Hastings Utility Board Regular Meeting – October 8, 2026

The Hastings Utility Board met on Thursday, October 8, 2026 at 9:00 AM in the Council Chambers of Hastings City Hall. The meeting covered electric reliability performance, lead water service and main replacement progress, results of a smart watering pilot program, and preliminary discussions on a computational load rate for data centers. The board unanimously approved the consent agenda and adjourned at 9:49 AM without entering closed session.

Consent Calendar

• Approval of minutes from the September 10, 2026 meeting: Moved by Dewalt, seconded by Rutt. Roll call vote: all five members present (Kvols, Dewalt, Meeske, Rutt, Mertens) voted aye. Motion carried.

Public Comments & Testimony

• Discrepancy noted: The official minutes record no citizen communications. However, the raw transcript contains an exchange initiated by an unidentified speaker (likely a board member or manager) who stated they were contacted by an individual asking about water usage at the generating stations—specifically whether the wells are metered and if estimates of water consumption per unit can be provided. The manager agreed to compile information and get back to the requestor. This item did not appear under formal citizen communications on the agenda or minutes.

Discussion Items

• Manager’s Communications: The manager acknowledged that October 4–10, 2026 is both Public Power Week and Public Natural Gas Week, commending utility employees for maintaining safe and reliable service.
• Utility Electric Reliability Report (J.C.): The electric department presented four key reliability indices for Hastings Utilities (HU) compared to a peer “Rate Class” of similar-sized utilities (customer count ~7,000–15,000).
  • SAIDI (System Average Interruption Duration Index): HU 5-year average of 12.92 minutes/year vs. Rate Class 38.42 minutes—meaning HU customers experience about 25.5 fewer minutes of interrupted service annually.
  • CAIDI (Customer Average Interruption Duration Index): HU 5-year average 92.17 minutes per outage; this closely matches the Rate Class benchmark. The presenter noted HU’s practice of physically driving or walking lines before re-closing breakers for safety adds time but prevents hazards.
  • SAIFI (System Average Interruption Frequency Index): HU 5-year average 0.13 outages/customer vs. Rate Class 0.47—a 46.2% reduction from 2021, with a five-year low of 0.078 in 2025.
  • ASAI (Average Service Availability Index): HU 5-year average 99.99750%—nearly 100% uninterrupted power.
  • Summary (2021–2025): HU customers experience outages 3.6 times less often than peer utilities; annual outage duration decreased approximately 51% between 2021 and 2025.
• Lead Water Service and Main Replacement – History and Progress (Brandan Lubken):
  • Prioritization drivers: Break history, size/fire flow, and lead services. Average main breaks per year: ~7.5 (1988–present). Break rate is up 50% from 2000–2025 (10-year rolling average). Oldest mains date to the late 1880s (approaching 140 years). Cast iron mains constitute 37% of the system but cause 84% of failures. Mains built 1920–1939 (9% of system) are responsible for 28% of failures; mains built 1980–present (50% of system) cause only 3% of failures.
  • Fire flow: HU has 23 miles of 4-inch water mains. National fire code requires minimum 1,500 GPM at hydrants; 4-inch mains supply only 500–1,000 GPM. Fire flow was recognized as the primary driver for main replacement.
  • Lead & Copper Rule (LCR) / Lead & Copper Rule Improvements (LCRI): Stricter penalties, lower action level (10 ppb vs. 15 ppb), expanded notification. All municipalities must remove all lead services within 10 years after the rule takes effect (November 1, 2027). About 70% of known lead services are on 4-inch mains.
  • Revised goals: Remove 100% lead services by 2037 (accelerated from 2040). Replace 1–1.5 miles of main per year currently, ramping to 1% system replacement per year by 2040. As of October 2026, HU has replaced 322 lead services and 4 miles of water main since program start. A planned two-mile project with ~150 lead services would bring completion to 30–33% before the federal mandate deadline.
  • Cost efficiency: HU’s in-house lead replacement cost is ~$4,500 per service (among the lowest in Nebraska per state SRF staff). Local contractor potholing costs $230 per pothole. For comparison: Omaha M.U.D. budgets $12,000/service, Detroit internal crews $9,300/service, Cleveland reported $1,800/pothole. HU has secured a $2 million loan (62% forgivable, 38% zero-interest 30-year loan) and received ~$1 million in forgivable reimbursements to date.
• Smart Watering Pilot Program Results (Brandan Lubken):
  • 24 smart landscape irrigation controllers were installed (12 residential, 12 on city parks properties) between May 18 and September 20, 2026.
  • Estimated water savings: 1.4 million gallons, representing a 33.5% reduction compared to the reconstructed irrigation total. Seven sites accounted for 81% of savings.
  • Peak demand management: Four targeted watering shifts were successfully executed during anticipated peak events by deferring selected controllers; no actual capacity threat occurred during the pilot.
  • Preliminary program sizing: Assuming 60% peak overlap and 90% response, approximately 120 devices (at 12 GPM each) could shave ~800 GPM off peak—equivalent to deferring one well’s capacity. Phase 2 public rollout began the week before the meeting, with 30 new devices arriving and social media outreach yielding 5–6 early signups.
• Computational Load Rate – Discussion (Derek Zeisler, Shane Stone):
  • Staff reported that Nebraska state law has changed to ensure that data centers (computational loads) cover all costs and do not shift costs to existing ratepayers. Hastings is in discussions with multiple potential data center developers.
  • A dedicated rate class for computational loads is being developed with assistance from a consultant. Key components include energy, capacity, transmission, and O&M costs that are currently embedded in general rates and must be extracted and separately allocated.
  • Advantages for Hastings: existing excess capacity, high reliability (as shown in the electric report), and a recent ordinance change requiring developers to fund upfront infrastructure improvements—protecting the utility’s cash reserves.
  • Staff plan to return at the next board meeting with a proposed rate structure for board consideration.

Key Outcomes

• Unanimous consent: Approved minutes of September 10, 2026.
• No substantive votes were taken on the discussion items; they were presented for information and board awareness.
• Directive: Staff will return next month (November 2026) with a proposed computational load rate structure for board review and potential recommendation.
• Adjournment: Motion by Meeske, seconded by Mertens. Roll call: all ayes. Meeting adjourned at 9:49 AM.