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6 Draft September, Middleborough Gas & Electric Commission Meeting Middleborough Town Hall; Selectmen s Meeting Room Wednesday, August 17, 2016 In attendance: Chairman Dan Farley, Commissioner Tom Murphy, and Commissioner Terri Scott. Commissioners Lincoln Andrews and Jack Healey were absent. Others Present: Jackie Crowley, General Manager; Sandra Richter, Public Communications Manager; Luis Chukiu, Business Manager; and Jeannette Mello, Secretary. Chair Farley opened the meeting at 6:00 p.m. with a welcome and the Pledge of Allegiance. Chair Farley announced that the Gas & Electric Commission Meeting of August 17, 2016, is being recorded by Middleboro Community Cable Access Media (MCCAM), Verizon and Comcast. Announcements & Recognitions Comm. Murphy recognized Sandy Richter for her efforts at Krazy Days. Comm. Murphy reminded residents that the Mitchell Memorial Club hosts Friday night suppers every two weeks as a fundraiser to benefit youth sports. Unanticipated No unanticipated. Public Comment No public comment. Review and Possible Vote to Accept and Release Minutes: Open Session: July 20, 2016 July 20, 2016 Open Session Comm. Murphy made a motion to approve, accept and release open session minutes of July 20, 2016, as presented. Comm. Scott seconded the motion. The motion passed unanimously. Review and Possible Vote to Accept and Release Minutes: Executive Session: July 20, 2016 New Business: Comm. Murphy made a motion to approve, accept and release executive session minutes of July 20, Comm. Scott seconded the motion. The motion passed unanimously. A. Possible Vote to Designate Three Vehicles as Surplus Based on the vehicle assessments of Bill Taylor, Electric Division Manager and Bernie Gosson, Gas Division Manager, GM Crowley recommends designating three vehicles as surplus and offering them to Middleborough s Town Manager. The three vehicles are: a 2004 Chevy Silverado wheel drive Truck with 177,558 miles, a 2007 Chevy Colorado with 103,061 miles and a 2001 Ford F-150, 2-wheel Drive, Truck Draft 1, August 12, 2016
7 Draft September 2, 2016 with 76,000. The 2001 Ford F-150, has a duel fuel capability which includes compressed natural gas (CNG) although the CNG tank has expired. Comm. Murphy made a motion to designate the three vehicles as GM Crowley mentioned as surplus to be distributed by the Town Manager. Comm. Scott seconded the motion. The motion passed unanimously. B. S&P Global s MGED Credit Rating Evaluation Luis Chukiu, Business Manager, presented MGED s Standard and Poor s credit rating which MGED is required to maintain for purchased power agreements. After providing the requests for extensive financial reports, with the help of the accounting staff, and additional information on power contracts, MGED received an AA- credit rating. S&P assessed MGED as having a stable outlook. Old Business No Old Business. General Manager s Report A. MGED Rate Comparisons The Residential Gas Rate Comparison chart review for July s usage is based on the average usage of 14 ccfs. Based on the financial forecast, GM Crowley is planning a rate decrease for November 1st at the start of the heating season. The Residential Electric Rate Comparison chart review for July shows MGED to be the most competitive rate in the region. The combined electric and gas bill energy costs chart review shows the electric usage to be higher due to the hot weather and air conditioning. The MGED s bill shows that the customers are paying $70 less for the combined bill than Wareham and Carver, $14 less than Taunton,.85 cents more than Braintree, and $4 less than Mansfield. B. Financials The draft June financials are consistent with last month. Sales for July and August will increase due to the weather being hotter than last year. Even though gas volumes are low for the year due to the warm weather this past winter, the gas side is ahead of its forecast supporting a rate reduction for November 1st with a projected duration of 1-2 years. Current RSA balance is about 5.7 million total. C. Projects GM Crowley stated that the MGED s peak electric load for the year to date was last Thursday, August 11, 2016 recorded at hour ending 3 p.m. was MW. The following charts were displayed: 1. Daily Megawatt Demand Profile for August 11, 2016 showing Middleboro s timeframe of megawatt demand and peak demand for that day was Daily Megawatt Demand Profile - ISO-NE Regional peak August 12, 2016 hour ending 4 p.m. showing Middleboro s megawatt demand of Draft 1, September 2,
8 Draft September 2, System Load Graph ISO (Independent System Operator) forecasts requirements showing the peak for Thursday, August 11, 2016 and Friday August 12, Hourly LMP Graph ISO s Locational Marginal Price graph showing up to $1500 a MWH (megawatt hour) needed for peak demands on August 11 due in part to Milestone Nuclear in Connecticut having restrictions. 5. ISO s Morning report GM Crowley downloads this report daily showing ISO s projected peak for the next two days and the actual peak for the previous day. Correspondence There was no correspondence. Adjourn Comm. Scott made a motion to adjourn the August 17, 2016 meeting of the Middleborough Board of Gas & Electric Commissioners. Comm. Murphy seconded the motion. Motion approved unanimously. Open Session adjourned at 7:36 PM. The next scheduled meeting of the Middleborough Board of Gas & Electric Commissioners will be on Wednesday, September 21, 2016, at 6:00 PM, Selectmen s Meeting Room at the Middleborough Town Hall at 10 Nickerson Avenue in Middleborough. The Gas & Electric Commission Meeting of August 17, 2016, was videotaped and broadcast by Middleboro Community Cable Access Media (Comcast and Verizon) and audio-taped by the General Manager. Respectfully submitted, Jeannette Mello Secretary Draft 1, September 2,
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13 TO: FROM: Gas and Electric Commissioners Lincoln Andrews and Jackie Crowley, General Manager DATE: September 21, 2016 RE: Outline of General Manager Goals for For the public record, Commissioner Andrews advises his fellow Commission members that he and GM Crowley spent 3-4 hours over two dates developing the following goals. I. MGED Facilities A. Complete Electric Division garage expansion project. B. Advance plan to add a second substation: GZA, PLM, ISO-NE and Transmission Review. C. Resume plan to renovate Electric Division building: Target RFP development mid-2017; Target renovation work Spring-Summer II. Personnel and Human Resources A. Develop a job description for a professional full-time HR Manager: Target hire 3Q2017. B. Succession Planning: Manage Gas Division leadership transition; Negotiate a post-retirement consulting deal with former Gas Division Manager for training/testing. Prepare for Retirements for key skilled worker positions. C. Potential entry level management position to add coverage for essential GM/Energy Supply Tasks. D. Arrange for Anti-Bullying training with a new respectful workplace personnel policy. III. Improve Company Performance A. Restructure portfolio of natural gas assets. Current energy supply arrangements are in place for the short term (2 years) evaluate/negotiate longer term options (2 to 5 to 10+ years) to match pipeline transport capacity (deliverability). B. Revise Electric Division service pricing and construction guidelines for insurance and construction/project reimbursement; make information available via MGED website. C. Advance project to integrate GIS natural gas and electric system maps with outage management reporting, predictive analysis software to optimize infrastructure utilization, work order, labor and materials tracking, and Federal and State compliance reporting to multiple agencies (reliability, security, environmental, energy economics/statistical) for both Gas and Electric Divisions. D. Revise new customer information package and forms. Make available in print forms and for download on MGED s website.
14 MGED GM Goals for I. MGED Facilities A. Complete Electric Division garage expansion project. B. Advance plan to add a second substation: GZA, PLM, ISO-NE and Transmission Review. C. Resume plan to renovate Electric Division building: Target RFP development mid-2017; Target renovation work Spring-Summer 2018.
15 II. Personnel and Human Resources A. Develop a job description for a professional full-time HR Manager: Target hire 3Q2017. B. Succession Planning: Manage Gas Division leadership transition; Negotiate a post-retirement consulting deal with former Gas Division Manager for training/testing. Prepare for Retirements for key skilled worker positions. C. Potential entry level management position to add coverage for essential GM/Energy Supply Tasks. D. Arrange for Anti-Bullying training with a new respectful workplace personnel policy.
16 III. Improve Company Performance A. Restructure portfolio of natural gas assets. Current energy supply arrangements are in place for the short term (2 years) evaluate/negotiate longer term options (2 to 5 to 10+ years) to match pipeline transport capacity (deliverability). B. Revise Electric Division service pricing and construction guidelines for insurance And construction/project reimbursement; make information available via MGED website. C. Advance project to integrate GIS natural gas and electric system maps with outage management reporting, predictive analysis software to optimize infrastructure utilization, work order, labor and materials tracking, and Federal and State compliance reporting to multiple agencies (reliability, security, environmental, energy economics/statistical) for both Gas and Electric Divisions. D. Revise new customer information package and forms. Make available in print forms and for download on MGED s website.
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25 $2.50 Residential Gas Rate Comparison August 2016 $2.00 $1.50 $1.00 $0.50 $0.00 COST/CCF MIDDLEBORO $1.86 WESTFIELD $1.72 HOLYOKE $1.77 WAKEFIELD $2.09 BAYST TAUNTON BWATER $2.05 EVERSOURCE CARVER PLYM $1.64 NGRID/SE MASS $1.77 NGRID/BOS-BRNTREE $1.64
26 20.0 Residential Electric Rate Comparison August CENTS/KWH MIDDLEBORO 12.6 MANSFIELD 12.1 TAUNTON 14.1 BRAINTREE 13.8 NATGRID BRIDGEWATER 17.3 EVERSOURCE CARVER 20.8
27 Residential Energy Costs August 2016 $ $19.19 $19.19 $ $23.97 $ $21.70 $23.97 $19.67 $23.97 $ $ $ $ $ $ $ $ $50.00 $0.00 Electric kwh 1,053 Gas ccf 12
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