April 5, 2010
Work Session
Present were: Mayor Grenier, Councilors Evans, Cayer, McCue, Landry, Rozek, Remillard and Poulin; absent was Councilor Danderson
Others present included: Chief Trull, Patrick MacQueen, Pamela Laflamme, Bill Gabler, David Bertrand, Paul Ramsey, Vice President of Energy Delivery at PSNH, media and public.
Mayor Grenier called the meeting to order a t 6:30 p.m.
PSNH
Mayor Grenier introduced Paul Ramsey who would brief the Council on PSNH issues and answer questions where possible. Mr. Ramsey stated that he has ties to Berlin and still has family here. PSNH was involved in the PPA bankruptcy negotiations because PSNH was owed over $3 million.
PSNH expressed concern about industry in Berlin and tried to build a wood fired power plant and the Legislature did not allow that to happen. PSNH provides the power lines to hook up third power producers. They are working with both Laidlaw and Clean Power on inter connection agreements; however that does not mean either will come to fruition.
In 2000, the State deregulated the power industry and PSNH was relieved from being obliged to buy power from others. A power producer can still file under PURPA the Public Utility Regulatory Policies Act of 1978, to compel PSNH to buy; however there is often not enough money in it.
Mayor Grenier questioned PSNH refusing to negotiate with Clean Power for a power purchase agreement and the report is that PSNH has entertained the same request from Laidlaw. Mr. Ramsey explained that Clean Power filed a complaint against PSNH with the Public Utilities Commission and there is a regulated process by which to deal with the CP request. PSNH maintains that they are not required to buy power from anyone. He went on to say that there is no contract with Laidlaw at this time; however discussions are ongoing. Clean Power has moved into a different forum unless they file under PURPA where they would have to purchase under the avoided cost rate. Mr. Ramsey acknowledged that in order for the power plant to get financing, they have to go to a bank and show a business plan that says power can be sold
to cover debt and still make money. In this market, it would be hard to convince a financial institution that there will be a guaranteed price.
In response to Councilor Evans’ question, Mr. Ramsey noted that he did not know what it takes to have a qualifying facility under PURPA. Councilor Evans then asked what the incentive is for PSNH to enter into a purchase power agreement and Mr. Ramsey indicated that power can be sold to anyone in New England and it does not have to be sold to PSNH. It is more cost effective to put the power where the load is; however power can be transmitted to who buys it once the power lines to be used are worked out. Power can be sold in a variety of modes such as guaranteed power. In such a mode, there would have to be a backup power producer making power available if there were an outage. Power can also be sent on an as needed basis. Each utility determines their needs and goes to ISO New England pool to buy the
least expensive power that will fill the need.
Councilor Landry said that we hear a lot about the queue and he asked how it works. Mr. Ramsey replied that it is on a first come first serve basis as determined by ISO New England. They determine what grid is needed to connect and they would be responsible for finding power if that plant does not operate. In remote areas where the load is not there, power lines need to be in place. PSNH could invest in additional lines but if the need is not there, then the cost would be passed on to customers. At this time there is still grid capacity and the first in line won’t have to pay for additional lines but when the grid is filled, whoever wants to come on will have to pay for expansion.
Councilor Landry asked about Mr. Bartoszek’s reference to a term sheet with PSNH and Mr. Ramsey speculated that it is the pre cursor to an agreement that brings the framework to an attorney.
Councilor Cayer questioned whether it is common for PSNH not to want to agree to negotiate. Mr. Ramsey reported that PSNH does not take most offers because they have to look for the benefit it would have for their customers; if it is not beneficial to customers, there is no point of entering into a contract.
Councilor Remillard asked whether a first position in the queue can be bought out and Mr. Ramsey did not know the answer. Councilor Rozek asked about the Coos Loop and whether that is unique to Coos County and why it was put in that way.
Mr. Ramsey speculated that it was created at a time when there were a lot of mills that required a lot of power. The loop was created because if there is problem at one end of the loop, power can still come from the other end. There were likely issues with land rights as well. Councilor Rozek asked if Hydro Quebec were to come, would they bypass the existing lines. Mr. Ramsey explained that they could not tie in to current lines because they need bigger lines that are not compatible with those in existence.
Councilor McCue asked if there is a distance range in locating power plants that is considered efficient. Mr. Ramsey stated that there are some “line losses” but power can be transmitted from Canada to New England. Councilor McCue asked what PSNH is since deregulation and Mr. Ramsey summarized that PSNH is a transmission and distribution company whose job is to deliver the power.
Councilor Cayer asked about the process of trying to get PSNH to deliver on PURPA. Mr. Ramsey indicated that PSNH has made an argument that under deregulation, PSNH should not be forced to buy power. They are asking for clarification because Federal law seems to be out of sync with the intent of state law.
Councilor Cayer asked about the advertising done for PSNH and he made the point that, as a customer, he did not feel he should be paying for that. Mr. Ramsey noted that some of the advertising is safety related; other advertising is paid for by stockholders, not ratepayers. Mayor Grenier confirmed that rates are closely looked at by the PUC who set the rates. He thanked Mr. Ramsey for coming and answering questions. In closing Mr. Ramsey stated that the power business is not easy to understand if you don’t work in it.
Assistant Fire Chief Discussion
Mayor Grenier asked if there were still questions or concerns about the proposal for an assistant fire chief. Councilor Rozek commented that he went to the firehouse to see firsthand the issues the fire chief is faced with. He presented a list of 27 dilapidated structures on the east side and asked how long it would take to review those 27 properties and Chief Trull responded that it will take 13 months with an assistant chief. Mayor Grenier stated that he is concerned about doing only two per month.
Chief Trull explained that in addition to that work, the assistant would be doing other inspections, training and other work as well. There are 330 codes to consider.
Mayor Grenier noted that some of these buildings are dangerous and if he is to be convinced to hire an assistant chief, the buildings will have to be made safe or come down. We don’t want poorly managed properties to endanger innocent people. Chief Trull stated that his department has made a lot of headway on the dilapidated structures and has kept the City out of litigation in the process. The goal is to increase progress by 5% in the next year.
Mayor Grenier stated that the Council may disagree on how to make Berlin better but they are united on fixing the dangerous housing stock. The economics on these buildings don’t work and they are still allowed to be in operation.
Councilor McCue confirmed that the projected revenues from the fire department fees ordinance can be met. He asked about the $5,000 for sick leave and Mr. MacQueen explained that if someone within the department promotes to another union those are the days that would be lost. Councilor Landry indicated that he struggles with putting a price on promoting. Mr. MacQueen established that he did not want to proceed with the hire if it will not be funded in the next budget.
Councilor McCue questioned the probationary period and Mr. MacQueen stated that it is outlined in the OPEIU contract; however there is performance associated with the job. Mayor Grenier added the item to the agenda for April 12
Ordinance 2010-04
Mr. MacQueen explained that this came from the inspections division who say that some of the neighbors are taking over the former courthouse parking area and parking overnight. There have been problems getting plowing done and heating oil delivery. The ordinance would not allow unauthorized overnight parking.
Respectfully Submitted
Susan Tremblay
Administrative Assistant
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