Loading...
05-28-2025 HUCMMINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, May 28, 2025 Call to order — 3:00 p.m. President Matt Cheney called the meeting to order. Members present: President Matt Cheney; Secretary Don Martinez; Vice President Troy Pullis; Commissioner Kathy Silvernale; Commissioner Tom Lambert; GM Jeremy Carter; Attorney Marc Sebora: Conflict of Interest 2. Approve Consent Agenda a. Approve Minutes b. Ratify Payment of Bills Motion by Commissioner Martinez second by Commissioner Pullis to Approve the Consent Agenda. Motion carried unanimously. 3. Approve Financial Statements Mr. Martig presented the Financial Statements. Electric Division Net Income increased by $366k over last year. Main reason was an increase in market sales of $470k due to high prices on April 1 and 2, which also increased generator fuels. Sales for Resales also increased due to the increase in market sales. Mr. Martig noted usage going forward for the year will show an increase in Large General and a decrease in Industrial due to a customer reclassification. Natural Gas Division is very consistent from last year. GM Carter reviewed the Rate Stabilization fund and Power Cost Adjustment. Motion by Commissioner Silvernale, second by Commissioner Lambert to Approve the Financial Statements. Motion carried unanimously. 4. Open Forum 5. Communication a. City Administrator — Matthew Jaunich — i. Construction season - Hassan and Dale street. ii. Exploring options to extend Utilities East of town b. Divisions i. Dan Lang, Engineering Services Manager — 1. Willmar Line Transmission Project with GRE update. Open Houses are scheduled for June 18tn and 19tn ii. Dave Hunstad, Electric Transmission/Distribution Manager — 1. Construction season starting iii. Mike Gabrielson, Production Manager — 1. Tuck pointing has started 2. Stack Testing on Unit 5 is scheduled for June 12tn iv. Byron Bettenhausen, Natural Gas Manager — Nothing to report v. Jared Martig, Financial Manager - Nothing to report c. Human Resources — Angie Radke - i. Working with Byron on Natural Gas tasks d. Legal — Marc Sebora — i. Nothing to report e. General Manager — Jeremy Carter i. Working on possible Tolling Agreement ii. Working on energy contract with prospective customer iii. Draft agreement has been sent off to New Ulm iv. Working on Capacity Agreement that is on the Agenda for discussion 6. Policies a. Review Policies i. Section 5 of Exempt Handbook ii. Section 5 of Non -Exempt Handbook No changes recommended at this time b. Approve Changes i. Vacation (Exempt) ii. Holidays (Exempt and Non -Exempt) iii. Pregnancy and Parenting Leave (Exempt and Non -Exempt) iv. Reasonable Accommodations to an Employee for Health Conditions Relating to Pregnancy (Exempt and Non -Exempt) v. Sick Leave (Exempt and Non -Exempt) vi. Training and Education Assistance (Exempt and Non -Exempt) vii. Small Hand Tools (Non -Exempt) Ms. Radke spoke of the policy changes. All policies listed above with the exception of Pregnancy and Parenting Leave were updated to remove the word Director from the policies, policies are still applicable. Pregnancy and Parenting Leave policy was updated to mirror the League of Minnesota Cities policy. Motion by Commissioner Pullis, second by Commissioner Silvernale to Approve Policy Changes. Motion carried unanimously. 7. Unfinished Business 8. New Business a. Approve Exception Agreement between McLeod Cooperative Power and Hutchinson Utilities Commission 2 Mr. Hunstad presented Approval of Exception Agreement between McLeod Cooperative Power and Hutchinson Utilities Commission. In 2024, IND School District 0423 property located at 1440 South Grade Road SW was annexed into the City and became part of HUC's service territory. The property consists of a small shed and green house with a security light. Due to the small load and distance from HUC's electric infrastructure, Staff is recommending to allow MCP to continue to serve the property as it is today under an exception agreement. Mr. Hunstad noted that L&P Supply of Hutchinson, is currently served by MCP under an exception agreement made in 2018. Motion by Commissioner Martinez, second by Commissioner Lambert to Approve Exception Agreement between McLeod Cooperative Power and Hutchinson Utilities Commission. Motion carried unanimously. b. Approve Change Order #1 to Border States Electric for the Addition of Circuit Breaker Metering CT's Mr. Lang presented Approval of Change Order #1 to Border States Electric for the Addition of Circuit Breaker Metering CT's. Since the time the circuit breakers were ordered there has been some design changes. Motion by Commissioner Silvernale, second by Commissioner Pullis to Approve Change Order #1 to Border States Electric for the Addition of Circuit Breaker Metering CT's. Motion carried unanimously. c. Approve Capacity Confirmation Agreement GM Carter presented Approval of Capacity Confirmation Agreement. Staff is looking into extending excess capacity into an agreement. Right now, HUC has 41 MW excess capacity from the generating units in town. Currently there are 2 contracts in place that consist of the 41 MW, which will expire in May of 2030. Conversations have been held in the past if HUC should extend the contracts. HUC and NextEra Energy Marketing LLC (NEM) have been working on an agreement that would be for a 5-year term (PY2030/2031-2034/2035) with a price at minimum of $6.90/kW-Month. In the course of NEM consummating a final agreement with their counter -party, and if the price is higher than $6.90kW-Month, a revised agreement or an addendum to this agreement will come back before the board for approval. Discussion was held on the market pricing and timing of the agreement along with the clause if HUC cannot deliver. Motion by Commissioner Pullis, second by Commissioner Lambert to Approve Capacity Confirmation Agreement. Motion carried unanimously. d. Set Joint Special Meeting for June 4, 7am-9am with City Council and EDA at Hutchinson City Center Motion by Commissioner Martinez, second by Commissioner Silvernale to Set Joint Special Meeting for June 4, 7am-9am with City Council and EDA at Hutchinson City Center. Motion carried unanimously. 9. Adjourn There being no further business, a motion by Commissioner Pullis, second by Commissioner Martinez to adjourn the meeting at 3:31 p.m. Motion carried unanimously. " ATTEST: Matt Cheney;` resident 4 Don Martinez, Secretary(—)