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HomeMy WebLinkAbout2011-07-27 RMLD Board of Commissioners Minutesa Start Time of Regular Session: End Time of Regular Session: Attendees: Commissioners: Richard Hahn, Chairman Gina Snyder, Secretary Robert Soli, Commissioner Reading Municipal Light Board of Commissioners Regular Session 230 Ash Street RE- 5E I V E D Reading, MA 01867 TOWN 5 L F R K July 27, 2011 " 1 M n 7:32 p.m. 8:47 p.m. 2011 SEP — 1 A q: 32 Philip B. Pacino, Vice Chair Mary Ellen O'Neill, Commissioner Staff: Vinnie Cameron, General Manager Robert Fournier, Accounting/Business Manager Nick D'Alleva, Technical Services Manager Joseph Donahoe, Facilities Manager Patricia Mellino, Operational Assistant William Seldon, Energy Services Analyst Citizens' Advisory Board Arthur Carakatsane, Chair Tom 011ila, Member Chairman Hahn called the meeting to order and stated that the meeting of the Reading Municipal Light Department (RMLD) Board of Commissioners is being broadcast live at the RMLD's office at 230 Ash Street, Reading, MA. Live broadcasts are available only in Reading due to technology constraints. This meeting was video taped for distribution to the community television stations in North Reading, Wilmington and Lynnfield. Opening Remarks /Approval of Meeting Agenda Chairman Hahn asked the Board members present if there were suggested changes or additions to the agenda. There were none. Introductions CAB representative Tom 011ila was present. Chairman Hahn reported that this month there was a joint meeting of the Power & Rate Committee and Policy Committee. Chairman Hahn stated that the agendas were primarily the same as it was a joint meeting. Report from Board Committees Policy Committee — Report of July 21 Meeting Commissioner Soli Mr. Soli reported that there were discussions about possible policies in two areas, one was an environmental policy and the other was a policy relative to renewable energy. Mr. Soli stated that the action items were distributed to the group and the committee is expected to get back together at a later time to work on these. Power & Rate Committee — Report of July 21 Meeting — Chairman Hahn Chairman Hahn reported that the Power & Rate Committee received an update from the Energy Services Division on some potential private party solar projects to be installed within the service territory. Chairman Hahn stated that there was discussion on options for the Green Choice Program as we now have several renewable projects. No action was taken at the meeting. Approval of June 22, 2011 Board Minutes Ms. Snyder made a motion seconded by Mr. Pacino to approve the Regular Session meeting minutes of June 22, 2011 as presented. Motion carried 5:0:0. General Manager's Report— Mr. Cameron Mr. Cameron stated that Vehicle Day is on Tuesday, August 16 at the Reading Public Library from 7:30 a.m. to 9:30 a.m., the Reading Street Fair is on Sunday, September 11 and the RMLD will be represented by Jared Carpenter displaying the solar powered bike that puts power back onto the grid. IVrr Cameron reported that the newly filed streetlight rate is going into effect August 1, which will result in savings to the four towns in the RMLD's service territory. Mr. Cameron said that letters will be going out by the end of this week with each town's estimated savings. i�cruicu '3caaiuu Inuzo uig iviuiuuca July 27, 2011 Financial Highlights — June, 2011 — Mr. Fournier (Attachment 1) Mr. Fournier reported on the Financial Highlights for June 2011. Mr. Fournier reported that he is in the process of closing out the fiscal year and the annual audit will be starting on Monday, August B- and to date what he has seen in the schedules is that there are no big changes or surprises. Mr. Fournier said the final kilowatt sales ft the fiscal year are 709 million compared to last year's total of 684 million, an increase of a little less than 25 million or 3.6 %. Mr. Fournier reported ion July's preliminary numbers; Kwh sales for this month were at 67.4 million compared to last year at 72 million. Discussion followed. Power Supply Report — June, 2011— Mr. Seldon (Attachment 2) Mr. Seldon reported on the Power Supply Report for June 2011. The RMLD's total metered load for June was approximately 62,1 million kWhs, a decrease of approximately 6% compared to last June. The energy cost for that time frame was $3.2 million which is equivalent to about $.051 per kWh. In July, the Fuel Charge Adjustment (FCA) was $0.0585 per kWh. Mr. Seldon stated that prior to the fiscal year adjustments, RMLD's estimated sales totaled 58.5 million kWhs and preliminarily RMLD over collected by approximately $238,000 resulting in a deferred fuel over collection which then resulted in a $2.5 million Deferred Fuel Cash Reserve at the end of fiscal year 2011. Mr. Seldon reported that for July, the RMLD is increasing the FCA to $0.0684 per kWh and it is currently forecasted to remain at this level for August 2011 as well. Mr. Seldon reported that the RMLD purchased approximately 16% of its energy requirements in June from the ISO New England Spot Market at an average cost of $34.71 per MWh. The RMLD hit a peak of 148.4 MWs at 4 p.m. on June 9, 2011. The RMLD's monthly capacity requirement was 199.8 MWs. The RMLD paid $1.37 million for capacity, which is equivalent to $6.85 per kW- month. Mr. Seldon reported that transmission costs for July were $741,000, which is approximately a 29% increase from May 2011. In the fiscal year 2012 budget for transmission it is estimated that the RMLD will pay $9.1 million in ISO -NE transmission charges which is about 14.5% of the total Purchase Power budget. Discussion followed. Mr. Seldon stated that the added FCA cost is how we get to the estimated $2.5 million in the Deferred Fuel Cash Reserve for the end of the fiscal year. Ms. O Neill asked if a percentage column could be included in the capacity table in the Power Supply Report. Mr. Cameron replied, yes. Chairman Hahn stated that he had asked Mr. Seldon to insert the Regional Network Service (RNS) graph on the last page. Chairman Hahn reported that ISO -NE rates for RNS, which we pay, have gone up tremendously in the last five to seven years, and we have no say in it. The ISO Capacity Auctions generated a price for us of $2.80 per kilowatt month, or a little less than $35 per kilowatt year, and we are now paying $110 per kilowatt year which is nearly three times that for transmission. Chairman Hahn said do not be fooled by the apparent slow down in the growth of that number because there are a lot of constructionprojects that have been delayed and we can expect that number to continue to ramp up. Cost is peak -based so any demand - response projects that customers can do to lower the peak electricity use will benefit all customers. Discussion followed. Arthur Carakatsane, CAB Chair, entered the meeting at this time. Engineering and Operations Report — June 2011 - Mr. D'Alleva (Attachment 3) Gaw Update Mr. D'Alleva reported on the Engineering and Operations Report for July 2011. Mr. D'Alleva said that for the Gaw Project there was a total of $32,000 in expenditures for June, $28,000 for project engineering and $3,600 for RMLD labor. The job was finalized early in July and is now complete. The transfer scheme was finished the week of July -- 4; Mr. Sullivan is working on the close out process with Fischbach and Moore. Mr. D'Alleva said that there were some expenditures for the soil clean up in the amount of $5,000 and all reports have been completed to Mass DEP and US EPA. Mr. D'Alleva commented that there are still some lingering charges associated with the project. July 27, 2011 Engineering and Operations Report — June 2011- Mr. D'Alleva (Attachment 3) Gaw Update Mr. D'Alleva listed the following projects worked on during the month of June: Projects: 2, 5, 8, 9, and 11. Mr. D'Alleva stated that a?l,the projects are completed with the exception of Projects 1 and 2, noting that Project 2 will be completed by the end of July and Ject 1 will be pushed off into FY12 and will be done under routine construction due to the heat that they have experienced and not being able to move some of the load around. Mr. D'Alleva stated that about two weeks is needed to pull out the old cables and pull in the new, therefore the project will be pushed out to September. Mr. D'Alleva said that Project 33 was carried over to FY12 as planned. Mr. D'Alleva reported that there were two commercial installations and 25 residential installations for the month. In routine construction there were 22 cutouts replaced making a total of 401 for FY 2011; the original plan of 562 fell short due to the difficulty of planning outages with the residential and commercial customers. Mr. D'Alleva reported on the Reliability Report: Customer Average Interruption Duration Index (CAIDI) is at 62.54 minutes, which is up three minutes from last year, the rolling average is 49.31 minutes. The System Average Interruption Frequency Index (SAIFI) was .77, with the rolling average of .46. The rolling average was down slightly despite the storm on June 9. The Months between Interruptions (MBTI) has increase to 26 months between interruptions. Mr. D'Alleva provided an update on the reliability statistics numbers: 137 calls, 42 outages, 1,900 customers affected, one feeder outage, 29 area outages, and 12 service outages. There were no overloaded transformers for the month of June. Mr. D'Alleva reported that the running total of installed meters for the Meter Upgrade Project is about 6,800. Discussion followed. M.G.L. Chapter 30B Bid (Attachment 4) 2011 -03 Fleet Pressure Washing Ms. Snyder made a motion seconded by Mr. Pacino that bid 2012 -03 for Fleet Pressure Washing be awarded to Elite Pressure Washing for $43,290.00 as the lowest qualified and responsive bidder on the recommendation of the General Manager. (Note: This is a three year contract.) lKotion carried 5:0:0. Discussion followed. Mr. Donahoe reported that this service is usually done in the form of a request for quotation for one year but this year on May 31 it was solicited for a three year contract. The bid packet was sent out to four vendors with two responses. On June 15 the two bid amounts that came in were tied and a re -bid was requested for June 17, with a savings outcome of $9,360. Mr. Donahoe stated that pressure washing is generally for the large trucks at 39 washes per year, which comes out to approximately $20 per vehicle for the first year. Ms_ Snyder asked how this compares to the current price of this year. Mr. Donahoe replied that it is the same vendor as currently has the contract and the first year is the same price with a 5% increase over each of the next two years. General Discussion Chairman Hahn said that Mr. Soli would explain his handout. Mr. Soli stated that in the American Public Power Association (APPA) Annual Directory and Statistical Report there are retail sales in terms of kilowatt-hours and retail sales in terms of revenues throughout the country including 40 municipals in Massachusetts. Mr. Soli said that with this, one could compute the average cost per kilowatt-hour sold. Mr. Soli reported that out of the 40 municipals Reading comes in at number six, the lowest coming in at $0.1067 average and Reading at $0.1215 revenue per kilowatt hour. Mr. Soli explained that he did an analysis, so that the second chart gives the rank of rate versus rank of megawatt hours sold and basically it tries to look and see if size matters. Mr. Soli stated that size doesn't seem to play any part in rates, and size doesn't seem to x�?ake any difference. Mr. Soli said that this handout was just informational, but that RMLD looks pretty good in comparison to other iicipals in Massachusetts. July 27, 2011 Update on Massachusetts Global Warming Solutions Act - Mr. Cameron Mr. Cameron stated that in the General Manager's report he intended to report on Green Communities Act and Global Warming Solutions Act. Mr. Cameron reported that the Green Communities Act was enacted in 2009. This act provided a vehicle for towns and cities to gain technical and financial assistance from the state of Massachusetts. In order to become a "Green Community" one wouh have to do six things; file an application, provide as of right sighting for renewable and alternative energy projects, adopt- expedi permitting, establish a baseline energy use for municipal buildings, purchase fuel efficient vehicles where possible and require new residential and commercial construction standards. These communities can receive grants and get technical assistance from the state. Mr. Cameron stated that Regional Greenhouse Gas Initiative (RGGI) money funds this program. Mr. Cameron said that you also have to join the Mass Renewable Energy Trust Fund and to do this every customer is charged one half mil per kilowatt hour. Mr. Cameron stated that he has talked with the RMLD Board and the Managers of the four towns and found that Reading expressed the desire to become a Green Community. Mr. Cameron said that it is unfortunate .that the law is written such that in order for Reading to become a Green Community every consumer in the Reading Light service territory would have to pay that one half mil per kilowatt hour even though only one town desired to become a Green Community. Mr. Cameron explained that the RMLD has had a Conservation Program for several years and charges one half mil per kilowatt hour to all customers and provides not only rebates for renewable energy projects to commercial and residential customers but provides rebates for conservation energy measures. Mr. Cameron stated that the one half mil per kilowatt hour comes out to approximately $600,000 per year and while the program started off charging the commercial accounts one mil and the residential accounts one half mil they're now converged to about .6 or .7 mils per kilowatt hour. Mr. Cameron believes that the RMLD program has a better bang for the buck than the Green Communities Act based on the fact that as a Green Community you are going to be paying one half mil per kilowatt hour into this fund for the sales and charge the customer with no guarantee of getting the money back, when you have to apply to the Mass Renewable Energy Trust Fund to get those dollars back to fund renewable energy projects Mr. Cameron reported on the Regional Greenhouse Gas Initiative that is going on in Massachusetts and ten other eastern states from Maryland up to Maine. Mr. Cameron said that over the last few years the RGGI cap and trade program has been in affect for utilities and businesses that need allowances for greenhouse gas emissions which they pay money for to offset their greenhouse gas emissions. Mr. Cameron stated that this money is given to the Investor Owned Utilities (IOU's) right now in those states including Massachusetts and the municipals do not get any of that money. Mr. Cameron said that the Municipal Energy Association of Massachusetts (MEAM) uses a lobbyist to try to get the law changed so the municipals can get a portion of that money to fund their energy conservation programs. Mr. Cameron reported on the Global Warming Solutions Act which was passed into Massachusetts General Law in 2008. This law requires the Executive Office of Energy and Environmental Affairs ( EOEEA) to set different greenhouse gas emission reduction goals and right now they put goals between ten to 25% lower emissions, below the statewide 1990 greenhouse gas emissions by 2020 and 80% lower by 2050. Mr. Cameron stated that the EOEEA has also established regulations requiring reporting greenhouse gas emissions by the Commonwealth's largest resources and that through the Energy Services Department the RMLD has been reporting emissions by fuel type for the past two years. Mr. Cameron said that in order for the EOEEA to set a future reduction schedule they had to establish a statewide greenhouse, gas emissions baseline for 1990. Discussion ensued. Mr. Pacino provided an update on hearings that are underway to determine whether or not the International Accounting Standards should be adopted. If this is done, it is likely to change the way FERC organizes its accounts and it is likely that this will trickle down to the states also. Mr. Pacino said any change in accounting standards is two or three years out. Chairman Hahn thanked him for the report and noted that we should keep informed about this. Mr. Pacino said that recently there was a fundraiser for CAB member John Norton, to help him cover surgery costs. This was organized by Mr. Pacino's sister -in -law. The fundraiser is still in progress and contributions to the Friends of John Norton are still very much welcomed. Mr. Pacino may be contacted for details. Chairman Hahn thanked Mr. Pacino for informing everyone. Mr. Carakatsane stated that he would like to commend John who is a very proud man who is still persevering not missing a beat with the CAB and volunteer work. 1 \GYV UIR3 UGJJ1V111V1GG1111� 1V1111U1GJ July 27, 2011 General Discussion Chairman Hahn stated that John was a volunteer throughout North Reading not just as a CAB member. 0hairman Hahn asked if there were any other items under General Discussion, there were none. Chairman Hahn said that some of the Commissioners would be attending the NEPPA Conference August 21 -23. BOARD MATERIAL AVAILABLE BUT NOT DISCUSSED Rate Comparisons, July 2011 E -Mail responses to Account Payable/Payroll Questions Upcoming Meetings RMLD Board Meetings Wednesday, August 31, 2011— Ms. Snyder said that she would not be in attendance at this meeting. Wednesday, September 28, 2011 Executive Session At 8:26 p.m. Ms. Snyder made a motion seconded by Mr. Pacino that the Board go. into Executive Session to approve Executive Session meeting minutes of June 22, 2011, to discuss Duncan & Allen, MMWEC Arbitration and return to Regular Session for adjournment. Ms. Snyder, Aye; Mr. Pacino, Aye; Ms. O'Neill, Aye; and Chairman Hahn, Aye. Motion carried 4:0:1. Mr. Soli abstained. Adjournment At 8:47 p.m. Ms. Snyder made a motion seconded by Mr. Pacino to adjourn the Regular Session. Motion carried 5:0:0. A true copy of the RMLD Board of Commissioners minutes as approved by a majority of the Commission. Gina Snyder, Secretary RMLD Board of Commissioners Dt: July 27, 2011 S To: RMLB, Vincent F. Cameron, Jr., Jeanne Foti Fr: Bob Fournier Sj: June 2011 Memo $� Attachment 1 The 2011 fiscal year end figures are still being finalized. The audit will begin on Monday, August 8. I will have pre -audit figures during that first week in August. Kwh sales are 709,200,000, an increase of 24,800,000 or 3.6 %, compared to last year's total of 684,400,000. Attachment 2 To: Vincent Cameron From: Energy Services Date: July 20, 2011 Subject: Purchase Power Summary — June, 2011 Energy Services Division (ESD) has completed the Purchase Power Summary for the month of June, 2011. ENERGY The RMLD's total metered load for the month was 62,125,816 kWh, which was a decrease of 5.95 % compared to June, 2010 figures. Table 1 is a breakdown by source of the energy purchases. TABLE 1 % of Amount of Cost of Total Total $ $ as a Resource Energy Energy Energy Costs % (kWh) ($ /Mwh) Millstone #3 3,567,788 $5.54 5.73% $19,763 0.62% Seabrook 5,484,159 $8.86 8.81% $48,589 1.53% JP Morgan 6,680,000 $56.82 10.74% $379,552 11.92% Stonybrook CC 2,028,907 $56.53 3.26% $114,692 3.60% Constellation 7,200,000 $62.39 11.57% $449,177 14.10% NYPA 1,543,363 $4.92 2.48% $7,593 0.24% ISO interchange 9,833,930 $34.71 15.80% $341,363 10.72% NEMA Congestion 0 $0.00 0.00% - $4,826 -0.15% Coop Resales 85,733 $131.95 0.14% $11,313 0.36% Stonybrook Peaking 8,197 $7.18 0.01% $59 0.00% MacQuarie 23,640,000 $67.20 37.99% $1,588,557 49.87% Braintree Watson Unit 337,756 $167.31 0.54% $56,510 1.77% Swift River Projects 1,811,997 $95.44 2.91% $172,935 5.43% Monthly Total 62,221,830 $51.19 100.00% $3,185,277 100.00% Table 2 breaks down the ISO interchange between the DA LMP Settlement and the RT Net Energy for month of June, 2011. CAPACITY The RMLD hit a demand of 148,391 kWs, which occurred on June 9, 2011 at 4 pm. The RMLD's monthly UCAP requirement for June, 2011 was 199,846 kWs. Table 3 shows the sources of capacity that the RMLD utilized to meet its requirement. Table 2 Amount Cost % of Total Resource of Energy of Energy Energy month) (kWh) ($ /Mwh) Millstone #3 ISO DA LMP* 11,946,737 36.93 19.20% Settlement 7,910 $56.48 $446,772 RT Net Energy ** - 2,112,806 -41.50 -3.40% Settlement 3.58% Stonybrook CC 42,925 ISO Interchange 9,833,930 34.71 15.80% (subtotal) $2.96 $11,896 0.87% CAPACITY The RMLD hit a demand of 148,391 kWs, which occurred on June 9, 2011 at 4 pm. The RMLD's monthly UCAP requirement for June, 2011 was 199,846 kWs. Table 3 shows the sources of capacity that the RMLD utilized to meet its requirement. * *RT Net Energy: Real -Time Net Energy *ISO DA LMP: Independent System Operator Day -Ahead Locational Marginal Price Table 3 Amount Cost ($ /kW- Total % of Total Source (kWs) month) Cost $ Cost Millstone #3 4,991 $62.12 $310,048 22.64% Seabrook 7,910 $56.48 $446,772 32.62% Stonybrook Peaking 24,981 $1.96 $49,071 3.58% Stonybrook CC 42,925 $3.22 $138,183 10.09% NYPA 4,666 $2.96 $11,896 0.87% Hydro Quebec 4,274 $5.19 $22,184 1.62% ISO -NE Supply Auction 99,579 $2.81 $279,871 20.44% Braintree Watson Unit 10,520 $10.60 $111,536 8.14% Total 199,846 $6.85 $1,369,561 100.00% * *RT Net Energy: Real -Time Net Energy *ISO DA LMP: Independent System Operator Day -Ahead Locational Marginal Price Table 4 shows the total dollar amounts for energy and capacity per source Table 5 Current Month Table 4 LastYear Peak Demand (kW) Resource Energy Capacity Total cost % of Total Cost Millstone #3 $19,763 $310,048 $329,812 7.24% Seabrook $48,589 - $446,772 $495,361 10.88% Stonybrook CC $114,692 $138,183 $252,874 5.55% Hydro Quebec $0 $22,184 $22,184 0.49% Constellation $449,177 $0 $449,177 9.86% NYPA $7,593 $11,896 $19,489 0.43% ISO Interchange $341,363 $279,871 $621,235 13.64% NEMA Congestion - $4,826 $0 - $4,826 -0.11% Coop Resales $11,313 $0 $11,313 0.25% Stonybrook Peaking $59 $49,071 $49,130 1.08% JP Morgan $379,552 $0 $379,552 8.33% MacQuarie $1,588,557 $0 $1,588,557 34.88% Braintree Watson Unit $56,510 $111,536 $168,046 3.69% Swift River Projects $172,935 $0 $172,935 3.80% Monthly Total $3,185,277 $1,369,561 $4,554,838 100.00% TRANSMISSION The RMLD's total transmission costs for the month of June, 2011 are $741,331. This is an increase of 29% from the May 2011 cost of $574,627. In 2010, the transmission costs for the month of June, 2010 were $862,371. Table 5 shows the current month vs. last month and last year (June, 2010). Table 5 Current Month Last Month LastYear Peak Demand (kW) 148,391 121,532 152,014 Energy (kWh) 62,221,830 57,739,678 66,124,535 Energy ($) $3,185,277 $3,015,862 $3,623,804 Capacity ($) $1,369,561 $1,524,643 $1,541,207 Transmission ($) $741,331 $574,627 $862,371 Total $5,296,169 $5,115,132 $6,027,381 Regional Network Service (RNS) TRANSNIISSION Below is a graph which shows the actual Regional Network Service (RNS) transmission rate in $ /kW -year for 2007 through 2010 and the forecasted values for 2011 through 2014. In FY 2007, the RMLD paid a total of $3.72 million dollars in transmission payments. It is currently estimated that in FYI 1, RMLD will pay a total of $9.01 million. 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Lid Q I- r a� o� co 00 (6 co LO ti O +.0 O .6 ,� = O U) F V V L L C. a.. 7/20/2011 2:53 PM READING MUNICIPAL LIGHT DEPARTMENT FY 11 CAPITAL BUDGET VARIANCE REPORT FOR PERIOD ENDING JUNE 30, 2011 TOTAL FY 11 CAPITAL PROJECT EXPENDITURES 303,691 4,342,970 5,605,581 1.262,611 *` completed projects ACTUAL YTD ACTUAL ANNUAL COST COST BUDGET # PROJECT DESCRIPTION TOWN JUNE THRU 6130/11 AMOUNT VARIANCE E &O Construction - System Projects 1 4W14 Reconductoring - West Street W 81,980 234,470 152,490 2 4W14 Extension - Woburn Street W 30,664 67,556 157,958 90,402 *" 3 Station #4 Getaway 4W17 Replacements (FY10 Budget) R 157,877 169,928 12,051 ** 4 Boutwell Street W 96,215 125,955 29,740 * 5 Chestnut Street W 4,333 127,852 171,933 44,081 *' 6 Haverhill Street - Reconductoring (FYI 0 Budget) R 102,718 100,534 (2,184) ** 7 URD Completions- Perkins Farm - Lynnfield NR, L 45,068 72,484 27,416 and Chestnut Village, North Reading (FYI 0 Budget) ** 8 Salem St.to Glen Rd. 13kV Feeder Tie (FYI 0 Budget) W 11,531 11,334 (197) ** 22 Wilmington - Main Street (FYI 0 Budget) W 30,834 34,975 4,141 33 4W4 Reconductoring (formerly Project 3) W 103,315 103,315 ** 36 3W8 Salem Street & Baystate Road (formerly Project 6) R 6,168 182,835 207,439 24,604 ** 37 Elm Street (Formerly Project 7) NR 155,262 132,011 (23,251) Station Upgrades Station #4 ** 38 11 5k Insulator Replacement (formerly Project 8) R 68,058 144,323 76,265 *" 9 11 5k Disconnect Replacement R 4,304 11,320 87,975 76,655 11 Transformer Replacement Part 1 - Contractual Labor R 28,576 368,811 545,500 176,689 Part 2 - Procured Equipment R 7,162 30,000 22,838 Part 3 - RMLD Labor R 3,600 108,184 64,324 (43,860) Part 4 - Feeder Re- Assignment R 47,627 236,034 188,407 Station #5 "* 23 15kV Circuit Breaker Replacement (Carryover FYI Bud) W 125,552 158,731 33,179 New Customer Service Connections 12 Service Installations - Commercial /Industrial Customers ALL 12,474 62,925 55,055 (7,870) 13 Service Installations 01H & U/G - Residential Customers ALL 17,926 204,111 200,345 (3,766) 14 Routine Construction Various Routine Construction ALL 93,414 1,032,048 982,565 (49,483) Total Construction Projects 3,095,525 201,459 4,027,188 931,662 Other Proiects 15 GIS 16,438 20,000 3,562 16 Transformers /Capacitors Annual Purchases 281,715 190,167 (91,548) 17 Meter Annual Purchases 98,907 353,504 765,875 412,371 18 Purchase Two New Small Vehicles 57,136 64,000 6,864 19 Replace Line Department Vehicles 349,279 360,000 10,721 20 Purchase Pole Trailer 14,919 15,000 81 21 Upgrade Lighting Stockroom and Meter Room 3,798 22,400 18,602 24 Enlarge Parking Area and Construct Island 10,775 10,775 27 Hardware Upgrades 9,152 33,700 24,548 28 Software and Licensing 23,354 96,476 73,122 29 Chiller Replacement 3,325 138,150 - (138,150) Total Other Projects 1,247,445 102,232 1,578,393 330,948 TOTAL RMLD CAPITAL PROJECT EXPENDITURES 303,691 4,342,970 5,605,581 1,262,611 29 Force Account / Reimbursable Projects ALL - - - - TOTAL FY 11 CAPITAL PROJECT EXPENDITURES 303,691 4,342,970 5,605,581 1.262,611 *` completed projects Reading Municipal Light Department Engineering and Operations Monthly Report June, 2011 FY 2011 Capital Plan E &O Construction - System Projects 1. 4W14 Reconductoring - West Street - Wilmington - Project on hold due to heat. 2. 4W14 Extension - Woburn Street - Wilmington - Install switches, transfer circuit; replace pole; install primary, transfers, energize primary, install `P" line; install gang operated switch. 3. Station #4 Getaway 4W17 Replacements - Reading (FY10 Budget) - Project complete 4. Boutwell Street - Wilmington - Project complete. 5. Chestnut Street - Wilmington - Project complete. Final pole transfer and new cut out installed. 6. Haverhill Street - Reading - Reconductoring - (FY10 Budget) - Project complete. 7. URD Completions - Project complete. 8. Salem Street to Glen Road 13 kV Feeder Tie - Wilmington - (FY10 Budget) — Project complete. 22. Wilmington -Main Street (FY 10 Budget) -Project complete. 33. 4W4 Reconductoring - Wilmington - No activity. 36. 3W8 Salem & Bay State Road - Reading - Project complete. Engineering labor; reinstalled capacitor bank; pole transfers. 37. Elm Street - North Reading - Project complete. Substation Upgrade Projects 38. 115kV Insulator Replacement Station 4 - Reading - Project complete. 9. 115kV Disconnect Replacement - Station 4 - Reading - Project complete. Senior Tech and Line Crew labor. 1 11. Transformer Replacement— Station 4 —Reading: Part 1 — Contractual Labor PLM Electric Power Engineering invoice paid. Part 2 — Procured Equipment — Part 3 — RMLD Labor — Senior Tech labor Part 4 — Feeder Re- Assignment — 23. 15kV Circuit Breaker Replacement — Project complete. New Customer Service Connections 12. Service Installations — Commercial /Industrial Customers — This item includes new service connections, upgrades, and service replacements for the commercial and industrial customers. This represents the time and materials associated with the replacement of an existing or installation of a new overhead service, the connection of an underground service, etc. This does not include the time and materials associated with pole replacements /installations, transformer replacement/installations, primary or secondary cable replacement/installations etc. This portion of the project comes under routine construction. Note: Commercial services included 100 and 400 Research Drive, Wilmington. 13. Service Installations — Residential Customers — This item includes new or upgraded overhead and underground services, temporary overhead services, and large underground development. 14. Routine Construction — The drivers of the Routine Construction budget category YTD are listed. This is not an inclusive list of all items within this category. Note: These numbers are preliminary. Pole Setting/Transfers $245,498 Maintenance Overhead /Underground $393,870 Projects Assigned as Required $54,978 Pole Damage (includes knockdowns) some reimbursable $67,422 Station Group $10,900 Hazmat/Oil Spills $0 Porcelain Cutout Replacement Program $28,990 Li htin Street Light Connections $40,208 Storm Trouble $13,922 Underground Subdivisions $54,470 Animal Guard Installation $8,020 Miscellaneous Capital Costs $113,770 TOTAL $1,032,048 *In the month of June, three cutouts were charged under this program. Approximately 19 cutouts were installed new or replaced because of damage making a total of 22 cutouts replaced this month. IQ Reliability Report Two key industry standard metrics have been identified to enable the RMLD to measure and track system reliability. A rolling 12 -month view is being used for the purposes of this report. Customer Average Interruption Duration Index (CAIDI) — Measures how quickly the RMLD restores power to customers when their power goes out. CAIDI = Total of Customer Interruption Duration for the Month in Minutes/ Total number of customers interrupted. RMLD 12 month system average outage duration — 49.31 minutes RMLD 4 year average outage (2006 -2009) — 50.98 minutes per outage On average, RMLD customers that experience an outage are restored in 49.31 minutes. 80.00 70.66 y 70.00 -- 62.54 60.00 52.59 4) 50.00 tv 40.00 O L m 30.00 E 2 .2 O 1 w 20.00 V 10.00 0.00 N ^O O p O ¢, ^O �^1 '0'I^ � N ANN ,ANN SO �J 3 System Average Interruption Frequency (SAIFI) — Measures how many outages each customer experiences per year on average. SAIFI = Total number of customer's interrupted / Total number of customers. RMLD 12 month system average - .46 outages per year RMLD 4 year average outage frequency - .82 The graph below tracks the month -by -month SAIFI performance. 1.20 1.13 1.00 _ 0.7 10 0.80 0.70 0 0.60 0 4 0 c %35 a- 0.40 i U- 0 20 0. 0.20 0. 1 0.00 NN or T Months Between Interruptions (MBTI) Another view of the SAIFI data is the number of months Reading customers have no interruptions. At this time, the average RMLD customer experiences an outage every 26 months. FA RMLD June 20, 2011 Reading Municipal Light Department RELIABLE POWER FOR GENERATIONS 230 Ash Street P.O. Box 150 Reading, MA 01867 -0250 Tel: (781) 9441340 Fax: (781) 942 -2409 Web: wwwmnld.com Town of Reading Municipal Light Board Subject: Fleet Pressure Washing On May 31, 2011 a bid invitation was placed as a legal notice in the Reading Chronicle requesting proposals for Fleet Pressure Washing for the Reading Municipal Light Department. An invitation to bid was mailed or e- mailed to the following: Amazing Auto Detailing Mobile Services Insta -Brite Mobile Washing, Inc. Clean N' Brite Mobile Wash . Elite Pressure Washing Services, Inc. Bids were received from Elite 'Pressure Washing and Clean N' Brite Mobile Wash Services, Inc. The bids were publicly opened and read aloud at 12:00 p.m. June 17, 2011 in the Town of Reading Municipal Light Department's Audio Visual Spurr Room, 230 Ash Street, Reading, Massachusetts. ae bids were reviewed, analyzed and evaluated by the General Manager and the staff. Move that bid 2012 -03 for Fleet Pressure Washing be awarded to: Elite Pressure Washing for $43,290.00 Item 1 Fleet Pressure Washing $43,290.00 as the lowest qualified and responsive,bidder on the recommendation of the General Manager. This is a three year contract. The FY 2012 Operating Budget amount for this item is $14,700.00. gincentF. C eron, Jr. J se J. Donahoe •'` N O ° 0 ° 0 OD C\l Lid I- Liz LO O p O O CO 0) C m O ° 0 O ° 0 � LO O) N CO N IL cn w 0 C) 0 0 0 0 0 o 0 0 0 0 a °' r- N O O ) �°- ° CV - p o ° � p LO ° � � . 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L0 O G h• ti et L L L V L 0 Lim O O ti O d' O N � N O M > > O O rte" N N O N � �o � M Q > 0 tz V T T ® O M_ N W � T J U) _ CL �✓ a O O 0 LO r L a� L CL 0 F- N O N x m Q O _ s O � a� a) 0 _N C14 N L L ca L 0 ca 0 la O O O O N M r co N O O N p M N O O ti O d' O N � N O M > > O O rte" N N O N � �o � M Q > 0 tz V T T ® O M_ N W � T J U) _ CL �✓ a O O 0 LO r L a� L CL 0 F- N O N x m Q O _ s O � a� a) 0 _N C14 N L L ca L 0 ca 0 la ((/ C5 ci \/( � � \\ \\K \ \% ci }($ _&, \ \/\ \ \\ OR \\\ \\\ §$4 \ 77/ 7/; ) w o I }\c ( � \` 2 }\) '| }\Z6 � §�(k . $§EG \$kI = �zf §§k � \ {\ \\ /( §§ §k■ -` It ci E CD \/ /\( ((/ C5 ci \/( � � \\ \\K \ \% ci }($ _&, \ \/\ \ \\ OR \\\ \\\ §$4 \ 77/ 7/; ) w o I }\c ( � \` 2 }\) '| }\Z6 � §�(k . $§EG Jeanne Fob From: Vincent Cameron Sent: Wednesday, June 22, 2011 10:12 AM - -' To: Richard Hahn; Phil Pacino; Gina Snyder; Mary Ellen O'Neill; Bob Soli Cc: Bob Fournier; Kevin Sullivan; Joe Donahoe; Lee Ann Fratoni; Jeanne Foti Subject: FW: Account Payable Removal and Payroll - June 17 Snyder 1. Asplundh - Why two bill #'s 001973740, 001973781 for same wk? The second bill was sent because of a mix up in the Aspiundh office. The detail bill for the week was 001- 973740 The 001 - 973781 was a duplicate bill for the same work sent by Asplundh and was included in the payables. Both bills are for the same work. 2. Coolersmart - Why all these old bills? Haven't we been paying for water - I recall some water cooler bills from previous warrants - please clarify details. These bills are for changing the Charcoal filters in the Coolersmart units. The bills you saw in the past are for rentals of the unit. In the past we have asked them to keep their billing up to date. 3. Cushing, Jamallo, Wheeler - Please provide copies of bills for reports on this contract. 1 can pick them up on Wednesday or next weekend. I assume the by "contract "' you mean the Gaw Soil remediation project. This was n not a separate contract. The RMLD's contract for LSP services was done in 2009 and includes this type of work. The amount of bills, including back up is voluminous. I wily put all the FY11 bills for CJW related to the Gaw Project on the conference table and you can view them. Please tab what you need copies of. 4. Reading DPW - How does the PO work when RMLD purchases fuel? Shouldn't there be an up -front estimate in the system? We have an estimate in the budget for fuel for the year. There is not an upfront estimate because the Town of Reading does not know the exact price of either the diesel of regular fuel and we also don't know how much fuel trucks and vehicles are going to use during the any month for the RMLD, police, fire, and DPW. O'Neill 1. Cushing, Jamallo & Wheeler - There is a bid for LSP services that the Board approved. Is this a separate contract? Was this bid and if so, what is bid number (should be on PO)? The last bid awarded to Cushing Jammallo & Wheeler was - IFB 2009 -40 LSP Services and covers all LSP services needed by the RMLD including the Gaw Soil remediation . The Gaw soil remediation was not a separate contract. 2. Smith - PO not signed for conference registration. Signed. O'Neill - Payroll 1. My question from last week has not been responded to. At appears in your e-mail this morning that your unanswered question is the following from.the May 20, 6/22/2011 2011 Account Payable Questions; Meter Upgrade Project - Is the residential portion being done on overtime in addition, to regular time? If yes, Why? My response was. - The Meter Upgrade Project was initially planned to be performed by RMLD employees on both on straight time and overtime. The straight time loaded rate for an RMLD employee is 1.578 times the employee pay rate. The overtime rate is 1.5 times the employees pay rate. My further explanation is that large portion of the Meter Upgrade Project is for the upgrading the residential meters. As I stated above, the Meter Upgrade project was scheduled to be done by the Senior Meter Techs (2) and the Meter Tech Readers (2) during both straight time and overtime over a two and a half year period. Both the Senior Meter Techs and the Meter Tech Readers have their own work to do during regular hours, therefore, not all meter replacements can be done during the regular work week. There are over 25,000 meters to be replaced. If I did not plan for overtime to complete this project, it would probably be extended at least another year, which I did not want. The RMLD could have hired an outside firm to provide personnel to assist in this effort but I did not feel that it was economically viable. The RMLD's employees know the service territory where as an outside firm would require additional management and oversight deploying contractors in the field. I also was not comfortable giving an outside firm the responsibility of the high level of record keeping involved in this effort. Every meter that is changed out needs to be cataloged correctly and kept in storage for six months per the. MDPU requirements. The new meters also have to be cataloged so that they are properly recorded and input to the RMLD's database. I am also sensitive to the fact that meter change outs require workers to enter private property. I am comfortable having RMLD employees on private property performing the change outs. Please let me know if you need more information on this subject. Jeanne Foti. Executive Assistant Reading Municipal Light Department 781 -942 -6434 Phone 781 - 942 -2409 Fax !Tease consider the environment before printing this e -mail. 6/22/2011 Jeanne Foti From: Vincent Cameron Sent: Tuesday, June 28, 2011 1:42 PM 'o: Richard Hahn; Phil Pacino; Gina Snyder; Mary Ellen O'Neill; Bob Soli Cc: Bob Fournier; Joe Donahoe; Jane Parenteau; Lee Ann Fratoni; Jeanne Foti Subject: Account Payable Removal - June 24 Snyder 1. DNS Alpha Mechanical - Could you clarify what work has been done by this company and why not under a single PO for the whole job? There has been a moderate amount of activity by Alpha Mechanical to get the chillers working since the new cooling towers have been installed. There has been some emergency work for leaks, instrumentation has been moved to different locations to satisfy the chiller logistics, and some scaling issues within the chillers. This work is not under one project number and is recorded on regs. and POs as the work is needed. 2. Doble Engineering - Please flag any results that are positive for PCBs. I will. 3. Microdesk - What is Iron Speed + how does it relate to the GIS contract + prior GIS training? Iron Speed is a rapid application development software. It supports the Outage Management Systems (OMS) and Utility Authorization Number (UAN) programs. It is envisioned that the OMS will be integrated with the GIS in the future. 1'Neill 1. Sustainable Life Solutions -It doesn't make a lot of sense tome to create all this paperwork for a $10 (1 unit) drawdown on a $5K PO. Can't we come up with another approach? The request of reimbursement for the rebates for the power strips come in from time to time. I encourage consolidating the paperwork, but I don't want to hold onto payments to save paper because SLS expects the payment on a timely basis. 2. Wesco - Is there a way of consolidating these inventory purchases, e.g., two types of hammers, quantity of two each @ $25 and $30 each with separate PO's + invoices? I will look into seeing if we can consolidate on our end. What is done on WESCO 's end is endemic to their billing system. 6/28/2011 Jeanne Foti From: Vincent Cameron Sent: Tuesday, July 12, 2011 1:54 PM To: Richard Hahn; Phil Pacino; Gina Snyder; Mary Ellen O'Neill; Bob Soli Cc: Bob Fournier; Kevin Sullivan; Lee Ann Fratoni; Jeanne Foti Subject: Answer to Payables 7 -9 -11 Soii 1. ENE - What's this? This is a bill from Energy New England for work they did on behalf of RMLD in a proposed power supply deal that the RMLD did not enter into. The RMLD presented this deal to the Power & Rate Committee in May, 2011. There were several other entities also interested in the power deal. ENE did some up front work on this project and the RMLD is reimbursing them for their efforts. Snyder 1. Allied Waste - What was the excess disposal? The RMLD is allowed 3.8 tons per month in waste. in June the amount was 1.34 tons over that amount and was charged for the excess. 2. Fischbach and Moore - June (sic) 6110/11 WA 11 -178. What was the cause for taking the capacitor banks off line at "various locations ". Some capacitor banks were taken off -line because they were not needed for voltage support in the areas of Industrial Way (W), River Park (NR), and West Street (R). O'Neill 1. Allied Waste - No PO attached. It is now attached. 7/12/2011 Jeanne Fob From: Vincent Cameron Sent: Tuesday, July 12, 2011 1:58 PM "To: Jeanne Foti Subject: FW: Account Payable - July 3 From: Vincent Cameron Sent: Monday, July 11, 20112:20 PM To: Richard Hahn; Phil Pacino; Gina Snyder; Mary Ellen O'Neill; Bob Soli Cc: Bob Fournier; Lee Ann Fratoni; Steve Kazanjian; Jane Parenteau Subject: FW: Account Payable - July 3 Snyder 1. Century Bank - Can you explain the columns on the bill - esp. the rejects? It appears the balance is over $60,000 but we are sending a wire transfer for $3370.91. The first column shows the contractual banking fees ($517.40). Column 2 is the merchant fees for credit cards services ($2,753.51). Column 3 is rejected payments, and includes on a payment of $28,134.97, which was actually was found to be a good payment after investigation. Column 4 is for monthly processing ($100). Interest is what is earned on the account. Column 5 is the RMLD deposits into the account for payment to Sage. Column 6 is the total of all deposits. The Total column is the net amount of all columns. This is a new vendor that handles the RMLD credit card processing and is expected to be less expensive than the previous credit card processing vendor. Ad King - What are the sand pails for? Promo links to what? The sand pails are for the educational /informational events the RMLD attends (Friends and Family Day) or runs (tours of the RMLD facility for schools and other organizations). 3. Hudson River - What is the PTF Revenue Requirement? The Pooled Transmission Facility (PTF) Revenue Requirement is the annual estimated cost to operate the transmission system in New England. O'Neill 1. A +B Trailer Repair - PO is dated 9/24110, invoice 6/20/11, but there is no date on invoice re: when work was actually performed. The estimate for the trailer was from last September. The work was done October, 2010. The RMLD asked several times for an invoice but the company had internal reasons for not invoicing the RMLD until recently. 2. Covino Environmental Associates - Same comment as above, PO dated 2/24/11, invoice dated 6120/11, no date of service for when worked performed. The work was performed between February 24 and May 2, 2011 3. Riemetis - GM signature needed on 9th invoice. ,Done. 7/12/2011 _Z:b - _ -- .-. 4. Tyndale -Why are orders being placed in June on a PO that was closed 5/31? What was bid amount approved by Board in Feb. 2010 and what is total paid on PO? Items that were listed on invoice were all purchased in the month of May, so an expired purchase order was not used. Bid amount approved was for approximatiey $40k over the life of the 3 -year contract. Amount spent on old purchase order was $12,001. 7/12/2011 Page 1 of 2 Jeanne Fob From: Vincent Cameron Sent: Wednesday, July 20, 2011 10:11 AM To: Richard Hahn; Phil Pacino; Gina Snyder; Mary Ellen O'Neill; Bob Soli Cc: Bob Fournier; Beth Ellen Antonio; Lee Ann Fratoni; Jeanne Foti Subject: Account Payable - July 18 Soli 1. Cadwalader - What's (Who's) this? At the June 22, 2010 RMLD Board Executive meeting I gave the RMLD Board an update on the MMWEC Arbitration. During this update I explained that Rubin and Rudman requested that Cadwalader perform some work for preparations for the depositions. This is the RMLD portion of the bill for that work. 2. Lexis - What's this? Lexis Nexis is a computer search engine that is used by Customer Service to research necessary information. 3. PUMIC - What have we learned? I don't understand your question. Snyder ERequestor - What is this system? This is the paperless computer program that handles the requisition process. 2. Roffi - Could you explain what the policy is? Is it the same as the town's policy? The RMLD Sick Time Buy Back is according to RMLD Policy 7 and the union contracts. Each employee signs a beneficiary form, instructing the RMLD to pay this benefit to a person in the event of death. I don't know the specifics of the Town of Reading's Sick Time Buy Back program. 3. Survalent - It seems a little unusual to pay for 5 years up front are we protected if they go out of business? This was brought to Town Meeting and the RMLD Board during the last half of 2010. Under municipal law the RMLD can only sign contracts for three years unless we get approval from Town Meeting and the RMLD Board. Survalent offered the RMLD a 25% discount (about $12,750) if we signed a five -year maintenance agreement. The RMLD went to the Subsequent Town Meeting last fall and received permission and then went to the RMLD Board and they accepted the contract at the December meeting. 4. Taylor - Why 2 stations? + Where are they? To get a better idea of the weather conditions in the RMLD service territory. Reading and Boston. 5. Thrive - What was the quote process for this PO? `'l/e went out for three quotes since it was under $25,000. 7/20/2011 rage L of L 6. CDM - I would like an explanation + presentation on GIS. I will contact Chairman Hahn to put it on the agenda for a future meeting. O'Neill 1. Reading Lumber - Why are we not paying PO amount - no note on PO that only one item received. Only one item was picked up. I will note on PO. Payroll IsIm -1f 1. Wyman - Why is this employee considered "retired ". I didn't think she worked here long enough for that designation. Wyman left the employ of the RMLD. She was listed with two other employees that also left and happened to have retired. 2. Carpenter - Does the tuition reimbursement policy allow for the reimbursement of tuition through fringe benefits? Have we established a semester or annual limit for such reimbursement? Do we have a "must work for X amount of time" provision for employees who receive tuition reimbursement? Reimbursement through fringe benefits is a tax issue. RMLD Policy 17 states that "RMLD will reimburse for no more than 6 courses per calendar year. Any circumstances, which require more, will need special approval of the Human Resources Manager and the General Manager." Policy 17 also states "An employee leaving the RMLD within 1 year of completing a course after receiving reimbursement will lose the 10% holdback." This holdback applies to employees attaining their required degree and not employees taking graduate courses. 7/20/2011 Rate Rank Municipality MMVVSC 2 Concord 3 Shrewsbucry 4 Peabody 5 Littleton 6 Holyoke 7 Reading 8 Boylston 9 - Hudson 10 Ipswich 11 Templeton 12 Ashburnham 13 Welleslev 14 Groton 15 Westfield 16 Danvers 17 Rowley .18 South Hadley 19 Chester 20 Hull 21 North Attleborough 22 Chicopee 23 Vest Boylston 24 iM iddlestoa 25 Norwood. 26 Marblehead 27 Mansfield 28 Paxton .29 Fussell 30 Groveland 31 Holden 32 Merrimac 33 Hingham 34 Wakefield 35 Taunton 36 Sterling 37 Braintree 38 Middleborough 39 Georgetown 40 - Belmont 41 Princeton Avgg Wt Min Median Av -. Rate, Retail 0/kWh Mwh sold 9.843 2,929,49-7 10.671 177,998 11.287 291,365 11.321 4805M 11384 263,409 11.792 340,082 12.153 671,489 12.204 29,171 12.407 387,467 12.835 106,297 12.884 60,507 12.886 33;059 12.908 235,923 12.914 68,825 12.950 366,499 13.116 314,973 13.138 40,075 13.140 114,911 13.239 5,363 13.330 49,715 13399 220,594 13.531 435,160 13.624 55,000 13.866 95,946 13.912 320,598 14.288 101,459 14.468 216,158 14540 21,920 14.746 4,635 14.787 34,651 14.906 95,874 15.067 27,450 15.099 182,600 15.106 184,032 15.586 663 ,337 15.837 55 ,351 16.172 362,536 16.480 243,832 16.531 47,455 18.404 123,642 20.171 14,957 13.827 20.171 9.843 13.399 Revenues $, millions 288.246 18.995 32.885 54.398 29.987 40.103 81.604 3.560 48.074 13.643 7.796 4.260 30.454 8.888 47.460 41313 5.265 15.099 0.710 6.627 29.557 58.882 7.493 13304 44.601 14.496 31.274 3.187 0.684 5.124 14.291 4.136 27.571 27.800 103390 8.766 58.628 40.184 7.845 22.755 3.017 Mwh Rank 1 20 12 4 13 9 2 36 6 23 28 35 15 27 7 11 33 22 40 31 16 5 30 25 10 24 17 38 41 34 26 37 19 18 3 79 8 14 32 21 39 Ranking Rate (1 = lowest) vs. Muni Mwh sales (1 = largest) for Mass Munis & MV1 WEC 4( 3. 3# 2' a � 2e m tl: 1' V J I V I J LV LJ JV J J TV Mwh sales Rank Histogram Percentage vs. average Retail Rate for 40 Massachusetts [Muds (no MWWEC) Source, APPA 2011-2012 Statistical Report 10C 9c 8a 70 60 as s0 �a 40 o� 30 20 10 0 10.0 ` 11.0 12.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0 21.0 Average Retail Fate, it f kWh r° a,: