12-09-1982 HUCMSpecial Meeting
December 9, 1982
All Commissioners were present, also present were Mgr. Alexander,
Ivan Larson and Ruth Hakel.
President Filk called the meeting to order at 12:45 p.m. The
meeting was scheduled for the purpose of taking any action deemed
necessary to adjust gas rates.
Ivan Larson presented a natural gas rate evaluation. After
reviewing comparison of consumption and operating income for
all gas classifications within the ten month period, a recommendation
was made in the fuel adjustment area. It being to increase the
base from $1.90 to $4.00. (This would decrease the fuel adjustment
and increase energy steps by $2.10.) Rate adjustment to be
effective with the February, 1983 statement (January usage).
Motion was made by Commissioner Lyke, seconded by Commissioner
Daggett to accept the rate adjustment and requested management
to present the adjustment for approval to the City Council at
the next regular meeting (December 14, 1982). Motion was carried.
After discussion regarding natural gas charge to the Municipal
Electric Plant, staff was directed to increase the present charge
of six cents ($.06) to thirty cents ($.30) per MCF. This new
charge to be effective December, 1982 thru May, 1983.
Mgr. Alexander reported the Gas Division having received a
refund of $89,599.18 for the period from October 27, 1978 through
October 26, 1982. This refund is due to Northern Natural Gas
Company's adoption of FERC normalization tax procedure.
Motion was made by Commissioner Daggett, seconded by Commissioner
Lyke to apply the refund from Northern Natural Gas Company to
the December fuel adjustment. Motion was carried.
Mgr. Alexander reported that Power Plant Superintendent Walter
Hombach had a prospective buyer for unit #1 generator.
Motion was made by Commissioner Lyke, seconded by Commissioner
Daggett to dispose of unit #1. The Commission authorized Mgr.
Alexander to tear down the unit, placing into inventory any
parts which could be used on unit Yk2, sell the balance. Motion
was unanimously carried.
F�
i:y
Meter deposits were discussed. No action was taken. It was
suggested to review the subject in another year.
Motion was made by Commissioner Lyke, seconded by Commissioner
Daggett to adjourn the meeting at 1:50 p.m.
r,
ATTEST
H. W. Filk, President
I
Thomas B. Lyke, �/ecretary
1
FUEL COST ADJUSTMENT
(GAS)
Fuel Cost Adjustment is based on cost of fuel delivered to
utilities border station. Adjustment cost shall be based
on the volumes purchased for the classifications. If pro-
pane is injected, 14.75 gallons of propane equals 1 MCF of
gas when injected at an average of 1,350 BTU's per cubic
foot. Fuel cost shall include item #151 and #152 of the
Federal Energy Regulatory Commission's Uniform System of
Accounts. Costs will be added together and divided by the
amount of gas purchased by the system.
Fuel Adjustment will increase by one cent (1�) per MCF
sold by each whole cent (1�) above ($4.00) four dollars
per 1000 cubic feet total fuel cost.
Computations of fuel adjustment shall be made monthly. The
resultant adjustment, if any, shall be applicable for the
next subsequent month.
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HUTCHINSON UTILITIES COMMISSION
GRF -1 -83
RESIDENTIAL AND COMMERCIAL GAS (FIRM)
CODE 060 CODE 065
AVAILABILITY:
Available to any customer who
gas per day.
400 Cubic Feet or less
Next 3600 Cubic Feet @
Excess Cubic Feet @
Gas will be supplied under th
can be received from Northern
uses less than 70 MCF of
$3.34 (minimum per month)
$5.20 per MCF
$4.75 per MCF
Ls rate only if natural gas
Natural Gas Company.
This rate is subject to Fuel Cost Adjustment.
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HUTCHINSON UTILITEIS COMMISSION
GSIF -1 -83
SMALL INDUSTRIAL GAS (FIRM)
CODE 070 CODE 071
AVAILABILITY:
Available to all customers who use in excess of 200 MCF
of gas per month and less than 200 MCF of gas per day.
Customers applying for this rate, or changing demands
must make written application at the Utility office before
July 1 of the year service or changes are wanted.
Anniversary date of this demand will be September 1 to
August 31 of each year.
RATE:
Monthly Demand Charge per
MCF of Billing Demand
$6.00 per MCF
MINIMUM MONTHLY CHARGE:
The demand charge for month.
CONTRACT DEMAND:
Commodity Charge per
MCF of Gas Delivered
$4.35 per MCF
The contract demand shall be the maximum daily volume of
natural gas delivered to the customer. The contract de-
mand shall be agreed upon by customer and utility and set
forth in the written application if received before July 1.
Gas will be supplied under this rate only if natural gas
can be received from Northern Natural Gas Company.
PENALTY CONTRACT DEMAND:
A charge of $10.00 per MCF for all gas used in excess of
contract demand.
This rate is subject to Fuel Cost Adjustment.
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HUTCHINSON UTILITIES COMMISSION
GLIF -1 -83
LARGE INDUSTRIAL GAS (FIRM)
CODE 089 CODE 091
AVAILABILITY:
Available to all customers who use in excess of 200 MCF
of gas per day. Customers qualifying for this rate must
make written application to the Utility specifying maxi-
mum contract demand of gas needed per day before July 1
of the year gas is needed. The anniversary date of this
demand will be September 1 through August 31 of each year.
Regulations do not permit new customers on this rate.
Monthly Demand Charge per
MCF of Billing Demand
$4.18 per MCF
MINIMUM MONTHLY CHARGE:
The demand charge for month.
CONTRACT DEMAND:
Commodity Charge of
Gas per MCF Delivered
$4.35 per MCF
The contract demand shall be the maximum daily volume of
natural gas delivered to the customer. The contract de-
mand shall be agreed upon by the customer and utility and
set forth in the written application and received before
July 1.
Gas will be supplied under this rate only if natural gas
can be received from Northern Natural Gas Company.
PENALTY CONTRACT,DEMAND:
A charge of $10.00 per MCF for all gas used in excess of
the contract demand.
This rate is subject to Fuel Cost Adjustment.
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HUTCHINSON UTILITIES COMMISSION
GI -1 -83
INTERRUPTIBLE GAS
CODE 080 CODE 095
AVAILABILITY:
Available to commercial and industrial customers who
have an alternate source of fuel. The customer must
have been on this rate prior to January 1, 1976.
Delivery of gas purchased under this rate may be cur-
tailed as the system load changes as determined by the
Utility.
Minimum - $10.00
First 10,000 MCF @ $4.35 per MCF
Excess MCF @ $4.20 per MCF
This rate is subject to Fuel Cost Adjustment.
Residential & Commercial Gas (Firm) Gas
A typical bill for October 1982 with 20,000 cubic feet
of usage:
400 CF or Less
@ $2.50 =
$ 2.50
3600 CF
@ $3.10 per MCF =
11.16
16000 CF
@ $2.65 per MCF =
42.40
$ 56.06
Fuel Adjustment for
October 1982 $2.27 per
MCF
20,000 CF
@ $2.27 per MCF =
45.40
Total Bill
$101.46
Proposed Rate
400 CF or Less @ $3.34 = $ 3.34
3600 CF @ $5.20 per MCF = 18.72
16000 CF @ $4.75 per MCF = 76.00
$ 98.06
Fuel Adjustment based on October 1982
$.17 per MCF
20,000 CF @ $.17 per MCF = 3.40
Total Bill $101.46
1
Regular Meeting
December 27, 1982
All Commissioners were present, also present were Mgr. Alexander
and Ruth Hake 1.
President Filk called the meeting to order at 1:00 p.m.
The November 30, 1982 minutes were reviewed. A motion was made
by Commissioner Lyke, seconded by Commissioner Daggett to approve
the minutes as presented. Motion was carried.
A motion was made by Commissioner Daggett, seconded by Commissioner
Lyke to approve the minutes of the December 9, 1982 Special Meeting.
Motion was unanimously carried.
The November electric and gas payables were then considered.
A motion was made by Commissioner Daggett, seconded by Commissioner
Lyke to accept the electric and gas payables for November, 1982.
Motion was carried.
Ruth Hakel reviewed the November financial statements. After the
statements were accepted, a motion was made by Commissioner Daggett,
seconded by Commissioner Lyke directing staff to transfer adequate
funds from the electric Current Investment Account to the 1976
Bond Reserve Account to meet a required balance of $668,250,
also transferring all but $90,000 (+ or -) to the Future Expansion
& Development Account. Motion was carried.
It was decided to review natural gas investments at the next monthly
meeting.
Commissioner Daggett reported on the Union meeting. There appears
to be several areas of disagreement; however, Commissioner Daggett
felt confident a new contract could be negotiated after one or two
meetings.
Mgr. Alexander reported that Richard Oliver, representing West Kansas
Energy of Neodesha, Kansas, has offered to sell natural gas to the
Hutchinson Utilities Commission at a price of $3.25 per MCF. (This
amount to include wheeling.) After considerable discussion, President
Filk instructed Mgr. Alexander to continue working in this area.
Specifications for the 69 KV switchyard, having been reviewed by
staff, were presented to the Commission.
1
A motion was made by Commissioner Daggett, seconded by Commissioner
Lyke to approve the specifications and advertise for bids on
January 4 and January 11 in the Hutchinson Leader and Construction
Bulletin. Acceptance of a bid would be contingent upon a firm
agreement with Northern States Power Company. Motion was unanimously
carried.
Mgr. Alexander reported that an inspection of the Utility Center
roof had been made by Ivan Larson, Orville Kuiken and Carl Wardlow
of Associated Consultants earlier in the fall. The roof is in
need of repair or replacement. Several different ideas presented
by Associated Consultants were discussed. President Filk directed
management to put together more information. It was agreed that
Mgr. Alexander could include in the 1983 budget an expenditure
of $72,000 for roof repair. Funds to be removed from the Future
Expansion & Development account.
The following are November payables:
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NOVEMBER PAYABLES - ELECTRIC
A. G. John
Meter refund & interest
1.25
Lynette Yock
8.42
Michael Fisher
15.79
Betty Jensen
20.10
Janet G. Johnson Krueger
17.08
Jim Kruse
Refund - Overpayment
of final
12.84
bill
Charles Pulkrabek
Refund - Overpayment of final
49.00
bill
Quarters Worth
Refund - Overpayment of final
151.10
bill
State Treasurer
PERA withheld & expense
3,866.04
Citizens Bank & Trust
Federal tax withheld
4,728.24
Putnam Fund Dist.
Deferred comp withheld
50.00
ICMA Retirement Corp.
Deferred comp withheld
472.00
Continental Assurance
Life insurance
51.70
Continental Assurance
Life insurance
226.00
New York Life Insurance
Medical insurance
8,210.82
Pauline Bipes
Meter reading
315.00
Citizens Bank & Trust
Deposit to Contribution
20,900.00
account
Colonial Life & Accident
Accident insurance withheld
122.00
Gerry's Vision Shoppe
Safety glasses
89.00
Walter Hombach
Travel expenses - unit #7
295.31
Hutch Utilities - UB
Employee utility bills withheld
1,070.00
I.B.M. Corporation
Maint. service
447.00
Natural Gas Division
Due to Natural Gas Division
262,622.85
Accounts Receivable
Northwestern National Bank
Bond &interest payment
582,963.75
Richard Peterson
Legal retainer
400.00
Petty Cash
Meter refunds & interest
694.19
Region 6E Community Action
Refund - Overpayment of bill
32.37
Margie Robinson
Meter reading
315.00
Dept. of Natural Resources
License fees
130.00
W E S C 0
Inventory
2,253.76
I.B.M. Corporation
Lease
402.00
W E S C 0
Meter inventory
1,265.60
Price Electric
Inventory
1,489.60
Border States Electric
Inventory
642.26
Petty Cash
Postage
727.20
Peterson Service Co.
Tools
89.75
Petersen - Wisdorf
Inventory line maint.
114.33
Dieterich Standard Corp.
Water probe
764.67
Apollo Piping Supply
Water system maint.
408.92
Graybar Electric
Inventory
149.80
Texgas Corporation
Gas
17.42
Heetland Electric
Final Payment - Project 78665
22,881.00
W. D. Enterprises
Truck maint.
50.60
NOVEMBER -
ELECTRIC (cont.)
Walter Hombach
Travel expense - unit #7
100.38
Baker & McKenzie
Legal fees
2,352.45
Texgas Corporation
Gas
18.77
Hutch Utilities
Collection expense
202.94
Putnam Fund Dist.
Employee deferred comp
50.00
withheld
ICMA Retirement
Employee deferred comp
472.00
withheld
Commissioner of Revenue
State tax withheld
4,788.53
Citizens Bank & Trust
Federal tax withheld
4,991.09
State Treasurer
PERA withheld & expense
4,025.94
State Treasurer
FICA withheld & expense
6,598.46
AMI Sewer & Septic Tank
Misc. expense
42.00
Albinson
Office supplies
13.59
Allen Office Products
Office supplies
83.99
Anderson Chemical Co.
Chemical inventory
11097.50
Apollo Piping Supply
Plant supplies, engine maint.
91.95
#3 & #4
Associated Consultants
Engineering fees
11,135.28
Border States Electric
Distribution inventory
721.12
Burmeister Electric
Maint. station equip.
87.43
Carr Flowers
Misc. expense
5.50
Central MN Communications
Maint. radio
54.00
Commissioner of Revenue
Sales tax
17,438.11
Ditch Witch of Minnesota
Maint. power operated equip.
60.55
Duncan Company
Tools
46.09
Floor Care Supply
Bldg. maint. - misc.
49.76
Four Seasons Services
Cup inserts
33.40
General Electric Co.
Engine maint. #8
232.40
Graybar Electric
Mdse.
167.04
Great Plains Supply
Bldg. maint.
57.95
H & C Electric Supply
Mdse., distribution inventory
379.80
Hall's Safety Equip.
Mdse.
128.76
Haynes Corporation
Engine maint. #7
3,451.00
Howard Industries Inc.
Distribution inventory
31009.00
Hutchinson Telephone Co.
Telephone
15304.40
Hutch Util. Employee Fund
Employee fund withheld
92.50
Hutch Utilities
Labor 12729.69
232888.03
Engines 18,307.44
Elec & Gas usage 31850.90
IBEW Local 949
Union dues withheld
467.60
Jahnke's Red Owl
Coffee
189.17
Dr. M. J. Juffer
Lens - B. Wentworth
26.00
Mankato Business Prod.
Office supplies
41.04
Milhoff Steel Products
Engine maint. #7
325.00
Minnesota Electric Supply
Mdse.
16.50
Paper Service Company
Plant supplies
90.70
Premier Fastener Co.
Misc. expense
19.71
Price Electric
Mdse., plant supplies
48.14
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NOVEMBER - ELECTRIC (cont.)
QuadeIs
Quas t Transfer
Robins, Zelle, Larson
& Kaplan
Simons & Simons
Swanke Motors
Texgas Corporation
United Way
Wally's Tire Shop
Zee Medical Service
Cindy Boldwin
Rodney Benson
Daniel Carlson
Glenn Deterling
Kathy Forsberg Anderson
Harold Guptill
Margaret Homburg
Kipp Kleinschmidt
Karen McLain
Keith Nelson
Vicki Schroder
Rory Seifert
Steve Utke
Schmeling Oil Co.
Edwin Dolezal
Petty Cash
Petty Cash
Irving W. Glater
Albinson
American Linen Supply
American Welding Supplies
Apollo Piping Supply
Brandon Tire
Coast -To -Coast
Country Kitchen
Culligan Water Condition
Dey Appliance Parts
Ditch Witch
Dostal & Oleson Oil
Dover Corporation
Electronic Center
Erickson Oil Products
Fabricare Cleaners
Family Rexall Drug
Farm & Home Dist.
G T C Auto Parts
Gambles
Engine maint. #7
Freight
Legal fees
Legal fees
Truck maint.
Gas - Conversion
United Way withheld
Truck maint.
First Aid Supplies
Meter refund & interest
Lube oil inventory
Refund on insurance withheld
Gas, postage, misc.
Meter refunds & interest
Legal fees
Office supplies
Laundry
Plant supplies
Maint. water system
Truck maint.
Plant supplies, bldg. maint.
misc.
Coffee filters
Plant supplies
Mdse.
Power operated equip. maint.
Plant supplies, engine
maint. #8
Engine maint. #7
Plant supplies
Gas
Laundry
Office supplies
Plant supplies, misc. tools
Plant supplies
Plant supplies
) 3'� it,
19.63
41.70
4,538.28
107.00
63.00
1,049.75
38.00
7.50
97.20
21.30
13.33
21.30
42.40
21.30
21.30
21.30
21.20
42.40
21.30
21.30
42.40
21.30
421.94
266.40
208.85
104.26
996.33
68.52
53.34
24.00
1,784.69
2.00
104.50
14.00
28.35
7.20
3.63
137.75
328.64
1.25
116.56
184.00
33.90
73.02
34.38
15.40
NOVEMBER - ELECTRIC (cont.)
General Trading
Home Bakery
Hutchinson Co -op
Hutch Plumbing
Hutch Wholesale
J. C. Penney Company
Junker Sanitation
L & P Supply
Leef Bros.
Milhoff Steel Products
G. F. Nemitz
Northern States Supply
Plaza OK Hardware
Precision Castweld
Price Electric
Robins, Zelle, Larson &
Kaplan
Simonson Lumber
United Power Association
Welders Supply
W E S C 0
Tools, plant supplies, bldg.
maint., truck maint.
Cookies
Plant supplies
Plant supplies
Plant supplies, mdse., truck
maint.
Uniforms
Refuse service
Power operated equip. maint.
Laundry
Engine maint. #7
Bldg. maint.
Tools
Plant supplies, bldg. maint.,
misc.
Engine maint. #3
Misc. distribution
Legal fees
Plant supplies, bldg. maint.
Purchased power
Plant supplies
Mdse.
NOVEMBER PAYABLES - GAS
State Treasurer
Citizens Bank & Trust
Putnam Fund Dist.
Colonial Life & Accident
First State Federal
Hutch Utilities - UB
Texgas Corporation
Texgas Corporation
State Treasurer
Commissioner of Revenue
State Treasurer
Citizens Bank & Trust
Putnam Fund Dist.
American Meter Division
Apollo Piping Supply
Duncan Company
HU Employee Fund
Hutch Utilities - UB
I B E W Local 949
Dr. M. J. Juffer
Minvalco
PERA withheld & expense
Federal tax withheld
Deferred comp withheld
Accident insurance withheld
Deposit to Contract for Deed
account
Employee utility bills withheld
Gas
Gas
PERA withheld & expense
State Tax withheld
FICA withheld & expense
Federal tax withheld
Employee Deferred comp withheld
Meters
Inventory
Misc.
Employee fund withheld
Labor, electric usage Peak
Shaving, gas
Union dues withheld
Safety glasses - 0. Kuiken
Inventory
436.11
206.50
12.50
2.00
111.15
43.73
80.00
66.78
154.38
1,278.95
16.90
12.35
30.45
2,360.00
13.30
3,800.93
37.62
401,768.21
101.15
52.79
876.99
1,129.12
150.00
24.50
500.00
422.00
38.21
54.68
879.28
1,049.88
1,350.50
1,099.45
150.00
65.72
32.51
18.21
20.00
2,924.97
96.00
142.00
53.91
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NOVEMBER - GAS (cont.)
National Assn. Consumer
Gas System
Premier Fastener
Texgas Corporation
United Way
Wally's Tire Shop
Witte Sod
American Meter Division
American Welding Supplies
Brandon Tire
Circle -Hutch Utility
Coast -To -Coast
Erickson Oil Products
G T C Auto Parts
General Trading Co.
Hutchinson Co -op
Hutch Wholesale
J. C. Penney Company
L & P Supply
G. F. Nemitz
Northern States Supply
Plaza OK Hardware
Welders Supply Company
Hutch Utilities
Membership dues
Misc.
Gas conversion
United Way withheld
Truck maint.
Misc.
Meter inventory
Misc.
Truck maint.
Purchased gas
Misc.
Gas
Power Operated equip. maint.
Power Operated equip. maint.
Misc.
Truck maint.
Uniforms
Power operated equip. maint.
Maint. Border Station
Misc. tools
Misc. supplies
Misc.
Due to Municipal Electric
Plant - November expenses
/ y / `'
450.00
19.70
2,076.41
8.00
24.00
1.50
2,352.00
42.83
307.60
459,238.30
10.88
58.01
47.62
122.35
12.50
81.70
43.72
13.82
32.40
18.90
7.37
43.08
11,080.23
There being no further business, a motion was made by Commissioner
Daggett, seconded by Commissioner Lyke to adjourn at 3:25 p.m.
ATTEST -
H. W. Filk, 4 'sident
xt,
Thomas B. Lyke, Secretary