HomeMy WebLinkAbout2011-05-18 RMLD Citizens Advisory Board Minutes - Executive Session RECEIVD
TOWN CLERK
READING, MA
CITIZENS'ADVISORY BOARD(CAB) 2119 JUL 30 AM 9: 56
MEETING MINUTES
EXECUTIVE SESSION
TIME: 7:05 P.M.
DATE: Wednesday, May 18,2011
PLACE: Reading Municipal Light Department,AV/Spurr Room
PRESENT: CAB: A.Carakatsane, Chairman (Lynnfield),G.Hooper(Wilmington), T.011ila(Wilmington), T.
Capobianco(Reading)
RMLD Board: R.Hahn
RMLD Staff: V. Cameron, J.Parenteau, Bill Seldon,J. Carpenter, P. O'Leary
ABSENT: J. Norton(North Reading)
1. Call Meeting to Order-A. Carakatsane
Chairman Carakalsane called the meeting to order at 7:05 P.M.
2. Minutes of Meeting-January 19,2011 -A. Carakatsane
Mr. Hooper made a motion seconded by Mr.011ila to approve the CAB minutes of January 19, 2011 as
written.
Motion carried unanimously by a poll of the CAB: 4:0:0- Mr. Capobianco -Aye; Mr. 011ila -Aye; Mr.
Hooper-Aye; Mr. Carakatsane-Aye.
3. Long Tenn Power Supply Option-V. Cameron,J. Parenteau
Mr.Cameron stated that there has been a change of heart on this since looking at the analysis of a long
term contract with Constellation Energy. There was a meeting of the Power and Rate Committee on
Monday night, and they took no action. Ms. Parenteau stated that as result of the recent bankruptcies and
the acquisition by Constellation Energy of Boston Generating Gas Fleet assets: Fore River and Mystic 7, 8,
9, and Mystic Jet, which were approved by the Federal Energy Regulatory Commission(FERC)on
December 22,2010, a potential contract with Constellation Energy is no longer attractive.
Ms. Parenteau explained that the RMLD had met with other municipalities and discussed approaching
Constellation to ask if they would be interested in signing a long term contract. The contract would meet
some of RMLD's base load requirements in its portfolio. The meeting with the municipalities brought to
RMLD's attention that Energy New England (ENE)on behalf of some its clients had been working with two
other suppliers,and received pricing for units with similar characteristics to Constellation's.(Note: Unit
characteristics are listed on Table 2 in the packet.) RMLD had several conference calls with Constellation,
who were very interested in providing pricing and negotiating a long term contract.
Ms. Parenteau explained the risks involved,the forward capacity market,a surplus of generation, the
decrease in market prices since the February/March timeframe, energy savings,the current market costs,
and the possibility of Salem Harbor shutting down. After analyzing this information and taking a portfolio
approach,Ms.Parenteau stated that the RMLD was not overly excited about the overall risk hedge
opportunity. She noted that based on the overview of pricing factors, risks,and uncertainty,the general
consensus of the Power and Rale Committee members was not to pursue this contract. The Power and
Rate Committee suggested that the Energy Services Division(ESD)look at capacity in a five to ten year
period to get a sense of purchasing capacity without taking on the added risk. ESD will take that suggestion
and report back as other options arise.
Discussion ensued.
Mr. Cameron stated that the attraction to deal diminished with the additional information received.
Mr.Carakatsane stated that the consensus of the CAB was to take no action on this item.
Citizens'Advisory Board Meeting Minutes 2
May 18. 2011
4. Annual RFP
Mr. Cameron stated that discussion on the Power Supply Annual RFP can be done in open session.
5. Other Items for Discussion
None.
8. Adjournment
Mr.Hooper made the following motion at 7:25 P.M. seconded by Mr.011ila:
MOVE that the CAB return to Regular Session.
Motion carried unanimously by a poll of the CAB: 4:0:0—Mr. Capobianco—Aye; Mr. Hooper—Aye; Mr.
011ila—Aye; Mr.Carakatsane-Aye.
Respectfully submitted,
George Ho r �~
Minutes approved on: May 15, 2013
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