Massena Electric Department

Approved by the MEUB 06/26/2025 Page 1 MASSENA ELECTRIC UTILITY BOARD MINUTES of Thursday, May 22, 2025 Town of Massena Electric Department – 71 East Hatfield Street Present: James Shaw (1:15 pm.) Andrew McMahon, Superintendent Richard Maginn Jeffrey Dobbins, Treasurer Rene Hart Matt Gray, Deputy Superintendent - Excused Charles Raiti Margo Rochefort, Deputy Treasurer Mark Ryan Patrick Facteau, Town Liaison Eric Gustafson, Attorney Kristy Baker, Town Liaison Board member Hart opened the meeting at 1:04 pm 1) APPROVAL OF MINUTES: RESOLUTION: The Massena Electric Utility Board hereby approves the minutes of the regular meeting of April 21, 2025 as presented. Moved by Richard Maginn- Seconded by Charles Raiti - All in Favor RESOLUTION: The Massena Electric Utility Board hereby approves the minutes of the special meeting of April 30, 2025 as presented. Moved by Charles Raiti- Seconded by Richard Maginn - All in Favor 2) OPERATIONS UPDATE: by, Mr. McMahon presented Mr. Gray’s report since he is in training. A. Safety: MED has not had a lost time injury since June 8th, 2022. The number of consecutive days without a lost work case is 1056. We have also been 313 days without a recordable incident. MED has continued our OSHA required safety training with NEPPA. Owen McIntee is now our trainer. Mr. McIntee is the retired Superintendent from Spencerport. The most recent training was pole top and bucket rescue. This is an OSHA required training and it is required for linemen who wish to volunteer for Mutual Aid. Also, Mr. Gray arranged for AED/CPR training for all MED employees. B. Customer Impact Chart: MED had less than 16,000 Customer Impact Minutes for the month. The majority of the impact minutes were related to a goose contact on SH 37. Overall, the 12- month rolling average is still around 21,000 minutes which is comfortably into the top quartile. C. Reliability: The goose impact was one of 13 calls, but only 4 of the calls impacted multiple customers. The incident on SH 37 impacted 375 customers for 29 minutes. Approved by the MEUB 06/26/2025 Page 2 D. Work Schedule: Crews are working to replace poles that were identified over the winter. Operations staff also replaced a vacuum interrupter on breaker 3301 with Northline Utilities. This is significant because it is the first time we have used the services of Northline after using Black and MacDonald for multiple years. It is notable that, while the ownership has changed, the technicians and other staff who come on-site is the same. 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 $23,067.73 as audited by Mr. Rene Hart. Moved by Richard Maginn - Seconded by Mark Ryan - All in Favor Treasurer Dobbins reviewed a series of graphs (attached) related to Write-offs and Accounts Receivables. May write-offs were significantly higher than in previous months. He noted even though they were high for the month, it did not reflect the highest total for a single month. In 2022, write-offs exceed $23,000 on a couple of occasions. The graphs showed net write-offs, write-offs minus payments on previously written accounts, were $30,000 through May. This is expected to increase over the next few months. Now that the winter heating season has finished, summer collection procedures have commenced, resulting in additional terminations for non-payment. The Department also experiences several transfers each spring. Many of these are expected to result in a write-off. Presently for each dollar in sales only $.0035 ends up being written off by the Department. The goal each year is to remain below this threshold. Treasurer Dobbins noted that attaining that goal was unlikely due to the high bills this winter. He projected the total to be near $.005 per dollar in sales. B. Power Comparison Graph: Power Costs were over a $618,550 for the month. Peak Demand was 32,550 kW. Very similar to previous years. Set on a cold morning early in the month. Since Oct 2024, 5th month the peak was set in the morning. Historically this only happened periodically. Transition to LED street and private area lights, part of the reason for the switch. MWh purchased total 16,100. Lower end of what is expected for the month. In 2024 MWh purchased totaled 17,400 and the 5-year max of 18,400 was set in 2022. Supplemental Power costs were over $161,200 for April, $40,000 more than April 2024. 4,340 MWh of incremental energy purchased. 800 MWh less than amount purchased in 2024. Zone D Average was $37.15/MWh, down significantly compared to previous months in 2025. In April 2024 Zone D Price was $23.50, over $13.50 less per MWh. Transmission related expenditures totaled $237,000. Reflects Transmission costs from March. Lower than costs from Jan & Feb. Over $80,000 more than 2024. Continued constraints on the system have resulted in higher Transmission related expenditures for all electric customers in the state. Impact to customers - May PPAC 1.6¢ / kWh, only single PPAC billed in May. Total is roughly 1.0¢ / kWh higher than May 2024 due to higher supplemental and transmission expenses. C. Cash Flow: The Operating Fund increased by $767,165, Increase was significantly higher than projected for April. The Operating Fund at month end was $6.9 MM. April receipts were over $2.1 MM. Customers continue to pay on their bills from Jan – Mar and April billings were higher as well. Receipts are expected to be higher than budgeted through the summer as customers get caught up. HEAP benefits continue to come in, helping to pay down the high heating bills. Interest Revenues were lower Approved by the MEUB 06/26/2025 Page 3 than budgeted for the month. Interest revenue is expected to increase as money is moved into NYCLASS or other investments. Expenditures totaled over $1.34 MM for the month, which is lower than budgeted. RESOLUTION: The Massena Electric Utility Board hereby approves the bills as audited by Mr. Rene Hart totaling $893,169.34. Moved by Rene Hart – Seconded by Charles Raiti- All in Favor 4) COMMITTEE REPORTS: by Andrew McMahon, Superintendent A. Personnel 1. Staff Update: There were no significant changes among staff. 2. Summer Interns: Both of the interns will be starting in mid-June and concluding in mid- September. 3. Training – Matt Gray: Matt initiated a course in overhead line construction (Overhead Distribution and Design Principles). The course is done on-line through the APPA and involves approximately 40 hours in the spring (that he just completed) and another 40 hours in the fall. Mr. McMahon explained that this training is something that he and Mr. Gray had talked about in the past, but after the PURMA/AEGIS Audit this past spring, where this issue was highlighted, Mr. McMahon and Mr. Gray agreed that now was an appropriate time to get the training done. B. Finance & Economic Development 1. Energy Efficiency Programs: Treasurer Dobbins noted that a couple of Residential Audits were performed since the meeting. Besides these requests, there were no other items of note related to Energy Efficiency. 2. S&S Software Upgrade (Cloud servicing etc.): Staff continue to wait for corrections of errors found in the financial management system. The errors have been found by S&S staff performing QA prior to providing the test environment for staff. As much as the delay is unfortunate, getting these errors addressed now should reduce the errors found by staff during testing. 3. Transmission Congestion Contracts: Mr. McMahon pointed out that TCCs will need to be acted upon in June. C. Engineering & Energy 1. Cybersecurity: Treasurer Dobbins reported that Adirondack Techs is working on some system upgrades in preparation for the AMI project. This includes cleaning up some of the network drops in the IT rooms and potential replacing a couple of older switches. 2. EAB extra work CR 40: Mr. Gray and Mr. Putney continued to target ash trees that need to come down. We have spent about $41,000 of the $50,000 approved for this task. 3. DEC Ash Grant: We are still awaiting word from NYS on moving forward with this $231k grant. Approved by the MEUB 06/26/2025 Page 4 4. NYSERDA Projects: NYSERDA 5737 - Matt is moving forward with PSE and NYSERDA on this planning grant. The conversations have been fruitful as we have looked at GIS opportunities for improvement. NYSERDA 5986 - Infrastructure Grant. This is a $1.3 million grant that we are still waiting to hear from the state on. 5. Federal Funding: Mr. McMahon relayed to the board that the federal funding that we are waiting to hear on is the PACES grant, which we are unlikely to receive. 6. AMI Procurement Update: Mr. McMahon reminded the board that we are working with PSE and our vendors in hopes of getting phase one of this project completed in 2025. All contracts have been signed with Eaton and Mr. Gray has released some of the required material for shipment. We are hoping for data backhaul equipment to arrive by July. We have also entered a contract with Spectrum to provide internet connection at each of the 15 collector sites. This connection is integral to backhaul of data. Mr. Gray has also released the first group of meters for this project. We are hoping these will arrive by early fall so that we can complete Phase 1 before the winter and we will have time to evaluate over the winter. 7. DTT Relaying: Mr. McMahon and Mr. Gray continued to work with NYPA and our consultant Mike Barrett in hopes of getting new relaying and a Fiber path created to improve the overall operation of this protection system. 8. Power Supply: Mr. McMahon will continue to work with the engineering committee to evaluate our power supply and TCC options for 2026. If possible, Mr. McMahon will set up an informational meeting for the full board to take a more detailed look at our options for both issues. In both cases, it is something that requires an extended review. As noted previously, the TCC issue will need to be acted upon in June so that it can be submitted by July. 5) LEGAL ISSUES: by Eric Gustafson, Attorney: Mr. Gustafson had no remarks for open session. 6) UNFINISHED BUSINESS: St. Lawrence Tour - NYPA has moved the St. Lawrence tour again. We are waiting for a new date. 7) NEW BUSINESS: Mr. McMahon stated there were two surplus vehicles sold. The board elected to accept the high bid in each case. RESOLUTION: The Massena Electric Utility Board hereby accepts the highest bid for 2019 Silverado Crew Cab in the amount of $18,100 and the highest bid for the 2019 2500 service truck in the amount of $16,001. Moved by Richard Maginn – Seconded by Mark Ryan- All in Favor Approved by the MEUB 06/26/2025 Page 5 Mr. McMahon presented the RVRDA/MED contract for the next three years at $30,000 per year. Mr. Gustafson pointed out that this was the same contract that we signed three years ago. Mr. Shaw recommended we accept the contract as presented. 8) ARTICLES OF INTEREST: Mr. McMahon discussed each of the articles that was included in the board packet and made special note of the number of clean energy projects that were being canceled. 9) SCHEDULE OF EVENTS: Next regular meeting scheduled June 19, 2025 10) PUBLIC COMMENT: 11) EXECUTIVE SESSION: Motion to move into executive session at 1:58 pm. Moved by Mark Ryan – Seconded by Richard Maginn - All in Favor Motion to move out of executive session at 2:22 pm. Moved by Charles Raiti – Seconded by Richard Maginn -All in Favor Motion to adjourn at 2:22 pm Moved by Mark Ryan – Seconded by Richard Maginn - All in Favor Approved by the MEUB 06/26/2025 Page 6 Customer Impact Customer Minutes Top Quartile 12-Month Average 90000 80000 70000 60000 50000 40000 30000 20000 10000 0 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25  Approved by the MEUB 06/26/2025 Power Comparison Mar-2024 to Apr-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 - 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 Apr-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 17,500 2020 - 2024 Min MWh 15,000 12,500 10,000 7,500 5,000 2,500 - 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 Apr-25 Total Power Costs vs. Monthly Min & Max $2,000,000 NYPA CES Transmission & ISO Supplemental 2020 - 2024 Max $ $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 2020- 2024 Min $ $200,000 $- 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 Apr-25 % NYPA MWh 62% 70% 83% 75% 75% 76% 90% 88% 78% 56% 54% 53% 58% 73% % NYPA $ 29% 37% 39% 34% 33% 32% 41% 39% 36% 16% 10% 10% 18% 27% PPAC $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 $0.016 Supp PPAC $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 $0.000 CES $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 $0.003 Approved by the MEUB 06/26/2025 Page 8 MASSENA ELECTRIC DEPARTMENT STATEMENT OF CASH FLOW PERIOD ENDING APRIL 30, 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 6,174,740 (475,138) 7,329,378 7,329,378 3 4 CASH RECEIPTS: 5 RECEIPTS FROM CUSTOMERS 1,901,664 331,264 7,063,521 406,321 15,114,600 6 REIMBURSED WORK 191,274 187,474 224,553 209,353 45,000 7 RVRDA CONSULTING FEE 7,500 5,000 15,000 5,000 30,000 8 INTEREST REVENUES 9,841 (8,259) 70,729 (1,671) 217,200 9 TOTAL CASH RECEIPTS: 2,110,279 515,479 7,373,802 619,002 15,406,800 10 11 CASH EXPENDITURES: 12 SALARIES & WAGES 156,983 (5,017) 668,487 (20,013) 2,106,000 13 HEALTH INSURANCE 37,726 (11,174) 192,044 (52,456) 586,800 14 FICA & NYS RETIREMENT 11,581 381 341,841 (2,859) 442,700 15 Salaries & Employee Benefits 206,290 (15,810) 1,202,372 (75,328) 3,135,500 16 17 NYPA POWER 156,585 (615) 641,755 11,355 2,003,800 18 SUPPLEMENTAL POWER 413,052 (11,649) 3,185,624 1,098,824 3,576,200 19 ISO/TRANSMISSION 293,014 98,814 1,105,184 297,184 2,247,000 20 CES 73,244 (1,956) 325,659 6,759 793,200 21 Power & ISO 935,894 84,594 5,258,222 1,414,122 8,620,200 22 23 CONTRACT SERVICES 11,812 (6,488) 63,035 (10,165) 219,000 24 CONSULTING SERVICES 1,236 (10,164) 4,670 (40,930) 137,200 25 LEGAL SERVICES 15,984 (2,616) 69,674 (4,726) 223,600 26 FINANCIAL SERVICES 19,500 (500) 27,900 2,400 34,400 27 NYS SALES TAX 62,854 2,854 314,313 53,313 595,000 28 REAL ESTATE TAXES 0 0 264,641 19,241 628,700 29 POSTAGE 4,561 (640) 16,956 (3,844) 62,400 30 TELEPHONE 8,037 437 29,900 (500) 91,200 31 CONSUMER REFUNDS 13,897 9,697 22,941 6,141 50,000 32 INSURANCE 469 469 207,962 (16,238) 225,800 33 OTHER OPERATING EXP. 43,398 898 173,978 (16,022) 612,600 34 Paid to Suppliers & Vendors 181,748 (6,052) 1,195,971 (11,329) 2,879,900 35 36 MATERIALS & SUPPLIES 17,763 (32,437) 97,936 (102,864) 602,400 37 DEBT SERVICE 0 0 0 0 0 38 Contrib. to Depr Fund/Capital Exp. 1,419 (205,581) 6,774 (821,226) 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 19,182 (238,018) 104,710 (924,090) 3,136,900 43 44 TOTAL CASH EXPENDITURES: 1,343,115 (175,285) 7,761,275 403,375 17,772,500 45 46 ENDING FUND BALANCE 6,941,905 6,941,905 215,627 4,963,678 47 48 CHANGE IN FUND BALANCE: 767,165 (387,473) (2,365,700) 49 Monthly Change YTD Change 50 DEPRECIATION FUND BALANCE: 1,161,904 3,096 (94,268) 51 LIABILITY & CASUALITY FUND BALANCE: 941,332 0 0 52 POST RETIRE. HLTH INS. FUND BALANCE: 1,715,982 5,865 23,571 53 ENERGY EFFICIENCY FUND BALANCE: 121,933 35,822 32,170 Approved by the MEUB 06/26/2025 Page 9 As of 5/20/2025 Uncollectible / Write-off Summary $110,000 $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 2021 2022 2023 2024 2025 Gross Write-offs Net Write-offs Uncollectible / Write-off per Sales $ $0.0055 $0.0050 $0.0045 $0.0040 $0.0035 $0.0030 $0.0025 $0.0020 $0.0015 $0.0010 $0.0005 $- 2021 2022 2023 2024 2025 MED Write-offs APPA Average  As of April 30, 2025 Approved by the MEUB 06/26/2025 Page 10 # of Customers with Balances > 30 Days 30 Days Current-Customers 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr 2021 2022 2023 2024 2025 Month End Accounts Receivable $2,500,000 $2,250,000 $2,000,000 $1,750,000 $1,500,000 $1,250,000 $1,000,000 $750,000 $500,000 $250,000 $- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr 2021 2022 2023 2024 2025