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08-31-2005 HUCM Regular Meeting August 31, 2005 Members present: President Craig Lenz; Vice President Donald Walser; Secretary David Wetterling; Commissioner Paul Ackland; Commissioner Steven Cook; General Manager Michael Kumm Member absent: Attorney Marc Sebora President Lenz called the meeting to order at 3:00 pm. Secretary Wetterling made a motion to approve the minutes of the July 27, 2005 Regular Meeting. Commissioner Ackland seconded the motion and it passed unanimously. Vice President Walser made a motion to ratify the payment of bills in the amount of $3,059,157.31 (detailed listing in payable book). Commissioner Cook seconded the motion and it passed unanimously. Manager Kumm discussed the financial/budget year-to-date report. On the balance sheet we have added three new accounts. Accounts receivable - MISO, Accounts payable - MISO, and Prepaid gas expense that helps with the fuel cost adjustment clause. With the contracts in place with Utilities Plus for purchased power, we have realized a substantial savings for our customers. While the energy prices are certainly high, without these contracts the price would be even higher than they are now. After discussion Secretary Wetterling made a motion to approve the financial statement and budget year to date. Commissioner Ackland seconded the motion and it passed unanimously. We should see a cash flow increase in the next couple of months. Commissioner Ackland made a motion to approve the change of language in the Operation and Maintenance Agreement with Great River Energy (tabled from July 27, 2005 regular meeting). Commissioner Cook seconded the motion and it passed unanimously. Don Merkins discussed requisition #1407 for stack testing at plant 2. This is an air permit requirement from the Minnesota Pollution Control Agency. We will do this in October before it gets too cold. Secretary Wetterling made a motion to approve requisition #1407 to Interpoll Laboratories Inc. Vice President Walser seconded the motion and it passed unanimously. Manager Kumm discussed having all our insurance renewals on the same date (January 1,2006 to December 31,2006) enabling us to manage and budget better. Two options are available for the boiler and machinery insurance renewal: 1. Issue a 4-month extension to the current policy, which would move the expiration date to 1-1-06. The premium for this extension would be $36,432 and includes a 15% rate credit. 2. Issue a 16-month policy effective 9-1-05 and expiring on 1-1-07. The premium for this 16-month policy would be $145,508 and includes at 15% rate credit. This credit amounts to a premium savings of $19,257. The advantage to the 16-month policy is that current rates are locked in for the next 16 months. Commissioner Ackland made a motion to approve option 2 of the boiler and machinery insurance renewal. Secretary Wetterling seconded the motion and it passed unanimously. Manager Kumm reported on the following: . R. W. Beck's cost of service study. A meeting is scheduled for September 2, 2005. There will be a presentation on the progress at next month's meeting. . Budget for 2006 is progressing well . MISO - transmission member . Business plan is in process . Condemnation hearings have started (August 30 & 31) . General funds transfer to City of Hutchinson - additional 5% Changed to: requested an additional 5% . Joint City/HUC meeting to be scheduled Division reports: Electric/Production division - Don Merkins Start date to construct Glencoe transmission line in 2 weeks HTI second feed New developments - we're caught up, waiting for developers so we can put new wires in the ground Highway 7 - met with City/DOT/DNR/HTC - DOT needs to have 2 ponds for run- off, but we have duct banks where they want to put the ponds. Until they decide what they want to do, we will not relocate at this time. That relocation could cost between $270,000 and $275,000. We will work with the DOT on this. Business division - Jan Sifferath Health insurance could go up as much at 20% or maybe more Recommend 80/20 coverage Dental plan is doing well - could increase coverage from $750 to $1000 Secured inventory - goal is to have system in place by end of the year Vending machine - looking into bottled water, bottled pop and sandwiches Gas division - John Webster (absent) Manager Kumm reported on the gas prices Legal reports: None Old Business Commissioner Ackland asked about the bill from our old cell phone carrier. Jan Sifferath informed him that the carrier wrote it off. Manager Kumm discussed the presentation given by Commissioner Ackland to the City a while back regarding putting a limit on HUC's contribution to City. Commissioner Cook will relay that information to the City Council. Commissioner Ackland discussed Manager Kumm's performance review. Manager Kumm was commended on cutting expenses for 2005. His concern for the bottom line of HUC is very much appreciated. The monthly reports are very informative with issues always being addressed. The improved employee moral with Manager Kumm's leadership is realized. Manager Kumm's biggest disappointment is the pipeline. That was a problem when he arrived, and it is out of our hands now. Manager Kumm has strengthened our relationship with the regulatory agencies and has been very responsive when dealing with the fuel cost adjustment clause issues. Commissioner Ackland recommends a 6% one-time only performance pay. Secretary Wetterling supports the 6% performance pay. Commissioner Cook informed the board that the City of Hutchinson offers 5% through the step program as performance pay. Vice President Walser agrees to a greater than 5% performance pay because of Manager Kumm's diligence in working through all the issues he's been faced with in the past year. President Lenz agrees to the 6% performance pay given the growth and opportunity afforded to HUC. Commissioner Ackland made a motion for a one-time 6% of the original base pay as a performance payment for outstanding performance, effective immediately. Secretary Wetterling seconded the motion. Manager Kumm reiterated that this is the best job he has ever had and appreciates the ease of working with the commission board and he appreciates the fact that his opinion has mattered. Commissioner Cook asked about a step program, but HUC only has a cost of living increase. Motion passed unanimously. Commissioner Cook reported that City Administrator Gary Plotz apologizes for not getting back to us regarding the meter reader position. Understanding the sense of urgency, Commissioner Cook will talk to Gary Plotz to see what his decision is. Commissioner Ackland asked about the small outages we've had. Feeder 5 is an old overhead line and with morning dew on the lightning arrestor, it shorts out and trips the breaker. Feeder 22 was struck by lightning and took out the secondary and primary, causing the outage for the hospital. Don Merkins reported on the conversions on the west side of Adams Street. The wire is in but the transformers are not set. All the funds are going into the Highway 7 project. Commissioner Cook asked if it's possible to hire a temp for the position of meter reader given the urgency in this matter. Manager Kumm said because City had an interest in in-house meter reading no thought has been given to a temp or to an independent contractor. New Business None Commission Ackland made a motion to adjourn at 4:48 pm. Vice President Walser seconded the motion and it passed unanimously. David Wetterling, Secretary ATTEST Craig Lenz, President 1 11 Regular Meeting August 31, 2005 Members present: President Craig Lenz; Vice President Donald Walser; Secretary David Wetterling; Commissioner Paul Ackland; Commissioner Steven Cook; General Manager Michael Kumm Member absent: Attorney Marc Sebora President Lenz called the meeting to order at 3:00 pm. Secretary Wetterling made a motion to approve the minutes of the July 27, 2005 Regular Meeting. Commissioner Ackland seconded the motion and it passed unanimously. Vice President Walser made a motion to ratify the payment of bills in the amount of $3,059,157.31 (detailed listing in payable book). Commissioner Cook seconded the motion and it passed unanimously. Manager Kumm discussed the financial /budget year -to -date report. On the balance sheet we have added three new accounts. Accounts receivable — MISO, Accounts payable — MISO, and Prepaid gas expense that helps with the fuel cost adjustment clause. With the contracts in place with Utilities Plus for purchased power, we have realized a substantial savings for our customers. While the energy prices are certainly high, without these contracts the price would be even higher than they are now. After discussion Secretary Wetterling made a motion to approve the financial statement and budget year to date. Commissioner Ackland seconded the motion and it passed unanimously. We should see a cash flow increase in the next couple of months. Commissioner Ackland made a motion to approve the change of language in the Operation and Maintenance Agreement with Great River Energy (tabled from July 27, 2005 regular meeting). Commissioner Cook seconded the motion and it passed unanimously. Don Merkins discussed requisition #1407 for stack testing at plant 2. This is an air permit requirement from the Minnesota Pollution Control Agency. We will do this in October before it gets too cold. Secretary Wetterling made a motion to approve requisition #1407 to Interpoll Laboratories Inc. Vice President Walser seconded the motion and it passed unanimously. Iq g0 Manager Kumm discussed having all our insurance renewals on the same date (January 1, 2006 to December 31, 2006) enabling us to better budget and manage. Two options are available for the boiler and machinery insurance renewal: 1. Issue a 4 -month extension to the current policy, which would move the expiration date to 1 -1 -06. The premium for this extension would be $36,432 and includes a 15% rate credit. 2. Issue a 16 -month policy effective 9 -1 -05 and expiring on 1 -1 -07. The premium for this 16 -month policy would be $145,508 and includes at 15% rate credit. This credit amounts to a premium savings of $19,257. The advantage to the 16 -month policy is that current rates are locked in for the next 16 months. Commissioner Ackland made a motion to approve option 2 of the boiler and machinery insurance renewal. Secretary Wetterling seconded the motion and it passed unanimously. Manager Kumm reported on the following: • R. W. Beck's cost of service study. A meeting is scheduled for September 2, 2005. There will be a presentation on the progress at next month's meeting. • Budget for 2006 is progressing well • MISO — transmission member • Business plan is in process • Condemnation hearings have started (August 30 & 31) • General funds transfer to City of Hutchinson — ladditional 5% • Joint City /HUC meeting to be scheduled Change made: added 'requested an' additional 5% Division reports: See September 28, 2005 minutes Electric /Production division — Don Merkins Start date to construct Glencoe transmission line in 2 weeks HTI second feed New developments — we're caught up, waiting for developers so we can put new wires in the ground Highway 7 — met with City /DOT /DNR/HTC — DOT needs to have 2 ponds for run- off, but we have duct banks where they want to put the ponds. Until they decide what they want to do, we will not relocate at this time. That relocation could cost between $270,000 and $275,000. We will work with the DOT on this. Business division — Jan Sifferath Health insurance could go up as much at 20% or maybe more Recommend 80/20 coverage Dental plan is doing well — could increase coverage from $750 to $1000 Secured inventory — goal is to have system in place by end of the year Vending machine — looking into bottled water, bottled pop and sandwiches Gas division — John Webster (absent) Manager Kumm reported on the gas prices Legal reports: None Old Business Commissioner Ackland asked about the bill from our old cell phone carrier. Jan Sifferath informed him that the carrier wrote it off. Manager Kumm discussed the presentation given by Commissioner Ackland to the City a while back regarding putting a limit on RUC's contribution to City. Commissioner Cook will relay that information to the City Council. Commissioner Ackland discussed Manager Kumm's performance review. Manager Kumm was commended on cutting expenses for 2005. His concern for the bottom line of HUC is very much appreciated. The monthly reports are very informative with issues always being addressed. The improved employee moral with Manager Kumm's leadership is realized. Manager Kumm's biggest disappointment is the pipeline. That was a problem when he arrived, and it is out of our hands now. Manager Kumm has strengthened our relationship with the regulatory agencies and has been very responsive when dealing with the fuel cost adjustment clause issues. Commissioner Ackland recommends a 6% one -time only performance pay. Secretary Wetterling supports the 6% performance pay. Commissioner Cook informed the board that the City of Hutchinson offers 5% through the step program as performance pay. Vice President Walser agrees to a greater than 5% performance pay because of Manager Kumm's diligence in working through all the issues he's been faced with in the past year. President Lenz agrees to the 6% performance pay given the growth and opportunity afforded to HUC. Commissioner Ackland made a motion for a one -time 6% of the original base pay as a performance payment for outstanding performance, effective immediately. Secretary Wetterling seconded the motion. Manager Kumm reiterated that this is the best job he has ever had and appreciates the ease of working with the commission board and he appreciates the fact that his opinion has mattered. Commissioner Cook asked about a step program, but HUC only has a cost of living increase. Motion passed unanimously. Commissioner Cook reported that City Administrator Gary Plotz apologizes for not getting back to us regarding the meter reader position. Understanding the sense of urgency, Commissioner Cook will talk to Gary Plotz to see what his decision is. Commissioner Ackland asked about the small outages we've had. Feeder 5 is an old overhead line and with morning dew on the lightning arrestor, it shorts out and trips the breaker. Feeder 22 was struck by lightning and took out the secondary and primary, causing the outage for the hospital. Don Merkins reported on the conversions on the west side of Adams Street. The wire is in but the transformers are not set. All the funds are going into the Highway 7 project. Commissioner Cook asked if it's possible to hire a temp for the position of meter reader given the urgency in this matter. Manager Kumm said because City had an interest in in -house meter reading no thought has been given to a temp or to an independent contractor. New Business None Commission Ackland made a motion to adjourn at 4:48 pm. Vice President Walser seconded the motion and it passed unanimously. I i U THIS RESTATED OPERATION AND MAINTENANCE AGREEMENT ( "Agreement "), made this day of July, 2005, between Great River Energy, a Minnesota Cooperative Corporation, on behalf of itself, United Power Association ( "UPA "), and Cooperative Power Association ( "CPA ") hereinafter called "GRE ", and Hutchinson Utilities Commission, an agency of the city of Hutchinson hereafter called "HUC ", such parties being hereafter referred to individually as "Party" or collectively as "Parties ", Witnesseth: 0.01 WHEREAS, UPA and HUC are Parties to an Interconnection and Interchange Agreement dated February 17, 1982, hereinafter referred to as the "Interconnection and Interchange Agreement ", which provides in Article 8.04 thereof that one Party may operate and maintain the interconnection facilities of the other Party; and 0.02 WHEREAS, GRE and HUC maintain a number of interconnections; and 0.03 WHEREAS, UPA, HUC and Southern Minnesota Municipal Power Agency ( "SMMPA ") are Parties to an Integrated Transmission Agreement dated July 24, 1983 and amended by Amendment No. 1, dated July 24, 1983 and by Amendment No. 2, dated November 24, 1986, and by Amendment No. 3, dated December 27, 1989; and 0.04 WHEREAS, UPA and HUC are Parties to an Operation and Maintenance Agreement, dated December 27th,1989, and 0.05 WHEREAS, HUC sold the Blaine 230/69 kV substation, including 60/80/112 MVA transformer, circuit switcher, and four 69 kV circuit breakers to GRE on January 24, 2003. 0.06 WHEREAS, UPA and CPA merged on January 1, 2000 to become GRE; and 0.07 WHEREAS, HUC desires to contract with GRE to perform the operation and maintenance on certain HUC facilities. NOW THEREFORE, the Parties agree as follows: 1.01 Operation — Switching and Substation GRE shall have operational authority of HUC Switching and Substation Facilities listed in Exhibit A, attached hereto as amended from time to time with mutual agreement of GRE and HUC. This requires that any device listed in exhibit A may only be operated at the direction of GRE system operations. 13 Operation provided hereunder shall include, but not necessarily be limited to routine and emergency switching as required to operate the ITA. Scheduled and emergency switching may be done by either party as mutually agreed to by both parties on a case -by -case basis. All switching will be done under the direction of GRE system operations. 1.02 Maintenance of Metering Facilities. GRE will maintain the meters listed in Exhibit A. Maintenance service provided hereunder shall be on both a routine and emergency basis, using GRE's standard practices, and shall include but not necessarily be limited to: a. Testing, b. Removal, C. Repair and /or replacement, and d. Programming. 1.03 Emergency Maintenance. HUC may contact GRE to request emergency maintenance. Emergency Maintenance shall be mutually agreed upon on case -by -case basis. 1.04 Materials and Supplies. Materials and supplies required for the maintenance of the meters listed in Appendix A shall be as follows: a. All parts pertaining to meters shall be furnished by GRE unless the Parties agree otherwise. b. All materials and supplies furnished by GRE in providing the maintenance service hereunder shall become the property of HUC. C. In providing the maintenance service hereunder, where materials and supplies are removed and replaced, such removed materials and supplies shall become the property of GRE. The billing rendered to HUC for such maintenance service shall be reduced in the amount of the salvage value, if any, of such materials and supplies removed. d. When GRE chooses a new standard of equipment, GRE shall notify HUC in writing and HUC shall make arrangements to change -out the equipment or provide GRE with replacement parts. 1.05 All maintenance performed by GRE hereunder shall be performed in accordance with sound engineering practices. A report on the maintenance performed shall be submitted by GRE to HUC with the invoice for service. 1.06 Determination of Charges. a. Costs for Testing and Maintenance. The costs associated with meter testing and maintenance, and emergency maintenance, shall be based on actual costs. Such costs shall include overhead, administrative and general expenses. b. Costs for Operation. These costs are negligible and are recovered in a System Control Agreement. 1.07 Payment. In consideration of the services provided hereunder, HUC will pay GRE within thirty -days. 1.08 Right of Access. GRE shall contact HUC control center to request the right to enter HUC facility property for the purpose of performing any work incident to rendering the operation and maintenance services under this Agreement. HUC shall make available and accompany GRE employees for any and all work in the 3M substation. 1.09 Limitations of Liability. a. The charges hereunder do not include any provision for contingent liabilities on the part of GRE for defective equipment, materials, supplies, or installation. No warranties of any kind, whether statutory, written, oral or implied, shall apply, except that GRE will provide HUC with the benefit of any manufacturer's warranties which may be applicable to the equipment. Any repair or replacement of equipment, materials, and supplies, or correction of installation, and operation in connection therewith, shall be deemed to be the performance of operation and maintenance pursuant to all terms of this Agreement. b. Neither party shall be liable to the other for any direct, special, or consequential damages, and each party shall defend, indemnify, and save harmless the other against any and all claims for injury or damage to persons or property occasioned in any manner from any activities of GRE in performing maintenance in fulfillment of this agreement. 1.10 Term. This Agreement shall become effective on the date first above written and shall remain in full force and affect until a 30 -day written notice of intent to terminate is delivered by either Party to the other Party. 1.02 This Agreement, as of its effective date, amends and restates the Operations and Maintenance Agreement between HUC and UPA, dated December 27, 1989, as amended. This Agreement, from its effective date, supersedes and has merged into it all prior oral and written agreements on the same subjects by or between the Parties hereto, with the affect that this Agreement shall control, except as the Parties otherwise agree in writing. IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their respective duly authorized representatives as of the day and year first above written. GREAT RIVER ENERGY Its Manager, Field Services HUTCHINSON UTILITIES COMMISSION LIM Its General Manager 0 L' 1 u EXHIBIT A DESCRIPTION OF FACILITIES RESTATED OPERATION AND MAINTENANCE AGREEMENT Between GREAT RIVER ENERGY And HUTCHINSON UTILITIES COMMISSION HUC's facilities to be operated by GRE are as follows: LOCATION NOMINCLATURE TYPE McLeod Substation (C38) 38WB1* Breaker 38WB2* Breaker (* - Pending a possible upcoming interconnection by the City of Glencoe to the McLeod Substation, GRE will operate the 38WB1 breaker until the City of Glencoe's interconnection and then instead GRE will operate 38WB2 after the City of Glencoe has completed the interconnection to the McLeod Substation.) Hutchinson Substation (0) C3NB1 C3NB2 C3NB8 C3NB9 C3WCS 10 C3WB11 C3 WB 12 LTC 3M Substation (C214) 214WSM1 214WSM2 Breaker Breaker Breaker Breaker Circuit Switcher Breaker Breaker Transformer Motor Operated Switches Motor Operated Switches HUC's meters to be maintained by GRE are as follows: LOCATION METER McLeod Substation (C38) McLeod meter (1) (Siemens 25 10) Hutchinson Substation (0) 3M Substation (C214) C3NB3 /C3NB7 (1) (Siemens 25 10) C3NB9 (1) (Siemens 25 10) 3M meter (1) (Siemens 25 10) 1 -0 m c O y CD 0 W CD Q W D z C7 D m W --q m m 0 K O v m m lCD O O � OD � O --iwcn ov v n>�m C7 X N cQ (D Ch � v O � cn O ~ U1 c CD' n v =, 52 X m r M -4rnm> wwTr- w 0 Z r r 0 CD In 0 � cyl 1 ") > zvo Ul z °rn0 X m L cn 0 c n 2 z O z W r -► m v -0 i N = x o C C fD n E n ww =C5= 61 N N 000VQDO .ice .i- Z z z rn Z Z � Cit � w m (A CA o 0 O N O z x CD .a c N O O z 0 O O O y 0 Z _E CA O z X C to O z .n O I PLANNERS P.O. Box 68 • 135 Third Avenue Southeast Hutchinson, Minnesota 55350 We have been provided 2 options for renewing the Hutchinson Utilities boiler and machinery coverage, which expires on 9/1/05. These options take into account the commissions desire to eventually get to a January 1" date for all insurance coverage. Limit of Liability: $50,000,000 OPTION #1 Issue a 4 month extension to the current policy, which would move the expiration date to 1/1/06. The premium for this extension would be $36,432 and includes a 15% rate credit. OPTION #2 Issue a 16 month policy effective 9/1/05 and expiring on 1/1/07. The premium for this 16 month policy would be $145,508 and includes a 15% rate credit. This credit amounts to a premium savings of $19,257. The advantage to the 16 month policy is that current rates are locked in for the next 16 -months. Inspection & Engineering Fee: Propose to perform boiler surveys and jurisdictional inspections. Annual Engineering Fee is $9,125. TRIA — The premium charge is $4,900 for Certified and $1,845 for Non Certified Terrorism coverage for the 16 month policy. Telephone 320 - 587 -2299 1- 800 - 535 -1669 Fax 320 - 587 -0808 1 STATEMENT OF VALUES BOILER & MACHINERY Hutchinson Utilities Commission SIGNED TITLE _ DATE Item # Description, Location & Occupancy of Covered Pro erty Coverage Values Power Plant #2, Unit #1 (Gas — 43500kw) Equipment $15409,840 1 1100 Industrial Blvd., Hutchinson MN , Power Plant #2, Unit #1 (Steam — 11500kw) Equipment $25,965,000 2 1100 Industrial Blvd., Hutchinson MN Power Plant #2, Unit #9 (27600kva) Equipment $12,350,000 3 1100 Industrial Blvd., Hutchinson MN ] Power Plant #2, Cooling To Equipment $ 800,000 4 1100 Industrial Blvd., Hutchinson MN Power Plant #2, Unit #1 (Transformer) Equipment $ 884,000 5 1100 Industrial Blvd., Hutchinson MN Plant #2, Substation (42mva &5mva &3 VR) Equipment $ 1,434,000 6 1100 Industrial Blvd., Hutchinson MN (Controls &SG) Buildin $ 637,000 7 Power Plant #1, Unit #2 (2500kva) 444' Equipment $ 1,823,000 Ave NE., Hutchinson MN 8 Power Plant #1, Unit #3 (5000kva) 444h Ave NE., Hutchinson MN Equipment $ 3,700,000 9 Power Plant #2, Unit #4 (5000kva) 44-4h Ave Equipment $ 3,700,000 NE., Hutchinson MN 10 Power Plant #1, Unit #5 (2675kva) 44 -4"' Ave NE., Hutchinson MN Equipment $ 1,823,000 11 Power Plant #1, Unit #6 (2670kva) 44 -4t' Ave NE., Hutchinson MN Equipment $ 1,823,000 12 Power Plant #1, Unit #7 (6250kva) 44-4' Ave NE., Hutchinson MN Equipment $ 4,219,000 13 Power Plant #1, Unit #8 (17265kva) 44-4h Equipment $ 8,600,000 Ave NE., Hutchinson MN 14 Power Plant #1, Cooling Tower 444x' Ave NE., Hutchinson MN Equipment $ 615,000 15 Power Plant #1, Fuel Storage Tank 44-4' Ave NE., Hutchinson MN Equipment $ 450,000 Hutchinson Substation (84mva &9 Bkr &ICS) Contents Equipment $ 30,000 $ 2,419,000 16 125 East Gate Drive, Hutchinson MN (Controls) Building $ 415,000 McLeod Substation (187mva &4Bkr) Equipment $ 4,380,000 17 13689 Page Ave., Hutchinson MN (Controls) Buildin $ 350,000 HTI Substation (28mva &ICS) Equipment $ 622,000 18 40 West Highland Park Dr., Hutchinson MN (Controls&SG) Building $ 380,000 19 Plant #1 Substation (36mva &ICS) 44-4h Equipment $ 1,076,000 Ave NE., Hutchinson MN (Controls &SG ) Building 3M Substation (47mva&1CS) _L1,680,000 Equipment $ 861,000 20 905 Adams St SE., Hutchinson MN (Controls &SG) Building $ 468,000 Total All Values $96,913,840 SIGNED TITLE _ DATE Schedule of Locations Named Insured; Hutchinson Utilities Commission Policy Number ................ STA 410 28 37 Issue Date...... 09/01/2005 Effective Date ................. 09/01/2005 Location Number Item No. Location Address Location Value Location No. 001 1&2 Power Plant 2 /(Gas- 43500kw) $ 41,374,840 (Steam- 11500kw) 1100 Industrial Blvd. Hutchinson, MN 55350 Location No. 002 4 Cooling Tower at Plant #2 $ 800,000 1100 Industrial Blvd. Hutchinson, MN 55350 Location No. 003 3 Power Plant #2, Unit #9 $ 12,350,000 1100 Industrial Blvd. Hutchinson, MN 55350 Location No. 004 5 Power Plant #2,Unit 1 $ 884,000 (Transformer) 1100 Industrial Blvd. Hutchinson, MN 55350 Location No. 005 6 Plant # 2, Substation $ 2,071,000 1100 Industrial Blvd. Hutchinson, MN 55350 Location No. 006 7 Power Plant #1, Unit #2 $ 1,823,000 444h Ave NE Hutchinson, MN 55350 Location No. 007 8 Power Plant #1, Unit #3 $ 3,700,000 44 -4' Ave NE Hutchinson, MN 55350 EUN SCBLOC 12/1997 Page 1 of 3 Named Insured Policy Number. Effective Date. Schedule of Locations(cont. Hutchinson Utilities Commission STA 410 28 37 Issue Date 09/01/2005 09/01/2005 Location Number Item No. Location No. 008 9 Location No. 009 10 Location No. 010 11 Location No. 011 12 Location No. 012 13 Location No. 013 14 Location No. 014 15 Location No. 015 16 Location Address Location Value Power Plant #2, Unit #4 $ 3,700,000 44 -4 ' Ave NE Hutchinson, MN 55350 Power Plant #1, Unit #5 $ 1,823,000 44 -4a` Ave NE Hutchinson, MN 55350 Power Plant #l, Unit #6 $ 1,823,000 44 -4t'' Ave NE Hutchinson, MN 55350 Power Plant #1, Unit #7 $ 4,219,000 44 -4' Ave. NE Hutchinson, MN 55350 Power Plant #1, Unit #8 $ 8,600,000 44 -4`t' Ave NE Hutchinson, MN 55350 Power Plant #1, Cooling Tower $ 615,000 44 -4' Ave NE Hutchinson, MN 55350 Power Plant #1, Fuel Storage Tank $ 480,000 44 -4' Ave NE Hutchinson, MN 55350 Hutchinson Substation $ 2,834,000 125 East Gate Drive (Controls). EUN SCHLOC 12/1997 Page 2 of 3 Named Insured: Policy Number, Effective Date. Schedule of Locations(cont.) Hutchinson Utilities Commission STA 410 28 37 Issue Date 09/01/2005 09/01/2005 Location Number Item No, Location Address Location No. 016 17 McLeod Substation. 13689 Page Ave. (Controls) Location No. 017 18 HTI Substation 40 West Highland Park Drive (Controls & SG) Location No. 018 19 Plant 41 Substation 44 -4'h Ave. NE (Controls & SG) Location No. 019 20 3M Substation 905 Adams Street S.E. (Controls & SG) EUN SCHLOC 12/1997 Page 3 of 3 Location Value $ 4,730,000 $ 1,002,000 $ 2,756,000 $ 1,329,000