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HomeMy WebLinkAbout2018-11-29 RMLD Board of Commissioners Minutes (730pm) Town of Reading c C E I4 E D 9 r Meeting Minutes TOWN CLERK 0.y� READING, kik Board - Committee- Commission - Council: 2619 JUN 13 PM 4: 2 RMLD Board of Commissioners Date: 2018-11-29 Time: 07:30 PM Building: Reading Municipal Light Building Location: Winfred Spurr Audio Visual Room Address: 230 Ash Street Session: Open Session Purpose: General Business Version: Final Attendees: Members - Present: David Hennessy, Chair; David Talbot,Vice Chair; John Stempeck, Commissioner; Tom O'Rourke, Commissioner; Philip B. Pacino, Commissioner Members- Not Present: Others Present: RMLD Staff: Coleen O'Brien, General Manager; Hamid Jaffari, Director of Engineering and Operations; Charles Underhill, Director of Integrated Resources; Wendy Markiewicz, Director of Business, Finance, and Technology; Tracy Schultz, Executive Assistant Citizens' Advisory Board: Neil Cohen, Member KP Law: Christopher Pollart, Attorney Melanson & Heath: Zackary Fentross Town of Reading: Vanessa Alvarado, Select Board Member and RMLD Uasion and Andrew Friedmann, Chair Minutes Respectfully Submitted By: Philip B. Pacino, Secretary Pro Tem Topics of Discussion: Call Meeting to Order Choir Hennessy called the meeting to order and read RMLD's Code of Conduct. Chair Hennessy announced that the meeting is being videotaped at the RMLD office at 230 Ash Street, for distribution to the community television stations in North Reading, Lynnfleld,and Wilmington. Public Commend Chair Hennessy welcomed Mr. Cohen, Ms. Alvarado and Mr. Friedmann, who had no comments.Mr. Pacino agreed to serve as secretary.There was no public comment. Presentation of Fiscal Year 2018 Audi Melomon Heath 8 P.C.-Zackery Ferdron Mr. Fentron explained that he was the Audit Manager in charge of the June 30, 2018 RMLD audit. Mr. Fentross explained that the financial statements are not being presented on a comparative basis this year per a recommendation from the AICPA due to the Implementation of Governmental Accounting Standards Board (GASB) Statement Number 75.The Deportment ft" ln Presentalbn of Fiscal Year 2018 Audit Melaraorr Heath B P.C.-Zackary Fentross received a clean opinion with no exceptions, which is the best opinion that can be received from an independent audit firm. Mr. Fentross directed the Commission's attention to the Statement of Net Position. Under Non-Current Assets, Capital Assets Net of Accumulated Depreciation has a balance of $76,988,531. This is a $2.1 million increase from prior year. The major capital project item that the Department worked on was the completion of the LED streetlight project, which increased that line item by $750,000. The Non-Current Liabilities Net Pension Liability is$10,781,819 and represents RMLD's portion of the total unfunded liability far the Reading Contributory Retirement System. The Department's portion of that liability is about 29 percent. The Reading Contributory Retirement System is approximately 79 percent funded. The average in the Commonwealth is between 65 and 70 percent. Net Other Post-Employment Benefit (OPER) Liability has a balance of$7,158,353. This is a big change due to GASB 75 which supersedes GASB 45.This was previously recognized over a 30-year period. This pulls liability that was in the back of financial statements to the front and the liability is now recognized in full. Every municipal in the United States has to implement this reporting method. RMLD has put aside almost$2.9 million to begin to fund the 28.5 percent portion of the Retirement System. The Department has positive operating results, a well-funded OPEB trust fund, and no management letter. There has been no management letter in previous years which shows that the management of the Department takes internal controls very seriously. Report of the Audit Committee-Mr. Pacino Mr. Pacino explained that the Audit Committee for the Town of Reading and the RMLD Audit Committee met before this meeting to review the RMLD audit in more depth. Mr. Pacino stated that Mr. Fentross did a back of the envelope calculation that showed that the Department has enough operating cash for 2.3 months. The industry standard is three months.There was a lot of discussion about the actuarial assumptions and the rate of return. The Audit Committee had three requests:why is the investment rate being used in the actuarial computation is 7.5 percent, whether there is any benchmark data available for the asset mix,and what is the percentage of fees.There was concern that the actuarial report states 7.5 percent and the Town is only coming two percent.Mr.Pacing added that there was no management letter and that Mr. Fentross was complimentary regarding the job done by Ms. O'Brien and Ms.Markiewicz and her staff. Mr.Pacino made a motion,seconded by Mr.O'Rourke,that the Board of Commissioners accept the Audit Report from Melanson Heath, Fiscal Year ended June 30,2018 as presented. Motion Carried:5:0:0. Ms. O'Brien clarified that she was assigned the three action items, which will involve contacting the Town. Mr. Fentross offered to assist Ms. O'Brien. Mr. Pacino clarified that the action items were to determine the fees on investments, the reasoning behind the 7.5 percent, and whether there's a benchmark available far the asset mix and what the return on Investment is for each major class. Mr. Talbot added there was the question of whether RMLD can lend money. Ms. O'Brien stated that she has already assigned that question to Attorney Pollart. Report of the Citizens'Advisory Board Meeting an Novembw 14,2018 Mr. Pacino reported that Mr. Underhill, the new Director of Integrated Resources, was introduced. Mr. Pacino explained that the Sub-Committee meeting was discussed,which segue ways into the next agenda item. Sub-Committee on the Payment to the Town of Reading and Town Meeting on November 15, 2018-Mr. Pacino and Mr.Stempeck Mr. Pacino explained that when the Sub-Committee met a Select Board member was concerned about what was presented in the study done by Ms.O'Brien and asked that the CAB consider bringing in a mediator. The meeting broke up after that. Mr. Pacino stated that when he attended the CAB meeting on November 14+h they discussed using a mediator. The CAB Chair was concerned about the mediator being an additional cost to the ratepayers.There was also confusion about what the mediator would be doing since only Mr. Pacino and Mr. P.,11 Sub-Commlit" an the Payment to the Town of Reading and Town Meeting an November 15, 2018-Mr.Pxlno and Mr.Aempeck Stempeck have given their opinions about what should be done; there has been no presentation or proposal from the Select Board and the discussion needs to be moved along. Mr. Stempeck stated that in the notes from 1990 it states that a vote of the Sub-Committee is needed to hire a mediator and that the mediator can be hired at a maximum of $5,000. That number is from 20 years ago and is not realistic now.Mr. Pacino explained that after the meeting there was a request that the Sub-Committee members consult with their respective groups and return with suggestions. Mr. Pacino said that he was hoping for more discussion at the Sub- Committee meeting. Mr. Pacino made a motion,seconded by Mr.Stempeck,that the RMLD Board of Commissioners propose a recommendation (stress on the word recommendation( to the Sub-Committee on the Payment to the Town of Reading that the RMLD make a constant below-the-ine payment to the Town of Reading for two years, 2019 and 2020, at the existing payment made for year 2018 which is approximately$2.48 million.The payment may be subject to any emergency issues such as severe weather damage or other catastrophic events faced by the RMLD.The payments are to be effective for periods after July 2, 2019 (does not affect any current payments). In addition, move to commission an independent consultant in 2019 to review the RMLD strategic study of May 2018 prepared by the RMLD General Manager and to propose a transition plan far the year 2021 that provides an algorithm far calculating the below-the-line payment to the Town of Reading that is based on kilowatt sales which is actual energy usage or some other applicable formula. Mr.Pacino reiterated that the idea of the motion is to stimulate discussion in the Sub-Committee. Mr. Stempeck stated that a fixed payment gives the Town a known amount for fiscal planning purposes for two years. The Town has continuously stressed that they want to know how much they're going to receive on a yearly basis. Mr. Stempeck stated that RMLD's revenue- is decreasing and that this proposal won't cripple RMLD's capital investment program and allows RMLD to remain within its charter to the four towns. This isn't just about Reading: there are four towns that RMLD serves.If gives the Town of Reading a head on economic development. Mr. O'Rourke stated that RMLD needs to be clear on the timing of the four payments, should collaborate with the Town on economic development, and should give the Town notice about the amount in advance once the two years is over. Ms. Markiewicz stated that the payment for next month is already committed. After that it must be decided whether to make three or five more payments to stay in sync with the calendar year. Mr. Pacino stated that's something that the Sub-Committee can decide. Mr. Talbot expressed concerns that the proposed motion wasn't Included on the agenda. Mr. Stempeck suggested calling it a resolution, Mr. Talbot stated that there should be a posting and opportunity for comment. Mr. Pacino answered that the motion is not changing anything and there is concern with any delay because the Select Board representative on the Sub-Committee is not running for reelection. Mr. Talbot asked Mr. Pacino to read the motion again. Mr. O'Rourke suggested making a chart of scheduled payments, which Ms. Markiewicz offered to prepare. Mr. Talbot expressed his concerns about taking a vote and reiterated that he thought the motion should have been on the agenda. Mr. O'Rourke stated that there can be public comment after the Sub-Committee meets. Mr. Cohen stated that there were only three members at the last CAB meeting. Mr. Cohen added that the last Sub-Committee meeting was brief, and It has been difficult to get the five members to meet.There is a CAB meeting on December 17. Ms. Alvarado asked for clarification on what happens at the two-year mark of the proposal. Chair Hennessy replied that the motion provides that a formula would be determined over the next few months. Ms. O'Brien clarified that it's not RMLD's revenues that are decreasing: it's sales.- Revenue could remain the some, but that would mean raising rates.The mission is to stay competitive. Mr. Pacino panted out that raising the rates makes economic development less attractive. Pape 13 Sub-CommlRee on the Payment to the Town of Reading and Town Meeting on November 15, 2018-Mr. Paclno and Mr.Stempeck Mr. Talbot stated that hearing from a member of the CAB and Select Board had lessened his concerns.Chair Hennessy invited Mr.Friedmann to comment.Mr.Friedmann stated that he would be speaking as a resident and that the some people who elect the Board of Commissioners elect the Select Board and that he knows that both groups wants to do right by the residents. Mr. Friedmann stated that it's unfortunate that there has been a delay but that he is looking forward to working together for what is best for the Town and the ratepayers. Mr. Pacino added an amendment to his motion that the RMLD Board of Commissioners "adopt a resolution"to propose.The Commissioners agreed to the change. Motion Corded:5:0:0. General Manager's Report-Ms.O'Brien a. Review of Board Policies This item was tabled for a subsequent meeting. Is. AP Process Review Ms. O'Brien explained that there would be a new AP farm for the Commissioners. There is a section to request clarification without the need to pull an invoice, and a section in which an invoice would be pulled should insufficient clarification be provided. If, in the unlikely event an invoice must be pulled,the warrant (without that invoice) still must be signed. In either case,staff works diligently to provide clarification to any question. Ms. O'Brien stated that some Commissioners have been asking about signing online. Ms. Markiewicz stated that only a copy of the invoices are sent to the Town; none of the back-up information is scanned.To sign online, Accounting would have to scan in everything which would be quite time-consuming.Mr. Talbot stated that it would be better to have an ;Pad rather than a piece of paper then the actual question that was asked could get relayed to all the Commissioners via direct email.Ms.O'Brien stated that RMLD would look into that. Ms. Markiewicz reiterated that the Town needs the warrant to be signed otherwise they will not cut a check. C. Introduction of Mr. Underhill Ms.O'Brien introduced the new Director of Integrated Resources. Charles Underhill. Integrated Resources DMslon-Mr. Underhill Mr. Underhill explained that about a year ago the Commissioners received a presentation on a NextEro program that was being Implemented to help reduce power supply costs. It was called a Transaction Facilitation Agreement (TFA) and its objective was to mitigate risk, stabilize rates, and to secure lower pricing. The program defined and executed price triggers. In 2018 roughly ten triggers resulted in purchases of blocks of energy and the net reduction in power supply cost was $1.9 million. RMLD has received a follow up proposal from NextEro to do physical load following.There are two types of risk in the wholesale market: forecasting effors that differ from actual results and market volatility. NextEra's proposal looks at eliminating load forecast. By load following they guarantee to meet the exact load and eliminates volatility with a fixed price. It maintains RMLD's renewable resource portfolio and allows RMLD to meet its strategic objectives, whether renewable or noncarbon. NextEro picks up the balance. Mr. Stempeck verified that NextEro reduces their dsk by buying large blocks of energy. Mr. Underhill affirmed,and explained that NextEro is serving as an aggregator to RMLD and other entities and taking the market out of play. Mr. Underhill stated that RMLD looked at its 2019 energy budget, which was projected to be $28.9 million. With all of NexlEra's fees the cost will be $27.7 million, for an expected net savings of $1.2 million. There is one risk: RMLD is part of NEMA and NextEro transacts at the Massachusetts hub: there may be slight differences in energy pricing during the first year.2019 is a pilot and a quarterly review has been negotiated. There will be tweaking to the program as needed and at the end of 2019 RMLD will examine both programs that NextEro has provided and evaluate whether one or the other (m both) can provide savings and how they will work going forward. Ms. O'Brien added that when she started at RMLD five years ago. RMLD was essentially purchasing power once a year.The NextEro pilot changed that,and it was a success and now Pape 14 Integrated Resources Dlvhbn-Mr. Underhill Mr. Underhill will lead RMLD into the second pilot. The TFA will be continued to lock in beyond 2019. The market keeps changing so programs need to be annually reviewed. Chair Hennessy asked how Mr. Underhill figures out how much RMLD saved with the TFA. Mr. Underhill answered that the contract provides for marks, which are points of comparison with the market. NextEra provides the data and it's a cumulative savings for the purchased power tranches since they have been in effect. Chair Hennessy verified that the Board would be asked to vote on the second NexlEro program during the next Board meeting. Mr. Underhill affirmed and stated that he would be doing a more formal presentation at that time. Mr. O'Rourke asked for a synopsis of Mr. Underhill's background. Mr. Underhill summarized his education and professional experience. Engineering and Operations Report-September 2015-Mr.Jaffad Mr. Jaffari stated that the total spending on routine capital construction for the month of September was $143,130, bringing the year-to-date total to $453,426. Total capital spending in the month of September was$302,913,bringing the year-to-data total to$1,213,238,leaving$6.4 million remaining in the approximately $7.6 million budget. Mr. Jaffari reviewed the progress being made on routine maintenance, including transformer replacements, pole and feeder inspections, and tree trimming. There were no hot spots found during Infrared scanning. Mr. Jaffari reviewed the ongoing subdivision upgrades including Turner Drive. Regarding the latter, Mr.Jaffari thanked the Select Board and Town Administrator in North Reading for allowing RMLD to set a pole that avoided having to dig on Route 62. Mr. Jaffari stated that Lynnfield has 16 pending pole transfers and one dispute. North Reading has eight pending pole transfers and nine pending pull poles. Reading has 16 pending pole transfers and nine pull poles.Wilmington has 27 pending pole transfers and four pull poles. RMLD is below the national and regional averages for outages but tree-caused outages have been increasing due to the high water table causing uprooting. RMLD Procurement Requests;Requiring Board Approval-Mr.JaIll RFP 2019.02:750 MCM 15kV Power Cable Mr.Jaffari explained that MCM stands for thousands of circular mils,which is the cable size.The cables for the underground getaways out of Stations 4 and Station 3 are being upgraded per the recommendation of Booth & Associates. $97A03 of the $124,488 belongs to capital improvement projects and the balance of$27,085 is what the Commission is voting on. Mr.Pacino made a motion,seconded by Mr.O'Rourke,that proposal 2019-02 for 750 MCM 15kV Power Cable be awarded to: Arthur J. Hurley Company, Inc. for$124,486.00, pursuant to M.G.L. Chapter 164 Section 56D on the recommendation of the General Manager. MoHon Carried:4:0:1, Mr.Pocino abstained due to a conflict of interest (client). IFB 2019-06: Electrical UIIIHy Excavation including Emergency Excavation and Construction Service! Mr.Jaffari explained that this is to hire a contractor for emergency excavation work for anything under$50,000.If the job is over$50,000 it will need to be formally bid. Mr. Pacino made a motion, seconded by Mr. O'Rourke, that bid 2019-06 fa Electrical Utility Excavation Including Emergency Excavation and Construction Services be awarded to: Tim Zanelll Excavating, I.I.C. for a not to exceed amount of $100,000 per Year (without written approval) pursuant to M.G.L c. 30 Section 39M, as the lowest responsible and eligible bidder on the recommendation of the General Manager. Motion Carried:&0:0. General Discussion Meeting dates were discussed. Paq 1 5 Adjoumment At 9:00 p.m., Mr. Pocino made a motion, seconded by Mr. O'Rourke, that the Board go into Executive Session to consider the purchase of real property and to discuss confidential, competltivel"ensitive and proprietary information in relation to making, selling, or distributing electric power and energy,and return to Regular Session for the sole purpose of adjournment. A true copy of the RMLD Board of Commissioners minutes ase�7,no, a majority of the Commission. PhhhiliipSecretary ProTem RMLD Board of Commissioners Page 1 5 READING MUNICIPAL LIGHT DEPARTMENT BOARD OF COMMISSIONERS REGULAR SESSION THURSDAY, NOVEMBER 29, 2018 AUDIT REPORT FROM MELANSON HEATH , FISCAL YEAR ENDED JUNE 30, 2018 ATTACHMENT 1 TOWN OF READING, MASSACHUSETTS READING MUNICIPAL LIGHT DEPARTMENT Annual Financial Statements For the Year Ended June 30, D D Reading Municipal Light Department TABLE OF CONTENTS PAGE INDEPENDENT AUDITORS' REPORT 1 MANAGEMENT'S DISCUSSION AND ANALYSIS 3 BASIC FINANCIAL STATEMENTS: Proprietary Fund: Statement of Net Position 7 Statement of Revenues, Expenses, and Ch es in Net Positiganges 8 Statement 9 Pesto u n Po tion 10 nFiduciary Net Position 11 nancial Statements 12 REQUIRED SUPPLEMENTARY INFORMATION Pension: Schedule of Proportionate Share of the Net Pension Liability (GASB 68) 40 Schedule of Pension Contributions (GASB 68) 41 OPEB: Schedule of Changes in Net OPEB Liability (GASB 74 and 75) 42 Schedules of Net OPEB Liability, Contributions, and Investment Returns (GASB 74 and 75) 43 INDEPENDENT AUDITORS' REPORT To the Municipal Light Board Town of Reading Municipal Light Department Report on the Financial Statements We have audited the accompanying financial statements of the business-type activi- ties and the aggregate remaining fund information of the Town of Reading Mu 'cipal Light Department ("the Department") (an enterprise fund of the To a ding, Massachusetts), as of and for the year ended June 30, 201 d e relate es to the financial statements, which collectively compris spa bas financial statements as listgthed ithTble of Co Management's for a na ial tate pa ntt is asp ible r he p eparation an air presenta- ion ese nants ' accord nce ih ounting principles generally ted int of m ca; t ' ' ludes the design, implementation, nd ain ena co levant to the preparation and fair presentation ffi n Is toree from material misstatement, whether due to fraud r e r. uditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assess- ments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by manage- ment, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the business-type activities and the aggre- gate remaining fund information of the Town of Reading Municipal Light Department as of June 30, 2018, and the respective changes in financial position and, where appli- cable, cash flows thereof for the year then ended in accordance with accounting princi- ples generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally acceptedf the Uni ed ofAme car quire that the Management's Discussion and , clysis and t e P and O EB chedules appearing on pages a pr en ed sup lemen basic fins tial state- ments. Such infoJ,,atioFno h no apofteb is fi ancial statem nts s required b ov malnti g St nit r Bo d, ho onsiders it to a an essential art o anti I o laci g the basic fi a cis tatements in an appropriate pe tion I, n jtheUnit hist0 'ca oo a applied certain limited procedures o th req ire SL )piea tary i ion in accordance with auditing standards gen- rall ac ept d i ales of America, which consisted of inquiries of man- ge nt a ut tods of preparing the information and comparing the informs- ion f nsistency with management's responses to our inquiries, the basic financial atements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with evidence sufficient to express an opinion or provide any assurance. , 2018 2 MANAGEMENT'S DISCUSSION AND ANALYSIS Within this section of the Town of Reading Municipal Light Department's ("the Depart- ment") annual financial report, management provides a narrative discussion and anal- ysis of the Department's financial activities for the year ended June 30, 2018. The Department's performance is discussed and analyzed within the context of the accom- panying financial statements and disclosures following this section. A. OVERVIEW OF THE FINANCIAL STATEMENTS The basic financial statements include (1) the Proprietary Fund Statement of Net Position, (2) the Proprietary Fund Statement of Revenues, Expenses and Changes in Net Position, (3)the Proprietary Fund Statement of Cash Flows, (4)the Fiduciary Funds Statement of Fiduciary Net Position, (5) the Fiduciary Funds Statement of Changes in Fiduciary Net Position, and (6) Notes to Financial State . Proprietary funds. Proprietary fund reporting as on t e to !nation of operating income, changes in net posi (or co t rec financ I po ition, and cash flows. The proprietary fund c ego inclu s e e fund . Enterprise fu s are sed t rep rt rwty for hic a fee is char ed external , a m st b u d en ne e f to ing riteria are m : (1) activity is fi d 'th ebt ecur d solely by a I f the net revenues from fees ad c arg s, (2) 1 or gu do re a activity's costs of providing ser- v ces re ere wi fees arges, and (3) the pricing policies of the activity e to rsh a an cha esigned to recover its costs, including capital costs s as epr ' ion or debt service. The primary focus on these criteria is on fees C d to external users. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the Department's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. Notes to financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information which is required to be disclosed by accounting principles generally accepted in the United States of America. 3 B. FINANCIAL HIGHLIGHTS The Proprietary Fund Statement of Net Position is designed to indicate our finan- cial position at a specific point in time.At June 30, 2018, it shows our net worth of $107,498,041 which comprises $78,275,207 invested in capital assets, $4,003,292 and $5,695,996 restricted for depreciation fund and the pension trust, and $19,523,546 unrestricted. The Proprietary Fund Statement of Revenues, Expenses and Changes in Net Position summarize our operating results and reveal how much, if any, of a profit was earned for the year. As discussed in more detail below, our net profit for the year ended June 30, 2018 was $4,853,207. The Proprietary Fund Statement of Cash Flows provide information about cash receipts, cash payments, investing, and financing activities during the accounting period. A review of our Proprietary Fund Statement of Cash Flows indicat that cash receipts from operating activities adequately covered our op exp nses in fiscal year 2018. The following is a summary of the D ent's ina ' data for t e cu rent fiscal year (in thousands). /� Dum arfi df Ne Po !to///��� 2018 D Cur ante $ 24,857 Non urr nt a 110,941 tal assets 135,798 Deferred outflows of resources 3,997 Current liabilities 9,556 Noncurrent liabilities 20,635 Total liabilities 30,191 Deferred inflows of resources 2,106 Net position: Net investment in capital assets 78,275 Restricted for depreciation fund 4,003 Restricted for pension trust 5,696 Unrestricted 19,524 Total net position 107,498 Total liabilities and net position $ 137,689 4 Summary of Change in Net Position 2018 Operating revenues $ 97,207 Operating expenses9( 1,132) Operating income 6,075 Non-operating revenues (expenses) (1,221) Change in net position 4,854 Beginning net position, as restated 102,645 Ending net position $ 107,499 Electric sales (net of discounts)were $96,747,035 in fiscal year 2018, an increase of 5.36% from the prior year. In fiscal year 2018, kilowatt hours sold decreased by 1.55% to 665,042,076, compared to 675,536,970 in fiscal year 2017. In f year 2018, customers received charges of$190,439 in purchase powTbean e just- ments, compared to charges of$724,692 in fiscal ye In fiscal year 2015, the Departure s ucture its rate nling cus- tomers purchase pow acity d trap missi n c s s athe base rate. In fiscal18, c stom rs re har ed p ase acity and tr ion 7r7re �trrthts o $26 ,2 e ting x es tot d $ 1,13 in i ear 2018, an overall increase o 4.6 % is �aintenance 2 1 . T Iarg portion of this total, $69,506,184, was r pu a e owe operating expenses included $15,822,723 for gen- e pe ing a costs, $1,497,473 for voluntary payments to Towns, and reciation expense of$4,305,989. In fiscal year 2018, the depreciation rate as 3.0%. In fiscal year 2018, the Department contributed $1,650,416 to the Reading Municipal Light Department Employees' Retirement Trust ("Pension Trust") and the Pension Trust contributed $1,650,416 to the Town of Reading Contributory Retirement System on behalf of the Department's employees. In fiscal year 2018, the Department contributed $607,125 to the Other Post- Employment Benefits Trust("OPEB Trust").Additional information on the Department's OPEB contributions can be found in Note 19 on pages 32 - 34 of this report. C. CAPITAL ASSET AND DEBT ADMINISTRATION Capital assets. Total investment in land at year end amounted to $1,286,675, an increase of$20,833 from the prior year. Total investment in depreciable capital assets at year-end amounted to$76,988,531 (net of accumulated depreciation), an increase of $2,143,437 from the prior year. This investment in depreciable capital assets 5 includes structures and improvements, equipment and furnishings, and infrastruc- ture assets. Debt and other Iona-term obligations. At the end of the current fiscal year, the Department had no outstanding bonded debt. Additional information on capital assets and other long-term obligations can be found in the Notes to Financial Statements. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the Town ofding Municipal Light Department's finances for all those with an interest in part ent's finances. Questions concerning any of the information d in this ort or requests for additional financial information should Iaddres Accountin /Busin ss M nag ownnoof Re ding u i ipal Ig Deralment 0 Str t DRe in , M c u 867 6 TOWN OF READING,MASSACHUSETTS MUNICIPAL LIGHT DEPARTMENT BUSINESS-TYPE PROPRIETARY FUND STATEMENT OF NET POSITION JUNE 30,2018 ASSETS Current Unrestricted cash and short-term investments $ 12,411,639 Receivables,net of allowance for uncollectable 10,285,725 Prepaid expenses 727,717 Inventory 1,432,065 Total current assets 24,857,146 Noncurrent: Restricted cash and short-term investments 29,904,641 Restricted investments 2,502,561 Investment in associated companies 258,596 Land 1,286,675 Capital assets,net of accumulated depreciation 76,988 Total noncurrent assets 10,841,004 DEFERRED OUTFLOWS OF RESOURCES Related to pensions 3,34 ,332 Related to OPER ,615 TOTAL AS DEF RED O TF INS OF RES URCE (//�\\ 139,79 ,097 JA rV) n Pay 5,331,888 e liabils 420,427 rdep sits 1,155,870 ra noes for construction 2,149,463 nt onion of long-term liabilitiesmpensated absences 498,719 Total current liabilities 9,556,367 Noncurrent: Net pension liability 10,781,819 Net OPEB liability 7,158,353 Compensated absences 2,694,957 Total noncurrent liabilities 20,635,129 DEFERRED INFLOWS OF RESOURCES Related to pensions 2,105,560 TOTAL LIABILITIES AND DEFERRED INFLOWS OF RESOURCES 32,297,056 NET POSITION Net investment in capital assets 78,275,207 Restricted for Depreciation fund 4,003,292 Pension trust 5,695,996 Unrestricted 19,523,546 TOTAL NET POSTION $ 107,498,041 The accompanying notes are an integral part of these financial statements. 7 TOWN OF READING, MASSACHUSETTS MUNICIPAL LIGHT DEPARTMENT BUSINESS-TYPE PROPRIETARY FUND STATEMENT OF REVENUES, EXPENSES,AND CHANGES IN NET POSITION FOR THE YEAR ENDED JUNE 30, 2018 Operating Revenues: Electric sales, net of discounts of$3,711,723 $ 96,747,035 Purchase power adjustments: Fuel charge adjustment 190,439 Capacity and transmission adjustment 269,269 Total Operating Revenues 97,206,743 Operating Expenses: Purchase power 69,506,184 Operating , 8,68 Maintenance 2, 94,64 Voluntary payments to towns 1, 97,47 Depreciation F4, 05,98 Total peratipgE Jaen Q 91, 32 O rat ng lndam€ 6',074,374 V no rat ng R v ues( p n Inte st i win 195,459 M C su I s 32,412 ntribu ns in aid of construction 372,680 Return on investment to Town of Reading (2,419,770) Loss on disposal of capital assets (63,845) Other 661,897 Total Nonoperating Revenues(Expenses), Net (1,221,167) Change in Net Position 4,853,207 Net Position at Beginning of Year,as restated 102,644,834 Net Position at End of Year $ 107,498,041 The accompanying notes are an integral pan of these financial statements. 8 TOWN OF READING, MASSACHUSETTS MUNICIPAL LIGHT DEPARTMENT BUSINESS-TYPE PROPRIETARY FUND STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2018 Cash Flows From Operating Activities: Receipts from customers and users $ 95,298,769 Payments to vendors and employees (89,089,325) Customer purchase power adjustments 459,708 Net Cash Provided By(Used For)Operating Activities 6,669,152 Cash Flows From Noncapital Financina Activities: Return on investment to Town of Reading (2,419,770) MMWEC surplus 32,412 Other 641,359 Net Cash Provided By(Used For)Noncapital Financing Activities (1,745 Cash Flows From Capital and Related Financina Activities: Acquisition and construction of capital assets 6,513, 66) Intergovernmental revenues 1,594 41 Net Cash Provided By(Used For)CapitZ ci Act 4,918 25) Cash Flows F do Ac 'tiesantin me59 a de ease n stm is 111,084 et sh Pr vi d By sed Fo Inve 306,543 NtCh g inUn str ed Ca nments 310,971 Ca and od an vest n s, Beginning of Year 42,005,309 Cash d Short-Term Investments,End of Year $ 42,316,280 Reconciliation o/Operetina Income(Loss)to Net Cash: Operating income $ 6,074,374 Adjustments to reconcile operating income to net cash provided by(used for)operating activities: Depreciation expense 4,305,989 Changes in assets, liabilities, and deferred outflows/inflows Accounts receivable (1,523,880) Prepaid and other assets (47,016) Inventory 216,610 Defamed outflows-related to pensions 786,746 Defamed outflows-related to OPEB (339,869) Accounts payable and accrued liabilities (1,963,683) Net pension liability (2,294,719) Net OPER liability (11,686) Defamed inflows-related to pensions 1,390,672 Other 75,614 Net Cash Provided By(Used For)Operating Activities $ 6,669,152 The accompanying notes are an integral part of these financial statements. 9 TOWN OF READING, MASSACHUSETTS MUNICIPAL LIGHT DEPARTMENT FIDUCIARY FUNDS STATEMENT OF FIDUCIARY NET POSITION JUNE 30,2018 Other Post Employment Benefits Trust Fund ASSETS Cash and short-term investments $ 3,519,792 TOTAL ASSETS 3,519,792 NET POSITION Total net position held in trust for pensions and other purposes 3,519,79 D D The accompanying notes are an integral part of these financial statements. 10 TOWN OF READING, MASSACHUSETTS MUNICIPAL LIGHT DEPARTMENT FIDUCIARY FUNDS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE YEAR ENDED JUNE 30, 2018 Other Post Employment Benefits Trust Fund Additions: Contributions: 1 Employers $ 607,125 Total Contributions 607,125 Investment Income(Loss): Increase(decrease)in fair value roves ents 55,5 7 Net inv mcom (loss) 55,5 7 otal a dkior� Q 2 ;Noe Vfitpayments to plan members, eficlIiaries laInd other systems atd�due88ns ncrease(decrease) 662,642 Net position restricted for pensions and other purposes: Beginning of Year 2,857,150 End of Year $ 3,519,792 ' Balances do not include the effect of current year GASB 74 information. Balances will change when the actuarial information becomes available. The accompanying notes are an integral part of these financial statements. 11 Town of Reading, Massachusetts Municipal Light Department Notes to Financial Statements 1. Summary of Significant Accounting Policies The significant accounting policies of the Town of Reading Municipal Light Depart- ment (the Department) (an enterprise fund of the Town of Reading, Massachu- setts) are as follows: A. Business Activity - The Department purchases electricity for distribution to more than 68,000 residents within the towns of Reading, North Reading, Wilmington, and Lynnfield Center. B. Regulation and Basis of Accounting - Under Massachusetts a aws, the Department's electric rates are set by the Muni ' 1 g t Boar ctric rates, excluding the purchase power fue ge an rch se power capacity and transmission char not a ed more an nce every three months. Rate schedul s are led wi h th achus partment of Public U " ' )Z ll��e D U ex rcises ral sup rvis ry author- ity ove thea epa a 's r tes are not ub' t to DPU a ro I. T e ep y is o rep re its fiit ancia statements in con or ity i h g eraepts ac nti principles. The pr prie fundl statements are reported using the economic re u s easy ent focus and the accrual basis of accounting. Under this tho , venues are recognized when earned and expenses are recorded when liabilities are incurred. Proprietary funds distinguish operating revenues and expenses from non- operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating rev- enues of the Department's proprietary fund are charges to customers for electric sales and services. Operating expenses for the Department's pro- prietary fund include the cost of sales and services, administrative expenses and depreciation on capital assets.All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. C. Concentrations-The Department operates within the electric utility industry. In 1998,the Commonwealth of Massachusetts enacted energy deregulation legislation that restructured the Commonwealth's electricity industry to foster competition and promote reduced electric rates. Energy deregulation created a separation between the supply and delivery portions of electricity service and enabled consumers to purchase their energy from a retail supplier of their choice. Municipal utilities are not currently subject to this legislation. 12 D. Retirement Trust - The Reading Municipal Light Department Employees' Retirement Trust(the"Pension Trust")was established by the Reading Munic- ipal Light Board on December 30, 1966, pursuant to Chapter 64 of the General Laws of the Commonwealth of Massachusetts. The Pension Trust constitutes the principal instrument of a plan established by the Municipal Light Board to fund the Department's annual required con- tribution to the Town of Reading Contributory Retirement System(the System), a cost-sharing, multi-employer public employee retirement system. In accordance with Government Accounting Standards Board Statement 68 (GASB 68), the Retirement Trust was consolidated into the Business-Type Proprietary Fund and is reflected in net position as"restricted for pension trust." E. Other Post-Employment Benefits Trust-The Other Post-Employment Benefits Liability Trust Fund (the "OPEB Trust") was established by the ding Municipal Light Board pursuant to Chapter 32B, Section e G neral Laws of the Commonwealth of Massachusetts. The OPEB Trust constitute cipal i stru ent f a pla es blished by the Municipal Light Board t fund t Dep rtm s a nual a ua ally deter- mined contrib tion rf ure etire s. F. Re en es �gerien s a e b d on ates es blished by the Department and filed with the U. even fro s f electricity are recorded on the a is of-Nis re d rom ly meter readings taken on a cycle bas nd ate s ted discounts. Recognition is given to the amount of sa s t cu omens which are unbilled at the end of the fiscal period. Cash and Short-term Investments - For the purposes of the Statements of Cash Flows, the Department considers unrestricted cash on deposit with the Town Treasurer to be cash or short-term investments. For purposes of the Statements of Net Position, both the proprietary funds and fiduciary funds consider unrestricted and restricted investments with original maturi- ties of three months or less to be short-term investments. H. Investments-State and local statutes place certain limitations on the nature of deposits and investments available. Deposits in any financial institution may not exceed certain levels within the financial institution. Non-fiduciary fund investments can be made in securities issued or unconditionally guar- anteed by the U.S. Government or agencies that have a maturity of one year or less from the date of purchase and repurchase agreements guaran- teed by such securities with maturity dates of no more than 90 days from date of purchase. Investments for the Department and the Pension Trust consist of domestic and foreign fixed income bonds which the Department intends to hold to maturity. These investments are reported at fair market value. 13 I. Inventory - Inventory consists of parts and accessories purchased for use in the utility business for construction, operation,and maintenance purposes and is stated at average cost. Meters and transformers are capitalized when purchased. J. Capital Assets and Depreciation-Capital assets,which include property, plant, equipment, and utility plant infrastructure, are recorded at historical cost or estimated historical cost when purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of the donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as they are acquired or constructed. Interest incurred during the construction phase of proprietary fund capital assets is included as part of the capitalized value of the constructed asset. When capital assets are retired,the cost of tired asset, less accumulated depreciation, salvage value an sh p ds, is charged to the Department's unrestrictJesti i i Massachusetts General La re utint in servic to b depreci- ated at a minimum annual r to of %. Toth' rate, e D partment must o pprov from he�¢PU Ch nu de reci tion rates [!union y b ma fin ncia fa�yoj re tinsh Flow for p xpansion, er han a ng f cto latin tates of useful lives. c e C ensa d bs ces - oyee vacation leave is vested annu- y u me on be forward to the succeeding year with supervisor ro I a d, if ropriate, within the terms of the applicable Department licy nion contract. Generally, sick leave may accumulate according to and Department contracts and policy and is paid upon normal termi- nation at the current rate of pay. The Department's policy is to recognize vacation costs at the time payments are made. The Department records accumulated, unused, vested sick pay as a liability. The amount recorded is the amount to be paid upon normal termination at the current rate of pay. L. Long-Term Obligations-The proprietary fund financial statements report long- term debt and other long-term obligations as liabilities in the Statements of Net Position. M. Use of Estimates-The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures for contingent assets and liabilities at the date of the financial statements, and the reported amounts of the revenues and expenses during the fiscal year. Actual results could vary from estimates that were used. N. Rate of Return - The Department's rates must be set such that earnings attributable to electric operations do not exceed eight percent of the net cost 14 of plant. The Department's audited financial statements are prepared in accordance with auditing standards generally accepted in the United States of America. To determine the net income subject to the rate of return limitations, the Department performs the following calculation. Using the net income per the audited financial statements, the return on investment to the Town of Reading is added back, the fuel charge adjustment is added or deducted, and miscellaneous debits/credits (i.e., gain/loss on disposal of fixed assets, etc.) are added or deducted, leaving an adjusted net income figure for rate of return purposes. Investment interest income and bond principal payments are then deducted from this figure to determine the net income subject to the rate of return. The net income subject to the rate of return is then subtracted from the allowable eight percent rate of return, which is calculated by adding the book value of net plant and the investment in associated companies multiplied by eight percent. From this calculation, the Municipal Light Board will determine what cash transfers need to be made at the end of the fiscal year. 2. Cash and Investments Total cash and investments as of a 30, 018 classifiF,639 com- panying financial statements a folios. Pro neta nd: nre riot ca an sho�1 rm in es ent $ 1 D estn ed and hort-term inve m nt 29,904,641 estri inve m is 2,502,561 id ciary Fun nd short-term investments OPEB Trust 3,519,792 Total cash and investments $ 48,338,633 Total cash and investments at June 30, 2018 consist of the following: Deposits with financial institutions $ 48,338,633 Total cash and investments $ 48,338,633 Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that the fair value of an investment will be adversely affected by changes in market interest rates. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The Department manages its exposure to interest rate risk by purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. 15 As of June 30, 2018, the Department (including the Pension Trust and OPEB Trust) held cash and short-term investments in pooled investments with the Massachusetts Municipal Depository Trust (MMDT), FDIC-insured savings accounts, and 90-day FDIC-insured bank certificates of deposit. Because of their immediate liquidity and/or short-term maturity, these funds are classified as cash and short-term investments in the accompanying financial statements and are not considered to be exposed to significant interest rate risk. As of June 30, 2018, the Department and Pension Trust held investments in domestic and foreign fixed income bonds with varying maturity dates as follows: Proprietary Fund Restricted Maturity Investments Date Corporate bonds AT&T Inc $ 418,601 f General Electric Cap Corp , 06 Wells Fargo& Co 402 Simon Pro erty 372, ;TZ7ibas k deria d B k 495 409 425 $ 502 561 Di cl u g rt Risk Ge rally, is the risk that the issuer of an investment will not fulfill its igation to the holder of the investment. This is measured by the assigning of a rating by a nationally recognized statistical rating organization.As of June 30, 2018,the Department and Pension Trust held investments in domestic and foreign fixed income bonds with varying ratings as follows: Proprietary Fund Restricted Moody's Investment Type Investments Rating Corporate bonds: AT&T Inc $ 418,601 BAA2 General Electric Cap Corp 404,606 A2 Wells Fargo & Co 402,020 A3 Simon Property 372,899 A3 Rabobank Nederland Bank 495,010 BAA1 BNP Paribas 409,425 AA3 Total $ 2,502,561 16 Concentration of Credit Risk The Department follows the Town of Reading's investment policy, which does not limit the amount that can be invested in any one issuer beyond that stipu- lated by Massachusetts General Laws. At June 30, 2018, the Department and Pension Trust investments were held in domestic and foreign fixed income bonds, as detailed in the sections above. Five of the bonds each individually represent approximately 16% of the Department's and System's total investments, while the investment in Rabobank Nederland Bank represents approximately 20%. Custodial Credit Risk Custodial Credit Risk for deposits is the risk that, in the event of the failure of a depository financial institution, the Department will not be able to recover its deposits or will not be able to recover collateral securities that are in the pos- session of an outside party.The custodial credit risk for investments is the ' that, in the event of the failure of the counterparty (e.g., broker-deale ns ion, the Department will not be able to recover the value stments ateral securities that are in the possession of anot r pa use General Laws, Chapter 44, Section 55, hosits" n a nk or trust c pa y or bank- ing company to an amount not x�edi SiA per n o the ca ital d surplus of such bast co any r b kin com any ss satisf o security is 3ancof ft y s nk r tru t an or an g company f r excess." a me a ass sett st tute s written, as well as the Toon [Bu n 's deposit icy f r cus ' I it t e D pa en its cash and short-term investments with the Town ding, a ban accounts are maintained in the name of the Town, the a Department's balance exposed to custodial credit risk at June 30, nnot be reasonable determined. As of June 30, 2018, none of the Department or Pension Trust investments were exposed to custodial credit risk because the related securities are registered in the Department's name. Fair Value The Department categorizes its fair value measurements within the fair value hierarchy established by Governmental Accounting Standards Board Statement No. 72 Fair Value Measurement and Application (GASB 72). The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unob- servable inputs. 17 Fair Value Measurements Using: Quoted prices in active Significant Significant markets for observable unobservable identical assets inputs inputs Description (Level 1) (Level 21 (Level 3) Investments by fair value level: Debt securities Corporate bonds $ 2,502,561 $ 2,502,561 $ - $ - Total $ 2,502,561 3. Restricted Cash and Investments The Department's proprietary fund restricted cash and investment balances represent the following reserves: Cash I n Depreciation fund $ 4101 $ Deferred fuel reserve 6,03 ,006 - Deferred energy on res a /� 57 ,759 - Rate stabil' ation 6,98 ,273 - ese a fo unco ecti e u 20 ,000 - DPSidr lea ben 1 1251281 H ardous le fu d 750,000Cus merd 1,155,870Pensi rust 4,444,715 1,251,280 Total $ 29,904,641 $ 2,502,561 The Department maintains the following reserves: - Depreciation fund - The Department is normally required to reserve 3.0% of capital assets each year to fund capital improvements. - Deferred fuel reserve-The Department transfers the difference between the customers' monthly fuel charge adjustment and actual fuel costs into this account to be used in the event of a sudden increase in fuel costs. - Deferred energy conservation reserve -This account is used to reserve monies collected from a special energy charge added to customer bills. Customers who undertake measures to conserve and improve energy efficiency can apply for rebates that are paid from this account. - Rate stabilization-This represents amounts set aside to help stabilize cost increases resulting from fluctuations in purchase power costs. - Reserve for uncollectible accounts -This account was set up to offset a portion of the Department's bad debt reserve. 18 - Sick leave benefits -This account is used to offset the Department's actu- arially determined compensated absence liability. - Hazardous waste fund -This reserve was set up by the Board of Com- missioners to cover the Department's insurance deductible in the event of a major hazardous materials incident. - Customer deposits - Customer deposits that are held in escrow. - Pension trust-The principal instrument of a plan established by the Munic- ipal Light Board to fund the Department's annual required contribution to the Town of Reading Contributory Retirement System (the System), a cost-sharing, multi-employer public employee retirement system.Accounts Receivable 4. Accounts Receivable Accounts receivable consists of the following at June 30, 2018: Customer Accounts: Billed $ 31 Lewances: able ccou (200 dis�oun 23 ,940 bil 3,864,588 D ),J1 t5,710,527 al raccounts 9,595,115 Oter Accounts: Liens and other 690,610 Total other accounts 690,610 Total net receivables $ 10,265,725 5. Prepaid Expenses Prepaid expenses consist of the following: Insurance and other $ 284,072 Purchase power (120,787) NYPA prepayment fund 307,573 WC Fuel -Watson 256,859 Total $ 727,717 19 6. Inventory Inventory comprises supplies and materials at June 30, 2018, and is valued using the average cost method. 7. Investment in Associated Companies Under agreements with the New England Hydro-Transmission Electric Company, Inc. (NEH) and the New England Hydro-Transmission Corporation (NHH), the Department has made the following advances to fund its equity requirements for the Hydro-Quebec Phase II interconnection. The Department is carrying its investment at fair value, reduced by shares repurchased. The Department's equity position in the Project is less than one-half of one percent. Investment in associated companies consists of the following, at June 30, 2018: New England Hydro-Transmission (NEH & NHH 258,59 8. Capital Assets n The followg is aassumm ry o fiscal ye 20 8 a Ivity in capit ass is (in o nd fit ye gi nin Ending I nce Increases Decreases Balance B in -T psA tiv Iss: . p' ass , ing ure provements $ 19,414 $ 856 $ - $ 20,270 uipment and furnishings 33,592 1,364 (222) 34,734 Infrastructure 90,527 4,273 (1,006) 93,794 Total capital assets, being depreciated 143,533 6,493 (1,228) 148,798 Less accumulated depreciation for: Structures and improvements (9,414) (540) - (9,954) Equipment and furnishings (21,520) (1,009) 222 (22,307) Infrastructure3( 7,754) (2.757) 9623( 9,549) Total accumulated depreciation6( 8,688) (4,306) 1,1847( 1,810) Total capital assets, being depreciated, net 74,845 2,187 (44) 76,988 Capital assets, not being depreciated: Land 1,266 21 1,287 Total capital assets, not being depreciated 1,266 21 1,287 Capital assets, net $ 76,111 $ 2,208 $ (44) $ 78,275 20 9. Deferred Outflows of Resources Deferred outflows of resources represent the consumption of net position by the Department that is applicable to future reporting periods. Deferred outflows of resources have a positive effect on net position, similar to assets. Deferred outflows of resources related to pensions and OPEB, in accordance with GASB Statements No. 68 and 75, are more fully discussed in the corresponding pension and OPEB notes. 10. Accounts Payable Accounts payable represent fiscal 2018 expenses that were paid after June 30, 2018. 11. Accrued Liabilities Accrued liabilities consist of the following at Ju Accrued payr $ 76 d sal to 24 52 PDe"o her 6 699 T al $ 420 4272. C sto ts T ' alance represents deposits received from customers that are held in escrow. 13. Customer Advances for Construction This balance represents deposits received from vendors in advance for work to be performed by the Department.The Department recognizes these deposits as revenue after the work has been completed. 14. Accrued Employee Compensated Absences Department employees are granted sick leave in varying amounts. Upon retire- ment, normal termination, or death, employees are compensated for unused sick leave (subject to certain limitations) at their then current rates of pay. 21 75. Lona-Term Debt Chances in General Lona-Term Obligations During the year ended June 30, 2018, the following changes occurred in long- term obligations (in thousands): Equals Total Total Less Long-Term Balance Balance Current Portion 7/1/17 Additions Reductions 6/30/18 Portion 6/30/18 Business-Type Activities Net pension liability $ 13,076 $ - $ (2,294) $ 10,782 $ - $ 10,782 Net OPEB liability 138 7,020 - 7,158 - 7,158 Other: Compensated absences 3,150 44 3,194 (499) 2,695 Subtotal-other 3,150 44 31194 2,695 Totals $ 16,364 $ 7,=64 $ 2,294 34 $ 4 20,635 16. Deferred Inflows esou es ed i fl u ces ret aacq 's ti n of at position by epartment that a a licaWeA6 fu re r po peri s. efe red inflows of resources have egat ve effect on n os' on, si ' to li . ' . Deferred inflows of resources rel ted o an o will eco nized expense in future years and is more ful de c bed n t co nding pension note. 7 eadina Contributory Retirement System The Department follows the provisions of GASB Statement No. 68, Accounting and Financial Reporting for Pensions — An Amendment of GASB Statement No. 27, with respect to the employees' retirement funds. A. Plan Description Substantially all employees of the Department are members of the Town of Reading Contributory Retirement System(the System), a cost-sharing, multiple- employer public employee retirement system (PERS). Eligible employees must participate in the System. The pension plan provides pension benefits, deferred allowances, and death and disability benefits. Chapter 32 of the Massachusetts General Laws establishes the authority of the System, as well as contribution percentages and benefits paid. The System Retirement Board does not have the authority to amend benefit provisions. Additional information is disclosed in the System's annual financial reports, which are publicly available from the System's administrative offices located at Reading Town Hall, 16 Lowell Street, Reading, Massachusetts, 01867. 22 Participant Retirement Benefits The System provides for retirement allowance benefits up to a maximum of 80% of a member's highest 3-year average annual rate of regular com- pensation for those hired prior to April 2, 2012 and the highest five-year average annual rate of regular compensation for those first becoming mem- bers of the Massachusetts System on or after that date. However, per Chapter 176 of the Acts of 2011, for members who retire on or afterApril 2, 2012, if in the 5 years of creditable service immediately preceding retire- ment, the difference in the annual rate of regular compensation between any 2 consecutive years exceeds 100 percent, the normal yearly amount of the retirement allowance shall be based on the average annual rate of regular compensation received by the member during the period of 5 con- secutive years preceding retirement. Benefit payments are based upon a member's age, length of creditable service, level of compensation and group classification. If a participant was a member prior to Februa af llow- ance may be received at any age, upon ainin y . The plan also provides for retire t age if t e pa icipamber prior to January 1 1978, wi no 'nimu ve g r quirepar- ticipant memb ono aJa ary , 19 a mups 1 2, t en a me t all wa c ma b re ived if the ) has at a t 10s cre ita servi (2) i age 55, (3) voluntarily left De rtent emp me on fter e, and (4) left accumulated arm i ded ' ns in h fu . Me rs of Group 4 have no minimum vesting req ire en , h ev t be at least age 55. Groups 2 and 4 require that p ici ant perform the duties of the Group position for at least 12 months med ately prior to retirement. A participant who became a member on or after April 2, 2012 is eligible for a retirement allowance upon 10 years creditable service and reaching ages 60 or 55 for Groups 1 and 2, respectively. Participants in Group 4 must be at least age 55. Groups 2 and 4 require that participants perform the duties of the Group position for at least 12 months immediately prior to retirement. A retirement allowance consists of two parts: an annuity and a pension. A member's accumulated total deductions and a portion of the interest they generate constitute the annuity. The difference between the total retirement allowance and the annuity is the pension. The average retirement benefit is approximately 80-85% pension and 15-20% annuity. Participant Refunds Employees who resign from service and who are not eligible to receive a retirement allowance are entitled to request a refund of their accumulated total deductions. Members voluntarily withdrawing with at least 10 years of service or involuntarily withdrawing, receive 100% of the regular interest 23 that has accrued on those accumulated total deductions. Members voluntarily withdrawing with less than 10 years of service get credited interest each year at a rate of 3%. Participants Contributions Participants contribute a set percentage of their gross regular compensation annually. Employee contribution percentages are specified in Chapter 32 of the Massachusetts General Laws. The employee's individual contribution percentage is determined by their date of entry into the system. In addition, all employees hired after January 1, 1979 contribute an additional 2% on all gross regular compensation over the rate of$30,000 per year. The percent- ages are as follows: Before January 1, 1975 5% January 1, 1975 - December 31, 1983 7% January 1, 1984-June 30, 1996 Beginning July 1, 1996 9% For those members enterin a M ssach se m on r a er April 2, 2012 in Gro contr Win r to wi I be redu d to 60 wh n at least 30 yea o cr�editabl se ce7 b an ain . Em to er Cbrifrib ons v )Emlob ers a ui c tribute at actuarially determined rates as accepted a ubli E etirementAdministration Commission (PER4C). Department's contribution to the System for the year ended June 30,2018 was $1,650,416 which was equal to its annual required contribution. B. Summary of Significant Accounting Policies For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pen- sion expense, information about the fiduciary net position of the System and additions to/deductions from System's fiduciary net position have been deter- mined on the same basis as they are reported by System. For this purpose, benefit payments(including refunds of employee contributions)are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. C. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2018, the Department reported a liability of $10,781,819 for its proportionate share of the System's net pension liability. The net pension 24 liability was measured as of December 31, 2017, and the total pension lia- bility used to calculate the net pension liability was determined by an actuarial valuation as of January 1, 2017 rolled forward to December 31, 2017. The Department's proportion of the net pension liability was based on an actuari- ally determined projection of the Department's long-term share of contribu- tions to the pension plan relative to the projected contributions of all par- ticipating employers. At December 31, 2017, the Department's proportion was 29.15%. For the year ended June 30, 2018, the Department recognized pension expense of$1,533,131. In addition, the Department reported deferred out- flows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources R rces Net differences between expected and actual experience , 91 $ 18,485 Changes of assumptions 21,957 - Net difference be n pr o inves earnings - 1,587,075 ng sin rop ion blw n e oy onp p rtion share f 161,284 - of 11 $ 3,348,332 $ 2,105,560 mounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year ended June 30: 2019 $ 690,475 2020 678,142 2021 9,861 2022 (337,787) 2023 202,081 Total $ 1,242,772 D. Actuarial Assumptions The total pension liability was determined by an actuarial valuation as of January 1, 2017, rolled forward to the measurement date of December 31, 25 2017 using the following actuarial assumptions, applied to all periods included in the measurement: Valuation Date January 1, 2017 Actuarial Cost Method Entry Age Normal Cost Method Actuarial Assumptions: Investment rate of return 7.65%, net of pension plan investment expense, including inflation Projected salary increases 4.25%-6.00%for Group 1 and 4.75%-7.00% for Group 4 Inflation rate 3.00%Annually Post-retirement cost-of-living 3.00% of first$12,000 adjustment Mortality rates were based on the RP-2014 Mortality T g era- tionalmortality improvement using Scale MP-201 a mor- tality rates were based on the RP-2014 ' a led The long-term a acted r e of r urn n sion ents was deter ' sing a ildin -bl k tho in ranges of pect f real ate of e m xp ct returnsion plan in st entn and ' fla are a lop d for eset class. DThe ranges are mbi ed t uce h -term expected rate of return by ei htin a ex a ed uture al rates of return by the target asset allo at n p rc to y adding expected inflation. Best estimates of ar m tic al rates of return for each major asset class included in the ension plan's target asset allocation as of December 31, 2017 are summa- rized in the following table: Long-term Target Expected Asset Rates Asset Class Allocation of Return Global Equity 40.00% 4.91% Hedge Funds & Portfolio Completetion 13.00% 3.40% Fixed Income 12.00% 0.71% Private Equity 11.00% 6.50% Value-Added Fixed Income 10.00% 3.64% Real Estate 10.00% 3.70% Timber/Natural Resources 4.00% 3.25% Total 100.00% 26 E. Discount Rate The discount rate used to measure the total pension liability was 7.65%. The projection of cash flows used to determine the discount rate assumed that the plan member contributions will be made at the current contribution rate and that employer contributions will be made at contractually required rates, actuarially determined. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments to current active and inactive plan members. There- fore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. F. Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following table presents the Department's proportionate s e net pension liability (asset) calculated using the current 's nt rate o 5%, as well as what the Department's propo ' e sh e net pension liability (asset) would be if it w calcul ted a discount to that is 1 percentage-point lower (6. 5%) 1 pe n nt higher (8.65%) than the cur[Wreas urre t Di co nt 1 R t Increase °°) (6.65°h) $ 10,781,819 $ 5,811,342 ension Plan Fiduciary Net Position Detailed information about the pension plan's fiduciary net position is avail- able in the separately issued System financial report. H. Town of Reading Municipal Light Department Employees Retirement Trust (`Pension Trust") The Department has established an irrevocable trust for the purpose of cur- rently funding its annual required contribution to the Town of Reading Con- tributory Retirement System (RCRS). Annual contributions to the trust are actuarially determined to be the net normal cost for funding the Department's liability for pension benefits for covered employees, and both the principal and income of the trust is restricted for the exclusive benefit of Department employees and their beneficiaries.This Pension Trust is included in the propri- etary fund statements in the Department's basic financial statements. As noted in the first paragraph of this section, the Department's proportion- ate share of the RCRS net pension liability was determined by an actuarial 27 valuation as of January 1, 2017 rolled forward to December 31, 2017. How- ever, the actuarial valuation does not take into account the fiduciary net position of the Department's Pension Trust at December 31, 2017 (the meas- urement date).As of December 31, 2017, the value of the pension trust was $5,695,996. 18. Other Post-Employment Benefits (GASB 75) GASB Statement No. 75, Accounting and Financial Reporting for Postemploy- ment Benefits Other Than Pensions, replaces the requirements of Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. The Statement establishes standards for recog- nizing and measuring liabilities, deferred outflows of resources, deferred inflows of resources, and expense/expenditures. This Statement identifies the methods and assumptions that are required to be used to project benefit payments, dis- counted projected benefit payments to their actuarial present v d ttrib- ute that present value to periods of employee service. All the following OPEB disclosures ased n a urement ate f June 30, 2017. A. Gene nfo tion bou th PE Pla ::DPla D scri n The D part a tpro es ost employment healthcare benefits for retired em to ees hro epartment's plan. The Department provides health i ura verage through Blue Cross Blue Shield. The benefits, benefit evels, employee contributions, and employer contributions are governed by Chapter 32 of the Massachusetts General Laws. Benefits Provided The Department provides medical and prescription drug insurance to retirees and their covered dependents.All active employees who retire from the Department and meet the eligibility criteria will receive these benefits. Plan Membership At June 30, 2017, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefit payments 91 Active employees 87 Total 178 28 B. Actuarial Assumptions and Other Inputs The net OPEB liability was determined by an actuarial valuation as of June 30, 2017, using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Inflation 2.50% Salary increases 6.0% decreasing to 4.25% based on service for Group 1 and Group 2 7.0% decreasing to 4.75% based on service for Group 4 Investment rate of return 7.50% Discount rate 7.50% Healthcare cost trend rates Medical/Prescription Drug: 7.0% decreasing by 0.5%for 5 years to an ultimate level of 4.5% per year. Contributions: Retiree contributions are expected to increase with medical trend. Mortality rates were based on: • Pre-Retirement: RP- ealthy foyeeable p oje ed gener- tionally w' Scale P-201 ealth RP-2 14 ea An uitaable p je ed gener- tion Ily ith cal M - 14 isabled: -20 4 Dis d R ijected generationally ith le M -2 14 DT ac tua ' I assumptions used in the valuation were based on the results an actuarial experience study as of June 30, 2017. The long-term expected rate of return on OPEB plan investments was deter- mined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of investment expense and inflation) are developed for each major asset class. These ranges are com- bined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the target asset allocation as of June 30, 2017 are summarized in the following table. 29 Target Lang-term Asset Expected Real Asset Class Allocation Rate of Return Domestic equity 18.00% 6.44% International developed markets equity 16.00% 7.40% International emerging markets equity 6.00% 9.42% Core fixed income 12.00% 2.02% High yield fixed income 10.00% 4.43% Real estate 10.00% 5.00% Commodities 4.00% 4.43% Hedge fund, GTAA, risk parity 13.00% 3.75% Private equity 11.00% 10.47% Total 100.00% C. Discount Rate The discount rate used to measure the net OPEB liability was 7.50° pro- jection of cash flows used to determine the discount rate med that ntri- butions from plan members will be made Ffi nfi ution rate. Based on those assumptio OPpiry nit po ition was projected to be ilable t make II prbene It payments of curren membe Q D. N O EB i it DThe c po is of net PE I ity, measured as of June 30, 2017, war a foil w Total OPEB liability $ 10,015,425 Plan fiduciary net position 2,857,072 Net OPEB liability $ 7,158,353 E. Changes in the Net OPEB Liability Increase(Decrease) Plan Total OPEB Fiduciary Net OPEB Liability Net Position Liability Ll & (a)-(b) Balances at 6/30/16 $ 9,556,217 $ 2,525,842 $ 7,030,375 Changes for the year: Service cost 245,842 - 245,842 Interest 698,939 - 698,939 Contributions-employer - 794,319 (794,319) Net investment income - 22,484 (22,484) Benefit payments (485,573) (485,573) Net Changes 459,208 331,230 127,978 Balances at 6/30/17 $ 10,015,425 $ 2,857,072 $ 7158,353 30 F. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability, as well as what the net OPEB liability would be if it were calculated using a discount rate that is one percentage-point lower or one percentage-point higher than the current dis- count rate: Current 1% Discount 1% Decrease Rate Increase $ 8,129,189 $ 7,158,353 $ 6,350,695 G. Sensitivity of the Net OPER Liability to Changes in the Healthcare Cost Trend Rates The following presents the net OPEB liability, as well as what the net OPEB liability would be if it were calculated using healthcare cost a e that are one percentage-point lower or one percenta n higher the current healthcare cost trend rates: e 3, ,o,f4Cos d 1%Increase $ 8,113,465 D O 8erred Outflows of Resources and Deferred Inflows Res rtes Related to OPEB For the year ended June 30, 2018, the Department recognized an OPEB expense of$896,790.At June 30, 2018, the Department reported deferred outflows of resources related to OPEB from the following sources: Deferred Outflows of Resources Contributions subsequent to the measurement date $ 607,125 Net difference between projected and actual OPEB investment earnings 41,490 Total $ 648,615 The $648,615 reported as deferred outflows of resources related to OPEB resulting from contributions subsequent to the measurement date and before 31 the end of the fiscal year will be included as a reduction of the net OPEB liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ended June 30: 2019 $ 10,373 2020 10,373 2021 10,373 2022 10,371 Total $ 41,490 19. Other Post-Emolovment Benefits (GASB 741 GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans (OPEB), replaces the requirements of Statement No. 43, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. This applies if a trust fund has been established to fund future OPEB costs. In fiscal year 2010, the Department established an OPEB Trust Fund to provide ding for f ture employee�he health care costs. � All the following OPEB disclosures are based on a measurement date of June 30, 2018.1 / J A. Investments The OPEB trust fund assets consist of equities, fixed income, real estate, and alternatives. (specify) Rate of return. For the year ended June 30, 2018, the annual money- weighted rate of return on investments, net of investment expense, was percent (or was not available). The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. B. Actuarial Assumptions and Other Inputs The total OPEB liability was determined by an actuarial valuation as of 20XX, using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: 32 Inflation _% Salary increases _%, average, including inflation Investment rate of return _%, net of OPEB plan investment expense Municipal bond rale Discount rate Healthcare cost trend rates _%for 2018, fluctuating_%, to an ultimate rate of_%as of_and later years Retirees'share of benefit-related costs % Mortality rates were based on The actuarial assumptions used in the valuation were based on the results of an actuarial experience study as of , 20XX. The long-term expected rate of return on OPEB plan investments was deter- mined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of investment expense and inflation) are developed for each major asset class. These ranges are com- bined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the target asseallocation as of June 30, 2018 are summarized in the following table. < \ IJ DTarget Long-term Asset Expected Real Asset Class Allocation Rate of Return Equities 0.00% 0.00% Fixed income 0.00% 0.00% Real estate 0.00% 0.00% Alternatives 0.00% 0.00% Total 0.00% C. Discount Rate The discount rate used to measure the total OPEB liability was _%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate. Based on those assumptions, the OPEB plan fiduciary net position was not projected to be available to make all projected future benefit payments of current plan members.As a result, a blended discount rate was used based on a combination of the investment rate of return of_% and municipal 33 bond rate of_% (based on index provided by on 20- year municipal bond rate as of June 30, 2018). D. Net OPEB Liability The components of the net OPEB liability, measured as of June 30, 2018, were as follows: Total OPEB liability $ Plan fiduciary net position Net OPEB liability $ Plan fiduciary net position as a percentage of the total OPEB liability #DIV/0! E. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability, as well as what the net OPEB liability would be if it were calculated using a discount rate that is one percentage-point lower or one percentage-point higher than the current dis- count rate:/_�\ / A \ I ---' Current J 1% Discount 1% DDecrease Rate Increase F. Sensitivity of the Net OPEB Liability to Changes in the HeaRhcare Cost Trend Rates The following presents the net OPEB liability, as well as what the net OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage-point lower or one percentage-point higher than the current healthcare cost trend rates: Current Healthcare 1% Cost Trend 1% Decrease Rates Increase 34 20. Participation in Massachusetts Municipal Wholesale Electric Company The Town of Reading, acting through its Light Department, is a Participant in certain Projects of the Massachusetts Municipal Wholesale Electric Company (MMWEC). MMWEC is a public corporation and a political subdivision of the Common- wealth of Massachusetts, created as a means to develop a bulk power supply for its Members and other utilities. MMWEC is authorized to construct, own, or purchase ownership interests in, and to issue revenue bonds to finance, electric facilities (Projects). MMWEC has acquired ownership interests in electric facili- ties operated by other entities and also owns and operates its own electric facilities. MMWEC sells all of the capability (Project Capability) of each of its Projects to its Members and other utilities (Project Participants) under Power Sales Agreements (PSAs).Among other things, the PSAs require eac oject Participant to pay its pro rata share of MMWEC's costs rela a Pr jact, which costs include debt service on the revenue b ued by C to finance the Project, plus 10% of MMWEC's de service i into a Reserve and Contingency Fund. In additi uld a roje Pa 'cipant it to make any payment when due her Proj ct Pa 'cipan of at P oject ay b 3 required to increas( up)the pay n and rre spo their Pa 'cip nts share t Pr 'ect' act ap ili an dd tion I amount not eed 25% of the or ginal a ici nt's sh of the P oje 's Project Capability. Project rtici n s have co an d to vis ollect rates at least sufficient to ee th it o i tion u der he P W C ias ' sue separate issues of revenue bonds for each of its eight Pr ' cts, w ich are payable solely from, and secured solely by, the revenues erived from the Project to which the bonds relate, plus available funds pledged under MMWEC'sAmended and Restated General Bond Resolution (GBR)with respect to the bonds of that Project. The MMWEC revenues derived from each Project are used solely to provide for the payment of the bonds of any bond issue relating to such Project and to pay MMWEC's cost of owning and operating such Project and are not used to provide for the payment of the bonds of any bond issue relating to any other Project. MMWEC operates the Stony Brook Intermediate Project and the Stony Brook Peaking Project, both fossil-fueled power plants. MMWEC has a 3.7% interest in the W.F. Wyman Unit No. 4 plant,which is operated and owned by its majority owner, FPL Energy Wyman IV, LLC, a subsidiary of NextEra Energy Resources LLC, and a 4.8% ownership interest in the Millstone Unit 3 nuclear unit, oper- ated by Dominion Nuclear Connecticut, Inc. (DNCI), the majority owner and an indirect subsidiary of Dominion Resources, Inc. DNCI also owns and operates the Millstone Unit 2 nuclear unit. The operating license for the Millstone Unit 3 nuclear unit extends to November 25, 2045. 35 A substantial portion of MMWEC's plant investment and financing program is an 11.6% ownership interest in the Seabrook Station nuclear generating unit operated by NextEra Energy Seabrook, LLC (NextEra Seabrook) the majority owner and an indirect subsidiary of NextEra Energy Resources LLC. The operat- ing license for Seabrook Station extends to March 15, 2030. NextEra Seabrook has submitted an application to extend the Seabrook Station operating license for an additional 20 years. Pursuant to the PSAs, the MMWEC Seabrook and Millstone Project Participants are liable for their proportionate share of the costs associated with decommission- ing the plants, which costs are being funded through monthly Project billings. Also, the Project Participants are liable for their proportionate share of the unin- sured costs of a nuclear incident that might be imposed under the Price- Anderson Act(Act). Originally enacted in 1957, the Act has been renewed several times. In July 2005, as part of the Energy Policy Act of 2005, Congress extended the Act until the end of 2025. The Reading Municipal Light Department has an o PSAs ower Purchase Agreements (PPAs) with MMWEC nder b As nd PPAs, the Department is required to m in p e to MWE pay ble solely from Department rev nues. U art PSA , ea a icipant is u condition- ally obliga ake p yme sdbet MM EC er or n t the Project(s) i mple o rati a n iths ndi g t e suspensio terruption of the ut ut ot�Pr ' ct( MWE i inv in ri us gala ' ns. In the opinion of management, the ou co cf su h li ' at aims will not have a material adverse effect on fi nc' I tion of the company. fter the July 1, 2018 principal payment, total capital expenditures amounted to $1,499,468,000, of which $127,174,000 represents the amount associated with the Department's Project Capability. MMWEC's debt outstanding for the Projects from Power Supply System Revenue Bonds totals $10,680,000, of which$182,000 is associated with the Department's share of Project Capability. After the July 1, 2018 principal payment, MMWEC's total future debt service requirement on outstanding bonds issued for the Projects is $7,959,000, none of which is anticipated to be billed to the Department in the future. The Department has no required payments under the PSAs and PPAs. In addition, under the PSAs, the Department is required to pay to MMWEC its share of the Operation and Maintenance (0& M) costs of the Projects in which it participates. The Department's total 0& M costs including debt service under the PSAs were $8,578,000 and $9,548,000 for the years ended June 30, 2018 and 2017, respectively. 36 21. Renewable Eneray Certificates In 2003, the Massachusetts Department of Energy and Environmental Affairs adopted the Massachusetts Renewable Energy Portfolio Standard (RPS), a regulation that requires Investor Owned Utilities (IOUs) to purchase mandated amounts of energy generated by renewable resources (Green Energy) as a percentage of their overall electricity sales. The Massachusetts RPS applies only to IOUs, so the Department is currently exempt from this mandate. Energy suppliers meet their annual RPS obligations by acquiring a sufficient quantity of RPS-qualified renewable energy certificates (RECs) that are created and recorded at the New England Power Pool (NEPOOL) Generation Infor- mation System (GIS). Suppliers can purchase RECs from electricity generators or from other utilities that have acquired RECs. As part of its ongoing commitment to Green Energy, the Departm has entered into Purchase Power Agreements (PPAs) with Swift ' yd LLC and Concord Steam Corporation to purchase power r ted from able energy resources. These PPAs include the partme titleto RECs, which certify that the energy pr was th p ct of a rene b resource. Because the Department is ex mpt fr m the RP rovi ions, iLhas he option of holding Cs mil t ey plr or Ilin throngNEPOOL D T do regardin he part s ff r 2018 REC activity and bal- i a foil EC ales urin Fiscal 2018 Unit Certificates Price Amount CT Class 1 6,756 $ 12.75 $ 86,139 CT Class 1 1,875 $ 2.00 3,750 MAClass 1 1,939 $ 12.75 24,722 MA Class 1 4,503 $ 2.00 9,006 MA Class 11 4,085 $ 25.00 102,125 MA Class II 616 $ 25.00 15,400 NH/MA/CT/RI Class 1 8,286 $ 12.75 105,647 NH/MA/CT/RI Class 1 6,655 $ 2.00 13,310 NH/MA/RI Class 1 3,973 $ 12.75 50,656 Total 38,688 $ 410,755 Itf (1) Sale proceeds netted against fiscal year 2018 purchased power fuel charge 37 REC Holdings at June 30, 2018 Banked Projected Total Estimated Certificates Certificates Certificates Value CT Class 1 6,888 8,631 15,519 $ 106,764 MA Class I & 11 6,837 6,995 13,832 153,626 MA/RI/NH 1 5,279 14,942 20,221 79,185 MA/CT/RI/NH 1 10,507 8,121 18,628 162,859 Total 29,511 38,689 68,200 $ 502,434 A banked REC is a REC that has been processed by the NEPOOL GIS Coor- dinator and is in the Department's GIS account.A projected REC is the Depart- ment's estimate of what will be received based on invoices generated by REC- producing projects that the Department has entitlements to. Because there is no formal accounting guidance under GAAP or IFRS fWAgECs and the Department does not have a formal policy for the fu sposi n of RECs, the estimated fair value of the Department' oldings a 30, 2018 are not recognized as an asset on the prieta tem nts of Net Position. 22. Leases rro \e —Relate P P ion - s Th D a e t i the I s f facilities that are currently sub-leased to the R adi wn mp s Federal Credit Union. The original sub-lease agree- en com need in December 2000 and was extended by various amend- ntsthrough November 30, 2018. Following is the future minimum rental income to be received by the Department under the terms of this lease for the year ending June 30: 2019 $ 4,084 Total $ 4,084 Operating Lease -Warehouse The Department is the lessee of a warehouse facility owned by JCM Real Estate Trust.The original lease agreement for this facility commenced in December 1998 and was extended by various amendments through May 31, 2016. Under the terms of the most recent lease amendment, the Department has exercised the option to extend the lease for an additional 24 months until May 31, 2020. Following is the future minimum rental expense to be paid by the Department for the year ending June 30: 2019 $ 147,902 Total $ 147,902 38 23. Commitments and Contingencies Outstanding Legal Issues-On an ongoing basis, there are typically pending legal issues in which the Department is involved. The Department's management is of the opinion that the potential future settlement of these issues would not materially affect its financial statements taken as a whole. 24. Beginning Net Position Restatement and Reclassification In fiscal year 2018, the Department implemented GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits other than Pensions. As a result of the implementation, the beginning (July 1, 2017) net position of the Department's proprietary fund has been restated as follows: Business-Type Activities Proprieta d As previously reported $ 3 ,0 Implementation of GAS 50 EB 723,2 As ,644,8 D D 39 TOWN OF READING,MASSACHUSETTS,MUNICIPAL LIGHT DEPARTMENT SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABIL"(GASB 68) JUNE$0,2018 (UnaudBad) Reading Contnbuto Retirement SVam. Proportion Proportionate of the Shareof Me Proportionate Share o/the Plan Fieuraary Net Positbn Fiscal Measurement Net Pension Net Pension Net Pension LiaNlity as a Percentageofthe Total Year pate Liability Liabilih, Covered Pavroll Pemenlaae of Covered Payroll Pension Liability June 30,2018 December 31,2017 29.15% $10,781,819 $ 6,938,057 15540% 79.32% June 30,2017 December 31,2016 29.15% $13.076,536 $ 6,393,765 204.52% % June 30,2016 December 31,2015 28.25% $12.862,732 $ 6,147,851 209.22% :::7127% June 30,2015 December31,2014 28.25% $8,464,663 $ 5,908,694 143, % schedales are mreneeeroahoyi rorroyears. wow yeerq . be ayes pw ayaoab�a. Seel mAudibrs epo D //�\ D 40 TOWN OF READING, MASSACHUSETTS, MUNICIPAL LIGHT DEPARTMENT SCHEDULE OF PENSION CONTRIBUTIONS (GASB 68) JUNE 30, 2018 (Unaudited) Reading Contributory Retirement System Contributions in Relation to the Contractually Contractually Contribution i utions as Fiscal Required Required Deficien y a ercentage of Year Contribution Contributio Excessi roll C ered Payroll June 30, 2018 $ 1 ,650,4 6 $ - 8,057 23.79% June 30, 2017 $ 1 579, $ ,579, 45 / \$ - $ 6,393,765 24.70% Ju 16 1461, 50 $ 1461,650 $ 6,147,851 23.77% Ju a 30, 1401, 38 1,40 ,638 - $ 5,908,694 23.72% Schedules are intended to show information for 10 years. Additional years will be displayed as they become available. See Independent Auditors' Report. 41 TOWN OF READING, MASSACHUSETTS MUNICIPAL LIGHT DEPARTMENT OTHER POST-EMPLOYMENT BENEFITS(OPEB) Schedule of Changes in the Net OPEB Liability(GASB 74 and 75) (Unaudited) 2018' 2017 Total OPEB liability Service cost $ - $ 245,842 Interest on unfunded liability-time value of$ - 698,939 Benefit payments, including refunds of member contributions (485,573) Net change in total OPEB liability - 45 ,208 Total OPEB liability-beginning 9,5 ,217 Total OPEB liability-ending(a) $ 0,015,425 Plan fiduciary net position C Contributions-employer $ - $ 794,319 Net investment in e - 22,484 POPEIts ind ng r fund ofm m c bib 'ons (485,573) pifi uci i net p ion - 331,230 o Rion-b inning 2,525,842 ilio -en $ $ 2,857,072 (asset)-ending (a-b)` $ $ 7,158,353 ' Balances do not include the effect of current year GASB 74 information. Balances will change when the actuarial information becomes available. 'Materially agrees with Statement of Fiduciary Net Position Schedule is intended to show information for 10 years. Additional years will be displayed as they become available. See notes to the Department's financial statements for summary of significant actuarial methods and assumptions. See Independent Auditors'Report. 42 TOWN OF READING, MASSACHUSETTS MUNICIPAL LIGHT DEPARTMENT OTHER POST-EMPLOYMENT BENEFITS(OPEB) Schedules of Net OPEB Liability,Contributions,and Investment Returns(GASB 74 and 75) (Unaudited) Schedule of Net OPEB Liability 2018' 2017 Total OPEB liability $ - $ 10,015,425 Plan fiduciary net position - 2,857,072 Net OPER liability (asset) $ - $ 7,158,353 Plan fiduciary net position as a percentage of the total OPEB liability #DIVIO! 28.5% Covered employee payroll - available Participating employer net OPEB liability (asset) as a percentage of covered employee payroll C.t - unavailable )butios ri utiorrc 2018 2017 Accume con ib 'on $ - $ 932,387 Conlat n to e a etennined contribution794,319 Conton xcess) $ $ 138,068 overed payroll $ - unavailable Contributions as a percentage of covered payroll $ - unavailable ' Balances do not include the effect of current year GASB 74 information. Balances will change when the actuarial information becomes available. Schedules are intended to show information for 10 years. Additional years will be displayed as they become available. See notes to Department's financial statements for summary of significant actuarial methods and assumptions. See Independent Auditors'Report. 43 POWER SUPPLY REPORT AUGUST 2018 ATTACHMENT 2 �1 ch •� O q N .� w ON .V4 N o C) � p N Cd -0,,a m W l M {A - C C C L M J2 E U Wco I �! O {A G 1 N 7 I m a u m s N 7 0 a i a N N N N N N N N y�j n m 2 a N N L � I 00 id IA 3 0Q E u L4 M - Q. ? W 0 t < w� m W O N L m L 9 Y � I S S OS S O S S O N O O S p p O p O S . S N S N S N N O < N r N N N N N N N N 00 `a N 0 � N I'A L d O u .0 N U Q i+ N d I CL m (U CL ta U = 00 < w a CO i t F O N $ s co o - N L �C G d Y Yw N W V H `a `w L o O ba I 7 N 0 > N C f0 H V I Q � N �I �M W O O O O N O O O C O O oO N 0 N a o z > o = m _ 6 O ¢ s v m o m i 3 X- 0 o ■ 01 J N m y 5 N Gou O A N O L O Om z N m 7 i aoF f i o L 3 Y f. 7 a+ v a m o O a c m r o g o i 3 i i ■ 0 0 a a w o � � v f i 'x S s 8 0 8 0 o S o 8 8 m 8 8 8 8 -0000,0 To: ,, , n^Coleen O'Brien Frop�J/1�/ " �vlaureen McHugh, Charles Underhill Date: ��, November 26,2018 Subject: Purchase Power Summary September 2018 Energy Services Division(ESD)has completed the Purchase Power Summary for the month of September 2018. ENERGY The RMLD's total metered load for the month of September was 57,439,114,which is a 1.39%increase from the September 2017 figures. The system distribution losses are 3.6%. Table 1 is a breakdown by source of the energy purchases. Table 1 AmomRa Costa %aTaal Total b"a Resource EneMy EneW EneW Costs % (kWh) (31a48i0 Milletanep 3,512,032 $5.3e 5.04% .522,401 1.09% Seabrook 5,800,]01 Saw 9.63% 333,156 1.62% Stp brook intemx151We 1,225,033 383.00 2.11% $",1T6 3.72% SMII En 9 9,338,800 $57.00 18.05% X32,302 25.9796 WPA 2,210,580 $5.29 3.85% $11,848 0.56% NeatM 19,038.000 335.18 32.74% 3889,222 32.85% ISO Interchange (3,715,942) $ 5W 4.39% 3174,382 4.51% Nmna Congestion - $0.00 0.00% 431,758 -1.55% Coop Resalac 26,193 $141.M 0.05% $3,712 0.18% EDF 5,597,800 $25.75 9.80% $145,746 7.18% Hydro Pno(eote' 3,8]3,100 Mae 5.85% 3285,414 13.92% Skalnbee wataon unit 535,948 $57.54 0.92% $31,001 1.51% SWdWb=WJenbhe Wind 1,127,211 1192.00 1.94% $103,699 5.06% Community Solar 583,571 373.15 0.97% 541,224 2.01% Exebn 8,972,800 $30.70 15,43% 3276,457 13.44% Stonybntok Peaking 113,585 111II&W 0.20% 322,584 1.10% Monthly ToW 58,147,190 $35.25 100.0410% 32,049,821 100.00% 'P9ppr # WomnoonInWan RWW Te FaaSCaana Rorww,Hoa yWllla Aspin Hy Jo Table 2 breaks down the ISO interchange between the DA IMP Settlement and the RT Net Energy for the month of September 2018. Table 2 Amount Cop % of Total Ptesouree of Energy of Energy Energy (kWh) ($IMwh) ISO DA LAS • 5,375,349 $56.23 9.24% Settlement Ri Net Energy •• (9,091,291) $53.01 -15.63% Seltlertent ISO Interchange (3,715,942) $46.92 -6.39% (mblo" •Independent SYMM OPyal)t D"Ahead LmAional McMinel Price SEPTEMBER 2018 ENERGY BY RESOURCE Solar Project,D.97% jedcho $!onybrook Pk,0.20% Wind,... Mun!one:13,5.1u1`S Fxe,. , ..•I9h .Seob,•gk,v.,.,". Saddleback,1.30% Smnybronk Intel,2.11% 6ELO,0.92% Hydro Projects,6.06% 000 Coop resales,0.05% Shell Energy,16.06% tak,9.tlrY. W'A M 1.50 Interchange,-6.39% IaYYA,:y5x, or Nextere,3274% CAPACITY The RMLD hit a demand of 154,834 kW,which occurred on September 6, at 3 pm. The RMLD's monthly UCAP requirement for September 2018,was 233,628 kWs. Table 3 shows the sources of capacity that the RMLD utilized to meet its requirements. Table 3 Sourw Amount(k1Na) Cwt($lldl$-nont 0 Total Coat$ %of Total Cast M fttorn$3 4,950 22.81 $112,887 5.92% Seabrook 7,914 19.78 $168,503 8.21% StonyMadk Peeking 24,980 1.86 $46,487 2.44% Slalybrcok CC 42,925 3.30 $141,502 7.42% NMA 0 0.00 -$21,927 -1.15% Flydro Quebec 0 0 $22,710 1.19% Bralntree Watson Una 0 0.00 $110,821 5.82% ISO-NE Supply/ruction 152,859 8.75 $1,338,081 70.16% Total 233,628 $8.16 $1,907,164 100.00% Table 4 shows the dollar amounts for energy and capacity per source. Table Costo %of Amtof Energy Power Resource Energy Capacity Total cost Total Coat (1,M) ($/kWh) Millstone a3 $22,401 $112,887 $135,288 3.44% 3,512,032 $0.0365 Seabrook $33,158 $158,503 $189,659 4.82% 5,800,701 $0.0339 Storybmok Intermediate $77,178 $141,502 $218,678 5.58% 1,225,033 $0.1785 Hydro Quebec $0 $22,710 $22,710 0.58% - $0.0000 Stroll Energy $532,302 $0 $532,302 13.63% 0,338,800 $0.0570 NextEra/EDF $869,222 $0 $889222 17.01% 19,038,000 $0.0352 ` NMA $11,846 $0 -$10,081 -0.26% 2,240,580 40.0045 NYPA FCM Credit $0 -$21,927 -$21,927 -0.60% - $0.0000 ISO Interchange 4174,362 0 -$174,362 -4.43% (3,715,942) $0.0469 ISO Capacity $0 $1,338,081 $1,338,081 34.00% - $0.0000 Noma Congestion 431,768 $0 431,788 -0.81% - $n0000 EDF $146.748 $0 $149746 3.73% 5,697,600 $0.0258 ` Hydro Pro)eos $285.414 $0 $285,414 7.25% 3,873,100 $0.0737 Braintree Wagon Unit $31,001 $110.921 $141,922 3.61% 535,946 $0.2618 ` SadoebacidJedcho $103,699 $0 $103,009 2.64% 1,127,211 $0.0920 ` Burlington B Community Solar $41,224 $0 $41,224 1A5% 563,571 $0.0731 Coop Resales $3,712 $0 $3,712 nDv% 26,183 $0.1417 Esalon Energy $275.457 $0 $275,457 7.00% 8,972,800 $0.0307 Sionybrock Padding $22,594 $46,487 $69,081 1.76% 113,585 $0.8062 Monthly Total $2,049,821 $1,907,164 $3,935,058 100.00% 58,147,190 $0.0577 *Renewable Resource;per RMLD Board Policy,any RECs are sold to ofrmt mergy east for as mstomen. RENEWABLE ENERGY CERTIFICATES (RECs) Table 5 shows the amount of banked and projected RECs for the Swift River Hydro Projects through September,as well as their estimated market value. Tables RECa Summary 2078 REC REG REG 010 Revenue' Rawnue" ClxdRcaaon Putecbd Sold Cu"M PMeMlal Rarelwd R1 8,681 all" 2.00 $17,321 $28,589 6151 2,246 1,033 2.00 $4,461 $7,679 nWR/RVRH1 13,806 6,724 3.00 $40,818 Swm sea/RVRH 1 7,891 3.864 3.00 3123,073 $27,222 Ma2 4,675 2,115 25.00 $114,375 $54,403 TO-Uls 36,778 17,410 _ $2 ,078 5167,952 'ae.,Pralaaled wld x amM kN anus 'Rafal doses la dale lar R veal TRANSMISSION The RMLD's total transmission costs for the month of September 2018, were$1,548,248. This is an increase of 14.45% from the August 2018 transmission cost of$1,352,807. In September 2017,the transmission costs were$1,351,323. Table 6 Current M h Wt Muds Wt Year Peak Demand(kw) 154,836 183,835 127,181 EreW(kwk) 55,147,180 74,898,135 58,437,1112 Enal9e(6) $2,De8,821 $3.227,829 $1,982,764 cal a yno $1,907,184 61,e 'I" 62,158,883 Trenanh"W(6) $1,518,248 61,352,807 $1,351,323 Total 0,505,232 $8.3&1,528 $5.500.800 - ENGINEERING & OPERATIONS REPORT SEPTEMBER 2018 ATTACHMENT 3 O y �0 O rn 4-- C:C } ^` 0Y CWO� W a) L 0 O } C � a L Lm O C-4 O •N N •� E06 E N C E cao) Lu o O _ N O O > E U O a, N •i � Z m O "' m O C •� O W A -00000 F-V; ! \ \) § q ® erq ® . ' \ 7 \ \ \ \ \ rG ® m ; ye e - » ! . n ea7 g ƒ 3 { 711 ® ! } § � _ 2 � , w � § \ < \ \ § \ \ \ \ \ \ ( \ \ § \ \ q \ / { \ i ! 0 , 6036 ! 0 00 | o od & r0. ) ! . E _ \ \ \ _ 0 k • / 0 0 t § ) m ! ` y . 3: / se S # o � G l5i t § { ® [ k ! « f � -a '0 ) k � � ` � � ° - @ \ ) / / \ � L c CL E / C / \ \ / \ ) = ; ( CU WXw - la0u0 0- , ; $ & _ = [ o ) a , AZw \ —0c }CL S ] a ) -0 c # § rpt ! \ 33 ` mm £ ! 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T10N6 230 Ash Street,P.O.Box 150 Reading,MA 01867-0250 November9,2018 Town of Reeding Municipal Light Board Subject: IFP 2019-02 750 MCM 15kV Power Cable Pursuant to M.G.L c. 164§ 56D,on October 17,2018,an invitation for proposal wee placed as a legal notice in the Middlesex Ent Serum of the Daily Times Chronicle requesting sealed proposals for 750 MCM 15kV Power Cable. An invitation for proposals was sent to the following thirteen companies: A.A.MacPherson Co.,Inc. Arthur J.Hurley Company,Inc. E.L.Flowere&Associates First Line Associates HuGo Power Equipment Marmon Utility,LLC Pirelli Cable Corporation Power Sales Group,Inc. Shamrock Power Sales Smart C.Irby Company The Okonitc Company WESCO Distribution Yale Electric Ent LLC Sealed proposals were received from four companies: Stuart C. Irby Company, Arthur J. Hurley Company, Lx., WESCO Distribution,and The Okaalm Company. The settled proposals were publicly opened and read aloud at 11:00 a.m.,November 1,2018,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 2019-02 for 750 MCM I5kV Power Cable be awarded to:Arthur d.Hurley Company, Inc., for $124,488.00, pursuant to M.G.L. Chapter 164 § 56D on the recommendation of the General Manager. The CY19 Capital Budget amount for this item is$97,403.The remaining balance will be charged to the Operating Budget for inventory. E%'sm/)goal Agotten a� Hamid Jeffg- Cokxn O'Brien File.fila/FYl9 CYl9/2119-02 750 MCM 15kV Pow=Cable GO ! � i� ! ■ ■ B | § ` -Me ■ ! � ia • . .. ■ ! � ! ! ■ ! ! k � ! ! ! ■ $ II k j \ \ vi - � \ E k | ) § { / LD 2f a . 0 I) � £ RMLD MoBteipRlLight Depart- 0.EL1/.eLE ]OYER FOR GENERATIONS Depart— (0) 230 Ash Street,P.O.Box 150 Reeding,MA 01867-0250 November 9,2018 Town of Reading Municipal Light Board Subject: IFB 2019-06 Electrical Utility Excavation including Emergency Excavation and Congtmetion Services Pursuant to M.G.L c. 30 § 39M, on October 10, 2018, an invitation for bid was placed as a legal notice in the Middlesex East Section of the Daily Times Chronicle requesting sealed bids for Electrical Utility Excavation including Emergency Excavation and Construction Services. An invitation for bid was sent en the following seventeen companies: Caruso and McGovem Construction,Inc. Deitek E.B.Roondi&Sous,Inc. Fischbach&Moore Electric Group,LLC James Lynch Construction Co.,Enc. K&R Construction Co.,LLC Mattuchio Construction Co.,Inc. Menton Construction Co.,Inc. Northeast Site Development,LLC Power Line Contractors,Inc. Prime Vendor,Inc. Projectdog R.S.Burford Co.,Inc. Tim Zanetti Excavating,LLC Tro-Con Corporation Ventresca,Inc. W.L.French Excavating Corporetion Sealed bids were received from two compeoics: Caruso and McGovern Construction, Inc. and Tim Zanel i Excavating,LLC. The sealed bids were publicly opened and read aloud at 11:00 am.,Novembw 1,2018, in the Town of Reading Municipal Light Department's Audio Visual Spurr Room,230 Ash Street,Reading,Massachusetts. The bids were reviewed,analyzed,Bud evaluated by staff and recommended to the General Manager. Move that bid IFB 2019-06 for: Electrical Utility Excavation including Emergency Excavation and Construction Services be awarded to: Tim Zanelg Excavating, LLC, for a not to exceed amount of $100,000 pen year(without written approval)pursuant to M.G.L c.30§ 39M,sa the lowest responsible and eligible bidder on the recommendation of the General Manager. Them seserArvices will be paid for from the CY19-21 Capita($90,000)and Operating($210,000)Budgets. Brian Smith Humid J-- Coleen O'Brien File:Btd/n-M9/2m9-06 for:Electrical Utility Exavetion Services ! �\ 20 c / e k ) - . 2k # t k ■ ■ f / � / ) . . 2 ■ ■ ■ $ § k \ . LO . % ` ) / \ B2 § � Iq0 2 § § _ k4* g L ■ , e% � Cf _ )§ 2; {! kms ` \ \ a $ 2 / ; e! # \ � ) � � f No, ■ ED a | ■ ■ # c � � % | EfaZ to =c LNU ) ) ) ! � k � ■ m e EEEE § | fa # 2o r & It 1= aaaa BOARD MATERIAL AVAILABLE BUT NOT DISCUSSED |I§ ■E- § | ! | ,; .° ! :•- ` � . 9 | ( | | § Wag � ' ■ , 2 . . - ; | . , : , _ • , , ! � . . ° : , ) | . . . . , . 1 . , ; . : . . ■ . . : . : . . From: Tracy B[buM To: RML)Board Members Grouo:'Dave Hennem(QaNdb nn �®omah.mm)" subject: AP and Payroll Questions(or 11-29-18 Board Book Dad: Wednesday,November 28,2018 6:21:00 AM Good afternoon, AP: On October 19th there were no Commissioner questions. On October 26th there were no Commissioner questions. On November 2nd a Commissioner asked about an attorney invoice regarding an audit letter. On November 9th there were no Commissioner questions. On November 16th there were no Commissioner questions. On November 23rd there were no Commissioner questions. Payroll: On October 29th there were no Commissioner questions. On November 12th there were no Commissioner questions. On November 26th there were no Commissioner questions. This e-mail will be included in 11-29-18 Board Book. Tracy Schultz Executive Assistant Reading Municipal Light Department 230 Ash Street. Reading. MA. 0186 Tel: 781 .942.6489