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HomeMy WebLinkAboutLight Comm 04/11/1983BOARD OF LIGHT COMMISSIONERS MINUTES OF MEETING APRIL 11, 1983 PRESENT: Chairman Dunn, Selectmen Levine, McNair, D'Onorfrio, Wills Electric Light Manager, John Larch and Office Manager Jean Nichols. 7:40 PM Meeting called to order. Minutes of February 14, 1983, Approved. McNair/Wills VOTED: 4-0. Minutes of March 8, 1983, Approved. NcNair/Levine VOTED: 3-0 Financial Reports Mr. Anthony Pietrafitta of Peat, Marwick, Mitchell & Co. reviewed the financial statements prepared by the Office Manager and commented. Selectman Wills noted that we have a Depreciation Fund and a Rate Case Fund and questioned whether the Department of Public Utilities recommends that they be held in separate accounts. Mr. Pietrafitta stated that there is a requirement that the Rate Case Refund be held in a separate account. The Town Accountant who was present noted that there are separate accounts on the town books but they are not held in separate checking accounts. John Larch said he spoke with Harold Bertolucci of the Department of Public Utilities and he recommended that a separate bank account be maintained for the Depreciation Fund. Selectman D'Onorfrio questioned a better rate of return on interest if the two accounts were co -mingled. John Larch noted that the interest does not go back to the light depart- ment but is returned to the town in the General Fund. MOTION: To take under advisement the co -mingling of the Rate Case Fund and the Depreciation Fund and bring it up at the next meeting. Wills/D'Onorfrio VOTED: 5-0 Auditor's Management Letter Mr. Pietrafitta reviewed and commented on the Management letter from the June 30, 1982 audit. He noted that the fuel adjustment should be revised to include the defined time period for the fuel adjustment. Also if we are goind to adjust the amount billed, it should be made a part of the fuel adjustment clause. He felt that when the rate study is completed it should address this matter. Selectman Wills questioned computer capability of keeping history files on accounts. Jean Nichols stated that the computer is only capable of a hard copy history. Mr. Pietrafitta pointed out that it was recommended that financial statements be prepared on a monthly basis. BOARD OF LIGHT COMMISSIONERS MINUTED OF MEETING APRIL 11, 1983 Page 2 Chairman Dunn thanked Mr. Pietrafitta for his time and effort John Larch noted that the Office Manager had expended considerable time and effort in preparing these reports and commended her. MOTION: To have the Electric Department Manager use this as a check list and report to the board on the status of improvement on a monthly basis. Wills/no second. Selectman D'Onorfrio noted that he does not agree with this motion-' and would like John Larch made a study and compile a report for next meeting, also that they would like to have it some time before the meeting in order to consider the report. Cost of Service Study Report Dave Chodat and Steve Ruback reviewed their Cost of Service/Rate Study and noted two corrections on the first page $1,748,326 should be $1,474,164 and $1,636,742 should be $1,362,571. John Larch explained to the board that their purpose in being here was to explain their methodology in arriving at new rates. Dave Chodat noted that Exhibit 1 was based on a 6% rate of return for all rate classes. Exhibit 2 was based on giving a reduction to everyone except for the consumer with the worst rate of return. Exhibit 3 was the recommended rate showing that there would have have to be allowed approximately a 30% increase in the Security Light rate and approximately a 20% increase in Municipal Electric Heat with a 20% decrease for the high tension users. Exhibit 4 was based on a limit increase to any one class of 15%. Selectman Wills suggested that the high users compensate for the commercial heating rate deficiency. Selectman Levine questioned the recommendation of Exhibit 3 over Exhibit 4 when no one in Exhibit 4 has to bear the burden of a drastic increase which in Exhibit 3 is not equal. * MOTION: To accept Exhibit 4 with 2 changes (1) to reduce the municipal electric heat revenue adjustmed from 15% to 0% and (2) take the $26,010 of municipal electric heat excess cost and include it in the cost of high tension users which would result in less of a reduction in the high tension users. Wills/Levine VOTED: 3-2 BOARD OF LIGHT COMMISSIONERS MINUTES OF MEETING APRIL 11, 1983 Page 3 Old Business Fuel Adjustment John Larch noted that Point Lepreau has come on-line and we are feeling the effect. Based on January and February actual power bills we have collected in excess of $90,693 in fuel. We estimate that we are going to collect $112,000 based on bills for March. Rathan than let this keep going we should refund the excess. There are 3 options (1) to take the excess and refund it in one month (2) take excess and set a level fuel adjustment base for 3 months (3) set the level fuel adjustment but spread it over a 6 month period. John recommended Option 2 which would result in a level fuel adjustment of $.0219 for 3 months. * MOTION: To accept Option 2. McNair/Wills VOTED: 5-0. Street Lights John Larch stated that there are samples of high pressure sodium street lights installed on Park Street. Selectman D'Onorfrio noted that there are many street lights out on West Street. John Larch pointed out that the problem with so many turned off it is difficult to know when one is burnt out. John also noted that because of the workload and man power availability he should be able to install about 600 lights this year doing side streets initially. John Larch reported that the budget is not complete, some information is missing but should be ready for the next meeting. John Larch stated that MMWEC requires an official vote of the board designating him as a voting representative to MMWEC. * MOTION: So moved. Levine/Wills VOTED: 5-0. * MOTION: To name the Town Manager as the alternate voting representative. Wills/Dunn VOTED: 5-0. Selectman McNair questioned John Larch if he had been able to check on the installation of individual meters at Bristol Arms. John replied that he has been unable at this time. Selectman Levine stated that there has been a problem with the industrial park firm being billed for street that are not on, and advised that it might be wise to get in touch with the industrial park management. Chairman Dunn asked where we stand on excess profit and asked John Larch for a recommendation. John reported that we made an excess profit of $212,513 and recommended that in the interest of good management and in the interest of not having a confrontation with the Department of Public Utilities we should agree to return it to the customers rather than try to work it into the fuel adjustment. BOARD OF LIGHT COMMISSIONERS MINUTES OF MEETING APRIL 11, 1983 Selectman Dunn noted that a six month pay -back should be considered because it was collected over a 6 month period. * MOTION: The light department manager make a indepth study and make a recommendation to the Commissioners on the fastest way to return the money to the customer, and the Manager notify the commissioners as soon as the rate study is complete and call a special meeting. D'Onorfrio/McNair VOTED: 5-0 John Dunn noted with regard to the street lighting program the Finance Committee recommends that the town pay the street lighting account through funds of the Electric Department and to include this amount in the payment in lieu of taxes. John Larch noted that if that is how the commission feels we can do it with the income in 1983. * MOTION: That we make a motion at town meeting to recommend a payment in lieu of taxes of $217,000. Wills/D'Onorfrio VOTED: 4-0. New Business John Larch requested authorization to transfer $132,689.51 from the Operating Fund to the Depreciation Fund and to transfer from the Depreciation Fund to the Operating Fund the amount of $159,158.47. * MOTION: Move to authorize these transfers. McNair/D'Onorfrio VOTED: 5-0. John McNair requested John Larch to contact the DPW with regard to School Street to correct the signal lights and allow for a delay in the yellow and green. * MOTION: To adjourn the meeting. McNair/Wills VOTED: 5-0. Meeting adjourned at 11:-5