Massena Electric Department

Page 2 MASSENA ELECTRIC UTILITY BOARD MINUTES of Wednesday, August 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 - Excused Eric Gustafson, Attorney Kristy Baker, Town Liaison - Excused Summer Interns – Aaron Binion Christine Grant Chairman Shaw opened the meeting at 11:30 am 1) APPROVAL OF MINUTES: RESOLUTION: The Massena Electric Utility Board hereby approves the minutes of the regular meeting of July 17, 2025 as presented. Moved by Charles Raiti- Seconded by Rene Hart - All in Favor RESOLUTION: The Massena Electric Utility Board hereby approves the minutes of the special meeting of July 29, 2025 as presented. Moved by Mark Ryan- Seconded by Rene Hart - All in Favor RESOLUTION: The Massena Electric Utility Board hereby approves the minutes of the regular meeting of August 12, 2025 as presented. Moved by Charles Raiti- 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 1,148 days. As of July 30th, 2025, MED has been 405 days without a reportable injury. MED experienced a reportable injury on June 20, 2024 when an Employee cut their forearm while stripping wire. All MED employees attended a harassment training presented by our Human Resources consultant, Ned Hirt.  Page 3 B. Customer Impact Chart: MED Customers experienced only 263 Customer Impact Minutes (CIM) throughout the month of July. The largest CIM contributor was due to a bird contact on Ridgewood Ave. Given the low amount of CIM in July, the 12-month average has decreased to 18,109. C. Reliability: MED Crews responded to only six calls throughout the month of July, with three calls affecting our Customer Impact Minute total. Of the calls received, three calls affected only one customer and three calls affected more than one customer. Also, the 1,307 customers served by circuit 2303 saw a momentary outage due to a suspected bird contact All in all, July was a very quiet month in terms of reliability. An amended reliability report will be provided at next month’s board meeting to include a hit pole and outage on Andrews St that affected approximately 30 Customers for 7 hours or 12,600 Customer Impact Minutes. D. Work Schedule: Crews are replacing poles on East Orvis Street in the vicinity of the Grove St intersection. Once crews are complete with this job all poles on E Orvis Street from Bayley Rd to Main St will have been replaced in the last 10 years. Crews are preparing to pull wire on State Highway 420 between Gladding Rd and Fayette Rd as part of the St Hwy 420 reconductor project. 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 $8,991.01 as audited by Mr. Charles Raiti. Moved by Charles Raiti - Seconded by Rene Hart - All in Favor B. Power Comparison Graph: Power Costs were over $643,700 for the month. Peak Demand was 31,140 kW, similar to previous years, set on July 16th at 7:00 pm during a stretch of hot days. MWh purchased totaled 15,777, also similar to previous years. Supplemental Power costs were only $254,000 for the month. 3,800 MWh of incremental energy purchased, similar to July 2024. Zone D Average was over $66.80/MWh, $20/MWh higher than June and $30/MWh higher than July 2024. Transmission related expenditures totaled $186,630. Impact to customers - August PPAC 2.4¢ / kWh. C. Cash Flow: The Operating Fund increased by $40,000. The Operating Fund at month end was $7.7 MM. July receipts were over $1 MM. Customers continue to pay on their winter heating bills. Interest Revenues were higher than budgeted for the month. Interest rates remain above 4%. Interest Revenue for the month includes interest and discounts earned on treasuries held. Expenditures totaled $960,800 for the month, which was $243,600 less than budgeted. RESOLUTION: The Massena Electric Utility Board hereby approves the bills as audited by Mr. Charles Raiti totaling $985,954.85. Moved by Charles Raiti – Seconded by Rene Hart- All in Favor  Page 4 4) COMMITTEE REPORTS: by Andrew McMahon, Superintendent A. Personnel 1. Staff Update: Mr. McMahon noted that one person is still out in the front office but was expected to return soon. At one point we had two of the three union staff out and had to reduce hours. 2. Training: Mr. Gray will be taking part 2 of his remote training on overhead line construction. This training formalizes what he has already been doing for MED. 3. Summer Interns: Mr. McMahon asked Mr. Binion to summarize the work he has done this summer on the AEGIS analysis done earlier this year. Mr. Binion explained that he and Ms. Grant had provided a summary path forward of the report and that they have completed some of the more routine suggestions made by AEGIS. Mr. McMahon asked Ms. Grant to summarize the work she has done on RP3. Ms. Grant explained that she had gone through the self-evaluation to identify where, in her opinion, MED would score on this process. Mr. McMahon explained to the Board that this is an evaluation he is still working on with Ms. Grant. MED had not submitted an evaluation in the last cycle because the RP3 process continues to evolve. For instance, the criteria for succession planning does not consider the limitations of Union contracts or civil service guidelines. B. Finance & Economic Development 1. Energy Efficiency Programs: Treasurer Dobbins reported that one commercial customer completed the work identified in an audit earlier in the year. The customer is expected to file a credit request prior to the next meeting. This will be reviewed by the Finance Committee and brought to the full board for approval once all required documentation is submitted. 2. S&S Software Upgrade (Cloud servicing etc.): Treasurer Dobbins and Deputy Treasurer Rochefort started testing areas of the Financial Management System (FMS). It has been slow going thus far. A return to full staff here in August should allow more time for testing going forward. C. Engineering & Energy 1. Cybersecurity: The focus remains on getting equipment in place for the AMI project. This includes the Spectrum internet connections that will assist with the backhaul of the AMI data. The initial connections will be installed before the end of the month. Once those are installed Department staff and Adirondack Tech will setup the IT equipment being implemented to keep the data secure. 2. Ash Update: Extra work - Mr. Gray gave an update on the work being done in the western portion of the service territory that is not covered by the grant. Ash Grant - Mr. Dobbins noted that the approved contract was received from the DEC and the Department could start work on this now. Mr. Gray explained that he has directed Putney Tree Service to begin preparing to execute the work related to the grant. Mr. McMahon will have to communicate with customers that the Ash Trees near our distribution lines will be cut.  Page 5 3. NYSERDA Projects: PON 5737 - This is a technical assistance grant. MED staff have provided PSE Engineering drawings and data to begin their analysis. PON 5896 - Mr. McMahon reported that NYSERDA has approved our application, and it has now gone to US Department of Energy. We are awaiting acceptance from US DOE to begin work on this significant infrastructure project. 4. AMI Update: Mr. McMahon advised the board that some minor pieces of equipment are beginning to arrive but the most critical pieces are presently delayed until late October. The majority of equipment has yet to be approved and would be delivered in 2026. 5. DTT Relaying: Our consulting engineers have made some progress, but there is still a long way to go to coordinate with Alcoa and NYPA. 6. Power Supply 2025/2026: Mr. McMahon suggested that we cover this with a presentation at next month’s board meeting. 7. Grasse River Incident: Mr. McMahon reminded the board of a close in fault caused by NYPA and their contractor in June. MED had scheduled the testing of the critical equipment that may have been impacted in late July, which was the earliest our test company (now Northline, formerly Black and MacDonald) could be here. The late July dates were cancelled because the ISO and NYPA declared a “hands-off day” due to hot weather. We rescheduled the testing for mid-September which was the next available date that Northline had. In recent days we found out that NYPA has now scheduled other work starting in early September that will make our testing impossible at this point. After discussion with the Board, Mr. McMahon will be reaching out to NYPA to explore alternatives for our testing. 5) LEGAL ISSUES: by Eric Gustafson, Attorney: Mr. Gustafson had no remarks for open session. 6) UNFINISHED BUSINESS: St. Lawrence Tour is scheduled for August 27. Mr. Raiti and Mr. Ryan will be attending. 7) NEW BUSINESS: St. Lawrence/MED contract: - Mr. McMahon and Mr. Gustafson explained this contract states that it is a 1 year extension of the existing agreement. A longer term extension is being worked on that will address the fact that MED is now regulated by NYPA since we departed NYMPA and the NYS PSC. RESOLUTION: The Massena Electric Utility Board here by authorizes Chairman Shaw to sign the Letter Agreement to extend the “Agreement Governing the Sale of St. Lawrence-FDR Project Power and Energy to the Town of Massena Electric Department for Economic Development Purposes” to September 1, 2026. Moved by Charles Raiti – Seconded by Mark Ryan- All in Favor  Page 6 Renewal CSX Agreement NYC041897 and NYC046415 - Treasurer Dobbins reviewed 2 right- of-way agreements between the Department and CSX. These agreements were established in 2001 and 2003 respectively and relate to 2 railroad crossings off of County Route 37 that expired on May 31, 2024. The new agreement extends the right-of-way access until May 31, 2049 at a one-time cost of $6,750.00 per agreement. Article XV.B of Massena Electric’s tariff discusses Rights-of-Way for Extensions of Lines and Facilities. These costs are the responsibility of the customer requesting the extension. Treasurer Dobbins indicated that he would be contacting the impacted parties regarding payment for the agreement extension. The tariff does allow a customer to pay these costs over a period of time and Treasurer Dobbins will offer them this option if they are unable to pay the full amount. RESOLUTION: The Massena Electric Utility Board hereby authorizes Chairman Shaw to sign the July 9, 2025 amendment to CSX agreements NYC04615 and NYC 041897 extending the term of these agreements to May 31, 2049. Moved by Charles Raiti – Seconded by Mark Ryan - All in Favor 8) ARTICLES OF INTEREST: 9) SCHEDULE OF EVENTS: Next regular meeting scheduled September 18, 2025 10) PUBLIC COMMENT: 11) EXECUTIVE SESSION: Motion to move into executive session at 1:05 pm. Moved by Charles Raiti – Seconded by Mark Ryan - All in Favor Motion to move out of executive session at 2:30 pm. Moved by Rene Hart – Seconded by Richard Maginn -All in Favor Motion to adjourn at 2:30 pm. Moved by Rene Hart – Seconded by Mark Ryan - All in Favor  Power Comparison Jun-2024 to Jul-2025 kW Supplemental NYPA Actual kW Purchased vs. Monthly Min & Max 55,000 50,000 45,000 40,000 2020- 2024 Max kW 35,000 30,000 2020 - 2024 Min kW 25,000 20,000 15,000 10,000 5,000 - Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 MWh Actual MWh Purchased vs. Monthly Min & Max Supplemental NYPA 30,000 27,500 25,000 22,500 20,000 2020 - 2024 Max MWh 17,500 2020 - 2024 Min MWh 15,000 12,500 10,000 7,500 5,000 2,500 - Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-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 $- Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 % NYPA MWh 75% 75% 76% 90% 88% 78% 56% 54% 53% 58% 73% 99% 75% 76% % NYPA $ 34% 33% 32% 41% 39% 36% 16% 10% 10% 18% 27% 43% 28% 26% PPAC $0.013 $0.011 $0.012 $0.009 $0.007 $0.010 $0.019 $0.033 $0.039 $0.023 $0.016 $0.007 $0.021 $0.024 Supp PPAC $0.000 $0.000 $0.000 $0.000 $0.000 $0.016 $0.052 $0.092 $0.082 $0.039 $0.000 $0.000 $0.000 $0.000 CES $0.004 $0.004 $0.004 $0.004 $0.004 $0.005 $0.004 $0.004 $0.004 $0.004 $0.003 $0.003 $0.003 $0.003  MASSENA ELECTRIC DEPARTMENT STATEMENT OF CASH FLOW PERIOD ENDING JULY 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 7,689,890 1,213,112 7,329,378 7,329,378 3 4 CASH RECEIPTS: 5 RECEIPTS FROM CUSTOMERS 976,652 (3,848) 10,555,449 697,549 15,114,600 6 REIMBURSED WORK 0 (3,700) 224,553 198,053 45,000 7 RVRDA CONSULTING FEE 2,500 0 17,500 0 30,000 8 INTEREST REVENUES 21,669 3,569 134,368 7,668 217,200 9 TOTAL CASH RECEIPTS: 1,000,820 (3,980) 10,931,869 903,269 15,406,800 10 11 CASH EXPENDITURES: 12 SALARIES & WAGES 170,112 8,112 1,205,185 (9,815) 2,106,000 13 HEALTH INSURANCE 35,979 (12,921) 299,043 (92,157) 586,800 14 FICA & NYS RETIREMENT 12,585 1,385 381,541 441 442,700 15 Salaries & Employee Benefits 218,677 (3,423) 1,885,768 (101,532) 3,135,500 16 17 NYPA POWER 147,582 (21,118) 1,104,876 (22,824) 2,003,800 18 SUPPLEMENTAL POWER 158,918 (17,482) 3,508,063 898,563 3,576,200 19 ISO/TRANSMISSION 217,455 39,155 1,771,729 435,929 2,247,000 20 CES 39,349 (14,051) 448,526 (41,274) 793,200 21 Power & ISO 563,304 (13,496) 6,833,194 1,270,394 8,620,200 22 23 CONTRACT SERVICES 8,205 (9,995) 101,243 (26,757) 219,000 24 CONSULTING SERVICES 610 (10,790) 6,373 (73,427) 137,200 25 LEGAL SERVICES 13,597 (5,003) 118,000 (12,200) 223,600 26 FINANCIAL SERVICES 2,970 2,970 30,870 (1,130) 34,400 27 NYS SALES TAX 39,575 575 431,394 44,394 595,000 28 REAL ESTATE TAXES 0 0 329,714 18,714 628,700 29 POSTAGE 5,610 410 31,772 (4,628) 62,400 30 TELEPHONE 10,557 2,957 56,544 3,344 91,200 31 CONSUMER REFUNDS 4,975 775 33,942 4,542 50,000 32 INSURANCE 0 (1,600) 207,962 (17,838) 225,800 33 OTHER OPERATING EXP. 33,220 (9,280) 293,519 (23,981) 612,600 34 Paid to Suppliers & Vendors 119,320 (28,980) 1,641,333 (88,967) 2,879,900 35 36 MATERIALS & SUPPLIES 32,557 (17,643) 161,868 (189,532) 602,400 37 DEBT SERVICE 0 0 0 0 0 38 Contrib. to Depr Fund/Capital Exp. 26,940 (180,060) 9,172 (1,439,828) 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 59,497 (197,703) 171,040 (1,629,360) 3,136,900 43 44 TOTAL CASH EXPENDITURES: 960,798 (243,602) 10,531,335 (549,465) 17,772,500 45 46 ENDING FUND BALANCE 7,729,912 7,729,912 1,452,734 4,963,678 47 48 CHANGE IN FUND BALANCE: 40,022 400,534 (2,365,700) 49 Monthly Change YTD Change 50 DEPRECIATION FUND BALANCE: 1,171,405 3,210 (84,767) 51 LIABILITY & CASUALITY FUND BALANCE: 952,799 0 11,467 52 POST RETIRE. HLTH INS. FUND BALANCE: 1,733,981 6,081 41,570 53 ENERGY EFFICIENCY FUND BALANCE: 72,541 205 (17,222)  MASSENA ELECTRIC DEPARTMENT STATEMENT OF CASH FLOW PERIOD ENDING JULY 31, 2025 2024 vs. 2025 MONTH YEAR TO DATE 2024 2025 Difference 2024 2025 Difference 1 OPERATING FUND 2 BEGINNING FUND BALANCE 7,939,992 7,689,890 (250,102) 7,762,534 7,329,378 (433,156) 3 4 CASH RECEIPTS: 5 RECEIPTS FROM CUSTOMERS 940,995 976,652 35,656 8,511,100 10,555,449 2,044,348 6 REIMBURSED WORK 1,921 0 (1,921) 38,497 224,553 186,056 7 RVRDA CONSULTING FEE 5,000 2,500 (2,500) 17,500 17,500 0 8 INTEREST REVENUES 40,812 21,669 (19,143) 221,243 134,368 (86,875) 9 TOTAL CASH RECEIPTS: 988,728 1,000,820 12,092 1% 8,788,340 10,931,869 2,143,530 24% 10 11 CASH EXPENDITURES: 12 SALARIES & WAGES 145,842 170,112 24,270 1,137,724 1,205,185 67,461 6% 13 HEALTH INSURANCE 37,441 35,979 (1,462) 305,976 299,043 (6,934) -2% 14 FICA & NYS RETIREMENT 10,764 12,585 1,822 319,394 381,541 62,146 15 Salaries & Employee Benefits 194,048 218,677 24,629 13% 1,763,094 1,885,768 122,673 7% 16 17 NYPA POWER 150,658 147,582 (3,076) 1,115,993 1,104,876 (11,117) 18 SUPPLEMENTAL POWER 114,999 158,918 43,919 1,892,429 3,508,063 1,615,634 19 ISO/TRANSMISSION 160,937 217,455 56,518 1,274,047 1,771,729 497,682 20 CES 50,719 39,349 (11,370) 468,230 448,526 (19,704) 21 Power & ISO 477,313 563,304 85,992 18% 4,750,699 6,833,194 2,082,495 44% 22 23 CONTRACT SERVICES 2,004 8,205 6,201 129,345 101,243 (28,103) 24 CONSULTING SERVICES 49,096 610 (48,486) 56,132 6,373 (49,759) 25 LEGAL SERVICES 25,083 13,597 (11,485) 111,120 118,000 6,881 26 FINANCIAL SERVICES 0 2,970 2,970 30,248 30,870 622 27 NYS SALES TAX 39,181 39,575 394 352,688 431,394 78,705 28 REAL ESTATE TAXES 0 0 0 304,107 329,714 25,607 29 POSTAGE 4,096 5,610 1,514 25,636 31,772 6,136 30 TELEPHONE 8,116 10,557 2,441 44,598 56,544 11,946 31 CONSUMER REFUNDS 5,018 4,975 (43) 64,382 33,942 (30,439) 32 INSURANCE 1,442 0 (1,442) 189,041 207,962 18,921 33 OTHER OPERATING EXP. 26,699 33,220 6,521 359,409 293,519 (65,890) 34 Paid to Suppliers & Vendors 160,736 119,320 (41,416) -26% 1,666,707 1,641,333 (25,373) -2% 35 36 MATERIALS & SUPPLIES 23,402 32,557 9,154 249,322 161,868 (87,454) 37 DEBT SERVICE 0 0 0 0 0 0 38 CONTRIB. to Depr. Fund\Capital Exp. 79,978 26,940 (53,038) 127,733 9,172 (118,561) 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 ENERGY EFFICIENCY 0 0 0 75 0 (75) 42 Utility Investment & Other Activities 103,380 59,497 (43,883) 377,130 171,040 (206,089) 43 44 TOTAL CASH EXPENDITURES: 935,476 960,798 25,322 3% 8,557,630 10,531,335 1,973,705 23% 45 46 ENDING FUND BALANCE 7,993,244 7,729,912 (263,332) 47 48 CHANGE IN FUND BALANCE: 53,252 40,022 (13,230) 230,710 400,534 169,824 49 50 DEPRECIATION FUND BALANCE: 900,169 1,171,405 271,235 51 LIABILITY & CASUALITY FUND BALANCE: 923,518 952,799 29,280 52 POST RETIRE. HLTH INS. FUND BALANCE: 1,658,993 1,733,981 74,988 53 ENERGY EFFICIENCY FUND BALANCE: 95,864 72,541 (23,323)