PUC waits for action on gas pipeline

New Ulm may join

project if Hutchinson gets OK from state and EQB

By RON LARSEN

Journal Staff Writer

NEW ULM -- A light agenda allowed the New Ulm Public Utilities Commission to focus Tuesday night on City of Hutchinson's application to put in an 89-mile natural gas pipeline serving its gas needs and possibly that of New Ulm's Public Utilities department.

Interim Utilities Director Dan Sonnek reported he has been listed as a witness to testify at hearings next week in St. Paul. He told commissioners he expected to be testifying in support of the pipeline "some time during the hearings next Wednesday or Thursday."

Although he expects Hutchinson to get its approval, "until it has the approval of both the state Public Utilities Commission and the Environmental Quality Bureau, it's a waiting game."

However, he expects both the PUC and the EQB to decide quickly, allowing Hutchinson to let bids on the project this summer. "Then, I would expect that Hutchinson would begin construction next spring."

He noted that it's not a given as yet that New Ulm will join in the project by building a 5-mile-long "feeder" line from the Hutchinson pipeline into New Ulm.

New Ulm utilities' current provider, Northern Natural Gas, has submitted a proposal for continuing to serve the city.

"However, to date, their proposals have been minimal at best so we didn't even get into details on it," Sonnek told the commissioners. "It's obvious they don't expect the pipeline to be approved. If it is approved, I feel Northern will be back with a more serious offer. Then, we'll take it to Hutchinson Pipeline and see what kind of deal they're willing to make. We will try to get the best possible deal for our customers."

However, time is of the essence because New Ulm PUC has until this November to notify Northern Natural Gas if it's going elsewhere for its gas. That would end the contract with Northern in November 2003.

While they're willing to look at other offers from Northern Natural Gas, Sonnek said, it's almost certain "we'll be laying pipe if Hutch gets its approval."

In other business, the commission approved extending the department's high efficiency air conditioning rebate program through July. The $10,000 the department has invested already into the rebate program is used up, and the mechanics of the program has slowed installations, Commission Chairman James Hogen reported.

The PUC also will plow another $20,000 into the program, Sonnek said. The funds available for the program come from the electric and natural gas funds.

"If we don't use the money for the program, then we have to pay that money to the state," Sonnek explained.

The commission also extended its contract with Great River Energy to its Pleasant Valley Station at Dexter to bring their wastewater into the New Ulm wastewater treatment plant.