HomeMy WebLinkAbout2006-01-18 RMLD Board of Commissioners MinutesReading Municipal Light Board of Commissioners
Regular Session
230 Ash Street
Reading, MA 01867
January 18, 2006
Start Time of Regular Session: 7:34 p.m.
End Time of Regular Session: 10:22 P.M.
Attendees:
Commissioners: Herlihy, Pacino, Soli, Kearns, and Hahn
CAB: Lessard, Carakatsane, Norton, O'Neill, and Vale
RMLD Staff: Messrs. Cameron and Seldon
Mses. Parenteau and O'Leary
Guest: Attorney Ken Barna, Rubin and Rudman
Chairman Herlihy called the meeting to order at 7:34 p.m.
He read the following statement into the record: "This meeting of the Reading Municipal Light
Department (RMLD) Board of Commissioners January 18, 2006 is being broadcast at the RMLD's office
at 230 Ash Street, Reading, MA. Live broadcasts are available only in Reading due to technology
constraints. This meeting is being video taped for distribution to the community television stations in
North Reading, Wilmington and Lynnfield."
Minutes
December 6, 2005
Mr. Soli made a motion seconded by Mr. Hahn to approve the Regular Session meeting minutes of
December 6, 2005 as presented.
Motion carried 4:0:1. Ms. Kearns abstained noting that she did not attend the December 6, 2005
meeting.
Report of the Chairman of the Board
T-Shirt Reception at RMLD, January 5, 2006
Chairman Herlihy stated that the T-Shirt Reception was well attended by parents and children. Chairman
Herlihy said that Secretary Kearns assisted as well as Citizens' Advisory Board members.
Chairman Herlihy added the RMLD had its annual Blood Drive the last week of December.
Cost-of-Service/ School Rate Recommendations
Chairman Herlihy stated that the reason the Cost of Service Study was put on hold was due to the
Locational Installed Capacity (LICAP) issue. Since LICAP is being delayed, Chairman Herlihy stated that
the rate the schools are classified under as well as other rates needed to be addressed. Mr. Herlihy stated
that schools are currently classified under the Commercial Rate.
Mr. Herlihy made a motion seconded by Ms. Kearns that the General Manager of the RMLD presents an
analysis of the RMLD customer rate classes and report back by February 15, 2006 with his
recommendations as to whether or not additional rates classes or another Customer Cost-of-Service study is
needed.
Motion carried 5:0:0.
Regular Session Meeting Minutes 2
January 18, 2006
Selectmen Liaison, Citizens' Advisory Board and Customer Comments
Chairman Herlihy asked those in attendance if they had any comments.
There were no comments from those in attendance.
Presentation
Executive Vice President Michael Vigeant of the Center for Research & Public Policy (CRPP)
presented the results of the RMLD customer survey.
Chairman Herlihy stated that the RMLD has not had a customer survey in over four years. Chairman
Herlihy introduced, Mr. Vigeant of Center for Research & Public Policy, who had recently conducted a
customer survey for RMLD.
Mr. Vigeant began his presentation by giving a brief overview of the Center for Research & Public Policy
(CRPP) who conducted the survey. Mr. Vigeant stated that CRPP has conducted many surveys and focus
groups in the utility arena. Mr. Vigeant said that based on their experience in conducting surveys in the
utility arena, they are attuned to what RMLD's customers may need and the types of questions to ask them.
Mr. Vigeant commented that his company gave RMLD a discounted rate because RMLD used the survey
differently than Municipal Electric Association of Massachusetts (MEAM). RMLD, however, had some
customized questions.
Mr. Vigeant stated that he worked with some of the RMLD Board members, Mr. Cameron and Ms.
Gottwald on customized areas the RMLD requested to be addressed in the survey.
Mr. Vigeant pointed out that 400 telephone interviews were conducted with an equal number of interviews
for each town that RMLD services. Mr. Vigeant explained that they are aware that some of RMLD's towns
represent a higher customer base. He said results could be weighed, but that based on results, it was not
needed.
Mr. Vigeant explained CRPP's methodology used in this customer survey.
Mr. Vale inquired when the CRPP employee calls a customer do they introduce themselves, as calling on
behalf of the Reading Municipal Light Department and does that skew the survey results?
.Mr. Vigeant answered that in his experience, customers are brutally honest. Mr. Vigeant explained that the
reverse side is the customer could present any negative feedback up front because their employee prefaces
each call by stating that they are calling on behalf of the RMLD.
Mr. Vigeant then went through the Survey Results. A copy of Mr. Vigeanfs slides is attached to the
minutes.
Ms. ONeill asked, if the survey information relative to ownership could be segregated by town?
Mr. Vigeant replied this could be done.
Ms. Kearns said that since some of the survey questions were used for other municipals, were there any
questions in this survey skewed or off the chart either way for the RMLD?
Mr. Vigeant replied that the questions did not skew any of the survey results. He pointed out that RMLD's
customers ranked higher than other municipals in knowing it was a municipal electric company. The
Customer Service and Field Representatives came in at a higher rating.
Ms. ONeill pointed out that close to 50% to 60% of the customers surveyed were willing to pay for green
power or renewable energy, although the customers were residential.
Regular Session Meeting Minutes
January 18, 2006
Presentation
Executive Vice President Michael Vigeant of the Center for Research & Public Policy (CRPP)
presented the results of the RMLD customer survey.
Mr. Hahn said that he was surprised how positive the survey results were for deregulation.
Chairman Herlihy thanked Mr. Vigeant for an informative presentation. Chairman Herlihy said that he
would like to see this information be used as a tool for improvement.
Ms. Kearns said that she would like to see the survey results be broken down by town. Ms. Kearns added if
any of the RMLD Board or CAB members to tell her if they would like some of the questions broken out
by town.
General Manager's Report
Financial Report, November 30, 2005, RMLD Budget Expense Variance Summary Analysis ending
November 30, 2005, RMLD Board Expense Variance Analysis, November 30, 2005
Mr. Fournier went over the Profit and Loss Statement. Mr. Fournier pointed out that Net Income is $2.8
million, and that RMLD is approximately $600,000 under budget.
Mr. Fournier addressed Fuel Revenue and Costs, Base Revenues and Kilowatt Hour Sales. Mr. Fournier
pointed out that Base Costs are over budget by $400,000. Mr. Fournier said that Operating and
Maintenance Expenses are coming in under budget due to expenditures not being spent to date. Mr.
Fournier pointed out the Pension Trust Contribution has not been made to date. Mr. Fournier stated that he
would get his responses this Friday from the three firms interested in performing the Actuarial Study for the
RMLD. Mr. Fournier said the potential firms include one the RMLD has used, one the Town of Reading is
currently using and one of larger firm well known throughout the country.
Mr. Fournier then addressed the RMLD Budget Expense Variance Summary. Mr. Fournier stated that it is
in line with the Profit and Loss Statement. Mr. Fournier pointed out that all five divisions are coming in
under budget. Mr. Fournier added the expenditures for the first five months are $30 million whereas the
RMLD budgeted for $26 million. Mr. Fournier pointed out the difference is coming in from the Fuel side.
Mr. Fournier said the RMLD Board budget is under budget for the first five months.
Mr. Soli stated that the Fuel in general is becoming a big part of the budget. He suggested putting in a line
item for Fuel Cost and Fuel Recovery.
Mr. Hahn had a question on Receivables because they are up significantly.
Mr. Fournier explained this is attributable to the Commercial billing and the seventeen-day discount period
for the months of November and December.
Fiscal Year 2007 Capital and Operating Budgets
Mr. Cameron stated that the RMLD will be starting the fiscal year 2007 budget process and it will get busy
in April. Mr. Cameron wanted both the RMLD Board and the CAB to be aware of this.
Power Supply Update
Ms. Parenteau described the energy costs for November and what RMLD was doing in response to these
costs.
Ms. Parenteau stated that on December 20, 2005, Calpine one of RMLD's energy supplier filed for Chapter
11 bankruptcy in New York. As a result RMLD exercised its rights to terminate its contract with Calpine.
Regular Session Meeting Minutes 4
January 18, 2006
General Manager's Report
American Public Power Association (APPA) Engineering & Operations Technical Conference
This will take place April 9-12 in Sacramento, California.
Mr. Cameron introduced Pete Dion the new Engineering and Operations Manager who started with the
RMLD in mid December.
Mr. Dion stated that it is a pleasure to be here that the RMLD employees have been very receptive. Mr.
Dion gave his educational background and his experience at NSTAR.
Mr. Cameron said he wanted to attend the. American Public Power Association Engineering & Operations
Technical Conference with Mr. Dion.
Ms. Kearns made a motion seconded by Mr. Pacino that the RMLD Board of Commissioners authorize the
General Manager to travel to the APPA Engineering & Operations Technical Conference.
Motion carried 5:0:0.
Board Discussion
Rate Comparisons, December 2005
Mr. Cameron then gave the Board rate comparisons among public utilities in the contiguous area.
Chairman Herlihy inquired if the small Commercial NSTAR rate is below the RMLD?
Mr. Cameron replied yes and this is due to the Fuel Charge fluctuation.
Chairman Herlihy inquired the schools are in that rate?
Mr. Cameron replied "yes".
Mr. Hahn asked about Middleton's rate structure?
Mr. Cameron replied Middleton has several suppliers and he is not that familiar with their power suppliers.
Mr. Hahn asked do you think it is power supply as opposed to distribution rates?
Mr. Cameron replied yes.
Next Meeting Dates
Wednesday, February 15, 2006
RMLD Board of Commissioners Subcommittee Meetings
Chairman Herlihy would like a Green Power Subcommittee meeting set up based on the customer survey results.
Other Subcommittees to be set up are Community Relations and General Manager.
RMLD Board Rotation at Citizens' Advisory Board (CAB) Meetings
Chairman Herlihy said that once the CAB selects a date then the RMLD Board can submit its schedule.
Mr. Pacino mentioned in the NEPPA news that Roger Cotte is retiring from RW Beck. Mr. Pacino pointed out that
Mr. Cotte has done engineering for many municipals as well as for the RMLD: Mr. Pacino would like Mr. Cotte to
receive a congratulatory message from the RMLD Board on his retirement.
Board Discussion
Chairman Herlihy stated that Paul Carson, Chief Engineer at the RMLD retired after many years of service.
Regular Session Meeting Minutes
January 18, 2006
5
Board Discussion
Mr. Cameron replied that Mr. Carson had over thirty years of service to the RMLD. Mr. Cameron said that Mr.
Carson's talents were instrumental in building the RMLD system. Mr. Carson was instrumental in system
restoration during emergencies.
Executive Session
At 8:55 p.m. Ms. Kearns made a motion seconded by Mr. Pacino that the Board go into Executive Session, to
discuss strategy with respect to litigation and to return to Regular Session for the sole purpose of adjournment.
Motion carried 5:0:0.
Chairman Herlihy called for a poll of the vote:
Mr. Hahn, Aye ; Mr. Soli, Aye; Mr. Herlihy, Aye; Ms. Kearns, Aye; and Mr. Pacino, Aye.
Motion to Adjourn
At 10:22 p.m. Mr. Pacino made a motion seconded by Ms. Kearns to adjourn the Regular Session.
Motion carried 4:0:0. Vice Chair Soli was not present for the vote.
A true copy of the RMLD Board of Commissioners minutes as
approved by a majority of the Commission.
Ellen C. Kearns, Secretary
RMLD Board of Commissioners
Thankyou for the opportunity to present
2005
Customer Satisfaction Studly,
Reading Munticip al Light Department
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