HomeMy WebLinkAbout2022-02-24 RMLD Board of Commissioners MinutesRECEIVED
TOWN CLERK
Town of Reading READING, MA.
Meeting Minutes 2022 JUN 13 PH tie -
2922
I
Board - committee - commission - council:
RMLD Board of Commissioners
Date: 2022-02-24
Time: 7:30 PM
Building:
Location:
Address:
Session: Open Session
Purpose:
Version: Final
Attendees: Members - Present:
Mr. Robert Coulter, Chair; Mr. Philip Padno, Vice Chair; Mr. David Talbot,
Commissioner; Ms. Marlena Bita, Commissioner.
Members - Not Present:
Mr. John Stempeck, Commissioner
Others Present:
RMLD Staff: Ms. Coleen O'Brien, General Manager; Mr. Greg Phipps, Director
of Integrated Resources; Ms. Wendy Markiewicz, Director of Business
Finance; Mr. Hamid Jaffari, Director of Engineering and Operations; Mr.
Brian Hatch, Director of IT; Ms. Paula O'Leary, Materials Manager; Ms. Erica
Morse, Executive Assistant.
RMLD Finance Committee Liaisons: Jackie McCarthy, Reading
Citizens' Advisory Board:Mr. Dennis Kelley, CAB, Reading.
Minutes Respectfully Submitted By: Philip Pacino, Secretary Pro Tem
Topics of Discussion:
1. Call Meetino to Order
Chair Coulter called the Board of Commissioner's meeting to order at 7:30 PM and
announced that the meeting would be held on Zoom and live on RCTV and YouTube.
Opening Remarks
Chair Coulter read RMLD's code of conduct.
Vice Chair Pacino served as Secretary at the meeting.
Introductions
Chair Coulter welcomed everyone to the meeting of the RMLD Board of Commissioners
and asked all attendees to Identify themselves.
2. public Comment
Citizens' Advisory Board
Mr. Kelley reported that at the last meeting, the CAB voted to recommend the upcoming
solar array and hydro projects.
Chair Coulter noted that himself as well as Vice Chair Pacino attended the CAB meeting;
the meeting was brief and went well.
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Liaisons to RMLD Board
Ms. McCarthy thanked Ms. O'Brien and Ms. Morse for their collaboration in scheduling a
visit and presentation to the Finance Committee on March 23, 2022.
Public Comment
There was no comment from the public during this meeting.
3. Approval of Board Mlnutes
Materials: Board Packet, Attachment 1 (PDF)
The December 21, 2021, regular session meeting minutes were approved by the Board
as presented.
Vice Chair Pacino made a motion, seconded by Mr. Talbot, that the Board of
Commissioners approve the meeting minutes of the December 20, 2021, meeting on the
recommendation of the General Manager.
Motion Carried: 4:0:1 (4 in favor, 1 absent) Roll call: Vice Chair Pacino, Aye; Mr.
Talbot, Aye; Ms. Bita, Aye; Chair Coulter, Aye. Mr. Stempeck was not present at the
meeting.
4. General Maneoer's Report
Ms. O'Brien provided a General Manager's report as follows:
ENE Board of Directors
Ms. Bita asked for Ms. O'Brien to further explain what it means to be appointed.
Ms. O'Brien noted that the RMLD is an 8% owner, as well as a member, of Energy New
England (ENE). This motion allows for Ms. O'Brien to continue as a Director on the Board
representing the RMLD as an owner.
Mr. Talbot asked a question regarding the structure of ENE meetings and Ms. O'Brien's
role. it was confirmed that as a director who sits on the ENE Board, Ms. OBrien attends
Board meetings, and weighs in on ENE policy. Some Board meetings are public while
Executive Sessions are dosed. Mr. Talbot noted that ENE policies loop back to the RMLD
since ENE does a lot of work for the department.
Mr. Talbot asked If Ms. O'Brien could provide the ENE agenda topics at the BOC meeting
prior to each ENE Board meeting. This would provide the Board with the opportunity to
weigh in on topics before the next ENE meeting.
Ms. O'Brien agreed to Mr. Talbot's request and stated that she would send the Board the
most recent ENE meeting agendas and provide an update at the next meeting.
Mr. Talbot asked if the ENE meetings were on zoom or in person? Ms. O'Brien stated
that the meetings are hybrid at this time and noted that she has been attending on
zoom due to COVID precautions.
Ms. O'Brien noted that the ENE Board is comprised of owners, GMs, and private entities.
As a director, Ms. O'Brien solely represents the RMLD, along with Its mission statements,
visions, and policies.
Ms. O'Brien commented on the timeframe of which the ENE agendas are usually
circulated prior to a meeting; days prior.
Mr. Talbot cited a concern around the Board understanding what ENE is doing.
Vice Chair Pacino proposed that the RMLD provide a quarterly update on ENE to the
Board, to which all agreed.
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Ms. Bite noted that Ms. Morse shares the MEAM meetings for Board attendance, and the
ENE meetings could follow a similar process.
Vice Chair Pacino made a motion, seconded by Ms. Bita, move that pursuant to Section
3.2 of the Operating Agreement of the Energy New England, LLC, the Reading Municipal
Light Department Board of Commissioners hereby re -appoint Coleen O'Brien as a Class
B Director of the Energy New England, LLC Board of Directors for a term of three years.
Motion Carried: 4:0:1 (4 in favor, 1 absent) Roll call: Vice Chair Padre, Aye; Ms. Bits,
Aye; Mr. Talbot, Aye; Chair Coulter, Aye. Mr. Stempeck was not present at the meeting.
Community Update
Storm Update
RMLD has storm crews coming in at 1:00 AM, including control authorities. Ms. Mulvaney
sent out a memo stating that the department is activating the liaison phone at 1:00 AM.
The liaison phone is mainly used for Town Managers, who are not
calling police and fire, to get ahold of RMLD.
RMLD's service area is expected to receive around 12 Inches. As of now, the building will
remain open, and a final decision will be made tomorrow. Some staff are working
remote, and a skeleton crew will remain in the office. Operations will be fully staffed.
Supply Chain
Ms. O'Brien stated that the RMLD has taken steps to ensure that spare parts are
available and trying to stay ahead of supply chain issues. However, the impact of the
supply chain on the department is inevitable.
Mr. ]affari will be presenting the transformer bid at the next meeting. The department is
being told that this will be a two year wait and the Department will further examine the
Impact of this delay.
RMLD has been focusing on transformer inspection and replacement for equipment that
has reached the end of Its useful life. The department will continue with inspections and
replace any equipment that shows signs of leaking or degrading. However, other
projects may be pushed off to ensure stock remains intact and/or in the use of an
emergency.
Supply chain Issues will affect most equipment. Transformer Inspection and replacement
is one of the main projects that will be largely impacted. This will influence how the
department will shift workload that is presently scheduled.
Electric Veh'dp r'haraino Stratea'es Webinar
The EV charging strategies webinar was held on February 1, 2022, with approximately
80 live attendees. Ms. O'Brien commended Mr. Talbot for serving as a panelist. The
recording was shared in last newsletter and is available on website and YouTube.
Elementary Art r ntea+ Awards Nights
The Elementary Art Contest will be held virtually on March 3i° and March 10"` at 7 PM.
High Schoctl Art Cooter artwork is due March 25 2022
The High School Art Contest has kicked off; a press release was sent out last week.
The artwork is due on March 25, 2022, and the winner is usually featured on the front
page of the annual report. The theme of the contest is versatility, which dovetails Into
the 2021 annual report theme.
Ms. O'Brien noted that the art contest is fun to participate and vote on; the artwork Is
usually very Inspirational.
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The carpet and paint in the AV room are complete; and the department is working to
finalize specifications for the AV equipment with a goal to hold hybrid meetings in the
spring.
The annual report will be published in the spring after the financial audit is complete.
The report will have a different format lending to a more holistic feel and expand on the
RMLD's versatility. Instead of separate lists, the department accomplishments will be
integrated and organized by topic.
Economic Development Meeting
Ms. O'Brien stated that the RMLD master plan for the 230 Ash Street Campus was put
on hold in 2014 due to town economic -development plans; the department would like to
get back to working on this master plan. There are several visions for the development
of the Ash Street Campus on the town's website. To gain a better understanding of what
is happening with the Ash Street Campus, Ms. O'Brien Is working to facilitate a
conversation between the Select Board and BOC in a joint meeting,
The first step was to Invite the BOC, Select Board, and town planning on a tour of the
Ash Street Campus to see the overall layout and buildings. The tour Included the Barbas
Building that the department rents; Statlon 1, the old generating station; and the
operations area where the lineman and trucks operate from. The intention was to
provide attendees with the lay of the land, and the volume of space required by the
RMLD for operations.
It was agreed that Ms. Morse would reach out to Ms. Herrick for evening availability and
send out a doodle poll for said joint meeting.
Finance Committee Update
Ms. Marklewia and Ms. O'Brien will be presenting at the Finance Committee meeting on
March 23, 2022. Currently, the agenda is the FERC training provided by Ms. Marklewicz
as well as the PILOT (Payment in Lieu of Tax) calculation.
Cultural Survey
The RMLD hired Cultural Solutions to complete the last effort under the 2014 reliability
study, which called for both a customer and employee survey. The scope for the
employee survey was finalized this week and the department Is anticipating a signed
contract Monday.
Cultural Solutions will give a kickoff presentation to the Board on how they do employee
surveys all the way through to training, including leadership training. This meeting is
tentatively scheduled for March. Once there Is an understanding on how the survey is
run, the Board can provide Input to questions and move forward from there.
GM Evaluation / Annual Report
The topic "GM Evaluation / Annual Report" under agenda Item 4: "General Manager's
Report" was not discussed at this meeting.
S. Policy Review
Materials: Policies Board Packet (PDF).
Discussion ensued regarding holding off on certain policies until the next meeting
Ms. O'Brien reported on the following policies:
Policy 2: Surplus Material
Ms. O'Brien outline the following changes to Policy 2:
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• Section 3: Assionino Value:
The current language states "Fair Market Value" which is difficult to adhere to. This
verbiage was modified to reflect inspector general language and process.
• Section 4• Categorization of Surplus Proaerty:
Values were modified to increased cost of equipment.
o Moderate Value changed from more than $500 to more than $1000
o Nominal Value changed from $500 or less to $1000 or less,
• Section 6: Disposal Procedures:
Removed Section C: First Right Of Refusal, Vehicles, and Other Property as this
practice has not been occurring. Prior to this, RMID would implement a first right of
refusal for surplus material on a rotating basis to the Towns. Recently, no Towns
have taken the RMLD up on any offers. Moreover, with the new DOER fuel policies,
the RMLD is getting rid of most items or placing them on Munibid, which the towns
have access to and can utilize.
• Section 9• Administrative Review and Reporting: Changed to quarterly reporting to
the Board (substantial value) Ms. O'Brien noted that the Board Packer currently
contain monthly updates and this practice will continue.
Vice Chair Pacino made a motion, seconded by Ms. Bita, move that the Board of
Commissioners approve Policy 2: Surplus Material, as presented, on the
recommendation of the General Manager.
Motion Carried: 4:0:1 (4 In favor, 1 absent) Roll Call: Vice Chair Pacino, Aye; Ms. Bita,
Aye; Mr. Talbot, Aye; and Chair Coulter, Aye. Mr. Stempeck was absent.
Policy 9: Procurement
Policy 9: Procurement was postponed to a future meeting. The motion as tabled and no
vote was taken.
Policy 10: Anti — Fraud
The Department has been using the long-term memo from former GM, Vinnie Cameron,
titled: Deflnition, Reporting, and Investigation of Fraud as Fraud guidelines.
Ms. O'Brien, along with the Auditor, recommended transforming the Fraud Memo into a
more formal policy format.
The proposed Policy 10 (policy number assigned from a previously dissolved policy) is a
standard anti -fraud template that aligns with the former memo and law.
Chair Coulter asked what the difference is between the former memo and the current
policy; Ms. O'Brien responded that the policy gets more Into the details of the law
whereas the memo is broad stroked.
Ms. Markiewicz stated that each year the Auditors ask if the Department is making the
employees aware of anything relating to Fraud that outlines the RMLD's expectations
from employees. The proposed Fraud policy will go a long way with the audit.
Ms. O'Brien noted that the department took the general description of that Fraud from
the memo and put the information into a formal policy format with responsibilities,
required trainings, etc.
Chair Coulter asked a question on whether employees will have to take an online class
yearly or something similar?
Ms. O'Brien responded that the proposed policy would follow the same process as all
Board Governing Policies. Once the policy is approved, the Director of Human Resources
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sends the policy to all employees to review and sign. Certain policies go beyond this and
have tralnings; this policy will likely fall into that category.
Vice Chair Pacino asked a question regarding a Whistleblower provision. Ms. O'Brien
responded that provisions would be clarified.
Chair Coulter noted the statement regarding employee misconduct (III C), does not
seem to correspond with the definition of Fraud in the financial sense. Chair Coulter
stated that the scope of Fraud in this policy Is too broad and relates more to Human
Resources.
Ms. O'Brien responded that in the eyes of the auditor and the law, everything outlined In
the policy comes under the definition of fraud. This expansion on the definition of fraud
was recommended when the RMLD sent the memo through legal.
Mr. Talbot asked if the policy specifies the role of the Board.
Discussion ensued on the role of the Board in the proposed fraud policy in comparison
with potentially related policies, such as, anonymous communications.
Ms. Markiewla stated that she would send the proposed policy to the auditor for review
and ask for feedback on the following: addition of a whistleblower provision, the scope
and definition of fraud, as well as the Board's role and involvement.
Vice Chair Pacino suggested Inserting simple verbiage under III C, such as, 'all
whistleblower laws or procedures will be respected'.
The Board agreed to postpone and re -review Policy 10.
Policy 14: Use of Voluntary Sick Banks
Ms. O'Brien stated that no changes were made to Policy 14 aside from the following: In
accordance with the current RMLD Organizational Chart, Human Resources Manager was
changed to Director of Human Resources throughout.
Chair Coulter commended the RMLD for offering such a great policy to its employees.
Mr. Pacino made a motion, seconded Ms. Bita, move that the Board of Commissioners
approve Policy 14: Use of Voluntary Sick Banks, as presented, on the recommendation
of the General Manager.
Motion Carried: 4:0:1 (4 In favor, 1 absent) Roll Call: Vice Chair Patine, Aye; Ms. Bita,
Aye; Mr. Talbot, Aye; Chair Coulter, Aye. Mr. Stempeck was absent from the meeting.
Policy 21: Non -Union Management Compensation and Benefits
Ms. O'Brien outlined the following changes to Policy 21:
• General: In accordance with the current RMLD Organizational Chart, Human
Resources Manager was changed to Director of Human Resources throughout.
• General: ICMA was changed to IRC 457 throughout.
• Section i C' General Ellaihlilty: A 30 -hour min requirement for Tuition
Reimbursement was added.
• Section 4: Overt'me and Como A, General: FSLA law was clarified.
• Section 4• B Non- exempt - 2• Rate and Accrual: Non-exempt rate and accrual was
clarified.
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Section 5; Longevity Pay B Annual Payment: The monetary value associated with
years of service was removed as these numbers change annually. Verbiage was
added referencing the IBEW contracts.
Chair Coulter asked if any changes were made to comp time and how many employees
this policy effects in total. Ms. O'Brien responded that there are grade levels exempt and
non-exempt; the Director of IT and Director of HR were added and are not entitled to
these benefits. Ms. O'Brien confirmed that four employees total are excluded from comp
ti me.
Vice Chair Pacino made a motion, seconded by Ms. Bita, move that the Board of
Commissioners approve Policy 21: Non -Union Management Compensation and Benefits,
as presented, on the recommendation of the General Manager.
Motion Carried: 4-0-1 (4 In favor, 1 absent) Roll call: Vice Chair Pacino, Aye; Ms. Bita,
Aye; Chair Coulter, Aye; Mr. Talbot, Aye. Mr. Stempeck was absent.
6. Integrated Resources R oort (Taken out of order)
Materials: Board Packet, Attachment 3, Integrated Resources Report (PDF)
Mr. Phipps provided the integrated Resources Report as follows:
Solar Addition to Power Supply
PV - Milan Road (slide 31
The new solar array is located at Milan, New Hampshire, north of Mount Washington.
Borrego Energy, who has experience with solar programs, is building the project.
The panels are single axis tilt. in the morning the panels tilt towards the east and in the
evening towards the west, to maximize the irradiance of the sun.
The benefit of this project is that It allows for increased output. It is in the best interest
of developers and operators, to ensure that the single axis tracker works all the time,
since RMLD pays only for the actual output. This in tum benefits the RMLD, who wants
the maximum output.
Energy New England (ENE) Is proposing this utility scale project (109 MW AC). The total
output will be shared among ENE members; the RMLD will secure a portion of the
output, 35,000 MWh/yr, which represents 5% of the current RMLD portfolio.
The contract length Is twenty-five years and will be a decreasing piece of the portfolio,
as load Increases. The project Is anticipated to be commissioned In the early part of
2025. However, due to supply chain issues, ENE is realistically anticipating power output
in the fourth quarter of 2025.
This proposed power supply addition has associated Class 1 certificates; is renewable
and non -carbon; and is very well priced. Typically, solar renewables are 70% - BO%
higher than average, prior to discounts from certificate sales. This project is priced lower
due to the single axis tracker configuration.
Relative to RMLD's traditional power supply portfolio, large portions of supply will be
shifted to non -carbon, resulting in upward price pressure over time.
Mr. Phipps stated that he will present a graph at the next meeting that demonstrates
pricing over time, based on the locational marginal pricing forecast (LMP) as well as,
individual contracts with and without certificates.
From a purchase power perspective, RMLD has a significant amount of power coming in
from southern New England, whereas this project is in northern New England. The
geographic location of this solar array works to mitigate risk associated with issues that
may affect a certain geographical territory. If an issue does occur, keeping the
geography spread out reduces the negative impact on the overall reliability of our supply
network.
Ms. Site asked a question; is there an alternative to the single access tilt? Mr. Phipps
responded that there are fixed (most common), and dual axis. In this case, the single
axis tilt is relative to the sun (east to west rotation). for maximization sun on the panels.
Typically, the RMLD tries to avoid axis rotation. However, the developer is motivated to
maintain those mechanisms all the time, to ensure more energy early and late in the
day.
Mr. Talbot asked a question regarding geographical risk mitigation. Mr. Phipps cited
examples of potential issues that effect a certain location: clouds, thunderstorms,
transmission lines down, etc. If that supply is down, then the RMLD would have to buy
on the market, likely at a higher cost. Spreading risk type and geography reduces this
risk.
Vice Chair Pacino asked a question, which was also raised by the CAB, regarding the
45% higher than the RMLD portfolio average. Mr. Phipps responded that currently the
RMLD Power Supply Portfolio is comprised of roughly 50% mixed (natural gas) and 50%
non -carbon resources. Currently, the cost of non -carbon resources (including retiring
certificates verses selling) is higher than natural gas resources. Typically, In this context,
solar is about 80% higher than the overall portfolio average. For this project, partly due
to the single axis, the pricing is 45% higher on a dollar per megawatt basis than the
2021 RMLD portfolio average.
Mr. Phipps discussed the Implications of the 2021 Climate Law and Policy 30 on cost;
noting that the RMLD is migrating the portfolio to non -carbon by 2050. Moving forward it
Is likely that a large portion of natural gas generation will be retired, and the remaining
portion will be in standby mode, for reliability; Mr. Phipps cited the example of a
windless, cloudy, rainy day in August.
Now, some natural gas facilities run 5000 hours a year and this will likely drop in the
future to 700 hours a year. As the capital and operating costs of these facilities will need
to be paid, what Is Inexpensive natural gas now will become expensive natural gas,
more expensive than renewable resources by 2040-2050. This highlights the benefit to
filling out the portfolio with long term contracts to lock in pricing.
Vice Chair Pacino made a motion, seconded by Ms. Bite, move that the Board of
Commissioners, on the recommendation of the Citizens' Advisory Board, vote to accept
the General Manager's recommendation to contract with Borrego Solar for energy and
Class 1 certificates, from a to -be -built 109 -megawatt solar project near Berlin, New
Hampshire, known as Milan Road, pending environmental justice review.
Motion Carried: 4:0:1 (4 in favor, 1 absent). Roll Call: Vice Chair Padno, Aye; Mr.
Talbot, Aye; Ms. Bits, Aye; Chair Coulter, Aye. Mr. Stempeck was absent.
Hydro Addition to Power Supply
Hydro First Liaht Extension (slide 4)
The RMLD has existing hydro contracts In southern Connecticut, with several contracts
set to expire in 2024. The RMLD is looking for approval of a six-year extension on the
existing First Light hydro agreement through 2030 with the additional opportunity to
take a higher percentage of project output. This project Is organized by ENE, hence,
RMLD only takes a percentage of it. Although the RMLD would like to extend this
agreement longer, First Light is only willing to do a six-year extension for the entire
group.
ftBe 18
Mr. Phipps reported on the volume, term, certificates, and pricing, as outlined on slide 4.
Mr. Phipps noted the various benefits such as the fact that First Light is a strong entity,
the cost is good, and the output complements solar in the portfolio.
Mr. Phipps discussed the concept of "ponding", which adds additional value for
entitlement holders (RMLD). "Ponding" allows the facility to shift the output by hours,
giving them the Flexibility to let water levels rise and fall. This is particularly beneficial
when output can increase during peak hours.
Even though this Is an existing contract, the RMLD will conduct an environmental justice
review.
Vice Chair Pacino made a motion, seconded by Ms. Bits, move that the Board of
Commissioners, on the recommendation of the Citizens' Advisory Board, vote to accept
the General Manager's recommendation to contract with First Light for energy and Class
2 certificates, from existing hydro facilities known as Shepaug and Stevenson, pending
environmental justice review.
Motion Passed: 4:0:1 (4 in favor, 1 absent) Roll Call: Vice Chair Pacino, Aye; Ms. Bite,
Aye; Chair Coulter, Aye; Mr. Talbot, Aye. Mr. Stempeck was absent from the vote.
3Q2021 Quarterly Non -Carbon Certificate Update (slide 5)
Mr. Phipps provided a reminder that one certificate is equal to one megawatt hour that
comes from a non -carbon source. There is a transaction window for transacting Q3 2021
certificates (January 15 - May 15).
• Ooenmo balance: 3,600 (from Q2 2021)
•
Acquired: - 59,000
• Retirino: - 43,000 (23%)
• Sell - 14,800 (Normally 80%; Q3 70%)
• Endina Balance: - 4,800 (Normally 20%; Q3 30%)
The acquired balance for each quarter remains consistent because the amount is tied
into long term contracts that are in place. A rise or fall in the balance occurs based on
seasonal output and the opening and closing of contracts.
In Q3 202170% of certificates were sold and 30% were held compared to the usual
80% sold and 20% held. This Is to allow for Flexibility in Q4 If more certificates are
needed for retirement, as Seabrook was going through a refueling period in October of
2021. Hence, no power was provided, and therefore no associated EFECs.
Five -Megawatt Additional Storage Battery at Station 3 Update (slide 6)
In addition to the current minute man battery storage system, RMLD is looking to add
more battery storage to the portfolio.
Mr. Phipps discussed the reduction of peak loads; transmission and capacity costs; the
function of time shifting; and the removal of the FERC reconstitution constraint.
The chart on the bottom left of slide 6 demonstrates the load from last August at Station
3; the purple line represents the load; the blue and yellow lines represent running the
battery and generator during peak hours.
Battery storage systems are an Important part of the cost management system.
Capacity and transmission costs are calculated on what the load was during the annual
rapacity peak and the monthly transmission.
Mr. Phipps discussed the forecasted financials and noted that the RMLD's intention is not
to buy the asset, but to utilize an Energy Storage Agreement.
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Five -Megawatt New Battery Storage at Solar Choice 2 (slide 7)
Mr. Phipps reported on the battery storage tied to an existing solar array located at
Fordham Road, Wilmington, as outlined on slide 7.
The developer, Kearsarge energy (Boston based) is proposing to add a 5MW/IOMWH
storage system to this site.
Mr. Phipps reported on the structure of the agreement, and the proposetl forecasts. Most
MLPs are accelerating their adoption of battery systems; RMLD is looking to add 25-30
megawatts by 2024. Mr. Phipps noted that the RMLD is looking at issues relating to
safety.
(slide 8)
Mr. Phipps discussed the RMLD goal of increasing non -carbon generation within RMLD
territory.
This initiative is part of the Electrification Efficiency Charge (EEC), which was recently
Increased from one tenth of a cent to three tenths of a cent. Funds are allocated to both
residential programs and commercial programs.
In the past commercial programs have accounted for most EEC funds. However, last
year the lighting Incentive program was discontinued as all lights are already LED. Most
RMLD efficiency programs are custom, and the RMLD wanted to provide additional funds
for a C&I incentive to encourage solar participation within that customer base.
Mr. Phipps discussed the current course of action to Increase the system rebate limit;
matching the rebate amount (;1,200 / kW) to the residential incentive; the benefit
payback; and the overall action plan.
7. FERC Accountino Trainino
Materials: Board Packet "FERC Accounting" Attachment 4 (PDF)
RMLD Financial Reporting Compliance (slide 2)
Ms. Markiewicz presented on the financial reporting compliance that the RMLD adheres
to, as outlined on slide 2.
• GAAP (Generally Accepted Accounting Principles) is the foundation for approved
accounting methods and standards (training and accounting degree)
• GASB (Governmental Accounting Standards Board) is the accounting reporting
standards for state and local governments and Is now being taught in colleges.
• FERC (Federal Energy Regulatory Commission) is a uniform system of accounts for
public utilities. FERC guidance can be found in a standard instruction book (rarely
updated) and is self-taught and peer trained in municipalities.
FERC Chert of Accounts (slide 3)
The specific FERC chart of accounts Is dictated by the type of organization; RMLD Is
mainly a distribution company. A portion of the chart of accounts does not fall in line
with corporate accounting as outlined on slide 3.
FERC Chart of Accounts (slide 4)
Ms. Markiewicz reported on the common FERC plant accounts, as outlined on slide 4.
Ms. Marklewicz referenced the annual capital budget presentation by Mr. Jaffar, which
outlines all capital projects. Every capital project at RMLD must be properly reported In
accordance with FERC compliance, so when the department files the Department of
Public Utilities Return, the entire plant Is captured appropriately. The FERC chart of
accounts provides comparative Information for all municipalities to use throughout the
year for a variety of purposes.
P•qe 1 10
Ms. Marklewicz stated that transformers and meters are the only assets that are
capitalized Immediately when they hit RMLD grounds. Regardless of whether these
assets are placed in service or not, they are depreciated immediately.
General Plant
With the continuing advances in technology, and lack of updates to the FERC guidelines,
the RMLD has separated out (382) computer hardware and (383) software, Inside of
(391) Office Furniture and Equipment. The Intention of this is to understand and keep
track of hardware and software expenses individually.
Capital Project Example (slide 5)
Ms. Marklewicz Provided a capital project example, as outlined on slide S. There are a
variety of different accounts within each capital project. Ms. Markiewicz noted that even
when employees are recording their time, they need to understand the proper FERC
allocation. The RMLD captures the best categories as feasibly possible, as the categories
are not all inclusive. Ms. Marklewicz reviews every invoice and ensures that expenses
are charged appropriately.
Ms. Markiewicz discussed the examples of the new Wilmington Substation, Grid
Modernization & Optimization, Outage Management System, and AMI mesh network.
These examples provide a broad overview; within each FERC account there may be
additional accounts relative to the project.
FERC Operations and Maintenance Expenses (slide 6)
Ms. Marklewicz presented the FERC operations and maintenance expenses as outlined on
slide 6 and highlighted the relation to the profit and loss statement. Understanding FERC
accounting translates to understanding how expenses are related.
FERC General 6 Administration Expenses (slide 8)
Ms. Marklewicz presented on FERC general and administration expenses as outlined on
slide 8, Expenses allocated to this category demonstrate the actual expenses for
handling customers, their accounts, bills etc.
FERC 930 Miscellaneous General Expenses (slide 9)
Ms. Markiewicz presented on FERC 930 miscellaneous expenses as outlined on slide 9.
This chart of accounts is specific to FERC and encompasses anything that doesn't below
somewhere else. RMLD is constantly researching to identify where everything belongs.
it Is important to ensure that reporting Is consistent; and the profit and loss is
consistent year to year as to where funds are allocated. Any expenses that are moved
are identified and noted accordingly.
8. Scheduling
The next board meeting will be held on March 24, 2022.
CAB: Meeting Coverage: Mr. Stempeck
AP: Ms. Bits
Payroll: Mr. Talbot
9. Executive Session
At 9:02 PM, Vice Chair Pacino made a motion, seconded by Mr. Talbot, 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 the deployment of security personnel or devices, or
strategies with respect thereto and return to regular session, for the sole purpose of
adjournment.
Motion Carried: 4:0:1 (4 In favor, 1 absent) Roll Call: Mr. Talbot, Aye; Ms. Bita, Aye;
Vice Chair Pedro, Aye; Chair Coulter, Aye.
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10. Adjournment
At 9:32 PM Vice Chair Paclno made a motion, seconded by Mr. Talbot, to adjourn
Motion Carried: 4:0:1 (4 In favor, 1 absent) Roll Call: Mr. Talbot, Aye; Ms. Oita, Aye;
Vice Chair Padno, Aye; Chair Coulter, Aye.
A true copy of the RMLD Board of Commissioners minutes as
approved by a majority of the Commission.
'�ti(' ' B 1�TG%NO
Phd,Pa nno Mry II, IDlll607)
Philip S. Paclno, Secretary Pro Tem RMLD Board of
Commissioners
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