Massena Electric Department

Pending Approval by the MEUB Page |1 MASSENA ELECTRIC UTILITY BOARD MINUTES of Wednesday, September 18, 2024 Town of Massena Electric Department – 71 East Hatfield Street Present: James Shaw Andrew McMahon, Superintendent – via Zoom Richard Maginn Jeffrey Dobbins, Treasurer John Bogosian-Excused Matt Gray, Deputy Superintendent Charles Raiti Margo Rochefort, Deputy Treasurer Rene Hart Raymond Lancto, Town Liaison Eric Gustafson, Attorney Patrick Facteau, Town Liaison Public, David Grant – via Zoom Vendor Rep O’Leary, from Tantalus – via Zoom Chairman Shaw opened the meeting at 12:00 pm 1) APPROVAL OF MINUTES: RESOLUTION: The Massena Electric Utility Board hereby approves the minutes of the regular meeting of August 21, 2024 as presented. Moved by Rene Hart- Seconded by Charles Raiti - All in Favor 2) OPERATIONS UPDATE: by Matt Gray, Deputy Superintendent A. Safety: MED has not had a lost time injury since June 8th, 2022. The number of consecutive days without a lost time accident now stands at 815 days. As of July 31st, 2024, MED has been 72 days without a reportable injury. MED experienced a reportable injury on June 20th when an Employee cut their forearm while stripping wire. The Employee is currently working with no lingering effects from the injury. B. Customer Impact Chart: MED Customers experienced 78,884 Customer Impact Minutes throughout the month of August. This is one of the largest CIM totals in recent memory and is the result of a month filled with active weather. The 12-month average has also increased and now sits at 17,892. An increase of approximately fifteen hundred since last month. C. Reliability: MED Crews responded to fourteen calls in the month of August, ten of which contributed to our monthly CIM total. The majority of the of CIM contributing calls were the result of adverse weather such as lightning and wind. Of the fourteen calls received, one call affected no Customers, seven calls affected only one Customer and six calls affected more than one Customer. The largest customer impact was the result of a pole fire and primary wire down due to a failed insulator on Pontoon Bridge Road. Although the recloser loop scheme back fed half of the affected area within two-minutes of the interruption and restored power to five hundred seventeen Customers, six hundred and thirty-two Customers experienced an outage of one-hour thirty-one minutes while the repair was made. The other large CIM contributor was the result of a failed insulator on St Hwy 420 that caused a sixty-three-minute outage for four hundred fifty-one Customers. The remainder of the calls involved minimal Customer impact and were easily addressed.  Pending Approval by the MEUB Page |2 D. MED staff continue to work with representatives from Air Products to install a temporary feed to the site to support construction activities. This project will entail the installation of a three- phase primary line extension and primary metering arrangement. This project is currently in the design review phase. MED staff and Legal Counsel have secured an easement to facilitate the relocation of overhead primary across private property on Fregoe Road. MED staff has also submitted a work permit with NYPA for activities within their Haverstock-Willis Right of way. This line relocation is being completed at the request of NYPA and is part of the NYPA Smart path project. Once the permitting has been completed MED Crews hope to complete the project this fall. 3) FINANCIAL REPORTS: by Jeff Dobbins, Treasurer A. Write-Offs: RESOLUTION: The Massena Electric Utility Board hereby authorizes the write-off of bad debt totaling $4,322.79 as audited by Mr. Rene Hart. Moved by Richard Maginn - Seconded by Charles Raiti - All in Favor B. Power Comparison Graph: Power Costs were $535,000 for the month. August Peak Demand 31,220 kW, very similar to previous years and 300 kW less than June & July Peak. Set on Aug. 2nd at 4:00 pm, part of a warm stretch in the 80’s. MWh purchased, 15,770, similar to previous years. Lower than July, cooler temperatures through the remainder of the month. Supplemental Power costs were less than anticipated for August. 3,800 MWh of incremental energy purchased. Zone D Average Energy rate was $33.00/MWh, down from the $38/MWh paid in July. Transmission related expenditures were higher, UCAP (Unforced Capacity) was over $38,000 in August. Other Transmission charges were lower compared to July and totaled $85,000. CES totaled $54,260. Impact to Customers PPAC of 1.2¢/ kWh in September. C. Cash Flow: The Operating Fund decreased by $85,000. The Operating Fund as of August 30th is $7.9 MM. August receipts were over $1 MM, $83,0000 less than budgeted. Sales remain less than budgeted. Interest revenue continues to be higher than budgeted, offsetting some of the lower sales. August expenditures totaled $1 MM, $113,000 less than budgeted. RESOLUTION: The Massena Electric Utility Board hereby approves the bills as audited by Mr. Rene Hart totaling $1,147,280.55 Moved by Rene Hart – Seconded by Richard Maginn- All in Favor 4) COMMITTEE REPORTS: by Andrew McMahon, Superintendent A. Personnel 1. Staff Update: Mr. McMahon advise the board at the staff is healthy and that there are no emergent areas of concern. Pending Approval by the MEUB Page |3 B. Finance & Economic Development 1. Energy Efficiency Programs: a. Commercial/Residential update: Treasurer Dobbins reported that there were no credit requests and no audits performed since the last meeting. He did report that the letter related to the Attic Insulation program was updated and would be sent out potential participants in the next few days. This program was approved earlier this year and would target heating customers on circuits 61 and 2303. b. Weatherization Kits: Deputy Treasurer Rochefort reported to the Board that there were less than 50 weatherization kits remaining from last year. To replenish the supply for the upcoming heating season, Ms. Rochefort recommended that 400 kits be purchased. RESOLUTION: The Massena Electric Utility Board hereby authorizes the purchase of 400 weatherization kits at a cost of $26.85/Kit totaling $10,740.00, to be paid out of the Energy Efficiency Fund. Moved by Rene Hart – Seconded by Charles Raiti – All in Favor 2. S&S software upgrade (Cloud servicing etc.): Initial training on the new billing and financial management software, enQuesta v6, occurred earlier this month. Treasurer Dobbins indicated that prior to the training S&S had done a data cut to start building the new database. The training utilized the information from that data cut and the next phase would be testing of the new system. The testing is expected to begin in the next few days and would continue into October. All staff members that use enQuesta will be involved in the testing. 3. KeyBank Credit Card Change: Approval of the new credit card was delayed due to an error with the application. Treasurer Dobbins noted that error was by KeyBank staff assisting with the filing of the application and that a corrected application had been submitted. 3. August Billing Error: Earlier in the month Superintendent McMahon and Treasurer Dobbins reached out to the board to inform them of an overcharge on the August Bills. The overcharge was related to an error when calculating Purchase Power Adjustment Charge. Treasurer Dobbins reported that he used the incorrect amount for the kWh purchased during July, resulting in an overstated PPAC in August. The error was not noticed until after all of the invoices for August had been issued. The error impacted all customers and instead of making an adjustment to the September calculation, Treasurer Dobbins worked with the billing software provider to refund all customers the exact amount of the overcharge, including sales tax. The refund was applied to all accounts prior to bills be rendered in September and before any finance charges were applied to customers that had arrears. 4. 2025 Draft Budget: Treasurer Dobbins reviewed the 2025 Draft Budget included with the board packet. The draft included projected deficit for 2024 and an additional deficit in 2025. He noted that the projected 2024 deficit was more than what was budgeted, even though total expenditures are expected to be lower than budgeted for the year. Power costs through August are less than budgeted by more than $1.2 MM. These lower costs directly impact sales, which are also less than budgeted contributing to a larger deficit for 2024. Sales are also down compared to 2023. Projected kWh sold to the Department’s traditional customers is expected to be under 195,000 MWh in 2024. This is over 5,000 MWh less than what was budgeted. Pending Approval by the MEUB Page |4 Capital expenditures for 2024 are also projected to be higher, adding to the projected deficit. The software upgrade of the billing and financial management system, and expenditures related to the AMI, are both higher than budgeted for 2024. The 2025 Budget showed a deficit of over $4 MM. Treasurer Dobbins noted that this was a preliminary budget and that management would be meeting with both the Finance Committee and Engineering Committee to review the budget in more detail. Treasure Dobbins did note that significant capital expenditures were planned for 2024. This includes the bulk of the expenditures related to the AMI project, $1.5 MM, and the purchase of a new digger truck, $325,000. Board member Raiti did ask if there would be a need for a rate increase based on the projected deficits. Treasurer Dobbins noted that it had been 9 years since the last increase and that he intended to initiate discussions with NYPA regarding a review of the Department’s rates. C. Engineering & Energy 1. Cybersecurity: Treasurer Dobbins reported that the new Dragos server was received and installed. The server is part of the Department’s partnership with NYPA and its community defense initiative. The Dragos program is monitoring traffic on the Department’s network and to date no unwanted traffic has been identified. 2. EAB extra work: Mr. McMahon pointed out to the board that while we are still working on EAB where required, but we are trying to minimize work that will be covered by the DEC grant that we received. 3. NYSERDA projects: Staff has received word that we will get funding to study the 2305 project that would relieve load on circuit 2301 (Louisville), circuit 2303 (SH 420 area), as well as circuit 61 in the homecroft area. All of which are heavily loaded. 4. Grant funding, Federal and State: Staff continues to work on the PACES grant to support the AMI project. 5. QEI SCADA software upgrade: Deputy Superintendent Gray reported that the new system was working well and that QEI had addressed the remaining follow-up items from the upgrade. 6. Trailer purchase: The sales representative was on-site earlier in the month to give a demonstration of the wire-pulling trailer. The Department’s line crew was able to see how the new trailer would work and ask questions of the vendor. Deputy Superintendent Gray commented that it was a productive session and that the trailer is expected to be a helpful asset to the line crew. 7. AMI procurement update: Mr. McMahon explained that with the help of PSE staff has narrowed the options down to two vendors. Both systems provide the key functions MED is seeking. Specifically, having more situational awareness of load, control over water heaters and elevate our ability to respond to outages. To that end Mr. McMahon suggested that the board approve a do not exceed number of $2.65MM which will cover the cost of either of the two finalists. Staff would then work with PSE and the engineering committee to select the successful vendor.  Pending Approval by the MEUB Page |5 RESOLUTION: The Massena Electric Utility Board approves the purchase of an AMI system, pending final approval by the Engineering Committee, at a cost not to exceed $2,650,000. Moved by Charles Raiti – Seconded by Rene Hart - All in Favor 8. Tree Power Program: Staff placed an order for $2900 with NYPA to continue our commitment to the environment and to the community. 5) LEGAL ISSUES: by Eric Gustafson, Attorney: Mr. Gustafson had no remarks for open session. 6) UNFINISHED BUSINESS: History of MED Video - Mr. Raiti, Mr. Hart and Mr. McMahon met with Elijah Winfrey who is producing the history of MED. Elijah will be meeting with Judge Nicandri this month to move the project forward. 7) NEW BUSINESS 8) ARTICLES OF INTEREST: 9) SCHEDULE OF EVENTS: Next regular meeting scheduled October 21, 2024 10) PUBLIC COMMENT: 11) EXECUTIVE SESSION: Motion to move into executive session at 12:56 pm. Moved by Rene Hart – Seconded by Richard Maginn - All in Favor Motion to move out of executive session at 1:15 pm. Moved by Charles Raiti – Seconded by Rene Hart -All in Favor Motion to adjourn at 1:15 pm Moved by Rene Hart – Seconded by Charles Raiti - All in Favor  MASSENA ELECTRIC DEPARTMENT 2025_Draft_Budget Draft 9/16/2024 2023 Actual 2024 Budget Projected 2024 2025 Budget % Change % Change 1 REVENUES from Budget Projected 2 RECEIPTS FROM CUSTOMERS $ 13,110,347 $ 15,853,200 $ 13,547,100 $ 13,574,700 3 REIMBURSED PROJECTS 461,152 45,000 60,000 45,000 4 RVRDA CONSULTING FEE 30,000 30,000 30,000 30,000 5 INTEREST INCOME 262,514 237,600 275,500 193,200 6 TOTAL REVENUES $ 13,864,013 $ 16,165,800 $ 13,912,600 -13.9% $ 13,842,900 -0.5% 7 8 EXPENDITURES 9 SALARIES & WAGES $ 1,907,899 $ 2,002,000 $ 2,147,600 $ 2,106,000 10 HEALTH INSURANCE 482,261 515,000 507,900 586,800 11 FICA & NYS RETIREMENT 343,248 393,100 406,600 458,300 12 Salaries & Employee Benefits $ 2,733,409 $ 2,910,100 $ 3,062,100 5.2% $ 3,151,100 2.9% 13 14 NYPA POWER $ 1,893,604 $ 1,940,000 $ 1,900,800 $ 2,005,200 15 INCREMENTAL POWER 2,142,970 4,428,300 2,451,600 3,724,900 16 ISO/TRANSMISSION 1,854,670 2,119,400 2,263,400 2,221,900 17 CES - Clean Energy Standard 735,987 777,700 752,800 788,700 18 Power & ISO $ 6,627,231 $ 9,265,400 $ 7,368,600 -20.5% $ 8,740,700 18.6% 19 20 CONTRACT SERVICES $ 206,692 $ 205,800 $ 212,100 $ 219,000 21 CONSULTING SERVICES 110,944 85,200 80,900 137,200 22 LEGAL SERVICES 178,796 220,100 194,600 223,600 23 FINANCIAL SERVICES 29,286 32,900 33,900 34,400 24 NYS SALES TAX 535,541 627,000 536,000 534,000 25 REAL ESTATE TAXES 614,157 627,900 615,600 628,700 26 POSTAGE 52,979 68,400 61,200 64,800 27 TELEPHONE 30,707 25,400 78,800 91,200 28 CONSUMER REFUNDS 85,782 52,800 75,000 50,000 29 INSURANCE 226,604 234,300 208,400 225,800 30 OTHER OPERATING EXP. 527,434 611,500 668,300 612,600 31 Paid to Suppliers & Vendors $ 2,598,924 $ 2,791,300 $ 2,764,800 -0.9% $ 2,821,300 2.0% 32 33 MATERIALS & SUPPLIES $ 595,362 $ 704,400 $ 669,200 $ 703,200 34 DEBT SERVICE: 35 PRINCIPAL 36 INTEREST 37 Contrib. Depr Fund/Capital Exp 103,452 965,000 1,378,500 2,259,500 38 CONTRIB. TO INS FUND - - - - 39 CONTRIB. to Post Retire. Hlth Ins Fund - - - - 40 ENERGY EFFICIENCY (18,673) 206,900 208,600 215,100 41 Utility Investment & Other Activities $ 680,141 $ 1,876,300 $ 2,256,300 20.3% $ 3,177,800 40.8% 42 43 TOTAL EXPENDITURES $ 12,639,705 $ 16,843,100 $ 15,451,800 -8.3% $ 17,890,900 15.8% 44 45 CASH SURPLUS (DEF.) $ 1,224,308 $ (677,300) $ (1,539,200) $ (4,048,000) 46 47 Operating Fund Balance (12/31) $ 7,762,534 $ 7,085,234 $ 6,223,334 $ 3,714,534  2025_CapitalBudget_Draft(2024-9-16) MASSENA ELECTRIC CAPITAL PLAN Revised PROJECT / ITEM 2024 2024 Labor 2024 2024 Labor 2025 2025 Labor Information Technology (IT)Capital Plan Copier $ - $ - $ - Software Upgrade (Billing & Financial) $ 125,000 $ 413,000 $ 58,000 Server/Cyber Security $ 10,000 $ 10,000 $ 10,000 Operations - Equipment Fault / Load Locator $ - $ - $ - Underground Locator $ 6,500 Mapping Software Upgrade/Cloud Hosting $ 15,000 System Upgrades SCADA Upgrade $ 100,000 $ 100,000 $ - Caravan Dr Upgrades $ 105,000 $ 10,000 $ - $ - $ - Underground Extenstion, T-o Louisville $ - $ - $ 35,000 $ 15,000 High Voltage Switches Engstrom $ - $ - $ - Low Voltage Switches Engstrom $ - $ - $ - Fiber Upgrade Grasse River $ 115,000 $ - $ 115,000 Fiber Upgrade Engstrom $ - $ - $ 65,000 Re-Conductor Circuit 2303 $ 20,000 $ 10,000 $ - $ 20,000 $ 10,000 AMI - Engineering & Phase I $ 275,000 $ 500,000 $ 15,000 $ 1,500,000 $ 150,000 Vehicles Wire Pulling Trailer $ 90,000 $ 102,200 $ - Bucket Truck/Digger $ - $ - $ 325,000 Passenger Vehicle $ 70,000 $ 59,600 $ 55,000 Pickup $ 55,000 $ 213,000 $ 55,000 Other Property Improvements $ 25,000 $ 25,000 Garage Floor Repair $ - $ 40,000 $ - Grounds Improvements $ - $ - Surveillance / Access control upgrades $ - $ - $ - Less: Salvage Value ($25,000) $ (59,300) $ (25,000) Depreciation Fund $ 965,000 $ 20,000 $ 1,378,500 $ 15,000 $ 2,259,500 $ 175,000