HomeMy WebLinkAbout2019-02-13 RMLD Board of Commissioners Minutes �r
Town of Reading R=CEIVED
Meeting Minutes TOWN CLERK
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eoard - Committee - commission - council: 2613 JUN 26 `1110108
RMLD Board of Commissioners
Date: 2019-2-13 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; Thomas 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 Utility
Technology; Tracy Schultz, Executive Assistant
Citizens' Advisory Board: Jason Small, Vice-Chair
Town of Reading: Mark Dockser, Finance Committee.
Minutes Respectfully Submitted By: John Stempeck, Secretary Pro Tem
Topics of Discussion:
Call Meeting to Order
Chair 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, Lynnfield, and Wilmington.
Public Comment
Chair Hennessy welcomed Mr.Small and Mr. Dockser and asked Mr.Stempeck to serve as Board
Secretary.There was no public comment.
Report of the Citizen Advisory Board Meeting on February 13,2019
Mr. Stempeck stated that the CAB met prior to the Board. The CAB reviewed and commented
on the Board's motion regarding the payment to the Town of Reading. The CAB had insightful
questions and they passed the motion as stated.
Mr. Pacino stated that Frank Hadley, a long-time employee and General Line Foreman, passed
away and expressed the Board's condolences to Frank's wife Claire,who was also an employee
of RMLD.
Page 1 1
General Manager's Report-Ms.O'Brien
a. Report on attendance at the NextEra Energy Marketing Public Power Summit on
February 4 to February 6,2019
Ms. O'Brien thanked the Board for allowing her to attend. NextEra did an excellent job
presenting on 0 variety of topics. Solar issues in Colifornio were discussed. During the day the
solar is taking on a large amount of the baseload, but solar is not dispatchable: generation
alternatives need to be used at night. Gas prices were discussed. New England has a gas
shortage during the winter due to limited piping capacity. Ms. O'Brien stated she has asked
NextEra for the presentation slides, which she will pass on to the Commissioners. It was two and-
a-halt days of training,kWh sales dropping throughout nation was discussed.
Mr. Underhill stated that one of the issues with the more popular renewable resources are that
they are non-dispatchable. Solar production occurs for about a 16 percent window over the
course of the year. That's its production factor. The load profile of RMLD is about 70 percent
efficiency during the course of any month, and about 55 percent over the course of the entire
year. There is a significant mismatch when you produce 16 percent of the time and need to
spread that over another 55 to 70 percent of the time. In order to do that, you have to have
storage capability. The ISO in California and the ISO in New England have both introduced
significant amounts of solar generation in the past ten years and California has reached its
saturation limit. Any new solar is supposed to have storage capability. You need to fill the
nighttime hours with generation;solar can't do that. RMLD has a battery storage project coming
online this summer. It has 5 megawatts of battery capability at 10 megawatt hours. Chair
Hennessy asked how much energy that is and what it will support. Mr. Underhill answered that
the average home in RMLD's service territory uses 750 kWh a month. 10,000 megawatt hours
would accommodate about 1,200. Mr. Talbot asked about peak reduction. Mr. Underhill stated
It would be about three percent of RMLD's peak usage and will be used to reduce RMLD's net
peak obligation. Mr. Talbot stated that he didn't think RMLD was close to its solar threshold. Ms.
O'Brien stated that each feeder can only handle a certain amount of solar, but the reason she
brought it up was because legislation in Massachusetts has been mirroring California. RMLD
wants to stay ahead of the battery storage curve. RMLD will continue to look at community
solar. The issue is solar development without storage capability. Mr. Underhill added that there
are no plans to slow solar development at RMLD.
b. Organizational Study Report
Ms. O'Brien stated that there are four items remaining, which are employee surveys, customer
surveys, HR support and the strategic plan revision. Community Relations is working on the
surveys. For HR support, the HR Manager gave her notice.Ms. O'Brien stated that she has started
interviewing and there are a number of vacancies posted on the website. Senior management
had a second meeting to develop the strategic plan, which is being facilitated by Selectman
Prisco from North Reading.Once it is in the draft stage if will be shown to the Commission.
Integrated Resources Division-Mr. Underhill
Power Supply Report-December 2018
Mr. Underhill stated that through the end of the year there was essentially zero differential
between actual and budget. Energy costs were a little lower than budgeted. Capacity broke
even. The transmission expense was higher. Mr. Underhill reviewed the resources by month. In
September, November, and December RMLD sold resources into the market as opposed to
purchasing. Mr. Underhill then discussed the 2018 resource portfolio and stated there was twelve
percent market exposure. Mr. Underhill announced that the greenhouse gas report has been
completed for 2017.
Mr. Dockser asked how much RMLD wants to be buying in the spot market. Mr. Underhill
explained that some piece will be in the spot market. Day ahead and real time markets are the
lowest priced energy. RMLD uses other resources because they accomplish other objectives.
Purchasing wind, solar, and hydro help meet greenhouse gas emissions commitments. RMLD
buys some power through NextEra because if stabilizes the price paid and eliminates volatility.
RMLD looks for about 10 to 15 percent market exposure. RMLD tries to keep the exposure down
Page 1 2
Integrated Resources Division-Mr. Underhill
Power Supply Report-December 2018
in the winter and summer months. Mr. Underhill stated that when the market price goes up RMLD
has protection built into its portfolio. Exposure is capped. Ms. O'Brien asked Mr. Underhill to plan
to give an update on the load following pilot.The agreement has been executed NextEra at less
than September prices.
Reliability Study Report-Mr.Jaffori
Mr. Jaffari stated he would be reporting on items recommended in the Booth Study.
Approximately 65 percent completed. RMLD is negotiating with National Grid for land for the
Wilmington substation. Once the substation Is built most of the items will be completed.Since the
lost report, the GIS upgrade program has been completed. An editing program has been built
on top of the GIS. The Milsoft Windmil model and the SCADA software upgrade have been
completed. The load was balanced with underground getaways at main feeder 4W28 at
Analog. The timing delay on Station 3 transformers have been updated and rail gauges have
been replaced. The cooling contactor of transformer 11 OD at Station 4 has been repaired.
General Discussion
Mr. Pacino asked about a pole on South Hopkins that keeps getting hit by vehicles. Mr.Jaffari
replied that engineers have looked at it.The pole is in Wakefield.Mr.Jaffari stated he is talking to
Reading DPW about installing a guardrail.
Mr. Pacino Green New Deal. Resolution at the federal level.Ten-year time table.
Mr.Stempeck stated that he had heard there are concerns from the Select Board that the Town
would be included in any liability that RMLD faces. Mr.Stempeck stated that he asked legal
counsel and RMLD is separate from Town. Mr.Stempeck invited the Select Board to provide
clanfication regarding what the concerns are.
Meeting dates were discussed.
Adjournment
At 8:43 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,
competitively-sensitive 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
as approved by a majority of the Commission.
John Stempeck,Secretary Pro Tem
RMLD Board of C missioner
Page 1 3
READING MUNICIPAL
LIGHT DEPARTMENT
BOARD OF COMMISSIONERS
REGULAR SESSION
WEDNESDAY, FEBRUARY 13, 2019
POWER SUPPLY REPORT
NOVEMBER 2018
ATTACHMENT 1
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To: Coleen O'Brien /�'({
From.^vLL..1�1 Maureen McHugh, Charles Underhill a,
Date:J �� LFebruary 7, 2019
Subject: Purchase Power Summary-December 2018
Energy Services Division(ESD)has completed the Purchase Power Summary for the
month of December,2018.
ENERGY
The FMLD's total metered load for the month of December was 55,988,721, which is a
4.95%decrease from the December 2017 figures. The system distribution losses are
3.6%.
Table 1 is a breakdown by source of the energy purchases.
Table 1
Amount of Cast of %of Total Tote$ $asa
Resource Energy Energy Energy costs %
(kWh) l$/Mesh)
Millstone#3 3,697.773 $6,38 15.16% $23,586 0.78%
Seehrook 5,895,086 $5.27 9.83% $31,081 1.03%
Stonyhrook Intermediate 346,316 $89.43 0.58% $31.150 1.04%
Shell Energy 9,39.400 558.84 15.66% $5 ,088 17,75%
NYPA 2,697,211 $5.22 4.51 $14.093 0.47%
NeMera 21,046,000 Met 35.08% $834,199 27.72%
ISO Interchange (3,55.173) $0.12 -5.93% 4425 -0.01%
Nemo Congestion $000 0.00% $25,121 0.83%
Caog Resales 11,726 $162.45 0.02% $1,905 0.06%
EDF 1,728,000 $52.50 2.88% $90,720 3.01%
Hydro Projects• 9,766,165 $85.85 16.28% $838,410 27.86%
Braintree Watson Unit 58,093 $54487 0.10% $31,653 1.05%
SaddlebacklJe ioho Wind 1,972,489 $82.67 3.299k $163,453 5.43%
Community Solar 328.371 $76.74 0.55% $25,199 0.84%
Ekelon .58.400 $54.89 10.98% $381,508 12.01%
Slonyterook Peakkig 14,052 $253.38 O.D2% $3,561 0.12%
Monthly Total 59,989,909 $50.16 100.00% $$009,300 100.00%
'Papperse Woronocn,lnd m,Rives,Turner-Falls,Coffins,Plonser,Roslry M#Is,ASP/000k Hydro
Table 2 breaks down the ISO interchange between the DA LMP Settlement and the RT
Net Energy for the month of December 2018.
Table 2
Amount Cost %of Total
Resource of Energy of Energy Energy
(kWh) ($fMwh)
ISO DA LMP4,589,975 $68.88 7.65°%
Settlement
RT Net Energy" (8,146,149) $38.84 -13.58%
Settlement
ISO Interchange (3,556,173) $11.96 -5.93%
(subtotal)
'InCewoftnt system Operator Dy-Ahead Locational Marginal Price
DECEMBER 2018 ENERGY BY RESOURCE
solar Protects.u.55 1...cho
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1) Seabrook,4.biYfi
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CAPACITY
The RMLD hit a demand of 98,966 kW,which occurred on December 10,at 4 pm. The
RMLD's monthly UCAP requirement for December 2018, was 235,408 Ms.
Table 3 shows the sources of capacity that the RMLD utilized to meet its requirements.
Table 3
Source Amount(kWs) Cast($/kW-month) Total Cost$ %of Total Coat
Millstone#3 4,950 22.68 $112,254 5.58%
Seabrook 7,914 18.66 $147,647 7.34%
Slonybrook Peaking 24,980 3.09 $77,073 383%
Stonybrook CC 42,925 3.30 $141,549 7.04%
NYPA 0 0.00 $16,899 0.84%
Hydro Quebec 0 0 -$20,828 -1.04%
Braintree Watson Unit 0 0.00 -$2,322 -0.12%
ISO-NE Supply Auction 154.639 9.95 $1,538,969 76.52%
Total 235,408 $8.54 $2,011,241 100.00%
Table 4 shows the dollar amounts for energy and capacity per source.
Table 4 Cost of
of Amt of Energy Power
Resource Energy Capacity Total cast Total Cost (kWh) ($/kWh)
Millstone#3 $23,586 $112254 $135,839 270% 3,697,773 $0.0367
Seabrook $31,081 $147,647 $178,727 3.55% 5,895,086 $0.0303
Stonybmok Intermediate $31,150 $141,549 $172,699 343% 348,316 $0.4958
Hydra Quebec $0 -$20,828 -$20,828 441% - $0.0000
Shell Energy $534088 $0 $534,008 1080% 9.396400 $0.0566
NeMEWEDF $834,199 $0 $634,199 16.56% 21,046,000 $00396
* NYPA $14,093 $0 $30.992 0.62% 2,697,211 $0.0115
NYPA FCM Credit $0 $16,899 $16,899 0.34% - $0.0000
ISO Interchange -$425 0 -$425 -0a1% (3,556,173) $0.0001
ISO Capacity $0 $1,538,969 $1,538,969 30.55% - $0.0000
Nemo Congestion $25,121 $0 $25,121 0.50% - $0.0000
EDF $90,720 $0 $90,720 1.80% 1,728,000 $0.0525
e Hydro Projects $838410 $0 $836410 16.64% 9766,165 $0.0858
Bhuneee Watson Unit $31,653 42,322 $28,331 0.58% 58,093 $0.5049
' Saddlebacklde irl $163453 $0 $163,453 3.24% 1,901,489 $0.0829
Burlington B Community Solar $25,199 $0 $25,199 0.50% 328,371 $0.0767
Crop Resales $1,905 $0 $1,905 0.04% 11,726 $0.1824
Essen Energy $361,508 $0 $381,508 7.18% 6,586.400 $0.0549
Stonybrook Peaking $3,561 $77073 $80,634 1.60% 14.052 $5.7382
Monthly Total $3,0091 $2,011,241 $5,037440 100.00% 59,989,909 $00640
*Renewable Resources;per RMLB Board Policy,any RECs are sold to affect energy costs for all customers.
RENEWABLE ENERGY CERTIFICATES(RECIO
Table 5 shows the amount of banked and Projected RECs for the Swift River Hydro
Projects through December, as well as their estimated market value.
Table 5
RECs Summary
2018
REC RECs RECs 810 Reyenuee Revenue'*
Classification Projected sold Current Potentlal Received
at 10,759 3,884 7.50 $80,689 $28,589
MAI 2,693 1,033 7.50 $20,195 $7,649
MA/Cr/111/1011 17,817 6,724 fi 75 $120,265 $50,090
MA/RI/NN I 9,804 3,654 6.50 $53,726 $27,222
MAS 5,470 2,115 25.50 $139,485 $54,403
Totals 46,542 17,410 $424,359 $167,952
'REO ivajected sole at current bid prices
`•Total dol4n to datefor REO sad
TRANSMISSION
The RMLD's total transmission costs for the month of December, 2018, were $927,139.
This is a decrease of 2.28% from the November 2018 transmission cost of$948,803. In
December 2017,the transmission costs were$858,764.
Table 6
Ganem Month lest Month Last Year
Peak contend(kW) 96,966 104,573 104,381
Energy(kWh) 59.969,909 53,056,009 58,902,789
Energy($) $3,009,300 $2.286.344 $2,979,091
capacity($) $2,011.241 $1,938.789 $2.021,055
Tmnamisaion($) $927,139 $946,803 $858.764
Total $5.947,679 $5,173.935 $5,856,910
RELIABILITY STUDY REPORT
ATTACHMENT 2
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BOARD MATERIAL AVAILABLE
BUT NOT DISCUSSED
F..: Tracy Scbul�
To: RMLD Board Members Gr000;"David Hen
SubjM: AP and Payroll Questions for 2-13-19 Board Book
Date: Thursday,February 02,201912:38:00 PM
Good afternoon,
AP:
On January 2511 there were no Commissioner questions.
On February 1 s1 there were no Commissioner questions.
Payroll:
On January 21" there were no Commissioner questions.
On February 41h there were no Commissioner questions.
This e-mail will be included in the 2-13-19 Board Book.
Tracy Schultz
Executive Assistant
Reading Municipal Light Department
230 Ash Street. Reading. MA. 0186
Tel: 781.942.6489