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01-30-2013 HUCMMINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, January 30, 2013 Call to order — 3:00 p.m. President Bordson called the meeting to order. Members present: President Dwight Bordson; Vice President Craig Lenz; Secretary Leon Johnson; Commissioner Anthony Hanson; Commissioner Monty Morrow; Attorney Marc Sebora; General Manager Michael Kumm. Guest: Don Grant (MMUA) 1. Commission Reorganization President Bordson called for a Commission reorganization. A motion was made by Secretary Johnson seconded by Vice President Lenz to elect Dwight Bordson to the position of president. Motion was unanimously carried. A motion was made by Vice President Lenz, seconded by Commissioner Morrow to elect Leon Johnson to the position of vice president. Motion was unanimously carried. A motion was made by President Bordson, seconded by Secretary Johnson to appoint Monty Morrow as secretary. Motion was unanimously carried. A motion was made by President Bordson, seconded by Commissioner Hanson to appoint Marc Sebora as legal counsel. Motion was unanimously carried. A motion was made by President Bordson, seconded by Vice President Lenz to appoint Kim Koski as recording secretary. Motion was unanimously carried. A motion was made by Commissioner Morrow, seconded by Secretary Johnson, to designate Citizens Bank & Trust, Wells Fargo and Home State Bank as depository for utility funds. Commissioner Hanson abstained from voting because of a conflict of interest. Motion was unanimously carried. 2. Approve Minutes of January 2, 2013 (December Regular Meeting) and January 15, 2013 Special Meeting The minutes of the January 2, 2013 regular and January 15, 2013 special meetings were reviewed. A motion was made by Vice President Lenz, seconded by Commissioner Hanson, to approve the minutes. Motion was unanimously carried. 3. Guest: Don Grant, MMUA — HUC Safety Program Don Grant, MMUA safety coordinator gave an overview of HUC's current safety program and handed out the safety training topics for 2013. Mr. Grant has been the safety coordinator for HUC since 2008. 1 4. Ratify Payment of Bills for December 2012 The December 2012 payables were discussed. A motion was made by Vice President Lenz, seconded by Commissioner Hanson to ratify the payment of bills in the amount of $3,649,401.71. (detailed listing in payables book). Motion was unanimously carried. 5. Approve Financial Statements /Budget Year to Date GM Kumm presented the December 2012 financial statements /budget year -to- date. After discussion, a motion was made by Vice President Lenz, seconded by Secretary Johnson to approve the financial statements /budget year -to -date. Motion was unanimously carried. 6. Approve Boiler and Machinery Insurance Jared Martig presented the boiler and machinery insurance quotes. Out of four companies, one provided a quote. The Board requested Jared investigate why the other three companies did not provide a quote along with discovering what insurance company Glencoe contracts with and report back to the Board at the February or March regular commission meeting. After discussion, a motion was made by Secretary Johnson, seconded by Vice President Lenz to approve the boiler and machinery insurance quote not to exceed $66,640. (Insurance quote attached.) 7. Approve 2012 Industrial Rebate GM Kumm presented the 2012 industrial rebate. After discussion, a motion was made by Vice President Lenz, seconded by Commissioner Hanson to approve the 2012 industrial rebate of $40,000. Secretary Johnson abstained from voting because of a conflict of interest. Motion was unanimously carried. (Rebate attached.) 8. Policy Review — CIP Rebate Level of Authority GM Kumm presented the CIP rebate level of authority. This is part of HUC's policy review process. No changes were recommended. 9. Approve Changes to Service Beyond City Limits of Hutchinson GM Kumm presented the changes to Service Beyond City Limits of Hutchinson policy. The sentence, "HUC is under no obligation to extend natural gas service beyond the city limits of Hutchinson, MN." was added to section 2. (A) Application. A motion was made by Commissioner Hanson, seconded by Commissioner Morrow to approve changes to Service Beyond City Limits of Hutchinson. Motion was unanimously carried. (Changes attached.) 10. Approve HTI Natural Gas Transportation Agreement John Webster presented the HTI natural gas transportation agreement. After discussion, a motion was made by Commissioner Morrow, seconded by Vice President Lenz to approve the HTI natural gas transportation agreement. President Bordson abstained from voting because of a conflict of interest. Motion was unanimously carried. (HTI transportation agreement attached.) 2 11. Approve Changes to Policies and Requirements Booklet GM Kumm presented changes to the policies and requirements booklet, sections: • Minnesota Government Data Practices Act & Public Records Request • Electric Service Requirements & Charges • Temporary Service - Electric Staff recommended adding verbiage to section electric service requirements and charges located under new multi - family dwelling, commercial, or industrial. The added verbiage reads: "For any services that require current transformer metering, the customer will be responsible to install the conductor from metering cabinet to the transformer." No changes were recommended for sections Minnesota government data practices act & public records request; and temporary service — electric. A motion was made by Secretary Johnson, seconded by Commissioner Hanson to approve the changes to the policies and requirements booklet, section electric service requirements and charges. Motion was unanimously carried. (Changes attached.) 12. Approve Changes to Exempt and Non - Exempt Handbooks GM Kumm presented changes to the exempt and non - exempt handbooks, sections: • Employment of Relatives • Membership /Dues /Conventions (Exempt Only) • Personnel Records Access and Data Privacy Staff recommended changes to sections: employment of relatives and membership /dues /conventions (exempt only). After discussion, the section employment of relatives was tabled until the next regular meeting. The Board requested Jan Sifferath research replacement verbiage for "No two members of an immediate family may work within the same Utilities department." Recommended changes to membership /dues /conventions (exempt only) were for clean -up purposes only. No changes were recommended for section personnel records access and data privacy. A motion was made by Commissioner Hanson, seconded by Commissioner Morrow to approve the changes to the exempt and non - exempt handbooks, section: membership /dues /conventions (exempt only). Motion was unanimously carried. (Changes attached.) 13. Discuss PILOT Workshop — Set February Date Discussion held regarding setting a date for the next PILOT workshop. a. Any Added PILOT Discussion from January 15 Workshop? Discussion held on what the Board would like to see presented in the future PILOT workshops with proposed solutions being presented in the final PILOT workshop by March or April. 3 14. Communication from the City Administrator City Administrator Carter was absent. 15. Division Reports Finance — Jared Martig • Auditors at HUC this week. • Finalizing financials within a couple weeks. Natural Gas — John Webster • Purchased natural gas this past week for November 2013 through October 2022 at a fixed price of $5.30. HUC now has three 9 -year deals. • Received information from American Public Gas Association to help with benchmarking. • Met with GM Kumm and the City of Brownton last week to discuss the possibility of HUC operating and maintaining a natural gas pipeline for City of Brownton. Electric — Steve Lancaster • Received over 30 applications for plant electrician position. • Unit 5 has run 77 hours; conducting periodic maintenance. Business — Jan Sifferath • Received 2012 parallel generation report. • Finalizing 2012 total disconnects report. • New welder serviceperson, Jon Helmbrecht, started at HUC. GM Kumm presented information regarding the preservation of tax exempt financing. The Board will review the information to support the City of Hutchinson passing a resolution regarding the preservation and discuss at February's regular commission meeting. GM Kumm presented rate comparisons for years 2006 -2012 for both the natural gas and electric utilities which indicate how flat HUC's rates have been over the last eight years. This shows the effectiveness of HUC's strategies in keeping rates stable. 16. Legal Update Nothing to report 11 Unfinished Business • Update from City Attorney on Patent for the Real -Time Auto - Suggestion for Nodal Delivery in Energy Networks Attorney Sebora reported a draft patent application will be available by Mr. Fairbairn by February 15 for GM Kumm's review. • Discussion Regarding Pre -Pay for Natural Gas GM Kumm reported no update. • Discuss Credit Card Payments Jan Sifferath is continuing to work with LOGIS to implement a utility interchange agreement for HUC which will result in a substantial decrease in credit card processing fees. • Discuss Criteria for New Commissioner Candidates Attorney Sebora reported he was unable to contact Hutchinson Hospital to gather matrix information for the Board to review in regard to developing criteria for future commissioner candidates. New Business There being no further business, a motion was made by Vice President Lenz, seconded by Commissioner Hanson to adjourn the meeting at 4:56 p.m. Motion was unanimously carried. ATTEST: Dwight Bordson, President 5 Monty Morrow, Secretary MINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, January 30, 2013 Call to order — 3:00 p.m. President Bordson called the meeting to order. Members present: President Dwight Bordson; Vice President Craig Lenz; Secretary Leon Johnson; Commissioner Anthony Hanson; Commissioner Monty Morrow; Attorney Marc Sebora; General Manager Michael Kumm. Guest: Don Grant (MMUA) 1. Commission Reorganization President Bordson called for a Commission reorganization. A motion was made by Secretary Johnson seconded by Vice President Lenz to elect Dwight Bordson to the position of president. Motion was unanimously carried. A motion was made by Vice President Lenz, seconded by Commissioner Morrow to elect Leon Johnson to the position of vice president. Motion was unanimously carried. A motion was made by President Bordson, seconded by Secretary Johnson to appoint Monty Morrow as secretary. Motion was unanimously carried. A motion was made by President Bordson, seconded by Commissioner Hanson to appoint Marc Sebora as legal counsel. Motion was unanimously carried. A motion was made by President Bordson, seconded by Vice President Lenz to appoint Kim Koski as recording secretary. Motion was unanimously carried. A motion was made by Commissioner Morrow, seconded by Secretary Johnson, to designate Citizens Bank & Trust, Wells Fargo and Home State Bank as depository for utility funds. Commissioner Hanson abstained from voting because of a conflict of interest. Motion was unanimously carried. 2. Approve Minutes of January 2, 2013 (December Regular Meeting) and January 15, 2013 Special Meeting The minutes of the January 2, 2013 regular and January 15, 2013 special meetings were reviewed. A motion was made by Vice President Lenz, seconded by Commissioner Hanson, to approve the minutes. Motion was unanimously carried. 3. Guest: Don Grant, MMUA — HUC Safety Program Don Grant, MMUA safety coordinator gave an overview of HUC's current safety program and handed out the safety training topics for 2013. Mr. Grant has been the safety coordinator for HUC since 2008. 1 4. Ratify Payment of Bills for December 2012 The December 2012 payables were discussed. A motion was made by Vice President Lenz, seconded by Commissioner Hanson to ratify the payment of bills in the amount of $3,649,401.71. (detailed listing in payables book). Motion was unanimously carried. 5. Approve Financial Statements /Budget Year to Date GM Kumm presented the December 2012 financial statements /budget year -to- date. After discussion, a motion was made by Vice President Lenz, seconded by Secretary Johnson to approve the financial statements /budget year -to -date. Motion was unanimously carried. 6. Approve Boiler and Machinery Insurance Jared Martig presented the boiler and machinery insurance quotes. Out of four companies, one provided a quote. The Board requested Jared investigate why the other three companies did not provide a quote along with discovering what insurance company Glencoe contracts with and report back to the Board at the February or March regular commission meeting. After discussion, a motion was made by Secretary Johnson, seconded by Vice President Lenz to approve the boiler and machinery insurance quote not to exceed $66,640. (Insurance quote attached.) 7. Approve 2012 Industrial Rebate GM Kumm presented the 2012 industrial rebate. After discussion, a motion was made by Vice President Lenz, seconded by Commissioner Hanson to approve the 2012 industrial rebate of $40,000. Secretary Johnson abstained from voting because of a conflict of interest. Motion was unanimously carried. (Rebate attached.) 8. Policy Review — CIP Rebate Level of Authority GM Kumm presented the CIP rebate level of authority. This is part of HUC's policy review process. No changes were recommended. 9. Approve Changes to Service Beyond City Limits of Hutchinson GM Kumm presented the changes to Service Beyond City Limits of Hutchinson policy. The sentence, "HUC is under no obligation to extend natural gas service beyond the city limits of Hutchinson, MN." was added to section 2. (A) Application. A motion was made by Commissioner Hanson, seconded by Commissioner Morrow to approve changes to Service Beyond City Limits of Hutchinson. Motion was unanimously carried. (Changes attached.) 10. Approve HTI Natural Gas Transportation Agreement John Webster presented the HTI natural gas transportation agreement. After discussion, a motion was made by Commissioner Morrow, seconded by Vice President Lenz to approve the HTI natural gas transportation agreement. President Bordson abstained from voting because of a conflict of interest. Motion was unanimously carried. (HTI transportation agreement attached.) 2 11. Approve Changes to Policies and Requirements Booklet GM Kumm presented changes to the policies and requirements booklet, sections: • Minnesota Government Data Practices Act & Public Records Request • Electric Service Requirements & Charges • Temporary Service - Electric Staff recommended adding verbiage to section electric service requirements and charges located under new multi - family dwelling, commercial, or industrial. The added verbiage reads: "For any services that require current transformer metering, the customer will be responsible to install the conductor from metering cabinet to the transformer." No changes were recommended for sections Minnesota government data practices act & public records request; and temporary service — electric. A motion was made by Secretary Johnson, seconded by Commissioner Hanson to approve the changes to the policies and requirements booklet, section electric service requirements and charges. Motion was unanimously carried. (Changes attached.) 12. Approve Changes to Exempt and Non - Exempt Handbooks GM Kumm presented changes to the exempt and non - exempt handbooks, sections: • Employment of Relatives • Membership /Dues /Conventions (Exempt Only) • Personnel Records Access and Data Privacy Staff recommended changes to sections: employment of relatives and membership /dues /conventions (exempt only). After discussion, the section employment of relatives was tabled until the next regular meeting. The Board requested Jan Sifferath research replacement verbiage for "No two members of an immediate family may work within the same Utilities department." Recommended changes to membership /dues /conventions (exempt only) were for clean -up purposes only. No changes were recommended for section personnel records access and data privacy. A motion was made by Commissioner Hanson, seconded by Commissioner Morrow to approve the changes to the exempt and non - exempt handbooks, section: membership /dues /conventions (exempt only). Motion was unanimously carried. (Changes attached.) 13. Discuss PILOT Workshop — Set February Date Discussion held regarding setting a date for the next PILOT workshop. a. Any Added PILOT Discussion from January 15 Workshop? Discussion held on what the Board would like to see presented in the future PILOT workshops with proposed solutions being presented in the final PILOT workshop by March or April. 3 14. Communication from the City Administrator City Administrator Carter was absent. 15. Division Reports Finance — Jared Martig • Auditors at HUC this week. • Finalizing financials within a couple weeks. Natural Gas — John Webster • Purchased natural gas this past week for November 2013 through October 2022 at a fixed price of $5.30. HUC now has three 9 -year deals. • Received information from American Public Gas Association to help with benchmarking. • Met with GM Kumm and the City of Brownton last week to discuss the possibility of HUC operating and maintaining a natural gas pipeline for City of Brownton. Electric — Steve Lancaster • Received over 30 applications for plant electrician position. • Unit 5 has run 77 hours; conducting periodic maintenance. Business — Jan Sifferath • Received 2012 parallel generation report. • Finalizing 2012 total disconnects report. • New welder serviceperson, Jon Helmbrecht, started at HUC. GM Kumm presented information regarding the preservation of tax exempt financing. The Board will review the information to support the City of Hutchinson passing a resolution regarding the preservation and discuss at February's regular commission meeting. GM Kumm presented rate comparisons for years 2006 -2012 for both the natural gas and electric utilities which indicate how flat HUC's rates have been over the last eight years. This shows the effectiveness of HUC's strategies in keeping rates stable. 16. Legal Update Nothing to report n Unfinished Business • Update from City Attorney on Patent for the Real -Time Auto - Suggestion for Nodal Delivery in Energy Networks Attorney Sebora reported a draft patent application will be available by Mr. Fairbairn by February 15 for GM Kumm's review. • Discussion Regarding Pre -Pay for Natural Gas GM Kumm reported no update. • Discuss Credit Card Payments Jan Sifferath is continuing to work with LOGIS to implement a utility interchange agreement for HUC which will result in a substantial decrease in credit card processing fees. • Discuss Criteria for New Commissioner Candidates Attorney Sebora reported he was unable to contact Hutchinson Hospital to gather matrix information for the Board to review in regard to developing criteria for future commissioner candidates. New Business There being no further business, a motion was made by Vice President Lenz, seconded by Commissioner Hanson to adjourn the meeting at 4:56 p.m. Motion was unanimously carried. Monty Morrow, Secretary ATTEST: D ght ordson, President 5 Approve Boiler and Machinery Insurance Zurich $66,640.00 CNA No Quote Travelers No Quote Hartford Steam Boiler No Quote Y� 9 /lam b 3 02 -- �ptCXIN,��� �rl i IiIES COMMERCIAL HUTCHINSON UTILITIES COMMISSION RESIDENTIAL ENERGY REBATE APPLICATION Effective January 01, 2012 MUST BE FILLED OUT COMPLETELY OR APPLICATION WILL NOT BE CONSIDERED /'\ Customer Name Home Phone Number Work Phone Number Installer's Name & Phone Number (if customer installed, write self) Installer's Signature Mailing Address O`% /0 0 Oy/ 3i-d eY/ 3e,C . D y! 370, OY 0 HUC Account Num er �— 0-� 130` y ye(, / 7 y q ov 3 j 6- /l o q1torve Retailer's Name Equipment /Appliance Installed Model # Manufacturer's Name Size or Capacity Product Cost Date Installed Why was the product replaced? _ Failed Unit _ _ Non- failed Unit No Previous Unit Equipment /Appliance Installed Model # Manufacturer's Name Size or Capacity Product Cost Date Installed Why was the product replaced? _ Failed Unit _Non-failed Unit No Previous Unit "CONSERVE ENERGY" "SAVE MONEY" N 6D m Gp C N w V 7 N E m 00 u y C a C 7 L d O Z O N `! C Y N to C m W 3 •j o V a m u u _ a`ai C Q > 0 W tin r G CL 3 w � o c T cu N m a m v H > LL 3 Y c m H fa yj c o w E L a) o (V 3 N • C O O E C C T V d C E m 7 C Y O m L v N O 3 cu OV C N 1n 3 C n a E a > v' v m E m CL o a, O E '� m CL uu E E O v G1 oc N z p Y N C m N cc N O Z c N �-. O O O O O O O v m V ? O O O O O O O QJ S V Q \ 00 O C O O O O O m LOO lO O O L O.. C m N N 000 N M —4 -4 O O Y >» � '� m � to v1 +n v1 4^ t/1 � v} v} o m c e-1 o n rn C In in m O In In ti C N — 'h N v N n v � 0Q10 o p a°i r i C) C >` N m Ln C) '+ n N x m N co o 0 Y 00 N uu O O °• on j 00 In 00 to O L N' � C i " p O E E C) N Vl N v} O O O O O O N O O O O O O O O C O Ua C O O u 67 N N 1-4 14 O LO O N V' C O r-1 G +/! v} V* Vt to N v? Y Gl 3 Y m Q, a .n a o � O a m a o m m m °J N v c x - u E m u N O OU N E a V U al m Q 4J O O t N 0 0 aEi a o .m-. N v' n o F- > G fn Q ¢ (7 O ¢ a a U C, O N 8 O O n a H fr x� W C CL W m c FL w a U F ppJ O D C � LL N m a O O [7 O a 0 O O O O 0 0 0 0 0 0 p O O O O . m 0O O O O O 0 0 0 0 0 0 pp SO 8O < IA n (1 .- O M O O O O N O t0 O O r. N n ch N < 0 CO qt N O 1A N O T t0 to n 10 8 w CD R Cl) N C) v N N N i0 N N r H H H H 11- to H 69 Ifl f9 to E9 f9 wl d9 H H c m E m °o °o N o° GhC c4iv C W a1 gmn CV 7 nLL N Q a m 'v rn d IL U m c U 8nN coV U E N Z {f� m & E ai -0 m O H H H H at r_ V 2 U S 0 C NOO 0 0 y aVRao a U o m m CO 0 0 0 0 N m m t m �2 2 !9 p, ID V c F O m m m rn rn y a m s C m C U w C ¢ LL C ¢ « _ on w V ¢ V '2 O1 U N M m o C m O O O N � W W C O O O 7 0 E E (M c C. m m m E oe co 7 (n w E m N m d W Z M N m W m m o m m fJl F F _ 8 O O n a H fr x� W C CL W m c FL w a U F HUTCHINSON UTILITIES COMMISSION NATURAL GAS SERVICE BEYOND THE CITY LIMITS OF HUTCHINSON DISTRIBUTION MAIN EXTENSION POLICY JOHN WEBSTER 1/14/2013 THIS DOCUMENT SETS FORTH THE PROCEDURES TO BE OBSERVED WHEN EXTENDING A NATURAL GAS DISTRIBUTION MAIN BEYOND THE CITY LIMITS OF HUTCHINSON. HUTCHINSON UTILITIES COMMISSION DISTRIBUTION MAIN EXTENSION POLICY SERVICE BEYOND CITY LIMITS OF HUTCHINSON DEFINITIONS NATURAL GAS DISTRIBUTION MAIN NATURAL GAS DISTRIBUTION MAIN IS DEFINED AS THAT PORTION OF THE HUC'S NATURAL GAS PIPING AND RELATED FACILITIES WHICH ARE INTENDED TO PROVIDE SERVICE TO MORE THAN A SINGLE CUSTOMER. SUCH PIPING IS NORMALLY LOCATED IN PUBLIC STREETS AND THEIR RIGHT -OF -WAY OR ADJACENT TO PROPERTY LINES. 2. INDIVIDUAL REQUESTS FOR GAS MAIN EXTENSION A. APPLICATION PROSPECTIVE CUSTOMERS CURRENTLY WITHOUT NATURAL GAS SERVICE MAY REQUEST SUCH SERVICE BY SUBMITTING A WRITTEN APPLICATION TO HUTCHINSON UTILITIES COMMISSION (HUC). HUC SHALL INVESTIGATE THE POSSIBILITY OF INSTALLING GAS MAIN TO THE CUSTOMER AND SHALL MAKE AN ESTIMATE OF THE COSTS INVOLVED. HUC IS UNDER NO OBLIGATION TO EXTEND NATURAL GAS SERVICE BEYOND THE CITY LIMITS OF HUTCHINSON, MN. B. ALLOWANCES EACH CUSTOMER SHALL RECEIVE A CONSTRUCTION ALLOWANCE BASED ON PROJECTED MARGINAL REVENUE. 1) RESIDENTIAL CUSTOMERS- $915.00 2) FIRM COMMERCIAL CUSTOMERS ALLOWANCE FOR MAIN SHALL BE BASED ON CUSTOMER'S ESTIMATED ANNUAL REVENUE USING THE FOLLOWING FORMULA (BASED ON SEVEN YEAR RECOVERY): ALLOWANCE = $(U X M) X 7 PAGE I OF 6 WHERE: U = ESTIMATED LONG TERM ANNUAL USAGE IN MCF M = APPLICABLE MARGIN PER MCF MONTHLY "METER CHARGE" NOT CONSIDERED IN CALCULATING CUSTOMER ALLOWANCE AS THIS IS A FIXED COST TO HUC. C. CUSTOMER CONTRIBUTIONS A CONTRIBUTION SHALL BE REQUIRED IF THE ESTIMATED CONSTRUCTION COST OF MAIN EXCEEDS THE MAIN ALLOWANCE(S) FOR THE CUSTOMER(S) REQUESTING THE EXTENSION. THIS PAYMENT IS DUE AS A SINGLE PAYMENT PRIOR TO THE INSTALLATION OF THE MAIN. HOWEVER, IF A RESIDENTIAL CUSTOMER'S CONTRIBUTION FOR MAIN EXCEEDS $300.00, THE CUSTOMER, WITH THE APPROVAL OF HUC, MAY ELECT TO MAKE A SINGLE PAYMENT BEFORE CONSTRUCTION BEGINS OR AGREE TO PAY THE CONTRIBUTION IN TWELVE (1 2) EQUAL INSTALLMENTS, INCLUDING A FINANCE CHARGE BASED ON HUC'S CURRENT WEIGHTED COST OF CAPITAL. THESE INSTALLMENTS SHALL BE BILLED WITH THE UTILITY BILL AND BE PAYABLE ON THE SAME DATE AS THE UTILITY BILL. ALL CONTRIBUTIONS SHALL BE REFUNDABLE IN ACCORDANCE WITH SECTION 3. OF THIS SCHEDULE. 3. REAPPORTIONMENT AND REFUNDS OF CONTRIBUTIONS A. REAPPORTIONMENT OF CUSTOMER CONTRIBUTION WHEN ADDITIONAL CUSTOMERS TAKE SERVICE FROM A MAIN EXTENSION WHICH HAD REQUIRED A CUSTOMER CONTRIBUTION, THE ORIGINAL CONTRIBUTION AND ANY NEW CONTRIBUTION WILL BE REAPPORTIONED AMONG ALL CUSTOMERS ON THE EXTENSION IF THE REAPPORTIONMENT DOES NOT CAUSE AN INCREASE IN ANY EXISTING CUSTOMER'S CONTRIBUTION. IF THE REAPPORTIONMENT CALCULATION WOULD CAUSE AN INCREASE TO ANY CUSTOMER'S CONTRIBUTION, THE PORTION OF NEW MAIN FACILITIES UNDER CONSIDERATION WILL BE CONSIDERED A SEPARATE AND NEW GAS MAIN EXTENSION SUBJECT TO ALL THE GAS EXTENSION RULES. B. REFUNDS OF CUSTOMERS WITH NO ADDITIONAL CONTRIBUTION THE HUC SHALL MAKE REFUNDS TO THE CUSTOMER(S) OR DEVELOPER WHO MADE THE CONTRIBUTION(S) TOWARD THE EXTENSION OF MAIN FOR A PERIOD OF FIVE (5) YEARS FROM THE INSTALLATION DATE. WHEN THE HUC CONNECTS NEW CUSTOMERS TO THIS PORTION OF MAIN EXTENSION, THE REFUND SHALL BE EQUAL TO THE CHANGE IN THE CUSTOMER CONTRIBUTION VALUE AFTER PAGE 2OF6 REAPPORTIONING THE CONTRIBUTION USING THE ALLOWANCE IN EFFECT AT THE TIME THE EXTENSION WAS INSTALLED. WHEN THE HUC MAKES AN EXTENSION OF MAIN TO SUBSEQUENT CUSTOMER(S) THAT DOES NOT REQUIRE A CONTRIBUTION FROM THE SUBSEQUENT CUSTOMER(S), THE REFUND SHALL BE EQUAL TO THE CHANGE IN THE CUSTOMER USING THE ALLOWANCE IN EFFECT AT THE TIME THE ORIGINAL EXTENSION WAS INSTALLED AND THE ALLOWANCE IN EFFECT FOR THE NEW FACILITIES LESS THE CONSTRUCTION COSTS OF ALL MAIN. C. SINGLE CUSTOMER PAYMENT OF CONTRIBUTION IF AN INDIVIDUAL CUSTOMER AGREES IN WRITING BEFORE THE MAIN EXTENSION IS INSTALLED TO PAY THE TOTAL REQUIRED CONTRIBUTION, THAT CUSTOMER SHALL BE ELIGIBLE FOR ALL MAIN ALLOWANCE REFUNDS FROM ALL SUBSEQUENT CUSTOMERS ON THE EXTENSION DURING THE REFUND PERIOD. SUCH A WRITTEN AGREEMENT WILL THEREBY PRECLUDE ANY REAPPORTIONMENT OF THE CONTRIBUTION AMONG SUBSEQUENT CUSTOMERS. 1) IF A FURTHER MAIN EXTENSION OFF THE ORIGINAL EXTENSION IS REQUIRED TO SERVE A SUBSEQUENT CUSTOMER AND THE MAIN COST IS LESS THAN THE TOTAL MAIN ALLOWANCE AVAILABLE, THE UNUSED ALLOWANCE SHALL BE REFUNDED TO THE CUSTOMER WHO MADE THE SINGLE PAYMENT CONTRIBUTION OUTLINED ABOVE. 2) IF A FURTHER MAIN EXTENSION OFF THE ORIGINAL EXTENSION IS REQUIRED TO SERVE A SUBSEQUENT CUSTOMER AND THE MAIN COSTS EXCEEDS THE TOTAL MAIN ALLOWANCE AVAILABLE, THE SUBSEQUENT CUSTOMERS SHALL PAY THE CONTRIBUTION FOR THE NEW FACILITIES. 4. RIGHT TO REFUND THE RIGHT TO RECEIVE A REFUND OF ANY CONTRIBUTION HELD HEREUNDER WILL ATTACH TO THE OWNERSHIP OF THE PREMISES FOR WHICH THE ORIGINAL EXTENSION WAS MADE. ANY REFUND SHALL BE MADE TO THE PERSON WHO OWNS SUCH PREMISE(S) AT THE TIME THE REFUND IS PAID UNLESS THE CONTRIBUTOR HAS RESERVED THE RIGHT TO RECEIVE SUCH REFUND IN THE CONVEYANCE OF THE PREMISE(S) TO A SUBSEQUENT OWNER AND DEMONSTRATES THAT TO THE HUC. IN THE CASE OF A DEVELOPER MAKING A CONTRIBUTION TO EXTEND GAS INTO A DEVELOPMENT, THE RIGHT TO RECEIVE A REFUND SHALL ATTACH TO THE OWNER OF THE DEVELOPMENT AT THE TIME THE REFUND BECOMES DUE, UNLESS, IN THE CONVEYANCE OF THE DEVELOPMENT, THE DEVELOPER PROVIDES THE HUC WITH A WRITTEN AGREEMENT RESERVING THE RIGHT TO RECEIVE SUCH REFUNDS. PAGE 3 OF 6 IN NO CASE SHALL THE TOTAL REFUND(S) EXCEED THE AMOUNT OF THE CONTRIBUTION. 5. CLEARING RIGHTS AND COSTS CUSTOMER REQUESTING SERVICE SHALL FURNISH, WITHOUT EXPENSE TO THE HUC, RIGHT-OF -WAY, EASEMENTS, PERMITS AND ADDITIONAL COSTS INCURRED TO PROVIDE ADEQUATE CLEARING FOR THE MAIN EXTENSION TO SERVE THE CUSTOMER ALONG A ROUTE APPROVED BY THE HUC AFTER CONSULTING WITH THE CUSTOMER. IF REQUESTED BY THE CUSTOMER, THE HUC WILL DO THE CLEARING AT CUSTOMER'S EXPENSE. THE CUSTOMER SHALL PAY THE HUC THE ESTIMATED COST OF CLEARING TO BE DONE BY THE HUC. COSTS WILL BE ADJUSTED TO ACTUAL COSTS UPON COMPLETION OF THE JOB. 6. TITLE THE TITLE TO ALL DISTRIBUTION MAIN EXTENSIONS MADE BY THE HUC HEREUNDER REMAINS WITH THE HUC. THE HUC MAY AT ANY TIME ADD ADDITIONAL CUSTOMERS TO OR MAKE NEW EXTENSIONS TO AN EXISTING EXTENSION WITHOUT THE CONSENT OF ANY CUSTOMER OR CUSTOMERS WHO CONTRIBUTED TO THE COST OF THE EXISTING EXTENSION, AND WITHOUT INCURRING ANY LIABILITY FOR REFUNDING CONTRIBUTIONS OTHER THAT AS PROVIDED HEREIN. 7. CONSTRUCTION STANDARDS ALL NATURAL GAS DISTRIBUTION SYSTEM EXTENSIONS CONSTRUCTED HEREUNDER SHALL CONFORM TO THE HUC'S STANDARDS OF CONSTRUCTION, AND SHALL MEET THE REQUIREMENTS OF GOVERNMENTAL REGULATORY BODIES HAVING JURISDICTION. 8. GENERAL PROVISIONS A. IF IN THE HUC'S SOLE JUDGMENT THE HUC NEEDS AN EASEMENT OVER CUSTOMER'S PROPERTY IN ORDER TO FURNISH SERVICE TO CUSTOMER, CUSTOMER SHALL PROVIDE HUC WITH AN EASEMENT AT NO EXPENSE TO HUC. IF IN THE HUC'S SOLE JUDGMENT HUC NEEDS AN EASEMENT OR EASEMENTS OVER PROPERTY NOT OWNED BY CUSTOMER IN ORDER TO FURNISH SERVICE TO CUSTOMER, CUSTOMER SHALL OBTAIN THE EASEMENT(S) AT NO EXPENSE TO HUC. B. NO STRUCTURES SHALL BE PLACED OVER THE ROUTE OF THE HUC'S NATURAL GAS FACILITIES. HOWEVER, SUCH PROPERTY MAY BE USED FOR GARDENS AND OTHER PURPOSES WHICH WILL NOT INTERFERE WITH MAINTENANCE AND REPLACEMENT OF HUC'S NATURAL GAS FACILITIES. C. PROPERTIES SUBJECT TO AN EASEMENT GRANTED TO HUC SHALL BE GRADED TO A LEVEL WHICH SHALL NOT BE ABOVE OR MORE PAGE 4OF6 THAN 6 INCHES BELOW FINISHED GRADE, PRIOR TO THE TIME INSTALLATION OF NATURAL GAS FACILITIES IS COMMENCED BY HUC. THE HUC SHALL BE NOTIFIED IN ADVANCE OF ANY CHANGES IN GRADE AFTER THE NATURAL GAS FACILITIES HAVE BEEN INSTALLED BY HUC, AND HUC SHALL BE REIMBURSED FOR ANY AND ALL COSTS INCURRED AS A RESULT OF SUCH CHANGE. D. HUC SHALL NOT BE LIABLE FOR DAMAGE TO TREES, SHRUBS, FENCES, SIDEWALKS, DRIVEWAYS OR OTHER OBSTRUCTIONS INCIDENT TO THE INSTALLATIONS, MAINTENANCE OR REPLACEMENT OF NATURAL GAS FACILITIES, UNLESS SUCH DAMAGE IS CAUSED BY ITS OWN NEGLIGENCE. PAGE 5 OF6 ��V/tCHIMS�y gTlUTtEg HUTCHINSON UTILITIES COMMISSION 225 MICHIGAN STREET HUTCHINSON MINNESOTA 55350 DWIGHT BORDSON PRESIDENT CRAIG LENZ VICE PRESIDENT LEON JOHNSON SECRETARY MONTY MORROW COMMISSIONER ANTHONY HANSON COMMISSIONER MICHAEL KUMM GENERAL MANAGER TEL 324587 -4746 FAX 324587 -4721 AGREEMENT THIS AGREEMENT ( "AGREEMENT ") IS MADE AND ENTERED INTO THIS �o DAY OF 204-2, TO BE EFFECTIVE AS OF THE 1 ST DAY OF MAY, 2013, BY AND BETWEEN HUTCHINSON TECHNOLOGY, INC. ( "HTI") WITH OFFICES LOCATED AT 40 WEST HIGHLAND PARK DRIVE NE, HUTCHINSON._ MINNESO55.350 AND HUTCHINSON UTILITIES COMMISSION ( "HUC ") A MINNESOTA MUNICIPAL UTILITY LOCATED AT 225 MICHIGAN ST SE, HUTCHINSON, MINNESOTA, 55350. HTI AND HUTCHINSON SHALL HEREINAFTER SOMETIMES BE REFERRED TO SEPARATELY AS "PARTY" OR JOINTLY AS "PARTIES." WHEREAS, HTI DESIRES TO PURCHASE, AND HUC SHALL PROVIDE, FIRM GAS FOR USE AT HTI'S HUTCHINSON HEADQUARTERS /PLANT; AND, WHEREAS, HTI DOES ACKNOWLEDGE THAT HUC WILL, IN RELIANCE UPON THIS AGREEMENT, ENTER INTO AN AGREEMENT TO PROVIDE FIRM GAS AND TRANSPORTATION. NOW. THEREFORE, IN CONSIDERATION OF THE FOREGOING AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, THE PARTIES MAKE THE FOLLOWING AGREEMENT: HUC SHALL PROVIDE, AND HTI SHALL ACCEPT, FIRM GAS COMMENCING MAY 1, 2013, AT 9:00 A.M. AND TERMINATING ON MAY 1, 2014, AT 9:00 A.M. I . AyA1LABILITY A. GENERAL FIRM TRANSPORTATION SERVICE UNDER THIS AGREEMENT SHALL BE AVAILABLE TO HTI UNDER THE TERMS AND CONDITIONS OF THIS AGREEMENT. THIS SERVICE MAY NOT BE CURTAILED OR INTERRUPTED EXCEPT PURSUANT TO THE TERMS OF THIS AGREEMENT. B. THE COST FOR ADDITIONAL CAPACITY OR NEW INSTALLATIONS UTILIZING THIS SERVICE SHALL BE BILLED TO HTI. HTI MUST SUBMIT A_ WRITTEN REQUEST TO HUC FOR ADDITIONAL CAPACITY /NEW INSTALLATIONS. ALL ADDITIONAL COSTS MUST BE PRE - APPROVED, IN WRITING, BY HTI. C. COMPLIANCE WITH AGREEME SERVICE UNDER THIS AGREEMENT SHALL NOT COMMENCE UNTIL BOTH PARTIES HAVE FULLY EXECUTED THIS AGREEMENT AND COMPLIED WITH ALL RELEVANT REQUIREMENTS CONTAINED HEREIN. D. AGREEMENT CHANGES HUC HAS THE RIGHT TO MODIFY THIS AGREEMENT DUE TO CHANGES IMPOSED BY HUC'S CURRENT NATURAL GAS TRANSMISSION PROVIDERS AND FEDERAL, STATE AND LOCAL REGULATORS /AUTHOR[TIES. 2. TERM THE INITIAL TERM FOR SERVICE UNDER THIS AGREEMENT IS ONE (1) YEAR. HTI MUST NOTIFY HUC IN WRITING THREE (3) MONTHS PRIOR TO THE EXPIRATION OF THE TERM IF HTI DESIRES TO CONTINUE SERVICE UNDER THIS AGREEMENT. IF HTI HAS COMPLIED WITH ALL TERMS OF THIS AGREEMENT, AND HAS NO OUTSTANDING ARREARAGES. HTI MAY, UPON WRITTEN NOTICE PROVIDED TO HUC THREE (3) MONTHS PRIOR TO THE EXPIRATION OF THE CURRENT TERM, EXTEND THIS AGREEMENT FOR A MUTUALLY AGREED -UPON PERIOD. IF A TERM FOR THE EXTENSION CANNOT BE AGREED UPON BY HTI AND HUC. THE PARTIES AGREE TO A MINIMUM TERM OF ONE (1) YEAR. IF SUCH TIMELY NOTICE IS NOT PROVIDED BY HTI, HUC IS NOT OBLIGATED TO RENEW SERVICE FOR HTI. [21 3. RATES A. RATES FOR SERVICE THE FOLLOWING CHARGES SHALL APPLY TO THE FIRM COMMODITY AND TRANSPORTATION CAPACITY TO BE PROVIDED TO HTI BY HUC: 1. COMMODITY MONTHLY INSIDE FERC VENTURA INDEX, AS PUBLISHED BY PLATT'S "GAS DAILY ", PLUS /MINUS THE NNG VENTURA TO NBPL VENTURA MONTHLY PREMIUM. MONTHLY INDEX AS PUBLISHED IN PLATTS FERC GAS MARKET REPORT FOR NORTHERN NATURAL GAS CO. AT VENTURA, IOWA PLUS OR MINUS ANY INDEX PREMIUM OR DISCOUNT BASED ON CURRENT MARKET CONDITIONS AT THE TIME THE GAS IS PURCHASED. HUC SHALL PURCHASE HTI'S FIRM BASE LOAD NATURAL GAS REQUIREMENTS, FOR THE FOLLOWING MONTH, WITHIN 24 BUSINESS HOURS OF RECEIPT OF HTI'S FIRST OF THE MONTH BASE LOAD NOMINATION. (SEE SECTION 7, PARAGRAPH "A ") 2. MONTHLY DEMAND CHARGE MONTHLY DEMAND CHARGE PER -- $10.33 MCF OF BILLING DEMAND 3. TRANSPORTATION CHARGE TRANSPORTATION CHARGE, PER METERED MCF - - $0.87 THIS CHARGE SHALL BE ADJUSTED, STARTING ON MAY 1, 2012 AND ON EACH MAY 1 THEREAFTER, ACCORDING TO ANY CHANGE IN THE CPI-U FROM THE PREVIOUS YEAR', PROVIDED HOWEVER, THAT SUCH CHARGE SHALL NEVER BE LESS THAN $0.83. CPI -U SHALL MEAN THE ANNUAL AVERAGE CONSUMER PRICE INDEX - ALL URBAN CONSUMERS AS PUBLISHED BY THE UNITED STATES DEPARTMENT OF LABOR, BUREAU OF STATISTICS, WASHINGTON, C.C.. 4. TAXES THE ABOVE CHARGES DO NOT INCLUDE ANY TAXES. [31 LEVEL OF NATURAL GAS REQUIRED FOR THE FOLLOWING MONTH. IN THE EVENT HUC HAS NOT RECEIVED THE BASE LOAD NOMINATION FROM HTI BY THE ABOVE DESIGNATED TIME, HUC SHALL NOMINATE THE CURRENT MONTH'S BASE LOAD LEVEL FOR THE FOLLOWING MONTH. B. DAILY NOMINATIONS HTI, OR ITS DESIGNATED AGENT, SHALL NOTIFY HUC OF ANY REQUESTED CHANGE TO ITS NOMINATION. IN WRITING, BY 7:00 A.M. C.C.T AT LEAST ONE (1 ) BUSINESS DAY PRIOR TO THE DATE OF THE REQUESTED CHANGE. HUC SHALL GRANT SUCH REQUESTS IN ITS REASONABLE DISCRETION. C. GAS DAY THE GAS DAY SHALL RUN FROM 9:00 A.M. TO 9:00 A.M. CENTRAL STANDARD TIME. 8. DAILY SWING SUPPLY HUC AGREES TO PROVIDE DAILY SWING SUPPLY TO HTI AT THE APPLICABLE PRICE, AS PUBLISHED FOR THE DAY BY PLATT'S "GAS DAILY" IN ITS "DAILY PRICE SURVEY ($ /DTH)" FOR "NORTHERN, VENTURA" "MIDPOINT" ( "DAILY INDEX ") PLUS /MINUS $0.01. SWING SUPPLY IS DEFINED AS SUPPLY INCREASES OR DECREASES, FROM CONTRACTED LEVELS, NOMINATED AT LEAST 24 HOURS PRIOR TO THE START OF THE GAS DAY. 9. REAL-TIME BALANCING HUC SHALL PROVIDE HTI WITH REAL -TIME BALANCING, BASED ON THE FOLLOWING: BEST EFFORTS REAL -TIME SWING NOMINATED LESS THAN 24 HOURS PRIOR TO THE END OF THE GAS DAY ON A BEST EFFORTS BASIS, PRICED AT THE APPLICABLE PRICE, AS PUBLISHED FOR THE DAY BY PLATT'S "GAS DAILY" IN ITS "DAILY PRICE SURVEY ($ /DTH)" FOR "NORTHERN, VENTURA" "MIDPOINT" (`'DAILY INDEX "), PLUS /MINUS $0.15. [61 10. AGENTS A. DESIGNATION OF AGENTS HTI MAY DESIGNATE AN AGENT FOR NOMINATING VOLUMES FOR TRANSPORTATION ON HUC'S SYSTEM. HTI SHALL NOTIFY HUC IN WRITING AT LEAST FIFTEEN (1 5) BUSINESS DAYS PRIOR TO THE FIRST DAY OF THE MONTH IN WHICH SUCH SERVICES WILL BE UTILIZED THAT A THIRD PARTY HAS BEEN DESIGNATED AS HTI'S AGENT AND SHALL ACT AS AGENT FOR HTI FOR PURPOSES OF NOMINATIONS, BILLING, AND /OR OTHER FUNCTIONS AS SPECIFIED BY HTI. IF HTI UTILIZES AN AGENT FOR ANY OR ALL OF THESE PURPOSES, HTI AGREES THAT INFORMATION TO BE SUPPLIED BY HUC TO HTI MAY BE SUPPLIED ONLY TO THE AGENT AND THAT INFORMATION SUPPLIED BY THE AGENT TO HUC SHALL BE RELIED UPON BY HUC AS IF PROVIDED BY HTI. HUC SHALL BE HELD HARMLESS FOR ANY ERRORS BETWEEN HTI AND SAID AGENT. SUCH DESIGNATION SHALL REMAIN IN EFFECT UNTIL HTI NOTIFIES HUC IN WRITING THAT THE PREVIOUSLY DESIGNATED AGENT IS NO LONGER ITS AGENT. B. INFORMATION REQUIRED HTI SHALL PROVIDE THE FOLLOWING INFORMATION TO HUC CONCERNING EACH AGENT USED BY HTI FOR ANY PURPOSE: NAME AND ADDRESS OF THE AGENT OR AGENTS; 2. PRIMARY AND SECONDARY CONTACT PERSONS FOR THE AGENT OR AGENTS; 3. TELEPHONE AND FACSIMILE NUMBER FOR PRIMARY AND SECONDARY CONTACT PERSONS FOR THE AGENT OR AGENTS; AND 4. TWENTY -FOUR HOUR TELEPHONE NUMBER FOR WEEKENDS AND HOLIDAYS FOR THE AGENT OR AGENTS. [71 C. HTI TO REMAIN LIABLE HTI MAY ELECT TO HAVE ITS BILL FOR SERVICES UNDER THIS AGREEMENT SENT DIRECTLY TO ITS AGENT. HOWEVER, IF HTI SELECTS THIS OPTION. HTI REMAINS FULLY LIABLE FOR ANY BILL RENDERED BY HUC. ALL DEADLINES SET FORTH IN THIS AGREEMENT SHALL CONTINUE TO APPLY, REGARDLESS OF WHETHER HUC'S BILL IS SENT DIRECTLY TO HTI OR TO HTI'S DESIGNATED AGENT. 1 1 . FORCE MAJEURE. A. DEFINITION EITHER PARTY SHALL BE EXCUSED FROM PERFORMANCE UNDER THIS AGREEMENT BY FORCE MAJEURE ACTS AND EVENTS. "FORCE MAJEURE" SHALL MEAN ACTS AND EVENTS NOT WITHIN THE CONTROL OF THE PARTY CLAIMING FORCE MAJEURE, AND SHALL INCLUDE, BUT NOT BE LIMITED TO, ACTS OF GOD, STRIKES, LOCKOUTS, MATERIAL, EQUIPMENT, OR LABOR SHORTAGES, WARS, RIOTS, INSURRECTIONS, EPIDEMICS, LANDSLIDES, EARTHQUAKES, FLOODS, FIRES, STORMS, GOVERNMENT OR COURT ORDERS, CIVIL DISTURBANCES, EXPLOSIONS, BREAKAGE OR ACCIDENT TO MACHINERY OR PIPELINES, FREEZING OF WELLS OR PIPELINES, OR ANY OTHER CAUSE OF WHATEVER KIND, WHETHER SPECIFICALLY ENUMERATED HEREIN OR NOT, THAT IS NOT WITHIN THE CONTROL OF THE PARTY CLAIMING FORCE MAJEURE. B. EFFECT IF HUC IS UNABLE TO PROVIDE SERVICE UNDER THIS AGREEMENT DUE TO A FORCE MAJEURE ACT OR EVENT, HUC'S OBLIGATION TO PROVIDE SERVICE UNDER THIS AGREEMENT SHALL BE SUSPENDED FOR THE DURATION OF THE ACT OR EVENT. HUC SHALL NOTIFY HTI OF THE FORCE MAJEURE EVENT AS SOON AS REASONABLY POSSIBLE BY ANY MEANS PRACTICABLE. INCLUDING, BUT NOT LIMITED TO, TELEPHONE OR FACSIMILE, AND SHALL CONFIRM THE DETAILS OF THE FORCE MAJEURE ACT OR EVENT IN WRITING WITHIN A REASONABLE AMOUNT OF TIME THEREAFTER. HUC SHALL WORK TO S 2. REMEDY THE FORCE MAJEURE ACT OR EVENT AS SOON AS REASONABLY POSSIBLE AND SHALL KEEP HTI APPRISED OF THE TIME. DATE, AND CIRCUMSTANCES WHEN SERVICE UNDER THIS AGREEMENT SHALL BE RESTORED. HTI IS NOT REQUIRED TO PAY ANY CHARGES UNDER THIS AGREEMENT DURING THE TERM OF THE FORCE MAJEURE ACT OR EVENT. IF HTI IS UNABLE TO TAKE SERVICE UNDER THIS AGREEMENT DUE TO A FORCE MAJEURE ACT OR EVENT, HOC'S OBLIGATION TO PROVIDE SERVICE UNDER THIS AGREEMENT SHALL BE SUSPENDED FOR THE DURATION OF THE ACT OR EVENT. HTI SHALL NOTIFY HUC OF THE FORCE MAJEURE EVENT AS SOON AS REASONABLY POSSIBLE BY ANY MEANS PRACTICABLE, INCLUDING, BUT NOT LIMITED TO, TELEPHONE OR FACSIMILE, AND SHALL CONFIRM THE DETAILS OF THE FORCE MAJEURE ACT OR EVENT IN WRITING WITHIN A REASONABLE AMOUNT OF TIME THEREAFTER. HTI SHALL WORK TO REMEDY THE FORCE MAJEURE ACT OR EVENT AS SOON AS REASONABLY POSSIBLE AND SHALL KEEP HUC APPRISED OF THE TIME, DATE, AND CIRCUMSTANCES WHEN HTI WILL RESUME SERVICE UNDER THIS AGREEMENT. HUC IS NOT REQUIRED TO PROVIDE SERVICE UNDER THIS AGREEMENT DURING THE TERM OF THE FORCE MAJEURE ACT OR EVENT. 12. LAWS, REGULATIONS, AND ORDERS. SERVICE UNDER THIS AGREEMENT IS SUBJECT TO ALL PRESENT AND FUTURE VALID LAWS, ORDERS, RULES, REGULATIONS, ETC, ISSUED BY ANY FEDERAL, STATE, OR LOCAL AUTHORITY HAVING JURISDICTION OVER THE MATTERS SET FORTH HEREIN. 13. MISCELLANEOUS PROVISIONS. A. DECLARATION OF INVALIDITY IF ANY PROVISION OF THIS AGREEMENT IS DETERMINED TO BE INVALID, VOID, OR UNENFORCEABLE BY ANY COURT OR OTHER ENTITY HAVING JURISDICTION, SUCH [91 DETERMINATION SHALL NOT INVALIDATE, VOID, OR MAKE UNENFORCEABLE ANY OTHER PROVISION, AGREEMENT OR COVENANT OF THIS AGREEMENT, AND THE PARTIES AGREE TO NEGOTIATE IN GOOD FAITH A REPLACEMENT TO SUCH INVALID, VOID OR UNENFORCEABLE PROVISION AND /OR ANY OTHER AMENDMENTS AS MAY BE NECESSARY TO ENSURE THAT THE AGREEMENT AS A WHOLE REFLECTS THE ORIGINAL INTENTIONS OF THE PARTIES. B. NO CONTINUING WAIVER NO WAIVER OF ANY BREACH OF THIS AGREEMENT SHALL BE HELD TO BE A WAIVER OF ANY OTHER OR SUBSEQUENT BREACH. C. LIMITATION ON AGREEMENT THE PARTIES EXPRESSLY ACKNOWLEDGE AND AGREE THAT IT IS NEITHER THE PURPOSE OF THIS AGREEMENT NOR THEIR INTENT TO CREATE A PARTNERSHIP, JOINT VENTURE CONTRACT OR COMPANY, ASSOCIATION OR TRUST, FIDUCIARY RELATIONSHIP OR PARTNERSHIP BETWEEN THEM. EXCEPT AS EXPRESSLY PROVIDED HEREIN, NEITHER PARTY SHALL HAVE ANY AUTHORITY TO ACT FOR OR ASSUME ANY OBLIGATIONS, OR RESPONSIBILITIES ON BEHALF OF, THE OTHER PARTY. D. COMPLETE AGREEMENT THIS AGREEMENT SETS FORTH ALL UNDERSTANDINGS BETWEEN THE PARTIES AS OF THE EFFECTIVE DATE HEREIN. ANY PRIOR CONTRACTS, UNDERSTANDINGS AND REPRESENTATIONS, WHETHER ORAL OR WRITTEN, RELATING TO THE MATTERS ADDRESSED IN THIS AGREEMENT ARE MERGED INTO AND SUPERSEDED BY THIS AGREEMENT. THIS AGREEMENT MAY BE AMENDED ONLY BY A WRITING EXECUTED BY BOTH PARTIES. E. GOVERNING LAW THE INTERPRETATION AND PERFORMANCE OF THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF MINNESOTA, EXCLUDING, HOWEVER, ANY CONFLICT OF LAW THAT WOULD APPLY THE LAW OF ANOTHER JURISDICTION. [101 F. CONFIDENTIALITY REQUIRED NEITHER PARTY SHALL DISCLOSE DIRECTLY OR INDIRECTLY WITHOUT THE PRIOR WRITTEN CONSENT OF THE OTHER PARTY THE TERMS OF THIS AGREEMENT TO A THIRD PARTY, EXCLUDING HTI'S AGENT, EXCEPT (1) IN ORDER TO COMPLY WITH ANY APPLICABLE LAW, LEGAL PROCESS, ORDER, REGULATION, OR EXCHANGE RULE; (II) TO THE EXTENT NECESSARY FOR THE ENFORCEMENT OF THIS AGREEMENT; AND (III) TO THE EXTENT NECESSARY TO IMPLEMENT AND PERFORM THIS AGREEMENT. EACH PARTY SHALL NOTIFY THE OTHER PARTY OF ANY DEMAND OR OF _WHICH IT IS AWARE WHICH MAY RESULT IN DISCLOSURE OF THE TERMS OF THIS AGREEMENT (OTHER THAN AS PERMITTED HEREUNDER) AND USE REASONABLE EFFORTS TO PREVENT OR LIMIT THE DISCLOSURE. THE PARTIES SHALL BE ENTITLED TO ALL REMEDIES AVAILABLE AT LAW OR IN EQUITY TO ENFORCE OR SEEK RELIEF IN CONNECTION WITH THIS CONFIDENTIALITY OBLIGATION. THE TERMS OF THIS AGREEMENT SHALL BE KEPT CONFIDENTIAL BY THE PARTIES HERETO FOR TWO YEARS FROM THE EXPIRATION OR TERMINATION OF THIS AGREEMENT. IN THE EVENT THAT DISCLOSURE IS REQUIRED BY A GOVERNMENTAL BODY OR APPLICABLE LAW, THE PARTY SUBJECT TO SUCH REQUIREMENT MAY DISCLOSE THE MATERIAL TERMS OF THIS AGREEMENT TO THE EXTENT SO REQUIRED, BUT SHALL PROMPTLY NOTIFY THE OTHER PARTY, PRIOR TO DISCLOSURE, AND SHALL COOPERATE (CONSISTENT WITH THE DISCLOSING PARTY'S LEGAL OBLIGATIONS) WITH THE OTHER PARTY'S EFFORTS TO OBTAIN PROTECTIVE ORDERS OR SIMILAR RESTRAINTS WITH RESPECT TO SUCH DISCLOSURE AT THE EXPENSE OF THE OTHER PARTY. G. AUTHORITY TO ENTER AGREEMENT EACH PARTY TO THIS AGREEMENT REPRESENTS AND WARRANTS THAT IT HAS FULL AND COMPLETE AUTHORITY TO ENTER INTO AND PERFORM THIS AGREEMENT. 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. NO THIRD PARTY BENEFICIARY THERE IS NO THIRD PARTY BENEFICIARY TO THIS AGREEMENT. [ 121 THIS AGREEMENT SETS FORTH ALL TERMS AGREED UPON BETWEEN THE PARTIES, AND NO PRIOR ORAL OR WRITTEN AGREEMENTS SHALL BE BINDING. THIS AGREEMENT SHALL NOT BE ALTERED, AMENDED OR MODIFIED EXCEPT AS IN WRITING AND EXECUTED BY BOTH PARTIES. HUTCHINSON UTILITIES COMMISSION - BY: TITLE: COMMISSION DATE: /T�� /1 i3 WITNESS: DATE: nc7nrr- HUTCHINSON TECHNOLOGIES, INC. [ 131 NAME: TITLE: �< .c. �..� ^q �c a,-V,'-Sol r- -7 DATE.- WITNESS: i DATE: SERVICE POLICIES - ELECTRIC 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): $300.00 Installation Charge up to 100 ft.; $2.00 /ft. in excess of 100 ft. 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 -11 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 secondary transition cabinet. HUC's Electric Division may be contacted for further details. 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 transition cabinet. HUC's Electric Division may be contacted for further details. 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 -'/ 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. MEMBERSHIP /DUES /CONVENTIONS Employees are encouraged to join and participate in professional and technical associations, which are expected to enhance job performance. The I Itilities, HUC will pay the Aassociation dues if membership relates directly to an employee's job with the Utilities HUC. The appropriate Staff Personnel must approve payment of membership dues. The General Manager must approve attendance at association meetings and/or conventions OF aaRUal meetings. Attendance shall be limited to one major conference per year. This limitation does not apply to workshops, seminars and courses, which the W -HUC directs employees to attend. The t-y -HUC will pay the attendance fee for pre- approved meetings and expenses incurred.