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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. L rl 1 1 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. 1 1 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. 1 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. 1 1 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: 1 _3 `7 - 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 1 C 1 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 1 1 1 1 L 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