HomeMy WebLinkAbout2014-01-29 RMLD Board of Commissioners MinutesStart Time of Regular Session:
End Time of Regular Session:
Commissioners:
Reading Municipal Light Board of Commissioners
Regular Session
230 Ash Street
Reading, MA 01867
January 29, 2014
7:30 p.m.
9:45 p.m.
John Stempeck, Chairman Philip B. Pacino, Vice Chair
Robert Soli, Secretary Pro Tem David Talbot, Commissioner
David Mancuso, Commissioner
Staff.
Coleen O'Brien, General Manager Jeanne Foti, Executive Assistant
Bob Fournier, AccountingBusiness Manager Jane Parenteau, Energy Services Manager
William Seldon, Senior Energy Analyst
HECEIVED
TOWN CLERK
FADING, MASS,
1014 MAR 31 q 9:Z1,
Citizens' Advisory Board:
George Hooper, Vice Chairman
Rubin and Rudman LLP:
Chris Pollart, Partner
North Reading Board of Selectmen:
Joseph Foti, Clerk
Michael Prisco, Member
Call Meeting to Order
Chairman Stempeck called the meeting to order and stated that the meeting was being videotaped; it is live in Reading only.
�Nsopening Remarks
Chairman Stempeck read the RMLD Board of Commissioners Code of Conduct.
Introductions
Chairman Stempeck welcomed CAB Vice Chairman George Hooper and Town of North Reading Board of Selectmen,
Joseph Foti and Michael Prisco.
Chairman Stempeck stated that Commissioner Soli will be the Secretary at this meeting.
Public Comment
There was no public comment.
Regular Session Minutes December 12, 2013
Mr. Pacino made a motion seconded by Mr. Mancuso to approve the Regular Session meeting minutes of December 12,
2013, as corrected.
Motion carried 5:0:0.
Report of the Chairman (Attachment 1)
Update on Charter Committee — Report by Vice Chair Pacino
Mr. Pacino reported that as he mentioned at the last Board meeting, the Town of Reading formed a committee to look at the
Home Rule Charter. Mr. Pacino stated that he has handed out the proposed changes in the Charter that affect the Board. Mr.
Pacino highlighted the proposed changes in section 3 -5 Municipal Light Board in the Charter since he is a member of the
Charter Committee.
Mr. Pacino stated that the changes are as follows: under Chapter 164, the proper name should be Municipal Light Board of
Commissioners, the second paragraph was removed because that is defined under Chapter 164, the fourth paragraph adds that
to Municipal Light Board of Commissioners shall hire the General Manager of the Municipal Light Department and set the
uties and terms of employment, with the word compensation stricken because it is not necessary due to the fact that the
Board sets the duties and terms of employment. The proposed changes to the Home Rule Charter can be found on the Town
of Reading's website. Chairman Stempeck clarified that Mr. Pacino's impression is that compensation is inclusive of the
duties and terms. Mr. Pacino concurred.
Regular Session Meeting Minutes
January 29, 2014
Report of the Chairman (Attachment 1)
Update on Charter Committee — Report by Vice Chair Pacino
Chairman Stempeck asked if the Charter states that the Municipal Light Board of Commissioners shall employ the Auditor
appointed by the Town of Reading Audit Committee. Chairman Stempeck said that he was under the understanding that the
RMLD had the freedom and flexibility to use the auditor of their choice. Mr. Pacino said that he would have to explain the
history on how this came into place. Based on the Inspector General's Report in 2001, there were a couple of changes
recommended by a special committee. One of the things they reviewed was that the Board would have direct hiring of the
Accounting Manager and Chief Accountant. It was based on the committee's feedback that the Accounting Manager could
not come to the Board to bring the items discussed in the Inspector General's Report forward. The line was created in order
that the Accounting Manager could bring such items to the Board instead of the General Manager. In terms of Chapter 30B,
the RMLD was in disagreement, but the Town of Reading insisted it would be in there. Mr. Pacino said that he has read the
2013 memo from Rubin and Rudman and believes it came out in 2001. Basically, the RMLD does not have to follow 30B,
however, at that time; there was discussion among the town to make this commission appointed. The outside towns would
have not been particularly pleased with that outcome. Mr. Pacino said that he can go back ask for the removal of 30B and
bring back the opinions or any other changes.
Chairman Stempeck said that it is one of the issues that Rubin and Rudman had commented on referring to 30B, Chapter 164
and the level of independence of the RMLD. Whether it is the town's Human Resources person, auditor or law firm, these
impact the independence of the RMLD. Based on that, he would like to reexamine these changes offline.
Mr. Pacino pointed out that under 4 -10 Other Committees, there is language to appoint long standing Ad Hoc committees.
Mr. Pacino reported under 4 -11 they voted at their meeting on Monday evening to have a Charter Review Committee that
would meet every ten years. The members would include one from the Board of Selectmen, one member from the Library
trustees, one member from RMLD Board or designee, one member from the School Committee, and three Town Meeting
members. There was discussion if representation from the Light Board was necessary; he abdicated for representation from
the Board. Chairman Stempeck added that they do not want the Charter committee to have recommendations that are
unf ilfillable or unsustainable or illegal. The only way to influence that is to look at this while it is being developed. Mr.
Pacino pointed out that much of RMLD's load is outside of the Town of Reading. Mr. Pacino said that it has been pointed
out to him that this is Reading's Light Department, but has corrected them to point out that it is customers of the system Light
Department.
Mr. Pacino added that under 4 -12 Permanent Building Committee that has been referred to the Board of Selectmen. The
proposal is to add a Permanent Building Committee for any building such as the library that is being built. The Committee
would consist of an engineer and individuals who are familiar with the projects.
Chairman Stempeck polled the members of the Board to see if they had any comments to the proposed Charter changes, there
were none. Mr. Pacino mentioned that they are in the interim process.
Chairman Stempeck asked what the timeframe is. Mr. Pacino replied that they are hoping to have this ready for the April
Town Meeting. Mr. Pacino said that once this is completed, the Town of Reading legal counsel needs to review this.
Chairman Stempeck suggested once this is ready for printing, a copy should be provided to the RMLB for review by Rubin
and Rudman.
General Manager's Report — Ms. O'Brien — General Manager
Organizational Study RFP
Ms. O'Brien reported on the Organizational Study, which includes a long term system reliability study that is in its final draft
stage. The matrix and benefits have been completed for evaluating qualified consultants. Releasing the RFP in February is
anticipated and Ms. O'Brien is awaiting the arrival of the new Director of Engineering and Operations to review the package
before it is sent out for bid. The study looks at overall staffing levels, skill sets, career development, succession planning,
productivity, and efficiency improvements, market wages as well as the long term reliability plan to provide capital layout
and prioritization of these projects for over the next twenty years. Both components of the organizational study are intended
to align with RMLD staff and the required technology to reach the next generation of electric industry challenges. The bid
will be advertised and in the registry for potential consultants to bid on within the next couple of months.
Mr. Mancuso asked for a sense for what kind of inputs you would be providing to the organization compared to the study
relative to goals and efficiency improvement as well as the types of technology. Would they be looking at the organization
blindly or do we provide them with guidance?
Regular Session Meeting Minutes
January 29, 2014
General Manager's Report — Ms. O'Brien — General Manager
') rganizational Study RFP
,is. O'Brien explained that they usually begin with the reliability study; however, this may be two consultants. One
consultant that has expertise both fields would be optimal. When you start with the reliability, you are looking at power
supply in the industry and what shape and flexibility your system needs to have for the next twenty five years. As has been
discussed on a number of occasions, peak shaving for voltage readings at the end of the system, you want the system to be
flexible enough to allow different customers to provide generation back onto the system and to have those types of
communication networks in order that we can send signals as well as get signals back so we are communicating with our
system and our customers. In addition, the reliability study also looks at all of your equipment to ensure any major capital
improvement such as substation overhauls or circuit feeders or system coordination protection is performed. They will take
everything that needs to be done and lay it over twenty years with prioritization; based on the recommendations, it's possible
that outside staff augmentation may be required. The consultant will provide cost estimates for all recommendations, along
with a timeline to support funding schedules. The reliability study will be inputted into the six year plan and aligned with the
financials. Our message to the consultant will be that RMLD needs to have a system that is flexible for peak shaving and
have engineers, energy services and the correct customer service staff to promote programs that will ensure RMLD successes
for the future industry challenges. Those components will be integrated into the organizational study. It will reflect what
RMLD needs currently, within 10 years, by 20 years. The skill sets and processes for this size utility to meet the demands of
this New England area. You might find that the job descriptions are consolidated or may change employees may need
additional training.
Ms. O'Brien asked if this is what Mr. Mancuso is seeking. Mr. Mancuso replied that the RMLD will be providing them some
sense of the kind of goals we want to set for peak shaving and what we have for demand response. Ms. O'Brien said that you
can get into as much detail as you would like in a study, but the optimal means is to have the recommendations focus on the
overall strategic roadmap. The more detail, the more costly the study. Ms. O'Brien stated that there are issues presently that
she has already deemed focus areas for FY14 /15 which provide the foundation for system planning. This includes both the
evaluation and completion of the GIS and the development of a qualified substation and testing group. Ms. O'Brien said that
she cannot express enough the importance of predictive and preventative maintenance and its impact on safety. As well, she
wants in -house expertise to perform the maintenance which reduces costs and increases accountability, responsibility and
wnership. Mr. Mancuso asked if the study would comment on the Energy Efficiency position and if there will be a return
440on investment. Ms. O'Brien replied, exactly.
Mr. Talbot asked when this study will be put out to bid. Ms. O'Brien replied that she hopes to get this out to bid the first
week of February however; she would like to complete the preliminary system assessment prior to releasing the RFP.
Power Supply Report — December 2013 — Ms. Parenteau (Attachment 2)
Ms. Parenteau presented the December Power Supply Report. Ms. Parenteau reported that the RMLD's load for December
was approximately 60.8 million kWhs which is a 2.7% increase from December 2012. RMLD's energy cost was
approximately $3.67 million, roughly equivalent to $.06 per kilowatt hour. Ms. Parenteau stated that the Fuel Charge
adjustment was $.04 per kilowatt hour for December and the RMLD sales totaled 51.6 million kilowatt hours, as a result the
RMLD under collected by approximately $1.6 million resulting in a Deferred Fuel Cash Reserve balance of $2.375 million.
The January Fuel Charge was set at $.045 and is projected in February to go to $.05 per kilowatt hour.
The RMLD purchased about 15% of its energy requirements from the ISO New England Spot Market at the average cost of
$131 per megawatt hour. Ms. Parenteau said that because of the cold weather in December and January, New England is
faced with a natural gas constraint. The generators do not have firm contracts to import the gas into the region.
Ms. Parenteau explained that the ISO had taken this up in the fall and procured with several of the generators to have dual
fuel and many of the generators are burning oil which is at a much higher cost with the average price have ranged in the $200
to $300 range per megawatt hour. On December 14, it hit a high of $800. RMLD is in the market for only 15% of Spot
Market power. The RMLD has a portfolio of generators such as StonyBrook that is running in excess of RMLD's
requirement, therefore the RMLD will receive a credit for that generation at the average LMP to offset the average cost of the
fuel burned.
Chairman Stempeck commented that the natural gas situation is also impacting NSTAR and the other ISO owned facilities.
Ms. Parenteau stated that with RMLD's Fuel Charge they have a portfolio of resources to secure its requirement, whereas
STAR or National Grid go out to bid every six months. As a result of that, their rates have increased significantly for the
hole six month period. Chairman Stempeck added that the cost to those customers represent a 24% to 37% whose rates are
almost double RMLD.
Regular Session Meeting Minutes
January 29, 2014
4
Power Supply Report — December 2013 — Ms. Parenteau (Attachment 2)
Mr. Mancuso asked if the ISO has found sufficient reserves. Ms. Parenteau responded that there was a shortage event called
on the 14'', in which they enacted demand response and had over 90% of the demand response show up.
Ms. Parenteau reported on the capacity side in which the RMLD hit a peak demand of 116 megawatts on December 16 at
6:00 p.m., the temperature was 16 degrees. The RMLD's monthly capacity requirement was 215 megawatts of capacity,
equivalent to $1.47 million or just under $7 kilowatt month.
Because of the upcoming retirement of three power plants, it is highly probable that these capacity auctions are going to clear
based on new generation which is going to be significantly higher than the current market. The current market is around
$3.50 a kilowatt month. The Salem Harbor closure is causing the NEMA Load Zone which Reading is a part of to go to $15
a kilowatt month and this will only exacerbate those costs. Ms. Parenteau said that they are working diligently to see what
kind of program that they can implement to manage those peak demands that is the only way we are able to hedge those
future higher costs.
Ms. Parenteau reported that for capacity and energy costs as well as energy generated in kilowatt hours for the month of
December, RMLD capacity and energy costs came in at just over $.08 per kilowatt hour. In addition, for the month of
December, 6.6% of our energy purchases were generated from hydro generation.
Ms. Parenteau commented that the RMLD has 16,400 RECs for the calendar year 2013. RMLD has sold approximately
4,600 RECs for a total of $245,000 which was credited against the fuel costs in October. The current market value for the
remaining RECs is approximately $562,000.
Ms. Parenteau reported that the RMLD's total transmission cost for the month of December was $805,000 which is
approximately a 19% increase from November 2013.
Ms. Parenteau reported that the RMLD processed nine commercial lighting rebates for November and December totaling a
little less than $70,000 bringing the fiscal year total to $138,000. The RMLD calculates the capacity savings to be
approximately 433 kilowatts and the energy savings to be approximately 1,500 megawatt hours. On the residential side the
RMLD calculates 102 kilowatts of capacity savings and 80 megawatt hours of energy savings. To date the RMLD has
processed 662 residential rebates totaling $31,600 and 199 RMLD customers have received audits totaling $39,800.
Financial Report — December 2013 — Mr. Fournier (Attachment 3)
Mr. Fournier presented the December Financial Report provided in the Commissioner packets for the first six months of this
fiscal year; the negative change in Net Assets or Net Income for December was $1.8 million, decreasing the year to date Net
Income to $161,000. Fuel Expenses have exceeded Fuel Revenues by $234,000.
Year to date base revenues were under budget by $1.1 million or about 4.5 %, actual base revenues were $23.6 million. Year
to date purchased power base expenses were over budget by $73,707 or less than .5 %, actual purchased power base costs
were $14.8 million.
Year to date operating and maintenance (O &M) expenses combined were over budget by $300,000 or just over 4.5 %, actual
O &M expenses were $6.1 million. Depreciation expense and voluntary payments to the Towns were on budget.
Operating Fund is at $10 million, Capital Fund $4.5 million, Rate Stabilization Fund $6.7 million, Deferred Fuel Fund $2.3
million and the Energy Conservation Fund at $411,000. Year to date kilowatt hours sales are 362 million kilowatt hours,
which is 1.1% behind last year.
Mr. Soli asked if the Net Income is missing by 95 %. Mr. Fournier replied if compared to budget that is correct.
M.G.L. Chapter 30B Bids (Attachment 4)
Mr. Hooper commented that when the RMLD goes out for bid is it apples to apples. Chairman Stempeck replied that is
correct. Mr. Soli reported that he had never been to a bid opening, however, was in attendance the agenda and the RMLD
runs a tight ship relative to the bid process and required paperwork.
IFB 2014 -12 Single Phase Pad Mounted FR3 Transformers
Mr. Pacino made a motion seconded by Mr. Soli that bid 2014 -12 for Single Phase Pad Mounted FR3 Transformers be
awarded to WESCO for a total cost of $149,855.00 as the lowest qualified bidder on the recommendation of the General
Manager.
Motion carried 5:0:0.
Regular Session Meeting Minutes
January 29, 2014
M.G.L. Chapter 30B Bids (Attachment 4)
TFB 2014 -13 Single Phase Pole Mounted Transformers
,In Pacino made a motion seconded by Mr. Talbot that bid 2014 -13 for Single Phase Pole Mounted Transformers be
awarded to WESCO for a total cost of $99,792.00 as the lowest qualified bidder on the recommendation of the General
Manager.
Motion carried 5:0:0.
IFB 2014 -14 Three Phase Pad Mounted Transformers
Mr. Pacino made a motion seconded by Mr. Soli that bid 2014 -14 for Three Phase Pad Mounted Transformers be awarded to
WESCO for a total cost of $143,869.00 as the lowest qualified bidder on the recommendation of the General Manager.
Motion carried 5:0:0.
IFB 2014 -15 Three Phase Pole Mounted Transformers
Mr. Pacino made a motion seconded by Mr. Soli that bid 2014 -15 for Three Phase Pole Mounted Transformers be awarded to
WESCO for a total cost of $62,625.00 as the lowest qualified bidder on the recommendation of the General Manager.
Motion carried 5:0:0.
IFB 2014 -16 15kV Aerial Spacer Cable
Mr. Pacino made a motion seconded by Mr. Soli that bid 2014 -16 for 15kV Aerial Spacer Cable be awarded to Arthur Hurley
for a total cost of $58,275.00 as the lowest qualified bidder on the recommendation of the General Manager.
Motion carried 4:0:1. Vice Chair Pacino abstained from the vote.
Mr. Pacino explained that his abstention from this vote is because this vendor obtains insurance bonds from one of his clients,
and he wishes to avoid the slightest possibility of conflict of interest.
Cost of Service Study — Consideration of Rate Adjustment Ms. O'Brien — General Manager (Attachment 5)
Ms. O'Brien stated that she was seeking an approximate 5% rate increase. This past Friday, the January revenues came in
which provided seven months of actuals and five months of projected. The December sales income is down from last year.
Towever, the shift to capital outlay projects and the vacancies resulted in a savings of $300,000. As Mr. Fournier mentioned,
it five divisions are under budget. With the $300,000 savings the rate increase recommendation will be approximately
4.5 %. The approximate increase will vary on the rate class and usage. The increase is due to unrealized projected sales over
the past several years. The RMLD by law must cover its production costs as well as maintain sound financial positioning
with low risk credit rating for attracting low cost power supply in meeting its financial commitments. The RMLD has not
had an increase in well over three years and with the increase, the rates will still remain amongst the lowest in the state. The
increase insures an acceptable financial standing for the remainder of the fiscal year and is projected to come in at
approximately $500,000 less than the approved budget. Expenses were evaluated and lessened without adversely impacting
our excellent reliability. Unfortunately, for this situation we have five months to cover costs therefore, a gradual increase is
not an option. To mitigate any further unexpected rate increases, RMLD has begun a full Cost of Service Study and is
formulating a six year forecast plan. The six year plan will be made available to all CAB members and town managers so we
all can work proactively to ensure successful budgets. The Cost of Service Study is due later this spring and if there is any
further increase that is determined the information can be disseminated appropriately into the fiscal year 2015 budget process.
Contingencies in everyone's budget to address these fluctuations are prudent. Over the last several years, fuel costs have
decreased most likely from natural gas prices. However, Ms. O'Brien needs to caution that the power fuel prices are
beginning to escalate and all of New England electric customers will see a larger impact in several years. This is based on a
number of imminent charges as Ms. Parenteau mentioned from the ISO electric grid system including transmission bills in
the absence of sufficient area generators.
Mr. Pacino said that he wanted to revisit how RMLD works (he proceeded to a drawing board where his highlights follows).
From the rates, there is power supply coupled with transmission and distribution costs, operating expenses from that is the
depreciation fund, the RMLD is allowed 3 %, the depreciation fund is used for construction to maintain the reliability of the
system, the above line payments are made to the four towns that were put in place by special legislation with the Twenty
Year Agreement. It is based on the amount of plant that is in each town and the usage which gives you a net allowable up to
8 %. RMLD is not achieving 8 %. If the economy should turn around, and more than 8% is returned then the Board can
refund money to the customers which it has done in the past. From the 8% there are two places it goes. The return on
investment to the Town of Reading is for the initial investment and for bearing the liabilities. That number at the time of the
wenty Year Agreement was capped at that plus an annual adjustment based on the CPI formula. What does not go back to
e Town of Reading goes into construction. The risk of not doing anything in terms to rate increase negatively affects the
reliability of the system. There is a mechanism/process in the agreement for evaluating the calculation method.
Chairman Stempeck polled all those in attendance to see if anyone wanted to make a statement.
Regular Session Meeting Minutes
January 29, 2014
Cost of Service Study — Consideration of Rate Adjustment Ms. O'Brien — General Manager (Attachment 5)
Mr. Prisco said that he wanted to take the opportunity to congratulate the Board on the selection of Ms. O'Brien as General
Manager. She was nice enough to come and visit the Board at one of their meetings, had a great conversation and could tell
right away that you definitely made the right choice. He thanked Ms. O'Brien for listening to their concerns and taking them
back. Chairman Stempeck and Ms. O'Brien thanked Mr. Prisco and hope all goes well.
Mr. Prisco wanted to clarify because when Mr. Norton originally told them about the rate increase it was slightly more than
what you are going to approve. Mr. Prisco clarified that the 4.5% is for this year only and next year will there be a similar
increase. Ms. O'Brien explained that the RMLD could not wait for the cost of service to address the needs between now and
the end of the fiscal year. The cost of service will take the production costs and everything that Commissioner Pacino has
gone over. The cost of service splits the pie and allocates appropriately in a variety of different rate designs including a new
low income rate, as well as an LED streetlight rate. That Cost of Service Study is due later in the spring. Ms. O'Brien stated
that to clarify the larger percentage, at the onset on the discussion of this rate increase, when explaining how the 5% was
derived this 9% came up as it affected the base portion — the embedded portions of the rate.
Mr. Prisco commented that this is an understandable increase now that you have explained it. He as well as Mr. Foti
understands the rate increase of 4.5 %. Ms. O'Brien clarified that she had spoken to Ms. Willis in the North Reading School
system and advised her that the school increase was only 3.9 %. Mr. Prisco added the low income rate, it is something the
RMLD does not currently offer and is one of the reasons he is at the meeting. In North Reading, they have a sizeable senior
community and an increase on our seniors who are on a fixed income is going to be pretty significant. He urges the Board to
find creative ways, perhaps a senior rate exemption, we offer all the seniors in all our communities it would go a long way.
Those outside of the senior age group if they have to take a little more on, he would rather see that. If that could be given
consideration before you make your vote. Ms. O'Brien said that the Board voted at the last meeting to include it in the Cost
of Service Study and she is confident that is something that will be voted on when that is completed. Ms. O'Brien stated that
Commissioner Soli had mentioned to her earlier that if that could be pulled out of that even in a preliminary way and vote on
that, we are limiting the increase to those customers. Coming up with the administration and the logistics of the program,
how you qualify people and the related paperwork to qualify needs to be set up.
Ms. O'Brien thanked Mr. Prisco for his input as well as his kind words.
Mr. Talbot said that he has circulated an op ed that he will be putting in the papers tomorrow that builds on some of the
things we are trying to do in terms of peak shaving. It tries to promote the ideas and explains how important they are. In
North Reading one thing they can do is if they have an electric water heater, customers can save $200 annually if they allow
the RMLD to shut off the water heaters for a couple of hours. It helps the RMLD save a large amount of money. The time of
use in his own home he saves $15 -$20 monthly by shifting some of his outside of the 12 -7 bracket. If he was on the flat rate
he would be paying $15 -$20 more. Mr. Talbot thanked Ms. Parenteau for their information on summer peak information that
will be contained in the article. Peak shaving is a crucial factor and Ms. O'Brien is working on that. Mr. Talbot said that
looking at the rates considering the small amount of customers that take part in this rate, exempting the off peak portion, it
would send a powerful signal because the press coverage on the rate increase, this one part (time of use savings) makes it
better.
Chairman Stempeck said that the intent of the article is to encourage customers to adopt this program. Mr. Talbot added to
adopt a program we know works. By not changing the rate and exempting the off peak portion it would draw a lot of
attention to this rate. Chairman Stempeck said that without the spreadsheet we cannot make a determination. Ms. O'Brien
added that we have 514 in the hot water rate and 350 in the time -of -use rate. Ms. O'Brien said that it has been estimated that
between 2,000 to 4,000 meters are to be addressed. Ms. O'Brien said that in Mr. Talbot's op ed the RMLD will provide
contact names for customers who are interested in these programs.
Mr. Tabot said that for the proposed rate increase this evening, he would like to exempt the off peak portion on the time of
use for the residential customers. With 300 it equates to half a cent which does not negatively impact the numbers.
Mr. Pacino raised the point of logistics because the proposed change brought forward by Mr. Talbot would need to go back to
the CAB for review per the Twenty Year Agreement. Mr. Pacino appreciates what Mr. Talbot is doing which is a great idea
in the Cost of Service Study. Mr. Pacino commented that he thinks that Mr. Talbot's suggestions are great and the Board is
behind them.
Mr. Soli said that one good item relative to customer's bills is that the hazardous waste chargel /10 penny per kilowatt hour
will be ending, very small, but in the right direction. Mr. Soli pointed out that had the Board had not been so busy hiring a
General Manager, and dealing with all that, they would have seen this in the budget for the whole year.
Regular Session Meeting Minutes
January 29, 2014
Cost of Service Study — Consideration of Rate Adjustment Ms. O'Brien — General Manager (Attachment 5)
Mr. Soli said that as pointed out earlier, the RMLD is behind in its revenue and there is only five months to make up this
.eficit. When we adopted last year's budget if we looked a little harder, we could have said we needed to raise prices. It
would have been about a 2% change. The money that the customers are going to pay because it is a twelve month period
differs. For next year, 4.5% will revert to 2 %. Mr. Soli said it depends on the Cost of Service Study results.
Mr. Hooper added that he is in agreement with Mr. Soli if it was picked up and we were able to do this much earlier. The
timing is part of this, no one likes to be the new General Manager and bring this bad news. Mr. Hooper is pleased that the
rate increase has been dropped to 4.5% because it shows that you are exploring and identifying some other areas. Mr.
Hooper clarified that Chairman Stempeck is aware of what the CAB put forth on its recommendation. Mr. Hooper said that
at the CAB meeting he made a comment on the CPI on the payment to the Town of Reading with his concern with that if the
RMLD is not performing well fiscally that payment will still be going out. Perhaps, this is something that needs to be looked
at. Chairman Stempeck said that we can take that under consideration, it is a good suggestion.
Ms. O'Brien said that the RMLD needs to maintain a rate of return that allows us to make our commitments and also
provides enough of a buffer to augment the fuel fund or assist with the depreciation fund should there be a catastrophic event
affecting critical infrastructure or power supply. The RMLD has been targeting a rate of return in the 5% range; a return
which allows the commitments to be made, is less than the allowable 8% to keep rates the low, and provides the said buffer.
Chairman Stempeck said that we can table this discussion to another time.
Mr. Hooper said that it is important that we communicate better to other communities including Wilmington. One of the
things is that they perform their fiscal budgets even though we deal with residential ratepayers and commercial ratepayers
they also deal with school and as well as municipal buildings. Ratepayers are also taxpayers and are affected by this. We
should communicate better to these communities when for consideration when they do their budgets.
Chairman Stempeck stated that on behalf of all the commission members, he would like to thank everyone involved in this
very difficult process involving the rate increase. He would like to thank the Selectmen in all the towns because of the timing
of this issue, the budgets, the constituencies, etc. No one wants a rate increase and they are customers as well. Chairman
A 'tempeck wanted to thank the CAB for their consideration and the staff at the RMLD for their efforts trying to get to
%womething reasonable. At the end of the day the RMLD has to be fiscally sound and that overrules everything else we do. It
is a good teaching tool to do it better if there is a next time.
Mr. Pacino made a motion seconded by Mr. Soli that the Reading Municipal Light Department Board of Commissioners
approve the adoption of the rates MDPU numbers #228, 229, 230, 231, 232, 233, 234, 235 dated to be filed January 30, 2014
on the recommendation of the General Manager.
Motion carried 5:0:0, unanimously.
General Discussion
There was none.
BOARD MATERIAL AVAILABLE BUT NOT DISCUSSED
Rate Comparisons, January 2014
E -Mail responses to Account Payable/Payroll Questions
RMLD Board Meetings
Thursday, February 27, 2014
Thursday, March 27, 2014
Citizens' Advisory Board Meeting
Wednesday, March 12, 2014 - Tentative
Fiscal Year 2015 Budget Meetings
April 2, 2014 — Lynnfield — April 9, 2014
Executive Session
A 9:20 p.m. Mr. Pacino made a motion seconded by Mr. Soli that the Board go into Executive Session to approve the Executive
ession meeting minutes, based on Chapter 164, Section 47D exemption from public records and open meeting requirements in
certain instances, to discuss mediation and union negotiations update, and return to Regular Session for the sole purpose of
adjournment.
Regular Session Meeting Minutes
January 29, 2014
Chairman Stempeck polled the Board. Motion carried by a polling of the Board:
Mr. Talbot; Aye, Mr. Pacino; Aye, Mr. Mancuso; Aye, Mr. Soli; Aye, and Chairman Stempeck, Aye.
Motion carried 5:0:0.
Adjournment
At 9:45 p.m. Mr. Mancuso made a motion seconded by Mr. Soli move to adjourn the Regular Session to adjourn.
A true copy of the RMLD Board of Commissioners minutes
as approved by a majority of the Commission.
Robert Soli, Secretary Pro Tern
RMLD Board of Commissioners
IR
To: Coleen O'Brien
From: Maureen McHugh, Ja Parenteau
Date: January 27, 2014
Subject: Purchase Power Summary — December, 2013
Energy Services Division (ESD) has completed the Purchase Power Summary for the
month of December, 2013.
ENERGY
The RMLD's total metered load for the month was 60,836,967 kWh, which is a 2.7%
increase from the December, 2012 figures.
Table 1 is a breakdown by source of the energy purchases.
Table 1
ATTACHMENT 1
Amount of
Cost of
% of Total
Total $
$ as a
Resource
Energy
Energy
Energy
Costs
%
(kWh)
($ /Mwh)
Millstone #3
3,701,611
$7.37
6.08%
$27,268
0.74%
Seabrook
5,895,553
$7.87
9.69%
$46,400
1.27%
Stonybrook Intermediate
1,412,632
$188.84
2.32%
$266,756
7.28%
JP Morgan
7,336,000
$58.50
12.06%
$429,175
11.71%
NextEra
8,956,000
$59.83
14.72%
$535,878
14.62%
NYPA
2,365,170
$4.92
3.89%
$11,637
0.32%
ISO Interchange
8,882,836
$131.27
14.60%
$1,166,032
31.80%
NEMA Congestion
0
$0.00
0.00%
$16,441
0.45%
Coop Resales
14,317
$88.20
0.02%
$1,263
0.03%
MacQuarie
9,204,000
$42.33
15.13%
$389,622
10.63%
Summit Hydro /Collins /Pioneer
660,249
$65.30
1.09%
$43,112
1.18%
Braintree Watson Unit
560,887
$149.75
0.92%
$83,991
2.29%
Swift River Projects
1,010,705
$99.63
1.66%
$100,697
2.75%
Exelon
10,785,600
$49.84
17.72%
$537,509
14.66%
Stonybrook Peaking
65,575
$162.77
0.11%
$10,673
0.29%
Monthly Total
60,851,135
$60.25
100.00%
$3,666,453
100.00%
ATTACHMENT 1
Table 2 breaks down the ISO interchange between the DA LMP Settlement and the RT
Net Energy for the month of December, 2013.
Table 2
Amount Cost % of Total
Resource of Energy of Energy Energy
(kWh) ($ /Mwh)
ISO DA LMP * 9,581,622 128.65 15.75%
Settlement
RT Net Energy "* - 678,786 95.43 -1.12%
Settlement
ISO Interchange 8,882,836 131.27 14.60%
(subtotal)
Independent System Operator Day -Ahead Locational Marginal Price
" Real Time Net Energy
DECEMBER 2013 ENERGY BY RESOURCE
Swift Rive
Projects, 1.
Brain ree Wat
0.936
Sumrrit
lydro,1.1%
Stony brook Peaking, Ntillstona,t3 F t
• Millstone $13
• Seabruuk
)ok 0 Stonyhrook
late, Intermediate
■1P Vorgan
■ NextEra
• NYPA
• ISO Interchange
■ MacQuaric
• Summit Flydro
• Rrainrrea Watsnn Uni-
■ Swift River Projects
• Exelan
Stonybrook Peaking
I E
CAPACITY
The RMLD hit a demand of 115,912 kW, which occurred on December 17, at 6 pm. The
RMLD's monthly UCAP requirement for December, 2013 was 215,700 kWs.
Table 3 shows the sources of capacity that the RMLD utilized to meet its requirements.
Table 3
Source
Amount (kWs)
Cost ($ /kW- month)
Total Cost $
% of Total Cost
Millstone #3
4,950
49.25
$243,771
16.56%
Seabrook
7,903
46.99
$371,357
25.23%
Stonybrook Peaking
24,981
1.96
$48,973
3.33%
Stonybrook CC
42,925
3.24
$139,227
9.46%
NYPA
4,019
4.49
$18,041
1.23%
Hydro Quebec
4,683
4.14
$19,391
1.32%
Nextera
60,000
5.50
$330,000
22.42%
Braintree Watson Unit
10,520
11.28
$118,696
8.06%
ISO -NE Supply Auction
55,719
3.28
$182,670
12.41%
Total
215,700
$6.82
$1,472,126
100.00%
Table 4 shows the dollar amounts for energy and capacity per source.
Table 4
Cost of
% of Amt
of Energy
Power
Resource
Energy
Capacity
Total cost
Total Cost
(kWh)
($ /kWh)
Millstone #3
$27,268
$243,771
$271,039
5.27%
3,701,611
0.0732
Seabrook
$46,400
$371,357
$417,757
8.13%
5,895,553
0.0709
Stonybrook Intermediate
$266,756
$139,227
$405,983
7.90%
1,412,632
0.2874
Hydro Quebec
$0
$19,391
$19,391
0.38%
-
0.0000
JP Morgan
$429,175
$0
$429,175
8.35%
7,336,000
0.0585
NextEra
$535,878
$330,000
$865,878
16.85%
8,956,000
0.0967
* NYPA
$11,637
$18,041
$29,677
0.58%
2,365,170
0.0125
ISO Interchange
$1,166,032
$182,670
$1,348,702
26.25%
8,882,836
0.1518
Nema Congestion
$16,441
$0
$16,441
0.32%
-
0.0000
MacQuarie
$389,622
$0
$389,622
7.58%
9,204,000
0.0423
" Summit Hydro /Collins /Pioneer
$43,112
$0
$43,112
0.84%
660,249
0.0653
Braintree Watson Unit
$83,991
$118,696
$202,687
3.94%
560,887
0.3614
* Swift River Projects
$100,697
$0
$100,697
1.96%
1,010,705
0.0996
Coop Resales
$1,263
$0
$1,263
0.02%
14,317
0.0882
Constellation Energy
$537,509
$0
$537,509
10.46%
10,785,600
0.0498
Stonybrook Peaking
$10,673
$48,973
$59,646
1.16%
65,575
0.9096
Monthly Total
$3,666,453
$1,472,126
$5,138,580
100.00%
60,851,135
0.0844
* Renewable Resources
6.63%
RENEWABLE ENERGY CERTIFICATES (RECs)
Table 5 shows the amount of banked and projected RECs for the Swift River Hydro
Projects through December, 2013, as well as their estimated market value.
TRANSMISSION
The RMLD's total transmission costs for the month of December were $805,214. This is
an increase of 18.8% from the November transmission cost of $678,034. In December,
2012 the transmission costs were $738,628.
Table 6
Current Month
Table 5
Last Year
Peak Demand (kW)
115,912
Swift River RECs Summary
108,921
Energy (kWh)
60,841,227
Period - January 2013 - December
2013
Energy ($)
Banked
Projected Total
Est.
Capacity ($)
RECs
RECs RECs
Dollars
Woronoco
3,652
1,598 5,250
$274,437
Pepperell
1,483
1,510 2,993
$173,594
Indian River
1,251
707 1,958
$113,564
Turners falls
1,172
422 1,594
$0
RECs Sold
4,605
$245,712
Grand Total
7,558
4,237 16,400
$807,307
TRANSMISSION
The RMLD's total transmission costs for the month of December were $805,214. This is
an increase of 18.8% from the November transmission cost of $678,034. In December,
2012 the transmission costs were $738,628.
Table 6
P]
Current Month
Last Month
Last Year
Peak Demand (kW)
115,912
102,274
108,921
Energy (kWh)
60,841,227
55,217,486
59,364,911
Energy ($)
$3,666,453
$1,738,646
$2,868,713
Capacity ($)
$1,472,126
$1,805,123
$1,528,363
Transmission($)
$805,214
$678,034
$738,628
Total
$5,943,794
$4,221,803
$5,135,703
P]
U
z
LL
U
LL
LL
w
L1J
z
W
L
O
4-
dA
L
QJ
C
N
C
ca
C
ca
C
v
0
C
O
Y
0
N
(6
!n
0
c
0
E
cD
i
to
O
Q
r-
0
L
Ln
C
O
U
T
oA
v
C
LU
QJ
Y
E
O
4-
_Y
V)
N
L
v O
•N U
C �
v �
n C:
0 ul
Ln
QJ �
�+ c
O
=
N L
vC
C
E
I— U
L
QJ
T
C
lD
Q
T
v
N
v
C
C6
CD-
0-
C
QJ
L
0
C
3
0
ra
Q)
N
t
N
3
0
N
00
tv
M
O
V
O
O O
Q)
M
N
O
@
Ln
6
Vi
w
O
O
O
N
O
0)
O
to
`
O
r
c
'-
M
`-'
H
W
-'
N
LL
a
m
OD
0
o
o
o o
m
0
N
o
o n
U
U>
n
U>
U>
U>
N
[0
o
�
(3)
Lf)
M
N
to fA
M
D
r
M
O
M
Q
Y
00
O
N
M
x
Cl)
00
N
V
m
O
o
cool
T
t
M
m
M
V
V
`m
>
O
O
M
�
O
Y
O
O
O
O
O
N
N m
o
m
o
N
U)
}
N
U)
U)
a
U)
M
U)
U3
o
o
_rn
rn
w
r
0 o
O
O
o
O
N Q
Lo
Lo
O
W
00
u)
r Q
fA
N
M
In
M
O
N
O
@
N
O
U3
U3
U>
U3
U>
co
Lr)
�
LX)
L
O
O
�
O
O
Y
o
U3
o
o
U)
O
O
[c'
�
Q
m
Q
o)
m
a>
m
m
M
r
o
o.
O
m cam.
M
Q
N
V
m
N
Vl
6
m
OO
N
(D
@
O
M
M
�
(D
O
Ui
T
LO
N
Vi
fA
W
fr
M
co
O
O
m
N
}
�-
LL
O
ll o
o
N
r
C7
(�
0
Q
v
v
v
0
o
0
o
0
0
Y
�
V)
M
�
M
(D
N
O
o
(D
M
N
0)
M
Q
Lf)
o
O
N
!f3
to
L-
O
W
O
L')
E
M
Q
Q
N
V
u)
N
M
>,
t0
Ln
(D
N
r
-t
O
d
N
M
U
O
O
Q
N
..
H
cn
U
U>
U>
cn
cry
U>
U>
M
M
V
3
�°
V
O
(D
Cl)
O
N
I�
OO
v
O
W
OO
r-
c
3:
00
00
M
rn
u�Di
uQi
o0
Y
co
N
O
L-
o
co
O
`-'
M
Ln
LO
0
0
m
M
o
a
Q
Q
(D
r
Q
>
N t
U
Vi
`@
V
Q
°
U)
m
�
r
21
v�
N
m
H
vri
i
U
U
L1J
o
u1
u)
O
u>
O
(D
M
In
N
O
tO
r
u)
N
O
�
N
M
O
V
M
w
@
Y_
o
M
a
r
o
r
O
m
rn
o
N
O
0
(n
O
o
O
O
O
O
r
U
m
Q
o
rn
m
N
N
@
Q
L
V7
o
di
fA
M
fA
fA
M
fA
@
L}
U
N
M
m
M
m
M
(h
r
V
r
V
O
O
o
O
o o
o
CD
r
m
u
r m
N
N
m
:
L
LL
LL
LL
LL
LL
o
� o
m
u1 F-
N
r1
r1
a
K d
m
c
c
O
c
a1
E
E
h
m
N
(3)
N
cl
�
E
O
o
N
o
7 N
O 3
O
O
F�
U
H
U
w
H
U
L-
1-
U
L
QJ
T
C
lD
Q
T
v
N
v
C
C6
CD-
0-
C
QJ
L
0
C
3
0
ra
Q)
N
t
N
3
0
N
00
tv
m
m o rn V1 m u1 r n
m O N co m m n
Q N Q M N n
O
O
O O
@
�
to
f9 fA
to
m
H
LL
a
o
o
o o
m
N
o
o n
N
[0
o
�
fA
69
to fA
}
Q)
Q
N u7
x
a
O
o
cool
T
_
`m
V
N m
o
m
o
N
U)
}
a
a
o
r
0 o
O
O
o
O
N Q
O
m
Q
u)
r Q
N
m
N
@
n
�
N
�
d
o
o
o
o
O
O
Q
m
Q
o)
m
a>
m
m
M
r
o
o.
O
m cam.
Q
Q
Co
m
N
Vl
m
@
�
fA
Ui
(f3
W
Vi
fA
f9 U
m
}
O
O
ll o
o
N
r
C7
(�
0
Q
O
0
o
0
o
0
0
u
11.
(0
@
o
O
V3
!f3
to
fA
t9
W
6
E
M
Q
r
m
u)
r
u) c
d
O
O
o
N
N
o
O G
C
U
3
�°
°
o
v
c
c
d
c`nn
u�Di
uQi
(QO
c
o
0
0
0
o
o
o
Q
(D
N
Q
N
N t
U
Vi
`@
Q
°
m
�
r
v�
v�
N
m
H
vri
i
U
U
o
u1
u)
O
u>
O
r
O
N
r
u)
N
O
�
N
w
@
o
r
o
r
r
m
rn
o
O
0
O
o
O
O
O
O
r
o
r
m
Q
o
rn
N
N
@
L
V7
o
di
fA
M
fA
fA
M
fA
@
L}
N
M
m
�2
m
(h
O
O
o
O
o o
o
r
m
u
r m
N
N
m
O)
r t0
O
o@
o
� o
m
u1 F-
N
r1
r1
r1 r1
K d
7
h
m
N
(3)
N
cl
U
�
N
o
N
N
N
mo
m
m o rn V1 m u1 r n
m O N co m m n
Q N Q M N n
'`.
Dt: January 27, 2014
To: RMLB, Coleen O'Brien, Jeanne Foti
Fr: Bob Fournier
Sj: December 31, 2013 Report
The results for the first six months ending December 31, 2013, for the fiscal year
2014 will be summarized in the following paragraphs.
1) Change in Net Assets: (Page 3A)
For the month of December, the net loss or the negative change in net assets was
$1,789,371 decreasing the year to date net income to $161,162. The year to date
budgeted net income was $2,970,944, resulting in net income being under budget
by $2,809,781 or 94.6 %. Actual year to date fuel expenses exceeded fuel
revenues by $234,358.
2) Revenues: (Page 11B)
Year to date base revenues were under budget by $1,121,993 or 4.5 %. Actual
base revenues were $23.6 million compared to the budgeted amount of $24.7
million.
3 (Page Expenses: 12A
P ( g )
*Year to date purchased power base expense was over budget by $73,707 or
.50 %. Actual purchased power base costs were $14.8 million compared to the
budgeted amount of $14.7 million.
*Year to date operating and maintenance (O &M) expenses combined were under
budget by $291,051 or 4.5 %. Actual O &M expenses were $6.1 million compared
to the budgeted amount of $6.4 million.
*Depreciation expense and voluntary payments to the Towns were on budget.
4) Cash: (Page 9)
*Operating Fund was at $10,247,798.
* Capital Fund balance was at $4,555,865.
* Rate Stabilization Fund was at $6,701,132.
* Deferred Fuel Fund was at $2,375,129.
* Energy Conservation Fund was at $411,548.
5) General Information:
Year to date kwh sales (Page 5) were 362,553,798 which is 5.4 million kwh or
1.5 %, behind last year's actual figure. GAW revenues collected ytd were
$362,332, bringing the total collected since inception to $2,406,884.
6) Budget Variance:
Cumulatively, the five divisions were under budget by $289,315 or 2.8 %.
ATTACHMENT 2
r�
u
FINANCIAL REPORT
` DECEMBER 31, 2013
ISSUE DATE: JANUARY 28, 2014
ASSETS
CURRENT
UNRESTRICTED CASH
RESTRICTED CASH
INVESTMENTS
RECEIVABLES, NET
PREPAID EXPENSES
INVENTORY
TOTAL CURRENT ASSETS
NONCURRENT
INVESTMENT IN ASSOCIATED CO
CAPITAL ASSETS, NET
TOTAL NONCURRENT ASSETS
TOTAL ASSETS
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
BUSINESS -TYPE PROPRIETARY FUND
STATEMENT OF NET ASSETS
12/31/13
PREVIOUS YEAR CURRENT YEAR
(SCH A
P.9)
11,174,080.97
10,250,798.40
(SCE A
P.9)
17,677,388.65
17,148,700.97
(SCH A
P.9)
0.00
850,000.00
(SCH B
P.10)
7,923,202.02
6,856,319.03
(SCH B
P.10)
11989,659.10
1,529,593.74
1,456,654.48
1,519,286.11
40,220,985.22
38,154,698.25
(SCH C P.2)
(SCH C P.2)
LIABILITIES
CURRENT
ACCOUNTS PAYABLE
CUSTOMER DEPOSITS
CUSTOMER ADVANCES FOR CONSTRUCTION
ACCRUED LIABILITIES
TOTAL CURRENT LIABILITIES
NONCURRENT
ACCRUED EMPLOYEE COMPENSATED ABSENCES
TOTAL NONCURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT
RESTRICTED FOR DEPRECIATION FUND (P.9)
UNRESTRICTED
TOTAL NET ASSETS (P.3)
TOTAL LIABILITIES AND NET ASSETS
(1)
46,958.35 31,379.32
69,851,692.15 69,875,363.39
69.898.650.50 69.906.742.71
110.119.635.72 108.061.440.96
6,467,113.58 5,526,407.06
659,170.42 719,656.51
394,781.15 399,624.15
1,388,110.36 52,044.21
8,909,175.51 6,697,731.93
2,986,360.21 2,885,367.88
2.986.360.21 2,885,367.88
11,895,535.72 9,583,099.81
69,851,692.15 69,875,363.39
3,458,260.56 4,555,865.98
24,914,147.29 24,047,111.78
98,224,100.00 98,478,341.15
110,119,635.72 108,061,440.96
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
NONCURRENT ASSET SCHEDULE
12/31/13
SCHEDULE C
PREVIOUS YEAR
SCHEDULE OF INVESTMENTS IN ASSOCIATED COMPANIES
NEW ENGLAND HYDRO ELECTRIC 2,975.74
NEW ENGLAND HYDRO TRANSMISSION 43,982.61
TOTAL INVESTMENTS IN ASSOCIATED COMPANIES 46,958.35
SCHEDULE OF CAPITAL ASSETS
LAND 1,265,842.23
STRUCTURES AND IMPROVEMENTS 6,762,569.28
EQUIPMENT AND FURNISHINGS 13,008,885.40
INFRASTRUCTURE 48,814,395.24
TOTAL CAPITAL ASSETS, NET 69,851,692.15
TOTAL NONCURRENT ASSETS 69,898,650.50
(2)
CURRENT YEAR
3,261.87
28,117.45
31,379.32
1,265,842.23
6,430,835.66
12,562,608.11
49,616,077.39
69,875,363.39
69,906,742.71
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
BUSINESS -TYPE PROPRIETARY FUND
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
12/31/13
OPERATING REVENUES: (SCH D P.11)
BASE REVENUE
FUEL REVENUE
PURCHASED POWER CAPACITY
FORFEITED DISCOUNTS
ENERGY CONSERVATION REVENUE
GAW REVENUE
NYPA CREDIT
TOTAL OPERATING REVENUES
OPERATING EXPENSES: (SCH E P.12)
PURCHASED POWER BASE
PURCHASED POWER FUEL
OPERATING
MAINTENANCE
DEPRECIATION
VOLUNTARY PAYMENTS TO TOWNS
TOTAL OPERATING EXPENSES
OPERATING INCOME
NONOPERATING REVENUES (EXPENSES)
CONTRIBUTIONS IN AID OF CONST
RETURN ON INVESTMENT TO READING
INTEREST INCOME
INTEREST EXPENSE
OTHER (MDSE AND AMORT)
TOTAL NONOPERATING REV (EXP)
CHANGE IN NET ASSETS
NET ASSETS AT BEGINNING OF YEAR
NET ASSETS AT END OF DECEMBER
MONTH MONTH LAST YEAR CURRENT YEAR
LAST YEAR CURRENT YEAR TO DATE TO DATE
3,553,437.52
3,407,106.78
23,799,712.30
23,596,135.94
2,987,105.82
2,053,822.16
18,010,954.68
15,837,781.93
164,559.67
29,218.12
1,114,191.34
164,733.73
73,051.41
88,653.57
510,820.16
461,368.36
53,466.50
61,730.97
362,244.05
356,854.83
54,323.79
51,361.77
367,799.21
362,332.15
(68.965.36)
(45,701.57)
(293.264.30)
(272,672.30)
6,816,979.35 5,646,191.80 43,872,457.44 40,506,534.64
YTD %
CHANGE
-0.86%
- 12.07%
- 85.21%
-9.68%
-1.49%
-1.49%
-7.02%
-7.67%
2,268,056.90
2,293,610.22
14,443,198.80
14,800,423.31
2.47%
2,868,712.69
3,666,453.24
18,015,541.22
15,799,467.37
- 12.30%
842,340.12
628,919.09
4,943,799.84
4,775,785.43
-3.40%
233,815.92
231,917.37
1,252,805.90
1,392,435.79
11.15%
305,469.18
314,969.55
1,832,815.08
1,889,817.30
3.11%
107,383.00
115,183.65
677,383.00
698,517.00
3.12%
6,625,777.81 7,251,053.12 41,165,543.84 39,356,446.20 -4.39%
191,201.54 (1,604,861.32) 2,706,913.60 1,150,088.44 - 57.51%
0.00
0.00
46,478.95
23,066.88
- 50.37%
(188,785.60)
(191,768.41)
(1,132,713.50)
(1,150,610.50)
1.58%
2,466.56
5,819.92
17,274.18
23,380.78
35.35%
(1,317.73)
(1,394.32)
(2,607.85)
(2,685.91)
2.99%
2,127.00
2,833.00
54,694.63
117,922.67
115.60%
(185,509.77)
(184,509.81)
(1,016,873.59)
(988,926.08)
-2.75%
5,691.77
(1,789,371.13)
1,690,040.01
161,162.36
- 90.46%
96,534,059.99 98,317,178.79 1.85%
98,224,100.00 98,478,341.15 0.26%
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
BUSINESS -TYPE PROPRIETARY FUND
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
12/31/13
OPERATING REVENUES: (SCH F P.11B)
BASE REVENUE
FUEL REVENUE
PURCHASED POWER CAPACITY
FORFEITED DISCOUNTS
ENERGY CONSERVATION REVENUE
GAW REVENUE
NYPA CREDIT
TOTAL OPERATING REVENUES
OPERATING EXPENSES: (SCH G P.12A)
PURCHASED POWER BASE
PURCHASED POWER FUEL
OPERATING
MAINTENANCE
DEPRECIATION
VOLUNTARY PAYMENTS TO TOWNS
TOTAL OPERATING EXPENSES
OPERATING INCOME
NONOPERATING REVENUES (EXPENSES)
CONTRIBUTIONS IN AID OF CONST
RETURN ON INVESTMENT TO READING
INTEREST INCOME
INTEREST EXPENSE
OTHER (MDSE AND AMORT)
TOTAL NONOPERATING REV (EXP)
CHANGE IN NET ASSETS
NET ASSETS AT BEGINNING OF YEAR
NET ASSETS AT END OF DECEMBER
* ( ) . ACTUAL UNDER BUDGET
ACTUAL BUDGET %
YEAR TO DATE YEAR TO DATE VARIANCE* CHANGE
23,596,135.94
24,718,129.00
(1,121,993.06)
15,837,781.93
17,128,980.00
(1,291,198.07)
164,733.73
552,607.00
(387,873.27)
461,368.36
543,799.00
(82,430.64)
356,854.83
371,928.00
(15,073.17)
362,332.15
371,928.00
(9,595.85)
(272,672.30)
(349,998.00)
77,325.70
40,506,534.64 43,337,373.00 (2,830,838.36)
-4.54%
-7.54%
- 70.19%
- 15.16%
-4.05%
-2.58%
- 22.09%
-6.53%
14,800,423.31
14,726,716.00
73,707.31
0.50%
15,799,467.37
15,685,546.00
113,921.37
0.73%
4,775,785.43
4,853,919.00
(78,133.57)
-1.61%
1,392,435.79
1,605,354.00
(212,918.21)
- 13.26%
1,889,817.30
1,887,600.00
2,217.30
0.12%
698 517_.00
699,996.00
(1,479.00)
-0.21%
39,356,446.20 39,459,131.00 (102,684.80) -0.26%
1,150,088.44 3,878,242.00 (2,728,153.56) - 70.35%
23,066.88
100,000.00
(76,933.12)
- 76.93%
(1,150,610.50)
(1,150,800.00)
189.50
-0.02%
23,380.78
25,002.00
(1,621.22)
-6.48%
(2,685.91)
(11500.00)
(11185.91)
79.06%
117,922.67
120,000.00
(2,077.33)
-1.73%
(988,926.08)
(907,298.00)
(81,628.08)
9.00%
161,162.36 2,970,944.00 (2,809,781.64)
98,317,178.79 98,317,178.79 0.00
98,478,341.15 101,288,122.79 (2,809,781.64)
(3A)
- 94.58%
0.00%
-2.77%
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
RECONCILIATION OF CAPITAL FUNDS
12/31/13
SOURCE OF CAPITAL FUNDS:
DEPRECIATION FUND BALANCE 7/1/13
CONSTRUCTION FUND BALANCE 7/1/13
INTEREST ON DEPRECIATION FUND FY 14
DEPRECIATION TRANSFER FY 14
TOTAL SOURCE OF CAPITAL FUNDS
USE OF CAPITAL FUNDS:
LESS PAID ADDITIONS TO PLANT THRU DECEMBER
GENERAL LEDGER CAPITAL FUNDS BALANCE 12/31/13
(4)
2,733,146.78
11500,000.00
3,664.98
1,889,817.30
6,126,629.06
1,570,763.08
4,555,865.98
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
SALES OF KILOWATT HOURS
12/31/13
MUNICIPAL SALES:
STREET LIGHTING
MONTH
MONTH
LAST YEAR
CURRENT YEAR
YTD %
SALES OF ELECTRICITY:
LAST YEAR
CURRENT YEAR
TO DATE
TO DATE
CHANGE
RESIDENTIAL SALES
20,523,493
19,444,759
137,688,875
136,078,198
-1.17%
COMM. AND INDUSTRIAL SALES
31,171,712
29,616,270
215,145,891
211,200,809
-1.83%
PRIVATE STREET LIGHTING
73,981
75,285
439,836
446,206
1.45%
TOTAL PRIVATE CONSUMERS
51,769,186
49,136,314
353,274,602
347,725,213
-1.57%
MUNICIPAL SALES:
STREET LIGHTING
238,739
240,021
1,427,862
1,438,286
MUNICIPAL BUILDINGS
774,496
767,060
4,810,821
4,721,667
TOTAL MUNICIPAL CONSUMERS
1,013,235
1,007,081
6,238,683
6,159,953
SALES FOR RESALE
230,686
196,018
1,808,233
1,784,940
SCHOOL
1,297,382
1,257,107
6,605,841
6,883,692
TOTAL KILOWATT HOURS SOLD
54,310,489
51,596,520
367,927,359
362,553,798
(5)
0.73%
-1.85%
-1.26%
-1.29%
4.21%
-1.46%
MONTH
YEAR TO DATE
LAST YEAR
TO DATE
RESIDENTIAL
COMM & IND
PVT ST LIGHTS
PUB ST LIGHTS
MUNI BLDGS
SALES /RESALE
SCHOOL
TOTAL
RESIDENTIAL
COMB & IND
PVT ST LIGHTS
PUB ST LIGHTS
MUNI BLDGS
SALES /RESALE
SCHOOL
TOTAL
RESIDENTIAL
COMM & IND
PVT ST LIGHTS
PUB ST LIGHTS
MUNI BLDGS
SALES /RESALE
SCHOOL
TOTAL
KILOWATT HOURS SOLD TO TOTAL
MONTH
YEAR TO DATE
LAST YEAR
TO DATE
RESIDENTIAL
COMM & IND
PVT ST LIGHTS
PUB ST LIGHTS
MUNI BLDGS
SALES /RESALE
SCHOOL
TOTAL
RESIDENTIAL
COMM & IND
PVT ST LIGHTS
PUB ST LIGHTS
MUNI BLDGS
SALES /RESALE
SCHOOL
TOTAL
RESIDENTIAL
COMM & IND
PVT ST LIGHTS
PUB ST LIGHTS
MUNI BLDGS
SALES /RESALE
SCHOOL
TOTAL
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
KILOWATT HOURS S 2/31/SOLD BY TOWN
TOTAL READING LYNNFIELD
NO.READING WILMINGTON
19,444,759
5,821,370
2,841,844
4,317,459
6,464,086
29,616,270
3,626,678
259,959
4,088,551
21,641,082
75,285
13,129
1,470
22,468
38,218
240,021
80,702
32,500
42,132
84,687
767,060
228,172
152,669
116,864
269,355
196,018
196,018
0
0
0
1,257,107
421,572
288,125
160,320
387,090
51,596,520
10,387,641
3,576,567
8,747,794
28,884,518
136,078,198
42,364,763
19,578,083
31,553,350
42,582,002
211,200,809
25,831,508
1,718,672
32,421,331
151,229,298
446,206
78,774
8,270
133,298
225,864
1,438,286
484,032
195,000
251,232
508,022
4,721,667
1,172,195
946,931
890,094
1,712,447
1,784,940
1,784,940
0
0
0
6,883,692
2,477,598
1,582,622
824,360
1,999,112
362,553,798
74,193,810
24,029,578
66,073,665
198,256,745
137,688,875
42,694,379
20,030,501
31,932,213
43,031,782
215,145,891
26,622,060
1,647,273
33,112,087
153,764,471
439,836
81,510
8,160
128,292
221,874
1,427,862
483,216
194,960
242,524
507,162
4,810,821
1,141,751
857,999
991,280
1,819,791
1,808,233
1,808,233
0
0
0
6,605,841
2,336,285
1,445,590
828,800
1,995,166
367,927,359
75,167,434
24,184,483
67,235,196
201,340,246
TOTAL
READING
LYNNFIELD
NO.READING
WILMINGTON
37.69%
11.28%
5.51%
8.37%
12.53%
57.39%
7.03%
0.50%
7.92%
41.94%
0.14%
0.03%
0.00%
0.04%
0.07%
0.47%
0.16%
0.06%
0.08%
0.17%
1.49%
0.44%
0.30%
0.23%
0.52%
0.38%
0.38%
0.00%
0.00%
0.00%
2.44%
0.82%
0.56%
0.31%
0.75%
100.00%
20.14%
6.93%
16.95%
55.98%
37.54%
11.69%
5.40%
8.70%
11.75%
58.25%
7.12%
0.47%
8.94%
41.72%
0.12%
0.02%
0.00%
0.04%
0.06%
0.40%
0.13%
0.05%
0.07%
0.15%
1.30%
0.32%
0.26%
0.25%
0.47%
0.49%
0.49%
0.00%
0.00%
0.00%
1.90%
0.68%
0.44%
0.23%
0.55%
100.00%
20.45%
6.62%
18.23%
54.70%
37.42%
11.60%
5.44%
8.68%
11.70%
58.48%
7.24%
0.45%
9.00%
41.79%
0.11%
0.02%
0.00%
0.03%
0.06%
0.39%
0.13%
0.05%
0.07%
0.14%
1.31%
0.31%
0.23%
0.27%
0.50%
0.49%
0.49%
0.00%
0.00%
0.00%
1.80%
0.63%
0.39%
0.23%
0.55%
100.00%
20.42%
6.56%
18.281%
54.7416
(6)
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
FORMULA INCOME
12/31/13
TOTAL OPERATING REVENUES (P.3)
ADD:
LESS:
POLE RENTAL
INTEREST INCOME ON CUSTOMER DEPOSITS
OPERATING EXPENSES (P.3)
CUSTOMER DEPOSIT INTEREST EXPENSE
FORMULA INCOME (LOSS)
(7)
40,506,534.64
77,296.08
893.87
(39,356,446.20)
(2,685.91)
1,225,592.48
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
GENERAL STATISTICS
12/31/13
(8)
MONTH OF
MONTH OF
% CHANGE
YEAR
THRU
DEC 2012
DEC 2013
2012
2013
DEC 2012
DEC 2013
SALE OF KWH (P.5)
54,310,489
51,596,520
1.43%
-1.46%
367,927,359
362,553,798
KWH PURCHASED
59,364,911
60,841,227
2.37%
-1.76%
382,882,746
376,133,944
AVE BASE COST PER KWH
0.038205
0.037698
8.84%
4.31%
0.037722
0.039349
AVE BASE SALE PER KWH
0.065428
0.066034
-0.30%
0.61%
0.064686
0.065083
AVE COST PER KWH
0.086529
0.097961
-2.05%
-4.04%
0.084775
0.081354
AVE SALE PER KWH
0.120429
0.105839
-4.05%
-4.29%
0.113638
0.108767
FUEL CHARGE REVENUE (P.3)
2,987,105.82
2,053,822.16
-7.29%
- 12.07%
18,010,954.68
15,837,781.93
LOAD FACTOR
74.66%
71.90%
C LOAD
108,921
115,912
(8)
O
^C,
1-10
9
J
7
e AO
d
cle
�
"fb
`` 6n
J
!� JO
�! S
J
!l��n
!`��
6n
O�
J�
O
In
O
LC)
O
U)
O
m
1`
UD
d-
N
r-
O
O
O
O
O
O
O
O
O
O
O
O
Ef}
60-
619-
{f}
ff}
6F}
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
SCHEDULE OF CASH AND INVESTMENTS
12/31/13
PREVIOUS YEAR
UNRESTRICTED CASH
CASH - OPERATING FUND 11,171,080.97
CASH - PETTY CASH 3,000.00
TOTAL UNRESTRICTED CASH 11,174,080.97
RESTRICTED CASH
CASH - DEPRECIATION FUND
CASH - DEFERRED FUEL RESERVE
CASH - RATE STABILIZATION FUND
CASH - UNCOLLECTIBLE ACCTS RESERVE
CASH - SICK LEAVE BENEFITS
CASH - HAZARD WASTE RESERVE
CASH - CUSTOMER DEPOSITS
CASH - ENERGY CONSERVATION
CASH - OPEB
TOTAL RESTRICTED CASH
INVESTMENTS
SICK LEAVE BUYBACK
TOTAL CASE BALANCE
ME
3,458,260.56
1,972,193.64
6,686,773.58
200,000.00
2,986,360.21
150,000.00
659,170.42
218,231.21
1,346,399.03
17,677,388.65
0.00
28,851,469.62
SCHEDULE A
10,247,798.40
3,000.00
10,250,798.40
4,555,865.98
2,375,129.64
6,701,132.09
200,000.00
2,035,367.88
150,000.00
719,656.51
411,548.87
0.00
17,148,700.97
850,000.00
28,249,499.37
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
SCHEDULE OF ACCOUNTS RECEIVABLE
12/31/13
UNBILLED ACCOUNTS RECEIVABLE 4,915,936.83
TOTAL ACCOUNTS RECEIVABLE, NET 7,923,202.02
SCHEDULE OF PREPAYMENTS
PREPAID INSURANCE
PREVIOUS YEAR
SCHEDULE OF ACCOUNTS RECEIVABLE
230,424.89
RESIDENTIAL AND COMMERCIAL
3,355,859.22
ACCOUNTS RECEIVABLE - OTHER
136,408.86
ACCOUNTS RECEIVABLE — LIENS
46,198.20
ACCOUNTS RECEIVABLE — EMPLOYEE ADVANCES
892.14
SALES DISCOUNT LIABILITY
(278,023.29)
RESERVE FOR UNCOLLECTIBLE ACCOUNTS
(254,069.94)
TOTAL ACCOUNTS RECEIVABLE BILLED
3,007,265.19
UNBILLED ACCOUNTS RECEIVABLE 4,915,936.83
TOTAL ACCOUNTS RECEIVABLE, NET 7,923,202.02
SCHEDULE OF PREPAYMENTS
PREPAID INSURANCE
1,317,946.94
PREPAYMENT PURCHASED POWER
230,424.89
PREPAYMENT NYPA
241,849.32
PREPAYMENT WATSON
184,914.25
PURCHASED POWER WORKING CAPITAL
14,523.70
TOTAL PREPAYMENT 1,989,659.10
ACCOUNTS RECEIVABLE AGING DECEMBER 2013:
RESIDENTIAL AND COMMERCIAL
2,970,327.56
LESS: SALES DISCOUNT LIABILITY
(256,649.05)
GENERAL LEDGER BALANCE
2,713,678.51
CURRENT
2,244,131.09
82.70%
30 DAYS
292,202.96
10.77%
60 DAYS
89,396.23
3.29%
90 DAYS
45,283.42
1.67%
OVER 90 DAYS
42,664.81
1.57%
TOTAL
2,713,678.51
100.00%
cio>
SCHEDULE B
CURRENT YEAR
2,970,327.56
174,697.25
37,169.47
892.14
(256,649.05)
(228,140.84)
2,698,296.53
4,158,022.50
6,856,319.03
1,301,586.22
(182,311.68)
242,260.90
153,534.60
14,523.70
1,529,593.74
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
SCHEDULE OF OPERATING REVENUE
12/31/13
(ii)
SCHEDULE D
MONTH
MONTH
LAST YEAR
CURRENT YEAR
YTD $
SALES OF ELECTRICITY:
LAST YEAR
CURRENT YEAR
TO DATE
TO DATE
CHANGE
RESIDENTIAL SALES
2,729,606.47
2,304,281.88
17,433,342.06
16,596,559.56
-4.80%
COMM AND INDUSTRIAL SALES
3,503,166.95
2,894,470.89
22,663,569.84
21,194,792.60
-6.48%
PRIVATE STREET LIGHTING
6,312.61
5,310.21
34,976.18
32,996.98
-5.66%
TOTAL PRIVATE CONSUMERS
6,239,086.03
5,204,062.98
40,131,888.08
37,824,349.14
-5.75%
MUNICIPAL SALES:
STREET LIGHTING
29,316.83
25,915.65
169,102.13
160,116.25
-5.31%
MUNICIPAL BUILDINGS
94,302.63
82,592.19
556,189.90
522,497.85
-6.06%
TOTAL MUNICIPAL CONSUMERS
123,619.46
108,507.84
725,292.03
682,614.10
-5.88%
SALES FOR RESALE
28,558.73
21,353.23
212,524.20
201,562.25
-5.16%
SCHOOL
149,279.12
127,004.89
740,962.67
725,392.38
-2.10%
SUB -TOTAL
6,540,543.34
5,460,928.94
41,810,666.98
39,433,917.87
-5.68%
FORFEITED DISCOUNTS
73,051.41
88,653.57
510,820.16
461,368.36
-9.68%
PURCHASED POWER CAPACITY
164,559.67
29,218.12
1,114,191.34
164,733.73
- 85.21%
ENERGY CONSERVATION - RESIDENTIAL
20,537.34
19,456.48
137,763.53
136,150.72
-1.17%
ENERGY CONSERVATION - COMMERCIAL
32,929.16
42,274.49
224,480.52
220,704.11
-1.68%
GAW REVENUE
54,323.79
51,361.77
367,799.21
362,332.15
-1.49%
NYPA CREDIT
(68,965.36)
(45,701.57)
(293,264.30)
(272,672.30)
-7.02%
TOTAL REVENUE
43,872,457.44
-7.67%
6,816,979.35
5,646,191.80
40,506,534.64
(ii)
MONTH
RESIDENTIAL
INDUS /MUNI BLDG
PUB.ST.LIGHTS
PRV.ST.LIGHTS
CO -OP RESALE
SCHOOL
TOTAL
THIS YEAR TO DATE
RESIDENTIAL
INDUS /MUNI BLDG
PUB.ST.LIGHTS
PRV.ST.LIGHTS
CO -OP RESALE
SCHOOL
TOTAL
LAST YEAR TO DATE
RESIDENTIAL
INDUS /MUNI BLDG
PUB.ST.LIGHTS
PRV.ST.LIGHTS
CO -OP RESALE
SCHOOL
TOTAL
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
SCHEDULE OF OPERATING REVENUE BY TOWN
12/31/13
TOTAL
READING
LYNNFIELD
NO.READING
WILMINGTON
2,304,281.88
694,253.90
334,516.40
511,468.98
764,042.60
2,977,063.08
413,246.20
44,625.15
443,897.35
2,075,294.38
25,915.65
8,409.03
3,316.03
4,621.45
9,569.14
5,310.21
913.53
100.44
1,646.32
2,649.92
21,353.23
21,353.23
0.00
0.00
0.00
127,004.89
43,271.25
28,296.11
16,792.12
38,645.41
5,460,928.94
1,181,447.14
410,854.13
978,426.22
2,890,201.45
17.92%
52.92%
16,596,559.56
5,193,848.19
2,374,662.43
3,848,620.33
5,179,428.61
21,717,290.45
2,920,532.11
292,158.92
3,457,590.47
15,047,008.95
160,116.25
52,046.58
20,548.13
28,422.34
59,099.20
32,996.98
5,765.57
599.63
10,212.97
16,418.81
201,562.25
201,562.25
0.00
0.00
0.00
725,392.38
262,793.76
163,641.43
89,980.61
208,976.58
39,433,917.87
8,636,548.46
2u851, 610. 52
7,434,826.73
20,510,932.16
17,433,342.06
5,427,399.50
2,520,672.58
4,038,048.41
5,447,221.57
23,219,759.74
3,130,326.92
287,025.32
3,699,297.06
16,103,110.44
169,102.13
54,663.12
21,629.72
31,007.29
61,802.00
34,976.18
6,392.22
639.08
10,564.41
17,380.47
212,524.20
212,524.20
0.00
0.00
0.00
740,962.67
264,439.69
160,141.19
95,717.76
220,664.03
41,810,666.98
9,095,745.65
2,990,107.89
7,874,634.93
21,850,178.51
PERCENTAGE OF OPERATING INCOME TO TOTAL
TOTAL READING LYNNFIELD NO.READING WILMINGTON
1'.IQ,v"
RESIDENTIAL
42.20%
12.71%
6.13%
9.37%
13.99%
INDUS /MUNI BLDG
54.51%
7.57%
0.82%
8.13%
37.99%
PUB.ST.LIGHTS
0.47%
0.15%
0.06%
0.08%
0.18%
PRV.ST.LIGHTS
0.10%
0.02%
0.00%
0.03%
0.05%
CO -OP RESALE
0.39%
0.39%
0.00%
0.00%
0.00%
SCHOOL
2.33%
0.79%
0.52%
0.31%
0.71%
TOTAL
100.00%
21.63%
7.53%
17.92%
52.92%
THIS YEAR TO DATE
RESIDENTIAL
42.09%
13.17%
6.02%
9.76%
13.14%
INDUS /MUNI BLDG
55.07%
7.41%
0.74%
8.77%
38.15%
PUB.ST.LIGHTS
0.41%
0.13%
0.05%
0.07%
0.16%
PRV.ST.LIGHTS
0.08%
0.01%
0.00%
0.03%
0.04%
CO -OP RESALE
0.51%
0.51%
0.00%
0.00%
0.00%
SCHOOL
1.84%
0.67%
0.41$
0.23%
0.53%
TOTAL
100.00$
21.90%
7.22%
18.86%
52.02$
LAST YEAR TO DATE
RESIDENTIAL
41.70%
12.98%
6.03%
9.66%
13.03%
INDUS /MUNI BLDG
55.54%
7.49%
0.69%
8.85%
38.51$
PUB.ST.LIGHTS
0.40%
0.13%
0.05%
0.07%
0.15Y
PRV.ST.LIGHTS
0.08%
0.02%
0.00%
0.03%
0.03%
CO -OP RESALE
0.51%
0.51%
0.00%
0.00%
0.00%
SCHOOL
1.77%
0.63%
0.38%
0.23%
0.53%
TOTAL 100.00$ 21.7b% 7.15% 18.84% 52.25%
(11A)
SALES OF ELECTRICITY:
RESIDENTIAL
COMM AND INDUSTRIAL SALES
PRIVATE STREET LIGHTING
MUNICIPAL BUILDINGS
PUBLIC STREET LIGHTING
SALES FOR RESALE
SCHOOL
TOTAL BASE SALES
TOTAL FUEL SALES
TOTAL OPERATING REVENUE
FORFEITED DISCOUNTS
PURCHASED POWER CAPACITY
ENERGY CONSERVATION - RESIDENTIAL
ENERGY CONSERVATION - COMMERCIAL
GAW REVENUE
PASNY CREDIT
TOTAL OPERATING REVENUES
* ( ) . ACTUAL UNDER BUDGET
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
BUDGETED REVENUE VARIANCE REPORT
12/31/13
SCHEDULE F
ACTUAL
BUDGET
%
YEAR TO DATE
YEAR TO DATE
VARIANCE *
CHANGE
10,616,317.06
11,172,639.00
(556,321.94)
-4.98%
12,328,303.01
12,878,525.00
(550,221.99)
-4.27%
97,794.74
99,950.00
(2,155.26)
-2.16%
123,159.92
148,263.00
(25,103.08)
- 16.93%
430,561.21
418,752.00
11,809.21
2.82%
23,596,135.94
24,718,129.00
(1,121,993.06)
-4.54%
15,837,781.93
17,128,980.00
(1,291,198.07)
-7.54%
39,433,917.87
41,847,109.00
(2,413,191.13)
-5.77%
461,368.36
543,799.00
(82,430.64)
- 15.16%
164,733.73
552,607.00
(387,873.27)
- 70.19%
136,150.72
138,689.00
(2,538.28)
-1.83%
220,704.11
233,239.00
(12,534.89)
-5.37%
362,332.15
371,928.00
(9,595.85)
-2.58%
(272,672.30)
(349,998.00)
77,325.70
- 22.09%
(2,830,838.36)
-6.53%
40,506,534.64
43,337,373.00
tile)
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
SCHEDULE OF OPERATING EXPENSES
12/31/13
SCHEDULE E
MAINTENANCE EXPENSES:
MAINT OF TRANSMISSION PLANT
MAINT OF STRUCT AND EQUIPMT
MAINT OF LINES - OH
MAINT OF LINES - UG
MAINT OF LINE TRANSFORMERS
MAINT OF ST LT & SIG SYSTEM
MAINT OF GARAGE AND STOCKROOM
MAINT OF METERS
MAINT OF GEN PLANT
TOTAL MAINTENANCE EXPENSES
DEPRECIATION EXPENSE
PURCHASED POWER FUEL EXPENSE
VOLUNTARY PAYMENTS TO TOWNS
TOTAL OPERATING EXPENSES
227.00
MONTH
MONTH
LAST YEAR
CURRENT YEAR
YTD %
OPERATION EXPENSES:
LAST YEAR
CURRENT YEAR
TO DATE
TO DATE
CHANGE
PURCHASED POWER BASE EXPENSE
2,268,056.90
2,293,610.22
14,443,198.80
14,800,423.31
2.47%
OPERATION SUP AND ENGINEERING EXP
36,686.24
39,095.46
259,584.04
257,164.91
-0.93%
STATION SUP LABOR AND MISC
2,107.19
8,481.58
36,396.42
54,298.17
49.19%
LINE MISC LABOR AND EXPENSE
63,980.57
76,771.06
338,015.00
381,212.33
12.78%
STATION LABOR AND EXPENSE
38,082.30
38,488.54
273,878.81
249,717.13
-8.82%
STREET LIGHTING EXPENSE
8,139.05
6,094.62
39,078.71
36,602.86
-6.34%
METER EXPENSE
14,166.04
18,399.52
92,169.77
103,874.05
12.70%
MISC DISTRIBUTION EXPENSE
28,025.96
33,668.17
170,903.21
174,751.63
2.25%
METER READING LABOR & EXPENSE
6,867.90
1,707.63
45,286.59
15,236.98
- 66.35%
ACCT & COLL LABOR & EXPENSE
136,721.81
132,397.95
755,193.40
760,121.83
0.65%
UNCOLLECTIBLE ACCOUNTS
8,333.33
10,500.00
49,999.98
63,000.00
26.00%
ENERGY AUDIT EXPENSE
35,891.84
32,763.47
234,891.04
216,549.81
-7.81%
ADMIN & GEN SALARIES
65,415.46
65,872.59
379,930.17
430,365.11
13.27%
OFFICE SUPPLIES & EXPENSE
19,916.46
24,842.59
118,339.90
137,227.11
15.96%
OUTSIDE SERVICES
16,089.47
55,789.68
199,101.09
208,516.70
4.73%
PROPERTY INSURANCE
31,678.32
29,925.89
190,317.42
179,555.99
-5.65%
INJURIES AND DAMAGES
3,940.15
3,384.53
23,202.29
19,803.15
- 14.65%
EMPLOYEES PENSIONS & BENEFITS
272,348.48
(71,993.48)
1,096,174.21
1,059,076.00
-3.38%
MISC GENERAL EXPENSE
17,819.61
25,781.43
100,413.74
98,406.29
-2.00%
RENT EXPENSE
13,827.16
13,786.36
103,750.18
95,835.68
-7.63%
ENERGY CONSERVATION
22,302.78
83,161.50
437,173.87
234,469.70
- 46.37%
TOTAL OPERATION EXPENSES
842,340.12
628,919.09
4,943,799.84
4,775,785.43
-3.40%
MAINTENANCE EXPENSES:
MAINT OF TRANSMISSION PLANT
MAINT OF STRUCT AND EQUIPMT
MAINT OF LINES - OH
MAINT OF LINES - UG
MAINT OF LINE TRANSFORMERS
MAINT OF ST LT & SIG SYSTEM
MAINT OF GARAGE AND STOCKROOM
MAINT OF METERS
MAINT OF GEN PLANT
TOTAL MAINTENANCE EXPENSES
DEPRECIATION EXPENSE
PURCHASED POWER FUEL EXPENSE
VOLUNTARY PAYMENTS TO TOWNS
TOTAL OPERATING EXPENSES
227.00
227.10
1,362.50
1,362.50
0.00%
10,836.54
13,825.02
65,231.98
91,852.94
40.81%
135,935.15
153,912.28
764,349.42
799,319.22
4.58%
19,639.61
13,433.93
78,872.00
90,673.27
14.96%
14,483.32
421.52
33,987.15
85,797.53
0.00%
(5.67)
(17.77)
(250.07)
(404.41)
61.72%
43,061.80
40,654.54
238,782.38
242,616.46
1.61%
1,106.94
263.66
18,897.55
10,420.67
- 44.86%
8,531.23
9,197.09
51,572.99
70,797.61
37.28%
233,815.92
231,917.37
1,252,805.90
1,392,435.79
11.15%
305,469.18
314,969.55
1,832,815.08
1,889,817.30
3.11%
2,868,712.69
3,666,453.24
18,015,541.22
15,799,467.37
- 12.30%
107,383.00
115,183.65
677,383.00
698,517.00
3.12%
6,625,777.81 7,251,053.12 41,165,543.84 39,356,446.20
(12)
-4.39%
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
BUDGETED OPERATING EXPENSE VARIANCE REPORT
12/31/13
SCHEDULE G
MAINTENANCE EXPENSES:
MAINT OF TRANSMISSION PLANT
ACTUAL
BUDGET
(137.50)
%
OPERATION EXPENSES:
YEAR TO DATE
YEAR TO DATE
VARIANCE *
CHANGE
PURCHASED POWER BASE EXPENSE
14,800,423.31
14,726,716.00
73,707.31
0.50%
MAINT OF LINES - UG
90,673.27
OPERATION SUP AND ENGINEERING EXP
257,164.91
233,042.00
24,122.91
10.35%
STATION SUP LABOR AND MISC
54,298.17
44,318.00
9,980.17
22.52%
LINE MISC LABOR AND EXPENSE
381,212.33
376,018.00
5,194.33
1.38%
STATION LABOR AND EXPENSE
249,717.13
219,908.00
29,809.13
13.56%
STREET LIGHTING EXPENSE
36,602.86
45,592.00
(8,989.14)
- 19.72%
METER EXPENSE
103,874.05
98,909.00
4,965.05
5.02%
MISC DISTRIBUTION EXPENSE
174,751.63
197,228.00
(22,476.37)
- 11.40%
METER READING LABOR & EXPENSE
15,236.98
23,014.00
(7,777.02)
- 33.79%
ACCT & COLL LABOR & EXPENSE
760,121.83
777,657.00
(17,535.17)
-2.25%
UNCOLLECTIBLE ACCOUNTS
63,000.00
63,000.00
0.00
0.00%
ENERGY AUDIT EXPENSE
216,549.81
208,491.00
8,058.81
3.87%
ADMIN & GEN SALARIES
430,365.11
395,392.00
34,973.11
8.85%
OFFICE SUPPLIES & EXPENSE
137,227.11
134,100.00
3,127.11
2.33%
OUTSIDE SERVICES
208,516.70
228,904.00
(20,387.30)
-8.91%
PROPERTY INSURANCE
179,555.99
230,250.00
(50,694.01)
- 22.02%
INJURIES AND DAMAGES
19,803.15
29,348.00
(9,544.85)
- 32.52%
EMPLOYEES PENSIONS & BENEFITS
1,059,076.00
996,148.00
62,928.00
6.32%
MISC GENERAL EXPENSE
98,406.29
128,226.00
(29,819.71)
- 23.26%
RENT EXPENSE
95,835.68
106,002.00
(10,166.32)
-9.59%
ENERGY CONSERVATION
234,469.70
318,372.00
(83,902.30)
- 26.35%
TOTAL OPERATION EXPENSES
4,775,785.43
4,853,919.00
(78,133.57)
-1.61%
MAINTENANCE EXPENSES:
MAINT OF TRANSMISSION PLANT
1,362.50
1,500.00
(137.50)
-9.17%
MAINT OF STRUCT AND EQUIPMENT
91,852.94
52,555.00
39,297.94
74.77%
MAINT OF LINES - OH
799,319.22
798,988.00
331.22
0.04%
MAINT OF LINES - UG
90,673.27
242,740.00
(152,066.73)
- 62.65%
MAINT OF LINE TRANSFORMERS
85,797.53
80,402.00
5,395.53
6.71%
MAINT OF ST LT & SIG SYSTEM
(404.41)
5,266.00
(5,670.41)
- 107.68%
MAINT OF GARAGE AND STOCKROOM
242,616.46
321,669.00
(79,052.54)
- 24.58%
MAINT OF METERS
10,420.67
29,832.00
(19,411.33)
- 65.07%
MAINT OF GEN PLANT
70,797.61
72,402.00
(1,604.39)
-2.22%
TOTAL MAINTENANCE EXPENSES
1,392,435.79
1,605,354.00
(212,918.21)
- 13.26%
DEPRECIATION EXPENSE
1,889,817.30
1,887,600.00
2,217.30
0.12%
PURCHASED POWER FUEL EXPENSE
15,799,467.37
15,685,546.00
113,921.37
0.73%
VOLUNTARY PAYMENTS TO TOWNS
698,517.00
699,996.00
(1,479.00)
-0.21%
TOTAL OPERATING EXPENSES
39,356,446.20
39,459,131.00
(102,684.80)
-0.26%
* ( ) . ACTUAL UNDER BUDGET
(12A)
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
BUDGETED OPERATING EXPENSE VARIANCE REPORT
12/31/13
MAINTENANCE EXPENSES:
MAINT OF TRANSMISSION PLANT
RESPONSIBLE
3,000.00
1,362.50
REMAINING
54.58%
MAINT OF STRUCT AND EQUIPMT
SENIOR
2014
ACTUAL
BUDGET
REMAINING
OPERATION EXPENSES:
MANAGER
ANNUAL BUDGET
YEAR TO DATE
BALANCE
BUDGET %
PURCHASED POWER BASE EXPENSE
JP
29,123,336.00
14,800,423.31
14,322,912.69
49.18%
MAINT OF LINE TRANSFORMERS
KS
OPERATION SUP AND ENGINEERING EXP
KS
467,978.00
257,164.91
210,813.09
45.05%
STATION SUP LABOR AND MISC
KS
90,088.00
54,298.17
35,789.83
39.73%
LINE MISC LABOR AND EXPENSE
KS
729,521.00
381,212.33
348,308.67
47.74%
STATION LABOR AND EXPENSE
KS
446,308.00
249,717.13
196,590.87
44.05%
STREET LIGHTING EXPENSE
KS
90,729.00
36,602.86
54,126.14
59.66%
METER EXPENSE
KS
218,064.00
103,874.05
114,189.95
52.37%
MISC DISTRIBUTION EXPENSE
KS
396,379.00
174,751.63
221,627.37
55.91%
METER READING LABOR & EXPENSE
KS
46,322.00
15,236.98
31,085.02
67.11%
ACCT & COLL LABOR & EXPENSE
RF
1,570,864.00
760,121.83
810,742.17
51.61%
UNCOLLECTIBLE ACCOUNTS
RF
126,000.00
63,000.00
63,000.00
50.00%
ENERGY AUDIT EXPENSE
JP
416,982.00
216,549.81
200,432.19
48.07%
ADMIN & GEN SALARIES
CO
794,002.00
430,365.11
363,636.89
45.80%
OFFICE SUPPLIES & EXPENSE
CO
268,000.00
137,227.11
130,772.89
48.80%
OUTSIDE SERVICES
CO
419,150.00
208,516.70
210,633.30
50.25%
PROPERTY INSURANCE
KS
460,600.00
179,555.99
281,044.01
61.02%
INJURIES AND DAMAGES
KS
58,206.00
19,803.15
38,402.85
65.98%
EMPLOYEES PENSIONS & BENEFITS
KS
1,870,479.00
1,059,076.00
811,403.00
43.38%
MISC GENERAL EXPENSE
CO
219,695.00
98,406.29
121,288.71
55.21%
RENT EXPENSE
KS
212,000.00
95,835.68
116,164.32
54.79%
ENERGY CONSERVATION
JP
636,761.00
234,469.70
402,291.30
63.18%
TOTAL OPERATION EXPENSES
9,538,128.00
4,775,785.43
4,762,342.57
49.93%
MAINTENANCE EXPENSES:
MAINT OF TRANSMISSION PLANT
KS
3,000.00
1,362.50
1,637.50
54.58%
MAINT OF STRUCT AND EQUIPMT
KS
105,738.00
91,852.94
13,885.06
13.13%
MAINT OF LINES - OH
KS
1,604,829.00
799,319.22
805,509.78
50.19%
MAINT OF LINES - UG
KS
485,432.00
90,673.27
394,758.73
81.32%
MAINT OF LINE TRANSFORMERS
KS
160,000.00
85,797.53
74,202.47
46.38%
MAINT OF ST LT & SIG SYSTEM
KS
10,487.00
(404.41)
10,891.41
103.86%
MAINT OF GARAGE AND STOCKROOM
KS
668,507.00
242,616.46
425,890.54
63.71%
MAINT OF METERS
KS
41,160.00
10,420.67
30,739.33
74.68%
MAINT OF GEN PLANT
RF
145,480.00
70,797.61
74,682.39
51.34%
TOTAL MAINTENANCE EXPENSES
3,224,633.00
1,392,435.79
1,832,197.21
56.82%
DEPRECIATION EXPENSE
RF
3,775,200.00
1,889,817.30
1,885,382.70
49.94%
PURCHASED POWER FUEL EXPENSE
JP
31,789,470.00
15,799,467.37
15,990,002.63
50.30%
VOLUNTARY PAYMENTS TO TOWNS
RF
1,400,000.00
698,517.00
701,483.00
50.11%
TOTAL OPERATING EXPENSES
78,850,767.00 39,356,446.20 39,494,320.80
(i2B)
50.09%
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
PROFESSIONAL SERVICES
12/31/2013
PROFESSIONAL SERVICES BY PROJECT
PROFESSIONAL SERVICES BY VENDOR
ACTUAL
MELANSON HEATH & COMPANY
ITEM
DEPARTMENT
ACTUAL
BUDGET
VARIANCE
1
RMLD AND PENSION TRUST AUDIT FEES
ACCOUNTING
32,500.00
32,250.00
250.00
2
PENSION ACTUARIAL EVALUATION
ACCOUNTING
0.00
0.00
0.00
3
LEGAL- FERC /ISO ISSIIES
ENERGY SERVICE
0.00
91000.00
(91000.00)
4
LEGAL- POWER SUPPLY ISSUES
ENERGY SERVICE
45,397.74
22,500.00
22,897.74
5
PROFESSIONAL SERVICES
ENERGY SERVICE
6,445.00
12,000.00
(5,555.00)
6
NERC COMPLIANCE AND AUDIT
E & 0
8,364.50
7,000.00
1,364.50
7
LEGAL
ENGINEERING
0.00
7,500.00
(7,500.00)
8
LEGAL - GENERAL
GM
71,299.56
75,000.00
(3,700.44)
9
LEGAL SERVICES- OTHER
HR
4,126.43
21,000.00
(16,873.57)
10
LEGAL SERVICES - NEGOTIATIONS
HR
15,947.26
0.00
15,947.26
11
LEGAL SERVICES - ARBITRATION
HR
4,629.73
21,900.00
(17,270.27)
12
LEGAL GENERAL
BLDG. MAINT.
0.00
750.00
(750.00)
13
SURVEY RIGHT OF WAY
BLDG. MAINT.
0.00
2,502.00
(2,502.00)
14
ENVIRONMENTAL
BLDG. MAINT.
0.00
2,502.00
(2,502.00)
15
INSURANCE CONSULTANT
GEN. BENEFIT
0.00
4,998.00
(4,998.00)
16
LEGAL
GEN. BENEFIT
64.60
2,502.00
(2,437.40)
17
LEGAL MATS MGMT
GEN. BENEFIT
950.00
7,500.00
(6,550.00)
18
DSA BASIC CLIENT SERVICE
ENGINEERING
1,249.98
0.00
1,249.98
19
ORGANIZATIONAL STUDY
GM
17,541.90
0.00
17,541.90
TOTAL
208,516.70
228,904.00
(20,387.30)
PROFESSIONAL SERVICES BY VENDOR
ACTUAL
MELANSON HEATH & COMPANY
32,500.00
UTILITY SERVICES, INC.
7,012.50
DUNCAN AND ALLEN
16,918.81
RUBIN AND RUDMAN
108,523.97
DOBLE ENGINEERING
1,249.98
CHOATE HALL & STEWART
24,703.42
WILLIAM CROWLEY
2,080.00
ENERGY NEW ENGLAND
1,400.00
BERRYDUNN
6,445.00
PLM
2,426.00
HUDSON RIVER ENERGY GROUP
2,249.72
COTTE MANAGEMENT CONSULTING LLC
3,007.30
TOTAL
208,516.70
(13)
RMLD
DEFERRED FUEL CASH RESERVE ANALYSIS
12/31/13
(14)
GROSS
MONTHLY
TOTAL
DATE
CHARGES
REVENUES
NYPA CREDIT
DEFERRED
DEFERRED
Jun -13
2,609,487.38
Jul -13
3,464,349.32
2,953,072.91
(53,841.00)
(565,117.41)
2,044,369.97
Aug -13
2,767,250.13
3,385,440.39
(33,645.12)
584,545.14
2,628,915.11
Sep -13
2,168,234.24
3,096,134.62
(61,811.13)
866,089.25
3,495,004.36
Oct -13
1,994,534.42
2,147,543.67
(23,964.99)
129,044.26
3,624,048.62
Nov -13
1,738,646.02
2,201,768.18
(53,708.49)
409,413.67
4,033,462.29
Dec -13
3,666,453.24
2,053,822.16
(45,701.57)
(1,658,332.65)
2,375,129.64
(14)
RMLD
BUDGET VARIANCE REPORT
FOR PERIOD ENDING DECEMBER 31, 2013
DIVISION
ENGINEERING AND OPERATIONS
ENERGY SERVICES
GENERAL MANAGER
FACILITY MANAGER
BUSINESS DIVISION
SUB —TOTAL
PURCHASED POWER — BASE
PURCHASED POWER — FUEL
ACTUAL
2,301,506
500,994
430,454
1,866,131
4,810,768
10ZoZ�%
2,370,490
570,365
455,488
1,974,763
4,828,061
VARIANCE CHANGE
(68,984)
—2.91%
(69,371)
— 12.16%
(25,034)
—5.50%
(108,632)
—5.50%
(17,293)
—0.36%
9,909,854 10,199,168 (289,315) —2.84%
14,800,423 14,726,716 73,707
15,799,467 15,685,546 113,921
TOTAL 40,509,744 40,611,430 (101,686)
(15)
0.50%
0.73%
—0.25%
RMLD
STAFFING REPORT
FOR FISCAL YEAR ENDING JUNE, 2014
(16)
14 BUD
JUL
AUG
SEP
OCT
NOV
DEC
TOTAL
13
13
13
13
13
13
GENERAL MANAGER
GENERAL MANAGER
2.00
2.00
2.00
2.00
2.00
2.00
2.00
HUMAN RESOURCES
1.00
1.00
1.00
1.00
1.00
1.00
1.00
COMMUNITY RELATIONS
1.00
1.00
1.00
1.00
1.00
1.00
1.00
TOTAL
4.00
4.00
4.00
4.00
4.00
4.00
4.00
BUSINESS
ACCOUNTING
2.00
2.00
2.00
2.00
2.00
2.00
2.00
CUSTOMER SERVICE
7.75
7.75
7.75
7.75
7.75
7.75
7.75
MGMT INFORMATION SYS
6.00
6.00
6.00
6.00
6.00
6.00
6.00
MISCELLANEOUS
1.00
1.00
1.00
1.00
1.00
1.00
1.00
TOTAL
16.75
16.75
16.75
16.75
16.75
16.75
16.75
ENGINEERING & OPERATIONS
AGM E &O
2.00
2.00
2.00
2.00
2.00
2.00
2.00
ENGINEERING
5.00
5.00
5.00
5.00
5.00
5.00
5.00
LINE
22.00
21.00
21.00
21.00
21.00
21.00
21.00
METER
3.00
3.00
3.00
3.00
3.00
3.00
3.00
STATION
8.00
8.00
8.00
8.00
8.00
8.00
8.00_
TOTAL
40.00
39.00
39.00
39.00
39.00
39.00
39
PROJECT
BUILDING
2.00
2.00
2.00
2.00
2.00
2.00
2.00
GENERAL BENEFITS
2.00
2.00
2.00
2.00
2.00
2.00
2.00
TRANSPORTATION
-
-
-
-
-
-
-
MATERIALS MGMT
4.00
4.00
4.00
4.00
4.00
4.00
4.00
TOTAL
8.00
8.00
8.00
8.00
8.00
8.00
8.00
ENERGY SERVICES
ENERGY SERVICES
4.50
3.50
3.50
3.50
3.50
3.50
3.50
TOTAL
4.50
3.50
3.50
3.50
3.50
3.50
3.50
RMLD TOTAL
73.25
71.25
71.25
71.25
71.25
71.25
71.25
CONTRACTORS
UG LINE
2.00
2.00
2.00
2.00
2.00
2.00
2.00
TOTAL
2.00
2.00
2.00
2.00
2.00
2.00
2.00
GRAND TOTAL
75.25
73.25
73.25
73.25
73.25
73.25
73.25
(16)
RMLD CO)
January 22, 2014
Reading Municipal Light Department
RELIABLE POWER FOR GENERATION$
230 Ash Shed
P.O. Box 150
Reading, MAO 1 967-0250
Tel: (781) 944 -1340
Fax: (781) 942 -2409
Web: wwwmnklcom
Town of Reading Municipal Light Board
Subject: Single Phase Pad Mounted FR3 Transformers
On December 11, 2013 a bid invitation was placed as a legal notice in the Reading Chronicle
requesting proposals for Single Phase Pad Mounted FR3 Transformers for the Reading
Municipal Light Department.
An invitation to bid was emailed to the following:
Power Sales Group
EDI
Hughes Supply
IF Gray
Hasgo Power
HD Supply
WESCO
Yale Electric Supply
Ward Transformer Sales
Metro West Electric Sales, Inc,
Robinson Sales
HD Industrial Services
Graybar Electric Company
Shamrock Power Sales
Jordan Transformer
Power Tech -UPSC
Stuart C. Irby
Bids were received from WESCO, Graybar Electric Company, Power Sales Group, HD Supply and
Stuart C. Irby.
The bids were publicly opened and read aloud at 11:00 a.m. January 8, 2014 in the Town of
Reading Municipal Light Department's Board Room, 230 Ash Street, Reading, Massachusetts.
The bids were reviewed, analyzed and evaluated by the General Manager and the staff.
Move that bid 2014 -12 for Single Phase Pad Mounted FR3 Transformers be awarded to:
WESCO for a total cost of $149,855.00
Item (desc.) QSY Manufacturer
1(25 kVa) 10 ERMCO
2 (37 Y2 kVa) 35 ERMCO
3 (50 kVa) 25 ERMCO
Unit
Total Net Cost
$1,894.00
$18,940.00
$2,089.00
$73,115.00
$2,312.00
$57,800.00
as the lowest qualified bidder on the recommendation of the General Manager.
ATTACHMENT 3
File: Bid /FY 14/TR2014 -12
RMLD Co.)
Reading Municipal Light Department
RELIASLS POWER FOR GENERATIONS
230 Ash Street. P.O. Box 150
Reading, MA 01867 -0250
The FY14 Capital Budget allocation for the purchase of these units under the Transformer
project was estimated at $48,000 for 30 units. This quantity was intended to bring the RMLD
inventory back up to the necessary level. The increase in the quantity of units is a direct result
of the single phase pad -mount transformer inspection program that took place in the Fall of
2013. A majority of the materials and labor associated with the installation of these units will be
captured witpin Project #6 of the Capital Budget.
Coleen 0'B
Peter Price
File: Bid /FY14/ IR 2014 -12
m
a
x
m
c
H
a
x
a
N
7
0
N
O
N
N
N y
a
a n
a n
o
T 0
N
N
L G
O
O
c
c
Q N
N
_N
N
N
O -
c
as
c a
n
n
o
c
o
o
m
OT
ON
T N
T N
U CY
k ;a
Z
Z
W 2)
>.
>.
c
c
i O
O
O
0
T
T 0
N m
U
T
N L
U U ca
N
a�
N
m
c
c
O
0
N
T
N ci
7
a
O
T
Q
n
n
v
d
w
m
e
v
0 d
lO
;=
rn
c
N
O
C
N
O
N
N
C
CT
U
C
N Q
(C
N
C
N Q
tC
N
0
>U1
•V N
W
Z
W
Z
o
0 0 0
0
0000
0 0 0
0
O O O
O
O O O
O
0 0 0
0
O
Z
r O�
a
07
N(D
N (D N
Qf O
O
O Lq
O
V O N
h
O U
0c 0 (t` O O h
a
V D) Cl)
N M r
(D
aD
M ((
N m n
N
O>
44 (A fA
-
Ul to 0)
CO3, 60 61)
Lo Lo
to
N
Lo Lo
T
C'1
r M N
M
Cl) N
n
n
ro
O O O
O O O
O O O
N
O
N
O
0
U
T OD
c000
a V
v(n rn
V (n 0
NI: (D o
_.
c
o
U
U
000
000
000
06
N N N
N N N
Y Y Y
N ?. F-
N N N
N N N
d d d
uJ
3 3 3
3 3 3
3 3 3
m
j
O O O
W M M
O O _O
C V
N
O OD CO
(D 6 (D
OD (D OD
:3 2 ..
0
(�
C co
E
LE
_0 -a
a
-2 '2 -a
0) U
�,6 E
p
d
OOO
72
+%
v
2 2 2
3 3 3
L 3 3 3
0- N
E o
a
m
N c
3
W W W
2 2 2
Q T_=
E
to N~ U
G
Q v "O W 'c
a
a
�mC`Sa
a
a
>
o >
(A
Y
-11
( 7 Y
(a n
> N>
U)> N>
U) T>
i y
i
Y � Y
(D Y Y
N Y Y
Q_
IL
(nr-o
'aa(nr-O
(o(n O
H C
o
O ���
(A �(o v
to �M v
CL
(V
y
L) r N co
y N co
y N M
ac m O
>,
G O
v
W E E E
3EEE
3EEE
oa
U) Q)
m
�== =
a. ===
0. == 1
207x_
m
a
x
m
c
H
a
x
a
N
7
0
N
RMLD CO)
January 22, 2014
Reading Municipal Light Department
RRLIARLR FOSFRR FOR GINRRATIONS
230 Ash Street
P.O. Box 150
Reading, MA 0 1867-0250
Tel: (781) 9441340
Fax: (781) 942-2409
Web: www.nslld.com
Town of Reading Municipal Light Board
Subject: Single Phase Pole Mounted Transformers
On December 11, 2013 a bid invitation was placed as a legal notice in the Reading
Chronicle requesting proposals for Single Phase Pole Mounted Transformers for the
Reading Municipal Light Department.
An invitation to bid was emailed to the following:
Power Sales Group
EDI
Hughes Supply
IF Gray
Hasgo Power
HD Supply
WESCO
Yale Electric Supply
Ward Transformer Sales
Metro West Electric Sales, Inc.
Robinson Sales
HD Industrial Services
Graybar Electric Company
Shamrock Power Sales
Jordan Transformer
Power Tech -UPSC
Stuart C. Irby
Bids were received from WESCO, Graybar Electric Company, Power Sales Group, Sutart
C. Irby and HD Supply.
The bids were publicly opened and read aloud at 11:00 a.m. January 8, 2014 in the
Town of Reading Municipal Light Department's Board Room, 230 Ash Street, Reading,
Massachusetts.
The bids were reviewed, analyzed and evaluated by the General Manager and the staff.
Move that bid 2014 -13 for Single Phase Pole Mounted Transformers be awarded to:
WESCO for a total cost of $99,792.00
Item (desc.)
QV Manufacturer
Unit Cost
Total Net Cost
1(37 Y2 kVa)
30 Cooper
$1,244.00
$37,320.00
2 (50 kVa)
40 Cooper
$1,424.00
$56,960.00
3 (100 kVa)
2 ERMCO
$2,756.00
$5,512.00
as the lowest qualified bidder on the recommendation of the General Manager.
File: Bid /FY14 /TR 2014 -13
RMLD (OD Reading Municipal Light Department
RELIABLE POWER FOR GENERATIONS
230 Ash Street, P.O. Box 150
Reading, MAO 1867-0250
The FY14 Capital Budget allocation for the purchase of these units under the Transformer
project was estimated at $96,000 for 60 units. This quantity was intended to bring the
RMLD inventory back up to the necessary level. The Department will actually need 72 units
to bring the inventory up to the necessary level.
Cole n O'Brien
Peter Price
File: Bid /FY14 /TR 2014 -13
T
m
0
N U
O
U
5 o(S
N
7
C
E F
0
d
c o
U
O LU
ymC7a`
m
a
a
a
H a U
A �
2C7xin
R
a
x
T
C
Q
0
CL
2
IL
v
0
N
a
N
N
N
N
Q y
O
�'
oa
0
0
0
�
U
�9
lLl N �
a O G
N
N
N
T
T
U U m
E p
N
N
N
Q
ii a
o
_ Q)
V .t:
N
7
N
O
C
.0
a1
�a Q
0000
0 0 0 0
O O O O
0 0 0 0
O O O O
0 0 0 0
a1
Z
OONN
N (D — m
00 aD 00
W co
O O(O(D
00 O V O
0
q 0Q r t%
r co ao o?
O v_ Drn (n
� (D LO M
N r to (D
co Il (O rl
���6q
�U
���to
�l�r
N
N
N
Cl) I
C7 I
Cl) I
coo
O O O
N
O O O
av(a
(D(om
(D Sri
U
v
Nn
°im °v
v
v 0(D0v
jvi40�
E»inC')
ifli»
000
OOOM
00
aaa
aaQ
aaa
(D N to
Cl) (A y
y y N
W m d
0 Q m
a) al a)
a> a) 3
CD N O
al al 0
o ao°
y
Q
_ro
o) c) cu
_00_r
ao co b
co (D ao
w
N
C
t to
p Q O O
O O O
F�
O 02
x
0 0 0
U U W
0000 _ _ _
_ _ _
c
C
CC
Q
d
0
0
Y
Y
Y m>
m>
ro>
Yo
_
Yo
? - S a
ayi�
a
r 0 0
N
V O°
Cf O
O Ste=
M O
(A
N
N
U— N CM
N r N C7
y— N M
C
13
Cl)
N
fA 0p
L
m
W 0 0 d
� - --
o N N N
,=22
O N
N
0. — =—
T
m
0
N U
O
U
5 o(S
N
7
C
E F
0
d
c o
U
O LU
ymC7a`
m
a
a
a
H a U
A �
2C7xin
R
a
x
T
C
Q
0
CL
2
IL
v
0
N
RMLD CO)
January 14, 2014
Reading Municipal Light Department
RILIABL■ FOVIR FOR GINIRATIONS
230 Ash Street
P.O. BOX 150
Reading, MAO 1867-0250
Tel: (781) 944 -1340
Fu: (781) 942 -2409
Web: www.rmidcom
Town of Reading Municipal Light Board
Subject: Three Phase Pad Mounted Transformers
On December 11, 2013 a bid invitation was placed as a legal notice in the Reading
Chronicle requesting proposals for Three Phase Pad Mounted Transformers for the Reading
Municipal Light Department.
An invitation to bid was emailed to the following:
Power Sales Group WESCO
EDI Yale Electric Supply
Hughes Supply Ward Transformer Sales
IF Gray Metro West Electric Sales, Inc.
Hasgo Power Robinson Sales
HD Supply HD Industrial Services
Graybar Electric Company
Shamrock Power Sales
Jordan Transformer
Power Tech -UPSC
Stuart C. Irby
Bids were received from Graybar Electric Company, WESCO, Stuart C Irby, HD Supply and
Power Sales Group.
The bids were publicly opened and read aloud at 11:00 a.m. January 8, 2014 in the Town
of Reading Municipal Light Department's Board Room, 230 Ash Street, Reading,
Massachusetts.
The bids were reviewed, analyzed and evaluated by the General Manager and the staff.
Move that bid 2014 -14 for Three Phase Pad Mounted Transformers be awarded to:
WESCO for a total cost of $143,869.00
Item (desc.)
Qly
Manufacturer
Unit Cost
Total Net Cost
1(225 kVa Delta w /taps 120/208)
3
ERMCO
7,098.00
21,294.00
2 (225 kVa Delta w /taps 277/480)
2
ERMCO
6,890.00
13,780.00
3 (300 kVa Delta w /taps 120/208)
2
ERMCO
7,783.00
15,566.00
4 (300 kVa Delta w /taps 277/480)
1
ERMCO
7,365.00
7,365.00
5 (500 kVa Delta w /taps 120/208)
1
ERMCO
9,360.00
9,360.00
6 (500 kVa Delta w /taps 277/480)
4
ERMCO
8,764.00
35,056.00
7 (750 kVa Delta w /taps 277/480)
2
ERMCO
11,780.00
23,560.00
8 (1500 kVa Delta w /taps 277/480)
1
ERMCO
17,888.00
17,888.00
as the lowest qualified bidder on the recommendation of the General Manager.
File: Bid /FY14/ rR 2014 -14
RMLDReading Municipal Light Department
CO)RELIABLI POWER FOR GENERATIONS
3
230 Ash Sweet, P.O. Box 150
Reading, MA 01867 -0250
The FY14 Capital Budget allocation for the purchase of these units under the Transformer
project was estimated at $60,000 for 5 units. This quantity was intended to bring the RMLD
inventory back up to the necessary level. Since the time that the budget was first proposed
in April of 2013, a number of projects requiring 3 phase pad -mount transformers have
begun or are proposed. This required the increase in the number of units to 16. A sampling
of these projects is as follows;
Wilmington High School, was on hold because a home owners appeal to the DEP
North Reading High School, the original plan called for two pad -mount transformers, now
the plan calls for three transformers
Target Corporation, 210 Ballardvale Street, W - this project started in November of 2013
Retail mini -mall, 210 Ballardvale Street, W - proposed retail space with anchor restaurant
United Tool and Die, 98 Eames Street, W - new project in November of 2013, service
upgrade
Kirkwood Printing, 904 Main Street, W - building addition with possible service upgrade
Self -Storage building, 114 West Street - new service, started site work Summer 2013
Ards Senior Living Center (old Eric's Greenhouse), 1090 Main Street, R - new service,
project demo staring next month
100 Research Drive, W - proposed 2 story office building with 1 or 2 service entrances
600 Research Drive, W - proposed new service
58 Jonspin Road, W - proposed service upgrade
30 Upton Drive, W - proposed new service
Perfectos, 285 Main Street, R - proposed new service
235 Andover Street, W - new service, completed
Peter Price
File: Bid /FY14 /TR 2014 -14
d
N
r
a
e
a
a
N
07
a�
O N
m
�m
a
a� m
� N
c
Q w
o
c
m
oa E o
U �
X
W y i
a O G N
UUc'o
E0
d
E cl i.
a
U
U � N
� T
vnj O
o
m
Q 7
z N
a m
`m
Z O
f0-
c71
y
U
c
m
O
a�
U
:a
G
m
0 0 0 0 0 0 0 00
0 0 0 0 0 0 0 0 0
vowwowcom
owwwwwwww
N P N M M O N O O0
f` C7f M M n M
N M N
00000000
0 0 0 0 0 0 0 0
w O M o O R 0 a0
mowwwwww
OaDr MMnrnw
rwrnr:ofw7r`
00000000
aaaaaaaa
Y Y Y Y Y Y Y Y
3 3 3 3 3 3 3 3
0 0 0 0 0 0 0 0
w w O0 w a0 w m O
00000000
U U U U U U U U
22222222
2 Q 2 2 m 2 m m
W W W W W W W W
cooaooc000aD
oaDOaooaoaoa
N� N
11 O r o n o rr n In
n - N - N rr N
N N N N yr
CL a a a a a a m
0 3 3 3 3 3 3 3
�00000co°
Y Y Y Y Y Y Y O
O N 0 0
N 0 0 s 0 0 N O O O O M
'O EEEEEEEE
0000000010
000000000
N Na? V (O O MO V 00
M (C 0 O Ili .
N ;! �: O r V N N I O
M N N— r V N r
00000000
O O O O O O O p
V m N rf1 N W N �j
N ^ N V
O O C7 q cl!
(+7 a0 N M
r n aD W r O N p
r r r N
00000000
m m Q Q m m Q Q
QaQQQaQQ
w N w w N N y y
Y Y Y Y Y Y
N N N N a) al N w
3 3 3 3 3 3 3 3
W W 00 CQ OD CO O O
(D (D 6666OO OO
a�v-o-oav-o
Z = 2 2 x 2 2 2
m omomoOaD
O moaDOmaDv
N a r� o N O N V 7 n
o �or�r�n
N �! N r N N No
w ano.aC. o as
A m f0 10 MC m �a O 3
y 3 3 3 3 3 3 3 m
—
3 ardma�arddp
a0000000m
ca co ca 0 0 J i >1
Y Y Y Y Y Y Y p
if7 N 000000
r N m V 0 w n O
2222222E
0000000010
000000000
CO V N Ih or O '7 RI
V O (�7 N r O N 0 m
O NC7 N1nONO7
NN! O2 O2m (o a
N r V (7 O N faD `
N N N r r�T N r
00000000
O 0 0 0 0 0 0 0
M (D N n Cs C
O
O (0 N iL1 C C O N
n r, M7r(nv
r r . N
00000000
Q Q Q Q Q Q Q Q
w w w N w N Y Y
Y Y Y Y Y Y N N
d m m a) N w N m
3 3 3 3 3 3 3 3
O 0 0 0 O_ O N E
00 6 6 OD CD O O
07222v272 -o-2
1 0 0 0 0 0 0 0 0
2 2 2 2 2 2 2 2
Q
coowoa000aD
oaoomommv
N C N a N V 7 n
cm r- f-
N N N r N y
w w w w w w w w a
d o. aaaaaam
co co m co co co
mro-
3 mdma�a�a�do
a0000000m
i i
i
RMLD Reading Municipal Light Department
RILIAILI POVIa FOR GINIaATIONf
230 Ash Street
P.O. Box 150
Reading, MAO 1867-0250
Tel: (781) 944 -1340
Fax: (781) 942 -2409
Web: www.tmld.com
January 22, 2014
Town of Reading Municipal Light Board
Subject: Three Phase Pole Mounted Transformers
On December 11, 2013 a bid invitation was placed as a legal notice in the Reading
Chronicle requesting proposals for Three Phase Pole Mounted Transformers for the
Reading Municipal Light Department.
An invitation to bid was emailed to the following:
Power Sales Group WESCO Graybar Electric Company
EDI Yale Electric Supply Shamrock Power Sales
Hughes Supply Ward Transformer Sales Jordan Transformer
IF Gray Metro West Electric Sales, Inc. Power Tech -UPSC
Hasgo Power Robinson Sales Stuart C. Irby
HD Supply HD Industrial Services
Bids were received from WESCO and Power Sales Group.
The bids were publicly opened and read aloud at 11:00 am January 8, 2014 in the
Town of Reading Municipal Light Department's Board Room, 230 Ash Street, Reading,
Massachusetts.
The bids were reviewed, analyzed and evaluated by the General Manager and the staff.
Move that bid 2014 -15 for Three Phase Pole Mounted Transformers be awarded to:
WESCO for a total cost of $62,625.00
Item (desc.)
QJy
Manufacturer
Unit
Total Net Cost
1(45 kVa 13800 A 120/208)
1
Power Partners
$3,496.00
$3,496.00
2 (45 kVa 13800 0 277/480)
2
Power Partners
$3,356.00
$6,712.00
3 (75 kVa 13800 0120/208)
2
Power Partners
$4,079.00
$8,158.00
4 (75 kVa 13800 A 277/480)
1
Power Partners
$3,871.00
$3,871.00
5 (112 kVa 13800 A 120/208)
4
Power Partners
$5,217.00
$20,868.00
6 (112 kVa 13800 0 277/480)
2
Power Partners
$4,352.00
$8,704.00
7 (150 kVa 13800 A 120/208)
1
Power Partners
$5,912.00
$5,912.00
8 (150 kVa 13800 A 277/480)
1
Power Partners
$4,904.00
$4,904.00
as the lowest qualified bidder on the recommendation of the General Manager.
File: Bid /FY14 /TR 2013 -15
RMLD Reading Municipal Light Department
RELIABLE POWER FOR GENERATIONS
230 Ash Stmt, P.O. Box 150
Reading, MAO 1867-0250
The FY14 Capital Budget allocation for the purchase of these units under the
Transformer project was estimated at $80,000 for 8 units. This quantity was intended
to bring the RMLD inventory back up to the necessary level. The original estimate in the
Capital Budget was for 8 of the larger units. The Department will actually need 14 of
the smaller units to bring the inventory up to the necessary level.
Coleen O'Brien
Peter Price
File: Bid /FY14 /TR 2014 -15
L
H
C
R
d
a°
un
a^
� N
m
a
o �
N
C
� O
Q N
O
c a �
�a E
m )
0
W y
Nm
UUco
o
o a
Q w
E v
O
N
U
.r-
U)
N R
rnn O
o
� E
N U
N 4.
N
�4 N
2
O
61
O
U
"c
0
`7
U
c
L
d
m
a�
T a
N
a)
N
N
a o
CL
O
.'0
O
N O_
d a)
T �
O
a�
U) o
T U
N
"O N
N
ca N
m
Z
d) ;o
m -0
ro
n
W
N
i 3:
W
U
U
R
L
Z
ca
C
0)
N
d
a L
N
.0
T
—
� U
G
a
N
m
W
d U)
W
W
N
T
0000000010
0000000010
w N N n W -* N O N
v_n aomna�mm
m W W (O O W W e► N
d9 fA
in w N V7 w V!
r N N — �r N — —
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
a (•i o Cl an
0 0 0 0 0 0 0 0
aaaaaaaa
Y Y Y Y Y Y Y Y
3 3 3 3 3 3 3 3
(O (O (O (O N (O 10 (O
N N N N N N N N
t t t r t t t t
a a a a a a a a
0 0 0 0 0 0 0 0
aaaaaaaa
a0000
aoocoo0Go0ao
o n O n
N r N n C', N
N N R R R R
R R R R « « «
p d m d d pro O D G
NCOG O
O O O o 00 00 00 00
W O O C O M O M M
r r r r
R R R R > > > >
Y Y Y y Y Y Y Y
N N O O
v v n r
N ao V (O (O n a0
wa�i m a£i w m aEi
T T
°a: C
T T
T T
T T
T T
T T
0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0
(n O V 0 N a0 N 0 00
,C:03 w 0 7 0) n t00 O O
(fl fA �EA��d)fAto
r N N r V N r r
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
(n O N W ao O N
V co O N co co O)
v v ui (n n (ri of (o
F» E» <n u> v3 F» e» u>
00000000
ac¢cccc¢occcm
aaaaaaaa
Y Y Y Y Y Y Y Y
3 3 3 3 3 3 3 3
N N�! lc� N T N N
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
2 2 2 2 2 2 2 2
m o m o
mo mo o ao o m
ono n
C N n N r r N N
ro o o o 0 oo oo oo oo
ROOOOaommao
�%% m m m O� r � r
co r co co
3 ro ro ro R > > >>
10 Y Y Y Y Y Y Y Y
N N O O
v It n n r r
r N M V U] (O n aD
maEi aEi aEi aEi m m aEi
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0
'lot O O t0 O v � V (- aD
ao o co � o
m
n Co N c7 V u7 CD 7 O)
Vi fA fA fA � rlfl EA 69 �
r N N r-It N r r
0 0 0 0 0 0 0 0
0 O O O o (O
O r (O O
n (o o co r n 0
n ao
V9, E» (» v> 69 E» fa u>
00000000
cc cc cr ¢ ¢ cc cc oC
aaaaaaaa
Y Y Y Y Y Y Y Y
3 3 3 3 3 3 3 3
N N N N N N N N
N
p 'O "O U 2 2 U 2 2
EL 0 0 0 0 0 0 0 0 0
E 2 2 2 2 2 2 2 2
a
m000
ao o m o N o 0
N V N V ao ao
� N
ono n
j N_ � N r � N r N C\l 0 ro R ro ro ca co cz
-600 0
0000aoaoaom
W w w O w�2 M �2 r
d r m r r
3 ro ro R ro > > >>
0 Y Y Y Y Y Y Y Y
N N O O
LO(n 0 0 (n r r r r
v n n r r
r N M v O O n co
m
rn
m
a
X
N
T
b
c
a
2
H
m
O
IL
2
a
N
a
N
RMLD �V
r^%
3
January 22, 2014
Reading Municipal Light Department
llLIAlLI POWll FOR CINllAT10Nf
230 Ash Street
P.O. Box ISO
Reading, MAO 1867-0250
Tel: (781) 944 -1340
Fax: (791) 942-2409
Web: www.niald cons
Town of Reading Municipal Light Board
Subject: 15kV Aerial Spacer Cable
On December 11, 2013 a bid invitation was placed as a legal notice in the Reading Chronicle
requesting proposals for 15kV Aerial Spacer Cable for the Reading Municipal Light Department.
Specifications were emailed to the following:
Wesco
Okonite
General Cable
Pirelli Cables & Systems
Graybar
Power Sales Group
Yusen Assoc
Yale Electrical Supply
Power Tech
USA Power Cable
Shamrock Power
Arthur Hurley Company
HD Supply, Inc.
Hendrix Wire & Cable Corp
EL Flowers
Champion Wire and Cable
Anixter Wire & Cable
Hasgo Power
Eupen Cable
Power & Telephone Enterprise
Bids were received from Arthur Hurley Company, WESCO and Graybar Electric.
The bids were publicly opened and read aloud at 11:00 a.m. January 8, 2014 in the Town of
Reading Municipal Light Department's Board Room, 230 Ash Street, Reading, Massachusetts.
The bids were reviewed, analyzed and evaluated by the General Manager and the staff.
Move that bid 2014 -16 for 15kV Aerial Spacer Cable be awarded to:
Arthur Hurley for a total cost of $58,275.00
ttem Qty Description Total Lump Sum
1 22,500' 795 KCM Single conductor Spacer Cable $58,275.00
as the lowest qualified bidder on the recommendation of the General Manager.
The FY14 Capital budget allocation for the purchase of the 15kV Aerial Spacer Cable for
Project 1- 5W(9 Replacement was estimated at $59,458.
Co16eK0'Brien
Peter Price
File: Bid/ FY 14 Cable /2014 -16
y-
m
x
m
QW
ul
a
Ia
m
m
ca
a
m
7
7
E
O
V
c
m
m
m
a
O
:7
cU0
N
m
m
O
m
0
m
c
O
cti
m
m
2
O
m
O
U
m
O
V �
N .c
W v
Offi
m
m V
pc �
a W
Q � N
C
a W
z 0 c�3
c
g
Q
tO
u�
m�
�
m
m
o
c
O
g
cr
Q
c
)d
3
c
y
m
N
m
N
m
O
m
c
00
a
O
Q
_
m N
m
m
m
C
m
m
c
m
U
m
c
C
7
U
�
�
Ul) o
m
m
O
O
.r
c
$ E
m of
m
U
m
y
0
`
3
co
m U
=
to
L
U
y
c
v
m
cm m
T m?
m
`
E
m
a
>
O
m
m U=
0
li
Q
U
W
Q
QW
ul
a
Ia
m
m
ca
a
m
7
7
E
O
V
c
m
m
m
a
O
:7
cU0
N
m
m
O
m
0
m
c
O
cti
m
m
2
O
m
O
U
m
O
V �
N .c
W v
Offi
m
m V
pc �
a W
Q � N
C
a W
z 0 c�3
Town of Reading, Massachusetts
Municipal Light Department
Designation:
Residential A Rate
MDPU # 228 supersedes
and cancels MDPU # 211
Residential Schedule A Rate
Available in:
Reading, Lynnfield Center, North Reading, and Wilmington
Applicable to:
Individual residential customers for all domestic uses where service is taken through one
meter. Incidental commercial use, not exceeding 20% of the total energy used on the
same premises is permitted.
Character of service:
A.C. 60 cycles: single phase.
Customer Charge:
$3.78 per month
Energy Charge:
$.09118 per Kilowatt-hour for all Kilowatt-hours usage
Budget Billing:
The customers under this rate will have available to them a budget billing program under
which the customer is required to pay a levelized amount to the Department each billing
period during the calendar year. The specifics of this program are outlined in the
Department's General Terms and Conditions.
Farm Discount:
Customers who meet the eligibility requirements set forth by the Massachusetts
Department of Food and Agriculture for being engaged in the business of agriculture or
farming, and upon certification to the RMLD by the Massachusetts Department of Food
and Agriculture, will be eligible for an additional 10% discount, prior to the RMLD
prompt payment discount, on rates and charges applicable on their monthly billing
statement.
Energy Conservation Charge:
The bill for service hereunder may be increased or decreased as provided by the Energy
Conservation Charge.
Fuel Adjustment:
The bill for service hereunder may be increased or decreased as provided by the Standard
Fuel Adjustment Clause.
Rate Filed: January 30, 2014
Effective: On Billings on or After February 1, 2014
Filed By: Coleen M. O'Brien, General Manager
ATTACHMENT 4
Town of Reading, Massachusetts
Municipal Light Department
MDPU # 228 supersedes
and cancels MDPU # 211
Residential Schedule A Rate (cont'd)
Purchase Power Adjustment:
The bill for service hereunder may be increased or decreased as provided by the Purchase
Power Adjustment.
Meter Reading and Billing:
Bills under this schedule will be rendered monthly. A prompt payment discount of 10%
will be allowed on the current bill, excluding fuel adjustment charges and the New York
Power Authority credit or charge, only if the entire bill is paid -in -full by the discount due
date.
General Terms and Conditions:
Service hereunder is subject to the General Terms and Conditions which are incorporated
herein and are a part of this rate schedule.
Rate Filed: January 30, 2014
Effective: On Billings on or After February 1, 2014
Filed By: Coleen M. O'Brien, General Manager
Town of Reading, Massachusetts
Municipal Light Department
Designation:
Residential RW Rate
MDPU # 229 supersedes
and cancels MDPU # 212
Residential Schedule RW
Controlled Water Heater Rate
Available in:
Reading, Lynnfield Center, North Reading, and Wilmington
Applicable to:
Individual residential customers for all domestic uses where service is taken through one
meter. Incidental commercial use, not exceeding 20% of the total energy used on the
same premises is permitted.
Character of service:
A.C. 60 cycles: single phase.
Terms of Use:
When a customer regularly uses an electric water heater of a type approved by the
Department. Service to the water heater will be controlled by a Department owned time
switch in an approved outdoor socket. Internal wiring will be the responsibility of the
customer. Water heater with two elements shall be interlocked to prevent simultaneous
operation.
Customer Charge:
$3.79 per month.
Energy Charge:
$.08799 per Kilowatt-hour for the first 100 kWh
$.03992 per Kilowatt -hour for energy in excess of 100 kWh up to 433 kWh
$.08799 per Kilowatt -hour for energy in excess of 433 kWh
Budget Billing:
The customers under this rate will have available to them a budget billing program under
which the customer is required to pay a levelized amount to the Department each billing
period during the calendar year. The specifics of this program are outlined in the
Department's General Terms and Conditions.
Farm Discount:
Customers who meet the eligibility requirements set forth by the Massachusetts
Department of Food and Agriculture for being engaged in the business of agriculture or
farming, and upon certification to the RMLD by the Massachusetts Department of Food
and Agriculture, will be eligible for an additional 10% discount, prior to the RMLD
prompt payment discount, on rates and charges applicable on their monthly billing
statement.
Rate Filed: January 30, 2014
Effective: On Billings on or After February 1, 2014
Filed By: Coleen M. O'Brien, General Manager
Town of Reading, Massachusetts
Municipal Light Department
MDPU # 229 supersedes
and cancels MDPU # 212
Residential Schedule RW
Controlled Water Heater Rate (Contd.)
Energy Conservation Charge:
The bill for service hereunder may be increased or decreased as provided by the Energy
Conservation Charge.
Fuel Adjustment:
The bill for service hereunder may be increased or decreased as provided by the Standard
Fuel Adjustment Clause.
Purchase Power Adjustment:
The bill for service hereunder may be increased or decreased as provided by the Purchase
Power Adjustment.
Meter Reading and Billing:
Bills under this schedule will be rendered monthly. A prompt payment discount of 10%
will be allowed on the current bill, excluding fuel adjustment charges and the New York
Power Authority credit or charge, only if the entire bill is paid -in -full by the discount due
date.
General Terms and Conditions:
Service hereunder is subject to the General Terms and Conditions which are incorporated
herein and are a part of this rate schedule.
Rate Filed: January 30, 2014
Effective: On Billings on or After February 1, 2014
Filed By: Coleen M. O'Brien, General Manager
Town of Reading, Massachusetts
Municipal Light Department
MDPU # 230 supersedes
and cancels MDPU # 222
Residential Time -of -Use Schedule A2 Rate
Designation:
Residential Time -of -Use A2 Rate
Available in:
Reading, Lynnfield Center, North Reading, and Wilmington
Applicable to:
Individual residential customers for all domestic uses where service is taken through one
On -Peak and Off -Peak meter. Incidental commercial use, not exceeding 20% of the total
energy used on the same premises is permitted.
Character of service:
A.C. 60 cycles: single phase.
Customer Charge:
$6.01 per month.
Energy Charge:
$.14567 per Kilowatt -hour for all Kilowatt -hours usage during the On -Peak hours.
$.05015 per Kilowatt -hour for all Kilowatt -hours usage during the Off -peak hours.
Definition of Periods:
The On -Peak period is defined as the hours between 12:00 Noon and 7:00 P.M. Monday
through Friday except holidays as listed under the "Granted Holidays" paragraph listed
below. The Off -Peak period is defined as the hours between 7:00 P.M. and 12:00 Noon
Monday through Friday and all hours Saturday, Sunday and granted holidays as listed
below.
Controlled Water Heater Allowance:
When a customer regularly uses an electric water heater of a type approved by the
Department, 333 kWh will be credited to usage during the Off -Peak period and will be
billed at $.03815 kWh. All kWh used Off -Peak above 333 kWh will be charged at
the regular Off -Peak rate. If less than 333 kWh are used Off -Peak then only that amount
of kWh will be billed at $.03815 per kWh. Water heater with two elements shall be
interlocked to prevent simultaneous operation. Service to the water heater will be
controlled by a Department owned time switch in an approved outdoor socket.
Term:
A customer electing to be billed under this rate must remain on this rate for a minimum of
one year. At the end of one year on this rate customer may elect to remain on this rate or
be billed under the Residential A Rate.
Rate Filed: January 30, 2014
Effective: On Billings on or After February 1, 2014
Filed By: Coleen M. O'Brien, General Manager
Town of Reading, Massachusetts
Municipal Light Department
Budget Billing:
MDPU # 230 supersedes
and cancels MDPU # 222
Residential Time -of -Use Schedule A2 Rate (cont'd)
The customers under this rate will have available to them a budget billing program under
which the customer is required to pay a levelized amount to the Department each billing
period during the calendar year. The specifics of this program are outlined in the
Department's General Terms and Conditions.
Farm Discount:
Customers who meet the eligibility requirements set forth by the Massachusetts
Department of Food and Agriculture for being engaged in the business of agriculture or
farming, and upon certification to the RMLD by the Massachusetts Department of Food
and Agriculture, will be eligible for an additional ten percent discount, prior to the RMLD
prompt payment discount, on rates and charges applicable on their monthly billing
statement.
Energy Conservation Charge:
The bill for service hereunder may be increased or decreased as provided by the Energy
Conservation Charge.
Fuel Adjustment:
The bill for service hereunder may be increased or decreased as provided by the Standard
Fuel Adjustment Clause.
Purchase Power Adjustment:
The bill for service hereunder may be increased or decreased as provided by the Purchase
Power Adjustment.
Meter Reading and Billing:
Bills under this schedule will be rendered monthly. A prompt payment discount of 10%
will be allowed on the current bill, excluding fuel adjustment charges and the New York
Power Authority credit or charge, only if the entire bill is paid -in -full by the discount due
date.
Granted Holidays
Under the Residential Time -of -Use Schedule A2 Rate the holidays granted for Off -Peak
are: New Year's Day, President's Day, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day, Columbus Day, Veteran's Day and Christmas Day.
General Terms and Conditions:
Service hereunder is subject to the General Terms and Conditions which are incorporated
herein and are a part of this rate schedule.
Rate Filed: January 30, 2014
Effective: On Billings on or After February 1, 2014
Filed By: Coleen M. O'Brien, General Manager
Town of Reading, Massachusetts
Municipal Light Department
Commercial Schedule C Rate
Designation:
Commercial C Rate
Available in:
Reading, Lynnfield Center, North Reading, and Wilmington
Applicable to:
MDPU # 231 supersedes
and cancels MDPU # 223
Service under this rate is available to industrial or commercial customers who take all
their requirements under this rate. All electricity furnished under this rate will be metered
through one service unless it is convenient for the Department to do otherwise.
Notice:
All customers taking electric service under the Commercial Schedule C Rate and/or the
Industrial Time of Use Rate will be required to give the Department two (2) years prior
written notice of its intention to take its energy requirements from other supplier and/or
resource other than this Department while remaining on the Department's service
territory.
Character of service:
AC 60 cycles: single phase or three phase.
Customer Charge:
$6.51 per month.
Firm Demand Charge:
$6.81 per Kilowatt for all demand usage.
Energy Charge:
$.05657 per Kilowatt -hour for all Kilowatt -hours usage.
Budget Billing:
The customers under the C Rate may elect the Budget Billing program under which the
customer is required to pay the levelized amount to the Department each billing period
during the calendar year. This rate is not available to C Rate Customers electing the
Contract Demand Rate, or the Non Firm Demand Rate. The specifics of this program are
outlined in the Department's General Terms and Conditions.
Energy Conservation Charge:
The bill for service hereunder may be increased or decreased as provided by the Energy
Conservation Charge.
Rate Filed: January 30, 2014
Effective: On Billings on or After February 1, 2014
Filed By: Coleen M. O'Brien, General Manager
Town of Reading, Massachusetts
Municipal Light Department
MDPU # 231 supersedes
and cancels MDPU # 223
Commercial Schedule C Rate (cont'd)
Fuel Adjustment:
The bill for service hereunder may be increased or decreased as provided by the Standard
Fuel Adjustment Clause.
Purchase Power Adjustment:
The bill for service hereunder may be increased or decreased as provided by the Purchase
Power Adjustment.
Measurement of Billing Demand:
The billing demand shall be the highest of the fifteen minute kilowatt demand established
during the billing period, but not less than eighty percent of the maximum demand
established during the preceding summer or sixty percent of the maximum demand
established during the winter season.
Definitions of Seasons:
The summer season is defined as the months of June through September and the winter
season is defined as the months of October through May.
Farm Discount:
Customers who meet the eligibility requirements set forth by the Massachusetts
Department of Food and Agriculture for being engaged in the business of agriculture or
farming, and upon certification to the RMLD by the Massachusetts Department of Food
and Agriculture, will be eligible for an additional ten percent discount, prior to the
RMLD prompt payment discount, on rates and charges applicable on their monthly
billing statement.
Non -Firm Demand:
A Customer under this rate may designate any amount of load, in kilowatts, as Non -Firm.
Any amount so designated shall be capable of being removed from service during any
On -Peak hour as may be requested by the Department. A customer will be charged $4.38
per kW -month for each kilowatt of demand designated as Non -Firm demand. Failure to
remove load designated as Non -Firm load shall result in a charge of $14.46 per kW of
Non -Firm demand for that bill month.
The Department shall have the right to limit the requests for curtailment for Non -Firm
load. The Department, at its option, may request separate metering for Non -Firm loads.
The energy and fuel portion of this Non -Firm Demand rate will be billed at the normal
Commercial C rate levels.
A customer must contract to be on the Non -firm rate for a minimum of one year.
Rate Filed: January 30, 2014
Effective: On Billings on or After February 1, 2014
Filed By: Coleen M. O'Brien, General Manager
Town of Reading, Massachusetts
Municipal Light Department
MDPU # 231 supersedes
and cancels MDPU # 223
Commercial Schedule C Rate (cont'd)
Optional Contract Demand:
The customer may contract for a specific demand requirement on the Optional Contract
Demand rate. The customer shall select a demand level, which will cover its highest
annual peak. The cost of the Contract Demand rate is $8.03 per kilowatts. The customer
will be billed for that amount of kilowatts each month for the entire year. If in any month
the customer exceeds the contract demand amount then, the contract demand will be
billed at a rate of $14.46 per kilowatt. The contract demand level will be re- established at
the higher billing amount.
The energy and fuel portion of the Optional Contract Demand will be billed in the same
manner as the Industrial Time of Use rate and is described below:
$.09208 per kilowatt -hour for all kilowatt-hours used between 12:00 Noon and 7:00
P.M., Monday through Friday, excluding holidays.
$.02763 per kilowatt -hour for all kilowatt -hours used between 7:00 P.M. and 1200 Noon,
Monday through Friday and all hours Saturday, Sunday and holidays as listed in the
General Terms and Conditions.
A customer must contract to be on the Contract Demand rate for a minimum of one year.
The Department may, at its own discretion, move a customer exceeding the contract
demand level to the general Commercial C Rate.
Customer Transformer Ownership:
A customer requiring a minimal transformer capacity of over 2,000 kW will be required
to furnish its own transforming and protective equipment, including mat, vault, primary
and secondary cables, conduits, etc., which must comply with the specifications of the
Department. The following discounts apply when the above is complied with:
$.12 per kilowatt of demand when the service is taken at 2,400/4,160 volts.
$.25 per Kilowatt of demand when the service is taken at 13,800 volts.
$375 per Kilowatt of demand when the service is taken at 34,500 volts.
Rate Filed: January 30, 2014
Effective: On Billings on or After February 1, 2014
Filed By: Coleen M. O'Brien, General Manager
Town of Reading, Massachusetts
Municipal Light Department
MDPU # 231 supersedes
and cancels MDPU # 223
Commercial Schedule C Rate (cont'd)
Metering:
The Department may, at its option, meter at the customer's utilization voltage or on the
high side of the transformers through which the service is furnished.
In the latter case, or if the customer's utilization voltage requires no transformation, a
discount of 1.8% will be applied to the bill exclusive of the fuel charge but in no case will
such a discount be allowed if the metering voltage is less than 2,400 volts.
Meter Reading and Billing:
Bills under this schedule will be rendered monthly. A prompt payment discount of 10%
will be allowed on the current bill, excluding fuel adjustment charges, only if the entire
bill is paid -in -full by the discount due date.
General Terms:
Service hereunder is subject to the General Terms and Conditions which are incorporated
herein and are a part of this rate schedule.
Rate Filed: January 30, 2014
Effective: On Billings on or After February 1, 2014
Filed By: Coleen M. O'Brien, General Manager
Town of Reading, Massachusetts
Municipal Light Department
MDPU # 232 supersedes
and cancels MDPU # 224
Industrial Time -of -Use Schedule I Rate
Designation:
Industrial Time -of -Use Rate
Available in:
Reading, Lynnfield Center, North Reading, and Wilmington
Applicable to:
Service under this rate is available to industrial or commercial customers who take all
their requirements under this rate. All electricity furnished under this rate will be metered
using an electronic meter capable of metering On -Peak and Off -Peak energy as well as
kW demand.
Notice:
All customers taking electric service under the Industrial Time -of -Use I Rate will be
required to give the Department two (2) years prior written notice of its intention to take
its energy requirements from other supplier and/or resource other than this Department
while remaining on the Department's service territory.
Character of service:
A.C. 60 cycles: single phase or three phase.
Customer Charge:
$30.02 per month.
Demand Charge:
$8.61 per Kilowatt for all demand usage.
Energy Charge:
$.09208 per Kilowatt -hour for all Kilowatt -hours usage during the On -Peak hours.
$.02763 per Kilowatt -hour for all Kilowatt -hours usage during the Off -Peak hours.
Definition of Periods:
The On -Peak period is defined as the hours between 12:00 Noon and 7:00 P.M., Monday
through Friday except holidays as listed below. The Off -Peak period is defined as the
hours between 7:00 P.M. and 12:00 Noon, Monday through Friday and all hours
Saturday, Sunday and granted holidays as listed below.
Rate Filed: January 30, 2014
Effective: On Billings on or After February 1, 2014
Filed By: Coleen M. O'Brien, General Manager
Town of Reading, Massachusetts
Municipal Light Department
MDPU # 232 supersedes
and cancels MDPU # 224
Industrial Time -of -Use Schedule I Rate (cont'd)
Term:
A customer electing to be billed under this rate must remain on this rate for a minimum of
one year. At the end of one year on this rate customer may elect to remain on this rate or
be billed under the C Rate.
Energy Conservation Charge:
The bill for service hereunder may be increased or decreased as provided by the Energy
Conservation Charge.
Fuel Adjustment:
The bill for service hereunder may be increased or decreased as provided by the Standard
fuel Adjustment Clause.
Purchase Power Adjustment:
The bill for service hereunder may be increased or decreased as provided by the Purchase
Power Adjustment.
Measurement of Billing Demand:
The Billing demand shall be the highest of the fifteen minute kilowatt demand established
during the billing period, but not less than eighty percent of the maximum demand
established during the preceding summer or sixty percent of the maximum demand
established during the winter period.
Definitions of Seasons:
The summer Season is defined as the months of June through September and the Winter
Season is defined as the months of October through May.
Farm Discount:
Customers who meet the eligibility requirements set forth by the Massachusetts
Department of Food and Agriculture for being engaged in the business of agriculture or
farming, and upon certification to the RMLD by the Massachusetts Department of Food
and Agriculture, will be eligible for an additional ten percent discount, prior to the RMLD
prompt payment discount, on rates and charges applicable on their monthly billing
statement.
Rate Filed: January 30, 2014
Effective: On Billings on or After February 1, 2014
Filed By: Coleen M. O'Brien, General Manager
Town of Reading, Massachusetts
Municipal Light Department
MDPU # 232 supersedes
and cancels MDPU # 224
Industrial Time -of -Use Schedule I Rate (cont'd)
Customer Transformer Ownership:
A customer requiring a minimal transformer capacity of over 2000 kW will be required to
furnish its own transforming and protective equipment, including mat, vault, primary and
secondary cables, conduits, etc., which must comply with the specifications of the
Department. The following discounts apply when the above is complied with:
$.12 per Kilowatt of demand when the service is taken at 2,400/4,160 volts.
$.25 per Kilowatt of demand when the service is taken at 13,800 volts.
$.375 per Kilowatt of demand when the service is taken at 34,500 volts.
Metering:
The Department may, at its option, meter at the customer's utilization voltage or on the
high side of the transformer through which the service is furnished. In the latter case, or
if the customer's utilization voltage requires no transformation, a discount of 1.8% will be
applied to the bill exclusive of the fuel charge but in no case will such discount be
allowed if the metering voltage is less than 2,400 voltage
Meter Reading and Billing:
Bills under this schedule will be rendered monthly. A prompt payment discount of 10%
will be allowed on the current bill, excluding fuel adjustment charges, only if the entire
bill is paid -in -full by the discount due date.
Granted Holidays
Under the Industrial Time -of -Use Schedule I Rate the holidays granted for Off -Peak are;
New Year's Day, President's Day, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day, Columbus Day, Veteran's Day and Christmas Day.
General Terms and Conditions:
Service hereunder is subject to the General Terms and Conditions which are incorporated
herein and are a part of this rate schedule.
Rate Filed: January 30, 2014
Effective: On Billings on or After February 1, 2014
Filed By: Coleen M. O'Brien, General Manager
Town of Reading, Massachusetts
Municipal Light Department
School Schedule SCH Rate
Designation:
School SCH Rate
Available in:
Reading, Lynnfield Center, North Reading, and Wilmington
MDPU # 233 supersedes
and cancels MDPU # 216
Applicable to:
Applicable to public or private schools offering kindergarten, regular elementary, middle,
and high school as approved by the Department, who take all their requirements under
this rate. All electricity furnished under this rate will be metered through one service
unless it is convenient for the Department to do otherwise.
Notice:
All customers taking electric service under the School Rate will be required to give the
Department two (2) years prior written notice of its intention to take its energy
requirements from other supplier and /or resource other than this Department while
remaining on the Department's service territory.
Character of service:
AC 60 cycles: single phase or three phase.
Customer Charge:
$6.01 per month.
Firm Demand Charge:
$6.28 per Kilowatt for all demand usage.
Energy Charge:
$.05265 per Kilowatt -hour for all Kilowatt -hours usage.
Budget Billing:
The customers under the School Rate may elect the Budget Billing program under which
the customer is required to pay levelized amount to the Department each billing period
during the calendar year. This rate is not available to School Rate Customers electing the
Contract Demand Rate, or the Non Firm Demand Rate. The specifics of this program are
outlined in the Department's General Terms and Conditions.
Rate Filed: January 30, 2014
Effective: On Billings on or After February 1, 2014
Filed By: Coleen M. O'Brien, General Manager
Town of Reading, Massachusetts MDPU # 233 supersedes
Municipal Light Department and cancels MDPU # 216
School Schedule SCH Rate (cont'd)
Energy Conservation Charge:
The bill for service hereunder may be increased or decreased as provided by the Energy
Conservation Charge.
Fuel Adjustment:
The bill for service hereunder may be increased or decreased as provided by the Standard
Fuel Adjustment Clause.
Purchase Power Adjustment:
The bill for service hereunder may be increased or decreased as provided by the Purchase
Power Adjustment.
Measurement of Billing Demand:
The billing demand shall be the highest of the fifteen minute Kilowatt demand
established during the billing period, but not less than eighty percent of the maximum
demand established during the preceding summer or sixty percent of the maximum
demand established during the winter season.
Definitions of Seasons:
The summer Season is defined as the months of June through September and the Winter
Season is defined as the months of October through May.
Customer Transformer Ownership:
A customer requiring a minimal transformer capacity of over 2000 kW will be required to
furnish its own transforming and protective equipment, including mat, vault, primary and
secondary cables, conduits, etc., which must comply with the specifications of the
Department. The following discounts apply when the above is complied with:
$.12 per kilowatt of demand when the service is taken at 2,400/4,160 volts.
$.25 per Kilowatt of demand when the service is taken at 13,800 volts.
$375 per Kilowatt of demand when the service is taken at 34,500 volts.
Metering:
The Department may, at its option, meter at the customer's utilization voltage or on the
high side of the transformers through which the service is furnished.
In the latter case, or if the customer's utilization voltage requires no transformation, a
discount of 1.8% will be applied to the bill exclusive of the fuel charge but in no case will
such a discount be allowed if the metering voltage is less than 2,400 volts.
Rate Filed: January 30, 2014
Effective: On Billings on or After February 1, 2014
Filed By: Coleen M. O'Brien, General Manager
Town of Reading, Massachusetts
Municipal Light Department
MDPU # 233 supersedes
and cancels MDPU # 216
School Schedule SCH Rate (cont'd)
Meter Reading and Billing:
Bills under this schedule will be rendered monthly. A prompt payment discount of 10%
will be allowed on the current bill, excluding fuel adjustment charges, only if the entire
bill is paid -in -full by the discount due date.
General Terms:
Service hereunder is subject to the General Terms and Conditions which are incorporated
herein and are a part of this rate schedule.
Rate Filed: January 30, 2014
Effective: On Billings on or After February 1, 2014
Filed By: Coleen M. O'Brien, General Manager
Town of Reading, Massachusetts
Municipal Light Department
Designation:
Street Light D Rate
MDPU # 234 supersedes
and cancels MDPU # 225
Street Lighting Rate Schedule D
Available:
Reading, Lynnfield Center, North Reading, and Wilmington
Applicable to:
Street Light service on all public, private, and unaccepted streets where the Department
has private facilities for supplying electricity and where the installation work involved
is limited to the necessary lighting unit and connection on the same pole.
Energy Charge:
The rate per year for the standard 4,000 -hour schedule is as follows:
Fixture Type
Annual Rate Annual kWh
58 Watt Incandescent
$55.40
232
92 Watt Incandescent
$55.40
368
50 Watt HPS
$29.98
244
100 Watt HPS
$30.03
508
100 Watt Mercury
$41.38
520
100 Watt Mercury UG
$41.38
520
175 Watt Mercury
$41.73
860
250 Watt HPS
$55.22
1,228
400 Watt Mercury
$54.18
1,840
400 Watt HPS
$54.24
1,828
Note: Incandescent and Mercury lamps will no longer be supplied for new
installations.
Fuel Adjustment:
The bill for service hereunder may be increased or decreased as provided by the
Standard fuel Adjustment Clause.
The Fuel Adjustment will appear on the bill as the monthly fuel charge multiplied by
one twelfth of the Annual kWh shown above for each Fixture Type.
Rate Filed: January 30, 2014
Effective: On Billings on or After February 1, 2014
Filed By: Coleen M. O'Brien, General Manager
Town of Reading, Massachusetts MDPU # 234 supersedes
Municipal Light Department and cancels MDPU # 225
Street Lighting Rate Schedule D (cont'd)
Purchase Power Adjustment:
The bill for service hereunder may be increased or decreased as provided by the
Purchase Power Adjustment.
The Purchase power Adjustment will appear on the bill as the monthly charge
multiplied by one twelfth of the Annual kWh shown above for each Fixture Type.
Extra Pole Cost
When an extra pole is required, specifically for street lighting, there will be an extra
cost based upon pole size, including up to 100 feet of secondary.
30 foot or 35 foot Class 4 pole $44.00 per year
40 foot Class 4 pole $48.00 per year
Meter Reading and Billing:
Bills under this schedule will be rendered monthly. A prompt payment discount of 10%
will be allowed on the current bill, excluding fuel adjustment charges, only if the entire
bill is paid -in -full by the discount due date.
General Terms and Conditions:
Service hereunder is subject to the General Terms and Conditions which are
incorporated herein and are a part of this rate schedule.
Rate Filed: January 30, 2014
Effective: On Billings on or After February 1, 2014
Filed By: Coleen M. O'Brien, General Manager
Town of Reading, Massachusetts
Municipal Light Department
Designation:
Cooperative G Rate
MDPU # 235 supersedes
and cancels MDPU # 217
Cooperative Resale Schedule G Rate
Available in:
Available to municipal lighting plants and private companies whose service territory is
adjacent to the service territory of the Department and for distribution to such customers
that cannot be served from the existing distribution lines, provided that the Department
has available facilities for furnishing the service
Character of Service:
A.C. 60 cycles: single phase.
Customer Charge:
$3.49 per month.
Energy Charge:
$.08349 per Kilowatt -hour for all Kilowatt -hours usage.
Fuel Adjustment:
The bill for service hereunder may be increased or decreased as provided by the Standard
Fuel Adjustment Clause.
Purchase Power Adjustment:
The bill for service hereunder may be increased or decreased as provided by the Purchase
Power Adjustment.
Meter Reading and Billing:
Bills under this schedule will be rendered monthly. A prompt payment discount of 10%
will be allowed on the current bill, excluding fuel adjustment charges, only if the entire
bill is paid -in -full by the discount due date.
General Terms and Conditions:
Service hereunder is subject to the General Terms and Conditions which are incorporated
herein and are a part of this rate schedule.
Rate Filed: January 30, 2014
Effective: On Billings on or After February 1, 2014
Filed By: Coleen M. O'Brien, General Manager
READING MUNICIPAL LIGHT DEPARTMENT
To: RMLD Board, Citizens' Advisory Board Date: January 16, 2014
From: Coleen O'Brien !'
Subject: RMLD Rate Increase
RMLD is seeking an approximate 5% increase to the overall bill. This increase equates to 9% of the
customer and base energy charges on the residential bill, and the customer, base energy and demand
charges on the commercial /industrial bill. Attachment 1, as an example, reflects the impact on a
residential customer at a net increase of $3.21 per month for 500 kilowatt hours.
The kilowatt hour sales projections over the last several years assumed unrealistic load growth
assumptions, which were not adjusted in the FY 2014 budget. These assumptions supported increased
base revenues to cover expenses, including the four town payments, and the annual Reading payment in-
lieu-of tax (PILOT) which was approximately $2.3 million. Attachment 2 addresses the reforcasted sales
for fiscal year 2014 which includes four months of actual data.
Massachusetts General Law, Chapter 164, Section 58, does not allow RMLD to have rates that are below
production costs. A net loss adversely impacts RMLD's ability to make its payment commitments and
increases RMLD's credit risk in qualifying for low cost contracts with power suppliers.
RMLD was in a transition phase during the FY 2014 budget process with an Interim General Manager
performing two critical job functions and the RMLD continuing its search for a General Manager. The
necessity of the rate increase is a result of a recent diligent review of the budget to actual financials. It is
with fiduciary duty that this issue must be addressed proactively to ensure solid financial positioning by
the end of the fiscal year, delays only compound the revenue issue.
RMLD has not had a rate increase or an updated Cost of Service Study in over three and a half years.
RMLD is developing a long term Strategic Plan which focuses on reliability, rates, staffing and process
efficiencies. An RMLD Cost of Service Study model is currently being developed and its resultant study
findings and six year projections will be completed and presented later this spring.
Moving forward, the economy combined with the forecasted energy hikes due to transmission and
capacity over the next couple of years, will keep electric bill topics in the press for both the municipals
and investor -owned utilities alike. RMLD is a not - for - profit municipal and will, with due diligence,
remain with rates amongst the lowest in the state.
Attachment 3 reflects all the rate classes which the rate increase will affect: Residential Schedule A Rate,
Residential Schedule RW Controlled Water Heater Rate, Residential Time -of -Use Schedule A2 Rate,
Commercial Schedule C Rate, Industrial Time -of -Use Schedule I Rate, School Schedule SCH Rate,
Streetlighting Rate Schedule D, and the Cooperative Resale Schedule G Rate.
Attachments are as follows:
Attachment 1— Residential Breakout
Attachment 2 — Fiscal Year 2014 Reforecast
Attachment 3 — Salient Points e-mail from RMLD General Manager
Attachment 4 — PowerPoint presentation
EXISTING JANUARY 2014 RATES
RESIDENTIAL
CUSTOMER CHARGE
".
BASE RATE CHARGE
500 @
"'
$3.47
BASE RATE CHARGE
500
@
$0.08365
per kWh "'
$41.83
ENERGY CONSERVATION CHARGE
S00
@
$0.00100
per kWh "'
$0.50
FUEL CHARGE PER KWH
500
@
$0.04500
per kWh
$22.50
HAZMAT
500
@
$0.00100
per kWh "'
$0.50
NYPA CREDIT
500
@
($0.00375)
per kWh
($1.88)
PURCHASE POWER ADJUSTMENT
500
@
$0.001270
per kWh "'
$0.64
$67.56
TOTAL WITHOUT DISCOUNT
10% PROMPT PAYMENT DISCOUNT
($4.69)
TOTAL NET
$62.87
"'TOTAL BASE for DISCOUNT CALCULATION
$46.94
AVERAGE COST PER KWH
$0.12574
PROPOSED FEBRUARY 2014 RATES
RESIDENTIAL
CUSTOMER CHARGE
".
BASE RATE CHARGE
500 @
ENERGY CONSERVATION CHARGE
500 @
FUEL CHARGE PER KWH
500 @
HAZMAT
500 @
NYPA CREDIT
500 @
PURCHASE POWER ADJUSTMENT
500 @
10% PROMPT PAYMENT DISCOUNT
-TOTAL BASE for DISCOUNT CALCULATION
AVERAGE COST PER KWH $0.13216
Attachment 1
".
$3.78
$0.09118
per kWh "'
$45.59
$0.00100
per kWh "'
$0.50
$0.04500
per kWh
$22.50
$0.00000
per kWh "'
$0.00
($0.00375)
per kWh
($1.88)
$0.001270
per kWh "'
$0.64
TOTAL WITHOUT DISCOUNT
$71.13
($5.05)
TOTAL NET
$66.08
$50.51
$$ DIFFERENCE
$3.21
DIFFERENCE
5.11%
Attachment 1
W
M NN o
8 �p S 0
0
h of N
y
O
O N eA
ao
♦a srp.
LL F„ W
O M
N N
p Op��
N 8
V
to to r
O N T t
�
N
to
O~i
c�9 0�0
n
c l W J z
of n
8O
000
oNO
n p1 o ri .-
/V
O U >
aN0
P
3 Y01 1007
W
M
1 N�
d
h
w
x W
1�
CL N ; y
d
<
m
O O
LL
H U
? d
t0 O
O d N O
00
m tp 1pA� r b S
< �L
U O� W
G
S O S
N N fV n S
LLI
d O F- � d
cc
d
N O1 M M �-
~ a
w N
n
N
O
z < z
M LL
Q'
M
S 8 O
O O N
9
O O O
S S S
g �
S N
O F.
3
N
O N
O N
N
i
tC
i
N
Attachment 2
�
Q
to o
S O
$ � o Grtpp.
M N O
vo��
d
po pp pop M eye pp
�D �O O
ao
b
0 0 0
S O S
8
0 �y
S
�
N
;t
w$
NNS
b
8O
000
N
�c[p0y ppVl��
G n A $
aN0
P
3 Y01 1007
O
$
M
1 N�
d
h
M
1�
T
d
d
O O
LL
W
Q'
z
z
W
Q
�Co�pp , L0 d pp 00
V Np
S 01 .00 Q*
O N N
c0
0V^01
'�'f n N M O S
of d t0 N
b
N
S p0 S
S
S 5
N
Oh
IV
Oy�
O
10 o
1t0
n
$O
n
F•
r
S
O O ppO
O
O N
M
1N ♦�
a0
0)
W
�
pdp
O n0
00
1M(7_ N rte. 3
Q�
a�o
a
Wi
m
00
N M Q1 M M
00
�
d
N
N
N
J Q �
< W a
a M .-
U O
2 LL
7 w
1p�p h
N
0p
O1 M O O
�p 1+� C
N
10
Of
1(1 N q
Mf
O
N N
d d
.0
Z
z
~ M
_
R o�i
0p
ONE t� t�D
pd�
N
T 1�'f b N 10 01
� o N w {Wp f�
M. W 10 M
tM0_
00
4
N
d Od
tdV �
p
A
e- w
Op
N
Co
M
<
00
N M
n
O O 8
LM
O Opf ty0 tO
O
O O e0�1 (M
N
O
O O S
O
n
W
M N
oO
N
O O
M N
O
OD
O
ONO
10
h
^-. F- n
d
vppl d t"1
h
t0
1p
O
d
d
Q C
M N
po Ql N M r
d
N
N
M
� N
CD
w
2
2
LLJ
2
X
O
W
U
W O
F z
f
7
w
J
h
O
O
twA W
W
p>Q
w
W J Q
p
w
m LL N y
z
W
Q
W
�- Z
p
w
m w
>>
>
W W z a a
x
W
O
t7 z
W
=
F_ N
y
0
O
w
�
x
3 3 wa w
ui
>
w
z W<
2
O
a
p p
O'
w
w
0 0
U w
H
t7
z
W
a m
CD
C7
x
m 2 0
U
z
>
W W a
(h >
Q z W
H
a
x W z z
w O W
z
z
M O z
O U 7
z
a F
W U
g
W
J J O
O-i
�
x
w
O 0 U
F.•
�
QF
LIL
LL LL 0
W
y N O< g�
C'
F-
C r
W
O O`
Y W C7 N
4.
z
F z W d
d
O
d
< W U
uj
H
0
i
J J C
Vf w 3
R 2? a;
O
a
to W;
OF w
a
U
Z
W
IL
Q Q p
N rn 1
Q O 2 Q
1 LL W (7
Q
~O
d
>> a< W p
a d O f 0 F-
o f
2 z 2
Q
p
rn 2
<
~
~ CXR
F-
O
F-
O
O
z
U O
Z C
Oz.
F-
F-
Attachment 2
Jeanne Foti
From: Coleen O'Brien
Sent: Monday, December 23, 2013 3:34 PM
To: RMLD Board Members Group; Tom 011ila (taollila @verizon.net);
davidnelson @verizon.net; ghooper @townofwilmingtonma.com; tonycapobiancol
@gmail.com
Cc: Jane Parenteau; Bob Fournier, Kathleen Rybak; Jeanne Foti; Priscilla Gottwald;
jhull @wilmingtonma.gov; gbalukonis @northreadingma.gov; LeLacheur, Bob; william-
gustus @town.lynnfield.ma.us
Subject: SALIENT POINTS ADDRESSING THE RMLD RATE INCREASE
Attachments: RESIDENTIAL IMPACT.pdf
Good afternoon: I just sent a copy of a press release (being sent to the local papers today) to you as well as the
Selectmen and Town Managers. It was noted in the press release that presentations to the Board of Commissioners and
Citizens Advisory Board are scheduled for January. In the interim, I wanted to share the salient points for the rate
increase with you.
The laws that govern utility financing can be quite different from regular business structures, as well as the
terminology. The intent of this email is to consolidate the salient facts.
RATEINCREASE
For a 500 KWHr residential customer, a 9% increase to the base rate which affects only the customer and base
rate charge portions of the bill, equates to a 5.3% increase to the overall bill or an increase of $3.21. The
attached delineates this break -out for the residential class only.
KWHr sales projections over the last several years assumed unrealistic load growth assumptions. These
assumptions supported increased base revenues to cover all expenses and commitments. These load growth
assumptions were not monitored and did not come to fruition thereby leaving the projected net income for
FY14 at $380K. Realistically, the KWHr sales have trended flat ( -.32%) with residential slightly up and
commercial slightly down, however, commercial represents approximately 10% of all customers but a 65% of
KWHr sales and pulls in a higher Rate of Return than the residential class.
LEGAL AND OTHER ADVERSE IMPACTS
• Mass General Law (MGL) 164, Section 58, does not allow RMLD to have rates which are below production
costs. Ending with a net loss is a violation of MGL 164, S58.
• Pursuant to DPU 85 -121, RMLD's voluntary PILOT payment to the Town of Reading must come from net
income.
• If the projected net income of $380K gets depleted by the end of the fiscal year, RMLD would end with a net
loss, which is violation of MGL 164, S58. This could affect the PILOT payment made to the Town of Reading.
CREDIT IMPACT
• Rates which are below production costs will impact RMLD's excellent credit rating and the credit rating of the
Town of Reading.
• Rates which are below production costs are deemed a security and credit risk to power suppliers. RMLD's ability
to purchase power from suppliers will be adversely impacted.
PLANNING AND EXPENSES gar)
• Rate Stabilization and Deferred Fuel Funds should be set and used to cover catastrophic events such as the
purchase of replacement energy for an unexpected generator shutdown. One month of replacement energy
Attachment 3
could cost up to $1.5M during a peak period. As in the case of Katrina in 2005, RMLD depleted in excess of $3M
fuel reserves within a few months. cash transfer of rate stabilization funds would not affect the net income.
• RMLD has reduced its staff approximately 13% over the last 5 years without a strategic or succession plan. RMLD
has a number of key positions currently vacant. The Organizational Study will identify the staffing levels, create
movement in positions, and support skill set development to ensure efficient processes and meet current and
long term strategic objectives.
• The Long Term Reliability Study will identify and prioritize necessary capital improvements to ensure continued
safe and reliable service.
• The Depreciation Fund covers capital construction costs. The capital costs for a given fiscal year should be
delineated in an approved long term reliability plan. The base fund should be set to cover a catastrophic event
such as the loss of a main transformer, substation or other facility.
• A Cost of Service Study splits the pie by dividing costs by rate classes. RMLD's business model objectives
including setting its Rate of Return, as well as the Operating/ Maintenance and Power Supply budgets, are all
input values into the COS model. The COS will be done in the early spring.
Caiee vM. O'3riew
General Manager
Reading Municipal Light Department
230 Ash Street
Reading, MA 01867
IR
r-
O
,V JJ
V J
M
V
V)
C)
(1)
bA
C�
U
D
J
G
ca 0
m � �
0 cv
0
u
NO
PC
Attachment 4
L
hA
Q)
L
U
4-J
O
.�
Cl
Q)
C:
LO
U
O
cn
Ln
4--+
Ul
(U
: -J
. 0
E�
..
CUQ
,�
U
V)
�
_
>
Q
O
0
O
.>
O
E
+�
N
O
p
4-J
C:
0
-N
C
J
4''
L
0
V
U
U
.�
4-J
ry
+-j
4-1
4-j
un
p
.C:
Q)
.C—
0
Q)
=>
E
E
E
hA
Q)
L
U
Q)
Q
L
(U
U_
E
Q�
.+-'
Q
Q)
C6
Q)
un
+-j
ul
U
E
Q)
L
O
U
O
Q
�
a)
L
J
�
O
Of
m
v
0
.�
O
cn
E
4-'
4-J
O
V
Q
cn
Q)
E
4—
U
Q)
N
4-j
Ln
N
:3
(�
Nool
i
O
00
Lh
-
m
o
�*7z
U
�
4--
L/)
"�
'�
U
O
aJ
. —
a)
-0
-F-j
0
•
C6
L
(�
W
C6
D
4
- tj
z
.-
CA
V
^L
W
O M
CC
r-!
� N
� C
F v '
Y
m m
O
O
O
G
w
c
O
v
O
O
O
O
Op
O
O
w rn
h
}
d
O
O
c
o ,.
CO
E
ai
c
•E
'a
E
Ln
V
in
a
to v1
O
O
O
O
O
O
O
O O
O
O
O
O
Op
O
O
O
h
d
O
O
O
O
O
O
O
c
O
O
UO
Ln
O O
O
O
O
O
O
O O
O
O
O
O O
d
O
O
O
h
d
N
N
t
3
O
O
O
O
O
6
O
e-I
m
0
N
N
O
N
s-4
a-i
O
N
0
0
N
0
C,
°o
N
co
O
N
0
0
N
sylo
C0
(1)
CAA
C0
c/1
SVOO,
0 0
c/i
O
Co
Cr-
Q)
G
O
r—i
O
N
aA
0
00
O
O
N
E
O
O
Q�
Q.�
co
t
Q�
Q�
L
C�0
L—
Q)
4--+
Q�
O!WO--.O
0
0
O
Q)
,> U-)
4--� ..
0.—
i (1)
Q
un 4-J
0 U
__j :3
G
DC �
vi U0
4-J
�
L
Q)
t Co
U
O �
E
ca O
U
N
O'
U _
.0
" 4..J
a--+ (J)
Q) Ln
W (0
•
_O
0
U
4-J
U
M
U
E LF
O
U
Z3 4A
U
Lo
cn =
0 LLJ 4A
_0 O -�
.0 J
U `n
E au
� O �
0 >, U ro
U—
ca . ro ,
}, L. 0
.0
cn • 0 U
oC E
1
N
U V)
U_
a--, -
4J
•U i
0
N 4"'
� O
hA
O �
4-J >-
-� U
N
0
E
L- 0
> U
a)
U ?:
�--+ 0
un
.� Q c:
4-., U
V) 4=
U
N •Lo
12
E.,
O
4-J
L
°
-0
U
>.
•
4-J
i
*F
4�
Q
>
V
cn
(�
E
;~'
>
Ov
Q)
O
V
'-
V
+-J
L
c
Q)
UO
Q)
Z
.°'
o
4-
Ln
m
>
°
>,
>
F--
1
1�_�
T
UO
U
Q)
�
C
L
C
L
u
C6
V
_
Q
4-
U
c
ul
.-,
>
DC
can
M
L
• —
0
to
E
�j
U
U
O
L
. _
C
U-)
C
+-J
�•
m
°
�
'�
cn
.0
°
L
U
•�
Q
Q
_
E
U
U
O
-,
._
Q
4�
�c
L
(�
-0
Q)
r-
Q)
Ca
.
O
�--�
.-
(�
V
C6
N
'-
Q_
4-J
Q)
O
L
�:
C
>
-
(1)
(O
U
t1)
Q)
O
•
vi
ca
O
O
j,
C:
cn
4)
O
X
O
(J
()
V
L
Ln
W
Q.
Q_
�
O
L
=
�
�
0
Q)
Q)
>
(U
c-
Q)
G
Ln
Q)
c
Q
+-+
3
Ln
O
�
Q)
L
O
L
L
X-
O
E
J
ro
z
�
O
oc
cn
a.�o
V)
m
U
L
O
UO
O O
•— V
N O
O
•>
rle O
L
O
0- •
E
O
L
L�
O
4�
L-
O
4-
4�
D
O
0
Q)
w
O
O O
ca �
� O �
� N
Ln
cn —
Ln
M -C- W O
.�-- U U U
V)
c
O
4-J
Q
O
•
C6
U
—
�
a--�
L-
Q
o
4-J
' J
U
Sri
`�'
-
N
U
Q
•-
un
L
—
�
c—
-
cn
.�-.r
—
cn
�
c.n
.�
Q
cn
c�i�
4
c0
Ul
—
—
—
• X
—
—
�+J
• t�
},
U
U
O
4-J
Q
�
Q
Q
ul
;
Ln
f� Q
U
O
fB
C
O
c
U
c-
N
•0
Q
U
0
•�
Q)
U
Ln
r
E
CO
�
N
0
_
L
Q�
O
E
O
O
Ln
J
U
G
-0
•—
n
cn
Z3
c
a--+
O
c6
v
co
C:
•
.
Q
L
1
-
• _
4—
Z
ca
'WAW
_
j
Q)
U
Q)
>-
'
O
C
-0
U0
>
O
O
V
a-J
4-j
V
4-'
cn
a1
v)
•4--+
m
L.
m
O
-0
C:
4--
O
. N
. (/)
•—
L
Q
QJ
4-J
('p
V
4-J
aA
ul
U
O
4
bn
N
'�
•
4--J
'
O
Q)
+,
4-j
V
cv
.
>
J
Q
U
Q
E
E
I
I
I
IJ4
ELECTRIC POWER ENGINEERING
35 MAIN STREET HOPKINTON, MA 01748 TELEPHONE (508) 435 -9377
To: Coleen O'Brien, General Manager
Cc: Jane Parenteau, Bob Fournier, Bill Selden
From: Mayhew D. Seavey, Jr.
Date: January 17, 2014
Subject: Draft Proforma FY2014 Test Year Cost of Service
I have completed the 2014 Proforma Test Year Cost of Service analysis using the data that
RMLD has provided. This memorandum summarizes the results of that analysis. The results
confirm that, absent an immediate increase in rates, RMLD will have net income for the year, after
deducting the Return on Investment payment to the Town of Reading, of less than $400 thousand.
Starting with the FY2013 Historic Test Year Cost of Service Model that was shown to
board members at the training session on December 4, I updated the data as follows:
• Operating expenses, including purchased power, were taken from the "2014 Budget
Summary" dated 5/14/2013;
• Kilowatt -hour sales for each customer class were taken from your spreadsheet
"FY2014,1ul thru Dec Actualjatz thru Jun Same as FY 2013 (no growth) ".
This represents total sales just slightly lower (0.2 %) than the actual FYI sales
already in the model;
• I used the Cost of Service model to generate revenues from the existing and
proposed rates, rather than using the revenues in your budget. This is the only
difference between my results and yours;
The results show that, by our calculation and based on these assumptions, RMLD would
have Net Income of $297 thousand in FY2014. A calculation consistent with the regulations of the
Massachusetts Department of Public Utilities yields a rate of return of approximately 3% which is
far short of the 8% allowed under statute.
It appears to me that this outcome has resulted from flat or declining sales over the last few
years, which will tend to erode earnings if purchased power costs are being passed through directly.
It also appears that the decline in earnings was masked somewhat in FY2013 by an over - recovery
of purchased power expense that increased revenues above the level that would have been received
if all purchased power expenses had been passed through.
Because my Cost of Service model does not include monthly detail, it is not possible for me
to calculate the rate increase that would be required to earn the target level of net income. Since
my model agrees with RMLD's own projections for the entire fiscal year, I can be confident that
RMLD's projections of the increase needed for the remainder of the fiscal year are in line with
what I would project.
The next step of my analysis will be to look at FY2015 to determine the level of rates
needed to meet budgeted expenses and produce the desired net income. This task can be completed
as soon as final 2015 budget information is received.
If there are any questions regarding this, please do not hesitate to contact me.
m
z
w
a
w
0
i-
Z
J
J
Q
CL
U
z
Z
D
Q
w
oC
M,
z ,
N
0 4
,� N
v
4-J
oc o
o 4
4-j
Q
2 >
> u
O
J
U �
�
J
w v
v'
� O
CL J
Jc:
�-j
oC �
� O
O �
r•-V
Ict
O
N
c�
ca
O
a�
V)
co
m
a
Q O
o
N r O1 �
0 m m
�
O
L 0=
� O]
N N
3 a c
¢_ Y N
c
U L m
o
CO o
3
O p Y 0
c
0-
-
N
f N p 0
� C5
a M
2 ' upi
N
0 el °o
4
a
W C
¢ s E
r
N m
3
J Y O
1n
O O
tma
N O O
O o 3
1-7
Ct
N�1f)
CD
2 y
�
N
0 y N
N
U w p
J
Q a
U
'Uri 0
t O O
�! Y O O O O N a
003 1, O 10, `2
Y
°g �; �°°
-T N
CR
�; C')
O - LL
66
K
N �
"?wo
C7
Go
9 O
V]
'a N a
Gp N
!;; .o n
N o N p
o
r (D °w v I- a
Go 'A N 6n
N
� o
n � �
LO
y 0� LL]
N O o Lo
P O N
w T V
N OfA V
co
c
I,- o
V O1
r co
p Z6 m
W
2 W
¢ ¢ U
C7 J U Z
LU
¢ m x a
W
O a Y LL
O
z OF a
0
rno
{O N
m 00
C O ♦-
r
C c
r �2 N
O O
Q � �
V3
iQ
O c�7 C
r . - m
nor
I m o0'
a
O O
IA O
O 4
n ^ o
C4 O
N
69 ,9 O
co LO
ui o
O m
K V
� � o
V
H 4 V
C7 W
Q
d = U
0 J U W
Um3W
¢ J Y LL
O
z CL LL
O
Ci o
N O1
O
!fl
V
p o
Oi
n
M O
N
N N
N
Of
44 6
z
a
S
J
Q
a w
U 0
2 Q
� J U
o m x
0 Q Y
W O W
0. CL
N �
o o
M co
M r 0
O O
� N
i9
M
O O o
O CD
co r co N
e o co
O
O m a
t00
O M
� � o
N N O
R � �
N O N
N 49
0
G m a
W
0 co N
v O
K 69
m
Q a
O
O M
� �
Q O
o
N r O1 �
� m
�
O
O
? a
j
c
U L m
o
011-0
r
10
W Y 3
O N
N O
w
0 el °o
4
N
Q
W
N
cb
Y
N
F
x 0
N
N
N
W
0:
m
0
~ N
rL
N
~ x N
W O N
G u1 n
r
N
N
W
2
f
J
Q N
Q1
W
~ L
Y
O O
'22
W
aD M
O
n
H
¢
W
W n
¢ O
F9
a
w
¢
0
CL
J
Q
W
o
a
U
F
x
Z
C7
2
J
2
J
Z
a W
U
_ cc
W
Z Q
Q
= J U
J
LL
0
z m 3
Z
C ¢ Y
O
O
¢ n
-T N
CR
�; C')
O - LL
66
K
N �
"?wo
C7
Go
9 O
V]
'a N a
Gp N
!;; .o n
N o N p
o
r (D °w v I- a
Go 'A N 6n
N
� o
n � �
LO
y 0� LL]
N O o Lo
P O N
w T V
N OfA V
co
c
I,- o
V O1
r co
p Z6 m
W
2 W
¢ ¢ U
C7 J U Z
LU
¢ m x a
W
O a Y LL
O
z OF a
0
rno
{O N
m 00
C O ♦-
r
C c
r �2 N
O O
Q � �
V3
iQ
O c�7 C
r . - m
nor
I m o0'
a
O O
IA O
O 4
n ^ o
C4 O
N
69 ,9 O
co LO
ui o
O m
K V
� � o
V
H 4 V
C7 W
Q
d = U
0 J U W
Um3W
¢ J Y LL
O
z CL LL
O
Ci o
N O1
O
!fl
V
p o
Oi
n
M O
N
N N
N
Of
44 6
z
a
S
J
Q
a w
U 0
2 Q
� J U
o m x
0 Q Y
W O W
0. CL
N �
o o
M co
M r 0
O O
� N
i9
M
O O o
O CD
co r co N
e o co
O
O m a
t00
O M
� � o
N N O
R � �
N O N
N 49
0
G m a
W
0 co N
v O
K 69
m
Q a
O
O M
� �
� r
N r O1 �
� m
O
K OFA �
O
9
? a
aD O
O M
M OR
V 7 O
O1 O N
N O
9
IR
K�l
own
4 N O 000 Im
V-1 e-i 4/} 4A
4jlr in
a
a
C
n
1J
y
c
0
a,
-a
.a
0
.a
ca
v
a
J
V
s
i
y
O
1
V
�
�
ca
N
i
o
Ln
�
1!
O O
NaDo—I
O
iA Vf
eO-1
iA
4 N O 000 Im
V-1 e-i 4/} 4A
4jlr in
a
a
C
n
1J
y
c
0
a,
-a
.a
0
.a
ca
v
a
J
•m
V
O
V
rL^
V
0
Z
Q
Z
Lip
GJ
4—
Y
m
c
0
wool
a,
.0
O.
.a
0
m
a,
IL
Iw
c
O
m
Z
UDD C l0D
N N i-i r-I V}
Q
H
Ln
Z
wi:
a
a
Y
f0
G
C
O
O
r�
O
O
CL
CJ
C
r•,
L
0
Ll1
N
0
0
C
N
Ln O lJ'1
r-1 ri qj
'O
�i
t0
C
O
m
Z
Q
I—
Z
L
a�
Y
tC
C
O
►
O
co
N
a
CJ
G
I*
O
V
O O O O O O O O
00 W 111 M N e-1
Y
Q
F-
Z
R
�r
61-
GJ
Y
f0
c
O
0
v
a
CJ
G
PRIVILEGED /CONFIDENTIAL /ATTORNEY WORK PRODUCT
RUBINAND
RUD &AANLLP
Attorneys at Law
T: 617.330.7000 F: 617.330.7550
50 Rowes Wharf, Boston, MA 02110
MEMORANDUM
BY EMAIL
To: Coleen O'Brien, General Manager
Reading Municipal Light Department
From: Christopher Pollart and Karla Doukas
Re: Proposed Rate Increase and Issues Related to the 20 -Year Agreement
Date: January 16, 2014
On behalf of the Reading Municipal Light Department ( "RMLD "), you have asked us to
address issues raised by the Lynnfield Board of Selectmen in its January 15, 2014 letter
regarding RMLD's proposed rate increase for electric service.
At the outset, we note that it is our understanding from discussions with you that the rate
increase being considered by RMLD is 5 %, or $3.21 per month on a residential customer's bill
who uses 500 kWh per month and not 9% as referenced in the Lynnfield Board of Selectmen's
letter. It is also our understanding from discussions with you that RMLD has paid $2,301,221 to
the Town of Reading in fiscal year 2014 for calendar year 2013 as a voluntary payment to the
Town of Reading sourced from RMLD's below- the -line earnings or profit.
As you are aware, the Agreement between RMLD and the Towns of Wilmington,
Lynnfield and North Reading requires, among other things, that RMLD make in -lieu of tax
payments to the Towns for a 20 -year term ( "20 -Year Agreement "). The 20 -Year Agreement
contemplates two types of payments: (1) payments -in -lieu of taxes made pursuant to special
legislation, and (2) voluntary payments made from RMLD's below- the -line earnings as part of
its discretionary authority if and to the extent special legislation is not in effect. Section 5 of the
20 -Year Agreement specifically requires that RMLD's payments in lieu -of -taxes pursuant to
special legislation be treated as expenses for ratemaking purposes. RMLD obtained special
legislation, thus authorizing RMLD to include as annual operating expenses and recover through
its rates, the in -lieu of tax payments made to the Towns of Reading, Wilmington, North Reading
and Lynnfield. See St. 1990, c. 405, § 1.
G.L. c.164, § 58 governs the rate practices of municipal light plants such as RMLD.
Under this statutory scheme, RMLD has broad discretion to expend money and set rates. See
Bertone v. Department of Pub. Utils., 411 Mass. 536, 543 (1992); Municipal Light Comm'n of
1457557_1
Peabody v. Peabody, 348 Mass. 266, 270 -72 (1964). In fact, G.L. c. 164 grants the Department
of Public Utilities ( "DPU ") only limited power to review the rate practices of municipal light
plants. Seem e.g., Bertone, 411 Mass. at 548; Holyoke Water Power Co. v. Holyoke, 349 Mass.
442, 445 -46 (1965); Stow Municipal Elec. Department, D.T.E. 94- 176 -C, at 20 -21 (200 1)
(stating that the DPU has limited ratemaking authority over municipal light plants); Reading
Municipal Light Department ( "Reading'), D.P.U. 85- 121/85- 138/86 -28 -F (1987) (examining
RMLD's cost data and rate structure). The Court has recognized that municipal light plants do
not nearly require the same degree of scrutiny and supervision as investor -owned utilities.
Bertone, 411 Mass. at 547 -48. Thus, the DPU generally defers to the ratemaking authority and
policies of the municipal light plant. Id. at 543.
G.L. c.164, § 58 authorizes municipal light plants to set rates to earn an 8% return on the
cost of plant and allows rate increases as often as every three months. Notably, Section 5(c) of
the 20 -Year Agreement expressly recognizes that nothing in the 20 -Year Agreement precludes
RMLD "from earning a return of eight percent per annum on the cost of plant in accordance with
G.L. c. 164, § 58..."
In addition, Section 5(c) of the 20 -Year Agreement explicitly recognizes RMLD's right
and authority to make additional voluntary payments to the Town of Reading from its
unappropriated surplus, i.e., below- the -line earnings. Below- the -line earnings are generated
from the allowed return on cost of plant and any extra - period income, i.e., surplus. See, e.g.,
Littleton Electric Light Department (Advisory Opinion), D.P.U. 96 -11 (1996); Reading, supra;
In re Paras, D.P.U. 86 -16, at 1 -2 (1986). RMLD has considerable authority over the
management and use of its surplus funds and may determine the most effective use of the funds.
Revenues generated from the return on plant or extra period income may be used for below -the-
line items, such as discretionary payments. The DPU has recognized that municipal light plants
may use unappropriated earned surplus revenues derived from the return on cost of plant or any
"profit" to make voluntary payments to the host Town. See Reading, supra, at 15 -16; Peabody
Municipal Light Plant, D.P.U. 89 -189, at 7; In re Paras, supra, at 2.
The DPU also has sanctioned the practice of budgeting monthly payments to the host
Town based on its estimated rate of return as a reasonable exercise of the light plant's
management discretion. See Peabody Municipal Light Plant, supra, at 8. In Peabody Municipal
Light Plant, the Petitioners questioned the light plant's practice of including a profit estimate in
its budget to be transferred to the City of Peabody. Id. at 8. The DPU concluded that the light
plant could include up to eight percent of the cost of the plant in its net profit estimate in a
properly prepared budget. See id. The DPU reasoned that in the light plant's budget, the rate of
return estimate appears to be eight percent and the fact that the payments are made on a monthly
basis, after a profit is determined, is inconsequential if the cash management procedures
followed by both City and the light plant make it more convenient to do so. Id.
Accordingly, there is no legal basis to challenge RMLD's proposed rate increase to
increase its rate of return in accordance with G.L. c. 164, § 58 or the making of any additional
payments to the Town of Reading from RMLD's rate of return.
Please do not hesitate to contact us if you have any questions. 0
14575571
'U... Town of
�w is, i:::i
LYNNFIELD
BOARD OF SELECTMEN
Ms. Coleen O'Brien
General Manager
Reading Municipal Light Department
230 Ash Street
Reading MA 01867
RE: Rate Increase
Dear Ms. O'Brien:
PHILIP B. CRAWFORD
DAVID M. NELSON
THOMAS D. TERRANOVA, JR.
WILLIAM J. GUSTUS
Town Administrator
January 15, 2014
Thank you for having your staff attend the January 6, 2014 meeting of the Lynnfield
Board of Selectmen to discuss the proposed increase in rates to be charged for electric
service in Lynnfield. The presentation was enlightening, pardon the pun, but concerning
as well. On behalf of the Board of Selectmen, I want to express our collective concern in
such a large rate increase at this time.
In looking at the documents previously provided, and in listening to the presentation last
Monday, it is apparent that there has been a change in policy resulting in the decision to
raise rates so dramatically at this time. While we understand that RMLD is allowed to
earn up to 8% of net plant each year per state regulation, we are mindful that it is not
required that it do so. We are also concerned that that the additional PILOT payment
made to the Town of Reading is shown as a current year expense rather than as a
payment out of last year's unappropriated earned surplus. The whole purpose of the
Special Legislation that was passed as a result of the four town agreement was to allow
the payments to the four towns to be made out of current year revenue. The four town
agreement specifically states that additional payments to Reading, over and above the
four town payments, must come from unaapropriated earned surpluses. This can only
mean that these payments come from the prior year's surplus and are not current year
obligations.
The rate increase has been justified by your staff as being required in order to insure that
RMLD would have sufficient revenue to cover the cost of restoration of services in the
event of a major failure occasioned by weather or other disaster in the current fiscal year.
Without the charge for the additional PILOT payment against current year revenue, it
TOWN HALL. 781 - 334 -9410 781 - 334 -9412 FAX: 781 -334 -9419
55 SUMMER ST.. LYNNFIELD, MA 01940 -1823 e-mail: William- gustus @town.lynnfield.ma.us
would seem that RMLD should have similar surpluses to those enjoyed in prior fiscal
periods. While we understand that this could impact RMLD's ability to make next year's
additional PILOT payment to the Town of Reading, we do not think that necessitates a
9% increase at this time.
The additional PILOT payments to Reading are clearly required to come out of earned
surpluses as agreed by all four towns in the four town agreement. Reading, as a signatory
to this agreement, must have understood that if a surplus did not exist, the payment would
not be made. We have not been told of the existence of a formal PILOT agreement
requiring these payments and we do not know how they have been calculated in the past.
Nevertheless, we believe that the burden of increasing revenue this year to cover not only
current year costs but also to generate sufficient surpluses to make additional PILOT
payments to Reading next year should be borne not only by the rate payers but also the
Town of Reading in the form of a reduced additional PILOT payment next year, if
necessary.
In this way, RMLD could raise rates gradually over the course of the next few years in
order to implement current policy to improve the revenue performance of RMLD. We
think this is a far more equitable way to address this situation and one that will continue
to foster the long standing reputation of RMLD as a cost effective energy provider to its
customers.
Thank you for your consideration in this matter.
Very truly yours,
William J Gustus
Town Administrator
cc. John Stempeck
CAB
Board of Selectmen
Jeffrey Hull
Gregory Balukonis
•
0
Jeanne Foti
rom: Jeanne Foti
Sent: Wednesday, January 22, 2014 7:56 AM
To: RMLD Board Members Group
Subject: Account Payable Warrant and Payroll - No Questions
Good morning.
In an effort to save paper, the following timeframes had no Account Payable Warrant and Payroll questions. This e -mail
will be printed for the Board Book for the RMLD Board meeting on January 29, 2014.
Account Payable Warrant — No Questions
December 6, December 13, December 20, January 3, January 10 and January 17. There was no Account Payable Warrant
on December 27.
Payroll — No Questions
December 6, December 30 and January 13.
-anne Foti
Reading Municipal Light Department
Executive Assistant
230 Ash Street
Reading, MA 01867
781 - 942 -6434 Phone
781 - 942 -2409 Fax
Please consider the environment before printing this e-mail.
1_7
=) m
O y A
¢; 0 to
tD
to Q
0 0
V)
Z N
- ry
a
w c
F- m A
L 0 to
O o ; COO
UJN M
J
Q �
U �
� N 0
Y
J � O
O
to
aA
r E to 'o
m O O V
W Y M r to
7 f
m 0 C N O
7 U
en
N
IY
W
r N
Q t tD CD
3
n 0
O 3 to o O
x o w ci
y �
W
K
O
F h
J - N
Q t p (O
r3(n NO
W00 N tD
0 N n w
w
cr
N
Z
J
r Q n er
W O co
z r n h
X. U w 3 tV N
Z 0 ° T
< 0 y ^ w OV)
IL 0 w Ir
W 0
0 �
r �
x U)
C) rn
J ca ~
L
-� C7 w
Q Z 0
a
U < _
Z W U
m J
U) J
a
a
w
p h U
Ir
W a j =
K f J U
O 0 = 00 3
J
F Q H W
Or 9 M a
O N
O r
O M
Oa
� o a
V) �
N M
F` rn o
N Lco
N —
O O
V) M
O O
Lr) (ON o
h O •"
n
W O n
V)
n
� � o
n
N O O
N � �
O
N � V
N
n ^ o
a � �
w � �
N O a
n co rn
w
M
p o
� N
r �
M
w 6 C
w
0 W
� a U
U' J U Z
W
Q m x W
O J Y LL
Q LL
Ix
D
z C
O
OR o
M M
O 6 6
N y j O
w
to �
M pp o
M
O O O
n •-
1D OV)
N
Lo
v�
N o
t0 �: CC;
co
wow
V)
Cl M
CV O o
O
N 7 to
O V
H V)
n o
N
N O �
CO _
tOp � o
O N
w LO
O
to co o
V
OD O to
M �
V) 11
> W
Z f7
W
1 = U
i J U w
ov m x w
Q Q Y LL
0
z Or a e
O
M N
M o
c( lo (o
� o co
O p N
a V)
r
V c
N M O
,q r
A 7 N
O
N
40 V)
t0 o
N
N 7
O tD
w � ,
O m
M o
T M
O
M M o
r tb
N CD
O M
�M
Q�j o
Ar �
r m
Z; Q
oo
V)
to O o
N N O
� � N
T
N O �
z
Q
CL
U'
J
a
a w
U �
Z W
7 2 U
W
Y LL
O
Q _
CL IL
n r o
O O
M � N
M
� O N
V) �
M
O O o
N O M
t0 7 1i
r
K 6 N
V O
0
w N co
N O N
V)
O W
N
O O
V)
W D LN
N M N
M � �
� � N
(D
M N o
N
cn 7
m
{p 6 N
M
n O
n M o
r
H to
O r
r
w
0
r
x
f7
J
J
a
a
U W
Z 0
O K W
X, a U
Z J U Z
O m x W
J J Y LL
LL
O
f Or a
n n
O o
N N O
t,.) O t�
N
V)
w n
O m o
O
tD M M
O
N � N
fT 01
� � o
t0 N
� O N
V)
P, r-
N M o
N
M r
O �
O N
V) �
O tD
O m o
co
W 6, N
)
tN) o
N A n
N
64 N
tp
M O o
V M
O � N
w o
to
w
0
x
J
Q
a
U w
Z C7
O W
i a V
xZ
J
U
w m x w
W J Y LL
Y 0 w
3 a