Hastings Utility Board Regular Meeting – September 10, 2026

The Hastings Utility Board held its regular meeting at 9:00 a.m. on September 10, 2026, in Council Chambers at Hastings City Hall, 615 West 3rd Street, Hastings, Nebraska. Official notice was published in the Hastings Tribune on September 8, 2026. Board members present were Scott Kvols, Jeanette Dewalt, Susan Meeske, Regg Rutt, and Pat Mertens; Larry Consbruck was absent. The meeting was called to order by Scott Kvols, who also led the Pledge of Allegiance. The board unanimously adopted the agenda, approved the prior meeting minutes, heard a public comment about a utility well, received a Q3 financial update and the FNIC insurance presentation, and entered closed session to discuss a potential real estate purchase. Manager Derek welcomed everyone to the new City Hall location, noted construction would continue because of deadlines, and said the utility is beginning to implement the recently passed rate ordinance. The meeting adjourned at 9:57 a.m.

Consent Calendar

• The board adopted the September 10, 2026 regular meeting agenda by a unanimous roll-call vote.
• The minutes of the August 13, 2026 Hastings Utility Board meeting were approved unanimously on a motion by Susan Meeske, seconded by Regg Rutt.

Public Comments & Testimony

• Willis Hunt, a farmer from 616 Madden Road, Hastings, said he observed unit number four running, the ditch full, and water running to Lake Hastings. He asked whether a meter is installed on the well that supplies unit four.
• Hunt expressed concern about water accounting in Nebraska, noting that farmers receive water allotments and face substantial fines with no appeal if they exceed them. He said water is critical for farmers and that he supports development in the Lake Hastings area.
• Manager Derek responded that the question was not on the agenda and could be discussed at a later time.

Discussion Items

Q3 Financial Update

Derek presented the Q3 financial update on behalf of JC, who was unavailable. Key points included:

• Electric Department: The planned WEC1 six-week turbine overhaul uncovered discovery items that extended beyond the initial timeframe, and the unit remains de-rated until a fall outage. The improvement in net change in financial position compared with FY2025 was primarily due to receiving $4.266 million for Solar Farm II.
• Gas Department: An extremely mild winter compared with FY2025 reduced gas revenue. The net change in financial position improved mainly because of monthly Transportation Credits of just over $1.9 million from October through June; these credits are market-driven, reported as Other Income, and represent an exceptionally unique year.
• Water Department: Significant rainfall from April through June compared with FY2025 reduced yard watering and operating revenue. As of FY2026, water, electric, and gas operating expenses no longer include the Payment in Lieu of Tax expense.
• Sewer Department: Operating revenue was lower than the prior year because of unbilled sewer usage; Derek stated that of the roughly $400,000 in unbilled usage, about $60,000 remained to be collected through agreed future payments.
• Cash position: Cash is in a good position and trending in the right direction, supported in part by the Solar Farm II receipt. The Highway 6 project, 80 percent reimbursable, has pushed some capital projects back.

FNIC Insurance Presentation

Jeff and Mark from FNIC presented the Hastings Utilities insurance renewal remotely. Points included:

• Property coverage remains with FM Global, which they described as the standard for power-generating facilities; FM Global insures roughly 20 percent of all power-generating facilities nationwide and, in FNIC's understanding, all of Hastings Utilities' Nebraska peer-group utilities.
• FM Global provides a single $450 million per-event property limit, unchanged from the expiring term. Total insured values were increased from $561 million to just under $650 million for 2026 on a replacement-cost basis, reflecting sharply higher replacement costs for power-generation assets driven by data-center demand. In response to Jeanette DeWalt, FNIC confirmed this is replacement cost, not depreciated value.
• The property renewal premium is effectively flat, with a total premium of $673,721 after TRIA (federal terrorism coverage) and credits. FNIC noted an FM membership credit of just under $169,000 and a resilience credit that increased from 5 percent to roughly 10 percent this year.
• A separate equipment floater through Chubb renews with no meaningful premium change and a $5,000 deductible.
• Excess liability is placed with Aegis, a utility-formed insurer, providing $35 million in limits above a $500,000 retention. FNIC said this policy includes specialized coverages such as pollution, failure to supply, and wildfire. The excess liability premium increased about 7 percent.
• The overall year-over-year premium increase was about 3 percent, or $38,946, compared with roughly 2.5 percent for the city program as a whole.
• Asked about cyber coverage, FNIC said Hastings Utilities' cyber liability is covered through the city of Hastings' separate cyber policy. IT staff noted they receive monthly vendor reports and scans and work with the vendor on vulnerabilities.
• The presentation was informational; no formal board action was taken. Derek indicated he believed the insurance item may go to the city council at its Monday, September 14 meeting.

Closed Session

• The board unanimously approved a motion to enter closed session at 9:34 a.m. to discuss a potential real estate purchase, citing the protection of the public interest. The board returned to open session at 9:56 a.m. and took no further action on the matter.

Key Outcomes

• Agenda adopted unanimously: Ayes - Kvols, Dewalt, Meeske, Rutt, Mertens; Nays - none.
• August 13, 2026 minutes approved unanimously: Ayes - Kvols, Dewalt, Meeske, Rutt, Mertens; Nays - none.
• Q3 financial update received; no action taken.
• FNIC insurance presentation received; no action taken.
• Closed session authorized unanimously at 9:34 a.m.; board reconvened at 9:56 a.m. with no action.
• Meeting adjourned at 9:57 a.m. by unanimous consent.