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HomeMy WebLinkAbout2012-02-29 RMLD Board of Commissioners Minutes Reading Municipal Light Board of Commissioners Regular Session 230 Ash Street Reading,MA 01867 February 29,2012 Start Time of Regular Session: 7:36 p.m. End Time of Regular Session: 9:34 p.m. Commissioners: Richard Hahn,Chairman Philip B.Paciao,Vice Chair Mary Ellen O'Neill,Commissioner Gina Snyder,Secretary Robert Sall,Commissioner Sten; Vitiate Cameron,General Manager Beth Ellen Antonio,Human Resources Manager Jared Carpenter,Energy Efficiency Engineer Nick D'ABeva,Technical Services Manager Jeanne Foil,Executive Assistant Robert Fournier,AccountingBusiness Manager William Seldon,Senior Energy Analyst Citizens'Advisory Board Arthur Carskatsane,Chair Opening Remarks/Approval of Meeting Agenda 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 Lynntield. Introductions Chairman Hahn introduced Chair Carakatsane of the Citizens' Advisory Board(CAB). Chair Camkatsane reported that the CAB met earlier this month in which Chairman Hahn also attended. The major issue on the CAB agenda was a motion made to reconsider the Renewable Energy Certificates (REC's), this motion passed, discussion ensued, however no final action was taken. Chair Camkatsane aid that the CAB also attended to housekeeping matters at this meeting. The CAB is currently seeking out another new date and will inform the Board of the new meeting date as soon as possible. Presentation—Quarterly Conservation Program Update—Mr.Carpenter(Attachment 1) Mr. Carpenter presented his quarterly Energy Conservation Program update. Mr. Carpenter addressed the fallowing: Awwds/Umnis, Project Review, New Project Update,Renewable Technology,and a Commercial Solar Project. Mr. Carpenter stated that the RMLD was awarded two grunts. The fust grant was awarded from the Metropolitan Area Planning Council(MAPC)for the four towns in the RMLD's service territory to develop a local energy action plan. Mr. Carpenter explained that this project will be ongoing for two years, he has met with the few towns and this is progressing. The second grant was awarded from the Department of Energy Resources(DOER) funded from the Regional Greenhouse Gas Initiative (RGGp in which the RMLD received$50,000. Mr. Carpenter pointed out that these funds will be used for a residential demand response program, technology updates and for hot water switches, however, the grant was for kilowatts hours for energy, not demand,but they were intrigued by RMLD's proposal,therefore the RMLD received these funds. Mr. Carpenter provided updates on three projects the goal of which is peak reduction. The first project is a commercial building in North Reading the goal was 44 kW on peak reduction with the rebate of$310 per kW removed. The second project is a commercial project in Reading the goal was 721W on peak reduction with actual en peak of I68kW,with the rebate of$60 per kW removed. The thud project is a NorthReading Public School the goal was 6 kW but the actual was 12 kW on peak reduction with the result of a rebate of$250 per kW removed—a very small project with a very fast payback. i� I s Regular Session Meeting Minutes 2 February 29,2012 Presentation—Quarterly Conservation Program Update—Mr.Carpenter(Attachment 1) Mr. Carpenter mentioned potential new,projects with customers on the commercial side including: lights,roof top air conditioners, solar arrays under discussion, audits and automation systems. On the residential side, more geothermal may came up especially where no gas service is available, with two projects complete. Mr. Carpenter stated that he is currently working on four projects with the likelihood that one or two of these projects will come to fruition. Mr. Carpenter stated that it's important to get RMLD involved as soon m possible when considering renewable projects. RMLD can help with any renewable or sustainability,project, and hopes that municipal renewable projects will be proposed.In addition,Columbia Construction in North Reading has a 75 kW solar army. Mr.Carpenter said that it is the best solar installation he has seen and Columbia Construction is willing to show the solar array to anyone who is interested. Mr. Soli asked what voltage they generate. Mr. Carpenter replied most likely 480. Chairman Hahn asked if there is a chance that they would send staff back to the grid and require net metering. Mr. Carpenter replied, no. Mr. Carpenter added that their building is very efficient;hence the reason why going to this array was a good idea. Ms.O'Neill asked are we reaching a point where we can include what percentage of am power supply portfolio that can be met by energy efficiency, conservation measures and efforts. Ms. O'Neill asked if we can start to put a number on that. Mr. Carpenter replied, yes. Ms. O'Neill suggested setting some goals, strategies that can be specifically identified and putting a number in them. Ms. O'Neill mentioned the Residential Time of Use program as one means to achieve this, the Water Heater rate when that demand response program gem in place by reaching out to people. Ms. O'Neill asked is that something we can start to take a look at. Mr. Carpenter responded, M. Ms.O'Neill congratulated Mr.Carpenter on the two grants and thanked him for providing her with the Information on them. Ms. O'Neill had questions on the Water Heater demand response program. Ms. O'Neill clarified that this is a demand response program with the customers being shut off daily, how does this integrate with the RMLD's existing Water Heater rate? Mr. Carpenter responded that currently, the plan is to leave the rate m is, but Mr. Cameron is going in analyze the rate to see if it needs adjustment. Mr. Carpenter gave a brief explanation of solar hot water potential. Ms.O'Neill said that within the grants policies were mentioned. Ms.O'Neill commented that these policies should be shared with the Board. Ms.Snyder congratulated Mr.Carpenter an the grants and said it was great work Approval of January 5,2012 Board Minutes Ms.Snyder made a motion seconded by Mr. Patin that the RMLD Board of Commissioners approve the Regular Session meeting minutes of January 5,2012. Motion carried 5:0:0. Report from RMLD Board Committees Report of the General Manager Committee—Chairman Hahn General Manager's Contract Chairman Hahn reported that the General Manager Committee met on February 9 which was a short meeting. Items discussed included recent events. Some members provided feedback on the General Manager as part of his performance review. The consensus of the group is (hat the real evaluation will occur in August, no action was taken. Report of the Power& Rate Committee—Chairman Hahn RMLD's Annual Request for Proposal for Power Supply Chairman Hahn reported that the Power&Rate Committee mel this evening before the RMLD Board meeting. The item on the agenda that was discussed is the next phase in RMLD's power supply procurement program. Messrs. Cameron and Seldon made a presentation to recommend that the Department go out and seek bids for power supplies beginning in 2013 and beyond. Chairman Hahn added that this was also raised at the Citizens' Advisory Board meeting that Chair Carakastane referred to earlier. Chairman Hahn staled that the vote at the Citizens' Advisory Board meeting was 5:0:0 to authorize the Department to go out,obtain the bids and procure power supply. The Power&Rate Committee voted earlier this evening 3:0:0 to do the same. Regular Session Meeting Minutes 3 February 29,2012 Report of the Power&Rate Committee—Chairman Hahn RMLD's Annual Request for Proposal for Power Supply Mr. Seldon explained that this is the sixth time they have gone through this process m part of the strategic power supply plan to fill a portion of the Department's needs for energy in these four year chunks. Mr.Seldon said that the Department thought it was prudent not to have all its eggs in one basket and the layering and laddering approach for power supply spreads out and hedges pricing risks by not going out for overly significant amounts of power at one time. Mr. Seldon stated that the Citizens' Advisory Board as well as the Power&Rate Committee were given this presentation. Mr. Seldon said that the Department will be looking at indicative pricing and the entities that fit the criterion will be short listed and move forward to procure the power supply. Mr. Seldon explained that this is being done a little earlier this year, in April,because the natural gas fumes are low right now and the Department would like to take advantage of this. Ms. Snyder made a motion seconded by Mr. Soli that the RMLD Board of Commissioners authorize the General Manager to execute one or more Power Supply Agreements in accordance with the RMLD's Strategic Power Supply Plan for power supply purchases fm a period not in exceed 2013 through 2016 and in amounts not to exceed 28 MW in 2013,22 MW in 2014,21 MW in 2015,and 20 MW in 2016 m presented by the General Manager and Staff. Motion carried 5:0:0. General Manager's Report—Mr.Cameron(Attachment 2) RMLD's Telephone System Mr. Cameron reported that them was a comment at the Board meeting in December on the RMLD's telephone system with customers not getting through to a live voice during the October storm. Mr.Cameron said that there are three things he has learned: 1. The present system has twenty-five lines coming in however,only eight callers can listen to the message at once then the callers have the option of getting a live voice.Mr.Cameron explained that the system works 99.9%of the time,but when there are norms or feeder outages then this is not sufficient. A feeder outage can consist of 1,000 customers. Most feeder outages are on the order of an haw in duration.2. The system can be upgraded in order that more customers listen to the message increasing it o sixteen customers listening to the message is a one time charge of$32,000. 3. Use an outside messaging service. Smaller systems use this on a smaller scale, not for 2,000 to 3,000 customers. There are logistical issues with respect to easuting that the answering service has the most up to date and accurate message to give customers. Mr. Cameron said that there has to be an exchange of information back from the answering service because this information is vital in the diagnosis of the outages during storm outage situations. Mr. Cameron said that he is Dunking of putting a committee together intemally or to commission a study of best practices and industry standards. Mr.Cameron stated that the phone system is good for our day to day operations with the exception of large outages because customers want to speak to a live voice. Mr. Patin said that the possibility of social media has been discussed and asked if this would be part of it. Mr. Cameron stated that there have been meetings on social media and he does not think this will alleviate the phone system. Mr.Cameron added that the RMLD is looking into using Twitter,not on a regular basis,but when there are storms o provide updates. The RMLD's website can also be utilized. Also,as done in the past storm,updates can be sent to the Town Administrators/Managers twice daily which worked well. Chairman Hahn stated that we have to do something with more of these options fleshed out. Chairman Hahn suggested that in place of a live person someone give their address and time of the outage logged into a Word Document and have someone follow up with that later. Chairman Hahn stated that there are a bunch of options that we are not looking at. It might happen only once in every ren years,but that is when you get egg on you face. This is something we should do that should be expedited with a timeline to get this study completed. Chairman Hahn asked Mr. Cameron what is a reasonable time. Mr. Cameron said that he could get the study completed by the end of the fiscal year June 30. Rate Stabilization Fund and Pension Trust Transfer, Mr. Cameron stated that Ms. O'Neill had asked at the last meeting about the Rate Stabilization Fund and Pension Trust Transfers. Mr. Cameron reported that the RMLD made a Pension Trust Transfer of$1 million because the Pension Trust Fond was depleted. Regular Session Meeting Minutes 4 February 29,2012 General Manager's Report-Mr.Cameron(Attachment 2) Rate Stabilization Fund and Pension Trust Transfers Mr.Cameron said that there was no Budget Committee meeting. In the past,when we have made transfers we have had Budget Committee meetings. Mr. Cameron said that his attention was on the hurricane at the end of August. Mr. Cameron said that a Budget Committee should be set when the Draft Audited Financial Statements are being completed and have that meeting whether or not there me transfers and to discuss year end. Ms. O'Neill slated that she had no confusion over the Pension Trust. In terns of the Rate Stabilization Fund transfer, she thought there should have been a Budget Committee meeting. Mr. Cameron said that he will ensure that a meeting will be scheduled at the end of August or the beginning of September in the future. Massachusetts proposed Municipalization Bill Mr. Cameron reported that the proposed Massachusetts Municipalization Bill has been discussed for the last two to three years. The bili started out as a bill to lay down ground rules on how a town or a municipality can start a municipal electric light utility. Mr. Cameron explained that Hudson and Stowe bad a case in the eighties which went on for years with the result being that a template of the Twenty Year Agreement was utilized to resolve their differences. There needs to be a willing seller and a willing buyer. Mr. Cameron stated that with the Municipalization Bili in the last month the House Utilities Committee made changes to the bill. The changes took away exemptions that were hard fought during the deregulation era in the late nineties. The exemptions include not having to pay into the Renewable Energy Trust Fund, Energy Conservation Fund es well as the service territory being protected from other utilities coming in. Ms. Snyder suggested that in the letter to let the legislators know that the previous version of the bill could be supported,however,the current revisions made by the committee are unacceptable as it stands and does not work for public power. Ms. O'Neill commented that the letter is too long in its present format, we should work with the legislators to phrase this in a manner that we will be working with them. Chairman Hahn added that the letter is too long and he would be in favor of a more focused version. Ms.O'Neill will coordinate changes to the letter with Mr. Cameron. Executive Office of Energy and Environmental Affairs(EOEEA) Mr. Cameron explained that he and representatives from both Braintree Electric Light Department and Energy New England met with Barbara Kates-Gamick who is the Energy Undersecretary of the Executive office of Energy and Environmental Affairs to discuss energy conservation programs in the municipal areas. This item is being addressed in response to a question from one of the commission members on the payables relative to a Rubin and Rudman billing. Mr. Cameron stated that Rubin and Rudman facilitated a meeting and coordinated information with the commission members from the Massachusetts Department of Public Utilities (DPU) relative to energy conservation programs and renewable energy incentives in which all three commission members, Berwick Westbrook and Cash were in attendance. Mr. Cameron said that there needs to be more information Bow because they are act in coned with what the municipals are doing with respect to energy conservation and renewable energy projects. Mr.Cameron commented that this will be an ongoing effort to make sure that our information gets to the hill. Ms. O'Neill questioned why the RMLD would be paying legal bills with respect to this topic. Mr. Cameron responded that some individuals at Rubin and Rudman have relationships with these people and they can schedule meetings quickly and know how to shape the presentation. Ms. O'Neill asked for clarification. Mr. Cameron explained that the issue is there may not be a clear understanding of what municipals are doing with respect to energy conservation and renewable energy programs at the DPU and in the State House. Financial Report-January 2012-Mr.Fournier(Attachment 3) Mr.Fournier reported on the Financial Report for January 2012. Mr. Fournier reported that for the month of January the Net Income is $498,000 increasing the year to date Net Income to $2.4 million, coming in under budget by $2.5 million. Mr. Fournier said that the year to date Fuel Expenses exceeded Fuel Revenues by $600,000. Year to dale Base Revenues are under budget by$1.9 million or ja 6.7%. Actual Base Revenues were $27.3 million compared to the budgeted amount of$29.2 million. Purchase Power Base expense was under budget by$I million or 6.4%under budget. Actual Purchase Power Base costs were WF $14.9 million compared to the budgeted amount of$15.9 million. Regular Session Meeting Minutes 5 February 29,2012 Financial Report-January 2012-Mr.Fournier(Attachment 3) Mr. Fournier commented that Operating and Maintenance expenses were under budget by $196,000. Actual Operating and Maintenance expenses were$6.7 million compared to the budgeted amount of$6.9 million. Year to date kilowatt hour sales were 419 million which is 15 million kilowatt hours or 3.5% below last year's actual figure. The Gaw revenues collected year to date were $419,000 bringing the total collected since the inception of the Gave rate to a little over$1 million. Mr. Soli clarified, the Base Revenue is off$1.9 million is that due to the fact that the RMLD dropped load due to mild weather. Mr.Fournier replied that on the residential side is 920,000 under budget and the commercial side is 818,000 which is weather related. Mr.Cameron stated that this Inas occurred due to the weather because heating and cooling days are down mostly hearing days,down 27% through January. Mr. Soli commented that a hot May and June would make up for some of this. Ms.O'Neill asked about the Operating Fond which has gone up$750,000 since last month. Ms. O'Neill questioned that shouldn't something be done sooner m opposed to later such as a transfer to the Other Post Employment Benefit or Pension Fund Trust that need funding. Mr. Cameron stated that he and Mr. Fournier have had discussions relative to this;however,he would like to wait to see how the sales shake out between now and the end of the year. If the RMLD is down that much revenue due to weather those funds may be needed to snake up for some deficiencies. The funds can be transferred instead of pulling from the Rate Stabilization Fund. His recommendation is to wait a couple of months. Ms.O'Neill asked a question on the electronic billing,how many customers have moved over to that. Mr. Fournier responded a little less than two thousand. Ms. O'Neill clarified that they do not receive anything in the mail. Mr. Fourier responded that is correct. Ms. O'Neill asked about the estimated savings,would it be worthwhile to come up with some incentive program. Mr.Fournier responded that they had a meeting with the vendor a couple of weeks ago. Mr. Fournier reported that their product is robust and the RMLD is only using a fraction of it. Mr. Fournier explained that they wanted to ensure that the RMLD's personnel felt comfortable with this. Mr. Fournier reported that phase two of this would be to obtain mono e-mail addresses, promote this and put it in the In Brief to attract more customers to use this service. Mr. Fournier noted that the vendor is pleased with RMLD's progress and impressed with the results. Ms. O'Neill commented that once you go on paperless billing you do not receive the In Brief Mr. Fournier pointed out that the In Brief is found on the RMLD's website. Ms. O'Neill said that customers arc not going to search for this and that there should be some mechanisms available to send it with the bill. Mr.Cameron commented that we have to ensure that the e-mail billing does not end up as spam. Mr.Cameron commented that if there are items that are sent out to customers then a third billing party can be used and will be investigated. Ms. Snyder said that in her electronic bill this month she believes it had a link to the In Brief. Ms. O'Neill noted that In Brief is a major way the RMLD communicates with customers.Mr.Fournier said that he will get back to the Board on this. On another matter, Ms. O'Neill said that she expected a memo from the General Manager relative to the budget, since the budget is coming up in a month. Mr.Cameron said the philosophy of the budget memo will be out before the end of the week. Power Supply Report-January 2012-Mr.Salting(Attachment 4) Mr. Seldon reported that RMLD sales totaled approximately 56.6 million kilowatt hours and as a result, the RMLD undemoilected by approximately $274,000 resulting in a Deferred Fuel Cash Reserve (DFCR) balance of$2.45 million. The January Fuel Charge was set at$.055/kilowatt hour, lowered to 5.054tilowatt hour and anticipated to remain the same for March. The RMLD hit a peak demand of 106.6 megawatts at 6:00 p.m. on January 16 compared to a demand of 112.2 megawatts in 2011. Mr. Seldon said that this can be attributed to the weather. Mr. Seldon pointed out that January was very mild with an average temperature of 34.2 degrees which is 5.2 degrees higher than normal. Regular Session Meeting Minutes 6 February 29,2012 Power Supply Report-January 2012-Mr.Seldom(Attachment 4) Mr. Seldon said that the RMLD's monthly capacity requirement was 201.3 megawatts equivalent to $6.64 per kilowatt hour month. Table 4 shows both the capacity and energy costs as well as the amount of energy. In January the average cost for capacity and energy came in at $.0785/Kwh which is $.0045 higher than December. Transmission costs for the month were$639,000 which is approximately a 2.7%increase from the previous month. Mr. Soli commanded that he was surprised to we what happened to the ISO Interchange because it is naming $.02 above, is there something special happening. Mr. Seldon responded that they reviewed the ISO costs for the month and there were times the real time load exceeded what we bid in the day ahead load where the prices were actually high at over$300. Engineering and Operations Report-January 2012-Mr.D'ABeva(Attachment 5) Gaw Update Mr. D'Alleva reported on the upgrade project at the Gaw Substation and the only change is a meeting scheduled for mid March with the project engineer PLM for the final walk through for the project to make sure everything was done as per the bid. There were finishing touches completed with the project one hundred percent complete. In the variance report Project 1 -5W9 Reconductoring-Ballardvale Street-is being worked on,Project 2-High Capacity Tie 4W 18 and 3W8 Franklin Street- is being worked on, Project 3 - Upgrading Old Lynnfield Center URDa - is being worked on, Project 6 - Capacitor Banks - is being worked on, and Project 8 - Relay Upgra&/Beplacement Project at Gaw-is being worked on. There were two new commercial services and ten residential services. In January there were 24 cutouts replaced bringing the total to 178 fiscal year to date. In the Reliability Report the Customer Average Interruption Duration Index (CAIDI) for the month is 57 minutes which is down 14 minutes from December. CABJI is down marginally for the year. The roiling average is 60.3 minutes. The System Average Interruption Frequency Index (SAIFI) for the month is .21 outage incidents. The rolling average is .44 outage incidents. There was not much of a change from the December number. The Months Between Interruptions(MBTI)is 27.3 months which is pretty much the same as December. Number of calls for the month was 89, outage incidents 7; customers affected 508; feeder outages 2; area outages 2 and 3 service outages. Causes of outages are pretty much the same. Mr. D'Alleva stated that there have been 15,000 meters installed as part of the meter upgrade project, Reading is completed,they are now working on Wilmington and North Reading. Ms. O'Neill commented that she would like an evaluation on the routine construction. We find ourselves seven months through the budget with the routine construction over spent and not that much spent in capital projects;she would like to see more items listed. Mr.Cameron said that he will take care of this. Mr.Soli said that he would like to see on the meter upgrade project the progress versus scheduling and the projected endpoint Mr. Patin added to follow up on Ms.O'Neill's comment;$5.9 million has been budgeted with only$2.3 million spent in seven months are there projects that are not going to get completed. Mr. D'Alleva said that some of the system relay projects at the Gaw substation will probably not be completed by the end of this fiscal year. Mr.Cameron added that the distribution automation project with a cost of approximately $500,000 has not been completed. Mr. Cameron pointed out that the reclosers and the SCADA communication system may not be completed. Mr. Cameron said that there has been some technology advances recently and there has been discussion on whether to hold back on such projects and defer to the next year even though specifications have been put together. Mr. Purim asked for a quarterly update with an explanation of why projects have been put on hold. Regular Session Meeting Minutes 7 February 29,2012 M.G.L.Chapter 30B Bids(Attachment 6) 2012-27 RTU Station Controllers and Supplementary Services Mr. D'Alleva said that this is to replace the present RTU at Station 4 which is old and they are unable to obtain new parts, it's in the capital budget to have the RTU replaced and upgraded. There were fifteen invitations to bid sent out and two bids received with one bid non responsive. Chairman Hahn indicated his concern with this and with two other bids in which them is one bidder. Chairman Hahn asked why only one qualified bidder. Mr. D'Alleva could only speak to the bid that was thrown out, explaining that the non responsive bidder wanted to have remote access to perform this work and the RMLD does not have any external access to the SCADA system. Mr. D'Alleva commented that this type of work needs to be performed by the RMLD's Control Center in order to keep compliant with the ISO. The non responsive bidder had several objections to the bid, but the key was the offsite programming. Chairman Hahn said that he has no problem limiting offsite access to RMLD's SCADA system,he does not understand why them is only one bid. Mr.D'Alleva said that prospective bidders come to look at the potential project,but demographic restrictions such as the company being located in California is a deterrent because it can take two to three months to get the system operational. Chairman Hahn mentioned WESCO, Stuart Irby and Power Sales Group not bidding on this project-they am local companies. Chairman Hahn asked if anyone called them to ask why they did not bid, if not the next time they should call. Mr. Cameron stated that we will call everyone one of them. Mr. D'Alleva explained that this is involved because it is a specialized piece of equipment. Mr. Soli asked what an RTU is. Charman Hahn responded that it is a remote terminal unit. Mr. Soli asked what Station 4 is. Mr.Cameron responded Gaw. Ms Snyder questioned if the bid should be sent out again to see if them could be mom bidders. Mr. D'Alleva commented that both bids received were within two percent of each other. Mr. Cameron added that if you go out to bid again he does not think you will obtain better pricing. Chairman Hahn expressed his dissatisfaction with the one bidder. Ms. Snyder made a motion seconded by Mr. Patin that bid 2012-27 for RTU Station Controllers and Supplementary Services be awarded to Survalent Technology Corp. for a total cost of$94,023.00 as the lowest qualified bidder on the recommendation of the General Manager. Motion carried 5:0:0. 2012-29 Line Truck Lift Equipment Inspection and Preventative Maintenance Mr. Cameron stated that there was one bidder. The other companies were called they did act like the insurance requirement of five million dollars. Mr.Cameron said that the RMLD requires this amount of insurance in the case of lift equipment as someone could get injured if it does not function properly. Also,some of the companies do not want to poet the bond which is required by Massachusetts General Laws,Section 30B. Chairman Hahn asked what was paid in 2011. Mr.Cameron responded$92,685 for the prior three year contract. Mr. Cameron explained there was an increase because the RMLD asked for more on the maintenance side with respect to tightening bolts which translated into $7,600 annually. Chairman Hahn asked if this is the RMLD's current supplier. Mr.Cameron replied,yes. Ms. O'Neill said that it should be looked at m see what can be done to foster mom bids because this is problematic with some of the bids. Ms. O'Neill commented that the work performed by such companies is looked at by the RMLD m see if the work is acceptable. Mr. Cameron said that facilities staff checks on this before payment is made. ® Ms. Snyder made a motion seconded by Mr. Patin that bid 2012-29 for Line Truck Lift Equipment Inspection and Preventative Maintenance Service be awarded to James A. Kiley Co. for$115,560.00 as the lowest qualified and responsive bidder on the recommendation of the General Manager. This is a three-year contract. Motion carried 5:0:0. Regular Session Meeting Minutes g February 29,2012 M.G.L.Chapter 30B Bids(Attachment 6) 2012.30 Line Truck Chassis Inspection and Preventative Maintenance Service Mr. Cameron said that the non bidders were contacted and the reason for not submitting a bid included they could not guarantee that everyone working on the chassis had certified training. The RMLD requires American Automotive Standards for mechanics that work on our trucks. Ms. O'Neill commented that this is the current supplier the RMLD uses. Chairman Hahn said that there are increases in the bids without competition and he is unsure what to do about that. Mr.Cameron said that the RMLD does not want uncertified mechanics working on its vehicles. CAB Chair Cmakatmne commented that with working with municipals over the years they have the same concern. It is one of the constraints of the bidding process. Ms. Snyder made a motion seconded by Mr. Pacino that bid 2012-30 for Line Truck Chassis Inspection and Preventative Maintenance Service be awarded to Taylor& Lloyd, Inc. for$106,517.66 as the lowest qualified and responsive bidder on the recommendation of the General Manager. This is a three-year contract. Motion carried 4:0:1. Ms.Snyder abstained. 2012-31 Meters Mr. D'Alleva said that this is a bid for five hundred network meters for some new developments going on. Diamond Crystal in Wilmington is approximately one hundred meters and 30 Haven Street in Reading is forty meters and Reading Woods which is a multi year project there will be four hundred to five hundred meters. Mr.D'Alleva stated that sixteen invitations to bid were sent out and three bids were received with AvCom being the lowest bidder. Chairman Hahn commented that we currently use this company. Mr.D'Alleva replied,yes. Ms. Snyder made a motion seconded by Mr. Patin that bid 2012-31 for Form 12 S Network ERT Meters be As awarded o AvCom Inc. for a total cost of$37,550.00 as the lowest qualified bidder on the recommendation of the General Manager. Motion carried 5:0:0. General Discussion Chairman Hahn said that a couple months ago Mr. Pacino raised the issue of International Financial Standards. Chairman Hahn stated that he read in The Wall Street Journal that these standards are going to be enacted. Mr. Pacino pointed out that at this point the SEC has to make the decision and is writing a plan for how to get to International Financial Standards.The Chair of the SEC says it has to be reviewed and is not expected before 2016. Mr. Pacino is not aware of any standards to deal with regulatory assets. It is a long process as the Char of the SEC is still evaluating. Ms. Snyder said that she had asked a question on the payables relative to the amount of electricity used by the warehouse. She went to the warehouse, the lights were on and there was no one in there with employees working 7:00 am to 3:00 pm. According to facilities, the lights never get turned off. Some of the lights are high bays and some are T-12's which are older. She hopes that someone can work with the owner. Mr. Cameron said that he will look into this. Ms.Snyder would like something to be done;the RMLD should be setting the example. Rate Comparisons,February 2012 The General Manager commented that the rate comparisons continue to took good, both compared to the investor owned utilities and neighboring towns. BOARD MATERIAL AVAILABLE BUT NOT DISCUSSED E-Mail responses to Account Payable/Payroll Questions RMLD Board Board Meetinen, Thursday,March 29,2012 and Wednesday,April 25,2012 Regular Session Meeting Minutes 9 February 29,2012 Citizens'Advisory Board Meetinu Thursday,March S,2012 Chair Carakatsane said that the Citizens' Advisory Board is in the process of rescheduling this meeting. Executive Session At 9:15 p.m Ms.Snyder made a motion seconded by Mr.Patin that the Board go into Executive Session m discuss, Rubin and Rudman billing on 2011 power supply, Choate Hall & Stewart billing for professional services billing and return to the Regular Session for the sole purpose of adjournment. Motion carried by a polling of the Board. Mr. Soli,Aye;Ms.Snyder,Aye;Chairman Hahn,Aye;Mr.Patin,Aye;and Ms.O'Neill,Aye. Motion carried 5:0:0. Adjournment At 9:34 pm.Mr.Patin made a motion seconded by Mr.Soli m 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. Gine Snyder,Secretary RMLD Board of Commissioners `1 Z w U 4-A i--I J--1 CIO r^N O a o � � N O ct � w bA � 0 W a) N U E-•I U �O in Con rA '2 Q a C, •0 3 � � d a Z 04 U M yc� W i+1 0 h }r b ct / •rl 0 cd 3 `� Cdw � o o C> 3 C o tn m W A �r j 7 0 � $ u2 § R ) � } ! o ,§ ƒ \ / § eu ._m _m 2 \ - a MUM ƒ \ \ .MU m L_, ) ._» ._, ; ILOZILIZ | ) \ % ° OLOZILIZL _ , m 7 ƒ 7 \ ° OLOZILIOL _! ! _. & k � 0 _, �a 9 # & § R _a * § 3 _, 00 ? ; ° �m §§ ~ \ 7 § § ® §u ; (mm)®� _ pA .. w �tR . � � 0o / § & a — : _ g § Ca •_a > 7 2 2 MUM u £ « | : ._. .a_ | , - _ » __. a a § 2 � ,_! / _« o_! k R \ \ ,_< 00 cd \ \� � (MA) __ . . � w ate / � ' UOZ/94 ZLOZ/94 3 p uWZMM LIOZ/94L p-I Q LLOZ/9/6 LLOZ/9/6 U 0 G 0 LLOZ19IL LLOZl9/L crs u LLOZI9IS LLOZ/9/S a73 ILOZ/9/C 6 LLOz/9/C LLoz/9n p LLozl9n a OLOZ/94L 7 OLOZ/9M ZUOZ19/6 OLOZ/9/6 RS y U iUi OLOZ/9/L OLOZ/9/L •� �f..'� OLOZ/9/9 OLOZ/9/9 OLOZ/9IC �p OLOZ/9/C OLOZ/9/L f6 OLOZ194 o 0 0 g g 0 RL 0 Q (w) PO.Wp wn04-URmOlrA a d00 U - -- N � �D V� rte+ � � y y N y m b m O O w b � O O z cl •.. O a a� on El Pq vi Q 0 I I I I « \ \ ./ z � � k � a � 5 2 / \cd � S 8 » ( 7 § \ § 0 @ § a $ A « ,/ + 9 ƒ § / to a k 2 7 § \ � q \ / } I I I tf' I 1 �' I � 2; �, * �_ .� • �� I ' � „`� � � - � � � , � � i � � � i , �° tiI � � , 1 :� - � ., � " , ' g • � i 1 _ '' k ��� I ,�'\, II .• 1 /. • s � �� � i.� � � ��� M1 ' 1 r , 1 R / . 1rr1 4 1 5 f„1 1 1 I,e � I 1 R Y I . i I P If V r .. . . __.- ■ ,�.�;\ �_. ,. ,t r.- ; +' __ �. - ,. �. ;; N 0 I r4 0 U m 0 a� a� • READING MUNICIPAL LIGHT DEPARTMENT To: RMLD 6nard of Commis1spioners - Date: February 22, 2012 From: Vinnie Camemn Subject: Telephone System Update At the December 7, 2011, Reading Municipal Light Department (RMLD) Board Meeting the Board of Commissioners asked to have the RMLD's telephone system analyzed to see if it is sufficient to handle customer requirements when large outages occur. The request was based on comments conceming the October snow storm that caused considerable damage to the RMLD's distribution system and caused customer outages for up to five days. Over the last year the RMLD experienced two storms (Hurricane Irene and the October Snow Storm) when the phone system was overloaded at the beginning of the storms and from time to time during the next day or so. The RMLD has investigated the capabilities of the existing telephone system with respect to its operation during perio ds of storms when a large amount of calls are being made into the RMLD. When a feeder outage occurs there could be over one thousand customers affected. The RMLD has the ability to switch its phone system to storm mode and twenty-five phones can be used to answer phone calls. In addition, the RMLD has a messaging system set • up so that a message can be recorded on its telephone system explaining the nature of the outage(s). The messaging option during outagew has shown to be an effective toot in getting outage information to the public. When the messaging Is in place the volume of calls being answered by the Station Operators or Customer Specialists is more manageable. Customers calling in about an outage want to be assured the RMLD knows about the outage, and the messaging option has proven to be vfkctive in getting the information to the customers. During an outage situation twenty-five callers have the option of talking to a RMLD employee or listening to a message explaining the nature of the outage, which the RMLD updates during the outage. If callers choose to listen to the message, only eight callers can listen to the message simultaneously. Overall, the telephone system works well for a large portion of the RMLD's communication purposes. When a feeder operation or a storm occurs, the RMLD's telephone system is stressed during the initial stages of the incident. The more severe the outage is then the more stressed the phone systcm will be. Me present phone system has an annual maintenance cost of appmximakly y50X1. Ilse RMLD could upgrade its present system 4e allow twenty-fi%e callers he listen to the messaging .%stem simultaneously, whir, would allow mare tlexibilty for nostomers that want to Anew the nature of tile outage and hang up. In this option, the number of lines coming into the RMLD would nut Change- the cost of this upgrade would be appmaximate•Iv 532,im, with the same maintenance fee that prvsenth,exists. theR%11.1) could also have an answcring service on retainer that would h.r%e rolls direch•d to them when a storm ar some ether ,large vxent attests the RSII Ds scrvico- ATTACHMENT2 territory. Obviously, more phone calls would be answered by a live person in this • alternative; however, this it would also present some logistical problems. The message about the outage would have to be,conveyed to the answering service very quickly along with updates, so that the customers are receiving timely and accurate information concerning the outage +ituation. The answering service would also mad the capability to get outage information back to the Station in order that Fngineering is able to assimilate and diagnose the outages in a timely manner. 1-his alternative would cost the RMLD approximately $40,M) per year, in addition to the cost of the existing system. The RMLD should commission a study on best practices with respect to communications with customers during outage situations to determine industry standards and the method that presents the greatest value to the RMLD. It should be noted that the RMLD is also exploring more efficient use of its website and social media to provide information to its customers during outage situations. • r . READING MUNICIPAL GHT DEPARTMENT To: RMLD Board of Commissioners. Date: February 22, 2012 From: Vinnie Cameron �WW Subject: FYI l rransfers- Pension Trust and Rate Stabilization Fund At the January 25, 2012 RMLD Board meeting Commissioner O'Neill asked about the transfers made from the Operating Budget to the Pension Trust and the Rate Stabilization Fund. Commissioner O'Neill wanted to know if these transfers should have gone before the Budget Committee prior to making the transfers. Pension Trust Transfer On May 25, 2011 the Budget Committee made a motion to recommend to the RMLD Board of Commissioners to transfer$1 million fn+m the Operating Fund to the Pension Trust Fund for FY 11. The minutes of the May 25, 2011 Budget Committee meeting am attached along with a memo suggesting that the transfer be made. At the May 25, 2011 RMLD Board meeting the RMLD Board made a motion to accept the Pension Trust Fund transfer and made a similar motion to transfer the $1 million into the Pension Trust Fund. The minutes of the RMLD Board meeting are attached. This transfer was made on June 21, 2011. ® Rate Stabilization Fund Transfer I sent a memo to the RMLD Board of Commissioners on November 19, 2010 (attached) concerning the Rate Stabilization Fund balance, which was below the $6 million level, which was set according to my performance items, and is attached. In this memo I stated that in the third quarter 1 would examine the financial position of the RMLD to determine whether the RMLD is able to make a transfer from the Operating Fund to the Rate Stabilization Fund, in order to get it above the$6 million level. On August 12, 2011, the Draft FYII Financials were sent to the Board of Commissioners. In an e-mail (attached) sent to Chairman Mahn, 1 stated that the Net Income number was a gird number (Mclanson 1-leath agreed with it.) I explained that we couldn't finalize the balance sheet until Mll (Melansrm heath) blessed our cash balances, which included the Rate Stabilization Fund transfer. The Draft June, 2011 Income Statement, kWh sales, and Budget Variance Report were included in the financial report for the August 11, 2011 RMLD Board Meeting (attached.) At the September '_%, 2011 RMLD Board mooting ( ninutes attached) the RMI 1) Board approved the RMI.D's FY I I Audited Financial StIRCntent. At this nmeting I pointed out that the RMLD had transferred $+0)00(1 from the Operating Fund to the Rate Stabilisation Fund, in order that the Rate 5tabilizat1011 Fund is in the range of St, million to s7 million, ,tca,rding to my performance items. Going forward, a Budget Committee meeting will he scheduled when the draft audited financials statements are being completed (without transfers) in order to discuss potential year end transfer(s). Attachments -6 Reading Municipal Light Board of Commissioners Reaular Session ATTACHMENT 2 230 Ash Street Reading,MA 01967 May 25, 2011 Start Time of Regular Session: 7:30 p.m. End Time of Regular Session: 9:00 P.M. .Attendees Commissioners: Richard Hahn,Chairman Philip B.Pacino,Vice Chair Gina Snyder,First Secretary Mary Ellen O'Neill,Second Secretary Robert Sufi,Commissioner Start: Vinnie Cameron,General Manager Robert Fournier,Accounting/Business Manager Paula O'Leary, E&O Operational Assistant Jane Parenteau,Energy Services Manager Kevin Sullivan,E&O Manager Citizens'Advisors Board Arthur Carskatsane,Chairman Chairman Hahn called the meeting to order and staled 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 4; ai--Hahn asked the Board members present if there were suggested changes or additions to the agenda. Ms.O'Neill requested that future agendas specify any anticipated items for action by the Board. The motion itself need not be listed, but if there are any anticipated motions,the topic of those should be listed under the committees or separately if appropriate. Chairman Hahn asked if it would be where the Board expects to lake a vote. Ms.O'Neill responded."yes;'and explained that if someone wanted to come down and speak on a particular topic,heishe would know what was being discussed at the meeting. Chaimtont Hahn suggested that in the right hand column on the agenda words be added such as"Vote Required". Discussion followed. Mr. Pacino suggested the words,"Action Item',and the Board agreed. Introductions 'there were no members of the public present,and the CAB representative,Chairman Arthur Carakatsane,would be laic arriving. Report from Board Committees Budget Committee—Vice Chair Pacino Report of May 9 and May 25 Meetings Mr. Pacino reported that the Budget Committee reviewed the FY12 Capital and Operating Budgets as presented on May 9. The C.4B approved those versions of the budgets. The Committee approved both the Capital and Operating Budgets as presented at that meeting by a vote of 3:0:0. Pacino reported that at this evening's Committee meeting two items were considered: 1)The Operating Budget had some changes d in an addendum that lowered the Net Income from S4.3 million to $3.9 million, approximately a S430,000 decrease due to inoml casts related to Power Supply, the demolition of the old Control Center, fuel expenses and fuel revenue. Mr. Pacino said that the Budget Committee reviewed those changes this evening with the General Manager and staff and approved the changes by a vote of 3:0:0. Mr. Pacino explained that these changes had been presented to members of the CAB and at least four of the members saw no problems with the addendum,and did not feel a meeting was necessary to discuss the changes. a_)Although the Department is Regular Session Meeting Minutes 2 May 25,2011 ' Budget Committee—Vice Chair Pacino Report of May 9 and May 25 Meetings still below making its 8% return, it made more revenue than anticipated. The Committee discussion about the excess include returning it to the customers or putting it in the Pension Reserve, which is severely under funded. If it were to be refunded no customers may have to give it back in the future in the forth of a rate increase. 11 doesn't rule out a rate increase,but it would delay the process. The Budget Committee fell it was prudent to Transfer the funds into the Pension Reserve,and recommended that the motion for the transfer be approved. Mr. Soli asked about whether the CAB was meeting on the changes. Mr. Cameron explained that when the CAB recommends the budget, it includes "no significant changes are made without CAB approval." The CAB was notified by e-mail and asked if they considered these changes significant, and they e-mailed back that they did not. Mr. Soli questioned the Open Meeting Law. Mr.Cameron responded that it was informational only and no discussion took place. Mr. Pacino made a motion seconded by Ms. Snyder that the RMLD Board of Commissioners approve the FY12 Capital Budget as presented in the amount of$5,910,048 on the recommendation of the RMLD Board Budget Committee, the RMLD CitizensAdvisory Board,and the General Manager. Motion carried 5:0:0. Mr.Soli questioned why the topic/motion was not on the agenda. Chairman Hahn staled that the discussion of the budget was on the agenda,but not Bagged as a vote. Mr.Cameron noted that the e-mails from the CAB would be a part of the meeting. Mr. Pacino made a motion seconded by Ms. Snyder that the RMLD Board of Commissioners approve the FY12 Operating Budgdo based on a Net Income Amount of$3,939,043 on the commendation of the RMLD Board Budge Committee, the RMLD Citizens re Advisory Board,and the General Manager. Mr. Soli moved to table the motion until Mr.Caml atvame arrived to hear his input. Mr.Pacino seconded the motion. Motion carried 4:1:0.(Chairman Hahn voted against this motion.) Ms.O Neill asked if this is the format(the Net Income Amount)that the Board usually approves for the budget. Mr. Cameron stated that it has been used in the past, although last year was done differently, the Board accepted the Operation and Maintenance section of the budget,but the revenues were not accepted,because a Cost of Service Study(COSS)needed to be done. Mr. Pacino noted that he would have liked to see the two(budget)motions on the agenda. Chairman Hahn asked if they could be attached separately, and Mr. Pacino said that was fine. Chairman Hahn's preference was to attach motions separmely or the agenda becomes crowded. He.aid that motions for bids will continue to be put in the agenda itself. and motions that can be reasonably anticipated will be attached. Power& Rate Committee—Chairman Hahn Report of May 16 Meeting Chairman Hahn reported the following: 1) A discussion continued from the Power & Rate Committee's April meeting regarding the possibility of a long term contract with an existing resource in New England,and the Committee decided not to recommend any action at this time. 2)An Annual Request for Proposals(RFP) for Power Supply was discussed. and a motion was made and approved by a vote of 3:0:0 to recommend to the full Board that they approve the RFP as presented. 3) New streetlight rates were recommended by the General Manager. Chairman Hahn pointed out for the most pan the rates are lower than the existing rates for most categories of streetlights. although .some old fashioned streetlights cost more. The Committee made a motion to recommend to the full Board that these new rales be accepted by a vote of 2:1:0 with Mr. Soli voting against this motion. 4) A change to the Commercial C Rate wa� discussed at the April 20 Committee meeting, but no anion was taken, because it had to go to the CAB. The CAB accepted Ih Commercial C Rale at its May 18 meeting,and the Power& Rate Committee voted m recommend the rate change to the full Board by a cote of 3:0:0. Regular Session Meeting Minutes 3 May 25, 2011 Power& Rate Committee—Chairman Hahn Report of May 16 Meeting CAB Chairman,Mr.Carakatsane,arrived at this time during the meeting. Chairman Hahn told Mr. Carakalsane(hat there was one item regarding the FYI 2 Operating budget that was held until he arrived. Mr. Camkatsane stated that the CAB had met several times on the FYI 2 budgets and recommended approval of both the Capital and Operating budgets. He noted that the CAB was apprised of the changes to the Operating Budget and no one requested that a discussion be re-opened. He added that they also recommended other items,i.e., rale changes that are before the Board tonight. Ms. Snyder made a motion seconded by Mr. Pacini that the RMLD Board of Commissioners approve the Annual Request for Proposal for Power Supply based on the recommendation of the RMLD Board Power & Rale Committee, the RMLD's Citizens' Advisory Boart and the General Manger to authorize the General Manager to execute one or more Power Supply Agreements in accordance with the RMLD's Strategic Power Supply Plan for power supply purchases for a period not to exceed 2012 through 2015 and in amounts not to exceed 22.050 MW in 2012, 16.750 MW in 2013, 17.600 MW in 2014,and 15.925 MW in 2015. Mr. Pacino amended the original motion with the following changes: strike the word"and", between Committee and the RMLD and place a comma there. Add in after the CitizensAdvisory Board,"and the General Manager",and delete the words in the last sentence after 2015. Ms. Snyder accepted the amended motion. Marion carried 5:0:0. Ms. O'Neill mentioned that she still wants the Department to continue to pursue efforts to obtain additional renewable energy power supply resources. Chairman Hahn noted that it is still the objective of the Board to find reasonably priced renewable energy. Ms. Snyder made a motion seconded by Mr. Pacino that the Reading Municipal Light Department Board of Commissioners approve � adoption of the streetlight rate as proposed based on the recommendation of the RMLD Board Power & Rate Committee, the ILD's Citizen's Advisory Board,and the General Manager. Mr. Soli was concerned that sometime in the future someone may ask what did they really vote on since no real record of what is being voted on,i.e.,the rates,is in the motion. Chairman Hahn slated that his recollection is that the filing of the rates speaks for what was done,and asked the General Manager if the rates have been attached to motions in the past. Mr.Cameron responded that rates have not been attached in the past,but can be. Mr. Soli said that a COSS has generally been on the meeting agenda, and the Board has approved the COSS, which is the record of what the Board voted on. Ms. O'Neill proposed to amend the main motion to read, "Move that the Reading Municipal Light Department Board of Commissioners approve the adoption of the revised streetlight rate as shown in attachment A based on the recommendation of the Power&Rale Committee,the RMLD's Citizens'Advisory Board,and the General Manager. Mr. Soli handed out a chart,and aid that he would say,"Table I attached". He said the table shows what the committee voted on,but that he had a problem squaring the number with Table 2,the operating budget,and came up with an S84,000 disparity. Chairman Hahn staled that if Mr. Solis intention is to attach this"fable, he could not support that. 'Fhe only thing voted on was the rates for each class of strcedigh(. lie added that it is not appropriate to attach this Table to the motion, but if Mr. Soli would like to bring the table to the Committee for discussion that would be fine. Mr. Soli wanted to find out about the disparity that appeared to be in the table between budget and expense on the steetlights. tv,ts noted that there are two components,capital and maintenance per lamp. Chairman Ilahn said that he has the opportunity to bring it to the Committee, and also noted that the table should be reviewed by the staff and the Committee prior to being presented at a board meeting. Regular Session Meeting Minutes 4 May 25. 2011 Power At Rate Committee-Chairman Hahn v Report of May 16 Meeting Ms. OTtcill clarified that the attachment is the chart that the Power & Rate Committee received that showed the different type o streetlights and the proposed rates. Mr.Cameron suggested that the FY I I Streetlight COSS be attached. 10 Chairman Hahn stated that the Power & Rate Committee and the CAB voted to accept the rates that are contained in the FYI I Streetlight COSS,and suggested creating a two-column table to show the lamps that are offered and the rates that will be charged. He stated that the handout is inappropriate,and he would out attach the entire COSS,because it was the rates that were voted. Ms.O'Neill asked if there were one chart in the COSS that contained the rates. Chairman Hahn stated that Table 4 lists the existing rate and the proposed rale, and could be attached to the motion. He asked if the motion could refer to Table 4. Ms.O'Neill amended the motion as follows: Move that the Reading Municipal Light Department Board of Commissioners approve the adoption of the revised streetlight rate as shown in Table 4 of the April 14, 2011 memorandum from the General Manger to the Board of Commissioners based on the recommendation of the RMLD Board Power&Rate Committee,the RMLD Citizens'Advisory Board,and the General Manager. Ms.Snyder accepted the amended motion. Motion carried 3:2:0.(Messrs. Pacino and Soli voted against this motion.) Chairman Hahn asked the General Manager to take Mr. Soles handout,review it,and respond to Mr.Soli's question. Mr.Cameron stated that the response would go to the entire Board. Ms. Snyder made a motion seconded by Mr. Pacino that the Reading Municipal Light Department Board of Commissioners approve the adoption of the Commercial C rate changes based on the recommendation of the RMLD Board Power & Rate Committee, the RMLD's Citizens'Advisory Board,and the General Manager. Mr.Soli had the same comment and concerns as the previous motion with no mte(s)being listed in the motion. Ms.Snyder moved to amend the motion as follows: Move that the Reading Municipal light Department Board of Commissioners approve the adoption of the Commercial C rate changes based on the attached RMLD Tariff- MDPU N223 dated to be filed Jane 1, 2011 and on the recommendation of the RMLD Board Power&Rate Committee,the RMLD's Citizens'Advisory Board,and the General Manager. Ms.O Neill seconded the motion. Motion carried 3:0:2.(Messrs. Pacino and Soli abstained.) Mr. Pacino made a motion seconded by Mr. Soli to bring the(FY 12 Operating Budget)motion(see below)back to the table. Motion carried 5:0:0. Mr. Carakatsane stated that the CAB received the changes to the Operating Budget,and no member requested a meeting to reconsider the budget. He added that if a member were interested in a meeting,one would have been convened. Move that the RMLD Board of Commissioners approve the FY12 Operating Budget based on a Net Income Amount of $3,939,043 on the recommendation of the RMLD Board Budget Committee, the RMLD Citizens' Advisory Board, and the General Manager. Motion carried 5:0:0. Approval of April 27,2011 Board Minutes Ms. Snyder made a motion seconded by Mr. Pacino to approve the Regular Session meeting minutes of April 27, 2011 with the following changes requested by Mr. Soli: On Page 5, third paragraph from the bottom, after the words"transfer scheme",change the period to a comma and add-and its design is being improved" Motion as revised carried 5:0:0. 10 Pension Frust Transfer Mr. Cameron reminded the Board a motion was needed for a transfer to the Pension Frust. Regular Session Meeting Minutes 5 May 25,2011 Pension Trust Transfer Ms.O'Neil made a motion seconded by Ms. Snyder to approve the transfer of$1 million from the Operating Fund to the Pension Trust based on the recommendation of the Budget Committee and the General Manager. lotion carried 5:0:0. General Manager's Report—Mr,Cameron E-Billing - The e-billing system went live on May 1, 2011 for both the residential and commercial customers, and any residential customer who did not fill out an RMLD update sheet and would like to receive an a-bill should contact the RMLD. Investments—The RMLD has a considerable amount of cash in a MMDT Pond that has very low interest,and therefore not working well for the Department. Mr. Cameron advised the Board that he will be going out for an RFP for investment services. If a satisfactory investment firm were selected,he would probably recommend that the OPEB fund be invested to try to cam more interest. He spoke to the Town Manager and mel with the Assistant Town Manager, Treasurer, and Mr. Fournier. They interviewed one firm just to see what they do for other municipal entities. He does have an RFP that he can put together and send out. Chairman Hahn questioned if this is something that the Department would make a recommendation to the Budget Committee. Mr.Cameron stated that bids do not go to a committee and the Board. Chairman Hahn staled that the idea of choosing a different investment strategy, not the RFP itself, is something reasonable to put before the Budget Committee. Mr.Cameron said that he had no problem with submitting it to the Budget Committee. Mr. Soli questioned when the Board went through the paperwork for the OPER, the Board was very careful about the language saying that the Town Treasurer had that responsibility not the Board. He wondered how all of this would affect the language that is currently set up for the OPEB. Mr.Cameron responded that he didn't know how this would affect that language,and added that the town treasurer would be using this to invest money. r. Pacing asked if the town would have input with the selection of the firm. Mr.Cameron stated that given that the town treasurer is custodian,they would be part of the selection process. Mr. Patin asked if this is going to change the legal ramifications of what they put in that document. Mr.Cameron suggested speaking to Rubin and Rudman. Mr. Pacino staled that he would feel comfortable with Rubin and Rudman looking at it. Chairman Hahn staled that one of the reasons he would want it sent to the Budget Committee is because he thinks it is important to understand what the liability question is. He said that is why the change in strategy should be discussed further before an RFP is sent out.The Board should have a better understanding and have some documentation on the pros and cons of doing this and how it affects the Department. Chairman Hahn will leave it up to the General Manager as to how to best proceed in improving the use of the asse ta. Mr. Pacino wished to again stress that if any member of the public has any questions or concerns, the General Manger is available anytime in his once. Mr. Pacino added that the public may contact the General Manger directly or the Chairman of the Board or even Mr. Pacino,the senior member of the Board. Financial Report—April,2011—Mr.Fournier(Attachment 1) Mr. Fournier reported on the Financial Report for April 2011. Mr. Fournier reported that the ten-month year to date Net Income is a little over$2.6 million. The year to date budgeted Net Income is $1.6 million, making the difference $999,000. Mr. Fournier said that the year to dale Fuel Revenues exceeded Fuel Expenses by .hiall,00ft. 'rhe energy consenation expenses exceeded energy conservation revenues by $129,000. The Gaw soil remediation uses total$1.2 million for this fiscal year bringing the total eost combining the two fiscal yeas to 52.3 million. Mr. Fournier reported major expenses over budget were the maintenance of line transforms by $634.000, which represents a lot of the Gaw mil remediation expense, and employee benefits by 5325.000. The latter number was due to sick leave buy hack payments made. Regular Session Meeting Minutes 6 May 25,2011 Financial Report—April,2011—Mr.Fournier(Attachment 1) s The Depreciation Expense and Voluntary Payments to the Towns were on budget. Cumulatively, all five divisions were over budget by$541,275. Discussion followed. Power Supply Report—April,2011—Ms.Parenteau(Attachment 2) Ms. Parenteau presented the Power Supply Report for April 2011. Ms. Parenteau reported that RMLD's load for April was 53.3 Million kWh, about a half percent increase compered to April 2010. Energy costs were $2.75 million, which is equivalent to 5.051 cents per kilowatt hour. RMLD sales totaled approximately 56.3 million kWhs and,as a result,the RMLD overcollected by$229,000 resulting in a Deferred Fuel Cash Reserve balance of$2.66 million. In April and May,the Fuel Charge Adjustment was set at$.0535 cents per kilowatt hour. Ms. Parenteau reported that the RMLD purchased approximately 27% of its energy requirement from the ISO Spot Market at an average cost of 541.20 per kilowatt hour. The RMLD hit a peak of 92.6 MW at noon on April 28,2011 as compared to a peak of 95.6 MW, which occurred on April 7. 2010 at 9:00 P.M. The RMLD's monthly capacity requirement was around 213 MW. The RMLD paid $1.62 million for capacity, which is equivalent to $7.59 per kW-month. Ms. Parenteau noted that on Table 3, the Stoneybrook Peaking Plant had an adjustment. Ms.Parenteau reported that transmission costs for April were$620,000. Discussion followed. Engineering and Operations Report—April,2011-Mr.Sullivan(Attachment 3) Gaw Update Mr.Sullivan reported on the Engineering and Operations Report for April 2011. Mr. Sullivan said that the Gaw Project had no changes in the tangible milestones. He added that the conning total of the project i� $6.846 million,and the soil remediation expense for this month is$7,600. Mr. Sullivan listed the following projects worked on during the month: Projects I, 2, 5,36,9,and 11. He added that another project was completed this month making a total of 9 completed projects. Mr. Sullivan said that on the service installations that there were two commercial services in Wilmington, one on Ballardvale Street and one on Main Street. Residential services: there were approximately 25-30 services for the month. In routine construction there were 31 cutouts replaced making a total of 338 for fiscal year 2011. Mr. Sullivan reported on the Reliability Report: Customer Average Interruption Duration Index(CAIDI)is up nine minutes due to the storm on April I; the System Average Interruption Frequency Index(SAIFI)decreased with 494 April customers affected by outages as compared to March's 1,877. The Months between Interruptions(MBTI)is up from 22 to 23 months. Mr. Sullivan provided an update on the reliability statistics numbers that include the April 1 storm: 124 calls, 24 (14 on 4/1) outage incidents,494 customers affected, no feeder outages, 20 area outages,and 4 service outages. Fifteen outages were due to trees,others were caused by birds,insulators and failed hardware. Ms. O'Neill stated that although she understands the numbers on reconciling the Gaw Project, the numbers do not include the soil remediation expenses,and to her that is the total project cost and therefore more realistic. Ms.(3'Netll asked for an update on the Meter Upgrade Project, and would like one each month. She added that the publicity has been good on the Project. Mr. Sullivan responded that the conning total of installed meters is about 4,900, averaging about 1,000 per month. He added that the concentration of installations has presently been in Reading, but does include all four towns, and installation is also being done on Saturdays. Mr. Soli questioned Mr. Sullivan on an invoice from the Massachusetts Department of Em'ironmental Protection(MassDEP)regardins the Gaw Project asking how long these charges would be billed,and Mr. Sullivan responded that there was just this one charge. Regular Session Meeting Minutes 7 May 25, 2011 M.G.L.Chapter 30B Bid 2011.14 Residential and Commercial Energy Audits Ms. Snyder made a motion seconded by Ms. O'Neill to award bid 2011-14 for Tier 11 Residential Energy Audits to Energy Egghead, C as the only qualified bidder on the recommendation of the General Manager. non carded 5:0:0. Mr.Cameron explained the bid was sent to many potential bidders,and only one was received. He then went over the costs. Ms.Snyder asked if the Department is hacking if customers one saving energy aver an audit. Ms. Parenteau stated that it has not been done;however,the Department has the ability to do it. Ms.Snyder stated that she would like to see that. Ms.ONcill had some reservations about awarding the contract to the only one that was received,not knowing why no one else bid. Ms. Parenteau had spoken to the Purchasing Manager, who did contact several of the potential bidders as did Mr. Carpenter. It appears to be a staffing issue for some of the organizations,because the RMLD requires that they be certified;others want to provide mom than just an audit. She added that the bid was advertised in the Reading Chronicle. Chairman Hahn noted that the bid was e- mailed to many companies,and thought that a longer term of two or three years might be more attractive to some. He added that there is not a lot of margin in this for a company,and since the contract takes effect on July I,there is no time for a second bid. Mr. Hahn asked if Egghead is the incumbent firm,and Ms. Parenteau replied that Egghead does provide the current audits. Ms.O'Neill asked if there had been a previous bid, and Ms. Parenteau responded that it had been bid last year. Ms. Parenteau added that the Customer Service Manager has received positive feedback from customers regarding the firm. The Department hopes to go out for a longer-term contract next year. Ms. Parenteau repotted that through April 144 audits were completed,and three audits using the blower door. Mr. Soli asked if all the munis have to provide this service,and Mr. Cameron responded that it is his understanding that they do,and added that the investor-owned companies must also pmvide the service. Gle ussion followed. General Discussion Mr.Carakffisane suggested making the Meter Project and E-billing more prominent on RMLD's web site. Regarding e-billing,Ms. Snyder stated that she thought she would receive an e-mail after she resumed the red card. Mr. Fournier responded that he would look into it. Ms.O'Neill requested an update on the Green Communities Act in Massachusetts. BOARD MATERIAL AVAILABLE BUT NOT DISCUSSED Rale Comparisons,April,2011 E-Mail responses to Account Payable/Payroll Questions Upcoming Meetings R11LD Board Meetings Wednesday,.lune 22,2011 Executive Session Not held. Adjournment At 9.00 p.m. Mr.Soli made a motion seconded by Mr. Pacuto to adjourn the Regular Session. Motion carried 4:1:0. (MA.O'Neill voted against this motion.) ® 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 ATTACHMENT AN READING MUNICIPAL LIGHT DEPARTMENT To: RMLD Board of Commissioners Date: November 19, 2010 From: Vinnie Cameron Subject: FY11 - Rate Stabilization Fund and 8% Return on Plant Balances Net Income According to the Reading Municipal Light Department's (RMLD) financial statements the Net Income for FY10 was $2.78 million, which equates to approximately one-half of the RMLD's allowable 8% return. The FY10 Net Income level is higher than the $147,687 Net Income for FY09 due to strong (weather related) sales in the last quarter of FY10 and the decision to decrease the depreciation rate to 2%; which decreases the FYIO Operating Expense by about $1 million. (The FY11 RMLD Operating Budget anticipates the depredation rate to be 3%, which is the normal level.) Transfers The RMLD did not recommend any transfers for FY10 because the Construction Fund had a $4.8 million balance at the end of FY10, which is adequate to start FY11. The Operating Fund was at$8.1 million at the end of FYI O. Rate Stabilization Ft nd Balance The RMLD's Rate Stabilization Fund (RSF) had a balance of $5.4 million at the end of FY10. The balance of the RSF should be in the range of $6 to $7 million with a target of $6.5 million. This range was put into place by the RMLD Board of Commissioners in 2003. In the third quarter of FY11, I will examine the financial position of the RMLD to determine whether the RMLD is able to make a transfer from the Operating Fund to the RSF, in order to get the level above the$6 million level. 8"o Return on Plant The R:MLD does not foresee the need to make its allowable 8% return on Net Plant over the next few years. As stated earlier, the RMLD started out FY11 with a balance of 54.8 million in the Construction Fund. The Depreciation Expense should add another 53.5 million during FYI I. Presently, the RMLD's Capital Budget of $5.6 million; includes the remainder of the Gaw Sub Station project of about $875,000 and a meter upgrade project of about $766,000, with the remainder of the Capital Budget at$4 million. Presently, it is my goal, to keep the Capital Budget in the $4 million range not including special projects. With the annual Depredation Expense approaching $4 million and keeping the Capital Budget at $4 million, the RMLD does not have to collect its entire allowable 8% return in order to meet annual capital expenditures and Return to the Town of Reading. In the future, if a large construction project is undertaken by the RMLD, I would have the option of borrowing money to meet the cost of the project or recommend a rate increase to meet the 8% allowable return, which would result in more money available for construction. Page I of I Jeanne Foti _ From: Vincent Cameron AT7ACHMENT4 Sent: Thursday, August 25, 2011 12:14 PM To: Richard Hahn Cc: Bob Fournier; Jeanne Fell Subject: RE:August Board Agenda I talked to Mary Ellen this morning and told her that the PSL that was e-mailed 8/12/11 and will be in the Board books($2.8 mil in Net Income)is a good number. I also told her that the balance sheet cannot be finalized until MH blesses our cash balances. She was all right with this. I also told here that any questions that can be sent prior to the meeting would be appreciated. From: Richard Hahn [maiRo:rhahn@lacapra.com] Sent: Thursday, August 25, 20117:58 AM To: Vincent Cameron; Mary Ellen O'Neill Cc: Bob Fournier; Jeanne Fob Subject: RE: August Board Agenda I don't know what specific issues MaryEllen has,but will try and call her tonight. What is the status of year-end financials,and when do we expect that they will be finalized? From: Vincent Cameron [maiho:vcameron@RMLD.com] Sent: Thursday, August 25, 20117:33 AM To: Mary Ellen O'Neill Cc: Richard Hahn; Bob Fournier; Jeanne Fod Subject: RE: August Board Agenda Is there anything specific that you want myself or staff to address in the separate discussion on the financials? From: MaryEllen O'Neill [mailto:maryelienoneill@hotmail.com] Sent: Monday, August 22, 20118:57 AM To: Richard Hahn Cc: Vincent Cameron Subject: August Board Agenda I'd like to request that the lune 30 draft financials be included as a separate discussion item on our August agenda, if that is not already planned. Thanks. 2122 2012 Page I of I Jeanne Foti From: Bob Fournier Sant: Friday, August 12, 2011 10:38 AM To: Richard Hahn; Richard Hahn; Phil Pacino; Gina Snyder; Bob Soli; Mary Ellen O'Neill Cc: Vincent Cameron; Jeanne Fott Subject: FV 11 Draft Report Hallo to all, Attached are some draft figures for fiscal year ending June 30, 2011. The report includes pages 3A, 5 and 6 as well as the budget variance report. I also left a hard copy in your mail box. Enjoy the weekend! Bob From: admin@rmld.com Imailto:admin@rmld.comj _-_-� _--- ---_ — Sant: Friday, August 12, 20115:52 AM To: Bob Fournier Subject: Message from 606W-1 T'2,2012 1 TOAs OF MADT.G, DAS9A .MTTS NDNIC°SAL LTG. DEPARTN6NT USTHISS DRAFT BlR -TTPB PPOVSr% AY PVNO STATrN6N[ OF PlVLMI89. ZXP8N988 MD CNANGCB W 8VM) !RT .9.5 6/30/11 ACNK aUMT 6 YLM TO WT[ YTAA TO DATR VARIMN - CXANGB OPBMTING 08V 3: 19CB P P.11B1 888ER1N101tR 65,869,025.88 60,663,536.00 5,605,6]1.88 13.36% N REV6Mn 40,9]7,068.75 60,112,666.00 866,386.]5 2.15% PUNCSM. POB61 CAPACITT 1,055,106.66 5,366,803.00 (61289.698.361 -80.164 TORYETT6D DISCOUNTS 1,012,284.31 8.0,360.00 141,926.31 16.314 2NOIGT COMMVATION BLVGiVi 500,56].]1 333,228.00 132,660.201 -6.13\ GAN Btv9R1E 60],1]5.64 300,000.00 30],1'15.64 102-394 OA CP®IT 135.105 all 1600 COO.D01 (125, 105 81, 20.954 TC6AL CPDBACIPG BE VE s 89,295,501.12 07,024,609.00 2,210,092.12 2.614 OPYMTIIIG LEPO1888: (8C0 G P.1m) PVRG.= SC °Gee 2],300,316.]6 27,111,576.00 1411.251.241 -1.404 PURCB TONE. YVEL 39,522,230.25 39,512,664.00 9,566.25 0.026 OMMTINO 9,290,513.09 8,636,586.00 633,921.09 1.324 HAINTpIANCE 6,049,792.17 3,095,161.00 952,631.71 30.184 OBPeeCiATTW 3,452,749.55 31500,000.00 (67,251.45) -1.356 VOLUNTARY vAZMNTS TO TOMS 1.330.070.00 1.320.000.00 10,070.00 0.16• TOTAL OPBl1ATINC ETPENSE9 04,943,671.42 83,795,985.00 1,147,686.42 1.37% OV=&TING TNCO6 6,351,829.70 3,228,624.00 1,123,205.70 34.194 NONOPBMTING 88V x IMP9N8881 CONTRIBUTIONS m AID or CONST 696,748.09 700,000.00 (3,251.11) -0.464 RETURN ON INVBSTI TO MAD.. (2,543,3]0.77) (2,223,000.001 (318,370.771 14.314 INTS"ST NCO L 103,164.63 450,000.00 1346,23157) -76.94\ .MST 2E 99 12,004.69) (12,000.001 9,095.31 -83.299 OTSER (WM AND MOST) 176,750.30 120,000.00 56,750.30 41.291 TOTAL NONOPSRATSNG MV fSTS) (1.568.111.041 (967,000,00) 1601.111.84) 62.166 CNANGE IN NST ASSETS 2,783,717.86 2,261,624.00 522,093.86 23.084 MT A89STS AT BEGINNING OP YE 90,819,664.61 08,039,716.12 2,700,148.49 3.164 NBT ASSETS AT = OP JUNE 93.603.592.41 90.]01.340.12 3.302.243.35 3.664 • 1 1 ACTUAL UxoM BUDGET TOM =LIRMRLOLIGM DXVM lOftRi9 DRAFT SAI26 Or KILO PTT Ha 6/30/11 MRRN 6 HI T YCM CORRIIIS Y6AA Y1D i 9AL98 Or 6LL'CTRICITY: LAST SERA CORRIIIP YHAR TO RATS TO DAM CHAHQ RESIDENTSAL SALES 20,229,316 20,315,820 246,312 681 260,162,137 5.62% CUM, AHO INDUSTRIAL UTMS 36,210,646 34.806,223 606,009,794 416,495,791 2.58% PRIVATE ST=ET LICNTINO 70,918 72,139 952,109 8651495 1.57% TOTAL PRIVAT[ CONRL M 56 510.940 55 194 1B2 653.114.384 611.524.023 3.73% NW.ICIM SALES: STREET LZGHTIHO 238,853 239,052 21952.096 2,866,615 0.51% HUNICI9AL SUILOING9 760,191 791,409 91840,419 9,929,192 0.90% TOTAL M XIM CON9'J m 999.D34 a 030 461 12.692.819 12.195 857 0.91% SALES POR R[SA 844,455 1,111,696 31819,995 4.294,194 12.15% SCHOOL 1,260,882 1,254,086 14,703,446 16,609,581 -0.64% TOTAL MI TT HOURS SOLA 59.615.311 19.591.021 694,390.939 109.213.661 3.63% • • [f) mNxcx uDLIGM D:M�5 DRAFT RILCWTT XWBB solo BY TpXX 6/30/11 TOTAL PEADIXB LY := NO.B 1= ylyQpCIGN MOYStl RS➢IDMT.1 20,315,820 6,030,986 31308,199 4,273,763 6,702,890 0486 l = 36,806,223 3,365,)2) 270,268 5,407,651 25,742,5)) PVT BT LIGHTS 72,139 16,081 1,360 21,600 35,896 POB ST LIGHTS 239,052 80,636 32,637 39,980 06,299 % 852703 791,609 171,732 132,633 175,132 312,112 SALSsim5 1,111,696 11111.696 0 0 0 SCHOOL 1,256,096 169,768 283,663 167,680 353,415 TOTAL 59.391.02511.264.606 f.O2B.ilp 10.085.288 ]3.2]3.191 SM TO OATS M"DWp 260,162,731 81,652,319 36.936,826 60,316,637 81,457,155 CON 6 xem 616,495,791 50,979,171 3,369,056 63,219,1$3 298,947.611 evT ST LIGHTS 865,695 168,210 16,320 253,889 127,D76 PUS ST Lx<HTS 2,866,675 965,232 369,396 477,047 11035,000 MWI IIDG0 9,029,182 2,659,252 1,714,604 1,993,058 3,562,399 SAt1;8/NS9A[i 4,286,196 6,286,194 0 0 0 9CNNL 16,609,587 5,179,566 31119,600 1,926,520 6,385,901 T%'11L 709.313.661163.687.911 65.326.182T2s.196.101 389.813.131 LINT SEAP TO ➢A^9 P SMMTT1 206,312,601 76,962,061 35,091,633 56,782,959 77,676,265 CDM 9 Rm 106,009,796 69,369,109 3,239,045 63,231,077 289,950,563 WT ST LIGHTS 852,109 167,216 16,320 251,340 617,233 DD• ST LIMS 2,852,096 969,067 303,626 476,295 1,033,309 XpNI a1D0$ 91010,716 2,626,960 1,667,323 11868,046 3,678,381 S.S/RS9A1.tl 3,819,995 3,619,993 0 0 p 9CHOOL 16,703,166 5,348,733 3,017,663 11913,160 6,626,110 TOTAL 686. PD 8 9 +a9.tla 132 U.616.990 126.322,8)) ]76.979,860 RSL4ATT Wb SOLD TO TOTAL 1T3AL HLAOIN9 LLMRStLO NO.91: xm NIL10CT41 NONTX m2.nWTIA6 34.67% 10.29% 5.63% 7.29% 11.14% COM 6 IM 59.61% 9.781 0.66t 9.23% 63.96% PVT eT LIGHTS 0.12% 0.02% 0.00% 0.06% 0.06% PU9 aT LIGN18 0.61% 0.16% 0.06% 0.07% 0.14% NOMI =08 1.351 0.29% 0.23% 0.30\ 0.53% HALes/RSH 1.909 1.900 0.00% 0.004 0.00% 9OXOOL 2.16% 0.771 0.0% 0.29% 0.606 TOTAL 100.00% 19.19% 6.B6Y 17.22% 56.71% YGR TO ➢AT3 HSSIOSNTLAL 36.68% 11.48% 3.21% 8.50% 11.69% COM 6 IM 96,73% 7.194 0.47% 8.91% 42,16% WT ST LIGHTS 0.12% 0.02% 0.00% 0.04% 0.01% eDtl ST LIOUT8 0.611 0.16% 0.05% 0.07% 0.13% tUMi N l 1.60% 0.37% 0.24% 0.20% 0.51% 5ALt6/RS6A[i 0.60% 0.601 O.OG% 0.00% O.OD% .c.00L 2.06% 0.73% 0 14% 0.271 0.62% TOTAL 100.09\ 20.5]% 6.61\ 19.974 51.994 TO D %NAR TO ASs A[sIOWTLA4 35.99\ 11.25\ 5.131 8.30\ 11.31% COM 1 Ilm 59.32% 7.24% 0.48% 9.26% 42.36% WT ST LLCNTS 0.12% 0.021 0.00% 0.01% 0.06% M4 9T LIONTS 0.42% 0.16% 0.06% 0.07% 0.15% HUNS MOOS 1.66% 0.38% 0.21% 0.27% 0.55% 9ALS8/RtsA:.i 0.56\ 0.56% 0.00% 0.00% 0.00% 9CX- 2.15\ O.70% 0.16% 0.28% 0.65% * PAL 100.0_9\ ]0.37\ 6.35\ 18,20\ SS.OB\ HI CE FOR PERIODTENDING JUNE REPO FOR DRAFT DIVISIONS AND DEPARTMENTS ACTUAL BUDGET VARIANCE CHANGE ZNGINERRING AND OPERATIONS; eco MOR 199,902 202,420 (2,519) -1.24% ENGINEERING 474,229 457,828 16,401 3.59% LIM 2,400,522 1,989,601 410,921 20.65% METER READING 72,072 64,358 7,714 11.99% METER TECHNICIANS 310,116 403,021 (172.905) -35.Bot STATION OP 555,868 611,643 44,225 6.64% STATION TECHS 1,626,260 885,279 740,981 83.10% DIVISION TOTAL 5,630,960 4.594.149 1,044,819 22.70 EMRGT SEWIMS DIVISION TDTAL 1 130,883 1,235,006 4104,123) -8.43% LPJA"BLL-MANAML GENERAL MANAGER 494,156 365,328 128,828 35.26% HUMAN RESOURCES 126,322 2D4,964 (18,642) -38.37% COM4UNITT RELATIONS 144,405 175,712 (31,307) -17.82% CM 4,599 15,000 (10,401) -69.34% BOARD 3,664 7,500 (3,036) -51.14% • DIVISION TOTAL 773.146 760,504 4,642 0.6O% malLimmanazEll GENERAL BENEFITS 3,037,176 2,053,915 983,261 47.87% BUILDING MAINTENANCE 635,989 696,532 (60,543) -0.69% MATERIALS MANAGEMENT 334,149 340,615 (14,466) -4.15% DIVISION 'TOTAL 41007,315 3,099.063 908.252 29.31% BLBIN¢9A DIVISION: ACCOUNTING 728,412 166,852 (40,440) -5.26% CUSTOMER SERVICE 460,004 662,549 (202,545) -30.57% HIS 564,420 594,993 (20,564) -3.52% MISCELLANEOUS DEDUCTIONS 7,363,361 1,095,617 267,744 3.77% DIVISION TOTAL 9.116.197 9,112,001 4,195 0.05% DIVISION TOTALS 20,666,508 18,808,723 1,857,765 %A9% PURCHASED POWER - BASE 27,300,317 27,111,574 (411,257) -1.48% PURCHASED POWER - FUEL 39,522,230 39.512,664 9,566 0.02% • TOTAL 87,489,055 86,032.961 1,456,094 1.69% Reading Municipal Light Board of Commissioners Reaular Session 230 Ash Street ATTACHMENT 5 Reading,MA 01867 rj August 31,2011 Start Time of Regular Session: 7:35 p.m. End Time of Regular Session: 8:59 P.M. :Attendees: Commissioner,; Richard Hahn,Chairman Philip B. Pacing Vice Chair Mary Ellen O'Neill,Secretary Robert Soli,Commissioner Absent:Gina Snyder,Commissioner Stuff; Vinnie Cameron,General Manager Beth Ellen Antonio, Human Resources Manager Jeanne Fort,Executive Assistant Robert Fournier,AccountinWBusiness Manager Jane Parenteau, Energy Services Manager Kevin Sullivan, E&O Manager Citizens'Advisory Board Tony Capobianco,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 RMI-D'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 "Iturman Hahn reported that Commissioner Snyder will not be present at the meeting this evening,Commissioner O'Neill 1 be the Secretary and Commissioner Pacino is en route. Introductions There were no members of the public present,and the CAB representative,Tony Capobianco had no report for the Board Approval of July 27,2011 Board Minutes Ms.O'Neill made a motion seconded by Mr. Soli to approve the Regular Session meeting minutes of July 27, 2011 with the change presented by Mr. Soli, on page three, to add "revenue per kilowatt hour" m the last sentence in the next to last paragraph. Motion carded 3:0:0. General Manager's Report—Mr.Cameron Hurricane Irene Mr. Cameron stated that the storm hit this weekend and he wanted to thank all the RMLD employees who worked diligently to reverse the effects of Hurricane Irene. There was quite a bit of damage in the service territory, Reading, North Reading, Wilmington and Lynnfield. Mr. Cameron reported that on Sunday. August 28 at 7:00 a.m. the crews had their first call and power was restored to all customers by Monday,August 29 at 11:00 p.m. The employees were out working on system issues during the storm. Mr.Cameron wanted to thank RM LD's customers who lost power for their patience during the storm. Chairman Icahn echoed Mr. Cameron's comments because at least one utility, as noted on the 6:00 p.m. news, reported (hat 88,000 customers have been out for one to two days which is tough. Chairman Hahn thanked the staff at the RMLD for all their efforts during the storm. RMLD Employee LeeAnn Framni Mr. Cameron said that RMLD employee LeeAnn Fram i who worked as an Accounting .Assistant in the Accomting Department at the RMLD passed away a few weeks ago. She had worked at the R.AILD for ten ,years and was a loyal, heated employee whose passing greatly affected the RMLD staff. She was a well liked employee who will be missed. IL Kegular Session Meeting Minutes 2 August 31, 2011 General Manager's Report—Mr.Cameron Northeast Public Power Association(NEPPA)Conference Mr. Cameron reported that the NEPPA Conference in Maine was well attended with very good subjects discussed such as renewables and federal legislation issues. Mr. Cameron said that Mark Spitzer, FERC Commissioner, spoke about what is going on in Washington with respect to energy regulation. Chainmen Hahn pointed out that Commissioner Patina had previously mentioned the review by the Accounting Board about a possible switch to the International Standards which may be imposed on utilities. Chairman Habn said that there was a video distributed by the Chief Accountant at FERC who is opposing this because it would burden utilities with tremendous cost to convert their systems. Chairman Hahn commented that Mr. Pacino asked Mark Spitzer,who did not plan to talk about this,a question about this issue. Chairman Hahn stated that Mr. Spitzer was favorable towards Mr. Pactno's position on this issue. Chairman Hahn mentioned that Mr. Spitzer's remarks arc refreshing. Mr. Cameron added that NEPPA's Long Time Distinguished Service Award was presented to Commissioner Pacino. The award is reserved for commissioners who have served a long time on a municipal light board. Mr. Soli reported on the following that was covered at the NEPPA Conference: NEPPA's lobbyist in Washington,DC and the FERC Commissioner pointed out that Congress is the most dysfunctional they have ever seen and with that the greening of the energy field has virtually disappeared from the national were. Coal is in favor. There are two new potential nuclear power plants underway; however, it is unlikely that there will be more due to the recent events in Japan and the uneconomical cost of building. Renewables are going to be hard to achieve except for solar on rooftops which has a huge potential. It was stated that the 25 year prediction for the decay of the utility infrastructure was related to the nation's low rate of underground wires. New York City's power is largely underground and as a result, had very few power outages compared to other states during the recent hurricane. Underground sounds like a good thing. It was pointed out that the ISO structure is not really successful and is not achieving the ends the FERC wanted, however, them is no other structure to replace it. Groton Electric Light Department presented its Smart Grid program which includes a staff of ten with five thousand residential customers. The smart meters afford them power outage indications, performing trouble-reporting, transformer sizing for the peaks,daily meter reading and peak delay. This has resulted in only one blown transformer for their July peak. Mr. Patina entered the meeting at this point. Reading Fell Fair Mr.Cameron reported that the Town of Reading Fall Fair will be on September I 1 downtown. There will be a moment of silence in memory for the victims of 9/11. RMLD Historic Calendars �! Mr.Cameron said that the RMLD historic calendars are being worked on. Mr.Pacino showed the NEPPA's Long Time Distinguished Award he received at the NEPPA Conference;he said that he was honored and thanked the Board and the voters in Reading for their support. Ms.O'Neill thanked Mr. Salt for his report on the NEPPA Conference. Chairman Hahn asked if the slide presentations shown at the NEPPA Conference are available. Mr.Cameron responded that he will check with NEPPA and ensure the presentations are on their website. Preliminary Draft Financial Report—June,2011—Mr. Fournier(Attachment 1) Mr. Fournier reported that the auditors from Mclanson& Heath were at the RMLD the week of August S. The draft numbers have not changed to date nor does he expect them to change. Mr. Fournier stated that Change in Net Assets or Net Income was$2,753,000 which represents 6.44%of RMLD's allowable 89,o return. Kilowatt hours sales increased 25 million from last year or 3.63% at 709 million kilowatt hours. The Budget Variance report by divisions was over budget by $I.S million or 10°6 which is attributable to the increase in the pension contribution amount;$100,000 was budgeted and$1 million was transferred into this fund in June per Board vote. Regular Session Meeting Minutes 3 August 31,2011 Preliminary Draft Financial Report—June,2011—Mr. Fournier(Attachment 1) Mr. Fournier reported that the soil remediation expense $600,000 was budgeted and the actual cost for FYI I was $1.4 0iilion. Melanson$ Heath will make their formal presentation to the Audit Committee and to the Board in September. Mr.Fournier addressed questions submitted by Commissioner O'Neill: The budgeted amount for line labor expense (account 581-1) was $377.306. The actual expense for FYI I was $524,774 resulting in the line labor expenses being over budget by S 147,468. These labor costa represent weather related dead time, (mining,vacations,and sick time. Overhead labor is over budget due to the capital labor offset. Station Tech Budget is over budget by$740,000 because of the Gaw Substation soil remediation project,which was budgeted to be$600,000 but came in at $1.4 million. General Manager's budget is over budget by$128,000 due to the MMWEC arbitration. General Benefits pension contribution was budgeted to be $100,000 but an additional SI million was awarder ed in June. The capital work overhead distribution credit came in at$200,000 less than budgeted. Mr. Fournier reported that the total cost of the Gaw soil remediation project which began in September 2009 is a little less than$2.5 million. Mr. Fournier said that the rate surcharge instituted in FYI I for these costs has recovered$607,000 to date. The energy conservation charge started in October 2008 has collected $1.475 million to date. The RMLD has spent $1.3 million on enargy conservation programs,which leaves a balance of$171,000 at the beginning of FY12. Chairman Hahn asked if the RMLD Board Audit Committee needs to meet with the Town of Reading Audit Committee in September. Mr. Puma responded that the RMLD Board Audit Committee will meet with the Town of Reading Audit Committee at 6:30 p.m.prior to the September Board meeting. Ms. O'Neill asked about the Purchase Power Capacity, how it is used and how the Board is kept informed of this. Mr. Cameron explained why the Purchased Power Adjustment Charge (PPAC) was calculated and went through how it adjusts for Fluctuations in the Base Capacity costa. Mr. Cameron said that the PPAC is beneficial in that it keeps the RMLD from filing rate increases when there is an increase in the Base Capacity Costs. Fournier said that he would have the draft July statement with the revenues to the Board tomorrow. ower Supply Report—July,1011—Ms.Parenteau(Attachment 2) Ms. Parenteau reported on the Power Supply Report for July 2011. Ms. Parenteau reported that RMLD's load for July was 75.1 million kilowatt hours,about a 3.7%decrease compared to July 2010. Energy costs were $4.1 million, which is equivalent to $.0550 per kilowatt hour. The July Fuel Charge was set at $.0600/kWh. RMLD sales totaled approximately 67.5 million kilowatt hours and, as a result, the RMLD undercollecled by $160,000 resulting in a preliminary Deferred Fuel Cash Reserve balance of$2.9 million, which takes into account the June accrual based on end of year financials. In August, the Fuel Charge Adjustment was decreased by one half mill to$.0550 per kilowatt hour and in September will be decreased 5.05 per kilowatt hour. Ms. Parenteau reported that the RMLD purchased approximately [6.7%of its energy requirement from the ISO Spot Market at an average cost of 5.049,kWh. The RMLD hit a peak of 170.4 megawatts at 2:00 p.m.on July 22,2011 with a temperature of 101 degrees as compared to a demand of 168 megawatts, which occurred on July 6, 2010 at 4:00 p.m. with a temperature 96 degrees. The RMLD's all time peak was 172.5 megawatts on August 2, 2006. The RMLD's monthly capacity requirement was 199.8 megawatts. The RMLD paid S 1.39 million for capacity,which is equivalent to$7 per kilowatt-month. Ms. Parenteau reported that transmission costs for July were$855,000 a 15.4%increase from June 2011. Discussion followed. Engineering and Operations Report—July,2011 -Mr.Sullivan(Attachment 3) Gaw CPdate MT.Sullivan reported on the Engineering and Operations Report for July 2011. Sullivan said that the Gaw Substation Transformer Upgrade project is complete. Mr. Sullivan stated that in October he will provide the Board with an update once the project is dosed out and all billings have been received. Total soil remediation costs are at$2.49 million. Regular Session Meeting Minutes 4 August 31,2011 Engineering and Operations Report-July,2011-Mr.Sullivan(Attachment 3) Update Mc Sullivanivan staled that for the meter upgrade project as of August 12,meters installed are 8,000. Mr. Sullivan said that the variance report for fiscal year 2012,Project 2-High Capacity Tie 4W I8 and 3 W 8 Franklin Street- is being worked on and the crews have been working on routine construction. There were two new commercial services installed and 22-25 new residential services. A total of 21 new cutouts were installed. Mr. Sullivan reported on the Reliability Report that the CAIDI number is down l l minutes between June and July. The CAIDI roiling average is about the same at 49 minutes for the year. The average July CAIDI is 65 minutes. The RMLD is at 51 minutes,which is the lowest July CAIDI the RMLD has had in six years. The System Average Interruption Frequency Index (SAIFI) is up from .78 to .91 incidents due to 300 more customers that were affected from the previous month for a total of 2,232 customers. The average July SAIFI is 1.05 incidents. The Months between Interruptions(MBTI)increased 26 to 27 months. Mr. Sullivan reported that on July 21 to July 23 there were heat events and total faulted transformers for the month were nine and in August there were two. Ms.O'Neill stated that she had she lost her power for three hours on August 2 during a violent storm late that afternoon. Ms. O'Neill asked if,after such an event, does the staff look at how it played out,could things have been done differently, what worked,what did not. Mr. Sullivan responded that there was a team meeting the morning after the outage where those issues were covered. Mr. Sullivan said that it wait like a perfect storm because at 3:00 p.m. there was nothing on the radar to indicate violent weather so there was no one on standby. Mr. Sullivan explained that every day we consistently listen to the weather report. If there is any mdar that indicates the need, stomia crews will be held while being cognisant of fiscal responsibility. At 6:02 p.m.when the storm occurred there were 2 feeder outages,5 area outages,2 separate circuits out with 2,443 customers being affected. Crews were called in,and there were trees down. It was not a tree that caused the breaker to open,but a lightning strike on the circuit with concurrent damage on that circuit in Reading. Discussion followed. M.G.L.Chapter 30B Bid-Material(Attachment 4) 2012-01 Tree Trimming Mr. Sullivan reported that this bid for tree trimming services was sent out to eight bidders with three responding. Mr. Sullivan added this is a three year bid; 5455,619 has been budgeted in fiscal year 2012. Chairman Hahn stated that the total amount of the bid is an estimate, but not a guarantee based on RMLD's need. Mr. Sullivan concurred but noted that the amount is based on history. Discussion followed. Ms.O'Neill made a motion seconded by Mr. Soli that bid 2012-01 for Tree Trimming Services be awarded to Asplundh Tree Expert Co. for$1,216,145.88 as the lowest qualified bidder based on the recommendation of the General Manager. Motion carried 4:0:0. General Discussion Chairman Hahn said that the General Manager (GM) Committee needs to conduct the annual performance review of the General Manager. Chairman Hahn asked that each commissioner fill out the GM evaluation form and return the completed form to him by September 9. He will collate the information in preparation for the GM Committee meeting on September 13. Chairman Hahn stated that if the Executive Session minutes are the only item for Executive Session and that there are no changes to them, then the Board can approve such minutes in Regular Session. The Executive Session will continue to be posted in the event there are changes to the minutes. Chairman Hahn noted that this approach was recommended to him by Town Hall. I he Board agreed to adopt this approach. Chairman O'Neill requested that money be designated in the next budget for renovations to Station One which is on the National Historic Register. Mr.Cameron stated that this year's budget has$75,000 for a structural study of that building. If am to he refurbished it would be used for storage Chairman O'Neill stated that she would like to have a lobby that would be opened for tours with educational history if possible. Kegular Session Meeting Minutes 5 August 31,2011 General Discussion . Soli showed a book Not-Living Through The Next Fifty Years On Earth authored by Mark Hensgaard which he found Wt library. Mr. Soli said that due to the inattention of Congress to climate change, we will have stronger hurricanes and nds as discussed in this book Chairman Hahn said that the EPA passed the cross state air pollution rule on August 2, 2011 which requires fairly massive reductions in SO2 and NOx emissions from coal planta in 28 states. Although Massachusetts is not one of those states those winds blow this way. Mr. Pacino added that the Republicans have this as one of the ten items to be repealed. Chairman Hahn commented that the predecessor rule was overturned in the courts. BOARD MATERIAL AVAILABLE BUT NOT DISCUSSED Rate Comparisons,August 2011 E-Mail responses to Account Payable/Payroll Questions Upcoming Sleeting, R.MLD Board %leetines Wednesday,September 28,2011 and Wednesday,October 26,2011 RMLD Board Committee Meeting Tuesday,September 13,2011,General Manager Committee Wednesday,September 28,2011 Audit Committee with the Town of Reading Audit Committee Executive Session At 9:35 p.m. Ms. O'Neill made a motion seconded by Mr. Pacino that the Board go into Executive Session to approve Executive Session meeting minutes of July 27, 2011, to discuss MMWEC Arbitration and retum to Regular Session for oummem' Soli,Aye;Chairman Hahn,Aye;Ms.O'Neill,Aye;and Mr.Perin,Aye. don carried 4:0:0. Adjournment At 9:59 p.m. Mr. Pacino made a motion seconded by Ms.O'Neill to adjourn the Regular Session. Motion carried 4:0:0. A true copy of the RMLD Board of Commissioners minutes a,approved by a majority of the Commission. Mary Ellen O'Neill,Secretary RMLD Board of Commissioners if Reading Municipal Light Board of Commissioners Reeular Session 230 Ash Street ATTACHMENT 6 Reading,MA 01867 �.' September 28,2011 Start Time of Regular Session: 7:40 p.m. End Time of Regular Session: 9:50 p.m. Attendees: Commissioners: Richard Hahn,Chairman Philip B. Patin,Vice Chair Mary Ellen O'Neill,Commissioner Robert Soll,Commissioner Gina Snyder,Secretary Staff: Vinnie Cameron,General Manager Jared Carpenter, Energy Efficiency Engineer Jeanne Fort,Executive Assistant Robert Fournier,Accounting/Business Manager Jane Parenteau,Energy Services Manager Kevin Sullivan,E&O Manager Citizens'Advisory Board Arthur Carskatsane,Chair Guest: Frank Biron,Prestdent Melanson Heath&Company,PC Karen Snow,Supervisor,Melanson Heath&Company,PC Chairman Hahn called the meeting to order and stared that the meeting of the Reading Municipal Light Department(RMLD) Board of Commissioners is being bmadcast live at the RMLD's office at 230 Ash Street, Reading,MA. Live broadcasts are C-vailable only in Reading due to technology constraints. This meeting was video taped for distribution to the communityvision stations in North Reading,Wilmington and Lynnfteld. Opening Remarks/Approval of Meeting Agenda There were no suggested changes to the agenda. Introduction, There were no members of the public present.CAB representative,Chair Arthur Carakaoane had nothing to report,however, there will be a Citizens'Advisory Board meeting on Tuesday,October 4,2011 at the RMLD. Presentation of Fiscal Year 2011 Audit Melanson Heath&Company,PC Audit Review—Mr. Frank Biron Mr. Fournier introduced Mr. Biron and Ms. Snow from Melareson Heath & Company to present the audited financials for fiscal year(FY)2011. Mr. Boon stated that he is the President and Ms. Snow has been the supervisor of the audit for the past few years. Mr. Biron explained that the report is in droll form until it is officially accepted by the Board; however,there is the potential that there may be a couple of adjustments. The audit was completed in the last month and the financial statements will not be ready for a couple of weeks. Mr. Biron reported that there was a recent development that occurred which is found in a new Footnote 20 which appears on page twenty-eight and deals with an NST.AR situation. Mr. Biron said that the Footnote was drafted late yesterday and revised today and,as a result,there may be adjustments made to the financial statements. Mr. Biron reported that if not for the NS"rAR situation, the rest of the audit went pretty smoothly. The books were closed and reconciled. The financial statement rellects that the Department had a very good year which is reflected in the cash balances being .strong,balances have been where they have been in the past, and there is neither debt nor bonds payable on the books. Mr. Biron pointed out that the Department started to fund the Other Post Employment Benefits(OPER) liability which is an unusual thing to fund because most municipalities have not funded this; however it is a practice recommended by Govcmmcm .Accounting Standards Board 045. It was a good bottom line for the year with a profit of$s_.7 to$2.8 million liph is consistent with the prior year. Regular Session Meeting Minutes 2 September 28,2011 Presentation of Fiscal Year 2011 Audit Melanson Heath&Company, PC Audit Review—Mr. Frank Biron Mr. Soli asked about the bottom line numbers. Mr. Biron reported that this is found on page seven. In FY I 1 the profit is $2,783,718 and in FYIO it was$2,780,148. Mr. Baron said that the revenues arc up because more kilowatt hours were sold during the year by 3.5%and the revenue is up 3.5%. The cost of power was down during the year which contributed to the profit however, an additional $800,000 was paid into the retirement system. The reason behind this payment is due to the poor investment results based on the economy over the past few years that impacted the retirement system. The actuaries performed a valuation and determined that more money had to be paid into the retirement system. The Department took S 1 million of its current year's revenue and put it into the retirement system. A year earlier it was only $200,000. The depreciation expense for the year was $3,452,000, a 3% rate in FYI I where in FY 10, it was $2,240,000 a 2%depreciation rate. Chairman Hahn asked on the depreciation rale in FY08 and FY09 it was at 3%, in FYI down to 2%, back up to 3% in FY 11. Ms.Snow replied that it was a one year decrease for the depreciation. Mr. Biron explained the new Footnote, number 20 on page twenty-eight. Mr. Biron stated that in 1979, the Department entered into an agreement with Boston Edison(BECo,now known as NSTAR)for the transmission of power coming into the system. At that time, it was called the radial transmission lines. Part of that agreement was for the Department to pay a $12,000 monthly bill for operating and maintenance expenses relating to those lines. In 2003, this line was reclassified from a radial transmission line to a looped transmission line, where a looped trammission line's costs should have been shared with all utilities in New England. When that happened in 2003,apparently the Department was not made aware of that. The bills continued to come in from NSTAR and were be paid monthly. This came to light this year, in May when the Department discovered what had happened, looked into it and concluded that they should have not been billed on a monthly basis from NSTAR. Our underatanding is that the agreement effective in 1979 was terminated on June 1, 2011, and the payments stopped at that point. The original contract with BECo had a clause that the Department could not go back further than twelve months to contest a bill. However,these bills go back to 2003. Under the ISO-NE for Regional Network Service the Department was able to obtain eighteen months of rebates for the Radial Line Support bills. ISO-NE would credit the Department's transmission costs to make up for that eighteen month period over the next two years, which exposures to approximately$220,000 oFcredits. However,what is lost is the rest of those months from 2003 to 2009 for$1,072,000. This issue is included in the Footnote and they may have to book a receivable for$220,000,but Melanesian Heath will look inm this in more detail. Chairman Hahn asked Mr. Cameron if he wanted to add anything. Mr. Cameron stated that Melanson& Heath did a good job of summarizing this and spent a lot of time understanding the issue,which was not easy to understand. Chairman Hahn asked if the statute of limitations is part of the rate schedule that ISO files with the FERC. Mr. Baron replied that the original contract was from 1979. Chairman Hahn asked if the Department signed this. Mr. Biron responded that he has been told it is signed,but has not seen it. Mr. Biron explained that this issue came to light this week. It may require a couple more revisions. Ms. Snyder said that based on the prior discussion it seemed that this has been thoroughly vexed by the attorneys for any other recourse. Mr. Biron responded that he has copies of documentation that went back and forth however;he was not part of that process. Audit Committee—Vice Chair Pacino Mr. Pacino reported that the RMLD Board and the Town of Reading Audit Committee with representation from the following Town of Reading committees: Chairman of the Finance Committee, representative of the School Department, the Selectmen's representative and the Vice Chairman of the Finance Committee met prior to the Board meeting. Mr. Pacino stated that there was much discussion about Footnote 20. The Town of Reading Audit Committee in the motion to accept felt that Footnote 20 is required to be pan of the final audit in the financial suacmems. Mr. Pacino said that there was also discussion on the decrease in the return on investment to the town; the question about the CPI decreasing during the year and whether there should have been a corresponding decrease in the payment to the town.The Department will look into this. %it. Pacino added there was a lot of discussion about the 51.072,000 overpayments and he is unsure if this should be addressed under the General Manager's Report and the root causes because he would like to know more about this. Kegular Session Meeting Minutes 3 September 28,2011 Audit Committee—Vice Chair Pacino Mr. Pacino reported that the Town of Reading Audit Committee voted that the audit be accepted with the proviso that Footnote 20 is in there and that the issue on the rerun to the investment to the town be resolved. On the return on estment, there is a committee that exists consisting of two members of the Citizens' Advisory Board,two members of the LD Board and one member of the Reading Board of Selectmen. Mr. Pacino said that the Vice Chairman of the Finance Committee said that this is something that should be looked at. Mr. Pacino believes the last time this was put in place was 1997 and there may be information they will be looking for from the Department. Mr. Pacino said that he and Mr. Soli voted to accept the audit with the same provisos that the Town of Reading Audit Committee had to recommend the audit to the RMLD Board. Chairman Hahn clarified that the CPI went negative. Mr. Pacino replied,yes. Mr.Cameron said that the CPI for the period 2009 to 2010 went negative. At a Board meeting in 1997, it was voted that the payment to the Town of Reading would be based on the 1997 Town Payment and it would be adjusted by the Boston- Brockton. Nashua CPI. Mr. Cameron does not remember anything in the motion sating that the Town Payment could not decrease. In that year(2009 to 2010) it went negative,the town's payment decreased by S 16,000. Mr. Pacino commented that his recollection is that the payment was not to go down,however,Mr.Cameron is going to check the documentation. Mr. Cameron said that he will gel that information to the town. Chairman Hahn asked for clarification on this issue. On another matter, Ms. O'Neill asked when the Retirement Trust is going to be discussed next and would like to know when rhe quarterly update will be provided. Mr. Fournier responded that the Retirement Trust will be discussed at the October RMLD Board meeting. Mr. Pacino made a motion seconded by Ms. Snyder that the RMLD Board of Commissioners accept the audited financial statements presented by Melanesian Heath and Company for the fiscal year ending Jame 30, 2011 with the provision that Footnote 20 be included;revised as needed,and that the issue with regard to the payment to the town be clarified. Ms. O'Neill asked in terms of the town do they want clarification or reevaluation of the town payment. Mr. Pacino Cponded that it could be a $16,000 liability not picked up in the finss financial statements. Chairman Hahn stressed that he old prefer to see the document that definitively shows the CPI calculation. Ms. O'Neill clarified that in terms of the CPI the RMLD has been working on that since 1997 do they want it to be reevaluated. Mr. Pacino commented that the issue is whether more money should have been paid out and whether there is a liability out there for that difference. Chairman Hahn said that he is unsure why the CPI issue could not have been resolved before this evening. Ms. O'Neill pointed out that the town was aware of the decrease Iasi January or February; she does not understand why that is an issue now and does not agree that there is any liability. Ms.O'Neill said that she is open to looking into a reevaluation of the formula; however, we need to play by the rules unless they are changed. Mr. Soli asked if there would be a hardship if there is a$16,000 liability change for Melanson Heath to include. Mr. Biron replied, no. Mr. Biron said that they would need to see the original document,and it would be a simple adjustment or if it remains the same no adjustment is required. Chairman Hahn said(hat this evening is the first time he has heard of this issue and is surprised it is surfacing at the last minute because the adjustment is always based on the CPI. Chairman Hahn commented that it should not affect the statements. Mr.Cameron said that the(own was informed in April. Ms. O'Neill asked if the town's representative is going to send a teller requesting this. Mr. Pacino responded that the only request that was made was for the documentation on how the return on investment is calculated. Mr. Cameron said that Marcie West asked that this information be sent to Bob LeLacheur and he would send it to the appropriate people. Chairman Hahn said than this may raise discussion going forward on the CPI. Mr. Pacino added that it may and the Town of Reading Audit Committee mentioned that they may hire a consultant on their side because of it being based on the CPL Ms. O'Neill made a motion seconded by Ms. Snyder that the RMLD Board of Commissioners amends the main motion to delete"and that the issue with regard to the payment to the to"be clarified." Manion carried 3:1:1. Vice Chair Pacino voted against,Mr.Soli abstained. �(Mr Pacino made a motion seconded by Ms. Snyder that the RMLD Board of Commissioners accept the financial statements '(, , nted by Melanson Heath and Company for the fiscal year ending June 30, '_011 with the provision that Footnote 20 be MWluded with revised as needed in language. Motion carried 5:0:0. Chairman Hahn thanked Mr. Biron and his. Snow for their hard work,sen ice,and patience. Regular Session Meeting Minutes 4 September^_S,2011 Quarterly Conservation Program Update—Mr.Carpenter Mr. Carpenter presented his quarterly Energy Conservation Program update. Mr. Carpenter addressed the following: Residential Time of Use Growth.New Project Update,Demand Response Update and Energy Saved from Energy Efficiency programs. Mr.Carpenter reported that the Residential Time of Use program was in the April-May edition of the In Brief, In 2009,there were 30 new customers, 33 in 2010 and 50 in 2011 on a calendar year basis. The red customer cards that were secured through the RMLD's mass mailing are being used to set up e-mails on energy savings tips. Mr. Carpenter stated that on the new project updates, the residential vegetable oil generator for I0kW is up and running which puts out 6.0 to 6.5 kW. The 75kW solar array in North Reading should be completed by October IS. There have been multiple 50kW peak reduction projects completed. There are more L.E.D. and induction lighting projects. Mr. Soli asked about the induction lighting. Mr. Carpenter responded that they have received induction lighting for this building. Mr. Carpenter explained that induction lighting costs a bit less than L.E.D. lighting and lasts twice as long for 50,000 hours whereas induction can last for 100,000 hours. Their energy use is very similar as well as their efficiency. Mr. Carpenter reported on the Demand Response in that they were able to predict the annual peak day and time to call an event without technology to do it for an event. They have identified customers who are willing to partake in the demand response program. There was monitoring equipment installed at the RMLD as a test. Currently, there are customers that have contracts for demand response with ISO New England for 5 megawatts. The RMLD has to decide by 2013 if they want to replace third parties with something else. Mr. Carpenter said that kW saved is estimated on the energy efficiency programs at 5,000 going back to 2005. The RMLD has rebated $1.54 million to commercial and residential customers. The net present value of savings through 2027 is $13.5 million. Ms.O'Neill commented on the Time of Use rate what is the total number of residential customers. Mr. Carpenter responded that the total number is about one hundred ninety. Ms.O'Neill asked besides the In Briefwhat else has been done to promote this program. Mr. Carpenter said that the e-mails to RMLD's customers who provided them were one of the mechanisms to ' draw interest in this program; however, it was not easy to implement. Ms. O'Neill suggested going forward the approach to take is consumer education on both the residential and commercial side, including utilizing RCTV which has an advertising loop as a public service announcement,presenting a half hour energy program for ail the community televisions the RMLD serves on energy conservation,rebates and Time of Use rate. Such programs can be timely based on the time of year. Discussion followed. Mr. Soli said that when the year Time of Use rates were changed it was agreed that a report on the new rales would be made to the Board in six months. Mr. Cameron aid that he will provide the residential and commercial customer information at the November or December meeting. Mr.Carakateane stated that the CAB expected to get a report on the Time of Use rates at the end of the year. Approval of August 31,2011 Board Minutes Ms.Snyder made a motion seconded by Mr. Pacino to approve the Regular Session meeting minutes of August 31,2011 with the changes presented by Mr. Soli,on page two,two paragraphs above Reading Fall Fair in the second line,trouble reporting, put in a hyphen between them, last sentence in the paragraph add 'only' before one, page three delete, 'by an additional one half mill' and page five the first paragraph first sentence a0er*Ho(',put hyphen in. Motion carried 4:0:1. Ms. Snyder abstained. Report of Board Committee-General Manager Committee—Chairman Hahn General Manager's Evaluation July 1,2010 to June 30,2011 Chairman Hahn reported that the General Manager Committee is charged with the task of reviewing the General Manager's performance during the fiscal year for which a performance plan has been set as well as making a salary recommendation based on that performance to the Board. Chairman Ilahn staled that also, a performance plan has been proposed for the next fiscal year. In fiscal year 2011, there were scven categories that the General Manager was rated on which cover all aspects of the operations of the RMLD. Chairman Hahn stated that each commission member was asked to till out the evaluation form which was assembled into a rating summary. Chairman Hahn stated that the scores assigned the General Manager's performance plan ranged from Wo to 4h°b with the acemge at 93.h%. According to the formula utilized, in the 2011 performance plan a score of 90%or greater with the CPI of that year plus the CPI of 2°6 translates into a 5.1's increase. Hagular Session Meeting Minutes 5 September 28, 2011 Report of Board Committee-General Manager Committee—Chairman Hahn nerd blana' rb Evaluation July 1,2010 to June J0,3011 airman Hahn pointed out that this comes a0er a year when the General Manager was awarded no increase largely due to the economic conditions that the'MLD faced(done on the General Manager's recommendation). It was not performance- based because performance was excellent. The 5.1% represents an increase over two years of 2.5 0. Chairman HaM said that the performance plan for FY 12 has red line changes in il. Chairman Icahn said that changes have been made such as a comment section under the rating categories,per Mc Pacino's request; and we are seeking guidance on what an appropriate score maybe. Mr. Soli had suggested a study on making the system hurricane proof and a was something the committee did not want to add now. Ms. Snyder made a motion seconded by Ms. O'Neill that the RMLD Board of Commissioners approve that the General Manager's salary be increased by 5.1%retroactive to July 1, 2011,based on the General Manager's performance review for the period 7'1,10 through 6/30/11. Motion carried 4:0:1. Mr.Pacino abstained. Mr. Soli said that there arc two items:the first is the rating and the second is that there is no motion for the performance plan for the next fiscal year. Chairman Hahn replied that is correct. Ms. Snyder made a motion seconded by Ms. O'Neill that the RMLD Board of Commissioners approve the FY12 performance plan for the General Manager. Motion carried 5:0:0. Mr. Soli made a suggestion to have a twenty-five year plan to make the system more resistant to hurricanes and ice storms. Discussion followed. Mr. Soli made a motion seconded by Ms. Snyder to add to Section III of the FYI performance plan for the General Manager. The Reliability of the BUILD System,a new item,number 8: To propose a budget for funding a twenty five year n for increasing the RMLD's resistance to hurricanes and ice storms. lion carried 4:0:1. Chairman Hahn abstained. Ms.O'Neill made a motion seconded by Mr. Snyder that Section IV. Manage Employees,Item 5;be amended to read "Submit a report to the Board on the safety incidents at the RMLD by December J 1 at." Motion carried 5:0:0. Mr. Soli made a motion seconded by Ms. O'Neill that Section IL Energy Efficiency and Load Management, add Item 7. Propose budget funding to decrease the RMLD energy use at the 230 Ash Street complex by at least 5%in FY 13. Motion carried 5:0:0. General Manager's Report—Mr.Cameron Mr. Cameron stated that he wanted to mention to the Board that a of transfer of$500,000 from the Operating Fund to the Rate Stabilization Fund was made and is found on page nine. This transfer was executed in response to one of his performance items in that the Rate Stabilization Fund needs to be at a level of$6.0 to$7.0 million. That leaves$6.5 million in the Operating Fund,which is adequate to pay the bills on a monthly basis. Reading Fall Fair RMLD employees Mr.Carpenter and Mses.Gottwald and Hanifan were at this event. There was a great turnout and interest at RMLD'. table. There were questions on billing, conservation, and the operations at the RMLD. .attendees at this event were eery complimentary about the RMLD. RMLD Calendar The RMLD calendar will be out within the nest month. The RMLD will communicate the date the calendars are available. RMLD.Annual Report a.Lhe RMLD Annual Report is currently being worked on and will be available at the Subsequent Town Meeting. Mr, ern explained that in the past the Chair of the RMLD Board has presented the report to Subsequent Town Meeting ch will be held on Monday, November 14. Chairman Hahn is not available to make the presentation; Vice Chair Pacino will make the presentation. Regular Session Meeting Minutes 6 September 228.2011 General Manager's Report—Mr.Cameron Mr. Pacino said that he understands by Footnote 20 came about, however he would like an explanation. This is the first time they have seen this,and it has not been seen by the Board before. He would like an explanation why, there were legal costs that went on here, there was no discussion with the Board in advance, and he is concerned that the Department leR$1 million on the table that is gone, which negatively impacted the ratepayers and what steps will the Department take going forward to ensure this does not happen. Mr. Pacino pointed out that in the General Manager's Performance items it states that minimum task is to maintain comprehensive coverage on new information related to governmental regulations, financial conditions,technological changes,energy and resource developments as they relate to public utilities. Mr. Patin stated that in Item 1,under 5A Leadership,the General Manager failed on this one to address this. Mr. Pacino asked if there is any other situation that is similar to this within the Department,and if it applies to other situations he wants this addressed as well. Ms. O'Neill suggested this issue not be addressed this evening; it needs to be treated like a case study, what went wrong, where do the responsibilities lie. Mr. Pacino replied that this situation needs to be addressed, it should not occur again, and going forward,to be assured that there are no other situations. Ms.Snyder said that she is in agreement with Ms.O'Neill. Chairman Hahn said that he wants to see - a write up with a detailed summary to be brought to the General Manager Committee within two weeks. There will be input at the committee level on this at the General Manager's Committee. All members of the Board should receive a copy of the report. Mr. Pacino asked if there are any other situations this may apply to. Mr. Cameron replied, no. Mr. Cameron said that the Department looked at its contracts; there arc no other contracts with respect to transmission;and the power supply is straight forward with regard to who is responsible. There are power supply agreements that are firm with other bilaterals or heat rate fuel index contracts. Mr. Cameron reported that there are agreements on the PSA's with MMWEC however,the RMLD is in a dispute relative to the amount of the back up that accompanies the PSA's. Mr.Cameron said that there is nothing out there on the power supply in which this would occur. It has been fully vetted. Mr. Soli commented whether the MMWEC dispute is something the auditors should have been made aware of Mr. Cameron replied that the auditors are aware of the MMWEC issue and a Footnote is found in the financials. Financial Report—August,2011—Mr.Fournier(Attachment 1) Mr. Fournier reported on the Financial Report for August 2011. Mr. Fournier apologized for the tardiness of the Financial Report and noted that until FYI 1 numbers are final,there won't be a full balance sheet. Mr. Fournier stated that for the first two months of the fiscal year 2012 the Net Income was $769,000 bringing the year to date Net Income to S1,467,000 and the budgeted amount was S1,892,000 with the difference under budget being$425,000 or 22.5%. Year to dale Fuel Expenses exceeded year to date Fuel Revenue by 584,000. The Base Revenues are under budget by$449,000 or 4.75%. Actual Base Revenues were$9 million compared to the budgeted amount of$9.4 million. Mr. Fournier said that the Purchase Power Base Expense was under budget by $291,000 or 5.82%. The actual Purchase Power Base cost was $4.7 million compared to the budgeted amount of $5.0 million. The Operating and Maintenance Expense were over budget by $14,000 or .72%. The actual Operating and Maintenance Expense $1.940 compared to the budgeted amount of$1.926 million. The Depreciation Expense and Voluntary Payment to the Towns is on budget. Kilowatt hour sales are 138,858.000 kWh which is 1.1 million or less than 1%behind last year's. Cumulatively,the five divisions are ocer budget by a little less than 54,000 or.12%. Mr. Fournier staled that next month he will be reporting on the quarterly Pension Trust and will present the balance sheet on time. Power Supply Report—August,2011—Ma.Parenteau(Attachment 2) Ms. Parenteau reported on the Power Supply Report for August 21311, Ms. Parenteau reported that RMLD's load for August was 69.6 million kilowatt hours, about a 2.80b decrease compared to August 2010. Energy costs were$3.R million, which is equivalent to 5.0545 per kilowatt hour. The August Fuel Charge was act m 5.055 kWh. KMLD overcollected on fuel by $76.000 resulting in a Deferred Fuel Cash Resene balance of 52.97 nullion. Regular Session Meeting Minutes 7 September 28,1Ijj 1 Power Supply Report-August,2011-Ms.Parenteau(Attachment 2) Aisle Fuel Charge Adjustment was decreased less than $.05 per kilowatt hour in September, and is currently expected to in at that level until the end of December. The Deferred Fuel is forecasted to go a little higher then go down in November and December. Rather than Fluctuate it up and down it was decided to keep it level to maintain consistency, expecting that the Deferred Fuel will be at$2.5 million by December. Ms. Parenteau reported that the RMLD purchased approximately 11.3%of its energy requirement from the ISO Spot Market at an average cost of$41.50 per megawatt hour. The RMLD hit a peak of 144 megawatts at 2:00 p.m. on August 1, 2011 with a temperature of 90 degrees as compared to a demand of 159.6 megawans, which occurred on August 31 2010 at 5:00 p.m. with a temperature 92 degrees. This August was considerably lea mild than last year. The RMLD's capacity requirement which is based on last year's peak was set at 199.8 megawatts. For capacity, the RMLD paid$1.4 million which is equivalent to$7.08 Per kilowan month. Ms.Parenteau repotted that transmission costs for August were 5960,000 an 11%increase from July 2011. Ms. O'Neill asked on the energy chart is the amount on this from Swift River what the RMLD anticipated. Ms. Parenteau responded, yes, that it is a run of the river project so they tend to go higher in the spring and fall whereas in the summer months it is anticipated to come in lower. Ms.O'Neill asked on the transmission costs going up 11% for one month. Ms. Parenteau replied that with transmission the billings are a month behind compared to August last year it tends to come in high because it is based on July's peak. Engineering and Operations Report-August,2011 •Mr.Sullivan(Attachment 3) Caw Update Mr.Sullivan reported on the Engineering and Operations Report for August 2011. Mr.Sullivan reported that there were no changes from July for the Gaw transformer upgrade project Mr. Sullivan stated that the RMLD is in a close out phase and it is anticipated that completion will be in the next couple of months. 0.Sullivan stated that the soil remediation expense remains at$2.482 million. Mr.Sullivan stated that the meter upgrade project to date is 9,200 meters arc installed. Mr.Sullivan said that the variance report projects worked on for the month are: Project 1 -5W9 Reconductoring Ballardvale Street-this has begun this month and all ten poles have been put in by Verimn,and Project 2-High Capacity Tie 4W 18 and 3W8 Franklin Street continues. There were no new commercial services and 25 new residential services were installed. Under routine construction there is a line for storm trouble for the August 2 thunderstorm and Hurricane Irene. A total of 44 new cutouts were installed for a mating total of 65. Mr. Sullivan reported on the Reliability Report that the CAIDI number is up significantly due to the violent thunderstorm of August 2. The CAIDI rolling average is up for the same reason at five minutes for the year due to this occurrence. The System Average Interruption Frequency Index (SAIFI) is down marginally where the rolling average is up marginally. For the month,there were 2,018 customers out,however these figures do not include Hurricane Irene. During hurricane Irene over 15%of the territory was out of service,and the service industry standard is when 15%of the service territory is affected in one incident,this is not included in the stats. The Months between Interruptions(MBTU increased to 26 months. Mr. Sulliwn reported on the outages based on the August 2 and August 28 norms with the number of calls more than 3,500. Incidents for the month were 39, number of customers affected 2.018 with the outage types being feeder outages 2, area outages 34,sen ice outages 2. Feeder outages based on Ilumcane Irene were 14 and 7 incidents of lightning damage. Ms. O'Neill asked for clarification that the standard is if an event occurs when over 15%or more of the territory is affected, those stats are not included. Mr. Sullivan replied that is correct. Ms. O'Neill asked on the variance report in terns of routine construction we have gone through half of the budget in two months and why are we not working on other projects. Mr. ullivan responded that a large amount of this is due to a carry over on one project in routine construction. AWSnyder asked about the 61S GAP analysis report, it mentioned the concept of identifying transformers and poles by customers when outages occur because it tiisters a better response. Ms. Snyder wanted to know when the RMLD will be moving forward with some of the recommendations in the report. Mc Sullivan said that with the new meters that are being installed it will allow for that type of data gathering for oumges. Regular Session Meeting Minutes S September 28,2011 M.C.L.Chapter 30B Bid—Mr.Sullivan(Attachment 4) 2012-10 Disconnect Switch" Mr. Sullivan reported that the bid was sent to nine bidders and seven responded. This bid is for the four remaining disconnect transformers at Gaw which is in the Capital Budget. Mr. Soli asked are the other 13 switches the same. Mr. Sullivan replied, yes that is why the option of factory rep was not utilized. Ms. O'Neill commented that six out of the seven bidders were non responsive. It seems counterproductive. Mr. Sullivan pointed out that when you open the bids you can never be sure what you get. Ms.O'Neill asked if the RMLD's material was !i not accessible and clear. Chairman Hahn stated that if they manufacture a switch with cast parts and the specs state no cast parts,there's no way to ask why did they bid,but that cannot be changed. Ms.Snyder made a motion seconded by Mr. Pacino that bid 2012-10 for 115KV,2000 Amp Horizontal Disconnect Switches be awarded to EMSPEC Electro Mechanical Systems Inc. for a tom]cost of$44,000.00 as the lowest qualified bidder on the recommendation of the General Manager. Motion carried 5:0:0. 2012.11 Three Phase Pad Mounted Dead Front Feed Transformer Mr. Sullivan stated that the bid was sent to 17 bidders with four responding. The bid is for three phase pad mounted dead from loop feed transformers. There is no line item in the capital budget for these transformers because they are"as-signed as required"one in Reading Woods and 10 to Burlington Avenue Condo Project in Wilmington. Mr. Soli asked about Stuart Irby 2, which was thrown out and is it a show stopper! Mr. Cameron responded that in the rules for award you must supply the material specified. Mr. Soli asked if you can seek minor clarification. Mr. Cameron pointed out that bidder must follow the engineering specs. Ms. Snyder made a motion seconded by Mr. Pacino that bid 2012-11 for Three Phase Pad Mounted Dead Front Loop Feed Transformers be awarded to: Power Sales for a total cost of $157,352.00 as the lowest qualified bidder on the recommendation of rhe General Manager. Motion carried 5:0:0. General Discussion There was no discussion. BOARD MATERIAL AVAILABLE BUT NOT DISCUSSED Rate Comparisons,September 2011 E-Mail responses to Account Payable/Payroll Questions Upcoming Meetings RMLD Board Meetings Wednesday,October 20, 2011,Chairman Hahn will not be present. Wednesday,November 30,2011 RMLD Board Committee Meeting Power& Rate Committee Meeting,Monday,October 3,2011 Citizens Advisory Board Meeting 'Tuesday,October 4,2011 at the RMLD Approval oLWgust 31,2011 Executive Session Minutes(Executive Minute Tab) Ms. Snyder made a motion seconded by Ms. O'Neill that the RMLD Board of Commissioners approve Executive Session meeting minutes of August 31,2011 as presented. Motion carried 4:0:1. Ms.Snyder abstained. Regular Session Meeting Minutes Y September 28,2011 +journment *a- 4a0 p.m. Ms. Snyder made a motion seconded by Ms.O'Neill 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 L� QDear Representative/Senator I am writing to express opposition to H.3896, which was voted favorably out of the Joint Committee on Telecommunications, Utilities and Energy. The bill is now pending in the House Ways and Means Committee. There are forty municipal lighting plants ("MLPs') in Massachusetts, of which one of them is the Reading Municipal Light Department (RMLD), which is owned by the Town of Reading. Collectively,MLPs provide approximately 14% of all electricity consumed in Massachusetts. The MLPs were established by vote in individual municipalities or by special act to serve the citizens and businesses in those municipalities.The MLPs have the exclusive right to distribute electricity within the borders of the municipalities they serve. The MLPs me overseen by locally elected or appointed Boards and their operations are overseen by General Managers hued by the Boards. The MLPs establish rates approved by their Boards that pay the costs of the operation of their plant. The RMLD is very proud of the fact that it has historically and is currently providing highly reliable power at the lowest electric rates in the Commonwealth. The RMLD is unique inparison to other MLPs because in addition to the Town of Reading the RMLD serves on, North Reading and Lynnfield Center. ® The RMLD has instituted Energy Conservatio able Energy Programs in its service territory,which provides educational and fin ial a to customers who choose to enact energy conservation measures and ' r w e energy projects. Overall, the local control aspect of Public Power provides aiety benefits to its customers including providing assistance to customers to become m ironmentally friendly and lower their carbon footprint. If H.3896 were to pass, RMLD customers would pay an additional $350,000 per year, or an additional 1% of its base rates, to the Commonwealth for energy conservation and renewable energy projects. The RMLD already provides these benefits to its customers through its Energy Conservation and Renewable Energy Program. In addition, if the RMLD's exemption from the Energy Conservation Charge of $.0025/kWh is lifted then the RMLD customers will be paying $1,050,000 more for the energy conservation programs, which the RMLD presently has in place. In 2008, the RMLD added an Energy Conservation Charge into its rate structure for the specific purpose of funding its Energy Conservation and Renewable Energy Program. Since 2008, the RMLD has collected$1.6 million through the Energy Conservation Charge and it has spent $1.5 million in the form of rebates and incentives to RMLD customers for energy conservation measures and the renewable energy projects. The amount of funds the RMLD commits to its Energy Conservation and Renewable Energy Program is mainly dependent on the economics and the cost/benefits that the elements of the program provide to the RMLD and its customers. The RMLD can adjust its Energy Conservation Charge to meet the financial requirements of its program from time to time. Below is a description of the Energy Conservation and Renewable Energy initiatives that have been instituted: Energy Conservation and Renewable Energy Program Residential Tier 1 and Tier 2 Services The RMLD follows the guidelines of the Department of Energy Resources with respect to providing Tier 1 and Tier 2 services to residential customers. The RMLD has trained its Customer Specialists to answer customer questions on energy conservation. The RMLD also has contracted with a company who performs energy audits for residential customers. Appliance Rebate Program a' In 2005 the RMLD started an Appliance Rebate Program. flits program offers rebates to residential customers who have purchased an Energv Star fated appliance. The appliances in the program include washers, dryers, air conditioners, t pumps, refrigerators, dishwashers, dehumidifiers, ceiling fans, high performarrce waterers, and programmable thermostats. The RMLD has rebated approximately 5250,t10kto 4,300 customers, who have applied for appliance rebates. Residential Time of Use Rate *{' The RMLD offers a Time of Use rate to its residential customers that allow customers to move their electrical usage to off Peak periods to save money on their electric bills as well as helping the RMLD lower its peak demand. The Residential Time of Use Rate has been in effect since 1993. Residential Water Heating Rate The RMLD offers a Water Heating Rate to its residential customers who are willing to have their electric water heaters controlled during peak periods. The RMLD is in the process of upgrading this program and recently received a $50,000 grant from the Massachusetts Department of Energy Resources to assist in the funding of the upgrade. The upgrade will include a demand response control technology. Renewable Energy Projects The RMLD gives incentive payments to residential customers who develop renewable energy projects at their homes. To date the RMLD has given over $64,000 in rebates to eleven solar projects that total 57.2 kW and two cogeneration projects totaling 9.2 kW. Commercial Energy Audits The RMLD provides third party energy audits at reduced rates for customers who want to examine their manufacturing processes to determine if there we energy efficiency measures they can take advantage of that will lower their peak demand and annual energy usage. Additionally, the RMLD Energy Efficiency Engineer who works with customers to provide a detailed audit of specific equipment or the RMLD will help fund a full standard audit performed by an outside auditor. Lighting Rebates RMLD offers lighting rebates up to $10,000 for co. nal customers who upgrade their lighting to more efficient technologies. ® Energy Efficiency Rebates The RMLD offers rebates to customers ins en fficient measures to reduce their peak load and annual energy usage throu ore efficient HVAC systems,variable speed drives, compressed air systems, bulMng con Is, and other more efficient measures. In most cases, these energy efficiency measures ve n recommended by the RMLD through audits, which have been performed by the R or its contractor. These recommendations are dependent on cost/benefit analysis that shows the economic payback to the customer for each recommended energy efficiency measure. Commercial Time of Use Rate The RMLD offers Time of Use Rates to its commercial customers who have the ability to move a portion of their energy usage to Off Peak periods. In doing so, commercial customers are able to lower their electric bills and assist the RMLD in reducing its peak demand. Renewable Energy Rebates Commercial customers who install renewable energy projects at their facilities receive rebates based on the mode of generation and the amount of peak load reduction the RMLD will see on their system. To date,.the RMLD has rebated approximately $30,000 for a commercial solar .� facility of 75 W. The RMLD is working with other solar projects that are in the final stage of design, which total approximately of 300 M Additionally, there is the potential for fifteen other commercial solar projects that have a projected total of approximately 15 MW, The RMLD has an extensive Energy Conservation and Renewable Energy Program and is constantly seeking ways to enhance and expand this program to meet the needs of customers who want to reduce their electricity cost and decrease their carbon footprint. H.38%should be opposed for the following reasons: • H. 38% would mandate an increase in monthly bills to RMLD customers to fund renewable energy and energy efficiency programs. • H.38%would jeopardize RMLD's service territory by mandating that they open their systems to outside generation thus repealing the exclusive service territory provisions of the Electric Utility Restructuring Act of 1997. Rate Setting is the exclusive domain of the individual MLP Boards. The RMLD's rates are not established by the Department of Public Utilities but are examined and approved by its Light Board of Commissioners. This bill is a frontal attac - existing MLP's and local control, which is the essence of Public Power. The RMLD already funds energy conservation pr renewable energy, as you can see above, without the cost increases mandated 1 tiu addition rather than the increased revenues mandated by this bill going tate or its benevolent dispersal, the revenues raised by MLP rates currently are wi a LP territory for the benefit of its customers as determined by the MLP Board f uc ' gs as reliability, infrastructure investment, renewable energy programs and energy e - ency programs. The RMLD has a more informed view of what its customer's desire in the form of energy conservation and renewable energy programs,which enables the RMLD to be more flexible in designing the programs it offers. Section 21 of the bill would mandate that MLPs open their service territory to outside generation by allowing its customers to negotiate directly with generation companies. This means that after each MLP municipality determined to reject the Commonwealth's option to allow outside generation within their boundaries, the Commonwealth would ignore that and impose outside generation in those municipalities. The result would be that the RMLD, which has engaged in long term power contracts to fulfill the usage requirements of its customers, would not have sufficient revenues to pay for those obligations with the approach imposed by H.3896 and would lead to higher rates because fewer and fewer customers would now pay for all historical commitments entered into to provide electricity to all customers. The MLPs throughout the Commonwealth have programs in place to increase their alternative and renewable energy portfolios and continue to expand on those programs as appropriate for their service territory and determined by the MLP Board. While the legislation appears to recognize that MLPs should participate in the future distribution of Regional Greenhouse Gas Initiative "so-called RGGP' monies, over the last four years, MLP's did not receive their share of those funds. Meanwhile distribution companies and municipal aggregators received millions of dollars from the $150 million accumulated in the fund. In any event,increases in the costs to MLP customers under this bill far exceed any return from future RGGI monies. This legislation is touted by its sponsors and supporters as creating competition and allowing choice in the existing electric market. In fact, under this bill, it is likely that very few, if any, municipalities would have the necessary funds to purchase an investor owned utilities distribution system in order to create their own municipal electric utility. The bill released by Committee has boldly morphed into a new revenue stream to create additional energy programs on the backs of MLP customers under the guise of increased competition and choice. I urge you to vigorously oppose this legislation as it would result in the erosion of public power in Massachusetts as well as diminishing both competition and choice in Massachusetts. Dt: February 24, 2012 To: RMLB, Vincent F. Cameron,Jr., Jeanne Foti Fr: Bob Fournier Sj: January 31,2012 Report The results for the seven months ending January 31, 2012, for the fiscal year 2012 will be summarized in the following paragraphs. 1)Change in Net Assets: (Page 3A) For the month of January, the net income or the positive change in net assets was $498,065, increasing the year to date net income to$2,424,272. The year to date budgeted net income was $4,945,104, resulting in net income being under budget by 2,520,831 or 50.98%. Actual year to date fuel expenses exceeded fuel revenues by$603,035. 2) Revenues: (Page 11111) Year to date base revenues were under budget by $1,956,634 or 6.69%. Actual base revenues were$27.3 million compared to the budgeted amount of$29.2 million. It 3) Expenses: (Page 12A) *Year to date purchased power base expense was under budget by$1,025,092 or 6.42%. Actual purchased power base costs were $14.9 million compared to the budgeted amount of$15.9 million. *Year to date operating and maintenance (O&M) expenses combined were under budget by $196,513 or 2.8%. Actual O&M expenses were $6.7 million compared to the budgeted amount of$6.9 million. *Depreciation expense and voluntary payments to the Towns were on budget. 4)Cash (Page 9) *Operating Fund was at $9,618,141. *Capital Fund balance was at $4,010,961 • Rate Stabilization Fund was at$6,068,389. • Deferred Fuel Fund balance was at$2,452,189. • Energy Conservation Fund balance was at $173,774. 5) General Information: Year to date k«h sales(Page 5) were 419,400,557 which is 15 million kwh or 3.46%, behind last year's actual figure. GAW revenues collected ytd were $419,402 bringing the total collected since inception to $1,026,576. 19 6) Budget Variance: Cumulatively, the five divisions were under budget by $234,610 or 2.1%. ATTACHMENT 3 FINANCIAL REPORT JANUARY 31 , 2012 ISSUE DATE : FEBRUARY 24, 2012 TOWN OF READING, NASSACHUSBTT9 MUNICIPAL LIGHT DEPARTMENT BUSINRSS-TYPE PROPRIETARY FUND 14 STATEMENT OF NET ASSETS br /31/12 PREVIOUS YEAR CORAHNT YEAR ASSETS CDXAEXT UNRESTRICTED CASH (SCM A P.9) 6,857,766.85 9,621,191.12 RESTRICTED CASH (SCM A P.9) 15.656,]11.]9 18,301,526.39 RESTRICTED INVESTMBITTS (S CH A P.9) 2.300.000.00 0.00 RECEIVABLES, NET (S CH B P.10) 0,139,935.61 7,SOB,999.01 PREPAID EXPENSES (S CH B P.10) 3,306,0]6.]9 2,310,533.99 INVRNIORY 1,]23,36].67 1,903,358.36 TOTAL CURRENT ASSETS 37.X63.].3 B.]1 39,935.069.35 NONCURRENT INVESTMENT IN ASSOCIATED CO (ECH C P.3) 80,151.26 73,765.66 CAPITAL ASSETS, NET (8CN C P.3) 6],99],387.61 61,859,196.97 TOTAL NONCURRENT ASSETS fi].S15.530.81 6],92],912.63 TOTAL ASSETS 106.619.317.58107.352,961.98 LIABILITIES CURRENT ACCOUNTS PAYABLE 6,898,931.98 6,370,495.64 CUSTOMER DEPOSITS 515,693.30 604,388.69 CUSTOMER ADVANCES BOB CONSTRUCTION 330,793.90 396,339.94 ACCRUED LIABILITIES 1,090,221.95 1,321,183.70 TOTAL CURRENT LIABILITIES 8.]85.199.03 8.390.90].9] NONCURRENT ACCRUED EMPLOYEE COMPENSATED ABSENCES 3,020,032.15 3,934,698.58 TOTAL NONCURRENT LIABILITIES 3.0]0.033.>5 2.939.698.58 TOTAL LIABILITIES 11,805.116.78 11,325.106.55 NET ASSETS INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT 6],447,38].61 6],654,146.9] RESTRICTED FOR DEPRECIATION POND (P.9) 4,790,173.37 4,010.961.89 UNRESTRICTED 10,626,539.81 39,163,746.57 TOTAL NET ASSETS (P.3) 9].811.100.80 96.027.855.43 TOTAL LIABILITIES AND NET ASSETS 101.619.3]].58 301.352,9fi 1.98 T01M OF READING, MASSACHUSETTS MUNICIPAL LIGHT DEPARTMENT NONCURRENT ASSET SCHEDULE 1/31/13 SCHEDULE C SCHEDULE OF INVBSTMENTE IN ASSOCIATED CONPANIBB PREVIOUS YEAR CURRENT YEAR NEW ENGLAND HYDRO ELECTRIC 33,538.60 15,761.66 NEM ENGLAND HYDRO TRANSMISSION 66,613.66 58,018.03 TOTAL INVESTMENTS IN ASSOCIATED COMPANIES BB.151 16 ]).]68.66 SCHEDULE OF CAPITAL ASSETS LAND 1,365,863.33 1,365,863.33 STRUCTURES AND I"ROVEMENTS 6,753,629.88 6,585,553.36 EQUIPMENT AND FURNISHINGS 13,16],136.]9 12,930,140.56 INFRASTRUCTURE 46,360,]80.]1 6],0]3,610.86 TOTAL CAPITAL ASSETS, NET 67 66],38] 61 67,854,146.97 TOTAL NONCURRENT ASSETS 67,535.536.8] 6].9I].913.63 OI TONIC 09 RZAOINO, NASSACB09t'1TR MUNICIPAL LIMIT MPARTNtNT B08INi5R-TY9t PR09RICHANG SONO 9iAitMRR OF R[VBU51 t1PtN9t9 AND CWNOR9 IN JOIN NR ARRBTR 1/31/13 MONTH NOWIN LAST YBAR CURRENT YtAR YTID 1 LAST YtAR CORRIMPT YW TO OATt TO OATS CHANON OPBRATINO RNEMUE9; IRON 0 P.11) BARt RtveNOt 4034,163.61 3,745,3]].16 37,324,930.54 27,280,963.22 -0.16% SOIL REVMOOE 3,639,699.16 311141395.49 35,147,934.40 32,542,547.15 -10.36% PURCHASED P0WER CAPACITY 33,606.08 (10,759.13) 1,156,560.63 (79,673.49) -106.89% SORSEITN DISCOUNTS 94,513.95 87.893.05 613,667.00 566,459.2B -7.69% ENSROT CONSERVATION RWXPUZ 30.397.73 55,711.95 311,149.11 353,307.69 13.52% DAN RNMMUZ 61,534.17 56,637.77 394,545.11 419,402.62 43.39% MPA CREDIT (59.931.36) 151,411.30) (4]7.390.41) (397.014.54) -6.92% TOTAL OPERATING RtV S 7,533,476.33 6.997,609.99 54,431,386.57 50,665,090.93 -6.87% OPBRATINO EEPMSZB: (SCH t 1.13) PORCBAS90 POKER RARB 3,343,845.82 1,970,396.64 16,308,717.33 14,934,346.54 -8.07% PURCHASNO POKER NEL 3,630,614.67 3.336,331.18 34,651,335.51 22,747,761.61 -7.73% OPRRATINO 863,010.77 453,931.67 4,950,034.69 4,969,115.69 0.39% HAINTmmA 655.595.39 383,566.15 3,639,911.03 1,800,631.68 -31.79% DNPRSCIATION 287,719.05 396,037.47 3,014,103.35 3,07],193.]9 3.80% VOLUNTARY PATNENTB TO TONICS 105,885.00 111 000.00 765.885.00 7871166.00 2.78% TOTAL OPERATING t2PW8N8 7,775,880.60 6,453,153.11 51.409,886.00 47,311,139.81 -7.97% OPERATING INCOMN 47,595.73 544,536.88 3,011,499.77 3,373.961.12 12.04% 4ERATING 0.748740743 (BEPMSZBI CONTRIBUTIONS IN AID OF CONST 35.00 3.975.90 34.987.42 31,639.64 7.86% RSTORN ON INVBBTNLIT TO RBADINO (180,990.00) (103,9]9.75) (1,266,930.00) (1,305,808.]3) 1.57% ISTEREBT INCOMS 6,749.10 3.867.39 67,066.73 60,559.01 -9.70% INT9REBT EIP9NBE (1,000.34) (500.3]) (9,294.00) (5,336.99) -43.76% OTHAR (MVS9 AND AMORT) 3,380.00 130,015.09 157,006.37 344,199.43 55.51% I=. NONOPEHATINO REV (EXP) (172,836.24) (46.471.60) 11.017,363.58) (949.689.16) -6.674 CHANGE IN NNT AMIN1135.330.311 499.065.38 1,994,316.19 2,434,373.96 31.567 NBT MINTS AT BEOIIMINO OF IRAN 90,019,864.61 93,603,582.47 3.07% NST A99NTR AT END OF JANUARY 9].814.100.8096.0]7.855.43 3.46% TOWN OF READING, NASSACHD88TTS HLIORT NENT BINESS-TYPE PROPRIETARY FUN D BTASBNEN1OP RN8SURS' EXPENSES AND CHANGES IN FUND NET ASSETS 1/31/13 ACTUAL SUDOET \ OP&AATING REVENUES: (BCH P P.11B) YEAR TO DATE YEAR TO DATE VARIANCE- CHARM, BABE RBVEHUE ]),]80,96].22 39,23),59).00 (1,956,634.78) \ FUEL REVENUE 32,542,547.15 25,])0,846.00 1] )]639885) -6.6-30.699% PURCHASED POWER CAPACITY 1i 9,6J 3.4 , , .9) (0,5)5.00) 3,861.51 FORFEITED DISCOUNTS 566,459.10 -4.62% ENERGY CONSERVATION REVERT, 641,]2).00 176,)6].72) -11.93% CAN REVENUE 353,207.69 325,024.00 17,383.69 8.40%NYPA CREDIT 419,402.62 404,691.00 14,711.62 3.64% (397,914,54) (350,000,00) (47,814,54) 13.66% TOTAL OPERATING REVENUES 50,685,090.93 55,456,650.00 (4,))1,559.07) -8.60% OPERATING 8%P@1889: (8CH O P.1]A) PURCHASED POWER BABE 14,934,346.54 15,959,339.00 (1,035,09].46) -6.42% PURCNASED POWER FUEL 21,)4),76).61 ]3,8)1,456.00 (1,1]3,688.39) -4.]1! HAIOPENATIMTSHAN 41969,115.69 5,332,685.00 (363,569.31) -6.82! DEPRECIATION 1,800,621.68 1,633,566.00 167,055.66 10.23% VOLUNTARY ],0)],19].19 2,100,000.00 (27,807.71) -1.32% VOLUNTARY PAYMEDTB TO TOWNS 787.186.00 )91.000 00 (3.814.00) -0.48% TOTAL OPERATING EXPENSES 47,311,129.81 49,688,046.00 (2,376,916.19) -4.78% OPERATING INCOME 3.373,961.22 5,766,604.00 (2,394,642.68) -41.51% NONOPEMTIWO RW,,OES (EXPENSES) CONTRIBUTIONS IN AID OF CORBY 37,629.64 300,000.00 RETURN ON INVESTHRNT TO READING (1,386,808.]5) (20,3)0.36) -87.46% INTEREST INCOIHt (1,]95,000.00) 8,191.75 -0.63% INTEREST REFERS[ 60,559.01 1051000.00 144,440.991 -42.32% OTHER (ROSE AND AMORT) (51126.991 (3,500.00) (1,7]6.99) 49.34% 344,158.43 70,000.00 174,158.43 218.80% TOTAL NONOPERATING REV (EXP) (949 688.16) (82-3,500,00) (116.180 161 15.3]% CHANGE IN NET ASSETS 2,424,372.96 4,945,104.00 (2,520,831.04) -50.98% NET ASSETS AT BEGINNING OP YEAR 93.603,582.47 93,603,583.47 0.00 0.00% NET ASSETS AT END OF UANUARY 96 02),855.4] 98,548.686.47 (].520.831.0 -3.56% ( 1 ACTUAL UNDER BUDOBT TONE OF READING, MASSACHUSETTS MUNICIPAL LIONT DEPARTMENT RECONCILIATION OF CAPITAL FUNDS Aw 1/31/12 SOURCE OF CAPITAL FUNDS: DEPRECIATION FUND BALANCE 7/1/11 6,294,944.13 CONSTRUCTION FUND BALANCE 7/1/11 0.00 INTEREST ON DEPRECIATION FUND PY 12 6.655.16 DEPRECIATION TRANSFER PY 12 2,072,192.19 FORCED ACCOUNTS REIMBURSEMENT 0.00 DAN SUBSTATION (FY 12( 0.00 TOTAL SOURCE OF CAPITAL FUNDS 6,376.791.56 USE OF CAPITAL FUNDS: PAID ADDITIONS TO PLANT TNRU JANUARY 2,365,829.67 PAID ADDITIONS SO DAN TNRU JANUARY 0.00 TOTAL USE OF CAPITAL PONOS 2,165,829.67 GENERAL LEDGER CAPITAL FUNDS BALANCE 1/31/12 6,010,961.89 PAID ADDITIONS TO GAM PROM PY 12 0.00 PAID ADDITIONS TO OAK PROM PY 11 $31,704.00 PAID ADDITIONS TO DAN PEON PY 10 1,372,876.00 PAID ADDITIONS TO GAM FROM PY 09 3,136,766.00 PAID ADDITIONS TO GAN FROM PY OB 1,895,975.00 TOTAL 6.917,199.00 TOM OF READING, MASSACHUSETTS M AL LIOMT O OSALES OF /ILONATT HOOPS 1/]1/13 MONTH METE LAST YEAR CURRENT YEAR YTD ENt SALES OF ELECTRICITY: LAST YEAR CURRENT YEAR TO DATE TO DATE CHANGE RESIDENTIAL SALES 33,596,837 23,442,293 16),587,5)8 156,374,445 -4.41% COMM. AND INDUSTRIAL SALES 34,924,989 31,431,195 353,473,362 245,224,771 -2.87% PRIVATE STREET LIGHTING 73,252 73,395 502,929 510,436 1.49% TOTAL PRIVATE CONSUMeRB 58.595.078 53.946,782 41fi.561.729 402.109,652 -3.47% MUNICIPAL SALES: STREET LIGHTING 339,009 239,395 1,671,587 1,673,927 0.14% MUNICIPAL BUILDINGS 964,827 858,971 5,835,481 51666,016 -3.89% TOTAL MUNICIPAL CONSUNER9 1.20E 8l6 1.098.266 7,507 O68 7.340.743 -2.32% SALES FOR RESALE 312,394 282,836 2,124,784 2,049,706 -3.53% SCHOOL 1,409,774 1,316,235 81235,900 7,900,456 -4.07% TOTAL EILONATT HOURS SOLD 61.5]0.983 S6,fi44.119 4)4.4)1.481 419,400.557 -3.46% • TOM OF READING, MA68ACHUSRT7B ISI MUNICIPAL LIGHT DEPABTMBMT MILONATT ROGER BOLD BY TONS few 1/31/13 TOTAL READING LYNNPISLD NO.READING WILMINGTON MONTH RESIDENTIAL 33,443.393 7,111.119 3,015,073 5,446,383 61869,718 COg6 i IND 31,431,195 4.144,014 254,630 1,928,190 33,004.361 PPI' BY LIGHTS 73,395 13,737 1,360 21,956 36.342 POB ST LIGHTS 239,295 80,536 33,480 39,920 86,359 NONI BLDOB 858,971 162,177 137,397 146,929 313,466 SRLRS/ASSAL8 283,836 282,836 0 0 0 SCHOOL 1,316,335 483,145 268,030 161,280 401,780 TOTAL 56.644.119 12.577.564 3,708,969 30,616.658 29,730.938 YEAR TO DATE RRSIDENTIAL 156,374,445 48,878,075 32.339,481 16,480,422 48,676,461 COMM R IND ]15,2]4,771 31,163,673 1.975,519 38,039,964 174,055,616 PVT ST LIGHTS 510,436 97,575 9,530 149,664 253,677 POB ST LIGHTS 1,673,927 563,352 ]37,10] 379,340 604,333 MUNI HUGE 5,666,816 1,408,517 966,513 1,136,920 2.154.858 SALES/RESALE 2,049,706 2,049.706 0 0 0 SCHOOL 7,900,456 2,826.875 1,746,008 1,006,080 2,319,493 TOTAL 419,100,557 86,987 67L ]7.]64.143 7 0081.]98 ]28.064.N4 LAST YEAR TO DATE RESIDENTIAL 163,597,538 51,137,761 ]1,166,37] 38,108,144 50,975,361 COMM 6 IND 151,473,]6] 31,146,536 21016,005 38,129,078 1B3.179,653 PVT ST LIGHTS 502,939 97.889 9,520 118,922 316,598 PDB ST LIGHTS 1.671,587 561,052 227,211 277,B19 603,505 KURI 3=9 5,835,481 1150],035 1,012,702 1,106,439 2,114,305 SALRS/RRSALB 2,131,784 1,134.784 0 0 0 SCHOOL 8,135,900 ]19]8,145 1.748,130 1,073,360 3,486,265 TOTAL 414.411.481 89.500.19] 18,381.940 70.943,763 337,605.587 KILOWATT HOURS BOLD TO TOTAL TOTAL READING LYNNPIBLD NO.RRADINO WILMINGTON MOWN RBSIDSMIAL 39.63\ 13.55\ 5.32\ 9.62\ 13.134 COMM 8 IND 55.49\ 7.67\ 0.45\ 8.52\ 38.85\ PVT ST LIGHTS 0.13\ 0.03\ 0.00\ 0.04\ 0.07\ PUB ST LIGHTS 0.43\ 0.14\ 0.06\ 0.07\ 0.15\ HOW BLDG9 1.51\ 0.46\ 0.24\ 0.26\ 0.56\ SALES/RR9ALR 0.50\ 0.50\ 0.00\ 0.00\ 0.00\ SCHOOL 2.31\ 0.95\ 0.47\ 0.39\ 0.71\ TOTAL 100.00\ 33.19\ 19.80\ 52.17\ YEAR TO DATE RESIDENTIAL 37.39\ 11.65\ 5.33\ 8.70\ 11.61\ COMM R IND 58.47\ 7.41\ 0.47\ 9.07\ 41.50\ PVT ST LIGHTS 0.13\ 0.03\ 0.00\ 0.04\ 0.06\ PUB BY LIGHTS 0.40\ 0.13\ 0.05\ 0.07\ 0.15\ MUNI SLINGS 1.35\ 0.31\ 0.23\ 0.27\ 0.51\ SALBB/RKSALR 0.49\ 0.49\ 0.00\ 0.00\ 0.00\ SCHOOL 1.08\ 0.67\ 0.42\ 0.24\ 0.55\ TOTAL 100.00\ 20.73\ 6.50\ 18.39\ 54.36\ LAST YEAR TO DATE RESIDENTIAL 37.65\ 11.77\ 5.38\ 8.771 11.73\ COMM A IND 58.11\ 7.17\ 0.46\ 8.78\ 41.71\ PVT ST LIGHTS 0.13\ 0.03\ 0.00\ 0.03\ 0.07\ PUB ST LIGHTS 0.38\ 0.13\ 0.05\ 0.06\ 0.11\ MUNI BLDGS 1.34\ 0.35\ 0.13\ 0.28\ 0.49\ SALES/RESALE 0.49\ 0.49\ 0.00\ 0.00\ 0.00\ SCHOOL 1.90\ 0.67\ 0.40\ 0.35\ 0.58\ TOTAL 100.00\ 20.60\ 6.53\ 18.171 54.11\ 161 TOW OF READING, MASSACHUSETTS MUNICIPAL POPI 113 ILA INCOMEOMIRDEPARTMENT! 1/ll/11 TOTAL OPERATING REVEN06S (P.J) 50,605,090.93 ADO: POLE RENTAL 1,455.00 INTEREST INCOME ON CUSTONSR DEPOSITS ]9].03 LESS: OPERATING EXPENSES (P.3) (47,311,139.01) CUSTOMER DEPOSIT INTEREST EXPENSE (5,316.99) FORMULA INCOME (LOSS) J,J]0,9E1.15 i TOWN OF READING, MASSACHUSETTS HURT CIPAL LIGHT DEPAR37@TT GENERAL 8SA9I9SIC8 1/ll/13 M1 MONTHOP MONTH or \ CHANGE YEAR THEO JAN 3011 JAM 3013 3010 3011 JAN 3011 SAN 3013 SALE OF RNH (P.5) 61,530.983 $6,644,119 7.358 -3.464 434,431,481 419,400,557 ENS PURCHASED 63,563,960 59,550,350 5.70\ -3.87\ 446,397,850 433,579,697 AVE BASE COST PER RNH 0.035865 0.033086 -4.83\ -48.69% 0.067130 0.034444 AVE BASE SALE PER RNH 0.065504 0.066116 9.67% 3.43\ 0.063898 0.065040 AVE COST PER RWM 0.093740 0.009145 -5.70% -5.47% 0.091936 0.086909 AVE SALE PER SNH 0.134583 0.131100 .0.76% -1.65% 0.130785 0.118797 FURL CHARGE REVENUE (P.3) 3,639,698.16 3,114.395.49 -3.41% .10.36% 35,147,934.40 33,543,547.15 LOAD FACTOR 76.40% 76.564 ^CAR LOAD 113,174 106,558 iw cn > 0 v > U Cl (3) N U' Q) ZI J �/� °,"g, 3 s E°7^ m ' ddb In O LO O l() p 00 f�- U') N IT- CD O O O O O CD Ef} b9 � (/> K) 6�? TOW OF READING, NASSACHUSE3'T9 MUNICIPAL LIOHY DEPARTMENT "\ BCHRDULE OF GSH AND INVBSTNENTS 1/31/12 ��. SCHEDULE A PR6 IOUS YEAH CURRENT YEAH UNSESTRICIED CASH: CASH - OPERATING FUND 6,854,766.05 9,618,141.12 CASH - PETTY CASH 31000.00 3,000.00 TOTAL UNRESTRICTED CASH6,853,)66.85 9.621.141.12 RESTRICTED GSH: CASH - DEPRECIATION FUND 4,740,173.37 4,010,961.89 CASH - TONS PAYMENT 291,250.00 596,000.00 CASH - DEPERRRD FUEL RESERVE 2,395,420.56 2,452,189.78 CASH - RATE STABILIZATION FUND 4,361,131.86 6,068,389.05 CASH - UNCOLLECTIBLE ACCT RESERVE 200,000.00 200,000.00 CASH - SIM LEAVE BENEFITS 2,024,793.05 2,952,851.04 CASH - HAZARD WASTE RESERVE 150,000.00 150,000.00 CASH - CUSTONER DEPOSITS 515,69340 604,386.69 CASH - ENERGY CONSERVATION 343,796.77 173,774.12 CASH - OPER 614,450.98 1,172,973.02 TOTAL RESTRICTED CASH15.656.711 A9 18,381.520.39 RRHTifTEn 1RY88T11@FI$t Aw RATE STABILIZATION • 11000,000.00 0.00 BICE LEAVE BUYBACE • 11000,000.00 0.00 OPER ••• 200,000.00 0.00 TOTAL RESTRICTED INVESTMENTS 2,200.000.00 0.00 TOTAL CASH BALANCE 24.714.478.64 28.002.669.51 ,3AN 3011 • PREDDIE HAC 1,000,000.009 DTD 09/10/109 INT 2.00\9 MATURITY 09/15/20 •• PREDDIE HAT 1,000,000.009 DTD 09/10/109 IMT 2.00\9 HATURITY 09/15/20 ••• PRBDOIE NAC 200,000.009 DTD 09/10/109 INT 2.00\9 MATURITY 09/15/20 f 191 TOWN OF READING, MASSACHUSETTS MUNICIPAL LIGHT DEPARTMENT SCHEDULE OF ACCOUNTS RECEIVABLE 31/1] 6CNEOOLi B PREVIOUS YEAR CURRENT YEAR SCHEDULE OF ACCOUNTS RECEIVABLE RESIDENTIAL AND CONIZRCIAL 6,605,309.83 3,298,034.16 ACCOUNTS RECEIVABLE - OTHER 130,]44.]0 173,757.74 ACCOUNTS RECEIVABLE - LIENS IOS,S86.11 68,665.99 ACCOUNTS RECEIVABLE - EMPLOYEE ADVANCES 1,067.16 893.16 SALES DISCOUNT LIABILITY (357,716.60) (172,197.53) RESERVE FOR VRCOLLECTIBU ACCOUNTS (308,319.611 (]90.897.86) TOTAL ACCOUNTS RECEIVABLE BILLED 6,389,676.50 2.978,109.66 UNBIGLRD ACCOUNTS RECEIVABLE 6,055.159.11 4,330,196.37 TOTAL ACCOUNTS RECSIVABLE, NET 8.639.835.61 7.308499.01 SCHEDULE OP PRSPAYWHETe PREPAID INSURANCE 1,911,723.81 1,965,398.59 PRSPATHIRT PORCHASRD POWER 379,185.17 336,853.70 PREPAYMENT PA.SNY 139,666.63 238,330.65 PRSPAYMINT WATSON 159,877.37 155,615.85 PURCHASED POWER WORKING CAPITAL 16.513.70 16,513.70 TOTAL PREPAYMENT 1,106.076.79 1.]10.5]1.99 ACMUNTS RECEIVABLE AGING JANUARY 2012: RESIDENTIAL AND CONNERCIAL 3.198.036.16 LESS: SALES DISCOUNT LIABILITY 127].167.53) GENERAL LEDGER BALANCE 3.015.796.63 CURRENT 1,670,306.31 82.184 30 DAYS ]79,91].05 8.614 60 DAYS 137,584.99 3.93% 90 DAYS 55,963.13 1.72% OVER 90 DAYS 112.199.01 3.664 TOTAL 3.295.513.66 100.00% TORN OF READING, RASSACHU9RTTB MUNICIPAL LIGHT DEPARTMENT SCHEDULE OF OPERATING REVERTS 1/31/12 SCHEDULE O MONTH MONTH LAST YEAR CORREIT YEAR YTD \ BALES OR ELECTRICITY, LAST YEAR CURRENT YEAR TO DATE TO DATE CHANGE RESIDENTIAL SALES 3.330,381.85 2,986,106.3] 21,591,805.90 20,631,257.22 -6.65% CONN AND INDUSTRIAL SALES 6.069,710.57 3,565,526.02 28,501.661.35 2],056,60].06 -5.07% PRIVATE STREET LIGHT3N0 10,981.56 6,336.67 73,639.51 67.717.32 -35.30% TOTAL PRIVATE CONSUMERS 7.291.103.96 6,537,969.06 50.167.]06.]6 67.735.581.66 -6.BS% N ICIPAL SALES: STREET LIGHTING 67.157.01 30,661.88 326,965.18 226,671.87 -30.31% MUNICIPAL BUILDINGS 119.103.91 106,255.50 716,661.00 690,109.80 -3.68% TOTAL MUNICIPAL CONSUMERS 166.260.92 136.717.38 1.011.606.18 916,S81,67 -11.99% SALES FOR RESALE 39,967.63 35.092.33 262,906.76 251,016.50 -6.16% SCHOOL 167,129.26 151,838.98 1,001.235.36 919.331.72 -8.18% SUB-TOTAL 7,664,461.77 6,859,617.75 52,672,856.96 69,823,509.37 -5.05% PORPRITED DISCOUNTS 96,513.95 87,893.05 613,667.00 566,659.28 -7.69% PURCHA38D POWER CAPACITY 32,606.08 (10,759.23) 1,156,560.83 179,673.691 -106.89% ENERGY CONSERVATION - RESIDENTIAL 11,803.65 22,653.71 81,633.66 133,998.66 62.$2% eRRRGY CONSERVATION - COMMERCIAL 10,496.27 33,359.26 229,315.67 220,209.05 -3.97% GAN REVENUE 61,534.17 56,637.77 396,565.11 619,602.62 62.39% MYPA CREDIT 159,937.361 151,611.301 (627,390.43) 1397,816.541 -6.92% TOTAL REVENUE 7.823176.33 6.997.689.99 56.621.386.5] 50.685.090.93 -6.87% to Ili] TOW OF READING, MASSACHUSETTS MUNICIPAL LIOX1' 08PARY SEVERITY SC11®ULE OF OPERATING RBVMIHI6 BY TOWN 1/31/1] NOMAD TOTAL BRAIDING LYMPIRLD NO.READING WILMINGTON RESIDENTIAL 3,986,106.37 948,530.33 399,915.20 ]3],338.10 914,312.74 INDUS/NOMI BLDG 3,649,781.52 546,439.66 47,799.28 576,647.19 1,478,895.39 PUB.ST.LIGHTS 30,461.88 9,606.15 3,801.84 5,514.88 11,537.91 PRV.ST.LIGNTS 6,336.67 1,159.82 114.90 11909.61 3,071.33 CO-OP RESALE 35,092.33 35,093.33 0.00 0.00 0.00 SCHOOL 151,838.98 55,780.00 30,664.17 19.541.71 45,853.09 TOTAL6,859,61).)51.596.608.39 483.396.]91,337.041.51 _ 3,453.6)1.46 THIS YEAR TO DATE RESIDENTIAL 20,631,357.21 6,464,504.95 1,938,871.91 4,801,274.13 6,416,606.33 IEDUS/MUNI BLOC 27,746,716.84 3,822,007.92 352.644.62 4,433,337.19 19,138,)2).11 PUB.ST.LIGHTS 116,471.87 72,935.06 28,OB7.06 40,374.65 851085.10 PAV.ST.LIGHTS 4),71).33 8,917.68 873.00 14,702.26 23,214,28 CO-OP RESALE 253,014.50 351,014.50 0.00 0.00 0.00 SCHOOL 919,331.73 331,052.32 199,337.84 120,267.15 267,674.41 TOTAL 49,813.509.]) �p 952.433.431.519.814 Al 9,409.955.39 25.941.31).34 LAST YEAR TO OATH RESIDENTIAL 31,591,805.90 6,782,125.34 3,057,452.60 5,036,665.92 6,715.562.04 INDUS/MUNI BLDG 29,218,102.35 3,923,838.61 365,997.70 4,544,681.78 30,383,594.26 PUB.ST.LIGHTS 324,965.18 113,774.$9 39,633.23 53,530.13 116.027.23 PRV.ST.LIOHTB 73,839.51 13,985.66 11392.01 22,866.05 35,595.79 CO-OP RESALE 163,906.76 361,906.76 0.00 0.00 0.00 SCHOOL 1,001,335.14 357,097.86 209,030.09 133,608.17 301,499.13 TOTAL 51,473.854.9411.453.715.823,673.505.6] 9.)91.JSI.05 2i.554.3)8.45 PERCENTAGE OF OPERATING INCOME TO TOTAL MONTH TOTAL READING LYNNPIBLD M.RESIDING WILMINGTON RESIDENTIAL 43.53% 13.93% 5.83% 10.54% 13.33% INDUS/MONS BLDG 53.21% 7.97% 0.70% 8.41% 36.14% PUB.ST.LZOHTS 0.44% 0.14% 0.06% 0.08% 0.16% PRV.ST.LIGHTS 0.09% 0.02% 0.00% 0.03% 0.04% CO-OP RESALE 0.51% 0.51% 0.00% 0.00% 0.00% SCHOOL 1.21% 0.81% 0.45% 0.28% 0.67% TOTAL 100.00\ ]J.]8% 7.01% 39.34\ 50.3 4% THIS YEAR TO DATE RESIDENTIAL 41.41% 13.97% 5.90% 9.64% 13.90% INDUS/MUNI BLDG 55.69% 7.67% 0.71% 8.90% 30.41% PUB.ST.LIGHTH 0.44% 0.15% 0.06% 0.08% 0.15% PRV.ST.LIGHTS 0.10% 0.02% 0.00\ CO-OP RESALE 0.51% 0.03% D.p$% 0. 0.00% 0.00% SCHOOL I.85\ 0.67%67% 0.40\ 0.34% 0.54% SOTAL100.00{ 11.99% 1.07\ 18.89\ 53.05% LAST YEAR TO DATE RESIDENTIAL 41.16% 12.93% 5.83% 9.60\ INDUS/MUNI BLDG 55.68% 7.48% 0.70% 12.80% e.10% PUB.ST.LIGHTS 0.63% 0.22\ 36.84% PRV.ST.LIGHT9 0.00% 0.14% 0.22% 0.34% 0.03% 0.00% 0.00% 0.00% CO-OP RESALE 0.50% 0.50% 0.00% 0.00% 0.57% SCHOOL 1.90% 0.68\ 0.40% 0.35% 0.57\ TOTAL 100.00% 31.84% 7.01\ 18.65\ 53.50% II SAI TORN OF READING, MASSACHUSETTS MUNICIPAL LIGHT DEPARTMENT BUDGETED REVRKUR VARIANCE REPORT 1/31/1] SCHRDULi I ACTUAL BODGES { YEAR TO MIR YEAR TO DATE VARIANCE • CHANGE SALES OF ELECTRICITY: RESIDENTIAL 12,208,590.02 13,129.335.00 (920,766.98) -7.01{ COMM AND INIMISMAL SALES PRIVATE STREET LIGHTING 16,397,303.93 15,115.903.00 (818,599.07) -5.62{ MUNICIPAL BUILDINGS PUBLIC STREET LIGHTING 136,796.83 300,886.00 (166,089.17) -56.561 SALES FOR RESALE 161,566.03 176,615.00 (3],850.98) -18.83{ SCHOOL 696.707.62 517.058.00 (30.350.58) -3.96{ TOTAL BABE SALES 37,380,962.22 ]9,]37,597.00 (1,956,634.78) -6.69{ TOTAL FUEL SALES ]3.56].567.15 ]5.]78.866.00 12,736,298.85) -10.03{ TOTAL OPERATING RNBHUE 69,833,509.37 56,516,663.00 (6.69],933.63) -8.61{ PORPEITED DISCOUNTS 566,659.38 643,137.00 176,767.721 -11.93{ PURCHASED POKER CAPACITY 179,673.691 (83,535.00) 3,861.51 -6.62{ ENERGY CONSERVATION - RESIDENTIAL 132,998.66 123,693.00 10,306.66 8.60{ ENERGY CONSERVATION - COMBERCIAL 120,309.05 303.132.00 17,077.05 8.61% GAM REVENUE 619,602.62 606,691.00 16,711.62 3.66{ "PA CREDIT (397,816.56) (350,000.00) 167,816.561 13.66{ TOTAL OPERATING REVENUES 50.655.090.93 55.656.650.0016.771.559.071 -6.60{ • ( 1 ACTUAL UNDER BUDGET "M TORN OF READING, RABEACHUBRITS NONICIPOF LIGHT OPERATING EXPENSES BCXURICI OF LIGHT DEO BXPRPT 1/31/1] ec9EDm.E s NONRH IPoNTB LAST TEAR CURRENT YEAR YTD { OPERATION EXPSN988: LAST IRAN CORREOT YEAR TO DATE TO DATE CHANGE PURCHASED PONER BASE EXPENSE 3.]4],845.81 1,9]0,]96.64 16,388,]1] 23 14,934,146.54 -8.87{ OPERATION SUPER AND ENGIN-TRANS 0.00 0.00 0.00 0.00 0.00{ OPERATION SUP AND ENGINEERING EXP 33,660.76 31,507.31 170,114.05 309,]01.]4 14.61{ STATION SUP LABOR AND RISC 01859.33 ],]36.16 63,115.19 66,914.43 5.00{ LINE MIBC LABOR AND EXPENSE 43,691.14 38,506.15 356,]0].13 384,941.19 9.07{ STATION LABOR AND EXPENSE 19,641.11 ]9,66].64 268,217.62 282,BS3.46 5.46{ STREET LIGHTING EXPENSE 7,599.91 14,177.67 50,440.16 69,081.51 34.9]{ PETER EXPENSE 14,501.33 8,000.36 194,366.47 150,315.95 -21.66{ MIBC DISTRIBUTION EXPENSE 14,046.]] 15,]39.]0 193,257.83 194,912.25 1.36{ INTER RENTING LABOR c EXPENSE 5,200.39 6,977.37 44,281.91 53,954.07 31.6]{ ACCT A LOLL LABOR c EXPENSE 103.201.55 112,805.63 756,901.41 811,969.78 7.26{ UNCOLLECTIBLE ACCOUNTS 15,000.00 16.000.00 105,000.00 112.000.00 6.67{ ENERGY AUDIT EXPENSE 29,958.16 30,615.79 227,665.91 262,481.13 15.29{ RONIN 9 GER SALARIBE $3,561.74 55,D33.95 411,056.66 437,113.65 6.34{ OFFICE SUPPLIES A EXPENSE 161735.90 19,168.89 158.667.39 126.641.10 -20.38{ OUTSIDE SERVICES 17,380.36 36,302.15 115,609.34 333,657.00 93.66{ PROPERTY INSURANCE 31.705.39 23,265.13 216,066.71 216,567.94 1.16{ INJURIES AND DAMAGR$ 3,]90.]5 3,966.18 24,576.49 7,936.33 -67.75{ 81ELOYEB3 PENSIONS A BENEFITS 359,736.87 (62,284.63) 1,034.538.66 683,198.42 -33.41{ RISC GENERAL RIPENER 7,131.58 9,144.80 93.735.53 110,960.38 30.44{ RENT EXPENSE 16,613.93 51695.19 101,878.33 103,691.72 1.98{ ENERGY CONSERVATION 30.485.20 39.835.13 176,331.80 350,211.BS 26.79{ TOTAL OPERATION EXPENSES 862,010.77 153 9)3.67 4 9 0 034.69 4 9fi9 115.69 0. RAINTENANcs EXPENSES: MAIM OF TRANSMISSION PLANT 127.08 227.08 1,589.60 1.589.58 0.00{ NAINT OF $TRUCT AND EQUIPM 12,647.93 76,364.71 89.163.69 198.042.40 110.90{ PAINT OP LINES - ON 122,308.06 140,398.03 800,519.41 1,070,013.21 33.66{ MAIM OF LINES - On 17,303.03 91400.19 83,078.45 115,281.36 36.76{ MAIM OF LINE IRAIRFOR1ERS •• 432,482.03 (01399.19) 1,293,045.04 31,187.43 -97.59{ NAIM OF ST OS A $I0 SYSTEM (18.34) (48.03) 4117.88) (350.511 197.34{ NAIM OF GARAGE AND STOCKROOM 57,796.92 49,668.05 307,482.09 198,546.82 -2.91{ MAIM OF PETERS 7,593.73 9,454.55 7,593.73 49,608.01 553.18{ KRIM OF GEN PLANT 5,175.06 51489.96 57,547.90 46,703.38 -18.84{ TOTAL HAIMENANCE EXPENSES 655.595.29 38].566 13 2.639.911.02 1,900,621.68 -31.79{ DEPRECIATION EXPENSE 187,129.05 296,027.47 3,014,103.35 ],07].192.39 2.58{ PURCHASED PONES FUEL EXPENSE 3.620.814.67 3,338,331.18 24,651,335.51 ]].74],76].61 -7.72{ VOLUNTARY PAYPEMB TO TONNE 103,885.00 113,000.00 163,985.00 787,186.00 2.78{ TOTAL OPERATING EXPENSES 7.7751880660 6.453.153.13 51.409.886.80 47.311.1]9,81 -7,9]{ •• FY 12 total lnclVd.. SAN Aoil caaadiation aapaNuu totalling $0.00 Total coat. tP data TOK anti.. Propct 1. $2,481,825.11. 9 u]� TOM OP R=ING, MASSACHUSETTS NONICIPAL LIGHT DEPARTMENT BUDGETED OPERATING EXPENSE VARIANCE REPORT co 1/31/12 SCHEDULE G ACTUAL BUDGET 6 OPERATION EXPENSES, YEAR TO DATE YEAR TO DATE VARIANCE • CHANGE PURCHAStO POWER BABE EXPENSE 14,931.346.56 15.959.]]9.00 (1.025.092.46) -6.42% OPERATION SUPER AND ENGIN-TRANS 0.00 O.OD 0.00 0.00% OPERATION SUP AND ENGINEERING EXP 309,702.74 355,549.00 54,153.74 11.19% STATION BW LABOR AND NISC 66,914.43 35,363.00 31,552.43 89.23% LINE MISC LABOR AND EXPENSE 384,941.18 418,459.00 (33,517.82) -8.014 STATION LABOR AND EXPENSE 382,853.46 357,401.00 25,452.46 9.096 STREET LIGHTING EXPENSE 68,061.51 49,735.00 18,346.51 36.59% WEYER EXPENSE 150,335.95 09,159.00 611166.95 66.60% NISC DISTRIBUTION EXPENSE 194,912.25 302.468.00 (7,555.75) -3.73% MYER READING LABOR R EXPENSE 53.854.07 44,098.00 9,756.07 23.12% ACCT 6 COLL LABOR R EXPENSE 811.869.78 829,190.00 (17,320.22) -2.094 UNCOLLECTIBLE ACCOUNTS 112,000.00 112,000.00 0.00 0.00% ENERGY AUDIT EXPENSE 262,482.13 245,466.00 17,016.13 6.936 ADMIN 6 GEN SALARIES 437,113.65 439,237.00 7,886.65 1.846 OFFICE SUPPLIES 6 EXPENSE 126,641.10 155,137.00 (29,485.90) -18.366 OUTSIDE SERVICES 223,657.00 321,320.00 (97,663.00) -30.39\ PROPERTY INSURANCE 218,567.84 271,264.00 (52,696.16) -19.436 INJURIES AND DAMAGES 7,936.23 32,741.00 (24,014.77) -75.796 EMPLOYEEB PENSIONS c BENEFITS 682,190.42 933,189.00 (250,990.58) -26.906 MISC GENERAL EXPENSE 130,960.36 142,255.00 (21,294.62) -14.976 REST EXPENSE 103,891.72 123,669.00 (19,777.28) -15.996 ENERGY CONSERVATION 350.231.05 385,006.00 (34,784.15) -9.036 TOTAL OPERATION EXPENSES 6.969.115.69 5.332.685.00 (363.569.31) -6.824 NAINTRIIANCE EXPENSES: Min OF TRANSMISSION PLANT 1,389.58 1,750.00 (160.42) -9.176 MAIN) OF STRUCT AND EQUIPMENT 188,062.10 64,203.00 123,839.40 192.896 MAIN) OF LIMB - ON 1,070,013.31 816,026.00 353,987.21 31.126 MAIN) OF LIMB - UG 115.381.36 124,813.00 (9,531.64) -7.646 MAIN) OF LINE TNUIRBPORNERS •• 31,187.43 136,199.00 (95,011.57) -75.296 WAIST OF ST IT 6 SIO SYSTEM (350.51) 51610.00 (5,960.51) -106.256 SAINT OF GARAGE ANO STOCRROON 298,546.82 370,811.00 (72,264.18) -19.49% MAIN) OF METERS 49,606.01 49,828.00 (219.99) -0.446 SAINT OP OE1 PLANT 46,703.38 74,326.00 (27.623.62) -37.166 TOTAL MAINTENANCE EXPENSES 1.800.6]1.68 1,6]3.566.00 167.055.68 10.236 DEPRECIATION EXPENSE 2,073,193.29 21100,000.00 (27,807.71) -1.336 PURCHASED POWER FUEL EXPENSE 22,747,767.61 33.871.456.00 (1,123.698.39) -4.716 VOLUNTARY PAYMENTS TO TOWS 787,186.00 791,000.00 (3.814.00) -0.486 TOTAL OPERATING EXP USERS 47,]11.139.81 49.688,046.00 (2.376.916.19) -4.79% • ( ) • ACTUAL UNDER BUOGST •• BY 12 total include. OAK Boll remediation expenses totalling $0.00 Total coats to data for entire project is $3,483,835.80. Iti11 TOWN OF READING, NASSACNU88TTS MUNICIPAL LIGHT ARIAN BUDGETED OPERATING EXPENSE VARIANCE E REPORT 1/ll/1] RESPONSIBLE REMAINING SENIOR 2012 ACTUAL BUDGET RSM,SININO OPERATION 8XPRNSBA: NANAGER ANNUAL BUDGET YEAR TO DATE BALANCE BUDGET % PURCRA6® PONBR BABE EXPENSE SP 37,402.177.00 14.934.246.54 12,467.930.46 45.50% OPERATION SUPER AND ENGIN-TRANS E8 0.00 0.00 0.00 0.00% OPERATION SDP AND ENGINEERING EXP RS 438,974.00 309,702.74 129,271.26 29.45% STATION SUP LABOR AND MISC ES 62,909.00 66,914.43 (4,005.43) -6.37% LINE M29C LABOR AND EXPENSE RS 692,484.00 384,941.18 307,542.62 44.41% STATION LABOR AND EXPENSE RS 441,924.00 282,853.46 159,070.54 35.99% STREET LIGHTING EXPENSE RS 85,336.00 68,081.51 17,256.49 20.22% METER EXPENSE ES 152,130.00 150,325.95 11804.05 1.19% NISC DISTRIBUTION EXPENSE 0I1 352,508.00 194,912.25 157,595.75 44.71% NBTER READING LABOR R EXPENSE EB 76,220.00 53,854.07 22,365.93 29.34% ACCT 6 COLL LABOR 4 EXPENSE RE 1,437,255.00 811,869.78 615,385.32 43.12% UNCOLLSCTISLS ACCOUNTS AE 193,000.00 112,000.00 801000.00 41.67% ENERGY AUDIT EXPENSE 0P 414,098.00 262,482.13 151,615.67 36.61% ADMIN A CEN SALARIES VC 745,939.00 437,113.65 300,825.35 41.40% OFFICE SUPPLIES A EXPENSE VC 265,700.00 126,641.10 139,055.90 52.34% OUTSIDE SERVICE& VC 454,250.00 223,657.00 230,593.00 50.76% PROPERTY INSURANCE .10 465,000.00 215,567.84 246,432.16 53.00% INJURIES AND CADENCES JD 55,559.00 7,926.23 47,932.77 85.81% RNPLOYEBS PENSIONS A BENEFITS GD 1,441,637.00 682,198.42 759,438.56 52.68% MISC GENERAL EXPENSE VC 203,091.00 120,960.38 82,130.62 40.44% RENS EXPENSE m 212,000.00 103,891.72 108,108.28 50.99% ENERGY CONSERVATION JP 643,789.00 350,221.85 293,567.15 45.60% TOTAL OPERATION EXPENSES 0,823,105.00 4,969,115.69 3,053,989.31 43.68% MAINTENANCE EXPENSES: MAIMT OF TRANSMISSION PLANT RS 3,000.00 1,589.58 1,410.42 47.01% MAINT OF STRUM ANO BGUIPMT RA 107,072.00 188,042.40 (80,970.40) -75.62% NAINT OF LINES - ON RS 1,419,953.00 1,070,013.21 349,939.79 24.64% NAIM OF LINES - CG [A 214,037.00 115,281.36 98,755.64 46.14% NAINT OF LINE TRANSPOMENS •• as 188,500.00 31,107.43 157,312.57 83.45% MAINT OF ST IT A 910 SYSTEM GD 9,636.00 (350.51) 9,986.51 103.64% MAINT OF GARAGE AND STOCRROON GD 662,139.00 298,546.82 363,592.18 54.91% NAINT OF METERS ES 85,444.00 49,600.01 35,835.99 41.94% NAINT OF GEN PLANT RP 127,620.00 46,703.35 80,916.62 63.40% TOTAL MAINTENAKCE EXPENSES 2,017,401.00 1.800.621.68 1.016,779.32 36.09% DEPRECIATION EXPENSE RF 3,600,000.00 2,072,192.29 1,527,807.71 43.44% PURCNASeD POTTER FUEL EXPENSE TP 39,768,617.00 22,747,767.61 17,021,049.39 42.80% VOLUNTARY PAYNENT9 TO TOWNS RP 1,356,000.00 707,186.00 568,814.00 41.95% TOTAL OPERATING EXPENSES 83.767.500.00 47.111.119.81 36.456.370.39 43.52% •• PY 12 total inclu0e. GAN soil remediation expenses totalling 80.00 Total coat. to Este for entire project is 62,482,825.80. IM TOWN OF READING. NASSACHOBETTS MUNICIPAL LIGHT DEPARTNENT PROFESSIONAL SERVICES 01/31/3013 PROFESSIONAL SERVICES BY PROJECT ITEM DEPARTMBWF ACTUAL BUDGCT VARIANCE 1 RNID AND PENSION TRUST AUDIT PEGS ACCOUNTING 36,960.00 3],]50.00 2,690.00 1 PENSION ACTUARIAL EVALUATION ACCOUNTING 0.00 0.00 0.00 3 LEGAL- PBRC/I90 ISSUES ENERGY SERVICE 0.00 10,500.00 (10,500.00) 6 LEOAL- POWER SUPPLY ISSUES ENERGY SERVICE 30,109.35 ]6,]50.00 3,659.35 5 PROPEBSIONAL SERVICES ENERGY SERVICE 7,606.33 16,000.00 (61515.65) 6 ESRC CONPLIANCS 9 6 O 11,990.00 10,650.00 1,160.00 7 LOAD CAPACITY STUDY/GIS ENGINEERING 9.200.00 11,350.00 (1,970.00) 8 LEGAL SERVICES- GBN6RA, ON 91,670.70 29,169.00 63,501.70 9 LEGAL SERVICES-GENERAL HA 36,356.61 26,500.00 1,756.61 10 LEGAL SERVICES-NEGOTIATIONS HE 632.30 0.00 633.20 11 LEGAL GENERAL BLDG. MAIM. ],31].50 875.00 1,637.50 13 SURVEY RIGHT OF WAY IWO. NAINT. 0.00 21919.00 (31919.00) 13 ENVIRONMENTAL BLDG. MAIST. 0.00 21919.00 (21919.00) 16 STATION 1 STRUCTURAL FBASABILITY BLDG. SAINT. 0.00 50,000.00 (50,000.00) 15 DEIOLITION OF CONTROL CRNTER BLDG. SAINT. 2,S33.19 100,000.00 (97,676.01) 16 INSURANCE CONSULTANT GEN. BENEFIT 6,650.33 2,919.00 3,539.33 17 LEGAL GEN. BENEFIT 0.00 21919.00 (31919.00) i TOTAL 333,657.00 3]1,3]0.00 (97,663.00) i PROFESSIONAL SERVICES BY VENDOR ACTUAL RONARRS INSURANCE 6,061.66 RUBIN AND RUDNAN 110,965.94 UTILITY SERVICES INC. 13,681.67 HBLANSON HUM 4 COMPANY 61,903.63 DUNCAN AND ALLEN 6,182.99 CHOATE HALL AND STEWART 26,880.61 PROFESSIONAL ENVIRONMENTAL SERVICES 3,110.00 CDM 9,300.00 CMREC 6.169.33 COVINO ENVIRONNENTAL ASSOCIATION ].5]3.19 TOTAL 133,657.00 (13) RULD BUDGET VARIANCE REPORT FOR PERIOD ENDING JANUARY 31, 2012 DIVISION ACTUAL BUDGET VARIANCE CHANGE ENGINEERING AND OPERATIONS 2,912,154 2,475,829 436,325 17.62% ENERGY SERVICES 650,367 681, 516 (31,149) -4.57% GENERAL MANAGER 495,434 431,685 63,750 14.779 FACILITY MANAGER 1,559,655 2,156,370 (596,715) -27.679 BUSINESS DIVISION 5,303,539 5,410,361 (106,821) -1.979 SUB-TOTAL 10, 921,150 11, 15 (234,610) -2.10% PURCHASED POWER - BASE 14, 934,247 15,959,339 (1,025,092) -6.429 PURCHASED POWER - FUEL 22,747,768 23,871,456 (1,123,688) -4.719 TOTAL 48,603,164 50,986,555 (2,383,391) -4.679 • J ® RSD DEFERRED POBL CA88 RESERVE ANALY828 01/31/12 OR0SS NOMI7D,Y TOTAL DATE CNAROEE RSVENOEB NYFA CREDIT DEFERRED DEFERRED Jun-11 3,055,214.78 Jul-11 4,131,396.83 4,049,745.45 (79,163.651 (160,815.03) 2,894,409.75 Aug-11 3,795,607.97 3,924,541.80 (52,328.74) 76,605.09 2,971,014.84 9"-11 2,914,869.40 3,166,562.64 (56,669.90) 192,823.34 3,163,638.18 Oct-11 2,955,398.39 2,852,952.53 (45,133.69) (147,579.55) 3.016,258.63 NOV-11 2,643,246.46 2,544,526.70 (47,451.31) (145,171.07) 2,070,087.56 Dec-11 2,968,917.38 2,889,823.94 (63,455.95) (142,550.79) 2,727,336.77 Jen-12 3,338,331.18 3,114,393.49 (51,411.30) 1275,346.99) 2,452,189.78 w uo RNLD STAFFING REPORT FOR FISCAL YEAR ENDING JUNE, 2012 ACTUAL 12 BUD JUL AUG SEP OCT NOV DEC JAN TOTAL 11 11 11 11 11 11 12 GENERAL.-MANAGER GENERAL MANAGER 2 2 2 2 2 2 2 2 HUMAN RESOURCES 1 1 1 1 1 1 1 1 COMMUNITY RELATIONS 1 1 1 1 1 1 1 1 TOTAL 4 4 4 4 4 4 9 9 v_ *aINEaa ACCOUNTING 2.00 1.50 1.50 1.50 2.00 2.00 2.00 2.00 CUSTOMER SERVICE • 7.75 8.75 8.75 8.75 8.75 8.75 0.75 8.75 MONT INFORMATION SYS + 6.25 5.25 5.25 5.25 5.25 5.25 5.25 5.25 MISCELLANEOUS 1 1 1 1 1 1 1 1 TOTAL 17.00 16.50 16.50 16.50 17.00 17.00 17.00 17.00 ENGINEERING 4 OPEReTIONa AGN E4O 2 2 2 2 2 2 2 ENGINEERING 5 5 5 5 5 5 5 LINE 21 20 20 20 20 20 20 21 METER 4 4 4 9 4 9 9 9 STATION 8 8 8 8 8 8 8 7 TOTAL 40 39 39 39 39 39 39 39 PROJECT BUILDING 2 2 2 2 2 2 2 2 GENERAL BENEFITS 2 2 2 2 2 2 2 2 TRANSPORTATION 0 0 0 0 0 0 0 0 MATERIALS MGMT 4 4 4 4 9 4 9 9 TOTAL 8 8 8 S 8 8 8 8 KNERGY-aERVICKS ENERGY SERVICES + 5.5 5.5 5.5 5.5 5.5 5.5 5.5 4.5 TOTAL 5.5 5.5 5.5 5.5 5.5 S.5----T 5 9 5 RNLD TOTAL 74.5 73 73 73 73.5 73.5 73.5 72.5 CONTRACTORS DO LINE 2 2 2 2 2 2 2 2 TOTAL 2 2 2 2 2 2 2 GRAND TOTAL 76.5 75 75 75 75.5 75.5 75.5 74.5 Part time employee To: Vincent Cameron From: Energy Services Date: February 22, 2012 Subject: Purchase Power Summary —January,2012 Energy Services Division(ESD) has completed the Purchase Power Summary for the month of January, 2012. ENERGY The RMLD's total metered load for the month was 59,550,250 kwh, which was a decrease of 4.71%, compared to the January, 2011 figures. Table I is a breakdown by source of the energy purchases. TABLE 1 Amount of Cost of %of Told Total 5 $as e Resource Energy Energy Energy Costs % ® (kWh) (&Wwh) Millstone k3 3,702,713 -55.74 6.22% - , 5 - % $35 Seabrook 1,357,337 $6.18 732% 535,66511 107% JP Morgan 9.390,800 $56.15 15.77% $527,261 15.79% StonySrook CC 202,919 5170.44 0.34% $34.586 1.04% Constellation 13,008,600 $68.47 21.84% $890,735 26.66% NYPA 2,027.882 54.92 3.41% $9,977 0.30% ISO Interchange 6.158,228 847.15 10.34% $290,352 8.70% NEMA Congestion 0 50.00 0.00% -51,983 -0.06% Coop Resales 88.408 $13210 0.15% $11,687 0.35% Slonyerook Peaking 0 50.00 0.00% $24 0.00% MacOuarie 18.072,000 $72.75 30.35% $1,314,662 39.38% Braintree Watson UnB 97.769 $126.06 016% 512.325 0.37% Swift River Projects 2,443,794 $95.88 4.10% S234,309 7.02% Monthly Total 59.550,250 $56.08 100.00% $3.338.331 100.00% ATTACHMENT Table 2 breaks down the ISO interchange between the DA LMP Settlement and the RT net Energy for the month of January, 2012. Table 2 Amount Cost %of Total Resource of Energy of Energy Energy (kWh) ($/Mwh) ISO OA LMP' 7,416,503 44.46 12.45% Settlement RT Net Energy -1,258,275 26.57 -2.11% Settlement ISO Interchange 6,158,228 47.15 10.34% (subtotal) CAPACITY The RMLD hit a demand of 106,558 kW, which occurred on January 16, 2012 at 6 pm. The RMLD's monthly UCAP requirement for January, 12,was 201,318 Ms. Table 3 shows the sources of capacity that the RMLD utilized to meet its requirement. Table 3 Amount of Cost of %of %of Capacity Capacity Total Total Source (kWs) ($/kW-month) Capacity Total Cost$ Cost Millstone e3 4,991 $51.65 2.48% $257,774 19.28% Seabrook 7,910 $49.81 3.93% $393,962 29.46% Stonybrook Peaking 24,981 $2.00 12.41% $50,021 3.74% Stonybrcok CC 42,925 $3.85 21.32% $165,263 12.36% NYPA 4,665 $2.81 2.32% $13,101 0.98% Hydro Quebec 4,274 $4.78 2.12% $20,446 1.53% ISO-NE Supply Auction 101,051 $3.25 50,19% $328,647 24.57% Braintree Watson Unit 10.520 $10.28 5.23% $108,133 8.09% Total 201,318 56.64 10000% $1,337,348 100.00% i Table 4 shows the dollar amounts for energy and capacity per source. Table Coat of %of AM of Enaroy Power Resource Energy Capacity Total cost Total Cost (kWh) ($kWh) Millstone e3 -521,254 $257,774 $236,520 5.06% 3,702,713 $0.0639 Seabrook $35,651 $393,962 $429,613 9.19% 4,357,337 $0.09W Stonybrook CC $34,586 $165,263 $199,849 4.27% 202,919 $0.9849 Hydro Ousbec $0 $20,448 $20,446 0.44% 0 $0.0000 Constellation $890,735 $0 $890,735 19.05% 13,008,800 50.0685 NYPA $9,977 $1,101 $23,079 0.49% 2,027,882 $0.0114 ISO Interchange $290,352 $328,647 $618.999 13.24% 6,158.228 $0.1005 NEMA Congestion -$1,983 $0 41.983 -0.04% 0 $0000lo Coop Resales $11,687 s0 $11,687 0.25% 88,408 $0.1322 Slonybrook Peaking $24 $50,021 $50,044 1.07% 0 $0.0000 JP Morgan $527,261 $0 $527,261 11.28% 9,390.600 $0.0581 MacOuarb $1,314,662 50 $1,314,662 28.12% 18,072,000 $0.0727 Braintree Watson Unit $12,325 $108,133 $120,459 2.58% 97,769 $1.2321 Swift River Projects $234,308 so $234,309 5.01% 2,443,794 $0.0959 Monthly Total $3,338,331 $1,337,348 $4,675,680 100.00% 59,550,150 $0.0785 TRANSMISSION The RMLD's total transmission costs for the month of January were $638,899. This is an increase of 2.74% from the December transmission costs of$621,443. In January, 2011 the transmission costs were $754,397. Table 5 shows costs for the current month vs. last month and last year(January, 201 1) Table 5 Current Month Last Month(Dec'11) Last Year(Jan'l 1) Peak Derrane(kW) 106,558 108.371 112.174 Energy(kWh) 59.550.250 59,123.502 5,81.807 Energy S) S3,338.331 $2.968,917 $3.620.815 Capacity(5) $1.337.348 $1,397.529 SI 492.489 Tranamlssion(11 1138.191 5621441 1754191 Total $5.314.578 54.987,089 S5 867,701 � ) /0000//// ) /\/////// | | 2 # k ! 020 i / ) ) \ \ § kk § 0 ! ! E 2 ■ ! ! § ! § ! « E 888888888 , - , `3 .!65, , }, !3 $ . ■ , ■ | | G� ■`# $;@e(� $§, !`k CL Im k $ {¥ | | | | {) !/ � k $� ; ) 0 ) ( \/ , ) k \ ! ) > ! ! 7t/ + k ! E ` Q ! ! ! ! ! ) lk � kkkk � � \ \ }k ) / kk \ \ . \ ) \ } kms { ATTACHMENT �l 18 of w+ ILCL d' rn � 06" oE00) d' c II 0 m m r co Ln V co N r O suolll!W ul saelloa y IT N O tO a a a m a n n r LL N m O (V r r � a ---------- ------------- V7 m (o rn r r > Cl) m m m m rn m ar •Z v (o m to to ao �y L 3 7 d x m o - 00 M4WO rnnrnm Noo� or � A m f� O O � m 7 N 0 0 0 O V V 000 N � W � m on ao .- mo mo .- o 0000 rn caV O O O O N C 0 0 [ 0000 0 0 0 0 W Q ______� ___�____________ ________________ _______________ _______________ Lo O 3 r` O O + O O A N � W OD ao ao 4 Y � � 1 L m O O O O N E aD M 0 0 O V O O O O O Y m m N 0 N O M(A O It a m O M m 0000 O O m m 7 N nN � N � � O O N O 0009 CT Y N 0 0 O N 0 0 0 0 0000 0000O C ________ ___ --------------------- ___________________ ________________ U � C } a0 OI O N Q i 0 0 1 11 N N N N N N d ILL C C C C C N C EE C N C N C E E E c i E c E c E c c as a rn m aa a a F C d N W a d m CU W m ani a W a° aa, W � ami O r •� J O U N J ¢ U N J U N J fp F ID w@ ❑ d Tn N ❑ ❑ O m m c U J D C U J -O U J U J U 10 o ° f d m o o d o ° a0i o o -2 d o •o UaaELL F- ULL ¢ LL 0a ¢ LL c-> aCrLL as 2/24/2012 READING MUNICIPAL LIGHT DEPARTMENT 10'.58 AM FY 12 CAPITAL BUDGET VARIANCE REPORT FOR PERIOD ENDING JANUARY 31,2012 ACTUAL YTD ACTUAL ANNUAL COST COST BUDGET 0 PROJECT DESCRIPTION TOWN JANUARY THRU 1/31112 AMOUNT VARIANCE E8O Construction-System Proiects 1 5W9 Reconductoring-Ballardvale Street W 31,951 159.632 242.649 83.017 2 High Capacity Tie 4WIS and 3W5 Franklin Street R 40.702 112,368 157.766 45.398 7 Upgrading Old Lynnf*W Ctr URDs LC 377 579,927 579.550 SCADA Protects 4 RTU Replacement R 1,640 130.255 128.615 Distribution Automation Pro,go 5 Reclosures ALL 197,901 197901 e Capacitor Banks ALL 8,362 9,542 105.052 95,510 7 SCADA Radio Communication System ALL 231.386 231 386 Station Upgrades(Station a4 GAWI S Relay Replacement Project R 343 2,803 99.656 96.853 9 11 51,V Disconnect Replacement R 22.650 49,738 88,585 38,847 New Customer Service Connections 12 Service Installations-CommeraialAndustrlal Customers ALL 4,998 29.980 62,530 32,550 17 Service Installations-Residential Customers ALL 10,591 104,152 206,017 101.865 4 Routine Construction Various Routine Construction ALL 152,543 1,296,880 1.016,382 (280.498) Total Construction Projects 272,179 1,787,112 7,118,108 7,750,994 Other Prolecb /5 GIS 8,715 50.000 41.285 18 Transformers/Capacitors Annual Purchases 102,340 157,352 198.800 41,448 17 Meter Annual Purchases 7,855 7,855 46.360 38,505 17A Meter Upgrade Project 21,759 316.050 1,740.656 1,424606 18 Purchase New Small Vehicle 31,544 36,000 4,456 19 Purchase Line Department Vehicle 386,000 386.000 20 Purchase Puller Trailer 75.000 75,000 21 Roof Top Units 30.000 30,000 22 Engineering Software and Data Conversion 76,690 76.690 23 Plotter 18,000 18.000 27 Hardware Upgrades 7.B09 32,436 40.000 7.564 28 Software and Licensing 26 060 94 435 68.375 OTH Cooling Tower Replacement 18.706 - (18.706) Total Other Projects 139,763 598,718 2,791,941 2,197,227 TOTAL RMLD CAPITAL PROJECT EXPENDITURES 411,902 2,365,830 5,910,047 3,544,217 ® 29 Force AccounuReimbursable Projects ALL - TOTAL 112 CAPITAL PROJECT EXPENDITURES 411,902 2,365,870 5,910.047 7,544,217 Reading Municipal Light Department Engineering and Operations Monthly Report January, 2012 FY 2012 Capital Plan E&O Construction -System Projects 1. 5W9 Reconductoring- Ballardvale Street - Wilmington - Installed primary spacer cable and cutouts;pole transfers; engineering labor; installed swamp anchor; 2. High Capacity Tie 4W18/3W8 Franklin Street- Reading - Installed pulling blocks, rope, pole to pole guy, spacer cable, spacers, transformer, and gang operated switch; spliced; pole transfers. 3. Upgrading of Old Lynnfield Center URDs- Engineering correspondence with Town of Lynnfie/d; developing specifications. SCADA Proiects 4. RTU Replacement at Station 4 - Reading - No activity. Distribution Automation (DA) Proiects 5. Reclosers - No activity. 6. Capacitor Banks - Build capacitor banks. 7. SCADA Radio Communication System - No activity. Station Upgrades 8. Relay Replacement Project- Station 4- Reading - Technical Services Manager labor. 9. 115 kV Disconnect Replacement- Station 4 - Reading - No activity. 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. Notable: Charles River-261Ballardvale Street, Wilmington and 57-59 High Street, Reading. 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. Pole SettinglTransters $208,490 Maintenance OverheadNnde round $299,101 PTIects Assigned as Required $357,754 Pole Damage includes knockdowns some reimbursable $33,791 Station Group $2,967 Hazmat/OilSpills $3,118 Porcelain Cutout Replacement Program $2,533 Lighting Street Light Connections $58,526 Storm Trouble $77,567 Underground Subdivisions $52,164 Animal Guard Installation $50,446 Miscellaneous Capital Costs $150,424 TOTAL $1,296,880 'In the month of January two cutouts were charged under this program. Approximately 22 cutouts were installed new or replaced because of damage making a total of 24 cutouts replaced this month. 2 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 — 60.29 minutes RMLD 4 year average outage (2006-2009) — 50.98 minutes per outage On average, RMLD customers that experience an outage are restored in 60.29 minutes. 18000 55.09 60.00 140.00 M 120.00 100.00 80.00 62.54 m 54.69 56.31 57 .05 Q 60.00 S U 40.00 23.2 G 20.W 0.00 , ^ nn w ♦ ♦ `L a4't d` 2°'r peu Yep' 0 Monthly minutes per outage — • RMLD 12 month system average outage duration 60.29 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 - .44 outages per year RMLD 4 year average outage frequency - .82 The graph below tracks the month-by-month SAIFI performance. 1.00 0.91 0.90 F 0.80 0.70 r 0.80 b o.so 0.50 e 0.40 � 31 0 s zo a z1 0.20 0. t 0.10 0.00 H—RMLD monthly outage frequency — • RMLD 12 month system average outage frequency .44 —RMLD 4 ear average outage frequency.82(2006-2009) 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 approximately every 27.3 months. 4 j RMLD R.�,�MI.... ole. ...,:i.. :u... . .c.x...a.a 230 A. atlas P.O.a 130 Real%MA0186/-0230 T&(781)9141340 Fm:(791)942-2409 Web:www.mdd.cao February 21,2032 Town of Reading Municipal Light Board Subject: RTU Station Controllers and Supplementary Services On January 11, 2012 a bid invitation was placed as a legal notice in the Reading Chronicle requesting proposals for RTU Station Controllers and Supplementary Services for the Reading Municipal Light Department. An invitation to bid was emailed to the following: Power Equipment Sales Schneider Electric Nova Tech Reliatronics JF Gray Power Tech UPSC Power Sales Group WESCO Graybar Electric Company Shamrock Power Sales Hasgo Power Robinson Sales EL Flowers Stuart Irby HD Supply Bids were received from Survalent Technology Corporation and CG Automation Solutions USA Inc. The bids were ppublicly opened and read aloud at ll:oo a.m. February 8, 2012 in the Town of Readin Municipal Light Department's Board Room, 23o Ash Street, Reading,Massachusetts. The bids were reviewed, analyzed and evaluated by the General Manager and the staff. Move that bid 2012-27 for RTU Station Controllers and Supplementary Services be awarded to: Survalent Technology Corp. for a total cost of$94,023.00 Item(desc.) Manufacturer Total Net Cos[ Item 1 Two RTU Station Controllers& Survalent 94,023.00 support services as the lowest qualified bidder on the recommendation of the General Manager. Fik:aidM12/RTU, ATTACHMENT � . R[a imiiht n cipa1 U&D.Par,��, RMLD 2 O Ash Suet.P.O.Box 150 Reading.MA 018674250 The total FY12 Capital Budget allocation for 'Remote Terminal Unit (RTU) Replacement — Station q" is $52,000. in 2011, the RMLD was found to be out of compliance regarding substation distribution transmission as required by ISO OPx18. Fulfilling OF x18 requires the installation of an additional RTU beyond what had been planned for FY12. V.-,j cent F.C. eron Jr. 61 Kevip Sullivan Peter Price Foe Bid/M2/RTUs | | All, $! § f £ ! | ) { � § ! { ■ i | | § § ! ! 2 a U ® ! ■ ! , | | ` ■ ` ! � � � � 2 ! | ! � ! • ! ! : { � ! , | | | ■ ■ ! : ! : ! ! « � ! § ■ ! a ! ° ! ) ) , . , ! § § § ) \ \ } \ \ \ { \ § ) \ \ RMLDRawly ma-kip.1 Ll,ht Dq,,A a. ae a La eU.re-ro. LaaparlOae I 130 AA Shear P.O.Boa 130 Reading,MA 018670230 Tel:1781I94a-1340 Fax:17811942-2109 Web: February 14,'_012 Town of Reading Municipal Light Board Subject: Line Truck Lift Equipment Inspection and Preventative Maintenance Service On January 12, 2012 a bid invitation was placed as a legal notice in the Reading Chronicle requesting Proposals for Line Truck Lift Equipment Inspection and Preventative Maintenance Service for the Reading Municipal Light Department. An invitation to bid was emailed to the following: D.C. Bates Equipment Consolidated Utility Equipment Services,Inc.(C.U.E.S.) 1&D Power Equipment,Inc. James A. Kiley Co. A bid was received from James A. Kiley Co. The bid was publicly opened and read aloud at 11:00 a.m.February 8,2012 in the Town of Reading Municipal Light Department's Audio Visual Spurt Room,230 Ash Street,Reading, Massachusetts. The bid was reviewed,analyzed and evaluated by the General Manager and staff. Move that bid 2012-29 for Line Truck Lift Equipment Inspection and Preventative Maintenance Service be awarded to: James A.Kiley Co.for 5115,560.00 Item 1 Lim Truck Lift Equipment Inspection and Preventative Maintenance 5715,560.00 Service as the lowest qualified and responsive bidder on the recommendation of the General Manager. This is a three-year contract. IFB 2012-29 is funded through the Transportation Operating budget. 7 Lutcc �u, b nn•ntF Came n.1r - _ - - -- 1 vs l� I lana)kif - 1 Craig Lln YII2 N I in• rruck I.Jt Fqupm,•m Imry%tem anJ Pnv rntmn',•11.untrnar.-a•ti•n ua•,ha \ ) � ] ° \ 2 ! \ ) . e ! ) ! 3 � ) 3 i ) § _ } \ k / � \ � § k \ 0 k i RMLDRe.dra8 MuUkipd Lir61 Npanmear � rnuue . ... ro• �rxr.,n„n I, 270 Ash sueer p0.Boa 170 Rsadini,MA 01867-0270 Tel:178119 a 1140 Fu:(781)WZd409 WW wwwrmlacom February 14,'_012 Town of Reading Municipal Light Board Subject: Line Truck Chassis Inspection and Preventative Maintenance Service On January 12, 2012 a bid invitation was placed as a legal notice in the Reading Chronicle requesting proposals for Line Truck Chassis Inspection and Preventative Maintenance Service for the Reading Municipal Light Department. An invitation to bid was emailed to the following: Dynamic Heavy Repair Glynn Equipment Repair Lowell Fleet Maintenance Ryder Truck Rental&Leasing Taylor&Lloyd, Inc. S. Benedetto&Sons, Inc. A bid was received from Taylor&Lloyd, Inc. Fhe bid was publicly opened and read aloud at 11:00 a.m.February 8,2012 in the Town of Reading Municipal Light Department's Audio Visual Spurt Room,230 Ash Street Reading, Massachusetts, fhe bid was reviewed,analyzed and evaluated by the General Manager and staff. Move that bid 2012-30 for Line Truck Chassis Inspection and Preventative Maintenance Service be awarded to: Taylor&Lloyd,Inc.for$106517.56 Item 1 Line Truck Chassis Inspection and Preventative Maintenance Service $106,517.66 as the lowest qualified and responsive bidder on the recommendation of the General Manager. This is a three-yearconttact. IFB 2012-10 is funded through the Transportation Operating budget. r GGcef,• p(,i L c mmol F k a Cron, Ir. Ju . Dun�htfe - ('ralg� lq n \� ]u1±.V1I nu• rnr.Ar'bae.0 lmpvum anJ Pnn.nlan�r \lamrtrraac Fn.vda N v m N m of r c i° W d o '9c Fel nl p C ry f'ypC N U 2 r J D A O m ~ A N N u N R 5 c N m u t � V V i o O � C ~ m N v I O e ! cot p a S E � m m RMLD a adiag Maiikip.l Deputmew ........ ....at ... .......... 230 Ne San P.O.aw 170 Reading.MA 018674270 41:(781)9141340 Fee:(781)912-2409 we►:...,add.caa February 15,2012 Town of Reading Municipal Light Board Subject: Meters On January 18, 2012 a bid invitation was placed as a legal notice in the Reading Chronicle requesting proposals for Form 12 S Network ERT Meters for the Reading Municipal Light Department An invitation to bid was emailed to the following: WESCO Graybar Electric Company Austin International Inc. Power Tech UPSC Stuart Irby Holbrook Associates Sensus Metering Systems AvCom Inc. JF Gray Meterman Supply Inc. Shamrock Power Hasgo Power Robinson Sales EL Flowers Power Sales HD Supply Bids were received from Aveom,Irby and Graybar Electric. The bids were publicly opened and read aloud at t1:oo a.m. February 8, 2012 in the Town of Reading Municipal Light Department's Board Room,23o Ash Street,Reading, Massachusetts. The bids were reviewed,analyzed and evaluated by the General Manager and the staff. Move that bid 2012-31 for Form 12 S Network ERT Meters he awarded to: AvConz Inc. for a total coat of 837,550.00 Item(desc.l Manufactamr Qty Unit Cost Total Net Q 1 Form 12S,Class 200,12o volts Network ERT meters Itron 500 75.10 37.550.00 as the lowest qualified bidder on the recommendation of the General Manager. These meters are for the new projects Reading Woods,3o Haven St. and the Diamond Crystal project in Wilmington. The Capital Budget allowed for 130 units totaling$10,400(item B). ;,'neentV .C-1 1eron,Jr. Kevl Sullivan Nick D'Alleva 1.1. lea. F)12 21.12.It f! � § | . ! t ! ! ! | \ ! ) | ■ ! ! IJ i fiq 4 ■ � \ � | � ! $ ^ $) } m ) fi ! $ ) | ] � | ! : | ! ( \ j � } | ■ ! f | „ � � � � � 4 , , � | ; � , , „ • | ■ , )it \ | � !Ism � \� \� h� \r 19 is R § | | . tj \� � Page I of I Jeanne Fotl �'11111ir From: Vincent Cameron Sent: Tuesday, January 24, 2012 1 SS PM To: RMLD Board Members Group Cc: Bob Fournier; Steve Kazanjian; Jane Parenteau; Jared Carpenter; Jeanne Fo i; Kevin Sullivan Subject: FW. Account Payable Questions-January 13, 2012 Categories: Red Category O'Neill 1. Mini (customer) - I am curious why all the documentation provided from the customer was unsigned quotes, not actual invoices. The RMLD rebates are based on technologies and not what was spent by the customer. Information on the projects is for RMLD records and to see how the market is progressing. We keep a record of many projects costs, however, the projects costs are private and for internal use only. If the customer negotiated a better price for the project, we would not know about it. The RMLD does actual inspections and we do not require signed invoices as proof the work was complete. 2. United Power Group-This cost will be added to the Gaw capital project? Why was no contract prepared, there seemed to be ample time? Some of this cost was a Gaw project extra and some of the cost was NERC based. The work related to the transfer scheme rewiring was Gaw project related. While UPG was on site present,we asked UPG to do some work on the Under Frequency relays to satisfy the North American Electric Reliability Council requirements. 1 14 '1111 Page I of 3 Jeanne Foil From: Vincent Cameron Sent: Tuesday, February 07, 2012 11 04 AM To: RMLD Board Members Group Cc: Bob Fournier, Steve Kazanjian; Jeanne Foil, Wendy Markiewicz Subject: FW. Account Payable Questions - Februray 3, January 27 d 20 Categories: Red Category February 3 O'Neill 1. Wire Transfer-MA -GM signature needed. It is signed. 2. Asplundh-One invoice for$2,236.25 is missing. Thera was a Question on one of the Asplundh bills, which was put in for payment. I pulled it out to review it and didn't get it back in. It turned out the bill was correct. 3. Rubin 6 Rudman-Please discuss first invoice re 2011 power supply in Feb. exec. session. Please discuss fourth invoice re EOEEA in Feb exec, session. Yes. Soil 1. Sales Tax-GM signature? It is signed. 2. Rubin 6 Rudman-What is a tolling agreement?What is EOEEA? A tolling agreement is an agreement to waive a right to claim that litigation should be dismissed due to the expiration of a statute of limitations, which was related to the MMWEC Arbitration, The EOEEA is the Executive Office of Energy and Environmental Affairs. Snyder 1. Asplundh-3rd bill work dated 1/21/11-1 assume this is a typo?No invoice. no customer copy for the $2.23625 There was a Question on one of the bills I pulled it out to review it and didn't geld back 'n We are talking to Asplundh about it. 2 ECNE - What is this organization? Does it provide good value? Energy Council of Northeast The Engineering Dept. uses this group for engineering support and input on ,andue subjects 3 Office Depot - Ahat s Ire osollaung heater for? Some of the areas in me office can be cold and this provides heat for the employees 2 7 2012 Page 2 of 3 i January 27 O'Neill 1. Cushing, Jamallo+ Wheeler- Please detail what"LSP services"are included in the$15K on PO 12-E00164. The spill at Ryan Road was a transformer that came o0 a pole and hit the ground after a tree hit a pole during the October snow storm. There was a release of od, which needed to be cleaned up. 2. Rubin and Rudman-Are legal expenses usually this high for finalizing a bid? I would like both bids and associated legal costs discussed in the next executive session, if appropriate, in open session. Yes. I will do this. 3. TransDala -Please explain this bill. What happened to these meters? Why were they worth repairing at this price? These meters needed repair due to lightening and other problems. The RMLD spent$3,317 to repair them. To replace each meter would have cost over a$1k a pieta. 4. Town of Wilmington-Why no PO? This is payment to the Town of Wilmington for a pole relocation. This is necessary for relocating pole, so there is no PO necessary. Snyder 1. Century Bank- How,do you check these -some of the numbers aro extraordinarily large. The last column"Required Balances"is for Century Bank internal use only and is not related to the RMLD transactions We have called Century and asked them to take this off the statement. 2. Concentra -Who gets these physicals? New employees. 3. TransDala-What is"scrambled memory"and why some ®250 - some at 3757(-Ditto Above) The memory has been affected due to lightening or some other problem. It is cheaper to fix the memory than to buy a new unit. 4. Utility Services - What is Aurora Vulnerability? + What is misoperalions report? Aurora Vulnerability - The destabilization of rotating equipment via physical or cyber means with a motive to destroy such equipment M,sopelation reporting- Quarterly reporting of any mrsoperations on the 115kV that may have influenced the DP Gistnbution Provider) reliabdhty Causes to this may be vegetation. relay ovennp operations, equipment failure. etc January20 LO'Neill 1 Fourrver Pettycash 'Why didn't Granite City order go through the PO process 272III_2 Page 3 of 3 The RMLO needed a circuit breaker box for the Wildwood substation, immediately. The employees made the purchase on an emergency basis without a PO. Snyder 1. ISO- Some of these go back to 2008 how are we checking? The Energy Service Division (ESD)balances kwh and dollars monthly. ESD will call the ISO-NE if they believe the credits are incorrect. 2. Petty cash remember: Need receipts for everything. I have checked the receipts and they are all there. 3. Reading Car Care t Stoneham Motor- Reminder: P.O. post dates work. Should be done before work authorized. Sometimes there is work needed to be done that the RMLD needs estimates on. When we find out the amount we cut the PO. The vendor may date their invoice the day the car arrived. 4. Standard Electric- The standard electric confusion .explanation re: lack of P.O. is an example of why need P.O. front. Please explain what was billed vs. credit. The RMLD needed a circuit breaker box for the Wildwood substation, immediately. The employees made the purchase on an emergency basis without a PO. One for$214.77 and another for$188.98. The credit part of the bills is the payment for each purchase. There was a discount of$2.20 on one bill. The payment is correct. Jeanne Foti Executive Assistant. Reading Municipal Light Department 781-942-8434 Phone 781-942-2409 Fax Please consider the environment before printing this e-mail. 2:7 2012 Page I of I Joanna Fill 19 From: Vincent Cameron Sent: Friday, February 17, 2012 9:35 AM To: RMLD Board Members Group Cc: Bob Fournier; Steve Kazanjian;Jeanne Fol Wendy Markiewicz Subject: FW: Account Payable Questions- February 10 Categories: Red Category Snyder 1. Pfeiffer-Why is this from May 2011 +customer listed is Timothy Shand? Commissioner-Please call me on this and I will explain the sitivation. 2. Sage-Could you clarify each of these line items please. 1. Automatic Check Handling 2. Paperless Invoices, 3. Bounced Checks,4. Rejected Transactions, 5. Total Transactions, 8. Statement Fee, and T. Credit Card Fee. 3. PURMA-Why wasn't door repair paid by the insurance? Under the contract with JCM the repair is RMLD's responsibility. The repair cost is under our deductible amount. IL 4. TCI of NY-Why are we still seeing PCB's? This was a pole mounted distribution transformer installed in 1978 on Old Farm Road, Reading. It was taken out of service recently and a larger transformer was installed. After being taken out of service, the transformer tested out at 97 PPM of PCBs and was disposed of property. We have approximately 885 transformers in service that were purchased between 1980- 1979. We are checking manufacturer records for these transformers to determine the insulating oil make up. The RMLD has an approximate total of 3,208 transformers in service. O'Neill 1, TCI of NV-Where was this material from? Please see Item 4 above. Payroll Hahn 1 Overtime discrepancies between payroll and OT listing. The Line Deptpayroll overtime costs for 2/17112 matched against the Bi-Weekly 0fr payroll listing in the Excel spreadsheet. The Bi-Weekly O/T payroll listing is a new report on the OR Bo-Weekly payroll and when it printed out(in EXCEL) it printed the 2/3112 Bi-Weekly OR amounts column and not the ®2117112 Bi-Weekly 0?amounts column. Ike reprinted the O!T report for 2117112 with the correct Bi-Weekly amounts. I put the 2117112 Bi-Weekly 0?report with a copy of the 2/17/12 payroll in your mail slot. 22 2012 Page I of I Jeanne Fold From: Vincent Cameron Sent: Wednesday, February 22, 2012 1:45 PM To: RMLD Board Members Group Cc: Bob Fournier; Jane Parenteau; Steve Kazanjian; Jeanne Foh; Wendy Markiewicz Subject: Answer to Payables 2/17112 Categories: Red Category Snyder 1. MacQuarie-Financials-What is Energy Swap + what is the relation between Volume, Fixed, and Float prices+amount due? How do we track the peak and off peak usage in the physicals sales? Energy Swap represents the Heat Rate contract that RMLD signed with MacQuarie. On four separate occasions in 2011, RMLD locked in the Natural gas prices which represent the Fixed Prices column. The Float prices are the penultimate pricing for natural gas when the market closes in December,2011 for January 2012. The amount due for financial is simply the difference between fixed and float price times the volume. The On-Peak and Off Peak usage is the original amount that RMLD issued the RFP for. Those amounts are fixed within the Purchase Power Agreement. RMLD tracks the amounts through the ISO-NE billing system. We are able to verity the Mwhs supplied by each supplier. Once the natural gas prices are "locked" in, RMLD calculates the pricing of the contract and verifies the amounts that are invoiced. 2. Accurate Calibration-What is the annual calibration? This seems like something for which the PO should have done upfront for sure. Same goes for American Arbitration. The RMLD has it meter testing equipment calibrated once a year. The Requisition was created on January 28, 2012, the day of the invoice. The PO was cut the next day. The American Arbitration bill goes to our attorneys first and then to us. We didn't get the bill until February 7, 2012 , the day the requisition was created. The PO was cut on February 10, 2012. 3. Collins-Wasn't this door a recent bill? The recent bill was replacement of the entry door in the Barbas Warehouse that had to be replaced. The Collins bill is to repair an overhead door at 218 Ash Street, which is the garage. 4. DOER-Is this a new assessment? No. We get this assessment once a year for Residential Conservation Services from the Massachusetts Department of Energy Resources. 5. JCM Realty-What is so much electricity in the warehouse? The etec ricity is for lighting, heating, ventilation(fans), office space, etc. The history on the bill shows that it is very steady usage. O'Neill 1. Choate. Hall. and Stewart - Please review at the Feb. Executive Session. Yes I was going to suggest to put that on the agenda. 222211_2