The Board meets on the first and third Monday of each month. Meetings begin at 1:00 p.m. and are held in the department conference room at 65 Lafayette Ave, Littleton. Board meetings are open to the public and time is allotted for public comments at each meeting.
The regularly scheduled Board of Commissioners (BOC) meeting began at 1:00 p.m. on Monday, October 21, 2019 in the Littleton Water and Light (LWL) conference room. Present were Commissioner Peter Cooper, Commissioner Schuyler Sweet, Commissioner Ralph Ross, Financial Director Cheryl Wilkins and Superintendent Thomas Considine.
The minutes of the October 7, 2019 regularly scheduled Commissioners meeting were reviewed. Commissioner Sweet made a motion to accept the minutes as presented, seconded by Commissioner Ross.
The vote was in favor of the motion 3-0-0
1. Mr. Craig Dwyer, Director of Utility Markets for Green Street Power Partners discussed a proposed utility scale solar array with the BOC. The proposed site is located off Mann’s Hill Road and the preliminary agreement (Term Sheet) is based on interconnecting an 8 MW array. At this connected capacity it is estimated that the array will provide about fifteen (15) to twenty (20) percent of LWL’s base load requirements and could potentially trim system demand. If LWL was in agreement the term sheet could be executed directly locking in both parties. Green Street would like to get the project in-service sometime in 2020.
Mr. Considine stated that locking about fifteen (15) to twenty (20) percent of LWL’s base load would require some sort of a production guarantee provided by Green Street. Without the guarantee LWL would be assuming some risk on the spot market if the array was not operating as proposed.
Mr. Dwyer stated that this could be worked out in the purchase power agreement along with the final price per MW.
Following some additional discussion with regard to the proposed term sheet the BOC agreed that they would likely provide Mr. Dwyer with some follow up questions to be addressed.
Mr. Dwyer thanked the BOC for their time and departed the meeting at about 1:45 p.m.
2. Mr. Stan Faryniarz, the Principal Consultant for Daymark Energy Advisors, discussed the estimated economic impact with regard to LWL establishing a 115 KV interconnection to the Eversource U-199 transmission line.
Mr. Faryniarz stated that several financial assumptions needed to be used in preparing the information presented as it was proprietary and unavailable. Considering the financial data and other information that Eversource Energy provided in our April 2019 meeting there is no financial advantage to LWL to move forward with the project unless they (Eversource) are willing to capitulate on several key factors.
Projecting the 20-year cost the Net present Value (NPV) as proposed is as follows: Option 1 - Eversource finances the entire project at their proposed carrying charge (18%) the NPV is estimated at about $11.2 million, Option 2 – If Eversource agrees to finance the project at a more realistic carry charge (say 8.95%) the NPV is estimated at about $4.4 million and Option 3 – LWL bonds for the entire project the NPV is estimated at about $2.7 million. Mr. Faryniarz stated that further research is needed on several key issues before the final construction costs can be refined.
No action was taken by the BOC in regard to this topic.
3. Mr. Faryniarz proceeded to review the pending wholesale power supply energy procurement for 2021-2023 with the BOC. The forward energy prices in New England were discussed and are expected to be very favorable for LWL to strike a deal at about $40/Mw. In the next few weeks Daymark on behalf of LWL will notice prospective counterparties that LWL will be soliciting bids for future energy resources for 2021 through 2023 and for them to expect an RFP.
Following some additional discussion relative to the current energy spot market in New England and the pending procurement Mr. Faryniarz thanked the BOC and departed the meeting at about 2:45 p.m.
FINANCIAL DIRECTORS REPORT:
Mrs. Wilkins reviewed the highlights of the financial statements for the months ended July and August of 2019 with the Commissioners. Several variances as compared to budget were discussed and explained by Mrs. Wilkins.
SUPERINTENDENT/ GENERAL MANAGERS REPORT:
1. The NH Public Utilities Commission recently distributed the proceeds from the Regional Greenhouse Gas Initiative (RGGI) auction number forty-five (45) to LWL for disbursement. Eligible LWL customers will receive a rebate in the amount of about $3.75/1,000 kWh on their November 2019 statement.
2. Cushing Well and Pump is scheduled to conduct a step down water well pump this week at the Lafayette well site. The test data retrieved from well “B” will be used to establish the well’s safe yield capacity and initial water quality as compared to the drinking water standards.
GENERAL/ OTHER BUSINESS:
1. LWL recently received an invoice (No. 100) from the Town of Littleton in regard to the construction costs associated with the installation of lighting fixtures along Phase 1 of the River District Revitalization project in the amount of $154,885. This amount reflects the purchase and installation of twelve (12) decorative LED lamp posts installed along Saranac and Mill Street.
Following some discussion and review of the documentation provided by the town along with the invoice the BOC would like to review a full cost accounting of the project to insure that the available contingency moneys have been spent down.
2. The BOC reviewed and briefly discussed the LED lighting financial analysis with regard to LWL expected return of its investment (payback) following the grant reimbursement by NH Saves.
Mr. Considine stated that thanks go out to Sharon Hampson Administrative Assistance, for her efforts in maintaining accurate records on the LED street lighting conversion project. She was solely responsible for tracking project assets and work flow. She was able to produce a service order for each street that needed the LED upgrade to guide the installation crews and accurately capture the installation data provided by the field crew. Her thoroughness and attention to detail is appreciated as LWL was able to confirm the exact number of fixtures that are installed throughout the town which ensures that the Town of Littleton is being invoiced correctly. A summary of the final project installation data was submitted to NH Saves to satisfy the conditions for disbursement of the grant funds to LWL.
The BOC agreed that the monthly energy quantity (kWh) would not change for the next forty-one (41) months in accordance with the simple payback calculated.
3. Mr. Considine asked the BOC if they had any aversion to LWL replacing the remaining HPS fixture (about 12) on the meter circuits as this would completely replace all the legacy fixtures. The BOC was not opposed to the suggested course of action.
There being no further business to come before the board Commissioner Ross made a motion to adjourn the meeting, seconded by Commissioner Sweet.
The vote was in favor of the motion 3-0-0.
Meeting adjourned at 3:15 p.m.
The regularly scheduled Commissioner’s meeting is held twice monthly on the first and third Monday, at 1:00 p.m., in the Department’s conference room.