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10-28-2020 HUCCP HUTCHINSON UTILITIES COMMISSION AGENDA REGULAR MEETING October 28, 2020 3:00 p.m. 1. CONFLICT OF INTEREST 2. APPROVE CONSENT AGENDA a. Approve Minutes b. Ratify Payment of Bills 3. APPROVE FINANCIAL STATEMENTS 4. OPEN FORUM 5. COMMUNICATION a. City Administrator b. Divisions c. Human Resources d. Legal e. General Manager 6. POLICIES a. Review Policies i. Security Light Rental Rate to Furnish and Maintain Fixture ii. Electric Service Requirements & Charges iii. Temporary Service- Electric iv. Temporary Service in Case of Underground Failure v. Electric Meter Placement vi. Sealing of Meters Electric vii. Meter Testing - Electric viii. Right-of-Way Clearing ix. Tree Removal of Trimming x. Electric xi. Natural Gas Service Requirements & Charges xii. Temporary Service Natural Gas xiii. Natural Gas Meter Requirements & Placement xiv. Meter Testing Natural Gas xv. Natural Gas Service Work xvi. Natural Gas b. Approve Changes i. Electric-Rate Schedule ii. Natural Gas Rate Schedule 7. UNFINISHED BUSINESS 8. NEW BUSINESS a. Rescind RFP for Ground Mounted Ballasted Utility Interactive Photovoltaic System Advertisement of Bid b. Approve new RFP for Ground Mounted or Ground Mounted Ballasted Utility Interactive Photovoltaic System Advertisement of Bid c. Discussion/Approval of Rescheduling the November 25, 2020 and December 30, 2020 Regular Commission Meetings if needed d. Discussion of reappointment of Robert Wendorff to the Hutchinson Utilities Commission e. Discussion of Moving 2021 Pay Grid f. Discussion of Bright Energy Choices Program g. Discussion on MRES Power Supply Refund Payment 9. ADJOURN MINUTES Regular Meeting Hutchinson Utilities Commission Wednesday, September 30, 2020 Call to order 3:00 p.m. Secretary Robert Wendorff called the meeting to order. Members present: Secretary Robert Wendorff; Commissioner Monty Morrow; Commissioner Anthony Hanson; GM Jeremy Carter; Attorney Marc Sebora; Absent: President Don Martinez, Vice President Matt Cheney 1. Conflict of Interest 2. Approve Consent Agenda a. Approve Minutes b. Ratify Payment of Bills Motion by Commissioner Hanson, second by Commissioner Morrow to approve the Consent Agenda. Motion carried unanimously. 3. Approve Financial Statements GM Carter presented the Financial Statements. Both Electric and Natural Gas Divisions are trending well through August. Natural Gas Division is running about 5.5-6% behind; however, Staff is anticipating making that up throughout the winter. GM Carter highlighted the receivable balances due to Covid-19. Back in March HUC suspended disconnections and late fees due to the pandemic. As of date, HUC has collected about $40K in late fees compared to $160K in 2019. GM Carter reviewed outstanding balances over 30 days. Staff continues to make phone calls, send emails and direct customers to use the different funding options that are available during this pandemic time to help with outstanding balances. The State is continuing to encourage utilities to not disconnect services to customers until the pandemic is over. Motion by Commissioner Morrow, second by Commissioner Hanson to approve the financial statements. Motion carried unanimously. 4. Open Forum 5. Communication a. City Administrator Matthew Jaunich Absent b. Divisions i. Dan Lang, Engineering Services Manager Absent ii. Dave Hunstad, Electric Transmission/Distribution Manager Absent iii. Randy Blake, Production Manager Absent iv. John Webster, Natural Gas Division Director Absent 1 v. Jared Martig, Financial Manager- Absent c. Human Resources - Brenda Ewing Absent d. Legal Marc Sebora i. Hutchinson Charter Commission has approved the changes to the City Charter Amendment on the eligibility requirements to serve as a Hutchinson Utilities Commissioner. This information will be forwarded to the City Council. e. General Manager Jeremy Carter i. Covid-19 update HUC will be receiving funds back from the City under the CARES Act monies. The City is earmarking about $20k for HUC reimbursements. ii. Capacity Bank site preparation is complete and the area has been fenced in. The site is now ready for installation of the equipment. iii. Plant 2 soil borings are completed and civil design work is being worked on. iv. EV fast charger installation will start the week of October 12 v. vi. Next week is Public Power week, there will not be an Open House this year due to Covid-19; however, HUC will market on social media. vii. Two new employees started in the Natural Gas Division. viii. Working on Preliminary budgets ix. Bright Energy Program Update Vice President Matt Cheney joined the meeting at 3:20pm x. Discussions will need to be held on the movement of the Salary Grid. Staff will be looking at CIP and inflation and will provide the Board with the findings. xi. XL will not be renewing equipment breakdown insurance coverage with HUC. XL is stepping away from the Energy sectors. Staff is looking at other options. Property insurance may be increasing by 10-30%. xii. Projects are going well xiii. Units 6 & 7 are continuing to spray oil; CAT will be sending someone to look at the engines. HUC has been able to use the units. 6. Policies a. Review Policies i. Disconnection of Residential Services by HUC ii. Disconnection of Commercial Services by HUC iii. After hours Reconnection Policy iv. Landlord Acknowledgement v. Inserts with Utility Bills vi. Identity Theft Red Flag Program vii. MN Government Data Practices Act & Public Records Request No changes recommended at this time. b. Approve Changes 2 7. Unfinished Business a. None 8. New Business a. Approval of RFP for Ground Mounted Ballasted Utility Interactive Photovoltaic System GM Carter presented approval of RFP for Ground Mounted Ballasted Utility Interactive Photovoltaic System along with an advertisement for bid and updated map. Hutchinson Utilities is looking to solicit an RFP for direct purchase total of a Ground Mounted Ballasted Utility interactive solar photovoltaic system. This project would include all necessary equipment, materials and design, manufacturing, and installation services. The system shall fill the allowable build-able area of the property and be able to produce a minimum of 1,100,000 kWh/AC annually. The system will be located in the A motion by Commissioner Wendorff, second by Commissioner Hanson to Approve Advertisement of Bid for RFP for Ground Mounted Ballasted Utility Interactive Photovoltaic System. Motion carried unanimously. b. Approval of Requisition #8539 to PE Services to prepare Written Transmission Integrity Management Plan (IMP) & Moderate Consequence Area (MCA) Assessment Process GM Carter presented approval of Requisition #8539 to PE Services to prepare Written Transmission Integrity Management Plan (IMP) & Moderate Consequence Area (MCA) Assessment Process. With the recent growth in the Hutchinson Industrial Park area -HCA , HUC Natural Gas Division is now required to prepare and implement a complete Transmission Integrity Management Plan and Moderate Consequence Area (MCA) Assessment process. This item was not budgeted for last year; however, HUC is not able to accommodate the in-depth assessment that is needed. Professional Engineering Services, in partnership with Paramount Energy Consulting Group, LLC (PECG), will complete both programs for Hutchinson Utilities. A motion by Commissioner Morrow , second by Commissioner Hanson to Approve Requisition #8539 to PE Services to prepare Written Transmission 3 Integrity Management Plan (IMP) & Moderate Consequence Area (MCA) Assessment Process. Motion carried unanimously. 9. Adjourn There being no further business, a motion by Commissioner Morrow, second by Commissioner Wendorff to adjourn the meeting at 3:38p.m. Motion carried unanimously. __________________________ Robert Wendorff, Secretary ATTEST: _________________________ Don Martinez, President 4 HUTCHINSON UTILITIES COMMISSION COMBINED DIVISIONS FINANCIAL REPORT FOR SEPTEMBER, 2020 September, 2020 MonthYear to Date 75% of Year Comp. 20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud Combined Division Customer Revenue$ 2,366,583$ 2,511,560 $ (144,978)(5.8%)$ 24,790,389$ 26,590,715$ (1,800,327)(6.8%)$ 35,819,11669.2% Sales for Resale$ 249,342$ 281,732$ (32,390)(11.5%)$ 1,935,237$ 2,132,443$ (197,206) (9.2%)$ 3,007,25064.4% NU Transportation$ 97,143$ 95,909$ 1,2341.3%$ 772,718 $ 767,154$ 5,5640.7%$ 898,64086.0% Electric Division Transfer$ 55,440$ 54,982$ 4580.8%$ 498,962 $ 494,837$ 4,1250.8%$ 665,28375.0% Other Revenues$ 24,942$ 104,797$ (79,854)(76.2%)$ 713,186 $ 469,725$ 243,46051.8%$ 466,207153.0% Interest Income$ 40,397$ 52,035$ (11,638)(22.4%)$ 384,260 $ 393,414$ (9,154)(2.3%)$ 383,456100.2% TOTAL REVENUES$ 2,833,847$ 3,101,015 $ (267,168)(8.6%)$ 29,094,752$ 30,848,288$ (1,753,537)(5.7%)$ 41,239,95270.5% Salaries & Benefits$ 514,234$ 468,913$ 45,321 9.67%$ 4,915,220$ 4,518,926$ 396,2948.8%$ 6,946,88070.8% Purchased Commodities$ 1,134,118$ 1,170,290 $ (36,172)(3.1%)$ 13,638,967$ 14,843,303$ (1,204,337)(8.1%)$ 19,252,47770.8% Transmission$ 202,801$ 333,177$ (130,375)(39.1%)$ 1,657,794$ 2,288,211$ (630,417) (27.6%)$ 2,680,00061.9% Generator Fuel/Chem.$ 13,915$ 151,315$ (137,400)(90.8%)$ 446,135 $ 541,731$ (95,596)(17.6%)$ 825,87554.0% Depreciation$ 327,083$ 327,083$ -0.0%$ 2,943,750$ 2,943,750$ - 0.0%$ 3,925,00075.0% Transfers (Elect./City)$ 211,040$ 188,434$ 22,606 12.0%$ 1,899,359$ 1,695,905$ 203,45412.0%$ 2,532,47575.0% Operating Expense$ 134,742$ 207,353$ (72,611)(35.0%)$ 1,653,795$ 1,855,880$ (202,085) (10.9%)$ 2,605,31363.5% Debt Interest$ 89,542$ 97,334$ (7,792) (8.0%)$ 805,880 $ 876,005$ (70,125)(8.0%)$ 1,074,50775.0% TOTAL EXPENSES$ 2,627,475$ 2,943,899 $ (316,423)(10.7%)$ 27,960,900$ 29,563,712$ (1,602,812)(5.4%)$ 39,842,52770.2% NET PROFIT/(LOSS)$ 206,372$ 157,117$ 49,255 31.3%$ 1,133,852$ 1,284,577$ (150,725) (11.7%)$ 1,397,42581.1% Combined Divisions - Financial/Operating Ratios SeptemberSeptemberYTD YTD 2020HUC 20202019Change20202019ChangeBudgetTarget Gross Margin %40.2%33.0%7.2%33.5%32.2%1.3%34.6%26% - 28% Operating Income Per Revenue $ (%)8.4%4.0%4.3%3.2%4.9%-1.8%4.6%1%-4% Net Income Per Revenue $ (%):7.3%5.1%2.2%3.9%4.2%-0.3%3.4%0%-1% Notes/Graphs: HUTCHINSON UTILITIES COMMISSION ELECTRIC DIVISION FINANCIAL REPORT FOR SEPTEMBER, 2020 September, 2020 MonthYear to Date 75% of Year Comp. 20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud Electric Division Customer Revenue$ 1,921,750$ 2,142,905$ (221,155)(10.3%)$ 18,085,659$ 19,246,683$ (1,161,024) (6.0%)$ 25,627,44870.6% Sales for Resale$ 249,342$ 281,732 $ (32,390)(11.5%)$ 1,935,237$ 2,132,443$ (197,206)(9.2%)$ 3,007,25064.4% Other Revenues$ 6,664 $ 57,738$ (51,074)(88.5%)$ 459,833$ 204,643$ 255,190124.7%$ 179,499256.2% Interest Income$ 21,593$ 27,412$ (5,819) (21.2%)$ 204,676$ 209,636$ (4,959)(2.4%)$ 208,45698.2% TOTAL REVENUES$ 2,199,349$ 2,509,786$ (310,438)(12.4%)$ 20,685,405$ 21,793,404$ (1,107,999) (5.1%)$ 29,022,65371.3% Salaries & Benefits$ 392,927$ 350,177 $ 42,75012.2%$ 3,687,383$ 3,355,532$ 331,8529.9%$ 5,074,75972.7% Purchased Power$ 910,451$ 979,436 $ (68,984)(7.0%)$ 9,878,207$ 10,691,169$ (812,962)(7.6%)$ 13,480,33273.3% Transmission$ 202,801$ 333,177 $ (130,375)(39.1%)$ 1,657,794$ 2,288,211$ (630,417)(27.6%)$ 2,680,00061.9% Generator Fuel/Chem.$ 13,915$ 151,315 $ (137,400)(90.8%)$ 446,135$ 541,731$ (95,596)(17.6%)$ 825,87554.0% Depreciation$ 241,667$ 241,667 $ -0.0%$ 2,175,000$ 2,175,000$ - 0.0%$ 2,900,00075.0% Transfers (Elect./City)$ 163,236$ 147,172 $ 16,06410.9%$ 1,469,120$ 1,324,546$ 144,57310.9%$ 1,958,82675.0% Operating Expense$ 96,161$ 144,886 $ (48,725)(33.6%)$ 1,095,309$ 1,301,198$ (205,889)(15.8%)$ 1,654,94366.2% Debt Interest$ 44,471$ 46,555$ (2,083) (4.5%)$ 400,242$ 418,992$ (18,750)(4.5%)$ 533,65775.0% TOTAL EXPENSES$ 2,065,629$ 2,394,383$ (328,754)(13.7%)$ 20,809,190$ 22,096,380$ (1,287,190) (5.8%)$ 29,108,39271.5% NET PROFIT/(LOSS)$ 133,719$ 115,404 $ 18,31615.9%$ (123,785)$ (302,976)$ 179,191(59.1%)$ (85,739)144.4% September, 2020 MonthYear to Date 75% of Year Comp. 20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud Electric Division Residential3,766,8114,150,896 (384,085)(9.25%)40,925,66538,706,741 2,218,924 5.73% 51,590,88979.3% All Electric120,919117,924 2,9952.54%1,891,9511,865,713 26,238 1.41% 2,545,49774.3% Small General1,316,0661,501,676 (185,610)(12.36%)13,463,84814,349,493 (885,645) (6.17%) 18,956,24871.0% Large General6,528,1506,840,690 (312,540)(4.57%)59,218,73061,483,460 (2,264,730) (3.68%) 79,933,58374.1% Industrial9,637,00010,988,000 (1,351,000)(12.30%)89,673,00091,524,000 (1,851,000) (2.02%) 129,279,66669.4% Total KWH Sold 21,368,946 23,599,186 (2,230,240)(9.45%) 205,173,194 207,929,407 (2,756,213)(1.33%) 282,305,88372.7% Financial/Operating Ratios SeptemberSeptemberYTD YTD 2020HUC 20202019Change20202019ChangeBudgetTarget Gross Margin %34.6%27.3%7.3%26.7%24.9%1.8%28.7%24% - 28% Operating Income Per Revenue $ (%)7.0%3.8%3.2%-1.7%-0.7%-1.0%0.8%0%-5% Net Income Per Revenue $ (%):6.1%4.6%1.5%-0.6%-1.4%0.8%-0.3%0%-5% Customer Revenue per KWH:$0.0883$0.0892-$0.0010$0.0876$0.0920-$0.0044$0.0903$0.0903 Total Power Supply Exp. per KWH:$0.0665$0.0752-$0.0087$0.0717$0.0777-$0.0060$0.0728$0.0728 Notes/Graphs: Net Profit increased by $18,316 despite lower usage and revenues mostly from a decrease in expenses directly related to providing power including purchased power, transmission, and fuels. Sales for Resale of $249,342 consisted of $5,092 in market sales, $98,000 in capacity sales to Rice Lake and $146,250 in capacity sales to AEP. September 2019 Sales for Resale of $281,732 consisted of $71,755 in market sales, $36,400 in monthly tolling fees from Transalta, $24,077 in Transalta energy sales, $13,500 in capacity sales to AEP, and $136,000 in capacity sales to SMMPA. September 2018 Sales for Resale of $233,698 consisted of $8,512 in market sales, $35,600 in Transalta tolling fees, $73,586 in Transalta energy sales, and $116,000 SMMPA capacity sales. Overall Purchased Power decreased by $68,984. MRES purchases decreased by $54,113 and market purchases/MISO costs decreased by $14,871. MRES purchases decreased due to no longer having to pay the rate adder of $54,000 going forward. This was a 10 year adder required to join MRES. September 2020 power cost adjustment was $.00166 bringing in an additional $36,453 for the month and $500,520 YTD. Last year's power cost adjustment for August 2019 generated $86,641 in additional revenue for the month and $1,521,013 YTD. HUTCHINSON UTILITIES COMMISSION GAS DIVISION FINANCIAL REPORT FOR SEPTEMBER, 2020 September, 2020 MonthYear to Date 75% of Year Comp. 20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud Gas Division Customer Revenue$ 444,832$ 368,655$ 76,17720.7%$ 6,704,730$ 7,344,033$ (639,303)(8.7%)$ 10,191,66865.8% Transportation$ 97,143$ 95,909$ 1,2341.3%$ 772,718 $ 767,154 $ 5,5640.7%$ 898,64086.0% Electric Div. Transfer$ 55,440$ 54,982$ 4580.8%$ 498,962 $ 494,837 $ 4,1250.8%$ 665,28375.0% Other Revenues$ 18,279$ 47,059$ (28,780)(61.2%)$ 253,353 $ 265,083 $ (11,730)(4.4%)$ 286,70888.4% Interest Income$ 18,804$ 24,624$ (5,819) (23.6%)$ 179,584 $ 183,778 $ (4,194)(2.3%)$ 175,000102.6% TOTAL REVENUES$ 634,498$ 591,229$ 43,2707.3%$ 8,409,347$ 9,054,884$ (645,537)(7.1%)$ 12,217,29968.8% Salaries & Benefits$ 121,306$ 118,736$ 2,5702.2%$ 1,227,837$ 1,163,394$ 64,4435.5%$ 1,872,12165.6% Purchased Gas$ 223,667$ 190,855$ 32,81217.2%$ 3,760,760$ 4,152,134$ (391,375)(9.4%)$ 5,772,14565.2% Operating Expense$ 38,581$ 62,467$ (23,886)(38.2%)$ 558,486 $ 554,682 $ 3,8040.7%$ 950,37058.8% Depreciation$ 85,417$ 85,417$ -0.0%$ 768,750 $ 768,750 $ - 0.0%$ 1,025,00075.0% Transfers (City)$ 47,804$ 41,262$ 6,54215.9%$ 430,240 $ 371,359 $ 58,88115.9%$ 573,64975.0% Debt Interest$ 45,071$ 50,779$ (5,708) 0.0%$ 405,638 $ 457,013 $ (51,375)(11.2%)$ 540,85075.0% TOTAL EXPENSES$ 561,846$ 549,516$ 12,3302.2%$ 7,151,710$ 7,467,332$ (315,622)(4.2%)$ 10,734,13566.6% NET PROFIT/(LOSS)$ 72,652$ 41,713$ 30,93974.2%$ 1,257,637$ 1,587,553$ (329,916)(20.8%)$ 1,483,16484.8% September, 2020 MonthYear to Date 75% of Year Comp. 20202019Diff.% Chng20202019Diff.% Chng Full Yr Bud% of Bud Gas Division Residential9,567,2887,245,756 2,321,532 32.04%267,605,695304,902,574 (37,296,879) (12.23%) 422,479,00063.3% Commercial9,267,9339,512,434 (244,501)(2.57%)206,864,777237,143,629 (30,278,852) (12.77%) 331,731,00062.4% Industrial49,961,23849,269,414 691,8241.40%628,958,923620,083,328 8,875,5951.43% 803,079,00078.3% Total CF Sold 68,796,459 66,027,604 2,768,855 4.19% 1,103,429,395 1,162,129,531 (58,700,136) (5.05%) 1,557,289,00070.9% Financial/Operating Ratios SeptemberSeptemberYTD YTD 2020HUC 20202019Change20202019ChangeBudgetTarget Gross Margin %60.3%59.1%1.2%50.6%50.4%0.2%49.0%37%-42% Operating Income Per Revenue $ (%)13.5%5.1%8.4%15.6%19.1%-3.5%13.8%11%-16% Net Income Per Revenue $ (%):12.2%8.0%4.1%15.8%18.4%-2.7%12.6%6%-11% Contracted Customer Rev. per CF:$0.0038$0.0036$0.0002$0.0036$0.0040-$0.0003$0.0040$0.0040 Customer Revenue per CF:$0.0121$0.0104$0.0017$0.0089$0.0087$0.0002$0.0089$0.0089 Total Power Supply Exp. per CF:$0.0034$0.0033$0.0002$0.0036$0.0037($0.0001)$0.0039$0.0039 Notes/Graphs: September 2020 net profit increased by $30,939 led by an increase in customer revenue along with a decrease in operating expenses. September 2020 fuel cost credit adjustment was $0.73586/MCF totalling $16,391 for the month and $552,320 YTD. September 2019 credits totalled $149,769 for the month and $1,308,217 YTD. HUTCHINSONUTILITIESCOMMISSION BALANCESHEET-CONSOLIDATED SEPTEMBER 30, 2020 ElectricGasTotalTotal Net Change DivisionDivision20202019Total(YTD) Current Assets Cash 6,074,495.18 10,169,489.97 16,243,985.15 15,725,377.51 518,607.64 Petty Cash 680.00 170.00 850.00 850.00 - Capital Expenditures - Five Yr. CIP 2,750,000.00 700,000.00 3,450,000.00 3,450,000.00 - Payment in Lieu of Taxes 1,293,543.00 573,649.00 1,867,192.00 1,601,424.00 265,768.00 Rate Stabilization - Electric 261,197.43 - 261,197.43 372,736.68 (111,539.25) Rate Stabilization - Gas - 651,306.61 651,306.61 651,306.61 - Catastrophic Funds 400,000.00 100,000.00 500,000.00 500,000.00 - Bond Interest Payment 2017 1,582,213.57 - 1,582,213.57 1,486,380.21 95,833.36 Bond Interest Payment 2012 - 1,663,208.36 1,663,208.36 1,641,720.85 21,487.51 Debt Service Reserve Funds 522,335.64 2,188,694.02 2,711,029.66 2,711,029.66 - Total Current Assets 12,884,464.82 1 6,046,517.96 28,930,982.78 2 8,140,825.52 790,157.26 Receivables Accounts (net of uncollectible allowances) 2,048,293.86 549,996.67 2,598,290.53 2,830,745.76 (232,455.23) Interest 57,982.32 57,982.32 115,964.64 47,264.58 68,700.06 Total Receivables 2,106,276.18 6 07,978.99 2,714,255.17 2 ,878,010.34 (163,755.17) Other Assets 1,505,160.06 475,299.45 1,786,844.23 Inventory 1,980,459.51 193,615.28 (165,035.22) 24,455.90 208,915.31 Prepaid Expenses (140,579.32) (349,494.63) 114,669.46 - Sales Tax Receivable 114,669.46 60,732.59 53,936.87 Deferred Outflows - Electric 219,249.00 - 219,249.00 494,053.00 (274,804.00) Deferred Outflows - Gas - 73,083.00 73,083.00 164,685.00 (91,602.00) 1,674,043.30 5 72,838.35 2,246,881.65 2 ,715,230.13 (468,348.48) Total Other Assets Total Current Assets 16,664,784.30 1 7,227,335.30 33,892,119.60 3 3,734,065.99 158,053.61 Capital Assets Land & Land Rights 690,368.40 3,899,918.60 4,590,287.00 4,590,287.00 - Depreciable Capital Assets 91,543,082.85 42,001,576.49 133,544,659.34 131,891,012.13 1,653,647.21 Accumulated Depreciation (60,075,382.29) (17,933,636.88) (78,009,019.17) (74,201,540.46) (3,807,478.71) Construction - Work in Progress 16,649,850.63 412,443.04 17,062,293.67 16,368,494.98 693,798.69 Total Net Capital Assets 48,807,919.59 2 8,380,301.25 77,188,220.84 7 8,648,253.65 (1,460,032.81) Total Assets 6 5,472,703.89 4 5,607,636.55 1 11,080,340.44 1 12,382,319.64 ( 1,301,979.20) HUTCHINSONUTILITIESCOMMISSION BALANCESHEET-CONSOLIDATED SEPTEMBER 30, 2020 ElectricGasTotalTotal Net Change DivisionDivision20202019Total(YTD) Current Liabilities Current Portion of Long-term Debt Bonds Payable 645,000.00 1,455,000.00 2,100,000.00 1,995,000.00 105,000.00 Bond Premium - 185,608.32 185,608.32 185,608.32 - Accounts Payable 1,393,771.15 508,902.15 1,902,673.30 2,879,327.94 (976,654.64) Accrued Expenses Accrued Interest 177,885.44 180,283.36 358,168.80 389,335.44 (31,166.64) Accrued Payroll 149,255.99 53,072.93 202,328.92 125,603.68 76,725.24 Total Current Liabilities 2,365,912.58 2 ,382,866.76 4,748,779.34 5 ,574,875.38 (826,096.04) Long-Term Liabilities Noncurrent Portion of Long-term Debt 2017 Bonds 15,405,000.00 - 15,405,000.00 16,050,000.00 (645,000.00) 2012 Bonds - 11,075,000.00 11,075,000.00 12,530,000.00 (1,455,000.00) Bond Premium 2012 574,344.48 958,975.95 1,533,320.43 1,752,385.71 (219,065.28) Pension Liability - Electric 2,686,985.00 - 2,686,985.00 2,700,290.00 (13,305.00) Pension Liability - Electric OPEB 76,502.00 - 76,502.00 72,192.00 4,310.00 Pension Liability - Nat Gas - 895,662.00 895,662.00 900,097.00 (4,435.00) Pension Liability - Nat Gas OPEB - 25,501.00 25,501.00 24,064.00 1,437.00 Accrued Vacation Payable 380,134.01 146,202.28 526,336.29 477,451.52 48,884.77 Accrued Severance 81,360.39 33,739.79 115,100.18 106,630.34 8,469.84 Deferred Outflows - Electric 550,772.00 - 550,772.00 804,800.00 (254,028.00) Deferred Outflows - Nat Gas - 183,591.00 183,591.00 268,267.00 (84,676.00) Total Long-Term Liabilities 19,755,097.88 1 3,318,672.02 33,073,769.90 3 5,686,177.57 (2,612,407.67) Net Position Retained Earnings 43,351,693.43 29,906,097.77 73,257,791.20 71,121,266.69 2,136,524.51 Total Net Position 43,351,693.43 2 9,906,097.77 73,257,791.20 7 1,121,266.69 2,136,524.51 Total Liabilities and Net Position 65,472,703.89 4 5,607,636.55 111,080,340.44 1 12,382,319.64 (1,301,979.20) Hutchinson Utilities Commission Cash-Designations Report, Combined 9/30/2020 Change in Financial Annual Balance, Balance, Cash/Reserve InstitutionCurrent Interest RateInterestSeptember 2020 August 2020 Position Savings, Checking, Investmentsvariesvariesvaries 28,930,982.78 28,689,614.04 241,368.74 Total Operating Funds 28,930,982.78 28,689,614.04 241,368.74 Combined Divisions - Total Funds 28,930,982.78 28,689,614.04 241,368.74 Restricted Funds: Debt Reserve RequirementsBond Covenants - sinking fund 3,245,421.93 2,980,879.73 264,542.20 Debt Reserve RequirementsBond Covenants -1 year Max. P & I 2,711,029.66 2,711,029.66 - Total Restricted Funds 5,956,451.59 5,691,909.39 264,542.20 Excess Reserves Less Restrictions, Combined 22,974,531.19 22,997,704.65 (23,173.46) Designated Funds: Operating ReserveMin 60 days of 2020 Operating Bud. 5,981,005.00 5,981,005.00 - Rate Stabalization Funds 912,504.04 912,504.04 - PILOT FundsCharter (Formula Only) 1,867,192.00 1,867,192.00 - Catastrophic FundsRisk Mitigation Amount 500,000.00 500,000.00 - Capital Reserves5 Year CIP ( 2020-2024 Fleet & Infrastructure Maintenance) 3,450,000.00 3,450,000.00 - Total Designated Funds 12,710,701.04 12,710,701.04 - Excess Reserves Less Restrictions & Designations, Combined 10,263,830.15 10,287,003.61 (23,173.46) Financial/Operating Ratios YEYEYEYEYTDHUC 20162017201820192020Target Debt to Asset32.2%40.2%37.7%34.9%34.0%<50% Current Ratio3.063.363.935.115.82>2.0 RONA2.17%1.82%3.16%2.25%1.13%>0% Notes/Graphs: Change in Cash Balance (From 12/31/14 to 9/30/2020) Month End ElectricElec. ChangeNatural GasGas Change TotalTotal Change 8/31/2020 12,884,465 16,046,518 28,930,983 12/31/2019 12,124,142 760,323 13,837,040 2,209,478 25,961,181 2,969,801 12/31/2018 15,559,867 (3,435,725) 12,335,998 1,501,042 27,895,864 (1,934,683) 12/31/2017 23,213,245 (7,653,378) 10,702,689 1,633,309 33,915,934 (6,020,070) 12/31/2016 8,612,801 14,600,444 9,500,074 1,202,615 18,112,875 15,803,059 12/31/2015 6,170,790 2,442,011 9,037,373 462,701 15,208,163 2,904,712 12/31/2014 3,598,821 2,571,969 6,765,165 2,272,208 10,363,986 4,844,177 * 2017's Signifcant increase in cash balance is due to issuing bonds for the generator project. Hutchinson Utilities Commission Cash-Designations Report, Electric 9/30/2020 Change in Financial Annual Balance, Balance, Cash/Reserve InstitutionInterestSeptember 2020 August 2020 Position Current Interest Rate Operating Funds: Savings, Checking, Investmentsvariesvariesvaries 28,930,982.78 28,689,614.04 241,368.74 Total HUC Operating Funds 28,930,982.78 28,689,614.04 241,368.74 Electric Division - Total Funds 12,884,464.82 12,701,211.11 183,253.71 Restricted Funds: Debt Restricted RequirementsBond Covenants - sinking fund 1,582,213.57 1,483,992.21 98,221.36 Debt Restricted RequirementsBond Covenants -1 year Max. P & I 522,335.64 522,335.64 - Total Restricted Funds 2,104,549.21 2,006,327.85 98,221.36 Excess Reserves Less Restrictions, Electric 10,779,915.61 10,694,883.26 85,032.35 Designated Funds: Operating ReserveMin 60 days of 2020 Operating Bud. 4,367,899.00 4,367,899.00 - Rate Stabalization Funds$400K-$1.2K 261,197.43 261,197.43 - PILOT FundsCharter (Formula Only) 1,293,543.00 1,293,543.00 - Catastrophic FundsRisk Mitigation Amount 400,000.00 400,000.00 - Capital Reserves5 Year CIP ( 2020-2024 Fleet & Infrastructure Maintenance) 2,750,000.00 2,750,000.00 - Total Designated Funds 9,072,639.43 9,072,639.43 - Excess Reserves Less Restrictions & Designations, Electric 1,707,276.18 1,622,243.83 85,032.35 Financial/Operating Ratios YEYEYEYEYTDAPPA RatioHUC 201620172018201920205K-10K Cust.Target Debt to Asset Ratio (* w/Gen.)16.7%35.4%35.7%34.1%33.8%50.1%<50% Current Ratio3.574.363.635.266.062.43>2.0 RONA-0.4%-0.6%-0.3%-0.4%-0.2%NA>0% Notes/Graphs: Hutchinson Utilities Commission Cash-Designations Report, Gas 9/30/2020 Change in Financial Annual Balance, Balance, Cash/Reserve InstitutionCurrent Interest RateInterestSeptember 2020 August 2020 Position Operating Funds: Savings, Checking, Investmentsvariesvariesvaries28,930,982.7828,689,614.04241,368.74 Total HUC Operating Funds 28,930,982.78 28,689,614.04 241,368.74 Gas Division - Total Funds 16,046,517.96 15,988,402.93 58,115.03 Restricted Funds: Debt Restricted RequirementsBond Covenants - sinking fund 1,663,208.36 1,496,887.52 166,320.84 Debt Restricted RequirementsBond Covenants -1 year Max. P & I 2,188,694.02 2,188,694.02 - Total Restricted Funds 3,851,902.38 3,685,581.54 166,320.84 Excess Reserves Less Restrictions, Gas 12,194,615.58 12,302,821.39 (108,205.81) Designated Funds: Operating ReserveMin 60 days of 2020 Operating Bud. 1,613,106.00 1,613,106.00 - Rate Stabalization Funds$200K-$600K 651,306.61 651,306.61 - PILOT FundsCharter (Formula Only) 573,649.00 573,649.00 - Catastrophic FundsRisk Mitigation Amount 100,000.00 100,000.00 - Capital Reserves5 Year CIP ( 2020-2024 Fleet & Infrastructure Maintenance) 700,000.00 700,000.00 - Total Designated Funds 3,638,061.61 3,638,061.61 - Excess Reserves Less Restrictions & Designations, Gas 8,556,553.97 8,664,759.78 (108,205.81) Financial/Operating Ratios YEYEYEYEYTDHUC 20162017201820192020APGA RatioTarget Debt to Asset51.2%47.6%40.7%36.1%34.4%TBD<50% Current Ratio2.592.744.334.965.58TBD>2.0 RONA5.6%5.0%8.3%6.4%3.2%TBD>0% Notes/Graphs: HUTCHINSON UTILITIES COMMISSION Investment Report For the Month Ended September 30, 2020 InterestCurrentDate ofDate ofParCurrentPurchaseUnrealizedPremiumNext InstitutionDescriptionRateYTMPurchaseMaturityValueValueAmountGain/(Loss)(Discount)Call Date Wells FargoMoney Market0.010%0.010%NANA - 39,518.11 - - -N/A Wells FargoFHLMC0.320%0.320%07/20/202010/20/2022 305,000.00 305,161.65 305,000.00 161.65 -01/20/2021 Wells FargoCD's1.700%1.700%02/21/202002/22/2022 245,000.00 250,458.60 245,000.00 5,458.60 -N/A Wells FargoCD's1.300%1.300%03/31/202009/30/2021 245,000.00 247,989.00 245,000.00 2,989.00 -N/A Wells FargoCD's1.900%1.900%08/21/201908/23/2021 174,000.00 176,860.56 174,000.00 2,860.56 -N/A Wells FargoCD's2.500%2.500%04/02/201904/05/2021 245,000.00 248,055.15 245,000.00 3,055.15 -N/A Wells FargoCD's1.250%1.250%04/08/202004/08/2021 245,000.00 246,521.45 245,000.00 1,521.45 -N/A Wells FargoFHLMC0.325%0.325%08/04/202002/03/2023 467,000.00 466,430.26 467,011.22 (580.96) 11.2202/03/2021 Wells FargoCD's0.300%0.300%09/28/202012/28/2023 245,000.00 245,024.50 245,000.00 24.50 -12/28/2020 Wells FargoCD's0.500%0.698%07/30/202007/30/2025 245,000.00 245,289.10 245,000.00 289.10 -01/30/2021 Wells FargoCD's2.000%2.000%08/29/202008/22/2022 200,000.00 205,670.00 200,000.00 5,670.00 -03/29/2021 Wells FargoCD's0.200%0.200%06/25/202006/23/2021 248,000.00 248,220.72 248,000.00 220.72 -N/A Wells FargoCD's0.200%0.200%06/25/202012/28/2020 74,000.00 74,025.90 74,000.00 25.90 -N/A Wells FargoCD's1.700%1.700%01/31/202005/03/2021 245,000.00 247,356.90 245,000.00 2,356.90 -N/A Wells FargoCD's1.750%1.750%01/29/202007/29/2021 245,000.00 248,405.50 245,000.00 3,405.50 -N/A Broker Total26.5% 3,428,000.00 3,494,987.40 3,428,011.22 27,458.07 11.22 Cetera Investment ServicesMoney Market0.100%0.100%N/AN/A - 2,736.18 - - -N/A Cetera Investment ServicesMunicipal Bonds2.300%1.715%12/11/201710/01/2020 100,000.00 100,000.00 101,595.00 (1,595.00) 1,595.00N/A Cetera Investment ServicesMunicipal Bonds2.875%2.121%04/29/201609/01/2021 250,000.00 255,397.50 259,467.50 (4,070.00) 9,467.50N/A Cetera Investment ServicesMunicipal Bonds3.751%2.399%04/29/201611/01/2021 250,000.00 255,642.50 267,330.00 (11,687.50) 17,330.00N/A Cetera Investment ServicesMunicipal Bonds3.139%2.190%12/11/201709/01/2021 300,000.00 305,229.00 310,116.00 (4,887.00) 10,116.00N/A Cetera Investment ServicesMunicipal Bonds3.436%3.436%12/20/201812/15/2021 50,000.00 49,295.00 45,155.00 4,140.00 (4,845.00)N/A Cetera Investment ServicesMunicipal Bonds2.655%2.208%12/11/201703/01/2022 300,000.00 308,256.00 305,314.92 2,941.08 5,314.92N/A Cetera Investment ServicesMunicipal Bonds3.000%3.118%12/20/201808/01/2022 50,000.00 51,838.00 50,377.67 1,460.33 377.67N/A Cetera Investment ServicesMunicipal Bonds3.633%3.116%12/20/201809/01/2022 250,000.00 261,475.00 257,217.48 4,257.52 7,217.48N/A Cetera Investment ServicesMunicipal Bonds3.240%3.240%11/17/201702/15/2023 80,000.00 78,041.60 69,633.48 8,408.12 (10,366.52)N/A Cetera Investment ServicesMunicipal Bonds3.650%3.004%12/20/201802/01/2023 250,000.00 261,277.50 256,165.00 5,112.50 6,165.00N/A Cetera Investment ServicesMunicipal Bonds3.075%3.236%12/20/201806/01/2023 50,000.00 52,982.50 49,746.15 3,236.35 (253.85)N/A Cetera Investment ServicesMunicipal Bonds2.500%3.181%12/20/201808/01/2023 35,000.00 36,299.55 34,320.05 1,979.50 (679.95)N/A Cetera Investment ServicesMunicipal Bonds3.400%3.148%12/20/201811/01/2023 125,000.00 130,960.00 126,376.25 4,583.75 1,376.25N/A Cetera Investment ServicesMunicipal Bonds3.400%3.148%12/20/201811/01/2023 65,000.00 68,039.40 65,715.65 2,323.75 715.65N/A Cetera Investment ServicesMunicipal Bonds5.290%2.724%04/18/201906/01/2023 260,000.00 285,441.00 291,059.96 (5,618.96) 31,059.96N/A Cetera Investment ServicesMunicipal Bonds2.854%3.173%12/20/201802/01/2024 100,000.00 105,645.00 99,605.96 6,039.04 (394.04)N/A Cetera Investment ServicesMunicipal Bonds2.977%3.246%12/20/201803/15/2024 250,000.00 269,317.50 248,743.99 20,573.51 (1,256.01)N/A Cetera Investment ServicesMunicipal Bonds1.940%1.821%01/13/202005/01/2024 65,000.00 67,718.95 65,570.70 2,148.25 570.70N/A Cetera Investment ServicesMunicipal Bonds2.528%1.918%01/13/202012/01/2024 100,000.00 104,810.00 102,999.53 1,810.47 2,999.53N/A Cetera Investment ServicesMunicipal Bonds3.922%3.429%12/20/201812/01/2024 204,000.00 228,994.08 208,181.10 20,812.98 4,181.10N/A Cetera Investment ServicesMunicipal Bonds5.742%3.658%04/11/201908/01/2024 355,000.00 399,055.50 464,344.41 (65,288.91) 109,344.41N/A Cetera Investment ServicesMunicipal Bonds4.400%3.221%04/11/201907/01/2025 500,000.00 536,740.00 539,101.11 (2,361.11) 39,101.1107/01/2023 Cetera Investment ServicesMunicipal Bonds5.640%3.007%04/18/201908/15/2025 205,000.00 183,604.15 169,737.95 13,866.20 (35,262.05)N/A Cetera Investment ServicesMunicipal Bonds3.743%2.740%04/18/201909/15/2025 215,000.00 245,175.25 228,334.53 16,840.72 13,334.53N/A Cetera Investment ServicesMunicipal Bonds3.379%1.934%08/19/201910/01/2025 310,000.00 340,500.90 339,739.18 761.72 29,739.18N/A Cetera Investment ServicesMunicipal Bonds5.600%1.186%07/28/202012/01/2025 45,000.00 52,716.15 55,250.55 (2,534.40) 10,250.55N/A Cetera Investment ServicesMunicipal Bonds4.250%3.258%04/11/201901/01/2026 500,000.00 550,020.00 529,769.03 20,250.97 29,769.03N/A Cetera Investment ServicesMunicipal Bonds1.609%1.124%09/24/202004/01/2026 285,000.00 289,625.55 292,370.10 (2,744.55) 7,370.10N/A Cetera Investment ServicesMunicipal Bonds6.690%3.356%04/18/201904/15/2026 60,000.00 52,818.60 47,545.20 5,273.40 (12,454.80)N/A Cetera Investment ServicesMunicipal Bonds5.900%1.451%07/28/202006/15/2026 75,000.00 91,947.00 93,741.75 (1,794.75) 18,741.75N/A Cetera Investment ServicesMunicipal Bonds0.000%1.415%08/13/202007/01/2026 100,000.00 86,368.00 92,037.00 (5,669.00) (7,963.00)N/A Cetera Investment ServicesMunicipal Bonds3.250%2.903%04/18/201908/01/2026 500,000.00 536,370.00 514,790.69 21,579.31 14,790.69N/A Cetera Investment ServicesMunicipal Bonds1.664%1.150%08/27/202009/01/2026 225,000.00 226,273.50 231,696.00 (5,422.50) 6,696.00N/A Cetera Investment ServicesMunicipal Bonds2.150%2.203%07/01/201912/01/2026 40,000.00 41,619.60 40,150.64 1,468.96 150.64N/A Cetera Investment ServicesMunicipal Bonds2.350%2.191%07/01/201912/01/2026 500,000.00 530,435.00 505,385.00 25,050.00 5,385.00N/A Cetera Investment ServicesMunicipal Bonds2.375%1.816%09/04/201912/01/2026 90,000.00 95,008.50 93,395.70 1,612.80 3,395.70N/A Cetera Investment ServicesMunicipal Bonds3.000%1.991%08/19/201902/01/2027 50,000.00 55,195.00 53,551.00 1,644.00 3,551.00N/A Cetera Investment ServicesMunicipal Bonds3.150%2.034%08/19/201903/15/2027 100,000.00 110,777.00 109,138.50 1,638.50 9,138.50N/A Cetera Investment ServicesMunicipal Bonds3.332%3.120%04/18/201904/15/2027 500,000.00 572,370.00 507,783.94 64,586.06 7,783.94N/A Cetera Investment ServicesMunicipal Bonds3.553%2.289%08/19/201905/01/2027 55,000.00 60,915.80 60,468.04 447.76 5,468.0405/01/2026 Cetera Investment ServicesMunicipal Bonds3.865%2.470%08/19/201905/01/2027 55,000.00 62,822.65 60,986.48 1,836.17 5,986.4805/01/2025 Cetera Investment ServicesMunicipal Bonds3.000%3.101%05/18/202009/01/2027 65,000.00 70,389.80 69,180.58 1,209.22 4,180.5809/01/2025 Cetera Investment ServicesMunicipal Bonds2.817%2.817%09/25/201910/01/2027 35,000.00 29,030.05 27,969.55 1,060.50 (7,030.45)05/01/2025 Cetera Investment ServicesMunicipal Bonds3.230%1.828%08/19/201905/15/2027 145,000.00 164,227.00 160,827.31 3,399.69 15,827.31N/A Cetera Investment ServicesMunicipal Bonds3.270%2.141%08/19/201903/15/2028 155,000.00 170,341.90 170,805.09 (463.19) 15,805.0909/15/2027 Cetera Investment ServicesMunicipal Bonds2.974%2.574%11/07/201904/01/2028 75,000.00 80,847.00 77,253.00 3,594.00 2,253.00N/A Cetera Investment ServicesMunicipal Bonds3.140%2.004%08/19/201908/01/2028 500,000.00 556,035.00 547,105.00 8,930.00 47,105.0008/01/2027 Cetera Investment ServicesMunicipal Bonds3.000%2.199%05/19/202008/15/2028 90,000.00 95,716.80 95,401.80 315.00 5,401.8008/15/2025 Cetera Investment ServicesMunicipal Bonds3.000%1.942%08/19/201906/01/2029 115,000.00 133,781.80 125,961.80 7,820.00 10,961.80N/A Broker Total73.5% 9,079,000.00 9,700,123.76 9,518,512.32 178,875.26 439,512.32 TOTAL INVESTMENTS100.0%$ 12,507,000.00$ 13,195,111.16$ 12,946,523.54$ 206,333.33$ 439,523.54 PORTFOLIO BY PRODUCT TYPEMATURITY SCHEDULE 9/30/2020% of8/31/2020% ofMonthlyMaturityCurrent Value% Product TypeTotal ValueTotalTotal ValueTotalChangeLess than 1 year$2,192,326.9716.6% Money Market$42,254.290.3%$302,016.852.3%($259,762.56)1 - 2 years1,630,624.1012.4% CD's2,438,852.8818.5%2,441,178.9418.9%(2,326.06)2 - 3 years1,485,634.0611.3% Government Bonds1,016,616.417.7%771,744.316.0%244,872.103 - 4 years 1,285,760.859.7% Municipal Bonds9,697,387.5873.5%9,402,641.8572.8%294,745.734 - 5 years1,544,612.5811.7% TOTAL$13,195,111.16100.0%$12,917,581.95100.0%$277,529.215+ years5,056,152.6038.3% TOTAL$13,195,111.16100.0% aƚƓĻǤ ağƩƉĻƷ/5γƭ υЏͲЉЉЉͲЉЉЉ͵ЉЉ Љ͵ЌіЊБ͵Ўі υЎͲЉЎЏͲЊЎЌ υЎͲЉЉЉͲЉЉЉ͵ЉЉ υЍͲЉЉЉͲЉЉЉ͵ЉЉ υЌͲЉЉЉͲЉЉЉ͵ЉЉ υЋͲЊВЋͲЌЋА υЋͲЉЉЉͲЉЉЉ͵ЉЉ υЊͲЏЌЉͲЏЋЍ υЊͲЎЍЍͲЏЊЌ υЊͲЍБЎͲЏЌЍ υЊͲЋБЎͲАЏЊ υЊͲЉЉЉͲЉЉЉ͵ЉЉ aǒƓźĭźƦğƌ .ƚƓķƭ DƚǝĻƩƓƒĻƓƷ .ƚƓķƭ АЌ͵Ўі А͵Аі υЉ͵ЉЉ \[Ļƭƭ ƷŷğƓ ЊЊ Ώ Ћ ǤĻğƩƭЋ Ώ Ќ ǤĻğƩƭЌ Ώ Ѝ ǤĻğƩƭЍ Ώ Ў ǤĻğƩƭЎњ ǤĻğƩƭ ǤĻğƩ ELECTRIC DIVISION Operating Revenue September 2020 CLASSAMOUNTKWH$/KWH Street Lights$0.387$0.05429 Electric Residential Service$400,304.913,766,811$0.10627 All Electric Residential Service$13,691.63120,919$0.11323 Electric Small General Service$134,161.471,316,066$0.10194 Electric Large General Service$589,671.276,528,150$0.09033 Electric Large Industrial Service$748,492.719,637,000$0.07767 Total$1,886,322.37 21,368,953$0.08827 Power Adjustment$0.00166 Rate Without Power Adjustment$0.08661 Electric Division Year-to-Date 2020 $ Amount2019 $ Amount2020 KWH/102019 KWH/10 24,000,000 23,000,000 22,000,000 21,000,000 20,000,000 19,000,000 18,000,000 17,000,000 16,000,000 15,000,000 14,000,000 13,000,000 12,000,000 11,000,000 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Street LightsResidentialAll Elec.Small Gen.Large Gen.LargeFor Resale Total Resid.Srv.Srv.Industrial NOTE: Sales for resale includes capacity sales, market sales and Transalta sales. NATURAL GAS DIVISION Operating Revenue SEPTEMBER 2020 CLASSAMOUNTMCF$/MCF Residential$140,421.799,567$14.67772 Commercial$99,482.099,268$10.73393 Large Industrial$28,970.303,382$8.56603 Large Industrial Contracts$175,958.0746,579$3.77763 Total$444,832.2568,796$6.46596 Fuel Adjustment-$0.74000 Rate Without Fuel Adjustment$7.20596 Natural Gas Division Year-to-Date 2020 $ Amount2019 $ Amount2020 MCF2019 MCF 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Gas ResidentialGas CommercialLarge IndustrialLarge Industrial Total Contracts HUTCHINSON UTILITIES COMMISSION Board Action Form Agenda Item: Review Policies Presenter: Agenda Item Type: Jeremy Carter Review Policies Time Requested (Minutes): 5 Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: As part of HUC's standard operating procedures, a continual policy review is practiced. This month, the following policies were reviewed and no changes are recommended on these policies at this time: i. Security Light Rental Rate to Furnish and Maintain Fixture ii. Electric Service Requirements & Charges iii. Temporary Service- Electric iv. Temporary Service in Case of Underground Failure v. Electric Meter Placement vi. Sealing of Meters Electric vii. Meter Testing - Electric viii. Right-of-Way Clearing ix. Tree Removal of Trimming x. Electric xi. Natural Gas Service Requirements & Charges xii. Temporary Service Natural Gas xiii. Natural Gas Meter Requirements & Placement xiv. Meter Testing Natural Gas xv. Natural Gas Service Work xvi. Natural Gas BOARD ACTION REQUESTED: None Fiscal Impact: Included in current budget: Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: SERVICE POLICIES -ELECTRIC Security Light Rental Rate to Furnish and Maintain Fixture HIGH PRESSURE SODIUM: Monthly Monthly Lamp Size Charge Lamp Size Charge 150 watt metered $3.00 150 watt unmetered $ 7.00 250 watt metered $3.50 250 watt unmetered $10.00 Lights will be dusk to dawn type with photo control and will be installed on existing pole in the area. If a new pole is needed, customer will pay for the pole and installation. All new installations will be High Pressure Sodium. All rates subject to power cost adjustment. Electric Service Requirements and Charges HUC will require a 24-hour notice, a copy of the State Board of Electricity Certificate of Inspection, and an established account prior to installing a meter and making the final connection. HUC shall not install any facilities until all affected properties are within 6 inches of final grade. Installation of Any Electric Services November 1 Through March 31 The final determination on installation of electric services shall be made by HUC. New Single-Family Dwelling Service Size: 200 Amperes or less Single-family dwelling customers will be 240/120 volt single-phase service. HUC shall furnish and install the underground conductors to serve the single-family home with a one-year warranty after installation date. The underground service is the property of the homeowner at date of installation. (4/0-2/0-4/0 URD): Minimum $300.00 Installation Charge up to 100 ft.; additional $2.00/ft. in excess of 100 ft. The customer or their contractor shall provide and install a 200A, ringless meter socket with lever bypass (See meter requirement/placement section). New Single-Family Dwelling Service Size: Greater than 200 Amperes Single-family dwelling customers will be 240/120 volt single-phase service. Current transformer metering is required. HUC shall furnish the current transformers, meter socket and meter (See meter requirement/placement section). The customer or their contractor shall provide the current transformer housing and facilities, install the current transformers, mount the meter socket and provide an empty 1-¼ inch conduit to the meter socket. HUC shall install the meter wiring and meter. No current transformer metering will be allowed in the power transformer secondary compartment. Bar type current transformers will be used. Provisions for voltage connections for the meter must also be provided. The customer will be responsible for installing the service to the utility transformer or pedestal location. HUC will be responsible to make all secondary connections in the transformer. Transformer secondary connections will be limited to a maximum of four conductors per phase with a maximum size of 750 MCM per conductor. If additional conductors are required per phase, the owner or contractor must provide an approved . New Multi-Family Dwelling, Commercial, or Industrial The customer will be responsible for installing the service to the utility transformer or pedestal location. For any services that require current transformer metering, the customer will be responsible to install the conductor from the metering cabinet to the transformer. For any three-phase services, the customer shall furnish the transformer pad and ground grid. The transformer location shall be determined by HUC. HUC will provide the following voltages: 120/208 volts three phase, not to exceed 3,000 amperes without prior approval. 277/480 volts three phase, not to exceed 3,000 amperes without prior approval. 7,970/13,800 volts three phase, with prior arrangements with HUC. HUC will be responsible to make all secondary connections in the transformer. Transformer secondary connections will be limited to a maximum of four conductors per phase with a maximum size of 750 MCM per conductor. If additional conductors are required per phase, the owner or contractor must provide an approved secondary On services greater than 200 amperes at 240/120volts, current transformer metering is required. HUC shall furnish the current transformers, meter socket and meter. The customer or their contractor shall provide the current transformer housing and facilities, install the current transformers, mount the meter socket and provide an empty 1-¼ inch conduit to the meter socket. HUC shall install the meter wiring and meter. No current transformer metering will be allowed in the power transformer secondary compartment. Any service greater than 240 volts, shall require current transformer metering. Bar type current transformers will be used. Provisions for voltage connections for the meter must also be provided. Approved multi-family dwelling meter stacks will be provided by the customer or their contractor. Primary metering at 7,970/13,800 volts will be by special arrangement and approval of HUC. Temporary Service HUC shall bill the customer or their contractor for all related expenses. Temporary Service in Case of Underground Failure When an underground service fails, HUC will furnish a temporary service to the customer at no charge. The customer will have ten working days to repair or replace the service. t time and material rates. If after ten working days, the required maintenance has not been completed or the customer has not contacted HUC to make arrangements to have the service repaired, HUC will remove the temporary service. In the event of frost, the customer will need to contact HUC to make arrangements to have the repair done at a later date. 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 and the customer (or location approved 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 approved by HUC, at the 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, residing, 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 st 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 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 approved by) by HUC. Sealing of Meters Electric meters and current transformer housings, which have been sealed by HUC, shall not be broken or tampered with without the consent of HUC except in emergency cases. HUC shall be notified immediately after a seal has been broken. If HUC is not notified and HUC personnel discover a broken seal, a $10 broken seal charge may be assessed to the customer. Seals will be assigned to each meter/account by color according to the following: Gray Seal Regular Account Red Seal Meter Disconnected for Non-Payment Blue Seal Meter Disconnected by Customer Yellow Seal Request Life Support Equipment Meter Testing HUC will test all meters periodically for accuracy and mechanical condition. All electric meters must be accurate to within 2%, plus or minus, at full and light load. Upon request of the customer, HUC will test the accuracy of an electric meter. If the meter is found to be registering more than 2% fast, there will be no testing charge to the customer. If the meter is found to be accurate within the 2% limit, a $40 trip charge will be billed to the customer. HUC has the right to place special meters on the premises of a customer for expense to the customer. Right-of-Way Clearing HUC shall maintain right-of-way clearance on all overhead and underground facilities. Tree Removal or Trimming Tree removal or trimming for other than right-of-way clearance is the responsibility of the property owner. Please notify HUC with any questions concerning tree removal or trimming. Any repair of damage to the HUC electrical distribution system caused by tree removal or trimming, by the property owner or their representatives will be billed to the property owner. HUC will locate all underground electric distribution and transmission facilities up to the meter at no charge to the customer or landowner. SERVICE POLICIES NATURAL GAS Natural Gas Service Requirements and Charges HUC shall not install any facilities until all affected properties are within 6 inches of final grade. HUC shall furnish and install the underground natural gas service line. The service line to the meter shall remain the property of HUC. Type/Size Fee $300 up to 150 ft. plus Single-family residential $2.00/ft. in excess of 150 ft. $750 up to 100 ft. plus Multi-family/Commercial/Industrial $5.00/ft. in excess of 100 ft. $1500 up to 100 ft. plus Multi-family/Commercial/Industrial $5.00/ft. in excess of 100 ft. Time and Material Expense Industrial Service line length is defined as "distance from customer's property line to metering facilities", or in the instance the distribution main is located in rear easement, "distribution main to metering facilities". No structure or building may be located over natural gas lines or metering facilities. In the event that a structure or building is determined to be located over natural gas facilities, the natural gas facility must be relocated to a mutually agreed upon location. The customer shall be responsible for all costs associated with the relocation. No service line valve or any portion of the natural gas metering facilities may be buried. The customer shall be responsible for all costs incurred in raising all facilities. Hutchinson Utilities Commission shall begin installing excess flow valves, as of April 14, 2017, on all newly installed and replacement service lines serving the following types of services before the line is activated: A single service line to one single-family residence; A branched service line to a single-family residence installed concurrently with the primary single-family residence service line (i.e., a single EFV may be installed to protect both service lines); A branched service line to a single-family residence installed off a previously installed single-family residence service line that does not contain an EFV; Multifamily residences with known customer loads not exceeding 1,000 SCFH per service, at time of service installation based on installed meter capacity, and A single, small commercial customer served by a single service line with a known customer load not exceeding 1,000 SCFH, at the time of meter installation, based on installed meter capacity. Hutchinson Utilities shall install either a manual service line shut-off valve or, if possible, based on sound engineering analysis and availability, an excess flow valve for any new or replaced service line with installed meter capacity exceeding 1,000 SCFH. All new natural gas consumer -owned fuel lines, downstream of the metering facilities, must be pressure tested, prior to the gas meter being set. The test must be verified by an approved inspector. LƓƭƷğƌƌğƷźƚƓ ƚŅ bğƷǒƩğƌ Dğƭ {ĻƩǝźĭĻ \[źƓĻƭ bƚǝĻƒĬĻƩ Њ ƷŷƩƚǒŭŷ ağƩĭŷ ЌЊ Final determination on installation of natural gas service lines shall be made by HUC. Temporary Service HUC does not offer temporary natural gas service. Natural Gas Meter Requirements and Placement HUC shall furnish and install the natural gas meter at no charge to the customer. HUC 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 horizontal 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 services. 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, porches, etc. shall not be constructed over a natural gas meter. Natural gas meters shall not be located where they will be subject to damage, such as adjacent to a driveway or other locations subject to vehicular traffic, 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). intake and exhaust terminations near natural gas metering facilities. Natural gas regulators shall be located - no less than 3 feet from any source of ignition or any source of heat that may damage the facilities. HUC 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 additional restrictions or distances (e.g. multiple meters, etc.). Please contact HUC if you should have any questions regarding your natural gas metering facilities. changes, shall be All natural gas service lines retired due to building demolition, overbuilding, etc. shall be work on natural gas facilities. Estimate is provided by HUC Natural Gas Division when requested. All exceptions require the approval of HUC prior to the start of construction. If violations or deviations are determined, the customer shall be responsible for the cost of the correction. Single Family Dwellings HUC shall provide natural gas to residential customers at the standard 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 6 feet of the front building wall. Front building wall is defined as the wall nearest the street Multi-Family Dwellings/Multiple Business Establishments Delivery pressures greater than 7 inches 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 inches 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. Meter Testing HUC shall periodically test all natural gas meters for accuracy and sound mechanical condition. Meters that have an average intest accuracy of 100, ± 2%, shall be considered accurate. Average accuracy is defined as the average of the open and check flow accuracies. Accounts for which the natural gas meter tests in excess of 102% are subject to a refund. consumption for the previous six month period. Upon request of the customer, HUC shall test the average accuracy of the natural gas Natural Gas Service Work HUC personnel shall perform leak investigation and carbon monoxide testing at no charge to the customer. HUC does not perform service work on customer owned facilities. HUC shall locate all natural gas underground distribution and transmission facilities up to the meter at no charge to the customer or landowner. HUTCHINSON UTILITIES COMMISSION Board Action Form Agenda Item: Approve Policy Changes Presenter: Agenda Item Type: Jeremy Carter Approve Policy Changes Time Requested (Minutes): 5 Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: As part of HUC's standard operating procedures, a continual policy review is practiced. The following revisions to the policies below are recommended. i. Service Policies Electric Rate Schedule ii. Service Policies Natural Gas Rate Schedule BOARD ACTION REQUESTED: Approve Policy Changes Fiscal Impact: Included in current budget: Budget Change: PROJECT SECTION: Total Project Cost: Remaining Cost: SERVICE POLICIES -ELECTRIC Rate Schedule Electric Residential Service Code 10 Available for domestic purposes only, in a single or multiple residence. All newly connected multiple dwelling units shall have one meter per unit, and a house meter. Energy Charge: 8.290 8.070 cents per KWH Monthly Customer Charge: $11.70 14.30 per meter Electric Small General Service Code 30 Applicable to any customer for single or three phase electric service with less than 50 KW demand supplied through one meter at the secondary voltage at that location. At any time the customer demand reaches 50 kilowatts for three consecutive months, the customer will be removed from the Electric Small General Service rate and billed under Electric Large General Service rate. Energy Charge: First 2000 KWH per month --- 9.052 9.023 cents per KWH Over 2000 KWH per month ---8.314 8.196 cents per KWH Monthly Customer Charge: $15.80 18.70 Electric Large General Service Code 40 Code 41 Applicable to any customer for combined power and lighting with a minimum demand of 50 kilowatts for single or three phase electric service supplied through one meter at the secondary voltage at that location. If demand drops below 50 kilowatts for 12 consecutive months, the customer will be removed from Electric Large General Service rate and billed under Electric Small General Service. Demand Charge: $8.00 9.00 per KW Energy Charge: 6.637 6.210 cents per KWH Monthly Customer Charge $53.80 80.70 Minimum Monthly Charge: 75% of the maximum demand charge the maximum demand months. SERVICE AT PRIMARY VOLTAGE: Customer owns/maintains facilities, and service provided at primary voltage a 5% discount will be applied to the energy charge. This adjustment includes a discount for primary metering. HUC owns/maintains facilities, and service provided at primary voltage a 2% discount will be applied to the energy charge. POWER FACTOR PENALTY: A power factor penalty will apply if the customers measured power factor drops below .94. Large Industrial Service Code 50 and 51 Applicable to any customer for combined power and lighting with a minimum demand over 4000 KW during any one month in a 12 property line. The customer will own and m side of the metering transformer. Demand Charge: $9.00 10.00 per KW KVA Energy Charge: 5.680 5.477 cents per KWH Monthly Customer Charge: $150.40 225.60 Power Cost Adjustment - Power cost adjustment is based on the combined costs of purchased power from outside suppliers, fuel (natural gas and fuel oil), and unrecovered or excess revenues from previous month. Computations of power adjustments shall be made monthly. The resultant adjustment, if any, shall be applicable for the month. SERVICE POLICIES NATURAL GAS Rate Schedule Residential Code 60 Available to any customer who uses less than 70 MCF of gas per day. Energy Charge: $8.2447 7.8240 per MCF, or $.0082447 78240 per CF Monthly Customer Charge : $11.30 13.70 per meter Commercial Gas Code 65 Available to any customer who uses less than 200 MCF of gas per day. Energy Charge: $8.5282 8.2482 per MCF, $.0085282 82482 per CF Monthly Customer Charge : $48.10 56.40 per meter Large Industrial Gas Code 89 Code 91 Available to all customers who use in excess of 200 MCF of gas per day. The demand level shall be based on the maximum daily volume (MCF per day) of natural gas delivered to the customer per month. Monthly Demand Charge per Energy Charge of MCF of Billing Demand Gas per MCF Delivered $9.00 8.50 per MCF $8.0390 7.7950per MCF, or $.0080390 77950 per CF Monthly Customer Charge: $145.00 215.00 Minimum Monthly Charge: The demand charge for month. Fuel Cost Adjustment Fuel cost adjustment is based on the combined cost of purchased gas and unrecovered or excess revenues from previous month. Computations of fuel adjustment shall be made monthly. The resulting adjustment, if any, shall be applicable for the month. All rates are subject to fuel cost adjustment. HUTCHINSON UTILITIES COMMISSION Board Action Form Agenda Item: ApproveRevisedSolarArrayRFPandAdvertisementforBid Presenter:Agenda Item Type: JeremyCarter NewBusiness Time Requested (Minutes): 5 Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Basedonthepreliminaryfeedbackreceivedfrommanydevelopersrelatedtotheoriginal RFPandAdvertisementforBidsubmittedHUCisaskingthecommissiontoapprovea revisedRFPandAdvertisementforbidthatwouldallowasecondoptiontobe considered.Therationaleforthissecondoptionisthepricingofthesolararraycanbe reducedbyallowingaportionoftheprojecttobegroundpenetratingwhilestill accommodatingtheeasementarea. Thefirstoptionwouldstillconsistofafullballastedsystemthathasnoground penetratingpoleswithwhichthesolarpanelswouldbeerectedon.Thisoptionwould entailconcreteblocksengineeredspecificallytoholdtheweightandaccommodate sheerwindforce. Thesecondoptionwouldallowagroundpenetratingsolararrayoptionthatwouldhave polesplacedinthegroundwithanchorsandonlyconsistofaballastedportionofthe solararraywithinHUC'sNaturalGasPipelineEasement.Theeasementareais50ft widefromthecenterofthepipeline(25ftoneachside). StaffisrecommendingapprovaloftherevisedRFP&AdvertisementforBidtoallowthe greatestoptionsonpricinganddesign. BOARD ACTION REQUESTED: ApproveRevisedRFPandAdvertisementforBid Fiscal Impact: Included in current budget: Budget Change: No PROJECT SECTION: Total Project Cost: Remaining Cost: Request for Proposal Hutchinson Utilities Commission (HUC) is soliciting proposals from a qualified contractor to design, fabricate, deliver, and install either a Ground Mounted system with a portion of the Ballasted utility-interactive solar photovoltaic system. Provide a company profile that includes: 1) Years the company has been in business, 2) Projects completed in the last 3 years similar in scope and size to the proposed project, 3) Three (3) project references with direct contract information, and 4) Identify the project team that will complete the scope of work. Ground Mounted or Ground Mounted Ballasted Utility-Interactive Photovoltaic System 1. PROJECT IDENTIFICATION 1.1. Project: Ground Mounted or Ground Mounted Ballasted utility-interactive solar photovoltaic system 1.2. Location: Hutchinson Minnesota (Map of location attached) 1.3. HUC contact: Dave Hunstad Electric Transmission/Distribution Manager Office: 320-234-0508 Email: dhunstad@ci.hutchinson.mn.us 2. BACKGROUND 2.1. Objective. Contractor shall provide a direct purchase total necessary equipment, materials and design, manufacturing, and installation services for the installation of either a Ground Mounted system with a portion of the system ballasted in Ballasted utility- interactive solar photovoltaic system. The system shall fill the allowable buildable area of the property and be able to produce a minimum of 1,100,000 kWh/AC annually. The contractor should prepare system summary detailing applicable equipment/size and predicted system energy production (kWh). 2.2. Scope. The contractor shall perform all professional services as necessary to provide Hutchinson Utilities Commission (HUC) with a complete design package including the requirements outlined in this Statement of Work. The contractor shall install the project such that it is operational and compliant with all applicable standards, building codes, UTILITY interconnection requirements, and STATE requirements. The contractor shall include specifications, calculations and drawings in the design package, and turn it over to HUC. After approval by HUC of the final design package, the contractor shall provide all necessary construction to successfully complete the photovoltaic system installation. 2.2.1. Design Guidelines for a Ground Mounted or Ground Mounted Ballasted utility- interactive solar photovoltaic system. . Њ Design Guidelines for Ground-Mounted or Ground Mounted Ballasted PV. The contractor shall develop a design for a new photovoltaic system at 250 Hackbarth St SE Hutchinson MN 55350. See attached drawings. It is the responsibility of the contractor to assess site topography and geotechnical attributes to estimate costs related to project installation. Mounting system shall either be ballasted on the surface or ground penetrating in area. Mounting system design needs to meet applicable local building code requirements with respect to snow, wind, and earthquake factors. Ground cover and vegetation management (Pollinator friendly) shall be included in the proposal. Storm water management and erosion control management plan shall be included in the proposal. orientation or azimuth shall be within 20-30 degrees of due south. Chain link fencing shall be provided and installed to surround the array. Gate shall be included in the proposal. All lines interconnecting PV arrays to point of interconnection shall be underground. 2.2.2. Performance Criteria. The following performance criteria shall be met for all arrays: Power provided shall be either 208V, 480V or 13.8 kV three phase compatible with the onsite distribution system. Proposal shall provide estimated energy delivery for each array, for each month of the year and total for the year at the delivered voltage (208V, 480V or 13.8 kV). The estimated annual energy delivery for all arrays shall be a minimum of 1,100,000 kWhAC/year at point of interconnection (POI). The STC-rated power value will be entered into PVWatts (http://pvwatts.nrel.gov/) using the nearest weather file to determine estimated energy delivery in kWh AC. A default value for the system losses of 14% shall be used. PV array shall mean one or more PV modules having that same orientation and on the same maximum power point tracking (MPPT) system. Every array with differing orientation shall have a separate MPPT system. All PV hardware components shall be either stainless steel or aluminum. PV structural components shall be corrosion resistant (galvanized steel, stainless steel, composites, or aluminum). The project, including supports and power conductors, shall not interfere with water drainage Ͳ existing electrical infrastructure and planned areas for future installation of equipment shown on drawings. 2.2.3. Production Metering. The project shall have: At least one production meter at POI. 2.2.4. Construction. Perform all construction necessary for the successful installation of the system based upon the design generated from 2.2.1., 2.2.2., and 2.2.3. Ћ 2.3.Technical Requirements and Reference Materials 2.3.1. Code Compliance. Installation and equipment shall comply with applicable building, mechanical, fire, seismic, structural and electrical codes. Only products that are listed, tested, identified, or labeled by UL, FM, ETL, or another Nationally Recognized Testing Laboratory shall be used as components in the project. Non-listed products are only permitted for use as project components when a comparable useable listed component does not exist. Non-listed products proposed for use as components must be identified as such in all submittals. The contractor shall use project components that are or are made of materials that are recyclable, contain recycled materials, and that are EPA or Energy Star rated if they are available on the market. The publications listed below form a part of this document and are hereby incorporated by reference: National Electrical Code (NEC) UL 1703 Flat Plate PV Modules and Panels UL 1741 Standard for Static Inverters and Charge Controllers for Use in Photovoltaic Power Systems FM Approved Fire Protection Tests for Solar Component Products IEC 62446 Grid Connected Photovoltaic Systems- Minimum Requirements for System Documentation, Commissioning Tests, and Inspections Other technical codes that shall apply include: ASME PTC 50 (solar PV performance) ANSI Z21.83 (solar PV performance and safety) NFPA 853 (solar PV systems near buildings) IEEE 1547 (interconnections) ASCE/ SEI-7 American Society of Civil Engineers Loads NRCA National Roofing Contractors Association 2.4. Roles and Responsibilities. 2.4.1. Contractor. The contractor is required to provide: Design concepts Construction documents and engineering calculations that are signed and sealed by a licensed architect or engineer Submittals for materials and products Construction materials, equipment and labor Design and construction supervision / contract management Quality control plan (QCP) Safety plan Inspections and tests (per QCP) Manuals (design calculations, operation/maintenance, shop drawing, etc.) Commissioning of project Ќ Mentoring and training staff for operation and maintenance Web-based monitoring system for 10 years 2.4.2. Hutchinson Utilities Commission will: Review for approval design submittals and QCP Witness inspections and test witnesses to verify attainment of performance requirements Make progress payments for design / construction as agreed 3. PROPOSAL CONCEPT DRAWINGS AND SPECIFICATIONS SUBMISSIONS 3.1. Concept Drawings. The contractor shall provide HUC with concept drawings with the proposal. The drawings must indicate the proposed location of the PV array(s) and access points along with a one-line electrical diagram showing inverters, transformers, meters, and interconnection locations. All drawings shall be submitted with dimensions shown in English units. 3.2. Concept Information. The proposal shall include major equipment information, proposed installation/interconnection information, applicable incentive information, and performance characteristics of the system. Identify an appropriate location for the solar PV inverter equipment and its related components and environmental control systems that will meet the following criteria: Ease of maintenance and monitoring Efficient operation Low operating losses Secured location and hardware Compatibility with existing facilities Avoidance of flood-prone areas Visual harmony El Equipment Information: System description Layout of installation Selection of key equipment and layout of equipment Performance of equipment components, and subsystems Specifications for equipment procurement and installation All engineering associated with structural and mounting details Controls, monitors, and instrumentation Operation and maintenance service plan Installation Interconnection Information: Solar electric array orientation (degrees) Ѝ Solar electric module tilt (degrees) Electrical grid interconnection requirements Integration of solar PV system with other power sources System type and mode of operation (utility interactive) Performance Characteristics Shading calculation documentation Total system output Estimated kWh/month per array (shown over a 12 month period) Warranties and guarantees Applicable Incentives Identify all applicable incentives Interconnection Agreement Provide confirmation that the PV systems will be designed to comply with applicable UTILITY interconnection requirements. 4. DESIGN SERVICES Solar PV system shall be designed and engineered to maximize the solar energy resources, taking into site, available solar resources, existing site conditions, proposed future site improvements, and other relevant factors. Design Services for this project shall require a schematic design submission, a design development submission, a check set submission and a construction document submission. A final set of as-built drawings shall also be provided to HUC. These submissions shall be delivered to HUC based on the project schedule submitted and approved by HUC. The design package shall include the following details (4.1-4.6). 4.1. Timeline/Project Schedule. Site visit can be scheduled in person or virtual any time th prior to RFP due date. will be due 10:00 AM December 7 2020. Project th completion and commissioning no later than October 6 2021. 4.2. Post Award Conference. After receipt of the contract award. The meeting will be attended by HUC team members At a minimum, the representative of any subcontractor performing over 25% of the work must attend. The meeting will be held at the project location. The purpose of the meeting will be to discuss schedule. A walk-through of the site will occur at the end of the meeting. 4.3. Specifications. A full set of specifications shall not be required for this project. However, specifications that express all information and demonstrate sufficient detail so as to direct Ў the construction work outlined in this Statement of Work shall be required. The specifications package shall be coherent enough that any contractor not familiar with the project would be able to construct the project design. The specifications shall include all equipment information, proposed installation and interconnection information, and performance characteristics of the system. 4.3.1. All drawings, estimates, calculations, and specifications shall be in English units. 4.4. Construction Drawings 4.4.1. Each drawing shall indicate project title, project number, array identification and location, A/E firm, A/E's address and/or phone number, contract number, drawing title, drawing type, drawing number, and key plan. A cover sheet shall be provided and shall include a list of the drawings, legend, vicinity map, and location map in addition to all items required for each drawing. Each A/E submission shall be clearly dated and labeled (e.g. 75% Design Development Submission, 100% Check Set Submission, Construction Document Submission, As-Built Drawings, etc.). Each drawing sheet submitted shall include a graphic scale in the lower right-hand portion of the sheet. The final set shall be stamped by a registered engineer and/or registered architect for the state in which the building/carport is located. At a minimum, the following drawings are required: Site plan including utility locations and connections shall show staging and phasing requirements. Electrical plans including single line diagram and utility interconnection. Electrical details. Array support and mounting details. Any drawings that may be required to install a complete project. 4.4.2. The contract documents shall sufficiently define the Statement of Work and shall stand on their own. 4.5. Calculations. The contractor will provide the following calculations. 4.5.1. System Electrical Calculations. Provide with design development and again with 100% check set. PVWatts calculation System energy production calculation showing estimated monthly and yearly energy output for each array Energy value and project cash flow 4.6. Registration Seals. Each final working drawing and each submitted specification and calculation document shall be signed by, bear the seal of, and show the state certificate number of the architect and/or engineer who prepared the document and / or is responsible for its preparation. Џ 5.DESIGN SUBMISSIONS Awarded contractor will secure from governing agencies and the utility company all required rights, permits, approvals, and interconnection agreements at no additional cost to HUC. The awarded Contractor will complete and submit in a timely manner all documentation required to qualify for available rebates and incentives. 5.1. Design Reviews. For each design / drawing submissions, HUC reserves the right to make comments and request changes after the receipt of the submission. Reviews will be made by HUC staff. As part of its review, HUC may offer submission reviews to local code officials. HUC shall provide review comments within fourteen (14) calendar days of receipt of the 75% Design Development Submission and the 100% Check Set Submission. 5.2. Purpose. HUC will review the contractor design submissions to verify adherence to contract requirements. Design reviews by HUC are not to be interpreted as resulting in an approval of the contractor's apparent progress toward meeting contract requirements but are intended to discover any information that can be brought to the contractor's attention that might prevent errors, misdirection, or rework later in the project. The contractor shall remain completely responsible for designing, constructing, operating and maintaining the project in accordance with the requirements of this Statement of Work. 5.3. Resolution of Comments. The contractor shall respond to all design review comments in writing, indicating one of the following: (1) adoption and action taken, (2) adoption with modifications and action taken, (3) alternative resolution and action taken, or (4) rejection. In cases other than unqualified adoption, the contractor shall provide a statement as to why the reviewer's comment is inappropriate. If the contractor believes that any HUC design comments or requested changes will result in a change in the contract cost, they shall notify HUC within seven calendar days of receiving the comment(s) and provide a detailed cost estimate of anticipated contract modifications. Rejection items shall not go forward to the construction phase until adequate resolution to the rejected item has been approved by HUC. Design review comments shall not relieve the contractor from compliance with terms and conditions of this contract. The contractor's comment resolution shall be transmitted to HUC within seven (7) calendar days of comment receipt and incorporate discussions from the scheduled design comment review meetings. 6. UTILITY INTERCONNECTION AGREEMENT 6.1. The contractor shall coordinate with HUC to ensure that the project satisfies all HUC criteria for interconnection of the project to the HUC electric distribution system. This includes coordinating all negotiations, meeting with HUC, design reviews, and participating in any needed interaction between HUC and the Contractor. 6.2. The contractor is responsible for preparing required submissions for obtaining the Net Energy Metering (NEM) and interconnection agreement from the utility. HUC will sign the NEM and interconnection agreements, not the contractor. 6.3. The contractor shall manage interconnection and startup of project in coordination with the Site and HUC. А 7.QualityControl Plan 7.1. Content. For each performance and installation requirement, the QCP shall identify: item/system to be tested, exact test(s) to be performed, measured parameters, inspection/testing organization, and the stage of construction development when tests are to be performed. Each inspection/test shall be included in the overall construction schedule. The contractor is not relieved from required performance tests should these not be included in the plan. The QCP is intended to document those inspections and tests necessary to assure HUC that product delivery, quality and performance are as required. It also serves as an inspection coordination tool between the contractor and HUC. An example of these inspections/tests is the final test/inspection for overall performance compliance of the system. Results from tests and inspections shall be submitted within 24 hours of performing the tests and inspections. At a minimum, the QCP should conform to Systems - Minimum Requirements for System Documentation, Commissioning Tests, Performance tests will be conducted at the final commissioning/acceptance testing, and one year after the acceptance date. Performance tests will include I-V curve traces for all PV strings. For project acceptance, measured performance at maximum power point must be at least 90% of expected performance, which will be adjusted for concurrently measured cell temperature and plane of array (POA) irradiance. This can be accomplished using a current industry standard I-V curve tracer with capability to compare measured PV string I-V curves with nameplate performance of PV string compensated for concurrent cell temperature and POA irradiance measurements. If performance is less than 90% at the one year performance tests (measured using the same method as for project acceptance), contractor shall promptly troubleshoot and correct any malfunction or issues as necessary to return project to 90% measured performance or better. The contractor shall supply HUC with detailed documentation of malfunction or errors and all corrective actions taken. 7.2. Submissions. The QCP shall be prepared and submitted within 21 calendar days of the post award conference meeting and prior to any construction on-site. The QCP may be rejected as incomplete and returned for resubmission if there is any performance, condition or operating test that is not covered therein. 7.3. Updating. During construction, the contractor shall update QCP if any changes are necessary due to any changes or schedule constraints. HUC shall be notified immediately of any schedule and/or procedural changes. 8. SOLAR ELECTRIC MODULE ARRAY 8.1. Photovoltaic Modules 8.1.1. PV modules shall be a commercial off-the-shelf product, shall be UL listed. Compliant Photovoltaic Modules to be eligible for Construction Specifications Institute Б (CSI), and and as specified herein. 8.1.2. The PV modules shall be installed such that the maximum amount of sunlight available year-round on a daily basis should not be obstructed. All projects must include documentation of the impact from any obstruction on the seasonal or annual performance of the solar electric array. 8.1.3. The solar electric system shall produce the minimum annual AC energy output. If the system is proposed to produce more than the minimum required energy output to energy. The output will be adjusted if the actual yearly solar insulation received is less than that indicated by PVWatts. A normalizing calculation will be made to correct the output, so a contractor is not penalized for an extremely cloudy year. 8.1.4. System wiring shall be installed in accordance with the provisions of the NEC. 8.1.5. All modules installed in a series string shall be installed in the same plane/orientation. 8.1.6. PV modules shall have a 25-year limited warranty that modules will generate no less than 80% of rated output under STC. PV modules that do not satisfy this warranty condition shall be replaced. 8.1.7. Panel installation design shall allow for the best ventilation possible of panels to avoid adverse performance impacts. 8.1.8. Provide HUC with 1% extra PV panels. 8.1.9. Warranty. module will generate less than 90% of its specified minimum power when purchased. PV modules shall have a 25-year limited warranty guarantying a minimum performance of at least 80% of the original power for at least twenty-five (25) years. Measurement made under actual installation and temperature will be normalized to standard test conditions using the temperature and coefficients published in the module specifications. 8.2. Inverter and Controls 8.2.1. Each inverter and associated controls shall be properly installed according to 8.2.2. Inverters shall be commercial off-the-shelf product, UL listed. 8.2.3. The inverter shall have at a minimum the following features: UL/ETL listed Peak efficiency of 96% or higher Inverter shall have operational indicators of performance and have built-in data acquisition and remote monitoring. В The inverter shall be capable of parallel operation with the existing AC power. Each inverter shall automatically synchronize its output waveform with that of the utility upon restoration of utility power. 8.2.4. Warning labels shall be posted on the control panels and junction boxes indicating that the circuits are energized by an alternate power source independent of utility- provided power. 8.2.5. Operating instructions shall be posted on or near the system, and on file with facilities operation and maintenance documents. 8.2.6. Provide detailed lock out /tag out instructions for all equipment. 8.2.7. Power provided shall be compatible with onsite electric distribution systems. Install inverters and control panels in most optimum locations with appropriate environmental protection. They shall be shaded from direct sun from 10 a.m. to 6 p.m. in the months of June to August and be able to be secured. 8.2.8. The inverter and system shall utilize an astronomical timer or other means to shut down the inverter during night time to avoid energy usage at night. 8.2.9. Warranty. A 10- 8.3. Control Panel to Solar Electric Array Wire Runs . 8.3.1. All field electrical devices shall have the capability to be locked as appropriate. 8.4. PV Monitoring 8.4.1. The PV systems installed shall provide for monitoring by HUC as well as by the general public on a vendor provided website. The public site is intended for education and outreach regarding renewable energy production and information on avoided greenhouse gas production. The public site shall be maintained for ten years. 8.4.2. Monitor by an IP addressable device and displayed graphically in a user-friendly manner the following parameters: AC energy Solar irradiance Show status of all equipment Provide electrical one line showing operation and performance of all equipment Data shall be available both in real time and in archived in 15-minute averages. All monitoring hardware and monitoring equipment shall be provided by the contractor. ЊЉ System shall also include metering for remote data collection and display on vendor-provided web site of system performance. System performance shall allow display during different monitoring periods from one hour to one year. 8.4.3. Meters shall be installed in the main distribution panel (MDP). HUC will supply the meter. 8.5. Transformers 8.5.1. HUC will provide necessary pad mount transformers at the POI. 8.6. Structural Requirements 8.6.1. All structures, including array structures, shall be designed in accordance with all applicable state and local codes and standards. 8.6.2. The contractor shall provide structural calculations, stamped by a licensed professional structural engineer in the appropriate state. 8.6.3. All structural components shall be non-corrosive (galvanized steel, stainless steel or aluminum). All hardware shall be stainless steel or aluminum. All components shall be designed to obtain a minimum 40 year design life and include a 10 year warranty. 8.7. Lightning Protection. Provide surge protection on all electrical systems. 8.8. PV System Installation Warranty. The PV systems shall carry a ten (10) year workmanship warranty by both the manufacturer and the installer including parts and labor. 9. INSPECTIONS AND TESTS 9.1. General. The contractor shall perform inspections and tests throughout the construction process including: existing conditions/needs assessments, construction installation placement/qualification measurements and final inspections/tests performance q payments as identified QCP. 9.2. HUC Witness. All inspections and tests, to verify documented contract assumptions, to establish work accomplishment, or to certify performance attainment shall be witnessed by HUC and/or construction management (CM) and coordinated through the QCP. 9.3. Final Inspections and Tests. In order to ensure compliance with provisions of the NEC, an inspection by a licensed electrical inspector is mandatory after construction is complete. ЊЊ Tests shall include a commissioning of the array. Commissioning tests shall conform with the requirements in Section 7 (QCP). Commissioning shall be performed for the entire PV system. This data shall be used to confirm proper performance of the PV system. 9.4. Documentation. Inspections/tests required in the QCP shall result in a written record of data/observations. The Contractor shall provide documents containing all test reports/findings. Test results shall typically include: item/system tested, location, date of test, test parameters/measured data, state of construction completion, operating mode, contractor inspector/ HUC witness, test equipment description and measurement technique. 10. Project Closeout 10.1. Preparation for Final Inspection and Tests. The following steps shall be taken to assure the project is in a condition to receive inspections and tests. Finalize record drawings and mas-b 10.2. Record Drawings. The contractor shall maintain on site the working record drawings of all changes/deviations from the original design. Notations on record drawings shall be made in erasable red pencil or other color to correspond to different changes or categories of work. Marked-up drawings shall always be maintained at the c site construction office, available for HUC. Record drawings shall note related change order designations on impacted work. When shop drawings indicate significant variations over design drawings, shop drawings may be incorporated as part of record drawings. Review of record drawings may be required before monthly payments can be processed. 10.3. As-Built Drawings and Specifications. The Contractor shall provide "as-built drawings" and documents based upon actual site installation. Should HUC determine that variations exist between finished construction and the as-built drawings, the contractor shall correct drawings to the satisfaction of HUC. The contractor shall submit a hard copy and an electronic copy - drawings and specifications as CAD and PDF files. 10.4. Warranties and Guarantees. Submit specific warranties and guarantees, final certifications and similar documents to HUC upon substantial completion and prior to final payment. Include copies with operations and maintenance manual. All warranties shall be signed by a principal of the c 10.5. Maintenance Manual. Provide a detailed operation and maintenance manual including diagram of system components, description of normal operation; description of operational indicators and normal status of each, table of modes of operation, safety considerations, preventative maintenance requirements, troubleshooting and corrective actions; sources of spare parts and cut-sheets for all components. The contractor shall ЊЋ prepare a hard copy and an electronic copy containing the detailed Maintenance Manual. Submit to HUC. 10.6. Spare Parts. The contractor shall provide a recommend list of spare parts 10.7. Demonstration and Training. Provide HUC with approved training for designated personnel in the operation of the entire photovoltaic energy system, including operation and maintenance of inverter(s), transfer switches, panel board, disconnects and other features as requested by HUC. Instruct the designated HUC personnel in removal and installation of panels, including wiring and all connections. Provide HUC with written instructions and procedures for shut-down and start-up activities for all components of the system. 11. Operations and Maintenance Service. 11.1. Provide operation and maintenance of the solar array systems for one year. Work shall include all manufacturer recommended maintenance as well as a 12 month performance commissioning as outlined in section 7.1 (QCP). Hutchinson Utilities Commission shall be invited to witness all performance commissioning. A maintenance log shall be maintained to note dates, equipment and issues being resolved. Contractor should be available within 48 hours to respond to natural disasters (extreme storm, hail, wind events) to inspect array for damage. 12. Bid Bond. Each proposal should be accompanied by a Bid Bond, made payable to the Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson, Minnesota, in the amount of five per cent (5%) of the Bid, as a guaranty that the Bidder will enter into a proposed Contract and provide a Performance Bond after his/her Bid shall have been accepted. 13. Performance Bond. The successful Bidder shall furnish a Performance Bond in an amount equal to one hundred per cent (100%) of the Contract price and a Certificate of Insurance with appropriate limits to the Owner prior to the approval of the Contract. No Bidder may withdraw his/her Bid or Proposal for a Period of thirty (30) days after the submittal deadline date. At the aforementioned time and place, or at such later time and Place as the Owner then may fix, the Owner will act upon Proposals received and with its sole discretion may award Contract(s) for the furnishing of said equipment and professional services. 14. Certificate of Insurance. 14.1 Contractor Liability Insurance The Contractor shall maintain the following insurance, and shall file certificates of such insurance with the Owner. The Certificate of Insurance should list Hutchinson Utilities Commission as additionally insured on the certificate. (a) : ЊЌ The Contractor shall maintain the following insurance, and, shall file certificates of such insurance with the Owner. (b) Insurance Required by Employee Benefit Acts: The Contractor shall maintain insurance required under any other employees benefits acts in force or required by law at the place of construction. (c) General and Automotive Liability Insurance: The Contractor shall purchase and maintain comprehensive general liability insurance and comprehensive automobile liability which will protect the Contractor from claims for damage because of bodily injury, including death, and damage to property, which may arise both out of and during the completion of the operations under a Contract. The insurance shall provide protection against the following hazards: (1) General Liability Hazards: i. Premises- Operations ii. Elevators iii. Independent Contractors- sublet work iv. Completed Operations (products) This coverage shall be carried through completion. v. Contractual Liability- Extended to include the liability assumed under this Contract. (2) Automobile Liability Hazards: i. All owned and hired vehicles General and Automobile Liability Insurance shall be written for not less than the limits specified below. Please notice that property damage insurance shall be on an occurrence basis rather than on an accident basis. Coverage Limits of Liability Automobile Combined single limit $2,000,000 Or Bodily Injury $2,000,000 Each Person $2,000,000 Each Occurrence Property Damage $2,000,000 Each Occurrence General Liability Bodily Injury $2,000,000 Each Person $2,000,000 Occurrence $2,000,000 Aggregate Property Damage $2,000,000 Each Occurrence $2,000,000 Aggregate ЊЍ 15. Hold Harmless Agreement harmless the Owner and their officers, employees and agents fees and litigation expenses, on account of bodily injury, sickness, disease, death and property damage as a resul with this project. It is understood, however, that the Contractor shall assume no ЊЎ Advertisement for Bids for Ground Mounted or Ground Mounted Ballasted Utility-Interactive Photovoltaic System Hutchinson Utilities Commission Hutchinson, Minnesota Notice is hereby given that the Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson, Minnesota, hereinafter referred to as the Owner, will receive th sealed Bids at the Hutchinson Utilities office until 10:00 AM on the 7 day of December, 2020, and will publicly open and read aloud such Bids on the following design and installation: Ground Mounted or Ground Mounted Ballasted Utility-Interactive Photovoltaic System Proposals shall be properly endorsed and delivered in an envelope marked, Utility Scale-Interactive Photovoltaic System and shall be addressed to: Hutchinson Utilities Commission of the City of Hutchinson, 225 Michigan Street SE, Hutchinson, Minnesota 55350. All proposals shall be submitted in duplicate on the Bidder's own letterhead in facsimile of the Proposal Form enclosed in the Specifications, or by utilizing the Proposal Form enclosed with the Specifications by typing the official name of the Bidder at the top of the form. Each proposal should be accompanied by a Bid Bond, made payable to the Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson, Minnesota, in the amount of five per cent (5%) of the Bid, as a guaranty that the Bidder will enter into the proposed Contract and provide a Performance Bond after his Bid shall have been accepted. Page 1-1 The successful Bidder shall furnish a Performance Bond in an amount equal to one hundred per cent (100%) of the Contract price and a Certificate of Insurance with appropriate limits to the Owner prior to the approval of the Contract. No Bidder may withdraw his Bid or Proposal for a Period of thirty (30) days after date of opening of Bids. At the aforementioned time and place, or at such later time and Place as the Owner then may fix, the Owner will act upon Proposals received and with its sole discretion may award Contract(s) for the furnishing of said equipment. Specifications and Plans are available by contacting: Hutchinson Utilities Commission 225 Michigan St SE Hutchinson MN 55350 320-587-4746 The Hutchinson Utilities Commission of the City of Hutchinson, Hutchinson, Minnesota reserves the right to reject any and all bids, or bid irregularities. By________________________________ ________________________, President Date ____________________________ ATTESTED By__________________________________ _________________________, Secretary Date _______________________________ Page 1-2 1105 Legend 235 HUC GAS PIPELINE HUTCHINSON UTILITIES SOLAR SITE LOT EASEMENTS Road ROW PARCELS · FUTURE SOLAR SITE HUC PROPERTY (IF NEEDED FOR SIZE REQUIREMENTS) CONNECTION POINT 50' PIPELINE EASEMENT 1106 250 1106 0 1105