03-29-2017 HUCCPMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, March 29, 2017
Call to order — 3:00 p.m.
President Monty Morrow called the meeting to order. Members present: President
Monty Morrow; Vice President Anthony Hanson; Secretary Mark Girard; Commissioner
Robert Wendorff; Commissioner Don Martinez; General Manager Jeremy Carter;
Attorney Marc Sebora.
1. Conflict of Interest
None
2. Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
A motion was made by Commissioner Martinez, seconded by Commissioner
Wendorff to approve the Consent Agenda. Motion was unanimously carried.
3. Approve Financial Statements
Jared Martig presented the financial statements. After discussion, a motion was
made by Secretary Girard, seconded by Vice President Hanson to approve the
financial statements. Motion was unanimously carried.
4. Open Forum
5. Communication
a. City Administrator — Matthew Jaunich
i. It is looking to be a busy construction year.
ii. Speaking with State legislation regarding small cell regulation.
iii. In process of signing an agreement for the proposed hotel site.
b. Divisions
i. Randy Blake —
1. Working on the Unit 8 excitation project.
ii. Jared Martig -
1. There will be a note on customer's bills stating that HUC will not be
accepting payments at end of month as we go through a software
conversion. The new online payment vendor will be going live with the
new software.
iii. John Webster -
1. Nothing to report.
iv. Dave Hunstad -
1. Working on spring projects.
1
v. Dan Lang -
1. Busy preparing for the Unit 1 valve project.
2. Working on future generation plans with Jeremy Carter and Marc
Sebora.
c. Legal - Attorney Sebora
i. Nothing to report.
d. General Manager - Jeremy Carter
i. Clean Power Plan stakeholders meeting is taking place this Friday.
ii. Tracking updates on the legislative bills.
iii. Working on Units 6 and 7 project consultant contract.
6. Policies
a. Review Policies
i. Sealing of Meters - Electric
ii. Meter Testing - Electric
iii. Right -of -Way Clearing
iv. Layoffs
v. Voluntary Leave of Absence
No changes were recommended at this time.
b. Approve Changes
i. Electric Meter Placement
ii. Promotions and Transfers
The changes made were for clarification.
After discussion, a motion was made by Commissioner Martinez, seconded
by Secretary Girard to approve the changes to the Electric Meter Placement
and Promotions and Transfers policies. Motion was unanimously carried.
(Changes attached.)
7. Unfinished Business
a. Update on Pack Gas Discussions
Attorney Sebora talked with New Ulm's city attorney. New Ulm is looking to
settle the pack gas with HUC. Sebora requested New Ulm send HUC a draft
settlement document.
8. New Business
a. Initial Discussion and Information on a Community Solar Garden
Dave Hunstad presented information on a proposed community solar garden in
Hutchinson explaining the types of models available, the approximate costs
associated with building a solar garden (excluding property cost) and the
approximate yearly savings to the customer. (Presentation attached.)
b. Update on Reliability and System Improvement (RP3) Program
2
Dave Hunstad presented an overview of HUC's Reliability and System
Improvement Program (RP3). Hunstad explained HUC has been awarded the
American Public Power Association's RP3 designation since 2010 based on the
criteria of safety, workforce development, reliability and system improvement.
HUC has been installing underground conductor since the early 70's.
Hunstad discussed factors considered in the decision to replace old conductor,
what conductor has been replaced to date and what remains to be replaced.
c. 2016 Review of Conservation Improvement Program (CIP)
Nick Nelson, HUC Energy Conservation Administrator, gave a presentation on
the 2016 Conservation Improvement Program. (Presentation attached.)
d. Approval of Request for Proposal for the 2017 Rate Study
GM Carter presented the 2017 rate study request for proposal. A motion was
made by Secretary Girard, seconded by Vice President Hanson. Motion was
unanimously carried. (Request for Proposal attached.)
e. Approve 2017 Rate Study Committee
GM Carter, Jared Martig, and John Webster volunteered to be on the 2017
Rate Study Committee. GM Carter requested the presence of two
commissioners on the committee as well.
A motion was made by Vice President Hanson, seconded by Secretary Girard
to appoint Commissioner Wendorff and Commissioner Martinez as members of
the 2017 Rate Study Committee. Motion was unanimously carried.
f. Approve Charge Offs
Jared Martig presented the 2017 charge-offs for approval. A motion was made
by Vice President Hanson, seconded by Commissioner Wendorff to approve
the 2017 charge-offs. Motion was unanimously carried. (Charge-offs attached.)
9. Adjourn
There being no further business, a motion was made by Commissioner Martinez,
seconded by Secretary Girard to adjourn the meeting at 4:18 p.m. Motion was
unanimously carried.
ATTEST:
Monty Morr w, President
3
M rk Girard, Secretary
Electric Meter Placement
HUC reserves the right to specify the electric meter location on all installations.
Electric service lines and meter housing are the property of the home/business owner.
Meters may be relocated to a location agreed upon by HUC. The customer will be
responsible for all costs involved in relocating these facilities.
All meters must be located on an external wall. New construction electric meters must
be located within 10 feet of the natural gas meter if HUC is providing both services.
Electric meters shall be accessible at all times for disconnection, examination, reading,
replacement or necessary maintenance. Electric meters not accessible are subject to
disconnection and will need to be moved to a location agreed upona rpp oved by HUC, at
the home/business owner's expense.
HUC requires a minimum of a 3 -foot clear zone in front of the electric meter.
Reasonable care must be taken to protect all metering facilities when remodeling,
roofing, painting, etc. In the event of damage to the electric facilities, the customer shall
be responsible for the cost of repairing or replacing the electric facilities.
Conditions may exist which may require other restrictions or distances (e.g. multiple
meters or commercial/industrial).
Any exceptions require the approval of HUC 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
All residential electric metering facilities shall be located on the side of the home within
6 feet of the front building wall and 60 inches from finished grade. Front building wall is
defined as the wall nearest the street of the resident's living space.
Multi -Family Dwellings/Multiple Business Establishments
All HUC electric meters must be located on the exterior wall of the building. Individual
metering is required for each single-family private residence contained in a multi -family
dwelling and each separately owned and/or operated business. In addition, if required, a
"house meter" shall also be installed in these establishments.
Commercial or Industrial
All commercial and industrial electric meters must be located outside. If remodeling is
done on the premises, which would cause the meter to be located inside, the owner, at
owner's expense, must relocate the meter to the outside to a location agreed upon by
HUC.
Exempt
Promotions and Transfers
IIUC encourages individual advancement by providing opportunities liar promotion and transfer
as positions become available. Job vacancies shall be posted ten (1 U) working days. Employees
desiring to be considered for the position must provide a letter of interest to the appropriate stall'
person by the deadline stated on the postin".
All promoted employees shall serve a six (6) month probationary period during which tirne the
promoted employee may be placed back in the employee's previous job classification
hOs111o.11.1" ;1\u1l1h1C and at the sole discretion olthe Staff Personnel. Without loss ol'seniority.
We enaOurage employees to discuss their career plans and goals with their Director or Manager.
Non -Exempt
Promotions and Transfers
HLIC encouraoes individual advancement by providing opportunities for promotion and transfer
as positions become available. Job vacancies shall be posted ten ( l(.)) working days. l=mployees
desiring to be considered for the position must provide a letter of interest to the appropriate stall'
person by the deadline stated on the posting.
All promoted employees shall serve a six (G) month probationary period dUring which tine the
promoted employee may be placed back in the employee's prevwl.is job classification il' _i
INIS1ti�1i1_i _;i� ail;ibIC and at the sole discretion of the stalt Personnel. Without loss of'. eniorit\.
\ e encourage employees to discuss their career plans and goals with their Director or N•lanager.
What is Community Solar
A locally owned solar array where
participating customers can receive the
benefits of renewable energy without the
expense of ownership.
4/3/2017
1
Community Solar
Utility Model
Community Model (Solar Garden)
Utility / Community Model
Utility Model
HUC sponsor's a project where the costs
are shared by all customers through the
current rate structure.
Local solar project owned by HUC
Purchase Power Agreement to purchase
power from a locally developed project
4/3/2017
2
Community Model
(Solar Garden)
The costs of the project are paid for by only
the customers who want to participate in the
project.
HUC customers sign up to purchase the
output from one or more of the solar panels
for the life of the project which is typically 20
years.
Once all of the panels have been signed for,
the project will be built.
Utility/Community Model
HUC pays for and installs the initial project.
HUC customers can at anytime sign up to
purchase the output from one or more of the
solar panels.
Once all of the output has been purchased,
HUC will determine the need to add on to
the project.
4/3/2017
3
40 KW Solar Array
Cost for a 40KW array
How many solar panels would be available
Average energy produced per panel
o Cost to customer to lease a single panel
Possible next steps
Survey our customers
Determine what model to follow
Find a location
What level should HUC participate
4/3/2017
0
Municipal Solar Gardens
What's happening in Minnesota
Majority of solar gardens are being installed
by Investor owned Utilities and Cooperatives
Cooperatives (15)
Investor Owned Utilities (3)
Municipal Utilities (1)
Moorhead Public Service
Program Design
Pay as you go program
Pay up front program
4/3/2017
61
Hutchinson li a
VMy Do We Have CII
awareness and adoption of energy-efficient
Save utilities money on infrastructure cost.
Decrease carbon dioxide emissions.
Fullfill Minnesota State requirement of all utilities to offer energy
- -- •••--..».r»... J, .+..+ p........w....a — yavoo vl.,caauuy ac VcALUcQ aavau
the sale of gas and 1.5 percent of its gross operating revenues from
the sale of electricity, excluding gross operating revenues fro
electric and gas service provided in the state to large electr
customer facilities.
Each individual utility and association shall have an annual energy'
savings goal equivalent to 1.5 percent of gross annual retail energy
sales unless modified by the commissioner under paragraph (d). TY
savings goals must be calculated based on the most recent three-
year weather -normalized average. A utility or association may elect
to carry forward energy savings in excess of 1.5 percent for a year t
the succeeding 3 calendar years, except that savings from electric
utility infrastructure projects allowed under paragraph (d) may be
carried forward for 5 years. A particular energy savings can be use+
only for one year's goal.
2016 programs are tailored to empHINITM
most efficient energy upgrades, and allow fc
larger energy return per rebate.
i.
Rebate
,,
Residentia
s
'" ee a' jus a in
or er o give
i
better ratio
of incentive
to product cost,"'"'''
Rebates
for commercial
and industrial
through
a prescriptive
program, and a custom
rebate program.
Greater
emphasis on
commercial/industrial
lighting, HVAC,
1'
refrigeration,
specialized
equipment and
motors and controls.
Commercial/industr
' s
$300/kW
saved rat
2016 CIP Gas -'Coal
in
- Commercial Rate Clas
$111,294.86
Usage - Industri
$55,624.13
1,521,8
346.75
82 mcf, }
ate Ulass
1,702,963.0 kWh
116 kW
1,606 mcf
Low Income Weatherizatio
Low Income will be handled by United Community Action Partnership
provide services under the Federal Department of Energy's
"Weatherization Assistance Program", and "Energy Star Appliance,,�
HUC will work with Habitat for Humanity in assisting them with "Enerl
Star" appliances and weatherization on housing projects along
Hutchinson HRA. 4611
The Low Income Agencies are to provide a comprehensive
the energy measures implemented for each residence.
ff.]
Continue to build and maintain a positive relationship with
RUC's customers and the community.
=1JY -
Continue to inform HUCs customers of our activities and
Improve public rel,111*111:11111,1:
public awareness. A:
cs -
1) Education (ads, radio spots, articles, presentations, and energy
conservation tips)
2) Have customers use HUCs website to get information and rebal
applications.
3) Contractors play a vital role also with informing customers of
rebate options.
Summar
evo%"'t- tHINs\
\Tl L 17 1 ti000lr
REQUEST FOR PROPOSAL
COST OF SERVICE AND
RATE DESIGN STUDY
Hutchinson Utilities Commission
Hutchinson, MN
Hutchinson Utilities Commission
19; Michivun Street SE
Hutchinson. %MN 55350-1905
TABLE OF CONTENTS
PROJECTSUMMARY................................................................................................2
PROJECTBACKGROUND.........................................................................................2
SCOPEOF WORK.....................................................................................................3
COSTOF SERVICE STUDY......................................................................................3
RATEDESIGN STUDY.............................................................................................4
PROJECTTIMELINE.................................................................................................6
CONSULTANT SELECTION PROCESS......................................................................7
STATEMENTS OF QUALIFICATIONS.......................................................................7
SUBMITTAL INSTRUCTIONS AND DEADLINE........................................................9
SELECTIONCRITERIA.............................................................................................9
PROPOSER'S COSTS...............................................................................................9
INQUIRIES.............................................................................................................10
KEYPERSONNEL....................................................................................................10
APPENDIX A: 2017 RATE SCHEDULE..................................................................11
1
PROJECT SUMMARY
The Hutchinson Utilities Commission (HUC) is soliciting a Request for Proposals from
consulting firms to conduct a Cost of Service and Rate Study for the Electric Utilities
and Gas Utilities. Firms should quote the Electric and Gas study separately. If
a single firm can provide both Utility study's a combined cost should also
be provided. This Request for Proposal will consider the following:
• Existing electric and gas rates
• Existing operations and maintenance costs
• Existing bond debt service costs
• Existing depreciation costs and calculations
• Reviewing and evaluating future 0&M costs
• Current and future Capital Improvement Plans
• Reviewing future bonding costs
• Recommending alternative rate structures to fund necessary
expenditures
• Functionalization of costs into unbundled cost categories
• Provide comparison of rates to like communities
• Timeline for potential rate implementation
PROJECT BACKGROUND
The Electric and Gas cost of service study followed with a rate study analysis will consist
of a comprehensive evaluation of the current operation and maintenance costs, capital
improvement costs, existing debt service costs, depreciation as well as future O&M, and
future capital and debt service costs for the Utility. It will evaluate the existing rates
and rate structures by customer class and propose the addition or modification of fees
to gain full cost recovery for services and establish fair and equitable rates to ensure
revenue sufficiency, stability, and sustainability. It will also review customer
classifications and make any recommendations for redefining customer classifications or
modifying the rates or rate structures between the Electric and Gas Divisions.
The goal of the study is to provide for a rate structure to meet the financial
requirements of the Utility while maintaining competitive rates for our residential,
commercial, and industrial customer classes. At the end of 2016, the Utility had 7,030
electric customers and 5,543 gas customers. The most recent Electric & Gas study was
completed in 2012 based on 2010 test data.
2
SCOPE OF WORK
The Hutchinson Utilities Commission currently relies on load forecast to develop HUC's
forecast of sales and revenue. The Cost of Service and Rate Study analysis will serve as
a guide for the Hutchinson Utilities Commission (HUC) in establishing adequate cash
flow and reserves to fund the Electric and Gas Divisions over the next five years. The
selected firm(s) will be asked to work closely with HUC staff to complete the following
general categories of tasks. It is expected that the results of the Cost of Service/Rate
Study will form the basis of a potential on-going rate structure plan for the Electric and
Gas Divisions.
COST OF SERVICE STUDY
HUC desires to ensure, to the extent practical, recovery from each customer the cost of
providing service to that customer. The cost of service includes recovery of all operating
costs and amounts necessary to maintain reasonable operating reserves after funding
operations, debt service, and capital projects. Furthermore, HUC desires to ensure that
customer classifications are appropriate.
The cost of service study will define and separate fixed and variable costs. The study
should identify costs to be allocated across all customer classes and those costs that are
specific to a class. In determining actual cost of providing electric and gas service to
each customer class, traditional cost of service and rate setting principles and
approaches should be employed such that HUC can ensure that class rate requirements
are equitable.
Planning Criteria (Tasks):
a. Review financial history, including revenues and expenses,
depreciation, and current rate and fee structure
b. Review proposed five year capital improvement plan and total
projected project costs
c. Develop requisite Revenue Requirement analysis of test period system
revenue and expenses as the foundation of the cost of service class
analysis
d. Identify annual and peak requirements and usage by customer class
e. Identify current electric and gas load and project future loads based on
anticipated changes in the community
f. Examine customer database and review current customer
classifications
g. Identify largest users and determine if users are being charged under
the appropriate rate schedule
h. Review current transmission delivery and gas and electric charges
i. Review current fixed and variable energy and demand charges
C
j. Review the existing and future debt service requirements to determine
the level of cash flow needed to meet all current and future bonding
requirements
k. If applicable, review and recommend adjustments to the power cost
adjustment (pca) or fuel cost adjustment (fca) factor(s)
Reporting: The consultant is to present the findings and conclusions of each
task and resulting recommendations in the cost of service final report in a clear
and concise manner. A written report is required and periodic presentation to
management. A summary presentation to the Board of Commissioners will be
requested during a scheduled meeting or workshop.
RATE DESIGN STUDY
HUC seeks to ensure utility rate(s) cover the true cost of providing electrical and gas
service to customers. This includes but is not limited to: commodity and transmission
purchases, O & M and equipment repair and replacement costs; maintaining
appropriate working capital and cash balances as well as meeting debt service
requirements, and capital improvement needs. In doing so, the proposed rate/fee
structure shall ensure an equitable treatment of all charges on the current and future
users.
Rate Design Investigation: Utility rate modeling, and associated long-range
forecasting of revenue and expenses, necessitates careful scrutiny of available data
upon which a study is predicated so that the model can be implemented with
confidence and with reasonable certainty of fairness and equity. Evaluation of accepted
policies, practices and procedures to ensure model reliability, predictability and rate
stability over the long term is essential for model usefulness. Accordingly, the
Consultant shall meet with HUC staff to review and discuss available documentation
including, but not limited to, Utility Billing records, historical budget documents and
audit reports, resolutions, policies, operation and maintenance practices.
Evaluation: Specifically, the Consultant shall review, analyze, validate the
reasonableness, and recommend changes where appropriate for the following:
• Methodologies of fee structure, rates and charges
• Utility Repair/Replacement Funding Methodology, considering long-term
capital improvement needs, debt service opportunities and associated
funding sources/levels
Rate Design Study to Include:
a. Analyze and discuss impact of existing and future capital improvements
b. Assess revenue needs for the next five year planning period (2018-2022),
to include adequate coverage for operations and maintenance, capital
projects and program activities and debt service
12
c. Analyze existing rate and fee structure and recommend alternatives based
on findings
d. Examine current user classes and current rate approaches
e. Consultant will advise HUC on industry -accepted methodologies for
allocating costs to various customer classes and provide a breakdown of
these expenses and show how they relate to providing electric and gas
services
f. Evaluate existing rate structure with regard to changing patterns of
consumption, changes in customer base, annual revenue from rates, price
elasticity of consumption, demands on rate revenue (from Cost of Service
Study) and the effects of conservation on annual revenues and future
power resource needs
g. Evaluate current Natural Gas transportation rates across HUC's
transmission and distribution system for appropriate cost recovery and
make recommendations for modifications, if appropriate
h. Examine adequacy of reserves for operating revenues and capital projects
to determine sufficient levels to offset low consumption/revenue years
while also reducing spikes in annual rate increases
i. Examine HUC's use of Debt financing for capital improvements and make
recommendations related to its uses and limitations relative to maintaining
a proper balance for debt coverage and rate stabilization over this 5 year
period
j. Consultant shall review and if applicable propose rate schedules on the
basic premise that each customer should be classified and served under a
schedule that will cover all costs of that customer's service plus return a
reasonable margin for proper operating reserves, capital improvements,
debt service coverage, adequate inventories, and contributions to general
city government. New rate schedules must classify each customer into the
fewest possible reasonable classifications.
k. For proposed rate schedules, Consultant shall provide sampling of a
minimum of three (3) customers per classification showing the difference
of charges between existing and proposed rates. The Consultant shall
show a sampling of data for one calendar year by month for each
customer.
I. Consultant shall provide a comparison of current and alternative HUC
rates to similar size communities
m. Any preferences in long-term versus short-term rate benefits
Reporting: The Consultant is to present the findings and conclusions of the tasks in
the rate study final report in a clear and concise manner. The report should include:
• detailed recommendations for changes, if any, to current practices and/or
procedures
• a schedule for timely and coordinated execution of all essential aspects of
the report
• a written report supporting the recommendations is required and
presentation to management
5
• a summary presentation to the Board of Commissioners will be requested
during a scheduled meeting or workshop
• material to support HUC rate hearings
Deliverables
The Consultant shall prepare a draft technical document for HUC to review summarizing
study process, explaining methodologies used, final results, and recommendations.
After draft review by Utility staff, the Consultant will submit the final technical document
to staff and present to the Commission. The Consultant shall provide an editable excel
worksheet file to assist Hutchinson Utilities in determining future rate adjustments.
The Consultant either via attendance or conference call will attend one kickoff meeting
and at least one interim meeting with staff to discuss the data collection requirements
and preliminary rate structure. The Consultant will present the final rate structure at
one Commission meeting. If requested, the Consultant shall be prepared to
assist HUC in implementing any new or revised rate schedules, to include
attendance at several anticipated rate hearings.
PROJECT TIMELINE
Development of the Electric & Gas Cost of Service and Rate Study is intended to begin
shortly after the consulting firm(s) is selected. It is anticipated that the assessment will
proceed through the summer and conclude by fall of 2017.
Anticipated Consultant Selection Schedule:
Distribute Request for Proposal
Request for Proposal Response Due
Proposal Awarded by HUC
Start of Cost of Service & Rate Study
Initial Kick Off meeting for data collection
Completion of Study and Staff Review
Final Report Submitted
Board Presentation
L
April 3rd, 2017
May 1St, 2017
May 17th, 2017
June 5th, 2017
June 5th _ 9th, 2017
October 6th, 2017
October 16th, 2017
October 25th, 2017
CONSULTANT SELECTION PROCESS
The Hutchinson Utilities Commission has established a sub -committee of utility
management staff and commissioners that will be involved throughout the entire
selection process.
HUC shall be the sole and exclusive judge of quality and compliance with Proposal
specifications in any of the matters pertaining to this RFP. HUC reserves the right to
award the contract in any manner it deems to be in the best interest of the Utilities.
All Proposal information will be evaluated according to the criteria listed herein, and the
firm(s) selected will be chosen on their apparent ability to best meet the overall
expectations of the Hutchinson Utilities Commission.
By submitting an RFP submission and participating in the process as outlined in this
document, Respondents expressly agree that no contract of any kind is formed under,
or arises from, this RFP and that no legal obligations will arise. HUC will have no
obligation to enter into negotiations, or to contract, with a Respondent, even though
one or all of the Respondents are determined to be responsible and qualified, and the
proposals are determined to be responsive.
If HUC proceeds to request a more detailed Proposal from Respondents, who are
determined to be qualified under the RFP process, HUC will have no obligation to award
a Contract where: (a) One submission is received; or (b) In the judgement of HUC, the
interests of HUC would best be served by not entering into a Contract.
Once a contract has been approved by the Hutchinson Utilities Commission, an
authorization to proceed will be issued for the project. No work may begin until an
authorization to proceed has been issued. Note that all materials received by
Hutchinson Utilities Commission become "public records" and will be made
available for review to any person upon request.
STATEMENT OF QUALIFICATIONS CONTENTS
The Statement of Qualifications (SOQs) will form the basis of selecting the firms that
will be reviewed by the sub -committee.
The Statement of Qualifications should include the following components. When
submitting their SOQ, firms are asked to provide the materials in the order listed below.
SUBMITTING FIRMS ARE RESPONSIBLE FOR REVIEWING AND UNDERSTANDING THE
REQUIREMENTS OF THIS SOLICITATION. Careful attention must be given to ensure
that all requested items contained in this RFP are included in the submittal and sections
comply with applicable page limits.
7
1. Cover Letter. A cover letter is required, stating the firm's interest in
being considered specifically for either the Electric or Gas project or a
combined project of both utilities. The letter should clearly identify the
main point of contact for the submitting firm, address, telephone number, fax
number, and email address
2. General Profile. A one-page general profile of the firm is required. The profile
should describe the general nature of services provided by the firm, the location
of main and branch offices and the number of years the firm has provided
services similar to those requested by this RFP. Any sub -consultants or
partnering firms which are proposed to be a part of the project team must be
identified.
3. Key Personnel. A one-page summary is required that includes the names of the
key personnel to be involved in preparing the Cost of Service/Rate Study, along
with a brief summary of their areas of expertise and their intended role in the
project. (Resumes may be appended to the submittal but cannot substitute for
the required summary page.) Please indicate those persons possessing the
licenses and certifications necessary to perform the type of work being
requested.
4. References. A listing of three to five references, including contact names and
telephone numbers for projects of similar size and scope performed by the key
personnel listed above. In addition, provide a current client list including
jurisdiction name, contact name and telephone number, and length of
engagement. Ideally, this list will include public utility electric & gas operations
and will include projects that involved an evaluation of existing rates, capital
plans, debt service coverage, long range capital funding, O&M cost review and
evaluation, and equitable cost of service cost allocations. Particular emphasis
should be placed on innovative, cost effective rate making solutions.
5. Multiple Firms. For Statements of Qualifications that involve multiple firms
submitting as a single project team, provide a maximum two-page summary of
the roles each firm will play and the project management approach that will be
used to provide seamless delivery of the end product.
6. Estimate of Resources. Based on the firm's understanding of the scope of work
required, provide a maximum two-page preliminary estimate of the firm's
resources that could be dedicated to the project. This can be in a form of the
firm's choosing but should clearly convey a sense of the amount of effort and
resources the firm believes will be required for the data assessment phase of the
project. A statement of availability should also be included that confirms that
these resources can be committed to allow the work to progress within the
Project Timeline described earlier. If a different timeline is needed, please
specify. Submitting a fee proposal is required at this step.
3
7. Supplemental Information. Firms are encouraged to submit any additional or
supplemental information that they believe may be important to the Utility's
selection team when determining the best firm for our process. Please discuss
any critical assumptions, extenuating circumstances or other factors that may be
critical to understanding the submitted qualifications. There is no page limit for
this supplemental information.
Any requests for clarification on the submittal requirements or review process must be
received by the Public Utilities no less than three days prior to the submission deadline
listed below.
SUBMITTAL INSTRUCTIONS AND DEADLINE
The Request for Proposal and Statement of Qualifications should be mailed to:
Jeremy Carter, General Manager
Hutchinson Utilities Commission
225 Michigan Ave.
Hutchinson, MN 55350-1905
Or emailed in Adobe format (pdf.) to:
jcarter,,a;ci.hutchinson.mn.us
Three (3) copies of the Request for Proposal/Statement of Qualifications if mailed are
due before 4:00 p.m. on May 1st, 2017. At least one copy must be an original and
must be clearly marked as such. If submitting via email, only one copy is required.
SELECTION CRITERIA
The intent of the selection process is to select the most qualified, responsive and
responsible firm(s) based on the identified needs of the Hutchinson Utilities
Commission. The selected firm(s) will have a demonstrated record of successfully
completing similar projects. Representatives from the selected firm(s) will become
integral members of the Hutchinson Utilities Commission Cost of Service/Rate Study
Team.
In all cases, Hutchinson Utilities Commission reserves the right to select a
firm(s) and award a contract(s) that is in the best interests of the Utility.
PROPOSER'S COSTS
Firms participating in the consultant selection process will be responsible for all costs
incurred to respond to this RFP.
9
All INQUIRIES DIRECTED TO:
Phone inquiries to request additional information or clarify the requirements of the
Request for Proposals and Statement of Qualifications are welcome. The following
individuals are available to answer questions.
KEY PERSONNEL
Main Contact:
Jeremy Carter
General Manager
Hutchinson Utilities Commission
320-234-0505
10
Alternate Contact:
Jared Martig
Finance Manager
Hutchinson Utilities Commission
320-234-0512
APPENDIX A
2017 RATE SCHEDULE
Electric Customers
Residential:
Energy Charge: 8.72 cents per KWH
Meter Charge: $6.50 per meter
Small General:
Energy Charge: First 2000 KWH per month — 9.11 cents per KWH
Energy Charge: Over 2000 KWH per month — 8.55 cents per KWH
Meter Charge: $10.00 per meter
Large General:
Energy Charge: 7.37 cents per KWH
Demand Charge: $6.00 per KW
Industrial:
Energy Charge: 6.10 cents per KWH
Demand Charge: $7.00 per KW
Gas Customers
Residential:
Energy Charge: $9.08 per MCF, or $.00908 per CF
Meter Charge: $6.50 per meter
Commercial:
Energy Charge: $9.08 per MCF, or $.00908 per CF
Meter Charge: $31.50 per meter
Industrial:
Energy Charge: $8.54 per MCF, or $.00854 per CF
Demand Charge: $10.00 per MCF
11
CHARGE OFF FOR 2017
CUST. q
JACCOUNT#
JAMT.OWING JELECTRIC
JNAT.GAS REASON FOR
45605
140450
$66.00
$66.00
50.00 in nursing home
5943
30955
$13.81
$13.81
$0.00 uncollectable
67437
60620
$138.92
$138.92
$0.00 uncollectable
9093
80470
$8.15
$8.15
$0.00 uncollectable
] 3335
60220
$76.99
$76.99
$0.00 uncollectable
68099
130489
$149.86
$149.86
$0.00 uncollectable
18641
310115
$634.18
$261.15
$373.03 uncollectable
19600
60635
$511.69
$511.69
$0.00 uncollectable
66873
130025
$45.04
$45.04
S0.00 uncollectable
38269
300301
$391.14
$345.99
$45.15 uncollectable
40460
50564
$165.64
$165.64
$0.00 uncollectable
46347
420558
$2.97
$2.97
$0.00 uncollectable
57197
20305
$286.14
$183.24
$102.90 uncollectable
59493
340066
$474.29
$460.45
$13.84 uncollectable
71243
20062
$12.37
$12.37
$0.00 uncollectable
Total: $2,977.19