Michael Jennings

The Board of Directors meeting involved several key actions and discussions. The consent agenda was approved with an amendment to correct the year cited in a report on inflation from 2000 to 2020. In the Chairman's Report, updates were provided on FEMA legislation and two permitting reform acts that passed the U.S. House, including the Speed Act. The Executive Committee recommended and the Board approved modifications to Board Policy B-5, General Counsel, to clarify the counsel's role. The Budget, Finance, and Rates Committee secured approval for updated energy rates effective February 1, 2026, comparing favorably to competitor utilities. Furthermore, the Board authorized staff to negotiate a long-term power purchase agreement (not exceeding five years, 7.5% of forecasted load, and a price cap of $70 per MWh) and to pre-purchase the remainder of hedging requirements via short-term contracts. The CEO Report highlighted significant 2025 accomplishments, including financial performance (YTD margin of $9.4 million), and the Board authorized the Chair to send a letter of appreciation to staff. The CEO was also authorized to execute the annual state training grant application, typically worth around $80,000 annually. Discussions also focused on educating policymakers about the cooperative model. The NRECA report noted high performance in DC advocacy and the selection of a new external auditor. The NHEC Foundation reported progress on consolidating accounts and developing the Round Up Program. The meeting concluded with an executive session to discuss legal litigation, confidential broadband, and personnel matters.

The Budget, Finance & Rates Committee meeting focused heavily on the Co-op Power/Regional Access Rate Change projections for February 2026. Staff updated projections indicated a potential $5.5 million under-recovery balance due to colder than normal weather in November and December 2025, impacting load and spot market prices, resulting in a need for a significant upward adjustment in the embedded charge for Co-op Power. The committee voted to recommend that the Board authorizes staff to set the Co-op Power and Regional Access Charges on a bills-rendered basis effective February 1, 2026. Additionally, the committee discussed the Fall 2026 Power Purchase Plan and Schedule Proposal, recommending a strategy to hedge 67% of the total load, while noting current market prices are high. The committee also voted to recommend that the Board support a strategy for long-term, five-year purchase contracts, seen as advantageous for cost reduction and hedging future volatility. Finally, potential areas for focused budget deep dives in 2026 were discussed, including challenging property taxes, vegetation management (tree trimming/burying lines), company benefit packages, and the use of Artificial Intelligence (AI) in governance.

The committee reviewed and discussed the 2026 Electric Budget, including the Distribution Capital Budget, Other Power Resources Operating Budget, Distribution Operating Budget, and Distribution Rate Change. Key points included the capital construction three-year budget, general plant budget, capital improvement budget, and power resources and access budget. The committee also reviewed the Key Ratio Trend Analysis (KRTA) and ALDC Co-ops Benchmarking, comparing NHEC's performance with other cooperatives. Additionally, the committee discussed and recommended the approval of Master Agreements with Parental Guaranty for Boston Energy Trading and Marketing Group (BETM) and Brookfield Renewables.

The meeting included a pledge of allegiance led by the Girl Scouts, introductions of the board of directors, and recognition of guests. Discussions covered the cooperative's relationship with Owl's Nest, including metrics on electricity consumption, and future construction plans for new rental townhomes. Updates were provided on broadband expansion efforts, highlighting the importance of high-speed internet for the state's future, and recognition was given to the New Hampshire Electric Cooperative for its contributions. The NHC Foundation's scholarship program was discussed, with awards presented to student recipients. Members voted for board of director positions.

The meeting covered several topics, including a report on the major reduction in legal expenditures due to no active litigation and new policies. The history of hiring lobbyists for grant opportunities was discussed, with plans to consider ways to save money by reallocating internal resources. An AI policy was discussed, with staff having developed an internal AI policy and leveraging AI tools and vendor software. The trust's history was explained, noting unreimbursed expenses and an overfunded amount that could be used as a storm reserve fund if the trust fund was closed. The board was updated on Berry Dunn's role as interim internal auditor and the recruitment for a permanent internal auditor.