PRINCETON MUNICIPAL LIGHT DEPARTMENT
P O BOX 247
168 WORCESTER RD
PRINCETON MA 01541
TEL: 978-464-2815
FAX: 978-464-5377
BOARD OF LIGHT COMMISSIONERS
June 25, 2014
REGULAR MEETING MINUTES
The meeting was called to order at 5:00 PM.
Present were: Chris Conway – Commissioner, Tim Cochrell – Commissioner, Jim Whitman –
Commissioner and Brian Allen – General Manager. Also present was Phyllis Booth.
Agenda:
The Board voted unanimously in favor (2-0) to accept the Agenda as presented.
abstained from the vote.
Commissioner Cochrell
Meeting Minutes:

The Board voted unanimously in favor (2-0) to accept the 05/07/2014 regular meeting minutes as
presented. Commissioner Cochrell abstained from the vote.
2014 Operating Budget Review (Mar & Apr):
The Board reviewed the operating, depreciation and meter deposit bank balances as of June 25, 2014 and
acknowledged that as of June 25th accounts payable totaled $51K and accounts receivable totaled $75K.
The Board reviewed in detail the 2014 PMLD year-to-date working budget document dated 06/23/14. A copy of
the budget was placed on file. There were no major concerns or financial issues to be addressed. The Board
acknowledged that the department is currently within budget.

Payroll/Employee Expenses - Mr. Allen confirmed that no summer help was hired this year and no tree
trimming truck was rented (savings of approximately $18K-$23K). Mr. Allen acknowledged that he is
currently working with the General Foreman to hire the meter reader as a 4 th crewman. Mr. Allen
explained that the department has worked with a 3-man crew for over 6 months. Mr. Allen explained that
the line crew continues to work within Tree Trimming Maintenance Plan and that they are currently
trimming in Cycle 5. On average the line crew will spend one-third of their time on tree trimming, onethird of their time on wind turbines and one-third of their time on line work. The upgrade conversion job
the crew is currently working on is converting the 4800 system on E Princeton Rd/Mirick Rd/Main St to a
7970 system to improve the efficiency of the main distribution line. Once this upgrade project is
complete the town conversion will be at approximately 60% completion. Some hardware can be put back
into stock to be reused but most of the uninsulated conductor cannot be reused. Old transformers within
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the 4800 cannot be reused, but much of the conversion system already has dual transformers in place so
the process is to remove old transformers and convert to the new ones. The conversion will reduce the
trouble calls about flickering lights which is when trees and limbs bounce on and off the 4800 system.
Tree trimming has already been completed to make-ready for the 7970 system which must be clear of
trees and limbs.

Hydro Expenses - The Board discussed the plan for renewal/termination of hydro contracts. Mr. Allen
explained that PMLD manages the billing of hydro power to Holden Light through MMWEC. Mr. Allen
spoke to Luke Wright, manager of the South Barre, Webster, Powder Mill & New Barre hydro plants, and
confirmed that PMLD is locked into the hydro contract until March 2015 because there are no other
parties interested in purchasing the hydro power to allow PMLD to terminate the contract earlier than the
renewal date. Hydro power is approximately 2% of our energy portfolio.
Unfinished Business:

Interconnect Policy – The Board members received a hardcopy of the 33-page “Requirements for
Interconnection of Non-Utility Generators and Distributed Generation” policy (a.k.a. Interconnect Policy)
with proposed changes to specific sections (a copy of the document was placed on file). The Board
acknowledged that the policy was originally written in 2008. Mr. Allen reviewed each proposed change
in detail with Board. Changes made included a cap on total capacity (section 1.0), diagram of the power
generation, transmission and distribution system (section 1.0), net metering (section 1.0), islanding
(section 1.0), 3rd party ownership (section 2.0), billing/fee schedule (section 1.0 and section 5.0) and
metering (section 8.0). There are currently 15 customers with interconnected generation systems (1
business customer with two solar devices in two different locations, 2 state departments with a total of
three solar generators on their buildings and 12 residential solar generating customers). Mr. Allen
confirmed that there are two other known locations in town that may install/construct solar generators.
Mr. Allen explained the current pay-out formula for the excess generation that is produced. The Board
acknowledged that pay-back to customers for their excess generation provides them with a retail rate
credit towards their account of $0.192 per kilowatt (currently excess generation kilowatts are deducted
from the total number of consumed kilowatts and then billed accordingly). These accounts (a total of 17)
require additional maintenance of the database and billing systems in order to track and calculate
adjustments for billing. The Board acknowledged that the energy contract with NextEra enables PMLD
to buy energy under $0.08 per kilowatt and is locked in and that purchasing any excess generation should
not exceed the amount we currently buy from NextEra. The Board acknowledged that PMLD is basically
the battery back-up energy source for homes with solar power generation when the sun is not out or not
producing enough power for their own consumption. The Board also acknowledged that energy produced
behind the meter that is consumed by the customer and does not run through the meter is to the
customer’s benefit and not tracked by PMLD.
Mr. Allen shared the details of the legal opinion he received on how to change the policy and confirmed
that the Board is allowed to change policy through a public meeting and vote by the Board and if service
fees and/or rates are changed then a tariff must be filed with the DPU and a notice of change must be
advertised in a local newspaper. Mr. Allen also shared that MA has no mandates or regulations in place
for municipal light plants in regard to interconnection of non-utility generators and compensation for
excess generation. Mr. Allen shared how some of the other municipals are also addressing solar power
generation in their towns. The Board acknowledged that the original PMLD policy was drafted and
approved in 2008 with no activity until 2010 when 1 customer came online; in 2011 4 customers came
online. A total of 3 came online in 2012 and then in 2013 there was a lot of interest and PMLD had 6
more go live and 1 more so far in 2014. The Board acknowledged the discussion they had with a solar
company representative at their February meeting; and discussed the recent marketing flyers sent to
residents in Princeton advertising our billing and energy rate to sell their solar power generation systems.
The Board acknowledged that the advertisement was an actual customer bill but the dates of 2013 were
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changed to 2014. Mr. Allen shared that he called the solar company and called out the false advertising
of information which they manipulated/changed in 3 places to appeal the urgency of their message and
appear more current. In response to the ad PMLD posted notices on the website and at the office warning
residents that if a product is as good as they claim they shouldn’t have to falsify information to sell it.
The Board discussed two options to consider for net metering to limit and stop the retail rate pay-back on
excess generation –
o
o
Option 1 “PMLD is not a distribution company but a Municipal Light Department.
Massachusetts GL Chapter 164 Section 139 pertains to net metering as it concerns distribution
companies. Therefore, PMLD does not offer a net metering option. PMLD encourages customers
that engage in interconnected generation to size their facilities appropriately to meet their own
demand requirements. PMLD does not offer the option of a customer to “run the meter
backwards”. Customers will be charged full retail rates for all kilowatt hours delivered by
PMLD.”
Option 2 – PMLD is not a distribution company but a Municipal Light Department.
Massachusetts GL Chapter 164 Section 139 pertains to net metering as it concerns distribution
companies. A customer of PMLD with an on-site facility of 60 kilowatts (“KW”) or less in size
may exercise the option to have PMLD purchase their excess generation. The customer will be
charged at the full retail rate for all KW consumed and receive a credit on their bill, as a
separate line item, (or payment if the situation warrants) for excess generation. Excess
generation will be paid at the previous month’s average monthly market price per KILOWATTS
up to and not to exceed $0.075 per KILOWATTS. A customer exercising this option will also be
charged a meter charge of $12.95 per month (as opposed to the usual $8.95 per month) for
increased costs of meter reading and administrative tasks involved in the billing process.
The Board acknowledged that both options do not stop homeowners from purchasing their own energy
generation equipment (solar panels, fixed fuel cells, diesel generators, wind turbines, micro turbines, or
any future invention), but rather it protects the ratepayers as a whole from paying PMLD retail rate for
generation the solar power generators are giving back to PMLD on the grid. Addressing the policy now
for 17 accounts is prudent and fiscally responsible to protect the best interest of the other 1450 PMLD
customers/ratepayers and the future of the business in the event power generation, like solar, is installed
by more PMLD customers in the future. The Board reviewed the history of a customer’s consumption
and generation to compare actual revenue losses year-to-date and for each proposed option.
Mr. Allen explained that inquiries received by the department about how solar power generation would
work for residents of Princeton have always included the recommendation to size a system appropriately
to meet the needs of the home. The Board acknowledged that PMLD cannot afford to pay the retail rate
($0.192) for excess generation because that rate exceeds the purchase rates PMLD is locked in with
NextEra. The legal opinion also confirmed that grandfathering any existing power generation systems is
not required therefore the policy change would apply to all customers existing and new.
Mr. Allen shared his recommendation to go with option 1 over option 2 because it the cleanest change
and ends the pay-out of PMLD ratepayer money, reduces the administrative tasks in-house and places the
responsibility on the interconnect energy generation customers to manage their system to meet their own
needs and/or purchase battery back-up equipment to store their excess generation and not make money off
the department at the retail rate. Commissioner Whitman made a motion to accept the June 25, 2014
recommendations presented by the PMLD General Manager, Brian Allen, for revisions to the June 2008
PMLD Policy “Requirements for Interconnection of Non-Utility Generators and Distributed Generation;
and approve the Option 1 revisions within the policy that relate to net metering, billing and 3 rd party
ownership as discussed. Commissioner Conway seconded the motion. All were in favor (2-0).
Commissioner Cochrell abstained from the vote.

Clean Energy Center (CEC) Wind REC Update – Mr. Allen recapped the events of the meeting he and
Commissioner Whitman and Commissioner Conway had with the CEC. He stated that they agreed to
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work with PMLD. Mr. Allen shared that after the meeting he sent a letter to Senator Chandler about their
meeting with the CEC and the Wind REC discussion. Senator Chandler notified Mr. Allen that an
amendment was filed with the Senate budget to provide provisions for the CEC to work with PMLD in
regard to a Wind REC purchase plan up to $2M. Mr. Allen confirmed that the budget and this
amendment did pass at the Senate level and that it is currently under the House review which has a
deadline of July 1, 2014. At this time there is no opposition to the amendment and Mr. Allen was told
that the CEC would call him if/when they can work with PMLD to purchase Wind RECs. This advance
sale of Wind RECs will support the department’s goal to improve cashflow and rebuild the depreciation
account for capital improvement.

Wind Turbines Update – Mr. Allen shared that wind production is low, which is normal for this time of
year. Capacity is at 15% - down from the original projection of 20%.

Next Meeting – The Board agreed not to meet in July due to scheduling and availability. The Board’s
next meeting will be scheduled for August 13, 2014 at 5:00 PM.
At 6:16 PM the Board voted unanimously in favor (2-0) to adjourn. Commissioner Cochrell abstained
from the vote.
Respectfully Submitted,
Christine Trudeau
Recording Secretary
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