HomeMy WebLinkAboutlc_06202012 Mansfield Municipal Electric Dimgwigo
� Minutes of Light Commiss t 01..014 OFFICE
June 20,2012
11111 SEP %W A ' 01
Present: Chairman George Dentino, Vice Chairman Kevin • rk Douglas Amino;
Commissioner Jess Aptowitz; Commissioner Olivier K �-� -Qary Babin; Town
Manager William Ross
The meeting was called to order at 7:00 PM. Chairman Dentino stated that this meeting was
being televised and taped by Mansfield Cable Access.
Motion: To approve May 23`d minutes. (Moran/Annino) 5:0 passes
Cost of Service Study and Rate Design—Director Babin provided in the Board package an
initial analysis performed by Mayhew Seavey of PLM as the first step in his review of
MMED's existing rates and formulation of a new rate structure. Mr. Seavey was present at
the meeting to present his initial results.
The primary purpose of the meeting was for Mr. Seavey to present his analysis of how the
retail rates implemented on January 1, 2008 have performed. In addition,the MMED staff
requested that the Board provide direction on how they wish the study to proceed in terms of
rate designs for specific classes of customers.
A few of the significant items that Mr. Seavey also discussed included:
1) Development of a five year model to determine MMED's financial requirements. This
will establish the amount of cash needed to support the MMED capital and operating
budgets in order to design rates to meet those objectives.
2) Consideration of how to utilize rate stabilization money that MMED currently has
deposited at MMWEC, and possibly using some level of operating cash, when
designing a new rate structure.
3) Discuss the impact on retail rates of MMED's declining debt with MMWEC for
projects in which MMED holds an entitlement. This debt will be reduced significantly
in 2017 and zero out in calendar year 2021. That debt schedule is as follows:
Debt Service Billed
Year ` Through Project Entitlements
2013 $4,666,000
2014 $4,393,000
2015 $4,055,000
2016 $3,873,000
2017 to 2020 $4,123,000
2021 Debt service ends
4) Discuss the impact of the increasing number of solar installations on MMED power
supply purchases, energy sales and financial results.
Mr. Seavey informed the Board that the rates have performed well and the rates of return by
customer class included in the rate design appear to be met. He also noted that solar
development in the Town could have a positive financial impact under the current rates in
effect for commercial customers and the Net Metering Tariff that MMED currently has in
place.
Commissioner Moran asked about government controls on the development of solar
installations. Director Babin then discussed the effects of the MMED's net meter tariff on the
use of solar energy.
Commissioners Moran and Aptowitz stated that Mansfield doesn't have the most competitive
electric rates for the commercial customer class and they would like to see that addressed so
that it does not inhibit commercial growth in the industrial park.
Commissioner Kozlowski had a few questions about the debt service and the possibility of
capital improvements affecting that timeline. He also asked about different rate classes and
how MMED's rates are structured compared to other providers.
Director Babin stated that MMED structures its rates in accordance with industry standards
and the primary difference between residential and commercial rates is the use of the demand
component for commercial customers.
East Mansfield Substation Construction—Director Babin reviewed the information he
provided in the Board package and stated that to date MMED has expended approximately
$4.65 million based on invoices processed and booked to the project. The MMED staff
anticipates processing an additional $1.9 million of payments,bringing the estimated final
cost of the project to$6.55 million.
Director Babin then reviewed a summary of all the bids received for purchase of equipment
and construction on the project. There are a total of 6 different bids issued for the project and
the summary provided showed all of the prices submitted for each of the bids along with the
initial project estimate for each project.
He also noted that at this point it appears the substantial completion date of the project will
extend into mid-August.
The perimeter wall surrounding the station has proven to be particularly difficult to construct.
Because it is a"one of a kind"type of installation designed specifically for this application, it
has proven more difficult for the contractor to construct. Completion of the perimeter wall is
necessary for security and the safe operation of the station and will delay the in-service date
of the project until such time as it can be completed.
Ryan Construction has worked diligently to expedite the construction of the perimeter wall
but the combination of an extremely tight site (limiting the number of contractors who may
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work there at one time), periods of poor weather, delays in equipment delivery, and the
complexity of the design of the wall itself have slowed progress.
Director Babin assured the Board that MMED has adequate firm system capacity to make it
through the summer and the extended completion date of the station should not have a
material impact on MMED system reliability.
He added that abutter landscaping has been completed and the residents appear very pleased
with the number and types of plantings installed.
National Grid is expected to install the transmission line connection to the structures in the
station during the week of June 18.
Site work has proceeded well with the transformers, switchgear, sound wall, structural steel
and switching devices already installed.
Upcoming tasks include: electrical wiring of the substation components at the 115 kV and
13.8 kV level; wiring of the switchgear; functional testing of all components to ensure proper
operation of the transformers, relaying and circuit breaker equipment in the switchgear
enclosure; integration of the operational components of the station with MMED's remote
SCADA system for supervisory control of equipment, data acquisition and status of
equipment; and completion of the drainage system and grading to final elevation. The entry
way to the station consisting of the driveway and gates will be at the tail end of the project.
Final landscaping will not take place until the fall due to the delayed schedule.
Old and New Business - Commissioner Aptowitz asked about the progress of updating the
MMED website. Mr. Babin has been talking with the MIS Dept. and will report on it at the
next meeting.
Commissioner Annino asked if the town has its capital projects listed on the website. Mr.
Ross does not believe so but will look into it.
Motion: To adjourn the Light Commissioners meeting at 8:10pm.
(Aptowitz) 5:0 passes
Signature of Clerk:
V` 22 (Z
Olivier Kozlowski Date of Approval
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