transportation and Commodity Purchase Agreement b. Approve Req #009124 - 3M Substation Relay and RTU Upgrades C. Review of 2021 Annual Benchmarking Report d. Approve Cost of Service & Rate Design Study with UFS e. Approve Disposal of Surplus Assets at Plant #1 - Units 3, 4 and 8 along with Diesel Fuel and Tank f. Approve Req #009144 — Purchase Replacement for Truck 130 g. Approve Req #009145 — Purchase Replacement for Truck 948 9. ADJOURN MINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, March 30, 2022 Call to order — 3:00 p.m. President Matt Cheney called the meeting to order. Members present: President Matt Cheney; Vice President Anthony Hanson; Secretary Don Martinez; Commissioner Robert Wendoh GM Jeremy Carter; Attorney Marc Sebora; Justin McGraw with Conway, Deuth & Schmiesing Audit Firm Absent: Commissioner Kathy Silvernale 1. Conflict of Interest 2. Approve Consent Agenda a. Approve Minutes b. Ratify Payment of Bills Motion by Commissioner Martinez, second by Commissioner Hanson to Approve the Consent Agenda. Motion carried unanimously. 3. Approve 2021 Financial Audit — Presentation by Justin McGraw Justin McGraw with Conway, Deuth & Schmiesing Audit Firm presented the 2021 Hutchinson Utilities Commission Independent Audit Report. Mr. McGraw also provided Financial statement packets that show more detail along with how the review went. Mr. McGraw stated the audit was conducted in accordance with the Generally Accepted Auditing Standards and Government Auditing Standards. The financial statements of the Commission are presented fairly in the firms' opinion. Mr. McGraw reviewed the Statement of Net Position. Assets did decrease in 2021 with liabilities also decreasing. Overall Net Position did increase in 2021, which is the trend over the last several years. Mr. McGraw reviewed the Cash and Investment Balances. Mr. McGraw reviewed the Electric and Natural Gas Divisions Operating Revenues and Expenses. Mr. McGraw summarized the Communications portion of the report and the General Recommendations that consist of upcoming Government Auditing Standards Board Statement No. 87, Leases; which will consist of Land and office equipment. Mr. McGraw stated the audit went well and the Staff was very helpful. Motion by Commissioner Hanson, second by Commissioner Wendorff to Approve the 2021 Financial Audit. Motion carried unanimously. 4. Approve Financial Statements Mr. Martig presented the Financial Statements. The main difference between February 2021 and February 2022 is the Power Cost Adjustment. For the Electric Division, Power Cost Adjustment in February 2022 brought in an additional $137k 1 for the month/$243K YTD; February 2021 brought in $468K for the month/$673K YTD. For the Natural Gas Division, there was no fuel cost adjustment for February 2022; February 2021 fuel cost adjustment totaled $1.1 M for the month. GM Carter noted in the Natural Gas Division the usage, CF's sold is the highest since 2013. Motion by Commissioner Wendorff, second by Commissioner Martinez to approve the financial statements. Motion carried unanimously. 5. Open Forum 6. Communication a. City Administrator —Matthew Jaunich — i. Ready for Construction Season; West of Rec Center, Storm water project, PD and Ice Arena. b. Divisions i. Dan Lang, Engineering Services Manager — Nothing to report ii. Dave Hunstad, Electric Transmission/Distribution Manager —Absent iii. Mike Gabrielson, Production Manager — 1. Emission Stack Testing at Plant 1 this week, Plant 2 will be next week. iv. John Webster, Natural Gas Division Director — Nothing to report v. Jared Martig, Financial Manager- 1. PILOT will be going up 2 % in 2023 c. Human Resources — Brenda Ewing- Absent /Angie Radke - i. Nothing to Report d. Legal — Marc Sebora — i. Nothing to Report e. General Manager — Jeremy Carter i. Business Updates were sent out. ii. Start looking at calendars- Would like to have a Cost of Service Study Workshop soon, process to start in June, final determination in August, presented at Council in Sept and then adjust rates for October if needed. Currently working on Bench marking ratios for Electric and Gas Divisions. iii. Legislative Update — This Legislative Session has been a little quieter. One of the topics is to reimburse customers along with municipalities through tax credits and direct municipal reimbursements from the polar vortex last year. iv. Climate Action Plan discussion 7. Policies a. Review Policies i. Section 3 of Exempt Handbook ii. Section 3 of Non -Exempt Handbook No changes recommended at this time. b. Approve Changes 2 i. Deferred Compensation — These are employee sponsored plans, Staff does not think it is applicable to complete a probation period ii. Purchasing Policy — Looking to add credit cards for the Production Crew Chiefs Motion by Commissioner Hanson, second by Commissioner Wendorff to Approve Changes to the Deferred Compensation and Purchasing Policy. Motion carried unanimously. 8. Unfinished Business 9. New Business a. Approve Requisition #009080 — 2022 Residential Meters Mr. Webster presented Approval of Requisition #009080 — 2022 Residential Meters. The Natural Gas Division has a need for additional residential diaphragm meters to replace the 1970's era meters that are being removed, retired, along with new construction. Although Groebner's is the lowest price, the delivery date is excessive. Staff is recommending ordering the meters through KGM. This is a 2022 budget item. Motion by Commissioner Martinez, second by Commissioner Wendorff to Approve Requisition #009080 — 2022 Residential Meters to KGM. Motion carried unanimously. b. Approve Requisition #009087 — Plant 1 Elevator Upgrades Mr. Gabrielson presented Approval of Requisition #009087 — Plant 1 Elevator Upgrades. Per the state inspection of Plant 1 elevator, it was found that there are several code requirements that are needed. The attached summary will bring the elevator up to current code. The annual safety inspections are covered under the TKE service contract that is now in place. This is a 2022 budget item. Motion by Commissioner Hanson, second by Commissioner Martinez to Approve Requisition #009087 — Plant 1 Elevator Upgrades. Motion carried unanimously. c. Approve Requisition #009088 - ChargePoint DC Fast Charging Station GM Carter presented Approval of Requisition #009088 — ChargePoint DC Fast Charging Station. HUC is looking into installing a second Electric Vehicle DC Fast Charging station for public use. The first ChargePoint DC Fast Charging Station that was installed in November 2020 is located by the river. Talking with the City, the best location for the second station looks to be in the Recreation Center parking lot. This is a 2022 budget item. 3 Motion by Commissioner Wendorff, second by Commissioner Hanson to Approve Requisition #009088 — ChargePoint DC Fast Charging Station. Motion carried unanimously. d. Approve Natural Gas Facilities Maintenance Agreement — City of Fairfax Mr. Webster presented the Natural Gas Facilities Maintenance Agreement with the City of Fairfax. The City of Fairfax has requested HUC to continue performing the maintenance of the natural gas transmission/distribution facilities. The term of the Agreement is for one year. The only changes to last year's contract are the dates. A motion by Commissioner Martinez, second by Commissioner Hanson to Approve the Natural Gas Facilities Maintenance Agreement — City of Fairfax. Motion carried unanimously. e. Request to Sell 5MVA Transformer for Generator #3 GM Carter presented the Request to Sell 5MVA Transformer for Generator #3. Staff will be decommissioning Generator #3 at Plant 1 and the existing 5MVA step up transformer that was used for the generator will no longer be needed. The transformer is only 2 years old and still has warranty left. Staff would like to try and sell direct and will advertise the transformer to MMUA, APPA, and MREA members. Staff will look to recover the initial purchase costs and sell the transformer for $96K. A motion by Commissioner Hanson, second by Commissioner Wendorff to Approve the Sale of the 5MVA Transformer for Generator #3. Motion carried unanimously. 10. Adjourn There being no further business, a motion by Commissioner Wendorff , second by Commissioner Martinez to adjourn the meeting at 3:49p.m. Motion carried unanimously. ATTEST: Matt Cheney, President 12 Don Martinez, Secretary 04/21/2022 10:14 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 03/24/2022 - 04/21/2022 Payee Description Account Dept Page 1/28 Amount Fund: 1 ELECTRIC 03/28/2022 GEN 1065(E)* ALERUS HEALTH INSURANCE 401-926- 08 388.12 03/29/2022 GEN 1045(E) ALERUS HEALTH INSURANCE 401-546- 01 4,023.50 03/29/2022 GEN 1046(E) MISO Deferred Energy Cost - Miso 174-000- 00 16,288.24 03/29/2022 GEN 1047(E) MISO Deferred Energy Cost - Miso 174-000- 00 890.66 03/29/2022 GEN 1068(E) ALERUS HEALTH INSURANCE 401-556- 03 215.00 03/31/2022 GEN 76140* 8BITSTUDIO DEP REFUND/APPLIED 235-000- 00 162.50 03/31/2022 GEN 761414 ACE HARDWARE Sales Tax Receivable - Replace 186-000- 00 1.81 Accessory Plant - Materials 402-554- 01 26.36 Maintenance Other - Materials 402-554- 01 7.54 Maintenance Other - Materials 402-554- 01 5.32 HECK GEN 76141 TOTAL FOR FUND 1: 41.03 03/31/2022 GEN 76142* ALEC WESTLUND DEP REFUND/APPLIED 235-000- 00 130.00 03/31/2022 GEN 76143* ALIYA EMME DEP REFUND/APPLIED 235-000- 00 39.00 03/31/2022 GEN 76144* ANGELA ESCANDON DEP REFUND/APPLIED 235-000- 00 139.75 03/31/2022 GEN 76145 ANIXTER INC Burndy ring connector. 107-362- 00 1,081.50 Sales Tax Receivable - New 186-000- 00 74.35 HECK GEN 76145 TOTAL FOR FUND 1: 1,155.85 03/31/2022 GEN 76146* APR INC DEP REFUND/APPLIED 235-000- 00 65.00 03/31/2022 GEN 76147* APR INC DEP REFUND/APPLIED 235-000- 00 325.00 03/31/2022 GEN 76149 BERKLEY RISK ADMINSTRATORS COMPANY Prepaid Insurance 174-000- 00 152.09 04/21/2022 10:14 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES User: JMartig CHECK DATE FROM 03/24/2022 - 04/21/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Fund: 1 ELECTRIC 03/31/2022 GEN 7615014 BORDER STATES ELECTRIC SUPPLY TERMINAL BLOCK, 3 PLACE, "COVERED" CSB 154-000- 00 FUSE, ACORN, 5 AMP, GLRS 154-000- 00 FUSE HOLDER, SHR BUSS, GODS 154-000- 00 BLADE, RECIP SAW, LENX 9114R, 9" 14T 154-000- 00 Sales Tax Receivable - New 186-000- 00 Sales Tax Receivable - New 186-000- 00 HECK GEN 76150 TOTAL FOR FUND 1: 03/31/2022 GEN 76151* BRADLEY KASID OR TAMARA KASID DEP REFUND/APPLIED 235-000- 00 03/31/2022 GEN 76152* BRENT PETERSON DEP REFUND/APPLIED 235-000- 00 03/31/2022 GEN 76153* CAROL OLSON DEP REFUND/APPLIED 235-000- 00 03/31/2022 GEN 76154* CAROLINE WELSAND OR ATHENA CORDOVA DEP REFUND/APPLIED 235-000- 00 03/31/2022 GEN 76155*4 CINTAS CORPORATION 4470 Uniforms & Laundry 401-550- 01 Uniforms & Laundry 401-550- 01 UNIFORMS & LAUNDRY 401-588- 02 UNIFORMS & LAUNDRY 401-588- 02 HECK GEN 76155 TOTAL FOR FUND 1: 03/31/2022 GEN 76156 CORE & MAIN Meter - Materials 401-586- 02 03/31/2022 GEN 76157 CORY COX OVERPAYMENTS 142-000- 00 03/31/2022 GEN 76158* COURTNEY TESCH OR JAKE TESCH DEP REFUND/APPLIED 235-000- 00 03/31/2022 GEN 76159 CREEKSIDE SOILS Line - Materials 402-594- 02 03/31/2022 GEN 76160* ELDINE ERICKSON DEP REFUND/APPLIED 235-000- 00 03/31/2022 GEN 76161 ELIZABETH SCHMIDT OVERPAYMENTS 142-000- 00 03/31/2022 GEN 761624 FASTENAL COMPANY Sales Tax Receivable - Replace 186-000- 00 Page 2/28 Amount 475.37 29.92 4.56 288.00 35.05 19.80 852.70 195.00 58.50 130.00 48.75 474.50 474.50 301.76 1,900.00 80.26 136.50 52.16 35.75 278.42 1.33 04/21/2022 10:14 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee Fund: 1 ELECTRIC CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 03/24/2022 - 04/21/2022 Description 03/31/2022 GEN 76163* FIRST CHOICE FOOD & BEVERAGE 03/31/2022 GEN 761644 GRAYBAR ELECTRIC COMPANY INC 03/31/2022 GEN 76166* GUILLERMO SILVA OR AILIA SOTO 03/31/2022 GEN 76167* HARTUNG PARTNERSHIP 03/31/2022 GEN 76168* HUTCHFIELD SERVICES INC 03/31/2022 GEN 76169* JAMIN LEHTO 03/31/2022 GEN 76170* JANNETTE LUTHENS 03/31/2022 GEN 76171* JENNIFER GULER 03/31/2022 GEN 76172* JOY BENGTSON 03/31/2022 GEN 76173 KHADAR OSMAN 03/31/2022 GEN 76176 LOCATORS & SUPPLIES INC Page 3/28 Account Dept Amount Accessory Plant - Materials 402-554- 01 19.40 HECK GEN 76162 TOTAL FOR FUND 1: 20.73 BREAKROOM/RECOGNITION BANQUET 401-926- 08 171.00 Sales Tax Receivable - Replace 186-000- 00 66.41 Sales Tax Receivable - Replace 186-000- 00 0.29 Alpha Technologies power supply 402-554- 01 839.29 Alpha Technologies power supply 402-554- 01 3.71 HECK GEN 76164 TOTAL FOR FUND 1: 909.70 DEP REFUND/APPLIED 235-000- 00 130.00 DEP REFUND/APPLIED 235-000- 00 299.00 Grounds - Outside Services 401-935- 08 1,168.37 DEP REFUND/APPLIED 235-000- 00 58.50 DEP REFUND/APPLIED 235-000- 00 178.75 DEP REFUND/APPLIED 235-000- 00 211.25 DEP REFUND/APPLIED 235-000- 00 48.75 OVERPAYMENTS 142-000- 00 95. 96 RAIN COAT, NASCO, NOMEX 1503JFY, 2XL 401-550- 01 125.00 RAIN COAT, NASCO, NOMEX 1503JFY, 2XL 401-550- 01 7.81 RAIN PANTS, NASCO, NOMEX 1501TFY, 2XL 401-550- 01 84.00 RAIN PANTS, NASCO, NOMEX 1501TFY, 2XL 401-550- 01 5.25 Uniforms & Laundry 401-550- 01 15.33 Uniforms & Laundry 401-550- 01 0.96 04/21/2022 10:14 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 03/24/2022 - 04/21/2022 Payee Description Account Dept Page 4/28 Amount Fund: 1 ELECTRIC HECK GEN 76176 TOTAL FOR FUND 1: 238.35 03/31/2022 GEN 76177* LUDOWESE, JOHN Cip - Residential 401-916- 07 200.00 03/31/2022 GEN 76178* MARCO TECHNOLOGIES, LLC Office Supplies 401-921- 08 564.52 03/31/2022 GEN 76179* MIKE LINDER OR JANE LINDER GET REFUND/APPLIED 235-000- 00 97.50 03/31/2022 GEN 76180* MIKE OTTESON GET REFUND/APPLIED 235-000- 00 39.00 03/31/2022 GEN 76181* MINNESOTA COMMERCE DEPT Doc - Cip Assessment 401-916- 07 5,252.87 03/31/2022 GEN 76183* NATHAN DUB GET REFUND/APPLIED 235-000- 00 162.50 03/31/2022 GEN 76185*4 NORTHERN STATES SUPPLY INC Line - Materials 401-581- 02 27.31 03/31/2022 GEN 76187* PAM LUEDTKE GET REFUND/APPLIED 235-000- 00 110.50 03/31/2022 GEN 76188 PEAKER SERVICES INC Water Injection Valve Calibration 402-554- 01 1,208.90 Water Injection Valve Calibration 402-554- 01 246.73 HECK GEN 76188 TOTAL FOR FUND 1: 1,455.63 03/31/2022 GEN 761894 QUADE ELECTRIC Sales Tax Receivable - Replace 186-000- 00 12.86 Accessory Plant - Materials 402-554- 01 182.82 Maintenance Other - Materials 402-554- 01 287.14 HECK GEN 76189 TOTAL FOR FUND 1: 482.82 03/31/2022 GEN 76190 RESCO TRANS, 225 KVA PAD, 3PH 480/277 154-000- 00 10,825.00 Sales Tax Receivable - New 186-000- 00 852.48 HECK GEN 76190 TOTAL FOR FUND 1: 11,677.48 04/21/2022 10:14 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES User: JMartig CHECK DATE FROM 03/24/2022 - 04/21/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Fund: 1 ELECTRIC 03/31/2022 GEN 76191 RIDGEWATER COLLEGE Cip- Commercial 401-916- 07 Cip- Commercial 401-916- 07 HECK GEN 76191 TOTAL FOR FUND 1: 03/31/2022 GEN 76193* RONALD EDGE DEP REFUND/APPLIED 235-000- 00 03/31/2022 GEN 76194*4 RUNNING'S SUPPLY INC Sales Tax Receivable - Replace 186-000- 00 Accessory Plant - Materials 402-554- 01 HECK GEN 76194 TOTAL FOR FUND 1: 03/31/2022 GEN 76195* SAMANTHA DAAK OR FERNANDO ZUNIGA DEP REFUND/APPLIED 235-000- 00 03/31/2022 GEN 76196 SCORE ENERGY LLC CO L314760-57 Overhaul Fuel Nozzle 402-554- 01 L314760-57 Overhaul Fuel Nozzle 402-554- 01 L31476P-58 Overhaul Fuel Nozzle 402-554- 01 L31476P-58 Overhaul Fuel Nozzle 402-554- 01 Major Overhaul L314760-57 Fuel Nozzle 402-554- 01 Major Overhaul L314760-57 Fuel Nozzle 402-554- 01 Flange Repair L314760-57 Fuel Nozzle 402-554- 01 Flange Repair L314760-57 Fuel Nozzle 402-554- 01 Major Overhaul L31476P58 Fuel Nozzle 402-554- 01 Major Overhaul L31476P58 Fuel Nozzle 402-554- 01 Flange Repair L31476P58 Fuel Nozzle 402-554- 01 Flange Repair L31476P58 Fuel Nozzle 402-554- 01 Generator 41 Outside Services 402-554- 01 HECK GEN 76196 TOTAL FOR FUND 1: 03/31/2022 GEN 76197* SHARON BECK DEP REFUND/APPLIED 235-000- 00 03/31/2022 GEN 76198* SHERRY ANDERSON DEP REFUND/APPLIED 235-000- 00 03/31/2022 GEN 76200* SPENCER MATTSON DEP REFUND/APPLIED 235-000- 00 Page 5/28 Amount 2,000.00 330.00 2,330.00 162.50 6.84 86.85 93.69 123.50 2,250.00 9.65 250.00 1.07 20,529.00 88.07 1,350.00 5.79 2,281.00 9.78 150.00 0.64 45.50 162.50 78.00 04/21/2022 10:14 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES Page 6/28 User: JMartig CHECK DATE FROM 03/24/2022 - 04/21/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Amount Fund: 1 ELECTRIC 03/31/2022 GEN 76201* STEPHANIE FRAME DEP REFUND/APPLIED 235-000- 00 123.50 03/31/2022 GEN 76202* STEVE JORDAN DEP REFUND/APPLIED 235-000- 00 78.00 03/31/2022 GEN 762044 SWANSON FLO-SYSTEMS CO Sales Tax Receivable - Replace 186-000- 00 3.15 Sales Tax Receivable - Replace 186-000- 00 2.22 ST00585 Eaton Viton O-Ring 402-554- 01 25.54 ST00585 Eaton Viton O-Ring 402-554- 01 18.03 HECK GEN 76204 TOTAL FOR FUND 1: 48.94 03/31/2022 GEN 76205 TK ELEVATOR CORPORATION Maint Power Prod Plant - Build 402-554- 01 25,783.13 03/31/2022 GEN 76206* TOM WURZBERGER DEP REFUND/APPLIED 235-000- 00 52.00 03/31/2022 GEN 76207* TOM WURZBERGER DEP REFUND/APPLIED 235-000- 00 78.00 03/31/2022 GEN 76209* TYLER COX DEP REFUND/APPLIED 235-000- 00 195.00 03/31/2022 GEN 76210* UNITED PARCEL SERVICE MAIL SERVICES - UPS, FEDEX 401-921- 08 50.78 03/31/2022 GEN 76211* VERIZON WIRELESS TELEPHONE 401-921- 08 1,074.35 03/31/2022 GEN 76212 WILLIAM O'HARA OR TAMI O'HARA OVERPAYMENTS 142-000- 00 14. 52 03/31/2022 GEN 76214* ZACHARY GASSMAN DEP REFUND/APPLIED 235-000- 00 65.00 03/31/2022 GEN 76215* ZEE SERVICE COMPANY Misc Other - Materials 401-935- 08 106.45 04/04/2022 GEN 1061(E)* ARGUS DENTAL DENTAL INSURANCE -COBRA 242-000- 00 626.07 DENTAL INSURANCE-80o ELEC 242-000- 00 3,901.08 HECK GEN 1061(E) TOTAL FOR FUND 1: 4,527.15 04/04/2022 GEN 1062(E)* CITIZENS BANK Office Supplies 401-921- 08 79.48 04/21/2022 10:14 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK Payee DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 03/24/2022 - 04/21/2022 Description Account Dept Page 7/28 Amount Fund: 1 ELECTRIC 04/04/2022 GEN 1063(E)* PAY MENTECH collection - Materials 401-903- 06 2,101.83 04/05/2022 GEN 1048(E) MISO Deferred Energy Cost - Miso 174-000- 00 21,383.90 04/05/2022 GEN 1049(E) MISO Deferred Energy Cost - Miso 174-000- 00 869.98 04/05/2022 GEN 1071(E) ALERUS HEALTH INSURANCE 401-546- 01 340.19 04/11/2022 GEN 1056(E)* INVOICE CLOUD collection - Materials 401-903- 06 2,301.12 04/12/2022 GEN 1050(E) MISO Deferred Energy Cost - Miso 174-000- 00 860.15 04/16/2022 GEN 1069(E)*4 VISA Station Equipment (Switchgear, 101-362- 00 160.00 STRUCTURES & IMPROVEMENTS (BUI 107-341- 00 72.06 Sales Tax Receivable - Replace 186-000- 00 5.67 Training - Expense 401-546- 01 16.51 Supplies 401-550- 01 13.30 Supplies 401-550- 01 48.06 Uniforms & Laundry 401-550- 01 59.99 Maint Power Prod Plant - Build 402-554- 01 143.57 Generator 41 Material 402-554- 01 190.00 GENERATOR 45 MATERIAL 123.82 402-554- 01 1,696.19 ACCESSORY PLANT - MATERIALS 17.60 402-554- 01 241.04 ACCESSORY PLANT - MATERIALS 1.49 402-554- 01 21.67 ACCESSORY PLANT - MATERIALS 60.08 402-554- 01 822.94 ACCESSORY PLANT - MATERIALS 12.50 402-554- 01 171.29 ACCESSORY PLANT - MATERIALS 8.20 402-554- 01 112.36 Vehicles - Material 402-554- 01 2,787.43 Maintenance Other - Materials 402-554- 01 214.74 Maintenance Other - Materials 402-554- 01 366.29 MAINTENANCE OTHER - MATERIALS 402-554- 01 102.74 Maintenance Other - Materials 402-554- 01 456.55 Maintenance Other - Materials 402-554- 01 577.84 Outside Services 402-554- 01 579.84 Line - Materials 401-581- 02 (76.22) Line - Materials 401-581- 02 97.06 04/21/2022 10:14 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES Page 8/28 User: JMartig CHECK DATE FROM 03/24/2022 - 04/21/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Amount Fund: 1 ELECTRIC Line - Materials 401-581- 02 27.01 Line - Materials 401-581- 02 22.28 Line - Materials 401-581- 02 225.46 Materials 401-588- 02 628.44 Materials 401-588- 02 1,907.37 Uniforms & Laundry 401-588- 02 169.00 Power Equipment - Materials 402-598- 02 3,195.00 Power Equipment - Materials 402-598- 02 5.80 Other Equipment - Materials 402-598- 02 120.46 It Admin And Support 401-921- 08 43.12 Training - Expense 401-930- 08 171.75 Training - Expense 401-930- 08 37.50 Training - Expense 401-930- 08 1,346.25 Grounds - Materials 401-935- 08 7.25 Grounds - Materials 401-935- 08 26.13 HECK GEN 1069(E) TOTAL FOR FUND 1: 16,813.74 04/18/2022 GEN 1053(E) MISO SCHEDULE 26 401-565- 03 11,805.49 SCHEDULE 26A 401-565- 03 34,370.87 SCHEDULE 26E 401-565- 03 1.06 HECK GEN 1053(E) TOTAL FOR FUND 1: 46,177.42 04/18/2022 GEN 1054(E) MISO SCHEDULE 1 401-565- 03 3,061.30 SCHEDULE 2 401-565- 03 8,933.IS SCHEDULE 26 401-565- 03 159.25 SCHEDULE 26A 401-565- 03 233.38 SCHEDULE 10 401-565- 03 58.72 HECK GEN 1054(E) TOTAL FOR FUND 1: 12,445.83 04/18/2022 GEN 1055(E) MISO SCHEDULE 10 401-565- 03 6,050.04 04/19/2022 GEN 1072(E) ALERUS HEALTH INSURANCE 401-546- 01 5,271.82 04/20/2022 GEN 1057(E)14 BP CANANDA ENERGY SOLUTIONS GENERATOR 41 NATURAL GAS 401-547- 01 5, 984.76 Generator 41 Aux Boiler 401-547- 01 199.94 GENERATOR 45 NATURAL GAS 401-547- 01 5, 044.64 04/21/2022 10:14 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK Payee DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 03/24/2022 - 04/21/2022 Description Account Dept Page 9/28 Amount Fund: 1 ELECTRIC GENERATOR 46 NATURAL GAS 401-547- 01 5, 889. 54 Generator 47 Natural Gas 401-547- 01 5,571.28 Utility Expenses - Water/Waste 401-930- 08 2,517.21 HECK GEN 1057(E) TOTAL FOR FUND 1: 25,207.37 04/20/2022 GEN 1058(E)*4 BP CANANDA ENERGY SOLUTIONS GENERATOR 41 NATURAL GAS 401-547- 01 484.45 GENERATOR 45 NATURAL GAS 401-547- 01 74.53 GENERATOR 46 NATURAL GAS 401-547- 01 90.83 Generator 47 Natural Gas 401-547- 01 90.83 Generator 49 Natural Gas 401-547- 01 232.91 HECK GEN 1058(E) TOTAL FOR FUND 1: 973.55 04/20/2022 GEN 1059(E) MRES Purchased Power 401-555- 02 860,493.92 04/20/2022 GEN 1064(E)* MINNESOTA REVENUE STATE SALES TAX 242-000- 00 54, 124.00 City Sales Tax 242-000- 00 3,908.00 COUNTY SALES TAX 242-000- 00 3, 908.00 HECK GEN 1064(E) TOTAL FOR FUND 1: 61,940.00 04/21/2022 GEN 76216 ACE HARDWARE Maintenance Other - Materials 402-554- 01 14.95 04/21/2022 GEN 76217 ACE HARDWARE Line - Materials 401-581- 02 3.09 04/21/2022 GEN 762194 ACE HARDWARE Sales Tax Receivable - Replace 186-000- 00 1.24 Accessory Plant - Materials 402-554- 01 18.04 HECK GEN 76219 TOTAL FOR FUND 1: 19.28 04/21/2022 GEN 762204 ACE HARDWARE Sales Tax Receivable - Replace 186-000- 00 0.55 Accessory Plant - Materials 402-554- 01 7.95 HECK GEN 76220 TOTAL FOR FUND 1: 8.50 04/21/2022 GEN 762214 ADVANCED PROCESS SOLUTIONS VALVE, AUTOMATIC WATER INJECTION VALVE 154-000- 00 536.00 FREIGHT 401-588- 02 42.73 HECK GEN 76221 TOTAL FOR FUND 1: 578.73 04/21/2022 10:14 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 03/24/2022 - 04/21/2022 Payee Description Account Dept Page 10/28 Amount Fund: 1 ELECTRIC 04/21/2022 GEN 76222 ALLIED ELECTRONICS INC E-stop switch 402-554- 01 54.14 E-stop switch 402-554- 01 18.72 E-stop switch shroud 402-554- 01 15.27 E-stop switch shroud 402-554- 01 5.28 HECK GEN 76222 TOTAL FOR FUND 1: 93.41 04/21/2022 GEN 76223 ALLIED ELECTRONICS INC Moxa Mgate MB3170 402-554- 01 366.04 Moxa Mgate MB3170 402-554- 01 14.40 Ethernet patch cord - crossover 402-554- 01 15.19 Ethernet patch cord - crossover 402-554- 01 0.60 HECK GEN 76223 TOTAL FOR FUND 1: 396.23 04/21/2022 GEN 76224 AMY SCHULL OVERPAYMENTS 142-000- 00 93.36 04/21/2022 GEN 76225 ANNA UPEGUI OVERPAYMENTS 142-000- 00 72.51 04/21/2022 GEN 76226 ARIANNA KAISER OVERPAYMENTS 142-000- 00 32. 92 04/21/2022 GEN 76227 BENJAMIN LAWRENCE OR ELIZ ROSENAU OVERPAYMENTS 142-000- 00 56.48 04/21/2022 GEN 76228 BERKLEY RISK ADMINSTRATORS COMPANY WORKERS COMPENSATION 401-546- 01 225.34 04/21/2022 GEN 76229 BOND TRUST SERVICES CORPORATION Bond Service Fees 427-000- 08 475.00 04/21/2022 GEN 76232 BORDER STATES ELECTRIC SUPPLY FUSE HOLDER, SHR BUSS, GODS 154-000- 00 45.60 Sales Tax Receivable - Replace 186-000- 00 3.14 HECK GEN 76232 TOTAL FOR FUND 1: 48.74 04/21/2022 GEN 76233 BORDER STATES ELECTRIC SUPPLY Line - Materials 401-581- 02 191.31 04/21/2022 GEN 7623614 BORDER STATES ELECTRIC SUPPLY BLADE, RECIP SAW, LENX 614G, 6" 14T 154-000- 00 130.50 Sales Tax Receivable - New 186-000- 00 8.97 HECK GEN 76236 TOTAL FOR FUND 1: 139.47 04/21/2022 GEN 76237 BORDER STATES ELECTRIC SUPPLY H-TAP, COVERS, SMALL BLACKBURN C5 154-000- 00 3.10 Sales Tax Receivable - New 186-000- 00 0.21 04/21/2022 10:14 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 03/24/2022 - 04/21/2022 Description Account Dept Page 11/28 Amount Fund: 1 ELECTRIC HECK GEN 76237 TOTAL FOR FUND 1: 3.31 04/21/2022 GEN 76239 CENEX Cip- Commercial 401-916- 07 1,365.12 04/21/2022 GEN 76241 CHARLES FREITAG OR DIANE FREITAG OVERPAYMENTS 142-000- 00 698.16 04/21/2022 GEN 76242*4 CINTAS CORPORATION 4470 Uniforms & Laundry 401-550- 01 623.14 UNIFORMS & LAUNDRY 401-588- 02 382.25 HECK GEN 76242 TOTAL FOR FUND 1: 1,005.39 04/21/2022 GEN 76243*4 CINTAS CORPORATION 4470 Uniforms & Laundry 401-550- 01 462.17 UNIFORMS & LAUNDRY 401-588- 02 288.08 HECK GEN 76243 TOTAL FOR FUND 1: 750.25 04/21/2022 GEN 76244*4 CINTAS CORPORATION 4470 Uniforms & Laundry 401-550- 01 496.56 UNIFORMS & LAUNDRY 401-588- 02 288.08 HECK GEN 76244 TOTAL FOR FUND 1: 784.64 04/21/2022 GEN 76245*4 CITY OF HUTCHINSON Accounts Payable To City Of Hu 234-000- 00 323,385.75 IT ADMIN AND SUPPORT 750 401-921- 08 19, 769. 44 LEGAL SERVICES 75/25 401-923- 08 7,875.00 HUMAN RESOURCES SERVICES 75/25 401-923- 08 6,201.56 HECK GEN 76245 TOTAL FOR FUND 1: 357,231.75 04/21/2022 GEN 76246 CITY OF HUTCHINSON Vehicles - Material 401-921- 08 147.15 04/21/2022 GEN 76247*4 CITY OF HUTCHINSON VEHICLE/EQUIPMENT FUEL -POWER 401-550- 01 280.04 VEHICLES/EQUIPMENT FUEL-ELEC 401-588- 02 1,691. 90 VEHICLES/EQUIPMENT FUEL-ADMIN 55/45 401-935- 08 82.93 HECK GEN 76247 TOTAL FOR FUND 1: 2,054.87 04/21/2022 GEN 76248* CITY OF HUTCHINSON IT ADMIN AND SUPPORT 750 401-921- 08 11,584.76 04/21/2022 GEN 76249 CITY OF HUTCHINSON Waste Disposal 401-550- 01 53.48 04/21/2022 GEN 76250 CITY OF HUTCHINSON Waste Disposal 401-550- 01 312.46 04/21/2022 10:14 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 03/24/2022 - 04/21/2022 Payee Description Account Dept Page 12/28 Amount Fund: 1 ELECTRIC 04/21/2022 GEN 76251 CITY OF HUTCHINSON Line - Materials 402-594- 02 8.66 04/21/2022 GEN 76252 CITY OF HUTCHINSON Generator 41 Water & Sewer 401-547- 01 168.69 04/21/2022 GEN 76253 CITY OF HUTCHINSON Generator 41 Water & Sewer 401-547- 01 143.77 04/21/2022 GEN 76254* CITY OF HUTCHINSON Utility Expenses - Water/Waste 401-930- 08 14.70 04/21/2022 GEN 76255*4 CITY OF HUTCHINSON Waste Disposal 401-550- 01 527.53 Utility Expenses - Water/Waste 401-930- 08 499.02 HECK GEN 76255 TOTAL FOR FUND 1: 1,026.55 04/21/2022 GEN 76256* CONWAY DEUTH & SCHMIESING PLLP MISC SERVICES 401-923- 08 4, 925.00 04/21/2022 GEN 76257 CORE & MAIN Meters (Boxes) 107-370- 00 1,900.00 04/21/2022 GEN 76258 CREEKSIDE SOILS Materials 401-588- 02 142.14 04/21/2022 GEN 76259 CROW RIVER GLASS COMPANY Accessory Plant - Materials 402-554- 01 4.00 04/21/2022 GEN 76260 DARIN PACKARD OVERPAYMENTS 142-000- 00 69.77 04/21/2022 GEN 76261 DARREN BAILEY OVERPAYMENTS 142-000- 00 61.22 04/21/2022 GEN 762624 DELMAR COMPANY GASKET, FLEX 4" 6004 154-000- 00 28.80 GASKET, FLEX 2 1/2" 1504 154-000- 00 27.30 GASKET, FLEX 2" 1504 154-000- 00 6.20 GASKET, FLEX 1 1/2" 6004 154-000- 00 14.85 FREIGHT 401-588- 02 22.94 HECK GEN 76262 TOTAL FOR FUND 1: 100.09 04/21/2022 GEN 762634 DELMAR COMPANY GASKET, FLEX 4" 6004 154-000- 00 57.60 FREIGHT 401-588- 02 22.04 HECK GEN 76263 TOTAL FOR FUND 1: 79.64 04/21/2022 GEN 76264 DGR ENGINEERING Plant 41 Relay and RTU Upgrades 107-362- 00 8,174.00 04/21/2022 10:14 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 03/24/2022 - 04/21/2022 Payee Description Account Dept Page 13/28 Amount Fund: 1 ELECTRIC Station Equipment (Switchgear, 107-362- 00 26.00 HECK GEN 76264 TOTAL FOR FUND 1: 8,200.00 04/21/2022 GEN 76265 DGR ENGINEERING Outside Services 401-567- 03 9,086.50 04/21/2022 GEN 76268 ENDRESS+HAUSER C/O MILLER MECH. THERMOMETER, RID, TR10, 154-000- 00 755.58 THERMOMETER, RID, TR10, 154-000- 00 18.34 Sales Tax Receivable - New 186-000- 00 61.06 Sales Tax Receivable - New 186-000- 00 1.48 HECK GEN 76268 TOTAL FOR FUND 1: 836.46 04/21/2022 GEN 762694 FASTENAL COMPANY Sales Tax Receivable - Replace 186-000- 00 0.76 Accessory Plant - Materials 402-554- 01 10.48 HECK GEN 76269 TOTAL FOR FUND 1: 11.24 04/21/2022 GEN 76270 FOX, SHEILA Cip - Residential 401-916- 07 25.00 04/21/2022 GEN 76271 GOODIN COMPANY Accessory Plant - Materials 402-554- 01 438.35 Accessory Plant - Materials 402-554- 01 (140.00) HECK GEN 76271 TOTAL FOR FUND 1: 298.35 04/21/2022 GEN 76272 GOODIN COMPANY Accessory Plant - Materials 402-554- 01 275.86 04/21/2022 GEN 7627314 GOPHER STATE ONE -CALL INC Line - Materials 401-581- 02 45.90 04/21/2022 GEN 76276 HARBOR FREIGHT OVERPAYMENTS 142-000- 00 971.89 04/21/2022 GEN 76277 HARBOR FREIGHT OVERPAYMENTS 142-000- 00 2,732.07 04/21/2022 GEN 76278 HEARING HELP AUDIOLOGY CLINIC Drug And Alcohol Testing - Lab 401-546- 01 35.00 04/21/2022 GEN 76279* HILLYARD/HUTCHINSON Grounds - Materials 401-935- 08 129.73 04/21/2022 GEN 76280* HILLYARD/HUTCHINSON Grounds - Materials 401-935- 08 54.78 04/21/2022 GEN 76281* HUTCHINSON LEADER Cip - Marketing 401-916- 07 588.75 04/21/2022 10:14 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES User: JMartig CHECK DATE FROM 03/24/2022 - 04/21/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Fund: 1 ELECTRIC 04/21/2022 GEN 76282 HUTCHINSON WHOLESALE SUPPLY CO Vehicles - Material 04/21/2022 GEN 76284* INNOVATIVE OFFICE SOLUTIONS 04/21/2022 GEN 76286 JESSE GEROW 04/21/2022 GEN 76287 JOHANSEN, JULIE 04/21/2022 GEN 76288 KENDALL RANNOW 04/21/2022 GEN 76289 KWIK TRIP INC 04/21/2022 GEN 76290 LESLIE WILTSCHECK 04/21/2022 GEN 76291 LISA ROSENAU 04/21/2022 GEN 76292 LOCATORS & SUPPLIES INC 04/21/2022 GEN 76293 LOCATORS & SUPPLIES INC 04/21/2022 GEN 76294*4 LOCATORS & SUPPLIES INC 04/21/2022 GEN 76295 MACKENZIE ABDO 04/21/2022 GEN 76297 MAKI, SUZANNE 04/21/2022 GEN 762984 MATHESON TRI-GAS INC Office Supplies OVERPAYMENTS Cip - Residential OVERPAYMENTS Cip- Commercial OVERPAYMENTS OVERPAYMENTS RAIN JACKET, 1503JFY, SIZE 2XL PAINT, LOCATING, INVERTED SURVEY PAINT, LOCATING, INVERTED SURVEY Sales Tax Receivable - New Sales Tax Receivable - New HECK GEN 76293 TOTAL FOR FUND 1: Account Dept 402-598- 02 401-921- 08 142-000- 00 401-916- 07 142-000- 00 401-916- 07 142-000- 00 142-000- 00 401-550- 01 154-000- 00 154-000- 00 186-000- 00 186-000- 00 SAFETY GLASSES, CLEAR, 19GB79 401-550- 01 FREIGHT & SALES TAX 401-550- 01 SAFETY GLASSES, GRAY, SILVER MIRROR, 401-550- 01 SAFETY GLASSES, GRAY, SILVER MIRROR, 401-588- 02 SAFETY GLASSES, CLEAR, 19GB79 401-588- 02 HECK GEN 76294 TOTAL FOR FUND 1: OVERPAYMENTS 142-000- 00 Cip - Residential 401-916- 07 Sales Tax Receivable - Replace 186-000- 00 Generator 41 Material 402-554- 01 HECK GEN 76298 TOTAL FOR FUND 1: Page 14/28 Amount 54.15 150.28 20.23 350.00 11.28 849.75 80.13 333.79 148.06 53.99 12.37 4.63 1.06 72.05 39.90 31.94 39.90 39.90 39.90 191.54 43.52 200.00 3.96 57.93 61.89 04/21/2022 10:14 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 03/24/2022 - 04/21/2022 Payee Description Account Dept Page 15/28 Amount Fund: 1 ELECTRIC 04/21/2022 GEN 762994 MCC ENERGY SOLUTIONS, LLC I AM MANAGEMENT FEES 401-555- 02 3, 900.00 IAM USAGE FEES 401-556- 03 3,050.00 CHECK GEN 76299 TOTAL FOR FUND 1: 6,950.00 04/21/2022 GEN 76303* MEDICA HEALTH INSURANCE 85% ELEC 242-000- 00 52,345.21 HEALTH INSURANCE -COBRA 242-000- 00 1,918.15 HECK GEN 76303 TOTAL FOR FUND 1: 54,263.36 04/21/2022 GEN 76304 MINNESOTA POLLUTION CONTROL AGENCY Permits And Rent 401-550- 01 3,108.76 04/21/2022 GEN 76305 MINNESOTA POLLUTION CONTROL AGENCY Permits And Rent 401-550- 01 1,354.41 04/21/2022 GEN 76306* MN MUNICIPAL UTILITIES ASSOCIATION MISC SERVICES-QTR SAFETY/MGMT 750 401-923- 08 4,134.38 DUES/MEMBERSHIP EXPENSE-QTR ELEC DUES 401-930- 08 1,050.00 HECK GEN 76306 TOTAL FOR FUND 1: 5,184.38 04/21/2022 GEN 76311* NUVERA TELEPHONE 401-921- 08 1,914.42 04/21/2022 GEN 763124 OXYGEN SERVICE COMPANY INC Sales Tax Receivable - Replace 186-000- 00 11.06 Generator 41 Material 402-554- 01 160.92 HECK GEN 76312 TOTAL FOR FUND 1: 171.98 04/21/2022 GEN 76313 OXYGEN SERVICE COMPANY INC Transformer - Materials 402-595- 02 158.94 04/21/2022 GEN 76314*4 OXYGEN SERVICE COMPANY INC Maintenance Other - Materials 402-554- 01 53.13 04/21/2022 GEN 76315*4 PETTY CASH Training - Expense 401-546- 01 59.75 Training - Expense 401-580- 02 129.52 Vehicles - Material 401-935- 08 19.25 HECK GEN 76315 TOTAL FOR FUND 1: 208.52 04/21/2022 GEN 76316* PREMIUM WATERS INC OFFICE SUPPLIES -BOTTLED WATER 401-921- 08 23.25 04/21/2022 GEN 76318 PRO AUTO & TRANSMISSION REPAIR Vehicles - Material 402-598- 02 156.71 04/21/2022 10:14 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 03/24/2022 - 04/21/2022 Payee Description Account Dept Page 16/28 Amount Fund: 1 ELECTRIC 04/21/2022 GEN 76319 PRO AUTO & TRANSMISSION REPAIR Vehicles - Material 402-598- 02 209. 74 04/21/2022 GEN 763214 QUADE ELECTRIC Sales Tax Receivable - Replace 186-000- 00 14.60 Accessory Plant - Materials 402-554- 01 212.40 HECK GEN 76321 TOTAL FOR FUND 1: 227.00 04/21/2022 GEN 763224 QUADE ELECTRIC Sales Tax Receivable - Replace 186-000- 00 13.39 Accessory Plant - Materials 402-554- 01 194.90 HECK GEN 76322 TOTAL FOR FUND 1: 208.29 04/21/2022 GEN 763234 QUADE ELECTRIC Sales Tax Receivable - Replace 186-000- 00 18.28 Accessory Plant - Materials 402-554- 01 266.00 HECK GEN 76323 TOTAL FOR FUND 1: 284.28 04/21/2022 GEN 76324* QUADIENT-LEASE LEASE/SERVICE AGREEMENTS 401-921- 08 654.30 04/21/2022 GEN 76325* QUADIENT-LEASE LEASE/SERVICE AGREEMENTS 401-921- 08 355.82 04/21/2022 GEN 76326 PAGE ABDI OVERPAYMENTS 142-000- 00 42.83 04/21/2022 GEN 763294 RUNNING'S SUPPLY INC Tearing Account 186-000- 00 9.99 Uniforms & Laundry 401-588- 02 100.00 HECK GEN 76329 TOTAL FOR FUND 1: 109.99 04/21/2022 GEN 76330 RUNNING'S SUPPLY INC Uniforms & Laundry 401-588- 02 79.99 04/21/2022 GEN 76331 RUNNING'S SUPPLY INC Structures & Improvements (Bui 101-390- 00 138.07 04/21/2022 GEN 76332 RUNNING'S SUPPLY INC Supplies 401-550- 01 19.99 04/21/2022 GEN 76333 SCHWEITZER ENGINEERING LABS SEL-3530 107-362- 00 6,976.00 Sales Tax Receivable - New 186-000- 00 479.60 HECK GEN 76333 TOTAL FOR FUND 1: 7,455.60 04/21/2022 10:14 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 03/24/2022 - 04/21/2022 Description Fund: 1 ELECTRIC 04/21/2022 GEN 76334 SCHWEITZER ENGINEERING LABS 04/21/2022 GEN 76338 THE HOMESOURCE STORE 04/21/2022 GEN 76340 TRI-DIM FILTER CORPORATION 04/21/2022 GEN 76341* UIS/SOURCECORP 04/21/2022 GEN 76342 UNITED COMM ACTION PARTNERSHIP 04/21/2022 GEN 76345* VIDEOTRONIX INC 04/21/2022 GEN 763464 VRC PROPS, LLC 04/21/2022 GEN 76347 WESCO RECEIVABLES CORP 04/21/2022 GEN 76348*4 WEST CENTRAL SANITATION INC 04/21/2022 GEN 76349 WHITE CONSTRUCTION 04/21/2022 GEN 76350 YENDRI CASTILLO LOPEZ Account Dept Page 17/28 Amount SEL-273A serial cable 107-362- 00 47.44 Sales Tax Receivable - Replace 186-000- 00 3.26 HECK GEN 76334 TOTAL FOR FUND 1: 50.70 Cip- Commercial 401-916- 07 426.00 Sales Tax Receivable - Replace 186-000- 00 72.88 COLLECTION - MATERIALS 401-903- 06 1,845.78 OVERPAYMENTS 142-000- 00 508.20 GROUNDS - OUTSIDE SERVICES 401-935- 08 478.50 Sales Tax Receivable - Replace 186-000- 00 223.49 Generator 41 Outside Services 402-554- 01 3,030.00 HECK GEN 76346 TOTAL FOR FUND 1: 3,253.49 ABB test switch 107-362- 00 865.98 ABB test switch 107-362- 00 4,118.10 Sales Tax Receivable - New 186-000- 00 342.66 HECK GEN 76347 TOTAL FOR FUND 1: 5,326.74 GENERATOR 41 WATER & SEWER -INDUSTRIAL 401-547- 01 114.10 WASTE DISPOSAL-4TH AVE 401-550- 01 184.21 UTILITY ESP - WATER/WASTE 55/45- 401-930- 08 278.38 HECK GEN 76348 TOTAL FOR FUND 1: 576.69 STRUCTURES & IMPROVEMENTS (BUI 107-341- 00 2, 190.00 OVERPAYMENTS 142-000- 00 50.38 Total for fund 1 ELECTRIC 1,691,274.04 04/21/2022 10:14 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 03/24/2022 - 04/21/2022 Description Fund: 2 GAS 03/28/2022 GEN 1065(E)* ALERUS 03/31/2022 GEN 76140* 8BITSTUDIO 03/31/2022 GEN 76142* ALEC WESTLUND 03/31/2022 GEN 76143* ALIYA EMME 03/31/2022 GEN 76144* ANGELA ESCANDON 03/31/2022 GEN 76146* APR INC 03/31/2022 GEN 76147* APR INC 03/31/2022 GEN 76148 ARKEMA, INC 03/31/2022 GEN 76150*4 BORDER STATES ELECTRIC SUPPLY 03/31/2022 GEN 76151* BRADLEY KASID OR TAMARA KASID Account Dept Page 18/28 Amount HEALTH INSURANCE 401-926- 08 129. 38 DEP REFUND/APPLIED 235-000- 00 87.50 DEP REFUND/APPLIED 235-000- 00 70.00 DEP REFUND/APPLIED 235-000- 00 21.00 DEP REFUND/APPLIED 235-000- 00 75.25 DEP REFUND/APPLIED 235-000- 00 35.00 DEP REFUND/APPLIED 235-000- 00 175.00 Odorant 401-880- 04 5,740.81 Odorant 401-880- 04 3,476.17 HECK GEN 76148 TOTAL FOR FUND 2: 9,216.98 NIPPLE, 1" X 2", BM, STD, SMLS, TEE 154-000- 00 52.00 NIPPLE, 3/4" X 9", BM, STD, SMLS, TEE 154-000- 00 83.40 NIPPLE, 3/4" X 5", BM, STD, SMLS, TEE 154-000- 00 21.35 NIPPLE, 1/4" X 3", BM, STD, SMLS, TEE 154-000- 00 9.03 SALES TAX 401-874- 04 10.78 SALES TAX 401-874- 04 0.62 MUELLER P/N# 51159 SHAFT TUBE WASHER 401-874- 04 18.74 MUELLER P/N# 51189 SHAFT FERRULE 401-874- 04 135.56 MUELLER P/N# 52969 SHAFT FERRULE 401-874- 04 37.78 Materials 401-874- 04 13.21 Other Equipment - Materials 402-895- 04 375.83 HECK GEN 76150 TOTAL FOR FUND 2: 758.30 DEP REFUND/APPLIED 235-000- 00 105.00 04/21/2022 10:14 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 03/24/2022 - 04/21/2022 Payee Description Account Dept Page 19/28 Amount Fund: 2 GAS 03/31/2022 GEN 76152* BRENT PETERSON DEP REFUND/APPLIED 235-000- 00 31.50 03/31/2022 GEN 76153* CAROL OLSON DEP REFUND/APPLIED 235-000- 00 70.00 03/31/2022 GEN 76154* CAROLINE WELSAND OR ATHENA CORDOVA DEP REFUND/APPLIED 235-000- 00 26.25 03/31/2022 GEN 76155*4 CINTAS CORPORATION 4470 UNIFORMS & LAUNDRY 401-880- 04 207.67 UNIFORMS & LAUNDRY 401-880- 04 207.67 HECK GEN 76155 TOTAL FOR FUND 2: 415.34 03/31/2022 GEN 76158* COURTNEY TESCH OR JAKE TESCH DEP REFUND/APPLIED 235-000- 00 73.50 03/31/2022 GEN 76160* ELDINE ERICKSON DEP REFUND/APPLIED 235-000- 00 19.25 03/31/2022 GEN 76163* FIRST CHOICE FOOD & BEVERAGE BREAKROOM/RECOGNITION BANQUET 401-926- 08 57.00 03/31/2022 GEN 76165 GROEBNER & ASSOCIATES INC P/N# EEPL072125 Lithium Battery Pack 416-108- 04 205.28 03/31/2022 GEN 76166* GUILLERMO SILVA OR AILIA SOTO DEP REFUND/APPLIED 235-000- 00 70.00 03/31/2022 GEN 76167* HARTUNG PARTNERSHIP DEP REFUND/APPLIED 235-000- 00 161.00 03/31/2022 GEN 76168* HUTCHFIELD SERVICES INC Grounds - Outside Services 401-935- 08 955.93 03/31/2022 GEN 76169* JAMIN LEHTO DEP REFUND/APPLIED 235-000- 00 31.50 03/31/2022 GEN 76170* JANNETTE LUTHENS DEP REFUND/APPLIED 235-000- 00 96.25 03/31/2022 GEN 76171* JENNIFER GULER DEP REFUND/APPLIED 235-000- 00 113.75 03/31/2022 GEN 76172* JOY BENGTSON DEP REFUND/APPLIED 235-000- 00 26.25 04/21/2022 10:14 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 03/24/2022 - 04/21/2022 Description Fund: 2 GAS 03/31/2022 GEN 76174 L & E TREE SERVICE 03/31/2022 GEN 76175 L & P SUPPLY COMPANY 03/31/2022 GEN 76177* LUDOWESE, JOHN 03/31/2022 GEN 76178* MARCO TECHNOLOGIES, LLC 03/31/2022 GEN 76179* MIKE LINDER OR JANE LINDER 03/31/2022 GEN 76180* MIKE OTTESON 03/31/2022 GEN 76181* MINNESOTA COMMERCE DEPT 03/31/2022 GEN 761824 MRC GLOBAL 03/31/2022 GEN 76183* NATHAN DUB 03/31/2022 GEN 76184 NIELSEN, BETTY 03/31/2022 GEN 76185*4 NORTHERN STATES SUPPLY INC 03/31/2022 GEN 76186 NOVASPECT INC 03/31/2022 GEN 76187* PAM LUEDTKE Account Dept Materials 402-863- 05 Power Equipment - Materials 402-895- 04 Cip - Residential 401-916- 07 OFFICE SUPPLIES 401-921- 08 DEP REFUND/APPLIED 235-000- 00 DEP REFUND/APPLIED 235-000- 00 Doc - Cip Assessment 401-916- 07 1-1/4" x 9" Xylan Coated B7 Stud with 107-367- 00 PLUG, BULL, SOLID HEX HEAD, MALE THRD, 154-000- 00 THREAD-O-LET, 1/4" X 2 1/2" X 1 1/4", 154-000- 00 NIPPLE, 1/2"X 3", BM, STD, SMLS, TEE 154-000- 00 FREIGHT & SALES TAX 401-874- 04 SALES TAX 401-874- 04 HECK GEN 76182 TOTAL FOR FUND 2: DEP REFUND/APPLIED 235-000- 00 Cip - Residential 401-916- 07 Materials 401-874- 04 Fisher P/N# RS201X0012, 5202 Rebuild 402-892- 04 Fisher P/N# RS201HX0012, S202H 402-892- 04 HECK GEN 76186 TOTAL FOR FUND 2: DEP REFUND/APPLIED 235-000- 00 Page 20/28 Amount 4,969.69 96.48 600.00 188.17 52.50 21.00 1,592.19 2,115.00 32.72 77.30 23.70 25.17 87.50 300.00 27.30 344.14 59.50 04/21/2022 10:14 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES Page 21/28 User: JMartig CHECK DATE FROM 03/24/2022 - 04/21/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Amount Fund: 2 GAS 03/31/2022 GEN 76192 RIDGEWATER COLLEGE Cip- Commercial 401-916- 07 3,953.60 03/31/2022 GEN 76193* RONALD EDGE DEP REFUND/APPLIED 235-000- 00 87.50 03/31/2022 GEN 76194*4 RUNNING'S SUPPLY INC Other Equipment - Materials 402-895- 04 86.28 Other Equipment - Materials 402-895- 04 12.93 Other Equipment - Materials 402-895- 04 59.62 HECK GEN 76194 TOTAL FOR FUND 2: 158.83 03/31/2022 GEN 76195* SAMANTHA DAAK OR FERNANDO ZUNIGA DEP REFUND/APPLIED 235-000- 00 66.50 03/31/2022 GEN 76197* SHARON BECK DEP REFUND/APPLIED 235-000- 00 24.50 03/31/2022 GEN 76198* SHERRY ANDERSON DEP REFUND/APPLIED 235-000- 00 87.50 03/31/2022 GEN 76199 SOUTH CENTRAL ELECTRIC ASS'N Utilities (Electric, Satellite 401-856- 05 33.00 03/31/2022 GEN 76200* SPENCER MATTSON DEP REFUND/APPLIED 235-000- 00 42.00 03/31/2022 GEN 76201* STEPHANIE FRAME DEP REFUND/APPLIED 235-000- 00 66.50 03/31/2022 GEN 76202* STEVE JORDAN DEP REFUND/APPLIED 235-000- 00 42.00 03/31/2022 GEN 762034 SWAGELOK MINNESOTA UNION, 1/4" TUBE X 1/4" TUBE, SS-400-6, 154-000- 00 338.75 NUT 1/4", SS-402-1 402-892- 04 46.80 FREIGHT & SALES TAX 402-892- 04 48. 02 HECK GEN 76203 TOTAL FOR FUND 2: 433.57 03/31/2022 GEN 76206* TOM WURZBERGER DEP REFUND/APPLIED 235-000- 00 28.00 03/31/2022 GEN 76207* TOM WURZBERGER DEP REFUND/APPLIED 235-000- 00 42.00 04/21/2022 10:14 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 03/24/2022 - 04/21/2022 Payee Description Account Dept Page 22/28 Amount Fund: 2 GAS 03/31/2022 GEN 76208 TWIN CITIES & WESTERN RAILROAD RAILROAD LICENSES 401-856- 05 3,132.43 03/31/2022 GEN 76209* TYLER COX DEP REFUND/APPLIED 235-000- 00 105.00 03/31/2022 GEN 76210* UNITED PARCEL SERVICE MAIL SERVICES - UPS, FEDEX 401-921- 08 20.26 03/31/2022 GEN 76211* VERIZON WIRELESS TELEPHONE 401-921- 08 358.12 03/31/2022 GEN 76213 WSB Project Management, Meetings & 401-856- 05 2,958.00 03/31/2022 GEN 76214* ZACHARY GASSMAN DEP REFUND/APPLIED 235-000- 00 35.00 03/31/2022 GEN 76215* ZEE SERVICE COMPANY MISC OTHER - MATERIALS -MEDICAL SUPPLIES 401-935- 08 87.10 04/04/2022 GEN 1061(E)* ARGUS DENTAL DENTAL INSURANCE-20o GAS 242-000- 00 975.27 04/04/2022 GEN 1062(E)* CITIZENS BANK Office Supplies 401-921- 08 79.48 04/04/2022 GEN 1063(E)* PAY MENTECH collection - Materials 401-903- 06 1,719.68 04/11/2022 GEN 1056(E)* INVOICE CLOUD collection - Materials 401-903- 06 1,882.73 04/16/2022 GEN 1069(E)*4 VISA SERVICES 17.82 107-380- 00 259.18 Materials 401-874- 04 13.30 Materials 401-874- 04 51.84 Materials 401-874- 04 22.28 Materials 401-874- 04 27.01 Utilities (Electric, Satellite 401-856- 05 81.54 Utilities (Electric, Satellite 401-856- 05 81.54 Training - Expense 401-930- 08 448.75 Training - Expense 401-930- 08 57.25 Training - Expense 401-930- 08 12.50 Grounds - Materials 401-935- 08 7.25 Grounds - Materials 401-935- 08 26.13 04/21/2022 10:14 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES Page 23/28 User: JMartig CHECK DATE FROM 03/24/2022 - 04/21/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Amount Fund: 2 GAS HECK GEN 1069(E) TOTAL FOR FUND 2: 1,088.57 04/16/2022 GEN 1070(E) VISA Meetings & Travel - Expense (S 401-870- 04 500.00 Meetings & Travel - Expense (S 401-870- 04 79.79 Meetings & Travel - Expense (S 401-870- 04 637.20 Materials 401-874- 04 26.96 Materials 401-874- 04 134.79 Vehicles - Material 402-895- 04 224.28 HECK GEN 1070(E) TOTAL FOR FUND 2: 1,603.02 04/20/2022 GEN 1057(E)*4 BP CANANDA ENERGY SOLUTIONS GAS FOR RETAIL 401-807- 04 ;24,674.79) 3M 401-807- 04 388,181.37 HTI 401-807- 04 22,661.03 UNG 401-807- 04 7,343.33 BROWNTON 401-807- 04 14,751.45 Utility Expenses - Water/Waste 401-930- 08 3,200.95 HECK GEN 1057(E) TOTAL FOR FUND 2: 411,463.34 04/20/2022 GEN 1058(E)*4 BP CANANDA ENERGY SOLUTIONS GAS FOR RETAIL 401-807- 04 1,781.80 04/20/2022 GEN 1060(E) PUBLIC ENERGY AUTHORITY OF Gas For Retail 401-807- 04 484,060.20 Contract Gas For Retail 401-807- 04 108.50 HECK GEN 1060(E) TOTAL FOR FUND 2: 484,168.70 04/20/2022 GEN 1064(E)* MINNESOTA REVENUE State Sales Tax 242-000- 00 14,966.00 City Sales Tax 242-000- 00 1,059.00 COUNTY SALES TAX 242-000- 00 1, 059. 00 HECK GEN 1064(E) TOTAL FOR FUND 2: 17,084.00 04/21/2022 GEN 76218 ACE HARDWARE Materials 402-863- 05 4.28 04/21/2022 GEN 76230 BORDER STATES ELECTRIC SUPPLY MUEC- 580916, 1/2 In Dia x 4-21/32 In 401-874- 04 322.05 04/21/2022 GEN 762314 BORDER STATES ELECTRIC SUPPLY VALVE, BALL, 1/2", BALON, LM - 05361, 154-000- 00 154.30 04/21/2022 10:14 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 03/24/2022 - 04/21/2022 Payee Description Account Dept Page 24/28 Amount Fund: 2 GAS SALES TAX 401-874- 04 10.61 HECK GEN 76231 TOTAL FOR FUND 2: 164.91 04/21/2022 GEN 762344 BORDER STATES ELECTRIC SUPPLY TAG, ELTO- URDPIKITY BELOW SLF 154-000- 00 144.10 SALES TAX 401-874- 04 9.97 HECK GEN 76234 TOTAL FOR FUND 2: 154.07 04/21/2022 GEN 76235 BORDER STATES ELECTRIC SUPPLY MUELLER P/N# 40709 BLEEDER O-RING 401-874- 04 3.26 Materials 401-874- 04 0.01 HECK GEN 76235 TOTAL FOR FUND 2: 3.27 04/21/2022 GEN 76236*4 BORDER STATES ELECTRIC SUPPLY VAVLE, BALL, 2" WELD X WELD, 154-000- 00 400.00 TAPE, BELOW GROUND USE, 41 WAX, 4" X 9 154-000- 00 274.08 SALES TAX 401-874- 04 46.34 HECK GEN 76236 TOTAL FOR FUND 2: 720.42 04/21/2022 GEN 76238 BROWN COUNTY RURAL ELECTRIC Utilities (Electric, Satellite 401-856- 05 204.25 04/21/2022 GEN 76240 CENTURYLINK Utilities (Electric, Satellite 401-856- 05 63.52 04/21/2022 GEN 76242*4 CINTAS CORPORATION 4470 UNIFORMS & LAUNDRY 401-880- 04 298. 12 04/21/2022 GEN 76243*4 CINTAS CORPORATION 4470 UNIFORMS & LAUNDRY 401-880- 04 196.78 04/21/2022 GEN 76244*4 CINTAS CORPORATION 4470 UNIFORMS & LAUNDRY 401-880- 04 196.78 04/21/2022 GEN 76245*4 CITY OF HUTCHINSON Accounts Payable To City Of Hu 234-000- 00 143,412.25 IT ADMIN AND SUPPORT 250 401-921- 08 6,589.81 LEGAL SERVICES 75/25 401-923- 08 2,625.00 HUMAN RESOURCES SERVICES 75/25 401-923- 08 2,067.19 HECK GEN 76245 TOTAL FOR FUND 2: 154,694.25 04/21/2022 GEN 76247*4 CITY OF HUTCHINSON VEHICLE/EQUIPMENT FUEL -GAS 401-880- 04 1,742.97 04/21/2022 10:14 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 03/24/2022 - 04/21/2022 Payee Description Account Dept Page 25/28 Amount Fund: 2 GAS VEHICLES/EQUIPMENT FUEL-ADMIN 55/45 401-935- 08 67.86 HECK GEN 76247 TOTAL FOR FUND 2: 1,810.83 04/21/2022 GEN 76248* CITY OF HUTCHINSON IT ADMIN AND SUPPORT 250 401-921- 08 3, 861.59 04/21/2022 GEN 76254* CITY OF HUTCHINSON Utility Expenses - Water/Waste 401-930- 08 12.02 04/21/2022 GEN 76255*4 CITY OF HUTCHINSON Utility Expenses - Water/Waste 401-930- 08 399.21 04/21/2022 GEN 76256* CONWAY DEUTH & SCHMIESING PLLP MISC SERVICES 401-923- 08 4, 925.00 04/21/2022 GEN 76266 DOT/PHMSA REGULATORY EXPENSES 401-928- 08 36, 746.16 04/21/2022 GEN 762674 ELLENSON, RYAN Mains 107-367- 00 660.99 Mains 107-367- 00 1,191.88 Materials 402-892- 04 58.44 Materials 402-863- 05 107.62 Materials 402-863- 05 32.20 Materials 402-863- 05 28.98 HECK GEN 76267 TOTAL FOR FUND 2: 2,080.11 04/21/2022 GEN 76273*4 GOPHER STATE ONE -CALL INC Materials 401-874- 04 45. 90 Line - Outside Services 401-856- 05 13.50 HECK GEN 76273 TOTAL FOR FUND 2: 59.40 04/21/2022 GEN 762744 GROEBNER & ASSOCIATES INC TEE, TAPPING, ASBLY, 4" X 3/4" IPS MOPE 154-000- 00 3, 159. 00 TEE, TAPPING, ASBLY, 2" X 3/4" IPS MOPE 154-000- 00 3,159.00 FREIGHT & TAX 401-874- 04 520.81 CHECK GEN 76274 TOTAL FOR FUND 2: 6,838.81 04/21/2022 GEN 762754 GROEBNER & ASSOCIATES INC SLEEVES, COPPER, AS200 154-000- 00 126.00 FREIGHT & TAX 401-874- 04 22.93 HECK GEN 76275 TOTAL FOR FUND 2: 148.93 04/21/2022 10:14 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 03/24/2022 - 04/21/2022 Payee Description Account Dept Page 26/28 Amount Fund: 2 GAS 04/21/2022 GEN 76279* HILLYARD/HUTCHINSON Grounds - Materials 401-935- 08 129.74 04/21/2022 GEN 76280* HILLYARD/HUTCHINSON Grounds - Materials 401-935- 08 54.79 04/21/2022 GEN 76281* HUTCHINSON LEADER Cip - Marketing 401-916- 07 196.25 04/21/2022 GEN 762834 IMAC SYSTEMS, INC STRAINER, GASKET RING, 2", 20 MESH, 154-000- 00 278.30 FREIGHT 401-874- 04 21.36 HECK GEN 76283 TOTAL FOR FUND 2: 299.66 04/21/2022 GEN 76284* INNOVATIVE OFFICE SOLUTIONS Office Supplies 401-921- 08 50.09 04/21/2022 GEN 76285 INSELMANN, ERIC Training - Expense 401-870- 04 42.27 04/21/2022 GEN 76294*4 LOCATORS & SUPPLIES INC SAFETY GLASSES, GRAY, SILVER MIRROR, 401-880- 04 39. 90 SAFETY GLASSES, CLEAR, 19GB79 401-880- 04 39. 90 HECK GEN 76294 TOTAL FOR FUND 2: 79.80 04/21/2022 GEN 76296 MAIERS, MATTHEW Training - Expense 401-870- 04 403.37 04/21/2022 GEN 76300 MCLEOD COOPERATVIE POWER ASSN UTILITIES (ELECTRIC, SATELLITE-MCLEOD 401-856- 05 38.66 04/21/2022 GEN 76301 MCLEOD COOPERATVIE POWER ASSN UTILITIES (ELECTRIC, SATELLITE -PIPELINE 401-856- 05 39. 64 04/21/2022 GEN 76302 MCLEOD COOPERATVIE POWER ASSN MISC EXPENSE -GAS LINE PUMP 401-880- 04 69.37 04/21/2022 GEN 76303* MEDICA HEALTH INSURANCE 15% GAS 242-000- 00 9,237.39 04/21/2022 GEN 76306* MN MUNICIPAL UTILITIES ASSOCIATION MISC SERVICES-QTR SAFETY/MGMT 250 401-923- 08 1,378.12 04/21/2022 GEN 763074 MRC GLOBAL FREIGHT & TAX 401-874- 04 53.63 5/8" x 4-1/2" Xylan Coated B7 Stud 401-926- 08 247.68 HECK GEN 76307 TOTAL FOR FUND 2: 301.31 04/21/2022 GEN 76308 MRC GLOBAL 1447-2011, 4 Valbart A04FR06LSNDVG, 600 107-367- 00 4,219.85 04/21/2022 10:14 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM 03/24/2022 - 04/21/2022 Payee Description Account Dept Page 27/28 Amount Fund: 2 GAS 04/21/2022 GEN 76309 MRC GLOBAL 7/8" x 6" XYLAN COATED B7 STUD W/2H - 107-367- 00 582.40 Mains 107-367- 00 0.58 HECK GEN 76309 TOTAL FOR FUND 2: 582.98 04/21/2022 GEN 76310 NORTHERN BORDER PIPELINE CO LINE - OUTSIDE SERVICES -INTERCONNECT 401-856- 05 2,000.00 04/21/2022 GEN 76311* NUVERA TELEPHONE 401-921- 08 638.14 04/21/2022 GEN 76314*4 OXYGEN SERVICE COMPANY INC Materials 401-874- 04 53.14 04/21/2022 GEN 76315*4 PETTY CASH Other Equipment - Materials 402-895- 04 56.39 04/21/2022 GEN 76316* PREMIUM WATERS INC OFFICE SUPPLIES -BOTTLED WATER 401-921- 08 7.75 04/21/2022 GEN 76317 PRO AUTO & TRANSMISSION REPAIR Vehicles - Material 402-895- 04 131.57 04/21/2022 GEN 76320 PRO AUTO & TRANSMISSION REPAIR Vehicles - Material 402-895- 04 49.29 04/21/2022 GEN 76324* QUADIENT-LEASE LEASE/SERVICE AGREEMENTS 401-921- 08 218.10 04/21/2022 GEN 76325* QUADIENT-LEASE LEASE/SERVICE AGREEMENTS 401-921- 08 118.60 04/21/2022 GEN 76327 RUNNING'S SUPPLY INC Meters And All Fittings 107-381- 00 1.25 04/21/2022 GEN 76328 RUNNING'S SUPPLY INC Meters And All Fittings 107-381- 00 6.45 04/21/2022 GEN 763354 SENSIT TECHNOLOGIES GAS, CALIBRATION, 2.5% BY VOL.(50oLEL) 154-000- 00 171.58 FREIGHT 401-874- 04 63.74 HECK GEN 76335 TOTAL FOR FUND 2: 235.32 04/21/2022 GEN 76336 SPRINT Utilities (Electric, Satellite 401-856- 05 133.00 04/21/2022 GEN 76337 STATE OF MINNESOTA Regulatory Expenses 401-928- 08 818.19 04/21/2022 GEN 76339 THE JOURNAL Public Awareness - Material 401-856- 05 188.50 04/21/2022 10:14 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES Page 28/28 User: JMartig CHECK DATE FROM 03/24/2022 - 04/21/2022 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Amount Fund: 2 GAS 04/21/2022 GEN 76341* UIS/SOURCECORP COLLECTION - MATERIALS 401-903- 06 1,510.19 04/21/2022 GEN 76343 VARPNESS, JEREMY Cip - Residential 401-916- 07 300.00 04/21/2022 GEN 76344 VERIZON WIRELESS UTILITIES (ELECTRIC, SATELLITE-SCADA 401-856- 05 117.25 04/21/2022 GEN 76345* VIDEOTRONIX INC GROUNDS - OUTSIDE SERVICES 401-935- 08 391.50 04/21/2022 GEN 76348*4 WEST CENTRAL SANITATION INC UTILITY ESP - WATER/WASTE 45/55- Total for fund 2 GAS TOTAL - ALL FUNDS '*'-INDICATES CHECK DISTRIBUTED TO MORE THAN ONE FUND '#'-INDICATES CHECK DISTRIBUTED TO MORE THAN ONE DEPARTMENT 401-930- 08 227.77 1,196,524.50 2,887,798.54 HUTCHINSON UTILITIES COMMISSION COMBINED DIVISIONS FINANCIAL REPORT FOR MARCH, 2022 Combined Division Customer Revenue Sales for Resale NU Transportation Electric Division Transfer Other Revenues Interest Income TOTALREVENUES Salaries & Benefits Purchased Commodities Transmission Generator Fuel/Chem. Depreciation Transfers (Elect./City) Operating Expense Debt Interest TOTAL EXPENSES NET PROFIT/(LOSS) 2022 2021 Di %Chng 1 2022 2021 Di %Chng I Full YrBud %of Bud $ 3,341,699 $ 2,908,037 $ 433,662 $ 246,640 $ 251,360 $ (4,720) $ 87,262 $ 83,419 $ 3,843 $ 59,724 $ 56,879 $ 2,844 $ 59,246 $ 20,036 $ 39,210 $ 29,263 $ 42,102 $ (12,838) $ 3,823,834 $ 3,361,832 $ 462,002 14.9%1 $ 11,188,673 $ 12,608,736 $ (1,420,063) (11.3%)l $ 37,355,080 (1.9%) $ 801,389 $ 753,218 $ 48,171 6.4% $ 3,692,000 4.6% $ 263,523 $ 252,379 $ 11,144 4.4% $ 1,010,124 5.0% $ 179,171 $ 170,637 $ 8,533 5.0% $ 716,383 195.7% $ 126,692 $ 86,478 $ 40,214 46.5% $ 479,700 (30.5%) $ 112,031 $ 122,957 $ (10,926) (8.9%) $ 383,456 13.7%1 $ 12,671,479 $ 13,994,406 $ (1,322,927) (9.5%)l $ 43,636,743 30.0% 21.7% 26.1% 25.0% 26.4% 29.2% 29.0% $ 579,554 $ 571,602 $ 7,952 1.39% $ 1,723,010 $ 1,652,442 $ 70,568 4.3% $ 7,270,807 23.7% $ 1,836,678 $ 1,484,581 $ 352,096 23.7% $ 6,602,226 $ 9,246,262 $ (2,644,036) (28.6%) $ 19,927,587 33.1% $ 199,673 $ 203,577 $ (3,904) (1.9%) $ 582,946 $ 609,663 $ (26,717) (4.4%) $ 3,325,000 17.5% $ 25,217 $ 22,377 $ 2,840 12.7% $ 289,927 $ 128,879 $ 161,048 125.0% $ 1,219,698 23.8% $ 378,555 $ 366,827 $ 11,728 3.2% $ 1,135,977 $ 1,101,169 $ 34,807 3.2% $ 4,400,000 25.8% $ 215,323 $ 212,479 $ 2,844 1.3% $ 645,969 $ 637,435 $ 8,533 1.3% $ 2,583,875 25.0% $ 239,165 $ 192,853 $ 46,312 24.0% $ 781,700 $ 594,595 $ 187,105 31.5% $ 3,367,066 23.2% $ 75,076 $ 83,542 $ (8,467) (10.1%) $ 225,227 $ 250,626 $ (25,400) 10.1% $ 900,907 25.0% $ 3,549,241 $ 3,137,839 $ 411,402 13.1% $ 11,986,981 $ 14,221,072 $ (2,234,091) (15.7%) $ 42,994,940 27.9% $ 274,593 $ 223,993 $ 50,600 22.6% $ 684,498 $ (226,666) $ 911,165 (402.0%) $ 641,803 106.7% March March YTD YTD 2022 2021 Change 2022 2021 Change Gross Margin %: 34.7% 38.1% -3.5% 31.2% 20.5% 10.7% Operating Income Per Revenue $ (%): 7.4% 7.5% -0.1% 5.7% -1.3% 7.0% Net Income Per Revenue $ (%): 7.2% 6.7% 0.5% 5.4% -1.6% 7.0% 2022 HUC Budget Target 32.6% W iiiiiii!I 2.2% 1.5% HUTCHINSON UTILITIES COMMISSION ELECTRIC DIVISION FINANCIAL REPORT FOR MARCH, 2022 2022 2021 Di %Chna 2022 2021 Di . %Chna Full YrBud %of Bud Electric Division Customer Revenue $ 1,902,982 $ 1,891,209 $ 11,773 0.6% $ 5,873,425 $ 6,054,870 $ (181,445) (3.0%) $ 25,325,244 23.2% Sales for Resale $ 246,640 $ 251,360 $ (4,720) (1.9%) $ 801,389 $ 753,218 $ 48,171 6.4% $ 3,692,000 21.7% Other Revenues $ 23,162 $ 1,129 $ 22,033 1,951.2% $ 38,634 $ 31,021 $ 7,612 24.5% $ 188,599 20.5% Interest Income $ 16,026 $ 22,445 $ (6,419) (28.6%) $ 60,198 $ 65,590 $ (5,392) (8.2%) $ 208,456 28.9% TOTAL REVENUES $ 2,188,810 $ 2,166,143 $ 22,668 1.0% $ 6,773,646 $ 6,904,699 $ (131,053) (1.9%) $ 29,414,299 23.0% Salaries & Benefits $ 436,283 $ 420,487 $ 15,797 3.8% $ 1,294,443 $ 1,222,634 $ 71,809 5.9% $ 5,319,511 24.3% Purchased Power $ 942,465 $ 924,193 $ 18,271 2.0% $ 3,023,467 $ 3,331,276 $ (307,809) (9.2%) $ 12,297,526 24.6% Transmission $ 199,673 $ 203,577 $ (3,904) (1.9%) $ 582,946 $ 609,663 $ (26,717) (4.4%) $ 3,325,000 17.5% Generator Fuel/Chem. $ 25,217 $ 22,377 $ 2,840 12.7% $ 289,927 $ 128,879 $ 161,048 125.0% $ 1,219,698 23.8% Depreciation $ 287,226 $ 275,996 $ 11,231 4.1% $ 861,989 $ 828,674 $ 33,315 4.0% $ 3,300,000 26.1% Transfers (Elect./City) $ 167,519 $ 164,674 $ 2,844 1.7% $ 502,556 $ 494,023 $ 8,533 1.7% $ 2,010,226 25.0% Operating Expense $ 158,538 $ 108,967 $ 49,570 45.5% $ 554,855 $ 364,347 $ 190,507 52.3% $ 1,928,042 28.8% Debt Interest $ 40,071 $ 43,321 $ (3,250) (7.5%) $ 120,214 $ 129,964 $ (9,750) 7.5% $ 480,857 25.0% TOTAL EXPENSES $ 2,256,993 $ 2,163,593 $ 93,400 4.3% $ 7,230,397 $ 7,109,461 $ 120,937 1.7% $ 29,880,860 24.2% NET PROFIT/(LOSS) $ (68,182) $ 2,550 $ (70,732) (2,774.0%) $ (456,751) $ (204,762) $ (251,990) 123.1% $ (466,561) 97.9% 2022 2021 Di %Chna 2022 2021 Di . %Chna Full YrBud %of Bud Electric Division Residential 3,997,010 3,739,354 257,656 6.89% 12,935,589 12,368,138 567,451 4.59% 54,152,764 23.9% All Electric 277,147 223,593 53,554 23.95% 1,059,762 910,399 149,363 16.41% 2,641,117 40.1% Small General 1,494,867 1,450,635 44,232 3.05% 4,677,806 4,450,919 226,887 5.10% 18,688,349 25.0% Large General 6,888,720 6,676,780 211,940 3.17% 20,085,150 19,458,150 627,000 3.22% 83,253,310 24.1% Industrial 9,474,000 10,065,000 (591,000) (5.87%) 27,270,000 27,663,000 (393,000) (1.42%) 122,088,679 22.3% Total KWH Sold 22,131,744 22,155,362 (23,618) (0.11%)l 66,028,307 64,850,606 1,177,701 1.82%1 280,824,218 23.5% March March YTD YTD 2022 HUC 2022 2021 Change 2022 2021 Change Budget Target Gross Margin %: 29.1% 32.0% -2.8% 26.6% 26.9% -0.2°% 29.2°% Operating Income Per Revenue $ (%): -2.6% 1.1% -3.7% -6.1% -2.5% -3.6% -0.7°% Net Income Per Revenue $ (%): -3.1% 0.1% -3.2% -6.7% -3.0% -3.8% -1.6% Customer Revenue per KWH: $0.0860 $0.0854 $0.0006 $0.0890 $0.0934 -$0.0044 $0.0902 $0.0902 Total Power Supply Exp. per KWH: $0.0692 $0.0658 $0.0034 $0.0745 $0.0768 -$0.0023 $0.0736 $0.0736 Net Loss increased by $70,732 over March 2021. Customer Revenue increased slightly but not enough to cover increased expenses. The increase in operating expenses was for nozzle cleaning, testing, and repairs and a down payment on elevator repairs approved at last month's meeting. Sales for Resale of $246,640 consisted of $2,390 in market sales, $98,000 in capacity sales to Rice Lake and $146,250 in capacity sales to AEP. March 2021 Sales for Resale of $251,360 included $7,110 in market sales, $146,250 in capacity sales to AEP, and $98,000 in capacity sales to Rice Lake. March 2020 Sales for Resale of $164,788 consisted of $15,288 in market sales, $136,000 in capacity sales to SMMPA, and $13,500 in capacity sales to AEP. Overall Purchased Power increased by $18,271. MRES purchases decreased by $25,563 and market purchases/MISO costs increased by $43,834. There was no Power Cost Adjustment for March 2022 with the amount collected remaining at $243,139 YTD. There was also no power cost adjustment for March 2021 with the total amount collected through March at $673,497. HUTCHINSON UTILITIES COMMISSION GAS DIVISION FINANCIAL REPORT FOR MARCH, 2022 2022 2021 Di %Chng 2022 2021 Di %Chna Full YrBud %of Bud Gas Division Customer Revenue $ 1,438,717 $ 1,016,828 $ 421,889 41.5% $ 5,315,248 $ 6,553,866 $ (1,238,618) (18.9%) $ 12,029,836 44.2% Transportation $ 87,262 $ 83,419 $ 3,843 4.6% $ 263,523 $ 252,379 $ 11,144 4.4% $ 1,010,124 26.1% Electric Div. Transfer $ 59,724 $ 56,879 $ 2,844 5.0% $ 179,171 $ 170,637 $ 8,533 5.0% $ 716,383 25.0% Other Revenues $ 36,083 $ 18,906 $ 17,177 90.9% $ 88,058 $ 55,457 $ 32,601 58.8% $ 291,101 30.2% Interest Income $ 13,238 $ 19,657 $ (6,419) (32.7%) $ 51,834 $ 57,367 $ (5,534) (9.6%) $ 175,000 29.6% TOTAL REVENUES $ 1,635,023 $ 1,195,689 $ 439,334 36.7% $ 5,897,833 $ 7,089,706 $ (1,191,873) (16.8%) $ 14,222,444 41.5% Salaries & Benefits $ 143,270 $ 151,115 $ (7,845) (5.2%) $ 428,567 $ 429,808 $ (1,241) (0.3%) $ 1,951,296 22.0% Purchased Gas $ 894,213 $ 560,388 $ 333,825 59.6% $ 3,578,759 $ 5,914,986 $ (2,336,227) (39.5%) $ 7,630,061 46.9% Operating Expense $ 80,627 $ 83,886 $ (3,259) (3.9%) $ 226,845 $ 230,247 $ (3,402) (1.5%) $ 1,439,024 15.8% Depreciation $ 91,329 $ 90,832 $ 497 0.5% $ 273,988 $ 272,496 $ 1,492 0.5% $ 1,100,000 24.9% Transfers (City) $ 47,804 $ 47,804 $ - 0.0% $ 143,412 $ 143,412 $ 0 0.0% $ 573,649 25.0% Debt Interest $ 35,004 $ 40,221 $ (5,217) 0.0% $ 105,013 $ 120,662 $ (15,650) 13.0% $ 420,050 25.0% TOTAL EXPENSES $ 1,292,248 $ 974,246 $ 318,002 32.6% $ 4,756,583 $ 7,111,611 $ (2,355,028) (33.1%) $ 13,114,080 36.3% N�yETPROFIT/(L/O�SS) 342,775 $ 221,443 $ 54.8%1 1,108,364 103.0% 1,141,250 $ (2y1,905) $ 1,163,154 (5,310.1%)l rye$ p121,,332 25% of Year Comp. 2022 2021 Di %Chng 2022 2021 Di %Chng Full YrBud %ofBud Gas Division Residential 58,158,538 42,610,967 15,547,571 36.49% 230,359,479 189,869,805 40,489,674 21.32% 439,919,000 52.4% Commercial 43,015,562 32,172,958 10,842,604 33.70% 166,537,580 138,282,899 28,254,681 20.43% 347,946,000 47.9% Industrial 92,736,089 75,362,520 17,373,569 23.059/c 1 312,156,026 278,521,839 33,634,187 12.08% 873,587,000 35.7% Total CF Sold 193,910,189 150,146,445 43,763,744 29.15% 709,053,085 606,674,543 102,378,542 16.88% 1,661,452,000 42.7% March March YTD YTD 2022 HUC 2022 2021 Change 2022 2021 Change Budget Target Gross Margin %: 42.2% 49.5% -7.3% 36.6% 14.3% 22.3% 39.9% 37%-40% Operating Income Per Revenue $ (%): 20.9% 19.3% 1.7% 19.3% -0.2% 19.5% 8.2% IIIIIIIIIIII Net Income Per Revenue $ (%): 21.0% 18.5% 2.4% 19.4% -0.3% 19.7% 7.8% IIIIIIIIIIII Contracted Customer Rev. per CF: $0.0057 $0.0040 $0.0017 $0.0060 $0.0094 -$0.0033 $0.0056 Customer Revenue per CF: $0.0089 $0.0094 -$0.0006 $0.0086 $0.0120 -$0.0034 $0.0088 $0.0088 Total Power Supply Exp. per CF: $0.0047 $0.0039 $0.0008 $0.0052 $0.0099 ($0.0047) $0.0050 $0.0050 February 2022 net income increased by $121,332. Heating degree days were 1,021 compared to 751 a year ago. This led to an increase in usage and revenue as well as purchased gas. There was no fuel cost adjustment for March 2022 and also zero YTD. March 2021 fuel cost adjustment was also zero for the month and $1,106,185 YTD. Current Assets UnrestrictedlUndesignated Cash Cash Petty Cash Designated Cash Capital Expenditures - Five Yr. CIP Payment in Lieu of Taxes Rate Stabilization - Electric Rate Stabilization - Gas Catastrophic Funds Restricted Cash Bond Interest Payment 2017 Bond Interest Payment 2012 Debt Service Reserve Funds Total Current Assets Receivables Accounts (net of uncollectible allowances) Interest Total Receivables Other Assets Inventory Prepaid Expenses Sales Tax Receivable Deferred Outflows - Electric Deferred Outflows - Gas Total Other Assets Total Current Assets Capital Assets Land & Land Rights Depreciable Capital Assets Accumulated Depreciation Construction - Work in Progress Total Net Capital Assets Total Assets HUTCHINSON UTILITIES COMMISSION BALANCE SHEET - CONSOLIDATED MARCH 31, 2022 Electric Gas Total Division Division 2022 Total Net Change 2021 Total (YTD) 5,775,592.52 11,390,983.14 17,166,575.66 17,654,646.06 (488,070.40) 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 - 447,180.43 - 447,180.43 415,781.02 31,399.41 - 617,034.00 617,034.00 255,154.63 361,879.37 800,000.00 200,000.00 1,000,000.00 1,000,000.00 - 1,093,618.66 - 1,093,618.66 1,094,285.44 (666.78) - 716,683.30 716,683.30 682,550.00 34,133.30 522,335.64 2,188,694.02 2,711,029.66 2,711,029.66 - 12,682,950.25 16,387,213.46 29,070,163.71 29,131,488.81 (61,325.10) 2,062,962.94 1,614,819.66 3,677,782.60 3,615,015.15 62,767.45 47,207.51 47,207.50 94,415.01 97,985.30 (3,570.29) 2,110,170.45 1,662,027.16 3,772,197.61 3,713,000.45 59,197.16 1,758,820.14 507,307.58 2,266,127.72 2,007,398.65 258,729.07 257,163.01 54,007.33 311,170.34 289,912.81 21,257.53 148,133.55 - 148,133.55 96,651.28 51,482.27 1,630,746.00 - 1,630,746.00 313,166.00 1,317,580.00 - 543,582.00 543,582.00 104,390.00 439,192.00 3,794,862.70 1,104,896.91 4,899,759.61 2,811,518.74 2,088,240.87 18,587,983.40 19,154,137.53 37,742,120.93 35,656,008.00 2,086,112.93 690,368.40 3,899,918.60 4,590,287.00 4,590,287.00 - 111,115,064.00 42,656,015.41 153,771,079.41 150,544,190.76 3,226,888.65 (64,548,842.17) (19,446,115.17) (83,994,957.34) (79,864,666.24) (4,130,291.10) 44,397.74 58,864.23 103,261.97 1,534,182.79 (1,430,920.82) 47,300,987.97 27,168,683.07 74,469,671.04 76,803,994.31 (2,334,323.27) 65,888,971.37 46,322,820.60 112,211,791.97 112,460,002.31 (248,210.34) HUTCHINSON UTILITIES COMMISSION BALANCE SHEET - CONSOLIDATED MARCH 31, 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 1,480,515.65 1,048,579.65 2,529,095.30 3,204,568.88 (675,473.58) Accrued Expenses Accrued Interest 160,285.41 140,016.66 300,302.07 333,168.66 (32,866.59) Accrued Payroll 43,143.57 15,488.55 58,632.12 207,643.58 (149,011.46) Total Current Liabilities 2,383,944.63 3,119,693.18 5,503,637.81 6,170,989.44 (667,351.63) 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 524,159.04 680,563.47 1,204,722.51 1,423,787.79 (219,065.28) Pension Liability- Electric 2,219,565.00 - 2,219,565.00 3,026,207.00 (806,642.00) Pension Liability - Electric OPEB 94,162.00 - 94,162.00 84,054.00 10,108.00 Pension Liability- Nat Gas - 739,855.00 739,855.00 1,008,736.00 (268,881.00) Pension Liability - Nat Gas OPEB - 31,387.00 31,387.00 28,018.00 3,369.00 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 2,041,393.00 - 2,041,393.00 123,417.00 1,917,976.00 Deferred Outflows - Nat Gas - 680,464.00 680,464.00 41,139.00 639,325.00 Total Long -Term Liabilities 19,432,578.55 10,107,366.79 29,539,945.34 30,684,610.23 (1,144,664.89) Net Position Retained Earnings 44,072,448.19 33,095,760.63 77,168,208.82 75,604,402.64 1,563,806.18 Total Net Position 44,072,448.19 33,095,760.63 77,168,208.82 75,604,402.64 1,563,806.18 Total Liabilities and Net Position 65,888,971.37 46,322,820.60 112,211,791.97 112,460,002.31 (248,210.34) Hutchinson Utilities Commission Cash -Designations Report, Combined March 31, 2022 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest March 2022 February 2022 Position Savings, Checking, Investments varies Total Operating Funds Debt Reserve Requirements Debt Reserve Requirements Total Restricted Funds Operating Reserve Rate Stabalization Funds PILOT Funds Catastrophic Funds Capital Reserves Total Designated Funds varies varies 29,070,163.71 28,617,933.29 452,230.42 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) 29,070,163.71 28,617,933.29 452,230.42 1,711,897.27 1,434,321.74 277,575.53 2,711,029.66 2,711,029.66 - 4,422,926.93 4,145,351.40 277,575.53 6,432,490.00 6,432,490.00 - 1,064,214.43 941,163.51 123,050.92 1,867,192.00 1,867,192.00 - 1, 000, 000.00 1, 000, 000.00 3,450,000.00 3,450,000.00 - 13,813,896.43 13,690,845.51 123,050.92 YE YE YE YE YTD HUC 2018 2019 2020 2021 2022 Target Debt to Asset 37.7% 34.9% 32.3% 30.8% 31.2% Current Ratio 3.93 5.11 5.67 5.22 5.64 RONA 3.16% 2.25% 3.62% 0.41% 0.68% Change in Cash Balance (From 12131114 to 313112022) Month End Electric Elec. Change Natural Gas Gas Change Total Total Change 3/31/2022 12, 682,950 16, 387, 213 29,070,164 12/31/2021 12,870,253 (187,303) 15,086,000 1,301,213 27,956,253 1,113,911 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 March 31, 2022 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest March 2022 February 2022 Position Savings, Checking, Investments varies varies varies 29,070,163.71 28,617,933.29 452,230.42 Total HUC Operating Funds 29,070,163.71 28,617,933.29 452,230.42 Debt Restricted Requirements Debt Restricted Requirements Total Restricted Funds Bond Covenants - sinking fund Bond Covenants -1 year Max. P & 1 995,213.97 522,335.64 1,517,549.61 896,809.28 522,335.64 1,419,144.92 98,404.69 - 98,404.69 Excess Reserves Less Restrictions, Electric 00 Operating Reserve Min 60 days of 2022 Operating Bud. 4,430,143.33 4,430,143.33 - Rate Stabalization Funds $400K-$1.2K 447,180.43 364,336.05 82,844.38 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 9,720,866.76 9,638,022.38 82,844.38 Excess Reserves Less Restrictions & Designations, Electric 1,444,533.88 1,566,051.92 (121,518.04) 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% 33.1% 39.8% Current Ratio 3.63 5.26 6.18 5.70 6.44 3.75 RONA -0.3% -0.4% 2.5% -1.2% -0.8% NA >0% Hutchinson Utilities Commission Cash -Designations Report, Gas March 31, 2022 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest March 2022 February 2022 Position Savings, Checking, Investments varies varies Total HUC Operating Funds uzz;xilivision I`111111``111111```11`11`` Debt Restricted Requirements Bond Covenants - sinking fund Debt Restricted Requirements Bond Covenants -1 year Max. P & I Total Restricted Funds Operating Reserve Rate Stabalization Funds PILOT Funds Catastrophic Funds Capital Reserves Total Designated Funds varies 29,070,163.71 28,617,933.29 452,230.42 29,070,163.71 28,617,933.29 452,230.42 Min 60 days of 2022 Operating Bud. $200K-$600K Charter (Formula Only) Risk Mitigation Amount 5 Year CIP ( 2022-2026 Fleet & Infrastructure Maintenance) 716,683.30 537,512.46 179,170.84 2,188,694.02 2,188,694.02 - 2,905,377.32 2,726,206.48 179,170.84 2,002,346.67 2,002,346.67 - 617,034.00 576,827.46 40,206.54 573,649.00 573,649.00 - 200,000.00 200,000.00 700,000.00 700,000.00 - 4,093,029.67 4,052,823.13 40,206.54 YE YE YE YE YTD HUC 2018 2019 2020 2021 2022 AGA Ratio Target Debt to Asset 40.7% 36.1% 32.0% 28.8% 28.6% 35%-50% Current Ratio 4.33 4.96 5.18 4.79 5.03 1.0-3.0 RONA 8.3% 6.4% 5.3°% 2 9°% 2 9°% 2%-5°% HUTCHINSON UTILITIES COMMISSION Investment Report For the Month Ended March 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 - 16,870.30 - - - N/A Wells Fargo FHLB 0.400% 0.587% 01/29/2021 01/29/2026 295,000.00 276,291.10 295,000.00 (18,708.90) - 07/29/2022 Wells Fargo FHLB 0.400% 0.525% 02/09/2021 02/09/2026 470,000.00 439,459.40 470,000.00 (30,540.60) - 08/09/2022 Wells Fargo FHLB 0.500% 1.432% 04/29/2021 04/29/2026 400,000.00 380,696.00 400,000.00 (19,304.00) - 06/29/2022 Wells Fargo FHLB 0.650% 1.069% 06/30/2021 06/30/2026 300,000.00 282,153.00 300,000.00 (17,847.00) - 06/30/2022 Wells Fargo FHLB 0.600 % 1.281 % 09/30/2021 09/30/2026 250,000.00 236,247.50 250,000.00 (13,752.50) - 06/30/2022 Wells Fargo CD's 1.600 % 1.600 % 02/23/2022 02/24/2025 245,000.00 238,799.05 245,000.00 (6,200.95) - N/A Wells Fargo CD's 2.000 % 2.000 % 08/29/2020 08/22/2022 200,000.00 200,832.00 200,000.00 832.00 - 09/29/2022 Wells Fargo CD's 0.300% 0.300% 01/08/2021 01/08/2024 245,000.00 238,007.70 245,000.00 (6,992.30) - N/A Wells Fargo CD's 0.450 % 0.450 % 04/14/2021 04/15/2024 245,000.00 236,723.90 245,000.00 (8,276.10) - 08/14/2022 Wells Fargo CD's 0.550 % 0.550 % 08/02/2021 08/05/2024 245,000.00 235,383.75 245,000.00 (9,616.25) - N/A Wells Fargo CD's 1.100% 1.100% 01/31/2022 01/31/2025 245,000.00 235,785.55 245,000.00 (9,214.45) - 07/31/2022 Wells Fargo CD's 1.000 % 1.000 % 05/19/2021 05/19/2026 245,000.00 229,658.10 245,000.00 (15,341.90) - N/A Wells Fargo CD's 1.000 % 1.000 % 07/28/2021 07/28/2026 245,000.00 228,183.20 245,000.00 (16,816.80) - N/A Wells Fargo CD's 1.050 % 1.050 % 08/08/2021 08/25/2026 238,000.00 222,534.76 238,000.00 (15,465.24) - N/A Wells Fargo CD's 1.000 % 1.207 % 07/31/2021 07/13/2028 245,000.00 224,373.45 245,000.00 (20,626.55) 06/13/2022 Broker Total 29.5% 4,113,000.00 3,921,998.76 4,113,000.00 (207,871.54) - Cetera Investment Services Money Market 0.010 % 0.010 % N/A N/A - 16,438.13 - - - N/A Cetera Investment Services Municipal Bonds 3.000% 3.118% 12/20/2018 08/01/2022 50,000.00 50,331.50 50,377.67 (46.17) 377.67 N/A Cetera Investment Services Municipal Bonds 3.650% 3.004% 12/20/2018 02/01/2023 250,000.00 252,957.50 256,165.00 (3,207.50) 6,165.00 N/A Cetera Investment Services Municipal Bonds 3.240% 3.240% 11/17/2017 02/15/2023 80,000.00 78,762.40 69,633.48 9,128.92 (10,366.52) N/A Cetera Investment Services Municipal Bonds 3.075% 3.236% 12/20/2018 06/01/2023 50,000.00 50,575.50 49,746.15 829.35 (253.85) N/A Cetera Investment Services Municipal Bonds 5.290% 2.724% 04/18/2019 06/01/2023 260,000.00 269,001.20 291,059.96 (22,058.76) 31,059.96 N/A Cetera Investment Services Municipal Bonds 2.500% 3.181 % 12/20/2018 08/01/2023 35,000.00 34,963.95 34,320.05 643.90 (679.95) N/A Cetera Investment Services Municipal Bonds 3.400% 3.148% 12/20/2018 11/01/2023 125,000.00 126,611.25 126,376.25 235.00 1,376.25 N/A Cetera Investment Services Municipal Bonds 3.400% 3.148% 12/20/2018 11/01/2023 65,000.00 65,837.85 65,715.65 122.20 715.65 N/A Cetera Investment Services Municipal Bonds 2.854% 3.173% 12/20/2018 02/01/2024 100,000.00 100,580.00 99,605.96 974.04 (394.04) N/A Cetera Investment Services Municipal Bonds 2.977% 3.246% 12/20/2018 03/15/2024 250,000.00 251,865.00 248,743.99 3,121.01 (1,256.01) N/A Cetera Investment Services Municipal Bonds 1.940% 1.821 % 01/13/2020 05/01/2024 65,000.00 63,995.10 65,570.70 (1,575.60) 570.70 N/A Cetera Investment Services Municipal Bonds 5.742% 3.658% 04/11/2019 08/01/2024 275,000.00 287,086.25 302,390.00 (15,303.75) 27,390.00 N/A Cetera Investment Services Municipal Bonds 2.528% 1.918% 01/13/2020 12/01/2024 100,000.00 99,466.00 102,999.53 (3,533.53) 2,999.53 N/A Cetera Investment Services Municipal Bonds 3.922% 3.429% 12/20/2018 12/01/2024 204,000.00 210,258.72 208,181.10 2,077.62 4,181.10 N/A Cetera Investment Services Municipal Bonds 4.400% 3.221 % 04/11/2019 07/01/2025 500,000.00 508,020.00 539,101.11 (31,081.11) 39,101.11 07/01/2023 Cetera Investment Services Municipal Bonds 5.640% 3.007% 04/18/2019 08/15/2025 205,000.00 182,913.30 169,737.95 13,175.35 (35,262.05) N/A Cetera Investment Services Municipal Bonds 3.743% 2.740% 04/18/2019 09/15/2025 215,000.00 221,060.85 228,334.53 (7,273.68) 13,334.53 N/A Cetera Investment Services Municipal Bonds 3.379% 1.934% 08/19/2019 10/01/2025 310,000.00 314,718.20 339,739.18 (25,020.98) 29,739.18 N/A Cetera Investment Services Municipal Bonds 2.727% 2.271 % 03/03/2022 12/01/2025 335,000.00 324,102.45 342,781.72 (18,679.27) 7,781.72 N/A Cetera Investment Services Municipal Bonds 5.600% 1.186% 07/28/2020 12/01/2025 45,000.00 49,589.55 55,250.55 (5,661.00) 10,250.55 N/A Cetera Investment Services Municipal Bonds 4.250% 3.258% 04/11/2019 01/01/2026 500,000.00 523,520.00 529,769.03 (6,249.03) 29,769.03 N/A Cetera Investment Services Municipal Bonds 2.420% 1.175% 10/06/2020 03/01/2026 100,000.00 97,593.00 106,734.28 (9,141.28) 6,734.28 N/A Cetera Investment Services Municipal Bonds 1.609% 1.124% 09/24/2020 04/01/2026 285,000.00 269,832.30 292,370.10 (22,537.80) 7,370.10 N/A Cetera Investment Services Municipal Bonds 6.690% 3.356% 04/18/2019 04/15/2026 60,000.00 52,723.80 47,545.20 5,178.60 (12,454.80) N/A Cetera Investment Services Municipal Bonds 5.900 % 1.451 % 07/28/2020 06/15/2026 75,000.00 82,160.25 93,741.75 (11,581.50) 18,741.75 N/A Cetera Investment Services Municipal Bonds 0.000% 1.415% 08/13/2020 07/01/2026 100,000.00 86,514.00 92,037.00 (5,523.00) (7,963.00) N/A Cetera Investment Services Municipal Bonds 3.250% 2.903% 04/18/2019 08/01/2026 500,000.00 506,835.00 514,790.69 (7,955.69) 14,790.69 N/A Cetera Investment Services Municipal Bonds 2.150% 2.203% 07/01/2019 12/01/2026 40,000.00 38,052.00 40,150.64 (2,098.64) 150.64 N/A Cetera Investment Services Municipal Bonds 1.664% 1.150% 08/27/2020 09/01/2026 225,000.00 212,073.75 231,696.00 (19,622.25) 6,696.00 N/A Cetera Investment Services Municipal Bonds 2.375% 1.816% 09/04/2019 12/01/2026 90,000.00 87,967.80 93,395.70 (5,427.90) 3,395.70 N/A Cetera Investment Services Municipal Bonds 2.350% 2.191 % 07/01/2019 12/01/2026 500,000.00 482,020.00 505,385.00 (23,365.00) 5,385.00 N/A Cetera Investment Services Municipal Bonds 3.000% 1.991 % 08/19/2019 02/01/2027 50,000.00 50,810.00 53,551.00 (2,741.00) 3,551.00 N/A Cetera Investment Services Municipal Bonds 3.150% 2.034% 08/19/2019 03/15/2027 100,000.00 100,246.00 109,138.50 (8,892.50) 9,138.50 N/A Cetera Investment Services Municipal Bonds 3.332% 3.120% 04/18/2019 04/15/2027 500,000.00 509,255.00 507,783.94 1,471.06 7,783.94 N/A Cetera Investment Services Municipal Bonds 3.865% 2.470% 08/19/2019 05/01/2027 55,000.00 56,922.25 60,986.48 (4,064.23) 5,986.48 05/01/2025 Cetera Investment Services Municipal Bonds 3.553% 2.289% 08/19/2019 05/01/2027 55,000.00 56,078.55 60,468.04 (4,389.49) 5,468.04 05/01/2026 Cetera Investment Services Municipal Bonds 3.230% 1.828% 08/19/2019 05/15/2027 145,000.00 146,145.50 160,827.31 (14,681.81) 15,827.31 N/A Cetera Investment Services Municipal Bonds 1.925% 1.719% 11/23/2021 06/01/2027 310,000.00 292,038.60 313,447.46 (21,408.86) 3,447.46 Make -Whole Call Cetera Investment Services Municipal Bonds 1.861 % 1.254% 06/07/2021 07/01/2027 410,000.00 379,951.10 412,336.71 (32,385.61) 2,336.71 N/A Cetera Investment Services Municipal Bonds 3.000% 3.101 % 05/18/2020 09/01/2027 65,000.00 66,340.95 69,180.58 (2,839.63) 4,180.58 09/01/2025 Cetera Investment Services Municipal Bonds 2.817% 2.817% 09/25/2019 10/01/2027 35,000.00 29,155.00 27,969.55 1,185.45 (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 91,618.00 98,088.31 (6,470.31) (1,911.69) N/A Cetera Investment Services Municipal Bonds 3.270 % 2.141 % 08/19/2019 03/15/2028 155,000.00 155,753.30 170,805.09 (15,051.79) 15,805.09 09/15/2027 Cetera Investment Services Municipal Bonds 2.974% 2.574% 11/07/2019 04/01/2028 75,000.00 72,876.75 77,253.00 (4,376.25) 2,253.00 N/A Cetera Investment Services Municipal Bonds 2.125% 1.904% 11/23/2021 06/01/2028 110,000.00 103,310.90 111,525.06 (8,214.16) 1,525.06 N/A Cetera Investment Services Municipal Bonds 2.547% 1.240% 08/10/2021 07/01/2028 125,000.00 121,441.25 136,101.16 (14,659.91) 11,101.16 N/A Cetera Investment Services Municipal Bonds 3.140% 2.004% 08/19/2019 08/01/2028 500,000.00 495,155.00 547,105.00 (51,950.00) 47,105.00 08/01/2027 Cetera Investment Services Municipal Bonds 3.000% 2.199% 05/19/2020 08/15/2028 90,000.00 91,695.60 95,401.80 (3,706.20) 5,401.80 08/15/2025 Cetera Investment Services Municipal Bonds 1.692% 1.813% 11/24/2021 10/01/2028 180,000.00 165,002.40 179,188.74 (14,186.34) (811.26) N/A Cetera Investment Services Municipal Bonds 3.000% 1.942% 08/19/2019 06/01/2029 115,000.00 116,999.85 125,961.80 (8,961.95) 10,961.80 N/A Cetera Investment Services Municipal Bonds 4.000% 3.214% 03/22/2021 09/01/2031 60,000.00 62,333.40 64,292.00 (1,958.60) 4,292.00 09/01/2024 Cetera Investment Services Municipal Bonds 3.500% 2.699% 11/23/2021 02/01/2033 50,000.00 50,746.50 54,390.44 (3,643.94) 4,390.44 02/01/2025 Cetera Investment Services Municipal Bonds 3.250% 2.655% 08/19/2019 06/01/2029 75,000.00 76,741.50 79,860.31 (3,118.81) 4,860.31 02/01/2025 Cetera Investment Services Municipal Bonds 3.125% 2.303% 11/23/2021 10/01/2034 50,000.00 50,927.50 54,773.69 (3,846.19) 4,773.69 04/01/2027 Cetera Investment Services Municipal Bonds 3.125% 2.456% 11/23/2021 02/01/2035 50,000.00 50,984.50 54,236.11 (3,251.61) 4,236.11 02/01/2026 Broker Total 70.5% 9,454,000.00 9,390,956.00 9,818,118.00 (443,600.13) 364,118.00 TOTAL INVESTMENTS 100.0% 3/31/2022 % of 2/28/2022 % of Monthly Maturity Current Value % Product Type Total Value Total Total Value Total Change Less than 1 year $616,191.83 4.6% El Money Market $33,308.43 0.3% $52,785.63 0.4% ($19,477.20) 1 - 2 years 1,137,442.45 8.5% CD's 2,290,281.46 17.2% 2,333,728.99 17.1% (43,447.53) 2-3years 1,607,498.32 12.1% Government Bonds 1,614,847.00 12.1% 1,659,660.45 12.1% (44,813.45) 3-4years 2,937,267.85 22.1% Municipal Bonds 9,374,517.87 70.4% 9,624,620.56 70.4 % 250,102.69 4 - 5 years 3,548,707.46 26.7% TOTAL $13,312,954.76 100.0% $13,670,795.63 100.0% ($357,840.87) 5+years 3,465,846.85 26.0% TOTAL $13,312,954.76 100.0% Money Market $4,000,000.00 " 0.3% CD's 17.2% $3,500,000.00 .... .... .... .... $3,548,707 .... $3,465,847„ $3,000,000.00... $2,937,268 )) $2,500,000.00 _ .... .... .... .... .. $2,000,000.00 _ i an • $1,607,498 $1,500,000.00 .... .... $1,137,442 $1,000,000.00 URN $616,192 li $500,000.00 Municipal Bonds Government Bonds $0.00 70•q/ 12•1% Less than i-2years 2-3 years 3- 4 years 4-5years 5+years year ELECTRIC DIVISION Operating Revenue March 2022 CLASS AMOUNT KWH /KWH Street Lights $22.02 404 $0.05450 Electric Residential Service $421,288.46 3,997,010 $0.10540 All Electric Residential Service $26,125.73 277,147 $0.09427 Electric Small General Service $147,519.45 1,494,867 $0.09868 Electric Large General Service $586,081.25 6,888,720 $0.08508 Electric Large Industrial Service $687,451.16 9,474,000 $0.07256 Total $1,868,488.07 22,132,148 $0.08442 Power Adjustment $0.00000 Rate Without Power Adjustment $0.08442 Electric Division Year -to -Date M2022$A--t 02021$A--t ■2022KWH110 02021 KWH110 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 ,I IIWIIWIIu 1 F[ Mur011mr-1 IIWIIWIIII 1 IIWIIWIIII 1 IIWIIWIIu 1 IIWIIWIIII 1 Street Lights Residential All Elec. Small Gen. Large Gen. Large For Resale Resid. Srv. Srv. Industrial NOTE: Sales for resale includes capacity sales and market sales. Total NATURAL GAS DIVISION Operating Revenue MARCH 2O22 CLASS AMOUNT MCF /$ MCF Residential $517,352.61 58,158 $8.89564 Commercial $380,476.80 43,016 $8.84501 Large Industrial $30,431.36 3,692 $8.24251 Large Industrial Contracts $510,456.04 89,044 $5.73263 Total $1,438,716.81 193,910 $7.41951 Fuel Adjustment $0.00000 Rate Without Fuel Adjustment $7.41951 Natural Gas Division Year -to -Date ® 2022 $ Amount 0 2021 $ Amouni ■ 2022 MCF 132021 MCF 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 IL 6m--i Emma== Gas Residential Gas Commercial Large Industrial Large Industrial Total Contracts 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 4 of Exempt Handbook Section 4 of Non -Exempt Handbook BOARD ACTION REQUESTED: None EXEMPT SECTION 4 — WAGE AND SALARY INFORMATION PAY PERIOD, PAYDAYS All employees are paid every other Thursday for the two -week period ending the preceding Sunday at 12:00 midnight. Should a payday fall on a holiday, paychecks/direct deposits will be available the preceding day. PAYROLL DEDUCTIONS HUC is required to deduct federal and state income taxes, Social Security tax, and any court - ordered deductions such as child support from paychecks/direct deposits. HUC is also required to deduct the employee's contribution to the Public Employee Retirement Association (PERA). Other deductions may be made from a paycheck/direct deposit such as deferred compensation, and insurance premiums. These payroll deductions may be made only with the employee's written consent. OVERTIME Exempt employees may earn compensatory time on an hour -for -hour basis for all hours worked in excess of 40 hours per week. Exempt employees must use their compensatory time by December 31 of the year in which it is earned or it will be forfeited. Accrued compensatory time shall not be paid out to exempt employees upon separation from employment. COMPENSATION PLAN The Hutchinson Utilities Commission (HUC) has considered the existing positions for HUC and the current economic conditions. For each position there shall be a title, job description, and a pay scale level assigned. This plan covers all regular full-time, exempt positions/employees only. Plan Objectives To establish and maintain a compensation plan that enables HUC to be highly competitive within our defined industry. To lead or exceed the market in attracting and retaining qualified, reliable and motivated employees who are committed to quality and excellence for those we serve. To ensure, subject to the financial condition of HUC, that employees receive fair and equitable compensation in relation to their individual contributions to HUC's success. To follow the principles of pay equity in establishing and maintaining pay relationships among positions. To ensure program flexibility necessary to meet changing economic, competitive, technological, and regulatory conditions encountered by HUC. To balance compensation and benefit needs with available resources. Open Salary Range HUC shall adopt an Open Salary Range compensation plan that will allow for maximum flexibility since there are not defined or pre -calculated "steps". Employee movement is based solely on performance. The open salary range concept rewards good and exceptional performers and advances employees to the market rate more quickly. Allocation of New Positions When a new position is created for which no appropriate description exists or when the duties of an existing position are sufficiently changed so that no appropriate description exists, the Commission, after recommendation of the General Manager/HR, shall cause an appropriate job description -specification to be written for said position. Pay Scales Pay scales will be adjusted on an annual basis in accordance with adjustments made in the labor agreement. Exempt Employees Each position will have a nine -month probationary period. After satisfactory completion of the probationary period, an increase may be granted as warranted by the annual performance appraisal. Thereafter, consideration for increases will be given annually at the first of the year. The General Manager reserves the discretion to adjust individual rates as required. The Commission will determine any pay increase for the General Manager. Consideration for market adjustment will be made each January 1. The General Manager shall maintain the discretion to hire at any point based on the qualifications, experience, market conditions or other relevant factors, to secure the best candidate for the position. Performance Evaluations For all regular full-time employees, a performance appraisal or evaluation will be made on an annual basis. An evaluation made by the employee's director, manager or supervisor shall be submitted in writing to the employee and the General Manager. All evaluations will be forwarded to the Human Resources for filing in the employee files. Evaluations shall be based upon the performance of the individual in the position measured against established job performance criteria. Such criteria may include level of knowledge, skills, ability, quality of work, personal work traits, compliance with established HUC or departmental rules and regulations or any other criteria that is indicative of performance. The performance appraisal process is the application of performance standards to past performance. In appraising an employee, these are the basic levels of performance: 5 — Outstanding Performer — Performance is exceptional in all areas and is recognizable as being far superior to others. 4 — Exceeds Expectations — Results clearly exceed most positions requirements. Performance is of high quality and is achieved on a consistent basis. 3 — Solid Performer — Competent and dependable level of performance. Meets performance standards of the job. 2 — Needs Improvement — Performance is deficient in certain area(s). Improvement is necessary. 1— Unsatisfactory — Results are generally unacceptable and require immediate improvement. Results - The results of the exempt employee's evaluation will normally have the following effect on his/her salary per the following Merit Increase Guide below. The percent increase given to an employee within a certain performance score range will be based on where the employee's current salary is at in their respective pay grade range approved by the Commission Performance Score: 0 to 1.0 1.1 to 2.0 2.1 to 3.0 3.1 to 4.0 4.1 to 5.0 % of Increase Range 0% - 0% 0% - 2% 1% - 5% 2% - 6% 3% - 7% Market Conditions Notwithstanding any language to the contrary, HUC retains the right to deviate from the pay plan when, in the sole judgment of the Commission, market conditions or other circumstances dictate such a decision. Market conditions are defined as the availability of a particular position. Eligible employees include all non -represented employees except those who have been subject to disciplinary action per the HUC Employee Handbook as follows: An additional consequence of disciplinary action more severe than oral reprimand will be the permanent loss of the January I market adjustment in the calendar year following such disciplinary action. This will occur unless the Director in charge and the General Manager decide otherwise. Annual Market Adjustment Consideration On an annual basis, a market survey will be reviewed. As a result of the current year marketplace, an additional increase may be deemed necessary. The General Manager maintains final approval responsibility for salary increases. Any market adjustment on January I of any year shall be separate and apart from the individual merit increases. In determining a recommendation for an annual market adjustment, the General Manager shall consider, at least the following information: I. U.S. and Minneapolis/St. Paul consumer -priced index changes (CPIU & CPIW) 2. Social Security calculation of cost of living increase 3. Unemployment rate 4. Employee turnover rate 5. Area wage survey 6. Legislative growth factor constraints 7. Bargaining Unit Increase Modification of the Plan HUC reserves the right to modify any or all of the components or to vary from any of the components of the Compensation Plan at its discretion and at any time. Review of the Plan It is recommended that HUC's General Manager/HR annual review and maintain its Position Classification Plan. As deemed necessary, the General Manager/HR would recommend any changes to the Commission. It is further recommended that a comprehensive review be completed every five years. WORKER'S COMPENSATION An employee who is injured on the job or becomes ill due to job -related reasons is eligible for worker's compensation benefits. HUC's worker's compensation insurance provider shall pay the employee approximately 2/3 of the weekly gross wage or salary lost due to injury or illness and HUC shall pay the additional 1/3 of the weekly gross wage for up to 120 work days. Thereafter, the employee may use accrued sick leave, vacation leave, or compensatory time to pay the additional 1/3 lost wage or salary. PERA and FICA are not deducted from the worker's compensation portion of the paycheck. NON-EXEMPT SECTION 4 — WAGE AND SALARY INFORMATION PAY PERIOD, PAYDAYS All employees are paid every other Thursday for the two -week period ending the preceding Sunday at 12:00 midnight. Should a payday fall on a holiday, paychecks/direct deposits will be available the preceding day. PAYROLL DEDUCTIONS HUC is required to deduct federal and state income taxes, Social Security tax, and any court - ordered deductions such as child support from paychecks/direct deposits. HUC is also required to deduct the employee's contribution to the Public Employee Retirement Association (PERA). Other deductions may be made from a paycheck/direct deposit such as union dues, deferred compensation, and insurance premiums. These payroll deductions may be made only with the employee's written consent. OVERTIME See Union Contract. COMPENSATION PLAN Performance Evaluations For all regular full-time employees, a performance appraisal or evaluation will be made on an annual basis. An evaluation made by the employee's director, manager, or supervisor will be submitted in writing to the employee and the General Manager. All evaluations will be forwarded to the Human Resources for filing in the employee files. Evaluations shall be based upon the performance of the individual in the position measured against established job performance criteria. Such criteria may include level of knowledge, skills, ability, quality of work, personal work traits, compliance with established HUC or departmental rules and regulations or any other criteria that is indicative of performance. The performance appraisal process is the application of performance standards to past performance. In appraising an employee, these are the basic levels of performance: 5 — Outstanding Performer— Performance is exceptional in all areas and is recognizable as being far superior to others. 4 — Exceeds Expectations — Results clearly exceed most positions requirements. Performance is of high quality and is achieved on a consistent basis. 3 — Solid Performer — Competent and dependable level of performance. Meets performance standards of the job. 2 — Needs Improvement — Performance is deficient in certain area(s). Improvement is necessary. 1— Unsatisfactory — Results are generally unacceptable and require immediate improvement. WORKER'S COMPENSATION An employee who is injured on the job or becomes ill due to job -related reasons is eligible for worker's compensation benefits. WC's worker's compensation insurance provider will pay the employee approximately 2/3 of the weekly gross wage or salary lost due to injury or illness and HUC shall pay the additional 1/3 of the weekly gross wage for up to 120 work days. Thereafter, the employee may use accrued sick leave, vacation leave, or compensatory time to pay the additional 1/3 lost wage or salary. PERA and FICA are not deducted from the worker's compensation portion of the paycheck. HUTCHINSON UTILITIES COMMISSION ,c�,« Board Action Form 'AlUTlt Agenda Item: Approve Policy Changes Jeremv Carter App Changes to Policies 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. Travel Expenses — Exempt Travel Expenses — Non -Exempt BOARD ACTION REQUESTED: Approve Policy Changes EXEMPT TRAVEL EXPENSES Business Related Vehicle Operation Travel within the State shall be by HUC vehicle if possible. If a HUC vehicle is not available for in -State travel, or is not practical to use, then an employee may seek approval from Director or Manager to use a personal vehicle for transportation. The following rules shall apply: • The employee shall be reimbursed for mileage at the current IRS mileage reimbursement rate. • HUC is not liable for damage to personally owned vehicles used for HUC business. • HUC may request proof of insurance from employees who use personally owned vehicles on HUC business. • Travel to and from events should be by the most direct route possible. • Employees are expected to return in a timely manner. Travel outside of the State must be approved by the employee's Director or Manager. If it is appropriate to drive, the employee shall follow the same rules as travel within the State. Whether a HUC vehicle, or a personal vehicle is used, the employee is responsible for any traffic or parking citations the employee receives while operating such vehicle on HUC business. Employees who drive a HUC vehicle home may use the vehicle only for HUC business purposes. Employees who are members of the Hutchinson Fire Department or Rescue Squad may use a HUC vehicle to travel to the fire station to respond to a call when the firefighter or rescue squad member is on the job with HUC at the time of the call_ If the firefighter or rescue squad member is at HUC, they must use a personal vehicle to respond to the call. Air Travel and Rental Vehicles It is recognized that air travel may be a necessary part of conducting business for HUC. In the circumstances of air travel, the following rules shall apply: • Commercial carriers shall be used. • Tickets should be at "standard" or "coach" class. • Travel to and from the airports shall follow the Business Related Vehicle Operation section. • Travel outside of the State must be approved by the employee's Director or Manager. • Only employee's air travel expenses shall be prepaid, charged, or reimbursed at cost. Rental vehicles may be used when traveling outside of the State. Reservations of a rental vehicle shall be made at the same time air travel is arranged. Renting a vehicle must be approved by the employee's Director or Manager. Overnight Stays, Meals and Entertainment Expenses Hotel reservations shall be made prior to the employee leaving for out of town travel. The following items shall apply to overnight stays: • Hotel accommodations for the employee must be approved by the employee's Director or Manager. • In the event the employee is traveling on HUC business and experiences inclement weather, to the extent that it is not safe to travel, or the employee is not able to travel due to some circumstance that is beyond their control, then no prior approval for hotel accommodations are necessary. • Hotel rooms at convention or seminar sites are approved accommodations. • Reimbursement is limited to employees and business related guests, and must be directly related to business. The following shall apply to expenses associated with meals: • Meals shall be limited to a maximum of i1rliaed states, Gerieral Services Adiidrli.4.mtra:aiorl Per i)iefi� I�a:a:es by ioa.atiori, rate is a maximum and not an allowance. • Meal reimbursement is limited to employees. • Expenses associated with alcoholic beverages shall not be reimbursed. Expense Report An expense report shall be filled out for all reimbursement requests for purchases using personal funds. Unsupported expenses using personal funds shall not be reimbursed by HUC. An expense report shall also be filled out for all company travel purchases. Unsupported expenses on an HUC credit card shall be reimbursed to HUC by the employee. The expense report must state the type of expense (meal, travel, hotel, etc.), the date and the business purpose. Alcohol is not a reimbursable expense. It is the employee's responsibility to obtain an itemized receipt. The expense report shall be approved by your Director, Manager, or Supervisor before submitting to the Financial Manager. NON-EXEMPT TRAVEL EXPENSES Business Related Vehicle Operation Travel within the State shall be by HUC vehicle if possible. If a HUC vehicle is not available for in -State travel, or is not practical to use, then an employee may seek approval from Director or Manager to use a personal vehicle for transportation. The following rules shall apply: • The employee will be reimbursed for mileage at the current IRS mileage reimbursement rate. • HUC is not liable for damage to personally owned vehicles used for HUC business. • HUC may request proof of insurance from employees who use personally owned vehicles on HUC business. • Travel to and from events should be by the most direct route possible. • Employees are expected to return in a timely manner. Travel outside of the State must be approved by the employee's Director or Manager. If it is appropriate to drive, the employee shall follow the same rules as travel within the State. Whether a HUC vehicle, or a personal vehicle is used, the employee is responsible for any traffic or parking citations the employee receives while operating such vehicle on HUC business. Employees who drive a HUC vehicle home may use the vehicle only for HUC business purposes. Employees who are members of the Hutchinson Fire Department or Rescue Squad may use a HUC vehicle to travel to the fire station to respond to a call when the firefighter or rescue squad member is on the job with HUC at the time of the call_ If the firefighter or rescue squad member is at HUC, they must use a personal vehicle to respond to the call. Air Travel and Rental Vehicles It is recognized that air travel may be a necessary part of conducting business for HUC. In the circumstances of air travel, the following rules shall apply: • Commercial carriers shall be used. • Tickets should be at "standard" or "coach" class. • Travel to and from the airports shall follow the Business Related Vehicle Operation section. • Travel outside of the State must be approved by the employee's Director or Manager. • Only employee's air travel expenses will be prepaid, charged, or reimbursed at cost. Rental vehicles may be used when traveling outside of the State. Reservations of a rental vehicle shall be made at the same time air travel is arranged. Renting a vehicle must be approved by the employee's Director or Manager. Overnight Stays and Meals Hotel reservations shall be made prior to the employee leaving for out of town travel. The following items shall apply to overnight stays: • Hotel accommodations for the employee must be approved by the employee's Director or Manager. • In the event the employee is traveling on HUC business and experiences inclement weather, to the extent that it is not safe to travel, or the employee is not able to travel due to some circumstance that is beyond their control, then no prior approval for hotel accommodations are necessary. • Hotel rooms at convention or seminar sites are approved accommodations. • Reimbursement is limited to employees and business related guests, and must be directly related to business. The following shall apply to expenses associated with meals: • Meals shall be limited to a maximum of i1rliaed states, Gerieral Services Adiidrli.4.mtra:aiorl Per i)iefi� I�a:a:es by loa.atiori, rate is a maximum and not an allowance. • Meal reimbursement is limited to employees. • Expenses associated with alcoholic beverages will not be reimbursed. Expense Report An expense report shall be filled out for all reimbursement requests for purchases using personal funds. Unsupported expenses using personal funds will not be reimbursed by HUC. An expense report shall also be filled out for all company travel purchases. Unsupported expenses on an HUC credit card shall be reimbursed to HUC by the employee. The expense report must state the type of expense (meal, travel, hotel, etc.), the date and the business purpose. Alcohol is not a reimbursable expense. It is the employee's responsibility to obtain an itemized receipt. The expense report shall be approved by your Director, Manager, or Supervisor before submitting to the Financial Manager. HUTCHINSON UTILITIES COMMISSION��` Board Action Form �r�turscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: Approval of HTI/TDK NG Transportation and Commodity Purchase Agreement Presenter: John Webster Agenda Item Type: Time Requested (Minutes): New Business Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Hutchinson Technology Inc., a TDK Group Company, currently transports natural gas on Hutchinson Utilities' transmission and distribution systems. The current agreement expires May 1, 2022 at 9.00 A.M. This Agreement provides transportation and commodity purchasing rights to HTI/TDK on Hutchinson Utilities' facilities for a one (1) year term. BOARD ACTION REQUESTED: Approval of HTI/TDK's Natural Gas Transportation and Commodity Purchase Agreement. Fiscal impact: Approx. $90,000 per year Included in current budget: Yes Budget Change: No PROJECT SECTION: Total Project Cost: Remaining Cost: STREET HUTCHINSON MINNESOTA 55350 PURCHASEAGREEMENT THIS AGREEMENT .; MADE AND ENTERED INTO THIS " DAY PR 2 BE EFFECTIVE S OF THE 1 s-r DAY OF b AND BETWEEN DOFFICES LOCATED AT 40 WEST HIGHLAND PARKDRIVE COMMISSION k MUNICIPAL UTILITY LOCATED AT 225 MICHIGAN WHEREAS,TI DESIRES TO PURCHASE, AND HUC SHALL, PROVIDE, FIRM GAS FOR USE AT TI'S HUTCHINSON HEADQUARTERS/PLANT; AND, PURCHASE,WHEREAS, HTI DESIRES TO h NATURAL GAS TRANSPORTATION HEADQUARTERS/PLANT; RELIANCEAGREEMENT,R. TRANSPORTATION.TO PROVIDE FIRM GAS AND NOW, THEREFORE, IN CONSIDERATION OF THE FOREGOING AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, THE PARTIES MAKE THE FOLLOWING AGREEMENT: PAGE 1 OF 15 HUC SHALL PROVIDE, AND HTI SHALL ACCEPT, FIRM GAS AND TRANSPORTATION, COMMENCING MAY 1, 2022, AT 9:00 A.M. AND TERMINATING ON MAY 1, 2023, AT 9:00 A.M. 1. AVAILABILITY A. GENERAL FIRM TRANSPORTATION SERVICE UNDER THIS AGREEMENT SHALL BE AVAILABLE TO HTI UNDER THE TERMS AND CONDITIONS OF THIS AGREEMENT. THIS SERVICE MAY NOT BE CURTAILED OR INTERRUPTED EXCEPT PURSUANT TO THE TERMS OF THIS AGREEMENT. B. THE COST FOR ADDITIONAL CAPACITY OR NEW INSTALLATIONS UTILIZING THIS SERVICE SHALL BE BILLED TO HTI. HTI MUST SUBMIT A WRITTEN REQUEST TO HUC FOR ADDITIONAL CAPACITY/NEW INSTALLATIONS. ALL ADDITIONAL COSTS MUST BE PRE -APPROVED, IN WRITING, BY HTI. C. COMPLIANCE WITH AGREEMENTS SERVICE UNDER THIS AGREEMENT SHALL NOT COMMENCE UNTIL BOTH PARTIES HAVE FULLY EXECUTED THIS AGREEMENT AND COMPLIED WITH ALL RELEVANT REQUIREMENTS CONTAINED HEREIN. D. AGREEMENT CHANGES HUC HAS THE RIGHT TO MODIFY THIS AGREEMENT DUE TO CHANGES IMPOSED BY HUC'S CURRENT NATURAL GAS TRANSMISSION PROVIDERS AND FEDERAL, STATE AND LOCAL REGULATORS/AUTHORITIES. 2. TERM THE INITIAL TERM FOR SERVICE UNDER THIS AGREEMENT IS ONE (1) YEAR. HTI MUST NOTIFY HUC IN WRITING THREE 3 MONTHS PRIOR TO THE EXPIRATION OF THE TERM IF HTI DESIRES TO CONTINUE SERVICE UNDER THIS AGRE MENT. IF HTI HAS COMPLIED WITH ALL TERMS OF THIS AGREEMENT, AND HAS NO OUTSTANDING ARREARAGES, HTI 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 HTI AND HUC, THE PARTIES PAGE 2 OF 15 AGREE TO A MINIMUM TERM OF ONE (1) YEAR. IF SUCH TIMELY NOTICE IS NOT PROVIDED BY HTI, HUC IS NOT OBLIGATED TO RENEW SERVICE FOR HTI. 3. RATES A. RATES FOR SERVICE THE FOLLOWING CHARGES SHALL APPLY TO THE FIRM COMMODITY AND TRANSPORTATION CAPACITY TO BE PROVIDED TO HTI BY HUC: COMMODITY, ALL NATURAL GAS PURCHASES SHALL BE PRICED AT THE MONTHLY INDEX AS PUBLISHED IN PLAITS FERC GAS MARKET REPORT FOR NORTHERN NATURAL GAS CO. AT VENTURA, IOWA PLUS OR MINUS ANY INDEX PREMIUM OR DISCOUNT BASED ON CURRENT MARKET CONDITIONS AT THE TIME THE GAS IS PURCHASED. IN THE EVENT THAT HUC HAS ENTERED INTO A "COMMODITY PREPAY PURCHASE PROGRAM" (CPPP), HUC SHALL COORDINATE WITH HTI TO PLACE VOLUMES OF GAS, PRE -PURCHASED FOR HTI, INTO THE HUC CPPP. HTI MAY PLACE NO GREATER THAN 50% OF THE PRE - PURCHASED DAILY VOLUMES INTO THE CPPP. HUC SHALL MANAGE THE MONTHLY VOLUMES PLACED INTO THE CPPP ON BEHALF OF HTI. HUC IS CURRENTLY PROVIDING A CPPP DISCOUNT TO INDEX OF $0.04 PER DTH. THIS DISCOUNT 1S IN EFFECT FROM APRIL 1, 2019 THROUGH OCTOBER, 2026. HUC SHALL PURCHASE HTI'S FIRM BASE LOAD NATURAL GAS REQUIREMENTS, FOR THE FOLLOWING MONTH, WITHIN 24 BUSINESS HOURS OF RECEIPT OF HTI'S FIRST OF THE MONTH BASE LOAD NOMINATION. 2. MONTHLY DEMAND CHARGE MONTHLY DEMAND CHARGE PER -- $1 0.33 MCF OF BILLING DEMAND 3. TRANSPORTATION CHARGE TRANSPORTATION CHARGE, PER METERED DTH -- $1 .00 (TRANSMISSION - $0.20/DTH) (DISTRIBUTION - $0.80/DTH) PAGE 3 OF 15 4. MONTHLY METERwwCHARGE METER FEE -- $2 1 S/METER 5. TAXES THE ABOVE CHARGES DO NOT INCLUDE ANY TAXES. B. METERING HTI SHALL PAY ALL COSTS ASSOCIATED WITH THE INSTALLATION OF METERS AND ANY OTHER EQUIPMENT NECESSARY FOR HTI TO RECEIVE SERVICE UNDER THIS AGREEMENT UNLESS OTHERWISE AGREED TO IN WRITING BETWEEN HTI AND HUC. 4. RECONNECTION CHARGE ANY TRANSPORTATION CUSTOMER RECEIVING SERVICE PURSUANT TO THIS AGREEMENT MUST PAY THE "RECONNECTION CHARGE" AS SET FORTH WHEN REQUESTING A RETURN TO HUC'S SYSTEM SUPPLY FOR ALL OR ANY PORTION OF THE TRANSPORTATION CUSTOMER'S DAILY REQUIREMENTS. THE RECONNECTION CHARGE SHALL BE CALCULATED ON A MONTHLY BASIS AND SHALL CONSIST OF A REALIGNMENT SURCHARGE THAT APPLIES TO ALL VOLUMES MEASURED BY HTI'S INDUSTRIAL METER. A. TERM SIX MONTHS - COMMENCING WITH THE FIRST MONTH FOLLOWING THE TERMINATION OF THIS AGREEMENT B. REALIGNMENT SURCHARGE THE REALIGNMENT SURCHARGE SHALL BE IN ADDITION TO THE INDUSTRIAL RATE AS PUBLISHED BY HUC. THE REALIGNMENT SURCHARGE (RS) SHALL BE CALCULATED AS FOLLOWS: RS = MONTHLY INSIDE FERC VENTURA INDEX, AS PUBLISHED BY PLATT'S "GAS DAILY", PLUS/MINUS THE NNG VENTURA TO NBPL VENTURA MONTHLY PREMIUM MINUS HUC'S "BASE RATE" ($7.85 IN 2017). PROVIDED, HOWEVER, THAT SUCH SURCHARGE SHALL NEVER BE LESS THAN $0.00. PAGE 4 OF 15 5. EARLY TERMINATION HTI MAY TERMINATE THIS AGREEMENT AT ANY TIME WITHOUT PENALTY. IN THE EVENT THAT HTI TERMINATES THIS TRANSPORTATION AND COMMODITY PURCHASE AGREEMENT EARLY, HTI IS BOUND TO PAY ALL AMOUNTS OWED TO HUC, TRANSPORTATION AND COMMODITY, THROUGH THE END OF THE MONTH IN WHICH NATURAL GAS HAS BEEN PRE -PURCHASED BY HUC FOR HTI. (REFER TO SECTION 9 - FIRM GAS SUPPLY, SUBSECTIONS K AND 0. IN THE EVENT THAT HTI TERMINATES THIS TRANSPORTATION AND COMMODITY AGREEMENT AND RETURNS TO HUC'S SYSTEM SUPPLY THEN HTI SHALL COMPLY WITH SECTION 4 - RECONNECTION CHARGE AS STATED ABOVE. 6. BILLING AND PAYMENT A. BILLING INVOICE WILL BE RENDERED TO HTI, OR ITS AGENT, BY THE FIFTEENTH DAY OF THE MONTH FOLLOWING THE MONTH IN WHICH SERVICE IS RENDERED BY HUC. B. PAYMENT PAYMENT IS DUE FROM HTI ON OR BEFORE THE TENTH DAY FOLLOWING THE DATE THE BILL IS ISSUED BY HUC. A LATE PAYMENT CHARGE OF ONE AND ONE-HALF PERCENT PER MONTH, OR THE LEGALLY AUTHORIZED MAXIMUM INTEREST RATE, WHICHEVER IS LOWER, SHALL BE LEVIED ON ANY UNPAID BALANCE. 7. CONDITIONS OF,,,,,SERVICE A. HUC HEREBY CERTIFIES THAT IT HAS SUFFICIENT FIRM TRANSPORTATION CAPACITY TO PROVIDE THE AMOUNT OF FIRM TRANSPORTATION SERVICE TO HTI PURSUANT TO THE TERMS OF THIS AGREEMENT FOR THE TERM OF THIS AGREEMENT. C. UNLESS OTHERWISE AGREED BETWEEN HTI AND HUC, HTI WILL REIMBURSE HUC FOR THE COST OF METERING AND ANY OTHER EQUIPMENT AS REQUIRED BY HUC TO PROVIDE SERVICE TO HTI UNDER THIS AGREEMENT. ALL SUCH EQUIPMENT SHALL REMAIN THE PROPERTY OF HUC. HUC SHALL SUBMIT A WRITTEN ESTIMATE TO HTI ITEMIZING ALL COSTS ASSOCIATED WITH THE INSTALLATION OF REQUIRED METERING AND OTHER EQUIPMENT NECESSARY FOR HTI TO RECEIVE SERVICE UNDER THIS AGREEMENT. HTI MUST PROVIDE PAGE 5 OF 15 WRITTEN APPROVAL TO HUC AUTHORIZING PURCHASE OF SAID EQUIPMENT. D. UNLESS OTHERWISE AGREED TO IN WRITING BY HUC AND HTI, AUTOMATIC TELEMETERING EQUIPMENT 1S REQUIRED. HTI SHALL PROVIDE TELEPHONE, COMPUTER AND OTHER INTERFACES, AS WELL AS ELECTRIC CONNECTIONS TO THE METER(S), AS AGREED TO BY HTI AND HUC. ALL MONTHLY UTILITY FEES (TELEPHONE, ELECTRICITY, ETC.) SHALL BE BORNE BY HTI. HTI SHALL PROVIDE HUC WITH ACCESS SO THAT HUC MAY OPERATE AND MAINTAIN SAID EQUIPMENT. E. HUC SHALL PROVIDE HTI (OR AGENT) WITH A DAILY USAGE REPORT VIA EMAIL FOR NOMINATION PURPOSES. 8. NOMIwNATIONS A. FIRST OF THE MONTH NOMINATIONS, BY 7-00 A.M. CENTRAL CLOCK TIME ("C.C.T."), BY THE 1 5TH DAY OF THE MONTH PRIOR TO GAS FLOW, HTI, OR ITS DESIGNATED AGENT, SHALL PROVIDE HUC A WRITTEN ESTIMATE OF HTI'S DAILY FIRM BASE LOAD LEVEL OF NATURAL GAS REQUIRED FOR THE FOLLOWING MONTH. IN THE EVENT HUC HAS NOT RECEIVED THE BASE LOAD NOMINATION FROM HTI BY THE ABOVE DESIGNATED TIME, HUC SHALL NOMINATE THE CURRENT MONTH'S BASE LOAD LEVEL FOR THE FOLLOWING MONTH. B. DAILY NOMINATIONS HTI, OR ITS DESIGNATED AGENT, SHALL NOTIFY HUC OF ANY REQUESTED CHANGE TO ITS NOMINATION, IN WRITING, BY 7:00 A.M. C.C.T AT LEAST ONE (1) BUSINESS DAY PRIOR TO THE DATE OF THE REQUESTED CHANGE. HUC SHALL GRANT SUCH REQUESTS IN ITS REASONABLE DISCRETION. C. GAS DAY THE GAS DAY SHALL RUN FROM 9:00 A.M. TO 9:00 A.M. CENTRAL STANDARD TIME. 9. FIRM GASSUPPLY WHEREAS, HTI SHALL HAVE A CHOICE OF PRICING MECHANISMS INCLUDING BUT NOT LIMITED TO; MONTHLY INDEX, PAGE 6 OF 15 DAILY INDEX AND FIXED PRICE FOR SUPPLY PURCHASES FROM I f UTCl iINSON. A., I IUC SI -IALL PURCHASE NArURAL GAS QUANTITIES AS 131REC'"T ED BY HTL B. HUC WILL BE LIMITING PURCHASE rERMS FOR ALL NAT1.1RAIL GAS PURCHASES FOR I il I 1 0 A SINGLE MONTH, FUTURES ca,q'I-RACTS EXTENDING BEYOND A SINGLE MONTH WILL No r BE ALLOWED. C. Al L NKI"URAL GAS PURCHASED BY I IU(' ' I FOR H I I SI lAl L � 1311::.:;.�* DELIVERED ON"'ll IE N01-:?T1 IERti BoRDER PIPELINE TO THE rRlMo�n /TRIMON'T" DEL�VERYPOINT'. D. HUC SHALL rRANSPOR I ALI I 1 11 QUAwITIES FR'r.,'.'.')M THE HUC PIPELINE T"RIMONT/TRIMON'T' REC-Eip r F'OINT170 TI IE 1 11 F1 Cl IINSON I f"TI PLAINT SAS PERn fE "IC IRm GAS AND rRlkNSPop%.,rxnotj AGREI: EMEN r" (..It fRRENTLY Ill�,l PLACE, AND RENEWED ANNUALI Y, BE I-WEEN f lUCJkNDl 11"L E. HL )C SHAI 11 PROVIDE'To HTI, FOR EACH NA I URAL GAS PI JRCI-IASE, A TRANSAcnON CONFIRMATION" AS PROOF, THA 1- THE PURCI-IASE WAS COMPLETED. I HE . . .... I-RANSAC I ION CONFIRMKrION" SHALL PROVIDE DETAILS OF Tf IE NArLIRAL GAS PURCI IASE SUICI I A-S,) DELIVERY PERIOD STAR I DATE, DELIVERY 1:::IERIOD El\ID DATE, "TOTAL Q.�.JANTITY By DEI IVERY PuNrr, DELIVERY PC)gTq'l* AND CON rRAC I PRICE., F.. AND I ITI AGREE TI IAr' ALL.... NATURAL GAS PURCII.Af-.-.:pED FOR 9--U11 SHALL REMAIN THE PROI::::IER'ry OF I 1L.JC UN I IL SOLD TO f I Ff ON A DAII YBASIS. ON(,:�ETHE NXI'LIRAL GAS VOLUMES HAVE BEEN METERED, BY THE HLJC METERING FACILITIES, T1 lEY BE(,:OME THE PROPERTY' OF" I I n. ALL DAILY VOt UMES FOR EACI I IAONI I I WILD.... BE INVOICED To I 1 11, OR ITS AGENT, IFBY TI IF FIFTEEN FH DlkY OF' THE MONTH FOLI....,OWING THE MC.: N I H IN Wf-flCll �:�.-'�ERVICE IS RENDERED BY I ILIC. G. ALL VOLLIMES PLACED INTO n iE Cf::::'Pl::::) By H I M IS I" BE CONSUMED I13Y 1 111 ON A DAILY BASIS. DAILY IMBALANCES OF I'l IE CPI::::-lp VOLUMES ARE N01" PERmg'rrED. H. I I I I SHAI L HAVE n JE ABILITY"F0 CEA E PARTICIPATION IN,I'IiE CPPP UPON EACH RENEWAL OF ]"His AGREEMENT, IN rHE EVENT 1-1 11 CHOOSES Pqar ..B" PAR rilclPKrE IN 1*1 IF CPU:: P, Furl IRE PAR rici P-Anopq IS NOT PERIMI I 1"ED., PAGE 7 OF" '15 IN THE EVENT THAT HTI NO LONGER HAS THE ABILITY TO CONSUME THE MONTHLY LEVELS OF NATURAL GAS PLACED INTO THE CPPP, HTI SHALL NOTIFY HUC IN WRITING THAT HTI CHOOSES TO CEASE PARTICIPATION IN THE CPPP. HUC SHALL WORK WITH THE CPPP PROVIDER TO REMOVE THE DESIGNATED HTI VOLUMES FROM THE CPPP. ONCE HTI HAS CEASED PARTICIPATION IN THE CPPP FUTURE PARTICIPATION IS NOT ALLOWED. J. HUC SHALL NOT CONSUME, REDIRECT, SELL OR OTHERWISE DISPOSE OF ANY QUANTITIES OF NATURAL GAS PURCHASED FOR HTI UNLESS DIRECTED BY HTI TO DO SO, IN WRITING. K. IN THE EVENT THAT HTI NO LONGER HAS THE ABILITY TO TAKE THE CONTRACTED NATURAL GAS COMMODITY PURCHASED UNDER THIS AGREEMENT, DUE TO PLANT TEMPORARY SHUTDOWN, PERMANENT CLOSURE, ETC., HTI SHALL TURN BACK TO HUC AN AMOUNT EQUAL TO THE REMAINING CONTRACTED QUANTITY, FOR A FINANCIAL ADJUSTMENT TO BE MADE BASED ON A FORMULA EQUAL TO THE QUANTITY OF GAS TO BE TURNED BACK BY HTI, MULTIPLIED BY THE DIFFERENCE BETWEEN THE APPLICABLE CONTRACT PRICE AND THE GDD PRICE FOR THE DAY PLUS/MINUS THE NNG VENTURA TO NBPL VENTURA DAILY PREMIUM . THE GDD PRICE MEANS THE GAS DAILY NNG VENTURA INDEX FOR THE DAY OF DELIVERY FOR THE DELIVERIES TO VENTURA. L. 1N THE EVENT MONTHLY QUANTITIES ARE TO BE TURNED BACK TO HUC, THE SETTLEMENT FORMULA SHALL BE EQUAL TO THE QUANTITY OF GAS TO BE TURNED BACK MULTIPLIED BY THE DIFFERENCE BETWEEN THE APPLICABLE CONTRACT PRICE AND THE INSIDE FERC FIRST OF THE MONTH NNG VENTURA INDEX PLUS/MINUS THE NNG VENTURA TO NBPL VENTURA MONTHLY PREMIUM FOR THE MONTH IN CONSIDERATION. 10. DAILY SWING SUPPLY HUC AGREES TO PROVIDE DAILY SWING SUPPLY TO HTI 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 $0.01 . SWING SUPPLY IS DEFINED AS SUPPLY INCREASES OR DECREASES, FROM CONTRACTED LEVELS, NOMINATED AT LEAST 24 HOURS PRIOR TO THE START OF THE GAS DAY. 1 1. REAL TIME BALANCING HUC SHALL PROVIDE HTI WITH REAL-TIME BALANCING, BASED ON THE FOLLOWING: PAGES OF 15 BE.sr EFFOR T's REAL-TIME SWIN.G NOMINATED LESS'rHAN 24 1 IOURS PRIOR'roTHE END OF THE GAS DAY ON A BEs"r EFFOR rS BASIS, PRICED Al rl IE APPLICABI-E PRICE, AS PUBLISI IED FOR 'THE DAY BYPLATT'S "GAs DAII.-Y" IN ITS "DAILY PRICE SURVEY ($/D I HY' FOR "NOR-rHERN, VO4TURA" WiDPOINT" ("DAILY INDEX"), PLUS/lAINUS $0,15. '12.., AraEurs A. DESiGNA riuj OF AGENTS HTI MAY DESIGNA I E Af'�l AGEN 11 FOR N01AINA I"ING VOLUMES FOR 'T`RANSPOR"T"A'. riON ON I HJC'S SYSTEM. I I I I SHAI I . NoriFy HADC;: IN WRITING AT LEAS F F:-IF-I-EEN 0 5) BUSINESS DAYS PRK ' . )RTO rHE FNRs"r DA yr OF "T"I IE mor,4 n I IN VVI fICH SUCH SERVCESWII I BE UTIUIZED 11 fAl' A, n iIRD PAR"ry, I IAS BEEN DESIGNAl"ED AS I I TTS AGETa AND SHALL AC1` AS AGEN I" FOR Ff T-I FOR PURPOSES OF NOMINAl IONS, BII..-1 ING, AND/OR o rl IER FUNCTIONS AS SPECIFIED BY HTI. IF I I I I u rif IZES AN AGEN f FOR ANY ,OR At L OF I HESE PUf"ZPOSES, I I rl AGREESTI fAT INFORMATIONTO BE SUPPI IED BY HUC ro H n MAY BE SI..IPPI JED ONLYTO 'T+iE AGEI,4,r AND T1 IA"r INFORMA ."I ION SUPPLIED BY rl IE AGEN I TO DIUC SHALL BE RELIED UPON BY f R JC AS IF PROVIDED BY DF Fl.. I IUC SHALI-. BE I lEl D HARMI ESS 1:::;"OR ANY ERRORS NINE WEEN I-M AND SAID AGENT. SUCH DES�GNA110N SI IALL REMAIN IN EFFECl' 4.UN,4"nL 1.-iTl N01 NIFIEs HLIC IN WRITING FHA I rHE PREVIOUSLY DESIGNKrED AGENT IS NO ONIGER I I"S AGENT. B. INFORMA I igRr-:(,.kqy E, 1__p i i n SUN IAI L PROVIDETIE FOLLOWNG INFORNIA'1710N rc.) HI JC CONCEI::RNNW.3 EACH AGEN'T LJSED BY I I T-I FOR Apjx PURPOSE" NAME AND ADDRESS OF n IE AGENTOR AGEN I S"' 2. PRIMARY AND SECONDARYCON" TA(..",17 PERSONS 1:::;"OR THE .GEN 'r ORAGENTS," 3 1 EL EPHONIEAND FACSIMIII-E NUMBER FOR PRIMARY AND SECONDARY CONTACT PERSOi',JS FOR THE AG014 I OR AGEN rs-, AND PAGE 9 OF 15 4. TWENTY-FOUR HOUR TELEPHONE NUMBER FOR WEEKENDS AND HOLIDAYS FOR THE AGENT OR AGENTS. C. HTI To REMAIN LIABLE HTI MAY ELECT TO HAVE ITS BILL FOR SERVICES UNDER THIS AGREEMENT SENT DIRECTLY TO ITS AGENT. HOWEVER, IF HTI SELECTS THIS OPTION, HTI REMAINS FULLY LIABLE FOR ANY BILL RENDERED BY HUC. ALL DEADLINES SET FORTH IN THIS AGREEMENT SHALL CONTINUE TO APPLY, REGARDLESS OF WHETHER HUC'S BILL 1S SENT DIRECTLY TO HTI OR TO HTI'S DESIGNATED AGENT. 13. FORCE MAJEURE. A. DEFINITION EITHER PARTY SHALL BE EXCUSED FROM PERFORMANCE UNDER THIS AGREEMENT BY FORCE MAJEURE ACTS AND EVENTS. "FORCE MAJEURE" SHALL MEAN ACTS AND EVENTS NOT WITHIN THE CONTROL OF THE PARTY CLAIMING FORCE MAJEURE, AND SHALL INCLUDE, BUT NOT BE LIMITED TO, ACTS OF GOD, STRIKES, LOCKOUTS, MATERIAL, EQUIPMENT, OR LABOR SHORTAGES, WARS, RIOTS, INSURRECTIONS, EPIDEMICS, LANDSLIDES, EARTHQUAKES, FLOODS, FIRES, STORMS, GOVERNMENT OR COURT ORDERS, CIVIL DISTURBANCES, EXPLOSIONS, BREAKAGE OR ACCIDENT TO MACHINERY OR PIPELINES, FREEZING OF WELLS OR PIPELINES, OR ANY OTHER CAUSE OF WHATEVER KIND, WHETHER SPECIFICALLY ENUMERATED HEREIN OR NOT, THAT IS NOT WITHIN THE CONTROL OF THE PARTY CLAIMING FORCE MAJEURE. B. EFFECT 1. IF HUC IS UNABLE TO PROVIDE SERVICE UNDER THIS AGREEMENT DUE TO A FORCE MAJEURE ACT OR EVENT, HUC'S OBLIGATION TO PROVIDE SERVICE UNDER THIS AGREEMENT SHALL BE SUSPENDED FOR THE DURATION OF THE ACT OR EVENT. HUC SHALL NOTIFY HTI OF THE FORCE MAJEURE EVENT AS SOON AS REASONABLY POSSIBLE BY ANY MEANS PRACTICABLE, INCLUDING, BUT NOT LIMITED TO, TELEPHONE OR FACSIMILE, AND SHALL CONFIRM THE PAGE 10 OF 15 DE rAILS OF rIlE FoRCE MAJEUIRE AC1* OR EVEN I IN WRITING VOTI IIN A REAS("')NABL-E AM0UI`,4T OF TIME'rf IEREAFTER. I ILIC SHALL WORICTO REMEDYTHE FORCE MAJEUREAC"'I" OR EVENT AS SOON AS REASONABLY POSSIBLE AND SI KEEP HT1 APPRISED OF Ff IE 1 IME, DIV'FE, AND CIRCUMS I-ANCES WHEN SERVK. E IJNDER -ri. iis AGREEMEN'r SHAI L BE RESTORED. [--i n IS Nur REQUIREDTo PAY' ANY CHARGES UNDER This AGREEMENT DURINGTH➢ .:....: "TERM OF'T'HE FORCE MA.J0 JRE Acr oI:? EVENT. 2. IF H"I'l IS UNABLE "'roTAKE SERV90::UNDER ri us AGREEMENI DUE 1 0 A FofRCE MA,JEURE JkCT OR EVENT', HLJC'S OBLIGAT10N TO 1::::IROVIDE SERVICE UNDER I Ills AGREEMENT SHAI L BE SUSPENDED 1::::'C)R 1 HE DL.JRA:I'ION OF rIAE AC...U..'(:::DUB EVEN 1". 1 ri SHAI I . Naru:ry HUB C OF THE Foi:?cI::: MAJEURE EVEN"T AS SO(,:'.)N AS REASONABI-Y POSSIBLE BY ANY MEANS PRACTK..]�ABLE, INCLUDING, BUT NOT L1MIT11::'-'D ro, "m EPHONE 01Z FACSIMII-E, )'ND SI IALL CONFIRM ri IE DETAILS OF"..C.1HE FORCE MAJEURE ACT OR EVEN T" IN WRITING WITHIN A REAS('. )NABI E AMOUN"T of:::r TwE THEREAFrER. rn SHALI WORKTO REMEDY Ti 1E FORCE MAJE1, )RE AC I OR EVENT AS SOON AS REASONABLY POSSIBLE AND SHALI KEEP I R IC A[-:::IPRISED OF THE TIME, DKrE, AND CIRCk.smsrANCES WI IEN i i ri vvi I I RESUME SERVICE UNDER mis AGREEMENT. HUC IS NOTREQUIRED "TO PROVIDE SERVICE UNDER TI-As AGREEMENT DURING THE TERM OF rHE FORCE MAJEURE ACT OR EVENT. 14. LAWS, REGULATIO N.5.,, AND ORDERS. . . . . . . . ....................... -- . .......... - SERVICE UNDER "THis A(, 3REEMEN''I" IS SUB.JEC1 FOAI L PRESEmr AND FU FUREVALID LAWS, ORDERS, RULES,, REGULATIONS, ETC., ISS( )ED BY ANY FEDERAL, STNI-E, OR I OCAL AU I I 10RITY HAVIIG JURiSDIC I ION OVER THE MATTERS SE I FORT] I I IEREIN. 15. II ISCII: LLANEOUS PROVISIONS. A. 11 )ECI ARA1 ION OF fr4VALIDITY IF ANY Pl:: OVISION OF TI IIS AGREEMENT IS DETERMINED To BE INVAI ID, VOID, OR 11 1rIEfqF0R(,.EABUE BY ANY COURT OR PAGE I 'I OF" I E-5i OTHER ENTITY HAVING JURISDICTION, SUCH DETERMINATION SHALL NOT INVALIDATE, VOID, OR MAKE UNENFORCEABLE ANY OTHER PROVISION, AGREEMENT OR COVENANT OF THIS AGREEMENT; AND THE PARTIES AGREE TO NEGOTIATE IN GOOD FAITH A REPLACEMENT TO SUCH INVALID, VOID OR UNENFORCEABLE PROVISION AND/OR ANY OTHER AMENDMENTS AS MAY BE NECESSARY TO ENSURE THAT THE AGREEMENT AS A WHOLE REFLECTS THE ORIGINAL INTENTIONS OF THE PARTIES. B. NO CONTINUING WAIVER NO WAIVER OF ANY BREACH OF THIS AGREEMENT SHALL BE HELD TO BE A WAIVER OF ANY OTHER OR SUBSEQUENT BREACH. C. LIMITATION ON AGREEMENT THE PARTIES EXPRESSLY ACKNOWLEDGE AND AGREE THAT IT IS NEITHER THE PURPOSE OF THIS AGREEMENT NOR THEIR INTENT TO CREATE A PARTNERSHIP, JOINT VENTURE CONTRACT OR COMPANY, ASSOCIATION OR TRUST, FIDUCIARY RELATIONSHIP OR PARTNERSHIP BETWEEN THEM. EXCEPT AS EXPRESSLY PROVIDED HEREIN, NEITHER PARTY SHALL HAVE ANY AUTHORITY TO ACT FOR OR ASSUME ANY OBLIGATIONS, OR RESPONSIBILITIES ON BEHALF OF, THE OTHER PARTY, D. COMPLETE ,m_AGREEMENT THIS AGREEMENT SETS FORTH ALL UNDERSTANDINGS BETWEEN THE PARTIES AS OF THE EFFECTIVE DATE HEREIN. ANY PRIOR CONTRACTS, UNDERSTANDINGS AND REPRESENTATIONS, WHETHER ORAL OR WRITTEN, RELATING TO THE MATTERS ADDRESSED IN THIS AGREEMENT ARE MERGED INTO AND SUPERSEDED BY THIS AGREEMENT. THIS AGREEMENT MAY BE AMENDED ONLY BY A WRITING EXECUTED BY BOTH PARTIES. E. GOVERNING LAW THE INTERPRETATION AND PERFORMANCE OF THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF MINNESOTA, EXCLUDING, HOWEVER, ANY CONFLICT OF LAW THAT WOULD APPLY THE LAW OF ANOTHER JURISDICTION. PAGE 12 OF 15 F., C. 'ONFIDEN ow rrY REQ11-flRED NO ri IER PARTY SHAI 1 DISCLOSE DIRECTLY OR INDIREC I LY W1 T'HOU'rTI IIE PRIOR WRITTEN CONSET14 r OF THE 01 HER PAR I Y Tf II E "T"ERMS OI::-I HIS AGREEMOk4'r 10 A THIRD PARTY, EXCLUDING I i rrS AGENT, EXCEPT' (1) INI ORDER "'ro COMPLY wi I-11 AHD YAPPLICABLE LAW, LEGAL PROCESS, ORDER, REGuLATION, OR IF" XCI IANGE RI ILI:::;:; (11) To rIfE EXTENT NECESSARY FOR THE ENFORCEMENT OF 1-1 IIS AGREEMENT', AND (III) ro I HIE EXTENTr,1Ec-,ESSARY'ro IMPLEMENT AND PERFORM 'T'His AGREEIAE,rr. EACH PART`Y St IALL NOTII::::Y I"HE OTI IER PARTY OFANY DEMAND OR PROCEEDING OF WHICH IT IS AW)kRE WHICH MAY RESULT IN DISCLOSI �RE 01::" THE I ERMS OF I -I IIS AGREEMENT (0TfiER THAN AS PERMITTED HEREUNDER) Af1,1D USE REASOI'ABJ E EFFORTs -ro PREVEI�JTOR LIMIT Tf IE DISCLOSURE E. ..... I I IF PARTIES SI 1A1.-,1- BE ENTITI ED TO All I REMEDIES AVAILABLE A LAW OR IN EQUITY To ENFORCE ( )R SEEK REI JEF IN CONNEcTION WITH THIS CONFIDENTUkLITY OBI JGA"T"ION . .... rHE rERMS OF Tms AGREEMENT S1 IALI BE KEP I CONFIDEWIAL BY TI iE RATz"IrIES J-iERE,r0 F01-:?"rwo YEARS f::`R0M,'TfiE EXPJ[Rgrlol�l ORTERMINA 110N ri uS AGREEMENT. R�J THE 1:7'VEN"r 11 Wl' DISCLOSURE IS REQUIRED BY A GOVERI`�,IMENTAL BODY OR APPLICABLE LAw, 'n HE PARTY SLJBJEC; T' TO SLICH REQUIREMENT MAY DISCLOSE THE MATERIAL I ERMS OFTf IIS AGREEMIEY,4'r To n OE E)(rEN-r so REQ1JIRED, ll:..:, LIT SI IALL PROMF ITLY NOTIF' "'T"I I E OTI IER PAR 1"Y, PRIOR TO DISCI OSURE, AND SI--IALL COOT�:IERATE (CONSIS 9"Et,cr WITI I rI--fE DISCLOSING PARTY'S LEGAL OBLIGA,rfor,is) Wil H THE 0"DiER PARTY'S EFFOR I S -1 0 OBTAIN PRon:::� ' 'crl]VE ORDERS OR SIMILAR RESTRAINT'S wrm 1--?ESPECT TO SUCI-1 DISCLOSURE AT T11E EXPENSE OF THE OTHER PAR"ry. G. A.u'rHORi ry"'ro ENTER AGREEMENT EACI I PAR ry ro mis AGREEMENT REPRESENTS AND WARRANTS I I IAT IT I 1AS FULL, AND COMPLETE AUTHORITY r0 ENTER INTO AND PERFORM"n iIS AGREEMENT'. EACH PE1::ZS0NVVI10 ll::.-"'XII:�-,ciLj,rES'i'tiisA.GREEMEP4'T'ON BEHALFOF EITI U.:,R PARTY REPRESENTS AND WARRANTSTI HEAT I IA•IAS FULL AND COMPLETE AUTHORITY To )0 SO AND 1 HAT SLICI I PARI Y WILL BE BOUND,rl IEREBY. PAGE 13 OF 15 H. THIRD -PARTY BENEFICIARIES HTl/TDK SHALL NOT TRANSFER ITS RIGHTS OR OBLIGATIONS UNDER THIS AGREEMENT TO ANY THIRD PARTY WITHOUT THE PRIOR WRITTEN CONSENT OF HUC. PAGE 14 OF 15 THIS AGREEMENT SETS FORTH ALL TERMS AGREED UPON BETWEEN THE PARTIES, AND NO PRIOR ORAL OR WRITTEN AGREEMENTS SHALL BE BINDING. THIS AGREEMENT SHALL NOT BE ALTERED, AMENDED OR MODIFIED EXCEPT AS IN WRITING AND EXECUTED BY BOTH PARTIES. HUTCHINSON UTILITIES COMMISSION m NAME: TITLE: COMMISSION PRESIDENT DATE: TITLE: WITNESS: DATE: HUTCHINSON TECHNOLOGIES, INC. NAME: NkkkkE MA-V'k- TITLE: V IZC- DATE: J WITNESS: DATE:" PAGE 15 OF 15 HUTCHINSON UTILITIES COMMISSION��` Board Action Form �r�turscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: REQ #009124 - 3M Substation Relay and RTU Upgrades Presenter: D. Lang Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments,: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The existing electro-mechanical relaying equipment is to be replaced at the 3M Substation in 2022. An engineering firm will be used to design the protection system scheme for the substation and feeders, specify materials, develop relay settings, and commission the relays. They will also design and specify the materials to replace the obsolete Ilex RTU and integrate with the new relaying equipment. HUC will procure and install the equipment. Attachments: -Task Order No. 6 Agreement BOARD ACTION REQUESTED: Approval of requisition #009124 to DGR Engineering Fiscal Impact: $72,000 (est) Included in current budget: Yes Budget Change: Yes PROJECT SECTION: Total Project Cost: Remaining Cost: TASK ORDER Task Order No. 6 Effective Date: Task Order Amendment to the DGR ENGINEERING Master Agreement for Professional Services DGR Engineering (Consultant) agrees to provide to: Hutchinson Utilities Commission — Hutchinson, Minnesota (Client), the professional services described below for the Project identified below. The professional services shall be performed in accordance with and shall be subject to the terms and conditions of the Master Agreement for Professional Services executed by and between Consultant and Client on the day of , 20_ TASK ORDER PROJECT NAME: 3M Substation Relay and RTU Upgrades TASK ORDER PROJECT DESCRIPTION: Hutchinson Utilities Commission (HUC) is replacing the existing electromechanical protective relaying on feeders 31, 32, 33, and bus tie with modern SEL protective relaying at the 3M substation. In addition, the existing remote terminal unit (RTU) will be replaced with a new SEL RTAC. DGR CONTACT PERSON: CLIENT CONTACT PERSON: SCOPE OF WORK: Alex Richter, Project Manager — Electric Power Chad Rasmussen, Asst Dept Head — Electric Power Daniel Lang, Engineering Services Manager Design Phase: a. Develop a communication diagram. b. Update/create switchgear panel layouts for relaying and control equipment. c. Update/create RTU panel layout for the RTU equipment. d. Update existing drawing set per relay upgrade changes. Drawings include: i. One -line diagrams ii. Control schematics iii. Three -line diagrams iv. Wiring diagrams e. Issue IFF drawing set for ordering materials and steel plate fabrication. f. Issue IFC drawing set for field construction. Including: i. Remove/Add wiring diagrams for the switchgear and RTU cabinet. ii. Wiring diagrams for remote equipment such as AC & DC panels as needed. iii. Wiring diagrams showing customer connections to the yard equipment as needed. iv. Control cable schedule (if needed). g. Replicate the existing SCADA points lists and add any additional points desired. h. Issue the SCADA points list for Client review. C':ATJs,f,a4,Aarad:lc(,,,AAppl)at:a\G (.)cal\Micros,oti.AWindol o,s,UNf;tC'achPAC'ontPrnt:.( Litlook\IJZC'3(i7OG.AVa4,k Order 1" o. 6-3M Substation Relay and RT ((i9/ 4) C':ATJs,f,a4,Aarad:lc(,,,AAppl)at:a\G (.)cal\Micros,oti.AWindol o,UNf,tC'achPAC'ontPrnt:.OLitlook\IJZC'3(i7OG.AVa4,k Order 1" o. C - 3M Substation Relay and RT ((J9/ 4) 2. Construction phase: a. Assist in construction administration and scheduling. b. Provide remote and in -person support during construction and wiring. c. Develop the relay settings (relay testing by others). d. Issue the final SCADA points list. e. Participate in function testing of the relays and controls. f. Develop and install the RTAC and controller settings. g. Commission the points lists and controls with the Client master. h. Commission and checkout the protective relays during energization. Post -Construction phase: a. Develop a punch list. b. Produce record SCADA points lists. c. Produce record drawings. d. Install final RTAC setting changes needed based on the final punch -list. Assumptions: • No bidding or contract documents are required for the project. The project does not include any modifications to the protective relays or devices on the 3M feeders, main breaker or xfmr panel. It is understood that the Client will perform the following tasks: o Determine and coordinate the communication path(s) needed outside the substation control building. o Procure, install, and wire all the new equipment necessary for the project. FEE ARRANGEMENT: We propose the following fee arrangement for the identified work: Component Design Phase Construction Phase Post -Construction Phase Fee Type Fee Lump Sum 46,000 Hourly + Expenses (estimate) 20,000 Hourly + Expenses (estimate) 6,000 Total Fee $ 72,000 The lump sum fee includes all expenses including mileage, subsistence, and deliverables costs through final design. The fee will be billed on a monthly basis in proportion to the percentage of work complete at the time. All "Hourly" work will be billed at the then -current Hourly Fee Schedule then in effect at the time the work is performed. A copy of the current 2022 Hourly Fee Schedule A is attached as Appendix L In addition, expenses associated with subsistence, travel and vehicle mileage at IRS rates will be charged while personnel are on -site. All other costs for our services, including deliverables, office supplies, telephone and computer use, are included in our hourly rates and will not be billed separately. Additional work beyond the Scope of Work described herein will be billed at our standard hourly rates in effect at the time the work is done. C':ATJs,f,a4,Aarad:lc(,,,AAppl)at:a\G (.)cal\Micros,oti.AWindol o,UNf;tC'achPAC'ontPrnt:.OLitlook\IJZC'3(i7OG.AVa4,k Order 1" o. C - 3M Substation Relay and RT ((i9/ 4) SPECIAL TERMS AND CONDITIONS: None Hutchinson Utilities Commission Hutchinson, Minnesota (Client) Title: (Authorized signature and Title) Address: 225 Michigan St SE City: Hutchinson, MN 55350 Date: April 27, 2022 Title: (Authorized signature and Title) Address: 225 Michigan St SE City: Hutchinson, MN 55350 Date: April 27, 2022 DeWild Grant Reckert and Associates Company d/b/a DGR Engineering (Consultant) WE Title: (Authorized signature and Title) Address: 1302 South Union Street City: Rock Rapids, IA 51246 Date: C':ATJs,f,a4,Aarad:lc(,,,AAppl)at:a\G (.)cal\Micros,oti.AWindol o,UNf;tC'achPAC'ontPrnt:.OLitlook\IJZC'3(i7OG.AVa4,k Order 1" o. C - 3M Substation Relay and RT ((i9/ 4) DGR ENGINEERING JAN UARY 2022 HOURLY FEE SCHEDULE A Personnel Grade Engineer Hourly Rate Technician Hourly Rate Administrative Hourly Rate' 01 $100 $59 $54 02 $106 $64 $56 03 $112 $69 $60 04 $118 $73 $65 05 $127 $78 $70 06 $140 $84 $75 07 $152 $88 $80 08 $162 $94 $85 09 $175 $100 $90 10 $187 $106 $96 11 $200 $112 $103 12 $212 $117 $118 13 $226 $123 $135 14 $232 $132 $166 15 $238 $142 $219 Reimbursable Expenses: Standard vehicle mileage at the IRS standard mileage rate in effect at the time. 2. Survey/staking/heavy duty trucks at $0.80 per mile. 3. Other travel, subsistence, lodging at actual out-of-pocket cost. 4. GPS Survey Equipment (when used) at $31.25 per hour. 5. ATV and UTV Equipment (when applicable) at $12.50 per hour. C':AUs,f,a4,Aarad:lc(,,,AAppl)at:a\G (.)cal\Microsoti.AWindol o,UNf;tC'achPAC'ontPrnt:.OLitlook\IJZC'3(i7OG.AVask Order 1" o. C - 3M Substation Relay and R I ((i9/ 4) HUTCHINSON UTILITIES COMMISSION��` Board Action Form �r�turscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: 2021 Annual Reliability Benchmarking Report Presenter: Dave Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments,: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The American Public Power Association 2021 Annual Reliability Benchmarking Report. This report provides Hutchinson Utilities with high -quality reliability benchmarking information. This year's report includes our data in comparison to the 270 utilities that provided and verified their data for 2021. This report focuses on distribution system reliability across the country and is customized to each utility that participates in the American Public Power Association's eReliability Tracker service. APPA created the eReliability Tracker Annual Report to assist utilities in their efforts to understand and analyze their electric system. BOARD ACTION REQUESTED: None Fiscal impact: None Included in current budget:Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: Hutchinson Utilities Commission DESO PUBLIC POWER American PuKic Power Assoc4aticmi 1. About this Report This report focuses on distribution system reliability across the country and is customized to each utility that participates in the American Public Power Association's eReliability Tracker service. APPA created the eReliability Tracker Annual Report to assist utilities in their efforts to understand and analyze their electric system. In 2012, APPA developed the eReliability Tracker thanks to a grant from the Demonstration of Energy & Efficiency Developments (DEED) program. This report reflects data in the eReliability Tracker from January 1, 2021 to December 31, 2021. If you do not have a full year of data in the system, then this analysis might not properly reflect your utility's statistics. The report only includes data recorded as of February 19, 2022. Reliability reflects both historic and ongoing engineering investment decisions within a utility. Proper use of reliability metrics ensures that a utility is performing its intended function and is providing service in a consistent and effective manner. While the primary use of reliability statistics is for self -evaluation, you can use these statistics to compare your utility with similar utilities. However, differences such as electrical network configuration, ambient environment, weather conditions, and number of customers served typically limit most utility -to -utility comparisons. Due to the diverse range of utilities that use the eReliability Tracker, this report endeavors to improve comparative analyses by grouping utilities by size and region. Since this report contains data for all utilities that use the eReliability Tracker, it is important to consider how a particularly large or small utility can affect the rest of the data. To ease the issues associated with comparability, each utility's reliability statistics are weighted based on customer count when aggregated. This means that all utilities are equally weighted, and all individual statistics are developed on a per customer basis. The aggregate statistics displayed in this report are calculated from 270 utilities that verified their 2021 outage data. Utilities that experienced no outages in 2021, or did not upload any data, will have NULL, nan, or "0" values in their report for utility - specific data and were not included in the aggregate analysis. Also note that log- normal data with a z-score greater than 3.25 will be considered for inclusion and may be excluded if it significantly distorts the aggregate statistics. 2 Utility Classifications This report separates utilities into groups according to geographic region and the number of customers served. Table 1 shows the range of customer sizes for utilities that use the eReliability Tracker by five distinct customer size class groups of approximately 104 utilities per group. Your utility belongs to customer size class 4 and region Table 1. Customer size range per customer size class Customer Size Class [Customer Size Range Class 1 [0, 1511) Class 2 [1511, 3224) Class 3 [3224, 7135) Class 4 [7135, 14329) Class 5 [14329, 499542) Each utility is also grouped with all other participating utilities within their region. Figure 1 shows the number of utilities using the eReliability Tracker in each region and Figure 2 shows the states and territories included in each region. 120 100 0 80 0 Q" 60 v E :; 40 z 20 0 1 2 3 4 5 6 7 a 4 APPA Regions Figure 1. Number of utilities subscribed to the eReliability Tracker by region 3 r � x1W, AMERICAN GUAM NORTHERN PUERTO U.S. VIRGIN SAMOA MARIANA RICO ISLANDS ISLANDS Figure 2. Regions 11. IEEE Statistics When it comes to reliability metrics, the industry standard metrics are defined in the Institute for Electrical and Electronics Engineers' Guide for Electric Power Distribution Reliability Indices, or IEEE 1366 guidelines. For each utility, the eReliability Tracker performs IEEE 1366 calculations for System Average Interruption Duration Index (SAIDI), System Average Interruption Frequency Index (SAIFI), Customer Average Interruption Duration Index (CAIDI), Momentary Average Interruption Frequency Index (MAIFI) and Average Service Availability Index (ASAI). It is important to note how major events (MEs) are calculated and used in this report. An example of a ME includes severe weather, such as a tornado or hurricane, that leads to unusually long outages in comparison to your distribution system's typical outage. This report uses APPA's ME threshold, which is a calculation based directly on the SAIDI for specific outage events, rather than daily SAIDI. APPA's ME threshold allows a utility to remove outages that exceed the IEEE 2.5 beta threshold for outage events, which considers up to 10 years of the utility's outage history. In the eReliability Tracker, if a utility does not have at least 36 outage events prior to the year being analyzed, then no threshold is calculated. If this is the case for your utility, then you will have a NULL value in the field below and the calculations without MEs in the SAIDI, SAIFI, CAIDI, and ASAI sections of this report will be the same as the calculations with MEs for your utility. More outage history will provide a better threshold for your utility. Your utility's APPA major event threshold is 67.96 minutes. For each of the reliability indices, this report displays your utility's metrics alongside other comparative groups. The first table within each of the following subsections allows you to better understand the performance of your electric system relative to other utilities nationwide and to those within your same region or size class. The second table breaks down the national data into quartile ranges, a minimum value, and a maximum value. All indices, except MAIFI, are calculated for outages with and without MEs; furthermore, the data are broken down to show calculations for scheduled and unscheduled outages. Note that scheduled and unscheduled calculations include MEs. Also note that wherever MEs are excluded, the exclusion is based on the APPA's ME threshold for your system. 5 11.1. System Average Interruption Duration Index (SAIDI) SAIDI is defined as the average interruption duration (in minutes) for customers served by the utility during a specific time frame. Since SAIDI is a sustained interruption index, only outages lasting longer than five minutes are included in the calculations. SAIDI is calculated by dividing the sum of all customer minutes of interruption"' within the specified time frame by the average number of customers served during that period. For example, a utility with 100 customer minutes of interruption and 100 customers would have a SAIDI of 1. Note that in the tables below, scheduled and unscheduled calculations include MEs. Also note that wherever MEs are excluded, the exclusion is based on the APPA's ME threshold for your system. Table 2. Average SAIDI with and without MEs in minutes All No MEs Unscheduled Scheduled Your utility 191 191 191 N UI....II.... Utilities that use the eReliability Tracker 111.1 44.19 97.22 23.38 Utilities in your region 67.87 30.01 66.46 2.08 Utilities in your customer size class 77.82 33.14 76.09 2.81 Table 3. Summary SAIDI data from the eReliability Tracker All No MEs Unscheduled Scheduled Minimum Value 0 0 0 0 First Quartile 16.95 10.15 15.06 0.25 Median Value 46.29 22.89 44.29 1.4 Third Quartile 108.87 49.55 98.49 4.42 Maximum Value 1793.88 926.72 1548.4 0 1606.86 300 Q 250 C E 200 0 < 150 Ul Q 13 100 12 d1 50 0 APPA Regions Figure 3. Average SAIDI for all utilities that use the eReliability Tracker by region 1. Customer minutes of interruption is calculated by multiplying total customers interrupted and total minutes of interruption. 0 11.2. System Average Interruption Frequency Index (SAIFI) SAIFI is defined as the average number of instances a customer on the utility system will experience an interruption during a specific period. Since SAIFI is a sustained interruption index, only outages lasting longer than five minutes are included in the calculations. SAIFI is calculated by dividing the total number of customer interruptions by the average number of customers served during that period. For example, a utility with 150 customer interruptions and 200 customers would have a SAIFI of 0.75 interruptions per customer. Note that in the tables below, scheduled and unscheduled calculations include MEs. Also note that wherever MEs are excluded, the exclusion is based on the APPA's ME threshold for your system. Table 4. Average SAIFI with and without MEs in interruptions All No MEs Unscheduled Scheduled y Your utility �,o1 6,01 0,0 Table 5. Summary SAIFI data from the eReliability Tracker 1 II�IJII....11.... Utilities that use the eReliability Tracker 0.84 0.53 0.78 0.1 Utilities in your region 0.6 0.4 0.57 0.04 Utilities in our customer size class 0.73 0.41 0.7 0.04 All No MEs Unscheduled Scheduled Minimum Value 0 0 0 0 First Quartile 0.23 0.13 0.21 0 Median Value 0.53 0.31 0.52 0.01 Third Quartile 1.15 0.71 1.12 0.05 Maximum Value 5.14 4.17 4.47 4.02 1.6 Ln o 1. 0 Q 1.2 y 1.0 LL 0.s u°i 0.6 Q L 0.4 a ©.2 0.0 APPA Regions Figure 4. Average SAIFI for all utilities that use the eReliability Tracker by region 7 11.3. Customer Average Interruption Duration Index (CAIDI) CAIDI is defined as the average duration (in minutes) of an interruption experienced by customers during a specific time frame. Since CAIDI is a sustained interruption index, only outages lasting longer than five minutes are included in the calculations. CAIDI is calculated by dividing the sum of all customer minutes of interruption by the number of customers that experienced one or more interruptions during that period. This metric reflects the average customer experience (minutes of duration) during an outage. Note that in the tables below, scheduled and unscheduled calculations include MEs. Also note that wherever MEs are excluded, the exclusion is based on the APPA's ME threshold for your system. Table 6. Average CAIDI with and without MEs in minutes All No MEs Unscheduled Scheduled y Your utility ��4 Table 7. Summary CAIDI data from the eReliability Tracker ,31 �� 4,31 �� 4,31 II�IJIIll ........ Utilities that use the eReliability Tracker 115.19 84 113.06 128.91 Utilities in your region 93.52 69.73 95.34 80.82 Utilities in our customer size class 107.16 87.17 108.15 118.02 All No MEs Unscheduled Scheduled Minimum Value 0 0 0 0 First Quartile 61 55.72 60.62 51.99 Median Value 86.26 71.59 86.42 84.9 Third Quartile 117.39 95.14 116.52 141.87 Maximum Value 1322.8 438.68 1350.23 1377.2 250 2zoo a) 150 0 < 100 U Q 50 a d 0 APPA Regions Figure 5. Average CAIDI for all utilities that use the eReliability Tracker by region 11.4. Momentary Average Interruption Frequency Index (MAIFI) MAIFI is defined as the average number of times a customer on the utility system will experience a momentary interruption. In this report, an outage with a duration of five minutes or less is classified as momentary. MAIFI is calculated by dividing the total number of momentary customer interruptions by the total number of customers served by the utility. For example, a utility with 20 momentary customer interruptions and 100 customers would have a MAIFI of 0.20. Momentary outages can be more difficult to track and utilities without an automated outage mangament system might not log these interruptions; therefore, some utilities have a MAIFI of zero. Table 8. Average MAIFI MAIFI (interruptions) Your utility N UI....II.... Utilities that use the eReliability Tracker 0.79 Utilities in your region 0.52 Utilities in your customer size class 0.45 Table 9. Summary MAIFI data from the eReliability Tracker MAIFI (interruptions) Minimum Value 0 First Quartile 0.01 Median Value 0.09 Third Quartile 0.59 Maximum Value 19.4 2.5 Ln 0 - 2.0 a L L 4J 1.5 6L Q 1.0 57 Q 0.5 W 0.0 APPA Regions Figure 6. Average MAIFI for all utilities that use the eReliability Tracker by region 9 11.5. Average Service Availability Index (ASAI) ASAI is a measure of the average availability of the sub -transmission and distribution systems that serve customers. This load -based index represents the percentage availability of electric service to customers within the period analyzed. It is calculated by dividing the total hours in which service is available to customers by the total hours that service is demanded by the customers. For example, an ASAI of 99.99% means that electric service was available for 99.99% of the time during the given period. Note that the higher your ASAI value, the better the performance. In the tables below, scheduled and unscheduled calculations include MEs. Also note that wherever MEs are excluded, the exclusion is based on the APPA's ME threshold for your system. Table 10. Average ASAI with and without MEs in % All No MEs Unscheduled Scheduled Your utility 9 9,999 2. )9 ) 92 99,999 2 "_�N UI....II.... Utilities that use the eReliability Tracker 99.9789 99.9916 99.9815 99.9955 Utilities in your region 99.9871 99.9943 99.9874 99.9995 Utilities in vour customer size class 99.9852 199.9937 1 99.9856 1 99.9994 Table 11. Summary ASAI data from the eReliability Tracker All No MEs Unscheduled Scheduled Maximum Value 100 100 100 100 First Quartile 99.9967 99.998 99.9971 99.9999 Median Value 99.9912 99.9956 99.9915 99.9997 Third Quartile 99.9792 99.9907 99.9812 99.9992 Minimum Value 99.6586 99.8246 99.7054 99.6942 100.000 99.975 99.950 Q 99.925 Ul d 99.900 Q 99.875 Q 99.850 99.825 99.800 APPA Regions Figure 7. Average ASAI for all utilities that use the eReliability Tracker by region 10 11.6. Energy Information Administration (EIA) Form 861 Data Form EIA-861 collects annual information on electric power industry participants involved in the generation, transmission, distribution, and sale of electric energy in the United States and its territories. In 2014, EIA began publishing reliability statistics in Form EIA-861; therefore, APPA included these statistics in this report for informational purposes. Please note that the following data includes 175 investor -owned, 454 rural cooperative, and 319 public power utilities that were large enough to be required to fill out the full EIA-861 form, and does not include utilities that completed the EIA 861-S form (for smaller entities). Note that the 319 participating public power utilities include entities classified by EIA as municipal, political subdivision, and state. In addition, since the collection and release of EIA form data lags by a year, the data provided here is based on 2020 data that was published October 7, 2021. Therefore, we suggest you only use the aggregate statistics contained herein as an informational tool for further comparison of reliability statistics. In Form EIA-861, an entity provides SAIDI and SAIFI including and excluding Major Event (ME) days in accordance with the IEEE 1366-2003 or IEEE 1366-2012 standard. Although EIA collected other reliability -related data, the tables below only include SAIDI and SAIFI data including and excluding Major Evnet (ME) days. You can download the full set of data at: http://www.eia.gov/electricity/data/eia861/ Table 12. Summary SAIDI data from Form EIA-861, 2020 All I No MEs Average 391.57 135.78 Minimum Value 3.93 0 First Quartile 86.21 56.2 Median Value 178 99.32 Third Quartile 363.35 169.65 Maximum Value 7699.56 1353.2 Table 13. Summary SAIFI data from Form EIA-861, 2020 All I No MEs Average 1.62 1.22 Minimum Value 0.04 0 First Quartile 0.8 0.63 Median Value 1.34 1 Third Quartile 2.1 1.6 Maximum Value 12.93 7.26 11 11.7. Analysis of Miles of Line and Interruptions Analyzing metrics on interruptions by miles of line can help utilities explore the relationship between outages, line exposure, and customer density. This analysis separates utilities into groups of similar average customer density (customers served per mile). As seen in Table 15, utilities that use the eReliability Tracker were split into five customer density groups of approximately 79 utilities each. Note that customer density classes include utilities that either provided their miles of line data to S&P Global Platts or recorded their data in the eReliability Tracker. By using the miles of line -related metrics shown in Table 14 and Table 15, you can benchmark your utility's reliability against system characteristics along with the customer normalized metrics included in the rest of the report. These system topography - related metrics can be helpful in understanding, for example, utility reliability against weather and animal -related outages relative to similarly dense and exposed utilities. Your utility's total miles of line: '.I.'r 4 5 Your utility's overhead miles of line: 2.5 Your utility's underground miles of line: '1.52 Table 14. Total miles of line and interruptions Your utility Utilities that use the eReliability Tracker Utilities in vour region Customers Interrupted per Mile .29 55.57 Your utility's average customer density (customers per mile): 4.2 Your utility belongs to customer density class 3. Table 15. Total miles of line analysis by customer density class Minutes of Interruption per Mile .89 197.81 494.57 Customer Density Customer AverageAverage Average Minutes Class (Customers Density Customers per Interruptions of Interruption per per Mile) Range Mile per Mile per Mile Class 1 0 - 26 12.8 0.26 130.92 Class 2 26 - 42 18.82 0.3 71.62 Class 3 42 - 57 25.52 0.44 344.9 Class 4 57 - 78 60.66 0.43 61.95 Class 5 78 - 1660 87.43 0.7 104.97 12 M. Outage Causes Equipment failure, extreme weather events, wildlife, and vegetation are some of the most common causes of electric system outages.The following pie chart shows the percentages of the primary causes of outages for all utilities using the eReliability Tracker in 2021. Vegetation schec Weather rent Utility Human Error Power supply IN Figure 8. Primary causes of outages for all utilities that use the eReliability Tracker Certain factors, such as regional weather and animal/vegetation patterns, can make some causes more prevalent for a specific group of utilities. The following section of this report includes graphs depicting common causes of outages for your utility, all utilities in your region, and all utilities using the eReliability Tracker. Charts containing aggregate information are customer -weighted to account for differences in utility size for a better analytical comparison. For example, a particularly large utility may have a large number of outages compared to a small utility. To avoid skewing the data toward large utilities, the number of cause occurrences is divided by customer size to account for the differences. In Figures 9 13 -14, the data represent the number of occurrences for each group of 1,000 customers. A customer -weighted occurrence rate of "1" means one outage from that outage cause occurred per 1,000 customers on average in 2021. Note that the sustained outage cause analysis is more comprehensive than the momentary outage cause analysis due to a larger and more robust sample size for sustained outages. Regardless, tracking both sustained and momentary outages helps utilities understand and reduce outages. To successfully use the outage information tracked by your utility, it is imperative to classify and record outages in detail. The more information provided per outage, the more conclusive and practical your analyses will be. 14 111.1. Sustained Outage Causes In general, sustained outages are the most commonly tracked outage type. In analyses of sustained outages, utilities tend to exclude scheduled outages, partial power, customer -related problems, and qualifying major events from their reliability indices calculations. While this is a valid method for reporting, these outages should be included for internal review to make utility -level decisions. In this section, we evaluate common causes of sustained outages for your utility, corresponding region, and for all utilities that use the eReliability Tracker. It is important to note that in this report, sustained outages are classified as outages that last longer than five minutes, as defined by IEEE 1366. 1.75 p 1.50 O L 1.25 Q CL 1.00 v U 41 0.75 L u 0.50 Q 0.25 0.00 Tree Failure of Greater Transmission Equipment Utility Maintenance and Repairs Squirrel Outage Cause Types Figure 9. Top five causes of sustained outages for all utilities that use the eReliability Tracker 0.5 p 0.7 O 0.6 a 0.5 V 0.4 C 0.3 lJ Q ©2 0.1 0.0 Outage Causes Types Figure 10. Top five causes of sustained outages for your utility"' 1. For each utility, the number of occurrences for each cause is divided by that utility's customer size (in 1,000s) to create an occurrence rate that can be compared across different utility sizes. 15 1.75 0 0 1.50 0 1.25 UJ CL 1.00 U 0.75 D LL) 0.50 0 0.25 0.00 Outage Causes Types Figure 11. Top five causes of sustained outages in your region 16 111.2. Momentary Outage Causes The ability to track momentary outages can be difficult or unavailable on some systems, but due to the hazard they pose for electronic equipment, it is important to track and analyze momentary causes. In this section, we evaluate common causes of momentary outages for your utility, region, and customer size class as well as common causes for all utilities that use the eReliability Tracker. Please note that only outages lasting less than five minutes are classified as momentary, as defined by IEEE 1366. In Figures 12 - 14, for each utility, the number of occurrences for each cause is divided by that utility's customer size (in thousands) to create an occurrence rate that can be compared across different utility sizes. 1.4 0 1.2 0 r 1.0 Q a "' 0.8 Q V 0.6 L u 0.4 Q 0.2 0.0 Residential Construction Equipment Replacement Utility Maintenance and Repairs Other - Vegetation Unscheduled Outage Cause Types Figure 12. Top five causes of momentary outages for all utilities that use the eReliability Tracker 0.05 0 0.04 a Q a 0.03 Q 0.01 0.00 I 0.00 0.00 0.00 0.00 0.00 None None None None None Outage Causes Types Figure 13. Top five causes of momentary outages for your utility"' 1. If your utility has less than eight momentary outages recorded in the eReliability Tracker, this graph will be blank. 17 0.6 0 0.5 0.4 Q) 0.3 U 0.0 0.62 0.03 0.03 0.03 Unknown Squirrel Electrical Failure Utility Maintenance and Repairs Equipment Outage Causes Types Figure 14. Top five causes of momentary outages in your region M Thank you for your active participation in the eReliability Tracker service, and we hope this report is useful to your utility in analyzing your system. If you have any questions regarding the material provided in this report, please contact: APPA's Reliability Team Alex Hofmann Nathan Mitchell Ji Yoon Lee Maddy Wendell American Public Power Association 2451 Crystal Drive, Suite 1000 Arlington, VA 22202 Reliability_@PublicPower.org, For more information on reliability, visit https: publicpower.org reliability_. 2451 Crystal Drive Suite 1000 Arlington, VA 22202-4804 w ww,PublicPower.or Copyright 2022 by the American Public Power Association. All rights reserved. 19 Causes Pie Chart Start Date: 01 /01 /2021 End Date: 12/31 /2021 Top-level Cause Vehicle Acc 7% Heat 7% Squirre 13% Hutchinson Utilities Commission Substation: Circuit: Report on Outage: Equipment Damage 7% Wind 20% u Count Duration I Failure Outage Cause Electrical Failure Wind Squirrel Heat Vehicle Accident Storm Equipment Damage Total Po,,,v(.nJn(.,..,j Strong Count 6 3 2 15 ILMISSOURI RIVER ENERGY SER,Es NEWS RELEASE FOR IMMEDIATE RELEASE MRES members earn reliable public power provider recognition 3724 West Avera Drive PO Box 88920 Sioux Falls, SD 57109-8920 Telephone: 605.338.4042 Fax: 605.978.9360 April 1, 2022 SIOUX FALLS, S.D. — Moorhead Public Service (MPS), located in Moorhead, Minnesota, and Brookings Municipal Utilities (BMU), located in Brookings, South Dakota, are among the 114 public power utilities nationwide to be recognized this year for providing reliable and safe electric service under the American Public Power Association's (APPA) Reliable Public Power Provider (RP3) program. Both MPS and BMU earned the Platinum Level designation, and both are members of Missouri River Energy Services (MRES). The RP3 designation, which lasts for three years, recognizes public power utilities that demonstrate proficiency in four key disciplines: reliability, safety, workforce development and system improvement. Marshall Municipal Utilities in Marshall, Minnesota, and Willmar Municipal Utilities in Willmar, Minnesota, earned the Diamond Level designation in 2020. ALP Utilities in Alexandria Minnesota, Detroit Lakes Public Utilities in Detroit Lakes, Minnesota, and Hutchinson Utilities Commission in Hutchinson, Minnesota, all earned the Platinum Level designation within the last two years. These five public power utilities are also members of MRES. In total, 275 of the more than 2,000 public power utilities nationwide hold the RP3 designation. APPA has offered the RP3 designation for 15 years. "Our municipally -owned utilities take pride in powering their communities because their customers are not only owners, but also their neighbors," MRES President and CEO Tom Heller said. "As community -owned, not -for -profit utilities, our members' focus is squarely on the customers. The prestigious RP3 designation indicates the utility's dedication to operating an efficient, safe and reliable distribution system that meets high industry standards." MRES is an organization of 61 member municipalities in the states of Iowa, Minnesota, North Dakota and South Dakota. Each member owns and operates a municipal electric utility. MRES provides its members with energy and a wide range of energy -related services. 99999 For more information, contact Member Services and Communications Vice President Joni Livingston at Missouri River Energy Services, phone: 605-261-3637 or email: joni.livingston@mrenergy.com. HUTCHINSON UTILITIES COMMISSION B Board Action Form mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: Approve Cost of Service & Rate Design Study with UFS Presenter: Jeremy Carter Agenda Item Type: Time Requested (Minutes): 10 New Business Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Hutchinson Utilities Commission has identified that performing a Cost of Service (COS) study every 5 years is critical to ensure adequate revenue requirements are met to conduct HUC business in a proper fashion. The last COS study was conducted in 2017 using 2016 audited financial statements and test data. Before that, one was completed in 2012 using 2010 test data. The proposed cost of service study to be performed in 2022 will use audited financial statements and test data from 2021, which would keep HUC in line performing a COS study every 5 years. The COS study entails generating sufficient revenue requirements to recover operating costs necessary to maintain reasonable operating reserves after funding operations, debt service, and capital projects. Please see attached a COS study proposal from the consulting firm UFS, which completed the last study for HUC. BOARD ACTION REQUESTED: Approve 2022 Cost of Service and Rate Design Study with UFS Fiscal Impact: $36,800 Included in current budget: Yes Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost; Hectroc ands Cost of Serv�ce Study UFS UTILITY FINANCIAL SOLUTIONS, LLC Corporate location: Utility Financial Solutions, LLC 185 Sun Meadow Court Holland, MI USA 49424 (616) 393-9722 Fax (888) 566-4430 mbeauchamp@ufsweb.com O: 616.393.9722 C: 616-403-5450 F: 888.566.4430 April 7, 2022 Utility Financial Solutions, LLC Jeremy Carter Hutchinson Utilities Commission 225 Michigan Avenue Hutchinson, MN 55350 185 Sun Meadow Ct Holland MI, 49424 Utility Financial Solutions, LLC (UFS) is pleased to submit a proposal to provide an electric and gas cost of service and rate design study for Hutchinson Utilities Commission (HUC). Our proposal is based on our prior experience with completing cost of service studies for municipal utilities around the United States. UFS is an internationally known firm with a long-standing relationship and history of assisting municipalities with financial analysis and are recognized experts in the utility field. UFS personnel are instructors for the American Public Power Association, Southern Gas Association, and the National Association of Regulatory Utility Commissioners. Courses UFS instruct include financial planning, cost of service, rate design, and a series of Commission training programs. Proposed Project Manager, Mr. Mark Beauchamp: Mark will oversee project management and contractual agreements. Mr. Beauchamp began Utility Financial Solutions, LLC in 2001 and is the current President of UFS. With industry experience since 1981, Mark has worked with utilities to complete over one thousand cost of service studies. His degrees include Water Purification Technology, Accounting and MBA. His background provides unique experience and knowledge to share with utilities and includes a Class A license in wastewater treatment, water treatment license, Certified Public Accountant and Certified Management Accountant. This unique background has identified Mark as an industry leader in utility cost of service and rate design. Prior Experience: UFS is comprised of experienced staff including economists, engineers, and finance professionals. Our reputation has allowed us to be the recommended rate consulting firm for numerous associations and agencies around the country. Our extensive experience provides utilities with studies that can be relied upon. Please feel free to contact the references included in this proposal. Project Approach: UFS has obtained rate approval for many utilities. Our unique approach includes development of key targets to keep the utility financially stable, development of minimum and maximum levels of rate adjustments, and identification of a long-term rate track for the utility. The key targets and development of the rate track is used as part of an educational presentation for the governing body to obtain guidance and input in the rate making process. Our methodology and the education provided is why we have grown to be the preferred provider of rate study services in the United States. We appreciate the opportunity to submit this proposal and look forward to discussing it with you. If you have questions or need additional information, please contact me at 616.403.5450. Sincerely, /F Mark Beauchamp, CPA, MBA, CMA President, Utility Financial Solutions, LLC F UTILIITY IF IIN'�NA1r�dI IIAL W7l1 NON' , L L . Table of Contents Understanding of Project Requirements....................................................................................................................1 Proposed Work Plan and Project Approach...............................................................................................................3 PreliminaryTasks....................................................................................................................................................3 Development of Five Year Financial Projection and Financial Targets...................................................................5 ElectricCost of Service Study.............................................................................................................................. 11 GasCost of Service.............................................................................................................................................. 15 RateDesign.......................................................................................................................................................... 18 Review of Power Cost Adjustment and Fuel Cost Adjustment........................................................................... 22 Renewable Energy — Net Metering and Avoided Cost........................................................................................ 23 Meetings, Reports and Deliverables....................................................................................................................... 25 FirmQualifications.................................................................................................................................................. 26 QualificationsIntroduction.................................................................................................................................. 26 Summary of Qualifications and Experience......................................................................................................... 27 ProjectTeam Qualifications.................................................................................................................................... 30 Proposedteam members.................................................................................................................................... 30 Resumes.............................................................................................................................................................. 31 References............................................................................................................................................................... 40 ProjectSchedule...................................................................................................................................................... 44 ProjectFees............................................................................................................................................................. 45 Proposed Professional Services Agreement............................................................................................................ 46 FUSSOWTIONS, UTILIITY IF11NA1r�dI IIAL LL . Understanding of Project Requirements Summary of Services — Applicable to both electric and gas utilities unless otherwise noted 1. Five Year Financial Projection that includes the following: a. Determination of Revenue Requirements for each year b. Development and identification of financial targets related to the following: i. Debt Coverage Ratio ii. Minimum Cash Reserves iii. Operating Income c. Identification of long-term rate track to maintain financial stability of utility and minimize the potential rate impacts on customers 2. Development of Cost of Service Study that identifies the following: a. Comparison of cost to provide service to each class with projected revenues b. Identification of potential new rate classes based on load characteristics c. Monthly customer charges for each class of customers d. Transmission delivery charges e. Distribution delivery charges f. Power supply charges (Electric) g. Gas supply charges (Gas) h. Seasonality of costs i. Identification of fixed and variable costs including the following broken out by season: i. Total demand related costs ii. Total commodity related costs iii. Monthly customer related costs j. Identification of costs based on voltage level of customers (Electric) i. Transmission level customer ii. Primary metered customer iii. Secondary metered customer 3. Rate Design (One year for current rate structures of each utility included, additional years if requested) a. Development of rates to move classes closer to cost of service b. Development of rates to move components of rates closer to cost of service c. Identification of Impacts of rate changes by classes considering the following: i. Percentage impacts at various usage levels ii. Dollar impacts at various usage levels iii. Percentage impacts for demand rate classes based on load factors d. Identification of overall rate impacts on customers i. Proposed rate design for each current rate class ii. Rate impacts on each current customer class iii. Rate impacts at various levels of usage for each current rate class UFS Proposal for Hutchinson Utilities Commission P a g e 1 1 FUSSOWTIONS, Il�TILII'�"d IF II A1f�#ICIIAL LL . 4. Presentation to Staff and Governing Body a. Review results and assumptions b. Development of appropriate financial targets c. Obtain input and feedback on rate track and rate designs including: i. Overall rate change for each year ii. Customer charges iii. Review seasonality of rates d. Discussion of overall goals and objectives of management and Council including: i. Energy conservation ii. Economic development iii. Distributed generation customers iv. Other considerations in rate design 5. Reports a. Executive summary report discussing the following: i. Financial projection results and rate adjustment to achieve financial targets ii. Cost of service results for each rate class iii. Cost based rate structures iv. Assumptions used in development of study v. Recommendations on rate track, movement toward cost of service, financial targets, others as identified UFS Proposal for Hutchinson Utilities Commission P a g e 1 2 FUSSOWTIONS, UTILIITY IF11NA1r�dI IIAL LtL . Proposed Work Plan and Project Approach Our approach to this project was developed to meet the objectives of Hutchinson Utilities Commission (HUC) and is based on the scope of services and UFS prior experience in completing electric and gas cost of service studies around the nation. Listed below are more detailed descriptions of the services provided, our process and sample outputs from our studies. Our proposed work plan is designed to meet the requirements and methodologies established in the industry. Prehminary Tasks Listed below are tasks to develop the financial projection and cost of service portion of the study. 1. Review of Relevant Reports Review of certain reports is necessary to ensure the study is established to fit the specific requirements of HUC. Listed below are examples of reports to obtain and review. • Yearly financial, operating, and maintenance reports including fixed assets reports • Outstanding bond issues and specific bond covenants • Rate schedules and any special contracts 2. Collect and Verify Data Conference call with utility management is critical to ensuring the final reports will meet the objectives of HUC and the information request prepared by UFS is understood. The specific objectives of the discussion will be to: • Identify and clarify the scope of services and specific expectations of management • Review billing system capabilities for providing the information necessary for the cost of service analysis. We will complete one revenue proof to reconcile revenues received compared with calculated revenues from billing system. • Review chart of accounts and determine strengths and weaknesses and its consistency with utility accounting practices • Availability of load research data and develop a plan to obtain information needed by cost of service study • Discuss with management the strengths and weaknesses of determining utility revenue requirements using a utility basis vs. cash basis • Discuss power supply and recent or anticipated changes in rates or operations • Review of transmission charges • Additions or losses of major customers UFS Proposal for Hutchinson Utilities Commission P a g e 1 3 UTILITY FINANCIAL WTIION'q' , LL . 3. Preparation of Data Request After completion of the preliminary tasks UFS will prepare an information request that will include the necessary information to complete the study. Listed below are specific reports that will be requested: Electric • Customer billing and usage statistics by month for latest fiscal year • Monthly production statistics or power supply purchases • Power supply rates for upcoming years • System hourly load information • Trial balances for latest two years • Audited financial statements for the latest three years • Debt service schedules • Current work -in -process • Future capital improvement plan • Power Supply costs • System load data (if available for example through a SCADA system) Gas • Customer billing and usage statistics by month for latest fiscal year • Monthly gas supply purchases • Gas supply rates for upcoming years • Trial balances for latest two years • Audited financial statements for the latest three years • Debt service schedules • Current work -in -process • Future capital improvement plan UFS Proposal for Hutchinson Utilities Commission P a g e 14 UTILITY IFIINA,NI IIAL LUUTIIC)N , LLO. D vellopme nt of Five Year If:::iInIrn i 11 Projection and Film indi ll ""II'"'argets Development of Sales Projection Customer usages will be projected based on historical growth rates adjusted for high or low usages on a yearly basis. Electric and gas sales can fluctuate substantially based on weather and has varying effects on each customer classes' usage. Customer growth rates and usage patterns will be normalized and projected for future years. We will discuss with HUC internal growth projections used and compare to determine appropriate growth rates. As an optional service, UFS will develop an econometric modeling forecast using multiple regression analysis, based on external factors such as demographic data and weather information for use as independent variables. Through review of historical sales and discussion with utility staff we will develop a projection of the following: 1. Future energy sales 2. Future gas sales 3. Number of customers 4. Billing demands 5. Miscellaneous revenues Development of Utility Revenue Requirements Revenue requirements are developed through review of historical expenses and discussions with the utility on changes in costs and the utility's budget. Completion of this tasks is summarized below: • Operating Expense Projection Operating expenses often include expenses related to operation, maintenance and administration of the utility and the distribution system. Operating expense projections are often based on historical expenses adjusted for changes in costs and includes adjustments for changes that management anticipates will occur in the future. • Sales Growth Projection The number of customers and billing units will be projected based on historical growth rates adjusted for high or low usages on a yearly basis. We will discuss with management any significant changes in the number or amount of usage for large industrial customers. Sales will be projected for the test year and future years in the projection model. • Power Supply Projection Power supply costs typically represent over 70% of an electric utility's total revenue requirement. The magnitude of this expenditure requires this projection to be based on reasonable assumptions that are documented and reviewed with management. To project power supply expenses, we often review the latest twelve months of detail power supply invoices and develop a power supply projection model where we can include growth of the system and changes in power supply costs. We will work with utility staff to estimate power supply costs based on the projected monthly loads. UFS Proposal for Hutchinson Utilities Commission P a g e 1 5 UTILITY FINANCIAL WMI N , L L . • Gas Supply Projection Gas supply costs typically represent over 70% of a gas department's total revenue requirement. To project gas supply we often review the latest twelve months of detail gas supply invoices and develop a gas supply projection model where we can include growth of the system and changes in gas supply costs. We will work with department staff to estimate gas supply costs based on the projected monthly requirements. • Transmission Cost Projection Transmission costs are often included as part of the power/gas supply bill or may be in a separate invoice. As part of the power and gas supply projections we will include changes in demand rates for transmission and review the transmission cost projection with utility staff. • Debt Service The amortization schedules for outstanding debt service will be incorporated into the financial projection. The corresponding principal and interest expense are appropriately classified into the income statement and cash flow sections of the long term financial projection. Any potential future bonding requirements will be identified and incorporated into the projection with the debt coverage ratios compared with the bond ordinance requirements adjusted for certain safety factors to adjust for changes in weather and the subsequent sales of electricity. • Capital Improvement Plan A critical part of the financial projection is the capital improvement plan received from the utility. Often the capital improvement plan UFS receives is reviewed with utility staff for reasonableness and capabilities of the utility to complete the projects as stated. The financial projection analysis can easily incorporate sensitivity analysis for changes in capital, but it is preferred that the report includes a reasonable approximation of the annual expense. The financial model will incorporate the capital plan and identify the sources of funding either from existing cash reserves, the annual rate funded capital or through the issuance of bonds. UFS financial analysis and the subsequent cost of service studies are unique in their ability to easily change from cash basis revenue requirements to accrual basis (Utility Basis) revenue requirements. The financial analysis includes both cash basis targets such as cash reserves and debt coverage; and accrual basis targets such as rate of return. Listed on following pages are discussion of the development of the three main financial targets for utilities. UFS studies also include a review of secondary financial matrices such as debt/equity ratios, age of system, days cash on hand and working capital requirements as part of the overall assessment of the financial health of the utility. UFS Proposal for Hutchinson Utilities Commission P a g e 1 6 UTILITY FINANCIAL S LCUTIIONS, LL . Target One: Debt Coverage Ratio Based on review of bond issues and debt service schedules, the principal and interest expense will be identified and incorporated into the analysis. We will provide a table as shown below to compare projected Debt Service Ratios with requirements in the Bond Ordinance. Sample Report Table: Debt Coverage Ratio graph and calculation: ,I srgf-A ':I Debt (a,era,:ugoaLA'io 4 GG 3,G00 .................................... 2GO 1,Y00 2020 2021.2132.2. 2023 202�a -^- ^.Debt C;4ove.rageftatlo-TargErt Ratuo Description ProjectedYI Projected Y2 ProjectedY3 Project-edY4 Projectec!Y5 et Income 9 6,826 9 7,462 945,213 826,113 758,497 Add Depr,eciatioi,i/ mportizatiori Expense 2,565,601 2,60,9,101 2,732,859 2,921,523 3,057,531 Add Interest Expense 764,408 726,408 688,408 648,408 606,408 Cash Generated from, Operations 4,326,835 4,332,972 4,366,4,80 4,396,044 4,422,435 Debt Principal and Interest 1,714,408 1,676,408 1,688,408 1,698,408 1,706,408 IIroyectedDeist Coverage Ratio (Covenants) 2.52 2.58 2.59 2.59 2.59 Minimum Deist Coverage Ratio 1.4 1.4 1.4 1.4 1.4 UFS Proposal for Hutchinson Utilities Commission P a g e 1 7 UTILITY FINANCIAL LChTIIC)N', LL. Target Two: Minimum Cash Reserve Calculation To help ensure timely completion of capital improvements and enable the utility to meet requirements for large, unexpected expenditures and risk factors, the recommended minimum level of cash reserves will be identified. Development of the minimum cash reserves considers several factors. A sample list is below: • Working capital • Variations in expenses • Capital improvement programs • Annual bond payments • Exposure to catastrophic events such as extreme weather Sample Report Table: Minimum Cash Reserves „„„ 1 e P ov o n II A, , 1anu 0, GOT, PryrU 1 5,�.riC�1, Ccn, 5,. Prfi:7ject _ri Cash BawWc es rReo)rYIf erlC ed NA, filfu nun i Cash Projected Projected P'rojected P'rofected Projected Description Y1, Y2 Y3- Y4 Y5- Mlnlrnurn Cashm Res aer e Allocation Operation, & Maintenances Less Depreciation Expense 25.0% 2.5. % 25. % 25. i 25.M° Purchase P'olveer Expense 25.0% 2.5. % 25. % 25. i 25.M° Historical Rate Base 2.0% 2. % 2. % 2..Mi 2.Mi Current Portion of Debt: 5ervice Payrnent 83% 3° 83 83 83 FiveYear Capital Irnprove menis - Net of bonus proceeds 20% 20% 7 � 7 % 20% ,i Plant Depreciated 5Ep�i 54% 55% 55% 59% CaIcuaulate d NIinirnurn Cashi LeveI Operation, & Maintenance Less Depreciation Expense 6,1589,952 6,762,41 61 1„1318 7,153,036, 7,281,3 3 Purchase Power Expense 8,1381„482 91722,1,32 9,S82.,9,84 10,548,544 91731,91.1. Historical Rate Base 1,527,454 1,6,85,1254 1,76,9151.1 1,877,919 1„877,918 Current Portion of Debt Service Reserve 1,351,419 1,4031„379 1,4109,679 1,416,,319 1,462,799 Five Year Capital Improvements - Netof bond proceeds 3,939,6F 3,93.916fi, 3,5391E 3,939,646 3,939,6fi Minimum Cas,hr FReserveLuviels 521,829,952 !S7351.4,810 524,043,138 524,935,457 574,293, 7 Projected Cashr FR,eserva°es 574,692,803 $119,224� 03 Il7182%25. 115,047,23a, iS,17,559.446 UFS Proposal for Hutchinson Utilities Commission P a g e 18 UTILITY FINANCIAL S WTII NS, LLO. Target Three: Operating Income The optimal target for setting rates is the establishment of a target operating income to consistently fund capital improvements and replacements. Development of this target considers the following: • Interest expense on the outstanding debt • Inflationary increase on asset replacement costs • Assets contributed by customers to the Utility Sample Report Table: Target Operating Income Ta d-y, " U� "'# �,�" 1 k I�.. II b- I it , k„1 II 9C,;a� $1 %fJ11 09-'0' 55c,c coo 1,. w»+,v......... .Afe (.,l.ri.ed (C3perating �I lc'cni% , —mDo Target i_bpepnafnng Income e Projected Projected Projected Projected Proje-cted Description Y1 Y2 YS Y4 Y5 Target Operating Income Determinants Net Eao,ok VaIue/Work.in,g Capital '$33,525,928 $38,888,526 ''39,931,938 $42,194,174 '38,927,64-4 Outstanding Principal on Debt 18,,160,200 17,,210,200 16,,210,200 15,160,200 14,,060,200 System, Equity $15,365,728 $21,678,326 $23,721,73E $27,033,974 24,857,444 Target Operating Income Allocation Intereston Debt 4.21% 4.22% 4.25% 4.28% 4.31% System, Equity 7.06' 6.73' 6.87' 6.90% 7.46' Target Operating Income System Equity 1,085,106 1,459,590 1,629,336 1,664,944 1,859,437 Target Operating Income 71,849,5714 $ 2,7185,998 2,3717,746 2,5713,352 $ 2,465,845 Projected Operating Ilnromne 2,728,770 $ 2,599,6471 2,394,956 2;247,337 2, 37,l6619 Rate of Retuuirn In 5.,5% 5,,6 53% 6,0' 6.3 UFS Proposal for Hutchinson Utilities Commission P a g e 19 UITIL111�Y FINANCIAL S W711 NS, LL . Five -Year Projection Summary The projections will be summarized, and development of alternative rate tracks will be reviewed and compared to each financial target to help ensure the future financial stability of the utility. We will work with Management and the Governing body in review and development of five-year strategies and rate track. All adjustments are tied to the cost of service study for the test year, so results can easily be updated, and sensitivities run within the same model. Projected Summary Financial before Rate Adjustments Adjusted Target Capital Fiscal Projected (Rate Operating Operating Projected Cash Recommended Improvements Debt Coverage Year Adjustments Income Income Balances Minimum Cash Plan Ratio Year 1 0.0% $ 2,728,770 $ 3,038,480 $ 16,392, 21 $ 18,099,160 $ 6,065,000 LIM Year 2 0.0% 2,711,845 3,019,772 14,592,41 19,169,551 2,175,000 111 ! Year 3 0.0% 2,622,411 3,061,319 10,964,992 19,674,886 4,012,870 1.11 Year 0.0% 2,473,225 i 3,149,568 5,938,354 20,516,844 5,420,360 1.12 Year 5 0.0%4 2,380,491 3,098,229 41959,247 20,862,261 1,380,000 1.12 Projected Summary Financials with Rate Adjustment and $5.0 million bond issuance Adjusted Target Capital Fiscal' Projected Rate Operating Operating Projected Cash Recommended Improvements Debt Coverage Year Adjustments. Income Income Balances Minimum Cash Plan Ratio Year 1 2.0% $ 3,350,054 $ 3,038,480 $ 17,013,904 $ 18,099,160 $ 6,065,000 1.2 Year 2 2.0%4 3,972,613 3,019,772 22,477,689 19,169,551 2,175,000 1.44 Year 3 1.0% 4,216,200 3,061,319 21,453,355 19,674,886 4,012,870 1.53 Year 4 1.0% 4,407,444 3,149,568 21,578,377 20,516,844 5,420,360 1.62 Year 5 1.0%4 4,662,614 3,098,229 21,908,593 20,862,261 1,380,000 1.71 UFS Proposal for Hutchinson Utilities Commission P a g e 1 10 FUSSOW711ONS, UTILIIT' IF"II A1NI IIAL LtL. Ellectric Cost of Service Ludy The development of the cost of service study incorporates the revenue requirement identified as part of the financial projection. This section describes the additional procedures used in development of the cost of service study and sample outputs from previous studies. Development of customer class demands, and allocation factors used to allocate revenue requirements Load Profile Information Load profile information identifies how customers use electricity at various times of the day and is critical to ensure the cost of service study is accurate and defensible. UFS works with utility staff in identification of the appropriate sources of load research information. We will analyze information from the following sources: • Electronic meters installed on time of use and other customers • Load research information available from other sources • Analysis of substation feeders • Utilize our data base of existing load research obtained from other utilities The load research information identifies the monthly load factors for each class, how much is being used by the class at the peak time of the day when power supply demand or transmission demand charges are determined. The load research information is compared with the hourly system hourly load data to determine the class contributions. The information is then used to determine the class share of transmission and power supply costs. System Losses Losses can vary substantially depending on system loading and temperature. We will identify the system loss at the various voltage levels of service to customers. To determine the overall system losses, we typically use a three-year average of losses to reduce the impact of changing weather patterns between the last and first month of each year. The losses are then allocated between voltage level such as transmission, substations, primary service and secondary voltage levels. Development of Allocators The load profile information for each class is used to determine the allocation factors used to allocate expenses based on cost -causation. Examples of cost causation include the identification of the date and time power supply demand charges are determined and each class usage at the time of the peak demands. There are over 40 allocation factors often developed as part of a UFS cost of service study. Allocation factors are developed for each season and developed for specific expenses. A summary of the costs where specific allocation factors need to be developed are listed on the next page. UFS Proposal for Hutchinson Utilities Commission P a g e 1 11 FUSSOW71IONS, UTlLIIT' IF II AIf�#I IIAL LtL . Prepare Cost of Service Analysis Customer classes are typically established based on differences in load and usage patterns electricity dictates the cost of providing many of the utility services. The cost of service portion of the model will determine the following: Adjustments neccesary to meet financial targets: target operating income, minimum cash reserves, debt coverage ratio Actual costs compared with projected revenues by class and adjustments neccessary to meet requirements Monthly customer charge, energy charge, and demand charge (for demand metered customers) broken down by customer class A summary of the cost of service analysis is developed similar to the table below: How customers use Customer Class Cost of Service Projected Revenues % Change Residential A 4,672,077 4,183,897 11.7% General Secondary B 3,032,446 2,974,374 2.0% Street Light Service S 144,370 133,504 8.1% Secondary Energy & Demand C 3,144,714 3,072,174 2.4% Primary Energy & Demand D 20,191,294 20,700,210 -2.5% Total $a 31,184,902 31,064,158 0.4% The cost of service column from the table above identifies the cost to provide service to each class of customers and is compared with the projected revenues from each class. The percent change is the rate adjustment necessary for each class to achieve cost of service. We typically do not recommend rates move fully to cost of service, but as part of the discussions with staff and Council we develop a plan to move classes toward cost of service to minimize rate impacts on any specific customer class. UFS Proposal for Hutchinson Utilities Commission P a g e 1 12 UTILITY IFIIIIIA,Ir I IAL WTIIC)N , LLO. Development of new rate classes As part of the initial discussions with management and review of the existing rate tariffs, we will discuss with utility staff if new rate classes should be considered or if existing rate classes should be combined. Rate classes are created based on similarity in usage patterns, but often utilities will develop new rate classes to create incentives for customers to shift usage to periods of time where power supply costs are lower such as on and off peak time periods for time of use rates. Examples of new rate class developments are listed below. • Standby charges — Cost isolated by investment in facilities to serve customers on a standby basis. • Interruptible Loads — Rates to promote interruptible loads that reflect the savings to HUC. Our study will isolate costs by power supply demand, energy and transmission to identify the potential cost savings of an interruptible customer. • Seasonal Rates —The cost of service study allocates costs to each rate class based on seasonal time period. The time periods will be identified through review of system loads and power supply and transmission costs. • Time of Use — For time of use rates to be effective in sending the proper price signal, the cost of service analysis is supplemented with marginal costs to identify and recommend appropriate charges on a time of use basis. • Economic Development Rates • Rates can be developed to promote economic development by attracting new customers or expansion of existing customers. It is important economic development rates be developed using a marginal cost approach to ensure existing customers are not unduly subsidizing any reduce rates or fees charged under an economic development program. • Other Potential Rates are listed below: 1. Public education rates 2. Green Rates 3. Net Metering Rates 4. Aggregation Rates New rate designs may result in additional charges for the services provided by UFS. As part of the initial kick off conference call, we should discuss if any potential new rate classes are being considered. UFS Proposal for Hutchinson Utilities Commission P a g e 1 13 UTILITY FINANCIAL SOWTIONS, LLC Breakdown ofcost ofservice rate structure bytype ofexpense for each class ofcustomers UFS cost of service studies identify cost in a summary and a detail cost breakdown for each class of customers. For example, the summary of costs identifies the class cost breakdown by customer charge, power supply demand, transmission demand, distribution demand and energy costs. Anexample islisted below: Monthly Customer [umomer[ass Charge Residential 13.65 � General Secondary B 26.60 Street Light Service 5 ' Secondary Energy & Demand [ 120.60 Primary Energy & Demand D 223.90 Power Supp�ly Suinninneir Winter Distribution | | Rate Demand Energy Deimaind Energy 0.0249 $ 0.0181 $ 0.0479 $0.0101 $ 0.0353 0.0288 0.0311 0.0550 0.0136 0.0319 0.1752 ' 0.0689 ' 0.0300 8.52 12.09 0.0577 4.88 0.0313 7.24 12.38 0.0573 4.85 0.0296 In addition, further breakdowns are available in the studies depending on the needs of each utility.Asamp|e detailed breakdown of distribution costs is listed below: Wh Wh KW KW Secondary Primary General Emergy& Emergy& nateBreakdowm Residential Secondary B Demand C DernaindD Demand Breakdown Distribution 0.0110 0.0117 3.44 2.95 Transmission 0.0059 0.0084 2.91 2.91 Transformer 0.0027 0.0029 0.73 Substation 0.0052 0.0057 1.43 1.39 Direct Subtotal kVVh'kW,HPCharge 0.0249 0.0288 8.52 7.24 Customer Breakdown Distribution Customer Costs 6.07 12.13 54.59 109.18 Transformer Customer Costs 2.07 4.14 18.62 Meter O&M 0.57 0.57 2.87 39.11 Meter Reading 0.13 0.13 1.15 2.30 Billing 0.08 0.15 070 1.39 Services 1.20 2.44 10.83 8.23 UFS Proposal for Hutchinson Utilities Commission P a g e 1 14 UTILITY FllNA,INI IIAL W7110N , LL . Gas Cost of Service The development of a cost of service study incorporates the revenue requirement identified as part of the financial projection. This section describes the additional procedures used in development of the cost of service study and sample outputs from previous studies. Development of Allocators Customers usage information will be used to allocate expenses based on cost -causation, allocators will be developed on a seasonal and annual basis and used to determine the following costs for each customer class. • Purchased cost of Natural Gas • Transportation of Gas Supply to HUC • Distribution related costs • Customer related costs for each class of customer Prepare Cost of Service Analysis Customer classes are typically established based on differences in usage patterns. How customers use natural gas dictates the cost of providing many of HUC services. The cost of service portion of the model will determine the following: • Rate adjustment necessary to meet rate of return requirements of the utility • Cost to serve each class compared with projected revenues • Rate adjustment necessary for class to meet cost of service requirements • Monthly customer charge by class • Commodity charges for each customer class A summary of the cost of service analysis is developed similar to the table below i Residential 11,204,309 $ 10,527,368 6% Firm Commercial 5,120,204 4,773,971 7% Commercial Transportation 17,692 24,148 -27% Interruptible Commercial 579,302 618,785 -6% Firm Industrial 1,656,619 1,538,041 8% Interruptible Industrial 806,610 840,675 -4% Interruptible Industrial w/ Hedging 7,511,241 7,492,706 0% Firm Industrial Transportation 303,936 313,940 -3% Total $ 27,199,912 $ 26,129,635 4.1% The cost of service column "% Adjustment Required" from the table on the previous page identifies the cost to provide service to each class of customers and is compared with the projected revenues from each class. The percent change is the rate adjustment necessary for each class to achieve cost of service. We typically do not recommend rates move fully to cost of service, but as part of the discussions with staff and Board of Commissioners we will develop a plan to move classes toward cost of service to minimize rate impacts on any specific customer class. UFS Proposal for Hutchinson Utilities Commission P a g e 1 15 UTILITY FINANCIAL WTIIC)N , LtL . Development of new rate classes As part of the initial discussions with management and review of the existing rate tariffs, we will discuss with utility staff if new rate classes should be considered or if existing rate classes should be combined. Rate classes are created based on similarity in usage patterns, but often utilities will develop new rate classes to create incentives for customers to shift usage to periods of time where gas supply costs are lower. Most new rate designs do not result in additional charges for the services provided by UFS, unless it requires substantial additional analysis. As part of the initial kick off meeting, we should discuss if any potential new rate classes are being considered. Unbundling costs by type of expense for each class of customers To obtain information for setting distribution rates the gas unbundling study isolates revenue requirements into various components required to deliver gas to a customer. As part of the study we will unbundle the utility costs in the following manner. • Gas supply cost by month • Transportation related costs to HUC Gate • Local Transportation related costs and operation and maintenance costs of the system • Customer service costs for meter installation, meter reading, billing and collections, customer service and any direct cost for specific customer classes Allocation of Revenue Requirements - Example Gas Firm Commodity Purchases $ 10,801,079 Firm Sales 6,332,619 3,307,888 - 1,160,573 - - Gas Interuptible Commodity Purchases 5,488,582 Interuptible Sales - - 351,395 - 482,060 4,655,128 - Distribution Overhead 1,060,154 Distribution Expense 489,931 180,025 1,597 21,253 48,738 30,311 263,003 25,296 Measuring & Regulating Equipment 4,050 Avg & Excess 1,415 654 8 113 258 134 1,335 134 Mains MCF Related 218,416 Total Sales 56,875 29,709 479 6,579 10,423 9,026 87,160 18,164 Mains Demand Related 133,811 Peak Demand 34,844 18,201 293 4,031 6,386 5,530 53,399 11,128 Services- Customer related 101,227 Weighted Services Distribution 79,366 17,737 234 146 1,345 877 585 936 Regulators Demand 4,672 Peak Demand 1,216 635 10 141 223 193 1,864 389 Regulators MCF's 2,862 Sales Distribution 778 406 7 90 143 123 1,192 124 Meters 193,869 Meter Cost 159,824 29,765 196 20 2,597 339 226 903 Shop & Field Equipment 4,715 NBV 1,769 704 10 117 203 165 1,530 218 Customer Service 302,937 Weighted Services 235,338 52,594 694 434 3,990 2,602 1,735 5,551 Billing 466,458 Billing 365,721 81,733 1,078 674 6,200 4,044 2,696 4,313 GF Equity Transfers 3,008,330 City Transfer Out 1,212,026 549,632 2,780 71,241 177,076 96,788 862,642 36,144 Uncollectible 54,662 Revenues 22,023 9,987 51 1,294 3,217 1,759 15,674 657 Other Revenues/Expenses 2,045,604 Distribution Expense 945,338 347,364 3,081 41,009 94,042 58,486 507,474 48,810 Debt Service and Revenue Financed Capital 1,952,962 ROR 732,655 291,376 4,197 48,314 84,270 68,424 633,626 90,100 Total Expenses $ 26,844,391 r$10,671,737 $4,918,409 $ 14,714 $646,861 $1,699,684 $760,868 $7,089,270 $242,867 General Plant 89,464 Avg & Excess 31,251 14,445 176 2,498 5,690 2,950 29,500 2,953 Measuring & Regulating Equipment 25,895 Sales Distribution 7,036 3,675 59 814 1,289 1,117 10,782 1,123 Mains - Sales Distribution - - - - - - - - Mains MCF 562,288 Sales Distribution 152,771 79,801 1,286 17,673 27,998 24,244 234,121 24,396 Mains Demand 344,483 Peak Demand 89,703 46,857 753 10,377 16,440 14,236 137,469 28,649 Services Customer Related 261,862 Weighted Services Distribution 205,310 45,883 605 378 3,481 2,270 1,513 2,421 Regulators Demand 15,404 Anytime Peak Average 5,612 2,618 29 401 927 435 4,491 891 Regulators MCF 9,437 Sales Distribution 2,564 1,339 22 297 470 407 3,929 409 Meters 46,240 Meter Cost 38,120 7,099 47 5 619 81 54 215 Other Equipment 448 Distribution Expense 207 76 1 9 21 13 111 11 Total Depreciation Expense $ 1,366,622 $ 632,672 $ 201,794 $ 2,978 $ 32,461 $ 66,936 $ 46,762 $ 421,971 $ 61,069 Revenue Requirements 27.199.912 $11,204,309 $6,120,204 $ 17,692 $679,302 $1,666,619 $806,610 $7,611,241 $303,936 UFS Proposal for Hutchinson Utilities Commission P a g e 1 16 UTILITY FINANCIAL WTII ICI' , LL . Gas Distribution Rate Summary and Breakdown Cost of Service. Distribution Charges Monthly Total Customer General Fund Distribution Customer Class Charge Equity Transfers Distribution Rate Billing Basis Residential $ 12.58 $ 0.2133 $ 0.1180 $ 0.3313 Therms Firm Commercial 24.46 0.1851 0.1165 0.3017 Therms Commercial Transportation 45.40 0.0581 0.1123 0.1704 Therms Interruptible Commercial 265.25 0.1084 0.1134 0.2218 Therms Firm Industrial 124.95 0.1700 0.1170 0.2870 Therms Interruptible Industrial 543.71 0.1073 0.1125 0.2198 Therms Interruptible Industrial w/ Hedl 543.71 0.0990 0.1126 0.2116 Therms Firm Industrial Transportation 275.92 0.0199 0.0803 0.1002 Therms Gas Supply Cost by Class and Breakdown Total Commodity Administrative PG&E Local Commodity Customer Class Charge Fee Transportation Rate Billing Basis G1 - Residential 0.794 0.028 0.023 0.846 therm G2 - Commercial 0.794 0.028 0.023 0.846 therm G3 - Large Comm 0.684 0.028 0.023 0.736 therm G6 - Municipal 0.794 0.028 0.023 0.846 therm G-8 - Cobug 0.684 0.028 0.023 0.736 therm G10 - Compressed 0.684 0.028 0.023 0.736 therm UFS Proposal for Hutchinson Utilities Commission P a g e 1 17 UTILITY FINANCIAL SOWTIINS, LtLG. Design of utility rates uses input from the cost of service study as guidance on changes to current rate classes and the rate components for each rate class. Cost of service results are one factor in design of rates for customers. Other factors must be considered such as impact on customers, social and environmental issues, and philosophy of the utility's governing body. UFS will develop and recommend a schedule of electric and gas rates designed to generate adequate revenues from current rate structures and reflect or move toward the recommended rate adjustment. A five year rate track will be provided with the financial projection. The rate design model identifies the impacts on customers at various usage levels similar to the tables below and is listed by rate class, meter size and usage level. Summary of overall rate adjustments for each class - Electric Projected Projected Projected Revenues Under Percentage Revenues Under Proposed Rates Change Customer Class Current Rates Year 1 Year 1 Residential A $ 4,183,897 $ 4,272,065 2.11% General Secondary B 2,974,374 3,019,822 1.53% Street Light Service S 133,504 135,687 1.64% Secondary Energy & Demand C 3,072,174 3,125,649 1.74% Primary Energy & Demand D 20,700,210 20,956,423 1.24% Totals $ 31,064,158 $ 31,509,647 1.43% Summary of overall rate adjustments for each class —Gas Residential $ 10,401,709 $ 10,620,897 $ 219,188 2.1% Firm Commercial 4,702,929 4,804,923 101,994 2.2% Commercial Transportation 24,522 24,859 337 1.4% Interruptible Commercial 605,130 614,652 9,522 1.6% Firm Industrial 1,510,731 1,547,062 36,331 2.4% Interruptible Industrial 822,292 834,935 12,643 1.5% Interruptible Industrial w/ Hedging 7,304,014 7,431,105 127,091 1.7% Firm Industrial Transportation 318,799 325,175 6,376 2.0% Total $ 25.690.126 $ 26.203.609 $ 513.483 2.00% UFS Proposal for Hutchinson Utilities Commission P a g e 1 18 UTILITY FINANCIAL WTIC)N , LL . Electric Sample Rate Design, Single Year Projected Residential Rates Rates Current Year 1 COS Monthly Facilities Charge: All Customers $ 6.50 $ 8.50 $ 14.47 Energy Charge: All Energy $ 0.0681 $ 0.0666 $ 0.08093 Revenue from Rate $ 3,584,465 $ 3,648,247 $ 4,709,219 Change from Previous 1.8% Change by Monthly kWh Usage (%) 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 4 0 650 900 11SO 1400 16SO 1900 0 -2.0% Average Monthly Bill Increase by Usage Year 1 Year 1 All Energy $ % 400 $1.40 4.1% 650 $1.03 2.0% 900 $0.65 1.0% 1150 $0.28 0.3% 1400 ($()o w) -0.1% 1650 ($0A 7) -0.4% 1900 ($0811!) -0.6% 2150 ($ L22) -0.8% 2400 ($ L60) -0.9% 2650 ($1.97) -1.1% UFS Proposal for Hutchinson Utilities Commission P a g e 1 19 UITILITY FINANCIAL WTION , LL . Electric Sample Rate Design, Multi Year Projected Residential Rates Rates Current Year 1 Year 2 Year 3 I COS Rates Monthly Facilities Charge: All Customers $ 11.75 $ 13.25 $ 14.75 $ 16.25 $ 18.86 Energy Charge: Winter All Energy $ 0.1018 $ 0.1019 $ 0.1020 $ 0.1020 $ 0.10383 Summer Block 1 (First 20 kWhs per day) $ 0.1100 $ 0.1100 $ 0.1100 $ 0.1070 $ 0.10383 Summer Block 2 (Excess) $ 0.1249 $ 0.1240 $ 0.1220 $ 0.1190 $ 0.10383 lu.ulo .0 80% 7b 60 b% 40N. 310% 2.0% 1,0 00 400 Revenue from Rate $ 10,337,868 $ 10,553,155 $ 10,762,483 $ 10,879,557 $ 11,175,415 Change from Previous 2.1% 2.0% 1.1% Change by Monthly kWh Usage (%) ---Year I--mmm-Year 2 -Year 3 Average Monthly Bill Increase by Usage Year 1 Year 1 $ Year 2 Year 2 $ Year 3 Year 3 $ All Energy $ % $ % $ 400 $1.52 2.8% $1.53 2.8% $1.10 1.9% 500 $1.52 2.4% $1.53 2.3% $1.00 1.5% 600 $1.53 2.0% $1.54 2.0% $0.90 1.2% 700 $1.50 1.9% $1.49 1.8% $0.80 1.0% 800 $1.47 1.7% $1.42 1.6% $0.70 0.8% 900 $1.44 1.6% $1.35 1.5% $0.60 0.7% 1000 $1.41 1.5% $1.29 1.4% $0.50 0.5% 1100 $1.38 1.4% $1.22 1.2% $0.40 0.4% 1200 $1.35 1.3% $1.15 1.1% $0.30 0.3% 1300 $1.32 1.2% $1.09 1.0% $0.20 0.2% UFS Proposal for Hutchinson Utilities Commission P a g e 1 20 UTILITY FINANCIAL WTIIC)N , LL . Gas Sample Rate Design, Multi Year Gas Rate Design Residential Rates Current Year 1 Year 2 Year 3 Monthly Facilities Charge: All Customers $ 8.50 $ 10.00 $ 11.50 $ 13.00 Base Commodity Charge: All CCF $ 0.66900 $ 0.63232 $ 0.62289 $ 0.61409 Incremental Cost of Gas: All CCF $ 0.30823 $ 0.30823 $ 0.30823 $ 0.30823 BTU Factor: All CCF 1.03 $ 1.03259 $ 1.03259 $ 1.03259 Revenue from Rate $ 10,401,709 $ 10,401,709 $ 10,640,948 $ 10,885,690 Change from Previous 10,401,709 0.0% 2.3% 2.3% Residential dollar impacts of customers at various usage levels Monthly $ Change by Usage All CCF Year 1 Year 2 Year 3 10 $ 1.12 $ 1.40 $ 1.41 15 $ 0.93 $ 1.35 $ 1.36 20 $ 0.74 $ 1.31 $ 1.32 25 $ 0.55 $ 1.26 $ 1.27 30 $ 0.36 $ 1.21 $ 1.23 35 $ 0.17 $ 1.16 $ 1.18 40 $ (0.02) $ 1.11 $ 1.14 45 $ (0.20) $ 1.06 $ 1.09 50 $ (0.39) $ 1.01 $ 1.05 55 $ (0.58) $ 0.96 $ 1.00 UFS Proposal for Hutchinson Utilities Commission P a g e 1 21 UTILITY FINANCIAL WTIIC)N , LL . Review of Power Cost Adjustment and F u � Cost Adjustiment Power cost adjustments (PCA) and fuel cost adjustments (FCA) are used by many municipal electric utilities to help ensure power and fuel costs are recovered from customers in a timely fashion and the electric utility remains financially stable. These adjustments reduce the utility's risk and exposure to changes in power supply costs, fuel costs, or changes in transmission charges and helps ensure retail customers are not over or undercharged for electricity in any given year. A PCA and FCA has to be implemented properly to ensure dramatic changes in the adjustments do not occur on a month to month basis leading to customer complaints. UFS has implemented and reviewed both PCAs and FCAs for electric utilities around the nation and internationally and has extensive experience in identifying the most appropriate method that balances customer impacts while maintaining the financial health of the utility. UFS will review the risks and monthly power cost to identify the most appropriate method. Listed below are general methods used by utilities. (A number of variations of each method also exists) Monthly (Quarterly, Semi Annual) - Typically calculated each month or period of time such as quarterly. This methodology tends to result in dramatic changes in the PCA at the time of the true up and may result in increased complaints from customers. Annual - The power costs are trued -up each year and significant changes can occur at the beginning of each year. Also, the Utility has to maintain significant reserves to provide funds to cover the fluctuations in the power costs. Rolling average - Tends to smooth out the fluctuations while maintaining the financial integrity of the utility. Costs are reviewed each month with small changes occurring with the goal of balancing power costs at the end of specific period of time such as 12 months. Forecasted Monthly Review - Based on the annual budget then adjusted monthly to reflect actual power supply costs UFS Proposal for Hutchinson Utilities Commission P a g e 1 22 UTILITY FINANCIAL 'C)LUUTIIN', LL. Rein w ll If;;;InIr ........... Net IMeteirillrn and it Cost The growth of customer installed Photovoltaic (PV) may result in under -recovering the utilities' fixed costs due to inappropriately structured residential rates. Many utilities face the following residential rate structure issues: • Customer charges have historically been held low • Many states require net metering customers with renewables rather than pricing on avoided costs • Inverted block rate structures that shift fixed cost recovery to outer rate blocks • Metering and billing limitations • Historical practices of recovering fixed costs in the energy component of the rate These issues have resulted in unstable revenue recovery and under -recovery of costs from customers installing distributed generation. This also causes cost shifts and subsidies. The current rate structures may artificially over -value or under -value distributed generation. The graph on the next page shows fixed and variable recovery for a typical residential customer using 798 kWh's per month. 120 Ma 7100.00 '8OX0 $60,010 $40,00 a.o Typical Residential Suimmer Customer (Average monthly co nsumpticnin = 798 kWh's) Costs Revenue If the customer installed a 5kW PV generator producing 700 kWh's (Estimated production from a 5kW PV) the billed energy consumption is reduced to less than 100 kWh's. When the Utility applies its current rates to the remaining usage the revenues recovered from the customer are approximately $23.00, however, the cost to provide electricity to the customer is $45.00. This occurs because residential rate structures do not align with costs. UFS Proposal for Hutchinson Utilities Commission P a g e 1 23 UTILITY FINANCIAL LL MI N' , Lt L . soM 4 ,00 40.00 35.00 3,0.E 25 0M 15M t0 5M Typical Ree s deenitial hummer Customer Installation of SkW PV fists Revenue For this utility the under -recovery occurs because distribution costs should be recovered through a demand charge and customer charges rather than through the energy (kWh) charge. A variety of difficulties and limitations exist to correct the rate structure, although some can be easily corrected. They include: • Limitation on metering & billing systems • Education of the governing body & customers • Opposition from interveners and special interest groups • Past practices in rate designs • Incorrect price signals sent by certain Joint Action Agencies UFs Proposal for Hutchinson Utilities Commission P a g e 1 24 UTILITY FINANCIAL OWTIION'q' , LL . Meetings, Reports and Deliverables Meetings The following meetings are anticipated for electric and gas by conference call and/or webex: • Initial meeting — Clarify scope of services and, expectations of management • Fieldwork — Fieldwork will be conducted to verify data • Review draft reports with management • Presentation as requested by management such as review report with Governing body Format of Reports UFS reports are typically separated into two reports listed below. Separate reports will be issued for each utility. • Executive Summary Report — An overview that identifies the objectives, process and results of the rate study in a clear and concise format, the report includes graphs, charts, tables and recommendations. • Rate Design Recommendation Report —The rate design report includes the following: • Comparison of the current and proposed rates • Expected revenues generated from proposed rates • Impact on customer classes at various usage levels or load factors within each rate class Presentation of Cost of Service and Rate Design Study A critical aspect of the study is the clear and concise presentation to the governing body of the utility. UFS professionals are skilled at explaining and working with advisory and governing bodies to ensure decisions are based on information they can understand and apply to their community. UFS Proposal for Hutchinson Utilities Commission P a g e 1 25 UTILITY IFIINAINI IIAL WTII INN' , LL . Firm Qualifications Quallifications I ntlrodu tlion UFS has a long standing relationship since 2001 in assisting municipalities with cost of service and financial analysis for Electric utilities and are recognized experts in the utility field. Our group and the project team assigned to this engagement is composed of highly qualified, experienced, and knowledgeable professionals who remain current on all issues facing utilities. UFS' reputation has resulted in an industry leading status shown by our frequent request to instruct classes and speak at conferences around the nation, the number of rate studies we have completed. UFS provides consulting services to assist publicly -owned utilities in meeting their strategic and financial objectives. Services are designed to ensure complete client satisfaction and a commitment that: • Services will be completed in the agreed upon timeframe • Services are delivered within budget for services requested • Services provided will meet or exceed client expectations • Services will be unbiased and independent recommendations provided to the utility The Project Manager for HUC will be Mark Beauchamp, CPA, CMA, MBA, Dan Kasbohm, Manager, and staff as listed in this proposal. The resume of each individual is included in the resume section below. This section includes: 1. A summary of our experience and qualifications 2. Electric Projects completed in past 36 months 3. Name of Contact Person for UFS 4. Proposed Team Members and Locations 5. Resumes of UFS personnel Our experience and commitment to publicly -owned utilities ensures that we understand the issues they face and can assist in providing a variety of services including: • Electric cost of service and rate design • Review of indirect cost allocations • Fee and ancillary service charges • Benchmarking analysis for utilities • Financial analysis and feasibility studies for offering telecommunication services • Evaluating and developing policies and procedures • Econometric forecasts of sales and load growth • Power supply negotiation and financial analysis UFS Proposal for Hutchinson Utilities Commission P a g e 1 26 UTILITY IFIINAIr I IAL LUVTIIC)N , LtL . Summary O ,ulliifitiion and Experience Industry Leading Status Utility Financial Solutions, LLC (UFS) are recognized experts in the utility field assisting electric utilities with cost of service and financial analysis. UFS is an industry leader and frequently requested to teach classes and present at electric utility conferences around the nation. Training for Utility Management and Governing Bodies UFS teaches a series of cost of service, rate design and financial training courses for utility management and governing bodies through American Public Power (APPA) education institutes, on -site training, and webinars. We are instructors for their training courses to assist with their certification program. Additionally, UFS teaches Water Cost of Service and Rate Design for EUCI who is an industry leader in conferences and courses around the nation. Training for Utility Staff UFS personnel are the instructors on cost of service and financial planning courses offered through the American Public Power Association (APPA) and the National Association of Regulatory Utility Commissioners (NARUC). These courses include the following: • Basic Cost of Service • Intermediate Cost of Service • Advanced Cost of Service • Financial Planning • Utility Financial Check-up • Cost of Service and Rate Design for Distributed Generation • Development of Line Extension Policies • Rate Structures to promote Energy Conservation • Rate Structures to create Revenue Stability • Advanced issues in Rate Design • Advanced issues in Cost Allocations Conference Presentations UFS staff are frequently requested to present special topics at regional conferences around the nation including the APPA's National Conference, Educational Institutes, E&O Workshop and the Business and Financial Workshop. A sample of recent presentations are listed below: • Development of Avoided Cost and Rate Designs for Distributed Generation • Appropriate levels of Contributions to City (Payment in lieu of Tax) • Information provided by Cost of Service Studies • Cash Reserve Policies for Electric Utilities • Development of Utility Extension Policies • Development of Key Financial Targets • Cost of Service Challenges and Solutions UFS' industry leading status has allowed us to present courses on distributed generation to the US Department of Energy and provide them with proper pricing methods to recover costs and promote renewable generation. UFS Proposal for Hutchinson Utilities Commission P a g e 1 27 UTILITY IFIINAIr I IIAL LUVTII N , LtL . Quality Control Proper quality control and management includes help ensure the accomplished work is in alignment with the project scope, is completed timely, within budget and the results are accurate and defensible. UFS implements several quality controls to achieve these desired goals, including a three -level review of the financial projection, cost of service studies and that rate designs achieve the desired revenue requirements. The quality controls developed by UFS are specific to utility rate studies and are based on our prior experience working with electric utilities in the USA, Guam, the Caribbean and Canada. All portions of our studies include the following at a minimum: 1. Development of a detailed work plan based on scope of services and discussion with management 2. Establish work plan with projected milestones and timelines 3. Proof and Balance historical usage, expenses, and revenues with audited financial statements 4. Compare UFS financial projections with utility budgets 5. Review by Project Manager of projections and cost of service study 6. Review by UFS President or Vice -President of study results 7. Presentation of results by UFS with Utility Staff prior to finalizing study Timeliness of Studies Part of the quality control includes the timely completion of the rate studies. UFS experience in completing studies provides us the ability to complete the studies as requested and discussed in the initial kick-off conference call. Experience: UFS extensive experience includes completion of rate studies in 43 states, including STATE and Guam, the Caribbean and Canada. We have worked with small utilities as well as some of the largest public power systems around the Country. A small sample includes: Nashville TN, Rochester MN, Danville VA, Naperville IL, Cedar Falls Iowa, Palo Alto CA, and Imperial Irrigation District. UFS works with the utilities' governing bodies to obtain rate approvals and develops rates to assist utilities in meeting the community's objectives. We have become the nation's leader in rate development and a sample of some of our services is listed below: • Development of power cost adjustments • Time of use rates • Economic Development Rates • Standby rates • Distributed Generation Rates • Line extension policies • Street lighting rates • Combining or expanding rate classes UFS Proposal for Hutchinson Utilities Commission P a g e 1 28 UTILITY FIINAIr I IAL LUVTIIC)N , LtL . Financial Strength UFS commenced business in 2001 and has the highest financial rating by Dunn and Bradstreet. Independence UFS maintains its independence throughout its engagements to help ensure unbiased recommendations to the governing bodies. We do not provide services that could impair our independence such as engineering, accounting, or auditing services. UFS only provides financial services related to Financial Planning, Cost of Service and Rate Designs for Utilities. Diversity of UFS Staff The proper development of rate study requires knowledge in accounting, finance, economics and engineering. Utility staff has diverse backgrounds that include degrees in accounting (CPA), engineering, finance, economics and information technology. Similar Past Studies UFS has completed electric and gas cost of service studies for several utilities around the nation of similar scope of services. UFS client lists are proprietary and cannot be shared. Name and title of primary contact person Dan Kasbohm Manager, Utility Financial Solutions, LLC E-mail - dkasbohm@ufsweb.com Cell - (616) 402-7045 Date firm established - UFS was established in September 2001 Proposed service team including titles and responsibilities Mark Beauchamp - President - General management and review Dawn Lund — Vice President — General management and review Mike Johnson —Manager - Project management and analysis Chris Lund — Business and Technology Manager - Project management and analysis Joan Bakenhus — Senior Financial Analyst — Data entry and analysis Jillian Beauchamp — Financial Analyst — Data entry and analysis Robert Blank — Financial Analyst — Data entry and analysis Carolyn Ragusett — Administrative Assistant - Clerical UFS Proposal for Hutchinson Utilities Commission P a g e 1 29 UTILITY IFIINAIr I IIAL LCUTII N , LL . Project Team Qualifications Proposed ed 'team Imeimber UFS has put together a project team with the knowledge and experience to successfully meet your requirements and to deliver the report by the agreed upon time -frame. The team has over 100 years of combined experience performing similar studies for utilities. This provides HUC with the experience to creatively solve financial and operational issues and help ensure financial stability in future years. The project team assigned has three team members located in Michigan plus support services out of Wisconsin and Nebraska. This team has completed cost of service, financial plans, and rate design studies in 43 states, Guam, and the Caribbean. Main Office and Contact, authorized to negotiate and Authorized to negotiate and bind contract: bind contract: Title: President Title: Vice President Mark Beauchamp Dawn Lund 185 Sun Meadow Court P. O. Box 582 Holland MI 49424 Leland, MI 49654 Industry Experience since 1981 Industry Experience since 1996 Phone 616-393-9722 Fax 888-566-4430 Fax 888-501-0998 Cell 231-218-9664 Cell 616-403-5450 dlund@ufsweb.com mbeauchamp@ufsweb.com Title: Manager Title: Manager Dan Kasbohm Mike Johnson 14986 Sandstone Road 4901 Hermsmeier Road Grand Haven, MI 49417 Madison, WI 53714 Industry Experience since 2008 Industry Experience since 1995 Cell 616-402-7045 Phone 608-230-5849 Fax 888-499-6609 Fax 888-809-9640 dkasbohm@ufsweb.com Cell 608-609-6279 mjohnson@ufsweb.com UFS Proposal for Hutchinson Utilities Commission P a g e 1 30 Mark Beauchamp CPA,CMA,MBA President & Project Manager Dawn Lund Vice -President & Financial Manager Joan Bakenhus 7MKikeJohnson Dan Kasbohm7��' ris LundlBiBililliBI &Technology Senior Financial Analystnager Manageranager Lillian Jurczyk Financial Analyst Carolyn Ragusett Admin Assistant Robert Blank Financial Analyst Staff Availability UFS has adequate staff available to complete the tasks in the timeline requested in the RFP. 5i1IYiP"ps The next section consists of resumes of the team members assigned to this engagement. UFS Proposal for Hutchinson Utilities Commission P a g e 1 31 UTILITY FINANCIAL WTIIO N' , LL . Mark Beauchamp, CPA, CMA, MBA President, Utility Financial Solutions, LLC Email: mbeauchamp@ufsweb.com Cellular: 616-403-5450 Location: Holland, MI FA.—tinn • AAS Water Purification Technology • ABA Business Administration • BBA Major —Accounting • MBA Master's Degree in Business Course Instructor American Public Power Association (APPA) • Advanced Cost of Service Course (Cash Basis & Utility Basis of Ratemaking) • Intermediate Cost of Service (Cash Basis & Utility Basis of Ratemaking) • Basic Cost of Service (Cash Basis and Utility Basis of Ratemaking) • Financial Planning for Municipal Utilities • Financial Planning for Board & Councils • Financial Planning and Rate Setting for Managers (Part of Managers Certificate Program) American Municipal Power (AMP) • Financial Planning and Rate Designs for Electric Utilities Expert Witness Service • Detroit Edison vs. Ameritech — Provided expert witness services for Detroit Edison on development of Pole Attachment Rates for Ameritech • Nebraska State Unicameral —Served as an expert witness before the state of Nebraska Unicameral on Proper rate setting and credits to provide customer installed renewable generation • Dayton Power & Light — Provided expert witness services on pole attachment rates. Case was resolved prior to Court appearance • Coldwater Board of Public Works — Provide expert witness services on rate challenge by large industrial customer. Case was dropped after deposition was provided • Smethport PA —Provided deposition and responses to Pennsylvania Public Service Commission on Rate Filing for Smethport License and Qualifications • Class "A" license in wastewater treatment from the State of Michigan • (CPA) Certified Public Accountant — Wisconsin • (CMA) Certified Management Accountant — Institute Certified Management Accountants Course Instructor Michigan State University • Advanced Issues in Cost Allocation (Utility Basis of Rate Making) • Retail Costing and Pricing of Electricity • Wholesale Costing and Pricing of Electricity Southwest American Water Works Association Michigan Rural Water Association • Cost of Service & Rate Making for Water Utilities Michigan Finance Government Officers Association • Cost of Service & Rate Making for Water & Wastewater Utilities Industry Involvement • Member of the American Public Power Association • Member of the American Water Works Association • Member of the Institute of Management Accountants • Speaker at national conferences on Financial Planning for Municipal Utilities, Pricing for Water Utilities, Pricing Fiber Optic backbone systems, Unbundling Electric Rates, and Ways to Attract and Retain Customers • Author of articles appearing in national magazines and newsletters regarding pricing fiber optics, training electric rates, and designing water rates UFS Proposal for Hutchinson Utilities Commission P a g e 1 32 UTILITY IFIINAIr I IIAL WTII N , LtLO. Dawn Lund Vice -President, Utility Financial Solutions, LLC Dawn has utility energy experience pricing and marketing utility services for electric, water and wastewater beginning in 1996. Dawn has worked with UFS since 2006 and previously worked with a large utility and held positions as Cost and Rate Specialist and Marketing and Communications Specialist. Dawn works with utilities across the country teaching financial concepts and is also the instructor for Financial Planning courses for the American Public Power Association. She is also a regularly requested speaker for various regional and national organizations. Email: dlund@ufsweb.com Cellular: 231-218-9664 Location: Traverse City, MI Cost of Service (COS) • Completed electric water and wastewater cost of service and rate design studies for utilities across the country, Guam and the Caribbean • Determining appropriate allocations of overhead costs between utility services Long-term financial analysis • Development of long-term sales and expense projections for electric, water, and wastewater utilities • Development of long-term financial plan and rate track for electric, water, and wastewater Presentation/Training • Presentations to City Councils and Boards for approval of utility rates and proposed rate tracks • Instructor for APPA's Financial Planning courses • Monthly presentations to various organizations on topics such as: financial planning, key financial targets, cash policies and how to explain rate increases to the end user, cost of services challenges/solutions, and Introduction to allocation studies Rate Design • Development of electric rate designs to meet financial and social objectives of utility • Development of special rates for electric utilities including Net Metering, Economic Development and Time of Use Other Utility Tools • Development of power (fuel) cost adjustments for electric utilities • Development of connection charges for water and wastewater utilities • Review and recommend changes to ordinances related to utility operations • Development of fees for utility services • Business plan development for telecommunications and pricing of fiber services to customers • Determining high strength surcharge rates for wastewater treatment plants consistent with EPA requirements • Development of marketing plans for utilities • Experienced in pricing electric line extension fees and system development charges UFS Proposal for Hutchinson Utilities Commission P a g e 1 33 UTILITY FIINAIr I IIAL WTIIC)N , LtLO. Mike Johnson Manager, Utility Financial Solutions, LLC Mike joined Utility Financial Solutions, LLC in 2011 and has experience assisting utilities since 1995. He has a Higher National Diploma in Mechatronics (Combined Electrical/Mechanical Engineering). Mike is experienced in cost of service, rate making, financial/operational modeling, automation, electric utility operations, and power supply. Email: mjohnson@ufsweb.com Cellular: 608-230-5849 Location: Madison, WI rnct of Gprvirp • Development of cost of service studies for electric, communication, gas, water and Wastewater utilities • Forecasts utility revenue requirements • Cost allocation model development Rate Design • Provides cost of services class allocations and rate making • Designs time of use rates • Identify effects for different usage patterns within the same class • Development of rates for alternative fuels and vehicles • Evaluate marginal costs and development of line extension policies and economic development rates Expert Witness Services • Prepared and testified on filings to Public Utility Commission Long Term Financial Analysis • Develops utility financial analysis models • Identifies growth and load forecasting • Models rate and revenue effect for customer change within utilities (loss of customers/additional load) • Develops target metrics for utilities including cash policies, operating income, debt coverage Other Utility Tools • Computes cost functionalization and allocation systems for designing and managing complex changes • Evaluates data and system integration issues associated with new software implementations • Provides market analysis, bidding and settlement processes analysis • Identification and valuation of fixed assets • Assessment of utility value for sales/purchase • Development of risk mitigation tools, power/fuel cost adjustment mechanisms UFS Proposal for Hutchinson Utilities Commission P a g e 1 34 UTILITY FINANCIAL WTIIC)N , LtLO. Dan Kasbohm Manager, Utility Financial Solutions, LLC Dan joined Utility Financial Solutions, LLC in 2007 and has experience in conducting cost of service and financial analysis for electric, water, wastewater, and cable utilities around the nation. He has a Bachelor of Science degree in Engineering and was employed in the automotive industry. Dan is a co - instructor for the Basic and Intermediate Cost of Service courses for the American Public Power Association. u Email: dkasbohm@ufsweb.com Cellular: 616-402-7045 Location: Grand Haven, MI Cost of Service (COS) • Identification of fixed/variable costs related to: — Customer availability to be served — Commodity based costs — Demand based costs • Identification of class to class subsidization • Utility cost breakdown by function • Detailed cost unbundling Long-term financial analysis & identification of: • Utility revenue requirements (utility and cash based methods) • Debt Coverage conformance • Minimum cash requirements • Optimal operating income targets • Optional rate adjustments in projected years Presentation/Training • Presenting study results to management and governing body of utility • Provide utility training on use of projection & COS models • Co -Instructor for the American Public Power Association Academy — Basic & Intermediate Cost of Service Rate Design • Current Utility rate structure updates — Utility revenue impact — Customer bill impacts at various usage levels — Identify revenue stability of rates — Rate survey analysis • Development of new rates including: — Time of Use (seasonal, daily, hourly) — Power Cost Adjustment (PCA) — Coincidental -Peak Rates — Economic Development rates — Street lighting rates Other Utility Tools • Power Cost Adjustment mechanisms based on utility cash position, objectives and dispatch profile • Street Light Cost of Service by light and pole types • Load Profile Analysis to identify utility and customer usage patterns • Power supply forecasting • Implementation of a justified minimum cash policy • Calculation of fees for standard utility work • Development of line extension policies UFS Proposal for Hutchinson Utilities Commission P a g e 1 35 UTILITY FIINAIr I IIAL LUVTIIC)N , LtLO. Joan Bakenhus Senior Financial Analyst, Utility Financial Solutions, LLC Joan has experience working with municipal utilities from 1986-1996 and came back to industry in 2006. Joan has a degree in Business Administration. Joan has worked as a Rate Analyst for one of the largest public power systems in the nation (Lincoln Electric System) and for Utility Financial Solutions, LLC since 2006. Joan is experienced in development of S long-term financial plans, rate design models and cost of service studies for / electric, water, and wastewater utilities. t;< Email: jbakenhus@ufsweb.com Cellular: 402-483-2542 Location: Nebraska Cost of Service (COS) • Working with Utilities to identify information requirements to complete cost of service and financial plans • Set up and develop utility revenue requirements, cost of service program and utility revenue proof • Balancing and set up of models for development of cost of service for water, wastewater and electric utilities to determine commodity and customer charges • Responsible for analysis, preparation and updating cost of service models for several electric, water utilities Long Term Financial Analysis • Development of long-term financial forecasts for water, wastewater, and electric utilities to determine the amount and timing of rate adjustments Rate Design • Balancing and set up of models for development rate design for water, wastewater and electric utilities to determine commodity and customer charges • Development of rate design models for electric, Water utilities • Development of rate surveys Other Utilitv Tools • Balancing of sales with revenue to help ensure proper billing statistics are used in cost of service models UFS Proposal for Hutchinson Utilities Commission P a g e 1 36 UTILITY FINANCIAL LUVTII N , LtLC. Chris Lund Business &Technology Manager, Utility Financial Solutions, LLC Chris has a bachelor's degree in Business Administration with concentration in Computer Science and Speech Communications. He has been a technology and management consultant since 1992 and has utility experience since 2005. Chris is an employee of UFS since 2012 and has also sub -consulted on a variety of technology projects for UFS since 2003. Email: clund@ufsweb.com Cellular: 231-342-9798 Location: Traverse City, MI Financial Consulting • Completed cost of service and rate design studies for electric, water, wastewater, telecommunications and refuse utilities • Designed, wrote and implemented long term financial projection model including revenue requirements and rate track • Determined avoided cost for solar (photovoltaic - PV) and wind for renewable energy rates • Lead consultant for electric vehicle (EV) rates and service study • Conducted multiple fiber optic cost of service and rate design studies • Presentations to City Councils and Boards for approval of utility rates and proposed rate tracks Data Analytics • Data mining and analysis specialist for electric load data research • Specialist with data mining, data conversion and custom reporting • Experienced with various ODBC (database connectivity) • Implemented job costing solution for manufacturing companies • Designed, written, implemented, supported multiple, custom bar coding and data collection systems for wholesale distribution and manufacturing organizations • Data collection systems pushed data to payroll for time and attendance, automated inventory tracking and job costing Technology Experience • Experienced in Microsoft Excel automation — including payroll data, job costing and automated billing (office automation) • Experienced in Microsoft Access custom database, programming and reporting — including electronic data interchange (EDI) mapping using Microsoft VBA • Lead consultant for multiple mission critical, corporate wide enterprise resource planning (ERP) technology solutions • Implemented, trained and supported multiple telecommunications projects • Implemented and supported some of the first voice over internet protocol (VOIP) telecommuting systems • Guide management with technology related strategy and business integration • Modification and complete custom program solutions on midrange and PC • Wrote automated bill of material (BOM) purchasing forecasting system • Specify, install and maintain mission critical PC network infrastructure, servers, workstation and related software • Experienced in network security and virtual private network (VPN) technology • Implemented and supported web storefronts integrated with corporate backend database solution for inventory management, order processing, billing and account status UFS Proposal for Hutchinson Utilities Commission P a g e 1 37 UTILITY FINANCIAL LLJ7II0N'q', LtL. Jillian Jurczyk, MEc. Financial Analyst, Utility Financial Solutions, LLC Jill has been with UFS since 2013. She has a Bachelor's degree in Mathematics and a Master's degree in Applied Economics from Johns Hopkins University. Jill has populated and analyzed cost of service models, developed long-term financial projections, and designed rates for utilities. Jill specializes in a �I econometric modeling and statistical analysis to project sales and usage. She has worked with a variety of econometric software packages and is competent in handling seasonality, trend, heteroscedasticity, and other economic inefficiencies that arise in data analysis. E-mail: jjurczyk@ufsweb.com Cellular: 616-283-8502 Location: Holland, MI Jill's experience included: • Forecasting Utility revenue requirements • Projecting revenues and expenses, asset depreciation, and net book value • Designing rates based on Cost of Service results • Analyzing rate payer impacts and sensitivities • Working with Utility Staff to identify study goals and understand organization • Keeping up to date on the current economic impacts of renewable energy, the relationship to the Clean Power Plan legislation, and potential effects on the Electric Industry Robert Blank Financial Analyst, Utility Financial Solutions, LLC Robert has been working for Utility Financial Solutions, LLC since May of 2014 and has a Bachelor of Business Administration with a major in Finance from Davenport University. Over his time at UFS he has conducted Utility rate surveys as well as developed rate designs. Robert has experience with long term financial projections and cost of service studies for Electric, Water, Wastewater, and Gas utilities. y�. E-mail: bblank@ufsweb.com Cellular: 616-403-9926 Location: Holland, MI Robert's experience includes: • Developing rate design models for electric utilities • Conducting Rate Surveys • Responsible for analysis of financial statements and preparation of cost of service models • Working with utilities to identify the information needed to conduct an accurate cost of service study • Calculating Minimum Cash Reserve levels, Target Operating Income, and Debt Coverage Ratios UFS Proposal for Hutchinson Utilities Commission P a g e 1 38 FUSSOWTIONS, U T I L:II'T IF II A1f�#IC II A L LLC. Carolyn Ragusett Administrative Assistant, Utility Financial Solutions, LLC Carolyn has been working for Utility Financial Solutions, LLC since May 2018 and has 47 years of office industry experience. For 27 years Carolyn was the Office Administrator for a large accounting firm in Wisconsin where she supervised office support staff. She additionally served 9 years as the tax department IL administrative officer and maintained the tax library. E-mail: cragusett@ufsweb.com Cellular: 920-450-0577 Location: Neenah, WI Carolyn is skilled in the following: • Managing and organizing workflow scheduling • Performance reviews • Office support and coordinating office activities • Client correspondence • Billing, Invoicing, and Collections • Communication Review of office correspondence and materials • Valuation Reports UFS Proposal for Hutchinson Utilities Commission P a g e 1 39 FUSSOWTIONS, UTILIIT" IF IIN'�NA1r~dI IIAL Lt L . References Austin Utilities, Minnesota Client Contact: Ann Christianson, Finance Manager 01D Phone 507-433-8886 U Email: annc@austinutilities.com AUS III 11114, UTILITIES Study Overview From 2012 to present, UFS has performed the following for Austin Utilities: Study Specifics • Electric cost of service and rate design • Gas cost of service and rate design • Asset review • Water cost of service and rate design • Street light cost of service • Long-term financial projections • Allocation study • Time of use analysis • Interruptible rate analysis • Gas commercial rate definition • Line extension study Brainerd Public Utilities, Minnesota Client Contact: Todd Wicklund, Finance Director Phone 218-825-3220 Email: twick1unclg1-)frru org Study Overview From 2012 through current, UFS has performed the following for Brainerd Public Utilities: • Electric, water, and wastewater cost of service studies • Long term financial projections • Hydro analysis • Solar rate credit • Bonding options • Economic development rate, large customer economic rate • Contribution margin analysis • Line extension study • Solar avoided cost calculation • Large customer rate design UFS Proposal for Hutchinson Utilities Commission P a g e 140 �"" UTnLIIT'� IF11NA1r�dI IIAL. Knoxville Utilities Board, Knoxville, Tennessee Client Contact: Sherri Ottinger, Manager, Rates & Analytical Service Phone: 865-594-7274 Email: sherri.ottinger@kub.org Study Overview UFS completed the gas, electric, water, and wastewater cost of service models for Knoxville Utilities Board between 2017 and 2019. UFS recently completed development of residential demand and time of use pilot rates for all customer classes (September 2019). Electric & Gas Study Specifics • Analysis of Residential and Commercial customer classes • Analysis of "non-standard" customers with pass through power supply cost or pass through gas supply cost o Non-standard customers were Primary served o Allocations reflected in Cost of Service • Accounted for a reclassification of non-standard customers during cost of service analysis that took place through the power provider in the interim year • Data analytics on electric and gas usage patterns for use in the cost of service models • UFS provided on -site Cost of Service training • UFS staff worked closely with KUB staff on assistance with model throughout the project • Incorporated wholesale gas rates for services to governmental units outside the city of Knoxville • UFS reviewed each portion of the studies with KUB staff using a web -based application • UFS and KUB staff worked closely on design of electric and natural gas rates including development of a PILOT residential time of use rate • UFS provided responses to intervenors on rate recommendations Water & Wastewater Study Specifics • Analysis of residential, non-residential, and wholesale users • Analysis of private fire protection • Analysis of hydrants and unmetered government services • Analysis of sewer improvement charge • Using revenue requirements, develop cost allocation factors for each utility and review the cost of service allocations/results • Identify cost by meter size and commodify rate by customer class • Develop rate design alternatives for consideration • A draft report was presented via WebEx to Staff for comment • The final report on the cost of service study, including discussion and analysis was provided UFS Proposal for Hutchinson Utilities Commission P a g e 141 UFS IT IF11NA1r�#ICIIAL Cedar Falls Utilities, Iowa Client Contact: Wynette Froehner, Finance Director Phone: 319-268-5209 (a Email: wynette.froehner@cfunet.net Cedar Falls Utilities Study Overview UFS completed cost of service studies in 2013, 2017 and 2020 for gas, electric, water, and wastewater for Cedar Falls Utilities Electric Study Specifics • Five-year financial projection to determine revenue requirements, identify financial targets, identify long-term rate track • Review current ECA methodology • Develop a cost -of -service study to identify the comparison of cost to provide services to each customer class, identify potential new rate classes, transportation and distribution delivery charges, power supply charges. • Evaluate current time of use rate structure • Review solar and net -metering charges • Review non-profit rates and justification • One-year rate design • Rate survey • Reports and presentation to governing body Gas & Water Study Specifics • Five-year financial projection for each utility to determine revenue requirements, identify financial targets, and develop long-term rate track • Develop a cost -of -service study to identify the comparison of cost to provide services to each customer class, identify potential new rate classes, identify monthly customer charges, transportation delivery charges (gas), distribution delivery charges (water/gas), supply charges (gas), seasonality of costs • One-year rate design for each utility • Identify overall rate impacts on customers • Reports and presentation to governing body UFS Proposal for Hutchinson Utilities Commission P a g e 142 FUSSOW711ONS, TILIIT' IF II A1NICIIAL LL. Kennett Utilities, Missouri Client Contact: David W. Wilkins Superintendent of Utilities Phone: 573-888-5366 Email: davidwilkins@clgw.org J to IMP 41J Study Overview UFS completed an electric, gas, water, wastewater, and telecommunications cost of service, financial plan, and rate design study for Kennett Utilities in 2015 and updated in 2018. Electric & Gas Study Specifics • Five-year financial projection to determine revenue requirements, identify financial targets, identify long-term rate track • Review current PCA methodology • Develop a cost of service study to identify the comparison of cost to provide services to each customer class, identify potential new rate classes, transmission and distribution delivery charges, power supply charges • Three-year rate design • Rate survey of state utilities • Reports and presentation to governing body • Review of Power Factor Penalty calculation and parameters • Data analytics on electric and gas usage patterns for use in the cost of service models • UFS staff worked closely with staff on assistance with model throughout the project • UFS reviewed each portion of the studies with staff using a web -based application Water, Wastewater, & Telecommunications Study Specifics • Five-year financial projection to determine revenue requirements, identify financial targets, identify long-term rate track • Analysis of residential, non-residential customers • Analysis of private fire protection • Analysis of hydrants and unmetered government services • Analysis of sewer improvement charge • Using revenue requirements, develop cost allocation factors for each utility and review the cost of service allocations/results • Identify cost by meter size and commodify rate by customer class • Develop rate design alternatives for consideration • A draft report was presented via WebEx to Staff for comment • The final report on the cost of service study, including discussion and analysis was provided Study Specifics for All Utilities • Analysis of adequacy of revenue levels to provide adequate cash flow for expenses, debt service, transfers, and reserves • Review definition of existing rate classes • Cost -of -Service analysis, to determine the required contribution of each rate class to overall revenues • Recommendations of necessary rate changes to provide equitable allocation of costs to classes and to customers within a class, and to achieve the desired level of revenue overall • Provide a rate structure that generates sufficient revenue to maintain the utility in a favorable financial condition • Propose rate structures that are easy for the customer to understand and simple for the utility to apply UFS Proposal for Hutchinson Utilities Commission P a g e 143 UTILITY FINANCIAL SLLJ7IINS, LtL. Project Schedule Our experience with municipal cost of service and rate design studies, allows us to conduct a cost effective and efficient study. The following is the tentative project schedule for completion of the cost of service and rate design. This schedule will be finalized during the initial project kick-off meeting with management. Task Expected Completion — Twelve Weeks Initial Meeting — Preparation of Information Request Completion of Information Request by Client Planning/Set-up Study Review and Development of Revenue Requirements Fieldwork Cost of Service Analysis Component/Functional Costs Cost based Rate Design and alternatives Report, Recommendations & Presentation of Draft Final Report Week One Week Two —Three Week Four — Six Week Seven — Nine Week Ten Week Eleven —Twelve Week Thirteen — Fourteen Week Fifteen Week Sixteen THE COMPLETION OF THE PROJECT ON THE PROPOSED SCHEDULE IS DEPENDENT ON THE COOPERATION OF VARIOUS DEPARTMENTS WITHIN HUC TO PREPARE THE INFORMATION REQUEST IN A TIMELY MANNER. UFS Proposal for Hutchinson Utilities Commission P a g e 144 UTILITY IFIINAINICIIAL SOLUTIONS, LLC. Project Fees Prices, terms, and conditions are good for a period of 90 days from this proposal date of April 7, 2022. Payment will be made through submission of invoice which itemizes the work performed. Pricing does not include on -site or travel expenses. Pricing assumes projects will be sourced and conducted together, add 20% if projects are sourced individually. Pricing by Utility Electric Cost of Service, Financial Projection, and Rate Design Gas Cost of Service, Financial Projection, and Rate Design Total Pricing if projects are combined: Out of Scope Services Out of Scope services will be billed at the hourly rates listed below. Any out of pocket expenses will be billed at cost. Name Title Hourly Rate Mark Beauchamp President $330.00 Dawn Lund Vice President $290.00 Dan Kasbohm Manager $255.00 Mike Johnson Manager $255.00 Chris Lund Business and Technology Manager $255.00 Jillian Jurczyk Financial Analyst $175.00 Joan Bakenhus Senior Financial Analyst $155.00 Robert Blank Financial Analyst $120.00 In addition, travel time will be billed at 50% off regular rates. $ 21,000 $ 15,800 $36,800 UFS Proposal for Hutchinson Utilities Commission P a g e 145 UTILITY FINANCIAL LUVTIIC)N , LtLO. Proposed Professional Services Agreement Prices, terms, and conditions are good for a period of 90 days from this proposal date of April 7, 2022. Payment will be made through submission of invoice which itemizes the work performed. Total project fees for Scope of Services are $36,800 Optional Pricing: One onsite presentation included; additional presentations - $2,000* (*Total above does not include out of pocket travel expenses or travel time) Anticipated Meetings: Deliverables (for each utility): Initial meeting — Conference call to clarify 1) Long-term financial projection and rate track scope of services, expectations of 2) Cost of Service Analysis management and preliminary information 3) Minimum cash reserve determination request 4) Debt Service Ratio 5) Target operating income (rate of return) Fieldwork —Conference call to verify 6) One year rate design and revenue proof data provided Draft Report with management - Conference call Final Report with management — Conference call Hourly Rates (travel is discounted at 5016) Mark Beauchamp $ 330.00 Dawn Lund $ 290.00 Dan Kasbohm Mike Johnson Chris Lund Jillian Jurczyk Joan Bakenhus Support Staff $ 255.00 $ 255.00 $ 255.00 $ 175.00 $ 155.00 $ 65.00 — 120.00 Out of Scope Pricing A. Additional one-year electric rate design $ 3,300 B. Additional one-year gas rate design $ 1,900 C. Onsite Meetings, any requested onsite presentation will be billed $2,000 plus out of pocket travel expenses billed at cost for flight ticket, auto rental, hotel, meals, parking, and mileage. All costs incurred from schedule changes initiated by client after booking will be considered out of pocket. Any additional out of scope items and work hours will be billed at the hourly rates listed on this page We look forward to exceeding your expectations. Please sign, date, and return to clund@ufsweb.com at your earliest convenience. Sincerely, �'X `` ` Date: Mark Beauchamp, CPA, MBA, CMA President, Utility Financial Solutions, LLC Accepted By: Hutchinson Utilities Commission UFS Proposal for Hutchinson Utilities Commission P a g e 146 HUTCHINSON UTILITIES COMMISSION��` Board Action Form �r�turscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: Approve Disposing of Surplus Assets Plant 1 Presenter: Mike Gabrielson Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments': No BACKGROUND/EXPLANATION OFAGENDA ITEM: Unit # 3 Worthington - The Unit has been decommissioned Unit # 4 Worthington - The Unit has been decommissioned Unit # 8 GE Turbine - The Unit has been decommissioned 12,000 Gallons of Diesel and a 24,000 Gallon fuel tank - Diesel fuel and tank are no longer needed at the plant, I would like approval for disposing of surplus assets BOARD ACTION REQUESTED: Approving disposing of Surplus Assets 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: Approve Requisition 009144 to Purchase a Replacement for Truck 130 Presenter: John Webster Agenda Item Type: Time Requested (Minutes): 1 Attachments: BACKGROUND/EXPLANATION OFAGENDA ITEM: In compliance with the 2020 Fleet Management Program the Natural Gas Division is to replace vehicle #130. The vehicle to be replaced is a 2011 Chevrolet Silverado 2500 HD 44 cab and chassis with a utility body. The replacement cab and chassis that is being recommended by Hutchinson Utilities is a 2022/23 GMC Sierra 3500, SRW, 44, Crew Cab, Cab and Chassis. State Bid Contract No. 199799 Release No. T-642 The total calculated price for this vehicle is subject to change once the prices are announced for the 2023 vehicles, hopefully in late May of this year. GMC is taking orders on a limited quantity of vehicles for production. Therefore, HUC felt it was prudent to enter into a contract with GMC for production. BOARD ACTION REQUESTED: Approval of requisition 008286 Fiscal impact: $46,361.25 + Tax Included in current budget: Budget Change: No PROJECT SECTION: Total Project Cost: $75,190 Remaining Cost: $28,828.75 PURCHASE REQUISITION NUT�N� HUTCHINSON UTILITIES COMMISSION Date Requisition No. UT1L1TIES 225 MICHIGAN ST SE Commission HUTCHINSON MN 55350 04/21/2022 �09144 Phone:320-587-4746 Fax:320-587-4721 NORTH COUNTRY GM 1502 E HOWARD STREET HIBBING, MN 55746 Note: Description: 2023 Cab & Chassis TW Item Part No. Description No. TK30943, 2022/23 GMC SIERRA 3500, SRW, - 4X4, CREW CAB, W/8 FT BOX, GVW 11,500. 3.73:1 AXLE RATIO STANDARD QF6, L275/70R-18E ALL TERRAIN TIRES - STANDARD EXTERIOR COLOR - GAZ, STANDARD WHITE INTERIOR - H1T, BLACK CLOTH TRIM 1 CONTRACT NUMBER 169931. iQUOTATION FROM BOB O'HARA STATE BID CONTRACT # 199799 RELEASE # T-642 MFG. PART: ISLE, SLE PACKAGE - 2 MFG. PART. JA50, BUCKET SEATS W/CONSOLE - 3 MFG. PART: LP5, ENGINE, DURAMAX 6.6L TURBO -DIESEL - V8, B20 DIESEL COMPATIBLE (445 HP @ 2800 RPM, 910 LB -FT OF TORQUE @ 1600 RPM),. INCLUDES (K05) ENGINE BLOCK HEATER. 4 MGM, TRANSMISSION, ALLISON 10-SPEED AUTOMATIC (INCLUDED AND ONLY AVAILABLE WITH (L5P) DURAMAX 6.6L TURBO -DIESEL V8 ENGINE. MFG. PART: Required by: Requested by: JWebster Qty u' Unit G Due Date I Unit Price I Ext. Am 1.00 1 EA a 12/17/2022 1I $31,920.400 1I $31,920.40 1.00 1 EA 112/17/2022 1.00 1 EA 112/17/2022 1 1.00 I EA 112/17/2022 $3,891.0001 $3,891.00 $479.6001$479.60 $8,703.200 1 $8,703.20 Date Printed: 04/22/2022 Requisitioned By: JWebster Page: 1/3 HUTCHINSON PURCHASE REQUISITION Date Requisition No. r HUTCHINSON UTILITIES COMMISSION UTILITIES 225 MICHIGAN ST SE 04/21/2022 009144 m i commission HUTCHINSON, MN 55350 Phone:320-587-4746 Fax:320-587-4721 NORTH COUNTRY GM 1502 E HOWARD STREET HIBBING, MN 55746 Note: Description: 2023 Cab & Chassis TW Required by: Requested by: JWebster Item No. Part No. Description Qty Unit Due Date ZW9, BOX DELETE, INCLUDES CAPPED FUEL - FILL, (SFW) BACK-UP ALARM CALIBRATION, 5 (9J4) REAR BUMPER DELETE, (91-3) SPARE 1.00 EA 12/17/2022 TIRE DELETE AND SPARE TIRE CARRIER DELETE. MFG. PART. VYU, SNOW PLOW PREP PACKAGE - INCLUDES (KW5) 220-AMP ALTERNATOR, INCLUDES INCREASED FRONT GAWR ON 6 HEAVY DUTY MODELS, (NZZ) SKID PLATES 1.00 EA 12/17/2022 (TRANSFER CASE AND OIL PAN), PASS THROUGH DASH GROMMET HOLE AND ROOF EMERGENCY LIGHT PROVISIONS. MFG. PART: CHROME ASSIST STEPS - JVXJ, MFG. PART: 1 7 1.00 EA 12/17/2022 8 E itf 11 MFG PART: v--.... K4B, AUXILIARY R MFG. PART: AUTO TRAC 4X4 - KC9, 120 VOLT OUTLET IN CAB - MFG. PART: 91-7, UPFITTER SWITCHED - MFG. PART: 1.00 II EA 112/17/2022 1.00 1 EA f 12/17/2022 1.00 1 EA f 12/17/2022 1.00 1 EA 1112/17/2022 Unit Price IIExt. Amount $(1,016.400)1 $(1,016.40) $264.0001 $264.00 $660.0001 $660.00 $176.0001 $176.00 $118.800 1 $118.80 $198.000 1 $198.00 $132.000 1 $132.00 Date Printed: 04/22/2022 Requisitioned By: JWebster Page: 2/3 r',` HUTCHINSON UTILITIES wr c4mmission NORTH COUNTRY GM 1502 E HOWARD STREET HIBBING, MN 55746 Note: Description: 2023 Cab & Chassis TW PURCHASE REQUISITION HUTCHINSON UTILITIES COMMISSION 225 MICHIGAN ST SE HUTCHINSON, MN 55350 Phone:320-587-4746 Fax:320-587-4721 Date Requisition No. 04/21/2022 009144 Required by: � y• Requested b . q ebster Item Part No. Description Qty Unit Due Date Unit Price Ext. Amount No. U01, ROOF MARKER LIGHTS - 12 MFG. PART: 1.00 EA 12/17/2022 $48.400 $48.40 DLR1, REMOTE START - 13 MFG. PART: 1.00 EA 12/17/2022 $445.000 $445.00 ADDITIONAL KEY/FOB COMBINATION - MFG. PART: 14 1.00 EA 12/17/2022 $177.000 $177.00 LICENSE, TITLE, REGISTRATION, TRANSIT - TAX MFG. 15 PART: 1.00 EA 12/17/2022 $164.250 $164.25 Total: 46,361.25 Date Printed: 04/22/2022 Requisitioned By: JWebster Page: 3/3 - 1 QUOTATION NORTH COUNTRY G 1502 E HOWARD ST CONTRACT # 168931 HIBBING, MN 55746 218-263-7578 BOB O'HARA EST DELIVERY TIME 218-263-7576 218-349-8955 90 -120 ARO rwohara0 oh(@aol.com .... 1(@ao1.com GTR-30 BASE MODEL 2022 GMC SIERRA 3500 SRW TK30943 $ 31,920.40 4X4 CREW CAB w/ 8 FT BOX GVW 11,500 3,891.00 ISLE PKG SLE x $3,891.00 479.60 BUCKET SEATS w/CONSOLE ASO x $479.60 ADDED OPTIONS 6.6L V8 L8T X STD 6 SPEED AUTO MYD X STD 3.73:1 AXLE RATIO GT4 X STD Engine, Duramax 6.61- Turbo -Diesel V8, B20-Diesel compatible (445 hp [332 kW] @ 2800 rpm, 910 lb-ft of torque [1220 Nm] @ 1600 rpm) 8,703.20 (Requires (JL1) Trailer brake LP5 x $8,703.20 controller. Regular Cab models requires (PCI) Convenience Package or (ZLQ) Fleet Convenience Package. Includes (K05) engine block heater.) Transmission, Allison 10-speed automatic (Included and only STD w/DIESEL available with (1-51P) Duramax 6.61- MGM x STD w/DIESEL Turbo -Diesel V8 engine. Not available with (PTO) Power take -off.) Gooseneck / 5th Wheel Package includes (Z6A) Gooseneck / 5th Wheel Prep Package. (Regular Cab 1,201.20 models require (PCI) Convenience CMT - Package or (ZLQ) Fleet Convenience Package. Includes (JL1) Trailer brake controller and (CGN) spray -on bed liner. AIR CONDITIONING FRT STD STD CHROME BUMPERS X STD Box Delete includes capped fuel fill, (SFW) Back-up alarm calibration, (9J4) rear bumper (1,016.40) delete, (91-3) spare tire delete ZW9 X -$1,016.40 and spare tire carrier delete.(Requires long bed model.)*CREDIT* Fleet Convenience Package includes (AQQ) Remote Keyless Entry, (K34) cruise control, (QT5) EZ Lift power lock and release tailgate 668.00 and (DBG) outside power -adjustable ZLQ - vertical trailering with heated upper glass (Not available with (PCI) Convenience Package or (QK2) GMC MultiPro Tailgate. STD LT275/70R-18E ALL TERRAIN QF6 x STD 334.60 Spare Tire w/ZW9 only ZYQ - 88.00 BLOCK NEATER K05 - 242.00 BRAKE CONTROLLER JL1 v Snow Plow Prep Package includes (KW5) 220-amp alternator, includes increased front GAWR on Heavy Duty models, (NZZ) skid plates (transfer case and oil pan), pass 264.00 through dash grommet hole and VYU x $264.00 roof emergency light provisions. (Requires 4WD model and includes (KW5) 220-amp alternator and is upgradeable to (KHF) Dual alternators (220-amp primary, 170- amp auxiliary). 176.00 DEEP TINTED REAR GLASS AKO - 660.00 CHROME ASSIST STEPS VXJ x $660.00 479.60 SPRAY BEDLINER CGN - 176.00 DASH SWITCH AUTO TRAC 4X4 NQH x $176.00 118.80 AUX BATTERY K4B X $118.80 198.00 BOVOLT OUTLET IN CAB AND KC9 x $198.00 UPFITTER SWITCHED (kit shipped 132.00 ra additional upfitferwiring) 9L7 x $132.00Ioose 48.40 ROOF MARKER LIGHTS U01 x $48.40 198.00 REAR WINDOW DEFROSTER C49 - 121.40 BACKUP ALARM 8S3 - 445.00 REMOTE START DLR1 x $445.00 264.00 118"ALLUMINUM WHEELS PH D - 177.00 ADDITIONAL KEY/FOB COMB EA 0 x $ 177.00 EXT COLOR STD WHITE GAZ STD INT TRIM COLOR BLACK CLOTH TRIM HIT STD TOTAL $ 46,197.00 3,002.81 6.5% SALES TAX x $ 3,002.81 144.25 LICENCE TITLE & REG x $ 144.25 20.00 TRANSIT TAX x $ 20.00 TOTAL per UNIT $ 49,364.06 QTY 1 $ 49,364.06 purchase order number contact MATT MAIERS customer HUTCHINSON UTILITIES phone 320)583-4916 email mmamierhutchinsomm&ov billing address delivery address date ordered order # HUTCHINSON UTILITIES COMMISSION��` Board Action Form �r�turscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: Approve Requisition 009145 to Purchase a Replacement for Truck 948 Presenter: John Webster Agenda Item Type: Time Requested (Minutes): 1 Attachments: BACKGROUND/EXPLANATION OFAGENDA ITEM: In compliance with the 2020 Fleet Management Program the Natural Gas Division is to replace vehicle #948. The vehicle to be replaced is a 2010 Chevrolet Silverado 2500 HD 44 cab and chassis with a utility body. The replacement cab and chassis that is being recommended by Hutchinson Utilities is a 2022/23 GMC Sierra 3500, SRW, 44, Crew Cab, Cab and Chassis. State Bid Contract No. 199799 Release No. T-642 The total calculated price for this vehicle is subject to change once the prices are announced for the 2023 vehicles, hopefully in late May of this year. GMC is taking orders on a limited quantity of vehicles for production. Therefore, HUC felt it was prudent to enter into a contract with GMC for production. BOARD ACTION REQUESTED: Approval of requisition 008286 Fiscal impact: $37,746.05 + Tax Included in current budget: Budget Change: No PROJECT SECTION: Total Project Cost: $75,948.00 Remaining Cost: $38,201.95 HUTCHINSON UTILITIES NORTH COUNTRY GM 1502 E HOWARD STREET HIBBING, MN 55746 Note: Description: 2023 Cab & Chassis JC PURCHASE REQUISITION HUTCHINSON UTILITIES COMMISSION 225 MICHIGAN ST SE HUTCHINSON, MN 55350 Phone:320-587-4746 Fax:320-587-4721 Date Requisition No. 04/21/2022 009145 Required by: Requested by: JWebster Item Part No. No. Description Qty Unit Due Date Unit Price Ext. Amount TK30943, 2022/23 GMC SIERRA 3500, SRW, - 4X4, CREW CAB, W/8 FT BOX, GVW 11,500. 6.61- V8 - STD 6 SPEED AUTO TRANSMISSION - STD 3.73:1 AXLE RATIO - STD QF6, L275/70R-18E ALL TERRAIN TIRES - TD EXTERIOR COLOR - GAZ, STANDARD WHITE INTERIOR - H1T, BLACK CLOTH TRIM 1 1.00 EA 12/17/2022 $31,920.400 $31,920.40 CONTRACT NUMBER - 168931 QUOTATION FROM BOB O'HARA STATE BID CONTRACT NUMBER 199799 RELEASE NUMBER T-642 MFG. PART: SLE, SLE PACKAGE - 2 MFG. PART: 1.00 EA 12/17/2022 $3,891.000 $3,891.00 A50, BUCKET SEATS W/CONSOLE - 3 MFG. PART: 1.00 EA 12/17/2022 $479.600 $479.60 ZW9, BOX DELETE, INCLUDES CAPPED FUEL - FILL, (SFW) BACK-UP ALARM CALIBRATION, 4 (9J4) REAR BUMPER DELETE, (91-3) SPARE 1.00 EA 12/17/2022 $(1,016.400) $(1,016.40) TIRE DELETE AND SPARE TIRE CARRIER DELETE. MFG. PART: K05, BLOCK HEATER- 5 MFG. PART: 1.00 EA 12/17/2022 $88.000 $88.00 Date Printed: 04/22/2022 Requisitioned By: JWebster Page: 1/3 HUTCHINSON UTILITIES NORTH COUNTRY GM 1502 E HOWARD STREET HIBBING, MN 55746 Note: Description: 2023 Cab & Chassis JC PURCHASE REQUISITION HUTCHINSON UTILITIES COMMISSION 225 MICHIGAN ST SE HUTCHINSON, MN 55350 Phone:320-587-4746 Fax:320-587-4721 Date Requisition No. 04/21/2022 009145 Required by: Requested by: JWebster Item:: No. Part No. Description Qty Unit Due Date Unit Price Ext. Amount VYU, SNOW PLOW PREP PACKAGE - INCLUDES (KW5) 220-AMP ALTERNATOR, INCLUDES INCREASED FRONT GAWR ON 6 HEAVY DUTY MODELS, (NZZ) SKID PLATES 1.00 EA 12/17/2022 $264.000 $264,00 (TRANSFER CASE AND OIL PAN), PASS THROUGH DASH GROMMET HOLE AND ROOF EMERGENCY LIGHT PROVISIONS. MFG. PART: VXJ, CHROME ASSIST STEPS - 7 MFG. PART: 1.00 EA 12/17/2022 $660.000 $660.00 NQH, DASH SWITCH AUTO TRAC 4X4 - 8 MFG. PART: 1.00 EA 12/17/2022 $176.000 $176.00 K4B, AUXILIARY BATTERY - 9 MFG. PART: 1.00 EA 12/17/2022 $118.800 $118.80 KC9„ '120, VOLT OUTLET IN CAB - 10 MFG. PART: 1.00 EA 12/17/2022 $198.000 $198.00 91-7, UPFITTER SWITCHED - 11 MFG. PART: 1.00 EA 12/17/2022 $132.000 $132.00 U01, ROOF MARKER LIGHTS - 12 MFG. PART: 1.00 EA 12/17/2022 $48.400 $48.40 DLR1, REMOTE START - 13 MFG. PART: 1.00 EA 12/17/2022 $445.000 $445.00 Date Printed: 04/22/2022 Requisitioned By: JWebster Page: 2/3 << �, HUTCHINSON UTILITIES yamCommission NORTH COUNTRY GM 1502 E HOWARD STREET HIBBING, MN 55746 Note: Description: 2023 Cab & Chassis JC PURCHASE REQUISITION HUTCHINSON UTILITIES COMMISSION 225 MICHIGAN ST SE HUTCHINSON, MN 55350 Phone:320-587-4746 Fax:320-587-4721 W Date Requisition No. 04/21/2022 009145 Required by: Requested by: JWebster Item No. Part No. Description City Unit Due Date Unit Price Ext. Amount ADDITIONAL KEY/FOB COMBINATION - 14 MFG. PART: 1.00 EA 12/17/2022 $177.000 $177.00 LICENSE, TITLE, REGISTRATION AND - 15 TRANSIT TAX 1.00 EA 12/17/2022 $164.250 $164.25 MFG. PART: Total: 37,746.05 Date Printed: 04/22/2022 Requisitioned By: JWebster Page: 3/3 rfm _%5 Luc QUOTATION NORTH COUNTRY G 1502 E HOWARD ST CONTRACT # 168931 HIBBING, MN 55746 218-263-7578 BOB O'HARA EST DELIVERY TIME 218-263-7576 218-349-8955 90 -120 ARO rwohara0l aol.com GTR-30 BASE MODEL 2022 GMC SIERRA 3500 SRW TK30943 $ 31,920.40 4X4 CREW CAB w/ 8 FT BOX GVW 11,500 3,891.00 SLE PKG SLE x $3,891.00 479.60 BUCKET SEATS w/CONSOLE A50 x $479.60 ADDED OPTIONS 6.6L V8 L8T X STD 6 SPEED AUTO MYD X STD 3.73:1 AXLE RATIO GT4 X STD Engine, Duramax 6.61- Turbo -Diesel V8, B20-Diesel compatible (445 hp [332 kW] @ 2800 rpm, 910 lb-ft of torque [1220 Nm] @ 1600 rpm) 8,703.20 (Requires (JL1) Trailer brake LP5 - controller. Regular Cab models requires (PCI) Convenience Package', or (ZLQ) Fleet Convenience Package. Includes (K05) engine block heater.) Transmission, Allison 10-speed automatic (Included and only STD w/DIESEL available with (1_51P) Duramax 6.61- MGM - Turbo -Diesel V8 engine. Not available with (PTO) Power take -off.) Gooseneck / 5th Wheel Package includes (Z6A) Gooseneck / 5th Wheel Prep Package. (Regular Cab 1,201.20 models require (PCI) Convenience CMT - Package or (ZLQ) Fleet Convenience Package. Includes (JL1) Trailer brake controller and (CGN) spray -on bed liner. AIR CONDITIONING FRT STD STD CHROME BUMPERS X STD Box Delete includes capped fuel fill, (SFW) Back-up alarm calibration, (9J4) rear bumper (1,016.40) delete, (91-3) spare tire delete ZW9 X -$1,016.40 and spare tire carrier delete.(Requires long bed model.)�*CREDIT'' Fleet Convenience Package includes (AQQ) Remote Keyless Entry, (K34) cruise control, (QT5) EZ Lift power lock and release tailgate 668.00 and (DBG) outside power -adjustable ZLQ - vertical trailering with heated upper glass (Not available with (PCI) Convenience Package or (QK2) GMC MultiPro Tailgate. STD LT275/70R-18E ALL TERRAIN QF6 x STD 334.60 Spare Tire w/ZW9 only ZYQ - 88.00 BLOCK HEATER K05 X $88.00 242.00 BRAKE CONTROLLER JL1 - Snow Plow Prep Package includes (KW5) 220-amp alternator, includes increased front GAWR on Heavy Duty models, (NZZ) skid plates (transfer case and oil pan), pass 264.00 through dash grommet hole and VYU x $264.00 roof emergency light provisions. (Requires 4WD model and includes (KW5) 220-amp alternator and is upgradeable to (KHF) Dual alternators (220-amp primary, 170- amp auxiliary). 176.00 DEEP TINTED REAR GLASS AKO - 660.00 CHROME ASSIST STEPS VXJ x $660.00 479.60 SPRAY BEDLINER CGN - 176.00 ,DASH SWITCH AUTO TRAC 4X4 NQH x $176.00 118.80 AUX BATTERY K4B X $118r80 198.00 BOVOLT OUTLET IN CAB AND KC9 x $198.00 132.00 UPFITTER SWITCHED (kit shipped x $132.00 loose, req additional upfitter wiring)48.40 k9L7 ROOF MARKER LIGHTS x $48.40 198.00 REAR WINDOW DEFROSTER - 121.40 1BACKUPALARM 8S3 - 445.00 ,REMOTE START DLR1 x $445.00 264.00 18"ALLUM/NUM WHEELS PHD - 177.00 ADDITIONAL KEY/FOB COMB EA 0 x $ � 177 000 EXT COLOR STD WHITE GAZ STD INT TRIM COLOR BLACK CLOTH TRIM HIT STD TOTAL $ 37,581.80 2,442.82 6.5% SALES TAX x $ 2,442.82 144.25 LICENCE TITLE & REG x $ 144.25 20.00 TRANSIT TAX x $ 20.00 TAL per UNIT $ 40,188.87 FEEEEE Eac,Y 1 $ 40,188.87 purchase order number contact MATT MAIERS customer HUTCHINSON UTILITIES phone 320) 583-4916 email 'mwmwawierhutchinsomm�.ov billing address delivery address date ordered order #