Hibbing PUC approves June interim financials; revenue up year over year

The Hibbing Public Utilities Commission on July 15 approved the interim financial statements for the six months ended June 30, 2025. General Manager Luke Peterson presented the packet, noting revenue of $18.2 million compared with $16.9 million in the same period last year, an increase of $1.3 million attributed in part to a colder winter heating season. Operating expenses for the period were reported at about $16.5 million, leaving operating income of $1.7 million for the six-month period.

Peterson said total change in net position, which includes grant activity, stood at $13.4 million compared with $1.9 million in the prior year. He told commissioners the variance to year-to-date budget was largely a timing issue and pointed to pages in the packet showing actuals-to-budget comparisons.

Peterson and staff also reviewed key performance indicators. The utility’s debt ratio was reported at 8% versus an industry average of about 27.5%; return on assets was reported at approximately 1.1%, and staff said the budget targets a roughly 1% profit margin for the full year. Baker Tilly accounting staff were available on Zoom as listed in the meeting packet.

Commissioners asked for a project-level year-to-date balance view showing where individual capital projects stand versus budget. Peterson said staff is working on a capital schedule of year-to-date spending and will circulate a draft after the meeting. The commission approved the interim financials on a motion by Commissioner Babich, supported by Commissioner Hart.