HomeMy WebLinkAbout2021-08-12 RMLD Board of Commissioners MinutesTOWNEIVED
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0 Meeting Minutes2021 NOV 22 AM g: 39
Board - Committee - Commission - Council:
RMLD Board of Commissioners
Date: 2021-08-12
Time: 6:30 PM
Building:
Location:
Address:
Session: Open Session
Purpose:
Version: Final
Attendees: Members - Present:
Mr. Robert Coulter, Chair; Mr. Philip Pacino, Vice Chair; Mr. John Stempeck,
Commissioner; Mr. David Talbot, Commissioner; Ms. Marlena Bita,
Commissioner
Members - Not Present:
Others Present
CitizensAdvisory Board: Mr. Jason Small, Chair (North Reading); Mr. Vivek
Soni, Vice Chair, (Reading); Mr. Dennis Kelley (Wilmington)
RMLD Staff: Ms. Colleen O'Brien, General Manager; Mr. Greg Phipps, Director
of Integrated Resources; Ms. Wendy Markiewicz, Director of Business
Finance; Mr. Hamid Jaffan, Director of Engineering and Operations; Ms,
Erica Morse, Executive Assistant
RMLD Board Liaisons: Ms. Karen Herrick, Select Board, Reading
Public: Mr. Mike Monahan Reading, Massachusetts.
Minutes Respectfully Submitted By: Philip Pacino, Secretary Pro Tem
Topics of Discussion:
JOINT MEETING OF THE RMLD BOARD OF COMMISSIONERS AND CITIZENS' ADVISORY
BOARD
1. Call Meeting to Order
Chair Small called the Citizens' Advisory Board meeting to order at 6:30PM.
Chair Coulter called the Board of Commissioner' meeting to order at 6:31 PM
and announced that the meeting would be held on Zoom and live on RCN and
YouTube
Opening Remarks
Chair Coulter read RMLD's code of conduct.
Vice Chair Pacino served as the Secretary for the meeting.
Introductions
Chair Coulter welcomed everyone to the meeting of the RMLD Board of Commissioners and
asked all attendees to identify themselves.
Page I 1
2. Public Comment
Citizens' Advisory Board
Chair Small stated there is no comment from the Citizens' Advisory Board.
Liaisons to RMLD Board
No Liaisons to the RMLD Board spoke at this meeting.
Public Comment
Mr. Monahan identified himself and stated his address, Mr. Monahan asked that the rate
increase for a green initiative be addressed, and if this was going to be opt -in or opt -out.
Mr. Monahan stated that he strongly opposes an opt -out feature and encourages the Board
to make the program opt -in. Chair Coulter responded that the matter is still under
discussion and there is no decision at this point.
Mr. Monahan noted that the RMLD Board meeting minutes have not been published since
February 2021, however tonight's agenda does include the minutes from March and April
2021. Mr. Monahan addressed the concern of open meeting law and encourage the Board to
be timelier with publishing minutes.
Vice Chair Pacino made a statement under Public Comment, bringing attention to the UN
Climate Change Report which was released earlier in the week.
3. Approval of Board Minutes
Vice Chair Pacino stated that he appreciates the public input on the meeting minutes, and
as secretary, he is getting to them as fast as possible, despite length and software
challenges.
Board Of Commissioners Motion: Vice Chair Pacino made a motion, seconded by Mr.
Stempeck, that the Board of Commissioners approve the meeting minutes of the March 18,
2021, and April 22, 2021, meetings on the recommendation of the General Manager.
Motion Passed: 5:0:0
Roll Call: Vice Chair Pacino, Mr. Stempeck, Aye; Aye; Mr. Talbot, Aye: Ms. Bita, Aye; Chair
Coulter, Aye.
4. Anil Report Confrmation
Mr. Phipps presented the revised CY20 Annual Report with changes demonstrated in two
text pages and three graph pages.
Mr. Phipps reported on the changes made to Power Supply, Climate Bill Compliance (page
17). The graph now distinguishes the non -carbon resources that were retired (nuclear and
hydro), and the certificates that were sold in CY20.In CY20, 22% of certificates were
retired, which exceeds the 20% climate bill target. Sold certificates do not count toward
Climate Bill compliance.
Mr. Phipps reported on Transaction by Source (page 18). The graph demonstrates the same
transaction data but was modified to segregate certificate status between retired (solid
color) and sold (hashed). Mr. Phipps noted that the green line on the graph represents
RMLD's annualized Climate Bill targets and 3% annual increases in non -carbon certificate
retirement.
The table titles on Power Supply Contract 2020 (page 19) were updated to identify the
specific source, now stating "Hydro & Nuclear Sources", "Solar and Wind Sources", and
"Mixed Sources"
Mr. Talbot stated that the report revision is a more accurate statement of what the RMLD's
power supply is, net of REC sales. Mr. Talbot further stated that even with the modifications
Page 11
he feels that the Annual Report is still misleading and cited the example of hydro being sold
as a source.
Discussion ensued on the communication aspect of the revision process, and on the
appropriateness of feedback and sharing of documents prior to meetings based on Open
Meeting Law.
Board Of Commissioners Motion: Vice Chair Pacino made a motion, seconded by Mr.
Stempeck, that the Board of Commissioners approve the Annual Report for CY20 as
presented, on the recommendation of the General Manager.
Motion Passed: 3:0:2 (3 in favor, 0 opposed, 2 abstained)
Roll call: Vice Chair Pacino, Aye; Ms. Bits, Abstain, Mr. Stempeck, Aye; Mr. Talbot, Abstain;
Chair Coulter, Aye.
S.
Materials: Board Packet; Attachment 3
Ms. O'Brien spoke on the timeline of the rates presentation, which will span over the next
few meetings. Ms. O'Brien noted that although the agenda contains motions for the CAB and
Board to vote, the CAB has based on the 20 -year Agreement, 30 days to vote to
recommend the rates.
Mr. Phipps reported on the Initial Rates Discussion and Recommendations as follows:
Class Cost of Service Study Results Summary (slide 3)
The class cost of service study is complete, the results of the study are highlighted on slide
3. The results are based on significant analysis by an outside consultant, PLM, and RMLD.
Mr. Phipps noted that the key takeaways are as follows: The rates are in the normal context
of prompting any adjustment of cost allocations and the results are incorporated into the
RMLD's rate recommendations.
Rates Overview (slide 4)
Mr. Phipps identified the goals of RMLD's rate design. Overall, the rates are designed to
cover the cost of providing service with the intention to allocate cost fairly across rate
classes. RMLD rates must comply with DPU, statutory, and RMLD policies. Mr. Phipps noted
that since 2008, rates have provided funds for efficiency and electrification incentives. The
customer survey results prompted the RMLD to offer customers a better understanding and
control of energy use.
Desired Outcomes (side 5)
The proposed rates which were designed around the following:
Electrification - The proposed A3 Rate is intended to encourage EV adoption by providing an
additional rate -based incentive that targets residential. This additional incentive is made to
encourage customers to consider purchasing an EV when buying a new vehicle and allow
Time of use charging.
Generation - Mr. Phipps noted the importance of increasing generation within RMLD's
territory, as the kWhs generated in RMLD territory are not subject to capacity and
transmission costs. 40% of RMLD's costs are attributed to rapacity and transmission.
Hence, increasing generation within RMLD territory reduces those costs. Currently, solar is
the primary generation source available within RMLD territory.
Customer Control - Rates are also intended to offer customers motivation to adjust their
energy use in magnitude and timing. For example, the A3 rate works to prompt load shifts
away from the afternoon peak hours and is structured to encourage EV charging overnight
where there is open capacity and labor demand on the RMLD electric system.
N,g 1 3
Load Forecast
The load forecast acts as the foundation for the rate structure, analysis, and
recommendation process. Residential is the largest class and is also the fastest growing.
Hence, residential requires higher relative investment.
Summary rate classes — 2022 example (slide 7)
Mr. Phipps highlighted the three primary rate classes. The residential rate class is larger,
grows faster, produces higher revenues, and covers more geography. These attributes tie
into the presented rates, as the residential rate class requires a larger network investment
moving forward. Mr. Phipps noted the importance of the average rate $/kWh as represented
on slide 7.
Solar Incentive for Residential, Smaller C&I (slide 8)
The solar incentive will be mainly used by residential and smaller C&I. Mr. Phipps provided
background on the DOER matching grant which the RMLD took advantage of, in addition to
the current incentive through June 2021 when funds were depleted. The RMLD plans to
continue the existing program that pays $1,200 per KW installed, by replacing the DOER
match with RMLD EEC funds. The action plan and importance of battery storage in relation
to solar system was discussed.
Efficiency Electrification Charge (EEC formerly ECC) (slide 9)
Energy Conservation Reserve Transfer
Mr. Phipps spoke on the scope of the various RMLD incentives both residential and
commercial. The residential heat pump incentive has been extremely successful and is
forecasted to account for 40% of the total incentive expenses in CY22. Due to the success
and growth of the programs, the RMLD is seeing a funds deficit with the current EEC rate.
The RMLD recommendation will allow the RMLD to continue the programs that support the
goal of electrification and decarbonization.
The incentive charge increase is applied across all rate classes equally, and all classes can
participate in the various incentives. The increase to the typical residential bill is $1.64
(1.4% increase). Mr. Phipps noted that most MLPs do not break out an EEC charge, and if
they do, it is around 0.002 per kWh, and IOUs are $0.0017 per kWh or 6X the propose
RMLD rate.
Mr. Talbot asked a question on proposed rebates and efficiency. Mr. Phipps responded that
the RMLD has a broad set of incentives and cited examples of yard tools and panel
upgrades. Regarding efficiency, Mr. Phipps cited the example of increasing equipment
efficiency -level required to qualify for a rebate; further information regarding this topic can
be found on RMLD's website.
Mr. Soni asked a question regarding incentives; Mr. Phipps responded that currently there is
no limit on what the RMLD could put out for incentives, but each program has limits of
payout magnitude frequency of eligibility, based on approved sales and budget.
Chair Coulter asked a question regarding the DOER solar matching fund; Mr. Phipps
responded that if the DOER resumed the matching fund the RMLD would keep the program
total at $1200 per KW and would decrease the Department's contribution to align with the
DOER's fund. Chair Coulter asked a fallow up question regarding customer sell back; Mr.
Phipps responded that any sales that come back are bought only by RMLD.
Board of Commissioners Motion: Vice Chair Pacino made a motion, seconded by Mr.
Stempeck, that the Board of Commissioners vote to approve a transfer of funds from the
Unrestricted Operating Fund to the Energy Conservation Reserve by September 30, 2021.
Motion Passed: 5:0:0 (5 in favor; 0 opposed)
Roll Call: Vice Chair Pacino, Aye; Mr. Stempeck, Aye; Mr. Talbot, Aye; Ms. Bita, Aye. Chair
Coulter was absent during the vote due to technical difficulties and later recorded his vote
as "aye".
Page 14
EEC
Mr. Phipps stated that the RMLD is proposing to change the name of the Energy
Conservation Charge to the Efficiency Electrification Charge, which reflects the industry
trend in electrification and to increase the rate from 0.001 to 0.003 per kWh across all rate
classes. It was noted that the CAB can take 30 days to consider the EEC motion before
taking a vote to replace MDPU 208 with MDPU 292.
The Citizens' Advisory Motion as required under the 20 year agreement was as follows:
Mr. Soni made a motion, seconded by Mr. Kelley, that the Citizens' Advisory Board
recommend that the Board of Commissioners vote to accept the General Manager's
recommendation to replace the current MDPU 208 rate with MDPU 292, Efficiency
Electrification Charge (EEC), effective on billing on or after January 1, 2022.
Motion Passed: 3:0:1 (3 in favor; 0 opposed; 1 absent)
Roll call: Mr. Soni, Aye; Mr. Kelley, Aye; Mr. Small, Aye. Mr. Hooper was absent from the
meeting.
Board Of Commissioners Motion: Vice Chair Pacino made a motion, seconded by Mr.
Stempeck, that the Board of Commissioners, on the recommendation of the Citizens'
Advisory Board, vote to accept the General Manager's recommendation to replace the
current MDPU 208 rate with MDPU 292, Efficiency Electrification Charge (EEC), effective on
billings on or after January 1, 2022.
Motion Passed: 5:0:0. (S passed; 0 opposed)
Roll call: Vice Chair Pacino, Aye; Mr. Stempeck, Aye; Mr. Talbot, Aye; Ms. Bita, Aye; Chair
Coulter, Aye.
New Residential Time -of-Use rate - EV focused (slide 10)
Mr. Phipps reported on the RMLD's recommendation for a new residential A3 Time -of -Use
Rate. The intention of the proposed A3 rate is to encourage more electric vehicle adoption
in the RMLD territory by offering a more substantial fuel savings incentive and to increase
awareness through education. Mr. Phipps referenced the chart on slide 10, which provides
a snapshot of residential hourly load by month. The RMLD network is configured to handle
the maximum peak load at any hour; the middle of the night has more open capacity than
afternoon (load peaks). This rate structure offers three 8 -hour periods designed to
discourage EV charging during afternoon peak hours and encourage charging overnight to
fill the network capacity. The A3 rate will offer a pricing structure as follows: highly
discounted overnight, moderately discounted before afternoon peak, and premium during
afternoon peak hours. Even if a customer does not have an EV, they can join the A3 rate.
Mr. Stempeck asked if there is a timer associated with the EV rate. Mr. Phipps responded
that the timer is built into the vehicles not the RMLD system; most electric vehicles can be
set up to always start or end charging at a certain time. Mr. Stempeck asked a question
about wall -mount battery units. Mr. Phipps responded that it is possible for customers to
use wall mount battery units.
Mr. Talbot asked a question regarding the increase that customers may experience with the
proposed A3 rate during the afternoon hours; discussion followed on the concept and
operational feasibility of second meters. Mr. Phipps reported that the A3 rate is predicted to
work well and will be fine-tuned accordingly.
Vice Chair Pacino asked a question on public charging stations; Mr. Phipps responded that
the A3 rate applies to residential only, but the RMLD will propose a different rate in the
future for public chargers.
Ms. Bita asked a question on Communicating the new A3 rate. Mr. Phipps responded that
the RMLD will do a marketing communication when the A3 rate is released and will be as
broad as possible with all communications to drive customer awareness and education.
Mr. Talbot asked if the RMLD was losing money with the overnight discount; Mr. Phipps
responded no.
Page 1 5
Mr. Kelly asked a question to Mr. Talbot; would the average person who has a long
commute and does a lot of driving at night benefit from this rate and overnight charging?
Mr. Talbot responded yes; this is a good rate.
Mr. Small asked a follow up question on daytime electric use on the proposed A3 rate. Mr.
Talbot responded that customers who use most of their electricity during the day could stay
on the current A2 rate if it fits their needs more appropriately.
Discussion ensued regarding a four-hour charging period with a level It EV charger and the
benefit of the A3 rate.
Mr. Small asked a question on the length of the rate; Mr. Phipps responded that the
intention is to have a minimum one-year commitment with the A3 rate.
The Citizens' Advisory Motion as required under the 20 year agreement was as follows:
Mr. Soni made the motion, seconded by Mr. Kelly, to move that the Citizens' Advisory
Board recommend that the Board of Commissioners vote to accept the General Manager's
recommendation to establish a new Residential Time -of -Use Schedule A3 Rate, effective on
billings on or after January 1, 2022, per the MDPU 293 rate sheet.
Motion Passed: 3:0:0 (3 in favor; 0 opposed; 1 absent)
-I call: Mr. Soni, Aye; Mr. Kelley, Aye; Mr. Small, Aye, Mr. Hooper was absent from the
meeting.
Board Of Commissioners Motion: Vice Chair Pacino made a motion, seconded by Mr.
Talbot, to move that the Board of Commissioners, on the recommendation of the Citizens'
Advisory Board, vote to accept the General Manager's recommendation to establish a new
Time -of -Use Schedule A3 Rate, effective on billings on or after January 1st, 2022, per the
MDPU 293 rate sheet.
Motion Passed: 5:0:0 (5 in favor; 0 opposed)
Roll call: Vice Chair Pacino, Aye; Mr. Stempeck, Aye; Mr. Talbot, Aye; Ms. Bita, Aye; Chair
Coulter, Aye.
Renewable Choice 2022 (slide 11)
The RMLD made a recommendation, based on prior meeting feedback, to implement one
program called "Renewable Choice" with different level options.
The program would become effective in 2022. The RMLD will move from retiring 23% of
certificates to 26% which all rate payers will be participating in next year. Within the
proposed Renewable Choice program, the Department is recommending a 50% option, a
75% option, and a 100% option. Mr. Phipps noted that the certificates mint over a 6 -month
period and there is a lot of variability in certificate cost.
The program will be structured as follows: The RMLD will create fund for the charges
collected and those funds will be used to retire the most valuable certificates from the top
down on a quarterly basis.
Mr. Phipps stated that the department is recommending an opt -in program with a minimum
commitment of one year. Mr. Phipps discussed the 2022 example scenario for the average
residential customer as outlined in the chart on slide 11.
Vice Chair Pacino asked a question on the 26%, to which Mr. Phipps responded that the
26% comes from the Policy 30 revision and Climate Bill Requirements. To reach 50% non-
carbon by 2050, while simultaneously avoiding rate shock; 3% annual inclusive of certificate
retirements. Thus, in 2021 the RMLD will be retiring 23% of certificates and in 2022 that will
increase to 26%.
Vice Chair Pacino stated that he has concerns with the opt -in program, as not a lot of people
tend to opt -in. Ms. Bita stated that the Wellesley Board and Wellesley General Manager
Page 1 6
stated that they're program was rolled out on July 1 and has a 94% participation rate. It is a
successful opt -out program so far,
Mr. Phipps compared the RMLD recommended program with the Wellesley "We Care"
program which primarily funds projects; in contrast, the RMLD program will focus solely on
certificate retirement.
Mr. Soni made a comment on the display of information relating to the increased cost per
household. Mr. Phipps responded that the increase to the customer bill is tied to the
customer's kWh and referenced the 2022 example scenario on slide 11.
Ms. O'Brien clarified that the additional annual 3°/a certificate retirement charge goal
adjustment is a fixed charge that already goes above and beyond the climate bill. This is
essentially not an opt in or opt out, it is a fixed charge above the Climate Bill requirements.
No rate pater can opt out. The proposed Renewable Choice program is in addition to the
approved annual 3% certificate requirement increase beyond the Climate Bill.
Mr. Stempeck stated that the opt -out is unfair to customers and what the RMLD is proposing
is appropriate and fair.
Mr. Talbot stated that he believes the proposed rate is fair and the program is excellent. Mr.
Talbot suggested that in the future we can investigate a sponsor your neighbor, or buddy
system.
Ms. Bita asked about the participation levels of other towns; Mr. Phipps responded that he
did not yet have that information.
Vice Chair Pacino noted that he would like to see the lowest level (50%) be an opt -out or
hybrid method and asked if the program could be reviewed six months in.
Chair Coulter stated that he is in favor of an opt -in program and an 8% increase (slide 11)
would be too significant for rate payers.
Discussion ensued regarding the possibility of a hybrid option and the impact of increased
rates on rate payers, especially after the impacts of COVID-19. Ms. O'Brien indicated that
the additional 3% fixed annual increase in certificate retirements and the Renewable Choice
is a form of hybrid. Ms. O'Brien suggested that the RMLD team investigate other hybrid
options to be discussed at the next meeting.
The Citizens' Advisory Board and Board of Commissioners agreed to address the Renewable
Choice Program at the September meeting, where Mr. Phipps will provide additional
information and updates.
6. Schedullno
The next joint meeting of the RMLD Board and the Citizens' Advisory Board will be held on
September 23, 2021, at 6:30PM. Ms. Bita will cover the CAB meeting in October.
Mr. Small noted that Ms. Rybak will schedule the October meeting with the CAB separately.
7. Adioumment
Citizens' Advisory Motion: Mr. Kelley made a motion, seconded by Mr. Soni, that the
Citizens' Advisory Board adjourn. The meeting adjourned at 7:29 PM.
Motion Passed: 3:0:0 (3 in favor; 0 opposed)
Roll Call: Mr. Soni, Aye; Mr. Kelley, Aye; Mr. Small, Aye. Mr. Hooper was absent from the
meeting.
Page 1 7
Board Of Commissioners Motion: Vice Chair Pacino made a motion, seconded by Mr,
Stempeck, that the Board of Commissioners adjourn the meeting. The meeting adjourned
at 7:29 PM
Motion Passed: 5:0:0 (S in favor; 0 opposed)
Roll C : Vice Chair Pacino, Aye; Mr. Stempeck, Aye; Mr. Talbot, Aye, Ms, Bita, Aye; Chair
Coulter, Aye.
A true copy of the RMLD Board of Commissioners minutes
as approved by a majority of the Commission.
r%G%� 8 �aG%hO
PNl, uno Nov 10, 101115:36 E4)
Philp B. Pacino, Secretary Pro Tem
RMLD Board of Commissioners
Page 18
READING MUNICIPAL
LIGHT DEPARTMENT
BOARD OF COMMISSIONERS MEETING
REGULAR SESSION
THURSDAY, AUGUST 12, 2021
ATTACHMENT 1
APPROVAL OF BOARD MINUTES
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Town of Reading
00
Meeting Minutes
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�JJ'IMO�
Board - Committee - Commission - Council:
RMLD Board of Commissioners
Date: 2021-03-18
Time: 7:30 PM
Building:
Location:
Address:
Session: Open Session
Purpose: General Business
Version: Draft
Attendees: Members - Present:
Mr. John Stempeck, Chair; Mr. David Hennessy, Vice Chair; Mr. Philip B.
Pacino, Commissioner; Mr. David Talbot, Commissioner; Mr. Robert Coulter,
Commissioner
Members - Not Present:
Others Present:
RMLD Staff: Ms. Coleen O'Brien, General Manager; Mr. Hamid Jaffari,
Director of Engineering and Operations; Mr. Charles Underhill, Director of
Special Project; Mr. Greg Phipps, Director of Integrated Resources; Ms.
Wendy Markiewicz, Director of Business and Finance; Ms. Janet Walsh,
Director of Human Resources; Ms. Kathleen Rybak, Operational Assistant
Engineering and Operations; Ms. Marguerite Quigley, Executive Assisitant -
Temp
Citizens' Advisory Board: Mr. Jason Small, Chair, North Reading
Others: Mr. Bob Connor
Minutes Respectfully Submitted By: Philip B. Pacino, Secretary Pro Tem
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
Chair Stempeck called the meeting to order at 7:33 PM and read RMLD's Code of Conduct.
Chair Stempeck announced that the meeting is being videotaped via Zoom for distribution
to the community television stations in North Reading, Lynnfield, and Wilmington.
Chair Stempeck noted that Mr. Pacino will be the Board Secretary.
2. Public Comment
a. Citizens' Advisory Board/ MILE, BOC Report from CAB Meeting
Mr. Small, CAB Chair had nothing to report on at this time.
Chair Stempeck was the Board representative at the CAB meeting; He reported that
the presentations made by staff were excellent.
Page 1 1
b. Liaisons to RMLD Board
There were no liaisons present.
Public Comment
Chair Stempeck opened public comment.
Mr. Connor asked for clarification on how public comment is addressed at RMLD
Board meetings. Chair Stempeck responded that public comment was changed to the
Select Board format. Public comment was opened at the end of the last meeting due
to the amount of material on the agenda and timing constraints.
3 Approval of Board Minutes
Mr. Pacino made a motion, seconded by Mr. Hennessy, to approve the meeting minutes of
November 19, 2020, December 3, 2020, and December 16, 2020, on the recommendation
of the General Manager.
Roll call vote: Chair Stempeck, Aye; Mr. Hennessy, Aye; Mr. Paclfig; Aye; Mr. Talbot, Aye;
Mr. Coulter, Aye.
Motion carried 5:0:0.
,
Mr. Pacino noted that Mary Ellen O'Neill, former chair cornmissior*,. reminded us that the
Commission was behind on the minutes; a reminder of the importaneii being timely was
sent to a former RMLD staff member. Ms. O'Brien}* „ponded that the is currently up
pra
to date with the minutes and has secured a inscription coniy %' transcribe the
minutes.
4. General Manager's Report - Ms O'Brien GeneratlManaaer
Heat Pumo Webinar
Took place on March 2 and wa6 well attended (12S live participants and 250 views of
the webinar recording). This is being aired: o,@ the coral, nity TV stations.
Annual Report
The RMLD rAport will be out ta7unek winning high school student's
artwork wiThe arG cwttest deadflod• was March 15; 21 students
submitted was inspiring. This
sthe Flfthtlfied high si of student's art. RMLD rewards all students
whosend£hair Stempetk complimented the students' artwork
submission,,_.._.
7:00 pm. Iitfd'tmation will be sent out once formalized.
0
*TWe RMLD is' ing "' assachusetts state grants for EV charging stations at
pyultiple location r bo i! vel twos and threes in Reading and Wilmington. The
appreciates- t the sect Boards provided their authorization. Ms. O'Brien
",'NPhipps atter gd the Board of Library Trustees and obtained their permission.
Wiln has two•ges for consideration.
C. 2 2ial U Town MeetingPresentation
The RML n a calendar year, as result, Ms. O'Brien will present the findings
at the Fall eeting. The presentation details CY20 and highlights year to date.
Subsequently, a will be making a presentation to the remainder of the service
town Select Boards.
5 Review of Policies - Ms. O'Brien. General Manager
Ms. O'Brien sent out a summary table with updates on RMLD policies; a standard three-year
review date mechanism has been implemented.
a. Policy 4: Smokina
Ms. O'Brien stated there are no recommended changes for Policy 4. If any of the laws
change with respect to E cigarettes, vaping, etc. then it will be brought to the Board. Mr.
Coulter asked if new hires are restricted from smoking; is non-smoking the standard.
Ms. O'Brien replied that new hires are required to comply with all RMLD Board policies.
Smoking is not permitted on premises or in trucks.
Page 1 2
Mr. Pacino made a motion, seconded by Mr. Hennessy, that Policy 4: Smoking be
scheduled for the next periodic review without change.
Roll call vote: Mr. Hennessy; Aye, Chair Stempeck, Aye; Mr. Pacino, Aye; Mr. Talbot,
Aye; Mr. Coulter, Aye.
Motion carried 5:0:0.
b. Policy 7Paid Sick Leave
Policy 7 was reviewed for any legal changes; there are no recommended changes.
Mr. Pacino made a motion, seconded by Mr. Hennessy, that Policy 7: Paid Sick Leave, be
scheduled for the next periodic review without change.
Roll call vote: Chair Stempeck, Aye; Mr. Pacino, Aye; Mr. Hennessy, Aye; Mr. Talbot,
Aye; Mr. Coulter, Aye.
Motion carried 5:0:0.
c. rout o: umer rose tm io mens aenen - arta m si rums
Mr. Coulter asked relative to town trustee oversight,"Is it a co ent or independent?
Ms. O'Brien replied it is independent. Mr. Coulter.asked; why -eft this shifted over
with the other pension and benefits? Ms Markil responded t "pis the new trust;
OPEB trust that was recently signed by the Board of Commissioners.rtpine of the legal
language was changed in the policy to reflect proper chairpersons and 6l that the
trust is with the town, and the custodian is the easurer,
Ms. O'Brien explained that the mal change is t�aration of Trust; Mr. Coulter was
not on the Board on Septembei--1�, 2019, wh F was signed. The town will be
submitting this to Pension Reservei'rl estment Trus t••• $RIT), and that is why we had to
recertify for the OPEB.
Before the vote is to the poll% there ne I L4 be one addition of the date of
September 19, 2018, , .{ t paragraph.
016
Mr. Pacino m!nage
motion, konded hy, IMr. Hennessy, that Policy 8: Other Post-
Employmentts 'OPELiability t Fund with the addition of the date
September 19s re�Ymmended in th rst paragraph on the recommendation of
the Gene[al MRoll `s;r peck, Aye; Mr. Pacino, Aye; Mr. Hennessy, Aye; Mr. Talbot,
Aye Co It e.
Mo�b'on carried
d Polkv 12: Readino1 1, nicioal Licht Board Documents Dissemination
changes in Policy 12.
Mr. Pacino i e a mo"n, seconded by Mr. Hennessy, that Policy 12: Reading Municipal
Light Board w Dissemination be scheduled for the next periodic review without
change. n
Roll call vote: Ch' Stempeck, Aye; Mr. Pacino, Aye; Mr. Hennessy, Aye; Mr. Talbot,
Aye; Mr. Coulter, Aye.
Motion carried 5:0:0.
e. Policy 19, Board of Commissioners
Aside from Board Book Comments from KP Law and in specifics addressing OBEB
language, there are no further recommendations.
Mr. Talbot commented that clarification is needed where it says the Board approves power
supply contracts. There was discussion at recent meetings; it says the Commission does
approve large power supply contracts.
Page 1 3
Chair Stempeck stated that it is in the policy; Power Contracts, Agreements, and their
resource mix, which happens after the 30 -day review period by the CAB.
Mr. Talbot asked, why did not this happen with the biomass? The Board wants to know
about and approve something of the magnitude of $90 or $150 million, the Commission had
no knowledge.
Chair Stempeck responded that the policy does not differentiate between 10%, 30%, or
40%. Chair Stempeck has no issue with adding language that says, below a certain level the
General Manager has the freedom to do the right thing In terms of capturing these kinds of
elements, because there is always a question of time in terms of getting on board with
power contracts.
Mr. Talbot agreed; If it is timely, the best practice is not to wai ,"eks to have a meeting
for a transient opportunity, but when it is a long term, suc lb 20 -year contract for a
plant that will not be built for three more years, it does not fit at category.
Ms. O'Brien stated that she would bring all power contracts'to the$Qard with the exception
being Transaction Facilitation Annex (TFA). There is already a vote In place for layering and
laddering small transactions through the TFA. Chair ptempeck confirmed
Mr, Pacino made a motion, seconded by Mr. Hi'essy,
approve Policy 19: Board of Commissioners, as:•'present
General Manager.
Roll call vote: Chair Stempeck, Aye; Mr. Pacino, Aye; M
Mr. Coulter, Aye.
Motion carried 5:0:0.
6. Power Supply Update - Mr. Underl-A Dirti of Inte
Mr. Underhill provided an update on' MLD's r S
2019/2020, which RMLD used for the 201 load
he
finished above 2019's re .,(6/1Oths of a.... per
3%). Tload differen, -frOd in the first IF or five
that the Boardof-Commissioners
d, on the recommendation of the
Aye; Mr. Talbot, Aye;
iclusive of the actuals for
aer supply. In 2020, RMLD
2020 ENE forecast (about
of 2020.
It was projected tWthere would Ge an 8% reduction in RMLD's retail sales due to COVID
19 isolation proto >this did.happen. The differences between forecast and actual
.,
results are primarily ` to meted effects. Our industrial customers kept their
production 99ug, resid ds weFe up. Slightly; commercial traffic was down slightly;
but overall, Sefes r$p#?ine ble.
iI
RM i,. me in below budgeted amount in January 2021; RMLD's portfolio in January
sho recasted kilo>w {hour sales slightly below what was projected, as well as loads
and ei- ` prices. Part 61 -.this is due to slightly warmer temperatures attributing to a
decrease In,�ales and load " ads from 2019/2020 were used to forecast RMLD's peak and
the monthly � d factors ds were down slightly, and costs were down dramatically.
Regular on peaipl'sts wi bout $20 - $25 a MWh in early January; the low energy costs
were a big piece ings component. RMLD's portfolio in January showed forecasted
kilowatt hour sales below what was projected, as well as loads and energy prices.
Capacity costs came in slightly above projection. Transmission costs were down by an
offsetting amount. Capacity and transmission are rolled into the same price grouping on the
customer bill, and the cost impact on that was essentially flat for the month of January.
Materials, Greenhouse Gas Emissions Standard/Policy 30 Update Presentation, as shown in
the Board Book.
Mr. Phipps provided an update of Policy 30, reviewed a power portfolio hydro opportunity, a
legislative update, and the certificate management plan.
Page 1 4
Mr. Phipps discussed the information on the legislation update Slide 3. On March 18P` the
House approved the legislation; next, the Bill goes back to the governor and will likely be
effective at the end of April.
Mr. Phipps discussed the information on Certificate Management Slide 4. Beginning in April,
RMLD will transition to retiring certificates and will provide regular updates. RMLD will be
retiring a larger portion of its portfolio each quarter. The remaining certificates, after
completing the required retirements, will be sold. This is a means to buffer the financial
impact going forward.
Mr. Phipps discussed the information on Slide 5. Past practice was to sell and retire
certificates. RMLD will be implementing a more a disciplined approach with monitoring and
managing these certificates monthly; there will be monthly internal updates, quarterly
reports, and annual filings. Mr. Phipps noted that it is import that the Department
manage them on a consistent basis and retire or sell as required =lair compliance.
Mr. Coulter asked, is the Department approaching the c ers in Reading to buy
their certificates? It might be an opportunity. Mr. Phipps responde t it is relatively small
right now because most of those certificates are not„, ed by RMLDh, y tend not to pass
through RMLD's portfolio. For the short-term, the fitment Is not i' ing those in any
sort of compliance management. There are other opportunities that t pepartment will
look at relative to some of our community solar, where thepartment has the choice to
participate or take an ownership role in those ii but now, it is mainly the other
resources. I
1,,0
Mr. Underhill noted that the RMLD is participating wi OQER for incentives for small scale
programs. Part of that requires that the RECs be turned'r to the participating MLP and
then retired.
i
Mr. Coulter asked would ply to battery pr .Agr. Phipps responded that batteries
do not have certificates rfew, but they will impact the Way the solar plays out.
r`
Mr. Talbot noted t*Jie has a 4.65 -kilowatt system on his roof; does RMLD get RECs from
that and retires it?\thdr,0,
ll iesponded that if it is under the DOER program, with a
DOER incentive, theLi
i
Mc PhipigCttssaGenerafor Slide 6. RMLD continuously aims to fill the
open pa the pRMLD has three existing projects (on a smaller scale) with
Grawty,Renewable, wholefocus0ig hydro projects that they own or manage.
This hydrp,project will bele to start delivering power in the summer of 2021. It is an
existing ddial that started la 1870 as a mechanical dam; In the early 19th century, it
transitioned ,electric ge "tion. There is a lot of history in terms of what the Flows are
associated wifh IF=. It is pumped hydro; it is a river -based system in Connecticut. It
went through majt r in back in the early 1980s. Hydro projects undergo extensive
regulatory scrutiny. all sorts of issues, especially environmental related and are
extensively reviewed"tluring the FERC relicense.
This project has been family owned for many decades. Gravity Renewables is in the process
of acquiring this asset and refurbishing it to bring it up to reliable standards. If contracted,
this would be about 3.8% of RMLD's load; 25,000 megawatt hours per year and has
associated RECs.
This project is undergoing relicensing; expected to be completed by 2026. RMLD anticipates
those will be Connecticut Class 1 certificates, but as there is some uncertainty 15 and 25
years into the project, RMLD was provided an option for certificates that have a fixed price.
This way, if the market softens, (highly unlikely) RMLD is not committing that far out to buy
those certificates. If they maintain value, which is expected, then RMLD will have a fixed
price option tied to those. RMLD is being strategic with long-term contracts regarding how
Page 1 5
the RECs are managed. Between now, 2021 and 2026, these will be the equivalent of Maine
class one certificates. These certifcates will be able to be part of our compliance portfolio,
and this reflected in the pricing.
This project is a non -carbon renewable with a long-term contract. While this contract is 25
years out, the rate is very good (less than $2m a year); the project fits RMLD's portfolio and
meets Policy 30 requirements. The RMLD recommends moving forward with this contract. It
is with a company that the RMLD trusts and has a good track record with, from a
compliance, environmental, and risk management perspective. This contract was approved
by the CAB in the previous session.
Mr. Stempeck asked; is there any community pushback or anything environmental that the
Commission needs to know of? Mr. Phipps commented that the only environmental related
requirement from what is already there is putting in a fish Iadgia'. The fact this place has
been there for a long time speaks to the stability of all the envVi0imental factors.
Mr. Hennessy asked about the river; Mr. Phipps responded, t GreMity is trying to close the
purchase and asked us not to reveal it.
Chair Stempeck clarified, from a flow perspectiv j 'lire are dams ahead. of this to try to
maintain a constant flow. Mr. Phipps noted that is correct, a little steadier now.
Mr. Coulter asked if there any river bladders (potential) in*plved? Mr. Under4i responded
not that the RMLD is aware, this is run of the river.
i
Mr. Pacino made a motion, secondr. Hennes s+�r;:.that the Board of Commissioners
vote to accept the General Man agetr $r endation ta•execute a contract with Gravity
Renewables for energy, including associated certlfieates fromahydro facility in Connecticut.
Roll call vote: Chair Stempeck, Aye; Mr.'Henne ,E; Mr. Pdcino, Aye; Mr. Talbot, Aye;
Mr. Coulter, Aye.•
Motion carried 5-0-0 �i t'
Mr. Talbot asked apricing; Hgw does the pricing change over the life of the contract; is
it a fixed price? Is t*typical for_§§ dro projects? Mr. Phipps responded that the actual price
rate is fixed and is on" a low .8f(d pf the av ge of RMLD's hydro projects. Relative to
RMLD's total, olio,' Jects tendito about 80% higher than the average unit
price. Thak { ,he p m of being non -carbon and renewable. One of the reasons
RMLD to rn orw6ilo on this contract Is there are not many of these projects
avai ,and interest^ heiAloped over the past month.
Mr. Talb¢tysked is there thing" tffe Commission should know about, like a controversy?
Mr. Phippso11nded non own; the asset has been in place since the early 1900s. Mr.
Talbot thankadq o r. Phipps '!moving quickly on this.
ql
B. En ineerin &'' `�Re ort - lar Batter 5 stem Im act Stud Mr. ]affari
i�ly:� Director of Enoineerino & Operations
Mr. Jaffari reported RMLD's Reliability Report Slide 2 RMLD's reliability is great, well
below regional and national averages. Everything came in below the average for a five-year
period (through February 2021) aside from weather and related outages.
Mr. Jaffari reported on the Solar and Battery System Capacity Study Slides 4,5,6 and 7. The
study was performed in 2020 to find out the limitations on the system, the feeders, and to
ensure RMLD is not exceeding those limitations. One of the goals was to find out what the
operating limits are and ensure this does not impact the system reliability and safety. The
study calculated the maximum capacity that RMLD can offer to customers for
interconnection at every node as well as better tracking and control over the capacity limit.
The deliverables were to perform an engineering analysis and provide a report with a data
file containing an updated heat index map based on the GIS data provided; and to identify
Page 1 6
the limiting factors (such as wires) and protective devices that need to be an upgraded to
open more capacity.
Mr. Jaffari reported on the solar GIS map Slide 5 which tracks requesting interconnection
and monitors the heat index map for available capacity. To date there are approximately 90
installations and increasing.
RMLD engineers provided the system modeling for the consulting firm to minimize the cost
of this study. Studies of this type generally cost between $50K to $100K; the completed
study came in under $20K. This RMLD information was integrated into the study;
parameters such as system impedance; voltage; wire sizes; and protective devices were
provided to a highly sophisticated software system to conduct the study.
As a result of the study, a heat index map Slide 8 was createevery feeder or circuit
systemwide. These maps are updated every six months whiGl' vires a few hours of PSE
consultants.
Mr. Jaffari reported on the Solar Capacity Results Slide 9 and Sysbl Limitations Slide 10.
The capacity limitations are a shared responsklllty that regoltill*, cooperation and
collaboration between RMLD and its customers. RMLb'Strongly recomme"s using the smart
inverters for solar systems which can control T ower flow, reverse the power Flow, and
regulate the voltage. More companies are o g these advanced feature*^„Jyhich can be
programmed by the customer or the technicians. Using thga5mart programmable inverters
are the key to participation in RMLD's Demand R r. R) program in the future. The
intent is to protect RMLD's system rel bllity and sav make sure the Department is not
exceeding system limitations.,.,,,,... i:..
Mr. Jaffari commented on the System
E&O performing a preliminary analysis
solutions, such as: insta4 ,�. programa
energy during the day Lo.tgse at I
response program w alled fol Rf
Mr. Jaffari reporte&,%1011-13's,, RMLD's i'sim
customer contacting 111-13'5 y; _
customer
The RMLD Ele
website) contain I
and requirements. -
Information on DG
or
and
from
RMLD's procedure starts with
Q0 be advised to seek other
Installing batteries to store
the peak shaving or demand
'ropel Slide 11. The process starts with the
ier department to request Solar/Battery
M. stomers are encouraged not to make any
ercial) prior to contacting RMLD to find out the
limitations. This allows customers to know the
From there, a series of steps occur internally to
inception to completion. Interconnection is a
!r and RMLD, which requires cooperation, and
=quirements Handbook (updated in 2021, located on RMLD's
for customers about the construction duties, responsibilities,
can be found in Section 13.1 on page 44.
9. Financial Report - December Financials (Unaudited Draft) - Ms MarKlewl¢
Director of Business & Finance
Ms. Markiewicz stated that RMLD aims to present the audit to the Audit Committee in May.
The draft audit findings are presented to the Audit Committee, who makes a
recommendation to the Board of Commissioners; then the Board of Commissioners accepts
the audit. After accepting the audit, the final financial statements, can be released to the
public. This aligns with Ms. O'Brien's report to the Select Board in the service towns.
Ms. Markiewicz presented the unaudited draft of the financials prior to any pension and
OPEB adjustments. Due to COVID, the focus is RMLD's ongoing relationship with customers;
trying to provide leeway and extend services to provide further assistance.
Page 17
The financials dipped in June, because of people experiencing the financial effects of COVID;
and dipped again in October on receivables. Currently, RMLD is back at 96.5% cash in the
bank, 90 days current; 90 days is a good judge as oftentimes utility bills get missed. RMLD
does not impose any finance charges or penalties for late payments. Ms. Markiewicz
addressed the depreciation reserve compared to capital spending. RMLD's capital
improvements for the safety and reliability of the infrastructure is the only depreciation
reserve that has to be held for capital projects. This is reflected in the capital spending.
RMLD came in below the projected budget in CY20 ($7.3m) in CY 20; but due to the COVID
impact that is where RMLD ended.
On the operations and maintenance expenses, (actual expenses through 12/31/20), the
budgeted expenses were approximately $1.1m under budget, thei.Tajority of that is due to
COVID. There are still a few outstanding invoices. "'f"
RMLD's biggest decrease in the budget was from vacancie;x Itiple areas due to talent
pool, retirees, and resignations, which caused an overaii' c The vacant positions
were in grid asset management, station technicians %m—erial ement linemen, and
administrative staff. COVID caused a decrease in y�nding partici in tree trimming
programs, which were halted or decreased begati5e of the state majfdate, as well as
education and training programs which were caged or diminished.
Unforeseen events caused an increase in spending, Due tothe new language in the union
contracts, RMLD now allows employees to cash ouNs�
sick time (with strict guidelines
in place). If employees meet the gwQelines, they aged to buy back the sick time
because that eliminates the liability.Ifatgncally increases annually as payroll
increases. This year, the liability decreased, whichve for RMLD. Additional funds
were spent on necessary roof repair; an&#W' onitoring measures for IT
infrastructure due to the ransomware in', ;
Mr. Coulter commented policy. 711e Department eras a sick buyback liability, and
it is working to mak "better stn encouraging employees to take the money now rather
than later. Is that hing the Cfepartmenf ould revisit in the sick policy to potentially
limit that exposur" the future? Ms. Markieon responded that in the past contract, Ms.
O'Brien worked ha mini .,khe sick (unlimited 90, 60, 30 days for new
employees). Through i 'M5. ' 'I, an was able to get it down to 30 days. In the
past man s ha d unlimited itck leave buyback. As employees retire, that is
dim ini , an hires`' me in, they are limited to 30 days.
J
10. ProcuremenC uests Reouirino Board Aooroval - Mr Jaffari
Director of Enoineerina & Operations
Mr. Jaffari ed that thi -`id was sent to 25 companies: one respondent. Bidders did not
respond becaasE Ihey ed id not have the DCAM certifications, or they could not provide
services for boltt;�. ,e i chines and the HVAC system. It saves RMLD money if both
services are per '' `the same vendor. Last time, Ambient Temperature was awarded
the bid for $89,808. this bid they came in higher at $118,056. This was due to COVID
restrictions; the CDC mandated requirements to change the air filters to nerve DASH -13
filters and increased the frequency from four to six times a year.
Mr. Pacino made a motion, seconded by Mr. Hennessy, that IFP 2020-47 for HVAC and Ice
Machines Preventative Maintenance Service be awarded to Ambient Temperature
Corporation for $118,056.00, pursuant to M.G.L., c. 30 § 39M, as the lowest responsible
and eligible bidder, on the recommendation of the General Manager. This is a three-year
contract.
Roll call vote: Chair Stempeck, Aye; Mr. Pacino, Aye; Mr. Hennessy, Aye; Mr. Coulter, Aye;
Mr. Talbot, Aye.
Motion carried 5:0:0.
IFP 2021-03 ABB OVR-3 15kV Reclosers
Pae, 1 8
Mr. Jaffari reported that this bid was sent to 14 vendors, two respondents. The lowest
responsible and responsive bidder was Stuart Irby, approximately $1,000 less than Wesco.
This was slightly over the budgeted amount ($100K for five units). by $1,215.
Mr. Pacino made a motion, seconded by Mr. Hennessy, that IFP 2021-03 for ABB OVR-3
15kV Reclosers be awarded to: Stuart C. Irby Company for a total of $101,215.00, pursuant
to M.G.L. C. 164 § 56D, on the recommendation of the General Manager.
Roll call vote: Chair Stempeck, Aye; Mr. Pacino, Aye; Mr. Hennessy, Aye; Mr. Coulter, Aye;
Mr. Talbot, Aye.
Motion carried 5:0:0.
IFP 2021-09 Pole Mounted Transformers
Mr. Jaffari reported that the bid was sent to 18 vendors, four respondents. The lowest
responsible and responsive bidder was Wesco Distribution for $120,074. These transformers
are for system reliability and for maintenance for both overhead and underground
applications.
Mr. Pacino made a motion, seconded by Mr. Hennessy ,that,•!%,IFP 2021-19 for pole
mounts and transformers be awarded to Wesco Distn utbn Inc 120,074 pursuant to
M.G.L. c. 164 § 56D on the recommendation of the Gal Manager.'w�
Roll call vote: Chair Stempeck, Aye; Mr. Pacino, Aye,'Mr. Hennessy, A 11i Coulter, Aye;
Mr. Talbot, Aye.
Motion carried 5:0:0.
IFP 2021-10 Pad Mounted Transformers
Mr. Jaffari reported that the bid was sent to 21 biitors, a respondents. This was for 14
transformers for underground proJecrls. The lowest i. sive and responsible bidder was
Wesco Distribution for $194,274.00. >Ie
Mr. Pacino made a motion, seconded b Mr. ssy, tha P 2021-10 for Pad Mounted
Transformers be awarded to: WESCO D Mr.
or $1 74.00, pursuant to M.G.L.
c. 164 § 56D, on the reco ation of Ge r.'
Roll call vote: Chair Sl=ate; Mr. rl�lnessy, Aye; Pacino, Aye; Mr. Talbot, Aye;
Mr. Coulter, Aye.
Motion carried 5.0441
11. Scheduling Cha fr6 m
Next RM LD d Meet' ay, April 22,.2021
CAB MX ,ge, T 5 ay, April 22, 2021 - Commissioner Pacino
12. Review of G`� M r -Chair Stem ecK
Chair. mpeck stated this
been a particularly difficult year for everyone. RMLD
stayed' course and th`3} was directly attributed to the leadership role that Ms. O'Brien
played in � organization. -{19e format for the GM performance review was changed from a
point syste a 360 dee review. This review was conducted late due to COVID; and
this payment a", etc,, y, be retroactive back to January 1, 2021.
Ms. O'Brien sent oiltiownarratives with a list of accomplishments, changing from a point
system to quarterly check in. The goals included the Wilmington Substation, the Ash Street
campus (put on hold due to COVID), solar battery system, impact study, master sell
agreement and electrification workshop. Despite COVID, RMLD had a successful year. The
Chair and Ms. O'Brien met on a weekly basis, provided updates, and sent memos, as a
mechanism of staying transparent. The RMLD has, and will continue to do, an outstanding
job of providing excellent detail. The Commission appreciates everyone keeping up with all
the technicalities of this engineering organization.
Mr. Hennessy stated that Ms. O'Brien and her team had a lot to go up against during this
pandemic year; and Ms. O'Brien accomplished all the key goals that are in her control.
There are many things that you cannot control, like the land in Wilmington. There are many
stakeholders - union employees, nonunion employees, commercial, residential, that Ms.
O'Brien has, who set demands. Ms. O'Brien met those demands, resiliency during a very
Page 1 9
tough year. Mr. Hennessy noted that there are challenges that Ms. O'Brien faces that others
would not, being in a male dominated industry. Mr. Hennessey shared congratulations on an
impressive year.
Mr. Talbot made a comment on the process; noting that he received all the emails from Ms.
O'Brien with her achievements and letter, and some salary comparisons, but none of that
was in the board book. Should that material be in the board book as a matter of process,
openness? Chair Stempeck commented that he believes there is no issue with including it.
Ms. O'Brien said that the goal narrative can be put it in the Board book. Ms. O'Brien added
that the goal information will be transparent and found in the annual report.
Mr. Talbot noted that it was a lot of information to process. Mr. Toot thanked Ms. O'Brien
for all her hard work and all the great engineering that isAdonel"LD.
Mr.Talbot echoes
the comments of Mr. Hennessy about COVID and the exct has all been handled.
It is worth acknowledging. Mr. Talbot asked what Ms. O'Bssment of the biomass
is, as she looks back at the decision she made and wppened in the last six
months. What are her own reflections on that?
Ms. O'Brien responded that she did not discussit `Ifically in her go arrative because
usly
it has been discussed continuoover the x months. It was cl stated at the
beginning, she was following the policy as it has been implemented. RMLD h seen focused
on obtaining renewables at a pretty good clip tai a the Ae�ntage goals that were in the
policy. The RMLD is actively adding renewable p s presenting them every month.
Palmer was presented in February and November. artment has learned a lot about
environmental justice. That is somehlRg the RML very interested to see for new
projects coming out. RMLD was aslopq, to Rrgvide option$ and provided options quickly.
Everything will be brought to the Board4hat is m�P'o�lli+eic�y 3Q �,flects that.
Mr. Pacino stated that he agrees with rp y of the^ thingill;$hat Messrs. Hennessy and
Talbot have said. Mr. Pac m;i�p'limen :Ms. Mien on her handling of the IT situation
and thanked her forth , her'
er servlges.
Mr. Coulter stated.. he has a ue perstaKtive coming from the industry. At first, Mr.
Coulter was very I and bill R o the inner -.workings of the RMLD model; he has been
extremely impresse s. ;' �p'taff and all the employees at RMLD. Mr. Coulter
commented t t it is tight` 6*� ,roup, and he is very impressed with the
organiza �. its a plishments with the budget, and the personnel. It has been a
pleasu o hop tin .Mr. Coulter noted that when Ms. O'Brien finds an obstacle,
sheA °through it, a eets'#tje. challenges every day. Kudos to yourself and all the staff
at R
Mr. Hennp noted that h impressed with the staff that Ms. O'Brien has hired who are In
this Zoomng. In ad n, a lot of the credit goes to her because she brought them
here and deve the . O'Brien commented that RMLD is building a good team.
Chair Stempeck p the following numbers to be added to the motion, a 4% salary
increase and a $6,00 onus. Chair Stempeck opened that to discussion.
Mr. Talbot asked Chair Stempeck to address the comparisons of where RMLD stands in
terms of the General Manager salary. Chair Stempeck stated the data that Mr. Talbot is
referring to is produced by MEAM, which covers all the municipals in terms of salary versus
the revenue of the municipal. The numbers referenced are from 2020. In the meantime,
others have received an increase in this past year. Because of this, Chair Stempeck is
suggesting a 4% increase and a $6K bonus. The union increase this year is 39%.
Mr. Hennessy asked for the prior salary increases. Chair Stempeck responded that 2019 -
4%, 2018 - 4.5%, 2017- 4.5%, 2016 - 69/b, 2015 - 3.6%, 2014 - 3%. Her starting salary
was $165,000. She was starting at a significantly lower salary in those days because, she
Page 1 10
was just hired and the Commission was bringing in a new person that had to prove that she
could handle the load and do whatever was needed, Ms. O'Brien has accomplished that.
Mr. Talbot said that the MEAM salary comparison showed there are four municipal managers
who make more than Ms. O'Brien. There are 41 municipal light plants, Taunton, Holyoke,
and Braintree whose managers earn more but also have a broadband business. There also
may be one other manager above $212,000. Mr. Talbot noted that Ms. O'Brien receives
$800 monthly for her vehicle. It is not about performance or raises, what is the market and
our obligation to the ratepayer. He does not see the market justification for keeping going
so much higher
Mr. Coulter commented that he is comfortable with the percentage of the raise. In a year
there are two important things the Commission should base evp,, hing on, to keep the
rates low, and the reliability significantly lower than othefsi�•'�N�m''1he General Manager
accomplished the goals that we wanted. If the revenue stre ,s good, which it is, that is
another positive. The 4% in this industry is a good raise. onus side, maybe even a
little bit higher, he would be more than willing to make that,
r
Mr. Hennessy noted that he is comfortable with bo dlLmbers becau,it is very consistent
with what raises we have given Ms. O'Brien Int "neral Manager on since he has
been around, and it has been in the mid-range, s has been an extre difficult year,
and she has met the challenge for this year. He is fine with t numbers theay they are.
Mr. Pacino stated that after hearing what Mr. Coi had.say he is comfortable with the
numbers. ilii
Mr. Talbot said that he would propose a 1% f ose, with all bonus. The current salary
suggestion is too much. Soon, it is going to 1 highest' ry in the state, and he does
not see the justification for it i
Mr. Pacino made a m ° ded bye., messy, t the Board of Commissioners
approve a 4 b sala a and al$6,000 b p, "s retroactive to January 1, 2021 and to be
paid as Ms. O'Brie ses as ICp cash ort?0{nbination of the two.
Roll call vote: Ch empeck,. Mr. Pacinel;,Aye; Mr. Hennessy, Aye; Mr. Mr. Coulter,
Aye; Mr Talbot Nay xx
Motion Carrfp , 1:0. , of v inst the motion.
13. Re mzation'- e R _. oard of Commissioners - Chair Stemoeck
Cha" ' mpeck put f the n of a reorganization of the Commission's officer for the
com ear at this me . This ""quld provide continuity to the leadership and avoid any
possib se in direction the Department.
-Rb
Mr. Talbot n that the Olrimission has never done a reorganization at this point in the
cycle during h15 i•iienure Yfe Commission. He requested that the Commission defer the
reorgan z tion until, upcoming election.
s,
Chair Stempeck said'tl'iat it is very close to when we usually do It. He restated that the
purpose is to avoid any possible gap in leadership.
Mr. Talbot responded that the Commission traditionally has a reorganization after the
election when there is a new Board in place. Chair Stempeck commented that he is putting
forward an innovative process to address the continuing leadership of the Commission.
Mr. Hennessy added that he agrees with Mr. Talbot's position to defer the reorganization
until after the election.
Mr. Pacino was asked if the Commission had done a reorganization before the election at
any time during his 34 years on the Commission. He replied in the negative.
Page 1 11
Mr. Coulter added that he agrees with the purpose behind the reorganization at this point in
time. He reiterated his experience of coming on the Commission and going through a
learning curve.
Mr. Pacino was asked to put forth the motion to nominate the new Commission officers for
the coming period. He stated that he believed it was an innovative idea. However, seeing
that the Commission was evenly split on the idea of a reorganization at this meeting, he
stated there is not enough consensus to go forward and thus declined to make the motion.
Chair Stempeck then stated that we will forego the motions related to the reorganization of
the Commission.
14. Executive Session
At 9:44 PM, Mr. Pacino made a motion, seconded by
Commissioners go into executive session pursuant to
Section 47(d) exemption from public records and open
instances to discuss comparatively sensitive issues regar
to consider the purchase, exchange, lease or value or r.
session for the sole purpose of adjournment.
Roll call vote: Chair Stempeck, Aye; Mr. Hennessy e;
Mr. Coulter, Aye. ii17
Motion carried 5:0:0.
Mr. Hennessy, that the Board of
Mass Gail laws, Chapter 164
m requirements in certain
di 'ons for power supply and
ealfy'W ,,. and return to regular
Mr. Pacino,Aye; Mr. Talbot, Aye;
15. Adiournment
After reverting back to Regular Session, at 10:02 Off, �'ci no made a motion, seconded
by Mr. Hennessy, that the Board adjo,'�ftaa�irb�nrr ;
Roll call vote: Mr. Hennessy, Aye 4',... item Peck, Ayej fN r. Pacino, Aye; Mr. Talbot, Aye;
Mr, Coulter, Aye.
Motion carried 5:0:0.
yF,
it
Page 113
Town of Reading
0Y Meeting Minutes
,�'��+IMO p�
Board - Committee - commission - council:
RMLD Board of Commissioners
Date: 2021-04-22 Time: 7:30 PM
Building: Location:
Address: Session: Open Session
Purpose: General Business Version: Draft
Attendees: Members - Present:
Mr. Robert Coulter, Chair; Mr. Philip B. Pacino, Vice Chair; Mr. John
Stempeck, Commissioner; Mr. David Talbot, Commmissioner; Marlena Bita,
Commissioner
Members - Not Present:
None
Others Present:
RMLD Staff: Ms. Coleen O'Brien, General Manager; Mr. Hamid Jaffari,
Director of Engineering and Operations; Mr. Charles Underhill, Director of
Special Projects, Mr. Greg Phipps, Director of Integrated Resources; Ms.
Wendy Markiewicz, Director of Business and Finance; Ms. Janet Walsh,
Director of Human Resources; Ms. Kathleen Rybak, Operational Assistant
Engineering and Operations
Citizens' Advisory Board: Mr. George Hooper, Secretary, Wilmington
Others: Ms. Gail Paige, Reading; Mr. David Zeke, Reading
Minutes Respectfully Submitted By: Philip B. Pacino, Secretary Pro Tem
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 Meetina to Order
Chair Stempeck called the meeting to order and he welcomed the new RMLD Board
Commissioner Marlena Bita.
Ooenino Remarks
Chair Stempeck announced that the meeting is being videotaped via Zoom for distribution
to the community television stations in North Reading, Lynnfeld, and Wilmington.
Chair Stempeck noted that Mr. Pacino will be the Board Secretary.
Chair Stempeck stated that he understands that there are requirements for remote
meetings that need to be followed, such as naming the member or members who are
participating.
2. Public Comment - Chair Stempeck
a. Citizens' Advisory Board/RMLD BOC Report from CAB Meeting
Page I I
Mr. Hooper, CAB Secretary, welcomed Commissioner Bita. Mr. Hooper had nothing to
report at this time.
b. Liaisons to the Board
Chair Stempeck commented there has been no reappointment of the liaisons to the
RMLD Board from the Select Board.
c. Public Comment
Chair Stempeck stated that Mr. David Zeke and Ms. Gail Paige would like to speak.
Mr. Zeke said that relative to the Palmer biomass plant on April 2, the Department of
Environmental Protection revoked the permit for the Palmer biomass plant. Secretary
Theoharides commented that if they were to reapply for the perm' they would find the bar
raised considerably, partly in light of the recently passed ., ate Bill, setting new
requirements for environmental justice communities. Accordinw;CommonWeafth Magazine
a source in the Baker administration claimed that the plan< . ..po longer compatible with
the governor's current focus on climate change, symboli; ning of climate change
legislation. Mr. Zeke stated that DOER has recently pr odd chan o the RPS that would
disallow any RPS credits for biomass plants within �, miles of a'' ironmental justice
community. Mr. Zeke asked does RMLD plan to ally withdraw fr `,j:he contract it is
committed to? Will the power sourced from ttbilililfOlmer plant be removek!rom the RMLD
monthly forecast? z� '
Mr. Pacino said that this was also discussed at, CAB mftUtlg he attended, In which Ms.
O'Brien and Mr. Phipps provided feedback.
Mr. Phipps responded to Mr. Zeke t Pins of Pali-60"eing in RMLD's portfolio the plant
is not slated to be formally comm) ^'.Until mid i-644ear 2022. RMLD has it in its
forecast portfolio, but if the RMLD were exit"Gpntract, It"Would be removed.
,k
Chair Stempeck ex lame the Commission a{nd i1jLD"have been very aggressive
and exploring all alter D does nth, rit to bre6& an existing contract, because
that has major implis for embody, riYsE+ust Reading. The RMLD is being very careful
about that and st within all {pe legal giitlplines. There is potential that the plant will
not be able to meefi contractuaiiibligations frpm what the RMLD has seen and heard.
y,
Ms. Paige st that s ` ' ed a questlon in the CAB meeting in which Mr. Phipps and
Ms. O'Br at 7 answering. She had one concern in the customer survey; it
was cl
at 1 stomers are willing to pay for a rate increase to reduce
gre 'se as emis Th pen clean energy policy, states that customers want to
redu" reenhouse ga issiori but with little or no price increase. In the mission
:em Jt talks about ping low costs and Ms. Paige gets that. But she is requesting
that the _ energy poli a amended so that it is not misstating where the source of
keeping th es low is. is not coming from the customer because the majority are
willing to pay �` e. It i Ily coming from the RMLD mission statement. She would be
more comfortab ing was changed to say that the RMLD will, however, follow our
mission statement point, which is to keep prices low. Ms. Paige stated that she is
uncomfortable with h ing a statement that does not accurately reflect what the customer
said in the customer survey.
Mr. Coulter said that he understands what was said. RMLD's mission statement - rates,
reliability and revenue are extremely important to everybody. There is a subset of
customers willing to pay more, he is hesitant to say the majority are willing to pay more.
Chair Stempeck said that the survey showed there were different categories of how much
more people were willing to pay. The Commission and the RMLD are going to try to
implement something that reflects that and allows people to pay in different categories. The
Commission and the RMLD have not formally talked about how to accomplish that yet. The
survey said 67% would like RMLD to be aggressive with respect to setting goals, to reduce
greenhouse gas emissions. The RMLD is on that path by trying to react faster and go further
than what we are being mandated by the state. We have to balance those out.
Page 1 2
Mr. Pacing commented that he is going to request the Board review how we allow the
ratepayers to speak at these meetings. He is starting his 35th year on the Commission and
has always served with the idea of transparency and listening to the ratepayers. He is a
little bit uneasy with the policy that we have in place for the way we are allowing the rate
payers to give us input. Prior to this meeting at the earlier Citizens' Advisory Board meeting,
there were citizens in the middle of the meeting who asked questions and brought up their
ideas. The only thing he requires is for the public to be respectful.
Chair Stempeck stated that he completely agrees with Mr. Pacing. As Chair he adopted the
public comment policy put in place by the Reading Select Board. Mr. Pacing commented that
the Commission should be setting its own rules to address this. He requested that the
leadership for the next meeting review how the Commission alows public input. Chair
Stempeck said that the Commission is always looking for be ctices; we can always
discuss this, and we will address this in future meetings.
3. Reoort of the Citizens' Advisory Board on April
Mr. Pacino reported that at the CAB meeting, Mr.
on his report; Mr. laffari provided a report that it
outstanding presentation on the billing, receivable
4. Approval of Board Minutes IIII
Mr. Pacino made a motion, seconded by Mr. C'
approve the meeting minutes of the January 20, 2Q
the General Manager.
Roll call vote: Chair Stempeck, Aye; Mr ,.Aye;
Bita abstained.
Motion carried 4:0:1. Ms. Bite was not;prese'
14. Reorganizati
Chair Stempeck
election of Chair
Mr. Talbot noted th
Coulter and 'no are
is that w issi
to thin ut no I
re -e "' n year. 0th
Mr t suggested th
Chair Ste k made a
with the vo air to t
There were nd'fi'irther m
Chair Stempeck m
Roll call vote: Ms.
Stempeck, Aye.
Motion carried 5:0:0.
Chair,
riding presentation
Markiewicz had an
the Board of Commissioners
'Iq on the recommendation of
Aye; Mr. Coulter, Aye; Ms.
out of order on the agenda for the
Isn press in the past. He added that Messrs.
`over ttd} �..'$wrily tweak, which would apply to him as well,
heading into a re-election year, it would be a good practice
ERpmmissioner be seated as the Chair in the period before the
have adopted this practice. Chair Stempeck agreed.
igs should be to put in the Board policy to affect this tweak.
seconded by Mr. Talbot to nominate Mr. Coulter for Chair
position immediately after the vote.
lotion, seconded by Mr. Talbot, to close the nominations
Aye; Mr. Coulter, Aye; Mr. Pacino, Aye; Mr. Talbot, Aye; Chair
The Commission then proceeded to the election of the Chair.
Roll call vote: Ms. Bita, Aye; Mr. Coulter, Aye; Mr. Pacino, Aye; Mr. Talbot, Aye; Chair
Stempeck, Aye.
Motion carried 5:0:0.
At this point in the meeting newly elected Chair Coulter presided as Chair.
Chair Coulter made a motion seconded by Mr. Stempeck to nominate Mr. Pacino for Vice
Chair.
There were no further nominations.
Page 1 3
The Commission then proceeded to the election of the Vice Chair.
Roll call vote: Ms. Bita, Aye; Chair Coulter, Aye; Mr. Pacino, Aye; Mr. Talbot, Aye; Mr.
Stempeck, Aye.
Motion carried 5:0:0.
Mr. Pacino added that he will continue as the Secretary if it is amenable by the Chair. Chair
Coulter said that Mr. Pacino could continue in this capacity.
5. General Manaaer's Report - Ms O'Brien General Manager
Community Uodate
EV Workshop
Ms. O'Brien stated that there will be a virtual EV workshop on Apr ,27 at 7:00 pm with 124
registrations as of April 20. Some of the community television pns will be broadcasting
this live.
High School Art Contest - 2020 Annual Report
Ms. O'Brien thanked the Board for voting on the high school art.' "rtwork is spectacular
along with their respective narratives. Since she has. at RMLD, ftAnnual Report costs
have been scaled down using the high school stunt"s artwork. Thee -place recipient's
artwork is on the cover of RMLD's Annual Re' "The awards are as follows: $100 first
prize, $75 second prize, $50 third prize and fourth prize $25 for art and sch pplies. The
presentation of the awards will take place the first wee l ay with a minim of one
RMLD Board member and one CAB member. ,
The Town of Reading Audit Committee,#nd the Co p� ioner's Audit Subcommittee are
tentatively scheduled to meet in May; hi means that �i, nnual Report will come out in
June. �� (,f ..u,
Battery Walkthrouah
811111
There will be a posse hl Ikthroig, with some t�Imur state delegates at our five -
megawatt battery f ' We�eived a.... million dollar ACEs grant and are seeking
additional potentia : ery grants,,, the future for smart grids.
The virtual rificati` ab od�is•seheduted for June 7 at 2:30 pm. This event is in
partnersh Wilm � n Public Library to coincide with their earth year theme.
The R1,q.D has applied 4. V grant
s: from the state. RMLD applied for level two and three
chargek',T,he Towns of ington and Reading are both submitted. As of today, there is
no further#a,tus update n11;
An outdoor bike'Being held at the RMLD (April 30 - bike drop-off, May 1 - bike
on
selecti) which R ares manages. This bike event is now sponsored by the Reading
Climate Action Com ee with Reading Cares. In order to permit this a secure command
incident approval and a COVID plan were obtained. There will be required face masks and
social distancing. All COVID plans were authorized by the Board of Health.
Electrical Safety
On May 11, the Reading YMCA is sponsoring a Healthy Kids Day. RMLD will teach electrical
safety and education.
The GM regularly looks at all rebates and programs RMLD performs. For example, when
RMLD provided rebates for window air conditioning, the result was an increase in the seer
ratings. Then the RMLD went from windows to whole house air conditioning. The RMLD is in
the process of reassessing the best way to spend the customer's money to give a benefit
Page 1 4
back to the RMLD and its customers. The RMLD may have some rebate changes and
additions that will come as part of the Class Cost of Service Study that is being performed.
6. Review of Policies - Ms. O'Brien. General Manager
Ms. O'Brien stated that the policies did not have review dates when she came onboard,
however, the RMLD has implemented a three-year review cycle date to ensure the language
stays in compliance with laws and updates.
Policy 3: Safety Committee
Ms. O'Brien reported that RMLD has a tight safety review team consisting of two
committees, the electrical and the general. There are no changes in the industry that would
warrant any legal or best utility practices changes. The RMLD meets all the Policy 3 criterion
therefore no recommended changes. _
Mr. Pacino made a motion, seconded by Mr. Stempeck, that: POlfi 3: Safety Committee be
scheduled for the next periodic review without change.
Roll call vote: Mr. Stempeck, Aye; Mr. Pacino, Aye, Mf.; Ttlb'i�,"Aye; Ms. Bita, Aye; and
Chair Coulter, Aye.
Motion carried 5:0:0. `I=jir
I i i'Iic,
Pglicv 6: Drug Free Workplace
Ms. O'Brien explained that Policy 6 is RMLD's Drug and Alcohol Free Workplace policy, which
she has been working diligently over the last six ye@rs to ,jpI all union contracts to have a
drug and alcohol free workplace. CDL testing, a e " and alcohol has been put into
collective bargaining agreements. Thele are no sigupdates to Policy 6.
Mr. Pacing made a motion, secondedI;.$tempeck, that. Policy 6: Drug Free Workplace
be scheduled for the next periodic review withop+� ange. II�I'I�
Roll call vote: Mr. Stempeck, Aye Mr: ting ,f9r. Ta%6, Aye; Ms. Bita, Aye; and
Chair Coulter, Aye. '
Motion carried
Chair Coulter said' relative t Iicy 13, th$I MLD facility is a great facility with a great
room for use, but it i ava side use. Being a resident, he has tried to secure
space forii� rgamz se. limited where these and other organizations
can go t "` icly ading A defin ion of NERC and not allowing people in the
building" comp di in his point of view. He put forth a request to allow that
roogy ss and limi s wink„ ivers be permitted.
Ms. O'"Nknclub,
ed that K. n sh u'19Hist started, the building was open to the public. There
was a an old hioned vintage car group and others that met in the meeting
space. g did su some vandalism and misuse. The RMLD is not set up like a
public 9 like rary. The RMLD does not have custodians. The RMLD has two
mainteo ed for outside group meetings would incur overtime costs. This
is not solely a NE 'pliance issue. The RMLD made the decision in 2016 to limit the
facility use to all towris in our service territory and to any committee that is covered under
their liability to protect the RMLD and its facilities.
Chair Coulter said that with today's technology and cameras the facility can be protected,
and any issues could easily be corrected. Anybody who goes into an inappropriate area
could be identified. Chair Coulter requested the policy for space use for a community
organization be reviewed.
Mr. Talbot echoes that it is worth taking another look at the policy. He understands that Ms.
O'Brien has concerns, but agrees, there should be a way to allow the building to be more
open perhaps there is an energy education piece that the RMLD can be doing.
Chair Coulter suggested that once COVID ends that this policy can be revisited.
Page I S
Mr. Pacino said that there were problems in the building as Ms. O'Brien mentioned. In
addition, people parked illegally in the parking lot. We are in the wires business and that
drove the decision with the Board at that time. He has no problem revisiting the policy, but
his concern is how the facility is used, whether it would be a detriment.
Ms. O'Brien added the building is used by the Reading Police Department for the RAD self-
defense program which qualifies under the policy. The RMLD also sponsors training for
technical engineering in which other MLPs come in to use the building and, in most cases,
RMLD employees are in attendance.
Ms. O'Brien stated that she would like to have the bike event with the red line changes and
after COVID can revisit the policy again.
Mr. Pacino made a motion, seconded by Mr. Stempeck, that ,Board of Commissioners
approve Policy 13, Facility Use, as presented on the re enciation of the General
Manager with the provision that the policy to be reviewed., WhIthe Board of Health allows
the building to be reopened. J;ja
Roll call vote: Mr. Stempeck, Aye; Mr. Pacino, Aye, .Mr. Talbot, AO; Ms. Bita, Aye; and
Chair Coulter, Aye.
Motion carried 5:0:0.
Ms. O'Brien stated that the next review date wi!!i "When the Building Opens to Public."
Policy 19, Board of Commissioners
Ms. O'Brien stated that there will be changes pre''I d pt.the next meeting addressing the
chair vote and committees.
7. Power Supply Update - Mr. Underh LDI of S eci sects
Mr. Underhill reported that RMLD finish'„ the quarter 2.4% w the ENE budget numbers;
however, the results are 2.3 above I�ear ese n increase in load but not
as projected in the powe by budg'eM l a `.doen for January, February, and
March.
RMLD is off to a start this r. In January and February actual power supply costs
came in below th dgeted , unts. This Fesult translates into a good cumulative
differential. This is th of _`�. ; paci%yand transmission expenses.
Half of sup sts is for energy in January and February, the results came
in be n budg` : �Sho ` t positive cumulative differential.
Capadfjr;tosts came in a.tle bits er than anticipated with a $70 to $75 million budget,
this reflect5.a $50,000 toi9'AS,000 cumulative variance; this is not a concern.
Transmission carne in hig :than projected. In February, the RMLD received a credit from
National Gnd' sub tr ission expense (formula rate) and every month their values
fluctuate. It is not+..�:;cp nt amount which the RMLD can expect.
In January, RMLD's ldYds were slightly under budget whereas in February they were slightly
above the budget amounts. NextEra is the largest component of RMLD's power supply
budget. The nuclear units performed well, and our market share was within the tolerances
for risk mitigation that are built into the budget.
8. Power Portfolio Addition/Policy 30 - Mr. Phipps, Director of Integrated Resources
Mr. Phipps reported that he will be presenting another power supply contract. In addition,
he will be providing an update on the Climate Bill and a Policy 30 update and discussion on
the retail side and renewables.
RMLD's power supply portfolio is designed from a risk mitigation and stability perspective to
have a significant portion in long-term contracts. In the context of the Climate Bill, once
called Roadmap 2050, this design has been discussed extensively. Non -carbon is the new
Page 1 6
metric based on the new bill and the RMLD is pursuing power supply to align with this new
metric.
There are not many hydro facilities in New England. This hydro opportunity is located in
eastern New York, near Saratoga Springs across from the Hudson. It is a rural recreation at
the confluence of the Hudson and the Batten Kill River. This project is under the control of
Gravity Renewables, whose focus is hydro facilities.
It is not a facility likely to have environmental issues given geography and longevity. It is
not a facility that will require any sort of a fish ladder since no natural fish migration is part
of the river system section. The facility was established back in 1925. Gravity acquired this
facility in 2019, and completed, a multi-year upgrade which is typical when they acquire
new facilities. It was licensed back in the early 90s under a FERGlicense. All publicly filed
documents indicate a very clean facility from an environmental p
."ective.
From a reliability perspective, this would be a 25 -year term.N RMLD would start
taking power from it this summer. It is a seasonal riyontract represents
about 5.5% of RMLD's portfolio and has, Connecticut class s. This is critically
important in terms of RMLD's requirement to start reportinnce on an annual
basis. Its pricing is close to the average hydro cost; in our p1Hia,,.
Mr. Stempeck said that he wants to ensure t�e have res rched this faclHty. extensively
so there are no environmental impacts that cou me baghaunt us. Have we done any
survey of, for example, the local newspapers fo p i, *�o years to make sure no one
has filed anything? He realizes there are filed publ ents, but are there any kind of
community concerns that we should i'a..re of? }'
Mr. Phipps replied that the RMLD y arting ague diligence process. The
environmental review in the context of everythi MLd`hpB been through in the past
six months is a critical is J,MLD will d0 its but the FERC process is also
extremely stringent h rpgfgrehensh(g,fetdew. For facility which Gravity will be
starting next year, a r FERC'felicensi jN¢5tess will be required.
Chair Coulter asked' you pay ardless of rought or is it just if it flows. Mr. Phipps
responded that the wi _ on " t gets delivered and made sure that it
matches our uireme '56TWK66ak needs, as well as seasonally.
Mr.
after
Mr. Pa �lumade a motioif
vote to a'cEW the Generz
due diligenc(Ith Gravity
hydro faciliTnq!" w Yor
General Manager_e
Roll call vote Mr.`i
Chair Coulter, Aye.
Motion carried 5:0:0.
Stempeck's point, should we be adding language in the
.cond'ed by Mr. Stempeck, that the Board of Commissioners
mager's recommendation to execute a contract after proper
iewables for energy, including associated certificates, from a
the recommendation of the Citizens' Advisory Board and the
Aye; Mr. Pacino, Aye; Mr. Talbot, Aye; Ms. Bita, Aye; and
Mr. Phipps stated that IRD has responsibility for the retail side of the business. The Climate
Bill focuses on both electrification and non -carbon sources. Both factors will have a
significant impact in terms of how the RMLD manages the business, both the retail side and
the wholesale side.
RMLD is updating its forecast models in the context of electrification; in terms of the load
filling that with purchase power. Regarding load growth, the rebate program has undergone
many changes this past year. The air source heat pump is focused on the HVAC for
residential and small applications. It is a component of both the electrification and the drive
Page 1
toward non -carbon. In addition, the Climate Bill mandates electrification of transportation as
well. All these factors impact RMLD's retail load with upward pressure.
In our forecast model, RMLD is looking at a 1% increase per year over the next 10 years,
through 2030. After a decade of flat load growth, we anticipate the load growth to increase.
The HVAC - air source heat pumps applications have already started to increase in the past
few months, from ten to thirty monthly.
RMLD needs to address its incentive and rebate program to support state mandated
electrification. The operating costs continue to increase on a regular basis, with an average
of about 3% annually.
RMLD is examining the energy conservation and electrification fu where the rebates are
paid. RMLD is at $0.001/kilowatt hour, which is below the aver `"f other MLPs, and local
IOUs. RMLD tends to collect and spend more money than of P's. Our rebate program
is comprehensive, the largest of all the MLPs To support oing growth, the RMLD is
looking for a possible recommendation rate increase from: ' 0 ,$0.003 /kwh.
RMLD's transition to start retiring an increasing portion of our cerhfic" that includes RECs
will have an impact on how we handle the energy
Part of this rate study will include looking at ouP,kolar neton ering policies and procedures
- how that impacts the rates, as well as the engfioring si addition, the rate study will
look at rates during off-peak evening hours, how they cart: ` drive EV growth.
RMLD's current rebate program 5!:*wsed on E t hargers, but we are exploring
opportunities for rates that will be a stronger motivator iii. tams of a net cost to operate on
an EV vehicle.
Components in RMLD's c gnergy, u4f1}�de y .city, and transmission. RMLD's
historical practice of s - ate
ha;t ed energy costs, now the RMLD will start
retiring them. As a r ,the cost. offset ft7,,. ergy costs will taper down. RMLD needs to
meet state mand compliance targets slllit in the updated Policy 30. There will be
quarterly updates oq`; ese transaetlons in the IOerest of transparency.
There is a s - onth I' 'maCely 13,840: certificates purchased by RMLD as part of
our purc ents the fourth quarter of 2020. RMLD is in the process of selling
them b; the 1 is y will be forfeited. These certificates are primarily Maine,
Verrile},�; Connecticut" Ma ,usetts class two and class one certificates. The sale of
the c"Ificates is expec*o net 0,000 to RMLD.
Mr. Phipps en addresse _"n update on renewable choice Commissioner Bita requested.
Renewable a is addr d In the latest revision of Policy 30. Originally, RMLD's goal
was to offer a° % no on option to the rate payers. Right now, given the way that
the RMLD is rete` " an annualized basis, all the rate payers will be participating up
to that annualized
The way the policy is structured, everybody participates. What we intended to do for the
renewable choice is to allow rate payers to participate incrementally above that annualized
line, and the goal would be a hundred percent non -carbon option. At some point we might
offer 75%.
RMLD is also structuring a 100% non -carbon option for rate payers. This would be
incremental above the existing annualized line. An appropriate name will be non -carbon
choice. The RMLD has had discussions since last summer with two of our larger industrial
customers under a label called green tariff. The intention was to provide them a mechanism
to report to their supply chain and corporate management the amount of their consumed
power that is green. There is a wind project that the RMLD is finalizing.
Page 1 8
The two likely "choice" mechanisms are retiring more and buying more. The retire option,
for example, 40% of 2021 RMLD's portfolio has certificates, and we will retire 23% based on
our Policy 30 then retire more certificates based on the monies collected from the choice
program.
The buy more option would have RMLD buy additional certificates above what we are
securing as associated certificates. The process, for the commercials, this relates to the
green tariff to use those funds to buy more certificates. A mixture of both of those will
support commercial, industrial, or residential customers. It will be another two months
before we finalize these ideas.
Mr. Pacino clarified that he must sign up as he understands this, similar to the solar choice
one and two. What would be the additional cost be to the rate pays? Mr. Phipps explained
that modeling and analysis is what they are working on. That cogoepends heavily in terms
of which certificates associated with the 100% non -carbon.
Chair Coulter asked for more clarification on the rebate igrara the presentations. Mr.
Phipps explained that this can presented in either the mgnthly org, quarterly updates in
terms of what those programs are because they will become a larger of the budget.
9. Renewable Choice Program Concept - Mr. Phig director of Integrateditlillill
Ms. Bita commented that in paying for
should maximize as much revenue as
residential and 61.8% commercial c tc
aggressive with respect to reducing
policy when 58.3% are willing to
stream and how can RMLD accelerate #
the National Renewable Energy Lab Ene
five to 20% of the custo rtiapate
more customers tend ustor
Director of the Welle umcip_.sFight
only 10% of their ayers were parti
on July 1, 2021. expect $QWo to
Director believes the,'., be, `
per year
consider
We can
eneweisre energ ^ '� Commission kid the RMLD
we can. In, 1:4 0 customer survey, 67% of
hers respond hat hat they would like RMLD to be
ouse gas errons. What is the appropriate rate
Can RMIjf,,. capture this potential revenue
a tra to clew energy. A study in 2018 by
gy foun when= ities use opt -in rates only
but w4%1 se'opt-out rates about 85% or
vers cap opt oul' (, say no to the premium. The
Dla t stated that they tried an opt -in program, but
Jpah g. They have an opt -out program that starts
85% Of their residents to remain enrolled. The
large to help them generate their goal of $500,000
Ws on municipal buildings. Should the RMLD Board
still protect those who are unwilling or more
Mr. t stated that i stford who is under National Grid as an IOU, offers a 5% rate
raise. not want it, do not have to take it and if you want, you can volunteer for
SO%. Cu' ers can say The RMLD can present it as an opt -out which will get more
participation IIEld funds to '" ture all this revenue that people are willing to give. If the
RMLD does Jus -1e opt ich is what the Policy 30 says, the data indicates that we will
not get a large patp{G{p {percent.
Mr. Stempe[k suggeslid waiting to see what Wellesley does, and if they achieve their goals.
On the opt -out process his concern is for people who do not have computers and do not
realize what opt -out or opt -in means.
Ms. Bita suggested in the absence of a computer, a customer can call in to opt -out. The
RMLD can provide other means of allowing customers to opt -out.
Mr. Talbot commented for the time of use meters, RMLD does an opt -in and only a few
hundred have enrolled after 10 years.
Chair Coulter commented that if you do an opt -in or opt -out program, it should be
communicated with a prolonged, precise, and clear communication plan to RMLD's
customers.
P., 19
Ms. O'Brien said that RMLD can perform analysis on this for opt -in or opt -out. She will speak
to the WMLP Director as well as other MLPs. In addition, she will call the DPU to ensure
compliance. This will be brought up at a future Board meeting.
10. Engineering & Operations Report - Mr. ]affari Director of Engineering & Operations
Mr. ]affari reported on the Engineering and Operations report for the months of March and
April. Mr. Jaffari stated that for the last five years the SAIDI, CAIDI, and SAIFI has been
outperforming the national and regional averages. The outages for the five-year cycle, were
primarily due to weather. Storms were bringing trees/poles down and damaging the
equipment.
Mr. Jaffari stated that in 2020 RMLD received two prestigious awards from American Public
Power Association (APPA). One is the Reliability Award, RMLD's reliability is one of the best
in New England. The other award received was the Reliabl41ess
` Power Provider (RP3).
This process involved APPA evaluating RMLD's policies, opnal procedures, business
model planning and organizational management against bei practices nationwide.
It has been our goal at RMLD to make sure that the, RMLD is aF4g the top performing
utilities. This is the fourth year in a row that we hawif received the 6liulficate of Excellence
in Reliability.
This is the second RP3 award in the history t(3he RMLD. The first award received in
2006 and the second 2020. The RP3 award than RMLD re is for a three= ar duration
(May 2021 through May 2024). RMLD received the,pla APPA designation on the four
key disciplines that was evaluated, reliability, sai�rJ,'� orkforce development, and the
system improvements. rw`
Mr. ]affari stated that out of the 21000 lic'Power 'UtilitiesTpie than 270 of them hold the
RP3 designation. RMLD was evaluate ern errs Aq B dem phics, reliability, physical
security, cyber security . requirements, safW'' S+R Firr force development and system
improvements, which''` g in 2016 with a Twenty Vear Reliability Plan. There are
three levels, diamorukl inum, 00 gold. RMLD received the platinum award.
Ms. Bita stated th"11 ' a RMLD tellable. In years, her power went out once for 30
minutes She asked the apoht plants in the state have not applied.
Mr. Jaffar r Onded t lunEarM . $ er utilities might not have the policies and
procedu `.. ter s such as RMLD's Twenty Year Reliability Plan.
imp
Mr. T t asked wha ,Qiffer4* from 2006 to 2020 when RMLD received the RP3 award.
Mr. Je}IFBri reflected thathen MS :O'Brien and he came to RMLD in 2014, there was no
long-terift, .plan, maintene, lack 'of reliability was overdue. They came up with a
maintenaniWprogram and ability plan, however, the requirements back then were not as
..
stringent as gjey are today th NERC, cyber, and physical security.
11. Business & Finat{ date through February 28 2021- Ms. Markiewicz
Director of Business & Finance
Ms. Markiewicz reported that last week the financial audit was completed by Melanson who
did an excellent job. They are preparing the draft audited financials which will be ready to
be presented for a meeting with the Audit Committees in May, then subsequently presented
to the CAB and the Board of Commissioners.
This week sales tax prepayment requirement was changed by the state of Massachusetts.
Typically, 20 days after the end of the month you must get your sales tax payment in. Now
you must pay on the 25th day in the current month for what you are expecting to be liable
for in sales tax. when you are looking at the accounts payable, you will see the sales tax
payment for this week, which was for March and next week for April. In 2021, we will have
13 payments.
Page 110
The Department of Public Utilities return is the next item to be completed. It will need the
Board of Commissioners signatures, as has been past precedent.
The Town of Reading payment is set for June 30, $1.2 million and estimated (right now),
2% net plant payments for June 30 at $827,000 for all four towns.
Ms. Markiewicz reported on RMLD's cash, which is $57.7 million, $24.7 million is in the
Operating Fund. There are subsets where the cash is allocated to construction, depreciation,
rate stabilization, etc. The RMLD strives for three times operating expenses in the Operating
Fund last year with almost $2 million under budget. Cash is a little higher because of the
timing. Last year we were a little bit over on the kilowatt sales as well. Currently, we are
handling a timing issue with cash.
Ms. Markiewicz then addressed the Accounts Payable process. T :,,- MLD does not have any
control whatsoever of cash. The Town of Reading writes al�yY� checks. Everything goes
through the Town of Reading for final review and scrutiny MLD receives invoices via
email. However, some come in through the mail and we uigho prevent that.
RMLD's accounting team manages this process. "
and sends them to managers of each the diwsio
they come back to us. The accounting team m
the invoice matches to a purchase order a
identified. "*i•.
Following this, the accounting team sends it
undergoes another process ofsign tures and
purchase order process. The Purcha nager
back to the accounting team. The a tea
to be paid. The applicable contract is ut,
everything that is ready to be processe 'r a
the batches off to the Ge anager forflnal a
she is satisfied with ;to be paid, Am
accounting team co s all the.,Wvoices
the Town of Reach o prepares the warra
ing tearm;4eceives the invoices
lal of g064,and services then
proper signatkos are secured,
a] ledger accotipt, is properly
o, "'Purchasing Manager where it
s through the requisition and
ieVll the purchases then sends them
prepA&5 the batches and gets it ready
amst thg= voice. Accounting prepares
eck, " the batches in and sends
'j he er eral Manager makes sure
it back "to the accounting team. The
together and prepares a check file for
Then the General M", r si Fant, W the processed invoices along with the
warrant, go mem Bo`4E.mrn issioners for signature. At that point, the
Commis k q ns and accourrting will answer. The member can only pull
invoiced e/she it is dulent or illegal.
Afte approval of th rrant, then the Town of Reading cuts the check. Before they cut
the ch RMLD receive .one calls from the Town with any questions. This is again to
scrutiniz check invoi ensuring a check and balance process. The Town of Reading
cuts a the days aft he Friday end date, which is the warrant date. The whole
process is qu ample d it is very important for everybody to be aware of how it
works. I ;,
The financial report "I4resents February, and the sales are flat. We are a slightly under
budget, and there is nothing significant to report.
Chair Coulter asked if there were any process improvements that you would suggest to
streamlining the process or to improve it? Ms. Markiewicz responded that in 2020 the
process went from paper to electronic. That was huge and took everybody's cooperation to
make that happen. The RMLD is continuously looking to streamline the process to make it
more simplistic, and the RMLD works with our vendors to avoid the stop and go. The RMLD
is continuously improving and ensuring that the vendors understand what the contract says
before they send us the invoices.
Mr. Pacino added that the process works much better now. It used to be three
Commissioner signatures were required to approve the warrant.
Page 1 11
12. RMLD Procurement Requests Requiring Board Approval -Mr. ]affari
Director of Engineering & Operations
IFB 2021-13 Voltage and Current Transformers
Mr. ]affari reported that last year, all the primary metering structures were tested
(approximately 68 - 70) system wide for integrity and accuracy of the metering. The
Findings indicated that the equipment was outdated requiring upgrades.
This bid included the PT (potential transformers) and CT (current transformers), which step
down the voltage from under from 13,800 to 120 volts and the current from thousands of
amps to five amps so it could be measured in the electronics and control. The bid was sent
to 14 distributors and vendors, four respondents. The lowesir responsible, responsive
bidders were Graybar $124,970 and WESCO for $28,224, the to ,pward is $153,194.
Mr. Pacino asked Ms. O'Brien to explain to Ms. Bita the a$on this comes before the
Commission. Ms. O'Brien stated that the RMLD presentfh6ciiids to the Board for their
,
approval under Chapter 30B for values that exceeds 00 in a*dance with Policy 9.
The RMLD will also discuss whether there is any dgyftlon from eitf a;,expense budget or
capital improvement plan that the Commission h proved when the s are exceeding
those amounts. Ms. O'Brien explained that Mr. presents most of the tips.
Mr. Pacino made a motion, seconded by Mr. St6inpec
Current Transformers be awarded to Graybar EFr
WESCO Distribution, Inc., for $ 11224 pursuant..
recommendation of the General Ma
Roll call vote: Mr. Stempeck, Aye, M , r Aye; Mr
Bita; Aye.
Motion carried 5:0:0. `°•rr
13. 2021 General ManacaftAS
Ms. O'Brien reporte at in
Hennessy, who arffi='h HR i
from a point systee nduete
healthier environme ith
process The "LD ha
going ford lis
rp, forme RMLD
rnives, galnpb Board
"ually to aaquarter
gnt in. .any
ha concept
she reported on for
'B 2021-13 for^:Voltage and
ny, Inc for $124,970 and
c. 164 § 56D, on the
Aye; Chair Coulter, Aye, Ms.
Board Commissioners O'Rourke and
approval to change her evaluation
ly check. This is envisioned to be a
type of repriontization discussion
internally with our senior managers
2020.
MsMs. en stated th' is , ant to ensure that the vulnerability was in the entire IT
.,
ure, which i es n only our IT business systems but our entire electric
system`�i,l ties into o mart grid system which is implemented under Mr. ]affan's
Twenty l foadmap that uces truck rolls, greenhouse gas emissions, and improves the
efficiency o response . There is a lot of IT that goes across an entire utility system
and it is a nont k:" a Class Cost of Service Study and rate study is another
component that is completed which is a large undertaking and is performed every
three years. This h very complicated this year with all Policy 30 and new Climate Bill
change this has an iri+'pact, when you factor that into the Class Cost of Service on a regular
basis and add some of the new ideas that the RMLD is going to look at as well, that must be
blended in that for the opt out type of programs.
With our process improvements, everything is getting better as the RMLD aligns with our
reorganizational study and all the changes that the RMLD made five or six years ago. There
is a lot of change with workforce management, new laws, vacancies, and change process of
succession planning talent acquisition/management going forward. This is quite different
from the electric utility industry where employees would remain for 30 years. There is more
that goes into the entire process of making sure that we have quality and proficiency of skill
sets working here because these are unique positions and safety is a priority. They are not
just electrical engineers; it takes another seven years of career development to learn
distribution and transmission engineering.
Page 1 12
For the Board goals, Ms. O'Brien is looking at changing the mission statement, because that
is RMLD's operational compass that the RMLD has right now.
Focusing on power supply is very important, but the RMLD is one of the largest electric
municipal systems in the state. The RMLD needs to take a step back when the public is
asking for analysis as well as the Board. She wants to ensure the quality is not
compromised. The staff needs the proper time, and she is seeking the Board's
understanding to help maintain a healthy environment on collaborative solutions.
Mr. Stempeck said that Ms. O'Brien has a great list of items to focus on and be reviewed by
the Board on a quarterly basis. There is always room for change and additions. Mr.
Stempeck proposed adding one more goal to the Board's respo, ability - as a Board, the
Commission makes sure that it is meeting the requirements of "y 19. That was due to
the fact we have been so focused on the payment to the 7 of Reading, it consumed
much of our time and effort. He suggested to the Board toL k to Policy 19 and review
it with a fine-tooth comb, this way to ensure that the C =risstan follows what is required
in it there and make any changes to reflect a more currelra
Mr. Talbot said that relative to Ms. O'Brien s
goals for the first time. Mr. Talbot notes that
about things that are more quantitative; how
RMLD measure the reduction of the annual f
Time of Use and similar policies. Maybe th
meeting to review this.
Ms. O'Brien stated there is no motioOkAMpte,
15.
a. Hccounrs ravaoie ravrou
Chair Coulter will cove.
Mr. Stempeck will c
Ms. Bita will coveC - Ac
Mr. Pacino offe.` o assist
to the process. °"nK
"14t
b. Next RMLD Boar
The aeAR&Ofto wil
c. t
Mr.
g Audit
of the F
the Commissic" looking at these
fission may wanttime to think
can reduce expense `show can the
do e RMLD increase adoption of
�r a committee or a separate
w,
ableWarrant.
on the Account Payable Warrant where she is new
late the Audit Subcommittee meeting with the Town
ie audit. Messrs. Pacino and Stempeck will be the
Subcommittee.
meeting.
Mr. Pacino added came across an article in the Boston Business Journal on May 20
of a presentation o .electrification. One of the speakers is the Technical Director of
Automotive Business Units at Analog Devices, noon to 1:00 pm. He will share the link with
Ms. O'Brien, then she will distribute the link.
16. Executive Session - Chair Coulter
At 10:00 PM Mr. Pacino made a motion, seconded by Mr. Talbot, that the Board of
Commissioners, go into Executive Session pursuant to Massachusetts G.L. c.164 section 47
D exemption from public records and open meeting requirements in certain instances to
discuss competitively sensitive issues regarding options for power supply and to consider
the purchase exchange, lease or value of real estate and to return to Regular Session for
the sole purpose of adjournment.
Page 1 13
Roll call vote: Mr. Stempeck, Aye; Mr. Pacino, Aye; Ms. Bita; Aye; Mr. Talbot, Aye; Chair
Coulter, Aye.
Motion carried 5:0:0.
17. Adjournment - Chair Coulter
At 10:38 PM Mr. Pacino made a motion, seconded by Mr. Talbot, that the Board of
Commissioners adjourn regular session.
Roll call vote: Mr. Stempeck, Aye; Mr. Pacino, Aye; Mr. Talbot, Aye; Ms. Bita; Aye; Chair
Coulter, Aye.
Motion carried 5:0:0.
Page 1 14
ATTACHMENT 2
ANNUAL REPORT CONFIRMATION
TO BE PRESENTED DURING THE MEETING
ATTACHMENT 3
CLASS COST OF SERVICE STUDY SUMMARY AND
RATES PRESENTATION
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Town of Reading, Massachusetts MDPU #292 supersedes and
Municipal Light Department replaces MDPU #208
Efficiency and Electrification Charge (EEC)
The Efficiency and Electrification Charge (EEC) per
billed, will be calculated based on the projected
programs expenses, divided by the projected annum
iicable to retail customers
:iency and electrification
kilowatt-hours.
Adjustments will be made periodically to accoi*for over and ung
and electrification program costs associated with an evolving mix o
customer participation in same.
;. < 1
'4
i
Ip
H�II
iuy'j r a 4, 9Ij >
J&
Rate Filed:
October 4, 2021
Effective:
On Billings on or After January 1, 2022
Filed By:
Coleco O'Brien, General Manager
ery of efficiency
ms and levels of
Town of Reading, Massachusetts
Municipal Light Department
MDPU # 293
Residential Time -Of -Use Schedule A3 Rate
Designation:
Residential Time -of -Use A3 Rate
Available in:
Reading, Lynnfield Center, North Reading, and Wilmington
Applicable to:
Individual residential customers for all domestic uses w service is taken through one
meter. Incidental commercial use, not exceeding 20% total energy used on the same
premises is permitted.
Character of service:
A.C. 60 cycles: single phase.
Customer Charge:
$4.51 per month
Distribution Energy Charge: n
$.05905 per Kilowatt-hour for all Ktinwatlultoyrs usage,'' r•
��IuA
Fuel Adjustment.
The bill for sery ay be increased oYdec `tas provided by the Time -
Of -Use Fuel Adl nt Clain, The Time -Of -Use Fuel A '" stment Clause will be
calculated for the p as to s:
n,�C ay th Fn ' ti 1 olidays, 2:01 PM to 10:00 PM
urboulder. day t ' gh Fnda B'I AM to 2:00 PM, weekends, and
" holidays.
'Off Peak and araiee` 10:01 PM to 6:00 AM
Purchase Pa",Capacity " Transmission Charge:
The bill for sera ereund ay be increased or decreased as provided by the Purchase
Power Capacity a ` an on Charge. The Purchase Power Capacity and
Transmission Charg collected on kWh delivered during the Peak period, Monday
through Friday, except to olidays, 2:01 PM to 10:00 PM.
Energy Efficiency and Electrification Charge:
The bill for service hereunder may be increased or decreased as provided by the
Efficiency and Electrification Charge.
Rate Filed: October 4, 2021
Effective: On Billings on or After January 1, 2022
Filed By: Coleen M. O'Brien, General Manager
Town of Reading, Massachusetts MDPU # 293
Municipal Light Department
Residential Time -Of -Use Schedule A3 Rate (cont'd)
Budget Billing:
The customers under this rate will have available to them a budget billing program under
which the customer is required to pay a levelized amount to the Department each billing
period during the calendar year. The specifics of this program are outlined in the
Department's General Terms and Conditions.
Low Income Discount:
The Customer Charge under this rate will be waiveNc of a low-income
customer's receipt of any means -tested public beneof eligibility for the
low-income home energy assistance program, or rtsm, for which
eligibility does not exceed 200 percent of the fgQp sed on a
household's gross income. In a program Nrt,'
h'bdrty for LIHEAP
exceeds 200 percent of the federal poverta household that is' a eligible
under LIHEAP shall be eligible for the loa elects iscoun[. e
responsibility of the customer to annually f r ,provided by t '.ity, the
continued compliance with the torWipg quahfica' °
k7
Farm Discount: '
Customers who meet the eligibility ra[reme forth Massachusetts
Department of Foonb
ture fof*� ing a the 'ness of agriculture or
farming, and upo the RnLp usetts Department of Food
and Agriculture,Soran ad 10%disc nt, prior to the RMLD
prompt payment dis and charges applicable on their monthly billing
stateme
M eading a ing:
Bills, er this s ill b ered monthly. A prompt payment discount of 15%
will be wed on the mer e and Distribution Energy Charge, only if the
entire bi . id -in -full b discount due date.
General Term*' Condi " S.
Service hereunde' bI the General Terms and Conditions which are incorporated
herein and are a part to schedule.
Rate Filed: October 4, 2021
Effective: On Billings on or After January 1, 2022
Filed By: Coleen M. O'Brien, General Manager
Town of Reading, Massachusetts MDPU # 294
Municipal Light Department
Renewable Choice Rate
Designation:
Renewable Choice Rate
Available in:
Reading, Lynnfield Center, North Reading, and Wilmington
Applicable to:
Individual residential and non-residential customers foses where service is taken
through one meter. >,"'
Character of service:
A.C. 60 cycles: single phase and three-phase.
Renewable Choice Rate:
Customers may choose to contribute an additi ameliance
their etc +ill towards
the acquisition and retirement of NEPOOL GI rttficates Cust7ers can
designate an amount to retire a/q 75%% their monthly kWh
consumption. Credit will be give*l9 on -carbon requirements, as
outlined in RMLD Policy 30.
Funds will be depo ' estgnated MILD ' " nd apjed to retire Certificates,
above the Anna me ' tin Policy 0 with the highest value
certificates first. retirem' .will be dot*' M a quarter asis consistent with RMLD
certificate manage rocedtims.
Gene rms and C ions: -
Set ce h der is subje the General Terms and Conditions which are incorporated
herein and arasn:Dart of this schedule.
Rate Filed: October 4, 2021
Effective: On Billings on or After January 1, 2022
Filed By: Coleen M. O'Brien, General Manager
MUNICIPAL LIGHT BOPRO
JEFFREY P. WECHSLER, CHAIR
SCOTT BENDER
PAUL L. CRISWELL
ELLEN L. KORPI
EDWARD J. STEWART III
FOR IMMEDIATE RELEASE
TOWN OF WELLESLEY
WELLESLEY, MASSACHUSETTS 02481
0
MUNICIPAL LIGHT PLANT
Wellesley Announces WECARE Program
Inftfaffve will Accelerate Financial Support for Emission Reduction Projects
DONALL H. NEWELL, DIRECTOR
4 MUNICIPAL WAY
WELLESLEY, MA 02481
781-235-7600
`Ax 781-237-1936
April 28, 2021 (Wellesley, MA) — The Town of Wellesley continues to be a leader in reducing the carbon footprint of our
community. Initiatives such as the Wellesley Municipal Light Plant (WMLP) voluntary renewable energy program make it easy
and affordable to reduce dependence on fossil fuels, increase energy stability, and preserve the planet. The WMLP is
Introducing the new Wellesley Electric Customers Accelerated Reduction of Emissions ("WECARE") program to help in these
efforts.
In 2020, Wellesley Town Meeting members adopted a resolution addressing the serious impact of climate change and
pledged to support efforts by the WMLP to expand customer participation in the renewable energy program by changing
the current opt -in enrollment to an opt -out program. Fees collected from the WECARE program will fund local renewable
energy projects chosen by the WMLP for their impact on greenhouse gas emissions (GHG) reduction in our community.
The WECARE program will add 4% to monthly electric bills for all residential and commercial accounts. For the average
customer using 750 kWh, this will add $4.60 to the monthly cost. Even with this increase, WMLP customers will enjoy having
their electric bills 46% lower than neighboring Massachusetts customers served by an Investor -Owned Utility. This additional
money will be used by the WMLP to purchase renewable electricity, and may also fund local projects such as:
• Community solar generation facilities;
• Power storage for peak electric use times;
• Infrastructure such as public charging stations for electric vehicles, and other similar programs.
"WECARE is an exciting new program dedicated to reducing the climate impact of the energy we use in Wellesley. Through
an additional optional charge on Wellesley electric bills, we will generate funds dedicated to the continued improvement of
Wellesley s environmental footprint. I'm thrilled about the opportunities this program will create for Wellesley to make energy-
related investments with meaningful impact. The product of analysis and advocacy, forged through the input of many residents
and elected representatives, WECARE will invest in a cleaner and greener future. We hope all residents will participate in this
program," said Jeff Wechsler, Chair of the Wellesley Municipal Light Board.
Beginning on July 1, 2021 all WMLP customers will be automatically enrolled in WECARE unless they choose not to
participate by "opting out' of this program. No action is required by residents who support the Town's decision to accelerate
GHG reduction. Residents who do not wish to participate can opt -out using one of two methods:
• Email the WMLP at wecore welleslevma.aov
• Call WMLP customer service at 781-235-7600
In addition to benefitting the environment, the program will also boost New England's economy by using local sources of
renewable power.
During Wellesley's 2021 Annual Town Meeting, Town Meeting members will consider new emission reduction goals. The
WECARE program will help accelerate financial support for projects that will assist the Town in meeting these goals.
For more information, visit the Wellesley Municipal Uaht Plant webpaaes.
-END-
Actually, you can,
That sounds like a small price to
pay for a cleaner, greener future for A
Wellesley. And all you have to do is {$
stay in WECARE (Wellesley Electric
Customers Accelerated Reduction of Emissions),
the exciting new program dedicated to reducing the
climate impact of the energy we use here in Wellesley.
It's about
5 a month,
WHAT WILL IT COST?
Last year, Town Meeting pledged to support the
Wellesley Municipal Light Plant's efforts to reduce
greenhouse gas emissions (GHG) in our community.
WECARE will add 4% to monthly electric bills
for all participants - about $4.60 for the average
residential customer. Even with this added
charge, WMLP customers' electric bills will still be
46% lower than the bills of customers in
neighboring Massachusetts towns serve
by an investor-owned utility.
Please support the
WECARE program.
WHAT WILL YOU GET?
You can breathe easier because this
additional money will be used by
the WMLP to purchase renewable
electricity, helping us cut down on greenhouse
gas emissions that pollute the air. It may also fund
other local projects such as the installation of
community solar generation facilities, battery
storage or public electric vehicle charging stations.
TO MOVE AHEAD, STAY PUT.
By vote of the Municipal Light Board, all WMLP
residential and commercial electric customers
will be automatically enrolled in WECARE
on July 1, 2021.
If you choose not to take part, you can OPT OUT by:
• Emailing wecare@welless�ma gov or
Calling WMLP Customer Service
at 781-235-7600.
Together, we can work
to create a cleaner, greener
future for Wellesley.
E�LES�EY
Please support the
WECARE program.
Together, we can work
to create a cleaner, greener
future for Wellesley.
The Town of Wellesley continues to be a leader in reducing the carbon footprint of our community. Initiatives such as
the Wellesley Municipal Light Plant (WMLP) voluntary renewable energy program make it easy and affordable to
reduce dependence on fossil fuels, increase energy stability, and preserve the planet. The WMLP is introducing the
new Wellesley Electric Customers Accelerated Reduction of Emissions ("WECARE") program to help in these efforts.
In 2020, Wellesley Town Meeting members adopted a resolution addressing the serious impact of climate change and
pledged to support efforts by the WMLP to expand customer participation in the renewable energy program by
changing the current opt -in enrollment to an opt -out program. Fees collected from the WECARE program will fund
local renewable energy projects chosen by the WMLP for their impact on greenhouse gas emissions (GHG) reduction
in our community.
The WECARE program will add 4% to monthly electric bills for all residential and commercial accounts. For the average
customer using 750 kWh, this will add $4.60 to the monthly cost. Even with this increase, WMLP customers will enjoy
having their electric bills 46% lower than neighboring Massachusetts customers served by an investor-owned utility.
This additional money will be used by the WMLP to purchase renewable electricity, and may also fund local projects
such as:
Community solar generation facilities;
Power storage for peak electric use times;
Infrastructure such as public charging stations for electric vehicles, and other similar programs.
If you desire to do more for this cause to reduce GHG in our community, this program offers an option for customers
to purchase all of their energy from renewable sources. Under this option, customers may elect to purchase 100% of
their energy from renewable sources at a rate of $0.044 per Kilowatt -Hour (kWh). Many customers are already doing
this under our voluntary renewable energy program, which will become part of the WECARE program.
Beginning on July 1, 2021 all WMLP customers will be automatically enrolled in WECARE unless they choose not to
participate by "opting out" of this program. No action is required by residents who support the Town's decision to
accelerate GHG reduction. Residents who do not wish to participate can opt -out using one of two methods:
Email the WMLP at wecareCdwelleslevma.gov
Call WMLP customer service at 781-235-7600
In addition to benefitting the environment, the program will also boost New England's economy by using local sources
of renewable power.
For more information, visit the Wellesley Municipal Light Plant weboages.
BOARD MATERIALS AVAILABLE BUT NOT DISCUSSED
AP and Payroll Questions for the 21-08-12 Board of Commissioners Book
AP:
On July 9th there were no Commissioner questions.
On July 16th there were no Commissioner questions
On July 16th there were no Commissioner questions
On July 23rd there were no Commissioner questions
On July 30th there were no Commissioner questions
On August 6th there were no Commissioner questions
Payroll:
On July 19'^ there were no Commissioner questions
On August 2nd there were no Commissioner question
This document will be included in the 2021-08-12 Board Book.
Town of Reading, Massachusetts
Municipal Light Department
Statement of Net Assets
6/30/2021
ASSETS
Current.
Unrestricted Cash
Restricted Cash
Restricted Investments
Receivables, Net
Prepaid Expenses
Inventory
Total Current Assets
Noncurrent.
Investment in Associated Companies
Capital Assets, Net
Total Noncurrent Assets
Deferred Outflows - Pension Plan
TOTAL ASSETS
LIABILITIES
Current
Accounts Payable
Accrued Liabilities
Customer Deposits
Advances from Associated Companies
Customer Advances for Construction
Total Current Liabilities
Non-current
Accrued Employee Compensated Absences
Net OPEB Obligation
Net Pension Liability
Total Non-current Liabilities
Deferred Inflows - Pension Plan
TOTAL LIABILITIES
NET POSITION
Invested in Capital Assets, Net of Related Debt
Restricted for Depreciation Fund
Restricted for Pension Trust
Unrestricted
TOTAL NET POSITION
Total Liabilities and Net Assets
2021 2020
$ 21,044,140 $
22,391,641
28,675,124
26,880,611
2,695,115
1,359,036
8,462,574
7,692,222
2,299,606
2,340,114
1.855.055
1.882.168
55,031,613 62,545,792
874,494 802,470
84,190,610 81,623,888
85,065,104 82,426,358
5,360,409 8,102,116
155,457,126 153,074, 265
7,243,068
7,023,631
405,281
361,285
1,438,125
1,361,015
200,000
200,000
2,399,961
1,975,590
11,686,435
10,921,522
1,968,355 2,471,374
7,166,506 7,094,569
12,054,935 14,610,001
21,189,796 24,175,944
2,652,103 1,964,276
35,526,334 37061742
84,190,610 81,623,888
8,922,391 7,108,736
6,592,771 6,365,431
20,223,020 20,914,469
119,928,792 116,012,524
$ 155,457,126 $ 153.074265
Town of Reading, Massachusetts
Municipal Light Department
Business Type Proprietary Fund
Statement of Revenues, Expenses and Changes in Fund Net Assets
6/30/2021
Month
Month
Year to Date
Year to Date
Percent
Current Year
Last Year
Current Year
Last Year
Change
Operating Revenues
Base Revenue
$ 2,360,725
$
2,136,870
$ 13,260,408
$ 12,824,424
3.4%
Fuel Revenue
2,326,933
1,859414
12,305422
11432,039
76%
Purchased Power Capacity & Transmission
2,915,551
2,512,148
16,026601
15,311,375
4.7%
Forfeited Discounts
62,563
66,223
392,092
392,790
(0.2%)
Energy Conservation Revenue
57,744
49,188
312,866
299,492
4.5%
NYPA Credit
(117,535)
(131,377)
(608,862)
(597,383)
1.9%
Total Operating Revenues
7,605,981
6492,466
41,688,527
39,662,737
5.1 %
Expenses
Power Expenes:
547 Purchased Power Fuel
2,201,905
1,986,711
13,434,270
13,303,416
1.0%
555 Purchased Power Capacity
1379,315
1,466,444
8,674,381
9,695,489
(10.5%)
565 Purchased Power Transmission
1,428,730
1,123,148
6,940,671
5,636,553
23.1%
Total Purchased Power
5,009,950
4,576,302
29,049,322
28,635,459
14%
Operations and Maintenance Expenses:
580 Supervision and Engineering
96,823
86,466
512,352
496,740
3.1%
581 Station/Control Room Operators
53,876
29,803
242,249
243,096
(0.3%)
582 Station Technicians
56,861
50,162
327,120
192,776
69.7%
583 Line General Labor
57,211
30,850
303,121
284,594
6.5%
586 Meter General
18080
5,980
84,904
78,559
8.1%
588 Materials Management
39,535
32,715
211,548
214,955
(1.6%)
593 Maintenance of Lines - Overhead
21,656
17,854
167,104
150,186
11.3%
593 Maintenance of Lines - Tree Trimming
12,197
48,839
149,336
199,244
(25.0%)
594 Maintenance of Lines - Underground
(1,164)
(4,259)
5,335
17,209
(69.0%)
595 Maintenance of Line - Transformers
16,711
28,302
76,139
60,216
264%
598 Line General Leave Time Labor
31,201
12,491
158,115
182,589
(134%)
Total Operations and Maintenance
402,988
339,203
2,237,324
2,120,165
5.5%
General & Administration Expenses.
903 Customer Collections
81,154
126,668
520,963
632,222
(17.6%)
904 Uncollectible Accounts
8,750
8,750
52,500
52,500
0.0%
916 Energy Audit
83,173
102,562
354,418
322,667
9.8%
916 Energy Conservation
140,275
48,351
751,530
378.927
98.3%
920 Administrative and General Salaries
196,905
155,988
954,650
1,036,607
(7.9%)
921 Office Supplies and Expense
351
345
5,715
3,394
684%
923 Outside Services - Legal
48,510
55,940
151,307
157,076
(3.7%)
923 Outside Services - Contract
22,174
59,625
143,357
105,349
36.1%
923 Outside Services - Education
2,631
3,602
10,421
22,685
(54.1%)
924 Property Insurance
33,111
29,739
229,523
204,951
12.0%
925 Injuries and Damages
3,557
3,268
11,584
28,302
(59.1%)
926 Employee Pensions and Benefits
(71,426)
238,821
1756,602
1,974,559
(11.0%)
930 Miscellaneous General Expense
24,476
10,256
211,090
95,143
121.9%
931 Rent Expense
13,888
15,146
108,553
103,252
5.1%
933 Vehicle Expenses
325,646
14,652
446,835
78,136
471.9%
933 Vehicle Expenses - Capital
(305,560)
(38.041)
(452,280)
(157,124)
1828%
935 Maintenance of General Plant
2,508
(39.063)
289,740
337,225
(14.1%)
935 Maintenance of Building & Garage
67,250
133,495
398,693
638,218
(37.5%)
Total General&Administration Expenses
677,373
930,103
5,945,201
6,014,091
(1.1%)
Ending Net Assets $ 120,120,880 $ 116,655,083 $ 119,928,792 $ 116,012,524 3.4%
Town of Reading, Massachusetts
Municipal Light
Department
Business Type Proprietary
Fund
Statement of Revenues, Expenses
and Changes in Fund
Net Assets
6/30/2021
Other Operating Expenses'.
403 Depreciation
406,980
391,601
2,441,878
2,349,603
3.9%
408 Voluntary Payments to Towns
137,954
133,918
827,718
803,505
3.0%
Total Other Expenses
544,933
525,518
3,269,596
3,153,108
37%
Operating Income
970,736
121,339
1,187,084
(260,086)
(556.4%)
Non Operating Revenues (Expenses).
415 Contribution m Aid of Construction
419 Interest Income
8,106
39,767
90,992
184,408
(507%)
419 Other
17,718
(5.928)
578,771
654,773
(11.6%)
426 Return on Investment to Reading
(206,709)
(206,709)
(1,240253)
(1,240,253)
(0.0%)
426 Loss on Disposal
-
-
-
-
4311ntemstExpense
(3,783)
(2,332)
(22,614)
(35,263)
(35.9%)
Total Non Operating Revenues (Expenses)
(184,668)
(175,202)
(593,104)
(436,336)
35.9%
Change in Net Assets
786,068
(53,863)
593,980
(696,422)
(185.3%)
Net Assets at Beginning of Year
119,334,812
116,708,946
119,334,812
116,708,946
2.2%
Ending Net Assets $ 120,120,880 $ 116,655,083 $ 119,928,792 $ 116,012,524 3.4%
Town of Reading, Massachusetts
Municipal Light Department
Business Type Proprietary Fund
Statement of Budgeted Revenues, Expenses and Changes in Fund Net Assets
6/30/2021
Operations and Maintenance Expenses
580 Supervision and Engineering
Actual
571,597
BUDGET
(59,24,1)
Over/(Under)
Overl(Under)
581 Station/Control Room Operators
Year to Data
248,968
Through June
2021
Budget $
Budget %
Operating Revenues
327,120
224,007
103,113
46.0%
583 Line General Labor
Base Revenue
$ 13,260,408
(170,861)
$ 14,146,494
(42.7%)
$ (886,086)
(6.3%)
Fuel Revenue
12,305,422
151,307
13,947,227
(7.8%)
(1,641,805)
(11-8%)
Purchased Power Capacity & Transmission
16,026,601
17,732,774
(7.2%)
(1,706,173)
(9.6%)
Forfeited Discounts
392,092
(91.9%)
464,502
(40.2%)
(72,410)
(15.6%)
Energy Conservation Revenue
312,866
28,527
326,997
(67.5%)
(14,131)
(4.3%)
NYPA Credit
(608,862)
(76,401)
(571,787)
(86.8%)
(37,075)
6.5%
Total Operating Revenues
41,688,527
108,553
46,046.207
(33.0%)
(4,357,681)
(9.5%)
Expenses
223,939
(65,824)
(29.4%)
(452,280)
Total Operations and Maintenance Expenses
Power Expenses:
3,010,876
1551%
(773,552)
(25.7%)
57,852
555 Purchased Power Fuel
13,434,270
466,737
13,375,440
(68,044)
58,830
0.4%
555 Purchased Power Capacity
8,674,381
(448,019)
8,843,684
(169,303)
(1.9%)
565 Purchased Power Transmission
6,940,671
8,889,090
(1,948,419)
(21.9%)
Total Purchased Power
29,049,322
31,108,214
(2,058,892)
(6S%)
Operations and Maintenance Expenses
580 Supervision and Engineering
512,352
571,597
36,269
(59,24,1)
(10.4%)
52,500
581 Station/Control Room Operators
242,249
248,968
354,418
(6,719)
(2.7%)
53,708
582 Station Technicians
327,120
224,007
103,113
46.0%
583 Line General Labor
303,121
529,380
(170,861)
(226,259)
(42.7%)
10,000
586 Meter General
84,904
92,066
151,307
(7,162)
(7.8%)
(97,193)
588 Materials Management
211,548
227,982
(16,434)
(7.2%)
10,421
593 Maintenance of Lines - Overhead
167,104
279,400
(91.9%)
(112,296)
(40.2%)
593 Maintenance of Lines - Tree Trimming
149,336
459,424
28,527
(310,088)
(67.5%)
(59.4%)
594 Maintenance of Lines - Underground
5,335
40,448
(76,401)
(35,112)
(86.8%)
253,145
595 Maintenance of Line - Transformers
76,139
113,665
108,553
(37,526)
(33.0%)
2,553
598 Line General Leave Time Labor
158,115
223,939
(65,824)
(29.4%)
(452,280)
Total Operations and Maintenance Expenses
2,237,324
3,010,876
1551%
(773,552)
(25.7%)
General & Administration Expenses:
903 Customer Collection
904 Uncollectible Accounts
916 Energy Audit
916 Energy Conservation
920 Administrative and General Salaries
921 Office Supplies and Expense
923 Outside Services - Legal
923 Outside Services - Contract
923 Outside Services - Education
924 Property Insurance
925 Injuries and Damages
926 Employee Pensions and Benefits
930 Miscellaneous General Expense
931 Rent Expense
933 Vehicle Expense
933 Vehicle Expense- Capital Clearing
935 Maintenance of General Plant
935 Maintenance of Building & Garage
Total General & Administration Expenses
520,963
484,694
36,269
7.5%
52,500
52,500
-
0.0%
354,418
300,710
53,708
17.9%
751,530
607,018
144,512
23.8%
954,650
1,125,511
(170,861)
(15.2%)
5,715
10,000
(4,285)
(42.8%)
151,307
248,500
(97,193)
(39.1%)
143,357
254,200
(110,843)
(43.6%)
10,421
128,911
(118,490)
(91.9%)
229,523
244,850
(15,327)
(6.3%)
11,584
28,527
(16,943)
(59.4%)
1,756,602
1,633,003
(76,401)
(4.2%)
211,090
253,145
(42,056)
(16.6%)
108,553
106,000
2,553
24%
446,835
194,300
252,535
130.0%
(452,280)
(177,272)
(275,008)
1551%
289,740
231888
57,852
24.9%
398,693
466,737
(68,044)
(14.6%)
5,945,201
6,393,220
(448,019)
(7,0%)
Town of Reading, Massachusetts
Municipal Light Department
Business Type Proprietary Fund
Statement of Budgeted Revenues, Expenses and Changes in Fund Net Assets
6/30/2021
Other Operating Expenses
403 Depreciation
2,441,878
2,458,173
(16,295)
(0.7%)
408 Voluntary Payments to Towns
827,718
827,230
488
0.1%
Total Other Expenses
3,269,596
3,285,403
(15,807)
(0.5%)
Operating Income
1,187,084
2,248,495
(1,061411)
(472%)
Non Operating Revenues (Expenses):
415 Contribution in Aid of Construction
-
150,000
(150,000)
(100.0%)
419 Interest Income
90,992
250,000
(159,008)
(63.6%)
419 Other Income
578,771
442,500
136,271
30.8%
426 Return on Investment to Reading
(1,240,253)
(1,240,253)
-
0.0%
426 Loss on Disposal
-
(50,000)
50,000
(100.0%)
431 Interest Expense
(22,614)
(22,500)
(114)
0.5%
Total Non Operating Revenues (Expenses)
(593,104)
(470,253)
(122,851)
26.1%
Net Income $
593,980
$
1,778,242
$
(1,184,261)
(66.6%)
From: Maureen Sullivan
To: Ed, M,lsg
Q: Paula o" teary: J,,,,rY_Fun1
Subjeoo Surplus Update July 2021
Date: Monday, August 2, 20218:39:28 AM
Good morning Erica,
I am sending this email to inform you that there were NO Surplus Items of Substantial Value that
were disposed of in July 2021.
Thank you,
Maureen
Maureen Sullivan
Assistant Materials Manager
Reading Municipal Light Department (RMLD)
230 Ash Street
Reading, MA 01867
Tel. No. 781-942-6441
Email: msullivanPrmld.com
Town of Reading
r' Meeting Minutes
Board - Committee - Commission - Council:
RMLD Board of Commissioners
Date: 2021-07-19 Time: 7:30 PM
Building: Location:
Address: Session: Open Session
Purpose: General Business Version: Final
Attendees: Members - Present:
Mr. Robert Coulter, Chair; Mr. Philip Pacino, Vice Chair; Mr. John Stempeck,
Commissioner; Mr. David Talbot, Commissioner; Ms. Marlena Bita,
Commissioner
Members - Not Present:
RMLD Staff: Ms. Coleen O'Brien, General Manager; Mr. Greg Phipps, Director
of Integrated Resources; Ms. Wendy Markiewicz, Director of Business
Finance; Mr. John McDonagh, Assistant Director of Engineering and
Operations; Ms. Erica Morse, Executive Assistant; Karen Herrick, Select
Board, Reading; Mr. George Hooper, Commissioner, CAB, Wilmington.
Others Present:
Public: Mr. John Rogers, 39 Tower Hill Road, North Reading
Minutes Respectfully Submitted By: Philip Pacino, Secretary Pro Tem
Topics of Discussion:
DUE TO GOVERNOR BAKER'S MARCH 10, 2020, ORDER SUSPENDING CERTAIN PROVISIONS
OF OPEN MEETING LAW, G.L. c. 30A, §20 AND THE JUNE 16, 2021, ACT EXTENDING CERTAIN
COVID-19 MEASURES, THIS MEETING WAS HELD REMOTELY VIA ZOOM
I. Call Meetino to Order
Vice Chair Pacino called the meeting to order at 7:34 PM and announced that the meeting
would be held on Zoom and live on RCN and YouTube.
Opening Remarks:
Vice Chair Pacino read the RMLD's Code of Conduct.
Vice Chair Pacino served as the Secretary for the meeting.
Introductions
Vice Chair Pacino welcomed everyone to the meeting of the RMLD Board of Commissioners
and asked all attendees to identify themselves.
2. Public Comment
Liaisons to RMLD Board
Ms. Herrick stated that she will continue to be the Liaison to the Select Board and provided an
update. Ms. Herrick commended the RMLD for the information and assistance provided to
customers, such as herself, who are new to owning electric vehicles.
Page I 1
The RMLD and representatives from Reading, (Ms. Herrick; David Zeek, RCAR Chair; and
Mark Dockser) testified at the telecommunications committee hearing. Ms. Herrick thanked
Ms. O'Brien for testifying live, as well as, facilitating RMLD service areas to join green
communities.
Ms. Herrick provided an update on Reading's Green Communities application. Recently
changed regulations now allow applications on a rolling basis. Reading plans to apply in
October; the EV policy has been approved and the stretch code adopted.
Ms. Herrick noted that the Town of Reading is discussing getting a Sustainability Director.
Mr. Talbot asked a question on Reading's green communities' application, and the process on
handling peak periods. Ms. Herrick responded that if approved, the Town will ask the RMLD
for help getting started and collecting $0.50 per account which will be forwarded to the
renewable trust. Ms. Herrick will look further into a policy or process around shredding the
peak.
Public Comment
Mr. Rogers attended the meeting on behalf of GRACE (Greater Reading Alliance for Clean
Energy) and expressed his excitement and appreciation of the presentation around the
Renewable Choice Program, Mr. Rogers recommended that MA Class 1 be defined more
simplistically for people.
Mr. Pacino made a comment about the UN Report and climate change.
3. Report on Citizens' Advisory Board Meeting on July 19, 2021
Mr. Pacino reported that the Citizens' Advisory Board presentations mirrored tonight's Board
of Commissioners presentations.
At this point Chair Coulter assumed the leadership position and thanked Mr. Pacino for
starting the meeting in his stead.
4. Approval of Board Minutes
No discussion occurred.
Mr. Pacino made a motion, seconded by Mr. Stempeck,_[hat the Board of Commissioners
approve the meeting minutes of the February 24, 2021, meeting on the recommendation of
the General Manager.
Roll call: Mr. Pacino, Aye; Mr. Stempeck, Aye; Mr. Talbot, Aye; Chair. Coulter, Aye; Ms. Bita,
Abstain
Motion Passed: 4:0:1
5. General Manner's Report (Taken out of order)
Annual Report Confirmation
Ms. O'Brien reported on the CY20 Annual Report. The report will be distributed to the towns,
as well as, posted on the website.
A recap of the 2020 highlights and 2021 year to date progress will be made at the fall
Reading town meeting.
Discussion ensued on the Annual Report around content relating to Power Supply, the Climate
Bill and Climate Bill compliance.
Mr. Talbot suggested modifications to the CY20 Annual Report that accurately reflect where
the RMLD plans to go in accordance with the Climate Bill. Ms. O'Brien noted that this report is
for CY20, before the Climate Bill was enacted, but indicated that there are notations regarding
the pending climate bill with projections lines of compliance on the diagram.
Page 1 2
Mr. Phipps noted that for CY20 retirement verses sales of certificates were not segregated.
Mr. Stempeck noted that a4nnual reports reflect the previous year and the CY21 report would
reflect what Mr. Talbot is requesting. Mr. Rogers suggested the RMLD note what RECs were
sold vs. retired.
Discussion ensued on further modifications to the Annual Report.
Ms. O'Brien clarified what revisions the RMLD need to address; it was agreed that a revision
with two pages would be presented.
The Board of Commissioners agreed to table the motion to approve the CY20 Annual Report
Mr. Pacino made a motion, seconded by Mr. Talbot, to table the motion until the August 2021
meeting at which point the concerns that have been raised by Mr. Talbot can be addressed
and re -presented to the Board at that Meeting.
Roll call: Mr. Pacino, Aye; Mr. Talbot, Aye; Chair Coulter, Aye; Mr. Stempeck, Nay; Ms. Bita,
Aye.
Motion Passed: 4:1:0
Board Agenda Quarterly Guideline Review
Ms. O'Brien presented the proposed quarterly BOC document, which outlines a meeting
agenda schedule with rotating and quarterly updates.
The intent of the document is to ensure policy compliance; to ensure that quality
presentations are afforded proper opportunity for discussion; to ensure proper consideration
for new information requests; and to ensure efficient use of time.
MassEVIP Grant Update
Ms. O'Brien noted that the Board was provided With the updated changes that were sent to
the State regarding the MassEVIP Grant, awarded to RMLD. The locations are as follows:
Wilmington Library and Town Hall; Reading Main Street and Haven, Reading Train Depot, and
the Reading Library pending final confirmation of feasibility of direct drilling a the Library site.
Moving forward, the RMLD will look at additional areas for EV chargers with town assigned
construction contacts.
Green Communities
Ms. O'Brien noted that the best -case scenario in relation to Green Communities is if all four of
RMLD's service areas would be allowed to join based off one IOU meter (Wilmington) within
the RMLD MLP service territory. As such, each of the service areas should have the
opportunity to progress towards adopting green communities' criteria at their own pace.
Community Update
Ms. O'Brien reported on the community update.
Recent Events
• The RMLD attended the Wilmington Farmers Market on June 27, 2021.
•. The RMLD held a Virtual Electrification Presentation on June 7, 2021, In
partnership with the Wilmington, Reading, and North Reading libraries. The
recording is available on RMLD's website and has been shared with the four
community tv stations.
Upmmino community events
• Reading Library Vehicle Day - 8/10/2021
• Reading Fall Street Faire - 9/12/2021
• North Reading Town Day - 10/3/2021
Upcoming RMLD events
• Public Power Week Open House 10/7/2021 3-6pm; rain date 10/14
• Electric Car Show - 8/15/21 loam -fpm at Wilmington farmers market
Page 1 3
. Heat Pump Workshop 11 - virtual, fall date TBD
6. Review of Policy 19• Board of Commissioners
Ms. O'Brien presented Policy19: Board of Commissioners, Revision 15
Mr. Pacino suggested to revise the language in Policy 19 to allow for the Vice Chair to serve
as the Secretary.
Mr. Pacino suggested to revise the language in Policy 19 to state that if the Chair and Vice
Chair are not available then the most senior member of the Board will serve as the Chair for
that meeting. Mr. Stempeck asked if this would cause an issue with quorum; Mr. Pacino
replied that it would not.
In reference to Chair term length, Mr. Pacino advocated for a maximum of a two-year term.
Mr. Stempeck stated his support for a one-year term length as it allows for a rotation of
people. Chair Coulter commented that with a three-year term and a two-year position there is
more opportunity to get things accomplished. Mr. Talbot stated that he agrees with a one-
year term. It was noted that the one-year term forces a rotation.
The Board of Commissioners agreed to modify Policy 19 language, as edited during the
meeting, to allow for the Vice Chair to be Secretary.
The Board of Commissioners agreed to modify Policy 19 language, as edited during the
meeting, that if the Chair is not present then the Vice Chair will act as Chair. If both the Chair
and Vice Chair are not present then the most senior member, as defined by length of time on
the Board, will act as Chair.
Mr. Talbot questioned the need to include the language referencing M.G.L 30A 20 under
meetings and procedures, as this language is already implicit in the state law.
Discussion ensued on deliberation and M.G.L 30A 20.
Ms. O'Brien noted that the intent of this section was to clarify serial communications and that
Open Meeting Law does not apply to the General Manager, it applies to the public body. The
department extracts sections of the law that are referenced in the policies to make those
pieces of the law more accessible.
Mr. Stempeck noted that he agrees with Mr. Talbot; in the past the Board has put "not for
deliberation" in any emails that are sent out for educational or informational purposes. Ms.
O'Brien responded that the language in Policy 19 is only speaking to deliberation and does not
relate to education or informational emails. Mr. Talbot stated that the Board may send
documents but can not offer an opinion on those documents.
No modifications to the presented language in Policy 19, Section III referencing M.G.L 30A 20
and deliberation were made during the meeting.
Mr. Talbot commented on the General Manager performance review process, noting that the
language implies that the Board of Commissioners is only allowed to evaluate the General
Manager on the goals. Ms. O'Brien responded that the language states that the Board will give
the Manager a performance appraisal based on performance and satisfaction of agreed upon
goals and tasks.
No modifications to the presented language in Policy 19, Section C referencing the General
Manager performance review process were made during the meeting.
Mr. Talbot commented on the need for the language in the Public Comment section. Mr
Page I n
Stempeck responded that this language was a result of a past meetings where Public
comment become disrespectful and unproductive.
Ms. O'Brien noted that some of the language referenced in Policy 19 is to clarify questions
from new commissioners that have come up repeatedly.
No modifications to the presented language in Policy 19 referencing Public Comment were
made during the meeting.
Mr. Talbot made a comment on the language regarding the quarterly outside expenditures
report. Ms. O'Brien noted that the Board quarterly schedule, as previously presented, was to
demonstrate that the RMLD will provide quarterly reports regardless of the requirements in
Policy 19. The word "may" was added to provide flexibility with policy compliance in case of
department scheduling conflicts or the Chair removing an agenda item.
Mr. Pacino made a suggestion to add verbiage relating to Public Comment stating comments
must be respectful and appropriate.
The Board of Commissioners agreed to modify Policy 19 language, as edited during the
meeting, to add the sentence "The Chair expects all comments to be respectful and
appropriate" in Section 5 Letter F,
Mr. Pacino made a motion, seconded by Mr. Stempeck, to move that the Board of
Commissioners approve Policy 19: Board of Commissioners, as edited and presented, on the
recommendation of the General Manager.
Roll call: Mr. Pacino, Aye; Mr. Stempeck, Aye; Mr. Talbot, Aye; Chair. Coulter, Aye; Ms. Bita
Aye.
Motion Passed: 5:0:0
7, 11 Report AttaCinment 4
Mr. Phipps reported on the load snapshot (Enclosed Slide 3). Mr. Phipps highlighted rate class
characteristics. The residential rate class is the largest; has the broadest geography; and is
the most dynamic both seasonally and hourly. Residential tends to show monthly peaks in
January, February, and August. Commercial and industrial rate classes are smaller, are less
broad in geography, and are more consistent seasonally (spider chart, slide 3).
Although the past decade saw an annual load decline of 1%, this trend began to change in
2020 with a 0.0% annual growth. This is due to slowing efficiency gains, the beginning of
electrification, and business growth. Mr. Phipps cited the LED light replacement program as an
example of slowing efficiency gains. Load growth is beneficial to ratepayers, as it diminishes
upward pressure on rates. As the load begins to grow over the next five to ten years, the
RMLD will transition from a period of network and maintenance to a period of equipment build
out.
Mr. Phipps reported on the power supply update (Enclosed Slide 4). The RMLD needs to
purchase power annually to fill in expiring contracts; this year there is the additional
consideration of load growth.
In January, March, and May of 2021, RMLD executed three TFAs (Transaction Facility
Agreements). The IRD team runs regular analysis, to replace expiring contracts and fill load
growth. Through the TFA program, RMLD purchased approximately 19% of total power, each
across four-year spans. Mr. Phipps noted that wholesale prices are increasing. The RMLD will
present the TFA report on a quarterly basis.
Mr. Phipps provided an update on the hydro contracts that are in process (Enclosed Slide 4).
The RMLD completed the environmental and social justice due diligence report for Dahowa
and is finalizing the contract. The economic and social due diligence report for the second
hydro project is in process. The Connecticut hydro is on schedule to sign in November.
Page 1 5
Mr. Phipps stated that the Climate Bill's electrification requirements will increase load for New
England; MA is the most aggressive in implementing these requirements and is a significant
portion of the regional growth. Simultaneously, the Climate Bill calls for the removal of fossil
fuel -based power supply including natural gas. This will result in a load increase coinciding
with supply decrease, which will lead to increased competition for supply and especially for
non -carbon supply. This emphasizes the importance of the RMLD's aggressive push for non-
carbon and hydro supply, now.
In this context, RMLD is actively searching for utility scale solar and updating the residential
solar incentives within the network. As offshore winds become available, the RMLD will work
to secure contracts, along with other MLPs through ENE. The RMLD is actively looking to
expand storage to allow for improved matching of load with renewable generation. Mr. Phipps
noted that the battery storage project, which is part of RMLD's Shred the Peak Program, has
been financially beneficial.
Mr. Phipps provided the 2021 Ql quarterly report on certificates (per Policy 30) (Slide 5).
RMLD opened with a 0 balance in CY21, as all certificates were retired or sold in CY20. In this
quarter the department acquired 60,000 certificates (Minted 7/15/21) accounting for 43% of
the power purchase portfolio; the department will retire all of the EFECS and a few others. In
accortlance with the requirements set in Policy 30 and the Climate Bill, each year the RMLD
will increase the level of certificates retired by 3%; each quarter the RMLD will aim for an
annual goal of 23% for CY21, 26% for CY22, etc.
Regarding the balance of certificates (per Policy 30), the RMLD is adopting an operating
procedure where 800/a of certificates that are earmarked to be sold, will be sold as soon as
possible, and the remaining 20% will be banked in RMLD's NEPOOL GIS account for later
transactions. This quarter will likely net over $140,000 in certificate sales. This provides a
23% retirement each quarter in 2021, despite load seasonality.
Mr. Phipps reported on rates, cost of service, incentives, and choices (slide 6). The rates are
designed to cover the cost of providing service and the expenses associated with that
(energy, transmission, and operating costs etc.) Mr. Phipps noted that funds must be
provided for electrification and efficiency. RMLD's goal is to motivate customers to evaluate
and change their use and the resultant cost. This can be accomplished by providing the
customer with more options and data.
Mr. Phipps reported on the cost of service and peak shift (slide 7). The hour that the peaks
occur needs to be considered when fairly allocating cost across rate class, as it relates to
capacity and transmission (which accounts for 40% of RMLD costs). Mr. Phipps noted the
impact of solar power is variable depending on weather; on a sunny day, solar reduces the
net load in the middle of the afternoon which typically pushes the peak to a later hour.
Mr. Phipps provided an illustration on rate drivers (Slide 8). The last rate increase that the
RMLD has done was in July of CY18 (1-2%); the rates have been stable over the past several
years. This fact, along with the load growth changes, calls for a rate discussion in CY21. Mr.
Phipps noted that some of the planned capital expenses and projects are already in the
current rates, and the rate stabilization fund may continue to absorb a portion of the rates.
When considering the four cost of service factors, the estimated increase is approximately
$6.03 to the average residential monthly bill (820 kWh / $121)
Mr. Phipps noted the comparison of other MLP certificate retirement programs in comparison
to RMLD's suggested programs (slide 9). The relative additional costs are similar to what
other MLPs are doing, except that Wellesley is introducing an opt -out program.
Mr. Phipps proposed Renewable Choice and Non -Carbon Choice programs (slide 10) and
stated that the goal is to offer 100% options for rate payers, in addition to the 23% that all
rate payers contribute now for retiring certifications in accordance with Policy 30.
Page 1 6
Renewable choice focuses on Mass Class 1 certificates which are currently trading around $40
/ certificate. Non - Carbon choice focuses on "other certificates" inclusive of Class II and Tier
1; the average cost of others in the portfolio is $11 / certificate. To manage the program and
maintain stability, the department is proposing a one-year commitment for both programs.
Mr. Pacino asked a question about certificate numbers; could a person buy more than eight
certificates? Mr. Phipps responded that the intent is to reach 100%, and although it has not
been considered by the Department, RMLD can investigate customers buying more than
100%.
Mr. Pacino asked a follow up question on buying certificates on the open market. Mr. Phipps
responded that the RMLD's intention is to retire certificates that the Department has in the
NEPOOL GIS Account. If needed, RMLD would go to the open market to buy additional
certificates, and then retire them. With the funds from the two programs, the RMLD is looking
to retire certificates above the 23% line for 2021.
Mr. Pacino asked why the department is recommending opt in verses opt out. Mr. Phipps
responded that the recommendation comes after reviewing other MLPS programs and initial
feedback of opt in and opt out. The Renewable Choice represents a significant increase and if
the Board suggests an opt out program, then a tremendous amount of communication will be
required. The RMLD needs to consider the customer point of view. The department has
received calls from the public about the direction of the opt -In / opt -out, to which RMLD is
responding that the topic is open for discussion and is encouraging anyone with an opinion to
attend the Board meetings to voice that opinion.
Mr. Pacino noted there is a large difference between Taunton and Reading; what are they
doing differently in terms of cost per kWh. Mr. Phipps noted it is the type of certificate that
they are retiring and if they are funding them 100%. Taunton is not funding for 100%
retirement and instead is collecting a fund and then retiring as many as that fund will retire,
where RMLD is proposing to fund retirement of 1009/o for that customer set.
Ms. Bits asked Mr. Phipps about participant rates from other MLPs; Mr. Phipps responded that
the department would try to provide that information at the August session.
Chair Coulter asked about the departments' plan to market the suggested programs. Mr.
Phipps responded the focus is to create a program that will encourage participation. The
department is assuming those who are focused on climate change and knowledge of MA Class
1 certificates will lean towards Renewable Choice, whereas the non -Carbon choice may appeal
to those who would like to support the initiative but would prefer to check a box. The RMLD is
encouraging an opt in program for the non -carbon choice which will likely yield high
participation.
Chair Coulter asked a follow up question on if the suggested programs tie in to a customer
adding EV or solar. Mr. Phipps responded the department has not considered forcing someone
into a program when they add EV or solar. Mr. Phipps cited the example of the time of use
requirement for EV chargers; and a new time of use option that will be presented at the
August meeting. Based on recent analysis done by the RMLD, there is an opportunity to
encourage adoption with attractive rates. Attractive rates are likely to drive customers'
economic analysis and become an additional motivator for EV adoption.
Ms. Bita asked about the Wellesley Voluntary Renewable Energy Program. Mr. Phipps
responded that this program has been in existence and the opt out program came into effect
in July, replacing the VREP program.
Discussion ensued on the current statistics and participation feedback of the Wellesley opt out
program.
Mr. Talbot noted the large cost increase between the two suggested programs, and proposed
that the RMLD combine the two programs into one renewable choice program with multiple
Page 1 7
levels, Mr. Talbot noted that this allows the program more flexibility with an approachable
cost; a second program can be added as needed later.
It was clarified that the RMLD's current Non - Carbon power supply Is 23%.
Mr. Pacino agreed with the suggestion of one renewable choice program and noted that if the
fixed rate could match the suggested rate of the non -carbon, he would support an opt -out
option.
Mr. Stempeck agreed with the suggestion of one renewable choice program. Mr. Stempeck
stated that he is not in favor of an opt out program; an opt out program would take
advantage of customers who are forced into a program that they must get out of.
Ms. Bita stated that a decision cannot be made until Mr. Phipps provides the information on
the participation rates for each program. Mr. Stempeck responded that, in his opinion, the
opt- out had a high participation rate due to most people misunderstanding what they are
being forced into.
Chair Coulter noted that he is for an opt in program and supports the suggestion of one
renewable choice program with two to three tiers.
8. Procurement Requests Requiring Board Approval
The proposal was sent out to eighteen companies. Three companies responded to the
proposal; Altec Industries, Inc.; James A. Kiley Company, and Taylor & Lloyd, Inc.
Altec, Inc. was the lowest bidder ($262K), took many exceptions, and had a two-year delivery
time. James A. Kiley Company was the second lowest bidder; took three minor exceptions
and had an estimated one-year delivery time.
Mr. McDonagh discussed RMLD's process of securing bids and the electrification operating
procedure, which aligns with RMLD Fuel Efficiency Procedure and Mass DOER guidelines.
The RMLD is actively pursuing and vetting technology that allows for electrification, for
example an EPTO system. The RMLD investigated a state grant for this type of program;
there are no grants available at this time, Vehicles over 8500 pounds are exempt from DOER
but efficiency alternatives are reviewed.
Considering the initial cost of the EPTO and cost recovery; the lack of available supporting
data on the technology, and the concerns around reliability, maintenance and added waste,
the RMLD is not recommending the purchase an EPTO at this time. The RMLD will continue to
evaluate cost and carbon savings for all RMLD fleet vehicles as electrification technology
advances.
Ms. O'Brien stated that the RMLD has historically, and is continuously, running cost analysis.
As new technology comes forward the RMLD in collaboration with the Board, needs to discuss
modifying calculations to account for green initiatives intersection with cost and return on
investment. For this equipment, the RMLD examined carbon weight in pounds and what it is
traded at in the European market, as well as amount of carbon saved during peak shredding.
Through analyzing these factors, the RMLD created a formula that balances the cost of
electrification (carbon reduction) and the return on investment.
Chair Coulter asked about the lift impact of electric vs gas; Mr. McDonagh responded there
was no impact. Chair Coulter asked about a temperature profile to keep the battery stable
and in operation; Mr. McDonagh responded that there is a heater inside the enclosure.
Mr. Pacing, made a motion, seconded by Mr. Stempeck, that proposal IFP 2021-15 for one (1)
Material Handler Truck with Trade -In be awarded to: James A. Kiley Company for
$284,049.00, pursuant to M.G.L. c. 164, 4 56D, on the recommendation of the General
Manager.
Page 18
Roll call: Mr. Pacino, Aye; Mr. Talbot, Aye; Ms. Bita, Aye; Chair Coulter, Aye; Mr. Stempeck,
Aye.
Motion Passed: 5:0:0
9. Scheduiino
The next meeting will be a joint meeting of the Board of Commissioners and Citizen's Advisory
Board held on August 12th at 6:30PM. This meeting will discuss rates and meeting minutes
only. CAB meeting coverage is as follows: Mr. Talbot, August; Mr. Stempeck, September; and
Ms. Bita, October,
10. Executive Session
Mr. Pacino made a motion, seconded by Mr. Stempeck, move that the Board of
Commissioners go into Executive Session pursuant to Massachusetts G.L. c.164 section 47D,
exemption from public records and open meeting requirements in certain instances, to discuss
competitively sensitive issues regarding union negotiations, and to consider the purchase,
exchange, lease, or value of real property, and return to regular session for the sole purpose
of adjournment.
Mr. Pacino, Aye; Mr. Talbot, Aye; Mr. Stempeck, Aye; Ms. Bita, Aye; Chair Coulter, Aye.
Motion passed 5:0:0
11. Adioumment - Chair Coulter
The Board of Commissioners returned to regular session for the sole purpose of adjourning
and promptly adjourned at 9:30 PM.
A true copy of the RMLD Board of Commissioners minutes
as approved by a majority of the Commission.
i�U�%P18 �G%SIO
Pmhpa loo luov ie, zov s-xsesl
Philp B. Pacino, Secretary Pro Tem
RMLD Board of Commissioners
Page 1 9
Mr. Jason Small, Chair (North Reading); Mr. Vivek Soni, Vice Chair
(Reading); Mr. George Hooper, Secretary (Wilmington)
Members - Not Present:
Mr. Dennis Kelley (Wilmington); Mr. Joseph Markey (Lynnfield)
Others Present:
Mr. Philip Pacino, Board of Commissioners
Staff: Ms. Coleen O'Brien, Mr. Hamid Jaffan, Ms. Wendy Markiewicz, Mr.
John McDonagh, Mr. Tom 011ila; Mr. Gregory Phipps, Ms. Kathleen Rybak,
Mr. Charles Underhill
Public: Mr. James Satterthwaite, Reading
Minutes Respectfully Submitted By: Mr. Jason Small, Chair 74 fog, 2„(,u,.,,,,,
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
Call Meeting to Order - J. Small, Chair
Chair Small called the meeting to Citizens' Advisory Board to order at 6:30 PM and
noted the meeting was being audio recorded.
General Manager's Update - C. O'Brien, General Manager
Ms. O'Brien provided a briefing on preparations for the approaching storm. The liaison
storm phone is being activated; if any CAB member needs support during the storm,
please call. Business continuity will be in place, and RMLD expects all essential
employees to be in.
Community Updates: Ms. O'Brien reported that the customer satisfaction survey is
ongoing. Findings are due at the end of January, with presentations of the results to
both the CAB and BOC to follow. The 2021 calendar distribution is going very well.
The EV workshop will be moved to February to allow for continued (CAB/Board)
training on the power supply policy. Ms. O'Brien noted that Policy 30 (regarding
power supply procurement strategy, risk mitigation, costs, etc.) is under review.
Many of the MLP's are also evaluating how they purchase power as environmental
stewardship and pending legislation is being addressed. Because of the complexity of
the subject of how the RMLD buys power in our Integrated Resources group, we've
arranged three phases of training for the BOC and CAB. The CAB will get two of the
trainings at this evening's meeting, and then a third in January.
Page 1 1
Town of Reading
0�a i
Meeting Minutes
a'IN(pP�
Board - Committee - Commission - Council:
RMLD Citizens Advisory Board
Date: 2020-12-16
Time: 6:30 PM
Building:
Location:
Address:
Session: Open Session
Purpose: General Business
Version:
Attendees: Members - Present:
Mr. Jason Small, Chair (North Reading); Mr. Vivek Soni, Vice Chair
(Reading); Mr. George Hooper, Secretary (Wilmington)
Members - Not Present:
Mr. Dennis Kelley (Wilmington); Mr. Joseph Markey (Lynnfield)
Others Present:
Mr. Philip Pacino, Board of Commissioners
Staff: Ms. Coleen O'Brien, Mr. Hamid Jaffan, Ms. Wendy Markiewicz, Mr.
John McDonagh, Mr. Tom 011ila; Mr. Gregory Phipps, Ms. Kathleen Rybak,
Mr. Charles Underhill
Public: Mr. James Satterthwaite, Reading
Minutes Respectfully Submitted By: Mr. Jason Small, Chair 74 fog, 2„(,u,.,,,,,
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
Call Meeting to Order - J. Small, Chair
Chair Small called the meeting to Citizens' Advisory Board to order at 6:30 PM and
noted the meeting was being audio recorded.
General Manager's Update - C. O'Brien, General Manager
Ms. O'Brien provided a briefing on preparations for the approaching storm. The liaison
storm phone is being activated; if any CAB member needs support during the storm,
please call. Business continuity will be in place, and RMLD expects all essential
employees to be in.
Community Updates: Ms. O'Brien reported that the customer satisfaction survey is
ongoing. Findings are due at the end of January, with presentations of the results to
both the CAB and BOC to follow. The 2021 calendar distribution is going very well.
The EV workshop will be moved to February to allow for continued (CAB/Board)
training on the power supply policy. Ms. O'Brien noted that Policy 30 (regarding
power supply procurement strategy, risk mitigation, costs, etc.) is under review.
Many of the MLP's are also evaluating how they purchase power as environmental
stewardship and pending legislation is being addressed. Because of the complexity of
the subject of how the RMLD buys power in our Integrated Resources group, we've
arranged three phases of training for the BOC and CAB. The CAB will get two of the
trainings at this evening's meeting, and then a third in January.
Page 1 1
Policy 30 - Power Supply Update - C. O'Brien, General Manager and
C. Underhill, Director of Integrated Resources
Materials: Session 1: Policy 30 Discussion Presentation Slides; and Session 2: Policy 30
Discussion Presentation Slides
Session 1 (BOC/CAB): Policy 30 Discussion. Mr. Phipps began with review of the
Session One presentation slides, which had previously been presented to the Board of
Commissioners. Staff was asked to compare the existing RMLD power supply portfolio
to the IOU Renewable Portfolio Standard (RPS)/Clean Energy Standard (CES), and
Roadmap 2050. The RPS/CES applies to the IOU's and not to the MLPs. Roadmap
2050 Standard is currently in discussion at the State level and if passed it would apply
to the MLPs. The current RMLD portfolio was created under the existing Policy 30 and
focused primarily on renewable energy, rather than non -carbon energy.
Mr Phipps summarized several key definitions in Slide2.
Mr. Phipps then reviewed Slide 3 - RMLD Power Supply: Outlook Through 2050.
Mr. Phipps note the key takeaways from the slide are that the current RMLD Policy 30
focus was to buy renewables, but not necessarily certificates. As a result, about half
of the current portfolio is renewable from an energy perspective.
Slide 4 - RMLD - Current Comparisons, illustrates how the current portfolio compares
to the IOU RPS/CES (in the bottom table). Mr. Phipps noted, for the IOU RPS/CES
there are different classes and certificate types. Typically, the IOUs buy inexpensive
energy and then buy certificates on the open market (not associated with energy
purchases) to be compliant the RPS/CES. Mr. Phipps continued, noting the comparison
(in the upper left-hand corner) shows how the RMLD portfolio would fit in; RMLD has a
broad set of certificates, but only the Massachusetts Class 1 certificates would meet
the RPS standard, hence, the current portfolio would not be RPS compliant. The
numbers on the top right-hand corner include EFECs (non -carbon) shows a closer
compliance level. Bottom-line, Mr. Phipps noted compliance to the IOU RPS/CES
standard is about certificate compliance and the RMLD portfolio does not match up
well against that because that's not what was targeted.
Mr. Phipps continued with review of Slide 5 - RMLD - Roadmap 2050; think about
Roadmap 2050 as non -carbon focused (instead of renewable focused) and the IOU
RPS/CES standard as being certificate focused. Roadmap 2050 outlines non -carbon
goals by decade, with the specific goals being worked out in the State approval
process. The current RMLD portfolio (in 2020) can meet Roadmap 2050. Looking at
2030, 2040, and 2050, RMLD has flexibility (with open position), which is good news
in terms of meeting Roadmap 2050 now and in the future.
Session 2 (BOC/CAB): Policy 30 Discussion. Mr. Phipps then began review of Session
2 Presentations slides with Slide 2 -Context - Roadmap 2050 and RPS/CES and
reiterated that in the case of the Roadmap 2050 it is non -carbon - it consists of
securing certificates (being neither RECs. EFECs, etc.), but there are also provisions
for reduction of greenhouse gases for some of the carbon -emitting pieces. In all
cases, the RECs would be retired.
Mr. Phipps then reviewed Roadmap 2050 Compliance Cost Impact (Slide 3) noting that
for 2021 through 2024, pricing data is published, but not beyond 2024. For 2021 to
2024, the required non -carbon compliance certificates go up from 159,515 in 2021 to
222,400 in 2024. Based on existing contracts to cover those with EFFCs (for
example), the total RMLD cost works out to be in the range of $300k to $400k - not a
big magnitude relative to total RMLD budget (0.3 - 0.4%).
Moving to Slide 4 - RPS/CES Compliance Cost Impact, Mr. Phipps reported that staff
did the same basic analysis comparing the RMLD existing portfolio to RPS/CES
Page 1 2
compliance. For this analysis, staff used Massachusetts Class 1 RECs as being the
compliance proxy, using published prices (from the most recent spectrometer RECs
report) for the unit price. If RMLD needed to comply with the RPS/CES standard,
RMLD would need to spend an additional $6.3m (on average) for the next four years;
that would be about a 7% increase just to cover the RECs.
Mr. Phipps then reviewed RMLD Position (Slide 5), which shows RMLD portfolio from
2020-2030. The Massachusetts Class 1 RECs (in blue at the bottom) are RECs under
contract and are generated as power is generated (one REC per megawatt hour). The
green are other New England Class 1 or Class 2 RECS that are also currently under
contract - much of those are tied to hydro (as an example). RMLD also have EFECs
(pink) tied to a nuclear contracts. The rest are also non -emitting, non -carbon assets,
but they don't necessarily have RECs in hand. Mr. Phipps noted that if you were to
compare the current RMLD portfolio to Roadmap 2050 (the yellow line) RMLD is
compliant through 2029. RMLD is not yet locked into contracts in the "white" space on
the top right of the chart, so there is Flexibility.
Mr. Phipps then reviewed (Slide 6) CMLP REC Procurement Development, which
illustrates Concord Municipal Light's power supply to make a simple comparison. Mr.
Phipps noted, for the purpose of this discussion, the focus will be on 2020 to 2030 (on
the chart). It has a very similar shape (to RMLD) except in 2020 and 2021 where they
needed to purchase certificates to cover their carbon assets (blue hashtag area).
Concord's goal was not necessarily to meet the IOU RPS/CES, but to meet internal
goals (renewable and RECs). They collected additional dollars from their rate base
and used it to buy and then retire certificates - very similar to what the IOU's are
being forced to do with their strategy. To give you an idea of the order of magnitude,
in 2021 that blue shaded bar represents about $3.2m and for their rate base that is
about two cents per kWh incremental. They ended up doing that to basically allow
them to be renewable to the extent that their policy has redirected them to be.
Mr. Phipps concluded, if you compare the RMLD portfolio to the IOU RPS/CES the
RMLD does not comply very well. To catch up, it would be a rather significant (-7%)
increase on a typical customer budget. However, relative to Roadmap 2050 RMLD
already matches well, and the incremental cost is minimal. Mr. Phipps asked if there
were any questions.
Mr. Soni asked what $1.91 / MWH (on Slide 3 — Roadmap 2050 Compliance Cost
Impact) represented. Mr. Phipps responded that is the current value of an EFEC.
EFECs represent a low-cost way to be non -carbon compliant (buy then retire). Mr.
Phipps noted two points: In terms of the magnitude of what would be required by
Roadmap 2050, RMLD already has contracted RECs that would cover that. The second
point, right now, the value of those RECs is fairly low since the unit price is low.
Mr. Soni noted he had read the report (shared with the CAB) that was filed with DOER.
The report names a hypothetical plant at I-90 and I-91, which has the largest supply
radius in the report. The last bullet of the summary was that the increased supply
radius can have unpredictable impacts on supply reliability and cost implications for
biomass facilities and this is the most significant finding. It means that the increased
supply logistics could make it more expensive and less reliable; RMLD is showing it as
a fixed amount going forward. Ms. O'Brien responded that the report had just come
out and staff will need an opportunity to look at it prior to discussion. Ms. O'Brien
asked Mr. Soni if he would provide an email with specific questions so that staff could
understand the questions and do some analysis in preparation for discussion on the
impact on firm energy. Mr. Soni agreed to share his questions with Ms. O'Brien.
Chair small asked if there were any additional questions on Policy 30. There were
not.
Page 1 3
4. 2020/2021 Review
Materials: Business, Finance & Technology CY2020 In Review Presentation Slides;
Engineering & Operations Presentation Slides; RMLD IRD Accomplishments and Goals
Presentation Slides
• Business, Finance and Technology Review - W. Markiewicz, Director of
Business, Finance and Technology
Ms. Markiewicz began her review of CY2020 by stating how very proud and pleased
she was with the progress made especially in such a challenging year. Ms.
Markiewicz began with a review of Business (slide 2) noting the Business division
lead the initiative for paperless processes for Accounts Payable and Payroll to
accommodate remote work. The Business division committed to quarterly meetings
with the Town of Reading Finance Department and Accounting Department to
ensure an open line of communication; they have been very successful thus far.
Staff also took the approach of integrated processes and procedures across the
entire organization so that each division could work collaboratively. The Payroll
department, in particular, developed a cohesive relationship with Human Resources
specifically to ensure COVID benefits, FFCRA, and other benefits for our employees.
Ms. Markiewicz continued with review of Finance (slide 3) and Technology (Slide 4),
noting it was a very difficult year due to the ransomware intrusion; the main focus
was securing the RMLD IT infrastructure. Ms. Markiewicz then reviewed the CY2021
Goals (Slide 5). Mr. Soni asked that an update on the IT breach be scheduled. Ms.
O'Brien responded that staff is still working on some of the issues, but that a
presentation on the report received could be scheduled (for Executive Session).
• Engineering & Operations - H. Jaffari, Director of Engineering & Operations
Mr. Jaffari then presented the Engineering & Operations (E&O) accomplishments
for 2020. System Reliability is highlighted on Slide 2. RMLD is below the regional
and national averages on the three reliability indices, and it is expected RMLD will
receive another "Certificate of Excellence in Reliability" from APPA for 2020.
Maintenance Programs are highlighted on Slide 3; the goals for all these programs
have been met and great progress has been made across all categories. Mr. Jaffari
noted Long-term Reliability Projects (slide 4) were designed and developed as a
result of the 2015 Reliability Study and they are the major contributing factors to
the RMLD's overall system reliability; significant progress has been made in
achieving our 2020 goals. Mr. Jaffari then reviewed Slides 5 through 9, which detail
the progress on each of these Long-term Reliability Projects.
Mr. Jaffari moved to Slide 10 - Projects and Studies Done in 2020 noting E&O met
the goals for 2020 except for the Meter Replacement Project. A study was
conducted on that and the results just came back, which are being reviewed for
implementation in 2021. Slide 11 - 2021 Electric Reliability Goals outlines the
major projects that were approved as part of the 2021 Capital Budget. Mr. Jaffari
noted that moving into 2021, he is expecting another successful year.
Mr. Jaffari then reviewed Slide 12 - Facilities, which outlines the 2020
accomplishments and 2021 goals for the Facilities group. Mr. Jaffari noted that
concluded his report, and that he would be happy to answer any questions. There
were none.
• Integrated Resources - C. Underhill, Director of Integrated Resources
Mr. Underhill began his review of the IRD 2020 Accomplishments (Slide2) noting
RMLD added about 25% of our portfolio in terms of non -carbon supply contracts in
2020. Both the generator and the battery were run for capacity and transmission
Page 1 4
savings and had a peak demand limiting program; the net effects of those were to
reduce our power supply budget by about $692k. Mr. Underhill then reviewed the
progress on Retail programs. Mr. Underhill noted RMLD added a new feature to
the heat pump program; a contractor was engaged to review all the heat pump
applications to make sure they were appropriately sized and to work with
customers to make sure that they understand how the new system is going to
work. Mr. Underhill then reviewed some of the "General" accomplishments
including a review of the COVID response. Mr. Underhill noted that Joyce
Mulvaney (Communications Manager) has received an award from MEAM for
outstanding performance.
Mr. Underhill then reviewed the 2021 Goals (Slide 3) including Roadmap 2050
implementation, Wholesale (power supply), and Retail programs.
Chair Small thanked Mr. Underhill and asked if there were any question. There
were none.
S. Scheduling: CAB Meetings & Coverage for Commissioners Meetings - J. Small, Chair
The next CAB meeting was scheduled forJanuary 21, 2021,
6. Adjournment -1. Small, Chair
Mr. Hooper made a motion to adjourn, seconded by Mr. Soni. Motion Carried 3:0:2 (3
in favor, 0 opposed, 2 absent)
The CAB meeting adjourned at 7:30 PM.
As approved on November 17, 2021.
Page 1 5
r
Town of Reading
0d r Meeting Minutes
2a �
"•1r�
Board - Committee - Commission - council:
RMLD Citizens Advisory Board
Date: 2021-03-18
Time: 6:00 PM
Building:
Location:
Address:
Session:
Purpose: General Business
Version:
Attendees: Members - Present:
Mr. Jason Small, Chair (North Reading); Mr. Vivek Soni, Vice Chair
(Reading); Mr. George Hooper, Secretary (Wilmington); Dennis Kelley
(Wilmington)
Members - Not Present:
Mr. Joseph Markey (Lynnfeld)
Others Present:
Mr. John Stempeck, Board of Commissioners
Staff: Ms. Coleen O'Brien, Mr. Brian Hatch, Mr. Hamid Jaffari, Ms. Wendy
Markiewicz, Mr. Gregory Phipps, Ms. Margaret Quigley, Ms. Kathleen Rybak,
Mr. Charles Underhill
Mr. James Satterthwaite, Reading
Minutes Respectfully Submitted By: Mr. Dennis Kelley, Secretary Pro Tem
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 - J. Small, Chair
Chair Small called the meeting of the Citizens' Advisory Board to order at 6:02 PM and
noted the meeting was being audio recorded.
2. General Manager's Report - C. O'Brien, General Manager
Community Update:
• Heat Pump Webinar: This took place on March 2nd and was well attended; 125
live participants and 250 views of the webinar recording. It will be aired on
community television stations.
• Annual Report: The High School Art Contest ended on March 21st with 21
submissions. This will be the fifth year that RMLD has used high school students'
artwork for the Annual Report. This year's report theme is "Resiliency". RMLD
anticipates publishing the Annual Report by June.
• Electrical Vehicle Workshop: This will be held on April 27th at 7:00 PM. Once
this is formalized information will be sent out.
Page 1 1
Electric Vehicle Grant Update
RMLD has applied for Massachusetts state grants for EV charging stations at multiple
locations for level two and three stations in Reading and Wilmington. Authorization has
been made by the Select Boards as well as the Library Trustees. The grant permits up to
$50,000 per location. These funds would be for the head, construction, and electric feed.
2020 Financial Update/Town Meeting Presentation
A presentation was not done at the April Reading Town Meeting because RMLD's
financial audit was not complete. A presentation will be made to each of the respective
town Select Boards.
3. Power Supply and GGES Update - C. Underhill, Director of Integrated Resources and
G. Phipps, Assistant Director of Integrated Resources
Power Supply Update - C. Underhill, Director of Integrated Resources
Materials: Power Supply Report BOC/CAB Presentation Slides
Mr. Underhill reported on RMLD's Power Supply, which included actuals for 2019 and
2020; RMLD used these results to prepare its 2021 load forecast for power supply. RMLD
finished 2020 just over a half percent above 2019 results and about 3% below the ENE
forecast. The load difference occurs in the first four or five months of 2020.
RMLD did not experience the 8% reduction in load projected by others for ISO New
England's area due to the effects of COVID 19. However, in terms of load, that
translated to the same results for retail sales. Total purchase power expense was about
$750,000 to $800,000 lower than anticipated for the first two months. A significant part
is due to January being much warmer than anticipated.
Capacity costs came in slightly higher. RMLD will analyze what drove that result;
whether it was ISO New England resettlements or other fixed cost impacts in some of
the projects that RMLD has contracted with. Transmission came in closely to what RMLD
expected on the open access transmission grid and the sub -transmission services that
RMLD receives from National Grid and Ever Source. January results came in very good
shape; a good start for the 2021 year.
GGES Update - G. Phipps, Assistant Director of Integrated Resources
Materials: Greenhouse Gas Emissions Standard (GGES) Policy 30 Update Presentation
Slides
Mr. Phipps provided an update in context of the approved Policy 30, Revision 1.
Legislative Update (Slide 3): Mr. Phipps discussed the information on the legislation
update. This afternoon (March 18) the House approved the Climate Bill that the Senate
approved on March 15. The next step is for the Bill to go back to the Governor likely
effective by the end of April.
Certificate Management (Slide 4): Mr. Phipps discussed certificate management at
RMLD. Under the old Policy 30, most of the RECs were sold. Under the new Policy 30,
certificates will be retired up to the annualized line. Certificates of lesser value are
retired first; the balance are sold to avoid expiration and rate shock. Certificates will be
reported quarterly going forward.
Certificates - NEPOOL GIS (Slide 5): Certificates are created at the time energy is
generated. RMLD cannot transact them until they are minted, approximately six months
later, at which time they can be retired or sold. There is a two-month transaction
window each quarter (retire, sell, or forfeit).
Page 12
Mr. Soni asked for clarification relative to the accumulation of the certificates for the
whole year. Mr. Phipps explained that there is annual reporting; RMLD prepares calendar
year flings. There is the ability to bank certificates, however, by June 15 of the following
year RMLD must transact. Remaining prior year certificates are forfeited after June 15th.
Mr. Soni asked for clarification; what is the transaction? Mr. Phipps responded that
RMLD's transactions would be to sell or retire. Retire up to RMLD's internal compliance
level then sell the rest. The other scenario would be forfeit; RMLD does not want this to
happen and has processes in place to avoid forfeiting.
Power Supply Opportunity NE Hydro Generator (Slide 6): Mr. Phipps stated that RMLD
is always filling open positions in its power portfolio. This hydro project is in southern
New England, has seasonal output, and will generate approximately 25,000 megawatt
hours annually, representing about 3.8% of RMLD's portfolio. The hydro project
contract term is 25 years, has associated PECS, and is renewable and non -carbon.
It is a Connecticut-based hydro facility. It was originally started in 1870, and the first
dam was functioning as a mechanical generator. In the early 19th century, it was
converted to electric. It went through a fairly extensive relicensing with FERC in the
early 1980's. Gravity Renewables (who has expertise in this space) is in the process of
taking over the project, refurbishing it, and then relicensing. RMLD anticipates that the
certificates will be Connecticut Class 1 Certificates. RMLD is purchasing those
certificates to year 15 and has an option on those certificates during years 15 through
25 years.
Based on RMLD's hydro portfolio, the pricing of this project is a little lower than RMLD's
hydro average. Hydro costs are approximately 80% higher than RMLD's overall portfolio
average cost. RMLD hopes to start taking energy from this project in the summer of
2021.
Mr. Soni asked if this project is pumped hydro? Mr. Phipps responded that this is a river -
based hydro and not pumped hydro. Mr. Phipps added that Gravity informed him that
they will probably need to put a fish ladder in; currently there is no fish ladder. Mr. Soni
clarified that the project will need a fish ladder; it will be fish friendly? Mr. Phipps
replied, yes, Gravity Renewables is environmentally focused, and their expertise is hydro
projects.
Mr. Hooper asked if there is any information in terms of reliability on the project; what
are the water levels and consistency? Mr. Phipps responded that hydro projects tend to
be seasonal and historical output is recorded. RMLD only pays for what is produced and
delivered. The project location is the southern part of Connecticut. There are two dams
ahead of the project and it has a relatively level Flow from a seasonal perspective.
4. Engineering & Operations Report: Solar/Battery System Impact Study - H. Jaffari,
Director of Engineering & Operations
Materials: Engineering & Operations Report Presentation Slides
Mr. Jaffari reported that RMLD's reliability (Slides 2 and 3) is great - well below the
regional and national averages. In February the average was down due to weather-
related incidents; there were four storms. RMLD does not have the APPA 2020 data, it
has not yet been published. RMLD sends its reliability indices as well as outage data to
APPA. They perform an analysis then provide RMLD the results. The past few years
RMLD has been doing great. RMLD anticipates receiving another Reliability Award for
2020.
Mr. Jaffari then reported on the Solar/Battery System Impact Study (Slide 4), which was
performed in 2020 to find out the limitations on the system and the feeders to make
sure that RMLD is not exceeding those limitations. Mr. Jaffari stated that the solar GIS
map (Slide 5) tracks who is requesting interconnection and monitors the heat index map
Page 1 3
for the available capacity. To date there are approximately 90 installations and
increasing. Mr. Jaffari then reviewed the goals and deliverables of the study (Slide 6).
The study addressed the operating limits to make sure that the system reliability and
safety integrity is not compromised. In addition, as a result of the study, it calculates
the maximum capacity that RMLD can offer to its customers for interconnection at every
node, including enhanced tracking and control over the capacity limit. The deliverables
include performing engineering analysis to provide a report with a data file that contains
an updated heat index map (Slide 8) based on GIS data provided and identifying the
limiting factors such as wires and protective devices that need upgrade to open more
capacity.
RMLD engineers prepared and provided the system modeling for the consulting firm
(PSE) to minimize the cost of the study. The information was integrated into the study.
Specific information such as system impedance, voltage, wire sizes, and identification of
protective devices were provided to a highly sophisticated software system to conduct
the study.
As a result of the study, a heat index map (Slide 8) was created for every feeder or
circuit systemwide. These maps are updated every six months and require a few hours
of PSE consultant time for their updating. Solar Capacity Results (Slide 9) represents a
detailed analysis performed by RMLD for the addition of solar capacity within the system
parameters.
The system limitations or capacity limitations (Slide 10) are the shared responsibility
between RMLD and its customers. Customers should contact the RMLD with the design
and installation, which includes a smart inverter. The smart inverter can control the
power now, reverse the power flow, and regulate the voltage. The goal is not to
compromise reliability and system protection. It is strongly suggested that customers
contact the RMLD prior to purchasing or installing a solar system to determine what the
limitations are beforehand. The customer can store excess through battery storage as
well. In addition, customers can participate in RMLD's peak shaving program.
Mr. Jaffari reviewed RMLD's Business Process (Slide 11) that begins with the customer
request to add solar/battery to RMLD's distribution system. Customers should contact
RMLD to see if there are any system capacity limitations before they make any economic
investments. RMLD does explore the possibility of opening up capacity, but in some
cases, it is not a viable option.
Mr. Jaffari noted that the RMLD Electric Service Requirements Handbook was updated in
2021. It can be found on RMLD's website and outlines customers' responsibilities and
requirements. The requirements and restrictions that apply to distributed generation
installations are found in Section 13.1 on page 44, "Customer -Owned Generation
Requirements."
Mr. Hooper asked if the solar guidelines apply to residential customers as well as
business. Mr. Jaffari responded it is for residential, commercial, and industrial customers
- anyone who is considering installing solar.
Mr. Soni stated that it was an excellent report, noting anything over 150kW needs a
special evaluation; what is the timeline to get feedback? Mr. Jaffari responded the
turnaround time is approximately two weeks.
5. Financial Report: December Financials (Unaudited Draft) — W. Markiewicz,
Director of Business and Finance
Materials: Financial Review (Unaudited Draft) Presentation Slides
Ms. Markiewicz reported on the timeline for the audit schedule; the audit will most likely
be presented to the Audit Committee in May. The draft audit findings are presented to
the Audit Committee, the Audit Committee makes a recommendation to the Board of
Page 1 4
Commissioners, and then the Board of Commissioners accepts the audit. After the Board
of Commissioners accepts the audit, the final financial statements can be released to the
public.
Ms. Markiewicz began her presentation of the unaudited draft of the financials for
calendar year 2020. Regarding the accounts receivable, due to COVID, the focus is
RMLD's ongoing relationship with its customers; by affording them some leeway and
extending any type of services to provide further assistance. The receivables dipped in
June and October due to COVID. Currently, RMLD is back to 96.5%, 90 days current.
Ms. Markiewicz then reported on the depreciation reserve compared to capital spending.
RMLD has been consistently spending more money on capital improvements for the
safety and reliability of its capital infrastructure. In CY 20, about $7.3 million represents
capital spending, whereas operations and maintenance expenses are under budget by
approximately $1.1 million mainly because of COVID.
Ms. Markiewicz highlighted the budget to actual balances, pointing out RMLD uses FERC
numbers for its accounting. Operations and maintenance were under budget based on
the following: vacancies in multiple areas due to talent pool, retirees, and resignations
resulting in decreased spending. In addition, due to COVID, the tree trimming program
(halted or decreased), education and training programs were either cancelled or
diminished causing less spending.
Unforeseen events caused an increase in spending such as the sick buyback payouts.
RMLD now offers employees the opportunity to buy out their sick time that follows strict
guidelines set in place. Quite a few employees took advantage of this option. This year,
the liability has decreased, which is positive for RMLD. The RMLD also had to spend
funds on necessary roof repairs. Funds were also spent on the security monitoring
measures for IT infrastructure due to the ransomware intrusion.
Ms. O'Brien added that the DPU requires the RMLD, as a minimum, to invest the
depreciation amount into the system. A Convergence Study was performed in May 2018
(found on RMLD's website). For a system of RMLD's size, the target should be about $8
million annually. RMLD uses the deprecation fund and a transfer from the operating fund
for capital projects.
Chair Small asked if there were any questions, there were no respondents.
6. Scheduling - J. Small, Chair
The next CAB meeting was scheduled for April 22, 2021. Mr. Hooper will cover the April
BOC meeting.
7. Adjournment - J. Small, Chair
Mr. Hooper made a motion seconded by Mr. Soni that the Citizens' Advisory Board
adjourn regular session. Motion carried 4:0:1 (4 in favor, 0 opposed, 1 absent) by a roll
call vote of those present. Mr. Soni, aye; Mr. Hooper, aye; Mr. Kelley, aye; and Chair
Small, aye.
The CAB meeting adjourned at 7:10 PM
As approved on November 17, 2021.
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