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 19, 2015 in the Littleton Water and Light Department (LWL) conference room. Present were Commissioner Ralph Ross, Commissioner Eddy Moore, Commissioner Perry Goodell, Financial Services Director Cheryl Wilkins and Superintendent Thomas Considine.
The minutes of the October 5, 2015 regularly scheduled Commissioners meeting were reviewed. Commissioner Moore made a motion to accept the minutes as presented, seconded by Commissioner Goodell.
The vote was in favor of the motion 3-0-0.
CUSTOMER & PUBLIC CONCERNS:
On or about November 15th and until March 31st the department will comply with the NHPUC Winter Disconnection Rules (PUC Rule 1204) as they pertain to disconnecting a customer’s water and or electric service for non-payment.
La Capra Associates representatives Mr. Stan Faryniarz and Mr. Craig Kieny attended today’s meeting at the request of the department. The following discussion centered on a renewable power supply, hedging spot market fluctuation, and the wholesale market outlook going forward.
1. The solar proposal submitted by NH Solar Garden was reviewed with the BOC. Mr. Kieny stated that the bid prices proposed were above the current market and for those prices LWL should get all the benefits to include all potential sale of any Renewable Energy Certificates (REC). With the sale of the REC (estimated annual value of more than $1.2 millions) the product may be economically feasible for the department to consider.
2. Mr. Faryniarz stated that a long term renewable energy partnership with a landfill gas generation project (LFG) participant is a more economical project and would have a better return on investment (ROI).
The capacity factors and energy production (output) of a LFG project is 24/7/365 as opposed to a solar project with a projected energy/ capacity rating of about 12-13 percent. A small to mid-sized LFG (say 2 mW) could produce about 16,000 mWh annually as opposed to the same size solar array that would produce about 2,200 mWh. A larger LFG could replace the departments base load power supply requirement and mitigate the majority of the department risk on the spot market.
3. Mr. Kieny stated that due to the drop in the price of natural gas (NG) the department should procure a greater portion of its wholesale power supply requirement for 2017. RFPs should be distributed to prospective supplier within the next several weeks to take advantage of the current market.
Superintendent Considine stated that the BOC authorized (meeting on September 21, 2015) the procurement of about 50% of the project 2017 load. As NG prices are the lowest since 2008 he suggested that a higher percentage be procured under this RFP.
After some discussion the BOC agreed that the solicitation should be increased to about 75 % of the project annual load.
4. Mr. Faryniarz recommended that the department may want to increase its hedged position relative to installed capacity. Currently the department has 9 mW under contract with PSEG Energy but may want to consider hedging to about 15 mW. This recommendation is due in part to recent changes in regard to power generation and the planned closing of additional power plants. As the ISONE next auction is set for February 2016 any planned action by the department would have to take place by mid-January 2016.
The BOC thanked Mr. Faryniarz and Mr. Kieny for their report and they both excused themselves at about 2:00 pm.
SUPERINTENDENT/ GENERAL MANAGERS REPORT:
1. Superintendent Considine stated that Mrs. Wilkins reviewed the recent Stiles (motor vehicle) fuel invoice as suggested by Commissioner Ross with regard to the gas tax. The department has been purchasing its vehicle fuel at the Stile Fuel Riverside Drive pump facility. Though vehicle fuel is normally purchased through the NHDOT pump site on Dells Road, the NHDOT is replacing the underground fuel tanks and the project completion and in-service date is not scheduled.
Mrs. Wilkins stated that in her conversations with representatives from Stiles Fuel the gas tax shown on the department’s itemized invoice is a “pass through” as the department is purchasing at retail. The most interesting fact discovered is that the net cost per gallons of fuel purchased at the Stiles site is twenty (20) cents less than what the State of NH is charging the department for the same product.
2. The installation of the new water main is completed on Maple Street. Final excavation was completed on October 16, 2015 with the installation of a new fire hydrant at the intersection of Oak Hill Avenue and Maple Street. Final paving will be completed upon completion of the town of Littleton’s sewer main replacement project.
Commissioner Moore made a motion to adjourn the meeting, seconded by
The vote was in favor of the motion 3-0-0.
Meeting adjourned at 2:40 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.