PUC ponders gas fund surplus

By RON LARSEN

Journal Staff Writer

NEW ULM -- The burgeoning surplus in the natural gas fund, now at nearly $1.5 million, took center stage at the Public Utilities Commission's November meeting Tuesday night.

Commission President Rick Jensen, obviously not enthused about leaving office with a large surplus in the natural gas fund, asked Utilities Director Robert Stevenson if his staff had been able to determine how "those fuel cost adjustors led to overcharges in the natural gas account."

"I don't like to use the word overcharges," Stevenson responded, evoking laughter from Jensen and the other commissioners. "Before we consider giving it back, we should study it. We need to find out what is going on, and we probably won't have an answer before March or April."

Jensen wondered if consumption figures could be used in figuring out the problem faster.

"We probably won't be seeing any $2-$10 spikes this heating season so we should be able to figure out where we're at."

"I think we need to close the books on December, and then there's a two-month period to get the final figures," Stevenson responded.

"Don't we need to resolve this by the end of the year?" Jensen asked.

"I don't think we can assume there's a large pot of money out there," Kris Manderfeld, utilities accountant, responded. "We need to approach this very cautiously to make sure we're not doing the wrong thing."

She then answered yes to Jensen's question about whether there is a window of opportunity to go back into this year's business to make any adjustments that might be required.

However, that solution did not suit Commissioner William O'Connor.

"We should address it before the end of the year."

"I just want to know that when we know, we can clear it, and it appears we can," Jensen said.

The commission approved a 4 percent across-the-board water rate increase.

"Since our budget meeting, I've analyzed the various classes," Stevenson said, "and each class is contributing within .1 percent of each other so that's why I am recommending the across-the-board increase."

Stevenson also reported the successful installation of 30 radio-equipped meters in time to take November readings next week.

The commissioners received confirmation that Minnesota has approved the FEMA grant of about $212,000 for installation of the underground 3M feeder. Utilities Engineer Dan Sonnek said federal approval, which is considered routine, should come before the end of the year.

Commissioners also approved a 40-cent-per-meter assessment on the city's water meters with the money to go to the Minnesota Environmental Science and Economic Review Board (MESERB) to do its own phosphorous initiative and survey.

"This group is attempting to get its view before the Minnesota Pollution Control Agency," Stevenson said. "We realize it is a health issue for fish, but I know we're going to have a tough time meeting the 1.0 (parts per million) limit. The fact is we can get very close, and we shouldn't have to be at 1.0."

In addition to authorizing modifications and revisions to the utilities department's personnel policy manual, adding a full-time clerical position and naming Commissioner James Hogan to the service territory subcommittee, the commission took note that the December meeting falls on Christmas Day this year so they moved the meeting to Dec. 26 at 7:30 p.m.