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Board - Committee - Commission - Council:
RMLD Citizens Advisory Board
Date: 2020-04-16 Time: 6:30 PM
Building: Location:
Address: Session: Open Session
Purpose: General Business Version: Final
Attendees: Members- Present:
Mr. Dennis Kelley, Chair(Wilmington Representative); Mr. Jason Small, Vice
Chair (North Reading Representative); Mr. George Hooper, Secretary
(Wilmington Representative); Mr. Joseph Markey (Lynnfield Representative);
Mr. Vivek Soni (Reading Representative)
Members- Not Present:
Others Present:
Mr. David Hennessy, Board of Commissioners
Ms. Coleen O'Brien, Mr. Hamid Jaffari, Ms. Wendy Markiewicz, Mr. John
McDonagh, Ms. Kathleen Rybak, Mr. Charles Underhill
Minutes Respectfully Submitted By: Mr. George Hooper, Secretary
AF
Topics of Discussion:
PER GOVERNOR BAKER'S MARCH 10,2020,ORDER SUSPENDING CERTAIN PROVISIONS OF THE
OPEN MEETING LAW,G.L. c. 30A, §20 THIS MEETING WAS HELD REMOTELY VIA ZOOM.
1. Call Meeting to Order and Introductions—D.Kelly,Chair
Chair Kelley called the meeting to order at 6:30 PM and noted the meeting was being audio
recorded.
2, General Manager's Update—C.O'Brien,General Manager
Materials: COVID-19 Emergency Plan of Operations&Major Emergency Plan of Operation
(Presentation Slides)
Ms.O'Brien welcomed Mr.Joseph Markey the Lynnfield Representative. Mr.Markey provided a
brief overview of his background.
COVID-19 Update: Ms.O'Brien reported that In response to the COVID-19 crisis,the RMLD
immediately organized an emergency response team consisting of eight senior staff(Directors and
Assistant Directors);this group meets daily at 10:00 AM. Ms.O'Brien noted that the DPU extended
the moratorium for residential shutoffs. The RMLD has an obligation to serve and to maintain
certain levels of construction and reliability to the electric system. Staff are working with local and
national peer groups,and continually reviewing federal,state,and local guidelines to determine
PiWIr
best practices.The RMLD has developed EOP 20-03 Emergency Infectious Disease Plan,a living
procedure with linked updates from the Governor,Board of Health,and local Incident Command.
Ms.O'Brien reviewed the presentation slides,noting RMLD Is currently in Phase It of the Emergency
Plan of Operations.
Ms.O'Brien asked Mr. McDonagh to update the CAB on the response to the recent storm(on April
13)and to provide an overview of restoration operations. RMLD had roughly 3,900 customers
interrupted during the storm and responded to over 40 calls. Most services were restored within
the first 24 hours,with restoration for damage to single electric services continuing thereafter. All
service has now been restored.
Ms.O'Brien reported that the Wilmington Board of Selectmen voted to approve the extension of
the 20-Year Agreement,and thanked Mr.Hooper and Mr.Kelley for their assistance with the
process. Ms.O'Brien noted that letters went out to each town regarding the extension and
responses are due back to RMLD by May 310.
3. Integrated Resources Report—C.Underhill, Director of Integrated Resources
Materials: RMLD COVIO-19 Virus Impact Assessment(Presentation Slides)
COVID-19 Load impact Discusslun: Mr.Underhill reported that staff is working to identify what the
impacts of COVID-19 might be on RMLD's financial situation and what appropriate responses that
would engender. Mr.Underhill noted staff is assessing changes both externally and internally(as
outlined on Slide 2),looking at load changes,fixed operating expenses and howthe capital budget
may evolve overtime.
Mr. Underhill then reviewed the COVID-19 Load Impacts on RMLD(Slide 3)noting that staff used
estimates of what other utilities within high COVID-19 risk areas are/have experiencing/ed;RMLD
does not have enough data to generate RMLD estimates at this time;collections remain steady to
date. Mr.Underhill noted that staff has looked at the COVID-19 load impact on the power supply
budget,and projected(with the lower load and our contractual commitments)through the end of
2020. The RMLD is(currently)assuming a straight 8%load reduction for the remainder of 2020 and
a straight reduction in peak values for transmission savings. RMLD will not wean impact to
capacity for another year. Mr. Underhill reviewed the RMLD Monthly kWh Load Comparison(Slide
4),which shows historic values from 2018,2019,and the 2020 budgeted value. Mr.Underhill noted
2020 actual year-to-date(through March)is below budget due primarily to the warmer than
expected winter that significantly reduced the wholesale load. Mr.Underhill then reviewed the
Assumptions(Slide 5)used(with the 2020 budget as a baseline)to understand cash reserves and
how much revenue erosion RMLD could support overtime. Staff has been in touch with Nextera
(one of our larger energy suppliers)as one of the phase contingencies to discuss the potential of a
deferment of some power supply expenses.
Mr.Underhill continued with a review of Slide 6(Assess Impacts). Mr. Underhill noted the RMLD
has suspended some programs related to appropriate social distancing and in-home inspections and
will be modifying some programs,i.e.,the residential audit program,inspections on efficiency
Installations at commercial and industrial sites;distributed generation has slowed dramatically. Mr.
Underhill stated that staff will monitor programs so that RMLD can continue to deliver programs and
services.
Slide 7(COVID-19 2020 Power Supply Impacts)reflects an"$2.1 reduction in power supply expense.
Mr.Underhill noted the rate goes up rather than down because the kilowatt hours in the load
dropped faster than the price. Mr.Underhill pointed out a typo(on"Power Supply Budget Q2-014
2020);the 1.035 is the 3.5%distribution losses that RMLD experienced,so it converts it from a
Paye 1 2
wholesale load to anticipated retail sales. At retail,the power supply portfolio cost would be at
$0.8560;with the COVID-19 adjusted budget it is at$0.08876 For the remainder of the year we had
anticipated a reduction in the purchase power,and capacity,transmission,fuel components on the
bill. Instead (due to COVID-19),we are looking at a slightly higher fuel adjustment,with an impact Of
approximately$674K;there are currently funds in the fuel reserves to cover that through the end of
the year. Mr.Underhill then reviewed COVID-19 2020 Operating Budget Impacts(Slide 8). If the
assumed 8%reduction holds,the RMLD should be alright financially going forward. Mr.Underhill
concluded his presentation stating staff will continue to monitor the COVID-19 impact on rate and
revenue stability, as outlined on Slide 9(Develop COVID-19 Response Options).
Mr. Hooper asked if there was any state assistance anticipated to relieve the COVID-19 impact to
the RMLD. Ms.O'Brien responded that there is no indication that there would be any kind of
reimbursement to the electric company for the electric usage rate;there may be stimulus packages
to customers to help them pay their bills. Ms.O'Brien noted that staff is tracking all data on
expenses(material and labor)related to COVID-19 should any state or federal programs become
available through MEMA,FEMA,etc.
Home Information Sessions: Mr. Underhill reported that successful sessions were held in Lynnfield
and Wilmington prior to COVID-19 restrictions. Staff is looking at various options to continue
hosting the sessions virtually.
New Rebate Programs: Mr.Underhill reported that Integrated Resources(IR)has launched the
heat pump program and will soon be offering incentive rebates for consumer purchase of electric
yard maintenance equipment(mowers,trimmers,etc.). IR is also working to modify the audit
program to a virtual mechanism.
4. Engineering&Operations Report—H.Jaffari,Director of Engineering&Operations
Materials: Engineering&Operations Report:WR/OMS Update(Presentation Slides)
Metering Project/Customer Notification System: Phase l&R Implementation: Mr.Jaffarl updated
the CAB on the status of the Integrated Voice Response/Outage Management System(IVR/OMS),
and the Customer Notification System(CNS),which are being rolled out in two phases. Phase 1
includes IVR/OMS rollout,which will be used for unplanned outages;Phase It includes the CNS for
planned outages. Mr.Jaffari reviewed the Slides 2-5,which outline each phase and how the
systems will work. RMLD will conduct a"Customer Opt-in Campaign"for customers to enroll in the
notification programs as outlined on the timellne(Slide 6). Mr.Jaffari then reviewed Slide 7,which
shows the RMLD system map(SCADA/OMS)for outages and the customer portal map for outages,
which will be available on personal devices and through the RMLD website. Mr.Jaffari completed
his presentation with a review of system communication mapping as outlined an Slide 8.
S. CAB Input on Town of Reading Payment—D.Kelley,Chair
Materials: RMLD Payment Scenarios to the Town of Reading
Ms.O'Brien reported that Ms. Markiewla had reformatted the outline of current recommendations
for the Town payment(provided with the Agenda packet)so that it is easier to read. The
information contained in this document has already been presented to the Board and has been
posted on the RMLD website. Ms.Markiewicz then provided a brief overview of the current
recommendations included on the document,noting the second page shows the rolling average for
three years based on the five scenarios. Ms.Markiewicz stated,as we said before,the RMLD Is not
trying to cause a burden to the Town of Reading,but also wants to safeguard the below the line
funds for capital improvements and to keep rates competitive;R all must be balanced. Ms.
Markiewicz noted,the Town has provided alternate scenarios,but RMLD wants to remain true to
Page 1 3
the original idea of going based off the health of the industry,which is kilowatt hour sales. Ms.
Markiewicz noted that five scenarios have been presented with 3.75 mil per kilowatt hour sales or
4.0 mil per kilowatt hour sales.
Mr.Soni asked about the impact of COVID-19 on both the above the line and below the line
payments this year and possibly next year;should RMLD consider whether the$2.4m would be
appropriate in such a setting? If WILD is not doing certain capital investments,would the net plant
change in the next couple of years,and how would that impact the above the line and below the
line payments? Ms. Markiewicz responded that If there is a serious impact from COVID-19,the
RMLD would move to supplement with the rate stabilization funds;this is a crisis situation,outside
of the norm. The RMLD can shift priorities and look at different options. Mr.Soni summarized:
because of the rate stabilization and the fuel stabilization fund you are able to accommodate the
loss of revenue without Increasing rates and honor the payments to all the towns at the same level,
approximately. Ms. Markiewicz responded that at this particular moment(for 2020)she would say
yes.
Ms.O'Brien noted that the recommendations were developed prior to COVID-19 and represent a
recommendation for a long-term formula. The COVID-19 impact(a catastrophe/crisis event)would
need to be addressed separately. Ms.O'Brien stated that she would like to have a discussion at the
next Board of Commissioners meeting regarding the COVID-19 impact on the budget,both above
the line and below,and the payments to the towns. If the Board of Commissioners were to
determine that the payments needed to be adjusted due to any catastrophe,that would have to
come from the Board.
Chair Kelley asked if there were any other comments or concerns.
Mr.Small stated that(based on the options presented)he would be inclined to go with a three-year
average. If there were minor fluctuations in sales in some years,it averages out and minimizes the
overall financial Impact to RMLD and the Town. The three-year average may be a good way to ride
out some intermittent bumps. Chair Kelley agreed. Mr.Hooper agreed and stated that he would
prefer the 3.75 option. Mr.Small agreed the 3.75 would be better for the health of the RMLD.
Ms.O'Brien agreed to summarize the discussion for Mr.Hennessey to present to the Board.
6. Scheduling: CAB Meetings&Commissioners Meetings Coverage—D. Kelley,Chair
Mr.Soni agreed to cover the April 21"Board of Commissioners meeting.
The May meeting was tentatively scheduled for May 21"(pending confirmation of May Board of
Commissioners meeting). Mr. Hooper agreed to cover the May Board of Commissioners meeting.
7. Adjournment—D. Kelley,Chair
Mr.Hooper made a motion to adjourn the Citizens'Advisory Board meeting,seconded by Mr.Small.
Motion carried 5:0:0(5 in favor,0 opposed,0 absent).
The CAB meeting adjourned 8:16 PM.
As approved September 16,2020
Page 14
Town of Reading
0 Meeting Minutes
Board - Committee - Commission - Council:
RMLD Citizens Advisory Board
Date: 2020-04-16 Time: 6:30 PM
Building: Location:
Address: Session: Open Session
Purpose: General Business Version: Final
Attendees: Members - Present:
Mr. Dennis Kelley, Chair (Wilmington Representative); Mr. Jason Small, Vice
Chair (North Reading Representative); Mr. George Hooper, Secretary
(Wilmington Representative); Mr. Joseph Markey (Lynnfield Representative);
Mr. Vivek Soni (Reading Representative)
Members- Not Present:
Others Present:
Mr. David Hennessy, Board of Commissioners
Ms. Coleen O'Brien, Mr. Hamid laffari, Ms. Wendy Markiewicz, Mr. John
McDonagh, Ms. Kathleen Rybak, Mr. Charles Underhill
Minutes Respectfully submitted By: Mr. George Hooper, Secretary
AF
Topics of Discussion:
PER GOVERNOR BAKER'S MARCH 10, 2020, ORDER SUSPENDING CERTAIN PROVISIONS OF THE
OPEN MEETING LAW,G.L. c. 30A, §20 THIS MEETING WAS HELD REMOTELY VIA ZOOM.
1. Call Meeting to Order and Introductions-D.Kelly,Chair
Chair Kelley called the meeting to order at 6:30 PM and noted the meeting was being audio
recorded.
2. General Manager's Update-C.O'Brien,General Manager
Materials: COVID-19 Emergency Plan of Operations&Major Emergency Plan of Operation
(Presentation Slides)
Ms.O'Brien welcomed Mr.Joseph Markey the Lynnfield Representative. Mr.Markey provided a
brief overview of his background.
COVID49 Update: Ms.O'Brien reported that In response to the COVID-19 crisis,the RMLD
immediately organized an emergency response team consisting of eight senior staff(Directors and
Assistant Directors);this group meets daily at 10:00 AM. Ms.O'Brien noted that the DPU extended
the moratorium for residential shutoffs. The RML)has an obligation to serve and to maintain
certain levels of construction and reliability to the electric system. Staff are working with local and
national peer groups,and continually reviewing federal,state,and local guidelines to determine
Pape 1 I
best practices.The RMLD has developed EDP 20-03 Emergency Infectious Disease Plan,a living
procedure with linked updates from the Governor,Board of Health,and local Incident Command.
Ms.O'Brien reviewed the presentation slides, noting RMLD Is currently in Phase II of the Emergency
Plan of Operations.
Ms.O'Brien asked Mr.McDonagh to update the CAB on the response to the recent storm(on April
13)and to provide an overview of restoration operations. RMLD had roughly 3,900 customers
interrupted during the storm and responded to over 40 calls. Most services were restored within
the first 24 hours,with restoration for damage to single electric services continuing thereafter. All
service has now been restored.
Ms.O'Brien reported that the Wilmington Board of Selectmen voted to approve the extension of
the 20-year Agreement,and thanked Mr.Hooper and Mr. Kelley for their assistance with the
process. Ms.O'Brien noted that letters went out to each town regarding the extension and
responses are due back to RMLD by May 310.
3. Integrated Resources Report—C. Underhill,Director of Integrated Resources
Materials: RMLD COVID-19 Virus Impact Assessment(Presentation Slides)
COVID-19 Load Impact Discussion: Mr.Underhill reported that staff is working to identify what the
impacts of COVID-19 might be on RMLD's financlaI situation and what appropriate responses that
would engender. Mr.Underhill noted staff is assessing changes both externally and internally(as
outlined on Slide 2),looking at load changes,fixed operating expenses and how the capital budget
may evolve overtime.
Mr. Underhill then reviewed the COVID-19 Load Impacts on RMLD(Slide 3)noting that staff used
estimates of what other utilities within high COVID-19 risk areas are/have experiencing/ed;RMLD
does not have enough data to generate RMLD estimates at this time;collections remain steady to
date. Mr. Underhill noted that staff has looked at the COVID-19 load impact on the power supply
budget,and projected(with the lower load and our contractual commitments)through the end of
2020. The RMLD is(currently)assuming a straight 8%load reduction for the remainder of 2020 and
a straight reduction in peak values for transmission savings. RMLD will not we an impact to
capacity for another year. Mr.Underhill reviewed the RMLD Monthly kWh Load Comparison(Slide
4),which shows historic values from 2018,2019,and the 2020 budgeted value. Mr.Underhill noted
2020 actual year-to-date(through March)is below budget due primarily to the warmer than
expected winter that significantly reduced the wholesale load. Mr.Underhill then reviewed the
Assumptions(Slide 5)used(with the 2020 budget as a baseline)to understand cash reserves and
how much revenue erosion RMLD could support overtime. Staff has been in touch with Nextera
(one of our larger energy suppliers)as one of the phase contingencies to discuss the potential of a
deferment of some power supply expenses.
Mr.Underhill continued with a review of Slide 6(Assess Impacts). Mr. Underhill noted the RMLD
has suspended some programs related to appropriate social distancing and in-home inspections and
will be modifying some programs,i.e.,the residential audit program,inspections on efficiency
installations at commercial and industrial sites;distributed generation has slowed dramatically. Mr.
Underhill stated that staff will monitor programs so that RMLD can continue to deliver programs and
services.
Slide 7(COVID-19 2020 Power Supply Impacts)reflects an^'$2.1 reduction in power supply expense.
Mr. Underhill noted the rate goes up rather than down because the kilowatt hours in the load
dropped faster than the price. Mr. Underhill pointed out a typo(on"Power Supply Budget Q2-Q4
2020);the 1.035 is the 3.5%distribution losses that RM LD experienced,so it converts it from a
P.w1t
wholesale load to anticipated retail sales. At retail,the power supply portfolio cost would be at
$0.8560;with the COVID-19 adjusted budget It is at$0.08876. For the remainder of the year we had
anticipated a reduction in the purchase power,and rapacity,transmission,fuel components on the
bill. Instead(due to COVID-19),we are looking at a slightly higher fuel adjustment,with an impact of
approximately 5674K;there are currently funds in the fuel reserves to cover that through the end of
the year. Mr.Underhill then reviewed COVID-19 2020 Operating Budget Impacts(Slide B). If the
assumed 8%reduction holds,the RMLD should be alright financially going forward. Mr.Underhill
concluded his presentation stating staff will continue to monitor the COVID-19 impact on rate and
revenue stability,as outlined an Slide 9(Develop COVID-19 Response Options).
Mr.Hooper asked if there was any state assistance anticipated to relieve the COVID-19 impact to
the RMLD. Ms.O'Brien responded that there is no indication that there would be any kind of
reimbursement to the electric company for the electric usage rate;there may be stimulus packages
to customers to help them pay their bills. Ms.O'Brien noted that staff is tracking all data on
expenses(material and labor)related to COVID-19 should any state or federal programs become
available through MEMA,FEMA,etc.
Nome Information Sesslons: Mr.Underhill reported that successful sessions were held in Lynnfield
and Wilmington prior to COVID-19 restrictions. Staff is looking at various options to continue
hosting the sessions virtually.
New Rebate Programs: Mr.Underhill reported that Integrated Resources(IR)has launched the
heat pump program and will soon be offering incentive rebates for consumer purchase of electric
yard maintenance equipment(mowers,trimmers,etc.). IR is also working to modify the audit
program to a virtual mechanism.
4. Engineering&Operations Report—H.Jaffari,Director of Engineering&Operations
Materials: Engineering&Operations Report:IVR/OMS Update(Presentation Slides)
Metering Project/Customer NotiAtation System: Phasel&Illmplementation: MrAaffari updated
the CAB on the status of the Integrated Voice Response/Outage Management System(IVR/OMS),
and the Customer Notification System(CNS),which are being rolled out in two phases. Phase 1
Includes IVR/OMS rollout,which will be used for unplanned outages;Phase II includes the CNS for
planned outages. Mr.Jaffari reviewed the Slides 2-5,which outline each phase and how the
systems will work. RMLD will conduct a"Customer Opt-in Campaign"for customers to enmll in the
notification programs as outlined on the timellne(Slide 61. Mr.Jaffari then reviewed Slide 7,which
shows the RMLD system map(SCADA/OMS)for outages and the customer portal map for outages,
which will be available on personal devices and through the RMLD website. Mr.Jaffari completed
his presentation with a review of system communication mapping as outlined on Slide 8.
S. CAB Input on Town of Reading Payment—D.Kelley,Chair
Materials: RMLD Payment Scenarios to the Town of Reading
Ms.O'Brien reported that Ms.Markiewicz had reformatted the outline of current recommendations
for the Town payment(provided with the Agenda packet)so that it is easier to read. The
information contained in this document has already been presented to the Board and has been
posted on the RMLD website. Ms.Markiewicz then provided a brlefoverview of the current
recommendations included on the document,noting the second page shows the rolling average for
three years based on the five scenarios. Ms.Markiewia stated,as we said before,the RMLD is not
trying to cause a burden to the Town of Reading,but also wants to safeguard the below the line
funds for capital improvements and to keep rates competitive;It all must be balanced. Ms.
Markiewicz noted,the Town has provided aftemate scenarios,but RMLD wants to remain true to
Page 13
the original Idea of going based off the health of the industry,which is kilowatt hour sales. Ms.
Markiewicz noted that five scenarios have been presented with 3.75 mil per kilowatt hour sales or
4.0 mil per kilowatt hour sales.
Mr.Soni asked about the impact of COVID-19 on both the above the line and below the line
payments this year and possibly next year;should RMLD consider whether the$2.4m would be
appropriate in such a setting? If WILD is not doing certain capital investments,would the net plant
change in the next couple of years,and how would that Impact the above the line and below the
line payments? Ms. Markiewicz responded that if there is a serious impact from COVID-19,the
RMLD would move to supplement with the rate stabilization funds;this is a crisis situation,outside
of the norm. The RMLD can shift priorities and look at different options. Mr.Soni summarized:
because of the rate stabilization and the fuel stabilization fund you are able to accommodate the
loss of revenue without increasing rates and honor the payments to all the towns at the same level,
approximately. Ms.Markiewicz responded that at this particular moment(for 2020)she would say
yes.
Ms.O'Brien noted that the recommendations were developed prior to COVID-19 and represent a
recommendation for a long-term formula. The COVID-19 impact(a catastrophe/crisis event)would
need to be addressed separately. Ms.O'Brien stated that she would like to have a discussion at the
next Board of Commissioners meeting regarding the COVID-19 impact on the budget,both above
the line and below,and the payments to the towns. If the Board of Commissioners were to
determine that the payments needed to be adjusted due to any catastrophe,that would have to
come from the Board.
Chair Kelley asked If there were any other comments or concerns.
Mr.Small stated that(based on the options presented)he would be inclined to go with a three-year
average. If there were minor fluctuations in sales In some years,it averages out and minimizes the
overall financial Impact to RMLD and the Town. The three-year average may be a good way to ride
out some intermittent bumps. Chair Kelley agreed. Mr. Hooper agreed and stated that he would
prefer the 3.75 option. Mr.Small agreed the 3.75 would be better for the health of the RMLD.
Ms.O'Brien agreed to summarize the discussion for Mr.Hennessey to present to the Board.
6. Scheduling: CAB Meetings&Commissioners Meetings Coverage—D. Kelley,Chair
Mr.Soni agreed to cover the April 21fz Board of Commissioners meeting.
The May meeting was tentatively scheduled for May 21°(pending confirmation of May Board of
Commissioners meeting). Mr. Hooper agreed to cover the May Board of Commissioners meeting.
7. Adjournment—D.Kelley,Chair
Mr. Hooper made a motion to adjourn the Citizens'Advisory Board meeting,seconded by Mr.Small.
Motion carried 5:0:0(5 in favor,0 opposed,0 absent).
The CAB meeting adjourned 8:16 PM.
As approved September 16,2020
Page 14