MUNICIPAL ELECTRIC POWER ADVISORY BOARD
Minutes
December 15, 2009
HMLD 6:00 p.m.
Members Present: Peter Liddy, Chair, Scott Carlson, David Cotton, Donna Fitch, Gary Harrington, Tom Runstrom and John Shepherd
Selectmen Present: Kim Ferguson, Ken O'Brien, Anthony Renzoni, and Dave White
Staff Present: Brian J. Bullock, Town/Light Manager, Jackie Kelly, Assistant Town Manager, James Robinson, Light Manager (designee), Margaret Donaldson, Office Manager, Mike Flagg, Superintendent
Chairman Liddy called the meeting to order at 6:00 p.m. The primary purpose of the meeting was to review the draft CY 2010 Operating and Capital Budget. Mr. Robinson passed out spreadsheets on energy deliveries, KwH, and monthly peaks. The Daily KwH deliveries from December 2007 through October 2009 clearly showed the town-wide power outage which occured as a result of the December 2008 Ice Storm. The KwH Deliveries from December 2005 and projected through December 2010 show a relatively steady decline in the level of energy deliveries through 12/09 and projected through 12/2010. The Peak MW spreadsheet reflects a decline in the level of the summer peak in energy usage as well.
CY2010 Operating and Capital Budget
The Board had received copies of the draft 2010 Operating and Capital Budget along with a cover memo detailing some of the highlights. Mr. Robinson explained that the manufacturing facility at the Holden Industrial park Rexam/Precise Engineering would be closing its facility by the end of December 2009. The closing of one of the town's largest general services customers, will reduce the Department's energy sales, compared to 2009 by about 5%.mm
Although purchased power expenses are expected to decrease as well, fixed costs will be increasing due to the Berkshire Wind Project which will become operational in mid 2010, and an expected increase in network transmission rates.
Administrative and General expenses show an increase due to the addition of a separate Light Manager position and a transition period in 2010. There is also a line item for the purchase of a new hybrid vehicle for the Light Manager. Previous Managers have had the use of a town vehicle.
The draft 2009 Budget is preliminary and does not include incremental costs associated with the 2008 Ice Storm or FEMA reimbursement. A separate analysis of the total Ice Storm expenditures and FEMA reimbursements is being developed.
Ms. Kelly reviewed the 2009 estimated expense detail and projected 2010 detail for the administrative/general and maintenance/operations budgets. Mr. Bullock distributed a detailed analysis of Account #920, Administrative Salaries. Mr. Flagg reviewed the proposed capital budget. Mr. Robinson said that there would be at least three changes to the expense side of the 2010 budget: an increase in the amount for an off-site secondary back-up for the NDS billing system, the additional expense for a new building security system, and the delay of the purchase (to next year) of a new telephone system.
Various budget items and questions were discussed. Mr. Shepherd asked about the high voltage connection to the new Public Safety Facility. Mr. Flagg responded that the labor to install the primary/overhead high voltage connection was conducted by the Light Department at no charge. The cost of the transformer was paid for by the project. Ms. Donaldson discussed the Energy Rebate Program and said that $12,650 in credits had been awarded so far in 2009. Mr. Flagg reviewed progress on the Industrial Park facilities upgrade project and said that the project would be completed in 2010. Ms. Kelly said that the solar voltaic panel project might receive grant funding through the MA Technology Collaborative. That project should be completed in 2010 as well.
Net Metering Policy
Mr. Robinson distributed the final version of the Department's Net Metering Policy. This policy had previously been reviewed by the Board and changes were made according to several suggestions. The policy includes a sample Interconnection Agreement and Application.
The Selectmen provided comments. Ms. Ferguson said that the vehicle may be an issue once the 2010 Budget is presented to the Board of Selectmen on January 4, 2010. Mr. White said that there should be a written town-wide disaster plan, including a specific plan for the Light Department. He also suggested that the Department become involved with pending High School renewable resource projects.
Chairman Liddy asked if the Advisory Board would vote on the Budget prior to the Selectman's meeting. On a motion by Mr. Harrington, seconded by Mr. Shepherd, it was unanimously agreed to accept the 2010 Operating Budget as presented including the pending addition of a new security system for the HMLD building.
There being no further business, the meeting of the Municipal Electric Power Advisory Board was adjourned by consensus at approximately 8:00 p.m.
| 
