HomeMy WebLinkAbout11-26-2025 HUCM Special MeetingMINUTES
Special Budget Meeting — Hutchinson Utilities Commission
Wednesday, November 26, 2025
Call to order — 3:00 p.m.
President Matt Cheney called the meeting to order. Members present: President Matt
Cheney; Vice President Troy Pullis; Secretary Don Martinez; Commissioner Kathy
Silvernale; GM Jeremy Carter
Absent: Commissioner Tom Lambert; Attorney Marc Sebora:
GM Carter thanked the Commissioners for coming and noted that these are preliminary
budget numbers and the Commissioners will have about 3 weeks to review before final
budget numbers need to be approved.
GM carter presented HUC's 2026 preliminary budget, which is the same format as
previous years. GM Carter highlighted the combined divisions, revenues are at $46.8M
with expenses at $46.6M with a Net Profit of $224K, which is a decrease in net profit over
last year. Electric Division shows an increase of $600K in the Power Cost Adjustment.
Sales for Resales shows an increase of $849K. Electric Division Revenues are at $31 AM
with expenses at $33AM with a Net Loss of $2M; this is doubled from last year. Gas
Division Revenues are at $15AM with expenses at $13.2M with a Net Profit of $2.3M
which is about $600K less than last year.GM Carter reviewed the Combined Division
graphs.
Electric Division, Retail Customer sales of $26.5M which is an increase from last year.
Power Cost Adjustment is $1.5M compared to $900K in 2025. Residential, Small General
and Large General all had increases, whereas Industrial Sales showed a decrease from
last year: which means HUC's loads are fairly consistent. Overall Kwhr volume sales
show a .59% decrease.
GM Carter pointed out that Sales for Resales has increased by $849K over 2025 budget
due to a decrease in Capacity Sales of $66,250 and Inc in Market Sales of $915K.
Other Revenues of $511 K are made up of Additional customer charges of $154K, Interest
Earnings of $275K, Bond Premiums of $33K, and GIS Reimbursement of $49K.
GM Carter reviewed the Pictorial Graphs; these graphs show the overall comparison as
to how the revenue is derived. The Consumption History graph shows a snapshot of each
customer class loads.
GM Carter spoke on the Electric Division Expense Budget Highlights. Health Insurance
will be staying with Medica with a 15% increase. Dental Insurance will be moving to
Principal with a 13% increase. LTD will be moving to Hartford with a reduction of $5K,
Basic Life and AD&D benefits remain the same. New for 2026 is the PFML rate of .423,
which will be 50/50 split between ER & EE adding a cost of $13K. PILOT remains the
same. GM Carter reviewed the GRE/MISO Transmission Expense with an increase of
$1.2K along with the MRES Baseload Contract Expense of a $612K increase, MISO
Expenses of a $128K decrease and the Bright Energy Choices Program of $68K which
is a decrease of $55K from last year. Additional Operating Expenses of $227K for Unit 7
Selective Catalytic Reduction (SCR) Exhaust Repairs, $70K for Unit 1 Transformer
Repair, $33K for IT Budget — additional FTE added, $55K additional Unit 5, 6 and 7
inventory, and $40K for Solar Land Lease Agreement were also highlighted.
GM Carter reviewed the pictorial graphs of the Electric Division Expenses.
After discussion of the Electric Division preliminary budget, GM Carter gave an overview
of the Natural Gas Division. Retail Customer Sales decreased $525K and showed a
decrease of 5.9% in forecasted Retail MCF's sold, increase in FCA Credits. Contract
Sales of 3M, TDK, UFC and Brownton show an increase in revenue of $131 K. GM Carter
highlighted Other Revenues of $3.4M; which are made up of N.U/HCP/UFC/UNG
Transport/Reservation Fees of $2.1 M, Electric Division Transportation Fees of $728K,
Bond Premiums of $170K, Customer Charges of $54K, Interest Income of $275K,
Brownton & HCP Operation/Maintenance Agreement of $78K, and GIS Reimbursement
of $26K.
GM Carter concluded by reviewing the pictorial graphs and expense budget highlights of
the Natural Gas Division. GM Carter noted that the Retail Customer Gas purchases show
an increase of $16K, Contracted Customers Gas purchases increase $114K, PILOT
remains the same and Additional Operating Expenses of $70K for Engineering Cost for
PHMSA's changes in programs and Flying Line, Patrolling and System Improvements,
$30K for Transmission Line CIS Survey St. James - Hanska, $38K for Distribution District
Regulator #5 and #6 Improvements and Painting and $21 K for IT Budget — Additional
FTE added.
GM Carter looked to the Commission for questions, concerns or comments on the 2026
Budget Presentation.
President Cheney asked the Commissioners to spend time with GM Carter and ask
questions about the budget between now and December 17th.
There were no concerns from the Commissioners. Commissioners stated that the
information was detailed and clear and to continue to present in the same format.
Discussion was held on the Rate Stabilization Fund along with the large projects that are
coming up in the next few years and the funding for the projects. Normal Cap X can be
pared down in the interim, without sacrificing reliability and safety, as it is worth the
investment to do these larger projects.
Conversations were held on suspending Power Cost and Fuel Cost Adjustment Credits
for 2026. Along with having a Strategic Planning meeting in January/February of 2026.
Commissioners agreed to add item 8g. Approval of Suspending Power Cost and Fuel
Cost Adjustment Credits for 2026 to the Regular Commission Meeting that will be held
after today's Budget Workshop.
Commissioner Tom Lambert walked in at 2:44pm
Conversations were held on the PILOT and it was noted that the Commissioners would
like to discuss this more in the future.
There being no further business, a motion by Commissioner Pullis, second by
Commissioner Martinez to adjourn the meeting at 2:55p.m. Motion carried unanimously,
"Yon Martinez, Secreta
ATTEST:
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