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Hibbing PUC approves 2026 budget after reviewing 2025 financials
Summary
The Hibbing Public Utilities Commission accepted monthly financials showing a $563,000 operating loss year-to-date and approved a 2026 draft operating budget with a $237,000 operating loss and $1,000,000 in nonoperating revenue for a net $840,000 positive change in net position.
The Hibbing Public Utilities Commission reviewed monthly financials and approved the utility’s 2026 operating budget at its Nov. 18 meeting.
Mr. Peterson told the commission that the 10 months ended Oct. 31 show an operating loss of $563,000, a larger loss than the same period the previous year, and that the utility’s 10-month change in net position stood at $3.8 million, ‘‘which is higher than $1,000,000 at this period last year’’ because of increased grant revenues. He highlighted KPIs shared by email, noting a debt ratio of 9.3% and a current ratio of 4.5.
On the 2026 draft budget, Mr. Peterson said the plan shows a $237,000 operating loss offset by $1,000,000 in nonoperating revenue for an estimated change in net position of about $840,000 for the year ending Dec. 31, 2026. He emphasized that the production tax credit expected for biomass is not built into the draft budget and that the budget assumptions follow the Baker Tilly rate study with rate changes assumed to take effect May 1.
Commissioners approved acceptance of the monthly financials and adopted the 2026 operating budget by voice votes recorded in the meeting.
The commission asked staff to continue reporting KPIs and to monitor production tax-credit developments, which could improve the budget if credits are awarded.
