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Burlington Electric Commission

Regular Meeting

Burlington, VT · May 13, 2026

AgendaPacketMinutes

Minutes

MINUTES OF REGULAR MEETING BURLINGTON ELECTRIC COMMISSION Wednesday, May 13, 2026 The regular meeting of the Burlington Electric Commission was convened at 5:00 pm on Wednesday, May 13, 2026, at Burlington Electric Department, 585 Pine Street, Burlington, Vermont, and on Microsoft Teams. Attendance  Channel 17 was present to record this meeting.  Commissioners Lara Bonn, Ali Kenney, Scott Moody, Andy Vota, and Brian Williams were present.  Staff members Elena Alexander, Paul Alexander, Chris Burns, Mike Kanarick, Munir Kasti, Lincoln Sprague, Darren Springer, Emily Stebbins-Wheelock, and Amber Widmayer were present at 585 Pine Street.  Staff members Chris Burns and James Gibbons were present via Microsoft Teams.  Public member Pike Porter was present via Microsoft Teams.  Public members Leendert Huisman, Stuart Lindsay, Peter MacAusland and Polly Mangan were present at 585 Pine Street. 1. Agenda No changes to the agenda. 2. Meeting Minutes Commissioner Vota moved to accept April 8, 2026 minutes as presented. Commissioner Williams seconded the motion. Vote: 5 ayes 0 nays. 3. Public Forum Stuart Lindsay proposed expanding the current electric vehicle rebate program to include Level 1 (120V) charging. Mr. Lindsay stated that existing incentives focus on Level 2 systems, which are often financially or logistically inaccessible for renters, apartment dwellers, and low-income residents. Using his 2021 Toyota RAV4 Prime as an example, he noted that Level 1 charging is sufficient for many users and has reduced his annual fuel costs by $1,000. Mr. Lindsay suggested using a $59 Wi-Fi-enabled pass-through monitor to track energy consumption, allowing Level 1 users to claim the 8-cent per kilowatt-hour rebate, which could save households approximately $24 monthly. While commissioners acknowledged the importance of democratizing EV adoption, James Gibbons, Director of Policy & Planning, raised concerns regarding verification. He noted that unlike Level 2 systems, Level 1 power draws are indistinguishable from other household appliances, potentially allowing the rebate to be applied to non-EV electricity use. Mr. Lindsay suggested an 1 honor system or a variance to encourage used plug-in hybrid adoption. BED officials agreed to review the proposed hardware while considering the technical challenges of usage verification. Leendert Huisman challenged the City of Burlington’s strategy of replacing fossil fuels with wood- based renewable energy, specifically critiquing the Burlington Electric Department’s (BED) reliance on biomass. Mr. Huisman argued that "renewable" does not guarantee emission reductions, as BED’s carbon cycle model ignores the long duration carbon remains in the atmosphere before sequestration. Mr. Huisman presented data showing that while the City achieved a 9,000-ton CO2 reduction in transportation and thermal sectors over six years, the McNeil Station remains Burlington’s largest emitter, producing over 300,000 tons annually. Mr. Huisman emphasized that year-to-year fluctuations in McNeil's emissions can exceed 40,000 tons, effectively neutralizing any progress made in other sectors. After providing the board with a two-page supporting document, he asserted that rational decisions regarding the plant’s future are impossible if officials continue to ignore these figures. He concluded by urging the City and BED to integrate these facts into their energy planning rather than relying on misleading graphics that hide the true environmental cost of continuous wood-burning operations. Pike Porter acknowledged Commissioner Bonn’s recent resolution but criticized the initiative to limit public written comments. He offered several proposals to improve BED’s direction, noting that BED has not constructed new clean energy assets since 2015. Mr. Porter urged the Commission to reaffirm the 2019 Burlington City Council climate resolution targeting zero carbon electricity by 2030, matching Green Mountain Power’s current goals. Mr. Porter criticized BED’s continued funding of the 42-year-old McNeil plant without a retirement plan or an independent third-party cost-benefit analysis as fiscally irresponsible. Referring to a previous comment by General Manager Springer, Mr. Porter argued that issuing RFPs for such analyses is inexpensive and should be a prerequisite for budget approval. Mr. Porter called for the Commission to provide a clear strategic direction for BED to address these gaps, protect public interests, and meet the City’s environmental commitments by the 2030 deadline. Peter MacAusland thanked BED staff, Chris Burns for his guidance and Laurie Lemieux and Elena Alexander for their professional correspondence and Commissioners Moody and Vota for encouragement e and prompt responses, respectively. While acknowledging General Manager Springer’s assistance with questions regarding Quantified Ventures, Mr. MacAusland suggested the Commission consider appointing a dedicated spokesperson—similar to Alan Yandow’s previous role under Bob Young—rather than relying on the General Manager. Representing the advocacy group Third Act, Mr. MacAusland reaffirmed his opposition to BED’s position on the McNeil plant. 4. Monthly Impact Minute Amber Widmayer, Legislative and Regulatory Specialist gave an overview of the 2026 legislative session. Ms. Widmayer noted that Governor Phil Scott signed Bill H.940, which grants BED 2 continued flexibility to use TEPF funds for enhanced EV incentives and geothermal test wells. Ms. Widmayer explained that since Vermont has a staff-less citizen legislature, BED serves as a critical subject matter expert for committees such as House Energy and Senate Natural Resources & Energy. Key discussions included a mileage-based user fee for EV drivers, which will now be collected through annual registration rather than utility billing to ensure equity. Ms. Widmayer also highlighted S.202, an active bill regarding portable solar panels that was expanded to include appliance efficiency standards. While Ms. Widmayer monitored approximately 40 bills this session, many have stalled, including proposals for utility disconnection protections during extreme heat and the implementation of AMI opt-out fees. The session also involved tracking data privacy and data center legislation to ensure government exemptions remain. Ms. Widmayer noted that while this year was less intensive than previous Renewable Energy Standard (RES) updates, BED remains proactive in advocating for policies that maintain grid safeguards and utility interests. 5. Commissioners’ Corner No topics discussed. 6. General Manager’s Update General Manager Springer addressed Mr. Lindsay’s presentation by explaining the technical challenges in finding Level 1 chargers while mentioning the enactment of H.940, which sustains EV incentives and geothermal programs while introducing an income-qualified panel upgrade program for the 2027-2029 budget. General Manager Springer shared that BED launched "Sparky," a specialized AI chatbot, and expanded its fast-charger network to five units with two new 125kW chargers downtown. The second-annual April 13th Electrify Vermont Summit, featuring keynote speaker Jigar Shah, was a success. BED will be proposing a 2.99% rate increase for FY27, the lowest since the pandemic, despite regional FERC transmission cost pressures. Mr. Springer shared results from the 2025 Net Zero Roadmap report, highlighting a 17.8% total emissions reduction since 2018. While thermal emissions rose due to cold weather, residential and commercial emissions remained down 11.7% and 17.4%, respectively, from the baseline. Ground transportation emissions fell 24.3% since 2019, supported by a 521% increase in plug-in vehicles, which now represent over 6% of Burlington’s fleet. General Manager Springer addressed Mr. Huisman’s question regarding carbon accounting for the McNeil plant, noting BED's 50% ownership and the distinction between energy sector and land-use sector emissions. 7. March 2026 Financial Review Emily Stebbins-Wheelock, CFO and Manager of Strategy & Innovation, presented March 2026 inancial results. BED reported a monthly net loss of $790,000, which was $265,000 unfavorable to the budgeted loss of $526,000. Year-to-date net income remains strong at approximately $2.8 million, exceeding the budget by $728,000. Key variances included favorable sales of $119,000 and power supply expenses 3 of $119,000, offset by unfavorable operating & maintenance expense costs, other income, and interest expenses. Capital spending reached $6.3 million, or 42% of the annual budget. Discussion focused on the McNeil plant, where the wood chip dryer project was canceled but the NOX catalyst and heatsink replacements are being completed to restore full production capacity. Commissioner Kenney raised concerns regarding the impact of delayed capital projects on operating labor expenses; Ms. Stebbins-Wheelock clari ied that many McNeil projects utilize outside contractors, mitigating internal labor risks. As of March 31, operating cash stood at $14.5 million with 147 days of cash on hand. The debt service coverage ratio was 4.88 and the adjusted debt service coverage ratio was 1.26. Commissioner Williams requested data on remaining revenue bond funds. 8. Line of Credit Extension Ms. Stebbins-Wheelock informed the Commission that BED will be its $10 million line of credit with M&T Bank for an additional two years. The current maturity, set for June 24, 2027, will be pushed to June 24, 2028. While most terms will remain unchanged, the unused line fee will increase by 2.5 basis points, from 0.1% to 0.125%. This adjustment represents an additional annual cost of approximately $2,500. The credit line hasn't been tapped in at least six years, with its last known use dating back to the 2008-2009 inancial crisis. The line agreement utilizes an evergreen structure to ensure at least one year always remains on the term to support Moody’s credit rating guidelines for scorecard eligibility. 9. FY27 General Obligation Borrowing Ms. Stebbins-Wheelock asked the Commission to approve the City’s issuance of $3 million in annual General Obligation (GO) bonds for Fiscal Year 2027 for capital improvements to the municipal electric plant. This recurring borrowing is allowed under City charter and is traditionally integrated into the City’s larger annual GO bond issuance in the fall. This borrowing is assumed in the FY27 budget. Commissioner Williams made the motion to recommend to the Board of Finance and the City Council to authorize and direct the Chief Administrative Of icer to pledge the credit of the City by issuing general obligation bonds or a bond anticipation note in the amount of $3,000,000 for the 2027 iscal year for capital improvements, additions, and replacements for the ef icient and economical operation of the electric department. Commissioner Moody seconded the motion. Vote: 5 ayes 0 nays. 10. FY27 Rate Change Ms. Stebbins-Wheelock and General Manager Springer presented slides outlining a proposed 2.99% rate increase for FY27. BED’s cumulative rate increases over 28.7% remain signi icantly below the national average of 38.9%. Referencing a recent Rocky Mountain Institute case study, BED’s rates are relatively stable compared to those of utilities such as Eversource that rely on natural gas and are subject to its price volatility. Since 2010, BED’s rates have tracked lower than the cost of 4 housing, healthcare, and in lation. BED’s residential rates continue to be below New England and Vermont averages, with commercial rates also below the New England average and roughly on par with the rest of Vermont. The proposed rate change would increase average monthly residential bills by $2.75 and small general service bills by roughly $3.50. The Energy Assistance Program credit for the average EAP customer will rise from $12.09 to $12.45 per month. Additionally, BED is restructuring payment fees, moving from lat charges of $3.50 to a 3% variable credit card fee and a reduced $1 ACH fee. Commissioner Moody made the motion to recommend that the Board of Finance and the City Council authorize the Department to ile an across-the-board rate case with the Vermont Public Utility Commission in the amount of 2.99% on bills rendered on or after September 1, 2026. Commissioner Kenney seconded the motion. Vote: 5 ayes 0 nays. 11. FY27 Budget Ms. Stebbins-Wheelock and General Manager Springer provided the following: BED proposes a 2.99% rate increase, the lowest since the pandemic. To maintain affordability, BED cut $2.7 million in operating expenses and assumed $435,000 in vacancy savings in preparing its FY27 budget. Operating expenses are budgeted to increase 2.5% over FY26 levels. The department is budgeting for a $722,000 net income and 149 days of cash on hand. A significant discussion involved a transmission refund from VELCO to the New England region resulting from a recent FERC order. This is estimated to be a $3 million net exposure that VELCO hopes to gain FERC approval to amortize over ten years, which would in turn spread the costs to BED and other utilities over ten years. The budget also assumes expiration of the Sheffield and Hancock wind contracts, with replacement contracts modeled based on levelized current energy forwards. The $11 million capital budget, funded by revenue and general obligation bonds, prioritizes grid distribution and fleet electrification. General Manager Springer warned that stagnant kilowatt-hour sales may necessitate higher future rate increases. The budget sustains Tier 3 electrification efforts, though heat pump incentives may decline due to state policy changes. Commissioner Vota moved to approve the Department’s Fiscal Year 2027 Capital and Operating Budgets as presented. Commissioner Moody seconded the motion. Vote: 5 ayes 0 nays. 12. Release of Federal Interest for BED’s EDA Revolving Loan Fund Award #01-79-14206 Chris Burns, Manager of Energy Services, presented a proposal to request the release of federal interest for the Economic Development Administration (EDA) Revolving Loan Fund Award. This fund currently provides on-bill inancing for commercial energy ef iciency improvements. Mr. Burns explained that because the program has operated for over seven years, it is eligible for defederalization. This shift would provide signi icant bene its, including increased lexibility in the types of loans offered to support business development and job growth, the ability to set interest rates independent of the Wall Street Journal prime rate, the removal of a 50% local match 5 requirement, and the elimination of annual administrative reporting. Mr. Burns emphasized that federal partners encouraged this move and that there are no downsides, as the organization intends to maintain and improve the loan package. Commissioner Vota made a motion to authorize Commission Chair Bonn to sign the necessary letter to the EDA on behalf of Burlington Electric Commission. Commissioner Kenney seconded the motion. Vote 5 ayes 0 nays. 13. Executive Session – Power Supply Contract Commissioner Williams moved to find that premature general public knowledge of the Commission’s discussion regarding the proposed Renewable Energy Contract would clearly place the Burlington Electric Department at a substantial disadvantage per Title 1, Section 313 (a)(1) of the Vermont Statutes. Commissioner Vota seconded the motion. Vote: 5 ayes 0 nays Commissioner Moody moved that the Commission and staff members enter into executive session to discuss the proposed Renewable Energy Contract under the provisions of Title 1, Section 313(a) (1) (A) of the Vermont Statutes. Commissioner Williams seconded the motion. Vote: 5 ayes 0 nays. Executive Session start time: 6:31pm. Commissioner Vota moved to exit executive session at 7:40pm, the motion was seconded by Commissioner Williams. Vote: 5 ayes 0 nays. 14. Power Supply Contract James Gibbons, Director of Policy and Planning, provided background on an energy purchase decision following an executive session, noting that while the organization is covered for 2026, a supply gap exists for 2027 due to a contract expiring at the end of this year. Achieving 100% renewable status post-2026 is currently threatened by historic price surges; 2027 power costs have risen from $60 to the $75-$80 range following Persian Gulf disruptions. The proposed contract involves delivery of energy and RECs from a Maine hydro facility, where prices per MWh historically trend $2 to $4 lower than the Massachusetts trading hub. Mr. Gibbons explains the team is weighing the risks of delivery locations against paying premiums for Vermont-speci ic delivery. Although this con idential contract would close the immediate 2027 energy gap, it provides minimal surplus for low-production hydro or wind years. Consequently, additional contracts may be required later to establish a margin. Commissioner Williams made a motion that the Electric Commission authorizes the General Manager to enter a contract for Energy and RECs with Brook ield White Pine Hydro at a price not to exceed the price discussed in the Executive Session, or an equivalent contract with another counterparty, for a period of up to ive years beginning January 1, 2027. Commissioner Moody seconded the motion. Vote: 5 ayes 0 nays. 6 15. Community EV Charging Permanent Rate Approval James Gibbons, Director of Policy and Planning, outlined BED’s proposal to transition its Neighborhood EV charging pilot rate to a permanent structure. The pilot rate applies to ive pole- mounted chargers funded by a state grant and located in residential, income-eligible neighborhoods to assist residents without access to private, off-street parking. Usage data con irms these chargers are primarily used overnight by local residents, mirroring residential charging patterns. To align with the current home EV charging credit, BED is requesting to increase the off-peak discount from 8 cents to 9 cents per kWh, rounded for technical compatibility with charger hardware. A signi icant discussion point involved "occupancy fees"; while most public chargers incur a $1 per hour fee after a certain duration, this remains waived for the ive neighborhood chargers to ensure residents can charge overnight without lifestyle disruption. While there has been one reported 210-hour continuous occupancy incident, BED decided not to change idle fees as part of this iling to avoid complicating the 45-day Public Utility Commission notice window. Instead, BED plans a future rate iling to address occupancy and idle fees across all public charging locations simultaneously. Commissioner Vota made the motion to move to approve and recommend to the City Council for its approval the iling of necessary tariff and other documents by Burlington Electric Department at the Public Utility Commission to make the pilot Neighborhood EV Charging Rate a permanent tariff offering. Commissioner Williams seconded the motion. Vote: 5 ayes 0 nays 16. Commissioners’ Check-in Commissioner Moody re lected on his 16-year tenure, expressing regret over a 12-year period where no rate increases were implemented. While the board was proud of the freeze at the time, Commissioner Moody noted that in hindsight, it was a mistake that created a signi icant inancial gap. Commissioner Moody wondered whether if the board had simply kept up with the Cost of Living Adjustment (COLA)—estimated at roughly 2% to 2.5% annually—the current need for a major "catch-up" adjustment would have been avoided. General Manager Springer shared that unless sales growth matches rising costs, the organization must commit to moderate, incremental annual changes. This strategy ensures that adjustments compound over time, preventing the need for drastic, situational corrections. Commissioner Moody emphasized that minor annual increases are more sustainable than long-term freezes, hoping that the future commission continues this balanced approach to maintain inancial stability. Adjourn Commissioner Moody made a motion to adjourn; the motion was seconded by Commissioner Vota. Vote: 4 ayes 0 nays. The meeting of the Burlington Electric Commission adjourned at 8:01p.m. 7 Microsoft Teams transcript used to draft minutes prepared by Elena Alexander and edited by Emily Stebbins-Wheelock, CFO and Manager of Strategy & Innovation. Attest: Elena Alexander, Board Clerk (Reviewed and approved by Emily Stebbins-Wheelock) 8

Agenda

BURLINGTON BOARD OF ELECTRIC COMMISSIONERS 585 Pine Street Burlington, Vermont 05401 To be held at Burlington Electric Department (and) Via Microsoft Teams +1 802-489-6254,,636059465# LARA BONN, CHAIR ALI KENNEY SCOTT MOODY ANDY VOTA, VICE CHAIR BRIAN WILLIAMS AGENDA Regular Meeting of the Board of Electric Commissioners Wednesday, May 13, 2026 – 5:00 PM 1. Agenda (5 min.) 2. Minutes of April 8, 2026 Meeting (5 min.) 3. Public Forum (10 min.) 4. Monthly Impact Minute (discussion) (5 min.) 5. Commissioners’ Corner (discussion) (5 min.) 6. GM Update (oral update) (10 min.) 7. Financials: March FY26 (discussion): Emily Stebbins-Wheelock (10 min.) 8. Line of credit extension (discussion): Emily Stebbins-Wheelock (15 min.) 9. FY27 general obligation borrowing (discussion and vote): Emily Stebbins-Wheelock (15 min.) 10. FY27 rate change (discussion and vote): Emily Stebbins-Wheelock (15 min.) 11. FY27 budget (discussion and vote): Emily Stebbins-Wheelock (15 min.) 12. Release of federal interest for BED’s EDA Revolving Loan Fund Award #01-79-14206 (discussion and vote): Chris Burns (15 min.) 13. Executive Session - Power supply contract (discussion): James Gibbons (10 min.) 14. Power supply contract (discussion and vote): James Gibbons (10 min.) 15. Community EV Charging Permanent Rate Approval (Discussion & Vote) James Gibbons (10 min.) 16. Commissioners’ Check-In (5 min.) Attest: _________________________________________ Elena Alexander, Board Clerk If anyone from the public wishes to speak during the public forum portion of the Commission Meeting and/or wishes to be present for the Meeting of the Board of Electric Commission via Microsoft Teams, please email ealexander@burlingtonelectric.com to receive a link to the Note: Members of the public may speak during the Public Forum, or when recognized by the Chair during consideration of a specific agenda item. Meeting. Note: Members of the public may speak during the Public Forum, or when recognized by the Chair during consideration of a specific agenda item.

Packet

BURLINGTON BOARD OF ELECTRIC COMMISSIONERS 585 Pine Street Burlington, Vermont 05401 To be held at Burlington Electric Department (and) Via Microsoft Teams +1 802-489-6254,,636059465# LARA BONN, CHAIR ALI KENNEY SCOTT MOODY ANDY VOTA, VICE CHAIR BRIAN WILLIAMS AGENDA Regular Meeting of the Board of Electric Commissioners Wednesday, May 13, 2026 – 5:00 PM 1. Agenda (5 min.) 2. Minutes of April 8, 2026 Meeting (5 min.) 3. Public Forum (10 min.) 4. Monthly Impact Minute (discussion) (5 min.) 5. Commissioners’ Corner (discussion) (5 min.) 6. GM Update (oral update) (10 min.) 7. Financials: March FY26 (discussion): Emily Stebbins-Wheelock (10 min.) 8. Line of credit extension (discussion): Emily Stebbins-Wheelock (15 min.) 9. FY27 general obligation borrowing (discussion and vote): Emily Stebbins-Wheelock (15 min.) 10. FY27 rate change (discussion and vote): Emily Stebbins-Wheelock (15 min.) 11. FY27 budget (discussion and vote): Emily Stebbins-Wheelock (15 min.) 12. Release of federal interest for BED’s EDA Revolving Loan Fund Award #01-79-14206 (discussion and vote): Chris Burns (15 min.) 13. Executive Session - Power supply contract (discussion): James Gibbons (10 min.) 14. Power supply contract (discussion and vote): James Gibbons (10 min.) 15. Community EV Charging Permanent Rate Approval (Discussion & Vote) James Gibbons (10 min.) 16. Commissioners’ Check-In (5 min.) Attest: _________________________________________ Elena Alexander, Board Clerk If anyone from the public wishes to speak during the public forum portion of the Commission Meeting and/or wishes to be present for the Meeting of the Board of Electric Commission via Microsoft Teams, please email ealexander@burlingtonelectric.com to receive a link to the Note: Members of the public may speak during the Public Forum, or when recognized by the Chair during consideration of a specific agenda item. Meeting. Note: Members of the public may speak during the Public Forum, or when recognized by the Chair during consideration of a specific agenda item. DRAFT MINUTES OF REGULAR MEETING BURLINGTON ELECTRIC COMMISSION Wednesday, April 8, 2026 The regular meeting of the Burlington Electric Commission was convened at 5:00 pm on Wednesday, April 8, 2026, at Burlington Electric Department, 585 Pine Street, Burlington, Vermont, and on Microsoft Teams. Attendance  Channel 17 was present to record this meeting.  Commissioners Lara Bonn, Ali Kenney, Scott Moody, Andy Vota and Brian Williams were present.  Staff members Elena Alexander, Paul Alexander, Xander Briggs, Chris Burns, Munir Kasti, Tom Lyle, Darren Springer, and Emily Stebbins-Wheelock were present at 585 Pine Street.  Staff members Erica Ferland and James Gibbons were present via Microsoft Teams.  Public member Pike Porter was present via Microsoft Teams. 1. Agenda General Manager Springer proposed the removal of Agenda item #4 Monthly Impact Minute and #11 Proposed Renewable Wind Energy Contract. Commissioner Vota moved to accept the agenda as amended. Commissioner Moody seconded the motion. Vote: 5 ayes 0 nays. 2. Meeting Minutes Commissioner Bonn provided an updated version of the March 11, 2026 draft meeting minutes, replacing the version that was distributed in the packet. Commissioner Vota moved to accept the amended March 11, 2026 minutes as presented. Commissioner Kenney seconded the motion. Vote: 5 ayes 0 nays. 3. Public Forum No public comments were presented. 5. Commissioners’ Corner Commissioner Kenney asked for an update on the RFP for the battery storage at McNeil. General Manager Springer shared that the battery proposal is currently ranked as third priority for the power supply team, behind short-term energy needs and replacing expiring contracts. The primary 1 goal is to advance a tangible battery proposal to the Commission and City Council this year. Progression of the battery project is strictly contingent on the economic favorability of the proposals. Several solar proposals are also in the queue but will only be reviewed after the battery project has been addressed. Once a proposal is successfully advanced and approved, the project will move forward into the permitting process. 6. General Manager’s Update General Manager Springer shared the following:  BED has secured a ive-year renewal extension with Shef ield for wind energy.  Legislation H.940, which extends pilot authority for the expanded use of TEPF funds, has passed the House and is currently moving through the Senate Finance Committee.  The Principal Counsel position has been reposted with modi ied requirements, with the goal of starting interviews within the next month.  The FY26 rate case was of icially approved at a 4.33% level, and a refund plan for the previous surcharge difference has been submitted to the PUC for feedback.  The Jim Reardon Public Service Award presentation is scheduled for Wednesday, April 15th at 12:00 PM in the Spark Space.  The Electrify Vermont Summit featuring keynote speaker Jigar Shah will take place this Monday at the UVM Davis Center.  An updated Net Zero Energy roadmap including weather-normalized thermal data will be presented to the City Council later this month and to the Commission in May.  The $20 million Net Zero Energy & Grid Reliability revenue bond has been issued through the Vermont Bond Bank and will begin funding the FY26 capital budget.  A meeting is scheduled for this week with the Department of Public Service to initiate a broad review of iscal health and operational reliability. 7. February 2026 Financial Review Emily Stebbins-Wheelock, CFO and Manager of Strategy & Innovation, presented inancial results for February 2026.  The actual net income for February 2026 was $1,460,000, outperforming the budgeted target of $1.2 million.  The iscal year-to-date net income reached over $3.5 million, creating a favorable variance of $992,000 compared to the budget.  Power supply revenues were lower than budgeted by $104,000 because of lower production from renewable resources and a decrease in available renewable energy certi icates (RECs).  Operating expenses for power supply showed an unusually precise variance of only $1,000 on a $3.2 million line item.  Rising diesel prices are impacting wood chip procurement costs via a contract pricing structure that adjusts based on fuel prices.  Management warned that entering into short-term energy contracts would currently expose the company to high market volatility caused by events in the Persian Gulf. 2  Capital spending for the iscal year-to-date is $5.4 million, which is signi icantly lower than the budgeted $11.3 million for this period.  The company reported 148 days of cash on hand, a debt service coverage ratio of 4.86, and an adjusted debt service coverage ratio of 1.22. 8. FY27 Preliminary Budget Emily Stebbins-Wheelock, CFO and Manager of Strategy and Innovation presented the following:  The draft budget will be presented to the Board of Finance on April 29, followed by a inal review and separate votes on the budget and rate change during the May Commission meeting.  Management has successfully reduced an initial $5.5 million budget de icit to a current gap of approximately $2 million through ongoing adjustments.  A proposed rate increase of 3% to 4% is estimated to take effect on bills rendered starting September 1st.  The expiration of the Hancock wind contract and lower production volumes are contributing to a $750,000 shortfall in REC revenue.  Transmission costs are projected to increase by $673,000, driven by regional structural shifts and a FERC ruling that negatively impacts Vermont utilities’ transmission costs.  Major capital investments for FY27 include the relicensing of the Winooski 1 dam and the replacement of core inancial and asset management software systems.  Labor and bene it costs are budgeted to rise by $573,000, with the IBEW union contract set to expire on June 30 amid ongoing negotiations.  Total interest expenses will increase by $672,000 as the utility takes on a new revenue bond to fund its capital plan.  Despite the installation of over 3,200 heat pumps, overall kilowatt-hour sales are forecast to remain lat, making it more dif icult to absorb rising structural costs.  BED is budgeting electri ication rebates at 1.8 times the state compliance requirement to proactively support local net-zero roadmap goals. 9. Energy Efficiency Update Chris Burns, Director of Energy Services, provided the following:  The current energy ef iciency performance period runs from 2024 through 2026.  Program activity for 2024 and 2025 is currently described as sluggish, particularly within the commercial sector.  The most signi icant declines in activity are occurring in commercial existing buildings and commercial new construction.  Sluggish commercial performance is a statewide trend affecting all three Energy Ef iciency Utilities (EEUs), including partners like Ef iciency VT and VGS.  Utilities are held to speci ic minimum performance requirements and quanti iable performance indicators that are largely standardized across the state.  A potential study is currently underway to prepare for the 2027-2029 Demand Resource Plan. 3 10. Executive Session – Proposed Renewable Wind Energy Contract Terms Commissioner Vota moved to find that premature general public knowledge of the Commission’s discussion regarding the proposed Renewable Energy Wind Contract would clearly place the Burlington Electric Department at a substantial disadvantage per Title 1, Section 313 (a)(1) of the Vermont Statutes. Commissioner Kenney seconded the motion. Vote: 5 ayes 0 nays Commissioner Vota moved that the Commission and staff members enter into executive session to discuss the proposed Renewable Energy Wind Contract under the provisions of Title 1, Section 313(a) (1) (A) of the Vermont Statutes. Commissioner Moody seconded the motion. Vote: 5 ayes 0 nays. Executive Session start time: 6:31pm. Commissioner Vota moved to exit executive session at 6:56pm, the motion was seconded by Commissioner Williams. Vote: 5 ayes 0 nays. 11. Commissioners’ Check-in No topics discussed. Adjourn Commissioner Moody made a motion to adjourn; the motion was seconded by Commissioner Williams. Vote: 4 ayes 0 nays (Commissioner Kenney was not in attendance). The meeting of the Burlington Electric Commission adjourned at 6:58p.m. Microsoft Teams transcript used to draft minutes prepared by Elena Alexander then amended by Emily Stebbins-Wheelock. Attest: ______________________________________________ Elena Alexander, Board Clerk 4 To: Burlington Board of Electric Commissioners From: Darren Springer, General Manager Date: May 8, 2026 Subject: April 2026 Highlights of Department Activities General Manager – Darren Springer  Budget and Rates – BED is pleased to have finalized our FY27 rate change at 2.99%, our lowest since the pandemic and requiring significant efforts from our team on the budget and cost reductions. See Center for Innovation report for important context on transmission cost changes that are negatively impacting BED and all of Vermont, and mitigation steps.  Electrify Vermont Summit – BED, REV and UVM co-hosted a successful second Electrify Vermont Summit on April 13th. Check out the NZE Podcast from the Summit with Jen Green speaking with Jigar Shah and Navneet Trivedi, following their excellent keynote session: www.burlingtonelectric.com/pod  Net Zero Roadmap 2025 update – Check out the slides presenting the 2025 Net Zero Energy Roadmap update here: https://www.burlingtonelectric.com/wp-content/uploads/NZE-2025- Roadmap-Update-4.27.26.pdf. Highlights for 2025 include a 24.3 percent reduction in ground transportation fossil fuel use since 2019 due to more EVs/PHEVs and less gasoline vehicles registered. Colder weather in 2025 (relative to 2023 and 2024) meant a moderate rebound in thermal sector emissions. This is first year Synapse has also shared weather normalized data, included in the slides.  New Fast Chargers – BED has two new DC Fast Chargers located at St. Paul and Bank Street near the new AC Hotel. They can charge at speeds up to 125 kW, making them the fastest currently in our public charging network.  New BED AI Customer Support – BED has a new AI customer chatbot available on our website by clicking the green tab at the bottom. The chatbot can provide granular rebate information for customers. Test it out and share feedback with us!  H. 940 – Is with Governor, as of May 7th. Center for Innovation – Emily Stebbins-Wheelock  On March 19, 2026, the Federal Energy Regulatory Commission (FERC) issued an order related to the return on equity (ROE) allowed for New England Transmission Owners (NETOs). The order resolves four complaints filed beginning in 2011 arguing that transmission costs were too high due to the allowable rate of return for transmission owners on investments made to grid infrastructure. The recent order reduces the NETOs’ ROE from 10.57% to 9.57% and requires refunds be issued, with interest, to transmission customers for a portion of costs incurred since 2011.  For most of New England, this order will reduce transmission costs for utilities and their ratepayers. In Vermont, however, the state transmission operator, VELCO/Transco, is owned by the distribution utilities (DUs). Therefore, this order’s effect on DUs, including BED, will be a decrease in ISO-NE transmission costs, but an increase in VELCO transmission costs (because per the 1991 April 2026 – Department Highlights VT Transmission Agreement, VELCO is allowed to recover from the DUs whatever portion of its expenses are not covered by the region).  All of the NETOs except VELCO have filed a motion for FERC to reconsider its Order, challenging FERC’s authority to require interest during the entire refund period. It is expected that this request will be denied, but it is a required step before filing a court action.  VELCO separately filed a motion for reconsideration noting Vermont’s unique situation and that FERC’s action would increase costs for Vermont ratepayers.  On April 30, the Participating Transmission Owners Administrative Committee filed a motion with FERC to set the going-forward ROE at 11.39%. VELCO chose not to participate in the filing but to intervene.  BED staff have been participating actively in regular, continuing discussions with VELCO to evaluate and mitigate the financial impacts of this order. The order will affect BED in two ways: (1) transmission costs will increase going forward (in FY27, by an estimated $36,000) and (2) BED as a VELCO owner will need to contribute to paying the refund and interest. VELCO currently estimates that it will need to refund $121 million to ISO-NE and that 35% of this, or $40 million, will be returned to the Vermont DUs as a credit on their ISO-NE transmission bills, leaving a net cost to the DUs of over $80 million. Refunds are currently expected to be paid between September 2026 and May 2027. VELCO and the DUs are discussing possible mechanisms to spread this cost. The current thinking is for VELCO to borrow the money and seek FERC approval to create a regulatory asset to invoice DUs the $80M net cost of the refund plus loan interest over a 10-year period, smoothing the impact on VT ratepayers.  Hired Ying Liu (formerly McNeil Sr. Staff Accountant) as Operating Sr. Staff Accountant  Successfully recruited for Systems and Support Analyst (start date 6/8)  Began issuing FY25 rate case refunds to customers as bill credits on April 20  Finalizing FY27 budget  Sourcing short-term and long-term renewable energy contracts  Public Utility Commission approved BED’s request for extension for filing 2026 IRP  Due to a judicial stay, McNeil Q4 2025 RECs remain CT-1 eligible  Met with Department of Public Service re the “health assessment” DPS is conducting of all VT municipal and cooperative utilities  Toured Highgate converter as part of VELCO’s Advisory Team exploring options to refurbish, upgrade, or replace the converter  Achieved CIS implementation major milestone of data conversion 2.1  Selected FlexEnergi as distributed energy resource management system (DERMS) vendor  Podcast interview with Electrify Vermont Summit keynote speaker Jigar Shah.  Coordinating May 13 City Council presentation of Mayor’s Climate Advisors’ report  CEDO, VGS and BED re: collaborative support to small businesses.  Co-hosted Earth Day 2026 event at NNE Fletcher Free Library. Displayed F150 Lightning and a Mustang Mach-E.  In partnership with Communication and Technology Specialist, planned a more robust social media campaign to generate additional customer engagement. Page 2 April 2026 – Department Highlights Center for Safety and Risk Management – Paul Alexander Safety  The Safety Team conducted weekly Tuesday morning safety briefings with operations personnel. PreJob tailboards are covered, as well as weekly assignments for Operations with Engineering Support. System Operations gives weekly SCADA updates.  The Safety Team performed annual maintenance on all Operation fire extinguisher to include gas Turbine and all substations.  The Safety Team completed weekly OSHA 300 reporting.  The Safety Team replaced and updated all AED Pads at 585 Pine Street.  The Safety Team completed the annual mandatory OSHA 1910.179 Crane & Hoist Inspections and Preventative Maintenance (PM) on at all BED locations. The inspection encompassed operational testing of all the equipment as well as a detailed inspection per OSHA 1910.179 and ASMEB30 requirements. Environmental  The McNeil REC team completed the 1st quarter 2026 CT Class I renewable energy source compliance filing related to orders 1 and 4 of docket 08-01-03 for McNeil. Confirmation receipt was received 04/28/2026. Compliance deadline is 45 days from the end of the reporting period.  The Environmental Team conducted the bimonthly meetings with McNeil Operations. Air & Water weekly reports are covered with emphasis on water chemistry and emissions compliance.  The Environmental Team completed the Q1 2026 Air Emissions Report for the VTDEC thus meeting the compliance deadline of 30 days from the end of the reporting period.  The Environmental Team organized various Vactor truck cleaning activities for the McNeil annual outage that began in April.  The Environmental Team met with Engineering firm and Clarity Water consultants to map out an improved water chemistry program for the McNeil boiler. Risk Management  Continued extensive effort on reviewing and revising both the FY’26 and FY’27 Expense and Capital Budgets for the Center for Safety (C4S)  Received reimbursement from our Auto Insurance company (Travelers) re: stolen tools from line truck (#C-3)  Begin creation of a Request-for-Proposal (RFP) Process Policy for Purchasing area  Joined City of Burlington’s (COB’s) Inland Marine/Transit policy for shipped product  Conducted/chaired monthly BED Safety Committee (BSC)  Updated 2026 version of the “Local Emergency Management Plan” (LEMP) for the Burlington Fire Department (BFD)  Created BED’s 585 Pine Street mail run policy document for coverage issues Purchasing/General Services  Passing of Shawn Lowell FMS III  Working on RFP process, templates, LawVu,  McNeil Spring Outage started getting parts staged & forklift from Pine St to McNeil for electric motor out & load for delivery to vendor for repair & service Page 3 April 2026 – Department Highlights  McNeil RSCR Heatsink arranged delivery & trailer to hold product until installed  McNeil RSCR Catalyst & Heatsink installed by Cormetech getting crane & testing done on Heatsink to find out it is non-hazardous material  Worked on modifying FY26 & FY27 Expense & Capital Budgets Center for Operations & Reliability – Munir Kasti Engineering, Grid Services & Operations  Completed overhead rebuilds on Austin Drive, Woodlawn Road, Woodbury Road and Staniford Road.  Replaced two overloaded distribution transformers.  Replaced fifteen condemned poles.  Completed customer service upgrades on Pine Street and Mansfield Avenue.  Line crews were made aware of Osprey making a nest on two poles near the McNeil Generating Station. Crews performed a power outage to distribution circuits at McNeil to build an extension and platform for Osprey to safely re-build the nest away from power lines. Osprey successfully relocated nest to new platform. SAIFI & CAIDI Outage Metrics: BED’s distribution system experienced 18 outages in April 2026 (2 unscheduled and 16 scheduled). BED’s SAIFI for the Month of April was 0.02 interruptions per customer and CAIDI was 0.54 hours per interruption. BED's YTD SAIFI is 0.07 interruptions per customer and YTD CAIDI is 1.58 hours per interruption. The following figure shows BED’s historical YTD SAIFI and CAIDI: The following figure shows BED’s historical April SAIFI and CAIDI: Page 4 April 2026 – Department Highlights The following figure shows BED’s historical Unplanned Outages: Generation McNeil Generating Station Month Generation: 10,516 MWh YTD Generation: 84,206 MWh Month Capacity Factor: 29.2% Month Availability: 47.8 % Hours of Operation: 344 hours Winooski One Hydroelectric Station Monthly Generation: 3,768.9 MWh YTD Generation: 9,455.2 MWh Month Capacity Factor: 71% Annual Capacity Factor: 44.37% Month Availability: 100% Burlington Gas Turbine Month Generation: 0 MWh YTD Generation: 571.7 MWh Month Capacity Factor: 0% Month Availability: 100% Solar (Pine Street 107 kW) Month Generation: 11.18 MWh (-10% from previous year) YTD Generation: 20.50 MWh Month Capacity Factor: 14.5% Month Availability: 100% Solar (Airport 499 kW) Month Generation: 59.81 MWh (+41% from previous year) YTD Generation: 108.89 MWh Page 5 April 2026 – Department Highlights Month Capacity Factor: 16.6% Month Availability: 100% Center for Energy Services – Chris Burns UVM & UVMMC  UVM Medical Center – East Pavilion 3 and Old Hall Level 4 Lighting Upgrades - BED has developed savings estimates for both of these LED lighting projects.  UVM Rowell / Classroom Lighting Retrofit – UVM is gathering information on a basement nursing classroom lighting retrofit involving QTY=24 T8 fixtures to be replaced one-for-one with LED.  UVM Library Research Annex / Conversion from Steam Boilers to Hot Water – The University is planning replacing steam boilers with hot water units. The humidification system will need to be upgraded to a different technology. Included will be VFD’s added to AHU-1 and AHU-2 supply and return fans. BED is in the process of confirming expected savings and developing an incentive offer for this project. Other Services  Continued Decline in New Development and Energy Efficiency Activity  As previously reported, over the past year and a half few new construction zoning applications have been submitted to Department of Permitting and Inspections (DPI), indicating a decline in near term new development. High lending costs and construction costs continue to slow this market.  As previously reported, ES also continues to see an overall slowdown in EEU and Tier 3 activity with customers. Challenging, and uncertain, economic conditions are influencing customer decision-making. Customers continue to face economic headwinds where discretionary energy efficiency, and beneficial electrification improvements, are understandably not a priority even when utility incentives are available. VGS and EVT have reported similar market conditions. BED and VGS continue to work with the Burlington 2030 District and CEDO’s Business Support Servies team to get the word out about our services and that we are here to help. BED, VGS and CEDO will be meeting in April to brainstorm business outreach approaches.  ES continues to:  Work on several projects continues including Consolidated Communications Central Telecommunications Hub / Chiller System upgrade, Rhino Foods cooler & freezer upgrade to CO2 refrigerant, GBYMCA / HVAC Re-Commissioning, and Hill Gardens Apartments LED lighting retrofit.  Support the customer care team with a number of residential and commercial customer high bill concerns.  Partner with the VGS ES team on a number of residential weatherization and heat pump projects and commercial retrofit projects. Electric Vehicles & Charging Stations  The EVSE (ChargePoint, Flo & AmpUp) dispensed a total of 40.3 MWh and supported 2,112 sessions.  The ChargePoint EVSE served 836 unique drivers.  The top 3 sales on the ChargePoint network were 110kWh, 119kWh, and 139kWh and occurred at the Pease Lot DCFC, Pine St L2, and the Marketplace Garage. Page 6 April 2026 – Department Highlights  Approximately 50.5% (or 20.3MWh) of the energy sold from the entire network is attributed to the DCFC’s. The Pine St. DCFC dispensed the most energy.  The BE11 (Champlain College Summit St.) was removed because it was in the way of construction planned for this spring/summer.  DCFC’s BE20 and BE21 (Bank St. & St. Paul St.) were commissioned on April 8th. Stations were placed in service on April 10 and then hidden from view on the driver app on April 28. The road in front of the chargers is being paved. Paving should be completed this week.  EV and PHEV rebates to date – 1,272 (of this 275 LMI rebates to date)  Customers currently participating in the EV Charging Rate- 449  Single-family & multifamily home EV charging stations rebates to date – 445 (of this 24 LMI rebates to date). Heat Pump Installations to Date Total Heat Pump Technology Installations including Multi-Family New Construction Projects & Installations in existing buildings since the September 2019 NZEC announcement – 3,267 installations (of this 256 LMI rebates to date) Center for Customer Care & Communications – Mike Kanarick  Call Answer Time (75% in 20 seconds): April 2026 81.0%, March 81.7%, February 80.6%, January 90.4%, December 2025 91.4%, November 80.3%. April 2025 86.1%, March 90.3%, February 89.6%, January 86.4%, December 2024 83.4%, November 84%.  April 2026 Stats: please see dashboard for additional metrics categories. Page 7 April 2026 – Department Highlights Complaints to DPS about Customer Care Team 20 15 # of Complaints 14 15 9 9 10 5 5 1 0 0 0 0 0 0 0 0 0 0 0 0 Calendar Year Communications and Marketing  Earth Day: we celebrated Earth Day in fine style at the New North End Branch of the Fletcher Free Library at Ethan Allen Shopping Center on April 22. We were set up in the parking lot with BED electric fleet vehicles, including a Ford F-150 Lightning, a Mustang Mach-E, and an electric bicycle. We were proud to show community members our EVs and to have conversations about BED rebates for EVs. We thank FFL for presenting a selection of books on energy, the environment, and electrification.  Lake Monsters Customer Appreciation Nights: BED will be on the Centennial Field concourse again this season with our friends from VGS on Tuesday, June 9 to cheer on our Vermont Lake Monsters as they face the Worcester Bravehearts and again on Tuesday, July 28 as they face the Westfield Starfires (VGS will not be joining us on July 28, but will be at the July 2 game). On July 28, we plan to demonstrate a special induction cooking range, which uses a regular 120-volt plug and has battery backup power. To show appreciation for our customers, BED will give away baseball caps to the first 250 Burlingtonians each night (please show us your online or paper bill). Also, we will provide expert energy advice before and during the game.  Net Zero Energy Podcast: we invite you to listen to our latest podcast episodes, featuring Jigar Shah, co-founder of Multiplier and former Department of Energy Loan Program Office Director, and Navneet Trivedi, co-founder of Vrinda, discussing Vermont’s path to a sustainable future; and Deb Sachs, director of Net Zero Vermont and project manager of the Walk to Shop program, discussing sustainable transit. burlingtonelectric.com/podcast  Full website visits for April 2026 Page 8 April 2026 – Department Highlights Top-performing Facebook & Instagram posts  Podcast with Jigar Shah and Navneet Trivedi & with VHFA.  National Transgender Visibility Day. Page 9 BED 2025-2026 Strategic Direction Dashboard 2026 Yearly Apr 2026 Mar 2026 Feb 2026 Jan 2026 2024 Yearly 2023 Yearly 2022 Yearly 2021 Yearly 2020 Yearly 2019 Yearly Target Actuals Actuals Actuals Actuals Actuals 2025 Yearly Actuals Actual Actual Actual Actual Actual Actual Engage Customers and Community Call answer time 75% within 20 seconds 75% 83% 81% 82% 81% 90% avg 81% avg 81% avg 82% avg 82% avg 82% avg 81% Delinquent accounts >$500 0 320 320 330 333 298 avg 280 avg 223 avg 168 avg 188 avg 529 avg 201 Disconnects for non-payment 0 127 95 24 0 8 351 308 224 12 0 45 Energy Assistance Program Customers (program lifetime) NA 964 964 949 942 936 929 843 234 Energy Assistance Program Customers (currently enrolled) 300 787 787 782 777 771 772 770 219 # of residential weatherization completions 10 1 - 1 0 0 3 7 11 5 5 3 11 Weatherization completions in rental properties - - 0 0 0 0 3 8 6 0 0 TBD # or % of homes or SF weatherized TBD TBD TBD TBD TBD 0 0 TBD TBD TBD TBD 0 # of commercial building with improved thermal envelopes - - 0 0 0 1 5 6 4 5 5 0 Total annual mWh saved via the EE programs (annual goal) 4,039 1058 1058 982 952 506 1,674 1,116 2,940 4053 3057 Total residential annual mWh saved via the EE programs (cumulative for year) 702 59 59 56 37 22 233 333 494 862 917 Total commercial sector annual mWh saved via the EE programs (cumulative for year) 3,337 999 999 926 915 484 1,441 783 2,447 3191 2140 % of EEU charge from LMI customers spent on EE services for LMI customers (cumulative $ 322,387 $ 277,854 $ 297,026 $ 322,387 $ 306,434 $ 290,691 $ 282,343 $ 164,186 $ 504,942 $ 335,234 TBD TBD TBD for 2024- 2026 3-year EEU performance period) # of pageviews, overall website-wide 84,962 23,199 21,286 18,276 22,201 267,394 # of unique website homepage views 21,316 4,414 8,400 3,986 4,516 53,579 Strengthen Reliability SAIFI (AVG interruptions/customer) (annual target) < 2.1 0.02 0.02 0.05 0.00 0.00 0.35 1.63 0.56 1.05 0.17 1.48 1.01 CAIDI (AVG time in hrs to restore service) (annual target) < 1.2 1.63 0.54 1.93 2.99 1.04 1.44 0.94 0.67 1.49 0.55 0.75 Distribution System Unplanned Outages (annual target) 82 5 2 2 0 1 58 69 39 61 44 90 98 McNeil Forced Outages 0 5 1 2 1 1 11 10 5 14 5 21 TBD W1H Forced Outages 0 0 0 0 0 0 2 3 2 6 9 2 TBD GT Forced Outages 0 3 0 0 1 2 3 2 9 6 2 3 TBD Invest in Our People, Processes, and Technology Avg. # of days to fill positions under recruitment 120 163 149 147 129 228 282 253 219 100 68 179 # of budgeted positions vacant 0 10 12 11 10 7 avg 10 avg 12 avg 12 avg 9 avg 9 6 NA BED 2025-2026 Strategic Direction Dashboard 2026 Yearly Apr 2026 Mar 2026 Feb 2026 Jan 2026 2024 Yearly 2023 Yearly 2022 Yearly 2021 Yearly 2020 Yearly 2019 Yearly Target Actuals Actuals Actuals Actuals Actuals 2025 Yearly Actuals Actual Actual Actual Actual Actual Actual Innovate to Reach Net Zero Energy Tier 3 Program # of residential heat pump installs 35 2 6 13 14 217 176 186 255 315 203 10 # of commercial heat pump installs 2 - 2 0 0 1 5 8 4 4 13 0 # of residential hot water heat pump installs 1 1 0 0 0 30 28 31 26 14 6 4 # of commercial hot water heat pump installs 0 - 0 0 0 - 0 0 0 0 0 0 Heat pump rebates 37 2 8 13 14 232 185 206 271 328 212 0 Heat pump hot water heater rebates 0 - 0 0 0 30 28 47 18 15 3 0 LMI heat pump rebates 3 3 0 0 0 42 35 21 43 28 6 4 Heat pump technology installs in rental properties 0 - 0 0 0 - 3 8 10 14 9 TBD LMI heat pump hot water heater rebates 3 1 0 0 2 24 2 6 1 2 0 1 EV rebates - new 15 9 4 1 1 127 125 103 53 67 14 36 EV rebates - pre-owned 14 3 4 4 3 32 23 16 18 7 8 2 See NZE LMI EV rebates 9 3 3 3 0 26 50 26 9 11 7 7 Roadmap PHEV rebates - new 4 1 0 0 3 33 44 25 27 41 10 17 Goals below PHEV rebates - preowned 4 3 0 0 1 15 8 6 12 6 5 3 LMI PHEV rebates 0 - 0 0 0 3 11 5 15 13 6 2 Public EV chargers in BTV (total) 40 ports 40 ports 41 ports 41 ports 41 ports 41 ports 40 ports 32 ports 30 ports 27 ports 27 ports 14 Public EV charger energy dispensed (kWh) 160,600 40,200 39,600 40,800 40,000 483,500 355500 244,300 151,360 86,570 35,690 78,000 Home EV charging station rebates 16 3 4 0 9 148 82 72 70 32 20 12 EV charging rate customers (total) 1,780 449 447 443 441 425 347 246 157 40 40 28 Level 2 charger rebates - - - 0 0 86 22 10 11 10 0 1 Level 1 charger rebates - - - 0 0 1 0 0 - 0 1 0 E-bike rebates 43 30 7 6 0 263 169 147 152 88 36 65 E-mower rebates 8 6 1 0 1 88 109 135 159 154 95 142 E-forklift rebates - - - 0 0 - 0 0 1 0 0 0 MWE of Tier 3 measures installed 12,854 911 766 9,890 1,287 45,276 26,120 22,374 22,837 23,763 35,112 3,342 % Tier 3 obligation met with program measures 100% 49% 49% 45% 42% 5% 187% 122% 117% 131% 159% 283% 31% Net Zero Energy Roadmap Goals # of solar net metering projects installed 4 - 2 1 1 26 13 32 33 29 24 33 No. of homes receiving NZE Home Roadmaps - - - 0 0 - 0 - 7 10 7 Residential heat pumps for space heating (no. of homes) 2026: 15,424 NA NA NA NA NA 2,580, 18% of goal 2,320 1,952 1,749 1,448 1,112 925 Commercial heat pumps for space heating (1000 SF floor space served) 2026: 8,411 NA NA NA NA NA 602, 8% of goal 487 431 411 405 374 374 Residential heat pumps for water heating (no. of homes) 2026: 12,803 NA NA NA NA NA 416, 4% of goal 344 289 243 224 208 203 Commercial heat pumps for water heating (1000 SF floor space served) 2026: 4,287 NA NA NA NA NA 17, 1% of goal 6 0 0 0 0 - EV registrations in BTV (light-duty) 2026: 9,266 NA NA NA NA NA 1,465, 20% of goal 1,285 829 699 549 361 296 Greenhouse gas emissions (1000 metric tons CO2) 2026: 87 NA NA NA NA NA 176, 78% above target 173 179 193 188 185 214 Fossil fuel consumption (billion BTU) 2026: 1,337 NA NA NA NA NA 3,038, 97% above target 2,939 3,044 3,319 3,169 3,185 3,660 BED 2025-2026 Strategic Direction Dashboard 2026 Yearly Apr 2026 Mar 2026 Feb 2026 Jan 2026 2024 Yearly 2023 Yearly 2022 Yearly 2021 Yearly 2020 Yearly 2019 Yearly Target Actuals Actuals Actuals Actuals Actuals 2025 Yearly Actuals Actual Actual Actual Actual Actual Actual Demand Response Manage Budget and Risks Responsibly Safety & Environmental No. of workers' compensation/accidents per month 0 5 2 1 1 1 6 7 8 16 4 8 Total Paid losses for workers’ compensation accidents (for the month) annual 206,011 $ 178,933 $ 9,338 $16,758 $982 $ 186,754 $272,353 $98,393 $ 145,102 $ 93,612 $ 165,402 $38,288 Lost Time Incident Rate (days/year) (Dec numbers reflect annual results) <= 3.5 annual N/A N/A N/A N/A N/A 0.95 0.99 2.0 1.99 0.0 0.93 0.89 Lost Time Severity Rate (days/year) (Dec numbers reflect annual results) <= 71 annual N/A N/A N/A N/A N/A 25.52 9.90 107.4 112.63 0.0 41.71 78.2 Lost work days per month 0 - 0 0 0 0 27 avg 10 avg 12 avg 9 0.0 45 NOx reporting levels to EPA (Quarterly) (lbs/mmbtu) <0.075 0.065 0.062 0.066 0.066 0.065 0.071 0.06 0.06 0.06 0.07 0.07 # of reported spills, waste water incidents (monthly) 0 3 1 0 1 1 0 4 2 6 4 4 Phosphorus levels to DEC in lbs (monthly/yearly total) <0.8/37 .075/1.274 0.147/1.253 0.162/1.280 0.155/1.283 1.256 1.87 0.705 0.688 2.028 1.169 # of new power outage claims reported (monthly) 1 1 0 0 0 1 2 6 3 5 7 4 # of new auto/property/other liability claims reported (monthly) 2 11 3 2 5 1 19 24 36 27 18 27 Purchasing & Facilities # of Purchase Orders for Inventory (Target: avg for winter months) 42 67 78 68 63 58 891 738 541 636 644 593 $ value of Purchase Orders for Inv. (Target: avg dollars spent during winter) $78,000 $ 849,026 $ 2,654,966 $ 494,031 $151,176 $95,931 $ 8,244,846 $ 6,613,883 $2,481,531 $ 4,861,023 $ 3,278,620 975,531 # of stock issued for Inventory (Target: avg during winter months) 320 602 668 547 536 657 8361 7,207 6,777 6,187 4,402 4,545 $ value of stock issued for Inventory (Target: avg. during winter) $ 65,000 $ 199,308 $ 140,716 $ 125,646 $ 136,890 $ 393,980 $ 2,032,594 $ 2,352,360 $ 1,925,781 $ 2,200,233 855,456 1,086,478 # of posters pulled from poles monthly (Target: goal to remove each month) 58 0 0 0 0 0 917 351 592 900 2,728 627 # of Spark Space and Auditorium setup/breakdowns monthly (Target: Covid impact) 3 55 16 18 15 6 166 199 207 132 88 87 Finance Debt service coverage ratio (avg of previous 12-months) 1.25 4.67 4.88 4.86 4.27 50.7 FY25 4.10 FY24 3.81 FY23 4.61 FY22 4.26 FY21 3.77 FY20 3.56 FY19 Adjusted debt service coverage ratio (avg of previous 12-months) 1.5 1.17 1.26 1.22 1.04 1.29 FY25 1.25 FY24 1.29 FY23 1.22 FY22 1.08 FY21 0.93 FY20 0.90 FY19 Days unrestricted cash on hand (incl line of credit) >90 145 147 148 140 144 FY25 146 FY24 93 FY23 120 FY22 121 FY21 120 FY20 109 FY19 Arrearages >60 days $ 630,709 $ 645,560 $ 647,690 $ 619,506 $ 610,081 $ 627,497 $ 470,940 $ 392,196 $ 408,903 $ 1,087,769 $ 749,054 Regulatory Open PUC dockets 38 40 38 37 37 33 Open PUC dockets with deadlines in next 3 months 7 7 7 6 8 10 Power Supply McNeil generation (MWH) (100%) per budget 84,206 10,516 28,803 22,779 22,108 209,276 197,044 184,798 228,981 273,355 192,696 McNeil availability factor 100% 68% 48% 84% 75% 63% 60% 66% 84% 67% 80% McNeil capacity factor per budget 58% 29% 77% 68% 59% 48% 45% 42.3% 52.4% 62.4% Winooski One generation (MWH) per budget 9,456 3,769 2,756 982 1,949 17,075 29,498 36,318 25,350 24,752 21,194 Winooski One availability factor 100% 90% 100% 90% 100% 70% 53% 98% 97.2% 98.3% 97% Winooski One capacity factor per budget 40% 71% 36% 20% 35% 26% 48% 56% 41.7% 37% Gas Turbine generation (MWH) NA 566 - 13 26 527 682 484 475 356 373 441 Gas Turbine availability factor 100% 99% 100% 99% 99% 99% 96% 98% 46.7% 54.5% 96% Gas Turbine capacity factor NA 4% 0% 1% 12% 3% 1% 0.1% 0.2% 0.2% 0.21% BTV solar PV production (mWh) 1,139 472 394 135 138 4,905 5,020 4,681 5,260 5,015 5,182 Cost of power supply - gross ($000) $ 3,382 $3,570 $3,208 $3,368 $ 34,980 $34,858 $30,002 $36,755 $30,285 $31,081 Cost of power supply - net ($000) $ 2,731 $3,570 $1,256 $3,368 $ 27,131 $27,984 $22,710 $27,487 $22,134 $23,388 Average cost of power supply - gross $/KWH $0.12 $0.13 $0.12 $0.11 $ 0.12 $0.11 $0.09 $0.11 $0.09 $0.10 Average cost of power supply - net $/KWH $0.10 $0.13 $0.05 $0.11 $ 0.09 $0.08 $0.07 $0.08 $0.07 $0.08 FY 2026 Financial Review March May 6, 2026 Burlington Electric Department Financial Review FY 2026 Table of Contents: ● Financial Highlights 1-2 ● Revenues and Expenses o KWH Sales – Total 3 o Cooling/Heating Degree Days 4 o KWH Sales – Residential & Commercial 5 o Net Power Supply Costs 6-11 o Operating & Maintenance Expense 12 o Labor Overhead 13 o Net Income 14 ● Capital Spending 15 - 17 ● Cash 18 FINANCIAL HIGHLIGHTS – BUDGET VS ACTUAL as of March FY26 Full Yr CURRENT MONTH YEAR TO DATE ($000) Budget Budget Actual Variance Budget Actual Variance Sales to Customers 56,090 5,143 5,262 119 45,302 46,511 1,209 Other Revenues 3,881 341 207 (134) 3,193 2,541 (653) Power Supply Revenues 7,631 0 0 0 6,754 6,101 (652) Total Operating Revenues 67,602 5,485 5,469 (16) 55,249 55,153 (96) Power Supply Expense (Net) 35,540 3,688 3,570 119 30,442 29,663 779 Operating Expense 22,912 1,894 2,020 (126) 17,616 18,128 (512) Depreciation & Amortization 5,832 495 558 (63) 4,457 4,798 (340) Taxes 3,615 303 288 15 2,754 2,612 143 Sub-Total Expenses 67,899 6,380 6,435 (55) 55,269 55,200 69 Operating Income (298) (896) (966) (71) (20) (47) (27) Other Income & Deductions 6,855 626 509 (116) 4,365 5,160 795 Interest Expense 3,204 256 333 (77) 2,318 2,357 (39) Net Income (Loss) 3,354 (526) (790) (265) 2,028 2,755 728 Year-to-Date Results:  Sales to Customers up $1,208,800 (2.67%). Residential Sales up $514,900 and Non-Residential Sales up $693,900.  Other Revenues down $653,000 (20.4%) a. DSM billable (customer driven).  Power Supply Revenues down $652,000 (9.7%) due to lower production in CY 2025. a. McNeil REC revenue of $3,450,000 compared to a budget of $3,617,000. b. Wind REC revenue of $2,311,000 compared to a budget of $2,560,000. c. Hydro REC revenue of $340,000 compared to a budget of $576,000.  Power Supply Expenses (Net) down $778,300 (2.6%) a. Fuel down $1,511,900 (25.4%). b. Purchased Power up $792,700 (17.5%). c. Transmission down $59,100 (3.1%).  Other Operating Expenses up $512,400 (2.9%) a. Timing: various items were less than budget including outside services ($64,700), materials & supplies ($247,500), and RES Compliance ($269,000); offset by items higher than budget including labor and labor overhead, $428,600; maintenance contracts, $123,000; uncollectible accounts, $188,300; and rentals/leases, $57,800.  Taxes down $142,500 (5.2%) a. Actual Payment in Lieu of Tax (PILOT) is $162,300 lower than budget assumption for the year. b. Actual Winooski One Property Tax is $29,700 lower than budget assumption for the year.  Other Income & Deductions up $795,000 (18.6%) a. Timing; favorable gain/loss on disposition of plant, $288,100. b. Interest/investment income up $154,800. c. Timing; favorable customer contribution/grant proceeds $451,800. d. Timing; favorable miscellaneous non-operating income $79,000. e. Offset by timing of jobbing ($170,500). 1 FINANCIAL HIGHLIGHTS – BUDGET VS ACTUAL as of March FY26 Capital Spending – March YTD ($000s) Plant Type Full Yr. Budget Budget Actual % Spent Production $4,481 $3,564 $1,716 38% Other 868 634 132 15% Transmission 222 222 230 103% Distribution 6,419 5,306 3,369 52% General 3,228 2,803 877 27% Total $15,218 $12,528 $6,323 42% (1) Production – Timing; projects at McNeil and W1 are under budget including NOx system catalyst replacement ($72,000), well ($185,000), woodchip dryer ($627,000), voltage regulator ($136,000), relay engineering study ($92,500) and plate torque/embankment repair ($403,600). Also, budget assumed $50,000 for replacement rail cars in July vs $0. (2) Distribution – Transformers under budget due to availability ($723,000); timing of St. Paul Street underground ($358,000), Deforest Rd ($105,600), underground replacements ($209,400), overhead rebuilds ($135,000), GIS Pro upgrade ($189,000) and ADMS ($396,000) projects. (3) General & Other – Timing of IT Forward projects ($1,080,000), VELCO Computer Hardware ($263,000), Distributed Energy Resources Management System ($244,000), EV charger installations ($260,000), and electric forklift ($137,700). As of March 31, 2026 Operating Cash and Investments Operating Funds $10,796,531 Operating Funds – CDs $989,120 CD/Money Market - GOB $2,672,973 Total Operating Cash $14,458,625 Credit Rating Factors – March 2026 3 Year "A" "Baa" Current Average Debt Service Coverage Ratio 1.25 1.25 4.88 4.59 Adjusted Debt Service Coverage Ratio 1.50 1.10 1.26 1.31 Cash Coverage - Days Cash on Hand 90 30 - With $10M Line of Credit 147 143 - Without Line of Credit 90 2 Burlington Electric Department Fiscal Year Ending June 30, 2026 Total Sales to Customers - KWH Monthly 35,000 30,000 KWH (000) 25,000 20,000 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Budget 32,855 30,319 26,899 25,256 24,532 27,238 28,518 25,711 26,620 24,405 24,403 25,950 Actual 32,740 29,621 25,937 25,167 25,102 28,524 29,363 26,695 26,197 KWH Sales to Customers (YTD) Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Budget 32,855 63,173 90,073 115,329 139,861 167,098 195,617 221,328 247,949 272,354 296,757 322,708 Actual 32,740 62,361 88,298 113,465 138,567 167,091 196,454 223,149 249,345 3 FY 2026 Cooling Degree Days (CDD) 350 300 250 200 150 100 50 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Budget CDD 278 222 86 8 1 0 0 0 0 2 53 138 Actual CDD 306 190 39 21 0 0 0 0 0 Heating Degree Days (HDD) 1,600 1,400 1,200 1,000 800 600 400 200 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Budget HDD 2 7 96 384 769 1,066 1,307 1,152 968 571 213 44 Actual HDD 1 19 59 386 827 1,295 1,385 1,265 877 Average Monthly Temperature Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Budget 74 72 65 53 39 30 23 24 34 46 60 68 Actual 75 70 64 53 37 23 20 20 36 CDD/HDD definition per National Weather Service : Degree days are based on the assumption that when the outside temperature is 65°F, we don't need heating or cooling to be comfortable. Degree days are the difference between the daily temperature mean (high temperature plus low temperature divided by two) and 65°F. If the temperature mean is above 65°F, we subtract 65 from the mean and the result is Cooling Degree Days. If the temperature mean is below 65°F, we subtract the mean from 65 and the result is Heating Degree Days. 4 Burlington Electric Department Fiscal Year Ending June 30, 2026 KWH Sales Residential Customers 10,000 9,000 8,000 KWH (000) 7,000 6,000 5,000 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Budget 9,514 8,313 6,733 6,475 6,932 8,616 9,028 7,941 7,858 6,569 5,990 6,737 Actual 9,524 8,228 6,431 6,503 7,418 9,227 9,628 8,554 7,773 Commercial & Industrial Customers 25,000 22,500 20,000 KWH (000) 17,500 15,000 12,500 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Budget 23,340 22,006 20,166 18,780 17,601 18,622 19,490 17,770 18,762 17,837 18,413 19,213 Actual 23,216 21,392 19,506 18,664 17,684 19,297 19,735 18,140 18,424 Street Lighting is included with Commercial & Industrial Customers. 5 Net Power Supply Costs March - FY 2026 ($000) Current Month Year-to-Date Budget Actual Variance Budget Actual Variance Expenses: Fuel (p. 7) $862 $1,081 ($219) (1) $8,620 $7,108 $1,512 (1) Purchased Power (p.11) 1,682 1,379 303 (2) 12,362 13,155 (793) (2) Purchased Power Adjustment (p 11) 43 43 (0) 390 390 (0) Transmission Fees - ISO-NE 759 805 (46) (3) 6,878 7,140 (262) (3) Transmission Fees - VELCO 243 172 72 (4) 1,451 1,179 271 (4) Transmission Fees - Other 98 89 9 (5) 741 690 50 (5) Total Expenses 3,687 3,570 118 30,441 29,663 778 Revenues: Renewable Energy Certificates - McNeil 0 0 0 3,618 3,450 (167) Renewable Energy Certificates - Wind 0 0 0 2,560 2,311 (249) Renewable Energy Certificates - Hydro 0 0 0 576 340 (236) Renewable Energy Certificates - Other 0 0 0 0 0 0 Total Revenues 0 0 0 6,754 6,101 (652) (6) Net Power Supply Costs $3,687 $3,570 $118 $23,687 $23,561 $126 Load (MWh) 27,537 27,140 (397) 255,724 256,501 777 $/MWh $133.91 $131.52 ($2.38) $92.63 $91.86 ($0.77) Current Month: (1) See detail on page 7. (2) See detail on page 11. (3) ISO-NE Peak Load over Budget. (4) VELCO Common charges under Budget. (5) NYPA Transmission under Budget. YTD: (1) See detail on page 7. (2) See detail on page 11. (3) ISO-NE Peak Load over Budget. (4) VELCO Common charges under Budget. (5) NYPA Transmission under Budget. (6) REC sales under budget due to lower production in CY25. 6 Net Power Supply Costs March - FY 2026 ($000) Current Month Year-to-Date Budget Actual Variance Budget Actual Variance FUEL: McNeil 855 1,049 (194) (1) 8,444 6,613 1,831 (1) Gas Turbine 6 31 (25) (2) 175 495 (320) (2) Total Fuel 862 1,081 (219) 8,620 7,108 1,512 Current Month: (1) McNeil production 18% over Budget. Wood Price Per Ton 6% under Budget. (p. 8) (2) GT production (40 MWh) 159% over Budget. Primarily ran for reserve auditing. YTD: (1) McNeil production 21% under Budget. Wood Price Per Ton 6% under Budget. (p. 8) (2) GT production (1,048 MWh) 249% over Budget. Budget includes $50,000 in July for R99 testing. 7 Burlington Electric Department McNeil Plant - MWH Production (50%) FY 2026 25,000 20,000 15,000 10,000 5,000 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Budget 15,353 13,749 6,000 6,573 11,538 16,538 17,347 15,544 12,227 4,199 3,875 8,431 Actual 13,005 14,717 11,344 0 4,265 10,671 11,054 11,390 14,402 Maximum 18,600 18,600 18,000 18,600 18,000 18,600 18,600 16,800 18,600 18,000 18,600 18,000 8 Burlington Electric Department Winooski One - MWH Production FY 2026 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 (1,000) Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Budget 2,650 1,246 832 1,541 1,942 3,216 2,531 1,587 2,032 4,503 3,575 3,643 Actual 468 (13) 23 425 2,536 1,863 1,947 981 2,759 Maximum 5,506 5,506 5,328 5,506 5,328 5,506 5,506 4,973 5,506 5,328 5,506 5,328 9 Burlington Electric Depatment Fiscal Year 2026 Woodchips Price Per Ton Monthly Variance 30% 25% 20% 15% 10% 5% $/Ton 0% -5% -10% -15% -20% -25% -30% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Actual -5% -5% -6% -6% -4% -4% -8% -5% -6% Woodchips Price Per Ton Year-to-Date Variance 30% 25% 20% 15% 10% 5% $/Ton 0% -5% -10% -15% -20% -25% -30% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Actual -5% -5% -5% -6% -5% -5% -5% -5% -6% * Wood only. Does not include other costs. 10 Net Power Supply Costs March - FY 2026 ($000) Current Month Year-to-Date Budget Actual Variance Budget Actual Variance PURCHASED POWER: Non-Energy (capacity) 75 42 33 (1) 743 206 537 (1) Energy: Georgia Mountain Wind 284 302 (18) (2) 2,553 2,382 171 (2) Hancock Wind 354 297 56 (3) 2,325 2,089 236 (3) VT Wind 296 229 67 (4) 1,922 1,298 625 (4) Brookfield 0 0 0 0 449 (449) (5) Hydro Quebec 341 330 11 (5) 2,849 2,796 53 (6) In City Solar Generators 84 68 16 (6) 571 551 20 NYPA 7 8 (1) 56 60 (4) ISO Exchange (76) (331) 254 (7) (1,008) 2,001 (3,009) (7) ISO Exchange Adjustment 43 43 (0) (**) 390 390 (0) (**) FirstLight 0 0 0 1,015 475 539 (8) Velco Exchange 0 (1) 1 0 (8) 8 Relevate 0 162 (162) (8) 0 162 (162) (9) Total Energy 1,332 1,109 224 10,674 12,646 (1,972) Ancillary Charges (8) (76) 67 (9) (1) (667) 666 (10) VT RES Tier 1 Compliance Expense 262 286 (24) 785 752 32 Renewable Energy Credit Purchase 0 0 0 0 0 0 Miscellaneous-Other 64 62 2 553 609 (56) (11) Total Purchased Power Expense 1,726 1,423 303 12,753 13,545 (793) Special Note (**) Adjustment to reduce expense and create regulatory asset by amount of ISO Exchange excess winter energy revenue shortfall ($4,162,233) and record one-eighth ($520,279) as amortization in FY24. Current Month: (1) Capacity Obligation under Budget. (2) Production 6% over Budget. (3) Production 16% under Budget. (4) Production 23% under Budget. (5) Rate 3% under Budget. (6) Production under Budget. (7) Production (McNeil (18%) and Winooski One (36%)) over Budget. (8) New Contract not in Budget. (9) Reserve revenues over Budget. YTD: (1) Includes credit from Pay for Performance events. (2) Production 7% under Budget. (3) Production 10% under Budget. (4) Production 27% under Budget. Financial Settlements under Budget. (5) Short-Term purchase not in Budget. (6) Rate 2% under Budget. (7) Production (McNeil (21%), Winooski One (37%), FirstLight (53%), and Wind (15%)) under Budget. (8) Production 53% under Budget. (9) New Contract not in Budget. (10) Reserve revenues over Budget. (11) ISO-NE Misc. over Budget. 11 Burlington Electric Department Operating and Maintenance Expense by Spending Category FY 2026 - March YTD % Budget Actual Variance Variance * Labor-Regular 6,960,267 7,168,668 (208,401) 3% a Labor-Overtime 333,331 467,731 (134,400) 40% b Labor-Temporary 19,500 42,610 (23,110) 119% c Labor-Overhead 3,003,503 3,066,169 (62,665) 2% d Outside Services 2,338,578 2,273,882 64,696 3% DSM (rebates & outside services) 1,544,474 1,602,134 (57,660) 4% e Materials & Supplies 838,274 590,790 247,484 30% f Insurance 562,394 485,202 77,192 14% A & G Clearing (936,834) (563,828) (373,005) 40% g Other - RES Tier 3 Compliance 780,553 511,650 268,903 34% Other 2,171,657 2,483,131 (311,474) 14% h Operating & Maintenance Expense 17,615,698 18,128,139 (512,441) 3% (a) Labor is impacted by the amount of capital (vs. expense) work. (b) McNeil, $121,283, Dispatch, $14,811, and Engineering, $14,281 higher than planned. (c) Temporary help at McNeil Plant, in Customer Care and in Finance. (d) See page 13. (e) Projects are driven almost entirely by customer decisions. The budget is based on information on specific projects or seasonal variations; otherwise the amount is spread evenly across the year. (f) Timing of various projects. (g) The credit for A&G ("Admin and General Expenses") charged to Capital projects was less than planned. (h) Various areas are higher than budget including Maintenance Contracts ($123,000), Rentals and Leases ($57,800), Uncollectible Accounts ($188,300), and other miscellaneous ($160,000); offset by areas lower than budget including Education & Training ($69,400), Transportation Clearing ($160,500), and Advertising ($19,000). 12 Burlington Electric Department Budget vs Actual Spending Analysis FY 2026 - March YTD (000's) Labor - Overhead Budget Actual Variance % Pension $1,385 $1,336 $49 4% (a) Medical Insurance $1,826 $1,763 62 3% (b) Social Security Taxes $842 787 54 6% (c) Workers Compensation Ins. $331 331 0 0% (b) Dental Insurance $73 71 1 2% (b) Life Insurance $16 14 2 15% (b) Childcare Contribution Tax $48 42 7 14% (d) $4,521 $4,345 $176 4% Rates Table: Budget Pension (a) 12.58% Social Security (c) 7.65% Childcare Payroll Tax 0.44% (a) Function of labor cost. Budget includes pension per City, $1,760,100 and amortization of IBEW Pension back payment, $87,041. (b) Budget provided by the City during budget development. (c) Function of labor cost. (d) New tax as of July 1, 2024 is 0.44% of wages. 13 Net Income FY 2026 - March ($000) Current Month Year - To - Date Ref Budget Actual Variance Budget Actual Variance Operating Revenues Sales to Customers p.3 5,143 5,262 119 45,302 46,511 1,209 Other Revenues 341 207 (134) (a) 3,193 2,541 (653) (a) Power Supply Revenues p.6 0 0 0 6,754 6,101 (652) (b) Total Operating Revenues 5,485 5,469 (16) 55,249 55,153 (96) Operating Expenses Fuel p.6 862 1,081 (219) 8,620 7,108 1,512 Purchased Power p.6 1,726 1,423 303 12,753 13,545 (793) Transmission p.6 1,100 1,066 34 9,069 9,010 59 Operating and Maintenance p.12 1,894 2,020 (126) 17,616 18,128 (512) Depreciation & Amortization 495 558 (63) 4,457 4,798 (340) Revenue Taxes 55 54 1 517 522 (6) Property Taxes Winooski One 27 25 2 (b) 246 224 22 (c) Payment In Lieu of Taxes 221 209 12 (c) 1,992 1,866 126 (d) Total Operating Expenses 6,379 6,435 (56) 55,268 55,200 68 Other Income and Deductions Interest/Investment Income 36 59 23 346 501 155 Dividends 375 376 1 3,369 3,368 (1) Customer Contributions/Grant Proceeds 207 50 (157) (d) 957 1,409 452 (e) Gain/(Loss) on Disp of Plant 0 0 0 (336) (48) 288 Other 8 24 17 28 (70) (99) (f) Total Other Income & Deductions 626 509 (116) 4,365 5,160 795 Interest Expense 256 333 (77) 2,318 2,357 (39) Net Income (526) (790) (265) 2,028 2,755 728 Current Month: (a) Energy Efficiency Program cost reimbursement was lower than planned, ($150,000). Timing of $15,300 Winooski One fish billing, budgeted for $12,000 in February. (b) Actual Winooski One tax bill is lower than budget assumption by $29,700 for the year. (c) Actual Payment in Lieu of Tax (PILOT) is lower than budget assumption by $162,300 for the year. (d) Budget includes customer contributions for Great Street-Main Street ($111,300) and OH/UG billable ($31,900); grant income for Building GIANTS ($31,000) and Distributed Energy Resources Management System project ($33,000). Actual includes $0 in customer constribution and grant income for Building GIANTS ($1,400), Distributed Energy Resources Management System ($4,700), and APPA ($44,000). Year - To - Date: (a) Energy Efficiency Program cost reimbursement was lower than planned, $623,800. (b) REC sales under budget due to lower McN, wind, and hydro production in CY 2025. (c) Actual Winooski One tax bill is lower than budget assumption by $29,700 for the year. (d) Actual Payment in Lieu of Tax (PILOT) is lower than budget assumption by $162,300 for the year. (e) Budget includes customer contributions for Champlain Pkwy ($238,100), OH/UG billable ($148,900), and Great Street-Main Street ($111,300); and grant income for Building GIANTS ($255,200), and Distributed Energy Resources Management ($203,700). Actual includes customer contribution for Champlain Parkway ($186,500), and OH & UG billable ($384,000); and grant income for Building GIANTS ($22,400), Distributed Energy Resources Management, and various other grant income ($588,800). (f) Timing of jobbing unfavorable, ($170,500). Miscellaneous non-operating income favorable, $79,000. 14 March ($000) Full Yr Capital Projects - FY26 Budget Budget Actual Variance McNeil Plant (BED 50% Share) Analyzer Upgrades for Chemical Treatment 9 9 9 Appliances 1 1 1 Ash Silo Pug Mill/Auger Upgrade (312) 13 13 4 9 Augers Replaced 30 15 15 Catalyst Replacement for Nox System (312) 150 150 78 72 CEMS Server Upgrade (312) 15 0 15 -15 Cooling Tower Timber Replacement 84 84 109 -25 Demineralization Resin 20 0 0 Disk Screen 15 15 15 Energy Efficiency Improvements (311) 3 2 2 ESP Mechanical Field Rebuild 300 60 12 48 Farmhouse Improvements (311) 9 0 0 Freight Elevator Geared Equipment and Controls (311) 180 0 0 0 Furniture-Farmhouse (391) 1 1 1 Furniture-McNeil (391) 1 1 1 IT Forward - FIS Replacement (McNeil) 37 19 19 IT Forward - Work & Asset Management (McNeil) 22 11 11 Live Bottom Rebuild 139 139 177 -38 Major Turbine Overhaul 0 0 1 -1 McNeil Relay Engineering Study (315) 134 94 1 92 Network Infrastructure - McNeil Switches 7 7 2 5 Opacity Replacement (312) 20 0 13 -13 Perimeter Fence Upgrade (311) 2 1 3 -1 Portable Radio Upgrade 0 0 0 Reclaimer Rebuild (312) 0 0 12 -12 Replacement Rail Cars (312) 50 50 50 Replacement Scale PC in Swanton 2 2 2 Rigging Equipment (316) 5 4 1 3 Routine Station Improvements 1 187 112 3 109 Routine Station Improvements 2 0 0 8 -8 RSCR Heat Sink Replacement 0 0 Safety Valve Replacements (312) 25 19 19 Shredder Upgrade (312) 100 0 0 Station Tools & Tool Boxes (312) 8 6 5 1 Switchgear & Station Upgrades (315) 2 0 1 -1 Transportation Equipment 0 0 2 -2 Turbine Blade Payment 0 44 -44 Well New (311) 185 185 185 Woodchip Dryer (1 of 3) (312) 626 626 -1 627 McNeil Plant (BED 50% Share) Total 2,380 1,624 488 1,136 Hydro Production Plant 1,926 1,796 1,195 601 Gas Turbine Plant 175 144 33 110 Other 585 Fleet EV Chargers 115 115 3 112 585 Fleet EV Charging Design Study 25 25 25 Direct Current Fast Chargers (Level 3) 159 40 72 -32 Distributed Energy Resources 34 29 29 Distributed Energy Resources Management System 244 244 244 EV Charger Installations (Level 2) 264 159 11 148 EV Chargers/Staging Plan 0 0 46 -46 P&P R&D 26 23 23 Other Total 868 634 132 502 15 March ($000) Full Yr Capital Projects - FY26 Budget Budget Actual Variance Transmission Plant 222 222 230 -8 Distribution Plant - Aerial Bayview St Rcndt P896-851 0 0 0 0 Crombie St Rebuild 0 0 0 0 Curtis Ave Rebuild 0 0 1 -1 Deforest Road Rebuild 493 493 388 106 Dunder Road Rebuild 0 0 22 -22 Foster St. Secondary Replacement P133-142 0 0 1 -1 Ledge Rd Rebuild 0 0 0 0 NZE Transfer Load Between 1L1 to L14 210 105 33 73 Rebuild 1L4 from Poles P838 to P2795 173 173 38 135 Rebuild Howard Street Pole P655 to P836 41 41 1 41 Rebuild Plattsburgh Ave Poles P3762 to P3752 40 40 20 20 Rebuild St Paul Street Pole P1004 to P1011 27 27 2 25 Rebuild Wells Street Pole P191 to P183 25 25 2 23 Replace Condemned Poles 210 126 115 11 S Cove Rd East Rebuild 0 0 81 -81 South Cove Road West Rebuild 0 0 95 -95 Distribution Plant - Aerial Total 1,220 1,031 798 234 Distribution Plant - Underground 621/622CB Cap Bank Repair 0 0 30 -30 Battery Street Replacement 0 0 2 -2 Given Transfer Switch 0 0 8 -8 Rebuild UG St. Paul Street (Bank St to Cherry St) 358 358 358 Replace 2L3 from UH303 to 929S 698 698 488 209 Replace UG to UVM Aiken Center 18 18 18 St. Paul St. Rebuild (Bank to ) 0 0 1 -1 Distribution Plant - Underground Total 1,073 1,073 529 544 Distribution Plant - Customer Driven/City Projects Champlain Parkway (CAFC) -340 -238 -187 -52 Champlain Parkway-Billable 400 280 114 166 City Place Streetlighting 195 0 41 -41 City Place Streetlighting (CAFC) -104 0 0 Great Street-Main Street 621 124 491 -366 Great Street-Main Street (CAFC) -557 -111 -111 Intervale Rd Ut Relocation 0 0 3 Winooski Bridge Rebuild 34 0 7 -7 Winooski Bridge Rebuild (CAFC) -34 0 0 Distribution Plant - Customer Driven/City Projects Total 215 55 469 -411 Distribution Plant - Other 774R Transformer Recloser replace 0 0 4 -4 861S Switch Sensor Install 0 0 15 -15 Communication Equipment Emergency Repair 16 13 9 5 Distribution Transformers-Install 11 8 27 -18 Distribution Transformers-Purchase 1,445 1,445 723 723 Fiber Optical Time Domain Reflectometer Unit (OTDR) 12 12 12 Lake Street Battery Bank Replacement 41 41 24 18 Replace Failed 920S/921S/922S Switch 63 0 0 Replace Fiber Optic Cable East Ave Sub 0 0 18 -18 SCADA ADMS Upgrade (Phases 3/4) 1,204 843 447 396 SCADA Equipment 0 0 1 -1 SCADA Field Equipment Replacement 64 54 37 17 SCADA Servers, PCs and Monitors 0 0 16 -16 SCADA Video Display 0 0 0 0 Upgrade ArcFM to GIS Pro 318 191 2 189 USAmp Upgrade 7 7 6 1 Distribution Plant - Other Total 3,181 2,615 1,329 1,287 16 March ($000) Full Yr Capital Projects - FY26 Budget Budget Actual Variance Distribution Plant - Blanket - Aerial 105 82 114 -33 Distribution Plant - Blanket - Underground 189 111 -166 277 Distribution Plant - Blanket - Meters 133 109 58 51 Distribution Plant - Blanket - Lighting 217 153 203 -50 Distribution Plant - Blanket - Other SCADA Field Equipment 12 10 0 10 Substation Camera Replacement 15 15 15 Substation Maintenance 18 15 15 Tools & Equipment - Distribution/Technicians 40 36 35 1 Distribution Plant - Blanket - Other Total 85 76 35 41 General Plant - Computer Equipment/Software 2,724 2,298 702 1,596 General Plant - Vehicle Replacements 309 309 150 159 General Plant - Buildings & Grounds 179 179 23 156 General Plant - Other Office Furniture 0 0 1 -1 General Plant - Other Total 0 0 1 -1 General Plant - Other Equipment AED Purchase (5) 11 11 11 Gas Detectors (4) 6 6 6 General Plant - Other Equipment Total 16 16 16 Grand Total 15,218 12,528 6,323 6,208 17 Operating Cash - FY 2026 Monthly Ending Balance 16,000 14,000 12,000 10,000 $000 8,000 6,000 4,000 2,000 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Budget 11,796 12,786 13,998 13,397 12,763 12,585 13,665 14,922 13,431 12,560 14,123 13,221 Actual 11,713 12,126 15,199 9,842 8,335 12,649 13,189 14,993 14,459 Notes: Operating Cash = Operating + GOB Funding 18 To: Burlington Electric Commission From: Emily Stebbins-Wheelock, CFO and Manager of Strategy & Innovation Date: May 13, 2026 Re: Agenda items 8-11 8. Line of credit extension (discussion) The Department intends to extend its $10 million line of credit with M&T Bank for 2 years. This would extend the line’s maturity from June 24, 2027 to June 24, 2028. M&T Bank has offered to extend the line at the same terms and conditions, with the exception of an increase of 2.5 basis points in the unused line fee (from 0.10% to 0.125%). This would increase BED’s cost of the line by approximately $2,500 annually. Per the line of credit agreement, the Chief Administrative Officer may approve the renewal. 9. FY27 general obligation bond borrowing (discussion and vote) Per City charter, the City may issue up to $3 million in general obligation bonds annually for electric plant capital improvements, contingent on the Electric Commission approval. Once approved, the proposal goes to the City Council for inclusion in the City’s annual general obligation bond issuance, which usually occurs in the fall. The Department has assumed issuance of $3 million in general obligation bonds in the FY27 budget. Motion: To recommend to the Board of Finance and the City Council to authorize and direct the Chief Administrative Officer to pledge the credit of the City by issuing general obligation bonds or a bond anticipation note in the amount of $3,000,000 for the 2027 fiscal year for capital improvements, additions, and replacements for the efficient and economical operation of the electric department. 10. FY27 rate change (discussion and vote) The Department is proposing a 2.99% across-the-board rate increase as part of the FY27 budget. Staff will present additional information about BED’s rates relative to inflation and other utilities and the estimated impact on customer bills at the meeting. Motion: To recommend that the Board of Finance and the City Council authorize the Department to file an across-the-board rate case with the Vermont Public Utility Commission in the amount of 2.99% on bills rendered on or after September 1, 2026. Burlington Electric Department 585 Pine Street Burlington, VT 05401 burlingtonelectric.com Phone (802) 865-7300 11. FY27 budget (discussion and vote) Your packet includes a detailed FY27 budget presentation. Staff will present a high-level summary of the budget at the meeting. Motion: To approve the Department’s Fiscal Year 2027 Capital and Operating Budgets as presented. 2 of 2 Proposed Budget Fiscal Year 2027 July 1, 2026 to June 30, 2027 Burlington Electric Commission May 13, 2026 Table of Contents Section Type Document Page Key Assumptions Doc Summary 3 Income Statement Sch Income Statement 4 Sales to Customers Sch Sales to Customers 5 Sales to Customers Graph Sales Revenues & kWh 6 Sales to Customers Graph Rate Filing History 7 Sales to Customers Sch Misc. Electric Revenues 8-9 Power Supply Doc Sources of Power 10 Power Supply Doc Net Power Supply - Assumptions 11-18 Power Supply Sch Production Fuel Expense 19 Power Supply Sch Purchased Power 20 Power Supply Sch Net Power Supply Costs 21 Operating Expense graph Controllable Expenses 22 Operating Expense Sch Operational Expense 23 Operating Expense analysis Operational Expense - Notes 24 Operating Expense Sch Outside Services Detail 25 Other Revenues/Expenses Sch Depreciation & Amortization 26 Other Revenues/Expenses Sch Taxes 27 Other Revenues/Expenses Sch Dividend Income 28 Other Revenues/Expenses Sch Interest Income 29 Other Revenues/Expenses Sch Other Income, net 29 Other Revenues/Expenses Sch Interest Expense 30 Other Revenues/Expenses graph Outstanding Long Term Debt 31 LOH/Payments to the City Sch & Graph Labor Overhead 32-33 Capital Projects graph Capital Spending net of CAFC 34 Capital Projects Sch Capital Projects - Listing 35-38 Financial Indicators Sch Debt Coverage Ratios 39 Financial Indicators Sch Cash Flow 40 Financial Indicators Sch Cash Coverage 41 Burlington Electric Department Budget for the Year Ending June 30, 2027 Key Assumptions Revenues Capital  Rate increase of 2.99%, effective on bills  Total capital budget of $10.6 million rendered September 1, 2026 (net of $267,500 of anticipated  No increase in kWh sales customer contributions):  Total sales to customers up $2.9 million o Distribution, $5.7 million  Renewable Energy Credit (REC) revenues o McNeil Plant, $1.5 million $749,000 lower than FY26 primarily due to o Other generation, $1.4 million lower volumes o IT software and hardware, $1.7 million o McNeil RECs, $4.4 million o EV charging, $496,000 (FY26 - $4.9 million) o Other general plant, $224,000 o Wind RECs, $2.9 million (FY26 - $3.5 million) Cash/Financing Expenses  Beginning cash balance of $13.4 million  Wood fuel cost down $670,000 compared to  $3 million general obligation bond FY26 due to decreased production; price/ton  $9.5 million from 2026 revenue bond of $33.25 (FY26 budgeted avg. was $33.22) Construction Fund  Purchased power expenses down $531,800  $834,800 in anticipated grant income compared to FY26; assumes replacement  Projected ending cash balance of $16.1 10-year renewable energy contract starting million 7/1/26 at levelized forward energy prices with VT-1 RECs included Net Income & Credit Rating Metrics o Includes PUC-approved annual  Net operating loss of $2.3 million amortization of shortfall between the  Net income of $722,400 winter 2022-23 forward vs. actual  3.93 Revenue Debt Service Coverage Ratio energy prices of $4.16 million over Target = >1.25 eight years  1.14 Adjusted Debt Service Coverage Ratio  Transmission costs up $801,900 compared to Target = 1.5 FY26; includes impact of FERC ROE order  149 Days Cash on Hand, including $10  Labor assumes COLA, merit increases, and million Line of Credit tiering adjustments Target = 90  Year-end pension liability adjustment of $1,000,000 p. 3 Burlington Electric Department Budget for the Year Ending June 30, 2027 Income Statement (000s) Actual Actual Actual Budget Budget FY 23 FY 24 FY 25 FY 26 FY 27 OPERATING REVENUES: Sales to Customers $50,533 $54,017 $57,195 $58,940 $61,823 Misc Revenues - Power Supply 7,470 6,778 7,441 9,397 8,648 Misc Revenues - Other 4,934 3,314 3,191 4,331 3,311 Total Operating Revenues 62,937 64,108 67,827 72,668 73,783 OPERATING EXPENSES: Fuel 8,416 7,105 7,747 10,165 9,494 Purchased Power 13,585 16,818 18,661 17,432 16,900 Transmission Expense 9,336 9,653 10,458 11,993 12,794 Operation and Maintenance 22,639 23,139 22,534 24,692 26,279 Depreciation & Amortization 6,176 6,398 6,779 5,943 6,516 Gain/Loss on Disp of Plant 116 129 62 346 443 Taxes 3,207 3,396 3,437 3,660 3,643 Total Operating Expenses 63,476 66,638 69,677 74,230 76,071 NET OPERATING INCOME (538) (2,530) (1,850) (1,562) (2,288) OTHER INCOME & DEDUCTIONS: Dividends 4,400 4,533 4,505 4,494 4,695 Interest Income 502 812 664 466 920 Grants/Capital Contributions 721 1,283 2,080 1,847 1,102 Other Income, Net 6 497 153 34 52 Total Other Income/Deductions 5,628 7,125 7,402 6,841 6,769 INCOME BEFORE INTEREST EXPENSE 5,089 4,596 5,552 5,279 4,482 INTEREST EXPENSE 3,450 3,345 3,151 3,087 3,759 NET INCOME (LOSS) $1,639 $1,251 $2,401 $2,192 $722 p. 4 Burlington Electric Department Budget for the Year Ending June 30, 2027 Sales to Customers Actual Actual Actual Budget Budget (000s) FY 23 FY 24 FY 25 FY 26 FY 27 Revenue: Residential $15,215 $16,266 $17,693 $18,251 $19,033 Commercial / Industrial 34,505 36,894 38,590 39,743 41,828 Streetlights 683 724 777 805 822 Private Area Lighting 129 132 135 141 140 Total Sales to Customers $50,533 $54,017 $57,195 $58,940 $61,823 KWH: Residential 86,758 88,300 91,543 90,707 90,707 Commercial / Industrial 227,500 231,039 228,852 229,339 229,339 Streetlights 2,054 2,057 2,066 2,084 2,004 Private Area Lighting 623 592 602 577 566 Total Sales to Customers - KWH 316,935 321,988 323,062 322,708 322,616 Revenue Per KWH: Residential $0.18 $0.18 $0.19 $0.20 $0.21 Commercial / Industrial 0.15 0.16 0.17 0.17 0.18 Streetlights 0.33 0.35 0.38 0.39 0.41 Private Area Lighting 0.21 0.22 0.22 0.24 0.25 Total Sales to Customers - Revenue Per KWH 0.16 0.17 0.18 0.18 0.19 Assumptions: ● "Average" weather conditions based on last 10 years of actuals. ● Rate increase of 2.99%, effective bills rendered September 1, 2026. p. 5 Total Sales to Customers Revenues $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $- FY26 FY27 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Budget Budget Sales $ (000) $47,529 $46,702 $46,934 $44,700 $44,822 $48,494 $50,533 $54,016 $57,194 $58,940 $61,823 Total kWh Sales 350,000,000 300,000,000 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 0 FY26 FY27 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Budget Budget KWH (000) 335,473, 329,876, 330,327, 314,138, 315,844, 319,772, 316,934, 321,988, 323,061, 322,707, 322,615 p. 6 Burlington Electric Department Rate Filing History 35 30 25 P e 20 r c e 15 n 12 Years without a rate increase t 10 5 0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 Rate Change 7.19 0.00 22.8 0.00 0.00 11.3 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7.50 3.95 5.50 5.50 4.33 2.99 7.19% January 2004; 22.86% May 2006; 11.33% June 2009; 7.5% August 2021; 3.95% August 2022; 5.5% September 2023; 5.5% September 2024; 4.33% September 2025; 2.99% proposed September 2026. p. 7 Burlington Electric Department Budget for the Year Ending June 30, 2027 Actual Actual Actual Budget Budget Miscellaneous Electric Revenues FY 23 FY 24 FY 25 FY 26 FY 27 Forfeited Discounts Late Payment Fees $90,728 $54,550 $43,358 $64,300 $47,700 Miscellaneous Service Revenues Initial Service Fees 181,260 173,085 176,146 179,900 55,900 Reconnection Fees 3,595 4,475 9,735 3,000 6,600 Power Problem Investigation Fees 0 1,200 Solar/Grid Meter Fees 5,100 3,400 1,950 4,400 2,400 Disco/Reco Fees 150,000 Returned Check Fees 1,740 1,860 1,900 1,800 3,900 Temporary Service Fees 535 0 535 1,600 1,800 Meter Removal/Replacement Fees 380 670 475 900 6,600 Total Misc Service Revenues (1) 192,610 183,490 190,741 191,600 228,400 Rent from Electric Property Pole Attachments (2) 39,114 69,701 69,608 69,528 72,072 Conduit Rental (3) 26,283 26,283 78,029 78,030 80,760 Total Rent from Electric Property 65,397 95,984 147,637 147,558 152,832 * Note, a three-year average is used for most revenue projections. (1) Budget is based on 3-year historical average information as available, using updated rates effective 4/1/2026. (2) Budget is based on current billing. Rates effective as of 10/1/2020. (3) Budget based on current billing and rates effective 7/1/24 per agreements with VELCO and Burlington Telecom. p. 8 Burlington Electric Department Budget for the Year Ending June 30, 2027 Actual Actual Actual Budget Budget Miscellaneous Electric Revenues FY 23 FY 24 FY 25 FY 26 FY 27 Electric Revenues - Other Miscellaneous (1) 68,687 20,016 109,806 29,400 66,200 EEU Program Cost Reimbursement (2) 4,516,180 2,926,075 2,682,636 3,449,800 2,801,900 Winooski One Hydro - Fish Passage/Water Sales 0 32,708 16,895 12,000 14,500 Water Sales from Sugarbush 706 Total Electric Revenues - Other 4,584,867 2,979,505 2,809,337 3,491,200 2,882,600 Electric Revenues - Power Supply Renewable Energy Credits - McNeil (3) 3,570,994 3,157,978 3,756,750 4,954,277 4,450,685 Renewable Energy Credits - Wind (4) 3,017,739 2,437,682 2,724,148 3,489,594 2,921,970 Renewable Energy Credits - Hydro (5) 696,657 1,007,220 814,697 755,914 1,085,924 Renewable Energy Credits - Solar (6) 184,939 175,382 145,830 197,388 189,635 Total Electric Revenues - Power Supply 7,470,329 6,778,262 7,441,425 9,397,172 8,648,213 Total $12,403,931 $10,091,791 $10,632,498 $13,291,830 $11,959,745 (1) Includes reimbursement for scrap metal. (2) Energy Efficiency Charge funded for State energy efficiency programs effective January 2003. (3) FY27 assumes $36/MWh; FY26 assumed $39/MWh. (4) FY27 assumes $38/MWh; FY26 assumed $39/MWh. (5) FY27 assumes $29/MWh; FY26 assumed $27/MWh. (6) FY27 assumes $38/MWh; FY26 assumed $39/MWh. p. 9 BURLINGTON ELECTRIC DEPARTMENT FY 2027 BUDGET SOURCES OF POWER PURCHASED POWER Contract Nominal Market % of Type of Delivery Source Expires MW (1) MW (2) MWH Load Served Generation Point Comments Vermont Wind 2031 16.000 2.812 26,464 8.0% wind Northeast VT Began operation in October 2011 Contract extended for additional 5 years in 2026 ISO Exchange n/a n/a 27.31 (18,177) exchange VT Zone Net purchases from (sales to) ISO-NE GMC Wind 2037 10.000 1.825 26,281 7.9% wind Milton/Georgia Production began 12/31/12 NYPA - St. Law. 2032 0.059 0.054 338 0.1% lg hydro NY-NE Border Low-cost contract through the Vermont Dpt of Public Svc NYPA - Niagara 2025 2.558 2.340 14,674 4.4% lg hydro NY-NE Border Low-cost contract through the Vermont Dpt of Public Svc Relevate 2036 2.780 0.000 11,187 3.4% hydro Hub Purchase of energy & RECs & capacity from Connecticut hydro plant BED Solar (3) n/a 3.574 n/a 4,958 1.5% solar Burlington BTV parking garage began production February, 2015 BED roof production began October 2015 South 40 Solar began January 2018 Prospective Contract 2026 5.420 n/a 47,450 14.3% n/a Hub Additional Market priced renewables assumed to bein June 1, 2026 Hancock Wind 2025 13.500 0.000 11,489 3.5% wind VT Zone Partial year (Contract ends December 2026). Hydro-Québec 2038 9.000 0.000 52,560 15.8% lg hydro Highgate Deliveries commenced November 2015 Entitlement increased to 9 MW in November 2020 HQ Interconnection Credit n/a 6.346 2.919 0 0.0% n/a n/a Landfill Gas: Initial contract ends in 2005, seller has option to extend contract for 2 additional 5 year periods. Public Works saves approximately $1.25M by not disposing of the GENERATION Contract Nominal Market % of Type of Delivery Source Expires MW (1) MW (2) MWH Total MWh Generation Point Comments McNeil Generating Station N/A 25.000 26.000 125,911 37.8% wood McNeil Sub Projected to continue operation for forecast period BED Gas Turbine (4) N/A 25.000 18.183 227 0.1% oil Burlington Projected to continue operation for forecast period Winooski One Hydro N/A 7.400 2.890 29,297 8.8% small hydro Burlington Projected to continue operation for forecast period GRAND TOTAL SOURCES 84.333 350,836 BUDGET ISO-NE LOAD 327,701 BUDGET LOAD INCLUDING INTERNAL SOLAR 332,659 105.5% (1) Nominal MW represents the nameplate of or entitlement to the resource (2) Market MW represents the average monthly MW for the resource in the Forward Capacity Market (allowing for rating, reliability, partial periods and intermittent resource adjustments). (3) BED Solar does not have a market capacity rating. It reduces BED's load at peak hours. (4) GT output will be excess to BED’s own needs. p. 10 Burlington Electric Department FY27 Budget Net Power Supply – Key Assumptions OVERALL COMMENTS AND NOTES The most significant changes between the FY27 budget and the FY26 budget are: - Changes in transmission charges related to FERC Opinion 594. - Increase in net Day-Ahead Ancillary Services revenues. - Start of Relevate contract; end of FirstLight contract. - Vermont Wind contract extension. ENERGY MARKETS & RESOURCES Spot Market Energy Prices - BED has revised its wholesale energy price projection in all periods covered by the five-year budget to reflect current (higher) market expectations. - Expected baseload (around-the-clock) power price forecasts: FY26 Budget FY27 Budget FY27 $64.73 $81.23 FY28 $58.51 $69.01 FY29 $55.52 $64.32 FY30 $54.52 $58.96 FY31 $55.64 Hedge (Planned) Purchases - Potential renewable replacement contract at 10-year levelized forward energy prices with VT1 RECs was included. - There are currently no short-term hedge contracts due to planned new purchases removing the need for such transactions. - Additional hedge purchases can be made if needed. - Based on McNeil’s assumed operation, existing resources, and already executed contracts, BED expects to have contracted resources to meet the following percentages of BED’s projected loads: FY26 Budget FY27 Budget FY27 79.3% 105.5% FY28 73.4% 101.4% FY29 73.2% 100.8% FY30 72.5% 99.9% FY31 99.7% p. 11 McNeil Generating Station - 50% Ownership – 25 MW of 50 MW plant - McNeil is assumed to operate at a 57% capacity factor for FY27. - McNeil is projected to provide energy equal to approximately 38% of BED’s load in FY27. - Wood prices are assumed to average $33.25 per ton in FY27, with +3% escalation per year thereafter. - McNeil qualifies for the Vermont Tier 1 and Maine Class 1 REC markets in FY27+. - Residual RECs (RECs not already sold) are priced at $37.75 for FY27. - Average ISO-NE payments received for McNeil energy are budgeted to be 17% greater than those paid for load. - REC sales are assumed for budget period. BED Gas Turbine - Not a significant energy source. BED’s Gas Turbine is expected to provide energy equal to 0.1% of BED’s load for FY27 and this energy is expected to be excess to BED’s needs assuming expected purchases occur. - This unit provides significant value in non-energy markets (capacity and Day-Ahead Ancillary Services). - Average ISO-NE payments received for the Gas Turbine’s energy are budgeted to be 10% greater than those paid for load. - Gas Turbine currently fueled with B20; FY27 budget assumes conversion to R99 renewable fuel. Impacts of conversion to R99 (potential REC value and RGGI savings) are not assumed at this point. New York Power Authority (NYPA) - Two contracts (Niagara and St. Lawrence) continue through 2032. - Niagara is by far the larger resource. - 66% capacity factor (i.e., no non-firm deliveries) assumed. - NYPA is expected to provide energy equal to 4.5% of Burlington Electric’s load for FY27. p. 12 - This resource qualifies for VT Renewable Energy Standard Tier 1. - Average ISO-NE payments received for the NYPA energy are budgeted to be 9% less than those paid for load. - BED pays transmission fees to VELCO and NYPA to access this resource. - The RECs from this resource will be retained by Burlington Electric for renewability purposes. Vermont Wind (Sheffield, VT) - Vermont Wind became commercial on October 19, 2011. The original contract would have expired October 18, 2021. The contract now expires October 18, 2031. - BED is entitled to 16 MW (40%) of 40 MW project. - Vermont Wind is budgeted to operate at a 19% capacity factor for FY27. - Vermont Wind is expected to provide energy equal to 8.0% of Burlington Electric’s load for FY27. - Vermont Wind qualifies for VT Tier 1 and 4, and CT, MA, ME, and RI Class 1 REC markets. - Average ISO-NE payments received for Vermont Wind energy are budgeted to be 17% less than those paid for load. - REC sales assumed for budget period. Relevate - The Relevate contract is for 100% of the output of the 2.78 MW Wyre Wynd Hydro Station through February 2036. - Relevate is expected to provide energy equal to 3.4% of Burlington Electric’s load for FY27. - Relevate is budgeted to operate at a 46% capacity factor for FY27. - This resource qualifies for VT Renewable Energy Standard Tier 1 and CT Class 1 REC Markets. - Average ISO-NE payments received for the Relevate energy are budgeted to be 4% less than those paid for Load. - REC sales assumed for the Budget period. p. 13 Solar Generation - Currently, BED contracts to purchase 2,968 kW of output from nine solar generators around the city of Burlington. - The solar generation owned by BED totals 606 kW (499 kW on the airport garage roof and 107 kW at BED’s Pine Street offices). - Solar generation is projected to provide energy equal to 1.5% of Burlington Electric’s load for FY27. - The solar resources are budgeted to operate at a 16% capacity factor (average) for FY27. - Solar qualifies for all major New England REC markets. In addition, Pine Street Solar, Airport Solar, BHS F-Building, C. P. Smith, and South Forty Solar qualify as Tier 2 and Tier 4 resources in Vermont. - Average ISO-NE payments received for BED’s solar energy are budgeted to be 14% less than those paid for load. - REC sales assumed for budget period. Georgia Mountain Community Wind (GMCW) - GMCW began commercial output on December 31, 2012. - GMCW is budgeted to operate at a 30% capacity factor. - GMCW is projected to provide energy equal to 7.9% of Burlington Electric’s load for FY27. - GMCW qualifies for VT Tier 1, VT Tier 4, and CT, MA, and RI Class 1 REC markets. - Average ISO-NE payments received for GMCW energy are budgeted to be 4% less than those paid for load. - REC sales assumed for budget period. Winooski One Hydro - BED attained full ownership of the facility beginning September 1, 2014. - Winooski One is projected to provide energy equal to 8.8% of Burlington Electric’s load for FY27. - Winooski One is budgeted to operate at a 45% capacity factor for FY27. - Winooski One qualifies to sell Massachusetts Class II (non-waste) RECs and as a VT Tier 1 resource. p. 14 - Average ISO-NE payments received for Winooski One energy are budgeted to be 5% less than those paid for load. - REC sales assumed for budget period. Hydro-Québec - The 5 MW BED portion of the Hydro-Québec contract began in November 2015.A n additional 4MW has been delivered starting in November 2020. - At 9 MW, Hydro-Québec is expected to provide energy equal to 15.8% of Burlington Electric’s load for FY27. - Hydro Quebec is budgeted to operate at a 67% capacity factor for FY27. - 99%+ of this resource is expected to qualify for VT Tier 1. - Average ISO-NE payments received for the Hydro-Québec energy are budgeted to be 5% less than those paid for load. - The RECs from this resource will be retained by Burlington Electric for renewability purposes. Hancock Wind - Commercial operations began in December 2016. The contract expires on December 10, 2026. - BED is entitled to 13.5 MW of the project. - Capacity factor is budgeted to operate at a 19% FOR FY27 (partial year and lower wind production months). - Hancock Wind is expected to provide energy equal to 3.5% of Burlington Electric’s load for FY27. - Hancock qualifies for VT Tier 1, VT Tier 4, and CT, MA, ME, and RI Class 1 REC markets. - Average ISO-NE payments received for Hancock energy are budgeted to be 23% than those paid for load. - REC sales assumed for budget period. p. 15 CAPACITY MARKET Capacity Market Prices - The projected weighted average capacity rate for each kW-month for the period are: Fiscal Year $/kW-month Notes FY27 2.67 Known 11 months known FY28 3.58 & 1 month forecast FY29 3.64 FY27 forecast FY29 3.73 FY27 forecast FY31 3.82 FY27 forecast - BED is a net purchaser of capacity (i.e., total charges for load exceed resource payments) – see capacity position below. Projected Capacity Position BED expects to buy 30-40% of its capacity needs from the ISO-NE market over the next five fiscal years: FY27 FY28 FY29 FY30 FY31 McNeil 26.0 26.0 26.0 26.0 26.0 BED Gas Turbine 18.2 18.2 18.2 18.2 18.2 NYPA 2.4 2.4 2.4 2.4 2.4 Vermont Wind 2.8 2.6 2.5 2.5 2.5 GMCW 1.8 1.8 1.8 1.8 1.8 Winooski One 2.9 2.9 2.9 2.9 2.9 HQICC 2.9 3.0 3.0 3.0 3.0 Market Purchase 27.5 28.3 28.3 29.0 30.0 MW REQUIREMENT 84.3 85.2 85.1 85.9 86.5 Hedged 67.4% 66.8% 66.8% 66.2% 65.3% p. 16 RENEWABLE ENERGY CREDITS (RECs) FY27 benefits from a relatively strong REC market. REC revenues are forecasted to remain a significant offset to BED’s power costs over the forecast period. Historical and projected values are as follows: Avg. Actual FY26 FY27 Notes $/REC Revenues Budget Budget FY08 0 Partial Year - McNeil Qualified Q4-2008 FY09 23 1,648,484 FY10 23 1,624,454 ** See Note Below McNeil only - VT Wind delayed FY11 22 3,211,612 REC price falls, VT Wind partial year FY12 24 3,555,352 Recovery in REC prices - full year VT Wind FY13 42 7,123,448 FY14 51 11,237,165 Increased REC prices Winooski One partial year FY15 46 10,968,226 FY16 49 11,912,108 Winooski One full year REC Price Drop, Hancock partial year FY17 36 8,766,988 Hancock full year, No Standard Offer RECs FY18 35 7,903,446 Full year South Forty; REC price falls FY19 29 7,359,815 FY20 30 7,524,454 REC price increased 34 High REC prices FY21 8,051,813 High REC prices FY22 33 7,895,705 High REC prices FY23 32 7,470,329 FY24 32 High REC prices with some low production 6,778,263 FY25 34 High REC Prices 7,441,375 FY26 37 9,397,172 FY26 Budget FY27 37 8,367,521 8,794,735 FY27 Forecast - slightly lower average REC Price FY28 35 5,875,521 7,515,119 FY27 Forecast – No RECs from a Hancock replacement assumed and lower price FY29 30 4,353,498 6,433,271 FY27 Forecast – lower price FY30 27 4,302,080 5,766,236 FY27 Forecast – lower price FY31 27 5,760,489 FY27 Forecast ** A change from recording REC revenues from when the power is generated to when the REC is delivered caused a one-time loss of REC income (but did not change cash flow). The change is estimated to have resulted in $1,200,000 of REC revenue that would have been recorded in FY10 on a REC delivery basis being recorded in FY09. p. 17 TRANSMISSION Transmission charges, particularly ISO-NE transmission charges for use of the New England transmission system, continue to be a significant expense (though this is by no means unique to BED). Past and projected transmission charges in this forecast are: ISO-NE VELCO GMP Other Total Notes FY05 $1,354,865 $329,616 $333,696 $55,606 $2,073,783 Actual FY06 $1,317,881 $438,484 $333,696 $67,746 $2,157,806 Actual FY07 $1,492,208 $165,659 $333,696 $69,383 $2,060,946 Actual FY08 $1,727,499 $1,138,279 $259,589 $68,569 $3,193,937 Actual FY09 $2,513,582 $584,002 $329,270 $49,406 $3,476,260 Actual FY10 $3,220,858 $838,421 $277,204 $58,268 $4,394,751 Actual FY11 $3,584,512 $108,169 $1,351 $54,108 $3,748,140 Actual FY12 $3,341,192 $1,340,648 $16,630 $4,940 $3,748,140 Actual FY13 $3,990,748 $758,461 $125,710 $5,233 $4,880,153 Actual FY14 $4,621,302 $1,626,381 $316,841 $431 $6,564,955 Actual FY15 $4,810,330 $1,172,223 $291,645 $26,052 $6,300,250 Actual FY16 $5,077,900 $1,042,605 $301,783 $246,245 $6,668,533 Actual FY17 $5,328,860 $1,249,872 $321,998 $289,639 $7,190,369 Actual FY18 $5,673,053 $757,542 $335,364 $296,026 $7,061,985 Actual FY19 $5,668,802 $1,899,717 $336,125 $358,390 $8,263,034 Actual FY20 $5,339,679 $1,840,447 $338,314 $370,774 $7,889,213 Actual FY21 $6,299,655 $983,078 $361,375 $378,025 $8,022,133 Actual FY22 $7,003,913 $1,065,175 $349,732 $497,537 $8,916,356 Actual FY23 $7,010,849 $1,460,591 $336,512 $518,139 $9,326,091 Actual FY24 $7,252,076 $1,694,692 $412,169 $283,470 $9,642,406 Actual FY25 $8,075,156 $1,512,632 $464,430 $283,470 $10,499,472 Actual FY26 $8,868,723 $2,134,314 $473,240 $516,327 $11,992,604 FY26 Budget FY27 $8,600,991 $2,994,806 $508,989 $585,372 $12,701,638 FY27 Budget FY28 $8,901,809 $2,774,989 $521,713 $575,952 $12,785,945 FY27 Forecast FY29 $9,588,638 $2,703,534 $534,756 $581,404 $13,419,813 FY27 Forecast FY30 $10,238,540 $2,562,554 $548,125 $584,019 $13,944,719 FY27 Forecast FY31 $10,793,983 $2,324,676 $561,828 $574,380 $14,266,347 FY27 Forecast p. 18 Burlington Electric Department Budget for the Year Ending June 30, 2027 Budget Budget Budget Budget Budget Production Fuel Expense FY 23 FY 24 FY 25 FY 26 FY 27 COST OF FUEL (McNeil @ 50%) McNeil - Fuel Purchases Wood (1) $6,658,440 $6,303,012 $5,923,702 $7,049,573 $6,384,474 Gas for Start-up (2) 81,846 57,756 59,352 59,352 59,352 Gas for NOx Reduction (2) 9,450 2,190 2,250 2,250 0 Oil for Loaders, other (3) 86,544 148,633 92,269 92,269 91,323 Sub-Total 6,836,280 6,511,591 6,077,573 7,203,444 6,535,149 McNeil - Other Costs Labor - Yardworkers 290,133 279,758 327,057 354,117 386,933 Labor - Foresters 285,389 313,395 326,217 348,959 305,464 Swanton Yard/NECRR (train deliveries) 1,686,786 1,806,541 1,664,916 1,628,812 1,578,445 Wood Ash Removal 32,250 65,165 66,603 66,603 66,603 Other (4) 375,235 407,120 359,615 368,353 420,973 Total Other Costs 2,669,794 2,871,979 2,744,407 2,766,843 2,758,419 Total McNeil Fuel 9,506,074 9,383,569 8,821,980 9,970,287 9,293,568 Gas Turbine (Oil) (3) 153,748 162,247 146,946 194,276 200,862 Total Production Fuel Expense $9,659,822 $9,545,816 $8,968,926 $10,164,563 $9,494,430 (1) Wood # Tons: 198,846 198,847 177,527 200,345 192,014 Average Price/Ton $: $33.49 $31.70 $33.37 $34.69/$35.76 $33.25 MWh Production: 106,955 113,254 116,411 131,374 125,911 (2) Gas # MCF: 7,501 5,000 5,000 5,000 5,000 Price $: $9.00 $8.75 $8.75 $9.00 $9.00 (3) Oil (per gallon) $3.50 $3.17 $3.17 $3.75 $3.75 GT MWh Production: 70 284 284 346 227 (4) Includes fuel assessment, oil tank integrity testing, aerial survey, general maintenance, unloading trestle lease, railcar storage, RR switching/repair, and emission fees. p. 19 Burlington Electric Department Budget for the Year Ending June 30, 2027 Actual Actual Actual Budget Budget Purchased Power FY 23 FY 24 FY 25 FY 26 FY 27 Energy Charges Hancock Wind (1) $2,939,428 $2,664,134 $2,871,919 $3,037,145 $1,042,734 Georgia Mountain Wind 3,106,777 3,183,389 3,701,178 3,414,456 3,405,556 Hydro Quebec 3,294,744 3,592,721 3,577,552 3,849,320 4,099,383 VT Wind 1,981,978 2,115,377 2,665,537 2,517,365 2,275,030 Great River Hydro 2,162,389 2,164,831 1,158,900 0 0 In City Solar Generators 875,802 779,347 836,211 839,048 839,048 NYPA 83,627 87,962 86,409 73,916 73,860 First Light Hydro 1,872,352 1,014,656 0 Relevate Hydro 950,771 Prospective renewable energy contract (2) 0 2,964,676 VELCO Exchange (3,360) (3,294) (5,068) 0 0 ISO Exchange (5,211,966) (184,198) (1,528,205) (542,618) (1,977,886) ISO Exchange - Accounting Order (3) 520,279 520,279 520,284 520,279 520,279 Subtotal Energy Charges 9,749,698 14,920,548 15,757,068 14,723,567 14,193,452 Capacity Charges ISO Settlement 2,411,945 988,497 342,857 852,407 887,477 NYPA 127,795 127,795 124,781 127,788 127,788 VT Wind (119,357) (76,214) (93,256) 0 0 Hancock Wind (1) (1,212) (5,153) 0 0 DERMS 18,412 Subtotal Capacity Charges 2,420,383 1,038,866 369,229 980,195 1,033,676 Net Ancillary Services 188,163 (81,984) (96,131) (42,539) (393,331) Miscellaneous VT RES Tier 1/5 Compliance Expense 629,597 333,178 1,899,519 1,046,147 1,190,797 Miscellaneous-Other (4) 596,859 607,655 730,975 724,658 875,617 Miscellaneous 1,226,456 940,833 2,630,494 1,770,805 2,066,414 $13,584,700 $16,818,263 $18,660,660 $17,432,028 $16,900,211 (1) Contract expires 12/10/26. (2) Assumed 10-year renewable energy contract including VT-1 RECs beginning 7/1/26. (3) PUC-approved regulatory accounting treatment to amortize over 8 years the shortfall between the winter 2022- 23 forward energy prices and the actual winter 2022-23 energy prices. (4) Includes day-ahead ancillary services market, ISO-NE dispatch, administration, and misc/other charges. p. 20 Burlington Electric Department Budget for the Year Ending June 30, 2027 Actual Actual Actual Budget Budget Net Power Supply Costs (000s) FY 23 FY 24 FY 25 FY 26 FY 27 Expenses: Fuel (p. 19) $8,416 $7,105 $7,747 $10,165 $9,494 Purchased Power (p. 20) 13,585 16,818 18,661 17,432 16,900 Transmission Fees 9,336 9,653 10,458 11,993 12,794 Total Power Supply - Expenses 31,337 33,577 36,865 39,589 39,189 Revenues: Renewable Energy Credits - McNeil (1) 3,571 3,158 3,757 4,954 4,451 Renewable Energy Credits - Wind (2) 3,018 2,438 2,724 3,490 2,922 Renewable Energy Credits - Hydro (3) 697 1,007 815 756 1,086 Renewable Energy Credits - Standard Offer/Solar (4) 185 175 146 197 190 Total Power Supply - Revenues 7,470 6,778 7,441 9,397 8,648 Net Power Supply Costs $23,866 $26,798 $29,424 $30,192 $30,541 (1) FY27 assumes $36/MWh; FY26 assumed $39/MWh. (2) FY27 assumes $38/MWh; FY26 assumed $39/MWh. (3) FY27 assumes $29/MWh; FY26 assumed $27/MWh. (4) FY27 assumes $38/MWh; FY26 assumed $39/MWh. p. 21 Controllable Expenses, FY16-FY27 $35,000 $30,000 $25,000 $20,000 $000s $15,000 $10,000 $5,000 $0 Actual (A) or Budget (B) Projection Based on 10-Year Growth Rate Prior to FY16 Controllable Expenses = Total O&M expense (-)EEC Expense (-) Transmission Exp (-) Tier 3/5 RES Compliance (-)A&G Capitalized. Continued fiscal discipline since FY16 has moderated annual increases in controllable expenses to 5.22% on average, compared to 5.84% between FY07-FY16. p. 22 Burlington Electric Department Budget for the Year Ending June 30, 2027 Operational Expense Actual Actual Actual Budget Budget FY 23 FY 24 FY 25 FY 26 FY 27 Labor Expense Labor-Regular $8,074,308 $8,809,252 $9,040,472 $9,317,664 $10,046,189 (1) Labor-Overtime 486,218 486,928 501,760 437,874 485,499 Labor-Temporary 77,778 27,624 22,611 19,500 25,600 (2) Sub-Total Labor 8,638,304 9,323,804 9,564,843 9,775,039 10,557,288 Labor-Overhead 4,463,776 5,620,423 5,296,521 5,001,980 5,605,507 (3) Total Labor w/ Overhead 13,102,080 14,944,227 14,861,364 14,777,019 16,162,795 Non-Labor Expense Office Supplies 7,158 5,758 4,343 8,370 12,220 Materials & Supplies 852,461 724,373 712,814 1,099,073 1,279,159 Publications 1,552 858 1,709 3,570 3,470 Training 59,842 47,209 54,673 115,856 110,150 (4) Education 40,167 28,582 28,514 45,056 19,520 (5) Business Meetings 6,602 3,746 5,747 9,711 7,023 Phones 35,650 30,807 29,629 31,578 42,825 Maintenance Contracts 750,362 682,006 980,152 1,206,637 1,445,001 (6) Dues and Fees 125,002 104,590 117,726 147,643 147,967 Advertising 33,270 31,873 33,590 42,820 33,810 Building Clearing 296,827 259,571 299,842 309,958 328,384 Transportation Clearing 258,900 257,679 145,202 329,479 314,404 (7) Admin & General Capitalized (697,581) (683,757) (883,644) (1,224,640) (896,580) (8) Allocations to McNeil (20,358) (19,542) (16,404) (19,180) (22,888) (9) Outside Services (p. 24) 4,159,795 2,977,874 2,597,244 3,429,286 3,308,342 Transmission 9,335,775 9,652,699 10,458,202 11,992,604 12,794,462 Rentals & Leases 62,475 135,078 105,716 95,596 119,729 Group Insurance 747,287 807,413 761,988 748,243 769,789 Printing and Forms 9,298 10,952 11,200 17,353 17,785 Computer Supplies 21,383 21,102 16,398 23,044 32,614 Computer Software 1,418 2,333 4,509 4,320 4,128 Postage 66,223 86,652 91,421 94,336 101,410 Utilities 182,078 201,699 223,456 240,869 238,775 DSM Rebates 1,767,430 1,407,170 1,198,106 1,728,627 1,422,483 (10) Uncollectible Accounts 120,427 325,302 141,818 108,000 300,000 (11) Claims Settlements 118,982 119,025 120,264 119,261 119,689 OPEB (9,021) (57,542) (95,826) 0 0 CO2 Credit GT 13,450 0 0 0 0 Other - RES Tier 3 & 5 Compliance 554,725 624,423 792,181 1,148,527 826,810 (12) Other (28,915) 60,588 190,330 54,797 30,304 (13) Total Non-Labor Expense 18,872,664 17,848,521 18,130,900 21,910,793 22,910,787 Total Operational Expense $31,974,744 $32,792,748 $32,992,264 $36,687,812 $39,073,582 Less EEC Expenses (reimbursed) (4,516,180) (2,926,075) (2,682,636) (3,456,446) (2,801,900) Less Power Supply - Transmission (9,335,775) (9,652,699) (10,458,202) (11,992,604) (12,794,462) Less RES Tier 3/5 Compliance (554,725) (624,423) (792,181) (1,148,527) (826,810) Less Admin & General Capitalized 697,581 683,757 883,644 1,224,640 896,580 Controllable Cost $18,265,645 $20,273,308 $19,942,889 $21,314,876 $23,546,990 See notes on page 24 p. 23 Budget for the Year Ending June 30, 2027 Operational Expense Notes (1) Labor–Regular – FY27 includes 3.5% cost-of-living adjustment and merit pay assumptions. Also, labor impacted by the amount of capital (vs. expense) work. FY26 assumed 14% of labor allocated to capital projects and FY27 assumes 10%. (2) Labor–Temporary – FY27 includes temporary Customer Care position. FY26 included temporary McNeil position. FY23 and FY24 included temporary position for System Operations. (3) Labor-Overhead – Pension and benefits expenses per City of Burlington. FY27 assumes year-end adjustment for pension liability of $1,000,000. (4) Training - includes personnel development for all areas of the Department as well as specific safety and skills training. (5) Education – The Department’s Qualified Degree Program and Apprentice Lineworker Program costs. (6) Maintenance Contracts – Hardware and software support and maintenance. (7) Transportation Clearing – Vehicle maintenance and gasoline provided by the Department of Public Works. Impacted by the amount of capital (vs. expense) work and by the amount of work we use contractors for. (8) Admin & General Capitalized – Contingent on capital projects. (9) Allocations to McNeil – Certain incidental BED administrative costs are allocated to McNeil joint owners. (Most costs directly charged.) (10) DSM Rebates – FY27 includes $2,801,900 in “Other Revenues” to cover these and other costs. (11) Uncollectible Accounts – Customer accounts written-off for non-collection. (12) Other – RES Tier 3 & Tier 5 Compliance – Based on annual compliance obligation under VT Renewable Energy Standard and unit cost of inventoried Tier 3 & Tier 5 credits. (13) Other – FY23 included adjustment for obsolete equipment ($32,200). FY25 included expenses for Energy Services subgrant activities with Efficiency Vermont through Vermont Department of Public Service. p. 24 Burlington Electric Department Budget for the Year Ending June 30, 2027 Operational Expense Actual Actual Actual Budget Budget Outside Services FY 23 FY 24 FY 25 FY 26 FY 27 Equipment Maintenance $426,210 $343,034 $300,779 $613,773 $796,688 Legal Services 55,497 67,576 86,338 45,500 25,000 Temporary Help 6,898 14,704 11,091 2,145 4,255 (1) Technical 699,777 857,479 628,935 1,266,365 1,174,321 City of Burlington 445,325 403,783 412,108 417,626 378,626 (2) Buildings & Grounds 35,900 30,458 28,660 75,195 78,845 Financial Audit 166,451 166,500 175,000 193,500 203,175 (3) Financial/Banking 447,931 407,480 204,212 274,700 130,400 (4) Energy Efficiency Utility 1,745,059 590,884 610,330 320,508 259,500 (5) Other 130,747 95,976 139,791 219,973 257,533 Total Outside Services $4,159,795 $2,977,874 $2,597,244 $3,429,286 $3,308,342 (1) For McNeil Plant. (2) Indirect cost allocation for general government, city attorney, human resources, and racial equity, inclusion and belonging. (3) Beginning in FY26, budget includes Uniform Guidance single audit expenses. (4) FY23-FY24 included monthly fees for customer eCheck and credit card payments. FY26 includes NZE & Grid Reliability revenue bond issuance costs. (5) Offsetting revenues are included in "Other Revenues" to cover these and other related costs. p. 25 Burlington Electric Department Budget for the Year Ending June 30, 2027 Actual Actual Actual Budget Budget Depreciation & Amortization FY23 FY24 FY25 FY26 FY27 Depreciation: Distribution $2,535,278 $2,298,200 $2,403,323 $2,419,400 $2,627,000 General 328,642 426,373 482,520 324,791 381,891 Transmission 72,754 72,754 72,359 74,100 69,300 Gas Turbine, Wind & Solar 283,281 360,213 373,129 380,100 381,100 McNeil 832,876 866,768 886,508 900,900 940,700 Winooski One Hydro 371,289 256,325 251,015 254,200 257,900 Subtotal 4,424,120 4,280,633 4,468,854 4,353,491 4,657,891 Deferred Depreciation Adjustment (1) 1,167,249 1,277,053 656,704 743,771 847,112 Total Depreciation 5,591,369 5,557,686 5,125,558 5,097,262 5,505,003 (1) Sinking fund amortization varies based on bond principal payments. Amortization: Intangible Assets (Software) 41,190 281,421 261,036 262,500 268,400 Winooski One Hydro (1) 496,910 509,410 521,910 534,410 546,910 Regulatory Asset (2) 46,593 49,039 49,039 49,038 30,985 Regulatory Liability (3) 821,720 164,344 Total Amortization 584,693 839,870 1,653,705 845,948 1,010,639 Total Depreciation & Amortization $6,176,062 $6,397,556 $6,779,263 $5,943,210 $6,515,642 (Gain)/Loss on Disposition of Plant $116,431 $129,310 $61,736 $345,940 $443,350 (1) Plant acquisition adjustment ($12M) for the life of the bond. This represents market value (paid) over book value. (2) Uncapitalized labor due to COVID19; per PUC accounting order. (3) McNeil 2019 Turbine Overhaul included in rates. p. 26 Burlington Electric Department Budget for the Year Ending June 30, 2027 Taxes Taxes Actual Actual Actual Budget Budget (000s) FY 23 FY 24 FY 25 FY 26 FY 27 Property Taxes Payment in Lieu of Taxes - BED $1,347 $1,441 $1,586 $1,700 $1,708 Payment in Lieu of Taxes - McNeil 787 825 902 956 935 Property Taxes - Winooski One (1) 485 507 309 328 304 Subtotal - Property Taxes 2,619 2,773 2,797 2,983 2,947 PILOT Tax Rates (2) $2.11 $2.21 $2.42 $2.56 $2.51 Revenue Taxes Gross Revenue Tax (.525%) (3) 331 336 356 382 387 Gross Receipts Tax (.5%) (4) 248 272 285 295 309 Subtotal - Revenue Taxes 579 608 641 676 696 Over/Under Allocation of Social Security Taxes 9 14 (7) 0 0 Childcare Taxes 5 Total Taxes $3,207 $3,396 $3,437 $3,660 $3,643 (1) Based on $15.1M value. (2) FY27 assumes updated values for City grand list and an estimated increase of 6% . (3) Tax to finance operations of Public Service Department and Public Utility Commission. Effective for all utilities (electric, phone, gas, water, and cable). Tax applies to total revenues less resales. Increased to .525% effective FY20. (4) Effective July 1, 1990 for deposit to State of VT "Home Weatherization Assistance Fund." Charged to sellers of heating oil, electricity, gas, and coal (phone, cable, and water excluded). Tax applies to "Sales to Customers" revenue only. p. 27 Burlington Electric Department Budget for the Year Ending June 30, 2027 Dividend Income Actual Actual Actual Budget Budget FY 23 FY 24 FY 25 FY 26 FY 27 VT TRANSCO LLC (1) $ 4,223,991 $ 4,233,600 $ 4,299,758 $ 4,326,594 $ 4,526,562 VELCO (2) 165,945 166,089 165,945 166,224 166,224 VELCO VETCO (3) 1,013 1,206 1,257 900 1,200 Other (4) 8,562 132,097 37,975 0 0 Total Dividend Income $ 4,399,511 $ 4,532,992 $ 4,504,935 $ 4,493,718 $ 4,693,986 (1) FY27 includes net settlement credit from equity purchases financed through VPPSA. (2) Assumes quarterly dividend of $2.88/share on 14,038 shares of Class B and 392 shares of Class C Common Stock. (3) VELCO Class C Preferred Stock, dividend $0.04 on 7,464 shares. (4) Cash distributed to VT Transco, LLC members related to non-utility operations. p. 28 Burlington Electric Department Budget for the Year Ending June 30, 2027 Other Income, Deductions & Actual Actual Actual Budget Budget Capital Contributions FY 23 FY 24 FY 25 FY 26 FY 27 Interest Income - Operating Checking Accounts $156,913 $267,848 $314,480 $223,375 $207,533 Debt Service Reserve Fund-Zions 49,625 61,382 147,265 $108,000 $109,500 Renewal & Replacement Fund-Zions 30,643 55,118 48,620 $35,700 $31,914 Investments (Key Bank & Zions) 257,162 408,108 135,733 $81,483 $559,559 Customer Loans/Other 7,424 19,329 17,547 $17,883 $11,536 Total Interest Income - Operating (1) 501,767 811,785 663,645 466,441 920,042 (1) FY27 assumes slightly lower interest rates, and higher construction fund balance for 2026A Revenue Bond issued in FY26. Other Income Miscellaneous Non-Operating Income CSWD (Waste Wood Yard) (1) 30,000 30,000 30,000 15,000 30,000 City Franchise Fee Admin Billing (2) 17,426 17,754 4,459 5,000 5,000 VELCO Director 19,000 19,000 24,500 30,000 30,000 VPPSA Staff Sharing 1,275 0 0 0 Sub-total Misc. Non-Operating Income 67,701 66,754 58,959 50,000 65,000 Other Deductions (-) BED Donation - Warmth Program (3) (10,000) (10,000) (10,000) (10,000) (10,000) BED Donation - Defeat the Peak (3,000) (3,000) (3,000) (6,000) (3,000) Sub-total Other Deductions (13,000) (13,000) (13,000) (16,000) (13,000) Total Other Income, Net 54,701 53,754 45,959 34,000 52,000 (1) Agreement with Chittenden Solid Waste District. (Annual payments to BED in consideration of BED's operation and maintenance of the site.) (2) City payment to BED for the cost of processing the franchise fee. (3) This is BED's donation (in addition to us forwarding customer donations on billing payments). Capital Contributions/Grants Customer Contributions (1) 735,644 633,230 316,089 1,247,317 267,491 General Grants (14,996) 650,061 1,702,930 0 0 U.S. DOE Building GIANTS Grant 15,332 347,669 421,403 VT DPS ESAP DERMS Grant 45,769 251,978 413,355 Total Capital Contributions/Grants 720,648 1,283,291 2,080,119 1,846,964 1,102,250 (1) FY27 includes Winooski Bridge Rebuild, Cherry Street-Great Streets, & UG OH billable. Total $1,277,116 $2,148,830 $2,789,723 $2,347,405 $2,074,292 p. 29 Burlington Electric Department Budget for the Year Ending June 30, 2027 Interest Expense Actual Actual Actual Budget Budget FY 23 FY 24 FY 25 FY 26 FY 27 General Obligation Bonds (1) $1,799,732 $2,000,998 $1,900,423 $1,881,577 $1,831,046 Revenue Bonds 1,812,616 1,518,279 1,436,314 1,380,039 2,112,046 Total Long Term Debt Interest 3,612,348 3,519,277 3,336,737 3,261,615 3,943,092 Amortization of Debt Discount 114,269 133,942 144,377 150,992 155,616 Amortization of Deferred Debt Costs - Loss 43,415 46,499 42,704 45,313 41,043 Amortization of Deferred Debt Costs - Gain 0 0 0 0 (17,076) Amortization of Debt Premium (342,580) (364,501) (379,625) (375,940) (367,140) Moran Promissory Note (2) 17,867 7,201 6,030 4,848 3,654 Other Interest (3) 4,977 2,593 1,121 12 0 Total Interest Expense $3,450,296 $3,345,011 $3,151,344 $3,086,841 $3,759,188 Debt Outstanding Long Term - Y/E General Obligation Bonds (1) $46,985,000 $45,945,000 $44,765,000 $43,320,000 $41,740,000 Revenue Bonds (4) $35,370,000 $33,435,000 $31,435,000 $50,095,000 $48,634,000 (1) Assumes $3M annual GO Bond. (2) Payment to City of Burlington for remediation expense per 2022 MOU, expiring FY30. (3) Capital Lease from Key Bank for MDMS, expired in FY26. (4) Issued $20M Net Zero Energy and Grid Reliability Revenue Bond in FY26. p. 30 Burlington Electric Department Outstanding Long-Term Debt 100 95 90 85 80 $Million 75 70 65 60 55 50 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 (1) FY13 forward includes $3M annual GO bond. (Voters approved March 2012.) (2) At the end of FY14 all revenue bonds and GO bonds issued prior to 2004 were paid off. (3) FY15 includes $12M Revenue Bond for Winooski One Hydro. (4) FY22 includes $20M Net Zero Energy Revenue Bond. (5) 2014A Revenue Bond matured in FY25. (6) FY26 includes issuance of $20M Net Zero Energy and Grid Reliability Revenue Bond and refunding of 2014A Revenue Bond. p. 31 Burlington Electric Department Budget - FY2027 Actual Actual Actual Budget Budget Labor Overhead FY 23 FY 24 FY 25 FY26 FY27 TOTAL LABOR (1) $12,626,149 $13,027,967 $13,926,966 $14,666,800 $15,008,900 LABOR OVERHEAD Medical Insurance (2) 1,437,496 1,772,325 1,930,820 2,434,000 2,683,800 Dental Insurance (2) 74,747 84,306 87,130 96,700 112,000 Life Insurance (2) 19,768 19,684 20,444 21,200 18,700 Social Security Taxes 906,224 943,751 988,101 1,122,000 1,148,200 Workers Compensation Ins. (2) 329,114 323,880 416,504 441,900 623,900 Childcare Contribution Tax (3) 52,350 64,534 66,039 Pension (2) 1,592,317 1,573,738 1,770,402 1,760,100 1,901,200 Amortization of IBEW pension back payment (4) 87,041 87,041 87,041 87,041 0 Sub-total Labor Overhead 4,446,707 4,804,724 5,352,792 6,027,475 6,553,839 Health Care Buyout (5) 13,063 14,389 15,240 13,000 9,250 Total Labor Overhead $4,459,770 $4,819,113 $5,368,032 $6,040,475 $6,563,089 Labor Overhead Rate 35.32% 36.99% 38.54% 41.18% 43.73% Pension Rate 12.61% 12.08% 12.71% 12.58% 13.29% (1) Includes Overtime and McNeil @ 100%. (2) FY27 per City assumptions. (3) New tax as of July 1, 2024 is 0.44% of wages. (4) Regulatory accounting treatment approved by PUC. Amortization period ended in FY26. (5) $1,000 for non-union employees; $1,250 for IBEW employees per 2022-2026 contract. p. 32 Burlington Electric Department Budget for the Year Ending June 30, 2027 $6,563,089 Labor Overhead Pension 29.0% Medical Insurance 41.0% Workers Comp. Ins. 9.5% Social Security & Childcare Taxes 18.5% Dental Insurance 1.7% Life Insurance 0.3% p. 33 Burlington Electric Department Capital Spending - Net of Capital Contributions 18,000 15,218 15,000 12,000 10,325 10,636 9,773 ($000) 9,000 7,608 8,037 6,705 7,049 6,000 5,183 5,170 4,020 3,000 0 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 Budget FY27 Budget Budget Budget Plant Type FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY25 FY 26 FY 27 Production 1,363 778 928 1,156 1,816 936 2,101 1,310 3,053 4,481 2,898 Other 51 53 6 127 260 345 868 134 Distribution 3,390 1,873 2,791 1,670 1,413 3,191 3,774 4,547 4,941 6,419 5,680 Transmission 3,012 3,020 2,696 671 1,074 0 634 0 577 222 0 General 2,560 1,034 1,193 471 827 1,037 1,400 932 857 3,228 1,924 Total $10,325 $6,705 $7,608 $4,020 $5,183 $5,170 $8,037 $7,049 $9,773 $15,218 $10,636 p. 34 Burlington Electric Department Capital Projects - FY2027 Customer Project Contribution/ Net Project Description Total Grants Cost McNeil Plant (BED 50% Share) Farmhouse Level 2 EVSE 8,936 8,936 Analyzer Upgrades for Chemical Treatment 8,750 8,750 Ash Handling Vehicle 75,000 75,000 AWS Scale Software 7,500 7,500 Boiler Mapping and Tube Replacement 150,045 150,045 Char Ash Conveyor 15,044 15,044 McNeil Controls Server Upgrade 40,037 40,037 ESP Mechanical Field Rebuild 325,074 325,074 Farmhouse Improvements 15,001 15,001 Forestry Vehicle 32,500 32,500 Protection Relays Upgrade 75,092 75,092 Replacement Railcars 25,000 25,000 Rigging Equipment 5,000 5,000 1 Routine Station Improvements 190,204 190,204 Safety Valve Replacements 17,506 17,506 Station Tools and Toolboxes 7,501 7,501 Stormwater System Upgrades 15,001 15,001 Truck Dumper Repair 16,636 16,636 Tubular Airheater Expansion Joint Replacements 27,545 27,545 Wood Handling Front End Loader 375,000 375,000 Perimeter Fence Upgrades 2,502 2,502 Well #2 Recasing 25,038 25,038 Oracle NetSuite FIS Implementation 43,527 43,527 Work & Asset Management System Implementation 10,480 10,480 Total McNeil Plant 1,513,918 0 1,513,918 (1) (311) Structures-$80k, (312) Boiler-$95k, (314) Turbine-$90k, (315) Accessory Equipment-$90k (316) Plant Equipment-$20k (391) Office Equipment-$5k Transmission Plant VT Transco 0 0 Total Transmission Plant 0 0 0 Hydro Production Plant WIN 1 Trash Rack Repair 50,018 50,018 WIN 1 Routine Station Improvements 1 62,075 62,075 WIN 1 Rigging Equipment 5,150 5,150 WIN 1 Lavatory Replacement 30,018 30,018 WIN 1 Fish Lift Repair 60,056 60,056 WIN 1 Turbine Overhaul 30,043 30,043 WIN 1 Headgate Seals and Channels 50,055 50,055 WIN 1 FERC Relicensing 640,638 640,638 Total Hydro Production Plant 928,053 0 928,053 (1) (331) Structures-$17k, (332) Reservoirs, Dam, and Waterway-$17k, (333) Waterwheel, Turbines, and Generators - $10k (334) Accessory Electric Equipment - $8k (335) Misc Power Plant Equpiment - $10k (335) p. 35 Burlington Electric Department Capital Projects - FY2027 Customer Project Contribution/ Net Project Description Total Grants Cost Gas Turbine Plant GT Exhaust Stack Replacement 375,597 375,597 GT Outlet Bucket Replacement Phase 2/4 50,011 50,011 GT Routine Station Improvements 1 16,142 16,142 GT Rigging Equipment 9,011 9,011 GT Exhaust Expansion Joint 5,602 5,602 Total Gas Turbine Plant 456,364 0 456,364 (1) Turbines & Generators-$6k, Accessory Electrical Equipment-$5k, Miscellaneous Power Plant Equipment- $5,000 Other Battery Operated Cable Reel Mover 21,060 21,060 BED Fleet EV Chargers (5) 60,942 60,942 Distributed Energy Resource Management System Implementation 51,975 51,975 Total Other 133,978 0 133,978 Distribution Plant Aerial 634CB Switched Bank 57,007 57,007 636CB Switched Bank 42,135 42,135 Bayview St Rebuild P896-P851 17,837 17,837 Chase Street Rebuild 156,960 156,960 Crombie Street Rebuild 29,472 29,472 Curtis Avenue Rebuild 42,321 42,321 Front Street Rebuild 109,142 109,142 Shore Road Rebuild P3209 to P3194 27,619 27,619 Oak Drive Rebuild 49,712 49,712 Elmwood Ave Rebuild 143D to 917D 126,437 126,437 658,642 0 658,642 Underground Level 2 EV Chargers 181,837 181,837 Level 3 EV Chargers 253,472 253,472 Northshore Drive Rebuild Phase 1 636,156 636,156 Rebuild 2L3 from 927S to Sub #7 179,294 179,294 Rebuild Oakledge Drive 94,378 94,378 Replace #125S/219S/310S Switch 74,264 74,264 Replace UG St. Paul St (Bank to Cherry) 141,410 141,410 Sub #7 Switchgear Replacement 326,514 326,514 Total Underground 1,887,325 0 1,887,325 Other ArcFM UN Upgrade 458,925 458,925 Distribution Transformer - Engineering 16,886 16,886 Distribution Transformer - Purchase 725,000 725,000 Megger S1-1068 Replacement 8,605 8,605 Pine Street Radio Antenna Replacement 59,700 59,700 p. 36 Burlington Electric Department Capital Projects - FY2027 Customer Project Contribution/ Net Project Description Total Grants Cost Queen City Substation SCADA Upgrade 87,737 87,737 Replace Condemned Poles 331,028 331,028 SCADA ADMS Phase IV 603,543 603,543 Siemens NMS System 90,235 90,235 Total Other 2,381,659 0 2,381,659 Customer Driven/City Projects Winooski Bridge Rebuild 35,426 35,426 Winooski Bridge Rebuild (CAFC) 0 (35,426) (35,426) Great Streets - Cherry Street 26,732 26,732 Great Streets - Cherry Street (CAFC) 0 (17,474) (17,474) Total Customer Driven/City Projects 62,158 (52,900) 9,258 Total Distribution Plant - General 4,989,783 (52,900) 4,936,883 Distribution Plant - Blanket Meters Single Phase Meter Purchase 85,000 85,000 Three Phase Meter Installation 16,244 16,244 Three Phase Meter Purchase 10,000 10,000 Single Phase Meter Installation 9,662 9,662 Total Meters 120,906 0 120,906 Underground UG Replacement 77,420 77,420 Replace Utility Holes and Handholes 105,622 105,622 UG Construction - New 19,152 19,152 UG Construction - Billable 144,287 144,287 UG Construction (CAFC) 0 (144,287) (144,287) Total Underground 346,481 (144,287) 202,194 Aerial Overhead Replacement 84,643 84,643 Overhead Construction - New 18,950 18,950 Overhead Construction - Billable 70,304 70,304 Overhead Construction (CAFC) 0 (70,304) (70,304) Total Aerial 173,897 (70,304) 103,593 Lighting Street Lighting 207,892 207,892 Private Area Lighting 15,558 15,558 Total Lighting 223,450 0 223,450 p. 37 Burlington Electric Department Capital Projects - FY2027 Customer Project Contribution/ Net Project Description Total Grants Cost Other Substation Maintenance 18,148 18,148 Replace Failed SCADA Field Equipment 12,371 12,371 Communication Equipment Emergency Repair 15,944 15,944 SCADA Field Equipment Replacement 26,396 26,396 Tools & Equipment - Distribution/Technicians 20,000 20,000 Total Other 92,859 0 92,859 Total Distribution Plant - Blanket 957,593 (214,591) 743,002 Total Distribution Plant 5,947,376 (267,491) 5,679,885 General Plant Vehicle Replacements EV Bucket Truck "Make Ready" Work 76,637 76,637 Forklift EV 147,109 147,109 Total Vehicle Replacements 223,746 0 223,746 Computer Equipment/Software AMI Network Switch Replacements 48,537 48,537 AMI/Certicom Server Replacement 60,507 60,507 IT Forward - FIS Implementation (Operating) 399,042 399,042 IT Forward - Integrated Voice Response (IVR) System 16,412 16,412 IT Forward - MDMS Phase 3 62,476 62,476 IT Forward - SpryCIS-CIS Implementation 549,832 549,832 IT Forward - SpryEngage Customer Portal 59,024 59,024 IT Forward - SpryMobile Work Management Implementation 72,248 72,248 IT Forward - Work & Asset Management Implementation (Operating)173,296 173,296 Pine Street Network Switch Replacement 25,620 25,620 PMR Replacement Batteries 14,420 14,420 WinooskiOne Wi-fi Extension Project 22,595 22,595 Tablets for Distribution 24,010 24,010 UPS Replacement Hardware 19,698 19,698 WiFi Access Point Replacement FY27 12,984 12,984 Substation Network Switch Replacement 22,595 22,595 Stockroom Network Switch Replacement 25,620 25,620 Laptop/Desktop Replacements 67,690 67,690 Monitoring and Domain Controller Servers 15,063 15,063 Conference Room Videoconferencing 8,820 8,820 Total Computer Equipment/Software 1,700,487 0 1,700,487 Total General Plant 1,924,233 0 1,924,233 Total Plant $10,903,922 ($267,491) $10,636,431 p. 38 Burlington Electric Department Budget for the Year Ending June 30, 2027 Debt Coverage Budget Budget ($000) FY23 FY24 FY25 FY26 FY27 Total Operating Revenues 62,937 64,108 67,827 72,668 73,783 Total Operating Expenses 61,998 64,322 68,130 73,138 74,771 Less: Depreciation & Amortization (1) (6,176) (6,398) (6,779) (5,943) (6,516) Less: Gain/Loss (116) (129) (62) (346) (443) Less: Payment in Lieu of Taxes (2,134) (2,266) (2,488) (2,656) (2,643) Total Operating Expenses - Adjusted 53,571 55,530 58,801 64,193 65,169 Net Operating Income - Adjusted 9,366 8,579 9,026 8,475 8,614 Total Other Income 5,628 7,125 7,402 6,841 6,769 (Less) Grant/Customer Income (721) (1,283) (2,080) (1,847) (1,102) Net Income Available for Revenue Debt Service 14,273 14,421 14,348 13,469 14,281 Debt Service on Revenue Bonds 3,748 3,518 2,831 2,825 3,633 Revenue Debt Service Coverage Ratio (2) 3.81 4.10 5.07 4.77 3.93 Net Income Available for Other Debt Service 14,273 14,421 14,348 13,469 14,281 Deduct: Payment in Lieu of Taxes (2,134) (2,266) (2,488) (2,656) (2,643) Adjusted Net Income Available for Other Debt Service 12,139 12,155 11,860 10,814 11,638 Debt Service Revenue Bonds 3,748 3,518 2,831 2,825 3,633 General Obligation Bonds 5,625 6,181 6,345 6,417 6,488 Other 18 7 6 140 128 Total Debt Service 9,390 9,706 9,183 9,381 10,249 Adjusted Debt Service Coverage Ratio 1.29 1.25 1.29 1.15 1.14 (1) Deduct as non-cash expense. (2) Revenue bond covenants require a minimum debt service coverage ratio of 1.25. p. 39 Burlington Electric Department Budget for the Year Ending June 30, 2027 Cash Flow (000s) Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Budget Source 2026 2026 2026 2026 2026 2026 2027 2027 2027 2027 2027 2027 FY 27 BEGINNING BALANCE $13,412 $14,047 $15,337 $14,599 $17,712 $17,063 $17,717 $19,196 $20,500 $19,066 $17,839 $17,437 $13,412 SOURCES OF FUNDS: Total Operating Revenues 6,524 8,457 5,476 4,944 6,599 5,711 5,867 7,646 5,591 4,770 6,724 5,473 73,783 Other Income Dividends 1,084 0 42 1,084 0 42 1,084 0 42 1,084 0 234 4,694 Interest and Other Income 85 88 75 99 80 85 92 67 74 84 66 76 972 Customer Contribution/Grant Income 93 104 159 162 108 108 60 60 64 64 68 52 1,102 Total Other Income 1,262 192 276 1,344 188 235 1,236 128 180 1,232 134 362 6,768 Other Sources of Funds GOB Annual/BAN 3,000 3,000 Revenue Bond 2026 - capital 735 1,132 1,088 1,074 807 722 430 469 440 502 471 138 8,009 Revenue Bond 2026 - T3 rebates 74 62 64 58 87 119 103 95 114 136 117 437 1,465 Total Other Sources of Funds 808 1,194 1,151 4,132 895 841 533 564 554 638 588 575 12,474 TOTAL SOURCES OF FUNDS 22,006 23,889 22,240 25,019 25,394 23,850 25,354 27,534 26,825 25,706 25,284 23,847 106,437 USES OF FUNDS: Total Operating Expenses 5,642 5,611 5,505 5,214 5,727 4,320 4,530 4,583 5,504 5,322 4,857 5,088 61,905 Tier 1 REC Purchase 0 0 0 0 0 0 0 832 0 0 832 0 1,665 Tier 3 Total-RES Compliance Cash Total 74 62 64 58 87 119 103 95 114 136 117 437 1,465 McNeil Turbine Blade for FY28 overhaul 385 385 Small Dam Procurement FY28 overhaul 150 150 Taxes - Gross 31 765 26 23 759 27 28 101 687 410 99 686 3,643 Net Operations Expenses 5,747 6,438 5,595 5,295 6,573 4,466 4,660 5,612 6,305 5,869 5,905 6,747 69,213 Capital Spending BED 746 1,267 1,164 1,155 875 817 527 550 535 817 766 171 9,390 McNeil 502 8 43 17 36 5 125 27 73 337 331 12 1,514 VT Transco, LLC 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Capital Spending 1,249 1,275 1,207 1,172 911 822 652 577 608 1,153 1,097 183 10,904 Debt Service G.O. Bonds 536 536 536 536 543 543 543 543 543 543 543 543 6,488 Revenue Bonds 303 303 303 303 303 303 303 303 303 303 303 303 3,633 Other (Lease & Moran Frame ) 125 0 0 0 0 0 0 0 0 0 0 0 128 Total Debt Service 964 840 840 840 846 846 846 846 846 846 846 846 10,249 TOTAL USES OF FUNDS 7,960 8,552 7,641 7,307 8,331 6,133 6,158 7,034 7,759 7,868 7,848 7,775 90,366 ENDING BALANCE - OPERATING $14,047 $15,337 $14,599 $17,712 $17,063 $17,717 $19,196 $20,500 $19,066 $17,839 $17,437 $16,072 $16,072 p. 40 Burlington Electric Department Budget for the Year Ending June 30, 2027 Actual Actual Actual Budget Budget Cash Coverage FY23 FY24 FY25 FY26 FY27 Cash Accounts - Operating 7,978,811 11,568,638 12,497,092 13,221,009 16,071,768 Cash Accounts - McNeil (1) 641,987 571,758 628,972 492,434 614,239 (Plus) Line-of-Credit Available 5,000,000 10,000,000 10,000,000 10,000,000 10,000,000 Unrestricted Cash and Investments 13,620,798 22,140,396 23,126,064 23,713,443 26,686,007 Total Operating Expenses 61,997,702 64,322,454 68,130,038 73,137,531 74,770,706 (less) Depreciation/Amortization Exp (6,176,061) (6,397,556) (6,779,263) (5,943,210) (6,515,642) (less) Gain/Loss (116,431) (129,310) (61,736) (345,940) (443,350) (less) PILOT (2,133,939) (2,265,941) (2,487,854) (2,655,520) (2,642,884) Adjusted Operating Expenses 53,571,271 55,529,647 58,801,185 64,192,861 65,168,830 Days Cash on Hand (with LOC) 93 146 144 135 149 (1) Budget based on 3-year average actual balances. p. 41 585 Pine Street • Burlington, VT 05401-4891 May 13, 2026 Ms. Jennifer Sloms Economic Development Administration United States Department of Commerce Philadelphia Regional Office Robert Nix Federal Building 900 Market Street, Suite 602 Philadelphia, Pennsylvania 19107 RE: Burlington Board of Electric Commissioners Letter of Support for the City of Burlington Vermont Electric Department’s Request for EDA Release of Federal Interest in Award # 01-79- 14206 Dear Ms. Sloms: The purpose of this letter is to provide the Burlington Board of Electric Commissioners support for Burlington Electric Department’s (BED) request to the Economic Development Administration (EDA) to release its federal interest in BED’s Revolving Loan Fund (RLF) award # 01-79-14206. BED commits to using the RLF for one or more activities that continue to carry out the economic development purposes of Public Works and Economic Development Act (PWEDA). At this time, BED plans to continue operation of the existing RLF program, which supports the economic development purposes of PWEDA. BED’s long-standing energy services programs will continue to support business customers with technical assistance and incentives to improve efficiency and help customers to reduce operating expenses. BED will use the RLF funds as described in the terms of the Defederalization Release Agreement. Sincerely, Lara Bonn,Chair On behalf of the Burlington Board of Electric Commissioners