HomeMy WebLinkAbout2002-03-27 RMLD Board of Commissioners MinutesStart Time of Regular Session:
End Time of Regular Session:
Reading Municipal Light Board
Regular Session
230 Ash Street, Reading, MA 01867
March 27, 2002
7:34 p.m.
8:20 p.m.
CUERK
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Attendees
Commissioners: Messrs. Ames, Halloran, and Hughes
RMLD Staff: Mr. Cameron, Acting General Manager, Messrs. Blomley and Seldon
Ms. Cavagnaro -
CAB Members: Messrs. Lessard, Corbett, Stevenin and Carakatsane
Legal Counsel: Mr. Wayne Frigard, Rubin and Rudman
Guests: Mr. Robert Soli, RMLD Board of Commissioner Candidate
Ms. Blomley, RMLD Staff
Messrs. Kazanjian and Butler
Ms. Mary Murray, Reading Chronicle and Ms. Nadine Wandzilak, Reading Advocate
This meeting is being video taped, as a public record, for distribution to the community television stations in Reading
North Reading, Wilmington and Lynnfield. Tapes of this meeting can be purchased from RCTV ($2 tape).
Mr. Ames, Chairman of the Board, called the meeting to order at 7:34 p.m.
Minutes of March 21, 2002
Mr. Hughes made a motion seconded by Mr. Halloran that the minutes of March 21, 2002 be accepted as presented.
Motion carried 3:0:0.
Citizen's Advisory Board, Selectmen Liaison and Customer Comments
Mr. Cameron informed the RMLD Board of Commissioners that the Citizen's Advisory Board has a new member to
represent Lynnfield. Mr. Arthur Carakatsane introduced himself as Mr. Gehret's replacement to the CAB representing
Lynnfield.
Mr. Soli, candidate for the Reading Municipal Light Board of Commissioners, made a presentation utilizing his own
graph and the APPA report on stats of revenue per kwh. His findings included ratios of power used by RMLD
residential versus commercial customers, noting that fifty-percent of power is consumed by the Wilmington industrial
customers. Mr. Soli noted the commercial rate payers have a much lower rate than residential customers. His analysis
also indicated areas in need of improvement whereby RMLD and its rate payers could benefit, both financially and
publicly. Mr. Soli also pointed out current processes within the RMLD which he believes need clarification.
Brief discussion ensued.
Mr. Ames thanked Mr. Soli for sharing his information. Mr. Ames stated the APPA reports may not be totally accurate
and in the future recommends further investigation of APPA prior to RMLD making any conclusions.
NU Select Power Supply Agreement
The CAB members met with Messrs. Cameron, Seldon and Frigard to discuss the NU Select Power Supply Agreement.
Mr. Lessard, Chairman of the CAB, certified the CAB recommends RMLD enter into this Power Supply Agreement.
Mr. Cameron explained the history behind this potential agreement. Mr. Cameron stated Select Energy, Inc.,
approached RMLD with this offer due to the win-win situation for both companies. He stated in addition to RMLD
having a. fixed lower rateuntil 2005, it provides-Select-Energy Inc. with lower risk. The Energy Services Department
negotiated with Select Energy, Inc., for a firm fixed rate of $40 per MWh through the year 2005. The existing Power
Supply Contract is variable has an average of $42.50 per MWh, the savings with the new contract would be the $2.4 -
$2.5 million dollars within a 43 month period. They only downside of this agreement is if the fuel prices drop
dramatically.
Regular Session Minutes Page Two
March 27, 2002
NU Select Power Supply Agreement (Continued)
Mr. Frigard, of Rubin and Rudman, explained the legal benefits of this contract stating that it provides RMLD financial
stabilities as well as a parent guarantee since Select is a subsidiary of Northeast Utilities. Mr. Frigard also stated Select
Energy, Inc. has a good bond rating.
Extensive discussion ensued followed by a question and answer session.
Mr. Hughes made a motion, seconded by Mr. Halloran to move that the Reading Municipal Light Board authorize the
Reading Municipal Light Department to enter into Power Supply Agreements with Select Energy, Inc. for a duration
not beyond October 31, 2005 for the sale of 30 MW of dispatchable power, that is, a swapback, and for the purchase of
30 MW of Firm Entitlement Strips at a fixed cost not to exceed $40 per MWh, and that the Acting General Manager be
authorized to finalize the negotiations and execute the Agreements on the recommendation of the Citizen's Advisory
Board.
Motion carried 3:0:0.
Mr. Ames noted although Mr. Pacino was not present at the meeting, he was informed of this new Power Supply
contract and is in favor of the Department proceeding forward with this contract.
Mr. Hughes complimented the Energy Services Department, Messrs. Cameron, Seldon and Ms. Parenteau for their
diligence with this contract and stated it proves RMLD is still progressing, despite the current situation.
In addition to extending his thanks to Mr. Seldon, Mses. Parenteau and McHugh, Mr. Cameron thanked Mr. Frigard,
noting he was very instrumental in assisting with the legalities of this contact. He also thanked the CAB for their quick
action and decision.
The next meeting was scheduled for Monday, April 1, 2002 at 7:45 p.m.
Motion to Adiourn
At 8:20 p.m. Mr. Hughes made a motion seconded by Mr. Halloran to adjourn the Regular Session.
Motion carried by a show of hands 3:0:0.
A true copy of the RMLD Board of Commissioners minutes as
approved by a majority of the Commission.
Mr. William J. ughes, r.
Secretary pro tern
RMLD Board of Commissioners
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