Shrewsbury Electric & Cable Operations (SELCO)

The document details a dedication ceremony and ribbon-cutting event celebrating the commissioning of the SELCO Community Solar Project, a partnership with the Massachusetts Municipal Wholesale Electric Company (MWEC). Key discussion points included the multi-year effort to build the project, which overcame past developer dropouts, and the role of MWEC in facilitating the financing and construction via a contract that bypassed standard procurement statutes to meet solar subsidy deadlines. The project is expected to provide power at or below market rate for 25 years, significantly increasing Shrewsbury Electric Light and Cable Operations' (SELCO) carbon-free generation portfolio to the benefit of residents and the Commonwealth's clean energy goals. It was noted that 10% of residential homes in Shrewsbury will be supplied by this solar power.

The special commission meeting focused primarily on reviewing and considering the approval of the June 2024 and July 2024 Bill schedules and warrants. A significant portion of the meeting involved a presentation by Baker Tilly Associates regarding the electric cost of service study and rate design. Key findings indicated an overall recommended rate increase of 9% needed to cover the cost of service, with recommendations to move customer classes closer to their cost of service. The presentation also introduced a proposal for new street lighting rates, involving a fixed charge per fixture and an energy charge. Financial analysis showed that while the proposed rates would result in negative net cash flow in the near term (2025 and 2026) due to substantial construction, the trend improves by 2027. Rate comparisons showed that even with the proposed increases, the utility's rates remain attractive compared to peer utilities.

The meeting addressed several agenda items. Discussions included the January 2025 bill schedules and warrants, where clarification was sought regarding a vendor description related to glove testing, confirming it was a general vendor description. The minutes from the January 28, 2025 meeting were accepted. The commission reviewed and approved voluntary electric and cable pilot payments in lieu of taxes for the general fund, totaling $56,390 from electric and $364,000 from cable, noting the calculation methodology based on net plant value and tax rate, and the decision to split the annual contribution for cash flow alignment with town fiscal years. The primary focus was the review and consideration of the electric rate adjustment approach and allocation, with staff now recommending an 8% overall increase, up from the previously suggested 5%, based on cost-of-service modeling which indicated 5% was insufficient. Four rate adjustment scenarios were modeled under the 8% increase, with Scenario 4 recommended as the most equitable approach, aiming to bring all rate classes close to cost of service, utilizing a 5% increase for residential customers and adjusting percentages for other classes based on consumer size. Bill impacts for an average consumer under Scenario 4 were projected, with residential bills increasing by approximately $0.57 per month. The discussion also covered the cost-of-service allocation methodology, emphasizing the impact of peak load (load factor) and transmission costs on rate design.

The meeting included the review and consideration of the December 2025 bill schedules and warrants, with discussion concerning a payment to Page Contracting for work at 118 Gulf Street. The commission also reviewed and approved the meeting minutes from December 16, 2025. A significant portion of the session was dedicated to reviewing the electric budget for 2026. Key budget topics included a strong emphasis on cybersecurity initiatives such as hardening identities and data loss prevention. Human resources discussions covered expected hiring of three new employees on the electric side and the open Director of Broadband position, projecting an end staff count of 82 employees. Financial review covered plans to formalize accounting policies and inventory/warehouse initiatives. Marketing and communications focused on community outreach for fiber and mesh Wi-Fi adoption, and planning for Shrewsbury's 300th anniversary. Discussions on capital projects noted that new building costs are excluded from the current budget pending further comprehensive approval. The electric budget detailed projects like finishing AMI meter deployment, converting 5KV wire to 13.8 KV, supporting community growth, aging infrastructure updates (Route 70 project), and infrastructure mapping. Battery storage projects were also mentioned. Financial projections showed an anticipated significant increase in total operating revenues for 2026 (about $6 million over 2025), driven by new customer load, rate updates, and higher consumption due to strategic electrification. Operating expenses were projected to increase by about 8% ($3.2 million), largely due to distribution costs related to new AMI meters and outsourced SCADA maintenance, alongside inflationary pressures. Net income was projected to be favorable, above the targeted plan, with reserves being built for anticipated capital infrastructure projects, including the new building.

The meeting began with the review and consideration of approvals for the December 2024, January 2025, and February 2025 bill schedules and warrants, which included corrections related to diesel charges and warrant placements. The commission then approved the executive session minutes from May 28, 2024 (concerning the general manager contract and cable franchise agreement) and December 17, 2024 (regarding union negotiations preparations). The primary discussion involved the review and consideration of an electric rate increase effective May 1, 2025. Specific impacts were detailed, showing residential increases of 5% (approximately $5 for an average bill) and commercial increases of 11% ($55 for an example bill), with the increases primarily driven by transmission costs. The commission recommended approval of the proposed rate adjustments. Subsequently, the marketing and communications team presented the communication plan for the rate increase, detailing outreach via the website, quarterly newsletter, bill messaging, and the customer portal, noting that over 70% of customers use the SmartHub portal. Finally, an update on CCO stream service stability was provided, outlining recent service interruptions due to sun outages, platform issues with Manurva/CNI, and transport issues with Cogent, noting that CNI handles transcoding for redundancy.