Massena Electric Department

Pending Approval by the MEUB MASSENA ELECTRIC UTILITY BOARD MINUTES of Thursday, April 20, 2023 Town of Massena Electric Department – 71 East Hatfield Street Present: James Shaw Andrew McMahon, Superintendent Charles Raiti Jeffrey Dobbins, Treasurer Richard Maginn Matt Gray, Deputy Superintendent John Bogosian Margo Rochefort, Deputy Treasurer Rene Hart Patrick Facteau, Town Liaison Eric Gustafson, Attorney Debra Willer, Town Liaison David Grant, Public Chairman Shaw opened the meeting at 1:03 p.m. 1) APPROVAL OF MINUTES: RESOLUTION: The Massena Electric Utility Board hereby approves the minutes of the regular meeting of March 23, 2023 as presented. Moved by John Bogosian - Seconded by Charles Raiti - All in Favor RESOLUTION: The Massena Electric Utility Board hereby approves the minutes of the special meeting of April 6, 2023 as presented. Moved by Charles Raiti - Seconded by John Bogosian - All in Favor 2) OPERATIONS UPDATE: by Matt Gray, Deputy Superintendent A. Safety: MED has not had a lost time injury since June 8th. The number of consecutive days without a lost time accident now stands at 296 days. There were no reportable injuries in March. This brings the number of days without a reportable injury to 659 days. Members of the Line Crew attended a training seminar presented By Lou Gabrielle with NEPPA on such topics as wire pulling and conductor sag best methods. B. Customer Impact Chart: MED experienced a comparatively low amount of Customer Impact Minutes in the month of March with only 512 minutes recorded. The largest Customer Impact was the result of an animal contact at transformer. With the low amount of Customer Impact minutes recorded in March, the 12-month average has decreased slightly and is now 33,941. C. Reliability: MED Crews responded to only six calls during the month of March. One call affected no Customers and was the result of a hit pole, four calls affected one Customer and one call affected more than one Customer. Of the calls received two calls contributed to our monthly CIM total.  Pending Approval by the MEUB The largest Customer impact was the previously mentioned animal contact at a transformer on State Highway 56 that affected 10 Customers for fifty minutes. The second CIM event was the result of a squirrel contact at a transformer feeding a single home. Fortunately, there were crews working in the area and the Customer was affected for only twelve minutes. D. Work Schedule: Crews are addressing issues found as a result of the winter storms that we have experienced over the last few months. They have been installing anchors, straightening poles, and completing follow-up service work. Crews continue to address areas where conductor sag needs to be adjusted. This issue was brought to light during the wind and snowstorms that occurred over the previous winter season. This scope of work will require some time to complete and will serve as fill-in work over the coming months. 3) FINANCIAL REPORTS: by Jeffrey Dobbins, Treasurer A. Write-Offs: RESOLUTION: The Massena Electric Utility Board hereby authorizes the write-off of bad debt totaling $5,519.43 as audited by Mr. Rene Hart. Moved by Rene Hart - Seconded by John Bogosian - All in Favor B. Power Comparison Graph: Power cost were over $531,000, down considerably compared to March 2022 and last month. Supplemental power costs were just $111,500, down from $338,500 in March. 2022. Lower than normal peak resulted in less incremental energy purchased during the month. 6,900 MWh of incremental energy purchased during Mar 2023 compared to 10,675 March 2022. Zone D Average Energy rate was also lower at $16.20/MWh. Impact to customers – Base PPAC for April of 0.63¢/kWh, Supplemental PPAC of 0.68¢/kWh. MWh purchased, over 21,000. Overall temperatures were moderate, resulting in usage to be consistent with previous years. Peak demand 35,150 kW set on March 7th at 7:00 pm. After above average peak demands in Jan and Feb., the March demand was well below the average. Typically, closer to or above 40,000 kW in March. C. Cash Flow: The Operating Fund increased by $223,200. The Operating Fund at month end was $6.2 MM. March receipts were $1.49 MM. Customer payments have picked up. Still receiving LI-HEAP payments. Program extended to April 28th. Interest revenue remains up do to increases to the Federal Fund Rate. March Expenditures totaled over $1.26 MM, this is $348,260 less than budgeted. D. Approval of Bills: RESOLUTION: The Massena Electric Utility Board hereby approves the bills as audited by Mr. Rene Hart totaling $918,529.57 Moved by Rene Hart – Seconded by John Bogosian - All in Favor  Pending Approval by the MEUB 4) COMMITTEE REPORTS: by Andrew McMahon, Superintendent A. Personnel 1. Staff Update: Mr. McMahon noted to the board that one employee would be out for a few weeks due to surgery. Mr. Raiti asked what the implications were for replacing the employee. Mr. McMahon explained that there would be additional overtime to cover the temporary vacancy but that filling the opening on a temporary basis was manageable. Mr. McMahon noted that we would be going forward with hiring summer help at $17/hour. 2. Security Update: Mr. McMahon and Mr. Dobbins gave an update on front office security. They noted that now that the front office doors have been replaced a table top exercise will take place with the village police in early June. B. Finance & Economic Development 1. Energy Efficiency Programs: Treasurer Dobbins reported that the Finance & Economic Development committee met earlier in the week. Energy Answers, the third party performing the energy audits as part of the Energy Makeover program, attended part of the meeting to discuss the agreement between Energy Answers and the Department. Based on the discussion the agreement will be updated to reflect a new rate structure and include additional marketing efforts by Energy Efficiency to promote the programs offered by the Department. The committee also discussed a large lighting project being proposed during the meeting, and adding rebates to the program for heat pumps. Treasurer Dobbins noted the large lighting project will impact a number of locations owned by the Massena Housing Authority. They are looking to change all of the old lighting in each of their buildings. A report was done by Energy Answers and Treasurer Dobbins indicated that the committee will review the report and get back to the board with a proposed energy credit for the project. Customers looking to install heat pumps is increasing. The committee did not have a formal request/proposal for the board on a rebate/credit program for heat pumps and wanted to advise them that it is being considered. The committee will continue to review options with regards to heat pump installations, and have a proposal to the board in the coming months. Treasurer Dobbins also informed the board that Invoice Cloud, the third party handling on-line payments, would be increasing the convenience fee they charge on credit and debit card transactions from $3.95 / transaction to $4.50 / transaction. The convenience fee is set by Invoice Cloud to cover their cost to handle these transactions and deal with the credit card companies. The Department does not receive any proceeds from this fee. A note was added to Invoice Clouds’ webpage informing customers that this change will go into effect on June 1, 2023. Information regarding the updated fee is also being sent to those customers receiving e- bills through Invoice Cloud. C. Engineering & Energy Mr. McMahon explained that all of the items in the engineering Committee portion of the agenda were also covered at the NYAPP meeting. 1. Cybersecurity: Mr. McMahon and Mr. Dobbins discussed the implementation of the Dragos system to supplement existing cyber protection measures. The Dragos product is being used in conjunction with NYPA and a few other NYAPP members.  Pending Approval by the MEUB 2. Forward Energy Procurement: Mr. McMahon has had preliminary conversations with NYPA to get indicative pricing for the Winter of 2024. None of the options presented thus far seem appealing, but he will stay in touch with NYPA and keep the committee and board up-to-date. 3. EAB extra work: Work has resumed on some of the more difficult and dangerous Ash Trees in the community that would impact our lines. We are hopeful that this project will qualify for state reliability money when it finally comes available. 4. NYSERDA Submittals: This process is continuing. 5. Grant Funding CAC/IIJA/IRA: This was the subject of extensive conversation in Saratoga at the NYAPP conference. New York has been slow to make their submittals to the Federal Government on how the state programs will work. 5) LEGAL ISSUES: by Eric Gustafson, Attorney: Mr. Gustafson had no remarks for open session. 6) UNFINISHED BUSINESS: • NYAPP quarterly meeting in Saratoga Mr. McMahon stated he will submit a written report for the board to review. One item he did want to mention now was that the CEO of the NYISO spoke at our dinner. He stated that the ISO seems to believe that achieving the 70% renewable goals by 2040 is achievable but the 2050 goal of 100% is more difficult in their opinion since the required technology does not exist. Mr. Shaw relayed to the board that Mark Saltsman from Liberty Utilities in Massena was invited to attend the meeting. . 7) NEW BUSINESS: Mr. McMahon reminded the board that two auto dealerships are putting in high speed (Level 3) charging stations. This takes significant infrastructure investment from both the Dealership and from MED. As we have discussed previously, supply chains remain a concern. We have looked at the transformers required for these projects. We have made multiple calls to our normal new transformer suppliers and at this moment none of them will even bid on new transformers. Calls have also been made to some firms that we have not dealt with previously and there are no proposals that are acceptable. There are two companies that we have dealt with that have rewound transformers. RESOLUTION: In order to fulfill the proposed EV projects on an acceptable timeline the Massena Electric Utility Board approves purchasing 1 pad mount transformer at a price not to exceed $60,000 and 3 pole mount transforms at a price not to exceed $30,000. Moved by Charles Raiti – Seconded by Richard Maginn - All in Favor 8) ARTICLES OF INTEREST: Mr. McMahon directed the boards attention to the growing variability of both load and generation and the challenges it creates. He also noted that the second article relating to crypto and cannabis is an issue we are seeing with many of our developers.  Pending Approval by the MEUB 9) SCHEDULE OF EVENTS: Next regular meeting scheduled for May 18, 2023 10) PUBLIC COMMENT: 11) EXECUTIVE SESSION: Motion to move into executive session at 2:06 p.m. Moved by Charles Raiti– Seconded by John Bogosian- All in Favor Motion to reopen meeting for public comments at 2:07 p.m. Moved by Charles Raiti– Seconded by John Bogosian- All in Favor Motion to adjourn and move into executive at 2:10 p.m. Moved by Richard Maginn– Seconded by Charles Raiti- All in Favor Motion to move out of executive session at 2:21 p.m. Moved by Richard Maginn– Seconded by Charles Raiti -All in Favor Motion to adjourn at 2:21 p.m. Moved by Richard Maginn – Seconded by Charles Raiti- All in Favor