Hibbing PUC renews gas-supply agreement with Connect Energy; commissioners approve five-year term

The Hibbing Public Utilities Commission on Aug. 12 approved a service and master agreement with Connect Energy Inc. to provide natural gas procurement services. Staff said Connect has served as the utility’s gas broker since 2021 and recommended renewal. Legal counsel noted the draft contract in the packet specified venue and governing law in Miami-Dade County and Florida; counsel requested revision to Minnesota law and St. Louis County venue. Commissioners also discussed an apparent discrepancy in the contract term: the packet cover memo referenced a five-year term while the draft agreement’s dates appeared to terminate in 2028 (three years). Staff said they would correct the discrepancy and that the parties had indicated a five-year preference. Paul, a staff member, told commissioners the new form changes the fee structure from a volumetric charge to a single flat monthly fee to simplify budgeting. "The fee structure basically remains the same… the only big difference on there is we switch from a volumetric rate… as opposed to just going with a standard flat fee across every month," Paul said. Commissioner Hart moved to approve the agreement as presented; the motion received a second and passed by voice vote. Why this matters: The agreement governs how Hibbing procures natural gas and how the utility budgets for broker fees. Commissioners discussed the tradeoff between a longer contract for stability and shorter terms that would offer more frequent renegotiation. Next steps: Staff will finalize the contract language to reflect Minnesota law and the agreed term before signing. The commission authorized execution pending counsel’s final revisions.