PUC hears Hutchinson Pipeline has opened bids

By RON LARSEN

Journal Staff Writer

NEW ULM -- Public Utilities Commissioners received the word Tuesday that 2002 revenues now exceed expenses by $1.5 million dollars, representing an 18.6 percent increase over projections.

They also learned that the Hutchinson pipeline project is coming closer to being a reality with a bid opening Tuesday.

With a net margin of $533,121 in August, more than double the month's projection, the public utilities' net margin for the year-to-date rose to $1,583,202.

Director Bruce Campbell said the electric division led the way with a net margin of $605,593, raising its year-to-date net margin to $658,955. The water division also had a positive margin for the month.

Dan Sonnek, director of engineering, reported Hutchinson Public Utilities had opened bids for materials and construction of its proposed 89-mile feeder pipeline.

While Hutchinson has yet to receive the go-ahead for its project, Sonnek said the early indication Tuesday from Hutchinson officials was that the bids "looked very favorable. However, they're still compiling and analyzing the bids."

New Ulm officials expected to hear today the results of the bid letting. Hutchinson isn't expected to get permit approval for another two weeks to possibly a month, Sonnek said.

"It looks like we won't be able to get an extension of our Nov. 30 deadline for notifying Northern Natural Gas of our intentions," Sonnek said. "So, we'll have to notify them that we're cancelling the contract. If it all falls apart later, we can go back to Northern at maximum rates, but that's not a problem because that's what we're paying now. They can't go any higher."

Andrew Brewer, representing the Minnesota Municipal Utilities Association, told the commission it's "looking very good for Hutchinson" in getting state approval. Brewer was at the meeting to report on MMUA's lobbying efforts on behalf of New Ulm Public Utilities and the other 128 municipal systems in the state.

He also warned the commission that service territory issues with rural electric cooperatives, stemming from annexation efforts by municipalities, are becoming a battle ground.

"This year, every annexation is being fought by the coops. They want to change the law," he said.

However, Campbell reported negotiations over a service territory agreement with Brown County Rural Electrical Association is continuing. Talks with Brown County REA were initiated last fall by the city after a planning session in which areas for future annexation were targeted.