HomeMy WebLinkAboutLight Comm. 03/21/2022Mansfield Municipal Electric Department RECEIVED
Minutes of Light Commissioners Meeting 111_FF',�KS OFFICE
March 21, 2022
M2 APR 28 A 8: 21'
Present: Chair Frank Delvecchio, Vice Chair Jess Aptowitz, Commissioner Mfl ike Tr?wP id%e,
Business Manager Joseph Pereira, Mayhew Seavey of PLM, Ron DeCur�io 611VI1 F :an 1,
Light Department Manager Joseph Sollecito
The meeting was held at the Mansfield Town Hall, room 3AB and was also virtual via
GoToWebinar. It was called to order at 5:30 PM followed by the Pledge of Allegiance.
A complete copy of the Board packet containing all documents that are referenced in the
minutes is on file at the Mansfield Municipal Electric Department office.
Citizens Comments - none
Motion: To approve the minutes from the February 28, 2022 Light Commissioners
meeting
(Aptowitz/Trowbridge) Passes 3/0
MMED's Power Supply Budget for FY23 - Manager Sollecito stated that MMED does
provide great service and great rates but is not immune to the things that are going on in the
world. Due to the inflation over the last few months, equipment and labor costs have greatly
increased. He discussed MMED's rate structure and how there is an option to do a `purchase
power' adjustment at any time without raising the `base' rate to avoid sticker shock come July.
At this time Chair Delvecchio stated that Clerk Rhein was not in attendance and the following
motion was made.
Motion: To appoint Vice Chair Aptowitz as the clerk for the March 21, 2022 meeting
(Trowbridge/Delvecchio) Passes 3/0
Mayhew Seavey of PLM was in attendance and continued with the discussion of the FY23
Power Supply Budget. He explained the huge economic impact of supply and demand and how
the demand drives the prices. He said MMED's total power cost is forecasted to be higher by
$3.1 million than the original FY22 budget from April 2021. This is due to energy costs being
60% higher than what was forecasted in the FY22 budget. Mr. Seavey reviewed a graph
showing historic energy usage trends. He said that the total energy load increased to 221 million
during 2021 and has increased to 223 million by February 2022. He presented three different
scenarios that were considered when looking at budget costs. His recommendation is the
middle ground of the Jan-22 option which would mean an 11% rate increase. He told the Board
that he will definitely have more up-to-date information at the next meeting.
Vice Chair Aptowitz noted that the budget has to be conservative but realistic. He thinks
gradually easing into something rather than a big swing is better. He asked what the average
bill would be now. Manager Sollecito said the average bill of 500 kwh would be $57. He told
the Board that they can choose not to do anything until July but he would need a vote this
evening if they wanted to make a change as of April 1.
M
Motion: To approve the January-22 option of a .0132 cent increase in MMED's rate
beginning April 1, 2022
(Trowbridge/Aptowitz) Passes 310
Discussion of MMWEC Working Capital — Manager Sollecito told the Board that the
MMWEC Working Capital Fund was established so that MMWEC pays MMED's energy bills
to ISO NE in a timely manner and MMED repays MMWEC. This ensures that the bills are
paid on time and MMED is actually paying about two months behind. This arrangement is for
all service participants in the NEPEX agreement. Manager Sollecito says MMED now has to
increase the amount being paid to the MMWEC Working Capital Fund. He said that $3.2
million needs to be added to the base of $2.2 million.
Ron DeCurzio from MMWEC joined the meeting virtually. He explained that the average
monthly bill being paid by MMWEC was $969,000 and has now jumped to $1.6 million.
MMED now has a $1.4 million loan outstanding and he said this is an emergency. He noted
that all of their members are being reassessed.
Commissioner Trowbridge asked what can be done about monitoring the situation going
forward so that the Board doesn't get surprised. Mr. DeCurzio said that monitoring has been
done on a monthly basis and that it has been three months now so it was time to bring this to
the Board's attention. Commissioner Trowbridge suggested that he would like to have a future
discussion about reserves.
Chair Delvecchio questioned the status of MMED's earnings if there is no assessment done.
Business Manager Pereira said that MMED has a couple of bank accounts; operating accounts;
the depreciation fund and a customer deposit account.
Commissioner Trowbridge wondered if it made sense to put more money towards this. Mr.
Seavey said he did not see the downside. Business Manager Pereira agreed and said it is the
right thing to do.
Discussion of meter error — Manager Sollecito explained a metering problem involving the
Bird Road transformer #2 metering which Mayhew Seavey discovered in December 2021.
Manager Sollecito said that National Grid was immediately notified and he followed up several
times over several months. National Grid was slow to respond until about three weeks ago
when they realized that the multiplier on the meter was incorrectly changed in September 2021.
Manager Sollecito said that National Grid is owed money but it does not need to be collected
all at once.
Special Project 2022A MMWEC Campus Battery Storage Project — Manager Sollecito
explained the MMWEC Campus Battery Storage Project and said that he would be looking for
a vote for MMED to participate in this project. He said that MMED has a capacity obligation
that is paid on a monthly basis and is determined by the ISO capacity auction. MMWEC
manages other `capacity' resources as well as battery storage. Manager Sollecito stated that he
prefers MMWEC has ownership of such a project since MMWEC would maintain and operate
the facility. MMED doesn't have a staff large enough for such a project.
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Ron DeCurzio explained that once you have the documents, you have fifty days to decide if
you want to participate. It was unclear as to when the fifty days started and there was a
discussion about it.
Vice Chair Aptowitz wondered how you would decide whether to support or not support
something without knowing all of the information. Chair Delvecchio said he would really like
to have a full Board for this decision. Commissioner Trowbridge suggested discussing this in
executive session. Manager Sollecito pointed out that the meeting was not posted with the
Board returning to regular session. It was decided to discuss this in executive session and then
come back to regular session to vote on it.
Extending Fiber Optics at the Xfinity Center — Manager Sollecito reviewed that the original
estimate for the fiber optic at the Xfinity Center only brought the fiber to the entrance of the
property, not to the Emergency Response Area. MMED went back to Xfinity and asked if they
would contribute to the cost for bringing it to the Emergency Response Area. Xfinity tried
looking at other options and as of now, have not reached out to Manager Sollecito. Manager
Sollecito mentioned his concern about liability with private property. He said that the contract
still has to be signed and that he cannot allow MMED line workers to perform work on Xfinity
property without the contract executed by Live Nation.
Vice Chair Aptowitz questioned if it was a possibility that MMED could run the cable to the
Xfinity property and it would just sit there. Manager Sollectio answered yes, that is a
possibility.
Motion: To approve MMED to extend the fiber to the Xfinity property entrance at a cost
of $86,478.47 subject to an agreement in place with Xfinity that MMED does not do the
work and Xfinity has their own people run the fiber optic from the entrance to the
Emergency Response Area OR an agreement in place where the Town is indemnified and
Xfinity agrees to pay the Town
(Trowbridge/Aptowitz) Passes 311
Discussion of Community Promotions and Advertisement policy — This was tabled.
Citizens Comments — None
Motion: To enter into Executive Session at 6:55 PM for the following reasons and to
return to open session for a possible vote on Special Project 2022A
a. Review and possible approval of minutes of February 28, 2022 Executive
Session where Exemptions 2, 3 and 10 were declared
b. Pursuant to M.G.L. Ch. 164, Section 47D and M.G.L. Ch. 30, Section 21,
Exemption 3, to discuss strategy with respect to collective bargaining if an open
meeting may have a detrimental effect on the bargaining position of the public
body and the chair so declares
c. Pursuant to M.G.L. Ch.164, Section 47D and M.G.L. Ch. 30, Section 21,
Exemption 2, to conduct strategy sessions in preparation for negotiations with
nonunion personnel or to conduct collective bargaining sessions or contract
negotiations with nonunion personnel.
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d. Pursuant to M.G.L. Ch.164, Section 47D and M.G.L. Ch. 30, Section 21,
Exemption 10, to discuss trade secrets or confidential, competitively -sensitive
or other proprietary information provided, in the course of activities conducted
by a governmental body as an energy supplier under a license granted by the
department of public utilities pursuant to section 1F of chapter 164 and when
such governmental body, municipal aggregator or cooperative determines that
such disclosure will adversely affect its ability to conduct business in relation
to other entities making, selling or distributing electric power and energy and
the chair so declares
(Aptowitz/Trowbridge) Passes 3/0
Roll call vote: Delvecchio-aye; Aptowitz-aye and Trowbridge -aye
Respectfully submitted: Jacqueline Lee
Return to open session at 8:02 pm
Chairman DelVecchio welcomed everyone back to open session and asked if there was a
motion on MMWEC's Special Project 2022A.
Motion:
1. that the Town of Mansfield, acting by and through the Municipal Light Commission,
in accordance with St. 1975, c. 775, § 1 hereby votes and agrees to participate in
MMWEC's Special Project 2022A; and
2. that the Town of Mansfield, acting by and through the Municipal Light Commission,
in accordance with St. 1975, c. 775 § 1 hereby agrees to pay its pro rata share of the
costs of carrying out Special Project 2022A, as established by the MMWEC Board of
Directors in the Special Project Fund for such Special Project 2022A, which pro rato
share shall be based on the Town's participation in Special Project 2022A; and
3. that the Town of Mansfield, acting by and through its Municipal Light Department, in
accordance with St. 1975, c. 775 § 1 hereby agrees to execute, deliver and perform
its obligations under the MMWEC Battery Storage Project 2022A Power Sales
Agreement ("PSA"), substantially in the form of the PSA presented to the Municipal
Light Commission and made a part of the record of this meeting and authorizes the
Manager to execute the PSA at a time he deems it appropriate; and
4. directs the Manager to cause Mansfield Municipal Light Department to perform all of
the Mansfield Municipal Light Department' s obligations under the PSA and to take
any and all further actions the General Manager deems may be required to carry out,
give effect to, and consummate the transactions contemplated by this vote,
including, but not limited to, the execution of any other documents: and
5. that the Manager is hereby authorized and directed to make payments to MMWEC
calculated as set forth in the preceding paragraph 2; and
6. that the Manager is hereby authorized and directed to execute the Participation
Acknowledgement, a copy of which has been presented at this meeting and is filed
with the permanent records thereof; and
7. that any actions previously taken by the Manager, which are consistent with the
purpose of this vote, are hereby ratified and confirmed.
I further certify that the above vote was taken in a duly convened meeting which convened
open to the public; that notice stating the place, date, and time of the meeting was filed with
the City or Town clerk and a copy thereof was posted in the office of the City or Town cleric
or on the principal official bulletin board of the City or Town at least 48 hours prior to this
meeting, excluding Saturdays, Sundays or legal holidays, and that the official record of the
meeting was or will be made available to the public, all in accordance with G.L. c.30A
Sections 18-25, as amended. And, I make this vote that we are seeking the guidance of
Counsel that the intent is to bind Mansfield Electric and to not bind the Town of Mansfield.
Vote: Passes 3:0 (Trowbridge/ Aptowitz)
Motion: To adjourn at 8:05 pm (Trowbridge/ Aptowitz)
Vote: Passes 3:0
Respectfully Submitted: Nancy Griffin
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Date of Approval