HomeMy WebLinkAboutLCMIN10/19/2011Mansfield Municipal Electric Department u;: r— [ �, E C
Minutes of Light Commissioners Meetingl r n 'ICE
October 19, 2011
FR 12 A 11: J4
Present: Chairman George Dentino; Vice Chairman Kevin Moran; Clerk,Qlivier Kozlowski;
Commissioner Douglas Annino; Commissioner Jess Aptowitz; Director Gary' Baliiri Staff
Accountant Ken Thomson and Town Manager William Ross
Light Commissioners Meeting
The meeting was called to order at 7:30 PM. Chairman Dentino stated that this meeting was
being televised and taped by Mansfield Cable Access.
Solar Energy Net Metering Tariff- Public Hearing
Clerk Kozlowski read the public hearing notice into record.
Motion: To open public hearing. (Aptowitz/Kozlowski) 5:0 passes
Director Babin reviewed the draft Net Metering Tariff with the Board. He explained that the
Net Metering Recovery Surcharge is designed to replenish revenues from net metered solar
customers to offset any loss in distribution revenues. Any customer with a Class II Net
Metering Facility would be billed a surcharge every month equal to $1.15/kWh multiplied by
the billing demand for that billing period.
Commissioner Moran had questions about the tariff itself. After discussion, his questions
have been answered and he is in favor of the proposal.
Commissioner Kozlowski had a few questions about the revenue potential of the solar facility
to be installed on the landfill and for which MMED issued an RFP. Director Babin indicated
that the cost of the electric output from the landfill facility would be handled through a
Purchased Power Agreement (PPA) and not through the Net Metering Tariff.
Chairman Dentino had questions about net metering credits. Director Babin reviewed the
definitions of the different charges and credits. Chairman Dentino also asked about tariff
variables and wondered if the town is being made whole in all classes. Town Manager Ross
said it was and his suggested clauses would ensure that.
Commissioner Aptowitz said that he has concerns about keeping up revenues to maintain
MMED's infrastructure. He wanted to know if the tariff system would incur additional billing
system procedures, to which Director Babin said there would be so few bills they would
probably be done by hand but could eventually be incorporated into the billing system.
No individuals came forward with public comments at the meeting and Director Babin said he
received no inquiries about the proposed tariff.
(� Motion: To close the public hearing. (Annino/Kozlowski) 5:0 passes
Motion: To approve the Net Metering Tariff as presented by the MMED staff.
(Kozlowski/Moran) 5:0 passes
Financial Report for August 2011 — Director Babin reviewed the highlights from the
Mansfield Municipal Electric Department's FYl l financial statements through August 2011.
in particular, Director Babin pointed out:
1) Net Income — Net operating income year -to -date through August is $677,851 while
non - operating expenses are $8,606.
This figure has also been adjusted to account for the FY12 over - collection of
Generation Charge revenues of $272,314.
2) Cash Position — MMED's operating cash position through August 2011 was
$8,756,288, which, when adjusted for an Accounts Receivable of $186,783 for monies
owed to MMED by its customers for an under - collection of the Generation Charge,
makes available operating cash $8,943,071.
Operating cash was $7,023,592 for the same period in FY11 which, when adjusted for
an Account Receivable of $275,918 for monies owed to MMED from customers for
under - collection of the Generation Charge, made available operating cash $7,299,510.
3) Generation Charge Accounts Receivable — This item reflects as an asset the under-
collection of the Generation Charge, which is money owed to MMED by its
customers. Through August, that receivable stands at $186,783.
This amount is not calculated by fiscal year but reflects the over /under collection of
the Generation Charge since the Generation Charge was introduced and started being
collected in the new rates in January 2008. Any over- collection or under - collection of
the Generation Charge over a 3 month period is then carried over and reconciled in the
calculation of the Generation Charge for the following quarter.
4) Energy Sales — Energy sales for August 2011 are up 0.4% from August 2010. The
rate of growth in sales has declined over the last 12 months, due in part to the closing
of the ADM Cocoa facility.
5) Depreciation Fund — MMED's depreciation fund balance stands at $6,481,638. This
money will be used to help offset the cost of the East Mansfield substation while also
supporting other capital improvements.
The Board had no questions on the financial statements.
Questions and Comments - There was no one signed up for Questions and Comments.
Motion: To adjourn the Light Department meeting and resume as Board of Selectmen.
(Aptowitz/Moran) 5:0 passes
Meeting resumes at 8:40 PM.
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Motion: To approve the minutes of the September 21, 2011 Light Commissioner's meeting as
presented (Aptowitz/Moran) Passes 5:0
New Headquarters for NEPPA — Director Babin said that the Northeast Public Power
Association ( NEPPA) Board of Directors has authorized consolidating all of NEPPA's
management and training facilities under one roof, to be located on land owned by the
Littleton (MA) Electric Light and Water Departments. In order to fund construction the
NEPPA Board authorized a special assessment to all member utilities equal to one year's
dues, which for MMED would be $15,086, and that it could be paid in one year or over 3 year
installments. He pointed out that this was a voluntary contribution.
Commissioner Kozlowski had questions about the assessment and dues. He wanted to know if
the dues would go up to support the new facilities. Director Babin said they would not and
that the assessment was a one -time fee.
Commissioner Moran had questions about the assessment amount as well. Director Babin
indicated that the vote of the Board to approve NEPPA's participation in the facility by
authorizing entry into a lease was only made in the last month. Mr. Ross believes the
assessment is reasonable and agrees with Director Babin that MMED should contribute.
Upon review of a spreadsheet that had been included in the Board package which outlined all
the assessments for municipal light departments that were members of NEPPA,
Commissioner Aptowitz noted that Mansfield has one of the highest assessments and that the
Mohegan Tribal Authority is involved with the organization as well and is being assessed a
share of the cost.
Commissioner Annino has questions about the assessment, dues and lease with The Town of
Littleton that Director Babin addressed.
Chairman Dentino asked about the costs of trainings and special events. He asked exactly
what MMED'S dues pay for and what the value to the town. Director Babin spoke about the
niche market that NEPPA fills for training specifically geared to municipal utilities. He also
briefly outlined the activities and information that the dues to the organization pay for.
Chairman Dentino would like to continue this topic to another meeting until there is more
information available regarding the organization and its membership and the costs of alternate
training options.
Mr. Ross suggested that they hold this item until November for additional comments.
Rumford Avenue Improvements — The MMED staff has estimated the cost for
improvements to the Rumford Avenue area next to Route 106 for the 2W Rumford Avenue
development at that location.
Mr. Ross recapped a prior memo he sent to the Board which outlined the costs of removing
poles, installing underground facilities and modifying the electric configuration in that area to
make it more visually appealing.
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Commissioner Annino stated that he is abstaining from discussion or voting on this issue as
he is working for the developer on this project.
Commissioner Moran and Aptowitz had questions about the cost splitting ratio on this
particular project. It is located right next to the train station in an area that the town will be
doing work on in the next year or so.
Mr. Ross will meet with the developer to discuss costs for this project.
East Mansfield Substation Update — The MMED staff updated the. Board on the status of
the East Mansfield substation project. The staff has consulted with the abutters for the color
of the perimeter wall and those abutters agree with the Board that Pueblo gray is preferred. hr
addition, the construction activity for the duct line on Bird Road is nearly complete.
Director Babin said that construction of the sub station is expected to begin in December 2011
or January 2012; transformers will be delivered in the spring of 2012 and the substation is
planned to be on line by July 1, 2012.
Motion: That the exterior wall of the East Mansfield substation be specified as Pueblo.
(Moran/Annino) 5:0 passes
It was agreed that the next meeting of the Light Commission will held on November 16, 2011.
Motion: To adjourn the Light Commissioners meeting at 9:41pm
(Kozlowski) 5:0 passes
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Signature of Clerk Date of Approval