HomeMy WebLinkAboutLight Comm Minutes 10/20/1997c'7 i[1!1 2
Board of Light Commissioners
Minutes of Meeting -�
October 20, 1997 ^. '� ' ``15� l T
Present: Chairman Colella, Commissioners Madan and Mahana
*Commissioner Robinson arrived at 8:1Opm
* *Commissioner Royle was absent
Meeting called to order at 7:40pm
MOTION: To approve minutes of October 6, 1997
Madan/Mahana Vote 3 - 0
Mayhew Seavey Enron Winter Period Purchases
The offer most attractive from Enron has already increased in price from $28.50 to
$29.25 a megawatt hour. This offer is still by far the best offer received. Mayhew
advised the Board that we are facing a situation in New England this winter which is
pretty grim. The availability of power at an economical price is scarce.
Millstone I, II, and III are still out of service and not expected to be back in service until
January, 1998. Maine Yankee is permanently out of service. There is a significant
shortage of energy in this region and the prices are 1/2 cent to one full cent higher than
comparable prices were last year.
Enron's 5 megawatts at $29.25 per megawatt hour will result in a cumulative savings of
$59,000 over a five month period.
Mayhew recommended that the Board purchase 5 mw from Enron at the price of $29.25.
Mr. Mahana asked if we could increase the purchase and buy 27 mw of power and realize
and even greater savings. Mayhew advised that Enron is selling "must take" power. You
must pay for 5 megawatts around the clock, whether it is used or not, so if you don't use it
you still have to pay for it. Mr Mahana stated that he is convinced that deregulation is not
to anyone's benefit.
Mr. Seavey stated that prudent responsible management of the portfolio of resources is
the best way to ensure power cost stay down. There is no simple answer or magic wand
that will drop the cost of power. Mr. Seavey stated that in ten years the cost of power
will be lower. Lowering power costs is a long term process. The transition from a
regulated monopoly environment to a deregulated competitive environment can not be
accomplished overnight. This marketplace and industry is enormously capital intensive
and has enormous amounts of debts. The economy as a whole would be severely
damaged if all that debt were thrown out the window.
The Manager stated that the reality of deregulation is that big industrial customers will
see a slight savings, residential customers will see an artificial dip initially, then prices
will go up and up and small commercial customers will be the hardest hit.
Mr. Seavey could not at this time recommend any long term purchases of power. It is his
opinion that their is just too much uncertainty in marketplace at this time. Mayhew
believes that after the first of the year, the marketplace will settle down and prices will
drop.
MOTION: To authorize the Manager to approve the purchase of 5 megawatts of
power from Enron for the winter period (six months) at a price of $29.25
per megawatt.
Madan/Mahana
Vote 4 -0
Mr Colella asked Mr. Seavey to explain to the public what the Board had just approved.
Mr. Seavey stated that the Board had approved a purchase of power for the next six
months (winter power period) for a price a little under 3 cents per kwh which will replace
more expensive power of 3.5 cents to 3.75 cents per kNvh during this six month period
which will keep the purchase power costs down and help keep the rates stable.
Merckens
The Manager advised the Board that he is working on a proposal to sell power to
Merckens at a price that would create some revenue for us and save some money for
Merckens. The Manager advised the Board that he has nothing concrete at this time but
if the plan crystallizes he will bring proposals to the Board.
Engineering Substation Plans
The Manager recommended that the Board request a statement of qualifications and
experience from various engineering firms as opposed to an R.F.P. After receiving these
statements, review all and select those firms that the Board would like to interview.
Once the Board selects a firm, then a contract would be negotiated.
Mr. Madan stated he did not like this idea, he wanted to do an R.F.P. and receive
competitive bids which will give the Board a better chance of getting a lower price.
The Manager stated if the Board was more comfortable with the R.F.P. approach, he
would sent out R.F.P's.
1 . 1 , -Tff
Five Purchase orders were submitted for the Board's approval:
1. Harris Computers PO #17641 in the amount of $7,150. This is to network the new
personal computers and transfer all data from the Gateway PC's to the Dell PC's.
Robinson/Madan
Vote 4 - 0
2, Vanyo, Inc. PO #17507 in the amount of $4,050. This is for 9 -23 Kv switches for use
in the GE substation yard.
3. Vanyo, Inc. PO #17508 in the amount of $2,099.85. This is for cutout and brackets to
replenish inventory.
4. WESCO PO #17504 in the amount of $3,675.80. This is for brackets, rods and
anchors to replenish inventory.
5. WESCO PO #17503 in the amount of $2,935.92. This is for lamps and photocells
again to replenish inventory.
Mahana/Madan
Union Contract Negotiations:
Vote 4 -0
The Manager advised the Board that Union Contract Negotiations were scheduled for
2:30 pm on Thursday, October 23rd. The Manager requested that Mr. Mahana and Mr.
Colella meet with him prior to this scheduled meeting. Mr. Mahana and Mr. Colella
stated they would meet with the manager at 2:00 pm on Thursday, October 23, 1997.
Amtrak Costs:
The Manager advised the Board that the contractor that had initially agreed to do the
boring under Central St has done all this work in Connecticut and Rhode Island, where
Amtrak owns the tracks in these states. However, in Massachusetts Amtrak does not own
the tracks, the MBTA does and this contractor can not do the boring or give us a price.
The Manager advised the Board that he would be looking for other contractors to give us
prices and he will relay this information to the Board.
To date the actual construction cost for the Amtrak project is about $14,000. The
Manager feels that there will be at least that much more plus whatever cost are required
for the underground boring on Central Street, plus engineering costs. The Manager
l indicated that the final cost would be close to the ballpark estimate of $60,000.
Industrial Park Customers;
At a prior meeting, the Board made a motion to bill all industrial customers for any
services rendered from the Electric Department which required overtime to be paid to the
employees. Texas Instrument requested that their primary service be killed so that they
could do work on their side. Texas Instruments expressed to the Manager their
dissatisfaction with being billed for the shutdown. T.I. has six accounts with the electric
Department and pays over $200,000 a year for electricity. The Customer requested that
the Board send a memo to all industrial park customers informing them of this new policy
of the Board.
The Board asked if TI had been notified of this policy prior to the work being done. The
Manager stated yes. The Board asked if the customer had requested a waiver, the
Manager stated no. The Manager stated that the customer did not object to the policy he
just feels that the Board should have notified the customers of this new policy.
Mr. Madan and Mr. Mahana both felt that this policy was a good policy, customers
should pay for services rendered on overtime. Mr. Mahana asked what other Electric
Departments did. The Manager said he would inquire with other towns and advise the
Board.
New Police Station Service:
The Manager stated that the Acting Town Manager had sent a memo regarding this issue,
however, it is now necessary for the Electric Department to move the meter from the old
service to the new permanent service and the Manager asked whether or not he should
refuse to do this until the matter regarding the bill is resolved. The Manager stated that
he did not want to hold up construction, he wanted a consensus from the Board regarding
whether or not to energize the service or wait until the bill dispute is resolved. Vfr.
Madan stated that he feels it is the contractor's responsibility to pay for the electricity.
The Manager stated that he wanted to ensure we had leverage to collect this debt
regarding the overdue electric bill. The Board stated that the Town was holding bond
money on this project from the Contractor. The Manager stated that he was satisfied with
the bond security and he would authorize the Department to energize the service.
Council on Aging Luncheon
The Manager advised the Board that Ray Gooley was presenting an Electrical Safety
Luncheon for the senior citizens at the Council on Aging this Friday, October 24th and
that the Board was welcome to attend this presentation.
Capital Improvement Program:
The Manager stated that he would like the Board to participate in a viewing of the
Department's equipment prior to the Manager putting together his Capital Budget. The
Manager suggested this be done either on a Saturday morning or at the end of the
working day. Mr. Mahana stated he preferred the end of the day. It was decided that
Monday,
October 27, 1997 at 3:00 pm would be a good date.
Communication System:
Mr. Madan asked if the Manager had any information regarding the installation of an
after hours communication system. The Manager stated that he was working on this and
explained that he was looking into obtaining three more lines with a ring down capacity
to an answering machine. The Manager stated he would provide more information at the
next meeting..
Delinquent Accounts:
Commissioner Mahana stated that he was led to believe that there is a State Law that
holds the owners of property responsible for any tenant's unpaid electric bills. Mr.
Mahana asked the Manager to look into this possibility because if we could make the
owners responsible we could collect a lot of this unpaid debt.
The Manager stated he would investigate this and report his findings at the next meeting.
The Next Meeting is scheduled for Monday, November 3rd at 7:30 pm
MOTION TO ADJOURN AT 8:55tn
Mahana/Madan
Clerk's Signature and Date
Vote 4 -0