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HomeMy WebLinkAbout2017-05-10 RMLD Board of Commissioners MinutesO�.OFt• Town of Reading ` Meeting Minutes R.LEIVE0 1M,• I ���� T.Odld GE F°.K, �6�s�ecua4°~ RE.A,DINNG,. MAGS.' Board - Committee - Commission - Council: RMLD Board of Commissioners 101:1 NOY b, Date: 2017-05-10 Time: 6:00 PM Building: Reading Municipal Light Building . Location: Winfred Spurr Audio Visual Room Address: 230 Ash Street Session: Open Session . Purpose:: General Business Version: Attendees: Members - Present: Philip B. Pacino, Chairman;. David Hennessy,.Vice Chairman -Secretary Pro Tem; Thomas O'Rourke, Commissioner; David Talbot, Commissioner; John Stempeck, Commissioner Members - Not Present: Others Present: RMLD: Coleen O'Brien, General Manager;Hamid Jaffari, Director of Engineering and Operations; Jane Parenteau, Director of Integrated Resources; Wendy Markiewicz, Director of Business/Finance; Tracy Schultz, Executive Assistant George Hooper, Chairman, CAB Dan Ensminger, Secretary, Board of Selectmen Minutes Respectfully Submitted By: David Hennessy, Vice Chairman Topics of Discussion: Call Meeting to Order Chairman Pacino called the meeting to order and announced that the, meeting is being videotaped for distribution at community television stations in Reading, North Reading, Wilmington and Lynnfield. Opening Remarks and Introductions Chairman Pacino read the RMLD Board of Commissioners' Code of Conduct and welcomed CAB Chairman Hooper to the meeting. Chairman Pacino also welcomed liaison ,Mr. Ensminger from the Board of Selectmen and asked if he had any comments. Mr. Ensminger replied that he would wait to see what Chairman Pacino had to say on the Instructional Motion. There was. no public comment. Chair's Report Update on Instructional Motion -Town Meeting, May 4, 2017. Chairman Pacino began with the 'Update of the Instructional Motion that was made on Thursday, May 4, 2017 at' the Reading Town Meeting, and explained that the gist of the'Motion was to look at RMLD's return to the Town. Chairman Pacino then addressed several misstatements that have been made. Chairman Pacino stated that someone said that the RMLD is an ATM on Ash Street -that's not true. There was a.statement made that a'Commissioner had appeared in front of the School Committee and said that RMLD was flush with cash. Page 1 1 Chair's Report. Update on Instructional Motion -Town Meeting, May 4, 2017 Chairman Pacino stated that it did not happen during his.31-year tenure on the Board and that he -doesn't know what .Commissioner that allegedly was. There was also a statement made, 6416'6ted to -a Town Official, that the Department is worth $250. million. Chairman Pacino stated that he has no idea where that number came from. The Town Manager stated that he brought up an issue with a former General Manager. Unfortunately,. that never came before the Commission, and Chairman Pacino wishes that it had. Chairman Pacino explained that at the May 4, 2017 meeting he proposed and promised -to call a meeting of a Sub -Committee that has been in existence since June 9, 1998. The Sub - Committee consists of two .members from the Board of Commissioners, two CAB members, and one member of the Reading Board of Selectmen (Chairman Pacino stated he does not care if they opt to have two representatives instead. The Sub -Committee will meet, discuss the return to the Town, and come back with a recommendation from all parties involved. The Commission represents the interests of the Department; the CAB represents the ratepayers, who are the main stakeholders; and the Selectmen represent the Town of Reading. Being the Chair, Chairman Pacino stated he assumed he would be one member of the Sub - Committee and asked Mr. Stempeck, if he's willing, to be the other. Mr. Stempeck replied_ that he would be happy to. Chairman Pacino asked Mr. Hooper to decide with the CAB members who they will place on the Committee. Mr. Hooper asked when Chairman Pacino was looking to have this meeting. Chairman Pacino replied that they need to report back to the Town by the November Town Meeting. Mr. Ensminger asked if it would be possible to get a copy of the original Sub -Committee charter. Chairman Pacino replied that he would have Ms: Foti distribute a copy to all involved parties. Mr. Ensmingerstated the Selectmen will determine their number of Sub -Committee representatives at their next meeting. Mr. Hooper asked for a copy of the charter as well. Chairman Pacino asked Ms. Schultz to send a copy to all the members of the CAB and all the members of the Commission. Chairman Pacino stated he had one, last comment. The final vote was taken when there was less than a quorum; for those people who left, they should be aware that was a very far- reaching discussion that could severely impact this. Department. For those people who left_ the meeting,. Chairman Pacino doesn't know how they feel they can represent their constituents, and added that this is his own personal comment. Mr. O'Rourke said you could also say it's probably not productive to be discussing things at 11:30 at night. Chairman Pacino mentioned that he happened to discuss the formation of the Committee with previous Boards of Selectmen but they never chose to call this Sub -Committee meeting. Chairman Pacino made a motion, seconded by Commissioner O'Rourke, to officially appoint himself and Mr. Stempeck to the Sub -Committee on Reviewing the Return to the Town. Motion Carried 5:0:0. Page 1 2 Chair's Report Update on Instructional Motion -Town Meeting, May_4, 2017 Chairman Pacino asked Mr. Hooper to carry back the message. Mr. Hooper stated that he has spoken to the Wilmington Town .Manager and Town Selectman as this is a concern for all of them. Mr. Hooper is hoping to get a little more detail on what occurred at the Reading Town Meeting.. Mr. Hooper stated that he will wait and see how this works out. Mr. Ensminger announced that he has the wording of the .motion on his phone and read 'Move to- instruct the Board of Selectmen, in light of the Town's difficult financial situation, to study the Reading Municipal Light Department with an objective of increasing annual revenues to the Town of Reading,' Mr. Ensminger added that the final phrase, 'including the possibility of a sale' was struck by amendment and taken out. .Reorganization of the RMLD' Board -Committee Assignments Chairman Pacino announced there are three basic sub -committees: the Audit Committee, the Policy Committee, and the General Manager's Committee. Chairman Pacino stated that he sees no reason to discontinue any of these. Chairman Pacino is on the Audit Committee and wants to stay there. Mr. Stempeck is also'on the Audit Committee -does he want to stay there? Mr. Stempeck stated he would switch it up a little bit and remove himself from that committee.. Mr. O'Rourke volunteered to take Mr. Stempeck's place., Vice Chairman Hennessy will remain Chairman of the Policy -Committee. Chairman Pacino opted to rotate off that committee and was replaced with Mr. Stempeck. Mr. Talbot remains. The General Manager's Committee will consist of Chairman Pacino, Vice Chairman Hennessy, and Mr. Talbot. Chairman Pacino asked who . was responsible for Accounts Payable this month? Ms. Schultz answered Vice Chairman Hennessy and stated she would be sending out. a schedule. Mr. O'Rourke remarked there are some who can't do Accounts Payable or Payroll. Ms. Schultz affirmed, stating no Board Member can do.either for.three years in a row. Mr. Talbot has signed both Payroll and Accounts Payable the last three years; therefore, he isnot assigned either this year. Chairman Pacino stated he is first. back up for Payroll sincehe lives closest and asked if. the Audit Committee met with Mr. Fournier on a regular basis. Ms. Markiewicz replied that it wasn't a regular.meeting; it was mostly at year end. Potential Telecom Revenue -Dave Talbot Mr. Talbot - began by thanking. Mr., Ensminger for attending the meeting. The Town Meeting Instructional Motion was about how RMLD can generate more..revenue. One of the areas we need better awareness of is what we can do with our fiber optic telecommunications network. It goes through all four towns and was built about 15 to 20 years ago, and over time leasing activity has increased, so without even _ trying we've seen revenue increase. It's the one area where revenue.is growing. Mr. Talbot disclosed that in his day job he studies municipal light plants and what they can do. There; are 41 electric municipals in Massachusetts and 15 are in the telecom business. High speedconnections are things that businesses, institutions, schools, and towns need. For RMLD to provide .this service would require engagement of the governing bodies of all four towns and the schools, to see what's being done elsewhere and see what the Department can do. There's leasing and municipal' (although Mr. Talbot added that he understands Reading is already doing well with that), school agencies, .or public. safety applications. Mr. Talbot stated that he doesn't know what the answer is. But if you build it, they Page 13 Potential Telecom Revenue?- Dave Talbot will come. This is a discussion we should be having. What can we do to offer businesses service that is cheap and fast? We're already seeing revenue growth in .this; it's time to set up a formal division. Vice Chairman Hennessy referenced. a seminar that some of the Commissioners. had attended at Harvard. Fiber was billed as the future. Vice Chairman Hennessy asked Mr. Talbot to elaborate on that point, since many people view it as a passing fad. Mr. Talbot explained that it is misleading .to say that wireless is going to replace fiber when we w move to 5g. The reality is that when e move to '5g we'll have smaller transmitters with higher capacity and shorter ranges; they will need fiber. backhaul. The equipment has a 30 to 40 -year lifespan and that is as future proof as you can get. Fiber does replace copper but there isn't something else beyond fiber. Mr. Talbot asked Mr. Ensminger if he had any thoughts. Mr. Ensminger responded that when he hears revenues lighting up, he lights up. Chairman. Pacino added that Mr. Ensminger is a former Board Member 2002-2005. Mr. Talbot added that there are lots of critical upgrades going on behind the scenes at RMLD and Ms. O'Brien is leading the way.' General -Manager's Report - Ms. O'Brien Ms. O'Brien explained that the Northeast Public Power Association (NEPPA) Annual Conference will be held from August 20-23, in Newport, RI. Ms. O'Brien stated she may not be able to attend, but wanted to get authorization from the Board in the event she chooses to go. Chairman Pacino stated he had already booked his room and Vice Chairman Hennessy .stated that he was going as well. Ms. Schultz will circulate the reservation information to the remainder of the Board. Mr. O'Rourke made a motion, seconded by.Mr. Stempeck, to grant General. Manager Coleen O'Brien BoardApproval to attend the NEPPA conference August 20 through 23. Motion Carried 5:0:0. Ms. O'Brien then introduced Ms. Markiewicz, Chief Financial Accountant, to present the Operating Budget. Review of RMLD's Fiscal Year 2018 Operating Budget Ms. Markiewicz started with the Six -Year Plan, and explained that it is'a high-level profit and loss statement. It shows sales revenue. We are trying to estimate a decrease of a half a percent every year, which is consistent -with. the prior year's Six -Year Plan. Operating expenses are staying consistent with a 3 percent increase in operating and, maintenance expenses and general administrative expenses. We're trying to get as close as we can to an 8 percent rate of return. Ms. Markiewicz then moved on to the detailed profit and loss for the Budget FYI 8, and asked Ms. Parenteau to present the revenue portion. -. Ms. Parenteau stated that the Operating Revenue for FY 18 is estimated to be $26.3 million. That can be funded in one of two, ways: if there is an increase in sales or by a rate increase. Over the last ten years, sales have been flat and decreasing, so this budget has assumed flat growth. To increase revenue, a rate increase is necessary across all classes of customers. A Cost of Service Study was done, and there was a presentation to the Board on April M. There was a presentation to the CAB on April 2 and there will be a follow up for a final recommendation to the CAB on May 24. Once the CAB's recommendation is received, the rates will be brought to the Board for approval. Increases will range anywhere from 3 and a half to 7 percent -and that will depend on customer class and usage. RMLD is also looking to implement changes with how Page: 14 Review of RMLD's Fiscal Year 2018 Operating Budget capacity and energy are charged within the industrial class. One of the increases you'll see further in the budget is the increase in capacity from this fiscal year to last fiscal year. It's currently estimated to be an increase of $4 million dollars to the Department in capacity alone. Those costs are a passthrough to customers; the Department does not make any return on that. However, it's a 4 to 5. percent increase for every customer in just power supply. Ms. Markiewicz then began with the Operations and Maintenance Expenses, stating that the percentage of change reflects the 2017 budget to the 2018 budget. Any fluctuation may be due to working more on the operating or capital expenses this year. Ms. Markiewicz then said ,that she would go through each line item. FERC 580 Supervision.and Engineering are. going up 26 percent. This includes engineering labor with overtime, and department expenses including vehicles and training. This is also anticipating two new engineering positions. FERC 581 Station Supervisor is labor with, overtime; as .well as vehicles and training. There's an increase due to the shift from.capital'to operating. FERC 581 Line General include. Line Department training, employee time off, and weather related time working _in-house instead of in the field. That went down 29 percent because they're going to be doing more capital work this year. FERC 582 Control Room is Station Operator labor with overtime .and department expenses: FERC 585 Street Lighting is routine patrolling and repairs and maintenance by T -Men; it is going up 16 percent because there were more repairs. and maintenance than we had anticipated. FERC 586 Meter General is comprised of Meter Department labor with overtime and expenses, vehicles, and training. This is down 11 percent -due to capital projects: FERC 588 Materials Management is Purchasing expenditures. This includes labor, stockmen, some educational expenses, some telephone and copier expenses, and department expenses. This is shifting down 3 percent due to a temporary hire. FERC 590 Maintenance of Structures and Equipment are station tech labor with overtime, training, vehicles; and supplies. RMLD is looking to add one station tech operator this year. FERC 593 Maintenance of Lines -Overhead is staying stable. This includes line labor in the field, overtime,. police details, and tree trimming. This is $1 million- net. capital. FERC 5.94 Maintenance of Lines -Underground is comprised of underground labor with overtime, vehicles, and supplies. This is going. up 59 percent due to more operating expenses versus capital. FERC 595 Maintenance of Line -Transformers is an estimate in case of transformer leaks, battery disposal, or hazardous waste. FERC 596 Maintenance of Streetlights is T -Men changing out bulbs and fixing lamps in the field. That's going up because the amount of need it was underestimated in the past. Ms. Markiewicz then moved on to General & Administrative Expenses. Page 1 5 Review of RMLD's Fiscal Year 2018 Operating Budget FERC 902 Meter Reading is meter reading labor and meter department expenses. This is going up due to. contractual increases and retro pay. FERC 903 Customer Collections is comprised of labor, education, and supplies for Accounting, Customer Service, and the IT department. RMLD is looking to add one IT billing person, which is why there is an increase of 11 percent. FERC -904 Uncollectible Accounts usually holds steady at $150,000. FERC 916,Energy Audit and Conservation is decreasing less than one percent. It is comprised of Integrated Resources labor, education, supplies and conservation programs. FERC 920 Administrative and General Salaries will decrease by .10 percent due to the departure of some longtime employees. This is General. Manager's labor, Human Resources, Community Relations,CAB, E&O Director, facilities Manager and some of the Business Director's time.as well. ' FERC 921 Office Supplies is going up a quarter of a percent due to increases in product costs FERC 923 Outside Services is made up of legal fees, consulting fees, audit fees, and fees for software consulting. This is increasing 13 percent mostly due to increases in vendor fees. Mr. O'Rourke asked giving net changes, looking at 2018 budget. relative to the 2017 Budget? Ms. Markiewicz answered the 2017 budget. This is not what was actually spent, but what was budgeted in 2017. As opposed to where we are now, which is 8 months actual and 4 months remaining in the budget. Mr. O'Rourke stated he would have thought the actual full budget would have given a better depiction. Mr. Stempeck clarified with Mr. O'Rourke that he was saying it's better to have more actual than estimated. Mr. O'Rourke replied that we're looking to measure our actual spending in 2017 and how much that's going up in 2018. Ms. Markiewicz explained the reason that wouldn't be as accurate is that•you really don't know how much you're going to spend in the last 4 months. Sometimes you're trying to rush to get projects done to meet'budget, or there are timing issues. Mr: O'Rourke stated that makes sense. In some businesses the budget tends to be an artificial number where it doesn't matter if it's met or not met. Ms. Markiewicz said as it stands right now we're on'target, and then continued on to the next line item, FERC 925 Injuries and Damages, which is comprised of some property damage claims, workers comp, and disability insurance. This is going down 8 percent due to a subrogate assisting with RMLD claims. FERC 926 Employee Pension and Benefits could change. The issue is that, at the end of the year, there could be a last-minute pension calculation that -could change this number drastically. The prior year, the auditor changed it by $402,000. We can only stay on target with what we know. This is due to unfunded liability. Page 16 Review of RMLD's Fiscal Year 2018 Operating Budget FERC 930 Miscellaneous General Expenses is a. catch all that includes dues, education, supplies, drug testing, background checks, community giveaways, promotional items, and the historical calendars. This is going down 5 percent. . FERC 931 Rent Expense is going to stay the same based on RMLD's contract with JCM Realty. Rent does not include snow removal. FERC 935 Maintenance of General Plant includes software; ITRON, . the RMLD website, GIS, SCADA, and engineering software. This is going up about- 56.6 percent. RMLD hasn't had a lot of automation and is moving in that direction to improve efficiency._ FERC 935 Maintenance of Building 8, Garage 'is. comprised of heating oil, gas, paint, carpeting, water, plumbing, snow removal and ground services. That's going up about 14 percent. Chairman Pacino asked if 931 is the rent for the garage out back. Ms. Markiewicz answered yes. Chairman Pacino asked fora breakdown of the, amounts of health insurance and retirement in 926. Ms. Markiewicz stated she can get that, and added that the health insurance is increasing. Ms. O'Brien said that she knows this is a new format, but everyone will get used to it. FERC coding is a set of standardized utility accounting principles. It puts employees on- the some page. Mr. Ensminger asked if the financial software program Ms. Markiewicz is using is Munis. Ms.- Markiewicz answered that it is Great Plains. Mr. Ensminger asked, if money needs .to be moved from one line item to another, who has the authority to approve the transfer? Chairman Pacino answered that it would be the General Manager. Ms. Markiewicz stated that RMLD doesn't do a line item budget. Chairman Pacino added that the budget is reported on monthly, so that the Board can question it. Ms. O'Brien answered that. there is a little bit. of room in the_ FERC accounting for where activities/assets are placed, but once Ms. Markiewici and Ms. O'Brien agree on what goes where, it. will not. change. Typically you wouldn't move. these around. FERC allows some expenses to go into multiple categories,, but once it's decided it stays there. Mr. Stempeck stated that makes sense, otherwise it wouldn't be consistent year to year. At this time, Mr. Ensminger left due to another meeting. Ms. Markiewicz continued with her presentation, . stating. FERC- 403 Depreciation is increasing because plant is increasing. Depreciating plant is at 3 percent, and is staying consistent. FERC 408 Voluntary Payments to Towns. are increasing by 3.8 percent. That's based on two percent of RMLD's net plant. Plant goes up -payments go up. FERC 419 Interest Income is going up 20 percent; which may appear odd. It's simply because it has been underestimated in -the past. This is cash reserve money that's getting interest income. r Page 17 Review of RMLD's Fiscal Year 2018 Operating Budget This includes depreciation fund, rate stabilization, sick buyback, and the customer deposit fund. FERC 419 Other Income is scrap metal and other small areas of money that come in. FERC 426 Return on investment to the Town of Reading includes loss on disposable plant at the end of the year. Return on Investment is based on'the CPI index. It is going up 1.4 percent. FERC 431 Interest Income is interest to customers when they close out their accounts and request their customer deposits back. The bottom line net income targeting $4.1 million, or $4.5 million for a.6 percent increase. Then; if you go down to the rate of return calculation, you add back. your return on investment to the Town and your loss on disposal, and then you subtract your Interest Income and in that Other Income number is construction of about $400,000 so your net $6:1 million as, compared to 8 percent of your net plant, $6.3 million; giving you a 7.75 rate of return. Mr. Stempeck stated that's pretty close to the maximum 8 percent rate of return. Ms. Markiewicz moved on to Projected Fixed and Semi -Variable Costs. This is fixed costs and what we have available- to move things around in. '82.68 percent is fixed in the FY18 total budget: About 74 percent are our Power costs -Fuel, Capacity and Transmission. The Depreciation Expense is 4.6 percent, Return on Investment to the Town of Reading is 2.5 percent, above the line Town Payments are 1.5 percent. Disposable losses are less than, a quarter percent. The 17.3 percent of the budget that remains is what RMLD has to move across the various categories. Labor and Employee Benefits/Pension take up about'11 percent of that. . Mr. O'Rourke remarked that there's not a lot of room for discretionary expenditures. Ms. Markiewicz answered that it really puts it into perspective. Vice Chairman Hennessy noted that the two biggest. semi -variable costs are relatively fixed as well. Ms. Markiewicz concurred, citing the labor contracts. Mr. Talbot asked how many new staff positions are being contemplated. Ms. Markiewicz stated that RMLD is hoping to hire 2 new employees in FYI 8. The talent is not out there. There are an additional 7 previously approved positions that are still vacant. Ms. O'Brien stated that some of the delay in hiring is because of the talent and skill level.needed due to a lack of succession planning. RMLD'is not in a position where it can hire completely green people for certain descriptions. We're also developing career development programs and rewriting job descriptions; each one must go through their respective union. That and trying to find the talent is creating the lag. Mr. Talbot asked if additional staffing. was being considered. Ms. Markiewicz explained that there are currently 74 employees; if we were to staff what has already been approved that number would go up to 83. Ms. O'Brien added that, in the past, the. Department has typically had 80 to 83 employees. There have been a number of retirements. Those positions ,have. been kept on the books. The intent is to fill them as part of the organizational restructuring. Ms. O'Brien explained the 2 positions Ms. Markiewicz was referring. to are replacing one station tech operator and hiring an additional Page 18 Review of RMLD's Fiscal Year 2018 Operating Budget billing individual in IT'. Mr. Talbot revealed that the reason he was asking was because he thinks there should be some telecom expertise in house. Ms. O'Brien explained you have to be very careful spending electric funds on fiber. We need to stay within the parameters of what is allowed. Mr. Talbot explained that the spirit of what he's saying is that it would be good to have some in- house expertise who can answer questions and identify telecom opportunities. In the next year. or two we should be thinking of developing one person in the Department. Mr. Stempeck said that would be part of the output of the Committee that was formed tonight; finding new revenue and enhancement. Chairman Pacino reminded the Board that we're in the wires business. Mister Talbot reiterated that there are fifteen other light plants are in the fiber business; by accident we are too. Ms. O'Brien clarified that the fiber was built for the use of the electric company, and any revenue that the electric company makes from surplus goes to the electric operating funds. If you change that you would have to develop another set of books. Ms. Markiewicz added that you need to set up another entity. Mr. Hooper clarified that RMLD is currently short nine employees, which Ms. Markiewicz affirmed. Must have noticed deficiencies; tough to operate. Is RMLD still carrying pay for those nine employees? It has been over a year; where does that money go to? Ms. Markiewicz answered that it just sits in, the Operating Fund. Mr. Hooper clarified that money from those nine. salaries from last year carries forward? Ms. Markiewicz answered yes, and when we fill the positions we disperse the cash accordingly. Chairman Pacino asked if there were any comments or questions on the Operating Budget, which will be voted on tomorrow night. Mr. O'Rourke added that if you approve the Operating Budget and then have issues on the Capital, they're related; you don't want to approve something and then undo it. Because the RMLD Procurement Request Requiring Board Approval is Capital Budget related, the Board opted to vote on IFB 2017-40 the following evening. RMLD Board Meetinas Chairman Pacino and the Board conferred that the third Thursday of every month will be the meeting date. The next meeting will be on June 15. Mr. Stempeck will be unable to attend. Ms. O'Brien asked, in regards to the Strategic Meeting, is it a committee or a meeting? Chairman Pacino answered: meeting. Page 1.9 RMLD Board Meetings Mr. O'Rourke stated that the last time committees were. redone the Board updated their contact numbers. Ms. Schultz stated she would circulate an.e-mail tomorrow. Adjournment Mr. O'Rourke made a motion, seconded by Vice Chairman Hennessy, to adjourn at 7:09 pm. Motion Carried 5:0:0. Executive Session: Executive Session was posted in the event discussion relative to competitively sensitive issues relative to labor issues or real estate acquisitions arose. There was no such discussion, therefore . no Executive Session was held. A true copy of the RMLD Board of Commissioners minutes as ap ved byYecretary ority of the Commission. David ennessy,P Tem RMLD Board of Commissioners Page 1 10 READING MUNICIPAL LIGHT DEPARTMENT BOARD OF COMMISSIONERS REGULAR SESSION r MAY 1.09 2017 r READING MUNICIPAL LIGHT DEPARTMENT FY18 OPERATING BUDGET ATTACHMENT 1 0 READING MUNICIPAL LIGHT DEPARTMENT FY 18 OPERATING BUDGET March 31, 2017 Coleen O'Brien General Manager TABLE OF CONTENTS Page # Six Year Plan 4 $9 Income Statement Summary 6 Operating Expenses Summary 7. Description of RMLD's Power Supply 9 Purchase Power Expense Summary 17 FISCAL YEAR OPERATING REVENUE: SALES OF ELEC - BASE SALES OF ELEC - BASE CAPACITY SALES OF ELEC -BASE TRANSMISSION SALES OF ELEC - FUEL NYPA FORFEITED DISCOUNTS ENERGY CONSERVATION TOTAL OPERATING REVENUE OPERATINGEXPENSES: PURCHASED POWER - BASE CAPACITY PURCHASED POWER - BASE TRANSMISSION PURCHASED POWER - FUEL OPERATING 8 MAINTENANCE EXPENSE GENERAL 6 ADMINISTRATIVE EXPENSE DEPRECIATION EXPENSE TOWN PAYMENTS TOTAL OPERATING EXPENSES TOTAL OPERATING INCOME OTHER INCOME - JOBBING, ADVANCE IN AID INTEREST INCOME TOTAL OTHER INCOME CUSTOMER DEPOSIT INTEREST EXP OTHER DEDUCTIONS (INCLUDING ROI) TOTAL MISCELLANEOUS DEDUCTIONS NET INCOME S 1,039,927 209.514 S 1,249,441 $ 1,957 2,467,319 S 2,469,276 S 3.369.404 S 799,245 138,384 S 936,629 S 3.989 2,434,668 S 4.429.670 E - 890,000 150,000 S 1,040,000 S 2,500 2,570,430 S 4;114,622 P.A. 1 W ) f 890,000 159,899 S 1,040,000 f 3,000 2,596,142 S 2,599,142 S 4,137.546 f 690,000 S 690.000 150,000 150,000 S 1,040,000 S 1,040,000 f 3,500 2,648,325 S 2,651,825 S 4,160,406 s 3,000 2,622,104 S 2,625,104 S• 4,121.256 S 890,000 is9,000 s 1,aa9,000 S 3.500 2,674,808 f 2,678.308 i f 4,126,910 READING MUNICIPAL LIGHT DEPARTMENT SIX YEAR PLAN March 31, 2017 (as revised 4111117) ACTUAL B ACT 14 BUB 2016 2017 2018 change 2019 change 2020 change 2021 change _ 2022 S 23,207,288 S 25,446,977 3.50% S 26,337,621 3.50% S 27,259,438 3.00% f 28,077,221 2.50% S 28,779,162 2.00% S 29,354,735 18,90D,249 20,137,351 24,476,160 23,263,233 19,600,575 17,124,283 21,449,835 12,807,770 13,113,601 13,612,615 14,638;396 15,397,350 15,040,074 16.679,986 33,528,502 33,516,934 32,491,810 32,791,807 33,107,725 33,426,802 33,749,079 (1,165,456) (1:192,136) (1,200.000). (1,200,000) (1,200,000] (1,200,000) (1,200,000) 791,780 812,450 800,000 817,703 842,317 863,375 860,642 665,85D 686,949 675.000 675,000 675,000 675,000 675.000 { _ S 68,735,983 f 92,522,126 S 97,193,406 S 98245,657 S 96,500,188 S 95,508,685 S I 101,589,268 $ 18,900,249 f 20,281,104 f 24,476,169 S 23,263,233 S 19,600.575 f 17,124,283 f 21,449,035 12,373,633 12,969,787 13,612,815 14,638,396 15.397,350 15,840,074 16,679,986 32.426,456 32.324,798 31,291,810 31,591,807 31,907,725 32,226,602 32,549,070 5.312,445 5,542,785 5,941,700 3.00% 6,119.951 3.00% 6.303,550 3.00% 6,492,656 3.00% 6,687,436 9,788,822 9,938,502 10,361,361 3.00% 10.672.202 3.00% 10,992,368 3.00% 11,722,139 3.00% 11,661,603 3,944,792 4,112,205 4,362,000 4,563,000 4,877,000 5,045,000 5,152,080 1,400,347 1,421,179 1,500,000 1,700,380 1,715,260 1.685,420 1.643.920 $ 84,146,744 S 86,590,420 S 91,545,846 S 92,548,969 S 90.793,827 f 89,736,374 $ 95,824,050 S 4,589,239 S 5,931.706 S 5,647,560 S 5,696,688 S 5,706,360 S 5,772,311 S 5,765218 S 1,039,927 209.514 S 1,249,441 $ 1,957 2,467,319 S 2,469,276 S 3.369.404 S 799,245 138,384 S 936,629 S 3.989 2,434,668 S 4.429.670 E - 890,000 150,000 S 1,040,000 S 2,500 2,570,430 S 4;114,622 P.A. 1 W ) f 890,000 159,899 S 1,040,000 f 3,000 2,596,142 S 2,599,142 S 4,137.546 f 690,000 S 690.000 150,000 150,000 S 1,040,000 S 1,040,000 f 3,500 2,648,325 S 2,651,825 S 4,160,406 s 3,000 2,622,104 S 2,625,104 S• 4,121.256 S 890,000 is9,000 s 1,aa9,000 S 3.500 2,674,808 f 2,678.308 i f 4,126,910 READING MUNICIPAL LIGHT DEPARTMENT SIX YEAR PLAN March 31, 2017 (as revised 4111117) FISCAL YEAR ACTUAL 8 ACT 14 BUD 2016 2017 2018 change 2019 Change 2020 change 2021 change i 2022 Not Income 3 4,114,622 f 4,137,546 1 4,121,256 S 4,160;486 S 4,126,910 R61 Payment 2,570,430 2,596,142 2,622,104 2,648,325 2,674,808 Fuel adjustment PPCT adjustment. _ Interest Income (150,000) (150,000) (150,000) (150,000) (150,000) Advanced in Aid of Construction (400,000) (400,000) (400.000) (400,000) (40D,000) Adjusted Not Income for ROR S 6,135.860 S 6,183.688 5 6,193,360 S 6,258,811 S 6,251,718 NET PLANT at END of FY S 79,119,000 S 85,01000 S 85,763,000 5 84,271,00D $ 82,196,000 Allowable 8% S 6.329,520. 5 6,801,520 S 6,861,040 .5 6,741,660 S 0,575,680 ROR 7,75°h 7.27% 7.22% 7.431. 7.61% READING MUNICIPAL LIGHT DEPARTMENT FISCAL YEAR 2018 OPERATING BUDGET SCHEDULE OF REVENUES AND EXPENSES flower Expenses 547 Purcnased Pourer F ,el Expense S 2016 2016 2017 2017 2017 2017. 2018 555 Purcnaseo Power Capacity Budaal Actual Budnet 4 Monlns Budget 8 Monlns•Aclual B Actue14 Siegel Buaget Operating Revenues 24,476 151 565 Pumtasea Puattr Tlansanussrun 12.600,039 12 373.033 13.378.627 3.835.949 9.133.838 Base Revenue $ 23,020,930 S 23,207,288 5 25,500.000 $ 7 720,118 S 17.726,859 5 25,446.977 5 26 337 621 Fuel Revenue 35 226,324 33.528,502 34,074 492 10,120.250 23,390,884 33,516.934 32,491,810 Purchased Power Capacily 8 I ransnessutn 29 096.424 31 706.019 34,322,278 9,774,333 23,476.618 33.250.951 38,088 978 Forfe,tedDscoints 690628 791,780 688.500 229.500 562,950 812,450 800,000 Energy Conservat,on Reven.,e 707,280 665.850 673,000 224,333 462.616 605,949 675.000 NYPA Creel (900,000) tl165,4551 190000D) t413771) (778365) 011921361 (1209000) Tole, Operating Roven�da S 88;441 594 S 68.735,963 S '94,358,270 S 27 654,764 $ 64,867 362 S 92.522,126 5 97 193,409 Expenses 119,398 586 Meint General 277,523 226,126 250,375 63.458 140,368 flower Expenses 547 Purcnased Pourer F ,el Expense S 34.326,329 S 32,426.456 S 33.174.492 S 9,726,169 $ 22 698,629 S 32,324,798 S 31 291.810 555 Purcnaseo Power Capacity 17,095,785 16,900.249 20,943.651 6,981,217 13,299;947 20,201,164 24,476 151 565 Pumtasea Puattr Tlansanussrun 12.600,039 12 373.033 13.378.627 3.835.949 9.133.838 12.989,7a? 13 (112.817 Iota) Purchased Power S 64,022,753 5 63,700 336 S 57 495,770 S 20,543,335 S 45,032 414 S 65:575 740 S 59,380 788 Operations aria Ma'inlenance Expenses 5,960,596 S 5,931,706 S 5,647,560 Kon Operating Revenues (Expenses I. 5BO Superv,slan,and Ergneenng 632,691 562 841 658 195 224,839 270,071 494,910 829 705 561 Staton Supervisor 84,658 157 474 91,289 30,423 93,002 124,225 130,652 581 _no General 666,641 755,206 901,213 300,404 444,439 744,843 638,107 582 Contra' Room 448,347 406,831 472,879 157 626 311,651 469,278 473,570 585 Street ..,ghting 93 347 126,700 102,402 34 134 78 135 112 269 119,398 586 Meint General 277,523 226,126 250,375 63.458 140,368 223.826 222,280 588 Maiera,s Management 457,068 465,948 464 418 154,805 297.302 452.108 450 820 590 Ma manance of Strictures aria Egwpment 384 655 479;471 419,599 139.866 313 051 452,917 495,731 593 Ma manance of tines - Ovemaao 1.971,953 1 871,739 2,044,499 661.500 1,352,569 2.034,088 2 038 277 594 Manlenance of _,nas-,lnderground 124,508 137,127 125,006 41 689 195,627 237,315 198,592 595 Ma-menance of _�na Transformers 300,000 94.909 900.600 100000 23,558 123.556 300.000 590 Maintenance of Street _ ghls 10 072 25 984 113.287 3.429 70.039 73.469 46.242 Total Operawns Expenses S 5.451,063 5 5.312.445 S 5.840 202 S 1,952,175 S 3.590:610 S 5.542,785 S 5,941,700 Genera, 8 Administration Expenses. 902 Meier Reading 32,578 20,803 32,640 10,880 16,878 27.758 39 847 003' Cu5lomerCo'iecucn 1093,219 1,651.557 1.792724 597,575 1,05 1, 736 164y311 1986.508 904 Jncal ect We Accounts 120,000 64,770 150 000 50,000 100,000 150,000 150,000 916 Energy AAI aria Consortial an 1,298,875 1 195,418 1,501,806 500 6D2 809,435 1_,310,037 1,490,463 920 Adm�mstravve aria GeneralSa ares 838 461 909 832 1,134,674 376,225 624,921 1,003,145 1,017,151 921 Office Sapplies and Expenses . 301 000 375,675 349.000 - 116.333 1116,212 302,546 350,OD0 923 Oulsioe Services 377,332 905,139 418.100 130,367 336,649 476,016 471,900 924 Property insurance 466,200 356,212 424 500 141.500 223,045 364,545 427,200 925 Injuries aria Damages 51,254 63.072 57,215 19 072 41,067 60,138 52,613 926 Emp'ayee Pens ons and Elenel'as 2 633 591 3,521.732 2,922,673 974,224 2,444,043 3,418,207 3,000,437 930 Miscellaneous Gerera, Expanse 231.022 1311 385 219,150 73,053 107.673 180,728 207,205 931 Rent Expanse 21Z 000 192 115 212.000 70,607 110,514 187,181 212,000 935 Me.nienance of General Plant 178 2(10 '203.657- ' 180.600 60,001) 195,668 255.668 281.880 -935 Maintenance of Bulloing 8 Garage 660.131' 59D.456 59D 523 196.641 355,324 552.165 674,157 Total Maintenance Expenses S 9,093,863 S 9788,822 S 9,985,013 S 3320,338 S 6 610 154 5 9,938 502 S 10,361,361 Qmer Operating Expenses. 403 Deprec-.alen S 3.983145 S 3,944,792 3 4,134,000 $ 1,378,000 S 2,734,205 5 4112,205 $ 4302.000 408 VaLudaryPayrnenisloTowns 1,416,OOD 1,400347 1,445,420 481,807 939,372 1,421,179 1,500.000 Tota. Otner Expenses S 5.399145 S 5.345,139 S 5,579,420 S 1,859.607 5 3.673.577 S 5,533.384' 5 5.862.000 Operating income S 4474;170 S 4,589239 S 5.456,805 5 (20,890) S 5,960,596 S 5,931,706 S 5,647,560 Kon Operating Revenues (Expenses I. 419 merest income $ 150,000 S 209 514 5 125,000 $ 41.667 5 90,710 S 138 384 S 150000 419 0(nor income 910,000 1,039,027 890,000 296,867 501;578 790,245 690,000 426 Return on atvestmanito Read ng (2.520,000) (2,467 319) (2:534.668) (844,889) (1,589,779) (2 434.668) (2570.438) 431 Interest Expanse (2.100) (1 957) (2.1001 (700) (3,269) (3.989) (2 500) Tota Non Operating Reven,.e5(Expenses) S (1462,100) S (1219,835) S (1,521.7681 S (507250) S (994 772) 5 (1.502.028) 5 (1,532938) Not income 5 3.012070 S 3,369,404 3 3,935.097 5 (536,146) 5 4.955,625 $ 4,429.670 5 4,114,622 READING MUNICIPAL LIGHT DEPARTMENT FISCAL YEAR 2018 OPERATING BUDGET ACTUAL AND PROJECTED FIXED AND SEMI -VARIABLE COSTS -- - --- -- FIXED COSTS: FY16 OPERATING BUDGET FY17 OPERATING FY16 ACTUAL BUDGET July 2016 -Feb 2017 ACTUAL 8 mos. March 2017 -June 2017 BUDGET 4 mos. FY17 PROJECTED TOTAL FY 18 OPERATING BUDGET FY18 PERCENTAGE OF TOTAL BUDGET Purchased Power - Fuel $ 34,326,329 $ 32,428,456 $ 33,174,492 $ 22,598,629 S - 9,726,169 S 32,324,798 $ 31,291,810 33.25% Purchased Power - Capacity S 17,095,785 $ 18,900,249 S 20,9_43,651 $ 1.3,299,947 $ 6,981,2.17. $ 20,281,164 $ 2_4,476,161 26.01% (Purchased Power -Transmission $ 12,600,639 5 12,373,633 $ 13,378,627 $ 9,133,8_38 $ _ 3,835,949 $ 12,969,787 , $ 13,612,817 14.46% Depreciation Expense S 3,983,145 _5 3,944,792 $ 4,134,000 _$ _ 2,734,205 $ 1,378,000 $ 4;112,205 S 4,362,000 4.63% Misc Deduction •ROI Reading 5 2,370,000 5 $ 2,384,668 $ 1,589,779 S 844,889 $ 2,434,668 $ 2,420,438 -- 2.57% Town Payments $_ 1,416,000 $ _2,467,319 1,400,347 $ 1,445,420 _ S S - 481,807 4 $ 1,421,179 5 1,500,000 1.59% _ _ Misc Deduction - Disposal Losses$ 150,000 $ 85,561 S 150,000 (5 _939,372 $ - 5 $ 150,000 I 0.16% SUB -TOTAL _ $ 71,941,898: $ 71,598,356 S 75;610,858 $ 50,295,770 $ 23,248,031 $ 73,543,801 $ 77,813,226 82.68% SEMI VARIABLE COSTS: Laboi - 5, 514_86,590 $ 5,664,308 $ 6,511,885 $ 3,547,209. $ _ 2,170,628 S 5,717,837 5_6,376,181 6.77% Employee Benefits/Pension $ 2,632,391 5 3,521,732 $ 2,922,673 S 2,444,043 $ 974,224 $ 3,418,267 .5 3,000,437 3.19% _ Other Operating and Maint Expenses $ 1,805,590 $ 1,610,948 i:5 1,757,617 -_ .$ - 1,393,916 $ 591,314 $ 1,985,231_-5_ 1,953,597 2.08% Conservation Expenses 5 816,602 $ 689,838 - $ 871,574 1 $ 475,639 5 290,525 $ 766,164 $ 952,565 - 1.01% Tree Trimming_.-_ $ 88_7,381 S 770,283 $ 786,958 $ _- 537,038 $ 262,319 $ 799,357 r- $ 886,340 l 0.94% Overtime S 562,634_5 759,908 $ _ 561,520 .$ 525.7995 187,173 S 712,973 5 763,517 0.81% Professional Services S 377,332 1 $ 505,139 5 418,100 $ 336,649 $ _139,367 $ 47&,016 ' S 1 471,900. 0.509'° _ Property Insurance S 466,200 5' 356,212 $ 424,500 5 - - 223,045 $ 141,500 5 _ 364,545 S _427,200 0.45% Office Supplies S 301,000 $ 375,675. $ _ 349,000 $ S 116,333 i $ 302,546 $ 350,000 ' 0.37% Transformer(hazard mater_ial). 5 S 94,909 S 300,000_ 5 _186,212 23,558 $ _ 100,000 T$ 123,558 $ 300,000 _0.32% _ Training/Tuition_ S _300,000 226,755 $ 122,712 T $ 232,175 $ 91,258 5 _ 77,392 $ 168,_649 S 289,691_ 0.31% Rent Expense S 212,0005_ 192,115 212,000_ 5 116,514 $ $ 187,181 $_ 212,000 0.23% _ _ Bad Debt Expense_ S 120,000 5 _$ 64,770 i S 150,000 $ `- 100,000 $ _70,667 - 50,000 $ 150,000 $ 150,000_ _ 0.16_55 - Vehicle S 279,396 $ 213,544 5 249,598 5 158,416 $_ 83,199 5_ 241,616 _5 89,520 0.10% Injuries & Damages 5 _ 5 63,072 $_ 57,215 ' 5_- .4.1,06_7 5- _ 1.9,072 5 60,138 $ _ 52,613 - 0.06% _ RMLD/CAB_ �_ $ _51,254 22,500 $ 12,499 ; $, 22,500 $ 3,700 5 7,500 • S 11,200 $ 30,000 0.03% _ _ SUB -TOTAL $ 14,547,625 $ 15,017,664 5 15,827,315. $ 10,204,063 $ 5,281,214 $ 15,485,277 $ 16,305,561 17.32% TOTALS $ 86,489,523. $ .86,616,020 $ 91,438,173 5 60,499,833 5 28,529;244 , 5 89,029,078 $ 94,118,787 100.00% SEMI VARIABLE COSTS: Labor Employee Beneflts/Pension Groups (all) Conservation Expenses Tree Trimming Overtime Property Insurance Professional Services Office. Supplies Vehicle , Rent Expense Training/Tuition Transformer (hazard material) Bad Debt Expense Injuries & Damages RM_ LD/CAB SUB -TOTAL REV 4/11/17 READING MUNICIPAL LIGHT DEPARTMENT FISCAL YEAR 2018 OPERATING BUDGET SUPPLEMENTAL INFORMATION FY19 CAPITAL FY18OPERATING BUDGET BUDGET TOTALCOST $ 6,376,181.00 S 1,104;638.00 $ ' 7,480,819.00 $ 3,000,437.00 $ 614,179.00 $ 3,614,616.00 $ 1,953,597.60 $ 189,428.00. $ 2,143,025.00. $ 952,565.00 $ - $ 952,565.00 $ 886,340.00 $ - $ 886,340.00 763,517.00. $ 134,372.00 $ 897,889.00 $ 427,200.00 5 - $ 427,200.00 $ 471,900.00 $ - $ 471,900.00 $ 350,000.00 $ - $ 350,000.00 $ 89,520.00 $ 301,596.00 $ 391,116.00 $ 212,000.00 $ - $ 212,000.00. $ 289,691.00 $ - $ 289,691.00 $ 300,000.00 $ - - $ 360,000:00 $ 150,000.00 $ - S 150,000.00 $ 52,61300 $ 24,987.00 $ 77,600.00 $ 30,000.00 $ - $ 30,000.00 $ 16,305,561.00. 5 2,369,200.00 S 18,674,761.00 Description of RMLD's Power Supply Stony Brook Intermediate Unit The Stony Brook Intermediate Unit is a 354 -megawatt, combined -cycle power plant that entered commercial operation in 1981. The unit's three gas turbines generate electricity using either No. 2 oil: or natural..gas, with additional electricity produced using a single steam turbine in the combined -cycle process. MMWEC completed construction of a natural gas�pipeline to serve the Intermediate Unit in September 2002. The RMLD has a Life of Unit (LOU) entitlement for 14.453% of the unit or. approximately 51 Mws. The RMLD has paid off the debt service associated with this project. Quick Facts — Stonybrook Intermediate U -nit Location Ludlow, Massachusetts On -Line Date .1981 Fuel No. 2 oil/natural gas Principal. Owner/Operator MMWEC Total Capacity- 354 megawatts Stony Brook Peaking Unit The Stony Brook Peaking Unit is a 172 -megawatt peaking plant that entered commercial operation. in 1982. The unit's two turbines generate electricity using No. 2. oil. The RMLD has a.Life of Unit (LOU) entitlement for 19.516% of the unit which is equivalent to approximately 33 Mws. The RMLD has paid off the debt service associated with this project. 'Quick Facts — Stonybrook Peaking Unit Location On -Line Date Fuel Principal Owner/O.perator Total Capacity Ludlow, Massachusetts 1982 No. 2 oil, MMWEC 172 megawatts Braintree Electric Light Department - Watson Unit The simple -cycle gas fired plant is powered by the first two Rolls-Royce Trent 60 gas. turbines built for the U.S. power generation market— known as Watson Units #1 and #2. The units. entered commercial operation on. June 23, 2009. Both. Watson Units are bid into the ISO -New England markety system daily and are - dispatched based on their bid price. The units -two turbines generate electricity using natural gas, with No. 2 oil as backup fuel-. The RMLD has a 20 year entitlement for 10% of the unit which is equivalent to about 10. Mws. Quick Facts—Watson Unit Location On -Line Date Fuel Principal Owner/Operator Total Capacity Seabrook Station Braintree, Massachusetts 2009 Natural gas/No. 2 oil B.ELD 100 megawatts Seabrook Station is a 1;244. -megawatt nuclear generating plant located in Seabrook, New Hampshire. An operating -license for Seabrook was -issued in 1986, but the plant did not begin. commercial operation until 1990. The principal owner and operator of Seabrook' Station is NextEra Energy Resources LLC, a subsidiary of Florida based FPL I Group, Inc: NextEra owns 88.2% of Seabrook Station. The other owners are MMWEC (11:59%) and two Massachusetts municipal utilities, the Taunton Municipal Lighting_ Plant (0.1.3%) and Hudson Light & Power Department (0.-08.%). NextEra has announced plans to seek an extension of its. Seabrook operatinglicense from the current license expiration of 2030 to 2050. RMLD. signed 3 different projects to finance Seabrook, Mix 1, Project 4, and Project 5. The debt service associated with these projects will be paid=off in 2014, 2017 & 2018 respectively. The RMLD has a Life of Unit (LOU) for 0.635% or approximately 8 Mws of'the.unit. Quick Facts = Seabrook Station Location Seabrook, New Hampshire On -Line Date 1990 Fuel Nuclear —Pressurized Water Reactor Principal Owner/Operator NextEra Energy Resources, LLC Total Capacity 1,244 megawatts Millstone Unit 3 'Millstone. Unit 3 is a 1,237=megawatt nuclear generating plant located in Waterford, Connecticut. Millstone Unit 3, which began operation in .1986, is the newest and largest of the Millstone Station's three nuclear units, one of which is retired from service. The principal owner. and operator of Millstone Station is Dominion Nuclear Connecticut, Inc., a subsidiary of Virginia-based Dominion Resources, Inc. Dominion Connecticut owns 93.4% of Millstone Unit 3. The Nuclear Regulatory Commission (NRC) on November 28, 2005 ,approved Dominion Nuclear.Connecticut's request fora 20 -year operating license extension for Millstone's Unit 3 reactor. The.license now expires in November, 2045. RMLD signed two different projects to finance Millstone #3, Mix 1 and Project 3. The debt service associated vrith these -projects will be paid off in 2014 & 201:8 respectively. The RMLD has a LOU . agreement for 0.404% of the units which equates to approximately 4.6 Mws... Quick Facts — Seabrook Station Location On -Line Date Fuel Principal Owner/Operator Total Capacity New York Power Authority (NYPA) Waterford, Connecticut 1986 Nuclear — Pressurized Water Reactor Dominion Nuclear Connecticut, Inc. 1,237 megawatts The RMLD receives inexpensive hydroelectric power from the NYPA. RMLD receives capacity and energy from this contract. The Massachusetts Department of Public Utilities (DPU) has appointed MMWEC as the administrator of this contract. The current contract,expires in 2025. Hydro -Quebec Interconnection The Hydro -Quebec Interconnection is an approximate 2000 Mw, direct current electric transmission line connecting central New England with the Canadian utility Hydro Quebec. Construction of the U.S. portion of the interconnection, which stretches from Groton/Ayer, in Massachusetts to the Canadian border in northern Vermont, was a joint effort of many New England utitilies. The RMLD receives approximately 4.5 Mws of capacity from this contract. BP Energy 'In July, 2013 the RMLD signed a .system power contract with BP Energy that is effective from January 1, 2014 through December 31, 2017. The RMLD receives enery.only from this contract. The amount of energy purchased fluctuates on a monthly basis for both the on -peak and off-peak period. RMLD has secured fixed pricing for this contract. Shell Energy In November, 2014 the RMLD signed a system power contract with Shell Energy that is effective from January 1', 2015 through December 31, 2018. The RMLD receives enery onlyfrom this:contract. The amount of energy purchased fluctuates on a monthly, basis for both the on -peak and off-peak period. RMLD has secured fixed pricing for this contract. Exelon. 1n May, 2015 the RMLD signed a system power contract with Exelon that is effective from January 1, 2016 through December 31, 2019. The RMLD receives energy only from this contract. - The. amount of energy ,purchased fluctuates on a monthly basis for both the:on=peak and: off-peak period. RMLD has secured fixed pricing for this contract. EDF Trading. In June, 2016 the RMLD signed a system power contract with EDF Trading that is effective: from January 1, 2017 through December 31, 2018-. The RMLD receives energy only from this :contract. The :amount of energy purchased fluctuates on a monthly basis for both the on=peak and off-peak period: RMLD has secured fixed pricingiforthis contract. NextEra In. June, 2016 the RMLD-signed a system power contract with NextEra thatis effective from. January 1, 2019 through December, 31, 2020.( -The I�MLD receives. energy only from this ,contract. The amount of energy purchased fluctuates on a monthly basis for both the on -peak and off-peak period. RMLD' has secured fixed pricing for this contract. Swift River Hydro In March, 2011 the.RMLD signed a purchase power agreements with Swift River Hydro LLC for the output of four hydro systems located in Massachusetts that are effective from February1, 201;1 through .January 31, 2026. The. Swift River Trading Company is the. lead' market participant for and represents these hydroelectric generators with a total nameplate capacity of approximately 7 Mws and average annual generation of 25,000 Megawatt -hours per year. These facilities include the Woronoco Hydro facility in Russell, MA, Pepperell .Hydro in Pepperell,, MA; Indian. River Power -Supply in Russell, MA; and Turners Falls Hydro in Turners Falls, MA. Each of these facilities is owned by a special purpose entity, e.g., the. Woronoco facility is owned by. Woronoco Hydro'LLC. The four facilities are managed. by the :Swift River Trading Company, LLC as the lead market participant for each of the..facilities. Dr. Peter Clark is the manager -of the: Swift River Trading Company. RMLD is the only. buyer. i • Pepperell Hydro: 15 year term beginning on February 1, 2011 and ending January 31, 2026. RMLD is purchasing all of the products produced by or attributable to the facility. The facility has a nameplate capacity of 1.9 Mws. The products include, but are not limited to, Energy, Installed Capacity, Ancillary Services, Renewable Energy Certificates and Environmental Attributes (to the extent not included in the RECs). The contract price for these products is $100/Mwh for the first year, escalated 2.25% thereafter. • Woronoco Hydro:. 15 year term beginning on February 1, 2011 and ending January 31, 2026. RMLD 'is purchasing all of the products produced by or attributable to the facility. The facility has a nameplate capacity of 2.7 Mws. The products include, but are not limited to, Energy, Installed Capacity, Ancillary Services, Renewable Energy Certificates and Environmental Attributes (to the extent not included in the RECs). The contract price for these products is $100/Mwh for the first year, escalated 2.25% thereafter. The facility is not currently qualified for FCM. Until the Seller qualifies the facility for FCM the contract price is reduced by $5.00/Mwh. • Turners Falls Hydro: 15 year term beginning on February 1, 2011 and ending January 31, 2026. RMLD is purchasing all of the products produced by or attributable to the facility. The facility has a nameplate capacity of 1 Mw.. The products include, but are not limited to, Energy, Installed Capacity, Ancillary Services, Renewable Energy Certificates and Environmental Attributes (to the extent not included in the RECs). The contract price for these products is $100/Mwh for the first year, escalated 2.25% thereafter. The facility is not currently qualified for FCM. Until the Seller qualifies the facility for FCM the contract price is reduced by $5.00/Mwh. • Indian River Hydro: 15 year term beginning on February 1, 2011 and ending January 31, 2026. RMLD is purchasing all of the products produced by or attributable to the facility. The facility has a nameplate capacity. of 1.4 Mws. The. products include, but are not limited to, Energy, Installed Capacity, Ancillary Services, Renewable Energy Certificates and Environmental Attributes (to the extent not included in the RECs). The contract price for these products is $100/Mwh for the first year, escalated 2.25% thereafter. The facility is not currently qualified for FCM. Until the Seller qualifies the facility for FCM the - contract price is reduced by $5.00/Mwh_ Collins Hydro In August, 2013 the RMLD signed'a purchase power agreements with Swift River Hydro LLC..for the output of Collins Hydro located in between. Ludlow and Wilbraham Massachusetts. The contract with- Swift River Hydro is effective from September :1, 2013 through August 31, 2028. The RMLD receives enery.on ly from this contract. The average annual generation is approximately 5,667 megawatt -hours per year. Pioneer Hydro In,August,'2013 the,RMLD signed a purchase power agreernents.with, Ware River Power Inc. for the output of Pioneer Hydro located in Ware, Massachusetts. The contract for Pioneer Hydro is effective from September 1, 2013 through August 31, 2028. The RMLD receives enery only from this contract., The average annual. .generation is approximately 4,480 megawatt -hours. per year. Hoisery Mills Hydro In.March, 2014 the RMLD signed a purchase power agreements with Silver Street Hydro Inc. for the output of Hosiery Mills located in Hillsborough, New Hampshire. The contract for Hosiery Mills Hydro is effective from March 1, 2014 -through February 28, 2034. The RMLD receives enery only from this contract. The average annual generation is approximately 2,046 megawatt -hours per year. Aspinook Hydro In. August, 2016 the RMLD signed a purchase. power agreements with Aspinook Hydro Inc. for the output of Aspinook Hydro located in Connecticut. The contract is effective from August, 2016 through August, 2017. The RMLD receives enery only from -this . contract. The average annual, generation is approximately 0,300 megawatt -hours per 'year. Saddleback Ridge Wind In December, 2013 the RMLD signed a.purchase. power agreement with Saddleback Ridge Wind., LLC for the output of Saddleback Ridge Wind located in Carthage, Maine. The contract for Saddleback Ridge Wind is effective from January 1,, 2015 through December 31, 2035. The RMLD receives enery plus all attributes this .contract. The. average annual generation is estimated to be approximately 15,820 megawatt -hours per year. Jericho Wind In November, 2014 the RMLD signed a purchase power agreements with Jericho, Power, LLC for the output of Jericho Wind located in Berlin, New Hampshire. The contract for Jericho Wind is for 20 years. The project went Commercial December, 2015. The.RMLD receives energy plus all attributes from this contract. The.average annual generation is estimated to be approximately 10,788 megawatt -hours per year. One Burlington - Solar In March, 2015 the .RMLD signed a purchase.power agreement with CREECA Energy LLC for the output of 2,000 kW AC solar array located at One Burlington Ave., Wilmington, Massachusetts. The solar array went on-line in -November, 2015. The term of the contract for One Burlington is effective for ten years. The average annual generation is estimated to be approximately 3,450 megawatt -hours per year. N 2018 BUDGET SUMMARY PURCHASE POWER EXPENSE % of % of % of. % of PROJECT CAPACITY Total TRANSMISSION Total ENERGY Total TOTAL. Total NUG. MIX 91 MILLSTONE 837,319 3.4% 18,546 0.1% 170,392 0.5% 1,026,258 1.5% NUC. MIX #1 SEABROOK 79,155 0.3% 172 0.00/0 16,836 0.1% 96,163 0.1% PROJ _#3 MILLSTONE 625,937 2.6%- 13,165 0.1% 130,654 0.4% 769,756 1.1% PROJ. #4 SEABROOK 1,458,551 6.0% 3,897 0.0% 413,248 1.3% 1,875,655 2.7% PROJ. #5 SEABROOK 184,754 0.8% 481 0.0% 50,990 0.2% 236,224 0.3% NYPA 206,061 0.8% 634,410 4.7% 146,228 0.5% 986,699 1.4% STONYBROOK PEAKING PROJECT 674,476 2.8% 26,237 0.2% 43,520 0"1% 744,233 1.1% STONYBROOK INTERMEDIATE PROJECT 1,850,722 7.6% 33,534 0.2% 3,713,91.4 11.9% 5,598,171 8.1% ISO -NE 17,008,334 69.5% 12,882,374, 94.6%� 813,175 2.6.% 30,703,883 44.3% NEMA CONGESTION 120,000 0.4% _ 120,000 0.2% BRAINTREE WATSON 1,600,050 6.56/6 469,176 1.50/0, 2,069,226 3.0% NEXTERA 0 0.0% 1,900,043 61% 1,900.043 2.7% HYDRO QUEBEC SUPPORT SERVICES .(49.200) -0.2% 0,0% (49,200) -0.1% , REMVEC 10,200 0.0% 10,200 0.0% EXELON 4,811,021 15A% 4,811,021 6.9%. BP ENERGY 4,495,789. 14.4% 4,495,789 6.5% SHELL ENERGY 6,703,864 21.4% 6,703,864 9.7% SWIFT RIVER HYDRO - -2,739,879 8.8% 2,739,879 3.9% SUMMIT HYDRO 605,475 1.9% 605,475 0.9% COLLINS HYDRO, 457.707 1.5°% 457,707 0.7% PIONEER HYDRO 361,870 1.2% 361,870 0.5% HOSIERY MILL HYDRO 147,406 0,5% 147,406 0.2% SADDLEBACK WIND 1,502,900 4.8% 1,502,900 2.2% JERICHO WIND 1,186,680 3.8% 1,166.680 1.7% ONE BURLINGTON SOLAR 242,888 0.8%% 242,888 .0.4% COOP/ RESALE 25,200 0.1% 25200 0.0% TOTAL 24,476,160 100.0% 13,612,815 100.0% 31,279,017 100.0% 69,367,991 100.0%. NYPA . New York Power Authority ISO -NE. Independent System Operator - New England ' REMVEC: Rhode Island, Eastern Massachusetts, Vermont, Energy Control NEMA: Northeast Massacnusetts RMLD PROCUREMENT REQUEST REQUIRING BOARD APPROVAL ATTACHMENT 2 RMLD/r T t Reading Municipal Light Department ��/�j1 a, � RELIABLE POWER FOR 4ENERArInNs �cf 230 Ash Street P.O. Box 150 Reading, MA 01867-0250 Tel: (781) 944-1340 Fax: (781) 942-2409 . Web: www.tmld.com May 4„ 20. l7 Town of Reading Municipal. Light Board Subject: IFP 2017-40 Current Limiting Reactors at Substation 3 Pursuant to M.G.L c. 164 §'56D, on April 11, '2017, a bid invitation was placed as a legal notice in the Middlesex East section of the Daily'I'imes Chronicle and on RMLD's website requesting scaled proposals for Current Limiting Reactors at Substation 3. An invitation for proposals was sent to the following nine companies: E.L. Flowers & Associates Graybar Hasgo Power Sales . Irby Power Sales Group Power Tech.dba UPSC Robinson Sales Shamrock Power 1Vesco Sealed proposals were received from du-ee companies: Graybar, Irby turd WESCO. The sealed' proposals were. publicly opened and read aloud at 11:00 a.m., Nlay 4, 2017, in the Town of Reading Municipal Light Department's Audio Visual Spurr Room, 230 Ash Street, Reading, Massachusetts. The proposals were reviewed, analyzed and evaluated by staff and recommended to the General Manager. Move that proposal 201740 for: Current Limiting Reactors at Substation 3 be awarded to: WESCO for $145,440 pursuant to Chapter 164 § 56D on the recommendation of the General Manager, The FYIS'Capital Budget amount for these items is 5250.000, r `r Nick levy Hamid Jafta Coleen O'Brien File: laid/ FY171201740 for: Currunt I..inliting Re:wculrs at Substation Z Current Limiting Reactor for Substation 3 IFP 2017-40 Meet CeHirred Exceptions to Total Net Specification Specification Firm All forms Check or stated bid Authorized Bidder Manufacturer Delivery Dale 'Unit Cost Oly Cost r�uirement Data Sheets Price filled out Bid Bond requirements signature WESCO yes yes yes yes yes no yes Item 1 Trench 18-20 weeks ARO 572,720.00 2 $145,440.00 Irby Item 1 Graybar Item 1 I rench 18-20 weeks ARO $72.722.50 2 $145,445.00 GE Alstam 24-26 creeks ARO 574,659.00 2 $149.318.00 yes yes no yes Exemptions as stated: yes yes no yes Exemptions as stated: yes yes yes See Trench quote 21711993 rev .00 for details yes yes yes Please see GE's technical deviation pages 7017.40 CL Reactor Analysis Page t BOARD MATERIAL AVAILABLE BUT NOT DISCUSSED From: Trey Schultz To: RMLD Board Members Grouo CC: Jeanne Foti Subject: AP Warrants and Payroll Date: Tuesday, May 09, 2017 9:44:00 AM Good morning, There were no questions on the April 14, April 21, April 28, or May 5, 2017 AP Warrants. There were no questions on the April 18 or.May 1, 2017 Payroll. This message will be included in the packet for tomorrow's Board Meeting. Tracy Schultz Executive Assistant Reading Municipal Light Department 230 Ash Street. Reading. MA. 01867 Tel: 781.942.6489