10-30-2013 HUCMMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, October 30, 2013
Call to order — 3:02 p.m.
President Bordson called the meeting to order. Members present: President Dwight
Bordson, Vice President Anthony Hanson; Commissioner Craig Lenz; Commissioner
Mark Girard; General Manager Michael Kumm; Attorney Marc Sebora.
Members absent: Secretary Monty Morrow.
Guest: Jeremy Carter (City)
Approve Minutes of September 25, 2013 Regular Meeting
The minutes of the September 25, 2013 regular meeting were reviewed. After
discussion, a motion was made by Vice President Hanson, seconded by
Commissioner Girard to approve the September 25, 2013 regular meeting minutes.
Motion was unanimously carried.
At this time, Secretary Morrow arrived: 3:05 pm.
2. Ratify Payment of Bills for September 2013
The September 2013 payables were discussed. A motion was made by
Commissioner Lenz, seconded by Vice President Hanson to ratify the payment of
bills in the amount of $2,587,499.63 (detailed listing in payables book). Motion was
unanimously carried.
3. Approve Financial Statements /Budget Year to Date
GM Kumm presented the September 2013 financial statements /budget year -to-
date. After discussion, a motion was made by Commissioner Lenz, seconded by
Vice President Hanson to approve the financial statements /budget year -to -date.
Motion was unanimously carried.
4. Approve Changes to Policies and Requirements Booklet
(Tabled at the September 25, 2013 Regular Commission Meeting)
GM Kumm presented the changes to the policies and requirements booklet,
sections:
• Definition of Your Bill
• Errors in Billing
• Payment of Your Bill
GM Kumm recommended to strike the verbiage "2.75% or $XX.XX of your
payment is transferred to the City of Hutchinson for use in its General Fund." from
section, Definition of Your Bill, as the Board does not have an exact calculation
defined.
No changes recommended for section Errors in Billing.
GM Kumm recommended tabling section Payment of Your Bill until the next
regular commission meeting to research possible changes due to the new HUC
online bill pay.
After discussion, a motion was made by Vice President Hanson, seconded by
Commissioner Lenz to approve the changes to the policies and requirements
booklet. Motion was unanimously carried. (Changes attached.)
5. Approve Changes to Exempt and Non - Exempt Handbooks
(Tabled at the September 25, 2013 Regular Commission Meeting)
GM Kumm presented changes to the exempt and non - exempt handbooks,
sections:
• Hours & Conditions of Employment (Exempt Only)
• Flextime Program (Exempt Only)
• Rest Periods
• Meal Periods
No changes recommended for sections: Hours & Conditions of Employment, Rest
Periods and Meal Periods.
Staff recommended changes to Flextime Program (exempt only) replacing the
verbiage with " HUC's flextime program allows exempt employees to vary their
scheduled work hours to conform with the operations of the Utilities. Flextime is
approved by the employee's Manager or Director."
After discussion, a motion was made by Commissioner Lenz, seconded by
Commissioner Girard to approve the changes to the exempt and non - exempt
handbooks. Motion was unanimously carried. (Changes attached.)
6. Approve Assignment of General Manager Review Subcommittee
The Board appointed President Bordson and Vice President Hanson to the
General Manager Review Subcommittee to start working on the General
Manager's contract and yearly performance review with Attorney Sebora's
assistance. A motion was made by Commissioner Lenz, seconded by Secretary
Morrow to appoint President Bordson and Vice President Hanson to the General
Management Review Subcommittee. Motion was unanimously carried.
7. Power Supply Update (PowerPoint presentation)
GM Kumm presented the power supply update. The HUC open house on
October 8, 2013 had an attendance of about 410 people. This presentation covers
some of the questions customers asked during the open house. Due to the power
supply system being implemented, roughly a 10 to 15% increase on RUC's
customer's bills has been avoided. (Presentation attached.)
8. 3M Generation Subcommittee Update
Vice President Hanson and Secretary Morrow presented electric and natural gas
rate comparison analysis by Dave Berg representing current pricing structure for
HUC's two largest industrial customers. The Board recommended the 3M
2
Subcommittee move forward with the general approach on pages two and three of
the analysis when meeting with the two industrial customers. President Bordson
abstained from the discussion due to the conflict of interest.
9. Discuss Potential Candidates to Replace Commissioner Lenz
The Board discussed the list of potential candidates with the desired skill sets to
replace Craig Lenz as of January 1, 2014. President Bordson requested the Board
submit the top one or two names to Kim Koski which will be prioritized and
submitted as recommendations to the Mayor and City to present at the mid -
November council meeting.
10. Communication from the City Administrator
City Administrator Carter reported on the following:
• Finishing up city neighborhood street projects.
• Depot site project still in progress and will continue into Spring 2014.
• Finalizing 2014 project list.
• Commercial development on the south end of town is picking up.
• Workshops held last Tuesday for CreekSide and City liquor store.
• Discussions are being held on 2015 rate structures.
• Still a gap in the general fund; offering an early retirement incentive program
to fill gap and looking at re- prioritizing core services and re- aligning staffing.
Division Reports
Finance — Jared Martig
• Randy Blake is working on boiler insurance quotes.
• Roof replacement scheduled to be complete by November 7.
• In middle of sales tax audit; recommendation is to review previous auditor's
recommendations on the territory agreement.
Natural Gas — John Webster
• Visited Fairfax station with Mark Girard to watch the installation of the deep
wells.
• City of Brownton project is going well; read all but four meters through the AMI
system this month.
Electric — Steve Lancaster
• Continuing to complete end -of -year work orders.
• Working on replacement of control system for unit 1.
• Currently 850 hours on unit 5; taking down for one day next month for 1,000
hour maintenance.
11. Legal Update
Nothing to report.
3
Unfinished Business
• Discuss Separate Business Unit for Wholesale Business
GM Kumm explained HUC will generate separate financials each quarter for
the separate business unit for wholesale business.
• Discuss Pre -Pay for Natural Gas
Nothing to report
• Discuss Bylaws of Hutchinson Utilities Commission
The Board requested GM Kumm to report back with verbiage changes to the
bylaws for the last paragraph of section (D). GM Kumm presented his
suggested changes. Discussion was held and Attorney Sebora recommended
replacing section (D) of the bylaws to reflect transfers to the City be done
pursuant to the City Charter. Attorney Sebora will present these changes for
approval at the November regular commission meeting.
New Business
• The first draft of the proposed 2014 budget will be sent out in November.
• December regular commission meeting date will be rescheduled as it's
currently scheduled for December 25.
There being no further business, a motion was made by Secretary Morrow, seconded
by Commissioner Lenz to adjourn the meeting at 5:41 p.m. Motion was unanimously
carried.
ATTEST
gh+t'Bordson, President
9
Monty Morrow, Secretary
Definition of Your Bill
Your bill provides:
• Account number /Customer number
• Due date
• Payment due
• Pre - authorized payment to be drawn from your bank on due date
• Budget amount due if on the budget plan
• Name /mailing address
• Service address
• Electric and fuel cost adjustments, if any
• Reading dates
• Days used
• Previous and current readings
• Usage
• Previous balance
• Payments made and date paid
• Electric and /or gas meter charges
• Amount charged to each meter
• Sales tax
• Any miscellaneous /trip charges
• Account balance
• Perforated top stub to remit with payment for timely and proper posting
"') 7r-O/ — Qvv vv _4 . _ ,.- -4- ;— +. --- F...-.—A 4-- 44— rte;+., --F u..+ .�;r ..... s,.. ..,.,, ...
• If applicable, a message on the bottom of the statement indicating past due amount
Meters are read approximately every 30 days. Estimated readings may also be taken if
access to the meter is not possible or the meter has stopped working.
EXEMPT
SECTION 3 — HOURS AND CONDITIONS OF EMPLOYMENT
Staff Personnel will establish work schedules, subject to the General Manager's approval. The
regular work week is five 8 -hour working days with two consecutive days off. The normal work
week is Monday through Friday, except as otherwise established by Staff Personnel based on the
customers' and Department's needs.
The Utilities office hours are as follows:
Office hours are 7:30 a.m. to 4:00 p.m. Monday through Friday.
FLEXTIME PROGRAM
HUC's flextime program allows exempt employees to vary their scheduled work hours to
conform with the operations of the Utilities. Flextime is approved by the employee's Manager or
Director.
UP ZMA
HUC's flextime program allows exempt employees to vary their scheduled work hours to
conform with the operations of the Utilities. Flextime is approved by the employee's Manager or
Director.
11/20/2013
Power Cost Adjustment
2004 - Present
2004
2005 2006 i
2007
2008 2009 2010 2011 2012 2013
lanuary
50.025
$0.02500
50
$0 $0. $0 00000 $0 00254 $0 00185 $0 00000
ebrua
50.0250
$0.022 501.0007R
$0.0041
$0. $0.00000 $000076. $000378 $000000
arch
$0.0200
$0.02 $0.
$0.00387
_$1
$0 00591 $0.062 $0.00000 517 00075. $0.00000' _.
rll
$0.0175
$0.01950 $0.0
50.001
$0.001341 $0.00000 $0.00000 $0.00295 $0.00004
IMay
50.02000
$001850
$000000
$000487' SO,00WO $000000 500033411, $000000
une
$0.01500
_$000000
$0 01750 $0 00000
$00037
$0 00029 $0 00000 $000000 so.. OOOOp� $000,000
my
$0.01650
$0.0350 50 0
$0
$0 02191 $0 00000 $0 00000 $0.00689! 00354
-$0.0000
_
Au Rust
$0.0085
$0045 $001062
$D
$000330 ._$000 $0. $0.00028
e tember
$0.0085
$0.045 $0.00612
$0.0
$0.00063 $0.0000 50. $0. 50.00000
October
,50.01
$0.04500 $0.
$0.9
0-S$0. $ $0. $0.0000( $0 00000November
$0.01
$0.03 $0.
$0
$00.00000 50.00000 $0.00000 $0.00186__
ecember
$0.022
$0.0375 $0.
$0.
$00. $0.WWO 50.003391 $0.008301 -- -_ - -J
Power /Fuel Cost Adjustment
Year 2013
DATE GAS ELECTRIC
January
$0.00000
$0.00000
February
$0.00000
$0.00000
March
$0.00000
$0.00000
April
($0.00051)
$0.00000
May
($0.00020)
$0.00000
June
$0.00000
$0.00000
July
($0.00086)
$0.00000
August
$0.00000
$0.00000
September
$0.00000
$0.00000
October
November
December
Operating Expenses— numbers from
2011 Audit
2011 -- Operating Expenses
$883,761.00
• Power Supply Expenses
• Other Expenses
PILOT
-Approximately 70% of all electric utility expenditures are power supply expenses.
-Other expenses will increase due primarily large increases in Transmission Expense.
-Focus on reducing power supply expenses.
11/20/2013
2
FOURTEENTH
EDITION
STANDARD HANDBOOK FOR
ELECTRICAL
ENGINEERS
DONALD G. FINK
H. WAYNE BEATY
Becton 11. At—me gou,owo and Convwhn of Power
Section 12. E mnmks of Bulk Electric Power Solepty 11.1
Becton 13. ProjM Economics 111
So.fion 14 T—n".I.n Systems 14-1
Section Is. 01—t-0—ant Powr Tr—lei— 111
Section 18. P-1 SVetsnt Op!r!ti— Ml
Section 17. subetati— 17.1
Bec-Son 19. Power Disd.1don
Section 1& Wking Design for Conn-1.1 and kedeftiel BuNdlegit 11.1
Section 20. Motors end Drivee mi
Section 21. l J—W end C—olat Appliceftions of Poctnic Power V.,
Ssabn 22. Ele -lcm - -- --------------- - - - -- 224
Section 23. Pc~ Qu&RtV W
Section24. ENCtroclrmietry and ENetromepgwpy 2+1
Section M. Clo"utor Applications In the Electric Pavver lrnlustry_ at
Secdon 26. fliumninanion 261
11/20/2013
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eB¢irrp arwnon Knea+tl oNap..TO•ca' wfap.a mrY awmeaa
I rot mNq br taotl K •sun cop �ti l
Facuge to wYab IYJ Yd gamwkw �.:..,.
cold.195•.rs and 1960s.' ib" 1970, H rail again to ahw9 60%. The. changer art a moh
pmgrosiw from a high winter peek. IMwRh a ,.W when'c Ymmm nod whom prat
noon! the Ynr level. w • high summer peak. TM dual p Ioi in the mi ldl< years caned a
v<rage load without a arsrosp'ling iwlw in the mnrml peak, thus Iwling '"'girt taH
By tlse early 19ROs, dk o:nioo it load f.m was 6294, wd it nam d to M94 in th<.mfy
The !eavan fm'is ircrease Ia Ihu Wliun w sapl —M varmm methods to impost &
foci'. Higher bed farm rata m rNuse average power because tlY invotmanr u
equipment ae spread ovn overt ercrgy c¢mm�psh °, load fact' on iodi.idwl ayatemr Rr.
in the cop of 55 m 70%. The ind..y row uw capnciry nmrga Y an iadkanrr of a
down supply. TTe stammer capxiry magi- was 20.6% to 1993.
71,8 GENERATNG-CAPAa" NX
TM toms ¢annmimi mean of supplying IM cyciw bd w en awM power tyskm
three bait types of gn.mting cupKiry awilaak:
1. Brio laved ca by
2. I i —INaa- bed -range op¢ity
1 Peb'Y m ley
fa.- -.,O Btig ELEC .i,o —It-1 12 -22
Bare load rapa<iry mvs xa: ih• full ruing aranbruoidy, day wd .19h, all Yea lung. It is
aeunocai !o bang- elrx uniu with a muimum of fuel- ¢000vving f rte, highew practical
rkmn tmnpmatursa andpreuur< xof rtg<omhsre iro!!ar- f¢dwaerhulcrs. rebm[aod
dmhblorehcat boiler- uvbfrr Krwgemenu, and large cord&— wi!h mr mlempr of soling
ere Rex nano mcreax'. cart of d. plant but u<ioailiable beta o<doe fuel cos smogs i•
large due to tM bop anon nr power pWa¢d by having the unit roo co —Moly
The davign of hAc plan n opimimd to obtan h, b.1— bmweeo high fiml crhu and Inv fuel
ant Ihal will giv<'e lowest "ioutl pow - e¢t under the momplion — the wdl will be ti,"Wy
hW W f¢ many Years. The haw d¢Ign will vary depo i,g m the unit roue money cons, rod fuel
ry; and cot.
Nrukm oohs ionic -Mly have very high roses m costs and very low f!ri arse and thw am
baK-0hud oat,. Wbmi o m'an'ned warn soppy u avaiWblc, hydro wit, arc base- landed cap¢ -
i— k— fief — a —
Pealing cr ,iry is run only daring daily pale load periods d—, dk Y A peak times of
hr yea and don, etrcagercio. Sixc IM teal aenual Mop' is low, high effisiery h m u
nnzvary li or lone -lid ins. very low host con ''doom ConbiMiw mrbi— ub
p :m ;J uougc bydm units ere dte typml peaktog uni.�
fnranrediaac food range coM oy dts buween tM li oW d <apuiry cord ;aWng capwrty in
bu' fru aunt and fuel cost. h'—Ily a dasig¢d to M "c}eled' that H, tamed off Kgiluly a
Z' or on week —"I ,,&d up aW down rapidly donnd the thne n it m the lire in order'
Coke tM hod .swinge w dr system. S— addihicnuI con it -io od to allies for r< ;sled noon and
mop P'.drinryipm<m damage Ivi fastfo lagertifia,-Rst,Brr. However,owingta'e ion
awed prachrcH some reducd . In atl Milo is jimified. (Non s — node lA unite orb hydro
ludo wnh ofthoth l wa<r u. art th.1 mar rued far ae.mrdme wJ ;eking Krvke.
Tlr mia Mth , ltypoofcI ofOy Nut willpmvldedrmast by&oc•Idowntarsparticilu
puwm ,.d overt Fong p of of rime son d ,lbig iced an1Y by Jerold long -rod t-r
pia -tong audio. Aber types of Rrnemnw, including wired and a+lu, w[puu ore usW wlwkver
araikbk
T}pkd wvwal
agwcaY 4cm.
Derigeauon fro ama Fud .<n A
Bar.lotl.aperiry High ides _..._- ........ 63 -73
I- o-oaw3nad -enngv eapaxy Inrn¢Jiak lokmulw< 30-90
14akrng cYruY Low High 3 -IS
fNTERCONNECT/ONS AND POOLMID
In sir paste, ron<onrs W —.g• ware achieved by camrYtu< a b.!mnai Mars rw h m<mirrslop
a a ;veer poor kientlrrxhip in •power pool eroDkA larlger.remr, fxel¢ lindirrg of ioera<vrsU<a
vinHS nnwsc'c pow! vws rvn Y d all cmnpuni<s were merged into an rrbividuel mmpanY. Thr
bcnefns w ash .undo} w¢e pod w a moohiy Mrie. The Pennsylvania -New 1 <rsey- 7daryland
(PJT pool woe w eda k or such a power pool.
TM d (Wh)ion of ei c Uo y hm led m erolodon of th down pools rma Wepvrdcnh syskm
ayn I (wm width the UnnM Stmn. ocher tau um hove a of ois,& not rmiy ird<pe Wan
eyuem ofrrnors bauisopnwer ficutjchcomhinnnms Mrc teen coiled ended!ndentcwnid,
to praron dCASl byfto ft odd Wldrta.Tlr gnmanonh— boh =ilbomb.hmit bids
hp the ;veer ''lens oM !0 She itdepe Wml Lyskm operafm. The.. Di' m'cn mbmitkd to a
11/20/2013
4
11/20/2013
12.24 SECrw'x UvE
ulmHon s cateis ins of I", commitmay. wimal serum Power Bow, and expcn'w_
rule,. The bide nn auathd bauvl on finaMid vml teeAdcil meets for J fumrc *.. open-
m the nea114 h.., The End —Im m the Industry awrtort aAcr Jemgululon is nP1 k.-
u f W, time. f.red. it u exfvxcd to be aevaal Yeah bdf a mabk W-in 110-1 4
.,hi—d. g e power are owMts
The two main la;:2711112111,1111. u m' gel+emlin kctnc hip lustlt P.c!
cmt Th ate bmh coMeptt Mimvccwuec'bin and poling. All tiliucl am
cornet, 1 d with ahrss to some Deg When them am strong inerconnation, capable h uRtgr
poring Inge amounts of Wwcr. it n posslbk fin utditie m bu ild :uga uviu wile tainn
rt
maiem rcli&ay benux UIe 'e geteruing capciry of ill Jle immuvuekd cW k1j n ;n
LAIC Wren needed by my mbcr. Idrga un+u ue bJUrendy k,x experuive pv blowan
b.— many of - MWivlly f x. costa art spread m a toga number of kll wa Pf'Wlily.
Thi, m/ca is tam. a-:' -' M +rok - h w fm nfficirm
Into cenMCtiau dw allow swings in fuel emu by dlnwi� ..F.— wu sp
geMnlian to ,dl eMrgy w tlhen et mes loner man 1, — Thu Ih- othev might meur if Duy
gene acd using tficir own unw Th., it tali. nnm,my imrrahmg`n the dltla of Theis ak lemb
Inle oration, also a— compenka w each v pnwa WDC ivac ge. Pe
d'M , such m bttween winter and summer. This 1, c,IW dirna( dun Thls elhrws ra_h
party m in,Wl Ivrss geMaaing wpuiry while mun-
Wning aJegote. sYnem rolladlity With 1.. 1
m fn d made
e ere I,mssdairs ue cxpe rohoccI, a all t.n
to of the day ud dl sowna of do yeas
Sao Tic pmc.ing bcMfua can M anainW ody by
moos of mng a »ion irI, I_-
:0 cuom -Rua
g + s, dw m aoanmr a de fa .l 1 ono,
y +. flowerer, it n clued to tM W." ,d M kvel. In gen: il.
i w hie, ma on V0114m "o- efux!a Jrt 'i!rt
PaP W ,oM a0m higher tmmm�kdon voi �agn Hn er, IAe
iaoo xWO o ny cvmpk, m W"I 5 but affil leani:al
waameri,
mJ wet
i'A nanunissim ,Ynem Design. p'gma
e o
flCt�I2WIi uxve a +anoi.fiin II -9 shows a Veh simpl +fled mluliuuAip for ce
&e lis rdia{e.1E2A1. narmtus,ran di5lacee.
BIBLIOGRAPHY
BmvJfun. W. W. 1"g "A Cnmperinm4 Fwme Nairn and Cal- Find FJeMC(aeration kthe M nwensn
tiaiM Sturi Pupa pmsoud m do Amedem Nielam S—Y Wilau blanaq. t xi
I:IA. 19&1. Ylenia:.El—m Pl— Cmnracuw+ Can — Most 1 M0 o E+pr W'a,hinf- Q
In /vrniuim Admiaiswii+m
Eknric Pwrr Arvuml. 1941 WVMagtaiE IY IMonviim Admviur:eiov.
Gant E L. 19]0. PrM 01P "/Gniinrenng F.'rvnnmy. N+w ymt RanJd Prtu
Isyma. P H. 1968. PlOWhhry of Fn'mmiJr Cb Ama, bwa. lows Slue Ulamnny Pans.
Nahmwi POwv +1v 1 Pmt f. 19d. Y"ingmn' FeCeN Pwv Camms
AWr Mw Powrr 5—Y. Port 119N W mhmgmn'. P.aal Pvwa Cammudan.
NERC. 1952. E9rlplmm Awilvbiliry Reyan. 1972 -l.k Gmrra Aw4 lryfaun Synri.. Pime;m Nl.
NoM Amakmi Elaok BclisdlilY CoMI.
NERC. lure t99? F.k.vs1ry Siipplr uM p.md. 1992 -2COl. Pdnalon, N 1.' NnM Ju:xn.an Etsuic W
IidrilbY Cwmei].
5muni:d YrorbmR t{rb Elnlrrc unliry 1Ma+nY. 1990, WaDnvpm: Fdiwn F'nak Inr:iwir-
Power Supply Planning
The following items are included in this study, some have already been implemented, while others will
likely be implemented in the future.
1. Rate stabilization fund is used —this was implemented in 2006.
2. Statistical Model being used by system control to dispatch generating units — implemented in
2012. This assists HUC System Controllers in identifying trends in the market so when the market
prices are greater than cost to generate, then System Controllers dispatch HUC Peaking Units.
3. Base load supply was reduced from 30 MW to 25 MW —this was implemented on January 1,
2013. This supply comes from Missouri River Energy Services. This is Base Capacity.
4. Unit 8 has a scheduled run in January, June, July and August —this has been implemented, and
functions as a hedge against the market. This is Intermediate Capacity.
5. Installation of new Wartsila 9.5 MW generating unit —Unit went on -line in February 2013. Unit
will be used as a hedge against the real -time market. This is Peaking Capacity.
6. Change air permit for units 3 and 4. Each of these units are 4 MW dual fuel units. Late Spring
2013, we will identify what needs to be done (if anything), to gain added operating hours for both
units. Anticipate this will be complete in 2014. Units will be used as a hedge against the real -time
market. This is Peaking Capacity.
7. Purchase and install a 2nd Wartsila 9.5 MW generating unit —we would like to see this unit go on-
line in 2015/2016 time frame. This unit will be used as a hedge against the real -time market. This
is Peaking Capacity.
System Control Statistical Model
Screen Shot for Unit 4
0-
When boxes are red, then we have an uptrend, or
start, or online signal.
Weighted Average of Market Price
sta rt
T
Cost to Generate
S n E E s: i n S S e e I e a 8 e e e a n 8 8 f e E s a 8 a e 8e S. R 8 n E p
E 8 B 9 8 8 B e B 8 S B S a a 8 a
2011 Load Duration Curve,
Vertical Axis in MW,
Horizontal Axis in hours
60 _..... - -___— .__._
_.... .. ... — .. —Inad Ouration Curve
—30 MW Base Load
X25 MW Base Load
40 _. _...... —_ _._.._....._.. Selling poelien- efbase load
into market, this will
reduce significantly.
30 MW Base Load �' -1
25 MW aase Load \ \�I
2u_. -. _- __..- __.�_. _____. ._
The 30 MW will reduce to 25 MW eHectWe 1/1/2013 to mitigate risk.
The 25 MW base load is through a Mint Action Agency membership agreement with
Missouri River Energy Services (MRES).
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11/20/2013
0
Monthly Supply from MRES and
Market /Generation for 2011
% MRES Supply
Monthly 2011 Agreement %from Market/Generation
January 72% 28%
February 72% 28%
March 74% 26%
April 77% 23%
May 74% 26%
June 67% 33%
July 58% 42%
August 62% 38%
September 74% 26%
October 80% 20%
November 83% 17%
December 81% 19%
2011 Annual Supply % Supplied
• MRES Supply Agreement 72%
• from Market /Generation 28%
Note: This reflects the 2S MW base load power supply agreement with MRES.
Please note that anywhere from 60% to 80% of HUC average monthly energy
purchases are provided via MRES base load supply agreement.
Annual % Supply From MRES and
Market /Generation
%Annual Supply
% MRES
% from Market
Total HUC
Supply
and /or
Load
Year
Agreement
Generation
MWHR's
69%
31%
319069
2006
2007
67%
33%
328647
2008
69%
31%
318496
2009
76%
24%
288620
2010
72%
28%
305777
2011
72%
28%
302775
2012
75%
25%
291957
Note: The MRES base load power supply agreement accounts for
approximately 70% of HUC annual energy needs.
11/20/2013
7
Example of July 20, 2011 -25 MW Base Load,
MWHRS Unit 3, 4, 8 New Unit 5
70
Not enough generation
at Plant 1 to (over load
July 20, 2011
Blue Line is HUC Electric Load
So
Units 3, 4, 5 start Unit 8 scheduled stop
Market > Gen Cost
40 Purchase off market
Market <Gen Cost —Load
30 ____...__ " - -- Unit 8 scheduled start —Base Lead+ Unit 8. Other Gen,
Units 3, 4, 5 stop
Market < Gen Cost
20 MRES Base Load Supply
- -Red Line is Electric Supply
10 _. _ .............
ti
1 2 3 4 5 6 7 8 9 30 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Time -24 Hours /day
Example of July 20, 2011 -25 MW Base Load,
Unit 3, 4, 8, New Units 5 &6
MWHR's
70 Plant 1 now has enough
Generation to take care of HUC
load. HUC will realize a small op. income
60 from electric supply sold into market. The
Op. Income received is subtracted from
Wholesale rates charged to HUC retail
50
customers.
-
40
Blue Line is HUC
Electric Load
Units 3, 4, 5, 6 start
Market price > Gen
Unit 8 scheduled start
iB f fi
20 . MIRES Base Load Supply Red Line is Electric Supply
10 L
July 20, 2011
—Load
o+
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Time- 241-Iours /Day
11/20/2013
i
Per Unit and Extended Savings
Per Unit($ /MWHR) Savings by project
2006
2007
2008
2009
2010
2011
2012
25 MW Base Load and Market
$3.38
$0.55
$5.00
$8.72
$7.19
$7.64
$6.35
+Unit 8 -- Intermediate
$0.97
$0.68
$0.95
($0.26)
$0.26
$0.21
$0.07
Statistical Model + Unit 5 -- Peaking
$1.93
$2.68
$1.56
$0.63
$0.74
$0.96
$1.18
Statistical Model + Units 3, 4 -- Peaking
$1.62
$2.26
$1.31
$0.53
$0.62
$0.81
$0.99
Statistical Model +Unit 6 -- Peaking
$1.93
$2.68
$1.56
$0.63
$0.74
$0.96
$1.18
Electric Sales (MWHR's)
319,069
328,647
318,496
288,620
305,777
302,775
291,957
Extended Savings
2006
2007
2008
2009
2010
2011
2012
25 MW Base Load and Market
$1,078,771
$180,675
$1,592,879
$2,516,080
$2,198,758
$2,312,946
$1,852,610
r Unit 8 -- Intermediate
$309,172
$224,629
$304,073
($74,937)
$80,785
$62,353
$20,350
Statistical Model + Unit 5 -- Peaking
$615,954
$882,118
$496,845
$180,551
$225,721
$289,806
$344,275
Statistical Model +Units 3, 4-- Peaking
$518,163
$742,836
$418,396
$152,043
$190,081
$244,047
$289,916
Statistical Model + Unit 6 -- Peaking
$615,319
$882,118
$496,845
$180,551
$225,721
$289,806
$344,275
Total Savings $3,137,378 $2,912,375 $3,309,037 $2,954,288 $2,921,065 $3,198,957 $2,851,426
Note: Red = Market Hedge and Bundling
Summary of Savings
2006 2007 2008 2009 2010 2011 2012
25 MW Base Load and Market Purchases $1,078,771 $180,675 $1,592,879 $2,516,080 $2,198,758 $2,312,946 $1,852,610
Savings due to gen. hedge & bundling $2,058,608 $2,731,700 $1,716,158 $438,208 $722,307 $886,011 $998,815
$3,137,378 $2,912,375 $3,309,037 $2,954,288 $2,921,065 $3,198,957 $2,851,426
$3,500,000
$3,000,000
$2,508000
$2,000,000
$1,500,000
$1,000,000
$500,000
$a
2006
2007 2008
17
Annual LMP Prices
2007 $5126
2008 54808
2009 524.61
2010 $2902
2011 $2776
■ Savings due to gen. hedge & bundling
■25 MW Base Load and Market Purchases
Summary- -note effectiveness of plant 1
generation hedge and bundling
_. dunnghigher electric market years
(years 2006, 2007, and 2008).
2009 2010 2011 2012
11/20/2013
IJ'
Hutchinson Power Supply
Cost YTD- -2013*
e�
January
$
47.81
23788
$ 1,137,304.28
February
$
50.39
21639
$ 1,090,389.21
March
$
42.63
23225
$ 990,193.49
April
$
40.10
22287
$ 893,708.70
May
$
41.38
23164
$ 958,526.32
June
$
51.61
25395
$ 1,310,635.95
July
$
49.74
28644
$ 1,424,867.33
August
$
49.14
28474
$ 1,399,138.30
September
$
40.78
24839
$ 1,012,820.84
October
f.
S
o f
S
November
u t
u 5
Y f
M
December
Y S ss.m S Kv f X 3 f KK
Y f Xn S n% f xff S K t
S»
f af.f.
S
S
tlY 4
3 f Sfn S
o f n 5
X% S
N S
3f S
Kn S
221455
$ 10,217,584.42
Per Unit Power Supply in $ /MWHR = $ 46.14
I *Prices do not include MISO transmission or other associated
MISO fees. J
11/20/2013
10
The actual includes unit 1
e�
;.
The model does not include unit 1.
el.
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ma _
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X S XY S 3 Si f s» S.
5 3 s m S ss s S ss.ff S»
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st 3 S.n 5 ++l S am S zY S S
fqM
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SSn
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AY
f an 3 am 3
f fn S !fl f
+ 5 fv 5 +X 3 +Sl 5 zfs f x
rNU
f S 11 1 117 5
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S.rsm.ise
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11/20/2013
10
$ /MWHR savings by project and
Benchmarking Study
2006 2007 2008 2009 2010 2011 2012
Actual Average $54.06
$53.77
$57.47
$54.10
$52.78
$53.51
$52.35
25 MW Base Load and Market Purch. $50.68
$53.22
$52.47
$45.38
$45.59
$45.87
$46.01
+ Unit 8 $49.71
$52.54
$51.52
$45.64
$45.33
$45.66
$45.94
Statistical Model + Unit s $47.78
$49.85
$49.96
$45.01
$44.59
$44.71
$44.76
Statistical Model + Units 3, 4 $46.16 $47.59 $48.64 $44.49 $43.97 $43.90 $43.77
Statistical Model +Unit 6 $44.23 � $47.08 � $43.23 $42.94 ' $42.59
APPA Benchmark -10% to 50 %
Generation(median) $46.00 $58.00 $47.00
APPA Benchmark - -North
Central /Plains(median) $49.00 $59.00 $60.00
APPA Benchamrk -50% to 100%
Genemtion(median) $34.00 $46.00 $43.00
Comparison of Projected 2013 Area Wholesale
Power Rates to MRES 2013 and Rates
v 7.8
9A 8.66.78.76.96.97.0 ].1 7.27.2
�8i0S7 99 5.9 6.8 6.9 6.9 6.0 6.0 .�
4.9 5.1
V1
Eli
iY i"
- A..ne•rnea rw«.e..co.t.M.iwmaww.m enea r...r..w rM..:a.wacow
- tres s.ro�m.mn r.... ou.r 4,..vmeu.w unim..
HUC Com3parab l$ - nludeTrn.smison
e1,69264
]an
788
$ 50.64
Feb
21639
$ 1,178,914.31 $ 54.48
Mar
23225
$ 1,071,695.49 $ 46.14
Apr
22287
S 1,026,131.03 $ 46.04
May
23189
5 1,038,176.03 $ 44.77
June
25395
$ 1,417,167.01 $ 55.80
July
28644
$ 1,574,431.73 $ 54.97
Aug
28474
$ 1,571,838.73 $ 55.20
Sept
24839
$ 1,160,448.73 $ 46.72
Oct.
22986
5 1,075,805,35 $ 46.80
Nov'
21509
$ 1,033,998.38 5 4807
Dec'
22322
$ 1.230.849.15 1 55.14
298297
$ 14,584,148.58 $ 50.59 Per MWHR
GI 5.05 Cents per KWHR
' = Estimate
for Oct, Nov,
and Dec.
11/20/2013
11