02-01-1940 HUCMSpecial Meeting
February 1, 1940
A Special meeting of the Light & Power Commission was held
on February 1, 1940 at 7:00 P. M. at the Light Plant office.
All members were present. Supt. Strohmeier was also present.
The following resolution was introduced by R. W. Dahl, who
(0 0 (0 moved its adoption.
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N 0 RESOLUTION
CD WHEREAS the present contract between the McLeod County Co-
Cl) operative Association and the City of Hutchinson expires in September
_° E 1941, and
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C:)4- e WHEREAS it is urgent and necessary, if the Hutchinson Municipal
0o c N Light & Power Plant is to continue to serve the McLeod Cooperative
'1-0 W Power Association after expiration of the present contract, that
0 o a negotiations be entered into at this time in order that adequate
F, ch generating capacity may be made available to serve the increase in
0 Q-demand of said McLeod Cooperative Power Association at expiration
o (h � of the present contract, and
ca
o Q (n WHEREAS time being an important factor, be it further resolved
co (n E o that the following contract shall be null and void unless accepted
W Q Z band signed by the proper officials of the McLeod Pooperative Power
Association on or before February 13, 1940.
Therefore be it resolved that the following contract be
submitted to the McLeod Cooperative Power Association for their
apvreval and that the President and Secretary of the Municipal
Electric Light & Power Commission of the City of Hutchinson be and
they are hereby instructed to si n said contract on behalf of the
Light & Power Commission of the ity of Hutchinson.
CONTRACT TO FURNISH ELECTRICAL ENERGY BETWEEN THE CITY OF HUTCHINSON,
A MUNICIPAL CORPORATION, ACTING BY ITS' LIGHT & POWER COMMISSION,
AND McLEOD COOPERATIVE POWER ASSOCIATION.
• N M N N N N N I� N I�-
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This contract made and entered into this 13th day of February,
1940, by and between the Light & Power Commission of the City of Hutch -
/' inson, a Municipal Corporation Agency, as party of the first part; and
hereinafter called the producer and McLeod Cooperative Power Association,
a corporation, as party of the second part, and hereinafttbr called the
consumer.
1. For and in consideration of the sum of One dollar by each paid
to the other, the receipt of which is hereby acknowledged, and for and
in consideration of the mutual promises of the parties hereto and here-
in contained, the said producer agrees to furnish to said consumer on
and after the 2nd day of September, 1941, at the exprration of a certain
existing similar contract, such quantities of electrical energy as said
consumer shall require and the consumer agrees to take from and pay for
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all electric energy required by it for any and all purposes, from the
said producer.
2. The electric energy herein provided for shall be alternating
current of three phase, of approximately sixty cycles frequency and ap-
proximately 2300 volts which energy the producer agrees to deliver to
consumer at the substation of the saod consumer located at its present
site at the east boundary line of the City of Hutchinson.
3. Said producer further agrees to hold the said consumer free and
harmless from any and all claims for damages due to the death or personal
injury, or other claims, to the public or their employees on trans-
mission lines or other electrical equipment owned, maintained and
operated solely by said producer and the said consumer agrees to hold
the said producer free and harmless from all like claims for damages
due to death or personal injury or damages of any kind to the public ar
their employees on any lines belonging to or over which said consumer
may have control.
4. The consumer shall install its own fused disconnecting switches
or automatic oil switches same being a Dart of the consumer's substation
structure. These fuses or switches shall be such as to automatically
open the line in case of undue overload, short circuit, ground, or light-
ning discharge.
5. Consumer shall have transformers and branch lines fused or
controlled by oil switches so as to be disconnected from the main line
in case of trouble.'
6. Tree clearance and other conditions which may cause interrup-
tions, grounds, or radio interference shall, so far as reasonably pos-
sible, be avoided by both parties on lines controlled by each.
7. The consumer shall establish and enforce rules restricting its
customers in the connection and operation of equipment which may cause
surges, poor voltage regulation, or poor power factor, such rules to be
not more lenient than those of the producer, except that such rules are
not to prohibit the use of equipment approved by the Rural Electrification
Administration.
B. Consumer agrees to hold said producer free and harmless from
all liability due to interference of, or by, its lines or any line over
which it may have control, with telephone lines, except when such inter-
ference originates in equipment of Producer.
9. Said energv herein provided for shall be measured through a
watt hour meter or meters furnished, installed and maintained at the
expense of said producer. Said energy so furnished consumer shall be
measured at the producer's switchboard. Consumer shall have the privi-
lege of inspecting producer's meters at any reasonable time. Producer
agrees to maintain conductors of sufficient capacity to consumers
substation to avoid any excessive average voltage drop.
10. The consumer may, at its option and at its expense, install a
duplicate or check meter alongside that of the produeer for the purpose
of checking said producer's meter, and in the event of the failure of
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the two meters to check with each other, either party hereto shall have
the right to call upon the other for a test of one or both meters, which
test shall be made by competent disinterested party in the presence of
the representative of each of the parties hereto, and in the event of
error in meters exceeding: two (2 %) per cent, allowance shall be made by
the proper party to the other according to such error covering a period
between the date of the last previous test and the date of the test then
made; provided, however, the said period of time shall not exceed thirty
days.
The cost of all tests made by the producer unless otherwise
provided, shall be paid by the producer, the costs of all tests requested
by the consumer shall be paid by the consumer except in the event that
the producer's meter shall be found. to be -in error exceeding two per
cent (2 %) when the cost of the test shall be borne by the producer.
11. The consumer apr_ ees to pav the producer for said electric
energy at the net rates set forth in paragraph Do. 17 as recorded by
the producer's watt hour meter or meters provided for herein, on or
before the fifteenth day of the month succeeding that during which said
energy is furnished. Payments are to be made to the producer in lawful
money of the United States at Its office in the City of Hutchinson..
Minnesota, or elsewhere in the State of Minnesota as directed by the
producer on due notice to said consumr.
12. The producer agrees to use due diligence in maintaining good
and uninterrupted service; provided, however, that it shall not be
liable for any damage caused by failure to maintain such service in
whole or in part due to any cause, whatsoever.
13. Consumer agrees to use due diligence in maintaining distri-
buting circuits, transformers, switches, lightning arrestors and other
apparatus in good order and repair at all times subject to conditions
over which it has no control and agrees that its lines, transformers
and other apparatus shall be of sufficient capacity to receive and
transmit said electric energy to the end that good service may be
given to its patrons.
14. In the event said consumer shall contemplate merging, con-
solidating, or in a.ny wise to become affiliated with any other corpor-
ation, individual or partnership whereby additional electrical energy
may be required of the producer herein, said consumer agrees to consult
producer regarding said consolidation or otherwise to the end that said
consumer by entering said consolidation or otherwise shall not be
requiring of the producer energy beyond its safe capacity to produce
with its present equipment.
15. This contract shall be and remain in force for a period of
ten ,years from and after the 2nd day of September, 1941, and after said
ten year period, this contract shall continue in full force and effect
from year to year thereafter unless prior to the expiration of said ten
year period, either party hereto gives the other a written notice at
least one (1) year prior to the expiration of said ten year period of
its intention to cancel said contract on September 2, 1951. After the
termination of said ten year period, ei ther' party hereto may cancel
said contract by giving to the other a written notice that said contract
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shall terminate one year from and after the delivery of said notice.
16. Consumer agrees that it will not assign or in any manner
transfer this contract without the written consent of the producer
except that consumer may assign this contract to the United States of
America as security for any loan of money made to the said consumer by
the United States of America.
17. Payments for all electrical energy delivered by producer to
said consumer shall be based upon and determined by the total Quantity
of electrical energy sold consumer and metered at producer's switchboard
and by the consumers maximum 15 minute average demand in excess of
500 KW during; any month, and the rates and charges for such electrical
energy shall be according to the following schedule, to -wit;
First 25,000 KWH per month @ .0175
Next 50,000 KWH " it @ •0150
For all KWH in excess of 75,000 per mo. .009
For each KW of maximum 15 minute average demand
during month in excess of 500 MY 1.00
18. The within contract price shall be based on fuel oil satis-
factory to the producer delivered in the producer's storage tanks at a
cost of not less than $4.50 por more than $5.50 per 100 gallons. Should
the cost of such fuel rise above $5.50 per 100 gallons or decline to
below x$4.50 per 100 gallons as an average for the billing period involved
then the price per Kilowatt hour shall be adjusted in accordance with such
rise or decline by 1 /10 of 1 mill (4.0001) for each twelve and one half
cents ($.121) of rise above 05.50 per 100 gallons or decline below
$4.50 per 100 gallons.
19. In the event of a mojor increase or decrease in general price
and wage levels of such a substantial character as materially and sub-
stantially to change the cost basis upon which the wholesale rates fixed
by this contract are predicated, the parties hereto agree to an adjust-
ment of such rates. Should the cost of living index for the United
States as a whole compiled by the Department of Labor of the United States
show a decrease for aneriod of six consecutive calendar months, or for
any month in said period if index figures are not reported for each
month thereof, of thirty (30) per cent or more under the index figures
for the index period including the month in which th1hs contract is
signed, or any month in said period if index figures are not reported
for each month thereof, Consumer and Producer agree to such a reduction
in rates as will conform to the decreased costs of electricity supply,
and should such index figures show a 30 percent or more increase Sir
the same period or month as the case may be, Producer sand Consumer agree
to such an increase in rates as will conform to the increased costs of
electricity supply.
20. The parties hereto agree that no breach or failure on the
part of the consumer to perform any of the terms and conditions by it
to be performed under this agreement, shall abeolve or discharge the
consumer from any of the terms of this contract, except with the written
consent of the producer.
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21. In the event of the failure of the consumer to pay within the
times herein stated the amount due shall bear interest at the rate of 6%
per annum, and the producer shall have the right at its option, after a
15 day written notice to discontinue furnishing; electrical energy to
said consumer.
22. The Consumer reserves the right to purchase electrical
energy elsewhere if the producer is not at any time able to or does
not, furnish all the electrical energy required by the consumer for
any consecutive 15 day period and the consumer shall have the right
and option of terminating; the contract.
23. This contract shall be binding upon both parties hereto,
their successors or assigns.
24. This contract shall not be binding upon'the parties herein
until signed by the proper authorities, and annroved by the Rural
Electrification Administration and by the electorate of the City of
Hutchinson in accordance with the laws of the said City of Hutchinson.
25. The parties hereto agree that this is not, in any respect, a
partnership or joint venture and that among other things, this contract
provides for the conditions under which the producer will furnish energy
to the consumer and that the parties are wholly separate and distinct
bodies.
26. Any and all contracts between the parties in conflict with
this one are in all things cancelled and terminated as of the date this
contract becomes effective.
WITNESS OUR HAND the day and year first above written.
In the Presence of LIGHT & POWER COMMISSION OF THE
CITY OF HUTCHINSON, a '"unicipal
Corporation Agency
In the Presence of:
By; Pres .
By: Secy.
McLEOD COOPERATIVE POWER ASSOCIATION
a corporation
By: Pres.
By: Secy.
`� otion seconded b- Commissioner Thompson.
.Upon roll call the vote was unanimous and President Sheppard de-
clared the resolution duly adopted.
There being no further business the meeting adjourned.
Attest. op, • - - -- _ ecretary