Massena Electric Department

Approved by the MEUB on 10/20/2025 Page 1 of 18 MASSENA ELECTRIC UTILITY BOARD MINUTES of Thursday, September 18, 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 - Excused Margo Rochefort, Deputy Treasurer Mark Ryan Patrick Facteau, Town Liaison Eric Gustafson, Attorney Kristy Baker, Town Liaison Chairman Shaw opened the meeting at 1:01 pm. 1) APPROVAL OF MINUTES: RESOLUTION: The Massena Electric Utility Board hereby approves the minutes of the special meeting of August 19, 2025 as presented. Moved by Rene Hart- Seconded by Richard Maginn - All in Favor RESOLUTION: The Massena Electric Utility Board hereby approves the minutes of the regular meeting of August 20, 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 special meeting of August 25, 2025 as presented. Moved by Mark Ryan- Seconded by Richard Maginn - All in Favor 2) OPERATIONS UPDATE: by, Matt Gray, Deputy Superintendent July Customer Impact Chart and Outage Report Revision: An error was made in last month’s CIM reporting. There was a hit pole on Andrews Street that was not accounted for that involved a significant customer impact and restoration effort. The motor vehicle accident caused the pole to break in three pieces and caused a 3-phase transformer bank to be dislodged from the pole which created a significant oil spill. A third-party contractor was brought in to remediate the affected area. This incident involved a 7-hour outage for 70 customers or 29,379 customer impact minutes. This increase in CIM elevated the monthly CIM to 29,642 and the 12-month average is at 20,558.  Approved by the MEUB on 10/20/2025 Page 2 of 18 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 1,179 days. As of August 31st, 2025, MED has been 436 days without a reportable injury. MED experienced a reportable injury on June 20th, 2024 when an Employee cut their forearm while stripping wire. Owen McIntee with NEPPA was onsite twice during the month of August. Owen covered such topics as circuit maps, mutual aid response and lockout/tagout procedures. B. Customer Impact Chart: MED Customers experienced 22,254 Customer Impact Minutes (CIM) throughout the month of August. The largest CIM contributor was due to a goose contact on State Highway 131 and the 12-month average now stands at 15,838. C. Reliability: MED Crews responded to thirteen calls throughout the month of August, with six calls affecting our Customer Impact Minute total. Of the calls received, two calls affected only one customer, six calls affected only one customer and five calls affected more than one customer. The largest contributor was an outage on SH 131 due to a goose contact near Whalen Park. This outage affected 332 customers for 57-minutes. The second largest contributor was an animal contact on Reed Drive that affected 48 customers for 58-minutes. The remainder of the calls received in August were relatively small in impact and the result of tree, bird and animal contacts. D. Work Schedule: Crews have two poles left to set on E Orvis Street. This job has taken a back seat to some of the more pressing jobs that we have encountered over the last month. Crews assisted Bay Crane with the transport of the third and final transformer for NYPA’s new Haverstock Substation on Fregoe Rd. This entailed clearing overhead obstacles along the transport route from Whitzel Blvd. to Fregoe Rd. Crews have replaced the primary conductor from Gladding Rd to Fayette Rd on SH 420. The goal is to replace the undersized wire from Gladding to County Route 38 by the onset of winter. Crews provided isolation for the replacement of the box culvert on Center St between Main and Maple. This involved removing overhead conductor and isolating the primary in the work zone. Crews have completed the NYPA Fregoe Rd Phase 2 relocation project in support of the NYPA Smart Path 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 $10,550.07 as audited by Mr. Rene Hart Moved by Rene Hart - Seconded by Richard Maginn - All in Favor B. Power Comparison Graph: Power Costs were higher than previous years and totaled over $553,000. Peak Demand was 31,560 kW, similar to previous years, set on August 12th at 6:00 pm, during a stretch of hot days. MWh purchased totaled 14,100, lower than previous years. Usage by customers dropped as temperatures cooled at the end of the month. Supplemental Power costs were $170,230 for the month. 3,560 MWh of incremental energy purchased. Zone D Average was over $47.80/MWh, down from $66.80 in July, $14/MWh higher than Aug 2024. Transmission related expenditures totaled $195,300. Impact to customers - September PPAC 2.5¢ / kWh.  Approved by the MEUB on 10/20/2025 Page 3 of 18 C. Cash Flow: The Operating Fund decreased by $122,660. The Operating Fund at month end was $7.6 MM. August receipts were over $1 MM, customers continue to pay on their winter heating bills. Interest Revenues remain higher. Expenditures totaled $1.14 MM for the month, which was $196,100 less than budgeted. RESOLUTION: The Massena Electric Utility Board hereby approves the bills as audited by Mr. Rene Hart totaling $1,116,910.47. Moved by Rene Hart – Seconded by Mark Ryan- All in Favor 4) COMMITTEE REPORTS: by Andrew McMahon, Superintendent A. Personnel 1. Staff Update: Mr. McMahon reported that the staff is presently back to full strength after a summer where we were strained. 2. Training: Mr. Gray gave feedback to the board on a training program he participated in through the Spring and completed in early September. 3. Summer Interns: Mr. McMahon summarized the work the interns had completed this summer. Most importantly is the completion of the Stray Voltage testing that is required each year. There were also other valuable tasks that were completed by the interns including work on the AEGIS report and RP3 assessment. B. Finance & Economic Development 1. Energy Efficiency Programs: Treasurer Dobbins reported that one residential audit was performed since the last meeting, and one commercial customer completed work identified in the previous audit. The residential customer will need to make the improvements identified in the report to receive the bill credit. The commercial customer installed new LED lighting identified in the audit. Additional improvements were listed in the audit and still need to be implemented for the customer to receive credit for the audit fee. RESOLUTION: The Massena Electric Utility Board hereby approves the commercial energy efficiency credit in the amount of $1,081.75. Moved by Rene Hart – Seconded by Mark Ryan - All in Favor 2. Weatherization Kits: The purchase of weatherization kits for the upcoming heating season was discussed. Deputy Treasure Rochefort reported there were a few left from last year. The vendor providing the kits provided a quote for 400 kits that included the same items as previous years, and the price was a few cents per kit less than those purchased in 2024. RESOLUTION: The Massena Electric Utility Board hereby authorizes the purchase of 400 weatherization kits, to be paid out of the Energy Efficiency Fund, at a total cost not to exceed $10,100.00. Moved by Rene Hart – Seconded by Mark Ryan – All in Favor Approved by the MEUB on 10/20/2025 Page 4 of 18 3. S&S Software Upgrade (Cloud servicing etc.): Testing of the Financial Management System (FMS) continued in September. A few issues were identified that S&S is working to correct. Treasurer Dobbins noted that he and Deputy Treasurer Rochefort requested that S&S project team members be on-site to assist with testing and address issues identified. Having them on-site will improve their understanding of how we operate and reduce the response time to issues that are identified. S&S is scheduled to be on site Oct 14-16. 4. 2026 Draft Budget 2026 Draft Budget, including a Draft Capital Budget, was reviewed by management. This was an initial proposal and that meetings with the various committees would take place prior to bringing the final budget to the board at the October meeting. The Draft Budget includes an increase in revenue compared to the 2025 budget. Treasurer Dobbins noted the increase was less than $16 million in projected revenues for 2025. 2025 projected revenues are higher than anticipated due to the cold temperatures during January and February, and higher power costs during that same time period. 2026 revenues reflect kWh sales similar to 2023 and 2024, and a decrease to the cost of power compared to projected 2025. 2026 expenditures, other than Capital expenses, are expected to be lower than 2025 projected. Capital budget includes several large expenditures that management will discuss with the Finance and Engineering committees. There was some discussion regarding pole integrity testing. Chairman Shaw asked if it was necessary to do all the poles or just some of the older poles. Deputy Superintendent Gray noted that this was an item brought up by AEGIS, during the risk assessment earlier in the year and management would look at this further prior to meeting with the committees. Other large capital expenditures for 2026 include upgrades to the breakers at Engstrom substation, AMI upgrade, purchase of 2 large line trucks and buildout of circuit 2305. AMI upgrade in 2026 reflects the purchase and installation of the majority of equipment relate to this project (meters and communication equipment). Some of this was originally planned for 2025 and due to delays will not occur until 2026. The capital budget also reflects a NYSERDA reimbursement of $1.2 million. The 2305 buildout was approved as part of NYSERDA PON 5896, Grid Resiliency. C. Engineering & Energy 1. Cybersecurity: Treasurer Dobbins reported that Adirondack Techs started upgrading some of the networking equipment. This work includes replacing some older switches and network drops in preparation for the AMI project. Once the work is completed at 71 E. Hatfield, switches at the substations will also be replaced. Superintendent McMahon noted that Nick Lawler, General Manager of Littleton, MA, was interviewed for an upcoming 60 Minutes report regarding a cyber breach that happened at his utility. Littleton is an APPA member, and Mr. McMahon will try to forward the interview once the story has aired. 2. Ash Update: Mr. McMahon and Mr. Gray reported on the progress that is being made on Ash Tree removal. Presently, Putney is working on a main line section in the western portion of the service territory on SH 131. Work should be commencing shortly on the Ash grant work in the Eastern portion of the district. Mr. McMahon asked that the Board consider approving an additional $25,000 for Ash removal in the Western portion of the service territory. He stated that  Approved by the MEUB on 10/20/2025 Page 5 of 18 our focus, and the focus of our contractor, will largely be in the Eastern portion of the service territory for the rest of the year, but should emergent issues come up, this funding would allow staff to move forward as required. RESOLUTION: The Massena Electric Utility Board hereby approves the motion to spend $25,000 for additional Ash tree removal. Moved by Mark Ryan – Seconded by Richard Maginn – All in Favor 3. NYSERDA Projects: PON 5737 - This is a Technical Assistance Grant that we have received. Work continues to progress on this. PON 5896 – We have received preliminary approval for this grant from NYSERDA. The grant still has to be approved by US DOE. DOE has had a series of clarifying questions. With the impending government shut down we are uncertain whether this project will be suspended. 4. AMI Update: Mr. McMahon reported that staff continues to make as much progress as possible with the materials we have been supplied thus far. The first 250 meters should be received in late October. This will enable staff to do the acceptance testing and determine if we will go forward with full deployment of the system. 5. DTT Relaying: Mr. McMahon reported that we are still having calls to develop a path forward to address this problem. The problem involves MED, Alcoa and NYPA as well as Verizon. Developing a path forward will require developing a mutually agreeable plan for the 3 primary parties. 6. Power Supply 2025/2026: Mr. McMahon and Mr. Dobbins described the market conditions in northern NY and the mechanics of NYPA’s monthly allocation to MED. Staff explained that given the uncertainty of weather and load, it is difficult to know how much power to lock in. Further, present pricing for the winter is much higher than in past years. At this point it may be advisable to see where the market goes before making any commitments. 7. Grasse River Incident: Mr. Gray reported that the equipment testing that was required subsequent to the NYPA/contractor safety incident has been completed. There were no abnormal findings. 5) LEGAL ISSUES: by Eric Gustafson, Attorney: Mr. Gustafson had no remarks for open session. 6) UNFINISHED BUSINESS: St. Lawrence Tour - Mr. McMahon, Mr. Ryan and Mr. Raiti commented on the tour. Renewal CSX Agreement NYC041897and NYC046415: The two primary parties related to these crossings were contacted by Treasurer Dobbins. He reported that both were surprised about the fee being requested by CSX. The impacted parties indicated that they were interested in a payment plan to pay the $6,750. A copy of the initial agreement and the amendment extending the crossing until 2049 were sent to the appropriate parties and Treasurer Dobbins planned to follow up with them in the following week regarding final arrangements for paying the CSX fee.  Approved by the MEUB on 10/20/2025 Page 6 of 18 7) NEW BUSINESS: Superintendent McMahon reported that the Department received confirmation that the small Digger Truck, on order for nearly 2-years, was expected to ship in the coming weeks. At over $300,000, the cost of the truck is in line with the estimates from the vendor, Altec. RESOLUTION: The Massena Electric Utility Board hereby authorizes the purchase of a new Altec Digger Derrick, to be paid out of the Depreciation Fund, at a cost not to exceed $320,000. Moved by Mark Ryan – Seconded by Rene Hart- All in Favor 8) ARTICLES OF INTEREST: 9) SCHEDULE OF EVENTS: Next regular meeting scheduled October 20, 2025 10) PUBLIC COMMENT: 11) EXECUTIVE SESSION: Motion to move into executive session at 2:08 pm. Moved by Mark Ryan – Seconded by Renee Hart - All in Favor Motion to move out of executive session at 2:27 pm. Moved by Richard Maginn – Seconded by Mark Ryan -All in Favor Motion to adjourn at 2:28 pm. Moved by Rene Hart – Seconded by Mark Ryan - All in Favor Approved by the MEUB on 10/20/2025 Page 7 of 18 Customer Impact Customer Minutes Top Quartile 12-Month Average 90000 80000 70000 60000 50000 40000 30000 20000 10000 0 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 Approved by the MEUB on 10/20/2025 Page 8 of 18 Customer Impact Customer Minutes Top Quartile 12-Month Average 90000 80000 70000 60000 50000 40000 30000 20000 10000 0 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Approved by the MEUB on 10/20/2025 Power Comparison Jul-2024 to Aug-2025 Page 9 of 18 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 25,000 2020 - 2024 Min kW 20,000 15,000 10,000 5,000 - 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 Aug-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 - 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 Aug-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 $1,000,000 $800,000 2020 - 2024 Max $ $600,000 $400,000 2020- 2024 Min $ $200,000 $- 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 Aug-25 % NYPA MWh 75% 76% 90% 88% 78% 56% 54% 53% 58% 73% 99% 75% 76% 75% % NYPA $ 33% 32% 41% 39% 36% 16% 10% 10% 18% 27% 43% 28% 26% 29% PPAC $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 $0.025 Supp PPAC $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 $0.000 CES $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 $0.003  Approved by the MEUB on 10/20/2025 Page 10 of 18 MASSENA ELECTRIC DEPARTMENT STATEMENT OF CASH FLOW PERIOD ENDING AUGUST 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 7,729,912 1,452,734 7,329,378 7,329,378 3 4 CASH RECEIPTS: 5 RECEIPTS FROM CUSTOMERS 982,541 (49,759) 11,537,990 647,790 15,114,600 6 REIMBURSED WORK 7,663 3,963 232,215 202,015 45,000 7 RVRDA CONSULTING FEE 0 (2,500) 17,500 (2,500) 30,000 8 INTEREST REVENUES 27,535 9,435 161,903 17,103 217,200 9 TOTAL CASH RECEIPTS: 1,017,739 (38,861) 11,949,608 864,408 15,406,800 10 11 CASH EXPENDITURES: 12 SALARIES & WAGES 209,647 7,147 1,414,832 (2,668) 2,106,000 13 HEALTH INSURANCE 35,189 (13,711) 334,231 (105,869) 586,800 14 FICA & NYS RETIREMENT 16,163 2,163 397,704 2,604 442,700 15 Salaries & Employee Benefits 260,999 (4,401) 2,146,767 (105,933) 3,135,500 16 17 NYPA POWER 158,229 (15,871) 1,263,105 (38,695) 2,003,800 18 SUPPLEMENTAL POWER 254,165 16,265 3,762,228 914,828 3,576,200 19 ISO/TRANSMISSION 186,628 (4,072) 1,958,357 431,857 2,247,000 20 CES 44,678 (17,722) 493,204 (58,996) 793,200 21 Power & ISO 643,700 (21,400) 7,476,894 1,248,994 8,620,200 22 23 CONTRACT SERVICES 10,108 (8,092) 111,350 (34,850) 219,000 24 CONSULTING SERVICES 1,424 (9,976) 7,797 (83,403) 137,200 25 LEGAL SERVICES 15,519 (3,081) 133,520 (15,280) 223,600 26 FINANCIAL SERVICES 0 0 30,870 (1,130) 34,400 27 NYS SALES TAX 43,384 2,384 474,778 46,778 595,000 28 REAL ESTATE TAXES 0 0 329,714 18,714 628,700 29 POSTAGE 3,800 (1,400) 35,572 (6,028) 62,400 30 TELEPHONE 10,360 2,760 66,903 6,103 91,200 31 CONSUMER REFUNDS 2,721 (1,479) 36,664 3,064 50,000 32 INSURANCE 0 0 207,962 (17,838) 225,800 33 OTHER OPERATING EXP. 31,043 (11,457) 324,562 (35,438) 612,600 34 Paid to Suppliers & Vendors 118,359 (30,341) 1,759,693 (119,307) 2,879,900 35 36 MATERIALS & SUPPLIES 48,750 (1,450) 210,618 (190,982) 602,400 37 DEBT SERVICE 0 0 0 0 0 38 Contrib. to Depr Fund/Capital Exp. 68,588 (138,512) 77,761 (1,578,339) 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 117,338 (139,962) 288,379 (1,769,321) 3,136,900 43 44 TOTAL CASH EXPENDITURES: 1,140,397 (196,103) 11,671,732 (745,568) 17,772,500 45 46 ENDING FUND BALANCE 7,607,254 7,607,254 1,609,976 4,963,678 47 48 CHANGE IN FUND BALANCE: (122,658) 277,876 (2,365,700) 49 Monthly Change YTD Change 50 DEPRECIATION FUND BALANCE: 1,174,623 3,219 (81,548) 51 LIABILITY & CASUALITY FUND BALANCE: 952,799 0 11,467 52 POST RETIRE. HLTH INS. FUND BALANCE: 1,740,078 6,097 47,667 53 ENERGY EFFICIENCY FUND BALANCE: 72,747 206 (24,626)  Approved by the MEUB on 10/20/2025 Page 11 of 18 MASSENA ELECTRIC DEPARTMENT STATEMENT OF CASH FLOW PERIOD ENDING AUGUST 31, 2025 2024 vs. 2025 MONTH YEAR TO DATE 2024 2025 Difference 2024 2025 Difference 1 OPERATING FUND 2 BEGINNING FUND BALANCE 7,993,244 7,729,912 (263,332) 7,762,534 7,329,378 (433,156) 3 4 CASH RECEIPTS: 5 RECEIPTS FROM CUSTOMERS 975,859 982,541 6,683 9,486,959 11,537,990 2,051,031 6 REIMBURSED WORK 0 7,663 7,663 38,497 232,215 193,719 7 RVRDA CONSULTING FEE 2,500 0 (2,500) 20,000 17,500 (2,500) 8 INTEREST REVENUES 45,488 27,535 (17,953) 266,731 161,903 (104,828) 9 TOTAL CASH RECEIPTS: 1,023,847 1,017,739 (6,108) -1% 9,812,187 11,949,608 2,137,422 22% 10 11 CASH EXPENDITURES: 12 SALARIES & WAGES 312,330 209,647 (102,683) 1,450,054 1,414,832 (35,222) -2% 13 HEALTH INSURANCE 44,751 35,189 (9,562) 350,727 334,231 (16,495) -5% 14 FICA & NYS RETIREMENT 23,954 16,163 (7,791) 343,348 397,704 54,355 15 Salaries & Employee Benefits 381,035 260,999 (120,035) -32% 2,144,129 2,146,767 2,638 0% 16 17 NYPA POWER 159,422 158,229 (1,192) 1,275,414 1,263,105 (12,309) 18 SUPPLEMENTAL POWER 164,414 254,165 89,751 2,056,843 3,762,228 1,705,385 19 ISO/TRANSMISSION 144,865 186,628 41,763 1,418,912 1,958,357 539,445 20 CES 59,140 44,678 (14,462) 527,370 493,204 (34,167) 21 Power & ISO 527,841 643,700 115,859 22% 5,278,540 7,476,894 2,198,354 42% 22 23 CONTRACT SERVICES 7,230 10,108 2,878 136,575 111,350 (25,225) 24 CONSULTING SERVICES 375 1,424 1,049 56,507 7,797 (48,710) 25 LEGAL SERVICES 16,177 15,519 (658) 127,297 133,520 6,223 26 FINANCIAL SERVICES 0 0 0 30,248 30,870 622 27 NYS SALES TAX 44,530 43,384 (1,146) 397,219 474,778 77,559 28 REAL ESTATE TAXES 0 0 0 304,107 329,714 25,607 29 POSTAGE 4,865 3,800 (1,065) 30,501 35,572 5,071 30 TELEPHONE 7,733 10,360 2,626 52,331 66,903 14,572 31 CONSUMER REFUNDS 2,908 2,721 (187) 67,289 36,664 (30,626) 32 INSURANCE 0 0 0 189,041 207,962 18,921 33 OTHER OPERATING EXP. 31,144 31,043 (101) 390,554 324,562 (65,992) 34 Paid to Suppliers & Vendors 114,963 118,359 3,396 3% 1,781,670 1,759,693 (21,977) -1% 35 36 MATERIALS & SUPPLIES 14,491 48,750 34,259 263,813 210,618 (53,195) 37 DEBT SERVICE 0 0 0 0 0 0 38 CONTRIB. to Depr. Fund\Capital Exp. 70,472 68,588 (1,884) 198,205 77,761 (120,444) 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 84,963 117,338 32,375 462,093 288,379 (173,714) 43 44 TOTAL CASH EXPENDITURES: 1,108,802 1,140,397 31,595 3% 9,666,431 11,671,732 2,005,301 21% 45 46 ENDING FUND BALANCE 7,908,289 7,607,254 (301,035) 47 48 CHANGE IN FUND BALANCE: (84,955) (122,658) (37,703) 145,755 277,876 132,121 49 50 DEPRECIATION FUND BALANCE: 864,018 1,174,623 310,605 51 LIABILITY & CASUALITY FUND BALANCE: 929,933 952,799 22,866 52 POST RETIRE. HLTH INS. FUND BALANCE: 1,666,260 1,740,078 73,818 53 ENERGY EFFICIENCY FUND BALANCE: 95,031 72,747 (22,284)  Approved by the MEUB on 10/20/2025 Page 12 of 18 MASSENA ELECTRIC DEPARTMENT 2026_Draft_Budget Draft 9/16/2025 2024 Actual 2025 Budget Projected 2025 2026 Budget % Change % Change 1 REVENUES from Budget Projected 2 RECEIPTS FROM CUSTOMERS $ 13,251,088 $ 15,114,600 $ 15,833,400 $ 15,339,100 3 REIMBURSED PROJECTS 68,294 45,000 245,000 245,000 4 RVRDA CONSULTING FEE 30,000 30,000 30,000 30,000 5 INTEREST INCOME 376,944 217,200 227,500 158,400 6 TOTAL REVENUES $ 13,726,326 $ 15,406,800 $ 16,335,900 6.0% $ 15,772,500 -3.4% 7 8 EXPENDITURES 9 SALARIES & WAGES $ 2,179,050 $ 2,106,000 $ 2,173,600 $ 2,251,600 10 HEALTH INSURANCE 477,587 586,800 500,100 584,900 11 FICA & NYS RETIREMENT 395,898 442,700 437,200 437,200 12 Salaries & Employee Benefits $ 3,052,535 $ 3,135,500 $ 3,110,900 -0.8% $ 3,273,700 5.2% 13 14 NYPA POWER $ 1,907,831 $ 2,003,800 $ 1,882,100 $ 1,948,200 15 INCREMENTAL POWER 2,390,411 3,576,200 4,293,700 3,532,100 16 ISO/TRANSMISSION 2,087,568 2,247,000 2,828,100 2,781,300 17 CES - Clean Energy Standard 754,322 793,200 702,100 758,300 18 Power & ISO $ 7,140,132 $ 8,620,200 $ 9,706,000 12.6% $ 9,019,900 -7.1% 19 20 CONTRACT SERVICES $ 186,012 $ 219,000 $ 274,400 $ 419,000 21 CONSULTING SERVICES 72,570 137,200 140,900 77,200 22 LEGAL SERVICES 192,021 223,600 186,600 183,600 23 FINANCIAL SERVICES 30,248 34,400 33,900 34,400 24 NYS SALES TAX 539,385 595,000 619,000 603,000 25 REAL ESTATE TAXES 615,424 628,700 616,900 627,200 26 POSTAGE 47,713 62,400 62,400 64,800 27 TELEPHONE 78,715 91,200 102,800 105,600 28 CONSUMER REFUNDS 102,623 50,000 175,000 50,000 29 INSURANCE 205,180 225,800 226,500 244,700 30 OTHER OPERATING EXP. 682,069 612,600 595,400 612,600 31 Paid to Suppliers & Vendors $ 2,751,959 $ 2,879,900 $ 3,033,800 5.3% $ 3,022,100 -0.4% 32 33 MATERIALS & SUPPLIES $ 427,104 $ 602,400 $ 542,200 $ 514,800 34 DEBT SERVICE: 35 PRINCIPAL 36 INTEREST 37 Contrib. Depr Fund/Capital Exp 766,079 2,484,500 521,000 4,070,000 38 CONTRIB. TO INS FUND - - - - 39 CONTRIB. to Post Retire. Hlth Ins Fund - - - - 40 ENERGY EFFICIENCY 21,673 50,000 50,000 50,000 41 Utility Investment & Other Activities $ 1,214,856 $ 3,136,900 $ 1,113,200 -64.5% $ 4,634,800 316.3% 42 43 TOTAL EXPENDITURES $ 14,159,482 $ 17,772,500 $ 16,963,900 -4.5% $ 19,950,500 17.6% 44 45 CASH SURPLUS (DEF.) $ (433,156) $ (2,365,700) $ (628,000) $ (4,178,000) 46 47 Operating Fund Balance (12/31) $ 7,329,378 $ 4,963,678 $ 6,701,378 $ 2,523,378  Approved by the MEUB on 10/20/2025 Page 13 of 18 2026_CapitalBudget_DRAFT_2025-9-16 MASSENA ELECTRIC CAPITAL PLAN Revised PROJECT / ITEM 2025 2025 Labor 2025 2025 Labor 2026 2026 Labor Information Technology (IT)Capital Plan Software Upgrade (Billing & Financial) $ 58,000 $ 58,000 $ 40,000 Server/Cyber Security $ 10,000 $ 10,000 $ 10,000 Operations - Equipment Underground Locator $ 6,500 $ 6,500 $ - Mapping Software Upgrade/Cloud Hosting $ 15,000 $ 15,000 System Upgrades Engstrom Breaker Upgrade $ 30,000 $ 550,000 Pole Integrity Testing $ 200,000 Underground Extenstion, T-o Louisville $ 35,000 $ 15,000 $ 35,000 $ 15,000 High Voltage Switches Engstrom $ 90,000 DTT Upgrade Grasse River & Engstrom $ 115,000 $ 7,500 $ 125,000 Re-Conductor Circuit 2303 $ 20,000 $ 10,000 $ 20,000 $ 10,000 AMI - Engineering & Phase I $ 100,000 $ 10,000 $ 100,000 $ 10,000 AMI - Phase II $ 1,600,000 $ 160,000 $ 1,750,000 $ 175,000 2305 Buildout - NYSERDA 5896 $ 1,500,000 CT & PT Upgrade - Grasse River $ 30,000 $ 225,000 Vehicles Bucket Truck/Digger $ 325,000 $ 320,000 $ 750,000 Passenger Vehicle $ 55,000 $ 55,000 Pickup $ 55,000 $ 55,000 Other Property Improvements $ 25,000 $ 25,000 Garage Floor Repair $ 40,000 HVAC Controls Upgrade $ 75,000 Less: Insurance Reimbursement $ (162,000) NYSERDA Grant Reimbursement - 5896 $ (1,200,000) Salvage Value $ (25,000) $ (49,000) $ (30,000) Total $ 2,484,500 $ 195,000 $ 521,000 $ 20,000 $ 4,070,000 $ 190,000 Approved by the MEUB on 10/20/2025 Page 14 of 18 Supplemental Power Purchases I have been struggling on how to present this challenge we have with procuring supplemental power in the winter. This is especially true because of the high prices we saw last winter and the preliminary/indicative pricing we have seen for this winter. To do this, we will first explain how NYPA determines our monthly hydro power allocation. Firm Hydro from NYPA is allocated hourly on a Load Share basis. 1. Load Share is a contractual definition in our NYPA contract. a. Formula – Firm Allocation / Monthly Peak Demand = Load Share % Aug 2025 Load Share = 75% (23,603 / 31,559) b. Load Share % is not known until the end of the month and NYPA then looks back retroactively to determine hourly Supplemental Energy needs. Hourly Firm Hydro Allocation = Hourly kW x Load Share % 25,000 x 75% = 18,750 20,000 x 75% = 15,000 Hourly Supplemental = Hourly kWh – Firm Hydro Allocated 25,000 – 18,750 = 6,250 Supplemental 25,000 – 15,000 = 5,000 Supplemental c. If Load Share is less than 100%, then each hour the kW is below the peak Massena is buying Supplemental Energy 2. Load Share % is typically at its highest during the shoulder months (Oct, April and May) and lowest during the winter months (Dec, Jan and Feb). a. May 2025 Load Share = 98.5% (23,603 / 23,859) b. Feb 2025 Load Share = 53% (23,603 / 44,307) Approved by the MEUB on 10/20/2025 Page 15 of 18 Price certainty through forward contracts 1. When we left NYMPA in 2019 we worked with NYPA to create the option of locking in some of our expected usage with a 3rd party supplier. 2. In February 2023 we tried to dip our toe in the water with forward contracts and lock in some of our expected energy needs at a known price. At that time, we purchased 5MW for each hour in the month of February at $52. 3. In the beginning of February our Peak hit 47,017 MW during a cold stretch, putting our Load Share at 50%. The price of power was also very high to start the month, and we felt very good about the forward price contract one week into the month. 4. Subsequently, the temperatures and energy prices moderated in February. 5. For the month of February, the average price of power was 35.19 and we locked in 5 MW at $52. What we more fully understood after the experience in 2023 was that: a. in the peak hours the 5MW block that we purchased was not sufficient to cover our needs and we still had to buy supplemental power. During the peak hour when we hit 47 MW, we received 23.6 MW from NYPA. We had a price locked in for the next 5MW at 52 but still had 19 MW we had to purchase from the market. b. As the temperatures, prices and demand moderated throughout the month, the average price of power was well below the $52/MWh we had locked in. c. As a result of the lower prices, the exercise cost us $71,600. d. The exercise also showed we were vulnerable to having hours where actual usage was so low that our supplemental needs were below 5 MW. The cold temperatures at the start of the month caused a high demand and poor Load Share %. A lower peak would have increased our hourly NYPA allocation and exposed us to hours where the supplemental requirement was below 5 MW. 6. We have continued to explore each year whether locking in forward prices could be beneficial. The actual prices in each of these years ended up as follows. Offered in fall Actual Jan/Feb ’22 $61/MW $99/MW Jan, $64 Feb Feb ‘23 $52* accepted $35.20 Jan/Feb ‘24 $63/MW $51/MW Jan, $27 Feb Jan/Feb ‘25 $71/MW $97/MW Feb, $88 Feb Jan/Feb ‘26 $71/MW TBD Approved by the MEUB on 10/20/2025 Page 16 of 18 7. This year, the prices we have thus far been offered are in the 70’s. The price offered will vary throughout the year. What I have shown in the “offered” column is the best of the offered prices NYPA has made us aware of. The best offer for the winter heating months is typically early fall. 8. I have attached the two most recent exchanges on pricing that I received from NYPA for January and February of 2026. To be clear, what NYPA has offered in their proposal is not NYPA power. Rather, NYPA is going to power suppliers or power marketers to get their best offer for next winter. 9. I am also waiting for a proposal from NextEra for this winter. They will likely provide two offers a. A similar block to what NYPA is offering. This is typically higher than the NYPA offer on a block of power. b. NextEra will also offer a full Requirements product. A full requirements contract would eliminate some of the problems I discussed above. However, NextEra understands our NYPA contract and the volatility of our need. As a result, they have historically offered very high prices for this product. We’ll see where their proposal comes in. 10. Obviously, we got complaints from customers through last winter and Spring because of high PPAC. We also got complaints from customers in 2023 after we used the hedge. Some customers are always going to complain. However, in 2023 some customers noted that after a mild month, the prices were surprisingly high. They were surprisingly high because we had to pass along the loss incurred on the hedge over a lower number of kWh sold. Approved by the MEUB on 10/20/2025 Page 17 of 18 This is email from September on pricing. Hey Andy, High level we’ve seen Zone D continue to relax. Mondays pricing for Jan/Feb26 was $69.71, so down ~$8.25 since our prior august email. I’ll collect some more thoughts and send them your way later. -Barnett Approved by the MEUB on 10/20/2025 Page 18 of 18 This is email from August on Pricing. Hey Andy, Yesterdays settled Zone D marks indicate $77.45 for Jan/Feb26. I’ve also included the next 12 months of forwards for Zone D. We’ve seen near-term (fall) prices relax on milder weather forecasts but have not seen winter trending downward significantly. Best, Barnett