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08-31-2009 HUCMRegular Meeting August 31, 2009 Members present: President Dwight Bordson; Vice President Robert Hantge; Secretary David Wetterling; Commissioner Donald H. Walser; General Manager Michael Kumm Members absent: Commission Craig Lenz and Attorney Marc Sebora President Bordson called the meeting to order at 3:00 p.m. GM Kumm reported that he had resolved the issues with Hutchinson resident Mr. Arle Schlecht regarding a bill resulting from the demolition of a house that was purchased by the Congregational Church. Procedures are now in place to include the demolition permits, and the process of any related billing fees, at the `one -stop shop' meetings with City. GM Kumm also reported that the AMI grant has been submitted and the opening of bids is scheduled for September 23, 2009; full occupancy agreement finalized with the new inventory building and Jason Sturges has moved into his new office; new ITRON handhelds will be used next month with HUC separating itself from City meter reading at that time. The minutes of the July 29, 2009 regular meeting were reviewed. A motion was made by Commissioner Walser, seconded by Secretary Wetterling to approve the minutes as written. Motion was unanimously carried. The July 2009 payables were discussed. A motion was made by Secretary Wetterling, seconded by Vice President Hantge to ratify the payment of bills in the amount of $2,838,018.04 (detailed listing in payables book). Motion was unanimously carried. GM Kumm presented the July 2009 financial statements /budget year -to -date. After discussion, a motion was made by Commissioner Walser, seconded by Secretary Wetterling to approve the financial statements /budget year -to -date. Motion was unanimously carried. GM Kumm presented the changes to the policies and requirements booklet, general section: terminating electric /natural gas service by customer (tabled from July 29, 2009 regular meeting). Discussion was held to change the wording for better clarity. After further discussion a motion was made by Vice President Hantge, seconded by Commissioner Walser to approve the changes to the policies and requirements booklet, general section: terminating electric /natural gas service by customer, to include the recommended changes in wording. Motion was unanimously carried. (Before and after changes attached.) GM Kumm presented the changes to the policies and requirements booklet, gas sections: terminating natural gas service by customer, and natural gas meter requirements and placement. He pointed out an additional change that did not appear in the handout. The Board recommended additional wording for better clarity. After discussion a motion was made by Vice President Hantge, seconded by Secretary Wetterling to approve the changes to the policies and requirements booklet, gas sections: terminating natural gas service by customer, and natural gas meter requirements and placement, with the two additional changes. Motion was unanimously carried. (Policy attached.) Steve Lancaster presented requisition #003694 for masonry work at downtown power plant from 4 Seasons Landscape & Lawncare. This has been rebid because the original business has closed. We will do the masonry work now and go out for quotes on the landscape portion of the project at a later date. After discussion a motion was made by Secretary Wetterling, seconded by Commissioner Walser to approve requisition #003694 for masonry work at the downtown power plant from 4 Seasons Landscape & Lawncare for $79,649.10. Motion was unanimously carried. (Requisition attached.) GM Kumm presented the changes to the parallel generation policy. This is a part of the on -going policy review. The PUC has changed the kilowatts from 20 to 40, so our policy now reflects that change. A motion was made by Commissioner Walser, seconded by Secretary Wetterling to approve the changes to our parallel generation policy. Motion was unanimously carried. (Policy attached.) Jan Sifferath discussed the Revenue Recapture Program. This is an on -line program through the state of Minnesota where we can collect payment on delinquent accounts through a customer's income tax and property tax refunds. Jan will write up a procedure for this collections process and she will track the collections. (Minnesota Revenue Fact Sheet attached.) GM Kumm reported on the following: • John Webster has been appointed to serve on the Codes and Standards Committee for the Midwest Energy Association • Dave Hunstad has been appointed to the Board of Directors for Gopher State One -Call • Mike has been appointed President Elect on the MMUA Board Division reports Gas — John Webster • Working on the distribution of gas to Airport Road • Working on the design of gas distribution to Hutch Manufacturing's new building • New Industrial Park project will have gas on September 8 • AMI questions are being answered • Ryan Ellenson will be at the State Fair with the Gopher State One -call booth • All mains are installed at Judson Woods • Working on a gas line valve from North High Drive to Judson Woods Electric — Steve Lancaster • All wire will be installed by the end of the week for the conversion project Accounting — Jared Martig • Jason Sturges has moved his office into the new inventory building — Roberta Yates will move in later • Issues with the stairs have been resolved • Working on some caulking issues Business — Jan Sifferath • Cold Weather brochures to go out in the September billing statements • Will be attending a customer service seminar in Savannah, Georgia sponsored by APPA • Open House is scheduled for October 8, 2009 from 4:00 p.m. to 7:00 p.m. • Checking into trying to sell our powerstat readers Legal update — none Unfinished Business Would like to see the power point presentation on the history of Hutchinson on HUC's web site. New Business A card of congratulations to be sent to Miles Sepelt for his work obtaining the grant on the Industrial Park. Compliments received from residents on the appearance of the downtown power plant and on the appearance of the new inventory building. There being no further business, a motion was made by Commissioner Walser, seconded by Vice President Hantge to adjourn the meeting at 3:57 p.m. Motion was unanimously carried. ATTEST: Dwight Bordson, President David Wetterling, Secretary Regular Meeting August 31, 2009 Members present: President Dwight Bordson; Vice President Robert Hantge; Secretary David Wetterling; Commissioner Donald H. Walser; General Manager Michael Kumm Members absent: Commission Craig Lenz and Attorney Marc Sebora President Bordson called the meeting to order at 3:00 p.m. GM Kumm reported that he had resolved the issues with Hutchinson resident Mr. Arle Schlecht regarding a bill resulting from the demolition of a house that was purchased by the Congregational Church. Procedures are now in place to include the demolition permits, and the process of any related billing fees, at the `one -stop shop' meetings with City. GM Kumm also reported that the AMI grant has been submitted and the opening of bids is scheduled for September 23, 2009; full occupancy agreement finalized with the new inventory building and Jason Sturges has moved into his new office; new ITRON handhelds will be used next month with HUC separating itself from City meter reading at that time. The minutes of the July 29, 2009 regular meeting were reviewed. A motion was made by Commissioner Walser, seconded by Secretary Wetterling to approve the minutes as written. Motion was unanimously carried. The July 2009 payables were discussed. A motion was made by Secretary Wetterling, seconded by Vice President Hantge to ratify the payment of bills in the amount of $2,838,018.04 (detailed listing in payables book). Motion was unanimously carried. GM Kumm presented the July 2009 financial statements /budget year -to -date. After discussion, a motion was made by Commissioner Walser, seconded by Secretary Wetterling to approve the financial statements /budget year -to -date. Motion was unanimously carried. GM Kumm presented the changes to the policies and requirements booklet, general section: terminating electric /natural gas service by customer (tabled from July 29, 2009 regular meeting). Discussion was held to change the wording for better clarity. After further discussion a motion was made by Vice President Hantge, seconded by Commissioner Walser to approve the changes to the policies and requirements booklet, general section: terminating electric /natural gas service by customer, to include the recommended changes in wording. Motion was unanimously carried. (Before and after changes attached.) GM Kumm presented the changes to the policies and requirements booklet, gas sections: terminating natural gas service by customer, and natural gas meter requirements and placement. He pointed out an additional change that did not appear in the handout. The Board recommended additional wording for better clarity. After discussion a motion was made by Vice President Hantge, seconded by Secretary Wetterling to approve the changes to the policies and requirements booklet, gas sections: terminating natural gas service by customer, and natural gas meter requirements and placement, with the two additional changes. Motion was unanimously carried. (Policy attached.) Steve Lancaster presented requisition #003694 for masonry work at downtown power plant from 4 Seasons Landscape & Lawncare. This has been rebid because the original business has closed. We will do the masonry work now and go out for quotes on the landscape portion of the project at a later date. After discussion a motion was made by Secretary Wetterling, seconded by Commissioner Walser to approve requisition #003694 for masonry work at the downtown power plant from 4 Seasons Landscape & Lawncare for $79,649.10. Motion was unanimously carried. (Requisition attached.) GM Kumm presented the changes to the parallel generation policy. This is a part of the on -going policy review. The PUC has changed the kilowatts from 20 to 40, so our policy now reflects that change. A motion was made by Commissioner Walser, seconded by Secretary Wetterling to approve the changes to our parallel generation policy. Motion was unanimously carried. (Policy attached.) Jan Sifferath discussed the Revenue Recapture Program. This is an on -line program through the state of Minnesota where we can collect payment on delinquent accounts through a customer's income tax and property tax refunds. Jan will write up a procedure for this collections process and she will track the collections. (Minnesota Revenue Fact Sheet attached.) GM Kumm reported on the following: • John Webster has been appointed to serve on the Codes and Standards Committee for the Midwest Energy Association • Dave Hunstad has been appointed to the Board of Directors for Gopher State One -Call • Mike has been appointed President Elect on the MMUA Board Division reports Gas — John Webster • Working on the distribution of gas to Airport Road • Working on the design of gas distribution to Hutch Manufacturing's new building • New Industrial Park project will have gas on September 8 • AMI questions are being answered • Ryan Ellenson will be at the State Fair with the Gopher State One -call booth • All mains are installed at Judson Woods • Working on a gas line valve from North High Drive to Judson Woods Electric — Steve Lancaster • All wire will be installed by the end of the week for the conversion project Accounting — Jared Martig • Jason Sturges has moved his office into the new inventory building — Roberta Yates will move in later • Issues with the stairs have been resolved • Working on some caulking issues Business — Jan Sifferath • Cold Weather brochures to go out in the September billing statements • Will be attending a customer service seminar in Savannah, Georgia sponsored by APPA • Open House is scheduled for October 8, 2009 from 4:00 p.m. to 7:00 p.m. • Checking into trying to sell our powerstat readers Legal update — none Unfinished Business Would like to see the power point presentation on the history of Hutchinson on RUC's web site. New Business A card of congratulations to be sent to Miles Sepelt for his work obtaining the grant on the Industrial Park. Compliments received from residents on the appearance of the downtown power plant and on the appearance of the new inventory building. There being no further business, a motion was made by Commissioner Walser, seconded by Vice President Hantge to adjourn the meeting at 3:57 p.m. Motion was unanimously carried. F� / ppi David Wetterling, Secretary 1 ATTEST: Dwi t Bo dson, President GENERAL SIDE TERMINATING ELECTRIC /NATURAL GAS SERVICE BY CUSTOMER When the utility service is shut off due to a customer's request, the electric meter will be removed and the gas meter will be turned off and locked. The electric meter socket and gas meter valve will have a blue seal placed on them. At the time a customer requests the service be turned on, utility personnel will install the electric meter and unlock the gas meter, but it will be the responsibility of the customer to have the natural gas pilot lights relit. Upon the request of a customer, utility services may be temporarily terminated and billing suspended for a specified period of time due to illness, vacation, and /or seasonal use. Temporary terminations are not charged to the customer. Please contact our customer service department for further information. A. Termination For Renters Electric and Natural Gas meters will be read and the final bill calculated during the normal billing cycle when a renter informs HUC they no longer wish to retain our services. B. Termination For Residential /Commercial Owners Electric and Natural Gas will be shut off when the property owner requests HUC to disconnect services. For continuous service, the new owner must call HUC 24 to 48 hours in advance of the requested disconnect date, and make the necessary arrangements to have the electric /natural gas services transferred into their name. This eliminates terminating services at that address. GENERAL SIDE TERMINATING ELECTRIC /NATURAL GAS SERVICE BY CUSTOMER When the utility service is shut off due to a customer's request, the electric meter will be removed and the gas meter will be turned off and locked. The electric meter socket and gas meter valve will have a blue seal placed on them. At the time a customer requests the service be turned on, utility personnel will install the electric meter and unlock the natura, gas meter valve. It is the customer's responsibility to turn on the natural gas meter valve and to light the pilot lights on all natural gas appliances, where appropriate. In the event the customer is unable to perform these tasks, it is the customer's responsibility to contact a plumbing or heating contractor to complete this work. Upon the request of a customer, utility services may be temporarily terminated and billing suspended for a specified period of time due to illness, vacation, and /or seasonal use. Temporary terminations are not charged to the customer. Please contact our customer service department for further information. A. Termination For Renters Electric and Natural Gas meters will be read and the final bill calculated the normal billinr. GyGle when a renter informs HUC they no longer wish to retain our services. B. Termination For Residential /Commercial Owners Electric and Natural Gas will be shut off when the property owner requests HUC to disconnect services. For continuous service, the new owner must call HUC 24 to 48 hours in advance of the requested disconnect date, and make the necessary arrangements to have the electric /natural gas services transferred into their name. This eliminates terminating services at that address. C. Termination for Electrical Work If a homeowner needs an electric meter disconnected to do any electrical work, HUC will disconnect/reconnect the meter at no charge to the customer. Once the work is completed, HUC will need a copy of the State Board of Electricity Certificate of Inspection, before HUC will reconnect the electric meter. TURAL GAS SECTIONS .4 Willi .. _. I I We- ^ii NATURAL GAS METER REQUIREMENTS AND PLACEMENT HUC shall furnish and install the natural gas meter at no charge to the customer. Hutchinson Utilities Commission reserves the right to specify the natural gas meter location on all installations. All meters must be located on an external wall of the building, at a distance of no less than 3 feet from fresh air intakes, windows or door openings. New construction natural gas meters must be located within 10 feet of the electric meter if HUC is providing both SP_rVl(.es_ Access to all natural gas meters shall not be obstructed. Natural gas meters shall be located in ventilated spaces readily accessible for examination, reading, replacement or necessary maintenance. Decks shall not be constructed over a natural gas meter. Natural gas meters shall not be placed where they will be subject to damage, such as adjacent to a driveway or other locations subject to vehicular traffic, URdeF a fire esGapo in public passages, where they will be subject to excessive corrosion or vibration or in areas subject to ice and snow damage. Natural gas meters shall not be installed directly beneath external stairways. Natural gas meters shall not be located where they will be subjected to extreme temperatures or sudden extreme temperature changes (e.g., air ducts, dryer vents). Minimum distances between natural gas meters to furnace intakes shall be followed per the manufacturer's specifications. Natural gas regulators shall be located at least 3 feet from any source of ignition or any source of heat that may damage the facilities. Hutchinson Utilities Commission requires a minimum of a 3 -foot clear zone in front of the natural gas meter. Reasonable care must be taken to protect all metering facilities when remodeling, roofing, painting etc. In the event of damage to the natural gas facilities, the customer shall be responsible for the cost of repairing or replacing the natural gas facilities. Conditions may exist which may require other restrictions or distances (e.g. multiple meters etc.). Modifications made to the customer's metering facilities, necessitated by customer changes, shall be performed by HUC, at the customer's expense. All natural gas service lines retired due to building demolition, overbuilding, etc shall be retired at the customer's expense. Quotes to be provided when requested by customer. Any exceptions require the approval of Hutchinson Utilities Commission prior to the start of construction. If violations or deviations are determined, the customer will be responsible for the cost of the correction. Single Family Dwellings HUC shall provide natural gas to residential customers at a delivery pressure of 7 inches of water column measured at the inlet to the natural gas meter. All residential natural gas metering facilities shall be located on the side of the home within six feet of the front building wall. Front building wall is defined as the wall nearest the street of the resident's living space. Multi - Family Dwellings /Multiple Business Establishments Delivery pressures greater than 7" of water column, for multi - family and multiple business establishments shall only be allowed by the prior approval of HUC. The customer must provide adequate over - pressure protection for all fuel lines subject to increased delivery pressure. The single metering of multiple family dwellings, apartment buildings or multiple business establishments within a single building is permitted to the extent that each building is centrally heated. Individual metering is required for all individually heated, single - family private residences and each separately heated, owned and /or operated business. Please contact HUC for specifications regarding meter facilities. Commercial /Industrial Facilities Delivery pressures greater than 7" of water column, for commercial and industrial applications, shall only be allowed by the prior approval of HUC. The customer must provide adequate over - pressure protection for all fuel lines subject to increased delivery pressure. Please contact HUC for specifications regarding meter facilities. NG I.L. O U. O _F- Fn D W z O ff�^ V! O U CO W H J_ N z U) Z H 000 oor 0 o m I O ti cn m rn x � U U) U N O YO N L O W(0 F- rn o N O N N OD }� m a ai ai m io I-- Q M z w 0 af d w > z w o cn o w m F- U CD z 1~ 3 T Co 'n T C m O -p > O 6 Q Q —0 � 0 r- rn 'wt O CF) a) to M O O o z a C o w ro a Y c r z O o 0 0 O U Cl) M ik o O o _ LA I— W F) U a Lri J N Cl) o ' F Z (O r Cl) -,t N ZQZ,�,� O,^ O,^ °O 00 o vI 2 V/ U') t.0 pl U) O O = z N N 3 N _z 222C�C' ° U2U4; I— LO s O X a, LT 0 U) W Q C-) c -° o z ` cc v W E Q J a) � U c E W C D. z aa) > o Q ° E U L`ii a N p z z a J z Y Z Cl) CD o ca Z a) O U) = C) c m W H . _ 0 o x � ca �a-X CY� Q E� 000 oor 0 o m I O ti cn m rn x � U U) U N O YO N L O W(0 F- rn o N O N N OD }� m a ai ai m io I-- Q M z w 0 af d w > z w o cn o w m F- U CD z 1~ 3 T Co 'n T C m O -p > O 6 Q Q Adopted june 28 2006 Amended August 31, 2009 Hutchinson Utilities Commission Parallel Generation (20 40 kW or less) — Net Energy Billing 1. Effective In All territories served by Hutchinson Utilities Commission. 2. Availability Available for single -phase and three -phase customers where a part or all of the electrical requirements of the customer are supplied by the customer's generating facilities, where such facilities have a total generating capability of 20 40 kW or less, where such facilities are connected in parallel with the utility and where such facilities are approved by the utility. The budget payment plan will not be available to customers with parallel generation. 3. Rate The customer shall be billed monthly on a net energy basis and shall pay the fixed charge and energy charge specified in the rate schedule under which he is served. If, in any month, the customer's bill has a credit balance of $100 or less, the amount shall be credited to subsequent bills until a debit balance is reestablished. If the credit balance is more than $100, the utility shall reimburse the customer by check upon request. Monthly credits shall be computed by taking the net excess kilowatt -hours produced times the sum of the current (P -1) Rate schedule. (the average monthly cost of wholesale power to the City of Hutchinson). 4. Meterina and Services Facilities A customer who is served under a regular rate schedule shall have any ratchet and /or other device removed from his meter to allow reverse power flow and measurement of net energy used. Customers eligible for net energy billing but with existing metering facilities equipped with ratchets or other devices preventing reverse registration (i.e. time -of -use metering facilities) may request that the utility install the necessary metering to permit such billing. 5. Customer Obligation See Sections 9 and 10. Customer -Owned Generation Systems (Greater than 20 40 kW) Effective In All territories served by Hutchinson Utilities Commission. 2. Availability Available for single -phase and three -phase customers where a part or all of the electrical requirements of the customer are supplied by the customer's generating facilities, where such facilities have a total generating capability of greater than 20 40 kW and less than or equal to 100 KW, where such facilities are connected in parallel with the utility. Customers not desiring to sell energy under this rate have the right to negotiate a buy -back rate. The energy rate indicated below is the minimum for electrical energy. Customers with generating facilities greater than 100 kW can negotiate a buy -back rate. Should the utility be unwilling to pay the minimum rate for electrical energy, the utility shall agree to transport such electrical energy to another utility that will pay such minimum rate. The utility shall recover actual costs of such transportation from the generating customer. The budget payment plan will not be available to customers with parallel generation 3. Rate Customers shall receive monthly payments for all electricity delivered to the utility and shall be billed by the utility for metering and associated billing expenses specified in the latest rates of the wholesale supplier unless the latest rates of the wholesale supplier do not properly reflect avoided costs. In such event, the Commission, upon request, may determine appropriate rates. The utility shall have on file a copy of the latest customer -owned generation system rates for its wholesale supplier. 4. Minimum Charge The monthly minimum charge paid by the customer shall be the customer charge. 5. Power Factor The customer shall operate on a net power factor of not less than 94 percent. A power factor penalty will apply if the power factor drops below 94 percent. Customer -Owned Generation Systems (Greater than 2-0 40 kW) continued 6. Negotiated Rates Customers with generation systems greater than 100 kW can negotiate a buy- back rate. Customers with generation systems greater than 20 40 kW and less than or equal to 100 kW have the right to negotiate a buy -back rate. The buy -back rate cannot be greater than the full, avoided cost. The following are the required procedure guidelines: a. The utility must respond to the customer -owned generating system within 30 days of the initial written receipt of the customer -owned generating system proposal and within 30 days of receipt of a subsequent customer - owned generating system proposal, b. The utility's rejection of the customer -owned generating system proposal must be accompanied by a counter -offer relating to the specific subject matter of the customer -owned generating system proposal, and C. If the utility is unable to respond to the customer -owned generating system proposal within 30 days it shall inform the customer -owned generating system of: 1) Specific information needed to evaluate the customer -owned generating system proposal. 2) The precise difficulty encountered in evaluating the customer - owned generating system proposal. 3) The estimated date that it will respond to the customer -owned generating system proposal. d. The Commission may become involved in the utility negotiations upon showing by either utility or the customer -owned generating system that a reasonable conclusion cannot be reached under the above guidelines. The Commission may provide a waiver to the guidelines and order new negotiation requirements so that a reasonable conclusion can be reached. e. A copy of all negotiated buy -back rates shall be given to the Commission. These rates shall not be effective until, approved by the Commission. Customer -Owned Generation Systems (Greater than 20 40 kW) continued 7. Charges for Energy Supplied by the Utility Energy supplied by the utility to the customer shall be billed in accordance with the standard applicable rate schedules of the utility. 8. Maintenance Rate A customer -owned generation facility may be billed lower demand charges for energy purchased during scheduled maintenance provided written approval is obtained in advance from the utility. Demand charges other than "Distribution Demand" shall be prorated if maintenance is scheduled such that the utility does not incur additional capacity costs. Said probation shall be demand charge times the number of authorized days of scheduled maintenance divided by the number of days in the billing period. 9. Contract Required A contract is required between the utility and the customer -owned generation facility. The contract shall specify safety, system protection, and power quality rules that generators must comply with. Contracts with customer -owned generation facilities selling energy under the standard (non- negotiated) rate have no specific term or length. Contracts with customer -owned generation facilities selling energy under a negotiated rate shall contain performance requirements and be of sufficient length to ensure the utility avoids the costs for which the customer -owned generation facility has been paid. 10. Customer Obligation a. Metering Facilities The customer shall furnish, install and wire the necessary service entrance equipment, meter sockets, meter enclosure cabinets, or meter connection cabinets that may be required by the utility to properly meter usage and sales to the utility. b. Interconnection Costs The owner of the generating facility shall be required to pay all interconnection costs, incurred by the utility. The owner shall pay said costs, including financing costs, prior to the final service connection to the Hutchinson Utilities electrical system. Customer -Owned Generation Systems (Greater than 20 40 kW) continued C. Insurance The customer shall keep in force liability insurance, of at least $300,000.00, against personal or property damage due to the installation, interconnection, and operation of its generating facility. d. Interconnection and Operation (Safety and Power Quality) Requirements Electric Service to a customer -owned electric generation installation may be disconnected for failure to comply with these requirements. 1) Interconnection of a generating facility with the utility system shall not be permitted until application has been made to and approval received from the electric utility. The utility may withhold approval only for good reason such as failure to comply with applicable utility or governmental rules or laws. The utility shall require a contract specifying reasonable technical connection and operating aspects for the parallel generating facility. 2) The utility may require that for each generating facility there is provided between the generator or generators and the utility system, a lockable load -break disconnect switch. For installations interconnected at greater 600 volts a fused cutout switch may be substituted, where practicable. The switches shall be accessible to the utility for the purpose of isolating the parallel generating facility from the utility system when necessary. 3) The utility shall require a separate distribution transformer for a customer having a generating facility where necessary, for reasons of public and employee safety or where the potential exists for the generating facility causing problems with the service of other customers. Ordinarily the requirement should not be necessary for an induction -type generator with a capacity of 5 kW or less, or other generating units of 10 kW or less that utilize line- connected inverters. 4) Where necessary, to avoid the potential for a facility causing problems with the service of other customers, the utility should limit the capacity and operating characteristics of single -phase motors. Ordinarily single -phase generators should be limited to a capacity of 10 kW or less. Customer -Owned Generation Systems (Greater than 20 40 kW) continued 5) The utility shall require that each generating facility have a system for automatically isolating the generator from the utility's system upon loss of the utility supply, unless the utility desires that the local generation be continued to supply isolated load. For synchronous and induction generators such protection against continued operation when isolated from the utility system will ordinarily consist of over - current protection, fuse or circuit breaker, plus a voltage or frequency controlled contactor which would automatically disconnect the unit whenever its output voltage or frequency drifted outside predetermined limits, such as plus or minus 10 percent of the rated values. Other suitable protective systems against abnormal voltages of frequencies may be accepted by the utility. 6) The utility shall require that the customer discontinue parallel generation operation when it so requests and the utility may isolate the generating installation from its system at times: During such times, Hutchinson Utilities Commission shall not be liable for revenue lost by the customer. a) When considered necessary to facilitate maintenance or repair of utility facilities. b) When considered necessary during system emergencies. c) When considered necessary during such times as the generating facility is operating in a hazardous manner, or is operating such that it adversely affects service to other customers or to nearby communication systems or circuits. 7) The owner of the generating facility shall be required to make the equipment available and permit entry upon the property by electric and communication utility personnel at reasonable times for the purposes of testing isolation and protective equipment, and evaluating the quality of power delivered to the utility's system; and testing to determine whether the local generating facility is the source of any electric service or communication systems problems. Customer -Owned Generation Systems (Greater than 2-0 40 kW) continued 8) The power output of the generating facility shall be maintained such that the frequency and voltage are compatible with normal utility service and do not cause that utility service to fall outside the . prescribed limits of Commission rules and other standard limitations. 9) The generating facility shall be operated so that variations from acceptable voltage levels and other service impairing disturbances do not result in adverse effects on the service or equipment of other customers, and in a manner that does not produce undesirable levels of harmonics in the utility power supply. The customer agrees to disconnect the generating facility from the HUC distribution system or reimburse HUC for the cost of necessary system modifications if operation of the generating facility causes radio, television, internet, or electrical service interference to other customers, or interference with the operation of the HUC electrical system. 10) The owner of the generating facility shall be responsible for providing protection for the owner's installation equipment and for adhering to all applicable national, state and local codes. The design and configuration of certain generating equipment such as that utilizing line- commutated inverters sometimes requires an isolation transformer as part of the generating installation for safety and for protection of generating facilities. 11) Customer agrees to locate the generating facility so as to not interfere with the HUC distribution system. Customer agrees that the installation shall be in compliance with all applicable electric codes and the generating facility will be operated only after installation has been inspected and approved by appropriate authorities. Customer agrees to obtain all required permits, building and zoning information, and applicable inspections. 12) The customer agrees to reimburse HUC for any addition, modification, or replacement of any distribution components made necessary by the customer's installation. 13) Customer agrees to effectively install grounding and provide surge arrestor protection to prevent lightning damage to HUC distribution system. Customer -Owned Generation Systems (Greater than 2-0 40 kW) continued 11. Utility Obligation a. Meterina Facilities The utility shall own and install appropriate meter to record all flows of energy necessary to bill in accordance with the charges and credits of the rate schedule. b. Notice to Communication Firms Each electric utility shall notify telephone utility and cable television firms in the area when it knows that customer -owned generating facility is to be interconnected with its system. This notification shall be as early as practicable to permit coordinated analysis and testing in advance of interconnection, if considered necessary by the electric or telephone utility or cable television firm. 12. Right to Appeal The owner of the generating facility interconnected or proposed to be interconnected with a utility system may appeal to the Commission should any requirement of the utility service rules or the required contract be considered to be excessive or unreasonable. Such appeal will be reviewed and the customer notified of the Commission's determination. Contract for Parallel Generation facilities This contract is entered into Commission (hereafter called "Utility ") and (hereafter called "customer ") RECITALS The customer has installed electric rated at located at , by Hutchinson Utilities generating facilities, consisting of kilowatts of electricity, on property The customer is prepared to generate electricity in parallel with the Utility. The customer meets the requirements of the Utilities rules on parallel generation and any technical standards for interconnection the Utility has established that are authorized by those rules. The Utility is obligated under federal and Minnesota law to interconnect with the customer and to purchase electricity offered for sale by the customer. AGREEMENTS The customer and the Utility agree: 1. The Utility will sell electricity to the customer under the rate schedule in force for the class of customer to which the customer belongs. 2. Payment per KW for Energy delivered to HUC, in Excess of Energy Used by the customer. 3. The rates for sales and purchase of electricity may change over the time this contract is in force, due to actions of the Utility. The customer and the Utility agree that sales and purchases will be made under the rates in effect each month during the time this contract is in force. 4. The customer must operate its electric generating facilities within any rules, regulations, and policies adopted by the utility, which provide reasonable technical connection and operating specifications for the customer (Hutchinson Utility Commission's rules and regulations applicable to parallel generation are attached). 5. The customer will operate its electric generating facilities so that they conform to the national, state, and local electric and safety codes, and will be responsible for the costs of conformance. 6. The customer is responsible for the actual, reasonable costs of interconnection which are estimated to be $ . The customer will pay the Utility in this way 7. The customer will give the Utility reasonable access to its property and electric generating facilities if the configuration of those facilities does not permit disconnection or testing from the Utility's side of the interconnection. If the Utility enters the customer's property, the Utility will remain responsible for its personnel. 8. The Utility may stop providing electricity to the customer during a system emergency. The Utility will not discriminate against the customer when it stops providing electricity or when it resumes providing electricity. 9. The Utility may stop purchasing electricity from the customer when necessary for the Utility to construct, install, maintain, replace, remove, investigate, or inspect equipment or facilities within its electrical system. The Utility will notify the customer before it stops purchasing electricity in this way. 10. The customer shall keep in force liability insurance, of at least $300,000.00, against personal or property damage due to the installation, interconnection, and operation of its generating facility. 11. This contract becomes effective when signed by the customer and the utility. This contract will remain in force until either the customer or the Utility gives written notice to the other that the contract is canceled. This contract will be canceled 30 days after notice is given. 12. This contract contains all the agreements made between the customer and the Utility. The customer and the Utility are not responsible for any agreements other than those stated in this contract. THE CUSTOMER AND THE UTILITY HAVE READ THIS CONTRACT AND AGREE TO BE BOUND BY ITS TERMS. AS EVIDENCE OF THEIR AGREEMENT, THEY HAVE EACH SIGHNED THIS CONTRACT BELOW ON THE DATE WRITTEN AT THE BEGINNING OF THIS CONTRACT. Customer go HUTCHINSON UTILITIES COMMISSION IE Date: Date: MINNESOTA- REVENUE Revenue recapture Collection Fact Sheet 5 Revenue recapture program The Revenue Recapture Act legislation enacted in 1980 (M.S. 270A.01 to 270A.12)created a program authorizing the Minnesota Department of Revenue to intercept —or recapture— taxpayer refunds and apply them to debts the taxpayers owe to other state agencies, the University of Minnesota and to certain local governmental units. The revenue recapture program is in addition to, and not a substitute for, any other means of collection by claimant agencies. Claimant agencies Claimant agencies include: N state agencies s the regents of the University of Minnesota s any district court of the state s any county s any city N municipal owned hospitals s a private nonprofit hospital that leases its building from the county in which it is located s any public agency responsible for child support en- forcement s any public agency responsible for the collection of court - ordered restitution s the Revenue Collection Division s a private ambulance service that is governed by statute 144E If an agency wishes to participate in the revenue recap- ture program, it must have an assigned Minnesota tax ID number that is authorize for recapture purposes only. This number is not the same number assigned for withholding or sales tax purposes. If the agency does not have a Minne- sota tax ID number for recapture purposes, call the depart- ment at 651- 556 -3037 to apply for one. Debtors A debtor is an individual person who is obligated to pay a debt to a claimant agency or is delinquent with a public agency responsible for child support enforcement. For purposes of revenue recapture, a debtor does not include businesses or corporations. Minnesota Revenue, Collection Division, St. Paul, MN 55146 Phone: 651 -556 -3037 TTY: Call 711 for Minnesota Relay Revised 7/08 www.taxes.state. mn. us Qualifying debts A debt is a person's legal obligation to pay a fixed and cer- tain amount of money to a claimant agency. The debt may be from a contractual or statutory obligation, a court order or other legal obligation. It does not need to have been reduced to judgment. To qualify for revenue recapture, the debt must be $25 or more and may include criminal fines, restitution (money due to the victim of a crime or a juvenile offense as ordered by the court), and co- payments for the appointment of a district public defender. Debts that do not qualify for revenue recapture and cannot be submitted for collection include: s medical care or hospitalization debts for which the debtor's income at the time the care was rendered did not exceed amounts provided by law (M.S. 270A.03, subd. 5 ) ® overpayments of assistance owed by current recipients of assistance s debts for which there is a written payment agree- ment between the claimant agency and the debtor that prohibits recapture and the debtor is current on the payments s debts for which the collection attempt would result in the loss of federal funds s debts for which the time period allowed by law for col- lection has expired Refunds recaptured Once a claim is filed, the following refunds and payments due the taxpayer will be intercepted: s individual income tax refunds (Form M 1) to property tax refunds (Form MIPR) N political contribution refunds (Form PCR) s lottery winnings of $600 or more s sustainable forest tax payments s awards from the joint legislative subcommittee on claims This fact sheet is intended to help you become more familiar with Minnesota tax laws and your rights and responsibilities under the laws. Nothing in this fact sheet supersedes, alters, or otherwise changes any provisions of the tax law, administrative rules, court decisions or revenue notices. Alternative formats available upon request. Claims process 1. Claimant agencies seeking collection of a debt through revenue recapture must submit information to the de- partment identifying the debtor and the debt amount. Claims may be submitted using one of these three methods: • Paper: Complete and submit Form ARC 150, Revenue Recapture Act Certification, for each claim. Substitute forms must be approved by the department prior to using. • Online: Agencies that have access to the State of Min- nesota mainframe computer system, MAXIS, CSES or MAPS can input or modify claims directly online. Call the department at 651 -556 -3037 to receive train- ing and access to the Recapture system. • Electronic transfer: Call the department at 651 -556- 3037 for specifications. A cover letter stating the name and Minnesota tax ID number of the agency, the name and phone number of the person submitting the claims, and the number of claims submitted should accompany claims submitted on paper or by electronic transfer. 3. The department enters the claim into a computer system where the information is matched to existing records. The department will notify the agency of any discrepancies. 4. When the tax returns are processed, the department will: • deduct the amount from the taxpayer's refund and is- sue a payment to the agency (one check will be issued each day to the agency for all debts offset in that day's processing) • provide information to the agency indicating the amount applied against the claim and the debtor's address listed on the tax return • notify the taxpayer of the amount setoff, provide the address of the claimant agency and advise the debtor of the right to contest the validity of the claim • update the claim with the amount offset and calculate the balance remaining. 5. Each month, the department will send agencies a Sum- mary of Offsets by Claimant Agency to aid in manage- ment of claims. 2. No later than five days after sending the claim to the 6. department, the agency must notify the debtor in writ- ing at his or her last known address. The notice must contain: • basis for the claim to the refund (including the name of any benefit program) • dates on which the debt was incurred • the agency's intention to request setoff of refunds against the debt, unless the time period allowed by law for collecting the debt has expired • the debtor's right to contest the validity of the claim at a hearing. If the notice is returned as undeliverable, or the agency has reason to believe the debtor did not receive the no- tice, the agency may ask the department to try to locate a more current address. An Inventory Report of Claims by Claimant is avail- able upon request to assist agencies in reconciling their records with claim balances on the Revenue system. It is anticipated that agencies will use this report on an annual basis. Agencies may request the report by calling the department at 651- 556 -3037. 7. The agency must notify the department within 30 days after the debt has been satisfied or reduced by at least $200. To notify the department, either complete the "Decertification or modification" section on the copy of Form ARC 150 used to file the initial claim or modify the claim online. Minnesota Revenue , Collection Division Fact Sheet 5, Revenue recapture Questions and answers Is there a fee for filing? A fee is not due when the claim is filed. If a refund is in- tercepted, a $15 fee for each claim offset will be deducted from the debtor's refund. The amount of the claim or the balance of the refund, whichever is less, will be forwarded to the agency. How long is the claim in effect? Claims are in effect until the debt is paid or canceled. Who gets priority if there is more than one claim against a debtor? If two or more qualifying debts are submitted for setoff and the total exceeds the debtor's refund, the refund will be applied to the debts in the following order: 1. debts for child support 2. payment of restitution obligations 3. health care debts 4. remaining debts in the order certified *This listing is for recapture priorities AFTER any refunds have applied to TAX DEBT. When two or more agencies have the same priority, the claim that has the oldest claim date will be paid first. If the claim date is the same, it will pay the one with the oldest claim document number first. If the debts are less than the refund amount, the difference will be issued to the taxpayer. When authorized by law, refunds can also be applied to other kinds of debt that are not revenue recapture claims. Who notifies the debtor that a claim has been filed against his or her refunds? The claimant agency notifies the debtor at the time the claim is filed, and the department notifies the debtor at the time the refund is sent to the agency. When does the department issue tax refunds? Income tax refunds are issued daily beginning approxi- mately January 15. Property tax refunds are issued begin- ning approximately August 1 for renters and September 15 for homeowners. Smaller volumes of refunds on delin- quent and amended returns are issued throughout the year. How are joint refunds handled? The department will remit the joint refund to the claim- ant agency, even if only one spouse is liable for the debt. However, if requested, the agency is required to divide the refund based on the proportionate share that each spouse contributed to the total income for that year and refund the portion belonging to the nonliable spouse. For court fines, fees, surcharges and court - ordered restitution, the notice provided by the department serves as the appropri- ate legal notice to the spouse who does not owe the debt. How can debtors contest the validity of claims? To contest the validity of the claim, the debtor must submit a written request to the claimant agency. The agency must receive the request within 45 days after it has mailed the original or corrected notice of the claim to the debtor. If the debtor claims he or she did not receive the notice from the agency, the 45 days does not begin until the debtor has received the actual notice. In these cases, the debtor has the burden of showing that notice was not received and is entitled to a hearing on the issue of notice as well as on the merits. The claimant agency must initiate a hearing no later than 30 days after receiving the debtor's request to contest the claim. The hearing must be held according to contested case procedures established in the state Administration Procedure Act. This right does not apply to issues relating to the validity of the claim that have been previously raised at a hearing or previously litigated, or issues that were not timely raised by the debtor. What information is private? Private and confidential data on individuals may be ex- changed among the department, the Taxpayer Rights Advocate, the attorney general, the claimant agency and the debtor as necessary for purposes of revenue recapture. The department may disclose to the claimant agency only the debtor's name, address, Social Secu-' ' number, the amount of the refund, and in the case of a joint refund, the name of the debtor's spouse. Data collected by the department from claims filed for revenue recapture by claimant agencies are private data on individuals. Any person employed by, or formerly employed by, a claimant agency who discloses any such private infor- mation for any other purpose is subject to civil and criminal penalties. What rules govern revenue recapture? Under Minnesota Rule 8165.0200, the department is autho- rized to investigate any complaint made against claimant agencies for not following all the requirements of the Rev- enue Recapture Act. If a claimant agency is found to be in violation of the act, even after written notice of a violation and an opportunity for a hearing has been given, the agency can be suspended from using the Revenue Recapture Act. Need additional information? If you have questions regarding adding or updating a Rev- enue Recapture Claim, call us during business hours at 651- 556 -3037 (TTY: Call 711 for Minnesota Relay), or e-mail your question to Mdor.Recapture @state.mn.us Fax: 651 -556 -5120 Or write: Minnesota Revenue Collection Division 600 North Robert St. St. Paul, MN 55146