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HomeMy WebLinkAbout2012-06-18 RMLD Power and Rate Committee MinutesReading Municipal Light Department (RMLD) Board of Commissioners Power & Rate Committee MeetinZ Regular Session June 18, 2012 Start Time: 7:20 p.m. End Time: 7:45 p.m. Attendees: Committee Members: Ms. Snyder (Chairman) and Mr. Pacino RMLD Staff: Messrs. Cameron, Seldon and Carpenter Commissioners: Mr. Soli and Ms. West Chairman Snyder called the meeting to order at 7:20 p.m. At 7:21 p.m. Mr. Pacino made a motion seconded by Ms. Snyder that the Power & Rate Committee go into Executive Session based on Chapter 164, Section 47D exemption from public records and open meeting requirements to discuss confidential, competitively sensitive or other proprietary information and return to Regular Session Motion carried 2:0:0. Summit Hydro Mr. Pacino made a motion seconded by Ms. Snyder to recommend to the RMLD Board of Commissioners to authorize the General Manager to finalize negotiations and execute a contract with Summit Hydro located at the Wyre Wind Hydroelectric facility in Jewett City, Connecticut for the purchase of not more that 1.8 megawatts of hydroelectric power for a term not to exceed two years, for energy and capacity only. Motion carried 2:0:0. Solar Energy Projects - Approval for On System Projects Mr. Cameron explained that he sent a memo to both the Power & Rate Committee and the Citizens' Advisory Board (CAB) requesting pre - approval of purchased power agreements (PPAs) for on- system solar projects that the RMLD will be signing in the future. The three solar projects that have come to the RMLD so far have been from one developer who has provided similar pricing and agreed to the same contractual terms and conditions for each of the projects. Mr. Cameron is asking the Power & Rate Committee to pre- approve contracts for on system solar projects up to 10 megawatts, not to exceed fifteen years, under similar contractual terms as have been agreed to for recent solar projects. Mr. Cameron said that these projects afford many benefits to the RMLD including lowering both the RMLD's Forward Capacity Markets and transmission costs. The RMLD does not have to commit any money to these projects other than paying for their output. Line losses are minimized because the energy is generated on system. The output of these projects will displace more expensive fossil fuel plants. The RMLD customers who allow the project developers to use their property to house these projects will receive revenues in the form of lease payments. Mr. Pacino asked if the meters spin backwards for the customers where these projects are located. Mr. Cameron explained that these projects for pre - approval are for commercial customers. The solar developers cannot sell the output to the RMLD customers so the RMLD buys the output of these projects. Mr. Soli asked if there was a catastrophic failure at the sites would the RMLD be effective. Mr. Cameron said that the RMLD is protected through the configuration of the interconnection required for these projects. Mr. Pacino asked if there any drawbacks to these projects. Mr. Cameron said no, that these projects are beneficial to the RMLD. Regular Session Meeting Minutes Power & Rate Committee Meeting June 18, 2012 Mr. Soli asked if the projects will increase the RMLD's fuel charge. Mr. Cameron said he did not believe so because these projects will displace higher priced energy during the day when the projects are operating. Mr. Pacino made a motion seconded by Ms. Snyder that the Power & Rate Committee recommend to the RMLD Board to authorize the General Manager to execute purchased power contracts for on system solar energy projects up to a cumulative total of 10 megawatts effective 6/18/12, not to exceed a fifteen year period, and under similar contractual terms and conditions as being agreed to recently with solar energy developers. Motion carried 2:0:0. At 7:45 p.m. Mr. Pacino made a motion seconded by Ms. Snyder to adjourn. Motion carried 2:0:0.