Massena Electric Department

Approved by the MEUB on 4/21/2025 Page 1 MASSENA ELECTRIC UTILITY BOARD MINUTES of Thursday, March 20, 2025 Town of Massena Electric Department – 71 East Hatfield Street Present: James Shaw Andrew McMahon, Superintendent Richard Maginn Jeffrey Dobbins, Treasurer Rene Hart Matt Gray, Deputy Superintendent Charles Raiti Margo Rochefort, Deputy Treasurer Mark Ryan Patrick Facteau, Town Liaison @ 1:00pm Eric Gustafson, Attorney Kristy Baker, Town Liaison @ 1:00pm BST Auditors – Bill Freitag Trevor Carroll Jeremy DeBarr Timothy Biernacki Chairman Shaw opened the meeting at 12:03 pm Annual Audit Review (12:00 pm – 1:00 pm) 1) APPROVAL OF MINUTES: RESOLUTION: The Massena Electric Utility Board hereby approves the minutes of the regular meeting of February 20, 2025 as presented. Moved by Richard Maginn- Seconded by Mark Ryan - 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 996 days. As of February 28th, 2024, MED has been 253 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. Although no one was injured, MED experienced a near miss on February 25th when one of our bucket trucks was involved in a motor vehicle accident. The crew was responding to an outage and was travelling west on State Highway 37 when a truck entered the highway from Willard Road and into the bucket trucks lane. The two vehicles collided and our truck came to rest on its passenger side. The other vehicle also came to rest in the ditch. The two MED crew members involved were not injured however were sent to the hospital for precautionary evaluation. No issues were found with either employee. The driver of the second vehicle was taken from the scene via ambulance. Although we are awaiting the final accident report from the New York State Police, all indications suggest that MED is considered to be not at fault. B. MED Customers experienced only 4,233 Customer Impact Minutes (CIM) throughout the month of February. Given the amount of Customer Impact Minutes in February, the 12-month average has increased slightly and is now at 20,914.  Approved by the MEUB on 4/21/2025 Page 2 C. Reliability: MED Crews responded to only eight calls in the month of February, with only three calls affecting our Customer Impact Minute total. Of the eight calls received one call affected no customers, six calls affected only one customer and one call affected more than one customer. The largest customer impact was due to a failed insulator and pole fire on County Route 39 in Louisville that affected ninety-six customers for forty-three minutes. The remainder of the calls received in February were relatively insignificant and easily remedied. D. Work Schedule: Crews have completed repairs to hotspots found during our annual IR scanning. In all, MED crews addressed twenty-eight primary hotspots and forty-six secondary hotspots. Crews are also continuing to replace conventional tie insulators with vise top insulators with a focus on mainline, wooded and wind prone areas 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 $1,340.51 as audited by Mr. Charles Raiti. Moved by Rene Hart - Seconded by Charles Raiti - All in Favor B. Power Comparison Graph: Power Costs were over a $1.58 MM for the month. Highest total for the month of February, even higher than 2014, 2015 and 2022 (5-year max). February Peak Demand was over 44,300. Slightly higher than Jan. peak and 650 kW lower than 5-year high set in 2022, 5-year max was 49,330 from 2022 and minimum on graph was from 2023. MWh purchased, over 23,480. High end for February and over 1,200 MWh more than 2024. 5-year max was from 2022 (over 24,000 MWh). Jan & Feb 2025 MWh purchased totaled 49,660 and are the 4th highest total for the Department. 1st – 2022 (53,115 MWh), 2nd – 2015 (52,400), and 3rd – 2014 (49,900). Supplemental Power costs were over $988,700 for February. 11,000 MWh of incremental energy purchased, 2,000 more than amount purchased in 2024. Zone D Average Energy rate was $88/MWh (additional graph from Feb. showed this). Transmission related expenditures totaled $354,700. Up from Jan. and compared to Feb. 2024. Reflects constraints on the system and these costs were paid by all electric customers in the state. Cost standpoint Jan. & Feb. 2025 represents the highest total for a 2-month period, $3.3 MM. 2014 - $3.24 MM, 2022 - $3.2 MM, 2015 - $2.4 MM. Impact to customers - Base PPAC for March of 3.9¢/ kWh, Supplemental PPAC of 8.2¢/ kWh, both are higher than previous years. Treasurer Dobbins reviewed additional graphs reflecting Incremental Energy purchased during the previous 14-months (January 2024 – February 2025) and monthly sales to customers. The graphs showed the impact electric heating has on incremental energy purchased and the significant increase in the number of residential customers using more energy in 2025 due to the cold weather. Nearly half of all residential customers used more than 1,500 kWh during December 2024 and January 2025, based on cold temperatures in February, similar totals are expected for February. The number of residential customers using more than 5,000 kWh during a month was also up compared to previous years. Over 700 residential customers used more than 5,000 kWh in January. This was up from less than 300 during the previous year.  Approved by the MEUB on 4/21/2025 Page 3 Due to increased incremental energy prices in 2025, the cost to serve these customers rose dramatically. In previous years the cost was only a few thousand dollars. In January 2025 the incremental energy purchased for the energy used above 5,000 totaled over $90,000 (921,000 kWh X $0.97 per kWh). C. Cash Flow: The Operating Fund decreased by $563,200. Decrease was more than projected. Receipts were lower than projected and expenditures were $366,500 more than anticipated. The Operating Fund balance at month end was $5.88 MM. February receipts were over $1.6 MM. Receipts are based on bills issued during January. These bills were higher than previous years. Several customers were unable to pay the total amount due, requiring staff to set up payment plans. More customers are applying for assistance from LI-HEAP to help pay these higher bills. Interest revenue remained higher than budgeted. Expenditures totaled over $2.19 MM for the month, previously noted higher than budgeted. RESOLUTION: The Massena Electric Utility Board hereby approves the bills as audited by Mr. Charles Raiti totaling $1,947,952.80. Moved by Charles Raiti – Seconded by Rene Hart- All in Favor 4) COMMITTEE REPORTS: by Andrew McMahon, Superintendent A. Personnel 1. Staff Update: Mr. McMahon reported to the board that we are advertising for two summer interns. They will be brought on when they are done with classes for the summer. B. Finance & Economic Development 1. Energy Efficiency Programs: Treasurer Dobbins reported that two residential audits were completed, and the reports showed some improvements that could be made by these customers. No new commercial audits were performed since the last meeting. Audits and work related to the attic insulation approved by the board in the fall continued. One new audit was scheduled and Energy Answers has commenced work on projects previously approved by the Finance Committee. Treasurer Dobbins expects these to be completed by the April meeting. 2. S&S Software Upgrade (Cloud servicing etc.): Treasurer Dobbins reported that Systems & Software continues to work on the financial management system, and address issues converting this portion of the software to v6. The issues have caused a delay in testing and the overall project timeline. Treasurer Dobbins indicated there was an upcoming call with S&S. After that call staff will have a better idea of when testing of the FMS package will start and when the potential transition date will be. C. Engineering & Energy 1. Cybersecurity: Treasurer Dobbins reported there were no incidents or changes since last month. 2. EAB extra work CR 40: Mr. McMahon and Mr. Gray gave an update on the progress on the funds set aside for CR40. Putney Tree Service has completed the takedown of the problem Ash trees on County Route 40. All that remains is to remove the wood from the occupied parcels for those customers that do not wish to keep the wood. The total cost of this project was  Approved by the MEUB on 4/21/2025 Page 4 approximately $30,000. Being that the Board passed a resolution not to exceed $50,000 for ash removal on Cr40, staff would like to use the remaining funds to target problem ash trees on State Highway 56. This is a mainline section that affects approximately five hundred customers. It is also worth noting that State Highway 56 is outside the bounds of the project area associated with the NYS DEC Ash tree removal grant. 3. NYSERDA Projects: Mr. McMahon updated the board on two NYSERDA projects. NYSERDA 5737 – This is technical assistance grant that we have been tentatively approved for. The work associated with this grant is to study where our system weaknesses are and what system upgrades to invest in as we become more electrified. NYSERDA 5986 – This is an infrastructure grant that we will be applying for. We are proposing a project that we are calling the 2305 line which would provide an additional distribution line to the southwest portion of our service territory. In doing so, we could reduce load on our two most heavily loaded circuits, 2301 (Louisville) and 2303 (off of SH420). The project would also take load off of circuit 61 (Homecroft) and 62 (north west side of village). There are multiple reliability benefits to the project as well as efficiency and power quality. 3. Federal Funding – Staff is still hoping for the PACES grant to support the AMI project although based on information coming from Washington that seems increasingly unlikely. 4. AMI Procurement Update: Mr. McMahon reported that we are still working on acceptable contract language for the AMI project. 5) LEGAL ISSUES: by Eric Gustafson, Attorney: Mr. Gustafson had no remarks for open session. 6) UNFINISHED BUSINESS: St. Lawrence Tour - tentative date May 9, 2025 7) NEW BUSINESS: Mr. McMahon reminded the board that the budget had two passenger vehicles in the budget for 2025 as both of them are approximately 6 years old and have around 90,000 miles each. Given the impending tariffs and the uncertainty of getting delivery in recent years we had our staff utilize the mini-bid process approved by the state to try and identify vehicles that met our needs. We were able to find vehicles on the lot that aligned with our needs and are consistent with the original budget. RESOLUTION: The Massena Electric Utility Board hereby approves the motion to purchase two passenger vehicles, not to exceed $110,000.00. Moved by Charles Raiti – Seconded by Mark Ryan- All in Favor 8) ARTICLES OF INTEREST: Finally, Mr. McMahon discussed the articles included in the Board packet. There was a discussion of the widely reported tariffs and the potential impact on the NYS energy market. Mr. McMahon advised the board that while there have been many conversations, nobody seems to be certain of what the impact will be.  Approved by the MEUB on 4/21/2025 Page 5 9) SCHEDULE OF EVENTS: Next regular meeting scheduled April 17, 2025 10) PUBLIC COMMENT: 11) EXECUTIVE SESSION: Motion to move into executive session at 2:10 pm. Moved by Richard Maginn – Seconded by Rene Hart - All in Favor Motion to move out of executive session at 3:05 pm. Moved by Mark Ryan – Seconded by Charles Raiti -All in Favor Motion to adjourn at 3:15 pm Moved by Charles Raiti – Seconded by Rene Hart - All in Favor  Approved by the MEUB on 4/21/2025 Page 6 Customer Impact Customer Minutes Top Quartile 12-Month Average 90000 80000 70000 60000 50000 40000 30000 20000 10000 0 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25  Approved by the MEUB on 4/21/2025 Page 7 Power Comparison Jan-2024 to Feb-2025 kW Supplemental NYPA Actual kW Purchased vs. Monthly Min & Max 55,000 50,000 2020- 2024 Max kW 45,000 40,000 35,000 2020 - 2024 Min kW 30,000 25,000 20,000 15,000 10,000 5,000 - Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 MWh Actual MWh Purchased vs. Monthly Min & Max Supplemental NYPA 30,000 27,500 2020 - 2024 Max MWh 25,000 22,500 20,000 2020 - 2024 Min MWh 17,500 15,000 12,500 10,000 7,500 5,000 2,500 - Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Total Power Costs vs. Monthly Min & Max $2,000,000 NYPA CES Transmission & ISO Supplemental $1,800,000 $1,600,000 2020 - 2024 Max $ $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 2020- 2024 Min $ $200,000 $- Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 % NYPA MWh 56% 59% 62% 70% 83% 75% 75% 76% 90% 88% 78% 56% 54% 53% % NYPA $ 17% 25% 29% 37% 39% 34% 33% 32% 41% 39% 36% 16% 10% 10% PPAC $0.015 $0.012 $0.009 $0.006 $0.010 $0.013 $0.011 $0.012 $0.009 $0.007 $0.010 $0.019 $0.033 $0.039 Supp PPAC $0.045 $0.020 $0.014 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.016 $0.052 $0.092 $0.082 CES $0.004 $0.004 $0.003 $0.004 $0.004 $0.004 $0.004 $0.004 $0.004 $0.004 $0.005 $0.004 $0.004 $0.004  Approved by the MEUB on 4/21/2025 Page 8 Comparison_2025-3-20 MWh Purchased NYPA MWh Supplemental MWh 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 - Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 MWh Sold Residential < 1500 Residential 1500 - 5000 Residential > 5000 Other Industrial 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 - Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25  Approved by the MEUB on 4/21/2025 Page 9 Comparison_2025-3-20 MWh Sold Residential < 1500 Residential 1500 - 5000 Residential > 5000 Other Industrial 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 - Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 # of Customers Residential < 1500 Residential 1500 - 5000 Residential > 5000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 - Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25  Approved by the MEUB on 4/21/2025 Page 10 Comparison_2025-3-20 MWh Purchased Supplemental MWh Supplemental $/MWh 15,000 $100 13,500 $90 12,000 $80 10,500 $70 9,000 $60 7,500 $50 6,000 $40 4,500 $30 3,000 $20 1,500 $10 - $- Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Power Cost to Serve Residential Usage > 1,500 kWh Residential 1500 - 5000 Residential > 5000 $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $- Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25  MASSENA ELECTRIC DEPARTMENT STATEMENT OF CASH FLOW PERIOD ENDING FEBRUARY 28, 2025 BUDGET vs. ACTUAL MONTH YEAR TO DATE over/(under) over/(under) ANNUAL ACTUAL BUDGET ACTUAL BUDGET BUDGET 1 OPERATING FUND 2 BEGINNING FUND BALANCE 6,447,717 (235,161) 7,329,378 7,329,378 3 4 CASH RECEIPTS: 5 RECEIPTS FROM CUSTOMERS 1,592,047 (180,553) 2,781,831 (556,069) 15,114,600 6 REIMBURSED WORK 11,600 7,800 11,600 4,000 45,000 7 RVRDA CONSULTING FEE 2,500 0 5,000 0 30,000 8 INTEREST REVENUES 22,556 4,456 44,970 8,770 217,200 9 TOTAL CASH RECEIPTS: 1,628,702 (168,298) 2,843,401 (543,299) 15,406,800 10 11 CASH EXPENDITURES: 12 SALARIES & WAGES 159,242 (2,758) 318,654 (5,346) 2,106,000 13 HEALTH INSURANCE 37,905 (10,995) 116,233 (30,467) 586,800 14 FICA & NYS RETIREMENT 11,754 554 316,008 (3,492) 442,700 15 Salaries & Employee Benefits 208,900 (13,200) 750,895 (39,305) 3,135,500 16 17 NYPA POWER 166,113 5,213 327,753 9,153 2,003,800 18 SUPPLEMENTAL POWER 1,162,425 566,425 1,804,678 701,578 3,576,200 19 ISO/TRANSMISSION 286,751 74,951 457,271 48,471 2,247,000 20 CES 90,082 3,782 171,605 7,305 793,200 21 Power & ISO 1,705,371 650,371 2,761,307 766,507 8,620,200 22 23 CONTRACT SERVICES 2,025 (16,275) 17,963 (18,637) 219,000 24 CONSULTING SERVICES 545 (10,855) 2,366 (20,434) 137,200 25 LEGAL SERVICES 5,500 (13,100) 20,124 (17,076) 223,600 26 FINANCIAL SERVICES 3,000 3,000 3,000 3,000 34,400 27 NYS SALES TAX 90,981 20,981 156,160 24,160 595,000 28 REAL ESTATE TAXES 119,710 6,410 264,641 19,241 628,700 29 POSTAGE 3,850 (1,350) 7,700 (2,700) 62,400 30 TELEPHONE 7,846 246 14,197 (1,003) 91,200 31 CONSUMER REFUNDS 1,036 (3,164) 6,066 (2,334) 50,000 32 INSURANCE 0 0 135,931 (13,269) 225,800 33 OTHER OPERATING EXP. 32,075 (10,425) 98,934 (6,066) 612,600 34 Paid to Suppliers & Vendors 266,567 (24,533) 727,083 (35,117) 2,879,900 35 36 MATERIALS & SUPPLIES 9,325 (40,875) 45,503 (54,897) 602,400 37 DEBT SERVICE 0 0 0 0 0 38 Contrib. to Depr Fund/Capital Exp. 1,730 (205,270) 3,465 (410,535) 2,484,500 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 0 0 50,000 42 Utility Investment & Other Activities 11,055 (246,145) 48,968 (465,432) 3,136,900 43 44 TOTAL CASH EXPENDITURES: 2,191,893 366,493 4,288,252 226,652 17,772,500 45 46 ENDING FUND BALANCE 5,884,527 5,884,527 (769,951) 4,963,678 47 48 CHANGE IN FUND BALANCE: (563,191) (1,444,851) (2,365,700) 49 Monthly Change YTD Change 50 DEPRECIATION FUND BALANCE: 1,262,312 2,908 6,140 51 LIABILITY & CASUALITY FUND BALANCE: 941,332 0 0 52 POST RETIRE. HLTH INS. FUND BALANCE: 1,704,043 5,509 11,632 53 ENERGY EFFICIENCY FUND BALANCE: 86,523 (2,936) (3,240)