HomeMy WebLinkAbout2023-10-25 RMLD Board of CommissionersOR t
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Board - Committee - Commission - Council:
RMLD Board of Commissioners
Date: 2023-10-25 Time: 6:00 PM
Building: North Reading Town Hall Location: Room 14
Address: 235 ST, North Reading, MA Session: Open Session
Purpose: General Business Version: Final
Attendees: Members - Present:
Philip Pacino, Chair; David Talbot, Vice Chair; Robert Coulter,
Commissioner; Marlena Bite, Commissioner; Pamela Daskalakis,
Commissioner.
Members - Not Present:
Others Present:
Citizens' Advisory Board (CAB): Vivek Soni, Chair (Reading); George Hooper
(Wilmington); Dennis Kelley (Wilmington); Jason Small (North Reading).
RMLD Staff: Gregory Phipps, General Manager; Erica Morse, Executive
Assistant; Benjamin Bloomenthal, Director of Finance and Accounting; Bill
Bullock, Director of Integrated Resources; Erin MacDonough, Operational
Assistant.
Presenter: Michael McNeley, Senior Manager, Project Development, Bloom
Energy; Jordan Garfinkle, Senior Manager, Policy & Government Affairs,
Bloom Energy.
Minutes Respectfully Submitted By: Philip B. Pacino, Secretary Pro Tem
Topics of Discussion:
Documents and exhibits used at this meeting can be found on the RMLD website in the BoC
meeting packet and linked here: Board of Commissioners Joint Meeting Agenda & Packet I
Readino Municipal Licht Dept frmld.com)
Call Meetina to Order
Chair Pacino called the RMLD Board of Commissioner's (BoC) meeting to order at 6:10 PM
and announced that the meeting would be held in person, remotely on zoom, and streamed
live on RCN and YouTube.
Chair Soni called the Citizens' Advisory Board meeting to order at 6:10 PM.
Opening Remarks and Introductions: Chair Pacino read the RMLD BoC Code of Conduct
and asked all remote attendees to identify themselves. Chair Pacino served as Secretary at
the meeting.
Commissioner Bita arrived at the meeting at 6:43 PM.
Mr. McNeley and Mr. Garfinkle left the meeting at 6:52 PM.
Mr. Small arrived at the meeting at 7:10 PM.
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Ms. Herrick left the meeting at 7:13 PM.
Commissioner Coulter arrived at the meeting at 7:23 PM.
Public Comment
There was no comment from the public at the meeting.
Report on the Citizens' Advisory Board Meeting
There was no report on the Citizens' Advisory Board at the meeting.
Approval of Board of Commissioner Meetina Minutes
The approval of the June 15, 2023, and July 18, 2023, open session minutes was tabled
until the next meeting.
Approval of Citizens' Advisory Board Meetina Minutes
The approval of the February 23, 2023, open session minutes was tabled until the next
meeting.
Carbon Captured Fuel Cell
Materials: Carbon Capture Fuel Cell Presentation (Joint Meeting Packet, Attachment 3)
Introduction - Bloom Energy Representatives
Mr. Phipps introduced the representatives from Bloom Energy: Michael McNeley and Jordan
Garfinkle.
Michael McNeley
Mr. Phipps noted that Mr. McNeley is part of the business operations team at Bloom Energy,
responsible for overseeing projects from their inception to delivery, with a special focus on
utility low carbon energy transition opportunities.
Mr. McNeley has over a decade of experience in energy storage, solar, and wind project
development and a Bachelor of Science in Material Science and Engineering from Rutgers.
University.
Jordan Garfinkle
Mr. Phipps noted that Mr. Garfinkle focuses on legislative and regulatory aspects enabling
distributed generation, hydrogen, and energy transition projects.
Mr. Garfinkle joined Bloom in 2020; prior experience includes six years with the Climate
Strategies Group at Mass DEP working on energy and climate projects.
Mr. Garfinkle has a Master of Science from the University of Michigan and a Bachelor of
Science from Saint Louis University.
Context — RMLD In Territory Generation (slide 3)
Mr. Phipps discussed RMLD in territory generation.
Mission and Strateov
Mr. Phipps reiterated RMLD's mission: to provide reliable, low-cost, and non-carton energy.
Mr. Phipps highlighted RMLD's ongoing strategy to explore and implement in territory
generation, RMLD is actively searching for opportunities to generate electricity within the
territory.
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Economics and Scale
Mr. Phipps highlighted the economic benefits of in territory generation, which has become
more cost-effective than importing from the wholesale market.
The size of RMLD and its growth trajectory is appropriate for the implementation of in
territory generation projects.
Reliability
Mr. Phipps emphasized the intention behind in territory generation is to improve reliability.
RMLD's reliability is very good, but ISO New England, who manages the wholesale market,
is prompting utilities to think about the adequacy of energy generation and transmission
over the next 5 to 10 years.
RMLD Goals
Mr. Phipps emphasized RMLD's commitment to meeting the targets set by the 2021 Climate
Bill: 50% non -carbon by 2030, 75% by 2040, and net zero by 2050.
RMLD's goal is to achieve 40% in territory generation and balance from the 60% wholesale
market by 2040.
Proiect Plans
Mr. Phipps noted RMLD's plans to implement a 20 MW base load generation system by
winter 2025/26 and pursue the Maple Meadows solar project despite a 12 to 18 -month
delay.
Mr. Phipps discussed RMLD's strategy to phase projects in blocks (10 to 30 MW) to allow
flexibility in response to market and load growth changes. This includes the adoption of
electric vehicles (EVs) and air source heat pumps (ASHPs).
In Territory Generation Options for RMLD (slide 4)
Mr. Phipps presented in territory generation options.
In Territory Expansion
Mr. Phipps discussed expanding in territory generation, with a focus on solar PV, hydrogen,
low temperature geothermal, and carbon -captured fuel cells.
Solar PV
Mr. Phipps noted that RMLD plans to maximize solar PV installation, with a potential
capacity of 40MWs (currently at 9MWs).
Mr. Phipps highlighted the current state and potential of solar PV. Solar, despite being
scalable up to 40M Ws, would contribute less than 10% to the total wholesale purchases due
to its capacity factor, which averages 17% in RMLD territory.
Hvdrooen Pilot
Mr. Phipps mentioned that RMLD is looking into a potential pilot project at Station 3 with an
electrolyzer company. The exploration of hydrogen is in the early stages, with a timeline of
8-15 years for potential implementation.
Low Temperature Geothermal
Mr. Phipps discussed the feasibility of low temperature geothermal energy and mentioned
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the challenge of bring far away from hot springs. Implementation is realistically 8+ years
away.
Carbon -Captured Fuel Cells
Mr. Phipps noted that combining fuel cell technology with carbon capture is an innovative
approach, and RMLD plans to be an early adopter of this combined technology.
Funding Opportunities
Mr. Phipps discussed the strategic approach to in territory energy generation and leveraging
funding opportunities from the Inflation Reduction Act (IRA22) and various grants.
Clarification on Goals
Commissioner Daskalakis inquired about achieving the 40% in -territory generation goal. Mr.
Phipps clarified that generating 5OMW base load would contribute significantly towards this
goal. Mr. Phipps emphasized the need to be proactive to stay ahead of potential challenges.
Bloom Energy at a Glance (slide 5)
McNeley provided an overview of Bloom Energy, a technology provider specializing in fuel
cells.
Company History
Bloom Energy originated from a NASA spin -out, and initially focused on hydrogen
technology before pivoting to natural gas due to the lack of a readily available hydrogen
supply. Despite this transition, the core system remains hydrogen -based, with a focus on
reforming methane for electric system compatibility.
Mr. McNeley detailed Bloom Energy's history as a long-standing, publicly traded company
with a significant global presence and domestic manufacturing capabilities.
Manufacturino
Mr. McNeley noted that the manufacturing process involves creating stack electrochemical
cells in San Jose, California, and assembling them into fuel cell boxes in Delaware. Mr.
McNeley discussed the company's domestic manufacturing approach, with all manufacturing
done within the United States.
Proiect Scale
Mr. McNeley mentioned a specific 30MW utility -scale project in Delaware as an example of
Bloom's project capacity, noting this as an older design without carbon capture technology.
Mr. McNeley highlighted Bloom's project scale, with over a gigawatt (1000 MWs) of projects
in the field, in relation to the 20 MWs projects being discussed.
Addressina Utility Stability
Mr. McNeley noted the challenges faced by utilities in the U.S. and Bloom's role in providing
reliable power solutions to customers in areas lacking proactive infrastructure investments.
Bloom Fuel Cell Overview — How it Works (slide 6)
Mr. McNeley provided an overview of the Bloom Fuel Cell.
Operation and Process
Mr. McNeley explained the basic operation of the fuel cell system, involving oxygen and
hydrogen. The process begins with natural gas undergoing a reclamation process to
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separate into CO and hydrogen. The CO and hydrogen then react with oxygen to produce
water, CO2, and other by-products.
CO2 Stream and Ouality
Mr. McNeley emphasized the potential for producing a high -purity CO2 stream, due to
robust natural gas quality in the project areas. This is beneficial for subsequent carbon
capture and utilization stages.
Mr. McNeley explained that the system's exhaust handling involves separating into two
streams: a cathode with air and an anode with a purer CO2 stream.
System Retrofit
Mr. McNeley mentioned plans to retrofit the system to capture and purify CO2 for various
applications.
Mr. McNeley highlighted the system's design for future conversation, allowing for a simple
retrofit to hydrogen. Mr. McNeley emphasized the infrastructure's readiness for a transition
to hydrogen when feasible.
CO2 Reclamation and Efficiency
Mr. Phipps highlighted the CO2 reclamation process. Mr. McNeley affirmed the importance of
capturing exhaust, processing it, and recycling unutilized CO2 and other by-products back
into the system to enhance efficiency further.
Key Differentiators and Net Benefits
Mr. McNeley highlighted the non -combustion electrochemical reaction as a key differentiator
for fuel cells, offering environmental benefits over traditional combustion processes.
Mr. McNeley emphasized the net benefits of the system, including efficiency improvements
and the potential for CO2 utilization beyond the primary energy generation process.
Carbon capture Overview (slide 7)
Mr. McNeley provided an overview of the carbon capture system.
Mr. McNeley discussed the two main outputs of fuel cell technology: low carbon electricity
and CO2 as a resource.
Market Opportunities
Mr. McNeley highlighted a significant market opportunity arising from the lack of local CO2
sources, with current supplies being transported from distant locations, thereby increasing
emissions from the transportation activity.
Industry Support
Mr. McNeley emphasized the potential to support industries like pharmaceuticals, food and
beverage, and the growing demand for sustainable construction materials.
Business Model
Mr. Phipps provided an overview of the business model, emphasizing the desire for in -
territory energy generation and the benefit of the additional revenue stream from selling
CO2.
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Mr. Phipps emphasized RMLD's mission towards reliable, low-cost, and non -carbon energy
and its alignment with compliance obligations.
Environmental and Economic Impact
Mr. McNeley noted the potential for creating a microcosm of interrelated businesses in the
Greater Boston area, leveraging the fuel cell technology for electricity, and utilizing CO2 in
various industries. Mr. McNeley emphasized the environmental and economic benefits of
such an ecosystem.
Efficiency Discussion
Vice Chair Talbot asked a question relative to the efficiency of converting natural gas to
electricity in comparison to traditional combined cycle natural gas power plants. Mr. Phipps
responded that there would be a more detailed discussion in the following slide.
Real -World Benefits (slide 8)
Mr. Garfinkle discussed the benefits of the carbon capture fuel cell system.
Efficiency
Mr. Garfinkle clarified the relationship between the fuel cell's efficiency and its ability to
capture carbon emissions, noting that efficiency does not compromise carbon capture rates.
Vice Chair Talbot made several inquiries centered on understanding the efficiency of
converting natural gas to electricity and how Bloom's technology compares with traditional
power generation methods.
Mr. Garfinkle noted the unique benefits of the fuel cell, including higher CO2 concentration
and the absence of combustion, which avoids particulate emissions.
Mr. Garfinkle highlighted that the fuel cell's efficiency is - 54%, comparable to that of
combined cycle natural gas power plants but with the added advantage of capturing a high
rate of carbon emissions. This aspect is crucial, given the technology's ability to produce low
carbon electricity and capture CO2 for various uses, such as the production of sustainable
building materials.
Reaulatory Context
Chair Soni raised questions about regulatory benchmarks for gas-fired power generation
and the potential for earning certificates through enhanced efficiency and carbon capture.
Mr. Phipps confirmed CEC certificates eligibility and linked the discussion to compliance
obligations and the broader business model of generating additional revenue through CO2
sales.
Operational Advantages
Vice Chair Talbot confirmed the benefit of in -territory generation, reducing transmission
losses and supporting local energy needs.
Mr. Garfinkle addressed questions about system degradation and maintenance, noting the
modularity of the fuel cells allows for easy replacement of components to maintain
efficiency.
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Chair Soni inquired about the scale of projects implementing carbon capture. Mr. McNeley
mentioned ongoing larger -scale projects and the strategic approach to integrating carbon
capture with the base fuel cell technology.
Mr. McNeley discussed the practical aspects of implementing Bloom's technology, including
the modularity of the fuel cells, system reliability, the importance of gas supply stability and
purity, and the innovative approach to carbon capture.
Partner Engagement
Mr. McNeley potential CO2 off -take agreements and the importance of engaging with
partners to ensure efficient and reliable carbon capture solutions.
System Reliability and Modular Desian
Mr. Phipps and Mr. Garfinkle discussed the operational strategy to maximize uptime and
efficiency, noting plans to run the system for most of the year, barring maintenance.
Mr. Garfinkle illustrated the resilience and reliability of the system with an anecdote,
emphasizing the advantages of its modular design for continuous operation.
Preliminary High -Level Economies (slide 9)
Mr. Phipps discussed the preliminary economics of the project.
Overview and Estimate
Mr. Phipps discussed preliminary plans for a 20 MW carbon capture fuel cell system project,
highlighting the aim is to achieve reliable, low-cost, non -carbon energy production within
RMLD's territory.
Mr. Phipps noted an initial cost estimate exceeding $100m and emphasized the need for
collaboration among multiple participants to finance the project.
Land Accuisition and Site Reouirements
The project requires approximately four acres of land for equipment only and RMLD is
actively pursuing land acquisitions.
Mr. Phipps discussed potential and current sites under RMLD control and highlighted the
highlighting the importance of proximity to natural gas supplies.
Natural Gas Supply and Forecast
Mr. Phipps mentioned the availability of natural gas in the territory and potential sources for
reliable and low-cost supply.
Mr. Phipps discussed the natural gas market's forecasted decline in demand over the next
decade due to the increased adoption of air source heat pumps and retirements of combined
cycle natural gas facilities.
RMLD Portfolio
The project complements RMLD's existing energy portfolio, with a focus on enhancing
reliability and sustainability.
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Mr. Phipps highlighted various financing options including investment tax credits, discounts,
grants, and direct investments.
Mr. Phipps provided a comparison of the projected energy cost from the fuel cell system to
current wholesale costs and the economics of alternative solar projects.
Implementation Timeline and Process
Mr. Phipps noted that the aim for project completion is in the next 2.5 years and
acknowledged the significant amount of work and planning required in the upcoming
months.
Site Plannina and Desion Flexibility
Mr. Phipps discussed the specific site requirements and configurations for the fuel cell
system and carbon capture technology. The modular nature of the technology offers
flexibility in site design to accommodate environmental and spatial constraints.
Strategic Goals and Reliability
Mr. Phipps emphasized that the project is part of RMLD's broader strategy to enhance
energy reliability within its territory.
Rates Presentation
Materials: RMLD Board Packet (attachment 4)
Mr. Bullock presented the proposed rates for March 2024 to the BOC and CAB,
Rates — goals and objectives (slide 3)
Mr. Bullock discussed the goals and objectives of RMLD rates.
Goals and Outcomes
Mr. Bullock highlighted the goals of RMLD's rates, citing the examples of covering costs for
providing service, funding efficiency and electrification initiatives and complying with DPU
and RMLD policies.
Mr. Bullock emphasized the importance of forecasting loads, setting retail sales by customer
class, and refining cost allocations across rate classes.
2024 Expenses
Mr. Bullock highlighted the expected expenses for 2024: certificates (5%), capacity costs
(15%), transmission (20%), energy (31%), and operating costs (29%) as key components
of the cost structure.
Certificate Clarification
Chair Soni sought clarification on why certificates were listed as an expense. Mr. Phipps
clarified that the chart on slide 3 should be titled 2026 expenses (not 2024) and explained
that the cost attributed to certificates is essentially net neutral.
Mr. Phipps explained that RMLD purchases certificates associated with energy, and then
sells or retires those certificates. Mr. Phipps elaborated on RMLD's approach to managing
certificates and noted that it is not a profit but a recovered cost.
Mr. Phipps suggested having a detailed discussion on certificate strategy in December to
provide further clarification.
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2024 RMLD monthly bills - 8.4% proposed increase (slide 4)
Mr. Bullock discussed the proposed increase in monthly bills.
2024 Rate Increase and Adjustment
Mr. Bullock reported an anticipated average rate increase of 8.4% over the 2023 monthly
bills according to the current projected cost structures.
Mr. Bullock emphasized the presented rate adjustment is necessary to manage the rising
costs associated with power supply and transmission.
Drivers of Enerav Cost
Mr. Bullock highlighted the two key variables affecting customer energy costs: monthly
usage and power supply cost.
Fuel and Transmission - Costs and Solutions
For 2024, the fuel costs are projected to be 5.2% higher than in 2023, and transmission
costs are forecasted to be 14% higher. Mr. Bullock emphasized that the increase in
transmission costs is a critical issue, prompting RMLD to pursue in -territory generation to
mitigate these costs.
Mr. Bullock noted that RMLD is exploring dispatchable battery generation and base load in -
territory generation as solutions to offset costs. To illustrate potential savings, Mr. Bullock
cited the example of a potential Bloom fuel cell project.
Transmission Lines
Chair Soni asked about transmission line connections. Mr. Bullock explained that RMLD is
connected to both Eversource and National Grid transmission lines and is charged each
month based on peak usage.
Rate Increase Justification
Mr. Small sought clarification on the reasoning behind the rate increase and all contributing
factors to the rate adjustment. Mr. Phipps clarified that the 8.4% rate increase is not solely
due to power supply costs but also includes operating costs.
Summary of monthly bill changes - March 2024 (slide 5)
Mr. Bullock presented the summary of monthly bill changes.
Rate Increase Impact
Mr. Bullock provided a detailed breakdown of the anticipated impact of the rate increase on
different customer classes. Mr. Bullock highlighted those residential customers will see a
7.6% increase, translating to an average monthly bill increase from $148 to $159.
Cost Distribution
The proposed structure aims to distribute the cost increase more equitably across all
customer classes. Residential customers have previously borne a significant portion of rate
increases, and the goal is to ensure fair allocation across classes and balance that out.
Time of Use Rate
Commissioner Bita asked about the time of use rate increase. Mr. Bullock explained that
time of use rates require more management and investment. These rates are still low and
remain attractive and beneficial for customers willing to manage their energy usage
accordingly.
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Rate Stabilization Fund Clarification
Commissioner Bita questioned the role of the Rate Stabilization Fund in the context of the
current rate adjustments.
Mr. Phipps clarified that the rate stabilization fund serves as a contingency for unforeseen
wholesale market volatility or significant supply cost fluctuations, rather than for
accommodating operational and power supply cost changes.
Capital Expenditure and Rates
Chair Soni highlighted the balance between the rate increase and the need for significant
capital expenditure, noting the importance of generating funds to support capital projects.
Residential A — March 2024 — MDPU 309 (slide B)
Mr. Bullock discussed the rate structure using the Residential A rate example.
Commissioner Daskalakis sought clarification on whether the 8.4% rate increase was a
direct customer charge or a projection based on assumptions. Mr. Phipps referenced slide 8
and provided an in-depth explanation of the unbundled rate structure, including fixed and
variable components.
Fixed and Variable Rate Examples
Mr. Phipps cited examples of the fixed rates: the customer charge, distribution energy
charge, and distribution demand charge. Mr. Phipps cited examples of the variable rates:
the fuel adjustment, NYPA credit, and PPCT (capacity/transmission).
Pass Through Costs
Mr. Phipps emphasized the pass-through nature of fuel, capacity, and transmission costs.
Mr. Phipps highlighted efforts to dampen variability through the fuel reserve fund.
Discussion, comments, and questions on the Rate Adjustment
Capital Financing Options
Ms. Herrick commented on the necessity of investing in capital and suggested financing
large-scale infrastructure projects through bonds, leveraging the town's AAA bond rating.
Ms. Herrick advised coordinating with town officials for scheduling such initiatives,
emphasizing the potential for a more cost-effective approach to capital investment.
Average Rate Increase Calculation
Mr. Kelley questioned the calculation of the average rate increase and noted a discrepancy
that suggests a higher increase than 8.4%. Mr. Phipps and Mr. Bullock clarified that the
8.4% figure is a weighted average based on kilowatt-hour sales and total revenue.
Mr. Phipps and Mr. Bullock emphasized that individual rate adjustment impacts will vary,
due to the diversity of usage across customer classes.
Perceived Rate Increase Concerns
Chair Pacino and Mr. Kelley acknowledged the technical accuracy of the weighted average
calculation, but expressed concerns that the public perception might equate the adjustment
to a 10% increase.
Rate Stabilization Fund
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Chair Pacino asked about potential use of the Rate Stabilization fund to mitigate the rate
increase. Mr. Phipps emphasized the necessity of the increase to support capital
investments driven by legislative mandates for electrification and leave rate stabilization for
extreme events.
bona rmanana uiscussion
Chair Pacino asked about the possibility of using bond financing to spread out the cost of
significant capital expenditures. Chair Pacino referenced Ms. Herrick's previous suggestion of
leveraging the town's AAA bond rating to finance projects at a potentially lower interest rate
than the cost implications of an immediate rate increase.
Analysis of Financina Options
Mr. Small asked if RMLD has conducted a detailed comparison of financing options, including
the impact of raising depreciation rates versus bonding large projects.
Mr. Phipps noted that RMLD prefers to delay bonding as much as possible to avoid
incremental costs to ratepayers but acknowledged that a detailed analysis could provide
clarity on the least impactful approach.
Cost Allocation Between Customer Classes
Vice Chair Talbot asked a question regarding the cost disparity between residential and
Industrial customers. Mr. Phipps discussed economies of scale and the detailed cost analysis
conducted as part of the RMLD's rate study.
Mr. Phipps and Mr. Bullock explained that industrial customers, due to their higher usage,
inherently incur lower per-unit costs to RMLD to serve this load and this influences the
differential in rates between customer classes. Chair Soni clarified that you pay for the
electricity you use.
Controllable and Uncontrollable Costs
Commissioner Daskalakis mentioned the breakdown of costs, distinguishing between
controllable and uncontrollable costs.
Commissioner Daskalakis highlighted that while there are projections for energy and
transmission cost increases, only a fraction of these costs is within the control of the
department (slide 4) Mr. Phipps agreed that it is essential to consider what customers
perceive in terms of their bills.
Commissioner Daskalakis suggested focusing on areas where influence can be exerted, such
as labor costs and salary increases.
Mr. Phipps noted that labor costs are the largest driver of expenses and mentioned the
impact of being in a unionized environment, where certain increases, such as healthcare
costs, are required.
Mr. Bullock mentioned that additional funding is needed for the increase in the electrification
fund and the weatherization program.
Time of Use Rate Discussion
Commissioner Daskalakis inquired about time -of -use rates and customer communication
strategies.
Mr. Phipps discussed the limitations of RMLD's current metering infrastructure and customer
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adoption rates for time -of -use rates. Mr. Phipps emphasized RMLD's desire to encourage
more participation in such programs in the future.
Chair Soni shared his experience of inquiring about time -of -use rates and indicated that it
may not be suitable for everyone based on their load profile.
Mr. Small commented on the adoption rate of time -of -use rates among residential
customers, noting that it's relatively low and mainly concentrated in the commercial and
industrial sectors.
Rate Increase and Cost Control Discussion
Commissioner Coulter expressed concerns about the magnitude of the rate increases and
suggested presenting controllable costs separately from pass-through costs.
Commissioner Coulter advocated for a more conservative approach to rate adjustments to
avoid significant jumps in customer bills.
Mr. Phipps elaborated on the process of rate adjustments and the need for consistency with
forecasted income statements.
Vice Chair Talbot asked a question relative to the impact of inflation on the rates. Mr.
Phipps estimated that without inflation, rate increases might be around 3-4%. Mr. Phipps
emphasized the need to balance conservative budgeting with maintaining competitive rates.
Rate Increase Trends Discussion
Mr. Kelley commented on the trend of rate increases over the years and expresses concern
about RMLD's position relative to other municipal light departments (MLPs).
Mr. Phipps noted that RMLD is in a very different energy world than in the past and
highlighted some of RMLD's initiatives to remain ahead of the curve, such as within territory
generation. Mr. Phipps emphasized the importance of maintaining competitive rates while
ensuring reliability.
Mr. Hooper and Mr. Small expressed their support for Mr. Kelley's concerns and
acknowledged the challenges of balancing reliability with cost competitiveness.
Chair Pacino emphasized the importance of effectively communicating rate changes to
customers. Mr. Phipps agreed with the need for transparency and effective communication
with customers during the rate adjustment process.
Rate Filing Discussion
Chair Pacino sought clarification on if rates may change during the filing process due to
factors like fuel costs.
Mr. Phipps explained that while certain factors like fuel costs may fluctuate, the core
components of the rates will remain consistent with the presented figures.
It was clarified that the rates that are presented and voted on will not change, however
monthly bills may fluctuate due to variables such as power supply costs, which are pass
through costs and are typically adjusted monthly.
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The GM to provide an update on the projected customer bill increases at the January 2024
BoC and CAB meetings, when 2024 power supply costs will be better forecasted.
Chair Talbot asked a question relative to time of use rates and customer class rate
disparities.
Vote on January Rate Review
Chair Pacino made a motion, seconded by Commissioner Coulter, that the Board of
Commissioners instruct the General Manager to return to the January 2024 meeting to
review the costs that make up behind the rates. Motion Carried: 5:0:0 (5 in favor, 0
against) Roll Call Vote: Chair Pacino, Aye; Vice Chair Talbot, Aye; Commissioner Coulter,
Aye; Commissioner Bita, Aye; Commissioner Daskalakis, Aye.
Vice Chair Talbot made a motion, seconded by Commissioner Daskalakis, that the RMLD
Board of Commissioners direct the General Manager to provide at the January 2024
meeting, options on how RMLD can increase use of time -based rates to reduce peak costs
and provide a report on how residential verse industrial rates compare over time on a
percentage basis. Motion Carried: 5:0:0 (5 in favor, 0 against) Roll Call Vote: Chair
Pacino, Aye; Vice Chair Talbot Aye; Commissioner Coulter, Aye; Commissioner Bita, Aye;
Commissioner Daskalakis, Aye.
Vote on March 2024 Rates
Mr. Hooper made a motion, seconded by Mr. Kelley, the Citizens' Advisory Board
recommend that the Board of Commissioners vote to accept the General Manager's
recommendation to replace the following MDPU rates effective for billings on or after March
1, 2024:
• Replace 301 Residential Schedule A with 309
• Replace 302 Residential Time of Use Schedule A2 with 310
• Replace 303 Commercial Schedule C with 311
• Replace 304 Industrial Time of Use Schedule I with 312
• Replace 305 School Schedule SCH with 313
Motion Carried: 4:0:1 (4 in favor, 1 absent) Roll Call Vote: Chair Soni, Aye; Mr. Hooper,
Aye; Mr. Kelley, Aye; Mr. Small, Aye. (Vice Chair Welter was absent from the meeting.)
Commissioner Daskalakis made a motion seconded by Commissioner Bita, that the Board
of Commissioners, on the recommendation of the Citizens' Advisory Board, vote to accept
the General Manager's recommendation to replace the following MDPU rates effective for
billings on or after March 1, 2024:
• Replace 301 Residential Schedule A with 309
• Replace 302 Residential Time of Use Schedule A2 with 310
• Replace 303 Commercial Schedule C with 311
• Replace 304 Industrial Time of Use Schedule I with 312
• Replace 305 School Schedule SCH with 313
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Motion Carried: 3:1:1 (3 in favor, 1 against, 1 present) Roll Call Vote: Chair Pacino,
Present; Vice Chair Talbot, Aye; Commissioner Coulter, Nay; Commissioner Bita, Aye;
Commissioner Daskalakis, Aye.
CY2024 Budaet
Mr. Bloomenthal presented the 2024 calendar year budget to the BOC and CAB.
CY 2024 Budget Process: Where have we been and where are we going? (slide 2)
Budaet Process Timeline
Mr. Bloomenthal outlined the budget process timeline and highlighted key milestones.
• June/July: The process begins with a request for preliminary budgets from the divisions
• August: Preliminary budgets are consolidated, and labor distribution tables are updated
• September: Involves the assembly of budget modules, preliminary numbers, and
adjustments based on supply information.
• October: A presentation on the proposed budget is made to the BoC and CAB.
Procurement Process Improvements
Mr. Bloomenthal highlighted RMLD's efforts to refine the procurement process, aiming for
efficiency and streamlined operations.
Transition to New Budaet Year
The transition to a new budget year is critical for beginning the closure of the previous
year's budget. This process includes closing out purchase orders and requisitions from the
current year.
CY 2024 Budget (slide 3)
Mr. Bloomenthal highlighted the key budget elements for 2024: operating budget, capital
budget, and rates.
Mr. Bloomenthal presented the 2024 operating year budget to the BoC and CAB
2024 Operating Budget CY 2023/2024 Comparative Budgets - Revenue (slide 5)
Mr. Bloomenthal highlighted the budgeted and projected revenue.
Budaeted and Proiected Revenue
Mr. Bloomenthal noted that the CY 2023 budgeted revenue is $109m and the CY 2023
projected revenue is $104m.
Budgeted vs. Proiected Variance
Mr. Bloomenthal explained that the CY 2023 variance was primarily due to fuel revenue
adjustments and energy market savings.
2024 Operating Budget CY 2023/2024 Comparative Budgets - Income (slide 6).
Mr. Bloomenthal highlighted the budgeted and projected net income.
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Budgeted and Proiected Net Income
Mr. Bloomenthai noted that the CY 2023 budget net income was under $lm and the CY
2023 current net income projection is $15.7m.
Budoeted vs. Proiected Increase
Mr. Bloomenthal noted that the significant increase in the projected amount is due to
reduced power supply expenses and energy market savings, resulting from strategic
management and operational efficiencies.
2024 Operating Budget - 2024 Power Supply (slide 8)
Mr. Bloomenthal discussed 2024 Power Supply in relation to the CY 2024 Budget.
kWh Sales & Load Growth Forecast.
Mr. Bloomenthal noted that the 2024 forecast is 660 million kWh and the 2025 forecast is
724 million kWh. The expected base load growth rate is - 1% annually.
Percent of Enemy - Hedged
90% of energy for 2023 and 2024 is hedged, incorporating wind, hydro, and solar to
manage costs.
Percent of Enerav - Open Market
10% of energy remains open to market volatility and price, which impacts operating
revenues due to increasing transmission, capacity, and fuel costs.
Operating Revenues - Increase
Mr. Bloomenthal emphasized that operating revenues are expected to incrementally
increase from $150m in the upcoming years, eventually adjusting to $138m by CY 2029.
Clarification- Capacity and Transmission Costs
Commissioner Bita asked for further clarification on the forecast.
Mr. Bloomenthal responded by providing a detailed explanation of the capacity costs trend,
highlighting a decrease followed by an eventual increase in costs.
Capacity Costs
Mr. Bullock explained the role of capacity costs within ISO New England and the expected
decrease due to more renewable energy sources coming online.
Transmission Costs
Mr. Bullock highlighted an anticipated increase in transmission costs due to infrastructure
development supporting renewable energy sources, with a stabilizing trend over time.
2024 Operating Budget - 2024 Non -Power Supply (slide 9)
Mr. Bloomenthal discussed other significant components of RMLD's operating costs.
Cost Composition & Key Areas
Mr. Bloomenthal noted that operating costs, excluding power supply, constitute 29% of the
total budget.
Mr. Bloomenthal highlighted major areas of operating costs: labor, electrification and
efficiency programs, customer billing.
Labor
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Mr. Bloomenthal confirmed that the 2024 labor budget includes 107 positions. There are
currently 92 positions, including seven Co-op students.
Mr. Bloomenthal mentioned the addition of 18 positions to support infrastructure expansion,
including a tree crew, a Director of Engineering, and a Director of Operations.
Electrification and Efficiencv Programs
Mr. Bloomenthal highlighted key expansions to RMLD's Electrification and Efficiency
Programs, such as a new weatherization program with added incentives.
Solar and ASHP Installations
An increase in solar and ASHP installations is projected for 2024.
Pass-throuah Power Supply Costs
Mr. Bloomenthal emphasized the variable nature of power supply costs, which are a pass-
through expense.
Internal Tree Crew Discussion
Commissioner Coulter asked about reducing labor expenses and questioned the addition of
an internal tree crew.
Mr. Phipps responded by discussing the financial rationale behind the proposal to bring tree
trimming services in-house, aiming to reduce costs from $1.5m to $lm annually.
Commissioner Coulter raised concerns about operational efficiency, including handling of
vacation and sick leave by in-house staff, which could negate potential savings.
Commissioner Coulter emphasized the high efficiency of external crews and their
adaptability to workload changes, especially during storm events.
Commissioner Daskalakis expressed concerns around efficiency of storm response and
availability of in-house crews vs. outsourced resources.
Mr. Small noted that tree trimming services for electric utilities now require prevailing wage
rates, which has increased costs and reduced the financial gap between in-house and
outsourcing.
Mr. Phipps noted that preliminary analysis supports the inclusion of tree crews in the budget
and anticipates long-term needs for tree management due to its critical role in maintaining
service reliability.
Chair Soni noted the market trend towards outsourcing. Mr. Phipps mentioned that smaller
utilities are moving in-house.
Mr. Phipps proposed a more thorough financial analysis to evaluate the true cost
implications of moving tree trimming in-house, with consideration of factors such as
prevailing wages and operational efficiencies.
The strategic value of having in-house trimming capabilities was discussed. Immediate cost
savings and long-term operational benefits such as improved reliability and control over tree
management activities were considered.
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The impact of moving to an internal tree crew on RMLD's budgets was discussed. The
operating versus capital expense allocations and the impact on overall financial planning
were considered.
Mr. Phipps emphasized the need for careful financial planning.
Mr. Hooper asked about staffing considerations for the internal tree crew and the impact on
the operating budget. Mr. Phipps outlined the financial implications of outsourcing the tree
crew, estimating an addition of $BOOK to the operating budget.
Mr. Phipps suggested that in the context of the overall $31m capital budget, the cost of the
two tree trimming trucks would not significantly alter financial planning. Mr. Phipps
reiterated that this decision would have a minor effect on the capital budget.
Budget Approval
Mr. Phipps recommended that the BoC and CAB vote on the capital budget first while RMLD
conducts further analysis of the tree crew staffing, which would primarily affect the
operating budget.
Mr. Phipps proposed revisiting this issue at the next meeting to allow time for a more
detailed assessment.
The BoC and CAB agreed with the recommendation to proceed with the capital budget
approval and postpone the operating budget discussion related to the tree crew until a later
date.
2024 Capital Budget — Contextual Overview (slide 11)
Mr. Bloomenthal provided an overview of the 2024 capital budget.
Budget Totals & Increase
Mr. Bloomenthal noted that the total CY 2024 capital budget is $31m, while the total CY
2023 capital budget is $26m. The CY 2024 capital budget saw a $5m increase from CY
2023.
Increase Manaaement and Adjustments
Mr. Bloomenthal emphasized that $4m in reductions were made to manage the CY 2024
increase.
Mr. Bloomenthal highlighted key adjustments: adjusting expenditures in the EVSE program;
delaying aspects of the grid modernization program;
postponing service connections.
Mr. Bloomenthal emphasized that these strategic reductions and reallocations within the
capital budget support essential infrastructure projects and technological upgrades.
Investment in land Acquisition
Mr. Bloomenthal noted that $9m is allocated in the CY 2024 capital budget for land
acquisition in Wilmington to support load growth within the territory.
Major Proarams
Mr. Bloomenthal highlighted the four major program allocations in the capital budget:
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construction of the new Wilmington substation; upgrades to transformers and capacitor
banks; continuation of the grid modernization program; and rolling stock upgrades.
2024 Capital Budget — Capital Budget Overview (slide 12)
Mr. Bloomenthal provided an overview of the 2024 capital budget.
Forecast
Mr. Bloomenthal outlined the capital budget forecasts from 2024 to 2029, starting at $31m
in 2024 and reducing to $8.3m by 2029.
Budoetino Process and Adiustments
The capital budget is reviewed annually, ensuring the budget reflects current project plans
and anticipates adjustments as new needs and projects emerge.
Estimate Discrepancy
Chair Soni questioned the discrepancy between the 2023 estimate ($22.849m) and the
2023 forecast ($26m) for 2024. Mr. Bloomenthal clarified that $14m of the 2023 budget
was carried over, affecting the 2024 forecast.
Budaet Utilization
Mr. Phipps highlighted that the 2023 spending did not fully utilize the $22m budget, leading
to carry over into 2024. This figure represents accounting allocations rather than actual
cash expenditures.
Proiect Evaluation
Mr. Bloomenthal discussed the importance of evaluating capital projects based on their life
cycle rather than focusing solely on annual allocations. This approach aids in comprehensive
planning and forecasting.
Minor Correction
Chair Pacino noted a formatting inconsistency (decimals) in the 2024 forecast figures. Mr
Bloomenthal acknowledged this as a minor error to be corrected.
Substation 6 — Wilmington Substation (slide 13)
Mr. Bloomenthal presented the Substation 6 Project (Line 22 Page 67 Project 105).
Proiect Details
Mr. Bloomenthal noted that the project length is from 2024 to 2029, with a total cost of
$28.5m. In 2024, — $10m is allocated for milestone payments and transformer deposits.
Cost Inclusions
Mr. Bloomenthal confirmed that the estimate accounts for the entire life of the project,
including additional expenses incurred from system impact studies.
Procurement Status
Mr. Bloomenthal mentioned that the procurement process has begun, with contracts in
place for purchasing two new substation transformers from Virginia Transformer.
Grid Modernization — AMI/MDM (slide 14)
Mr. Bloomenthal presented the AMI MDM Program (Line 11 Page 59 Project 103) (Line 27
Page 77 Project 112)
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Proiect Details
Mr. Bloomenthal noted that the project length is from 2024 to 2029, with a total cost of
$18.2m. In 2024, —$1m is allocated for milestone payments.
Contractino Inouiry
Commissioner Coulter inquired about the status of contracting for the AMI mesh network
and the potential use of fiber optic communication.
Mr. Phipps responded that the bid specifications for the AMI mesh network are in the final
stages, aiming for release by Thanksgiving.
Fiber Optic Discussion
Commissioner Coulter highlighted the availability of fiber in Reading, questioning whether it
would be utilized or if an alternative communication strategy would be adopted.
Mr. Phipps emphasized the importance of choosing the right communication mechanism for
data transmission from meters to a central hub, with specifications kept open to consider all
available technologies.
Vice Chair Talbot noted RMLD's possession of more fiber resources than the Town.
Mr. Phipps emphasized the strategic importance of the communication system for meter
data collection across the utility's service area of 51 square miles.
Transformers and Capacitor Banks (slide 15)
Mr. Bloomenthal presented the ongoing Transformers and Capacitor Banks program (line 29
Page 81 Project 116).
Proiect Details
Mr. Bloomenthal noted that the program is aimed at upgrading transformers to a
satisfactory level.
Mr. Bloomenthal noted that the project length is from 2024 to 2029, with a total cost of
$16m. In 2024, —$2m will be allocated or bid.
The total cost includes $4 million carried forward due to prior years' supply chain
challenges, in addition to projections for future needs concerning transformers and capacity
banks.
Future Proiections and Needs
Mr. Bloomenthal highlighted the importance of future planning within the program,
particularly regarding the acquisition of transformers and capacity banks to meet projected
needs.
Mr. Bloomenthal presented the ongoing Rolling Stock Upgrades program (line 3 Page 25
Project 118).
Proiect Details
Mr. Bloomenthal noted that this is an ongoing annual program with a total cost of $6m.
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Mr. Bloomenthal highlighted the inclusion of a tree truck and chipper truck, as well as long-
term repair and maintenance needs for the utilities rolling stock.
Supply Chain Challenoes
Mr. Phipps discussed the impact of supply chain issues on delivery times. Mr. Phipps
highlighted the need for early budget inclusion to facilitate the bidding process for essential
vehicles.
Mr. Phipps emphasized that ordering in January 2024 could delay receipt until 2025 or 2026
due to extended delivery periods.
Mr. Phipps provided an overview of actual spending versus budgeted amounts, citing the
strategic need to budget for higher amounts to accommodate procurement and delivery
timelines.
Mr. Phipps noted that the projected actual cash capital spend is between $8m to $12m
annually, despite larger budgeted figures.
Electrification and EVs
Commissioner Coulter inquired about incorporating EVs in RMLD's fleet.
Mr. Phipps discussed RMLD's approach to integrating electric vehicles into the fleet,
considering practical applications and cost implications.
Mr. Phipps discussed the option of procuring electric trucks for the engineering team and
grid assets team.
Mr. Phipps highlighted the challenges and opportunities presented by the current market in
relation to purchasing electric trucks.
Security Uaarades (slide 171
Mr. Bloomenthal presented the ongoing Security Upgrades program (line 4 Page 37 Project
119).
Proiect Details
Mr. Bloomenthal noted that security upgrades are an ongoing annual program, with a total
cost of $BOOK. In 2024, — $325K designated for immediate security system enhancements
Proiect Obiectiyes
The project aims to bolster perimeter access controls and other security systems. RMLD is
working in collaboration with Burns and McDonnell to meet RMLD's new requirements in a
changing geopolitical landscape.
Physical Security
Mr. Phipps emphasized RMLD's focus on enhancing physical security measures in response
to evolving security threats.
Role of IT
Mr. Bloomenthal highlighted the instrumental role of the Director of IT in continuously
addressing security threats.
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Physical and Cyber Security
Commissioner Daskalakis raised a question regarding the delineation between physical
security and cybersecurity expenditures.
Mr. Phipps confirmed that the current budget discussion pertains to physical security
measures. There is a separate allocation for software, training, and procedures related to
cybersecurity.
Substation Security
Mr. Phipps highlighted RMLD's increased emphasis on securing substations, marking a shift
in priorities and budget allocations due to evolving security concerns and past challenges,
including delays caused by COVID-19.
Stricter Security Measures
Mr. Phipps emphasized that the need for stricter security measures has become more
pronounced due to challenges such as COVID-19, necessitating adjustments from the
original budget planned for these purposes.
Land Acquisition (slide 18)
Mr. Bloomenthal presented Land Acquisition (line 42 Page 103 Project TBD) and (line 43
Page 105 Project TBD).
Mr. Bloomenthal noted that Land Acquisition is a 2024 project with a total cost of $9 million
designated for acquiring land between Route 125 and Williams, and at Maple Meadows.
Mr. Bloomenthal emphasized that the acquisition of land is a significant component of the
CY 2024 capital budget.
Proiect Obiective
Mr. Phipps explained that the purpose of land acquisition is to support infrastructure
expansion necessary for managing increased load forecasts in RMLD's territory.
Other Capital Budget Items (slide 19)
Mr. Bloomenthal presented the other capital budget items (various lines, pages, projects)
Proiect Details
Mr. Bloomenthal noted that the other capital budget items are a 2024 project with a total
cost of up to $3m in various infrastructure maintenance and repair projects.
Planned Investments
Mr. Bloomenthal highlighted the project's planned investments: routine construction; pole
replacement; facilities upgrades; IT enhancements; service connections _Mr. Bloomenthal
noted that planned investments are aimed at maintaining and repairing the existing system
infrastructure.
Force Accounts Discussion
Commissioner Bits asked what constitutes a force account.
Mr. Phipps explained that a force account is a method of accounting for services provided on
state road projects. Mr. Phipps provided examples of specific projects near state roads and
involving bridge work.
Chair Pacino mentioned that upcoming projects include bridge work associated with the
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MBTA and state roads
Commissioner Coulter emphasized that 50% of the costs related to force account projects
can be reimbursed.
Mr. Phipps noted that despite being a smaller portion of the budget, force account expenses
are significant and must be carefully managed.
Budget Summary (slide 20)
Mr. Bloomenthal discussed the capital budget plans for the years 2024 to 2029 and RMLD's
strategic focus on significant infrastructure projects.
Mr. Bloomenthal highlighted the main cost drivers for 2024: construction of the new
Wilmington Substation; implementation of the AMI and MDM systems; the ongoing
Transformers program; and updates to the rolling stock.
Mr. Bloomenthal emphasized RMLD's commitment to reliability. These substantial
investments in key assets are crucial to maintaining and enhancing the system's reliability
for the future.
Johnson Woods Discussion
Chair Pacino raised an inquiry regarding the ongoing project in Johnson Woods, seeking
clarification on its nature and purpose. Mr. Phipps explained that the project is an upgrade
to the original underground network in Johnson Woods, aiming to add a loop for enhanced
reliability.
Mr. Small added that the development is currently served by a radial network; the goal is to
establish a second feed to circumvent potential cable failures.
Commissioner Coulter highlighted the significant growth in Johnson Woods, creating a need
for the secondary feed to support the increased demand profile. Chair Soni commented on
the area's expansion and ongoing construction.
Mr. Small clarified the dual purpose of the project: to diversify the load for reliability and to
accommodate growing demand that exceeds current infrastructure capacity.
Cost Allocation
Mr. Phipps emphasized RMLD's diligence in distinguishing between customer -paid upgrades
and those that serve wider community interests, ensuring that costs are appropriately
allocated.
RMLD BoC/CAB Budaet Allocation fPaae 1191
Chair Pacino raised an annual question regarding the annual budget amount allocated for
the RMLD BoC and CAB, noting a significant underutilization of funds.
Cost Allocation and Annual Spend
Chair Pacino highlighted that the total budget amount $30K annually, and the total spent in
2023 was —$14K. Chair Pacino emphasized the need to develop a plan to fully utilize these
funds.
Mr. Bloomenthal encouraged board members, especially new ones, to participate in NEPPA
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events for professional development and networking within the industry.
Mr. Small mentioned the budget's provision for consultant fees when necessary.
Mr. Phipps clarified that the $30K budget is split evenly between the CAB and BOC, with
each allocated $15K. Ms. Morse confirmed that a portion of her labor costs is also allocated
within this budget.
Chair Paino suggested exploring possibilities for reallocating unused funds, including
incorporating more of Ms. Morse's labor costs.
CY2024 Capital Budget Vote
Mr. Hooper made a motion, seconded by Mr. Kelley, that the Citizens' Advisory Board
recommend to the RMLD Board of Commissioners the Calendar Year 2024 Capital Budget as
presented. Motion Carried: 5:0:0 (5 in favor) Roll Call Vote: Chair Soni, Aye; Vice Chair
Welter, Aye; Mr. Hooper, Aye; Mr. Kelley, Aye; Mr. Small, Aye.
Commissioner Daskalakis made a motion, seconded by Vice Chair Talbot, that the Board of
Commissioners, on the recommendation of the Citizens' Advisory Board, approve the
Calendar Year 2024 Capital Budget, as presented. Motion Carried: 5:0:0 (5 in favor) Roll
Call Vote: Chair Pacino, Aye; Vice Chair Talbot Aye; Commissioner Coulter, Aye;
Commissioner Bita, Aye; Commissioner Daskalakis, Aye.
Scheduling
The next BoC and CAB meetings will be held on November 15, 2023.
George Hooper's — Presentation of Meter Lama
The BoC and CAB acknowledged that it was Mr. Hooper's last meeting. Mr. Hooper served as
the CAB representative for —15 years.
The BoC and CAB thanked Mr. Hooper for his service. Chair Pacino expressed his
appreciation for Mr. Hooper's valuable input.
Adiournment — Citizens' Advisory Board
Mr. Hooper made a motion, seconded by Mr. Kelley, that the RMLD Citizens' Advisory Board
adjourn regular session. Motion Carried: 4:0:1 (4 in favor, 1 absent) Roll Call Vote: Chair
Soni, Aye; Mr. Hooper, Aye; Mr. Kelley, Aye; Mr. Small, Aye. (Vice Chair Welter was absent
from the meeting.)
The CAB meeting was adjourned at 8:45 PM.
Chair Soni remained in attendance for the rest of the meeting, as the CAB representative.
Policy Review
Agenda item 11 "Policy Review" was tabled to a future meeting.
RMLD Procurement Reauests for Board Aooroval
Materials: IFP 2023-01 Board Letter (Board Packet, attachment 7)
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IFP 2023-01 MDMS and Customer Portal IFP
Mr. Phipps presented procurement requests for approval to the BoC.
Proiect Details
Mr. Phipps highlighted the MDMS customer portal and its significance for RMLD's data
management capabilities. The MDM system will enhance meter data analysis, billing
accuracy, and system integration.
The project aims to enhance data management and billing processes by integrating meter
systems and internal platforms.
Proposal Selection Process
Mr. Phipps discussed the proposal selection process, noting that six companies responded to
the (IFP) Invitation for Proposal. RMLD conducted a thorough review based on technical
merit.
Contract Cost and Details
The estimated cost for PCS's service is $470K; including $70K for the first year's
maintenance fee.
Mr. Phipps clarified the contract allows for Flexibility in implementing the customer portal,
dependent on future evaluations.
Mr. Phipps clarified that the contract is for a three-year term with annual fees of
approximately $67K for subsequent years.
Mr. Phipps confirmed that all upgrades are included during the warranty period.
Chair Soni inquired about the transparency of potentially not proceeding with the second
phase. Mr. Phipps confirmed was addressed in discussions with PCS.
Commissioner Daskalakis made a motion, seconded by Commissioner Bita, that IFP
2023-01 for a Meter Data Management System (MDMS) and Customer Portal be awarded to:
Professional Computer Systems, LLC (PCS) for an amount not to exceed $500,000, pursuant
to M.G.L. c. 164 § 56D, on the recommendation of the General Manager. Motion Carried:
5:0:0 (5 in favor, 0 against) Roll Call Vote: Chair Pacino, Aye; Vice Chair Talbot, Aye;
Commissioner Coulter, Aye; Commissioner Bita, Aye; Commissioner Daskalakis, Aye.
Adjournment — Board of Commissioners
The Board of Commissioners' meeting adjourned at 9:00 PM.
Vice Chair Talbot made a motion, seconded by Commissioner Bita, that the Board of
Commissioners adjourn regular session. Motion Carried: 5:0:0 (5 in favor, 0 against) Roll
Call Vote: Chair Pacino, Aye; Vice Chair Talbot Aye; Commissioner Coulter, Aye;
Commissioner Bita, Aye; Commissioner Daskalakis, Aye.
A true copy of the RMLD Board of Commissioners minutes.
As approved by a majority the Commission on February 28, 2024.
�LlGld S V�GNO
pF111p B>x ei—
Philip B. Pacino, Secretary Pro Tem
RMLD Board of Commissioners
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