OBSERVER CORPS REPORT: Light board sets rates, mulls peak pricing

BOARD: Marblehead Municipal Light Board

DATE: Nov. 21 (hybrid, recorded by video, available on the Light Department website via Vimeo)

LWVM OBSERVER: Steven Levy

MEMBERS IN ATTENDANCE: Simon Frechette, Adam Smith, Lisa Wolf (chair), Michael Hull and General Manager Joe Kowalik

Minutes approved

The meeting was called to order at 4 p.m. The minutes of Sept. 5, both public and executive sessions, were approved.

Recruiting firm retained

An executive recruiting firm is being retained for critical hires. The recruiter will start with the engineering project manager and information systems and technology manager positions. Work will start in December.

Rate changes approved

The January 2024 rate changes were approved. The average residential customer will see a 9% decrease. The energy cost represents about 66% of MMLD expenses. Energy costs in 2023 dropped due to natural gas prices dropping.

MMLD will have a $2 million surplus. The department has two unfilled positions, which reduced expenses. Interest rates went up, so MMLD’s interest income has increased.

Tree trimming complete

The second year of MMLD’s utility tree trimming program has been completed, far ahead of schedule. One tree on Village Street is in the direct path of a main feeder line.

John Fobert, town tree warden, has reviewed the situation and agrees that removal is appropriate in this case. MMLD will compensate that town with new tree plantings, location and tree species to be determined by the tree warden.

Remaining analog meters targeted

The town has had 10,300 digital meters installed throughout town for a decade. About 30 analog residential meters remain due to electromagnetic radiation concerns by residents when the conversion to digital began.

Given data presented by the general manager that:

1. the electromagnetic radiation emitted by digital meters on the outside of a house is significantly less than a mobile phone, home wifi network or microwave oven widely used in homes today; and

2. the continued use of analog meters will not allow for certain rate changes now being considered by the board, including demand and time-of-use rates, the board voted 4-0 to eliminate further use of analog meters in 2024.

The department will work with homeowners who would like to shield the area around their meter where it is attached to their homes.

Daily peak pricing

Daily energy usage peaks between 4 and 9 p.m. The cost to the utility during these peaks is much more than normal. Historically, the consumer pays the same no matter what month or time it is. Most Marblehead electric meters today are digital.

MMLD wishes to bill customers for electricity usage that more closely reflects the actual cost. It is believed that this type of billing would encourage consumers to reduce their consumption during peak periods.

MMLD and residents also have the option to install battery electric storage systems to reduce demand during peak usage periods.

The Groton Municipal Light Department is trying out this new “time of use” billing method. MMLD intends to learn from its efforts.

Substation upgrade

Village 13 substation upgrade will begin in the spring. A ground-level “bridge,” designed to protect the force sewer main pipe from heavy loads that will travel on the right-of-way in front of Village 13 in 2024, is being reviewed with the Water and Sewer department and South Essex Sewer District.

A new fence and gates at the department’s main office at 80 Commercial St., including the Hammond Park fence, will be installed beginning in March 2024 and expected to be completed in six to 10 weeks.

Next meeting

The next scheduled regular monthly meeting is planned for 4 p.m., Dec. 19. The meeting was adjourned at 6:15.

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