Mass Government Finance Officers Assoc September 8, 2016

AGENDA Municipal Electric Utility Overview Number / size Local Control Braintree Electric Business Model Non-profit Components of budget Hedging plan Potter II repowering project Anticipated benefits Obstacles to construct Schedule

41 Municipal Utilities in Massachusetts Smallest 1MW, Largest 170 MWs 2,886,000 MWH or 13% of total in Mass

BELD Organization 100 Employees 63 T&D, Admin 25 Generation 12 Broadband $85 million annual budget $25 million generation $60 million T&D, Admin

BELD Business Vertically Integrated 385,000 MWH with a peak of approx. 85 MW Costs broken down into Distribution Energy Transmission Capacity

Hedging Plan

Transmission - RNS

BELD Transmission Cost

New England Capacity Costs

BELD Capacity Cost* * If BELD did not have generation

BELD’s Current Capacity Supply BELD has a diverse capacity supply provided by their assets and contracts. BELD’s total obligation is 112 MWs. Potter II – 68.6 MWs Watson 1 & 2 – 31.6 MWs Seabrook Station – 7.6 MWs NYPA – 2.0 MWs Contracted – 15.3 MWs Total – 125.1* * BELD has surplus capacity and is paid for it by ISO-NE

Potter II Repowering Commercial Operation since 1977 Enhanced Maintenance to get us to 2025 Benefits Repowered Potter II gives us a hedge against future volatile capacity prices Efficient generation Obstacles Forward Capacity Auction Construction Risk Bonding

NEW POWER PLANT SCHEDULE/MILESTONES Permitting Ongoing Fall 2017 Forward Capacity Auction Feb 2017 RFP for gas turbine 2017 RFP for EPC contractor 2017 Engineering 2018 Site prep 2018 Construction 2019 – June 2020 Commercial Operation June 2020 Forward Capacity Market fully implemented by January 2010 Energy prices start to rise significantly by 2010 Further we get along in permitting process the tighter we should be able to control the scope and drive the price down.

Location of New Power Plant

QUESTIONS ?? Thank you