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HomeMy WebLinkAbout2018-01-25 RMLD Board of Commissioners Minutes N SPR O Diy r Town of Reading N 2 Meeting MinutesrR r I�d` _ is39+1NCORQ�� pp�_ �oTOWN CLERK READING, MA. ABard - Committee - Commission - Council: RMLD Board of Commissioners 2018 MAR 20 APS 9: 35 Date: 2018-01-25 Time: 07:30 PM Building: Reading Municipal Light Building Location: General Managers Conference Room Address: 230 Ash Street Session: Open Session Purpose: General Business Version: Final Attendees: Members - Present: David Hennessy, Vice Chair Tom O'Rourke, Commissioner Dave Talbot, Commissioner Members - Not Present: Philip B. Pacino, Chair John Stempeck, Commissioner Others Present: 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 George Hooper, Chair Public: John Rogers, 39 Tower Hill Road, Reading Minutes Respectfully Submitted By: David Hennessy, Secretary Pro Tem Topics of Discussion: 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 Page I I Public Comment 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. Page 1 2 General Manager's Report-Ms. O'Brien 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. 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. Page 1 3 Power Supply Report-November 2017-Ms. Parenteau (Attachment 3) 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 $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-M,r. 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 $134,948 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. Page 1 4 Engineering and Operations Report-November 2017-Mr. Jaffari (Attachment 5) 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 customary 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 2015-26 - 35kV Underground Cable Mr. Jaffari explained that these are the underground cables between Station 4 and 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§ 56D 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. 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. Page 1 5 A true copy of th RMLD Board of Commissioners minutes as a p oved by i y of Commission. D ennes Vi e C ir, Secr ary Pro Tem RMLD Board of Commissioners Page 1 6 READING MUNICIPAL LIGHT DEPARTMENT BOARD OF COMMISSIONERS REGULAR SESSION THURSDAY, JANUARY 25, 2018 APPROVAL OF BOARD MINUTES SEPTEMBER 14, 2017 & NOVEMBER 9, 2017 ATTACHMENT 1 I i I I READING MUNICIPAL LIGHT DEPARTMENT BOARD OF COMMISSIONERS MEETING 230 Ash Street Reading,MA 01867 i September 14,2017 7:30 p.m. Start Time of Regular Session: 7:35 p.m. ! End Time of Regular Session: 9:08 p.m. Commissioners: Philip B. Pacino,Chairman Dave Talbot, Comrnissioner Dave Hennessy,Vice Chairman,Secretary Pro Tem John Stempeck,Commissioner-Remote Participant Thomas O'Rourke, Commissioner i Staff: Hamid Jaffari, Director of E 8 0 Tracy Schultz, Executive Assistant Jane Parenteau, Director of Integrated Resources i Citizens Advisory Board: Jason Small,Member Call Meeting to Order i Chair Pacino announced that the meeting is being videotaped for distribution to television stations in the service j territory,and then read the RMLD Board of Commissioners' Code of Conduct. j Due to Mr.Stempeck being out of town and participating remotely,all votes will be roll call. i l Introductions Chair Pacino welcomed Citizens' Advisory Board (CAB) Member Jason Small. Public Comment There was no public comment, no comment from Mr.Small, and no liaisons present. I Approval of Board Minutes(Attachment 1) j Mr. O'Rourke made a motion,seconded by Vice Chair Hennessy,that the Board approve the meeting minutes i from May 10,2017, May 11,2017,and July 20,2017. I Chair Pacino called for a poll of the vote: _ Mr.O'Rourke: Aye;Mr.Talbot: Aye; Chair Pacino: Aye;Vice Chair Hennessy:Aye;Mr.Stempeck:Aye. Motion Carried 5:0:0. Report-RMLD Board Member Attendance at Citizens'Advisory Board Meeting - Chair Pacino Chair Pacino announced that he attended the Citizens' Advisory Board meeting on August 17, 2017. At that meeting, the CAB approved and recommended that the Board of Commissioners adopt Item 10 on this evening's agenda, the Electric Vehicle rate. The CAB also appointed two members to the Reading Town Payment Sub-Committee: Chair Hooper and member Cohen. That Committee is scheduled to meet on j Wednesday,September 27.Chair Hooper,Mr.Cohen,Mr.Stempeck,Mr.Ensminger,and Chair Pacino will attend. Report of the Chair-Chair Pacino Attendance of the Board at the NEPPA Conference,August 20 through 23,2017 Chair Pacino stated that the NEPPA conference was an opportunity to network with different people. Chair Pacino attended some of the sessions,and asked if any attendees of the fiber session wanted to speak about Report of the Chair-Chair Pacino Attendance of the Board at the NEPPA Conference,August 20 through 23,2017 what they had heard.Mr.Talbot replied that Chair Pacino must be referring to Jim Ingraham from Chattanooga, and explained that municipal utility is a national pioneer in merging communications and electricity.They have a lot of creative things going on and there has been some talk of inviting a representative up to RMLD,or having representatives from RMLD go to Tennessee. Mr. O'Rourke noted that 100 percent of the Board attended the NEPPA conference, along with Mr. Jaffari, Ms. Parenteau, and Ms. O'Brien. Mr. O'Rourke added that fiber is a timely issue; visiting and examining benchmark companies would be worthwhile. Engaging Municipal Fiber Leaders- Mr. Hennessy Vice Chair Hennessy agreed, stating that he is very excited about having Chattanooga possibly come up and that Ms. O'Brien had also mentioned meeting with the General Manager of Braintree. RMLD should learn from other utilities and determine three or four best practices. Mr.Talbot stated that he has been writing a report with Vice Chair Hennessy on fiber and thinks that it is time to wrap it up and present the document to the Board. Mr. Jaffari stated that'the fiber consultant is finishing his study and it should be ready next week. Mr. Talbot asked who the Chair of the Strategic Committee is. Chair Pacino-replied that it's more of a general facilitated discussion, without a designated Chair. Mr.Talbot asked if RMLD wanted to bring in a representative from Wellesley. Mr.Jaffari replied that the Braintree General Manager will be at the September 26th Strategic Meeting. Community Engagement-Ms. Parenteau Ms.Parenteau stated that this past Sunday RMLD had a booth at the Reading Street Fair,where employees spoke to many customers about Solar Choice Phase 2. In August, RMLD sponsored a high school summer art contest. Twelve students submitted artwork and an awards ceremony was held on August 24.The first,second,third, and fourth place winners received gift certificates to Staples. The first-place piece will be on the cover of RMLD's Annual Report.The second-place winner will be on the back of Public Power Open house tee shirts that are being provided for employees during Public Power Week.The public Power Week Open House will occur on Thursday, October 5 from 3-6 P.M. here at the RMLD. On October 16 RMLD employees will be attending a welcome reception at the Wilmington Public Library from 6 to 8 p.m. for new Wilmington residents. The information for the elementary school art contest is being delivered to all the third and fourth graders in RMLD's service territory today and tomorrow. Joyce Mulvaney, the Communications Manager, did a fantastic job producing RMLD's own electric safety and public power video. Yesterday, RMLD held a National Drive Electric Week event at 200 Ballardvale Street. There were two sessions, one for the employees of 200 Ballardvale,one for the public.There were over 130 participants.There was a Chevy Volt available for test driving. The Annual Report has been started; the Town is finalizing its financials; RMLD is waiting on calculations for the Pension and OPEB. Power Supply Report-June and July 2017-Ms. Parenteau(Attachment 2) Ms. Parenteau announced that she would be reporting on the months of June and July. It appears that ISO had its peak demand in June. This has only occurred two times in the last 25 years and is not normal in the New England region. It happened on June 13, hour ending 5 o'clock.This is projected,since the summer period lasts 2 Power Supply Report-June and July 2017- Ms. Parenteau(Attachment 2) until the end of September.The ISO's peak was considerably lower than it was in 2016. In 2016, the ISO peaked at 25,596 megawatts.This year The ISO peaked at 23,717.The decrease is approximately seven percent. I Ms. Parenteau then reported on RMLD's system peak versus cooling degree days. Cooling degree days are calculated by taking the difference between the temperature mean,which is the average of the high and low of the day, then subtracting that from 65. This indicates how much cooling is necessary. In 2017, June had less cooling degree days than it did in 2016. Sales are dependent on weather. Sales in June 2017 were $66 million, versus last June,when sales totaled $63 million. Even though cooling degree days were down, sales were up-a i caveat to this is that June billing represents some of May, due to the billing cycle. i Fiscal Year 2017 purchase power expenses showed that fuel costs were down$900,000.However,capacity costs increased by$2 million and transmission costs increased by$700,000.There was a$1 million increase in the overall power supply. Sales were flat; there is less than a one percent difference between FY 2016 and FY 2017. Proposed Rate Approval(Attachment 3) RMLD has been running an Electric Vehicle (EV) charging station pilot program at Analog Devices and is presenting this rate in anticipation of installing other charging stations at other locations.The proposed rate looks at recovering fixed costs, at 0.111 cents. The fuel charge and transmission and capacity components will then be added monthly. It currently is a little over 20 cents,which is equivalent to paying$1.80 a gallon for gasoline. Mr.Talbot asked if other municipals have different rates for electric vehicles.Ms.Parenteau replied that she can't answer for other municipals. Mr. Talbot then asked what the precedent is for having a specific EV rate. Ms. Parenteau stated that she would have to look into that. Mr. Talbot stated that he is wondering what the business model is in installing RMLD chargers and what the payback period would be, versus subsidizing businesses to put in chargers. Mr. Talbot added that RMLD could put in outlets instead of a$40,000 fancy charging station. Mr.Talbot stated that he is wondering what the idea is behind spending money on a charger and then recovering it from 20 cents a kwh. Ms. Parenteau explained that this is a technology that could help the utility in the future. If electric vehicles do take off this is an opportunity for the RMLD to increase revenue and sales.There aren't plans for RMLD to install a lot of these:it will be determined by supply and demand.We want to have a rate on file. Mr.Talbot said that he would be happy to vote to approve the rate, but wants to look at parking lot business models. Mr.Talbot asked how it works now. Ms. Parenteau explained that RMLD owns the charging station. EV owners swipe a credit card and ChargePoint recovers the money and sends it to RMLD.There's a 10 percent ChargePoint fee that is incorporated into what the customer pays. Mr.Talbot clarified that this is to formalize the pilot program and added that electric cars represent the future of lode growth and he wants to get the business model right. Vice Chair Hennessy made a motion,seconded by Mr.O'Rourke,that the RMLD Board of Commissioners approve rate MDPU Number 277,effective November 1,2017 on the recommendation of the General Manager. Chair Pacino called for a poll of the vote: Mr.Talbot: Aye; Mr. O'Rourke: Aye; Chair Pacino:Aye; Vice Chair Hennessy: Aye; Mr.Stempeck: Aye. Motion Carried 5:0:0. 3 Engineering and Operations Report-June 2017- Mr. Jaffari(Attachment 4) Mr. Jaffari explained that since FY 2017 has ended, he will be giving a full report on the budget and spending. Capital expenditures are comprised of four categories:construction,station upgrades,routine construction,and purchasing. Ninety percent of FY 2017 projects were successfully completed. $1,630,623 was spent in the month of June, bringing the year-to-date spending to $8,009,832. The FY 17 budget was approved for$9.4 million. The remaining balance of $1.4 million is comprised of $717,235 for distributed generation. We will come in under budget for that project;it was budgeted for$2.7 million and will cost$2.4 million. RMLD needs to pay Milton Cat's last invoice of$400,000. RMLD is holding it due to noise levels from the generator. Once they correct that we will pay it off.The$432,000 balance that was allocated for transformers and capacitors, has not been spent, but will be.$236,484 of that is allocated for the Wilmington Substation. RMLD is still searching for land but has a proposed site.Otherwise, the full$9 million would have been spent. There were some challenges along the way.There were surprises during the construction phase of some projects, such as Project 106,the underground facilities upgrades.There was equipment that wasn't expected to fail.There were also motor vehicle accidents that hit transformers that then needed to be replaced. When you get into sub-divisions and the street up you find that you need to do more than what you expected. That's why some projects were over budget. Mr. Jaffari continued, stating that some projects are ongoing, such as the AMI mesh network expansion and transformer capacitors.GIS is 99 percent complete.Next week RMLD employees will be training with Milsoft,using a full engineering model based on up-to-date GIS. This will allow for more accurate estimation of projects. The LED streetlight upgrade is on target.This is the final phase,with 2,450 installs remaining.By installing 65 a week,the project will be done by June 2018. The Analog Devices upgrade and RMLD HVAC upgrade are completed. RMLD's SCADA room is currently being upgraded, and the Board can tour the facility in a few weeks when the work is finished.There is a new outage management system and large monitors. RMLD is on the right path as far as technology upgrades and automation. These will improve reliability and cut down.outage frequencies and duration. Chair Pacino stated that he was at the ribbon cutting of the new generator and the tour of the North Reading facility, and when the generator was turned on the sound wasn't too much. Mr.Jaffari explained that the specifications called for 50 dB at 60 feet;the noise level came out to 55 dB at 60 feet.The contractor is required to meet the bid specs.Tomorrow is the next test. Chair Pacino added that there is enough room at the site to add a second unit. Mr. Jaffari agreed and stated that Engineering is working with IRD to secure a grant for three and a half megawatts battery storage. The grant results will be published in November. Mr.Talbot commended Mr.Jaffari and Ms.O'Brien for completing an amazing number of engineering upgrades; it's a lot of work.Mr.Jaffari replied that it is a team effort. Mr. O'Rourke commented that there's a lot of tracking and reporting involved.That takes a lot of organization. Mr. Jaffari thanked the Board and then reported on routine maintenance. There was no tree trimming in June, because an aggressive maintenance program and extensive damages from storms earlier in the year used up the allocated budget for that program.The maintenance on Station 3 will be completed next week-there were many design issues. Reactors still need to be installed outside to drop incident energy. This will happen in a few weeks when the contractors return from hurricane outage restoration. In the last 2 or 3 months, RMLD has taken down 120 double poles in North Reading, Reading and Lynnfield, and Wilmington. There are 3 transfers remaining in Lynnfield, and in Reading there are 59 pull poles. North Reading was over 100, and that has been brought down to 32. Wilmington has 14 more poles.The number goes up and 4 I I Engineering and Operations Report-June 2017- Mr.Jaffari(Attachment 4) down as construction occurs.Mr.Jaffari thanked the community and RMLD's customers for being so patient. Mr.Jaffari then moved on to the SAIDI,SAIFI and CAIDI reliability indices,all of which are well below national and regional averages. These numbers can change with one storm. The trend over the years has been to stabilize. 2014 was a bad year due to maintenance issues.Since maintenance programs have been developed and kept up the outage numbers have been going down. Mr. O'Rourke asked if this was a measure of the work being done with capital expenditures, which Mr. Jaffari replied to in the affirmative. I ' Vice Chair Hennessy asked if there was one that Mr.Jaffari looked to as more important than the others. Mr. Jaffari explained that SAID] is system outage duration,SAIFI is the average frequency of a customer outage, and SAIFI is the frequency of outages. Mr. Jaffari stated that RMLD is doing well on SAIFI,considering that RMLD is responsible for four towns. Mr. Jaffari explained that he looks at all three indices; they are all important. These are tracked every month on APPA software. Mr. Hennessy clarified that the report said 13 customers out of every 1,000 experienced an outage. Mr. Jaffari explained that it is 0.13, which means less than one outage of the customer base. It is less than one percent.The regional average is 0.54 among utilities the same customer size,or less. i Mr. Jaffari explained that RMLD's outages were mainly caused by equipment failure, trees, and wildlife. Equipment and wildlife have gone down;trees go up and down depending on the number of storms. Chair Pacino asked if RMLD played any role in restoring power to Texas after the hurricane. Mr.Jaffari answered that RMLD received a Mutual Aid call. However, the week before there were five motor vehicle accidents in RMLD's service territory. Not having enough resources, RMLD •couldn't send anyone. One employee took vacation and went. The next hurricane, depending on if our system is in good shape, we may send assistance. Mr. Jaffari stated that he is a big fan of mutual aid and his heart goes out to the people who are out of power. i Determination of Uniqueness of Property-Mr. Jaffari Mr. Jaffari explained that there is a site at 326 Ballardvale Street that RMLD is considering building a substation on. It is located right next to 115 kV lines.Therefore,a lot of construction won't be needed to bring the energized line into the substation.RMLD had a meeting with the Town of Wilmington,and there is a zoning issue:the building to lot ratio is 36 percent. It needs to be 35 percent, per zoning requirements.There are three options, which are l being negotiated with the owners:purchase,lease with option to buy,and lease. RMLD is trying to purchase the property,but is also looking at leasing the property because that would get rid of the zoning requirements and a variance would not be required. Because of the uniqueness of the project's location, RMLD is asking to skip the RFP, because we do not need to receive proposals from all over. We need substation where 115 kV lines are, and there are not many properties that fulfill that requirement.The one RMLD has already located does. Not filing an RFP will save two months' time. Notice of the exemption will appear in the Central Register,so there will be public notification. I Chair Pacino asked Mr. Jaffari to explain why the Department is doing this. I Mr.Jaffari answered that Substation 5 (Wildwood Station) has reached the end of its useful life.The transformers are old and it's next to wetlands, which makes construction very difficult due to site restrictions. It is being fed from 34.5 kV lines from Station 4.That means that the losses are significant. Being close to the 115 kV lines would 5 Determination of Uniqueness of Property-Mr. Jaffarl cut losses and save money. The property in question would place the substation where the load center is. The property is in the perfect location. Vice Chair Hennessy made a motion,seconded by Mr.O'Rourke,that the RMLD Board of Commissioners approve the determination of the uniqueness of property and waive the publication requirements of M.G.L. Chapter 30B § 16,with respect to the acquisition of land located at 326 Ballardvale Street,Wilmington MA 01887,and identified on the Town of Wilmington Assessor's Map as R2 Lot 23/2. Chair Pacino called for a poll of the vote: Mr.Talbot:Aye; Mr. O'Rourke: Aye; Chair Pacino: Aye; Vice Chair Hennessy: Aye; Mr.Stempeck:Aye. Motion Carried 5:0:0. RMLD Procurement Request Requiring Board Approval-Mr. Jaffari(Attachments) RFP 2018-01 115kV Pole Replacement Project Mr. Jaffari explained that these are the 115 kV lines that are feeding Station 4. The poles were tested and are marginal.Two poles failed and were replaced last year.There are five more that need to be upgraded.Eighteen construction companies were sent a Request for Bid (RFB) and only two responded. Mass Bay did not meet the requirements following a background check.Harlan Electric did the pole replacement last time.Their$115,069.59 bid includes$9,314.34 for matting since the poles are in a wet area. If that doesn't need to be used it would be savings for RMLD. Chair Pacino stated that the bid is for$150,000 and the project was budgeted for$60,000. Chair Pacino asked Mr. Jaffari to explain the difference. Mr. Jaffari explained that the amount is higher due to construction challenges. Upon further investigation, it was determined that more work and more labor is involved because the situation is worse than what we originally thought.This is impacting reliability and this is one of two major lines that feed into Station 4. These are 70-foot-tall poles. We've notified National Grid and Eversource; it's a long process to schedule the outage. Vice Chair Hennessy made a motion, seconded by Mr. O'Rourke, that proposal 2018-01 for Pole Replacement Project be awarded to Harlan Electric as the most responsible and eligible bidder,in the amount of$115,069.59, pursuant to M.G.L. Chapter 30§ 39M on the recommendation of the General Manager. Chair Pacino called for a poll of the vote: Mr.Talbot:Aye; Mr. O'Rourke:Aye;Chair Pacino: Aye;Vice Chair Hennessy: Aye; Mr.Stempeck: Aye. Motion Carried 5:0:0. RFP 2018-03 48 Pole Mounted Transformers Mr.Jaffari explained that these transformers are used for system upgrades. 16 companies were sent the RFB.The two lowest, responsible, and responsive bidders were Stuart C. Irby Co. in the amount of$42,493.00 and Wesco for$59,229.00,for a total of$101,722.00. A part of the bid requirement is that the transformers meet DOE energy efficiency standards.This is the reason that the other bidders were disqualified:they weren't even close. Chair Pacino clarified that the bid is for 48 Pole Mounted Transformers and asked that M.G.L. be added to all bids. Vice Chair Hennessy made a motion, seconded by Mr. O'Rourke, that proposal 2018-03 for 48 Pole Mounted Transformers be awarded to Stuart C. Irby Co. in the amount of$42,493.00 and Wesco for$59,229.00, for a total of$101,722.00, pursuant to M.G.L. Chapter 164§ 56D on the recommendation of the General Manager. 6 i RMLD Procurement Request Requiring Board Approval-Mr.Jaffari(Attachment 5) Chair Pacino called for a poll of the vote: Mr.Talbot:Aye;Mr. O'Rourke: Aye;Chair Pacino: Aye;Vice Chair Hennessy: Aye; Mr.Stempeck:Aye. a Motion Carried 5:0:0. RFP 2018-04 50 Pad Mounted Transformers Mr. Jaffari same thing as previous bid but these mount on pad for underground.There werel 6 bidders.The most i responsible and responsive was Wesco.The rest of the bidders took exceptions. Vice Chair Hennessy made a motion, seconded by Mr. O'Rourke, that proposal 2018-04 for 50 Pad Mounted Transformers be awarded to WESCO in the amount of$68,959.00, pursuant to M.G.L. Chapter 164 § 56D on the recommendation of the General Manager. Chairman Pacino called for a poll of the vote: Mr.Talbot:Aye; Mr. O'Rourke:Aye;Chair Pacino:Aye; Vice Chair Hennessy:Aye; Mr.Stempeck: Aye. Motion Carried 5:0:0. j RFP 2018-05 Capacitor Banks i Mr. Jaffari explained that capacitor banks are used to maintain the voltage on the system.The bid was sent to twelve companies and all of them took exceptions. The lowest responsible and responsive bidder was Stuart C. I Irby in the amount of$39,664.00.Per Chapter 164,we don't have to go with lowest bidder.However,this was the lowest bidder.The exception that they took was a minor variance.It was budgeted for$30,000 but unfortunately it is a bit higher. Before we send out the request for bids we get an estimate of how much the equipment will cost.The actual cost can go up and down-this one went,-up. Vice Chair Hennessy made a motion,seconded by Mr. O'Rourke, that proposal 2018-05 for Capacitor Banks be I awarded to Stuart C. Irby in the amount of $39,664.00, pursuant to M.G.L. Chapter 164 § 56D on the recommendation of the General Manager. Chair Pacino called.for a poll of the vote: Mr.Talbot:Aye; Mr. O'Rourke:Aye;Chair Pacino:Aye; Vice Chair Hennessy:Aye; Mr.Stempeck:Aye. Motion Carried 5:0:0. RFP 2018-06 15kV Pad Mounted Switchgear Mr. Jaffari stated that this switchgear that is used for underground distribution of major loads: anywhere from 2,000 kVa to 51,000 kVa.They are a key part to the reliability of the underground system. RMLD has a program to purchase four to five every year until all 25 are replaced.They all have reached the end of their useful life.Troyer Engineering Corporation had no exceptions.This went over the budgeted amount; the price of metal has gone up. - Vice Chair Hennessy made a motion, seconded by Mr. O'Rourke, that proposal 2018-06 for 15kV Pad Mounted Switchgear with Vacuum Load Interrupters and Vacuum Fault Interrupters be awarded to Troyer Engineering Corporation in the amount of$175,431, pursuant to M.G.L. Chapter 164 § 56D on the recommendation of the General Manager. i Chair Pacino called for a poll of the vote: Mr.Talbot: Aye; Mr. O'Rourke:Aye; Chair Pacino: Aye;Vice Chair Hennessy: Aye; Mr. Stempeck: Aye. Motion Carried 5:0:0. 7 RMLD Procurement Request Requiring Board Approval-Mr. Jaffari(Attachment 5) RFP 2018-07 SCADA-Mate CX Switches Mr. Jaffari stated that this is the some technology that Chattanooga is using for distribution automation.This is a 10 to 15-year program for replacing the major switches with ones that are smart.They can detect the fault,isolate it, and send a message to SCADA.The dispatchers will send crews right to the outage location, saving on operation expenses. We are in year two.Year one was the pilot program and came in under budget.The bid is being awarded to WESCO in the amount of$134,084.The budgeted amount was$140,000. Mr. Talbot asked how many of the switches will RMLD ultimately be installing. Mr. Jaffari replied: 99 to 100. Mr. Talbot then asked how the switches communicate with RMLD.Mr.Jaffari responded through fiber node. In areas that have no fiber, a radio will be used to send a signal to the nearest fiber. Mr.Talbot asked how much it would cost to run fiber to the locations who have no fiber. Mr. Jaffari answered that installing the fiber is a matter of time. As we expand fiber assets-eventually all will be covered. However, expanding the fiber network will cost more than the radios. Currently, those using dark fiber are paying for its installation and then turning it over to us.A situation we can benefit from is the preferred choice. Mr.Talbot stated that it's going to be worth it to install fiber where there are businesses and homes because over time those strands will be used. Mr. Talbot stated that he is encouraging Mr. Jaffari to put in the fiber to support the switches.you're up there anyway and then you have the fiber and it can be monetized. Chair Pacino asked what is meant by "unauthorized signature" under Graybar. Ms.Schultz speculated designated purchasing agent; but wasn't sure. Mr. O'Rourke asked, with a total of ninety switches needed, is there any leverage to negotiate? Is the price quantity sensitive? Mr. Jaffari replied that It is. A bid would need to be sent out and money committed to spending on the equipment.The reason we haven't done that is if sales are down, this project could be deferred if it needed to be. Mr.Talbot stated that when these are installed you save money.Even if you spend an obscene amount of money up front,you would get that money back. Mr. Jaffari explained that RMLD would have to allocate $2 million to spend. However, RMLD has to build a new $5 million substation.That's why the purchasing of this equipment is divided into segments. Mr. Talbot announced that he was encouraging Mr. Jaffari to wrap it up into one project and include fiber connectivity. Mr.Talbot then asked Mr.Jaffari if he had changed his mind about the voting on this bid tonight. Mr. Jaffari replied that he had not; it takes sixteen weeks to get the equipment and these are for key locations. He will look into a bulk purchase for the next order.These switches are encapsulated so everything is covered; it minimizes the likelihood of animal contact. Mr.Talbot commented that Chattanooga saved $2 to$3 million during one storm. Vice Chair Hennessy made a motion, seconded by Mr. O'Rourke that proposal 2018-07 for SCADA-Mate CX Switches be awarded to WESCO in the amount of $134,084, pursuant to M.G.L. Chapter 164 § 56D on the recommendation of the General Manager. 8 I RMLD Procurement Request Requiring Board Approval-Mr. Jaffari(Attachment 5) Chair Pacino called for a poll of the vote: Mr.Talbot:Aye;Mr. O'Rourke: Aye;Chair Pacino: Aye; Vice Chair Hennessy: Aye; Mr.Stempeck:Aye. i Motion Carried 5:0:0. RMLD Procurement Request Requiring Board Approval-Mr. Jaffari(Attachment 5) RFP 2018-10 One(1)Trouble Truck:Year 2018 or Newer with Trade-In Mr.Jaffari announced that the last bid is for a trouble truck with trade-in.The lowest bidder was Altech, but they took some exceptions and had missing parts.The second lowest was Minuteman Trucks. It will take 42 weeks to deliver.The value of the trade-in is$15,000.The price of the truck before trade-in was$186,465.16. Mr. Hennessy made a motion,seconded by Mr. O'Rourke, that proposal 2018-10 for One (1) Trouble Truck: Year 2018 or Newer with Trade-In be awarded to Minuteman Trucks in the amount of$174,125.16, pursuant to M.G.L. Chapter 164§ 56D on the recommendation of the General Manager. i t Chairman Pacino called for a poll of the vote: Mr.Talbot: Aye;Mr. O'Rourke: Aye;Chair Pacino: Aye; Vice Chair Hennessy:Aye;Mr.Stempeck: Aye. Motion Carried 5:0:0. I Mr. Small then directed the Board's attention to an error on 2018-04 50 Pad Mounted Transformers, stating that the$68,959 bid amount should be much higher.The calculation used in the bid reflect singular values rather than the,full quantities. The Unit price was used without accounting for how many pieces of equipment would be purchased.Mr. Jaffari recalculated the bid while the Board moved on to the next agenda items, at Mr.Talbot's suggestion. RMLD Board Meetings Chair Pacino announced that the next Strategic Meeting will be held on Tuesday, September 26, 2017 at 6:00 p.m., and the Sub-Committee on the Payment to the Town of Reading will meet on September 27 at 6:00 p.m. The next RMLD Board Meeting will be on Thursday, October 26, 2017 at 7:30 p.m. Ms.Schultz said that the Audit results will be presented and she'll coordinate with the Town of Reading Audit Committee. CAB Meeting Mr. Small stated that the CAB meeting scheduled for Wednesday, September 20, 2017 at 6:30 p.m. has been i cancelled.The next meeting will be in October. i RFP 2018-04 50 Pad Mounted Transformers Mr. Jaffari apologized for the bid error, and stated that he has calculated that the total bid amount should be $205,981. Chair Pacino stated that the Board will make a motion to reconsider Item 13c, and then revote it. Mr. O'Rourke made a motion,seconded by Vice Chair Hennessy,to reconsider Item 13c. Chair Pacino called for a poll of the vote: Mr.Talbot: Aye;Mr. O'Rourke: Aye; Chair Pacino: Aye;Vice Chair Hennessy:Aye;Mr.Stempeck: Aye. Motion Carried 5:0:0. Vice Chair Hennessy made a motion, seconded by Mr. O'Rourke, that proposal 2018-04 for 50 Pad Mounted Transformers be awarded to WESCO in the amount of $205,981, pursuant to M.G.L. Chapter 164 § 56D on the recommendation of the General Manager. Chairman Pacino called for a poll of the vote: Mr.Talbot:Aye;Mr. O'Rourke: Aye; Chair Pacino:Aye;Vice Chair Hennessy:Aye; Mr.Stempeck:Aye. Motion Carried 5:0:0. 9 General Discussion Mr. Talbot explained that if solar is not installed by March, current subsidies go away. Mr. Talbot stated that he wants to make sure that the towns know about the deadline; he is sending a letter to the Towns and is just letting the Board know. Mr.O'Rourke asked Ms. Parenteau if it would be more appropriate to have a staff member of RMLD contact the Towns. Ms. Parenteau answered that several solar vendors have contacted RMLD and RMLD has sent information to our customer base. Mr.Talbot clarified he is referring to the Towns. Mr. O'Rourke asked Mr. Parenteau if it would be more appropriate to have the letter come from RMLD. Ms. Parenteau replied that it's Mr.Talbot's prerogative. Mr.Talbot stated he was writing the letter more as a Town Meeting member, but wanted to make sure none of his RMLD Board colleagues have any objections. Chair Pacino stated that Mr. Talbot can say that the Board supports his writing of the letter. Executive Session Vice Chair Hennessy made a motion, seconded by Mr. O'Rourke, that the Board go into Executive Session to consider the purchase of real property and return to Regular Session for the sole purpose of adjournment. Mr.Stempeck left the meeting. Adjournment Vice Chair Hennessy made a motion,seconded by Mr. O'Rourke adjourn the Regular Session. ` Motion Carried 4:0:0. A true copy of the RMLD Board of Commissioners minutes as approve y a majority of the Commission. David Hen essy,Secretary Pro Tem RMLD Board of Commissioners 10 f j .. READING MUNICIPAL LIGHT DEPARTMENT BOARD OF COMMISSIONERS MEETING 230 Ash Street Reading,MA 01867 November 9, 2017 Start Time of Regular Session: 7:30 p.m. End Time of Regular Session: 9:40 p.m. Commissioners: Phillip B. Pacino,Chair John Stempeck,Commissioner Dave Hennessy, Vice Chair,Secretary Pro Tem Dave Talbot, Commissioner-Absent Tom O'Rourke,Commissioner staff: Coleen O'Brien,General Manager Joyce Mulvaney, Communications Manager ' Hamid Jaffarl, Director of Engineering and Operations Tracy Schultz, Executive Assistant i William Seldon,Assistant Director of Integrated Resources Wendy Marklewicz, Director of Business/Finances i Citizens Advisory Board: Guests: Dennis Kelley,Member Frank Biron,Melanson Heath & PC l Zackary Fentross,Melanson Heath& PC I RMLD Liaison: Public: Peter Lydecker Mary Ellen O'Neill Call Meeting to Order Chair Pacino 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. i i Opening Remarks Chair Pacino read the RMLD Board of Commissioners' Code of Conduct and welcomed Mr. Kelley from the Citizens' Advisory Board. Public Comment Reading resident Mary Ellen O'Neill took the floor, introducing herself as a Reading resident, a current and longtime Town Meeting member,and a former member of the CAB,the RMLD Board,and a former Chairman of the RMLD Board. Ms.O'Neill expressed her concerns regarding RMLD's tree trimming program and the potential damage done to the trees in the process. Ms. O'Neill explained that the cuts are akin to wounds and asked the Board to consider some compensation to the Towns. Ms. O'Neill stated that she understands the importance of service reliability. It would be fair and just for the trees to set aside money to give to the municipalities to plant trees in the communities.The Commissioners had no questions and will take her suggestion under consideration. Approval of Board Minutes June 15,2017(Attachment 1) Chair Pacino explained that the Board minutes were not reviewed in time for this meeting. Presentation of Fiscal Year 2017 Audit(Attachment 2) Melanson Heath& P.C.-Frank Biron and Zackary Fentross Mr.Biron stated that the results of the audit are a clean opinion.The financial statements are in accordance with generally accepted accounting principles.That's the best opinion you can receive from an independent outside audit.The overall cash balance is in a very strong position:$15 million.This is about two months'worth of operating cash. Other restricted cash reserves add up to $29 million. Receivables are current; all the receivables that are on the books are under 60 days old. RMLD has no long-term bonds payable and funds all capital additions through the rate structure and the normal budget process. RMLD has a pension liability of$12 million because of Presentation of Fiscal Year 2017 Audit(Attachment 2) Melanson Heath& P.C.-Frank Biron and Zackary Fentross participation in the Town's contributory retirement system. The Town's retirement system is about 73 percent funded,which is better than most municipals in Massachusetts,which are typically funded in the 50 to 60 percent range.The Department has another$5 and a half million set aside in the pension reserve fund.The new GASB 74 and 75 deal with post-employment benefits.Actuaries determined that the overall liability for the Department for retirees' healthcare benefits is about $10 million. The Department has about $3 million set aside in a restricted account. The net liability is about $7 million. Next year's audit will require that to be reported on the balance sheet. The Department had a profit of $4.5 million. It's limited by the DPU; RMLD can't exceed a profit of more than 8 percent of capital assets. RMLD was in the 7.5 percent range. It was a very profitable year. Mr. Fentross stated that RMLD's accounting records are in fantastic shape. 70 percent of communities receive a management letter. RMLD takes internal controls very seriously. Mr. Fentross thanked everyone involved in the audit for being well-prepared and pleasant. Mr. O'Rourke asked Mr. Fentross to explain what management letter is. Mr. Fentross explained that his firm looks at the internal controls of the Department to ensure assets are properly safeguarded. If it were determined that an improvement could be made,would formerly recommend it in a management letter. Chair Pacino stated that the Audit Committees of the Town and the Board met before this meeting and received a more detailed presentation from the auditors. Both committees voted to accept the audit and to recommend that the Board of Commissioners accept the audit. The vote was 4:0 for the Town and 2:0 for the RMLD Audit Committee. Mr. O'Rourke made a motion, seconded by Vice Chair Hennessy, that the Board of Commissioners accept the Audit Report from Melanson Heath, Fiscal Year ended June 30,2017 as presented. Motion Carried:4:0:0 Report of the Chair Chair Pacino reported that the Sub-Committee on the Payment to the Town of Reading met and discussion as to what the Town is trying to achieve ensued. Chair Pacino made a presentation to the members on RMLD's financial structure.The Committee is comprised of two CAB members, Mr. Stempeck, and Dan Ensminger from the Town of Reading. Mr. Stempeck added that it was fruitful exploring mechanisms and ideas of how to meet the needs of the Town.As the Town will be reporting at the upcoming Town Meeting, discussions are ongoing. Report on RMLD Board Member Attendance at RMLD Citizens' Advisory Board Meeting Chair Pacino stated that the CAB meeting had two highlights:the IRD presentation that is also being presented tonight, and a presentation on RMLD's financial structure. Mr. Kelley added that the CAB has a full Board again. Community Engagement Ms. Mulvaney reported that RMLD participated in public power week and had over 300 people attend its Open House.The elementary student art contest awards will be in January. The historical calendar will be available at the end of November. The holiday light decorating contest will be held this year after Thanksgiving. The RMLD website is going to be updated and will be more mobile friendly.The High School Art Contest will be held during the spring semester.Mr.Stempeck commented on how fantastic the artwork is from the summer contest. Report of the General Manager-October 29,2017 Storm Response-Ms.O'Brien Ms. O'Brien provided an update on the recent storm. The total amount of customers that went out was 2,617. Wilmington 190 Lynnfield 350 North Reading 402 and Reading 1,675.The majority in Reading was due to a feeder outage which lasted two hours. Every single one of the outages was tree related.RMLD issued 72 tweets updating customers with information and restoration times. Ms. O'Brien stated that when large trees come down, RMLD can't get in there right away. Cranes may be needed and a lot of tree work needs to be done. Concord, Littleton, Wakefield and a contract crew provided mutual aid. Overall, RMLD did very well. Everyone was back in power well ahead of other towns. Mr. Jaffari will be demonstrating a new outage management system next week, and RMLD is hoping to implement it in spring. 2 Report of the General Manager-October 29,2017 Storm Response-Ms.O'Brien Vice Chair Hennessy asked how the new system will provide the public with more and better information. Mr. Jaffari explained that the new outage management system is integrated with the AMI system (the mesh network) so when an outage occurs a signal is sent system and we will see which customers are out,the feeder out on the GIS map, and which streets and how many customers are out. It will be a more accurate way to capture when customers are out and when they'll be back on. It will let RMLD know when customers are restored. i Chair Pacino stated that the electrical system was up quickly,well ahead of other towns,and asked Ms. O'Brien to pass along the Board's gratitude to RMLD employees. Integrated Resources Division Power Supply Report-August and September 2017-Mr. Seldon(Attachment 3) Mr.Seldon began by comparing the day ahead pricing and the real-time pricing of the last three summer peaks. Due to how much higher the latter is, RMLD wants to have as much power purchased ahead of time as possible. i Transmission and capacity went up in 2017.Since this year's costs are the highest per kW month,you would think that 2017's overall costs for the month of September would have been higher than they were in 2016. But, the peak was much higher in 2016, over 20 megawatts higher, therefore costing more. Energy prices are still on the downswing.Historically,natural gas prices go down during the three summer months. Capacity costs are high this year.The capacity load isn't increasing exponentially, but costs are going up. i Mr. Stempeck clarified that that's due to infrastructure investment that was made by other utilities. Mr. Seldon replied that it's according to what ISO says we need for generation capacity in our zone-they say that we're constrained.This will be the case until they finish all their transmission upgrades and get FirstLight online-generation that should be there right now but isn't. i Power Supply Risk Management Strategy-Mr. Seldon(Attachment 4) Mr.Seldon explained that the objectives of the presentation are to show how upgrading current strategy will help mitigate risks, keep the rates stable,improve the way we lock in pricing at optimum times, and help secure costs overall. RMLD has been using a laddering and layering strategy for the last six or seven years annually to go out for pricing and stagger how much power we're buying with most of the purchase being within the first year and then staggering in increments over four years. hopefully gives smooth curve. With this new system, we're not locking in all the power supply.There are contracts already in place and entitlements all of that has been pulled out of the energy needs that we're looking at. The current system is limiting because it involves a lot of purchasing all at once.It takes up a lot of staff time and involves significant legal costs to negotiate contracts.The new process will help mitigate staff time and legal costs moving forward.There are two different triggers:price and time. If you can't take advantage of the market at a certain price, this gives a certain amount of time to look at prices and lock in something.There are dates to look at and a pricing matrix.This has been done in the past with heat rate index contracts,using the some philosophy. Mr.Stempeck asked where this system was developed.Mr.Seldon answered that it has been utilized by municipal utilities for a while. Ms.O'Brien stated that NextEra will be helping RMLD and that RMLD is working hard to stabilize rates and this allows more opportunities to capture better pricing. Mr. O'Rourke made a motion, seconded by Vice Chair Hennessy, that the Board of Commissioners accept the -_ Risk Management Strategy as presented, and authorize the General Manager to enter into purchase power agreements that satisfy the criteria set forth in the Risk Management Strategy. As a matter of protocol, the Department will provide a report on transactions relative to this strategy. Motion Carried 4:0:0. Chair Pacino noted that the CAB recommended that the Board of Commissioners approve the motion 5:0. 3 Engineering and Operations Report-July,August, and September 2017-Mr.Jaffari(Attachment 5) Mr.Jaffari stated that good progress is being made on projects.$279,450 has been spent on routine construction. The Station upgrade is 99 percent completed. Construction of the Station 3 reactor will start in the spring. The Board will be voting on a bid related to this later in the evening. The GIS project is now 100 percent completed. That will be the base for the outage management system. It will be ready in February or March. RMLD is still installing moremeters to expand the mesh network. Year-to-date,$1.329 million has been spent of the budgeted $7.685 million.That leaves approximately$6.4 million to go. Pole inspections will start on Monday.650 poles are tested annually.There are 249 porcelain cutouts that still need to be replaced.There were no substation hot spots:infrared scans showed no problems. Systemwide, RMLD has 74 transfers to do. RMLD is trying to pull ten pole butts a week. However, more upgrades mean more double poles. Mr. Jaffari then moved on to the outage management reliability indices, SAIDI CAIDI and SAIFI, which are all below national and regional averages. Mr. Stempeck clarified that those numbers are through September. Mr. Jaffari explained that the October storm will increase the numbers, but RMLD will still be below the national and regional averages. Mr. Kelley stated that the tree trimming average in 2012 and 2017 was 4.58 per month.The last three months,the average has been I 1 per month. Mr.Kelley stated that it seems like RMLD is spending money cutting trees back, but tree-caused outages seem to be increasing. Mr. Jaffari explained that the tree trimming program cannot prevent all outages. Even if winds are onlyl0 mph, if the roots are not strong-trees come down. Even if you have an excellent tree trimming program it depends on the situation.There's also many trees private property trees we can't trim. We can only do main lines. Mr. Stempeck if you look at total number as opposed to percentages, equipment-caused outages show a substantial reduction. Mr. Kelley asked what is considered an "unknown" outage cause. Mr. Jaffari replied that during outage troubleshooting,sometimes we get there and it's unexplained.You would expect to see an animal but there isn't one on the scene. Mr. Kelley asked how restorations are prioritized during a storm. Mr. Jaffari explained that the main feeder takes priority, unless there are dangerous situations,such as downed wires.Those would be dealt with first. Mr. Kelley asked if the new outage management program will allow RMLD to react faster. Mr. Jaffari answered if the main line is out it will still take time to patrol for the problem. Once the feeder is on then it will be easier. The smart grid switches will automatically isolate the faulted section in a matter of seconds,but right now we're doing it manually. RMLD Procurement Requests Requiring Board Approval(Attachment 6) Before moving on to the bid proposals,Chair Pacino stated that he received an e-mail from a bidder on a project, introducing himself. Chair Pacino stated that the Department has a procurement process for reviewing and approving bids and he expects that will be followed.Anyone who wants to reach out to him is wasting their time. IFB 2018-11 Tree Trimming Services Mr.Jaffari stated that two companies responded:Mayer Tree Services and The Davey Tree Expert Company.The lowest responsible and responsive bidder was Mayer Tree Services. Davey's checked off that they didn't take any exceptions but they didn't provide a variety of documents that RMLD required. Mayer Tree Services didn't take any exceptions and RMLD has received exceptional service from them in the past.Mr. Jaffari explained that there is no number in the bid motion because there are many variables.The tree trimming budget for FYI is $852,000, but we don't know how many storms there will be. The cost differential between the two bidders was$8,000. Mayer was a little bit more over a period of three years. 4 RMLD Procurement Requests Requiring Board Approval(Attachment 6) IFB 2018-11 Tree Trimming Services There was debate amongst the Board the motion should include a not to exceed$850,000 clause. Chair Pacino suggested adding "various rates as specified in bid" and the Board agreed this was satisfactory. Mr. O'Rourke made a motion,seconded by Vice Chair Hennessy,that bid IFB 2018-11 for:Tree Trimming Services be awarded to: Mayer Tree Service, Inc., at the various rates specified in the bid, pursuant to Massachusetts General Law Chapter 30 Section 39M, as the lowest responsible and eligible bidder on the recommendation of the General Manager. This is a one-year contract beginning January 1, 2018, with an RMLD option for two additional one-year terms. Motion Carried 4:0:0. IFB 2018-12 Current Limiting Reactor Construction and Installation at Station 3 I Mr. Jaffari said that RMLD received sealed construction bids from Mass Bay Electrical Corp., Murphy, Valiant Electric, LLC, and Power Line Contractors.The lowest responsive and responsible bidder was Mass Bay Electrical Corp. The project was budgeted for$165,000, and the construction is scheduled to start in April. f { Mr.O'Rourke made a motion,seconded by Vice Chair Hennessy,that bid IFB 2018-12 for:Current Limiting Reactor Construction and Installation at Station 3 be awarded to: Mass Bay Electrical Corp. for $153,920, pursuant to Massachusetts General Law Chapter 30 Section 39M, as the lowest responsible and eligible bidder on the recommendation of the General Manager. Motion Carried 4:0:0. General Discussion Chair Pacino announced that the Subsequent Town Meeting will be on Monday, November 13.The next Board Meeting will be on December 14.The next CAB meeting will be on Wednesday, November 15. None of the Commissioners could immediately commit to attending so Ms.Schultz agreed to circulate an email. Executive Session At 8:52 p.m. Mr. O'Rourke made a motion, seconded by Vice Chair Hennessy, that the Board go into Executive Session to consider the purchase of real property and to return to regular session for the sole purpose of adjournment. Chair Pacino called for a poll of the vote: Mr. O'Rourke: Aye; Chair Pacino: Aye; Vice Chair Hennessy: Aye; Mr. Stempeck: Aye. Motion Carried 4:0:0. i Adjournment Mr. O'Rourke made a motion,seconded�,by Vice Chair Hennessy,to adjourn the Regular Session. Motion carried 4:0:0. A true copy of the RMLD Board of Commissioners minutes as a roved ffy�a/majority of the Commission. David Hennessy,Secre ry Pro Tem RMLD Board of Commissioners 5 POWER SUPPLY REPORT NOVEMBER 2017 ATTACHMENT 2 *RMLD INTER GRATED RESO BOARD OF COMMISSIONERS MEETING January 25, 2018 Reporting forNouember, 201 Jane Parenteau, Director of Integrated Resources A S HYDRO Power November 2013-2017 7,000 14.00% 13.00% 6,000 12.00% >- tM Q) 11.00% C 10.00% 0 5,000 4— E 0 9.00% cu co 41 4,000 8.00% cu p a) 7.00% 3,000 6.00% 5.00% 2,000 --- ---- — - ------- 4.00% 2013 2014 2015 2016 2017 �®Hydro--m—W-h—i 3,178 4,859 3 729 1 , 3,269 6,741 %of total mWh, 5.75% 8.94% 7.05% 6.2656 13.01% Hydro mWh ®%of total mWh WIND Power November 2013-2017 2,500 - -- ---- -- ------ - — — 5.00% 4.50% 2,000 — - 4.00% 3.50% a� 3 1,500 --- - — -- — $00% -8.50% 1,000 — ---- -- — — -- 2.00% to -g.50% a) 500 - -- —---- ---- t00% 0.50% _ _ o 2013 i 2014 7 2015 -_ 2016_ I 2017 — mWh 0 0 —� 1,584 _ 2,032 2,379 %f total 0.00% 0.00% 3.00% i 3.89% 4.59% --- —— — - — -- —J mWh —%of total SOLAR Power November 2013-2017 300 —-- - ----- ---- --- --- - ---- 0.50% 0.45% 250 --- -- ------ - - - -- - - 0.40 200 ---- - 0.35% v 0 0.30% n 0 150 - ---- - - -- -- - ---- 0.25% o ai on 0.20% c 100 - -- - --- --- `�' 0.15% a 50 ---- — -- - -- 0.10% 0.05% 0 12013 2014 2015 2016 ,-- 2017 0.00% I�m W h 1 - 0 0 169 _ 159_ -� 246_- --i ®%of total 0.00% 0.00% 0.32% 0.30%_- 0_47% ®mWh %of total C All Renewables November 2013-2017 7,000 — 20.00% 18.00% 6,000 16.00% c O 5,000 - - — 14.00% 0 12.00% L° 4,000 - --- - — — °' . c L W 10.00% co O 3,000 -- - — 8.00% o (V to co 2,000 -- - - - ---- -- - - 6.00 (D U 4.00% a 1,000 - ---- 2.00% _ o 0 2013 -- 2014 2015 2016 2017 —� 0.00% HYDRO ( 3,178 4,859 3,729 3,269 6,741 J WINDD' ( 0 — 0 1,584 _—_2,032 2,379 SOLAR 0 I 0 169 159 246 )—%of Renew. --- 5.75% _ 8.94%—�----10.37% `- 10.46% 18.07% �HYDRO �WIND —SOLAR —%of Renew. To: Coleen O'Brien From:;, A�Maureen McHugh, Jane Parentea Date: January 17,2017 Subject: Purchase Power Summary—November, 2017 i Energy Services Division(ESD)has completed the Purchase Power Summary for the month of November, 2017. I i ENERGY The RMLD's total metered load for the month was 51,413,226 kWh,which is a 1.14% decrease from the November,2016 figures. Table 1 is a breakdown by source of the energy purchases. Table 1 Amount of Cost of %of Total Total$ $as a Resource Energy Energy Energy Costs % (kWh) ($/Mwh) Millstone#3 1,825,412 $6.72 3.52% $12,270 0.51% Seabrook 5,728,285 $5.92 11.05% $33,932 1.40% Stonybrook Intermediate 0 $0.00 0.00% -$594 -0.02% Shell Energy 9,592,980 $59.75 18.51% $573,199 23.62% NYPA 2,631,929 $4.92 5.08% $12,949 0.53% EDF 1,386,000 $27.39 2.67% $37,963 1.56% ISO Interchange 6,522,932 $48.80 12.58% $318,347 13.12% Nema Congestion - $0.00 0.00% $107,621 4.43% Coop Resales 11,687 $153.90 0.02% o $1,799 0.07/0 .BP Energy 8,133,830 $46.78 15.69% $380,500 15.68% Hydro Projects' 4,109,398 $71.28 7.93% $292,907 12.07% Braintree Watson Unit 279,915 $112.09 0.54% $31,376 1.29% Saddleback/Jericho Wind 2,378,671 $90.68 4.59% $215,686 8.89% One Burlington&Comm.Solar 246,035 $72.24 0.47% $17,773 0.73% Exelon 8,957,200 $42.80 17.28% $383,345 15.80% Stonybrook Peaking 32,007 $242.98 0.06% $7,777 0.32% Monthly Total 51,836,281 $46.82 100.00% $2,426,851 100.00% 'Pepperell, Woronoco,indian River,Turner Falls,Collins,Pioneer,Hosiery Mills,Aspinook Hydro Table 2 breaks down the ISO interchange between the DA LMP Settlement and the RT Net Energy for the month of November, 2017. I Table 2 Amount Cost % of Total Resource of Energy of Energy Energy (kWh) ($/Mwh) ISO DA LMP* 14,663,318 $39.14 28.29% Settlement RT Net Energy ** (8,140,470) $31.40 -15.70% Settlement ISO Interchange 6,522,848 $48.80 12.58% (subtotal) "Independent System Operator Day-Ahead Locational Marginal Price i NOVEMBER 2017 ENERGY BY RESOURCE I , Stonybrook Pk, i lei irho l^.'tad Solar Nic,jcres'1'`'-.) 0,47% 4 Seabrook Stonybrook atter, 11.U5h O.Uu°6 Exeion ', 17. I • Sadd1ebark' 8% t . I 5 Shell Energy 18.51% i .t Comp resala1 0_07% iiP t n�rty t NYPA Vnti la.'vJ,a 5108% 2.5TXs ISO Interchange 12.58% CAPACITY The RMLD hit a demand of 93,994 M,which occurred on November 28, at 6 pm. The RMLD's monthly UCAP requirement for November,2017 was 222,570 Ms. Table 3 shows the sources of capacity that the RMLD utilized to meet its requirements. Table 3 Source Amount(kWs) Cost($/kW-month) Total Cost$ %of Total Cost Millstone#3 4,950 27.45 $135,858 6.31% Seabrook 7,909 22.89 $181,051 8.41% Stonybrook Peaking 24,980 2.36 $59,009 2.74% Stonybrook CC 42,925 3.30 $141,797 6.59% NYPA 0 0.00 -$12,119 -0.56% Hydro Quebec 0 0 -$43,494 -2.02% Braintree Watson Unit 0 0.00 $22,644 1.05% ISO-NE Supply Auction 141,806 11.76 $1,667,232 77.47% t Total 222,570 $9.67 $2,151,979 100.00% r i I Table 4 shows the dollar amounts for energy and capacity per source. Table 4 Cost of %of Amt of Energy Power Resource Energy Capacity Total cost Total Cost (kWh) ($/kWh) Millstone#3 $12,270 $135,858 $148,128 3.24% 1,825,412 0.0811 Seabrook $33,932 $181,051 $214,984 4.70% 5,728,285 0.0375 Stonybrook Intermediate -$594 $141,797 $141,204 3.08% 0,0000 I Hydro Quebec $0 443,494 -$43,494 -0.95% - 0.0000 Shell Energy $573,199 $0 $573,199 12.52% 9,592,980 0.0598 NextEra/EDF $37,963 $0 $37,963 0.83% 1,386,000 0.0274 'r NYPA $12,949 -$12,119 $830 0.02% 2,631,929 0.0003 ISO Interchange $318,347 $1,667,232 $1,985,579 43.36% 6,522,932 0.3044 Nema Congestion $107,621 $0 $107,621 2.35% - 0.0000 BP Energy $380,500 $0 $380,500 8.31% 8,133,830 0.0468 Hydro Projects $292,907 $0 $292,907 6.40% 4,109,398 0.0713 Braintree Watson Unit $31,376 $22,644 $54,021 1.18% 279,915 0.1930 * Saddleback/Jericho $215,685 $0 $215,686 4.71% 2,378,671 0.0907 * Burlington&Community Solar $17,773 $0 $17,773 0.39% 246,035 0.0722 Coop Resales $1,799 $0 $1,799 0,04% 11,687 0.1539 Exelon Energy $383,345 $0 $383,345 8.37% 8,957,200 0.0428 Stonybrook Peaking $7,777 $59,009 $66,786 1.46% 32,007 2.0866 Monthly Total $2,426,851 $2,151,979 $4,578,830 100.00% 51,836,281 0.0883 * Renewable Resources 18.07% i RENEWABLE ENERGYCERTIFICATES (RECs) Table 5 shows the amount of banked and projected RECs for the Swift River Hydro Projects through November, as well as their estimated market value. Table 5 RECs Summary j Period- January 2017-November 2017 I Banked Projected Total Est. RECs RECs RECs Dollars Woronoco 0 5,352 5,352 $85,632 Pepperell 0 3,616 3,616 $57,856 Indian River 0 1,798 1,798 $28,769 Turners Falls 0 1,511 1,511 $24,176 Saddleback 0 12,171 12,171 $194,736 Jericho 0 6,487 6,487 $103,792 Sub total 0 .30,935 30;935 494,961 RECs Sold $0 0 $0 Grand Total 0 30,935 30,935 $494,961 TRANSMISSION The RMLD's.total transmission costs for the month of November,2017 were$1,018,655. This is a decrease of 19.75% from the October transmission cost of$1,269,309. In November, 2016 the transmission costs were$865,917. f Table 6 i i Current Month Last Month Last Year Peak Demand(kW) 103,397 99,845 95,704 Energy(kWh) 51,836,281 53,460,403 52,217,414 Energy($) $2,426,851 $2,054,057 $2,545,398 Capacity($) $2,151,979 $2,111,981 $1,630,243 Transmission($) $1,018,655 $1,269,309 $865,917 Total $5,597,485 $5,435,348 $5,041,558 PROPOSED RATE FOR SOLAR CHOICE PROGRAM ATTACHMENT 3 Town of Reading,Massachusetts MDPU#278 supersedes Municipal Light Department and cancels MDPU#264 Solar Choice Available in: Reading, Lynnfield Center, North Reading, and Wilmington Applicable to: The Solar Choice Program is RMLD's implementation of the Community Shared Solar model which meets Mass DOER eligibility criteria to qualify as a Community Shared Solar Generation Unit as defined under 225 CMR 14.02. The Solar Choice(SC)Rate is available to all customers of good credit standing receiving service under any rate schedule of the Department, subject to availability of the Solar Choice Program capacity. This rate will be an additional charge to the existing RMLD rate. The Solar Choice Business(SCB)Rate and Solar-,.Choice Business Plus is available to all commercial, industrial and municipal customers of good,credit standing, subject to availability of Solar Choice Program.capacity. SCB will be equal to 5 times the amount.of Solar Choice. SCB Plus will be equal to-multiples of SCB not to exceed 25%of project capacity, subject to availability. The initial SC Rate shall be $5:00/month and the initial SCB Rate shall be $25.00%month. The SC/SCB Rate will be-adjusted every six.months based on actual project performance. The SC/SCB Rate will be,the net total of SC/SCB Component Charges and Credits calculated prior to each six-month period based on budgeted expenses/savings from the SC/SCB Programs and will be trued up to actual expenses/savings,with any adjustment being carried forward to the next six-month period using the formulas defined below. SC/SCB Energy Component;Charge: SC/SCB Energy.Component, in$/kWh/Month=(SC/SCB Project PPA Rate)— (Fuel Charge Rate) Monthly SC/SCB Project Solar Production per SC/SCB share=(The total monthly solar production, in'kWh,produced by the SC/SCB Project)/(Total number of SC/SCB shares for that SC/SCB Project) SC/SCB Energy Component Charge, in S/Month=(SC/SCB Energy Component)x(Monthly SC/SCB Project Solar Production per SC/SCB share) Rate Filed: TBD Effective: On Billings on or After February 1,2018 Filed By: Coleen M. O'Brien,General Manager Town of Reading,Massachusetts MDPU#278 supersedes Municipal Light Department and cancels MDPU#264 Note: For any month where the Fuel Charge Rate is greater than or equal to the SC/SCB Project PPA Rate, the SC/SCB Energy Component Charge will be a Credit for that month. SC/SCB Capacity Component Credit: For each six-month period, the SC/SCB Capacity Component Credit will be calculated based on the actual solar production output of the SC/SCB Project for that period and any Capacity Payment savings earned as a result of the SC/SCB Project output will be paid out as credits during the following six-month period. The SC/SCB Capacity Component Credit will be calculated as follows: SC/SCB Capacity Component Credit per SC/SCB share, in$ _ (The total Capacity Payment or other Program savings, in$, earned for that period as a result of the solar power produced by the SC/SCB Project during the Capacity Peak Hour)/(Total number of SC/SCB shares for.that SC/SCB Project) SC/SCB Transmission Component Credit: For each six-month period, the SC/SCB Transmission Component Credit will be calculated based on the actual solar production output of the SC/SCB Project for the completed six-month period and any Transmission Payment savings earned for that period as a result of the SC/SCB Project output will be paid out as credits during the following six-month period. The SC/SCB'Transmission Component Credit will be calculated as follows: SC/SCB.Transmission Component Credit per SC/SCB share, in $ _ (The total Transmission Payment savings, in $,'earned for that period as a result of the solar power produced by the SC/SCB Project during Transmission Peak Hours) / (Total number of SC/SCB shares for that SC/SCB Project) SC/SCB Rate: The SC/SCB Rate will be the total SC/SCB Charge/Credit, calculated as shown below. This Charge or Credit will be added to each participating customer's monthly bill. SC/SCB Rate=(SC/SCB Energy Component Charge, in$)—(SC/SCB Capacity Component Credit, in$)—(SC/SCB Transmission Component Credit, in$) Note: For any specific month, this total bill adjustment may be positive (cost to the customer) or negative(savings to the customer). Rate Filed: TBD Effective: On Billings on or After February 1,2018 Filed By: Coleen M. O'Brien, General Manager Town of Reading,Massachusetts MDPU#278 supersedes Municipal Light Department and cancels MDPU#264 Terms: A customer electing to be billed under this rate must be of good credit standing and shall remain on this rate for a minimum of ten years. After ten years on this rate a customer may elect to remain on this rate or discontinue it. If the RMLD does not receive an SC/SCB Rate termination request from the customer, it will be assumed that the customer elects to continue to be billed under this rate. A thirty-day notice is required from customers who will no longer be able to participate in the SC/SCB Rate. Since the number of participants/SC/SCB shares are-limited for each SC/SCB Project, shares will be issued on a"first come/first served" basis and/of through a"lottery" system at the discretion of the RMLD. The RMLD will maintain a"waiting list" which will be used to replace any customers who must leave the program and/or for new SC/SCB Projects as they become available. Any customers signing up for the SC/SCB Rate after the initial twelve months are subject to a one-time enrollment fee equal to the total first year payments made by the initial participants. After that enrollment fee has been paid,they will then begin receiving the current monthly SC/SCB Rate program billing adjustment. This rate will be subject to termination in the event that the RMLD is unable to procure power from the SC/SCB Project, or costs become prohibitive. General Terms and Conditions: Service hereunder is subject to the General Terms'and Conditions which are incorporated herein and are 'a-part of this rate schedule: Rate Filed: TBD Effective: On Billings on or After February 1,2018 Filed By: Coleen M. O'Brien, General Manager FINANCIAL REPORT NOVEMBER 2017 ATTACHMENT 4 Town of Reading, Massachusetts Municipal Light Department Statement of Net Assets 11/30/2017 I 2018 2017 ASSETS j Current: Unrestricted Cash $16,254,199.60 $14,482,164.40 Restricted Cash 29,547,224.82 22,954,343.33 Restricted Investments 1,329,906.48 1,345,663.06 Receivables, Net 8,813,442.14 9,592,381.08 Prepaid Expenses 879,009.36 1,126,193.95 Inventory 1,550,451.23 1,639,843.30 j Total Current Assets 58,374,233.63 51,140,589.12 Noncurrent: Investment in Associated Companies 212,427.92 26,993.75 1 Capital Assets, Net 76,553,740.05 72,873,194.92 Total Noncurrent Assets 76,766,167.97 72,900,188.67 Deferred Outflows-Pension Plan 4,135,078.00 6,338,218.00 I TOTAL ASSETS 1.39,275,479.60 130,378,995.79 LIABILITIES Current i Accounts Payable 7,194,120.12 6,047,760.62 Accrued Liabilities 424,050.02 668,419.16 Customer Deposits 1,127,120.57 1,013,683.17 Customer Advances for Construction 1,167,076.49 1,003,670.84 Total Current Liabilities 9,912,367.20 8,733,533.79 i Nan-current Accrued Employee Compensated Absences 3,150,134.05 3,257,809,00 Net OPEB Obligation 138,068.00 0.00 Net Pension Liability 13,076,538.00 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 y 26,991,995.25 21,708,063.79 NET POSITION I Invested in Capital Assets, Net of Related Debt 76,553,740.05 72,873,194.92 Restricted for Depreciation Fund 4,488,607.68 5,398,965.79 Restricted for Pension Trust 5,683,014.26 0.00 Unrestricted 25,558,122.36 30,398,771.29 TOTAL NET POSITION 112,283,484.35 108,670,932.00 Total Liabilities and Net Assets 139,275,479.60 130,378.995.79 i Town of Reading, Massachusetts Municipal Light Department Schedule of Cash and Investments 11/30/2017 i 2018 2017 Unrestricted Cash Cash-Operating Fund $16,250,699.60 $14,479,164.40 I Cash-Petty Cash 3,500.00 3,000.00 Total Unrestricted Cash 16,254,199.60 14,482,164.40 Restricted Cash Cash-Depreciation Fund 4,488,607.68 5,398,965.79 Cash-Town Payment 1,642,495.85 1,583,611.65 I Cash-Deferred Fuel Reserve 6,221,006.78 5,040,513.53 Cash-Rate Stabilization Fund 6,921,241.81 6,843,853.44 Cash-Pension Trust 5,683,014.26 0.00 Cash-Uncollectible Accounts Receivable 200,000.00 200,000.00 Cash-Sick Leave Benefits 1,844,122.03 1,933,143.36 Cash-Hazard Waste Reserve 750,000.00 150,000.00 Cash-Customer Deposits 1,127,120.57 1,013,683.17 Cash-Energy Conservation 669,615.84 790,572.39 Total Restricted Cash 29,547,224.82 22,954,343.33 i Investments ! Sick Leave Buyback Y 1,329,906.48 1,345,663.06 Total 47,131,330,90 38,782,170.79 I ! i TOWN OF READING, MASSACHUSETTS MUNICIPAL LIGHT DEPARTMENT RECONCILIATION OF CAPITAL FUNDS 11/30/20`17 i SOURCE OF CAPITAL FUNDS: i DEPRECIATION FUND BALANCE 7/1117 2,406,969.15 CONSTRUCTION FUND BALANCE 7/1117 2,500,000.00 INTEREST ON DEPRECIATION FUND FY 18 24,442.05 DEPRECIATION TRANSFER FY 18 1,794,162.10 WEST STREET-MASS DOT 0.00 1 TOTAL SOURCE OF CAPITAL FUNDS 6,725,573.30 USE OF CAPITAL FUNDS: ADDITIONS TO PLANT THRU NOVEMBER TOTAL USE OF CAPITAL FUNDS 2,236,965.62 I GENERAL LEDGER CAPITAL FUNDS BALANCE 11/30117 4,488,607.68 I Town of Reading,Massachusetts Municipal Light Department Business Type Proprietary Fund Statement of Revenues,Expenses and Changes in Fund Net Assets 11/30/2017 Month Month Year to Date Year to Date Percent Operating Revenues Current Year Last Year Current Year Last Year Change Base Revenue $1,918,118.07 $1,881,294.06 $11,383,816.88 $11,552,607.77 (1.5%) Fuel Revenue 1,937,722.48 2,423,759.46 12,331,819.39 14,556,479.72 (15.3%) Purchased Power Capacity 2,872,240.96 2,407,844.25 16,767,905.83 15,377,310.66 9,0% Forfeited Discounts 69,862.58 65,493.09 363,448.02 390,456.56 (6.9%) Energy Conservation Revenue 47,942.98 47,830.19 287,974.06 299,791.44 (3.9%) NYPA Credit (85,526,30) (68,804.25) (402 074.50) (443 344 76) (9 3%) Total Operating Revenues 6,760,358.77 6,757,616.80 40,732,889.68 41,733,301.39 (2.4%) Expanses Power Expenes: 547 Purchased Power Fuel Expense 2,429,457.03 2,545,398.43 11,729,365.93 14,189,496.10 (17.3%) 560 Purchased Power Capacity 2,162,079.85 1,634,731.43 10,592,986.89 8,470,768.06 25.1% 565 Purchased Power Transmission 1,018,655.35 865,916.73 6,599,463.98 6,227.690.59 6 0% Total Purchased Power 5,610,192.23 5,046,046.59 28,921,816.80 28,887,954.75 0.1% Operations and Maintenance Expenses: i 580 Supervision and Engineering Labor&Expense 65,532.80 41,392.29 224,726.75 202,859.74 10.8% 581 Station Supervisor Labor&Expense 13,503.73 15,293.80 61,764.41 60,321.94 2.4% 581 Line General Operational Expense 58,323.39 61,820.80 272,941.46 254,676.27 7.2% 582 Control Room Labor&Expense 41,817.93 48,117.33 166,022.41 209,980.06 (20.9%) 585 Street Lighting Operation&Maintenance 7,008.58 10,418.67 7,057.62 123,606.61 (94.3%) 586 Meter General Labor&Expense 23,051.32 23,409.52 102,589.95 67,398.74 17.4% 588 Materials Management 48,235.19 34,407.15 201,750.44 163,806.61 23.2% 590 Maintenance of Structures and Equipment 56,126.92 59,463.20 182,257.52 213,428.76 (14.6%) 593 Maintenance of Lines-Overhead 129,549,60 213,586.58 652,708.15 765,119.12 (14.7%) 594 Maintenance of Lines-Underground 11,056.13 13,536.23 49,151.83 129,772.26 (62.1%) j 595 Maintenance of Line Transformers 14,648.80 _ 0.00 15 127.55 17,923.39 (15.6%) Total Operations and Maintenance Expenses 468,854.39 521,445,57 1,936,098.11 2,228,893.50 (13.1%) i General&Administration Expenses: i 902 Meter Reading 1,355.58 1,201.27 11,838.97 11,178.17 6.9% i 903 Customer Collections 131,061.05 136,058.07 664,943.87 709,476.50 (6.3%) 904 Uncollectible Accounts 12,500.00 12,500.00 62,500.00 62,500.00 0.0% 916 Energy Audit 52,445.95 64,057.21 194,809.48 209,321.40 (6.9%) 916 Energy Conservation 62,612.94 66,571.16 221,301.37 226,637.29 (2.4%) 920 Administrative and General Salaries 93,396.44 87,911.57 440,325.02 405,719.33 8.5% 921 Office Supplies and Expense 29,515.16 28,849.77 122,745.03 106,394.17 15.4% 923 Outside Services 96,954.25 83,949.18 273,408.75 196,820,19 38.9% 924 Property Insurance 28,148,99 27,632.72 140,744.95 138,635.60 1.5% 925 Injuries and Damages 2,984.86 6,071.09 24,320.37 23,199.77 4.8% 926 Employee Pensions and Benefits 267,690.00 239,841.95 1,300,816.50 1,246,717.32 4.3% 930 Miscellaneous General Expense 19,816.16 15,972.63 60,496.06 57,468.14 5.3% 931 Rent Expense 13,917.58 13,883.02 82,633.41 69,140.89 19.5% 933 Transportation Expense 47,227.18 0.00 114,601.70 0.00 100.0% 933 Transportation Expense Capital Clearing (31,015,64) 0.00 (150,851.70) 0.00 100.0% 935 Maintenance of General Plant 66,620.66 17,570.30 163,962.95 104,613.37 56.7% 935 Maintenance of Building&Garage 50,113.71 33,434.47 189,870.05 214,344.87 (11.4%) Total General&Administration Expenses 945,344.87 835,504.41 3,918,466.78 3,782,167.01 3.6% Other Operating Expenses: 403 Depreciation 358,832.42 341,775,67 1,794,162.10 1,708,878.35 5.0% 408 Voluntary Payments to Towns 126,851.67 118,000.00 634,258.35 590,000.00 7.5% Total Other Expenses 485,664'.09 459,775.67 2,428,420.45 2,298,878.35 5.6"5 Operating Income (749,716.81) (105,155.44) 3,528,087.54 4,535,407.78 (22.2%) Non Operating Revenues(Expenses): 419 Interest Income 20,767.75 13,363.91 92,058.41 57,987.14 58.8% 419 Other 15,870.90 122,600.00 305,679.60 257,611.80 16.7% 426 Return on Investment to Reading (201,647.50) (198,722.33) (1,008,237.50) (993,611.65) 1.5% 431 Interest Expense _ (430.82) (186.71) (2.163.14 965.31) 124.1% Total Non Operating Revenues(Expenses) (165,439.67) (62,945.13) (612.662.63) (678.978.02) (9.8%) Change in Net Assets (915,156.48) (168,100.57) 2,915,424.91 3,856,429.76 (24.4%) Net Assets at Beginning of Year 109,358,059,44 104,814,487.24 109,368,059.44 104,814,487.24 4.3% Ending Net Assets 4 3.3% Town of Reading, Massachusetts I Municipal Light Department Business Type Proprietary Fund Actual Year to Date as Compared to Budgeted FY18 Profit Loss Statement 11/30/2017 Actual Budget Remaining Remaining Year to Date Full Year Budget Budget% I Operating Revenues I Base Revenue $11,383,816.88 $26,337,621.00 $14,953,804.12 56.8% Fuel Revenue 12,331,819.39 32,491,810.00 20,159,990.61 62.0% Purchased Power Capacity 16,767,905.83 38,088,978.00 21,321,072.17 56.0% ' Forfeited Discounts 363,448.02 800,000.00 436,551.98 54.6% Energy Conservation Revenue 287,974.06 675,000.00 387,025.94 57.3% NYPA Credit (402,074.50) (1,200,000.00) (797 925.50) 66.5% Total Operating Revenues 40,732,889.68 97,193,409.00 56,460,519.32 58.1% i Expenses iPower Expenses: ' 547 Purchased Power Fuel Expense 11,729,365.93 31,291,810.00 19,562,444.07 62.5% 555 Purchased Power Capacity 10,592,986.89 24,476,161.00 13,883,174.11 56.7% 565 Purchased Power Transmission 6,599,463.98 13,612,817.00 7,013,353.02 51.5% Total Purchased Power 28,921,816.80 69,380,788.00 40,458,971.20 58.3% Operations and Maintenance Expenses: i 580 Supervision and Engineering Labor& 224,726.75 764,615.00 539,888.25 70.6% 581 Station Supervisor Labor&Expense 61,764.41 130,662.00 68,897.59 52.7% 581 Line General Operational Expense 272,941.48 596,007.00 323,065.52 54.2% 582 Control Room Labor&Expense 166,022.41 466,783.00 300,760.59 64.4% 585 Street Lighting Operation&Maintenance 7,057.62 156,893.00 149,835.38 95,5% 586 Meter General Labor&Expense 102,589.95 212,909.00 110,319.05 51.8% 588 Materials Management Labor&Expense 201,750.44 458,328.00 256,577.56 56.0% 590 Maintenance of Structures and Equipment 182,257,52 494,936.00 312,678.48 63.2% 593 Maintenance of Lines-Overhead 652,708.15 1,980,611.00 1,327,902.85 67.0% 594 Maintenance of Lines-Underground 49,151.83 197,002.00 147,850.17 75.1% 595 Maintenance of Line Transformers 15,127.55 300,000.00 284,872.45 95.0% Total Operations and Maintenance Expenses 1,936,098.11 5,758,746.00 3,822,647.89 66.4% General&Administration Expenses: 902 Meter Reading 11,838.97 37,461.00 25,622.03 68.4% 903 Customer Collection 664,943.87 1,869,393.00 1,204,449.13 64.4% 904 Uncollectible Accounts 62,500.00 150,000.00 87,500.00 58.3% 916 Energy Audit 194,809.48 509,232.00 314,422.52 61.7% 916 Energy Conservation 221,301.37 952,565.00 731,263.63 76.8% 920 Administrative and General Salaries 440,325.02 1,017,151.00 576,825.98 56.7% ! 921 Office Supplies and Expense 122,745.03 350,000.00 227,254.97 64.9% 923 Outside Services 273,408.75 759,191.00 485,782.25 64.0% 924 Property Insurance 140,744.95 427,200.00 286,455.05 67.1% 925 Injuries and Damages 24,320.37 52,613.00 28,292.63 53.8% i 926 Employee Pensions and Benefits 1,300,816.50 3,000,437.00 1,699,620.50 56.6% 930 Miscellaneous General Expense 60,496.06 179,215.00 118,718.94 66.2% 931 Rent Expense 82,633.41 212,000.00 129,366.59 61.0% 933 Transportation Expense 114,601.70 381,116.00 266,514.30 69.9% 933 Transportation Expense Capital Clearing (150,851.70) (301,596.00) (150,744.30) 50.0% 935 Maintenance of General Plant 163,962.95 281,880.00 117,917.05 41.8% 935 Maintenance of Building&Garage 189,870.05 666,457.00 476,586.95 71.5% Total General&Administration Expenses 3,918,466.78 10,544,315.00 6,625,848.22 62.8% i Town of Reading, Massachusetts Municipal Light Department Business Type Proprietary Fund Actual Year to Date as Compared to Budgeted FY18 Profit Loss Statement i 11/30/2017 Other Operating Expenses: 403 Depreciation 1,794,162.10 4,362,000.00 2,567,837.90 58.9% 408 Voluntary Payments to Towns 634,258.35 1,500,000.00, 865,741.65 57.7% Total Other Expenses 2,428,420.45 5,862,000.00 3,433,579.55 58.6% Operating Income 3,526,087.54 5,647,560.00 2,119,472.46 Non Operating Revenues(Expenses): 419 Interest Income 92,058.41 150,000.00 57,941.59 38.6% 419 Other Income 305,679.60 890,000.00 584,320.40 65.7% 426 Return on Investment to Reading/Loss on Disposal (1,008,237.50) (2,570,438.00) (1,562,200.50) 60.8% 431 Interest Expense (2,163.14) (2 500.00) (336.86) 13.5% Total Non Operating Revenues(Expenses) (612,662.63) (1,532,938.00) (920.275.37) 60.0% j Net Income $2,915,424.91 $4,114,622.00 $1,199,197.09 1 I 'r I I I I I I I i f I I I I I I READING MUNICIPAL UG14T DEPARTMENT FISCALYEAR2MEOPERATING BUDGET ACTUALJULY 2017-NOVEMBER2017 AND REMAINING FIXED AND SEMI-VARIABLE COSTS JuIV2017-Nov 2017 REMAINING FY18 %of 110tal Budget.. IFIXEDCOSTS: NUOPERATINGBUDGET ACTUAL 5mos. BALANCE $ 94,118,787 Purchased Power-Fuel $ 31,291,810 $ 22,314,349 $ 8,971,461 3325% Purchased Power-Capacity $ 24,476,161 S 6,599,464 $ 17,876,697 26.01% Purchased Power-Transmission $ 13,612,817 $ 8,004 $ 13,604,813 14.46% Depreciation Expense $ 4,362,000 $ 1,794,162 $ 2,567,838 4.63% MscDeduction-ROI Reading $ 2,420,438 S 1008,238 $ 1,412,201 2.57% Town Payments $ 1,500,000 $ 634,25.8 $ 865,742 159% NEsc Deduction-Disposal Losses $ 1%000 $ - $ 150,000 0.16% SUB-TOTAL S 77,813,226 $ 32,358,475 $ 45,454,751 8-68% SEMI VARIABLE COSTS: Labor $ 6,376,181 $ 2,435,486 $- 3,940,695 6.77% Employee Benefits/Pension $ 3,000,437 $ 1,300,817 $ ._. 1,699,671 3.19% Other Operating andNbintExperises $ 1,953,597 $ 715,272 $ 1,238,325 2.08% Conservation Expenses $ 952,565 $ 221,301 $ 731,264 LMVO Overtime $ 763,517 $ 307,751 $ 455,766 0.81% Tree Trimming $ 886,340 $ 186,169 $ 700,171 0.94% Professional Services S 471,900 $ _ _254,251 $ _ 217,649 0.50% Property Insurance_ $ 427,200 $ 140,745 S 286,455 0.45% Office Supplies $ 350,000 $ 122,745 $ 227,255 0.37% Transformer(hazardous material) $ 300,000 $ 12,060 S - - _ 28.7,S.4.0 0.32.5 Training/Tuition $ 289,691 $ 19,158 $ 270,533 0.31% Vehicle $ 391,116 $ 114,602 $ 276,514 0.42% Vehicle Capital Clearing $ (30L596) S (150,852) $ (1M,744) -0.32% Rent Expense $ 212,000 $ 82,633 $ 129,367 0.23% Bad Debt Expense $ _150,000 $ - 62,500 $ 87.500 0.16% Injuries&Damages $ 52,613 $ 24,320 $ 28,293 0.06% RMLS/CAO $ 30,000 S 7,769 $ 22.231 0.0305 SUB-TOTAL S 16,305,561 S 5,856,728 S 10,448,833 17.32% TOTALS $ 94,118,787 $ 38,215,203 $ 55,903,584 100.00% ENGINEERING & OPERATIONS REPORT NOVEMBER 2017 ATTACHMENT 5 Engineering & Operations Report RMLD Board of Commissioners Meeting January 25, 2018 November 2017 Reporting Period Hamid Jaffari, Director of Engineering & Operations Engineering & Operations Capital Improvement Projects DESCRIPTION 100 (Distributed Gas Generation Pilot(Demand Management) 1, 100% 45,559r 186,56lif -_ - ._ _ - -- - - -- __ _ ---� - I�.�:: 102 ,Pad mount Switchgear Upgrade at Industrial Parks 8% 8,568 234,668 196,285 1(38,383)' �_�_ E_e__ v. �___ _ �103 1Grid Modernization and O timization i ' ���.� _ p On-going I 45,834, 97,310, 227,183; 129,873 _ '.- -___ 1_.-105 ,New Wilmington Substation 6% 18,986' 650,000 631,014 f -106 Underground Facilities Upgrades (URDs Manholes,etc.) On going f- 40,905` 109,498E 344,725 235,227 = -- - _ 107 13.8kV Upgrade (Step-down Areas etc. - } ._ pg ( p- ) On going 17,969 - 19,627 .__ 70,851 `- 51,224 1 108 it 15 kV Transmission Line Upgrade -1 1,192 � 10,499t 84,59-9 109 35 kV Underground Cable Upgrade Station 4,5 and RR ROW 0% - _ 0 206,817 206,817 - 110 J4W9 Getaway"Replacement Station 4 �` 100% T131 61 1 (131L6 1)� . •- .- _ _-. __ _ _ _ .._._.... .. _ ..._...-8181.. • - - .' - _., 1811._ .8188. __ __ 8888 _. _._. _. _. _- _ _ l l l Substation Equipment Upgrade On-going 50;2184 50,218 _ ... '1 12 1AMI Mesh Network Expansions On-going -11 � �A^ - �'�_ 120.31 1�� ^120,3 .. - --_ _ __- 1 116 Transformers&Capacitors - p On-going 5,643 5,643 560,500 554,857' 117 Meter Purchases _, =moi 4 (- � � L s - � On going 08 3,867 60,000, 56,133 125 0% - _ _._ -- - _ 151 10 24 96,802 218,726 121924; 1 t 126 Communication Equipment(Fiber Optic) �� On-going ?' I�---J__ _ _ g g 214,629 - 214,629 i I 130 Remote Terminal Unit(RTU) Replacement-Station 3 100% - - 24,600 - 27,164 - (27,164) �I T31�LED Street Lights Upgrade All Towns 45,51 Y69,332Lf � - f 84% I vL 324,180 1-�1 845,152, 133 Station 3: Relay Upgrades and SCADA Integration. 100% _ - 19,873 103 56 23 76, Ot" i - - 137 ,Pole Line Upgrade-Woburn Street (West to Concord),W T�' 10%%�' �� --1,200- 200,28 r - 199,084' 138 Station 3 Reactors 20% _ �-- = - --- -- = -- 57,992 561,347 403,355'. � 175 Pole Replacement Program On-oin I 145,440#1 _ , ,- �- 158,8681 209,0001 150,132' 458 Secondary and ram e Main Replacement Pro _ _p 9 i On-going - 15,074 -46,, 000 222,285 176,285:. various New Service Installations Residential/Commeraal/Industrial On W - -�1 _) /Ind Engineering & Operations Routine Capital Construction Description Pole Setting/Transfers $13,596 $68,858 Overhead/Underground $18,867 $134,041 Projects Assigned as Required - $78,446 Pole Damage/Knockdowns - Some Reimbursable • Work was done to repair or replace five (5) poles. $20,344 $56,682 -Station Group - $9,991 Hazmat/Oil Spills - - Porcelain Cutout Replacement Program - - Lighting (Street Light Connections) $11,144 $16,843 Storm Trouble $62,622 $67,116 Underground Subdivisions (new construction) • Nichols Street Extension, North Reading • 318 Haverhill Street, North Reading $3,688 $63,508 Animal Guard Installation - $415 Miscellaneous Capital Costs $4,687 $50,913 TOTAL 134 948 546 813 Facilities, IRD and IT Capital Projects/Purchases ACTUAL 1FY18 REMAINING' YTDL . Facilities 1,570 61,859 657,000 595,141 Integrated Resources Division (IRD) 6,184 14,808_ 35,000 20,192 Information Technology (IT) 11,529! 340,000 328,471' TOTAL CAPITAL SPENDING YTD (All Divisions) REMAINING BALANCEBUDGET• $584,377 - _.• - - - $2,236,964 -- _ ,, -----$7,685,521 - - - $5,448,557 Routine Maintenance Transformer Replacement (through October 2017) Pad mount 27.46% Overhead 18.65% Pole Inspection (as of 1/12/2018) 250 poles have been replaced 149 of 250 transfers have been completed Quarterly Inspection of Feeders (as of 1/12/2018) Inspected Circuits (Jul-Sep): 3W5, 3W7, 3W8, 3W 13, 3W 14, 3W 18 " Inspected Circuits (Oct-Dec): 4 Inspected Circuits (Jan-Mar): 3W7, 3W8,.3W 14, 3W 18,5W4, 5W5, 5W8, 5W9 Manhole Inspection (through November 2017) 961 of 1,237 manholes have been inspected. Porcelain Cutout Replacement (through November 2017). ,' . 91% complete 249 remaining to'be replaced Routine Maintenance (continued) Tree Trimming Nov: 86 spans YTD: 574 spans through October Substation Maintenance Infrared Scanning - through November complete - no hot spots found Underground Subdivisions Upgrade 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) Double Poles Town of Reading "-"k, Pole Jurisdiction l Ownership: 16,000 (approximately) '> 50% RMLD 50% Verizon C stodial: Reading - split (see map) North Reading - RMLD Lynnfield - Verizon Wilmington - Verizon {i'}\�`•-?`.' '?.:+�._"-r,.;� -} Town of Readin Vola Owner <knJv..Wi TELCO NJUNS "Next to Go" as of January 16,2018 -- READING NORTH READING WILMINGTON LYNNFIELD ; j i- - Count of - Count of Ticket Count Count Of Ticket NTG Member and JobType i-, Number Of Ticket NTG Member andlobType Number GCMC NR 12 NTG Member andlobType !-1' Ticket NTG Member and Job Type Number 'CMCiNR 5 =Comcast Massachusetts 0CMpNR 5 DRMLD 35. 'Comcast Massachusetts TRANSFER 12 OComcastMassachusetts C-ReatfirigMunidpalLightDepariment TRANSFER 5 TRANSFER 5 TRANSFER 31. E1NP3PMA a PULL POLE 4 ���� Non-partitipating3rd PartyAttacher- 3' Massachusetts uNRDGFD 37 DVZNE0R 57 Fri LynrtfieldFire Department - I TRANSFER 6 6 North Reading Fire Departme nt C-Verizon Massachusetts TRANSFER 3( TRANSFER 37 TRANSFER 53 EIRDNGFD $ PULLPOLE 4 DRMLD 5; E Reading Fire Department aReading Municipal Ught Department TRANSFER s BRMLD 33 TRANSFER 5! r_iReadingMunicipalUghtDepartment ='WDM 20 TRANSFER L3 CTown of Wilmington DRMED 79 TRANSFER 10 JVZNIESA 31 3 Reading Municipal Ught Department PULLPOLE 20 rlVerizonMassachusetts TRANSFER 21PULLPOLE 57 t TRANSFER 3; 9VZNEDR 23 JUYMIGI�D 76 (blank) r'Verizon Massachusetts reWilnirgtan Fire Departrnt Grand Total 16 `D-VZNESA 34 TRANSFER 76 Verizon Massachusetts TRANSFER 20 41(blank) TRANSFER 33 PULL POLE 3 Grand Total 178 PULL POLE 1 E(blank) ](blank) Grand Total 98 Grand Total 138 - i RML® Reliability Indices Minutes SAIDI 2012-2017 Minutes CAIDI 2012-2017 120.00 160.00 100.00 --- --- 95.45 --- ®2012 140.00 134.40 ®2012 80.00 ii=iiil 2013 120.00 2013 60.00 ----- - ----------------- 2014 IEEE day threshold 100.00 94.96 2014 49.40 �2015 IEEE day threshold 80.00 40.00- �2015 �2016IEEE day threshold 60.00 - - 4000 �2016 . 20.00 2017 YTD IEEE day threshold 0. 94 42W 2. 733 20,00 2017 YTD 0 -2016 Region Average 2012-2013-2014-2015-2016-2017 -2016 National Average 0.00 -2016 Region Average AveragesAIDI 2012-2013-2014-2015-2016-2017 -2016 National Average Average CAIDI 'Total Durationof Customerinterrzrptions• CAIDI(Minutes)=total Duration of Customer interruptions SAID] (Minutes) Total Customers•Inicrruptions Total Arzrmber of Customers Served Total Number of Note:The major event(ME)threshold allows a utility to remove outages that SAIFI 2012-2017 exceed the IEEE 2.5 beta threshold for events.These events could be severe weather,which can lead to unusually long outages in comparison to your 0.90 distribution system's typical outage. 0.80 0.80 ®2012 0.70 2013 0.60 0.50 0.54 2014 0.40 �2015 Total Number of Customer Interruptions 0.30 SAIF]= 0.15 �2016 Total Number of Customers Served 0.20 0.32 2017 YTD 0.10 0.00 -2016 Region Average 2012-2013-2014-2015-2016-2017 -2016 National Average AveragesAlFl Note: Regional and national averages have been updated for 2016. Causes of Outages - 2017 YTD November ,: 70 60 -SS 50 43 40 35 31_ M Annual Average 2012-2017 30 0 2017 Yearto Date 20 ---- --- 10 9 10 -7 5 2 0 0 0 Questions ? f RMLD PROCUREMENT REQUEST REQUIRING BOARD APPROVAL ATTACHMENT 6 i RMLD Reading Municipal Light Department RELIABLE POWER FOR GENERATIONS i 230 Ash Street,P.O.Box 150 Reading,MAO 1867-0250 I ? January 19,2018 Town of Reading Municipal Light Board Subject: IFP 2018-26 35kV Underground Cable t Pursuant to M.G.L c. 164§ 56D,on December 6,2017,a bid invitation was placed as a legal notice in the i Middlesex East section of the Daily Times Chronicle requesting sealed proposals for 35kV Underground Cable. i t An invitation for proposals was sent to the following twenty-two companies: i A.A.MacPherson Co.,Inc. Arthur J.Hurley Company,Inc. Boggs,Inc. Cable USA Champion Wire and Cable E.L.Flowers&Associates Eupen Cable USA First Line Associates General Cable HasGo Power Equipment Marmon Utility,LLC Orient Cable Pirelli Cable Corporation Power&Tel Power Sales Group,Inc. Shamrock Power Sales Stuart C.Irby Company The Okonite Company USA Power Cable WESCO Distribution Yale Electric East LLC Yusen Associates Sealed proposals were received from five companies: Stuart C. Irby Company; Yale Electric East LLC, Arthur J. Hurley Company,Inc.,WESCO Distribution and The Okonite Company. The sealed proposals were publicly opened and read aloud at 11:00 a.m.,January 3,2018,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 2018-26 for 35kV Underground Cable be awarded to: WESCO Distribution for $60,300.00,pursuant to M.G.L.Chapter 164§56D on the recommendation of the General Manager. The FY 18 Capital Budget amount for these items is$76,500. Brian Smith Hamid Jaffa t! Coleen O'Brien File:Bid/FY18/2018-26 35kV Underground Cable i 35kV Underground Cable Proposal 2018-26 Exceptions to Certified stated Exceptions Meet Qty in Total Net Check or Alf forms Authorized proposal are Specification, Specification Proposer Manufacturer Delivery Date Unit Cost feet Cost Bond rifled out signature requirements acceptable requirement Data Sheets WESCO Distribution Item 1 35kV Underground Cable Superior Essex 8-10 weeks $10.05 6,000 $60,300.00 yes yes yes yes yes yes yes Cable Yale Electric East LLC Item 1 35kV Underground Cable Kedte 10-12 weeks $12.69 6,000 $76,140.00 yes yes yes no We yes yes Arthur J.Hurley Company,Inc. Item 1 35kV Underground Cable The Okonite 16 weeks $12.87 6,000 $77,220.00 yes yes yes yes yes yes yes Company The Okonite Company Item 1 35kV Underground Cable The Okonite 12 weeks $13.29 6,000 $79,740.00 yes yes yes yes yes yes no Company Stuart C.Irby Company-Not Responsive Item 1 35kV Underground Cable Prysmian 8-10 weeks $9.58 10,000 $95,800.00 yes yes yes yes no no no Group Note:Proposal is for a quantity not requested. Copy of 2016-26 Analysis Page 1 BOARD MATERIAL AVAILABLE BUT NOT DISCUSSED TOWN OF READING MUNICIPAL LIGHT DEPARTMENT January-18 RATE COMPARISONS READING&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 READING MUNICIPAL LIGHT DEPT. 76126 Split 26.000 kW Demand 10.000 kW Demand 130.6 kW Demand 80120 Split TOTAL BILL $123.71 $216.28 $151.11 $1,085.47 $207.89 $5,070.45 $834,382.58 PER KWH CHARGE $0.16495 $0.14419 $0.15111 $0.14869 $0.19249 $0.14487 $0.12128 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 $0.23078 $0.23867 $0.18317 $0.17000 %DIFFERENCE 42.43% 88.37% 46.01% 55.20% 23.99% 26.44% 40.17% 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 44.88% 34.99% 56.73% 46.33% 25.05% 48.96% 65.84% 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 -35.57% -29.17% -31.04% -18.41% -32.08% -13.43% -31.04% 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 -20.19% -6.76% -12.15% -11.60% -18.98% -6.06% -3.26% WAKEFIELD MUNICIPAL LIGHT DEPT. TOTAL BILL $128.61 $239.67 $161.88 $1,221.04 $194.38 $5,735.58 $973,158.30 PER KWH CHARGE $0.17148 $0.15978 $0.16188 $0.16727 $0.17999 $0.16387 $0.14146 %DIFFERENCE 3.96% 10.82% 7.13% 12.49% -6.49% 13.12% 16.63% From: Trey Schultz To: RMLD Board Members Group Subject: AP Warrants and Payroll Date: Thursday,January 18,2018 7:53:00 AM Good morning, There were no Commissioner questions on the 12.1.17, 12.8.17, 12.15.17, 12.22.17, 1.5.18, and 1.12.18 AP. (There was no AP on 12.29.17 due to the holiday). There were no Commissioner questions on the 12.1 1.17, 12.26.17, and 1.8.18 Payroll. This e-mail will be included in the 1-25-18 Board Book. Tracy Schultz Executive Assistant Reading Municipal Light Department 230 Ash Street. Reading. MA. 01867 Tel: 781 .942.6489