Sustainability, Energy, & Resiliency Committee

Meeting Minutes - FINAL May 16, 2018 – 6:30PM City Hall – 93 Washington Street Attendance: Lisa Rosenthal, Jeff Cohen, Chris Cantone, Jenna Ide Not in Attendance: Gail Kubik, Jeff-Barz Snell, Rick Nye, John Hayes Public Attendance: Robert Gisolfi, Charlotte Diogo 1. The committee agreed to meet on the 4th Wednesday of every month, at least for the next three months. Jenna will reserve a conference room in the City Hall Annex. 2. Project Updates:  The Bertram Field project is working on getting funding to move projects forward (there is water dripping through light fixtures, paint peeling off the walls, etc.)  The PV project is stalled until the roof is fixed.  The Forest River project is still exploring siting options.  Salerno project grant applications are submitted to DOER to support rooftop units/radiant heating. New facilities director Ryan Monks is interested in LEED, energy-efficiency upgrades. SERC would like to invite him to a future meeting. 3. Chris asked about the status of the letter to Mayor Driscoll re: interns. Committee members should call the Mayor’s office to follow up this week before the City Council votes on the budget next week. 4. Jeff C. met with Elaine Milo, who is the chair of the Public Health, Safety and Environment Committee, which has not yet met this year. Elaine is committed to putting us on the agenda when they do meet. 5. Constellation Presentation: Two representatives from Constellation presented to SERC members about various options for the City’s procurement of energy, including the Energy-Efficiency Made Easy program and the MMA Contract. Salem is currently under a Constellation contract, which is valid through December 2018, for its electricity source. The City has a municipal power extension through the year 2021. On the City’s utility bill, we are currently paying 7 ½ cents per KwH (VERY low) in one bill. December 2018 through December 2021 is 7.008 cents per KwH plus capacity costs, bringing it to about 9-10 cents, and will be in two bills per account. We might be able to flip to a fixed price, but this decision would need to be made in a few months, before December 2018. The MMA Contract is specifically for municipalities. Some benefits of the MMA contract include: -Can add or delete accounts without penalty -No bandwidth/penalty for variations in usage -Ability to add solar, wind and other co-generation -Green RECs Incentive Program – will “green up” City Hall with 1004 RECs at no costs Different strategies to get us to a fixed price: Flexible Solutions: As load shifts, so does the percentage change. The City would choose when and how much to lock in. The City can set a goal (e.g. 9 cents per KwH) and watch the market to try and lock in that rate. Blended extension: A shift towards MMA might be possible from Dec 18 – Dec 23. Jenna should e-mail Constellation to get exact pricing. EME Program: This would be an addendum to the standard contract. Essentially, it is a loan to cover anything relating to energy (HVAC systems, refrigeration, lighting, controls, etc.) Rates are between 4-7%. There are three possible methods for setting up the EME program: 1) Through a vendor channel partner. In this scenario, Constellation is just paying for the equipment. The City would handle installation. We take ownership at the beginning, no lien on equipment. 2) Vendor contracts with Salem for installation contract directly, and Salem has a product contract with Constellation, who, in turn, has a contract with the vendor. 3) Contract is between Constellation and Salem. The vendor is a subcontractor, working for Constellation, providing services and installation. Constellation manages the project from beginning to end. Constellation will choose a channel partner (subcontractor) to do rebate/savings analysis. Constellation vets everything with their engineering team. EME (Efficiency Made Easy) is a fixed cost every month. 1 cent increase could allow us to do $500,000 worth of work over 5 years, which would extend our contract out to 2023. This could be off-set if we do a blended extend. Constellation did the EME program with the town of Essex, if SERC wants to connect with City officials there for a reference. Meeting adjourned at 8:51pm. Minutes respectfully submitted by Lisa K. Rosenthal.