Massena Electric Department

Approved by the MEUB 5/22/2025 Page 1 MASSENA ELECTRIC UTILITY BOARD MINUTES of Thursday, April 21, 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 - Excused Mark Ryan Patrick Facteau, Town Liaison Eric Gustafson, Attorney Kristy Baker, Town Liaison Public – David Grant 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 special meeting of February 14, 2025 as presented. Moved by Mark Ryan- Seconded by Richard Maginn - All in Favor RESOLUTION: The Massena Electric Utility Board hereby approves the minutes of the regular meeting of March 20, 2025 as presented. Moved by Rene Hart- 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 1,026 days. As of March 30th, 2025, MED has been 283 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. Owen McIntee with NEPPA was onsite to present a Qualified Electrical Personnel training for all members of the Line crew. This is an OSHA mandated training and one of the training requirements for Linemen that wish to respond to mutual aid. B. Customer Impact Chart: MED Customers experienced only 348 Customer Impact Minutes (CIM) throughout the month of March. Given the low amount of Customer Impact Minutes in March, the 12-month average has decreased slightly and is now at 20,063. Approved by the MEUB 5/22/2025 Page 2 C. Reliability: MED Crews responded to only nine calls throughout the month of March, with only three calls affecting our Customer Impact Minute total. Of the nine calls received one call affected no customers, five calls affected only one customer and three calls affected more than one customer. The largest customer impact was due to a failed cutout on North View Drive off of North Main Street. This call affected six customers for thirty-two minutes. The other two CIM events in March were due to tree issues and animal contacts. Both incidents involved a low customer impact. D. Work Schedule: With the recent mild weather, Crews are working to replace poles that have been tagged for replacement as a result of our wintertime inspection efforts. Crews completed an LED re-lamp of the street lights in the downtown corridor. This project allowed for a low-cost alternative to the high-pressure sodium fixtures as we wait for the final determination on street lighting as part of the Downtown Revitalizations 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 $4,422.70 as audited by Mr. Rene Hart. Moved by Rene Hart - Seconded by Charles Raiti - All in Favor B. Power Comparison Graph: Power Costs were over a $956,700 for the month. 2nd highest total for the month of March, 2014 only year higher. March Peak Demand was 41,000 kW. Lower than Peak from Jan & Feb, 5-year max was 43,300 from 2022. MWh purchased 21,285. Historically around 20,000 MWh purchased during March. Temperatures remained cold during March, resulting in MWh purchased being slightly higher. 5-year max was from 2022 (over 23,630 MWh). Supplemental Power costs were over $413,000 for March. 9,000 MWh of incremental energy purchased, 1,000 more than amount purchased in 2024. Zone D Average Energy rate was $46/MWh. Down significantly compared to Jan & Feb. Compared to 2024, $20/MWh higher. Transmission related expenditures totaled $293,000. Reflects transmission costs from February, lower than costs from Jan., over $100,000 more than 2024. Reflects constraints on the system and these costs were paid by all electric customers in the state. Impact to customers - Base PPAC for April of 2.3¢/ kWh, Supplemental PPAC of 3.9¢/ kWh, both are higher than previous years. C. Cash Flow: The Operating Fund increased by $290,200, small decrease was projected for March. The Operating Fund balance at month end was $6.17 MM. March receipts were over $2.4 MM. Customers continue to pay on their high bills from Jan & February. Receipts are expected to be higher than budgeted during April & May as well. HEAP benefits continue to come in, helping to pay down the high heating bills. This will start to slow in April. HEAP stopped accepting applications on April 7th and will only review those received by that date. Interest revenue remained higher than budgeted. Expenditures totaled over $2.13 MM for the month, which was higher than budgeted. RESOLUTION: The Massena Electric Utility Board hereby approves the bills as audited by Mr. Rene Hart totaling $1,412,236.94. Moved by Charles Raiti – Seconded by Mark Ryan- All in Favor Approved by the MEUB 5/22/2025 Page 3 4) COMMITTEE REPORTS: by Andrew McMahon, Superintendent A. Personnel 1. Staff Update: Treasurer Dobbins reported the front office continued to field calls regarding bills and staff have set up levelized payment plans with many of these callers. The Sr. Clerks handle most of these calls and continue to work well together. 2. Summer Interns: Mr. McMahon updated the board on hiring of summer interns. Mr. McMahon will be making calls to interested applicants in the coming weeks. Interns will have to pass drug and alcohol testing before commencing work with MED. B. Finance & Economic Development 1. Energy Efficiency Programs: No energy efficiency credits have been submitted since the last meeting. Treasurer Dobbins reported that one commercial credit request was expected before the next meeting. A couple of residential audits were performed in the last few weeks and some improvements were identified. Treasurer Dobbins also indicated that work was completed as part of the attic insulation program. The finance committee authorized the improvements prior to them being implemented. At the next meeting Treasurer Dobbins will have before and after pictures for the board to review. 2. S&S Software Upgrade (Cloud servicing etc.): The project continues to move forward. S&S is still working on parts of the Financial Management System that are not ready. Treasurer Dobbins noted that finding these issues now is better than after the transition to the new version, when time to fix the issues would be delaying employees trying to perform daily functions. 3. Transmission Congestion Contracts: Mr. McMahon reminded the board that these Transmission Congestion Contracts can be an expense or revenue source to the Department. In recent years it has been an obvious conclusion that we would sign a contract acknowledging the offer but decline any congestion contracts. By doing so, we continue to leave the option of purchasing the congestion contracts in the future. and we have received revenue due to the fact that there has been counter congestion between Niagara and Massena. This revenue was consistently strong from 2020 through 2024. Thus far in 2025 the counter congestion has tailed off. Mr. McMahon advised the board that we have until mid July to sign and make a decision. However, he wanted to start the conversation sooner than later, since it is not as obvious a decision as it has been in the past. 4. AEGIS Risk Assessment: Staff discussed the recent risk assessment provided by AEGIS, the largest underwriter of the Departments casualty and property insurance coverage. This assessment was offered through PURMA and at no charge to the Department. During the assessment staff reviewed the practices and procedures followed by operations and the front office. This included Transmission and Distribution System Inspections (transformers, poles, substations, underground infrastructure…), vegetation management, contractor/public safety awareness and call handling. Field observations were also performed. At the conclusion of the assessment, the AEGIS representative presented some of their findings to staff, as well as Mr. Shaw and Mr. Raiti. Nothing serious was identified during the assessment and several of the suggested improvements centered around improving how documentation is stored. Most of it is paper documentation that could be digitized. Deputy Superintendent Gray, noted that the assessment was helpful and provided some guidance on ways to improve on what we are already doing. C. Engineering & Energy 1. Cybersecurity: Treasurer Dobbins noted that there was nothing new to report. Approved by the MEUB 5/22/2025 Page 4 2. EAB extra work CR 40: To date Putney Tree Service has completed the takedown of the problem Ash trees on County Route 40 and State Highway 56, at a cost of $34,500. Being that we have not spent the entire $50,000 that was ear marked for County Route 40, MED staff is requesting that we continue with Ash tree takedowns in areas of the district that are outside the bounds of the Ash tree grant we received from the New York State DEC. This will allow for MED to continue the ash tree takedown initiative while we await the kick-off of the DEC grant. RESOLUTION: The Massena Electric Utility Board hereby approves the motion to modify previous approval of $50,000 to remove Ash Trees on County Route 40, to include any location up to $50,000.00. Moved by Charles Raiti – Seconded by Mark Ryan – All in Favor 3. DEC Ash Grant: Mr. McMahon and Mr. Dobbins participated in a conference call with the DEC to discuss the next steps on this grant program for disadvantaged communities. We expect to receive additional applications to fill out from DEC that will have to be completed by MED and then receive final approval from the appropriate parties within DEC. DEC staff estimate that it will be another one or two months before final approval is received by Massena Electric. In the meantime, MED will focus on removing ash trees outside of the grant area unless it is absolutely necessary to remove ash trees in the portion of the service territory covered by the grant. 4. NYSERDA Projects: NYSERDA 5737 – Technical assistance: This project has been officially approved by NYSERDA, and the contracts for this PON have been signed. This grant will be a comprehensive look at our distribution system to identify the best projects to do to prepare for the future as customers increasingly electrify. NYSERDA 5986 – Infrastructure grant: An application was submitted by the Department that would relieve loads from multiple circuits and also relieve load from the low-voltage distribution system in the Village by adding one distribution line. The new line will run Southwest from Grasse River substation. This is a $1.3 million project where the grant would be approximately $1 million. NYSERDA is now reviewing the submitted applications and will be providing updates on grant approvals in the coming months. 5. Federal Funding: Mr. McMahon relayed to the board that the only federal funding that we are waiting to hear on is the PACES grant. Mr. McMahon suggested that for a variety of reasons, he is doubtful that we will get this grant and support of the AMI project, despite the fact that we received initial approval. 6. AMI Procurement Update: Superintendent McMahon reported that the agreement with the preferred vendor, EATON, was ready for final approval from the Board. After serval exchanges with EATON subsequent to last month’s meeting, EATON provided updated language that was requested by staff and Mr. Gustafson. Most importantly, EATON agreed to a 15-year agreement instead of a shorter term previously proposed. RESOLUTION: The Massena Electric Utility Board hereby authorizes Superintendent McMahon to sign the updated 15-year EATON agreement to implement an AMI system at an amount not to exceed the amount previously approved by the Massena Electric Utility Board. Moved by Charles Raiti – Seconded by Rene Hart – All in Favor 7. DTT Relaying: Mr. McMahon reported that he and Mr. Gray along with Mike Barrett of PLM Approved by the MEUB 5/22/2025 Page 5 continue to have calls and exchange emails with NYPA on this relaying issue. Mr. McMahon reminded the board that this project is precipitated by two factors. The first consideration is that the relays are quite old and likely need to be replaced. The greater problem is that the copper communications from Verizon is increasingly unreliable and the monthly fees that Verizon is charging are skyrocketing. 8. Power Supply: Mr. McMahon reported that he has been reaching out to energy suppliers to try to arrange contracts for next years' winter or for multiple winters. Mr. McMahon will stay in touch with the board on potential pricing. We have done this in the past and taking market prices has usually been more advantageous than locking in a fixed price in advance. Obviously, this past year, having a locked in price would have benefited the Department’s customers Finally, Mr. McMahon advised the board that due to unexpected events and other anomalies, NYISO billings have been higher and additional charges are expected. Specifically, marginal losses are much higher than they have been in recent years. These charges are related to our firm Hydro scheduled out of Niagara, and the higher charges are not unique to Massena. Several other preference customers have seen an increase in these charges. Massena, along with others, have requested more information from NYPA regarding these charges to get better clarity in how these charges are determined and what caused the increase this winter. There have also been a series of ice events which have curtailed generation at the Niagara power plant. These curtailments caused NYPA to buy power in the real time market to meet our needs at a higher cost than our normal preference power rates. Over the past 15 years we are aware of this happening only two or three times. This year, it has happened five times since the end of January due to what appears to be a breach in the ice boom near Buffalo. Treasurer Dobbins reported that the last time this occurred it was over 5 months after the event that the final bill related to the curtailment was received. Since there were multiple events this year, it is expected to be at least that long before the full impact is known. Superintendent McMahon noted staff will be working with NYPA on this issue. 5) LEGAL ISSUES: by Eric Gustafson, Attorney: Mr. Gustafson had no remarks for open session. 6) UNFINISHED BUSINESS: St. Lawrence Tour - May 9, 2025 7) NEW BUSINESS: 8) ARTICLES OF INTEREST: 9) SCHEDULE OF EVENTS: Next regular meeting scheduled May 22, 2025 10) PUBLIC COMMENT: 11) EXECUTIVE SESSION: Motion to adjourn at 2:10 pm Moved by Rene Hart – Seconded by Mark Ryan - All in Favor Approved by the MEUB 5/22/2025 Page 6 Customer Impact Customer Minutes Top Quartile 12-Month Average 90000 80000 70000 60000 50000 40000 30000 20000 10000 0 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25  Approved by the MEUB 5/22/2025 Power Comparison Feb-2024 to Mar-2025 Page 7 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 - 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 Mar-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 - 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 Mar-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 $- 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 Mar-25 % NYPA MWh 59% 62% 70% 83% 75% 75% 76% 90% 88% 78% 56% 54% 53% 58% % NYPA $ 25% 29% 37% 39% 34% 33% 32% 41% 39% 36% 16% 10% 10% 18% PPAC $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 $0.023 Supp PPAC $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 $0.039 CES $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 $0.004  Approved by the MEUB 5/22/2025 Page 8 MASSENA ELECTRIC DEPARTMENT STATEMENT OF CASH FLOW PERIOD ENDING MARCH 31, 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 5,884,527 (769,951) 7,329,378 7,329,378 3 4 CASH RECEIPTS: 5 RECEIPTS FROM CUSTOMERS 2,380,026 631,126 5,161,857 75,057 15,114,600 6 REIMBURSED WORK 21,679 17,879 33,279 21,879 45,000 7 RVRDA CONSULTING FEE 2,500 0 7,500 0 30,000 8 INTEREST REVENUES 15,918 (2,182) 60,888 6,588 217,200 9 TOTAL CASH RECEIPTS: 2,420,122 646,822 5,263,523 103,523 15,406,800 10 11 CASH EXPENDITURES: 12 SALARIES & WAGES 192,849 (9,651) 511,503 (14,997) 2,106,000 13 HEALTH INSURANCE 38,086 (10,814) 154,319 (41,281) 586,800 14 FICA & NYS RETIREMENT 14,252 252 330,260 (3,240) 442,700 15 Salaries & Employee Benefits 245,187 (20,213) 996,082 (59,518) 3,135,500 16 17 NYPA POWER 157,417 2,817 485,170 11,970 2,003,800 18 SUPPLEMENTAL POWER 967,894 408,894 2,772,573 1,110,473 3,576,200 19 ISO/TRANSMISSION 354,900 149,900 812,170 198,370 2,247,000 20 CES 80,810 1,410 252,415 8,715 793,200 21 Power & ISO 1,561,021 563,021 4,322,328 1,329,528 8,620,200 22 23 CONTRACT SERVICES 33,259 14,959 51,223 (3,677) 219,000 24 CONSULTING SERVICES 1,068 (10,332) 3,434 (30,766) 137,200 25 LEGAL SERVICES 33,567 14,967 53,690 (2,110) 223,600 26 FINANCIAL SERVICES 5,400 (100) 8,400 2,900 34,400 27 NYS SALES TAX 95,300 26,300 251,460 50,460 595,000 28 REAL ESTATE TAXES 0 0 264,641 19,241 628,700 29 POSTAGE 4,696 (504) 12,396 (3,204) 62,400 30 TELEPHONE 7,666 66 21,863 (937) 91,200 31 CONSUMER REFUNDS 2,977 (1,223) 9,044 (3,556) 50,000 32 INSURANCE 71,562 (3,438) 207,493 (16,707) 225,800 33 OTHER OPERATING EXP. 31,646 (10,854) 130,580 (16,920) 612,600 34 Paid to Suppliers & Vendors 287,140 29,840 1,014,223 (5,277) 2,879,900 35 36 MATERIALS & SUPPLIES 34,670 (15,530) 80,173 (70,427) 602,400 37 DEBT SERVICE 0 0 0 0 0 38 Contrib. to Depr Fund/Capital Exp. 1,890 (205,110) 5,355 (615,645) 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 36,560 (220,640) 85,528 (686,072) 3,136,900 43 44 TOTAL CASH EXPENDITURES: 2,129,909 352,009 6,418,161 578,661 17,772,500 45 46 ENDING FUND BALANCE 6,174,740 6,174,740 (475,137) 4,963,678 47 48 CHANGE IN FUND BALANCE: 290,214 (1,154,637) (2,365,700) 49 Monthly Change YTD Change 50 DEPRECIATION FUND BALANCE: 1,158,807 (103,504) (97,364) 51 LIABILITY & CASUALITY FUND BALANCE: 941,332 0 0 52 POST RETIRE. HLTH INS. FUND BALANCE: 1,710,117 6,074 17,706 53 ENERGY EFFICIENCY FUND BALANCE: 86,111 (412) (3,651)