Massena Electric Department

Approved by the MEUB 1/21/2025 Page |1 MASSENA ELECTRIC UTILITY BOARD MINUTES of Thursday, December 19, 2024, 2024 Town of Massena Electric Department – 71 East Hatfield Street Present: James Shaw - excused Andrew McMahon, Superintendent Richard Maginn Jeffrey Dobbins, Treasurer Rene Hart Matt Gray, Deputy Superintendent Charles Raiti Margo Rochefort, Deputy Treasurer Mark Ryan Raymond Lancto, Town Liaison Eric Gustafson, Attorney - excused Patrick Facteau, Town Liaison - excused Board Member Hart opened the meeting at 1:01 pm 1) APPROVAL OF MINUTES: RESOLUTION: The Massena Electric Utility Board hereby approves the minutes of the regular meeting of November 21, 2024 as presented. Moved by Richard Maginn- 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 906 days. As of November 30th, 2024, MED has been 163 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 only 179 Customer Impact Minutes throughout the month of November. This is one of the lowest levels of CIM in the last 13-months. With this low level of CIM our 12-month average remains relatively unchanged since last month and is now at 14,127. C. Reliability: MED Crews responded to only seven calls throughout the month of November. Four of the calls received contributed to our monthly CIM with five calls affecting only one Customer and two calls affecting more than one Customer. The largest CIM contributor occurred on the 16th when an animal contact at a transformer on Crescent Drive resulted in a 34-minute outage for two Customers. The remaining CIM contributors were due to animal contacts or broken taps during high wind. These calls were small in scope and easily remedied.  Approved by the MEUB 1/21/2025 Page |2 D. Work Schedule: 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 Crews are continuing to address poles in need of replacement on Roosevelt Road and State Highway 37C. Crews have begun Infra-red scanning of all of our overhead facilities and addressing any hotspots that have been found. 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 $6,204.35 as audited by Mr. Rene Hart. Moved by Charles Raiti - Seconded by Mark Ryan - All in Favor B. Power Comparison Graph: Power Costs were $529,000 for the month. November Peak Demand 30,000 kW, low end for Nov., set Nov. 14th at 9:00 am. Third month this year the peak was set in the morning. Low the night before was 20°. MWh purchased, 17,300. Overall a mild month and low end for November. Supplemental Power costs were only $129,560 during Nov. 3,370 MWh of incremental energy purchased. Zone D Average Energy rate was $29.15/MWh. Transmission related expenditures totaled $160,000. UCAP (Unforced Capacity) was over $7,440 in November. 1st month of winter capacity period. Rate was less than $1.00/ kW down from over $4.00 during summer period (May-Oct). Other ISO charges reflect costs for Oct. and were $82,800. Other Transmission charges totaled $69,760. CES totaled $76,480. Impact to Customers in December, Base PPAC 1.0¢/ kWh and Supplemental PPAC of 1.6¢. C. Cash Flow: The Operating Fund increased by $150,000, receipts higher than budgeted and expenses were lower than anticipated. The Operating Fund balance as of November 30th was 7.97 MM. November receipts were over $1 MM, $138,300 more than budgeted. LI-HEAP opened in Nov. and the Department received 2 LI-HEAP payments. $30,380 in interest revenue included interest and discounts earned on Treasuries owned by the Department. November expenditures totaled $888,490, $148,910 less than budgeted. RESOLUTION: The Massena Electric Utility Board hereby approves the bills as audited by Mr. Rene Hart totaling $961,602.15. Moved by Charles Raiti – Seconded by Mark Ryan- All in Favor 4) COMMITTEE REPORTS: by Andrew McMahon, Superintendent A. Personnel 1. Mr. McMahon presented a resolution for Susan Hatch who announced her retirement from Massena Electric after 35 years. Approved by the MEUB 1/21/2025 Page |3 RESOLUTION: Whereas, the Massena Electric Department has been in operation since 1981; Whereas, Massena Electric's original motto was “the Spirit of Service”; Whereas, Susan Hatch joined MED in April of 1989; Whereas, after over 35 years Susan is one of the longest serving employees; Whereas, Susan has served in multiple roles including Meter Reader and Senior Clerk; Whereas Susan’s personality always resonated with customers in whatever role she did and in her heart always maintained the Spirit of Service; Whereas Susan retired effective December 14, 2024; Therefore, Be It Resolved, The Massena Electric Utility Board hereby wishes Susan a long, healthy and happy retirement! Moved by Mark Ryan – Seconded by Charles Raiti- All in Favor B. Finance & Economic Development 1. Energy Efficiency Programs: Treasurer Dobbins noted that there had been some interest in audits recently. The requests included a commercial account and a landlord looking to make improvements at some of their rental properties. Weatherization Kits – to date 346 kits have been distributed with 120 kits remaining. 2. S&S Software Upgrade (Cloud servicing etc.): Treasurer Dobbins updated the board on the timeline for this upgrade. Due to delays by S&S in getting some of the test environment ready, the upgrade has been delayed until early May 2025. The transition to the new system was originally planned for early Feb 2025. Most of the delay is related to the financial management side of the software. S&S indicated that the changes required to this part of the system, which includes payroll, inventory, and financial statement reporting, were taking longer than expected. Both staff and S&S agreed it is important to make sure these sections are updated properly and delaying the implementation date will allow S&S time to make the updates and the Department’s staff time to test the new system. 3. Fund Transfer: Treasurer Dobbins reviewed the status of the reserve funds held by the Department and noted that the balances for these funds could be found at the bottom of the cash flow. In 2024 the Department expended roughly $500,000 from the Depreciation Fund. The expenditures included the purchase of 5 vehicles during 2024 and some payments towards the computer system upgrade. Based on these expenditures Treasurer Dobbins recommended to the Finance Committee that a contribution be made from the Operating Fund to replenish the Depreciation Fund. RESOLUTION: The Massena Electric Utility Board hereby authorizes the transfer of $500,000 from the Operating Fund to the Depreciation Fund. Moved by Richard Maginn – Seconded by Charles Raiti- All in Favor  Approved by the MEUB 1/21/2025 Page |4 C. Engineering & Energy 1. Cybersecurity: Treasurer Dobbins reported that there were no issues since the last board meeting and that staff, and Adirondack Tech personnel, continue to monitor the network. He also discussed recent upgrades to the office HVAC system. The upgrade included changes to the software used to monitor the system and control the HVAC equipment installed. Steps were taken to isolate the software and equipment so it does not pose a threat to the other parts of the Department’s network. Mr. McMahon informed the board that NERC has been sending out schedules for self- certification. It appears that we do not have to self-certify this year, but Mr. Dobbins and our staff continue to make sure we are compliant. 2. NYSERDA Projects: Mr. McMahon described progress on PON 5737 which we have been approved for and the potential for PON 5896. The first program is for research of potential Projects and the second is for implementation of projects. On the implementation projects, we would be responsible for 1/3 of the total project cost. 3. Grant Funding, Federal and State: We are still hoping for funding under the PACES grant. Unfortunately, it is a wait and see situation right now and we have some potential challenges. 4. AMI Procurement Update: Mr. McMahon is working with Mr. Gustafson on finalizing the master agreement and contract language with Eaton. In the interim, Mr. McMahon has signed a letter of intent with Mr. Gustafson's review that will lock in the pricing that was initially offered last Spring. 5. Tree Power Program: Mr. McMahon noted that the utility had supported the planting of a number of trees this fall. He said he is hopeful of getting more grants to support our work next year. 5) LEGAL ISSUES: by Eric Gustafson, Attorney: Mr. Gustafson had no remarks for open session. 6) UNFINISHED BUSINESS: History of MED Video - Mr. McMahon said that he and Mr. Winfrey are continuing to work on this project. They have a great deal of content and now it is up to Mr. Winfrey to begin the editing process. Policy Review - There were no questions or comments. RESOLUTION: The Massena Electric Utility Board hereby approves the Massena Electric Department policies as presented. Moved by Mark Ryan – Seconded by Richard Maginn – All in Favor 7) NEW BUSINESS: St. Lawrence Tour - Mr. Ryan had spoken to NYPA officials at the Rockville Centre meeting about the potential to tour the St. Lawrence FDR power project. NYPA has offered some dates In May that will work for them. Mr. McMahon will try to coordinate the dates of those board Members who are interested in the tour.  Approved by the MEUB 1/21/2025 Page |5 8) ARTICLES OF INTEREST: Mr. McMahon discussed the articles that were included in the board packet. Of particular note is the proposed rate increases by NYPA. We are very concerned about the impacts that this NYPA increase will have on our rate payers. Our trade associations have been working with NYPS to try to assure that any increase is fair. 9) SCHEDULE OF EVENTS: Next regular meeting scheduled January 21, 2024 10) PUBLIC COMMENT: 11) EXECUTIVE SESSION: Motion to move into executive session at 1:50 pm. Moved by Charles Raiti – Seconded by Richard Maginn - All in Favor Motion to move out of executive session at 1:56 pm. Moved by Richard Maginn – Seconded by Mark Ryan -All in Favor Motion to adjourn at 1:56 pm Moved by Mark Ryan – Seconded by Charles Raiti - All in Favor Approved by the MEUB 1/21/2025 Customer Impact Customer Minutes Top Quartile 12-Month Average 90000 80000 70000 60000 50000 40000 30000 20000 10000 0 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Page 7  Power Comparison Oct-2023 to Nov-2024 Approved by the MEUB 1/21/2025 kW Supplemental NYPA Actual kW Purchased vs. Monthly Min & Max 55,000 50,000 45,000 40,000 2019- 2023 Max kW 35,000 30,000 25,000 2019 - 2023 Min kW 20,000 15,000 10,000 5,000 - Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 MWh Actual MWh Purchased vs. Monthly Min & Max Supplemental NYPA 30,000 27,500 25,000 22,500 2019 - 2023 Max MWh 20,000 17,500 2019 - 2023 Min MWh 15,000 12,500 10,000 7,500 5,000 2,500 - Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Total Power Costs vs. Monthly Min & Max $2,000,000 NYPA CES Transmission & ISO Supplemental $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 2019 - 2023 Max $ $600,000 $400,000 $200,000 2019- 2023 Min $ $- Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 % NYPA MWh 78% 62% 58% 56% 59% 62% 70% 83% 75% 75% 76% 90% 88% 78% % NYPA $ 38% 33% 26% 17% 25% 29% 37% 39% 34% 33% 32% 41% 39% 36% PPAC $0.008 $0.008 $0.008 $0.015 $0.012 $0.009 $0.006 $0.010 $0.013 $0.011 $0.012 $0.009 $0.007 $0.010 Supp PPAC $0.000 $0.014 $0.019 $0.045 $0.020 $0.014 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.016 CES $0.004 $0.004 $0.004 $0.004 $0.004 $0.003 $0.004 $0.004 $0.004 $0.004 $0.004 $0.004 $0.004 $0.005  Approved by the MEUB 1/21/2025 MASSENA ELECTRIC DEPARTMENT STATEMENT OF CASH FLOW PERIOD ENDING NOVEMBER 30, 2024 BUDGET vs. ACTUAL MONTH YEAR TO DATE over/(under) over/(under) ANNUAL ACTUAL BUDGET ACTUAL BUDGET BUDGET 1 OPERATING FUND 2 BEGINNING FUND BALANCE 7,820,233 348,999 7,762,534 7,762,534 3 4 CASH RECEIPTS: 5 RECEIPTS FROM CUSTOMERS 1,003,108 127,908 12,354,724 (2,181,676) 15,853,200 6 REIMBURSED WORK 0 (3,700) 68,294 26,994 45,000 7 RVRDA CONSULTING FEE 5,000 2,500 27,500 0 30,000 8 INTEREST REVENUES 30,380 10,580 344,869 127,069 237,600 9 TOTAL CASH RECEIPTS: 1,038,488 137,288 12,795,387 (2,027,613) 16,165,800 10 11 CASH EXPENDITURES: 12 SALARIES & WAGES 207,627 53,627 2,006,457 158,457 2,002,000 13 HEALTH INSURANCE 42,821 (180) 473,198 (41,802) 515,000 14 FICA & NYS RETIREMENT 14,660 3,060 383,814 2,314 393,100 15 Salaries & Employee Benefits 265,107 56,507 2,863,469 118,969 2,910,100 16 17 NYPA POWER 159,616 (8,484) 1,744,924 (29,976) 1,940,000 18 SUPPLEMENTAL POWER 56,704 (91,296) 2,281,653 (1,735,847) 4,428,300 19 ISO/TRANSMISSION 167,168 (17,232) 1,927,480 (8,720) 2,119,400 20 CES 50,441 (5,259) 677,841 (33,459) 777,700 21 Power & ISO 433,929 (122,271) 6,631,898 (1,808,002) 9,265,400 22 23 CONTRACT SERVICES 8,846 (8,254) 176,967 (11,733) 205,800 24 CONSULTING SERVICES 10,247 3,147 72,195 (5,905) 85,200 25 LEGAL SERVICES 20,512 2,112 176,471 (25,229) 220,100 26 FINANCIAL SERVICES 0 0 30,248 848 32,900 27 NYS SALES TAX 33,474 (2,526) 498,705 (76,295) 627,000 28 REAL ESTATE TAXES 0 0 615,424 (12,476) 627,900 29 POSTAGE 4,569 (1,131) 42,871 (19,829) 68,400 30 TELEPHONE 6,287 4,087 72,566 49,366 25,400 31 CONSUMER REFUNDS 18,448 14,048 93,053 44,653 52,800 32 INSURANCE 0 0 189,041 (45,259) 234,300 33 OTHER OPERATING EXP. 34,718 (7,782) 511,539 45,039 611,500 34 Paid to Suppliers & Vendors 137,101 3,701 2,479,082 (56,818) 2,791,300 35 36 MATERIALS & SUPPLIES 15,923 (42,777) 352,117 (293,583) 704,400 37 DEBT SERVICE 0 0 0 0 0 38 Contrib. to Depr Fund/Capital Exp. 36,429 (44,071) 261,049 (623,451) 965,000 39 CONTRIB. TO INS FUND 0 0 0 0 0 40 CONTRIB. to Post Retire. Hlth Ins Fund 0 0 0 0 0 41 ENERGY EFFICIENCY 0 0 75 75 206,900 42 Utility Investment & Other Activities 52,353 (86,847) 613,241 (916,959) 1,876,300 43 44 TOTAL CASH EXPENDITURES: 888,490 (148,910) 12,587,691 (2,662,809) 16,843,100 45 46 ENDING FUND BALANCE 7,970,230 7,970,230 635,197 7,085,234 47 48 CHANGE IN FUND BALANCE: 149,998 207,697 (677,300) 49 Monthly Change YTD Change 50 DEPRECIATION FUND BALANCE: 754,586 1,463 (517,115) 51 LIABILITY & CASUALITY FUND BALANCE: 929,933 0 13,350 52 POST RETIRE. HLTH INS. FUND BALANCE: 1,686,097 6,296 76,801 53 ENERGY EFFICIENCY FUND BALANCE: 73,204 (17,456) (29,282)