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, August 01, 2016 in the Littleton Water and Light (LWL) conference room. Present were Commissioner Eddy Moore, Commissioner Perry Goodell, Commissioner Ralph Ross, Financial Director Cheryl Wilkins and Superintendent Thomas Considine.
The minutes of the July 18, 2016 regularly scheduled Commissioners meeting were reviewed. Commissioner Goodell made a motion accept the minutes as presented, seconded by Commissioner Ross.
The vote was in favor of the motion 3-0-0.
Mr. Stan Faryniarz and Mr. Craig Kieny representing Daymark Energy Advisors (formerly La Capra Associates) briefed the BOC with regard to the wholesale market energy outlook and energy procurements process.
Mr. Kieny requested that LWL review the hedge versus target percentages for 2017 Ė 2020 as LWL sales/ loads have dropped since the last procurement. He suggests that the summer months remain at 90% though the winter and shoulder months could be adjusted downward. As there appears to be a large quantity of natural gas in storage spot market prices are not expected to rise dramatically over this period. Lowering the winter hedge will maximize potential benefits of a lower spot market price while maintaining a firm hedge to protect the LWL from any unexpected market swing in price. Daymark suggests that a longer contract term may be appealing as a result of lower market prices and possibly a five (5) term should be included in the RFP.
Mr. Faryniarz discussed the current wholesale energy and capacity markets and the prices outlook over the expected procurement period. The energy market appeared to have bottomed out late last fall as energy prices have increased somewhat though the forward market appears to be stabilized at about $40 per mWh. They expect that no changes will happen in the third quarter and recommends that LWL make a solicitation prior to the end of October. The capacity market that is to go into effect on June 1, 2017 is in a state of flux. ISONE is studying the demand response curve(s) and generator plant closings throughout NE are some of the variables that have not firmly been established.
LWLís current demand costs are $3.25 per kw-Month or annually about $750,000 and this same line item is expected to be about more than double as demand cost per kw-month are expected to be $7.025. The actual peak load measured will determine the actual kw-month charges.
Though LWL has some blended costs as a result of several capacity contracts are in place a significant increase in capacity cost are expected in 2017 and forward years. LWL currently has forward capacity commitments out to 2023 therefore Daymark is not advising LWL to procure additional capacity resources at this time until the market has stabilized.
Mr. Kieny stated that LWL loads are down in 2016 as compared to 2015 and with no new load expected to take the place of what was lost when Hitchiner Manufacturing closed that new resource targets need to be developed. He asked that LWL supply him with our 2016-2017 load forecast so that he can set up the RFPs. Mr. Kieny stated that any drop in resource would most likely affect the peak hours from 8 am to 11 pm as this was the most likely work hours for the plant.
Following some additional discussion Mr. Faryniarz and Mr. Kieny thanked the BOC for their continued patronage and excused themselves from the meeting at about 2 PM.
The BOC agreed that they would review the load data and discuss the timing of the procurement process at a later meeting.
SUPERINTENDENT/ GENERAL MANAGERS REPORT:
1. Pittsburg Tank is planning to inspect the Mt. Eustis water tank on August 8, 2016 to complete the inspection that began in February. As a result of mechanical failure they could not complete the ROV underwater visual inspection of the 1.5 MGal water tank. Pittsbury Tank has been less than forthcoming with regard to their equipment failure and submitted the written report based on partial data. An LWL operator was on site and observed the failure of the ROV after only a short time underwater, therefore LWL insisted that a complete inspection be conducted in accordance with the agreement.
2. The School Street sanitary line replacement project hit a major snag last week and work on the project for all intent stopped. The sewer and water lines diverged as a result of ledge outcropping near the end of the street near the water tank. This feature though highlighted by LWL was missed by the onsite engineer that insisted that the route as detailed on the plans be followed. As a result of the diverging lines the water main was damaged several times compromising the integrity of the potable system. LWL considers this damage to be totally preventable. A minor alignment change to the sewer main could have been made that would have protected the integrity of the water main throughout this area.
LWL met with the contractor and it was agreed in order to keep the project moving that LWL would allow the contractor to relocate the water main in this section. It was too late to move the sewer line due to the ledge depth in reference to the finish grade made it impracticable to choose an alternate route as this time. LWL agreed to provide the contractor with the needed materials to relocate the water main and install the service laterals. The materials for the temporary water service were provided by the contractor.
LWL provided the materials associated with relocating about 300 feet of water main, four (4) service laterals and labor (2 men) for several days. Total project costs have not been tallied to date though LWL plans to capitalize the entire project cost.
3. Water samples will be collected form the Littleton Schools this month and analyzed for lead in accordance with the Lead and Copper Rule of the Safe Water Drinking Act.
4. The NHDES advised LWL and other public water systems under 10,000 people that they would like them to voluntarily collect source water samples. The water samples would be analyzed for Perfluorooctanoic acid (PFOA) and Perfluorooctane sulfonate (PFOS) due to these emerging contamination issues in the southern part of the state. As a direct result of LWL participating with the EPA in the Unregulated Contaminant Monitoring Regulations (UCMR) in 2014 the PFOA and PFOS samples were collected and analyzed. As a result in LWL involvement with UCMR3 program no further sampling is required at this time. The results of the 2014 analysis found no detectable limit for both contaminates in either source.
5. The NHDES advised LWL that the water system will be inspected on Monday, August 22nd in accordance with NHDES Administrative Rules governing the operations of a public drinking water system. The inspection will begin with a review of the paper work, master plan and operatorís site logs then proceed toward the intake.
6. Truck 501 was brought back to the garage due to a hydraulic leak. It was determined that the hydraulic reservoir has rusted through and needs to be replaced and deadlines the truck. Truck 501 is due to be traded as soon as the replacement vehicle already in production is ready. Several weeks will be required to return this vehicle to service which places the LWL in jeopardy relying on one (1) bucket truck for storm trouble. This could potentially delay restoration work in the event of a sustained outage. A lease service truck is available to supplement LWL rolling fleet until truck 501 is placed back in service at a cost of $2,400 per month.
The BOC agreed that the department needs to be prepared in the event of a wide spread outage where several trucks would be required and authorized the leasing of a rental service truck in the interim.
GENERAL/ OTHER BUSINESS:
The BOC reviewed and briefly discussed a memorandum received by LWL energy attorney. The memorandum outlined the potential implication of wheeling wholesale solar power through LWL to the grid and NHPUC jurisdiction that may govern future LWL activities. Further delineation is required and the discussion was tabled.
Commissioner Ross made a motion to adjourn the meeting, seconded by
The vote was in favor of the motion 3-0-0.
Meeting adjourned at 2:30 p.m.
The regularly scheduled Commissionerís meeting is held twice monthly on the first and third Monday, at 1:00 p.m., in the Departmentís conference room.