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HomeMy WebLinkAbout01-28-2026 HUCCPHUTCHINSON UTILITIES COMMISSION AGENDA REGULAR MEETING January 28, 2026 3:00 p.m. 1. CONFLICT OF INTEREST 2. COMMISSION REORGANIZATION a. President — Don Martinez b. Vice President — Tom Lambert C. Appoint Secretary — Matt Cheney d. Appoint Legal Council e. Appoint Recording Secretary f. Designate Depositories for Utility Funds i. Citizens Bank & Trust ii. Wells Fargo Bank iii. Wells Fargo Advisors iv. Home State Bank v. Morgan Stanley vi. Cetera Investment Services 3. APPROVE CONSENT AGENDA a. Approve Minutes b. Ratify Payment of Bills 4. APPROVE FINANCIAL STATEMENTS 5. OPEN FORUM 6. COMMUNICATION a. City Administrator b. Divisions C. Human Resources d. Legal e. General Manager 7. POLICIES a. Review Policies i. Section 1 of Exempt Handbook ii. Section 1 of Non -Exempt Handbook b. Approve Changes i. Introduction ii. Definitions 8. UNFINISHED BUSINESS 9. NEW BUSINESS a. Review Annual Solar Production b. Approve Cogeneration and Small Power Production Tariff C. Review 2025 Distributed Energy Resources Generation Report d. Approve Pay Equity Report e. Approve Change Order #2 — Hutchinson Substation Control Enclosure Modifications f. Approve Advertisement for Bids — Plant #1 Substation 115kV Transformer 10. ADJOURN MINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, December 17, 2025 Call to order — 3:00 p.m. President Matt Cheney called the meeting to order. Members present: President Matt Cheney; Secretary Don Martinez; Commissioner Kathy Silvernale; Commissioner Tom Lambert; GM Jeremy Carter; Attorney Marc Sebora: Absent: Vice President Troy Pullis; 1. Conflict of Interest 2. Approve Consent Agenda a. Approve Minutes b. Ratify Payment of Bills Motion by Commissioner Martinez second by Commissioner Lambert to Approve the Consent Agenda. Motion carried unanimously. 3. Approve Financial Statements Mr. Martig presented the Financial Statements. Electric Division Operating expenses increased due to Solar Array Repairs of $14K, MPCA Fees of $11 K and Unit 7 Repairs of $32K. Natural Gas Division Operating expenses also show an increase due to CIS Survey of $30K, Risk Assessment of $6K and Heartland Corn Materials of $14K. GM Carter reviewed wholesale costs, hedging and spot market pricing along with the Cash Balance. 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. Getting ready for next year on Street projects ii. Busy year coming upon Construction b. Divisions i. Dan Lang, Engineering Services Manager- 1. Hutch Substation Update ii. Dave Hunstad, Electric Transmission/Distribution Manager —Absent iii. Mike Gabrielson, Production Manager — 1. Continuing to work with GE regarding Unit 1 2. Working on water leak at Plant 1 cooling tower 1 6. VA 0 iv. Jared Martig, Financial Manager — Nothing to Report v. Byron Bettenhausen, Natural Gas Manager — Absent c. Human Resources —Angie i. Working on Year End ii. Pay Equity Report will d. Legal — Marc Sebora — i. Nothing to report Rad ke - items be in Jan Packet e. General Manager — Jeremy Carter — Nothing to report Policies a. Review Policies No changes recommended at this time Unfinished Business New Business a. Approve 2026 Non -Union Pay Grid Adjustment GM Carter presented Approval of 2026 Non -Union Pay Grid Adjustment. GM Carter reviewed the statistical findings along with stating that the pay grid customarily matches the Union contract that has been put in place. Motion by Commissioner Martinez, second by Commissioner Silvernale to Approve 2026 Non -Union Pay Grid Adjustment. Motion carried unanimously. b. Approve 2026 Electric and Natural Gas Operating Budgets & 5 Year CIP GM Carter presented Approval of 2026 Electric and Natural Gas Operating Budgets and 5 Year CIP. At the November 26, 2025, Budget Commission meeting, a high-level overview of the 2026 budgets were reviewed and discussed in detail. Since that time, there have been four amendments to the preliminary budget that include: 1) Suspension of using Rate Stabilization Funds in 2026 in the electric division, 2) Suspension of providing Fuel Cost Adjustment credits in the natural gas division, 3) Adding $44K for a Cost of Service Study in 2026 and, 4) Adding $10K for the Compensation Study. The current budget reflects a 4% grid shift for non -union employees and a general wage adjustment of 4% for union members. Motion by Commissioner Lambert, second by Commissioner Silvernale to Approve 2026 Electric and Natural Gas Operating Budgets and CIP. Motion 2 carried unanimously. c. Approve Cost of Service & Rate Design Study with UFS GM Carter presented Approval of Cost of Service & Rate Design Study with UFS. HUC has identified that performing a COS study every 5 years is critical to ensure adequate revenue requirements are met to conduct HUC business in a proper fashion. If circumstances warrant a COS study be completed earlier than every 5 years a recommendation would be brought to the commission for consideration. The last COS study was conducted in 2022 using 2021 & 2022 financial and operation information as part of the test data. The COS study proposal is to use the consulting firm UFS, which has been used in the last several studies for HUC. The proposal amount has been added to the 2026 budget. Motion by Commissioner Silvernale, second by Commissioner Lambert to Approve Cost of Service & Rate Design Study with UFS. Motion carried unanimously. d. Approve Commercial Solar Agreement with Cedar Creek Energy e. Approve Solar PV Agreement with Apadana Energy f. Approve Solar PV Agreement Ziegler Energy Solution g. Approve Solar PV Agreement with Apadana Energy h. Approve Solar PV Agreement Ziegler Energy Solutions GM Carter presented Agenda items 8d-8h together. Back on September 28, 2025, HUC entered into an agreement with Energy Management Solutions to help with the application process for Solar on Public Buildings Grant Program. The State will reimburse 70% of the total costs and 30% will be reimbursed by the Federal Government. HUC is still in the review process with the State, and the next step is to have an agreement signed with the solar developer. The agreement is contingent on being awarded the Grant for the project. Once the Grant is awarded, HUC will need to send a 10% down payment by December 31, 2025, to initiate the project. GM Carter reviewed the buildings for each agenda item. Item 8d is for the Main Office Building, Item 8e is for the Inventory Building, Item 8f is for Plant 1, Item 8g is for the Cold Storage Building, and 8h is for Plant 2. Discussion was on held on the size and cost for each building, total savings amount, cost to HUC if Federal grant money is not received and why multiple vendors are being used. HUC received a letter from the State on December 15, 2025, stating the 70% will 3 be awarded. Motion by Commissioner Martinez, second by Commissioner Lambert to Approve items 8d-8h. Motion carried unanimously. i. Approve Plant #2 Substation Load Study with DGR. Mr. Lang presented Approval of Plant #2 Substation Load Study with DGR. HUC staff is recommending to enter into an agreement (Task Order #11) with DGR Engineering to study the anticipated 20MW load to be added to the Plant #2 Substation. DGR will review HUC's design as well as the relay settings presently in place at the 3M and Plant #2 Substations to ensure proper operation with the additional load. Motion by Commissioner Silvernale, second by Commissioner Martinez to Approve Plant #2 Substation Load Study with DGR. Motion carried unanimously. j. Approve Plant #1 Substation 69-115kV Conversion Task Order #9- Amendment #1 with DRG. Mr. Lang presented Approval of Plant #1 Substation 69-115kV Conversion Task Order #9 — Amendment #1 with DGR. In February of 2025 HUC entered into an agreement (Task Order #9) with DGR Engineering to evaluate the Plant #1 Substation 69 to 115kV conversion as part of the Willmar Line 115kV rebuild project and develop the preliminary substation design and cost estimate. Amendment #1 will direct DGR to begin the process of developing a transformer specification which will be used for bid solicitation. Motion by Commissioner Martinez, second by Commissioner Silvernale to Approve Plant #1 Substation 69-115kV Conversion Task Order #9 — Amendment #1 with DGR. Motion carried unanimously. k. Approve Paid Family Medical Leave (PFML) Policy Ms. Radke presented Approval of Paid Family Medical Leave (PFML) Policy. HUC is looking to implement a new Organizational Policy to both the Union and Non -Union Policy Handbooks. The Organizational Policy addresses the new MN state requirements that go into effect on 1/1/2026 as it pertains to MN Paid Leave (MNPL). HUC was approved by the State to go with an Approved Private Insurance Carrier at a rate of .423 vs the State's .88 rate. The PFML rate of .423 12 will be split 50/50 between ER and EE. Motion by Commissioner Lambert, second by Commissioner Silvernale to Approve Paid Family Medical Leave (PFML) Policy. Motion carried unanimously. President Cheney added item 8m. m. Approve Customes Power of Attorney Mr. Martig presented Approval of Customes Power of Attorney. In August, HUC placed an order for actuators from GenSys in Germany. The actuators were to be delivered to HUC but ended up weighing too much and have been stuck at the airport in customs for the past month. After conversations, HUC discovered that a Customs Broker is needed in order to have the actuators released. Pro Commerce International Logistics is the sister company of Saia LTL Freight who Staff has been working with. The process requires a power of attorney to be signed for Pro Commerce International Logistics to conduct customs business on HUC's behalf. Best estimated price is $250 for custom broker, $125 for warehouse fees and $150 for shipping. HUC is not sure if any tariffs will be applicable. Motion by Commissioner Lambert, second by Commissioner Martinez to Approve Customes Power of Attorney. Motion carried unanimously. I. Conduct the Performance Review of Hutchinson Utilities Commission General Manager Pursuant to Minnesota Statute 13D.05 Subd. 3(a) President Cheney introduced the agenda item, the General Manager's annual performance review. President Cheney advised GM Carter that he has the option to have the performance review conducted as either an open session or a closed session of the Utility Commission. GM Carter indicated his decision to have the review as part of a closed session. President Cheney entertained a motion to go into closed session to conduct the twelve-month (annual) performance review as permitted under Minnesota Statute 13D.05, Subdivision 3(a). Motion by Commissioner Lambert, second by Commissioner Martinez to go into closed session to conduct the General Manager's performance review. The motion passed unanimously. The Commission then proceeded into a closed session at 3.39 p.m. 5 Hutchinson Utilities Commission Summary of Closed Meeting Proceedings General Manager Performance Appraisal Wednesday, December 17, 2025 On December 17, 2025, the Hutchinson Utilities Commission conducted a closed meeting for the annual performance appraisal for General Manager, Jeremy Carter. Individuals present included General Manager Jeremy Carter, Commission Members Matt Cheney, Don Martinez, Kathy Silvernale, and Tom Lambert, Attorney Marc Sebora, and Administrative/HR Coordinator Angie Radke. Mr. Carter exercised his right to close the proceedings to the public as permitted under Minnesota Statute 13D.05, Subdivision 3(a). Motion by Lambert, second by Martinez to go into closed session to conduct the General Manager's performance review. The motion passed unanimously. The Commission then proceeded into a closed session at 3:39 p.m. The Commission reviewed Mr. Carter's performance for the current calendar year. The review is required per the terms of the employment contract in place between the Hutchinson Utilities Commission and General Manager Carter. Mr. Carter's performance was evaluated in the following areas: Organizational Management, Fiscal/Business Management, Program Development, Relationship & Communication with the Commission, Long -Range Planning, Relationships with Public & Outside Organizations and Overall Performance Ranking. The consensus of the Commission is that Mr. Carter's cumulative performance for the review period was found to be 4.03 on the rating scale of 0 — 5, and per the Hutchinson Utilities Commission, is outstanding on the ratings scale. The employment contract between Hutchinson Utilities and Mr. Carter indicates that salary increases for the General Manager are subject to the provisions of the Compensation Plan section of the Hutchinson Utilities Commission Exempt Employee Handbook. Motion by Silvernale, second by Lambert to close the closed session. The motion passed unanimously. The Commission moved back into open session at 4:30 p.m. Motion by Lambert, second by Martinez to approve a 5% salary increase according to the compiled results of the GM Review. The motion carried unanimously. Motion to adjourn by Lambert, second by Silvernale. The motion carried unanimously, and the meeting adjourned at 4:31 p.m. ATTEST: Matt Cheney, President 0 Don Martinez, Secretary MINUTES Special Meeting — Hutchinson Utilities Commission Tuesday, December 23, 2025 Call to order — 7:30 a.m. Vice President Troy Pullis called the meeting to order. Members present: Vice President Troy Pullis; Secretary Don Martinez; Commissioner Tom Lambert; Attorney Marc Sebora; GM Jeremy Carter Absent: President Matt Cheney; Commissioner Kathy Silvernale Also present: Byron Bettenhausen; Angie Radke Purpose of the meeting is to Approve Final Gas Supply and NAESB Agreements. GM Carter thanked the Commissioners for coming in and provided a recap of the resolutions that were approved in November authorizing HUC to continue to move forward on participating in a natural gas prepay deal. GM Carter noted that since November minor amendments were completed to create final draft agreements for the Commission to approve. Most notably in the "system supply" Gas Supply Agreement article 6.5 was added to clarify that if JPMVC fails to make payment to upstream gas supplier within the prepay transaction and that payment is provided for by gas purchaser HUC, HUC shall provide notice to MCE for reimbursement of payment made. Discussion was held on the discount, participants, and the risk involved. GM Carter added that final dates and discounts will be added to the final documents approved once the bonds have been issued, the agreements are finally executed, and the minimum discounts are met. Motion by Commissioner Martinez, second by Commissioner Lambert to Approve Final Gas Supply and NAESB Agreements. Motion carried unanimously. There being no further business, a motion by Commissioner Martinez, second by Commissioner Lambert to adjourn the meeting at 7-51a.m. Motion carried unanimously. 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N z w N a � w w Q .i. HUTCHINSON UTILITIES COMMISSION COMBINED DIVISIONS FINANCIAL REPORT FOR DECEMBER, 2025 100% of Year Comp. 2025 2024 Di %Chna 2025 2024 Di %Chna Full Yr Bud %of Bud Combined Division Customer Revenue $ 3,590,312 $ 3,391,382 $ 198,930 Sales for Resale $ 293,286 $ 395,616 $ (102,330) NG Transportation $ 170,039 $ 172,466 $ (2,426) Electric Division Transfer $ 60,639 $ 60,383 $ 255 Other Revenues $ 600,890 $ 498,062 $ 102,829 Interest Income $ (21,340) $ 69,558 $ (90,898) TOTAL REVENUES $ 4,693,827 $ 4,587,466 $ 106,360 Salaries & Benefits Purchased Commodities Transmission Generator Fuel/Chem. Depreciation Transfers (Elect./City) Operating Expense Debt Interest TOTAL EXPENSES NET PROFIT/(LOSS) $ 861,512 $ 437,298 $ 424,214 $ 2,108,685 $ 2,092,174 $ 16,511 $ 149,182 $ 157,349 $ (8,167) $ 96,607 $ 89,905 $ 6,702 $ 354,190 $ 314,046 $ 40,144 $ 222,526 $ 222,269 $ 257 $ 639,262 $ 531,843 $ 107,419 $ 38,805 $ 49,688 $ (10,883) $ 4,470,769 $ 3,894,572 $ 576,198 $ 223,057 $ 692,895 $ (469,838) 5.9% $ 35,636,575 $ 35,147,936 $ 488,639 1.4% $ 38,041,145 93.7% (25.9%) $ 6,803,177 $ 3,656,427 $ 3,146,751 86.1% $ 3,490,250 194.9% (1.4%) $ 2,082,452 $ 2,003,454 $ 78,998 3.9% $ 2,071,218 100.5% 0.4% $ 727,666 $ 724,600 $ 3,066 0.4% $ 727,666 100.0% 20.6% $ 1,262,915 $ 1,870,500 $ (607,585) (32.5%) $ 483,841 261.0% (130.7%) $ 689,664 $ 970,815 $ (281,151) (29.0%) $ 633,457 108.9% 2.3%1 $ 47,202,449 $ 44,373,731 $ 2,828,717 6.4%1 $ 45,447,577 103.9% 97.01% $ 7,962,661 $ 7,558,692 $ 403,969 0.8% $ 19,776,673 $ 19,167,749 $ 608,924 (5.2%) $ 2,734,140 $ 2,522,972 $ 211,168 7.5% $ 2,226,840 $ 1,199,532 $ 1,027,308 12.8% $ 4,233,121 $ 4,284,592 $ (51,471) 0.1% $ 2,670,294 $ 2,667,228 $ 3,066 20.2% $ 3,941,444 $ 3,686,781 $ 254,662 (21.9%) $ 585,373 $ 693,606 $ (108,233) 14.8% $ 44,130,545 $ 41,781,151 $ 2,349,395 (67.8%) $ 3,071,904 $ 2,592,581 $ 479,323 December December i, YTD YTD 2025 2024 Change 2025 2024 Change Gross Margin %: 31.1% 36.0% -5.0% 34.0% 34.0% 0.0% Operating Income Per Revenue $ (%): -6.7% 5.2% -11.9% 4.3% 1.6% 2.7% Net Income Per Revenue $ (%): 4.8% 15.1% -10.4% 6.5% 5.8% 0.7% 5.3% $ 8,248,534 96.5% 3.2% $ 20,256,167 97.6% 8.4% $ 3,015,064 90.7% 85.6% $ 1,284,200 173.4% (1.2%) $ 4,310,000 98.2% 0.1% $ 2,670,292 100.0% 6.9% $ 3,174,901 124.1% i5.6% $ 596,257 98.2% 5.6% $ 43,555,415 101.3% $ 1,892,162 162.3% 2025 HUC Budget Target 34.2% 3.5%N 4.2%N uuIIUuIINNI HUTCHINSON UTILITIES COMMISSION ELECTRIC DIVISION FINANCIAL REPORT FOR DECEMBER, 2025 ;w�t4�.t�/ii - i //////� f , IWIffirtmimY0mPiW(((((llllllllrrrr�������llllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllmI ��������Ilflltttitf������ fm �lllmm IAm�ff�ll������������������� o 100%ofYearComp. 2025 2024 Di . %Chna 2025 2024 Di %Chna FullYrBud %of Bud Electric Division Customer Revenue $ 2,013,548 $ 1,932,545 $ 81,002 4.2% $ 23,924,710 $ 23,860,523 $ 64,186 0.3% $ 25,609,217 93.4% Sales for Resale $ 293,286 $ 395,616 $ (102,330) (25.9%) $ 6,803,177 $ 3,656,427 $ 3,146,751 86.1% $ 3,490,250 194.9% Other Revenues $ 300,863 $ 164,892 $ 135,971 82.5% $ 586,833 $ 472,936 $ 113,897 24.1% $ 191,126 307.0% Interest Income $ (4,271) $ 36,382 $ (40,653) (111.7%) $ 366,566 $ 502,346 $ (135,780) (27.0%) $ 333,457 109.9% TOTAL REVENUES $ 2,603,426 $ 2,529,436 $ 73,991 2.9% $ 31,681,285 $ 28,492,231 $ 3,189,054 11.2% $ 29,624,050 106.9% Salaries & Benefits $ 559,886 $ 339,200 $ 220,686 Purchased Power $ 1,063,869 $ 1,136,814 $ (72,945) Transmission $ 149,182 $ 157,349 $ (8,167) Generator Fuel/Chem. $ 96,607 $ 89,905 $ 6,702 Depreciation $ 254,589 $ 216,550 $ 38,039 Transfers (Elect./City) $ 172,789 $ 172,534 $ 255 Operating Expense $ 552,511 $ 450,349 $ 102,161 Debt Interest $ 30,138 $ 32,771 $ (2,633) TOTAL EXPENSES $ 2,879,571 $ 2,595,473 $ 284,098 NET PROFIT/(LOSS) $ (276,145) $ (66,037) $ (210,107) 65.1% $ 5,825,452 $ 5,662,805 $ 162,648 (6.4%) $ 12,385,247 $ 11,904,189 $ 481,057 (5.2%) $ 2,734,140 $ 2,522,972 $ 211,168 7.5% $ 2,226,840 $ 1,199,532 $ 1,027,308 17.6% $ 3,056,726 $ 3,160,015 $ (103,289) 0.1% $ 2,073,468 $ 2,070,403 $ 3,065 22.7% $ 2,777,388 $ 2,683,178 $ 94,210 (8.0%) $ 390,623 $ 421,123 $ (30,500) 10.9% $ 31,469,884 $ 29,624,217 $ 1,845,667 318.2% $ 211,402 $ (1,131,985) $ 1,343,387 2.9% $ 5,955,489 97.8% 4.0% $ 12,605,893 98.2% 8.4% $ 3,015,064 90.7% 85.6% $ 1,284,200 173.4% (3.3%) $ 3,200,000 95.5% 0.1% $ 2,073,468 100.0% 3.5% $ 2,145,148 129.5% 7.2% $ 393,257 $ 30,672,519 99.3% 102.6% 6.2% 10 70/\ C 11 nn4 AGO\ 11n 10/\ 100% of Year Comp. 2025 2024 Di . %Chna 2025 2024 Di %Chna FullYrBud %of Bud Electric Division Residential 4,822,961 4,631,212 191,749 4.14% 54,553,056 52,253,044 2,300,012 4.40% 53,837,879 101.3% All Electric 352,324 316,711 35,613 11.24% 2,502,879 2,242,174 260,705 11.63% 2,462,216 101.7% Small General 1,600,755 1,540,907 59,848 3.88% 17,881,801 17,334,013 547,788 3.16% 18,074,963 98.9% Large General 7,291,610 5,978,010 1,313,600 21.97% 92,559,960 77,961,863 14,598,097 18.72% 80,805,047 114.5% Industrial 7,381,000 8,639,000 (1,258,000) (14.56%) 96,872,000 109,141,000 (12,269,000) (11.24%) 110,542,769 87.6% Total KWH Sold 21,448,650 21,105,840 342,810 1.62% 264,369,696 258,932,094 5,437,602 2.10%1 265,722,875 99.5% December December YTD YTD 2025 HUC 2025 2024 Change 2025 2024 Change Budget Target Gross Margin %: 23.7% 31.2% -7.5% 28.1% 27.9% 0.2% 27.0% Operating Income Per Revenue $ (%): -21.6% -8.5% -13.1% -0.5% -5.4% 4.9% -3.5% 0%- 1% Net Income Per Revenue $ (%): -10.6% -2.6% -8.0% 0.7% -4.0% 4.6% -3.5% Customer Revenue per KWH: $0.0939 $0.0916 $0.0023 $0.0905 $0.0921 -$0.0017 $0.0964 $0.0964 Total Power Supply Exp. per KWH: $0.0826 $0.0762 $0.0064 $0.0841 $0.0771 $0.0070 $0.0804 $0.0804 Net Loss increased by $210,107 over December 2024. Revenues were up slightly but offset by increases in salaries and operating expenses that were mostly non cash transactions. Operating expenses had $110,000 written off of Sales Tax Receivable as those claims were denied. Salaries increased mostly due to a noncash PERA entry made in December 2024. That entry has not been made for 2025 yet as those numbers are not yet available. Sales for Resale of $293,286 consisted of $62,286 in market sales, $98,000 in capacity sales to Rice Lake, $70,000 in capacity sales to AEP, and $63,000 in capacity sales to Nextera. December 2024 Sales for Resale of $395,616 included $152,366 in market sales, $98,000 in capacity sales to Rice Lake and $145,250 in capacity sales to AEP. December 2023 Sales for Resale of $340,874 consisted of $96,624 in market sales, $98,000 in capacity sales to Rice Lake and $146,250 in capacity sales to AEP. Overall Purchased Power decreased by $72,945. MRES purchases increased by $44,576 and market purchases/MISO costs decreased by $117,521. The average cost of MISO power was $33.80/mwh (2,548 mwh's purchased), compared to $27.68mwh (2,029 mwh's purchased) in December 2024. re was no power cost adjustment for December 2025 leaving the total customer credits at $414,032 YTD. re was no power cost adjustment for December 2024 leaving the total customers were charged at $556,670 YTD. Gas Division Customer Revenue Transportation Electric Div. Transfer Other Revenues Interest Income TOTAL REVENUES Salaries & Benefits Purchased Gas Operating Expense Depreciation Transfers (City) Debt Interest TOTAL EXPENSES NET PROFIT/(LOSS) HUTCHINSON UTILITIES COMMISSION GAS DIVISION FINANCIAL REPORT FOR DECEMBER, 2025 100% of Year Comp. 2025 2024 2 %Chna 2025 2024 2 . %Chna Full YrBud %of Bud $ 1,576,764 $ 1,458,837 $ 117,927 8.1% $ 11,711,865 $ 11,287,413 $ 424,452 3.8% $ 12,431,928 94.2% $ 170,039 $ 172,466 $ (2,426) (1.4%) $ 2,082,452 $ 2,003,454 $ 78,998 3.9% $ 2,071,218 100.5% $ 60,639 $ 60,383 $ 255 0.4% $ 727,666 $ 724,600 $ 3,066 0.4% $ 727,666 100.0% $ 300,027 $ 333,170 $ (33,142) (9.9%) $ 676,082 $ 1,397,564 $ (721,482) (51.6%) $ 292,715 231.0% $ (17,069) $ 33,175 $ (50,245) (151.5%) $ 323,098 $ 468,469 $ (145,371) (31.0%) $ 300,000 107.7% $ 2,090,400 $ 2,058,031 $ 32,370 1.6% $ 15,521,163 $ 15,881,500 $ (360,337) (2.3%) $ 15,823,527 98.1% $ 301,626 $ 98,098 $ 203,529 207.5% $ 2,137,209 $ 1,895,887 $ 241,322 12.7% $ 2,293,045 93.2% $ 1,044,816 $ 955,359 $ 89,457 9.4% $ 7,391,426 $ 7,263,559 $ 127,867 1.8% $ 7,650,274 96.6% $ 86,751 $ 81,494 $ 5,258 6.5% $ 1,164,056 $ 1,003,603 $ 160,453 16.0% $ 1,029,753 113.0% $ 99,601 $ 97,496 $ 2,105 2.2% $ 1,176,395 $ 1,124,576 $ 51,819 4.6% $ 1,110,000 106.0% $ 49,737 $ 49,735 $ 2 0.0% $ 596,826 $ 596,825 $ 1 0.0% $ 596,824 100.0% $ 8,667 $ 16,917 $ (8,250) 0.0% $ 194,750 $ 272,483 $ (77,733) 28.5% $ 203,000 95.9% $ 1,591,198 $ 1,299,099 $ 292,100 22.5% $ 12,660,661 $ 12,156,934 $ 503,727 4.1% $ 12,882,896 98.3% $ 499,202 $ 758,932 $ (259,730) (34.2%) $ 2,860,502 $ 3,724,566 $ (864,064) (23.2%) $ 2,940,631 97.3% 100% of Year Comp. 2025 2024 2 %Chnq 2025 2024 p %Chnq Full YrBud %of Bud Gas Division Residential 79,002,473 Commercial 56,041,154 Industrial 95,349,609 69,331,403 49,344,212 90,583,827 9,671,070 6,696,942 4,765,782 13.95% 13.57% 5.26% 419,927,409 319,004,351 829,667,950 367,176,151 282,949,225 773,724,270 52,751,258 36,055,126 55,943,680 14.37% 12.74% 7.23% 435,250,000 337,584,000 895,764,000 96.5% 94.5% 92.6% Total CF Sold 230,393,236 209,259,442 21,133,794 10.10% 1,568,599,710 1,423,849,646 144,750,064 10.17% 1,668,598,000 94.0% December December YTD YTD 2025 HUC 2025 2024 Change 2025 2024 Change Budget Target Gross Margin %: 40.5% 42.6% -2.1% 46.6% 45.9% 0.6% 48.0% Operating Income Per Revenue $ (%): 12.4% 24.1% -11.7% 14.5% 15.5% -1.0% 17.0% Net Income Per Revenue $ (%): 23.9% 36.9% -13.0% 18.4% 23.5% -5.0% 18.6% Contracted Customer Rev. per CF: $0.0066 $0.0067 -$0.0001 $0.0066 $0.0067 -$0.0001 $0.0061 Customer Revenue per CF: $0.0070 $0.0072 -$0.0001 $0.0083 $0.0092 -$0.0009 $0.0087 $0.0087 Total N.G. Supply Exp. per CF: $0.0047 $0.0046 $0.0000 $0.0050 $0.0053 ($0.0004) $0.0048 $0.0048 Notes/Graphs: December Net Income decreased by $259,730. Revenues were offset slightly but offset by increased salaries and purchased gas. Salaries were mostly noncash just like the electric division. Both the PERA entry as well as increased vacation accrual led to the difference in salaries. December 2025 Fuel Credit Adjustment was $1.28027/MCF crediting customers $177,821 for the month and $1,009,157 YTD. December 2024 Fuel Credit Adjustment was $1.35692/MCF crediting customers $165,613 for the month and $443,659 YTD. 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 DECEMBER 31, 2025 Electric Gas Total Total Net Change Division Division 2025 2024 Total (YTD) (7,896,371.05) 14,608,802.38 6,712,431.33 12,828,915.64 (6,116,484.31) 680.00 170.00 850.00 850.00 - 2,750,000.00 700,000.00 3,450,000.00 3,450,000.00 - 1,345,802.00 596,824.00 1,942,626.00 1,942,626.00 - 1,301,838.58 - 1,301,838.58 478,180.54 823,658.04 - 615,294.19 615,294.19 615,294.19 - 800,000.00 200,000.00 1,000,000.00 1,000,000.00 - 98,471.36 - 98,471.36 99,004.67 (533.31) - 182,000.00 182,000.00 181,916.63 83.37 1,183,256.00 2,072,000.00 3,255,256.00 3,255,256.00 - (416,323.11) 18,975,090.57 18,558,767.46 23,852,043.67 (5,293,276.21) 1,777,356.35 1,604,465.45 3,381,821.80 3,281,696.87 100,124.93 49,785.32 49,785.33 99,570.65 148,628.57 (49,057.92) 1,827,141.67 1,654,250.78 3,481,392.45 3,430,325.44 51,067.01 2,275,795.02 509,362.03 2,785,157.05 2,543,644.45 241,512.60 145,879.71 90,442.46 236,322.17 99,024.34 137,297.83 121,584.19 - 121,584.19 397,232.24 (275,648.05) 342,759.00 - 342,759.00 342,759.00 - - 114,253.00 114,253.00 114,253.00 - 2,886,017.92 714,057.49 3,600,075.41 3,496,913.03 103,162.38 4,296,836.48 21,343,398.84 690,368.40 3,899,918.60 95,282,565.15 45,149,321.56 (51,056,249.75) (23,381,396.70) 9,896,434.64 202.09 54,813,118.44 25,668,045.55 25,640,235.32 30,779,282.14 (5,139,046.82) 4,590,287.00 4,590,287.00 - 140,431,886.71 138,633,002.77 1,798,883.94 (74,437,646.45) (70,483,179.76) (3,954,466.69) 9,896,636.73 2,901,165.83 6,995,470.90 80,481,163.99 75,641,275.84 4,839,888.15 Total Assets 59,109,954.92 47,011,444.39 106,121,399.31 106,420,557.98 (299,158.67) HUTCHINSON UTILITIES COMMISSION BALANCE SHEET - CONSOLIDATED DECEMBER 31, 2025 Electric Gas Total Total Net Change Division Division 2025 2024 Total (YTD) Current Liabilities Current Portion of Long-term Debt Bonds Payable 820,000.00 2,080,000.00 2,900,000.00 2,770,000.00 130,000.00 Bond Premium - 185,608.32 185,608.32 185,608.32 - Lease Liability - Solar Array 19,546.00 - 19,546.00 - 19,546.00 Accounts Payable 2,443,143.71 1,374,804.96 3,817,948.67 4,206,034.14 (388,085.47) Accrued Expenses Accrued Interest 30,138.03 8,666.65 38,804.68 49,687.98 (10,883.30) Accrued Payroll 37,554.18 13,975.47 51,529.65 197,966.04 (146,436.39) Total Current Liabilities 3,350,381.92 3,663,055.40 7,013,437.32 7,409,296.48 (395,859.16) Long -Term Liabilities Noncurrent Portion of Long-term Debt 2017 Bonds 10,930,000.00 - 10,930,000.00 11,750,000.00 (820,000.00) 2012 Bonds - - - 2,080,000.00 (2,080,000.00) Bond Premium 2012 398,695.44 (15,467.73) 383,227.71 602,292.99 (219,065.28) Pension Liability- Electric 1,832,248.00 - 1,832,248.00 1,832,248.00 - Pension Liability - Electric OPEB 39,880.00 - 39,880.00 39,880.00 - Pension Liability- Nat Gas - 610,749.00 610,749.00 610,749.00 - Pension Liability - Nat Gas OPEB - 13,293.00 13,293.00 13,293.00 - Accrued Vacation Payable 635,863.89 224,492.28 860,356.17 739,330.02 121,026.15 Accrued Severance 224,153.38 44,404.41 268,557.79 245,721.73 22,836.06 Deferred Outflows - Electric 1,294,449.00 - 1,294,449.00 1,294,449.00 - Deferred Outflows - Nat Gas - 431,483.00 431,483.00 431,483.00 - Total Long -Term Liabilities 15,355,289.71 1,308,953.96 16,664,243.67 19,639,446.74 (2,975,203.07) Net Position Retained Earnings 40,404,283.29 42,039,435.03 82,443,718.32 79,371,814.76 3,071,903.56 Total Net Position 40,404,283.29 42,039,435.03 82,443,718.32 79,371,814.76 3,071,903.56 Total Liabilities and Net Position 59,109,954.92 47,011,444.39 106,121,399.31 106,420,557.98 (299,158.67) Hutchinson Utilities Commission Cash -Designations Report, Combined 12/31/2025 Financial Institution Current Interest Rate Annual Interest Balance, December 2025 Balance, November 2025 Change in Cash/Reserve Position Savings, Checking, Investments varies varies varies 18,558,767.46 21,219,207.57 (2,660,440.11) Total Operating Funds 18,558,767.46 21,219,207.57 (2,660,440.11) 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 2026 Operating Bud. Charter (Formula Only) Risk Mitigation Amount 5 Year CIP (2025-2029 Fleet & Infrastructure Maintenance) 280,471.36 3,068,528.13 (2,788,056.77) 3,255,256.00 3,255,256.00 3,535,727.36 6,323,784.13 (2,788,056.77) 7,079,514.50 6,542,569.17 536,945.33 1,917,132.77 1,974,541.57 (57,408.80) 1, 942, 626.00 1, 942, 626.00 1, 000, 000.00 1, 000, 000.00 3,450,000.00 3,450,000.00 - 15,389,273.27 14,909,736.74 479,536.53 YE YE YE YE YT0 HUC 2021 2022 2023 2024 2025 Target Debt to Asset 30.8% 31.4% 28.6% 26.0% 22.3% Current Ratio 5.22 4.47 4.48 3.67 3.10 RONA 0.41% -1.38% 1.96% 2.63% 3.23% Historical Change in Cash Balance Month End Electric Elec. Change Natural Gas Gas Change Total Total Change 12/31/2025 (416,323) 18,975,091 18,558,767 12/31/2024 6,134,710 (6,551,033) 17,717,453 1,257,637 23,852,164 (5,293,396) 12/31/2023 12,158,338 (6,023,628) 15,622,242 2,095,211 27,780,580 (3,928,416) 12/31/2022 11,633,212 525,126 15,450,554 171,688 27,083,766 696,815 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 12/31/2025 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest December 2025 November 2025 Position �' Rr Savings, Checking, Investments varies varies varies 18,558,767.46 21,219,207.57 (2,660,440.11) Total HUC Operating Funds 18,558,767.46 21,219,207.57 (2,660,440.11) Debt Restricted Requirements Debt Restricted Requirements Total Restricted Funds Bond Covenants - sinking fund Bond Covenants -1 year Max. P & 1 98,471.36 1,183,256.00 1,281,727.36 987,028.13 1,183,256.00 2,170,284.13 (888,556.77) (888,556.77) Excess Reserves Less Restrictions, Electric (1,698,050.47) 465,107.29 (2,163,157.76) J11J! !!1 1 !1 J Operating Reserve Min 60 days of 2026 Operating Bud. 5,068,639.83 4,578,753.17 489,886.67 Rate Stabalization Funds $400K-$1.2K 1,301,838.58 1,359,247.38 (57,408.80) PILOT Funds Charter (Formula Only) 1,345,802.00 1,345,802.00 Catastrophic Funds Risk Mitigation Amount 800,000.00 800,000.00 Capital Reserves 5 Year CIP (2025-2029 Fleet & Infrastructure Maintenance) 2,750,000.00 2,750,000.00 - Total Designated Funds 11,266,280.41 10,833,802.55 432,477.87 YE YE YE YE YTD APPA Ratio HUC 2021 2022 2023 2024 2025 5K-10K Cust. Target Debt to Asset Ratio (* w/Gen.) 32.2% 34.8% 34.0% 33.9% 31.6% 39.8% Current Ratio 5.70 4.96 4.35 2.38 0.80 3.75 >2.0pp RONA -1.2% -4.2% -0.9% -2.1% 0.4% NA �p, Hutchinson Utilities Commission Cash -Designations Report, Gas 12/31/2025 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest December 2025 November 2025 Position 51' Rr Savings, Checking, Investments varies varies varies 18,558,767.46 21,219,207.57 (2,660,440.11) Total HUC Operating Funds 18,558,767.46 21,219,207.57 (2,660,440.11) Debt Restricted Requirements Bond Covenants - sinking fund 182,000.00 2,081,500.00 (1,899,500.00) Debt Restricted Requirements Bond Covenants -1 year Max. P & 1 2,072,000.00 2,072,000.00 Total Restricted Funds 2,254,000.00 4,153,500.00 (1,899,500.00) Excess Reserves Less Restrictions, Gas 16,721,090.57 14,430,316.15 2,290,774.42 1 1 JJJ1 111 1 11 J J Operating Reserve Min 60 days of 2026 Operating Bud. 2,010,874.67 1,963,816.00 47,058.67 Rate Stabalization Funds $200K-$600K 615,294.19 615,294.19 - PILOT Funds Charter (Formula Only) 596,824.00 596,824.00 Catastrophic Funds Risk Mitigation Amount 200,000.00 200,000.00 Capital Reserves 5 Year CIP (2025-2029 Fleet & Infrastructure Maintenance) 700,000.00 700,000.00 - Total Designated Funds 4,122,992.86 4,075,934.19 47,058.67 YE YE YE YE YTD HUC 2021 2022 2023 2024 2025 AGA Ratio Target Debt to Asset 28.8% 26.5% 21.0% 15.5% 10.6% 35%-50% Current Ratio 4.79 4.06 4.61 5.08 5.18 1.0-3.0 RONA 2.9% 3.0% 6.2% 9.1% 7.0% 2%-5% Notes/Graphs: ELECTRIC DIVISION Operating Revenue December 2025 CLASS AMOUNT KWH /KWH Street Lights 30,304.10 488 $62.0986 Electric Residential Service $547,664.29 4,822,961 $0.1136 All Electric Residential Service $36,253.40 352,324 $0.1029 Electric Small General Service $174,971.57 1,600,755 $0.1093 Electric Large General Service $646,151.24 7,291,610 $0.0886 Electric Large Industrial Service $578,202.95 7,381,000 $0.0783 Total $2,013,547.55 21,449,138 $0.0939 Power Adjustment $0.00000 Rate Without Power Adjustment $0.09388 Electric Division Year -to -Date ® 2025 $ Amount ❑ 2024 $ Amount ® 2025 KWH110 ❑ 2024 KWH110 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 Residential All Elec. Resid. Small Gen. Srv. Large Gen. Srv. Large Industrial Sales For Resale Total NOTE: This graph includes sales for resale (capacity and energy sales) but excludes street lights and security lights NATURAL GAS DIVISION Operating Revenue December 2025 CLASS AMOUNT MCF /MCF Residential $559,049.76 79,002 $7.0764 Commercial $386,972.18 56,041 $6.9051 Large Industrial $27,992.67 3,910 $7.1600 Large Industrial Contracts $602,749.45 91,440 $6.5917 Total $1,576,764.06 230,393 $6.8438 Fuel Adjustment-$1.28027 Rate Without Fuel Adjustment $8.12406 Natural Gas Division Year -to -Date ❑ 2025 $ Amount ❑ 2024 $ Amount m 2025 MCF ❑ 2024 MCF 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 Gas Residential Gas Commercial Large Industrial Large Industrial Total Contracts 13.0 a N N u') N N O O N N I III U w Oo dip, O z ,,,,, w W "' W a Q O W LA Q LU LL z 0 0 0 0 0 vi O vi O vi M M N L C� C Ln N N N O N M N O N N N O N r-I N O N O N O N Ol r-I HEM iiiiiiiiiiiiiiiiiiiiiillillillillillillilliillillillillillillilliilillill"lllillillillillillillilliillillillimm O N 00 O N 5 O N Z 0 N Ln r-I W W o N Q M r-I O N Z QN ri r-I O N O r-I O N Ol O O N 00 O O N n O O N O O N O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O I!) O Ln O Ln O Ln O Ln O Ln O Ln O Ln 00 Il n l0 l0 un un R* R* M M N N r-I r-I Ln N O N N O N M N O N .. N N O N N O N .. O N O N r-I O N 00 r-I O N r-I O N r-I N Ln O N 5 r-I O r-I O Q N O" o J N O N W O H o N O O N J 00 Q o 0 z O N Z kD O Q O N Ln O O N O O N M O O N .. N O O N O O N .. O O O N Ql Ql r-I 00 Ql Ql r-I O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O U) R* M N r-I O Q) 00 I, l0 U ) M M M M M M N N N N N Load Duration Curve: Analysis of 25MW Base Load Contract 2017 2018 2019 2020 2021 2022 2023 2024 2025 290586 292490 283707 281503 292952 283785 272502 268360 274056 219000 219000 219000 219600 219000 219000 219000 219600 219000 75.4% 74.9% 77.2% 78.0% 74.8% 77.2% 80.4% 81.8% 79.9% 302 346 588 540 362 570 1062 1083 965 3.4% 3.9% 6.7% 6.1% 4.1% 6.5% 12.1% 12.3% 11.0% 560 650 1337 1156 929 1361 2411 2357 2124 0.3% 0.3% 0.6% 0.5% 0.4% 0.6% 1.1 % 1.1 % 1.0% SOURCE MWh MRES 219,000 80% MISO 26,537 10% HUC GENERATION 28,519 10% Total system load (MWh) Total base load energy purchased (MWh) % of system load provided by base load contract Number of hours system load was less than 25 MW Percentage of time system load was less than 25 MW Base load MWh resold into MISO (system load was less than 25 MW). % of base load energy resold (system load was less than 25 MW). $/MMBTU O O O O O O O O O O O O ui 0 ui 0 ui o 0 0 M M -b� N iA- N iA- .--i iA- .--i iA- Ln iA- O iA- o....................................................u.......................................................u.......................................................di.......................................................u.......................................................di.......................................................u....................................................... 9ZOZ/T/t ���������� SZOZ/T/ZT SZOZ/T/8 SZOZ/T/t - - � ..�..���� tZOZ/T/ZT > ,.,.,.,��....�..., �,,.,", tZOZ/T/t £ZOZ/T/ZT 'E ZZOZ/T/ZT ,",..„M,�.„M,�.",,,� ���... ............ 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M M — — M N � M N N N M M — V'V'M W N M N M V' M M M V1 z Z W a a _ (n (n O _ _ -6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 '6 O y O ~ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0~ W Y 3 3 Y Y m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m y z z O U U=0 0 0 mooO O C C C C C C c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c O �LLLLLLLLLLLLLL 77LLUU U U U UUU 2H 222222 222 F N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N U U U U U U UUU U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N O 00 O O O O O O 00 O O O O O O 00 N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N 01 01 01 01 01 01 01 01 01 01 01 01 01 01 01 01 01 01 01 > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N 3: 3: 3: 3: 3: 3: 3: 3: 3: 3: 3:3: UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU M � a N a a v+i 0 0 0 0 0 0 0 I t�D N N d a O V N Cl) N O N c CO N V OO N a IUIUIU IUIUIUIUIUIUIUIUIU a J; N CI R Cl) O O D co CO o) W� M r N M W> Co M O O M o 2' +� V t o V V o r m N o co o V N V G W V N to .': r N M R O N g F � N V co t + r eel J � N M M . s N m a o O o O o O o O o O o O o O o O o o O O o o O O o o O O o o O O o O o O o O N o Of N o 00 N 0 I� N 0 b N 0 o Vf a N N 0 0 M N N N 0 eti N M O Lo n M O c0 Lo r M y N N I,- O O O CO V N 00 C C R CO Ln O CO r C y co cti 0 0 0 0 O a) CO Lo 0 O o m ";c O O V rn Lo O F N V O W r E CO r Lo O O C N N N 7 CO V O o)wG N CO O CO N !!lJlC1!!114, W M F M N M CO 69 W l3 l Uhl/ C r V I� O U�IIUUU O o F �2 �2 N V O Lo r N COO r M M. N 0'N r N N co V N LL.M R co �oN � O N N co c0 r O. F J O -6 Q IIIIIIIIIIII III N m W 0 0 c a - 0 n a) wU O C) O D C U CD � Work Order Description 12204 Cooling Tower Repairs 12402 Plant 1 Combustible Gas Detection System 12403 SWOTS Computer Upgrade U5 12404 Plant 1 Side Stream Filter 12501 Tuck Pointing Phase III 12502 Rubber Roof Repair West Portion of Plant 1 12503 Plant 1 Pump Room Ventilation 12504 Plant 1 Control Panel Upgrade 12505 Unit 1 CO2 System Update Code Compliance 12506 Cooling Tower Recirc and Chem Injection 12507 Plant 1 North Ground Fans Electric Production Total Total Materials Labor Budgeted Actual Difference $ 723,509.18 $ 723,509.18 $ - 46,384.67 $ 46,384.67 300,000.00 $ 300,000.00 567,841.74 $ 267,841.74 30,600.00 $ 30,600.00 40,000.00 $ 40,000.00 103,506.51 $ 63,506.51 42,000.00 $ 42,000.00 - $ (42,000.00) 30,000.00 5,000.00 $ 35,000.00 $ (35,000.00) 80,000.00 20,000.00 $ 100,000.00 $ (100,000.00) 20,000.00 $ 20,000.00 $ (20,000.00) 130,000.00 $ 130,000.00 $ (130,000.00) 50,000.00 $ 50,000.00 $ - $ 50,000.00 $ 692,000.00 $ 25,000.00 $ 717,000.00 $ 1,471,842.10 $ 754,842.10 Work Order Description, 22301 Hutch Sub Transformer Upgrade Engineering 22401 Hutch Substation Transformer 22402 McLeod Sub Relay Replacement 22405 3M Sub SCADA Phase 2 22406 HTI Sub SCADA 22501 Pole Repair and Replacement 22502 Station Equipment 22503 Plant 1 Sub Circuit Breakers 22504 Plant 1 Sub Engineering for Willmar Line 22505 Right of Way Clearing 22506 Install Duct 22507 Ravenwood Circle 22508 Edmonton and Sherwood 22509 New Developments 22510 Ravenwood Circle 22511 Edmonton and Sherwood 22512 Transformer Replacements 22513 Transformer New Developments 22514 Meters 22515 Meter Testing Equipment 22516 Security Lights 22517 LED Street Light Conversion 22518 Reconductor Feeder 16 22519 Reconductor Feeder 16 Transformers 22520 Elk Ridge Development 22521 Elk Ridge Development Transformers 22522 Data Center Electric Distribution Total Total Materials, Labor Bud eted Actual Difference 7,573,528.69 7,573,528.69 -- 1,566,368.65 1,566,368.65 150,000.00 150,000.00 15,328.00 (134,672.00) - _ 878.35 878.35 w 141,996.60 141,996.60 15,000.00 - 15,000.00 - (15,000.00) 10,000.00 - 10,000.00 - (10,000.00) 110,000.00 - 110,000.00 - (110,000.00) 75,000.00 - 75,000.00 36,914.23 (38,085.77) 18,000.00 65,000.00 83,000.00 76,450.23 (6,549.77) - - - 3,729.65 3,729.65 60,000.00 15,000.00 75,000.00 82,901.42 7,901.42 - - - 1,160.28 1,160.28 50,000.00 15,000.00 65,000.00 2,512.58 (62,487.42) 60,000.00 15,000.00 75,000.00 977.52 (74,022.48) 36,000.00 - 36,000.00 62,745.59 26,745.59 30,000.00 - 30,000.00 - (30,000.00) - - - 992.75 992.75 175,000.00 35,000.00 210,000.00 19,123.50 (190,876.50) - - - 22,878.20 22,878.20 34,475.97 32,254.91 - - - 14,099.68 14,099.68 $ 789,000.00 $ 145,000.00 $ 934,000.00 $ 9,689,316.80 8,755,316.80 Administrative Work Order Description 52303 Replace 226 2012 Dodge RAM 1500 52501 Replace 451 Welding Truck 52502 Genie AWP 25S DC Manual Lift Total Total Bud eted Actual Difference 57,374.57 (57,374.57) 11,102.00 (11,102.00) $ - $ 68,476.57 $ 68,476.57 0 Work Order Descritwion 62501 Transmitter Calibration Equipment 62502 Misc Developments & System Improvements 62503 City Projects 62504 Improvements to Regulator Stations 62505 Service Lines 62506 Meters, AMI, and All Fittings 62507 Residential Regulators 62508 Industrial Metering and Regulation 62509 Edmonton Development 62510 School Road River Crossing 62511 DRS #5 Upgrades Natural Gas Total Total Materials Labor B..... dggte.d Actual Difference 8,500.00 8,500.00 - 8,500.00 22,951.79 14,451.79 25,000.00 5,000.00 30,000.00 38,154.17 8,154.17 7,000.00 2,000.00 9,000.00 22,497.88 13,497.88 20,000.00 3,500.00 23,500.00 3,049.82 (20,450.18) 57,000.00 15,000.00 72,000.00 57,923.50 (14,076.50) 250,000.00 10,000.00 260,000.00 102,237.28 (157,762.72) 25,000.00 3,500.00 28,500.00 490.90 (28,009.10) - - - 5,608.53 5,608.53 297,472.84 - - - 32,915.03 32,915.03 $ 392,500.00 $ 39,000.00 $ 431,500.00 $ 583,301.74 $ 151,801.74 HUTCHINSON UTILITIES COMMISSION 9T, Board Action Form iiiiiiiiiiiiiiiiiiiiiillillillillillillilliillillillillillillilliilliillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliilllI Agenda Item: Review Policies Presenter: Angie Radke Agenda Item Type: Time Requested (Minutes): 5 Review Policies Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: 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: i. Section 1 of Exempt Handbook ii. Section 1 of Non -Exempt Handbook BOARD ACTION REQUESTED: None Fiscal Impact: Included in current budget: Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: EXEMPT SECTION 1 - INTRODUCTION WELCOME TO HUTCHINSON UTILITIES COMMISSION WHAT IS HUTCHINSON UTILITIES COMMISSION? The Municipal Electric Light Plant was established in 1935 as a result of a special election authorizing the establishment of a new generating plant and distribution system through a bond issue of $250,000 to pay for the construction. The vote was 1,187 for and 128 against. Contracts were awarded for the construction of a new power plant building at the intersection of State Highways 7 and 15. The contract included three (3) 625 hp 430 kw diesel generating units, switchboard, a complete distribution system and other auxiliary equipment. On November 28 1936, construction was completed and by January of 1937, over 600 customers were connected. By the end of March, the system was serving 1,171. The City Charter was amended in 1935 to create a Utilities Commission to manage and operate the system. In 1960, the City constructed a natural gas distribution system, buying natural gas from Northern Natural Gas Company, and selling it to the citizens of Hutchinson and the surrounding rural area. Natural gas was also used in firing the dual generating units of the light plant. In 2003, in order to control natural gas transportation costs, Hutchinson Utilities constructed a high pressure natural gas transmission pipeline to serve this community. This transmission line is interconnected with Northern Border Pipeline near Trimont, Minnesota which allows Hutchinson Utilities to transport natural gas to its customers in addition to other municipal utilities and industrial end users located along the pipeline corridor. Since 1936, the Hutchinson Utilities Commission, consisting of three (3) qualified voters of the City of Hutchinson, has operated the Municipal Electric Plant and the Natural Gas Distribution System. It was established by Section 17 of the City Charter that the Commissioners be appointed by the City Council, one (1) every two years, for a six year term. No Commissioner can serve more than two (2) successive terms. The Commission elects a President, Vice President, and Secretary. In November of 1987, the City Charter was amended to expand the Utilities Commission to a five (5)-member board. Each Commissioner's term will be five (5) years and no Commissioner can serve more than two (2) successive terms. The City Charter gives the Commission full, absolute and exclusive control of and power over the Electric and Natural Gas Operations of Hutchinson Utilities. The Commission hires a General Manager to manage the day-to-day operation of the Utilities. The Hutchinson Utilities Commission has, for many years, made substantial cash contributions to the General Fund of the City of Hutchinson from surplus earnings of both the electric and gas divisions of the Utilities. Hutchinson Utilities Commission has provided and will continue to provide to its customers, electricity and natural gas at the lowest possible cost. PURPOSE OF THIS HANDBOOK The contents of this Employee Handbook are for information only. The Hutchinson Utilities Commission does not intend to create a contract by the publication and issuance of this Handbook and under no circumstances is it to be construed as a contract of employment. Employees are considered to be "at will". The Commission reserves the right to change the policies and procedures in this Handbook at any time without notice. Non -Exempt SECTION I - INTRODUCTION WELCOME TO HUTCHINSON UTILITIES COMMISSION WHAT IS HUTCHINSON UTILITIES COMMISSION? The Municipal Electric Light Plant was established in 1935 as a result of a special election authorizing the establishment of a new generating plant and distribution system through a bond issue of $250,000 to pay for the construction. The vote was 1,187 for and 128 against. Contracts were awarded for the construction of a new power plant building at the intersection of State Highways 7 and 15. The contract included three (3) 625 hp 430 kw diesel generating units, switchboard, a complete distribution system and other auxiliary equipment. On November 28 1936, construction was completed and by January of 1937, over 600 customers were connected. By the end of March, the system was serving 1,171. The City Charter was amended in 1935 to create a Utilities Commission to manage and operate the system. In 1960, the City constructed a natural gas distribution system, buying natural gas from Northern Natural Gas Company, and selling it to the citizens of Hutchinson and the surrounding rural area. Natural gas was also used in firing the dual generating units of the light plant. In 2003, in order to control natural gas transportation costs, Hutchinson Utilities constructed a high pressure natural gas transmission pipeline to serve this community. This transmission line is interconnected with Northern Border Pipeline near Trimont, Minnesota which allows Hutchinson Utilities to transport natural gas to its customers in addition to other municipal utilities and industrial end users located along the pipeline corridor. Since 1936, the Hutchinson Utilities Commission, consisting of three (3) qualified voters of the City of Hutchinson, has operated the Municipal Electric Plant and the Natural Gas Distribution System. It was established by Section 17 of the City Charter that the Commissioners be appointed by the City Council, one (1) every two years, for a six year term. No Commissioner can serve more than two (2) successive terms. The Commission elects a President, Vice President, and Secretary. In November of 1987, the City Charter was amended to expand the Utilities Commission to a five (5)-member board. Each Commissioner's term will be five (5) years and no Commissioner can serve more than two (2) successive terms. The City Charter gives the Commission full, absolute and exclusive control of and power over the Electric and Natural Gas Operations of Hutchinson Utilities. The Commission hires a General Manager to manage the day-to-day operation of the Utilities. The Hutchinson Utilities Commission has, for many years, made substantial cash contributions to the General Fund of the City of Hutchinson from surplus earnings of both the electric and gas divisions of the Utilities. Hutchinson Utilities Commission has provided and will continue to provide to its customers, electricity and natural gas at the lowest possible cost. PURPOSE OF THIS HANDBOOK The contents of this Employee Handbook are for information only. The Hutchinson Utilities Commission does not intend to create a contract by the publication and issuance of this Handbook and under no circumstances is it to be construed as a contract of employment. Employees are considered to be "at will". The Commission reserves the right to change the policies and procedures in this Handbook at any time without notice. HUTCHINSON UTILITIES COMMISSION Board Action Form �rre tit' 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. Introduction ii. Definitions BOARD ACTION REQUESTED: Approve Policy Changes Fiscal Impact: Included in current budget: Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: EXEMPT SECTION 1 - INTRODUCTION We are pleased to welcome you to the Hutchinson Utilities Commission. This Handbook has been prepared to familiarize you with our operating policies and procedures as well as your responsibilities as an employee. We hope you will find your work interesting and rewarding. When you become an employee of Hutchinson Utilities Commission, you represent Hutchinson Utilities to our customers and the general public. We should strive to show the best image possible. Should you have any questions regarding policies or procedures, kindly talk with your D�reeto r� Manager or Supervisor. DEFINITIONS In this Handbook, the following terms shall have the meanings as listed below: "Commission" means the Hutchinson Utilities Commission. "Essential employees" means power plant operators, system controllers, line workers, and natural gas service workers. "Exempt employees" means executive, professional and administrative employees as those terms are defined in the Fair Labor Standards Act ("FLSA") and who are not subject to the minimum wage and overtime provisions of the FLSA. "General Manager" means the Chief Executive of Hutchinson Utilities who is appointed by the Commission. "Immediate family" means spouse, significant other, parent, stepparent, guardian, child, stepchild, sibling, grandparent, grandchild, any in-law, and a significant others parents or grandparents. A significant other shall mean an employee's domestic partner. "Non-exempt employees" are employees who are generally paid hourly and are subject to the minimum wage and overtime provisions of the FLSA. "Regular full-time employee" means an employee who has been appointed to an authorized, budgeted position who is not temporary or probationary and who is regularly scheduled to work 40 hours during a work week. Generally, regular full-time employees are eligible for Utility benefit programs subject to the terms, conditions and limitations of each benefit program. "Seniority" means length of consecutive employment as a regular full-time employee with Hutchinson Utilities. "Staff personnel" means Natural Gas D�rec;tor Matra cs, Production Manager, Electric Transmission/Distribution Manager, Engineering Services Manager, Financial Manager, Accountant, Administrative/[I P, Coordinator, Purchasing / Inventory Agent, GoR+, its N,sten i ,Nfia�lyst Energy Conservation Administrator, and Accounts Supervisor. "Temporary employee" means an employee who may work up to 40 hours per week but for a maximum of 24 weeks per year, even if not consecutive weeks. Temporary positions are eligible for legally mandated benefits such as Social Security but are ineligible for Utility benefit programs. "Utility" and "Utilities" means Hutchinson Utilities. "Working days" means Monday through Friday. Non -Exempt SECTION 1 - INTRODUCTION We are pleased to welcome you to the Hutchinson Utilities Commission. This Handbook has been prepared to familiarize you with our operating policies and procedures as well as your responsibilities as an employee. We hope you will find your work interesting and rewarding. When you become an employee of Hutchinson Utilities Commission, you represent Hutchinson Utilities to our customers and the general public. We should strive to show the best image possible. Should you have any questions regarding policies or procedures, kindly talk with your D� eeto r. or Manager. DEFINITIONS In this Handbook, the following terms shall have the meanings as listed below: "Commission" means the Hutchinson Utilities Commission. "Essential employees" means power plant operators, system controllers, line workers, and natural gas service workers. "Exempt employees" means executive, professional and administrative employees as those terms are defined in the Fair Labor Standards Act ("FLSA") and who are not subject to the minimum wage and overtime provisions of the FLSA. "General Manager" means the Chief Executive of Hutchinson Utilities who is appointed by the Commission. "Immediate family" means spouse, significant other, parent, stepparent, guardian, child, stepchild, sibling, grandparent, grandchild, any in-law, and a significant others parents and grandparents. A significant other shall mean an employee's domestic partner. "Non-exempt employees" are employees who are generally paid hourly and are subject to the minimum wage and overtime provisions of the FLSA. "Regular full-time employee" means an employee who has been appointed to an authorized, budgeted position who is not temporary or probationary and who is regularly scheduled to work 40 hours during a work week. Generally, regular full-time employees are eligible for Utility benefit programs subject to the terms, conditions and limitations of each benefit program. "Seniority" means length of consecutive employment as a regular full-time employee with Hutchinson Utilities. "Staff personnel" means Natural Gas 1 ireetor Manger, Production Manager, Electric Transmission/Distribution Manager, Engineering Services Manager, Financial Manager, Accountant, Administrative/[ I P Coordinator, Purchasing / Inventory Agent, GoR+, it gN, ste �s ,g.fi.ap..yst, Energy Conservation Administrator, and Accounts Supervisor. "Temporary employee" means an employee who may work up to 40 hours per week but for a maximum of 24 weeks per year, even if not consecutive weeks. Temporary positions are eligible for legally mandated benefits such as Social Security but are ineligible for Utility benefit programs. "Utility" and "Utilities" means Hutchinson Utilities. "Working days" means Monday through Friday. HUTCHINSON UTILITIES COMMISSION ^I'�xP61Tti'°" Board Action Form Agenda Item: Review Annual Solar Production Presenter: Dave Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: HUC installed a 625KW AC solar Array on November 2nd 2021. We are able to calculate the cost savings by comparing the actual MISO hourly LMP with the hourly production of the array. For the year 2025 The capacity factor 16.4% The array generated 901,517 Kwh Cost savings $38,588.20 The array was anticipated to operate at a 14% capacity factor. For 2025 the array operated at a capacity factor of 16.4%. Attachments: 2024 - 2025 total output and savings Monthly Solar Production Graph BOARD ACTION REQUESTED: None Fiscal Impact: None Included in current budget: Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: Ln w In w a) w 00 9 9 p 11:1 O'd, a cn ui ui cwn r,4 -0 E 00 Lr) H� E a) E E E Lr) t� �14 0 E c; 0 0) 00 0) 6 0) 0) �14 0) C H) 0) u 0) u 0) r4 u 0) u 0) 0) cn u 0) to V Ln V Ln V Ln V� r, w .1 to C to .1 to cn 'n 0 a) to 01 C S, > "t cn In '0 S, > �Z C r, y , , cn M w ZI au M w ZI E E E E cy) E E 0 0) > -1 0 0) > in 2 m 0) > to > 0) > 0 0) > 2 m 0) > to > E 0 z u 0 z ��c 0 z 0 z u 0 z ��c 0 z W au 0 Ln > 5.1 (0 76 , Ln > 5.7, < m u Ln F6F6 r4 w C , , 0 w a, (Yi -61 r, r4 C� r, cn -0 C -0 Lr� 0 0 0 0 r, 0 01 0--'."0' 01 0 0 a) u 0 w a) m 00 00 , Ln cn C) w Lr C) - - -c% - w W W W WLn v V V V V V to to Ln to bA .c a) 00 cn tio C: 0 Lf� rq cn cn 00 w cn w q U C-4 cn r4 oc� cc: oc� Ln 00 00 'Y� cn Ln Ln "m Ln -C Ln 0 0 cn C-4 c ct -he 1-4 00 Ln N c r, -he Ln w w -C r4 0 n d Ln q w , 1 w 00 0 Ln d m tio — A r,,� m — A Lr� A —A c 0) 21 -C C C-4 0) c cn 00 3� A -C c c tio Ln 0 - Ln tio Ln "M 0 Ln c 0 V) Lq tio m cn C > m Lq 0 V) r, Ip tio rIj -1 V) a) C w V) 21 C r4 oc� -C oil t� 0 oil C 0) r,,� -C 0) CO)o 0 C 0 u c :3 I Ln c 0 c :3 r, r, V) c 0 c U :3 1 -1 c c 0 L/) c 21 —" — — 2 c Ln Ln r4 -C ct r4 c 0 Ln r4 C C rI4 c 0 to r4 C C r4 5; r4 -a r4 0 00 Ln C a) r4 0 r4 a) Ln Lq Ln - 1 V) 06 t6 cn C V) r� cn r4 c; a) a) Ln C Ln m r4 m m m m r4 C a) r4 C C r4 r4 .Ln to a) r4 r4 00 W -1 ct NO U� C) --d cn C Ln OaO) C r4 At C I�t r4 Ln cn W -Cl ID m Lq Ol 00 r., Ln C-4 cn 0 w r, cn C-4 00 rl� Ii w r� rq w w cn 00 a) cn 00 C-4 ni —wi Lr� vl C-4 0) 0) 0) 0) Ln rq 00 Ln 00 w Ii cn a, a)ct c Lr� cl Lr� c rq 91 Lan, m -1 m -1 —m cn .Ln Ln HUTCHINSON UTILITIES COMMISSION ^I'�xP61Tti'°" Board Action Form Agenda Item: Cogeneration and Small Power Production annual Tariff Filing Presenter: Dave Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Annually Municipal Utilities shall file for review and approval, a cogeneration and small power production tariff with the governing body. Schedule 1: For facilities of 40KW or less "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. Schedule 4: For facilities 40KW - 100KW HUC estimated the avoided energy cost by first calculating the total cost for the previous year assuming HUC purchased all energy to supply its member load from the MISO market on an hourly basis, at the real-time LMP. The total cost was then divided by the total energy requirement resulting in an historic load -weighted $/MWh costs. Attachements: Schedule 1 Schedule 4 BOARD ACTION REQUESTED: Approve Cogeneration and Small Power Production Tariff Fiscal Impact: NA Included in current budget: Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: e « m \ �\\/ — 2006 § � a / % 2 2 _ T 0 # g r-4 r = \ { / _ 0 IA Lf) a) m G 2 - (A z 3 $ \%Gq$ % -V\2 � § IA c u 3 z S ; \ a)(A » \ ¢ % z#2® § \40S =e § ; m 5 § \ ^ m (Af 7 r 2 m 5 )} to a I [ � / g j ) > c a) a) m a)_ » z m [ \ > / 2\\\ C o § �\\} .2 �k \.kme» � MOU ){ 7 u Q : * � © J 3 2 § 6 5 J> o * \ \ . ) 2 o = / -- 8 § IA » ®e Q) Q) e - ; Q % e e §f :. 2 " e S m K \ A j \ \ c 0 V) V E EY U o V v Z Y Z v � s v 0 3 o Y v 0 � V U O x c un. `o v 0 v L � m � O M O � w L Q E c E V O V d T n d O � i0 cr cr U1 Y cl: N O N O N U1 W Y � O � O O G Vi N O � _ N W v W N L G � o T 3 0- Q M O N N is T c N N O c ' w` V y- W G 4� O O ~ S 5 o OV E U 0) N c 'a N o O O L v 0 0 Ln V y M E 00 E v OC a ^ O M N V 0 0 Lu .3 CA yLj i x c t u U 00 CC= y o S 0 V G v x c HUTCHINSON UTILITIES COMMISSION ^I'�xP61Tti'°" Board Action Form Agenda Item: Review 2025 Distributed Energy Resources Co -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 Co -generation policies to review annually all Net Energy billed qualifying facilities. HUC has 21 active Solar DER Co -generation facilities on our system. 13 - Commercial 7 - Residential 1 - Utility owned Attached: HUC Co -generation Policy HUC Co -generation Rules HUC 2025 Active Co -generation usage Solar systems connected to HUC 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. 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O UI UI UI UI UI UI UI UI UI UI UI UI UI UI UI UI UI UI UI UI UI > > > > > > > > > > > > > > > > > > > > > 83 N N N N N N N N N N N N N N N N N N N N N HUTCHINSON UTILITIES COMMISSION Board Action Form �'YIk1iM1'k� Agenda Item: Approval of the 2026 Pay Equity Report Presenter: Angie Radke Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: The required Pay Equity Report for 2026 (2025 data) has been prepared for submission to the Minnesota Management and Budget (MMB) Department. The attached report must be approved by the Hutchinson Utilities Commission and submitted to MMB by January 31, 2026. The information to be submitted indicates that HUC continues to be in compliance in regards to the pay equity requirements. The T-test Results value of Degrees of Freedom of 44 with a Value of T of -4.299 included in Section 11 of the Compliance Report is below the Value of T on the T-Test Table of 1.684 that is required to be in compliance. It is requested that the Commission approve the enclosed report at this meeting. The report will be sent to MMB before the deadline of January 31, 2026, however, HUC generally does not receive confirmation from MMB that HUC is in compliant until later in the year. BOARD ACTION REQUESTED: Approval of the 2026 Pay Equity Report Fiscal Impact: none Included in current budget: Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: 11 MANAGEMENT AND BUDGET Jurisdiction: Hutchinson Utilities 225 Michigan Street SE Hutchinson, MN 55350 Contact: Jeremy Carter Compliance Report Phone: (320) 234-0505 Report Year: 2026 Case: 2 - 2025 Data (Shared (Jur and MMB)) E-Mail: jcarter@hutch insommn. gov The statistical analysis, salary range and exceptional service pay test results are shown below. Part I is general information from your pay equity report data. Parts 11, III and IV give you the test results. For more detail on each test, refer to the Guide to Pay Equity Compliance and Computer Reports. I. GENERAL JOB CLASS INFORMATION #Job Classes # Employees Avg. Max Monthly Pay per employee II. STATISTICAL ANALYSIS TEST A. Underpayment Ratio = 0 Male Classes Female Classes 23 3 43 3 9589.97 9852.60 Balanced Classes 2 6 Male Classes Female Classes a. # At or above Predicted Pay 13 3 b. # Below Predicted Pay 10 0 c.TOTAL 23 3 d. % Below Predicted Pay (b divided by c = d) 43.48 0.00 *(Result is % of male classes below predicted pay divided by % of female classes below predicted pay.) B. T-test Results Degrees of Freedom DF = 44 Value of T = -4.299 a. Avg. dill. in pay from predicted pay for male jobs = -24 b. Avg. diff. in pay from predicted pay for female jobs = 688 III. SALARY RANGE TEST = 0.00 (Result is A divided by B) A. Avg. # of years to max salary for male jobs = 0.00 B. Avg. # of years to max salary for female jobs = 0.00 IV. EXCEPTIONAL SERVICE PAY TEST = 0.00 (Result is B divided by A) A. % of male classes receiving ESP = 0.00 B. % of female classes receiving ESP = 0.00 *(If 20% or less, test result will be 0.00) All Job Classes 28 52 9421.44 Page 1 of 1 1/15/2026 1:33:53 PM T H J M N N V mo O 1 fu T N a N U N 16 C O i/ N U X W O O O O O O O O O O O O O O O O O O o O O o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O D T f � � Ln Nr� � Ln r4 i-I N N N N c-i N i-i N m N N N T L m X O O O O O O O O O O O O O O O O O O O O O O O O O O O m O O O O O O O O O O O O O O O O O O O O O O O O O O O 2 O O O O O O O O O O O O O O O O O O O O O O O O O O O O r+ L T T N CO w � w i, � r, � In r, O -Zm N N -Z -Z In -Z � -Z N c-i c-i CO CO O vi o i, w I, I, N r-i w w i, m r-i -zt m m r-i r-i m r-i i, r-i '-q i- - 0 0 u� 0 m N m N w i, m m r4 O N m -�o i-� i-� m m Ln m O m w O p r-i r-i 0 C -zt N CO N O i, -zt CO Ol l0 N -zt ul m m -4 -4 m -4 m -4 N n ^ m m -D G m N i-i N ul ul ul i-i O ul w i-i O l0 l0 i-i i-i i, c-i m c-I CO -Z -zt -zt m Cx -ZCO CO CO CO CO CO CO Ol CO CO Ol Ol Ol Ol Ol Ol Ol Ol m m 00 M M 'zt i-I Ln G 0 w w -zt w i, w i, -zt -zt n O l0 m i, n l0 l0 M l0 -zt l0 M -Z ul ul I� C i O I� co I� I� u, r i co I� I� u, r i 1�1: rl� rl� r i r i m r i Il r i r i i-i i-i O G 16 Ol N Ol N CO m ui Ol -zi O N m l0 CO CO m m ui m O m r-i -4 -4 CO C m zt N co N O Ln -zt co m-Z N -zt Ln m m�-zt m-zt m-zt N N N m m i, m N r-i N un m un r-i i, un co r-i O r-i r-i r-i r-i i, c-i of r-i O r-I r-i r, r, m l0 00 00 00 00 l0 00 00 l0 00 00 a) a) i, n iT iT iT iT iT iT 00 O O O O c-i m o o m O m w O m m m O m 0 0 M M O W 0 0 M O M O M O O O r-I-i N N N N N N N N N N N N m m m rmn m m rrn r^n r^n Ln Ln Ln Ln co co V H L 0 m Zm v zE c-i o o o o o o o c-i o c-i o o o c-i o o o o o o c-i o o o o o v U. 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V C cc� O_ ? C C (9 a Q W G Z 3 d U O u G V7 Z W Q W G O V7 W Q W d LL W Z C Z O i-i N m vl O l0 r• al O i-I N m a) vl l0 r• a i-i m Ln l0 r• N CO i-I i-i i-i i-i i-i i-i i-i i-i i-i N N N N al N N N N N (, ti N N oG 111/11 L Minnesota Pay Equity Management System - Hutchinson Utilities(26-No Submission) Home Utilities Go To Log Out Pay Equity Implementation Form n'fi) Iir II i i i �.', n o III il' III "',il'i� II"il' V �� �;; III �', IL."pro 4 il' II �ro III d'; '�;: ,," ro II ,V �� III"� II'� ' f"',�I'� V ;� II„V III �', n ' ��"�;;� II V V �, II V;� �'� 9�ro 114 III i';�� III 9:',� ,,"�ro II �V �� III"1 II'��: �" i..11h li p: u m 1:Fy" be I4-� II-n In il:�r i ::::Ind s III i:3 u-�ii,:d w u l h III II II'.)od'y" �f tii' � it tl" lu I111: D::flN'1111' oII„V II iniaed to coII iia '.)ad< to tNls c4';:Iim"-il,::A,:: I:i„:I". III 111:�d 1::� a�ro "Ii" II w i � " III fi")"f"'n ,i'� i t n o III , th it", III dV <' S4�f l III 1:31ind s II.��V bm't " Part A: Jurisdiction Identification Jurisdiction: Hutchinson Utilities 225 Michigan Street SE Hutchinson Contact: Name Title Angie Radke Administrative/HR Cc Jeremy Carter GM Part B: Official Verification 1. The job evaluation system used measured skill, effort responsibility and working conditions and the same system was used for all classes of employees. The system used was: Other (specify) Describe below if the job evaluation system used is: "The same as last year', "A new system', "A substantially modified system from last year", or another descriptor not listed here: (*less than 240 characters) Safe Job Evaluation System 2. Health Insurance benefits for male and female classes of comparable value have been evaluated and There is no difference v and female classes are not at a disadvantage. Part C: Total Payroll Jurisdiction Type: UTL - Utility Phone Email 320-234-0501 aradke@hutchinsommn.gov 320-234-0505 jcarter@hutchinsommn.gov 3. An official notice has been posted at: 225 Michigan St SE - Main Office (prominent location) (*less than 60 characters) informing employees that the Pay equity Implementation Report has been filed and is available to employees upon request. A copy of the notice has been sent to each exclusive representative, if any, and also to the public library. The report was approved by: Hutchinson Utilities Commission (governing body) (*less than 60 characters) (chief elected official)(*less than 60 characters) President (title) (*less than 60 characters) 0 Checking this box indicates the following: • signature of chief elected official approval by governing body • all information is complete and accurate, and • all employees over which the jurisdiction has final budgetary authority are included $6,239,999.00 is the annual payroll for the calendar year just ended December 31. Save....C.ha.n.......eS..., Sign &Submit Return io Test Results pp 9 9..............................................................................................................0 We have worked to ensure this product is accessible and compliant with the standard WCAG 2.0 level AA. We have tested accessibility using the JAWS software from Freedom Scientific. We found it to work correctly for us. If you find errors in accessibility, please let us know at pay.e%L -L6 state.mn.us so that we can follow up. Thank you. HUTCHINSON UTILITIES COMMISSION ^I'�xP61Tti'°" Board Action Form Agenda Item: Hutchinson Substation - Control Enclosure Change Order #2 Presenter: Dan L. Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Change order issued to Electrical Power Products (EP2) for design modifications to the control enclosure for the Hutchinson Substation project. Original contract price: $1,550,035.00 Change order #1 amount: $19,384.00 (approved Nov 2024) Change order #2 amount: $34,600.33 Attachments: Change Order #2 Jan 2026 BOARD ACTION REQUESTED: Approve Change Order #2 to Electrical Power Products for control enclosure modifications. Fiscal Impact: Included in current budget: Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: - Change Order ENGINEERS JOINT CONTRACT DOCUMENTS COMMITTEE No. Date of Issuance: December 31,, 2025 Effective Date: December 31, 2025 Project: Fumishiniz a Control Enclosure and Control Panels — Hutchinson Substation Owner: Hutchinson Utilities Commission Owner's Contract No.: NA Engineer: DGR Engineering Date of Contract: October 3, 2024 Contractor: Electrical Power Products, Inc. (EP2) Engineer's Project No.: 428507 The Contract Documents are modified as follows upon execution of this Change Order: Description: 24' x 44' Control Enclosure with 18 Panels product and delivery date changes. Attachments (list documents supporting change): EP2 Change Order #2, Tabulation CHANGE IN CONTRACT PRICE: CHANGE IN CONTRACT TIMES: Original Contract Price: $ 1,550 035.00_ [Increase] [Demme] from Previously Approved Change Orders No. 1 to No. 1: $ 19,384.00 Contract Price Prior to this Change Order: $ 1,569,419.00 [Increase] [DeeFease] of this Change Order: $ 34,600.33 Contract Price Incorporating this Change Order: $ 1604,019.33 Engineer Original Contract Times: ❑ Working Days ® Calendar Days Substantial Completion (days or date): October 3,, 2025 Ready for Final Payment (days or date): NA [hrefease] [Demme] from Previously Approved Change Orders No. 1 to No. 1: Substantial Completion (days or date): NA Ready for Final Payment (days or date): NA Contract Times Prior to this Change Order: Substantial Completion (days or date): October 3, 2025 Ready for Final Payment (days or date): NA [Increase] [Demme] of this Change Order: Substantial Completion (days or date): November 19 2025 Ready for Final Payment (days or date): NA Contract Times with all Approved Change Orders: Substantial Completion (days or date): November I , 2025 Ready for Final Payment (days or date): NA Owner (Authorized Signature) Print: Alex Richter, P.E. Print: Print: Ibrahim M . Saleh Title: Project Manager — Title: _ _ Title: Senior P "Man ( er Date: 12-30-2025 Date: Date: 1.2 — 3 0— 2 0 2 5 Approved by Funding Agency (if applicable): By: Date: Print: Title: EJCDC C-941 Change Order Prepared by the Engineers Joint Contract Documents Committee and endorsed by the Construction Specifications Institute. Page 1 of 1 Change Order To: Hutchinson Utilities Commision Hutchinson, IVIN 55350 Attn: Alex Richter Project: 24'X 44' Control Enclosure with 18 Panels Hutchinson Substation Date- 12/19/2025 Job Number- 16081 ChangeOrder #- 2 Customer PO- 428507 We propose making the following changes on the above project: Change order to include added materials plus Admin, engineering, wiring, and testing Original Contract Amount- $1,550,035.00 Current Contract 10/3/2025 Net Change by Previous Change Order- $19,384.00 Delivery Date: Net Change this Change Order: $34,600.33 Revised Contract 11/19/2025 Revised Contract Amount: $1,604,019.33 Delivery Date: This proposal is valid for 30 days. If this proposal is accepted, please sign below and provide a revised purchase order. A change to the scope of work will not be implemented without written approval. Sent By: Mohanad Alqaysi Accepted By: Electrical Power Products, Inc. Hutchinson Utilities Commision Print Name Title: Project Manager Signature: Title: Date: Electrical Power Products, Inc. 4240 Army Post Road w Des Moines, Iowa 50321 Page 1 of 1 (515) 262-8161 m Fax (515) 262-9461 Change Order 2 Hutchinson Utilities Commission DGR 428507 24' X 44' Control Enclosure with 18 Panels Job 16081-Hutchinson Substation BOMAssembly Item Number Quantity StyleNumber Manufacturer Description CO I: PANEL I -RTU PANEL 014CO2 3 EB25B12 GE 12 PT TERMINAL BLOCK $185.93 2: PANEL 2-115/69KVXFMRTI&MOD WSMI 020-0O2 1 EB27B04S GE 4 PT SHORTING TERM BLOCK $58.40 2: PAN EL 2-115/69KV XFMR TI B MOD WSMI 025-0O2 3 PRSlIN04TH AREVA- CANADA PRIMA, SELF RESETAUXIUVIY RELAY $865.35 2: PANEL 2-115/69KVXFMRTI B MOD WSMI 026-0O2 3 PSF3B AREVA- CANADA FRONT CONNECTED SOCKET $718.43 2: PANEL 2-115/69KVXFMRTI B MOD WSMI 014CO2 1 EB25B12 GE 12 PTTERMINAL BLOCK $61.98 3: PANEL 3-115/69KVXFMRTI PROT.&LTC 016-0O2 4 F30A2S MARATHON TWO POLE FUSE BLOCK, 250 VOLT. $39.75 3: PANEL 3-115/69KVXFMRTI PROT.& LTC 02&CO2 10 NON-10 BUSS 10A, 250 VOLT NON-RENEWABLE ONE TIME FUSE $217.13 3: PANEL 3-115/69KVXFMRTI PROT.& LTC 027-0O2 1 EB27B04S GE 4 PT SHORTING TERM BLOCK $58.40 3: PAN EL 3-115/69KV XFMR TI PROT. B LTC 014CO2 1 jEB25B12 GE 12 PT TERMINAL BLOCK $61.98 4: PAN EL 4-115/69KV XFMR 12& MOD WSM2 016-0O2 4 F30A2S MARATHON TWO POLE FUSE BLOCK, 250 VOLT. $39.75 4: PAN EL 4-115/69KV XFMR 12& MOD WSM2 020-0O2 1 EB27B04S GE 4 PT SHORTING TERM BLOCK $58.40 4: PAN EL 4-115/69KV XFMR 12& MOD WSM2 02&CO2 5 NON-10 BUSS 10A, 250 VOLT N ON -RENEWABLE ON E TI ME FUSE $108.56 4: PAN EL 4-115/69KV XFMR 12& MOD WSM2 025-0O2 3 PRSlIN04TH AREVA- CANADA PRIMA, SELF RESETAUXIUVIY RELAY $865.35 4: PANEL 4-115/69KVXFMRT2& MOD WSM2 026-0O2 3 PSF3B AREVA- CANADA FRONT CONNECTED SOCKET $718.43 5: PANEL 5-115/69KVXFMRT2 PROT. B LTC 014CO2 0 EB25B12 GE 12 PTTERMINAL BLOCK $61.98 5: PANEL 5-115/69KVXFMRT2 PROT. B LTC 016-0O2 2 F30A2S MARATHON ITWOPOLE FUSE BLOCK, 250 VOLT. $19.88 5: PANEL 5-115/69KVXFMRT2 PROT.& LTC 02&CO2 5 NON-10 BUSS 10A, 250 VOLT NON-RENEWABLE ONE TIME FUSE $108.56 5: PANEL 5-115/69KVXFMRT2 PROT.& LTC 027-0O2 1 E827804S GE 4 PT SHORTING TERM BLOCK $58.40 6: PAN EL 6- 115KV BGS LINE RLYG& BKR WB3 014CO2-1 1 EB25B12 GE 12 PT TERMINAL BLOCK $61.98 6: PAN EL 6- 115KV BGS LINE RLYG& BKR WB3 016-0O2 2 F30A2S MARATHON TWO POLE FUSE BLOC K, 250 VOLT. $19.88 6: PAN EL 6- 115KV BGS LINE RLYG& BKR WB3 018-0O2 1 EB27B04S GE 4 PT SHORTING TERM BLOCK $58.40 6: PAN EL 6- 115KV BGS LINE RLYG& BKR WB3 02&CO2 10 NON-10 BUSS 10A, 250 VOLT N ON -RENEWABLE ON E TI ME FUSE $217.13 6: PAN EL 6- 115KV BGS LINE RLYG& BKR WB3 030-0O2 3 PRSlIN04TH AREVA- CANADA PRIMA, SELF RESETAUXIUVIY RELAY $865.35 6: PANEL 6- 115KV BGS LINE RLYG& BKRWB3 031-0O2 3 PSF3B AREVA- CANADA FRONT CONNECTED SOCKET $718.43 6: PANEL 6- 115KV BGS LINE RLYG& BKRWB3 032-CO2 2 PERDESC M1RCC SM, DUPLEX LC/ST (OS2)50H $265.00 6: PANEL 6- 115KV BGS LINE RLYG& BKRWB3 014CO2 2 EB25B12 GE 12 PTTERMINALBLOCK $123.95 ]: PANEL ]-115KVBKRWB4 014CO2-1 2 EB25B12 GE 12 PTTERMINALBLOCK $123.95 ]: PANEL ]-115KVBKRWB4 014CO2 1 EB25B12 GE 12 PTTERMINALBLOCK $61.98 8: PANEL 8-115KV3MH LINE RLYG& BKRWB5 014CO2-1 1 EB25B12 GE 12 PTTERMINALBLOCK $61.98 8: PANEL 8-115KV3MH LINE RLYG& BKRWB5 029-0O2 3 PRSlIN04TH AREVA- CANADA PRIMA, SELF RESETAUXIUVIY RELAY $865.35 8: PANEL 8- 115KV 3MH LINE RLYG& BKRWB5 030-0O2 3 PSF3B AREVA- CANADA IFRONTCONNECTEDSOCKET $718.43 8: PANEL 8-115KV3MH LINE RLYG& BKRWB5 014CO2 2 EB25B12 GE 12 PTTERMINAL BLOCK $123.95 9: PANEL 9-115KVFUT. LINE RLYG& BKRWB6 014CO2 1 EB25B12 GE 12 PTTERMINAL BLOCK $61.98 22: PANEL 22- 69W N81& NB3 LINE RLYG 016-0O2 30 NON-5 BUSS 5A, 250 VOLT NON-RENEWABLE ONE TIME FUSE $684.00 22: PANEL 22- 69W N81& NB3 LINE RLYG 016-0O2 4 NON-10 BUSS 10A, 250 VOLT NON-RENEWABLE ONETIME FUSE $84.55 22: PANEL 22- 69W N81& NB3 LINE RLYG 018-0O2 4 F30AIS MARATHON FUSE BLOCK, I POLE $40.00 22: PANEL 22- 69W N81& NB3 LINE RLYG 014CO2 2 EB25B12 GE 12 PT TERMINAL BLOCK $123.95 23: PANEL 23-69W NB]LINE RLYG 016-0O2 4 NON-5 BUSS 5A, 250 VOLT NON-RENEWABLE ONETIME FUSE $88.40 23: PANEL 23-69W NB]LINE RLYG 018-0O2 2 F30AIS MARATHON FUSE BLOCK, I POLE $20.00 24: PANEL 24- 69W CAP I RLYG& NCS6 CTRL 014CO2 1 EB25B12 GE 12 PT TERMINAL BLOCK $61.98 24: PANEL 24- 69W CAP I RLYG& NCS6 CTRL 02&CO2 1 NON-5 BUSS 5A, 250 VOLT NON-RENEWABLE ONE TIME FUSE $22.10 24: PANEL 24- 69W CAP I RLYG& NCS6 CTRL 027-0O2 1 F30AIS MARATHON FUSE BLOCK, I POLE $10.00 24:PANEL24-69KVCAPIRLYG&NCS6CTRL 014CO2 1 jEB25B12 GE 12 PTTERMINAL BLOCK $61.98 25: PANEL 25- 69W BUS I& BKR NB8 CTRL 014CO2-1 4 EB25B12 GE 12 PTTERMINALBLOCK $247.90 25: PANEL 25- 69W BUS I& BKR NB8 CTRL 024CO2 5 EB27B04S GE 4 PT SHORTING TERM BLOCK $292.00 25: PANEL 25-69KV BUS 18BKR N88 CTRL 025-0O2 1 FR3G119119036 ABB FT-19R TEST SWITCH BLOCK, CODE 119,119, 036 CLEAR$996.25 COVER 25: PANEL 25- 69W BUS I& BKR NB8 CTRL 014CO2 1 EB25B12 GE 12 PT TERMINAL BLOCK $61.98 26: PANEL 26- 69W BUS I, BUS 2& BKR N810 014-0O2-1 4 EB25B12 GE 12 PT TERMINAL BLOCK $247.90 26: PANEL 26-69KV BUS I,BUS 28BKR N810 021-0O2 1 FR3G119119036 A88 FT-19RTEST SWITCH BLOCK, CODE 119,119, 036 CLEAR COVER $996.25 26: PANEL 26- 69W BUS I, BUS 2& BKR N810 014-0O2 1 E825812 GE 12 PT TERMINAL BLOCK $61.98 27: PANEL 27- 69W BUS 2& BKR NB5 CTRL 014CO2-1 2 EB25812 GE 12 PT TERMINAL BLOCK $123.95 27: PANEL 27- 69W BUS 2& BKR NB5 CTRL 024CO2 2 EB27B04S GE 4 PT SHORTING TERM BLOCK $116.80 2]: PANEL 27- 69W BUS 2& BKR NB5 CTRL 014CO2 1 EB25B12 GE 12PTTERMINALBLOCK $61.98 28: PANEL 28- 69W Nee& NB2 LINE RLYG 016-0O2 2 NON-5 BUSS 5A, 250 VOLT NON-RENEWABLE ONE TIME FUSE $44.20 28: PANEL 28- 69W Nee& NB2 LINE RLYG 016-0O2-1 4 NON-5 BUSS 5A, 250 VOLT NON-RENEWABLE ONE TIME FUSE $91.20 28: PANEL 28- 69W Nee& NB2 LINE RLYG 018-0O2 4 F30AIS MARATHON FUSE BLOCK, I POLE $40.00 IN: PANEL O- TELECOM RACK 1000O2 1 MAJORSINE2000130-IU MAIORSINE MAJOR POWER INVERTER MAJORSINE2000IWIU POWER INVERTER 13OVDC 2000W INPUT 105-145 VDC OUTPUT 120 VAC INCLUDES UTILITY BYPASS&TRANSFER En LISTED 19RACKMOUNTIU" $3,411.39 IN: PANEL 0-TELECOM RACK 101-0O2 1 808FXNSPPV AMAZON IRON FORGE CABLE 12 GAUGE EXTENSION CORD WITH MULTIPLE OUTLETS- BLACK H EAVY DUTY EXTENSION CORD 50 FT-12/3 SJTOW, 3 PRONG LIGHTED OUTLET CORDS $207.96 100: PANELO-TELECOMIIACK 033-0O2 6 10-9]09 MULTI -LINK MULTILIN K MLCD-I2-SM-C-BLK 12-PORT LC FIBERADAPTER PANEL CERAMIC $236.33 Ad- 11 10 1 REWIRING, ENGINEERING AND RE -TESTING $17,511.00 $34,600.33 P:\04\285 7O g\ .p Dwg\EP 6081-00 A.x HUTCHINSON UTILITIES COMMISSION ^I'xP61Tti'°" Board Action Form Agenda Item: Plant #1 Substation 115 kV Transformer - Advertisement for Bids Presenter: D. Lang Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Staff is requesting Board approval to advertise for bids for a transformer to be installed at the Plant #1 Substation as part of the 115 kV rebuild project. HUC will receive sealed bids at the Hutchinson Utilities office until 2:00 pm on April 15, 2026 and then publicly open and read aloud such Bids on the following equipment: "BASE BID: Two (2) 25/33.33/41.67 MVA at 55'C, 28/37.33/46.67 MVA at 65°C, ONAN/ONAF/ONAF, 115 kV Delta to 13.8 GRDY/7.97 kV with LTC and accessories. REQUIRED ALTERNATE BID: Two (2) 22.3/29.7/37.2 MVA at 55°C, 25/33.33/41.67 MVA at 65°C, ONAN/ONAF/ONAF, 115 kV Delta to 13.8 GRDY/7.97 kV with LTC and accessories." Attachments: -Ad for Bids 428509 Xfmr.pdf -Hutchinson MN Pwr Xfmr Plant1_Spec Final.pdf Jan 2026 BOARD ACTION REQUESTED: Approve advertisement for bids - Plant #1 Substation 115 kV Transformer Fiscal Impact: TBD Included in current budget: Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: ADVERTISEMENT FOR BIDS Notice is hereby given that on the 15' day of April, 2026, until 2:00 p.m., sealed bids will be received by the Hutchinson Utilities Commission of the city of Hutchinson, Minnesota, at the Hutchinson Utilities office, 225 Michigan Street SE, Hutchinson, MN 55350 and will be publicly opened and read aloud. The material required to be furnished, delivered, and installed is as follows: BASE BID: Two (2) 25/33.33/41.67 MVA at 55°C, 28/37.33/46.67 MVA at 65°C, ONAN/ONAF/ONAF, 115 kV Delta to 13.8 GRDY/7.97 kV with LTC and accessories. REQUIRED ALTERNATE BID: Two (2) 22.3/29.7/37.2 MVA at 55°C, 25/33.33/41.67 MVA at 65°C, ONAN/ONAF/ONAF, 115 kV Delta to 13.8 GRDY/7.97 kV with LTC and accessories. The above equipment shall be in accordance with the Specifications and proposed form of Contract now on file at the Hutchinson Utilities Commission, Hutchinson, Minnesota by this reference made apart hereof, as though fully set out and incorporated herein. Bidders desiring a copy of the bid forms and Specifications for individual use may obtain them from the Office of the Engineer, DGR Engineering, 1302 South Union, PO Box 511, Rock Rapids, Iowa 51246, telephone 712-472-2531, fax 712-472-2710, website www.dgr.com, e-mail dgr(�dgr.com, no deposit required. Each bid shall be made out on a bid form furnished by the Engineer and shall be accompanied by either a bid Bond issued by a Surety authorized to do business in the State of Minnesota and made payable to the Hutchinson Utilities Commission, or a certified check, cashier's check, or bank draft drawn on a state or national bank made payable to the Hutchinson Utilities Commission in a sum equal to five percent (5%) of the total bid. The bid security must not contain any conditions either in the body or as an endorsement thereon. Such bid security shall be forfeited to the Commission as liquidated damages in the event the successful Bidder fails or refuses to enter into a Contract within fifteen (15) days after the award of Contract and post a satisfactory Performance Bond. The successful Bidder shall furnish a Performance Bond in an amount equal to one hundred percent (100%) of the Contract Price and a Certificate of Insurance with appropriate limits to the Owner prior to the approval of the Contract. Bid envelopes must be clearly marked Bid Enclosed — Furnishing 115/13.8 kV Power Transformers — Plant 1 Substation. Payment schedule will be as described in the Material Agreement. All materials shall be delivered by the dates set in the Specifications. The Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson Minnesota reserves the right to defer acceptance of any bid for aperiod not to exceed thirty (30) days after the date bids are received and no bid may be withdrawn during this period. The Commission also reserves the right to waive irregularities and to reject any or all bids as it shall deem to be in the best interest of the Commission. P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl_Spec 428509.docx AB-1 President Date ATTESTED :S Secretary Date P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfinr Plantl_Spec 428509.docx AB-2 Bidding Documents Furnishing 115 / 13.8 kV Power Transformers — Plant 1 Substation Hutchinson Utilities Commission Hutchinson, Minnesota January 2026 DGR Project No. 428509 ATL reff I E, F *4 Tri TL r Bidding Documents Furnishing 115 / 13.8 kV Power Transformers - Plant 1 Substation Hutchinson Utilities Commission Hutchinson, Minnesota January 2026 I hereby certify that this plan, specification or report was prepared by me or under my direct supervision and that I am a duly Licensed Professional Engineer under the laws of the State of Minnesota. Signature: Alexander M. Richter, P.E. Date: License No.: 59098 Pages or sheets covered by this seal: All bound pages. DGR Project No. 428509 DGR Engineering 1302 S Union Street Rock Rapids, IA 51246 712-472-2531 dgr(a dgr.com Bidding Documents Furnishing 115 / 13.8 kV Power Transformers - Plant 1 Substation Hutchinson Utilities Commission Hutchinson, Minnesota Contact persons for this project are as follows: Owner: Hutchinson Utilities Commission 225 Michigan Street SE Hutchinson, Minnesota 55350 Phone: 320-587-4746 Daniel Lang Engineering Services Manager Phone: 320-234-0564 Email: dlang@ci.hutchinson.mn.us Engineer: DGR Engineering 1302 S Union Street Rock Rapids, Iowa 51246 Phone: 712-472-2531 Alex Richter, P.E. Project Manager Email: alex.richter@dgr.com Kalen Meyer, E.I Project Engineer Email kalen.meyer@dgr.com Bidding Documents Furnishing 115 / 13.8 kV Power Transformers - Plant 1 Substation Hutchinson Utilities Commission Hutchinson, Minnesota Table of Contents Page No. Advertisement for Bids................................................................AB-1 — AB-2 Instructions to Bidders.................................................................IB-1 — I13-6 BidBond......................................................................................1-2 BidForm......................................................................................BF-1 — BF-6 Performance Bond.......................................................................1-2 General Requirements..................................................................GR-1 — GR-7 Technical Specifications..............................................................TS-1 — TS-24 Material Agreement.....................................................................MA-1 — MA-5 ADVERTISEMENT FOR BIDS Notice is hereby given that on the 15' day of April, 2026, until 2:00 p.m., sealed bids will be received by the Hutchinson Utilities Commission of the city of Hutchinson, Minnesota, at the Hutchinson Utilities office, 225 Michigan Street SE, Hutchinson, MN 55350 and will be publicly opened and read aloud. The material required to be furnished, delivered, and installed is as follows: BASE BID: Two (2) 25/33.33/41.67 MVA at 55°C, 28/37.33/46.67 MVA at 65°C, ONAN/ONAF/ONAF, 115 kV Delta to 13.8 GRDY/7.97 kV with LTC and accessories. REQUIRED ALTERNATE BID: Two (2) 22.3/29.7/37.2 MVA at 55°C, 25/33.33/41.67 MVA at 65°C, ONAN/ONAF/ONAF, 115 kV Delta to 13.8 GRDY/7.97 kV with LTC and accessories. The above equipment shall be in accordance with the Specifications and proposed form of Contract now on file at the Hutchinson Utilities Commission, Hutchinson, Minnesota by this reference made apart hereof, as though fully set out and incorporated herein. Bidders desiring a copy of the bid forms and Specifications for individual use may obtain them from the Office of the Engineer, DGR Engineering, 1302 South Union, PO Box 511, Rock Rapids, Iowa 51246, telephone 712-472-2531, fax 712-472-2710, website www.dgr.com, e-mail dgr(�dgr.com, no deposit required. Each bid shall be made out on a bid form furnished by the Engineer and shall be accompanied by either a bid Bond issued by a Surety authorized to do business in the State of Minnesota and made payable to the Hutchinson Utilities Commission, or a certified check, cashier's check, or bank draft drawn on a state or national bank made payable to the Hutchinson Utilities Commission in a sum equal to five percent (5%) of the total bid. The bid security must not contain any conditions either in the body or as an endorsement thereon. Such bid security shall be forfeited to the Commission as liquidated damages in the event the successful Bidder fails or refuses to enter into a Contract within fifteen (15) days after the award of Contract and post a satisfactory Performance Bond. The successful Bidder shall furnish a Performance Bond in an amount equal to one hundred percent (100%) of the Contract Price and a Certificate of Insurance with appropriate limits to the Owner prior to the approval of the Contract. Bid envelopes must be clearly marked Bid Enclosed — Furnishing 115/13.8 kV Power Transformers — Plant 1 Substation. Payment schedule will be as described in the Material Agreement. All materials shall be delivered by the dates set in the Specifications. The Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson Minnesota reserves the right to defer acceptance of any bid for aperiod not to exceed thirty (30) days after the date bids are received and no bid may be withdrawn during this period. The Commission also reserves the right to waive irregularities and to reject any or all bids as it shall deem to be in the best interest of the Commission. P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl_Spec 428509.docx AB-1 President Date ATTESTED :S Secretary Date P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfinr Plantl_Spec 428509.docx AB-2 INSTRUCTIONS TO BIDDERS 1.01 FAMILIARITY OF CONDITIONS. A. Bidders are required to examine to their satisfaction, the Plans and Specifications and to make sure that the requirements are fully understood. The failure or omission of any Bidder to examine any form, instrument, or document shall in no way relieve any Bidder from any obligation regarding their bid. 1.02 BIDDERS QUALIFICATIONS. A. Bidder must be capable of performing the work bid upon. The lowest responsive Bidders will be required to satisfy the Owner as to their integrity, experience, number of Employees, equipment, personal, and financial ability to perform and ability to finance the cost of the work. The Bidder shall submit an Experience List with their bid, showing that they have successfully built transformers of a similar size and complexity in recent years to the US market according to IEEE Standards. B. If the information and data requested by the Owner is not furnished, the Owner may consider the Bidder non -responsive or non -responsible. The Owner reserves the right, in its sole and absolute discretion, to accept the bid of a Bidder despite the fact that said Bidder has not submitted any information, list, data or statement requested. C. The Owner reserves the right to reject any bid if the Owner determines, in its sole and absolute discretion, that the Bidder is not properly qualified to carry out the obligations of the Contract and/or to complete the work contemplated by the Contract. Conditional bids will not be accepted. 1.03 METHOD OF BIDDING. A. Bids shall be submitted on aunit price or lump sum basis as stated on the Bid Form. In preparing a bid, the Bidder shall specify the price, written legibly in ink or typewritten, at which the Bidder proposes to do each item of work. The price shall be stated with respect to each and every alternate item, whether an add alternate, or a deduct alternate. Failure to state a price for any alternate bid item shall constitute a non -responsive bid that will not be considered. The prices shall be stated in figures. In items where unit price is required, the total amount for each item shall be computed at the unit prices bid for the quantities given in the estimate. In the event of discrepancies in the unit price extensions listed in the bid, unit prices shall govern. B. For all work let on a unit price basis, the Engineer's estimate of quantities shown on the bid is understood to be approximate only, and will be used only for the purpose of comparing bids. For work let on a lump sum basis, any estimate of quantities provided is furnished for the convenience of Bidders and is not guaranteed. P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwrXfiur P1ant1_Spec428509.docx I13-1 1.04 BID SECURITY. A. Each bid shall be accompanied by bid security as specified in the Advertisement for Bids and made payable to the Owner. Should the Bidder receiving the award fail to execute a satisfactory Contract and file acceptable bonds within fifteen (15) days after the award of Contract, the Owner may consider Bidder to be in default, annul the Notice of Award, and the bid security of that Bidder will be forfeited. Such forfeiture shall be the Owner's exclusive remedy if Bidder defaults. B. The bid security of unsuccessful Bidders will be returned promptly after the award has been made. In no case will the bid security be held longer than thirty (30) days without written permission of the Bidder, except that the bid security of the Bidder to whom the Contract is awarded will be retained until he or she has entered into Contract and filed an acceptable Bond. 1.05 TAXES. A. The prices for material items in all bids shall not include provisions for the payment of any taxes to the State of Minnesota. The Owner will issue a tax exemption certificate to the successful Bidder. 1.06 ALTERNATE MATERIALS. A. Requests for approval of `or -equal' materials and equipment shall be submitted to the Engineer in writing at least fifteen days prior to receipt of bids. Each request shall conform to the terms and conditions of the bidding documents and to the type, function, and quality standards of approved materials and equipment. The burden of proof of the merit of proposed `or -equal' materials and equipment is upon the Bidder. The Engineer's decision of approval or disapproval of a proposed `or - equal' item will be final. No substitution shall be approved except by a written addendum issued to all prospective Bidders. B. Bidders may submit bids for alternate materials which do not meet all the detailed requirements of the Specifications. Such submissions shall be in addition to the basic bid which shall comply with all requirements of the Specifications. Bid evaluation and Contract award will be made on the basis of the base bid. Alternate materials will then be considered, and the final Contract amount adjusted accordingly if the Owner decides to accept bids for alternate materials. In submitting bids for alternate materials, Bidders shall submit manufacturer's data and note the exceptions to the requirements of the Plans and Specifications. C. Additionally, as part of evaluating `or -equal' requests, Engineer will consider the following: Manufacturer's ability to conform with the project specifications. 2. Manufacturer's relevant experience. P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl_Spec 428509.docx I13-2 3. Manufacturer's support capabilities. 4. The Owner's and Engineer's experience with the proposed equipment. 1.07 TERMS AND CONDITIONS. A. The Bidder is invited to attach their standard patent protection and liability limitation conditions, but shall not include any other terms and conditions to this bid. Attachment of additional terms and conditions shall be grounds for disqualification of the submitted bid. 1.08 CHANGES IN QUANTITIES. A. Not used. 1.09 SUBMISSION OF BIDS. A. Bidders will be furnished with bid form(s) giving the estimate of quantities needed to complete the work. Two copies of the completed bid form(s) and all supporting documentation shall be included with the bid. B. If the bid is made by an individual, his or her name and post office address must be shown. If made by a firm or partnership, the name and post office address of the firm or partnership must be shown. If made by a corporation, the person signing the bid must name the state under the laws of which the corporation is chartered, and the name, title, and business address of the executive head of the corporation. Anyone signing a bid as agent may be required to submit satisfactory evidence of his or her authority to do so. C. Any changes or alterations made in the official bid form, or any additions thereto, may result in the rejection of the bid. No bid will be considered which contains a clause in which the Bidder reserves the right to accept or reject a Contract awarded by the Owner. Bids in which the unit prices are obviously unbalanced may be rej ected. D. Should the Bidder find discrepancies, ambiguities or omissions from these documents, they should immediately notify the Engineer and an addendum will be sent to all known entities holding copies of the Bidding Documents. E. Two copies of each bid form and all supporting documentation shall be provided. Bids shall be placed in an opaque envelope and the envelope sealed and marked "Bid Enclosed: Furnishing 115/13.8 kV Power Transformers —Plant 1 Substation" to indicate its contents. If forwarded by mail, the envelope shall be mailed to the following address: Hutchinson Utilities Commission 225 Michigan Street SE Hutchinson, MN 55350-1905 P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl_Spec 428509.docx I13-3 F. Receipt of any Addenda must be acknowledged on the bid form or a copy of any Addenda relating to the bid shall be signed and attached to the bid. G. No oral, facsimile machine, telegraphic or telephonic bids or modifications will be considered. 1.10 MODIFICATION OR WITHDRAWAL OF BIDS. A. A bid may be withdrawn by an appropriate document duly executed in the same manner that a bid must be executed and delivered to the place where bids are to be submitted prior to the date and time for the opening of bids. Upon receipt of such notice, the unopened bid will be returned to the Bidder. B. If a Bidder wishes to modify its bid prior to bid opening, Bidder must withdraw its initial bid and submit a new bid prior to the date and time for the opening of bids. C. No bid may be withdrawn for a period of thirty (30) days after the scheduled date and time for the receipt of bids. 1.11 CONTRACT AWARD. A. Award of the Contract, if an award is made, will be on the basis of the Contract Price as is in the best interest of the Owner. It is the intent of the Owner to award one (1) Contract for the Power Transformer as is deemed to be in the best interest of the Owner. The effect of the Contract Price and evaluated costs, guaranteed delivery date, dimensions, and the experience record of the Bidder on units of similar size and rating will be considered in evaluating the bids. This may also include location of manufacturing and assembly, and preference may be given to units manufactured and assembled in the USA. The Owner reserves the right to reject any or all bids, waive technicalities, and make award(s) as deemed to be in the best interest of the Owner. In addition to cost, other items that will impact the award decision include the following: 1. Relevant experience with installations of similar size and type. 2. Support capabilities. 3. Ability to meet specified delivery schedule. 4. Conformance to Project Specifications. 5. Life cycle and maintenance costs. 6. The Owner's and Engineer's past experience with either the Bidder or Power Transformer manufacturer. P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl_Spec 428509.docx I13-4 1.12 PERFORMANCE BOND. A. The Bidder to whom the Contract is awarded shall furnish a Performance Bond in an amount equal to the Contract Price of the bid guaranteeing the faithful performance of the work in accordance with the terms of the Contract. Such Bond shall be with a Surety company authorized to do business in the State of Minnesota and in form acceptable to the Owner. Any costs associated with procuring the necessary Bond shall be included in the bid prices. 1.13 EXECUTION OF CONTRACT. A. The Bidder to whom the Contract has been awarded shall enter into Contract with the Owner within fifteen (15) days after the award has been made. B. No bid shall be considered binding upon the Owner until the Contract is properly executed by both parties and all required Bonds are filed and certificates of insurance are in place. C. The Contract, when executed, shall be combined with all the Contract Documents identified in the Material Agreement representing the entire agreement between parties. The Bidder shall not claim any modification resulting from representation or promise made by representative of the Owner or other persons. 1.14 PROJECT SCHEDULE. A. The delivery date for the Power Transformers is desired to be no earlier than April 2, 2029 and no later than August 31, 2029. Based on current material availability, both later and earlier delivery dates will be considered by the Owner. B. The Bidder shall provide in their bid a guaranteed delivery and assembly date. Offloading and placement on the pad will be completed by the Contractor. C. Field installation and testing work shall be completed by the Contractor or an appointed representative within fifteen (15) days of delivery to the site. D. The Bidder shall provide in their Bid a guaranteed delivery and assembly date that Offloading and placement on the pad will be completed by the Contractor. If the delivery and assembly is not completed by the dates specified in the Material Agreement, liquidated damages will apply on a per unit basis as set forth in the Material Agreement. E. If the field installation and testing is not completed by the dates as specified in the Material Agreement, liquidated damages will apply on a per unit basis as set forth in the Material Agreement. F. The Owner agrees to indemnify the Contractor for circumstances beyond his control, including acts of God, acts of government, and related circumstances. P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl_Spec 428509.docx 113-5 Actions that cause delivery delays that are under the control of the Contractor are failure to allow sufficient time for manufacturing, failure to inform the Engineer of changes in the manufacturing schedule, or lack of cooperation in establishing effective measures by which delays could be minimized. G. The Contractor shall provide monthly progress reports to the Engineer during the manufacturing of the transformer. 1.15 TARIFFS: A. `Tariff' refers to any tax, duty, customs charge, or import/export fee imposed by a governmental authority on goods, materials, or components. These charges may be based on factors such as origin, classification, or destination. This includes tariffs enacted under trade laws —such as Sections 201, 232, or 301 of the U.S. Trade Actor similar laws in other jurisdictions. Tariffs may be in effect at the time the contract is signed or may be introduced, changed, or reinterpreted during the term of the Agreement. B. In the event that tariffs are imposed or increased after the effective date of this Agreement, any resulting cost adjustment shall not exceed five percent (5%) of the contract price without the Owner's prior written consent. The Contractor must provide detailed supporting documentation to substantiate any requested increase. C. The Contractor represents and warrants that all pricing set forth in this Bid and any resulting Material Agreement fully accounts for all tariffs in effect as of the date of bid submission. The Contractor expressly waives any right to seek adjustments, claims, or additional compensation based on tariffs existing at the time of submission. D. As a condition of payment and upon request, Contractor shall furnish documentation verifying that any additional costs claimed due to federal trade tariffs are legitimate and have been actually incurred. Such documentation may include, but is not limited to, customs declarations, applicable tariff schedules, shipping invoices, and bills of lading. * * * END OF SECTION * * * P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl_Spec 428509.docx I13-6 DOC E 11r,Gr[fEF ri BID BOND �cLIrvri�rii=, COnraniii�F. Any singular reference to Bidder, Surety, Owner or other party shall be considered plural where applicable. BIDDER (Name and Address): SURETY (Name, and Address of Principal Place of Business): OWNER (Name and Address): BID Bid Due Date: Description (Project Name— Include Location): BOND Bond Number: Date: Penal sum (Words) (Figures) Surety and Bidder, intending to be legally bound hereby, subject to the terms set forth below, do each cause this Bid Bond to be duly executed by an authorized officer, agent, or representative. BIDDER SURETY (Seal) (Seal) Bidder's Name and Corporate Seal Surety's Name and Corporate Seal By: By: Signature Print Name Title Attest: Attest: Signature (Attach Power of Attorney) Print Name Title Signature Signature Title Title Note: Addresses are to be used for giving any required notice. Provide execution by any additional parties, such as joint venturers, if necessary. EJCDC® C-430, Bid Bond (Penal Sum Form). Published 2013. Prepared by the Engineers Joint Contract Documents Committee. Page 1 of 2 1. Bidder and Surety, jointly and severally, bind themselves, their heirs, executors, administrators, successors, and assigns to pay to Owner upon default of Bidder the penal sum set forth on the face of this Bond. Payment of the penal sum is the extent of Bidder's and Surety's liability. Recovery of such penal sum under the terms of this Bond shall be Owner's sole and exclusive remedy upon default of Bidder. 2. Default of Bidder shall occur upon the failure of Bidder to deliver within the time required by the Bidding Documents (or any extension thereof agreed to in writing by Owner) the executed Agreement required by the Bidding Documents and any performance and payment bonds required by the Bidding Documents. 3. This obligation shall be null and void if: 3.1 Owner accepts Bidder's Bid and Bidder delivers within the time required by the Bidding Documents (or any extension thereof agreed to in writing by Owner) the executed Agreement required by the Bidding Documents and any performance and payment bonds required by the Bidding Documents, or 3.2 All Bids are rejected by Owner, or 3.3 Owner fails to issue a Notice of Award to Bidder within the time specified in the Bidding Documents (or any extension thereof agreed to in writing by Bidder and, if applicable, consented to by Surety when required by Paragraph 5 hereof). 4. Payment under this Bond will be due and payable upon default of Bidder and within 30 calendar days after receipt by Bidder and Surety of written notice of default from Owner, which notice will be given with reasonable promptness, identifying this Bond and the Project and including a statement of the amount due. 5. Surety waives notice of any and all defenses based on or arising out of anytime extension to issue Notice of Award agreed to in writing by Owner and Bidder, provided that the total time for issuing Notice of Award including extensions shall not in the aggregate exceed 120 days from the Bid due date without Surety's written consent. 6. No suitor action shall be commenced under this Bond prior to 30 calendar days after the notice of default required in Paragraph 4 above is received by Bidder and Surety and in no case later than one year after the Bid due date. 7. Any suitor action under this Bond shall be commenced only in a court of competent jurisdiction located in the state in which the Project is located. 8. Notices required hereunder shall be in writing and sent to Bidder and Surety at their respective addresses shown on the face of this Bond. Such notices may be sent by personal delivery, commercial courier, or by United States Registered or Certified Mail, return receipt requested, postage pre -paid, and shall be deemed to be effective upon receipt by the party concerned. 9. Surety shall cause to be attached to this Bond a current and effective Power of Attorney evidencing the authority of the officer, agent, or representative who executed this Bond on behalf of Surety to execute, seal, and deliver such Bond and bind the Surety thereby. 10. This Bond is intended to conform to all applicable statutory requirements. Any applicable requirement of any applicable statute that has been omitted from this Bond shall be deemed to be included herein as if set forth at length. If any provision of this Bond conflicts with any applicable statute, then the provision of said statute shall govern and the remainder of this Bond that is not in conflict therewith shall continue in full force and effect. 11. The term "Bid" as used herein includes a Bid, offer, or proposal as applicable. EJCDC® C-430, Bid Bond (Penal Sum Form). Published 2013. Prepared by the Engineers Joint Contract Documents Committee. Page 2 of 2 BID FORM TO: Hutchinson Utilities Commission Hutchinson, Minnesota FROM: Bidder's Name Address Pursuant to and in compliance with the Advertisement for Bids and the Instructions to Bidders relating thereto, the terms of which are incorporated herein by reference thereto, the undersigned as Bidder offers and agrees, if this offer is accepted, to furnish and deliver the equipment and materials in strict conformance with the Specifications forming a part of these Contract documents and in accordance with following Addenda for the sum indicated on the following bid schedule. Addendum Number Addendum Date The prices set forth herein do not include any sums which are or may be payable by the seller on account of taxes imposed by the State of Minnesota upon the sale, purchase or use of the equipment. If any such tax is applicable to the sale, purchase or use of the equipment, the amount thereof shall be paid by the Owner. 2. The prices included herein are firm without regard for time of delivery, increase in cost from Bidder, or any other factor. Note: the Owner may accept non -firm Bids that are presented as subject to metals escalation, tariffs, or similar provisions. If pricing of that nature is provided, a clear description of how pricing adjustments will be made shall be furnished, including metals base prices, pricing indexes, and quantity of metals to be supplied. See Instructions to Bidders for applicable criteria. 3. The price of the equipment set forth herein shall include the cost of delivery to the job site and offloading, assembly, and field testing as set forth in the Specifications. The guaranteed delivery date of the transformer shall be included in this Bid. Field testing of the transformers shall be completed no later than fifteen (15) days after delivery. 4. Title to the equipment shall pass to the Owner after all required field testing has met the requirements of the specification and the test results have passed the requirements. 5. This bid is void unless a materials Contract based on this bid is entered into by the Owner and the Contractor within thirty (30) days after the date hereof. P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwrXfiur P1ant1_Spec428509.docx BF-1 BASE BID FORM FURNISHING 115 / 13.8 kV POWER TRANSFORMERS - PLANT 1 SUBSTATION HUTCHINSON UTILITIES COMMISSION :NAto]:I1►6Y07►A1k&11►1►1 swell P1 SECTION 6: POWER TRANSFORMER PRICING The Bidder, being familiar with all the details, conditions, and requirements hereby proposes to furnish power transformers with load tap changer and other accessories as specified with the following maximum guaranteed loss characteristics according to the following amounts. The Contractor shall provide a Base Price according to the specified capacity ratings (MVA). Base Bid Price Each Item Quantity Description 115 kV Delta to 13.8 GRDY/7.97 kV Total Number 25/33.33/41.67 MVA at 55°C 28/37.33/46.67 (Quantity ` Base Price) MVA 65°C, ONAN/ONAF/ONAF 6A 2 Base Price (Including Transportation) $ $ 6B 2 Rigging, Offloading, Crane $ $ 6C 2 Field Services (Assembly & Testing) $ $ 6D 2 Contract Price (6A + 6B + 6C) _ $ $ SECTION 7: PRICE EVALUATION INFORMATION The Contractor shall provide the following guaranteed maximum loss (kW) information for the Owner to complete evaluation of the Proposals. The Owner will evaluate Proposals based on the Contractor's ability to meet the schedule and technical requirements of the specifications. Base Bid Price Each Item Quantity Description 115 kV Delta to 13.8 GRDY/7.97 kV Total Number 25/33.33/41.67 MVA at 55°C 28/37.33/46.67 (Quantity ` Base Price) MVA 65°C, ONAN/ONAF/ONAF 7A ""No Load Loss, 20oC (kW) 7B Total loss @ base MVA, 75°C (kW) 7C Load loss (7B - 7A) (kW) 7D 2 Contract Price (6D) $ $ 7E 2 (7A) x $10,750.00 = $ $ 7F 2 (7C) x $640.00 = $ $ 7G 2 Total Evaluation Price (7D + 7E + 7F) _ $ $ P:A04\285\09\Sprdsht\Bid Forni Xfmr 428509.xlsx BF-2 BASE BID FORM FURNISHING 115 / 13.8 kV POWER TRANSFORMERS - PLANT 1 SUBSTATION HUTCHINSON UTILITIES COMMISSION HUTCHINSON, MINNESOTA SECTION 8: SUPPLEMENTAL PROPOSAL INFORMATION The Bidder shall provide the following information for the Owner to ensure the delivery, transportation and other requirements of the Specifications are met by the Bidder. Liquidated damages apply to delivery and installation requirements. Description Base Bid Specs Each 115 kV Delta to 13.8 GRDY/7.97 kV 25/33.33/41.67 MVA at 55°C 28/37.33/46.67 MVA 65°C, ONAN/ONAF/ONAF Guaranteed Sound Levels (dB): Guaranteed Auxiliary Losses (kW): Weight, Core and Coils (lbs.): Weight, Tank and Fittings (lbs.): Weight, Oil (lbs.): Weight, Total (lbs.): Oil Capacity (gal.): Dimension, Height (in.): Dimension, Width (in.): Dimension, Depth (in.): Manufacturer and Manufacturing Location: Guaranteed Delivery Date (MM / DO / YYYY): Warranty duration included with Bid Price: Truck or Rail Delivery": Circular Layer: Winding Material and Type: Shipped with or without oil"": Supporting documents attached: Attachments to this Bid: The following documents are submitted with and made a condition of this Bid. Indicate "yes" or "no" for each item included with this Bid Form. All items are required for this Bid. Recommended Spare Parts and Price List attached (Y/N): Performance Bond included in the Base Price (Y/N): " If rail delivery is used, the Contractor shall furnish transportation and loading of the transformer from the appropriate rail siding to the job site. "" If the unit is to be filled in the field, the cost of performing this task shall be included and completed by the Firm after delivery. All materials shall be F.O.B., Hutchinson, Minnesota. P:A04\285\09\Sprdsht\Bid Forni Xfmr 428509.xlsx BF-3 REQUIRED ALTERNATE BID FORM FURNISHING 115 / 13.8 kV POWER TRANSFORMERS - PLANT 1 SUBSTATION HUTCHINSON UTILITIES COMMISSION :NAto]:I1►6Y07►A1k&11►1►1 swell P1 SECTION 9: POWER TRANSFORMER PRICING The Bidder, being familiar with all the details, conditions, and requirements hereby proposes to furnish power transformers with load tap changer and other accessories as specified with the following maximum guaranteed loss characteristics according to the following amounts. The Contractor shall provide a Base Price according to the specified capacity ratings (MVA). Required Alternate Bid Price Each Item Quantity Description 115 kV Delta to 13.8 GRDY/7.97 kV Total Number 22.3/29.7/37.2 MVA at 55°C 25/33.33/41.67 (Quantity ` Base Price) MVA 65°C, ONAN/ONAF/ONAF 9A 2 Base Price (Including Transportation) $ $ 9B 2 Rigging, Offloading, Crane $ $ 9C 2 Field Services (Assembly & Testing) $ $ 9D 2 Contract Price (9A + 9B + 9C) _ $ $ SECTION 10: PRICE EVALUATION INFORMATION The Contractor shall provide the following guaranteed maximum loss (kW) information for the Owner to complete evaluation of the Proposals. The Owner will evaluate Proposals based on the Contractor's ability to meet the schedule and technical requirements of the specifications. Required Alternate Bid Price Each Item Quantity Description 115 kV Delta to 13.8 GRDY/7.97 kV Total Number 22.3/29.7/37.2 MVA at 55°C 25/33.33/41.67 (Quantity ` Base Price) MVA 65°C, ONAN/ONAF/ONAF 10A ""No Load Loss, 20oC (kW) 108 Total loss @ base MVA, 75°C (kW) 10C Load loss (108 - 10A) (kW) 10D 2 Contract Price (9D) $ $ 10E 2 (10A) x $10,750.00 = $ $ 10F 2 (10C) x $800.00 = $ $ 10G 2 Total Evaluation Price (10D + 10E + 10F) _ $ $ P:A04\285\09\Sprdsht\Bid Forni Xfmr 428509 ALT.xlsx BF-4 REQUIRED ALTERNATE BID FORM FURNISHING 115 / 13.8 kV POWER TRANSFORMERS - PLANT 1 SUBSTATION HUTCHINSON UTILITIES COMMISSION HUTCHINSON, MINNESOTA SECTION 11: SUPPLEMENTAL PROPOSAL INFORMATION The Bidder shall provide the following information for the Owner to ensure the delivery, transportation and other requirements of the Specifications are met by the Bidder. Liquidated damages apply to delivery and installation requirements. Description Required Alternate Bid Price Each 115 kV Delta to 13.8 GRDY/7.97 kV 22.3/29.7/37.2 MVA at 55°C 25/33.33/41.67 MVA 65°C, ONAN/ONAF/ONAF Guaranteed Sound Levels (dB): Guaranteed Auxiliary Losses (kW): Weight, Core and Coils (lbs.): Weight, Tank and Fittings (lbs.): Weight, Oil (lbs.): Weight, Total (lbs.): Oil Capacity (gal.): Dimension, Height (in.): Dimension, Width (in.): Dimension, Depth (in.): Manufacturer and Manufacturing Location: Guaranteed Delivery Date (MM / DO / YYYY): Warranty duration included with Bid Price: Truck or Rail Delivery": Circular Layer: Winding Material and Type: Shipped with or without oil"": Supporting documents attached: Attachments to this Bid: The following documents are submitted with and made a condition of this Bid. Indicate "yes" or "no" for each item included with this Bid Form. All items are required for this Bid. Recommended Spare Parts and Price List attached (Y/N): Performance Bond included in the Base Price (Y/N): " If rail delivery is used, the Contractor shall furnish transportation and loading of the transformer from the appropriate rail siding to the job site. "" If the unit is to be filled in the field, the cost of performing this task shall be included and completed by the Firm after delivery. All materials shall be F.O.B., Hutchinson, Minnesota. P:A04\285\09\Sprdsht\Bid Forni Xfmr 428509 ALT.xlsx BF-5 Firm Pricing (Y/N): If no, is applicable documentation included (Y/N): Bid Security Enclosed (Y/N): The undersigned bidder certifies that this bid is made in good faith without collusion or connection with any other person or persons bidding on the work. The undersigned bidder states that this bid is made in conformity with the Contract Documents and agrees that, in the event of any discrepancies or differences between any conditions of this bid and the Specifications, the provisions of the latter shall prevail. Dated this day of , 2026. Bidder Address Authorized Officer: Signature Print Title Phone E-mail Contact for Contract Document Processing: Name Phone E-mail Contact for Order Status Updates: Name Phone E-mail P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl_Spec 428509.docx BF-6 'll C(125 I"GINfkfay} J0110 C;!)MRMI DOCLIMENIS COhnMl"[fEF; CONTRACTOR (name and address): OWNER (name and address): CONSTRUCTION CONTRACT Effective Date of the Agreement: Amount: Description (name and location): PERFORMANCE BOND SURETY (name and address of principal place of business): BOND Bond Number: Date (not earlier than the Effective Date of the Agreement of the Construction Contract): Amount: Modifications to this Bond Form: ❑ None ❑ See Paragraph 16 Surety and Contractor, intending to be legally bound hereby, subject to the terms set forth below, do each cause this Performance Bond to be duly executed by an authorized officer, agent, or representative. CONTRACTOR AS PRINCIPAL (seal) Contractor's Name and Corporate Seal By: Signature Print Name SURETY Surety's Name and Corporate Seal By: Signature (attach power of attorney) Print Name Title Title Attest: Attest: Signature Title Title Signature (seal) Notes: (1) Provide supplemental execution by any additional parties, such as joint venturers. (2) Any singular reference to Contractor, Surety, Owner, or other party shall be considered plural where applicable. EJCDC® C-610, Performance Bond Copyright © 2013 National Society of Professional Engineers, American Council of Engineering Companies, and American Society of Civil Engineers. All rights reserved. 1 of 2 4. 6. The Contractor and Surety, jointly and severally, bind themselves, their heirs, executors, administrators, successors, and assigns to the Owner for the performance of the Construction Contract, which is incorporated herein by reference. If the Contractor performs the Construction Contract, the Surety and the Contractor shall have no obligation under this Bond, except when applicable to participate in a conference as provided in Paragraph 3. If there is no Owner Default under the Construction Contract, the Surety's obligation under this Bond shall arise after: 3.1. The Owner first provides notice to the Contractor and the Surety that the Owner is considering declaring a Contractor Default. Such notice shall indicate whether the Owner is requesting a conference among the Owner, Contractor, and Surety to discuss the Contractor's performance. If the Owner does not request a conference, the Surety may, within five (5) business days after receipt of the Owner's notice, request such a conference. If the Surety timely requests a conference, the Owner shall attend. Unless the Owner agrees otherwise, any conference requested under this Paragraph 3.1 shall be held within ten (10) business days of the Surety's receipt of the Owner's notice. If the Owner, the Contractor, and the Surety agree, the Contractor shall be allowed a reasonable time to perform the Construction Contract, but such an agreement shall not waive the Owner's right, if any, subsequently to declare a Contractor Default; 3.2. The Owner declares a Contractor Default, terminates the Construction Contract and notifies the Surety; and 3.3. The Owner has agreed to pay the Balance of the Contract Price in accordance with the terms of the Construction Contract to the Surety or to a contractor selected to perform the Construction Contract. Failure on the part of the Owner to comply with the notice requirement in Paragraph 3.1 shall not constitute a failure to comply with a condition precedent to the Surety's obligations, or release the Surety from its obligations, except to the extent the Surety demonstrates actual prejudice. When the Owner has satisfied the conditions of Paragraph 3, the Surety shall promptly and at the Surety's expense take one of the following actions: 5.1. Arrange for the Contractor, with the consent of the Owner, to perform and complete the Construction Contract; 5.2. Undertake to perform and complete the Construction Contract itself, through its agents or independent contractors; 5.3. Obtain bids or negotiated proposals from qualified contractors acceptable to the Owner for a contract for performance and completion of the Construction Contract, arrange for a contract to be prepared for execution by the Owner and a contractor selected with the Owners concurrence, to be secured with performance and payment bonds executed by a qualified surety equivalent to the bonds issued on the Construction Contract, and pay to the Owner the amount of damages as described in Paragraph 7 in excess of the Balance of the Contract Price incurred by the Owner as a result of the Contractor Default; or 5.4. Waive its right to perform and complete, arrange for completion, or obtain a new contractor, and with reasonable promptness under the circumstances: 5.4.1. After investigation, determine the amount for which it may be liable to the Owner and, as soon as practicable after the amount is determined, make payment to the Owner; or 5.4.2. Deny liability in whole or in part and notify the Owner, citing the reasons for denial. If the Surety does not proceed as provided in Paragraph 5 with reasonable promptness, the Surety shall be deemed to be in default on this Bond seven days after receipt of an additional written notice from the Owner to the Surety demanding that the Surety perform its obligations under this Bond, and the Owner shall be entitled to enforce any remedy available to the Owner. If the Surety proceeds as provided in Paragraph 5.4, and the Owner refuses the payment or the Surety has denied liability, in whole or in part, without further notice the Owner shall be entitled to enforce any remedy available to the Owner. If the Surety elects to act under Paragraph 5.1, 5.2, or 5.3, then the responsibilities of the Surety to the Owner shall not be greater than those of the Contractor under the Construction Contract, and the responsibilities of the Owner to the Surety shall not be greater than those of the Owner under the Construction Contract. Subject to the commitment by the Owner to pay the Balance of the Contract Price, the Surety is obligated, without duplication for: 7.1. the responsibilities of the Contractor for correction of defective work and completion of the Construction Contract; 7.2. additional legal, design professional, and delay costs resulting from the Contractor's Default, and resulting from the actions or failure to act of the Surety under Paragraph 5; and 7.3. liquidated damages, or if no liquidated damages are specified in the Construction Contract, actual damages caused by delayed performance or non-performance of the Contractor. 8. If the Surety elects to act under Paragraph 5.1, 5.3, or 5.4, the Surety's liability is limited to the amount of this Bond. 9. The Surety shall not be liable to the Owner or others for obligations of the Contractor that are unrelated to the Construction Contract, and the Balance of the Contract Price shall not be reduced or set off on account of any such unrelated obligations. No right of action shall accrue on this Bond to any person or entity other than the Owner or its heirs, executors, administrators, successors, and assigns. 10. The Surety hereby waives notice of any change, including changes of time, to the Construction Contract or to related subcontracts, purchase orders, and other obligations. 11. Any proceeding, legal or equitable, under this Bond may be instituted in any court of competent jurisdiction in the location in which the work or part of the work is located and shall be instituted within two years after a declaration of Contractor Default or within two years after the Contractor ceased working or within two years after the Surety refuses or fails to perform its obligations under this Bond, whichever occurs first. If the provisions of this paragraph are void or prohibited by law, the minimum periods of limitations available to sureties as a defense in the jurisdiction ofthe suit shall be applicable. 12. Notice to the Surety, the Owner, or the Contractor shall be mailed or delivered to the address shown on the page on which their signature appears. 13. When this Bond has been furnished to comply with a statutory or other legal requirement in the location where the construction was to be performed, 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 common law bond. 14. Definitions 14.1. Balance of the Contract Price: The total amount payable by the Owner to the Contractor under the Construction Contract after all proper adjustments have been made including allowance for the Contractor for any amounts received or to be received by the Owner in settlement of insurance or other claims for damages to which the Contractor is entitled, reduced by all valid and proper payments made to or on behalf of the Contractor under the Construction Contract. 14.2. Construction Contract: The agreement between the Owner and Contractor identified on the cover page, including all Contract Documents and changes made to the agreement and the Contract Documents. 14.3. Contractor Default: Failure of the Contractor, which has not been remedied or waived, to perform or otherwise to comply with a material term of the Construction Contract. 14.4. Owner Default: Failure of the Owner, which has not been remedied or waived, to pay the Contractor as required under the Construction Contract or to perform and complete or comply with the other material terms of the Construction Contract. 14.5. Contract Documents: All the documents that comprise the agreement between the Owner and Contractor. 15. If this Bond is issued for an agreement between a contractor and subcontractor, the term Contractor in this Bond shall be deemed to be Subcontractor and the term Owner shall be deemed to be Contractor. 16. Modifications to this Bond are as follows: None. EJCDC® C-610, Performance Bond Copyright © 2013 National Society of Professional Engineers, American Council of Engineering Companies, and American Society of Civil Engineers. All rights reserved. 2 of 2 GENERAL REQUIREMENTS PART 1 - GENERAL 1.01 DEFINITION OF TERMS Addenda: Changes or information applying to the Plans and Specifications. Addenda are issued prior to opening of Bids. Bidder: Any individual, firm or corporation submitting a Proposal for the Work under their own name. Bond: The Performance/Maintenance bond or the Payment Bond executed by the Contractor and the Contractor's Surety in favor of the Owner, guarantying the faithful performance of the obligations assumed by the Contract and the payment of all debts pertaining to the Work. Change Order: A written order by the Engineer for changes or alterations in the Work. Change Orders are issued after the opening of Bids. Clerk or Secretary: The one who keeps the records and correspondence of the Owner. Contract: The written agreement between the Contractor and the Owner setting forth the terms and conditions under which the Work is to be accomplished and all documents incorporated therein by reference. Contractor: Any individual, firm or corporation contracting as the Party of the Second Party in the Contract. Employee: Any person employed on the Work to which the Specifications apply and who is under the direction or control of or receives compensation from the Contractor or a Subcontractor. Engineer: DeWild Grant Reckert and Associates Company, dba DGR Engineering, 1302 South Union Street, Rock Rapids, IA 51246. The Engineer is the general administrator of the Contract. Notice: Advertisement forbids, advertising the date and time for hearing objections and/or opening and reading bids on the Work. Owner: The Party of the First Part as represented by Council, commission, or Board of Trustees of the City, Utility, or the individual or firm for whom the Work is performed. Plans (Drawing ): Graphic and pictorial representations of the design, location and dimensions of the Work. P:A04\285\09\1))cASpPc\X9`arrr\Hutchins,on MN 11wr X9`arrr Pland Spec 428.509.docx GPI I Project: The total construction authorized by the Owner as a single program of which the Work may constitute a whole or a part. Proposal (Bid) Guaranty The security, required by Notice and the Proposal, to be furnished by the Bidder as a guaranty that the Bidder will enter into Contract for Work awarded to the Bidder and furnish an acceptable Bond. Specifications: The Instructions to Bidders, General Conditions, Special Conditions and Technical descriptions of material, equipment, construction systems, standards and workmanship applicable to the Work. Subcontractor: Any individual, firm or corporation who has, with the approval of the Owner, contracted with the Contractor to execute and perform in the Contractor's stead all or any part of the Contract. Superintendent: The Contractor's authorized representative in responsible charge of the Work. Surely: The corporate body bound with and for the Contractor for the acceptable performance of the Contract. The Work: The materials, equipment and labor necessary for the construction of the improvement as indicated in the Specifications, on the Plans, or as set forth in the Contract. Treasurer: The duly designated Treasurer of the Owner. 1.02 SUMMARY: A. Materials shall be supplied as specified herein, and shall be in accordance with the applicable NEMA, ANSI, IEEE, IPCEA, ASTM Standards, NEC, and the Standards of the Underwriter's Laboratory. 1.03 CONTRACT AWARD: A. The Owner will award one (1) Contract for the purchase of one (1) or two (2) Power Transformer(s) of the Base Bid, or the Alternate Bid, as deemed in the best interest of the Owner. The following dates represent the proposed schedule for this Contract: April 15, 2026 Bid Opening April 29, 2026* Owner Awards Contract April 2, 2029 + Delivery and Offload of Power Transformer April 17, 2029 + Field assembly and testing complete * Date subject to change. P:A04\285\09\1D.)cASpPc\X9`arrr\Hutchins,on MN 11wr X9`arrr Pland Spec 428.509.docx GPI 2 + Contract Price deductions (liquidated damages) apply to these dates. Delivery of the transformer is desired to be no earlier April 2, 2029 and no later than August 31, 2029. Based on current material availability, both later and earlier delivery dates will be considered by the Owner. 1.04 SUBMITTALS: A. In addition to any Drawings and data submitted with the bid, the Contractor, after award of the Contract and before proceeding with the manufacture of the material, shall furnish the Engineer electronic copies of all design calculations, data sheets and Drawings covering the design and installation of the material for approval. B. The Contractor shall submit structural details and Drawings of the transformer outline, schematics, and wiring diagrams for approval. All Drawings shall be approved prior to fabrication. C. The Contractor shall be responsible for all Drawings required to fully document the function of all equipment internal to the control panels. The Contractor shall also note external equipment connections on the wiring diagrams. D. The Contractor shall supply to the Engineer an electronic copy in .pdf and an AutoCAD compatible format of each of the above -mentioned Drawings for all submittals. E. Drawings submitted shall be in 11" x 17" format. F. Drawings shall be transmitted with a cover letter and such letter shall indicate the submittal numbers, Drawings included in transmittal, and date sent. G. Approval of final Contractor's Drawings or data by the Engineer shall not relieve the Contractor of any part of his responsibility to meet all the requirements of this specification or as to the correctness of his Drawings and data. Further, approval of the Engineer does not relieve the Contractor of responsibility for the adequacy of the design. H. Shop Drawings for all material (including outline, BOM, and nameplate) shall be submitted within 26 weeks of award. All control wiring shop drawings shall be submitted within 52 weeks of award or 70 weeks prior to delivery (whichever is sooner). L Allow 2-3 weeks for the Engineer's review of the shop Drawings. J. See the Technical Specifications for additional submittal requirements. 1.05 INSTRUCTION MANUALS: A. In addition, the Contractor shall, under separate cover, furnish: P:A04\285\09\1D.)cASpPc\X9`arrr\Hutchins,on MN 11wr X9`arrr Pland Spec 428.509.docx GPI 3 1. Three (3) copies of instruction manuals, 2. Three (3) copies of certified "as -built" drawings, and, 3. Electronic versions of drawings in AutoCAD format and manuals in PDF format. B. The instruction manual shall contain a list of recommended spare parts. 1.06 SHIPPING AND DELIVERY PROCEDURES: A. The Bid(s) shall include F.O.B to the transformer pad at the Project location in Hutchinson, MN. The Project site address is as follows: Plant 1 Substation 44 41h Avenue N Hutchinson, MN 55350 B. Contractor shall notify the Owner when equipment is ready for shipment at least seven (7) days prior to delivery. In addition, seller shall advise the Owner of method of shipment, projected routing and estimated time in shipment. C. Contractor shall notify the Engineer by telephone when equipment is ready for shipment, AT LEAST 48 HOURS PRIOR TO DELIVERY. D. Title to the equipment shall pass to the Owner upon acceptance testing and checkout of the equipment and receipt of all required documentation. E. Deliveries Accepted: Monday -Friday, 8:00 AM — 3:00 PM, working days only. F. Contractor shall also coordinate delivery in advance with the Owner's substation construction Contractor to ensure that site preparations are complete and the Contractor can schedule to be on -site during delivery of the equipment. G. The Contractor shall coordinate delivery locations with the Owner and Engineer. H. The transformer must adhere to the size constraints laid out in the technical Specifications. L The seller shall investigate all limitations in regard to shipping and offloading the equipment and include the costs for such limitations in the Bid. The transformer shall be shipped as completely assembled as transportation limits allow. J. The transformer shall be shipped on a cushioned low -boy truck recently inspected and determined to be 100 percent operable, or other means agreed to by Owner. If rail delivery is used, the Contractor shall furnish transportation and loading of transformer from the appropriate rail siding to the job site. P:A04\285\09\1D.)cASpPc\X9`arrr\Hutchins,on MN 11wr X9`arrr Pland Spec 428.509.docx GPI 4 K. A minimum of two (2) separate three -directional impact recorders shall be installed on the truck, railroad car, or any other means of transportation for the transformer during the entire shipping process. The impact recorders shall be mounted on the truck, railcar, or other transportation means prior to shipment. Correct operation of all impact recorders shall be confirmed before shipment leaves the factory. Impact recorder results shall be provided to the Engineer, in an electronic file format via E-mail. L. The transformer shall be shipped with the vacuum/pressure gauges installed and connected. Prior to shipment, the seller shall affix signed and dated weatherproof tags to the vacuum/pressure gauges listing the gauge readings, the ambient temperature, and the barometric pressure at the time of reading. Transformer shall be shipped with a dry -air or dry nitrogen sealed tank oil preservation system to assure positive pressure. M. Prior to shipment, all gauge and indicator glass shall be thoroughly cleaned and covered with non -adhesive shipping protectors. N. Insulating oil, if shipped separately, shall be delivered to the construction site F.O.B. destination, freight prepaid. For transformers shipped dry, oil shall be delivered by tank truck. For transformers shipped oil filled, any make up oil of quantities less than 1,000 gallons shall be provided in 55 gallon non -returnable drums. O. If the transformer is shipped without oil, the transformer Contractor shall include in their base bid price the cost of vacuum oil filling the unit in the field. P. Bushings shall be shipped in crates suitable for long term storage, either in an upright position or at an incline as specified by the manufacturer. These storage requirements shall be clearly marked on the shipping container. 1.07 INSURANCE REQUIREMENTS: A. General - The Contractor shall secure and maintain such insurance policies which will protect that Contractor and unless otherwise specified, the Owner and its agents, from claims for bodily injuries, death or property damage, which may arise from operations under this Contract whether such operations be by the Contractor or anyone employed directly or indirectly by them. The Contractor shall not commence work under this Contract until the Contractor has obtained all insurance required herein and such insurance has been approved by the Owner. The Contractor shall deliver to the Owner executed copies of all policies or a certificate of insurance. No policy shall be canceled until thirty (30) days after notice of cancellation is given to the Owner in writing. The Contractor agrees to hold harmless, indemnify and defend the Owner and its agents from all loss and damage, including damage to person or property, arising from any act by, or negligence of, Contractor or its Subcontractors or the officers, agents, or Employees of either while engaged in the performance of this Contract, or while in or about the building or premises, or rising from accident or any injury not caused by act of Owner or P:A04\285\09\1D.)cASpPc\X9`arrr\Hutchins,on MN 11wr Xt'mr Pland Spec 428.509.docx GPI 5 Owner's agents, its agents or servants, or anyone employed by Owner, other than this Contractor, to any Contractor or officer, agent, or Employee of a Subcontractor while engaged in or about the performance of this Contract, or while in or about Owner's premises, or arising from liens or claims for services rendered or labor or materials furnished in or for the performance of this Contract. Coverages and Limits: The Contractor shall provide insurance to include a minimum of the following coverages and associated limits: Coverage Worker's Compensation Employer's Liability 2. Comprehensive General Liability - Combined Single Limit 3. Automobile Liability - Combined Single Limit 4. Umbrella (Excess) Liability Limits Statutory $500,000 each Employee $500,000 each disease $500,000 each accident $1,000,000 each occurrence $2,000,000 aggregate $1,000,000 each occurrence $2,000,000 each occurrence Additional Insured: The Owner, Engineer, and each of their employees, officers or agents shall be named as an additional insured under the prime Contractor's insurance policies and the Owner and Engineer shall be listed as an additional insured on all certificates of insurance. Owner: Hutchinson Utilities Commission its employees and officials 225 Michigan Street SE Hutchinson, MN 55350-1905 Engineer: DeWild Grant Reckert and Associates Company dba DGR Engineering 1302 South Union Street Rock Rapids, IA 51246 C. Casualty Insurance: Except when the risk of loss of the Equipment is with Owner, Contractor shall maintain on the Equipment insurance against loss or damage by fire, lightning and all other risks covered by the so-called extended coverage insurance endorsement in an amount equal to the full insurable value of the Equipment. Upon the request of Owner, Contractor shall deliver to Owner a certificate of insurance evidencing the insurance required by this section. P:A04\285\09\1D.)cASpPc\X9`arrr\Hutchins,on MN 1'wr X9`arrr Pland Spec 428.509.docx GR 6 1.08 WARRANTY: A. Contractor shall furnish a standard warranty package with the material. B. The warranty shall be in effect sixty (60) months from date of energization. C. Shall be comprehensive, without deductibles, and shall cover all equipment furnished by Contractor, whether or not it was manufactured by the Contractor. D. Warranty shall be a 60-month in/out warranty, including, but not limited to, the following: 1. Removal of transformer from service. 2. Disconnecting primary and secondary conductors and control cables. 3. Draining of oil. 4. Loading, hauling and delivery of transformer to repair facility. 5. Inspection and repair of the transformer. 6. Loading, hauling, and delivery of the transformer to the Owner's site. Warranty shall be extended for the time the transformer is out of service for repairs. 7. Unloading transformer and filling oil. 8. Reconnecting primary and secondary conductors and control cables. 9. Completing all necessary field-testing services. E. All repair parts, labor, and travel expenses necessary for repairs at the job site shall be included. F. A warranty certificate shall be provided in the instruction manual identifying the warranty expiration date and any special terms or conditions. 1.09 TERMS AND CONDITIONS: A. The Bidder is invited to attach their standard patent protection and liability limitation conditions, but shall not include any other terms and conditions to this bid. Any terms or conditions submitted with the Bid other than the terms or conditions herein listed shall be grounds for disqualification of bid. All additional costs required to meet this specification shall be deemed to be included in the base price. * * * END OF SECTION P:A04\285\09\1?.)cASpPc\X9`arrr\Hutchins,on MN 11wr X9`arrr Pland Spec 428.509.docx CAS 7 TECHNICAL SPECIFICATIONS PART 1 - GENERAL 1.01 SCOPE: A. The Advertisement for Bids, Instructions to Bidders, Bid Form, and General Requirements of the Contract are hereby made part of this Section. B. Work under this Section includes supplying, assembling testing and completing field services of the power transformer(s) as herein specified. 1.02 PAYMENT: A. Payment shall be at the Contract unit prices as shown on the Bid Form. B. Payment schedule shall be as defined in the Material Agreement. C. Purchase Price Adjustment: 1. The Contract price of the power transformers shall be adjusted to reflect the difference between actual transformer test losses and the guaranteed transformer losses submitted with the Bid. 2. The adjustments shall be made in accordance with the per kW "cost of losses" submitted. 3. No adjustment in Contract price shall be made if both test losses are less than the guaranteed losses. 4. The load and no-load losses will be evaluated independent of each other. a. If one (1) of the loss factors meets or is below the guaranteed losses the resultant evaluation assessment will be zero (0) and no credit will be added to the other loss evaluation assessment. 5. Reported losses shall be tested atthe ONAN base rating of each transformer. Winding losses shall be corrected to 75°C; no-load losses shall be reported at 20°C. 1.03 DRAWINGS AND MANUALS A. Approval Drawings: 1. Submit as electronic files in AutoCAD and .pdf compatible formats via e- mail to the Engineer. P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl_Spec 428509.docx Tr i 2. Drawings shall be no larger than 11" x 17" 3. Drawings and instructions shall be submitted to the Engineer prior to manufacturing of each transformer. B. Final Drawings and Images: 1. Furnish three (3) paper sets and one (1) electronic .pdf and AutoCAD files of the following: a. Nameplate drawing. b. Outline of main tank and associated equipment. C. Outline of air terminal chamber. d. Control schematics and wiring diagrams of all equipment. e. Connection diagrams. f. Outline of arresters and bushings. g. Instruction books for transformer and all equipment. 2. Provide maintenance schedule of all the transformer components. The Contractor shall furnish a complete schedule of the maintenance items. The schedule shall state how often and what steps shall be performed during maintenance. 3. Furnish all final Drawings no later than ten (10) days following the final test of equipment. 4. Submit electronic files on a flash drive or via a secure cloud file sharing service. 5. High resolution digital color photographs of the core and coils before installation in the transformer tank shall be taken from each side, each end, and the top for all transformers. Photos shall be submitted to Engineer after assembly of core and coils. Prints of photos shall be included in each instruction book furnished. Pictures shall also be provided to the Engineer promptly after being taken. C. All drawings, manuals, nameplates, including nameplates for auxiliary devices shall be printed in English. P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl_Spec 428509.docx Trs 2 PART 2 - PRODUCTS 2.01 SERVICE CONDITIONS AND STANDARDS: A. The transformers shall be newly manufactured units and comply with and meet or exceed all applicable standards of ANSI and NEMA. The latest revision of these standards shall apply and are not limited to the following specific standards. B. The transformers shall be designed and built to meet the most recent requirements outlined in IEEE C57.12.00 and IEEE C57.12.90. C. The transformers covered by this specification, shall meet the Short -Circuit Qualification Requirements given in ANSI Standard C57.12.90 entitled "Distribution and Power Transformer Short -Circuit Test Code", prepared by IEEE Transformer Committee as an amplification of ANSI Standard C57.12.00, Section 7, entitled "Short -Circuit Characteristics". The bidder shall submit, with the Bid, certified short-circuit test data for a transformer of the same manufacturer, type and style, with similar size and voltage ratings. D. The transformer oil supplied with the transformers, covered in this specification, shall comply with the most recent version of ASTM D3487, "Mineral Oil Used in Electrical Apparatus". E. The design of the equipment must conform to current OSHA and NESC regulations and requirements. F. In the event of a conflict between industry standards and this specification, the Contractor shall notify the Engineer and secure clarification resolving the conflict before proceeding with the work. G. The equipment shall be designed for satisfactory service for the ice and wind loads of NESC heavy loading district. H. The equipment shall be suitable for outdoor service at an elevation of not more than 3,300 feet above sea level in a climate with ambient temperatures ranging from -400 C to +400 C. I. The equipment shall be designed to withstand the seismic loads as defined and calculated in IEEE 693 "IEEE Recommended Practice for Seismic Design of Substations (current revision)" for the final transformers at the installation location. The equipment shall continue to perform their intended function during and after such seismic stresses. J. All components shall be readily available in the United States and identifiable by manufacturer's name and part number. P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl_Spec 428509.docx Trs 3 2.02 TRANSFORMER RATINGS: A. The general purpose shall be for use as an outdoor, three phase, 60 Hz, oil immersed transformer. B. The transformers shall be 115 kV Delta to 13.8 Y/7.97 kV with the following ratings: High Voltage Low Voltage H-Winding X-Winding Basic Insulation Level 550 kV 110 kV (BIL) Basic Insulation Level 110 kV (BIL) of Neutral Winding MVA @ Base: 25 550C ONAN Alt: 22.3 Winding MVA @ Base: 33.33 550C ONAF (1st Stage) Alt: 29.7 Winding MVA @ Base: 41.67 550C ONAF (2nd Stage) Alt: 37.2 Same as Winding MVA @ Base: 28 H-Winding 650C ONAN Alt: 25 Winding MVA @ Base: 37.33 650C ONAF (1st Stage) Alt: 33.33 Winding MVA @ Base: 46.67 650C ONAF (2nd Stage) Alt: 41.67 Winding Connections Delta Wye System Neutral Grounded C. The high voltage winding shall be equipped with full capacity de -energized high voltage taps of ± two (2) 2-1/2 percent above and below both high voltage ratings. D. The transformers shall be designed for operation within standard excitation limits. Noise level shall not exceed 3 DB below NEMA standard average audio levels at rated full nameplate rating and any operating position with all fans on. E. Standard impedance shall be according to ANSI standard C57.12.10. P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl Spec 428509.docx Trs 4 F. No current path components, ancillary equipment or other design aspects shall limit use of full peak -load capabilities as defined in these ANSI loading limits. 2.03 CONTROL POWER: A. Control power for the rapid rise relay shall be ungrounded 125 VDC. All equipment shall be capable of being operated at 139.9 VDC when the station battery is being equalize charged. The equipment control power shall have the rating to withstand swing from 0 to 139.9 VDC. 2.04 AUXILIARY POWER: A. All auxiliary equipment shall be single phase and shall be capable of accepting a 120/208/240 VAC single phase, 60 HZ source. 2.05 SURGE PROTECTION AND GROUNDING: A. Surge arresters, as specified below, shall be supplied and installed on each phase and mounted to the transformer tank. Arresters shall be furnished for both the high and low side. The low side surge arresters shall be mounted above the X bushings. Arresters shall be light gray in color. Arrester ratings shall be as follows: (3) High side - 96 kV metal oxide varistor (MOV), with MCOV rating of 76 kV, station class arresters. (3) Low side - 12 kV metal oxide varistor (MOV), with MCOV rating of 10.2 kV, station class arresters. Furnish Ohio Brass or ABB, no equal. B. A copper ground bar (1/4" x 3" minimum) shall be provided for connecting the surge arresters to the ground grid. The bar shall be mounted to the tank and routed from the bottom of the tank to the surge arresters and back to the bottom of the tank in a looped configuration. The copper bar shall have holes for connecting a 2-hole NEMA pad at each end and at each surge arrester. The copper ground bar shall be on both the high and low sides. The system neutral shall be connected to the low side ground bar with 4/0, 19 strand class B copper cable (bare). The copper ground bar for each side shall terminate at a grounding pad. The arresters shall be tied to the copper ground bar with 4/0, 19 strand class B copper cable (bare). C. Grounding pads shall be located diagonally opposite each other on the transformers. Each pad should be suitable for a NEMA 2-hole grounding terminal. The only additional ground connections required in the field shall be the installation of ground connectors to the substation ground grid. P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl_Spec 428509.docx Trs 5 2.06 COOLING EQUIPMENT: A. Cooling equipment controls, cable and mounting accessories shall be provided, ready for connection of the power supply. B. The transformers shall be equipped with fans and radiators. C. The fan power supply shall be 240/208 volts AC single phase. D. All conduit, wiring, and automatic controls shall be pre -wired at the factory and controls located in the transformer control box. E. The controls shall include a 240/208 volt power supply breaker, control contactor, "manual" -"off' -"automatic" switch, and a loss of voltage relay with one set of contacts open when the relay is energized for use in relaying "loss of voltage" signal to the transformer monitor. 27-AC Main Loss of AC = SEL-2414, Customer TB F. Furnish an AC current sensor on each stage of fans, to signal to a remote location when the fans are operating. 4X-1 — Stage 1 Fans Running = SEL-2414, Customer TB 4X-2 — Stage 2 Fans Running = SEL-2414, Customer TB G. Cooling selector control switches shall be included: 43A-1 — Stage 1 Cooling. MAN -OFF -AUTO = SEL-2414, Customer TB 43A-2 — Stage 2 Cooling. MAN -OFF -AUTO = SEL-2414, Customer TB 43C — Cooler Sequence. STAGEI-STAGE2 = SEL-2414, Customer TB H. An alarm for loss of AC Power for each cooling system stage shall be provided. 27-1 Stage 1 Fans Loss AC = SEL-2414, Customer TB 27-2 Stage 2 Fans Loss AC = SEL-2414, Customer TB L Sensing for the fan control shall be from the hot spot winding temperature indicator and via the SEL-2414 output contacts driven by the winding temperature RTD and top oil temperature RTD inputs. J. Forced air cooling fans shall have plug-in type connectors. Furnish Krenz Vent, California Turbo, or Waukesha Electric, no equal. K. Removable radiators shall have oil tight valves on the tank at the inlet and outlet connections of each radiator. Inlet and outlet flanges shall be sealed with steel plates for shipment. Removal of radiator shall not require draining of oil from any device other than the equipment being removed. Radiators shall be fully assembled and attached to the tank during testing at the factory, to assure proper alignment prior P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl_Spec 428509.docx Trs 6 to shipping. All radiators shall be interchangeable and hot dipped galvanized. Each radiator section shall have a drain valve (with end -plug) and a top fill plug. 2.07 CURRENT TRANSFORMERS: A. Current transformers shall be factory installed. B. The current transformers shall be multi -ratio with five (5) primary taps and relaying accuracy class of C800, with fully distributed windings where the turns are equally spaced around the circumference of the core and a thermal rating of 2.0. Available ratios shall be in accordance with ANSI/IEEE C57.13. C. Furnish CTs as follows: Bushings CT Position Ratio Accuracy H1, H2, H3 1 1200/5 MR C800 2 1200/5 MR C800 X1, X2, X3 1 2000/5 MR C800 2 2000/5 MR C800/0.15SB1.8 MA XO 1 2000/5 MR C800 D. Separate CTs shall be provided for the winding hot spot temperature indication circuit and the LTC line drop compensator circuit. E. Acceptable CT manufacturers are ABB, Associated Engineering, General Electric, or Meramec, no equal. 2.08 BUSHINGS: A. Bushings shall be in accordance with ANSVIEEE Standard C57.19.01-2000. B. Bushings shall be porcelain ANSI No. 70 light gray color. Only ABB, PCORE, or WARCO bushings are acceptable, no equal. C. High voltage bushings shall be porcelain, cover mounted, and installed in Segment 3. A NEMA 4-hole aluminum terminal pad shall be provided for each of the bushings. D. Low voltage bushings and the neutral (XO) bushing shall be side tank mounted inside the air terminal chamber (ATC). Terminals shall be standard NEMA 4 bolt, 1-3/4 inch spacing. Bushings shall be suitable for copper -cable connections. E. Bushing general requirements and testing shall conform to ANSPIEEE Standard C57.19.100. Bushings shall have a C1 power factor of <0.5% and a C2 power P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl_Spec 428509.docx Trs 7 factor of <1.0% at 20°C. C1 and C2 power factor values and capacitance shall be indicated on the bushing nameplate. A certified test report shall be supplied for each bushing. F. The transformers shall be tested with the bushings that will be shipped with the units. Test bushings are not allowed. G. Busbar extensions shall be provided from the low -side bushings in the ATC to serve as a termination point for the external power cables to be installed by Others (up to a minimum of (4) 1000 mcm Cu cables per phase). These extensions shall be configured to provide ample clearance between the arresters and the cable shield grounds on the power cable terminators being installed by Others. The arresters shall not be used to support the cables and shall be mounted above the terminations to avoid clearance issues. The bus shall be sized for 125% of full transformer capacity, and shall be fixed with the necessary support insulators, as required. Terminals shall be standard NEMA 4 hole, with 1-3/4 inch spacing for external power cable terminations. H. The arresters (mounted above the low -side bushings) shall be factory connected to the low -side bushings or busbar with a 4/0, 19 strand class B copper cable (bare) and 2-hole NEMA pads. Bus -bar extensions shall be capable of handling connections of twelve (12) separate power cables for each phase and neutral. I. Bushing busbar supports shall be furnished. Busbar supports shall attach to the busbar in an independent hole other than the cable connection holes. Busbar support mounting shall be constructed of insulating material with adjustable means to increase or decrease tension. Busbar supports shall be attached to the air terminal chamber ceiling and any cross member supports required shall be mounted off the air terminal chamber walls. Busbar support components shall be designed to be easily removed and reassembled for assembly of cable to the busbar if needed. Other support means may be considered with approval by the Engineer. 2.09 TEMPERATURE SENSING AND RELAY EQUIPMENT: A. The manufacturer shall provide a transformer monitor to be used for temperature monitoring, automatic cooling control, and alarm collection. Unit shall include fiber-optic, serial, and Ethernet option, and 125 VDC control power. Unit will require PT100 type RTD's for top oil temperature, bottom oil temperature, ambient temperature, and winding temperature. B. Manufacturer shall recommend settings for control/alarm and unit shall be completely wired, programmed, and implemented at the factory. C. Provide SEL 2414, part number 241421ADA9XDACA1130, Item Number 241444YHR, part number to be verified by manufacturer for compatibility with other supplied equipment. 1. Slot A = 125-250 Vdc (120-240 VAC) 1 125 VDC/VAC P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl_Spec 428509.docx Trs.s OUT101 = Fans Stage 1 OUT102 = Fans Stage 2 OUT103 = Alarm = Customer TB IN101 = 4X-1 Stage 1 Fans Running IN102 = 4X-2 Stage 2 Fans Running 2. Slot B = Port 1: Ethernet (Single 10/100 Base-T), Port 2: Fiber -Optic Serial, TRIG Connector, Port 3: EIA-232, SEL Protocols, Modbus, DNP3 3. Slot C = 14DI (125VDC/VAC) IN301 = 27-1 Stage 1 Fans Loss of AC IN302 = 27-2 Stage 2 Fans Loss of AC IN303 = 27-AC Main Loss of AC IN304 = 27-L LTC Ctrl Loss of AC IN305 = 27-M LTC Motor Loss of AC IN306 = 27-5 Sudden Pressure Loss of DC IN307 = 43A-1 Stage 1 Cooling Auto IN308 = 43A-1 Stage 1 Cooling Man IN309 = 43A-2 Stage 2 Cooling Auto IN310 = 43A-2 Stage 2 Cooling Man IN311 = 43C Cooler Sequence Stage 1 IN312 = 43C Cooler Sequence Stage 2 IN313 = Spare IN314 = DCB Alarm 4. Slot D = 10 RTD RTD1 = Winding Temp (X2) RTD2 = Main Tank Top Oil Temp RTD3 = Main Tank Bottom Oil Temp RTD4 = LTC Tank Top Oil Temp RTD5 = Ambient Air Temp RTD6 = Spare RTD7 = Spare RTD8 = Spare RTD9 = Spare RTD10 = Spare 5. Slot E = 14DI (125VDC/VAC) IN501 = 26Q1-1 Main Tank Hot Oil Alarm IN502 = 49T1-3 Hot Spot Alarm IN503 = 71Q1-1 Main Tank Low Oil Level Alarm IN504 = 63PR1 Main Tank Pressure Relief IN505 = 63P/L N2 Low Pressure IN506 = 63P/H N2 High Pressure IN507 = 63P/E N2 Cylinder Low IN508 = 26Q2-1 LTC Tank Hot Oil Alarm IN509 = 71Q2-1 LTC Tank Low Oil Level Alarm IN510 = 63PR2 LTC Tank Pressure Relief P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl_Spec 428509.docx Trs 9 IN511 = 63X1-1 Main Tank Sudden Pressure Alarm IN512 = 71Q1-3 Main Tank High Oil Level Alarm IN513 = LTC Max Raise IN514 = LTC Max Lower 6. Slot Z = 4DI (125VDC/VAC) / 3 DO (Standard 2 Form C and 1 Form B) IN601 = LTC Controllers Alarm IN602 = LTC Lockout Alarm IN603 = 43T-2 LTC in Local IN604 = 43T-3 LTC in Manual OUT601 = Spare OUT602 = Spare OUT603 = Spare 7. Chassis = Vertical Panel Mount TOO LED = Alarm TOLLED = Liquid Temp T02_LED = Winding Temp T03_LED = Oil Level T04_LED = Pressure Relief T05_LED = RTD Failure T06 LED = Loss of AC PBOl_LED = Running PBO1 = FANS STAGE 1 #Manual Exercise timer PBOlB_LED = Blocked PB02_LED = Running PB02 = FANS STAGE 2 #Manual Exercise timer PB02B_LED = Blocked PB03_LED = Enabled PB03 = STAGE 1 EXERCISER PB03B_LED = Disabled PB04 LED = Enabled PB04 = STAGE 2 EXERCISER PB04B LED = Disabled D. A standard magnetic type liquid level gauge, with 6-inch diameter dial shall be provided for the main tank (71Q1). Gauge face to be graduated to indicate critical low, low, 25' C, and high oil levels. Gauge shall have three (3) sets of SPDT contacts, one (1) for critical low oil level for tripping, one (1) for low oil level alarming, and one (1) for high oil level alarming. All alarm leads shall connect via a quick disconnect connector routed through conduit and landed on terminal blocks located in the transformer control cabinet. Provide Qualitrol or Messko, no equal. 71Q1-1 Low Oil Level Alarm = SEL-2414, Customer TB 71Q1-2 Low Oil Level Trip = Customer TB 71Q1-3 High Oil Level Alarm = SEL-2414, Customer TB P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl_Spec 428509.docx Tr i o E. Liquid temperature indicator shall be furnished for the main tank (26Q1) and LTC tank (26Q2). Indicator shall be Qualitrol or Messko (no equal) with 6-inch diameter dial. Gauge shall have two (2) sets of SPDT contacts, one (1) for alarming and one (1) for tripping. Gauge shall have a manual resettable drag hand. Switch leads shall be connected with a quick disconnect connector and routed through conduit to the transformer control cabinet. The manufacturer shall preset alarm and trip set points. 26Q1-1 Hot Oil Alarm = SEL-2414, Customer TB 26Q1-2 Hot Oil Trip = Customer TB 26Q2-1 Hot Oil Alarm = SEL-2414, Customer TB 26Q2-2 Hot Oil Trip = Customer TB F. Winding hot spot temperature indicator (49T) shall be furnished. Indicator shall be Qualitrol or Messko (no equal) with 6-inch diameter dial. Gauge shall have four (4) sets of SPDT contacts, two (2) for fan control, one (1) for alarming and one (1) for tripping. Gauge shall have a manual resettable drag hand. Switch leads shall be connected with a quick disconnect connector and routed through conduit to the transformer control cabinet. The manufacturer shall preset alarm and trip set points. 49T1-1 Hot Spot Stage 1 Fans = Stage 1 Fans 49T1-2 Hot Spot Stage 2 Fans = Stage 2 Fans 49T1-3 Hot Spot Alarm = SEL-2414, Customer TB 49T1-4 Hot Spot Trip = Customer TB 2.10 RAPID PRESSURE RISE AND RELIEF DEVICES A. A rapid pressure rise relay (63X1) shall be furnished and prewired to a seal -in relay located in the transformer control box. The rapid pressure rise relay shall be flange mounted to a shut off valve. The seal -in relay shall have a 125 VDC operating coil with a minimum of three (3) normally open contacts for sealing -in, target indication, and trip. A reset button shall also be provided. Provide Qualitrol 900 Series Rapid Pressure Rise Relay and 909-300 seal -in relay or Engineer approved equal. An alarm for loss of 125VDC power shall be provided. 63X1-1 Main Tank Sudden Pressure Alarm = SEL-2414, Customer TB 63X1-2 Main Tank Sudden Pressure Trip = Customer TB 27-5 Sudden Pressure Loss of DC = SEL-2414, Customer TB B. A pressure relief device with standard alarm switch and a visual indicating flag for each oil filled compartment shall be supplied for the main tank (63PR1) and LTC tank (63PR2). One (1) set of normally open contacts shall be provided for signaling operation to SCADA. Switch leads shall be connected with a quick disconnect connector and routed to the control cabinet. Provide Qualitrol XPRD Pressure Relief Device or Engineer approved equal. 63PR1 Main Tank Pressure Relief = SEL-2414, Customer TB 63PR2 LTC Tank Pressure Relief = SEL-2414, Customer TB P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl_Spec 428509.docx Tr i i C. The Contractor shall supply and install steel or aluminum piping to direct the flow of oil from each pressure relief device to a point 1 foot above the base of the transformer. Support the piping as required. Piping and supports shall be painted to match the color of the transformer. 2.11 OIL AND OIL PRESERVATION: A. Oil preservation shall be accomplished by means of automatic nitrogen gas equipment with alarm contacts for low nitrogen gas cylinder and high/low transformer tank pressure and with gas sampling capability. An enclosure with a condensation heater shall be furnished to protect oil preservation equipment. Furnish pressure vacuum gauge for tank pressure and a pressure gauge for the gas cylinder. Furnish inlet and outlet lines from the transformer tank gas space to the nitrogen gas system. Each line to be furnished with a shut-off valve. 63P/L N2 Low Pressure = SEL-2414 63P/H N2 High Pressure = SEL-2414 63P/E N2 Cylinder Low = SEL-2414 B. Oil shall be Type 11(oxidation inhibited) mineral insulating oil of petroleum origin for use as an insulating and cooling agent in power transformers with 0.3% inhibitor content. C. The oil shall meet all applicable requirements of Type II mineral oil as defined in the latest revision of ASTM Standard D3487-87A. Transformer nameplate shall contain manufacturer's certification that the insulation oil used meets all federal requirements for PCB concentrations. A certified test sheet shall be furnished to the Engineer with the shipment. D. A pressure -vacuum gauge shall be provided on the main tank. Also provide a pressure -vacuum bleeder for the main tank. E. The Contractor shall furnish a certified report at the time of delivery of the transformer indicating compliance with all regulations concerning polychlorinated biphenyl's (PCBs). F. The transformer shall be furnished complete with mineral insulating oil. 2.12 CORE AND COILS: A. The core shall be constructed using low loss cold -rolled grain -oriented silicon steel. Steel is to be cut to width, annealed, and coated with an inorganic insulating material. B. Cores shall be constructed using stepped circular cross -sections with fully mitered step lap joints for all windings except the series winding or preventative Power Transformer if used. No section of the core assembly shall be bolted together for support. Core legs shall be bonded with epoxy cement after assembly. P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl_Spec 428509.docx Tr 12 C. The core shall be insulated from its support frames and connected to ground at only one (1) point. The core ground strap is to be brought out through the tank cover and grounded using a low voltage bushing and a small JIC box or other suitable mechanical protection. D. All windings shall be made of copper rectangular magnet wire with thermally upgraded paper used for turn to turn insulation. Continuously transposed conductor can be used where appropriate. The conductor is to be tested prior to insulation wrapping through the use of burr detectors or similar device to ensure that there are not any burrs or nicks in the conductor. The insulating paper shall be applied in either single or multiple strands in such a manner that there is a 30% overlapping of the paper surfaces. Sufficient tension shall be maintained during the insulation application to prevent loose wraps. E. Winding cylinders shall be made from a single piece of high density material as manufactured by EHV Weidmann, Lignostone, or Engineer approved equal. All coil spacers shall be keyed to the winding cylinder and to vertical key strips on the outside of the coil. F. Coils shall have their full circumference supported by the frame assembly. Coil supports and full circumference clamping rings shall be fabricated using high density material as manufactured by EHV Weidmann, Lignostone, or Engineer approved equal. G. The transformers, including all core and coil assemblies, shall be power class, circular core/coil design. The high side shall be disk wound and the low side shall be disk or helical construction. Rectangular core and coils are not acceptable for these transformers. H. Core and coils shall be dried using a "vapor phase" system prior to filling. I. The regulating winding shall be fully distributed and be electrically independent from or placed in a separate winding tube from the high and low voltage windings. For units smaller than 30 MVA base with a LV of 20 kV or less, a partially distributed winding may be considered by the Engineer if sufficient evidence is provided that the unbalanced short-circuit forces will be acceptable. J. The core and coil assembly shall be dry enough to obtain a power factor of 0.5% or less at 20°C. 2.13 MECHANICAL FEATURES — MAIN TANK: A. The de -energized tap changer on the high voltage side shall have the operating handle(s) brought out to the side of the tank with provision for padlocking. B. A magnetic liquid level gauge with three -step normally open contacts shall be furnished. The first step shall alarm on a low oil level condition, with the second step initiating a breaker trip upon a critical low oil level, and a third shall alarm on P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl_Spec 428509.docx Tr 13 a high oil level condition. A minimum of two (2) contacts per stage shall be wired and accessible in the transformer control cabinet. Manufacturer shall recommend settings for the transformer supplied and implement these at the factory. C. A tank pressure gauge shall be provided to monitor nitrogen gas pressure in the tank. A minimum of two (2) individually adjustable, normally open alarm contacts associated with the pressure on the tank shall be included. Manufacturer shall recommend settings for the transformers supplied and implement these at the factory. D. A tank valve shall be provided to serve as drain valve, bottom filter press connection, and liquid sampling valve. E. A valve shall be furnished for top filter press connection. F. Provide lifting hooks on the tank, lifting eyes on the cover and provision for j acking. G. The transformer base shall have members forming a rectangle which shall permit rolling in the directions of the centerlines of the segments. The points of support of these members shall be located so that the safe angle of tilt of the base shall be at least 15' (degrees) from the horizontal with or without oil in the transformer. Arrangement for pulling the transformer parallel to centerlines of segments shall be provided in the base. A flat -bottom unit also may be furnished. H. The operational center of gravity and the center of the tank shall be clearly and permanently marked on all four (4) sides of the tank base to aid in setting the transformer on the foundation. I. The main tank cover shall be domed to ensure water runoff and welded to the tank. An inorganic gasket shall be permanently installed between the cover and the tank to prevent weld splatter from entering the tank. A minimum of two (2) manhole covers shall be provided with a raised rim to discourage entrance of moisture. Manhole covers shall have a handle and be of the bolt -on type. J. All seams and joints shall be welded on the inside and outside. The tank and radiators shall be designed to withstand an internal operating pressure of 8 psi with a margin of at least 25% over pressure. The tank and radiators shall be designed to withstand full vacuum. All external tank supports and stiffeners shall be box beam construction, continuously welded, and shall not be pressurized to provide sufficient support. K. A complete stainless steel instruction nameplate shall be furnished and mounted on the transformer. L. The surface shall be washed with an iron phosphate conversion with a chrome seal before priming and painting. P:A04\285\09\DocASpecAXfinr\Hutchinson MN Pwr Xfiur Planil Spec 428509.docx Tr 14 M. The exterior surface shall first be primed with a two-part zinc chromate epoxy primer. Then a force cured two-part urethane enamel topcoat shall be applied using plural component equipment that automatically measures and mixes the paint system. The exterior coating shall be a minimum of 3 mils thick and capable of meeting ANSI C5712.28. N. Tank finish shall be ANSI 470 gray. The top of the tank shall be coated with a nonskid surface. The tank bottom shall be covered with an asphalt undercoating. Extra touch-up paint shall be furnished with the transformer. Inside of the control compartment shall be painted white. O. The interior of the transformer tank, tank cover, and LTC compartment shall be coated with white oil resistant epoxy enamel compatible with transformer oil per ANSI 3455. The interior coating shall be a minimum of 3 mils thick. P. All auxiliary wiring shall be terminated in a cabinet mounted on the side of the transformer tank tentatively located in Segment 2. Final segment location to be coordinated with Engineer prior to transformer design and construction of the transformer. Cabinet shall be completely weathertight, gasketed, with a three point latching mechanism. Cabinet shall have swing doors with lock down in open position, padlockable in the closed position. All equipment shall be provided with marked terminal blocks for interconnecting wiring with remote control panels. A drill plate on bottom of control box shall be provided for conduit entrance. A copper ground bus shall be provided, tapped for grounding of current transformers, etc. Q. Bottom of control cabinet shall be 24" above base of tank. R. The tank and radiators shall be fabricated from steel with sufficient strength to withstand normal service stresses without distortion or damage. S. All joints in the tank and radiators shall be made oil tight and gas tight by welding inside and outside. Seams on all tank wall corners will NOT be acceptable. All tank seams shall be double welded (inside and outside) and be a minimum of 6 inches from any corner. T. All exterior wiring shall be placed in UV resistant weather-proof conduit, rigid or flexible as appropriate based on the applications. Conduit shall be securely attached to the transformer. U. The operating mechanism/control cabinet shall be rated NEMA 3S, dust tight, rain tight, and sleet and ice proof with a three-point latching mechanism. Provide anti - condensation heater(s) as required. V. The transformer shall be furnished with an air terminal chamber, containing the low side bushings, neutral bushing, and lightning arresters. The LV air terminal chamber shall be provided with hinged doors on front side for easy access and installation. The air terminal chamber shall have access removable covers/doors on the sides. The doors shall be completely weathertight, gasketed, and shall be P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl_Spec 428509.docx Tr 15 provided with a stainless steel or cast handle and three-point latching mechanism. The bottom of terminal chamber shall extend down to 30" above the base of the transformer. The terminal chamber shall be equipped with a removable plate for terminating conduits. The terminal chamber shall be tentatively installed in Segment 1 as defined by ANSI Standard C57.12.10. Final segment location to be coordinated with Engineer prior to transformer design and construction of the transformer. 1. Detailed drawings of the ATC shall be supplied. Drawing shall include at a minimum an elevation view, front door details, side cover/door details, handle latching mechanism, removable plate and gasketing. 2.14 LOAD TAP CHANGER: A. The LTC mechanism shall be tentatively mounted in a separate compartment in Segment 4 as defined by ANSI Standard C57.12.10 (not in the main tank), that will permit completely draining all the oil in the compartment without draining the oil in the main transformer tank. B. The tap changer shall provide voltage regulation of 10 percent raise, or lower, in (16) 5/8 percent steps, both raise and lower. C. The LTC compartment shall be capable of withstanding full vacuum in the main tank without damage to the LTC compartment or components. D. The LTC shall be vacuum type and shall be sized to fit the ampacity requirements of the transformer. 1. Vacuum type shall be Reinhausen Manufacturing, Inc. type RMV-II, no equal. A vacuum bottle protective circuit shall be provided with a set of contacts for alarm purposes with the RMV-11 tap changer. E. Tap changer shall consist of a motor operated tap changer. The tap changer shall also be provided with a weatherproof compartment for all control components needed for automatic LTC control, terminal boards, conduit entrance and circuit breaker for control power. F. The tap changer shall have full rated kVA taps above normal and current rating corresponding to full load current at rated voltage on all taps below normal voltage. Tap changer shall be designed to regulate the low voltage side and shall be installed in the LV winding. High voltage LTCs are not acceptable. G. The tap changer shall be rated for 500,000 operations before contact replacement. The tap changer motor shall be rated for 120/208/240 VAC single phase. H. The tap changer controller shall be digital with remote monitoring and control capabilities intended for a substation integration scheme, mounted inside the control cabinet. Furnish Beckwith type M-2001D. The unit shall be capable of P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl_Spec 428509.docx Tr 16 communicating in DNP 3.0 communications protocol. Furnish the Beckwith 5-2001D TapTalk® software that will be used to connect the unit via a remote laptop or other device(s). Also provide M-0329B backup control. The M-0329B shall be mounted in a cutout so the dials and lights on the unit are visible from the front panel of the transformer control cabinet. Alarm contacts for both units shall be wired to a SEL-2414 input. LTC Controllers Alarm = SEL-2414 The controller settings will be furnished by the Engineer for testing at the manufacturing facility. Provide the Engineer two (2) weeks notice prior to testing of the LTC controller settings. 2. The Contractor shall provide the Engineer with a brief report verifying testing has been completed, whether the settings are satisfactory for proper controller operation, and recommendations for final setting implementation and commissioning. L The tap changer controller shall be M-2001D-6-V-4S-20-C-0-D-0-0 equipped with the following accessories: Voltage test terminals. 2. Alpha -numeric Vacuum Fluorescent Display VFD. Option V. 3. Communications equipment. Front -panel local data port for connection to a portable computer, USB I.I. Include communication software for installation on Owner's computer. 4. Communications port (COM1-top) shall interface with fiber optic (ST) and RS-485. Option 4S. 5. Communications port (COM2-top) shall interface with standard RS-232. Option 20. 6. Ethernet port (COM3-top) shall be RJ-45 jack. Option C. 7. Communications protocol shall be MODBUS and DNP 3.0. Option 0. 8. Paralleling methods: DVar2 method. Option D. 9. Include a separate 43T-4 paralleling/independent toggle switch. Wire the independent position of the Beckwith to disable paralleling. Spare contacts of each position shall be wired to a customer terminal block. P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl_Spec 428509.docx Tr 17 J. Tap changer shall be equipped with the following accessories: 1. The Contractor shall furnish a dual column breather (DCB) or auto recharging dehydrating breather system to the LTC of the transformer. The system shall remove moisture from incoming air into the LTC tank. DCB shall be shipped as a single, integrated assembly along with accessories necessary for installation. The DCB controller shall have indicating LEDs of breather status and hardwired alarm contact to terminal block in primary control cabinet. Power for DCB shall be integrated into the 120/208/240 VAC supply for transformer and not require an independent power circuit. DCB Alarm = SEL-2414 2. Manual tap changing crank or handwheel. 3. Position indicator with drag hands and electric reset momentary switch. The reset switch shall be located in an easily accessible location in the control panel compartment. Indicator shall be located in a position that is easily seen by a person standing on the ground directly adjacent to the unit, with the control cabinet doors closed. 4. Interlock to prevent electrical operation with crank installed. 5. Current source for compensator. Provide an LDC-CT as required. 6. Liquid level indicator for LTC compartment (71 Q2) with two-step normally open contacts shall be furnished. The first step shall alarm on a low oil level condition, with the second step initiating a breaker trip upon a critical low oil level. A minimum of two (2) contacts per stage shall be provided. Manufacturer shall recommend switch settings for the transformer supplied. 71Q2-1 Low Oil Level Alarm = SEL-2414, Customer TB 71 Q2-2 Low Oil Level Trip = Customer TB 7. Drain and filter valves for LTC compartment. 8. LTC control cabinet shall be equipped with a 120 V, 20 A weatherproof receptacle. 9. LTC control cabinet shall be equipped with a door -activated LED light. 10. LTC control cabinet shall be provided with a positive temperature coefficient heater to minimize condensation. Provide High Voltage Supply 1030, or Engineer approved equal. Contractor shall determine quantity and size of heaters. 11. Static voltage sensing device. P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl_Spec 428509.docx Tr i 8 12. Non-resettable operation counter. 13. The operations counter and neutral position (unless using the DVar2 method) contacts shall be wired to the Beckwith. 14. 43T-1 Lower -Off -Raise switch for lowering and raising the tap changer. 15. 43T-2 Local -Off -Remote switch with spare contact for remote switch position indication located inside the transformer control cabinet. 43T-2 LTC in Local = SEL-2414, Customer TB 43T-2 LTC in Remote = Customer TB 16. 43T-3 Man -Off -Auto switch for switching control modes. Spare contacts for each position shall be wired to a SEL-2414 input. 43T-3 LTC in Manual = SEL-2414, Customer TB 43T-3 LTC in Auto = Customer TB 17. Provide terminal blocks and provisions for remote auto -manual switching and remote raise -lower switching, located inside the transformer control cabinet. Remote switches by Others. K. Provide all necessary selsyns and contacts to provide remote position indication. Furnish a solid state remote position indicator and transducers in the transformer cabinet (INCON 1250B). Also furnish a current loop interface (Beckwith M- 2025B) to connect the 0-1 mA output of the 1250B to the Beckwith M-2001D controller, which will provide tap position indication in the controller. Locate devices inside the transformer control cabinet. INCON shall be factory programmed. L. An alarm for loss of AC Power for the LTC control and motor shall be provided. 27-L LTC Ctrl Loss of AC = SEL-2414, Customer TB 27-M LTC Motor Loss of AC = SEL-2414, Customer TB M. The load tap changer mechanism is to be furnished with its own nameplate which fully describes the system. Items to be included, but not limited to, are manufacturer, model number, year of manufacture, maximum rated through current, type of mechanism, and the amount of oil (gallons). N. Minimum and maximum control cabinet heights above ground shall be 24 inches and 72 inches, respectively. Control cabinet shall have swing doors with lock down in open position, padlockable in the closed position. P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl_Spec 428509.docx Tr 19 2.15 CONTROL WIRING REQUIREMENTS: A. All taps of the multi -ratio BCTs shall be brought to an accessible shorting -type terminal block in the control cabinet. Shorting type terminal blocks shall be General Electric Type EB-27, no equal. B. All wiring shall be identified at the terminal blocks to designate its source and function. Terminal blocks shall be General Electric type EB-25 or equal. C. All wiring in the cabinet shall be neat in appearance. All control cable wires shall be labeled. Wires shall be terminated with ring type insulated lugs, with both lug and insulation securely crimped. D. All control circuits shall be protected with appropriately identified breakers or hinged knife blade disconnect switch and clip mounted fuses. E. Control and auxiliary circuits shall be wired with 412 AWG, minimum, switchboard wire. All current transformer wiring shall be 410 AWG, minimum, switchboard wire. All switchboard wire shall be XL or ETFE (Tefzel 750) insulated, stranded wire, type SIS. F. All alarm and auxiliary contacts shall be suitable for use on an ungrounded 125 VDC. The contacts shall be individually wired out to terminal blocks and shall be electrically isolated. G. All control wiring between compartments and/or cabinets shall be enclosed in metal raceways. 2.16 ACCEPTABLE MANUFACTURERS: A. Transformers from the following list of manufacturers only shall be furnished, unless written permission is obtained from the Engineer or Owner. 1. ABB Hitachi Power Grids Inc. 2. Delta Star Inc. 3. Prolec-GE Waukesha Inc. 4. WEG Transformers USA. 5. Or Engineer approved equal. P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl_Spec 428509.docx Trs 20 PART 3 - EXECUTION 3.01 TESTING AND REPORTS: A. All tests shall be made in accordance with the latest revision of ANSI Standard C57.12.00 for a Class 11 transformer and a certified test report in electronic `.pdf' and hard copy (one per manual) versions shall be provided. Any and all factory and field tests that are required by the manufacturer and are required so as not to void any part of the warranty, shall be made by the manufacturer and its personnel. Any and all costs as well as equipment required for and associated with these required tests shall be the responsibility of this Bidder. Standard tests include but are not limited to the following tests: Resistance measurements of all windings on the rated voltage tap and at the tap extremes. 2. Ratio tests on rated voltage connections and on all tap connections. 3. Polarity and phase -relation tests on rated voltage connections. 4. No load loss at rated voltages on rated voltage connections. 5. Exciting current at rated voltage on rated voltage connections. 6. Impedance and load losses at rated current on rated voltage connections and on the tap extremes. 7. Mechanical leak test on tank and coolers. 8. Applied potential tests. 9. Induced potential tests. 10. Impulse tests or production line impulse tests may be accepted as a substitute for the standard test if approved by the Engineer. 11. Insulation power factor test. Power factor test shall be made on each oil filled bushing, individual winding to ground, and between windings. The values of bushing and winding power factor shall not exceed 0.5 percent, when corrected to 20°C. 12. Winding temperature rise for each stage of cooling specified. Thermal images shall be taken during the stabilization of the 3-hour segment of all heat runs. 13. Sound tests at each stage of cooling ONAN/ONAF/ONAF. 14. LTC and LTC controller function tests. P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl_Spec 428509.docx Trs 21 15. The transformer design shall be adequate to withstand short circuits, with the fault current limited only by the impedance of the transformer itself. 16. Partial discharge test and RIV test shall be performed simultaneously on all windings. No partial discharge greater than 300 pico-coulombs shall be acceptable. 17. Sweep frequency response testing shall be performed to generate a "footprint" of the winding positioning to be used to determine if the windings have moved or shifted. This critical determination of winding movement will be used as basis for future evaluation of the integrity of the transformer. 18. Functional testing on all controls, accessories, and auxiliary equipment is to be completed at the manufacturing facility prior to shipment. This shall be documented in the test report. B. Oil screen tests for the main tank and LTC include the following. 1. Liquid Screen Analysis: a. Dielectric test (ASTM D877 and D1816-2) b. Neutralization [Acid Number (D-974)] C. Interfacial Tension (D-971) d. Moisture (D-1533) e. Color Number (D-1500) f. Visual and Sediment Examination (D-1524) g. Power Factor @ 25°C and @ 100' C (D-924) h. Specific Gravity (D-1298) 2. Gas -In -Oil Analysis: a. Hydrogen b. Oxygen C. Nitrogen d. Methane e. Carbon Monoxide f. Carbon Dioxide g. Ethane h. Ethylene i. Acetylene *Gas -In -Oil Analysis tests shall be performed before all electrical testing. C. The Owner or Engineer reserves the right to witness the tests at the manufacturer's facilities. Provide a minimum of two (2) weeks notice prior to factory testing. Provide a link to the Owner and Engineer so the testing can be witnessed through a web meeting. P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl_Spec 428509.docx Trs 22 D. The Owner or Engineer reserves the right to inspect the completed core and coil assembly prior to tanking. The manufacturer shall notify the Owner and Engineer not less than five (5) days prior to the date of tanking to allow the customer to witness tanking, if so desired. 3.02 FIELD SERVICES: A. The Contractor shall include the cost of installation and field services for each transformer in the spaces provided on the Bid Form. The services shall include the following items at a minimum. The Contractor shall also attach a detailed description with the Bid of the services to be performed. B. The services shall include receiving the transformers, unloading, placement of units on concrete pad, attachment of all radiators and accessories, and filling of oil as required. The Contractor shall inspect the units and repair any damage experienced during shipment. C. The services shall include testing the unit. The minimum tests shall be standard field test, including, but not limited to TTR, megger check, core ground check, SFRA, and LTC operation tests, and shall include all tests required in order not to void the warranty. Certified test reports shall be supplied. Attach a complete list of tests proposed with the Bid. D. In addition to standard field tests, the Contractor shall furnish certified oil tests covering the oil tests listed below. The Contractor shall send the samples to lab approved by the Owner. These tests shall be done in the field after the transformer is placed on the pad, NOT at the manufacturing site. Liquid Screen Analysis: a. Dielectric test (ASTM D877 and D1816-2) b. Neutralization [Acid Number (D-974)] C. Interfacial Tension (D-971) d. Moisture (D-1533) e. Color Number (D-1500) f. Visual and Sediment Examination (D-1524) g. Power Factor @ 25°C and @ 100' C (D-924) h. Specific Gravity (D-1298) 2. Gas -In -Oil Analysis: a. Hydrogen b. Oxygen C. Nitrogen d. Methane Carbon Monoxide f. Carbon Dioxide g. Ethane h. Ethylene i. Acetylene P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Plantl_Spec 428509.docx Trs 23 *Gas -In -Oil Analysis tests shall be performed before all electrical testing. E. Submission of a Bid with per diem or hourly rate without including a total or limit to this section will be grounds for disqualification of the bid. F. The Contractor shall include hourly or daily rate for additional work beyond the scope of this contract in the event these services are required. G. The field services shall be completed within fifteen (15) days after delivery of the transformers. * * * END OF SECTION * * * P:A04\285\09\DocASpecAXfinr\Hutchinson MNPwr Xfiur Planil Spec 428509.docx Trs 24 MATERIAL AGREEMENT THIS AGREEMENT made as of , 2026 between (hereinafter called the "Contractor"), and Hutchinson Utilities Commission - Hutchinson, Minnesota (hereinafter called the "Owner"), WTTNESSETH, that the Contractor and the Owner for the considerations hereinafter named agree as follows: 1.01 SCOPE OF WORK. A. The Contractor agrees to sell and deliver to the Owner and the Owner agrees to purchase and receive from the Contractor equipment in strict accordance with the documents entitled "Furnishing 115/13.8 kV Power Transformers — Plant 1 Substation" for Hutchinson Utilities Commission - Hutchinson, Minnesota. 1.02 THE CONTRACT DOCUMENTS. A. The Contract Documents shall consist of this written Agreement, Bid Form, Advertisement for Bids, Instructions to Bidders, Addendums issued numbers _, Insurance Policies and Certificates, General Requirements, Performance Bond, Drawings and Specifications, tests and engineering data, approved Change Orders, Contractor's Requests for Payment, and all Addenda issued by the Owner prior to the awarding of the Contract (collectively, the "Contract Documents"). All of the Contract Documents listed in this Material Agreement are hereby incorporated by this reference as fully as if they were set out in this Agreement in full, all of which documents and instruments are incorporated by the signature of the parties hereto. 1.03 TIME OF COMPLETION. A. The work to be performed under this Contract shall be commenced upon execution of this Agreement. Material shall be fully delivered by [To be updated with Contractor's guaranteed delivery date], and onsite Field Services shall be fully completed by [To be updated with date 15 days after delivery date]. 1.04 THE CONTRACT SUM. A. The Owner shall pay the Contractor for the equipment, in current funds: The Owner shall pay to the Contractor for performance of the work encompassed by this Agreement, and the Contractor will accept as full compensation therefore the lump SUM of $ , subject to adjustment as provided by the Contract Documents, to be paid by progress payments in cash or its equivalent in the manner provided for in the Contract Documents. P:A04\285\09\1)i.)cASpP,c\X9`arrr\Ilutchinson NUJ 11wr Xt'nir PlanH Spec 428509.docx MA I 1.05 PAYMENT. A. Payment to the Supplier for the equipment shall be made according to the following schedule: 10% of the Total Base Price at time of order placement. 5% of the Total Base Price at submission of second revision of nameplate and outline drawings. 5% of the Total Base Price at submission of second revision of control drawings. The following payments shall be made on a per unit basis: 40% of the Unit Base Price at completion of core and coil assembly (pre- VPD). 15% of the Unit Base Price at successful factory testing. 20% of the Unit Base Price at time of offloading on site. B. Payment shall be made for the remaining five percent (5%) of the per unit Base Price, less calculated penalties, within forty-five (45) days after final completion, field testing, and receipt of test reports, final drawings, certification by the Engineer, and associated invoice. C. Payment to the Supplier for rigging, offloading and crane shall be made on the per unit basis of one hundred percent (100%) of the Rigging, Offloading, and Crane; within forty-five (45) days after completion of the offloading and associated invoice. D. Payment to the Supplier for field assembly and testing shall be made on the per unit basis of one hundred percent (100%) of the Field Services Price, within forty- five (45) days after completion of the field services and associated invoice. 1.06 LIQUIDATED DAMAGES: A. Contractor and Owner recognize that time is of the essence and that Owner will suffer financial and other losses if the Work is not completed and Milestones not achieved within the times specified, plus any extensions thereof allowed in accordance with the Contract. The parties also recognize the delays, expense, and difficulties involved in proving in a legal or arbitration proceeding the actual loss suffered by Owner if the Work is not completed on time. Accordingly, instead of requiring any such proof, Owner and Contractor agree that as liquidated damages for delay (but not as a penalty): B. Contractor shall pay Owner $500 for each day that expires after the time (as duly adjusted pursuant to the Contract) specified in the Instruction to Bidders for completion until the Work is complete. P:A04\285\09\1)i.)cASpP,c\X9`arrr\Iiutchinson NUJ 11wr Xt'mr PlanH Spec 428509.docx MA 2 1.07 TERMINATION. A. This Agreement may be terminated by either parry upon seven (7) days written notice should the other parry breach the terms of this Agreement and, that parry fails to initiate and diligently pursue a cure to such breach within the seven (7) day period after receiving such written notice. 1.08 ASSIGNMENT. A. The Contractor shall not assign all of his rights or obligations under this Agreement without the express written consent of the Owner. Upon any assignment even though consented to by the Owner, the Contractor shall remain liable for the performance of the work under this Agreement. 1.09 PARTIAL INVALIDITY. A. If any provisions of this Agreement are in violation of any statute or rule of law of the State of Minnesota, then such provisions shall be deemed null and void to the extent that they may be violative of law, but without invalidating the remaining provisions hereof. 1.10 WAIVER. A. No waiver of any breach of any one of the agreements, terms, conditions or covenants of this Agreement by the Owner shall be deemed or imply or constitute a waiver of any other agreement, term, condition or covenant of this Agreement. The failure of the Owner to insist on strict performance of any agreement, term, condition or covenant, herein set forth, shall not constitute or be construed as a waiver of the Owner's rights thereafter to enforce any other default; neither shall such failure to insist upon strict performance be deemed sufficient grounds to enable the Contractor to forego or subvert or otherwise disregard any other agreement, term, condition or covenant of this Agreement. 1.11 ENTIRE AGREEMENT. A. The within Agreement, together with the Contract Documents, constitute the entire agreement of the parties hereto. No modification, change, or alteration of the within Agreement shall be of any legal force or effect unless in writing, signed by all the parties. 1.12 COUNTERPARTS. A. This Agreement may be executed in several counterparts and each such counterpart shall be deemed an original. P:A04\285\09\1)i.)cASpP,c\X9`arrr\Iiutchinson NUJ 11wr Xt'nir PlanH Spec 428509.docx MA 3 1.13 GOVERNING LAW. A. Venue for any and all legal actions regarding or arising out of the transaction covered herein shall be solely in the District Court in and for McLeod County, State of Minnesota or the United States District Court for the State of Minnesota. This transaction shall be governed by the laws of the State of Minnesota. 1.14 INSURANCE REQUIREMENTS. A. The Contractor shall secure and maintain such insurance policies as specified in the General Requirements of this Contract. 1.15 NOTICES. A. All notices, requests, demands and other communications given or to be given under this Agreement shall be in writing and shall be deemed to have been duly given when served if served personally, or on the second day after mailing if mailed by first class mail, registered or certified, postage prepaid, and properly addressed to the parry to whom notice is to be given as set forth below. If to Owner: If to Contractor: Hutchinson Utilities Commission 225 Michigan Street SE Hutchinson, MN 55350 1.16 RISK OF LOSS. A. Risk of loss of the Equipment shall remain with Contractor until the Equipment has been unloaded, inspected, and accepted by the Owner or Owner's Representative, at which time risk of loss shall pass to Owner. Notwithstanding the foregoing, if Owner rejects the Equipment as non -conforming, risk of loss of the Equipment shall be and remain with Contractor until Contractor corrects the non -conformity or Buyer accepts the Equipment. 1.17 TARIFFS. A. The Contractor represents and warrants that all pricing set forth in this Material Agreement fully accounts for all tariffs in effect as of the date of bid submission as defined in the Instructions to Bidders. As a condition of payment and upon request, Contractor shall furnish documentation verifying that any additional costs claimed due to federal trade tariffs are legitimate and have been actually incurred. Such documentation may include, but is not limited to, customs declarations, applicable tariff schedules, shipping invoices, and bills of lading. P:A04\285\09\1)i.)cASpP,c\X9`arrr\Iiutchinson NUJ Pwr Xt'nir Planes Spec 428509.docx MA 4 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized representatives all as of the day and year first above written. Hutchinson Utilities Commission Owner Sign: Sign: Print: Print: ATTEST Sign: Print: ATTEST Sign: Print: Contractor P:A04\285\09\1)i.)cASpP,c\X9`arrr\Iiutchinson NUJ 11wr Xt'mr PlanH Spec 428509.docx MA 5