Hibbing Public Utilities posts first positive operating income since 2019; commission approves interim financials

Hibbing Public Utilities staff reported the utility posted its first slightly positive operating income since 2019, and the commission approved interim 2024 financial statements at its Jan. 21 meeting.

General Manager Mr. Peterson told commissioners the utility recorded about $2,300,000 in total net position improvements in 2024, up from roughly $1,600,000 the prior year, and described the positive operating income as the result of multi-year efforts to stabilize operations. "A lot of work was done by everybody at the utility to create these results," Peterson said.

Peterson and staff cautioned the figures are preliminary and subject to audit adjustments. "Going into the audit with any kind of write offs of existing assets on the books, you know, that $275,000 could disappear quickly," Peterson said. He said operating income and grant revenue both contributed to the improvement and noted cold-weather heating demand in December helped revenues.

Commissioner Hart moved to approve the interim financials; the motion was supported by Commissioner Babbage and carried by voice vote.

Peterson also presented snapshot comparisons of local rates and usage: he said an average Hibbing residential electric customer (638 kWh) pays just over $100, and water costs for about 6,000 gallons a month are roughly half of Chisholm's, citing those figures to show the utility remains competitively priced. He reiterated that zero operating income would be unsustainable over time and that rates will need to be adjusted in the future.

The commission's approval covers the interim financial statements as presented and does not finalize audited results. The utility will present final audited financials after the year-end audit is complete.