Loading...
HomeMy WebLinkAbout2018-03-15 RMLD Board of Commissioners Minutes uFA o�yc Town of Reading Meeting Minutes i" : V y t v. .�. rra � S� i ,sJ9°1NC0R4��P� F-Z A a�� ��`� �, M1�i. Board - Committee - Commission - Council: iU rn 2I AM 9: 14,., e RMLD Board of Commissioners Date: 2018-03-15 Time: 07:30 PM Building: Reading Municipal Light Building Location: Winfred Spurr Audio Visual Room Address: 230 Ash Street Session: Open `Session Purpose: General Business Version: Final Attendees: Members - Present: Philip B. Pacino, Chair David Hennessy, Vice Chair Tom O'Rourke, Commissioner John Stempeck, Commissioner Dave Talbot, Commissioner Members - Not Present: Others Present: RMLD Staff: Coleen O'Brien, General Manager Hamid Jaffari, Director of Engineering and Operations Jane Parenteau, Director of Integrated Resources Wendy Markiewicz, Director of Business, Finance, and Technology Joyce Mulvaney, Communications Manager Tracy Schultz, Executive Assistant Citizens' Advisory Board: Jason Small, Vice Chair Town of Reading Board of Selectmen: John Arena, Chair Barry Berman, Vice Chair Dan Ensminger, Secretary Town of Reading Finance Committee: Peter Lydecker,'Chair Vanessa Alvarado, Member Mark Dockser, Member Minutes Respectfully Submitted By: Philip B. Pacino, Secretary Pro Tem Topics of Discussion: Call Meeting to Order Chair Pacino called the meeting to order. Chair Pacino announced that the meeting is being videotaped at the RMLD office at 230 Ash Street, for distribution to the community television stations in North Reading, Lynnfield, and Wilmington. Live in Reading. Chair Pacino read the RMLD's Code of Conduct. Page 1 1 Public Comment Mr. Cohen did not have any comment. Mr. Berman stated that, as a ratepayer, he wants to thank the RMLD for its tireless and tremendous work to restore power through three storms. Mr. Berman stated that he has friends outside the service territory who still do not have electricity and thanked the RMLD for a job well done. Approval of Board Minutes(Attachment 1) Mr. O'Rourke made a motion, seconded by Vice Chair Hennessy, to approve the January 25, 2018 minutes. Motion Carried. 5:0:0. RMLD Board Member Attendance at Citizens' Advisory Board Meeting Report-Chair Pacino Chair Pacino reported on the February 28th CAB meeting. The CAB approved minutes, received an update from Ms. O'Brien about the LED streetlight program. Ms. Markiewicz presented the financial report and Mr. 011ila made a presentation on the North Reading energy storage project. There was general discussion regarding the payment to the Town. Chair Pacino stated that the members of the CAB requested that the Board of Commissioners schedule their meetings from now until December. Report of the Chair- Chair Pacino Meeting of the Sub-Committee on the Payment to the Town of Reading Chair Pacino remarked that all the Board members attended that meeting. A presentation was made of what is being referred to as a 'trial balloon.' Mr.Talbot clarified that there was no vote taken by the Sub-Committee or the Board of Commissioners. Mr. Dockser asked what the next steps are. Chair Pacino replied that the Sub-Committee will meet on Wednesday, March 21 at 5:30 and the members will exchange ideas and get input from all the different parties and go from there. Mr. Ensminger explained that the Board of Selectmen wanted to follow up and answer Mr. O'Rourke's question about the defined need for the money. Mr. O'Rourke if there isn't an obligation to pay,which the White Paper dealt with, is there something driving the request for more money? Mr. Ensminger stated that there is a real financial need and then read the Instructional Motion that was passed at the Town Meeting in April. Mr. Ensminger stated that the intent was a more predictable stream of money. State aid has been cut and the CPI has been low. Mr. Ensminger thanked the RMLD for its storm response. General Manager's Report-Ms. O'Brien RMLD Response to March 2, 2018, March 7-8, 2018, and March 13,2018 Storms Mr. Jaffari stated that 3,000 customers lost service during the first storm. Most of them had power restored within three hours. Because of the second storm, approximately 6,000 customers lost power between Wednesday night and Thursday. Most of the service was restored by Saturday. Mutual aid was activated on Thursday. Mr. Jaffari stated that RMLD is grateful for the help and that thanked the crews, staff, and customers for being patient. Mr. Jaffari explained that on a typical day RMLD receives about 321 calls. The first storm resulted in 2,167 calls;the second storm in 5,388 calls, and the third storm in 317 calls. Mr. Jaffari announced that a new outage management system will be operational by April 16. Currently, RMLD receives calls and runners go out and investigate each call.They then report Page 1 2 General Manager's Report-Ms. O'Brien z RMLD Response to March 2,2018,March 7-8, 2018, and March 13, 2018 Storms back if a crew needs to 'be dispatched. The outages are prioritized according to safety concerns and then restoring the main lines, followed by the secondaries. Mr. O'Rourke thanked Ms. Mulvaney for doing a great job communicating storm updates. Report on APPA Legislative Rally Ms. O'Brien thanked the Board for letting her attend the APPA Legislative Rally in Washington D.C. Ms. Parenteau also attended this year. It which provides an opportunity for municipals to appeal to their state representatives. This year's appeal addressed short and long-term planning for capacity, transmission, and fuel in this area. It's important to speak on behalf of public power; a lot of the time investor-owned utilities can drown out municipals. Quarterly Updates: Organizational & Reliability Reports-Ms. O'Brien and Mr. Jaffari(Attachment 2) Ms. O'Brien explained that the organizational study is down to a handful of things; the majority are ongoing or completed. RMLD will be assessing employee culture in the fall of this year. Ms. Mulvaney will be distributing internal and external surveys to measure customer satisfaction. The other item on the list is an asset management/work order system. A few vendors have come in. Ms. Markiewicz has it in the budget for next year. It will make RMLD more efficient. Mr. O'Rourke stated that he and Vice Chair Hennessy both have survey experience and offered up their collective expertise if assistance is needed. Mr. O'Rourke then asked what the headcount of the RMLD is, and what it should be. Ms. Markiewicz answered that RMLD currently has 73 employees. Ms. O'Brien explained that she's hesitant to give a target number. As each Department is looked at and as employees retire, they may not be replaced with the exact job description. Currently, there are seven or eight vacancies. There are three more divisions to look at. Integrated Resources Division - Ms. Parenteau Power Supply Report-January 2018(Attachment 3) Ms. Parenteau reported on January 2018 Purchase Power. The first week and a half of January was extremely cold. ISO had a lack of Liquid Natural Gas (LNG), which caused some of our oil units to run, including the Stonybrook Plant. To compare, last year the fuel cost for that unit was less than $10,000. This year, our fuel cost for the some plant was over$975,000. 2018 was colder than 2017 and 2016. kWh sales in January 2016 were 48.8 million. 56.8 million in in January 2017, and 58.2 million in January 2018. When it's significantly colder, people use more electricity, hence their electric bills being higher. Our deferred fuel cash reserve allowed us to flatten the curve for our customers so that they don't see price spikes. We had anticipated taking $600,000 out of the deferred fuel cash reserve. In January we took out about$1.3 million. We will replenish that. Mr.Stempeck clarified that the fund works as a buffer,which Ms. Parenteau verified. Ms. Parenteau then presented a snapshot of ISO markets, day ahead and real time. 2017 was relatively uneventful. 2018 was more volatile and consistently higher than 2017. The real time prices were just below$300 a megawatt hour during the cold snap and remained relatively high the rest of the month. Vice Chair Hennessy asked what percentage of RMLD customers have electric heat? Ms. Parenteau answered: less than 10 percent. Mr. Hennessy asked why then, was there such a spike in kWh? Ms. Parenteau explained that furnaces are running, more people are utilizing electricity via motors and fans, and space heaters are being used. Financial Report- January 2018 - Ms.Markiewicz - (Attachment 4) Ms. Markiewicz reported on the financials through January 31, 2018, which covers the first seven months of FY 2018. Unrestricted cash is $250,000. The restricted cash is up about $6 million but that's mostly due to the pension trust that has been added onto the books. Receivables are up Page 1 3 I I Financial Report- January 2018 - Ms. Markiewicz - (Attachment 4) $1.6 million from last year and are 94 percent current. Capital assets have increased $3.7 million from the prior year. Ms. Markiewicz reviewed the twelve restricted cash funds.To determine the operating cash in relation to monthly expenses, Ms. Markiewicz took the total operating expense for the year, and divided it by 12. Using that formula, RMLD generally has two months to one-and-a-half months reserved. RMLD is not the same as a regular business. Mr.Stempeck stated that RMLD has been here for over one hundred years because it's a conservative organization. It is an excellent-way to handle the volatility of the business. Ms. Markiewicz then looked at net income and the rate of return. Net income has consistently been reinvested in capital infrastructure for the past five years. $8.6 million was allocated for capital projects; $3.5 million has been spent.There is a little over$5 million left in capital funds. We're $510,000 under budget for collecting on base revenue, which is almost two percent down, currently. We have under-collected approximately $1.8 million in power expenses. RMLD should have 41.6 percent remaining as of January 31, 2018. We are currently under budget. Engineering and Operations Report-January 2018 - Mr. Jaffari (Attachment 5) Mr. Jaffari stated that $132,888 was spent on capital construction in January, bringing the YTD total to$805,795. Total capital spending in January was $756,962, bringing the YTD total to $3,493,520. There is $4,192,001 remaining. When this is spent the total will be $7,685,521. Mr. Jaffari stated that great progress is on routine maintenance. 71 tree;spans in January for a total of 128 through December. Mr. Jaffari listed the underground subdivision upgrades that are completed or are in progress. Mr. Stempeck asked if RMLD uses its own crews for underground work. Mr. Jaffari answered yes, the crews have been trained in underground splicing. However, RMLD has limited crews so they need to be augmented with contractors for the next 10 to 15 years. Mr. Jaffari then reviewed the double poles: Lynnfield has seven transfers and two pole butts to remove; North Reading has 12 transfers and 35 pull poles; Reading has 24 pole transfers and 59 pull poles; Wilmington has 32 pending transfers and four pull poles. The ;large number of poles shows that RMLD is upgrading; it's a good thing. Mr. Jaffari explained that outages caused by major storms are not included in the reliability indices; they are taken out of the calculations because it skews the numbers. It is unfair to compare the reliability of a system that suffered massive storm damage and one that did not. Every other outage is included. Mr. Jaffari explained that the graph showing outage causes is for the month of January, so recent storms aren't reflected in the numbers. RMLD Procurement Requests Requiring Board Approval - Mr. Jaffari(Attachment 6) IFP 2018-37 Pole Mounted Transformers Mr. Jaffari stated that the Invitation for Proposals was sent to 14 vendors. Four responses were received. Overhead transformers are heavily used during system upgrades. Mr.Stempeck made a motion,seconded by Mr. O'Rourke, that proposal 2018-37 for Pole Mounted Transformers be awarded to: WESCO Distribution, Inc. for$91,628.00 and Graybar Electric for$9,040.00, for a total of $100,668.00, pursuant to M.G.L. c. 164 Section 56D on the recommendation of the General Manager. Page 1 4 RMLD Procurement Requests Requiring Board Approval - Mr. Jaffari(Attachment 6) _ IFP 2018-39 Capacitor Banks Mr.Jaffari explained that the Invitation for Proposals was sent to 16 vendors.Two responded.The next lowest was WESCO. Capacitor banks are used to regulate voltage and minimize system losses. Mr.Stempeck made a motion, seconded by Mr. O' Rourke, that proposal 2018-39 for Capacitor Banks be awarded to: Graybar Electric for$24,314.60, pursuant to M.G.L. c. 164 Section 56D on the recommendation of the General Manager. Adjournment Mr.Stempeck made a motion,seconded by Mr. O'Rourke, to adjourn the Regular Session. A true cop"f the RMLD Board of Commissioners minutes as apTacino, majority of the Commission. P ilipecretary Pro Tem RMLD Board of Commissioners Page 1 5 1 READING MUNICIPAL LIGHT DEPARTMENT BOARD OF COMMISSIONERS REGULAR SESSION THURSDAY, MARCH 15, 2018 APPROVAL OF BOARD MINUTES JANUARY 25, 2018 ATTACHMENT 1 READING MUNICIPAL LIGHT DEPARTMENT BOARD OF COMMISSIONERS MEETING 230 Ash Street Reading,MA 01867 January 25,2018 Start Time of Regular Session: 7:30 p.m. End Time of Regular Session: 9:54 p.m. Commissioners: Phillip B. Pacino,Chair-Absent Dave Talbot, Commissioner Dave Hennessy, Vice Chair-Secretary Pro Tem John Stempeck,Commissioner-Absent Tom O'Rourke,Commissioner Staff: Coleen O'Brien, General Manager Wendy Markiewicz, Director of Business/Finance Hamid Jaffari, Director of Engineering and Operations Joyce Mulvaney,Communications Manager Jane Parenteau, Director of Integrated Resources Tracy Schultz, Executive Assistant Citizens Advisory Board: Public: George Hooper,Chair John Rogers,39 Tower Hill Road, Reading Call Meeting to Order Vice Chair Hennessy called the meeting to order and announced that the meeting is being videotaped at the RMLD'office at 230 Ash Street, for distribution to the community television stations in Reading, North Reading, Lynnfield,and Wilmington. Opening Remarks Vice Chair Hennessy read the RMLD Board of Commissioners' Code of Conduct and invited Reading resident . John Rogers to make his public comments. Public Comment Mr. Rogers explained that he had e-mailed a letter about RMLD's solar policy to the Board of Commissioners.Mr. Rogers stated that he has a solar system installed on his home and that he would like to make three main points: RMLD's solar policy needs to be updated;fixing it is in RMLD's best interest;fixing it is easy. Mr. Rogers handed out a packet containing excerpts from other municipals' solar policies and explained that Ipswich does a monthly reconciliation that rolls over and then trues up the use and the generation once a year. Mr. Rogers stated that RMLD's meters instantaneously true up and the capacity value his system provides isn't factored in. Mr. Rogers asked the Commission to consider Ipswich's policy or have a monthly true up. Mr.Talbot asked what changing the solar policy would add up to for Mr. Rogers.What's the difference when the meter reconciles in real time? Mr.Rogers stated that his solar panels generate energy when he's not using power (during the day) and he is getting paid 5 cents a kWh. Ms. Parenteau stated that when the rate was set up it anticipated the current meters. One channel measures everything a customer purchases from RMLD,one measures how much a customer generates.The rate needs to be modified, but there are pluses and minuses on both sides. RMLD's rate is in the middle right now. RMLD strives to be cost of service. Mr. Rogers stated that the value of solar assessment is better for utility than homeowner. Most utilities reconcile on an annual basis. Reading does minute to minute.There are 96 residential customers on solar.The next step is for people to install batteries and completely migrate off the grid. Vice Chair Hennessy thanked Mr. Rogers for his presentation. Approval of Board Minutes(Attachment 1) Mr.Talbot made a motion,seconded by Mr. O'Rourke that the Board approve the meeting minutes of September 14,2017 and November 9,2017. Motion Carried. 3:0:0 RMLD Board Member Attendance at Citizens'Advisory Board Meeting Report-Mr. O'Rourke Vice Chair Hennessy thanked Chair Hooper for attending the meeting. Chair Hooper thanked Mr. Rogers for his passionate presentation and stated that Mr. Rogers can also reach out to the CAB. Mr.O'Rourke stated that the CAB meeting included discussions about a more automated and more responsive outage management system,the storm liaison, and the second Solar Choice program.There was an update on the organizational study.Mr. O'Rourke asked if it would have been appropriate forward Mr. Rogers' letter to the CAB. Ms. O'Brien explained that it was addressed to herself and the Board. Ms. O'Brien stated that she can talk to the Chairman as correspondence is received. General Manager's Report-Ms. O'Brien Regarding Mr. Rogers' presentation, Ms. O'Brien stated that RMLD must look through each component of the solar rate. Ms. O'Brien stated that she wrote the one in Danvers and knows what other municipals have. Ms. O'Brien said that she was asked to go back to the APPA Legislative Rally in Washington D.C. this year. It's important to advocate for municipals retaining local control and making it clear that municipals are not the some as investor-owned utilities. Additionally, RMLD was awarded the $1 million-dollar grant for the five- megawatt battery storage unit. Ms. O'Brien has been asked to attend and requested to go to the trading floor and attend NextEra Energy Marketing Public Power's Summit. It is a training and a conference. It will be career development training. Mr. O'Rourke made a motion, seconded by Mr. Talbot, that the Board approve Ms. O'Brien's travel to, and attendance at, the NextEra Energy Marketing Public Power Summit, in Manalapan, Florida, from February 4 to February 7,2018. Motion Carried. 3:0:0 Mr. O'Rourke made a motion, seconded by Mr. Talbot, that the Board approve Ms. O'Brien's travel to, and attendance at,the APPA Legislative Rally in Washington DC, from February 25 to March 1,2018. Motion Carried. 3:0:0 Ms. O'Brien stated that she will report back to the Board following her attendance'at both events. RMLD Response to January 4,2018 Storm Ms. O'Brien stated that two commercial customers lost power during the storm. The taps burnt out and the outages were isolated. RMLD was properly prepared for the storm. However, not much happened. Integrated Resources Division Community Engagement-Ms.Mulvaney Ms.Mulvaney announced that RMLD held the award ceremonies for the Elementary School Art Contest winners. Mr. O'Rourke commented on the maturity of the elementary school students. Ms.;Mulvaney stated that the art contest for the high school students will kick off with informational sessions in April. Ms. Mulvaney stated that the previous evening a Save Energy and Money informational session was held for residential customers. Over forty customers attended. Ms. Mulvaney announced that the RMLD website is going to be updated to improve navigation and streamline content. 2 - f , Power Supply Report-November 2017-Ms. Parenteau (Attachment 3) Ms. Parenteau reported on the renewable components of November 2017 purchase power. In 2013 hydro represented about 5.75 percent of RMLD's overall portfolio. In 2017, hydro accounted for 13 percent. RMLD has negotiated several contracts with developers of hydro.The percentage of the portfolio fluctuates because hydro is weather dependent and seasonal. RMLD had no wind in its portfolio prior to 2014. RMLD has since signed two contracts.Wind comprised 3 percent of the portfolio in 2015 and 4.5 percent in 2017.There was no solar in RMLD's portfolio in 2013. In 2015, a 2-megawatt solar installation was put in Wilmington. There have been two other projects since then, making solar 0.47 percent of the portfolio. Vice Chair Hennessy asked which area of renewables does Ms. Parenteau foresee the most growth in? Ms. Parenteau answered that wind has the largest potential for growth.Hydro projects are limited,as is solar capacity. All renewables in the portfolio in November 2017 totaled 18 percent. Mr. O'Rourke asked if the new battery storage unit will count as a renewable source of power. Ms. Parenteau answered that it will,and that it is slated for installation in December of this year. Mr.Talbot asked does selling RECs impact what we can say we're using in terms of renewables. Ms. Parenteau replied that's why she has been careful not to call any of these power sources 'green.' Renewable is the type of generation. Ms. Parenteau stated that she doesn't want to mislead public; she is talking about renewable projects. Mr. Talbot stated that the ability to call yourself green transfers with the Renewable Energy Certificates (RECs). Mr.Talbot asked what the true percentage is without the RECs. From eighteen percent to what? Ms. Parenteau clarified that she was not referring to renewable energy certificates,just the types of projects. Chair Pacino called in to express his regret that he was unable to attend the meeting,due to both travel and an illness. Chair Pacino then disconnected the call. The discussion continued regarding whether 'renewables' can be referred to as 'renewables' when the RECs have been sold.Mr. Rogers gave a history of RECs. Proposed Rate for Solar Choice Program(Attachment 3) Ms.Parenteau explained that RMLD is looking to refile its Solar Choice rate.The updated rate has been presented to the CAB.Solar Choice I is fully subscribed with 500 customers and has been online since June 2017. After the first seven months, the savings are greater. The customer cost dropped from $5 to $1. Modifications have been made to the rate so that the first six months is$5 and then each project gets trued up on the actual performance. Solar Choice II is online, 560 customers have signed up,which is 85 percent of the 660 available slots. Customers can sign up for one share in multiple projects. RMLD is adding Solar Choice Business for small and medium commercial customers.It bundles five solar choice shares,and will be$25 a month for the first six months,at which point it will be trued up. Solar Choice Business Plus will be available for large commercial customers, with an individual customer's share not to exceed 25 percent of the total project, subject to availability. These are all good changes. Mr.Talbot made a motion,seconded by Mr. O'Rourke,that the Board of Commissioners adopt the Solar Choice Rate, MDPU No.278, dated to be effective February 1,2018, on the recommendation of the General Manager. Motion Carried. 3:0:0 Financial Report- November 2017-Ms.Markiewicz- (Attachment 4) Ms.Markiewicz reported on the first five months of FY 18 ending November 30.The statement of net assets shows RMLD is doing well. Receivables are 95 percent current, which is up 3 percent from last year, and it is currently moratorium. Ms. Parenteau stated that Ms. Hanifan has been diligently working with customers. RMLD's sources of capital are currently$6.7 million,of that,RMLD has spent$2.2 million,leaving capital funds of almost$4.5 million. If you look at last year,the depreciation fund has decreased.That is due to the capital projects.YTD as compared to the budget profit and loss statement shows purchase power transmission capacity is under collected by about 3 i Financial Report- November 2017-Ms.Markiewicz- (Attachment 4) $224,000,which Ms. Parenteau compensates for monthly. If you look at the actual as compared to the budget for the first five months of the year we should have 58.3 percent of the budget remaining. 62.4 percent remains of the budget. It could be due to the timing of projects and payments. Ms. Markiewicz then reviewed the $94- million-dollar budget,stressing how many of RMLD's costs are fixed. Engineering and Operations Report-November 2017-Mr.Jaffari(Attachment 5) Mr. Jaffari reported on November 2017 and explained that lots of projects start in the spring and go into the summer. That's when most of the spending occurs. That will bring the plant value up. RMLD is making great progress on capital projects. Non-project capital improvements totaled $134,946 in November, bringing YTD to $546,813.Total Capital Spending in November was$584,377, bringing YTD to$2,236,964.The remaining balance is $5,448,557. Expenditures will start to increase in April. RMLD is making great progress on routine maintenance such as pole inspections.The feeder inspection program was being improved,so there were no inspections done between October and December. Porcelain cutout replacements are ninety-one percent completed. Mr.Jaffari stated that at a meeting earlier in the week,a North Reading Selectman remarked that they were very pleased with the tree trimming program. Mr. Jaffari continued, explaining that RMLD went from a five-foot span to an eight-foot span. It has improved reliability. Vice Chair Hennessy asked how do you know that there haven't been as many tree incidents? Mr. Jaffari answered that they are being tracked. GIS also tracks the tree growth. The trimming has been around main feeders and laterals. It is a 5-year cycling program.Most utilities trim a ten-foot span. Now that the GIS system is completed, the underground subdivisions are: being prioritized. There are approximately 150 communities that need equipment upgrades. It will increase reliability. Mr.Jaffari then moved on double poles and the NJUNS report. Lynnfield has 5 pending transfers. Reading has 21 pending transfers and 57 pull poles for a total 78. North Reading has a total of 33, made up of 13 transfers 20 pull poles. Wilmington has 31 pending transfers and 4 pull poles,for a total of 35. RMLD tries to move ten a week. Mr.Jaffari then stated that RMLD is doing great reliability-wise. RMLD is below regional and national averages. Mr.Jaffari then presented a bar chart of outage causes,rather than the customdry pie chart. CAB Chair Hooper asked if the tree wardens of each town are contacted before tree trimming occurs.Mr.Jaffari replied that a map is posted before anything is trimmed. Prior to the trimming,the RMLD tree liaison contacts the wardens to let them know where RMLD will be. RMLD Procurement Requests Requiring Board Approval - Mr.Jaffari(Attachment 6) IFP 2018-26 - 35kV Underground Cable Mr.Jaffari explained that these are the underground cables between Station 4 arid Station 5. RMLD sent notice to 22 potential bidders and received five responses.Wesco. In 2011 the cable cost$11.87 a foot. Now it costs $10.05 a foot. Mr.O'Rourke made a motion,seconded by Mr.Talbot,that proposal 2018-26 for 35kV Underground Cable be awarded to:WESCO Distribution for$60,300.00, pursuant to M.G.L. Chapter 164§ 561D on the recommendation of the General Manager. Motion Carried. 3:0:0. General Discussion The future dates of the CAB and Board meetings were discussed.There is a Sub-Committee meeting on the Payment to the Town of Reading on February 13, 2018. 4 Executive Session At 9:25 p.m. Mr. O'Rourke made a motion, seconded by Mr. Talbot, that the Board go into Executive Session to discuss trade secrets or confidential, competitively-sensitive or other proprietary information in the course of activities conducted by a governmental body as an energy supplier under a license granted by the Department of Public Utilities,and to consider the purchase of real property and return to Regular Session for the sole purpose of adjournment. Vice Chair Hennessy called for a poll of the vote: Mr. O'Rourke: Aye;Mr.Talbot:Aye;Vice Chair Hennessy: Aye. Motion Carried 3:0:0. Adjournment Mr. O'Rourke made a motion,seconded by Mr.Talbot,to adjourn the Regular Session. A true copy of the RMLD Board of Commissioners minutes as approved by a majority of the Commission. David Hennessy,Vice Chair,Secretary Pro Tem RMLD Board of Commissioners 5 QUARTERLY UPDATE: ORGANIZATIONAL & RELIABILTY REPORTS ATTACHMENT 2 J •� v MARCH,, 2018 STORM DATA V - A HOURLY AREA OUTAGES u L� MARCH 7, 2018 5000 4000 - - - - N o°3000 �Readmg N -•Jorth Reading -wimington ;�"-2000;, � �� iiynafieltl -Total outaas. ism 19 23 25: 2$: 31' 3a' 37,' r• HoursSriceStorm StarteS' � co PHONE CALLS 6000 30 5000 25 m 4000 20 0 s a- c U' a. 3000 o -a 2000 ;1Q; t 3/1— i ��?olai Calls 321 2162 53$$;. 317 ,Jj !t ��EmptoYecA�mvenng Pho�res12- ;. . - - i 010-60s -609i N+swenng 06'ift' c a , WEBSITE AND TWITTER FOLLOWING DURING MARCH STORMS • IN FEBRUARY, 2018 RMLD HAD 1,437 TWITTER FOLLOWERS • 3/2 (STORM #1) GAINED 187 TWITTER FOLLOWERS: 1,624 3/8 (STORM #2) GAINED 607 TWITTER FOLLOWERS: 2,231 • 3/1.3 (STORM #3) GAINED 30 TWITTER FOLLOWERS: 2,249 WEBSITE;SESSIONS: 3/2 (STORM #11: 1,,761 3./8 (STORM #2;):5;677 3/13 -- POWER SUPPLY REPORT JANUARY 2018 ATTACHMENT 3 INTEGRATED RESOURCES Board of Commissioners Meeting Reporting for January, 2018 Jane Parenfeau, Director of Integrated Resources March 15, 2018 • • • • • • • • 1 1 $250. 1 - i i i 200.00 ------.__....-______-. ___.__..._._--- --._.__.._..__.---_-._____._.__________..______-..____.__._-_.__.-___....-._____..___.-___._._..__-.---_--___.._-------__r_._._ _ v v � tw a c $150.00 a� I U Mai $100.00 1 ` I a co $50.00 -- .._..------�.... --------- --._,-_ _�. - - - - ---- - - -------- _ --- _- -- - --- - - - - ------- - - --- I i i $0.00 - -- --- --- - -- - - - --- — - ---- --- ----- .. -- --- - ---- --- -- --------- -- - -- - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 29 29 30 31 ; Days of January ®2017 ®2018 To: Coleen O'Brien From:. aureen McHugh,Jane Parenteau Dat. March 5,2018 Subject: Purchase Power Summary—January,2018 Energy Services Division(ESD)has completed the Purchase Power Summary for the month of January,2018. +j ENERGY f The RMLD's total metered load for the month was 60,158,734 kWh,which is a 4.29% increase from the January,2017 figures. Table 1 is a breakdown by source of the energy purchases. Table 1 Amount of Cost of %of Total Total$ $as a Resource Energy Energy Energy Costs % (kWh) ($/Mwh) Millstone#3 3,723,907 $6.38 6.17% $23,752 0.62% Seabrook 5,909,413 $5.92 9.79% $34,984 0.92% Stonybrook Intermediate 6,482,558 $128.95 10.74% $835,928 21.93% Shell Energy 9,311,200 $57.98 15.42% $539,842 14.16% NYPA 2,648,679 $4.92 4.39% $13,032 0.34% Nextera 2,812,000 $80.41 4.66% $226,111 5,93% ISO Interchange 9,191,505 $87,96 15.23% $808,501 21.21% Nema Congestion - $0.00 0.00% -$374,821 -9.83% Coop Resales 20,917 $140.83 0.03% $2,946 0.08% EDF 5,507,200 $61.32 9.12% $337,707 8.86% Hydro Projects* 3,534,934 $66,40 5.86% $234,703 6.16% Braintree Watson Unit 943,693 $216.20 1.56% $204,027 5.35% Saddleback/Jericho Wind 2,365,263 $48.01 3.92% $113,554 2.98% One Burlington&Comm.Solar 117,771 $72.27 0.20% $8,511 0.22% Exelon 7,065,600 $93.76 11.70% $662,481 17.38% Stonybrook Peaking 733,657 $191.16 1.22% $140,246 3.68% Monthly Total 60,368,297 $63.14 100.00% $3,811,502 100.00% 'Pepperell, Woronoco,lndian River,Turner Falls,Collins,Pioneer,Hosiery Mills,Aspinook Hydro Table 2 breaks down the ISO interchange between the DA LMP Settlement and the RT Net Energy for the month of January,2018. Table 2 Amount Cost %of Total Resource of Energy of,Energy Energy (kWh) ($/Mwh) ISO DA LMP* 5,778,619 $40.80 9,57% Settlement RT Net Energy** 3,412,887 $312.49 5.65% Settlement ISO Interchange 9,191,505 $87.96 15.23% (subtotal) "Independent System Operator Day-Ahead Locational Marginal Price JANUARY 2018 ENERGY BY RESOURCE i 1 Stonybrook Pk. Jericho Wind 1.22"/0 1.48% Millstone 03 j - 6.37% Solar Projects 1 Exeion ��i Seabrook Saddleback ;i I Stonybrook Inter 10.%4% I C i EDF 9.12% Hydro Projects Shefl Ener 5.86%, 15.42% coiip resales ISO Interchange 15.23% j Nexlerti , NYPA 4.66% L CAPACITY The RMLD hit a demand of 108,096 kW,which occurred on January 2,at 6 pm. The RMLD's monthly UCAP requirement for January, 2018 was 222,777 Ms. i Table 3 shows the sources of capacity that the RMLD utilized to meet its requirements. i Table 3 { Source Amount(kWs) Cost($IkW-month) Total Cost$ %of Total Cost Millstone#3 4,950 24.70 $122,284 5.80% Seabrook 7,909 18.89 $149,439 7.08% Stonybrook Peaking 24,980 1.94 $48,455 2.30% Stonybrook CC 42,925 3.31 $141,898 6.73% NYPA 0 0.00 -$16,680 -0.79% Hydro Quebec 0 0 -$76,680 -3.63% I Braintree Watson Unit 0 0.00 $55,118 2.61% ISO-NE Supply Auction 142,013 11.87 $1,685,928 79.91% Total 222,777 $9.47 $2,109,761 100.00% i i 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 $23,752 $122,284 $146,036 . 2.47% 3,723,907 0.0392 Seabrook $34,984 $149,439 $184,423 3.11% 5,909,413 0.0312 Stonybrook Intermediate $835,928 $141,898 $977,826 16.51% 6,482,558 0.1508. Hydro Quebec $0 -$76,680 -$76,680 -1.30% - 0.0000 Shell Energy $539,842 $0 $539,842 9.12% 9,311,200 0.0580 NextEra/EDF $226,111 $0 $226,111 3.82% 2,812,000 0.0804 * NYPA $13,032 -$16,680 -$3,649 -0.06% 2,648,679 -0.0014 ISO Interchange $808,501 $1,685,928 $2,494,429 42.13% 9,191,505 0.2714 i Nemo Congestion -$374,821 $0 -$374,821 -6.33% - 0.0000 EDF $337,707 $0 $337,707 5.70% 5,507,200 0.0613 Hydro Projects $234,703 $0 $234,703 3.96% 3,534,934 0.0664 Braintree Watson Unit $204,027 $55,118 $259,145 4.38% 943,693 0.2746 w Saddleback/Jericho $113,554 $0 $113,554 1.92% 2,365,263 0.0480 Burlington 8 Community Solar $8,511 $0 $8,511, 0.14% 117,771 0.0723 Coop Resales $2,946 $0 $2,946 0.05% 20,917 0.1408 Exelon Energy $662,481 $0 $662,481 11.19% 7,065,600 0.0938 Stonybrook Peaking $140,246 $48,455 $188,700 3.19% 733,657 0.2572 Monthly Total $3,811,502 $2,109,761 $5,921,263 100.00% 60,368,297 0.0981 * Renewable Resources once RECs are sold 14.36% *Renewable Resources;per RMLD Board Policy,any RECs are sold to offset energy costs for all customers. RENEWABLE ENERGY CERTIFICATES (RECs) Table 5 shows the amount of banked and projected RECs for the Swift River Hydro II Projects through January, as well as their estimated market value. I Table 5 RECs Summary Period- July 2017-January 2018 Banked Projected Total Est. RECs RECs RECs Dollars Woronoco 309 946 1,255 $12,549 I Pepperell 461 1,190 1,651 $16,510 Indian River 51 489 540 $5,400 I Turners Falls 90 422 512 $5,120 Saddleback 1,408 5,904 7,312 $73,120 Jericho 865 4,012 4,877 $48,770 'Sub total. 3il84 12,963 I-OX47 RECs Sold $0 0 $0 Grand Total 3,184 12,963 16,147 $161,469 TRANSMISSION The RMLD's total transmission costs for the month of January,2018 were$1,176,742. This is an increase of 37.03% from the December transmission cost of$858,764. In January, 2017 the transmission costs were$1,019,500. Table 6 f Current Month Last Month Last Year Peak Demand(kW) 108,096 104,381 105,335 Energy(kWh) 60,368,297 58,902,789 58,270,115 Energy($) $3,811,502 $2,979,091 $2,911,543 Capacity($) $2,109,761 $2,021,055 $1,477,200 j Transmission($) $1,176,742 $858,764 $1,019,500 Total $7,098,005 $5;858,910 $5,408,243 FINANCIAL REPORT JANUARY 2018 ATTACHMENT 4 i Town of Reading, Massachusetts Municipal Light Department Statement of Net Assets January 31,2018 2018 2017 ASSETS Current: Unrestricted Cash $16,103,670.32 $15,850,224.24 Restricted Cash 28,649,043.38 22,605,998.32 Restricted Investments 1,329,906.48 1,345,663.06 , Receivables,Net 9,930,110.92 8,285,113.20 Prepaid Expenses 848,921.46 1,937,910.40 Inventory 1,570,899.03 1,568,809.91 Total Current Assets 58,432,551.59 51,593,719.13 Noncurrent: Investment in Associated Companies 212,427.92 26,993.75 Capital Assets,Net 77,092,631.75 73,414,409.00 Total Noncurrent Assets 77,305,059.67 73,441,402.75 Deferred Outflows-Pension Plan 4,135,078.00 6,338,218.00 TOTAL ASSETS 139,872,689.26 131,373,339.88 f LIABILITIES Current I Accounts Payable 8,994,863.35 6,939,310.44 Accrued Liabilities 734,767.56 710,032.79 Customer Deposits 1,157,139.00 986,734.14 Customer Advances for Construction 1,313,671.28 1,110,355.53 Total Current Liabilities 12,200,441.19 9,746,432.90 Non-current Accrued Employee Compensated Absences 3,150,134.05 3,257,809.00 Net OPEB Obligation 138,068.00 0.00 Net Pension Liability j13,076,538.00 8,833,549.00 Total Non-current Liabilities 16,364,740.05 12,091,358.00 Deferred Inflows-Pension Plan 714,888.00 883,172.00 TOTAL LIABILITIES 29,280,069.24 22,720,962.90 NET POSITION ' Invested in Capital Assets, Net of Related Debt 77,092,631.75 73,414,409.00 Restricted for Depreciation Fund 5,287,898.22 4,863,316.41 Restricted for Pension Trust 5,683,014.26 0.00 Unrestricted 22,529,075.79 301374;651.57 TOTAL NET POSITION 110,592,620.02 108,652,376.98 Total Liabilities and Net Assets $139,872,689.26 $131,373,339.88 1 i i I i i i Town of Reading,Massachusetts Municipal Light Department Schedule of Cash and Investments January 31,2018 2018 2017 Unrestricted Cash Cash-Operating Fund $16,100,170.32 $15,847,224.24 Cash-Petty Cash 3,500.00 3,000.00 Total Unrestricted Cash 16,103,670.32 15,850,224.24 Restricted Cash Cash-Depreciation Fund 4,717,650.82 4,863,316.41 Cash-Construction Fund 443,037.57 0.00 Cash-Town Payment 2,299,494.19 2,217,056.31, Cash-Deferred Fuel Reserve 3,956,575.32 4,667,343.23 Cash-Rate Stabilization Fund 6,937,922.43 6,852,727.56 Cash-Pension Trust 5,683,014.26 0.00 Cash-Uncollectible Accounts Receivable 200,000.00 200,000.00 Cash-Sick Leave Benefits 1,857,927.31 1,944,534.17 Cash-Hazard Waste Reserve 750,000.00 150,000.00, Cash-Customer Deposits 1,157,139.00 986,734.14; Cash-Energy Conservation 646,282.48 724,286.50 Total Restricted Cash 28,649,043.38 22,605,998.32 Investments i Sick Leave Buyback 1,329,906.48 1,345,663.061 Total i 1 i j i i I I f I I Town of Reading, Massachusetts Municipal Light Department Capital Funds January 31,2018 SOURCE OF CAPITAL FUNDS: DEPRECIATION FUND BALANCE 7/1/17 $ 2,406,969.15 CONSTRUCTION FUND BALANCE 7/1/17 2,500,000.00 ADDITIONAL FUNDS ADDED TO CONSTRUCTION FUND BALANCE 12/31/17 1,200,000.00 INTEREST ON DEPRECIATION FUND FY 18 35,414.46 DEPRECIATION TRANSFER FY 18 2,511,826.94 TOTAL SOURCE OF CAPITAL FUNDS 8,654,210.55 USE OF CAPITAL FUNDS: ADDITIONS TO PLANT THRU JANUARY 2018 TOTAL USE OF CAPITAL FUNDS 3,493,522.16 GENERAL LEDGER CAPITAL FUNDS BALANCE 1/31/18 $ 5,160,688.39 v 1 i 1 3 if i I Town of Reading,Massachusetts Municipal Light Department Statement of Revenues,Expenses and Changes in Fund Net Assets; 1 January 31,2018 Month Month Year to Date Year to Date Percent Operating Revenue Current Year Last Year Current Year Last Year Change Base Revenue $2,338,527.08 $2,082,018.94 $15,736,968.78 $15,604,822.26 0.8% Fuel Revenue 2,730,249.25 3,149,834.16 17,240,127.64 20,279,370.80 (15.0%) Purchased Power Capacity 3,625,660,83 2,904,975.54 23,510,301.26 20,735,924.07 13.4% Forfeited Discounts 89,217.95 76,354.02 523,862.52 533,226.80 (1.8%) Energy Conservation Revenue 57,103.94 55,706.82 395,852.73 406,649.34 (2.7%) NYPA Credit _ (118;534.20) (121,364.18) (613 164,92) (655,911.36) (6.5%) Total Operating Revenue 8,722,224.85 8,147,525.30 56,793,948.01 56,904,081.91 (0.2%) Expenses Power Expenes: 547 Purchased Power Fuel Expense 3,815,602.60 2,911,543.18 18,525,019.00 20,087,288.22 (7.8%) 555 Purchased Power Capacity 2,142,038.41 1,513,015.67 14,804,088.18 11,785,879.65 25.6% 565 Purchased Power Transmission 1,176,741.85 1,019,499.88 8,634,969.81 8,110,789.47 6.5% Total Purchased Power 7,134,382.86 5,444,058.73 41,964,076.99 39,983,957.34 5.0% Operations and Maintenance Expenses: 580 Supervision and Engineering 52,680.81 (2,253.32) 335,709.19 235,847,09 42.3% 581 Station Supervison 14,461.20 13,099.46 88,752.50 81,764.82 8.5% 581 Line General 87,331.18 66,244.90 432,659.95 376,950.96 14.8% 582 Control Room _ 37,613.63 32,181.22 243,079.58 283,064.57 (14.1%) 585 Street Lighting 24,168.94 8,312.22 57,190.74 140,780.93 (59.4%) 586 Meter General 32,469.79 21,408.05` 155,123.30 123,314.04 25.8% 588 Materials Management 56,698.86 43,161.34 310,119.24 256,925.41 20.7% 590 Maintenance of Structures and Equipment 44,565.70 36,771.69 270,075.92 273,861.81 (1.4%) 593 Maintenance of Lines-Overhead 120,518.19 231,710.44 912,932.20 1,130,871.43 (19.3%) 594 Maintenance of Lines-Underground 285.59 35,755.43 52,947.04 189,480.78 (72.1%) 595 Maintenance of Line Transformers 10,270.75 1,725.00 71,554.96 20,112.89 255.8% Total Operations and Maintenance Expenses 481,064.64 488,116.43 2,930,144.62 3,112,974.73 (5.9%) General&Administration Expenses: 902 Meter Reading 6,595.56 3,026.87 23,818.96 16,062.35 48.3% 903 Customer Collections 156,142.48 84,708.69 968,684.92 946,694.65 2.3% 904 Uncollectible Accounts 12,500.00 12,500.00 87,500.00 87,500.00 0.0% 916 Energy Audit 39,986.79 46,224.35 278,232.39 289,026.29 (3.7%) 916 Energy Conservation 45,000.79 82,920.66 352,513.40 399,781.08 (11.8%) 920 Administrative and General Salaries 113,576.59 76,169.73 651,359.75 553,552.59 17.7% i 921 Office Supplies and Expense 27,255.32 7,700.59 178,456.67 158,803.42 12.4% 923 Outside Services 68,266.39 (41,380.76) 492,326.70 296,093.84 66.3% 924 Property Insurance 27,958.80 7,184.86 196,852.73 173,471.16 13.5% 925 Injuries and Damages 4,732.68 9,233.24 30,253.93 35,995.54 (16.0%) 926 Employee Pensions and Benefits 432,620.17 762,737.55 1,981,782'.88 2,283,236.68 (13.2%) 930 Miscellaneous General Expense 4,609.66 11,742.36 68,857.89 85,161.52 (19.1%) 931 Rent Expense 13,445.63 16,398.29 109,524:67 100,569.81 8.9% 933 Transportation Expense 21,895.17 0.00 173,599.23 0.00 (100.0%) 933 Transportation Expense Capital Clearing (21,530.00) 0.00 (196,633.20) 0.00 100.0% 935 Maintenance of General Plant 15,538.24 13,326.59 213,992.26 182,262.45 17.4% 935 Maintenance of Building&Garage 57,887.92 47,655.24 291,365'93 297,081.86 (1 9%) Total General&Administration Expenses 1,026,482.19 1,140,148.26 5,902,486;11 5,905,293.24 (0.0%) i I I { Town of Reading,Massachusetts j Municipal Light Department Statement of Revenues,Expenses and Changes in Fund Net Assets January 31,2018 1 i Month Month Year to Date Year to Date Percent Current Year Last Year Current Year LastlYear Change Other Operating Expenses: I r ! 403 Depreciation 358,832.42 341,775.67 2,511,826.94 2,392,429.69 5.0% 408 Voluntary Payments to Towns 856,620.67 118,000.00 1,617,730.69 821,372.00 97.0% Total Other Expenses 1,215,453.09 459,775.67 4,129,557.63 3,213,801.69 28.5% Operating Income (1,135,157.93) 615,426.21 1,867,682.66 4,688,054.91 (60.2%) Non Operating Revenue(Expenses): { I419 Interest Income 20,810.73 11,645.97 135,993.09 85,118.76 59.8% i 419 Other 282,347.32 202,725.97 641,758.49 458,880.70 39.9% x 426 Return on Investment to Reading (201,647.50) (198,722.33) (1,411,532.50) (1,391,056.33) 1.5% 431 Interest Expense (6,698.97) (182.39) (9,341.1,6) (3,108:30) 200.5% Total Non Operating Revenue(Expenses) 94,811.58 15,467.22 (643,122:08) (850,165.17) (24:4%) Change in Net Assets (1,040,346.35) 630,893.43 1,224,560.58 3,837,889.74 (68.1%) i Net Assets at Beginning of Year 109,368,059.44 104,814,487.24 109,368,059.44 104,814,487.24 4.3% Ending Net Assets 1,8% f 1i i I I I I f I I I i 11 1 Town of Reading,Massachusetts Municipal Light Department Statement of Budgeted Revenues,Expenses and Changes in Fund Net Assets January 31,2018 Actual Budget Remaining Remaining Operating Revenue Year to Date Full Year Budget Budget% Base Revenue $15,736,968.78 $26,337,621.00 $10,600,652.22 40.2% Fuel Revenue 17,240,127.64 32,491,810.00 15,251,682.36 46.9% Purchased Power Capacity 23,510,301.26 38,088,978.00 14,578,676.74 38.3% Forfeited Discounts 523,862.52 800,000.00 276,137.48 34.5% Energy Conservation Revenue 395,852.73 675,000.00 279,147.27 41.4% NYPA Credit (613,164.92) (1,200,000.00) (586 835.08) 48.9% Total Operating Revenue 56,793,948.01 97,193,409.00 40,399,460.99 41.6% Expenses Power Expenses: 547 Purchased Power Fuel Expense 18,525,019.00 31,291,810.00 12,766,791.00 40.8% 555 Purchased Power Capacity 14,804,088.18 24,476,161.00 9,672,072.82 39.5% 565 Purchased Power Transmission 8,634,969.81 13,612,817.00 4,977,847.19 36.6% Total Purchased Power 41,964,076,99 69,380,788.00 27,416,711.01 39.5% Operations and Maintenance Expenses: 580 Supervision and Engineering 335,709.19 764,615.00 428;905.81 56.1% 581 Station Supervisor 88,752.50 130,662.00 41;909.50 32.1% 581 Line General 432,659.95 596,007.00 163,347.05 27.4% 582 Control Room 243,079.58 466,783.00 223,703.42 47.9% 585 Street Lighting 57,190.74 156,893.00 99,702.26 63.5% 586 Meter General 155,123,30 212,909.00 57,785.70 27.1% 588 Materials Management 310,119.24 458,328.00 148,208.76 32.3% 590 Maintenance of Structures and Equipment 270,075.92 494,936.00 224,860.08 45.4% 593 Maintenance of Lines-Overhead 912,932.20 1,980,611.00 1,067,678.80 53.9% 594 Maintenance of Lines-Underground 52,947.04 197,002.00 144,054.96 73.1% 595 Maintenance of Line Transformers 71,554.96 300,000.00 228,445.04 76.1% Total Operations and Maintenance Expenses 2,930,144.62 5,758,746.00 2,828,601.38 49.1% i General&Administration Expenses: 902 Meter Reading 23,818.96 37,461.00 13,642.04 36.4% 903 Customer Collection 968,684.92 1,869,393.00 900,708.08 48.2% 904 Uncollectible Accounts 87,500.00 150,000.00 62,500.00 41.7% 916 Energy Audit 278,232.39 509,232.00 230,999.61 45.4% 916 Energy Conservation 352,513.40 952,565.00 600,051.60 63.0% 920 Administrative and General Salaries 651,359,75 1,017,151.00 365,791.25 36.0% 921 Office Supplies and Expense 178,450.67 350,000.00 171,549.33 49.0% 923 Outside Services 492,329.70 759,191.00 266,861.30 35.2% 924 Property Insurance 196,852.73 427,200.00 230,347.27 53.9% 925 Injuries and Damages 30,253.93 52,613.00 22,359.07 42.5% 926 Employee Pensions and Benefits 1,981,782.88 3,000,437.00 1,018,654.12 34.0% 930 Miscellaneous General Expense 68,857.89 179,215.00 110,357.11 61.6% 931 Rent Expense 109,524.67 212,000.00 102,475.33 48.3% 933 Transportation Expense 173,599.23 381,116.00 207,516.77 54.4% 933 Transportation Expense Capital Clearing (196,633.20) (301,596.00) (104,962.80) 34.8% 935 Maintenance of General Plant 213,992.26 281,880.00 67,887.74 24.1% 935 Maintenance of Building&Garage 291,365.93 666,457.00 375,091.07 56.3% Total General&Administration Expenses 5,902,486.11 10,544,315.00 4,641,828.89 44.0% Town of Reading,Massachusetts Municipal Light Department Statement of Budgeted Revenues, Expenses and Changes in Fund Net Assets January 31,2018 Actual Budget Remaining Remaining Year to Date Full Year Budget Budget% Other Operating Expenses: 403 Depreciation 2,511,826.94 4,362,000.00 1,850,173.06 42.4% 408 Voluntary Payments to Towns 1,617,730.69 1,500,000.00 (117,730.69) (7.8%) Total Other Expenses 4,129,557.63 5,862,000.00 1,732,442.37 29.6% Operating Income 1,867,682.66 5,647,560.00 3,779,877.34 66.9% Non Operating Revenue(Expenses): 419 Interest Income 135,993.09 150,000.00 14,006.91 9.3% 419 Other Income 641,758.49 890,000.00 248,241.51 27.9% 426 Return on Investment to Reading/Loss on Disposal (1,411,532.50) (2,570,438.00) (1,158,905.50) 45.1% 431 Interest Expense (9,341.16) (2;500.00) 6,841.16 (273'6'/0) Total Non Operating Revenue(Expenses) (643,122.08) (1,532,936.00) (889c815.92) 58.0% Net Income $ 1,224,560.58 $ 4,114,622.00 $ 2,890,061.42 70,2%0 FINANCIAL REPORT MARCH 15, 2018 Operating Cash in Relation to Average Monthly Operating Expenses Actual FY14 — FY17 $18,000,000.00 Budgeted FY18-FY23 2.25 $16,000,000.00 2.15 $14,000,000.00 2.05 $12,000,000.00 1.95 $10,000,000.00 1.85 1.75 $8,000,000.00 1.65 $6,000,000.00 1.55 $4,000,000.00 _ 1.45 $2,000,000.00 1.35 FY14 FY35 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 1.25 wem Operating Cash at Year End �Average Monthly Exp ®Ratio Reinvestment Plan Capital Infrastructure Actual, FY14-FY17 Budgeted FY18-FY23 $14,000,000.00 9,00% 8.00% $12,000,000.00 7.00% $10,000,000.00 6.00% $8,000,000.00 5.00% $6,000,000.00 4.00% 3.00% $4,000,000.00 2.00% $2,000,000.00 1.00 $0.00 0.00% FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 !•Net Income �Capital Projects —ROR% ENGINEERING & OPERATIONS REPORT JANUARY 2018 ATTACHMENT 5 • Eng 'i' neering f Report RMLD Board of Commissioners Meeting ,A' March 15, 2018 ,I P, r January2018 Reporting Period V ;, Hamid Jaffari, Director of Engineering & Operations Engineering & Operations Capital Improvement Projects DESCRIPTION %COMPLETE 100 Distributed Gas Generation Pilot(Demand Management) „ 100% 186,561 (186,561) - - - _ 102 Pad mount Switchgear Upgrade at Industrial Parks 8% 3,560 247,817 196,285 (51,532) 103 Grid Modernization and Optimization Ongoing 135,910 267,454 227,183 - (40,271) 105 New Wilmington Substation 6% 6,117 25,819 650,000 624,181 106 Underground Facilities Upgrades (URDs, Manholes, etc.) On-going 124 124,507 344,725 220,218 107 13.8kV Upgrade (Step-down Areas, etc.) On-going 19,023 65,372 70,851 5,479 108 115 kV Transmission Line Upgrade 50% 115,070 145,02$ 95,098 (49,930) 109 35 kV Underground Cable Upgrade Station 4, 5 and RR ROW 0% - 206,817 206,817 110 4W9 Getaway Replacement -Station 4 100% 131,611;1, (131,611) 111 Substation Equipment Upgrade On-going - 50,218 50,218 112 AMI Mesh Network Expansion Ongoing - 120,311 120,311 116 Transformers & Capacitors On-going 163,364 273,509 560,500 286,991 117 Meter Purchases On-going 15,963 60,000 44,037 125 GIS 100% 18,812 115,614 218,726 103,112 126 Communication Equipment(Fiber Optic) On-going _ 214,629 214,629 130 Remote Terminal Unit (RTU) Replacement -Station 3 100% 27,164 - (27,164) 131 LED Street Lights Upgrade -All Towns 89% 99,923 491,071 1,169,332 678,261 - - - - 133 Station 3: Relay Upgrades and SCADA Integration 100% 20,548 76,103 55,555 137 Pole Line Upgrade-Woburn Street (West to Concord), W 30% 1,200 200,284 199,084 138 Station 3 Reactors 40% 157,992 561,347 403,355 175 Pole Replacement Program On-going i 58,868 209,000 150,132 458 Secondary and Main Replacement Program On-going 6,471 67,669 222,285 154,616 various New-Service Installations(Residential/Commercial/Industrial) ; On-going 14,331. 83,365_ _ _ _1.55,936 72,57.1 Engineering & Operations Routine Capital Construction ® - i Pole Setting/Transfers $37,4571 $132-,233 Overhead/Underground $44,200 $190,880 Protects Assigned as Required $15,274; $93,720 --_ _Volt age_RegWators, LF Pole Damage/Knockdowns- Some Reimbursable • Work was done to repair or replace six (6) poles. $9,217 . $78,832 ;Station Group $1 ,876; $11 ,867 Hazmat/Oil Spills $1 ,965 $1 ,965 Cherokee Lane, W l Porcelain Cutout Replacement Program__.__ ':. Lighting (Street.Light Connections) - $22,472, 'Storm Trouble $8,175, $79,988 Underground Subdivisions (new construction) $663 $68,933 • Martins Landing, Lowell Road, North Reading ;Animal Guard Installation i - $415' Miscellaneous Capital Costs $14,061 $124,490 1 TOTAL 132.8$$ $805.795`. Facilities, IR® and IT Capital Projects/Purchases FY16 REMAINING BUDGE, BALANCE Facilities i 1,2561 82,257' 657,000; 574,74_3 Integrated Resources Division (IRD) 1,813 16,620 35,000~ 18,380 Information Technology (IT)_ ---.---------38,300; 81,717 340,0001 258,283 TOTAL CAPITAL SPENDING YT® (All Divisions) a' BUDGET REMAINING,BALANCE ---- --- $756,962___ __ $3,493,520 - - L - - $7,685,521 ___ --$4,192,001 __ __ Routine Maintenance 1 i .'Transformer Replacement (through December 201 7) Pad mount 28.24% Overhead 18.92% Pole Inspection (as of 3/6/2018) 'L 187 poles have been replaced 172 of 187 transfers have been completed k' Quarterly Inspection of Feeders. (as of 2/13/2018) Inspected Circuits(Jan-Mar): 3W7, 3W8, 3W14, 3W18,4W4,4W6, 4W9, 4W24, 5W4, 5W5, 5W6, s 5W8, 5W9 Manhole Inspection. (through January2018) 961 of-1 ,237 manholes have-been inspected. . Porcelain Cutout Replacement (through January2018) -91%complete_ 246 remaining to be replaced y1 Routine Maintenance (continued)_ ;F Tree Trimming t" Dec: 71 spans YTD: 728 spans through December Substation- Maintenance. } r' Infrared Scanning -through January com plete- no hot spots found Underground Subdivisions Upgrade G, Recent Completed: Crestwood Estates (NR), Aspen Road (NR), Long Hill Lane (NR) In'Progress: Shasta Drive (NR), Westover Drive (LF ), Greenbriar Drive (NR), Great Neck Drive (W), Gandalf Estates"(W), Deerfield Place NR , Cherokee Lane (W) k Double Poles Town of Reading Pole Jurisdiction Ownership: 16,000 (approximately) i� 50% RMLD 50% Verizon f - dstt' C s t o d i a l: Reading — split (see map) , ./�t-�. � UX North Reading - RMLD T� �r 'I ✓ _ jtp�% �E - Mixt 1 �' Lynnfield— Verizon NR JYE .� � t♦ �� t ' Wilmington - VerizonRN <. s� MII i§ I 1 ` ,tt RonGMgStraets 11 Town of Readln r P0100M.' - ., �;C '._ "'�� � RMLD 1 y TELCO - 7 j{[Pf _d.......�_,...�.d�— ...- �.�.a..e_...�_a....e.�-......��....+-....Y..a..._.�-.._ 4._�.__.e..�-,.....e.�_. gym.......—�.�..,..�-._. m�.....a..�.....�,.�........�..e...��.............__..®�.��..�......m_�.��.��n..........._..�..��._..._.�._._�.-.....,-.�.�....-....�.,...�__..�a.�.�.�.._t._�..s._.�.._.�............._..�_......�.a........_...i NJUNS "Next to Go" as of March 6, 2018 NORTREADING WILMINGTON - H_-READING- - - - - - _ -- - - ----- -- - - - -- -- L_YN_ N F_IELD Count of Countof Count of - Ticket Ticket Ticket Countof NTG Member and JobType ;Number Ticket NTGMember and JobType .1 Number OCMCTNR NTG Member and JobType _t Number NTG Member and JobType Number DCMCTNR 15 DComcast Massachusetts 1q DRMLD 38 8LFLDFD6 DComcast Massachusetts TRANSFER 14 DReading Municipal Light Department DLynnfield Fire Department TRANSFER tis TRANSFER 32 TRANSFER 6 DNP3PMA q PULL POLE 4 DNRDGFD 38 Non-participating 3rd Party Attacher- D RMLD 9 D VZNEDR DNorth Reading Fire Department DMassachusetts 41 0-Reading Municipal Light Department TRANSFER 38 TRANSFER 4 DVerizon Massachusetts TRANSFER 7 TRANSFER 37 PULL POLE 2 DRDNGFD4 PULL POLE 4 0-Reading Fire Department DRMLD 47 DVZNESA 5 TRANSFER 4 DWLMFIB 11 9ReadingMunicipalLightDepartment DVerizon Massachusetts DTown of Wilmington TRANSFER 5 TRANSFER 12 ORMLD TRANSFER 83 11 PULL POLE 35 DReading Municipal Light Department o(blank) TRANSFER 24 DWMGNFD 82 Grand Total 20 DVZNEDR7 PULL POLE 59 DWilmingtonFire Department DVerizon Massachusetts TRANSFER 82 TRANSFER 6 DVZNESA 12 O(blank) PULL POLE 1 DVerizon Massachusetts Grand Total 170 O(blank) TRANSFER 10 Grand Total107 PULL POLE 2 0(blank) ,Grand Total 117, REAL® Reliability Indices Minutes SAI DI 2013-2018 Minutes CAI DI 2013-2018 100.00 ----- 94.36 160.00 - - - - - - - - - 90.00 - 80.00 _ 82.88 ®2013 140.00 134.18 ®2013 70.00 120.00 2014 �2Dia 60.00 100.00 �--- --------------- - 50.00 2015 IEEE day threshold 80.00 2015 40-00 2016 IEEE day threshold 60.OD 2016 30.00 -]Lmm- -2017 YTD IEEE day threshold 40.00 --- 2017 - 20.00 2018 YrD IEEE da threshold 20.00 y 3 .74 5 _......___. -_. __ 2018 YTD 10.00 l -a� 0 4 2.15 __-__ -____ -2017 Region Average 0.00 on-2017 Re Avera e 2013-2014-2015-2016-2017-2018 -2017 National Average 2013-2014-2015-2016-2017-2018 6n 8 Average sA1Dl -2017 National Average 493.54 Average CAIDI I;, Total Duration of Customer Irtterrupti ons Total Durationof Ctafo7ner lntenwpta27rs S47DI ( ti's P4 htirrutes)= TotalNwm$era`Custo7ne7slr7te hiss Total 1b51mher of Customers Served t. r Note: The major event(ME)threshold allows autilityJoremove outages that SAIR 2013-2018 exceed the IEEE2.5 beta threshold forev ents.These events could besevere weather,which can lead to unusually long outages in comparison to your 0•90 distribution system's typical outage. 0.80 0.77 t®2013 0.70 0.60 0.65 �2014 40 0.50 X20150.40 i �¢ 0.40 2016 TotallVumberof Custo7mer-IMerruptions 0.30 ` �2017 Total ffiu mber of Customers Ss7ved 0.20 3 0.10 2018 YTD t, 0.00 _ -2017 Region Average I 2013-2014-2015-2016-2017-2018 -2017 National Average "4 Note: Regional and AverageSAIFI i g' national averages have been updated for 2 T Causes of Outages as of January 2018 70 60 57-- 50 — 46 40 - 0 Annual Average 2013-2017 i 30 Date02018 Year to ate 20 10 10 2 2 0 10 0 2 0 0 1 0 0 0 Equipment Tree Wildlife Vehicle Weather Unknown Utility Natural Power Accident Human Supply Error Questions ? RMLD PROCUREMENT REQUESTS REQUIRING BOARD APPROVAL ATTACHMENT 6 R� /(T Reading Municipal Light Department L�/IL RELIABLE POWER POR GENERATIONS 230 Ash Street,P.O.Box 150 Reading,MA 01867-0250 { f� March 7,2018 jTown of Reading Municipal Light Board Subject: IFP 2018-37 Pole Mounted Transformers Pursuant to M.G.L.c. 164§56D,on February 14,2018,a bid invitation was placed as a legal notice in the Middlesex East section of the Daily Times Chronicle requesting sealed proposals for Pole Mounted Transformers. An invitation for proposals was sent to the following fifteen companies: EDI Graybar Electric Hasgo Power IF Gray Stuart C.Irby Company Power Sales Group Power Tech-UPSC Prime Vendor,Inc. Robinson Sales Shamrock Power Sales Inc. Transformer Exchange Ward Transformer Sales Weidmann Electrical Technology WESCO Distribution,Inc. Yale Electric Supply Sealed proposals were received from four companies: Stuart C.Irby Company,Graybar Electric,Howard Industries, Inc.c/o Power Sales Group and WESCO Distribution,Inc. The sealed proposals were publicly opened and read aloud at 11:00 a.m.,February 28,2018,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 2018-37 for Pole Mounted Transformers be awarded to: WESCO Distribution,Inc. for$91,628.00 and Graybar Electric for$9,040.00,for a total of$100,668,pursuant to M.G.L.c. 164 § 56D on the recommendation of the General Manager. The remaining FYI Capital Budget amount($212,000)for Transformers&Capacitors will be used for this purchase. Brian Smith Hamid_Jaffar •Coleen O'Brien File:Bid/FY18/2018-37 Pole Mounted Transformers Pole Mounted Transformers IFP 2018-37 Total Net Awarding Bidder Manufacturer Delivery Date Unit Price 9(y Price Prices WESCO Distribution,Inc. Item 1 25 Wa Single Phase 120/240 Ermco 8-10 weeks $1,084.00 10 $10,840.00 Item 2 112 112 Wa Three Phase 120/208 Ermco 8-10 weeks $4,184.00 6 $25,104.00 25,104.00 Item 3150 Wa Three Phase 1201208 Ermco 8-10 weeks $5,326.00 6 $31,956.00 31,956.00 Item 4 112 112 kVa Three Phase 2771480 Ermco 8-10 weeks $4,057.00 4 $16,228.00 16,228.00 Item 5 150 We Three Phase 2771480 Ermco 8-10 weeks $4,585.00 4 $18,340.00 18,340.00 $102,468.00 $91,628.00 Stuart C.Irby Company Item 125 Wa Single Phase 120/240 ABB 12-14 weeks $1,338.00 10 $13,380.00 Item 2 112 1/2 Wa Three Phase 120/208 ABB 12-14 weeks $5,454.00 6 $32,724.00 Item 3 150 Wa Three Phase 120/208 ABB 12-14 weeks $5,882.00 6 $35,292.00 Item 4112 1/2 Wa Three Phase 277/480 ABB 12-14 weeks $4,539.00 4 $18,156.00 Item 5150 Wa Three Phase 277/480 ABB 12-14 weeks $5,174.00 4 $20,696.00 $120,248.00 $0.00 Howard Industries,Inc.(Power Sales Group) Item 125 Wa Single Phase 120/240 Howard Industries,Inc 6-8 weeks $1,299.00 10 $12,990.00 Item 2 112 1/2 Wa Three Phase 120/208 Howard Industries,Inc 10-12 weeks $11,314.00 6 $67,884.00 Item 3 150 Wa Three Phase 1201208 Howard Industries,Inc 10-12 weeks $13,231.00 6 $79,386.00 Item 4112 1/2 Wa Three Phase 277/480 Howard Industries,Inc 10-12 weeks $4,654.00 4 $18,616.00 Item 5 150 Wa Three Phase 277/480 Howard Industries,Inc 10-12 weeks $6,935.00 4 $27,740.00 $206,616.00 $0.00 -------- --- -- ray ar-Electric-- -- ------ -- -- _ - ----- -------------- ---- ---- -------- Rem 125 We Single Phase 120/240 GE-Prolec 10 weeks $904.00 10 $9,040.00 9,040.00 Item 2 112 1/2 Wa Three Phase 120/208 no quote 6 $0.00 Item 3150 Wa Three Phase 120/208 no quote 6 $0.00 Item'4 112 1/2 Wa Three Phase 277/480 no quote 4 $0.00 Item 5150 Wa Three Phase 277/480 no quote 4 $0.00 $9040.00 $9,040.00 Cost for all of the lowest unit price Items $100,668.00 Copy of 2018-37 Analysis Page 1 { RMLD Reading Municipal Light Department RELLABLE POWER FOR GENERATIONS 230 Ash Street,P.O.Box 150 Reading,MA 01867-0250 i i March 7,2018 Town of Reading Municipal Light Board Subject: IFP 2018-39 Capacitor Banks Pursuant to M.G.L.c. 164§56D,on February 14,2018,a bid invitation was placed as a legal notice in the Middlesex East section of the Daily Times Chronicle requesting sealed proposals for Capacitor Banks. An invitation for proposals was sent to the following sixteen companies: i Controllix Corporation E.L.Flowers&Associates Genergy Corporation Graybar Electric Hasgo Power Equipment Stuart C.Irby Company J.F.Gray&Associates Omicron Electronics Onvia f Power Sales Group,Inc. Powertech/Utility Power Supply Company Prime Vendor,Inc. Robinson Sales Shamrock Power Sales Siemens Industry,Inc. WESCO Distribution,Inc. Sealed proposals were received from two companies:Graybar Electric and WESCO Distribution,Inc. The sealed proposals were publicly opened and read aloud at 11:00 a.m.,February 28,2018,in the Town of Reading Municipal Light Department's Audio Visual Spun-Room,230 Ash Street,Reading,Massachusetts. The proposals were reviewed,analyzed and evaluated by staff and recommended to the General Manager. Move that proposal 2018-39 for Capacitor Banks be awarded to:Graybar Electric for$24,314.60 pursuant to M.G.L.c. 164§56D on the recommendation of the General Manager. The remaining FYI Capital Budget amount($212,000)for Transformers&Capacitors will be used for this purchase. Brian Smith Hamid Jaffa Coleen O'Brien File:Bid/FY18/2018-39 Capacitor Banks 1 I I Capacitor Banks IFP 2018-39 I ; f Bidder Manufacturer Unit Price Qjy Total Price Delivery Graybar Electric Capacitor Bank Cooper Power/Eaton $12,157.30 2 ;$24,314.60 14 weeks I ' WESCO Distribution, Inc. Capacitor Bank Cooper Power/ Eaton $12,550.00 2 $25,100.00 12 - 14 weeks BOARD MATERIAL AVAILABLE BUT NOT DISCUSSED TOWN OF READING MUNICIPAL LIGHT DEPARTMENT March-18 RATE COMPARISONS READING 8 SURROUNDING TOWNS INDUSTRIAL-TOU RESIDENTIAL RESIDENTIAL-TOU RES.HOT WATER COMMERCIAL SMALL COMMERCIAL SCHOOL RATE 109,600 kWh's 760 kWh's 1600 kWh's 1000 kWh's 7,300 kWh's 1,080 kWh's 36000 kWh's 260.000 kW Demand 76126 Split 26.000 kW Demand 10.000 kW Demand 130.6 kW Demand 80120 Split READING MUNICIPAL LIGHT DEPT. TOTAL BILL $123.01 $214.88 $150.18 $1,103.87 $210.61 $5,158.65 $814,876.44 PER KWH CHARGE $0.16402 $0.14326 $0.15018 $0.15121 $0.19501 $0.14739 $0.11845 NATIONAL GRID TOTAL BILL $176.21 $407.40 $220.64 $1,684.69 $257.76 $6,411.12 $1,169,516.60 PER KWH CHARGE $0.23494 $0.27160 $0.22064 $0.23076 $0.23867 $0.18317 $0.17000 %DIFFERENCE 43.24% 89.59% 46.92% 52.62% 22.39% 24.26% 43.52% EVERSOURCE(NSTAR) TOTAL BILL $179.24 $291.96 $236.84 $1,588.38 $259.97 $7,553.17 $1,383,766.70 PER KWH CHARGE $0.23898 $0.19464 $0.23684 $0.21759 $0.24071 $0.21580 $0.20114 %DIFFERENCE 45.70% 35.87% 57.71% 43.89% 23.44% 46.42% 69.81% PEABODY MUNICIPAL LIGHT PLANT TOTAL BILL $79.70 $153.20 $104.20 $885.59 $141.20 $4,389.33 $575,406.92 PER KWH CHARGE $0.10627 $0.10213 $0.10420 $0.12131 $0.13074 $0.12541 $0.08364 %DIFFERENCE -35.21% -28.71% -30.61% -19.77% -32.96% -14.91% -29.390/. MIDDLETON MUNICIPAL LIGHT DEPT. TOTAL BILL $98.74 $201.66 $132.75 $959.51 $168.44 $4,762.93 $807,171.40 PER KWH CHARGE $0.13165 $0.13444 $0.13275 $0.13144 $0.15596 $0.13608 $0.11733 %DIFFERENCE -19.74% -6.15% -11.61% -13.06% -20.02% -7.67% -0.95% WAKEFIELD MUNICIPAL LIGHT DEPT. TOTAL BILL $132.36 $247.17 $166.88 $1,257.54 $199.78 $5,910.58 $1,007,556.30 PER KWH CHARGE $0.17648 $0.16478 $0.16688 $0.17227 $0.18499 $0.16887 $0.14646 %DIFFERENCE 7.60% 15.03% 11.12% 13.92% -5.14% 14.58% 23.65% From: Trey Schultz To: RMLD Board Members Croup Subject: AP Warrants and Payroll Date: Monday,March 12,2018 10:42:00 AM Good afternoon, 2.16.18, 2.23.18, 3.2.18, and 3.9.18 AP. 2.19.18 and 3.5.18 Payroll. There were no Commissioner questions. This e-mail will be included in the 2-22-18 Board Book. Tracy Schultz Executive Assistant Reading Municipal Light Department 230 Ash Street. Reading. MA. 01867 Tel: 781.942.6489