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Hibbing utility approves April financials but tables proposed rate changes for more data
Summary
The Hibbing Public Utilities Commission approved April 2026 financial statements showing a $323,000 operating surplus year-to-date but tabled Baker Tilly–recommended rate changes and a purchase gas adjustment, requesting clearer dollar-impact tables and expense‑reduction analysis before taking action.
The Hibbing Public Utilities Commission approved its April 2026 financial statements on May 19 while deferring decisions on a proposed rate schedule update and a proposed purchase gas adjustment.
Tammy Matson, presenting the April operating results, said year-to-date operating revenue totaled $13.6 million versus $13.9 million in the same period last year, and year‑to‑date operating income was $323,000 compared with $2.5 million for the first four months of 2025. Matson and staff identified a roughly $1.3 million adverse variance in the gas utility—driven by both higher commodity costs and the removal of a prior-year purchase‑gas adjustment—as the primary driver of the consolidated shortfall versus budget.
The commission then reviewed recommendations from a 2025 Baker Tilly five‑year rate study, which proposed a 5.4% annual electric rate increase, a 4.5% gas rate decrease, a 3.5% steam increase and an 11.25% water increase. Staff showed sample bill impacts for an average residential electric customer (about 500 kWh) and typical commercial examples; presenters said the average electric residential impact from the recommended increase would be small in dollars per month but larger for high-usage accounts.
Several commissioners said the packet figures and the presentation charts did not match and asked staff to produce consistent, “apples‑to‑apples” dollar‑impact tables for residential and commercial customers. Commissioners also requested a commercial rate breakdown, the same baseline usage values across charts, and a clear list of possible expense‑reduction measures to accompany any rate proposal. Given those gaps, the commission moved to table the rate adjustments until staff returns with consistent comparisons and additional detail.
On the purchase gas adjustment (PGA), staff proposed spreading a $1.3 million gas variance over 12 months via a 17.8‑cent per‑CCF PGA that would automatically terminate once recovery is complete. Commissioners expressed concerns about fairness and whether gas customers would pay more than their proportional share; the commission also tabled the PGA pending the additional packet detail requested for rates.
The April financials themselves were approved by motion (mover: Commissioner Stokes; support: Commissioner Hart). Chair Bis and staff said additional reporting improvements—specifically consistent page numbering and side‑by‑side year‑over‑year and actual‑to‑budget tables—would be provided for future meetings.
What’s next: Staff will prepare consistent dollar‑impact tables and expense‑reduction options for the commission’s next action meeting; rate and PGA decisions were postponed pending that supplemental material.
