UTILITY COMMITTEE

The Utility Committee Meeting was held on January 26, 2009 at 5:00 p.m. with Chairman Ruane presiding. Members present were Mr. McGiffin, Mrs. Williams (arrived at 5:04 p.m.), Major Kosior, and Mr. Snaman. Council President Hogan (arrived at 5:05 p.m.), Mr. Slavin (arrived at 5:20 p.m.), Mr. Leary (arrived at 5:50 p.m.), and Mayor Carey (arrived at 5:24 p.m.) were also present.

AGENDA ADDITIONS/DELETIONS

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

Draft Letter to Legislators Addressing the Issue of the Clean Air Interstate Rule (CAIR) Vacation and How it is Impacting the City of Dover

During their meeting of September 22, 2008, members were provided information regarding the changes to the sulfur dioxide allowance market and it was explained that Title IV of the 1990 Clean Air Act Amendments enabled the first market-based mechanism for controlling emissions and created the SO₂ allowance. Members were reminded that the DC Circuit Court vacated CAIR and, as a result, there is an abundance of SO₂ allowances in the market place. It was suggested that Congress would like to address these allowances, which would return the value of the SO₂ allowances. At that time, Mr. Ruane suggested that when the City is presented with opportunities, such as this, they should be discussed with the legislators.

After further discussion regarding this matter during their meeting of December 8, 2008, members

authorized the City Manager to prepare a draft letter to the City’s legislators addressing the issue of the CAIR vacation and how it is impacting the City of Dover.

As directed, members were provided a draft letter to the City’s legislators for their review and recommendation.

Major Kosior stated that “court” on line 17 should be capitalized.

Mr. Ruane noted that, during their December meeting, members were provided specific budgetary amounts (PACE/NAES Report). He suggested that these amounts be included in the narrative to provide a better understanding of the criticality of this issue. Concurring, Mr. DePrima suggested that after the word “investments” on line 45, a sentence could be included that would quantify the issue.

Mr. McGiffin moved to recommend approval of the letter as amended (Attachment #1), seconded by Major Kosior and unanimously carried.

There being no objections, members considered agenda item #3 prior to agenda item #2.

PACE/NAES Monthly Report (November and December)

Members were provided the PACE/NAES Monthly Reports for November and December 2008. 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 recommended that staff issue a press release to educate the public regarding the City’s completion of the Pollution Remediation Project and to provide a better understanding of the City’s rates. Responding, Mr. DePrima requested that members consider this suggestion during the next month’s review of the PACE/NAES Report. At the conclusion of that meeting, he indicated that staff could have a press release prepared.

Discussion - State Energy Plan

Pursuant to Delaware Code, 29 Del.C. Subch. II, "The Delaware Energy Act," the Governor’s Energy Advisory Council is charged with spearheading the updating of the Delaware Energy Plan every five (5) years. The plan also includes a process for public input and measures for progress in attaining goals identified in the Energy Plan. The previous report developed by the Governor's Energy Task Force was released in the fall of 2003, while the new plan is expected to be developed and completed by spring of 2009.

Five (5) workgroups were established in the energy planning process to review current policies, resources and to make recommendations to the Governor’s Energy Advisory Council for Delaware's future energy goals, targets and policies. Members were provided details regarding the workgroups and their activities. These workgroups had completed their work and presented recommendations to the Governor’s Energy Advisory Council, which reviewed the recommendations during their meeting of January 22, 2009. Members were provided revised draft recommendations (Attachment #2). It was noted that complete copies of the reports of the working groups are available at www.dnrec.delaware.gov/Admin/Pages/DelawareEnergyPlan.aspx.

Mr. Ruane advised members that it was his observation, during meetings he attended, that Delmarva is moving in the direction of trying to assure that whatever mandates the General Assembly is asking of them are passed on to the local utility. It was his opinion that the more the City anticipates this and moves forward with other projects, such as Bluewater Wind, 2030 Energy Planning, etc., the better position the City will be in to meet any mandates since the City has already been voluntarily and pro-actively moving in this direction without a mandate.

Mr. Ruane suggested that Ms. Andrea Kreiner, Principal of A.Kreiner Company, be invited to attend a future committee meeting to review the recommendations and the implications to the local utilities.

Mr. Snaman moved for adjournment, seconded by Mrs. Williams and unanimously carried.

Meeting Adjourned at 5:51 P.M.

                                                                                    Respectfully submitted,

                                                                                    Eugene B. Ruane

                                                                                    Chairman

EBR/AC/TM/jg

S:ClerksOfficeAgendas&MinutesCommittee-Minutes20091-26-2009 UTILITY.wpd

Attachments

Attachment #1 -   Draft Letter to Legislators Addressing the Issue of the Clean Air Interstate Rule (CAIR) Vacation

Attachment #2 -   Revised Recommendation List Following the Governor’s Energy Advisory Council Meeting on 1/22/09 For Council Review