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HomeMy WebLinkAbout2015-02-26 RMLD Board of Commissioners MinutesReading Municipal Light Board of Commissioners Regular Session 230 Ash Street Reading, MA 01867 February 26, 2015 Start Time of Regular Session: 7:30 p.m. End Time of Regular Session: 9:40 p.m. Commissioners: David Talbot, Chairman Philip B. Pacino, Vice Chair John Stempeck, Commissioner - Secretary Pro Tem Thomas O'Rourke, Commissioner Dave Hennessy, Commissioner Staff: Coleen O'Brien General Manager Robert Fournier, Accounting/Business Manager William Seldon, Assist. Director of Integrated Resources Citizens' Advisory Board (CAB): Mark Chrisos, Member DECEIVED TOWN CLERK READING. MASS. j , -3 ADO t Jeanne Foti, Executive Assistant Hamid Jaffari, Director of Engineering and Operations Call Meeting to Order Chairman Talbot called the meeting to order and stated that the meeting was being videotaped; it is live in Reading only. Opening Remarks Chairman Talbot read the RMLD Board of Commissioners Code of Conduct. Introductions Chairman Talbot introduced the new CAB Member from North Reading, Mark Chrisos, and thanked him for his service. eport of the Chairman introduction New RMLD Board Member — David Hennessy Chairman Talbot introduced the new RMLD Commissioner, Dave Hennessey, and thanked him. Public Comment There was no public comment. Commissioner Stempeck will be the Secretary this evening. Approval of Board Minutes October 2, 2014 (Attachment 1) Mr. Pacino made a motion seconded by Mr. O'Rourke to approve the October 2, 2014, as presented. Motion carried: 5:0:0. General Manager's Report — Ms. O'Brien — General Manager (Attachment 1) Recent Storm Feedback Ms. O'Brien provided feedback from the storms, now nicknamed snow apocalypse. Ms. O'Brien stated that with the back to back storms, RMLD actually had no outages. The team was ready in anticipation of the snow turning wet and heavy, but RMLD managed to get through the first few storms without any outages whatsoever. Ms. O'Brien thanked staff for being ready to go. Ms. O'Brien reported that during the most recent storm as the ice dams and icicles started breaking off, they hit and broke some SE cables as well as meters off houses. Although not electrical, Ms. O'Brien reminded those houses who have natural gas that there are vents on the gas meter that must be dug out, homes with septic there is methane discharge pipes that should be shoveled out as well as gas and electric dryer vents. Sometimes when there are problems within the house gases that could be back - feeding into the house are not thought of. Ms. O'Brien also pointed out that bathroom vents that are on the roof can get blocked in due to the snow. Ms. O'Brien stated that RMLD had to dig some lines and vents due to gas fumes in the Line & Operations area. Mr. Stempeck added that the regulation for the gas from ome furnaces is three feet, unfortunately the snow is about six feet. Ms. O'Brien stated that her presentation addresses all items found on the agenda under her report with the exception of the recent storm feedback, which has been already addressed. In addition, Mr. Tom 011ila, Integrated Resource Engineer, one of RMLD's recent hires, will explain RMLD's new Demand Response Program and Tangent. Regular Session Meeting Minutes 2 February 26, 2015 General Manager's Report — Ms. O'Brien — General Manager (Attachment 1) Brief Overview of RMLD's Roadmap Ms. O'Brien reported that Mr. Seldon will present for Ms. Parenteau, who is on vacation and handle the Competitive Electricit- topics followed, by Mr. laffari, RMLD's Director of Engineering and Operations, who will handle the Engineering & Operatio section. ' Ms. O'BrSei QteAthat the title for presentation includes RMLD' Strategic Plan for 2008. RMLD Mission Statement: The RMLD is committed to providing excellent customer service including competitively priced electricity as a result of diligence in the areas of power supply, risk management, system reliability and flexibility, as well as overall business efficiency. Ms. O'Brien stated that recently there was a company -wide staff meeting to remind everyone of the four bullets in the 2008 Strategic Plan. RMLD 2008 Strategic bullets are as follows: • Provide customers with a product mix that optimizes electric costs and maximizes value through energy efficiency and load management. • Procure a long term diverse and environmentally responsive power supply portfolio including consideration of ownership of generation. • Assure long term reliability of the RMLD distribution system. • Enhance customer service to residential and commercial customers to the highest level. Ms. O'Brien said that when she came on board, essentially the first bullet and half of the second bullet were being worked on diligently. She started working on the second half of bullet two, bullets three and four. Ms. O'Brien stated that has been RMLD's focus, the Organizational and Reliability Study is working in parallel. Ms. O'Brien stated that we will now address what we have been doing that for the last year and a half. Ms. O'Brien pointed out tl RMLD's Annual Reports were sent out in digital format. RMLD's motto in the Annual Report, was `Be Efficient, Get Greener AV) Go Paperless ", demonstrating what have we been doing. Ms. O'Brien provided the example of efficiency measures at the RMLD: Residential Hot Water Program, Time of Use Rate, Energy Star Rebate Program, Reliability and Efficiency and Career Development Programs and Training, the Operating Standards, Safety Committee and Construction Standards, Organizational and Reliability Studies, Distribution and Substation Maintenance Programs, SharePoint communication system, creating a new Tech Services Group and a new Apprentice Line Worker Group and the Working Groups, which all fit into the categories `Be Efficient ", "Get Greener ", "Go Paperless." Ms. O'Brien pointed out that for Energy Savings Measures RMLD has done the following: LED Streetlight Program, increasing renewable power supply portfolio, solar partnerships, peak demand reduction program, transformer load management and substation maintenance program, go paperless, let's move towards wireless data from communications internally with our customers within the electric system, the enhanced fiber network for the SCADA system, the distribution system, the new 500 Club AMI system, the responsive communications plan, the SharePoint, paperless billing and on line payments. The IPad for Commissioners decreases putting together the big Board books, this is how those models are targeted. Ms. O'Brien explained that the technology road map, the plan to get the system smarter in order that it communicates with the transmission system creates efficiencies such as the outage management to get the power restored in a timely fashion. Ms. O'Brien reminded the Board that RMLD currently has an AMR system, not an AMI system. The 500 Club meter installations were delayed for those customers to be on an AMI system which is integrated on top of the fixed network and put AMI in areas where a two way communication is needed. Evaluate implementation of distribution generation, develop cyber security system for RMLD technology, which is a requirement and maintain reliability. Mr. Seldon stated that for the energy efficiency programs, RMLD offers for the residential customers the renewable energy rebates and appliance rebates. We are more actively involved with the solar projects and have approximately thirty solar customers. Mr. Seldon continued with the programs for the commercial customers that include the Commercial Energy Initiative, which the Efficiency Engineers, Mr. 011ila and Ms. Shakespeare, are working diligently on with the many of the commercial customers as we" ` lighting rebates. Mr. Seldon said that the RMLD offers a myriad of rate options to residential and commercial customers to cov efficiency. One program is the controlled hot water heater project that is currently in transition because RMLD is in the process o getting the hot water heaters under one uniform technology. Mr. Seldon stated that other efficiency programs include the Time of Use Rate, not only for residential customers, but also for the industrial and commercial customers. RMLD also offers interruptible rates. Regular Session Meeting Minutes 3 February 26, 2015 General Manager's Report — Ms. O'Brien — General Manager (Attachment 1) Brief Overview of RMLD's Roadmap 011ila will review in detail the peak demand reduction program. Mr. Seldon highlighted the Economic Development, because ther than discussing revenue erosion because of the efficiency that is going on, RMLD is trying to meet this challenge. Some means 0 offset the declining revenue is offering technology that will help sell kilowatts hours such as the electric charging stations that Ms. Shakespeare has been working on. The RMLD has applied for and received a grant for this. RMLD has installed units at industrial commercial customers and hoping to grow that. RMLD is working with Sequentric systems which is wireless that is used for the hot water program and hope to expand this into other avenues. RMLD's Peak Demand Reduction Program Lunch and Learn Mr. 011ila reported that utility studies consistently rank RMLD rates as some of the lowest in the state. RMLD's challenge as managers of the organization is to continue that tradition. One of the ways RMLD does this is by working with the largest customers to mitigate the effects of cost pressures. Since 2008, RMLD has had several commercial energy efficiency programs that incentivize upgrading equipment to today's higher efficiency standards. However, last year RMLD added a new program aimed at reducing the peak demand of some of the largest commercial and municipal customers. Mr. 011ila explained that RMLD has been seeing increasing fees for capacity and transmission charges and almost all of the utility market forecasts indicate those will continue to rise in the near future. As a percentage of RMLD's overall wholesale costs those two items are becoming a much bigger piece of the pie. The goal of the Peak Demand Reduction Program is to help mitigate those increases. This has not hit full force yet, but it is coming so things are being put into place to help our customers deal with it. Chairman Talbot suggested that since we have a new Commissioner, maybe the public does not know what a capacity charge or a transmission charge is. Mr. 011ila explained that RMLD's wholesale power costs are broken down into several "buckets" and with deregulation of the industry several years ago the industry was divided up into certain segments. These segments include power plants, which most people think of as the Seabrook nuclear plant or a coal fired generating plant, which is easiest to identify. There are three phases, the power plants, the transmission lines that take the power from the power plants to get onto the major distribution points and lastly is the distribution side. RMLD is in the distribution segment. All of the power that RMLD sells to customers, RMLD buys from the power plants and the transmission owners provide the power to RMLD. Thus, the capacity costs are tied to the building of the power plants themselves. Those are long term and highly capital intensive investments that must be bought out ahead of time because these are paid by the owners well in advance. The same holds true for the transmission side which is to cover the AP*vsts of the copper infrastructure to get the high voltage power from the power plant to the distribution centers. Mr. 011ila continued, ose two items are tied to the infrastructure to the plant and the wires, the feeding mechanisms that provide the power to RMLD. Chairman Talbot clarified that, the capacity is a function of RMLD's peak day on a given month or over the year it is really just a single hour of the whole year for usage. Mr. 011ila answered that it is a single hour. That is the why the industry is structured that the rates customers pay to cover the capacity is determined by that one hour of the year when the entire system, all of ISO New England, is maxed out for what it planned for. From an engineering and systems point of view, it is not an optimal way to run a piece of equipment and size it for the worse case. Then most of the year it's running at thirty percent to forty percent capacity, but the way electricity works RMLD must be able to supply the demand in that worse case condition. Chairman Talbot asked if capacity costs represent RMLD's capacity cost or RMLD's portion. Mr. 011ila answered that everybody that takes load must pay their portion and that is why ISO New England, at that peak hour, takes a snap shot of how much power all of the different users are using and that determines each user's "piece of the pie" for the next capacity year. Chairman Talbot explained that is why RMLD is doing this because if one hour can be knocked every month, especially the one in July which is the worst of the year, there is huge payoff probably a six figure cost savings. Mr. 011ila pointed out that although RMLD is not a profit making entity, all of the cost that is incurred must be passed along to the customers. RMLD is trying to mitigate that, at least for those two items. Mr. 011ila stated that he would be happy to answer more detailed questions about this at some other time or set up a special session to discuss this topic. Mr. 011ila said that two items, transmission and capacity are becoming a larger piece of the pie, in order to address this, the RMLD has set up a new program, the Peak Demand Reduction Program (PDR). Mr. 011ila stated that RMLD's PDR Program offers commercial and municipal customers an opportunity to reduce their costs by adjusting their demand during a relatively few number of hours during the year. Customers can do that one of two ways, they can shed load by turning off equipment or adjusting set points or they can run onsite generators. In either case, the amount of power they e drawing from the RMLD's system is reduced and that is the goal of the program. When ISO New England is taking that picture LD wants their load to be as low as possible. Mr. 011ila pointed out that the summer peak is the easiest one to identify because it is 4;e hot days in July and August when all the air conditioners are working. On the transmission side, the transmission peaks are determined the same way for that maximum usage period, but that is each month. Therefore, every month of the calendar year contains a transmission peak. Those peaks are more difficult to forecast because they are not that obvious. Participation in the program is one hundred percent voluntary if the customer decides to opt out of the program entirely or just for certain events there is no penalty associated with it. Regular Session Meeting Minutes February 26, 2015 General Manager's Report Ms. O'Brien — General Manager (Attachment 1) R.MLD's Peak Demand Reduction (PDR) Program Lunch and Learn Mr. 011ila stated that this is really in the customer's favor. The economic benefit the customer can accrue for every megawatt of load the customer sheds, can equate to a total savings of $60,000 for that customer over the calendar year of the program. Mr. 011ila added that this is a significant savings. It can be achieved by participating a few hours a month. The key is working with the customers to educate them on the value of the program and to enable them to have the equipment and/or processes in place to allow them to take advantage of this. Some of the modifications entail; communications gear, providing them the information about what their loads are or to tie into automated systems that adjust their air conditioners during those hours. That is what RMLD has been doing over the past six months, focusing more on the educational side. This involves introducing the program and running workshops. We had a work shop a few weeks ago where customers came in and we spent a couple of hours training them. RMLD is conducting many onsite visits, to perform energy audits to work with the customers to figure out what works best for their individual company. Mr. Stempeck asked if the response has been good. Mr. 011ila answered, yes the response has been good and explained that this is a pilot project for our largest customers; i.e.; the 500 Club. RMLD has approximately ten to twelve of our larger commercial customers signed up with another ten to twenty in the process. The long term goal is to expand this program to all customers as well as projects on the residential side that could contribute to this. Primarily, the hot water heater program could be tied into a demand reduction approach. Mr. 011ila continued explaining another big piece of the implementation side is setting up a web portal for all of the customers in the program in order for them to have a live picture of what their load is. At any given hour or during the day they can see what their load profile is, this also has automated tools that calculate what the effect was of any load shedding action that they take. If the RMLD calls a demand reduction event, customers can call it up the next day to see how many kilowatts they saved that translates into dollar savings. These web enabled tools are provided by RMLD at no cost to the customer for signing up for the program. Mr. O'Rourke asked what the significance of the 500 Club is, what does that designate? Mr. Seldon explained that several years ago RMLD performed a study to define who the largest customers were and it was determined that the cutoff point was 500 kilowatts. The 500 Club is anybody that has a 500 kilowatt peak or greater. Mr. 011ila further explained the 500 Club is currently RMLD's top fifty customers. Much of his focus on the support side is working with those larger commercial customers to enroll them into this progrz as well as supporting their ongoing day to day projects or issues. Mr. O'Rourke asked if these customers are distributed evenly across the service towns. Mr. 011ila replied that these commercial customers are primarily Wilmington and North Reading, which is the bulk of the larger users. Analog is by far RMLD's biggest customer. Industrial Way and Ballardvale in Wilmington as well as River Park Drive in North Reading those are the three main centers of location for the commercial customers. Chairman Talbot asked about municipalities and their buildings', do they get a chance to participate in this program. Mr. 011ila replied that the municipalities are included in this and he has talked with representatives from all of the towns. In Wilmington, Messrs. Hooper and Kelley have looked into the program, but have been preoccupied with building the new high school. Mr. 011ila stated that he has spoken to all the municipal facilities staff and made them aware of the program. Some of the school buildings have some pretty high peak demand loads, so they could benefit from it. Chairman Talbot asked if the Town of Reading or the schools responded that they would like to garner these savings. Mr. 011ila responded that he is working with Kelly at the Reading High School although she is evaluating existing programs, but this will definitely be a piece of what she rolls out going forward. The Reading High School has already signed up for some energy efficiency programs that are pay for performance type contracts. One of the issues is they have to see how RMLD's program fits. Mr. 011ila explained that the both the 500 Club and municipalities are eligible for the PDR program. Chairman Talbot asked how much the Town of Reading could save with this program. Mr. 011ila replied that some of the Town of Reading's buildings were peaking at two or four hundred which could be a savings of as much as $25,000 total for all town buildings including the schools. It could easily be tens of thousands of dollars. A major push for RMLD now is to educate them and show them what they would have to do to implement the program. It is a relatively small amount of effort, but there are things that must be done. Ms. O'Brien commented that the 500 Club is being focused on right now. Mr. 011ila commented that in order for RMLD t� implement this program the customers' usage needs to be monitored which requires meters that are capable of recording and givi. the feedback for that. There are other issues such as integrating their result into the billing system and crediting them. Those are th logistics that RMLD needs to sort through, but it is all certainly worth doing because this involves substantial dollars. Regular Session Meeting Minutes 5 February 26, 2015 General Manager's Report — Ms. O'Brien — General Manager (Attachment 1) RMLD's Peak Demand Reduction (PDR) Program Lunch and Learn Chairman Talbot suggested that the CAB liaison report back to their towns to explain this savings opportunity and also report this ormation at the next CAB meeting for all the members. Mr. Stempeck asked how many of the customers that Mr. 011ila is working with would have these diesel generation capabilities. Mr. 011ila replied there are approximately twenty or thirty customers that have a generator, but a lot of them are fairly small. The generators they have are for emergency lights. The companies that have substantial generators are three or four. Charles River Laboratories has some large three or four megawatts of generators because of the nature of their business. RMLD is working with them to install some additional emissions equipment to allow those generators to be run in a non - emergency conditions. Most of those generators were only permitted to run under emergency conditions, so they cannot be run for economic reasons unless they are re permitted. RMLD is working through those issues with them and/or add additional emissions equipment in order that they can run them without violating any EPA guidelines. Mr. 011ila also noted that RMLD has been working with Analog to put in some additional generation which will be primarily customer funded. Mr. Chrisos asked if these generators are primarily gas. Mr. 011ila responded that the generators are primarily gas, although there are a fair amount of diesel. All of the Charles River generators are diesel, but even those can be outfitted with enough gear that it meets all the EPA requirements. Mr. O'Rourke commented that at the beginning of the presentation the 2008 Strategic Plan was discussed, is there is a process to revisit the strategic plan every five, seven or ten years. Ms. O'Brien replied that the recommendation is that every three to five years the Strategic Plan should be reevaluated to ensure it is in line with the most current technology, business plan or if the economics have changed. Mr. O'Rourke mentioned that with the new studies that are in process that this Strategic Plan will be revisited post studies. Ms. O'Brien said that after receiving the preliminary studies, recommendations will be discussed then addressed revising the Strategic Plan. From this, the long term Twenty Year Plan for both the system and the organization will be laid out. Chairman Talbot stated that to an uninformed person the numbers look high, that somebody can receive $60,000 back from RMLD by turning off things, asked Mr. 011ila where do those numbers come from, i.e., $3.50 per kilowatt hour when normally RMLD is paying a dime. Mr. 011ila explained that it is based on the savings that RMLD achieves on the capacity charge. RMLD is sharing the total vmgs that the system gets with the customer. Every month Ms. Parenteau receives a bill from the ISO for transmission and capacity es and it is all based on those numbers. Mr. Jaffari explained the overall capacity and transmission charges are reduced from the total amount that RMLD pays ISO thus when RMLD saves, the customer saves. Chairman Talbot stated that he understands no checks are being issued as a result the customer's bills will decrease. RMLD is saving more than reducing, but we are sharing those cost savings with participating customers. Ms. O'Brien answered, that is correct. Chairman Talbot asked since these are rates, who set those rates, isn't that the Board's job. Mr. Seldon answered that this is a pilot program at this point. Mr. 011ila stated those rates can be adjusted as the program develops and that the rates are based on the ISO capacity rates. Chairman Talbot stated that he wanted to know where the rates come from and if the RMLD gets a chance to set rates on what is going back to customers. Mr. 011ila used the example of the rebate checks RMLD issues to customers in order to lower their peak usage and that is all based on how much savings the system receives so it is just another form of a rebate program. Mr. Stempeck stated that he understands what Chairman Talbot is asking, but noted this is not system wide, these are pilot programs, if it grows out of a pilot program that is substantial then that would likely trigger a revisiting of the rates and maybe reduce the overall peak, but everything is going the right way. Ms. O'Brien stated there are competitive companies out there like EnerNoc that can come in and do the same type of thing. The RMLD wants its customers to come to them because with EnerNoc, RMLD would not get the reduction in the peak and not provide the customers sufficient incentive. The RMLD would still have to pay the peak price because that virtual generation they are creating by turning on their generator is worth the money. Chairman Talbot explained that he is only getting down to a level of rate setting and giving back customers a certain rate and asked where that number comes from and when does the Board get involved. Mr. Seldon stated that the specific rate that RMLD is basing the credit on is a FERC filed rate which is dictated to RMLD. In clarification, Chairman Talbot asked, the $1.50 and the $3.50. Mr. ,,,Seldon concurred. Mr. Seldon answered that is actually twice that, that is just a calculated credit off a FERC filed rate. hairman Talbot stated that this is all great stuff and asked if RMLD has the technical capacity at this time to expand to a larger segment of customers? The average homeowner cannot get $60,000 off their bill, but get $60.00 off their annual bill, for example, $5.00 or $10.00 per month for turning off the air conditioner at 3:00 p.m. Regular Session Meeting Minutes 6 February 26, 2015 General Manager's Report — Ms. O'Brien — General Manager (Attachment 1) RMLD's Peak Demand Reduction (PDR) Program Lunch and Learn Ms. O'Brien explained that right now RMLD is working with the 500 Club because that was the line of new meters with the two wa- communication. As those meters are being implemented into the 500 Club, or whoever wants to participate in that group, then the needs to be a discussion about how many of these meters RMLD wants to buy. There is the investment in the AMR System tha RMLD does not want to eliminate, but that two way communication is what needs be targeted. The next level of customers that needs to be addressed will be the next level of usage. This entails looking at the cost to RMLD and what goes back to the customers. If RMLD needs to put more capital into changing out meters than the existing meters this is a decision that has to be made. Mr. 011ila stated that on the residential side, the electric hot water heater pilot program currently has two hundred customers. That could be expanded to a more aggressive peak demand program. Although individual residences do not have substantial consumption, collectively it provides a reduction in the load. The homeowner is not actively involved, so implementation is easier whereas commercial customers are called reminding them to turn a machine off. Ms. O'Brien pointed out that Chairman Talbot may be referring to a home area network that is on a Time of Use Rate. There is a box in the home where RMLD provides notification of the peak time, then the resident lowers their peak usage during that hour. Certainly RMLD can come up with a program to incentivize them as well, it is getting that two way communication to the home network, customer interest and how many meters would need to be changed out. Chairman Talbot stated that these are all great programs, but long overdue for energy savings measures. It is obviously a huge payback to the customer at the high level. Chairman Talbot asked if there is a bottom line that RMLD expects these programs to cost in terms of the give backs, but if we are going to give back it would good to see the two numbers. It would be good to determine what is being given back, but RMLD is also seeing this larger savings as this progresses. Ms. O'Brien stated there can be charts of what the peaks are, but capacity/transmission will be going up significantly. Chairman Talbot asked for some projections for a sense of how much the Department is saving as well as the customers and improving RMLD's business. Mesh Network — 500 Club Mr. Jaffari said that RMLD is proposing approximately twenty megawatts over the next ten to twenty years for the Distributed Generation Installation Project. These are the meter generators that does not require heavy permitting such as emergency back - generators which RMLD can run for a number of hours. The generators can run six hundred to one thousand hours during the pea which is going to activate the peak shaving unit. These units are being used as peak shaving during the peak this way RMLD could get credit for capacity and transmission. Mr. Jaffari stated that this is where the industry trend is moving towards. The benefits are the demand response, peak shaving and no loss of kilowatt hour sales. Also, the ISO New England is issuing credits for both the capacity and transmission all the customers will benefit. The cost is approximately $1,000,000 to install per megawatt and the RMLD is working on two models. The first proposed model is customer owned, which the customer will pay for the installation and RMLD will be getting fifty percent of the ISO credit on capacity and transmission charges and the customer gets the other half. The second model is RMLD owned units at our substations. RMLD performed an analysis for four megawatts generators (2 -2MW units) over a period of ten years, which results in a cost savings of approximately $5,700,000 or $570,000 annual savings for RMLD if this program is implemented. Mr. Stempeck clarified return on investment is about five years, what is the equipment life. Mr. Jaffari explained that the equipment life is about ten to fifteen years. Mr. Jaffari explained that the credit that RMLD receives would be paying off the unit in the first five years and anything after that is free credit. This is a new technology trend. As you recall twenty to thirty years ago there were big mainframe computers, which are now replaced by small servers, notebooks, and IPads. It is the same concept where the big hefty power plants which will cost billions of dollars are now broken down into mini generators onsite in order to increase the reliability and economic cost benefits that will be associated with that. Mr. Jaffari continued, the capacity and transmission credit costs will triple in 2017. ISO New England is predicting these units will be paid back faster than five years maybe three and a half to four years. There are two proposed models, the first is that the customer pays, the other is RMLD pays and would try to install those units at the substations. The limit is two and a half megawatts per feeder without getting into heavy permitting. These can be used during the peak in order to generate savings to the customers. Mr. Jaffari stated that other municipals are looking into this are: Middleborough, Taunton, Braintree and West Boylston. These units are the micro turbines that have silencers, run very efficiently and are very cost effective. The noise level is approximately frft- decibels which is slightly audible at about ten to fifteen feet distance from the generator. Another positive is that RMLD will be at to operate these units from the SCADA. Mr. O'Rourke stated that it sounds like this is an easy quick win for RMLD, what is the vision for these units. Mr. Jaffari said that he envisions about ten of these units at two megawatts each. Because we do not know whether these credits are sustained over time or not, RMLD will move toward this technology cautiously. Regular Session Meeting Minutes 7 February 26, 2015 General Manager's Report — Ms. O'Brien — General Manager (Attachment 1) Mesh Network — 500 Club Mr. Jaffari said that it is anticipated to start with two megawatts per year and within the next ten years ramp it up to ten to twenty egawatts. By then, it will be clear how the marketplace is doing and whether it makes sense to continue investing or not. Mr. Jaffari oted that these units will be paid for at a faster rate than what they are estimated. The credit benefits everybody or at least we have the generating units that will be cutting down the capacity charges from our supplier in the area. Mr. Stempeck stated that the substations sounds like the most logical place to put them. Mr. Jaffari explained these units can be put in government buildings as well. One of the sites RMLD is proposing and studying is the old retired substation site in Lynnfield due to its location. This site already has pipes that go out to Main Street. The new substation RMLD is proposing to build in Wilmington would be another site which could contain more of these units. Mr. Jaffari added that RMLD is in the process of studying and analyzing to ensure this technology will produce the predicted savings. Mr. Chrisos asked if there have been discussions about any of the towns of where these will be sited. Mr. Jaffari answered, no we have not, because these units will be placed at our substations and we will get a construction permit for them. We are still in the discover stage, just an idea. Mr. Jaffari stated that he is proposing one unit at two megawatts for the fiscal year 2016 budget. That will result in an increase in the plant value and provide cost savings on the rates if completed before fiscal year 2017. The price of these units will go up in 2017 as ISO charges go up. Therefore the time to get started is now. Chairman Talbot asked if these are gas generators. Mr. Jaffari answered that these are two types; gas and also diesel. The dual fuel will increase the cost, but dual fuel units are not efficient, opens itself to possible environmental limitations and permitting which we want to avoid. Chairman Talbot asked if those assumptions are based on today's possible prices or are they based on what they were two years ago being doubled what they are now and what they will be in future? Mr. Jaffari answered this is based on the old prices and the last price received was about six months ago based on whatever that price was six months ago. Mr. Seldon stated that these units will not be run continuously. Mr. 011ila stated that the fuel is a relatively small piece of the overall price. Chairman Talbot stated that another technology that is getting better is batteries; lithium ion batteries. They have been dubious for grid storage and discharge, but they are getting much better rather quickly. The DOE has huge programs and there are all kinds of products coming out in grid batteries which would do exactly the same thing. The batteries can be triple charged overnight when W:ower is dirt cheap and turn it on at 3pm to 5pm discharge them and do the same thing at night. Chairman Talbot stated that he would e to see a full analysis why this would be better than a lithium ion battery since this proposal is based on two to three years from now before putting one in. Mr. Jaffari stated that right now based the research reveals that they are not cost efficient and not justified economically yet. RMLD cannot benefit form battery storage units when compared with DGs because the technology is not there yet. Also, required is a huge field. The solar technology is also the same. We need huge amounts of land/roofs for these units and the maintenance cost is not cheap either. Mr. Jaffari pointed out that the generation cost/kilowatt hour for both solar and battery storage units are not cost justified yet. The return on investment on both technologies are more than fifteen years. Mr. Stempeck stated that he is intrigued by the batteries as well and it would be great to perform a test in parallel, if it doesn't cost too much. The units are a proven technology that Mr. Jaffari is speaking about, it's been in the field and well tested, very reliable. The batteries are just coming out, they are huge, must be converted into AC with invertors and have all kinds of issues. Chairman Talbot commented, point taken and asked if this expansion is the program that Mr. 011ila is speaking about. RMLD wants to knock the two megawatts off with this new fossil fuel generator that is put somewhere and the same two megawatts would become even further expansion. Chairman Talbot asked why not simply further expand the peak shaving offers to a deeper level, to the 500 Club and the 400 Club and go to the next level to continue this. Why would RMLD want to add this rather than just do it intelligently? Mr. Jaffari replied that incrementally RMLD is moving towards this technology. RMLD wants to take a low risk technology as Mr. Stempeck said, to maximize benefits. Chairman Talbot commented that he gets the concept, but as with batteries he would like the analysis, before the Board gets a budget that includes a seven figure sum, go through permitting and local citing for a fossil fuel generator in this district. Chairman Talbot stated that we have also explained how peak shaving could be done with expansion of peak shaving programs directed by measure. What the relative cost benefits and complexity is of doing either one because you are about to talk about the smart grid, which is amazing, which is exactly what to do and that is the future. Mr. Stempeck stated that history repeats itself when he first came to Reading there was a bond issue for an incinerator, which was the 3t new environmental technology that we never used. The town never used it although there was huge bond issue that needed to be aid off via taxes because the environment permits were not correct, but it was hot technology at the time. Mr. Stempeck stated that he likes the concept of this new technology, but is leery of it and agrees with Chairman Talbot that an analysis should be performed and it would be wonderful to do a trial test. Regular Session Meeting Minutes February 26, 2015 General Manager's Report — Ms. O'Brien — General Manager (Attachment 1) Mesh Network — 500 Club Chairman Talbot stated that there will be a discussion at the Board level about this going forward and maybe the communities who they hear RMLD is installing a diesel generator. Mr. Jaffari added that the generators will be low pressure natural gas. Mr. Chrisos stated that the proposed pipe line, the Kinder Morgan pipeline, going through the Town of North Reading is a big issue within the Town of North Reading. Mr. Chrisos suggested that RMLD start discussions early with the communities if they are going to propose the distributive generation sites. Mr. Jaffari stated that this is not any different from when home generators are purchased as a back -up, same concept on a larger scale, it does not consume much gas as it consumes low pressure gas. It is very efficient with limited operational hours, maybe only six hundred hours per year, maybe less. For that six hundred hours the economic benefit that comes with it justifies that. Ms. O'Brien pointed out that the Organizational and Reliability Study Consultants are also looking at this in parallel. The consultants will be making recommendations that are separate from RMLD's proposal although they will get this information in order to evaluate it and provide their opinion. Mr. Jaffari continued with the grid modernization plan. This is a 30,000 foot plan that shows the next ten, fifteen, twenty years. There are three technologies, AMI, this is the home area network and this is the distribution automation or the distributed devices. Mr. Jaffari stated that as Ms. O'Brien explained, we do not completely have a full AMI technology. RMLD has invested close to $2,500,000 a few years ago with AMR technology, which is not full two -way communication capabilities. As a result, RMLD cannot implement some the technology driven devices. RMLD cannot have full two -way communication with office to meter and meter back to the office. There are sixty five meters in the 500 Club with usage at 500 kilowatt hours or more, Itron does not have any technology available for them or any solution. As a result of this, RMLD bid to employ technology and are looking into technology that could do two things at once, investing in AMI that could utilize the existing AMI Itron system without spending more money to change out all the meters. RMLD wanted that to be integrated into the new technology as well as being able to do all the demand response, distributive generation and get the distributed automation in place with this future trend in future technology. The reason for the distribution automation is the faster the outages are restored, the faster the meters will be restored and this results in more revenue for RMLD. Mr. Jaffari continued that RMLD purchased the Eaton technology, which this system is a mesh network and will be able to handle the metering system needs as well as the demand response and home area network devices which the next generation of home appliances will be IP based therefore it can be run from Mad. This system will be able to handle the IP based technology and the band widt large enough to bring the distribution devices and the electronic devices out in the field back to the office. The three systems will se the data into the data collector on the RMLD poles, the data collector with the fire wall will pass on to the switch that converts the signal into fiber. The fiber will jump on the RMLD fiber loop that is system wide with seventeen fiber nodes. As soon as the signal reaches one of the nodes the data will jump on this fiber network and it will be brought back to the servers in the office. Then the outage management system, SCADA system, AMI server, demand side management and the Cogsdale has all this data, the system will be able to feed all these servers with the data thus every server will get the related data needed for processing and integrity for all the information. Mr. Jaffari noted that once the information comes to the host servers then it will be transferred into some type of service for architecture or enterprise service bus, which is a data super highway where every lane is dedicated for a certain data. It will not slow down the speed of the servers and data processing. Once that data comes in it will be classified to its proper destination, it will go to the customer information system integrity work order management system for reporting. This is the historical data, the real time data from the SCADA and outage management system will transfer to the real time bus that is a real time server that will come through the SCADA for processing for the default detection isolation registration system which means automatically the fault will be isolated in a matter of seconds, rather than hours, meaning the meters will be brought back to life faster. The Outage Management System (OMS) will have a map that shows the pockets of where the outages are and the system is smart that can detect what can be the possible problem, where the fault is and once the sensor senses the fault it can send a message to the IPad or to the field devices. This will allow the field person, to direct the trucks where the fault is. The fault will be automatically be isolated in order to make the repairs thus leading to a fast restoration of the system rather than having two thousand customers out of power, there will be only be fifty to one hundred customers. Mr. Jaffari pointed out that there is the conservation voltage reduction which is another technique for savings to ensure that during peak time the demand for electronic devices is reduced by lowering the voltage, the electronic devices will not get damaged, but once the load is reduced the linear loads or the voltage or the current, chase one another will reduce the demand without damaging the appliances, but the nonlinear load will still have the voltage to keep up with the current. Then, there is the simulator which is for Engineers in order that they can simulate the data in the background for switching in a way to be more efficient, productive and le labor intensive which brings more savings. Another one is the power factor corrections. Right now RMLD has capacitors that being manually operated which means during the peak time when we try to lower the demand of the system it is another way to save money and get less capacity transmission charges from ISO New England. Regular Session Meeting Minutes February 26, 2015 General Manager's Report — Ms. O'Brien — General Manager (Attachment 1) Mesh Network — 500 Club Mr. Jaffari stated that currently, the field personnel have to go to the street to turn on the capacitors manually, however, once Wtomated they can be controlled through the SCADA. These will be programmed so when the load comes up these capacitors will ine in at different locations and suppress the rising demand. The goal is for the next ten to twenty years bringing the data from the field, more intelligent data for processing more intelligently, to become efficient and more productive with the result being bringing more cost savings to the customers, this is the plan. The plan will be rolled out in pieces and the Board will be provided ongoing reports until the whole picture is completed Mr. Stempeck asked Mr. Jaffari if he has these pieces ranked to the most important and which will be completed first. Mr. Jaffari replied, yes. Mr. Jaffari explained that this year RMLD upgraded the SCADA system and also purchased the OMS System that will be integrated with the CIS. This was done because the system had to be in place before the AMI System was implemented for testing to ensure all the data from the Itron as well as new AMI system could both be hosted in the server and the server integration would be seamless with the OMS System. Mr. Jaffari continued, that has been done in addition to purchasing a cyber - security firewalls this year. Mr. Jaffari mentioned that going forward during next year there is a plan that shows the proposed location of field switches and electronic devices. This information has been given to Booth & Associates for a second opinion to make sure that the switches are located in optimal locations and they are adequate. Once this is reviewed by Booth & Associates they will provide us their recommendations, then that will be the template. Chairman Talbot stated that all this is very technical and he understands the high concepts, it is outstanding that RMLD will have a smarter grid, which is the bottom line. For the average person who may be watching is the goal for RMLD to have faster responses to outages and smarter management of incidents and reliability or is it mostly so the demand can be more controlled noted in earlier points? Mr. Jaffari stated the three things he would like people to take out of this meeting is, at the end of the day once this plan is implemented it is going to minimize the duration and the frequencies of the outages and that is the top goal, rather than being out for hours it will be restored within seconds. Right now, the section that is damaged we roll the trucks and everything from the station all AP%he way to the last point on the circuit, for safety has to be inspected, switching must be done and then for the linemen to actually fix it at takes a minimum forty-five minutes to one hour. Chairman Talbot asked what the cost is to have it done this way. Mr. Jaffari replied that the overall cost over the next ten to fifteen or maybe twenty years will vary depending on the number of switches, number of technologies being used. It could cost anywhere from $10 million to $20 million dollars. A good things about stretching this plan over ten to twenty years is that RMLD will be able to keep up with the technology advancement. This is an open. architecture so it cannot be called obsolete within five to ten years from now because it is adaptable, flexible and has the ability to be matched to anything. Chairman Talbot asked to what extent right now is there a problem with longer duration and frequent numerous outages? His understanding was that there weren't a lot of outages. Mr. Jaffari agreed that there are not a lot of outages but there are maintenance issues that haven't been addressed such as the substations, switches and the transformers for years. Mr. Jaffari noted it is important to maintain the reliability by keeping up the maintenance as well as investing in the infrastructure. Chairman Talbot asked if the fundamental infrastructure will need to be expanded in order to do this. Mr. Jaffari replied that the current infrastructure right now can respond to the needs of the system, but RMLD can benefit from expanding fiber loop to reach out all of our assets in the future. As we are expanding our fiber loop for leasing to contractors like Light Tower, we must choose the routes that are most beneficial to RMLD. Once these are built the ownership is transferred to the RMLD. Chairman Talbot stated that he thinks that it is outstanding that the RMLD is going to have a smarter grid that the goal is that we have faster responses to outages, smarter management of incidents so there is more reliability or to control demand. Chairman Talbot asked if the fiber infrastructure is going to be expanded to support the infrastructure to do this. Mr. Jaffari replied that the current infrastructure meets the needs of RMLD, but in the future we might need to expand. Chairman Talbot said that this is all great, is all for it and would like to see the push be more towards the intelligence that provides us the demand side management as a priority. The RMLD needs to look at other ways to generate revenue. Jaffari stated that this plan will definitely help the Integrated Resource Department have more capabilities for implementing emand response and all of those energy savings. The RMLD needs to extract information from the field and customers back for processing into the office and does not want to depend on a third party. Currently, RMLD is utilizing Tangent for its demand response. The RMLD will not need Tangent or Interlock or anybody else, RMLD wants to have complete control over our own destiny. Chairman Talbot agreed that removing the middle man is a good goal. Regular Session Meeting Minutes 10 February 26, 2015 General Manager's Report — Ms. O'Brien — General Manager (Attachment 1) Mesh Network — 500 Club Mr. Pacino asked for the other priority items. Mr. Jaffari explained that the priorities include, (1) cutting down the duration any' frequencies of the outages even though the reliability is good (2) Keeping up with the needed system maintenance, and (, implementing DR for rate stabilization and keeping the rates as low as possible for our customers. The energy market prices are going up by 2017, NStar and National Grid have already increased their rates by 37 %. Programs like these will help to keep the rates down. The big driver for implementing these plans is optimizing the efficiency and increasing productivity. Any time RMLD trucks roll out that means the customers are spending money and one of the goals for implementing the smart grid or grid moderation or inteli grid is that there are less truck rolls, less money spent on the operational expense. Ms. O'Brien stated that this is all a road map, it is a vision, it has to be laid out in a schedule and it has to go through the budget process every year. We are just trying to formulate the long term plan. Chairman Talbot stated that the planning is long overdue and that this Board appreciates it. Mr. Pacino said that the Department has a blinking green light to go forward. Ms. O'Brien said that as Mr. Jaffari has pointed out, we look at the risk and the cost benefit. There will be no recommendations going forward without the figures. Mr. Jaffari explained that the Substation Maintenance Program is another new program started at RMLD. This program was developed in order to prolong the life expectancy of assets. RMLD just completed Substation testing for all substations because some of the equipment hadn't been tested for years. During the testing they found a few problems and are in the process of fixing them. The formation of the Tech Services Group is another great thing for RMLD. We are now training the techs in order that they can perform those services. RMLD has just spent over $150,000 to hire outside consultants to do the testing at the substation and now the techs will be able to test all the equipment, with the exception of 115kV breakers and 115kV infrastructures, everything else will be done in- house. Relative to the Distribution System Maintenance Program, Mr. Jaffari explained there are seven programs that are initiated in order to keep up with maintenance. RMLD now has a transformer replacement program because we have some transformers that are aged, really old at forty to forty five years and the life expectancy of a transformer is based on the Institute of Electronic Engineers is approximately twenty years depending on the loading. The fact that some of the transformers have had leaking in the past was the contributing factor to the failures. Thus, that program identified all the transformers and the replacements in a reasonable manner because eighteen hundred transformers cannot be replaced in a year. Within the next five to six years all the transformers will be replaced and that will add more to the plant value. Mr. Hennessy asked how many transformers are that old, thirty plus years old? Mr. Jaffari replied that there is a total of about 3,801 transformers and approximately 1,800 of those are over twenty years old. There are about three hundred padmounted transformers that contain large quantities of oil and have rusted. RMLD has paid close to $250,000 to $300,000 for oil clean -up. The oil leakage cost can range $20,000 to $50,000 depending upon the severity of the leak and we are trying to avoid that cost. We want to be proactive rather than reactive. Mr. Jaffari explained that the Pole Testing Program noting there are approximately 6,400 poles that RMLD owns in the system within all four communities. Based on the USPA mandate, ten percent of the RMLD's own poles are supposed to be tested annually, which means 640 poles. All 640 poles have been tested, the ones that needed to be addressed immediately have been done and have a continuing process to replace them all until everything is addressed. Mr. Jaffari stated that RMLD has a Manhole Inspection Program within the various parts of the towns and these are being inspected to make sure that RMLD's assets are complete, in good shape and if there are any sign of premature failure to address it before they actually fail. Mr. Jaffari commented on the revamping of the Tree Trimming Program and that RMLD has a good program in place. The RMLD awarded the bid to one of the best contractors, Mayer Tree Services. We have visited all the towns with a presentation informing them RMLD would like to cut the trees back from five feet to an increase of seven feet. The justification for this is because in some areas the crews were going back twice just to keep up with the maintenance. Mr. Jaffari stated that he will give a full report soon for the Porcelain Cutouts Replacement Program noting that approximately eight - five percent of the Porcelain Cutouts shatter in time with approximately twenty percent more left to complete. This will increase the safety and the durability of the system. Mr. Jaffari reported on the Quarterly Inspections of the 13.8kV and 35kV feeders the RMLD wants to get to the areas that need addressing, i.e., if anything is going on in the system, if there is a broken spreader or something is seen visually that could potentially• lead to a failure we want to address it before it happens. All the circuits in the system quarterly be patrolled to be check for obviot areas that need to be addressed, being proactive. The most important program initiated this year is the Infrared Scanner the substations and the underground facilities in the parks. RMLD has captured a few problems at the substations which have been addressed and fixed. Every month the crews go to the substations and compare the temperature changes. If they see there is a trend that something needs to be addressed it is addressed, again before it contributes to a failure. Regular Session Meeting Minutes 11 February 26, 2015 General Manager's Report — Ms. O'Brien — General Manager (Attachment 1) Mesh Network — 500 Club Mr. Jaffari then reported on the Building and Grounds Maintenance Plan which includes a truck maintenance study that is underway review and make recommendations on the fleet. This program will be started soon. We are also looking for improvements to the uilding and keeping up with the maintenance of all the buildings. The HVAC system, is obsolete and that is being replaced in order to have a sound system. Mr. Jaffari stated that Succession Planning and Career Development Planning is something Ms. O'Brien started when she joined RMLD, which is a great plan. Every employee in the organization has a Career Development Plan for them. This will ensure that all the most important assets in the organization have the skills necessary to carry us into the future. Since every employee has a Career Development Plan that lists the skills required in order to be prepared for the upcoming technology as well as provides a roadmap to make it to the next level. That is why we are very pro training that will be a cost savings to avoid unnecessary consulting fees. Mr. Stempeck asked how this program is being received by the employees. Mr. Jaffari replied that the employees like it because there is incentive for them and that is part of the employee retention plan. The organization is providing the opportunity to learn more, be more efficient and productive to do their jobs. Mr. Jaffari stated that this year alone there has been fifteen or twenty trainings with some of these trainings offered by the manufacturers at a very reasonable cost. They come in to provide us the training required which represents cost savings because of no travel costs. RMLD has brought in the best instructors in the field such as Energy Council of New England (ECNE) and Northeast Public Power Association (NEPPA). RMLD now uses the experts in the field rather than sending employees out for training costing $7,000 to $8,000 per person. Having the instructor come to the RMLD we can train ten or fifteen employees at one time which cuts costs. Ms. O'Brien added that at the beginning the employees were a little bit hesitant because the program changed to performance based for step raises, but as Mr. Jaffari stated, we have to identify the skill sets for current and future employees. Also, as Mr. Jaffari stated we could look at all the career developments, see the same people need the same type of training, bring instructors in as opposed to sending employees out. Ms. O'Brien stated that there were a few areas that RMLD was not compliant, those have been corrected. For example, the Linemen, it is RMLD that certifies the linemen to be Journeymen. If the RMLD does not have a Career Development Program that makes sure employees understand who have time and grade to learn all the aspects to become a Journeyman, similar to Local 104, then we really shouldn't be in a position to be certifying them. Now we have a full certifiable program for both, the memen and the Substation Technicians. Ms. O'Brien stated that at the beginning the employees were a little apprehensive because ey were not required to have much training. We are doing this in such a way that is encouraging. The concept is more like you'll learn more, have a better skill set and someday when you retire you'll have more skills that you can take into your retirement. From that perspective it has been well received. Mr. Stempeck stated that it could be more attractive for bringing employees in, as well as a benefit that you care enough about them to want to ensure their training and that is part of a benefit package for new employees. Ms. O'Brien stated that career development can be used for existing employees, also when hiring a new employee. Now we will know where employees fall on the scale for their skill sets. It is on the SharePoint, and you can check things out like a library, put them back in. When we get the dashboards fixed we will have a SharePoint that the Board can have to access this information. Mr. O'Rourke stated that what Ms. O'Brien mentioned doesn't sound like it's remedial, on one hand you have training as part of the performance management process and this sounds like more development. It's the power of the employees that they have skills you can use now or in a future position. Ms. O'Brien stated that now the employee is accountable and wants to get to the next step, therefore wants to get that training completed. Management has a responsibility to make sure the employee receives the training. We are all working together in order that each employee can succeed, be safe and that is the goal. Mr. O'Rourke asked if these goals get in their performance reviews, if they don't accomplish it or is that not the case. Ms. O'Brien replied if not accomplished, employees would not get their next step raise. Ms. O'Brien added that with middle management without step raises we are going in the direction to create steps. Mr. O'Rourke noted that there is no negative consequence, but is more in line with career plan so if they want to get ahead, this is the template and this is how they get to the next step. Mr. O'Rourke stated that it sounds like a good program because some programs are remedial and address performance gaps in this feels more like real career development, preparing for the job and/or future job. Ms. O'Brien educated the Board on how she explained this program to the employees. Mr. O'Rourke stated that the fact there is a career development for each employee is very ambitious and commendable. Jaffari stated that lastly, we are looking into updating or revising our operational policies and procedures to ensure that they are ective of the best practice. That is another way to become efficient and productive. Regular Session Meeting Minutes 12 February 26, 2015 General Manager's Report — Ms. O'Brien — General Manager (Attachment 1) Update on Organizational and Reliability Study Mr. Jaffari stated that the recommendations from the Organization and Reliability Study, will have a ten to twenty yearlong plan. Tl - studies will be completed late March and are currently eighty percent completed. RMLD has been working closely with Lels well as Booth & Associates to ensure their recommendations will be provided to the Board for an opportunity to review what RML needs to address. Mr. Jaffari stated that the recommended changes and goals will be put into a five year plan. Every year when the budget is submitted the recommendations will be submitted until completion. RMLD also needs to revise the 2008 Strategic Plan. As Ms. O'Brien stated, usually every three to five years these plans should be updated. It is time that RMLD's Strategic Plan be revisited. Mr. O'Rourke suggested that perhaps the Board review should be performed in a manner similar to the budget process. It might be helpful to have some advanced materials for the Board to review, that would ease with the presentations on these studies. Ms. O'Brien pointed out that the plan is to have presentations to the Board on both studies. Leidos flies in from Texas, due to the snow storms they tried for three weeks to get here. Leidos is now scheduled to be at the RMLD March 9, 2015. Currently, we have a preliminary draft data to review with them and then will be in a better position to review the benchmarking and current situation at that time. Power Supply Report — January 2015— Mr. Seldon (Attachment 2) Mr. Seldon reported that his highlight is the metered load portion which is the energy, noting that the metered load for the month is 61,599,102 kilowatt hours. The chart compares the Fiscal Year 2014 to Fiscal Year 2015, RMLD was metering a little bit more load last year, whether that was due to efficiency measures, or a combination of both it looks like it is not a lot of kilowatt hour reduction, but there is some kilowatt hour reduction. The majority of the months, September was pretty lean for the both years. Mr. Seldon stated that he is confident that February will come in higher because we've had a historically cool February. When Mr. Fournier and he looked at the actuals we were almost at last year's level today with two more days to go, thus should be at 4,000,000 kilowatts hours over what it was last year. The good news is that what we budgeted for energy purposes for the winter and the actual fuel numbers are coming in a little lower. On an energy side, that is always good to see. Mr. Seldon stated that he wanted to show the ISO New England interchange numbers show up on the overall portfolio. Basically, at any given time that piece of the pie is what is out in the Spot Market, everything else we have under contract, which is the piece of the energy part of our portfolio that would seeing the spikes if all of a sudden we had a real bad cold snap and prices went up. Mr. Seldon pointed out that in the winter time around fifte percent of our portfolio has the ability to fluctuate, the other parts are locked in. Mr. Hennessy asked if that is consistent year after year or just this year. Mr. Seldon replied that is an actual fifteen percent of what January looks like for us for this year and typically we try to narrow the gaps in the winter and in the summer it leaves less open to the swings in the market and let it get a broader on the shoulder months when it does not matter so much that is the goal. Mr. Seldon went on the next slide which was a comparison for what was budgeted for capacity costs, highlighting that the larger portion which is the actual capacity costs, but the reasoning for that is about eight months ago, it was reported that we transferred our Hydro Quebec transmission rates over to Energy New England to market for us. They did market the product and we just have not seen the capacity payment for January come in yet so that line will go down as soon as the capacity payment comes in. The actuals in the budgeted line will be closer together. Mr. Seldon then pointed out the transmission costs for the first six or seven months of the fiscal year and where the actuals are compared to what was budgeted. It is basically lagging by one month from where we had budgeted, no big surprises in transmission costs. Mr. Stempeck clarified, on the previous charge it shows we made money by having someone else market it? Mr. Seldon replied, yes we did, for at least this year it will work out in RMLD's favor. Chairman Talbot stated that at some point he would like to see a curve of what we are selling and how it has drifted down or is flat. Apparently, there are some new developments that were put in. He would like to see a twenty year curve at some point showing what we sell monthly, or total monthly sales by month for ten or twenty years. Mr. 011ila stated that RMLD has been looking at that especially over the last ten or fifteen years. Chairman Talbot stated that he is curious to see what that looks like and if there is any way to correct it. Mr. 011ila added that there are a number of variables that contribute to it, some of the major ones are weather and we are looking into ways to break it down to separate out those different effects. They are looking to see what the weather effect, what the economic effect and what is the fuel charge effect. Mr. Seldon stated that we are also going to drill down to the customer class. Mr. Seldon said that overall there are less kilowatt hour sales. Chairman Talbot stated that he would just like to see a simple curve r what has been sold over the last ten to fifteen years represented in a number, the bottom line for the month. The commission members liked the chart format for the presentation. Regular Session Meeting Minutes 13 February 26, 2015 Financial Report — January 2015 — Mr. Fournier (Attachment 3) Mr. Fournier reported that during the month of January, RMLD had a net loss, a negative change in assets, of approximately $200,000, which decreased the Net Income to $2.8 million. Budgeted Net Income was projected at a little over $2 million resulting et Income being over budget by about $750,000 or 36 %. The reason this came under budget is because the Fuel Expense is about $2 illion higher than Fuel Revenue. At the end of the year, that is a pass through and it is reflective of the timing of that particular month. The numbers look a little better through the first seven months. The actual Fuel Revenue exceeded the Fuel Expenses by $965,000. The Base Revenues are under budget by $230,000 or about 1.7 %. The actual Base Revenues came in at $12.9 million compared to the budget amount of $13.1 million. Mr. Fournier pointed out the budget reflected on chart, the reforecast numbers show seven months actual and five months projected for the remainder of the year, the budget numbers will not be met, but are close. One of the things Ms. O'Brien has implemented over the last several months is monthly meetings to go over the numbers. As we project out for the rest of this fiscal year, the budgeted numbers will not be met as stands, different factors go into that. The RMLD will make about 6% of the allowable 8 %. On the expenses, year to date Purchase Power Base Expenses are over budget by $250,000 or 1.5 %. The actual Purchase Power Base costs came in at $17.1 million versus the budgeted cost of $16.9 million. On the Operating and Maintenance side combined we are over budget by about $5,000 or less than one tenth of a percent. The actual and budgeted expenses came in at $8.3 million. Mr. Fournier continued noting on the chart, the budgeted amount projecting out the rest of this year the RMLD will come close to hitting its operating and maintenance expenses. These charts demonstrate that RMLD had a big decrease in actual expenses compared to the budget with a big discrepancy in the month of July even though the budget was exceeded. When flattened out through the whole twelve months of the fiscal year the RMLD will come close to what was budgeted. Mr. Stempeck stated that a three month rolling average it would actually smooth out a lot of those peaks. Mr. Fournier stated that the budgeted numbers going forward and are very close. July was an anomaly, but the some savings compensated for the over budget in the succeeding months, but overall for the twelve months we should be in good shape. The cash position, Operating Funds are at $11.5 million, the Capital Fund balance is at $5.8 million, the Rate Stabilization is at $6.7 million, Deferred Fuel is a little over $5 million and the Energy Conservation Fund is at $500,023. On the general information side, the year -to date kilowatt hour sales are 414,554,425, which is $3.27 million, or about 1% behind last year's actual figure. That gap which is due to the cold weather. On the Budget Variance side, cumulative within the five divisions, came under budget by about $20,000. RMLD is in the middle of the budget season, the capital and operating budgets are due the end of next month. engineering and Operations Report — January 2015 — Mr. Jaffari (Attachment 4) Mr. Jaffari reported on the Engineering and Operations Report during the month of January $100,057 was spent. That brings the total year to date to $1,810,740. The maintenance programs for part of December and January were slow due to the weather constraints. The padmount transformer replacements were completed as follows: single phase 11.36% and three phase 6.41 %. The overhead single phase, 8.62% and three phase 3.33 %. Pole testing 645 poles have been inspected, which represents 10% of the system. Mr. Jaffari stated that the results of the pole testing are as follows: 390 which passed, 233 failed with 21 replaced (the rest are being re- evaluated because some tested marginal) and 22 that were condemned have all been replaced. There have been 17 of 43 transfers completed to date. Mr. Jaffari reported that for Quarterly Inspection, lists the circuits that have been inspected. These circuits were are listed and there were not many problems found. In some areas there were some vines that were climbing the poles and were removed from the base of the poles. The Manhole Inspection is pending due to this year's extreme winter weather. It is difficult to reach the manholes on the streets and sidewalks therefore, will be put hold until better weather conditions. The Porcelain Cutouts Replacements are approximately 88% complete, with 314 needed to be done in order to finish the program. The Substation Programs are checked monthly and have not found any issues. Under the Substation Maintenance Program there are two breakers that need to be tested as well as the bushings at the 35kV Transformers at Station 4 which needs to be replaced. Mr. Jaffari explained the System Reliability report uses indices to define how well the system is performing. All categories are doing well compared against the national and regional average and they are all well below, which means we are doing well compared to other systems in durations and outages. Mr. Jaffari reported that the System Average Interruption Duration Index (SAIDI) for 2014 there is a spike which is higher than the regional average due to pole hits. For the month of January, across the board we are doing very well, no pole hits. The System verage Information Frequency Index (SAIFI) and Customer Average Interruption Duration Index (CAIDI) and we haven't had much utages to report, but those numbers go up in spring and summer. Mr. Jaffari then reported on the reliability and the cause of the outages, the average of the last five or six years with the contributing factors to the outages which 28% trees, 24% wildlife and 36% equipment where the transformers could fail or maybe the porcelain cutout. All of those maintenance related issues help decrease the incidents for equipment and the trees. Once we implement the maintenance and make progress these numbers will shrink. Regular Session Meeting Minutes February 26, 2015 14 Engineering and Operations Report — January 2015 — Mr. Jaffari (Attachment 4) Mr. Hennessy asked about the outages related to wildlife. Mr. Jaffari replied that RMLD uses animal life guards for the devices, but somehow the animals still manage to chew them. Budget Review Meeting Dates Ms. O'Brien stated that in an attempt to limit the amount of meetings, she e- mailed the CAB Chairman, Mr. George Hooper, and asked if the budget review meetings could be combined with the RMLD Board. Mr. Hooper prefers not to combine the meetings. Ms. O'Brien stated that Budget meetings and a Policy Review Committee meeting need to be scheduled. Ms. O'Brien reported that she and Mr. Jaffari will not be at the March 26 meeting, they are on vacation. Ms. Jane Parenteau will be acting General Manager during that timeframe and Mr. Peter Price will give the Operations and Engineering report. Ms. O'Brien noted that she and Mr. Jaffari will complete the budgets prior to departing for vacation. Mr. Pacino clarified what was the need for a Policy Committee meeting to take place. The Policy Committee members agreed to meet on March 5, 2015 at 7:30 a.m. General Discussion There was none. BOARD MATERIAL AVAILABLE BUT NOT DISCUSSED E -Mail responses to Account Payable/Payroll Questions Rate Comparisons, February RMLD Board Meetings Thursday, March 26, 2015 and Thursday, April 30, 2015 CAB Meetings Wednesday, March 11, 2015 Wednesday, April 15, 2015 — Budget Meeting — Wilmington and Wednesday, April 22, 2015 — Budget Meeting Executive Session 1J At 9:35 p.m. Mr. Pacino made a motion seconded by Mr. O'Rourke that the Board go into Executive Session to approve the Executive Session meeting minutes of October 2, 2014 and return to Regular Session for the sole purpose of adjournment. Motion carried 5:0:0. Chairman Talbot called for a poll of the vote: Mr. Pacino, Aye; Chairman Talbot, Aye; Mr. Stempeck, Aye; Mr. O'Rourke, Aye and Mr. Hennessy; Aye. Motion carried 5:0:0. Adjournment At 9:40 p.m. Mr. Pacino made a motion seconded by Mr. O'Rourke to adjourn the Regular Session. Motion carried 5:0:0. A true copy of the RMLD Board of Commissioners minutes as approved by a majority of the Commission. John Stempeck, Secretary Pro Tem RMLD Board of Commissioners N U N 0 c� O Q 5 W �4 O O N Q c V h� C4- C ct o t o � � U �--� ct r. -r � v Q � a � ac � � x O N n •� S � o U N w a� ct a� r U Q N Cr CD U'q CD 0 CD 0 !"' � CD CD 1 0 M CD rot- CD �CD �:3CD CD CD,���. 0 �CD C CD CD CD P) � CD CD r d MEW rA MOW. 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CD 0 � �R CD CD CD '--' O r' CD CD CL O MA CD C CD O O N O O low 0 co: \J 4W To: Coleen O'Brien From: Maureen McHugh, Jane Parenteau Date: February 20, 2015 Subject: Purchase Power Summary — January, 2015 n Energy Services Division (ESD) has completed the Purchase Power Summary for the month of January, 2015. ENERGY The RMLD's total metered load for the month was 61,599,102 kWh, which is a 1.19% decrease from the January, 2014 figures. Table 1 is a breakdown by source of the energy purchases. Table 1 Attachment 2 Amount of Cost of % of Total Total $ $ as a Resource Energy Energy Energy Costs % (kWh) ($ /Mwh) Millstone #3 3,713,872 $6.70 6.01% $24,893 0.72% Seabrook 5,889,780 $6.69 9.53% $39,380 1.14% Stonybrook Intermediate 171,123 $215.96 0.28% $36,956 1.07% Shell Energy 7,828,200 $70.72 12.67% $553,649 16.01% NextEra 9,462,000 $74.29 15.32% $702,923 20.32% NYPA 2,576,940 $4.92 4.17% $12,679 0.37% ISO Interchange 8,826,747 $87.02 14.29% $768,107 22.20% NEMA Congestion 0 $0.00 0.00% - $114,191 -3.30% Coop Resales 13,029 $226.74 0.02% $2,954 0.09% BP Energy 9,643,800 $47.73 15.61% $460,299 13.31% Summit Hydro /Collins /Pioneer 2,756,518 $73.95 4.46% $203,831 5.89% Braintree Watson Unit 121,521 $199.19 0.20% $24,206 0.70% Swift River Projects 2,261,267 $22.21 3.66% $225,502 6.52% Exelon 8,512,200 $60.86 13.78% $518,012 14.97% Stonybrook Peaking 0 $0.00 0.00% $0 0.00% Monthly Total 61,776,997 $55.99 100.00% $3,459,198 100.00% Attachment 2 Table 2 breaks down the ISO interchange between the DA LMP Settlement and the RT Net Energy for the month of January, 2015. Table 2 Amount Cost % of Total Resource of Energy of Energy Energy (kWh) ($ /Mwh) ISO DA LMP 9,955,363 81.01 16.11% Settlement RT Net Energy " - 1,128,617 33.97 -1.83% Settlement ISO Interchange 8,826,747 87.02 14.29% (subtotal) Independent System Operator Day -Ahead Locational Marginal Price Real Time Net Energy JANUARY 2015 ENERGY BY RESOURCE Swift River Projects, 3.7% Braintree Watson Unit, 0.2% Summit Hydro, 4.5% BP Energy, 15.6% Stonybrook Peaking, 0.0% #3, 6.0% Stonybrook Intermediate, 0.3% Energy, 12.7 NYPA, 4.2% S•s •fR. M1waa •S t.r h.se 5 ! ♦ T ♦ -.- l The RMLD hit a demand of 109,061 M, which occurred on January 8, at 6 pm. The RMLD's monthly UCAP requirement for January, 2015 was 209,812 Ms. 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 34.42 $170,356 11.07% Seabrook 7,919 39.88 $315,783 20.51% Stonybrook Peaking 24,981 2.01 $50,266 3.27% Stonybrook CC 42,925 7.76 $333,022 21.63% NYPA 4,019 4.19 $16,834 1.09% Hydro Quebec 0 0 $21,550 1.40% Nextera 60,000 5.65 $339,000 22.02% Braintree Watson Unit 10,520 10.77 $113,290 7.36% ISO -NE Supply Auction 54,498 3.29 $179,193 11.64% Total 209,812 $7.34 $1,539,294 100.00% Table 4 shows the dollar amounts for energy and capacity per source. Table 4 Cost of % of Amt of Energy Power Resource Energy Capacity Total cost Total Cost (kWh) ($ /kWh) Millstone #3 $24,893 $170,356 $195,250 3.91% 3,713,872 0.0526 Seabrook $39,380 $315,783 $355,162 7.11% 5,889,780 0.0603 Stonybrook Intermediate $36,956 $333,022 $369,978 7.40% 171,123 2.1621 Hydro Quebec $0 $21,550 $21,550 0.43% - 0.0000 Shell Energy $553,649 $0 $553,649 11.08% 7,828,200 0.0707 NextEra $702,923 $339,000 $1,041,923 20.84% 9,462,000 0.1101 * NYPA $12,679 $16,834 $29,512 0.59% 2,576,940 0.0115 ISO Interchange $768,107 $179,193 $947,300 18.95% 8,826,747 0.1073 Nema Congestion - $114,191 $0 - $114,191 -2.28% - 0.0000 BP Energy $460,299 $0 $460,299 9.21% 9,643,800 0.0477 Summit Hydro /Collins /Pioneer $203,831 $0 $203,831 4.08% 2,756,518 0.0739 Braintree Watson Unit $24,206 $113,290 $137,495 2.75% 121,521 1.1315 * Swift River Projects $225,502 $0 $225,502 4.51% 2,261,267 0.0997 Coop Resales $2,954 $0 $2,954 0.06% 13,029 0.2267 Exelon Energy $518,012 $0 $518,012 10.36% 8,512,200 0.0609 Stonybrook Peaking $0 $50,266 $50,266 1.01% - 0.0000 Monthly Total $3,459,198 $1,539,294 $4,998,493 100.00% 61,776,997 0.0809 * Renewable Resources 12.29% RENEWABLE ENERGY CERTIFICATES (RECs) Table 5 shows the amount of banked and projected RECs for the Swift River Hydro Projects through December 2014, as well as their estimated market value. In January 2015 the RMLD sold 8456 2014 RECs for $409,180. TRANSMISSION The RMLD's total transmission costs for the month of January, 2015 were $812,385. This is a decrease of 11.19% from the December transmission cost of $812,385. In January, 2014 the transmission costs were $989,607. Table 6 Current Month Table 5 Last Year Peak Demand (kW) 109,061 Swift River RECs Summary 112,204 Energy (kWh) 61,776,997 Period - July 2014 - January 2015 61,774,795 Energy ($) Banked Projected Total Est. Capacity ($) RECs RECs RECs Dollars Woronoco 0 1,872 1,872 $89,856 Pepperell 1,342 2,562 3,904 $187,392 Indian River 638 1,457 2,095 $100,560 Turners Falls 1,609 504 2,113 $0 RECs Sold 0 $0 Grand Total 3,589 6,395 9,984 $377,808 TRANSMISSION The RMLD's total transmission costs for the month of January, 2015 were $812,385. This is a decrease of 11.19% from the December transmission cost of $812,385. In January, 2014 the transmission costs were $989,607. Table 6 Current Month Last Month Last Year Peak Demand (kW) 109,061 109,529 112,204 Energy (kWh) 61,776,997 58,942,336 61,774,795 Energy ($) $3,459,198 $2,754,213 $3,161,945 Capacity ($) $1,539,294 $1,415,709 $1,365,300 Transmission($) $721,439 $812,385 $989,607 Total $5,719,932 $4,982,307 $5,516,852 Dt: February 25, 2015 To: RMLB, Coleen O'Brien, Jeanne Foti Fr: Bob Fournier Sj: January 31, 2015 Report The results for the first seven months ending January 31, 2015, for the fiscal year 2015 will be summarized in the following paragraphs. 1) Change in Net Assets: (Page 3A) *For the month of January, the net loss or the negative change in net assets was $196,863 decreasing the year to date net income to $2,855,653. The year to date budgeted net income was $2,097,231, resulting in net income being over budget by $758,422 or 36.1 %. Actual year to date fuel revenues exceeded fuel expenses by $965,650. 2) Revenues: (Page 3A) *Year to date base revenues were under budget by $231,391 or 1.7 %. Actual base revenues were $12.9 million compared to the budgeted amount of $13.1 million. 3) Expenses: (Page 12A) *Year to date purchased power base expense was over budget by $246,143 or 1.5 %. Actual purchased power base costs were 17.1 million and budgeted power base costs were $16.9 million. *Year to date operating and maintenance (0 &M) expenses combined were over budget by $5,327 or .06 %. Actual and budget O &M expenses were $8.3 million. *Depreciation expense and voluntary payments to the Towns were on budget. 4) Cash: (Page 9) *Operating Fund was at $11,519,798. * Capital Fund balance was at $5,825,309. * Rate Stabilization Fund was at $6,756,780. * Deferred Fuel Fund was at $5,098,344. * Energy Conservation Fund was at $523,143. 5) General Information: *Year to date kwh sales (Page 5) were 414,554,245 which is 3.27 million kwh or .8 %, behind last year's actual figure. Budget Variance: *Cumulatively, the five divisions were under budget by $20,398 or .16% Attachment 3 ASSETS CURRENT UNRESTRICTED CASH RESTRICTED CASH RESTRICTED 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 1/31/2015 PREVIOUS YEAR CURRENT YEAR (SCH A P.9) 10,941,912.04 11,522,798.06 (SCH A P.9) 16,727,989.33 21,412,555.78 (SCH A P.9) 850,000.00 1,292,906.26 (SCH B P.10) 6,203,587.62 8,526,102.90 (SCH B P.10) 1,432,221.97 2,427,520.14 1,484,913.45 1,490,441.14 37,640,624.41 46,672,324.28 (SCH C P.2) 31,379.32 26,993.75 (SCH C P.2) 69,863,386.54 69,512,012.08 69,894,765.86 69,539,005.83 107,535,390.27 116,211,330.11 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 Z' 5,862,730.00 6,948,038.36 713,375.92 839,254.91 399,624.15 565,058.48 52,294.21 211,120.34 7,028,024.28 8,563,472.09 2,885,367.8B 2,918,870.73 2,885,367.88 2,918,870.73 9,913,392.16 11,482,342.82 69,863,386.54 69,512,012.08 4,555,865.98 5,825,309.97 23,190,168.74 29,391,665.24 97,621,998,11 104,728,987.29 107,535,390.27 116,211,330.11 (2) TOWN OF READING, MASSACHUSETTS MUNICIPAL LIGHT DEPARTMENT NONCURRENT ASSET SCHEDULE 1/31/2015 SCHEDULE C PREVIOUS YEAR CURRENT YEAR SCHEDULE OF INVESTMENTS IN ASSOCIATED COMPANIES NEW ENGLAND HYDRO ELECTRIC 3,261.87 2,975.74 NEW ENGLAND HYDRO TRANSMISSION 28,117.45 24,018.01 TOTAL, INVESTMENTS IN ASSOCIATED COMPANIES 31,379.32 26,993.75 SCHEDULE OF CAPITAL ASSETS LAND 1,265,842.23 1,265,842.23 STRUCTURES AND IMPROVEMENTS 6,430,835.66 6,108,069.51 EQUIPMENT AND FURNISHINGS 12,719,213.58 12,423,666.11 INFRASTRUCTURE 49,447,495.07 49,714,434.23 TOTAL CAPITAL ASSETS, NET 69,863,386.54 69,512,012.08 TOTAL NONCURRENT ASSETS 69,894,765.86 69,539,005.83 (2) TOWN OF READING, MASSACHUSETTS MUNICIPAL LIGHT DEPARTMENT BUSINESS-TYPE PROPRIETARY FUND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS 1/31/2015 MONTH MONTH LAST YEAR CURRENT YEAR YTD 6 LAST YEAR CURRENT YEAR TO DATE TO DATE CHANGE OPERATING REVENUES: (SCH D P.11) BASE REVENUE 3,710,000.73 1,869,424.05 27,306,136.67 12,939,211,71 - 52.616 FUEL REVENUE 2,487,172.37 2,845,745.09 18,324,954.30 20,738,447.56 13.178 PURCHASED POWER CAPACITY 70,193.46 2,526,828.66 234,927.19 17,564,396.05 7376.538 FORFEITED DISCOUNTS 91,316.20 76,469.60 552,684.56 467,992.73 - 15.326 ENERGY CONSERVATION REVENUE 54,410.15 56,535.32 411,264.98 405,562.39 -1.399 GAW REVENUE 55,283.59 0.00 417,615.74 0.00 - 100.009 NYPA CREDIT (88,308.33) (100,190.60) (360,980.63) (482,453.42) 33.656 TOTAL OPERATING REVENUES 6,380,068.17 7,274,812.12 46,886,602.81 51,633,157.02 10.126 OPERATING EXPENSES: (SCH E P.12) PURCHASED POWER CAPACITY 1,365,299.61 1,541,650.35 10,253,099.08 9,870,582.68 -3.736 PURCHASED POWER TRANSMISSION 982,261.69 805,943.23 6,869,568.82 7,265,172.90 5.766 PURCHASED POWER FUEL 3,161,945.22 3,456,178.99 18,961,412.59 19,290,344.43 1.736 OPERATING 863,006.66 1,003,026.29 5,638,642.09 6,423,655.11 13.926 MAINTENANCE 276,902.81 208,813.65 1,669,338.60 1,920,847.36 15.076 DEPRECIATION 314,969.55 321,788.79 2,204,786.85 2,252,521.53 2.176 VOLUNTARY PAYMENTS TO TOWNS 116,666.67 118,000.00 815,183.67 816,754.00 0.198 TOTAL OPERATING EXPENSES 7,081,052.21 7,455,401.30 46,412,031.70 47,839,878.01 3.089 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 JANUARY (700,984.04) (180,589.18) 474,571.11 3,793,279.01 699.316 3,361.74 3,500.00 26,428.62 80,861.92 205.966 (191,.768.42) (194,405.26) (1,342,378.92) (1,360,836.76) 1.386 2,384.73 10,660.93 25,765.51 81,545.81 216.496 (251.19) (248.88) (2,937.10) (3,042.07) 3.576 5,447.43 164,218.44 123,370.10 263,845.22 113.866 (180,825.71) (16,274.77) (1,169,751.79) (937,625.88) - 19.846 (881,809.75) (196,863.95) (3) (695,180.68) 2,855,653.13 - 510.788 98,317,178.79 101,873,334.16 3.626 97,621,998.11 104 728 987.29 7.286 TOWN OF READING, MASSACHUSETTS MUNICIPAL LIGHT DEPARTMENT BUSINESS -TYPE PROPRIETARY FUND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS 1/31/2015 OPERATING REVENUES: (SCH F P.11B) BASE REVENUE FUEL REVENUE PURCHASED POWER CAPACITY FORFEITED DISCOUNTS ENERGY CONSERVATION REVENUE NYPA CREDIT TOTAL OPERATING REVENUES OPERATING EXPENSES: (SCH G P.12A) PURCHASED POWER CAPACITY PURCHASED POWER TRANSMISSION 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 JANUARY * ( ) = ACTUAL UNDER BUDGET ACTUAL BUDGET % YEAR TO DATE YEAR TO DATE VARIANCE* CHANGE 12,939,211.71 13,170,603.00 (231,391.29) -1.76% 20,738,447.56 22,268,444.00 (1,529,996.44) -6.87% 17,564,396.05 17,548,623.00 15,773.05 100.00% 467,992.73 671,510.00 (203,517.27) - 30.31% 405,562.39 417,825.00 (12,262.61) -2.93% (482.453.42) 5408,331.00) (74,122.42) 18.15% 51,633,157.02 53,668,674.00 (2,035,516.98) -3.79% 9,870,582.68 9,577,035.00 293,547.68 3.07% 7,265,172.90 7,312,577.00 (47,404.10) -0.65% 19,290,344.43 22,253,071.00 (2,962,726.57) - 13.31% 6,423,655.11 6,411,256.00 12,399.11 0.19% 1,920,847.36 1,927,919.00 (7,071.64) -0.37% 2,252,521.53 2,270,331.00 (17,809.47) -0.78% 816.754.00 826.000.00 (9,246.00) -1.12% 47,839,878.01 50,578,189.00 (2,738,310.99) -5.41% 3,793,279.01 3,090,485.00 702,794.01 22.74% 80,861.92 150,000.00 (69,138.08) - 46.09% (1,360,836.76) (1,360,835.00) (1.76) 0.00% 81,545.81 58,331.00 23,214.81 39.80% (3,042.07) (1,750.00) (1,292.07) 73.83% 263,845.22 161,000.00 102,845.22 63.88% (937,625.88) (993,254.00) 55,628.12 -5.60% 2,855,653.13 2,097,231.00 758,422.13 101,873,334.16 101,873,334.16 0.00 104,728,987.29 103,970,565.16 758,422.13 (3A) 36.16% 0.00% 0.73% 19 9 .7 TOWN OF READING, MASSACHUSETTS MUNICIPAL LIGHT DEPARTMENT RECONCILIATION OF CAPITAL FUNDS 1/31/2015 SOURCE OF CAPITAL FUNDS: DEPRECIATION FUND BALANCE 7/1/14 CONSTRUCTION FUND BALANCE 7/1/14 INTEREST ON DEPRECIATION FUND FY 15 DEPRECIATION TRANSFER FY 15 TOTAL SOURCE OF CAPITAL FUNDS USE OF CAPITAL FUNDS: LESS PAID ADDITIONS TO PLANT THRU JANUARY GENERAL LEDGER CAPITAL FUNDS BALANCE 1/31/15 (4) 4,130,584.59 1,000,000.00 12,632.66 2,252,521.53 7,395,738.78 1,570,428.81 5,825,309.97 TOWN OF READING, MASSACHUSETTS MUNICIPAL LIGHT DEPARTMENT SALES OF KILOWATT HOURS 1/31/2015 (5) MONTH MONTH LAST YEAR CURRENT YEAR YTD % SALES OF ELECTRICITY: LAST YEAR CURRENT YEAR TO DATE TO DATE CHANGE RESIDENTIAL SALES 23,543,268 23,519,829 159,621,466 155,521,685 -2.57% COMM. AND INDUSTRIAL SALES 29,157,811 31,327,972 240,358,620 240,458,635 0.04% PRIVATE STREET LIGHTING 76,611 79,972 522,817 553,396 5.85% TOTAL PRIVATE CONSUMERS 52,777,690 54,927,773 400,502,903 396,533,716 -0.99% MUNICIPAL SALES: STREET LIGHTING 240,064 242,710 1,678,350 1,699,775 1.28% MUNICIPAL BUILDINGS 833,573 877,249 5,555,240 5,622,101 1.20% TOTAL MUNICIPAL CONSUMERS 1,073,637 1,119,959 7,233,590 7,321,876 1.22% SALES FOR RESALE 248,102 248,384 2,033,042 2,020,077 -0.64% SCHOOL 1,171,117 1,407,377 8,054,809 8,678,576 7.74% TOTAL KILOWATT HOURS SOLD 55,270,546 57,703,493 417,824,344 414,554,245 -0.78% (5) TOWN OF READING, MASSACHUSETTS MUNICIPAL LIGHT DEPARTMENT KILOWATT HOURS SOLD BY TOWN (W 1/31/2015 TOTAL READING LYNNFIELD NO.READING WILMINGTON MONTH RESIDENTIAL 23,519,829 7,689,445 3,326,327 5,616,456 6,887,601 COMM & IND 31,327,972 3,934,121 255,393 4,735,884 22,402,574 PVT ST LIGHTS 79,972 13,418 1,524 24,882 40,148 PUB ST LIGHTS 242,710 81,549 32,769 42,685 85,707 MUNI BLDGS 877,249 267,192 166,602 129,442 314,013 SALES /RESALE 248,384 248,384 0 0 0 SCHOOL 1,407,377 431,908 272,403 262,560 440,506 TOTAL 57,703,493 12,666,017 4,055,018 10,811,909 30,170,549 YEAR TO DATE RESIDENTIAL 155,521,685 48,418,009 22,561,349 35,807,724 48,734,603 COMM & IND 240,458,635 29,586,953 1,890,375 37,036,415 171,944,892 PVT ST LIGHTS 553,396 93,610 10,668 173,708 275,410 PUB ST LIGHTS 1,699,775 571,190 229,526 298,750 600,309 MUNI BLDGS 5,622,101 1,423,815 1,179,468 1,005,993 2,012,825 SALES /RESALE 2,020,077 2,020,077 0 0 0 SCHOOL 8,678,576 2,943,174 1,819,853 1,384,200 2,531,349 TOTAL 414,554,245 85 056,828 27,691, 39 75,706,790 226,099,388 LAST YEAR TO DATE RESIDENTIAL 159,621,466 50,631,452 22,579,896 36,816,392 49,593,726 COMM & IND 240,358,620 29,771,228 1,968,350 37,235,744 171,383,298 PVT ST LIGHTS 522,817 91,903 9,740 157,092 264,082 PUB ST LIGHTS 1,678,350 564,734 227,500 293,407 592,709 (W MUNI BLDGS 5,555,240 1,442,815 1,109,454 1,015,956 1,987,015 SALES /RESALE 2,033,042 2,033,042 0 0 0 SCHOOL 8,054,809 2,883,359 1,837,664 972,440 2,361,346 TOTAL 417,824,344 87,418,533 27,732,604 76,491,031 226,182,176 KILOWATT HOURS SOLD TO TOTAL TOTAL READING LYNNFIELD NO.READING WILMINGTON MONTH RESIDENTIAL 40.76% 13.33% 5.76% 9.73% 11.94% COMM & IND 54.29% 6.82% 0.44% 8.21% 38.82% PVT ST LIGHTS 0.14% 0.02% 0.00% 0.04% 0.08% PUB ST LIGHTS 0.42% 0.14% 0.06% 0.07% 0.15% MUNI BLDGS 1.52% 0.46% 0.29% 0.22% 0.55% SALES /RESALE 0.43% 0.43% 0.00% 0.00% 0.00% SCHOOL 2.44% 0.75% 0.47% 0.46% 0.76% TOTAL 100.00% 21.95% 7.02% 18.73% 52.30% YEAR TO DATE RESIDENTIAL 37.52% 11.68% 5.44% 8.64% 11.76% COMM & IND 58.00% 7.14% 0.46% 8.93% 41.47% PVT ST LIGHTS 0.1316 0.02% 0.00% 0.04% 0.07% PUB ST LIGHTS 0.41% 0.14% 0.06% 0.07% 0.14% MUNI BLDGS 1.36% 0.34% 0.28% 0.24% 0.50% SALES /RESALE 0.49% 0.49% 0.00% 0.00% 0.00% SCHOOL 2.09% 0.71% 0.44% 0.33% 0.61% TOTAL 100.00% 20.52% 6.68% 18.25% 54.55% LAST YEAR TO DATE RESIDENTIAL 38.20% 12.12% 5.40% 8.81% 11.87% COMM & IND 57.53% 7.13% 0.47% 8.91% 41.02% PVT ST LIGHTS 0.12% 0.02% 0.00% 0.04% 0.06% PUB ST LIGHTS 0.40% 0.14% 0.05% 0.07% 0.14% MUNI BLDGS 1.331s 0.35% 0.27% 0.24% 0.47% SALES /RESALE 0.4916 0.49% 0.00% 0.00% 0.00% SCHOOL 1.93% 0.69% 0.44% 0.23% 0.57% TOTAL 100.00% 20.94% 6.63% 18.30% 54.13% (6) TOWN OF READING, MASSACHUSETTS MUNICIPAL LIGHT DEPARTMENT FORMULA INCOME 1/31/2015 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) 51,633,157.02 0.00 2,787.32 (47,839,878.01) (3,042.07) 3,793,024.26 LIA SALE OF KWH (P.S) KWH PURCHASED AVE BASE COST PER KWH AVE BASE SALE PER KWH AVE COST PER KWH AVE SALE PER KWH FUEL CHARGE REVENUE (P.3) LOAD FACTOR PE.OAD TOWN OF READING, MASSACHUSETTS MUNICIPAL LIGHT DEPARTMENT GENERAL STATISTICS 1/31/2015 MONTH OF JAN 2014 55,270,546 61,774,795 0.038002 0.067124 0.089187 0.112124 2,487,172.37 75.42% 112,204 MONTH OF % CHANGE YEAR THRU JAN 2015 2014. 2015 JAN 2014 JAN 2015 57,703,493 -1.42% -0.78% 417,824,344 414,554,245 61,776,997 -1.32% -4.46% 437,908,739 418,371,883 0.024955 3.55 % - 39.66% 0.039101 0.023593 0.032397 0.88% - 52.24% 0.065353 0.031212 0.080901 -1.96% - 15.41% 0.082401 0.069701 0.081714 -4.64% - 25.61% 0.109211 0.081238 2,845,745.09 - 13.31% 13.17% 18,324,954.30 20,738,447.56 77.60% 109,061 (8) TOWN OF READING, MASSACHUSETTS MUNICIPAL LIGHT DEPARTMENT SCHEDULE OF CASH AND INVESTMENTS 1/31/2015 UNRESTRICTED CASH CASH - OPERATING FUND CASH - PETTY CASH TOTAL UNRESTRICTED CASH RESTRICTED CASH CASH - DEPRECIATION FUND CASH - TOWN PAYMENT 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 TOTAL RESTRICTED CASH INVESTMENTS SICK LEAVE BUYBACK TOTAL CASH BALANCE (9) PREVIOUS YEAR 10,938,912.04 3,000.00 10,941,912.04 4,568,442.83 308,435.09 1,612,048.46 6,702,132.09 200,000.00 2,035,867.88 150,000.00 713,575.92 437,487.06 16,727,989.33 850,000.00 28,519,901.37 SCHEDULE A j CURRENT YEAR 11,519,798.06 3,000.00 11,522,798.06 5,825,309.97 312,405.25 5,098,344.67 6,756,780.52 200,000.00 1,707,316.51 150,000.00 839,254.91 523,143.95 21,412,555.78 1,292,906.26 34,228,260.10 1101 1� TOWN OF READING, MASSACHUSETTS MUNICIPAL LIGHT DEPARTMENT SCHEDULE OF ACCOUNTS RECEIVABLE 1/31/2015 PREVIOUS YEAR SCHEDULE OF ACCOUNTS RECEIVABLE RESIDENTIAL AND COMMERCIAL 2,390,003.10 ACCOUNTS RECEIVABLE - OTHER 81,174.01 ACCOUNTS RECEIVABLE - LIENS 37,169.47 ACCOUNTS RECEIVABLE - EMPLOYEE ADVANCES 892.14 SALES DISCOUNT LIABILITY (224,197.44) RESERVE FOR UNCOLLECTIBLE ACCOUNTS (239,476.16) TOTAL ACCOUNTS RECEIVABLE BILLED 2,045,565.12 UNBILLED ACCOUNTS RECEIVABLE 4,158,022.50 TOTAL ACCOUNTS RECEIVABLE, NET 6,203,587.62 SCHEDULE OF PREPAYMENTS PREPAID INSURANCE 1,376,413.77 PREPAYMENT PURCHASED POWER (437,058.23) PREPAYMENT PASNY 242,260.90 PREPAYMENT WATSON 236,081.83 PURCHASED POWER WORKING CAPITAL 14,523.70 TOTAL PREPAYMENT 1,432,221.97 ACCOUNTS RECEIVABLE AGING JANUARY 2015: RESIDENTIAL AND COMMERCIAL 3,182,778.67 LESS: SALES DISCOUNT LIABILITY (233,751.34) GENERAL LEDGER BALANCE 2,949,027.33 CURRENT 2,523,985.62 85.59% 30 DAYS 315,200.25 10.69`k 60 DAYS 61,037.37 2.07% 90 DAYS 9,215.60 0.31% OVER 90 DAYS 39,588.49 1.34% TOTAL 2,949,027.33 100.00% SCHEDULE B CURRENT YEAR 3,182,778.67 185,999.32 37,433.70 892.14 (233,751.34) (269,518.871 2,903,833.62 5,622,269.28 8,526,102.90 1,388,734.37 556,401.78 259,957.39 209,726.49 12,700.11 2,427,520.14 TOWN OF READING, MASSACHUSETTS MUNICIPAL LIGHT DEPARTMENT SCHEDULE OF OPERATING REVENUE 1/31/2015 SCHEDULE D MONTH MONTH LAST YEAR CURRENT YEAR YTD % SALES OF ELECTRICITY: LAST YEAR CURRENT YEAR TO DATE TO DATE CHANGE RESIDENTIAL SALES 2,890,566.06 2,224,111.00 19,487,125.62 14,826,171.91 - 23.92% COMM AND INDUSTRIAL SALES 3,027,825.03 2,257,329.78 24,222,617.63 17,294,119.99 - 28.60% PRIVATE STREET LIGHTING 5,768.87 9,549.01 38,765.85 66,126.49 70.58% TOTAL PRIVATE CONSUMERS 5,924,159.96 4,490,989.79 43,748,509.10 32,186,418.39 - 26.43% MUNICIPAL SALES: STREET LIGHTING 27,103.76 29,865.45 187,220.01 209,030.65 11.65% MUNICIPAL BUILDINGS 91,793.96 67,624.07 614,291.81 445,635.00 - 27.46% TOTAL MUNICIPAL CONSUMERS 97,489.52 801,511.82 654,665.65 - 18.32% 118,897.72 SALES FOR RESALE 28,240.80 21,078.97 229,803.05 172,862.46 - 24.78% SCHOOL 125,874.62 105,610.86 851,267.00 663,712.77 - 22.03% SUB -TOTAL 6,197,173.10 4,715,169.14 45,631,090.97 33,677,659.27 - 26.20% 13 FORFEITED DISCOUNTS 91,316.20 76,469.60 552,684.56 467,992.73 - 15.32% PURCHASED POWER CAPACITY 70,193.46 2,526,828.66 234,927.19 17,564,396.05 7376.53% ENERGY CONSERVATION - RESIDENTIAL 23,554.34 23,532.17 159,705.06 155,586.76 -2.58% ENERGY CONSERVATION - COMMERCIAL 30,855.81 33,003.15 251,559.92 249,975.63 -0.63% GAW REVENUE 55,283.59 0.00 417,615.74 0.00 - 100.00% NYPA CREDIT (88,308.33) (100,190.60) (360,980.63) (482,453.42) 33.65% TOTAL REVENUE 10.12% 51,633,157.02 46,886,602.81 7,274,812.12 6,380,068.17 TOWN OF READING, MASSACHUSETTS MUNICIPAL LIGHT DEPARTMENT SCHEDULE OF OPERATING REVENUE BY TOWN 1/31/2015 LAST YEAR TO DATE RESIDENTIAL TOTAL READING LYNNFIELD NO.READING WILMINGTON MONTH 54.43% 7.42% 0.74% 8.73% 37.54% RESIDENTIAL 2,224,111.00 730,057.37 312,435.31 529,406.71 652,211.61 INDUS /MUNI BLDG 2,324,953.85 337,657.22 34,687.75 371,058.95 1,581,549.93 PUB.ST.LIGHTS 29,865.45 10,014.23 4,024.08 5,272.05 10,555.09 PRV.ST.LIGHTS 9,549.01 1,571.38 185.16 3,080.19 4,712.28 CO -OP RESALE 21,078.97 21,078.97 0.00 0.00 0.00 SCHOOL 105,610.86 33,223.67 20,239.28 20,097.28 32,050.63 TOTAL 4,715,169.14 1,133,602.84 371,571.58 928,915.18 2,281,079.54 THIS YEAR TO DATE RESIDENTIAL 14,826,171.91 4,637,538.10 2,135,880.29 3,405,283.77 4,647,469.75 INDUS /MUNI BLDG 17,739,754.99 2,480,723.03 250,885.12 2,873,065.99 12,135,080.85 PUB.ST.LIGHTS 209,030.65 70,099.61 28,168.56 36,876.85 73,885.63 PRV.ST.LIGHTS 66,126.49 10,985.44 1,296.12 21,505.70 32,339.23 CO -OP RESALE 172,862.46 172,862.46 0.00 0.00 0.00 SCHOOL 663,712.77 227,966.60 137,732.49 108,174.40 189,839.28 TOTAL 33,677,659.27 7,600,175.24 2,553,962.56 6,444,906.72 17,078,614.75 LAST YEAR TO DATE RESIDENTIAL 19,487,125.62 6,209,263.78 2,742,397.42 4,494,522.29 6,040,942.13 INDUS /MUNI BLDG 24,836,909.44 3,383,964.02 338,426.72 3,984,142.57 17,130,376.13 PUB.ST.LIGHTS 187,220.01 60,853.47 24,024.38 33,256.28 69,085.88 PRV.ST.LIGHTS 38,765.85 6,743.84 707.32 12,057.48 19,257.21 CO -OP RESALE 229,803.05 229,803.05 0.00 0.00 0.00 SCHOOL 851,267.00 306,691.52 190,629.70 106,567.18 247,378.60 TOTAL 45,631,090.97 10,197,319.68 3,296,185.54 8,630,545.80 23,507,039.95 PERCENTAGE OF OPERATING INCOME TO TOTAL TOTAL READING LYNNFIELD NO.READING WILMINGTON MONTH RESIDENTIAL 47.17% 15.48% 6.63% 11.23% 13.83% INDUS /MUNI BLDG 49.31% 7.16% 0.74% 7.87% 33.54% PUB.ST.LIGHTS 0.63% 0.21% 0.09% 0.11% 0.22% PRV.ST.LIGHTS 0.20% 0.03% 0.00% 0.07% 0.10% CO -OP RESALE 0.45% 0.45% 0.00% 0.00% 0.00% SCHOOL 2.24% 0.70% 0.43% 0.43% 0.68% TOTAL 100.00% 24.04% 7.88% 19.70% 48.38% THIS YEAR TO DATE RESIDENTIAL 44.02% 13.77% 6.34 %. 10.11% 13.80% INDUS /MUNI BLDG 52.68% 7.37% 0.74% 8.53% 36.03% PUB.ST.LIGHTS 0.62% 0.21% 0.08% 0.11% 0.22% PRV.ST.LIGHTS 0.20% 0.03% 0.00% 0.06% 0.10% CO -OP RESALE 0.51% 0.51% 0.00% 0.00% 0.00% SCHOOL 1.97% 0.68% 0.41% 0.32% 0.56% TOTAL 100.00% 22.57% 7.58% 19.14% 50.71% LAST YEAR TO DATE RESIDENTIAL 42.73% 13.61% 6.01% 9.85% 13.26% INDUS /MUNI BLDG 54.43% 7.42% 0.74% 8.73% 37.54% IUB.ST.LIGHTS 0.40% 0.13% 0.05% 0.07% 0.15% RV. ST. LIGHTS 0.08% 0.01% 0.00% 0.03% 0.04% CO -OP RESALE 0.50% 0.50% 0.00% 0.00% 0.00% SCHOOL 1.86% 0.67% 0.42% 0.23% 0.54% TOTAL 100.00% 22.34% 7.22% 18.91% 51.53% (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 NYPA CREDIT TOTAL OPERATING REVENUES * ( ) = ACTUAL UNDER BUDGET TOWN OF READING, MASSACHUSETTS MUNICIPAL LIGHT DEPARTMENT BUDGETED REVENUE VARIANCE REPORT 1/31/2015 SCHEDULE F ACTUAL BUDGET % YEAR TO DATE YEAR TO DATE VARIANCE * CHANGE 6,969,343.57 6,890,231.00 79,112.57 1.15% 5,530,064.16 5,767,892.00 (237,827.84) -4.12% 136,228.95 205,530.00 (69,301.05) - 33.72% 70,362.64 80,762.00 (10,399.36) - 12.88% 233,212.39 226,188.00 7,024.39 3.11% 12,939,211.71 13,170,603.00 (231,391.29) -1.76% 20,738,447.56 22,268,444.00 (1,529,996.44) -6.87% 33,677,659.27 35,439,047.00 (1,761,387.73) -4.97% 467,992.73 671,510.00 (203,517.27) - 30.31% 17,564,396.05 17,548,623.00 15,773.05 100.00% 155,586.76 159,622.00 (4,035.24) -2.53% 249,975.63 258,203.00 (8,227.37) -3.19% (482,453.42) (408,331.00) (74,122.42) 18.15% 51,633,157.02 53,668,674.00 (2,035,516.98) -3.79% (11B) Ic OPERATION SUP AND ENGINEERING EXP STATION SUP LABOR AND MISC LINE MISC LABOR AND EXPENSE STATION LABOR AND EXPENSE STREET LIGHTING EXPENSE METER EXPENSE MISC DISTRIBUTION EXPENSE METER READING LABOR & EXPENSE ACCT & COLL LABOR & EXPENSE UNCOLLECTIBLE ACCOUNTS ENERGY AUDIT EXPENSE ADMIN & GEN SALARIES OFFICE SUPPLIES & EXPENSE OUTSIDE SERVICES PROPERTY INSURANCE INJURIES AND DAMAGES EMPLOYEES PENSIONS & BENEFITS MISC GENERAL EXPENSE RENT EXPENSE ENERGY CONSERVATION TOTAL OPERATION EXPENSES 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 40,891.03 TOWN OF READING, MASSACHUSETTS 298,055.94 309,364.06 3.79% 10,239.83 MUNICIPAL LIGHT DEPARTMENT 64,538.00 93,661.10 45.13% 104,572.60 SCHEDULE OF OPERATING EXPENSES 485,784.93 492,564.08 1.40% 39,766.62 1/31/2015 289,483.75 SCHEDULE 3.87% 6,906.53 7,347.04 43,509.39 E 25.51% 20,293.55 MONTH MONTH LAST YEAR CURRENT YEAR YTD $ OPERATION EXPENSES: LAST YEAR CURRENT YEAR TO DATE TO DATE CHANGE PURCHASED POWER CAPACITY 1,365,299.61 1,541,650.35 10,253,099.08 9,870,582.68 -3.73% PURCHASED POWER TRANSMISSION 982,261.69 805,943.23 6,869,568.82 7,265,172.90 5.76% TOTAL PURCHASED POWER 2,347,561.30 2,347,593.58 17,122,667.90 17,135,755.58 0.08% OPERATION SUP AND ENGINEERING EXP STATION SUP LABOR AND MISC LINE MISC LABOR AND EXPENSE STATION LABOR AND EXPENSE STREET LIGHTING EXPENSE METER EXPENSE MISC DISTRIBUTION EXPENSE METER READING LABOR & EXPENSE ACCT & COLL LABOR & EXPENSE UNCOLLECTIBLE ACCOUNTS ENERGY AUDIT EXPENSE ADMIN & GEN SALARIES OFFICE SUPPLIES & EXPENSE OUTSIDE SERVICES PROPERTY INSURANCE INJURIES AND DAMAGES EMPLOYEES PENSIONS & BENEFITS MISC GENERAL EXPENSE RENT EXPENSE ENERGY CONSERVATION TOTAL OPERATION EXPENSES 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 40,891.03 43,671.73 298,055.94 309,364.06 3.79% 10,239.83 16,426.47 64,538.00 93,661.10 45.13% 104,572.60 122,812.61 485,784.93 492,564.08 1.40% 39,766.62 46,128.61 289,483.75 300,699.20 3.87% 6,906.53 7,347.04 43,509.39 54,610.66 25.51% 20,293.55 19,992.92 124,167.60 110,806.86 - 10.76% 32,036.79 41,345.86 206,788.42 259,715.59 25.59% 1,505.38 1,857.25 16,742.36 10,574.12 - 36.84% 114,625.47 160,739.32 874,747.30 1,051,962.91 20.26% 10,500.00 10,000.00 73,500.00 70,000.00 -4.76% 25,837.91 35,221.03 212,529.80 237,222.29 11.62% 64,648.11 68,901.79 495,013.22 487,363.14 -1.55% 24,663.81 27,558.30 161,890.92 174,445.83 7.76% 51,730.30 28,395.44 260,247.00 239,243.82 -8.07% 21,558.27 31,070.39 201,114.26 210,252.92 4.54% 2,838.89 3,070.27 22,642.04 26,070.72 15.14% 236,738.23 247,934.19 1,295,814.23 1,757,985.52 35.67% 10,747.29 17,569.24 109,003.58 99,315.42 -8.89% 14,434.09 14,514.48 110,269.77 98,117.43 - 11.02% 28,471.96 58,469.35 292,799.58 339,679.44 16.01% 863,006.66 1,003 026.29 5,638,642.09 6,423 655 11 13.92% 227.08 227.08 1,589.58 1,589.58 0.00% 13,441.16 29,640.30 105,294.10 332,251.43 215.55% 142,129.76 127,359.96 941,448.98 1,039,748.23 10.44% 29,761.23 311.96 120,434.50 77,479.82 - 35.67% 1,420.78 0.00 87,218.31 60,065.12 0.00% 46.14 (8.06) (358.27) (92.54) - 74.17% 77,194.56 43,995.58 319,811.02 271,799.85 - 15.01% 867.67 0.00 11,288.34 0.00 - 100.00% 11,814.43 7,286.83 82,612.04 138,005.87 67.05% 276,902.81 208,813.65 1,669,338.60 15.07% 1,920,847.36 314,969.55 321,788.79 2,204,786.85 2,252,521.53 2.17% 3,161,945.22 3,456,178.99 18,961,412.59 19,290,344.43 1.73% 116,666.67 118,000.00 815,183.67 816,754.00 0.19% 7,455,401.30 47,839,878.01 3.08% 7,081,052.21 46,412,031.70 (12) TOWN OF READING, MASSACHUSETTS MUNICIPAL LIGHT DEPARTMENT BUDGETED OPERATING EXPENSE VARIANCE REPORT 1/31/2015 SCHEDULE G OPERATION EXPENSES: PURCHASED POWER CAPACITY PURCHASED POWER TRANSMISSION TOTAL PURCHASED POWER OPERATION SUP AND ENGINEERING EXP STATION SUP LABOR AND MISC LINE MISC LABOR AND EXPENSE STATION LABOR AND EXPENSE STREET LIGHTING EXPENSE METER EXPENSE MISC DISTRIBUTION EXPENSE METER READING LABOR & EXPENSE ACCT & COLL LABOR & EXPENSE UNCOLLECTIBLE ACCOUNTS ENERGY AUDIT EXPENSE ADMIN & GEN SALARIES OFFICE SUPPLIES & EXPENSE OUTSIDE SERVICES PROPERTY INSURANCE INJURIES AND DAMAGES EMPLOYEES PENSIONS & BENEFITS MISC GENERAL EXPENSE RENT EXPENSE ENERGY CONSERVATION TOTAL OPERATION EXPENSES MAINTENANCE EXPENSES: MAINT OF TRANSMISSION PLANT MAINT OF STRUCT AND EQUIPMENT 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 * ( ) = ACTUAL UNDER BUDGET ACTUAL BUDGET % YEAR TO DATE YEAR TO DATE VARIANCE * CHANGE 9,870,582.68 9,577,035.00 293,547.68 3.07% 7,265,172.90 7,312,577.00 (47,404.10) -0.65% 17,135,755.58 16,889,612.00 246,143.58 1.46% 309,364.06 340,379.00 (31,014.94) -9.11% 93,661.10 62,083.00 31,578.10 50.86% 492,564.08 391,744.00 100,820.08 25.74% 300,699.20 232,832.00 67,867.20 29.15% 54,610.66 48,499.00 6,111.66 12.60% 110,806.86 137,030.00 (26,223.14) - 19.14% 259,715.59 228,941.00 30,774.59 13.44% 10,574.12 18,019.00 (7,444.88) - 41.32% 1,051,962.91 999,160.00 52,802.91 5.28% 70,000.00 70,000.00 0.00 0.00% 237,222.29 284,688.00 (47,465.71) - 16.67% 487,363.14 485,591.00 1,772.14 0.36% 174,445.83 175,700.00 (1,254.17) -0.71% 239,243.82 219,695.00 19,548.82 8.90% 210,252.92 264,488.00 (54,235.08) - 20.51% 26,070.72 28,866.00 (2,795.28) -9.68% 1,757,985.52 1,667,606.00 90,379.52 5.42% 99,315.42 179,631.00 (80,315.58) - 44.71% 98,117.43 123,669.00 (25,551.57) - 20.66% 339,679.44 452,635.00 (112,955.56) - 24.96% 6,423,655.11 6,411,256.00 12,399.11 0.19% 1,589.58 1,750.00 (160.42) -9.17% 332,251.43 281,352.00 50,899.43 18.09% 1,039,748.23 975,373.00 64,375.23 6.60% 77,479.82 76,259.00 1,220.82 1.60% 60,065.12 117,000.00 (56,934.88) - 48.66% (92.54) 5,695.00 (5,787.54) - 101.62% 271,799.85 338,275.00 (66,475.15) - 19.65% 0.00 33,132.00 (33,132.00) - 100.00% 138,005.87 99,083.00 38,922.87 39.28% 1,920,847.36 1,927,919.00 (7,071.64) -0.37% 2,252,521.53 2,270,331.00 (17,809.47) -0.78% 19,290,344.43 22,253,071.00 (2,962,726.57) - 13.31% 816,754.00 826,000.00 (9,246.00) 47,839,878.01 50,578,189.00 (2,738,310.99) (12A) -1.12% -5.41% MAINTENANCE.EXPENSES: MAINT OF TRANSMISSION PLANT TOWN OF READING, MASSACHUSETTS 3,000.00 1,589.58 1,410.42 MUNICIPAL LIGHT DEPARTMENT MAINT OF STRUCT AND EQUIPMT HJ 484,026.00 BUDGETED OPERATING EXPENSE VARIANCE REPORT 31.36% MAINT OF LINES - OH HJ 1,675,794.00 1/31/2015 636,045.77 37.95% MAINT OF LINES - UG HJ RESPONSIBLE 77,479.82 53,214.18 REMAINING MAINT OF LINE TRANSFORMERS HJ SENIOR 2015 ACTUAL BUDGET REMAINING OPERATION EXPENSES: MANAGER ANNUAL BUDGET YEAR TO DATE BALANCE BUDGET % PURCHASED POWER CAPACITY JP 16,332,282.00 9,870,582.68 6,461,699.32 39.56% PURCHASED POWER TRANSMISSION JP 12,556,732.00 7,265,172.90 5,291,559.10 42.14% TOTAL PURCHASED POWER 170,180.00 28,889,014.00 17,135,755.58 11,753,258.42 40.68% 3,240,260.00 OPERATION SUP AND ENGINEERING EXP HJ 583,668.00 309,364.06 274,303.94 47.00% STATION SUP LABOR AND MISC HJ 108,848.00 93,661.10 15,186.90 13.95% LINE MISC LABOR AND EXPENSE HJ 657,259.00 492,564.08 164,694.92 25.06% STATION LABOR AND EXPENSE HJ 398,849.00 300,699.20 98,149.80 24.61% STREET LIGHTING EXPENSE HJ 82,907.00 54,610.66 28,296.34 34.13% METER EXPENSE HJ 247,938.00 110,806.86 137,131.14 55.31% MISC DISTRIBUTION EXPENSE HJ 402,885.00 259,715.59 143,169.41 35.54% METER READING LABOR & EXPENSE HJ 30,922.00 10,574.12 20,347.88 65.80% ACCT & COLL LABOR & EXPENSE RF 1,705,333.00 1,051,962.91 653,370.09 38.31% UNCOLLECTIBLE ACCOUNTS RF 120,000.00 70,000.00 50,000.00 41.67% ENERGY AUDIT EXPENSE JP 488,284.00 237,222.29 251,061.71 51.42% ADMIN & GEN SALARIES CO 842,170.00 487,363.14 354,806.86 42.13% OFFICE SUPPLIES & EXPENSE CO 301,000.00 174,445.83 126,554.17 42.04% OUTSIDE SERVICES CO 351,650.00 239,243.82 112,406.18 31.97% PROPERTY INSURANCE HJ 453,200.00 210,252.92 242,947.08 53.61% INJURIES AND DAMAGES HJ 49,059.00 26,070.72 22,988.28 46.86% EMPLOYEES PENSIONS & BENEFITS HJ 2,746,619.00 1,757,985.52 988,633.48 35.99% MISC GENERAL EXPENSE CO 240,727.00 99,315.42 141,411.58 58.74% RENT EXPENSE HJ 212,000.00 98,117.43 113,882.57 53.72% 4GY CONSERVATION JP 778,812.00 339,679.44 439,132.56 56.38% OPERATION EXPENSES 10,802,130.00 6,423,655.11 4,378,474.89 40.53% MAINTENANCE.EXPENSES: MAINT OF TRANSMISSION PLANT HJ 3,000.00 1,589.58 1,410.42 47.01% MAINT OF STRUCT AND EQUIPMT HJ 484,026.00 332,251.43 151,774.57 31.36% MAINT OF LINES - OH HJ 1,675,794.00 1,039,748.23 636,045.77 37.95% MAINT OF LINES - UG HJ 130,694.00 77,479.82 53,214.18 40.72% MAINT OF LINE TRANSFORMERS HJ 156,000.00 60,065.12 95,934.88 61.50% MAINT OF ST LT & SIG SYSTEM HJ 9,745.00 (92.54) 9,837.54 100.95% MAINT OF GARAGE AND STOCKROOM HJ 567,531.00 271,799.85 295,731.15 52.11% MAINT OF METERS HJ 43,290.00 0.00 43,290.00 100.00% MAINT OF GEN PLANT RF 170,180.00 138,005.87 32,174.13 18.91% TOTAL MAINTENANCE EXPENSES 3,240,260.00 1,920,847.36 1,319,412.64 40.72% DEPRECIATION EXPENSE RF 3,892,000.00 2,252,521.53 1,639,478.47 42.12% PURCHASED POWER FUEL EXPENSE JP 36,249,653.00 19,290,344.43 16,959,308.57 46.78% VOLUNTARY PAYMENTS TO TOWNS RF 1,416,000.00 816,754.00 599,246.00 42.32% TOTAL OPERATING EXPENSES 84,489,057.00 47,839,878.01 36,649,178.99 43.38% (12a) TOWN OF READING, MASSACHUSETTS MUNICIPAL LIGHT DEPARTMENT PROFESSIONAL SERVICES 01/31/2015 PROFESSIONAL SERVICES BY PROJECT ITEM 1 RMLD AND PENSION TRUST AUDIT FEES 2 LEGAL -FERC /ISO /POWER /OTHER 3 NERC COMPLIANCE AND AUDIT 4 LEGAL 5 LEGAL- GENERAL 6 LEGAL SERVICES 7 SURVEY RIGHT OF WAY/ ENVIRONMENTAL 8 INSURANCE CONSULTANT /OTHER TOTAL PROFESSIONAL SERVICES BY VENDOR MELANSON HEATH & COMPANY PLM ELECTRIC POWER COMPANY RUBIN AND RUDMAN UTILTIY SERVICES INC. CHOATE HALL & STEWART WILLIAM F. CROWLEY- ATTORNEY HUDSON RIVER ENERGY GROUP STONE CONSULTING TRI COUNTY APPRAISAL OF SOUTH FLORIDA DUNCAN & ALLEN TOTAL DEPARTMENT ACTUAL BUDGET VARIANCE ACCOUNTING 33,582.24 35,000.00 (1,417.76) INTEGRATED RESOURCES 82,303.00 80,675.00 1,628.00 E & 0 9,340.00 6,125.00 3,215.00 ENGINEERING 6,844.50 7,875.00 (1,030.50) GM 89,979.25 30,919.00 59,060.25 HR 17,194.83 37,331.00 (20,136.17) BLDG. MAINT. 0.00 6,020.00 (6,020.00) GEN. BENEFIT 0.00 15,750.00 (15,750.00) 239,243.82 219,695.00 19,548.82 (13) ACTUAL 29,920.00 9,969.50 155,030.44 9,340.00 9,184.08 2,477.24 2,925.62 1,000.00 525.00 18,871.94 ZJ`#,Z43.tlZ ,Lq- m RMLD DEFERRED FUEL CASH RESERVE ANALYSIS 01/31/15 (14) GROSS MONTHLY TOTAL DATE CHARGES REVENUES NYPA CREDIT DEFERRED DEFERRED Jun -14 4,132,694.96 Jul -14 3,287,589.94 3,782,699.41 (35,898.34) 459,211.13 4,591,906.09 Aug -14 2,768,364.01 3,844,854.74 (47,884.92) 1,028,605.81 5,620,511.90 Sep -14 2,358,565.60 2,758,999.30 (73,836.15) 326,597.55 5,947,109.45 Oct -14 2,290,434.18 2,425,374.16 (74,545.03) 60,394.95 6,007,504.40 Nov -14 2,374,999.11 2,418,013.33 (68,098.89) (25,084.67) 5,982,419.73 Dec -14 2,754,212.60 2,662,761.53 (81,999.49) (173,450.56) 5,808,969.17 Jan -15 3,456,178.99 2,845,745.09 (100,190.60) (710,624.50) 5,098,344.67 (14) DIVISION BUSINESS DIVISION INTEGRATED RESOURCES AND PLANNING ENGINEERING AND OPERATIONS FACILITY GENERAL MANAGER SUB -TOTAL RMLD BUDGET VARIANCE REPORT FOR PERIOD ENDING JANUARY 31, 2015 ACTUAL BUDGET VARIANCE 5,917,125 5,848,385 68,740 659,205 817,999 (158,794) 3,029,823 2,868,556 161,267 2,688,576 2,772,043 (83,467) 482,926 491,070 (8,144) TOTAL 49,203,755 51,940,736 12,777,655 12,798,053 (20,398) CHANGE 1.18$ - 19.41$ 5.62$ -3.01$ -1.66$ -0.16$ PURCHASED POWER CAPACITY 9,870,583 9,577,035 293,548 3.07$ PURCHASED POWER TRANSMISSION 7,265,173 7,312,577 (47,404) -0.65$ PURCHASED POWER FUEL 19,290,344 22,253,071 (2,962,727) - 13.31$ TOTAL 49,203,755 51,940,736 (2,736,981) -5.27$ (15) 9 n READING MUNICIPAL LIGHT DEPARTMENT FY 15 CAPITAL BUDGET VARIANCE REPORT FOR PERIOD ENDING JANUARY 31, 2015 ' completed project ACTUAL COST YTD ANNUAL REMAINING PROJ DESCRIPTION TOWN JAN ADDITIONS BUDGET BALANCE CONSTRUCTION: 101 5W9 Reconductoring - Ballardvale Area W 9,862 253,000 243,138 102 Pole Line Upgrade Lowell Street W 17,069 60,697 173,000 112,304 104 Upgrade Old Lynnfield Center URDs (Cook's Farm) LC 26,847 217,000 190,153 105 4W5 - 4W6 Tie R 70,000 70,000 106 URD Upgrades ALL 48,109 319,000 270,891 107 Step -down Area Upgrades ALL 2,803 30,150 203,000 172,850 212 Force Account West Street R 224,000 224,000 SUB -TOTAL 19,871 175,665 1,459,000 1,283,335 STATION UPGRADES: 108 Relay Replacement Project - Gaw Station #4 R 50,000 50,000 ' 110 Station 3 - Replacement of Service Cutouts NR 2,192 130 Remote Terminal Unit (RTU) Replacement- Station 3 NR 85,000 85,000 SUB -TOTAL - 2,192 135,000 135,000 NEW CUSTOMER SERVICES: 112 New Service Installations (Commercial / Industrial) ALL 12,465 57,000 44,535 113 New Service Installations (Residential) ALL 10,208 87,874 260,000 172,126 SUB -TOTAL 10,208 100,339 317,000 216,661 ROUTINE CONSTRUCTION: 114 Routine Construction ALL 101,357 1,081,740 947,000 (134,740) SPECIAL PROJECTS / CAPITAL PURCHASES: 103 Distribution Protection and Automation ALL 69,000 69,000 116 Transformers and Capacitors ALL 444,000 444,000 117 Meter Purchases (Including "500 Club ") ALL 55,171 127,000 71,829 122 Engineering Analysis Software and Data Conversion ALL 55,000 55,000 125 GIS ALL 150,000 150,000 126 Communication Equipment (Fiber Optic) ALL 30,000 30,000 ' 131 LED Street Light Pilot Program ALL 26,250 37,000 10,751 132 Outage Management Software and Integration ALL 85,000 85,000 133 Predictive Asset Management Program ALL 80,000 80,000 134 Substation Test Equipment ALL 121,000 121,000 135 Arc Flash Study ALL 35,000 35,000 137 SCADA System Upgrade - Hardware ALL 20,332 63,000 42,668 SUB -TOTAL 101,753 1,296,000 1,194,248 OTHER CAPITAL PROJECTS: 118 Rolling Stock Replacement ALL 434,000 434,000 119 Security Upgrades All Sites ALL 5,012 6,470 61,000 54,530 120 Great Plains / Cogsdale Upgrade ALL 32,500 350,000 317,500 121 HVAC System Upgrade - 230 Ash Street R 10,900 399,000 388,100 123 Oil Containment Facility Construction LC 11,168 80,000 68,832 127 Hardware Upgrades ALL 19,387 102,000 82,613 128 Software and Licensing ALL 28,316 122,000 93,684 129 Master Facilities Site Plan R 50,000 50,000 136 Organizational / Reliability Studies ALL 100,000 100,000 SUB -TOTAL 5,012 106,741 1,698,000 1,589,259 Attachment 4 TOTAL CAPITAL BUDGET $ 136,449 $ 1,570,429 $ 5,852,000 $ 4,283,763 ' completed project READING MUNICIPAL LIGHT DEPARTMENT Engineering and Operations Monthly Report January 2015 CAPITAL IMPROVEMENTS Special Proiects /Capital Purchases: February 20, 2015 Complete FY14 -15 Construction Projects: Status Month YTD Pole Line Upgrade- Lowell Street, Wilmington 102 Engineering plans completed. Construction has begun 15% $17,069 $60,696 (as of 1/14/15). 107 Step -down Area Upgrades — All Towns: On- $2,803 $30,149 Vine Street Area, Reading going New Customer Service Connections: 112 Service Installations — Commercial /Industrial: going n/a $12,465 Service Installations — Residential: 113 This item includes new or upgraded overhead and going $10,208 $87,874 underground services. Special Proiects /Capital Purchases: February 20, 2015 Routine Construction: Jan YTD Pole Setting/Transfers 45,929 252,765 Overhead/Underground 34,196 317,667 Projects Assigned as Required • Analog Devices, Wilmington (charging station 480 218,813 Pole Damage /Knockdowns • Work was done to repair or replace three (3) damaged poles. 1,526 28,849 Station Group 24,165 Hazmat/Oil Spills 3,831 Porcelain Cutout Replacement Program 278 5,068 Lighting Street Light Connections 1,631 12,681 Storm Trouble 1,071 33,597 Underground Subdivisions new construction 44,055 Animal Guard Installation 423 5,812 Miscellaneous Capital Costs 15,823 134,437 TOTAL: $ 101.357 $ 1081740 PI February 20, 2015 MAINTENANCE PROGRAMS Aged /Overloaded Transformer Replacement through 12/31/14 Padmount: Single- Phase: 11.36% replaced (of those over 20 years old) Three - Phase: 6.41% replaced (of those over 20 years old) Overhead: Single- Phase: 8.62% replaced (of those over 20 years old) Three - Phase: 3.33% replaced (of those over 20 years old) Pole Testing System -wide (600 -1,000 poles /year) Year -one inspection complete: 645 poles tested (-10 %) • 390 silver tag (PASSED) • 233 red tag (FAILED): 21 have been replaced (as of 2120115) • 22 double red tag (CONDEMNED): 22 have been replaced 17 of 43 transfers have been completed (as of 2/20/15) 13.8kV /35kV Feeders - Quarterly Inspections 5W8, 5W9, 5W4, 5W5, 4W7, 4 W23, 3W8, 3W18, 3W6, 3W13, 3W5, 3W15, 4W5, 4W6, 4W13, 4W10, 4W12, 4W16 Miscellaneous branches and vines were found and removed. Manhole Inspections Pending. Porcelain Cutout Replacements (with Polymer) As of January 2015, there are 314 remaining porcelain cutouts to be replaced. 88% complete. Substations: Infared Scanning (Monthly) Station 3 Scanning complete through January - no hot spots found Station 4 Scanning complete through January - no hot spots found Station 5 Scanning complete through January - no hot spots found Substation Maintenance Program • Inspection of all three stations by UPG in progress. 95% complete February 20, 2015 SYSTEM RELIABILITY Key industry standard metrics have been identified to enable the RMLD to measure and track system reliability. SAIDI (System Average Interruption Duration Index) is defined as the average interruption duration (in minutes) for customers served by the utility system during a specific time period. SAIDI = the sum of all customer interruption durations within the specified time frame _ by the average number of customers served during that period. SAIDI 2010 -2015 100.00 90.00 80.00 85.75 � 2010 70.00 � 2011 60.00 t -- — 6235 2012 50.00 �- ._ _ __ -_ � 2013 40.00 30.00 - ._ - � 2014 20.00 i � 2015 YTD 10.00 0.11 0.00 Region Average _ 2010-2011-2012--2013 2014-2015 National Average Average SAIDI SAIFI (System Average Interruption Frequency) is defined as the average number of instances a customer on the utility system will experience an interruption during a specific time period. 0.90 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 SAIFI = the total number of customer interruptions _ average number of customers served during that period. SAIFI 2010 -2015 0.83 0.55 2010- 2011 - 2012 - 2013 - 2014 -2015 Average SAM X2010 � 2011 � 2012 X2013 X2014 � 2015 YTD Region Average National Average February 20, 2015 4 C7 PE CAIDI (Customer Average Interruption Duration Index) is defined as the average duration (in minutes) of an interruption experienced by customers during a specific time frame. CAIDI = the sum of all customer interruption durations during that time period _ the number of customers that experienced one or more interruptions during that time period. 120.00 100.00 80.00 60.00 40.00 20.00 CAIDI 2010 -2015 0.00 + - -- —T 2010 -2011- 2012 - 2013 - 2014 -2015 Average CAIDI 105.77 � 2010 83.00 r 2011 2012 � 2013 � 2014 � 2015 YTD Region Average National Average This matric reflects the average customer experience (minutes of duration) during an outage. Note: Since SAIDI, SAIFI and CAIDI are sustained interruption indices; only outages lasting longer than one minute are included in the calculations. February 20, 2015 5 Outages Causes Calendar YTD (from eReliability website) January 2015 Unknown Weather 7 10 3% Vehicle Accident 5% 9 4% Wildlife 55 24% Utility Human Error 1 0% Natural 1 0% Outage Cause Count Tree 2' Total 4 Outage Causes Annual Average 2010 -2015 Equipment 83 36% ■ Tree Equipment Wildlife Vehicle Accident Weather a- Unknown Utility Human Error ■ Natural February 20, 2015 6 Jeanne FoU m: Jeanne Foti '�Wnt: Thursday, February 19, 2015 9:27 AM To: RMLD Board Members Group Subject: Account Payable Warrant and Payroll Good morning. In an effort to save paper, the following timeframes had no Account Payable and Payroll questions. Account Payable Warrant — No Questions January 23, January 30, February 6 and February 13. Payroll — No Questions January 26 and February 9. This e -mail will be printed for the Board Book for the RMLD Board meeting on February 26, 2015. (W Jeanne 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. Jeanne Foti From: Coleen O'Brien Sent: Thursday, February 26, 2015 9:39 AM To: RMLD Board Members Group Cc: Jeanne Foti Subject: ACCOUNTS PAYABLE QUESTIONS Categories: Blue Category Good morning: Chairman Talbot had provided me these questions based on reviewing the AP Warrant. 1. Can the RMLD check to see if they can garner abetter pricing for long distance landline telephone service. It is my understanding that the town and the RMLD share a Federal ID number and therefore there may be certain limitations to RMLD having its own separate long distance plan. We will be discussing how the RMLD can reduce its long distance calling costs with both Verizon as well as the town. I can keep the Board apprised of the progress on this analysis. The RMLD has three year contracts for the single - purpose dispatch radios and mobile phones that have push - to -talk, can these be combined. The three radio contracts cover the entire radio system, repeaters, dispatch radios, and maintenance. The primary function of the radio system is to provide a required reliable and dedicated frequency communication for electric circuit and substation switching. Radio coverage, unlike cell phone coverage, is critical when vendors submit bids for the system; with demonstrated capability for 100% coverage through adequate repeaters within the entire service territory. A cell phone system can be utilized as the back -up to a radio system for limited switching, only if a push to talk group feature can be enabled without delay in transmitting the command, without dead zones, and have sufficient group capacity for the number of employees /trucks who may be assigned to the switching order. The plan was to eliminate the older flip phones with push to talk smart phones to combine a number of other smart features; however the smart phones still have problems with the push to talk application including delay and battery drain. The RMLD continues to evaluate efficiencies in communication systems to ensure proper electric system operations for the safety of the employees and the system. 3. RMLD pays for Internet service, however, owns its own Internet - connected fiber infrastructure. Can the RMLD bring Internet service in -house and provide this to other Town departments in order for both entities to save money. As part of the Organizational and Reliability Studies, maximizing the use of RMLD's fiber internally to enhance operation and reliability of its electric system and communication with its electric customers is being evaluated (Demand Response, Outage Management System, etc.). 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