Massena Electric Department

Approved by the MEUB 7/17/2025 Page |1 MASSENA ELECTRIC UTILITY BOARD MINUTES of Thursday, June 26, 2025 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 Patrick Facteau, Town Liaison Eric Gustafson, Attorney Kristy Baker, Town Liaison – Excused Public – David Grant Summer Interns – Aaron Binion Christine Grant Board member Hart opened the meeting at 9:59 am. 1) APPROVAL OF MINUTES: RESOLUTION: The Massena Electric Utility Board hereby approves the minutes of the regular meeting of May 22, 2025 as presented. Moved by Mark Ryan- Seconded by Charles Raiti - All in Favor RESOLUTION: The Massena Electric Utility Board hereby approves the minutes of the special meeting of June 3, 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 1,087 days. As of May 31st, 2025, MED has been 344 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. All MED staff attended a Defensive Driving Course presented by a representative of the National Safety Council. B. Customer Impact Chart: MED Customers experienced only 297 Customer Impact Minutes (CIM) throughout the month of May. The largest CIM contributor was due to a goose contact at the Wal-Mart site. With the low amount of CIM in May, the 12-month average remains relatively unchanged and is now at 21,205.  Approved by the MEUB 7/17/2025 Page |2 C. Reliability: MED Crews responded to nine calls throughout the month of May, with only two calls affecting our Customer Impact Minute total. Of the calls received, two calls affected no customers, six calls affected only one customer and two calls affected more than one customer. The largest customer impact was due to a goose contact at the Wal-Mart site that affected both Wal-Mart and Home Depot for two hours and ten minutes. The second CIM contributor was due to a squirrel contact at a single residence on St Hwy 131 that resulted in a thirty-seven-minute outage. The remainder of the calls in May were relatively routine in nature. D. Work Schedule: Crews are working to relocate MED infrastructure on the East side of NYPA’s Power Canal project. This project will allow for better access to the site and create more vertical clearance in the work zone. Crews will begin phase 2 of the NYPA Fregoe Road relocation project in the coming weeks. Preparations are being made with affected landowners for site access and clearing. 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 $6,977.55 as audited by Mr. Rene Hart. Moved by Charles Raiti - Seconded by Richard Maginn - All in Favor B. Power Comparison Graph: Power Costs were over $413,920 for the month. Peak Demand was 23,860 kW. Very low compared to previous years. 2008 was last time under 24,000 for May. Peak was set at 11;00 on May 9th. MWh purchased totaled 13,415, lower end of what is expected for the month. Supplemental Power costs were only $2,300 for the month. 70 MWh of incremental energy purchased, 2,400 MWh less than amount purchased in 2024. Zone D Average was $33.40/MWh. Transmission related expenditures totaled $211,900. Impact to customers - June PPAC 0.7¢ / kWh, only. C. Cash Flow: The Operating Fund increased by $452,757. Increase was higher than projected for May. The Operating Fund at month end was $7.4 MM. May receipts were over $1.4 MM. Customers continue to pay on their winter heating bills. Interest Revenues were higher than budgeted for the month. Interest rates remain above 4%. Sold treasuries in May. Interest Revenue for the month includes interest and discounts earned. Expenditures totaled roughly $975,000 for the month, which was $319,000 lower than budgeted. RESOLUTION: The Massena Electric Utility Board hereby approves the bills as audited by Mr. Rene Hart totaling $756,081.38. Moved by Charles Raiti – Seconded by Mark Ryan- All in Favor 4) COMMITTEE REPORTS: by Andrew McMahon, Superintendent A. Personnel 1. Staff Update: Mr. McMahon told the board that one employee has been hospitalized with an illness but will hopefully be back at work next week. Mr. McMahon then shared that another Approved by the MEUB 7/17/2025 Page |3 employee will be having surgery and will miss a number of weeks. Mr. McMahon then asked Mr. Dobbins to discuss our plans to respond to this multi-week opening. Treasurer Dobbins reported that an advertisement was run looking for a temporary office staff member to assist front operations during an upcoming leave of absence in the front office. The personnel committee was made aware of the leave of absence previously and prior to running the advertisement. A few responses were received for the opening and two individuals were identified as possible candidates to fill the temporary position. Treasurer Dobbins noted the employee would work for up to 8 weeks on a part-time basis. RESOLUTION: The Massena Electric Utility Board authorizes the Treasurer to hire one part-time, temporary, office worker for up to 8 weeks. Moved by Charles Raiti – Seconded by Mark Ryan- All in Favor 2. Summer Interns: Mr. McMahon introduced Christine Grant and Aaron Binion who are our two summer interns. Mr. McMahon stated that their primary responsibility would be our compliance with stray voltage testing requirements. Beyond that, they would be working on other longer-term projects that would bring value to MED and provide the interns with insight into the utility industry. Ms. Grant will be entering her sophomore year at Northwestern University and Mr. Binion will be a junior at Union College. 3. Training: Mr. Gray attended the online training seminar on Overhead Distribution Principles and Applications presented by APPA. This was part one of a two-part training that covers such topics as National Electric Safety Code (NESC), overhead design theory, and applying the NESC to real-world scenarios. One of the more beneficial aspects of the training was the sharing of first- hand experiences by the instructors and other members of the class. Part two involving eight 4- hour sessions will be held in late August. Mr. McMahon reminded the board that this type of training had been discussed periodically throughout the years for Mr. Gray to supplement his experience. However, during the AEGIS Audit our auditor noted the fact that Mr. Gray didn't have formal training in this area and it was a potential risk in the auditor’s opinion. When Mr. McMahon and Mr. Gray saw this course offered immediately after the audit we determined that Mr. Gray should take this training. B. Finance & Economic Development 1. Energy Efficiency Programs: Treasurer Dobbins reported that a couple of audits were completed since the last meeting and audit reports were expected. He also noted that no credit requests were received. 2. S&S Software Upgrade (Cloud servicing etc.): The upgrade to the new Financial Management System and Customer Information System has started to move forward again. Treasurer Dobbins noted that Systems & Software had completed additional testing of the FMS portion and testing by staff would start up again in a next couple of weeks. RESOLUTION: The Massena Electric Utility Board authorizes Massena Electric staff to contract with Systems & Software to integrate enQuesta, Massena Electric’s billing system, with the new AMI system at a cost not to exceed $55,000. Moved by Charles Raiti - Seconded by Richard Maginn - All in Favor Approved by the MEUB 7/17/2025 Page |4 3. Transmission Congestion Contracts: Mr. McMahon highlighted a graph that Mr. Dobbins had put together for the finance committee that showed the varying revenues we have received from congestion in recent years. These congestion revenues are related to the Department’s hydro allocation from NYPA’s Niagara Power Project. The revenues have become more volatile in recent years and have declined significantly. Mr. McMahon explained that revenue from congestion started to drop off when a small transmission project in Western New York was completed. Mr. McMahon stated that future revenues are hard to predict, but the completion of NYPA’s Smart path project should further eliminate congestion and drive this revenue towards zero. Mr. McMahon and Mr. Dobbins explained that congestion is a price signal that there are deficiencies in the grid. As Smart Grid and other transmission projects are completed it is expected that congestion should diminish. Both Mr. McMahon and Mr. Dobbins recommended that Massena Electric continue with the practice of not purchasing these contracts for a one-year period. By electing to decline for one-year, Massena Electric will have the options to purchase these in 2026. RESOLUTION: The Massena Electric Utility Board hereby authorizes Mr. McMahon to sign the TCC documents with NYISO, without asking for any contacts. Moved by Charles Raiti – Seconded by Mark Ryan- All in Favor C. Engineering & Energy 1. Cybersecurity: Treasurer Dobbins noted that there was nothing new to report. 2. EAB extra work CR 40: Mr. McMahon and Mr. Gray discussed the progress that has been made in various areas. The board has initially approved 50k for ash removal on CR40. Since that work went better than expected the board had subsequently approved staff to reallocate those funds and have Putney Tree service take down other Ash trees on SH 56 and in other areas in the western portion of the district. This is because we are still expecting grant funding for the eastern portion of the district. Mr. Gray advised the board that we have now spent approximately $45,000 on this project. Mr. McMahon suggested to the board that another $25,000 be authorized to remove ash trees in the western portion of the district so that we can continue to make incremental progress in taking the ash trees down. Mr. Hart asked that we look at how much in total we are going to spend on this initiative. Mr. Gray pointed out that time is of the essence as the longer we leave the trees, the more rotted they become and difficult to clean up. He also pointed out that Putney Tree Service only has limited manpower to address both ash trees and their normal bid work. RESOLUTION: The Massena Electric Utility Board hereby authorizes staff to use an additional $25,000 to remove ash trees in the western portion of the Department’s service territory. Moved by Richard Maginn – Seconded by Mark Ryan All in Favor 3. DEC Ash Grant: Mr. McMahon stated that he has made numerous calls to the DEC and only recently received an email that stated that the DEC hoped to get the grant out by August. 4. NYSERDA Projects: NYSERDA 5737 – Technical Assistance: Mr. McMahon explained that Mr. Gray and the Technicians are beginning to Interact with PSE on this technical assistance grant which will layout a path forward for our distribution system.  Approved by the MEUB 7/17/2025 Page |5 NYSERDA 5986 - Infrastructure Grant: MED has submitted a proposal to NYSERDA for this infrastructure grant that would build the 2305 circuit. There was $22 million available for New York municipals under this program which was funded by the federal governments’ IRA program. It is believed that approximately $60 million worth of project proposals were submitted by NYS municipals and co-ops for consideration in this program, including MED's $1.2 million proposal. There is no timeline for when successful projects will be selected. 5. Grant Funding, Federal and State: 6. AMI Procurement Update: MED staff, including Mrs. Rochefort, Mr. Dobbins, Mr. Gray, and others met with our consultants from PSE, Adirondack Tech, and our vendor, Eaton, for two full days at the beginning of the week. We took a very deep look at equipment, procurement, system layout, and other pertinent matters to facilitate the deployment of the AMI system. 7. DTT Relaying: Mr. McMahon reminded the board of the importance of this relay system and the present unreliability of the existing relay system due to Verizon communication failures. 8. Power Supply 2025/2026: Mr. McMahon suggested that we have a special meeting in July to discuss power supply options. Mr. McMahon said this is an issue that he and Mr. Dobbins have covered with Mr. Shaw in the past. Overall, our strategy has worked out very well for Massena. However, since last year was not favorable and garnered a lot of attention, Mr. McMahon thought that having an open discussion of options and more detail would be worthwhile. Mr. Hart agreed. 5) LEGAL ISSUES: by Eric Gustafson, Attorney: Mr. Gustafson had no remarks for open session. 6) UNFINISHED BUSINESS: St. Lawrence Tour - NYPA Had to cancel the tour and is looking to reschedule again. 7) NEW BUSINESS: 8) ARTICLES OF INTEREST: Mr. McMahon discussed the nuclear article that was included in the board packet and this week’s announcement by the Governor of New York that NYPA is being directed to build a nuclear plant upstate. Upstate was not defined but many believe it will be proposed in Oswego. There was also an article on the widespread outage in Spain and Portugal. Spain and Portugal are heavily dependent on wind and solar, and this outage may have implications for the deployment of wind and solar in the United States. 9) SCHEDULE OF EVENTS: Next regular meeting scheduled July 17, 2025 10) PUBLIC COMMENT:  Approved by the MEUB 7/17/2025 Page |6 11) EXECUTIVE SESSION: Motion to move into executive session at 11:16 pm. Moved by Charles Raiti – Seconded by Richard Maginn - All in Favor Motion to move out of executive session at 12:11 pm. Moved by Mark Ryan – Seconded by Richard Maginn -All in Favor RESOLUTION: The Massena Electric Utility Board motions to increase the salary of the MED Management personnel by 4.75% retroactive to January 1, 2025. Management salaries are as follows: Andrew McMahon to $198,092, Jeffrey Dobbins to $131,887, Matthew Gray to $130,279 and Margo Rochefort to $95,889. Moved by Charles Raiti - Seconded by Mark Ryan Motion to adjourn at 12:11 pm. Moved by Charles Raiti – Seconded by Richard Maginn - All in Favor  Approved by the MEUB 7/17/2025 Power Comparison Apr-2024 to May-2025 kW Supplemental NYPA Actual kW Purchased vs. Monthly Min & Max 55,000 50,000 2020- 2024 Max kW 45,000 2020 - 2024 Min kW 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 - 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 May-25 MWh Actual MWh Purchased vs. Monthly Min & Max Supplemental NYPA 30,000 27,500 25,000 2020 - 2024 Max MWh 22,500 20,000 17,500 2020 - 2024 Min MWh 15,000 12,500 10,000 7,500 5,000 2,500 - 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 May-25 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 2020 - 2024 Max $ $1,000,000 $800,000 $600,000 $400,000 2020- 2024 Min $ $200,000 $- 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 May-25 % NYPA MWh 70% 83% 75% 75% 76% 90% 88% 78% 56% 54% 53% 58% 73% 99% % NYPA $ 37% 39% 34% 33% 32% 41% 39% 36% 16% 10% 10% 18% 27% 43% PPAC $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 $0.007 Supp PPAC $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 $0.000 CES $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 $0.003  Approved by the MEUB 7/17/2025 MASSENA ELECTRIC DEPARTMENT STATEMENT OF CASH FLOW PERIOD ENDING MAY 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 6,941,905 215,627 7,329,378 7,329,378 3 4 CASH RECEIPTS: 5 RECEIPTS FROM CUSTOMERS 1,405,550 156,950 8,469,070 563,270 15,114,600 6 REIMBURSED WORK 0 (3,800) 224,553 205,553 45,000 7 RVRDA CONSULTING FEE 0 (2,500) 15,000 2,500 30,000 8 INTEREST REVENUES 22,053 3,953 92,782 2,282 217,200 9 TOTAL CASH RECEIPTS: 1,427,603 154,603 8,801,405 773,605 15,406,800 10 11 CASH EXPENDITURES: 12 SALARIES & WAGES 193,373 (9,127) 861,860 (29,140) 2,106,000 13 HEALTH INSURANCE 34,942 (13,958) 226,986 (66,414) 586,800 14 FICA & NYS RETIREMENT 14,292 292 356,133 (2,567) 442,700 15 Salaries & Employee Benefits 242,607 (22,793) 1,444,979 (98,121) 3,135,500 16 17 NYPA POWER 153,813 513 795,568 11,868 2,003,800 18 SUPPLEMENTAL POWER 161,188 (61,812) 3,346,812 1,037,012 3,576,200 19 ISO/TRANSMISSION 237,218 67,418 1,342,402 364,602 2,247,000 20 CES 45,527 (16,673) 371,186 (9,914) 793,200 21 Power & ISO 597,747 (10,553) 5,855,969 1,403,569 8,620,200 22 23 CONTRACT SERVICES 17,648 (652) 80,683 (10,817) 219,000 24 CONSULTING SERVICES 716 (10,684) 5,387 (51,613) 137,200 25 LEGAL SERVICES 23,860 5,260 93,534 534 223,600 26 FINANCIAL SERVICES 0 (6,500) 27,900 (4,100) 34,400 27 NYS SALES TAX 45,526 (3,474) 359,840 49,840 595,000 28 REAL ESTATE TAXES 0 0 264,641 19,241 628,700 29 POSTAGE 4,205 (995) 21,162 (4,838) 62,400 30 TELEPHONE 8,073 473 37,973 (27) 91,200 31 CONSUMER REFUNDS 2,811 (1,389) 25,752 4,752 50,000 32 INSURANCE 0 0 207,962 (16,238) 225,800 33 OTHER OPERATING EXP. 39,131 (3,369) 213,109 (19,391) 612,600 34 Paid to Suppliers & Vendors 141,969 (21,331) 1,337,940 (32,660) 2,879,900 35 36 MATERIALS & SUPPLIES 23,984 (26,216) 121,920 (129,080) 602,400 37 DEBT SERVICE 0 0 0 0 0 38 Contrib. to Depr Fund/Capital Exp. (31,461) (238,461) (24,687) (1,059,687) 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 (7,477) (264,677) 97,233 (1,188,767) 3,136,900 43 44 TOTAL CASH EXPENDITURES: 974,846 (319,354) 8,736,121 84,021 17,772,500 45 46 ENDING FUND BALANCE 7,394,662 7,394,662 689,584 4,963,678 47 48 CHANGE IN FUND BALANCE: 452,757 65,284 (2,365,700) 49 Monthly Change YTD Change 50 DEPRECIATION FUND BALANCE: 1,165,098 3,195 (91,073) 51 LIABILITY & CASUALITY FUND BALANCE: 941,332 0 0 52 POST RETIRE. HLTH INS. FUND BALANCE: 1,722,034 6,052 29,623 53 ENERGY EFFICIENCY FUND BALANCE: 72,138 204 (17,625)  Approved by the MEUB 7/17/2025 MASSENA ELECTRIC DEPARTMENT STATEMENT OF CASH FLOW PERIOD ENDING MAY 31, 2025 2024 vs. 2025 MONTH YEAR TO DATE 2024 2025 Difference 2024 2025 Difference 1 OPERATING FUND 2 BEGINNING FUND BALANCE 7,871,018 6,941,905 (929,113) 7,762,534 7,329,378 (433,156) 3 4 CASH RECEIPTS: 5 RECEIPTS FROM CUSTOMERS 1,210,154 1,405,550 195,396 6,708,359 8,469,070 1,760,712 6 REIMBURSED WORK 0 0 0 36,576 224,553 187,977 7 RVRDA CONSULTING FEE 0 0 0 12,500 15,000 2,500 8 INTEREST REVENUES 34,991 22,053 (12,938) 148,828 92,782 (56,046) 9 TOTAL CASH RECEIPTS: 1,245,145 1,427,603 182,458 15% 6,906,262 8,801,405 1,895,143 27% 10 11 CASH EXPENDITURES: 12 SALARIES & WAGES 145,745 193,373 47,628 807,744 861,860 54,116 7% 13 HEALTH INSURANCE 38,536 34,942 (3,594) 231,118 226,986 (4,132) -2% 14 FICA & NYS RETIREMENT 10,764 14,292 3,528 294,996 356,133 61,137 15 Salaries & Employee Benefits 195,045 242,607 47,563 24% 1,333,858 1,444,979 111,121 8% 16 17 NYPA POWER 156,413 153,813 (2,600) 809,628 795,568 (14,060) 18 SUPPLEMENTAL POWER 370,710 161,188 (209,522) 1,716,825 3,346,812 1,629,987 19 ISO/TRANSMISSION 150,399 237,218 86,819 955,075 1,342,402 387,328 20 CES 59,869 45,527 (14,342) 367,291 371,186 3,895 21 Power & ISO 737,391 597,747 (139,644) -19% 3,848,819 5,855,969 2,007,150 52% 22 23 CONTRACT SERVICES 22,396 17,648 (4,748) 108,723 80,683 (28,041) 24 CONSULTING SERVICES 1,377 716 (661) 6,661 5,387 (1,275) 25 LEGAL SERVICES 15,916 23,860 7,943 67,547 93,534 25,986 26 FINANCIAL SERVICES 4,448 0 (4,448) 30,248 27,900 (2,348) 27 NYS SALES TAX 41,114 45,526 4,412 278,117 359,840 81,723 28 REAL ESTATE TAXES 0 0 0 240,241 264,641 24,400 29 POSTAGE 3,800 4,205 405 18,040 21,162 3,122 30 TELEPHONE 8,147 8,073 (75) 28,654 37,973 9,319 31 CONSUMER REFUNDS 12,674 2,811 (9,864) 52,134 25,752 (26,382) 32 INSURANCE 0 0 0 187,599 207,962 20,363 33 OTHER OPERATING EXP. 24,154 39,131 14,977 242,972 213,109 (29,863) 34 Paid to Suppliers & Vendors 134,027 141,969 7,942 6% 1,260,936 1,337,940 77,004 6% 35 36 MATERIALS & SUPPLIES 91,594 23,984 (67,610) 205,501 121,920 (83,581) 37 DEBT SERVICE 0 0 0 0 0 0 38 CONTRIB. to Depr. Fund\Capital Exp. 6,798 (31,461) (38,259) 68,297 (24,687) (92,984) 39 CONTRIB. TO INS FUND 0 0 0 0 0 0 40 CONTRIB. to Post Retire. Hlth Ins Fund 0 0 0 0 0 0 41 CONTRIB. to Energy Efficiency Fund 0 0 0 75 0 (75) 42 Utility Investment & Other Activities 98,391 (7,477) (105,868) 273,874 97,233 (176,641) 43 44 TOTAL CASH EXPENDITURES: 1,164,854 974,846 (190,008) -16% 6,717,487 8,736,121 2,018,634 30% 45 46 ENDING FUND BALANCE 7,951,309 7,394,662 (556,647) 47 48 CHANGE IN FUND BALANCE: 80,291 452,757 372,466 188,775 65,284 (123,491) 49 50 DEPRECIATION FUND BALANCE: 1,113,665 1,165,098 51,433 51 LIABILITY & CASUALITY FUND BALANCE: 924,251 941,332 17,081 52 POST RETIRE. HLTH INS. FUND BALANCE: 1,644,670 1,722,034 77,364 53 ENERGY EFFICIENCY FUND BALANCE: 96,942 72,138 (24,804) Approved by the MEUB 7/17/2025 Customer Impact Customer Minutes Top Quartile 12-Month Average 90000 80000 70000 60000 50000 40000 30000 20000 10000 0 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25  Approved by the MEUB 7/17/2025 Annual Congestion / (Counter Congestion) $- Nov-19 Nov-20 Nov-21 Nov-22 Nov-23 Nov-24 $(200,000) $(400,000) $(600,000) $(800,000) $(1,000,000) $(1,200,000) Congestion / (Counter Congestion) $50,000 $0 -$50,000 -$100,000 -$150,000 -$200,000 -$250,000 -$300,000 Price per MWh Zone D Niagara $100.00 $90.00 $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $0.00