01-28-2009 HUCMRegular Meeting
January 28, 2009
Members present: President Donald H. Walser; Vice President David Wetterling;
Secretary Dwight Bordson; Commissioner Robert Hantge; General Manager Michael
Kumm
Members absent: Commissioner Craig Lenz; Attorney Marc Sebora
Present Walser called the meeting to order at 3:00 p.m.
President Walser called for the commissioner reorganization. David Wetterling
nominated Dwight Bordson for the position of president. A motion was made by Robert
Hantge, seconded by David Wetterling to close nominations and elect Dwight Bordson
as president. Motion was unanimously carried.
Dwight Bordson nominated Robert Hantge for the position of vice president. A motion
was made by David Wetterling, seconded by Dwight Bordson to elect Robert Hantge as
vice president. Motion was unanimously carried.
Dwight Bordson appointed David Wetterling as secretary.
Dwight Bordson appointed Marc Sebora as legal counsel.
Dwight Bordson appointed Lin Madson as recording secretary.
A motion was made by Vice President Wetterling, seconded by Secretary Bordson to
designate Wells Fargo as depository for utility funds. Motion was unanimously carried.
The minutes of the December 30, 2008 regular meeting were reviewed. A motion was
made by Vice President Wetterling, seconded by Commissioner Hantge to approve the
minutes as written. Motion was unanimously carried.
GM Kumm presented the December 2008 payables. After discussion, a motion was
made by Commissioner Hantge, seconded by Secretary Bordson to ratify the payment
of bills in the amount of $4,006,325.87 (detailed listing in payables book). Motion was
unanimously carried.
GM Kumm presented the December 2008 financial statements /budget year -to -date.
After discussion, a motion was made by Secretary Wetterling, seconded by
Commissioner Hantge to approve the December 2008 financial statements /budget year -
to -date. Motion was unanimously carried.
The agreement for professional services with Power System Engineering, Inc. for
Advanced Metering Infrastructure Services (tabled from December 30, 2008 regular
meeting) was presented. Two changes were made to the terms and conditions. Risk
Allocation section: The consultants' liability shall not exceed $150,000. Ownership of
Documents section: Shall remain the property of Hutchinson Utilities Commission. A
motion was made by Vice President Wetterling, seconded by Secretary Bordson to
approve the changes to the agreement for professional services with Power System
Engineering, Inc. for Advanced Metering Infrastructure Services (tabled from December
30, 2008 regular meeting). Motion was unanimously carried.
GM Kumm presented changes to policies and requirements booklet, section: Errors In
Billing. A motion was made by Secretary Bordson, seconded by Commissioner Hantge
to approve the changes to policies and requirements booklet, section: Errors In Billing.
Motion was unanimously carried. (See attached.)
GM Kumm presented the policy on Inserts With Utility Bills. This policy needs to be
rescinded, changed, and added to the policies and requirements booklet. After
discussion, a motion was made by Commissioner Hantge, seconded by Secretary
Bordson to rescind the policy on inserts with utility bills that was adopted January 22,
1987, and adopt new policy on inserts with utility bills, recommended by staff, and add it
to the policies and requirements booklet. Motion was unanimously carried. (See
attached.)
GM Kumm discussed the level of authority on purchasing limits. The State of Minnesota
has increased the amount of formal bids from $15,000 to $25,000 and we need to
change our policy on purchasing to reflect that change. After discussion it was decided
to include our credit card policy on next month's agenda. After further discussion, a
motion was made by Secretary Bordson, seconded by Vice President Wetterling to
approve the changes to our policy on purchasing. Motion was unanimously carried.
(See attached.)
Discussion was held regarding the agenda that HUC compiled for the joint HUC /City
meeting to be held on Thursday, January 29, 2009 at 4:00 at the Event Center. GM
Kumm discussed the handouts that were included in the packets for the joint meeting
which include: electric and natural gas rate comparisons; electric reliability indices;
President Obama's New Energy for America; HUC's integrated resource plan - electric;
time diversity model - natural gas; rate stability -fuel /power cost adjustment; and payment
in lieu of taxes that he'll discuss at the joint meeting. As of today, we have not heard
from City if they have any agenda items to discuss.
Steve Lancaster presented requisition #003356 for pad mounted transformers from
RESCO. These are inventory for projects in 2009. After discussion, a motion was made
by Vice President Wetterling, seconded by Secretary Bordson to approve requisition
#003356 for pad mounted transformers from RESCO for $52,680.23. Motion was
unanimously carried. (See attached.)
Steve Lancaster presented requisition #003377 for 22,500' conductor from Border
States. This is inventory for the conversion projects in 2009. After discussion, a motion
was made by Commissioner Hantge, seconded by Secretary Bordson to approve
requisition #003377 for 22,500' conductor from Border States for $27,916.31. Motion
was unanimously carried. (See attached.)
Steve Lancaster presented requisition #003384 for cooling tower fan blade replacement
at plant 2 from Cooling Tower Contractors. The blades have become unbalanced over
time and this maintenance needs to be completed for the cooling towers to function
properly. After discussion, a motion was made by Vice President Wetterling, seconded
by Secretary Bordson to approve requisition #003384 for cooling tower fan blade
replacement at plant 2 from Cooling Tower Contractors for $22,162. Motion was
unanimously carried. (See attached.)
February's 2009 regular commission meeting was rescheduled. GM Kumm will be
attending the 2009 APPA legislative rally in Washington, D.C., and will not be able to
attend the February regular commission meeting. After discussion, it was decided to
reschedule the February regular commission meeting on Monday, March 2, 2009 at
3:00 p.m.
Division reports
Electric — Steve Lancaster
• The MMUA diesel generation workshop has been cancelled.
Gas — John Webster
• Handed out the 2008 3rd party damage report — 3 hits
Business — none
GM Kumm reported that our contracted meter reader has indicated she no longer wants
to read meters. We'll wait for the official written notice from her, then in 90 days the
contract will expire.
Legal Update
GM Kumm reported that our attorneys Larkin & Hoffman reached a settlement
agreement with the EQB for $150,000 to be used for future soil de- compaction.
We extended that agreement to December of 2008. If there were any funds left
over, they were to be spent on a study for soil compaction. The attorneys from
SibRenFair feel they should receive those left over funds. Our attorneys Mr.
VanCleve and Mr. Sebora have drafted a letter with a copy of the agreement and
have sent the letter to the attorneys for SibRenFair.
Unfinished Business
Amend motion to the Medica Contract, Article 2, Section 2.1: Term and Renewal:
Jan Sifferath did ask for the requested change from 30 days to 60 days for
notification of any modifications to these contracts, but the request for the
change was denied. Therefore, the motion does not need to be amended.
Territory agreement and state law
We will work with Glencoe and reach an agreement.
New Business
Electric reliability indices
We are 10 -20 times more reliable than the investor owned utilities. (See
attached.)
Electric rate comparison
Comparison between 2007 and 2008 residential billing. (See attached.)
Natural gas rate comparison
Comparison between 2007 and 2008 residential, commercial and
industrial billing. (See attached.)
There being no further business, a motion was made by Vice President Wetterling,
seconded by Commissioner Hantge to adjourn the meeting at 4:48 p.m. Motion was
unanimously carried.
ATTEST:
Dwight Bordson, President
David Wetterling, Secretary
Regular Meeting
January 28, 2009
Members present: President Donald H. Walser; Vice President David Wetterling;
Secretary Dwight Bordson; Commissioner Robert Hantge; General Manager Michael
Kumm
Members absent: Commissioner Craig Lenz; Attorney Marc Sebora
Present Walser called the meeting to order at 3:00 p.m.
President Walser called for the commissioner reorganization. David Wetterling
nominated Dwight Bordson for the position of president. A motion was made by Robert
Hantge, seconded by David Wetterling to close nominations and elect Dwight Bordson
as president. Motion was unanimously carried.
Dwight Bordson nominated Robert Hantge for the position of vice president. A motion
was made by David Wetterling, seconded by Dwight Bordson to elect Robert Hantge as
vice president. Motion was unanimously carried.
Dwight Bordson appointed David Wetterling as secretary.
Dwight Bordson appointed Marc Sebora as legal counsel.
Dwight Bordson appointed Lin Madson as recording secretary.
A motion was made by Vice President Wetterling, seconded by Secretary Bordson to
designate Wells Fargo as depository for utility funds. Motion was unanimously carried.
The minutes of the December 30, 2008 regular meeting were reviewed. A motion was
made by Vice President Wetterling, seconded by Commissioner Hantge to approve the
minutes as written. Motion was unanimously carried.
GM Kumm presented the December 2008 payables. After discussion, a motion was
made by Commissioner Hantge, seconded by Secretary Bordson to ratify the payment
of bills in the amount of $4,006,325.87 (detailed listing in payables book). Motion was
unanimously carried.
GM Kumm presented the December 2008 financial statements /budget year -to -date.
After discussion, a motion was made by Secretary Wetterling, seconded by
Commissioner Hantge to approve the December 2008 financial statements /budget year -
to -date. Motion was unanimously carried.
The agreement for professional services with Power System Engineering, Inc. for
Advanced Metering Infrastructure Services (tabled from December 30, 2008 regular
meeting) was presented. Two changes were made to the terms and conditions. Risk
Allocation section: The consultants' liability shall not exceed $150,000. Ownership of
Documents section: Shall remain the property of Hutchinson Utilities Commission. A
motion was made by Vice President Wetterling, seconded by Secretary Bordson to
approve the changes to the agreement for professional services with Power System
Engineering, Inc. for Advanced Metering Infrastructure Services (tabled from December
30, 2008 regular meeting). Motion was unanimously carried.
GM Kumm presented changes to policies and requirements booklet, section: Errors In
Billing. A motion was made by Secretary Bordson, seconded by Commissioner Hantge
to approve the changes to policies and requirements booklet, section: Errors In Billing.
Motion was unanimously carried. (See attached.)
GM Kumm presented the policy on Inserts With Utility Bills. This policy needs to be
rescinded, changed, and added to the policies and requirements booklet. After
discussion, a motion was made by Commissioner Hantge, seconded by Secretary
Bordson to rescind the policy on inserts with utility bills that was adopted January 22,
1987, and adopt new policy on inserts with utility bills, recommended by staff, and add it
to the policies and requirements booklet. Motion was unanimously carried. (See
attached.)
GM Kumm discussed the level of authority on purchasing limits. The State of Minnesota
has increased the amount of formal bids from $15,000 to $25,000 and we need to
change our policy on purchasing to reflect that change. After discussion it was decided
to include our credit card policy on next month's agenda. After further discussion, a
motion was made by Secretary Bordson, seconded by Vice President Wetterling to
approve the changes to our policy on purchasing. Motion was unanimously carried.
(See attached.)
Discussion was held regarding the agenda that HUC compiled for the joint HUC /City
meeting to be held on Thursday, January 29, 2009 at 4:00 at the Event Center. GM
Kumm discussed the handouts that were included in the packets for the joint meeting
which include: electric and natural gas rate comparisons; electric reliability indices;
President Obama's New Energy for America; HUC's integrated resource plan - electric;
time diversity model - natural gas; rate stability - fuel /power cost adjustment; and payment
in lieu of taxes that he'll discuss at the joint meeting. As of today, we have not heard
from City if they have any agenda items to discuss.
Steve Lancaster presented requisition #003356 for pad mounted transformers from
RESCO. These are inventory for projects in 2009. After discussion, a motion was made
by Vice President Wetterling, seconded by Secretary Bordson to approve requisition
#003356 for pad mounted transformers from RESCO for $52,680.23. Motion was
unanimously carried. (See attached.)
Steve Lancaster presented requisition #003377 for 22,500' conductor from Border
States. This is inventory for the conversion projects in 2009. After discussion, a motion
was made by Commissioner Hantge, seconded by Secretary Bordson to approve
requisition #003377 for 22,500' conductor from Border States for $27,916.31. Motion
was unanimously carried. (See attached.)
Steve Lancaster presented requisition #003384 for cooling tower fan blade replacement
at plant 2 from Cooling Tower Contractors. The blades have become unbalanced over
time and this maintenance needs to be completed for the cooling towers to function
properly. After discussion, a motion was made by Vice President Wetterling, seconded
by Secretary Bordson to approve requisition #003384 for cooling tower fan blade
replacement at plant 2 from Cooling Tower Contractors for $22,162. Motion was
unanimously carried. (See attached.)
February's 2009 regular commission meeting was rescheduled. GM Kumm will be
attending the 2009 APPA legislative rally in Washington, D.C., and will not be able to
attend the February regular commission meeting. After discussion, it was decided to
reschedule the February regular commission meeting on Monday, March 2, 2009 at
3:00 p.m.
Division reports
Electric — Steve Lancaster
• The MMUA diesel generation workshop has been cancelled.
Gas — John Webster
• Handed out the 2008 3rd party damage report — 3 hits
Business — none
GM Kumm reported that our contracted meter reader has indicated she no longer wants
to read meters. We'll wait for the official written notice from her, then in 90 days the
contract will expire.
Legal Update
GM Kumm reported that our attorneys Larkin & Hoffman reached a settlement
agreement with the EQB for $150,000 to be used for future soil de- compaction.
We extended that agreement to December of 2008. If there were any funds left
over, they were to be spent on a study for soil compaction. The attorneys from
SibRenFair feel they should receive those left over funds. Our attorneys Mr.
VanCleve and Mr. Sebora have drafted a letter with a copy of the agreement and
have sent the letter to the attorneys for SibRenFair.
Unfinished Business
Amend motion to the Medica Contract, Article 2, Section 2.1: Term and Renewal:
Jan Sifferath did ask for the requested change from 30 days to 60 days for
notification of any modifications to these contracts, but the request for the
change was denied. Therefore, the motion does not need to be amended.
Territory agreement and state law
We will work with Glencoe and reach an agreement.
New Business
Electric reliability indices
We are 10 -20 times more reliable than the investor owned utilities. (See
attached.)
Electric rate comparison
Comparison between 2007 and 2008 residential billing. (See attached.)
Natural gas rate comparison
Comparison between 2007 and 2008 residential, commercial and
industrial billing. (See attached.)
There being no further business, a motion was made by Vice President Wetterling,
seconded by Commissioner Hantge to adjourn the meeting at 4 :48 p.m. Motion was
unanimously carried.
1
ATTEST: (a fyt ( �
Dwight Bor on, President
David Wetterling, Secretary
Professional Services Proposal for
Hutchinson Utilities
for
AMI Procurement
Consulting Services
December 16, 2008
Contact: Bob Herbst
2000 Engel Street
Madison, WI 53713
Direct: 608- 268 -3504
Fax: 608 - 222 -9378
Email: herbstb @powersystem.org
Web Site: www.powersystem.org
Minneapolis, MN
Indianapolis, IN
4:41_
Power System
Engineering. Inc.
OFFICES IN:
2000 Engel Street
MADISON. WI
MINNEAPOLIS, MN
Madison, WI 53713
COLUMBUS, OH
Fax: (608) 222-9378
INDIANAPOLIS, IN
Tel: (608) 222 -8400
Web Site: www.powersystem.org
December 16, 2008
Steve Lancaster, Director of Electric Division [via email: slancaster@ci.hutchinson.mn.us]
John Webster, Director of Natural Gas Division [via email: jwebster@ci.hutchinson.mn.us]
Hutchinson Utilities
225 Michigan St SE
Hutchinson, MN 55350
320 - 587-4746
Subject: Scope of Services for AMI Procurement Services
Dear Steve and John,
We enjoyed speaking with you last Friday and appreciate this opportunity to summarize, per our
discussion, Power System Engineering's Advanced Metering Infrastructure (AMI) procurement
services for Hutchinson Utilities.
Power System Engineering (PSE) has developed a solid AMI procurement process resulting
from our extensive experience working with many utilities across the country. This process
works very well and results in the utility purchasing an AMI system that meets Hutchinson
Utility's needs at the lowest possible price.
AMI Procurement Process Steps
PSE's in -depth AMI procurement process includes all of the following steps. The attached
proposal provides detail.
1. Evaluate and select the most appropriate AMI technology for the utility.
2. Present an introductory AMI workshop onsite at Hutchinson's offices. This workshop will
introduce the many AMI benefits and wireless technology and capabilities and will be
conducted in conjunction with a "kick off' meeting.
3. Identify AMI requirements. We conduct a thorough needs analysis and gather information
from all utility department project team members.
4. Evaluate wide area communications technologies and conduct a high -level overview of the
available communications backhaul media to transport AMI data from the field to the utility
headquarters. This information will be included in the RFP and will aid Hutchinson with a
vendor decision and its plans for future system implementation_
Hutchinson Utilities
Power System Engineering, Inc.
5. Develop a request for proposal (RFP). This includes all the requirements gathered, contract
terms and conditions, and questions that really bring out the differences between the bidders.
Our RFP seeks the very best bids and includes contract language that helps to protect
Hutchinson Utilities.
6. Solicit competitive proposals from select AMI vendors
7. Evaluate AMI vendor responses, facilitate vendor presentations at the utility, and help the
utility select the best AMI solution.
8_ Oversee contract negotiations. We have saved utilities a lot of money during this process
because we know what other utilities have paid for the same AMI systems and we know how
to ensure that final prices for AMI equipment (and meters) are the lowest possible.
9. As an option, and not included in the pricing below, PSE can offer project management
services. PSE will help the utility during the initial phases of the AMI system deployment to
ensure the AMI system installation gets off to a smooth start. These services continue as long
as the utility and PSE feel they are required. PSE will furnish proposals for AMI project
implementation support and work process management review at the request of Hutchinson
Utilities.
Who is PSE?
Power System Engineering, Inc. (PSE) is a full service consulting firm. for electric utilities. The
professionals at PSE include engineers, IT and communication experts, utility strategy experts,
economists, and financial analysts. Our team has extensive experience in all facets of the utility
industry.
PSE was established in 1974 to serve the engineering and technology needs of utilities. Since
1974, we have served more than 250 clients including municipal utilities, distribution
cooperatives, G &Ts, and IOUs. PSE is 100% employee owned and managed, with about 55
employees and four offices in Wisconsin, Ohio, Minnesota, and Indiana.
The PSE Advantage
PSE is an independent consulting firm with no sales ties or marketing affiliations with any
vendors. We are not a value -added reseller (VAR) of any software, hardware, or services from
any supplier. Our entire business model is based on being an agent, advocate, resource, and
technical advisor to our clients.
We are well qualified for this project because of our AMI, communication, and utility
automation expertise. Our consulting team consists of individuals with proven track records who
have worked together on many AMI projects.
PSE has a proven AMI procurement process that has helped utilities select the best system and
save money. Our company understands utility operations, utility automation, and wide area
communications, our staff experience, working on projects similar to yours, ensures the best
possible AMI system decision for the utility.
Hutchinson Utilities iii PSE's AMI Services
Power System Engineering, Inc.
Our Objective
PSE staves to provide our clients with consulting expertise in the areas desired and to the
appropriate level of detail. PSE is flexible and our final solution and price depend on the utility's
desires. Please let us know if you would like to make any changes to the following scope of
services, pncing, timelines, etc.
The Cost of PSE's AMI Services
PSE is highly experienced with the AMI analysis and procurement process. PSE's process allows
us to keep our procurement services reasonable and considerably below what other larger
consulting firms may charge for comparable services. Our proposal may be customized to meet
the needs of Hutchinson Utilities.
We are looking forward to our conference call this Thursday at 10:30am to review this proposal
and answer any questions you may have. Please contact me at 608 - 268 -3504 or e-mail me at
herbstbt7a,powersystem.org if you have any questions prior to that time.
We appreciate this opportunity.
Sincerely,
Bob Herbst
Utility Automation Consultant
Hutchinson Utilities iv PSE's AMI Services
Power System Engineering, Inc.
Table of Contents
I
PSE's Understanding of Hutchinson Utilities' Needs .......................... ............................I -1
IIScope
of Work ........................................................................................ ...........................II
-1
1.
Build the Project Team, Refine Scope, and Define Project Logistics .......... ...............................
II -1
2.
Present an Introductory AMI Workshop Onsite .......................... ............................... .................
II -1
3.
Identify AMI Requirements ......................................................................... ...........•...................
II -2
4.
Evaluate Wide -Area Communications Options ...................................................... .....................
II -3
5.
Create a Request for Proposal ....................................................................... ...............................
II -3
6.
Solicit Competitive Bids and Communicate with Vendors .......................... ...............................
II -4
7.
Evaluate Vendor Responses, Facilitate Vendor Presentations ...................... .............................
..
II -5
8.
Oversee Negotiations with Selected Vendor ................................................ ............................... II -6
9.
Project Administration Tasks ........................................................................
II -6
10.
...............................
Optional Future Task: Project Management Services ................................... ............................... II -7
IIIProject
Team ....................................................... ............................... ..........................III
-1
IVWhy
PSE? .......................................................................................... ...........................IV
-1
VProject
Schedule ............................................................................. ...............................
V -1
VIProject
Costs ......................................................................................
...........................VI
-1
VII
Project Experience (partial list) ....................... ............................... ..........................
VII -1
Ilutchinson Utilities V
Power System Engineering, Inc.
Confidential, Copyrighted, and Proprietary
This document contains information confidential of Hutchinson Utilities and Power System
Engineering, Inc. (PSE). Unauthorized reproduction or dissemination of this confidential
information is strictly prohibited.
Copyright 2008 Power System Engineering, Inc.
This document includes methods, designs, and specifications that are proprietary to Power
System Engineering, Inc. Reproduction or use of any proprietary methods, designs, or
specifications in whole or in part is strictly prohibited without the prior written approval of
Power System Engineering, Inc.
NEITHER POWER SYSTEM ENGINEERING, INC. NOR HUTCHINSON UTILITIES
SHALL BE RESPONSIBLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, OR
CONSEQUENTIAL DAMAGES (INCLUDING LEGAL FEES AND COURT COSTS)
ARISING OUT OF OR CONNECTED IN ANY WAY TO THE UNAUTHORIZED USE,
MODIFICATION, OR APPLICATION OF THIS DOCUMENT OR THE PROPRIETARY
INFORMATION, METHODS, AND SPECIFICATIONS SET FORTH IN THIS DOCUMENT,
WHETHER IN WHOLE OR IN PART.
Hutchinson Utilities vi PSE's AM] Services
Power System Engineering, Inc.
PSE's Understanding of Hutchinson
Utilities' Needs
During our conference call on December 12`h, we discussed Hutchinson's current situation and
needs, highlights from this discussion are reiterated below:
• An assessment of the cost benefits of an AMI system has already been completed and
Hutchinson has decided to go forward with the procurement process.
• Three vendors have visited Hutchinson Utility's offices: Sensus, Elster, and Itron.
Information has also recently been received from Tantalus_
• Hutchinson Utilities has already released a set of questions to the vendors and has so far
received one response.
• Hutchinson desires an AMI system to serve electric and gas meters. Water is a separate
entity and may be served by a new Sensus FlexNet system.
• About 6,900 electric meters will be replaced and about 5,300 gas meters will be retained.
Meters are currently read by a 3rd party contractor who charges. $0.35 per meter.
• A wireless system is preferred, although Hutchinson Utilities is open to a hybrid system
considering that the territory includes some countryside up to about two miles out, which
may not be reachable with a wireless system.
• Hutchinson currently has: 2 substations, a SCADA system, a newly - installed Advanced
Utility Systems CIS, and a GIS system.
Hutchinson's " #1 priority" with AMI is to establish the best and most reliable communications.
Some additional drivers for a new AMI system are:
• outage notification
• disconnect/reconnect
• future Demand -Side Management and Peak Pricing programs
• potential security application (Hutchinson Utilities would also like to investigate
whether they want to enter into the alarm business. This investigation will not be part
of this scope ofservices other than asking AMI vendors if they know of other utilities
using the AMI system for security applications).
The proposed scope of work described in the next section addresses how PSE will lead the
procurement process that satisfies Hutchinson's needs.
Hutchinson Utilities I 1 Scope of Work
Power System Engineering, Inc.
II Scope of Work
The project is organized into the tasks described below. Please note that the tasks comprise our
proven AMI procurement method, but PSE is flexible. We will review these tasks with you and
discuss any suggestions or changes you might recommend.
1. Build the Project Team, Refine Scope, and Define
Project Logistics
Power System Engineering (PSE) will work with Hutchinson Utilities' project team to analyze
needs, explore technology, review previous work to date, facilitate inter - departmental
communications, track the schedule, and coordinate with all stakeholders. PSE has found that
agreeing upon assignments and defining the relationships between team members right at the
start maximizes use of internal skills and knowledge and builds upon existing work and expertise
throughout the project.
PSE recommends that the internal project team be comprised of the following: (a) Project
Executive and Project Sponsor, (b) Manager -level representatives from most departments, and
(c) potential users of the AMI system. These representatives may include: customer service
representatives, the metering "shop," a supervisor that manages the existing meter readers,
engineering, operations, customer service, billing, finance, and possibly others who will use the
new AMI tools. The various "user- groups" will primarily be involved in the requirements
gathering process. Forming a cross - departmental team is a vital component of a successful AMI
procurement project.
Key Deliverables: Refine the Scope of Work document, if required, based on Hutchinson
Utilities' input, agree on the project schedule and make plans for onsite meetings, as required.
Conduct a project kick -off team meeting (via teleconference) to define and agree on all project
logistics and project methods to maintain communications.
2. Present an Introductory AMI Workshop Onsite
Since there are so many options and decisions to be made, it can become overwhelming to define
what system would be the best fit for Hutchinson's specific needs. In fact, it can be
overwhelming at first to even define those needs. So it is important to have an overview of the
choices and a high -level understanding of how the various systems work before Hutchinson
moves forward to the needs gathering and request for proposal (RFP) development steps.
PSE will visit Hutchinson's offices fora full-day meeting: the morning session will comprise an
introductory AMI workshop, as described below, and the afternoon session will comprise an
AMI needs gathering exercise (described in Task 3, below).
Hutchinson Utilities 11 -1 Scope of Work
Power System Engineering, Inc.
PSE's workshop will be conducted via PowerPoint presentation that introduces all the various
functionality benefits of AMI. In addition, we will summarize the various AMI technologies and
offerings. The 2 -3 -hour workshop will be presented in an a.m. session, with time for a question -
and- answer session. We recommend that the entire AMI team attend the day's events.
The workshop will include
• AMR vs. AMI: Functionality and Benefits
• AMI Technologies: Power -Line Carrier (PLC) vs. Wireless
• Wireless Technology Comparisons
• High -Level Wireless Vendor Comparisons
• Overview of Wide -Area Communications (Backhaul) Options
Key Deliverables: PowerPoint presentation and discussion.
3. Identify AMI Requirements
In an afternoon onsite work session, and with a written information request, the PSE team will
uncover and define the AMI utility applications beyond simple meter - reads. With a general sense
of Hutchinson's interest in the various capabilities provided by the AMI systems, PSE will query
Hutchinson employees during various meetings regarding such issues as preference for the
scalability for time of use billing, requirements of C &I metering, Distribution Automation,
Demand Response, needs relating to the potential use of the AMI infrastructure for outage
management purposes.
As necessary, the team will gather information on the current state of various programs, systems,
and initiatives (e.g. existing systems - CIS, possible OMS, WMS, Millsoft system, financial
systems, the existing /planned communications network, possible future Load Management
programs, reliability initiatives, etc.). Such assessment and documentation of the current systems
in place ensures that significant items are brought to light, reducing the possibility of any
backtracking or costly surprises later on.
In gathering the requirements for AMI, PSE proposes to follow the approach detailed below:
1. PSE will submit a questionnaire that asks questions on the present meter reading process.
Other materials will be gathered through the questionnaire, including service territory maps,
substations, communication tower sites, branch offices, and other key assets that may
eventually be leveraged as part of an AMI system. PSE will be looking for easy -to- obtain
information to the greatest extent possible.
2. Output from both the detailed questionnaire and the telephone interview session will be used
to create a written Requirements document. This will be used for a variety of purposes: (1) to
inform the direction in the technology selection process, (2) to populate a future AMI RFP,
Hutchinson Utilities II -2 Scope of Work
Power System Engineering, Inc.
and (3) to inform the integration of the AMI systems with the existing backhaul
communications network.
Key Deliverables: Needs gathering documents, facilitation of afternoon on -site requirements -
gathering exercise.
4. Evaluate Wide -Area Communications Options
The AMI backhaul communications integration can be one of the most challenging aspects of an
AMI deployment. In making a communications technology decision, PSE will consider the
communications backhaul implications and discuss those implications with the team as
appropriate.
PSE believes that it is imperative to understand the existing field communications assets in place
as well as any planned communications programs. The steps PSE will follow relating to the
backhaul communications are as follows:
1. Gather enough information relating communications so an appropriate level of detail is
included as part of the RFP_
2. Engage Hutchinson in this discussion to determine if their communication assets will support
Hutchinson's AMI data transport needs.
3. Inquire as to other utility automation applications in place or planned that may impact the
existing or planned field communications.
Please note that this task is not an in -depth communications study. We gather enough
information in this step to inform the vendors of the wide area networking options in place to
support the collection of meter data from the field to Hutchinson's offices. PSE does offer
strategic communications studies and planning; however, this type of plan is not included in this
proposal.
Key Deliverables: A brief 2 -4 page memo describing PSE's findings.
5. Create a Request for Proposal
The RFP, expected to be about a 40- to 60 -page document, will include a minimum of the
following:
1. Contractual Terms and Conditions. At the end of the RFP process, when a vendor is selected,
this section will become part of the contract. PSE has found that creating the Contractual
Terms and Conditions as part of the RFP allows the vendors to either approve or note
exceptions during the proposal process. Following this approach saves time once the vendor
has been selected_ We assume Hutchinson's legal council will review, edit, and finalize the
PSE terms and conditions in draft form before it is finalized and issued to potential bidders.
Hutchinson Utilities 11 -3 Scope of Work
Power System Engineering, Inc.
2. Summary of the business and technical requirements. This section will ask very detailed
functionality questions regarding how the vendor's products perform a specific task. The
response expected from the vendor is a paragraph describing how a requirement is met. We
will ask that the Hutchinson project team leaders review and approve the business and
technical requirements in the draft RFP.
3. Expected system components. This section will ask the vendors to provide drawings or
diagrams of the infrastructure and describe how those drawings or diagrams compare to the
elements needed by a third - party. This section of the RFP will also discuss any integration of
systems.
4. Key performance milestones and tie to vendor billing. PSE feels strongly that milestone
payments should be made based on defined and agreed -upon expectations; i.e., successful
integration of CIS, and successful passing of a System Acceptance Test (SAT).
5. Timeline for implementation. Preferably as part of the formal RFP but defmitely prior to
vendor selection, PSE suggests that the timeline for implementation be defined. This will
help manage expectations and seek commitments during the bidding process.
6. Sample of Reports_ Even though that seeing the system screen in person is best, asking the
vendors to provide several screen shots and "click- paths" in a given process is a helpful
exercise.
7. References. The RFP will seek the names and contact information of references. Again,
including this request in the RFP saves time in later steps.
8. Cost. PSE will gather and analyze vendor costs. PSE will create a separate pricing sheet in
Excel which will ensure that all costs are normalized and that costs can be compared from
vendor -to- vendor in an "apples to apples" situation.
Key Deliverables: 40 -60 -page RFP document and additional pricing sheet tailored to
Hutchinson 's needs.
6. Solicit Competitive Bids and Communicate with
Vendors
PSE will then issue the RFP with clear instructions for completing an RFP response. PSE will
manage receipt of "Intent to Respond" forms and vendors' commitment to response.
During the time the RFP is out with vendors, PSE will address vendor questions. This includes
issuing responses to questions to all bidding parties, as well as preparing addendums should they
become necessary. This kind of continuing due - diligence ensures a fair and equal bidding
process.
Key Deliverables: Communications with vendors and Hutchinson to answer questions. Phone
calls and emails, creation and submission ofany memorandums or addendums as necessary_
Hutchinson Utilities 11-4 Scope of Work
Power System Engineering, Inc.
7. Evaluate Vendor Responses, Facilitate Vendor
Presentations
PSE will evaluate, compare, and contrast the vendors' proposals and then identify the leading
vendors based on the proposed solutions. PSE will lead the effort by:
1. Reviewing the proposals to assess requirement compliance.
2. Scoring the proposals. We look for signs of schedule- adherence, integrity, professionalism,
etc., every step of the way.
3. Reviewing the proposals for completeness.
4. Assist with reference checks, if required.
5. Comparing and contrasting each of the leading proposals, taking into account all of the subtle
variances in technological capabilities among vendors' systems.
6. Assessing the proposals from a financial standpoint.
7. Reviewing the proposed initial and lifetime costs.
PSE will prepare a memorandum that describes our analysis. Hutchinson will receive an excel
spreadsheet that comprehensively compares all qualifying bid responses. The spreadsheet
presents three main areas of analysis:
1. First, the "Vendor Advantage Analysis" compares the key attributes uncovered over the
course of the analysis, and which we understand to be of importance to Hutchinson.
2. In addition, the "Tech Comparison and Weighting" presents a detailed analysis and weighted
scoring of the technical specifications as set forth in the RFP.
3- Finally, a direct comparison of all vendors' cost estimates are compared in summary and in
detail. PSE takes great care to normalize the costs to ensure that the analysis truly compares
"apples to apples." In addition, we review the accuracy of the vendors' pricing, seek
clarifications and revisions as necessary, and to normalize the pricing for ease of comparison.
PSE has also added a major 15 -year cost calculation for each vendor.
This extensive evaluation phase involves constant communications with the AMI vendors to
ensure that all pricing is correct and to clarify responses as necessary.
Next, PSE will present the results via a conference call to Hutchinson's project team and assist
with creating a "short- list" of vendors. This may mean that, assuming the RFP is released to
three vendors (it may be more), Hutchinson is able to eliminate one of three vendors. This
decision will be made by Hutchinson's AMI team. If no vendor can be eliminated, all three
vendors will be invited to visit the offices to make a presentation.
PSE will then coordinate a "vendor day," during which the short- listed vendors will be ask to
respond to very specific questions submitted to them in advance of the vendor presentations. PSE
will create a detailed vendor day agenda, specific to each vendor, which will list, in addition to a
request for a brief overview of the system, any remaining items Hutchinson may want to discuss
Hutchinson Utilities I1-5 Scope of Work
Power System Engineering, Inc.
further with the vendor. Vendors will also address costs. PSE will coordinate these meetings and
facilitate the work sessions.
At the completion of the vendor day(s), PSE will facilitate a work session with the Hutchinson
Project team and either collectively select a vendor, define any remaining follow -up tasks to
include any additional communications with vendors_ PSE's experience with other clients has
shown that a vendor decision can often be made at the end vendor meetings.
Key Deliverables: Memorandum and analysis documents_ Conference call to review analysis.
Creation of Vendor Day Agendas, Facilitation of vendor days and follow -up work session.
8. Oversee Negotiations with Selected Vendor
With PSE's closeness to the AMI project and vendors involved, PSE proposes to assist
Hutchinson in the contracting process. PSE will work closely with the Hutchinson project
leaders, Hutchinson's contracts administrator, possible legal council of Hutchinson, and the
selected vendor.
It is assumed that no travel would be required by PSE as part of this deliverable and that PSE's
involvement at this stage is limited to the creation of a contract draft and the facilitation of
contract negotiations. In other words, PSE would not be acting as an attorney, but can take a
facilitation role with the contracting process and may be involved with further contract
negotiation if any terms and conditions are pending. PSE provides the ability to solidify the
contracting process to help manage expectations with both the vendor and Hutchinson, and to
help move the process along quickly towards deployment.
Key Deliverables: Create contract draft. Facilitate the process of establishing a contract
between Hutchinson and the selected vendor. (Hutchinson's resources would provide legal
review and approval.) PSE has allotted 2 -4 hours of time for this final step in the process.
9. Project Administration Tasks
Throughout the project, PSE will facilitate the communications between the cross - departmental
Hutchinson team and the PSE team.
1. Create and provide status reports as required.
2. Follow through and maintain communications with vendors and Hutchinson project team
members.
3. Track deliverables, timing, and budget.
I lutchinson Utilities I1 -6 Scope of Work
Power System Engineering, Inc.
10. Optional Future Task: Project Management Services
As an option, and not included in the pricing below, PSE can offer project management services
These services would includes PSE's assistance during the initial phases of the AMI system
deployment to ensure the AMI system installation gets off to a smooth start. These services
continue as long as the utility feels they are required. We have not included any costs for these
services because they vary widely by project.
We often provide services as a "gap - filler" to fill any important resource gaps. For most projects,
PSE does provide some support relating to overseeing the System Acceptance testing procedures
to ensure the vendor has delivered what they promised.
Hutchinson Utilities II -7 Scope of Work
Power System Engineering, Inc.
III Project Team
David Stampfli
Project Manager
Bob Herbst
Senior Advisor
Cynthia Studner
Project Coordinator
Jim Sharp
Communications Advisor
Kevin Louis
Solutions Advisor
Other PSE staff as needed
Hutchinson Utilities Ill 1 Project Team
Power System Engineering, Inc.
IV Why PSE?
PSE fully expects to deliver a solution that most appropriately addresses Hutchinson's AMI
needs well beyond meter reading. The AMI solution will be created by combining PSE's project
team expertise and Hutchinson's experience gained from working on similar projects with other
electrical utilities.
PSE's project team has expertise with AMI technologies, communication media technologies,
and the vendors that are necessary to address Hutchinson's applications listed below. We can
leverage work and knowledge gained from working on similar projects for other utilities.
I . Understanding of the requirements to replace manual meter reading with technology.
1. Understanding of the business process improvement presented by the AMI technology. This
involves both meter reading and non -meter reading utility improvement programs.
2_ Expertise with the product differences between the vendors
3. Expertise in the communication technologies for the backhaul of the AMI technology
especially as it relates to the substation LAN and creating the specifications for substation
communications SCADA, Direct Connect to IEDs, creation of separate VLANs by
application, selection of hardened Ethernet Switches and serial servers, testing of the
protocols and network interface expertise (UCA, DNP3, TCP/IP, 802.2, 802.11, 802.16 and
others).
4. Hands -on experience in making the applications work end -to -end, well beyond the AMI
application.
5. Utility automation improvement and metering needs for large C &I customers.
6. Senior project management experience to lead a cross - departmental team while interfacing
with all staff from Executives to entry level.
7. Internal resources to complete Rate and Economic analysis projects.
8. Field engineering expertise to understand how to develop the vision and plans to leverage the
AMI infrastructure.
9. Internal staff that has completed many hands -on related projects versus some of our
competitors that discuss what could or may be done.
10. Other functional hands -on expertise on:
• Years of experience on utility technology vendor selection.
• Specific expertise with AMI vendor functionality and capability to provide insights that
are often missed by many utilities.
• Commercial cellular services (1G, 2G, 2.5G, 3G, CDMA, GSM, and 1DEN).
Hutchinson Utilities IV -1 Why PSE?
Power System Engineering, Inc.
• Financial expertise with Economists and MBAs on our project team.
• Backbone alternatives (Telco Frame Relay, Fiber, Spread - Spectrum, Satellite, and MWR).
• Communication hardware (routers, mux, bridges, switches, and other equipment).
• Security and encryption expertise.
• Private radio systems procurement expertise (licensed and unlicensed).
Vendor Independence
PSE is 100% vendor independent with no affiliation or incentives to endorse any one vendor or
technology. Also, the project team has significant diversity of knowledge with contributions
provided by all team members and project advisors.
PSE Customer Satisfaction
One of the most important tests to predict your satisfaction is to talk with our existing clients and
ask them what experiences they have had working with PSE.
Hutchinson Utilities IV -2 Why ['SE?
Power System Engineering, Inc.
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VI Project Costs
The table below indicates fixed fee project costs per the project scope defined herein. The scope
and costs may be customized to meet Hutchinson's needs.
* The Introductory AMI Workshop and AMI requirements identification (steps 2 and 3) could
be facilitated via webinar, rather than onsite, for a savings of $3,500, for a total fixed fee
project cost of $34, 209.
Hutchinson Utilities VI -I Project Costs
Power System Engineering, Inc.
Agreement for Professional Services
,onsultant Power System Engineering Inc. Client Hutchinson Utilities
Address 2000 Engel Street Address 225 Michigan St.
Madison, WI 53713 Hutchinson, MN 55350
Date December 18, 2008 Project No. TBD_
Project Name and Location AMI System Procurement, Hutchinson MN
The following attachments, which describe the services, costs, and related items, are made part of
this Agreement: "Power System Engineering's Advanced Metering Infrastructure Services" dated
December 16. 2008
Special Conditions
he Terms and Conditions attached, when initialed by both parties, are incorporated and
jade a part of this Agreement
Offered by:
12/30/2008
signature date
VP System Desiqn and Communication
Printed name/title
Power System Engineering Inc.
Name of consulting firm
Accepted by:
YZ
signature date
MICHAEL L. KUMM 1 -28 -09
printed name title
HUTCHINSON UTILITIES COMMISSION
name of client
Terms and Conditions
Performance of Services: The Consultant shall perform the services outlined on the Agreement for Professional Services page and in the referenced
attachments for the stated fee and payment term. The following items are understood:
• The Consultant is providing a consulting service for the sole benefit of the Client and no other person or entity.
• The Client may accept or reject any recommendations of the Consultant.
• Client Management is ultimately responsible for all decisions relating to any project engagement.
• The Client will have a management level individual that is responsible for
• Overseeing any consulting services provided under this Agreement.
• Establishing and monitoring the performance of the consulting services to ensure that those services meet Client objectives;
• Making any decisions that involve management functions related to the consulting services and accept full responsibility for those
decisions;
• Evaluating the adequacy of the services performed and any findings that result.
Access to Site: Unless otherwise stated, the Consultant will have access to the site for activities necessary for the performance of the services. The
Consultant will take reasonable precautions to minimize damage due to these activities, but has not included in the fee the cost of restoration of any
resulting in damage and will not be responsible for such costs.
Billing /Payment: The Client agrees to pay the Consultant for all services performed and all costs incurred. Invoices for the Consultant's services shall
be submitted, at the Consultant's option, either upon completion of such services or on a monthly basis. Invoices shall be due and payable upon receipt.
If any invoice is not paid within 15 days, the Consultant may, without waiving any claim or right against the Client, and without liability whatsoever to the
Client, suspend or terminate the performance of services. The retainer shall be credited on the final invoice. Accounts unpaid 30 days after the invoice
date may be subject to a monthly service charge of 1.5% (or the maximum legal rate) on the unpaid balance. In the event any portion of an account
remains unpaid 60 days after the billing, the Consultant may institute collection action and the Client shall pay all costs of collection, including
reasonable attorney's fees_
Indemnification: The Client shall, to the fullest extent permitted by law, indemnify and hold harmless the Consultant, his or her officers, directors,
employees, agents and subconsultants from and against all damage, liability and cost, including reasonable attorney's fees and defense costs, arising
out of or in any way connected with the performance of the services under this Agreement, excepting only those damages, liabilities or cost attributable
to the negligence or willful misconduct of the Consultant.
Information for the Sole Use and Benefit of the Client: All opinions and conclusions of the Consultant, whether written or oral, and any plans,
specifications or other documents and services provided by the Consultant are for the sole use and benefit of the Client and are not to be provided to
any other person or entity without the prior written consent of the Consultant. Nothing contained in this Agreement shall create a contractual relationship
with or a cause of action in favor of any third party against either the Consultant or the Client.
Certifications, Guarantees and Warranties: The Consultant shall not be required to execute any document that would result in the Consultant
certifying, guaranteeing or warranting the existence of any conditions.
Consequential Damages: Notwithstanding any other provision of this Agreement, and to the fullest extent permitted by law, neither the Client nor the
Consultant, their respective officers, directors, partners, employees, contractors or subconsuttants shall be liable to the other or shall make any claim for
any incidental, indirect or consequential damages arising out of or connected in any way to the Project or to this Agreement. This mutual waiver of
consequential damages shall include, but is not limited to, loss of use, loss of business, loss of income, loss of reputation or any other consequential
damages that either party may have incurred from any cause of action including negligence, strict liability, breach of contract and breach of strict or
implied warranty. Both the Client and the Consultant shall require similar waivers of consequential damages protecting all the entities or persons named
herein in all contracts and subcontracts with others involved in this project.
Risk Allocation: In recognition of the relative risk, rewards and benefits of the project to both the Client and the Consultant, the risks have been
allocated such that the Client agrees that, to the fullest extent permitted by law, the Consultant's total liability to the Client for any and all injuries,
damages, claims, losses, expenses, or claim expenses arising out of this Agreement from any cause or causes, shall not exceed $150.000. Such
causes include, but are 1irpited to, the Consultant's negligence, errors, omissions, strict liability, breach of contract or breach of warranty.
Initialed: RASConsultantMLK Client
Ownership of Documents: All documents produced by the Consultant under this Agreement are instruments of the Consultant's professional service
and may not be used by the Client for any other purpose than intended for this project without the prior written consent of the Consultant.
Dispute Resolution: Any claims or disputes between the Client and the Consultant arising out of the services to be provided by the Consultant or out of
this Agreement shall be submitted to non - binding mediation. The Client and the Consultant agree to include a similar mediation agreement with all
contractors, subconsultants, subcontractors, suppliers and fabricators, providing for mediation as the primary method for dispute resolution among all
parties.
Termination of Services: This Agreement may be terminated at any time by either party should the other party fail to perform its obligations hereunder.
In the event of termination for any reason whatsoever, the Client shall pay the Consultant for all services rendered to the date of termination, and all
reimbursable expenses incurred prior to termination and reasonable termination expenses incurred as the result of termination.
It is agreed the above term rf conditions are incorporated into and made a part of the Agreement_
nitialed RAS Consultant IC Client
ERRORS IN BILLING
Overcharged customers will be credited on the next statement or refunded on their final
billing. Any adjustments resulting in a credit greater than three (3) months billing will be
refunded by check.
Overcharges will not be refunded for any errors exceeding two (2) years from the date
of notice by the customer.
Undercharged customers will be billed for any errors not exceeding two (2) years
from the date of notice, and will be billed on a separate invoice with an explanation of
charges.
Adopted January 22, 1987
Hutchinson Utilities Commission
Policies
Inserts with Utility Bills
Only material which applies directly to Hutchinson Utilities Commission
business may be inserted into utility monthly envelopes.
Inserts With Utility Bills
Only material which applies directly to Hutchinson Utilities Commission business may
be inserted into utility monthly envelopes, unless Hutchinson Utilities Commission
gives prior approval for other items.
Amended October 29, 2008
Pn1 1C-IFS
POLICY ON PURCHASING
State Statute 471:345
Hutchinson Utilities Commission hereby adopts a general policy on the purchasing of
equipment, supplies and services.
All purchases shall require supervisor permission. Emergency situations may require a
deviation from this policy to insure electric and /or natural gas services to the customers
of the Hutchinson Utilities. Joint purchasing of materials, supplies and services shall be
considered with other departments only when net economic benefits can be seen.
When a tie exists between low bids, preference will be given to a local supplier.
For purchases when the estimate is more than $100,000:
1. The Hutchinson Utilities Commission will request permission to advertise for bids.
2. Specifications shall be made available to all prospective bidders.
3. Bids will be opened at a public bid opening. Date will be set in the advertisement
for bids.
4. The staff will review bids and recommend to the Hutchinson Utilities Commission
to accept the lowest responsible bidder meeting specifications.
5. Hutchinson Utilities Commission will enter into a contract with the responsible
bidder.
For purchases between $15,000 $25,000 and $100,000:
1. The Hutchinson Utilities Commission staff will solicit written, informal quotations
from at least three (3) suppliers and tabulate the results.
2. Fuel purchases for electrical generation is an exception, for additional exceptions
refer to Minnesota Statutes 2003, 471.345 Uniform Municipal Contracting Law
3. Staff will recommend acceptance of the lowest responsible quote.
4. Hutchinson Utilities Commission will approve the quote.
For purchases ,GGG up to $25,000:
1. General Manager authorized to approve purchases up to $25,000.
2. For purchases of $5,000 - $25,000, the Hutchinson Utilities Commission
staff will solicit written, informal quotations from at least two (2) suppliers
and tabulate the results.
2-. 3. Staff will recommend acceptance of the lowest responsible quote to the
General Manager for approval.
For purchases up to $5,000:
Directors are authorized to approve requisitions via the WIN -STS Software System for
purchases requiring a purchase order number.
If purchase order numbers are not required each Division may use their assigned credit
card.
1. Division DirectortW44ageF will approve all item requests prior to purchasing the
item.
2. Receipts will be given to each Division DirectorWapager as items are purchased
to initial, assign appropriate account number and give a description of the item
purchased; then forward to Accounting.
3. Accounting will keep a file for each Division until monthly credit card statements
are received and reconciled.
For purchases up to $1,000:
Managers are authorized to approve requisitions via the WIN -STS System for
purchases requiring a purchase order number.
If purchase order numbers are not required, each department may use their assigned
credit card.
1. Department manager will approve all item requests prior to purchasing
item.
2. Receipts will be given to each department manager as items are
purchased to initial, assign appropriate account number and give a
description of the item purchased; then forward to accounting.
3. Accounting will keep a file for each department until monthly credit card
statements are received and reconciled.
Petty cash may be used for purchases less than $25.00.
Employees may make local purchases with prior approval from their
Director /Manager. The employee has the option of using a HUC credit card, paying
cash for the item, if less than $25.00, and being reimbursed from petty cash, or
making the purchase at a local retailer with whom we have an account established.
All receipts must to be turned in to the appropriate Director /Manager to initial, assign
appropriate account number and then forward to Accounting.
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3
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2 Underground Equipment Failure
6
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3 Weather
0
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4 Birds, Animals, Snakes, etc.
1
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0
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5
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Total
22
39
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
Winnebago
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
1/7/2009
Number of Outages (by Cause)
2007
2008
Increase
2005
2006
to City
0
0
0%
0
0
—Supply
Overhead Equipment Failure
8
3
-63%
0
4
Underground Equipment Failure
91
6
-33%
0
9
Weather
1
0
_1%
0
0
Birds, Animals, Snakes, etc.
2
1
-50%
0
0
Trees
6
5
-17%
0
2
Interference
0
0
0%
0
0
—Foreign
Human
9
5
-44%
0
5
Other
0
1
1%
0
0
Unknown
0
1
1%
0
0
Vehicle
4
0
-4%
0
0
10
9
8
7
6
5
4
3
2
1
0
Outages By Cause
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02007 ■ 2008 02005 112006
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 Availability
Customer Hours Service Demand
System Average Interruption Fr uency 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 ".
SAM =
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. Ibis 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 Customer Interruption 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
sum 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.
CAM — Z Customer Interruption Durations
Total Number of Customer Interruptions
Page 10 of 11
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I Plant Operators I
Crew Chief
Larry Hammer
Jeff Schroeder
Andrew Mielke
Jeremy Noyes
Travis Klatt
Cody Glesener
Donald Carlson
- Production
ly Blake
Maintenance
Crew Chief
Maintenance
Crew Chief
Jerry Ebert
Dale Sturges
Mechanic
Gene Wiedenroth
Tony Hand
Dave Tiffl
HUTCHINSON UTILITIES COMMISSION
Director Electric Div.
t;onstrucbon
Part -time HR
Steve Lancaster
Brenda Ewing
Manager - Electric
Manager - Technical Services
Dave Hunstad
Dan Lang
Jennifer Tramp
Electric Electric
Metering
System Control
CrewChief Crew Chief
Crew Chief
Crew Chief
Brendan Olson Corey Harmening
Bill Juaire
Lonnie Weerts
Lineman
Metering Technician
System Controller
Jeremy Schultz
Randy Abelson
James Simmons
Metering Technician
Nick Nelson
Vacant
Bruce Haugen
Jason Van Marel
Tracy Correll
Plant Electrician
Chris Rosenthal
Daniel Reardon
Jon Tharaldson
Anal. I I Energy Conserv. Adm
Acct. Coord.
Teri Hofineister
T
-Meter Reading responsibility will remain with Business Department
Jan Sifferath
Accountant
Sue Winter
Energy Conserv. Adm
Jon Guthmiller
Inventory Agent
Jason Sturges
1 Tom Kloss
Account
t;onstrucbon
Coordinator
Crew Chief
Steve Sturges
Teri Hofineister
Welder /Servicepers
Jennifer Tramp
Jeremy Carter
Justin Witte
Rodney Huls
r Tim Weber
Michael K
Accoun
Jared MarW
Purchasing Agent
Roberta Yates
Director Natural Gas Div.
John Webster
Transmission
Crew Chief
Crew chief
Jon Hombach
Meter Service
Mvron Pot in