UTILITY COMMITTEE

The Utility Committee Meeting was held on March 9, 2009 at 5:00 p.m. with Chairman Ruane presiding. Members present were Mr. McGiffin, Mrs. Williams (arrived at 5:14 p.m.), Major Kosior, and Mr. Snaman. Council President Hogan and Mayor Carey were also present.

AGENDA ADDITIONS/DELETIONS

Mr. McGiffin moved for approval of the agenda, seconded by Major Kosior and unanimously carried.

Federal Stimulus Program and Dover’s Utilities and Energy Programs

Members were provided information received from the United States Conference of Mayors which summarizes all aspects of the Federal Stimulus Program. Mr. DePrima reviewed the City’s utilities and energy programs, as follows:

Water/Wastewater

Mr. DePrima provided members with a list of the City’s Water/Wastewater Infrastructure Improvement Projects that were submitted to the State of Delaware, which total more than $14M. He noted that the Federal Stimulus Program includes a Clean Water State Revolving Fund ($4B) and Safe Drinking Water Revolving Fund ($2B). Unfortunately, he advised members that the City’s water projects will not be beneficiaries of the stimulus funds; however, it allows for other State Revolving Funds to be made available to allow the City to be better positioned for acquiring a low interest loan, which is being reviewed by the City’s Controller/Treasurer. With regards to the City’s projects that would be included in the Clean Water State Revolving Fund, Mr. DePrima stated that the City has not been advised as to their inclusion.

Mr. Ruane suggested that staff keep in touch with the State and consider a letter to Congress regarding these funds reaching the City level.

Energy Block Grant

Mr. DePrima referred to the Energy Efficiency and Conservation Block Grant Program and explained that these monies will be given directly to municipalities. He noted that there are issues regarding this program that have not been resolved, such as how the program will work, the formulas, etc.

Mr. Ruane encouraged staff to identify projects and build a file and contact list so that the City can move quickly once the issues regarding this program are resolved.

Renewable Energy

Mr. DePrima explained that the State Energy Program consists of funds that would be provided to the Governor’s Office. He stated that a meeting is being scheduled with the Governor to allow the City to indicate their interest and the Governor’s consideration of available funds.

Mr. DePrima stated that the City is also interested in obtaining funds through the Home Weatherization Program.

Mr. Ruane requested that staff keep members abreast of these matters.

PACE/NAES Monthly Report (January)

Members were provided the PACE/NAES Monthly Reports for January 2009. The reports are being provided to allow members the opportunity to monitor what is being sold in electric and the revenues received, which will give members a better understanding of any fluctuations and make improvements if deemed necessary. Although it was not staff’s intention to make a presentation of the report, they welcomed any questions.

Mr. Ruane questioned if there has been consideration of allocating the emission sales revenue to a reserve account or non-recurring cost as opposed to operations. Responding, Mr. DePrima suggested that this issue could be discussed during an upcoming Energy Management Committee Meeting. He cautioned members that any revenue loss would need to be made up through rates.

Mr. McGiffin relayed his reluctance in removing the emission sales from revenue.

Status Report - McKee Run Station Pollution Remediation Project

Members were provided details regarding the McKee Run Station Pollution Remediation Project. Mr. Vince Scire, Plant Manager at McKee Run, reminded members that this project consists of activities which will reduce emissions of NOx and SOx at the McKee Run Generating Station in supporting the goals of the Delaware Regulation 1146. He reviewed the progress report for the project. He noted that the activities remaining are scheduled for June.

Responding to Mr. Ruane, Mr. Scire confirmed that this approach has resulted in significant savings.

Mr. McGiffin moved for adjournment, seconded by Major Koisor and unanimously carried.

Meeting Adjourned at 5:49 P.M.

                                                                                    Respectfully submitted,

                                                                                    Eugene B. Ruane

                                                                                    Chairman

EBR/AC/TM/jg

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