MUNICIPAL ELECTRIC POWER ADVISORY BOARD
JOINT MEETING WITH BOARD OF SELECTMEN
Minutes
December 14, 2006
HMLD 6:00 p.m.
Members Present: Chairman Robert Hamer, and Members David Cotton, Donna Fitch, Peter Liddy, and John Shepherd.
Selectmen Present: Chairman David White, and Members Kim Ferguson, Ken O’Brian, and Joe Sullivan.
Also Present: Brian Bullock, Town/ Light Manager, Jacquelyn Kelly, Assistant Town Manager, Michael Flagg, General Foreman, Diane Mero, Utility Specialist, Margaret Donaldson, Office Manager
Minutes
On a motion by Mr. Shepherd, seconded by Mr. Liddy, the minutes from the meeting held on June 14, 2006 were unanimously approved as written.
CY 2007 Budget
An overview of the CY2007 Operating and Capital Budget was presented by Mr. Bullock, Ms. Kelly, and Ms. Mero. The proposed budget includes a decrease of $.01 in the Power Cost Adjustment factor. The cost of bulk power is expected to moderate over 2007. The PCA decrease is expected to adjust for this moderation and will result in the Department basically breaking even at the end of 2007. An average customer using 500 kilowatt hours per month will see a $5.00 decrease in their bill; likewise, a residential customer using $1,500 KwH will save $15.00 per month.
A decrease to the Small Commercial Rate is also being proposed to bring this class of customer more into line with area energy providers. Because of the decrease in rate and the PCA decrease, most Small Commercial Customers will see an 11% reduction in their monthly electric bill. Some of our small commercial customers are Holden Nursing Home, Brooks Drug Store, and Miles Funeral Home.
Mr. Flagg reported that the the Department’s major capital project is the construction of the new Bullard Street Substation. Major equipment has already been purchased. The on-site improvements are being bid out and completion of the construction is expected by last June 2007.
After further discussion, on a motion by Ms. Fitch and second by Mr. Shepherd, the Light Board voted to endorse the Small Commercial Rate Decrease and recommend it to the Board of Selectmen, which will discuss the Small Commercial rate change at the upcoming meeting on Monday, December 18, 2006. The 2007 Budget will be taken up by the Selectmen at the January 2, 2007 meeting.
Policy Changes
Mr. Flagg discussed three policy changes that would be implemented as part of the 2007 Budget. The rate charged for installation of private lighting has not been changed for fifteen years (since 1991). These rates apply to town-installed lights only; most private lighting is installed by the owner.
On a motion by Mr. Liddy, second by Mr. Cotton, the Light Board unanimously adopted the new rate for private lighting and will recommend same to the Board of Selectmen.
The charges for installation of new electric services (meters, wires, poles, etc.) will be on an actual cost basis for time and materials. The consumer will be required to 75% of the estimate prior to work being started with the balance due 30 days after the final bill is issued.
Payments for temporary meters ($10) are due prior to installation of the meter by town forces. These changes to policy reflect actual costs and prevent the rate payers from subsidizing private installations.
Customer Service/ Community Outreach
Ms. Donaldson discussed the envelopes distributed through the Light Bills for donations to the Welcome Aldrich Fund. So far, the Department has received over $5,000 in donations.
Research and Development
Mr. White suggested that money be earmarked in 2007 to look at providing municipal telecommunications services (such as Cable TV). It was agreed to include $25,000 for this purpose.
After further discussion, on a motion by Mr. Shepherd, second by Ms. Fitch. the Light Board unanimously approved the 2007 Operating and Capital Budget as presented and recommended it to the Board of Selectmen for adoption.
Hedging Proposal
Mr. Bullock explained a power hedging proposal that is aimed at stabilizing and reducing the cost of power to the Department and thus stabilizing rates.
Adjournment
There being no further business, the Municipal Electric Power Advisory Board meeting was adjourned by consensus at approximately 8:30 p.m.
Approved: May 23, 2007
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