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11-23-2022 HUCM Special MeetingMINUTES Special Meeting — Hutchinson Utilities Commission, Wednesday, November 23, 2022 Call to order — 2:00 p.m. President Matt Cheney called the meeting to order. Members, present: President Matt Cheney; Vice President Anthony Hanson; Secretary Don Martinez; Comimissioner Robert Wendorff; Commissioner Kathy Silvemale; GM jeremy Carter; Attorney Marc Sebora �%Iw I f6 Radke G,M Carter thanked the Commissioners for coming and noted that these are preliminary budget numbers and the Commissioners will have 4 weeks to review before: final budget numbers need' to be approved. GM Carter stated that MI'SO did approve the substation, which, will start in the next 3-5 years. Discussion was held on past project approvals, front loaded Cap X projects, and the flexibility of moving projects if needed. GM carter presented HUC's 2023 preliminary budget, which is the same format as, previous years but a few more g,raphs have been added. GM Carter highlighted for m a M a or. RIZIRN I# LRLOI 114 rqpj a 5101^91215 :1111:11:111EXTYMISER removal/replacement; which is a carryover from 2022, $30K for Plant 1 Louver Brick replacement and $40K for Solar Land lease agreement were also highlighted. GM Carter reviewed the pictorial graphs of the Electric Division Expenses. After discussion of the Electric Division preliminary, budget, GM Carter gave an, overview of the Natural Gas Division. Retail Customer Sales has an increase of $317K and shows a 13% increase in forecasted Retail MCF's sold. Contract Sales of 3M and HTI/TDK show an increase in revenue of $833K. GM Carter highlighted Other Revenues of $2.6M; which, are made up, of N.U/HCP/UFC/UNG Transport/Reservation Fees of $1.4M,, Electric Division Transportation Fees of $719K, Bond Premiums of $186K, Customer Charges of $56K, Interest Income of $250K and Brownton & HCP operation/maintenance Agreement of $33K. GM' Carter concluded by reviewing the pictorial graphs and expense budget highlights of the Natural Gas Division, GM Carter noted that the Retail Customer Gas purchases show an increase of the $337K, Contracted Customers Gas purchases increase of $738K, PILOT 2% increase of $111 111 K and Additional Operating Expenses of $200K for Engineering Cost for PHIVISA's New Programs, and $40K for Transmission ROW Maintenance and Painting. Discussion was held on what was driving the increase in operating expenses along with any research of prices softening in the future. GIVI Carter looked' to the Commission for question's, concerns or comments on the 2023 Budget Presentation. There were no concerns from the Commissioners. UK031#11 101 EV.111 It--1Q41 I L*ff*U4FAWJFA ORO I MEA141111,A]l :1;99��� ATTEST: LA2 A �A, "'Ivi, Matt Cheney, President K 15-on Martine, Secretary