NHEC Board of Directors Agenda · 2016-12-28 · 5 Pursuant to proper notice duly mailed to all Directors, the regular meeting of the Directors of the 6 New Hampshire Electric Cooperative,

NOTE: CORPORATE SERVICES COMMITTEE MEETING @ 8:00 A.M.

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NHEC Board of Directors Agenda NHEC Pemi Board Room, 287 Highland Street

Tuesday, July 26, 2011, 9:05 a.m. Time Agenda Item Result (Product) Action Steps

9:05 a.m. General Meeting 1. Call to Order 2. Approval of 6/28/11 Minutes 3. Agenda Approval

1. Meeting called to order. 2. 6/28/11 minutes reviewed and

approved. 3. Agenda reviewed and approved.

1. Chair Hansen to call meeting to order. 2. Board to review and approve 6/28/11

minutes. 3. Review agenda and make any

necessary changes. 9:10 a.m. President’s Report Board informed and any questions

addressed. Ms. DeLucca to present President’s report on behalf of Mr. Anderson and address any questions.

Follow-up on Safety Activities General Financial & Operational

Update Culture Survey & Board

Assessment w/Caroline Fisher (timeline)

Copper Thefts 9:30 a.m. Corporate Services Committee

Sharon Davis, Chair 1. Board updated on 7/26/11

Corporate Services Committee Meeting.

2. Any questions addressed.

1. Committee Chair Davis to report on 7/26/11 Corporate Services Committee Meeting.

2. Address any questions on Board material.

9:45 a.m. Audit Committee Jerry Hopkins, Chair

Any questions addressed. Address any questions on Board material.

9:50 a.m. Member Solutions Committee Harry Viens, Chair

1. Board updated on 7/21/11 Member Solutions Committee Meeting.

2. Any questions addressed.

1. Committee Chair Viens to report on 7/21/11 Member Solutions Committee Meeting.


10:05 a.m. Engineering & Operations Committee Joe Kwasnik, Chair

Any questions addressed. Address any question on Board material.

NOTE: CORPORATE SERVICES COMMITTEE MEETING @ 8:00 A.M.

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10:10 a.m. Power Resources & Access Committee (portions in Executive Session) Ken Colburn, Chair

1. Board updated on recent activities. 2. Any questions addressed.

1. Mrs. Manypenny to provide update on recent activities.


10:20 a.m. Attorney’s Report Board informed of legal issues and any questions addressed.

Attorney Dean to report on legal issues and address any questions.

10:25 a.m. Legislative Update Board updated on any federal or state legislative issues.

Mrs. Gove to provide update on any federal or state legislative issues.

10:30 a.m. Board General Session 1. Review of Board Tracking

Report 2. NRECA Report 3. Schedule Committee

Meetings, if necessary 4. NHEC Foundation Report 5. NRCO Report 6. Review & Approval of any

Director and/or CEO Expense Reports

7. Any additional items for discussion

1. Board Tracking Report reviewed and any changes identified.

2. Voting delegates & alternates appointed for NRECA and CFC.

3. Any necessary Committee meetings scheduled.

4. Board updated on NHEC Foundation.

5. Board updated on NRCO. 6. Any Director and/or CEO expense

reports approved. 7. Any additional items discussed.

1. Review Board Tracking Report. 2. Board to appoint voting delegates &

alternates for NRECA and CFC regional meetings.

3. Schedule any necessary committee meetings.

4. Mr. Hansen to present NHEC Foundation Report.

5. Mr. Hansen to present NRCO Report. 6. Review any Director and/or CEO

expense reports. 7. Board to discuss any additional items.

10:45 a.m. Executive Session (if needed) Any additional Executive Session items addressed.

Discuss any additional items needing to be addressed in Executive Session.

1. Report to Board of Directors

Attachments

2. Key Indicators 3. Form 7 4. Member Sales and Delivery Service Billed 5. Board Director Calendar 6. Board Reporting Calendar 7. Board Related Issues Tracking Report 8. NHEC Director’s Information for Form 990 9. Monthly Report of Power Resources & Access Costs 10. RPS Graphs 11. CSI/AMI Quarterly Report 12. June Delivery Services Safety Committee Minutes 13. June Office Safety Committee Minutes

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NEW HAMPSHIRE ELECTRIC COOPERATIVE, INC. 1

Minutes of the Meeting of the Board of Directors 2

June 28, 2011 3

4

Pursuant to proper notice duly mailed to all Directors, the regular meeting of the Directors of the 5 New Hampshire Electric Cooperative, Inc. (NHEC) was held June 28, 2011, at the Cooperative’s 6 Pemi Board Room in Plymouth, NH. 7 8 Directors present were Jerry Hopkins, Joan Aubrey, Chuck Braxton, Ken Colburn, Sharon Davis, 9 Joseph Kwasnik, Dave Talbot, Georgie Thomas, Harry Viens, and Bruce Wiggett. Others 10 present were Fred Anderson, President/CEO; Jim Bakas, VP of Operations & Engineering; Dena 11 DeLucca, VP of Corporate and Member Services/CFO; Judy Gove, VP of Business & 12 Government Relations; Steve Kaminski, VP of Power Resources & Access; Mark Dean, 13 Attorney; Clint Hutchins, Member Solution and Marketing Manager; Stephanie Daskal and Mike 14 Deblasi of m5; Sharon Yeaton, Executive Assistant (recording); and Cooperative member Gwen 15 Bronson. 16

17 Vice Chair Hopkins called the meeting to order at 9:12 a.m. He welcomed new directors to the 18 Board and their first meeting and welcomed New Hampshire’s NRECA Director Gail Paine. 19

Approval of Minutes & Agenda Review 20

The minutes of the Board Meeting of May 31, 2011, were reviewed. Upon motion of Mr. 21 Talbot, seconded by Mr. Braxton, it was 22 23 VOTED: To adopt the minutes of the May 31, 2011, meeting of the Board of Directors as 24

amended. 25 26 Vote for the motion was unanimous. 27 28 The minutes of the June 8, 2011, Annual Meeting of Members were reviewed and will be 29 presented to the membership for approval at next year’s Annual Meeting. 30 31 The minutes of the Annual Directors Meeting of June 8, 2011, were reviewed. Upon motion of 32 Mr. Talbot, seconded by Mr. Braxton, it was 33 34 VOTED: To adopt the minutes of the June 8, 2011, Annual Directors Meeting as presented. 35 36 Vote for the motion was unanimous. 37 38 Referring to the mention in the May 31, 2011 Board minutes that neither Mr. Hansen nor Mr. 39 Kaminski were available to attend the National Renewable Cooperative Organization (NRCO) 40 meeting on May 6th

43

, Mr. Colburn suggested in the future if this situation arises perhaps someone 41 else could attend. 42

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The agenda was modified to have Mrs. Paine present the NRECA Report prior to the President’s 1 Report. 2

NRECA Report 3

Mrs. Paine presented the National Rural Electric Cooperative Association (NRECA) Report 4 noting that she would be providing a written report electronically. She mentioned a few items 5 discussed at the NRECA board meeting, including a letter many co-ops have received from 6 Innovatio regarding patent infringement claims, a report on redistricting, a report on government 7 relations, and the work the NRECA International Foundation is doing in many different 8 countries. She mentioned that the renewal period for membership in the Action Committee for 9 Rural Electrification (ACRE) is coming up in September and she encouraged everyone to join. 10 11 Mrs. Paine announced that the director election for New Hampshire’s seat on the NRECA board 12 has been rescheduled to take place at NHEC’s September Board meeting. 13 14 Mrs. Paine left the meeting at 9:37 a.m. 15

President’s Report 16

Mr. Anderson discussed safety, noting that he and Ms. DeLucca have been working with Tim 17 Ainsworth, Safety Manager, on both a short and long-term approach to revamping our safety 18 program. Mr. Ainsworth is researching the possibility of enrollment in the Rural Electric Safety 19 Achievement Program (RESAP) through NRECA as well as enrollment in the Occupational 20 Safety & Health Administration (OSHA) Voluntary Protection Programs (VPP). 21 22 Mr. Anderson and Ms. DeLucca addressed questions regarding the RESAP. 23 24 Continuing with his report, Mr. Anderson: gave a brief explanation of some of the attachments 25 provided in the Board packet each month; discussed NHEC’s financial status, indicating that 26 NHEC continues to have a good year and non-ski area kWh sales remain up over budget; 27 mentioned that the significant storm on June 9th

33

will impact NHEC’s bottom line margins as it 28 will not be Federal Emergency Management Agency (FEMA) reimbursable; discussed the 29 copper theft at NHEC’s Bridgewater Substation, which caused a power outage; and announced 30 that the installation of Smart Meters has begun with the first phase of 2,600 meters expected to 31 be completed in the next few weeks. 32

Questions on the Smart Grid project were next addressed. 34 35 With regard to the NHEC Foundation Board, Mr. Anderson advised that Lisa Sheehey, Credit 36 and Billing Supervisor, has been appointed to fill the NHEC employee position, Gail Paine was 37 appointed as a new Community Member, and we need to appointed an NHEC Director to serve 38 as a Trustee. 39 40 After a brief discussion, upon motion of Mrs. Thomas, seconded by Mr. Braxton, it was 41 42 VOTED: That Sharon Davis be appointed as a Trustee of the NHEC Foundation Board. 43 44

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Vote for the motion was unanimous. 1 2 Mr. Hutchins introduced Stephanie Daskal and Mike Deblasi of m5, the integrated marketing 3 vendor for NHEC’s Communication System Infrastructure/Advanced Metering Infrastructure 4 (CSI/AMI) project. 5 6 Mr. Deblasi and Ms. Daskal made a presentation providing background on m5, discussing 7 NHEC’s communications plan for the CSI/AMI project, and displaying the logo and tag line that 8 will be used. Questions of the Board were also addressed. 9 10 Messrs. Hutchins and Deblasi and Ms. Daskal left the meeting at 10:34 a.m. 11

Audit Committee 12

Committee Chair Hopkins noted that the Audit Committee has not met since the last Board 13 meeting. Mrs. Davis drew attention to the draft minutes for the May 31st

17

Audit Committee 14 meeting, Attachment #10 in the Board packet. Upon motion of Mr. Talbot, seconded by Mrs. 15 Davis, it was 16

VOTED: To approve the minutes of the May 31, 2011 Audit Committee meeting as presented. 18 19 Vote for the motion was unanimous. 20

Member Solutions Committee 21

Committee Chair Viens indicated that the next Member Solutions Committee meeting is 22 scheduled for July 21st

Engineering & Operations Committee 24

at 9:00 a.m. 23

Committee Chair Kwasnik mentioned that an Engineering & Operations Committee meeting will 25 be scheduled for sometime in August. 26 27 Mr. Bakas advised that King Pine Ski Area will be decommissioning its diesel generator that 28 provides power for its snowmaking equipment and coming onto NHEC’s lines, which will 29 generate an additional load of about 800 kW and necessitate an upgrade to NHEC’s Tamworth 30 Metering Point. The cost of the upgrade is about $250,000, which will put this year’s Capital 31 Construction Budget over budget. In response to a question, Mr. Bakas noted that King Pine will 32 contribute about $50,000 to the upgrade based on the Return on Investment (ROI) calculation. 33

Power Resources & Access Committee 34

Committee Chair Colburn advised that the Power Resources & Access Committee has not met 35 since the last Board meeting and will be scheduling a meeting for sometime in August. 36 37 Mr. Kaminski reported that NHEC will be filing its 2010 Annual Renewable Portfolio Standards 38 (RPS) Report with the New Hampshire Public Utilities Commission (NHPUC) by July 1st. He 39 reported that NHEC complied with its legal obligation for Renewable Energy Certificate (RECs) 40 in all classes and did not need to make an Alternative Compliance Payment (ACP). 41

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1 With respect to the ski area special contracts, Mr. Kaminski stated that the current contract ends 2 June 30th

Attorney’s Report 4

and a new contract has been provided to the ski areas for signature. 3

Attorney Dean reported on a letter NHEC received regarding a claim of Innovatio IP Ventures, 5 LLC of potential patent infringement related to the field of wireless local area network 6 (“WLAN”) technology, including the field of wireless “mesh” networking. He noted that many 7 co-ops, as well as other businesses, received the same letter and NRECA is serving as a clearing 8 house for co-ops. NHEC has contacted its suppliers and continues to monitor the situation. 9

Legislative Update 10

Mrs. Gove drew attention to the write-up in the Board Report, noting that she had nothing to add. 11 12 Discussing the issue of transmission incentives, Mr. Kaminski stated that not much has changed 13 since last month and NHEC continues to have ongoing discussions with Senator Shaheen’s 14 office. He noted that the coalition of people interested in signing onto letters or contacting 15 senators who have seats on the Energy and Natural Resources Committee to encourage a hearing 16 on the Federal Energy Regulatory Commission (FERC) granting of transmission incentives is 17 growing. 18 19 With regard to local legislation, Mr. Colburn asked if the Governor has vetoed SB 154. 20 21 Mrs. Gove replied that as of yesterday she had not heard. 22

Corporate Services Committee 23

Committee Chair Davis advised that the next Corporate Services Committee meeting is 24 scheduled for July 26th

Board General Session 26

at 8:00 a.m. She reviewed the topics that will be addressed. 25

Board Tracking Report 27 Mr. Kwasnik indicated that Item #4, NHEC & the 21st

Committee Meetings 30

Century was addressed at the Strategic 28 Planning session and can be removed from the Tracking Report. 29

The following Committee meetings are scheduled: 31

• Member Solutions Committee – July 21st

• Corporate Services Committee – July 26 at 9:00 a.m. 32

th

• Audit Committee – August 30 at 8:00 a.m. 33

th

35 at 8:00 a.m. 34

Other Committee meetings will be scheduled. 36

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Miscellaneous 1 Referring to the Regional Greenhouse Gas Initiative (RGGI) grant received for the revolving 2 loan fund, Mr. Colburn asked for confirmation that the funds are NHEC’s and we aren’t in 3 jeopardy of losing them. 4 5 Mr. Anderson responded that he believes that is the case, but we will double-check. 6 7 Mr. Colburn commented that it seems we are reasonably far behind on our targets for the energy 8 efficiency programs so perhaps we could hear about those next month. 9 10 Ms. DeLucca replied that this will be discussed at the Member Solutions Committee meeting in 11 July. 12

NHEC Foundation Report 13 Mr. Braxton reported on the NHEC Foundation Board meeting held earlier this morning noting 14 that some policies/procedures were put into place and grants totaling $20,000 were made to 15 various organizations. 16

WMGEDC 17 Mr. Braxton reported on the White Mountain Gateway Economic Development Corporation 18 (WMGEDC) annual meeting held on June 28th

Director Expense Report 23

, noting that there are no current active projects 19 underway, but there was discussion of the Incubator Project through Grafton County Economic 20 Development Corporation (GCEDC) and some discussion of a Bristol sewer extension around 21 Newfound Lake. 22

It was noted that a Director Expense Report was circulated and reviewed. 24

Executive Session 25

Upon motion of Mr. Talbot, seconded by Mr. Braxton, it was 26 27 VOTED: That the Board of Directors move into Executive Session for the purpose of 28

discussing confidential power supply projects. 29 30 Vote for the motion was unanimous and the Board moved into Executive Session at 11:04 a.m. 31 Mr. Bakas and Mss. DeLucca, Gove and Bronson left the meeting at this time. 32 33 Upon motion of Mr. Hopkins, seconded by Mrs. Thomas, it was 34 35 VOTED: That the Board of Directors move out of Executive Session. 36 37 Vote for the motion was unanimous and the Board moved out of Executive Session at 11:08 a.m. 38 39 Upon motion of Mrs. Thomas, seconded by Mr. Braxton, it was 40 41

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VOTED: That the Board of Directors authorizes management to enter into special contracts 1 with the ski area members and further authorizes the President/CEO or his designee 2 to sign said contracts. 3

4 Vote for the motion was unanimous. 5

Adjournment 6

Vice Chair Hopkins adjourned the meeting at 11:09 a.m. 7 8 9 10 ___________________________ 11

Chuck Braxton, Secretary 12 13

A TRUE COPY ATTEST: 14

15 16 17 __________________________________ 18 Jerry Hopkins, Vice Chair of the Board 19

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Attachment #1

Strategy Report N.H. Electric Cooperative, Inc. July 26, 2011

Learning & Growth Perspective

Increase Business Capabilities

Target: Improve employee knowledge of deployed business tools by having at least 80% of active employees (as of 1/1/11) completing one training by year-end.

Leading Indicators: To date, 79 employees, or 43%, have participated in at least one approved business tools training class.

Improve Work Management System & Processes

Target: Improve work flow by completing feasibility study for automated collections process by fourth quarter.

Leading Indicators: Status is unchanged from last month. A demo on NISC’s Delinquent (DQ) process took place on June 17th. A new process was created for new meter sets and implemented on June 1st

. This will help to identify and correct some issues with no account found on outage calls.

Internal Perspective

Improve Safety Performance

Type of Accident June YTD Maximum Goal for Year

Personal injury accidents – Occ. Rate Based on OSHA Recordable Incidents

6.51 7.55 <3.45

Lost time accidents (not including repetitive motion injuries) – LWD Rate Based on # of OSHA Recordable Lost Work Days and/or Restricted Duty Days

6.51 6.47 < 2.06

Vehicle Accidents – MV Rate Based on # of Measureable MV accidents where NHEC Driver Found to be at Fault

0 3.33 < 3.16

Note: The LWD rate includes any incident involving Lost Work Days or Restricted Duty based on OSHA Recordkeeping Guidelines.

The accident rates are being calculated using a format that gives us results very closely aligned with the OSHA Incident Rates or the DART Rate (Days Away from Work/Days of Restricted Work Activity).

The rates are calculated as follows: (# of accidents/average head count) x (# of days in the year/# of days in the period measured) x 100.

There was one OSHA Recordable Incident that occurred during the month of June as well as three incidents that have been classified as Records Only. The OSHA Recordable incident involved a lineworker who was injured in a fall from a utility pole during Pole Top Rescue training. He is currently out on Workers Compensation while undergoing treatment for a fracture to his spine.

Occupational Incidents/Accidents

The three Records Only cases reported include: 1) a lineworker who reported soreness in his right shoulder after using a strap hoist to complete a pole transfer, 2) a lineworker who reported pain in his left shoulder after lifting “turf mats” from a storage location, and 3) a working foreman who reported pain and swelling in his left knee after attending an administrative training session in Plymouth. His condition was eventually diagnosed as high levels of uric acid (Gout) combined with a cellulitis infection and determined not to be associated with any work-related activity.

Improve Key Operating & Business Computer Systems

Target: Integrate & automate equipment location between GIS and CIS. Minimum target is implementation of plan 50% complete.

Leading Indicators: The GIS conversion, which is scheduled for September, needs to be completed in order to integrate. There are some clean-up items we will be addressing prior to the conversion.

Target: Integrate & automate service location between CIS & GIS. Minimum target is 25% reduction of backlog.

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Leading Indicators: Status remains unchanged. There is a scheduled conversion/upgrade to the GIS program for September. Once this conversion is complete, corrections will then resume.

Target: Development of data storage and management disciplines by establishing policies and procedures for managing and storing data/documents by end of 2nd quarter; implementation of policies and procedures through a pilot program by end of 3rd quarter; and execution of the plan by end of 4th

Leading Indicators: Draft procedures have been submitted to Senior Management for review.

quarter.

Communications Infrastructure Upgrade

Target: Implementation of CSI/AMI Project with minimum of 55% of AMI tasks completed according to work plan and a minimum of 55% of CSI tasks completed according to work plan.

Leading Indicators: Based on the master plan, the AMI portion is estimated to be 35% complete and the CSI is 60% complete. See Attachment #11 for the Quarterly CSI/AMI Report.

Member Perspective

Increase Value Proposition for Members

Target: Minimum response of 74 to the American Customer Satisfaction Index (ACSI).

Leading Indicators: First quarter results show NHEC at 76, which is down from the fourth quarter 2010 score of 77. Second quarter results should be available at the end of July.

Expand Social & Environmental Responsibility Programs

Target: Minimum lifetime savings of 36,382,574 kWhs for CORE Energy Efficiency Programs.

Leading Indicators: Total lifetime savings for CORE Energy Efficiency Programs through June are 60,246,571 kWhs.

Target: Minimum lifetime savings of 6,949 metric tons of CO2

Leading Indicators: Total lifetime savings for Social and Environmental Programs through June are 2,203 metric tons.

for Social & Environmental Programs.

Improve Quality of Electric Service

Target: Lower annual outage time for SAIDI (total outage time/total members) to a maximum of 5 hours, and CAIDI (outage time/members having an outage) to a maximum of 2 hours.

Leading Indicators: SAIDI was .82 for the month of June and 4.55 year-to-date excluding major storms, and 3.86 for the month and 7.59 year-to-date including major storms. CAIDI is 1.28 for the month and 2.65 year-to-date excluding major storms, and 3.38 for the month and 3.42 YTD including major storms. There was one major storm declared for June 9th-12th

.

Financial Perspective

Meet/Exceed Debt Service Coverage

Target: Minimum Debt Service Coverage (DSC) of 1.35.

Leading Indicators: DSC of 2.04 through June is on track to achieving a DSC of 1.35 by year-end.

Conduct Cost of Service Study

Target: Review lighting rate structure.

Leading Indicators: The Cost of Service Team is currently working on the development of the rate structure for proposed light styles and revision wording in the Terms and Conditions.

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Leading Growth Indicators

310

172

221192

275

133106

123

0

50

100

150

200

250

300

350

2004 YTD

2005 YTD

2006 YTD

2007 YTD

2008 YTD

2009 YTD

2010 YTD

2011 YTD

Marathon Water Heater Sales to Members

371405

284258

137

7548 66

0

50

100

150

200

250

300

350

400

450

2004 YTD

2005 YTD

2006 YTD

2007 YTD

2008 YTD

2009YTD

2010YTD

2011YTD

New Services Net Retired Services

356,277354,380

361,213

364,390

350,672

345,052

361,282

335,000

340,000

345,000

350,000

355,000

360,000

365,000

370,000

2005 YTD

2006 YTD

2007 YTD

2008 YTD

2009 YTD

2010 YTD

2011 YTD

MWH Sales (excluding ski areas)

Page 1 of 6

Operations Report N.H. Electric Cooperative, Inc. July 26, 2011

Financial Information

Margins Year to Date through June 2011

Total NHEC Distribution

Operating Revenue $63,675,657 $26,981,851

Cost of Electric Service 56,969,576 21,209,266

Operating Margins 6,706,081 5,772,585

Non Operating Margins 109,452 101,594

Net Margins 6,815,533 5,874,179

YTD Budget 5,528,207 4,583,138

Favorable Variance 1,287,326 1,291,041

Sales through June 2011 Compared to 2010

Sales excluding ski areas:

YTD kWh Sales June 2011 361,281,738


Favorable Variance 16,229,299

Ski area sales:



Unfavorable Variance (3,219,210)

Total Favorable kWh Sales Variance 13,010,089

Sales through June 2011 Compared to Budget

Sales excluding ski areas:

YTD kWh Sales 361,281,738

YTD Budgeted kWh Sales 349,820,868


Ski area sales:

YTD Ski Area kWh Sales 25,092,614

YTD Ski Area Budgeted kWh Sales 24,048,480


Total Favorable kWh Sales Variance 12,505,004

KWh sales for the month of June (excluding ski areas) were 4.77% higher than June 2010 and 4.74% higher than the June budget. The number of days in the June read period is 30.68 for 2011 and 29.21 for 2010. For the month, kWh sales per read day of 1,711,914 are .25% lower than kWh sales per read day of 1,716,279 for June 2010.

June was somewhat warmer than last year, but still a bit cooler than normal.

The recovery has stalled and resumption of growth in the US will depend on resolution of the uncertainty surrounding the deficit talks, the outcome of the Euro crisis, and the continued expansion of the emerging economies in Brazil, Russia, India, and China.

The June jobs report was dismal. Movement on reducing the deficit appears to be necessary to get the economy moving again.

With regard to the deficit, the importance of not defaulting is understood. The key question is who takes

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the hit in reducing the deficit and when. The list of potential targets for lower spending, higher taxes, and tax reform is limited mostly to one’s imagination. However, many of those benefitting didn’t get their subsidies by being politically weak. There are many special interests with power, be it money, influence or sheer numbers.

A larger risk of default exists for many of the countries in the euro zone. It is a significant concern for Europe and potentially a further drag on the US economy. However, if it does occur it is unlikely to trigger another October 2008 type financial meltdown. For the most part, any monetary impact of a default is known for each of the countries. When Lehman Brothers defaulted the impact on the trillions of dollars of derivatives was unknown. The banks had no idea who was solvent. The value of the various bonds subject to default appears to be reasonably known. The question is who will take the hit when a default occurs, the banks, the stronger Euro nations, and/or the citizens of the countries defaulting. It may require the death of the Euro.

Interest Rates

As of July 1st

Line of Credit

the Line of Credit rate is 4.25% which is the same as last month and the long-term variable rate is 4.95%, which is the same as last month. CFC’s long-term (7 yr.) fixed interest rate this month is 5.1%, which is up from 5.0% last month.

As of July 18, 2011, our line of credit balance is zero.

Critical Ratios – June 2011

YTD Actual Requirement

Distribution DSC 2.04 1.35

Stranded/Power DSC 1.00 1.15

Equity 36.57% -

Member/Community

The number of unique visits for June was 19,463. The most visited pages (excluding home page) and the number of visitors are: OMS, 13,419; Member Newsletter, 8,746; Contact Us, 2,323; Join Our Team, 1,305; Classifieds, 1,200; News, 1,152; About NHEC, 874; and Marathon Water Heaters, 673.

Energy Initiatives

Marathon Water Heater

The 2011 sales goal is set at 240 tanks. Sales to date have resulted in 123 tanks sold to members and 7 tanks sold to non-members for a total of 130 tanks or 54% to goal.

Freeze Alarm

The sales goal for 2011 is set at 30 FreezeAlarm units. Sales to date have resulted in 4 units sold, or 13% to goal.

Whole House Surge Protection

The sales goal for 2011 is set at 10 units and there have been 8 units sold resulting in 80% to goal.

Convectair

The 2011 sales goal is set at 30 Convectair heaters and 10 units have been sold resulting in 33% to goal.

Social & Environmental Responsibility

smallSTEPS®

In the month of June, the smallSTEPS® website had 808 visitors with 3,534 pages viewed.

Energy Efficiency Loan Program

Using $200,000 in grants from the Regional Greenhouse Gas Initiative (RGGI) fund, NHEC has established a

0

5,000

10,000

15,000

20,000

25,000

WWW.NHEC.COM MEMBER VISITS

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revolving loan fund to help eligible members meet their co-pay requirements as part of the Home Performance with Energy Star program. To date, there are 24 loans completed totaling $70,062. Currently there are seven loans in process totaling $18,119 and one potential loan.

RGGI Audit

The PUC has completed its audit of the RGGI grant that was used to expand the Core Programs in 2009-2010. The final report was favorable. One issue of note was the utilization of the revolving loan fund that was established using RGGI funds. There was concern noted regarding under-utilization of the funds by Unitil and National Grid. Both companies have made proposals on how they plan to use these funds going forward. This issue has not been resolved, however it should not impact the NHEC revolving loan fund.

Core Energy Efficiency Program Update

The programs are on the road to meeting 2011 goals by year-end with a few notable exceptions. The Large C&I and Small C&I programs are currently oversubscribed, with the expectation that a majority of what is in the queue will be completed by the end of the year. In addition, based on communications with the Community Action Agencies, the Home Energy Assistance program will most likely also exceed budget and they are requesting additional funding to serve NHEC members. A portion of what is driving this is an accelerated production schedule due to their need to expend American Recovery and Reinvestment Act (ARRA) funding this year.

We are in the process of completing the final 2010 year-end report and incentive calculation for the Core Programs. Preliminary results indicate that there will be a carry forward balance. The Home Performance with Energy Star program is currently behind expectations compared to prior years. Members are sitting on the audit reports and not moving forward with proposed installations. This trend is playing out statewide. The member incentive was reduced from 75% to 50% of the total project cost, (based on feedback and agreement with parties during the Core Docket as part of the Settlement Agreement), and we believe that this may be a contributing factor. However, production typically is slow in the summer and it is expected that it may pick up when people start thinking of the heating season and filling their oil tanks. This same scenario is being

seen in the Social Responsibility program. We are monitoring this situation and will be reviewing program plans in the late summer.

The current programs were approved for a two year period; however, the utilities are required to file updated budgets and goals for 2012. This update is due in early September.

Better Buildings

The town of Plymouth received ARRA funding to implement the Better Buildings program. The goal of this program is to facilitate deep energy retrofits (accomplishing 25% savings) in homes and businesses. Plymouth is one of three communities to receive this funding. Berlin and Nashua are the other two communities to receive funding. The ARRA funds are currently earmarked for marketing and to buy down the interest rate at participating lending institutions so they can offer a 2% loan for energy efficiency projects. NHEC has had several meetings with Better Buildings staff to discuss collaboration between Better Buildings and the Core programs, specifically Home Performance with Energy Star. We are planning a joint training session with implementation contractors to provide them with information on how the two programs operate; so they can best serve program participants.

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CORE Energy Efficiency Programs

NHSaves Budget Goal Percent ofenergy efficiency programs 2011 Actual In Process Prospective Total Budget/Goal

Program Expenses ($)Energy Star Homes $113,513 $70,112 $31,367 $19,604 $121,083 106.7%

NH Home Performance w ith Energy Star $127,844 $14,331 $12,500 $25,000 $51,831 40.5%

Home Energy Assistance $162,417 $87,979 $35,872 $0 $123,851 76.3%

Energy Star Lighting $105,109 $34,563 $1,476 $0 $36,039 34.3%

Energy Star Appliances $129,759 $42,942 $2,400 $0 $45,342 34.9%

Small Business Energy Solutions $122,066 $99,930 $32,428 $62,000 $194,358 159.2%

Large C&I Retrofit $122,063 $68,912 $26,972 $47,500 $143,384 117.5%

New Equipment & Construction $107,413 $5,055 $31,062 $41,000 $77,117 71.8%

Educational Programs $26,129 $3,708 $0 $0 $3,708 14.2%

Smart Start Program $7,105 $3,384 $0 $0 $3,384 47.6%

High Eff iciency Heat Pump Pgm $96,699 $25,578 $42,630 $68,208 $136,416 141.1%

Total $1,120,117 $456,494 $216,707 $263,312 $936,513 83.6%In-process and prospective costs are estimated rebates only, other costs such as marketing, evaluation and labor are not included.

Program Participation (Projects)Energy Star Homes 37 18 24 15 57 154.1%

NH Home Performance w ith Energy Star 39 3 5 10 18 46.2%

Home Energy Assistance 50 44 25 0 69 138.0%Energy Star Lighting1 35,864 16,787 1,734 0 18,521 51.6%Energy Star Appliances1 1,735 721 91 0 812 46.8%

Small Business Energy Solutions 32 15 14 31 60 187.5%

Large C&I Retrofit 22 6 4 5 15 68.2%

New Equipment & Construction 5 3 6 6 15 300.0%

Educational Programs 0 0.0%

Smart Start Program 5 5 0.0%

High Eff iciency Heat Pump Pgm 12 3 5 8 16 133.3%

Total 37,796 17,600 1,913 75 19,588 51.8%1. Participation = units rebated

Program Savings (Lifetime kWh)Energy Star Homes 799,852 186,440 124,286 0 310,726 38.8%

NH Home Performance w ith Energy Star 2,398,242 294,779 491,298 982,597 1,768,674 73.7%

Home Energy Assistance 717,727 230,585 131,014 0 361,599 50.4%

Energy Star Lighting 8,070,159 4,514,192 469,700 0 4,983,892 61.8%

Energy Star Appliances 3,329,756 1,580,762 121,359 0 1,702,121 51.1%

Small Business Energy Solutions 3,298,149 2,089,458 2,019,307 168,313 4,277,077 129.7%

Large C&I Retrofit 9,167,837 49,805,120 537,273 50,342,394 549.1%

New Equipment & Construction 2,248,898 207,285 1,688,019 1,895,304 84.3%

Educational Programs 0 0.0%

Smart Start Program 0 0.0%

High Eff iciency Heat Pump Pgm 6,351,954 1,337,950 1,768,100 0 3,106,050 48.9%

Total 36,382,574 60,246,571 7,350,356 1,150,909 68,747,837 189.0%

1/1/11 - 6/30/11

Page 5 of 6

Social and Environmental Programs

Budget Goal Percent ofSocial & Environmental Programs 2011 Actual In Process Prospective Total Budget/Goal

Program Expenses ($)Home Performance w ith Energy Star $187,500 $18,721 $47,500 $57,500 $123,721 66.0%

High Eff iciency Heat Pump Pgm $210,000 $4,400 $40,000 $4,000 $48,400 23.0%

Solar Hot Water $37,500 $6,750 $11,250 $13,500 $31,500 84.0%

C&I Fossill Fuel $150,000 $19,478 $15,000 $20,000 $54,478 36.3%

C&I Heat Pumps $100,000 $0 $25,000 $7,000 $32,000 32.0%

Heat Pump Water Heater (carryover 2010) $0 $150 $0 $0 $150 0.0%

Solar PV for Education (carryover 2010) $0 $5,000 $0 $0 $5,000 0.0%

Marketing & Sponsorships $65,000 $8,958 $8,958 13.8%

Total $750,000 $63,457 $138,750 $102,000 $290,099 38.7%

Program Participation (Projects)Home Performance w ith Energy Star 75 6 19 23 48 64.0%

High Eff iciency Heat Pump Pgm 35 2 5 3 10 28.6%

Solar Hot Water 50 6 15 18 39 78.0%

C&I Fossill Fuel 30 5 3 4 12 40.0%

C&I Heat Pumps 4 0 1 1 2 50.0%

Heat Pump Water Heater (carryover 2010) 0 1 0 0 1 0.0%

Solar PV for Education (carryover 2010) 1 0 0 1 0.0%

Total 194 19 43 49 111 57.2%

Program Savings (Lifetime Metric Tons CO2)Home Performance w ith Energy Star 2,899 269 851 1,030 2,150 74.2%

High Eff iciency Heat Pump Pgm 1,500 191 0 0 191 12.7%

Solar Hot Water 614 144 360 432 936 152.4%

C&I Fossill Fuel 2,305 1,564 0 0 1,564 67.9%

C&I Heat Pumps 1,008 0 0 0 0 0.0%

Heat Pump Water Heater (carryover 2010) 0 15 0 0 15 0.0%

Solar PV for Education (carryover 2010) 0 21 0 0 21 0.0%

Total 8,326 2,203 1,211 1,462 4,877 58.6%

1/1/11 - 6/30/11

Page 6 of 6

Legislative Update

Governor Vetoes RGGI Repeal Bill (SB 154)

On July 6, the Governor vetoed the so-called Regional Greenhouse Gas Initiative (RGGI) bill (SB 154). Without enough support in the Senate to override the veto, we don’t expect there to be an override. As of this time, it looks like RGGI will resurface again in the House as it has made it to the 2012 legislative LSR listing. More details will be coming when the session gets underway.

Senate Bill 323

The draft report was issued by Vermont Energy Investment Corp. (VEIC) on June 30th. VEIC presented an overview at the July 8th Energy Efficiency and Sustainable Energy (EESE) Board meeting. Comments are being collected and compiled by the Study Committee and are due on Friday, July 22nd. Comments will not be filtered. Parties are being encouraged to collaborate with affiliate parties to streamline the process. NHEC will be working with the other three NH utilities to submit a joint set of comments. VEIC will be preparing a modified report and executive summary which will be presented to the EESE Board on September 9th

Energy Savings and Industrial Competitiveness Act Of 2011

. Following that there will be two public presentation dates. The results of this study will be used as the basis for future program modifications.

The Senate Energy and Natural Resources (ENR) committee recently passed an amended version of Senator Shaheen’s Energy Efficiency bill, S.1000. The bill called for offering incentives to promote the use of energy efficiency technologies for residential and commercial sectors. Among the various provisions of the legislation, the bill called for increased appliance standards and the establishment of the Rural Energy Savings Program, a loan program available to members of rural electric cooperatives who wish to pay for energy efficiency improvement projects. Both of these provisions were removed from the bill as they are either being addressed in other legislation or other committees.

Power Resources & Access

(Steve K. writing on 7/17/2011)

The NEPOOL Participants Committee held its summer Meeting on July 12-14. As has been the case for several years, the meeting included time for each voting sector

to meet privately with a group of ISO-New England board members and senior management and then also with a group of New England state electric utility commission members and staff members. The Public Entities Sector focused on a couple of themes.

One is a suggestion to make market changes, over time, to provide different types of resources with different pricing that better recognizes and compensates operating characteristics that are needed for different operating conditions. A simple example is paying prices (combination of capacity, energy and other defined or yet-to-be defined products) to generators, demand response and storage technologies that can ramp their output up and down fast when dispatchers need that are higher than prices to base load units (e.g., nukes) that don’t provide fast ramping.

Another theme of public power on behalf of our consumers was to continue the push to find and fairly fund non-transmission alternatives to address both reliability and congestion problems. (Notably, in his report to the meeting, the external market monitor stated that because of the transmission added over the last few years that further transmission additions are no longer justifiable on the basis of congestion costs alone).

Finally, also on transmission, we took the opportunity in our meeting with regulators to talk about our efforts to seek congressional attention to FERC’s very liberal award of return-on-equity incentive adders on top of already high base ROE’s, especially in New England where transmission owners have a contractual obligation to build when the ISO determines transmission is needed for reliability. The regulators in the individual states and through the New England Council of Public Utility Commissioners (NECPUC) are aligned with us on this matter and agreed we should coordinate when and as appropriate.

Page 1 of 2

Quarterly Operations Report N.H Electric Cooperative, Inc. July 26, 2011

Budget Projections

The Budget Projections Update will be distributed at the Board meeting.

Corporate Balanced Scorecard (BSC) Report

The second quarter BSC Report will be distributed at the Board meeting.

Renewable Portfolio Standards (RPS) Graphs

Updates of the RPS obligations v. resources charts are included in the Board packet as Attachment #10.

Rental Income Report – Northway Bank

YTD through June 30, 2011

Actual Budget Difference Lease Revenue $ 12,231 $ 12,486 $ (255) Lease Property - Building Maintenance 8,802 7,036 (1,766)

Lease Property - Depreciation Expense 2,865 2,865 0

Lease Property - Property Tax 2,362 2,200 (162) Total expenses 14,029 12,101 (1,928)

Total margins $ (1,798) $ 385 $ (2,183)

Margins from Contracts Report - Wolfeboro

YTD through June 30, 2011

Actual Budget Difference Revenue $ 356,713 $ 347,991 $ 8,722 Maintenance/Construction/Operations 198,007 188,071 (9,936)

Benefits 89,073 96,250 7,177

Miscellaneous 13,993 21,789 7,796 Total expenses 301,073 306,110 5,037 Total margins $ 55,640 $ 41,881 $ 13,759

Page 2 of 2

Report on Contributions

The Report on Contributions will be distributed at the Board meeting.

List of Authorized Signers

The List of Authorized Signers will be reviewed by the Corporate Services Committee at its July 26th

Inventory Adjustment

meeting.

The Inventory Adjustment will be reviewed by the Corporate Services Committee at its July 26th

CSI/AMI Update

meeting.

The Communication System Infrastructure/Advanced Metering Infrastructure (CSI/AMI) update is included in the Board packet as Attachment #11.

Typical Bill Comparison

Ashland Municipal - NH $76.77

Central Maine Power - ME $74.79

Central Vt Public Service - VT $82.97

National Grid - NH $63.61

NHEC - NH $95.33

PSNH - NH $90.11

Unitil - NH $72.70

Washington Electric - VT $81.54

Wolfeboro - NH $83.48

Vermont Electric - VT $91.73

Typical Bill Comparison Residential - 500 kWh

As of June 1, 2011

Customer Charge Delivery Charge Regional Access

Stranded System Benefit & Taxes Energy or Co-op Power

CAPITAL COSTS

GENERAL PLANT BUDGET TO ACTUAL CUMULATIVE

0

100

200

300

400

500

600

700

800

900

Thou

sand

s

YTD Budget 0 0 41 41 41 292 292 292 298 568 568 774

YTD Act & Encumbered 0 25 223 814 810 834 0 0 0 0 0 0

Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec

Graph # 1

Capital expenditures are higher than budget for the 1st half of 2011 but only because of the acquisition of the Fairgrounds property in Plymouth which was authorized by the Board of Directors. Vehicle purchases accounted for 78% of the remainder of the items purchased.

Attachment #2

NH Electric Cooperative - Board Report Page 1 of 10 June 2011

Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec2010 Actual 74.2 135.5 190.0 244.8 294.9 345.1 411.7 477.1 539.8 592.5 643.0 702.52011 Actual 71.3 137.9 198.3 259.4 308.8 361.32011 Budget 72.9 135.2 192.5 251.1 299.7 349.8 409.9 468.5 533.3 583.7 632.9 693.1

SALES STATISTICS

YTD ENERGY KWH SALES VS PROJECTIONWithout Ski kWh

ENERGY KWH SALES VS. PROJECTIONWithout Ski kWh

0

10

20

30

40

50

60

70

80

Mill

ions

2010 Actual 74.23 61.22 54.6 54.74 50.13 50.13 66.67 65.41 62.64 52.74 50.48 59.5

2011 Actual 71.3 66.7 60.4 61.1 49.4 52.5 0 0 0 0 0 0

2011 Budget 72.9 62.2 57.3 58.5 48.6 50.1 60.1 58.5 64.8 50.4 49.2 60.2

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

kWh sales for month of June, excluding ski areas, were 4.74% higher than budget and 4.77% higher than June 2010. For the 1st half of the year kWh sales were higher than budget by 3.28% and higher than last year by 4.70%. Residential and C & I sales are higher than the first half of last year.

Graph # 2

Attachment #2


Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec2010 Actual 86.5 157.5 215.8 272.1 322.8 373.4 440.6 506.6 569.9 623.2 674.3 740.52011 Actual 83.7 157.9 220.4 283.1 333.3 386.42011 Budget 82.9 152.9 213.7 273.8 323.2 373.9 434.5 493.7 559.1 610.1 659.9 724.0

YTD ENERGY KWH SALES VS PROJECTIONWith Ski kWh

AVERAGE HEATING DEGREE DAYS

0

200

400

600

800

1000

1200

1400

1600

Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec

2010 2011 25 Year Average

Graph # 4

The first quarter of 2011 was relatively cold, when measured by heating degree days. Only one time in the last 6 years did the number of heating degree days surpass the level recorded in 2011. Cold weather would explain a portion of the increase in kWh sales. Residential kWh consumption was at its highest 1st half level since 2008.

ENERGY KWH SALES VS. PROJECTIONWith Ski kWh

0

10

20

30

40

50

60

70

80

90

100

Mill

ions

2010 Actual 86.452438 70.999259 58.361651 56.236334 50.726448 50.588133 67.187687 66.076513 63.285772 53.272987 51.08338 66.194369

2011 Actual 83.726008 74.163602 62.467735 62.790467 50.180592 53.045948 0 0 0 0 0 0

2011 Budget 82.8506897 70.0943906 60.7180857 60.1822601 49.3818292 50.6420934 60.6292337 59.1655006 65.4763943 50.9643507 49.7753917 64.1607593


Total kWh sales exceeded budget for the month by 4.75% and are higher than June of 2010 by 4.86%. Year to date sales are higher than budget by 3.34% and higher than the same period last year by 3.48%. Sales are higher than budget for each month thus far in 2011 with Residential, Commercial and small Industrial segments reflecting solid gowth.

Graph # 3

Attachment #2


DISTRIBUTION COSTS

Distribution Costs Per kWh Monthly

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Cen

ts

2010 Actual 3.45 4.05 5.93 6.64 6.44 6.37 4.59 4.92 4.06 5.88 6.73 6.65

2011 Actual 3.93 3.4 5.11 5.01 5.44 5.71 0 0 0 0 0 0

2011 Budget 3.86 4.27 5.05 5.41 6.29 6.11 5.47 4.6 4.68 6.53 6.41 5.51


Distribution Costs Per kWh Year-To-Date

-0.75

0.37

1.50

2.62

3.75

4.87

6.00

Cen

ts

2010 Actual 3.45 3.71 4.28 4.75 5 5.18 5.09 5.07 4.96 5.04 5.16 5.3

2011 Actual 3.93 3.68 4.09 4.29 4.46 4.63 0 0 0 0 0 0

2011 Budget 3.86 4.05 4.33 4.57 4.83 5 5.07 5.01 4.97 5.1 5.2 5.23


Graph # 5

Graph # 6

Distribution costs on a per kWh basis for the month of June (5.71¢) were lower than the budget (6.11¢) and lower than the same month last year (6.37¢). KWH sales were higher than budget and operation expenses were within .1% of budget.

The ratio of distribution expenses per kWh for the 1st half of the year was favorable compared to the budget and also when compared to last year. Higher kWh sales was a major factor in the calculation of this ratio and expenses tracked close to budget.

Attachment #2


DISTRIBUTION COSTS

A&G by CategoryYear-To-Date

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

2010 Actual 2011 Actual 2011 Budget

2010 Actual 2023378 271231 312727 2441302 419638 386645

2011 Actual 2201166 168045 357017 2571017 536084 318613

2011 Budget 2207336 332043 370269 2493616 633720 464890

Admin & Office Exp

Outside ServicesInjuries & Damages

Pension & Benefits

Misc Gen'l Exp Maintenance Exp

Graph # 7

Distribution A & G expenses for the year were lower than budget by 5.38% but higher than last year by 5.07%. Only the Pension & Benefits segment was higher than budget and these higher costs are for medical insurance, pension costs and CWIP allocations which will level out as construction projects increase during the summer months.

Attachment #2


EQUITY / TOTAL ASSETS

0

5

10

15

20

25

30

35

40

Perc

enta

ge

Actual Budget (Target)

Actual 30.12 30.46 31.03 31.85 31.96 32.82 33.24 33.41 34.9 35.22 35.52 36.59 36.57

Budget (Target) 29.37 29.5 30.06 30.41 30.94 30.93 30.93 33.08 33.45 34.13 34.83 34.82 34.67

Jun 10 Jul 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11

CASH DEBT SERVICE COVERAGEDISTRIBUTION ONLY - ROLLING 12 MONTHS

1.2

1.3

1.4

1.5

1.6

1.7

1.8

1.9

2

Actual Budget Mortgage Req.

Actual 1.52 1.58 1.55 1.62 1.65 1.66 1.71 1.71 1.76 1.79 1.86 1.9 1.91

Budget 1.64 1.66 1.65 1.66 1.68 1.69 1.7 1.71 1.73 1.75 1.76 1.77 1.8

Mortgage Req. 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35


Graph # 10

Graph # 9

The Equity to Assets ratio at 36.57% through the first half of 2011 is higher than budget by 5.5%. Net margins for the were favorable by 23.3% compared to budget and assets were slightly lower than budget .

Distribution DSC was higher than budget for the first half by 6.1% and well above the mortgage requirement of 1.35.

Op Mar + Non Op Int + Int Exp + Depr Exp + Cap CreditSum of all Principal and Interest Expense

Attachment #2


POWER/STRANDED COSTS

CASH DEBT SERVICE COVERAGEPOWER/STRANDED COST - ROLLING 12 MONTHS

1

1.1

1.2

1.3

1.4

1.5

Actual Budget Mortgage Req.

Actual 1.17 1.17 1.17 1.17 1.17 1.17 1.16 1.16 1.14 1.15 1.16 1.16 1.16

Budget 1.15 1.16 1.16 1.16 1.16 1.16 1.15 1.14 1.14 1.14 1.16 1.16 1.16

Mortgage Req. 1.15 1.15 1.15 1.15 1.15 1.15 1.15 1.15 1.15 1.15 1.15 1.15 1.15


Graph # 11

DSC for power and stranded cost was equal to the budget and slightly higher than the mortgage requirement.

Op Mar + Non Op Int + Int Exp + Depr Exp + Cap CreditSum of all Principal and Interest Expense

Attachment #2


0

0

5

10

15

20

25

30

35

40

45

JUN 10 JUL 10 AUG 10 SEP 10 OCT 10 NOV 10 DEC 10 JAN 11 FEB 11 MAR 11 APR 11 MAY 11 JUN 11

Ave

rage

Hou

rs p

er M

embe

r

Rolling 13- Month Outage Record

Trees/Limbs Transmission Weather Other

Graph #13


2008 46 19 42 63 80 75 74 71 60 53 32 35

2009 13 10 34 55 55 70 47 49 62 58 45 27

2010 29 26 40 53 49 62 51 49 63 43 44 30

2011 9 8 30 46 54 55

0

25

50

75

100

Requests for New Service WorkNumber of Monthly Request

2008

2009

2010

2011

Graph #14

This graph represents 13 months of outages that have been averaged over the prior 12 months by cause.

This graph represents the number of New Service Work Orders initiated at time of applicant's first inquiry. This is a Leading indicator of potential new service and replaces the former Work Order Activity Report that captured the number of all types of work orders that completed the staking phase.

Attachment #2


Initiate Preconstruction Pre-release Construction Construction Complete

December-10 183 2 9 30 25

January-11 136 2 5 24 23

February-11 126 0 3 24 22

March-11 147 0 3 22 22

April-11 177 0 3 20 22

May-11 197 0 3 20 21

June-11 235 0 3 18 20

0102030405060708090

100110120130140150160170180190200210220230240250

Service Order Type

New Service Order StatusWork in Progress by Phase

Initiate - New SO initiated - SO not released for design work until Service Commitment Fee paidPreconstruction - Line Design (staking) phase Pre-release - Design completed - lacking pre-release requirement(s) such as prepayment, easement etc.Construction - Released for construction - new service not completed.Construction Complete - Work completed in field but new account not activated.

Graph #15

2011 YTD Construction Complete = 155

Attachment #2


Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec

2006 73,028 115,563 120,141 130,725 135,805 152,650 171,434 179,214 186,695 240,105 250,725 266,360

2007 15,210 18,606 46,158 1,065,084 1,074,019 1,090,098 1,096,168 1,167,759 1,184,195 1,201,150 1,203,240 1,213,625

2008 16,845 82,849 106,053 118,305 123,715 143,573 233,708 255,840 285,204 295,797 312,749 456,685

2009 3,768 53,004 54,636 77,432 110,833 122,823 131,904 152,059 157,220 184,056 291,980 332,779

2010 21,297 962,759 1,266,380 1,300,994 1,314,145 1,319,177 1,380,907 1,387,782 1,401,856 1,442,937 1,461,257 1,525,721

2011 957 41,666 55,487 71,033 75,596 157,955

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

1,100,000

1,200,000

1,300,000

1,400,000

1,500,000

1,600,000

NHEC 2011

Cumulative Member Outage Hours - Caused by Trees/Limbs Graph #16

For the month of June there were 82,359 hours of tree related outages with one Major Storm for the period of June 9th through the 12th.

For the month of June the ROW department reports 30.43 miles of line have been cleared for a total of $125,685.49 at a cost of $597,803.47 YTD. YTD danger trees cut are at 834 at a cost of $104,751.10 YTD.

Please note: We report any outage that lasts more than 5 minutes affecting 1 or more members.

Attachment #2


PERIOD END: June 30, 2011CERTIFICATION

We hereby certify that the entries in this report are in accordance with the accounts and other records of the systemand reflect the status of the system to the best of our knowledge and belief.

ALL INSURANCE REQUIRED BY PART 1788 OF 7 CFR CHAPTER XVII, REA, WAS IN FORCE DURING THE REPORTINGPERIOD AND RENEWALS HAVE BEEN OBTAINED FOR ALL POLICIES.

Signature of Accountant DATE

Signature of President/CEO DATE

ThisITEM Last Year This Year Budget MonthLN# (a) (b) (c) (d)1 Operating Revenue & Patronage Capital 65,422,181$ 63,675,657$ 62,132,699$ 7,664,329$ 2 Power Production Expense 0 0 0 03 Cost of Purchased Power 30,075,654 27,754,667 25,210,099 3,351,5114 Transmission Expense 6,264,706 5,196,680 6,513,644 16,9135 Distribution Expense - Operation 1,560,026 1,733,090 1,458,285 286,5006 Distribution Expense - Maintenance 2,714,043 2,212,520 2,238,766 523,1217 Consumer Accounts Expense 1,442,717 1,397,030 1,402,794 243,2578 Customer Service & Information Expense 44,396 19,524 258,848 3,2139 Sales Expense 458,272 536,812 747,644 139,71210 Administrative & General Expense 5,854,921 6,151,941 6,501,873 923,63711 Total Operation & Maintenance Expense (2 thru 10) 48,414,736$ 45,002,263$ 44,331,952$ 5,487,862$ 12 Depreciation & Amortization Expense 8,564,101 7,438,642 7,716,571 616,74613 Tax Expense - Property 1,608,741 1,628,731 1,633,125 271,00714 Tax Expense - Other 540,375 534,179 502,725 84,33915 Interest on Long-Term Debt 2,733,548 2,647,468 2,663,299 441,83116 Interest Charged to Construction - Credit (49,421) (65,170) (75,000) (12,484)17 Interest Expense - Other 73,718 8,985 123,285 61618 Other Deductions (228,493) (225,523) (182,774) (37,587)19 Total Cost of Electric Service (11 thru 18) 61,657,304$ 56,969,576$ 56,713,184$ 6,852,331$ 20 Patronage Capital & Operating Margins (1 minus 19) 3,764,877$ 6,706,081$ 5,419,516$ 811,999$ 21 Non Operating Margins - Interest 50,847 39,178 50,205 (1,155)22 Allowance for Funds Used During Construction 0 0 0 023 Income (Loss) from Equity Investments 0 0 0 024 Non Operating Margins - Other 120,353 70,273 58,487 12,03325 Generation & Transmission Capital Credits 0 0 0 026 Other Capital Credits & Patronage Dividends 0 0 0 027 Extraordinary Items 0 0 0 028 Patronage Capital or Margins (20 thru 27) 3,936,077$ 6,815,533 5,528,207$ 822,878$

ITEM Year-To-Date Year-To-DateLast Year This Year Last Year This Year

(a) (b) (a) (b)1 New Services Connected 127 101 6 Miles Transmission 0.00 0.002 Services Retired 79 35 7 Miles Distribution-Overhead 4,825.56 4,827.873 Total Services in Place 81,925 82,250 8 Miles Distribution-Undergound 679.12 693.434 Idle Services 3,367 3,509 9 Total Miles Energized 5,504.68 5,521.305 Total Active Services 78,558 78,741

CFC Form 7 PAGE 1 OF 2 PAGES

FINANCIAL AND STATISTICAL REPORT

BORROWER DESIGNATION N.H. -4- Merrimack

BORROWER NAME & ADDRESSNew Hampshire Electric Cooperative, Inc.PLYMOUTH, NEW HAMPSHIRE

PART A. STATEMENT OF OPERATIONS

PART B. DATA ON TRANSMISSION AND DISTRIBUTION PLANT

Attachment #3


PERIOD END: June 30, 2011

1 Total Utility Plant in Service 280,338,504 30 Memberships 02 Construction Work in Process 7,198,090 31 Patronage Capital - as of 5/06/91 12,278,1593 Total Utility Plant (1+2) 287,536,594 31 Patronage Capital - since 5/06/91 58,767,9394 Accum. Provision for Depreciation & Amort. 128,493,909 32 Operating Margins - Prior Years 05 Net Utility Plant (3-4) 159,042,685 33 Operating Margins - Current Year 6,706,0816 Nonutility Property - Net 314,771 34 Non Operating Margins 109,4517 Investment in Subsidary Companies 0 35 Other Margins and Equities (2,790,973)8 Invest. in Assoc. Org. - Patronage Capital 5,832,173 36 Total Margins & Equities (30 thru 35) 75,070,6589 Invest. in Assoc. Org. - General Funds 0 37 Long-Term Debt REA (Net) 0

10 Invest. in Assoc. Org. - Nongeneral Funds 5,741,734 38 Long-Term Debt - Distribution 96,390,84511 Investments in Economic Development Projects 0 39 Long-Term Debt - Seabrook 012 Other Investments 0 40 Long-Term Debt - Termination 013 Special Funds 0 41 Total Long-Term Debt (37+40) 96,390,84514 Total Other Property & Investments (6 thru 13) 11,888,678 42 Obligations Under Capital Leases 015 Cash - General Funds 227,202 43 Accumulated Operating Provisions 016 Cash - Construction Funds - Trustee 0 44 Total Other Noncurrent Liabilities 017 Special Deposits 1,104,828 46a Accounts Payable 7,206,39518 Temporary Investments 6,010,352 46b Current portion of Long Term Debt & LOC 9,492,25719 Notes Receivable - Net 260,000 47 Consumer Deposits 1,380,83320 Accounts Receivable - Net Sales of Energy 10,445,148 48 Other Current & Accrued Liabilities 5,989,67921 Accounts Receivable - Net Other 417,799 49 Total Current & Accrued Liabilities (45 thru 48) 24,069,16422 Material & Supplies - Electric & Other 1,873,823 50 Deferred Credits 9,749,06523 Prepayments 1,360,984 Deferred Credits - Quality of Service Liabilities 024 Other Current & Accrued Assets 24,550 51 Accumulated Deferred Income Taxes 025 Total Current & Accrued Assets (15 thru 24) 21,724,686 52 Total Liabilities & Other Credits 26 Regulatory Assets 12,199,580 (36+41+44+49 thru 51) 205,279,73227 Other deferred Debits 424,102 Estimated Contributions-In-Aid-of-Construction28 Accumulated Deferred Income Taxes 0 53 Balance Beginning of Year 029 Total Assets & Other Debits (5+14+25 to28) 205,279,732 54 Amounts Received This Year (Net) 0

55 TOTAL Contributions-in-Aid-of-Construction 0

June 30, 2011 YEAR-TO-DATENo. Recv No.Minimum Avg.No. kWh Sold Amount

CLASS OF SERVICE Service kWh Sold Bills W/Service Cumulative Cumulativea b d e f g

1 Residential Sales (excl. seas.) 68,319 30,886,100 0 68,351 235,586,174 42,953,2992 Residental Sales Seasonal3 Irrigation Sales4 Comm.& Ind. 1000 kVA or less 10,238 19,498,743 0 10,238 114,360,517 15,799,0995 Comm.& Ind. - over 1000 kVA 9 2,556,324 0 9 35,796,997 2,767,7856 Public St.& Highway Lghtng. 93 104,781 93 630,664 164,4897 Other Sales to Public Auth.8 Sales for Resale - REA Borr.9 Sales for Resale - Others 0 0 0

10 Total Sales of Electric Energy (1 thru 9) 78,659 53,045,948 0 78,691 386,374,352 61,684,673

11 Other Electric Revenue 1,990,98512 Total (10 + 11) 63,675,657

ITEM Jun, 2011 Year-To-Date ITEM Jun, 2011 Year-To-Datea b a b

1 Net kWh Generated 0 0 6 Office Use 108,122 1,042,9402 kWh Purchased 52,686,036 355,394,783 7 Total Unaccounted for3 Interchange kWh - Net (4 less 5 & 6) 6,057,963 5,355,1234 Total kWh - Net 52,686,036 355,394,783 8 Percent System Loss (7/4)x100 11.50% 1.51%

9 Maximum Demand (kW) 173,0365 Total kWh - Sold 46,519,951 348,996,720 10 Month When Maximum Demand Occurred Jan.

CFC Form 7 PAGE 2 OF 2 PAGES

FINANCIAL AND STATISTICAL REPORTBORROWER DESIGNATION

N.H. -4- Merrimack

PART C. BALANCE SHEETASSETS AND OTHER DEBITS LIABILITIES AND OTHER CREDITS

CONSUMER SALES AND REVENUE DATA

Amountc

4,956,726

2,138,607178,613

24,205

0

7,298,151366,178

7,664,329kWh AND Kw STATISTICS

Attachment #3


MEMBER SALES AND DELIVERY SERVICE BILLED Month Ending ------------------------- June 30, 2011

CURRENT MONTH YEAR-TO-DATENo. of 2011 2010 Variance Variance Jun Variance VarianceBills Current Current Budget Actual/Budget 2011/2010 2011 2010 Budget Actual/Budget 2011/2010

Month sales Month sales

68,319 $2,616,195 $2,369,911 $2,563,228 2.07% 10.39% $17,404,207 $15,657,974 $17,022,787 2.24% 11.15%30,886,100 29,226,739 30,037,580 2.82% 5.68% 235,586,174 223,335,215 227,734,449 3.45% 5.49%

10,217 $989,261 $890,911 $959,396 3.11% 11.04% $5,816,551 $5,222,938 $5,676,710 2.46% 11.37%17,032,983 16,601,573 16,653,459 2.28% 2.60% 100,325,892 97,673,080 97,924,117 2.45% 2.72%

25 $188,110 $159,259 $156,549 20.16% 18.12% $1,029,395 $879,357 $922,267 11.62% 17.06%4,497,657 4,196,105 3,345,082 34.46% 7.19% 24,739,008 23,391,992 23,510,151 5.23% 5.76%

93 $18,939 $18,470 $18,721 1.16% 2.54% $113,911 $111,321 $113,218 0.61% 2.33%104,781 108,089 108,089 -3.06% -3.06% 630,664 652,152 652,152 -3.29% -3.29%

78,654 $3,812,504 $3,438,552 $3,697,894 3.10% 10.88% $24,364,064 $21,871,589 $23,734,981 2.65% 11.40% 52,521,521 50,132,506 50,144,210 4.74% 4.77% 361,281,738 345,052,439 349,820,868 3.28% 4.70%

5 $10,372 $8,324 $8,991 15.36% 24.60% $328,681 $351,902 $314,174 4.62% -6.60%524,427 455,627 497,883 5.33% 15.10% 25,092,614 28,311,824 24,048,480 4.34% -11.37%

78,659 $3,822,877 $3,446,876 $3,706,885 3.13% 10.91% $24,692,745 $22,223,491 $24,049,155 2.68% 11.11%53,045,948 50,588,133 50,642,093 4.75% 4.86% 386,374,352 373,364,263 373,869,349 3.34% 3.48%

$115,991 $643,5902,403,855 12,505,003

Revenue Includes all delivery rate components, excluding the December unbilled income adjustment.

Variation from prior year - Rolling Twelve Months SalesCalculation: Current year rolling 12 month sales less rolling 12 months sales a year ago, divided by rolling we had a year ago (excluding ski areas).

Jun. 2010 Jul. 2010 Aug. 2010 Sep. 2010 Oct. 2010 Nov. 2010 Dec. 2010 Jan. 2011 Feb. 2011 Mar. 2011 Apr. 2011 May. 2011 Jun. 2011-2.33% -0.35% 0.43% 0.85% 1.36% 1.50% 2.50% 2.14% 3.93% 5.32% 6.25% 5.94% 5.73%

Positive %

Budget sales forecast assumptions: increase of 1.55% for 2011, increase of 1.0% for 2012 and 1.0% for 2013

Class of Service

Residential Delivery Sales

Municipal Lighting

Delivery Sales Kilowatt-hour sales

Budget Variance - Kilowatt-hour sales

Kilowatt-hour salesSub-total Sales

Total Kilowatt-hour sales

Kilowatt-hour sales Delivery Sales

Total Delivery Sales

Budget Variance - Delivery Sales

Delivery Sales Kilowatt-hour salesSpecial Contract - Ski

Kilowatt-hour salesComm. & Industrial

Delivery Sales

Kilowatt-hour sales Delivery Sales

Primary General

724,

040,

979

730,

936,

887

737,

901,

754

300,000,000

350,000,000

400,000,000

450,000,000

500,000,000

550,000,000

600,000,000

650,000,000

700,000,000

750,000,000

800,000,000

1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Annual TOTAL kWh Sales

Actual Annual kWh Sales Budget Sales Forecast

Attachment #4

NH Electric Cooperative - Board Report Page 1 of 1 Jun 2011

New Hampshire Electric Cooperative, Inc.Board of Director Calendar

as of 7/19/11

Attachment #5

July3 Last day a recount may be requested

21 Member Solutions Committee Meeting, 9:00 a.m.26 Corporate Services Committee, 8:00 a.m.

Board Meeting, 9:05 a.m.

August11 Engineering & Operations Committee Meeting, 9:00 a.m.

Power Resources & Access Committee Meeting, 10:00 - 11:30 a.m.21 - 24 NEPPA Annual Conference, Rockport, Maine

30 Audit Committee, 8:00 a.m.Board Meeting, 9:05 a.m.

September6 NRECA Pre-Regional Meeting Education

7 - 8 NRECA Regional Meeting, Baltimore, MD27 NHEC Foundation Meeting, 8:00 a.m.


October25 Board Meeting

November29 Board Meeting

December27 NHEC Foundation Meeting, 8:00 a.m.


2012January

31 Board Meeting

February28 Board Meeting

March1 - 9 NRECA Annual Meeting, San Diego, CA

27 NHEC Foundation Meeting, 8:00 a.m.Board Meeting, 9:05 a.m.

April24 Board Meeting

29 - May 2 NRECA Legislative Conference, Washington, DC

May16 - 18 NEAEC Annual Meeting, Saratoga Springs, NY

29 Board Meeting

June26 NHEC Foundation Meeting, 8:00 a.m.


July9 - 11 CFC Forum, New York

31 Board Meeting

Attachment #6

Updated 12/20/10

January JanuaryMargins from Contracts Report Corporate Balanced Scorecard ReportTypical Bill Comparison CEO Review - 4th quarter input due from BoardReport on ContributionsRental Income ReportRenewable Portfolio Standards GraphsCSI/AMI Project Update

February FebruaryCapital Construction Budget Report

March MarchAccounts Receivable Write-off CEO Self-Evaluation provided to the BoardSafety Committee MinutesCo-op Power & Regional Access Rate Changes

April AprilBudget Projection Update CEO Review Completed (prior year)Margins from Contracts Report Corporate Balanced Scorecard ReportTypical Bill Comparison Board to review CEO incentive payRental Income Report CEO Review - 1st quarter input due from BoardRenewable Portfolio Standards GraphsCSI/AMI Project Update

May April/MayCapital Construction Budget Report Board Strategic Planning Session

June/July JuneSafety Committee Minutes

July JulyBudget Projection Update Corporate Balanced Scorecard ReportMargins from Contracts Report CEO Review - 2nd quarter input due from BoardTypical Bill ComparisonReport on ContributionsRental Income ReportList of Authorized SignersRenewable Portfolio Standards GraphsInventory AdjustmentCSI/AMI Project Update

August AugustCapital Construction Budget Report

September September

Accounts Receivable Write-offSafety Committee Minutes

October OctoberBudget Projection Update Corporate Balanced Scorecard ReportMargins from Contracts Report CEO Review - 3rd quarter input due from BoardTypical Bill ComparisonRental Income ReportRenewable Portfolio Standards GraphsCo-op Power & Regional Access Rate ChangesCSI/AMI Project Update

November NovemberCapital Construction Budget Report Budget Approval

December DecemberSafety Committee Minutes

Quarterly Operational Reports

New Hampshire Electric Cooperative, Inc.Board Reporting Calendar

Strategic Events

CEO pay adjustment & incentive pay percentage

Attachment #7

Board Related Issues Tracking Report July 2011

Page 1 of 2

Item #

Item Person expressing initial interest

Person Responsible

Date Requested

Description Status Report Items Dropping off after

this month 1 Plug-In Vehicle Facility at

NHEC Earl Hansen Jim Bakas 3/31/09 It was requested that staff

investigate plug-in hybrids for NHEC, including the possible need for a plug-in facility at an NHEC location.

Staff is looking tentatively at the possibility of participating in the Regional Electric Vehicle Initiative.

2 Surveying & Use of Social Media Sites

Ken Colburn Dena DeLucca 10/27/09 It was suggested that NHEC review the issue of surveying members through cost effective approaches and the use of social media sites such as Facebook and Twitter.

NHEC has established a Twitter account to be used during major power outages. A Facebook page was created in mid-February. We will report to the Board through the President’s mid-month report or the Board Report as we advance with our knowledge and usage of Facebook.

3 Offset of Capital Credits for Bad Debt

Fred Anderson Fred Anderson/Mark Dean

3/30/10 How to best position NHEC to be able to recover accounts receivable, or not pay capital credits, to members owing us money.

A change to Board Policy B-32, Capital Credits, to reflect the statute of limitations requirement will be presented to the Corporate Services Committee at its July 26th

meeting and a bylaw amendment will be recommended going forward.

4 Strategic Planning Follow-ups

Fred Anderson 5/11/11 1. It was suggested that NHEC conduct a Culture Survey in 2011.

2. It was suggested that the Board update its self-evaluation review using the services of Caroline Fisher.

3. It was suggested that the Board have a discussion on expectations for director training.

4. It was suggested that NHEC consider obtaining a credit rating.

5. For the new program element

1. Human Resources is working with Caroline Fisher to schedule a Culture Survey in 2011. We will have an update at the July Board meeting.

2. Human Resources is working with Caroline Fisher on scheduling. We will discuss at the July Board meeting.

3. Board to establish guidelines for expectations for director training by year-end. Management will draft a

Attachment #7

Board Related Issues Tracking Report July 2011

Page 2 of 2

Item #

Item Person expressing initial interest

Person Responsible

Date Requested

Description Status Report Items Dropping off after

this month under S&ER which would allow for proposals on energy efficiency and/or technology projects, it was suggested we have a clear approval criteria.

6. It was suggested that we consider adjusting the equity target, as outlined in the Equity Management Plan, from 35-45% to 40-50%.

proposal for Board consideration by the end of the 3rd

4. There are a number of steps we need to take before completing this item. Timing for this process will also be a critical component. A proposal for obtaining a credit rating will be presented to the Board by year-end.

quarter.

5. Draft criteria was distributed at the May Board meeting and will be discussed at the July 21st

6. This item requires that the Board Policy and Equity Management Plan be revised. This will be addressed by the Corporate Services Committee beginning in the 3

Member Solutions Committee meeting.

rd quarter of 2011.

Attachment #8 NHEC DIRECTOR’S INFORMATION FOR FORM 990

2011 DIRECTOR _____________________________ MONTH ____________________________

(Print Name)

ACTIVITY PREPARATION TRAVEL TIME IN MEETING OR RELATED

FUNCTION

COMMENTS

Board Meeting Committee Meetings Training/Conferences E-Mail Phone Calls Tax Filings/990 Review Other Meetings/

Activities (i.e. reading, member interaction, check approval, internal controls, audit matrix, etc.)

Total Hours: (Estimate time to half hour increments

)

_____________________________

SIGNATURE

New Hampshire Electric Cooperative, Inc.

Monthly Report of Power Resources and Access Costs

For the Month of: June 2011Current Month Year-to-Date

NON-SKI POWER COST (Energy, Capacity, Related AncillariesNon-Ski Loads - Energy MWh $ $/MWh MWh $ $/MWh

Integrys/Macquarie Strips Contract 19,392 1,060,075$ 54.67$ 118,102 6,894,259$ 58.38$Nextera 1,424 57,285$ 40.23$ 28,914 1,268,556$ 43.87$Morgan Stanley Strips Contract 11,488 458,285$ 39.89$ 69,018 3,137,094$ 45.45$MacQuarie 2011 procurement 6,464 364,998$ 56.47$ 10,784 613,348$ 56.88$Net ISO Cost/(Credit) for Contracts - (41,978)$ (1.30)$ - (122,812)$ (0.57)$WMNH Rochester Contract 1,653 103,051$ 62.36$ 10,398 593,197$ 57.05$Less: ISO-NE Credit for Rochester (1,653) (74,030)$ (44.80)$ (10,398) (513,395)$ (49.37)$Beaver Ridge Wind 619 54,479$ 88.07$ 6,561 615,354$ 93.78$Less: ISO-NE Credit for Beaver Ridge (619) (22,980)$ (37.15)$ (6,561) (313,385)$ (47.76)$Braintree Electric 380 132,975$ 349.95$ 2,307 349,102$ 151.35$Less: ISO-NE Market Credit for Braintree (380) (35,600)$ (93.69)$ (2,307) (180,750)$ (78.36)$Indeck-Alexandria 2,442 136,451$ 55.89$ 2,442 136,451$ 55.89$Less: ISO-NE Market Credit for Indeck (2,442) (100,868)$ (41.31)$ (2,442) (100,868)$ (41.31)$Lempster Wind 449 23,189$ 51.60$ 3,574 187,134$ 52.36$Colebrook LFGTE & Misc Others 223 13,332$ 59.81$ 1,384 83,956$ 60.66$Less: Company Use (108) (7,365)$ (68.12)$ (1,043) (75,345)$ (72.24)$Remaining DA Market 9,155 406,034$ 44.35$ 63,473 3,329,760$ 52.46$Remaining RT Market 3,528 180,680$ 51.22$ 46,469 2,570,926$ 55.33$

NET non-ski Energy purchased 52,015 2,708,014$ 52.06$ 340,675 18,472,583$ 54.22$

Non-Ski - CapacityForward Capacity Load Obligation 167 957Less: Load Obligation Bilateral Physical Contracts (24) (146)Less: Self Supply (4) (63)Net Load Obligation 139 425,560$ 3,072.13$ 748 2,798,981$ 3,742.69$Less: Rochester 4.00 -$ -$ 28.50 83,734$ 2,938.02$Less: Real Time Emergency Generators 0.23 560$ 2,467.00$ 1.35 3,822$ 2,837.66$Less: Credit for Energy Efficiency 1.06 3,450$ 3,270.49$ 4.51 32,499$ 7,214.08$Misc Credits & Charges & Adjustments (2,737)$ (4,365)$Net ISO-NE FCM Charges 133 424,287$ 3,184.36$ 714 2,914,671$ 4,085.03$Plus: Transfer to Energy Efficiency SBC 1.06 3,450$ 3,270.49$ 4.51 32,499$ 7,214.08$Less: Financial Settled Credit for Lempster (0.44) (418)$ (945.00)$ (2.66) (2,419)$ (911.17)$Plus: Cost of Bilateral Physical 24 143,370$ 5,900.00$ 146 860,220$ 5,900.00$Plus: Cost of Bilateral Financial 70,000$ 195,000$Plus: Cost of Braintree Capacity 12 7,813$ 660.18$ 71 784,210$ 11,043.66$Less: Financial Settled Credit for Braintree (12) (31,280)$ (2,643.00)$ (12) (31,280)$ (2,643.00)$Plus: Cost of Colebrook Capacity 0.57 1,755$ 3,072.13$ 3.60 13,420$ 3,732.77$Plus: Payment to Speare for RTEG 170$ 1,156$Less: Transfer to Ski Areas (1.58) (4,867)$ (3,072.13)$ (10.93) (41,271)$ (3,775.63)$

NET non-ski Capacity purchased 157.14 614,282$ 3,909.12$ / MW 912.99 4,726,207$ 5,176.62$ / MW11.81$ /MWh 13.87$ /MWh

Other CostsISO Ancillary Costs 31,290$ 268,311$Misc ISO 18,583$ 117,068$Load Response Payments to Members 31,909$ 31,909$Uncollectible Expense 12,492$ 97,262$Administrative & General 109,549$ 712,232$

Total Ancillaries, Other ISO Costs and Administrative Costs 203,822$ 3.92$ / MWh 1,226,782$ 3.60$ / MWh

TOTAL Power Costs - without-ski - before renewables 3,526,118$ 67.79$ / MWh 24,425,571$ 71.70$ / MWh

CONFIDENTIAL! Attachment #9

NHEC Board Report 1 Printed on 7/12/2011



For the Month of: June 2011


Current Month Year-to-DateRenewable Energy Certificates & ComplianceRenewable Portfolio Compliance MWh $ $/MWh MWh $ $/MWh

Class IRenewable Energy Certificates 930 28,985$ 6,979 189,658$Alternate Compliance Payments I - -$ - -$

Total Class I Compliance 930 28,985$ 31.17$ 6,979 189,658$ 27.18$

Class IIRenewable Energy Certificates 40 612$ 279 10,786$Alternate Compliance Payments I - -$ - -$

Total Class II Compliance 40 612$ 15.17$ 279 10,786$ 38.66$

Class IIIRenewable Energy Certificates 3,024 66,528$ 22,686 498,560$Alternate Compliance Payments I - -$ - -$

Total Class III Compliance 3,024 66,528$ 22.00$ 22,686 498,560$ 21.98$

Class IVRenewable Energy Certificates 496 13,070$ 3,484 91,801$Alternate Compliance Payments I - -$ - -$

Total Class IV Compliance 496 13,070$ 26.35$ 3,484 91,801$ 26.35$Total Renewable Portfolio Compliance 4,490 109,195$ 24.32$ 33,428 790,804$ 23.66$

Additional for Renewable Corporate Goals = Losses Over & AboveClass I 124 4,152$ 129 4,325$Class II 5 179$ 15 537$Class III - -$ - -$Class IV 33 861$ 98 2,582$

Total Additional for Renewable Corporate Goals 161 5,191$ 32.15$ 242 7,444$ 30.73$Co-op Renewable Choice Program Net (Gain)/Loss 56 (471)$ (8.43)$ 314 (3,363)$ (10.72)$(Gain)/Loss on Sale of Excess RECs -$ -$

Renewables A&G & Misc 2,986$ 22,639$

Less: Transfer RECs to Ski (1,413)$ (29,525)$

Total Renewable Costs to Non Ski Coop Power 115,489$ 2.22$ / MWh 788,000$ 2.31$ / MWh

Total Costs for Coop Power without Ski Areas 52,015 3,641,607$ 70.01$ / MWh 340,675 24,982,192$ 73.33$ / MWh

TOTAL Ski Power Costs incl. renewables 563 39,627$ 70.39$ / MWh 13,677 909,778$ 66.52$ / MWh

Total Costs for Coop Power incl Ski Areas 52,578 3,681,234$ 70.01$ / MWh 354,352 25,891,970$ 73.07$ / MWh

Renewable Certificates Held for Future UseClass I 185 7,328$ 39.53$ /MWh 5,471 170,889$ 31.23$ /MWhClass II 150 5,934$ 39.68$ /MWh 321 15,244$ 47.54$ /MWhClass III - -$ -$ /MWh (70) (1,540)$ 22.00$ /MWhClass IV 1,621 42,722$ 26.35$ /MWh 2,924 77,047$ 26.35$ /MWh

Total Renewable Certificates Held for Future Use 1,956 55,984$ 8,646 261,640$Note: Negative Year to Date Balances reflect RECs not yet received/purchased.






REGIONAL ACCESS COSTSISO Regional Network Service 618,147$ 4,615,324$Other ISO Costs/Credits 427$ (9,234)$NU Local Network Service (net of annual true-up) (755,316)$ (514,122)$NGrid Local Network Service 3,836$ 28,635$CV Local Network Service 11,883$ 60,359$VELCO Local Network Service 648$ 4,339$PSNH Interconnection & Delivery Service 155,345$ 936,281$Colebrook LFTGE Allocated to Regional Access 2,074$ 12,313$Logica & Related Access Costs 12,011$ 62,021$Other Administrative & General Costs 23,044$ 95,469$Uncollectible Expense - TA 3,383$ 24,611$

TOTAL Regional Access Costs 75,482$ 1.44$ / MWh 5,315,995$ 15.00$ / MWh

$79.

66

$80.

85

$82.

16

$83.

02

$82.

63

$82.

35

$81.

69

$81.

12

$80.

07

$78.

98

$78.

53

$78.

10

$76.

89

$72.00

$74.00

$76.00

$78.00

$80.00

$82.00

$84.00

Jun-

1 0

Jul-1

0

Aug

-10

Sep -

10

Oc t

-10

No v

-10

De c

-10

Jan-

1 1

Feb-

11

Mar

-11

Apr-1

1

May

-11

Jun-

11

Energy & Capacity - Wholesale Cost Per MWh - Rolling 12 Months






Total Monthly Power Costs

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Rochester Integrys/MacQuarie Morgan Stanley Nextera MacQuarie 2011 Braintree EnergyIndeck Beaver Ridge Lempster Colebrook LFGTE & Misc Net ISO-NE Energy CapacityAncillary & Misc ISO Renewable Administrative

Monthly Power Cost Percentages

-10%

10%

30%

50%

70%

90%


Rochester Integrys/MacQuarie Morgan Stanley Nextera MacQuarie 2011 Braintree EnergyIndeck Beaver Ridge Lempster Colebrook LFGTE & Misc Net ISO-NE Energy CapacityAncillary & Misc ISO Renewable Administrative






Total Monthly MWH Purchased

(2,500)

9,500

21,500

33,500

45,500

57,500

69,500


Rochester Integrys/MacQuarie Morgan Stanley Nextera MacQuarie 2011 BraintreeBeaver Ridge Indeck Lempster Colebrook LFGTE & Misc Net ISO-NE Energy

Monthly MWH Percentages

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Rochester Integrys/MacQuarie Morgan Stanley Nextera MacQuarie 2011 Braintree Beaver Ridge Indeck Lempster Colebrook LFGTE & Misc Net ISO-NE Energy



Monthly Report of Coop Power Costs & RecoveryComparison to Rate Forecast

Actual Actual Actual Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast2011 2011 2011 2011 2011 2011 2011 2011 2011 2012 2012 2012April May June July August Sept October November December January February March

As Forecast as of April 1, 2011 rate change

Beginning Recovery Balance (310,177)$ (802,634)$ (672,141)$ (334,485)$ (45,502)$ 202,864$ (599,763)$ (500,000)$ (447,311)$ (262,752)$ (360,737)$ 501,927$

Revenues 4,121,933$ 3,365,808$ 3,440,498$ 4,087,728$ 3,995,273$ 4,484,417$ 3,467,764$ 3,928,495$ 4,872,913$ 6,053,234$ 5,129,555$ 4,734,067$

Costs:Energy Contracts 1,812,204$ 1,891,744$ 2,008,115$ 2,691,247$ 2,702,913$ 1,852,099$ 1,845,568$ 2,177,357$ 2,710,766$ 1,584,111$ 1,616,629$ 1,558,872$ISO Market Energy 832,338$ 646,172$ 769,210$ 652,601$ 248,926$ 805,299$ 735,355$ 817,838$ 1,222,831$ 3,271,848$ 2,560,307$ 1,641,573$Capacity 680,844$ 680,844$ 709,423$ 708,857$ 983,582$ 708,326$ 707,870$ 707,870$ 708,326$ 707,865$ 1,469,532$ 708,454$Renewables 127,325$ 105,539$ 112,476$ 132,432$ 126,262$ 137,793$ 109,792$ 106,423$ 219,931$ 193,095$ 164,046$ 142,976$Other ISO & Misc Costs 66,590$ 64,996$ 71,697$ 81,834$ 72,518$ 66,931$ 61,590$ 64,547$ 84,232$ 88,592$ 72,267$ 68,925$Administrative 110,176$ 107,005$ 107,231$ 109,739$ 109,437$ 111,341$ 107,351$ 107,149$ 111,386$ 109,739$ 109,437$ 111,341$

Total Costs 3,629,477$ 3,496,301$ 3,778,154$ 4,376,711$ 4,243,638$ 3,681,789$ 3,567,527$ 3,981,184$ 5,057,472$ 5,955,250$ 5,992,218$ 4,232,141$

Ending Recovery Balance (802,634)$ (672,141)$ (334,485)$ (45,502)$ 202,864$ (599,763)$ (500,000)$ (447,311)$ (262,752)$ (360,737)$ 501,927$ (0)$

Actual Results & Updated Forecast

Beginning Recovery Balance (597,810)$ (1,361,413)$ (1,014,515)$ (937,883)$ (733,677)$ (384,165)$ (1,149,760)$ (1,100,074)$ (870,136)$ (402,457)$ (685,188)$ 74,644$

Revenues 4,163,654$ 3,329,745$ 3,529,391$ 4,087,667$ 3,995,215$ 4,484,356$ 3,467,713$ 3,711,062$ 4,603,133$ 5,743,027$ 4,870,136$ 4,483,479$

Costs:Energy Contracts 1,762,954$ 1,915,745$ 2,267,670$ 3,144,372$ 3,440,722$ 2,191,871$ 2,020,664$ 2,347,906$ 3,294,433$ 2,650,334$ 2,381,881$ 2,083,387$ISO Market Energy 748,282$ 558,124$ 404,761$ 135,772$ (367,541)$ 521,644$ 527,838$ 622,542$ 659,669$ 1,739,751$ 1,453,996$ 1,079,483$Capacity 643,550$ 644,036$ 614,282$ 683,229$ 958,695$ 683,025$ 682,983$ 682,983$ 683,025$ 683,031$ 1,444,701$ 683,153$Renewables 131,349$ 105,241$ 115,489$ 133,603$ 127,783$ 139,334$ 110,744$ 107,390$ 226,057$ 189,288$ 165,615$ 144,745$Other ISO Costs 41,881$ 58,163$ 81,782$ 81,699$ 72,187$ 68,121$ 64,356$ 69,566$ 92,817$ 84,693$ 70,895$ 68,472$Administrative 72,036$ 395,334$ 122,041$ 113,199$ 112,881$ 114,767$ 110,814$ 110,613$ 114,812$ 113,199$ 112,881$ 114,767$

Total Costs 3,400,051$ 3,676,643$ 3,606,023$ 4,291,873$ 4,344,727$ 3,718,761$ 3,517,398$ 3,941,000$ 5,070,812$ 5,460,296$ 5,629,968$ 4,174,007$

Ending Recovery Balance (1,361,413)$ (1,014,515)$ (937,883)$ (733,677)$ (384,165)$ (1,149,760)$ (1,100,074)$ (870,136)$ (402,457)$ (685,188)$ 74,644$ (234,829)$

Variances

Beginning Recovery Balance 287,633$ 558,779$ 342,374$ 603,398$ 688,175$ 587,029$ 549,996$ 600,074$ 422,825$ 139,705$ 324,452$ 427,283$

Revenues (41,720)$ 36,063$ (88,893)$ 60$ 57$ 61$ 51$ 217,433$ 269,780$ 310,207$ 259,419$ 250,588$

Costs:Energy Contracts 49,251$ (24,001)$ (259,555)$ (453,125)$ (737,809)$ (339,772)$ (175,095)$ (170,548)$ (583,667)$ (1,066,224)$ (765,252)$ (524,515)$ISO Market Energy 84,056$ 88,047$ 364,449$ 516,829$ 616,467$ 283,655$ 207,517$ 195,296$ 563,162$ 1,532,097$ 1,106,310$ 562,091$Capacity 37,294$ 36,808$ 95,142$ 25,628$ 24,887$ 25,301$ 24,887$ 24,887$ 25,301$ 24,834$ 24,831$ 25,301$Renewables (4,024)$ 299$ (3,012)$ (1,170)$ (1,521)$ (1,541)$ (952)$ (967)$ (6,126)$ 3,807$ (1,569)$ (1,770)$Other ISO Costs 24,709$ 6,833$ (10,084)$ 136$ 331$ (1,189)$ (2,766)$ (5,019)$ (8,585)$ 3,899$ 1,372$ 453$Administrative 38,140$ (288,329)$ (14,809)$ (3,460)$ (3,443)$ (3,426)$ (3,462)$ (3,464)$ (3,425)$ (3,460)$ (3,443)$ (3,426)$

Total Costs 229,426$ (180,342)$ 172,131$ 84,838$ (101,089)$ (36,972)$ 50,129$ 40,184$ (13,340)$ 494,954$ 362,250$ 58,134$

Ending Recovery Balance 558,779$ 342,374$ 603,398$ 688,175$ 587,029$ 549,996$ 600,074$ 422,825$ 139,705$ 324,452$ 427,283$ 234,829$

Note: See next page for explanation of variances (positive # is lower than actual - i.e. bad for revenue, but good for expense)


NH Electric Cooperative - Board Report 6 Printed on 7/12/2011

New Hampshire Electric Cooperative, Inc.Monthly Report of Coop Power Costs & RecoveryComparison to Rate Forecast

Explanation of Variances

Beginning Balance Over recovery balance more than forecast due to cumulative effect of decreased costsand higher kWh sales in prior periods.

Revenues June revenue $89K more than forecast because kWh sales were higher than forecast this month.This includes the net effect of the competitively supplied sales.

Energy Contracts Higher than forecast due to start of Indeck contract which was not included in original forecast.Also, Braintree invoice included catch-up for RGGI costs since 2009.

ISO Market Energy June actual lower than forecast due to decreased need for marginal power with start of new Indeck contract.

Capacity June $95k less than forecast due to conservative forecast for the Net Regional Clearing Price

Renewables Actuals approximately equal to forecast.

Other ISO Costs Higher than forecast due to payments to members participating in ISO-NE's price response programs.This is an annual payment.

Administrative Higher than forecast due to $32K for CFC letter of credit fees in June.

Attachment #9

NH Electric Cooperative - Board Report 7 Printed on 7/12/2011

Attachment #10CONFIDENTIAL

NHEC Class I Obligations* & Resources(Signed and In Negotiations as of 7/11/11)

(All generation shown net of sales and carryforward amounts)

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

MW

h

Co-op RenewableChoice

Class I Over & above

Class I -- post-1/1/2006non-solar PV

AlternativeCompliance

Carryforward

Member sited

Jericho Wind

Concord Steam

Colebrook Landfill

Beaver Ridge Wind

Lempster Wind

NHEC Class II Obligations & Resources(Signed and In Negotiations as of 7/11/11 plus forecast member sited)

0

500

1000

1500

2000

2500

3000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

MW

h

Class II Over &Above

Class II -- new solar


Member sited

2011 Vintage

2010 Vintage

2009 Vintage

Page 1 of 2

NHEC Class III Obligations & Resources(Signed and In Negotiations as of 7/11/11)

0

10000

20000

30000

40000

50000

60000

70000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

MW

h

Class III Over &Above

Class III -- existingbiomass andmethane


Carryforward

CMEEC

Gas RecoverySystem

Ridgewood RILandfill

NHEC Class IV Obligations & Resources(Signed and In Negotiations as of 7/11/11)

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

MW

h

Class IV Over &Above

Class IV -- existingsmall hydro


Carryforward

West Springfield andBenton Falls Hydros

Page 2 of 2

Attachment #11

In 2008, NHEC embarked on a comprehensive, strategic action plan to implement a $30 million telecommunication and advanced

metering infrastructure improvement project. As part of that initiative we submitted an application to DOE for a Smart Grid Investment Grant (SGIG) which was awarded in March of this year. The total project is approximately $35 million, of which

DOE will reimburse 45% or just over $15 million of the total costs. This report highlights the SGIG project only and does not include Land Mobile Radio (LMR) which is in addition to the SGIG.

Communications System Infrastructure (CSI) We are continuing to secure permits for our tower sites. Most recently, we received the Town of Windsor, Vermont, Zoning Board and the State of Vermont, Act 250 Land Use Permits for our proposed use of the existing tower on Mt. Ascutney. We continue to work with SBA and the U.S. Forest Service to secure the permit for our new facilities planned at the Mt. Tecumseh tower site. Green Mountain Communications, Inc., (GMCI) our microwave (MW) vendor has placed the order for our MW radios and we are awaiting delivery to commence deployment. Delivery is expected between late July and mid-August. Our fiber optic deployment contractor, Eustis Cable Enterprises (ECE), has completed deployment and all of the testing for the fiber optic cable from Plymouth to Meredith and in Colebrook including the “reverse direction” testing from Tenney Mountain to HQ. ECE’s contract for deployment has been successfully completed and we are awaiting their request for Final Payment to formally conclude that work. GMCI has also been selected as the vendor to install four new towers, shelters and generators at our Raymond, Alton, Ossipee and Conway Districts. Subsurface boring and geotechnical evaluations are being conducted as part of the selected vendor’s work to construct new towers, shelters and generators at these locations.

FiberNext (FN) our vendor for several fiber optic-related work elements has completed fiber cable terminations in equipment racks at several locations including the Pemi NOC, HQ NOC, Fairgrounds & Meredith substations (for connections to AMI meter-mesh Gatekeepers) and the equipment shelter at the Gilman Hill Tower site. They will complete fiber terminations at Tenney Mountain and the Meredith District when communications shelters are installed at those locations. We have completed negotiations and have a purchase and sale agreement to purchase an existing shelter and generator at the Gilman Hill tower site. Plans and Reports The DOE site visit team met with our CSI /AMI team in Plymouth on July 6th

. After receiving an update on our project status in the morning, the DOE team toured some of our SGIG deployed assets in the field. They exhibited keen interest in our SGIG project, asked good questions and seemed pleased with our presentation and responses.

We continue to file monthly and quarterly reports to both DOE and the Federal Office of Management and Budget (OMB) as required. We also continue to receive prompt payments from DOE in response to our requests for reimbursements. The prompt payments continue to minimize the amount of financing we need to do for the “Federal Share” of project costs.

New Hampshire Electric Cooperative, Inc. June 30, 2011

CSI/AMI PROJECT UPDATE

Attachment # 12

Attachment #11

Advanced Metering Infrastructure (AMI) Financial Tracking and Reporting

We created and authorized purchase orders to procure meters, gatekeepers and other essential equipment for deployment. We have adopted methods to requisition, purchase, receive and invoice for materials and contractual agreements and do reconciliation on invoices and payments with Finance and Project Managers. Finance team also submitted required DOE financial information for expenses incurred and reimbursement requests.

Deployment:

New Hampton is the location of the warehouse to store meters and other equipment to be installed by Utility Partners of America (UPA). A process was developed to load meter routes for the installation technicians and at the end of June, we have installed over 1,000 meters and 2 gatekeepers using the fiber infrastructure to import the information back to headquarters.

The meter data is then imported from the Master Station into the Meter Data Management system for validation by cycle and imported into our Customer Information System (iVue CIS) for billing.

We installed a primary and backup Master Station system for importing interval meter data. Training on this system was conducted at the end of June for employees who will administer the new meter program. Also, some installers were trained on using the hand-held units for setting up meters. We developed a process for staking and installing gatekeepers on poles and have a cross-functional team looking at schedules to complete this work over the course of the project.

NHEC engaged Vanticore, LLC to install network switches along the fiber route. These switches will be located in a few substations and headquarter locations to transmit meter data over the fiber network back to the Master Station.

Meter Data Management

This system will be used to store interval read data for billing and usage reporting (build and impact metrics). We completed the scoping of interfaces need to connect to other systems such as our Outage Management system, Customer Information system and Load Management system. These interfaces will provide the means to automatically bill or connect meters, or notify of outage events. Members will be able to see

their hourly usage from this system from our website. Project is estimated to be about 30% complete.

Mid-Tier Communications

NHEC is working with vendors to establish a communications methodology between the Elster gatekeepers (which stores the meter information) and “take out” points on our microwave backbone system. These “take out” points will be located on tower sites, district offices and substations. Once the information is delivered to one of these sites, it can be passed back to the AMI Master Station located at Headquarters.

Storage Area Network(s) – SAN’s

Vanticore, LLC has partnered with NHEC to install two large disk storage arrays that can store up to 36 TB (terabytes) to handle the demand to store more meter information and other security event logging data over the coming years. Installation will begin in early July.

Marketing/Public Relations Working with M5 to develop and assist in the communications of the AMI project to our members. We have developed a process to create files for meters to be installed and creating letters to be sent to members advising them of our schedule, currently based on billing cycle routes. To improve communications to our members, we have created a webpage on our website www.nhec.coop/ami

that provides information on the AMI project.

Process and Training

The Process and Training team has identified key business process changes around how meters will be installed including make ready work or line design requirements and documenting for training purposes changes to business practices.

Cyber Security

NHEC has purchased a security event and logging system to monitor real time activity on all equipment (including the ability to manage access controls and equipment failures) and systems software. This will also provide real time information on environmentals such as heating, cooling, system availability, system performance, etc.

http://www.nhec.coop/ami�

Attachment #11

Dynamic Pricing

The team has been working with consultant RW Beck/SAIC to analyze our cost and load data as the preliminary steps to designing dynamic rates. Currently, the team anticipates proposing two rates to test: one a time of use rate and the other a time of use rate with critical peak pricing component. The analysis and rate design will continue through the summer. Board review and ultimately, approval of the rate structure, is anticipated in the fall (in advance of soliciting member volunteers).

Each of the 2,000 volunteers will receive an in-home display (IHD) in accordance with the grant. An RFP is being finalized to procure IHDs, the related back office system to drive them and the installation. Responses to

the RFP are expected in August with a vendor selectmen made in early fall. IHDs and the related systems would be installed during the first quarter of 2012.

Member volunteer solicitations will be sent to qualified residential members among the first 30,000 meters to be installed. We expect that to happen in the winter months (November through January). Designing that process is the next phase of the overall rates and program project.

The rates and program team is on schedule to begin the new rates coincident with the regular May 1, 2012 co-op Power and Regional Access Charge changes (pending board approval).

P roject F ina ncia ls

To date, the CSI/AMI project has resulted in expenditures of approximately $2.2M. NHEC has submitted requests for reimbursement from DOE of the federal share of the total project costs. Please note that NHEC’s project costs do not include in-house labor. The Financial Tracking & Reporting team reviews all expenditures, establishes internal controls and ensures proper allocation. DOE reimbursement funds go into a separate account established specifically for the investment grant funds. That account is maintained at Citizens Bank. Funds are transferred to this account from DOE. NHEC transfers the funds from this account to pay down the line of credit and/or pay other expenditures as appropriate.

SGIG Current Financials August 6, 2009 – June 30, 2011

Total Expenses: $ 2,186,941.93 NHEC share: $ 1,202,818.06 Federal share: $ 984,123.87 Amount reimbursed by DOE: $ 890,333.19 Amount in the pipeline: $ 93,790.68

NCSC Line of Credit (LOC) Status Balance on LOC: $0 Available Funds: $20 million

Attachment #12 Approved

July 19, 2011

1 | P a g e

New Hampshire Electric Cooperative Delivery Services Safety Committee

Meeting Minutes Thursday, June 2, 2011 579 Tenney Mountain Highway Plymouth, New Hampshire Attendees: Tim Ainsworth Safety Manager Plymouth James E. Horan III Safety Administrator Plymouth Bill MacLean Accounting Supervisor Plymouth Don Gray Line Worker Conway Mark Monahan Line Worker Plymouth Pete McKinley Line Worker Raymond Josh Maineri Line Worker Meredith Bruce Gosselin Line Worker Sunapee A.J. O’Hara Line Worker Alton Fawn Stickney Meter Technician Plymouth

Safety Committee Mission Statement

The “Mission” of the Office and Delivery Services Safety Committee is to foster a safe and healthy work environment for all employees. We will accomplish our mission through the following processes:

Identify safety needs and job hazards to develop safe work practices Develop, institute, review and revise safety rules Review and evaluate accidents to determine cause and develop preventative measures Ensure continuous updates and education

Tim Ainsworth called the meeting to order at 9:20 AM and recommended that committee members review the previous meeting minutes. Tim Ainsworth made a motion to accept the April 2011 Delivery Services Safety Committee minutes. The motion was seconded by Bruce Gosselin, and Pete McKinley. Tim Ainsworth reviewed all occupational, motor vehicle and operational incidents that had occurred between March and May 2011. The committee discussed the Chairperson position as Joe Stewart has moved from the District Representative position in Wolfeboro into the Control Center. Tim Ainsworth will discuss with Joe


July 19, 2011

2 | P a g e

Stewart if he is interested and/or available to continue participating with the Delivery Services Safety Committee. Josh Maineri agreed to fill the committee Co-chair position. Tim Ainsworth reviewed highlights for the upcoming 2011 NHEC Safety Fair. Old Business:

1) Jim Horan reviewed with committee members the ongoing concerns with cell phones deployed in the

field. Jim noted that a Cell Phone Committee has been formed, and he is asking for two representatives

from the Delivery Services Committee to volunteer participation with the group and become involved

with reviewing several options available that may help in improving cell phone reception and

functionality in the line trucks. Josh Maineri volunteered and Pete McKinley stated that he would ask if

anyone from the Raymond District would be interested in volunteering. Jim also noted that several

options are becoming available through various vehicle manufacturers which interact with the

“Bluetooth” feature of many cell phones. Bill MacLean noted that that if any new equipment is being

considered for deployment during 2010, a business case should be prepared which outlines pending

issues, as well as potential resolutions.

New Business:

1) Fawn Stickney has been trialing a new style Arc Rated face shield manufactured by Salisbury. The new

style Salisbury face shield has a weight centering feature that better balances the shield when

positioned above the head, is rated at 12 cal/cm² or HRC-2, consistent with the NHEC FR Clothing

Program requirements , has an enhanced viewing area and absorbs 99.9% of the UV radiation created

during a potential arc flash event. Fawn and several other Meter Shop employees have had an

opportunity to try the shield with all having positive comments when compared to the current face

shield being used in the field.

Committee members viewed the face shield/ hard hat combination and recommended a migration to

the new style for use when pulling meters in accordance with NHEC Safety Procedures.

2) Josh Maineri brought literature to the meeting with information on a “Staple Stick” and Jim Horan had

a sample of the staple holder that is currently available through the Warehouse. The “Staple Stick” is a

device that may be pre-loaded with staples used when attaching vertical ground wire on a pole. The

tool allows a worker to hold staples in such a manner that protects a workers hand and rubber

insulating gloves while attaching staples while working aloft. A version of the staple holder has been

available through the Warehouse with the Committee recommending that it be added to the Tool List.

3) Jim Horan showed the committee members a product manufactured by Raychem that is designed to be

used in conjunction with Hendrix splices. The Raychem Gel-wrap is a small, gel filled closure that may


July 19, 2011

3 | P a g e

be used in both aerial and buried applications and is effective in protecting the splice from moisture.

The committee agreed that the product looked feasible for use in the field and would like to see it

available through the Warehouse. Jim stated that he would check with Jay Hutchison to verify the

feasibility for ruse on the NHEC system.

4) Josh Maineri asked a question regarding use of personal vehicle when on Cooperative business. Jim

Horan referred Josh to the NHEC Procedures for guidance on use of motor vehicles (NHEC Procedure

# 273.00 – Assignment and Use of Co-op Vehicles and Use of Personal Vehicles)

5) Jim Horan reviewed the general circumstances involved with a recent pole climbing accident where a

line worker fell from a pole while completing a Pole Top Rescue training exercise. Bill MacLean

mentioned that he had heard there was some difficulty in contacting the employee’s immediate family.

The committee discussed possible options to updating Employee Emergency Contact information,

while remaining within HIPPA guidelines. The Safety Department will discuss the committee’s

concerns with the HR Department in an effort to ensure all employee emergency contact information is

up to date.

Quarterly Safety Reminder

Be aware of Poison Ivy, there’s plenty around this year.

Jim Horan moved to adjourn the meeting at 10:42 AM, seconded by Pete McKinley.

2011 Safety Committee(s) Meeting Schedule

The NHEC Delivery Services and Office Safety Committees will meet during 2011 on the following dates. Delivery Services Committee meets from 9:15 AM – 10:45 AM, and the Office Safety Committee will meet from 11:00 AM – 12:00 PM All meetings are scheduled for 579 Tenney Mountain Highway, Plymouth, NH. Headquarters Building, Main Conference Room. The next Delivery Services Safety Committee meeting is scheduled for:

Thursday, September 1, 2011

December 1, 2011 (Joint Committee Meeting)

Attachment #13 Approval

July 19, 2011

1 | P a g e

New Hampshire Electric Cooperative Office Safety Committee

Meeting Minutes Thursday, June 2011 579 Tenney Mountain Highway Plymouth, New Hampshire Attendees: Tim Ainsworth Safety Manager Plymouth James E. Horan III Safety Administrator Plymouth Linda Lyden Consumer Account Rep. Plymouth Bill Vecchio Key Account Executive Plymouth Kristina Lonigro Member Solutions Rep. Plymouth Mike Reynolds Program Administrator Plymouth Sandra Smith Business & Technology Admin. Plymouth Terry Kitto Facilities Coordinator Plymouth

Safety Committee Mission Statement

The “Mission” of the Office and Delivery Services Safety Committee is to foster a safe and healthy work environment for all employees. We will accomplish our mission through the following processes:

Identify safety needs and job hazards to develop safe work practices Develop, institute, review and revise safety rules Review and evaluate accidents to determine cause and develop preventative

measures Ensure continuous updates and education

Bill Vecchio opened the meeting at 11:10 AM and asked committee members to review minutes from the April 2011 meeting. Sandy Smith made a motion to accept the minutes, seconded by Kristina Lonigro. Tim Ainsworth reviewed all occupational, motor vehicle and operational incidents that had occurred between March and May 2011.

Attachment #13 Approval

July 19, 2011

2 | P a g e

Old Business:

1) There were no pending, old business topics to discuss at this meeting. New Business:

1) Terry Kitto informed the committee that recent work had been completed on the front walk

way to the HQ building. The work included removal of the old, concrete pavers and the

installation of a new asphalt walkway and reconfiguring of the lawn area to eliminate the

possibility of vehicles being pared in front of the main doorway.

2) Jim Horan briefly reviewed the general circumstances involving the recent pole climbing

incident. 3) Tim Ainsworth reviewed information on the upcoming 2011 Safety Fair and discussed that

this year’s event would be scheduled over a two day period offering an opportunity for

participation by more of the outlying Districts.

Monthly Safety Reminder

Stay hydrated; be aware during the warm, humid weather. Storm preparedness – Be Prepared

Sandy Smith made a motion to adjourn the meeting, seconded by Mike Reynolds.

2011 Safety Committee(s) Meeting Schedule

The NHEC Delivery Services and Office Safety Committees will meet during 2011 on the following dates. Delivery Services Committee meets from 9:15 AM – 10:45 AM, and the Office Safety Committee will meet from 11:00 AM – 12:00 PM All meetings are scheduled for 579 Tenney Mountain Highway, Plymouth, NH. Headquarters Building, Main Conference Room. The next Office Safety Committee meeting is scheduled for:

Thursday, September 1, 2011

December 1, 2011 (Joint Committee Meeting)

Documents

NHEC Board of Directors Agenda · 2016-12-28 · 5 Pursuant to proper notice duly mailed to all Directors, the regular meeting of the Directors of the 6 New Hampshire Electric Cooperative,