05-30-2007 HUCMRegular Meeting
May 30, 2007
President Walser called the meeting to order at 3:00 p.m.
Commissioner Lenz made a motion to move into closed session. Commissioner Hantge
seconded the motion and it passed unanimously.
Members present for litigation proceedings: President Donald H. Walser; Commissioner
Craig Lenz; Commissioner Robert Hantge; General Manager Michael Kumm; Attorney
Marc Sebora; Director Natural Gas Division John Webster, Recording Secretary Lin
Madson; Dustan Cross with Gislason and Hunter LLP.
Members absent: Vice President David Wetterling; Secretary Dwight Bordson
Members present for the compensation study: President Donald H. Walser, Vice
President David Wetterling arriving at 3:20 p.m.; Commissioner Craig Lenz;
Commissioner Robert Hantge; General Manager Michael Kumm; Attorney Marc Sebora;
Manager Business Division Jan Sifferath; Recording Secretary Lin Madson; Human
Resource Director Brenda Ewing; Wayne Brede with Laumeyer & Associates; Susan
Hansen with Madden Law Office via telephone conferencing.
Member absent: Secretary Dwight Bordson
Commissioner Lenz made a motion to move from closed session back to open session
at 3:45 p.m. Commissioner Hantge seconded the motion and it passed unanimously.
Commissioner Hantge made a motion to approve the minutes of the April 25, 2007
Regular Meeting. Vice President Wetterling seconded the motion and it passed
unanimously.
Commissioner Hantge made a motion to approve the minutes of the May 8, 2007
Special Meeting. Commissioner Lenz seconded the motion and it passed unanimously.
Commissioner Lenz made a motion to ratify the payment of bills in the amount of
$3,690,108.67 (detailed listing in payable book). Vice President Wetterling seconded
the motion and it passed unanimously.
GM Kumm presented the financial statements/budget year-to-date. In June GM Kumm
will update the board with a mid-year report on the work orders. Commissioner Lenz
made a motion to approve financial statements/budget year to date. Vice President
Wetterling seconded the motion and it passed unanimously.
GM Kumm presented resolution 1003 Mutual Aid Assistance. This will qualify HUC to
receive FEMA reimbursement of mutual aid costs through MMUA. Commissioner Lenz
made a motion to approve resolution 1003 Mutual Aid Assistance. Vice President
Wetterling seconded the motion and it passed unanimously.
GM Kumm explained that the purchase power agreement has been an on-again off-
again agreement. Staff has been granted authorization to negotiate a contract. We will
keep pursuing it and update the board throughout the negotiations.
Attorney Sebora said that HUC can provide natural gas services outside the city limits
according to the City Charter. On August 25, 1996, HUC adopted Resolution #151
declaring said commission will not provide new natural gas services outside the
Hutchinson city limits after August 26, 1996. After discussion, Vice President Wetterling
made a motion to rescind Resolution #151. Commissioner Lenz seconded the motion
and it passed unanimously.
John Webster presented three natural gas agreements with New Vision Cooperative.
Attorneys have reviewed these agreements and changes have been made where
necessary. Commissioner Lenz made a motion to approve the Interconnect Agreement
recognizing modifications by staff. Vice President Wetterling seconded the motion and it
passed unanimously. Commissioner Lenz made a motion to approve the Natural Gas
Firm Transportation Capacity Agreement recognizing modifications by staff. Vice
President Wetterling seconded the motion and it passed unanimously. Commissioner
Lenz made a motion to approve the Commodity Agreement recognizing modifications
by staff, and adding language for late payment fees to paragraph 9. Vice President
Wetterling seconded the motion and it passed unanimously.
GM Kumm presented the NERC compliance agreement. This agreement defines the
responsibilities for compliance with mandatory reliability standards. The eight
communities involved will be complying in the same way. Vice President Wetterling
made a motion to approve the NERC Compliance Agreement. Commissioner Lenz
seconded the motion and it passed unanimously.
Steve Lancaster presented requisition 002580. This a carry-over from 2006 and has
been completed. Commission Lenz made a motion to approve requisition #002580 for
labor and materials to finish heat trace monitoring system at plant 2 from Egan
Company. Commissioner Hantge seconded the motion and it passed unanimously.
John Webster presented requisition 002593. Our natural gas main was hit during the
construction of a new church on School Road. Because HUC is not equipped to handle
6 pipe, we had to hire someone to repair it. We will seek reimbursement for the repairs,
labor and etc. Commissioner Hantge made a motion to approve requisition #002593 for
the repair of 6 steel distribution main from Michels Pipeline Construction. Vice
President Wetterling seconded the motion and it passed unanimously.
Commissioner Lenz made a motion to approve the bid tabulation for 1500 ton packaged
hermetic centrifugal liquid chiller from Minnesota Air. Commissioner Hantge seconded
the motion and it passed unanimously.
GM Kumm presented changes to the residential deposit section of the policies and
requirements booklet. Other modifications and changes to the section were discussed.
At the June meeting we will ask for approval to the residential as well as the
commercial/industrial deposit sections, and for approval of the application for utility
service form.
Steve Lancaster presented the advertisement for bids for 3750 KVA transformer. This is
an inventory item serving as a back-up for outages, or for bigger commercial industries
being constructed in Hutchinson as well as a back-up for Warrior Manufacturing.
Commissioner Hantge made a motion to approve the advertisement for bids for 3750
KVA transformer. Vice President Wetterling seconded the motion and it passed
unanimously.
Division reports
Electric Steve Lancaster
We have been generating
Commendation was extended by Commissioner Hantge for the
respectfulness shown by the crews during an outage in the Lewis Ave
area.
Business Jan Sifferath
Health insurance claims should be reaching an end
Medica plan is doing well
Working on CF building
Discussed a hold harmless agreement for contractors using our fenced-in
areas
Gas John Webster
Working on cathodic protection HTI and Ridgewater College shorted out
their fuel lines
Possibility of transporting natural gas to Buffalo Lake ethanol plant
Working with electric department on a program for a pandemic flu
outbreak
Commissioner Lenz asked if the Commissioners could be notified whenever there are
outages or gas line hits.
Legal Update
Attorney Sebora is working on a procedure for our bankrupt accounts. Delinquent
accounts could be submitted to City Council for putting a lien on customers
property tax.
Old Business
a. Commercial deposits will be presented with residential deposits in June for
approval.
b. Transmission Owner Membership in MRES will come before the board in
August.
c. First board meeting for MN Municipal Gas Agency will be the third week in
June.
New Business
Commissioner Hangte had questions on the shared driveway at Plant 1 and
asked for an explanation on Northern Border liability insurance. He also
mentioned that Mayor Cook asked for information on what HUC is doing on wind
generation. GM Kumm explained that this will be an agenda item in June for
discussion.
Commissioner Lenz asked for an explanation of the PUCs concern with our
Powerstat system. He also asked for a copy of the ordinance passed by City
Council on wind generation.
There being no further business, Commissioner Lenz made a motion to adjourn the
meeting at 5:10 p.m. Vice President Wetterling seconded the motion and it passed
unanimously.
_________________________________
Dwight Bordson, Secretary
ATTEST________________________________
Donald H. Walser, President
M
Regular Meeting
May 30, 2007
President Walser called the meeting to order at 3:00 p.m.
Commissioner Lenz made a motion to move into closed session. Commissioner Hantge
seconded the motion and it passed unanimously.
Members present for litigation proceedings: President Donald H. Walser; Commissioner
Craig Lenz; Commissioner Robert Hantge; General Manager Michael Kumm; Attorney
Marc Sebora; Director Natural Gas Division John Webster, Recording Secretary Lin
Madson; Dustan Cross with Gislason and Hunter LLP.
Members absent: Vice President David Wetterling; Secretary Dwight Bordson
Members present for the compensation study: President Donald H. Walser, Vice
President David Wetterling arriving at 3:20 p.m.; Commissioner Craig Lenz;
Commissioner Robert Hantge; General Manager Michael Kumm; Attorney Marc Sebora;
Manager Business Division Jan Sifferath; Recording Secretary Lin Madson; Human
Resource Director Brenda Ewing; Wayne Brede with Laumeyer & Associates; Susan
Hansen with Madden Law Office via telephone conferencing.
Member absent: Secretary Dwight Bordson
Commissioner Lenz made a motion to move from closed session back to open session
at 3:45 p.m. Commissioner Hantge seconded the motion and it passed unanimously.
Commissioner Hantge made a motion to approve the minutes of the April 25, 2007
Regular Meeting. Vice President Wetterling seconded the motion and it passed
unanimously.
Commissioner Hantge made a motion to approve the minutes of the May 8, 2007
Special Meeting. Commissioner Lenz seconded the motion and it passed unanimously.
Commissioner Lenz made a motion to ratify the payment of bills in the amount of
$3,690,108.67 (detailed listing in payable book). Vice President Wetterling seconded
the motion and it passed unanimously.
GM Kumm presented the financial statements /budget year -to -date. In June GM Kumm
will update the board with a mid -year report on the work orders. Commissioner Lenz
made a motion to approve financial statements /budget year to date. Vice President
Wetterling seconded the motion and it passed unanimously.
GM Kumm presented resolution 1003 Mutual Aid Assistance. This will qualify HUC to
receive FEMA reimbursement of mutual aid costs through MMUA. Commissioner Lenz
made a motion to approve resolution 1003 Mutual Aid Assistance. Vice President
Wetterling seconded the motion and it passed unanimously.
GM Kumm explained that the purchase power agreement has been an on -again off -
again agreement. Staff has been granted authorization to negotiate a contract. We will
keep pursuing it and update the board throughout the negotiations.
Attorney Sebora said that HUC can provide natural gas services outside the city limits
according to the City Charter. On August 25, 1996, HUC adopted Resolution #151
declaring said commission will not provide new natural gas services outside the
Hutchinson city limits after August 26, 1996. After discussion, Vice President Wetterling
made a motion to rescind Resolution #151. Commissioner Lenz seconded the motion
and it passed unanimously.
John Webster presented three natural gas agreements with New Vision Cooperative.
Attorneys have reviewed these agreements and changes have been made where
necessary. Commissioner Lenz made a motion to approve the Interconnect Agreement
recognizing modifications by staff. Vice President Wetterling seconded the motion and it
passed unanimously. Commissioner Lenz made a motion to approve the Natural Gas
Firm Transportation Capacity Agreement recognizing modifications by staff. Vice
President Wetterling seconded the motion and it passed unanimously. Commissioner
Lenz made a motion to approve the Commodity Agreement recognizing modifications
by staff, and adding language for late payment fees to paragraph 9. Vice President
Wetterling seconded the motion and it passed unanimously.
GM Kumm presented the NERC compliance agreement. This agreement defines the
responsibilities for compliance with mandatory reliability standards. The eight
communities involved will be complying in the same way. Vice President Wetterling
made a motion to approve the NERC Compliance Agreement. Commissioner Lenz
seconded the motion and it passed unanimously.
Steve Lancaster presented requisition 002580. This a carry-over from 2006 and has
been completed. Commission Lenz made a motion to approve requisition #002580 for
labor and materials to finish heat trace monitoring system at plant 2 from Egan
Company. Commissioner Hantge seconded the motion and it passed unanimously.
John Webster presented requisition 002593. Our natural gas main was hit during the
construction of a new church on School Road. Because HUC is not equipped to handle
6" pipe, we had to hire someone to repair it. We will seek reimbursement for the repairs,
labor and etc. Commissioner Hantge made a motion to approve requisition #002593 for
the repair of 6" steel distribution main from Michels Pipeline Construction. Vice
President Wetterling seconded the motion and it passed unanimously.
Commissioner Lenz made a motion to approve the bid tabulation for 1500 ton packaged
hermetic centrifugal liquid chiller from Minnesota Air. Commissioner Hantge seconded
the motion and it passed unanimously.
GM Kumm presented changes to the residential deposit section of the policies and
requirements booklet. Other modifications and changes to the section were discussed.
At the June meeting we will ask for approval to the residential as well as the
commercial /industrial deposit sections, and for approval of the application for utility
service form.
Steve Lancaster presented the advertisement for bids for 3750 KVA transformer. This is
an inventory item serving as a back -up for outages, or for bigger commercial industries
being constructed in Hutchinson as well as a back -up for Warrior Manufacturing.
Commissioner Hantge made a motion to approve the advertisement for bids for 3750
KVA transformer. Vice President Wetterling seconded the motion and it passed
unanimously.
Division reports
Electric — Steve Lancaster
• We have been generating
• Commendation was extended by Commissioner Hantge for the
respectfulness shown by the crews during an outage in the Lewis Ave
area.
Business — Jan Sifferath
• Health insurance claims should be reaching an end
• Medica plan is doing well
• Working on CF building
• Discussed a `hold harmless' agreement for contractors using our fenced -in
areas
Gas — John Webster
• Working on cathodic protection — HTI and Ridgewater College shorted out
their fuel lines
• Possibility of transporting natural gas to Buffalo Lake ethanol plant
• Working with electric department on a program for a pandemic flu
outbreak
Commissioner Lenz asked if the Commissioner's could be notified whenever there are
outages or gas line hits.
Legal Update
Attorney Sebora is working on a procedure for our bankrupt accounts. Delinquent
accounts could be submitted to City Council for putting a lien on customer's
property tax.
Old Business
a. Commercial deposits will be presented with residential deposits in June for
approval.
b. Transmission Owner Membership in MIRES will come before the board in
J�
August.
C. First board meeting for MN Municipal Gas Agency will be the third week in
June.
New Business
Commissioner Hangte had questions on the shared driveway at Plant 1 and
asked for an explanation on Northern Border liability insurance. He also
mentioned that Mayor Cook asked for information on what HUC is doing on wind
generation. GM Kumm explained that this will be an agenda item in June for
discussion.
Commissioner Lenz asked for an explanation of the PUC's concern with our
Powerstat system. He also asked for a copy of the ordinance passed by City
Council on wind generation.
There being no further business, Commissioner Lenz made a motion to adjourn the
meeting at 5:10 p.m. Vice President Wetterling seconded the motion and it passed
unanimously.
Dwig t Bordson, Secretary
ATTEST
Donald H. Walser, President
L
Adopted May 30, 2007
RESOLUTION 1003
RESOLUTION OF HUTCHINSON UTILITIES COMMISSION
CITY OF HUTCHINSON
Mutual Aid Assistance Resolution
WHEREAS, Hutchinson Utilities Commission, ( "HUC ") operates and
maintains a municipal electric and natural gas utility;
WHEREAS, HUC wishes to cooperate with other cities which own and
operate utility systems and other publicly -owned utility organizations;
WHEREAS, HUC is a member of the Minnesota Municipal Utilities
Association ( "MMUA ") and MMUA has developed a program to encourage and
foster mutual aid between and among Utilities in the event of disasters and
emergencies;
WHEREAS, the Federal Emergency Management agency ( "FEMA ") has
established a rule which provides that FEMA will reimburse mutual aid costs for a
particular disaster or emergency only if mutual aid participants have signed a
written agreement prior to that disaster or emergency;
WHEREAS, prudent and appropriate charges should be established from
time to time which may be paid to HUC for its provision of mutual aid services
and which may be paid to other Utilities which may provide mutual aid assistance
to HUC;
NOW THEREFORE BE IT RESOLVED BY Hutchinson Utilities
Commission;
1. The General Manager is hereby authorized and directed to execute and
deliver the MMUA Mutual Aid Agreement and such other documents
and agreements as may be necessary to implement HUC'S
participation in the MMUA Mutual Aid Program and to qualify for FEMA
reimbursement of mutual aid costs.
2. The managing staff of HUC shall establish reasonable rates for
reimbursement of its labor and equipment cost as contemplated in
FEMA rules, and periodically revise such rates as necessary.
3. HUC will provide mutual aid assistance to other Utilities if management
determines (a) that the reliability and performance of HUC utility
systems will not be materially and adversely affected, (b) the other
Utilities has executed the MMUA Mutual Aid Agreement and (c) the
other Utilities has established rates for reimbursement of their labor and
equipment cost which are reasonably comparable to those established
by HUC.
Adopted by the Hutchinson Utilities Commission this 30th`6ay of May 2007.
J
Dwight Bordson, Secretary
ATTEST !L=j (--
Donald H. Walser, President
I
rl
• "ill'
Adopted August 25, 1996
RESOLUTION 151
RESOLUTION OF HUTCHINSON UTILITIES COMMISSION
CITY OF HUTCHINSON
BE IT RESOLVED, by the Hutchinson Utilities Commission of the
City of Hutchinson, Minnesota, that said commission will not
provide new natural gas services outside the Hutchinson city
limits after August 26, 1996; said Commission will continue to
provide natural gas service outside the Hutchinson city limits
if service was installed before August 26, 1996.
ATTEST:
�l
G. P. Cornell, President
ger Gilmer, Secretary
AGREEMENT DEFINING RESPONSIBILITIES FOR
COMPLIANCE WITH MANDATORY RELIABILITY STANDARDS
This Agreement Defining Responsibilities for Mandatory Reliability Standards
Compliance ( "Agreement ") is made and entered into as of the 22nd day of May, 2007 by and
between Missouri Basin Municipal Power Agency, doing business as Missouri River Energy
Services ( "MRES "), an intergovernmental entity organized under Chapter 28E of the Code of
Iowa and existing under the intergovernmental cooperation statutes of the States of Iowa,
Minnesota, North Dakota, and South Dakota (MRES), and Hutchinson Utilities Commission,
225 Michigan Street SE, Hutchinson, MN 55350 -1905 (Member), a municipal corporation of
the State of Minnesota. MRES and Member are referred to herein as Party or the Parties.
1. Recitals. This Agreement is made with reference to the following facts, among others, which
are true and correct and are expressly binding elements of this Agreement:
1.1. Hutchinson is a member of MRES, and owns and operates a municipal electric utility.
1.2. The federal Energy Policy Act of 2005 (the Act) provides for mandatory electric
reliability standards applicable to all owners, users and operators of the Bulk Electric
System, including MRES and the Member.
1.3. The Federal Energy Regulatory Commission (FERC) has adopted rules, and is in the
process of adopting additional rules, to implement the Act.
1.4. FERC has certified the North American Electric Reliability Corporation (NERC) as
the Electric Reliability Organization (ERO) and industry self - regulating entity
responsible for the development, oversight, and enforcement of mandatory reliability
standards, subject to FERC oversight and regulation in the United States. FERC has
approved NERC's delegations of enforcement and compliance responsibility for
NERC- approved standards to certain regional reliability entities, including the
Midwest Reliability Organization (MRO).
1.5. FERC has approved a number of reliability standards filed by NERC that will become
mandatory, enforceable, and subject to sanctions and penalties on or about June 4,
2007. MRES and Member expect that NERC will be engaged in a comprehensive
effort to modify and clarify the reliability standards over the next few years, including
the applicability of such standards to smaller entities such as Member. For purposes
of this Agreement, "NERC Reliability Standards" shall include applicable regional
reliability standards approved by FERC, as well as FERC- approved NERC reliability
standards and individual requirements within respective reliability standards,
1.6. NERC has established Registration Criteria to be used to determine those entities that
may have a material impact on the reliability of the bulk power system and to which
NERC reliability standards may be applicable. FERC has approved the NERC
Statement of Compliance Registry Criteria (Version 3), and it is being used by the
MRO for registration purposes at this time. The Compliance Registry Criteria is
attached to this Agreement as Appendix A. MRES shall update Appendix A from
time to time as and when the Compliance Registry Criteria is modified or approved
by FERC.
1.7. MRES is required to register with the MRO pursuant to the Compliance Registry
Criteria for those functions for which MRES is obligated to register based on the
operations, activities, equipment and/or facilities, including Bulk Electric System
assets, of MRES and /or Western Minnesota Municipal Power Agency. Member is
required to register with the MRO pursuant to the Compliance Registry Criteria for
those functions for which Member is obligated to register based on the operations,
activities, equipment and /or facilities, including Bulk Electric System assets, of
Member.
1.8. MRES and Member desire to work together to achieve full compliance with
applicable NERC Reliability Standards. It is the desire of MRES and Member to
agree upon a division of compliance responsibilities between them for compliance
with NERC Reliability Standards, and for that purpose the Parties desire that MRES
act as a Joint Registration Organization (JRO).
1.9. This Agreement defines the respective responsibilities of MRES and Member for
compliance with each applicable NERC Reliability Standard, and/or for one or more
requirements within applicable Reliability Standards, for which MRES and/or the
Member must register under Appendix A.
2. Registration. MRES and/or Member are each obligated to register pursuant to the FERC-
approved NERC Reliability Functional Model, Function Definitions and Responsible
Entities, Version 3, February 13, 2007 (Functional Model), based on their respective
operations, activities, equipment and/or facilities, including Bulk Electric System assets.
MRES has prepared a Registration List that identifies the functions for which each Party is
obligated to register, which is attached to and incorporated into this Agreement as Appendix
B. MRES shall update this list from time to time as necessary. The Parties acknowledge that
each will register for the functions that it performs, that each may be required to register for
designated functions for which the other may also register, and that the registration is
separate and distinct from the division of compliance responsibilities set forth in this
Agreement.
3. MRES Direct Compliance Responsibilities. MRES shall be solely responsible for
compliance with those reliability standards identified in Appendix C, which is attached
hereto and incorporated into this Agreement, including payment of any duly imposed
sanctions or penalties for non - compliance with NERC Reliability Standards and specific
requirements within such standards applicable to MRES as the registrant.
4. Member Direct Compliance Responsibilities. Member shall be solely responsible for
compliance with those reliability standards identified in Appendix D, which is attached
Agreement Defining Responsibilities for
Compliance with Mandatory Reliability Standards
Between MRES and Hutchinson Utilities Commission Page 2 of 7
hereto and incorporated into this Agreement, including payment of any duly imposed
sanctions or penalties for non - compliance with NERC Reliability Standards and specific
requirements within such standards applicable to Member as the registrant for such functions.
5. MRES Assumption of Compliance Responsibilities. On behalf of itself and Members,
MRES hereby undertakes sole responsibility for complying with those NERC Reliability
Standards identified in Appendix E, which is attached hereto and incorporated into this
Agreement, including payment of any duly imposed sanctions or penalties for non-
compliance. In the event that NERC or the MRO directs MRES to take specific actions, or
requires MRES to adopt or implement a mitigation plan, with respect to non - compliance with
any NERC Reliability Standard for which MRES has taken responsibility on behalf of itself
and Member as set forth in Appendix E, Member shall fully cooperate with MRES in
complying with any such directive or mitigation plan, including, but not limited to, taking
any required action related to equipment on, or operation of, its system or generation, if any.
Member agrees to provide timely and accurate information, as more particularly set forth in
paragraph 7.
6. Division of Compliance Responsibilities between MRES and Member. Each Party shall
be solely responsible for compliance with the NERC Reliability Standards as they apply to
the respective operations, activities, equipment and/or facilities of the Party, including Bulk
Electric System assets, identified in Appendix F, which is attached hereto and incorporated
into this Agreement, including payment of duly imposed sanctions and penalties for non-
compliance. In the event that NERC or the MRO directs MRES or Member to take specific
actions, or requires a Party to adopt or implement a mitigation plan, with respect to non-
compliance with any standard, or requirements within any standard as set forth in Appendix
F, Member shall fully cooperate with MRES in complying with any such directive or
mitigation plan, including, but not limited to, taking any required action related to
equipment on, or operation of, its system or generation, if any. Member agrees to provide
timely and accurate information, as more particularly set forth in paragraph 7.
7. Cooperation Necessary for Compliance. Member and MRES agree to cooperate fully in
order to achieve compliance with each and every NERC Reliability Standard for which each
has undertaken compliance responsibility under this Agreement and the various Appendices
hereto. Member agrees to provide timely and accurate information, and acknowledges that
such timely and accurate information is essential to the operation of this Agreement. MRES
shall identify with particularity the information that Member must provide to MRES to
ensure that the purposes of this Agreement can be effectively carried out. To the extent that
compliance requires any modifications or enhancements to Member's system, Member shall
make such modifications or enhancements at Member's expense, as more particularly set forth in
paragraph 13. In the event that Member provides inaccurate and /or untimely information, or
fails or refuses to take any action necessary for compliance, or shall in any other manner fail
to comply with those Reliability Standards and specific requirements within such standards
for which it is responsible, which causes the imposition of a sanction or penalty for non-
compliance, Member shall be solely responsible for payment of any such sanction or penalty
and shall indemnify and hold harmless MRES for any such sanction or penalty. Further,
Agreement Defining Responsibilities for
Compliance with Mandatory Reliability Standards
Between MRES and Hutchinson Utilities Commission Page 3 of 7
Member agrees to fully cooperate in the event of any compliance audit, enforcement, or .
penalty proceedings.
8. Changes Necessary to Comply with Amendments or Modifications of NERC Standards.
MRES and Member recognize that Appendix A may be modified by FERC from time to
time, and to update Appendix A to be consistent with any changes in the NERC or MRO
Compliance Registry Criteria. Similarly, MRES and Member recognize that the NERC
Reliability Standards applicable to the various functions for which MRES and/or Member
have registered with the MRO as set forth in Appendix B, may be changed from time to time,
and new standards and requirements may be added that are applicable to the Parties, and
therefore agree that MRES shall promptly update the Appendices to this Agreement to be
consistent with any such applicable changes. As the JRO, MRES shall provide the MRO
with the information relating to this Agreement, including the Appendices, that identifies
the respective compliance responsibilities of MRES and Members, as required by the
Compliance Registry Criteria, and shall provide such information whenever changes or
updates are made, but in no event less than annually. MRES shall provide Member with a
copy of each such filing.
9. NERC Monitoring. MRES will monitor the reliability standard - setting and compliance
process and activities of NERC and MRO, including interpretations of standards and
approval of such standards by FERC, in order to keep MRES and Member informed of their
respective compliance obligations, including any new obligations that arise from changes in
standards or the adoption of new standards. MRES shall use its best efforts to keep Member
informed of any such changes to standards and requirements for which Member is or will
become responsible.
10. Designation of Representative. MRES shall designate in writing an employee of MRES
responsible for NERC and MRO standards monitoring and compliance under this Agreement
and for communication with Member on issues under this Agreement, and shall inform
Member of such delegation. Similarly, Member shall designate, in writing, an employee of
the Member who is responsible for NERC monitoring and compliance under this Agreement
and communications related to this Agreement, and shall inform MRES of such delegation.
11. Meetings. MRES shall meet with Members no less often than annually to review NERC
compliance responsibilities, activities and related issues.
12. Agreement Changes, Amendments and Updates. This Agreement Defining Responsibilities
for Compliance with Mandatory Reliability Standards and each of the Appendices A through
F represent the complete agreement of the Parties. This Agreement may not be changed
except by written amendment signed by both Parties. The Parties acknowledge and agree
that the Appendices A through F will be modified by updating by MRES unilaterally on an
ongoing basis as part of the obligations MRES has assumed pursuant to this Agreement, and
that Member approval of such updates to each of the Appendices is expressly waived.
Agreement Defining Responsibilities for
Compliance with Mandatory Reliability Standards
Between MRES and Hutchinson Utilities Commission Page 4 of 7
13. Limitation of Liabilities and Indemnification. Subject to the obligation of MRES and
Member to fully cooperate with each other to achieve and maintain compliance with all
standards and requirements, MRES and Member each assume sole responsibility for
compliance with the NERC Reliability Standards which have been assigned to each
respectively in this Agreement, including penalties and sanctions for noncompliance. In the
event that Member provides inaccurate and/or untimely information which causes the
imposition of a sanction or penalty for non - compliance, Member shall be solely responsible
for payment of any such sanction or penalty and shall indemnify and hold harmless MRES
for any such sanction or penalty. Member recognizes that the assumption by MRES of
NERC standards compliance responsibility on behalf of Member under this Agreement, as
well as efforts of MRES to monitor the NERC standards development process,
interpretations and compliance activities, are being undertaken at no direct charge to
Member. Therefore, except as otherwise provided in this Agreement, MRES shall not be
responsible to Member for damages of any sort, including but not limited to direct,
consequential, incidental, special, indirect, punitive or other damages, whether based upon
contract, tort, or other claim, except for those damages arising from the intentional or willful
misconduct of MRES under this Agreement. Member shall indemnify and hold harmless
MRES, its directors, members of its governing boards, officers, employees or agents from
and against all losses and claims, demands, suits, actions, payments, and judgments,
including any and all expenses in the defense of same, arising from the execution or
performance of this Agreement. In the event that MRES shall make payment for any
sanction, penalty, or other cost for which the Member is responsible, Member agrees to
indemnify MRES for such payment made on its behalf. In the event that Member shall make
payment for any sanction, penalty, or other cost for which the MRES is responsible, MRES
agrees to indemnify Member for such payment made on its behalf. Neither Party shall
indemnify the other for costs incurred to comply with its own respective obligations, and
each Party agrees that it shall be responsible for its own such costs and obligations. Neither
Party shall indemnify the other for compliance costs, penalties or fees levied against a Party
for infractions by that Party, and each Party agrees that it shall be responsible for its own
such costs and obligations.
14. Term. This Agreement shall become effective as of June 4, 2007 or such other date that is
established for the effective date of the NERC Reliability Standards and shall remain in
effect for an initial period of one year until midnight on June 3, 2008, and shall continue
thereafter on a year to year basis, unless terminated by either Party. Either Party may
terminate this contract by giving six (6) month's prior written notice to the other Party.
Termination shall be effective only when the MRO recognizes the termination through
modification of its compliance registry or other means. Upon termination, each Party shall
be directly responsible to NERC and the MRO for compliance with Reliability Standards
applicable to it.
15. Notices. Any notice, demand or request required or authorized by this Agreement shall be
deemed properly given if mailed, postage prepaid, to MRES at its principal place of business
at 3724 West Avera Drive, P. O. Box 88920, Sioux Falls, South Dakota 57109 -8920, to
Agreement Defining Responsibilities for
Compliance with Mandatory Reliability Standards
Between MRES and Hutchinson Utilities Commission
Page 5 of 7
Member at 225 Michigan Street SE, Hutchinson, MN 55350 -1905. The foregoing addresses
may be changed at any time by similar notice.
16. Miscellaneous. The following provisions are applicable to this Agreement.
16.1. This Agreement shall be binding upon and inure to the benefit of the successors and
assigns of the respective Parties hereto, and the covenants, conditions, rights and
obligations of this Contract shall run for the full term of this Agreement. No
assignment of this Agreement, in whole or in part, will be made without the prior
written consent of the non - assigning Party; provided, either Party may transfer its
interest to any parent or affiliate by assignment, merger or otherwise without the prior
written approval of the other Party. Upon any transfer and assumption, the transferor
shall not be relieved of or discharged from any obligations hereunder.
16.2. If any provision in this Agreement is determined to be invalid, void or unenforceable
by any court having jurisdiction, such determination shall not invalidate, void, or
make unenforceable any other provision, agreement or covenant of this Agreement.
16.3. No waiver of any breach of this Agreement shall be held to be a waiver of any other
or subsequent breach.
16.4. Except as provided for expressly herein, neither this Agreement nor any terms hereof
may be terminated, amended, supplemented, waived or modified except by an
instrument in writing executed by all Parties to this Agreement.
16.5. The interpretation and performance of this Agreement shall be governed by the laws
of the State of South Dakota, excluding, however, any conflict of laws rule which
would apply the law of another jurisdiction.
16.6. This Agreement and all provisions herein is subject to all applicable and valid
statutes, rules, orders and regulations of any Federal, State, or local governmental
authority having jurisdiction over the Parties, their facilities, this Agreement or any
provisions thereof.
16.7. The parties agree to endeavor to resolve any controversy, claim, counter- claim,
dispute, difference, or misunderstanding arising out of or relating to this Agreement
or the breach of any obligation hereunder and any other matters in question relating to
this Agreement by submitting a written notice to the other Party describing the
specific basis of the dispute. Within thirty calendar days of the other Party's receipt
of such notice, each shall prepare and deliver to the other an offer of the settlement of
the dispute. Thereafter, the general manager of each Party shall meet to settle the
dispute. If the Parties reach agreement, they shall immediately take any action agreed
upon. If the dispute cannot be resolved by the involved parties within 30 days after
the exchange of settlement offers, either may resort to any legal recourse available to
obtain resolution of the matter.
Agreement Defining Responsibilities for
Compliance with Mandatory Reliability Standards
Between MRES and Hutchinson Utilities Commission
Page 6 of 7
1
I
I
_�
16.8. There is no third party beneficiary to this Agreement.
16.9. Each Party to this Agreement represents and warrants that it has full and complete
authority to enter into and perform this Agreement. Member shall provide a copy of
the City Council or Governing Board resolution or minutes in which approval of
Member entering into this Agreement was granted. Each person who executes this
Agreement on behalf of either Party represents and warrants that it has full and
complete authority to do so and that such Party will be bound thereby.
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed on the
day, month and year first above written.
[SEAL]
WITNESS:
Jerry Tielke, as its
Manager, Operations
[SEAL]
ATTEST:
Secretary /City Clerk
MISSOURI RIVER ENERGY SERVICES
By A S�f t 1)
Raymond J. Wahle, as I s
Director, Power Supply & Operations
MRES Legal Department
Approved: Date: S
HUTCHINSON UTILITIES COMMISSION
By VI-JAI
Name (Printed), as its
DO I ) -H L.J ,,(- / - k
Title
Agreement Defining Responsibilities for
Compliance with Mandatory Reliability Standards
Between MIRES and Hutchinson Utilities Commission
Page 7 of 7
Appendices to
AGREEMENT DEFINING RESPONSIBILITIES FOR
COMPLIANCE WITH MANDATORY RELIABILITY STANDARDS
Appendix A: NERC Statement of Compliance Registry Criteria (Version 3).
Appendix B: Registration List. Identifies the FERC- approved reliability functions for which
MRES and /or the Member must register.
Appendix C: MRES Direct Compliance Responsibilities. Defines those reliability standards for
which MRES shall be solely responsible for compliance with the MRO.
Appendix D: Member Direct Compliance Responsibilities. Defines those reliability standards
for which Member shall be solely responsible for compliance with the MRO.
Appendix E: MRES Assumption of Compliance Responsibilities. Defines those reliability
standards for which the parties agree that MRES shall be solely responsible for compliance.
Appendix F: Division of Compliance Responsibilities between MRES and Member.
Defines those reliability standards for which the parties agree that MRES and Member shall be
individually responsible for compliance as it applies to the respective operations, activities,
facilities and equipment of each Party.
lJ
Appendix A: NERC Statement of Compliance Registry Criteria (Version 3).
Appendices to Agreement Defining Responsibilities for
Compliance with Mandatory Reliability Standards
Between MRES and Hutchinson Utilities Commission
Page 2 of 17
Statement of Compliance Registry Criteria (Revision 3)
Summary
Since becoming the Electric Reliability Organization (ERO), NERC has initiated a program to
identify candidate organizations for its compliance registry. The program, conducted by NERC
and the Regional Entities, will also confirm the functions and information now on file for
currently- registered organizations. NERC and the Regional Entities have the obligation to
identify and register all entities that meet the criteria for inclusion in the compliance registry, as
further explained in the balance of this document.
This document describes how NERC will identify organizations that maybe candidates for
registration and assign them to the compliance registry.
Organizations will be responsible to register and to comply with approved reliability standards to
the extent that they are owners, operators, and users of the bulk power system, perform a
function listed in the functional types identified in Section II of this document, and are material
to the reliable operation of the interconnected bulk power system as defined by the criteria and
notes set forth in this document. NERC will apply the following principles to the compliance
registry:
• hi order to carry out its responsibilities related to enforcement of Reliability
Standards, NERC must identify the owners, operators, and users of the bulk power
system who have a material impact2 on the bulk power system through a compliance
registry. NERC and the Regional Entities will make their best efforts to identify all
owners, users and operators who have a material reliability impact on the bulk power
system in order to develop a complete and current registry list. The registry will be
updated as required and maintained on an on -going basis.
• Organizations listed in the compliance registry are responsible and will be monitored
for compliance with applicable mandatory reliability standards. They will be subject
to NERC's and the Regional Entities' compliance and enforcement programs.
• 'NERC and Regional Entities will not monitor nor hold those not in the registry
responsible for compliance with the standards. An entity which is not initially placed
on the registry, but which is identified subsequently as having a material reliability
impact, will be added to the registry. Such entity will not be subject to a sanction or
penalty by NERC or the Regional Entity for actions or inactions prior to being placed
1 'Ibis document uses the term "Regional Eatities," even though technically such entities do not yet exist. NERC has
filed for approval by FERC proposed delegation agreements with the eight regional reliability councils. The
Regional Entities will come into existence when those agreements take effect. The term also includes Cross- Border
Regional Entities,
2 The criteria for determining whether an entity will be placed on the registry are set forth in the balance of this
document. At any time a person may recommend in writing, with supporting reasons, to the director of compliance
that an organization be added to .or removed from the compliance registry, pursuant to NERC ROP 501.1.3.5.
116 -390 Village Boulevard, Princeton, New Jersey 08540 -5721
Phone: 609.452.8060 • Fax: 609.452.9550• www.nerc..com
Appendices to Agreement Defining Responsibilities for
Compliance with Mandatory Reliability Standards
Between MRES and Hutchinson Utilities Commission
Page 3of17
Rev.3, 0210612007
on the registry, but may be required to comply with a remedial action directive or
mitigation plan in order to become compliant with applicable standards. After such
entity has been placed on the compliance registry, it shall be responsible for
complying with Reliability Standards and may be subject to sanctions or penalties as
well as any remedial action directives and mitigation plans required by the Regional
Entities or NERC for future violations, including any failure to follow a remedial
action directive or mitigation plan to become compliant with Reliability Standards.
• Required compliance by a given organization with the standards will begin the later
of (i) inclusion of that organization in the compliance registry and (ii) approval by the
appropriate governmental authority of mandatory reliability standards applicable to
the entity.
Entities responsible for funding NERC and the Regional Entities have been identified in the
budget documents filed with FERC. Presence on or absence from the compliance registry has no
bearing on an entity's independent responsibility for funding NERC and the Regional Entities.
Background
In 2005, NERC and the Regional Entities conducted a voluntary organization registration
program limited to balancing authorities, planning authorities, regional reliability organizations,
reliability coordinators, transmission operators, and transmission planners. The list of the entities
that were registered constitutes what NTERC considered at that time as its compliance registry.
NERC has recently initiated a broader program to identify additional organizations potentially
eligible to be included in the compliance registry and to confirm the information of organizations
currently on file. NERC believes this is a prudent activity at this time because:
• As of July 20, 2006, NERC was certified as the ERO created for the U.S. by the Energy
Policy Act of 2005 (EPAct) and FERC Order 672. NERC has also filed with Canadian
authorities for similar recognition in their respective jurisdictions.
• FERC's Order 672 directs that owners, operators and users of the bulk power system
shall be registered with the ERO and the appropriate Regional Entities.
• As the ERO, NERC has filed its current reliability standards with FERC and with
Canadian authorities. When these are accepted and approved by FERC and appropriate
Canadian authorities, they will no longer be voluntary, and organizations that do not fully
comply with them may face penalties or other sanctions determined and levied by NERC
or the Regional Entities.
• NERC's reliability standards include compliance requirements for additional reliability
function types beyond the six types registered by earlier registration programs.
• Based on selection as the ERO, the extension and expansion of NERC's current
registration program is the means by which NERC and the Regional Entities will plan,
manage.and execute reliability standard compliance oversight of owners, operators, and
users of the bulk power system.
• Organizations listed in the compliance registry are subject to NERC's and the Regional
Entities' compliance and enforcement programs.
7 See: NERC ERO Application; Exhibit. C; Section 500 — .Organization Registration and Certification.
Statement of Compliance Registry Criteria
Appendices to Agreement Defining Responsibilities for
Compliance with Mandatory Reliability Standards
Between MRES and Hutchinson Utilities Commission
Page 4 of 17
Rev.3, 02/06/2007
Statement of Issue
As the ERO, NERC intends to comprehensively and thoroughly protect the reliability of the grid.
To support this goal NERC will include in its compliance registry each entity that. NERC
concludes can materially impact the reliability of the bulk power system. However, the potential
costs and effort of ensuring that every organization potentially within the scope of "owner,
operator, and user of the bulk power system" becomes registered while ignoring their impact
upon reliability, would be disproportionate to the improvement in reliability that would
reasonably be anticipated from doing so.
Prior to the date that the NERC Reliability Standards become enforceable, NERC wishes to
identify as many organizations as possible that may need to be listed in its compliance registry.
Identifying these organizations is necessary and prudent at this time for the purpose of
determining resource needs, both at the NERC and Regional Entity level, and to begin the
process of communication with these entities regarding their potential responsibilities and
obligations. NERC and the Regional Entities believe that primary candidate entities can. be
identified at this time, while other entities can be identified later. as and when needed. Selection
principles and criteria for the identification of these initial entities are required. This list will
become the "Initial Non - braiding Organization Registration List ". Once FERC makes the
approved Reliability Standards enforceable, this list, and any changes made to the list up to that
time, will become the NERC Compliance Registry.
Resolution
NERC and the Regional Entities have identified two principles they believe are key to the entity
selection process. These are:
1. There needs to be consistency between regions and across the continent with respect to
which entities are registered, and;
2. Any entity reasonably deemed material to the reliability of the bulk power system will. be
registered, irrespective of other considerations.
To address the second principle the Regional Entities, working with NERC, will identify and
register any entity they deem material to the reliability of the bulk power system.
In order to promote consistency, NERC and the Regional Entities intend to use the following
criteria as the basis for determining whether particular entities should be identified as candidates
for registration. All organizations meeting or exceeding the criteria will be identified as
candidates.
The following four groups of criteria (Sections I -IV) plus the statements in Section V will
provide guidance regarding an entity's registration status:
• Section I determines if the entity is an owner, operator, or user of the bulk power system
and, hence, a candidate for organization registration.
• Section II uses NERC'.s current functional type definitions to provide an initial
determination of the functional types for which the entities identified in Section I should
be considered for registration.
• Section III lists the criteria regarding smaller entities: these criteria can be used to forego
the registration of entities that were selected to be considered for registration pursuant to
Statement of Compliance Registry Criteria
Appendices to Agreement Defining Responsibilities for
Compliance with Mandatory Reliability Standards
Between MRES and Hutchinson Utilities Commission
Page 5 of 17
1
1
[1
Rev.3, 02/06/2007
Sections I and II and, if circumstances change, for later removing entities from the
registration list that no longer meet the relevant criteria.
Section IV lists additional criteria for joint registration. Joint registration criteria maybe
used by Joint Action Agencies, Generation and Transmission Cooperatives and other
entities which agree upon a clear division of compliance responsibility for Reliability
Standards by written agreement.
I. Entities that use, own or operate elements of the bulk electric system as established by
NERC's approved definition of bulk electric system below are (i) owners, operators; and
users of the bulk power system and (ii) candidates for registration:
As defined by the Regional Reliabilih7 Organization, the electrical generation
resources, transmission lines, interconnections with neighboring systems, and
associated equipment, generally operated at voltages of 100 W or higher. Radial
transmission facilities serving only load with one transmission source are
generally not included in this definition. `"
II. Entities identified in Part I above will be categorized as registration candidates who may be
subject to registration under one or more appropriate functional entity types based on a
comparison of the functions the entity normally performs against the following function
type definitions:
Function Type
Acronym
Defuution/Discussion
Balancing
BA
The responsible entity that integrates resource plans
Authority
ahead of time. maintains load - interchange- generation
balance within a. BA area, and supports Interconnection
frequency in real -time.
Distribution
DP
Provides and operates the "wires" between the
Provider
transmission system and the end -use customer. For those
end -use customers who are served at transmission
voltages, the Transmission Owner also serves as the DP.
Thus, the DP is not defined by a- specific voltage, but
rather as performing the Distribution function at any
voltage.
Generator
GOP
The entity that operates generating unit(s) and performs
Operator
the functions of supplying energy and interconnected
operations services.
Generator Owner
GO
Entity that owns and maintains generating units.
4 However; ownership of radial transmission facilities intended to be covered by the vegetation management
standard (applicable to transmission lines 200 kV and above) would be included in this definition.
Statement of Compliance Registry Criteria
Appendices to Agreement Defining Responsibilities for
Compliance with Mandatory Reliability Standards
Between MRES and Hutchinson Utilities Commission
Page 6 of 17
Rev.3, 02/06 /2007
Function Type
Acronym
Definition/Discussion
Load - Serving
LSE
Secures energy and transmission service (and related
Entity
interconnected operations services) to serve the electrical
demand and energy requirements of its end -use
customers.
Planning
PA
The responsible entity that coordinates and integrates
Authority
transmission facility and service plans, resource plans,
and protection systems.
Purchasing -
PSE
The entity that purchases or sells and takes title to
Selling Entity
energy, capacity, and interconnected operations services.
PSE may be affiliated or unaffiliated merchants and may
or may not own generating facilities.
Reliability
RC
The entity that is the highest level of authority who is
Coordinator
responsible for the reliable operation of the bulk power
system, has the wide area view of the bulk power system,
and has the operating tools, processes and procedures,
including the authority to prevent or mitigate emergency
operating situations in both neat -day analysis and real -
time operations. The RC has the purview that is broad
enough to enable the calculation of interconnection
reliability operating limits, which may be based on the
operating parameters of transmission systems beyond
any Transmission Operator's vision.
Reserve Sharing
RSG
A group whose members consist of two or more
Group
Balancing Authorities that collectively maintain;
allocate, and supply operating reserves required for each
BA's use in recovering from contingencies within the
group. Scheduling energy from an adjacent BA to aid
recovery need not constitute reserve sharing provided the
transaction is ramped in over a period the supplying
party could reasonably be expected to load generation in
(e.g., ten minutes). If the transaction is ramped in
quicker, (e.g., between zero and ten minutes) then, for
the purposes of disturbance control performance, the
areas become a RSG.
Resource
RP
The entity that develops a long -term (generally one year
Planner
and beyond) plan for the resource adequacy of specific
loads (customer demand and energy requirements)
within a PA area.
Transmission
TO
The entity that owns and maintains transmission
Owner
facilities.
Statement of Compliance Registry Criteria
Appendices to Agreement Defining Responsibilities for
Compliance with Mandatory Reliability Standards
Between MRES and Hutchinson Utilities Commission
Page 7 of 17
Rev. 3, 02/06/2007
Function Type
Acronym
Definition/Discussion
Transmission
TOP
The entity responsible for the reliability of its local
Operator
transmission system and operates or directs the
operations of the transmission facilities.
Transmission
TP
The entity that develops a long -term (generally one year
Planner
and beyond) plan for the reliability (adequacy) of the
interconnected bulk electric transmission systems within
its portion of the PA area.
Transmission
TSP
The entity that administers the transmission tariff and
Service Provider
provides transmission service to transmission customers
under applicable transmission service agreements.
III. Entities identified in Part II above as being subject to registration as an LSE, DP, GO, GOP,
TO, or TOP should be excluded from the registration list for these functions if they do not
meet any of the criteria listed below:
III(a) Load- serving Entity:
III.a.1 Load- serving entity peak load is > 25 MW and is directly connected to the
bulk power (> W) system, or;
III.a.2 Load- serving entity is designated as the responsible entity for facilities
that are part of a required underfrequency load shedding (LTFLS) program
designed, installed, and operated for the protection of the bulk power
system, or;
III.a.3 Load- serving entity is designated as the responsible entity for facilities
that are part of a required undervoltage load shedding (UV'LS) program
designed, installed, and operated for the protection of the bulk power
system.
[Exclusion: A load - serving entity will not be registered based on these
criteria if responsibilities for compliance with approved NERC reliability
standards or associated requirements including reporting have been
transferred by written agreement to another entity that has registered far
the appropriate function for the transferred responsibilities, such as a
load - serving entity, balancing authority, transmission operator, G &T
cooperative or _joint action agency as described in Section IV below.]
III(b) Distribution Provider:
III.b. I Distribution provider system serving >25 MW of peak load that is directly
connected to the bulk power system.
[Exclusion: A distribution provider will not registered based on this
criterion if responsibilities for compliance with approved NERC reliability
standards or associated requirements including reporting have been
transferred by written agreement to another entity that has registered for
the appropriate function for the transferred responsibilities, such as a
Statement of Compliance Registry Criteria
Appendices to Agreement Defining Responsibilities for
Compliance with Mandatory Reliability Standards
Between MRES and Hutchinson Utilities Commission
Page 8 of 17
Rev.3, 02/06/2007
load - serving entity, balancing authority; transmission operator, G &.T
cooperative, or joint action agency as described in Section IYI below] or,
III.b2 Distribution provider is the responsible entity that owns, controls, or
operates facilities that are part of any of the following protection systems
or programs designed, installed, and operated for the protection of the bulk
power system:
• a required UFLS program.
• a required MILS program.
• a required special protection system
• a required transmission protection system.
[Exclusion: A distribution provider will not be registered based on these
criteria if responsibilities for compliance with approved NERC reliability
standards or associated requirements including reporting have been
transferred by written agreement to another entity that has registered for
the appropriate function for the tranVi?rred responsibilities, such as a
load - serving entity, balancing authority, transmission operator, G &T
cooperative, or joint action agency as described in Section ]Y below.]
III(c) Generator Owner /Operator:
III.c.l Individual generating unit > 20 MVA (gross nameplate rating) and is
directly connected to the bulk power system, or;
III..c.2 Generating plant /facility > 75 MVA (gross aggregate nameplate rating) or
when the entity has responsibility for any facility consisting of one or
more units that are connected to the bulk power system at a, common bus
with total generation above 75 MVA gross nameplate rating, or;
III.c.3 Any generator, regardless of size, that is a blackstart unit material to and
designated as part of a transmission operator entity's restoration plan, or,
imc.4 Any generator, regardless of size, that is material to the reliability of the
bulk power system.
[Exclusions:
A generator owner /operator will not be registered based on these criteria
if responsibilities for compliance with _approved NERC reliability,
standards or associated requirements including reporting have been
transferred by written agreement to another entity that has registered for
the appropriate function for the transferred responsibilities, such as a
load - serving entity, G &T cooperative or joint action agency as described
in Section III below.
As a general matter, a customer -owned or operated generator /generation
that serves all or part of retail load with electric energy on the customer's
side of the retail meter may be excluded as a candidate for registration
based on these criteria if (i) the net capacity provided to the bulk power
system does not exceed the criteria above or the Regional Entity otherwise
determines the generator is not material to the bulk power system and (ii)
standby, back -up and maintenance power services are provided to the
generator or to the retail load pursuant to a binding obligation with
Statement of Compliance Registry Criteria
Appendices to Agreement Defining Responsibilities for
Compliance with Mandatory Reliability Standards
Between MRES and Hutchinson Utilities Commission
Page 9 of 17
'1
Rev.3, 02/06/2007
another generator owner /operator or under terms approved by the local
regulatory authority or the Federal Energy Regulatory Commission, as
applicable.]
III(d) Transmission Owner/Operator:
III. d. l An entity that owns/operates an integrated transmission element associated
with the bulk power system 100 kV and above, or lower voltage as defined
by the Regional Entity necessary to provide for the reliable operation of
the intercoiuiected transmission grid; or
III.d.2 An entity that owns /operates a transmission element below 100 kV
associated with a facility that is included on a critical facilities list that is
defined by the Regional Entity.
[Exclusion: A transmission owner /operator will not be registered based
on these criteria if responsibilities for compliance with approved ATERC
reliability standards or associated requirements including reporting have
been transferred by written agreement to another entity that has registered
for the appropriate function for the transferred responsibilities, such as a
load - serving entity, G &T cooperative or joint action agency as described
in Section IV below. l
IV. Joint Registration Organization and applicable Member Registration.
In its Rules of Procedure, NERC provided for the ability to register Joint Action
Agencies and Generation and Transmission Cooperatives on behalf of their members.
This section provides additional guidance for registration of Joint Action Agencies,
Generation and Transmission Cooperatives and other organizations or entities that have
agreed in writing to take compliance responsibility on behalf of another entity for one or
more Reliability Standards, and/or for one or more requirements within a Reliability
Standard, applicable to a particular function (a Joint Registration Organization, or JRO).
IV(a) TRO Registration
In addition to registering as a Registered Entity for all functions that a JRO
performs itself, a JRO may register on behalf of one or more of its members or
other entities for one or more functions as to which such members or other entities
would otherwise be required to register and thereby accept on behalf of such
members or other entities all compliance responsibility, including reporting
requirements, for all Reliability: Standards applicable to the function or functions
for which the JRO has registered on behalf of its members or other entities. In
such case, the JRO shall provide the Regional Entity with an annual list in aform
specified by the Regional Entity that identifies the members or other entities and
functions for which the JRO has registered on behalf of such members or other
entities under this section and for which the JRO assumes full compliance
responsibility. The Joint Registration Organization must identify its primary
compliance contact. The JRO primary compliance contact is responsible for
providing all of the information and data, and submitting reports as needed by the
Regional Entity for performing assessment of compliance.
IV(b) individual Member Registration
Statement of Compliance Registry Criteria
Appendices to Agreement Defining Responsibilities for
Compliance with Mandatory Reliability Standards
Between MRES and Hutchinson Utilities Commission
Page 10 of 17
Rev.3, 02/06/2007
A member of a JRO (or other entity) may register itself and undertake fill
compliance responsibility, including reporting requirements, for the Reliability
Standards applicable to the function for which the member or other entity is
registering. A JRO member that registers as a Registered Entity for any function
under this section shall inform the JRO and applicable Regional Entity of its
registration.
IV(c) Joint Registration
Where a JRO and any of its members or other entities agree, in writing, upon a
division of compliance responsibility between them for one or more Reliability
Standard(s) applicable to aparticular function, and /or for one or more
requirements within particular Reliability Standard(s), both the JRO and such
member or other entity shall register as a Registered Entity for that function.. In
such case, the JRO and its member or other entity must have a written agreement
that clearly specifies their respective responsibilities. T7ie JRO shall provide the
applicable Regional Entity each year with a list in a form specified by the
Regional Entity that identifies the compliance responsibilities of the JRO and its
member or other entity for each Reliability Standard and /or requirement within
each Reliability Standard, for the applicable function for which joint registration
has been chosen under this section. Neither NERC nor the Regional Entity shall
be parties to any such agreement between a JRO and its member or other entity,
nor shall NERC or the Regional Entity have responsibility for reviewing or
approving any such agreement. NERC or a Regional Entity may request
clarification of any list that identifies the compliance responsibilities of the JRO
and its member or other entity submitted to it and request such additional
information as the Regional Entity deems necessary or appropriate. Failure by a
JRO to respond to a reasonable request from a Regional Entity for clarification
may result in violation of a Reliability Standard since the Regional Entity may be
unable to determine compliance responsibility. Such violation will be assessed to
the JRO. In the event of a violation of a Reliability Standard, or requirement of a
Reliability Standard, the JRO or its member or other entity as identified in. the
Joint Registrant Organization Registry as responsible for such Reliability
Standard, or requirement thereof, shall be identified in the violation report and
receive the sanction or penalty for the violation. In the event that a Regional
Entity is not to determine which entity is responsible for violation of a
particular Reliability Standard or requirement thereof, based on the Joint
Registrant Organization Registry submitted, the Regional Entity shall find the
JRO to be in violation of the Reliability Standard and shall impose any sanction or
penalty on the JRO. Responsibility for any allocation or collection of penalties or
sanctions between the JRO and its member or other entity shall be with the JRO.
As discussed in the NERC Sanctions Guidelines, for a violation that is attributable
to a member or other entity that is registered under Joint Registration, the penalty
or sanction determined for the violation will bear reasonable relation to the
violation as incurred by that member or other entity and not the JRO.
V. If NERC or a Regional Entity encounters an organization that is not listed in the
compliance registry, but which should be subject to the reliability standards, NERC or the
Regional Entity is obligated and will add that organization to the registry, subject to that
Statement of Compliance Registry Criteria
Appendices to Agreement Defining Responsibilities for
Compliance with Mandatory Reliability Standards
Between MRES and Hutchinson Utilities Commission
Page 11 of 17
J
Rev.3, 02/06/2007
organization's right to challenge as provided in. Section 500 of NERC's Rules of Procedure
and as described in Note 3 below.
Notes to the above Criteria
The above are general criteria only. The Regional Entity considering registration of an
organization not meeting (e.g., smaller in size than) the criteria may propose registration
of that organization if the Regional Entity believes and can reasonably demonstrates that
the organization is a bulk power system owner, or operates, or uses bulk power system
assets, and is material to the reliability of the bulk power system. Similarly, the Regional
Entity may exclude an organization that meets the criteria described above as a candidate
for registration if it believes and can reasonably demonstrate to NERC that the bulk
power system owner, operator, or user does not have a material impact on the reliability
of the bulk power system.
2. An organization not identified using the criteria, but wishing to be registered, may
request that it be registered. For further information refer to: NERC Rules of Procedure,
Section 500 -- Organization Registration and Certification; Part 1.3.
3. An organization may challenge its registration within the compliance registry. NERC or
the Regional Entity will provide the organization with all information necessary to timely
challenge that determination including notice of the deadline for contesting the
determination and the relevant procedures to be followed as described in the NERC Rule
of Procedure, Section 500 — Organization Registration and Certification.
4. An entity such as a balancing authority or transmission operator may agree to register on
behalf of one or more of its load - serving entity or distribution provider customers, in lieu
of each such load- serving entity or distribution provider entity registering individually,
provided the entity registered accepts the associated reliability responsibilities in similar
fashion to that set out for JROs in Section IV above.
5 If an entity is part of a class of entities excluded based on the criteria above as
individually being unlikely to have a material impact on the reliability of the bulk power
system, but that in aggregate have been demonstrated to have such an impact it may be
registered for applicable standards and requirements irrespective of other considerations.
5 The reasonableness of any such demonstration will be subject to review and remand by NERC itself, or by any
agency having regulatory or statutory oversight of NERC as the ERO (e.g., FERC or appropriate Canadian
authorities).
Statement of Compliance Registry Criteria 10
Appendices to Agreement Defining Responsibilities for
Compliance with Mandatory Reliability Standards
Between MRES and Hutchinson Utilities Commission
Page 12 of 17
Appendix B: Registration List
May 22, 2007
This Appendix B identifies the FERC - approved functions for which MRES and/or the Member
must register, according to the NERC Reliability Functional Model, Function Definitions and
Responsible Entities, Version 3, February 13 2007 (Functional Model) and as reviewed by the
MRO.
1. MRES must register for the following NERC Functions as they apply to operations,
activities, equipment and /or facilities of MRES and/or Western Minnesota Municipal Power
Agency, including Bulk Electric System assets:
a. Generator Owner (GO)
b. Generator Operator (GOP)
C. Purchasing - Selling Entity (PSE)
d. Load Serving Entity (LSE)
e. Transmission Owner (TO)
2. Member must register for the following NERC Functions as they apply to operations,
activities, equipment and /or facilities of Member, including Bulk Electric System assets:
a. Load Serving Entity (LSE)
b. Transmission Owner (TO)
C. Distribution Provider (DP)
Appendices to Agreement Defining Responsibilities for
Compliance with Mandatory Reliability Standards
Between MRES and Hutchinson Utilities Commission Page 13 of 17
1
Appendix C: MRES Direct Compliance Responsibilities
May 22, 2007
This Appendix C defines those NERC Reliability Standards for which MRES shall be solely
responsible for compliance, as they apply to operations, activities, equipment and /or facilities of
MRES and/or Western Minnesota Municipal Power Agency.
1. MRES shall be solely responsible for the following individual standards:
a.
COM- 002 -2:
Communications and Coordination
b.
EOP- 004 -1:
Disturbance Reporting
c.
EOP -009 -1:
Documentation of Blackstart Generating Unit Test Results
d.
INT- 001 -2:
Interchange Registration
e.
PRC- 001 -1:
System Protection Coordination
f.
TOP - 005 -1:
Operational Reliability Information
g.
TOP - 006 -1:
Monitoring System Conditions
h.
VAR - 001 -1:
Voltage and Reactive Control
i.
VAR -002 -1:
Generator Operation for Maintaining Network Voltage Schedules
Appendices to Agreement Defining Responsibilities for
Compliance with Mandatory Reliability Standards
Between MRES and Hutchinson Utilities Commission
Page 14 of 17
Appendix D: Member Direct Compliance Responsibilities
May 22, 2007
This Appendix D defines those NERC Reliability Standards for which Member shall be solely
responsible for compliance, as they apply to operations, activities, equipment and/or facilities of
Member.
1. None.
Appendices to Agreement Defining Responsibilities for
Compliance with Mandatory Reliability Standards
Between MRES and Hutchinson Utilities Commission
Page 15 of 17
�I
Appendix E: MRES Assumption of Compliance Responsibilities
May 22, 2007
This Appendix E identifies the NERC Reliability Standards for which MRES undertakes sole
responsibility for compliance.
None.
Appendices to Agreement Defining Responsibilities for
Compliance with Mandatory Reliability Standards
Between MRES and Hutchinson Utilities Commission
Page 16 of 17
Appendix F: Division of Compliance Responsibilities between MRES and Member
May 22, 2007
This Appendix F identifies the NERC Reliability Standards for which each of the Parties are
individually responsible for compliance as it relates to the respective operations, activities,
facilities and equipment of each Party.
1. MRES and Member shall each be individually responsible for the following Reliability
Standards:
a.
BAL- 005 -0:
Automatic Generation Control
b.
CIP- 001 -1:
Sabotage Reporting
C.
CIP -002 -1:
Cyber Security -- Critical Cyber Asset Identification
d.
CIP- 003 -1:
Cyber Security — Security Management Controls
e.
CIP - 004 -1:
Cyber Security — Personnel and Training
£
CIP- 005 -1:
Cyber Security — Electronic Security Perimeter(s)
g.
CIP- 006 -1:
Cyber Security — Physical Controls
h.
CIP- 007 -1:
Cyber Security — Systems Security Management
i.
CIP- 008 -1:
Cyber Security — Incident Reporting and Response Planning
j.
CIP- 009 -1:
Cyber Security — Recovery Plans for Critical Cyber Assets
k.
FAC -001 -0:
Facility Coordination Requirements
1.
FAC- 002 -0:
Coordination of Plans for New Generation, Transmission, and
End -User
m.
FAC- 003 -1:
Transmission Vegetation Management Program
n.
FAC- 008 -1:
Facility Ratings Methodology
o.
FAC - 009 -1:
Establish and Communicate Facility Ratings
P.
IRO - 001 -1:
Reliability Coordination — Responsibilities and Authorities
q.
IRO - 005 -1:
Reliability Coordination — Current Day Operations
r.
PRC- 004 -1:
Analysis and Mitigation of Transmission and Generation
Protection System Misoperations
S.
PRC- 005 -1:
Transmission and Generation Protection System Maintenance and
Testing
t.
PRC - 018 -1:
Disturbance Monitoring Equipment Installation and Data
U.
TOP - 001 -1:
Reliability Responsibilities and Authorities
V.
IRO - 004 -1:
Reliability Coordination — Operations Planning
W.
MOD - 010 -0:
Steady -State Data for Transmission System Modeling and
Simulation
X. MOD - 017 -0:
Aggregated Actual and Forecasted Demands and Net Energy for
Load
Y. MOD- 018 -0:
Reports of Actual and Forecasted Demand Data
Z. MOD - 019 -0:
Forecasts of Interruptible Demands and DCLM Data
aa. MOD - 020 -0:
Providing Interruptible Demands and DCLM Data
bb. MOD - 021 -0:
Accounting Methodology for Effects of Controllable DSM in
Forecasts
CC. TOP - 002 -2:
Normal Operations Planning
Appendices to Agreement Defining Responsibilities for
Compliance with Mandatory Reliability
Standards
Between MRES and Hutchinson Utilities Commission Page 17 of 17
O
LL
Z
O
W
w
Z
g
O
V
W
J
Z
O
0)
Z
V
D
0 Oco
ui
N
0
O
z
c
O
Q'
m
Z
'O
V/
�C
SG
G
O
U
N Ln
LL M
H N �
J
�. i— Z cO T
N
Z a Z
O OOC)00
NC9N�)L9
Z 2 Z N N
=V =CV) M
FU-LO c..
x
C,4 Z5 2N2,ii
H
d
t
U)
co
N
W4
to
Z
Z
Y
j
M
N
O
O
O
z
c
O
Q
�
0
o
IX
Z
E
0
LL
N
Z
O
L
U
(6
w
F=
o
.`
a
U
Cl)
c
M
w In
W
LL�V/
cr)
CO
Z
-
=N5:,-
O
z Z
O 0 00 00
�
��N�lL9
U)
Z Z Z c°v CRI
_ 0 X M M
C
C C
c
X
VO
=N2CL ti
0
_W
O
F-
(D�
L
NN�
Q
D
Z
Z
O
O/�
F-
v/
= r
H r- U 5
— (6 C C
<6
U
Z = i.
D
U LO
=
=
W LO
LLI
D
Z F-Z t co
E
W 2 0 0
z
CL u
CO o 6
o
a� J��
JUJ>rnrn
O
LLJ
Z
U o o X
MmOFli
O N N (V6
Q— �m
L
.Q
Q
U)
�
0
o
0
f-
0
LO
E
r
T
a
L
U
(6
w
m
V
o
O
.`
a
LO
00
c
°'
T
°o
Q
_o
'ci•
r
0
(D�
T
NN�
Q
z -U)
Q
T O '0 O M
p2 -FD QUQ
d
T
c� �U)
H r- U 5
— (6 C C
<6
c
C
Y
c
O N co
>N
.fl O 'C O CV >
Q
pp
D
U)LO —
o c E— 60
E
.2.T m.2--o
cn+= -_ ca c
z
cu
a
o
co�cU)m
O
O
U
O
co _ -9 C.0 m—
CL
CL
O N N (V6
Q— �m
C) c`6 ��c° m� c
O OL QN+r co
T
�C
C
T
M
0 C) C)
o00
co
a
rn
c6
X 'C
c6 U
H �
co U —
76 Q O
U) U) F-
r
r'- v
C)
�.,
N N co i6 z
p pw
_o
(/7
w
or
w
Z J
O �
w
m
w
m
C m
O O
CD
O
CL
Of Q
0
T
0
d
1
C
O
E
E
O
N
D
c
O
U
0
cu
I-
i
d
U
.3
J
i
m
V
V
d
L
2
d
Y
0
m
a
c
0
H
0
0
r
ti
0
O
N
M
N
Y
cu
E
N
0
Q
a
Z
W
U
W
C
O
m
Co.
a
co
C
0
E
°o
DLO
Q
o
co
o
m
N
N
't
-a
LO
L
co
O
E
Z
Q�n
c6
C �
O
Z
O
Y Z
ca
6 Y
O� (6
ftf
`U)�
Q a a
Q .O C
o
U '�
:° O
CIE
�p0
cn
CD E
�-� C
N •—
CO
O
C O
�com
C
s
00
.a
N
a�
c
25
N
Y
c�
00
m
10
N
C
N
O_
Al
Minnesota Air Inc.
TERMS AND CONDITIONS OF SALE — EQUIPMENT
PAYMENT AND TAXES — Payment shall be made 1% 10T" prox net 30th from date of invoice. (i.e. Minnesota Air Inc. will allow a 1 % discou
n payments made on or before the 10`h day of the following month. The full balance will be due on the 30`h day of the following month.)
innesota Air Inc. reserves the right to require cash payment or other alternative method of payment prior to shipment or completion of work
Minnesota Air Inc. determines, in its sole discretion, that Customer or Customer's assignee's financial condition at any time does not justify
continuance of the prox net 30th payment term. In addition to the price, the Customer shall also pay Minnesota Air Inc. any taxes or
government charges arising from this Agreement.
RETURNS — No item will be accepted for return without prior written authorization. Returned goods must be in new condition with all of the
original packaging and labels. Retuned goods may be subject to restocking fees. Special order and non -stock items cannot be returned.
EXTRAS — Equipment, parts or labor in addition to those specified in this Agreement will be provided upon receipt of Customer's written
authorization and paid for as an extra and subject to the terms of this Agreement. Any work or material furnished at Minnesota Air expense,
must have written authorization and approval from Minnesota Air Inc prior to furnishing such service or materials. Upon completion of such
work, the approved price shall be invoiced for immediate processing of a credit memo and applied to your account. Deductions from our
invoices or back charges for unauthorized work or materials will not be accepted.
SHIPMENT — All shipments shall be F.O.B. shipping point, freight prepaid and allowed to the requested address unless stated differently
elsewhere in this document.
FREIGHT DAMAGE - Freight damage and freight claims are the responsibility of the Customer executing this agreement.
PARTIAL SHIPMENT- Minnesota Air Inc. shall have the right to ship any portion of the equipment included in this Agreement and invoice
Customer for such partial shipment.
DELAYS — Delays caused by conditions beyond the reasonable control of either party shall not be the liability of either party to this
Agreement. Shipment dates quoted are approximate. Minnesota Air Inc. does not guarantee a particular date for shipment or delivery.
Minnesota Air Inc. will not be liable for any delays in shipment or any damages suffered by the buyer or others as a result of the delay.
WARRANTY — Minnesota Air Inc. extends only the warranties given by the applicable manufacture upon goods manufactured by it as the
warranties are expressed in the Standard Product Warranty issued with each model. Minnesota Air Inc. shall at its option repair or replace
any part determined to be defective within one (1) year from the date of initial operation or eighteen (18) months from date of shipment,
whichever is earlier or as provided in applicable warranty documentation provided by the equipment manufacturer. THIS WARRANTY IS
GIVEN IN LIEU OF ALL OTHER WARRANTIES, EXPRESSED, IMPLIED, OR STATUTORY, INCLUDING THE IMPLIED WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. Minnesota Air Inc.'s obligation to repair or replace any defective parts
during the warranty period shall be Customer's exclusive remedy. Minnesota Air Inc. shall not be responsible for labor charges for removal or
-installation of defective parts, charges for transportation, handling and shipping, or refrigerant loss unless noted elsewhere in this
-igreement.
LIMITATION OF LIABILITY — Under no circumstances shall Minnesota Air Inc. be liable for any incidental, special or consequential damages,
including loss of revenue, loss of use of equipment or facilities, or economic damages based on strict liability or negligence. Minnesota Air Inc.
shall be liable for damage to property, other than equipment provided under this Agreement, and to persons, to the extent that Minnesota Air's
negligent acts or omissions directly contributed to such injury or property damage. Minnesota Air Inc. maximum liability for any reason (except
for personal injuries) shall consist of the refunding of all moneys paid by Customer to Minnesota Air Inc. under this Agreement, subject to right
of removal and return of equipment provided under this Agreement to Minnesota Air.
CANCELLATION — Customer may cancel this Agreement only with Minnesota Air Inc.'s prior written consent, and upon payment of
reasonable cancellation charges. Such charges shall take into account costs and expenses incurred, and purchases or contract commitments
made by Minnesota Air Inc. and all other losses due to the cancellation including a reasonable profit.
CLAIMS — Any suits arising from the performance or nonperformance of this Agreement, whether based upon contract, negligence, strict
liability or otherwise, shall be brought within one (1) year from the date the claim arose.
SUPERSEDURE, ASSIGNMENT and MODIFICATION — This Agreement contains the complete and exclusive statement of the agreement
between the parties and supersedes all previous or contemporaneous, oral or written, statements. Customer may assign this Agreement
only with Minnesota Air's prior written consent. No modification to this Agreement shall be binding unless in writing and signed by both
parties.
Accepted By: Quote Date:
Title: �/� Quote Number:
Date: 2. �_ C1 7 PO Number:
Job Name:
05/11/2007
JVB1833
Hutchinson Utilities
Temp /ate Version: 1.6 Page 2 of 2
T &C Revised: 8/10/2004
Advertisement for Bids
for
3750 KVA TRANSFORMER
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
sealed Bids at the Hutchinson Utilities office until 2:00 p.m. on the 19th day of June, 2007,
and will publicly open and read aloud such Bids on the following:
"3750 KVA TRANSFORMER"
Proposals shall be properly endorsed and delivered in an envelope marked "3750 KVA
TRANSFORMER" 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 guarantee that the Bidder will enter into the
proposed Contract after his Bid shall have been accepted.
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 at the Office of the Hutchinson Utilities, 225
Michigan Street, Hutchinson, Minnesota 55350.
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 _ 2 I G'
(30)
ATTESTED
DAVID WE5';iERLING , /Samw
VICE PRESIDENT
Date MAY 30, 2007
1
J