HomeMy WebLinkAbout2010-09-29 RMLD Board of Commissioners Minutes Reading Municipal Light Board of Commissioners
Regular Session
230 Ash Street
Reading,MA 01867 tK
September 29,2010
Start Time of Regular Session: 7:30 p.m.
End Time of Regular Session: 9:45 p.m. 2 8 P 5: 2 0
Attendees:
Commissioners:
Mary Ellen O'Neill,Chairman Richard Rahn,Vice Chair
Philip Pacino,Secretary Robert Soli,Commissioner
Gina Snyder,Commissioner
Staff.
Vinnie Cameron,General Manager
Beth Ellen Antonio,Human Resources Manager
el
Jared Carpenter,Energy Efficiency Engineer Robert Fournier,Accounting/Business Manager
Patricia Mellino,Operational Assistant Jane Parenteau,Energy Services Manager
Kevin Sullivan,Engineering and Operations Manager
Citizens'Advisory Board:
George Hooper,CAB Member
Guest:
Frank Biron,President;Melanson Heath&Company,PC
Karen Snow,Supervisor;Melanson Heath&Company,PC
Chairman O'Neill stated that this meeting of the Reading Municipal Light Department (RMLD) Board of
Commissioners September 29,2010,was being called to order and was being broadcast live at the RMLD's office at
230 Ash Street, Reading, MA. Live broadcasts are available only in Reading only due to technology constraints.
This meeting is being video taped for distribution to the community television stations in North Reading,
Wilmington and Lynnfield.
Introductions
Chairman O'Neill welcomed and introduced Mr. George Hooper a member of the Citizens'Advisory Board(CAB).
Chairman O'Neill asked if there was anything going on with the CAB. Mr. Hooper stated that there are a couple of
vacancies due to the resignations of Mr. Quincy Vale and Ms. Tracy Sopchak and believes that the General Manager
may have received a letter of appointment from the Town Manager,Mr.Michael Caira.
Mr. Cameron replied that he had received a letter from the Town Manager and that Thomas 011ila who lives in
Wilmington,had been appointed.
Mr. Hooper stated that the CAB's next meeting is on Tuesday, October 5, at the RMLD at 6:30 p.m. and that Mr.
011ila would be present that night. Chairman O'Neill asked the Board that if anyone was interested in attending to
get back to her.
Opening Remarks/Approval of Meeting Agenda
2�
Chairman O'Neill asked the Board if there were suggested changes to the agenda,there were none.
Presentation of Fiscal Year 2010 Audit(Attachment 1)
Chairman ONeill introduced Mr. Frank Biron and Ms. Karen Snow of Melanson Heath & Company, PC who
presented the fiscal year 2010 audit.
Mr. Biron introduced himself as the President of Melanson Heath & Company, PC and Ms. Karen Snow, as the
Supervisor who performed most of the audit at the RMLD.
Regular Session Meeting Minutes 2
September 29,2010
Presentation of Fiscal Year 2010 Audit(Attachment 1)
Mr. Biron stated that the Department should be commended for doing a good job at closing its books in a timely
manner, getting things reconciled and ready for the audit and then getting the audit completed and Financial ''
Statements issued before the end of September. Mr. Biron said that there are not too many municipalities out there
that can get things done that quickly and the Department does a very good job at reconciling its books and takes the
audit seriously. Any recommendations that are made the Department does its best to implement.
Mr.Biron reported on the Financial Statement highlights of the Department.
Mr.Biron further reported on Retirement Trust Fund.
Chairman O'Neill thanked Mr. Biron for his excellent presentation and thanked Ms. Snow as well for a thorough
presentation made at the Audit Committee meeting which was very helpful for several members of the Town's
Finance Committee who attended.
Mr. Cameron echoed those comments and stated that Melanson Heath & Company,PC is a very professional firm
and they do a very thorough job. Mr. Cameron also noted that the RMLD did not receive a management letter again
this year and that has a lot to do with his staff.
Chairman O'Neill said that she appreciates all that the staff did to get this all together and that they had such good
input.
Audit Committee Secretary—Mr.Pacino
Mr.Pacino reported that the Town Audit Committee and the Board's Audit Committee met in joint session with the
Auditors prior to tonight's meeting and reviewed the details,highlights,and other items. In addition some questions
were asked and answered. Mr.Pacino said that both Committees recommended that the Board accept the audit and
that the vote of the Town Audit Committee was 5:0 and the vote of the Board's Audit Committee was 2:0.
Chairman O'Neill asked if there were any questions,there were none.
Mr. Pacino made a motion seconded by Mr. Hahn move that the RMLD Board accept the Financial Statements as
presented by Melanson Heath&Company for the fiscal year ended June 30,2010.
Motion carried 5:0:0.
Quarterly Conservation Program Update—Mr.Carpenter(Attachment 2)
Mr. Carpenter pointed out to the Board the new LED lights that were installed in the conference room ceiling.
Mr. Pacino asked if the lights were energy efficient. Mr. Carpenter replied yes and that all four of these lights
combined would draw a hair more power than one of the other light fixtures alone and that these lights do not
contain any mercury. Mr. Carpenter explained that he had randomly chosen the 4000-color temperature for lighting.
Chairman O'Neill asked if that referred to the power.
Mr. Carpenter explained that it was how we see the color of light coming out and that one could choose from for
example; cool white,warm blue etc.and that it was a matter of preference.
Mr. Carpenter presented the Quarterly Conservation Program update starting with Existing Programs.
Approval of July 28,2010 Board Minutes
Mr. Pacino made a motion seconded by Mr. Hahn to approve the Regular Session meeting minutes of July 28,2010
with the changes presented. An amendment was made to the original motion by Mr. Soli.
Mr. Soli was concerned that his remarks and handout at the June 30,2010 meeting were not properly recorded in the
minutes of the meeting.
Mr. Soli made a motion to have his comments included in the original June 30,2010 minutes.
Motion failed 2:3:0. Mr.Hahn,Mr.Pacino and Ms.Snyder voted against this motion.
Regular Session Meeting Minutes 3
September 29,2010
Approval of July 28,2010 Board Minutes
Mr. Soli was instructed that he could attach an addendum to the June 30,2010 to clarify his remarks.
The Board then voted on the main motion.
Motion carried 4:1:0. Mr.Soli voted against this motion.
Approval of August 25,2010 Board Minutes
Mr. Pacino made a motion seconded by Mr. Hahn to approve the Regular Session meeting minutes of August 25,
2010 with the changes presented. Chairman O'Neill said on page one under the topic Report from RMLD Board
Committees insert in bold text "Audit Committee — Mr. Soli", on page two under Preliminary Draft Financial
Report insert, "Chairman ONeill expressed her dismay that the budget variances for fiscal year end June 30, 2010
were not available for the Board review and asked that this be put on the agenda for the next Budget Committee
meeting".
Motion carried 5:0:0.
Report of Board Committees
Power&Rate Committee—Vice Chair Hahn
Mr. Hahn gave a report of the Power and Rate Committee. The first item at the meeting was an update by staff of
the recent activities related to obtaining renewable power supply.
The second item the Committee discussed was a submittal the RMLD made to the Department of Energy Resources
outlining the Green House Gas Emissions related to the RMLD's power supply portfolio.
The last item the committee took up was Commissioner Soli's analysis of the recently performed Cost of Service
Study.
Mr. Hahn reported that there were three deliverables requested from the General Manager and staff. The first was a
more specific description of the individual components of the energy portion of the RMLD's power supply portfolio
for the next budget. The second was the General Manager would discuss the details of the next Cost of Service
Study six months prior to bringing it to the committee. The last item requested was a metering plan for next year's
capital budget that would increase the RMLD's energy usage data.
General Manager Committee—Chairman O'Neill
Chairman O'Neill reported that the General Manager Committee met on September 13 and had reviewed a few
minor changes to the evaluation tool and stated that the Board would need to vote to approve this for the new year.
Mr. Hahn made a motion seconded by Ms. Snyder that the Reading Light Municipal Board of Commissioners to
accept the General Manager's Performance Review Plan for the fiscal year July 2010 through June 2011 as was
approved by the General Manager Committee.
Motion carried 5:0:0.
General Manager's Report—Mr.Cameron
Indemnification Agreement
Mr. Cameron stated that the Indemnification Agreements are on the table and ready for signature. Mr. Cameron
gave a brief explanation of the signing process.
Chairman O'Neill asked if there were any questions.
Mr. Hahn stated that he unfortunately did not get around to asking the rest of his questions and was not aware that
the Board would be asked to sign the agreements at the meeting. Mr. Hahn said that he still had some questions
concerning the document and does not know if he could sign this document without the answers. Mr. Hahn
admitted that he was at fault for not asking the questions by now, but it's either to wait or amend the documents
later.
Chairman O'Neill asked Mr. Hahn that he get his questions to Mr. Cameron and that the Board be ready to sign the
Indemnification Agreements at the next meeting.
Regular Session Meeting Minutes 4
September 29,2010
Financial Report,August 2010—Mr.Fournier(Attachment 3)
Mr. Fournier reported on the Financial Report for August 2010. Mr. Fournier stated that August showed a negative
change in net assets and that Mr. Sullivan will talk about the Gaw Substation soil remediation.
Mr. Fournier stated that in the month of August there was a net loss or negative change in net assets of about
$225,000 bringing the year to date net loss at a little over$500,000.
Mr. Fournier stated that the year to date base revenues were over budget by a little more than$500,000 or 7.5%and
actual base revenues came in at$8 million compared to the budgeted amount of$7.4 million.
Mr. Fournier reported that on the Expense side the actuals pretty much followed the budgeted amounts stating that
the year to date purchase power base expense was$41,000 or less than I%under budget and actual purchased power
base costs and budget were at$5 million.
Mr. Fournier reported that the Operating Fund balance was at $7.6 million, Capital Funds at $4.7 million, Rate
Stabilization Fund at$5.3 million,Deferred Fuel Fund at$666,000, and Energy Conservation balance at$354,000.
Mr.Fournier stated that cumulatively,all five divisions were under budget for the first two months by about$28,000
or less than 1%.
Power Supply Report,August 2010—Ms.Parenteau(Attachment 4)
Ms. Parenteau reported on the Power Supply Report for August 2010. Ms. Parenteau stated that RMLD's load for
August was 71.6 million kWhs,which was a slight decrease of about 1.7%when compared to August 2009.
Ms. Parenteau said that the RMLD's energy cost came in at $4.2 million, which was equivalent to approximately
5.8¢ kWh. Ms. Parenteau reported that the fuel charge adjustment for August was set at 5.4¢ kWh and the total
sales for the month totaled 67.7 million kWhs as a result of that the RMLD under collected by approximately
$543,000 and that resulted in the deferred fuel cash reserve of approximately$666,000. -
Ms.Parenteau stated that the fuel charge for September was increased to 5.9¢and the RMLD is going to set the fuel
charge adjustment for October at 6.4¢. Ms. Parenteau reported that currently the RMLD does not anticipate
changing the fuel charge once it reaches the October value based on the preliminary forecast.
Ms. Parenteau said that the RMLD purchased 9.43% of the energy requirements from the Spot Market, on average
the Spot Market was in the low to mid 5¢range and that was a decrease when compared to the July costs.
Ms. Parenteau reported that on the capacity side the.RMLD hit a demand of approximately 159 MWs and that
occurred on August 31,2010 at 5:00 p.m.,this compared to a demand of approximately 155.7 MWs,which occurred
on August 18,2009 at 2:00 p.m.
IVIS. Parenteau stated that the RMLD capacity requirement, which is set on the peak that was hit in August 2009, is
212 MWs and overall to acquire that cost the RMLD paid$1.56 million,which is equivalent to $7.39 kW month for
capacity.
Ms.Parenteau reported that on the Transmission side the RMLD costs for August 2010 came in at$922,000 and that
was a slight increase in the range of 2.4%when compared to July of this current year.
Engineering and Operations Report,August 2010—Mr.Sullivan(Attachment 5)
Gaw Update
Mr. Sullivan reported on the Engineering and Operations(E&O)Report for August 2010. Mr. Sullivan reported that
some of the Gaw Transformer Upgrade Project Milestones notes for both the Scheduled and Tangible Milestones
have been changed. Mr. Sullivan stated that the Gaw remediation is complete as of today and transformer 110A,the
last transformer to go online has been fully loaded. Mr. Sullivan said that the RMLD is on schedule and all three
transformers are now in place. Mr. Sullivan noted that the schedule of milestones in the book does not reflect these
changes as it was written a couple of weeks ago. Mr. Sullivan reported that the RMLD is very close to completion; `
left to be done is to install two I I5kV switches,a section of sound wall and some final grading.
Regular Session Meeting Minutes 5
September 29,2010
Engineering and Operations Report,August 2010-Mr.Sullivan(Attachment 5)
Gaw Update
Mr. Sullivan stated that for the month the RMLD is up $36,500,which is split between RMLD, labor and procured
equipment.
Mr. Sullivan said that based on what the Board asked from the previous month the E&O and Accounting
Departments looked at all jobs in question from FYI 0, which included jobs 3, 6,7,8 &22. Mr. Sullivan stated that
the Departments delineated exactly how many crew weeks there were for all five jobs, then transferred those crew
weeks into dollars, subtracted the subsequent amount from the Routine Construction on this budget, which left the
total amount for the FYI l Capital Budget the same at$5.605 million and the amount of$389,254 is spread between
those five jobs.
M.G.L.Chapter 30B Bid
IFB 2011-06
Three Station 4 Disconnect Switches
Mr. Pacino made a motion seconded by Mr. Hahn move that bid 2011-06 115KV 2000 Amp Disconnect Switches
be awarded to EMSPEC Electro Mechanical Systems Inc. for a total cost of$43,480.00 on the recommendation of
General Manager.
Motion carried 5:0:0.
Discussion ensued.
Mr. Sullivan stated that bid 2011-06 is a bid for the replacement of four disconnects at Gaw substation,four 115KV
disconnects. Mr. Sullivan said that this invitation was sent out to ten vendors with five responses. Mr. Sullivan
reported that the total 2011 Capital Budget allocation for the Gaw 115KV disconnect switch replacement is
$48,000.00.
General Discussion
Chairman O`Neill asked if there was any general discussion,there was none.
BOARD MATERIAL AVAILABLE BUT NOT DISCUSSED
Rate Comparisons,August 2010
E-Mail responses to Account Payable/Payroll Questions
Upcoming Meetings
Monday,October 13,2010 Town of Reading Finance Committee Meeting
Monday,October 18,2010 Budget Committee Meeting
Wednesday,October 27,2010 RMLD Board Meeting
Wednesday,December 1,2010 RMLD Board Meeting(Tentative)
Executive"Session
At 9:18 p.m.Mr. Pacino made a motion seconded by Mr.Hahn that the Board go into Executive Session to approve
the Executive Session meeting minutes, to consider approval and release of Executive Session meeting minutes, to
discuss strategy with respect to litigation and based on Chapter 164 Section 47D exemption from public records,and
to return to Regular Session for the release of the Executive Session minutes and adjournment.
Motion carried by a polling of the Board 5:0:0.
Mr.Pacino,Aye;Mr.Hahn,Aye;Chairman O'Neill,Aye;Ms. Snyder,Aye;and Mr. Soli,Aye.
The Board re-entered Regular Session at 9:44 p.m.
Release of Executive Session Minutes November 18,2009
- Mr. Pacino made a motion seconded by Mr. Hahn to approve the release of the Executive Session meeting
minutes of November 18,2009 with changes as accepted.
Motion carried 5:0:0.
Regular Session Meeting Minutes 6
September 29,2010
Motion to Adjourn .
At 9:45 p.m.Mr.Pacino made a motion seconded by Mr. Hahn to adjourn the Regular Session.
Motion carried 5:0:0.
A true copy of the RMLD Board of Commissioners minutes
as approved by a majority of the Commission.
Philip Pacino,Secretary
RMLD Board of Commissioners
ATTACHMENT 1
TOWN OF READING, MASSACHUSETTS
READING MUNICIPAL LIGHT DEPARTMENT
Annual Financial Statements
For the Year Ended June 30
TABLE OF CONTENTS
PAGE
INDEPENRENT AUDITORS' REPORT 1
MANAGEMENT'S DISCUSSION AND ANALYSIS 3
BASIC FINANCIAL STATEMENTS:
Proprietary Funds:
Statement et Asse 6
D
-fief. n of Reve �d h s 1n
N As et 7
St men ts of Cash Flows 8
Fiduciary Funds:
Statements of Fiduciary Net Assets 9
Statements of Changes in Fiduciary Net Assets 10
Notes to Financial Statements 11
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Funding Progress 28
INDEPENDENT AUDITORS' REPORT
To the Municipal Light Board
Town of Reading Municipal Light Department
Reading, Massachusetts
We have audited the accompanying financial statements of the le pe
activities, and the aggregate remaining fund inform
tiding
Municipal Light Department ("the Departm t") (anwn of
Reading), as of and for the year ende ,` une 30, 20prise
the Department's basic Istat a is lists. These
financial stateme s are the re pons' ilit of th De artent's mt. Our
res i ' is t ex res an; pini n o t se' ma cial statemen our
udit.
We and cte o r au' it acc an with auditing standards generally accepted
in,the U fed to es:o`Am hose standards require that we plan and perform
he it to tai sonable assurance about whether the financial statements
re"fre material misstatement. An audit includes examining, on a test basis,
i ence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant esti-
mates made by management, as well as evaluating the overall financial statement
presentation. We believe our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all mate-
rial respects, the financial position of the business-type activities, and the aggregate
remaining fund information of the Town of Reading Municipal Light Department as of
June 30, 2010, and the respective changes in financial position and cash flows,
where applicable thereof, for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
The management's discussion and analysis, appearing on the following pages,
and the supplementary information, appearing on page 28, are not a required part of
the basic financial statements but are supplementary information required by
accounting principles generally accepted in the United States of America. We have
applied certain limited procedures, which consisted principally of inquiries of
management regarding the methods of measurement and presentation of the
required supplementary information. However, we did not audit the information and
express no opinion on it.
The financial statements include certain prior-year summarized comparative infor-
mation. Such information does not include sufficient detail to constitute a presenta-
tion in conformity with generally accepted accounting principles. Accordingly, such
information should be read in conjunction with the Department's financial statements
for the year ended June 30, 2009, from which the summarized information was
derived.
Andover, Massachusetts
2010 (date upon acceptance by Client)
D
2
MANAGEMENT'S DISCUSSION AND ANALYSIS
Within this section of the Town of Reading Municipal Light Department's ("the
Department") annual financial report, management provides a narrative discussion
and analysis of the financial activities for the year ended June 30, 2010. The
Department's performance is discussed and analyzed within the context of the
accompanying financial statements and disclosures following this section.
A. OVERVIEW OF THE FINANCIAL STATEMENTS
The basic financial statements include (1) the statements of net assets, (2) the
statements of revenues, expenses and changes in net assets, (3) the statements
of cash flows, and (4) notes to financial statements.
The Statements of Net Assets is designed to indicate our financial posi ' of
a specific point in time. At June 30, 2010, it shows our net w 90;81 ,864
which is comprised of$ 66,881,500 invested in ca se s $4.`801, 4
restricted for depreciation fund, and $ 19,136,6 0 'nre
The Statements of Re es, Ex enses nd C tinges'=in et Ass is s mmarize
our operating is and re eats .o` uc if ny, profit was arn` d for
th As iscu e an ore et I elo ou :net'profit for the nded
June'30, 01 wad--",. ,148.
LS ate e ts.o C sh>FI w :,P,,,-"'vides ormation about the cash receipts and
h ay en s dta ing he nting period. It also provides information about
ves ng nd�� nancing activities for the same period. A review of our State-
nt& Cas Flows indicates that cash receipts from operating activities ade-
ely cover our operating expenses.
Summary of Net Assets
2010 2009
Current assets $ 18,383,234 $ 18,039,433
Noncurrent assets 83,634,574 80,758,906
Total assets 102,017,808 98,798,339
Current Liabilities 7,438,252 7,530,820
Noncurrent liabilities 3,759,692 3;227,803
Total liabilities 11,197,944 10,758,623
Net assets:
Invested in capital assets,
net of related debt 66,881,500 64,107,090
Restricted for depreciation fund 4,801694 4,403,130
Unrestricted 19,136,670 19,529,496
Total net assets 90,819,864 88,039,716
Total Liabilities and Net Assets $ 102,017,808 $ 98,798,339
3
Summary of Changes in Net Assets
2010 2009
Operating revenues $ 86,542,838 $ 94,167,985
Operating expenses (83,229,057) (92,534,445)
Operating Income 3,313,781 1,633,540
Non-operating revenues (expenses) (533,633) (1,216,853)
Change in Net Assets 2,780,148 416,687
Beginning net assets 88,039,716 87,623,029
Ending Net Assets $ 90,819,864 $ 88,039,716
B. FINANCIAL HIGHLIGHTS
Electric sales (net of discounts) were $ 80,892,291 in 201 ecrease o 2%
from the prior year. Kilowatt hours sold decrea .7%1 390P39 in
2010, compared to 696,060,848 in 20 In 20 0, r yers wer charged
$ 586;718 in fuel charge adjustme ts, co,; pare to c of$ 8 40E6in
2009. In 2010, r ers,; ere ar ed. urch se=pow djustm nts f
$ 5,063,829 mpar to $ 22 188 n 20 9.
jueing x ens` s we ' $ 83 29;057 in 20 0 .a verall decrease of 10.1%
009. Tie la st•.po. io .of is to ' 8,012,702 was for purchase
exp rises.. t r op expenses included $10,596,447 for general
ng- n mai ten costs, and $1,096,431 in unanticipated costs for
s w mitigation measures associated with the GAW Substation
project. In addition, the Department incurred costs of$ 1,282,631 for
voluntary payments to Towns, and depreciation expense of$ 2,240,846. In fiscal
2010, the depreciation rate was at 2.0%.
In fiscal year 2010, the Department was contributed $ 200,000 to the Reading
Municipal Light Department Employees' Pension Trust (the "Trust"). In addition,
the Trust contributed $ 919,336 to the Town of Reading Contributory Retirement
System on behalf of the Department's employees.
C. CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets. Total investment in land at year end amounted to $ 1,265,842;
there was no change from the prior year. Total investment in depreciable capital
assets at year end amounted to $ 65,615,657 (net of accumulated depreciation),
an increase of$ 2,224,409 from the prior year. This investment in depreciable
capital assets includes structures and improvements, equipment and furnishings,
and infrastructure assets.
4
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the Reading
Municipal Light Department's finances for all those with an interest in the govern-
ment's finances. Questions concerning any of the information provided in this
report or requests for additional financial information should be addressed to-
Accounting/Business Manager
Town of Reading Municipal Light Department
230 Ash Street
Reading, Massachusetts 01867
D
f
5
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
BUSINESS-TYPE PROPRIETARY FUND
STATEMENTS OF NET ASSETS
JUNE 30,2010 AND 2009
2010 2009
ASSETS
Current:
Unrestricted cash and short-term investments $ 8,167,774 $ 8,635,772
Receivables, net of allowance for uncollectibles 7,823,935 7,087,246
Prepaid expenses 756,954 767,869
Inventory 1,634,571 1,563,070
Total current assets 18,383,234 18,053,957
Noncurrent:
Restricted cash and short-term investments 15,255,385 11 37
Restricted investments 1,400,000 4,400, 00
Investment in associated companies 97 391
Land and construction in progress 65,842 1 265,842
Capital assets, net of accumulated depreciation 65,615, 57 63 391,248
Other - 1,465
Total noncurrent ass e 83,634, 80 744,383
TO SETS 10 ,017, 08 98,798,340
LIABILITIES
Cu ent:
-courts p abl 6,188,258 5,448,255
usto r depo is 499,197 496,335
ustome ances for construction 333,919 696,517
A rued liabilities 343,076 258,000
Current portion of long-term liabilities:
Bonds payable - 550,000
Accrued employee compensated absences 73,802 81,713
Total current liabilities 7,438,252 7,530,820
Noncurrent:
Accrued employee compensated absences 2,946,231 2,791,401
Other post-employement benefits 813,461 436,402
Total noncurrent liabilities 3,759,692 3,227,803
TOTAL LIABILITIES 11,197,944 10,758,623
NET ASSETS
Invested in capital assets, net of related debt 66,881,500 64,107,090
Restricted for depreciation fund 4,801,694 4,403,130
Unrestricted 19,136,670 19,529,496
TOTAL NET ASSETS $ 90,819,864 $ 88,039,716
See notes to financial statements 6
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
BUSINESS-TYPE PROPRIETARY FUND
STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS
FOR THE YEARS ENDED JUNE 30,2010 AND 2009
2010 2009
Operating Revenues:
Electric sales, net of discounts of$4,115,808
and $3,771767, respectively $ 80,892,291 $ 91,111,013
Purchase power and fuel charge adjustments:
Fuel charge adjustment 586,718 834,086
Purchase power adjustment 5,063,829 2,222,886
Total Operating Revenues 86,542,838 ;9 5
Operating Expenses:
Purchase power 68,01 12,7 77 72,343
Operating ,780, 35 9106,788
Maintenance 1,815,612 1 12,948
Hazardous waste miti on,GAW su tatio 1;09.6, -
Depreci ,240,' 46 134,387
untarypayme is t tows s� 1,282, 31 1,207,979
Tota p sting' x enses , 57 92,534,445
,Operating Inco e 3,313,781 1,633,540
No operating venu s (Expenses):
on ' ns in aid of construction 772,279 177,680
Interest income 184,618 398,369
Interest expense (11,620) (49,911)
MMWEC refund 371,273 107,879
Loss on disposal of capital assets (3,571) (39,767)
Return on investment to Town of Reading (2,186,670) (2,112,725)
Other 340,058 301,622
Total Nonoperating Revenues(Expenses), Net (533,633) (1,216,853)
Change in Net Assets 2,780,148 416,687
Net Assets at Beginning of Year 88,039,716 87,623;029
Net Assets at End of Year $ 90,819,864 $ 88,039,716
See notes to financial statements.
7
TOWN OF READING,MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
BUSINESS-TYPE PROPRIETARY FUND
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED JUNE 30,2010 AND 2009
2010 2009
Cash Flows From Operating Activities:
Receipts from customers and users $ 80,158,464 $ 93,182,410
Payments to vendors and employees (80,060,874) (90,332,097)
Customer refund, purchase power,and fuel charge adjustments 5,650,547 3,056,972
Net Cash Provided By(Used For)Operating Activities 5,748,137 5,907,285
Cash Flows From Noncapital Financing Activities:
Return on investment to Town of Reading (2,186,670) (2,112,725)
MMWEC refund 371,273 107,879
Other 340,058 301,622
Net Cash Provided By(Used For)Noncapital Financing Activities (1,475,339 (1, 03,224)
Cash Flows From Capital and Related Financing Activities:
Acquisition and construction of capital assets 8,826) (6,852,061)
Principal payment on notes 000) (550,0.00)
Interest expense (11 620) (49,911)
Contributions in aid of construc' 279 177,680
Net Cash Pro=tavestin
F r)Cap tal an Rel ed Fi anci g A tivitie (4,258,167) (7,274,292)
Cash FI ws A tivities:
InvestLdi come 184,618 398,369
(Incre ,creas in re tri ed ca h a invest nts (667,247) (551,658)
Net Casv e y(LI d F r)Inv ting Activities (482,629) (153,289)
Netge-in h and Short-Term Investments (467,998) (3,223,520)
Unrestricted Cash and Short Term Investments, Beginning of Year 8,635,772 11,859,292
Unrestricted Cash and Short Term investments, End of Year $ 8,167,774 $ 8,635,772
Reconciliation of Operating Income to Net Cash:
Operating income $ 3,313,781 $ 1,633,540
Adjustments to reconcile operating income to net
cash provided by(used for)operating activities:
Depreciation expense 2,240,846 3,134,387
Other post-employment benefits 377,059 436,402
Changes in assets and liabilities:
Accounts receivable (736,689) 2,056,390
Prepaid and other assets 12,379 (597,112)
Inventory (71,501) 99,512
Accounts payable 740,003 (1,001,875)
Accrued liabilities 231,995 145,054
Other liabilities (359,736) 987
Net Cash Provided By(Used For)Operating Activities $ 5,748,137 $ 5,907,285
See notes to financial statements.
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
FIDUCIARY FUND-RETIREMENT TRUST
STATEMENTS OF FIDUCIARY NET ASSETS
JUNE 30, 2010 AND 2009
2010 2009
ASSETS
Cash and short-term investments $ 4,017,679 $ 3,616,255
Investments 1,800,000q6,255
Other ;000TOTAL ASSETS 017,
ET ASSETS
Netasset held n t ust f r p sion r efits $ 6,017,679 $ 6,616,255
See notes to financial statements.
9
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
FIDUCIARY FUND- RETIREMENT TRUST
STATEMENTS OF CHANGES IN FIDUCIARY NET ASSETS
FOR THE YEARS ENDED JUNE 30, 2010 AND 2009
2010 2009
Additions:
Contributions from Reading Municipal Light Department $ 200,000 $ 360;000
Interest and dividend income 120,760 212,085
Total additions 320,760 572 085
Deductions:
Paid to Reading Contributory Retirement System 9,336 896,185
Total deductions 9 , 896,185
Ne ease(dec ase in n t a ets ( 8,576) (324,100)
Net sset Avai ble f r enefi eginn g Ye 6,616,255 6,940,355
NetAssets Ava'able or enefi s, En ar $ 6,017,679 $ 6,616,255
See notes to financial statements.
10
Town of Reading, Massachusetts Municipal Light Department
Notes to Financial Statements
1. Summary of Significant Accounting Policies
The significant accounting policies of the Town of Reading Municipal Light
Department ("the Department") (an enterprise fund of the Town of Reading)
are as follows:
A. Business Activity - The Department purchases electricity which it distrib-
utes to consumers within the towns of Reading, North Reading,
Wilmington, and Lynnfield.
B. Regulation and Basis of Accounting - Under Massachusetts Gen��
Laws, the Department's electric rates are set by theM a LI ight B ard.
Electric rates, excluding the fuel charge, canc ngeI mo often
than once every three months. Rate sch dules a wit the Mass-
achusetts Department of Pu is U 'lities (DPU . e the CPU,Exercises
general supero' author' yover e DE partment, he Dep rtm nt's
rates a of subject o D rov I. T e 1,D artment's p)licyis to
par its: ' an ial "tate en' s co for ity ith generally epted
ac` u ting` cipl s.
Rud Pro ri tary s dis in uis oper ing revenues and expenses from non-
0 ati g it ms. O g revenues and expenses generally result from
pr 'vidi rvices and producing and delivering goods in connection with
proprietary fund's principal ongoing operations. The principal operating
revenues of the enterprise fund are charges to customers for sales and
services. Operating expenses for enterprise funds include the cost of
sales and services, administrative expenses and depreciation on capital
assets. All revenues and expenses not meeting this definition are
reported as nonoperating revenues and expenses.
Private-sector standards of accounting and financial reporting issued prior
to December 1, 1989 generally are followed in the proprietary fund finan-
cial statements to the extent that those standards do not conflict with or
contradict guidance of the Governmental Accounting Standards Board.
Governments also have the option of following subsequent private-sector
guidance for their enterprise funds, subject to this same limitation. The
Department has elected not to follow subsequent private-sector guidance.
C. Concentrations - The Department operates within the electric utility Indus-
try which has undergone significant restructuring and deregulation. Legis-
lation was enacted by the Commonwealth of Massachusetts in 1998 which
changed the electric industry. The law introduced competition and pro-
11
vided consumers with choices while assuring continued reliable service.
Municipal utilities are not currently subject to this legislation.
D. Retirement Trust- The Reading Municipal Light Department Employees'
Pension Trust (the "Trust") was established on December 30, 1966, by
the Town of Reading's Municipal Light Board pursuant to Chapter 164 of
the General Laws of the Commonwealth of Massachusetts.
The Trust constitutes the principal instrument of a plan established by the
Municipal Light Board for the purpose of funding the Department's annual
required contribution to the Town of Reading Contributory Retirement
System (the System), a cost sharing, multi-employer public employee
retirement system.
E. Revenues - Revenues are based on rates established by the Department
and filed with the DPU. Revenues from sales of electricity are recorded on
the basis of bills rendered from monthly meter readings take cile
basis and are stated net of discounts. Recognitio � en to the unt
of sales to customers which are unbilled .end o t cal eriod.
F. Cash and Short-term Invest. ents Fort e,p of the Statement of
Cash Flows artme t c nsi` ers b th.restr' ` d and unrestricted
cash o depo ' with; he T w rea urer to b cash or sho -ter invest-
nts. For pur ose of th S en of et Assets, the pr rietary funds
con id r in sten is wi original mat rt!s months or less to be
-t rm;i stm ts.
3Gs�o
,Inv st ent - S local statutes place certain limitations on the
.n ure "posits and investments available. Deposits in any financial
institution may not exceed certain levels within the financial institution.
Non-fiduciary fund investments can be made in securities issued or
unconditionally guaranteed by the U.S. Government or agencies that
have a maturity of one year or less from the date of purchase and
repurchase agreements guaranteed by such securities with maturity
dates of no more than 90 days from date of purchase.
Investments for the Department and the Trust consist of U.S. government
bonds that are being held to maturity. Investments are carried at cost.
H. Inventory - Inventory consists of parts and accessories purchased for
use in the utility business for construction, operation and maintenance
purposes and is stated at average cost. Meters and transformers are
capitalized when purchased.
I. Capital Assets and Depreciation - Capital assets, which include property,
plant, equipment, and utility plant infrastructure, are recorded at historical
cost or estimated historical cost when purchased or constructed. Donated
capital assets are recorded at estimated fair market value at the date of
the donation.
12
The cost of normal maintenance and repairs that do not add to the value
of the asset or materially extend asset lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as they
are acquired or constructed. Interest incurred during the construction phase
of proprietary fund capital assets is included as part of the capitalized value
of the constructed asset. When capital assets are retired, the cost of the
retired asset, less accumulated depreciation, salvage value and any cash
proceeds, is charged to the Department's unrestricted net assets account.
Massachusetts General Laws require utility plant in service to be depre-
ciated at an annual rate of 3%. To change this rate, the Department must
obtain approval from the DPU. Changes in annual depreciation rates
may be made for financial factors relating to cash flow for plant expansion,
rather than engineering factors relating to estimates of useful lives.
In 2010, the Department requested and was granted I. fission by
DPU to temporarily reduce its depreciation r 0 r'th fisc year.
J. Accrued Com ensated Abs es Empl yee vac on leav is Vested
annually but m ly be c rried fo and to the suc' eeding ear with
superoapproval nd, if ap opri te, Within"` e terms oft e a plicable
part en o i Y10 uni c nt act. Ge eral y, sick leave ccumu-
J
ac ordi1=a u 'on a d partme t ontr cts and policy, and is paid
n rural terms do at t rent a pay. The Department's
y i to ec gniz v cati n cos s at the time payments are made.
D parten re accumulated, unused, vested sick pay as a lia-
h mount recorded is the amount to be paid at termination at the
nt rate of pay.
K. Lonq-Term Obligations - The proprietary fund financial statements report
long-term debt and other long-term obligations as liabilities in the pro-
prietary fund statement of net assets.
L. Use of Estimates - The preparation of financial statements in conformity
with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosures for contingent assets and liabilities
at the date of the financial statements, and the reported amounts of the
revenues and expenses during the fiscal year. Actual results could vary
from estimates that were used.
M. Rate of Return - The Department's rates must be set such that earnings
attributable to electric operations do not exceed eight percent of the net
cost of plant. The audited financial statements are prepared in accor-
dance with auditing standards generally accepted in the United States of
America. To determine the net income subject to the rate of return, the
Department performs the following calculation. Using the net income per
13
the audited financials, the return on investment to the Town of Reading
is added back, the fuel charge adjustment is added or deducted, and
miscellaneous debits/credits (i.e. gain/loss on disposal of fixed assets,
etc.) are added or deducted, leaving an adjusted net income figure for
rate of return purposes. Investment interest income and bond principal
payments are then deducted from this figure to determine the net income
subject to the rate of return. The net income subject to the rate of return
is then subtracted from the allowable eight percent rate of return, which
is calculated by adding the book value of net plant and the investment in
associated companies less the contributions in aid of construction multi-
plied by eight percent. From this calculation, the Municipal Light Board
will determine what cash transfers need to be made at year end.
2. Cash and Investments
Cash and investments as of June 30, 2010 are classified in the pa
hying financial statements as follows:
Statement of net assets:
Unrestricted cash and short-ter rove tment 8,167, 74
Restricted nd:s rt-ter in,, str nts 15,255, 85
Restrict inv nfis 1,400, 0
Fi4shand
nds
sho erm ves me 4,017,679
Ints 1,800,000
c sh d investments $ 30,640,838
Cainvestments at June 30, 2010 consist of the following:
Cash on hand $ 3,000
Deposits with financial institutions 27,437,838
Investments 3,200,000
Total cash investments $ 30,640,838
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that the fair value of an investment will be
adversely affected by changes in market interest rates. Generally, the
longer the maturity of an investment, the greater the sensitivity of its fair
value to changes in market interest rates. One of the ways that the
Department manages its exposure to interest rate risk is by purchasing
a combination of shorter term and longer term investments and by timing
cash flows from maturities so that a portion of the portfolio is maturing or
coming close to maturity evenly over time as necessary to provide the
cash flow and liquidity needed for operations.
14
As of June 30, 2010, the Department (including the Pension Trust) had the
following investments:
Restricted Pension Maturity Moody's
Investments Trust Date Rating
Government agency bonds
Freddie Mac $ 1,400,000 $ - 7/15/2014 AAA
Freddie Mac - 1,800,000 2/15/2015 AAA
Total $ 1,400,000 $ 1,800,000
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that the issuer of an investment will not fulfill
its obligation to the holder of the investment. This is measured by the assign-
ing of a rating by a nationally recognized statistical rating organization. Pre-
sented below is the actual rating as of year end for each of the DFrE
nt's
(including the Pension Trust) investment types:
Mi imu ating a of Yd
egalNot
Investment Type Am untRating AAA Rated
Governme t agep"onds $ 3, 0 ,000 /A $ 3,200,OC2_ -
Total $ 3 V $ 3 00,000 -
20 0,000 $
C nee tration o Cred isl.
e: epal t follows the Town of Reading's investment policy, which does
,:n ' emit the amount that can be invested in any one issuer beyond that stipu-
lated by Massachusetts General Laws. Investments in any one issuer (other
than U.S. Treasury securities, mutual funds, and external investment pools)
that represent more than 5% of the Department's total investments (including
the Pension Trust investments) are as follows:
Reported
Issuer Investment Type Amount
Freddie Mac Government agency bonds $ 3,200,000
Custodial Credit Risk
Custodial Credit Risk for deposits is the risk that, in the event of the failure of
a depository financial institution, the Department will not be able to recover its
deposits or will not be able to recover collateral securities that are in the pos-
session of an outside party. The custodial credit risk for investments is the
risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to
a transaction, the Department will not be able to recover the value of its
investments or collateral securities that are in the possession of another
15
party. Massachusetts General Laws, Chapter 44, section 55, limits deposits
"in a bank or trust company or banking company to an amount not exceeding
sixty per cent of the capital and surplus of such bank or trust company or
banking company, unless satisfactory security is given to it by such bank or
trust company or banking company for such excess." The Department
follows the Massachusetts statute as written, as well as the Town of
Reading's deposit policy for custodial credit risk.
Because the Department pools its cash with the Town of Reading, the spe-
cific custodial credit risk of the Department's deposits could not be deter-
mined at June 30, 2010. As of June 30, 2010, Department investments
(including the Pension Trust) in the following investment types were held by
the same broker-dealer (counterparty) that was used by the Department to
buy the securities:
Investment Type Reported Amount
Government agency bonds $ 3,200,000
Total 200; 0
3. Restricted C n Inve m` nts
;eferred"
ed cas an inv` stm nts c sist f tie fo lowing at Jun 0, 2010:
Cash Investments
ati n fu d $ 4,801,694 $ -
df el r ery 2,326,112 -
abi' ation 3,949,468 1,400,000
energy conservation reserve 308,882 -
Reserve for uncollectible accounts 200,000
Sick leave benefits 3,020,033 -
Hazardous waste fund 150,000 -
Customer deposits 499,196 -
Total $ 15,255,385 $ 1,400,000
Restricted investments are invested in government agency bonds, which will
be held to maturity, and are reported at book value of$ 1,400,000. The fair
market value of the investments at June 30, 2010 was $ 1,401,316.
The Department maintains the following restricted cash accounts:
Depreciation fund - The Department is normally required to reserve
3.0% of capital assets each year to fund capital improvements. The
Department received special permission from the DPU to reduce this
rate to 2% for fiscal year 2010.
16
Deferred fuel reserve - The Department transfers the difference
between the customers' monthly fuel charge adjustment and actual
fuel costs into this account to be used in the event of a sudden
increase in fuel costs.
- Rate stabilization - The Department transfers funds in excess of 8%
of capital assets to this account to be used to stabilize customer rates.
- Deferred energy conservation reserve - This account is used to
reserve monies collected from a special energy charge added to cus-
tomer bills. Customers who undertake measures to conserve and
improve energy efficiency can apply for rebates that are paid from this
account.
- Reserve for uncollectible accounts - This account was set up to offset
a portion of the Department's bad debt reserve.
- Sick leave benefits - This account is used to o e 'Depart s
actuarially determined compensated nce"liak li .
Hazardous waste fund - his re erve as p' y the oar" of
Com ers; coy th ,De artm nt s; nce de ucti le in
the even ma or h zar us " ter als i` cident.
u tomer de sits - ustome dep s is t are held in escrow.
4. A cont Re ei
ounts receivable consists of the following at June 30, 2010:
Customer Accounts:
Billed $ 3,775,128
Less allowances:
Uncollectible accounts (200,000)
Sales discounts (353,510)
Total billed 3,221,618
Unbilled, net 4,055,159
Total customer accounts 7,276,777
Other Accounts:
Merchandise sales 69,192
MMWEC flush 387,497
Liens and other 90,469
Total other accounts 547,158
Total net receivables $ 77823,935
17
5. Prepaid Expenses
Prepaid expenses consist of the following:
Insurances $ 272,954
Purchase power 61,843
PASNY prepayment fund 247,207
WC Fuel -Watson 174,950
Total $ 756,954
6. Inventory
Inventory is comprised of supplies and materials at June 30, 2010, and is
valued using the average cost method.
7. Investment in Associated Companies
Under agreements with the Ne ng nd H dro ran ission lect is Com-
pany, Inc. (NEH) a e New n 'Ian Hydr -Transmi 'sion C rpor tion
(NHH), th partrnent. as d ` he f Ilowi ;g a ances to fu d its equity
eme is f Hy ro- ue Pha e II me connection. epart-
meet i carryin + inv strn nt a :cost, re u d b: shares repurchased.
e De a ment's eq p sitio a`Pr j is less than one-half of one
pe .cen
es a in ssociated companies consists of the following, at June 30, 2010:
ew England Hydro-Transmission
Electric Company, Inc. $ 31,252
New England Hydro-Transmission Corporation 66,438
Total $ 97,690
18
8. Capital Assets
The following is a summary of fiscal year 2010 activity in capital assets (in
thousands):
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities:
Capital assets, being depreciated:
Structures and improvements $ 13,512 $ 9 $ - $ 13,521
Equipment and furnishings 27,856 1,847 (452) 29,251
Infrastructure 70,673 2,613 (684) 72,602
Total capital assets, being depreciated 112,041 4,469 (1,136) 115,374
Less accumulated depreciation for:
Structures and improvements (6,515) (257) - (6,772)
Equipment and furnishings (16,374) (810) 452 (16,732)
Infrastructure (25,762) (1,173) 6 _ (26,255
Total accumulated depreciation (48,651) 41,132 49,759)
Total capital assets, being depreciated, net 2 2 O 65,615
Capital assets, not being depreciated:
Land 1,266 - - 1,266
Total capitalAss,at ,not ing dep ecia d 1266 - - 1,266
_-Capital as ets, n 656' $ 2,229 $ ) $ 66,881
9. A cou t 'Pa` a `1e
cco 'nts le represent fiscal 2010 expenses that were paid after June 30,
2
10. Customer Deposits
This balance represents deposits received from customers that are held in
escrow.
11. Customer Advances for Construction
This balance represents deposits received from vendors in advance for work to
be performed by the Department. The Department recognizes these deposits
as revenue after the work has been completed.
19
12. Accrued Liabilities
Accrued liabilities consist of the following at June 30, 2010:
Accrued payroll $ 199,601
Accrued interest 1,112
Other 142,363
Total $ 343,076
13. Bonds Payable
The following summarizes activity in bonds payable for the year ended
June 30, 2010.
Balance Balance Less Long-Te
7/1/09- Maturities 6/30/10 Current ortion
$ 550,000 $___(5 50,000) $ - $ I
-14. Accrued o. .ee` om n ted bs
Depar e t err�iee are ran sick a e in arying amounts. Upon
irern` nt terrninati or eath, loye s ompen sated for unused
si lea a (sub e to c n ii itatio at their then current rates of pay.
[55. Re ictedlqet Assets
The proprietary fund financial statements report restricted net assets when
external constraints are placed on net assets. Specifically, restricted net
assets represent depreciation fund reserves, which are restricted for future
capital costs.
16. Post-Employment Health Care and Life Insurance Benefits
Other Post-Employment Benefits
The Department follows GASB Statement 45, Accounting and Financial
Reporting by Employers for Postemployment Benefits Other Than Pensions.
Statement 45 requires governments to account for other post-employment
benefits (OPEB), primarily healthcare, on an accrual basis rather than on a
pay-as-you-go basis. The effect is the recognition of an actuarially required
contribution as an expense on the Statement of Revenues, Expenses, and .
Changes in Net Assets when a future retiree earns their post-employment
benefits, rather than when they use their post-employment benefit. To the
extent that an entity does not fund their actuarially required contribution, a
20
post-employment benefit liability is recognized on the Statement of Net
- . Assets over time.
A. Plan Description
In addition to providing the pension benefits described in Note 17, the
Department provides post-employment health and life insurance benefits
for retired employees through the Town of Reading's Massachusetts Inter-
local Insurance Association (MITA) Health Benefits Trust. Benefits, benefit
levels, employee contributions and employer contributions are governed
by Chapter 32 of the Massachusetts General Laws. As of June 30, 2008,
the actuarial valuation date, approximately 72 retirees and 64 active
employees meet the eligibility requirements. The plan does not issue a
separate financial report.
B. Benefits Provided
The Department provides post-employment medical ription dr,
and life insurance benefits to all eligible rets and h it s rvivi g
spouses. All active employees w o retir fro epartm nt.-and meet
the eligibility criteria will be igible to rec ive enefits
C. Fun din ol(iccyy
?Re re s coit�Ute 0% f#h cost of h ;me` ical and prescription drug
P p g
pla , a determine by e, ealth: its Trust. Retirees also
con ib to_5 ° ;of th em` m for a $ 5,000 life insurance benefit. The
De art en co rib a remainder of the medical, prescription drug,
a lif i rance plan costs on a pay-as-you-go basis.
Annual OPEB Costs and Net OPER Obligation
The Department's fiscal 2010 annual OPEB expense is calculated based
on the annual required contribution of the employer (ARC), an amount
actuarially determined in accordance with the parameters of GASB State-
ment No. 45. The ARC represents a level of funding that, if paid on an
ongoing basis, is projected to cover the normal cost per year and amortize
the unfunded actuarial liability over a period of twenty years. The follow-
ing table shows the components of the Department's annual OPEB cost
for the year ending June 30, 2010, the amount actually contributed to the
plan, and the change in the Department's net OPEB obligation based on
an actuarial valuation as of June 30, 2008.
21
Annual Required Contribution (ARC) $ 878,668
Interest on net OPEB obligation -
Adjustment to ARC -
Annual OPEB cost 878,668
Contributions made (501,609)
Increase in net OPEB obligation 377,059
Net OPEB obligation - beginning of year 436,402
Net OPEB obligation - end of year $ 813,461
The Department's annual OPEB cost, the percentage of annual OPEB cost
contributed to the plan, and the net OPEB obligation were as follows:
Annual Percentage of
OPEB OPENet OP
Fiscal year ended Cost Cos ontrib, bli a ion
2010 $ 87", 68 57.0` °/ $ '813 461
2009 $ 89 ,1;; 0 50.97 0 $ 436 402
D parties 's=n t 0 EB gati a of une 30, 2010 is recorded as
a c m
one oft "no urrent.li biliti s']i it
in the Statements of
Net. sets;
E Fu `de Sta us undin Pro ress
he funded status of the plan as of June 30, 2008, the date of the most
recent actuarial valuation was as follows:
Actuarial accrued liability (AAL) $ 8,085,388
Actuarial value of plan assets
Unfunded actuarial accrued liability (UAAL) $ 8,085,388
Funded ratio (actuarial value of plan assets/AAL) 0%
Covered payroll (active plan members) Not available
UAAL as a percentage of covered payroll Not available
Actuarial valuations of an ongoing plan involve estimates of the value of
reported amounts and assumptions about the probability of events far into
the future. Examples include assumptions about future employment,
mortality, and the healthcare cost trend. Amounts determined regarding
the funded status of the plan and the annual required contributions of the
employer are subject to continual revision as actual results are compared
to past expectations and new estimates are made about the future. The
22
schedule of funding progress, presented as required supplementary
information following the notes to the financial statements, presents multi-
year trend information about whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liability
for benefits.
F. Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the
plan as understood by the Department and the plan members and include
the types of benefits provided at the time of each valuation and the his-
torical pattern of sharing of benefit costs between the Department and
plan members to that point. The actuarial methods and assumptions
used include techniques that are designed to reduce short-term volatility
in actuarial accrued liabilities and the actuarial value of assets, consistent
with the long-term perspective of the calculations.
In the June 30, 2008 actuarial valuation, the Projec it°Credit aria[
cost method was used. The actuarial val assets a t.d termined,
as the Department has not adv e fund `d it gation. he a tuarial
assumptions included a 7.7 % investment rat urn an anti itial
annual hea e: st tre d:r to v 10. %o whic crease ao 5.0%
long-tm rate D all ealt ca :ben fits after seven years. _The amortiza-
r co is f r th ��init�'' I U L's lei PE,tcen age ofpayrol amortization,
wit a orti ion yme is increasing t 2.5; per year for a period of
20 a s.
7, ern onMain
The Department follows the provisions of GASB Statement No. 27, (as
amended by GASB 50) Accounting for Pensions for State and Local
Government Employees, with respect to the employees' retirement funds.
Chapter 32 of the Massachusetts General Laws assigns the System the
authority to establish and amend benefit provisions of the plan, and the
State legislature has the authority to grant cost-of-living increases. The
System issues a publicly available financial report which can be obtained
through the Town of Reading Contributory Retirement system at Town
Hall, Reading, MA.
A. Plan Description
The Department contributes to the Town of Reading Contributory Retire-
ment System (the System), a cost-sharing, multiple-employer, defined
benefit pension plan administered by a Town Retirement Board. The
System provides retirement, disability and death benefits to plan mem-
bers and beneficiaries. Chapter 32 of the Massachusetts General Laws
assigns the System the authority to establish and amend benefit provi-
sions of the plan, and grant cost-of-living increases.
23
B. Funding Policy
Plan members are required to contribute to the System at rates ranging
from 5% to 11% of annual covered compensation. The Department is
required to pay into the System its share of the remaining system wide
actuarially determined contribution plus administration costs which are
apportioned among the employers based on active covered payroll.
The contributions of plan members and the Department are governed
by Chapter 32 of the Massachusetts General Laws. The Department's
contributions to the System for the years ended June 30, 2010, 2009, and
2008 were $ 919,336, $ 896,185, and $ 1,055,758, respectively, which
were equal to its annual required contributions for each of these years.
18. Participation in Massachusetts Municipal Wholesale Electric
Company
The Town of Reading, acting through its Light Departme a particip t in
certain Projects of the Massachusetts Munici oles I EI tric ompany
(MMWEC).
MMWEC is a pub ' oratio ,a,,,)d a otitic "I subdivis' n of theCo mon-
wealth of ssachusett cre ted` s a, ea s•to;` evelop a but po er supply
Me beWrshi
;oth r u itie`. M EC is.a thorized to c uct, own,
or;pur a e o inter sts rn, and:t is ue ; venue bonds to finance,
V.ea
a ilitie. Proje ts). M ha c fired ownership interests in
a ilitie o erate y o er entities and also owns and operates its
t c fa ilitie EC sells all of the capability (Project Capability)
of' ojects to its Members and other utilities (Project Participants)
ower Sales Agreements (PSAs). Among other things, the PSAs
qeach Project Participant to pay its pro rata share of MMWEC's costs
related to the Project, which costs include debt service on the revenue bonds
issued by MMWEC to finance the Project, plus 10% of MMWEC's debt ser-
vice to be paid into a Reserve and Contingency Fund. In addition, should a
Project Participant fail to make any payment when due, other Project Partici-
pants of that Project may be required to increase (step-up) their payments
and correspondingly their Participant's share of that Project's Project Capa-
bility to an additional amount not to exceed 25% of their original Participant's
share of that Project's Project Capability. Project Participants have cove-
nanted to fix, revise, and collect rates at least sufficient to meet their obliga-
tions under the PSAs.
MMWEC has issued separate issues of revenue bonds for each of its eight
Projects, which are payable solely from, and secured solely by, the reve-
nues derived from the Project to which the bonds relate, plus available funds
pledged under MMWEC's Amended and Restated General Bond Resolution
(GBR) with respect to the bonds of that Project. The MMWEC revenues
derived from each Project are used solely to provide for the payment of the
bonds of any bond issue relating to such Project and to pay MMWEC's cost
24
of owning and operating such Project and are not used to provide for the
payment of the bonds of any bond issue relating to any other Project.
MMWEC operates the Stony Brook Intermediate Project and the Stony
Brook Peaking Project, both fossil-fueled power plants. MMWEC has a 3.7%
interest in the W.F. Wyman Unit No. 4 plant, which is operated and owned by
its majority owner, FPL Energy Wyman IV, LLC, a subsidiary of NextEra
Energy Resources LLC (formerly FPL Energy LLC), and a 4.8% ownership
interest in the Millstone Unit 3 nuclear unit, operated by Dominion Nuclear
Connecticut, Inc. (DNCI), the majority owner and an indirect subsidiary of
Dominion Resources, Inc. DNCI also owns and operates the Millstone Unit 2
nuclear unit. The operating license for the Millstone Unit 3 nuclear unit
extends to November 25, 2045.
A substantial portion of MMWEC's plant investment and financing program
is an 11.6% ownership interest in the Seabrook Station nuclear generating
unit operated by NextEra Energy Seabrook, LLC (NextEra Sea
(formerly FPL Energy Seabrook LLC), the majority ow nd an indir
subsidiary of NextEra Energy Resources LL merly ergy LLC).
The operating license for Seabro tation xten o March 030. NextEra
Seabrook has submitted an ap lcatio toe end abrook Stat on
operating lice r dditi nal 0'Y ars.
urs nt th PPS s, t e M W Sea ro k ari Millstone Pr sect Partici-
nts e iable�r t r pro ortionatesha e f.t costs associated with
de om is Toni :the p nt , w c e eing funded through monthly
Pr jectit ings, A o the ro` t Participants are liable for their proportionate
s re, f t e un nsu osts of a nuclear incident that might be imposed
and the ' e-Anderson Act (Act). Originally enacted in 1957, the Act has
en renewed several times. In July 2005, as part of the Energy Policy Act
of 2005, Congress extended the Act until the end of 2025.
Reading Municipal Light Department has entered into PSAs and Power
Purchase Agreements (PPAs) with MMWEC. Under both the PSAs and
PPAs, the Department is required to make certain payments to MMWEC
payable solely from Department revenues. Under the PSAs, each Participant
is unconditionally obligated to make all payments due to MMWEC, whether
or not the Project(s) is completed or operating, and notwithstanding the
suspension or interruption of the output of the Project(s).
MMWEC is involved in various legal actions. In the opinion of MMWEC
management, the outcome of such actions will not have a material adverse
effect on the financial position of the company.
Seven municipal light departments that are Participants under PSAs with
MMWEC have submitted a demand for arbitration of a dispute relating to
charges under the PSAs. MMWEC cannot predict the outcome of the
arbitration demand, but in the opinion of MMWEC management, it will not
have a material adverse effect on the financial position of MMWEC.
25
After the July 1, 2010 principal payment, total capital expenditures for
MMWEC's Projects amounted to $ 1,574,094,000, of which $ 113,385,000
represents the amount associated with the Department's share of Project
Capability of the Projects in which it participates, although such amount is
not allocated to the Department. MMWEC's debt outstanding for the Projects
includes Power Supply System Revenue Bonds totaling $ 502,245,000, of
which $ 26,370,000 is associated with the Department's share of Project
Capability of the Projects in which it participates, although such amount is
not allocated to the Department. After the July 1, 2010 principal payment,
MMWEC's total future debt service requirement on outstanding bonds issued
for the Projects is $ 532,190,000, of which $ 26,829,000 is anticipated to be
billed to the Department in the future.
The estimated aggregate amount of Reading Municipal Light Department's
required payments under the PSAs and PPAs, exclusive of the Reserve and
Contingency Fund billings, to MMWEC at June 30, 2010 and es ' d f r
future years is shown below.
An osts
For years ended June 30, 2011 $ 4 00
201 ,000
D 20 3 702,000
2 14 154,000
15 3,189,000
01 -2019 5,453,000
Total $ 26,829,000
n addition, under the PSA's, the Department is required to pay to MMWEC
its share of the Operation and Maintenance (O&M) costs of the Projects in
which it participates. The Department's total O&M costs including debt
service under the PSAs were $ 14,350,000 and $ 16,070,000 for the years
ended June 30, 2010 and 2009, respectively.
19. Environmental Remediation
In August of 2009, during the Transformer Upgrade Project at Gaw Sub-
station, Poly Chlorinated Biphenyl (PCB) contaminated soil was discovered.
This contamination was traced to a capacitor bank lineup, located on the
south side of the Gaw Substation control house. Once utilized to stabilize
voltage, these capacitor banks were removed from the substation decades
prior to the project.
As of June 30, 2010, the cost for this cleanup has eclipsed $ 1.1 M. Additional
soil remediation costs for FY11 are expected to be $ 650,000. The soil
26
sampling, analysis and remediation of the area should be complete by
October 30, 2010.
Cleanup of the soil has been conducted by a Commonwealth of Massachu-
setts Licensed Site Professional (LSP) in concert with the USEPA and the
Massachusetts Department of Environmental Protection (MADEP) require-
ments. The RMLD has included in its rate structure a Hazardous Material
Charge of$ 0.001/kWh, which is designed to recover the Gaw Substation soil
remediation costs over three years.
20. Leases
Related Party Transaction - Property Sub-Lease
The Department is sub-leasing facilities to the Reading Massachusetts
Town Employees Federal Credit Union. The original sub-lTat
commenced in December 2000 and ended in November 2ree-
ment, which extended the lease through Nove 0on
December 1, 2005. An additional a endme t, efF 8,
extends the lease through Nov ber 0, 20 1. h owe
minimum rental i for the ye rs a ding une 30:
D011 ,712
201 630
of 1 $ 12,342
27
READING, MASSACHUSETTS MUNICIPAL LIGHT DEPARTMENT
SCHEDULE OF FUNDING PROGRESS
REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2010
(Unaudited)
Other Post-Employment Benefits
UAAL as
Actuarial a Percent-
Actuarial Accrued Unfunded age of
Actuarial Value of Liability AAL Fun Covered Covered
Valuation Assets (AAL) (UAAL) Ratio', ayrol Payroll
Date a) -a b-a /c
06/30/08 $ - $ 8,085,388 $ 8 5,388 00 N/A, N/A
See Independent Auditors' Report.
28
Reading Municipal Light Department
Energy Conservation Program
September 2010 Update
D
D
n
2
m
z
y
N
1
Topics .
• Existing Programs
• New Programs
9 Energy Conservation
Economic Analysis
• FYI I Initiatives
2
Existing Programs
• COMMERCIAL
— Commercial Lighting Program
• Updated 10 months ago
• New technology and rebate update in progress
— Commercial Audit Program
• Program update in progress
— Commercial Energy Initiative Rebate Program
• Focus on small-medium sized commercial customers
— Measurement and Verification Program
• Active and successful
3
ExistingPrograms
• RESIDENTIAL
— Time of Use program
— Appliance Rebate Program
• Adding smart power strips ($10 rebate)
— Renewable Energy Rebate Program
• No new customer projects
— Residential Energy Audit
• On hold until the new request for proposal (RFP) is complete
— Residential Energy Consultation
• Has replaced the Tier 2 Audit program until the new bid is
complete
4
New Programs
• COMMERCIAL RESIDENTIAL
— Demand Response (DR) — Library Energy Panel
— Online services
— Time of Use program
— Insulation rebate program
— Online Home Energy Use
Graph (Smart Grid)
— Smart Strip Rebate
Program
5
Energy Conservation Economic Analysis
,READING MUNI CIPI
AL GHT DEPARTMENT
6_0-,-N,-
(ENERGY - ATI L
!
ON EC_GNOMIC ANALYSIS
2003-2005 2006 2007 1 2008 2009 2010 2011 2012 2013 2014
;Residential Rebates
kW Saeed 98 100 155 210 225 334 11 0 0 0
Total Rebates 156 250 226 255 241 225
Rebates $15,300 $25,000 $35,000 $53,475 $54,250 $75,175 $14,875 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sub Total $15,300 $25,000 $35,000 $53,475 $54,250 $75,175 $14,875 $0 $0 $0
Commercial Lighting
kW Saved 63 332 68 266 700 202 0 0 0 0
Total Rebates 5 5 7 14 32 14
Rebates $14,443 $19,230 $14,327 $71,750 $124,000 $85,000 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sub Total $14,443 $19,230 $14,327 $71,750 $124,000 $85,000 $0 $0 $0 $0
Commercial Cons.Measures
kW Saved 0 0 0 0 0 195 532 0 0 0
Total Rebates 6 4
Rebates $0 $0 $0 $0 $0 $80,011 $102,000 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sub Total 0 0 0 0 0 80,011 102,000 0 0 0
!Total Rebate Program
Total kW Saved 161 5931 8151 1,291 2,2161 2,947 1 3,491 3,491 3,491 3,491
Cumulative Total Costs 29,743 73,973 1 123,3001 248,525 426,7751 666,961 1 783,836 1 783,836 783,836 783,836
Carrying Charges10% 10% 10% 10% 10% 10% 10% 10% 10% 0%1
........... . .. ...
RMLD's Cost of Renew.Cap. j $1.541 $1.041 $1.26 1 $1.60 I $1.60 j $1,89, $1.871 1.871 $1.87 1 $1.871
I j i I
For.Cap.Mkt.($/kW-Month) ; $3.671 $3.551 $3.431 $3.50 $2.951 4.351 3.591 2.781 2.531 2.521
T 1 2 974, 7,3971 12 330 24 853 42 678 66 696 78 384{ 78 384 78,384 78,314
Notal Capacity Costs ! _ _..._
_ _ _
FCM Costs $7,084 $25 225 $33,516 $54 242 I $78 463 $154,006 $150 433 $116 5341 $105,921 $105,572
...
!
SavingslCosts $4,110 $17,828. $21,186 $29,390 $35,786 $87,3101 $72,049 $38,150' $27,537 1 $27,188
1 _! _...... . --.
a
Net Present Value 1$1,007,227 1
6
Energy Conservation Economic Analysis
• Residential — Appliance Rebates
— FY03- Present 1 , 122 kW / $273,075
• Commercial Lighting
— FY05 — Present 1 ,631 kW/$328,750
• Commercial Cons. Measures
— FY09- Present 727 kW/$ 1821011
• Cumulative Costs Benefit
— 31481 kW $783,836 NPV $ 1 ,007,227
FYI I Initiatives
(Where does the RMLD want togo?)
• Residential Commercial
-Electric Vehicles -New custom projects currently
— Will the RMLD lead or in the works.
follow? -Update the Commercial
-Update the Residential Time of Lighting rebate program.
Use program
— Change hours and look for -Reduce the energy use in our
advantages building to a respectable level.
-Implement new items to the -Continue to add technologies
Tier 2 program as examples of good solutions
-Finalize and analyze the Smart to our customers.
Grid Pilot Program
-Add more ways to get detailed
information to our customers
(new meters, additional online
service)
8
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Reading Municipal Light Department
To: Vincent Cameron
From: Jared Carpenter
Date: September 23, 2010
Subject: RMLD's Energy Conservation Economic Analysis
The RMLD has residential and commercial efficiency programs. These programs
compensate RMLD customers for upgrading appliances and equipment, which meets
higher efficiency standards. In order to begin assessing the true value of the program the
attached sheet will help analyze the long-term use of our rebate programs.
The RMLD has completed a preliminary economic analysis of these programs.
The attached table analyzes the residential, commercial lighting and commercial
conservation measures. Line 1 represents the annual amounts of energy, in kW,the
RMLD customers have saved for upgrading various residential appliances for the period
2003 —present. The next line shows the number of residential rebates for each year.
Line 3 indicates the amount of rebate dollars that the RMLD residential customers
received for installing Energy Star appliances.
The second section of the table analyzes the Commercial lighting rebate program. The
first line of this section represents the amount of kW reduction achieved by upgrading
various commercial lighting projects. The period represents 2003 —present with a total
reduction of approximately 1,631 kW achieved through lighting upgrades. The following
line represents the annual number of commercial lighting rebates. The next line shows
the amount of dollars that the customers received for upgrading their lighting systems.
The third section of the table analyzes the Commercial Conservation custom rebate
program. The first line of this section represents the amount of kW reduction achieved
by upgrading various commercial projects. This program began in FY10 and allows
various municipal/commercial customers to work closely with the RMLD to achieve
energy efficiency and receive a rebate. The RMLD customers have been able to reduce
the kW peak in excess of 727 kW and receiving over$182,000 in rebates.
In total, it is estimated that as a result of RMLD's energy conservation and efficiency
programs, the RMLD has saved in excess of 3,491 kW with a total costs of rebates at
over$783,000. The RMLD has assumed a 10% carrying charge in order to determine the
effectiveness of these programs. The RMLD then calculated the cost of capacity saved
by dividing the total cost of the rebates times the carrying charge cost divided by the
amount of kW then divide by 12 to yield a$/kW-mth. These values are represented in
the line titled"RMLD's Cost of Renew. Cap." The value of these savings resulted in a
carry cost that ranged from $1.04/kW-mth to $1.89/kW-mth.
In order to determine the effectiveness of these programs, the RMLD then calculates
what the cost of not removing the kW peak values would have resulted in. Looking at the
Forward Capacity Market(FCM) costs and applying the kW reduction to determine the
dollar impact to accomplish this. Once the FCM costs have been calculated,you then
take the difference between the FCM Costs and the Total Capacity Costs to determine the
Savings/Costs. For the period 2003-present it is estimated that the RMLD saved in
excess of$267,659. In order to determine the value of the program in today's dollars,
you then need to calculate the Net Present Value (NPV) of the program. For the period
2003 —2024, assuming a discounted rate of 4%,the NPV was $1,007,227.
Jared Carpenter
Energy Efficiency Engineer
Reading Municipal Light Department
230 Ash Street
Reading, MA 01 867
ph:1-781-942-641 Z
fax: 1-781-944-6654
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ATTACHMENT 3
Dt: September 23, 2010
To: RMLB, Vincent F. Cameron, Jr., Jeanne Foti
Fr: Bob Fournier ���� �
Sj: August 31, 2010 Report s�
The results for the first two months ending August 31, 2010, for the fiscal year
2011 will be summarized in the following paragraphs. August showed a negative change
in net assets. The full financial impact of the GAW Substation soil remediation is
ongoing.
1) Change in Net Assets or Net Loss: (Page 3A)
For the month of August, the net loss or the negative change in net assets was
$227,105, bringing the year to date net loss to $557,158. The year to date
budgeted net loss was $440,235, the difference being $116,923 or 26.5%. Year to
date fuel expenses exceeded fuel revenues by $1,660,071. Year to date energy
conservation revenues exceeded energy conservation expenses by$45,672.
August GAW soil remediation expenses totalled $378,524.00, making the total
cost to date $1,517,828.
2) Revenues: (Page 11B)
Year to date base revenues were over budget by$564,338 or 7.5%. Actual base
revenues were $8.0 million compared to the budgeted amount of$7.4 million.
3) Expenses: (Page 12A)
*Year to date purchased power base expense was $41,825 or .8% under budget.
Actual purchased power base costs were $5.0 million compared to the budgeted
amount of$5.0 million.
*-Year to date operating and maintenance (O&M) expenses combined were under
budget by$19,420 or .9%. Actual O&M expenses were $2.1 million compared to
the budgeted amount of$2.1 million. The major expense that was over budget
was maintenance of line transformers ($127,550).
*Depreciation expense and voluntary payments to the Towns were on budget.
4) Cash: (Page 9)
*Operating Fund balance was at $7,682,879.
*Capital Funds balance was at $4,762,688.
*Rate Stabilization Fund balance was at $5,375,288.
''`Deferred Fuel Fund balance was at $666,040.
''Energy Conservation balance was at $354,555.
5) General Information:
Year to date kwh sales (Page 5) were 1.1.8%, or 14.7 million kwh, ahead of last
year's figure.
6) Budget Variance:
Cumulatively, the five divisions were under budget by $27,776 or .8%.
FINANCIAL REPORT
AUGUST 31 , 2010
ISSUE DATE: SEPTEMBER 23, 2010
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
BUSINESS-TYPE PROPRIETARY FUND
STATEMENT OF NET ASSETS
8131/10
PREVIOUS YEAR CURRENT YEAR
ASSETS
CURRENT
UNRESTRICTED CASH (SCH A P.9) 7,873,821.30 7,685,879.80
RESTRICTED CASH (SCH A P.9) 12,736,991.43 15,614,177.24
RESTRICTED INVESTMENTS (SCH A P.9) 4,400,000.00 -
RECEIVABLES, NET (SCH B P.10) 8,326,389.75 8,109,396.22
PREPAID EXPENSES (SCH B P.10) 1,514,729.88 1,725,728.75
INVENTORY 1,538,498.26 1,501,824.97
TOTAL CURRENT ASSETS 36,390,430.62 34,637,006.98
NONCURRENT
INVESTMENT IN ASSOCIATED CO (SCH C P.2) 122,391.17 97,690.11
CAPITAL ASSETS, NET (SCH C P.2) 64,609,984.25 66,981,057.40
OTHER ASSETS (SCH C P.2) 15,744.34 14,523.70
TOTAL NONCURRENT ASSETS 64,748,119.76 67,093,271.21
TOTAL ASSETS 101,138,550.38 101,730,278.19
LIABILITIES
CURRENT
ACCOUNTS PAYABLE 8,304,902.86 7,450,121.17
CUSTOMER DEPOSITS 495,061.98 501,190.45
CUSTOMER ADVANCES FOR CONSTRUCTION 705,216.89 339,689.00
ACCRUED LIABILITIES 503,324.14 156,538.26
TOTAL CURRENT LIABILITIES 10,008,505.87 8,447,538.88
NONCURRENT
ACCRUED EMPLOYEE COMPENSATED ABSENCES 2,873,114.33 3,020,032.75
TOTAL NONCURRENT LIABILITIES 2,873,114.33 3,020,032.75
TOTAL LIABILITIES 12,881,620.20 11,467,571.63
NET ASSETS
INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT 64,609,984.25 66,981,057.40
RESTRICTED FOR DEPRECIATION FUND (P.9) 4,969,484.55 4,762,688.64
UNRESTRICTED 18,677,461.38 18,518,960.52
TOTAL NET ASSETS (P.3) 88,256,930.18 90,262,706.56
TOTAL LIABILITIES AND NET ASSETS 101,138,550.38 101,730,278.19
(1)
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
NONCURRENT ASSET SCHEDULE
8/31/10
SCHEDULE C
PREVIOUS YEAR CURRENT YEAR
SCHEDULE OF INVESTMENTS IN ASSOCIATED COMPANIES
NEW ENGLAND HYDRO ELECTRIC 46,153.24 36,244.74
NEW ENGLAND HYDRO TRANSMISSION 76,237.93 61,445.37
TOTAL INVESTMENTS IN ASSOCIATED COMPANIES 122,391.17 97,690.11
SCHEDULE OF CAPITAL ASSETS
LAND 1,265,842.23 1,265,842.23
STRUCTURES AND IMPROVEMENTS 6,997,417.80 6,748,734.96
EQUIPMENT AND FURNISHINGS 11,612,025.79 12,519,024.99
INFRASTRUCTURE 44,734,698.43 46,447,455.22
TOTAL UTILITY PLANT 64,609,984.25 66,981,057.40
SCHEDULE OF OTHER ASSETS
PURCHASED POWER WORKING CAPITAL 14,523.70 14,523.70
UNAMORTIZED DEBT EXPENSE 1,220.64 0.00
TOTAL OTHER ASSETS 15,744.34 14,523.70
TOTAL NONCURRENT ASSETS 64,748,119.76 67,093,271.21
(2)
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
BUSINESS-TYPE PROPRIETARY FUND
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
8/31/10
MONTH MONTH LAST YEAR CURRENT YEAR YTD
LAST YEAR CURRENT YEAR TO DATE TO DATE CHANGE
OPERATING REVENUES: (SCH D P.11)
BASE REVENUE 3,711,893.97 3,934,767.36 7,132,571.09 8,024,393.12 12.500
FUEL REVENUE 4,269,717.20 3,658,721.48 8,017,794.29 7,195,340.38 -10.260
PURCHASED POWER CAPACITY 122,895.74 425,695.76 329,710.92 947,064.82 187.24%
FORFEITED DISCOUNTS 75,272.80 116,194.56 129,284.88 197,779.32 52.98%
ENERGY CONSERVATION REVENUE 50,545.40 52,408.78 99,904.60 109,125.09 9.23%
PASNY CREDIT (35,903.32) (49,929.96) (39,343.48) (148,431.70) 277.27%
TOTAL OPERATING REVENUES 8,194,421.79 8,137,857.98 15,669,922.30 16,325,271.03 4.18%
OPERATING EXPENSES: (SCH E P.12)
PURCHASED POWER BASE 2,680,493.12 2,492,886.25 4,946,373.91 4,966,750.11 0.41%
PURCHASED POWER FUEL 4,051,360.93 4,151,871.47 8,122,599.25 8,706,980.03 7.19%
OPERATING 610,053.12 600,970.55 1,075,517.24 1,339,864.21 24.58
MAINTENANCE 152,250.56 569,416.51 220,714.35 774,147.76 250.75%
DEPRECIATION 280,105.78 287,729.05 560,211.56 575,458.10 2.72%
VOLUNTARY PAYMENTS TO TOWNS 104,500.00 110,000.00 209,000.00 220,000.00 5.26%
TOTAL OPERATING EXPENSES 7,878,763.51 8,212,873.83 15,134,416.31 16,583,200.21 9.5794
OPERATING INCOME 315,658.28 (75,015.85) 535,505.99 (257,929.18) -148.17%
'RATING REVENUES (EXPENSES)
`cuNTRIBUTIONS IN AID OF CONST 1,370.80 4,765.20 5,212.93 9.,901.20 89.94%
RETURN ON INVESTMENT TO READING (182,220.00) (180,990.00) (364,445.00) (361,980.00) -0.689'.
INTEREST INCOME 6,161.03 16,116.55 32,409.25 43,477.56 34.15%
INTEREST EXPENSE (1,276.73) (1,019.19) (4,802.41) (2,036.31) -57.60%
OTHER (MDSE AND AMORT) 4,112.89 9,037.68 13,333.30 11,408.68 -14.43%
TOTAL NONOPERATING REV (EXP) (171,852.01) (152,089.76) (318,291.93) (299,228.87) -5.99%
CHANGE IN NET ASSETS 143,806.27 (227,105.61) 217,214.06 (557,158.05) -356.50%
NET ASSETS AT BEGINNING OF YEAR 88,039,716.12 90,819,864.61 3.16%
NET ASSETS AT END OF AUGUST 88,256,930.18 90.,262,706.56 2.27%
(3)
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
BUSINESS-TYPE PROPRIETARY FUND
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
8/31/10
ACTUAL BUDGET
YEAR TO DATE YEAR TO DATE VARIANCE* CHANGE
OPERATING REVENUES: (SCH F P.11B)
BASE REVENUE 8,024,393.12 7,460,055.00 564,338.12 7.56%
FUEL REVENUE 7,195,340.38 7,499,364.00 (304,023.62) -4.05%
PURCHASED POWER CAPACITY 947,064.82 1,006,088.00 (59,023.18) -5.87%
FORFEITED DISCOUNTS 197,779.32 164,121.00 33,658.32 20.51%
ENERGY CONSERVATION REVENUE 109,125.09 98,853.00 10,272.09 10.39%
PASNY CREDIT (148,431.70) (100,000.00) (48,431.70) 48.43%
TOTAL OPERATING REVENUES 16,325,271.03 16,128,481.00 196,790.03 1.22%
OPERATING EXPENSES: (SCH G P.12A)
PURCHASED POWER BASE 4,966,750.11 5,008,576.00 (41,825.89) -0.84%
PURCHASED POWER FUEL 8,706,980.03 8,453,874.00 253,106.03 2.99%
OPERATING 1,339,864.21 1,439,432.00 (99,567.79) -6.92%
MAINTENANCE 774,147.76 694,000.00 80,147.76 11.55%
DEPRECIATION 575,458.10 583,334.00 (7,875.90) -1.35%
VOLUNTARY PAYMENTS TO TOWNS 220,000.00 220,000.00 0.00 0.00%
TOTAL OPERATING EXPENSES 16,583,200.21 16,399,216.00 183,984.21 1.12%
OPERATING INCOME (257,929.18) (270,735.00) 12,805.82 -4.73%
NONOPERATING REVENUES (EXPENSES)
CONTRIBUTIONS IN AID OF CONST 9,901.20 100,000.00 (90,098.80) -90.10%
RETURN ON INVESTMENT TO READING (361,980.00) (362,500.00) 520.00 -0,14%
INTEREST INCOME 43,477.56 75,000.00 (31,522.44) -42.03%
INTEREST EXPENSE (2,036.31) (2,000.00) (36.31) 1.82%
OTHER (MDSE AND ANORT) 11,408.68 20,000.00 (8,591.32) -42.96%
TOTAL NONOPERATING REV (EXP) (299,228.87) (169,500.00) (129,728.87) 76.54%
CHANGE IN NET ASSETS (557,158.05) (440,235.00) (116,923.05) 26.56
NET ASSETS AT BEGINNING OF YEAR 90,819,864.61 88,039,716.12 2,780,148.49 3.16%
NET ASSETS AT END OF AUGUST 90,262,706.56 87,599,481.12 2,663,225.44 3.04%
* ( ) = ACTUAL UNDER BUDGET
(3A)
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
RECONCILIATION OF CAPITAL FUNDS
8/31/10
SOURCE OF CAPITAL FUNDS:
DEPRECIATION FUND BALANCE 7/1/10 4,801,693.77
CONSTRUCTION FUND BALANCE 7/1/10 0.00
INTEREST ON DEPRECIATION FUND FY 11 3,140.72
DEPRECIATION TRANSFER FY 11 575,458.10
FORCED ACCOUNTS REIMBURSEMENT 0.00
GAW SUBSTATION (FY 11) 57,412.00
TOTAL SOURCE OF CAPITAL FUNDS 5,437,704.59
USE OF CAPITAL FUNDS:
PAID ADDITIONS TO PLANT THRU AUGUST 617,603.95
PAID ADDITIONS TO GAW THRU AUGUST 57,412.00
TOTAL USE OF CAPITAL FUNDS 675,015.95
GENERAL LEDGER CAPITAL FUNDS BALANCE 8/31/10 4,762,688.64
PAID ADDITIONS TO GAW FROM FY 11 57,412.00
PAID ADDITIONS TO GAW FROM FY 10 1,372,876.00
PAID ADDITIONS TO GAW FROM FY 09 3,136,764.00
PAID ADDITIONS TO GAW FROM FY 08 1,895,975.00
TOTAL 6,463,027.00
(4)
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
SALES OF KILOWATT HOURS
8/31/10
MONTH MONTH LAST YEAR CURRENT YEAR YTD
SALES OF ELECTRICITY: LAST YEAR CURRENT YEAR TO DATE TO DATE CHANGE
RESIDENTIAL SALES 25,461,644 28,850,386 46,933,996 57,735,656 23.01%
COMM. AND INDUSTRIAL SALES 36,404,770 36,630,923 73,474,310 77,270,947 5.17%
PRIVATE STREET LIGHTING 70,020 70,898 142,069 142,232 0.11%
TOTAL PRIVATE CONSUMERS 61,936,434 65,552,207 120,550,375 135,148,835 12.11%
MUNICIPAL SALES:
STREET LIGHTING 237,183 238,701 474,366 477,554 0.67%
MUNICIPAL BUILDINGS 827,525 792,266 1,658,717 1,668,814 0.61%
TOTAL MUNICIPAL CONSUMERS 1,064,708 1,030,967 2,133,083 2,146,368 0.62%
SALES FOR RESALE 348,515 349,576 620,719 766,682 23.52%
SCHOOL 877,368 822,236 1,867,579 1,870,028 0.13%
TOTAL KILOWATT HOURS SOLD 64,227,025 67,754,986 1251171,756 139,931,913 11.79%
(5)
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
KILOWATT HOURS SOLD BY TOWN
8/31/10
TOTAL READING LYNNFIELD NO.READING WILMINGTON
MONTH
RESIDENTIAL 28,850,386 9,031,113 4,173,809 7,519,814 8,125,650
COMM & IND 36,630,923 4,522,257 312,142 5,540,460 26,256,064
PVT ST LIGHTS 70,898 13,867 1,360 20,878 34,793
PUB ST LIGHTS 238,701 80,436 32,437 39,657 86,171
MUNI BLDGS 792,266 189,013 147,624 171,340 284,289
SALES/RESALE 349,576 349,576 0 0 0
SCHOOL 822,236 301,494 185,669 95,400 239,673
TOTAL 67,754,986 14,487,756 4,853,041 13,387,549 35,026,640
YEAR TO DATE
RESIDENTIAL 57,735,656 17,364,659 8,957,644 13,139,600 18,273,753
COMM & IND 77,270,947 9,604,314 629,891 11,794,291 55,242,451
PVT ST LIGHTS 142,232 27,734 2,720 41,736 70,042
PUB ST LIGHTS 477,554 160,872 65,026 79,314 172,342
MUNI BLDGS 1,668,814 407,451 304,388 369,902 587,073
SALES/RESALE 766,682 766,682 0 0 0
SCHOOL 1,870,028 700,014 428,746 241,000 500,268
TOTAL 139,931,913 29,031,726 1D,388,415 25,665,843 74,845,929
LAST YEAR
TO DATE
RESIDENTIAL 46,933,996 13,725,495 7,609,527 10,231,147 15,367;827
COMM & IND 73,474,310 9,143,383 584,259 11,236,225 52,510,443
PVT ST LIGHTS 142,069 28,698 2,720 41,642 69,009
PUB ST LIGHTS 474,366 157,262 65,702 79,376 172,026
MUNI BLDGS 1,658,717 407,216 281,635 328,293 641,573
SALES/RESALE 620,719 620,719 0 0 0
SCHOOL 1,867.,579 742,517 414,098 211,920 499,044
TOTAL 125,171,756 24,825,290 8,957,941 22,128,603 69,259,922
KILOWATT HOURS SOLD TO TOTAL
TOTAL READING LYNNFIELD NO.READING WILMINGTON
MONTH
RESIDENTIAL 42.58% 13.33% 6.16% 11.10% 11.99%
COMM & IND 54.06% 6.67% 0.46% 8.18% 38.75%
PVT ST LIGHTS 0.10% 0.02% 0.00% 0.03% 0.05%
PUB ST LIGHTS 0.36% 0.12% 0.05% 0.06% 0.13%
MUNI BLDGS 1.17% 0.28% 0.22% 0.25% 0.42%
SALES/RESALE 0.52% 0.52% 0.0091. 0.00% 0.00%
SCHOOL 1.21% 0.44% 0.27% 0.14% 0.36%
TOTAL 100.00% 21.38% 7.165. 19.769, 51.70%
YEAR TO DATE
RESIDENTIAL 41.26% 12.41% 6.40% 9.39% 13.06%
COMM & IND 55.22% 6.86% 0.45% 8.43% 39.48%
PVT ST LIGHTS 0.10% 0.02% 0.00% 0.03% 0.05%
PUB ST LIGHTS 0.34% 0.11% 0.05% 0.06% 0.12%
MUNI BLDGS 1.19% 0.29% 0.22% 0.26°% 0.42%
SALES/RESALE 0.55% 0.55% 0.00% 0.00% 0.00%
SCHOOL 1.34% 0.50% 0.31% 0.17% 0.36%
TOTAL 100.00% 20.75% 7.42% 18.34% 53.49%
LAST YEAR
TO DATE
RESIDENTIAL 37.50% 10.97% 6.08% 8.17% 12.28%
COMM & IND 58.70% 7.30% 0.47% 8.98% 41.95%
PVT ST LIGHTS 0.11% 0.02% 0.00% 0.03% 0.06%
PUB ST LIGHTS 0.38% 0.13% 0.05% 0.06% 0.14%
MUNI BLDGS 1.32% 0.33% 0.22% 0.26% 0.51%
SALES/RESALE 0.50% 0.50% 0.00% 0.00% 0.00%
SCHOOL 1.49% 0.59% 0.33% 0.17% 0.40%
TOTAL 100.00% 19.84% 7.15% 17.67% 55.34%
(6)
TOWN OF EEAOING. NASSAC SETTS
VRNICIPAL LIGST DZPARTMENT
FORNOLA INCOME
8/31/10
TOTAL OPERATING REVENGES (P.3) 16,325.271.03
ADD:
POLE RENTAL 13,408.68
INTEREST INCOME ON COSTOMER DEPOSITS 317.00
LESS:
OPERATING EXPENSES (P.3) (16,583,200.21)
COSTOMEA DEPOSIT INTEREST =PENSE (2,036.31)
FORNGLA INCOME (LOSS) (248,239.811
OI
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
GENERAL STATISTICS
8/31/10
MONTH OF MONTH OF % CHANGE YEAR THRU
AUG 2009 AUG 2010 2009 2010 AUG 2009 AUG 2010
SALE OF KWH (P.5) 64,227,025 67,754,986 -9.91% 11.79% 125,171,756 139,931,913
KWH PURCHASED 72,835,439 71,625,136 -3.42% 9.67% 136,465,072 149,658,996
AVE BASE COST PER KWH 0.036802 0.034805 13.24% -8.44% 0.036246 0.033187
AVE BASE SALE PER KWH 0.057793 0.060359 8.99% 0.64% 0.056982 0.057345
AVE COST PER KWH 0.092426 0.092771 -24.78% -4.60% 0.095768 0.091366
AVE SALE PER KWH 0.124272 0.112556 -15.81% -10.14% 0.121037 0.108765
FUEL CHARGE REVENUE (P.3) 4,269,717.20 3,536,618.90 -36.92% -10.26% 8,017,794.29 7,195,340.38
LOAD FACTOR 64.06% 61.47%
13EAK LOAD 155,759 159,614
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TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
SCHEDULE OF CASH AND INVESTMENTS
8/31/10
SCHEDULE A
PREVIOUS YEAR CURRENT YEAR
UNRESTRICTED CASH
CASH - OPERATING FUND 7,870,821.30 7,682,879.80
CASH - PETTY CASH 3,000.00 3,000.00
TOTAL UNRESTRICTED CASH 7,873,821.30 7,685,879.80
RESTRICTED CASH
CASH - DEPRECIATION FUND 4,969,484.55 4,762,688.64
CASH - CONSTRUCTION FUND 592,214.62 0.00
CASH - TOWN PAYMENT 573,450.00 582,500.00
CASH - BOND PAYMENTS 562,000.00 0.00
CASH - DEFERRED FUEL RESERVE 1,595,245.81 666,040.74
CASH - RATE STABILIZATION FUND 2,355,777.55 5,375,288.04
CASH - UNCOLLECTIBLE ACCTS RESERVE 28,988.15 200,000.00
CASH - SICK LEAVE BENEFITS 1,379,517.05 3,021,914.21
CASH - INSURANCE RESERVE 35,251.72 0.00
CASH - HAZARD WASTE RESERVE 150,000.00 150,000.00
CASH - CUSTOMER DEPOSITS 495,061.98 501,190.45
CASH - ENERGY CONSERVATION 0.00 354,555.16
TOTAL RESTRICTED CASH 12,736,991.43 15,614,177.24
RESTRICTED INVESTMENTS
RATE STABILIZATION * 2,900,000.00 0.00
SICK LEAVE BENEFITS ** 1,500,000.00 0.00
TOTAL RESTRICTED INVESTMENTS 4,400,000.00 0.00
TOTAL CASH BALANCE 25,010,812.73 23,300,057.04
AUG 2009
* FED HOME LOAN MTG CORP 1,400,000.00; DTD 05/08/08; INT 4.00%; MATURITY 11/15/13
* FED HOME LOAN MTG CORP 1,500,000.00; DTD 01/23/09; INT 2.0091.; MATURITY 01/15/13
** FED HOME LOAN MTG CORP 500,000.00; DTD 01/23/09; INT 2.009.; MATURITY 01/15/13
** FED HOME LOAN MTG CORP 500,000.00; DTD 01/25/08; INT 4.25%; MATURITY 01/15/15
** FED NATIONAL MORT ASSN 500,000.00; DTD 11/13/07; INT 5.25%; MATURITY 11/13/17
(9)
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
SCHEDULE OF ACCOUNTS RECEIVABLE
8/31/10
SCHEDULE B
PREVIOUS YEAR CURRENT YEAR
SCHEDULE OF ACCOUNTS RECEIVABLE
RESIDENTIAL AND COMMERCIAL 4,263,388.63 4,094,447.71
ACCOUNTS RECEIVABLE - OTHER 227,623.91 458,434.02
ACCOUNTS RECEIVABLE - LIENS 111,215.75 54,049.80
ACCOUNTS RECEIVABLE - EMPLOYEE ADVANCES 1,067.16 1,067.16
SALES DISCOUNT LIABILITY (243,738.33) (325,446.55)
RESERVE FOR UNCOLLECTIBLE ACCOUNTS (206,111.95) (228,315.03)
TOTAL ACCOUNTS RECEIVABLE BILLED 4,153,445.17 4,054,237.11
UNBILLED ACCOUNTS RECEIVABLE 4,172,944.58 4,055,159.11
TOTAL ACCOUNTS RECEIVABLE, NET 8,326,389.75 8,109,396.22
SCHEDULE OF PREPAYMENTS
PREPAID INSURANCE 950,936.32 962,077.53
PREPAYMENT PURCHASED POWER 239,257.90 210,123.57
PREPAYMENT PASNY 324,535.66 247,206.63
PREPAYMENT WATSON 0.00 306,321.02
TOTAL PREPAYMENT 1,514,729.88 1,725,728.75
ACCOUNTS RECEIVABLE AGING AUGUST 2010.
RESIDENTIAL AND COMMERCIAL 4,094,447.71
LESS: SALES DISCOUNT LIABILITY (325,446.55)
GENERAL LEDGER BALANCE 3,769,001.16
CURRENT 3,205,493.52 85.05%
30 DAYS 411,917.83 10.93%
60 DAYS 76,785.86 2.04%
90 DAYS 13,706.96 0.36%
OVER 90 DAYS 61,096.99 1.62%
TOTAL 3,769,001.16 100.00%
(10)
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
SCHEDULE OF OPERATING REVENUE
8/31/10
SCHEDULE D
MONTH MONTH LAST YEAR CURRENT YEAR YTD %
SALES OF ELECTRICITY: LAST YEAR CURRENT YEAR. TO DATE TO DATE CHANGE
RESIDENTIAL SALES 3,436,438.89 3,511,565.35 6,234,551.81 6,879,969.30 10.35%
COMM AND INDUSTRIAL SALES 4,227,942.75 3,798,842.54 8,289,161.97 7,747,000.25 —6.54%
PRIVATE STREET LIGHTING 10,482.33 9,744.90 20,896.97 19,186.66 —8.18%
TOTAL PRIVATE CONSUMERS 7,674,863.97 7,320,152.79 14,544,610.75 14,646,156.21 0.70%
MUNICIPAL, SALES:
STREET LIGHTING 47,061.26 44,179.65 92,900.83 87,161.49 —6.18%
MUNICIPAL BUILDINGS 103,234.83 89,579.98 201,454.33 182,613.85 —9.35%
TOTAL MUNICIPAL CONSUMERS 150,296.09 133,759.63 294,355.16 269,775.34 —8.359,o
SALES FOR RESALE 44,937.37 40,549.79 78,646.37 86,795.19 10.36%
SCHOOL 111,513.74 99,026.63 232,753.10 217,006.76 —6.77%
SUB—TOTAL 7,981,611.17 7,593,488.84 15,150,365.38 15,219,733.50 0.469.
FORFEITED DISCOUNTS 75,272.80 116,194.56 129,284.88 197,779.32 52.98%
PURCHASED POWER CAPACITY 122,895.74 425,695.76 329,710.92 947,064.82 187.24%
ENERGY CONSERVATION — RESIDENTIAL 12,736.28 14,431.42 23,479.02 28,880.32 23.00%
ENERGY CONSERVATION — COMMERCIAL 37,809.12 37,977.36 76,425.58 80,244.77 5.00%
PASNY CREDIT (35,903.32) (49,929.96) (39,343.48) (148,431.70) 277.27%
TOTAL REVENUE 8,194,421.79 8,137,857.98 15,669,922.30 16,325,271.03 4.18%
(11)
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
SCHEDULE OF OPERATING REVENUE BY TOWN
8/31/10
TOTAL READING LYNNFIELD NO.READING WILMINGTON
MONTH
RESIDENTIAL 3,511,565.35 1,101,687.87 506,166.68 912,870.63 990,840.17
INDUS/MUNI BLDG 3,888,422.52 511,955.31 50,389.55 607,108.89 2,718,968.77
PUB.ST.LIGHTS 44,179.65 15,503.86 5,359.74 7,270.14 16,045.91
PRV.ST.LIGHTS 9,744.90 1,855.68 186.33 3,007.03 4,695.86
CO-OP RESALE 40,549.79 40,549.79 0.00 0.00 0.00
SCHOOL 99,026.63 36,304.87 21,694.23 12,161.22 28,866.31
TOTAL 7,593,488.84 1,707,857.38 583,796.53 1,542,417.91 3,759,417.02
THIS YEAR TO DATE
RESIDENTIAL 6,879,969.30 2,077,554.42 1,060,781.07 1,570,451.63 2,171,182.18
INDUS/MUNI BLDG 7,929,614.10 1,050,346.27 99,756.14 1,246,774.85 5,532,736.84
PUB.ST.LIGHTS 87,161.49 30,597.75 10,572.92 14,338.18 31,652.64
PRV.ST.LIGHTS 19,186.66 3,640.78 365.71 5,902.21 9,277.96
CO-OP RESALE 86,795.19 86,795.19 0.00 0.00 0.00
SCHOOL 217,006.76 80,929.51 48,468.37 28,813.81 58,795.07
TOTAL 15,219,733.50 3,329,863.92 1,219,944.19 2,866,280.69 7,803,644.70
LAST YEAR TO DATE
RESIDENTIAL 6,234,551.81 1,827,943.22 1,004,192.08 1,366,603.12 2,035,813.39
INDUS/MUNI BLDG 8,490,616.30 1,124,177.29 105,018.53 1,320,813.11 5,940,607.37
PUB.ST.LIGHTS 92,900.83 32,172.02 11,504.29 15,414.'49 33,810.03
PRV.ST.LIGHTS 20,896.97 4,133.61 401.33 6,411.78 9,950.25
CO-OP RESALE 78,646.37 78,646.37 0.00 0.00 0.00
SCHOOL 232,753.10 91,849.96 50,208.20 27,888.72 62,806.22 ,
TOTAL 15,150,365.38 3,158,922.47 1,171,324.43 2,737,131.22 8,082,987.26``_
PERCENTAGE OF OPERATING INCOME TO TOTAL
TOTAL READING LYNNFIELD NO.READING WILMINGTON
MONTH
RESIDENTIAL 46.25% 14.51% 6.67% 12.02% 13.05%
INDUS/MUNI BLDG 51.21% 6.74% 0.66% 8.00% 35.81%
PUB.ST.LIGHTS 0.58% 0.20% 0.07% 0.10% 0.21%
PRV.ST.LIGHTS 0.13% 0.02% 0.00% 0.04% 0.07%
CO-OP RESALE 0.53% 0.53% 0.0096 0.00% 0.00
SCHOOL 1.30% 0.48% 0.29% 0.16% 0.37%
TOTAL 100.00% 22.48% 7.6991. 20.32% 49.51%
THIS YEAR TO DATE
RESIDENTIAL 45.20% 13.65% 6.97% 10.32% 14.26%
INDUS/MUNI BLDG 52.10% 6.90% 0.66% 8.19% 36.35%
PUB.ST.LIGHTS 0.57% 0.20% 0.07% 0.09% 0.21%
PRV.ST.LIGHTS 0.13% 0.02% 0.00% 0.04% 0.07%
CO-OP RESALE 0.57% 0.57% 0.00% 0.00% 0.00%
SCHOOL 1.43% 0.535. 0.32% 0.19% 0.39%
TOTAL 100.00% 21.87% 8.02% 18.83% 51.28%
LAST YEAR TO DATE
RESIDENTIAL 41.15% 12.07% 6.63% 9.02% 13.43%
INDUS/MUNI BLDG 56.04% 7.42% 0.69% 8.7251. 39.21%
PUB.ST.LIGHTS 0.61% 0.21% 0.08% 0.10% 0.22%;-
PRV.ST.LIGHTS 0.14% 0.03% 0.00% 0.04% 0.07,
CO-OP RESALE 0.52% 0.52% 0.00% 0.00% 0.00$L
SCHOOL 1.54% 0.61% 0.339. 0.18% 0.42%
TOTAL 100.00% 20.86% 7.73% 18.06% 53.3591.
(1]A)
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
BUDGETED REVENUE VARIANCE REPORT
8/31/10
SCHEDULE F
ACTUAL BUDGET
YEAR TO DATE YEAR TO DATE VARIANCE * CHANGE
SALES OF ELECTRICITY:
RESIDENTIAL 3,906,762.74 3,351,598.00 555,164.74 16.56%
COMM AND INDUSTRIAL SALES
PRIVATE STREET LIGHTING 3,886,318.47 3,858,494.00 27,824.47 0.72%
MUNICIPAL BUILDINGS
PUBLIC STREET LIGHTING 62,567.82 89,656.00 (27,088.18) -30.21%
SALES FOR RESALE 47,479.89 45,297.00 2,182.89 4.82%
SCHOOL 121,264.20 115,010.00 6,254.20 5.44%
TOTAL BASE SALES 8,024,393.12 7,460,055.00 564,338.12 7.56%
TOTAL FUEL SALES 7,195,340.38 7,499,364.00 (304,023.62) -4.05%
TOTAL OPERATING REVENUE 15,219,733.50 14,959,419.00 260,314.50 1.74%
FORFEITED DISCOUNTS 197,779.32 164,121.00 33,658.32 20.51%
PURCHASED POWER CAPACITY 947,064.82 1,006,088.00 (59,023.18) -5.87%
ENERGY CONSERVATION - RESIDENTIAL 28,880.32 22,333.00 6,547.32 29.32%
ENERGY CONSERVATION - COMMERCIAL 80,244.77 76,520.00 3,724.77 4.87%
PASNY CREDIT (148,431.70) (100,000.00) (48,431.70) 48.43%
TOTAL OPERATING REVENUES 16,325,271.03 16,128,481.00 196,790.03 1.22%
* ( ) = ACTUAL UNDER BUDGET
(1.1B)
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
SCHEDULE OF OPERATING EXPENSES
8/31/10 e
SCHEDULE E -
MONTH MONTH LAST YEAR CURRENT YEAR YTD
OPERATION EXPENSES: LAST YEAR CURRENT YEAR TO DATE TO DATE CHANGE
PURCHASED POWER BASE EXPENSE 2,680,493.12 2,492,886.25 4,946,373.91 4,966,750.11 0.41%
OPERATION SUPER AND ENGIN-TRANS 0.00 0.00 0.00 0.00 0.00%
OPERATION SUP AND ENGINEERING EXP 32,454.89 31,125.92 48,987.56 76,275.49 55.70%
STATION SUP LABOR AND MISC 375.58 8,229.53 751.16 18,234.52 2327.51%
LINE MISC LABOR AND EXPENSE 55,933.48 50,705.66 106,942.56 102,621.20 -4.04%
STATION LABOR AND EXPENSE 42,493.56 35,039.36 74,311.39 73,563.14 -1.01%
STREET LIGHTING EXPENSE 2,415.96 4,212.93 5,014.67 7,203.07 43.64%
METER EXPENSE 29,784.99 25,852.63 50,301.61 48,330.64 -3.92%
MISC DISTRIBUTION EXPENSE 26,322.31 28,683.58 47,388.69 53,335.64 12.55%
METER READING LABOR & EXPENSE 7,032.40 6,059.26 16,868.05 16,091.98 -4.60%
ACCT & COLL LABOR & EXPENSE 129,745.86 81,830.38 214,713.98 183,345.54 -14.61%
UNCOLLECTIBLE ACCOUNTS 12,500.00 15,000.00 25,000.00 30,000.00 20.00%
ENERGY AUDIT EXPENSE 38,883.43 33,841.05 65,737.81 74,347.85 13.10%
ADMIN & GEN SALARIES 66,146.25 52,894.91 115,079.53 113,231.53 -1.61%
OFFICE SUPPLIES & EXPENSE 21,749.66 26,438.35 25,058.50 45,547.15 81.76%
OUTSIDE SERVICES 9,480.95 14,714.11 9,480.95 17,531.88 84.92%
PROPERTY INSURANCE 31,019.91 31,201.88 62,039.82 61,833.76 -0.33%
INJURIES AND DAMAGES 3,059.64 3,547.70 6,123.29 7,928.03 29.47%
EMPLOYEES PENSIONS & BENEFITS 57,787.22 99,822.20 121,291.42 294,914.26 143.15%
MISC GENERAL EXPENSE 11,863.15 17,557.68 21,196.14 24,520.88 15.69%
RENT EXPENSE 13,968.28 14,109.63 27,413.91 27,555.26 0.52%
ENERGY CONSERVATION 17,035.60 20,103.79 31,816.20 63,452.39 99.43%
TOTAL OPERATION EXPENSES 610 053.12 600 970.55 1,075,517.24 1 339 864 21 24.58%
MAINTENANCE EXPENSES:
MAINT OF TRANSMISSION PLANT 227.08 227.08 454.16 454.16 0.00%
MAINT OF STRUCT AND EQUIPMT 7,763.22 10,273.72 3,322.05 18,223.56 448.560
MAINT OF LINES - OR 71,031.97 90,491.03 100,789.75 182,937.43 81.50%
MAINT OF LINES - UG 12,706.69 2,304.99 13,747.66 24,706.62 79.72%
MAINT OF LINE TRANSFORMERS ** 3,740.30 397,411.15 10,836.94 446,884.34 4023.71%
MAINT OF ST IT & SIG SYSTEM (21.89) (16.77) (68.80) (97.14) 41.19%
MAINT OF GARAGE AND STOCKROOM 48,912.75 61,430.95 77,921.52 86,843.68 11.45%
MAINT OF METERS 0.00 0.00 531.31 0.00 -100.00%
MAINT OF GEN PLANT 7,890.44 7,294.36 13,179.76 14,195.11 7.70%
TOTAL MAINTENANCE EXPENSES 152,250.56 569,416.51 220,714.35 774,147.76 250.75%
DEPRECIATION EXPENSE 280,105.78 287,729.05 560,211.56 575,458.10 2.72%
PURCHASED POWER FUEL EXPENSE 4,051,360.93 4,151,871.47 8,122,599.25 8,706,980.03 7.19%
VOLUNTARY PAYMENTS TO TOWNS 104,500.00 110,000.00 209,000.00 220,000.00 5.26%
TOTAL OPERATING EXPENSES 7,878,763.51 8,212,873.83 15,134,416.31 16,583,200.21 9.57%
** FY 11 YTD total includes GAW soil remediation expenses totalling $421,396.84
Total costs to date for entire project is $1,517,828.08
(12)
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
BUDGETED OPERATING EXPENSE VARIANCE REPORT
8/31/10
SCHEDULE G
ACTUAL BUDGET
OPERATION EXPENSES: YEAR TO DATE YEAR TO DATE VARIANCE * CHANGE
PURCHASED POWER BASE EXPENSE 4,966,750.11 5,008,576.00 (41,825.89) -0.84%
OPERATION SUPER AND ENGIN-TRANS 0.00 0.00 0.00 0.00%
OPERATION SUP AND ENGINEERING EXP 76,275.49 67,896.00 8,379.49 12.34%
STATION SUP LABOR AND MISC 18,234.52 12,684.00 5,550.52 43.76%
LINE MISC LABOR AND EXPENSE 102,621.20 80,730.00 21,891.20 27.12%
STATION LABOR AND EXPENSE 73,563.14 66,224.00 7,339.14 11.08%
STREET LIGHTING EXPENSE 7,203.07 10,859.00 (3,655.93) -33.67%
METER EXPENSE 48,330.64 75,511.00 (27,180.36) -36.0096
MISC DISTRIBUTION EXPENSE 53,335.64 53,254.00 81.64 0.15%
METER READING LABOR & EXPENSE 16,091.98 10,285.00 5,806.98 56.46%
ACCT & COLL LABOR & EXPENSE 183,345.54 214,082.00 (30,736.46) -14.36%
UNCOLLECTIBLE ACCOUNTS 30,000.00 30,000.00 0.00 0.0091.
ENERGY AUDIT EXPENSE 74,347.85 71,304.00 3,043.85 4.27%
ADMIN & GEN SALARIES 113,231.53 117,360.00 (4,128.47) -3.52%
OFFICE SUPPLIES & EXPENSE 45,547.15 46,413.00 (865.85) -1.87%
OUTSIDE SERVICES 17,531.88 59,338.00 (41,806.12) -70.45%
PROPERTY INSURANCE 61,833.76 79,806.00 (17,972.24) -22.52%
INJURIES AND DAMAGES 7,928.03 11,176.00 (3,247.97) -29.06%
EMPLOYEES PENSIONS & BENEFITS 294,914.26 249,491.00 45,423.26 18.21%
MISC GENERAL EXPENSE 24,520.88 34,277.00 (9,756.12) -28.46%
RENT EXPENSE 27,555.26 35,334.00 (7,778.74) -22.01%
ENERGY CONSERVATION 63,452.39 113,408.00 (49,955.61) -44.05%
TOTAL OPERATION EXPENSES 1,339,864.21 1,439,432.00 (99,567.79) -6.92%
MAINTENANCE EXPENSES:
MAINT OF TRANSMISSION PLANT 454.16 500.00 (45.84) -9.17%
MAINT OF STRUCT AND EQUIPMENT 18,223.56 30,595.00 (12,371.44) -40.44%
MAINT OF LINES - OR 182,937.43 189,458.00 (6,520.57) -3.44%
MAINT OF LINES - UG 24,706.62 31,590.00 (6,883.38) -21.79%
MAINT OF LINE TRANSFORMERS ** 446,884.34 319,334.00 127,550.34 39.94%
MAINT OF ST LT & SIG SYSTEM (97.14) 1,429.00 (1,526.14) -106.80%
MAINT OF GARAGE AND STOCKROOM 86,843.68 98,488.00 (11,644.32) -11.82%
MAINT OF METERS 0.00 606.00 (606.00) -100.00%
MAINT OF GEN PLANT 14,195.11 22,000.00 (7,804.89) -35.48%
TOTAL MAINTENANCE EXPENSES 774,147.76 694,000.00 80,147.76 11.5551.
DEPRECIATION EXPENSE 575,458.10 583,334.00 (7,875.90) -1.35%
PURCHASED POWER FUEL EXPENSE 8,706,980.03 8,453,874.00 253,106.03 2.99%
VOLUNTARY PAYMENTS TO TOWNS 220,000.00 220,000.00 0.00 0.00%
TOTAL OPERATING EXPENSES 16,583,200.21 16,399,216.00 183,984.21 1.12%
* ( ) = ACTUAL UNDER BUDGET
** FY 11 YTD total includes GAW soil remediation expenses totalling $421,396.84
Total costs to date for entire project is $1,517,828.08
(12A)
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
BUDGETED OPERATING EXPENSE VARIANCE REPORT
8/31/10
RESPONSIBLE REMAINING
SENIOR 2011 ACTUAL BUDGET REMAINING
OPERATION EXPENSES: MANAGER ANNUAL BUDGET YEAR TO DATE BALANCE BUDGET %
PURCHASED POWER BASE EXPENSE JP 27,711,574.00 4,966,750.11 22,744,823.89 82.08%
OPERATION SUPER AND ENGIN-TRANS KS 0.00 0.00 0.00 0.00%
OPERATION SUP AND ENGINEERING EXP KS 441,828.00 76,275.49 365,552.51 82.74%
STATION SUP LABOR AND MISC KS 85,205.00 18,234.52 66,970.48 78.60%
LINE MISC LABOR AND EXPENSE KS 520,806.00 102,621.20 418,184.80 80.30%
STATION LABOR AND EXPENSE KS 426,438.00 73,563.14 352,874.86 82.75%
STREET LIGHTING EXPENSE KS 66,694.00 7,203.07 59,490.93 89.20%
METER EXPENSE DA 482,771.00 48,330.64 434,440.36 89.99%
MISC DISTRIBUTION EXPENSE JD 347,115.00 53,335.64 293,779.36 84.63%
METER READING LABOR & EXPENSE DA 64,358.00 16,091.98 48,266.02 75.00%
ACCT & COLL LABOR & EXPENSE RF 1,397,984.00 183,345.54 1,214,638.46 86.89%
UNCOLLECTIBLE ACCOUNTS RF 180,000.00 30,000.00 150,000.00 83.33%
ENERGY AUDIT EXPENSE JP 494,776.00 74,347.85 420,428.15 84.97%
ADMIN & GEN SALARIES VC 776,849.00 113,231.53 663,617.47 85.42%
OFFICE SUPPLIES & EXPENSE VC 278,100.00 45,547.15 232,552.85 83.62%
OUTSIDE SERVICES VC 293,500.00 17,531.88 275,968.12 94.03%
PROPERTY INSURANCE JD 478,900.00 61,833.76 417,066.24 87.09%
INJURIES AND DAMAGES JD 64,805.00 7,928.03 56,876.97 87.77%
EMPLOYEES PENSIONS & BENEFITS JD 1,188,607.00 294,914.26 893,692.74 75.19%
MISC GENERAL EXPENSE VC 212,096.00 24,520.88 187,575.12 88.44%
RENT EXPENSE JD 212,000.00 27,555.26 184,444.74 87.00%
ENERGY CONSERVATION JP 643,730.00 63,452.39 580,277.61 100.00%
TOTAL OPERATION EXPENSES 8,656,562.00 1,339,864.21 7,316,697.79 84.52%
MAINTENANCE EXPENSES:
MAINT OF TRANSMISSION PLANT KS 3,000.00 454.16 2,545.84 84.86%
MAINT OF STRUCT AND EQUIPMT KS 187,404.00 18,223.56 169,180.44 90.28%
MAINT OF LINES - OH KS 1,199,735.00 182,937.43 1,016,797.57 84.75%
MAINT OF LINES - UG KS 190,258.00 24,706.62 165,551.38 87.01%
MAINT OF LINE TRANSFORMERS ** KS 693,500.00 446,884.34 246,615.66 35.56%
MAINT OF ST LT & SIG SYSTEM JD 8,857.00 (97.14) 8,954.14 101.10%
MAINT OF GARAGE AND STOCKROOM JD 676,532.00 86,843.68 589,688.32 87.16%
MAINT OF METERS DA 3,875.00 0.00 3,875.00 100.00%
MAINT OF GEN PLANT RF 132,000.00 14,195.11 117,804.89 89.25%
TOTAL MAINTENANCE EXPENSES 3,095,161.00 774,147.76 2,321,013.24 74.99%
DEPRECIATION EXPENSE RF 3,500,000.00 575,458.10 2,924,541.90 83.56%
PURCHASED POWER FUEL EXPENSE JP 39,512,664.00 8,706,980.03 30,805,683.97 77.96%
VOLUNTARY PAYMENTS TO TOWNS RF 1,320,000.00 220,000.00 1,100,000.00 83.33%
TOTAL OPERATING EXPENSES 83,795,961.00 16,583,200.21 67,212,760.79 80.21%
** FY 11 YTD total includes GAW soil remediation expenses totalling $421,396.84
Total costs to date for entire project is $1,517,828.08
(128)
TOWN OF READING, MASSACHUSETTS
MUNICIPAL LIGHT DEPARTMENT
PROFESSIONAL SERVICES
8/31/2010
PROFESSIONAL SERVICES BY PROJECT
ITEM DEPARTMENT ACTUAL BUDGET VARIANCE
1 RMLD AND PENSION TRUST AUDIT FEES ACCOUNTING 5,250.00 18,000.00 (12,750.00)
2 PENSION ACTUARIAL EVALUATION ACCOUNTING 0.00 0.00 0.00
3 LEGAL- FERC/ISO ISSUES ENERGY SERVICE 0.00 3,000.00 (3,000.00)
4 LEGAL- POWER SUPPLY ISSUES ENERGY SERVICE 560.21 8,000.00 (7,439.79)
5 PROFESSIONAL SERVICES ENERGY SERVICE 0.00 5,000.00 (51000.00)
6 NERC COMPLIANCE E & 0 0.00 1,250.00 (1,250.00)
7 ENGINEERING STUDIES ENGINEERING 0.00 3,750.00 (3,750.00)
8 LEGAL SERVICES- GENERAL GM 11,577.92 8,334.00 3,243.92
9 LEGAL SERVICES- ARBITRATION HR 0.00 0.00 0.00
10 LEGAL GENERAL HR 143.75 7,000.00 (6,856.25)
11 LEGAL GENERAL BLDG. MAINT. 0.00 250.00 (250.00)
12 SURVEY RIGHT OF WAY BLDG. MAINT. 0.00 834.00 (834.00)
13 ENVIRONMENTAL BLDG. MAINT. 0.00 834.00 (834.00)
14 ENGINEERING SERVICES BLDG. MAINT. 0.00 1,420.00 (1,420.00)
15 INSURANCE CONSULTANT GEN. BENEFIT 0.00 1,666.00 (1,666.00)
TOTAL 17,531.88 59,338.00 (41,806.12)
PROFESSIONAL SERVICES BY VENDOR
ACTUAL
MELANSON HEATH & COMPANY PC 6,817.77
RUBIN AND RUDMAN 5,938.11
DUNCAN AND ALLEN 4,632.25
CHOATE HALL AND STEWART 143.75
TOTAL 17,531.88
(13)
RMLD
BUDGET VARIANCE REPORT
FOR PERIOD ENDING AUGUST 31, 2010
DIVISION ACTUAL BUDGET VARIANCE CHANGE
ENGINEERING AND OPERATIONS 1,044,400 932,898 111,502 11.95%
ENERGY SERVICES 138,286 200,795 (62,510) -31.13%
GENERAL MANAGER 102,904 116,911 (14,007) -11.98%
FACILITY MANAGER 544,746 547,967 (3,221) -0.59%
BUSINESS DIVISION 1,443,151 1,502,691 (59,541) 3.96%
SUB-TOTAL 3,273,487 3,301,262 (27,776) -0.84%
PURCHASED POWER - BASE 4,966,750 5,008,576 (41,826) -0.84%
PURCHASED POWER - FUEL 8,706,980 8,453,874 253,106 2.99%
TOTAL 16,947,217 16,763,712 183,504 1.0991.
12:11 PM RMLD
9/23/2010 ENGINEERING AND OPERATIONS DIVISION BUDGET VARIANCE REPORT
FOR PERIOD ENDING AUGUST 31, 2010
ACTUAL BUDGET ACT/BUD
YTD YTD VARIANCE
E&O MGR 55 im AUG TOTAL TOTAL %
01-55-5920-101 LABOR REG 15,351 13,955 29,306 27,135 8.00%
01-55-5920-102 LABOR OT 0 0 0 250 -100.00%
01-55-5921-000 OFFICE SUPPLIES 0 28 28 84 -66.62%
01-55-5930-103 EE EDUCATION 0 0 0 1,500 -100.00%
01-55-5930-106 VEHICLE (792) (165) (958) 811 -218.03%
01-55-5923-000 OUTSIDE SERVICES 0 0 0 1,250 -100.00%
01-55-5930-105 MISC GENERAL 348 165 513 84 510.85%
SUB-TOTAL 14,907 13,983 28,890 31r115 -7.15%
ENGINEERING 65
01-65-5580-101 LABOR REG 30,945 29,750 60,695 57,168 6.17%
01-65-5580-102 LABOR OT 5,241 1,333 6,575 6,666 -1.37%
01-65-5580-103 EE EDUCATION 0 0 0 2,500 -100.00%
01-65-5580-105 SUPPLIES 9,599 175 9,774 750 1203.14%
01-65-5580-106 VEHICLE (635) (133) (768) 811 -194.65%
01-65-5921-000 OFFICE SUPPLIES 75 6 81 166 -50.92%
01-65-5923-000 OUTSIDE SERVICES 0 0 0 3,750 -100.00%
SUB-TOTAL 45,225 31,132 76,357 71,811 6.33%
\`E 66
01-66-5568-109 MAINT OF TRANS EXP 227 227 454 500 -9.17%
01-66-5581-101 LABOR MISC 42,650 38,225 80,875 52,689 53.50%
01-66-5581-109 GENERAL EXP 7,059 12,028 19,087 16,666 14.53%
01-66-5581-103 EE EDUCATION 2,206 453 2,659 11,375 -76.62%
01-66-5585-109 STREET LIGHT EXP 700 1,604 2,304 3,334 -30.88%
01-66-5585-101 LABOR REG ST LIGHT 1,557 1,743 3,300 2,634 25.28%
01-66-5585-102 LABOR OT ST LIGHT 377 65 442 834 -47.01%
01-66-5585-106 VEHICLE ST LIGHT 355 801 1,156 4,056 -71.490
01-66-5593-109 MAINT OF LINES 7,580 2,592 10,172 17,334 -41.32%
01-66-5593-101 LABOR REG MAINT LINE 30,857 36,751 67,608 41,263 63.85%
01-66-5593-102 LABOR OT MAINT LINE 45,585 21,265 66,851 43,340 54.25%
01-66-5593-106 VEHICLE MAINT OH LINE (5,468) 12,938 7,471 27,582 -72.91%
01-78-5593-110 TREE TRIMMING 13,892 16,945 30,837 59,938 -48.55%
01-66-5594-109 MAINT UG LINE 18,587 1,374 19,961 26,666 -25.14%
01-66-5594-101 LABOR REG UG LINES 3,541 279 3,820 2,113 80.82%
01-66-5594-102 LABOR OT UG LINE 0 583 583 1,666 -65.00%
01-66-5594-106 VEHICLE UG LINE 274 69 342 1,145 -70.09%
01-66-5596-109 ST LT & SIG EXP 0 0 0 42 -100.00%
01-66-5596-101 LABOR REG ST LT/SG 0 0 0 939 -100.00%
01-66-5596-102 LABOR OT ST LT/SG 0 0 0 42 -100.00%
01-66-5596-106 VEHICLE ST LT/SG (80) (17) (97) 406 -123.95%
01-66-5921-000 OFFICE SUPPLIES 0 0 0 42 -100.00%
SUB-TOTAL 169,900 147,925 317,825 314,607 1.02%
Pagel
12:11 PM RMLD
9/23/2010 ENGINEERING AND OPERATIONS DIVISION BUDGET VARIANCE REPORT
FOR PERIOD ENDING AUGUST 31, 2010
ACTUAL BUDGET ACT/BUD
YTD YTD VARIANCE
METER READING 80 JUL AUG TOTAL TOTAL
01-80-5902-101 LABOR REG 8,133 5,003 13,137 8,519 54.200
01-80-5902-102 LABOR OT 1,138 0 1,138 250 355.15%
01-80-5902-105 SUPPLIES 36 0 36 300 -88.00%
01-80-5902-106 VEHICLE 725 1,056 1,781 1,217 46.39%
SUB-TOTAL 10,033 6,059 16,092 10,286 56.45%
METER TECHNICIANS 67
01-67-5586-109 METER TECH EXP 1,143 1,615 2,758 2,166 27.35%
01-67-5586-101 LABOR REG 21,587 23,846 45,433 49,095 -7.46%
01-67-5586-102 LABOR OT 647 202 849 20,566 -95.87%
01-67-5586-103 EE EDUCATION 0 0 0 1,250 -100.00%
01-67-5586-106 VEHICLE (899) 189 (710) 2,434 -129.17%
01-67-5921-000 OFFICE SUPPLIES 0 0 0 42 -100.00%
SUB-TOTAL 22,478 25,853 48,331 75,552 -36.03%
STATION '68
01-68-5581-109 STATION OP 603 385 988 834 18.49%
01-68-5581-101 LABOR REG SUP 9,402 7,845 17,246 11,850 45.5'^
01-68-5582-109 STATION SUPPLIES (1,701) (78) (1,779) 834 -313.31,11,
.`..
01-68-5582-101 LABOR REG 30,236 27,667 57,903 43,109 34.32%
01-68-5582-102 LABOR OT 10,152 7,436 17,588 20,000 -12.06%
01-68-5582-103 EE EDUCATION 0 0 0 1,875 -100.00%
01-68-5582-105 SUPPLIES 74 64 138 0 100.00%
01-68-5582-106 VEHICLE (237) (50) (287) 406 -170.70%
SUB-TOTAL 48,529 43,269 91,798 78,907 16.34%
01-68-5590-109 SENIOR TECH EXP (11512) 29 (1,483) 5,000 -129.66%
01-68-5590-101 LABOR REG 8,364 9,919 18,283 22,024 -16.99%
01-68-5590-102 LABOR OT 1,290 168 1,457 1,666 -12.52%
01-68-5590-103 EE EDUCATION 0 0 0 834 -100.00%
01-68-5590-105 SUPPLIES 45 208 253 666 -62.00%
01-68-5590-106 VEHICLE (237) (50) (287) 406 -170.70%
01-68-5595-000 TRANSFORMER MAINT 49,473 397,411 446,884 319,334 39.94%
01-68-5597-109 MAINT METERS 0 0 0 166 -100.00%
01-68-5597-101 LABOR REG 0 0 0 355 -100.00%
01-68-5597-102 LABOR OT 0 0 0 84 -100.00%
01-68-5921-000 OFFICE SUPPLIES 0 0 0 84 -100.00%
SUB-TOTAL 57,423 407,685 465,108 350,619 32.65%
GRAND TOTAL 368,494 675,906 11044,400 932,898 11.95%
Page 2
1:53 PM RMLD
9/23/2010 BUSINESS DIVISION BUDGET VARIANCE REPORT
FOR PERIOD ENDING AUGUST 31, 2010
ACTUAL BUDGET ACT/BUD
YTD YTD VARIANCE
ACCOUNTING 59 JUL AUG TOTAL TOTAL
01-59-5903-101 LABOR REG 15,020 13,836 28,856 29,147 -1.00%
01-59-5903-102 LABOR OT 0 0 0 100 -100.00%
01-59-5903-103 EE EDUCATION 0 0 0 0 0.00%
01-59-5903-105 SUPPLIES 13,757 2,708 16,465 46,900 -64.89%
01-59-5921-000 OFFICE SUPPLIES 18,407 26,404 44,811 42,500 5.44%
01-59-5923-000 OUTSIDE SERVICES 1,250 4,000 5,250 18,000 100.00%
SUB-TOTAL 48,434 46,949 95,383 136,647 -30.20%
CUSTOMER SERVICE 62
01-62-5903-101 LABOR REG 34,762 31,632 66,393 69,319 -4.22%
01-62-5903-102 LABOR OT 41 0 41 1,000 -95.89%
01-62-5903-103 EE EDUCATION 4,437 152 4,589 750 511.92%
01-62-5903-105 SUPPLIES 0 0 0 2,500 -100.00%
01-62-5903-106 VEHICLE (792) (165) (958) 811 -218.03%
01-62-5904-000 UNCOLLECT ACCOUNTS 15,000 15,000 30,000 30,000 0.00%
01-62-5921-000 OFFICE SUPPLIES 0 0 0 400 -100.00%
SUB-TOTAL 53,448 46,618 100,066 104,780 -4.50%
u12. 61
01-61-5903-101 LABOR REG 33,295 31,965 65,259 56,854 14.78%
01-62-5903-102 LABOR OT 0 0 0 200 -100.00%
01-61-5903-103 EE EDUCATION 0 0 0 2,500 -100.00%
01-61-5903-105 SUPPLIES 995 1,703 2,698 4,000 -32.54%
01-61-5935-000 MAINT GEN PLANT 6,901 7,294 14,195 22,000 -35.48%
01-61-5921-000 OFFICE SUPPLIES 619 0 619 2,000 -69.06%
SUB-TOTAL 41,810 40,962 82,772 87,554 -5.46%
MISCELLANEOUS DEDUCTIONS 57/77
01-77-5403-000 DEPRECIATION EXP 287,729 287,729 575,458 583,334 -1.35%
01-77-5408-000 VOLUNTARY PAYMENTS 110,000 110,000 220,000 220,000 0.00%
01-77-5419-000 INTEREST EXP 1,017 1,019 2,036 2,000 1.82%
01-77-5426-000 OTHER DEDUCTIONS 180,990 180,990 361,980 362,500 -0.14%
01-57-5920-101 AC/BUS MGR LABOR REG 2,718 2,738 5,456 5,476 -0.37%
01-57-5930-109 AC/BUS MGR MISC GEN 0 0 0 400 -100.005.
SUB-TOTAL 582,454 582,476 1,164,930 1,173,710 -0.75%
GRAND TOTAL 726,145 717,005 1,443,151 1,502,691 -3.96%
Page 3
1:54 PM RMLD
9/23/2010 FACILITY MANAGER DIVISION BUDGET VARIANCE REPORT
FOR PERIOD ENDING AUGUST 31, 2010
w
ACTUAL BUDGET ACT/BUD
YTD YTD VARIANCE
GENERAL BENEFITS 53 JUL AUG TOTAL TOTAL %
01-53-5920-101 LABOR REG 7,713 4,547 12,260 13,494 -9.14%
01-53-5921-000 OFFICE SUPPLIES 0 0 0 170 -100.00%
01-53-5930-103 EE EDUCATION 0 0 0 834 -100.00%
01-53-5930-105 SUPPLIES 0 0 0 166 -100.00%
01-53-5923-000 OUTSIDE SERVICES 0 0 0 1,666 -100.00%
01-53-5924-000 PROPERTY INSURANCE 30,632 31,202 61,834 79,806 -22.52%
01-53-5925-000 INJURIES & DAMAGES 4,380 3,548 7,928 11,176 -29.06%
01-53-5926-000 EE PENS & BENEFIT 195,092 99,822 294,914 249,491 18.21%
01-53-5930-109 MISC GENERAL 0 0 0 500 -100.00%
01-53-5931-000 RENT 13,446 14,110 27,555 35,334 -22.01%
SUB-TOTAL, 251,263 153,229 404,492 392,637 3.02
TRANSPORTATION 63
01-63-5933-109 MISC GENERAL (50) (40) (90) (37,520) -99.76%
01-63-5933-101 LABOR REG 6,712 5,261 11,973 8,760 36.67%
01-63-5933-102 LABOR OT 669 482 1,151 1,300 -11.45%
01-63-5933-103 EE EDUCATION 0 0 500 -100.00%
01-63-5933-105 SUPPLIES (45,602) (13,689) (59,291) 67,522 -187.81%
LESS ALLOCATION RECLASS 38,271 7,986 46,257 (40,562) -214.04%
SUB-TOTAL 0 0 0 0 0.Or'
BUILDING MAINTENANCE 64
01-64-5923-000 OUTSIDE SERVICES 0 75 75 31338 -97.76%
01-64-5932-101 LABOR REG 9,459 11,960 21,419 18,179 17.82%
01-64-5932-102 LABOR OT 1,310 1,745 3,055 2,000 52.73%
01-64-5932-103 EE EDUCATION 0 0 0 500 -100.00%
01-64-5932-105 SUPPLIES 14,643 47,727 62,370 77,808 -19.84%
SUB-TOTAL 25,413 61,506 86,918 101,825 -14.64%
MATERIALS MANAGEMENT 60
01-60-5588-109 MISC DIST EXP 1,662 3,648 5,310 7,500 -29.20%
01-60-5588-101 LABOR REG 22,053 20,048 42,101 42,079 0.0551.
01-60-5588-102 LABOR OT 0 0 0 666 -100.00%
01-60-5588-103 EE EDUCATION 0 0 0 350 -100.00%
01-60-5588-105 SUPPLIES 937 4,988 5,925 2,500 136.99%
01-60-5588-104 RFP EXPENSES 0 0 0 160 -100.00%
01-60-5921-000 OFFICE SUPPLIES 0 0 0 250 -100.00%
SUB-TOTAL 24,652 28,684 53,336 53,505 -0.32%
GRAND TOTAL 301,328 243,418 544,746 547,967 -0.59%
Page 4
1:55 PM RMLD
9/23/2010 GENERAL MANAGER DIVISION BUDGET VARIANCE REPORT
FOR PERIOD ENDING AUGUST 31, 2010
ACTUAL BUDGET ACT/BUD
YTD YTD VARIANCE
GENERAL MANAGER 51 JUL AUG TOTAL TOTAL %
01-51-5920-101 LABOR REG 20,099 18,546 38,645 37,091 4.19%
01-51-5921-000 OFFICE SUPPLIES 8 8 416 -98.15%
01-51-5923-000 OUTSIDE SERVICES 1,568 10,010 11,578 8,334 38.92%
01-51-5930-103 EE EDUCATION 475 1,061 1,536 2,125 -27.73%
01-51-5930-105 MISC GENERAL 4,241 4,133 8,373 9,166 -8.65%
01-51-5930-106 VEHICLE (792) (165) (958) 811 -218.03%
SUB-TOTAL 25,598 33,584 59,182 57,943 2.14%
HUMAN RESOURCES 52
01-52-5920-101 LABOR REG 8,562 7,750 16,312 18,861 -13.51%
01-52-5921-000 OFFICE SUPPLIES 0 0 0 50 -100.00%
01-52-5923-000 OUTSIDE SERVICES 0 144 144 7,000 -97.95%
01-52-5930-103 EE EDUCATION 0 0 0 1,600 -100.00%
01-52-5930-105 SUPPLIES 0 545 545 100 445.00%
01-52-5930-109 MISC GENERAL 300 185 485 2,988 -83.77%
SUB-TOTAL 8,862 8,624 17,486 30,599 -42.85%
COMMUNITY RELATIONS 54
154-5920-101 LABOR REG 5,894 5,358 11,253 14,077 -20.06%
'u -54-5921-000 OFFICE SUPPLIES 0 0 0 125 -100.00%
01-54-5930-109 MISC GENERAL 284 7,785 8,069 11,367 -29.02%
01-54-5930-103 EE EDUCATION 150 0 150 0 100.00%
01-54-5930-105 SUPPLIES 0 0 0 125 -100.00%
SUB-TOTAL 6,328 13,143 19,471 25,694 -24.22%
CAB 56
01-56-5920-101 LABOR REG 0 0 0 775 -100.00%
01-56-5920-102 LABOR OT 0 0 0 200 -100.00%
01-56-5930-109 MISC GENERAL 1,100 2,001 3,101 1,450 113.85%
SUB-TOTAL 1 100 2,001 3,101 2,425 27.87%
BOARD 58
01-58-5930-109 MISC GENERAL 1,650 2,014 3,664 250 1365.76%
SUB-TOTAL 1,650 2,014 3,664 250 1365.76%
GRAND TOTAL 43,538 59,366 102,904 116,911 -11.98%
Page 5
1:55 PM
9/23/2010
RMLD
ENERGY SERVICES DIVISION BUDGET VARIANCE REPORT
FOR PERIOD ENDING AUGUST 31, 2010
ACTUAL BUDGET ACT/BUD
YTD YTD VARIANCE
ENERGY SERVICES 75 JUL AUG TOTAL TOTAL
01-75-5916-000 ENERGY SERV EXP 325 1,825 2,150 4,000 -46.25%
01-75-5916-101 LABOR REG 35,749 30,521 66,270 65,720 0.84%
01-75-5916-103 EE EDUCATION 894 1,495 2,390 1,250 91.16%
01-75-5916-109 KEY ACCOUNT 3,538 0 3,538 334 959.28%
01-75-5921-000 OFFICE SUPPLIES 0 0 84 -100.00%
01-75-5923-000 OUTSIDE SERVICES 0 485 485 16,000 -96.97%
01-75-5916-402 RES CONSERVE PROG 11,667 10,534 22,201 36,202 -38.68%
01-75-5916-403 RES CONSERVE OTHER 0 0 0 3,231 -100.00%
01-75-5916-502 COMM CONSERVE PROG 27,912 5,800 33,712 66,434 -49.25%
01-75-5916-503 COMM CONSERVE OTHER 3,770 3,770 7,540 7,540 0.00%
GRAND TOTAL 83,855 54,430 138,286 200,795 -31.13%
Page 6
AMLD
® DEFERRED FUEL CASH RESERVE ANALYSIS
8/31/10
GROES MONTHLY TOTAL
DATE CHARGES REVENGES PASITY CREDIT DEFERRED DEP6RHID
Jun-30 1,326,113.09
Ju1-10 4,555,108.56 3,536,618.90 (98,501.74) (1,116,991.40) 1,109,120.69
Aug-1O 4,151,871.47 3,658,711.48 (49,919.96) (543,079.95) 666,040.74
RMLD
STAFFING REPORT
FOR FISCAL YEAR ENDING JUNE, 2011
ACTUAL
11 BUD JUL AUG
TOTAL 10 10
C'F.rTF.RaT. MLTTn�F.R
GENERAL MANAGER 2 2 2
HUMAN RESOURCES 1.5 1 1
COMMUNITY RELATIONS 1.5 1 1
TOTAL 5 4 4
BUSINESS
ACCOUNTING 2 2 2
CUSTOMER SERVICE 9 8 8
MGMT INFORMATION SYS 6 6 6
MISCELLANEOUS 1 1 1
TOTAL 18 17 17
ENGINEERING & OPERATIONS
AGM E&O 2 2 2
ENGINEERING 5 5 5
LINE 20 19 19 -'
METER 6 6 6
STATION 9 9 9
TOTAL 42 41 41
RRO.TF.rtr
BUILDING 2 2 2
GENERAL BENEFITS 2 2 2
TRANSPORTATION 0 0 0
MATERIALS MGMT 4 4 4
TOTAL 8 8 8
ENERGY SERVICES
ENERGY SERVICES 6 6 5
TOTAL 6 6 5
RMLD TOTAL 79 76 75
CONTRACTORS
UG LINE 2 2 2
TOTAL 2 2 2
GRAND TOTAL 81 78 77
ATTACHMENT 4
-- To: Vincent Cameron
From: Energy Services
Date: September 21, 2010
Subject: Purchase Power Summary—August, 2010
Energy Services Division (ESD) has completed the Purchase Power Summary for the
month of August, 2010.
ENERGY
The RMLD's total metered load for the month was 71,572,138 kWhs, which was a
decrease of 1.69 % compared to August, 2009 figures.
Table 1 is a breakdown by source of the energy purchases.
TABLE 1
Amount of Cost of %of Total Total$ $as a
Resource Energy Energy Energy Costs %
(kWh) ($/Mwh)
Millstone#3 3,220,819 $5.51 4.50% $17,747 0.43%
Seabrook 5,878,709 $8.86 8.21% $52,087 1.25%
Stonybrook 7,171,097 $48.60 10.01% $348,545 8.39%
Constellation 14,880,000 $63.43 20.77% $943,838 22.73%
PASNY 1,663,625 $4.92 2.32% $8,185 0.20%
ISO Interchange 6,754,423 $32.85 9.43% $222,638 5.36%
NEMA Congestion 0 $0.00 0.00% -$6,912 -0.17%
Coop Resales 70,723 $132.33 0.10% $9,359 0.23%
Stonybrook Peaking 363,237 $171.62 0.51% $62,337 1.50%
MacQuarie 29,664,000 $80.25 41.42% $2,380,515 57.34%
Braintree Watson Unit 1,958,503 $57.97 2.73% $113,532 2.73%
Monthly Total 71,625,136 $57.97 100.00% $4,151,871 100.00%
Table 2
Amount Cost % of Total
Resource of Energy of Energy Energy
(kWh) ($/Mwh)
ISO DA LMP -9,765,835 58.59 -13.63%
Settlement
RT Net Energy 16,520,258 46.03 23.06%
Settlement
ISO Interchange 6,754,423 27.87 9.43%
(subtotal)
Table 2 breaks down the ISO interchange between the DA LMP Settlement and the
RT Net Energy for month of August, 2010.
CAPACITY
The RMLD hit a demand of 159,614 kWs, which occurred on August 31, 2010 at 5 pm.
The RMLD's monthly UCAP requirement for August 2010 was 212,197 kWs. Table 3
shows the sources of capacity that the RMLD utilized to meet its requirement.
Table 3
Source Amount(kWs) Cost($/kW-month) Total Cost$ %of Total Cost
Millstone#3 4,991 $62.75 $313,173 19.98%
Seabrook 7,902 $56.70 $448,040 28.58%
Stonybrook Peaking 24,981 $1.93 $48,264 3.08%
Stonybrook CC 42,925 $3.30 $141,500 9.03%
Pasny 0 $2.96 $11,896 0.76%
HQICC 6,570 $4.34 $28,522 1.82%
ISO-NE Supply Auction 114,308 $4.03 $460,252 29.36%
Braintree Watson Unit 10,520 $11.04 $116,155 7.41%
Total 212,197 $7.39 $1,567,802 100.00%
Table 4
Resource Energy Capacity Total cost % of Total Cost
Millstone#3 $17,747 $313,173 $330,920 5.79%
Seabrook $52,087 $448,040 $500,127 8.74%
Stonybrook $348,545 $141,500 $490,046 8.57%
HQ II $0 $28,522 $28,522 0.50%
Constellation $943,838 $0 $943,838 16.50%
PASNY $8,185 $11,896 $20,081 0.35%
ISO Interchange $222,638 $460,252 $682,890 11.94%
Nema Congestion -$6,912 $0 -$6,912 -0.12%
Coop Resales $9,359 $0 $9,359 0.16%
Stonybrook Peaking $62,337 $48,264 $110,601 1.93%
Integrys $1,717,728 $0 $1,717,728 30.03%
MacQuarie $662,787 $0 $662,787 11.59%
Braintree Watson Unit $113,532 $116,155 $229,687 4.02%
Monthly Total $4,151,871 $1,567,802 $5,719,674 100.00%
Table 4 shows the total dollar amounts for energy and capacity per source.
TRANSMISSION
The RMLD's total transmission costs for the month of August, 2010 are $922,671. This
is a 2.37% increase from the July 2010 cost of$901,289. In 2009, the transmission costs
for the month of August, 2009 were $769,792.
... . . ........... ............................ ............... ... ......................
'Table 5
.................................. _ ............. ., ..............�.. .........
Current Month' Last Month Last Year
............ ._ ........................... ...... .. ..........
(kW)
. .
Peak Demand kW 159,614 168,426 155,759
Ener kWh 71,625,136 78,033,860 72,835,439
...........
................... .. ... .................
.;Energy ($) $4,151,871 $4,555,109' $4,051,361
Capacity ($) $1,567,802; $1,570,744' $1,880,365'
_... .... _._ ;.... . .. ..................ti...,_,,.. . ....... .. ...... ...._. __. .. .......
__..
Transmission($) $922,671 . $901,289! $769,792.
...., ........
Total $6,642,344. $7,027,141 $6,701,518
Table 5 shows the current month vs. last month and last year(August, 2009).
ATTACHMENT 5
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11:36 AM
9/20/2010
READING MUNICIPAL LIGHT DEPARTMENT
FY 11 CAPITAL BUDGET VARIANCE REPORT
FOR PERIOD ENDING AUGUST 31,2010
ACTUAL YTD ACTUAL ANNUAL
COST COST BUDGET
# PROJECT DESCRIPTION TOWN AUGUST THRU 8/31/10 AMOUNT VARIANCE
E&O Construction-SVstem Projects
1 4W14 Reconductoring-West Street W 234,470 234,470
2 4W14 Extension-Woburn Street W 157,958 157,958
3 Station#4 Getaway 4W17 Replacements(FY10 Budget) R 83,493 135,387 169,928 34,541
4 Boutwell Street W 125,955 125,955
5 Chestnut Street W 171,933 171,933
6 Haverhill Street-Reconductoring(FY10 Budget) R 35,592 74,013 100,534 26,521
7 URD Completions-Perkins Farm-Lynnfield NR,L 434 72,484 72,050
and Chestnut Village,North Reading(FY10 Budget)
** 8 Salem St.to Glen Rd. 13kkV Feeder Tie(FY10 Budget) W 11,531 11,334 (197)
22 Wilmington-Main Street(FY10 Budget) W 4,642 29,432 34,975 5,543
33 4W4 Reconductoring(formerly Project 3) W 103,315 103,315
36 3W8 Salem Street&Baystate Road(formerly Project 6) R 207,439 207,439
37 Elm Street(Formerly Project 7) NR 132,011 132,011
Station Upgrades
Station#4
38 115kV Insulator Replacement (formerly Project 8) R 144,323 144,323
9 115kV Disconnect Replacement R 87,975 87,975
11 Transformer Replacement
Part 1 -Contractual Labor R 545,500 545,500
Part 2-Procured Equipment R 17,325 17,981 30,000 12,019
Part 3-RMLD Labor R 19,244 39,431 64,324 24,893
Part 4-Feeder Re-Assignment R 236,034 236,034
Station#5
23 15kV Circuit Breaker Replacement(Carryover FY10 Bud) W 120,900 120,900 158,731 37,831
New Customer Service Connections
12 Service Installations-Commercial/Industrial Customers ALL 55,055 55,055
13 Service Installations O/H&U/G-Residential Customers ALL 17,816 38,686 200,345 161,659
14 Routine Construction
Various Routine Construction ALL 104,546 187,697 982,565 794,868
Total Construction Projects 403,558 655,492 4,027,188 3,371,696
Other Proiects
15 GIS 12,125 20,000 7,875
16 Transformers/Capacitors Annual Purchases 190,167 190,167
17 Meter Annual Purchases 765,875 765,875
18 Purchase Two New Small Vehicles 64,000 64,000
19 Replace Line Department Vehicles 360,000 360,000
20 Purchase Pole Trailer 15,000 15,000
21 Upgrade Lighting Stockroom and Meter Room 3,798 22,400 18,602
24 Enlarge Parking Area and Construct Island 10,775 10,775
27 Hardware Upgrades 192 1,410 33,700 32,290
28 Software and Licensing 640 2,190 96,476 94,286
Total Other Projects 832 19,523 1,578,393 1,558,870
/" TOTAL RMLD CAPITAL PROJECT EXPENDITURES 404,390 675,015 5,605,581 4,930,566
Reading Municipal Light Department
Engineering and Operations
Monthly Report
August, 2010
FY 2011 Capital Plan
E&O Construction — System Projects
1. 4W14 Reconductoring —West Street—Wilmington — No activity.
2. 4W14 Extension —Woburn Street - Wilmington — No activity.
3. Station #4 Getaway 4W17 Replacements— Reading (FY10 Budget) - Installed new
underground feeder cable, stress cones, spliced, performed terminations, and
engineering labor.
4. Boutwell Street—Wilmington — No activity.
5. Chestnut Street—Wilmington — No activity.
6. Haverhill Street— Reading — Reconductoring - (FY10 Budget) — Installed new
spacer cable, transformers, spacers, taps, cutouts, anchors, and gang operated
switches, transfers; built, energized and transferred transformer bank, engineering
labor.
7. URD Completions — Perkins Farm, Lynnfield and Chestnut Village, North Reading —
No activity.
8. Salem Street to Glen Road 13 kV Feeder Tie —Wilmington -(FY10 Budget) —
Complete.
22. Wilmington — Main Street(FY 10 Budget)— Install primary cable and transformers,
energized and converted, engineering labor.
33. 4W4 Reconductoring —Wilmington — No activity.
36. 3W8 Salem & Bay State Road — Reading —No activity.
37. Elm Street— North Reading— No activity.
Substation Upgrade Projects
38. 1151kV Insulator Replacement— Station 4— Reading — No activity.
9. 1151kV Disconnect Replacement— Station 4— Reading — No activity.
1
11. Transformer Replacement— Station 4 - Reading
Part 1 — Contractual Labor— No Activity.
Part 2 — Procured Equipment— Miscellaneous Items.
Part 3 — RMLD Labor— Relay panel relocations and control wire modifications.
Part 4 — Feeder Re-Assignment— No activity.
23. 15kV Circuit Breaker Replacement— Station 5 —Wilmington — Circuit breakers for
project received.
New Customer Service Connections
12. Service Installations — Commercial/Industrial Customers— This item includes new
service connections, upgrades, and service replacements for the commercial and
industrial customers. This represents the time and materials associated with the
replacement of an existing or installation of a new overhead service, the connection of
an underground service, etc. This does not include the time and materials associated
with pole replacements/installations, transformer replacement/installations, primary or
secondary cable replacement/installations etc. This portion of the project comes under
routine construction.
13. Service Installations — Residential Customers—This item includes new or upgraded
overhead and underground services, temporary overhead services, and large
underground development.
14. Routine Construction —The drivers of the Routine Construction budget category
YTD are listed. This is not an inclusive list of all items within this category.
Pole Setting/Transfers $44,408
Maintenance Overhead/Underground $65,280
Projects Assl ned as Required $25,263
Pole Damage (includes knockdowns) some reimbursable $2,108
Station Group $0
Hazmat/OlI Spills $0
Porcelain Cutout Replacement Program $1,477
Lighting Street Light Connections $2,268
Storm Trouble $841
Underground Subdivisions $749
Miscellaneous Capital Costs $45,303
TOTAL $187,697
*In the month of August, there were five cutouts charged under this program.
Approximately 31 cutouts were installed new or replaced because of damage making
a total of 36 cutouts replaced this month.
Force Accounts — The Commonwealth of Massachusetts requires utility plant
equipment relocations in conjunction with various roadway reconstruction projects.
No projects scheduled at this time.
2
Reliability Report
Two key industry standard metrics have been identified to enable the RMLD to measure and
track system reliability. A rolling 12-month view is being used for the purposes of this report.
Customer Average Interruption Duration Index (CAIDI) — Measures how quickly the
RMLD restores power to customers when their power goes out.
CAIDI = Total of Customer Interruption Duration for the Month in Minutes/Total
number of customers interrupted.
RMLD 12 month system average outage duration —46.95 minutes
RMLD 4 year average outage (2006-2009) — 50.98 minutes per outage
On average, RMLD customers that experience an outage are restored in 46.95 minutes.
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RMLD 12 month system a\erage outagduration 46.95 4 year average outage duration 50.98 (2006-2009)
3
System Average Interruption Frequency (SAIFI) — Measures how many outages each
customer experiences per year on average.
SAIFI = Total number of customer's interrupted/Total number of customers.
RMLD 12 month system average - .79 outages per year
RMLD 4 year average outage frequency- .82
The graph below tracks the month-by-month SAIFI performance.
1.80
1.56
y 1.60 -
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--- RMLD 12 month system average outage frequency.79
RMLD 4 year average outage frequency.82(2006-2009)
Months Between Interruptions (MBTI)
Another view of the SAIFI data is the number of months Reading customers have no
interruptions. At this time, the average RMLD customer experiences an outage every
15.19 months.
4
R-M-LD Reading Municipal Light Department
RELIABLE POWER FOR GENERATIONS
230 Ash Street
P.O.Box 150
Reading,MA 01867-0250
Tel:.(781)944.1340
Fax:(781)942-2409
Web:www.rmld.com
September 14,2010
Town of Reading Municipal Light Board
Subject: 115KV 2000 Amp Disconnect Switches
On August 4,2010 a bid invitation was placed as a legal notice in the Reading Chronicle requesting proposals
for 115KV 2000 Amp Disconnect Switches for the Reading Municipal Light Department.
An invitation to bid was emailed to the following:
Stuart C.Irby Co. WESCO Robinson Sales Power Sales Group
Hasgo Power Power Tech(UPSC) Graybar Shamrock Power Sales
J.F. Gray EL Flowers
Bids were received from Turner Electric, EMSPEC Electro Mechanical Systems, Inc., Stuart C. Irby Co.,
WESCO and Graybar.
The bids were publicly opened and read aloud at 11:00 a.m. September 7, 2010 in the Town of Reading
Municipal Light Department's Board Room,230 Ash Street,Reading,Massachusetts.
The bids were reviewed,analyzed and evaluated by the General Manager and the staff.
Move that bid 2011-06 for 115KV 2000 Amp Disconnect Switches be awarded to: EMSPEC Electro
Mechanical Systems Inc.for a total cost of$43,480.00
Item(desc.) Qty Manufacturer Unit Cost Total Net Cost
1 -Switches 4 EMSPEC $10,495.00 $41,980.00
Option-Factory Rep $ 1,500.00
$43,480.00
as the lowest qualified bidder on the recommendation of the General Manager.
The total 2011 Capital Budget allocation for"GAW Station 115kV disconnect switch replacement"is$48,000.
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Ke0m Sullwan
Nick D'Alleva
File:Bid/FY11 GAW bids/2011-06
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Page 1 of-2
Jeanne Fob
From: Vincent Cameron
Sent: Wednesday, August 25, 2010 3:00 PM
To: Mary Ellen O'Neill; Richard Hahn; Phil Pacino; Bob Soil; Gina Snyder
Cc: Bob Fournier; Lee Ann Fratoni; Jeanne Foti
Subject: FW:Account Payable and Payroll Questions -August 20 &August 13
August 20
Snyder
1. AT+T-What is this line for? Why a $5 late charge when bill isn't due until Sept 4?
This RMLD was assessed this late charge previously because AT&T took the RMLD payment,for several
accounts, and applied it to one account. The RMLD has been in contact with AT&T to get this
removed and is still working on it.
August 13
Soli
1. Town of Reading - Inland Marine Insurance? Do we own boats?
No, we do not own boats. inland marine insurance is an insurance term for insuring vehicles and
equipment. I have asked Peter H.why we are paying a portion of the town's coverage on this. He will get
back to me.
Hahn
1. McMaster Carr-Why didn't we pay by 8/15+save$5.14?
It takes almost two weeks from the time the RMLD receives a bill until the vendor receives payment. The
RMLD could not get payment to the vendor that fast unless it was wired, which would cost more than
$5.14.
2. Waveguide-What is wrong with the RMLD fiber optic cable?
The signal on the fiber optic cable was interrupted a month ago and we had a company come in and
diagnose the problem, which was was internal at Station 3 and not the fiber itself. The ntework is back
working
O'Neill -Account Payable
1. Town of Reading -We.pay life insurance premiums for some retirees? is this a regular part of the
RMLD's retirement package?
The RMLD pays life insurance premiums for all retirees according to MGL 32B.
2. Waukesha-There should be a PO for this invoice.
This is an extra, related to rigging the transformers, that did not have a PO cut. The explanation is on the
memo attached to the invoice.
O'Neill -Payroll
8/25/2010
robe i �z 1
Jeanne Foci
From: Vincent Cameron
Sent: Tuesday, August 31, 2010 8:38 AM
To: Mary Ellen O'Neill; Richard Rahn; Phil Pacino; Bob Soli; Gina Snyder
Cc: Bob Fournier; Lee Ann Fratoni; Jeanne Foti
Subject: FW:Account Payable and Payroll Questions August 27
Snyder
1. Refund - Bing Xia-GM signature? Also -what charge does get made if meter mis-reads. Do we
average over several months?
Signed. If the RMLD finds an incorrect read it is analyzed and historical data may be used to correct the
situation.
2. NEPPA Carakatsane-Warrant and handwritten total, how will they be reconciled.
The note attached to this invoice stated that the "check will be redeposited and a new check will be
issued on 9/14"for$847.51.
3. NGrid + NSTAR-What's the difference between Hydro Quebec from NGrid + NStar?
Each utility owns transmission that transmits the Hydro Quebec energy resource.
Hahn
1. Carakatsane-Shouldn't check be for$847.51?
Yes. The note attached to this invoice stated that the "check will be redeposited and a new check will be
issued on 9/14"for$847.51.
2. Crete-What is this mileage for?
This employee handles mail delivery to the Post Office and receives mileage for his personal vehicle use.
BSoli-AP
1. Ecolighting Where are LED lights going?
I will have the Energy Efficiency Engineer call you on this subject.
Soli - Payroll
1. Linemen OT -$344K YTD OT in 2 months?
The overtime is recorded on a calendar year basis.
8/31/2010
rage i or i
Jeanne Fob
From: Vincent Cameron
Sent: Wednesday, September 08, 2010 8:34 AM
To: Mary Ellen O'Neill; Richard Hahn; Phil Pacino; Bob Soli; Gina Snyder
Cc: Bob Fournier; Lee Ann Fratoni; Jeanne Foti
Subject: FW:Account Payable Questions-September 3
Sot!
1. Bond- Shouldn't they claim sales tax exemption on resale items ¬ pay sales tax on some of their
purchases?
The RMLD pays sales tax on items that are purchased by vendors working for us. Venders would have
to convince Home Depot that the items being purchased are for the RMLD. Whose tax free ID would they
use?
Snyder
1. Bond - Did they rent a sump pump + power washer to do de-con work?
Yes. They needed this equipment for decontamination work.
2. D + F Plumbing -Why is Monday of week ending 8128 considered OT? What happened to the back
flow preventer-did it,break/fail?
Water systems had to be shut down for some of the work so it was done after hours. Some of the
preventers were in need of repair so all were examined.
9/8/2010
Jeanne FoU
From: Vincent Cameron
Sent: Monday, September 13, 2010 2:58 PM
To: Mary Ellen O'Neill; Richard Hahn; Phil Pacino; Bob Soli; Gina Snyder
Cc: Bob Fournier; Lee Ann Fratoni; Jeanne Foti
Subject: FW:Account Payable September 10
Snyder
1. Elite- Bills are identical except for dates-Did they wash the same 18 vehicles on 8-16, 9-6 + 8-2.
That seems rather frequent.
Elite washes the same vehicles each week. The contract calls for the vehicles to be washed every two
weeks June through October and once a week November through May.
2. NStar-Why paying $12,581.14 when bill is for$25,162.56?
The difference in the amounts is that the prior months payment didn't get credited to the account by the
time the new bill went out. That is why the payment was for the new charges.
9/13/2010
Page 1 of 1
Jeanne Fob
From: Vincent Cameron
gent: Tuesday, September 21, 2010 9:02 AM
To: MaryEllen O'Neill; Richard Hahn; Phil Pacino; Bob Soil; Gina Snyder
Cc: Bob Fournier; Lee Ann Fratoni; Jeanne Foti
Subject: FW:Account Payable Questions -September 17
Snyder
1. Hurley- Is it a problem if the P.O. doesn't cover the cost? (2 of the 4 bills).
The Hurley bills do go over the PO amount because they don't cut wire off the reel to the length on the
PO. However, according to Chapter 30B, the RMLD can purchase up to 25% over the price on the PO.
9/21/2010