UTILITY COMMITTEE

The Utility Committee Meeting was held on December 11, 2006 at 4:30 p.m. with Chairman Carey presiding. Members present were Mr. Ruane, Mr. Slavin, Mr. Cregar, and Mr. Snaman.

AGENDA ADDITIONS/DELETIONS

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

Green Energy Presentation

Ms. Kimberly Schlichting, Delaware Municipal Electric Corporation (DEMEC), provided a presentation regarding the State of Delaware’s Renewable Energy Portfolio Standards (Attachment #1). Ms. Schlichting stated that the City has control over their Green Energy Fund and $0.178 of every megawatt hour sold, transmitted, or distributed in the State is placed in the fund. Beginning June 1 thru October 31, 2006, the City has contributed approximately $60,000 to the fund. Ms. Schlichting also provided members with a copy of the Municipal Utilities’ Green Energy Fund Program policy (Attachment #2). She outlined the limits that other municipalities have designated for grant funding. Responding to Mr. Carey, Ms. Schlichting stated that the City can contribute additional funds, if so directed by Council.

Ms. Schlichting informed members that when applications for residential and non-residential green energy projects are received, they will be reviewed by the State’s Energy Office for compliance and processing. Once the processing is complete, the State will contact DEMEC, who will then coordinate with the appropriate City departments. Ms. Schlichting noted that the State’s Energy Office is the main contact for all green energy project applications.

Responding to Mr. Ruane, Ms. Schlichting stated that developers and contractors will be permitted to submit applications to receive funding for green energy projects.

Responding to Mr. Snaman, Ms. Schlichting informed members that grant funds will be distributed on a first come first served basis, beginning January 1, 2007.

Mayor Speed asked if the interconnection agreements and net metering tariff mentioned in the policy will be required for residents who will not be producing enough green energy to contribute to the City’s system. Ms. Schlichting stated that net metering is not a requirement of the program and each municipality has the authority to institute the tariffs based on their capacity and infrastructure. Mr. Scott Lynch of the State’s Energy Office, stated that net metering is based upon dependent energy usage and it is possible that, during the daytime hours when no one is home, a residential system can generate and contribute energy to the City’s system.

Mayor Speed expressed concern with a net metering tariff being charged to residents with small green energy systems that do not contribute to the City.

Green Energy Grant Limits and Regulations

Mr. Ruane moved to defer Green Energy Grant Limits and Regulations to the next scheduled meeting to allow more time for discussion and questions. The motion was seconded by Mr. Snaman and unanimously carried.

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

Meeting Adjourned at 5:00 P.M.

                                                                                    Respectfully submitted,

                                                                                    Carleton E. Carey, Sr.

                                                                                    Chairman

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Attachments to Original Minutes and File Copy

Attachment #1 - DEMEC Presentation, Cap Consideration for Qualifying Renewable Projects

Attachment #2 - Municipal Utilities’ - Green Energy Fund Program