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Home My WebLink About2017-05-24 RMLD Citizens Advisory Board Minutesor IscoaQ°� Town of Reading Meeting Minutes Board - Committee - Commission - Council: RMLD Citizens Advisory Board Date: 2017-05-24 Time: 6:30 PM Building: Reading Municipal Light Building Address: 230 Ash Street Purpose: General Business Attendees: Members - Present: 1010 JAN 3 G ' A..% 581 Location: Winfred Spurr Audio Visual Room Session: Open Session Version: Final Mr. George Hooper, Chair (Wilmington); Mr. Dennis Kelley, Secretary (Wilmington); Mr. Jason Small (North Reading) Members - Not Present: Mr. Neil Cohen (Reading) Others Present: Mr. Philip Pacino, Board of Commissioners Ms. Coleen O'Brien, Ms. Wendy Markiewicz, Ms. Jane Parenteau, Ms. Kathleen Rybak, Mr. Mayhew Seavey, Principal, PLM Electric Power Engineering / Minutes Respectfully Submitted By: Mr. Dennis Kelley, Secretary Topics of Discussion: 1. 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. Proposed Rate Adjustment - J. Parenteau, Director of Integrated Resources and M. Seavey, Principal, PLM Materials: Electric Rate Design Strategies Presentation to the Citizens'Advisory Board May 24, 2017; and FY18 - Proposed Rate Increase- Comparative Rates Present/Proposed (handout) In follow-up to the April 12th CAB presentation on the Cost of Service Study, Mr. Seavey presented the recommended Electric Rate Design Strategies. Ms. Parenteau distributed and reviewed the FY2018 - Proposed Rate Increase - Comparative Rates Present/ Proposed spreadsheet, which illustrates the impact of the recommendations on the various rate classes. Ms. Parenteau noted that usage will have an impact depending on the rate class. To clarify the "phasing -in" of the rate, in order to get to the zero percent rate of return (for residential), a 4.4% increase in the residential base rate is needed. That 4.4% increase is spread over five years. For FY18, the increase in base rates only (distribution rates) is 1%. The purchase power cost (a pass-through) represents 60% of the bill and increases approximately 5%. Ms. O'Brien stated that RMLD will aim to align all subsidies over the next three -five years. The Board will vote on FY18 rates, with a strategy in place to correct the subsidies over time. RMLD must also adjust for solar generation - the concept of a customer being completely off the grid is not a reality when RMLD must maintain the Page 1 1 poles and the structures. We must constantly move to see how the franchise is being impacted by what's happening in the industry. Therefore, we move it in a granular way so that when things start happening we won't require a large increase. Chair Hooper asked Commissioner Pacino if he could provide any input from the Board of Commissioners. Commissioner Pacino stated that the Board has gotten a presentation, but has not taken any action. At the meeting, the Board was generally in favor of moving forward with the recommendations. No one spoke negatively against it. Mr. Kelley expressed concern with the increases, but acknowledged there is not much control over the pass-through costs. Ms. O'Brien asked Ms. Parenteau to address the factors that led to the redesign. Ms. Parenteau stated that the Department is undertaking long-term strategic planning. Debt service from the long-term contracts, (Seabrook and Millstone) is scheduled to be paid off in 2018, which will result in approximately $lm worth of decreases. Capacity is peaking, but is projected to go down. Transmission costs continue to climb significantly. Fuel costs are projected to come down and stabilize. Natural gas is at an all-time low. We cannot look at any one "bucket" in isolation. When you put all the factors together, the hope is that in the next 1-3 years there will be either relatively minor increases or some decreases depending on the overall picture. We are trying to be transparent by unbundling our rates and looking at the different components. Chair Hooper stated that he understood the need for the rate adjustments completely, but noted that this has an impact across the board; the rate payers are seeing residential increases and paying the tax dollars for the schools that are going up as well. The group discussed how the rates compare to both the IOUs and other municipals. Chair Hooper then called for a motion. Mr. Small made a motion that the RMLD Citizens' Advisory Board recommend to the RMLD Board of Commissioners the adoption the rates MDPU numbers #269, 270, 271, 272, 273, 274, 275 and 276 effective July 1, 2017, on the recommendation of the General Manager, seconded by Mr. Kelley. Hearing no further discussion, motion carried 3:0:1 (3 in favor, 0 opposed, 1 absent). 3. Selection of Vice Chair - G. Hooper, Chair Item tabled until all members are present. 4. Northeast Public Power Association (NEPPA) Annual Conference - G. Hooper, Chair The group discussed the availability of CAB members to attend this conference. Mr. Small made a motion to approve all four CAB members to attend the 2017 NEPPA Conference, seconded by Mr. Kelley. Hearing no further discussion, motion carried 3:0:1 (3 in favor, 0 opposed, 1 absent). 5. Next meeting - G. Hooper, Chair The next CAB meeting was scheduled for June 21, 2017, at 6:30 PM. 6. Executive Session - G. Hooper, Chair Mr. Kelley made a motion that the Citizens' Advisory Board go into Executive Session based on Chapter 164, Section 47D exemption from public records and open meeting requirements in certain instances, to discuss competitively sensitive issues and return to regular session for the sole purpose of adjournment, seconded by Mr. Small. Hearing no further discussion, motion carried 3:0:1 (3 in favor, 0 opposed, 1 absent), by a poll of members present: Mr. Small aye; Chair Hooper, aye; Mr. Kelley, aye. Mr. Cohen was not present Page 1 2 t: 7. Adjournment - G. Hooper, Chair Mr. Kelley made a motion to adjourn the Citizens' Advisory Board meeting, seconded by Mr. Small. Hearing no further discussion, motion carried 3:0:1 (3 in favor, 0 opposed, 1 absent). The Citizens' Advisory Board Meeting adjourned at 8:02 PM. As approved January 17, 2018 Page 1 3 FY 2018 - Proposed Rate Increase Comparative Rates Present/Proposed Residential 500 kWh 750 kWh 1000 kWh 500 kWh 750 kWh 1000 kWh Present$76.81 $4,013.87 $113.29 $149.78 P_ d $81.89 $120.78 $159.69 Difference $5.07 $7.49 $9.91 %Change 6.60% 6.61% 6.62% Cost per kWh Present $0.15363 $0.15105 $0.14978 Gast per kWh Propo ed $0.16'377 $0..16}104 $0.15969 Residential Low Income Residential Time of Use 500 kWh 750 kWh 1000 kWh Present $72.98 $109.46 $145.94 $4,013.87 Proposed 77.80 16.69 1-5 :60 $12 1.78 Difference $4.81 $7.24 $9.66 $1,268.53 %Change 6.60% 6.61% 6.62% Cost per kWh Present Cost per kWh Present $0.14596 $0.14594 $0.14594 0.1 46 Dost per Wh Proppsed $0.15559 $0. 5559 $0.15560 Commercial 500 kWh 1000 kWh Small Medium Large Present Present $2,119.85 $11,097.19 $45,094.22 Proposed Pro used $2,201..52 $11 49'3.49 $46,938,69 Difference Difference $81.67 $396.30 $1,844.67 %Change %Change 3.85% 3.57% 4.09% Cost per kWh Present Cost per kWh Present $0.14020 $0.14563 $0.12540 Gus p r kWh Proposed Mon per kWh Propose 0. 4560 $0.1 083 0. 053 I Street Lights (Formula Rate) 1 Reading Lynnfield North Reading Wilmington Present $6,372.12 $2,727.23 $3,800.18 $5,580.14 Propo ed $ ,381.3 $2,7341.17 3,805 68 5,588 0 Difference $9.21 $3.94 $5.49 $8.06 %Change 0.14% 0.14% 0.14% 0.14% Cost per kWh Present $0.13841 $0.13841 $0.13841 $0.13841 Eos per ,Wh Propo ed $0. 3861 0.1386 Residential Time of Use Note: Proposed Rate Structure to Take Effect July 1, 2017. All Rate Classes Include the Fifteen Percent Prompt Payment Discount except Street Lights HANDOUT: May 24, 2017, CAB Meeting School Rate 1000 kWh 1500 kWh 2000 kWh Present $135.06 $199.56 $264.89 $4,013.87 Proposed $34- .47 $225.05 $284.6'3 $12 1.78 Difference $10.41 $15.49 $19.74 $1,268.53 %Change 7.71% 7.76% 7.80% Cost per kWh Present Cost per kWh Present $0.13506 $0.13304 $0.13244 0.1 46 Gast perk h Proposed $0.14547 $0.14336 $0..142:32 Residential Time of Use Low Income 500 kWh 1000 kWh 1500 kWh 2000 kWh Present $128.99 $193.48 $257.97 Difference Proposed $139:15 $208.73 $278.31 4.24% Difference $10.17 $15.24 $20.34 %Change 7.88% 7.88% 7.88% Cost per kWh Present $0.12899 $0.12899 $0.12899 Gus p r kWh Proposed $0.13915 $013915 $013'316 Industrial Time of Use Small Medium Large Present $29,566.36 $59,080.75 $599,380.25 Proposed $35.,171.37 $ ,250.9 $62 62.93 Difference $1,605.01 $5,170.18 $30,182.68 %Change 5.43% 8.75% 5.04% Cost per kWh Present $0.11069 $0.12067 $0.10877 Gos per WhProposed Street Lights (LEDs) Reading Lynnfield North Reading Wilmington Present $3,296.69 $916.01 $1,357.02 $3,047.09 Proposed 53,3 6.68932.74 $1381.99 $3,102.570 Difference $59.99 $16.74 $24.97 $55.41 %Change 1.82% 1.83% 1.84% 1.82% Cost per kWh Present $0.34567 $0.34423 $0.34190 $0.34587 ao pe Wh Proposed 0. 19 $0 -505- 0. 48 :9 $0. 5 6 Note: Proposed Rate Structure to Take Effect July 1, 2017. All Rate Classes Include the Fifteen Percent Prompt Payment Discount except Street Lights HANDOUT: May 24, 2017, CAB Meeting School Rate Small Medium Large Present $4,013.87 $11,780.64 $25,156.98 Propo ed 4,192:03 $12 1.78 526,4, Difference $178.16 $591.14 $1,268.53 %Change 4.44% 5.02% 5.04% Cost per kWh Present $0.13066 $0.12210 $0.12177 Gost per kWh Proposed 0.1 46 $0.1 823 0.12791 Co-op Resale 500 kWh Present $74.17 Proposed M.773 Difference $3.15 % Change 4.24% Cost per kWh Present $0.14834 ostpe 7, 1 Proposed $0.1 4.63 C:\Users\krybak.RMLD\AppData\local\Microsoft\Windows\INetCache\Content.Outlook\1M4%711T\Compamtive Rates FY18_scenario3 1/29/2018