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cp01-29-2009 cJOINT HUC / CITY MEETING • AGENDA JANUARY 29, 2009 4:00 P.M. EVENT CENTER 1. Electric Rate Comparison (handout provided) 2. Natural Gas Rate Comparison (handout provided) 3. Electric Reliability Indices (handout provided) 4. President Obama — New Energy for America (handout provided) 5. Strategic Plan • Strategic Plan Formally Updated / Approved in 2008 • Integrated Resource Plan — Electric (handout provided) • Time Diversity Model — Natural Gas (handout provided) • Rate Stability — Fuel /Power Cost Adjustment (handout provided) • 6. Strategic Planning — Year 2008 in Review • Software Billing Conversion • Implemented Health Savings Account • MMUA Health /Safety Program • New Website • Executed Supplier Agreements for Purchases with Various Vendors • Eliminated Power Stat Billing System • Position Descriptions, Behavioral Rules, Code of Conduct and Ethics Adopted by Hutchinson Utilities Commissioners for the Hutchinson Utilities Commissioners • AMI Study • New Inventory Building • Plant 1 Building • Manpower Study Completed 7. MMGA Pre -Pay Update 8. Electric Service Territory Update 9. Natural Gas Facility Extension Outside of City Limits • 10. Payment in Lieu of Taxes (PILOT) (handout provided) 11. Discussion of Joint Billing 0 • AGENDA ITEM 1 Electric Rate Comparison (handout provided) 11 COMPARISON OF MONTHLY RESIDENTIAL BILLS - 800 KWH $110 $100 $90 $60- $70- $6Q n $60° $40- $30 $20- $10- $0 Marshall Wilmer Alexandria Otter Tail Litchfield Hutchinson Glencoe Xcel Energy- McLeod St. Peter New Ulm Power - MN MN coopemuve 30% 20% 1 LU w 10% r z to 9 0 % mom d 40% Marshall Marshall Wilmer Alexandria Otter Tail Litchfield Hutchinson Glencoe Xcel Energy- McLeod St. Peter New Ulm Power - MN MN coopemuve 30% 20% LU w 10% r z to 9 0 % d 40% Marshall 1114!2009 WiOmar Alexandria Otter Tail Litchfield Hutchinson GEencoe Xcel Energy - McLeod SL Peter New Ulm Power - MN MN Cooperative Prepared by Misscuri River Energy Services COMPARISON OF MONTHLY RESIDENTIAL BILLS - $00 KWH ws 5 J O O 30% 20% rWn I0% t7 H uj 090 W t1 W 0 °h -20% -30% Litchfield Marshall Alexandria Willmar 011mr Tail Hutchinson Xcel Energy- McLeod Power - MN MN cooperative V3112006 — St Peter Glencoe New Ulm Prepared by Mleaaun River Em gy Samces Litchfield Marshall Alexandria Willmar Otter Tail Hutchinson Xcel Energy- MaLedd SL Pater Glencoe New Ulm Power -MN MN Cooperative 0 • AGENDA ITEM 2 Natural Gas Rate Comparison (handout provided) • . • • HUTCHINSON UTILITIES COMMISSION NATURAL GAS DIVISION CDMPARISON OF MONTHLY RESIDENTIAL BILLS 2008 RESIDENTIAL NATURAL GAS COST COMPARISON -2008- - - 2s.s', 30.0% 20. 25.0 ° Ja zi. 20.0%!0 A 15.0%- 1 0.0 5. © 0 0.0% HUTCHINSON NEW ULM OWATONNA AUSTIN CENTERPOINT UTILITIES PUBLIC PUBLIC UTILITIES ENERGY COMMISSION UTILITIES UTILITIES COMMISSION HUC RESIDENTIAL RATE COMPARISON 20108 250 150 �Q..l J F S Z � 100 Eel 50 2 a a = J a 6 Z J > t > L w m w w m m a m LL ¢ w w N 0 6 0 Z � HUTCHINSON UTILITIES COMMISSION -I NEW ULM PUBLIC UTILITIES COMMISSION - OWATONNA PUBLIC UTILITIES A AUSTIN UTILITIES - ? K - C ENTERP O INT ENER 0 L AGENDA ITEM 3 Electric Reliability Indices (handout provided) • 0 11 • 0 Supply to City 0 0 1 Overhead Equipment Failure 3 8 2 Underground Equipment Failure 6 9 3 Weather 0 1 4 Birds, Animals, Snakes, etc. 1 2 5 Trees 5 6 6 Foreign Interference 0 0 7 Human 5 9 8 Other 1 0 9 Unknown 1 0 10 vehicle 0 4 Total 22 39 66.19 Albert Lea 0.97 CAIDI (Long) (min) 11.82 46.17 SAIDI (Long) (min) 5.17 19.74 SAIFI(Long)(ints /tot cust) 0.44 0.43 2007 Investor Owned Proposed Reliability Goals Xcel Work Cent SAIFI SAIDI CAIDI Metro East 1.07 103.94 97.46 Metro Wes 1.3 144.11 110.85 Northwest 1.02 102.84 100.94 Southeast 0.95 95.6 101.22 Interstate Work Cent SAIFI SAIDI CAIDI Winnebagc 0.85 56.55 66.19 Albert Lea 0.97 77.39 80.18 Otter Tail Work Cent SAIFI SAIDI CAIDI Bemidji 1.25 48.35 38.26 Crookston 1.55 79.76 51.46 Fergus Fall 1.35 85.79 63.55 Morris 1.55 63.68 41.08 MN Power SAIFI SAIDI CAIDI 1.2 122.7 102.25 Outage Reasons 1126/2009 Number of Outages (by Cause 2007 2008 Increase 2005 2006 Supply to C4 0 0 0 % 0 0 Overhead Equipment Failure 8 3 -63 % 0 4 Underground Equipment Failure 9 6 -33 % 0 9 Weather 1 0 -1% 0 0 Birds, Animals, Snakes, etc. 21 1 -50% 0 0 Trees 61 5 -17% 0 2 Foreign Interference 0 0 0% 0 0 Duman 9 5 -44 % 0 5 Other 0 1 1% 0 0 Unknown 0 1 1%1 0 0 Vehicle 4 0 -4% 0 0 Outages By Cause 10 9 8 7 6 5 4 3 2 1 0 .§ Nziz 4 .\ 0 � ���` v � �� � cGO J c � ~r¢` 0 o ram cue '�` Jr a a a e, � 0�� sc Pc�� �o� J E 02 ■2008 0 2005 02006 APPENDIX - Definitions • Average Service Availability Index — ASAI is a measure of the average availability of the sub transmission and distribution systems to serve customers. It is the ratio of the total customer minutes that service was available to the total customer minutes demanded in a time period. It is normally expressed as a percentage. ASAI = Customer Hours Service Demand Customer Hours Service Availability System Aver we Interruption Frequency Index (Sustained Interruptions) — This is defined as the average number of times that a customer is interrupted during a specified time period It is determined by dividing the total number of customers interrupted in a time period by the average number of customers served. The resulting unit is Interruptions per customer ". SAIFI = Total Number of Customer Interruptions Total Number of Customers Served System Average Interruption Duration Index — This is defined as the average interruption duration for customers served during a specified time period. It is determined by summing the customer- minutes off for each interruption during a specified time period and dividing the sum by the average number of customers served during that period. The unit is minutes. This index enables the utility to report how many minutes customers would have been out of service if all customers were out at one time. SAIDI = Z,Cus I nterruption Durations • Total Number of Customers Served Customer Average Interruption Duration Index — This is defined as the average length of an interruption, weighted by the number of customers affected, for customers interrupted during a specific time period It is calculated by summing the customer minutes off during each interruption in the time period and dividing this Slim by the number of customers experiencing one or more sustained interruptions during the time period. The resulting unit is minutes. The index enables utilities to report the average duration of a customer outage for those customers affected. CAIDI = L Cust omer I nterruption D Total Number of Customer Interruptions is Page 10 of 11 Electric Distribution Circuit Length 2005 09ereead to Underground Electric convamion 2001 -200® 140 12C 100 So M0® NMddsaf UIIOBNNwsO EI9t9i0 COh0uC10!4 �m9e.9r oreme.d E1wm9sa�aud9rs 4C 2C a 2001 2902 2003 2CC4 2005 2009 2007 Moll Yew HUC converts 2 -3 miles 0£ovenc�ed Imes la undergamed Der year The 10181 canvemlen Isr0jecl is scheduled tae aomplelian In 2912 _1 4150/2900 1390() Mnm MRO 0�d aed Oser6rr11 M.ma.d Fe &, W81h Fet4er lesp6 IFS 1 2Ph In in 2Ph 3M I0h 2n in In in in FLI 95�e I 0 ON 5 646 316 1103 42&1 4601 1.23 11 13606 61117 2Wn 5.23 12 10902 10902 2 06 14 16976 35965 52941 1009 15 1]50 3502 43232 8.19 16 3}33 82550. 96203 1533 it 60540 713 36655 9=33 18.11 18 74342 1629 90391 175333 33.21 ISA 1391 551 1 INS 037 19 1 1 1 1 14709 30425 52380 9.41 19A 10201 1549 1549'! 797 92.57 1 1 35421 6.71 21 29035 29035 5.50 Z2 42013 82181 124394 23 56 B 16098 IMS 191 41 1547 1541 029 43 3d4 IN 0.07 Tend It 1328) 2123 16601 101 0 11571 0 0 5144 23.1399 2362 469212 MITI Taal mi 213 032 3.14 0.15 OAO 3.19 0.00 0.00 0.99 44d8 OAS 99.97 14312 T9W IUH 3685e 457% 6,98 T91JNRt1 719321 95.13% 336.34 Tn10 Tryrt.m .hne I I?-ID 09ereead to Underground Electric convamion 2001 -200® 140 12C 100 So M0® NMddsaf UIIOBNNwsO EI9t9i0 COh0uC10!4 �m9e.9r oreme.d E1wm9sa�aud9rs 4C 2C a 2001 2902 2003 2CC4 2005 2009 2007 Moll Yew HUC converts 2 -3 miles 0£ovenc�ed Imes la undergamed Der year The 10181 canvemlen Isr0jecl is scheduled tae aomplelian In 2912 _1 to underground 1 area Key 3 phase URD - - - - - -- I phase URD -- - -- 350 MOM h_ Secondary Pedistal Pad mount - Transformer Overhead to underground Conversion area Aoarox. 30,000 Borfno Feet R 0 • AGENDA ITEM 4 President Obama — New Energy for America (handout provided) • OBAMA'O$ W W" BARAGKOSAMA. CUM BARACK OBAMA: NEW ENERGY FOR AMERICA America has always risen to great challenges, and our dependence on oil is one of the greatest we have ever faced. It's a threat to our national security, our planet and our economy. For decades, Washington has failed to solve this problem because of partisanship, the undue influence of special interests, and politicians who would rather propose gimmicks to get them through an election instead of long -term solutions that will get America closer to energy independence. Our country cannot afford politics as usual - not at a moment when the energy challenge we face is so great and the consequences of inaction are so dangerous. We must act quickly and we must act boldly to transform our entire economy - from our cars and our fuels to our factories and our buildings. Achieving this goal will not be easy. Energy independence will require far more than the same Washington gimmicks and continued dependence on costly and finite resources. It will require a sustained and shared effort by our government, our businesses, and the American people. But America has overcome great challenges before. With clarity of direction and leadership, there is no question that we possess the insight, resources, courage and the determination to build a new economy that is • powered by clean and secure energy. Barack Obama has a comprehensive energy plan that provides immediate relief to struggling families. it also summons the nation to face one of the great challenges of our time: confronting our dependence on foreign oil, addressing the moral, economic and environmental challenge of global climate change, and building a clean energy future that benefits all Americans. Obama's comprehensive New Energy for America plan will: • Provide short -term relief to American families facing pain at the pump • Help create five million new jobs by strategically investing $150 billion over the next ten years to catalyze private efforts to build a clean energy future. • Within 10 years save more oil than we currently import from the Middle East and Venezuela combined • Put 1 million Plug -In Hybrid cars - cars that can get up to 150 miles per gallon - on the road by 2015, cars that we will work to make sure are built here in America • Ensure 10 percent of our electricity comes from renewable sources by 2012, and 25 percent by 2025 • Implement an economy -wide cap- and -trade program to reduce greenhouse gas emissions 80 percent by 2050 • Paid for by Obama for America • SHORT -TERM SOLUTIONS: IMMEDIATE RELIEF FROM PAIN AT THE PUMP Barack Obama recognizes that skyrocketing energy costs are taking a heavy toll on American families. Tc address the squeeze on Americans, Obama is calling for an: emergency energy rebate; an aggressive plan to crack down on speculators; and a swap of oil from the Strategic Petroleum Reserve to help provide immediate relief from soaring energy prices. Immediately Provide Emergency Energy Rebate. Barack Obama will require oil companies to take a reasonable share of their record - breaking windfall profits and use it to provide direct relief worth $500 for an individual and $1,000 for a married couple. The relief would be delivered as quickly as possible to help families cope with the rising price of gasoline, food and other necessities. The rebates would be fully paid for with five years of a windfall profits tax on record oil company profits. This relief would be a down payment on Obama's long -term plan to provide middle -class families with at least $1,000 per year in permanent tax relief. The Obama energy rebates will: offset the entire increase in gas prices for a working family over the next four months; or pay for the entire increase in winter heating bills for a typical family in a cold- weather state. In addition, Obama has proposed setting aside a portion of a second round of fiscal stimulus to ensure sufficient funding for home heating and weatherization assistance as we move into the fall and winter months • Crack Down on Excessive Energy Speculation. Current loopholes in Commodity Futures Trading Commission regulations have contributed to the skyrocketing price of oil on world markets. Barack Obama will enact simple legislation to close these loopholes and increase transparency on the speculative market will help bring oil prices down and prevent traders from unfairly lining their pockets at the expense of the American people. • • Swap Light and Heavy Crude, Release Oil/rom Strategic Petroleum Reserve to Cut Prices. The United States' Strategic Petroleum Reserve (SPR) is there for a purpose: to help Americans in times of crisis. Barack Obama believes the doubling of oil prices in the past year is a crisis for millions of Americans and the transfer of wealth to oil producing countries, many of them hostile to our interests, is a threat to our national security. With the goal of bringing down prices at the pump, he supports releasing light oil from the SPR now and replacing it later with heavier crude more suited to our long -term needs. MID- TO LONG- TERM SOLUTIONS. NEW ENF.RGYFORAMERI .q Our nation is confronted by two major energy challenges -our dependence on foreign oil and global climate change - both of which stem from our current dependence on fossil fuels for energy. Barack Obama believes we have a moral, environmental, economic, and security imperative to address our dependence on foreign oil and tackle climate change in a serious, sustainable manner. Tackle Climate Chanee As a result of climate change, the polar ice caps are shrinking causing sea levels to rise; extreme weather is wreaking havoc across the globe; droughts are becoming more severe, tropical diseases are migrating north and numerous species are being threatened with extinction. • Implement Cap and Trade Program to Reduce Greenhouse Gas Emissions. Barack Obama supports implementation of an economy -wide cap- and -trade system to reduce carbon emissions by the amount scientists say is necessary: 80 percent below 1990 levels by 2050. This market mechanism has worked before and will give all American consumers and businesses the • incentives to use their ingenuity to develop economically effective solutions to climate change. Paid for by Obama for America Obama's cap- and -trade policy will require all pollution credits to be auctioned. A 100 percent • auction ensures that all industries pay for every ton of emissions they release, rather than giving these valuable emission rights away to companies on the basis of their past pollution. A small portion of the receipts generated by auctioning allowances ($15 billion per year) will be used to support the development of clean energy, invest in energy efficiency improvements, and help develop the next generation of biofuels and clean energy vehicles - measures that will help the economy and help meet the emissions reduction targets. All remaining receipts will be used for rebates and other transition relief to ensure that families and communities are not adversely impacted by the transition to a new energy, low carbon economy. Make the U.S. a Leader on Climate Change. Barack Obama understands that the only real solution to climate change requires all major emitting nations to join in the solution. While it is time for America to lead, developing nations like China and Brazil must not be far behind in making their own binding commitments. To develop an effective and equitable global program, Obama will re- engage with the U.N. Framework Convention on Climate Change (UNFCC) - the main international forum dedicated to addressing the climate problem. He will also invigorate the Major Economies (MEM) effort and bring all the major emitting nations together to develop effective emissions reduction efforts. Invest On Our Secure En= Future and Create 5 Mfllion New lob Barack Obama will use a portion of the revenue generated from the cap -and -trade permit auction to make investments that will reduce our dependence on foreign oil and accelerate deployment of low - carbon technologies. The investments will focus on three critical areas: 1) Basic Research; 2) Technology Demonstration and 3) Aggressive Commercial Deployment and Clean Market Creation. • Invest In A Clean Energy Economy and Help Create 5 Million New Greenjobs. Obama will strategically invest $150 billion over 10 years to accelerate the commercialization of plug -in hybrids, promote development of commercial scale renewable energy, encourage energy efficiency, invest in low emissions coal plants, advance the next generation of biofuels and fuel infrastructure, and begin transition to a new digital electricity grid. The plan will also invest in America's highly - skilled manufacturing workforce and manufacturing centers to ensure that American workers have the skills and tools they need to pioneer the green technologies that will be in high demand throughout the world. All together these investments will help the private sector create 5 million new green jobs, good jobs that cannot be outsourced. Create a "Green Vet lnitiative'. The renewable energy economy is exploding in the United States. In terms of venture capital alone, private investment in the sector topped $2.6 billion dollars in 2007. At the same time, more than 837,000 troops who served in Iraq or Afghanistan are now veterans. As president, Barack Obama will ensure that more of our veterans can enter the new energy economy. He will create a new "Green Vet Initiative' that will have two missions: first it will offer counseling and job placement to help veterans gain the skills to enter this rapidly growing field; second, it will work with industry partners to create career pathways and educational programs. • Convert our Manufacturing Centers into Clean Technology Leaders. America boasts the highest - skilled manufacturing workforce in the world and advanced manufacturing facilities that have powered economic growth in America for decades. Barack Obama believes that America companies and workers should build the high- demand technologies of the future, and he will help nurture America's success in clean technology manufacturing by establishing a federal investment • program to help manufacturing centers modernize and help Americans learn new skills to Paid for by Obama for America produce green products. This federal grant program will allocate money to the states to identify • and support local manufacturers with the most compelling plans for modernizing existing or closed manufacturing facilities to produce new advanced clean technologies. This investment will help provide the critical up -front capital needed by small and mid -size manufacturers to produce these innovative new technologies. Along with an increased federal investment in the research, development and deployment of advanced technologies, this $1 billion per year investment will help spur sustainable economic growth in communities across the country. Create Newlab Training Programsfor Clean Technologies. The Obama plan will increase funding for federal workforce training programs and direct these programs to incorporate green technologies training, such as advanced manufacturing and weatherization training, into their efforts to help Americans find and retain stable, high - paying jobs. Obama will also create an energy- focused youth jobs program to invest in disconnected and disadvantaged youth. This program will provide youth participants with energy efficiency and environmental service opportunities to improve the energy efficiency of homes and buildings in their communities, while also providing them with practical skills and experience in important career fields of expected high - growth employment. Participants will not only be able to use their training to find new jobs, but also build skills that will help them move up the career ladder over time. Make our Cars. Tracks and S [V's Fuel Efflcien Last year, oil provided more than 96 percent of the energy in our vehicles. It is an economic, national security and environmental imperative that this near -total dependence come to an end. To achieve this goal, Obama will implement a strategy that will - within 10 years - allow us to reduce our consumption of oil by more than we currently import from the Middle East and Hugo Chavez's Venezuela combined, In order to do that, he will: . • Increase Fuel Economy Standards. Obama will increase fuel economy standards 4 percent per each year while protecting the financial future of domestic automakers. The plan, which will save nearly a half trillion gallons of gasoline and 6 billion metric tons of greenhouse gases, will establish concrete targets for annual fuel efficiency increases while giving industry the flexibility to meet those targets. Invest in Developing Advanced Vehicles and Put 1 Million Plug -in Electric Vehicles on the Road by 2015. As a U.S. senator, Barack Obama has led efforts to jumpstart federal investment in advanced vehicles, including combined plug -in hybrid /flexible fuel vehicles, which can get over 150 miles per gallon of gas As president, Obama will continue this leadership by investing in advanced vehicle technology with a specific focus on R &D in advanced battery technology. The increased federal funding will leverage private sector funds and support our domestic automakers to bring plug -in hybrids and other advanced vehicles to American consumers. Obama will also provide a $7,000 tax credit for the purchase of advanced technology vehicles as well as conversion tax credits. And to help create a market and show government leadership in purchasing highly efficient cars, an Obama administration will commit to: • Within one year of becoming President, the entire White House fleet will be converted to plug -ins as security permits; and • Half of all cars purchased by the federal government will be plug -in hybrids or all- electric by 2012 • Partner with DomesticAutomakers. Obama will also provide $4 billion retooling tax credits and loan guarantees for domestic auto plants and parts manufacturers, so that the new fuel - efficient • cars can be built in the U.S. by American workers rather than overseas. This measure will Paid for by Obama for America strengthen the U.S. manufacturing sector and help ensure that American workers will build the • high- demand cars of the future. Mandate All New Vehicles are Flexible Fuel Vehicles. Sustainably- produced biofuels can create jobs, protect the environment and help end oil addiction - but only if Americans drive cars that will take such fuels. Obama will work with Congress and auto companies to ensure that all new vehicles have FFV capability - the capability by the end of his first term in office. Develop the Next Generation of Sustainable Biofuels and Infrastructure. Advances in biofuels, including cellulosic ethanol, biobutenol and other new technologies that produce synthetic petroleum from sustainable feedstocks offer tremendous potential to break our addiction to oil. Barack Obama will work to ensure that these clean alternative fuels are developed and incorporated into our national supply as soon as possible. He will require at least 60 billion gallons of advanced biofuels by 2030. Obama will invest federal resources, including tax incentives and government contracts into developing the most promising technologies and building the infrastructure to support them. Establish a National Low Carbon Fuel Standard. Barack Obama will establish a National Low Carbon Fuel Standard (LCFS) to speed the introduction of low - carbon non - petroleum fuels. The standard requires fuels suppliers in 2010 to begin to reduce the carbon of their fuel by 5 percent within 5 years and 10 percent within 10 years. The Obama plan will incentivize increased private sector investment in advanced low- carbon fuels and has a sustainability provision to ensure that increased biofuels production does not come at the expense of environmental conservation. The LCFS is an important mechanism in ensuring that our efforts to reduce our oil dependence also reduce carbon emissions. • Promote the Supply of Domestic Enerev With 3 percent of the world's oil reserves, the U.S. cannot drill our way to energy security. But U.S. oil and gas production plays an important role in our domestic economy and remains critical to prevent global energy prices from climbing even higher. There are several key opportunities to support increased U.S. production of oil and gas that do not require opening up currently protected areas. A "Use It or Lose It "Approach to Existing Leases. Oil companies have access to 68 million acres of land, over 40 million offshore, which they are not drilling on. Drilling in open areas could significantly increase domestic oil and gas production. Obama will require oil companies to diligently develop these leases or turn them over so that another company can develop them. • Promote the Responsible Domestic Production of Oil and Natural Gas. An Obama administration will set up a process for early identification of any infrastructure obstacles /shortages or possible federal permitting process delays to drilling in: o Bakken Shale in Montana and North Dakota which could have as much as 4 billion recoverable barrels of oil according to the U.S. Geological Survey. o Unconventional natural gas supplies in the Barnett Shale formation in Texas and the Fayetteville Shale in Arkansas. o National Petroleum Reserve- Alaska (NPR -A) which comprises 23.5 million acres of federal land set aside by President Harding to secure the nation's petroleum reserves for national • security purposes. Paid for by Obama for America • • Prioritize the Construction of theAlaska Natural Gas Pipeline. As president, Obama will work with the Canadian government, state of Alaska, oil and gas producers, and other stakeholders to facilitate construction of the pipeline. While this pipeline was proposed in 1976, and Congress authorized up to $18 billion in loan guarantees for this project in 2004, there has been no progress in building this critical energy infrastructure under the Bush Administration. The planned pipeline would have a daily capacity of 4 billion cubic feet of natural gas, or almost 7 percent of current U.S. consumption. Not only is this pipeline critical to our energy security, it will create thousands of new jobs. Getting Morefrom our Existing Oil Fields. Nationally, experts believe that up to 85 billion barrels of technically recoverable oil remains stranded in existing fields. Enhanced oil recovery (EOR) using carbon dioxide offers an immediate- to medium -term opportunity to produce more oil from existing fields. And in the FOR process, large quantities of CO2 can be sequestered underground, reducing global warming pollution. Under an Obama Administration, we will pass a carbon cap - and- trade -bill, which will incentivize emitters to send their CO2 to old oil fields for EOR, thereby providing economic benefits while also stimulating additional domestic oil and gas production. To speed that process, we will map all stationary CO2 sources and develop a database to help industry calculate the most cost - effective oil field destination for each source's CO2. Diversify Our Enerav Sources There are no silver bullet solutions to our energy crises. Our economy, security and environment will be best served through a sustained effort to diversify our energy sources. Barack Obama will: • Require 10 Percent of Electricity to Come from Renewable Sources by 2012. Barack Obama will establish a 10 percent federal Renewable Portfolio Standard (RPS) to require that 10 percent of electricity consumed in the U.S. is derived from clean, sustainable energy sources, like solar, wind and geothermal by 2012. Many states are already well on their way to achieving statewide goals and it's time for the federal government to provide leadership for the entire country to support these new industries. This national requirement will spur significant private sector investment in renewable sources of energy and create thousands of new American jobs, especially in rural areas. And Obama will also extend the federal Production Tax Credit (PTC) for 5 years to encourage the production of renewable energy. Develop and Deploy Clean Coal Technology. Carbon capture and storage technologies hold enormous potential to reduce our greenhouse gas emissions as we power our economy with domestically produced and secure energy. As a U.S. Senator, Obama has worked tirelessly to ensure that clean coal technology becomes commercialized. An Obama administration will provide incentives to accelerate private sector investment in commercial scale zero - carbon coal facilities. In order to maximize the speed with which we advance this critical technology, Obama will instruct DOE to enter into public private partnerships to develop 5 "first -of -a -kind" commercial scale coal -fired plants with carbon capture and sequestration. Safe and Secure Nuclear Energy. Nuclear power represents more than 70 percent of our non - carbon generated electricity. It is unlikely that we can meet our aggressive climate goals if we eliminate nuclear power as an option. However, before an expansion of nuclear power is considered, key issues must be addressed including: security of nuclear fuel and waste, waste storage, and proliferation. Barack Obama introduced legislation in the U.S. Senate to establish guidelines for tracking, controlling and accounting for spent fuel at nuclear power plants. To • Paid for by Obama for America prevent international nuclear material from falling into terrorist hands abroad, Obama worked • closely with Sen. Dick Lugar (R -IN) to strengthen international efforts to identify and stop the smuggling of weapons of mass destruction. As president, Obama will make safeguarding nuclear material both abroad and in the U.S. a top anti - terrorism priority. In terms of waste storage, Obama does not believe that Yucca Mountain is a suitable site. He will lead federal efforts to look for safe, long -term disposal solutions based on objective, scientific analysis. In the meantime, Obama will develop requirements to ensure that the waste stored at current reactor sites is contained using the most advanced dry-cask storage technology available. Commitment to Efficiency to Reduce Energy Use and Lower Costs According to the United Nations, America is only the 22nd most energy efficient country among the major economies in the world, which means we spend more on energy than we need to because our lifestyle and our built environment are wasting too much excess energy. Since 1973, the average amount of electricity each of us uses has tripled. We can do better. An Obama administration will strive to make America the most energy efficient country in the world. • Deploy the Cheapest, Cleanest;, Fastest EnergySource -- Energy Efficiency. The Department of Energy (DOE) projects that demand for electricity will increase by 1.1 percent per year over the next few decades. Cutting this demand growth through efficiency is both possible and economically sound. Barack Obama will set an aggressive energy efficiency goal —to reduce electricity demand 15 percent from DOE's projected levels by 2020. Implementing this program will save consumers a total of $130 billion, reduce carbon dioxide emissions by more than 5 billion tons through 2030, and create jobs. A portion of this goal would be met by setting annual demand reduction targets that utilities would need to meet. The rest would come from more stringent building and appliance standards. • • Set National Building Efficiency Goals. Obama will establish a goal of making all new buildings carbon neutral, or produce zero emissions, by 2030. He'll also establish a national goal of improving new building efficiency by 50 percent and existing building efficiency by 25 percent over the next decade to help us meet the 2030 goal. Overhaul Federal Efficlency Standards. The current Department of Energy has missed 34 deadlines for setting updated appliance efficiency standards, which has cost American consumers millions of dollars in unrealized energy savings. Obama will overhaul this process for appliances and provide more resources to his Department of Energy so it implements regular updates for efficiency standards. He will also work with Congress to ensure that it continues to play a key role in improving our national efficiency codes. Reduce Federal Energy Consumption. Currently, the federal government is the world's largest single consumer of energy in the world, spending approximately $14.5 billion on energy consumption in FY 2008. Barack Obama believes in the importance of leading by example. He will make the federal government a leader in the green building market, achieving a 40 percent increase in efficiency in all new federal buildings within five years and ensuring that all new federal buildings are zero - emissions by 2025. He will invest in cost - effective retrofits to achieve a 25 percent increase in efficiency of existing federal buildings within 5 years. The Obama plan will put forward the resources necessary to achieve a 15 percent reduction in federal energy consumption by 2015. This will result in savings for the government • Flip Incentives to Energy Utilities An Obama administration will "flip" incentives to utility • companies by: requiring states to conduct proceedings to implement incentive changes; and Paid for by Obama for America offering them targeted technical assistance. These measures will benefit utilities for improving • energy efficiency, rather than just from supporting higher energy consumption. This "regulatory equity' starts with the decoupling of profits from increased energy usage, which will incentivize utilities to partner with consumers and the federal and state governments to reduce monthly energy bills for families and businesses. The federal government under an Obama administration will play an important and positive role in flipping the profit model for the utility sector so that shareholder profit is based on reliability and performance as opposed to total production. Invest in a Smart Grid. Achieving these aggressive energy efficiency goals will require significant innovation in the way we transmit electricity and monitor its use. Obama will pursue a major investment in our national utility grid using smart metering, distributed storage and other advanced technologies to accommodate 21st century energy requirements: greatly improved electric grid reliability and security, a tremendous increase in renewable generation and greater customer choice and energy affordability. Obama will establish a Grid Modernization Commission to facilitate adoption of Smart Grid practices across the nation's electricity grid to the point of general adoption and ongoing market support in the U.S. electric sector. He will instruct the Secretary of Energy to: (1) establish a Smart Grid Investment Matching Grant Program to provide reimbursement of one - fourth of qualifying Smart Grid investments; (2) conduct programs to deploy advanced techniques for managing peak load reductions and energy efficiency savings on customer premises from smart metering, demand response, distributed generation and electricity storage systems; and (3) establish demonstration projects specifically focused on advanced technologies for power grid sensing, communications, analysis, and power flow control, including the integration of demand -side resources into grid management. • Weatherize One Million Homes Annually. In the struggle with higher energy prices low income • families are suffering the most and receiving the least attention. Across the nation, poor families this winter will increasingly face the choice between heating and eating as prices for natural gas, heating oil, propane and electricity skyrocket. To address the immediate challenge this winter, we must fully fund LIHEAP and ensure that everyone who needs it has access to heating assistance. Over the longer -term, a significant part of the answer for low income families is home weatherization. By upgrading a home's furnace, sealing leaky ducts, fixing windows, and adding insulation we can cut energy bills by 20 - 40 percent and the substantial savings accrue with summer air conditioning as well as winter heating. And by adding energy efficient appliances and lighting the savings are even greater. While the nation has weatherized about 5.5 million low - income homes since 1976, more than 28 million remain eligible. Obama will make a national commitment to weatherize at least one million low - income homes each year for the next decade, which can reduce energy usage across the economy and help moderate energy prices for all. Build More Livable and Sustainable Communitfes. Over the longterm, we know that the amount of fuel we will use is directly related to our land use decisions and development patterns. For the last 100 years, our communities have been organized around the principle of cheap gasoline. Barack Obama believes that we must devote substantial resources to repairing our roads and bridges. He also believes that we must devote significantly more attention to investments that will make it easier for us to walk, bicycle and access other transportation alternatives. Obama is committed to reforming the federal transportation funding and leveling employer incentives for driving and public transit. • Paid for by Obama for America E • AGENDA ITEM 5 • Strategic Plan Formally Updated / Approved in 2008 • Integrated Resource Plan — Electric (handout provided) • Time Diversity Model — Natural Gas (handout provided) • Rate Stability — Fuel /Power Cost Adjustment(nandout provided) 11 • Mission The Hutchinson Utilities Commission will provide economical, reliable electric and natural gas service within our service territory and the Midwest, while contributing to the economic vitality of the City of Hutchinson and our customers. Values We value the concepts of local control, innovativeness, flexibility in our decision making, and conduct our business in an environmentally responsible manner. We value our community our customers and our employees. We value an employee friendly workplace, provide skills training, and provide a safe work environment. Vision Statements As we move into the next decade, Hutchinson Utilities Commission will continue to be a locally owned public utility that anticipates and meets the community's utility needs at the lowest achievable rates. Hutchinson Utilities Commission, as a publicly owned enterprise, is vital to the community to maintain and enhance the quality of life, the economy, and the environment. 2. As a publicly owned enterprise in a competitive environment, the Utilities is a role model for the public sector with its streamlined form of governance. While the city maintains ultimate control, the utilities and its board have autonomy for the critical operation and policy decisions that are necessary for competitive • success. Hutchinson Utilities Commission has earned this freedom to pursue courses of action as required within broad policy guidelines. 3. Hutchinson Utilities Commission recognizes that it is a municipally owned business enterprise, as such it will continue to look for opportunities to grow as a business. As an enterprise fund of the City of Hutchinson, the Hutchinson Utilities Commission provides direct and indirect benefits to the city and its residents. We contribute a fair return on investment to the city, which in turn help to reduce taxes in the community. Our governmental and street lighting services are models for local governments across the northern tier of the country. We work closely with city Staff to facilitate planned growth in the community and partner with the city wherever possible to share services, thus reducing costs and increasing efficiency for both entities and our customers. 4. Hutchinson Utilities commission is environmentally conscious and responsible. While continuing to explore its options as it pertains to power and natural gas supply, we actively look for opportunities to expand our use of alternative energies and incorporate its use in our energy portfolio through direct involvement, partnerships, and secondary participation. Recognizing that conservation is an easy, cost effective means to reduce energy consumption, we encourage conservation in our practices, as well as those of our customers. • • 5. Our industrial and commercial customers view us as partners in their businesses. We anticipate their requirements, we listen to their needs, we respond with flexible services delivered with superior quality, and we work with them to prevent situations that would disrupt service. All commercial and industrial customers recognize the economic and business advantages that Hutchinson Utilities Commission provides. When new businesses consider locating in our area, our commercial and industrial customers point to Hutchinson Utilities Commission as one of the community's primary advantages. 6. Our residential customers view Hutchinson Utilities Commission as the benchmark government organization. We are publicly owned and locally controlled; yet we provide service with productivity and quality levels that exceed those of most private sector organizations. We break the stereotype of rigid and inefficient government organizations. We are innovative and flexible in meeting citizen needs; we care about the community and its environment. We are widely respected for our customer focus, technical expertise, and innovative service development and delivery. Our residential customers are quite aware of the fact that our lower cost service results in more disposable income which helps drive the local economy. 7. As an organization we are able to achieve extraordinary levels of performance because we function as a team. We understand that the only way we can fulfill our mission and stay ahead of the increasing levels of competition is to take • advantage of the synergy we can achieve by working together. The people of Hutchinson Utilities Commission reflect the diversity of our customer base, which we see as a strength because that diversity allows us to better understand our customers' requirements. We practice mutual respect daily and have developed effective communication mechanisms that allow personnel to confidently express their concerns regarding problems or barriers that interfere with their ability to deliver outstanding service. These concerns are listened to carefully so issues can be resolved at the level that they occur. 8. We recognize that our competitive position is maintained only through the knowledge and expertise of our people. The people of Hutchinson Utilities Commission are our competitive advantage. Therefore, investments in personnel development are essential to our continued service, innovation, productivity improvements, and customer satisfaction. 9. The people of HUC act in a professional and courteous manner and treat all people, as they would want to be treated. The people of Hutchinson Utilities Commission are ambassadors of the Utilities, and the City of Hutchinson, and are aware of the image they portray to the public. n U • Integrated Resource Plan Summary Table Energy Conservation Requirement (2007 Le islg ationl— conservation requirements are 1.5 % of retail sales. Annual retail sales are approximately 320,000,000 KWHR's 1.5 % of 320,000,000 KWHR's = 4,800,000 KWHR's 520 KW x 24 hrs per day x 365 days per year = 4,555,200 KWHR's The above requirements are programmed into HUC's CIP program using both direct and also indirect energy savings. Base load energy requirements are 35 MW • Base load energy sources are Coal, Nuclear, or Large Hydro. For HUC circumstances, the only viable alternative for acquiring base load is through Coal. This will be done through a Joint Action Agency, like MRES, since HUC does not have the financial resources, and /or human resources for such a plant. Existing Natural Gas Generation Existing Natural Gas Generation is approximately 105 MW. This will be used primarily for peaking purposes, and also for hedging the price of natural gas conversion to electricity with the MISO market. Renewable Energy Assuming Minnesota allows the construction of a coal base power plant, and also assuming HUC can remain successful in keeping its partnership relationship with its Joint Action Agency (MRES), then twenty five percent of its energy resources will need to come from renewable resources. The way the law is written is that an individual municipal is not required to construct renewable energy resources, however, the Joint Action providing energy to the municipal utility is required to have twenty five percent coming from renewable energy resources. Using wind as the benchmark, then approximately 23 MW of nameplate wind would have to be constructed. • The following pages illustrate an implementation schedule to comply with the 25 x 25 law. Cooperative and Municipal Electric Utility 2008 CIP Report Overview GENERAL UTILITY INFORMATION ID X Uxxxxx 1. Utility Information 2. Contact Informal Utility Name Hutchinson Utilities Commission Contact Name Jon Guthmiller Sheet Address 225 Michigan St Se Contact Title''.Ener Conservation Administrator Street Address Telephone (320 234A506 City Hutchinson Fax 1 1(320 ) 2347743 State Minnesota Email AddressI _u €hmolller ci.hutchinson.mn. us Zip Cade 55350 3. Utility Type Indicate utility type by entering an "X" below. Munici al x Cooperative C Del Type Indicate data type by entering an "X" below. Public Information x Trade secret 6, Cuak#ner`P _ ..- _ Please complete chart below. Calegoryl # of Customers kWh sales Residential 6,015 53,901,739 Commercial 933 98,399.129 Industrial 2 M 000 Farm Cori Residential Air Conditioning Other x Cori Total 6,960 316,646,868 CIP SPENDING REPORT 6. 2007 Gross Operating Revenue -. Enter GOR for 2007 $27,843 523 7.2008 -2009 Low - income Spendin R ulmment 0 1 ° /G of 2007 GOR from Residential Customers $5.235 B. 2010 Low-income Spending Requirement estimated L_ 0 _ 2°4 of 20 GO R from Residential Cus tomers $11 370 9. _2 Annual CIP Minimum ndl q UInwwnt 10. 20081200912610 Minimum Conservation Expenditures enditures 1 5".4. or 2007 G6n $417 6531 1 50,rr. rl',hn',rvurn 5pentlm� l ,e- ,ruru�_ 5208,$26 11. 2066 CIP Actual Total Expenditures $256000 Conaervatiw Expenditures $164,000 I Savings (11 1,264 12. 2007 CIP Actual Total Expenditures $374,809 Conservation Expenditures $292,409 Savings kWH 9,843,285 13, 2008 CIP Plan Total Expenditures $419,766 C"" All Ex enditures $335,416 Savings fk 10,220,965 15. 2010 CIP Plan Total Expenditures $415,642 Conservation Ezpendltures $329, 142 Savings kWH 1 5,720,965 14. 2009 CIP Plan Total Ex enditures $417 653 Conservation E endfiures $330,153 Savings kWH 5,720,965 18. 2010 Energy-Savings Goal Estimated avera a sales 2005 -2007 l 4,957,387 Ener -savors oal(1, 5 of aaera esaEes) 74.361 of conservation Projects 11 Conservation Project Name Status indicate wi h "X"° het 2 w New Existin Consl Energy Star Appliance Program x Cons2 CFL Program x Cori Residential Air Conditioning x Cori Windows and Doors (Energy Star +Insulation x cons5 Commercial Lighting x Cons6 lndustrlalUpgrade Program x _ Cons7 Tres Power Program x Cons8 Line loss Evaluation x Cons9 Now Transformer Efficiency Savincls x coral Plant #1 Lighting Retrofit _ x Corsi 1 Plant # 2, Unit # 1 Cenlrifu al Chiller Protect x Consl2 Cons13 Cons14 Corsi5 Municipal Gas Utility 2008 CIP Report Overview GENERAL UTILITY INFORMATION 1D X UXXXXX tATMy Nemwe Htfthl eson UbVies Commiss on Street Address 225 Michigan St Se Street Address City Hutchinson State Minnesota Zi p Code 553517 2. Contact Irdorimadort Contact Name Contact Tdle Telephone Fa: Email Address Jon Gulhrmaer Ener Cons ervation Admintstralor 329 234 -9506 (320 234 -T7a3 ' uthmiller ca hutchinson.mn- us 3,. Ut6gy Type Indicate utility type by entering an' "X" WOW Mumcipall X Coope rative 5. Customer Profile Please complete chart below. Category 0 O CnStOmP.r`s MCF sales Residential 4,719 442,775 _ Commercial 513 388,222 Industrial 3 768,433 Fame Ccns3 Rebalancing HVAC System Other Cons4 Total 5,235 1,600.430 CIP SPENDING REPORT ll tM1aa7GOR $69.204 8.1046 CIP ACWW Total Ex end itures y6 0.u77 Saving IMCF7 922 4 -- _ Inundate data type b y entering an' "X" below lawtiliclitf6i x Trade secret 6. 2447 Gross OperatIng Revenue 43 Enter GOR tar 2007 $13.840,672 7, 2468 Low- trteame Spendina Requirement 0.2 °.'9 of 2007 GOR from Res idential Customers 58,545 10.2067 GIP AeLLwl _ Total Expenditures] 573.487 -- Savings (MCF) 5,872] 111.2008 CIP Plan Total Expenditures 564,172 Savings tMGFy 1.072 117 .0 of Conservation Projects 4 Conservation Project Name Status indicate with"X" below New Existin _ ciansl _ Residential furnace_ and demand water heaters x Cons2 Low Income Weatherizations Pro rams x Ccns3 Rebalancing HVAC System x Cons4 Plant #1, Engine s4 Rebuild x Cones Cons6 Cons7 Coras8 Consil Other Options GE ROh 1. Revisit site selection process a) Goal of finding a site with better wind resource and /or better proximity to interconnect point b) Geronimo has begun this process with internal GIS staff c) Reconsider need for expandability 2. Have Geronimo to develop a local site as a third party a) Geronimo takes on the burden of development b) HUC will have unique ability to contract for power or purchase the project in the future given its proximity and transmission ownership 3. Buy wind energy from a different geography via an off -take agreement with a third party developer a) Brings access to better wind resource b) Could yield cheaper power than local project 4. Compare results of this study to alternative forms of generation a) Other renewable opportunities such as biomass may be attractive b) May utilize some of the existing HUC infrastructure Confidential Presentation to HUC 15 s9aean calr„rannre Ll�ao Gala WO. kVi Un$CO61 Tm ,il ,eiN 674.1W 3 6,009.88)]8 8.92 S pd Martel N. (Ya 387,112 S ? 939.1" 399 Togs 1,M1612 3 8,949A6861 a" FCAC C9 I9 n Tinlno lOodel 5 1.a1kI LorYad SootAMMtl Auurrcd r jm Mosel codradrn urR mms 51,532646,33 CF ! uev9b Futuet GOnhatl Pu Martel Prices Gm Ca91 1 3 1] 86177031 17 8538 $ q Z a F. b Ds Jam09 12056 $93250 $90000 $8.140 $8159W 582900 $96400 56.9200 $920!10 $a 7900 Fe 11200 S9.82W 59000 w3400 58.3900 592900 $96400 $9.5200 49200 58.7900 Mar09 10,111 $103250 $9.0600 58.140 58.5900 31029W $98400 89-82W 59,2000 597900 A149 5.833 $98250 $9.0 0 $8.14W $85900 W29W $9.6400 $96200 592000 $8.1900 May419 3422 59.32M $9.0W0 $8.1400 58.5900 88.2900 $SUM $9.8200 $920m $8.1000 Jun -09 2411 $88250 89.0000 $0,1400 $8.5900 $7.79M 39.6400 $9.6200 $92000 $817000 M09 2178 $8.82% $9.0500 $11400 885500 00.7900 39.64M 59.8200 392000 $51 %0 Au9-09 2118 $8.82M $9.0000 $5.1400 $8.5900 $7.7900 $9,64M 5918200 $9.20m S9]900 6BP 2.333 $8.82M $90000 58.1400 $65900 $77900 $9640 S9.62M $9.20M $8.7000 OF 109 4,822 $8,62% somO $6.1400 585900 57.79M $98406 $9.8200 392000 $87900 N0vA9 77W $7.9000 $851W $96W0 59.6200 MMO $879M 9 7 7 Oec4H 10.656 37.a m 88,S1W 5g.64M 598200 MM $a 7900 9 7 7 rMM "EMI connae- mNl'be Wlume9 I 2 3 4 q 6 9 Jamp9 121068 12.58 12.056 12,0% 12.% 12,058 12,056 12.056 12.056 Fe0.09 11,2W 112M 11,200 11200 112M 11,20 11,200 11,200 11000 W 14 9 10,111 16,111 10.111 10,111 10,111 16111 10,111 10,111 10.111 Apr. 5.133 5.833 5.813 5.833 5833 5,693 8833 S,AV 5,633 May-09 3,422 3,122 3,422 3,422 3,422 3,422 3,422 3,422 3,422 Jue479 2,411 2.411 2,411 2A11 2,411 2,411 2,411 2,411 2Ai1 Jul -09 2,178 2,178 2.178 2,178 2.17B 2,178 2,178 2,178 2,178 Aug -09 2,178 2,178 2,178 2.17B 2,178 2.178 2,178 2,178 2,178 Sep-09 2,333 21333 2 2333 2333 2,333 2,333 2,333 2,333 Od -09 4,822 4,622 4,822 4822 4822 4,42 4,822 4,022 4.822 Now 09 7,700 7,700 7700 7700 7700 7,LM 7,700 7.MO 7.700 coc -09 10856 10 10,858 10,666 10656 10656 10656 00,656 10,655 74,90 74,9W 74.90 749W 7400 74.900 74,900 74.9W 74.900 Timino MNaI CoMaC -0ollar a aguM, 1 2 3 4 ¢ 6 7 6 9 Jan -09 511242220 $106,22736 $98,13584 $103,56104 999,944.24 3116,219.84 5115,97872 $110,91520 $105,9722,4 Feb 3110.040.M 3101,472M 3911W.m 590208.0 6104040.00 $10796600 SIN.7"W $163.040W M.U8.0 Marl 8104,3%-06 59t1M566 $4,306.51 596,85349 51 W, 042.19 $97,470.01 SW,W7,Q $93,02131 588875.89 APrL $51"MOM $4, 846198 $47,480.62 55010547 $4,188.57 $58230.12 556.11346 S53,663.W $51,27207 MayA9 $31,910.15 $31,W332 $11.85500 $2939498 526368.38 $32985.1 $3291964 $31,402.40 $30.)938 Jun419 5212n.1 521,843.65 $19525.54 $20.71049 $18.78169 323.242.4 $23.19382 522.18130 $21.192.69 Ju499 $19.220.85 519,73268 $17,728.92 518,709.02 416.966.62 $20,995.92 $X.652.36 $20.037.60 $19,10,62 Aug49 $19,220.85 $19,73288 $17,72892 518,709.02 516,96662 $20,995,92 $20952.36 $20,03750 315,1".62 94P-0 520,580.73 521,138.90 S18S9062 520.040.41 $10,174.07 322,490.12 $21 "346 S21,463.W S20.M7.07 Oal -09 $42,554.15 543,68732 $39,26108 641,42098 $37,66338 $46,48401 $46,38764 $44,362.40 $42,365.38 Nov49 $60,630.00 $63,52700 $74,22800 $74074.00 $70,84000 567,683.06 $69,30000 $53,90.0 $53,900.00 Ce t9 $8 4AS2.M $XM23q $IM -72384 S1C251072 $$ 003520 SSIMN $959N.00 $ 74592.M S UM2.0 5883. 95110 5665,498.20 8837,220.00 $6U,297.68 $587,91896 $706,43340 $70,15728 $648,606.50 $625,513.76 s9aean calr„rannre Ll�ao Gala WO. kVi Un$CO61 Tm ,il ,eiN 674.1W 3 6,009.88)]8 8.92 S pd Martel N. (Ya 387,112 S ? 939.1" 399 Togs 1,M1612 3 8,949A6861 a" FCAC C9 I9 n Tinlno lOodel 5 1.a1kI LorYad SootAMMtl Auurrcd Sml "add P..el %ol Sod McMM 51,532646,33 CF ! uev9b Futuet GOnhatl Pu Martel Prices Gm Ca91 Purim Jan419 1] 86177031 17 8538 1 08004 70 l Wr s ]9.03307 S 9.W S 560.26962 39% F. b Ds 153815073.3 153015 190.800 39.018.7 s 900 S 411.16266 U% mw 4M 73074376 1 I'Mu M.9B9 39,744.53 $ 10.M S 337,44366 30% Apr- W ]89355.21 28 21 ]0095 7.00 25,439.91 S 9.M S 23],948.]4 33% INey -09 48101383.56 48101 W . 7 97 W.79 1],617.38 S B.W S 140,92). 0 38% Jun 331163329,3 33116 21,699 9 11,417. S ].M S ]9921.19 34% Ju9 40 90558359 6 31 98 12 960 0,9M, 1 1.743 .9 S 7.M S ]6550]5 38% Aug -09 3134543058 649533 19602 11743.44 S 7.W S 82.204.05 37% 09 38185937.11 38183 W183 20 ,99] 16,106.34 S 7 M $ 11,304.36 42% OC 9 6460563459 64508 43,398 21,20783 S ].M $ 146463.74 33% w".09 ".0u-09 10154049 101541 693" 32240.59 S 700 S 225,559]0 32% Oec09 1540456586 95901 58.141.66 S ].m S 406.991.81 38% M I 1041 812 6741" 36).)32 52939.168.83 s9aean calr„rannre Ll�ao Gala WO. kVi Un$CO61 Tm ,il ,eiN 674.1W 3 6,009.88)]8 8.92 S pd Martel N. (Ya 387,112 S ? 939.1" 399 Togs 1,M1612 3 8,949A6861 a" FCAC C9 I9 n 3185,835.12 3 11304.1 $ 29{139,47 5384.9641 3 148,453" 3 532549.85 $5M.2B1.W 3 125,683.70 $ 815,965.70 MIB,M% 5 400,99141 51223880157 Tinlno lOodel 5 1.a1kI Tdal System Jan -09 $972,376.68 $ 560269,62 51,532646,33 Feb-09 $920,136.00 $ 47 162.66 St,397 ,29566 Mar" 9845,89571 $ 393 "368 5/24328337 Apr -09 3479210.12 5 23794674 5 717,1 %.85 Maw 5276WtA1 5 140.827.1 S 416,829.47 JuM S192 S 79.921.19 S 271. 969.39 JuS 5173.48859 S 76554.73 5 250,043.32 Au009 $1]3,48969 5 82204.05 S 255,692164 3185,835.12 3 11304.1 $ 29{139,47 5384.9641 3 148,453" 3 532549.85 $5M.2B1.W 3 125,683.70 $ 815,965.70 MIB,M% 5 400,99141 51223880157 M N.0 Ea4n ®°n S 39],684.00 S 272,160.00 S 47020000 S 5 18 34 -0 S 403.8%.0 S 345,921 W S 362.921.00 S 3 W Sis, S 382 519 M S 64 $ 483,WJ.W $ 81] -9740 $ 4,%31H W 3MCMculeeore P"idW Load by MnO ascumae U ?I Coll, CoSI In RSU Pre4ltletl FCAC FCAC month--In MCF "CF M.,W Prima JamM 46453000 48458 S S.m Feo-W 30240000 M240 S 9.W M2,09 47026000 47026 S MM Apr -m 57950500 57951 9 S.M Mey-0 50479500 %480 S B.M Junta 49421500 49422 5 ).M JuM 54703"0 54703 S 7.00 Aug" 5260600 52600 S 7.W Sep4a 5175800 517" $ 7.W Ctl479 49511639 49511 3 7.M Nov-09 6M01M0 6M01 S 7.W DeN% 5482000 MW 5 7.00 824 S 7." $ fi49533 6 25.39542 101,541 S To l W Lad 649533 0.19 5 18.84255 N. Gas Cat $ 4,963124.00 7." 3 0.09 Per ❑n t Cost 5 764 M N.0 Ea4n ®°n S 39],684.00 S 272,160.00 S 47020000 S 5 18 34 -0 S 403.8%.0 S 345,921 W S 362.921.00 S 3 W Sis, S 382 519 M S 64 $ 483,WJ.W $ 81] -9740 $ 4,%31H W P1ed4Rb Load W U ?I Coll, CoSI In RSU Pre4ltletl FCAC FCAC month--In MCF Blended Stwdure jn cer unil EMS�90 173,535 6 858 6 785 8 on $ 131,125,34 753,818 5 4.e 5 7$5 $ 1.23 $ 18902678 7307" S 9.51 S 785 8 1.M S 218,94.80 78.936 S 9.M 3 785 S 1.24 5 97,51297 48.401 S 661 5 7185 S 0.78 3 MAT'Q 33116 5 821 S 745 3 036 S 12,W6.34 30.538 5 8.19 5 785 3 0.34 5 10,316% 311345 6 8.16 5 785 $ 031 $ 9.530.97 36163 S 007 5 785 3 In S 8 64608 S 824 S 7." $ 0.35 6 25.39542 101,541 S 844 5 7" 3 0.19 5 18.84255 154.48 S 7.84 S 7." 3 0.09 S 14622.15 S nl.232 38 M N.0 Ea4n ®°n S 39],684.00 S 272,160.00 S 47020000 S 5 18 34 -0 S 403.8%.0 S 345,921 W S 362.921.00 S 3 W Sis, S 382 519 M S 64 $ 483,WJ.W $ 81] -9740 $ 4,%31H W • Fuel /Power Cost Adjustment Year 2008 U DATE GAS ELECTRIC January 2008 $0.00000 $0.00000 February 2008 $0.00000 $0.00000 March 2008 $0.00000 $0.00591 April 2008 $0.00000 $0.00134 May 2008 $0.00000 $0.00487 June 2008 $0.00000 $0.00029 July 2008 $0.00000 $0.02191 August 2008 $0.00000 $0.00330 September 2008 $0.00000 $0.00063 October 2008 $0.00000 $0.00000 November 2008 $0.00000 $0.00000 December 2008 $0.0 0000 $0.00000 0 • AGENDA ITEM 6 Strategic Planning — Year 2008 in Review • Software Billing Conversion • Implemented Health Savings Account • MMUA Health /Safety Program • New Website • Executed Supplier Agreements for Purchases with Various Vendors • Eliminated PowerStat Billing System • Position Descriptions, Behavioral Rules, Code of Conduct and Ethics Adopted by Hutchinson Utilities Commissioners for the Hutchinson Utilities Commissioners • AMI Study • New Inventory Building • Plant 1 Building • Manpower Study Completed r� u n u r� u AGENDA ITEM 7 MMGA Pre-Pay Update 0 0 11 AGENDA ITEM 8 Electric Service Territory Update 0 0 AGENDA ITEM 9 Natural Gas Facility Extension Outside of City Limits 0 Ll CJ AGENDA ITEM 10 Payment in Lieu of Taxes (PILOT) (handout provided) • 0 Electric Utility Revenues Metered Revenues 2005 2006 2007 2005 2006 2007 Residential $ 4,721,685.00 $ 5,143,520.00 $ 5,235,201.00 $ 4,721,685.00 $ 5,143,520.00 $ 5,235,201.00 General Service $ 8,473,123.00 $ 8,931,857.00 $ 9,152,162.00 $ 8,473,123.00 $ 8,931,857.00 $ 9,152,162.00 Industrial $ 11,792,295.00 $ 12,950,208.00 $ 13,327,227.00 $ 11,792,295.00 $ 12,950,208.00 $ 13,327,227.00 $ 24,987,103.00 $ 27,025,585.00 $ 27,714,590.00 Street Lighting $ 146.00 $ 353.00 $ 128,933.00 Resale $ 1,193,883.00 $ 958.515.00 $ 2.085.418.00 $ 26,181,132.00 $ 27,984,453.00 $ 29,928,941.00 Other Operating Revenues Penalties /fees $ 188,923.00 $ 261,842.00 $ 254,648.00 Security lights $ 10,871.00 $ 10,987.00 $ 11,350.00 Pole Rental $ 1,667.00 $ 1.667.00 $ 2.432.00 $ 201,461.00 $ 274,496.00 $ 268,430.00 Natural Gas Revenues Metered Revenues 2005 2006 2007 2005 2006 2007 Residential $ 4,211,086.00 $ 4,080,123.00 $ 4,272,287.00 $ 4,211,086.00 $ 4,080,123.00 $ 4,272,287.00 Commercial $ 2,538,568.00 $ 3,421,933.00 $ 3,584,296.00 $ 2,538,568.00 $ 3,421,933.00 $ 3,584,296.00 Industrial $ 5,378,166.00 $ 4.633.541.00 $ 5.984.289.00 $ 5,378,166.00 $ 4,633,541.00 $ 5,984,289.00 $ 12,127,820.00 $ 12,135,597.00 $ 13,840,872.00 $ 12,127,820.00 $ 12,135,597.00 $ 13,840,872.00 Other Operating Revenues Gas Transportation contract $ 659,938.00 $ 657,746.00 $ 712,049.00 Transportation Electric Division $ - $ 1100.000.00 $ 1.100.000.00 $ 659,938.00 $ 1,757,746.00 $ 1,812,049.00 Total Revenues 2005 2006 2007 2005 2006 2007 Total Revenues $ 39,170,351.00 $42,152,292.00 $45,850,292.00 Metered $ 37,114,923.00 $ 39,161,182.00 $ 41,555,462.00 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% PILOT $ 1,077,184.65 $ 1,159,188.03 $ 1,260,883.03 $ 1,020,660.38 $ 1,076,932.51 $ 1,142,775.21 % Change Year Over Year 7.613% 8.773% 1 5.513% 6.114% r u 0 AGENDA ITEM 11 Discussion of Joint Billing 0