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HomeMy WebLinkAbout2006-10-04 RMLD Board of Commissioners MinutesReading Municipal Light Board of Commissioners Regular Session 230 Ash Street Reading, MA 01867 October 4, 2006 Start Time of Regular Session: 8:03 p.m. Start Time of Executive Session: 8:07 p.m. End Time of Executive Session: 8:45 p.m. End Time of Regular Session: 8:50 p.m. Attendees: Commissioners: Messrs. Pacino and Hahn, Mses. Kearns and O'Neill RMLD Staff: Messrs. Cameron and Seldon Ms. Parenteau CAB: Mr. Carakatsane Guest: Mr. Bill Bottiggi, General Manager, Braintree Electric Light Department Chairman Pacino called the meeting to order at 8:03 p.m. Proposed Watson Unit Power Contract with Braintree Electric Light Department Mr. Cameron stated that the RMLD Board meeting is being held in order to reconsider the motion adopted at the RMLD Board in Regular Session on September 20, concerning the Watson Unit Power Contract. Mr. Cameron explained that two items contained in the motion need to be changed in order to execute the contract. Mr. Cameron introduced Bill Bottiggi, General Manager, Braintree Electric Light Department, who is successfully managing the Watson Unit project. Mr. Cameron stated that Mr. Bottiggi would explain why the proposed changes in the motion need to be made. Mr. Cameron stated that Attorney John Coyle who is representing the RMLD on this matter would be available by phone, if needed. Mr. Cameron said that the nature of Mr. Bottiggi's discussion will revolve around the Engineering, Procurement, and Construction (EPC) contract and the turbine manufacturer's service agreement (warranty program). Executive Session (General Manager's Conference Room) At 8:07 p.m. Mr. Hahn made a motion seconded by Ms. Kearns that the Board go into Executive Session based on Massachusetts General Laws, Chapter 164, Section 47D for the purpose of discussing the Reading Municipal Light Department and Braintree Electric Light Department contract and return to Regular Session. Motion carried 4:0:0. Chairman Pacino called for a poll of the vote: Ms. O'Neill, Aye; Ms. Kearns, Aye; Mr. Pacino, Aye; and Mr. Hahn, Aye. The RMLD Board reentered Regular Session at 8:45 p.m. Proposed Watson Unit Power Contract with Braintree Electric Light Department A motion was made by Mr. Hahn, seconded by Ms. Kearns, to reconsider the motion made at the September 20, 2006 meeting, which reads: "Mr. Soli made a motion seconded by Mr. Hahn that the RMLD Board of Commissioners authorize the General Manager to execute the Unit Power Contract between Braintree Electric Light Department (BELD) and the Reading Municipal Light Department (RMLD) to purchase a unit entitlement, not to exceed ten percent (10%), in the Thomas A. Watson Power Plant contingent upon a thorough and favorable review of the following: Engineering, Procurement, and Construction (EPC) contract, the turbine manufacturer's service agreement (warranty program), and the finalization of the appendices. The General Manager shall report back to the RMLD Board of Commissioners on the results of the review of the forgoing items in due course." Motion carried 5:0:0. Regular Session Minutes 2 October 4, 2006 Proposed Watson Unit Power Contract with Braintree Electric Light Department Mr. Hahn made a motion seconded by Ms. Kearns that the RMLD Board of Commissioners authorize the General Manager to execute the Unit Power Contract between Braintree Electric Light Department (BELD) and the Reading Municipal Light Department (RMLD) to purchase a unit entitlement, not to exceed ten percent (10%), in the Thomas A. Watson Power Plant upon the finalization of the appendices. Motion carried 4:0:0. The sense of the Board was that the General Manager will report back to the Board with regular updates on the Watson Unit Power Contract. Mr. Hahn said that the 11.6 megawatts obtained by the BELD contract is a small piece of the RMLD's power supply needs. Mr. Hahn would like the Department to provide to the Board a five-year capacity and energy plan. Mr. Hahn stated that he would like to have the Department provide information about the power supply resources it will use to mitigate the increases due the loss of the Calpine contract. Mr. Hahn pointed out that a Baltimore utility had rate increases of 70% due to power supply issues. Mr. Hahn would like to address the future rate increases that the RMLD ratepayers will be experiencing before the fact. Mr. Hahn would like more information on the MMWEC and Taunton projects as possible sources of power supply. Mr. Cameron said that the power supply issues will be brought to the Rate/Power Supply Subcommittee then to the full Board. Motion to Adjourn At 8:50 p.m. Mr. Hahn made a motion seconded by Ms. Kearns to adjourn the Regular Session. Motion carried 4:0:0. A true copy of the RMLD Board of Commissioners minutes as approved by a majority of the Commission. Mary Ellen O'Neill, Secretary Pro Tem RMLD Board of Commissioners