HomeMy WebLinkAbout2016-04-27 RMLD Citizens Advisory Board Minuteswa Or REQ Town of Reading Meeting Minutes �EtftVED TOWN CLERK pP READING. MASS. Board - Committee - commission - council: RMLD Citizens Advisory Board 1616 NOV -1 A 4 18 Date: 2016-04-27 Time: 6:30 PM Building: Reading Municipal Light Building Location: Winfred Spurr Audio Visual Room Address: 230 Ash Street Purpose: General Business Session: General Session Attendees: Members - Present: Mr. George Hooper, Chair (Wilmington); Mr. David Nelson, Vice Chair (Lynnfield); Mr. David Mancuso, Secretary (Reading); Mr. Mark Chrisos (North Reading); Mr. Dennis Kelley (Wilmington) Members - Not Present: Others Present: Mr. Thomas O'Rourke, Board of Commissioners Mr. Chris Pollan, Rubin and Rudman, LLP Ms. Coleen O'Brien, Mr. Robert Fournier, Ms. Wendy Markiewicz, Mr. Paul McGonagle, Ms. ]ane Parenteau, Ms. Kathleen Rybak Minutes Respectfully Submitted By: Mr. George Hooper Chair Topics of Discussion: I. Call Meeting to Order - G. Hooper, Chair Chair Hooper called the meeting of the Citizens' Advisory Board to order at 6:30 pm and noted that the meeting was being audio recorded. 2. FY17 Capital Budget - C. O'Brien General Manager Materials: FY2017 Capital Budget, CAB & RMLD Board Presentation Slides Ms. O'Brien began the FY17 Capital Budget presentation with an overview of the Capital Improvements spreadsheet and the changes that have been included for FY17 (addition of Total Estimated Project Cost and Projected Project Variance columns). Ms. O'Brien then provided an update on the status of the major FY16 Capital projects (Slide 3) Including a comparison of budget to actual (Slide 4 and 5). Projects not completed in FY16 are either rolled Into FY17 or have been put on hold. The group discussed the economic development initiatives in Reading, which may have an impact on the Ash Street campus. The Master Facilities Site plan and any major renovations to the buildings are on hold pending the outcome of the Town discussions. Ms. O'Brien then provided a brief overview of the major capital projects planned for FY17. Slide 8 provides a status update for the Distributor Generator. The project budget has increased from $2.164m to $2.720m to accommodate an option to increase the unit from 2.0 to 2.5 megawatts and to include the cost to bring gas to the site. Staff reiterated that this project is a pilot. For the long-term, we will be evaluating all available options (such as battery storage) to shave the peak. Page 1 1 Ms. O'Brien concluded the presentation with a review of the projected project variances and the Plant Values and Depreciation fund balances. 3. Proposed Rate Adjustment - C. O'Brien, General Manager and J. Parenteau, Director of Integrated Resources (this Agenda item was taken out of order) Materials: FY2017 Proposed Base Rate Increase spreadsheet; Rate Schedules MDPU#259 - 267. Ms. Parenteau provided an overview of the proposed rate increase. In FY36, RMLD projected a 1% decrease in sales. For FY16 year-to-date (through February), sales are down 2.5%. In FY17, capacity costs are estimated to be increasing by $2m, transmission approximately $800k, and energy cost should be flat. As a result of declining sales and the anticipated increases in power supply costs, RMLD is proposing a rate Increase of between 5-7% in order to achieve the FY17 budgeted Operating Revenue of $25.5m. Ms. Parenteau reviewed Slide 9 which outlines the impact of the proposed rate increase on the various classes of customers (based on monthly usage assumptions). Ms. Parenteau noted that staff met with town administrators and selectmen from the four towns earlier this year, and at that time we had projected a 7-9% increase. The group discussed the plan to communicate the new rates (including the Terms and Conditions) to commercial and residential customers, and the pros and cons of including rate comparisons to IOU's and other municipals in our communication to customers. 4. Revised Terms and Conditions - C. O'Brien, General Manager Materials: Draft General Terms and Conditions for Electric Service Ms. O'Brien stated that RMLD is working on a service requirements handbook, which is intended as a reference tool for customers, vendors, electricians and employees. The handbook will Include the revised Terms and Conditions and will be presented to the CAB at an upcoming meeting. Ms. O'Brien introduced Attorney Chris Pollart from Rubin and Rudman to review the proposed changes to the Terms and Conditions. Mr. Pollart noted that the Terms and Conditions is the governing document between RMLD and Its customers. The draft has been restructured and reformatted to comply with current regulatory and legal requirements. The rights and responsibilities of the RMLD and its customers have been clarified. Mr. Pollart highlighted some of the changes: • Customer fees have been removed and will be included as a schedule in the service requirements handbook. • Net metering provisions have been eliminated from the General Terms and Conditions; RMLD has separate Net Metering Terms and Conditions. • Clarification that the Terms and Conditions are effective when filed with the DPU. Previously, they stated that they were not effective with the customer until service commenced. • A provision that prohibits customers from purchasing power from a third party in order to protect RMLD's exclusive franchise service territory. • Additional provisions that address service to border customers. • Additional language relative to security deposits. • More comprehensive provisions as to when RMLD is required to provide service. • Clarification of RMLD's right to refuse a new service. • Language regarding RMLD's right to utilize a Cromwell waiver. • A new section with provisions that address new services and imposes a requirement on customers to maintain their wiring in good condition. • Clarified that RMLD is only required to provide an existing type of service. Page 1 2 r ' • Added provisions that require the customer to provide space for the RMLD meter and equipment, and prohibits customers from hindering access to meters and equipment. • Information regarding the duty of the customer to protect sensitive appliances and computers. Legally, RMLD's responsibility ends at the meter. If approved by the Board, the Terms and Conditions will be filed with the DPU as part of the rates. Once filed, the Terms and Conditions take the effect of law. Chair Hooper asked for motions relative to the Capital Budget, Operating Budget and Proposed Rate Changes. Mr. Nelson made a motion that the Citizens' Advisory Board recommend to the RMLD Board of Commissioners the Fiscal Year 2017 Capital Budget dated March 31, 2016, In the amount of $9,406,217 as presented. Any significant changes are to be submitted to the CAB for review and recommendation, seconded by Mr. Kelley. Hearing no further discussion, Motion carried 5:0:0 (5 in favor, 0 opposed, 0 absent). Mr. Nelson made a motion that the Citizens' Advisory Board recommend to the RMLD Board of Commissioners the Fiscal Year 2017 Operating Budget with a Net Income of $3,935,097 as presented at the April 6, 2016, meeting, seconded by Mr. Mancuso. Hearing no further discussion, Motion carried 5:0:0 (5 in favor, 0 opposed, 0 absent). Mr. Nelson made a motion that the Citizens' Advisory Board recommend to the RMLD Board of Commissioners the approval of rates including revised Terms and Conditions, MDPU numbers 259, 260, 261, 262, 263, 264, 265, 266, 267 and 268 effective July 1, 2016, on the recommendation of the General Manager. Seconded by Mr. Chrisos. Hearing no further discussion, Motion carried 5:0:0 (5 in favor, 0 opposed, 0 absent). 5. Public Comment - G. Hooper, Chair Chair Hooper asked if there were any comments. Mr. O'Rourke commented that he was glad to see both the Capital and Operating. Budgets together and noted that he liked the process. 6. Adjournment - G. 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