01-29-2025 HUCMMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, January 29, 2025
Call to order — 3:00 p.m.
President Don Martinez called the meeting to order. Members present: President Don
Martinez; Vice President Matt Cheney; Secretary Kathy Silvernale; Commissioner Tom
Lambert; GM Jeremy Carter; Attorney Marc Sebora
Absent: Commissioner Troy Pullis;
Tom Lambert was sworn in as commissioner by Attorney Marc Sebora
1. Conflict of Interest
2. Commission Reorganization
a. A motion made by Commissioner Martinez, second by Commissioner
Silvernale to elect Matt Cheney to the position of President. Motion carried
unanimously.
b. A motion made by Commissioner Cheney, second by Commissioner
Silvernale to elect Troy Pullis to the position of Vice President. Motion carried
unanimously.
c. A motion made by Commissioner Silvernale, second by Commissioner
Cheney to elect Don Martinez to the position of Secretary. Motion carried
unanimously.
d. A motion made by Commissioner Cheney, second by Commissioner Lambert
to re -appoint Marc Sebora as legal counsel. Motion carried unanimously.
e. A motion made by Commissioner Martinez, second by Commissioner
Silvernale re -appoint Angie Radke as recording secretary. Motion carried
unanimously.
f. A motion made by Commissioner Silvernale, second by Commissioner
Lambert 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 Cheney, second by Commissioner Silvernale to Approve
the Consent Agenda. Motion carried unanimously.
4. Approve Financial Statements
GM Carter presented the Financial Statements. December financials are always
difficult to compare to pervious years due to other year-end entries. The 2024 entry
for pension has not been completed yet as the report is not available. Overall coming
in better than budget.
GM Carter reviewed sales for resales, purchase power, reimbursements on the
Heartland Corn project along with the prepaid deal that was entered into.
Cash Balance was also discussed.
Motion by Commissioner Cheney, second by Commissioner Lambert to Approve the
Financial Statements. Motion carried unanimously.
5. Open Forum
a. Brad Snyder from Hydaker-Wheatlake was present.
6. Communication
a. City Administrator — Matthew Jaunich —
i. Summer projects — Dale Street and Hassen Street
ii. Lots of interest in development
iii. Miller Manufacturing bought Rite way building
b. Divisions
i. Dan Lang, Engineering Services Manager —
1. Reviewed the End of Year Energy Summaries. Summary chart show
how 2024 went as far as load usage, costs, and where it came from
compared to previous years.
Energy graph shows 20 years of data and what the cost of energy is
relative to MISO real time and Natural Gas prices. The key line would
be the green line which is HUC's wholesale cost, buying from MISO,
MRES and what is generated.
System Load Average MWh chart compares current 2024 year to the
last 2 years.
Load Duration Curve shows how MRES contract is working. Still going
well.
Annual Generation MWh chart shows 20 years of information. 2024
shows the amount of generation that is being generated by the plants.
Annual System Load chart has been trending down.
ii. Dave Hunstad, Electric Transmission/Distribution Manager — Nothing to
report
iii. Mike Gabrielson, Production Manager — Nothing to report
iv. Jared Martig, Financial Manager- Absent
c. Human Resources — Angie Radke -
i. Working on OSHA Logs
d. Legal — Marc Sebora —
i. Nothing to report
e. General Manager — Jeremy Carter
i. Legislative update - watching public financing
7. Policies
a. Review Policies
i. Section 1
ii. Section 1
of Exempt Handbook
of Non -Exempt Handbook
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No changes recommended at this time.
8. Unfinished Business
9. New Business
Moved up Agenda Item 8h. Award Hutchinson Substation Construction Contract to
Hydaker-Wheatlake Co.
Mr. Lang presented Awarding Hutchinson Substation Construction Contract to
Hydaker—Wheatlake Co. During the January 15th bid opening, 3 bids were received.
The lowest bid did not fulfill the bid specifications and was later retracted by the
bidder. After reviewing the bid proposals, Staff and DGR Engineering are
recommending awarding the bid to Hydaker-Wheatlake Co. for a total contract price
of $6,931,556.12.
Motion by Commissioner Cheney, second by Commissioner Silvernale to Award
Hutchinson Substation Construction Contract to Hydaker-Wheatlake Co. Motion
carried unanimously.
a. Review Annual Solar Production
Mr. Hunstad presented the Annual Solar Production for 2024. 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. For 2024, the array generated 950,287 KWH with
a cost savings of $22,717.10. The array was anticipated to operate at a 14%
capacity factor, however for 2024 the array is operating better than expected with
a capacity factor of 17.3%.
b. 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.
Motion by Commissioner Silvernale, second by Commissioner Cheney to
Approve Cogeneration and Small Power Production Tariff. Motion carried
unanimously.
c. Review 2024 Distributed Energy Resources Generation Report
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Mr. Hunstad reviewed the 2024 Distributed Energy Resources Generation Report.
The law requires municipal utilities that have adopted co -generation policies to
review annually all net energy billed qualifying facilities. HUC has 20 active Solar
DER Co -generation facilities which consist of 13 Commercial, 6 Residential and 1
Utility owned.
d. Approve Control System Upgrade Wartsila Unit #5 sWOIS Contract
Mr. Gabrielson presented Approval of Control System Upgrade Wartsila Unit#5
sWOIS Contract. Staff and IEM are recommending to enter into a purchase
agreement with Wartsila for a control system sWOIS server upgrade. Currently
running on a Windows XP operating system that is no longer supported.
A motion by Commissioner Silvernale, second by Commissioner Cheney to
Approve Control System Upgrade Wartsila Unit #5 sWOIS Contract. Motion
carried unanimously.
e. Approve DGR Engineering Task Order #9 — Plant #1 Substation 115kV
Conversion.
Mr. Lang presented Approval of DGR Engineering Task Order #9 — Plant #1
Substation 115kV Conversion. Preliminary design of the Plant #1 Substation
conversion to 115kV to coincide with the Willmar 69kV line rebuild to 115kV.
A motion by Commissioner Cheney, second by Commissioner Lambert to
Approve DGR Engineering Task Order #9 Plant #1 Substation 115kV Conversion.
Motion carried unanimously.
F. Approve DGR Engineering Task Order #10 — McLeod Substation Relay
Upgrade
Mr. Lang presented Approval of DGR Engineering Task Order #10 McLeod
Substation Relay Upgrade. Relays were installed in 2001 and are due for
replacement. Project is considered a transmission maintenance expense and the
costs can be recaptured via the annual transmission revenue requirement (ATRR)
(MISO Attachment O). Preliminary design of the McLeod Sub relay project.
A motion by Commissioner Silvernale, second by Commissioner Cheney Approve
DGR Engineering Task Order #10 McLeod Substation Relay Upgrade. Motion
carried unanimously.
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9g Approve GRE SOW — Hutchinson Substation Metering
Mr. Lang presented Approval of GRE SOW — Hutchinson Substation Metering.
The expansion of the Hutchinson Substation will require additional metering and
reconfiguration of existing metering. Staff has contacted Great River Energy
(GRE) to preform the task, and the attached statement of work details the roles
and responsibilities of each party.
A motion by Commissioner Cheney, second by Commissioner Silvernale to
Approve GRE SOW — Hutchinson Substation Metering. Motion carried
unanimously.
9i. Approve Req#010119 Air Stack Emission Testing Plant 1 and Plant 2.
Mr. Gabrielson presented Approval of Req#010119 Air Stack Emission Testing for
Plant 1 and Plant 2. Every 2-5 years HUC needs to perform testing on the
exhaust stacks at both Plants 1 and 2 for the air permit. Unit 1 RATA testing is
due 180 days from time of install of 185-186 and Units 5,6,7 Air Permit
Compliance testing is due by March 31 st. Total of both tests are $42,900. HDR is
helping Staff to make sure everything is being done per the air permit.
A motion by Commissioner Silvernale, second by Commissioner Lambert to
Approve Req#010119 Air Stack Emission Testing Plant 1 and Plant 2. Motion
carried unanimously.
10. Adjourn
There being no further business, a motion by Commissioner Cheney, second by
Commissioner Silvernale to adjourn the meeting at 3:48p.m. Motion carried
unanimously.
"" on Martinez,'Secretary
ATTEST `'°,,.4 :d.ti ,��.
Matt Cheney, President
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