11-26-2014 HUCMMINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, November 26, 2014
Call to order — 3:03 p.m.
President Anthony Hanson called the meeting to order. Members present: President
Anthony Hanson; Vice President Monty Morrow; Secretary Mark Girard; Commissioner
Donna Luhring; Commissioner Dwight Bordson; Attorney Marc Sebora; and General
Manager Jeremy Carter.
1. Approve Minutes of October 29, 2014 Regular Commission Meeting
The minutes of the October 29, 2014 regular meeting were reviewed. A motion
was made by Commissioner Bordson, seconded by Secretary Girard to approve
the October 29, 2014 regular meeting minutes. Motion was unanimously carried.
2. Ratify Payment of Bills for October 2014
The October 2014 payables were discussed. After discussion, a motion was made
by Commissioner Luhring, seconded by Vice President Morrow to ratify the
payment of bills in the amount of $2,247,184.41 (detailed listing in payables book).
Motion was unanimously carried.
3. Approve Financial Statements/Budget Year to Date
GM Carter presented the October 2014 financial statements/budget year-to-date.
After discussion, a motion was made by Secretary Girard, seconded by
Commissioner Bordson to approve the financial statements/budget year-to-date.
Motion was unanimously carried.
4. Review Policies
GM Carter presented the policies, section:
• After Hours Reconnection Policy
• Landlord Acknowledgement
No changes were recommended.
5. Approve Changes to Policies
GM Carter presented changes to the policies, sections:
• Payment of Your Bill
• Disconnection of Residential Services by HUC
• Disconnection of Commercial Services by HUC
Changes to section Payment of Your Bill were made for clean-up purposes,
changing "check" to "payment" to reflect other payment options. Changes to
sections Disconnection of Residential Services by HUC and Disconnection of
Commercial Services by HUC were made for clarification.
After discussion, a motion was made by Commissioner Bordson, seconded by
Commissioner Luhring to approve changes to sections Payment of Your Bill,
Disconnection of Residential Services by HUC and Disconnection of Commercial
Services by HUC. Motion was unanimously carried. (Changes attached.)
6. Review Exempt and Non -Exempt Employee Handbooks
GM Carter presented exempt and non-exempt handbooks, sections:
Introduction
• What is Hutchinson Utilities Commission
Purpose of this Handbook
After discussion, no changes were recommended.
7. Approve Changes to Exempt and Non -Exempt Employee Handbooks
GM Carter presented changes to the exempt and non-exempt employee
handbooks, section:
• Definitions
The changes made to section Definitions were to update the "staff personnel' titles.
After discussion, a motion was made by Commissioner Luhring, seconded by
Secretary Girard to approve changes to the exempt and non-exempt handbooks.
Motion was unanimously carried. (Changes attached.)
8. Approve Rescheduling the December 31, 2014 Regular Commission Meeting
to Wednesday, December 17, 2014 at 3:00 p.m.
A motion was made by Commissioner Bordson, seconded by Secretary Girard to
reschedule the December 31, 2014 regular commission meeting to Wednesday,
December 17, 2014 at 3:00 p.m. Motion was unanimously carried.
9. Approve Payment in Lieu of Taxes (PILOT) Transfer for 2015
GM Carter presented the 2015 HUC Transfer letter requesting the Board approve
the agreed upon transfer amount of $939,000 for 2015, which was approved by the
City Council at the November 12 council meeting.
A motion was made by Commissioner Bordson, seconded by Commissioner
Luhring to approve the Payment in Lieu of Taxes (PILOT) transfer for 2015 in the
amount of $939,000. Motion was unanimously carried. (2015 HUC Transfer Letter
attached.)
10. Declare HUC Employee Recognition/Holiday Dinner as an Open Meeting on
Friday, December 12 at 6 p.m.
A motion was made by Commissioner Bordson, seconded by Commissioner
Luhring to declare the HUC employee recognition/holiday dinner as an open
meeting on Friday, December 12 at 6 p.m. Motion was unanimously carried.
2
11. Communication from the Interim City Administrator
Interim City Administrator Sebora reported:
• The City extended a contract to the City Administrator. The contract is to be
finalized next week and approved by City Council on December 9.
12. Division Reports
GM Carter reported:
Nothing to report
Finance — Jared Martig
• No more phone calls received on utilities collection scam.
• Next month's financials may be distributed the morning of the December 17
commission meeting.
Electric — Dave Hunstad
Nothing to report
Natural Gas — John Webster
• Purchased another fixed price contract for November 2015 through October
2024 at $4.75 to keep HUC's average price to the customer below $5.
• Natural Gas Division completed the annual check at Village Cooperative last
Thursday.
13. Legal Update
Nothing to report
Unfinished Business
• Discuss Separate Business Unit for Wholesale Business
o Will be working on a blended model in the next week.
• Discuss Compensation Study
o Nothing to report
New Business
Review Revised 2015 Budget
o GM Carter distributed the detailed income statement and discussed
potential revenue opportunities and considering different power cost
adjustment mechanisms in the future. GM Carter discussed areas of
savings being considered in securing another dental insurance provider and
comparing costs of different healthcare plans. HUC will continue to look at
other cost savings opportunities.
The final budget will be on the agenda to be approved at the December 17
regular commission meeting with the understanding the Board will be open
to future budget revisions.
3
• Closed Session to Conduct the Six -Month Performance Review of Hutchinson
Utilities Commission's General Manager Pursuant to Minnesota Statute 13 D
.05 Subd. 3(a)
At 4:10 p.m. a motion was made by Commissioner Luhring, seconded by
Secretary Girard to move into a closed session meeting to conduct the six-
month performance review of Hutchinson Utilities Commission's General
Manager. Motion was unanimously carried.
ATTEST:
—
Anthony Han on, Pres dent
4
A& -/ /_ r
Mar Girar , Secretary
Payment of Your Bill
Payments may be personally presented during office hours at HUC's business office or
drive -up window located at 225 Michigan Street Southeast. Payments are due by the
date shown on the statement and may be paid by:
• cash
• check
• money order
• VISA/MasterCard/Discover
• drop box at Cash Wise Foods, Hutchinson City Center or HUC's business office
• automatic bank payment plan
• online at www.hutchinsonutilities.com or HUCbilling(a�-ci.hutchinson.mn.us
• phone toll free at 855-820-2288.
When paying in any manner other than cash, no change will be given. No second party
or post-dated checks will be accepted. Checks will not be held.
A dishonored Ghee;F-payment is treated as a non-payment. If notification of the
dishonored shes�-payment is received by HUC, the customer will be charged a $30
processing fee.
Disconnection of Residential Services by HUC
1. Residential utility service shall be disconnected for any of the following reasons:
• Failure to pay by the deadline on a delinquent account or failure to comply with
the terms of the budget payment plan.
• Failure to contact HUC to gain protection from disconnection under the Cold
Weather Rule.
• Failure to maintain the payment agreement established under the Cold Weather
Rule.
• Failure to comply with deposit requirement.
• Failure to pay for merchandise or charges for non-utility service billed by HUC.
• Payment of bill with a dishonored check.
• Failure to provide authorized utility personnel access to utility equipment.
• HUC shall disconnect residential utility service, without notice, where service has
been reconnected without HUC's authorization.
• HUC shall disconnect residential utility service, without notice, where it has
reasonable evidence that utility service is being obtained by potentially unsafe
devices or potentially unsafe methods that stop or interfere with the proper
metering of the utility service.
• HUC may disconnect residential utility service, without notice, where a
dangerous condition exists for as long as the condition exists.
• At the request of the property owner, as long as it's currently in owner's name.
• At the request of the realtor/bank, as long as it's currently in their name.
• If an account owner or property owner does not notify us, within three (3)
business days following disconnection of service for non-payment, a final bill will
be processed the "i" will be finaled and the account will be closed.
2. HUC must have a Landlord Agreement on file acknowledging that landlord/owner will
be responsible for all utility charges after the read-out date requested by a tenant.
Failure of the landlord/owner to execute this form will lead to a shut off of services on
the read-out date requested from tenant.
3. For all items mentioned in number 1 and 2 above, a disconnect/reconnect fee shall
be applied. The disconnect/reconnect fee is as follows:
• A $40 trip charge to disconnect.
• A $40 trip charge to reconnect, payment shall be made with cash, money order
or credit card during regular business hours.
• After hours reconnection will follow the After Hours Reconnection Policy.
4. In the event that the customer pays after the deadline given on the disconnect letter,
and the payment is processed before physical disconnection, a $40 Removal from
Disconnect List Fee will be applied to their account.
5. If a realtor/bank requests to have service reconnected for one day in order to
perform an inspection, a $40 trip charge to reconnect and a $40 disconnect charge
will be applied.
6. In the event of unauthorized use of, or tampering with the equipment of HUC, a
tampering charge of $100 will be assessed to the customer's account. The
appropriate law enforcement agency will be notified. HUC reserves the right to
charge the customer for the cost of repairs to the equipment of HUC.
7. A dishonored Chipayment will be assessed a $30 processing fee.
8. A dishonored rhepayment that was written made to avoid disconnection, or to
get reconnected, will be assessed a $30 processing fee; plus:
• A $40 trip charge to deliver a door hanger, giving customer 24 hours to make
c-heGk payment_good with cash, money order or credit card.
9. HUC is not required to furnish residential service under conditions requiring
operation in parallel with generating equipment connected to the customer's system
if such operation is hazardous or may interfere with its own operations or service to
other customers or operation as a condition or rendering service under such
circumstances. For additional information, see HUC's Parallel Generation Policy.
FAILURE TO RESPOND TO THE DISCONNECT NOTICE SET FORTH ON THE BILL
OR FAILURE TO PAY FOR SERVICES RENDERED BY HUC MAY RESULT IN THE
DISCONNECTION OF SERVICES TO THE PROPERTY WITHOUT ANY ADDITIONAL
NOTICE TO THE CUSTOMER. IT IS THE CUSTOMER'S RESPONSIBILITY TO PAY
FOR SERVICES RENDERED AND TO ADVISE HUC OF ANY CHANGE IN
ADDRESS. NEITHER HUC NOR THE CITY OF HUTCHINSON, NOR ANY OF THE
AGENTS, EMPLOYEES OR REPRESENTATIVES OF THE CITY OF HUTCHINSON
OR HUC, WILL BE RESPONSIBLE FOR ANY DAMAGES OR CLAIMS INCURRED AS
A RESULT OF THE DISCONNECTION OF SERVICES.
Residential utility service may not be disconnected or refused for any of the following
reasons:
• Delinquency in payment for services by a previous occupant of the premises to
be served.
• Failure to pay for a different rate classification of utility service.
• Failure to pay the account of another customer as guarantor thereof.
• Failure to pay charges arising from any underbilling occurring more than year
prior to the current billing and due to any misapplication of rates or faulty
metering.
• If a customer is on the Budget Payment Plan and has a credit balance on
account.
Disconnection of Commercial Services by HUC
1. Commercial utility service shall be disconnected for any of the following reasons:
• Failure to pay by the deadline on a delinquent account.
• Failure to comply with deposit requirement.
• Failure to pay for merchandise or charges for non-utility service billed by HUC.
• Payment of bill with a dishonored check.
• Failure to provide authorized HUC personnel access to utility equipment.
• HUC shall disconnect commercial utility service, without notice, where service
has been reconnected without HUC's authorization.
• HUC shall disconnect commercial utility service, without notice, where it has
reasonable evidence that utility service is being obtained by potentially unsafe
devices or potentially unsafe methods that stop or interfere with the proper
metering of the utility service.
• HUC may disconnect commercial utility service, without notice, where a
dangerous condition exists for as long as the condition exists.
• At the request of the property owner, as long as it's currently in owner's name.
• At the request of the realtor/bank, as long as it's currently in their name.
2. HUC must have a Landlord Agreement on file acknowledging that landlord/owner
will be responsible for all utility charges after the read-out date requested by a
tenant. Failure of the landlord/owner to execute this form will lead to a shut off of
services on the read-out date requested from tenant.
3. For all items mentioned in number 1 and 2 above, a disconnect/reconnect fee shall
be applied. The disconnect/reconnect fee is as follows:
• A $40 trip charge to disconnect.
• A $40 trip charge to reconnect, payment shall be made with cash, money order
or credit card during regular business hours.
• After hours reconnection will follow the After Hours Reconnection Policy.
4. In the event that the customer pays after the deadline given on the disconnect letter,
and the payment is processed before physical disconnection, a $40 Removal from
Disconnect List Fee will be applied to their account.
5. If a realtor/bank requests to have service reconnected for one day in order to
perform an inspection, a $40 trip charge to reconnect and a $40 disconnect charge
will be applied.
6. In the event of unauthorized use of, or tampering with the equipment of HUC, a
tampering charge of $100 will be assessed to the customer's account. The
appropriate law enforcement agency will be notified. HUC reserves the right to
charge the customer for the cost of repairs to the equipment of HUC.
7. A dishonored payment will be assessed a $30 processing fee.
78.A dishonored cam -payment made to avoid disconnection, or to get reconnected,
will be assessed a $30 processing fee; plus:
• A $40 trip charge to deliver a door hanger, giving customer 24 hours to make
Ghesk-pgment good with cash, money order or credit card.
89. HUC is not required to furnish commercial service under conditions requiring
operation in parallel with generating equipment connected to the customer's system
if such operation is hazardous or may interfere with its own operations or service to
other customers or operation as a condition or rendering service under such
circumstances. For additional information, see HUC's Parallel Generation Policy.
FAILURE TO RESPOND TO THE DISCONNECT NOTICE SET FORTH ON THE BILL
OR FAILURE TO PAY FOR SERVICES RENDERED BY HUC MAY RESULT IN THE
DISCONNECTION OF SERVICES TO THE PROPERTY WITHOUT ANY ADDITIONAL
NOTICE TO THE CUSTOMER. IT IS THE CUSTOMER'S RESPONSIBILITY TO PAY
FOR SERVICES RENDERED AND TO ADVISE HUC OF ANY CHANGE IN
ADDRESS. NEITHER HUC NOR THE CITY OF HUTCHINSON, NOR ANY OF THE
AGENTS, EMPLOYEES OR REPRESENTATIVES OF THE CITY OF HUTCHINSON
OR HUC, WILL BE RESPONSIBLE FOR ANY DAMAGES OR CLAIMS INCURRED AS
A RESULT OF THE DISCONNECTION OF SERVICES.
Commercial utility service may not be disconnected or refused for any of the following
reasons:
• Delinquency in payment for services by a previous occupant of the premises to
be served.
• Failure to pay for a different rate classification of utility service.
• Failure to pay the account of another customer as guarantor thereof.
• Failure to pay charges arising from any underbilling occurring more than
year prior to the current billing and due to any misapplication of rates or faulty
metering.
NON-EXEMPT
DEFINITIONS
In this Handbook, the following terms shall have the meanings as listed below:
"Commission" means the Hutchinson Utilities Commission.
"Essential employees" means power plant operators, system controllers, line workers, and
natural gas service workers.
"Exempt employees" means executive, professional and administrative employees as those terms
are defined in the Fair Labor Standards Act ("FLSA") and who are not subject to the minimum
wage and overtime provisions of the FLSA.
"General Manager" means the Chief Executive of Hutchinson Utilities who is appointed by the
Commission.
"Immediate family" means spouse or significant other, parent, stepparent, guardian, child, adult
child, stepchild, sibling, grandparent, grandchild, and any in-law.
"Non-exempt employees" are employees who are generally paid hourly and are subject to the
minimum wage and overtime provisions of the FLSA.
"Regular full-time employee" means an employee who has been appointed to an authorized,
budgeted position who is not temporary or probationary and who is regularly scheduled to work
40 hours during a work week. Generally, regular full-time employees are eligible for Utility
benefit programs subject to the terms, conditions and limitations of each benefit program.
"Seniority" means length of consecutive employment as a regular full-time employee with
Hutchinson Utilities.
"Staff personnel" means- ir-eeterfzleetrie Division, Director of Natural Gas Division,
Custom uman Relations Manager, Manager of Electric Production, Manager of Electric
Transmission/Distribution, Manager- of ingineering ServieesEn ing eering Services Manager,
Finance Manager, Accountant, Administrative Coordinator, Purchasing Agent, Inventory Agent,
Computer Systems Analyst, Energy Conservation Administrator, and Accounts Supervisor.
"Temporary employee" means an employee who may work up to 40 hours per week but for a
maximum of 24 weeks per year, even if not consecutive weeks. Temporary positions are eligible
for legally mandated benefits such as Social Security but are ineligible for Utility benefit
programs.
"Utility" and "Utilities" means Hutchinson Utilities.
"Working days" means Monday through Friday.
EXEMPT
DEFINITIONS
In this Handbook, the following terms shall have the meanings as listed below:
"Commission" means the Hutchinson Utilities Commission.
"Essential employees" means power plant operators, system controllers, line workers, and
natural gas service workers.
"Exempt employees" means executive, professional and administrative employees as those terms
are defined in the Fair Labor Standards Act ("FLSA") and who are not subject to the minimum
wage and overtime provisions of the FLSA.
"General Manager" means the Chief Executive of Hutchinson Utilities who is appointed by the
Commission.
"Immediate family" means spouse or significant other, parent, stepparent, guardian, child, adult,
adult child, stepchild, sibling, grandparent, grandchild, and any in-law.
"Non-exempt employees" are employees who are generally paid hourly and are subject to the
minimum wage and overtime provisions of the FLSA.
"Regular full-time employee" means an employee who has been appointed to an authorized,
budgeted position who is not temporary or probationary and who is regularly scheduled to work
40 hours during a work week. Generally, regular full-time employees are eligible for Utility
benefit programs subject to the terms, conditions and limitations of each benefit program.
"Seniority" means length of consecutive employment as a regular full-time employee with
Hutchinson Utilities.
"Staff personnel" means ireeter of Electric Din, Director of Natural Gas Division,
Custeme'Human Relations Manager, Manager of Electric Production, Manager of Electric
Transmission/Distribution, Manages -of Engineering a v4eesEn in�g Services Manager,
Finance Manager, Accountant, Administrative Coordinator, Purchasing Agent, Inventory Agent,
Computer Systems Analyst, Energy Conservation Administrator, and Accounts Supervisor.
"Temporary employee" means an employee who may work up to 40 hours per week but for a
maximum of 24 weeks per year, even if not consecutive weeks. Temporary positions are eligible
for legally mandated benefits such as Social Security but are ineligible for Utility benefit
programs.
"Utility" and "Utilities" means Hutchinson Utilities.
"Working days" means Monday through Friday.
Hutchinson
Utilities
Commission
225 Michigan Street SE
Hutchinson, Minnesota
55350-1905
Dear Hutchinson Utilities Commissioners:
Re: 2015 HUC Transfer
Earlier this year a joint meeting took place between HUC and the City. At
this meeting, a recap of the previous year was discussed, along with the
current year and future year's outlook. Part of this meeting included a
discussion on the needs of HUC in the near term, including the financial
challenges that HUC faces due to, among other things, rising costs
particularly in the electric division.
In September of this year, both sub -committees met to discuss the 2015
transfer and the amount achievable by both organizations at that time. As a
result of those discussions, it was proposed that there is a City transfer
reduction for 2015 of the additional $500,000 that will be transferred in 2014
outside of the base transfer amount, in addition to a base amount reduction
of $500,000 (transfer percent) to a total 2015 transfer figure of $939,000.
At the November 12th council meeting the board took action to approve the
sub -committees agreed amount total transfer of $939,000. The City is
fortunate to receive in 2014 a base transfer amount of $1,430,000 this year
from HUC. In addition to the base transfer amount, an agreed upon
additional $500,000 is being transferred for a total transfer of $1,930,000.
This reduction to the 2015 HUC base amount transfer can be offset by the
City with reserves set aside in previous years above what was needed in
the general fund budgets at those times. The City will look to back -fill those
reserves into the 2015 general fund budget in place of the reduced transfer
amount for 2015. This will result in no net tax levy impact to the City in
2015.
ask the Hutchinson Utilities Commissioners to approve the agreed upon
transfer amount for 2015 of $939,000. To reiterate, this amount has been
Anthony Hanson supported and approved by the City Council.
President
Monty Morrow If there are an questions on this item lease let me know.
Vice President y q p
Mark Girard
Secretary
Donna Luhring
Commissioner Sincerely,
Dwight Bordson
Commissioner
Jeremy Carter Jeremy J. Carter
General Manager General Manager
Hutchinson Utilities Commission
Tel 320-587-4746
Fax 320-587-4721
Detailed Income Statement
Electric Division
-------------- -- - -
T 2U31 Actual I lou Actual 2013 Actual 10/31/14 YTO T-2013 Budget 2014 eva8et zo15 Budget
OPERATING REVENUES
Energy Sales Revenue
$ 486,057
$ 520.388
$ 426,127 $
480,000
$ 500,250
$ 455,177
$ 223,747
$ 256,262
Saes- Electric Energy (440. 442. 444,,
S
26,167,402
S 25,380,225
$ 24,598,181
$ 21,175,383
$ 25,900,507
$ 24,982,080
$ 24,570,604
Other Energy Sales (447)
S
1,234,286
S 1,618,582
$ 891.276
$ 623,656
S 1,512,000
$ 1,057,400
$ 994,000
Total Energy Sales Revenue (440, 442, 444, 447)
$
27,401,687
$ 26,998,808
$ 25,489.457
$ 21,799,039
$ 27,412,507
S 26,039,480
S 25,584,604
Revenue From Other Sources
$ 23,980
$ 23.946 $
31,900
$ 31,900
$ 30,000
$ 101,262
$ 101,596
$ 95.031
Revenue From Other Sources (450,451)
S
295,586
S 299,693
S 297,525
S 251,210
$ 220,000
5 220,000
$ 270,200
Security Lights (454,01)
S
1D,585
$ 11,002
S 11,033
S 9,417
S 10,000
5 10,000
$ 10,000
Pole Rental (454.02, 454.03)
$
264
S 133
$ 32
$ 16
$ 500
$ 500
S
Total Revenue From Other Sources (450, 451, 454)
$
306,435
$ 310,828
S 308,589
$ 260,643
$ 230,500
$ 230,500
$ 280,200
TOTAL. OPERATING REVENUES
S
27,708,122
S 27,309,636
$ 25,798,046
$ 22,059,682
$ 27,643,007
$ 26,259,980
$ 25,844,604
OPERATING EXPENSES
Production Operations
Operation SupervLan & Engineering (546)
Fuel (547)
Operating Suppe. es and Expense (550)
Total Production Operations (546, 547, 550, 554)
Maintenance Operations
Structures (554)
Generating Units (554)
Other Equipment 1554)
Total Maintenance Operations (554)
Other Power Supply Expense
Purchased Power (555)
System Control & Load Dispatch (556)
Eng neering Services (557)
Total Other Power Supply Expense (555, 556, 557)
Transmission Expense
Transmisson Expense Operation (560)
Transmission Expense Operation (565)
Transmission Expense Operation (567)
Transmission Expense Maintenance (574)
Total Transmission Expense (560, 567, 574)
Distribution Expense:
Distribution Operation (580, 581, 586, 588, 589)
Distnbutlon Mantenance (592. 594, 595, 596, 598)
Total Distribution Expanse (580,581. 586, 566, Sag, 592, 594, 595. 596. 596)
Customer Service and Collection
Meter Reading (902)
Ce°ecdon Expense (903i
Bad Debt Write offs (904)
Customer Services (906;
Total Customer Service and Collection (902, 903, 904, 906)
Sales Expense
Supervison (9. 1)
Misc Selong Expense 1916)
Total Sales Expense (911, 916)
Administrative and General
Adminstrative and General Labor(920.,
Office Suppies and Expenses (921)
Outside Services (923)
Property lnsurance (924)
Employee Penson & Benefits (926)
Regulatory Expense (928)
Mise General Expense (930)
Malnt Of General Plant (935)
Total Administrative and General (920, 921, 923, 924, 926, 929, 930, 935)
Other Expenses
Deprec.a0on Expense (403)
Payment In Lieu of Taxes (408)
Contribution To City - Roadway Lighting (408;
Total Other Expenses (403, 407, 406)
S 979,472 $ 993,233 $ 1,126,083 $ 875,792 $ 1,140,600 $ 1,072,165 $ 1,677,897
$ 1,692,828 $ 1,835,135 $ 2,156,277 $ 1,212,614 $ 2,642,650 S 2,180,050 $ 1,795,025
$ 85,556 $ 133,010 $ 162,780 $ 132,084 $ 146.000 $ 111,100 5 117,600
$ 2,757,855 $ 2,961,378 $ 3,445,139 S 2,220,490 $ 4,131,250 $ 3,363,315 $ 3,590,522
S 526 $ 622 $ 448 $ 5,992 $ 1,000 $ 100 $ 5,000
S 212,140 S 291,664 $ 318,352 S 313,070 S 388,500 S 236,200 S 418,536
$ 112,968 $ 160,409 S 180,501 $ 99,638 $ 94,500 $ 101,500 $ 35,000
$ 325,634 $ 452,914 S 499,300 $ 418,700 $ 484,000 S 337,800 S 458,538
$ 15,440,922 $ 14,623,407 $ 13,342,967 $ 11,628,407 $ 13,253,846 $ 13,445,430 $ 14,862,607
$ 308,868 $ 337,475 S 330,932 $ 246,404 $ 329,600 5 304,500 $ 627,005
$ 25,365 $ 18 891 $ 95,932 $ 9,208 $ 55,000 $ 25,000 $
S 15,774,955 S 15,179,774 $ 13,769,830 $ 11.884,018 $ 13,638,446 $ 13,774,929 $ 15,459,612
S 129,568 $ 129,568 $ 129,568 5 158.572 $ 140,000 $ 135,000 $ -
S - S 969,927 $ 1,289,968 S 1,169,930 $ 984,489 S 1,150,000 5 1,535,000
S 259 $ 174 $ 82 S - $ 1,000 $ 1,000 S 100
$ 12,498 $ 72,590 $ 73,734 $ 20,961 $ 26.200 $ 24,000 S 31,019
$ 142,324 $ 1,172,258 S 1,493,352 $ 1,349,463 $ 11151,689 S 1,310,000 $ 1,566,119
$ 523,088 S 566.646 S 560.929 S 467350 $ 482.600 $ 420,350 S 1,173,208
S 229,774 S 267,200 5 321,821 $ 217.989 $ 232,500 S 220,500 S 268,938
$ 752,862 $ 533,846 $ 882,750 $ 685,339 $ 715,100 $ 640,850 $ 1,442,146
$ 76,909 S 30,835 S 18,794 5 14,600 $ 17,050 $ 17,050 $ 21,108
S 111,354 S 87,903 S 127,589 $ 97,130 S 122,320 $ 105.545 S 176,059
$ 3,422 $ 3,191 $ 5,070 S 22,761 S 5,500 $ 3,300 S 8,250
$ 40.412 S 44,819 $ 40,250 $ 40.554 S 46,750 $ 41,250 $ 53,347
S 232,098 S 166,748 S 191,713 S 175,045 $ 191,620 $ 167,145 S 258,763
$ 6,125 $ 6,128 $ 5,684 $ 5,010 $ 6,240 $ 6,000 S -
$ 164,638 $ 199,456 $ 192,057 $ 200,643 $ 200,760 $ 301,500 $ 374,942
S 170,784 S 205,584 $ 197,740 $ 205,553 S 207,000 $ 307,500 $ 374,942
$ 470,258
$ 486,057
$ 520.388
$ 426,127 $
480,000
$ 500,250
$ 455,177
$ 223,747
$ 256,262
$ 281,574
5 224,961 $
242,625
S 184,125
$ 222.300
$ 147,311
$ 150,240
$ 147,846
$ 103,933 S
109,031
$ 56,475
$ 124,181
S 112,988
$ 104,135
$ 102,512
$ 76,730 $
117,150
$ 105,050
$ 105,000
$ 1,170,753
$ 1,186,792
$ 1,240.786
$ 1,075,177 $
1 174,129
$ 1,324,875
$ 210,455
$ 28,750
$ 52.925
$ 23,980
$ 23.946 $
31,900
$ 31,900
$ 30,000
$ 101,262
$ 101,596
$ 95.031
S 71,901 $
106,975
S 103,675
$ 106,138
$ 45,661
$ 48,356
$ 71,061
S 37,953 $
47,080
$ 37,180
$ 47,861
$ 2,300,752
$ 2,386,364
$ 2,493,179
S 2,040,728 S
2,309,890
S 2,343,530
S 1,301,110
S 2,264,770 $ 2,289,199 S 2,612,388 S 2,250,000 $ 2,400,000 S 2,700,000 $ 2,700,000
S 718,849 $ 738,871 S 912,000 S 882,514 $ 935,667 S 1,235,000 $ 384.391
$ 143,000 $ 148,585 S 142,686 $ $ 142,666 $ $ 146,739
$ 3,146,418 $ 3,176,655 S 3,667,055 $ 3,112,514 3 3,478,333 $ 3,935,000 $ 3,231,130
TOTAL OPERATING EXPENSES -WITH ALLOCATION Va
OPERATING INCOME (LOSS) - WITH ALLOCATION %'s
NONOPERATING REVENUESI(EXPENSES)
Merchandise & Contract Work. Net
Interest Income
Misc. Income
Bond Service Fees
Interest Expense - Bonds
Gain (Loss) On Disposa,
Amortization of Bond D scount and Issuance Costs
Amoni7a0on-Deve:opment Study
TOTAL NONOPERATING REVENUESIEXPENSES
NET INCOME
COGS
Gross Profit
Gross Margin
Operating Margin (%)
Net Income (%) of Operating Saes
Net Income (%) of Operating Sales (aftercap labor)
$ 25,603,663 $ 26,535,522 3 26,630,059 S 22,091,849 $ 26,306,325 $ 26,160,069 3 27,712,882
$ 2,104,460 $ 774,114 $ (832,013) $ (32,167) $ 1,336,678 $ 89,911 $ (1,668,078)
$ 27,867 S {20, M S (21,474; S 14,616 S 5,520 S 10,000
$ 27,867 S 28,126 $ 37,970 $ 12,565 $ 30,000 $ 30,000 3 32,500
$ 28,627 $ 294,299 $ 58,031 $ 32,425 S 15,000 $ 15,000 $ -
$ (1,850, S (1,850) $ (2,400 $ - $ (3,000) $ (3,000) $ (2,400)
S (200,539: $ (159,221) $ (85,537) S (33,740) $ (113,849) $ (112,849) $ (35,613)
S 157,997 S 4,582 $ 10,000 $ - $ 10,000 $ . $
S (1,864) S (1,864) $ - $ - S (21,000) S (21,000} $
$ ._(725,078) $ (473,196) $ (525,943) $ (438,286) $ __(200,000) $ - $ (262,972)
$ (686,973) $ (329,484) $ (529,353) $ (412,401) $ (277,329) $ (81,849) $ (268,484)
$ 1,417,487 $ 444,630 $ (1,361,366) $ (444,568) S 1,059,350 S 8,062 $ (2,136,562)
$ $ - $ - $ - S - $
$ 19,000,769 $ 19,766,325 $ 19,207,621 S 15,872,671 S 19,405,385 S 18,786,044 S 11,104,790
S 8,707,354 $ 7,543,312 $ 6,590,424 $ 6,187,011 S 8,237,621 S 7,483,936 $ 4,740,014
31.4% 27.6% 255% 18.0% 29.8% 28.5% 18.3%
7.6% 2.8% .3.1% -0.1% 4.8% 0.3% -7.1%
5.1% 1.6% -5.3% -2.0% 3.8% 0.0% -&3%
-6.9%
NET INCOME
2015 Net Income
$
(2,136,562)
Capitalized Labor -Energy Services
$
23,838
Capitalized Labor - Production
$
62,760
Capitalized Labor -0, stribution
$
276,533
2015 Net income
CASH FLOW STATEMENT
-2015
Net Income
$
(2,136,562)
Depreciation
$
2,700,000
Amortization - Dev Study
$
262,972
2015 Cap Exp
$
(573,500)
20038 Principal
$
(125,000)
2015 Electric Cash Flow
$
127,910
Detailed Income Statement
Gas Division
1. -
1
2011 Actual 1 2012 Actual 1 2013 Actual 1
10/31114 YTD I
2013 Budget 12014
Budget
1 2015 Buffet i
OPERATING REVENUES
2,156,625 $
2,950,652 $
4,238,643 $
3,121,050 $
3,895,981 S
3,516,110
$ 9,028,704 $
6,400,838 $
Sales -Natural Gas-Retall
$
8,150,949 S
6,848,463 S
8,356,513
S 6,506,037 S
7,962,713
$ 8,490,262
S 7,980,628
Contract Sale to Large Customer (Includes 3M & HTI transport)
$
4,246,780 S
2,826,424 $
3,646,509
$ 5,079,594 $
3,880,832
$ 4,533,751
$ 4,034,279
New Ulm Transportation
$
724,187 S
755,472 $
785,149
$ 665,738 $
700,000
$ 700,000
$ 725,100
Transportation -Electric Division
$
11100,000 $
1,100,000 $
1,100,000
$ 563,333 S
1,100,000 $
700,000
$ 641,833
TOTAL OPERATING REVENUES S 14,221,917 $ 11,530,359 $ 13,686,170 $ 12,834,702 6 13,643,545 $ 14,424,013 $ 13,381,640
OPERATING EXPENSES
Purchased Gas
Purchased Gas for Reta'1 (807)
Contract Gas for Large Customer
Total Purchased Gas
Transmission
Gas Transmission Operations (856)
Gas Transmission Maintenance (863)
Total Transmission (856, 663)
Distribution Operations
Supervision and Engineering (870)
Mains and Services (874)
Meters (878)
Misc, (880)
Total Distribution Operation (870, 874, 878, 880)
Distribution Maintenance
Lines -Services and Mains (892)
Meters and House Regulators (893)
Mentenance of Otter Plant (895)
Total Distribution Maintenance (892, 093, $95)
Customer Service and Collection
Meter Reading (902)
Caleclbn Expense (903)
Bad Debt Write offs (904)
Customer Services (906)
Total Customer Service and Collection (902, 90A 904, 906)
Sales Expense
SuperA3on (911)
Misc. Se'Lng Expense (9 16)
Tont Sales Expense (911, 916)
Admintstrative and General
Adninstrative and General Labor (920)
Office Supplies and Expenses (921)
Outside Services (923)
Property Insurance (924)
Employee Pension & Benefits (926)
Regulatory Expense (928)
Misc. General Expense (930)
Maht Of General Plant (935)
Total Administrative and General (920, 921, 923, 924, 925, 928, 930, 939)
Other Expenses
Depreciation Expense (403)
Payment M Lieu of Taxes (408)
Total Other Expenses (403, 408)
TOTAL OPERATING EXPENSES - WITH ALLOCATION %'s
OPERATING INCOME (LOSS) - WITH ALLOCATION %'s
NONOPERATiNG REVENUESI(EXPENSES)
Merchandise & Contract Work, Net
Interest Income
MBsc. income
Bond Premium
Mee. Expense
Merest Expense - Bonds
Merest Expense - Customer Deposits
Gain (Loss) On Disposal
Amorttradon of fiord Discount and Issuance Coss
AmoNvdon-Development Study
TOTAL NONOPERATING REVENUESS_XPENSES
NET INCOME
$ 5,604,375 S
4,244,213 S
4,482,870 $
3,944,237 $
4,112,827 $
4,106,506 $
4,064,314
$ 3,424,329 $
2,156,625 $
2,950,652 $
4,238,643 $
3,121,050 $
3,895,981 S
3,516,110
$ 9,028,704 $
6,400,838 $
7,433,522 $
8,182,979 $
7,233,677 S
7,802,486 S
7,580,424
$ 95,499 $
105,733 $
114,377 $
92,265 $
105,600 $
109,500 $
163,151
$ 2,962 $
11,910 $
4,001 $
2,566 $
11,000 $
11,500 $
18,018
$ 98,461 $
117,642 $
118,378 $
94,831 $
116,500 $
121,000 $
181,169
S 146,314 S
120,292 $
161,338 $
121,755 $
146,500 $
155,000 S
408,102
$ 90,996 $
72,542 S
76,123 $
92,925 $
93,000 $
129,500 S
96,799
$ 984 $
61 $
240 $
2,493 S
3,500 $
3,500 $
759
$ 163,590 $
199,239 $
168,179 $
143,480 $
174.600 $
161,100 $
187,184
$ 401,884 $
392,134 $
405,879 S
360,654 S
417,600 $
449,100 $
692,945
$ 108,664 $
147,997 $
126,902 $
83.811 $
110,500 $
133,000 $
191,598
$ 13,014 $
20,779 $
9,932 $
21,405 $
15,000 $
20,000 $
22,007
$ 67,154 $
57,648 $
47,403 $
21,650 $
58,500 $
56,000 $
172240
$ 18&833 $
226,424 $
194,237 S
126,867 S
184,000 $
209,000 $
385,846
$ 62,926 S
25,229 $
15,377 S
11,945 $
13,950 $
13,960 $
17270
$ 91108 $
71,920 S
104,391 S
79,470 $
100,080 $
86,355 $
144,048
$ 2,$W S
2,611 $
4,148 S
18,623 $
4,500 $
2,700 $
6,750
$ 33,064 $
36,670 $
32,940 S
33,180 $
38,250 $
33,750 S
43,647
$ 189,898 $
136,430 $
156,856 $
143,218 $
156,780 S
136,755 $
211,715
$ 2,042 $
2,043 $
1,895 S
1,670 $
2,080 $
2,000 $
-
$ 54,879 $
66,485 $
64,019 $
66,848 $
65,920 $
100,500 $
228,170
$ 56,921 S
68,528 S
65,913 $
66,518 5
69,000 $
102,500 111
228,170
$ 156,753 S
162,019 S
173,463 $
142,042 S
160,000 $
166,750 $
151,726
$ 74,582 $
85,421 $
93,858 $
74,987 S
80,875 $
61,375 $
74,100
S 49,104 $
50,080 $
49,282 S
34,644 $
36,344 $
18,825 $
41,394
$ 92,445 $
85,202 $
83,874 $
62,779 $
95,850 S
85,950 $
70,000
$ 390,251 S
395,597 $
413,595 S
358,392 $
391,376 $
441,625 S
70,152
$ 23,523 S
43,302 $
19,620 $
19,593 $
26,100 $
26,100 $
20,000
$ 82,867 $
83.124 S
77,753 S
58,828 S
87,525 $
84,825 $
70,758
$ 37,359 $
39,564 S
58,141 $
31,053 $
38,520 $
30,420 $
31,907
$ 906,884 $
944,309 $
969,586 $
782,318 $
916,590 $
915,870 $
530,036
$ 1,042,071 $
1,043,234 S
1,027,662 $
880,000 $
1,056,000 $
1,056,000 S
1,056,000
$ 386,965 $
397,853 $
491,077 $
464,431 S
503,820 S
685,000 S
206,980
S 1,429,036 $
1,441,087 $
1,518,739 $
1,344,431 S
1,559,820 $
1,721,000 $
1,262,980
S 12,300,622 S 9,727,393 S 10,861110 S 11,103,716 $ 10,884,188 $ 11,487,711 $ 11,073,183
S 1,921,23 S
/,802,865 S
3,035,060 S
1,730,986 $
2.989,377 S
$688,302 $
2,30$,667
S 14,422 S
41,315 S
57,400 $
40,469 $
34,480 $
40,000 $
27,000
$ 25,081 $
105,463 S
37,970 S
12,585 $
30,000 $
25,000 S
32,500
$ 1,361 $
227,443 $
11008 S
244 S
1,000 $
1,000 $
$ - $
- S
185,608 S
154,674 $
- $
$
185,608
$ - $
- $
- S
(14,099) S
- $
(6,000) $
-
$ (956,152) S
(1,326,968) $
(1,271,801) $
(723,576) $
(1,347,881) S
(867,500) $
(825,500)
$ (847) S
(351) S
(2,346) $
$
(1,000) S
- $
(1,000)
S $
120 $
$
$
$
$
$ - $
(36,187) $
S
- $
$
- $
S $
S
$
$
$
$
S (916,135) $
(989,165) $
(992,180) S
(529,704) S
(1,283,201) $
(807,500) S
(581,392)
S 1,005,160 S
813,800 $
$04$900 $
1,201,282 S
1,708,176 S
$168,801 $
1,727,265
COGS
Gross profit
Gross Margin
Operating Margin (%)
Net Income (%) of Operating Sales
Net Income (%) of 0perating Sales (after cap labor)
$ 9,127,165 S
6,518,480 S
7,551,900 $
8,277,711 S
$ 5,094,752 S
5,011,878 $
6,336,270 $
4,556,991 $
36%
43%
46%
36%
14%
16%
22%
13%
7%
7%
15%
9%
7,350,377 $
7,923,486 $
7,761,593
6,293,168 $
6,500,527 S
5,620,247
46%
45%
42%
22%
21%
17%
13%
1S%
13%
14%
NET INCOME WrrH ADJUSTMENTS
—i0-15
2015 Net Income
$ 1,727,265
HR/Cust Serv. Mgr
$ -
Electric Division Dir.
$ -
Caplta". zed labor - Natural Gas
$ 123,318
2015 Net Income
$ 1,850,583
_ CASH FLOW STATEMENT WITH AM
2015 Net Income
$ 1,727,265
Depreciation
$ 1,056,000
2015 Cap Exp
$ (S21,000)
2012A Principal
$ (1,100,000)
2015 Gas Cash Flow
$ 1,162,265
2015 Cap Exp (As necessary) $ 645,000