07-26-1971 HUCM6.
Special Meeting
July 26, 1971.
A special meeting of the Hutchinson Utilities Commission was held
on July 26, 1971 at two o'clock P. M. at the Commissionts meeting
room.
All Commissioners were present; also Orville Kuiken, Superintendent
and Steve Wacker, Assistant Manager.
Motion was made by Commissioner Filk seconded by Commissioner Tracy
and unanimously carried designating 460,475.00 of the $170,000
Certificate of Deposit belonging to the Natural Gas Division to the
Bond Reserve Account (Sinking Fund)t also to open a Bond ,account
(Sinking Fund) .
Motion was made by Commissioner Tracy, seconded by Commissioner
Filk to proceed with the cathodic survey and authorize the Gas
Division to complete the installation of cathodic protection. Motion
was unanimously carried.
Motion was made by Commissioner Tracy, seconded by Commissioner
Filk and unanimously carried to increase the monthly salary of
the following; employees, effective July 1, 1971:
Ivan Larson 49.50
George Nelson 39.50
Dwayne Anderson 150-00
Motion was made by Commissioner Tracy, seconded by Commissioner Filk
and unanimously carried to set up a Bond Account and Bond Reserve
Account for the remaining 1967 Bond issue and 1971 Bond issue
(belonging to the Municipal Electric Plant) in the Citizens Bank &
Truest Company, Hutchinson., Minnesota.
A proposed change in the gas rate structure was presented to the
Commission by Orville Kuiken and Steve Wacker. After a review And
study, a motion was made by Commissioner Tracy, seconded by Commissioner
Filk and unanimously carried to accept the rate. ('Proposed rate
attached.) The Secretary was instructed to present the proposed
rate to the City Council.
There being no further business, motion was made, seconded and
unanimously carried to adjourn the meeting.
ATTE
�
Y. Y. , e etary.
Copies to: Hinmrd Quads
Herb, Filk
Clinton Tracy
Ralph Young
Bys Ruth HAIM1
Orville Kuiben
Steve Wacker
Gentlemen:
This is a condensed study of what the proposed gas
rate increase may do to the cash income of the gas uttility.
There are so many variables that only an educated guess
can be given without an extremely detailed study.
The report will be discussed in further detail
verballys however the following facts should be kept in
mind:
1. All income figures are from the fiscal year
70 -71.
2. The highest monthly consumption of the fiscal
year 70-71 has been used to figure all accounts.
3. Gas consumption determined the customer
category.
4. Because all comparisons used are from the highest
monthly consumption of the year, the percentage
increase will be the least possible.
5. Some percentages are estimated - these will be
pointed out during the discussion.
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OAS RATES
RESIDENTIAL & SMALL COMMERCIAL (FIRM)
First
500
cu,
fto
per month
per MCF
Next
1,500
cue
ft,
per month
per MCF
Next
3,000
cu.
ft.
per month
per MCF
Next
5,000
cu,
ft
per month
per MCF
Next
40,000
cu.
ft.
per month
per MCF
)text
50,000
cu.
ft.
per month
per MCF
Next
Balance
of 1000 MCF Per clay Min.
Demand Charge
Present Wised
$ 1.35
$ 1.75
1.50
1.50
1.10
1.20
1.00
1.10
.90
.98
.80
.88
.70
.77
MIN MM CHARGE - x1975 per meter per month
SMALL INDUSTRIAL
Interruptible Service
First 7,000 cu. ft, per month per MCF
Next 13,000 cu. ft. per month per MCF
Next 30,000 cu. ft. per month per MCF
Next 50,000 cu* ft, per month per MCF
Balance
MINDSUM CHARGE - x2.00 per meter per month
LARGE DWUSTRIAL
Interruptible Service
First 50 *000 cu. ft, per month
Next 450,000 cu,, ft. per month per MCF
Balance
Present
$ .45
.42
.39
.39
,39
Present
S 20.77
.39
.39
.60
.55
. e2
.48
.43
Proposed
10.00
.45
.42
LARGE COMMERCIAL - A Firm Customer that has facilities (FIRM)
which will
use in excess of 200 MCF per month
MINIMUM CHARGE - $5.00
per meter per month
Present
Pro
First
±,000 cu. ft. per month per MCF
1. iv
Next
10,000 cu. ft. per month per MCF
1.00
1110
Next
50,000 cue ft* per month per MCF
.90
.85
Next
100,000 cu. ft. per month per MCF
.80
.75
Balance
.70
.68
LARGE INDUSTRIAL (FIRM)
FIRM INDUSTRIAL with contract
of 1000 MCF Per clay Min.
Demand Charge
Present
Pro sod
Cmmodity charge
.40
.42
SMALL INDUSTRIAL
Interruptible Service
First 7,000 cu. ft, per month per MCF
Next 13,000 cu. ft. per month per MCF
Next 30,000 cu. ft. per month per MCF
Next 50,000 cu* ft, per month per MCF
Balance
MINDSUM CHARGE - x2.00 per meter per month
LARGE DWUSTRIAL
Interruptible Service
First 50 *000 cu. ft, per month
Next 450,000 cu,, ft. per month per MCF
Balance
Present
$ .45
.42
.39
.39
,39
Present
S 20.77
.39
.39
.60
.55
. e2
.48
.43
Proposed
10.00
.45
.42
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