CT Municipal Electric Energy Cooperative CMEEC

MINUTES OF THE REGULAR HYBRID MEETING OF THE JOINT BUDGET AND FINANCE COMMITTEE OF THE BOARDS OF DIRECTORS OF CONNECTICUT MUNICIPAL ELECTRIC ENERGY COOPERATIVE AND CONNECTICUT TRANSMISSION MUNICIPAL ELECTRIC ENERGY COOPERATIVE September 27, 2024 A Regular Hybrid Meeting of the Joint Budget and Finance Committee of the Boards of Directors of Connecticut Municipal Electric Energy Cooperative (“CMEEC”) and Connecticut Transmission Municipal Electric Energy Cooperative (“CTMEEC” dba Transco) was held in person at 30 Stott Avenue, Norwich, CT and via Zoom on Friday, September 27, 2024 at 10:00 a.m. The meeting was legally noticed in compliance with Connecticut General Statutes and all proceedings and all actions hereafter recorded occurred during the publicly open portions of the meeting. The following Committee Members participated via Zoom: Bozrah Light & Power: William Ballinger Groton Utilities: Ronald Gaudet, Yi Xiang (Non-Board Committee Member) Groton Municipal Representative: Mark Oefinger Norwich Public Utilities: Christopher LaRose, Robert Staley Norwich Municipal Representative: David Eggleston Third Taxing District, East Norwalk: Kevin Barber East Norwalk Municipal Representative: Pete Johnson The following Non-Voting Members participated via Zoom: Jewett City Department of Public Utilities: Louis Demicco, James DeRusha Jewett City Municipal Representative: George Kennedy South Norwalk Electric & Water: Alan Huth, Scott Murphy South Norwalk Municipal Representative: Dawn DelGreco The following CMEEC Staff participated in person unless otherwise noted: Dave Meisinger, CMEEC CEO Patricia Meek, CMEEC Director of Finance & Accounting Joanne Menard, CMEEC Controller Candice DiVita, CMEEC Financial Analyst The following CMEEC Staff participated in person unless otherwise noted (Cont’d): Heidi Winnick, CMEEC Financial Treasury Analyst Leslie Williams, Principal Accountant (via Zoom) Hao Ni, CMEEC Asset Performance Manager Margaret Job, CMEEC Director of Administrative Services Lauren Gaudet, CMEEC Administrative & Sustainability Specialist Chantal Maxwell, CMEEC Administrative Services Coordinator Others participated via Zoom: David Silverstone, Esquire, Municipal Electric Consumer Advocate Ms. Gaudet recorded. Committee Chair Christopher LaRose called the meeting to order at 10:00 am noting for the record that today’s meeting is being held in person at 30 Stott Avenue, Norwich, CT and via Zoom. He explained that participants should keep their device on mute unless speaking to eliminate background noise and state their name when speaking for clarity of the record. Specific Agenda Item A Public Comment Period No public comment was made. B Roll Call Ms. Gaudet conducted roll call. Committee Chair LaRose confirmed a quorum of the Committee was present. C Approve Minutes of the September 13, 2024 Regular Hybrid Meeting of the CMEEC / CTMEEC Joint Budget & Finance Committee A motion was made by Committee Member Staley, seconded by Committee Member Johnson to Approve the Minutes of the September 13, 2024 Regular Hybrid Meeting of the CMEEC / CTMEEC Joint Budget & Finance Committee. Motion passed unanimously. D Review Proposed 2025 Transco Budget Ms. Meek guided the Committee through the Proposed 2025 Transco Budget and 2026- 2029 Forecast. She began by providing a synopsis of Transco that included an explanation of Transmission Project #1, MEU Transmission, and CMEEC Transmission and how each of those components are handled in the budget.  Ms. Meek then delved deeper into each section of the Proposed 2025 Transco Budget. She noted that Transmission Project #1 is budgeted to have a net income of $2,723,490, which is 41% higher than the 2024 Approved Budget, that MEU Transmission Revenue is budgeted to be 39% higher than the 2024 Approved Budget, and that the transmission expenses that are passed from Transco to CMEEC are budgeted to be 16% higher than the 2024 Approved Budget. Ms. Meek described the budget highlights and details for each of these elements before moving on to a review of the Five-Year Forecast. She emphasized that the 2026-2029 Forecast figures for each line item are only changed from the 2025 budgeted amount if there is knowledge that there will be an increasing or decreasing trend for that line item. Ms. Meek subsequently discussed the next steps for the Proposed 2025 Transco Budget. She noted that the Committee has not requested any changes to the information presented at this meeting and that the Proposed 2025 Transco Budget will be reviewed again at the October 11, 2024 meeting of the Committee before being voted on at the October Board meeting. Ms. Meek explained that pursuant to Section 6.2 of the Transmission Financing and Service Agreement between CMEEC and Transco, the Transco Budget needs to be prepared at least sixty (60) days prior to the beginning of each year and should be approved by the Transco Board of Directors in advance of its consolidation into the CMEEC Budget. She then addressed the key assumptions that were used to create the Proposed 2025 Transco Budget. Ms. Meek next provided a summary of the Participating Transmission Owners Administrative Committee (PTO-AC) Rates Working Group’s presentation of the 2025 Schedule 9 (RNS) Rate and Five-Year Forecast. E Review Proposed 2025 CMEEC Budget for Non-Fuel Operating Expenses Ms. Meek explained that Non-Fuel Operating (NFO) Expenses are a grouping of CMEEC expenses that are, at least to some extent, controllable by CMEEC. She added that these expenses are not driven by the energy market or by regulation and provided a couple of examples of NFO Expenses. She also stated that while CMEEC is not FERC jurisdictional, the FERC Uniform System of Accounts is taken into consideration in CMEEC accounting practices. Ms. Meek then presented the highlights of the Proposed 2025 CMEEC NFO Budget, stating that the total NFO is 1% below the 2024 Approved Budget, and underscored the expense categories driving the difference. She continued by walking the Committee through the details of each of the expense categories that make up the Proposed 2025 CMEEC NFO Budget and addressed questions along the way. Ms. Meek concluded her presentation with a review of the NFO allocations to CMEEC projects and other cost centers and the Five-Year Forecast for the CMEEC NFO. F New Business There was no new business. G Adjourn A motion was made by Committee Member Barber, seconded by Committee Member Eggleston to adjourn. Motion passed unanimously. The meeting was adjourned at 11:42 a.m.