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02-22-2023 HUCCPHUTCHINSON UTILITIES COMMISSION AGENDA REGULAR MEETING February 22, 2023 3:00 p.m. 1. CONFLICT OF INTEREST 2. APPROVE CONSENT AGENDA a. Approve Minutes b. Ratify Payment of Bills 3. APPROVE FINANCIAL STATEMENTS 4. OPEN FORUM 5. COMMUNICATION a. City Administrator b. Divisions C. Human Resources d. Legal e. General Manager 6. POLICIES a. Review Policies i. Section 2 of Exempt Handbook ii. Section 2 of Non -Exempt Handbook b. Approve Changes i. Hiring — Exempt and Non -Exempt ii. Probationary Period Upon Hiring — Exempt iii. Membership/Dues/Conventions — Exempt iv. Data Practices Advisory — Exempt and Non -Exempt v. Complaint/Grievance Procedure — Exempt vi. Safety Glasses — Non -Exempt 7. UNFINISHED BUSINESS 8. NEW BUSINESS a. Review 2022 Distributed Energy Resources Generation Report b. Approve Req#009438 — Hutchinson Substation 115kV Rebuild to DGR Engineer C. Approve Req#009439 — Plant 2 Fabrication of Ladder and Platforms d. Approve Req#009440 — Plant 2 Installation of Ladder and Platforms e. Approve GE LM6000 Contract 9. ADJOURN MINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, January 25, 2023 Call to order — 3:00 p.m. President Matt Cheney called the meeting to order. Members present: President Matt Cheney; Secretary Don Martinez; Commissioner Robert Wendorff; Commissioner Kathy Silvernale; GM Jeremy Carter; Attorney Marc Sebora Absent: Vice President Anthony Hanson Attorney Marc Sebora re -appointed Matt Cheney to the Hutchinson Utilities Commission Board. Conflict of Interest 2. Commission Reorganization a. A motion made by Commissioner Martinez, second by Commissioner Wendorff to elect Anthony Hanson to the position of President. Motion carried unanimously. b. A motion made by Commissioner Wendorff, second by Commissioner Silvernale to elect Matt Cheney to the position of Vice President. Motion carried unanimously. c. A motion made by Commissioner Silvernale, second by Commissioner Wendorff to re-elect Don Martinez to the position of Secretary. Motion carried unanimously. d. A motion made by Commissioner Martinez, second by Commissioner Wendorff to re -appoint Marc Sebora as legal counsel. Motion carried unanimously. e. A motion made by Commissioner Wendorff, second by Commissioner Silvernale re -appoint Angie Radke as recording secretary. Motion carried unanimously. A motion made by Commissioner Martinez, second by Commissioner Silvernale to designate Citizens Bank & Trust, Wells Fargo Bank, Wells Fargo Advisors, Home State Bank, Morgan Stanley and Cetera Investment Services as depositories for utility funds. Motion carried unanimously. 3. Approve Consent Agenda a. Approve Minutes b. Ratify Payment of Bills Motion by Commissioner Silvernale, second by Commissioner Wendorff to Approve the Consent Agenda. Motion carried unanimously. 4. Approve Financial Statements Mr. Martig presented the Financial Statements. December Financials are always difficult to compare to previous years due to GASB and other year-end entries. Salaries and Benefits had a large 2022 December due to Year End GASB entry for PERA liabilities which decreased expensed in 2021 and accrued sick and vacation increased in 2022. Another year-end entry that is required is a market to market adjustment to adjust the value of HUC investments. GM Carter expanded on the market to market adjustments on the investments. Market to market adjustments have not been this high since 2008. GM Carter reviewed the consumption for both the electric and gas divisions. Motion by Commissioner Martinez, second by Commissioner Silvernale to Approve the Financial Statements. Motion carried unanimously. 5. Open Forum 6. Communication a. City Administrator —Matthew Jaunich — i. Welcomed new Council Member, Tim Burley along with new Public Works Director, Mike Stifter b. Divisions i. Dan Lang, Engineering Services Manager — Nothing to report ii. Dave Hunstad, Electric Transmission/Distribution Manager — Nothing to report iii. Mike Gabrielson, Production Manager — 1. Voltage Regulator project on Unit 1 has been completed. iv. John Webster, Natural Gas Division Director — 1. Heartland Corn update v. Jared Martig, Financial Manager- 1. Auditors are here this week 2. Will have Sales Tax audit update next month c. Human Resources — Angie Radke - i. Working on OSHA Logs d. Legal — Marc Sebora — i. Nothing to report e. General Manager — Jeremy Carter i. Business updates were sent out last week. ii. Provided a Legislative update 7. Policies a. Review Policies i. Section 1 of Exempt Handbook ii. Section 1 of Non -Exempt Handbook No changes recommended at this time. 8. Unfinished Business 2 9. New Business a. Review Annual Solar Production Mr. Hunstad presented the Annual Solar Production for 2022. Staff is able to calculate the cost savings from purchasing additional energy from MISO by comparing the actual MISO hourly Locational Marginal Pricing (LMP) with the hourly production of the array. The array generated 1,022,932 KWH with a cost savings of $52,929.01. The array was anticipated to operate at a 14% capacity factor, however for the first full 12 months the array is operating better than expected with a capacity factor of 18.7%. b. Approve Awarding Bid to GE for Oil Leak Repair Services on the LM6000 Mr. Gabrielson presented Approval of Awarding Bid to GE for Oil Leak Repair Services on the LM6000. HUC received one responsible bidder at the December 23, 2022 bid opening. IEM Energy Consultants is recommending several additional technical service bulletins to be completed while the LM6000 is out of service. IEM is not recommending the hot section overall at this time, but will work with HUC Staff to devise a more frequent bore scope inspection program to monitor the portion of the turbine. The total dollar amount referenced in the bid documents is $810,624.28. However, there may be additional unforeseen costs once the unit is taken apart. IEM and HUC through contract negotiation would like to try and cap those costs at no more than an additional 10% above the costs referenced above or through change orders. Motion by Commissioner Martinez, second by Commissioner Wendorff to Approve Awarding Bid to GE for Oil Leak Repair Services on the LM6000. Motion carried unanimously. c. Approve Final Contract Payment to Caterpillar Mr. Gabrielson presented Approval of the Final Contract Payment to Caterpillar. A final retainage payment of 1 % has been withheld from CAT until units 6 & 7 met the Lube Oil consumption parameters agreed upon in the original contract. Upon initial set-up, the units did not meet the original Lube Oil parameters requiring CAT to rebuild the units to meet on -going standards agreed upon. Following the rebuild, consumption tests were completed with satisfactory results that comply with contract parameters. Staff is recommending to release the final payment to CAT to close the contract. A motion by Commissioner Silvernale, second by Commissioner Wendorff to Approve Final Contract Payment to Caterpillar. Motion carried unanimously. 3 d. Approve Cogeneration and Small Power Production Tariff Mr. Hunstad presented Approval of Cogeneration and Small Power Production Tariff. Municipal Utilities annually shall file for review and approval of a cogeneration and small power production tariff with the governing body. Mr. Hunstad reviewed Schedules 1: For facilities of 40KW or less and Schedule 4: for facilities 40KW — 100KW. A motion by Commissioner Wendorff, second by Commissioner Martinez to Approve Cogeneration and Small Power Production Tariff Filling. Motion carried unanimously. e. Approval of the Pay Equity Report. Ms. Radke presented the consideration of Approval of the Pay Equity Report. HUC is required to submit a pay equity report every three years, and HUC will be reporting for 2022. Staff is happy to report that HUC is in compliance with the state requirements. The attached report must be approved by Hutchinson Utilities Commission and submitted to Minnesota Management and Budget (MMB) Department. The underpayment ratio value of 195.6522 included in Section II of the Compliance Report is above the minimum ratio of 80 that is required to be in compliance. It is requested that the Commission accept and approve the enclosed report before it can be sent to the State by the end of January. A motion by Commissioner Martinez, second by Commissioner Silvernale to Approve the Pay Equity Report. Motion carried unanimously. 9f. Review End of Year Energy Summaries Mr. Lang presented the End of Year Energy Summaries. MISO real time market prices were up 21% from 2021, likely due to higher natural gas prices. HUC contracts natural gas for generation during the summer months and has just locked up additional gas for 2024-2026. Load Duration Curve- doesn't change much since the load is relatively consistent year over year. Generated over 43,000 MWh last year. System Load Graphs — month by month for City of Hutchinson. Comparing 2022 to previous years shows that some of our customers are slowing down. 9g Approve Req#009411 — Phase 2 Cooling Tower Rebuild Plant 1 12 Mr. Gabrielson presented Approval of Req#009411 — Phase 2 Cooling Tower Rebuild Plant 1. Phase 2 consists of replacing the Louver Face and the stairway from the ground to the top. Phase 1 was completed in late Fall and could potentially be up to 4 phases. A motion by Commissioner Silvernale, second by Commissioner Wendorff to Approve Req#009411 — Phase 2 Cooling Tower Rebuild Plant 1. Motion carried unanimously. 10. Adjourn There being no further business, a motion by Commissioner Martinez, second by Commissioner Silvernale to adjourn the meeting at 3:47p.m. Motion carried unanimously. ATTEST: Anthony Hanson, President 5 Don Martinez, Secretary 02/16/2023 10:00 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK Payee DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM O1/21/2023 - 02/17/2023 Description Account Dept Page 1/17 Amount Fund: 1 ELECTRIC O1/23/2023 GEN 1307(E)* MINNESOTA REVENUE STATE SALES TAX 242-000- 00 70,286.00 State Sales Tax 242-000- 00 5,673.00 City Sales Tax 242-000- 00 5,087.00 COUNTY SALES TAX 242-000- 00 5, 087.00 HECK GEN 1307(E) TOTAL FOR FUND 1: 86,133.00 O1/24/2023 GEN 1321(E) MISO Deferred Energy Cost - Miso 174-000- 00 77,435.30 O1/24/2023 GEN 1322(E) MISO Deferred Energy Cost - Miso 174-000- 00 699.68 O1/26/2023 GEN 1315(E)* ALERUS HEALTH INSURANCE 401-926- 08 399.00 O1/31/2023 GEN 1316(E)*4 ALERUS HEALTH CARE - VAN MAREL 242-000- 00 859.46 HEALTH CARE - BURMEISTER 242-000- 00 55.80 HEALTH INSURANCE - CARTER, JJ 401-926- 08 371.01 HECK GEN 1316(E) TOTAL FOR FUND 1: 1,286.27 O1/31/2023 GEN 1317(E) CATERPILLAR POWER GEN SYS, LLC Final Contract Payment to Cat 232-000- 00 91,235.00 O1/31/2023 GEN 1323(E) MISO Deferred Energy Cost - Miso 174-000- 00 62,755.96 O1/31/2023 GEN 1324(E) MISO Deferred Energy Cost - Miso 174-000- 00 725.57 02/01/2023 GEN 1318(E)* GUARDIAN DENTAL INSURANCE-80o ELEC 242-000- 00 3,494.82 DENTAL INSURANCE -COBRA 242-000- 00 457.01 DENTAL INSURANCE-80o ELEC 242-000- 00 3,496.42 DENTAL INSURANCE -COBRA 242-000- 00 475.01 HECK GEN 1318(E) TOTAL FOR FUND 1: 7,923.26 02/03/2023 GEN 1329(E)* CITIZENS BANK Office Supplies 401-921- 08 98.12 02/03/2023 GEN 1330(E)* PAY MENTECH collection - Materials 401-903- 06 2,229.38 02/07/2023 GEN 1325(E) MISO Deferred Energy Cost - Miso 174-000- 00 46,447.64 02/07/2023 GEN 1326(E) MISO Deferred Energy Cost - Miso 174-000- 00 720.88 02/16/2023 10:00 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM O1/21/2023 - 02/17/2023 Payee Description Account Dept Page 2/17 Amount Fund: 1 ELECTRIC 02/09/2023 GEN 7815214 ACE HARDWARE Sales Tax Receivable - Replace 186-000- 00 1.34 Supplies 401-550- 01 164.92 Supplies 401-550- 01 119.40 Supplies 401-550- 01 27.77 Supplies 401-550- 01 37.52 Accessory Plant - Materials 402-554- 01 19.56 Maintenance Other - Materials 402-554- 01 29.91 Maintenance Other - Materials 402-554- 01 26.71 Line - Materials 401-581- 02 7.47 Grounds - Materials 401-935- 08 74.24 HECK GEN 78152 TOTAL FOR FUND 1: 508.84 02/09/2023 GEN 78153* ADAM LANDERS DEP REFUND/APPLIED 235-000- 00 325.00 02/09/2023 GEN 781544 AERODERIVATIVE GAS TURBINE 62216-8 COIL 125/DC ATKOMatic 402-554- 01 500.00 FREIGHT 401-588- 02 94.51 HECK GEN 78154 TOTAL FOR FUND 1: 594.51 02/09/2023 GEN 781554 ALLIED ELECTRONICS INC JUMPER, ALTECH CORP. 470078147 154-000- 00 31.08 CONNECTOR, TERM ELK, FUSE 6.3A,12A, 154-000- 00 40.18 Brady TLS2200 labels 402-554- 01 294.40 HECK GEN 78155 TOTAL FOR FUND 1: 365.66 02/09/2023 GEN 78156* ANDREW BIRKMAIER DEP REFUND/APPLIED 235-000- 00 45.50 02/09/2023 GEN 78157* ASHLEY PLAISANCE DEP REFUND/APPLIED 235-000- 00 195.00 02/09/2023 GEN 78158 ATLAS TOYOTA LIFT OF MINNESOTA Vehicles - Material 402-554- 01 2,170.84 02/09/2023 GEN 781594 AVIATION POWER & MARINE, LLC FILTER (HCU) 154-000- 00 437.75 FREIGHT 401-588- 02 32.56 HECK GEN 78159 TOTAL FOR FUND 1: 470.31 02/16/2023 10:00 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM O1/21/2023 - 02/17/2023 Payee Description Account Dept Page 3/17 Amount Fund: 1 ELECTRIC 02/09/2023 GEN 78161* BIRCHDALE FIRE & SAFETY GROUNDS - OUTSIDE SERVICES 401-935- 08 114.63 02/09/2023 GEN 78162* BONNIE SCHMIDT OR BETH KRUMRIE DEP REFUND/APPLIED 235-000- 00 130.00 02/09/2023 GEN 78163*4 BORDER STATES ELECTRIC SUPPLY Photo Eye twist lock for LED 107-373- 00 593.40 STREETLIGHT, LED COBRA HEAD 154-000- 00 273.47 GROUND ROD, 5/8" X 8, STEEL, BLACKBURN 154-000- 00 137.50 STREETLIGHT, LED COBRA HEAD 154-000- 00 614.48 FLOOD SEAL, COVERS (LONG) FSS 350L 154-000- 00 17.40 BULB, 150W, HIS LU150/55 HIS LAMP 44043 154-000- 00 175.08 CONDUCTOR, 350 MCM 600V URD TRIPLEX 154-000- 00 11,846.00 Sales Tax Receivable - New 186-000- 00 18.80 Sales Tax Receivable - New 186-000- 00 51.70 Sales Tax Receivable - New 186-000- 00 1.22 Sales Tax Receivable - New 186-000- 00 12.72 Sales Tax Receivable - New 186-000- 00 814.54 Sales Tax Receivable - Replace 186-000- 00 40.80 BATTERY, SIZE 9V 401-581- 02 18.12 Street Lighting - Materials 402-596- 02 2,289.48 HECK GEN 78163 TOTAL FOR FUND 1: 16,904.71 02/09/2023 GEN 78164* BRADEN STROOT DEP REFUND/APPLIED 235-000- 00 42.25 02/09/2023 GEN 78165* BRANDON HAUGEN DEP REFUND/APPLIED 235-000- 00 162.50 02/09/2023 GEN 78166* BS&A SOFTWARE It Admin And Support 401-921- 08 936.00 02/09/2023 GEN 781704 CHAMBERLAIN OIL COMPANY INC AERO SHELL TURBINE OIL 500 154-000- 00 3,050.96 Sales Tax Receivable - Replace 186-000- 00 240.25 DRUM DEPOSIT 401-550- 01 20.00 HECK GEN 78170 TOTAL FOR FUND 1: 3,311.21 02/09/2023 GEN 78171* CHRIS MOE OR SUSAN KARJALA DEP REFUND/APPLIED 235-000- 00 22.75 02/16/2023 10:00 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES User: JMartig CHECK DATE FROM O1/21/2023 - 02/17/2023 DE: Hutchinson Utili Check Date Bank Check # Payee Description Fund: 1 ELECTRIC 02/09/2023 GEN 78172* CHRIS MOE OR SUSAN KARJALA DEP REFUND/APPLIED 02/09/2023 GEN 78173*4 CINTAS CORPORATION 4470 Uniforms & Laundry Uniforms & Laundry Uniforms & Laundry UNIFORMS & LAUNDRY UNIFORMS & LAUNDRY UNIFORMS & LAUNDRY HECK GEN 78173 TOTAL FOR FUND 1: 02/09/2023 GEN 78174*4 CITY OF HUTCHINSON VEHICLE/EQUIPMENT FUEL -POWER VEHICLES/EQUIPMENT FUEL-ELEC VEHICLES/EQUIPMENT FUEL-ADMIN 55/45 HECK GEN 78174 TOTAL FOR FUND 1: 02/09/2023 GEN 78175* CONWAY DEUTH & SCHMIESING PLLP MISC SERVICES 02/09/2023 GEN 78176 COOLING TOWER CONTRACTORS STRUCTURES & IMPROVEMENTS (BUI 02/09/2023 GEN 78177* DARLENE MARESCH-OSTROWSKI 02/09/2023 GEN 78178 DARRICK MANSON 02/09/2023 GEN 78179 DESIGN ELECTRIC, INC 02/09/2023 GEN 78180 ELIZABETH HOFFMANN 02/09/2023 GEN 781814 FASTENAL COMPANY DEP REFUND/APPLIED OVERPAYMENTS Maint Power Prod Plant - Build Maint Power Prod Plant - Build Maintenance Other - Materials HECK GEN 78179 TOTAL FOR FUND 1: OVERPAYMENTS Sales Tax Receivable - Replace Generator 41 Material HECK GEN 78181 TOTAL FOR FUND 1: Account Dept 235-000- 00 401-550- 01 401-550- 01 401-550- 01 401-588- 02 401-588- 02 401-588- 02 401-550- 01 401-588- 02 401-935- 08 401-923- 08 235-000- 00 142-000- 00 402-554- 01 402-554- 01 402-554- 01 142-000- 00 186-000- 00 402-554- 01 Page 4/17 Amount 35.75 533.53 533.53 533.53 308.11 308.11 77.82 2,096.08 13,000.00 ** VOIDED ** 81.25 18.04 5.00 9.74 36.91 1.40 21.75 02/16/2023 10:00 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee Fund: 1 ELECTRIC 02/09/2023 GEN 78182 02/09/2023 GEN 78183 02/09/2023 GEN 78184 02/09/2023 GEN 78185 CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM O1/21/2023 - 02/17/2023 Description FERGUSON ENTERPRISES 4525 FOSTER MECHANICAL FREDRICKSON MACHINE REPAIR FS3 INC 02/09/2023 GEN 781864 GOODIN COMPANY 02/09/2023 GEN 78187*4 GOPHER STATE ONE -CALL INC 02/09/2023 GEN 78189* HEATHER BOETTCHER OR HARLEY 02/09/2023 GEN 78190 HELGEMO, MIKE 02/09/2023 GEN 78191*4 HILLYARD/HUTCHINSON 02/09/2023 GEN 78192* HOTSY EQUIPMENT OF MINNESOTA 02/09/2023 GEN 78193* HUTCHFIELD SERVICES 02/09/2023 GEN 78194*4 HUTCHINSON CO-OP Page 5/17 Account Dept Amount VALVE, BALL, PVC, 3/4" 154-000- 00 337.21 Outside Services 402-554- 01 2,488.60 Generator 45 Material 402-554- 01 110.00 Single Reel Trailer 107-392- 00 21,135.99 Title and Registration 107-392- 00 85.00 HECK GEN 78185 TOTAL FOR FUND 1: 21,220.99 KIT, RELIEF REPAIR, 2-1/2" -3" WATTS, 154-000- 00 775.32 Accessory Plant - Materials 402-554- 01 (427.65) FREIGHT 401-588- 02 25.33 HECK GEN 78186 TOTAL FOR FUND 1: 373.00 Line - Materials 401-581- 02 16.67 Line - Materials 401-581- 02 12.83 HECK GEN 78187 TOTAL FOR FUND 1: 29.50 DEP REFUND/APPLIED 235-000- 00 130.00 Meetings & Travel - Expense (S 401-580- 02 209.52 Supplies 401-550- 01 329.67 Grounds - Materials 401-935- 08 72.11 Grounds - Materials 401-935- 08 20.14 HECK GEN 78191 TOTAL FOR FUND 1: 421.92 GROUNDS - OUTSIDE SERVICES 401-935- 08 387.10 Grounds - Outside Services 401-935- 08 1,093.21 Vehicle/Equipment Fuel 401-550- 01 754.91 02/16/2023 10:00 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM O1/21/2023 - 02/17/2023 Payee Description Account Dept Page 6/17 Amount Fund: 1 ELECTRIC 02/09/2023 GEN 78195* HUTCHINSON LEADER Cip - Marketing 401-916- 07 333.00 02/09/2023 GEN 78196*4 HUTCHINSON WHOLESALE SUPPLY CO Vehicles - Material 402-598- 02 37.69 Vehicles - Material 402-598- 02 4.26 Vehicles - Material 402-598- 02 203.05 Power Equipment - Materials 402-598- 02 19.53 Power Equipment - Materials 402-598- 02 34.51 HECK GEN 78196 TOTAL FOR FUND 1: 299.04 02/09/2023 GEN 78197* JEFFREY GORDON GET REFUND/APPLIED 235-000- 00 78.00 02/09/2023 GEN 78198* JILL MANTHEY GET REFUND/APPLIED 235-000- 00 130.00 02/09/2023 GEN 781994 KURITA AMERICA INC TOWER SHIELD, 5173 154-000- 00 3,187.36 Sales Tax Receivable - Replace 186-000- 00 225.62 FREIGHT 401-588- 02 94.36 HECK GEN 78199 TOTAL FOR FUND 1: 3,507.34 02/09/2023 GEN 78200* LISA BAHN GET REFUND/APPLIED 235-000- 00 48.75 02/09/2023 GEN 78201 LOGAN MICHALSON OR KAITLYN OVERPAYMENTS 142-000- 00 54.05 02/09/2023 GEN 78203* MARCO TECHNOLOGIES, LLC OFFICE SUPPLIES 401-921- 08 521.68 02/09/2023 GEN 78204* MARISSA THOMAS GET REFUND/APPLIED 235-000- 00 45.50 02/09/2023 GEN 782054 MATHESON TRI-GAS INC Sales Tax Receivable - Replace 186-000- 00 13.31 Generator 41 Material 402-554- 01 193.60 HECK GEN 78205 TOTAL FOR FUND 1: 206.91 02/09/2023 GEN 78206* MCCOY NYGAARD GET REFUND/APPLIED 235-000- 00 182.00 02/16/2023 10:00 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES User: JMartig CHECK DATE FROM O1/21/2023 - 02/17/2023 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Fund: 1 ELECTRIC 02/09/2023 GEN 782074 MCC ENERGY SOLUTIONS, LLC I AM MANAGEMENT FEES 401-555- 02 IAM USAGE FEES 401-556- 03 HECK GEN 78207 TOTAL FOR FUND 1: 02/09/2023 GEN 78208* MICAELA SMITH DEP REFUND/APPLIED 235-000- 00 02/09/2023 GEN 78209 MIDWEST OVERHEAD CRANE Outside Services 402-554- 01 02/09/2023 GEN 78210 MIDWEST REGION GAS TASK FORCE Dues/Membership Expense 401-930- 08 02/09/2023 GEN 782114 MIRATECH FILTER, BAG, REACTANT 154-000- 00 FREIGHT 401-588- 02 HECK GEN 78211 TOTAL FOR FUND 1: 02/09/2023 GEN 78212 MN DEPT OF LABOR AND INDUSTRY Permits And Rent 401-550- 01 02/09/2023 GEN 78213* MN MUNICIPAL UTILITIES ASSOCIATION DUES/MEMBERSHIP EXPENSE-QTR ELEC DUES 401-930- 08 02/09/2023 GEN 78215* NATHAN MYLLYKANGAS DEP REFUND/APPLIED 235-000- 00 02/09/2023 GEN 78218 NORTHERN STATES SUPPLY INC Supplies 401-550- 01 02/09/2023 GEN 78219* NUVERA TELEPHONE 401-921- 08 02/09/2023 GEN 78220*4 O'REILLY AUTOMOTIVE INC Power Equipment - Materials 402-598- 02 Power Equipment - Materials 402-598- 02 HECK GEN 78220 TOTAL FOR FUND 1: 02/09/2023 GEN 78221*4 OXYGEN SERVICE COMPANY INC Supplies 401-550- 01 Supplies 401-550- 01 HECK GEN 78221 TOTAL FOR FUND 1: 02/09/2023 GEN 78222*4 PRO AUTO & TRANSMISSION REPAIR Vehicle/Equipment Fuel 401-550- 01 Vehicles - Material 402-598- 02 Page 7/17 Amount 3,900.00 3,050.00 6,950.00 221.00 4,179.97 2,000.00 199.60 10.00 8,366.75 201.50 44.11 1,892.96 37.06 63.80 35.58 02/16/2023 10:00 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES User: JMartig CHECK DATE FROM O1/21/2023 - 02/17/2023 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Fund: 1 ELECTRIC Vehicles - Material 402-598- 02 HECK GEN 78222 TOTAL FOR FUND 1: 02/09/2023 GEN 78225* RELIANCE STANDARD LIFE -LIFE LTD INSURANCE-80o ELEC 242-000- 00 LIFE INSURANCE-80o ELEC 242-000- 00 HECK GEN 78225 TOTAL FOR FUND 1: 02/09/2023 GEN 78226*4 RUNNING'S SUPPLY INC Uniforms & Laundry 401-550- 01 Uniforms & Laundry 401-550- 01 Line - Materials 401-581- 02 HECK GEN 78226 TOTAL FOR FUND 1: 02/09/2023 GEN 78227* SAM OR MORGAN SJOBERG DEP REFUND/APPLIED 235-000- 00 02/09/2023 GEN 78228* SANDRA JULIAN DEP REFUND/APPLIED 235-000- 00 02/09/2023 GEN 78229* SHRED RIGHT OFFICE SUPPLIES -SHREDDING SERVICES 401-921- 08 OFFICE SUPPLIES -SHREDDING SERVICES 401-921- 08 HECK GEN 78229 TOTAL FOR FUND 1: 02/09/2023 GEN 78230* STEPHEN KALENBERG DEP REFUND/APPLIED 235-000- 00 02/09/2023 GEN 78231* TAYLOR LEE DEP REFUND/APPLIED 235-000- 00 02/09/2023 GEN 78232 THE HARTFORD Boiler Insurance 401-924- 08 02/09/2023 GEN 78233 TURBINE DIAGNOSTIC SERVICES, INC DECS-250 Upgrade,Install,and Commission 402-554- 01 02/09/2023 GEN 78234* UNITED PARCEL SERVICE MAIL SERVICES - UPS, FEDEX 401-921- 08 02/09/2023 GEN 78235* VARI SALES CORPORATION Office Supplies 401-921- 08 02/09/2023 GEN 78236* VERIZON WIRELESS TELEPHONE 401-921- 08 Page 8/17 Amount 120.20 219.58 1,632.72 1,003.28 2,636.00 559.96 369.97 (49.41) 880.52 136.50 48.75 13.76 15.24 29.00 58.50 143.00 5,604.00 58,509.00 50.00 98.12 1,224.38 02/16/2023 10:00 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM O1/21/2023 - 02/17/2023 Payee Description Account Dept Page 9/17 Amount Fund: 1 ELECTRIC 02/09/2023 GEN 78238* WHITNEY ROOT GET REFUND/APPLIED 235-000- 00 39.00 02/09/2023 GEN 78239* WILLIAM OR JESSICA CARVER GET REFUND/APPLIED 235-000- 00 201.50 02/09/2023 GEN 782424 ZIEGLER POWER SYSTEMS SPARKPLUG, 193468327 154-000- 00 9,960.00 FREIGHT 401-588- 02 14.90 HECK GEN 78242 TOTAL FOR FUND 1: 9,974.90 02/10/2023 GEN 1331(E)* INVOICE CLOUD collection - Materials 401-903- 06 2,397.11 02/14/2023 GEN 1310(E) MISO SCHEDULE 10 401-565- 03 3,036.59 02/14/2023 GEN 1311(E) MISO SCHEDULE 26 401-565- 03 10,212.67 SCHEDULE 26A 401-565- 03 37,852.59 SCHEDULE 26E 401-565- 03 11.52 HECK GEN 1311(E) TOTAL FOR FUND 1: 48,076.78 02/14/2023 GEN 1312(E) MISO SCHEDULE 1 401-565- 03 2,956.44 SCHEDULE 2 401-565- 03 8,719.10 SCHEDULE 10 401-565- 03 511.51 SCHEDULE 26 401-565- 03 1,447.43 SCHEDULE 26A 401-565- 03 0.50 SCHEDULE 26E 401-565- 03 0.11 HECK GEN 1312(E) TOTAL FOR FUND 1: 13,635.09 02/14/2023 GEN 1327(E) MISO Deferred Energy Cost - Miso 174-000- 00 31,162.97 02/14/2023 GEN 1328(E) MISO Deferred Energy Cost - Miso 174-000- 00 726.16 02/16/2023 GEN 1319(E) CREDIT CARD/INTERNET ORDERS PUMP, CHEMICAL, STENNER 4QP107-1 154-000- 00 223.98 Sales Tax Receivable - New 186-000- 00 17.64 HECK GEN 1319(E) TOTAL FOR FUND 1: 241.62 02/16/2023 10:00 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee Fund: 1 ELECTRIC 02/16/2023 GEN 1320(E)*4 VISA CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES Page 10/17 CHECK DATE FROM O1/21/2023 - 02/17/2023 Description Account Dept Amount Sales Tax Receivable - Replace 186-000- 00 8.85 Meetings & Travel - Expense (S 401-546- 01 604.82 Meetings & Travel - Expense (S 401-546- 01 298.71 Meetings & Travel - Expense (S 401-546- 01 1,575.00 Meetings & Travel - Expense (S 401-546- 01 1,943.40 Meetings & Travel - Expense (S 401-546- 01 298.73 Supplies 401-550- 01 44.42 Maint Power Prod Plant - Build 402-554- 01 270.86 Maint Power Prod Plant - Build 402-554- 01 23.12 Maint Power Prod Plant - Build 402-554- 01 29.64 Generator 41 Material 402-554- 01 112.47 Vehicles - Material 402-554- 01 1,639.05 Maintenance Other - Materials 402-554- 01 120.84 Maintenance Other - Materials 402-554- 01 159.07 Training - Expense 401-580- 02 127.81 Training - Expense 401-580- 02 44.70 Line - Materials 401-581- 02 94.92 Line - Materials 401-581- 02 105.72 Telephone 401-921- 08 35.05 Telephone 401-921- 08 46.35 Dues/Membership Expense 401-930- 08 16.17 Grounds - Materials 401-935- 08 7.77 Grounds - Materials 401-935- 08 12.44 Grounds - Materials 401-935- 08 8.40 Grounds - Materials 401-935- 08 7.89 HECK GEN 1320(E) TOTAL FOR FUND 1: 7,636.20 Total for fund 1 ELECTRIC 666,605.97 02/16/2023 10:00 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK Payee DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM O1/21/2023 - 02/17/2023 Description Account Dept Page 11/17 Amount Fund: 2 GAS O1/23/2023 GEN 1307(E)* MINNESOTA REVENUE State Sales Tax 242-000- 00 1,462.00 State Sales Tax 242-000- 00 23,810.00 City Sales Tax 242-000- 00 1,691.00 COUNTY SALES TAX 242-000- 00 1,691.00 HECK GEN 1307(E) TOTAL FOR FUND 2: 28,654.00 O1/26/2023 GEN 1315(E)* ALERUS HEALTH INSURANCE 401-926- 08 133.00 O1/31/2023 GEN 1316(E)*4 ALERUS Health Insurance 401-926- 08 123.66 02/01/2023 GEN 1318(E)* GUARDIAN DENTAL INSURANCE-20o GAS 242-000- 00 873.71 DENTAL INSURANCE-20o GAS 242-000- 00 874.11 HECK GEN 1318(E) TOTAL FOR FUND 2: 1,747.82 02/03/2023 GEN 1329(E)* CITIZENS BANK Office Supplies 401-921- 08 98.11 02/03/2023 GEN 1330(E)* PAY MENTECH collection - Materials 401-903- 06 1,824.03 02/09/2023 GEN 78152*4 ACE HARDWARE Materials 402-892- 04 9.18 Materials 402-892- 04 5.33 Other Equipment - Materials 402-895- 04 49.31 Grounds - Materials 401-935- 08 74.23 HECK GEN 78152 TOTAL FOR FUND 2: 138.05 02/09/2023 GEN 78153* ADAM LANDERS DEP REFUND/APPLIED 235-000- 00 175.00 02/09/2023 GEN 78156* ANDREW BIRKMAIER DEP REFUND/APPLIED 235-000- 00 24.50 02/09/2023 GEN 78157* ASHLEY PLAISANCE DEP REFUND/APPLIED 235-000- 00 105.00 02/09/2023 GEN 78160 BERGUM, CHARLES Cip - Residential 401-916- 07 350.00 02/16/2023 10:00 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES User: JMartig CHECK DATE FROM O1/21/2023 - 02/17/2023 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Fund: 2 GAS 02/09/2023 GEN 78161* BIRCHDALE FIRE & SAFETY GROUNDS - OUTSIDE SERVICES 401-935- 08 02/09/2023 GEN 78162* BONNIE SCHMIDT OR BETH KRUMRIE DEP REFUND/APPLIED 235-000- 00 02/09/2023 GEN 78163*4 BORDER STATES ELECTRIC SUPPLY SERVICES 107-380- 00 SERVICES 107-380- 00 BATTERY, SIZE AA 401-874- 04 Materials 402-892- 04 HECK GEN 78163 TOTAL FOR FUND 2: 02/09/2023 GEN 78164* BRADEN STROOT DEP REFUND/APPLIED 235-000- 00 02/09/2023 GEN 78165* BRANDON HAUGEN DEP REFUND/APPLIED 235-000- 00 02/09/2023 GEN 78166* BS&A SOFTWARE It Admin And Support 401-921- 08 02/09/2023 GEN 78167 CANNON, MIKE Cip - Residential 401-916- 07 02/09/2023 GEN 78168 CARTER, JEREMY L Training - Expense 401-870- 04 02/09/2023 GEN 78169 CENTURYLINK Utilities (Electric, Satellite 401-856- 05 02/09/2023 GEN 78171* CHRIS MOE OR SUSAN KARJALA DEP REFUND/APPLIED 235-000- 00 02/09/2023 GEN 78172* CHRIS MOE OR SUSAN KARJALA DEP REFUND/APPLIED 235-000- 00 02/09/2023 GEN 78173*4 CINTAS CORPORATION 4470 UNIFORMS & LAUNDRY 401-880- 04 UNIFORMS & LAUNDRY 401-880- 04 UNIFORMS & LAUNDRY 401-880- 04 HECK GEN 78173 TOTAL FOR FUND 2: 02/09/2023 GEN 78174*4 CITY OF HUTCHINSON VEHICLE/EQUIPMENT FUEL -GAS 401-880- 04 Vehicles - Material 402-895- 04 VEHICLES/EQUIPMENT FUEL-ADMIN 55/45 401-935- 08 Page 12/17 Amount 02/16/2023 10:00 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM O1/21/2023 - 02/17/2023 Payee Description Account Dept Page 13/17 Amount Fund: 2 GAS HECK GEN 78174 TOTAL FOR FUND 2: 3,073.56 02/09/2023 GEN 78175* CONWAY DEUTH & SCHMIESING PLLP MISC SERVICES 401-923- 08 13,000.00 02/09/2023 GEN 78177* DARLENE MARESCH-OSTROWSKI DEP REFUND/APPLIED 235-000- 00 43.75 02/09/2023 GEN 78187*4 GOPHER STATE ONE -CALL INC Materials 401-874- 04 16.66 Materials 401-874- 04 12.82 Line - Outside Services 401-856- 05 16.67 Line - Outside Services 401-856- 05 25.65 HECK GEN 78187 TOTAL FOR FUND 2: 71.80 02/09/2023 GEN 781884 GROEBNER & ASSOCIATES INC P/N# - 425X-22-W72-Q20 BARKSDALE 107-387- 00 1, 628.43 FREIGHT 401-874- 04 26.57 SALES TAX 401-874- 04 130.32 HECK GEN 78188 TOTAL FOR FUND 2: 1,785.32 02/09/2023 GEN 78189* HEATHER BOETTCHER OR HARLEY DEP REFUND/APPLIED 235-000- 00 70.00 02/09/2023 GEN 78191*4 HILLYARD/HUTCHINSON Grounds - Materials 401-935- 08 72.11 Grounds - Materials 401-935- 08 20.14 HECK GEN 78191 TOTAL FOR FUND 2: 92.25 02/09/2023 GEN 78192* HOTSY EQUIPMENT OF MINNESOTA GROUNDS - OUTSIDE SERVICES 401-935- 08 316.71 02/09/2023 GEN 78193* HUTCHFIELD SERVICES Grounds - Outside Services 401-935- 08 894.44 02/09/2023 GEN 78194*4 HUTCHINSON CO-OP Vehicle/Equipment Fuel 401-880- 04 100.95 02/09/2023 GEN 78195* HUTCHINSON LEADER Cip - Marketing 401-916- 07 111.00 02/09/2023 GEN 78196*4 HUTCHINSON WHOLESALE SUPPLY CO Power Equipment - Materials 402-895- 04 16.96 02/16/2023 10:00 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES User: JMartig CHECK DATE FROM O1/21/2023 - 02/17/2023 DE: Hutchinson Utili Check Date Bank Check # Payee Description Account Dept Fund: 2 GAS Power Equipment - Materials 402-895- 04 Power Equipment - Materials 402-895- 04 HECK GEN 78196 TOTAL FOR FUND 2: 02/09/2023 GEN 78197* JEFFREY GORDON DEP REFUND/APPLIED 235-000- 00 02/09/2023 GEN 78198* JILL MANTHEY DEP REFUND/APPLIED 235-000- 00 02/09/2023 GEN 78200* LISA BAHN DEP REFUND/APPLIED 235-000- 00 02/09/2023 GEN 78202 MAIERS, MATTHEW Training - Expense 401-870- 04 02/09/2023 GEN 78203* MARCO TECHNOLOGIES, LLC OFFICE SUPPLIES 401-921- 08 02/09/2023 GEN 78204* MARISSA THOMAS DEP REFUND/APPLIED 235-000- 00 02/09/2023 GEN 78206* MCCOY NYGAARD DEP REFUND/APPLIED 235-000- 00 02/09/2023 GEN 78208* MICAELA SMITH DEP REFUND/APPLIED 235-000- 00 02/09/2023 GEN 78213* MN MUNICIPAL UTILITIES ASSOCIATION DUES/MEMBERSHIP EXPENSE-QTR GAS DUES 401-930- 08 02/09/2023 GEN 78214 MURPHY, WILLIAM Cip - Residential 401-916- 07 02/09/2023 GEN 78215* NATHAN MYLLYKANGAS DEP REFUND/APPLIED 235-000- 00 02/09/2023 GEN 78216 NELSON TECHNOLOGIES INC FREIGHT & SALES TAX 401-874- 04 BELGAS P/N# 655-689-000 - 4-15psi 402-892- 04 BELGAS P/N4 P28908004000000 - P289 1" 402-892- 04 HECK GEN 78216 TOTAL FOR FUND 2: 02/09/2023 GEN 78217 NORTHERN BORDER PIPELINE CO LINE - OUTSIDE SERVICES -INTERCONNECT 401-856- 05 Page 14/17 Amount 19.54 34.51 71.01 42.00 70.00 26.25 37.81 173.89 24.50 98.00 119.00 763.00 25.00 108.50 261.48 800.00 2,000.00 02/16/2023 10:00 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM O1/21/2023 - 02/17/2023 Payee Description Account Dept Page 15/17 Amount Fund: 2 GAS 02/09/2023 GEN 78219* NUVERA TELEPHONE 401-921- 08 630.99 02/09/2023 GEN 78220*4 O'REILLY AUTOMOTIVE INC Power Equipment - Materials 402-895- 04 37.05 Power Equipment - Materials 402-895- 04 54.75 HECK GEN 78220 TOTAL FOR FUND 2: 91.80 02/09/2023 GEN 78221*4 OXYGEN SERVICE COMPANY INC Materials 401-874- 04 90.17 Materials 401-874- 04 75.21 HECK GEN 78221 TOTAL FOR FUND 2: 165.38 02/09/2023 GEN 78222*4 PRO AUTO & TRANSMISSION REPAIR Vehicles - Material 402-895- 04 356.56 02/09/2023 GEN 78223 QUADIENT-POSTAGE Postage 401-921- 08 90.53 02/09/2023 GEN 78224 RANNOW, JASON Cip - Residential 401-916- 07 350.00 02/09/2023 GEN 78225* RELIANCE STANDARD LIFE -LIFE LTD INSURANCE-20o GAS 242-000- 00 408.19 LIFE INSURANCE-20o GAS 242-000- 00 250.82 HECK GEN 78225 TOTAL FOR FUND 2: 659.01 02/09/2023 GEN 78226*4 RUNNING'S SUPPLY INC Power Equipment - Materials 402-895- 04 7.10 02/09/2023 GEN 78227* SAM OR MORGAN SJOBERG DEP REFUND/APPLIED 235-000- 00 73.50 02/09/2023 GEN 78228* SANDRA JULIAN DEP REFUND/APPLIED 235-000- 00 26.25 02/09/2023 GEN 78229* SHRED RIGHT OFFICE SUPPLIES -SHREDDING SERVICES 401-921- 08 4.58 OFFICE SUPPLIES -SHREDDING SERVICES 401-921- 08 5.08 HECK GEN 78229 TOTAL FOR FUND 2: 9.66 02/09/2023 GEN 78230* STEPHEN KALENBERG DEP REFUND/APPLIED 235-000- 00 31.50 02/09/2023 GEN 78231* TAYLOR LEE DEP REFUND/APPLIED 235-000- 00 77.00 02/16/2023 10:00 AM User: JMartig DE: Hutchinson Utili Check Date Bank Check # Payee CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES CHECK DATE FROM O1/21/2023 - 02/17/2023 Description Fund: 2 GAS 02/09/2023 GEN 78234* UNITED PARCEL SERVICE 02/09/2023 GEN 78235* VARI SALES CORPORATION 02/09/2023 GEN 78236* VERIZON WIRELESS 02/09/2023 GEN 78237 WEBER, TIM 02/09/2023 GEN 78238* WHITNEY ROOT 02/09/2023 GEN 78239* WILLIAM OR JESSICA CARVER 02/09/2023 GEN 782404 WILNAT, INC 02/09/2023 GEN 78241 WITTE, JUSTIN 02/09/2023 GEN 78243 DUALDRAW 02/10/2023 GEN 1331(E)* INVOICE CLOUD 02/16/2023 GEN 1320(E)*4 VISA Account Dept Page 16/17 Amount MAIL SERVICES - UPS, FEDEX 401-921- 08 20.00 Office Supplies 401-921- 08 80.28 TELEPHONE 401-921- 08 408.13 Materials 401-874- 04 89.51 DEP REFUND/APPLIED 235-000- 00 21.00 DEP REFUND/APPLIED 235-000- 00 108.50 American 1813 C -KGM build 40030 107-383- 00 1,322.20 FREIGHT AND SALES TAX 401-874- 04 186.87 HECK GEN 78240 TOTAL FOR FUND 2: 1,509.07 Training - Expense 401-870- 04 16.21 TB3072AIN-NS, 30" x 72" Heavy Duty 107-394- 00 12,609.00 Collection - Materials 401-903- 06 1,961.27 Materials 401-874- 04 124.54 Materials 401-874- 04 186.81 Uniforms & Laundry 401-880- 04 79.98 Telephone 401-921- 08 46.36 Telephone 401-921- 08 35.06 Uniforms 401-926- 08 279.99 Grounds - Materials 401-935- 08 7.77 Grounds - Materials 401-935- 08 7.89 Grounds - Materials 401-935- 08 8.40 Grounds - Materials 401-935- 08 12.45 HECK GEN 1320(E) TOTAL FOR FUND 2: 789.25 02/16/2023 10:00 AM CHECK DISBURSEMENT REPORT FOR HUTCHINSON UTILITIES User: JMartig CHECK DATE FROM O1/21/2023 - 02/17/2023 DE: Hutchinson Utili Check Date Bank Check # Payee Description Fund: 2 GAS 02/17/2023 GEN 1332(E) PUBLIC ENERGY AUTHORITY OF Gas For Retail Contract Gas For Retail HECK GEN 1332(E) TOTAL FOR FUND 2: Total for fund 2 GAS TOTAL - ALL FUNDS --INDICATES CHECK DISTRIBUTED TO MORE THAN ONE FUND '#'-INDICATES CHECK DISTRIBUTED TO MORE THAN ONE DEPARTMENT Account Dept Page 17/17 Amount 401-807- 04 545,503.90 401-807- 04 186.00 623,406.30 1,290,012.27 HUTCHINSON UTILITIES COMMISSION COMBINED DIVISIONS FINANCIAL REPORT FOR JANUARY, 2023 2023 2022 pi . Combined Division Customer Revenue $ 3,922,229 $ 4,073,373 $ (151,144) Sales for Resale $ 410,495 $ 278,518 $ 131,977 NU Transportation $ 88,656 $ 88,487 $ 169 Electric Division Transfer $ 59,960 $ 59,724 $ 236 Other Revenues $ 34,900 $ 32,853 $ 2,048 Interest Income $ 74,868 $ 35,907 $ 38,961 TOTAL REVENUES $ 4,591,108 $ 4,568,861 $ 22,247 Salaries & Benefits $ 621,739 $ 590,487 $ 31,252 Purchased Commodities $ 2,628,574 $ 2,494,416 $ 134,159 Transmission $ 224,004 $ 224,829 $ (826) Generator Fuel/Chem. $ 29,165 $ 133,800 $ (104,635) Depreciation $ 375,318 $ 378,711 $ (3,392) Transfers (Elect./City) $ 218,671 $ 215,323 $ 3,348 Operating Expense $ 301,822 $ 352,829 $ (51,007) Debt Interest $ 65,534 $ 75,076 $ (9,542) TOTAL EXPENSES $ 4,464,827 $ 4,465,470 $ (643) NET PROFIT/(LOSS) $ 126,281 $ 103,391 $ 22,890 %Chna 1 2023 2022 Di %Chna I Full Yr Bud %of Bud (3.7%) $ 3,922,229 $ 4,073,373 $ (151,144) (3.7%) $ 38,930,509 10.1% 47.4% $ 410,495 $ 278,518 $ 131,977 47.4% $ 4,230,000 9.7% 0.2% $ 88,656 $ 88,487 $ 169 0.2% $ 1,354,349 6.5% 0.4% $ 59,960 $ 59,724 $ 236 0.4% $ 719,517 8.3% 6.2% $ 34,900 $ 32,853 $ 2,048 6.2% $ 484,081 7.2% 108.5% $ 74,868 $ 35,907 $ 38,961 108.5% $ 533,457 14.0% 0.5% $ 4,591,108 $ 4,568,861 $ 22,247 0.5% $ 46,251,913 9.9% 5.29% $ 621,739 $ 590,487 $ 31,252 5.3% $ 7,510,583 8.3% 5.4% $ 2,628,574 $ 2,494,416 $ 134,159 5.4% $ 21,566,760 12.2% (0.4%) $ 224,004 $ 224,829 $ (826) (0.4%) $ 3,325,000 6.7% (78.2%) $ 29,165 $ 133,800 $ (104,635) (78.2%) $ 1,760,606 1.7% (0.9%) $ 375,318 $ 378,711 $ (3,392) (0.9%) $ 4,400,000 8.5% 1.6% $ 218,671 $ 215,323 $ 3,348 1.6% $ 2,624,053 8.3% (14.5%) $ 301,822 $ 352,829 $ (51,007) (14.5%) $ 3,209,835 9.4% (12.7%) $ 65,534 $ 75,076 $ (9,542) 12.7% $ 786,406 8.3% (0.0%) $ 4,464,827 $ 4,465,470 $ (643) (0.0%) $ 45,183,243 9.9% 22.1%1 126,281 $ 103,391 $ 22,890 22.1% $ 1,068,670 11.8% January January YTD YTD 2023 2022 Change 2023 2022 Change Gross Margin %: 27.0% 28.9% -1.9% 27.0% 28.9% -1.9% Operating Income Per Revenue $ (%): 2.2% 2.5% -0.3% 2.2% 2.5% -0.3% Net Income Per Revenue $ (%): 2.8% 2.3% 0.5% 2.8% 2.3% 0.5% HUTCHINSON UTILITIES COMMISSION ELECTRIC DIVISION FINANCIAL REPORT FOR JANUARY, 2023 2023 2022 2 % Chna 2023 2022 E . Electric Division Customer Revenue $ 2,031,577 $ 2,021,319 $ 10,258 0.5% $ 2,031,577 $ 2,021,319 $ 10,258 Sales for Resale $ 410,495 $ 278,518 $ 131,977 47.4% $ 410,495 $ 278,518 $ 131,977 Other Revenues $ 11,810 $ 3,459 $ 8,351 241.4% $ 11,810 $ 3,459 $ 8,351 Interest Income $ 38,828 $ 19,348 $ 19,481 100.7% $ 38,828 $ 19,348 $ 19,481 TOTAL REVENUES $ 2,492,710 $ 2,322,643 $ 170,067 7.3% $ 2,492,710 $ 2,322,643 $ 170,067 &33% of Year Comp. % Chna Full Yr Bud % of Bud 0.5% $ 25,750,654 7.9% 47.4% $ 4,230,000 9.7% 241.4% $ 187,047 6.3% 100.7% $ 283,457 13.7% 7.3%1 $ 30,451,158 8.2% Salaries & Benefits $ 470,660 $ 441,586 $ 29,074 6.6% $ 470,660 $ 441,586 $ 29,074 6.6% $ 5,465,303 8.6% Purchased Power $ 1,321,657 $ 1,053,104 $ 268,552 25.5% $ 1,321,657 $ 1,053,104 $ 268,552 25.5% $ 12,862,000 10.3% Transmission $ 224,004 $ 224,829 $ (826) (0.4%) $ 224,004 $ 224,829 $ (826) (0.4%) $ 3,325,000 6.7% Generator Fuel/Chem. $ 29,165 $ 133,800 $ (104,635) (78.2%) $ 29,165 $ 133,800 $ (104,635) (78.2%) $ 1,760,606 1.7% Depreciation $ 284,630 $ 287,381 $ (2,752) (1.0%) $ 284,630 $ 287,381 $ (2,752) (1.0%) $ 3,300,000 8.6% Transfers (Elect./City) $ 169,911 $ 167,519 $ 2,392 1.4% $ 169,911 $ 167,519 $ 2,392 1.4% $ 2,038,931 8.3% Operating Expense $ 231,204 $ 279,044 $ (47,841) (17.1%) $ 231,204 $ 279,044 $ (47,841) (17.1%) $ 1,954,789 11.8% Debt Interest $ 37,738 $ 40,071 $ (2,333) (5.8%) $ 37,738 $ 40,071 $ (2,333) LLa2L $ 452,856 8.3% TOTAL EXPENSES $ 2,768,967 $ 2,627,335 $ 141,632 5.4% $ 2,768,967 $ 2,627,335 $ 141,632 5.4% $ 31,159,485 8.9% NET PROFIT/(LOSS) $ (276,257) $ (304,692) $ 28,436 (9.3%) $ (708,327) 39.0% $ (276,257) $ (304,692) $ 28,436 (9.3%) 0 of Year Comp. $.33r6 2023 2022 2 %Chna 2023 2022 2 . %Chna Full YrBud %ofBud Electric Division Residential 4,537,544 4,791,076 (253,532) (5.29%) 4,537,544 4,791,076 (253,532) (5.29%) 54,834,787 8.3% All Electric 346,621 420,577 (73,956) (17.58%) 346,621 420,577 (73,956) (17.58%) 2,716,035 12.8% Small General 1,608,782 1,680,183 (71,401) (4.25%) 1,608,782 1,680,183 (71,401) (4.25%) 18,332,200 8.8% Large General 6,475,960 6,721,270 (245,310) (3.65%) 6,475,960 6,721,270 (245,310) (3.65%) 84,325,256 7.7% Industrial 8,430,000 9,174,000 (744,000) (8.11%) 8,430,000 9,174,000 (744,000) (8.11%) 120,422,724 7.0% Total KWH Sold 21,398,907 22,787,106 (1,388,199) (6.09%) 21,398,907 22,787,106 (1,388,199) (6.09%) 280,631,002 7.6% January January YTD YTD 2023 HUC 2023 2022 Change 2023 2022 Change Budget Target Gross Margin %: 19.9% 24.1% -4.2% 19.9% 24.1% -4.2% 26.7% 24%-28% Operating Income Per Revenue $ (%): -11.3% -12.3% 1.0% -11.3% -12.3% 1.0% -1.9% III I Net Income Per Revenue $ (%): -11.1% -13.1% 2.0% -11.1% -13.1% 2.0% -2.3% Customer Revenue per KWH: $0.0949 $0.0887 $0.0062 $0.0949 $0.0887 $0.0062 $0.0918 Total Power Supply Exp. per KWH: $0.0918 $0.0767 $0.0151 $0.0918 $0.0767 $0.0151 $0.0786 q'ygr; Notes/Graphs: Net Loss decreased by $28,436 over January 2022. The increase in Purchased Power and decrease in Generator Fuel can be partially attributed to Unit #1 being down for repairs. This caused HUC to purchase $145,000 on the market to cover the Dynasty Power contract during the times they called on our generation. There was also a reduction in fuel expenses because HUC did not contract gas this winter (Jan/Feb) to run generation as a hedging strategy against high market prices. Operating Expenses were down due to paying the entire MMUA dues for 2022 in January as well as some Unit 1 repairs that were done a year ago Sales for Resale of $410,495 consisted of $9,771 in market sales, $98,000 in capacity sales to Rice Lake, $146,250 in capacity sales to AEP, and $156,474 in Tolling agreement sales to Dynasty Power. January 2022 Sales for Resale of $278,518 included $34,268 in market sales, $146,250 in capacity sales to AEP, and $98,000 in capacity sales to Rice Lake. January 2021 Sales for Resale of $245,327 consisted of $1,077 in market sales, $146,250 in capacity sales to AEP, and $98,000 in capacity sales to Rice Lake. Overall Purchased Power increased by $268,522. MRES purchases decreased by $7,081 and market purchases/MISO costs increased by $275,603. The average cost of MISO power was $39.67/mwh (5,974 mwh's purchased), compared to $30.77/mwh (3,044 mwh's purchased) in January 2022. Power Cost Adjustment for January 2023 was $.01009/kwhr bringing in an additional $216,577 for the month. Power Cost Adjustment for January 2022 was $.00464/kwhr bringing in an additional $106,073 for the month. HUTCHINSON UTILITIES COMMISSION GAS DIVISION FINANCIAL REPORT FOR JANUARY, 2023 2023 2022 2 %Chna 2023 2022 2 %Chna Full YrBud %of Bud Gas Division Customer Revenue $ 1,890,652 $ 2,052,054 $ (161,402) (7.9%) $ 1,890,652 $ 2,052,054 $ (161,402) (7.9%) $ 13,179,855 14.3% Transportation $ 88,656 $ 88,487 $ 169 0.2% $ 88,656 $ 88,487 $ 169 0.2% $ 1,354,349 6.5% Electric Div. Transfer $ 59,960 $ 59,724 $ 236 0.4% $ 59,960 $ 59,724 $ 236 0.4% $ 719,517 8.3% Other Revenues $ 23,090 $ 29,394 $ (6,304) (21.4%) $ 23,090 $ 29,394 $ (6,304) (21.4%) $ 297,034 7.8% Interest Income $ 36,040 $ 16,560 $ 19,481 117.6% $ 36,040 $ 16,560 $ 19,481 117.6% $ 250,000 14.4% TOTAL REVENUES $ 2,098,397 $ 2,246,218 $ (147,820) (6.6%) $ 2,098,397 $ 2,246,218 $ (147,820) (6.6%) $ 15,800,755 13.3% Salaries & Benefits $ 151,079 $ 148,901 $ 2,178 1.5% $ 151,079 $ 148,901 $ 2,178 1.5% $ 2,045,280 7.4% Purchased Gas $ 1,306,918 $ 1,441,311 $ (134,394) (9.3%) $ 1,306,918 $ 1,441,311 $ (134,394) (9.3%) $ 8,704,760 15.0% Operating Expense $ 70,619 $ 73,785 $ (3,166) (4.3%) $ 70,619 $ 73,785 $ (3,166) (4.3%) $ 1,255,046 5.6% Depreciation $ 90,689 $ 91,329 $ (641) (0.7%) $ 90,689 $ 91,329 $ (641) (0.7%) $ 1,100,000 8.2% Transfers (City) $ 48,760 $ 47,804 $ 956 2.0% $ 48,760 $ 47,804 $ 956 2.0% $ 585,122 8.3% Debt Interest $ 27,796 $ 35,004 $ (7,208) 0.0% $ 27,796 $ 35,004 $ (7,208) 20.6% $ 333,550 8.3% TOTAL EXPENSES $ 1,695,860 $ 1,838,135 $ (142,275) (7.7%) $ 1,695,860 $ 1,838,135 $ (142,275) (7.7%) $ 14,023,758 12.1% NET PROFIT/(LOSS) $ 402,537 $ 408,,y083 $ (5Q,,545) (1.4%) $ 402,537 $ $ (1.4%) $ 1,776,997 22.7% QQQ �yy44008,,,0�p8�3 JJyyy(5,5�(4Q5Q) 8.33% of Year Comp. 2023 2022 2 . %Chng 2023 2022 2 . %Chng Full YrBud %ofBud Gas Division Residential 76,420,480 92,433,439 (16,012,959) (17.32%) 76,420,480 92,433,439 (16,012,959) (17.32%) 449,212,000 17.0% Commercial 54,208,584 65,831,765 (11,623,181) (17.66%) 54,208,584 65,831,765 (11,623,181) (17.66%) 350,057,000 15.5% Industrial 104,534,054 116,389,619 (11,855,565) (10.19%)l 104,534,054 116,389,619 (11,855,565) (10.19%)l 919,535,000 11.4% Total CF Sold 235,163,118 274,654,823 (39,491,705) (14.38%)l 235,163,118 274,654,823 (39,491,705) (14.38%)l 1,718,804,000 13.7% January January YTD YTD 2023 HUC 2023 2022 Change 2023 2022 Change Budget Target Gross Margin %: 35.5% 33.9% 1.6% 35.5% 33.9% 1.6% 40.4% 37%-40% Operating Income Per Revenue $ (%): 18.4% 18.1% 0.3% 18.4% 18.1% 0.3% 10.6% IIIIIIIIIIIIIIIIIIIIII Net Income Per Revenue $ (%): 19.2% 18.2% 1.0% 19.2% 18.2% 1.0% 11.2% Contracted Customer Rev. per CF: $0.0073 $0.0061 $0.0012 $0.0073 $0.0061 $0.0012 $0.0063 """"""� uuuuuuuuuuuu Customer Revenue per CF: $0.0086 $0.0084 $0.0002 $0.0086 $0.0084 $0.0002 $0.0091 IIIIIIIIIIIIIIIIIIIIII M Total Power Supply Exp. per CF: $0.0056 $0.0053 $0.0003 $0.0056 $0.0053 $0.0003 $0.0053 $0.0053 Notes/Graphs: January 2023 net income decreased by $5,545 mainly due to decreased revenue associated with higher than normal temperatures which also led to lower purchased gas expense. There was no fuel cost adjustment for either January 2023 or January 2022. 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 HUTCHINSON UTILITIES COMMISSION BALANCE SHEET - CONSOLIDATED JANUARY31, 2023 Electric Gas Total Total Net Change Division Division 2023 2022 Total (YTD) 4,619,587.72 11,169,982.77 15,789,570.49 16,728,038.01 (938,467.52) 680.00 170.00 850.00 850.00 - 2,750,000.00 700,000.00 3,450,000.00 3,450,000.00 - 1,319,414.00 585,122.00 1,904,536.00 1,867,192.00 37,344.00 395,204.99 - 395,204.99 364,336.05 30,868.94 - 278,849.08 278,849.08 578,320.48 (299,471.40) 800,000.00 200,000.00 1,000,000.00 1,000,000.00 - 897,142.71 - 897,142.71 896,809.28 333.43 - 359,758.34 359,758.34 358,341.62 1,416.72 522,335.64 2,188,694.02 2,711,029.66 2,711,029.66 - 11,304,365.06 15,482,576.21 26,786,941.27 27,954,917.10 (1,167,975.83) 2,349,781.25 2,011,974.97 4,361,756.22 4,295,658.92 66,097.30 59,141.99 59,142.00 118,283.99 94,415.01 23,868.98 2,408,923.24 2,071,116.97 4,480,040.21 4,390,073.93 89,966.28 1,712,318.49 509,303.65 2,221,622.14 2,245,020.53 (23,398.39) 165,274.10 (10,800.23) 154,473.87 408,929.22 (254,455.35) 225,754.34 - 225,754.34 145,043.17 80,711.17 1,630,746.00 - 1,630,746.00 1,630,746.00 - - 543,582.00 543,582.00 543,582.00 - 3,734,092.93 1,042,085.42 4,776,178.35 4,973,320.92 (197,142.57) 17, 447, 381.23 18, 595, 778.60 690,368.40 3,899,918.60 111,639,344.84 42,872,726.46 (67,218,554.87) (20,355,064.54) 757,579.10 289,266.06 4.5,868,737.47 26,706,846.58 36,043,159.83 37,318,311.95 (1,275,152.12) 4,590,287.00 4,590,287.00 - 154,512,071.30 153,770,862.15 741,209.15 (87,573,619.41) (83,237,691.28) (4,335,928.13) 1,046,845.16 59,532.50 987,312.66 72,575,584.05 75,182,990.37 (2,607,406.32) Total Assets 63,316,118.70 45,302,625.18 108,618,743.88 112,501,302.32 (3,882,558.44) Current Liabilities Current Portion of Long-term Debt Bonds Payable Bond Premium Accounts Payable Accrued Expenses Accrued Interest Accrued Payroll Total Current Liabilities Long -Term Liabilities Noncurrent Portion of Long-term Debt 2017 Bonds 2012 Bonds Bond Premium 2012 Pension Liability- Electric Pension Liability - Electric OPEB Pension Liability - Nat Gas Pension Liability - Nat Gas OPEB Accrued Vacation Payable Accrued Severance Deferred Outflows - Electric Deferred Outflows - Nat Gas Total Long -Term Liabilities Net Position Retained Earnings Total Net Position HUTCHINSON UTILITIES COMMISSION BALANCE SHEET - CONSOLIDATED JANUARY31, 2023 Electric Gas Total Division Division 2023 730,000.00 1,610,295.46 75,476.05 158,654.46 2,574,425.97 13,300,000.00 496,278.24 2,219,565.00 94,162.00 514,998.51 109,985.36 2,041,393.00 18,776,382.11 1,825,000.00 185,608.32 1,430,603.16 55,591.68 49,695.73 3,546,498.89 5,955,000.00 525,889.87 739,855.00 31,387.00 185,601.83 30,300.18 680,464.00 8,148,497.88 41,965,310.62 33,607,628.41 41,965,310.62 33,607,628.41 2,555,000.00 185,608.32 3,040,898.62 131,067.73 208,350.19 6,120,924.86 13,300,000.00 5,955,000.00 1,022,168.11 2,219,565.00 94,162.00 739,855.00 31,387.00 700,600.34 140,285.54 2,041,393.00 680,464.00 26,924,879.99 Total Net Change 2022 Total (YTD) 2,430,000.00 125,000.00 185,608.32 - 3,404,214.87 (363,316.25) 150,151.01 (19,083.28) 167,101.85 41,248.34 6,337,076.05 (216,151.19) 14,030,000.00 (730,000.00) 7,780,000.00 (1,825,000.00) 1,241,233.39 (219,065.28) 2,219,565.00 - 94,162.00 - 739,855.00 - 31,387.00 - 595,141.98 105,458.36 123,254.85 17,030.69 2,041,393.00 - 680,464.00 - 29,576,456.22 (2,651,576.23) 75,572,939.03 76,587,770.05 (1,014,831.02) 75,572,939.03 76,587,770.05 (1,014,831.02) Total Liabilities and Net Position 63,316,118.70 45,302,625.18 108,618,743.88 112,501,302.32 (3,882,558.44) Hutchinson Utilities Commission Cash -Designations Report, Combined January 31, 2023 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest January 2023 December 2022 Position Savings, Checking, Investments varies varies varies 26,786,941.27 27,083,765.51 (296,824.24) Total Operating Funds 26,786,941.27 27,083,765.51 (296,824.24) Debt Reserve Requirements Bond Covenants - sinking fund Debt Reserve 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 Min 60 days of 2023 Operating Bud. Charter (Formula Only) Risk Mitigation Amount 5 Year CIP (2023-2027 Fleet & Infrastructure Maintenance) 1,256,901.05 978,450.53 278,450.52 2,711,029.66 2,711,029.66 - 3,967,930.71 3,689,480.19 278,450.52 6,797,207.17 6,432,490.00 364,717.17 674,054.07 645,196.34 28,857.73 1,904,536.00 1,904,536.00 - 1, 000, 000.00 1, 000, 000.00 3,450,000.00 3,450,000.00 - 13,825,797.24 13,432,222.34 393,574.90 YE YE YE YE YT0 HUC 2019 2020 2021 2022 2023 Target Debt to Asset 34.9% 32.3% 30.8% 30.9% 30.4% Current Ratio 5.11 5.67 5.22 4.45 4.89 RONA 2.25% 3.62% 0.41% -0.78% 0.13% Change in Cash Balance (From 12131114 to 113112023) Month End Electric Elec. Change Natural Gas Gas Change Total Total Change 1/31/202 3 11, 304, 365 15, 482, 576 26, 786, 941 12/31/2022 11,633,212 15,450,554 27,083,766 (296,824) 12/31/2021 12,870,253 (1,237,041) 15,086,000 364,554 27,956,253 (872,487) 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 Significant increase in cash balance is due to issuing bonds for the generator project. Hutchinson Utilities Commission Cash -Designations Report, Electric January 31, 2023 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest January 2023 December 2022 Position Savings, Checking, Investments varies varies Total HUC Operating Funds tiectric iI 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 26,786,941.27 27,083,765.51 (296,824.24) 26,786,941.27 27,083,765.51 (296,824.24) Min 60 days of 2023 Operating Bud. $400 K-$1.2 K Charter (Formula Only) Risk Mitigation Amount 5 Year CIP (2023-2027 Fleet & Infrastructure Maintenance) 897,142.71 798,571.36 98,571.35 522,335.64 522,335.64 - 1,419,478.35 1,320,907.00 98,571.35 4,643,247.50 4,430,143.33 213,104.17 395,204.99 395,204.99 - 1, 319, 414.00 1, 319, 414.00 800,000.00 800,000.00 2,750,000.00 2,750,000.00 - 9,907,866.49 9,694,762.32 213,104.17 YE YE YE YE YTD APPA Ratio HUC 2019 2020 2021 2022 2023 5K-10K Cust. Target Debt to Asset Ratio (* w/Gen.) 34.1% 32.6% 32.2% 33.9% 33.7% 39.8% Current Ratio 5.26 6.18 5.70 4.91 5.59 3.75 RONA -0.4% 2.5% -1.2% -3.5% -0.5% NA >0% Notes/Graphs: Hutchinson Utilities Commission Cash -Designations Report, Gas January 31, 2023 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest January 2023 December 2022 Position Savings, Checking, Investments varies varies Total HUC Operating Funds Debt Restricted Requirements Bond Covenants - sinking fund Debt Restricted Requirements Bond Covenants -1 year Max. P & I Total Restricted Funds Operating Reserve Rate Stabalization Funds PILOT Funds Catastrophic Funds Capital Reserves Total Designated Funds varies 26,786,941.27 27,083,765.51 (296,824.24) 26,786,941.27 27,083,765.51 (296,824.24) Min 60 days of 2023 Operating Bud. $200K-$600K Charter (Formula Only) Risk Mitigation Amount 5 Year CIP (2023-2027 Fleet & Infrastructure Maintenance) 359, 758.34 179, 879.17 179, 879.17 2,188,694.02 2,188,694.02 - 2,548,452.36 2,368,573.19 179,879.17 2,153,959.67 2,002,346.67 151,613.00 278,849.08 249,991.35 28,857.73 585,122.00 585,122.00 - 200,000.00 200,000.00 700,000.00 700,000.00 - 3,917,930.75 3,737,460.02 180,470.73 YE YE YE YE YTD HUC 2019 2020 2021 2022 2023 AGA Ratio Target Debt to Asset 36.1% 32.0% 28.8% 26.5% 25.8% 35%-50% Current Ratio 4.96 5.18 4.79 4.08 4.37 1.0-3.0 RONA 6.4% 5.3% 2.9% 3.4% 1.0% 2%-5% Notes/Graphs: HUTCHINSON UTILITIES COMMISSION Investment Report For the Month Ended January 31, 2023 Interest Current Date of Date of Par Current Purchase Unrealized Premium Next Institution Description Rate YTM Purchase Maturity Value Value Amount Gain/(Loss) (Discount) Call Date Wells Fargo Money Market 3.780% 3.780% NA NA - 54,900.53 - - - N/A Wells Fargo US Treasury Note 2.500% 1.942% 06/07/2022 03/31/2023 1,000,000.00 996,550.00 1,004,471.88 (7,921.88) 4,471.88 N/A Wells Fargo US Treasury Note 2.750% 2.128% 06/07/2022 05/31/2023 1,000,000.00 993,200.00 1,006,000.00 (12,800.00) 6,000.00 N/A Wells Fargo FHLB 4.750% 4.750% 02/01/2023 02/01/2024 1,000,000.00 999,120.00 1,000,000.00 (880.00) - N/A Wells Fargo FFCB 4.250% 4.250% 12/20/2022 12/20/2024 1,000,000.00 997,040.00 1,000,000.00 (2,960.00) - N/A Wells Fargo FHLB 0.400% 0.587% 01/29/2021 01/29/2026 295,000.00 266,859.95 295,000.00 (28,140.05) - 07/29/2023 Wells Fargo FHLB 0.400% 0.525% 02/09/2021 02/09/2026 470,000.00 422,807.30 470,000.00 (47,192.70) - 02/09/2023 Wells Fargo FHLB 0.750% 1.432% 04/29/2021 04/29/2026 400,000.00 371,104.00 400,000.00 (28,896.00) - 06/29/2023 Wells Fargo FHLB 0.650% 1.069% 06/30/2021 06/30/2026 300,000.00 271,884.00 300,000.00 (28,116.00) - 03/30/2023 Wells Fargo FHLB 0.700% 1.281% 09/30/2021 09/30/2026 250,000.00 226,682.50 250,000.00 (23,317.50) - 03/30/2023 Wells Fargo CD's 2.550% 2.550% 06/17/2022 12/18/2023 245,000.00 240,433.20 245,000.00 (4,566.80) - N/A Wells Fargo CD's 0.300% 0.300% 01/08/2021 01/08/2024 245,000.00 235,035.85 245,000.00 (9,964.15) - N/A Wells Fargo CD's 0.450% 0.450% 04/14/2021 04/15/2024 245,000.00 232,691.20 245,000.00 (12,308.80) - 02/14/2023 Wells Fargo CD's 2.800% 2.800% 06/17/2022 06/17/2024 245,000.00 238,759.85 245,000.00 (6,240.15) - N/A Wells Fargo CD's 0.550% 0.550% 08/02/2021 08/05/2024 245,000.00 230,253.45 245,000.00 (14,746.55) - N/A Wells Fargo CD's 4.800% 4.800% 11/16/2022 11/15/2024 245,000.00 245,411.60 245,000.00 411.60 - N/A Wells Fargo CD's 1.100% 1.100% 01/31/2022 01/31/2025 245,000.00 228,403.70 245,000.00 (16,596.30) - 07/31/2023 Wells Fargo CD's 1.600% 1.600% 02/23/2022 02/24/2025 245,000.00 230,290.20 245,000.00 (14,709.80) - N/A Wells Fargo CD's 3.100% 3.100% 06/15/2022 06/16/2025 245,000.00 236,425.00 245,000.00 (8,575.00) - N/A Wells Fargo CD's 3.100% 3.100% 06/15/2022 06/16/2025 245,000.00 236,425.00 245,000.00 (8,575.00) - N/A Wells Fargo CD's 3.300% 3.300% 08/26/2022 08/26/2025 245,000.00 236,978.70 245,000.00 (8,021.30) - N/A Wells Fargo CD's 1.000% 1.000% 05/19/2021 05/19/2026 245,000.00 218,030.40 245,000.00 (26,969.60) - N/A Wells Fargo CD's 1.000% 1.000% 07/28/2021 07/28/2026 245,000.00 216,107.15 245,000.00 (28,892.85) - N/A Wells Fargo CD's 1.050% 1.050% 08/08/2021 08/25/2026 238,000.00 210,318.22 238,000.00 (27,681.78) - N/A Wells Fargo CD's 1.000% 1.207% 07/31/2021 07/13/2028 245,000.00 205,922.50 245,000.00 (39,077.50) 06/13/2023 Broker Total 49.4% 9,383,000.00 9,041,634.30 9,393,471.88 (406,738.11) 10,471.88 Cetera Investment Services Money Market 0.450% 0.450% N/A N/A - 1,018.01 - - - N/A Cetera Investment Services Municipal Bonds 3.650% 3.004% 12/20/2018 02/01/2023 250,000.00 250,000.00 256,165.00 (6,165.00) 6,165.00 N/A Cetera Investment Services Municipal Bonds 3.240% 3.240% 11/17/2017 02/15/2023 80,000.00 79,858.40 69,633.48 10,224.92 (10,366.52) N/A Cetera Investment Services Municipal Bonds 3.075% 3.236% 12/20/2018 06/01/2023 50,000.00 49,739.00 49,746.15 (7.15) (253.85) N/A Cetera Investment Services Municipal Bonds 5.290% 2.724% 04/18/2019 06/01/2023 260,000.00 260,478.40 291,059.96 (30,581.56) 31,059.96 N/A Cetera Investment Services Municipal Bonds 2.500% 3.181% 12/20/2018 08/01/2023 35,000.00 34,629.00 34,320.05 308.95 (679.95) N/A Cetera Investment Services Municipal Bonds 3.400% 3.148% 12/20/2018 11/01/2023 125,000.00 123,301.25 126,376.25 (3,075.00) 1,376.25 N/A Cetera Investment Services Municipal Bonds 3.400% 3.148% 12/20/2018 11/01/2023 65,000.00 64,116.65 65,715.65 (1,599.00) 715.65 N/A Cetera Investment Services Municipal Bonds 2.854% 3.173% 12/20/2018 02/01/2024 100,000.00 97,797.00 99,605.96 (1,808.96) (394.04) N/A Cetera Investment Services Municipal Bonds 2.977% 3.246% 12/20/2018 03/15/2024 250,000.00 245,130.00 248,743.99 (3,613.99) (1,256.01) N/A Cetera Investment Services Municipal Bonds 1.940% 1.821% 01/13/2020 05/01/2024 65,000.00 62,901.80 65,570.70 (2,668.90) 570.70 N/A Cetera Investment Services Municipal Bonds 5.742% 3.658% 04/11/2019 08/01/2024 190,000.00 192,865.20 208,924.00 (16,058.80) 18,924.00 N/A Cetera Investment Services Municipal Bonds 2.400% 2.908% 08/05/2022 08/15/2024 50,000.00 48,460.50 50,070.17 (1,609.67) 70.17 N/A Cetera Investment Services Municipal Bonds 2.402% 2.926% 08/05/2022 10/01/2024 125,000.00 121,367.50 124,674.19 (3,306.69) (325.81) N/A Cetera Investment Services Municipal Bonds 2.528% 1.918% 01/13/2020 12/01/2024 100,000.00 96,647.00 102,999.53 (6,352.53) 2,999.53 N/A Cetera Investment Services Municipal Bonds 1.319% 4.407% 09/26/2022 12/01/2024 50,000.00 47,001.00 47,238.35 (237.35) (2,761.65) N/A Cetera Investment Services Municipal Bonds 3.922% 3.429% 12/20/2018 12/01/2024 204,000.00 201,050.16 208,181.10 (7,130.94) 4,181.10 N/A Cetera Investment Services Municipal Bonds 4.400% 3.221% 04/11/2019 07/01/2025 500,000.00 490,305.00 539,101.11 (48,796.11) 39,101.11 07/01/2023 Cetera Investment Services Municipal Bonds 0.824% 4.678% 01/09/2023 08/01/2025 100,000.00 91,771.00 91,160.64 610.36 (8,839.36) N/A Cetera Investment Services Municipal Bonds 5.640% 3.007% 04/18/2019 08/15/2025 205,000.00 180,902.25 169,737.95 11,164.30 (35,262.05) N/A Cetera Investment Services Municipal Bonds 3.743% 2.740% 04/18/2019 09/15/2025 215,000.00 212,589.85 228,334.53 (15,744.68) 13,334.53 N/A Cetera Investment Services Municipal Bonds 3.379% 1.934% 08/19/2019 10/01/2025 310,000.00 299,993.20 339,739.18 (39,745.98) 29,739.18 N/A Cetera Investment Services Municipal Bonds 2.727% 2.271% 03/03/2022 12/01/2025 335,000.00 312,387.50 342,781.72 (30,394.22) 7,781.72 N/A Cetera Investment Services Municipal Bonds 5.600% 1.186% 07/28/2020 12/01/2025 45,000.00 46,506.60 55,250.55 (8,743.95) 10,250.55 N/A Cetera Investment Services Municipal Bonds 4.250% 3.258% 04/11/2019 01/01/2026 500,000.00 496,080.00 529,769.03 (33,689.03) 29,769.03 N/A Cetera Investment Services Municipal Bonds 2.420% 1.175% 10/06/2020 03/01/2026 100,000.00 92,345.00 106,734.28 (14,389.28) 6,734.28 N/A Cetera Investment Services Municipal Bonds 1.609% 1.124% 09/24/2020 04/01/2026 285,000.00 261,042.90 292,370.10 (31,327.20) 7,370.10 N/A Cetera Investment Services Municipal Bonds 6.690% 3.356% 04/18/2019 04/15/2026 60,000.00 51,001.80 47,545.20 3,456.60 (12,454.80) N/A Cetera Investment Services Municipal Bonds 5.900% 1.451% 07/28/2020 06/15/2026 75,000.00 78,390.75 93,741.75 (15,351.00) 18,741.75 N/A Cetera Investment Services Municipal Bonds 0.000% 1.415% 08/13/2020 07/01/2026 100,000.00 85,612.00 92,037.00 (6,425.00) (7,963.00) N/A Cetera Investment Services Municipal Bonds 3.250% 2.903% 04/18/2019 08/01/2026 500,000.00 477,445.00 514,790.69 (37,345.69) 14,790.69 N/A Cetera Investment Services Municipal Bonds 2.116% 3.307% 06/07/2022 08/01/2026 75,000.00 69,408.75 71,565.00 (2,156.25) (3,435.00) N/A Cetera Investment Services Municipal Bonds 2.150% 2.203% 07/01/2019 12/01/2026 40,000.00 37,106.00 40,150.64 (3,044.64) 150.64 N/A Cetera Investment Services Municipal Bonds 1.664% 1.150% 08/27/2020 09/01/2026 225,000.00 204,997.50 231,696.00 (26,698.50) 6,696.00 N/A Cetera Investment Services Municipal Bonds 2.375% 1.816% 09/04/2019 12/01/2026 90,000.00 83,194.20 93,395.70 (10,201.50) 3,395.70 N/A Cetera Investment Services Municipal Bonds 2.350% 2.191% 07/01/2019 12/01/2026 500,000.00 465,535.00 505,385.00 (39,850.00) 5,385.00 N/A Cetera Investment Services Municipal Bonds 3.000% 1.991% 08/19/2019 02/01/2027 50,000.00 47,393.00 53,551.00 (6,158.00) 3,551.00 N/A Cetera Investment Services Municipal Bonds 3.150% 2.034% 08/19/2019 03/15/2027 100,000.00 95,368.00 109,138.50 (13,770.50) 9,138.50 N/A 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 3.332% 3.120% 04/18/2019 04/15/2027 500,000.00 486,025.00 507,783.94 (21,758.94) 7,783.94 N/A Cetera Investment Services Municipal Bonds 3.865% 2.470% 08/19/2019 05/01/2027 55,000.00 54,291.05 60,986.48 (6,695.43) 5,986.48 05/01/2025 Cetera Investment Services Municipal Bonds 3.553% 2.289% OS/19/2019 OS/01/2027 55,000.00 53,100.30 60,468.04 (7,367.74) 5,468.04 O5/01/2026 Cetera Investment Services Municipal Bonds 3.230% 1.828% 08/19/2019 05/15/2027 145,000.00 139,130.40 160,827.31 (21,696.91) 15,827.31 N/A Cetera Investment Services Municipal Bonds 1.925% 1.719% 11/23/2021 06/01/2027 310,000.00 277,462.40 313,447.46 (35,985.06) 3,447.46 Make -Whole Call Cetera Investment Services Municipal Bonds 1.861% 1.254% O6/07/2021 07/01/2027 410,000.00 369,471.50 412,336.71 (42,865.21) 2,336.71 N/A Cetera Investment Services Municipal Bonds 3.000% 3.101% 05/18/2020 09/01/2027 65,000.00 65,099.45 69,180.58 (4,081.13) 4,180.58 09/01/2025 Cetera Investment Services Municipal Bonds 2.817% 2.817% 09/25/2019 10/01/2027 35,000.00 28,045.15 27,969.55 75.60 (7,030.45) 05/01/2025 Cetera Investment Services Municipal Bonds 1.415% 1.793% 11/23/2021 03/01/2028 100,000.00 87,333.00 98,088.31 (10,755.31) (1,911.69) N/A Cetera Investment Services Municipal Bonds 3.270% 2.141% 08/19/2019 03/15/2028 155:000.00 146,149.50 170,805.09 (24,655.59) 15,805.09 09/15/2027 Cetera Investment Services Municipal Bonds 2.974% 2.574% 11/07/2019 04/01/2028 75,000.00 69,210.75 77,253.00 (8,042.25) 2,253.00 N/A Cetera Investment Services Municipal Bonds 2.125% 1.904% 11/23/2021 06/01/2028 110,000.00 96,938.60 111,525.06 (14,586.46) 1,525.06 N/A Cetera Investment Services Municipal Bonds 2.547% 1.240% 08/10/2021 07/01/2028 125:000.00 114,611.25 136,101.16 (21,489.91) 11,101.16 N/A Cetera Investment Services Municipal Bonds 3.140% 2.004% 08/1 9/201 9 08/01/2028 500,000.00 465,690.00 547,105.00 (81,415.00) 47,105.00 08/01/2027 Cetera Investment Services Municipal Bonds 3.000% 2.199% 05/19/2020 08/15/2028 90,000.00 89,970.30 95,401.80 (5,431.50) 5,401.80 08/15/2025 Cetera Investment Services Municipal Bonds 1.692% 1.813% 11/24/2021 10/01/2028 180,000.00 154,447.20 179, 18%4 (24,741.54) (811.26) N/A Cetera Investment Services Municipal Bonds 3.000% 1.942% 08/19/2019 06/01/2029 115:000.00 106:863.75 125:961.80 (19,098.05) 10,961.80 N/A Cetera Investment Services Municipal Bonds 4.000% 3.214% 03/22/2021 09/01/2031 60,000.00 60,45%0 64,292.00 (3,842.00) 4,292.00 09/01/2024 Cetera Investment Services Municipal Bonds 3.500% 2.699% 11/23/2021 OZ01/2033 50,000.00 50,531.50 54,390.44 (3,858.94) 4,390.44 OZ01/2025 Cetera Investment Services Municipal Bonds 3.250% 2.655% 08/1 9/201 9 06/01/2029 75,000.00 75,831.75 79,860.31 (4,028.56) 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, 138.00 54,773.69 (4,635.69) 4:773.69 04/01/2027 Cetera Investment Services Municipal Bonds 3.125% 2.456% 11/23/2021 02/01/2035 50:000.00 50:258.50 54:236.11 (3,977.61) 4,236.11 02/01/2026 Broker Total 50.6% 9,719,000.00 9,246,785.52 10,058,982.68 (813,215.17) 339,982.68 TOTAL INVESTMENTS 100.0% $ 19,102,000.00 $ 18,288,419.82 $ 19,452,454.56 $ (1,219,953.28) $ 350,454.56 ELECTRIC DIVISION Operating Revenue January 2023 CLASS AMOUNT KWH /KWH Street Lights $30.90 567 $0.05450 Electric Residential Service $510,188.81 4,537,544 $0.11244 All Electric Residential Service $35,110.94 346,621 $0.10129 Electric Small General Service $175,294.81 1,608,782 $0.10896 Electric Large General Service $611,102.03 6,475,960 $0.09436 Electric Large Industrial Service $699,849.30 8,430,000 $0.08302 Total $2,031,576.79 21,399,474 $0.09494 Power Adjustment $0.01009 Rate Without Power Adjustment $0.08485 Electric Division Year -to -Date M2023 $A--t 02022 $A--t ■2023 KWH110 02022 KWH110 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 Street Lights Residential All Elec. Small Gen. Large Gen. Large For Resale Total Resid. Srv. Srv. Industrial NOTE: Sales for resale includes capacity sales and market sales. NATURAL GAS DIVISION Operating Revenue JANUARY 2023 CLASS AMOUNT MCF /$ MCF Residential $653,289.78 76,420 $8.54868 Commercial $469,412.91 54,209 $8.65932 Large Industrial $41,889.05 5,100 $8.21354 Large Industrial Contracts $726,059.99 99,434 $7.30193 Total $1,890,651.73 235,163 $8.03975 Fuel Adjustment $0.00000 Rate Without Fuel Adjustment $8.03975 Natural Gas Division Year -to -Date ® 2023 $ Amount 0 2022 $ Amount ■ 2023 MCF 13 2022 MCF 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 Gas Residential Gas Commercial Large Industrial Large Industrial Total Contracts HUTCHINSON UTILITIES COMMISSION f tit ,c�,« Board Action Form Agenda Item: Review Policies Anqie Radke Review Policies BACKGROUND/EXPLANATION OFAGENDA ITEM: es As part of HUC's standard operating procedures, a continual policy review is practiced. This month, the following policies were reviewed and no changes are recommended on these policies at this time: Section 2 of Exempt Handbook Section 2 of Non -Exempt Handbook BOARD ACTION REQUESTED: None EXEMPT SECTION 2 — ADMINISTRATION OF PERSONNEL POLICIES The Commission approves personnel policies intending uniform administration of personnel matters of the Utilities. The Commission may supplement, amend and/or rescind the policies to assure that they will remain practical, useful and current. In approving personnel policies, the Commission has made every effort to be as reasonable and practical as possible. Final responsibility for the enforcement of the policies shall rest with the Commission. The Commission however, has delegated to the General Manager the responsibility and authority for the enforcement of all personnel policies. The General Manager, in turn, delegates certain responsibilities and authority to the Staff as deemed advisable in order to carry out the personnel policies. The General Manager, however, remains accountable to the Commission. If the Commission has not clearly delegated its authority in a certain manner, the Commission retains authority to determine the appropriate action. These personnel policies govern all Utilities employees and apply to all cases except where a policy contained herein conflicts with a Union Contract, or other employment contract, or past practice, in which case the Union Contract, or other employment contract, or past practice shall govern. SAVINGS CLAUSE If any provision of this Handbook is declared by proper legislative, administrative or judicial authority to be unlawful, unenforceable or not in accordance with applicable Civil Service rules, or law, all other provisions of this Handbook shall remain in full force and effect for the duration of this Handbook. EQUAL EMPLOYMENT OPPORTUNITY HUC is committed to providing equal opportunity in all areas of employment, including, but not limited to recruitment, hiring, demotion, promotion, transfer, recruitment, selection, lay-off, disciplinary action, termination, compensation and selection for training. In accordance with Minnesota State Statute 363A, HUC will not discriminate against any employee or job applicant on the basis of race, color, creed, religion, national origin, ancestry, sex, sexual orientation, disability, age, marital status, genetic information, status with regard to public assistance, veteran status, familial status, or local human rights commission activity. TEMPORARY EMPLOYEES Temporary employees are required to sign the acknowledgement in Appendix C when they begin employment. The General Manager must approve employment of a temporary worker for longer than 14 consecutive weeks. The responsible Director or Manager must inform the General Manager of the desire to employ a temporary worker longer than 14 weeks. PROMOTIONS AND TRANSFERS HUC encourages individual advancement by providing opportunities for promotion and transfer as positions become available. Job vacancies shall be posted ten (10) working days. Employees desiring to be considered for the position must provide a letter of interest to the appropriate staff person by the deadline stated on the posting. All promoted and transferred employees shall serve a six (6) month trial period during which time the promoted or transferred employee may be placed back in the employee's previous job classification if a position is available and at the sole discretion of the Employer, without loss of seniority. We encourage employees to discuss their career plans and goals with their Director or Manager. LAYOFFS HUC retains its right to eliminate positions within the organization if the Commission deems it appropriate to do so. If a layoff occurs, RUC will provide four weeks' notice to affected employees. Layoffs will be based on skill, knowledge, utility needs and also employee's seniority. VOLUNTARY LEAVE OF ABSENCE HUC may request employees to voluntarily take a leave of absence without pay for a specified period of time. EMPLOYMENT OF RELATIVES No applicant or employee shall receive preferential consideration because of his/her relationship to an HUC employee, a Commission member, a Hutchinson City Council member or other City employees and officials. Any HUC employee who extends such preferential treatment is subject to discipline. Immediate family members may be employed by HUC provided there is no direct report relationship. No member of the immediate family of the General Manager or of a current member of the Commission may be employed by HUC. A former Commission member may not be hired as an employee of HUC for two years after the end of the Commissioner's term in office. EMPLOYEE CONDUCT All HUC employees are expected to conduct themselves in a manner that creates a work environment enabling employees to work effectively and to promote positive customer relations. HUC employees are required to adhere to the following standards of conduct while on the job. • To behave in a courteous, business -like manner and to comply with HUC policies and work rules. • Refrain from any and all action, which may be detrimental to the safety or work of other employees or to the goals of HUC. • To communicate openly and honestly with management, other employees, and the public. • To share responsibility for personal development and growth. • To continually strive for excellence in work product and habits. DISCIPLINE In general, HUC employees shall be subject to disciplinary action for failing to fulfill their duties and responsibilities, including observance of work rules approved by the Commission. It is the policy of the Commission to administer discipline fairly, without discrimination, and for just cause. The employee may use the grievance procedure with respect to any disciplinary action believed to be unjust or disproportionate to the alleged offense. The General Manager, Director or Manager shall investigate any allegation on which disciplinary action might be based before disciplinary action is taken. The Commission supports the concept of progressive discipline but expressly reserves the right to impose various levels of discipline depending on the nature of the offense. Staff Personnel may impose oral and written reprimands. Only the General Manager may impose a suspension without pay, letter in lieu of suspension, demotion, or discharge. Notices of oral reprimand, written reprimand, suspension without pay, demotion, or discharge will be documented in written form and will state the reason(s) for the action taken. The employee shall be provided with a copy of each such notice and a copy shall be retained in the employee's personnel file. The following are examples of disciplinary action but do not constitute an exclusive list of possibilities and may be taken in any order or not used at all. These examples and their descriptions are not intended to create a contract or obligation on management's part. A Oral reprimand. An oral notice advising an employee of inappropriate conduct and expected corrective action. B Written reprimand. A written notice advising an employee of inappropriate conduct. A written reprimand should describe in detail the behavior to be corrected, describe past actions taken by the supervisor to correct the problem, give direction and orders for the future including timetables and goals for improvement when appropriate, and specify consequences of repeating the inappropriate behavior. The employee will be given a copy of the reprimand and sign the original acknowledging receipt of the reprimand. The signature of the employee does not signify agreement with the reprimand. The reprimand will be placed in the employee's personnel file. C Prior to the suspension or as soon after as possible, the employee will be notified in writing of the reason for the suspension and its length. There are two forms of suspension: suspension as discipline and suspension pending investigation. An employee receiving a suspension as discipline may not be paid, may not accrue vacation, holiday or sick leave benefits during the suspension, and may not use paid time while suspended. An employee suspended pending investigation of allegations will have a copy of each written statement placed in the personnel file and will be paid during the investigation. If the allegations prove false, the statement will be removed. An employee placed on investigatory suspension should be notified as quickly as reasonably possible of the action taken regarding employment. D Demotion. Placement of an employee in a lower level position. E Discharge. The General Manager may discharge any employee, but if the employee has completed the probationary period, a dismissal will be made only for just cause. A dismissed employee will be notified by the previous posting of a summary of Minnesota Statute Sections 181.931 to 181.935 or by furnishing the terminated employee a copy of those statutes at termination that the employee has a right to make a written request for HUC reason for termination. If requested, HUC will provide reasons, in writing, within five working days. This notice will also contain a statement indicating that the employee may respond to the charges both orally and in writing and may appear personally before the official having authority to make or recommend the final decision. An adequate reason or "just cause" for a disciplinary action will include, but not be limited to, evidence of any of the following: A Incompetence or inefficiency in the performance of duties. B Negligence or carelessness in the performance of duty, such as in the handling or control of municipal property, equipment, or funds and failure to observe safety rules and regulations. C Offensive or inappropriate conduct or language toward Utilities employees or other persons. D Failure to obey any lawful and reasonable direction given by an employee's supervisor or the appointing authority. E Acceptance of a fee, gift, or other valuable item or benefit in the course of, or as a result of, the employee's work. This limitation is not intended to prohibit the acceptance of articles of negligible value, which are distributed generally, or to prohibit employees from accepting social courtesies, which promote good public relations. This prohibition is intended to prevent or discourage relationships, which may be construed as evidence of favoritism, coercion, unfair advantage, or collusion. Employees may accept food and refreshments in such instances as a luncheon, dinner meeting, or inspection tour in conjunction with HUC business. F Conviction of a crime, which affects or relates to the performance of assigned duties. G Using, threatening or attempting to use, political influence or unethical pressure to influence a decision on a promotion, transfer, leave of absence, increased compensation, other benefit, or any other matter in which the employee has an interest. Unethical pressure includes offers of gifts or other special benefits, coercion, collusion, threats of blackmail, requests for favoritism, and use of unfair advantage. H Absence from work without prior approval in accordance with this policy. I During assigned work schedules, (1) consuming or being under the influence of alcoholic beverages, (2) having the odor of an alcoholic beverage on the breath, or (3) consuming or being under the influence of a controlled substance, other than one prescribed by a physician, which does not impair the ability to perform assigned duties. J Tardiness or abuse of sick leave privileges. K Theft of public property, pilferage, or other unauthorized use or taking of property. L Sexual harassment. M Discrimination against or harassment of any HUC employee at any time, or any other person during work hours, based on race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, veterans status, disability, or age. N Performance of personal or other non-HUC work related matters during work hours. O Violation of the HUC's equal employment plan. P Engaging in a conflict of interest or performing public duties in a situation where the employee has a conflict of interest. Q Violations of the provisions of this Handbook and/or policies. R Horseplay, loafing or sleeping on the job. S Proven dishonesty in the performance of duties. T Acts or threats of physical violence directed toward HUC employees. U Unauthorized use or release of confidential, sensitive or privileged information. V As a supervisor, knowingly permitting another employee to violate this policy or other work rules. W Acting or failing to act in a manner not otherwise specified that tends to lower discipline or morale among HUC employees, brings or tends to bring discredit to the HUC, its employees, or that adversely affects the prompt, courteous and efficient provisions of public services. Freedom of speech protected by the First Amendment shall not be a basis for discipline. X Unauthorized possession or use of firearms or hazardous materials on HUC time or property. Y Refusal, during working hours, to submit to a Breathalyzer or other drug test required by law. CONFLICT OF INTEREST Employees must notify their Director or Manager of any direct or indirect financial interest they have in any contract with HUC, any interest they have in a contractor supplying HUC, or any such interest they may have with any entity competing with HUC, and all such notifications shall be forwarded to the General Manager. Employees who do not report to a Director or Manager shall directly notify the General Manager. Any employee with such a financial interest may not work on any HUC project or make any decision concerning an HUC project involving the employee's outside financial interest, unless the interest has been disclosed, and deemed acceptable by HUC management. INTELLECTUAL PROPERTY Assignment: All inventions that are: (a) developed using equipment, supplies, facilities or trade secrets of HUC; or (b) result from work performed by an employee of HUC; or (c) relate to the HUC's current or anticipated business and business models, will be the HUC's sole and exclusive property and are hereby assigned by the employee to HUC. If necessary, the employee will assist HUC in the prosecution and issuance of patents, copyrights and other proprietary rights necessary to protect inventions that are developed. Disclosure: While employed by HUC, the employee will promptly inform HUC of the full details of all inventions, discoveries, improvements and innovations, whether or not patentable, copyrightable or otherwise protectable, that the employee conceives, completes or reduces to practice (whether jointly or with others) and which: (a) relate to HUC's present or prospective business, or actual or anticipated business and business models; or (b) result from any work that the employee does using any equipment, facilities, materials, trade secrets or personnel of HUC; or (c) result from, or are suggested by, any work that the employee may do for HUC. The employee will inform HUC within 30 days of the adoption of this policy of all previous inventions, improvements or discoveries actually made or copyright registration or patent applications filed prior to the incorporation of this policy. Inventions, improvements or discoveries not made known to HUC within 30 days of the adoption of this policy shall be deemed to have been made while this policy was in effect. Confidentiality: From time to time, HUC may develop, and employees may have exposure to, formulas, programs, devices, techniques or processes that have been designated by HUC as confidential or proprietary information of HUC. The employee shall not directly or indirectly disclose, furnish, or make accessible to any person or other entity any confidential or proprietary information of HUC that the employee developed or obtained while the employee was employed by HUC. As required by Minnesota law, this policy does not apply to an invention for which no equipment, supplies, facility or trade secret information of HUC was used and which was developed entirely on the employee's own time and (1) does not relate (a) directly to the business of HUC or (b) to HUC's actual or demonstrably anticipated research or development, or (2) which does not result from any work performed by the employee for HUC. OTHER EMPLOYMENT An employee's position at HUC must take precedence over any other job an employee holds. Employees must inform their Director or Manager of any work they perform for profit outside of HUC's position to ensure there is no conflict of interest between the HUC job and the outside employment, and all such notifications shall be forwarded to the General Manager. Employees who do not report to a Director or Manager shall directly inform the General Manager. Also, employees are expected to be mentally alert and physically able to perform their Utility jobs. Employees may not work on their outside employment while on duty with HUC nor may any HUC property or equipment be used to conduct such business at any time. LICENSE REQUIREMENTS FOR UTILITY VEHICLE OPERATION Prior to hire date as an WC employee, the candidate's driving record is evaluated and must be approved. This is a condition of employment if operation of a vehicle is an essential part of an employee's job. An employee whose job requires operating a motor vehicle must possess a valid Minnesota Driver's License with necessary endorsements in order to conduct WC business. If an employee's driver's license is suspended, revoked, or cancelled during employment with WC, the employee must immediately inform the employee's Director, Manager or Supervisor who must inform the General Manager. The General Manager shall take appropriate action up to and including discharge. SMOKING The HUC observes and supports the Minnesota Clean Indoor Air Act. All HUC buildings and vehicles, in their entirety, shall be designated as tobacco free, meaning that smoking in any form (through the use of tobacco products (pipes, cigars and cigarettes) or "vaping" with e-cigarettes is prohibited while in a HUC facility or vehicle. Smoking of any kind, including pipes, cigars, cigarettes, vaping with e-cigarettes and the use of chewing tobacco is prohibited for employees while on duty. Employees 18 and over are allowed to smoke only during their breaks and lunch, and only in areas designated for that purpose. Per City of Hutchinson ordinance, smoking is prohibited in public places and places of work and within 15 feet of entrances, exists, open windows and ventilation intakes of public places and places of work. ALCOHOL OR DRUGS Possession or consumption of alcohol or controlled substances is prohibited while on -duty or on/in any HUC equipment or property. An employee who reports to work incapacitated or whose performance is impaired through the use of alcohol or controlled substances is subject to disciplinary action up to and including discharge. All HUC employees required to maintain a Commercial Driver's License (CDL), and/or perform a maintenance or emergency function on a natural gas pipeline regulated by 49 CFR Parts 192, 193 or 195 must comply with the Total Compliance Solutions Drug and Alcohol Plan as administered by HUC. VIOLENCE IN THE WORKPLACE HUC strives to ensure a healthy and productive working environment. In that regard, safety and security are of the utmost importance. HUC will enforce zero tolerance for any acts of physical assault or threats of bodily harm in the performance of work duties, wherever those duties are performed. Policy on Violence HUC views aggressive and/or violent behavior as disruptive and contrary to the development and maintenance of a safe, productive and supportive work environment. Such behavior is not tolerated. Employees who exhibit such behavior will be held accountable under the policy and work rules, as well as local, state, and federal law. All threats and acts of aggression or violent behavior should be taken seriously and addressed immediately. Such threats or acts include, but are not limited to: • Harming or threatening to harm any employee or visitor; • Damaging or threatening to damage property or the property of any employee or visitor; • Unlawfully possessing a firearm, ammunition, weapon or incendiary device on HUC property, vehicles, construction sites or while attending HUC business -related activities off site; • Engaging in stalking behavior of any employee. Accountability All personnel are responsible for notifying their immediate supervisor, or in the absence of their supervisor, another member of the management staff of any threats that they have witnessed, received, or have been told that another person has witnessed or received. Even without an actual threat, personnel should also report any behavior they have witnessed which they regard as threatening or violent, when that behavior is job related or might be carried out on a public site, or is connected to municipal employment. Employees are responsible for making this report regardless of the relationship between the aggressor and the individual to whom the threat or threatening behavior was directed. Directive Any person who makes substantial threats, exhibits threatening behavior, or engages in violent acts against employees, visitors, guests, or other individuals while on HUC property shall be removed from the premises as quickly as safety permits and shall remain off HUC premises pending the outcome of an investigation. Law enforcement should be utilized to remove individuals who are perceived as a threat. HUC will initiate an appropriate response which may include, but is not limited to, suspension and/or termination of any business relationship, reassignment of job duties, suspension or termination of employment and/or criminal prosecution of the person or persons involved. Employees and supervisors should work together to identify and report situations or locations where there is a potential for physical assault or threat of bodily harm. Employees should record specific incidents, behaviors or conversations that may indicate a potential for violence. Documentation should be forwarded to their Manager/Director. In instances where their supervisor is the source of potential violence, documentation should be forwarded to the next level of management with a copy to Human Resources. Supervisors must carefully review and assess information provided by employees or other sources. Appropriate precautions should be taken based on the specific situation. For example: If a problem situation or location is identified, it should be communicated to other employees who are likely to become involved in the situation or come in contact with the location. Individuals applying for a restraining order must provide their supervisor and Human Resources with a copy of the petition used to seek the order, and a copy of any temporary and permanent protective restraining order which is subsequently granted. Human Resources will monitor and evaluate the violence reports on an ongoing basis and will submit program reports to the General Manager when requested. OFFENSIVE BEHAVIOR/SEXUAL HARASSMENT It is HUC's policy to maintain a work environment free from offensive behavior and sexual harassment. Offensive behavior may include such actions as: rudeness, angry outbursts, inappropriate humor, vulgar obscenities, name calling, disrespectful language, or any other behavior regarded as offensive to a reasonable person. A violation of this policy is subject to discipline up to and including discharge. One specific kind of illegal behavior is sexual harassment. Sexual harassment includes unwelcome sexual advances, requests for sexual favors, sexually motivated physical conduct or other verbal or physical conduct or communication of a sexual nature when: 1. submission to that conduct or communication is made a term or condition of obtaining employment; or 2. submission to or rejection of that conduct or communication by an individual is used as a factor in a decision affecting that individual's employment; or 3. that conduct or communication has the purpose or effect of substantially interfering with an individual's employment or creating an intimidating, hostile, or offensive employment environment. Examples of conduct that violate this policy include, but are not limited to: • Repeated offensive sexual flirtations, unwelcome advances, propositions or invitations; or • Unwelcome repeated comments, jokes, displays, or suggestions of a sexual nature; or • Objectionable physical contact, including touching • In summary, sexual harassment is the unwanted, unwelcome and repeated action of an individual against another individual, using sexual overtones as a means of creating stress. Any employee who feels he/she is being subjected to offensive or discriminatory behavior of any kind or employees who are aware of such behavior is/are encouraged to express their objection to the behavior and should also immediately report the behavior to their immediate Supervisor, Department Manager or Director (if not the immediate supervisor), the Human Resources Director, or the General Manager. In addition, the employee may also file a complaint with the Minnesota Department of Human Rights and the EEOC. A person must file a complaint with the Minnesota Department of Human Rights within one year of the incident and file a complaint with the EEOC within 300 days of the incident. Staff Personnel who receives an offensive behavior or discrimination complaint shall inform the General Manager and Human Resources of the complaint as soon as possible. The General Manager must ensure an appropriate and prompt investigation of the complaint. If the investigation substantiates the complaint, HUC will take appropriate corrective action. Strict confidentiality is not possible in all cases of sexual harassment as the accused has the right to answer charges made against them; particularly if discipline is a possible outcome. Reasonable efforts will be made to respect the confidentiality of the individuals involved, to the extent possible. Any employee who makes a false complaint or provides false information during an investigation may be subject to disciplinary action, up to and including termination. Retaliation against any person who files a complaint or participates in an investigation is expressly prohibited. Retaliation includes, but is not limited to, any form of intimidation, reprisal or harassment. Any individual who retaliates against a person who testifies, assists, or participates in an investigation may be subject to disciplinary action up to and including termination. RETIREMENT Any employee who elects to retire shall give the Employer sixty (60) days' written notice of date that employee intends to retire. RESIGNATION Employees leaving employment with HUC in good standing will be paid any accrued unused vacation. To leave employment in good standing, an employee should provide written notice of resignation to Supervisor or Manager at least 10 working days prior to the resignation effective date. The General Manager may waive this requirement for good cause. A terminating employee must also return all HUC property, and equipment including keys, security devices, clothing and small hand tools provided by HUC. SOLICITATION ON UTILITY PREMISES Salespersons offering merchandise not related to HUC business are prohibited from soliciting during normal business hours. Employees are discouraged from soliciting other employees. Brochures and/or pamphlets are allowed to be put out in the breakroom for voluntary participation. Employees shall not provide another employee's contact information to a salesperson without the employee's consent. EMPLOYEE GIFTS Employees are not required to make a contribution for a gift or grant a favor for another employee. FLOWERS In the event of the death of a full-time or part-time employee or employee's immediate family, flowers/plant will be sent at HUC expense without delay to the appropriate funeral home. Information needed: Funeral Home Address Date to Send Flowers Similar consideration may be given, at the discretion of the General Manager, Directors, or Managers, for retirees, consultants, Commission members or others who provide significant service to HUC. PETTY CASH Petry cash funds are kept with the Accountant. The petty cash fund will be used to reimburse payment up to $25.00. Any expenditure over $25.00 will be reimbursed by check. Itemized receipts mustbe attached to a complete petty cash slip whenever possible. An employee may obtain an advance of petty cash by completing a petty cash slip and reconciling the advance with the actual amount as soon as possible. Non -Exempt SECTION 2 — ADMINISTRATION OF PERSONNEL POLICIES The Commission approves personnel policies intending uniform administration of personnel matters of the Utilities. The Commission may supplement, amend and/or rescind the policies to assure that they will remain practical, useful and current. In approving personnel policies, the Commission has made every effort to be as reasonable and practical as possible. Final responsibility for the enforcement of the policies shall rest with the Commission. The Commission however, has delegated to the General Manager the responsibility and authority for the enforcement of all personnel policies. The General Manager, in turn, delegates certain responsibilities and authority to the Staff as deemed advisable in order to carry out the personnel policies. The General Manager, however, remains accountable to the Commission. If the Commission has not clearly delegated its authority in a certain manner, the Commission retains authority to determine the appropriate action. These personnel policies govern all Utilities employees and apply to all cases except where a policy contained herein conflicts with a Union Contract, or other employment contract, or past practice, in which case the Union Contract, or other employment contract, or past practice, shall govern. SAVINGS CLAUSE If any provision of this Handbook is declared by proper legislative, administrative or judicial authority to be unlawful, unenforceable or not in accordance with applicable Civil Service rules, or law, all other provisions of this Handbook shall remain in full force and effect for the duration of this Handbook. EQUAL EMPLOYMENT OPPORTUNITY HUC is committed to providing equal opportunity in all areas of employment, including, but not limited to recruitment, hiring, demotion, promotion, transfer, recruitment, selection, lay-off, disciplinary action, termination, compensation and selection for training. In accordance with Minnesota State Statute 363A, HUC will not discriminate against any employee or job applicant on the basis of race, color, creed, religion, national origin, ancestry, sex, sexual orientation, disability, age, marital status, genetic information, status with regard to public assistance, veteran status, familial status, or local human rights commission activity. PROBATIONARY PERIOD UPON HIRING A newly hired non-exempt employee shall serve a six (6) month probationary period during which the employee shall have the opportunity to demonstrate abilities and work performance. During this qualifying period, the Director, Manager or Supervisor should discuss with the employee, the employee's progress in becoming fully acquainted with the job and co-workers. The General Manager can terminate a probationary employee's employment without notice and without cause at any time during the probationary period. The General Manager may choose to extend an employee's probation period up to a maximum of three months. New full-time employees are required to sign the acknowledgement in Appendix B when they begin employment. TEMPORARY EMPLOYEES Temporary employees are required to sign the acknowledgement in Appendix C when they begin employment. The General Manager must approve employment of a temporary worker for longer than 14 consecutive weeks. The responsible Director or Manager must inform the General Manager of the desire to employ a temporary worker longer than 14 weeks. PROMOTIONS AND TRANSFERS HUC encourages individual advancement by providing opportunities for promotion and transfer as positions become available. Job vacancies shall be posted ten (10) working days. Employees desiring to be considered for the position must provide a letter of interest to the appropriate staff person by the deadline stated on the posting. All promoted and transferred employees shall serve a six (6) month trial period during which time the promoted or transferred employee may be placed back in the employee's previous job classification if a position is available and at the sole discretion of the Employer, without loss of seniority. We encourage employees to discuss their career plans and goals with their Director or Manager. LAYOFFS HUC retains its right to eliminate positions within the organization if the Commission deems it appropriate to do so. If a layoff occurs, HUC will provide four weeks' notice to affected employees. Layoffs will be based on the Utility's skill and knowledge needs and also employee's seniority. VOLUNTARY LEAVE OF ABSENCE HUC may request employees to voluntarily take a leave of absence without pay for a specified period of time. EMPLOYMENT OF RELATIVES No applicant or employee shall receive preferential consideration because of his/her relationship to an HUC employee, a Commission member, a Hutchinson City Council member or other City employees and officials. Any HUC employee who extends such preferential treatment is subject to discipline. Immediate family members may be employed by HUC provided there is no direct report relationship. No member of the immediate family of the General Manager or of a current member of the Commission may be employed by HUC. A former Commission member may not be hired as an employee of HUC for two years after the end of the Commissioner's term in office. COMPLAINT/GRIEVANCE PROCEDURE See Union Contract. EMPLOYEE CONDUCT All HUC employees are expected to conduct themselves in a manner that creates a work environment enabling employees to work effectively and to promote positive customer relations. HUC employees are required to adhere to the following standards of conduct while on the job. • To behave in a courteous, business -like manner and to comply with HUC policies and work rules. • Refrain from any and all action, which may be detrimental to the safety or work of other employees or to the goals of HUC. • To communicate openly and honestly with management, other employees, and the public. • To share responsibility for personal development and growth. • To continually strive for excellence in work product and habits. DISCIPLINE In general, HUC employees shall be subject to disciplinary action for failing to fulfill their duties and responsibilities, including observance of work rules approved by the Commission. It is the policy of the Commission to administer discipline fairly, without discrimination, and for just cause. The employee may use the grievance procedure with respect to any disciplinary action believed to be unjust or disproportionate to the alleged offense. The General Manager, Director or Manager shall investigate any allegation on which disciplinary action might be based before disciplinary action is taken. The Commission supports the concept of progressive discipline but expressly reserves the right to impose various levels of discipline depending on the nature of the offense. Staff Personnel may impose oral and written reprimands, and may send an employee home for the remainder of a shift without pay. Only the General Manager may impose a suspension without pay, letter in lieu of suspension, demotion, or discharge. Notices of oral reprimand, written reprimand, suspension without pay, demotion, or discharge will be documented in written form and will state the reason(s) for the action taken. The employee shall be provided with a copy of each such notice and a copy shall be retained in the employee's personnel file. The following are examples of disciplinary action but do not constitute an exclusive list of possibilities and may be taken in any order or not used at all. These examples and their descriptions are not intended to create a contract or obligation on management's part. A Oral reprimand. An oral notice advising an employee of inappropriate conduct and expected corrective action. B Written reprimand. A written notice advising an employee of inappropriate conduct. A written reprimand should describe in detail the behavior to be corrected, describe past actions taken by the supervisor to correct the problem, give direction and orders for the future including timetables and goals for improvement when appropriate, and specify consequences of repeating the inappropriate behavior. The employee will be given a copy of the reprimand and sign the original acknowledging receipt of the reprimand. The signature of the employee does not signify agreement with the reprimand. The reprimand will be placed in the employee's personnel file. C Prior to the suspension or as soon after as possible, the employee will be notified in writing of the reason for the suspension and its length. There are two forms of suspension: suspension as discipline and suspension pending investigation. An employee receiving a suspension as discipline may not be paid, may not accrue vacation, holiday or sick leave benefits during the suspension, and may not use paid time while suspended. An employee suspended pending investigation of allegations will have a copy of each written statement placed in the personnel file and will be paid during the investigation. If the allegations prove false, the statement will be removed. An employee placed on investigatory suspension should be notified as quickly as reasonably possible of the action taken regarding employment. D Demotion. Placement of an employee in a lower level position. E Discharge. The General Manager may discharge any employee, but if the employee has completed the probationary period, a dismissal will be made only for just cause. A dismissed employee will be notified by the previous posting of a summary of Minnesota Statute Sections 181.931 to 181.935 or by furnishing the terminated employee a copy of those statutes at termination that the employee has a right to make a written request for HUC reason for termination. If requested, HUC will provide reasons, in writing, within five working days. This notice will also contain a statement indicating that the employee may respond to the charges both orally and in writing and may appear personally before the official having authority to make or recommend the final decision. An adequate reason or "just cause" for a disciplinary action will include, but not be limited to, evidence of any of the following: A Incompetence or inefficiency in the performance of duties. B Negligence or carelessness in the performance of duty, such as in the handling or control of municipal property, equipment, or funds and failure to observe safety rules and regulations. C Offensive or inappropriate conduct or language toward Utilities employees or other persons. D Failure to obey any lawful and reasonable direction given by an employee's supervisor or the appointing authority. E Acceptance of a fee, gift, or other valuable item or benefit in the course of, or as a result of, the employee's work. This limitation is not intended to prohibit the acceptance of articles of negligible value, which are distributed generally, or to prohibit employees from accepting social courtesies, which promote good public relations. This prohibition is intended to prevent or discourage relationships, which may be construed as evidence of favoritism, coercion, unfair advantage, or collusion. Employees may accept food and refreshments in such instances as a luncheon, dinner meeting, or inspection tour in conjunction with HUC business. F Conviction of a crime, which affects or relates to the performance of assigned duties. G Using, threatening or attempting to use, political influence or unethical pressure to influence a decision on a promotion, transfer, leave of absence, increased compensation, other benefit, or any other matter in which the employee has an interest. Unethical pressure includes offers of gifts or other special benefits, coercion, collusion, threats of blackmail, requests for favoritism, and use of unfair advantage. H Absence from work without prior approval in accordance with this policy. I During assigned work schedules, (1) consuming or being under the influence of alcoholic beverages, (2) having the odor of an alcoholic beverage on the breath, or (3) consuming or being under the influence of a controlled substance, other than one prescribed by a physician, which does not impair the ability to perform assigned duties. J Tardiness or abuse of sick leave privileges. K Theft of public property, pilferage, or other unauthorized use or taking of property. L Sexual harassment. M Discrimination against or harassment of any HUC employee at any time, or any other person during work hours, based on race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, veterans status, disability, or age. N Performance of personal or other non-HUC work related matters during work hours. O Violation of the HUC's equal employment plan. P Engaging in a conflict of interest or performing public duties in a situation where the employee has a conflict of interest. Q Violations of the provisions of this Handbook and/or policies. R Horseplay, loafing or sleeping on the job. S Proven dishonesty in the performance of duties. T Acts or threats of physical violence directed toward HUC employees. U Unauthorized use or release of confidential, sensitive or privileged information. V As a supervisor, knowingly permitting another employee to violate this policy or other work rules. W Acting or failing to act in a manner not otherwise specified that tends to lower discipline or morale among HUC employees, brings or tends to bring discredit to the HUC, its employees, or that adversely affects the prompt, courteous and efficient provisions of public services. Freedom of speech protected by the First Amendment shall not be a basis for discipline. X Unauthorized possession or use of firearms or hazardous materials on HUC time or property. Y Refusal, during working hours, to submit to a Breathalyzer or other drug test required by law. CONFLICT OF INTEREST Employees must notify their Director or Manager of any direct or indirect financial interest they have in any contract with HUC, any interest they have in a contractor supplying HUC, or any such interest they may have with any entity competing with HUC, and all such notifications shall be forwarded to the General Manager. Any employee with such a financial interest may not work on any HUC project or make any decision concerning an HUC project involving the employee's outside financial interest, unless the interest has been disclosed, and deemed acceptable by HUC management. OTHER EMPLOYMENT An employee's position at HUC must take precedence over any other job an employee holds. Employees must inform their Director or Manager of any work they perform for profit outside of HUC's position to ensure there is no conflict of interest between the HUC job and the outside employment. All such notifications shall be forwarded to the General Manager. Also, employees are expected to be mentally alert and physically able to perform their Utility jobs. Employees may not work on their outside employment while on duty with HUC nor may any HUC property or equipment be used to conduct such business at any time. LICENSE REQUIREMENTS FOR UTILITY VEHICLE OPERATION Prior to hire date as an HUC employee, the candidate's driving record is evaluated and must be approved. This is a condition of employment if operation of a vehicle is an essential part of an employee's job. An employee whose job requires operating a motor vehicle must possess a valid Minnesota Driver's License with necessary endorsements in order to conduct WC business. If an employee's driver's license is suspended, revoked, or cancelled during employment with WC, the employee must immediately inform the employee's Director, Manager or Supervisor who must inform the General Manager. The General Manager shall take appropriate action up to and including discharge. SMOKING The HUC observes and supports the Minnesota Clean Indoor Air Act. All HUC buildings and vehicles, in their entirety, shall be designated as tobacco free, meaning that smoking in any form (through the use of tobacco products (pipes, cigars and cigarettes) or "vaping" with e-cigarettes is prohibited while in a HUC facility or vehicle. Smoking of any kind, including pipes, cigars, cigarettes, vaping with e-cigarettes and the use of chewing tobacco is prohibited for employees while on duty. Employees 18 and over are allowed to smoke only during their breaks and lunch, and only in areas designated for that purpose. Per City of Hutchinson ordinance, smoking is prohibited in public places and places of work and within 15 feet of entrances, exists, open windows and ventilation intakes of public places and places of work. ALCOHOL OR DRUGS Possession or consumption of alcohol or controlled substances is prohibited while on -duty or on/in any HUC equipment or property. An employee who reports to work incapacitated or whose performance is impaired through the use of alcohol or controlled substances is subject to disciplinary action up to and including discharge. All HUC employees required to maintain a Commercial Driver's License (CDL), and/or perform a maintenance or emergency function on a natural gas pipeline regulated by 49 CFR Parts 192, 193 or 195 must comply with the Total Compliance Solutions Drug and Alcohol Plan as administered by HUC VIOLENCE IN THE WORKPLACE HUC strives to ensure a healthy and productive working environment. In that regard, safety and security are of the utmost importance. HUC will enforce zero tolerance for any acts of physical assault or threats of bodily harm in the performance of work duties, wherever those duties are performed. Policy on Violence HUC views aggressive and/or violent behavior as disruptive and contrary to the development and maintenance of a safe, productive and supportive work environment. Such behavior is not tolerated. Employees who exhibit such behavior will be held accountable under the policy and work rules, as well as local, state, and federal law. All threats and acts of aggression or violent behavior should be taken seriously and addressed immediately. Such threats or acts include, but are not limited to: • Harming or threatening to harm any employee or visitor; • Damaging or threatening to damage property or the property of any employee or visitor; • Unlawfully possessing a firearm, ammunition, weapon or incendiary device on HUC property, vehicles, construction sites or while attending HUC business -related activities off site; • Engaging in stalking behavior of any employee. Accountability All personnel are responsible for notifying their immediate supervisor, or in the absence of their supervisor, another member of the management staff of any threats that they have witnessed, received, or have been told that another person has witnessed or received. Even without an actual threat, personnel should also report any behavior they have witnessed which they regard as threatening or violent, when that behavior is job related or might be carried out on a public site, or is connected to municipal employment. Employees are responsible for making this report regardless of the relationship between the aggressor and the individual to whom the threat or threatening behavior was directed. Directive Any person who makes substantial threats, exhibits threatening behavior, or engages in violent acts against employees, visitors, guests, or other individuals while on HUC property shall be removed from the premises as quickly as safety permits and shall remain off HUC premises pending the outcome of an investigation. Law enforcement should be utilized to remove individuals who are perceived as a threat. HUC will initiate an appropriate response which may include, but is not limited to, suspension and/or termination of any business relationship, reassignment of job duties, suspension or termination of employment and/or criminal prosecution of the person or persons involved. Employees and supervisors should work together to identify and report situations or locations where there is a potential for physical assault or threat of bodily harm. Employees should record specific incidents, behaviors or conversations that may indicate a potential for violence. Documentation should be forwarded to their Manager/Director. In instances where their supervisor is the source of potential violence, documentation should be forwarded to the next level of management with a copy to Human Resources. Supervisors must carefully review and assess information provided by employees or other sources. Appropriate precautions should be taken based on the specific situation. For example: If a problem situation or location is identified, it should be communicated to other employees who are likely to become involved in the situation or come in contact with the location. Individuals applying for a restraining order must provide their supervisor and Human Resources with a copy of the petition used to seek the order, and a copy of any temporary and permanent protective restraining order which is subsequently granted. Human Resources will monitor and evaluate the violence reports on an ongoing basis and will submit program reports to the General Manager when requested. OFFENSIVE BEHAVIOR/SEXUAL HARASSMENT It is HUC's policy to maintain a work environment free from offensive behavior and sexual harassment. Offensive behavior may include such actions as: rudeness, angry outbursts, inappropriate humor, vulgar obscenities, name calling, disrespectful language, or any other behavior regarded as offensive to a reasonable person. A violation of this policy is subject to discipline up to and including discharge. One specific kind of illegal behavior is sexual harassment. Sexual harassment includes unwelcome sexual advances, requests for sexual favors, sexually motivated physical conduct or other verbal or physical conduct or communication of a sexual nature when: 4. submission to that conduct or communication is made a term or condition of obtaining employment; or 5. submission to or rejection of that conduct or communication by an individual is used as a factor in a decision affecting that individual's employment; or 6. that conduct or communication has the purpose or effect of substantially interfering with an individual's employment or creating an intimidating, hostile, or offensive employment environment. Examples of conduct that violate this policy include, but are not limited to: • Repeated offensive sexual flirtations, unwelcome advances, propositions or invitations; or • Unwelcome repeated comments, jokes, displays, or suggestions of a sexual nature; or • Objectionable physical contact, including touching • In summary, sexual harassment is the unwanted, unwelcome and repeated action of an individual against another individual, using sexual overtones as a means of creating stress. Any employee who feels he/she is being subjected to offensive or discriminatory behavior of any kind or employees who are aware of such behavior is/are encouraged to express their objection to the behavior and should also immediately report the behavior to their immediate Supervisor, Department Manager or Director (if not the immediate supervisor), the Human Resources Director, or the General Manager. In addition, the employee may also file a complaint with the Minnesota Department of Human Rights and the EEOC. A person must file a complaint with the Minnesota Department of Human Rights within one year of the incident and file a complaint with the EEOC within 300 days of the incident. Staff Personnel who receives an offensive behavior or discrimination complaint shall inform the General Manager and Human Resources of the complaint as soon as possible. The General Manager must ensure an appropriate and prompt investigation of the complaint. If the investigation substantiates the complaint, HUC will take appropriate corrective action. Strict confidentiality is not possible in all cases of sexual harassment as the accused has the right to answer charges made against them; particularly if discipline is a possible outcome. Reasonable efforts will be made to respect the confidentiality of the individuals involved, to the extent possible. Any employee who makes a false complaint or provides false information during an investigation may be subject to disciplinary action, up to and including termination. Retaliation against any person who files a complaint or participates in an investigation is expressly prohibited. Retaliation includes, but is not limited to, any form of intimidation, reprisal or harassment. Any individual who retaliates against a person who testifies, assists, or participates in an investigation may be subject to disciplinary action up to and including termination. RETIREMENT Any employee who elects to retire shall give the Employer sixty (60) days' written notice of date that employee intends to retire. RESIGNATION Employees leaving employment with HUC in good standing will be paid any accrued unused vacation. To leave employment in good standing, an employee should provide written notice of resignation to Supervisor or Manager at least 10 working days prior to the resignation effective date. The General Manager may waive this requirement for good cause. A terminating employee must also return all HUC property, and equipment including keys, security devices, clothing and small hand tools provided by HUC. SOLICITATION ON UTILITY PREMISES Salespersons offering merchandise not related to HUC business are prohibited from soliciting during normal business hours. Employees are discouraged from soliciting other employees. Brochures and/or pamphlets are allowed to be put out in the breakroom for voluntary participation. Employees shall not provide another employee's contact information to a salesperson without the employee's consent. EMPLOYEE GIFTS Employees are not required to make a contribution for a gift or grant a favor for another employee. FLOWERS In the event of the death of a full-time or part-time employee, or employee's immediate family, flowers/plant will be sent at HUC expense without delay to the appropriate funeral home. Information needed: Funeral Home Address Date to Send Flowers Similar consideration may be given, at the discretion of the General Manager, Directors, or Managers, for retirees, consultants, Commission members or others who provide significant service to HUC. PETTY CASH Petry cash funds are kept with the Accountant. The petty cash fund will be used to reimburse payment up to $25.00. Any expenditure over $25.00 will be reimbursed by check. Itemized receipts mustbe attached to a complete petty cash slip whenever possible. An employee may obtain an advance of petty cash by completing a petty cash slip and reconciling the advance with the actual amount as soon as possible. ,c��,« HUTCHINSON UTILITIES COMMISSION Board Action Form f tit W Agenda Item: Approve Policy Changes Presenter: Angie Radke Agenda Item Type: Time Requested (Minutes): 5 Approve Policy Changes Attachments: Yes 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. i. Hiring — Exempt and Non -Exempt ii. Probationary Period Upon Hiring — Exempt iii. Membership/Dues/Conventions — Exempt iv. Data Practices Advisory — Exempt and Non -Exempt V. Complaint/Grievance Procedure — Exempt vi. Safety Glasses — Non -Exempt BOARD ACTION REQUESTED: Approve Policy Changes Fiscal Impact: Included in current budget: BudgetChange: PROJECT SECTION: Total Project Cost: Remaining Cost: EXEMPT HIRING It is the Commission's policy to hire qualified applicants through internal employee promotion and external recruitment if appropriate. The General Manager has the authority to hire all employees and must approve all hiring recommendations. Final interviews for the General Manager position will be conducted by the Commissioner Board with the assistance of the Coordi ria:a:or. Final interviews for Director positions will be conducted by the General Manager, President of the Commission and 1 nay i .�:. i i m �i �. ��4ma. <�:a: v ;/ i l . Coordi rl<ba:or. PROBATIONARY PERIOD UPON HIRING A newly hired exempt employee shall serve a f.4+e-+4) six (6) month probationary period during which the employee shall have the opportunity to demonstrate abilities and work performance. During this qualifying period, the Director, Manager or Supervisor should discuss with the employee, the employee's progress in becoming fully acquainted with the j ob and co-workers. The General Manager can terminate a probationary employee's employment without notice and without cause at any time during the probationary period. The General Manager may choose to extend an employee's probation period up to a maximum of three months. New full-time employees are required to sign the acknowledgement in Appendix B when they begin employment. MEMBERSHIP/DUES/CONVENTIONS Employees are encouraged to join and participate in professional and technical associations, which are expected to enhance job performance. HUC will pay the association dues if membership relates directly to an employee's job with RUC. The appropriate Staff Personnel must approve payment of membership dues. The General Manager must approve attendance at association meetings, corlfererlces,, and/or conventions. HUC will pay the attendance fee for pre -approved meetings and expenses incurred. DATA PRACTICES ADVISORY Employee records are maintained by 1tn) -fi--i Coordiria:a:or. Personnel data is retained in personnel files, finance files, and benefit/medical files. Information is used to administer employee salary and benefit programs, process payroll, complete state and federal reports, document employee performance, etc. Employees have the right to know what data is retained, where it is kept, and how it is used. All employee data will be received, retained, and disseminated according to the Minnesota Government Data Practices Act. Media Requests: All HUC employees have a responsibility to help communicate accurate and timely information to the public in a professional manner. Requests for private data or information outside of the scope of an individual's job duties should be routed to the appropriate department. Any employee who identifies a mistake in reporting should bring the error to the General Manager or other appropriate staff. Regardless of whether the communication is in the employee's official utilities role or in a personal capacity, employees must comply with all laws related to trademark, copyright, software use, etc. With the exception of routine events and basic information that is readily available to the public, all requests for interviews or information from the media are to be routed through the General Manager. No HUC employee is authorized to speak on behalf of HUC without prior authorization from the General Manager or his designee. Media requests include anything intended to be published or viewable to others in some form such as television, radio, newspapers, newsletters, social media sites, and web sites. When responding to media requests, employees should follow these steps: 1. If the request is for routine or public information (such as a meeting time or agenda) provide the information and notify the General Manager of the request. 2. If the request is regarding information about HUC personnel, potential litigation, controversial issues, an opinion on a HUC matter, or if an employee is unsure if the request is a "routine" question, forward the request to the General Manager. An appropriate response would be "I'm sorry, I don't have the full information regarding that issue. Let me take some basic information and submit your request to the appropriate person who will get back to you as soon as he/she can." Then ask the media representative's name, questions, deadline and contact information. All news releases concerning HUC personnel will be the responsibility of the General Manager. When/if the General Manager authorizes a staff person to communicate on behalf of HUC in interviews, publications, news releases, on social media sites, and related communications, employees must: ✓ Identify themselves as representing HUC. Account names on social media sites must be clearly connected to HUC and approved by the General Manager. ✓ All information must be respectful, professional and truthful. Corrections must be issued when needed. ✓ Personal opinions generally don't belong in official statements. One exception is communications related to promoting a service. ✓ Employees need to notify the General Manager if they will be using their personal technology (cell phones, home computer, cameras, etc.) for HUC business. Employees should be aware that the data transmitted or stored may be subject to the Data Practices Act. It is important for HUC employees to remember that the personal communications of employees may reflect on HUC, especially if employees are commenting on HUC business. The following guidelines apply to personal communications including various forms such as social media (Facebook, Twitter, blogs, YouTube, etc.), letters to the editor of newspapers, and personal endorsements. ✓ Remember that what you write is public, and will be so for a long time. It may also be spread to large audiences. Use common sense when using email or social media sites. It is a good idea to refrain from sending or posting information that you would not want your boss or other employees to read, or that you would be embarrassed to see in the newspaper. ✓ HUC expects its employees to be truthful, courteous and respectful towards supervisors, co-workers, citizens, customers and other persons associated with HUC. Do not engage in name-calling or personal attacks. ✓ If you publicize something related to HUC business, identify yourself and use a disclaimer such as, "I am an employee of HUC. However, these are my own opinions and do not represent those of HUC." ✓ HUC resources, working time, or official positions cannot be used for personal profit or business interests, or to participate in personal political activity. ✓ Personal social media account name or email names should not be tied to HUC. COMPLAINT/GRIEVANCE PROCEDURE It is the Commission's policy to provide an equitable process which employees may use to advance complaints and grievances. An employee may grieve any alleged violation of a written or verbal policy or procedure, disciplinary action other than an oral reprimand, or unsafe practice. Prior to initiating a grievance, an employee must discuss the complaint with the immediate Supervisor. If the complaint cannot be resolved informally through such discussion with the Director, Manager or Supervisor, the employee may choose to file a written grievance. The grievance must be bled with the Coordirl<ba:or within ten (10) working days after the incident -giving rise to the grievance. The Coordiriator shall attempt to resolve the grievance and shall provide the employee a written response no later than five (5) working days following receipt of the grievance. If the employee is dissatisfied with the Coordiria:a:or's response, the employee may file the grievance with the General Manager within five (5) days of the Coordiri<ba:or's, response. The General Manager shall attempt to resolve the complaint or grievance and shall provide the employee a written response not later than five (5) days following the receipt of the complaint. If dissatisfied with the General Manager's response, the employee may request a hearing on the grievance before the Hutchinson Utilities Commission. The Hutchinson Utilities Commission may choose to appoint an independent hearing officer to hear the grievance. An employee presenting a complaint or grievance shall not be subject to retaliation or reprisal. Non -Exempt HIRING It is the Commission's policy to hire qualified applicants through internal employee promotion and external recruitment if appropriate. The General Manager has the authority to hire all employees and must approve all hiring recommendations. Final interviews for the General Manager position will be conducted by the Commissioner Board with the assistance of the Coordi ria:a:or. Final interviews for Director positions will be conducted by the General Manager, President of the Commission and Coordi rl<ba:or. DATA PRACTICES ADVISORY Employee records are maintained by 1tn) -fi--i Coordiria:a:or. Personnel data is retained in personnel files, finance files, and benefit/medical files. Information is used to administer employee salary and benefit programs, process payroll, complete state and federal reports, document employee performance, etc. Employees have the right to know what data is retained, where it is kept, and how it is used. All employee data will be received, retained, and disseminated according to the Minnesota Government Data Practices Act. Media Requests: All HUC employees have a responsibility to help communicate accurate and timely information to the public in a professional manner. Requests for private data or information outside of the scope of an individual's job duties should be routed to the appropriate department. Any employee who identifies a mistake in reporting should bring the error to the General Manager or other appropriate staff. Regardless of whether the communication is in the employee's official utilities role or in a personal capacity, employees must comply with all laws related to trademark, copyright, software use, etc. With the exception of routine events and basic information that is readily available to the public, all requests for interviews or information from the media are to be routed through the General Manager. No HUC employee is authorized to speak on behalf of HUC without prior authorization from the General Manager or his designee. Media requests include anything intended to be published or viewable to others in some form such as television, radio, newspapers, newsletters, social media sites, and web sites. When responding to media requests, employees should follow these steps: 1. If the request is for routine or public information (such as a meeting time or agenda) provide the information and notify the General Manager of the request. 2. If the request is regarding information about HUC personnel, potential litigation, controversial issues, an opinion on a HUC matter, or if an employee is unsure if the request is a "routine" question, forward the request to the General Manager. An appropriate response would be "I'm sorry, I don't have the full information regarding that issue. Let me take some basic information and submit your request to the appropriate person who will get back to you as soon as he/she can." Then ask the media representative's name, questions, deadline and contact information. All news releases concerning HUC personnel will be the responsibility of the General Manager. When/if the General Manager authorizes a staff person to communicate on behalf of HUC in interviews, publications, news releases, on social media sites, and related communications, employees must: ✓ Identify themselves as representing HUC. Account names on social media sites must be clearly connected to HUC and approved by the General Manager. ✓ All information must be respectful, professional and truthful. Corrections must be issued when needed. ✓ Personal opinions generally don't belong in official statements. One exception is communications related to promoting a service. ✓ Employees need to notify the General Manager if they will be using their personal technology (cell phones, home computer, cameras, etc.) for HUC business. Employees should be aware that the data transmitted or stored may be subject to the Data Practices Act. It is important for HUC employees to remember that the personal communications of employees may reflect on HUC, especially if employees are commenting on HUC business. The following guidelines apply to personal communications including various forms such as social media (Facebook, Twitter, blogs, YouTube, etc.), letters to the editor of newspapers, and personal endorsements. ✓ Remember that what you write is public, and will be so for a long time. It may also be spread to large audiences. Use common sense when using email or social media sites. It is a good idea to refrain from sending or posting information that you would not want your boss or other employees to read, or that you would be embarrassed to see in the newspaper. ✓ HUC expects its employees to be truthful, courteous and respectful towards supervisors, co-workers, citizens, customers and other persons associated with HUC. Do not engage in name-calling or personal attacks. ✓ If you publicize something related to HUC business, identify yourself and use a disclaimer such as, "I am an employee of HUC. However, these are my own opinions and do not represent those of HUC." ✓ HUC resources, working time, or official positions cannot be used for personal profit or business interests, or to participate in personal political activity. ✓ Personal social media account name or email names should not be tied to HUC. 4 SAFETY GLASSES Employees must pay for their own eye examination (health insurance will generally cover 100% of examination expense). Any supplier who can provide certification that the prescri][.)tiori glasses meet OSHA saf'�.ty requirements may fill the prescription. I -MC, will reifi�btn-se ftfll-tiii�e eiiqfloyees t,I]r')to $115(,00, orice every 11 2 1m:)rolis, Cilasses, ][,)rografl�, forlm", arld verldol". HUTCHINSON UTILITIES COMMISSION��` Board Action Form �r�turscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: 2022 Distributed Energy Resources Generation Report Presenter: Dave Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The Law requires Municipal Utilities that have adopted Cogeneration policies to review annually all Net Energy billed qualifying facilities. HUC has 12 active Solar Cogneration facilities on our system. System 1----------- 400 KW Ground Mount System 2----------- 240 KW Roof Top System 3------------- 80 KW Roof Top System 4----------- 10 KW Roof Top System 5----------- 10 KW Roof Top System 6------------ 37 KW Roof Top System 7------------ 39 KW Roof Top System 8------------- 39 KW Roof Top System 9------------ 28 KW Roof Top System 10-----------27 KW Roof Top System 11----------- 7 KW Roof Top System 12----------- 625 KW Ground Mount HUC Owned Attached: HUC Cogeneration Policy HUC Cogeneration Rules HUC 2022 Active Coneneratmon Totals BOARD ACTION REQUESTED: None Fiscal Impact: NA Included in current budget: Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: Hutchinson Utilities Commission Policy Regarding Distributed Energy Resources and Net Metering To establish the application procedure and qualification criteria for all customers for the delivery, interconnection, metering and purchase of electricity from distributed energy resource facilities and to comply with applicable laws and rules governing distributed energy resources. The utility recognizes its obligation to provide interconnection to eligible qualifying facilities and will comply with all applicable laws and rules governing distributed energy resources. For purposes of this policy, the following terms have the meanings given them: A. Average retail energy rate - the average of the retail energy rates, exclusive of special rates based on income, age, or energy conservation, according to the applicable rate schedule of the utility for sales to the class of customer of which the customer/qualifying facility belongs. B. Avoided costs -the incremental costs to the utility of electric energy or capacity or both which, but for the purchase from the qualifying facility, the utility would generate itself or purchase from another source. C. Contract -the written agreement between the customer/qualifying facility and the utility, as established in the utility's Rules Governing Interconnection of Cogeneration and Small Power Production. D. Distributed energy resource (DER) - a distributed generation system incorporated with or without an electric storage system. E. Interconnection application - the form to be used by the customer to submit its formal request for interconnection to the utility and which shall be substantially similar in form to that contained in the Distributed Energy Resources Interconnection Process adopted by the utility. F. Interconnection rules - any applicable rules developed in accordance with Minnesota Statutes §§216B.164 and 216B.1611. This includes the utility's Rules Governing Interconnection of Cogeneration and Small Power Production. It also includes the utility's Distributed Energy Resources Interconnection Process which includes its Simplified Process, Fast Track Process, and Study Process as well as the technical requirements incorporated therein or any future technical requirements adopted by the utility. G. Measured capacity - for purposes of determining capacity, it shall be measured based on the highest fifteen (15) minute average demand of the unit in any one billing period. H. Net metering/net billing -the process whereby the customer and the utility compensate each other based on the difference in the amount of energy each sells to the other at the net metered facility. I. Net metered facility - an electric generation facility constructed for the purpose of offsetting energy use through the use of renewable energy or high efficiency generation sources with a capacity of less than 40 kilowatts that has elected in writing to be compensated for excess generation through net metering/net billing. J. Total generator nameplate capacity - the nominal voltage (V), current (A), maximum active power (kWac), apparent power (WA), and reactive power (kvar) at which a distributed energy resource (DER), is capable of sustained operation. For a qualifying facility with multiple units, the total generator capacity is equal to the sum of all individual DER units' nameplate rating in the qualifying facility. The DER system's total generation capacity may, with the utility's agreement, be limited thought use of control systems, power relays or similar device settings or adjustments as identified in IEEE 1547. The customer must fully, accurately and completely disclose in its interconnection application to the utility, the technical specifications for any capacity limiting device contemplated and the customer shall furnish the utility with any factory manuals or other similar documents requested from the utility regarding such limiting or other control devices which factor into the calculation of total generator capacity. K. Qualifying facility - a cogeneration or small power production facility which satisfies the conditions established in Code of Federal Regulations, title 18, part 292. The qualifying facility must be owned by a customer of the utility and located in the utility service area. L. Utility— Hutchinson Utilities Commission. In the event an inconsistency exists between terms in this policy and those established by applicable statute, rule or court order, then the definition so established shall supersede the definition used in this policy and shall govern. All customers are eligible for distributed generation, interconnection with the utility's distribution system and application of net metering upon the following terms and conditions. 1. The customer must meet the eligibility requirements set forth in the federal Public Utility Regulatory Policies Act of 1978 (PURPA) *18 C.F.R. 292.303, 292.304 and Minnesota's distributed generation laws. Minn. Stat. §216B.164. 2. The customer shall complete, sign and return to utility either the Interconnection Application or the Simplified Process Application in the form prescribed in the utility's Distributed Energy Resources Interconnection Process. The application shall be approved by the utility prior to the customer beginning the project. The customer signature on the application indicates the customer shall follow the steps outlined in the utility's interconnection rules. 3. The customer shall enter into a written contract with the utility using the uniform contract contained in the utility's Rules Governing Interconnection of Cogeneration and Small Power Production. 4. The qualifying facility shall pay the utility for all reasonable costs of interconnection including those costs outlined in Minnesota Statute 216B.164, the utility's DER Interconnection Process, and the State of Minnesota Interconnection Technical Requirements. 5. The qualifying facility's total generator nameplate capacity shall be less than 40 kW and the facility shall operate at a measured capacity of less than 40 kW at all times to qualify for net metering/net billing or roll over credit compensation. 6. The utility may limit the capacity and operating characteristics of qualifying facility single phase generators in a manner consistent with the utility limitations for single phase motors, when necessary to avoid a qualifying facility from causing problems with the service of other customers. 7. The utility may require the qualifying facility to discontinue parallel generation operations when necessary for system safety. 2 8. The power output from the qualifying facility must be maintained so that frequency and voltage are compatible with normal utility service and do not cause that service to fall outside the prescribed limits of interconnection rules and other standard limitations. 9. The qualifying facility shall keep in force liability insurance against personal or property damage due to the installation, interconnection, and operation of its electric generating facilities. The amount of insurance coverage shall be the maximum amount of said insurance for a qualifying facility or net metered facility as outlined in the utility's DER Interconnection Process. 10. Failure of the qualifying facility to operate its distributed energy resource at a measured capacity below the 40 kW AC capacity limit established by Minn. Stat. §216B.164, Sub. 3 and as contemplated by this policy, shall result in the following. The utility will notify the customer/qualifying facility of the fact that its generating equipment has failed to operate below the 40 kW AC maximum capacity and will provide the customer/qualifying facility with the date, time and kW reading that substantiate this finding. 11. The utility shall compensate the customer/qualifying facility for all metered electricity produced by said qualifying facility during the thirty (30) day period during which the failure occurred, at the utility's wholesale power supplier's avoided cost rate. 12. The utility shall continue to pay the customer/qualifying facility for subsequent electricity produced and delivered pursuant to the contract, at the utility's wholesale power supplier's avoided cost rate until: 1. The problem with the generator that caused it to operate at or above the statutory maximum capacity has been remedied; and 2. The utility has been provided documentation adopted by a Minnesota Professional Engineer that confirms the problem with the generator has been remedied. 13. Any customer account eligible for net metering/net billing is not eligible for any other load management discounts unless agreed to by the utility. 14. Payment for the purchase of the qualifying facility's electricity herein shall be in the form of a credit on the customer's monthly billing invoice or paid by check or electronic payment to the customer within fifteen (15) days of the billing date, whichever is selected and indicated in the contract. 15. The customer must be, and continue to be, current with payment on its electric account with utility. 16. The customer must not enter into any arrangement that violates the utility's exclusive right to provide electric service in its service area under Minnesota Statutes §§216B.37-44. 17. In the event that the distributed generator fails to meet the requirements of this policy for a total distributed generation capacity of less than 40 kW AC, and fails to satisfy the corrective requirements set forth in Section 12 above, then the utility will have the right to (1) cancel the contract with the owner of the qualifying facility, and (2) enter into a new contract with the owner of the qualifying facility that, among other changes, adjusts the qualifying facility's rated capacity and specifies avoided cost pricing for the qualifying facility's output. To the extent that the utility does not have the obligation to make purchases from qualifying facilities of 40 kW or greater due to transfer of the obligation to the utility's wholesale supplier that has been approved by the Federal Energy Regulatory Commission, the new agreement will be between the utility's wholesale supplier and the qualifying facility. In either case, the utility (and, as applicable, the utility's wholesale supplier) and the owner of the qualifying facility will cooperate in the transition from the form of contract set forth in the utility's Rules Governing Interconnection of Cogeneration and Small Power Production to a new form of contract appropriate to a qualifying facility with a capacity of 40 kW or greater. 18. Fully executed interconnection contracts for distributed energy resources may be canceled in the event the distributed energy resource fails to interconnect to the utility's distribution system within twelve (12) months of signing of the interconnection contract by the qualifying facility and the utility. M Rules Governing the Interconnection of Cogeneration and Small Power Production Facilities with Hutchinson Utilities Commission Part A. DEFINITIONS Subpart 1. Applicability. For purposes of these rules, the following terms have the meanings given them below. Subp. 2. Average retail utility energy rate. "Average retail utility energy rate" means, for any class of utility customer, the quotient of the total annual class revenue from sales of electricity minus the annual revenue resulting from fixed charges, divided by the annual class kilowatt-hour sales. The computation shall use data from the most recent 12- month period available. Subp. 3. Backup power. "Backup power" means electric energy or capacity supplied by the utility to replace energy ordinarily generated by a qualifying facility's own generation equipment during an unscheduled outage of the facility. Subp. 4. Capacity. "Capacity" means the capability to produce, transmit, or deliver electric energy, and is measured by the number of megawatts alternating current at the point of common coupling between a qualifying facility and the utility's electric system during a 15-minute interval period. Subp. S. Capacity costs. "Capacity costs" means the costs associated with providing the capability to deliver energy. The utility capital costs consist of the costs of facilities from the utility and the utility's wholesale provider used to generate, transmit, and distribute electricity and the fixed operating and maintenance costs of these facilities. Subp. 6. Customer. "Customer" means the person named on the utility electric bill for the premises. Subp. 7. Energy. "Energy" means electric energy, measured in kilowatt-hours. Subp. 8. Energy costs. "Energy costs" means the variable costs associated with the production of electric energy. They consist of fuel costs and variable operating and maintenance expenses. Subp. 9. Firm power. "Firm power" means energy delivered by the qualifying facility to the utility with at least a 65 percent on -peak capacity factor in the month. The capacity factor is based upon the qualifying facility's maximum metered capacity delivered to the utility during the on -peak hours for the month. Subp. 10. Governing body. "Governing body" means Hutchinson Utilities Commission. Subp. 11. Interconnection costs. "Interconnection costs" means the reasonable costs of connection, switching, metering, transmission, distribution, safety provisions, and administrative costs incurred by the utility that are directly related to installing and maintaining the physical facilities necessary to permit interconnected operations with a qualifying facility. Costs are considered interconnection costs only to the extent that they exceed the costs the utility would incur in selling electricity to the qualifying facility as a nongenerating customer. Subp. 12. Interruptible power. "Interruptible power" means electric energy or capacity supplied by the utility to a qualifying facility subject to interruption under the provisions of the utility's tariff applicable to the retail class of customers to which the qualifying facility would belong irrespective of its ability to generate electricity. Subp. 13. Maintenance power. "Maintenance power" means electric energy or capacity supplied by a utility during scheduled outages of the qualifying facility. Subp. 14.On-peak hours. "On -peak hours" means either those hours formally designated by the utility as on -peak for ratemaking purposes or those hours for which its typical loads are at least 85 percent of its average maximum monthly loads. Subp. 15. Point of distributed energy resource (DER) connection. "Point of DER connection" means the point where the qualifying facility's generation system, including the point of generator output, is connected to the customer's electric system and meets the current definition of IEEE 1547. Subp. 16. Purchase. "Purchase" means the purchase of electric energy or capacity or both from a qualifying facility by the utility. Subp. 17. Qualifying facility. "Qualifying facility" means a cogeneration or small power production facility which satisfies the conditions established in Code of Federal Regulations, title 18, part 292. The initial operation date or initial installation date of a cogeneration or small power production facility must not prevent the facility from being considered a qualifying facility for the purposes of this chapter if it otherwise satisfies all stated conditions. The qualifying facility must be owned by a Customer and located in the utility service area. Subp. 18. Sale. "Sale" means the sale of electric energy or capacity or both by the utility to a qualifying facility. Subp. 19a. Standby charge. "Standby charge" means the charge imposed by the utility upon a qualifying facility for the recovery of costs for the provision of standby services necessary to make electricity service available to the qualifying facility. Subp. 19b. Standby service. "Standby service" means the service to potentially provide electric energy or capacity supplied by the utility to a qualifying facility greater than 40 kW. Subp. 20. Supplementary power. "Supplementary power" means electric energy or capacity supplied by the utility which is regularly used by a qualifying facility in addition to that which the facility generates itself. Subp. 21. System emergency. "System emergency" means a condition on the utility's system which is imminently likely to result in significant disruption of service to customers or to endanger life or property. Subp. 22. Utility. "Utility" means Hutchinson Utilities Commission. Part B. SCOPE AND PURPOSE The purpose of these rules is to implement certain provisions of Minnesota Statutes, §216B.164; the Public Utility Regulatory Policies Act of 1978, United States Code, title 16, §824a-3; and the Federal Energy Regulatory Commission regulations, Code of Federal Regulations, title 18, part 292. These rules shall be applied in accordance with their intent to give the maximum possible encouragement to cogeneration and small power production consistent with protection of the ratepayers and the public. Part C. FILING REQUIREMENTS 2 Annually the utility shall file for review and approval, a cogeneration and small power production tariff with the governing body. The tariff must contain schedules 1— 4. SCHEDULE 1. Schedule 1 shall contain the calculation of the average retail utility energy rates to be updated annually. SCHEDULE 2. Schedule 2 shall contain all standard contracts to be used with qualifying facilities, containing applicable terms and conditions. SCHEDULE 3. Schedule 3 shall contain the utility's adopted interconnection process, safety standards, technical requirements for distributed energy resource systems, required operating procedures for interconnected operations, and the functions to be performed by any control and protective apparatus. SCHEDULE 4. Schedule 5 shall contain the estimated average incremental energy costs by seasonal, peak and off-peak periods for the utility's power supplier from which energy purchases are first avoided. Schedule 4 shall also contain the net annual avoided capacity costs, if any, stated per kilowatt-hour and averaged over the on -peak hours and over all hours for the utility's power supplier from which capacity purchases are first avoided. Both the average incremental energy costs and net annual avoided capacity costs shall be increased by a factor equal to 50 percent of the utility and the utility's power supplier's overall line losses due to distribution, transmission and transformation of electric energy. Part D. AVAILABILITY OF FILINGS All filings shall be maintained at the utility's general office and any other offices of the utility where rate tariffs are kept. The filings shall be made available for public inspection during normal business hours. The utility shall supply the current year's distributed generation rates, interconnection procedures and application form on the utility website, if practicable, or at the utility office. Part E. REPORTING REQUIREMENTS Annually the utility shall report to the governing body for its review and approval an annual report including information in subparts 1-3. The utility shall still comply with other federal and state reporting of distributed generation to federal and state agencies expressly required by statute. Subpart 1. Summary of average retail utility energy rate. A summary of the qualifying facilities that are currently served under average retail utility energy rate. Subp. 2. Other qualifying facilities. A summary of the qualifying facilities that are not currently served under average retail utility energy rate. Subp. 3. Wheeling. A summary of the wheeling undertaken with respect to qualifying facilities. Part F. CONDITIONS OF SERVICE Subpart 1. Requirement to purchase. The utility shall purchase energy and capacity from any qualifying facility which offers to sell energy and capacity to the utility and agrees to the conditions in these rules. Subp. 2. Written contract. A written contract shall be executed between the qualifying facility and the utility. Part G. ELECTRICAL CODE COMPLIANCE Subpart 1. Compliance; standards. The interconnection between the qualifying facility and the utility must comply with the requirements in the most recently published edition of the National Electrical Safety Code issued by the Institute of Electrical and Electronics Engineers. The interconnection is subject to subparts 2 and 3. Subp. 2. Interconnection. The qualifying facility is responsible for complying with all applicable local, state, and federal codes, including building codes, the National Electrical Code (NEC), the National Electrical Safety Code (NESC), and noise and emissions standards. The utility shall require proof that the qualifying facility is in compliance with the NEC before the interconnection is made. The qualifying facility must obtain installation approval from an electrical inspector recognized by the Minnesota State Board of Electricity. Subp. 3. Generation system. The qualifying facility's generation system and installation must comply with the American National Standards Institute/Institute of Electrical and Electronics Engineers (ANSI/IEEE) standards applicable to the installation. Part H. RESPONSIBILITY FOR APPARATUS The qualifying facility, without cost to the utility, must furnish, install, operate, and maintain in good order and repair any apparatus the qualifying facility needs in order to operate in accordance with schedule 3. Part I. TYPES OF POWER TO BE OFFERED; STANDBY SERVICE Subpart 1. Service to be offered. The utility shall offer maintenance, interruptible, supplementary, and backup power to the qualifying facility upon request. Subp. 2. Standby service. The utility shall offer a qualifying facility standby power or service at the utility's applicable standby rate schedule. Part J. DISCONTINUING SALES DURING EMERGENCY The utility may discontinue sales to the qualifying facility during a system emergency, if the discontinuance and recommencement of service is not discriminatory. Part K. RATES FOR UTILITY SALES TO A QUALIFYING FACILITY Rates for sales to a qualifying facility are governed by the applicable tariff for the class of S electric utility customers to which the qualifying facility belongs or would belong were it not a qualifying facility. Such rates are not guaranteed and may change from time to time at the discretion of the utility. Part L. STANDARD RATES FOR PURCHASES FROM QUALIFYING FACILITIES Subpart 1. Qualifying facilities with 100-kilowatt capacity or less. For qualifying facilities with capacity of 100 kilowatts or less, standard purchase rates apply. The utility shall make available four types of standard rates, described in parts M, N, O, and P. The qualifying facility with a capacity of 100 kilowatts or less must choose interconnection under one of these rates, and must specify its choice in the written contract required in part V. Any net credit to the qualifying facility must, at its option, be credited to its account with the utility or returned by check or comparable electronic payment service within 15 days of the billing date. The option chosen must be specified in the written contract required in part V. Qualifying facilities remain responsible for any monthly service charges and demand charges specified in the tariff under which they consume electricity from the utility. Subp. 2. Qualifying facilities over 100-kilowatt capacity. A qualifying facility with more than 100- kilowatt capacity has the option to negotiate a contract with the utility or, if it commits to provide firm power, be compensated under standard rates. Subp. 3. Grid access charge. A qualifying facility shall be assessed a monthly grid access charge to recover the fixed costs not already paid by the customer through the customer's existing billing arrangement. The additional charge shall be reasonable and appropriate for the class of customer based on the most recent cost of service study defining the grid access charge. The cost of service study for the grid access charge shall be made available for review by the customer of the utility upon request. Part M. AVERAGE RETAIL UTILITY ENERGY RATE Subpart 1. Applicability. The average retail utility energy rate is available only to customer -owned qualifying facilities with capacity of less than 40 kilowatts which choose not to offer electric power for sale on either a time -of -day basis, a simultaneous purchase and sale basis or roll-over credit basis. Subp. 2. Method of billing. The utility shall bill the qualifying facility for the excess of energy supplied by the utility above energy supplied by the qualifying facility during each billing period according to the utility's applicable retail rate schedule. Subp. 3. Additional calculations for billing. When the energy generated by the qualifying facility exceeds that supplied by the utility to the customer at the same site during the same billing period, the utility shall compensate the qualifying facility for the excess energy at the average retail utility energy rate. Part N. SIMULTANEOUS PURCHASE AND SALE BILLING RATE Subpart 1. Applicability. The simultaneous purchase and sale rate is available only to qualifying facilities with capacity of less than 40 kilowatts which choose not to offer electric power for sale on average retail utility energy rate basis, time -of -day basis or roll- over credit basis. Subp. 2. Method of billing. The qualifying facility must be billed for all energy and capacity it consumes during a billing period according to the utility's applicable retail rate schedule. Subp. 3. Compensation to qualifying facility; energy purchase. The utility shall purchase all energy which is made available to it by the qualifying facility. At the option of the qualifying facility, its entire generation must be deemed to be made available to the utility. Compensation to the qualifying facility must be the energy rate shown on schedule 4. Subp. 4. Compensation to qualifying facility; capacity purchase. If the qualifying facility provides firm power to the utility, the capacity component must be the utility's net annual avoided capacity cost per kilowatt-hour averaged over all hours shown on schedule 4, divided by the number of hours in the billing period. If the qualifying facility does not provide firm power to the utility, no capacity component may be included in the compensation paid to the qualifying facility. Part O. TIME -OF -DAY PURCHASE RATES Subpart 1. Applicability. Time -of -day rates are required for qualifying facilities with capacity of 40 kilowatts or more and less than or equal to 100 kilowatts, and they are optional for qualifying facilities with capacity less than 40 kilowatts. Time -of -day rates are also optional for qualifying facilities with capacity greater than 100 kilowatts if these qualifying facilities provide firm power. Subp. 2. Method of billing. The qualifying facility must be billed for all energy and capacity it consumes during each billing period according to the utility's applicable retail rate schedule. Subp. 3. Compensation to qualifying facility; energy purchases. The utility shall purchase all energy which is made available to it by the qualifying facility. Compensation to the qualifying facility must be the energy rate shown on schedule 4. Subp. 4. Compensation to qualifying facility; capacity purchases. If the qualifying facility provides firm power to the utility, the capacity component must be the capacity cost per kilowatt shown on schedule 4 divided by the number of on -peak hours in the billing period. The capacity component applies only to deliveries during on -peak hours. If the qualifying facility does not provide firm power to the utility, no capacity component may be included in the compensation paid to the qualifying facility. Part P. ROLL-OVER CREDIT PURCHASE RATES Subpart 1. Applicability. The roll-over credit rate is available only to qualifying facilities with capacity of less than 40 kilowatts which choose not to offer electric power for sale on average retail utility energy rate basis, time -of -day basis or simultaneous purchase and sale basis. Subp. 2. Method of billing. The utility shall bill the qualifying facility for the excess of energy supplied by the utility above energy supplied by the qualifying facility during each billing period according to the utility's applicable retail rate schedule. 6 Subp. 3. Additional calculations for billing. When the energy generated by the qualifying facility exceeds that supplied by the utility during a billing period, the utility shall apply the excess kilowatt hours as a credit to the next billing period kilowatt hour usage. Excess kilowatt hours that are not offset in the next billing period shall continue to be rolled over to the next consecutive billing period. Any excess kilowatt hours rolled over that are remaining at the end of each calendar year shall cancel with no additional compensation. Part Q. CONTRACTS NEGOTIATED BY CUSTOMER A qualifying facility with capacity greater than 100 kilowatts must negotiate a contract with the utility setting the applicable rates for payments to the customer of avoided capacity and energy costs. Subpart 1. Amount of capacity payments. The qualifying facility which negotiates a contract under part Q must be entitled to the full avoided capacity costs of the utility. The amount of capacity payments will be determined by the utility and the utility's wholesale power provider. Subp. 2. Full avoided energy costs. The qualifying facility which negotiates a contract under part Q must be entitled to the full avoided energy costs of the utility. The costs must be adjusted as appropriate to reflect line losses. Part R. WHEELING Qualifying facilities with capacity of 30 kilowatts or greater, are interconnected to the utility's distribution system and choose to sell the output of the qualifying facility to any other utility, must pay any appropriate wheeling charges to the utility. Within 15 days of receiving payment from the utility ultimately receiving the qualifying facility's output, the utility shall pay the qualifying facility the payment less the charges it has incurred and its own reasonable wheeling costs. Part S. NOTIFICATION TO CUSTOMERS Subpart 1. Contents of written notice. Following each annual review and approval by the utility of the cogeneration rate tariffs the utility shall furnish in the monthly newsletter or similar mailing, written notice to each of its customers that the utility is obligated to interconnect with and purchase electricity from cogenerators and small power producers. Subp. 2. Availability of information. The utility shall make available to all interested persons upon request, the interconnection process and requirements adopted by the utility, pertinent rate schedules and sample contractual agreements. Part T. DISPUTE RESOLUTION In case of a dispute between a utility and a qualifying facility or an impasse in the negotiations between them, either party may request the governing body to determine the issue. Part U. INTERCONNECTION CONTRACTS 7 Subpart 1. Interconnection standards. The utility shall provide a customer applying for interconnection with a copy of, or electronic link to, the utility's adopted interconnection process and requirements. Subp. 2. Existing contracts. Any existing interconnection contract executed between the utility and a qualifying facility with capacity of less than 40 kilowatts remains in force until terminated by mutual agreement of the parties or as otherwise specified in the contract. The governing body has assumed all dispute responsibilities as listed in existing interconnection contracts. Disputes are resolved in accordance with Part T. Subp. 3. Renewable energy credits; ownership. Generators own all renewable energy credits unless other ownership is expressly provided for by a contract between a generator and the utility. Part V. UNIFORM CONTRACT The form for uniform contract that shall be used between the utility and a qualifying facility having less than 40 kilowatts of capacity is as shown in subpart 1. Subpart 1. Uniform Contract for Cogeneration and Small Power Production Facilities. (See attached contract form.) All DG (Cogeneration) Usage Month (BilledTotal Next Month) Delivered to HUC Total KWH Deliveredto Customer Electric Energy Sold Backto HUC (KWH) Net KWH Billedto Customer January 2022 February 2022 March 2022 April 2022 May 2022 June 2022 July 2022 August 2022 September 2022 October 2022 November 2022 December 2022 6,118 15,548 26,737 27,154 38,493 48,439 41,301 32,844 37,082 29,490 12,033 3,345 311,611 245,117 261,744 252,393 272,905 251,833 254,227 299,386 249,596 252,001 303,533 70 5,230 11,388 9,469 18,724 21,048 17,317 14,705 17,642 11,833 2,273 0 305,493 229,569 235,007 225,239 234,412 203,394 212,926 266,542 212,514 222,511 291,500 293,865 Totals 318,584 3297,56 ,251,5 129,699210 2,932,972 DG (Cogeneration) - Under 40 KW Usage Month (BilledTotal Next Month) Delivered to HUC Total KWH Delrvere to Customer ectnc nergy o ac to HUC (KWH) at i e to Customer January 2022 February 2022 March 2022 April 2022 May 2022 June 2022 July 2022 August 2022 September 2022 October 2022 November 2022 December 2022 6,118 12,818 19,787 17,394 25,063 28,339 25,071 22,344 24,592 19,070 8,043 2,215 18,701 15,027 13,104 11,793 9,595 12,403 14,897 13,766 10,426 10,171 14,073 20,390 70 5,230 11,388 9,469 18,724 21,048 17,317 14,705 17,642 11,833 2,273 0 12,583 2,209 -6,683 -5,601 -15,468 -15,936 -10,174 -8,578 -14,166 -8,899 6,030 18,175 Totals 210,854 164,3461 129,699 -46,508 Total KWH Delivered to HUC The Solar system produced more than the customer consumed during anytime in that month Total KWH Delivered to Customer The Customer consumed more than the solar system produced during anytime in that month Electric Energy Sold Back to HUC (KWH) The solar system produced more than the customer consumed during that Month Net KWH Billed to Customer The net between the total kwh delivered to HUC and total delivered to the customer. The meters are bi-directional. When the system is producing more than the customer is consuming the excess is delivered to HUC and recorded. When the system is producing less than the customer is consuming the meter is recording the energy delivered. If during the Month, the system produced more than the customer consumed then there is a credit to the customer. All energy Sold Back to HUC was from systems smaller than 40KW. HUTCHINSON UTILITIES COMMISSION��` Board Action Form �r�turscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: REQ #9438 - Hutchinson Substation 115kV Rebuild Presenter: J. Carter Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: HUC is looking to rebuild and reconfigure the Hutchinson Substation to increase available capacity and reliability to Hutchinson. HUC is asking DGR Engineering to perform the administrative and engineering duties of the project to final completion, per the project scope developed by Missouri River Energy Services and approved by MISO. The attached Task Order, provided by DGR Engineering, outlines these responsibilities and associated costs. As this is a transmission project, expenditures used for this rebuild will be able to be recovered via the Great River Energy joint pricing zone transmission agreement. Attachments: -Task Order No. 7 Agreement BOARD ACTION REQUESTED: Approval of requisition #9438 to DGR Engineering Fiscal Impact: $84,000 Included in current budget: No Budget Change: No PROJECT SECTION: Total Project Cost: Remaining Cost: TASK ORDER Task Order No. 7 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 25th day of February , 20 21 . TASK ORDER PROJECT NAME: Hutchinson Substation 115 kV Rebuild TASK ORDER PROJECT DESCRIPTION: The project consists of expanding and rebuilding the 115 kV bus at the Hutchinson Substation to a four -position (expandable to six -position) ring bus configuration to accommodate connection of a second 115/69 kV transformer and to provide increased reliability to the area 115 kV system. The project includes installation of four 115 kV circuit breakers and associated disconnect switches, instrument transformers, buswork and related steel structures; a new control enclosure; and associated new relaying and controls for the ring bus expansion and new transformer. 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 Transformer Procurement: • Prepare plans, specifications, and contract documents to allow receiving of substation transformer bids. • Provide an Advertisement for Bids and send out specifications to potential bidders. • Respond to bidder questions. • Review and analyze bids and provide recommendation of award. Preliminary Phase: • Conduct fieldwork to ascertain the required facilities necessary to develop the proposed improvements. • Develop a work scope definition for all parties identifying which segments of the project are to be completed by HUC and which are by to be completed by Contractors or others. Determine associated contracting and material procurement arrangements. • Determine scope of SCADA interface requirements to HUC's system and other area utility systems. • Develop a project schedule describing the various project components including design, P:A04\285\00\Propnt.rV 1 a, Pk Order No 7 11utchi morn Subtation 115 kV Rek uilrl.rlocx Pape 1 of 5 (09/14) bidding, material procurement, construction, and energization/cutover. • Develop updated cost estimates for the various project components. • Prepare a preliminary design summary, along with preliminary drawings, and discuss the same with HUC staff prior to starting final design. Design Phase: • Perform field topographical survey of the substation area as required for design purposes. • Coordinate and arrange for soil borings and geotechnical testing necessary for the project to be used in designing foundations for the substation structures. • Prepare specifications and bidding documents for major materials and distribute to interested suppliers. The initial list of major equipment includes steel structures, switches, breakers, CVTs, and control/relay panels. • Develop controls and protective relaying design for the substation equipment including 115 kV breakers, 115/69 kV power transformer, and 69 kV breakers. • Develop physical design including site work, foundations, steel structures, bus work, shielding, fence, ground grid, raceway, equipment installation, control building, and equipment wiring. • Coordinate design issues including equipment preferences and selection, design criteria, and SCADA interface with HUC. • Coordinate design issues with MRES, GRE, and others as needed. • Produce drawings, plans, sketches, elevations, schematics, diagrams, descriptions, and documents as necessary to describe the intended construction. Bidding Phase: • Provide public bidding documents to interested bidders, issue planholder lists, and respond to bidder questions. • Assist HUC in receiving bids, analyze bids, develop spreadsheets detailing bid results, and make recommendations of award of contracts. Construction Phase: • Organize and attend preconstruction conferences. • Review shop drawings. • Assist in construction administration and scheduling. • Make periodic site visits at intervals appropriate to the stage of construction, to observe construction and measure units completed. • Respond to Contractor questions. • Process pay requests. • Determine protective relay settings for the substation equipment. • Assist with and/or observe commissioning of substation equipment. Final Phase • Conduct project walk-throughs and develop Contractor work "punch lists". • Develop close-out documents for signatures. • Assemble construction record drawings. • Assist in orientation of local operating personnel. P:A04\285\00\Propnt.rV Ia,➢k Order No 7 11utchimorn Subtation 115 kV Rek uilrl.rlocx Pape 2 of 5 (09/14) PROJECT BUDGET: The following is the initial project budget: Estimated construction cost $7,573,000 Contingency and engineering $2,272,000 Subtotal: $9,845,000 FEE ARRANGEMENT: We propose the following fee arrangement for the identified work: Component Transformer Procurement Preliminary Phase Final Design Bidding Construction Administration Post Construction Fee Type Fee Lump Sum $34,000 Hourly Estimate $50,000 Lump Sum **TBD Lump Sum **TBD Hourly Estimate **TBD Hourly Estimate **TBD Total: **TBD **The engineering fees for all segments other than the transformer procurement and preliminary phases will be added later by amendment after the completion of preliminary design defining the scope of the project and the contracting and material procurement arrangements. All "Lump Sum" work is inclusive of personnel, subsistence, travel, computer, and other costs. All "Hourly" work will be billed at the then -current Hourly Fee Schedule. The 2023 Hourly Fee Schedule 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. SPECIAL TERMS AND CONDITIONS: None P:A04\285\00\Propnt.rV 1a,➢k Order No 7 11utchimorn Subtation 115 kV Rek uilrl.rlocx Pape 3 06f 5 (09/14) Hutchinson Utilities Commission Hutchinson, Minnesota (Client) Title: Title: (Authorized signature and Title) (Authorized signature and Title) Address: City:_ Date: DeWild Grant Reckert and Associates Company d/b/a DGR Engineering (Consultant) Title: (Authorized signature and Title) Address: 1302 South Union Street City: Rock Rapids, IA 51246 Date: P:A04\285\00\Propnt.rV Ia,➢k Order No 7 11utchimorn Subtation 115 kV Rek uilrl.rlocx Pape 4 of 5 (09/14) DGR ENGINEERING JANUARY 2023 HOURLY FEE SCHEDULE A Personnel Grade Engineer Hourly Rate Technician Hourly Rate Administrative Hourly Rate 01 $110 $65 $60 02 $120 $70 $64 03 $124 $75 $68 04 $130 $80 $72 05 $140 $86 $77 06 $154 $92 $82 07 $166 $98 $88 08 $178 $104 $94 09 $192 $110 $100 10 $206 $116 $106 11 $220 $122 $112 12 $234 $128 $130 13 $248 $135 $148 14 $255 $145 $182 15 $262 $156 1 $240 Reimbursable Expenses: 1. Standard vehicle mileage at the IRS standard mileage rate in effect at the time. 2. Survey/staking/heavy duty trucks at IRS standard mileage rate plus $0.25 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. P:A04\285\00\Prupnt.rV 1a,➢k Order No 7 11utchrmon Subtation 115 kV Rek uilrl.docx Pape 5 cif 5 (09/14) HUTCHINSON UTILITIES COMMISSION��` Board Action Form �r�turscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: Approve Requisition 009439 - Plant #2 Fabrication of Ladder & Platforms Presenter: Mike Gabrielson Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: HUC has to update the ladders and platforms used by staff to reach portions of the power plant. These modification need to be made in order to be in compliance with OSHA requirements and standards. This project was approved in the Capital Project list for 2023. The estimated budget was $225,000. Two vendors were engaged who could potentially do this work. One vendor was a turnkey vendor who could do both the fabrication as well as the installation of the ladder and platforms. The other vendor could only do the installation with the fabrication having to be outsourced to another company. When comparing the turnkey vendor to the two other vendors needed to do the entire project the more cost effective option is to work with the two vendors for their various portions of the project. Req. 009439 is to Valley Custom Welding who will be performing the fabricating and build -out of all Ladders and Platforms based on engineering designs at a cost of $153,096. (Phase 1) BOARD ACTION REQUESTED: Approve Req 009439 for Fabrication of Ladder and Platforms - Plant 2 Fiscal Impact: $153,096 Included in current budget: Yes Budget Change: PROJECT SECTION: Total Project Cost: $233,279.49 Remaining Cost: HUTCHINSON UTILITIES ra,�itiaa° oni'initIIIEwasrioI'll Note PURCHASE REQUISITION HUTCHINSON UTILITIES COMMISSION 225 MICHIGAN ST SE HUTCHINSON, MN 55350 Phone:320-587-4746 Fax:320-587-4721 VALLEY CUSTOM WELDING, LLC E2090 210TH AVE. ELMWOOD, WI 54740 Description: Plant 2 Ladder Access Fabrication Date Requisition No. 02/09/2023 009439 Required by: Requested by: mgabrielson Item No. part No. Description Qty Unit Due Date Unit Price Ext. Amount PLANT 2 LADDER ACCESS FABRICATION - MFG. PART: 1 1.00 EA 05/10/2023 $153,096.000 $153,096.00 Total: 153,096.00 Date Printed: 02/09/2023 Requisitioned By: mgabrielson Page: 1/1 U 0 T E VALLEY C U STO M COMPANY: HUTCHINSON UTILITIES WELDING ATTENTION: MICHAEL GABRIELSON NO. OF PAGES: ONE DATE: 1 26 23 Ezo90 z 1 aTH AVE. ELMWOOD, WI 54740 PHONE: FAX: PHONE (71 5) 283-4322 FILE NO. FAX (71 5) 283-4323 PROJECT: HUTCHINSON UTILITIES PLANT— 2DAN HARTUNG SHIP TO LOCATION: HUTCHINSON, MN. FROM: don @volleycustom welding, com DESCRIPTION ❑ STEEL STRUCTURAL ❑ JOIST ❑STEEDECK ❑METAL FABRICATIONS ❑STAIRAILNGS DIVISION QTY / WEIGHT NA NA NA NA NA HUTCHINSON UTILITIES PLANT-2 VALLEY CUSTOM WELDING WILL PROVIDE.(5) PLATFORMS, (7) LADDERS, (7) SAFETY GATES, (1) STAIR, RAILINGS, GRTAING AND MISC. MATERIAL. ALL MATERIAL TO BE GALVANIZED. EXCLUDED IS ALL ENGINEERING, TESTING, ERECTION, LIGHT GAUGE METALS AND ANY ITEMS NOT LISTED ABOVE. SEE STANDARD EXCLUSIONS BELOW. BASE BID: $153,096.00 FREIGHT INCLUDED, SALES TAX INCLUDED EXCLUDING ALL ENGINEERING IF ADDITIONAL INSURANCE IS NEEDED BEYOND VALLEY CUSTOMS STANDARD POLICY ADDITIONAL COST TO BE BY GC VALLEY CUSTOM WELDING IMPLEMENTS A QUALITY CONTROL PROGRAM WHICH CONFORMS TO IBC 1704.2 UNLESS NOTED OTHERWISE, ALL MATERIAL INCLUDED IN THIS QUOTE WILL BE CLEANED PER SSPC-SP 2, AND RECEIVE (ONE) COAT OF STANDARD GRAY SHOP PRIMER. FINISH PAINTING, POWDER COALING & GALVANIZING IS NOT INCLUDED UNLESS NOTED ON THIS QUOTE. VALLEY CUSTOM WELDING IS NOT RESPONSIBLE FOR THE FUNCTION, PRACTICALITY OR CODE COMPLIANCE OF THE STEEL PRODUCTS THIS QUOTE REPRESENTS DUE TO THE DESIGN OR THEORY OF THE DRAWINGS. DEVIATION FROM THE BID DOCUMENTS VOIDS THIS QUOTE. VALLEY CUSTOM WELDING IS NOT AN AISC CERTIFIED SHOP HARDWARE WILL BE PROVIDED FOR ASSEMBLING SUPPLIED STEEL ONLY. STANDARD EXCLUSIONS JU.N--Qj-ANY & ALL TESTING, HARDWARE FOR BOLTING WOOD TO SUPPLIED STEEL, SIMPSON TYPE CONNECTORS, ENGINEERING OF SUPPLIED STEEL OR CONNECTIONS, LINTELS NOT CLEARLY SHOWN ON STRUCTURAL DRAWINGS, INSTALLATION OF STEEL, FIELD VERIFYING OR MEASURING, ATTACHMENTS FOR OTHER TRADES, CLEANING PRIOR TO FIELD PAINTING, SPECIAL COATINGS & COMPATIBILITY OF PRIMER WITH FINISHED PAINTS. QUOTE VALID FOR A PERIOD OF 30 DAYS AFTER THE ABOVE DATE. ACCEPTANCE OF THIS PROPOSAL ACCEPTS ALL TERMS & CONDITIONS OF THIS PROPOSAL K November 25, 2022 Hutchinson Utilities Mr. Mike Gabrielson 44-4th Ave. NE Hutchinson, MN 55350 Mr. Mike Gabrielson, Here is our bid to fabricate and deliver the (5) platforms, (7) safety gates, (7) ladders, (1) set of stairs with railings to your plant #2. All the items will be hot -dipped galvanized per your request. All the items will be built according to the Krech Ojard Engineering drawings: G001, S101, S301, S501 and S502. Total Bid including sales tax: $177,490.00 Proposal is good for 30 days. We would require 50% down to begin this project. Final payment due within 30 days of completion. Please call me or email me with any questions or concerns. Otherwise, please sign and return at your convenience. Thank you for your consideration, Katie Mahowald Project Manager Signature of acceptance Date DEMOLITION REMOVAL HAULING HUTCHINSON UTILITIES COMMISSION��` Board Action Form �r�turscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: Approve Requisition 009440 - Installation of Ladder & Platforms: Plant #2 Presenter: Mike Gabrielson Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: HUC has to update the ladders and platforms used by staff to reach portions of the power plant. These modification need to be made in order to be in compliance with OSHA requirements and standards. This project was approved in the Capital Project list for 2023. The estimated budget was $225,000. Two vendors were engaged who could potentially do this work. One vendor was a turnkey vendor who could do both the fabrication as well as the installation of the ladder and platforms. The other vendor could only do the installation with the fabrication having to be outsourced to another company. When comparing the turnkey vendor to the two other vendors needed to do the entire project the more cost effective option is to work with the two vendors for their various portions of the project. Req. 009440 is to Wheelhouse Industrial who will be performing the installation of equipment/materials at a cost of $80,183.49. (Phase 2) BOARD ACTION REQUESTED: Approve Req 009440 Plant 2 Ladder & Platforms Installation FiscalImpact: $80,183.49 Included in current budget: Yes Budget Change: PROJECT SECTION: Total Project Cost: 233,279.49 Remaining Cost: HUTCHINSON UTILITIES ra,�itiaa° oni'initIIIEwasrioI'll WHEELHOUSE INDUSTRIAL 4439 US HWY 12 SW PO BOX 134 WAVERLY, MN 55390 Note Description: Plant 2 Ladder Access Install PURCHASE REQUISITION HUTCHINSON UTILITIES COMMISSION 225 MICHIGAN ST SE HUTCHINSON, MN 55350 Phone:320-587-4746 Fax:320-587-4721 Date Requisition No. 02/09/2023 009440 Required by: Requested by: mgabrielson Item No. part No. Description Qty Unit Due Date Unit Price Ext. Amount PLANT 2 LADDER ACCESS INSTALL - MFG. PART: 1 1.00 EA 05/10/2023 $80,183.490 $80,183.49 Total: 80,183.49 Date Printed: 02/09/2023 Requisitioned By: mgabrielson Page: 1/1 TO: Michael Gabrielson Hutchinson Utilities 44 4th Ave NE Hutchinson, MN 55350 trl4!!,Jlllr%,, WH EELHOUSE �mi„��'rtu„Nryryrrea Gnu a C�QIp I N L U S T R I A L PROPOSAL Project: Address: Date: 1392 Plant #2 Installation of All Structural Access & Platforms 1/24/2023 We propose to furnish all materials, equipment, and labor, subject to any exclusions listed below, required to complete the following: Plant #2 Install Custom Fabricated Access Platforms 1. Plant #2 Install Custom Fabricated Access Platforms Subtotal: *7.875% Tax: TOTAL: Terms and Conditions Inclusions: $74,330.00 $5, 853.49 $80,183.49 Install the following structural items from Krech Ojard Drawings dated 10-31-22 numbered G001. S101, S301, S501 and S502: 1. (5) Platforms 2. (7) Ladders 3. (7) Safety Gates 4. (1) Stair, railing, grating and miscellaneous materials. 5. All material to be hot dipped galvanized. 6. Deliver costs are included. Exclusions: - Materials Notes: - Proposal and price is good for 30 days. - Labor to be completed prior to May 12023 Wheelhouse Industrial LLC • 4439 US Hwy 12 SW PO Box 134 • WAVERLY, MN 55390 Contractor: &t,Ret utd Wheelhouse Industrial LLC 1/24/2023 Date ACCEPTANCE OF PROPOSAL: The above prices, scope, specifications and conditions are satisfactory and hereby accepted. You are authorized to do the work specified. Client: Hutchinson Utilities Date Wheelhouse Industrial LLC • 4439 US Hwy 12 SW PO Box 134 • WAVERLY, MN 55390 FM November 25, 2022 Hutchinson Utilities Mr. Mike Gabrielson 44-4th Ave. NE Hutchinson, MN 55350 Mr. Mike Gabrielson, Here is our bid to install the (5) platforms, (7) safety gates, (7) ladders, (1) set of stairs with railings to your plant #2. We assume that all the items we built according to the Krech Ojard Engineering drawings: G001, S101, S301, S501 and S502. Any additional materials needed or change orders will be an additional cost. We agree that the installation will be complete by May 1, 2023, as long as the items are made available well before that date. This bid includes the equipment and labor needed to complete the installation. Total Bid including sales tax: $86,100.00 Proposal is good for 30 days. We would require 50% down to begin this project. Final payment due within 30 days of completion. Please call me or email me with any questions or concerns. Otherwise, please sign and return at your convenience. Thank you for your consideration, Katie Mahowald Project Manager Signature of acceptance Date DEMOLITION REMOVAL HAULING HUTCHINSON UTILITIES COMMISSION��` Board Action Form �r�turscti mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Agenda Item: Approve GE LM6000 Contract Presenter: Mike Gabrielson Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: On January 25th the board approved awarding the bid to GE Packaged Power LLC for Oil Leak Repair Services on the LM6000. Since that time GE, IEM Energy Consultants, and HUC staff have been working to finalize a contract for the scope of work identified through the bidding process. Attached in the packet is the signed contract from GE. GE has met the obligations of providing the appropriate monetary thresholds on insurance and has provided the performance bond for the scope of work identified. Addendum 4 "Terms and Conditions" identifies the contract price. Staff is recommending board approval of the GE contract. Staff is anticipating the LM6000 to be scheduled for transport within the next couple of weeks from contract signing. BOARD ACTION REQUESTED: Approve and Sign GE Contract Fiscal Impact: $810,624.28 Included in current budget: No Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: GE Gas Power is pleased to present FIRM PACKAGE REPAIR PROPOSAL NO.: 1629294 Rev. 3 From: Packaged !'•.• Power, LLC To: Utility Commission Plant Power •. Plant, For: Oil Leak Repair and Depot Services GE PROPRIETARY INFORMATION: The information contained in this document is GE proprietary information and is disclosed in confidence. It is the property of GE and shall not be used, disclosed to others or reproduced without express written consent of GE. If consent is given for reproduction in whole or part, this notice and the notice set forth on each page of this document shall appear in any such reproduction in whole or part. The information contained in this document may also be controlled by U.S. export control laws. Unauthorized export or re-export s prohibited. N,, . A Subsidiary of General Electric Company Export License Exception TSU Applies February 16, 2023 Mr. Mike Gabrielson Hutchinson Utility Commission 225 Michigan St. SE Hutchinson, MN 55350 Subject:1629294 Oil Leak Repair and Depot Services Dear Mr. Gabrielson, rp .-," Cui s .13oWer Power Services Tiffany Riley Aero Derivative Service Sales Leader M +1 281 898 1693 Tiffany. riley@ge.com GE Packaged Power (hereinafter also known as "GE" or "Seller") is pleased to provide this revised proposal to Hutchinson Utility Commission (hereinafter also known as "Buyer") in response to your 12/12/22 Revised RFP for the Oil Leak Repair and Depot Services for Hutchinson Utilities Commission, Plant 2 Power Plant, Unit 1 SN# 185-111. This revision includes updated terms and conditions. This offer contains the items below: • Engine Removal & Reinstallation • Disassembly & inspection for oil leak repair • Minimum required and optional Service Bulletins • Hot Section Visual Inspection • Engine Test • Option for anticipated oil leak repair • Option for Full Hot Section Overhaul or Rotable Exchange We trust that you will find our proposal meets your requirements and look forward to working with you in the further on this project. If you have any questions regarding this offer in the interim, please do not hesitate to contact us. Sincerely, Tiffany Riley Aero Derivative Senior Sales Manager Cc: Iliana Ron, Senior Commercial Proposal Manager Joe Klett, Customer Service Leader Proposal 1629294 Page 2 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. ..................... ...................._._ E Gas Power ® " Table of Contents Article Page Number 1.Oil Leak Repair 4 2. Extra Work/ Optional Pricing 4 3. Optional Service Bulletin Pricing 4 4. Time & Material rates for on Site and Depot Work 5 5. Third Party, non -affiliate third party price adders for Extra Work 6 6. Commercial Summary 6 7. Description of Offering 8 8. Delivery, Title Transfer and Risk of Loss 13 9. Clarification and Exceptions 14 10. Project References 16 11. Tooling & Shop Capabilities 17 12. Addendum 1: GE Revised Scope of Responsibility 21 13. Addendum 2: Preliminary Schedule of Work 24 14. Addendum 3: Field Service Rate Sheet 25 15. Insurance Certificate 30 16. Bid Bond 32 17. Addendum 4: Terms & Conditions 33 Proposal 1629294 Page 3 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. ..................... ...................._._ E Gas Power ® " I. FORM OF PROPOSAL GE Packaged Power, LLC (hereinafter referred to as "Seller") is pleased to submit this Firm Proposal 1629294 to Hutchinson Utility Commission (hereinafter referred to as "Buyer)" for one (1) LM6000PA gas turbine at Hutchinson Utilities Commission, Plant 2 Power Plant, Unit 1 SN# 185-111 1: Oil Leak Inspection/Repair Site services: removal, reinstallation, and commissioning of Engine $62,521.88 3 days each Engine Test $37,462.50 2 days at shop Transportation $15,000.00 2 days each way Miscellaneous Hardware for Engine Installation $13,545.32 N/A 2. Extra Work / Optional Pricing 3. Optional Service Bulletin Pricing Proposal 1629294 Page 4 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. ..................... ..... ................. c �• Proposal 1629294 Page 5 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. ..................... ..... ................. c �• 4. Time & Material rates for on Site and De Work Field Service Labor GE Depot Houston $177 Genuine GE LM Unique Parts Current GE List Less 5% Genuine GE CF6 Common Parts Current GE List Outside Services Vendor Invoice + 15% For GE Time and Material Field Service Rate Sheet (2022), please review ADDENDUM 2. 5. Third Party, non -affiliate third party price adders for Extra Work 6. Commercial Summary If there are any conflicts between the terms of this Firm Proposal and the terms as stated in Addendum 4: Terms and Conditions, the terms of this Proposal shall govern. COVID-19 VIRUS: The parties acknowledge that the COVID-19 epidemic and government actions in response to it have affected and will continue to affect Seller's ability to deliver goods and services around the world (the "COVID-19 Impact"). Seller's commitment to the schedule obligations contained herein is conditioned upon there being no increase in the COVID-19 Impact on Seller's obligations under this Contract in excess of those currently known to Seller at the time of bidding. In the event of an increase in the COVID-19 Impact, Seller shall be entitled to an equitable adjustment in schedule and price, subject to Seller's obligation to work in good faith with Buyer to mitigate the impact on schedule and/or cost. This proposal document, together with the price contained herein, is valid for 60 days from date of issuance and assumes delivery on or before 2Q2023 based upon an induction date of 1Q2023. Upon expiration of this proposal Proposal 1629294 Page 6 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. ..................... ..... ................. E Gas Power ® " document, or for an induction date or delivery beyond the above date(s), a new proposal will be provided upon request Scope of Supply and Pricing Notes: • The prices are exclusive of any taxes, local taxes, VAT, Withholding taxes, levies or import duties for the seller's parts or materials. • TAT Cycle time is 150 days, upon Engine induction at the GE Service center. • This proposal document, together with the price contained herein is valid until 60 days from date of issuance. Upon expiration of this proposal document a new proposal will be provided upon request and the applicable escalation should be assumed. • The GEPP repaired asset is covered by an 18 months warranty from delivery or 18 months from first use whichever occurs first. • The GEPP repaired scope includes 100% GE OEM Hardware • GE Field Service support and special tooling are included • Package consumable kit required for installation of Buyer's gas turbine is included • The repair pricing listed assumes that the Buyer's components are in a repairable condition at the time that the engine is inspected at Seller's facility. Additional scope or higher scrap rate will be quoted to buyer in a separate proposal. • Pricing assumes that Buyer's asset contains all GE OEM Hardware and / or GE OEM Hardware with authorized repairs only. Seller reserves the right to adjust pricing if Buyers returned asset contains any hardware that does not meet the above requirement. Proposal 1629294 Page 7 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. ..................... ..... ................. E Gas Power ® " DESCRIPTION OF OFFERING BASE .5(.-(.)P F(.)R (WI. LFAK REPAIR 1. External inspection and photograph 1a. Flow Check Sumps and take Oil Samples 2. Disassembly of GT Into module form 3. Move modules to module workstations 4. Requote once all modules are disassembled & inspected 5. Workscope per IRM GEK 98492 and/or OEM Engineering standard shop procedures LEngine Induction & Disassembly V III: III Ill: 111....I1:.:C III N 111....I1:.:C'III" GL III 1111llili, V I Illili, IVI OIII° . IIL...I1::" 1. Visual inspect 2. Re -quote after inspections are completed III111l COIIL...IIL...I1:1.:t"III"0111 AS&IIiI.AWIi III,, 1. Visual inspect 2. Re -quote after inspections are completed V III: III IIIi 111,,111iIC 13YPASS V III,,VIIIiICS 1. Visual inspect 2. Re -quote after inspections are completed 3. Perform rig check II,,O CON?1::.:i O1111 11: 0"'III"0111 1. Minimal disassemble to remove cases 2. Clean and inspect 3. Balance rotor 4. Re -quote after inspections are completed CON?III::.:i 01111 11:' 111: 01 "'III" 11::111: I Illil[ 1. Visual inspect 2. Re -quote after inspections are completed 3. Perform pressure/flow checks 1::AN 11:': :) WII IIC)&III" 1 111:': "'III" AS&1IiIC AVM IIli 111,, 1. Visual inspect 2. Re -quote after inspections are completed Proposal 1629294 Page 8 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. ..................... ..... ................. E Gas Power ® " II'"UIII III'"I COIMPI II::.:i SSOIIII II: O"'III"01I: 1. Clean, Visual inspect components 2. Perform runouts 3. Balance rotor 4. Re -quote once inspections are completed II'"UIII III"I COIV ?I II::.:,SSOIII: S"'III"A"'III"01I1 1. Clean and visually inspect all components 2. Re -quote after inspections are completed COIVf ?I IIiICSSOIII: III::.:i AIIf II: III: AIVfllI:." 1. Disassemble into piece part level to repair oil leak 2. Clean, NDI and visually inspect all components as required 3. Re -quote after all inspections are completed COWII .JS"'III'"IIION CIII°IAIVfIIII III'.:I1 1. Visually inspect 2. Re -quote after inspections are completed S"'III'"A IIIiIC OI II:.:C I O' ' IIL...I1:.:C ASSIII:.:IVfIIll: III,, 1. Visually inspect 2. Re -quote after inspections are completed S"'III'"A II:.:C "'III"WO I O' ' IIL...I1:.:C ASS I1:.:C IM 13 II,, 1. Visually inspect 2. Re -quote after inspections are completed II"IIII G II"I II"LflI: III: IIII IIIiIC III: O"'III"01I1 1. Minimal D/A to remove S2N. Clean, Visual inspect components 2. Perform runouts 3. Balance rotor 4. Re -quote once inspections are completed II N IL... Illi'C"'III" GIIiIC A III: Illi O 1. Visually inspect insitue 2. Re -quote after inspections are completed II"ITIIIIIIALPIL...IIIC" S S"'III'"::IIM 1. Route MLSP for OH II,,O IG III III.''...SS ,III III.''.. "'III"LflI: III: IIII IIIiIC IMGIIN.fly L...IIIiIC 1. External inspection and photograph Proposal 1629294 Page 9 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. ..................... ..... ................. E Gas Power ® " 2. Minimal disassembly to remove TRF 3. Revised workscope 1. Disassemble into piece part level to repair oil leak 2. Clean, NDI and visually inspect all components as required 3. Re -quote after all inspections are completed 4. Install TRF onto LPT Stator/Rotor Module, balance module COIII::.:i wI III° . IIL...IIIiIC AS IIIiICW:III,, 1. Reassemble the core module per GEK 98492 2. Incorporate new consumable consumable hardware on all flanges 3. Incorporate new consumable consumable hardware on all piping II:': III NA IIL... I1:.:, NGII I I1:.:, AS IIIiIC W:III,, 1. Reassemble engine per GEK 98492 and/or OEM Engineering standard shop procedures 2. Incorporate new consumable consumable hardware on all split lines 3. Incorporate new consumable consumable hardware on all piping 4. Prep unit for test 5. Perform full load test of unit 6. Perform Post Test Borescope inspection 7. Prep to Ship Attachment 1 - Repair Service Center Detailed Workscope - GE Proposal 1629294 contains detailed workscope for the base scope for repair for oil leaks Proposal 1629294 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. ........................... Page 10 4..6 H"' T8 4..6 d M9/"' L B (.)T .S .., 4.-"rl (.) M9 4..6 kd d.., H A B R/"'k UI. S .- .6 Pd.., 5"'III"AGllfli ONllli'i NO' 'III,,Illili 55111:1.:] 111 lll,,Y (ASSUKIII° G, '15% II,44' 'z'zIL.II.. IFA II.11.. our) 1. Disassemble into piece part level 2. Clean, NDI and visually inspect all components 3. Route vanes for Overhaul 4. Re -quote after inspections are complete 5. Reassemble using new consumable hardware III"AGI:.:; "'III"WO I O' ' III,, III'„ III'„II IIII III,,Y ( w wUKIII° G, 15 'rA(.ull:. I w (.3,ll:. 2 ii..Illfm ii:) IFAII..11.. our & 25% VAINIE. IFAII..11.. our) 1. Disassemble into piece part level 2. Clean, NDI and visually inspect all components as required 3. Route nozzles for Overhaul 4. Route shrouds for Overhaul 5. Route inter stage air seals for Overhaul 6. Re -quote after inspections are complete 7. Reassemble using new consumable hardware 8. Grind shrouds and Interstage air seals to specified dimensions Ih"IiGIi IIi IIItIII.''...55 , IIItIII.''.. "'III"LPIItIIIi IIINIIIiIC IIItOIII"011 (ASSUIMIIII14G '15% 5"rAGIII:. 'I & 5"rA(.-,III:.2 III.3I1LA II)IIE. IFA II..II.. our) 1. Disassemble into piece part level 2. Clean, NDI and visually inspect as required 3. Dimensional inspect major components 4. Eddy Current inspect stage 1 & 2 disks 5. Route rotating seals for Overhaul 6. Re -quote after inspections are complete 7. Reassemble using new consumable hardware 8. Grind blade tips to specified dimensions 9. Final balance rotor assembly Proposal 1629294 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. .............. Page 11 c �• Attachment 2 - Repair Service Center Detailed Workscope - GE Proposal 1629294 contains detailed workscope for the base scope for Hot Section Overhaul repair Field Services The installation and commissioning is estimated at five (5) days. Depending on site conditions, personnel and equipment availability, the installation sequence and duration could be slightly different. Additional TA Services will be invoiced using standard Seller's Field Service Rates at the time of work. Rates current at the time of this proposal are provided in Addendum 2: Field Service Rate Sheet (2022). One (1) twelve (12) hour shift per day includes eight (8) hours of Straight Time and four (4) hours of Overtime Monday through Friday, Twelve (12) hours of Overtime on Saturday and Twelve (12) hours of double time on Sunday Buyer is required to provide the necessary site labor with legitimate qualifications to assist on the above installation tasks. Seller retains the right to approve any Buyer contracted labor working under Seller's technical direction. Seller does not accept liability for the actions of the Buyer's labor force SELLER'S SCOPE 1. Gas Turbine Removal GE proposes to provide the following services to remove the Buyer's gas turbine: • Three (3) GE technicians per shift, working one (1) twelve (12) hour shift • Gas Turbine lift fixture, dolly and tooling included 2. Engine Transportation to/from GE Houston Service Center • GE proposes to provide the following services to ship Buyer's engine to GE Houston Service Center • One (1) engine shipping container • Transportation of engine to and from GE Houston Service Center - Risk of Loss remains with the Buyer 3. Gas Turbine Installation GE proposes to provide the following services to install the Buyer's gas turbine: • Three (3) GE technicians per shift, working three (3) twelve (12) hour shifts • One (1) GE technician is provided for Gas Turbine alignment and startup • Gas Turbine lift fixture, dolly and tooling included 2. Changes a) The Price shall be adjusted as necessary to take account of (a) Change Orders, or (b) other adjustments specifically provided for in this Proposal. b) Changes to specifications, drawings, services or hardware will be evaluated by Seller for a Change in Scope to the Proposal. Seller will quote the changes and a customer Change Order must be received before work is to proceed. c) Storage Costs, additional travel, delays at work, unit restart delays and overtime work out of scope of the project will be considered additional work and will be charged according to Seller's published rates at time of execution and in lieu of any pre-existing agreement Proposal 1629294 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. .............. Page 12 E Gas Power ® " 3. Compliance Compliance and certifications are within current Seller's design practices and standards. The price presented here does not include compliance with any state or local codes unless expressly defined by Buyer prior to sale. DELIVERY. TITLE TRANSFER AND RISK OF LOSS 1. Delivery of Parts a) Seller shall deliver new parts or equipment to Buyer DDP (Delivery Duty Paid), place of manufacture or warehouse (Incoterms 2020) b) Transportation Costs will be invoiced separately c) Partial deliveries by the Seller will be permitted d) Seller may deliver all or any of the parts or equipment in advance of the delivery schedule 2. Title Transfer and Risk of Loss a) Title to Parts shipped from within the country of where the Part will be installed shall pass to Buyer when made available for shipment from the manufacturer's factory or the storage facility utilized by the Seller. b) Title to services shall pass to Buyer as performed c) Risk of Loss shall pass to Buyer upon the later of passage of title or delivery as defined above (Incoterms 2020) Proposal 1629294 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. ........................... Page 13 E Gas Power ® " CLARIFICATIONS AND EXCEPTIONS Return to GE takes exception to the March 1, 2023 return to service date. Our estimated return to Page 4 Service Date service is June 2023 and will be confirmed when the January outage and induction dates are confirmed. Regarding the Owner's right to be at Contractor's Depot at any and all times during the Owner's performance Work, for these inspections or visits GE shall attempt to accommodate Page 8 Responsibility requests by Buyer to witness GE's factory tests of Products, repairs or inspections at GE Depot, subject to appropriate access restrictions, if such witnessing can be arranged without delaying the work. GE will provide a warranty under these conditions: (GE Standard Terms & Conditions Article 5 Warranty) 5.1 Seller warrants that Products shall be delivered free from defects in material, workmanship and title and that Services shall be performed in a competent, diligent manner in accordance with any mutually agreed specifications incorporated into the Contract. 5.2 The warranty for Products shall expire eighteen (18) months from first use or eighteen (18) months from delivery, whichever occurs first, except that software is warranted for ninety (90) days from delivery; and the warranty for Services shall expire one (1) year after performance of the Service, except that software -related Services are warranted for ninety (90) days (as applicable, the "Warranty Period"). 5.3 If Products and/or Services do not meet the above warranties, Buyer shall promptly notify Seller in writing prior to expiration of the applicable Warranty Period. Seller shall (i) at its option, repair or replace defective Products and (ii) re -perform defective Services. If despite Seller's reasonable efforts, a non -conforming Product cannot be Page 8 9. Warranty repaired or replaced, or non -conforming Services cannot be re -performed, Seller shall refund or credit monies paid by Buyer for such non -conforming Products and/or Services. Warranty repair, replacement or re -performance by Seller shall not extend or renew the applicable Warranty Period. Seller's warranty obligations exclude the repair or replacement of any damaged parts or Products other than the initially failing part which caused the damage. Buyer shall obtain Seller's agreement on the specifications of any tests it plans to conduct to determine whether a non-conformance exists. 5.4 Buyer shall bear the costs of access for Seller's remedial warranty efforts (including removal and replacement of systems, structures or other parts of Buyer's facility), de installation, decontamination, re installation and transportation of defective Products to Seller and back to Buyer. 5.5 The warranties and remedies are conditioned upon (a) proper storage, installation, use, operation, and maintenance of Products, (b) Buyer keeping accurate and complete records of operation and maintenance during the warranty period and providing Seller access to those records, and (c) modification or repair of Products and/or Services only as authorized by Seller in writing. Failure to meet any such conditions renders the warranty null and void. Seller is not responsible for normal wear and tear. Proposal 1629294 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. ........................... Page 14 c �• M 5.6 This Article 5 provides the exclusive remedies for all claims based upon the failure of or defect in Products or Services, whether the claim is based in contract, negligence, statute, or any tortious/extra-contractual liability theory, strict liability or otherwise. The foregoing warranties in this Article 5 are exclusive and are in lieu of all other warranties, conditions and guarantees whether written, oral, implied or statutory. NO IMPLIED OR STATUTORY WARRANTY, OR WARRANTY OR CONDITION OF MERCHANTABILITY, QUALITY OR FITNESS FOR A PARTICULAR PURPOSE APPLIES GE Excepts to perform the following activities according to the Division of responsibilities, and assumes Buyer will provide the following: - Portable Crane with operator as required Division of - Fire watch personnel (Not required) Exhibit 2 responsibility - Craft labor & supervision (Not required) - Remove/replace turbine compartment roof, side panels and end panels (as needed) shall be executed by both parties - Rigging, chokers, slings, come -a -longs, chainfalls, etc. (must have current inspection stickers) shall be executed by both parties GE excepts to attach seismic recording device to the gas turbine during transportation. In 1.2.5 lieu of the seismic device, GE guarantees transportation of the gas turbine in compliance 1.5.2 Seismic Device with the requirements of GE LM6000 PA Operations & Maintenance Manual GEK 98493 1.5.5 by using an OEM approved engine shipping container (per section 6-2.1d) and air ride trailer (per section 6-2.3b). Proposal 1629294 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. .............. Page 15 Proposal 1629294 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. .............. Page 16 VI. TOOLING &SHOP CAPABILITIES AER0 Al L l A 1'4 C E Aero Products and Services JV. LLC JUAC YOCCO Sen�or Commemiall Contrut Manager 910a Centre Pwnte Drimt, Suftm 260 we", Chester, OK 45069, USA C 515-W7-0543 juke'vwMege.com June 3, 2021 To Whom, it May Concern, Subject, Gulf PACKAGED POWER, LLC - Service Center Authorization and Capability On November 1, 2019, Baker Hughes Company and General'! Electfic Company ('GE"), acting through its GE Gas Power divivion J"'GE Gas Po%*r") created a foinfly-owned and operated joint venture called Aero Products and services JV, LLC ("Aero Alliance") for aeroderivative turbine technology that serves as a center of excellence for engines, aftermarket services, parts, repair, testing aind overhaul and new product development of aerocierivative products Aero Alliance owns andI operates ire'pailir service center's that are authorized and qualdied to provide full level 4 niaintenance,, repair, overtiaiuJ, and! test capability on the spedfied models lot the Li' 21500ILM125M*, LM25,OD+G4 and IM6000 tami0v of Gas Turbine, gas, generator and Power tuirbine products, Aero Affiance p,erformis these services on aeroderrvative Products for Baker Hughes and GE Gas Power and their respective custarners at its globall fadlities, including at the folio wing, locations 1. Aero Alliance's facility located luny Houston Texas, USA, whichi is authorizedi to service, repair, overhaull, and test all Models of LM2500, LM2500+, LM1250G+G,4, LM500�, LM6000 LMS100, including SAC and DLE model , gas generators andl gas, turbines for industrial operators, 2. Aero Alliance's facility located in Massai, ltalV, which is authorized to service, repair, overhaU and test all Models of LM2500, L1 2'500+, LM2500+G4 lnctuding SAC and DILE rnodeils� gas gienjerators, and gas turbines, for industfial operators, Aero AdIfiance has appointed GIE and! its affiliates as the sole, and exclusive distdbuto,r to its custorners for applications, in the Power Segment for aeroderivative gais turbines, spare parts ands services. As such, GE PACKAGED, POWER,, LLC, as a wholty-ownedl affiliate of GE, is authorized to offer arndl providle the above services, to fts custorners. With regards, J Juliue Yocco Proposal 1629294 GE Proprietary information .................. Proposal Page 17 .......................... Proprietary Houstan Service Center - Jaciintopart 35years of, oper,at"lon wid''I fUll scope aer-o service capabdifles T'heMewsfon �� wu.e Center CH9-ls&xedcm67 wares and "Pie ad ,,Ycrv,s 14b1jfldMgs,MIh andwlirm,age o,sap o base � G,&, p max rPAP+ , vi,d IL a u r, z rawaw w en?lrmsa shqpecB ov Wo modifles ge.corn/power IH,'SC SODIpe., CyT,"je, � r""'Ip"a4 s hn,r aIMI, Modwe, exct�arpqo k c,,,,pta * tesbig 114aip"'q cu;"rhauts HIX, Se,"I"fron G",vo,,�rhauis Product repair capabifirdec � fF)A PH, L."I"t? SO"'), +G A Proposal 1629294 GE Proprietary information .................. Proposal Page 18 .......................... Proprietary c �• Tooling catalog available for GE outages for LM6000 Engines - LM6000/LMS100 Hot Section Workscope tooling - Engine or PT Exchange Workscope Tooling - Semi -Annual package Inspection Tooling - Annual package Inspection Tooling - Special package tooling work packages — PTK, FTK, ADRE, Emissions, etc - Standard package tooling work packages — Fanuc, Genius, etc - Low Pressure compressor workscope tooling - Turbine mid frame workscope tooling - High pressure compressor workscope tooling - Borescope or boreblend tooling - Level 1 work package tooling - Oil systems flush (Turbine or generator) - Other tools. Tooling rental fees included in GE Standard Rate Sheets Proposal 1629294 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. .............. Page 19 E Gas Power ® " PURCHASE ORDER SUBMITTAL AND ACCEPTANCE Please address your purchase order in US dollars to: GE Packaged Power, LLC 16415 Jacintoport Blvd Houston, TX 77015 e-mail to: tiffany.riley9ge.com The Purchase Orders must make a reference to this Proposal 1629294 Rev. 2 and Addendum 4 Terms & Conditions. Seller will issue Order Acknowledgement to Buyer within 10 business days from receipt of the Purchase Order. An invoice will follow within 15 days of Purchase Order acceptance. In order to help us expedite acceptance of your purchase order, we have found that if the following information is incorporated it will prove to expedite the order acceptance process: • The GE business entity and address as stated in the proposal • Annotate the Proposal Number on face of purchase order • Acceptance of Terms and Conditions per this proposal This proposal submitted by: Name: Tiffanv Ril Title: Aero Service Sales Leader For: GE Packaged Power, LLC Date February 16, 2023 Upon acceptance, this Proposal shall constitute the entire agreement between the parties and any understanding, promise, representation, warranty or conditions not incorporated herein shall not be binding on either party: This Proposal is accepted by: Name: Title: For: Date Proposal 1629294 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. ........................... Page 20 GE Power Services ADDENDUMI. GE Revised Scope of Responsibility Item Responsibility HUC GE Record baseline operating data including: 1 Vibrations ❑ Performance/heat rate data Operating pressures and temperatures 2 Site Access 0 3 Site Security 0 4 First aid (limited to first aid capabilities existing at the Site) 0 5 Trash Receptacles 0 6 Provide office space for Contractor 0 7 Change area/break room for crew 0 8 Provide phone/fax/computer and internet connections 0 9 Provide phone/fax/computer hardware ❑x 10 Lavatory/hygiene facilities for Contractor's work crew 0 11 Provide adequate lay down area for parts 0 12 Plywood for parts laydown 0 13 Cribbing 0 14 OEM approved Engine Shipping Container ❑x 15 120/220/480V electrical connection at voltage levels currently available 0 16 Service air and service water as required, as available at pressures and volume 0 17 Light stands/generators 0 18 Protection from the elements for the parts in lay down including space heaters as required 0 19 Protection from the elements for work in progress 20 Site safety orientation 0 0 1629294 GE Proprietary information ........ ..............._._ ................. ................. .............. Page 21 GE Power Services 21 Contractor safety program ❑x 22 Lockout/Tagout, LOTO, (electrical, fuel, etc.) (by Owner supported by Contractor) o 0 23 Personal Protective Equipment (PPE) 0 24 OEM literature including Operation & Maintenance Manuals and SBs (Contractor to sign for receipt and ❑x acknowledgment ofsame as applicable) 25 Specialty tools in Owner's possession (as appropriate, to be load tested) 0 26 FME procedures 0 27 Fencing for work area and FME area(s) (if required) 0 28 Required fire watch personnel n/a 29 Engine removal and installation procedures 0 30 Field Service Engineer(s) 0 31 Other engineering and technical support as required 0 32 Craft Labor & supervision n/a 33 Electricians and I&C technicians to disconnect/reconnect instrumentation, devices and Gas Turbine isolation 0 34 Electrical disconnect and reconnect wiring & conduit necessary to support Contractor's work scope 0 35 Maintenance consumables, (e.g., cleaning rags/solvents, honing stones, etc.) 0 36 Hand Tools 0 37 Power Tools 0 38 Outage tool kit appropriate for inspections and work scope (if not provided by Contractor) 0 39 Oil Spill Kits 0 40 Welding machines ❑x 41 Consumable gasses for welding, heating or cutting 0 42 Scaffolding -Installing and Removal 0 43 Scaffolding -Plan, schedule, and direct 0 44 Fork lift with certified operator 0 45 Portable Crane with operator as required 0 1629294 GE Proprietary information ........ ..............._._ ................. ................. .............. Page 22 GE Power Services 46 Rigging, chokers, slings, come -a -longs, chainfalls, etc. (must have current inspection stickers) o 0 47 Service Bulletin review report and implementation plan o 0 48 Remove/replace turbine compartment roof, side panels and end panels (as needed) o 0 49 Site clean up ❑x 50 Visual Inspection ofthe Gas Turbine o 0 51 Restoration of power to all systems ❑x 52 Control System calibration of IGVs, VBV & VSV ❑x 53 Place Gas Turbine on turning gear ❑x 54 Perform pre -start checks ❑x 55 Start Gas Turbine and perform zero to FSNL checks (Contractor to assist and observe) ❑x 56 Leak check all areas ofturbine at first operational run (At crank speed) ❑x 57 Perform full speed no load checks(excitation, etc) (Contractor to assist and observe) ❑x 58 Perform any trim balance which might be necessary (Extra Work) 59 Final Unit alignment 0 Record baseline operating data including: 60 Vibrations ❑ ❑ Performance/heat rate data Operating pressures and temperatures 61 Technical support for startup support (as necessary Extra work) ❑x 62 Waste removal ❑x 1629294 GE Proprietary information ........ ..............._._ ................. ................. .............. Page 23 GE Power Services ADDENDUM 2. Preliminary Schedule of Work Date Task�• Party �. Remove engine from site =Induct Engine to L4 Depot ©Ship engine to siteInstallation Startup 1629294 GE Proprietary information ........ ..............._._ ................. ................. .............. Page 24 GE Power Services GE Rower ADDENDUM 3. Field Service Rate Sheet (2022) M STANDARD RATE SWEET GLOBAL, FIELD SERVICES FOR AERDIDERIVATIVE GASTURINANE S GE's grobal servicies netwcwk is desgned to anticipate and respond to ma custairner"s iweds throughout the We cyrIle UFGE's LW wrifyrres and packages. GE's woridwide revirces team vupp)ies the ficeiest W, 'afiry I too's aind tec"'hirlical supportwhitch, is ckrsOp bed to ow wvlice mr, teams This may I lin Ngi,*r avaii4biljty anid looter C. d5n.'i for you, our rustf.ri P14asA- ciorri ytAur service nrl fteany ofw.pur 5envice, n*,*.,ds, 24 hrjiur5 a day, 7 days a week Cvffenino GE's &bal services noleii is dedcatod to reispondmg to your neads in an expediient manner Our fie�,,d I affe6i h,@,Op decrease your di:Twisfinre and I a lower cost operation by prniuiidinjg. fuH NN.hrl coverage far vour enpine and parkap Our serrwric undude but are runt lirrked trx Pei inspectrons at thpentr* ed parkaje,but sectron inspections, gerrerartor tw and lirspecticn, It= i wliraOorr si perforimaAri I rontrWs .01brartsion, and allt le* I & 2 maiiintenance, In: resIll 10 our CuStOOM S' uequest frog flieKibillity irt comni offewings, GE's I servircee ii now providt-s. theoptio" fol, (FFP)i I Fixed Pirkiiing on irlarry work stones, As &v;tam p, Labor Rata Per Hour RatpClaisificaicon Straight Tmrriie Fi*,)d RepresA,ri !!1304 Spedaity Fielld IRep $1435 SIte Manager $447 Mob,ihiation Fee $453 All charges are I EffeaAe I a, WZZ PI-0130sal 1629294 Ove,r Time DolAW4, Time $456 $608 $EE7 $971 $671 $8,95 incremental Challe's H 15 ei i ity Emergency Areas Cat'll-out Ofthorisl Man Camps 2S'% 201% 1710% 251% 201% 20% 25% 201% 20,46 Page 25 N GE PrODrietary information GLOBAL FIELD SERVICES �FOR AERODERI�VATIVE GAS TURBINES GE's gtoball wvkes inietwoA provides Iuult deg levelis af te'Chinicall SUIPPact f0d youir aerodellivative gas turlshnies aSWIllows- Fle',W spnvices jrejp�ies�,mlativf, Pvforrn the mauntenari action as impill as pwi&Ad* techinkal adviJce based on, gODd enipini.,rermg urhF �,.nste'Ution and ., mar t op,erat,on prartces aippliilcaWe to the equilpmeat Such serviices allso inirludie tWing, adjustirniont,, and ivistallaition and start-up, Reld engineering services does inat lmlude suiperwsion of purchaser"s ali or other contractois.. I's, id, repi, esenrafive May be any of the f6illavan& Gas Wrlloi)" DIE mailsoev. Spedialliet skAked vin methods required for adpsting the diry Ihow INOx syst,Hr tiro lhosllfu opfirnize gaps tuirlitme, emrssifons aind life, expectsm,'y of cornioustion symern cnirripanents, Laser alignmont Specialists utRizing GIE proprietary digital Lasef atlgnmeit equiprinent, tedmdogy, and fees data, tal hellp aptimli lnternad cornitienent a1iigrirniF.mit and potemli praqkde siginr6rairn reductiors my outap dvfation over comwtional alligniment methi ContrWa programmling Bv,o-blpind, Spii trared at blending damage to the IHPraLPC b4ades through tht Ihourescopre poirts. Excftatiorc Spedalfists A W*A un the start up and troublesho*png of excitation system is 6riterfacrrig dircuirts, bfrea4m, and Paweqi systems, Vl,biraitiom Specia5fists expefienced iin vibratron diata acquield'an, wbration rnachinjery dlapNos fics, rotor balance, ainatysis, and recornmer(datians ,,.)n 6nstaflation Df balance "i0ts Magnastks: Spedalflits skillNed m perfi d4grrssfir tests Efftfctcve SeMember V, WZZ S.Ae managv' Kanages MI aspK.'V, of GIE's FieW services wvk and cu.m,rdoiialjes afl GE actrotvies on s#t#, Notes: rates The norm M Work Lek is filve ronsecutwip, ellght-houir dme; (tvpcat to "'Cr(k C014mrves' Clontert yout 00'eftwna1 Custori servict Manager, Time lin excess of the normaf warkday/work week IN The bill4ed at the oveftime rate, Ovef `rme PDT) applies to b0laiWe houra on Saturdays and rorma9 workday hours reaten than 8 hours and less thain 121 hours. DouWe Time (DT o a pplies to bUlab 4 ftotvr, s cm Sundain, holidays and noirrinal worMay hwars greater than( 12 hours, Minfirnuin tiwi ge A md ni charg? of 4 hours strain%ht Wri e pI us per dern and V av ie,B expense is charged from any service jioio. Offshoir e iris or hIs and work in ig.Aated areas Mth man-camlpr. sr ilH be ctwarge4l a rnbromurn 12 Ihours per Idray, gabillzata"'on fee MotMizatkoin foe cofinsi4ts of havir job pfpparatifon onrkAvnd but not limited tm normaiii musk assessnients or i statements; ervAronmvntal, health and safety peparxition,' ti and i cooriInafio.-m ,arid i estocildin& Thk fee is imfoiced on a per dispatz,hi basis in the amouvt of!$Al2, Wairtaig "Imie'/io sn�dby tone ffthe i5eld service tjechmciian is Irequaested to wain at the site dti waiting time imll be char at Irminwmrum 8 ttouirs, pfer day at the apphicab$e rate (Le,, standard rates indludling apWfkabie mui*T)leysb as set fortlh iin the rate shi ff the custorneF does not request the lechniii to waft, i chafles wiNi The due, the techniciian MNI not The avaigalbile Ijawork and, she techinician its consii&.red un-ass-,ligned and free to Idwa assig7,*d to other projects, Warbing firme on offshrKe floa6rijig,„*sse4s, stationary rip, and at Iisollwted snes with main-c amp lii,Ang facftles wfl$ be charged a nifinflmum 12 hours, per day. To rNinimize tra,* expenses, non-wca Ikeilng dabs scheduled in advwKe, duce, as weekends or ho4days spkected as Don-woriding days, MH inat linicvr milinimium INofirly charges but the per dijern will stiff aily, ZY'S Proposal 1629294 GE Proprietary information ............. Proposal Page 26 .......................... Proprietary STANDARD RATE S�HEET GLOBAL FIELD SERVICES FOR AERODE'all VATIVE GAS TURBINES ViVi'.'wk,ling houirs liNdiV41a i M MJ MUM W'Dirk'Jing hours are 12 hovers per day 1101 to exceed 84 hoiLas l fiscak wepk. Exceptions to the in%axirn, UM 12- holuir "6rdaiy must be algreed to PRPOR to work ciommenchnig with the Iregionai customier service, i up to, a i,, rt o,f U i per day r oiodhAdvall (foiflowed by, an appropriate 10-how rest cycfe) but not t!o exceed 84 Now s peer week, Unhess otherMse contracted, wn6ding hours do niot iniciude the foRoliming lurochi or daifly travel less than 50 rniinfuses per leg between pjodgj�ng and work locaton, Con ract your iocaI, regfonali fietd, service office far further ctar6catlon dn situations where Iholrai regulliations or customer polficies exist Iredardirng on-dav� hm,,,itaitions, the more roniservab%* W. ocedure si ta i precedence Travel vine TrswvP4 time wiNI The charged at the straight time rate as set forth in the rate sheet, on a, rouind trip i froumn the G E representaltive's point 04 dispatch, experfses AD transpoirrabon (i.e., i airlaire, train, taxi, ferrv, rentai cair', etc.) expenses for sach dApatich are invoiced at icost l '15% PovVeal IM I be invoiced at $1,47 Iltrafisilrnile. whon techiniotains trawed to customer site ivia autom obd e, Hol"Idays Haillodays are, ciountry specific and ftuW* true rate's are appilkahfe, A holliday schedu lie for each courytry Ican be provided i upon rtqiwes t. A reficim, d".m.ed to i a subsitantiall le,,* ofsecurity, i inherent with the liocatrewom voill be assessed a mr,,nimiurn iS'% wcurity fee On all laboir hours, U,,4irqg, exjpenses. lPeir dl*m will be bill)[od foir ajryi of a day, worked inctudiing trisjw*4 daivs. This dailV cha,irge us for norma$ dan lV expenses such ass io,4,ng, i fawndry, i cimmmuni�caboni expeirtses, fue,4 for rental car, and reawnaWie irload toft for ab daysAny other didy expenses w,H 11 be invoiced at cost pfus IM Rejui* per dl $253 USD pen day per eri Hil cost per them (Apipbes wtwn Joidging cost is more than $134) USD pef night, includling taxesJ,11per pprsoN,, $330 U50 Per jday i emp bivei? Rw w t and recseatwffnl Due, to ]otap Iabor lawsw Ervhionments,,I IHeaktld aii Safepg (EHS,) reguilations or E piolicy, fl*d service personfr,6 wifl i to rotate out of wv.k sates on Rest and RecreabionfRUji after beinIg ansifte for a certain idluiration tirne Illrrsluch c nrcujnnistances, costs related to R'&R, traveiwiNl be charged to the i at the current prevralillmnig rates llflWsonfn,e&doneat travel afwayfrojmth# warksite, lbut Mso idol inot work, on these dawns„ i charts wfl$ root appVy but thie per diem rateM [I The approicaWe, Empfgency cafl-out Dispatch infth less ttrain 4,8 hoiuTs° nallice will bes assessed a 20% emergency caj0�oul Fee oin Ilabor hours only. ('),flshforie & man camps Arty tabor for work sitiss located an offshore foiadnig vessels, vaticifnary rip or [.n usollated areas vAth main-carnp fiving,faidillitiles, w0l lb* assessed a Z0% fee For 0 hours on site. Purth&sed rrv,&%eirjiats & contractud w"O'Ces: WHI be billed at cost panes 50%, Purchased rnateriaifs wwVdes non - Catalog ittirris prowred forth* project/work location typicafily from OC64 SUPPdY, Contracted Sefviives inchides rwon-GE Aeminavr- Reid(.'ore services and i 3rd l Suppliers and other GE owned or affiIiiated eintities (e,;, Bentley i APM,, ctaints, testing serwi,ces, criwft Radnor seroces, etc Lion EffrMive k-,p"mbv 10-MU P"s GE Power Services MAIMMM O"a MWITHURTHMEMYSURM GLOBAL FIELD SERVICES FOR AERODERIVATIVE GAS TURBINES Rx,fing Rental ft^es - rnmsacdranai & CSA GE rents lei* I and level 2 special toMs at comjp*titive rates These toolls are ava4aib,4 thro4ighyw respectve Service Manager. Too6ng ;widrog us based ion work scale as fisted in toirjkng rentaf table (Transactional & CSAg, Usted Ipirrece 1providies serial tooling to cornp4te contracted scope ofwork for the rvoii rnal. rna 'intenance duration. Too,fing irepummiredi on site Ibehondl the normal' duirefion fl mmeekj of the corytt. atted scolpe, of work willl be assessed a daiply flee. GE's technix: Rt representative must acc wriparry aH renta Vs of G E tooling assets- Too4,ig us not rented sepaeattly for di4r*ct cuvtriner USe. GE rents IPoel I and l 2 speciall tools at ComiWitAwe rates. These toolls are aval4albIe thfraughyaff respartirm project manager. Toohng pirlidnog in based on work sirjqpe as fisted in toofing remal table lln & ciornmesorriing O&Q IListed price p;vAdes speciall tookn1l; 11D complete COntracred scope of wrxk, Tooling reqUlred on Sits MH The assessed a woOdy fee,. GE's technical rppresentative must airjoomparwV ah rentais of GE tooPing assen TooljtGing is not rented separRtOy for dlrect custtamfpr us,e tciohng Rental Fewi , Trimsactional & U5A Effec 6 *vwiber P, 2W2 A11 oustoms, dut*s and handUng fees urrcurred kv GE on thp process of jimporting or exporting too,'Ing or goods on behallf iiA the rustoirno,ir inicMuding exre&s baggage and custamis dutas hor hand rairided otefns, MR be, mvo aced at cost pius 15% haindfing fee,.. Earns and ar nitutnrrrrs Customer seriare support i�s subject to standard terms and conditiors - Products andkx Serwces Terms and Corditifons oipTSC� 7hese p6ces supemede, all previcrusN pubbshied p6ces fvx, this same service The 1prrres of adft#oinaH or inewly establ,ished service WM Ide wdarlabf* on a quotatifon hasis and may be subjert to rvqhOion untill such trne as they are incorparated intro the newt fissure of this prke shapt The pores vndixated are lnit unit prices and are sUbjert to change %Mtholult notice. 4`5 Proposal 1629294 GE Proprietary information ............. Proposal Page 28 .......................... Proprietary GE Power Services mf,aam STANDARD RATE SHEET GiLLIFIELD SERVICES FOR AERODERIVAT'IVE GASTURBTINES Tood" ir�'ntal proc)"'ng ., Im°&Yr SB. rrsrGl &CSAI, - C'DMkILIed Trad ren'tal ;Oanjg Ur[staflztfjan & commsskynfwq EffrCe,lot S"Mkw V, 2M2 5/5 Proposal 1629294 GE Proprietary information ............. Proposal Page 29 .......................... Proprietary GE Power Services ® " A �® CERTIFICATE OF LIABILITY INSURANCE DATE 12/15/20 2W) THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER Electric Insurance Company 75 Sam Fonzo Drive Beverly, MA 01915-1000 UUN 1A -I NAME: Denise Kelly PHONE FAX (A/C, No, Ext): (A/C, No): E-MAIL ADDRESS: INSURERS) AFFORDING COVERAGE NAIC # INSURERA: Electric Insurance Company' 21261 INSURED INSURER B: A.M. Best FSR of A (Excellent), ICR of a+ GE Packaged Power, LLC 16415 Jacintoport Blvd INSURERC: Houston, TX, 77015-6589 INSURER D: INSURER E: United States of America INSURER F: COVERAGES CERTIFICATE NUMBER: 22-16460 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPEOFINSURANCE ADDLSUBR INSD WVD POLICY NUMBER (MM/DD/YYYY) (MM/DD/YYYY) LIMITS COMMERCIAL G ENERALLIABILITY EACH OCCURRENCE $2,500,000 CLAIMS -MADE X � OCCUR PREMISES (ERENTED occu ence) $50,000 MED EXP (Any one person) $10,000 A X GL23-1 1/1/2023 1/1/2024 PERSONAL &ADV INJURY $2,500,000 GENERALAGGREGATE $5,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: X POLICY PRO LOC u JECT u PRODUCTS - COMP/OP AGG Included in Gen A . $ OTHER: AUTOMOBILE LIABILITY (Ea accident) $2,50Q,000 X ANY AUTO BODILY INJURY (Per person) $ A 1 OWNED SCHEDULED AUTOS ONLY AUTOS X ML23-2 1/1/2023 1/1/2024 BODILY INJURY (Per accident) $ PROPERTY DAMAGE (Per accident) $ HIRED NON -OWNED AUTOS ONLY AUTOS ONLY A X UMBRELLA LIAB EXCESS LIAB X OCCUR CLAIMS -MADE X XS 23-1 1/1/2023 1/1/2024 EACH OCCURRENCE $2,500,000 AGGREGATE $5,000,000 DED RETENTION$ $ A WORKERS COMPENSATION AND EMPLOYERS' LIABILITY Y/ N ANYPROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? ❑N N/A WC 23-01 1/1/2023 1/1/2024 �/ X STATUTE EORH Statutory E. L. EACH ACCIDENT $2,500,000 E.L. DISEASE- EA EMPLOYEEI $2,500,000 (Mandatory in NH) If yes, describe under DESCRIPTION OF OPERATIONS below E.L. DISEASE- POLICY LIMIT $5,000,000 A Professional Liability N/A GL 23-1 / XS 23-1 1/1/2023 1/1/2024 EACH CLAIM & AGGREGATE $1,500,000 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) Solely to the extent required by the underlying contract with the Named Insured, this insurance shall provide coverage on a primary and noncontributory basis. The policies referenced above have been endorsed to provide the following notice of cancellation to the certificate holder: Should any of the above described policies be cancelled before the expiration date thereof, the issuing insurer will endeavor to mail 30 days written notice to the certificate holder, but failure to do so shall impose no obligation or liability of any kind upon the Insurer affording coverage, its agents or representatives. Please see page 2 for additional insureds and any additional language. CERTIFICATE HOLDER CANCELLATION City of Hutchinson 225 Michigan St. SE, Hutchinson SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE Hutchinson, MN, 55350 THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN WITH THE POLICY PROVISIONS. roposal 1629294 ....... ......... ......... ......... ......... .........Pag I�ACCORDANCE 3VHORIZED.R.EP.RESENSAM.Y.E.......................................... v ACORD 25 (2016/03) ©1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD AGENCY CUSTOMER ID: LOC #: ACoOJ? o ADDITIONAL REMARKS SCHEDULE Page 2 of 2 AGENCY NAMEDINSURED GE Packaged Power, LLC - Houston (16415 Jacintoport Blvd) 16415 Jacintoport Blvd POLICY NUMBER Houston, TX, 77015-6589 United States of America CARRIER NAIC CODE EFFECTIVE DATE: 1 /1 /2023 ADDITIONAL REMARKS THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, FORM NUMBER: 25 FORM TITLE: Certificate of Liability Insurance Subject to the insurance policy terms and conditions, the above referenced General Liability, Excess Liability, and Automobile Liability policies shall include the Certificate Holder as an additional insured, but only to the extent required by the underlying written contract with the Named Insured that is in place prior to an 'occurrence" giving rise to a loss. Additional Insured coverage does not apply to Professional Liability. Contract Number: RFP-Depot Services 12-12-22 GL Coverages: a. Premises -Operations b. Products/Completed Operations c. XCU d. Blanket Contractual Liability e. Personal and Advertising Injury Limit f. Independent Contractors g. Separation of Insureds / Cross Liability h. Sudden and Accidental Pollution Liability Auto Coverages: a. Symbol 1 - All Vehicles Excess Liability: a. Following Form WC Coverages: a. USL&H b. Products/Completed Operations c. Outer Continental Shelf Lands Act d. The Workers Compensation policy provides coverage in all states where the insured has operations except for monopolistic states (ND, WY, PR) and states where the insured qualifies for self -insured status (OH, WA) e. Employers Liability coverage is provided in all states where the insured has operations roposal 1629294 GE Proprietary informatlo ..............._._ ............. Page 31 ACORD 101 (2008/01) © 2008 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD GE Power Services ® " C•C• • w�m I Document A310T'� -2010 Bid Bond CONTRACTOR: (Name, legal status and address) GE PACKAGED POWER, LLC 16415 Jacintopport Blvd Houston, TX 77015 OWNER: (Name, legal status and address) HUTCHINSON UTILITY COMMISSION SURETY: (Name, legal status and principal place of'business) PH ILADELPHIA INDEMNITY INSURANCE COMPANY This document has important lee One Bala Plaza, Suite 100 Bala Cynwyd, PA 19004-1403 consequences. Consultation witf an attorney is encouraged with respect to its completion or modification. 225 Michigan St. SE, Hutchinson, MN 55350 Any singular reference to Contractor, Surety, Owner or BOND AMOUNT: Five Percent of Amount bid other party shall be considered (5% of Amount Bid) plural where applicable. PROJECT: (Name, location or address, and Project number, if any) Oil Leak Repair and Depot Services For Hutchinson Utilities Commission Plant 2 Power Project Number, if any: Plant, Unit 1 The Contractor and Surety are bound to the Owner in the amount set forth above, for the payment of which the Contractor and Surety bind themselves, their heirs, executors, administrators, successors and assigns, jointly and severally, as provided herein. The conditions of this Bond are such that if the Owner accepts the bid of the Contractor within the time specified in the bid documents, or within such time period as may be agreed to by the Owner and Contractor, and the Contractor either (1) enters into a contract with the Owner in accordance with the terms of such bid, and gives such bond or bonds as may be specified in the bidding or Contract Documents, with a surety admitted in the jurisdiction of the Project and otherwise acceptable to the Owner, for the faithful performance of such Contract and for the prompt payment of labor and material furnished in the prosecution thereof; or (2) pays to the Owner the difference, not to exceed the amount of this Bond, between the amount specified in said bid and such larger amount. for which the Owner may in good faith contract with another parry to perform the work covered by said bid, then this obligation shall be null and void, otherwise to remain in full force and effect. The Surety hereby waives any notice of an agreement between the Owner and Contractor to extend the time in which the Owner may accept the bid. Waiver of notice by the Surety shall not apply to any extension exceeding sixty (60) days in the aggregate beyond the time for acceptance of bids specified in the bid documents, and the Owner and Contractor shall obtain the Surety's consent for an extension beyond sixty (60) days. If this Bond is issued in connection with a subcontractor's bid to a Contractor, the term Contractor in this Bond shall be deemed to be Subcontractor and the term Owner shall be deemed to be Contractor. When this Bond has been furnished to comply with a statutory or other legal requirement in the location of the Project, any provision in this Bond conflicting with said statutory or legal requirement shall be deemed deleted herefrom and provisions conforming to such statutory or other legal requirement shall be deemed incorporated herein. When so furnished, the intent is that this Bond shall be construed as a statutory bond and not as a centurion law bond. Signed and sealed this 23th day of November, 2022 QJ C GE PACKAGED (Principal) (Witne, s, (Title) PHILADELPHIA INDEMNITY INSURANCE COMPANY (Surety) (Seal) (Witness) Anne Potter LLC (Seal) (Title) Francesca Kazmierczak, Attorney in Fact AIA Document A310- - 2010. Copyright © 1963, 1970 and 2010 by The American Institute of Architects. All rights reserved. Proposal 1629294 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. ........................... Page 32 Addendum 4 Terms & Conditions This Transactional Agreement (the "Agreement") is made effective this 16th day February 2023 (the "Effective Date") by and between GE PACKAGED POWER, LLC, a corporation organized under the laws of Delaware ("GE"), and Hutchinson Utilities Commission, a utility owned by the City of Hutchinson, MN organized under the laws of Minnesota ("Owner'). (GE and Owner), are, collectively, "Parties" and individually, each a "Party".) In consideration of the mutual promises and agreements contained herein (the sufficiency and adequacy of which is hereby acknowledged by the Parties), GE and Owner agree as follows: ARTICLE I SCOPE OF WORK HUC has awarded Article 1, Oil Leak Repair and Article 3, Optional Service Bulletin Pricing, as set forth under the GE Proposal NO.: 1629294 Rev. 3 dated February 16, 2023 (The "Proposal") to GE for the Oil Leak Repair and Depot Services for Hutchinson Utilities Commission, Plant 2 Power Plant, Unit 1 SN# 185-111, which is located at Owner's Plant 2 facility (the "Facility"), which is situated on the real property located at 225 Michigan St. SE Hutchinson, MN 55350 (the "Site"). The value of this award is eight hundred ten thousand six hundred twenty four dollars and twenty eight cents (810,624.28 USD). The Proposal as Appendix 1 and Request for Bid as Appendix 2 are attached to this Agreement. In event of any conflict, the Request for Bid, as amended and supplemented by Seller's Proposal excluding Addendum 4, shall take precedence over other documents included in this Contract. ARTICLE II TERMS and CONDITIONS 1. Definitions "Buyer" means the entity to which Seller is providing Products and/or Services under the Contract. "Contract" means either the contract agreement signed by both parties, or the purchase order signed by Buyer and accepted by Seller in writing, for the sale of Products and/or Services, together with these Terms and Conditions, Request for Bid, Seller's final quotation (Proposal), the agreed scope(s) of work, and Seller's order acknowledgement. "Contract Price" means the agreed price stated in the Contract for the sale of Products and/or Services, including adjustments (if any) in accordance with the Contract. "Derivative Works" means: (a) any work based upon one or more pre-existing works, such as a revision, enhancement, modification, translation, abridgement, condensation, expansion, extension or any other form in which such pre-existing works may be published, recast, transformed, or adapted, and that if prepared without the authorization of the owner of the copyright or other intellectual property right to such pre-existing works, would constitute an infringement of such copyright or other intellectual property right, and/or (b) any compilation that incorporates such pre-existing works. "Hazardous Materials" means any toxic or hazardous substance, hazardous material, dangerous or hazardous waste, dangerous good, radioactive material, petroleum or petroleum -derived products or by-products, or any Proposal 1629294 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. .............. Page 33 other chemical, substance, material or emission, that is regulated, listed or controlled pursuant to any national, state, provincial, or local law, statute, ordinance, directive, regulation or other legal requirement of the United States ("U.S.") or the country of the Site. "Insolvent/Bankrupt" means that a party is insolvent, makes an assignment for the benefit of its creditors, has an administrator, receiver, liquidator or trustee appointed for it or any of its assets, or files or has filed against it a proceeding under any bankruptcy, insolvency dissolution or liquidation laws. "Products" means the equipment, parts, materials, supplies, software, and other goods Seller has agreed to supply to Buyer under the Contract. "Request For Bid" means Buyer's Request for Bid for the Oil Leak Repair and Depot Services as set forth in Appendix 2. "Seller" means the entity providing Products or performing Services under the Contract. "Services" means the services Seller has agreed to perform for Buyer under the Contract. "Site" has the meaning set forth in Article 1. "Terms and Conditions" means these "Products and/or Services Terms and Conditions", including any relevant addenda pursuant to Article 18, together with any modifications or additional provisions specifically stated in Seller's final quotation or specifically agreed upon by Seller in writing. "USD" means United States Dollars. 2. Payment 2.1 Buyer shall pay Seller for the Products and/or Services by paying all invoiced amounts by direct bank transfer in the currency specified by Seller in the Contract, without deduction, withholding or set-off for any payment or claim, within thirty (30) days from the invoice date. If the Contract Price is less than two hundred fifty thousand USD ($250,000), Seller shall issue invoices upon shipment of Products and as Services are performed. If the Contract Price is two hundred fifty thousand USD ($250,000) or more, progress payments shall be invoiced starting with twenty-five percent (25%) of the Contract Price for Products and/or Services upon the earlier of Contract signature or issuance of Seller's order acknowledgement and continuing such that the Contract Price for remaining Services is invoiced as they are performed and ninety percent (90%) of the Contract Price for Products is received before the earliest scheduled Product shipment ("Progress Payments"). For each calendar month, or fraction thereof, that payment is late, Buyer shall pay a late payment charge computed at the rate of one and one-half percent (1.5%) per month on the overdue balance, or the maximum rate permitted by law if it is less. If the price is set by the Contract in a currency other than USD, references to USD in this Section 2.1 shall mean the equivalent amount in the applicable currency. If the cost of materials and or labor to Seller performing its obligations under the Contract from the date of the proposed Contract Price until the date of delivery can be shown to have increased (when comparing applicable internationally recognized indices), then the Contract Price shall be adjusted to reflect such level of inflationary increase. The increase in the Contract Price will be calculated according to the direct impact of the indices and will be invoiced separately at the time of delivery. If the cost of materials and or labor to Seller performing its obligations under the Contract from the date of the proposed Proposal 1629294 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. .............. Page 34 Contract Price until the date of delivery can be shown to have increased (when comparing applicable internationally recognized indices), then the Contract Price shall be adjusted to reflect such level of inflationary increase. The increase in the Contract Price will be calculated according to the direct impact of the indices and will be invoiced separately at the time of delivery. 2.2 As and if requested by Seller with reasonable and quantifiable risk of payment by Buyer, Buyer shall at its expense establish and keep in force payment security in the form of an irrevocable, unconditional, sight letter of credit or bank guarantee allowing for pro-rata payments as Products are shipped and Services are performed, plus payment of cancellation and termination charges, and all other amounts due from Buyer under the Contract ("Payment Security"). The Payment Security shall be (a) in a form, and issued or confirmed by a bank acceptable to Seller, (b) payable at the counters of such acceptable bank or negotiating bank, (c) opened at least sixty (60) days prior to both the earliest scheduled shipment of Products and commencement of Services, and (d) remain in effect until the latest of ninety (90) days after the last scheduled Product shipment, completion of all Services and Seller's receipt of the final payment required under the Contract. Buyer shall, at its expense, increase the amount(s), extend the validity period(s) and make other appropriate modifications to any Payment Security within ten (10) days of Seller's notification that such adjustment is necessary in connection with Buyer's obligations under the Contract. 2.3 Seller is not required to commence or continue its performance unless and until any required Payment Security is received, operative and in effect and all applicable Progress Payments have been received. For each day of delay in receiving any Progress Payments or acceptable Payment Security, Seller shall be entitled to an equitable extension of time to durations or periods of time (if any) expressly agreed to by the Parties in the written schedule for performance and/or completion of the Services or any parts thereof. If at any time Seller reasonably determines that Buyer's financial condition or payment history does notjustify continuation of Seller's performance, Seller shall be entitled to require full or partial payment in advance or otherwise restructure payments, request additional forms of Payment Security, suspend its performance or terminate the Contract. 3. Taxes and Duties Seller shall be responsible for all corporate taxes measured by net income due to performance of or payment for work under this Contract ("Seller Taxes"). Buyer shall be responsible for all taxes, duties, fees, or other charges of any nature (including, but not limited to, consumption, gross receipts, import, property, sales, stamp, turnover, use, or value-added taxes, and all items of withholding, deficiency, penalty, addition to tax, interest, or assessment related thereto, imposed by any governmental authority on Buyer or Seller or its subcontractors) in relation to the Contract or the performance of or payment for work under the Contract other than Seller Taxes ("Buyer Taxes"). The Contract Price does not include the amount of any Buyer Taxes. If Buyer deducts or withholds Buyer Taxes, Buyer shall pay additional amounts so that Seller receives the full Contract Price without reduction for Buyer Taxes. Buyer shall provide to Seller, within one month of payment, official receipts from the applicable governmental authority for deducted or withheld taxes. 4. Deliveries; Title Transfer; Risk of Loss; Storage Proposal 1629294 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. .............. Page 35 4.1 For shipments that do not involve export, including shipments from one European Union ("EU") country to another EU country, Seller shall deliver Products to Buyer FCA Seller's facility or warehouse (Incoterms 2020). For export shipments, Seller shall deliver Products to Buyer FCA Port of Export (Incoterms 2020). Buyer shall pay all delivery costs and charges or pay Seller's standard shipping charges plus up to twenty-five (25%) percent. Partial deliveries are permitted. Seller may deliver Products in advance of the delivery schedule. If Products delivered do not correspond in quantity, type or price to those itemized in the shipping invoice or documentation, Buyer shall so notify Seller within ten (10) days after receipt. 4.2 For shipments that do not involve export, title to Products shall pass to Buyer upon delivery in accordance with Section 4.1. For export shipments from a Seller facility or warehouse outside the U.S., title shall pass to Buyer upon delivery in accordance with Section 4.1. For shipments from the U.S. to another country, title shall pass to Buyer immediately after each item departs from the territorial land, seas and overlying airspace of the U.S., except where the delivery terms are EXW, FCA, FAS, and FOB (Incoterms 2020), the title shall pass to Buyer immediately when each item is handed over to Buyer's appointed carrier at Seller's premises or other named delivery place in the U.S. The 1982 United Nations Convention of the law of the Sea shall apply to determine the U.S. territorial seas. For all other shipments, title to Products shall pass to Buyer the earlier of (i) the port of export immediately upon clearance of Products for export or (ii) immediately after each item departs from the territorial land, seas and overlying airspace of the sending country. When Buyer arranges the export or intercommunity shipment, Buyer will provide Seller evidence of exportation or intercommunity shipment acceptable to the relevant tax and custom authorities. Where Seller is responsible for importing, or directly or indirectly reimburses Buyer for import costs, Buyer agrees to have import arranged through the agency of one of Seller's approved global customs brokers, whereby Seller will provide required support for instructions. If Buyer arranges for any import of Parts, Buyer may not use any third party vendor for providing customs clearance services until Seller has approved such party prior to shipment of the Parts. Notwithstanding the foregoing, Seller grants only a non-exclusive license, and does not pass title, for any software provided by Seller under this Contract, and title to any leased equipment remains with Seller. 4.3 Risk of loss shall pass to Buyer upon delivery pursuant to Section 4.1, except that for export shipments from the U.S., risk of loss shall transfer to Buyer upon title passage. 4.4 If any Products to be delivered under this Contract or if any Buyer equipment repaired at Seller's facilities cannot be shipped to or received by Buyer when ready due to any cause attributable to Buyer or its other contractors, Seller may ship the Products and equipment to a storage facility, including storage at the place of manufacture or repair, or to an agreed freight forwarder. If Seller places Products or equipment into storage, the following apply: (i) title and risk of loss immediately pass to Buyer, if they have not already passed, and delivery shall be deemed to have occurred; (ii) any amounts otherwise payable to Seller upon delivery or shipment shall be due; (iii) all expenses and charges incurred by Seller related to the storage shall be payable by Buyer upon submission of Seller's invoices; and (iv) when conditions permit and upon payment of all amounts due, Seller shall make Products and repaired equipment available to Buyer for delivery. Proposal 1629294 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. .............. Page 36 4.5 If repair Services are to be performed on Buyer's equipment at Seller's facility, Buyer shall be responsible for, and shall retain risk of loss of, such equipment at all times, except that Seller shall be responsible for damage to the equipment while at Seller's facility to the extent such damage is caused by Seller's negligence. 4.6 Except as otherwise expressly agreed to by the Parties in writing, acceptance of Products shall be deemed to occur upon delivery; acceptance of Services shall be deemed to occur upon performance of the Services. Acceptance shall not be delayed by delays in provision of documentation or other non -conformances which do not prevent operation of Buyer's equipment, nor by requirements which the Contract contemplates may be carried out after acceptance. S. Warranty 5.1 Seller warrants that Products shall be delivered free from defects in material, workmanship and title and that Services shall be performed in a competent, diligent manner in accordance with any mutually agreed specifications incorporated into the Contract. 5.2 The warranty for Products shall expire eighteen (18) months from first use or eighteen (18) months from delivery, whichever occurs first, except that software is warranted for ninety (90) days from delivery; and the warranty for Services shall eighteen (18) months after performance of the Service, except that software -related Services are warranted for ninety (90) days from the performance of the Services (as applicable, the "Warranty Period"). 5.3 If Products and/or Services do not meet the above warranties, Buyer shall promptly notify Seller in writing prior to expiration of the applicable Warranty Period. Seller shall (i) at its option, repair or replace defective Products and (ii) re -perform defective Services. If despite Seller's reasonable efforts, a non -conforming Product cannot be repaired or replaced, or non -conforming Services cannot be re -performed, Seller shall refund or credit monies paid by Buyer for such non -conforming Products and/or Services. Warranty repair, replacement or re - performance by Seller shall not extend or renew the applicable Warranty Period. Seller's warranty obligations exclude the repair or replacement of any damaged parts or Products other than the initially failing part which caused the damage. Buyer shall obtain Seller's agreement on the specifications of any tests it plans to conduct to determine whether a non-conformance exists. 5.4 Buyer shall bear the costs of access for Seller's remedial warranty efforts (including removal and replacement of systems, structures or other parts of Buyer's facility), de -installation, decontamination, re -installation and transportation of defective Products to Seller and back to Buyer. 5.5 The warranties and remedies are conditioned upon (a) proper storage, installation, use, operation, and maintenance of Products, (b) Buyer keeping accurate and complete records of operation and maintenance during the warranty period and providing Seller access to those records, and (c) modification or repair of Products and/or Services only as authorized by Seller in writing. Failure to meet any such conditions renders the warranty null and void. Seller is not responsible for normal wear and tear. 5.6 This Article 5 provides the exclusive remedies for all claims based upon the failure of or defect in Products or Services, whether the claim is based in contract, negligence, statute, or any tortious/extra-contractual liability Proposal 1629294 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. .............. Page 37 theory, strict liability or otherwise. The foregoing warranties in this Article 5 are exclusive and are in lieu of all other warranties, conditions and guarantees whether written, oral, implied or statutory. NO IMPLIED OR STATUTORY WARRANTY, OR WARRANTY OR CONDITION OF MERCHANTABILITY, QUALITY OR FITNESS FOR A PARTICULAR PURPOSE APPLIES. FOR ALL CANADIAN CONTRACTS, THE SALE OF GOODS ACT, AS ENACTED BY EACH PROVINCE OF CANADA, SHALL NOT APPLY. 6. Confidentiality 6.1 Seller and Buyer (as to information disclosed, the "Disclosing Party") may each provide the other party (as to information received, the "Receiving Party") with Confidential Information in connection with this Contract. "Confidential Information" means information that is designated in writing as "confidential" or "proprietary" by Disclosing Party at the time of written disclosure. In addition, prices for Products and/or Services shall be considered Seller's Confidential Information. 6.2 Receiving Party agrees: (i) to use the Confidential Information only in connection with the Contract and use of Products and/or Services, (ii) to take reasonable measures to prevent disclosure of the Confidential Information to third parties, and NO not to disclose the Confidential Information to a competitor of Disclosing Party. Notwithstanding these restrictions, (a) Seller may disclose Confidential Information to its affiliates and subcontractors in connection with performance of the Contract, (b) a Receiving Party may disclose Confidential Information to its auditors, (c) Buyer may disclose Confidential Information to lenders as necessary for Buyer to secure or retain financing needed to perform its obligations under the Contract, and (d) a Receiving Party may disclose Confidential Information to any other third party with the prior written permission of Disclosing Party, and in each case, only so long as the Receiving Party obtains a non -disclosure commitment from any such subcontractors, auditors, lenders or other permitted third party that prohibits disclosure of the Confidential Information and provided further that the Receiving Party remains responsible for any unauthorized use or disclosure of the Confidential Information. Receiving Party shall upon request return to Disclosing Party or destroy all copies of Confidential Information except to the extent that a specific provision of the Contract entitles Receiving Party to retain an item of Confidential Information. Seller may also retain one archive copy of Buyer's Confidential Information. 6.3 The obligations under this Article 6 shall not apply to any portion of the Confidential Information that: (i) is or becomes generally available to the public other than as a result of disclosure by Receiving Party, its representatives or its affiliates; (ii) is or becomes available to Receiving Party on a non -confidential basis from a source other than Disclosing Party when the source is not, to the best of Receiving Party's knowledge, subject to a confidentiality obligation to Disclosing Party; (iii) is independently developed by Receiving Party, its representatives or affiliates, without reference to the Confidential Information; (iv) is required to be disclosed by law or valid legal process provided that the Receiving Party intending to make disclosure in response to such requirements or process shall promptly notify the Disclosing Party in advance of such disclosure and reasonably cooperate in attempts to maintain the confidentiality of the Confidential Information. 6.4 Each Disclosing Party warrants that it has the right to disclose the information that it discloses. Neither Buyer nor Seller shall make any public announcement about the Contract without prior written approval of the other party. As to any individual item of Confidential Information, the restrictions under this Article 6 shall expire Proposal 1629294 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. .............. Page 38 five (5) years after the date of disclosure. Trade secrets that are contained in or comprise Confidential Information are to be protected for the life of the trade secret. Article 6 does not supersede any separate confidentiality or nondisclosure agreement signed by the parties. 7. Intellectual Property 7.1 Seller shall defend and indemnify Buyer against any claim by a non-affiliated third party (a "Claim") alleging that Products and/or Services furnished under this Contract infringe a patent in effect in the U.S., an EU member state or the country of the Site (provided there is a corresponding patent issued by the U.S. or an EU member state), or any copyright or trademark registered in the country of the Site, provided that Buyer (a) promptly notifies Seller in writing of the Claim, (b) makes no admission of liability and does not take any position adverse to Seller, (c) gives Seller sole authority to control defense and settlement of the Claim, and (d) provides Seller with full disclosure and reasonable assistance as required to defend the Claim. 7.2 Section 7.1 shall not apply and Seller shall have no obligation or liability with respect to any Claim based upon (a) Products and/or Services that have been modified, or revised, (b) the combination of any Products and/or Services with other products and/or services when such combination is a basis of the alleged infringement, (c) failure of Buyer to implement any update provided by Seller that would have prevented the Claim, (d) unauthorized use of Products and/or Services, or (e) Products and/or Services made or performed to Buyer's specifications. 7.3 Should any Product and/or Service, or any portion thereof, become the subject of a Claim, Seller may at its option (a) procure for Buyer the right to continue using the Product and/or Service, or applicable portion thereof, (b) modify or replace it in whole or in part to make it non -infringing, or (c) failing (a) or (b), take back infringing Products and/or discontinue infringing Services and refund the price received by Seller attributable to the infringing Products and/or Services. 7.4 Article 7 states Seller's exclusive liability for intellectual property infringement by Products and/or Services. 7.5 Each party shall retain ownership of all Confidential Information and intellectual property it had prior to the Contract. All rights in and to software not expressly granted to Buyer are reserved by Seller. All new intellectual property conceived or created by Seller in the performance of this Contract, whether alone or with any contribution from Buyer, shall be owned exclusively by Seller. Buyer agrees to deliver assignment documentation as necessary to achieve that result. 7.6 Buyer will not itself, and will not allow any party (including Buyer Affiliates) to: (i) reverse engineer Products or Services (including any Seller monitoring or data analysis by Seller), (ii) prepare Derivative Works from, alter, modify, disassemble, reverse engineer, reverse assemble, de -compile, or otherwise attempt to reconstruct, discover or derive the object or source code of any software licensed to Buyer by Seller under this Contract (including any third party software); (iii) permit or otherwise grant any third -party access to Products, Services or software for such purpose, even if such third party is performing any corrections, bug fixes and updates. 7.7 Products furnished by Seller under this Contract shall not be installed, used, or made available for use in any equipment other than the equipment specified in the Contract at Buyer's Site. Buyer warrants that such Proposal 1629294 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. .............. Page 39 equipment, and the Site, is under its ownership and control, and agrees to inform Seller forthwith should this cease to be the case at any time before expiry of the Warranty Period. 8. Indemnity Each of Buyer and Seller (as an "Indemnifying Party") shall indemnify the other party (as an "Indemnified Party") from and against claims brought by a third party, on account of personal injury or damage to the third party's tangible property, to the extent caused by the negligence of the Indemnifying Party in connection with this Contract. In the event the injury or damage is caused byjoint or concurrent negligence of Buyer and Seller, the loss or expense shall be borne by each party in proportion to its degree of negligence. For purposes of Seller's indemnity obligation, no part of the Products or Site is considered third party property. 9. Insurance During the term of the Contract, Seller shall maintain for its protection the following insurance coverage: (i) Worker's Compensation, Employer's Liability and other statutory insurance required by law with respect to work related injuries or disease of employees of Seller in such form(s) and amount(s) as required by applicable laws; (ii) Automobile Liability insurance with a combined single limit of $2,500,000.00; and (iii) Commercial General Liability or Public Liability insurance for bodily injury and property damage with a combined single limit of $2,500,000.00. If required in the Contract, Seller shall provide a certificate of insurance reflecting such coverage. 10. Schedule and Excusable Events 10.1 Any durations or periods of time quoted on the schedule or otherwise agreed for performance, delivery and/or completion of the Services or delivery of Products shall be regarded as estimated only. In addition, delivery times are dependent upon prompt receipt by Seller of all information necessary to proceed with the work without interruption. In the event Seller agrees in writing to guaranteed performance, delivery and/or completion times and specific sums as liquidated damages for late performance, delivery or completion, any such liability for damages shall only commence when the period of delay (i) exceeds the guaranteed date or time by fourteen (14) calendar days and liquidated damages may be applied and be levied only from that fourteenth (14th) day onwards and (ii) directly inhibits Buyer's scheduled electric power and other process generation. Payment of liquidated damages shall be in full and final settlement of any and all liability of the Seller for delays under the Contract and shall be Buyer's sole and exclusive remedy for failing to achieve the performance, delivery and/or completion guarantee. The Seller's maximum aggregate liability for liquidated damages for delay shall in no circumstances exceed five percent (5%) of the total amount of the Contract Price paid to the Seller. 10.2 Seller shall not be liable and shall not be considered in breach of any obligations to supply manpower, deliver Products or to perform, deliver or complete the Services or any parts thereof within specified durations or periods or by a specified time if it is delayed or prevented, directly or indirectly, by any cause beyond its reasonable control, or by armed conflict, acts or threats of terrorism, epidemics, quarantines, strikes or other labor disturbances, or acts or omissions of any governmental authority (including, but not limited to, changes in applicable laws or regulations) or of the Buyer or Buyer's contractors or suppliers, or for any period of suspension under Section 11.3 (whether existing, foreseen or unforeseen). If any such cause or excusable event occurs, the Proposal 1629294 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. .............. Page 40 schedule for Seller's performance shall be adjusted accordingly and dates or times stated in the schedule for performance and/or completion of the Services or delivery of Products shall be extended by the amount of time lost by reason of the event plus such additional time as may be needed to overcome the effect of the event. Seller shall also be entitled to an equitable adjustment of the price to compensate for all increases in Seller's cost of performance of the Services or delivery of Products due to such cause or excusable event, subject to Seller's obligations to work in good faith with Buyer to mitigate the impact of such event(s). If acts or omissions of the Buyer or its contractors or suppliers cause the delay, Seller shall also be entitled to an equitable price adjustment. 11. Termination and Suspension 11.1 Buyer may terminate the Contract (or the portion affected) for cause if Seller (i) becomes Insolvent/Bankrupt, or (ii) commits a material breach of the Contract which does not otherwise have a specified contractual remedy, provided that: (a) Buyer shall first provide Seller with detailed written notice of the breach and of Buyer's intention to terminate the Contract, and (b) Seller shall have failed, within 30 days after receipt of the notice, to commence and diligently pursue cure of the breach. 11.2 If Buyer terminates the Contract pursuant to Section 11.1, (i) Seller shall reimburse Buyer the difference between that portion of the Contract Price allocable to the terminated scope and the actual amounts reasonably incurred by Buyer to complete that scope, and (ii) Buyer shall pay to Seller (a) the portion of the Contract Price allocable to Products and/or Services completed, (b) lease fees incurred, and (c) amounts for Services performed before the effective date of termination. The amount due for Services shall be determined in accordance with the milestone schedule (for completed milestones) and rates set forth in the Contract (for work toward milestones not yet achieved and where there is no milestone schedule), as applicable or, where there are no milestones and/or rates in the Contract, at Seller's then -current standard time and material rates. 11.3 Seller may suspend or terminate the Contract (or any affected portion thereof) immediately for cause if Buyer (i) becomes Insolvent/Bankrupt, or (ii) materially breaches the Contract, including, but not limited to, failure or delay in Buyer providing Payment Security, making any payment when due, or fulfilling any payment conditions. 11.4 If the Contract (or any portion thereof) is terminated for any reason other than Seller's default under Section 11.1, Buyer shall pay Seller for all Products completed, lease fees incurred and Services performed before the effective date of termination, plus expenses reasonably incurred by Seller in connection with the termination. The amount due for Services shall be determined in accordance with the milestone schedule (for completed milestones) and rates set forth in the Contract (for work toward milestones not yet achieved and where there is no milestone schedule), as applicable or, where there are no milestones and/or rates in the Contract, at Seller's then -current standard time and material rates. All work in progress shall be paid for at Seller's standard time and material rates. In addition, Buyer shall pay Seller a cancellation charge equal to eighty (80%) of the Contract Price applicable to uncompleted made -to -order Products and/or Services and fifteen (15%) of the Contract Price applicable to all other uncompleted Products and/or Services. 11.5 Either Buyer or Seller may terminate the Contract (or the portion affected) upon twenty (20) days advance notice if there is an excusable event (as described in Article 10) lasting longer than one hundred and twenty (120) days or if it is not possible to avoid or mitigate such excusable event without unreasonable burden through Proposal 1629294 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. .............. Page 41 an adjustment in schedule, price and other provisions of the Contract within such one hundred and twenty (120) days. In such case, Buyer shall pay to Seller amounts payable under Section 11.4, excluding the cancellation charge for uncompleted Products and/or Services. 11.6 Buyer shall pay all reasonable expenses incurred by Seller in connection with a suspension, including, but not limited to, expenses for repossession, fee collection, demo bilization/remobiIization, and costs of storage during suspension. The schedule for Seller's obligations shall be extended for a period of time reasonably necessary to overcome the effects of any suspension. 12. Compliance with Laws, Codes and Standards 12.1 Seller shall comply with laws applicable to the manufacture of Products and its performance of Services. Buyer shall comply with laws applicable to the application, operation, use and disposal of the Products and Services. 12.2 Seller's obligations are conditioned upon Buyer's compliance with all U.S., EU and other applicable trade control laws and regulations. Buyer shall not trans -ship, re-export, divert or direct or otherwise make or allow any disposition of Products other than in and to the ultimate country of destination declared by Buyer and specified as the country of ultimate destination on Seller's invoice. Buyer hereby certifies that the equipment, materials, services, technical data, software or other information or assistance furnished by Seller under this Contract will not be used in the design, development, production, stockpiling or use of chemical, biological, or nuclear weapons. Changes in applicable trade control laws and regulations shall be subject to Section 10.2. 12.3 Notwithstanding any other provision, Buyer shall timely obtain, effectuate and maintain in force any required permit, license, exemption, filing, registration and other authorization, including, but not limited to, building and environmental permits, import licenses, environmental impact assessments, and foreign exchange authorizations, required for the lawful performance of Services at the Site or fulfillment of Buyer's obligations, except that Seller shall obtain any license or registration necessary for Seller to generally conduct business and visas or work permits, if any, necessary for Seller's personnel. Buyer shall provide reasonable assistance to Seller in obtaining such visas and work permits. 13. Environmental, Health and Safety Matters 13.1 Buyer shall maintain safe working conditions at the Site, including, without limitation, implementing appropriate procedures regarding Hazardous Materials, confined space entry, and energization and de- energization of power systems (electrical, mechanical and hydraulic) using safe and effective lock-out/tag-out ("LOTO") procedures including physical LOTO or a mutually agreed upon alternative method. 13.2 Buyer shall timely advise Seller in writing of all applicable Site -specific health, safety, security and environmental requirements and procedures. Without limiting Buyer's responsibilities under Article 13, Seller has the right but not the obligation to, from time to time, review and inspect applicable health, safety, security and environmental documentation, procedures and conditions at the Site. Proposal 1629294 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. .............. Page 42 13.3 If, in Seller's reasonable opinion, the health, safety, or security of personnel or the Site is, or is apt to be, imperiled by security risks, terrorist acts or threats, the presence of or threat of exposure to Hazardous Materials, or unsafe working conditions, Seller may, in addition to other rights or remedies available to it, evacuate some or all of its personnel from Site, suspend performance of all or any part of the Contract, and/or remotely perform or supervise work. Any such occurrence shall be considered an excusable event. Buyer shall reasonably assist in any such evacuation. 13.4 Operation of Buyer's equipment is the responsibility of Buyer. Buyer shall not require or permit Seller's personnel to operate Buyer's equipment at Site. 13.5 Buyer will make its Site medical facilities and resources available to Seller personnel who need medical attention. 13.6 Seller has no responsibility or liability for the pre-existing condition of Buyer's equipment or the Site. Prior to Seller starting any work at Site, Buyer will provide documentation that identifies the presence and condition of any Hazardous Materials existing in or about Buyer's equipment or the Site that Seller may encounter while performing under this Contract. Buyer shall disclose to Seller industrial hygiene and environmental monitoring data regarding conditions that may affect Seller's work or personnel at the Site. Buyer shall keep Seller informed of changes in any such conditions. 13.7 Seller shall notify Buyer if Seller becomes aware of. (i) conditions at the Site differing materially from those disclosed by Buyer, or (ii) previously unknown physical conditions at Site differing materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the Contract. If any such conditions cause an increase in Seller's cost of, or the time required for, performance of any part of the work under the Contract, an equitable adjustment in price and schedule shall be made. 13.8 If Seller encounters Hazardous Materials in Buyer's equipment or at the Site that require special handling or disposal, Seller is not obligated to continue work affected by the hazardous conditions. In such an event, Buyer shall eliminate the hazardous conditions in accordance with applicable laws and regulations so that Seller's work under the Contract may safely proceed, and Seller shall be entitled to an equitable adjustment of the price and schedule to compensate for any increase in Seller's cost of, or time required for, performance of any part of the work. Buyer shall properly store, transport and dispose of all Hazardous Materials introduced, produced or generated in the course of Seller's work at the Site. 13.9 Buyer shall indemnify Seller for any and all claims, damages, losses, and expenses arising out of or relating to any Hazardous Materials which are or were (i) present in or about Buyer's equipment or the Site prior to the commencement of Seller's work, (ii) improperly handled or disposed of by Buyer or Buyer's employees, agents, contractors or subcontractors, or (iii) brought, generated, produced or released on Site by parties other than Seller. 14. Changes 14.1 Each party may propose changes in the schedule or scope of Products and/or Services. Parties shall mutually agree on potential changes into the schedule or scope of a planned outage start date at least one Proposal 1629294 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. .............. Page 43 hundred eighty (180) days before such start date to enable Seller's ability to fulfill the request. Seller is not obligated to proceed with any change until both parties agree upon such change in writing. The written change documentation will describe the changes in scope and schedule, and the resulting changes in price and other provisions, as agreed. 14.2 The scope, Contract Price, schedule, and other provisions will be equitably adjusted to reflect additional costs or obligations incurred by Seller resulting from a change, after Seller's proposal date, in Buyer's Site -specific requirements or procedures, or in industry specifications, codes, standards, applicable laws or regulations. Unless otherwise agreed by the parties, pricing for additional work arising from such changes shall be at Seller's time and material rates. 14.3 It shall be acceptable and not considered a change if Seller delivers a Product that bears a different, superseding or new part or version number compared to the part or version number listed in the Contract. 15. Limitations of Liability 15.1 To the maximum extent permitted by applicable law, the total liability of Seller for all claims arising from or related to the formation, performance or breach of this Contract, or provision of any Products and/or Services, shall not exceed the (i) Contract Price, or (ii) if Buyer places multiple order(s) under the Contract, the price of each particular order for all claims arising from or related to that order and ten thousand USD (US $10,000) for all claims not part of any particular order. 15.2 Seller shall not be liable for loss of profit or revenues, loss of use of equipment or systems, interruption of business, cost of replacement power, cost of capital, downtime costs, increased operating costs, any special, consequential, incidental, indirect, or punitive damages, or claims of Buyer's customers for any of the foregoing types of damages, or for any cost, loss or liability Buyer may suffer under any agreement by which it sells or transmits electricity to its customer(s) or third parties. 15.3 All Seller liability shall end upon expiration of the applicable warranty period, provided that Buyer may continue to enforce a claim for which it has given notice prior to that date by commencing an action or arbitration, as applicable under this Contract, before expiration of any statute of limitations or other legal time limitation but in no event later than one year after expiration of such warranty period. 15.4 Seller shall not be liable for advice or assistance that is not required for the work scope under this Contract. 15.5 Buyer will not supply Products and/or Services to any third party, or use Products and/or Services other than at the Site owned by Buyer. In case of non-compliance, Buyer shall (i) indemnify and defend Seller from and against any and all claims by, and liability to, any third party to whom Products and/or Services are supplied, and (ii) require that the third party agree, for the benefit of and enforceable by Seller, to be bound by the provisions of Article 7 and all the limitations included in this Article 15. 15.6 For purposes of this Article 15, the term "Seller" means Seller, its affiliates, subcontractors and suppliers of any tier, and their respective employees. The limitations in this Article 15 shall apply regardless of whether a Proposal 1629294 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. .............. Page 44 claim is based in contract, negligence, statute, indemnity, tortious/extra-contractual liability theory, strict liability or otherwise. 16. Governing Law and Dispute Resolution 16.1 This Contract shall be governed by and construed in accordance with the laws of (i) the State of Minnesota if Buyer's place of business is in the U.S. or (ii) England and Wales, if the Buyer's place of business is outside the U.S., in either case without giving effect to any choice of law rules that would cause the application of laws of any other jurisdiction (the "Governing Law"). 16.2 All disputes and, to the maximum extent permitted by applicable law, all non -contractual obligations arising in any way whatsoever out of or in connection with this Contract arising in connection with this Contract, including any question regarding its existence or validity, shall be resolved in accordance with this Article 16. If a dispute is not resolved by negotiations, either party may, by giving written notice, refer the dispute to a meeting of appropriate higher management, to be held within twenty (20) business days after the giving of notice. If the dispute is not resolved within thirty (30) business days after the giving of notice, or such later date as may be mutually agreed, either party may commence arbitration or court proceedings, depending upon the location of the Buyer, in accordance with one of the following: a) if the Buyer's pertinent place of business is in the U.S., legal action shall be commenced in federal court with jurisdiction applicable to, or state court located in, either New York, New York (and Buyer hereby consents to be subject to such New York federal and state jurisdiction) or the location of Buyer's principal place of business; or b) if the Buyer's pertinent place of business is outside the U.S., the dispute shall be submitted to and finally resolved under the Rules of Arbitration of the International Chamber of Commerce by one or more arbitrators appointed in accordance with the said Rules (the "Rules"). The seat of arbitration shall be in London, England. The arbitration shall be conducted in English. The decision of the arbitrators shall be final and binding upon the parties. 16.3 Notwithstanding the foregoing, each party shall have the right at any time, at its option and where legally available, to commence an action or proceeding in a court of competent jurisdiction, subject to the terms of this Contract, to seek a restraining order, injunction, or similar order (but not monetary damages), or to seek interim or conservatory measures. 17. Inspection and Factory Tests Seller will apply its normal quality control procedures in manufacturing Products. Seller shall attempt to accommodate requests by Buyer to witness Seller's factory tests of Products, subject to appropriate access restrictions, if such witnessing can be arranged without delaying the work. 18. Software, Leased Equipment, Remote Diagnostic Services, PCB Services If Seller provides any software to Buyer, the Software License Addendum shall apply. If Seller leases any of Seller's equipment or provides related Services to Buyer, including placing Seller's equipment at Buyer's site to provide remote Services, the Lease Addendum shall apply. If Seller provides remote diagnostic services to Buyer, the Remote Diagnostic Services Addendum shall apply. If Seller provides PCB Services to Buyer, the PCB Services Proposal 1629294 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. .............. Page 45 Addendum shall apply. If there is any conflict between these Products and/or Services Terms and Conditions" and the terms of any addendum incorporated pursuant to this Article 18, the terms of the addendum shall take precedence with respect to the applicable scope. 19. General Clauses 19.1 Products and Services sold by Seller are not intended, in whole or in part, for application (and will not be used) in connection with or nearby any nuclear facility or activity, and Buyer warrants that it shall not use or permit others to use Products and/or Services for any such purposes, without the advance written consent of Seller. IF, IN BREACH OF THE FOREGOING, ANY SUCH USE OCCURS, SELLER, ITS AFFILIATES, SUPPLIERS, AND SUBCONTRACTORS, SHALL HAVE NO LIABILITY FOR ANY NUCLEAR OR OTHER DAMAGE, INJURY OR CONTAMINATION, AND BUYER SHALL INDEMNIFY SELLER, ITS AFFILIATES, SUPPLIERS, AND SUBCONTRACTORS OF EVERY TYPE AND TIER AGAINST ANY SUCH LIABILITY, WHETHER ARISING AS A RESULT OF BREACH OF CONTRACT, WARRANTY, INDEMNITY, TORT/EXTRACONTRACTUAL LIABILITY (INCLUDING NEGLIGENCE), STRICT LIABILITY OR OTHERWISE. 19.2 Seller may assign or novate its rights and obligations under the Contract, in whole or in part, to any of its affiliates or may assign any of its accounts receivable under this Contract to any party without Buyer's consent. Buyer agrees to execute any documents that may be necessary to complete Seller's assignment or novation. Seller may subcontract portions of the work, so long as Seller remains responsible for it. The delegation or assignment by Buyer of any or all of its rights or obligations under the Contract without Seller's prior written consent (which consent shall not be unreasonably withheld) shall be void. 19.3 Buyer shall notify Seller immediately upon any change in ownership of more than fifty percent (50%) of Buyer's voting rights or of any controlling interest in Buyer. If Buyer fails to do so or Seller objects to the change, Seller may (a) terminate the Contract, (b) require Buyer to provide adequate assurance of performance (including but not limited to payment), and/or (c) put in place special controls regarding Seller's Confidential Information. 19.4 If any Contract provision is found to be void or unenforceable, the remainder of the Contract shall not be affected. The parties will endeavor to replace any such void or unenforceable provision with a new provision that achieves substantially the same practical and economic effect and is valid and enforceable. 19.5 The following Articles shall survive termination or cancellation of the Contract: 2, 3, 4, 5, 6, 7, 8, 10, 11, 12, 13, 15, 16, 18, 19 and 20. 19.6 The Contract represents the entire agreement between the parties. No oral or written representation or warranty not contained in this Contract shall be binding on either party. Buyer's and Seller's rights, remedies and obligations arising from or related to Products and/or Services sold under this Contract are limited to the rights, remedies and obligations stated in this Contract. No modification, amendment, rescission or waiver shall be binding on either party unless agreed in writing. 19.7 Except as provided in Article 15 (Limitations of Liability), this Contract is only for the benefit of the parties and not for any third parties. Proposal 1629294 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. .............. Page 46 19.8 This Contract may be signed in multiple counterparts that together shall constitute one agreement. 20. U.S. Government Contracts 20.1 This Article 20 applies only if the Contract is for the direct or indirect sale to any agency of the U.S. government and/or is funded in whole or in part by any agency of the U.S. government. 20.2 Buyer agrees that all Products and/or Services provided by Seller meet the definition of "commercial -off -the - shelf' ("COTS") or "commercial item" as those terms are defined in Federal Acquisition Regulation ("FAR") 2.101. To the extent the Buy American Act, Trade Agreements Act, or other domestic preference requirements are applicable to this Contract, the country of origin of Products is unknown unless otherwise specifically stated by Seller in this Contract. Buyer agrees any Services offered by Seller are exempt from the Service Contract Act of 1965 (FAR 52.222-41). Buyer represents and agrees that this Contract is not funded in whole or in part by American Recovery Reinvestment Act funds unless otherwise specifically stated in the Contract. The version of any applicable FAR clause listed in this Article 20 shall be the one in effect on the effective date of this Contract. 20.3 If Buyer is an agency of the U.S. Government, then as permitted by FAR 12.302, Buyer agrees that all paragraphs of FAR 52.212-4 (except those listed in 12.302(b)) are replaced with these Terms and Conditions. Buyer further agrees the subparagraphs of FAR 52.212-5 apply only to the extent applicable for sale of COTS and/or commercial items and as appropriate for the Contract Price. 20.4 If Buyer is procuring the Products and/or Services as a contractor, or subcontractor at any tier, on behalf of any agency of the U.S. Government, then Buyer agrees that FAR 52.212-5(e) or 52.244-6 (whichever is applicable) applies only to the extent applicable for sale of COTS and/or commercial items and as appropriate for the Contract Price. Proposal 1629294 GE Proprietary information ........ ..............._._ ................. ................. ..............._._ ................. .............. Page 47 GE Power Services ARTICLE III ACCEPTANCE OF AGREEMENT This Agreement may be executed by facsimile or electronically, and in multiple counterparts with the same effect as if all signing parties had signed the same document. All counterparts will be construed together and constitute one and the same contract. Facsimile or electronic signatures will be treated as originals. IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their duly authorized representatives. "GE Packaged Power, LLC" By: 2L-Li Printed Name: Skigh E. Title: Commercial 1-2 Printed Name: Title: "Hutchinson Utilities Commission" Printed Name: Title: Printed Name: Title: Proposal 1629294 GE Proprietary information ........ ................. ..............._._ ................. ................. ..............._._ ............. Page 48