B Princeton Municipal Light Department

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BOARD OF LIGHT COMMISSIONERS

FEBRUARY 12, 2014

REGULAR MEETING MINUTES

The meeting was called to order at 6:04 PM.

Present were: Scott Bigelow – Chairman, Chris Conway – Commissioner, Jim Whitman – Commissioner and Brian Allen – General Manager. Also present was Russell Aney from Avid Solar.

Agenda: The Board voted unanimously in favor (3-0) to accept the Agenda as presented.

Meeting Minutes:  The Board voted unanimously in favor (3-0) to accept the 11/20/13 regular meeting minutes as presented.  The Board voted unanimously in favor (3-0) to accept the 12/11/13 regular meeting minutes as presented.  The Board voted unanimously in favor (3-0) to accept the 12/11/13 executive session minutes as presented, not to be released at this time.

PMLD Financial Update:

Bank Balances – reviewed the bank balances as of February 12, 2014 (a copy has been placed on file). The Board acknowledged that $29,000 not used for the purchase of the bucket truck was moved back to the depreciation and an additional $25,000 was deposited into depreciation account in 2013.

2013 Operating Budget Year-End Actuals Review – The Board received and reviewed the 2013 YTD copy of the budget (a copy has been placed on file). Commissioner Bigelow asked that document be revised to reflect the revenue for the wind energy sold to the Sterling Light Dept (SMLD) and the West Boylston Light Plant (WBLP). Mr. Allen confirmed that WBLP has been billed for October through December and payments have been received for October & November; and SMLD has been billed for November through December and payment has been received for November.

2014 Proposed Operating Budget Review – The Board received and reviewed the 2014 proposed operating budget (a copy has been placed on file). The Board compared categories and actuals from 2013 to the 2014 and Mr. Allen explained reasons for funding at different levels. The category of stock has been increased from $10K in 2013 to $33K in 2014, explained Mr. Allen to support the new stock that will be needed to complete some conversion projects in 2014. He explained that in 2013 there were minimal system upgrades performed which were covered by existing stock, and that the crew performed a lot of tree trimming in 2013 to clear the main distribution system. Commissioner Bigelow stated that the tree trimming program has benefited the town in that there have been no outages. Mr Allen acknowledged that folks in town have come to trust in the importance of the process and in the tree trimming efforts of the department. Mr. Allen confirmed that PMLD will collaborate with the Highway Department as needed. Mr. Allen acknowledged one fix to the document – the property insurance amount was added to the total formula for the column; and one addition – Webster Hydro was put back into the budget after confirming that the plant is still online. These were the only revisions to the document. Mr. Allen explained that the PMLD Hydro contract is up for renewal in March 2015. The Board acknowledged that the operating budget is balanced and that PMLD ended 2013 in the black (approximately $56K – of which $25 was put into the depreciation account). The Board approved the 2014 proposed operating budget plan dated 12/20/2013.

Mr. Allen addressed Commissioner Conway’s request for information on how the procurement process for insurances is performed for PMLD. Mr. Allen explained that John Graves Insurance is our insurance agent and Rick Wiles solicits bids from insurance companies on behalf of the Town of Princeton MA, of which PMLD is under the umbrella of. The best prices are secured each year – PMLD pays just $550 per truck per year. Mr. Allen explained that the $48,000 budgeted for property insurance is really more than property insurance. Mr. Allen agreed to provide a detailed list of those insurances. Commissioner Bigelow commented that he would like Mr. Wiles to look into Peerless as an alternative to Hartford Steam Boiler. Mr. Allen conveyed that Mr. Wiles is available to attend a future Board meeting to review the process in detail.

Commissioner Whitman asked that the 5-year budget plan be updated as needed now that the 2014 proposed budget is set.

Mr. Allen explained that the line crew is working well with just 3 linemen and with Mr. Allen’s on-call lineman support. There is no immediate need to fill the open position at this time.

Mr. Allen presented the board with a copy of the Market Outlook report from MMWEC for the last couple of weeks (a copy has been placed on file) and acknowledged that prices were very high (example $1,437 on 1/28). Mr. Allen explained that energy costs would have been approximately $300K in January for PMLD if we didn’t lock into an energy contract with NextEra. PMLD anticipates costs to be under $200K for January, a significant savings. The Board asked Mr. Allen to work on an article for the newspaper to compare PMLD electric rates and business costs against other municipals.

March 12th Caucus:

Commissioner Bigelow confirmed that he will not be running again for another 3-year term as a light commissioner, however he did extend an open door and offered his support as needed outside the Board. The Board acknowledged that their March board meeting conflicts with the March 12th caucus and a decision to reschedule the meeting will be made the first week of March. Mr. Allen did share that a few folks have expressed interest in running for the seat. Commissioner Whitman and Commissioner Conway plan to attend the caucus to nominate a candidate for Light Commissioner.

Solar Interconnect Policy Amendment Discussion:

The Board received a copy of the current solar interconnect policy and two change recommendations (#1 address the issue of a third party ownership / #2 determine an application fee amount). Russell Aney of Avid Solar was present for the discussion. Mr. Aney shared his thoughts on promoting solar programs in the town of Princeton, his ideas on rate structure and explained the state and local efforts to promote solar.

Mr. Allen shared the feedback he collected from other municipals regarding application fees and presented copies to the board for review (a copy has been placed on file). Acknowledged the Chicopee fee schedule they shared with BA. The Board discussed in detail concerns with electrical safety to personnel and to the main distribution system and protections that are mandated by the state, the electrical code and implemented during construction. Mr. Allen explained that when the grid shuts down the inverter must shut down and the four points of disconnect within the system. Mr. Aney agreed to provide Mr. Allen with some information about safety and code requirements to address some of the concerns.

Mr. Allen explained his recommendation to the Board to revise the 3rd party ownership section and prohibit 3rd party ownership. The Board discussed the fee rate to be reasonable at a rate of $55 for an application. The Board asked Mr. Allen to review Mr. Aney’s best practices information and the National Electrical & Fire Safety Code to determine what would be in the best interest of PMLD. Commissioner Whitman offered to research and learn more about a solar system and how a redundant automated safety feature could add protection.

Mr. Allen confirmed that PMLD currently has 14 active solar customers and explained that the billing system for those customers is manual because there is no software available to municipals at this time.

Other Unfinished Business:

Ecotarium – Commissioner Whitman updated the Board on his involvement with the Ecotarium in regard to their needs to improve their electric power supply source. They are currently off the grid and producing their own energy with generators that need to be replaced. Their goal is to purchase/produce green energy in the future, but first studies, decisions and design need to be addressed.

Travelers Insurance – Mr. Allen confirmed that they have paid out settlements for all three claims we filed in regard to the wind turbines. Settlement checks of $210K, $185K and $65K were received in 2013. Mr. Allen explained that the settlement money was used to pay off the outstanding invoices owed to the Attorney, MMWEC and to purchase stock for the wind turbines. A detailed breakdown of the distribution of funds is available. Mr. Allen confirmed that Travelers is still the company that holds the insurance on the turbines and that was decided after bids from six companies were reviewed. PMLD has excess liability insurance with PURMA through PUMIC and Mr. Allen has asked them to look at the contract for us to see if they can make any recommendations to improve upon the insurance coverage/rate.

At 8:00 PM the Board voted unanimously in favor by (3-0) to adjourn.

Respectfully Submitted,

Christine Trudeau

Recording Secretary