New Ulm Utilities Commission Approves New Rates and Equipment Purchases

In a recent meeting, the New Ulm Public Utilities Commission discussed and approved changes to the co-generation and small power production rates for 2026, effective April 1. The meeting also saw approvals for significant equipment purchases for the water treatment plant and other infrastructure upgrades.

The commission approved a new rate schedule affecting solar and potentially other renewable energy sources. Residential rates will increase from 14.35 to 14.6 cents per kilowatt hour, small commercial rates will rise from 13.69 to 13.81 cents, and large commercial rates will increase from 10.97 to 11.17 cents per kilowatt hour. However, simultaneous purchase and sale billings and time of day purchase rates will decrease slightly. These adjustments are based on annual calculations and will be reflected in the April billing cycle.

A major focus of the meeting was the authorization of significant purchases to improve the city’s infrastructure. The commission approved the purchase of five replacement valves for the water treatment plant for $70,125 from Besco Incorporated. The labor for installing these valves, once they arrive, was also approved with a contract of $29,550 with Minnesota Mechanical Solutions Incorporated.

Furthermore, the commission greenlit the replacement of an outdated pump at the North Booster Station. The new pump, along with a VFD and control updates, will replace an original pump from the early 1980s. The contract for this labor was awarded to Minnesota Mechanical Solutions for $23,860.

Additionally, the commission addressed the Courtland Lift Station equipment replacement, approving a purchase from Parkson Corporation for $80,000. This decision marks the continuation of equipment upgrades initiated last month.

Other notable decisions included renewing a natural gas interconnect agreement with Hutchinson Utilities for a five-year term, which ensures continued gas delivery to New Ulm, with Northern Natural as a backup.

Lastly, in a strategic move to capitalize on cost savings, the commission authorized the purchase of eight 13.2 KVA breakers from Eaton Corporation. The bulk purchase, saving over $200,000, aims to expedite the replacement project initially planned over four years, potentially completing it in two to three years.

Note: This meeting summary was generated by AI, which can occasionally misspell names, misattribute actions, and state inaccuracies. This summary is intended to be a starting point and you should review the meeting record linked above before acting on anything you read. If we got something wrong, let us know. We’re working every day to improve our process in pursuit of universal local government transparency.
Mayor:
Kathleen Backer
Utility Board Officials:
Kim Williams, Sean Fingland, Vice, Shannon Hillesheim, Mary Ellen Schanus, Seth Visser, , JoAnn Sprenger (Clerical Assistant)

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