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HomeMy WebLinkAbout8-26-2026 HUCCPHUTCHINSON UTILITIES COMMISSION AGENDA REGULAR MEETING August 26, 2026 3:00 p.m. 1. CONFLICT OF INTEREST 2. APPROVE CONSENT AGENDA a. Approve Minutes b. Ratify Payment of Bills 3. APPROVE FINANCIAL STATEMENTS 4. OPEN FORUM 5. COMMUNICATION a. City Administrator b. Divisions C. Human Resources d. Legal e. General Manager 6. POLICIES a. Review Policies i. Hutchinson Utilities Commission ii. Establishing a New Electric/Natural Gas Account iii. Deposit Requirement — Residential iv. Deposit Requirement — Commercial/Industrial v. Terminating Electric/Natural Gas Service by Customer vi. Definition of Your Bill vii. Errors in Billing viii. Payment of Your Bill ix. Automatic Bill Payment Plan x. Budget Payment Plan xi. Explanation of Billing Procedure xii. Disconnection of Residential Services by HUC xiii. Disconnection of Commercial Services by HUC xiv. After Hours Reconnection Policy xv. Landlord Acknowledgment xvi. Inserts with Utility Bills xvii. Identity Theft — "Red Flag Program" xviii. Minnesota Cold Weather Rule xix. Minnesota Government Data Practices Act and Public Records Request b. Approve Changes 7. UNFINISHED BUSINESS 8. NEW BUSINESS Approve Req#010690 — Power Gate and Camera Install Electrical work at Plant#2 Approve Req#010691- Install Automated Pivot Gate 9. ADJOURN MINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, July 22, 2026 Call to order — 3:00 p.m. President Don Martinez called the Martinez; Secretary Matt Cheney; Silvernale; GM Jeremy Carter; Absent: Attorney Marc Sebora 1. Conflict of Interest 2. Approve Consent Agenda a. Approve Minutes b. Ratify Payment of Bills meeting to order. Members present: President Don Vice President Tom Lambert; Commissioner Kathy Secretary Cheney will be abstaining from Agenda item 2b. Motion by Commissioner Lambert, second by Commissioner Silvernale to Approve the Consent Agenda. Motion carried unanimously. Secretary Cheney abstained. 3. Approve Financial Statements Mr. Martig presented the Financial Statements. Electric Division Transmission was over -estimated about $36K. Sales for Resale and PCA were also reviewed. Natural Gas Division Fuel Cost Adjustment for 2026 was $28K compared to a credit of $43K for 2025. GM Carter reviewed the Power Cost Adjustment dollars compared to previous years and the expectation of July's PCA. Overall combined divisions are trending well. Motion by Commissioner Silvernale, second by Commissioner Cheney to Approve the Financial Statements. Motion carried unanimously. 4. Open Forum 5. Communication a. City Administrator— Matthew Jaunich —Absent b. Divisions i. Dan Lang, Engineering Services Manager — 1. Transformer for Hutch Sub is scheduled to be delivered next month 2. Testing and commissioning of the 69kV side of the substation was completed, now working on 115kV side ii. Dave Hunstad, Electric Transmission/Distribution Manager - Absent iii. Mike Gabrielson, Production Manager- Absent iv. Byron Bettenhausen, Natural Gas Manager - 1. 2 new employees started 2. 6 inch parallel from Plant 1 to School Road to start August 3rd v. Jared Martig, Financial Manager 1. Bond Rating Call this morning with Jeremy c. Human Resources — Angie Radke - i. Finishing up Welder/Service Person new hire paperwork ii. Continuing to work on Compensation Study d. Legal — Marc Sebora — Absent e. General Manager — Jeremy Carter i. Provided update on Bond Rating call with potential dates ii. Working with BP and JP Morgan Chase on a final document related to the prepaid deal. iii. Met with Mr. Lang and MRES to review the Base load contract that is currently in place and if there are any other opportunities for any partnerships or long-term capacity contracts moving into the future. 6. Policies a. Review Policies i. Appendices of Exempt Handbook ii. Appendices of Non -Exempt Handbook No changes recommended at this time. 7. Unfinished Business 8. New Business a. Re -Adopt the Data Practices Act & Public Records Request Policy GM Carter presented Re -adopt the Data Practices Act & Public Records Request Policy. The State of Minnesota requires that political subdivisions like HUC adopt a data practices policy, which guides both the HUC and members of the public in obtaining information from HUC. State of Minnesota also requires that HUC adopt the data practices policy annually prior to August 1. There are no changes. Motion by Commissioner Cheney, second by Commissioner Silvernale to Re - Adopt the Data Practices Act & Public Records Request Policy. Motion carried unanimously. b. Approve Resolution 26-02 Authorizing City Council to issue 2026B Bonds GM Carter presented Approval of Resolution 26-02 Authorizing City Council to issue 2026B Bonds. This is one of the last pieces of the Commission as part of the bond process. City Council did approve last Tuesday moving forward 2 the bond issuance, now confirmation is needed by Hutchinson Utilities Commission to authorize the City Council to move forward with the bond issuance. The attached resolution 26-02 is reaffirming Commissioners want the City Council to issue bonds on behalf of HUC for a lot of the upkeep and improvements needed on the distribution and electric systems. Motion by Commissioner Lambert, second by Commissioner Cheney to Approve Resolution 26-02 Authorizing City Council to issue 2026B Bonds. Motion carried unanimously. c. Approve Contract with Hitachi Energy, USA to provide a 47MVA XFMR for Plant #1 Substation Rebuild Project Striking Item 8C from the Agenda to be reviewed at a later date. 9. Adjourn There being no further business, a motion by Commissioner Lambert, second by Commissioner Silvernale to adjourn the meeting at 3:17p.m. Motion carried unanimously. ATTEST: Don Martinez, President 3 Matt Cheney, Secretary MINUTES Special Meeting — Hutchinson Utilities Commission Tuesday, August 4, 2026 Call to order — 7:30 a.m. President Don Martinez called the meeting to order. Members present: President Don Martinez; Secretary Matt Cheney; Commissioner Kathy Silvernale; GM Jeremy Carter; Attorney Marc Sebora Others Present: Dan Lang, Mike Gabrielson, Angie Radke Absent: Vice President Tom Lambert The purpose of the special meeting is to Approve the Contract with Hitachi Energy, USA to provide a 47 MVA XFMR for the Plant #1 Substation Rebuild Project and Approve the Purchase of Charge Air Cooler for Unit #5. Mr. Lang presented the Approval of the Contract with Hitachi Energy, USA to provide a 47 MVA XFMR for the Plant #1 Substation Rebuild Project. Staff and DGR Engineering are recommending to enter into a purchase agreement with Hitachi Energy USA for a 47 MVA transformer to be installed at the Plant #1 Substation. The Hitachi proposal was the lowest evaluated price of the three responsible bids that were received for the April 15t" bid letting. Seller will provide the performance bond upon contract execution. Motion by Commissioner Cheney, second by Commissioner Silvernale to Approve the Contract with Hitachi Energy, USA to provide a 47 MVA XFMR for the Plant #1 Substation Rebuild Project. Motion carried unanimously. Mr. Gabrielson presented the Approval of the Purchase of Charge Air Cooler for Unit #5. The charge air cooler for unit 5 is leaking glycol and needs to be replaced. HUC has expedited the air cooler due to peak summer load demand and to ensure proper regional generation support during the upcoming planned Sub -Station outage. Motion by Commissioner Silvernale, second by Commissioner Cheney to Approve the Purchase of Charge Air Cooler for Unit #5. Motion carried unanimously. There being no further business, a motion by Commissioner Cheney, second by Commissioner Silvernale to adjourn the meeting at 7:38a.m. Motion carried unanimously. 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Depreciation Transfers (Elect./City) Operating Expense Debt Interest TOTAL EXPENSES NET PROFIT/(LOSS) 58.3% of Year Comp. 2026 2025 Di %Chna 2026 2025 Di %Chna Full Yr Bud %of Bud $ 3,404,449 $ 2,922,751 $ 481,698 $ 343,992 $ 1,155,506 $ (811,514) $ 181,601 $ 171,496 $ 10,105 $ 60,667 $ 60,639 $ 28 $ 205,829 $ 48,671 $ 157,158 $ 24,867 $ 72,529 $ (47,662) $ 4,221,404 $ 4,431,591 $ (210,187) 16.5% $ 24,639,356 $ 21,384,062 $ 3,255,293 15.2% $ 40,209,447 61.3% (70.2%) $ 2,333,507 $ 4,229,626 $ (1,896,119) (44.8%) $ 4,339,200 53.8% 5.9% $ 1,207,074 $ 1,203,909 $ 3,165 0.3% $ 2,037,588 59.2% 0.0% $ 424,667 $ 424,472 $ 195 0.0% $ 728,000 58.3% 322.9% $ 590,756 $ 357,173 $ 233,583 65.4% $ 573,955 102.9% (65.7%) $ 279,374 $ 452,563 $ (173,189) (38.3%) $ 583,457 47.9% (4.7%) $ 29,474,733 $ 28,051,806 $ 1,422,928 5.1% $ 48,471,647 60.8% $ 655,730 $ 652,304 $ 3,426 0.53% $ 4,762,519 $ 4,519,940 $ 242,579 5.4% $ 8,524,717 55.9% $ 1,474,290 $ 1,556,126 $ (81,836) (5.3%) $ 13,395,496 $ 11,975,671 $ 1,419,825 11.9% $ 20,816,157 64.4% $ 503,848 $ 209,297 $ 294,552 140.7% $ 2,543,830 $ 1,514,422 $ 1,029,408 68.0% $ 4,200,000 60.6% $ 283,636 $ 591,888 $ (308,252) (52.1%) $ 743,507 $ 1,376,772 $ (633,265) (46.0%) $ 2,008,656 37.0% $ 352,458 $ 351,370 $ 1,088 0.3% $ 2,474,629 $ 2,469,763 $ 4,866 0.2% $ 4,190,000 59.1% $ 222,552 $ 222,524 $ 28 0.0% $ 1,557,865 $ 1,557,670 $ 195 0.0% $ 2,670,626 58.3% $ 310,313 $ 316,212 $ (5,899) (1.9%) $ 2,218,120 $ 2,233,863 $ (15,743) (0.7%) $ 3,791,274 58.5% $ 38,805 $ 49,688 $ (10,883) (21.9%) $ 271,633 $ 347,816 $ (76,183) 21.9% $ 465,657 58.3% $ 3,841,632 $ 3,949,409 $ (107,776) (2.7%) $ 27,967,599 $ 25,995,919 $ 1,971,680 7.6% $ 46,667,087 59.9% $ 379,772 $ 482,183 $ (102,411) (21.2%)l 1,507,134 $ 2,055,887 $ (548,753) (26.7%) $ 1,804,560 83.5% July July i, YTD YTD 2026 2025 Change 2026 2025 Change Gross Margin %: 32.6% 34.8% -2.2% 30.7% 34.6% -3.9% Operating Income Per Revenue $ (%): 5.2% 9.9% -4.7% 3.6% 6.3% -2.7% Net Income Per Revenue $ (%): 9.0% 10.9% -1.9% 5.1% 7.3% -2.2% 2026 HUC Budget Target 32.2% 2.8%N 3.7%N uuIIUuIINNI HUTCHINSON UTILITIES COMMISSION ELECTRIC DIVISION FINANCIAL REPORT FOR JULY, 2026 583�6o ofYearCow. 2026 2025 Di . %Chna 2026 2025 Di %Chna FullYrBud %of Bud Electric Division Customer Revenue $ 2,794,606 $ 2,410,518 $ 384,087 15.9% $ 16,007,308 $ 14,182,024 $ 1,825,284 12.9% $ 27,471,918 58.3% Sales for Resale $ 343,992 $ 1,155,506 $ (811,514) (70.2%) $ 2,333,507 $ 4,229,626 $ (1,896,119) (44.8%) $ 4,339,200 53.8% Other Revenues $ 171,392 $ 13,967 $ 157,425 1,127.1% $ 347,727 $ 160,530 $ 187,196 116.6% $ 202,862 171.4% Interest Income $ 13,828 $ 37,659 $ (23,831) (63.3%) $ 149,445 $ 236,040 $ (86,594) (36.7%) $ 308,457 48.4% TOTAL REVENUES $ 3,323,817 $ 3,617,650 $ (293,833) (8.1%) $ 18,837,987 $ 18,808,220 $ 29,767 0.2% $ 32,322,437 58.3% Salaries & Benefits $ 480,426 $ 483,090 $ (2,664) Purchased Power $ 1,166,663 $ 1,300,680 $ (134,017) Transmission $ 503,848 $ 209,297 $ 294,552 Generator Fuel/Chem. $ 283,636 $ 591,888 $ (308,252) Depreciation $ 253,437 $ 253,532 $ (95) Transfers (Elect./City) $ 172,817 $ 172,789 $ 28 Operating Expense $ 212,756 $ 187,730 $ 25,026 Debt Interest $ 30,138 $ 32,771 $ (2,633) TOTAL EXPENSES $ 3,103,722 $ 3,231,778 $ (128,056) NET PROFIT/(LOSS) $ 220,095 $ 385,872 $ (165,777) (0.6%) $ 3,479,885 $ 3,395,332 $ 84,554 2.5% $ 6,178,442 (10.3%) $ 7,804,779 $ 7,403,696 $ 401,083 5.4% $ 13,035,315 140.7% $ 2,543,830 $ 1,514,422 $ 1,029,408 68.0% $ 4,200,000 (52.1%) $ 743,507 $ 1,376,772 $ (633,265) (46.0%) $ 2,008,656 (0.0%) $ 1,780,376 $ 1,784,404 $ (4,028) (0.2%) $ 3,060,000 0.0% $ 1,209,718 $ 1,209,523 $ 195 0.0% $ 2,073,802 13.3% $ 1,532,863 $ 1,521,851 $ 11,013 0.7% $ 2,553,967 (8.0%) $ 210,966 $ 229,400 $ (18,433) JLgL $ 361,657 (4.0%) $ 19,305,925 $ 18,435,400 $ 870,525 4.7% $ 33,471,839 (43.0%) $ (467,938) $ 372,820 $ (840,758) (225.5%) $ (1,149,402 56.3% 59.9% 60.6% 37.0% 58.2% 58.3% 60.0% 58.3% 57.7% 40.7% 2026 2025 Di . %Chna 2026 2025 Di %Chna FullYrBud %of Bud Electric Division Residential 7,033,221 6,461,171 572,050 8.85% 32,413,515 31,802,335 611,180 1.92% 54,016,284 60.0% All Electric 196,172 184,217 11,955 6.49% 1,505,019 1,532,358 (27,339) (1.78%) 2,281,979 66.0% Small General 1,900,112 1,810,855 89,257 4.93% 10,393,090 10,558,006 (164,916) (1.56%) 17,753,235 58.5% Large General 10,368,790 9,815,630 553,160 5.64% 58,347,750 52,301,880 6,045,870 11.56% 92,221,607 63.3% Industrial 9,719,000 8,962,000 757,000 8.45% 56,921,000 57,995,000 (1,074,000) (1.85%) 97,880,814 58.2% Total KWH Sold 29,217,295 27,233,873 1,983,422 7.28% 159,580,374 154,189,579 5,390,795 3.50%1 264,153,919 60.4% July July YTD YTD 2026 HUC 2026 2025 Change 2026 2025 Change Budget Target Gross Margin %: 25.1% 30.0% -4.9% 23.5% 29.2% -5.7% 24.7% 24%-28% Operating Income Per Revenue $ (%): 2.6% 10.6% -8.1% -3.6% 1.6% -5.2% -3.6% IIIIIIIIIIIIIIIII Net Income Per Revenue $ (%): 6.6% 10.7% -4.0% -2.5% 2.0% -4.5% -3.6% IIIIIIIIIIIIIIIII Customer Revenue per KWH: $0.0956 $0.0885 $0.0071 $0.1003 $0.0920 $0.0083 $0.1040 $0.1040 Total Power Supply Exp. per KWH: $0.0808 $0.0920-$0.0112 $0.0883 $0.0850 $0.0033 $0.0911 Net Income decreased by $165,777 over July 2025. Customer revenue and usage was up with increased temperatures but offset by lower sales for resale. Generator fuels were down with the decrease in sales for resale and transmission expenses continue to be much higher which was budgeted for. The increase in misc revenue was due to reimbursement on the rooftop solar projects. Sales for Resale of $343,992 consisted of $112,992 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. July 2025 Sales for Resale of $1,155,506 included $924,506 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. July 2024 Sales for Resale of $280,346 consisted of $74,121 in market sales, $98,000 in capacity sales to Rice Lake and $108,225 in capacity sales to AEP. Overall Purchased Power decreased by $134,017. MRES purchases increased by $56,823 and market purchases/MISO costs decreased by $190,840. The average cost of MISO power was $39.89/mwh (3,392 mwh's purchased), compared to $35.22/mwh (1,895 mwh's purchased) in July 2025. July 2026 PCA was $.00613/kwhr bringing in an additional $178,571 for the month and $1,275,488 YTD. The 7 month average PCA is $.00805. There was no PCA for July 2025 leaving the total collected at $151,798 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 JULY, 2026 58.3% of Year Comp. 2026 2025 2 %Chna 2026 2025 2 . %Chna Full YrBud %of Bud $ 609,843 $ 512,233 $ 97,611 19.1% $ 8,632,047 $ 7,202,039 $ 1,430,009 19.9% $ 12,737,529 67.8% $ 181,601 $ 171,496 $ 10,105 5.9% $ 1,207,074 $ 1,203,909 $ 3,165 0.3% $ 2,037,588 59.2% $ 60,667 $ 60,639 $ 28 0.0% $ 424,667 $ 424,472 $ 195 0.0% $ 728,000 58.3% $ 34,436 $ 34,704 $ (267) (0.8%) $ 243,029 $ 196,643 $ 46,386 23.6% $ 371,093 65.5% $ 11,040 $ 34,871 $ (23,831) (68.3%) $ 129,929 $ 216,523 $ (86,594) (40.0%) $ 275,000 47.2% $ 897,587 $ 813,941 $ 83,645 10.3% $ 10,636,746 $ 9,243,586 $ 1,393,161 15.1% $ 16,149,210 65.9% $ 175,303 $ 169,214 $ 6,090 3.6% $ 1,282,634 $ 1,124,608 $ 158,026 14.1% $ 2,346,275 54.7% $ 307,627 $ 255,446 $ 52,181 20.4% $ 5,590,717 $ 4,571,975 $ 1,018,742 22.3% $ 7,780,842 71.9% $ 97,557 $ 128,482 $ (30,925) (24.1%) $ 685,257 $ 712,012 $ (26,756) (3.8%) $ 1,237,307 55.4% $ 99,021 $ 97,837 $ 1,183 1.2% $ 694,252 $ 685,359 $ 8,894 1.3% $ 1,130,000 61.4% $ 49,735 $ 49,735 $ - 0.0% $ 348,147 $ 348,147 $ 0 0.0% $ 596,824 58.3% $ 8,667 $ 16,917 $ (8,250) 0.0% $ 60,667 $ 118,417 $ (57,750) 48.8% $ 104,000 58.3% $ 737,910 $ 717,631 $ 20,280 2.8% $ 8,661,674 $ 7,560,518 $ 1,101,156 14.6% $ 13,195,248 65.6% $ 159,676 $ 96,311 $ 63,366 65.8% $ 1,975,072 $ 1,683,067 $ 292,005 17.3% $ 2,953,962 66.9% 2026 2025 2 %Chnq 2026 2025 p %Chnq Full YrBud %of Bud Gas Division Residential 5,977,296 Commercial 8,850,090 Industrial 46,755,720 6,161,407 7,467,182 48,314,392 (184,111) 1,382,908 (1,558,672) (2.99%) 18.52% (3.23%) 255,371,150 195,161,937 489,145,893 266,269,258 199,403,071 500,183,764 (10,898,108) (4,241,134) (11,037,871) (4.09%) (2.13%) (2.21%) 410,283,000 317,957,000 820,578,000 62.2% 61.4% 59.6% Total CF Sold 61,583,106 61,942,981 (359,875) (0.58%) 939,678,980 965,856,093 (26,177,113) (2.71%) 1,548,818,000 60.7% July July YTD YTD 2026 HUC 2026 2025 Change 2026 2025 Change Budget Target Gross Margin %: 60.1% 57.8% 2.3% 43.6% 45.8% -2.2% 47.7% Operating Income Per Revenue $ (%): 15.0% 6.4% 8.5% 16.4% 16.0% 0.4% 15.9% Net Income Per Revenue $ (%): 17.8% 11.8% 6.0% 18.6% 18.2% 0.4% 18.3% Contracted Customer Rev. per CF: $0.0068 $0.0065 $0.0003 $0.0075 $0.0067 $0.0008 $0.0069 Customer Revenue per CF: $0.0175 $0.0127 $0.0049 $0.0108 $0.0082 $0.0026 $0.0095 Total N.G. Supply Exp. per CF: $0.0056 $0.0051 $0.0005 $0.0062 $0.0050 $0.0012 $0.0053 Notes/Graphs: July Net Income increased by $63,366. Usage was down but revenues were up due to the fuel cost adjustment in 2026 compared to a credit a year ago. Operating expenses were down due mostly to public awareness materials purchased a year ago and some transmission work done by a contractor. Fuel Cost Adjustment for July 2026 was $.141/MCF bringing in an additional $25,126 for the month and $635,295 YTD. July 2025 Fuel Cost "Credit" Adjustment was $3.1828/MCF crediting customers $57.719 for the month and $596.051 YTD. HUTCHINSON UTILITIES COMMISSION BALANCE SHEET - CONSOLIDATED JULY 31, 2026 Electric Gas Total Total Net Change Division Division 2026 2025 Total (YTD) Current Assets UnrestrictedlUndesignated Cash Cash (10,260,559.02) 16,116,867.54 5,856,308.52 11,598,610.15 (5,742,301.63) Petty Cash 680.00 170.00 850.00 850.00 - Designated Cash Capital Expenditures - Five Yr. CIP 2,750,000.00 700,000.00 3,450,000.00 3,450,000.00 - Payment in Lieu of Taxes 1,345,802.00 596,824.00 1,942,626.00 1,942,626.00 - Rate Stabilization - Electric 1,301,838.58 - 1,301,838.58 1,443,969.35 (142,130.77) Rate Stabilization - Gas - 491,935.78 491,935.78 615,294.19 (123,358.41) Catastrophic Funds 800,000.00 200,000.00 1,000,000.00 1,000,000.00 - Restticted Cash Bond & Interest Payment 2017 735,770.88 - 735,770.88 592,609.37 143,161.51 Bond & Interest Payment 2012 - 1,274,000.00 1,274,000.00 1,353,833.32 (79,833.32) Debt Service Reserve Funds 1,175,000.00 2,072,000.00 3,247,000.00 3,255,256.00 (8,256.00) Total Current Assets (2,151,467.56) 21,451,797.32 19,300,329.76 25,253,048.38 (5,952,718.62) Receivables Accounts (net of uncollectible allowances) 2,803,526.72 535,644.81 3,339,171.53 2,897,941.11 441,230.42 Interest 49,785.32 49,785.33 99,570.65 148,628.57 (49,057.92) Total Receivables 2,853,312.04 585,430.14 3,438,742.18 3,046,569.68 392,172.50 Other Assets Inventory 2,283,684.72 510,924.53 2,794,609.25 2,591,812.47 202,796.78 Prepaid Expenses 453,888.18 101,144.74 555,032.92 822,977.40 (267,944.48) Sales Tax Receivable 146,731.31 - 146,731.31 447,658.73 (300,927.42) Deferred Outflows- Electric 371,991.00 - 371,991.00 342,759.00 29,232.00 Deferred Outflows - Gas - 123,997.00 123,997.00 114,253.00 9,744.00 Total Other Assets 3,256,295.21 736,066.27 3,992,361.48 4,319,460.60 (327,099.12) Total Current Assets 3,958,139.69 22,773,293.73 26,731,433.42 32,619,078.66 (5,887,645.24) Capital Assets Land & Land Rights 690,368.40 3,899,918.60 4,590,287.00 4,590,287.00 - Depreciable Capital Assets 95,284,122.31 45,149,321.56 140,433,443.87 139,396,848.75 1,036,595.12 Accumulated Depreciation (52,836,626.11) (24,075,648.94) (76,912,275.05) (72,725,806.33) (4,186,468.72) Construction - Work in Progress 12,186,476.64 226,429.63 12,412,906.27 3,883,675.94 8,529,230.33 Total Net Capital Assets 55,324,341.24 25,200,020.85 80,524,362.09 75,145,005.36 5,379,356.73 Total Assets 59,282,480.93 47,973,314.58 107,255,795.51 107,764,084.02 (508,288.51) Current Liabilities Current Portion of Long-term Debt Bonds Payable Bond Premium Lease Liability - Solar Array Accounts Payable Accrued Expenses Accrued Interest Accrued Payroll Total Current Liabilities Long -Term Liabilities Noncurrent Portion of Long-term Debt 2017 Bonds 2012 Bonds Bond Premium 2012 Pension Liability- Electric Pension Liability - Electric OPEB Pension Liability - Nat Gas Pension Liability - Nat Gas OPEB Accrued Vacation Payable Accrued Severance Deferred Outflows - Electric Deferred Outflows - Nat Gas Total Long -Term Liabilities Net Position Retained Earnings Total Net Position HUTCHINSON UTILITIES COMMISSION BALANCE SHEET - CONSOLIDATED JULY 31, 2026 Electric Gas Total Division Division 2026 820,000.00 19, 546.00 3,164,976.28 60,275.96 61,959.41 4,126,757.65 10,930,000.00 379,178.88 1, 585, 328.00 42,211.00 635,863.89 224,153.38 1,087,158.00 14,883,893.15 2,080,000.00 185,608.32 511, 668.16 17, 333.50 24, 677.14 2,819,287.12 (123,739.25) 528,443.00 14,071.00 224,492.28 44,404.41 362,386.00 1,050,057.44 2,900,000.00 185,608.32 19, 546.00 3,676,644.44 77,609.46 86,636.55 6,946,044.77 10,930,000.00 255,439.63 1, 585, 328.00 42,211.00 528,443.00 14,071.00 860,356.17 268,557.79 1,087,158.00 362,386.00 15,933,950.59 Total Net Change 2025 Total (YTD) 2, 770, 000.00 130, 000.00 185,608.32 - - 19,546.00 3,704,221.36 (27,576.92) 99,376.06 (21,766.60) 65,517.86 21,118.69 6, 824, 723.60 121, 321.17 11,750,000.00 (820,000.00) 2,080,000.00 (2,080,000.00) 474,504.91 (219,065.28) 1,832,248.00 (246,920.00) 39,880.00 2,331.00 610,749.00 (82,306.00) 13,293.00 778.00 739,330.02 121,026.15 245,721.73 22,836.06 1,294,449.00 (207,291.00) 431,483.00 (69,097.00) 19,511,658.66 (3,577,708.07) 40,271,830.13 44,103,970.02 84,375,800.15 81,427,701.76 2,948,098.39 40,271,830.13 44,103,970.02 84,375,800.15 81,427,701.76 2,948,098.39 Total Liabilities and Net Position 59,282,480.93 47,973,314.58 107,255,795.51 107,764,084.02 (508,288.51) Hutchinson Utilities Commission Cash -Designations Report, Combined 7/31/2026 Financial Institution Current Interest Rate Annual Interest Balance, July 2026 Balance, June 2026 Change in Cash/Reserve Position Savings, Checking, Investments varies varies varies 19,300,329.76 19,729,025.60 (428,695.84) Total Operating Funds 19,300,329.76 19,729,025.60 (428,695.84) 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 (2026-2030 Fleet & Infrastructure Maintenance) 2,009,770.88 1,729,299.52 280,471.36 3,247,000.00 3,247,000.00 - 5,256,770.88 4,976,299.52 280,471.36 7,079,514.50 7,079,514.50 - 1, 793, 774.36 1, 732, 311.41 61, 462.95 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, 26 5, 914.86 15,204,451.91 61,462.95 YE YE YE YE YTD HUC 2022 2023 2024 2025 2026 Target Debt to Asset 31.4% 28.6% 26.0% 22.3% 21.3% Current Ratio 4.47 4.48 3.67 3.10 3.03 RONA -1.38% 1.96% 2.63% 3.23% 1.59% Historical Change in Cash Balance Month End Electric Elec. Change Natural Gas Gas Change Total Total Change 7/31/2026 (2,151,468) 21,451,797 19,300,330 12/31/2025 (416,323) (1,735,145) 18,975,091 2,476,706 18,558,768 741,562 12/31/2024 6,134,710 (6,551,033) 17,717,453 1,257,638 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 7/31/2026 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest July 2026 June 2026 Position �' Rr Savings, Checking, Investments varies varies varies 19,300,329.76 19,729,025.60 (428,695.84) Total HUC Operating Funds 19,300,329.76 19,729,025.60 (428,695.84) Debt Restricted Requirements Debt Restricted Requirements Total Restricted Funds Bond Covenants - sinking fund Bond Covenants -1 year Max. P & 1 735,770.88 1,175,000.00 1,910,770.88 637,299.52 1,175,000.00 1,812,299.52 98,471.36 - 98,471.36 Excess Reserves Less Restrictions, Electric 0. i 11J! !!1 1 !1 J J Operating Reserve Min 60 days of 2026 Operating Bud. 5,068,639.83 5,068,639.83 Rate Stabalization Funds $400K-$1.2K 1,301,838.58 1,301,838.58 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 (2026-2030 Fleet & Infrastructure Maintenance) 2,750,000.00 2,750,000.00 Total Designated Funds 11,266,280.41 11,266,280.41 Excess Reserves Less Restrictions & Designations, Electric (15,328,518.85) (14,950,222.40) (378,296.45) YE YE YE YE YTD APPA Ratio HUC 2022 2023 2024 2025 2026 5K-10K Cust. Target Debt to Asset Ratio (* w/Gen.) 34.8% 34.0% 33.9% 31.6% 32.1% 39.8% pp ppppp ryry NNNNNNNNNNNN Current Ratio 4.96 4.35 2.38 0.80 0.41 3.75 >2.0 RONA -4.2% -0.9% -2.1% 0.4% -0.9% NA >0% Hutchinson Utilities Commission Cash -Designations Report, Gas 7/31/2026 Change in Financial Annual Balance, Balance, Cash/Reserve Institution Current Interest Rate Interest July 2026 June 2026 Position 51' Rr Savings, Checking, Investments varies varies varies 19,300,329.76 19,729,025.60 (428,695.84) Total HUC Operating Funds 19,300,329.76 19,729,025.60 (428,695.84) Debt Restricted Requirements Bond Covenants - sinking fund 1,274,000.00 1,092,000.00 182,000.00 Debt Restricted Requirements Bond Covenants -1 year Max. P & 1 2,072,000.00 2,072,000.00 - Total Restricted Funds 3,346,000.00 3,164,000.00 182,000.00 Excess Reserves Less Restrictions, Gas 18,105,797.32 18,436,668.07 (330,870.75) 1 1 JJJ1 111 1 11 J J Operating Reserve Min 60 days of 2026 Operating Bud. 2,010,874.67 2,010,874.67 - Rate Stabalization Funds $200K-$600K 491,935.78 430,472.83 61,462.95 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 (2026-2030 Fleet & Infrastructure Maintenance) 700,000.00 700,000.00 - Total Designated Funds 3,999,634.45 3,938,171.50 61,462.95 YE YE YE YE YTD HUC 2022 2023 2024 2025 2026 AGA Ratio Target Debt to Asset 26.5% 21.0% 15.5% 10.6% 8.1% 35%-50% Current Ratio 4.06 4.61 5.08 5.18 6.85 1.0-3.0 RONA 3.0% 6.2% 9.1% 7% 4.7% 2%-5% Notes/Graphs: ELECTRIC DIVISION Operating Revenue July 2026 CLASS AMOUNT KWH /KWH Street Lights 21.37 392 $0.0545 Electric Residential Service $791,512.88 7,033,221 $0.1125 All Electric Residential Service $24,364.59 196,172 $0.1242 Electric Small General Service $213,045.05 1,900,112 $0.1121 Electric Large General Service $957,577.15 10,368,790 $0.0924 Electric Large Industrial Service $808,084.52 9,719,000 $0.0831 Total $2,794,605.56 29,217,687 $0.0956 Power Adjustment $0.00613 Rate Without Power Adjustment $0.08952 Electric Division Year -to -Date ® 2026 $ Amount ❑ 2025 $ Amount ® 2026 KWH110 ❑ 2025 KWH110 20,000,000 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 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 July 2026 CLASS AMOUNT MCF /MCF Residential $150,291.24 5,977 $25.1437 Commercial $133,133.39 8,850 $15.0432 Large Industrial $29,121.40 2,992 $9.7340 Large Industrial Contracts $297,297.26 43,764 $6.7932 Total $609,843.29 61,583 $9.9028 Fuel Adjustment $0.00141 Rate Without Fuel Adjustment $9.90136 Natural Gas Division Year -to -Date ❑ 2026 $ Amount ❑ 2025 $ Amount m 2026 MCF ❑ 2025 MCF 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Gas Residential Gas Commercial Large Industrial Large Industrial Total Contracts 2 0 Cl) y N E Q ��.E000QQQQQQQ�QQ QQQQQQQQQQQQQQQQrQQQQ�QQQ�QQ�QQQQ�Q�QQ� z a N- Z Z Z Z Z Z Z Z Z Z m Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z z Z� Z Z z Z � Z Z Z � Z Z � Z Z Z Z � Z � Z Z � Q1 W¢ N N a W M N a 4 N 0101;' Oi O N W O N O W V W W O O V 01 N N N i O N N M 0 0 0 0 0 0 0 0 0 1 O N O O 0 0 0 0 0 0 0 0 0 1 O W N � W V' N W N N N O O N 0 1 N N O O W O V M V' V' V' N N V N t N N O N M M N N N N N N N N N t 01 N N Vq V' N 01 N V' M W W � � N V' O O N W� 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 of 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 O N O O O N N W N N N O O N N 1 01 01 O V'O V'OOOOO V'O V'� W � W N0101O W W OO W V BOO W OMM� �Q) � W OWONI�OOI�N 01VOMVI�NV'WOOO�0WNO01WNW V'N VIA V'W O N O W N N W M W W T W O O N M N N W N W W 01 01 N O M V' 01 M N 01 N 01 W N I� M W 01 W N V' M W M O N N 0 0 0 C' noo' N M M N N � I� r V W V' M H O 01 W N N � � V' W O E 01 M O W 01 V' M W MNM1�01 I� W NNMN V'I��NN��I�N vl�l�O1��� N =' 01 01 O V'O V'O 0 0 0 0 V'O V'W W � M N � 01 N W WOO V'V N O O W O M M M 01 � W O W ONNON V'N 01 V' V'MNMNNMON W �O�I�NN W MHO W OIL ' O NWNV'OOVNN MW0IWMMV'01W 0101W�NWI�ONNW V'V I�MO W 01 M�NI�VMNMW 01 �I�NV'WN�NNI�MOW WMWNW W�WNV'01 N V' MvI�vMWMW01 ONN1�01�V'N N01 V'WNOW0101WNVI��NV'M 01 O V'O V'O O O O O V'O V' W W N c O W WOO V'V'I� O O W O M M M V'01 O O O N ' O NOW�NN��W MW WI�rWO01WNMN�N�W WI��NW�0101 V' OM N 01 W2 01W NI�M W01WNV'MW W WONNOOOW V'I�WOV'O V'�N 01 I� N I� N W N M M N N— I� r V' W V' M— 01 O W N N V' — O 01 — M 01 W 01 N M I� N N N W O O O O O O O O O O O O O N O O N O O O N O O O O O O N O 0 0 0 0 0 0 0 0 O ON W O OM V' V NNNMN QOi W W (WOOrN W M�r W OON �N W N��ton -(NO W I� r N N W rl- M I� W N -on O N O V' O N01 V'O01W 01�01 I��VMMOV'MN�MNOW W01 I�WONWI�W WO 01 I� W I� N N N 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 O O O O O O O O O O O 0 0000000000000000000000000000000000000 o o000000000000000000000000000000000000 O 0000000000000000000000000000000000000 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 W O N O N O O O O O O O O N N O O N N O N N O N O O O O N N O N O N O N O O N W I� r r r W W W W I� W W W W W W W W W W W W W I� r r r r r r r r r r W W W W W W W W 01 01 01 01 01 01 O N N M V' 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 M M M M M M a O O O O O O O O O O O O O O O O v 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 v N N N N N N N N N N N N N N N N N Q Q 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 O z 0( W N N_ M W N Z Z N N N N N N N O M N � � O N N N M N N � N N o 000�000�000000� oo�o���0000000000�0000000�0000��oo�o�o V' V' V' V' V' V' M V' N W W � W W 01 N01O �Q)Q)Q)�Q) 01M 0101��O01�0101��01O� V' V'01N V' V'N V'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 O O O O N N N N N N N N N N N N N N N N Q Q 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 z O O N W O O O r W N z Z W I� r W V' Q1 W Q1 W O Q1 Q1 M I� W N M Q1 I� M O Q1 Q1 V' O N Q1 O W (O MOM M M M 0 N c W W N 0 � N 0000 0 00000000 W 0 cc co Q1� W W 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 � coo 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 0 0 0 0 0 0 0 0 0 0 0 0 0 O � 01 V' � I�01 OOOOOO OI�OO OO M I�MOW W��W V' 0001W 01 V'�I�M�V'V'O V'01MMMNNM0IM�V' 01MW W I� W M M V' O N O N N OOONO INN OOON(q .0101 .M N WN NO 01 V'Lq OVO01 �N 'V'W WN01 (qON W � 01 N O S 01 N W I� N S W I� � 01 N O W 01 � 01 I- M V' N O M M V' �N� 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 0 0 0 0 0 0 0 0 0 0 O � OOOOO N O N N OOONO INN N NNW WI�NOON MWNMNWO��I�rNV'V'O0IWNOM0IO W WOONN V) z z W a a _ in in 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 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 y > o 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 o z - 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ch rn N m t C CO N C R L M CO Ln CO N N � 10 co off' oo O co`� i.i y m oo E ni c " a W u a o R 0 0 0 0 co CO CO O 0 O O (7 3 o O co O co N O F N N V O V O O u) N O O N ":, NV R O) O cof- N CO O No N� V V Lo M W O Rco 0) M m V I� M V W D o) V No rl F co � co N I-- f0 fA R o o o 0 O Co c0 c0 0 O � O o Q, o O V d) � o 0; F N V O "'.... co O O O O O 0) Lo co M m W N 7 O N M o)o Lo CO t N N N CO CO O N II- N w co M R C � N N 0) co N CO N f0 r � n.; IIIII Jlo N o o -o F C 0 0 T IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII 7 O 0U Y R N m " Y O` E o �..� °.. v O O D �C)cD.5 N O Monthly Statistics Report Search Criteria Used Year: 2026; Starting Month: July; Organization: Hutchinson Utilities Commission; Is an Annual Report: Unchecked; IEEE 1366 STATISTICS 2025 ( 07/01/2025 - 07/31/2025) 2026 ( 07/01/2026 - 07/31/2026 ) SAI D I 0 0.5024174 SAIFI 0 0.005774913 CAIDI 0 87 ASAI 0 99.99887 Momentary Interruptions 0 0 Sustained Interruptions 0 2 MONTHLY SAIDI CHART Average SAIDI °°°9 Manth Iy SAID] 1.76 1.58 1.41 ut 1.23 1.05 .w.,. 0.88 0.7 0.53 0.35 0.18 Mointhi MONTHLY SAIFI CHART Average SAIFI °°°mi°. MonthIy SAIFI 0.071 . 0.064 GJ 0.058 Q 0.051 u 0.045 C 0.039 0 cs 0.032 a� E 0.02s 0.019 0.013 I 0.006 PRIMARY OUTAGE CAUSES (COUNT) FNIeat: '100'1,'; Heat Primary Outage Causes (Count) PRIMARY OUTAGE CAUSES (DURATION) Hlea :: 1009,.,; (:3741 Primary Outage Causes (Duration) Heat 3741 CIRCUIT RANKING - WORST PERFORMING Ranked by Outage Count Circuit Fdr#18 Plant 1 Fdr#14 Plant 1 Ranked by Customer Interruptions Circuit Fdr#18 Plant 1 Fdr#14 Plant 1 Substation Substation Ranked by Customer Minutes of Duration Circuit Substation Fdr#18 Plant 1 Fdr#14 Plant 1 Number of Outages Customer Interruptions 30 13 Customer Minutes of Duration 3,000 741 TOP 10 OUTAGES FOR THE MONTH Address 448 California lot 157 (/n/esams/reliability- tracker/d ash board/outages/1 074899/details) 714 Jefferson St SE (/n/esams/reliability- tracker/d ash board/outages/1 076190/details) Total Customers Affected for the Month: 43 Average Customers Affected per Outage: 21 Customer Customers Minutes of Interrupted Duration Interruption 30 100 3000 13 57 741 Start Date 7/12/2026 6:45:00 PM 7/15/2026 7:00:00 PM Work Order Description 12402 Plant 1 Combustible Gas Detection System 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 12601 Power Gates Plant 2 12602 Plant 1 and 2 Cooling Tower VFD's 12603 Unit 5 HUG Upgrade 12604 Plant 1 Web Master Upgrade 12605 Rooftop Solar 12606 Unit 1 LPT Stage 2 Blade Replacement Electric Production Total Materials Labor Budgeted 60,000.00 60,000.00 50,000.00 5,000.00 55,000.00 148,067.00 148,067.00 35,000.00 35,000.00 130,000.00 130,000,00 50,000.00 _ 50,000.00 80,000.00 - 80,000.00 40,000.00 5,000.00 45,000.00 351,000.00 - 351,000.00 7,870.00 - 7,870.00 $ 951,937.00 $ ... 10 10,000.00 $ 9 m 61,937.00 $ Total Actual 46,384.67 22,519.95 20,699.10 310,619.80 400,223.52 $ Difference 46,384.67 (60,000.00) (55,000.00) (148,067.00) (35,000.00) (107,480.05) (50,000.00) (80,000.00) (24,300.90) (351,000.00) (7,870.00) 310,619.80 (561,713.48) Work Order Description 22301 Hutch Sub Transformer Upgrade Engineering 22401 Hutch Substation Transformer 22402 McLeod Sub Relay Replacement 22405 3M Sub SCADA Phase 2 22503 Plant 1 Sub Circuit Breakers 22504 Plant 1 Sub Rebuild Distribution 22522 Data Center 22601 Willmar Line Rebuild 22602 Plant 1 Sub Rebuild Transmission 22603 Pole Repair and Replacement 22604 Station Equipment 22605 Plant 1 Batteries 22606 Install Duct 22607 Reconductor Feeder 19 22608 New Developments 22609 Then Landing Apartments 22610 Burns Manor Apartments 22611 The Farmhouse Memory Care 22612 Scooters Coffee 22613 Plant 1 Sub Rebuild XFMR 22614 Transformer Replacements 22615 Transformer New Developments 22616 The Landing Apartments 22617 Burns Manor Apartments 22618 The Farmhouse Memory Care 22619 Scooters Coffee 22620 Meters 22621 LED Street Light Conversion Electric Distribution Total Total ._.. Materials , Labor Budgeted Actual Difference - 9,038,307.68 9,038,307.68 1,566,368.65 1,566,368.65 400,000.00 400,000.00 22,993.00 (377,007.00) _. 90,068.66 90,068.66 112,497.00 112,497.00 - 79,616.20 79,616.20 20,000.00 5,000.00 25,000.00 181,849.42 156,849.42 15,000.00 - 15,000.00 - (15,000.00) 10,000.00 - 10,000.00 - (10,000.00) 15,000.00 2,500.00 17,500.00 - (.17,500.00) 18,000.00 65,000.00 83,000.00 11,065.14 (71,934,86) 80,000.00 20,000.00 100,000.00 121,864.49 21,864.49 60,000.00 15,000.00 75,000.00 20,401.20 (54,598.80) 15,000.00 5,000.00 20,000.00 27.17 (19,972.83) 15,000.00 5,000.00 20,000.00 - (20,000.00) 7,000.00 2,000.00 9,000.00 - (9,000.00) 7,000.00 2,000.00 9,000.00 - (9,000.00) - - 165.74 165.74 50,000.00 15,000.00 65,OOO.00 2,119.26 (62,880.74) 60,000.00 15,000.00 75,000.00 673.83 (74,326,17) 20,000.00 2,000.00 22,000.00 2,523.53 (19,476.47) 20,000.00 2,000.00 22,000.00 - (22,000.00) 20,000.00 2,000.00 22,000.00 - (22,000.00) 15,000.00 2,000.00 17,000.00 - (17,000.00) 36,000.00 - 36,000.00 2,704.00 (33,296.00) 175,000.00 mm- 175,000 00 -� _ 175,000.00 $ 1,058,000.00 $ 159, 500.00 $ 1,217,500 00 11, $ 253 244.97 10,035,744.9 7 Work Order Description 62511 DRS #5 Upgrades 62601 Misc Developments & System Improvements 62602 City Projects 62603 Install 6" Line from Plant 1 to School Road 62604 Improvements to Regulator Stations 62605 Make DRS#11 at Plant 1 62606 Service Lines, The Landing, Burns Manor 62607 Service lines to Hjerpe 62608 Meters, AMI, and All Fittings 62609 Residential Regulators 62610 Industrial Metering and Regulation 62611 3m Boiler Bypass Rund 62612 Fairfax Micro Motion Elite Coriolis Meter Natural Gas Materials Labor 23,500.00 2,000.00 25,000.00 5,000.00 10,000.00 4,000.00 370,000.00 12,000.00 10,000.00 3,500.00 14,000.00 2,000.00 65,000.00 15,000.00 250,000.00 10,000.00 25,000.00 3,500.00 3,000.00 3,000.00 95, $ 795,500.00 $ 60 000.00 $ Total Total Budgeted Actual Difference 25,500.00 3,746.24 753.76) 30,000.00 7,640.35 (22,359.65) 14,000.00 2,297.25 (11,702.75) 382,000.00 108,367.55 (273,632.45) 13,500.00 7,346.33 (6,153.67) 16,000.00 5,599.82 (10,400.18) 80,000.00 18,737.56 (61,262.44) - 16,660.48 16,660.48 260,000.00 27,746.90 (232,253.10) - 1,066.70 1,066.70 28,500.00 35.00 (28,465.00) 6,000.00 2,407.99 (3,592.01) _ ........ - 24,777.46, — ..... 24,777.46 855,500.00 $ 226,429.63 $ (629,070.37) HUTCHINSON UTILITIES COMMISSION Board Action Form �rre tit' 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. Hutchinson Utilities Commission ii. Establishing a New Electric/Natural Gas Account iii. Deposit Requirement — Residential iv. Deposit Requirement — Commercial/Industrial V. Terminating Electric/Natural Gas Service by Customer vi. Definition of Your Bill vii. Errors in Billing viii. Payment of Your Bill ix. Automatic Bill Payment Plan X. Budget Payment Plan xi. Explanation of Billing Procedure xii. Disconnection of Residential Services by HUC xiii. Disconnection of Commercial Services by HUC xiv. After Hours Reconnection Policy xv. Landlord Acknowledgment xvi. Inserts with Utility Bills xvii. Identity Theft — "Red Flag Program" xviii. Minnesota Cold Weather Rule xix. Minnesota Government Data Practices Act and Public Records Request BOARD ACTION REQUESTED: None Fiscal Impact: Included in current budget: Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: HUTCHINSON UTILITIES COMMISSION (Hereafter referred to as HUC) A five -member Commission governs HUC. The Commission members are appointed by the Mayor and the City Council to each serve a five-year term. The Commission meets at 3.00 p.m. the last Wednesday of each month. The following policies are reviewed and approved by the Commission and it reserves the right to make changes, and/or to adopt new and amended policies, as it deems necessary from time to time. The Commission also reserves the right to vary from its policies in special circumstances. HUC is a municipal utility that is owned by its citizens, through the City Council and its political subdivision, the Hutchinson Utilities Commission. Public/Customer Hours Monday through Friday 7.30 a.m. to 4.00 p.m. Address & Phone 225 Michigan Street SE Hutchinson, MN 55350-1905 (320) 587-4746 Emergency Service Electric Outage (320) 234-0544 Gas Emergency 1-877-593-3973 (320) 587-4745 Customer Service (320) 234-0502 Web Address www.hutchinsonutilities.com Facebook @hutchinsonutilitiescommission Establishing a New Electric/Natural Gas Account New services and meters are read or installed only during normal business hours. A new service installation requires a 24-hour notice. Deposit Requirement — Residential New Residential Customers: Application for Service An application for service is required to be completed and submitted prior to receiving service. The application shall be accompanied by proof of customer identification, preferably photo identification. Deposit A deposit is required for all new residential customers, prior to the utility account being established in the customer's name. HUC will conduct an internal account review for all new customer applications. If the results of the review indicate the customer has an outstanding balance with HUC for previously provided services, the outstanding balance shall be paid, in addition to the required deposit, prior to the customer receiving service. The amount of the deposit is equal to two times the average monthly bill for the property/address as determined by HUC. For new residential construction with no billing history, HUC will determine the rates based on similar construction. A deposit may only be waived if the customer provides verification of a satisfactory payment history for the previous 12-month period from their current or previous utility provider indicating, the customer paid all of their bills on time with no late payment fees attached, issued a disconnect notice and no delinquent or dishonored payments. Existing Residential Customers Moving Within Service Territory: A deposit is not required if the customer has a satisfactory payment history for the previous 12-month period, as defined previously. A deposit for existing residential customers moving within HUC service territory will be required prior to the utilities establishing the new account for any of the following reasons- 1. The customer has been disconnected, issued a disconnect notice or had a delinquent or dishonored payment in the previous 12 months. 2. Subsequent credit information indicates the initial application for service was falsified. 3. The customer has the ability to pay for the utility service, but during the cold weather rule months, had an arrears amount incurred during that period that was 60 days or more past due. If a deposit is required of a customer, the following will also apply: 1. If customer has no deposit with HUC, the customer will pay the deposit amount for the customer's new address. 2. If customer already has a deposit with HUC and this deposit amount is greater than the new deposit required for the new address, HUC will transfer the deposit from the customer's previous address to the new address. The balance of the deposit from the previous address will be applied to the customer's final bill for the previous address. If there is a remaining credit balance after paying the final bill, this will be applied to the new address account. 3. If the customer already has a deposit with HUC and this deposit amount is less than the new deposit required for customer's new address, HUC will transfer the deposit from the customer's previous address to the customer's new address. The customer will pay the balance of the deposit amount for the customer's new address, prior to the utilities being placed in their name. If a deposit is required the customer may request a written explanation for the requirement. Amount of Deposit: The amount of the deposit is equal to two times the average monthly bill for the property/address as determined by HUC. For new residential construction with no billing history, HUC will determine the rates based on similar construction. Refusal or Disconnection of Service: HUC may refuse or disconnect residential service for failure to pay a required deposit. Interest: Interest earned on a deposit is applied to the account as a credit on a calendar year basis. The rate of interest is determined by the Minnesota Department of Commerce and updated annually. When the customer moves out of the HUC service area, the account is finalized. Any deposit interest is applied to the account as a credit, and the deposit amount is applied to the final bill. If this results in a credit balance, a check is issued to the customer for the credit amount. Refund: The utility shall refund the deposit of a residential customer after 12 consecutive months of on -time payments (no late payment fees). If a customer makes a late payment in the initial 12 months of service, the deposit will be retained, until such time as the customer makes 12 consecutive monthly on -time payments and incurs no late payment fees. If the customer provides a payment history from their previous provider, and the payment history indicates no late payment fees and no dishonored checks, then HUC will refund the deposit. HUC must receive this information from the customer within 30 days of customer moving into our services. Refund at Termination of Service: On termination of residential service, and if the customer has a deposit with HUC, HUC shall credit the deposit, with accrued interest, to the customer's final bill and return any remaining balance within 30 days of issuing the final bill. Method of Refund: Any deposit amount and interest earned refunded to a residential customer shall be refunded to the customer's account as a credit unless requested by the customer to be refunded by check. Deposit Requirement — Commercial/Industrial Application for Service An application for service is required to be completed and submitted prior to receiving service. The application shall be accompanied by proof of customer identification, preferably photo identification, and their Federal Tax ID number. Deposit A deposit is required for all Commercial/Industrial customers, prior to the utility account being established in the customer's name. HUC will conduct an internal account review for all new customer applications. If the results of the review indicate the customer has an outstanding balance with HUC for previously provided services, the outstanding balance shall be paid, in addition to the required deposit, prior to the customer receiving service. Existing Commercial/Industrial Customers Moving Within Service Territory: A deposit will be waived if the Commercial/Industrial customer has a 24-month payment history with HUC indicating the Commercial/Industrial customer has not been disconnected, issued a disconnect notice or issued any dishonored checks. A deposit for existing Commercial/Industrial customers moving within HUC service territory will be required prior, to customer having utilities placed in their name, for the following reasons- 1. If the customer has been disconnected, issued a disconnect notice or any dishonored payment in the previous 24 months. 2. Subsequent credit information indicates the initial application for service was falsified. If a deposit is required of a customer, and; 1. If a customer has no deposit with HUC, the customer will pay the deposit amount for the customer's new address. 2. If a customer has a deposit with HUC and this deposit amount is greater than the new deposit required for customer's new address, HUC will transfer the deposit from the customer's previous address to the customer's new address. The balance of the deposit at the customer's previous address will be applied to the customer's final bill for the previous address. If there is a remaining credit balance after paying the final bill, this will be applied to the new address account. 3. If a customer has a deposit with HUC and this deposit amount is less than the new deposit required for customer's new address, HUC will transfer the deposit from the customer's previous address to the customer's new address. The customer will pay the balance of the deposit amount for the customer's new address, prior to the utilities being placed in their name. If a deposit is required, the customer may request a written explanation for the requirement. Amount of Deposit: The deposit shall be equal to the two highest bills for the past 12 months rounded to the nearest dollar. In the event that the building will be used for a different purpose than that of the previous tenant/owner, then similar use will be taken into consideration to determine the amount of deposit. The deposit may also be made by posting a performance bond or an Irrevocable Letter of Credit from an FDIC insured financial institution. These options will not earn any interest and will be terminated after 24 consecutive months of timely payments. In the event of a new building with no billing history, then similar construction will be used to establish the average monthly usage. Refusal or Disconnection of Service: Commercial/Industrial service may be refused or disconnected for failure to pay a required deposit. Interest: Interest earned on deposits is applied to the account as a credit on a calendar year basis. The rate of interest is determined by the Minnesota Department of Commerce and HUC obtains that information annually. When the Commercial/Industrial customer moves out of the HUC service area, the account is finalized. Any deposit with interest is applied to the account as credit, and the deposit amount is applied to the final bill. If this results in a credit balance, a check is issued to the customer for that credit amount. Refund: HUC shall refund the deposit of a Commercial/Industrial customer after 24 consecutive months of on -time payments (no late payment fees). If a customer is late in making payment, then the deposit will be retained, until such time as the customer makes 24 consecutive monthly on -time payments (no late payment fees). Refund at Termination of Service: On termination of Commercial/Industrial service, and if the customer has a deposit with HUC, HUC shall credit the deposit, with accrued interest, to the customer's final bill and return any remaining balance within 30 days of issuing the final bill. Method of Refund: Any deposit amount and interest earned refunded to a Commercial/Industrial customer shall be refunded to the customer's account as a credit unless requested by the customer to be refunded by check. Terminating Electric/Natural Gas Service by Customer When the utility service is shut off due to a customer's request, the electric meter will be removed and the gas meter will be turned off and locked. The electric meter socket and gas meter valve will have a blue seal placed on them. At the time a customer requests the service be turned on, HUC personnel will install the electric meter and unlock the natural gas meter valve. It is the customer's responsibility to turn on the natural gas meter valve and to light the pilot lights on all natural gas appliances, where appropriate. In the event the customer is unable to perform these tasks, it is the customer's responsibility to contact a plumbing or heating contractor to complete this work. Upon the request of a customer, utility services may be temporarily terminated and billing suspended for a specified period of time due to illness, vacation, and/or seasonal use. Temporary terminations are charged to the customer at the rate of $40 to disconnect and $40 to reconnect. A. Termination for Renters Electric and natural gas meters will be read and the final bill calculated when a renter informs HUC they no longer wish to retain HUC services. B. Termination for Residential/Commercial Owners Electric and natural gas will be shut off when the property owner requests HUC to disconnect services. For continuous service, the new owner must call HUC at a minimum of 24 hours in advance of the requested disconnect date, and make the necessary arrangements to have the electric/natural gas services transferred into their name. This eliminates terminating services at that address. C. Termination for Electrical Work If a homeowner needs an electric meter disconnected to do any electrical work, HUC will disconnect/reconnect the meter at no charge to the customer. Once the work is completed, HUC will need a copy of the State Board of Electricity Certificate of Inspection, before HUC will reconnect the electric meter. Definition of Your Bill Your bill provides: • Account number • Due date • Payment due • Pre -authorized payment to be drawn from your bank on due date (from checking/saving account) • Budget amount due if on the budget plan • Name/mailing address • Service address • Electric and fuel cost adjustments, if any • PIN # • Reading dates • Days used • Previous and current readings • Usage • Previous balance • Payments made and date paid • Electric and/or gas meter charges • Amount charged to each meter • Sales tax/Local tax/County tax • Any miscellaneous/trip charges • Account balance • Perforated top stub to remit with payment for timely and proper posting • If applicable, a message on the bottom of the statement indicating past due amount Meters are read approximately every 30 days. Estimated readings may also be taken if access to the meter is not possible or the meter has stopped working. Errors in Billing Overcharged customer accounts will be credited on the next statement or refunded on the final billing. Overcharges may only be refunded within three years of the billing error occurrence. Undercharged customer accounts may be billed for a correction within one year of the billing error occurrence and may be billed on a separate invoice, with an explanation of charges. Payment of Your Bill Payments are due by the date indicated on the statement. Payment Locations • HUC business office at 225 Michigan Street Southeast • Drop box at either the HUC business office or Hutchinson City Center Payment Methods • Cash, check or money order • automated phone system at (320)587-4746, Option VISA/MasterCard/Discover/E-check • automatic bank payment plan(Savings/Checking Account) • online at www.hutchinsonutilities.com • online reoccurring credit card payment • text using Invoice Cloud When paying in any manner other than cash, no change will be given. No second party or post-dated checks will be accepted and checks will not be held. An invalid payment due to nonsufficient funds or other circumstances is treated as a non- payment. If notification of the invalid payment is received by HUC, the customer will be charged a $30 processing fee. If paying by reoccurring credit/debit card, the customer needs to cancel their credit/debit card immediately if there has been an address change. When there is a change in the credit/debit card information that is used for reoccurring payments, the customer will be required to update the system with the new credit/debit card information. For billing questions, contact HUC customer service via e-mail at HUCbilling@hutchinsommn.gov Automatic Bill Payment Plan Customers may authorize automatic bill payment through ACH withdrawals from a checking/savings account, or with the use of a credit/debit card. These payments are withdrawn on the date the bill is due. To authorize the withdrawals or automatic payment from a checking/savings account, the customer must complete an Authorization form, which is available at the HUC business office or on the HUC website. To authorize automatic payment with a reoccurring credit/debit card, visit the HUC website under `Pay Your Bill'. If paying by reoccurring credit/debit card, the customer needs to cancel their credit/debit card immediately if there has been an address change. When there is a change in the credit/debit card information that is used for reoccurring payments, the customer will be required to update the system with the new credit/debit card information. Setting up, changing and cancelling reoccurring credit/debit card information can only be completed by the customer. The customer will receive their monthly utility billing statement showing the payment amount to be withdrawn. The customer may contact the HUC Customer Service Department before the amount is withdrawn to dispute the billing or with any questions. The customer will have approximately 10 days to review their bill before the money is withdrawn. If a customer's payment is dishonored for two consecutive months, the customer will be removed from the automatic payment plan and so notified. A service charge of $30 will be assessed to the customer's account for each dishonored payment occurrence. Budget Payment Plan A budget payment plan is available to residential customers who have been at their present location for a minimum of 12 continuous months. Procedures are in place for setting up and reviewing the budget payment plan calculation. Changes to the budget payment amount are made at the discretion of the Customer Service Department based on the customer's average bill from the previous 12 months. Customers will be notified, in writing, of any changes. A customer may concurrently participate in the budget payment plan by automatic bank payment plan or recurring credit cards. Explanation of Billing Procedure A bill for services is sent to the address provided by the customer approximately 3 to 5 days after the meters have been read. The customer has approximately 10 days to pay the bill in full by the stated due date. In accordance with state law, the City of Hutchinson and its related entities shall have 35 days to pay bills in full. Bills paid after the due date will incur the following charges: • A 1 % per month late payment charge on any unpaid balance. • A $15 processing fee. A late notice warning of pending disconnection is mailed to the customer and provides the customer with at least 30 days after the notice has been mailed to pay the bill or contact the Customer Service Department to make other arrangements. Examples of other arrangements may include establishing a budget payment plan or payments by other agencies on the customer's behalf. Failure to make payment by the stated due date and time will be considered a violation of the notice of pending disconnection. If full payment or other arrangements have not been made by the deadline, HUC personnel are sent to the meter location to disconnect utility services (see disconnection of services section). IT IS THE CUSTOMER'S RESPONSIBILITY TO PAY BILLS ON TIME AND IN FULL. A dishonored payment will be assessed a $30 processing fee. A dishonored payment made to avoid disconnection, to get reconnected, or for a deposit for service will be assessed a $30 processing fee; plus: a. A $40 trip charge to deliver a door hanger, a notice advising the customer they have 24 hours to make the full notice payment. Acceptable forms of payment include cash, money order or credit card. b. A $40 trip charge to disconnect service if payment is not received in the form of cash, money order or credit card. C. A $40 trip charge to reconnect service with payment made in the form of cash, money order or credit card. IT IS THE CUSTOMER'S RESPONSIBILITY TO KEEP HUC FULLY ADVISED OF ANY CHANGE OF ADDRESS. Disconnection of Residential Services by HUC 1. Residential utility service may be disconnected for any of the following reasons: • Failure to pay by the deadline on a delinquent account or failure to comply with the terms of the budget payment plan. • Failure to contact HUC to gain protection from disconnection under the Cold Weather Rule. • Failure to maintain the payment agreement established under the Cold Weather Rule. • Failure to comply with deposit requirement. • Failure to pay for merchandise or charges for non -utility service billed by HUC. • Payment of bill with a dishonored check. • Failure to provide authorized utility personnel access to utility equipment. • HUC shall disconnect residential utility service, without notice, where service has been reconnected without HUC's authorization. • HUC shall disconnect residential utility service, without notice, where it has reasonable evidence that utility service is being obtained by potentially unsafe devices or potentially unsafe methods that stop or interfere with the proper metering of the utility service. • HUC may disconnect residential utility service, without notice, where a dangerous condition exists for as long as the condition exists. • At the request of the property owner, as long as it's currently in owner's name and no tenant occupies property. • At the request of the realtor/bank, as long as it's currently in their name. • If an account owner or property owner does not notify us, within three (3) business days following disconnection of service for non-payment, a final bill will be processed and the account will be closed. 2. HUC must have a Landlord Agreement on file acknowledging that landlord/owner will be responsible for all utility charges after the read-out date requested by a tenant. Failure of the landlord/owner to execute this form will lead to a shut off of services on the read-out date requested from tenant. 3. For all items mentioned in number 1 and 2 above, a disconnect/reconnect fee shall be applied. The disconnect/reconnect fee is as follows: • A $40 trip charge to disconnect. • A $40 trip charge to reconnect, payment shall be made with cash, money order or credit card during regular business hours. • After hours reconnection will follow the After Hours Reconnection Policy. 4. In the event that the customer pays after the deadline given on the disconnect letter, and the payment is processed before physical disconnection, a $40 Removal from Disconnect List Fee will be applied to their account. 5. If a realtor/bank requests to have service reconnected for one day in order to perform an inspection, a $40 trip charge to reconnect and a $40 disconnect charge will be applied. 6. In the event of unauthorized use of, or tampering with the equipment of HUC, a tampering charge of $100 will be assessed to the customer's account. The appropriate law enforcement agency will be notified. HUC reserves the right to charge the customer for the cost of repairs to the equipment of HUC. 7. A dishonored payment will be assessed a $30 processing fee. 8. A dishonored payment to avoid disconnection, or to get reconnected, will be assessed a $30 processing fee; plus: • A $40 trip charge to deliver a door hanger, giving customer 24 hours to make payment good with cash, money order or credit card. 9. HUC is not required to furnish residential service under conditions requiring operation in parallel with Backup generating equipment connected to the customer's system if such operation is hazardous or may interfere with its own operations or service to other customers or operation as a condition or rendering service under such circumstances. FAILURE TO RESPOND TO THE DISCONNECT NOTICE SET FORTH ON THE BILL OR FAILURE TO PAY FOR SERVICES RENDERED BY HUC MAY RESULT IN THE DISCONNECTION OF SERVICES TO THE PROPERTY WITHOUT ANY ADDITIONAL NOTICE TO THE CUSTOMER. IT IS THE CUSTOMER'S RESPONSIBILITY TO PAY FOR SERVICES RENDERED AND TO ADVISE HUC OF ANY CHANGE IN ADDRESS. NEITHER HUC NOR THE CITY OF HUTCHINSON, NOR ANY OF THE AGENTS, EMPLOYEES OR REPRESENTATIVES OF THE CITY OF HUTCHINSON OR HUC, WILL BE RESPONSIBLE FOR ANY DAMAGES OR CLAIMS INCURRED AS A RESULT OF THE DISCONNECTION OF SERVICES. Residential utility service may not be disconnected or refused for any of the following reasons: • Delinquency in payment for services by a previous occupant of the premises to be served. • Failure to pay for a different rate classification of utility service. • Failure to pay the account of another customer as guarantor thereof. • Failure to pay charges arising from any underbilling occurring more than 1 year prior to the current billing and due to any misapplication of rates or faulty metering. • If a customer is on the Budget Payment Plan and has a credit balance on account. • Tenant pays current month on account in landlord's name. Disconnection of Commercial Services by HUC 1. Commercial utility service may be disconnected for any of the following reasons: • Failure to pay by the deadline on a delinquent account. • Failure to comply with deposit requirement. • Failure to pay for merchandise or charges for non -utility service billed by HUC. • Payment of bill with a dishonored check. • Failure to provide authorized HUC personnel access to utility equipment. • HUC shall disconnect commercial utility service, without notice, where service has been reconnected without HUC's authorization. • HUC shall disconnect commercial utility service, without notice, where it has reasonable evidence that utility service is being obtained by potentially unsafe devices or potentially unsafe methods that stop or interfere with the proper metering of the utility service. • HUC may disconnect commercial utility service, without notice, where a dangerous condition exists for as long as the condition exists. • At the request of the property owner, as long as it's currently in owner's name and no tenant occupies property. • At the request of the realtor/bank, as long as it's currently in their name. 2. HUC must have a Landlord Agreement on file acknowledging that landlord/owner will be responsible for all utility charges after the read-out date requested by a tenant. Failure of the landlord/owner to execute this form will lead to a shut off of services on the read-out date requested from tenant. 3. For all items mentioned in number 1 and 2 above, a disconnect/reconnect fee shall be applied. The disconnect/reconnect fee is as follows: • A $40 trip charge to disconnect. • A $40 trip charge to reconnect, payment shall be made with cash, money order or credit card during regular business hours. • After hours reconnection will follow the After Hours Reconnection Policy. 4. In the event that the customer pays after the deadline given on the disconnect letter, and the payment is processed before physical disconnection, a $40 Removal from Disconnect List Fee will be applied to their account. 5. If a realtor/bank requests to have service reconnected for one day in order to perform an inspection, a $40 trip charge to reconnect and a $40 disconnect charge will be applied. 6. In the event of unauthorized use of, or tampering with the equipment of HUC, a tampering charge of $100 will be assessed to the customer's account. The appropriate law enforcement agency will be notified. HUC reserves the right to charge the customer for the cost of repairs to the equipment of HUC. 7. A dishonored payment will be assessed a $30 processing fee. 8. A dishonored payment made to avoid disconnection, or to get reconnected, will be assessed a $30 processing fee; plus: • A $40 trip charge to deliver a door hanger, giving customer 24 hours to make payment good with cash, money order or credit card. 9. HUC is not required to furnish commercial service under conditions requiring operation in parallel with Backup generating equipment connected to the customer's system if such operation is hazardous or may interfere with its own operations or service to other customers or operation as a condition or rendering service under such circumstances. FAILURE TO RESPOND TO THE DISCONNECT NOTICE SET FORTH ON THE BILL OR FAILURE TO PAY FOR SERVICES RENDERED BY HUC MAY RESULT IN THE DISCONNECTION OF SERVICES TO THE PROPERTY WITHOUT ANY ADDITIONAL NOTICE TO THE CUSTOMER. IT IS THE CUSTOMER'S RESPONSIBILITY TO PAY FOR SERVICES RENDERED AND TO ADVISE HUC OF ANY CHANGE IN ADDRESS. NEITHER HUC NOR THE CITY OF HUTCHINSON, NOR ANY OF THE AGENTS, EMPLOYEES OR REPRESENTATIVES OF THE CITY OF HUTCHINSON OR HUC, WILL BE RESPONSIBLE FOR ANY DAMAGES OR CLAIMS INCURRED AS A RESULT OF THE DISCONNECTION OF SERVICES. Commercial utility service may not be disconnected or refused for any of the following reasons: • Delinquency in payment for services by a previous occupant of the premises to be served. • Failure to pay for a different rate classification of utility service. • Failure to pay the account of another customer as guarantor thereof. • Failure to pay charges arising from any underbilling occurring more than 1 year prior to the current billing and due to any misapplication of rates or faulty metering. • Tenant pays current month on account in landlord's name. After Hours Reconnection Policy No after hours reconnections will be done from 9.00 p.m. to 7.30 a.m. After hours reconnection fees: A $150 Reconnection Fee will be charged for any reconnection that is done: • From 5.00 p.m. to 9.00 p.m. on Monday through Friday • From 7.30 a.m. to 9.00 p.m. on Saturdays A $200 Reconnection Fee will be charged for any reconnection that is done: • From 7.30 a.m. to 9.00 p.m. on Sundays or Holidays Payments must be made prior to reconnecting utilities. Office hours are 7.30 a.m. to 4.00 p.m. Monday through Friday, excluding holidays. After hour payments can only be made with credit card, debit card or electronic check. Holidays include the following: New Year's Day, Martin Luther King Day, President's Day, Memorial Day, Juneteenth, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, Christmas Eve Day, and Christmas Day. Landlord Acknowledgement A signed Landlord Acknowledgement provides the following: • Confirmation and documentation of the landlord/owner. • Request of HUC to provide utility service to tenants. • The understanding that the tenant will be responsible for all utility costs between the date service is required by the tenant and the date the tenant requests read- out of services. • The landlord/owner agrees to be responsible for and to pay all utility charges from the read-out date given by the tenant until services are established with a new tenant. • The understanding that failure to pay these charges could result in disconnection of electric service. HUC is not responsible for any damages alleged to be caused by service disconnection. Disconnection/reconnection fees apply. • The landlord/owner has the option to contact HUC to confirm that the utility service has been placed in the tenant's name. • The landlord /owner can request the disconnection of services as long as the account is in the landlord's/owner's name. Disconnection/reconnection fees apply. Inserts with Utility Bills Generally, only material which applies directly to HUC business may be inserted into monthly utility bill mailings. HUC may approve the inclusion of other items, as appropriate. Identity Theft — "Red Flag Program" It shall be the policy of HUC to establish an identity theft prevention program, also known as the "Red Flag Program". HUC has an identity theft program in place called the "RED FLAG PROGRAM", pursuant to the Federal Trade Commission's Red Flags Rule, which implements Section 114 of the Fair and Accurate Credit Transactions Act of 2003. Internal procedures have been established whereby employees of HUC have been trained on how to recognize and what procedures to follow if the employee suspects an identity theft is taking place. Implementation of the Red Flag Program is the responsibility of the Account Supervisor. Administration and maintenance of the Red Flag Program is the responsibility of the Financial Manager. Minnesota Cold Weather Rule 2021 Minnesota Statutes 216B.097 Cold Weather Rule; Cooperative or Municipal Utility Subdivision 1. Application; notice to residential customer. (a) A municipal utility or a cooperative electric association must not disconnect and must reconnect the utility service of a residential customer during the period between October 1 and April 30 if the disconnection affects the primary heat source for the residential unit and all of the following conditions are met: (1) The household income of the customer is at or below 50 percent of the state median household income. A municipal utility or cooperative electric association utility may (i) verify income on forms it provides or (ii) obtain verification of income from the local energy assistance provider. A customer is deemed to meet the income requirements of this clause if the customer receives any form of public assistance, including energy assistance, that uses an income eligibility threshold set at or below 50 percent of the state median household income. (2) A customer enters into and makes reasonably timely payments under a payment agreement that considers the financial resources of the household. (3) A customer receives referrals to energy assistance, weatherization, conservation, or other programs likely to reduce the customer's energy bills. (b) A municipal utility or a cooperative electric association must, between August 15 and October 1 each year, notify all residential customers of the provisions of this section. Subdivision 2. Notice to residential customer facing disconnection. (a) Before disconnecting service to a residential customer during the period between October 1 and April 30, a municipal utility or cooperative electric association must provide the following information to a customer: (1) a notice of proposed disconnection; (2) a statement explaining the customer's rights and responsibilities between August 15 — October 1; (3) a list of local energy assistance providers; (4) forms on which to declare inability to pay; and (5) a statement explaining available time payment plans and other opportunities to secure continued utility service. (b) At the same time that notice is given under paragraph (a), the utility must also give written or electronic notice of the proposed disconnection to the local energy assistance provider and the department. Subdivision 3. Restrictions if disconnection necessary. (a) If a residential customer must be involuntarily disconnected remotely using advance metering infrastructure or physically at the property being disconnected between October 1 and April 30 for failure to comply with subdivision 1, the disconnection must not occur: (1) on a Friday, unless the customer declines to enter into a payment agreement offered that day in person or via personal contact by telephone by a municipal utility or cooperative electric association; (2) on a weekend, holiday, or the day before a holiday; (3) when utility offices are closed; or (4) after the close of business on a day when disconnection is permitted, unless a field representative of a municipal utility or cooperative electric association who is authorized to enter into a payment agreement, accept payment, and continue service, offers a payment agreement to the customer. Further, the disconnection must not occur until at least 30 days after the notice required in subdivision 2 has been mailed to the customer or 15 days after the notice has been personally delivered to the customer. (b) The customer must not be disconnected until the utility attempts to confirm whether the residential unit is actually occupied, which the utility may accomplish by. (1) visiting the residential unit; or (2) examining energy usage data obtained through advanced metering infrastructure to determine whether there is energy usage over at least a 24-hour period that indicates occupancy. (c) A utility may not disconnect a residential customer who is in compliance with section 21613.098, subdivision 5. (d) If, prior to disconnection, a customer appeals a notice of involuntary disconnection, as provided by the utility's established appeal procedure, the utility must not disconnect until the appeal is resolved. (e) For the purposes of this section, "advance metering infrastructure" means an integrated system of meters, communication networks, and data management systems that enables tow -way communication between a utility and its customers. Subdivision 4. Cost Recovery. A municipal utility or cooperative electric association may recover the reasonable costs of disconnecting and reconnecting a residential customer, based on the costs of providing notice to the customer and other entities and whether the process was accomplished physically at the property being disconnected or reconnected or remotely using advanced metering infrastructure. Minnesota Government Data Practices Act and Public Records Request HUC is in compliance with Minnesota Government Data Practices Act and Public Records Request. Billing information is available upon signing `Consent To Release Private Data' form. Forms are available at the office of HUC. Business information is available upon signing `Information Disclosure Request' form. Forms are available at the office of HUC. HUTCHINSON UTILITIES COMMISSION ^I'�xP61Tti'°" Board Action Form Agenda Item: Approve Req 010690 Power Gate and Camera Install Electrical Work at Plant 2 Presenter: Mike Gabrielson Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: This requisition is for the installation of electric wire to the power gate and two cameras at the plant that will be pointed towards both entrances of the plant. After multiple attempts to receive a second quote from contractors only one quote was submitted by Design Electric. BOARD ACTION REQUESTED: Approve Requisition 010690 Fiscal Impact: $28,373 Included in current budget: Yes Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: IHI UT iU H II HI S U HII UT'IIILIITIIIE'S a I(,� ii'JG 11�p Ili II I! � �a II ii';� If1i DESIGN ELECTRIC, INC PO BOX 1252 SAINT CLOUD, MN 56302 Note Description: Plant 2 Power Gates and Camera Install PURCHASE REQUISITION HUTCHINSON UTILITIES COMMISSION 225 MICHIGAN ST SE HUTCHINSON, MN 55350 Phone:320-587-4746 Fax:320-587-4721 Date Requisition No. 08/18/2026 010690 Required by: Requested by: mgabrielson Item No. Part No. Description Qty Unit Due Date Unit Price Ext. Amount POWER GATES AND CAMERA INSTALL - MFG. PART: 1 1.00 EA 09/12/2026 $28,373.000 $28,373.00 Total: 28,373.00 Date Printed: 08/18/2026 Requisitioned By: mgabrielson Page: 1/1 PROPOSAL Page 1 of 1 D ESI �"N ���IIIWI!011� .w ELECTRIC INC. ll°feSiig17 11 11er G»rh1,,,,,, llii C. 1162 MN HWY 7 East Hutchinson, MN 55350 COMM Y' III''I",IIY' � I I ION (, 20) 151z.,7-3030 www.DesignElect.com St. 011U1,'1 1111 I 320) 2152 1111 '15;,' PROPOSAL SUBMITTED T0: PHONE DATE 8-5-2026 Hutchinson Utilities 320-583-0895 STREET JOB NAME Power Gate and Camera Install CITY, STATE AND ZIP CODE JOB LOCATION Hutchinson MN FAX DATE OF PLANS 5-28-2026 ATTN: Mike Gabrielson JOB PHONE 320-583-0895 Proposal for the underground install of electrical from the utility building to the west power gate. 2-1" PVC conduits 2-120V 20A circuits #8thhn due to voltage drop Utilize existing breakers in the panelboard Installation of 2 PTZ cameras mounted on the NE and NW corner of the building with a CAT6 cable from each to originate at the control center which is located in the adjacent building approx. 275' from the camera. A monitor will also be supplied. Utilize existing conduits for the install of the CAT6 cable. Utilize existing 120v for the camera system. Cameras to be cabled. No conduit included. Includes: Electrical Inspection Labor Materials Technical Support Programming Final Commissioning Trenching Plowing Working hours Mon -Fri. 7-4:00pm Camera allowance: $21,000 Does not include: Concrete or asphalt work of any kind Painting Overtime Total: $28,373.00 We propose hereby to furnish material and labor — complete in accordance with the above specifications, for the sum of: Dollars: See Above Payment to be made as follows: All material is guaranteed to be as specified. All work to be completed in a professional manner Authorized Signature: according to standard practices. Any alteration or deviation from above specifications involving extra Shane HeTdina costs will be executed only upon written orders, and will become an extra charge over and above the estimate. All agreements contingent upon strikes, accidents or delays beyond our control. Owner to carry fire, tornado and other necessary insurance. Our workers are fully covered by Worker's Note: This proposal may be withdrawn by us if not Compensation Insurance. Price above is based on standard AGC contract and insurance limits. accepted within 30 days. We reserve the right to charge for any attorney fees that would be associated with collecting any money owed on this contract. We reserve the right to place one advertising sign at this project location. There is no bond included unless noted otherwise. Acceptance of Proposal — The above prices, specifications and conditions are satisfactory and are hereby accepted. You are authorized to do the work as specified. Payments will be made as outlined above. Signature: Date of Acceptance: Signature: HUTCHINSON UTILITIES COMMISSION ^I'�xP61Tti'°" Board Action Form Agenda Item: Approve Req 010691 Install Automated Pivot Gate Presenter: Mike Gabrielson Agenda Item Type: Time Requested (Minutes): 5 New Business Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: HUC is looking to purchase an Automated Pivot gate at Plant 2 as part of the continual efforts too secure HUC's critical infrastructure. Plant 2 has critical natural gas infrastructure housed on site along with generation equipment that should have greater security measures in place. The gate would be installed at the West entrance of the plant. The contractor will also be repairing the swing gates at the East entrance as well as 5 post that have pushed out of the ground. Town & Country was the low bidder of this process. BOARD ACTION REQUESTED: Approve Requisition 010691 Fiscal Impact: $48,420 Included in current budget: Yes Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: IHI UT iU H II HI S U HII UT'IIILIITIIIE'S a I(,� ii'JG 11�p Ili II I! � �a II ii';� If1i TOWN & COUNTRY FENCE 8511 XYLON AVE N PURCHASE REQUISITION HUTCHINSON UTILITIES COMMISSION 225 MICHIGAN ST SE HUTCHINSON, MN 55350 Phone:320-587-4746 Fax:320-587-4721 BROOKLYN PARK, MN 55445-1820 Note Description: Plant 2 Power Gates Date Requisition No. 08/18/2026 010691 Required by: Requested by: mgabrielson Item No. Part No. Description Qty Unit Due Date Unit Price Ext. Amount INTALL AUTOMATED PIVOT GATE AND REPAIR - 1 MFG. PART: 1.00 EA 10/22/2026 $48,420.000 $48,420.00 Total: 48,420.00 Date Printed: 08/18/2026 Requisitioned By: mgabrielson Page: 1/1 �/iii j „'%%///l'Town & Count 8511 Xylon Avenue North I Brooklyn Park, MN 55445 Phone: 763-425-5050 1 Fax: 763-425-9006 Email: , p,ul ( '�K. "�^n We inr� I Website: www.tcfence.com ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,, Hutchinson Utilities — Mike Gabrielson 320.583.0895 8-5-2026 PROPOSAL SUBMITTED TO I PHONE I DATE Plant 2 — automated Pivot Gate STREET JOB NAME 1100 Industrial Blvd SE, Hutchinson, MN 55350 CITY, STATE AND ZIP CODE JOB LOCATION We hereby submit specifications and estimates for: Furnish and install (1) 20' wide, automated pivot gate into the existing fence line. The current double swing gate will be removed and disposed of. The system will be built with the following materails. • AutoGate brand — Pivot Gate. 20' x 6'+B W galvanized chain -link material. • Full arctic package • UL325 safety devices. • (1) gooseneck stand for keypad or (fob system by others) • (3) preformed loops to be buried in gravel drive. (2) shadow and (1) free exit. Chain -link fence and gate repairs to the east. • Remove and replace (2) 4" gate posts. • Remove and replace (5) 2.5" line posts. • Replace the chain -link fence fabric on (1) gate leaf. • Replace (3) loop tops. TOTAL PRICE INSTALLED - $48,420.00 Notes/Exceptions: • Price does not include clearing offence line, dirt work, grading, compaction/testing, staking, or survey. Responsibility of Owner. • Price does not include any bond or unemployment insurance. For Performance and Payment Bond, add the greater of $8.20/$1,000.00 or a minimum charge of $200. For Unemployment Insurance, add the greater of $20.00/$1,000.00 or a minimum charge of $200. • Priced for completion during 2026 Construction season. • Electrical grounding is not included, by others. • Additional charges will apply if a secondary sweep/locate is required • Hydro -vac excavation or core drilling of holes is not included. • Price does not include work during frozen weather conditions. • Town & Country Fence is a member of PEC Veriforee, Avetta, ISNetworld, and Gold Shovel Standard. • If additional safety connection fees are required, such costs are not included in this price and additional fees may apply. • SD Excise taxis not included and will be the responsibility of the General. Certificate required if awarded to Town & Country Fence. • This proposal supersedes any previous proposals (all of which are rescinded/revoked and no longer valid); any plan addenda or revisions issued after this proposal are not part of this proposal and Town & Country Fence is not bound to; this proposal automatically becomes part of any subsequent contract signed by Town & Country Fence, regardless of whether this proposal is signed by the recipient of this proposal. Terms of Payment to be made as follows: Material draw at 60% of contract value, monthly progress billings, and balance upon completion, unless otherwise specified above, payment due upon receipt and subject to approved credit. Ptrchaser agrees to indemnify, and hold harmless Town and Courmy Fence and its agents from and against any and all claims, liabilities and damages, including outside and in-house attorneys' fees and costs, arising from or related any failure to erect fence, guardrail, or other products on or within property lines; any failure to comply with by-laws, restrictive covenants, burildhig codes or other restrictions; encroachment or interference with any easement damage to any improvements, including underground sprinklers, utilities, including wires or pipes; frost heave; personal inpuy or deatln; removal offence or products. Purchaser agrees that Town and Cormtny Fence's liability shall not exceed the amount paid to it under this Proposal. Town and Coumtny Felice shall not be liable for any direct, indirect special, incidental, or consequential damages. Purchaser agrees to be responsible for excavated soil or Town and Country Felice shall dispose of soil for an additional charge. All work to be connpleted accorcling to standard industry practices. Any alteration or deviation from this proposal requires Town and Courmy Fence's prior written consent zed shall automatically become part of zed subj ect to this Proposal. Any additional costs fronn any such change shall result in an extra charge, which Purchaser agrees to pay. Purchaser agrees to pay Town and Country Fence's outside and in-house attorneys' fees and costs in the collection and enforcement of this Proposal. This Proposal contingent upon strikes, accidents or delays beyond Town and Country Fence's control and supersedes all prior written or oral agreements. Purchaser agrees to carry all homeowner, liability and other necessary and required insurance. Town and Country y Fence's workers are fully covered by workers Compensation Insurance or other required insurance. All fence or product reamins the property of Town and Country Felice until paid for by Purchaser and Purchaser auuthorizes Town and County Fence to remove the sane and charge Purchaser for the fence or product and their removal if payment is not made per the temps ofthis Proposal. Purchaser agrees to pay 1.5%per mouth on all past due accounts. Any fence project that is considered custom or has special order materials is not returnable and therefore not finny refimdable. A miuinnnn of 25 restocking fee will apply with certain items being subject to higherrestock fees as established fronn time to time by Town and Country Felice. Unless objected by the Purchaser, Town and Country Felice shall place a lawn sign on the property for the duration of Town and Country y Fence's work. Acceptance of Proposal. The above prices, specifications, teens, and conditions are satisfactory and accepted by Purchaser. Town and Country Fence is authorized to do the work as specified and Purchaser agrees to make payment as outlined above. Date of Acceptance Jonathan Krause — Commercial Sales This Proposal may be withdrawn by Town & Country Fence if not accepted within 5 days. Purchaser Purchaser Name: By: Print Name Equal Opportunity Employer Quote Century Fence Company 14839 Lake Dr NE Forest Lake, MN 55025 Quote To: CITY OF HUTCHINSON 111 HASSAN ST SE HUTCHINSON, MN 55350 Project Location: Hutchinson Utilities 1100 Industrial Blvd SE Hutchinson, MN 55350 r_F Quote #: 37879 Quote Date: 8/13/2026 Autogate Option: Furnish and install 1- 6'+1' x 22' wide chain link 300 Autogate operator. Price includes the concrete pad, new latch post, dual height pedestal, safety loops, heat mat and free exit loop and 3-button station in building (All electrical and conduits by others) Materials and Labor: $50,790.00 (Delivery dates are currently 10 to 12 weeks) Slide Gate Option: Furnish and install 1-22' wide slide gate with LiftlVaster INSL24UL gate operator with dual height pedestal, safety loops, heat mat and free exit loop and 3-button station in building (All electrical and conduits by others). • 2 - Gate post: 4" O.D. Galvanized pipe - Concrete Set Materials and Labor: $29,385.00 Fence Repair and adjust Gate Remove and replace 5 line posts and adjust East gate so it doesn't drag along the ground and lines up. Materials and Labor: $1,835.00 OPTION: 1. Install a long range RFID reader ADD: $8,250.00 Notes: Excludes Excavation through rock, Excavation through frost, Private Utility Locate, Removal of spoils from post holes offsite, Survey of property for fence layout, Power and Electrical conduits. Buyer's Signature: Quote Valid For 15 days Date: Submitted by: 0M etk&m This quote when accepted in writing by purchaser and by Century Fence Company includes the terms and Ben Erickson conditions set forth on www✓ m,( ii - (: ,::ami which are incorporated by reference and becomes a contract Change between two parties. If the project is cancelled upon agreement and special materials were purchased, the Office: 651-464-7373 Acceptance: customer agrees to pay 100% of the material cost Cel1:612-454-9755 Terms of Payment: Net Cash upon receipt of invoice. Email:BErickson@centuryfence.com Page 1 of 1