HomeMy WebLinkAboutLC_01_27_2016Mansfield Municipal Electric Department LU
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FICE
Minutes of Light Commissioners Meeting.,
January 27, 2016
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21 A I
Present-, Chairman Jess Aptowitz, Vice Chairman Olivier Kozl6oVw,, Iftank
Delvecchio, Commissioner Doug Annino, Financial Assistant aoquenne" tee' man Town
Manager William Ross
The meeting was held at the Mansfield Town Hall Room 3AB and called to order at 7:07 PM
followed by the Pledge of Allegiance. Chairman Aptowitz then asked for a moment of
silence in honor of Dave Wellman who recently passed away. He had worked for the Town
for 47 years at the DPW and retired 6 years ago.
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. Chairman Aptowitz
stated that this meeting was being, televised and taped for future broadcast.
Citizens Comments: none
Proposal from MMNVEC for a Capacity Hedge Opportunity- Town Manager Ross told
the Board that he received information from MMWEC about one and a half weeks ago
regarding a Capacity Hedge Opportunity. He said that a decision needs to be made this week.
He explained that MMED is required to maintain a certain level of generation capacity,
approximately 62 megawatts of capacity. MMED owns pieces of several generation plants
which make up approximately 40 megawatts. For the remaining 20-22 megawatts, MMED
works with MMWEC and the clearing price on this capacity has been going up. Town
Manager Ross clarified this doesn't buy power, only generation capacity. He told the Board
that there are large aging plants that have been retired which mean less capacity because the
output is now gone.
MMWEC has analyzed this hedge and is recommending that MMED purchase 14.7 MW
(which is more than half of what is open) at a contract price of $7.75 per kW. Mayhew
Seavey, form PLM, has assessed this proposal and is recommending that MMED buy 10 MW
and believes this is a good price.
Town Manager Ross also mentioned the transmission fine from Quebec but said that it is
years down the road. He said that if the clearing price is $11 then MMED would save
$573,300 with this hedge but also said that it does come with risks. Mayhew Seavey believes
this is a good hedge so there's more than a 50150 chance that the Town would benefit.
Former MMED Director Gary Babin also thought this was a good opportunity. Town
Manager Ross told the Board that he finds Mayhew Seavey to be accurate and is in favor of
purchasing 10 rather than 14.7 MW.
Commissioner Kozlowski questioned why southeastern Massachusetts seems to be getting hit
the hardest. Town Manager Ross answered that it is because of the plants that are going off-
line. Commissioner Kozlowski asked about additional sourcing such as other plants, solar,
etc. and wondered if they were in the foreseeable future. Town Manager Ross said he has had
conversation with Mayhew Seavey about MMED possibly purchasing and installing a
generation unit. Mr. Seavey is still running numbers on this and the payback is usually 5-6
years. MMED would reduce their capacity requirements with this and Mr. Seavey warned
against putting all your apples in one cart. Town Manager Ross said that Mr. Seavey will be
coming back to the Board with more suggestions at a later date.
Chairman Aptowitz asked if they chose to purchase 10 MW instead of 14 MW if it would be
at a higher price. Town Manager Ross responded that MMWEC said it would be the same
price.
Chairman Aptowitz noted that there was not a full Board this evening but with all due respect
to Commissioner Dentin who was out of Town., the Board would be making a decision
tonight.
Town Manager Ross told the Board there are two downsides to this hedge. The first is if
someone comes to southeastern Massachusetts and builds a lot of generating units really
quickly but he believes this scenario to be unlikely. The second is if Canada's -transmission
line is built thru Vermont and into Massachusetts but this is probably 4-5 years away.
Town Manager Ross reminded everyone this is not for energy but just for capacity. Then
there was a discussion about if the costs go down then the ratepayers will be paying more than
they could have been paying. The other scenario is if it goes up to $11 then the ratepayer
would be paying significantly less.
Motion: To purchase 14 MW of Forward Capacity at a purchase price of $7.75 per kW
(Kozlowski/Annino) Fails 0/4
Clerk Delvecchio pointed out that Mayhew Seavey recommended purchasing IOMW not 14
MW. The original motion was then amended.
Motion: To purchase 10 MW of Forward Capacity at a purchase price of $7.75 per kW
and to authorize Town Manager Ross acting in his capacity as Light Department
Manager to so inform MMWEC
(Kozlowski/Annino) Passes 4/0
Old/New Business -
Clerk Delvecchio- none
Commissioner Annino- none
Vice Chairman Kozlowski commented that he was intrigued by the proposal of local
generation and looks forward to hearing more about that.
Chairman Aptowitz told Town Manager Ross that he would like to schedule a full meeting as
Light Commissioners. He also inquired as to whether a drive thru for the streetlights is being
done every quarter. Town Manager Ross said he would talk to Line Foreman Tom Weir
about that.
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-M-otion*. To adjourn at 7:40pm
Passes 4/0
Respectfully submitted: Jacqueline Lee
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Signature of Clerk Date of Approval