CT Municipal Electric Energy Cooperative CMEEC

SUBJECT TO BOARD APPROVAL MINUTES OF THE REGULAR MEETING OF THE BOARDS OF DIRECTORS OF CONNECTICUT MUNICIPAL ELECTRIC ENERGY COOPERATIVE AND CONNECTICUT TRANSMISSION MUNICIPAL ELECTRIC ENERGY COOPERATIVE April 27, 2023 The Regular Meeting of the Boards of Directors of Connecticut Municipal Electric Energy Cooperative (“CMEEC”) and Connecticut Transmission Municipal Electric Energy Cooperative (“CTMEEC” dba Transco) was held on Thursday, April 27, 2023, in person at the Madison Beach Hotel, 94 West Wharf Road, Madison, CT and via Zoom at 10:00 a.m. The meeting was legally noticed in compliance with Connecticut General Statutes and all proceedings and actions thereafter recorded occurred during the publicly open portions of the meeting. The following Member Representatives / Alternate Member Representatives / Municipal Representatives participated: Groton Utilities: Ronald Gaudet, Jeffrey Godley Groton Municipal Representative: Mark Oefinger Norwich Public Utilities: Christopher LaRose, Stewart Peil, Robert Staley Norwich Municipal Representative: David Eggleston Bozrah Light & Power: Seymour Adelman, William Ballinger, Scott Barber South Norwalk Electric & Water: Alan Huth, David Westmoreland Third Taxing District, East Norwalk: Kevin Barber, Pete Johnson, Michele Sweeney Jewett City Department of Public Utilities: Louis Demicco, Kenneth Sullivan Jewett City Municipal Representative: George Kennedy The following CMEEC Staff participated: Shadaya Bransford, CMEEC Accounts Payable Accountant William Butts, CMEEC Business Intelligence Developer Bella Chernovitsky, CMEEC Director of Business Intelligence Michael Cyr, CMEEC Director of Portfolio Management Candice DiVita, CMEEC Financial Analyst Richard Gaudet, CMEEC Modeling and Performance Analyst Margaret Job, CMEEC Paralegal and Compliance Specialist Lena Kabanova, CMEEC Principal Operations Analyst Ellen Kachmar, CMEEC Office & Facility Manager Michael Leep, CMEEC Field Technician/Operator Yuxin Liu, CMEEC Utility Business Analyst The following CMEEC Staff participated: Pulat Matyakubov, CMEEC Senior Application Programmer Patricia Meek, CMEEC Director of Finance & Accounting Dave Meisinger, CMEEC CEO Joanne Menard, CMEEC Controller Hao Ni, CMEEC Asset Performance Manager Ginger Palmer, CMEEC Cyber Systems & Security Manager Michael Rall, CMEEC Director of Asset Management Walter Szymanski, CMEEC Conservation & Load Management Specialist Gabriel Stern, CMEEC Director of Technical Services Menglu Tang, CMEEC Energy Market Analyst Robin Wang, CMEEC Business Intelligence Analyst Leslie Williams, CMEEC Principal Billing & Accountant Heidi Winnick, CMEEC Financial & Treasury Analyst Others participated: Jillian Jurczyk, Utility Financial Solutions, LLC Michael Johnson, Utility Financial Solutions, LLC Mark Beauchamp, Utility Financial Solutions, LLC Aaron Brooks, Groton Utilities Yi Xiang, Groton Utilities Laura Huren, Norwich Public Utilities Steve Sinko, Norwich Public Utilities David Silverstone, Esquire, Municipal Electric Consumer Advocate Ms. Job recorded. Chair Kevin Barber called the meeting to order at 10:02 a.m. He stated for the record that today’s meeting is being held at the Madison Beach Hotel in Madison, CT and via Zoom. Chair Barber explained that the usual order of the Board Agenda has been edited to allow for two presentations to immediately follow the Dashboard, Project Portfolio and Energy Market reports. He added that this was done to accommodate questions and answers following each of the two presentations on today’s Agenda. He noted that should the need arise, he will request a motion to table certain remaining agenda items in the interest of time. Specific Agenda Item A Public Comment No public comment was made. B Roll Call / Voting Roster Ms. Job conducted roll call identifying voting persons at today’s meeting. Chair Barber confirmed a quorum was present. C Approve the Minutes of the Regular March 23, 2023 Joint Boards of Directors’ Meeting A motion was made by Municipal Representative Pete Johnson, seconded by Municipal Representative Mark Oefinger to Approve the Minutes of the Regular March 23, 2023 Joint Boards of Directors’ Meeting. Motion passed unanimously. 23-04-01 D March 2023 Master Dashboard Mr. Meisinger welcomed the Board, speakers and CMEEC staff to the meeting, noting that today’s agenda was created to allow for maximum discussion for the presentations and encouraged those present to ask questions. Mr. Meisinger then explained that Member Power Cost with Member Return came in at $5/MWh above budget, with year-end projection still at $118/MWh versus the target of $120/MWh. Regional Competitiveness came in at 47% compared to the target of 22%, with projected year end at 34% versus the original target of 21%. Mr. Meisinger cited volatility in the forward and spot energy prices, mitigated by solid hedging practices and higher EDC rates during the first half of 2023 as key factors. E March 2023 Project Portfolio Mr. Rall provided a high-level review of results for March explaining that the Project portfolio was below budget due to lower than budgeted Locational Market Prices during project operation which primarily affected Subase Fuel Cell and Community Solar Garden. He added that Hydro Quebec net benefit was higher than budgeted due to lower than budgeted support payment expenses. F March 2023 Energy Market Update Mr. Cyr provided a high-level overview of the Energy Market Analysis for March, highlighting the results of the previous month and how they were impacted by Load, Energy Costs, weather, Natural Gas Costs, and Oil Costs. Mr. Cyr then explained the mitigating actions taken to remain in compliance with the Enterprise Risk Management Policy.  Mr. Cyr then led discussion on volatility expectations for the coming summer and winter months. G Informative Presentations and Discussions • Climate Change from a Data, Utility and Risk Lens – Richard Gaudet • Utility Rate Structures – Jillian Jurczyk, UFS, LLC Mr. Meisinger explained that the first presentation addresses the evolving impacts of climate change on the volatility associated with load forecasting and related matters such as hedging and the purchase of power. He further explained that an early version of the first presentation was presented to the Risk Management Committee in January. Mr. Meisinger further explained that the second presentation will be a discussion on structuring rates into the future and the impact on Member Utilities when designing their rates. The Board and others in attendance asked questions of the presenters during and after their presentations. Both presentations were well received. H Discussion and Possible Vote to Authorize Execution and Assignment of MicroGrid Grant Contract Mr. Rall provided a history of the MicroGrid Grant with CT DEEP explaining that in January 2018, CMEEC applied for a microgrid grant with the CT DEEP. Notice was subsequently received in April 2019 from CT DEEP that CMEEC’s project was selected. CMEEC submitted the application in coordination with the US Navy for a project at the Subase. He noted that that the microgrid project is separate from the fuel cell project and associated lease on the subase. Mr. Rall explained that after learning that the Subase was going to replace their existing on-base generation with new units which were to be installed by Noresco, substantially changing the scope and content of the grant application, CMEEC proposed that Noresco take on the grant contract. A revised grant application addressing this was submitted to CT DEEP in August 2022 and approved in March 2023. CT DEEP reviewed and approved the assignment of the Grant to Noresco in its current form. Mr. Rall stated that all rights, duties, and obligations under the grant will be assigned to Noresco, leaving CMEEC with no obligations. Mr. Rall then explained next steps including obtaining Board approval to sign and then assign the grant contract allowing execution by CMEEC and CT DEEP. At this time, Chair Barber entertained a motion to approve the execution and assignment of the grant contract as discussed. A motion was made by Municipal Representative Oefinger, seconded by Municipal Representative Johnson to approve the CMEEC CEO to sign the grant contract and  the assignment of the grant contract to Noresco under the terms and conditions substantially similar to those presented at today’s meeting, with the CEO having discretion to agree to further changes to such terms and conditions, with any material changes being approved by counsel. Motion passed unanimously. 23-04-02 At this time and in the interest of time, Chair Barber entertained a motion to table Agenda Items I through N. A motion was made by Member Representative Ronald Gaudet, seconded by Member Representative Scott Barber to table Agenda Items I through N. Motion passed unanimously. 23-04-03 O Adjourn A motion was made by Member Representative Scott Barber, seconded by Municipal Representative Johnson to adjourn. Motion passed unanimously. 23-04-04 The meeting was adjourned at 12:28 p.m.