Dokiman ki tache

UTILITY COMMITTEE AGENDA FEBRUARY 9, 2015 - 5:15 P.M. CITY HALL COUNCIL CHAMBERS 15 LOOCKERMAN PLAZA DOVER, DELAWARE PUBLIC COMMENTS ARE WELCOMED ON ANY ITEM AND WILL BE PERMITTED AT APPROPRIATE TIMES. WHEN POSSIBLE, PLEASE NOTIFY THE CITY CLERK (736-7008 OR E-MAIL AT CITYCLERK@DOVER.DE.US) SHOULD YOU WISH TO BE RECOGNIZED. AGENDA ADDITIONS/DELETIONS 1. REIMBURSEMENT AGREEMENT WITH PIONEER MATERIALS - ABANDONMENT OF SHALLOW WELL #7A (STAFF RECOMMENDS AUTHORIZING THE CITY MANAGER TO EXECUTE THE REIMBURSEMENT AGREEMENT) 2. QUARTERLY REVIEW OF UTILITY RELATED CAPITAL INVESTMENT PLAN (CIP) (ELECTRIC AND WATER/WASTEWATER) (OCTOBER, NOVEMBER, AND DECEMBER) (COMMITTEE ACTION NOT REQUIRED) 3. TEA/NAES REPORT (DECEMBER) (STAFF RECOMMENDS ACCEPTANCE OF THE REPORT) 4. UPDATES (COMMITTEE ACTION NOT REQUIRED ON THE BELOW ITEMS) A. GARRISON OAK TECHNICAL PARK PROJECT UPDATES A-1. CITY INFRASTRUCTURE A-2. CALPINE ENERGY CENTER A-3. DOVER SUN PARK 5. ADJOURNMENT BY 5:40 P.M. /TM S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\COMMITTEE-AGENDAS\2015\02-09-2015 UTILITY.WPD THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS.

ACTION FORM PROCEEDING: Utility Committee AGENDA ITEM: DEPARTMENT OF ORIGIN: Public Works DATE SUBMITTED: 01/30/15 PREPARED BY: Sharon J. Duca, P.E., Public Works Director / City Engineer SUBJECT: Reimbursement Agreement – Abandonment of Shallow Well 7A REFERENCE: N/A RELATED PROJECT: N/A APPROVALS: City Manager EXHIBITS: Reimbursement Agreement, Estimates, Aerial Exhibit EXPENDITURE REQUIRED: $ N/A AMOUNT BUDGETED: $ N/A FUNDING SOURCE (Dept./Page in CIP & Budget): N/A TIME TABLE: Agreement will be accepted and well will be abandoned upon action by City Council. RECOMMENDED ACTION: Acceptance and authorization for the City Manager to execute the reimbursement agreement. BACKGROUND AND ANALYSIS In December of 2007, Pioneer Materials (formerly known as Tilcon) was performing dredging operations at their quarry on Long Point Road. Within the property in question, the City of Dover (City) owns a water production well and associated water main that provides water to our water treatment plant, which is adjacent to the Pioneer property. The City has an easement agreement with Pioneer to utilize said lands for the use of said infrastructure. During the operations in 2007, Pioneer excavated into the easement with the City and undermined the water supply line, electrical line and communication line for well 7A, rendering the well, its support equipment and alarms inoperable. Due to the limited amount of stable land remaining in the vicinity of the encroachment, restoring the well is not a feasible solution. Following this event, representatives of Pioneer voiced a concern that the City’s water line may not have been within the City’s easement. A survey was subsequently performed by Compass Point Associates. That survey indicated that the City’s lines are within the easement. Pioneer accepted the easement findings and began negotiating with the City on a reimbursement agreement. The City obtained two (2) estimates from A.C. Schultes; the first was to abandon the well only, the second was to abandon the well as well as remove the piping and vault. Pioneer reviewed the two (2) estimates and believed the second option was best suited for their long term plans. Pioneer has accepted the attached agreement as written. Please note that if the City chooses to replace the well, Pioneer is required to provide compensation in the amount of $50,000 for the construction of the new well. Due to the above, the City of Dover Department of Public Works requests acceptance of this agreement and authorization for the City Manager to execute.

AGREEMENT FUNDING FOR SHALLOW WELL 7A ABANDONMENT This AGREEMENT made this _____ day of __________ 2014 by and between the City of Dover, a Delaware Municipal Corporation, whose address is 15 Loockerman Plaza, P.O. Box 475, Dover, Delaware 19903-0475 (hereinafter referred to as the CITY), and Pioneer Materials, whose address is 880 Long Point Road, Dover, Delaware, 19901 (hereinafter referred to as PIONEER). WITNESSETH: WHEREAS, PIONEER provides the CITY the amount of $13,126.00 prior to authorizing the following CITY project: 1. Abandonment of Shallow Well 7A, including Piping and Vault Removal, scheduled to begin in FY 2015 (July 1, 2014 – June 30, 2015). WHEREAS, the purpose of these monies is to provide compensation to the CITY for properly abandoning the existing, inoperable Well 7A, in lieu of PIONEER providing the required services for abandoning Well 7A. WHEREAS, this abandonment falls within the limits of a CITY operational project rather than a private construction project. Now therefore, CITY and PIONEER, for and in consideration of the mutual covenants hereinafter stipulated to be kept and performed, agree as follows: SECTION I PIONEER agrees to the following terms: A. PIONEER is directly responsible for the inoperability of Shallow Well 7A due to the undermining of land near the well. B. PIONEER will provide the CITY reimbursement in the amount of $13,126.00 within thirty (30) days after project completion of the Shallow Well 7A Abandonment. C. PIONEER shall be required to provide the CITY additional compensation up to $50,000 for the construction of a new well if one can be constructed within ten (10) years, which began in December of 2007. The location of the well shall be limited to the Columbia aquifer and within proximity of the existing distribution mains that feed the existing water treatment plant on Long Point Road. A-1

SECTION II CITY agrees to the following terms: A. CITY will provide appropriate notice to PIONEER when the Shallow Well 7A Abandonment project begins and finishes. B. CITY will provide appropriate notice and/or justification to PIONEER if the Shallow Well 7A Abandonment project is delayed. C. CITY will indemnify, defend, and save harmless PIONEER from such claims, damages, litigation, and liabilities that result from, arise out of, or are caused by, and only to the extent of, CITY’s acts or omissions or the acts or omissions of CITY’s subcontractors or agents. D. In consideration of the sum of $13,126.00, to be paid hereunder, CITY agrees to release, discharge, and hold harmless PIONEER, its officers, employees, agents, insurers, subsisdiaries, affiliates, and assigns from any and all claims, causes of action, demands or liability arising from the undermining of Shallow Well 7A in 2007. E. CITY shall give eighteen (18) months prior written notice should CITY elect to install a new well pursuant to Section I(C) herein. CITY and PIONEER consent that this agreement is the entire and complete Agreement between the parties and that no alterations, modification or amendments of this Agreement shall be made or deemed valid unless approved in writing and signed by both parties. IN WITNESS THEREOF, the parties hereunto have caused this Agreement to be executed in duplicate, the day and year first above written. CITY OF DOVER Approved as to form: By: ______________________ ______________________ City Solicitor Scott D. Koenig, P.E. City Manager PIONEER MATERIALS A-2

Approved as to form: By: ______________________ ______________________ A-3

A.C. Schultes of Delaware, Inc. P.O. Box 188 – 16289 Sussex Highway Bridgeville, Delaware 19933 24 Hour Service (302) 337-8254 Fax: (302) 337-8234 November 19, 2013 Mr. John Sisson City of Dover P.O. Box 475 Dover, DE 19903 RE: WELL ABANDONMENT PRICING – WELL #7A ACSD QUOTE MC#7205 Dear Mr. Sisson: Per our recent meeting, A.C. SCHULTES OF DELAWARE, INC. is pleased to quote you the following options for abandoning Well #7A: Option #1 – Well Abandonment Only:  Remove existing submersible pump, motor, drop pipe and wire  Verify well diameter  Sound well to determine present depth  Abandon well per State of Delaware regulations  Submit abandonment report to regulatory agency TOTAL COST TO COMPLETE OPTION #1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$5,725.00 Option #2 – Well Abandonment Including Piping & Vault Removal:  Remove existing submersible pump, motor, drop pipe and wire

 Verify well diameter  Sound well to determine present depth  Abandon well per State of Delaware regulations  Submit abandonment report to regulatory agency  Remove and dispose of discharge piping in vault  Excavate and remove existing 8’ x 8’ x 8’ concrete vault  Backfill excavated area with select fill, tamp and rough grade TOTAL COST TO COMPLETE OPTION #2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$13,126.00 Thank you for allowing our firm the opportunity to submit a proposal on this project. Our payment terms are Net 30 Days. All unpaid invoices beyond 30 days will be assessed a 1.5% finance charge per month. We also accept Visa and MasterCard credit card payments. If payment is made with a credit card, please add 3% to total invoice amount for credit card processing. This proposal may be withdrawn or renegotiated by our firm if not accepted within 30 days. Authorization to proceed can be given by signing the attached authorization form, checking the option selected and returning it to my attention at P.O. Box 188, Bridgeville, DE 19933, faxing it to 302-337-8234 or e-mailing it to rmcacsde@verizon.net . Respectfully, A.C. SCHULTES OF DELAWARE, INC. R. Michael Collison R. Michael Collison President RMC/bh

AUTHORIZATION TO PROCEED I, ______________________________, representing______________________________ hereby authorize A.C. SCHULTES OF DELAWARE, INC. to proceed with the scope of work as described in their proposal dated, November 19, 2013. Date: ___________________ Signed: _____________________________ Printed: _____________________________ PO # ___________________ Witnessed: ____________________________ ACSD QUOTE MC#7205 TAX EXEMPTION CERTIFICATE # Options: (please check) ___ Option #1 – Well Abandonment only ___ Option #2 – Well Abandonment with Piping & Vault Removal

Exhibit A Well 7A - Location Map B Í G . ! 902 r ta Ca 880 nza 752 Rd 756 bG!. G!. Í B B " ÍB B Í G . ! n rL B Í G . ! ake Qu 477 459 BB Í G ! . 385 G . ! 343 Í B B G k Long Point Rd . ! Qua n er L Well #7A ! H B Í G ! . G . ! BÍ B G . ! 2627 3009 2623 Rd B Í reek le C G . ! N Litt 2617 B Í B G . ! B Í G . ! B Í G ! . BB Í G ! . 2264 2288 0 500 1,000 2,000 Feet ¯ Legend P Utility Relocation Area h Dead End Water Main 8" Sanitary Sewer Line 24" Parcel Lines C " ! H Well #7A ! ± ! Curb Stop/Meter Pit 1" 10" 10" 27" . ! Sanitary Manhole Fire Hydrants À Service Connection Î " " ! b Curb Stop/House 2" 12" 12" 30" . 1500 GPM G ! Ú [ Pump Station ! Meter Pit ­ ! ± 3" 14" 15" 35" Date Printed: January 30, 2015 File: m:\gis_data\projects\tech_mxds . 1000 - 1499 GPM G ! [ \ Service Line ¼ , Í Curb Stop 4" 6" 16" 16" 18" 36" . 500 - 999 GPM B Í Hydrant Valve 20" 4" \jason_lyon_maps\caf_maps \caf_well_7a G ! . Below 500 GPM G ! Sanitary Force Main b Reducer BÍ Division Valve % L Blow Off 20" 6" Department: Public Works GIS " 21" 8" City of Dover, Delaware

City of Dover Capital Investment Plan Project Tracking Report Quarterly Report as of Dec 31, 2014 Points to Remember - * Original Project Budget = Original Total Project Budget initially included in approved annual budget. * Latest Project Budget = Revised Total Project Budget included in most recent approved annual budget or one of the following: bond resolution, revolving fund loan agreement, Council approved budget amendment, or City Manager approved amendment as per the Budget Amendment Procedure. * Current Fiscal Year - Revised Fiscal Year Budget = Current Year approved project budgets plus carry forward balances of unspent budgets in the prior fiscal year. Project Carry Forward balances will be submitted to City Council for amendment in January 2010. Can also be amended with City Manager approval per the Budget Amendment Procedure. * Water Quality, Inflow/Infiltration, Distribution Upgrades and New Development projects are budgeted as a blanket project and once individual projects are identified and estimated they are created using an allocation of the overall budgeted amount. * Status and Comments provided by City Manager. Community Water & Total Current Year Budget Funding Sources General Transportation Wastewater Electric CIP Budget Balance $ 2,069,300 $ - $ 10,981,300 $ 2,318,900 $ 15,369,500 General Billings for Reimbursement of Expense - - - 250,000 250,000 Debt Financing 3,532,200 - - - 3,532,200 Other State/Federal Grants 208,000 - - - 208,000 State Community Transportation Funds - 1,677,800 - - 1,677,800 Transfer from WW Impact Fee Reserve - - 1,315,600 - 1,315,600 Transfer from General Fund 2,196,000 - - - 2,196,000 Transfer from Operating Funds - - 3,000,000 4,750,000 7,750,000 Transfer from Parkland Reserve 104,000 - - - 104,000 Interest Income - - 25,000 24,800 49,800 Total Funding Sources (Unaudited) $ 8,109,500 $ 1,677,800 $ 15,321,900 $ 7,343,700 $ 32,452,900

City of Dover General Fund - Major CIP Projects Quarterly Report as of Dec 31, 2014 TOTAL PROJECT - PAST, CURRENT & FUTURE BUDGETS CURRENT FISCAL YEAR Original Latest Project Project % Original Revised Fiscal % Project Project Project To Date Budget Budget Fiscal Year Fiscal Year YTD Budget Budget Code Type Description Budget Budget Expenses Balance Spent Budget Budget Expenses Balance Spent Status Comments 1 FY 2013 2 ST1304 M B/L Garrison Farm Improvements $ 1,924,000 $ 4,600,000 $ 1,229,035 $ 3,370,965 26.7% $ 2,600,000 $ 4,226,700 $ 855,724 $ 3,370,976 20.2% In Process Project approximately 55% complete 3 Totals - FY 2013 $ 1,924,000 $ 4,600,000 $ 1,229,035 $ 3,370,965 26.7% $ 2,600,000 $ 4,226,700 $ 855,724 $ 3,370,976 20.2% 4 5 FY 2014 6 --- Equipment (Sprayer) $ 18,600 $ 18,600 $ - $ 18,600 0.0% $ - $ 18,600 $ - $ 18,600 0.0% In Process 30 Gallon Sprayer 7 CS1402 G Security Cameras/Fence 55,000 55,000 77 54,923 0.1% - 55,000 77 54,923 0.1% In Process To be completed in Feb 2015 Installed and 99% complete. Punch 8 PR1401 A/C System @ Pitts Center 65,000 104,000 46,800 57,200 45.0% - 104,000 46,800 57,200 45.0% In Process list 9 PR1402 G Schutte Park Land Improvement 30,000 49,700 49,700 0 100.0% - 48,300 48,276 24 99.9% Complete 10 PR1403 G Demolition @ White Oak Park - 70,500 59,452 11,048 84.3% - 66,100 55,047 11,053 83.3% In Process 11 ST1402 Concrete Program 70,000 45,500 3,937 41,563 8.7% - 42,300 702 41,598 1.7% In Process Project underway, awaiting invoices Project complete, awaiting final 12 ST1403 B/L FY 2014 Bonded Street Program 570,869 522,969 505,430 17,539 96.6% - 60,700 150 60,550 0.2% Complete invoice / maintenance bond Project complete, awaiting final 13 ST1403 B/L Pear Street 126,100 126,100 120,942 5,159 95.9% - 126,100 120,942 5,159 95.9% Complete invoice / maintenance bond ST1403 B/L WQI - Rt 13 Water Main 43,000 43,000 43,031 (31) 100.1% - 43,000 43,031 (31) 100.1% Complete Funds for project transferred to 14 ST1404 Village of Westover IV 129,400 129,400 - 129,400 0.0% - 129,400 - 129,400 0.0% Complete Cannon Mill repaving 15 Totals - FY 2014 $ 1,107,969 $ 1,164,769 $ 829,368 $ 335,401 71.2% $ - $ 693,500 $ 315,024 $ 378,476 45.4% 16 17 FY 2015 18 --- Vehicles & Equipment $ 673,100 $ 673,100 $ 91,979 $ 581,121 13.7% $ 673,100 $ 673,100 $ 91,979 $ 581,121 13.7% In Process Received authorization to begin in 19 --- G Stormwater Utility Plan 90,000 90,000 - 90,000 0.0% 90,000 90,000 - 90,000 0.0% In Process December. Project underway. 20 --- 800 MHZ Radio Replacement - Police 329,500 329,500 226,181 103,320 68.6% 329,500 329,500 226,181 103,320 68.6% In Process 21 FR1500 Annual Contribution to Robbins Hose 238,500 238,500 237,965 535 99.8% 238,500 238,500 237,965 535 99.8% Complete 22 FR1501 SCBA Equipment/Radios 588,800 588,800 - 588,800 0.0% 588,800 588,800 - 588,800 0.0% In Process 23 PR1501 50%G Park & Playground Impr Equipment 66,000 66,000 - 66,000 0.0% 66,000 66,000 - 66,000 0.0% Awaiting completion of needs 24 PR1502 Dover Park Improvement 80,000 80,000 - 80,000 0.0% 80,000 80,000 - 80,000 0.0% Deferred assessment. Put in Reserve for now. Staff working to piggyback off of State 25 ST1501 Salt Storage Barn 50,000 50,000 - 50,000 0.0% - 50,000 - 50,000 0.0% In Process contract Patching contract awarded, concrete 26 ST1502 Streets, Alleys and Concrete Prog. 900,000 669,400 2,227 667,173 0.3% 900,000 669,400 2,227 667,173 0.3% In Process work underway. 27 ST1503 Misc Emergency Street/Storm Repairs 75,000 75,000 34,201 40,799 45.6% 75,000 34,201 40,799 45.6% In Process Project ongoing Design work occuring, awaiting 28 ST1504 G Old PW2 Site Improvements 150,000 150,000 - 150,000 0.0% 150,000 150,000 150,000 0.0% In Process invoices Initial report complete, secondary 29 ST1505 Silver Lake Dam Inspection 51,400 51,400 13,491 37,909 26.2% 51,400 51,400 13,491 37,909 26.2% In Process revision forthcoming 30 ST1506 Stormwater Ditch Maintenance 15,000 15,000 - 15,000 0.0% 15,000 15,000 - 15,000 0.0% 31 ST1507 Buttner Place Flooding Design - 10,000 - 10,000 0.0% 10,000 10,000 0.0% In Process Design work occuring, bid in Feb 32 CS1502 12 Additional Security Cameras 102,600 102,600 - 102,600 0.0% 102,600 102,600 - 102,600 0.0% 33 $ 3,409,900 $ 3,189,300 $ 606,043 $ 2,583,257 19.0% $ 3,284,900 $ 3,189,300 $ 606,043 $ 2,583,257 19.0% 34 35 Grand Totals $ 6,441,869 $ 8,954,069 $ 2,664,447 $ 6,289,622 29.8% $ 5,884,900 $ 8,109,500 $ 1,776,792 $ 6,332,708 21.9% Legend M = Multi-year project - a project with a specific schedule to occur over multiple years. R = Recurring project - a project that begins and ends each fiscal year and is re-budgeted to start over each fiscal year. G = Grant funded project B/L = To be financed through bonds or commercial loan.

City of Dover Community Transportation - Major CIP Projects Quarterly Report as of Dec 31, 2014 TOTAL PROJECT - PAST, CURRENT & FUTURE BUDGETS CURRENT FISCAL YEAR Original Latest Project Project % Original Revised Fiscal % Project Project Project To Date Budget Budget Fiscal Year Fiscal Year YTD Budget Budget Code Type Description Budget Budget Expenses Balance Spent Budget Budget Expenses Balance Spent Status Comments 1 FY 2009 - FY 2013 2 CT0212 South Street Paving $ 80,400 $ 42,200 $ 42,198 $ 2 100.0% $ - $ - $ - $ - 0.0% Complete Remaining funds transferred to CT1562 3 ST0232 Pat Lynn Drive/D.H.S. Storm Drain Pipe 155,200 190,300 184,778 5,522 0.0% - 5,500 - 5,500 0.0% Complete Unused funds still available 4 CT0555 Little League Parking Lot paving 11,600 - - - 0.0% - - - - 0.0% Complete Remaining funds transferred to CT1562 5 TE0601 M Lincoln Park Center 900,000 1,423,500 523,277 900,223 36.8% - 900,200 - 900,200 0.0% In Process On-going 6 CT0708 E Water Street Brick 65,000 65,000 - 65,000 0.0% - 65,000 - 65,000 0.0% Specialty contract needed 7 CT0977 Schutte Park Parking Lot 22,000 - - - 0.0% - - - - 0.0% Complete Budget transferred to CT1562 8 CT1201 North Street Roundabout 500,000 572,200 572,205 (5) 100.0% - 17,800 17,840 (40) 100.2% Complete Funds transferred to concrete project, which is 9 CT1317 Wesley College Phase II 148,600 148,600 119,241 29,359 80.2% - 29,400 - 29,400 0.0% In Process underway, awaiting invoices 10 CT1369 Bayard Ave (Orchard Av & Morris Dr) 24,700 24,700 3,396 21,304 13.7% - 24,700 3,396 21,304 13.7% In Process Awaiting final invoice 11 Totals - FY 2009 - FY 2013 $ 1,907,500 $ 2,466,500 $ 1,445,095 $ 1,021,405 58.6% $ - $ 1,042,600 $ 21,236 $ 1,021,364 2.0% 12 13 FY 2014 14 CT1405 Lakeview Drainage Study $ 24,400 $ 24,400 $ 12,097 $ 12,303 49.6% $ - $ 24,400 $ 12,097 $ 12,303 49.6% In Process Final design alignment approved by owner 15 CT1412 Inner City Cultural League - S. West St. 38,400 38,400 - 38,400 0.0% - 38,400 - 38,400 0.0% Bids to go out in February Awaiting final authorization from 21st Century 16 CT1490 Persimmon Park Place Planning Study 600 6,000 - 6,000 0.0% - 6,000 - 6,000 0.0% funding (DNREC) 17 Totals - FY 2014 $ 63,400 $ 68,800 $ 12,097 $ 56,703 17.6% $ - $ 68,800 $ 12,097 $ 56,703 17.6% 18 19 FY 2015 20 CT1542 Loockerman Plaza $ 42,600 $ 42,600 $ - $ 42,600 0.0% $ 42,600 $ 42,600 $ - $ 42,600 0.0% In Process Contractor to complete work as weather allows 21 CT1551 Townsend Blvd Striping 5,100 5,100 5,067 33 99.4% 5,100 5,100 5,067 33 99.4% Complete 22 CT1562 Village of Cannon Mill Repavement 315,000 386,900 - 386,900 0.0% 315,000 386,900 - 386,900 0.0% In Process Project underway 23 CT1571 Solid Rock Church 25,000 25,000 - 25,000 0.0% 25,000 25,000 - 25,000 0.0% In Process Purchase order provided to contractor 24 CTxxxx Unapplied CT Projects (placeholder) 500,000 500,000 - 500,000 0.0% 112,300 106,800 - 106,800 0.0% Future CT Agreements 25 Totals - FY 2015 $ 887,700 $ 959,600 $ 5,067 $ 954,533 0.5% $ 500,000 $ 566,400 $ 5,067 $ 561,333 0.9% 26 27 28 Grand Totals $ 2,858,600 $ 3,494,900 $ 1,462,258 $ 2,032,642 41.8% $ 500,000 $ 1,677,800 $ 38,400 $ 1,639,400 2.3% Legend M = Multi-year project - a project with a specific schedule to occur over multiple years. R = Recurring project - a project that begins and ends each fiscal year and is re-budgeted to start over each fiscal year. C = Project funded by combination of CT Funds and General Fund

City of Dover Water/Wastewater Improvement & Extension Fund - Major CIP Projects Quarterly Report as of Dec 31, 2014 TOTAL PROJECT - PAST, CURRENT & FUTURE BUDGETS CURRENT FISCAL YEAR Original Latest Project Project % Original Revised Fiscal % Project Project Project To Date Budget Budget Fiscal Year Fiscal Year YTD Budget Budget Code Type Description Budget Budget Expenses Balance Spent Budget Budget Expenses Balance Spent Status Comments 1 FY 2008 - FY 2013 2 WD0804 M 1.0 MG Elevated Water Storage $ 4,196,600 $ 2,556,000 $ 87,827 $ 2,468,173 3.4% $ - $ 2,470,700 $ 2,500 $ 2,468,200 0.1% In Process Staff trying to site tank, in negotiations 3 WD0805 M Piney Point Well 398,800 1,096,200 1,093,212 2,988 99.7% - 3,000 - 3,000 0.0% Complete Pending final approval from DNREC 4 WW1010 I Tar Ditch Interceptor Upgrade 518,200 518,200 50,082 468,118 9.7% - 468,200 - 468,200 0.0% In Process Easement request sent to residents 5 WD1302 M Garrison Farm Water Storage Tank 1,828,000 4,677,000 1,537,170 3,139,831 32.9% 400,000 4,221,600 1,081,780 3,139,820 25.6% In Process Multiyear Project 6 WW1304 M Garrison Farm WW Improvements 1,828,000 3,779,600 1,611,175 2,168,425 42.6% - 3,240,900 1,072,459 2,168,441 33.1% In Process Multiyear project 7 Totals - FY 2008 - FY 2013 $ 8,769,600 $ 12,627,000 $ 4,379,466 $ 8,247,534 34.7% $ 400,000 $ 10,404,400 $ 2,156,739 $ 8,247,661 20.7% 8 9 FY 2014 10 WW1205 Dover Brook Gardens PS Upgrade $ 52,800 $ 16,000 $ 16,043 $ (43) 100.3% $ - $ 2,400 2,414 $ (14) 100.6% Complete 11 WW1206 Brandywine Pump Station 402,000 402,000 59,331 342,669 14.8% - 365,500 22,856 342,644 6.3% In Process Contractor to mobilize in January 12 WW1207 McKee PS 55,000 55,000 7,724 47,276 14.0% - 47,300 - 47,300 0.0% In Process Contractor to mobilize in February 13 WW1301 Hazlettville Rd Interceptor 20,400 20,400 5,129 15,271 25.1% - 16,300 1,075 15,225 6.6% Complete 14 WW1302 Lakeview PS 52,700 52,700 42,871 9,829 81.3% - 10,600 804 9,796 7.6% Complete 15 WW1303 Westover PS 768,800 768,800 56,987 711,813 7.4% 718,000 718,000 6,240 711,760 0.9% In Process Bids due February 4 16 II1402 West Dover Connector 37,800 37,800 37,800 (0) 100.0% - 2,000 2,000 - 100.0% Complete 17 II1404 Basin #5 I & I Buck Drive 342,000 378,400 39,151 339,249 10.3% - 339,200 - 339,200 0.0% In Process Contractor to mobilize in mid January 18 Totals - FY 2014 $ 1,731,500 $ 1,731,100 $ 265,037 $ 1,466,063 15.3% $ 718,000 $ 1,501,300 $ 35,389 $ 1,465,911 2.4% 19 20 FY 2015 21 --- Vehicles & Equipment $ 382,300 $ 382,300 $ - $ 382,300 0.0% $ 382,300 $ 382,300 $ - $ 382,300 0.0% 22 WD1500 Meter Replacement Project 19,000 19,000 - 19,000 0.0% 19,000 19,000 - 19,000 0.0% In Process Obtaining quotes for meters 23 WD1501 Wellhead Redevelopment 80,000 80,000 - 80,000 0.0% 80,000 80,000 - 80,000 0.0% In Process Contractor has begun, awaiting invoices 24 WQ1501 Water Quality Improvements 527,500 340,800 - 340,800 0.0% 527,500 340,800 - 340,800 0.0% In Process West Dover Connector WQ, bid due in January 25 WQ1502 Misc Emergency Water Quality Repairs 75,000 75,000 25,065 49,935 33.4% - 75,000 25,065 49,935 33.4% In Process Ongoing 26 WD1503 WTP Process Improvements 175,000 175,000 - 175,000 0.0% 175,000 175,000 - 175,000 0.0% In Process Project underway, awaiting invoices from consultant 27 WD1504 SCADA Equipment Tech Upgrade 78,000 78,000 - 78,000 0.0% 78,000 78,000 - 78,000 0.0% In Process Sole Source contract CAF in January 28 WD1505 Well #11 VFD Repair 6,000 6,000 - 6,000 0.0% - 6,000 - 6,000 0.0% In Process Installation 95% complete, awaiting invoices 29 WW1501 Inflow/Infiltration Removal 917,400 693,100 - 693,100 0.0% 917,400 693,100 - 693,100 0.0% In Process West Dover Connector I&I bid due in January 30 WW1503 Hazzletteville Road Interceptor 755,000 755,000 - 755,000 0.0% 755,000 755,000 - 755,000 0.0% In Process Bids due February 26 31 WW1504 Lakeview Dr Pump Stn Replacement 450,000 450,000 1,008 448,992 0.2% 450,000 450,000 1,008 448,992 0.2% In Process Contractor to mobilize in Spring 32 WW1505 Pump Station Repairs 36,000 38,000 12,444 25,556 32.7% 36,000 38,000 12,444 25,556 32.7% In Process Awaiting delivery of materials 33 WW1506 Walker Rd PS Gen Replacement 58,000 58,000 - 58,000 0.0% 58,000 58,000 - 58,000 0.0% In Process Bid advertised in February 34 WW1507 Retreat Pump Station Replacement 52,000 52,000 15,976 36,024 30.7% 52,000 52,000 15,976 36,024 30.7% In Process Final bid documents expected in February 35 WW1508 McKee Run PS Generator Repair 14,000 14,000 - 14,000 0.0% - 14,000 - 14,000 0.0% In Process Contractor to mobilize in late January 36 II1501 Misc Emergency I&I Repairs 200,000 200,000 104,010 95,990 52.0% - 200,000 104,010 95,990 52.0% In Process Ongoing 37 Totals - FY 2015 $ 3,825,200 $ 3,416,200 $ 158,502 $ 3,257,698 4.6% $ 3,530,200 $ 3,416,200 $ 158,502 $ 3,257,698 4.6% 38 39 40 Grand Totals $ 14,326,300 $ 17,774,300 $ 4,803,004 $ 12,971,296 27.0% $ 4,648,200 $ 15,321,900 $ 2,350,630 $ 12,971,270 15.3% Legend M = Multi-year project - a project with a specific schedule to occur over multiple years. R = Recurring project - a project that begins and ends each fiscal year and is re-budgeted to start over each fiscal year. SL = State Loan Project - construction phase is financed I = Impact Fee (partially) financed project O = Operating revenues

City of Dover Electric Improvement & Extension Fund - Major CIP Projects Quarterly Report as of Dec 31, 2014 TOTAL PROJECT - PAST, CURRENT & FUTURE BUDGETS CURRENT FISCAL YEAR Original Latest Project Project % Current Revised Fiscal % Project Project Project To Date Budget Budget Fiscal Year Fiscal Year YTD Budget Budget Code Type Description Budget Budget Expenses Balance Spent Budget Budget Expenses Balance Spent Status Comments 1 FY 2012 - FY 2013 2 EG1212 M Unit 3 Turbine Inspection/Repair $ 1,494,000 $ 1,653,536 $ 1,561,756 $ 91,780 94.4% $ - $ 91,800 $ - $ 91,800 0.0% In Process Will complete in spring 3 EE1308 M Horsepond Substation Upgrade 730,900 1,088,700 912,504 176,196 83.8% - 469,100 292,935 176,165 62.4% In Process 4 EE1312 M General Scott Switchgear 1,155,000 1,155,000 25,224 1,129,776 2.2% 1,100,000 1,137,600 7,851 1,129,750 0.7% In Process 5 EE1314 Capitol Park Upgrade - 347,872 328,997 18,875 94.6% 27,500 8,574 18,926 31.2% In Process Under construction 6 Totals - FY 2012 - FY 2013 $ 3,379,900 $ 4,245,108 $ 2,828,482 $ 1,416,626 66.6% $ 1,100,000 $ 1,726,000 $ 309,360 $ 1,416,640 17.9% 7 8 FY 2014 9 --- Metering Infrastructure & Freightliner $ 392,000 $ 425,000 $ 241,828 $ 183,172 56.9% $ 33,000 $ 425,000 $ 241,828 $ 183,172 56.9% In Process 10 EE1443 GOTP Transmission Line Relocation 550,000 550,000 19,548 530,453 3.6% - 550,000 19,548 530,453 3.6% In Process 11 EG1402 M Unit 3 Cooling Tower Repairs 803,000 1,123,000 577,286 545,714 51.4% 676,000 1,091,200 545,501 545,699 50.0% In Process Will complete in January - February 12 EG1406 McKee Run Energy Pipe Replacement 80,000 80,000 77,692 2,308 97.1% - 26,500 24,178 2,322 91.2% In Process Work complete, waiting on invoicing 13 EG1407 M Metering System Upgrades 150,000 150,000 - 150,000 0.0% 125,000 150,000 - 150,000 0.0% In Process Schedule and scope under evaluation 14 EG1408 McKee/VanSant Safety & Compliance 185,000 86,000 30,329 55,671 35.3% - 63,100 7,403 55,697 11.7% In Process Will complete in spring 15 EG1413 McKee/VanSant Preserve Structure 42,000 42,000 - 42,000 0.0% - 42,000 - 42,000 0.0% Cancelled Project cancelled 16 EG1416 M VanSant Capacity Increase 1,500,000 1,000,000 314,040 685,960 31.4% 750,000 901,900 215,984 685,916 23.9% In Process Multi-year project - design to be complete in spring Project complete in FY14. Final invoice rec'd FY15. 17 EE1421 Richardson Circle Upgrade - - 307 (307) 0.0% - - 307 (307) 0.0% Complete BA to cover overage submitted in January. 18 EE1433 Chandelle Airport URD 117,900 100,200 100,129 71 99.9% - 52,900 52,828 72 99.9% Complete 19 EE1429 Clearview Meadows 88,000 85,300 4,108 81,192 4.8% - 81,200 - 81,200 0.0% In Process 20 EE1438 Dover Downs Tower 53,800 51,600 51,508 92 99.8% - 51,600 51,508 92 99.8% Complete 21 EE1439 Family Dollar Store 9,800 7,500 7,357 143 98.1% - 7,500 7,357 143 98.1% Complete 22 EE1440 Kraft Foods 69kv Temp 10,000 10,000 5,739 4,261 57.4% - 4,300 - 4,300 0.0% In Process 23 Totals - FY 2014 $ 3,981,500 $ 3,710,600 $ 1,429,869 $ 2,280,731 38.5% $ 1,584,000 $ 3,447,200 $ 1,166,442 $ 2,280,758 33.8% 24 25 FY 2015 26 --- Vehicles & Equipment $ 53,100 $ 53,100 5,320 $ 47,780 10.0% $ 53,100 $ 53,100 $ 5,320 $ 47,780 10.0% In Process 27 EG1503 McKee Unit 3 Aux Sys Comp 160,000 89,000 9,743 79,257 10.9% 160,000 89,000 9,743 79,257 10.9% In Process 28 EG1504 McKee Unit 3 Boiler System 295,000 138,000 - 138,000 0.0% 295,000 138,000 - 138,000 0.0% 30 EG1506 McKee & VanSant Safety Improvement 52,000 52,000 - 52,000 0.0% 52,000 52,000 - 52,000 0.0% 32 EG1508 Plants - Preserve Structure 120,000 93,800 - 93,800 100.0% 120,000 93,800 - 93,800 0.0% 33 EE1500 69 kV Rebuild 75,000 75,000 - 75,000 0.0% 75,000 75,000 - 75,000 0.0% Cancelled by state due to lack of state funding for 34 EE1505 DNREC R&R Metering 41,000 - - - 0.0% 41,000 - - - 0.0% Cancelled FY15 35 EE1506 R Lighting Proj & Rehab 50,000 50,000 - 50,000 0.0% 50,000 50,000 - 50,000 0.0% Underground relocation to begin depending on 36 EE1509 West Dover Connector 250,000 250,000 32,000 218,000 12.8% 250,000 250,000 32,000 218,000 12.8% In Process weather 37 EE1513 M Town Point Distribution Feeders 250,000 250,000 16,609 233,391 6.6% 250,000 250,000 16,609 233,391 6.6% In Process Directional boring has begun 38 EE1514 Meadows @ Jefferson Terrace 15,400 15,400 - 15,400 0.0% 15,400 15,400 - 15,400 0.0% Waiting on developer 39 EE1515 R New Developments FY 2015 171,300 162,600 - 162,600 0.0% 171,300 162,600 - 162,600 0.0% Contractor to install conduit to proceed, PS 40 EE1516 Chestnut Grove 299,000 299,000 118,999 180,001 39.8% 299,000 299,000 118,999 180,001 39.8% In Process completed 41 EE1520 69 kV Cable Replacement North Street 85,000 85,000 - 85,000 0.0% 85,000 85,000 - 85,000 0.0% In design 42 EE1521 College to McKee Feeders 50,000 50,000 - 50,000 0.0% 50,000 50,000 - 50,000 0.0% Cancelled PW not doing their portion for several years 43 EE1522 Garrison Oak Park 184,000 184,000 68,850 115,150 37.4% 184,000 184,000 68,850 115,150 37.4% In Process 44 EE1523 Uzin Utz 39,300 8,000 7,936 64 99.2% 39,300 8,000 7,936 64 99.2% Complete 45 EE1524 Best Buy Transformer 12,400 12,400 12,339 61 99.5% 12,400 12,339 61 99.5% Complete 46 EE1526 Playtex Addition 200,000 200,000 1,250 198,750 0.6% 200,000 1,250 198,750 0.6% In Process NSC permits being submitted 47 EE1527 DAFB Temporary Concrete Plant 36,000 36,000 2,319 33,681 6.4% 36,000 2,319 33,681 6.4% In Process 48 EE1528 640 Beechwood Avenue 6,600 6,600 6,919 (319) 104.8% 6,600 6,919 (319) 104.8% Complete 49 EE1530 Bayhealth URD Relocation 12,600 12,600 10,144 2,456 80.5% 12,600 10,144 2,456 80.5% Complete 50 EE1531 Windstream DAFB/College Road 17,700 17,700 752 16,948 4.2% 17,700 752 16,948 4.2% In Process Fiber path from College to DAFB complete 51 EE1533 DE State Police Generator 5,500 5,500 - 5,500 0.0% 5,500 - 5,500 0.0% In Process 52 EE1534 Hardees Rte 13 Damage 7,800 7,800 7,782 18 99.8% 7,800 7,782 18 99.8% Complete 53 EE1535 Eden Hill Lights Phase 1 17,000 17,000 - 17,000 0.0% 17,000 - 17,000 0.0% In Process 54 Totals - FY 2015 $ 2,567,700 $ 2,170,500 $ 300,961 $ 1,869,539 13.9% $ 2,252,100 $ 2,170,500 $ 300,961 $ 1,869,539 13.9% 55 56 Grand Totals $ 9,929,100 $ 10,126,208 $ 4,559,312 $ 5,566,896 45.0% $ 4,936,100 $ 7,343,700 $ 1,776,762 $ 5,566,938 24.2% Legend M = Multi-year project - a project with a specific schedule to occur over multiple years. B = Bonded Project R = Recurring project - a project that begins and ends each fiscal year and is re-budgeted to start over each fiscal year. S = State fully or partially reimbursed project

The Energy Authority, Inc. Monthly Management Committee Update – December 2014 January 22, 2014 Prepared by: Robert Trinnear Client Services Manager 904.360.1309 rtrinnear@teainc.org

TABLE OF CONTENTS I. Executive Summary 1 II. Budget Report 12 III. Operations Management 15 IV. Appendix 29 i

I. Executive Summary A. Power Supply Summary: Overall Power Supply costs were $406,238 under budget driven by lower PJM fees and market prices. Dover’s budgeted cost for all power supply (capacity AND energy) was $71.97/MWh. The actual cost of all power supply (capacity AND energy) was $63.19/MWh. The cost of energy alone was $40.65/MWh, versus a budgeted energy cost of $45.87. Dover’s hedge purchases totaled 47,376 MWh, which was 78% of the actual load. The budgeted hedge purchase totaled 35,816, which was 61% of the budgeted load. Dover’s power purchases from hedge transactions totaled $2,034,022. Purchases from PJM (energy and fees) totaled $845,654. This number includes DA spot market energy charges of $440,646 and Network Integration Transmission Service charges of $420,278. Dover’s total load was 60,875 MWh versus a forecasted load of 59,097 MWh. Dover’s planned energy purchase from the SunPark solar installation was 804 MWh. Dover’s actual energy purchase from the SunPark installation was 473 MWh. 1

Supply Source Summary: Supply Variance: Budget Actual Variance Gross Load 59,097 60,875 (1,778) Wholesale Load 58,293 60,402 (2,109) Hedged Volume (MWh) 35,816 47,376 (11,560) Unhedged Volume (MWh) 22,477 13,026 9,451 Dover SunPark Volume (MWh) 804 473 331 Renewable Energy Credits Volume 121 125 (4) Hedged Cost ($/MWh) $ 45.72 $ 42.93 $ 2.79 Unhedged Energy Cost ($/MWh) $ 43.64 $ 29.59 $ 14.04 Solar Energy Cost ($/MWh) $ 115.11 $ 115.97 $ (0.86) Energy Costs ($/MWh) $45.87 $40.65 $5.22 All-in Costs - Energy, Capacity and RECs ($/MWh) $71.97 $63.19 $8.77 2

B. Generation Summary: Dover generated 0 MWh in the month. Net generation revenue was $263,495 vs. a budget of $356,264. 3

Generation Breakdown: City of Dover Monthly Wholesale Generation Formula December, 2014 Net Generation 0.00 D Production Margin PJM - Generation Economic and Reliability Dispatch $ - A Natural Gas & Oil Consumption Purchases for Generation $ - Natural Gas Transport $0.00 Eastern Shore Cashout $0.00 Oil Consumption $ - Subtotal: Natural Gas & Oil Consumption $ - B Gross Production Margin $ - C = (A + B) $/MWh Generation Production Gross Margin $ - E = (C/D) PJM - Capacity Generation Capacity Credit $ 725,758.98 Reactive Supply and Transmission Losses $ 52,079.42 Subtotal: PJM - Capacity $ 777,838.40 F All in Generation Margin All in Generation Margin Total $ 777,838.40 (G = C + F) 4

C. Emissions Summary: Emissions Allowance Summary through December 31, 2014 McKee Run 3 and VanSant Unit 11 (Dover’s two units covered by the Clean Air Interstate Rule or CAIR) were not operated during the month of November, so there were no additional emissions during this period. CAIR EMISSION ALLOWANCE SUMMARY SO2 NOx Allowances1 Date Action Allowances Seasonal Annual 1/1/09 2008 Carryover 3,240 0 0 1/1/09 2009 Allocation 2,723 53 80 2/1/10 2010 Allocation 2,039 50 78 1/1/11 2011 Allocation 1,988 49 78 4/1/11 2011 Reallocation 2 4 1/11/12 2012 Allocation 1,988 51 80 10/4/2012 2013 Allocation 1,988 49 76 2014 Allocation 1,988 49 76 9/29/09 SO2 Sales (1,500) 11/12/09 NOx Ann. Sales (45) 11/13/09 SO2 Sales (1,410) 11/20/09 NOx Seas. Sales (25) 12/31/09 2009 Emissions2 (1) (6) (13) 12/31/10 2010 Emissions 0 (54) (54) 10/31/10 EPA Linearity Testing Req. (68) (68) 2011 2010 Deficit NOx Purchases 53 22 Aug 2011 Revised 2010 ECMPS data 30 30 Nov 2011 NOx Seas. Sales (DEMEC) (1) 12/31/11 2011 Emissions2 (1) (32) (36) 12/31/12 2012 Emissions2 (1) (37) (37) Nov 2012 NOx Seas. Sales (DEMEC) (2) 2/13/2013 NOx Annual. Sales (DEMEC) (3) 11/15/13 NOx Annual Sales (DEMEC) (5) 12/31/13 2013 Emissions (0) (20) (20) 12/31/14 2014 CYTD Emissions (1) (36) (44) REMAINING ALLOWANCES 13,040 99 201 Due to a series of federal court decisions discussed in previous monthly reports, beginning January 1, 2015 the reinstated CSAPR replaces CAIR. The final CAIR true- 1 Per CAIR, starting in 2009, NOx emissions are governed by a seasonal and annual program. 2 Under CAIR, pre-CAIR SO2 allowances are retired at a rate of 2 allowances for each ton emitted. It is assumed that pre-CAIR allowances will be retired before CAIR allowances. 5

ups for 2014 will occur in 2015, after which CAIR allowances will have no value. To avoid confusion, EPA CAMD will remove all post-2014 CAIR allowances from the Allowance Tracking System on March 3, 2015. While Delaware is included in the CAIR footprint, it is not included in the CSAPR footprint. CAIR allowances cannot be used for CSAPR compliance, so Dover’s CAIR allowances will become valueless when CSAPR is reinstated. The separate Clean Air Act acid rain deposition control program which governs SO2 national allowance trading program will remain in effect, however the CAIR provisions for SO2 will also disappear for Delaware. Market liquidity for CAIR allowances is very low, with few transactions occurring. The following table shows estimated values for Dover’s banked allowances, based on mid- point of bids and offers from Evolution Markets. For the January 2015 report, TEA will no longer include a CAIR summary. It will continue to report on Dover’s Clean Air Act Title IV SO2 allowances Mark Value for CAIR Allowances Commodity $/Ton Tons Market Value ICE Settlement as of January 15, 2015 SO2 Allowances – Title IV $0.375 13,040 $ 4,890 NOx Allowances - Seasonal $0.003 99 0 NOx Allowances - Annual $ 6.25 201 1,256 TOTAL $ 6,164 Regional Greenhouse Gas Initiative The State of Delaware is a participant in the Regional Greenhouse Gas Initiative (RGGI). The City of Dover must comply with RGGI by surrendering carbon dioxide (CO2) allowances pursuant to the State of Delaware’s laws (Title 7, Chapter 60, Sub-Title II-A). Delaware adopted a combined emissions allowance allocation/auction mechanism for RGGI, in which 40% of CO2 allowances were allocated to sources for 2009, declining by 8% per year so that by 2014, all CO2 allowances are auctioned. Dover had more than a sufficient number of RGGI allowances allocated to it to cover its requirements through the first compliance period (calendar years 2009-2011). Any unused allowances are carried over (“banked”) for subsequent years. The table below shows RGGI allowance allocations, deductions and the cumulative balance by year (column 8). 3 No ICE or Broker price was available for seasonal NOx allowances 6

CO2 Allowance Summary (12/15/2014) 1 2 3 4 5 6 7 8 CO2 CO2 Allowances Annual CO2 Allowances (Per Facility, Allocated Cumulative CO2 Tons CO2 Allowance (Sold) Prior to Sale) CO2 Vintage Purchased Allowances Emitted Allowance Balance McKee Balance YTD VanSant Run 2009 0 60,128 2,056 62,184 (5,796) 56,388 56,388 2010 0 48,102 1,645 49,747 (32,971) 16,776 73,164 4 2011 0 36,077 1,234 37,311 (17,746) 19,565 92,729 2012 0 27,058 925 27,983 ( 15,957) 12,026 104,755 2013 0 22,879 1,939 24,818 (10,231) 14,587 119,343 2014 1,000 -0- -0- -0- (25,426) (25,426) 94,917 Dover no longer receives allocations of RGGI allowances (columns 3-5). The cumulative balance can be utilized for generation in 2014 and future years. Note that the 2014 emissions through the end of October are larger than four out of the last five years. Once the banked allowances have been fully utilized, Dover will be required to purchase RGGI allowances through the auctions or through over-the-counter markets. Assuming that Dover does not sell any banked allowances and produces 25,000 tons of CO2 emissions annually, it should be able to maintain a positive balance through around 2018. In anticipation of needing additional RGGI allowances in the future, Dover participated in Auction 26 held on December 3, 2014. It submitted a tiered bid totaling 4,000 allowances. It was awarded 1,000 allowances from its highest price bid, with the auction clearing price of $5.21/ton. Based on the January 15, 2015 ICE price for the January 2015 strip ($5.50/ton), the estimated market value of Dover’s existing 94,917 ton RGGI allowance bank is $522,044. Renewable Energy Certificates Dover owns two photovoltaic systems totaling 15 kW, consisting of (one 5 kW unit at the Utilities Administration Building and two 5 kW units at the McKee Run generating station. Dover also receives solar energy produced by the 10 MW Dover Sun Park which 4 2011 and 2012 emissions corrected to match values in RGGI COATS. 7

is owned by White Oak Solar Energy, LLC. In addition to the all of the physical energy produced by the Sun Park, Dover receives 15% of Sun Park’s Solar Renewable Energy Credits (SRECS). Dover participates in the Delaware Municipal Electric Corporation’s (DEMEC) Renewable Portfolio Standard (RPS) for compliance with the State of Delaware’s RPS laws applicable to municipal utilities. The first compliance period under DEMEC’s RPS was for the 36 months ending May 2014. Through the end of November 2014, Dover had accumulated a total of 6,281 SRECS from these renewable energy resources, net of 2,941 SREC transferred to DEMEC for retirement in accordance with the RPS requirement for the first compliance period. While Delaware does periodically hold auctions for SRECs, these auctions are for size tiers N1 – N3, E1 and E2. The Dover Sun Park is in the N4 tier for very large facilities. State-wide carve outs for Tier 4 has been fully subscribed, so there is not a market for tier 4 SRECs in Delaware. The nearest viable market for Dover’s SRECs is Pennsylvania. Daily settlement prices from Flett Exchange Environmental services (www.flettexchange.com) were used for 2011/12 through 2014/15 vintage allowances. The December 12, 2014 daily settlement prices for Pennsylvania SRECS are used in the table below. SREC Vintage Market Clearing Price SREC Balance Market Value (June 1 – May 31) 2012/2013 $27.25 1,834 49,976 2013/2014 $36.00 2,735 98,460 2014/2015 $42.00 1,837 77,154 TOTAL 6,406 $225,590 TEA continues to recommend to Dover to retain these allowances for compliance with its Renewable Portfolio Standard (RPS) which DEMEC is working on. D. Operations Management Summary: During the month of December there were no reportable or lost time accidents or injuries. The facility has now gone 1,539 days without an OSHA recordable accident and 1,539 consecutive days without a lost time reportable accident. There were no Environmental Notices of Violations or exceedances issued. There were no near misses reported. The planned outages for Units 1, 2 and 11 were cleared on December 1 and the planned outage for Unit 3 was cleared on December 11. There were no unit dispatches during the month for PJM and there were no self- scheduled unit operations. 8

Monthly Budget Variance – The actual expenses attributable to O&M of the two sites for the month of December were $514,343 against a budgeted amount of $401,281 for an unfavorable variance of $113,062 or 28.17%. The principal reasons for the unfavorable variance were due to; having three (3) payrolls expensed in December rather than the two (2) that were budgeted. E. Risk Management Summary: Forward power prices in PJM have declined from last month. The current projected cost of service is below: Blended Monthly Cost Change PY Hedge Ratio ($/MWh) ($/MWh) 2014-15 80% $ 46.33 $ (0.44) 2015-16 69% $ 43.25 $ (0.96) 2016-17 43% $ 41.86 $ (1.12) 2017-18 34% $ 42.07 $ (1.34) 2018-19 14% $ 41.69 $ (2.10) 9

II. Budget Report Budget Actual Variance Dec-14 Dec 14 Gross Load 59,097 60,875 (1,778) Power Supply Hedged Energy $1,637,471 $2,034,022 ($396,551) PJM - Energy, Congestion & Losses $980,794 $385,440 $595,354 PJM - ARR, Transmission and Fees $616,981 $460,214 $156,767 Dover SUN Park Energy $92,550 $54,848 $37,702 Dover SUN Park RECs $18,935 $17,303 $1,633 Management Fees $83,000 $83,000 $0 PJM - Capacity UCAP Obligated Purchased $823,464 $812,129 $11,335 Subtotal - Power Supply $4,253,195 $3,846,957 $406,238 Power Generation O&M Plant O&M $401,281 $514,343 (113,062) Subtotal Generation O&M 401,281.00 514,343.00 ($113,062) Power Generation Production Margin PJM - Economic and reliability dispatch $0 $0 $0 Fixed Fuel and Transport Charges $0 $0 $0 Subtotal Generation Production Margin $0 $ - $0 Power Generation Non-Production Revenue PJM - Generation Capacity Credit $ (740,515) $ (725,759) $ (14,756) Capacity Replacement Charge $ 11,160 $ - $ 11,160 PJM - Reactive Supply & Transmission Losses $ (28,190) $ (52,079) $ 23,889 Subtotal - Non-Production Revenue ($757,545) ($777,838) $20,293 SubTotal - All Generation (356,264) ($263,495) ($92,769) Total - Utilities Cost $3,896,931 $3,583,461 $313,470 Unit Costs Total - Power Supply $71.97 $63.19 $8.77 Total - Power Generation ($6.03) ($4.33) ($1.70) Final Cost of Service to City of Dover Ratepayers $65.94 $58.87 $7.07 10

Variance Analysis: Power Supply  Dover consumed 1,778 MWh more than forecast for the month.  PJM transmission and fees were lower than expected with minimal monthly reactive services charges.  This resulted in a net power supply cost of $63.19/MWh, $8.77/MWh below budget.  For the month, the city realized a favorable variance of $406,238 for power supply vs. the monthly budget.  Dover Sun Park generated 331 MWh less than forecast. Generation  Power generation had an unfavorable budget variance of $92,769.  Plant O&M expenses had an unfavorable budget variance of $113,062 for the month. 11

Budget Actual Variance YTD YTD Source Formula G = (Net PJM PJM load Inschedules + Wholesale Load + White Oak-Dover Dover SunPark Gross Load 387,895 381,405 6,490 invoice Mwh) Power Supply TEA Deal capture system, verified by settlement checking out Hedged Energy $11,269,691 $13,874,771 ($2,605,080) with counterparties PJM - Energy, Congestion & Losses $6,444,614 $3,201,910 $3,242,704 PJM Invoice PJM - ARR, Transmission and Fees $3,697,467 $2,769,913 $927,554 PJM Invoice White Oak-Dover Dover SUN Park Energy $912,640 $969,196 ($56,556) Invoice White Oak-Dover Dover SUN Park RECs $201,940 $222,420 ($20,480) Invoice Management Fees $498,000 $498,000 $0 Annual Contract PJM - Capacity UCAP Obligated Purchased $4,887,659 $4,804,934 $82,725 PJM Invoice Subtotal - Power Supply $27,912,011 $26,341,144 $1,570,867 A Power Generation O&M Plant O&M $2,926,036 $3,167,509 ($241,473) Monthly NAES report Subtotal Generation O&M $2,926,036 $3,167,509 ($241,473) B Power Generation Production Margin PJM - Economic and reliability dispatch ($1,339,680) ($1,946,803) $607,123 PJM Invoice Fixed Fuel and Transport Charges TEA Deal capture system, verified by $966,800 $991,866 ($25,066) settlement checking out Subtotal Generation Production Margin ($372,880) ($954,937) $582,057 C Power Generation Non-Production Revenue PJM - Generation Capacity Credit ($4,395,312) ($4,298,788) ($96,524) PJM Invoice Budgeted amount for incremental 3.6 mw purchase. Actuals been shown in PJM - Capacity UCAP Obligated Capacity Replacement Charge $66,240 $0 $66,240 purchased. PJM - Reactive Supply & Transmission Losses ($235,970) ($326,806) $90,836 PJM Invoice Subtotal - Non-Production Revenue ($4,565,042) ($4,625,594) $60,552 D SubTotal - All Generation ($2,011,886) ($2,413,022) $401,136 E = (B+C+D) Total - Utilities Cost $25,900,125 $23,928,123 $1,972,002 F = (A+E) Unit Costs Total - Power Supply $71.96 $69.06 $2.89 H = (A/G) Total - Power Generation ($5.19) ($6.33) $1.14 I = (E/G) Final Cost of Service to City of Dover Ratepayers $66.77 $62.74 $4.03 J =( H+I) 12

Operations Management NAES Corporation Dover, Delaware December 2014 Monthly Report Happy Holidays from McKee Run Generating Station! 13

Table of Contents 1.0 Environmental, Health, and Safety 2.0 Financial 3.0 Operations 4.0 Maintenance 5.0 CIP 6.0 General Plant Information 7.0 Summary of NAES Performance 14

1.0 Environmental, Health and Safety: During the month of December, there were no restricted work days or lost time accidents. The facility has now gone 4 years, two month and 17 days (1,539 days) through December 31, 2014 without an OSHA Recordable Accident or a Lost Time reportable accident. There were no Near Misses reported in December at McKee Run. Ken Beard, O&M Manager, received the NAES President’s “Good Catch” Award for reporting a Near Miss which occurred on November 5, 2014 while in the course of monitoring work activities on the Unit 3 Cooling Tower Project. During the month of December, a total of 15.45 tons of Special Waste was generated from the Unit 3 Cooling Tower Project. The Special Waste, which is pressure treated wood, was disposed of at the Delaware Solid Waste Authority (DSWA) facility in Sandtown, DE under permit #CSW 14.14. Additionally, 6.95 tons of Unit 3 construction and demolition debris were also disposed of at the DSWA site. The plant received no Notice of Violations (NOVs) during the month. The December DMR was submitted for the McKee Run site with no NPDES exceedences. Since no units ran in December, there were no opacity deviations from any unit in December. During the month of December, there were sixteen IWW discharges to the Kent County Public Works sewer system. The monthly sampling occurred on December 2, 2014. The laboratory analytical data indicated no exceedances. The December SIU Report was submitted to Kent County. The December DMR was submitted for the McKee Run site with no NPDES exceedances. The City of Dover VanSant submitted to DNREC a wet compression permit extension letter under permit #APC 1990/0183 dated September 14, 2014. As was discussed in a conference call in September 2014 with Mr. Jordan Matthews and Ms. Joanna French of DNREC, the plant will be faced with several challenges to complete this project. Some of these challenges will be prep work during the winter season, the late delivery of equipment, the installation and connections to electrical panels, diagnostic testing of the wet compression system and performance testing/tuning. DNREC has not responded to the extension request as of December 31, 2014. The McKee Run plant conducted a Facility Response Plan (FRP) drill on December 10, 2014. The drill was designed to test the reaction times of staff operators and supervisors in the event of an oil spill. The Oil Spill Response Organization (OSRO) also participated in the drill and responded with a crew support truck and spill trailer as well 15

as a vacuum truck. The EPA requires these pieces of equipment be present when conducting the FRP drill. The drill was written up and photo-documented to document this event. On December 23, 2014, DNREC performed their annual NPDES Storm Water Pollution Prevention audit. At the time of the audit, no issues were found except that the plant should install silt fencing around the storm drain for Outfall 005, located west of the Unit 3 Cooling Tower. DNREC inspected the storm water run-off at Outfall 005 and noticed it was slightly turbid at the time of inspection. The turbidity was directly related to construction activities at the Unit 3 tower. McKee Run immediately installed silt fencing and photo-documented its installation. These photos were forwarded to the DNREC inspector shortly after he left the site. On December 30, 2014, the DNREC inspector revisited the site as follow-up to the earlier inspection. No issues were found on the follow-up visit. On December 24, 2014, McKee Run collected the annual DNREC NPDES samples as part of the new NPDES permit issued on October 1, 2014. As directed by the permit, McKee Run collected PCB cogener samples at Outfall 001 and 004 and collected samples for pH and total recoverable iron. The samples were submitted to a special environmental laboratory for analysis. No results have been generated. Environmental, Health, and Safety Statistics Month Fiscal Year to Date (December) (7/1/14-6/30/15) NOVs 0 0 Opacity Deviations 0 1 Environmental Deviations 0 0 OSHA Recordable 0 0 OSHA LTA's 0 0 First Aid cases 0 0 Restricted Workday Accident 0 0 Near Miss 0 12 Man Hours Worked 4,251 79,523.25 Date last OSHA Recordable 10/14/10 Date last Lost Time Accident 10/14/10 Days since last OSHA recordable 1,539 Days since last Lost Time Accident 1,539 16

CAIR NOx Allowances Summary* NOx Allowances CAIR CAIR NOx Available Total NOx NOx Allowance Balance CAIR NOx NOx Allowances (Per Facility, Prior to Tons Emitted Allowances Allowance Sold YTD Sale) (Yr/ Season) Purchased Vintage McKee McKee VanSant YTD VanSant* Run McKee Run - Run* (Yr/Season) (Yr/Season) (Yr/Season) VanSant (Yr/Season) 2013 and 160/78 9/8 earlier 2014 0 71/46 5/3 40/35 - 4/1 0/0 – 0/0 31/11 1/2 Total NOx Allowance Balance 191/89 10/10 *Note – Emissions allowances are deducted according to oldest vintage first or unless otherwise directed. **Note – The facility transferred Ozone Season allowances to a third party. SO2 Allowances Summary SO2 Allowances Available SO2 Allowance SO2 Allowances (Per Unit, Prior to Sale & Total SO2 Tons Emitted– SO2 Allowances Vintage Sold - YTD Reconciliation) U3 and U11 YTD Balance* Unit #3 Unit #11 2013 and 0 10,365 690 2 11,053 earlier 2014 0 1850 138 1 1,987 Total SO2 Allowance Balance 13,040 *Note – Emissions allowances are deducted according to oldest vintage first, unless otherwise directed. 17

CO2 Allowances Summary CO2 CO2 CO2 Allowances Available Total CO2 CO2 Allowance Allowances (Per Facility, Prior to Tons Emitted Allowance Vintage Sold YTD Sale) Balance McKee Run VanSant 2013 and 0 194,244 7,799 82,700** 119,343** earlier 2014 0 0 0 25,426 (25,426) Total CO2 Allowance Balance 93,917** *Note: CO2 allowance values are provided by the RGGI CO2 Allowance Tracking System. Note: All emissions (NOx, SO2 and CO2) totals for 2013 are unofficial. #Note: Additional CO2 Emission Values were added to 2013 balances by RGGI COATS- 7,846.757 for McKee Run and 1,424.677 for VanSant **Note: 2011 and 2012 Emissions in previous reports were incorrect. The October 2014 Report now correctly reflects the actual emissions. NOx Summary – Ozone Season (May-Sep) Tons Year Unit #1 Unit #2 Unit #3 Unit #11 TOTAL 2012 1.2 1.0 35.8 1.0 33.1 2013 1.1 1.7 19.3 1.3 23.4 2014 0.4 0.6 35.0 0.8 36.8 NOx Summary - Year (Jan-Dec) Tons Year Unit #1 Unit #2 Unit #3 Unit #11 TOTAL 2012 1.2 1.1 35.8 1.0 36.9 2013 1.1 1.7 19.4 1.3 23.5 2014 0.8 1.1 39.8 3.7 45.4 SO2 Summary - Year (Jan-Dec) Tons Year Unit #1 Unit #2 Unit #3 Unit #11 TOTAL 2012 0.0 0.0 0.1 0.1 2013 0.0 0.0 0.0 0.2 0.2 2014 0.0 0.0 0.4 0.6 1.0 18

2.0 Financial Financial – Current Month Month – December Actual Budget Variance Personnel 354,145 241,400 (112,745) Materials & Supplies 9,402 16,700 7,298 Administrative Expenses 150,796 143,181 (7,615) Total $514,343 $401,281 ($113,062) Financial – Fiscal Year to Date Number of Months – 6 Actual Budget Variance Personnel 1,557,795 1,661,200 103,405 Materials & Supplies 195,087 151,550 (43,537) Administrative Expenses 1,139,323 1,113,286 (26,037) Total $2,892,205 $2,926,036 $33,831 2.1 Variance analysis: The actual expenses for the month of December are $514,343 against a budgeted amount of $401,281 for an unfavorable variance of $113,062 or 28.17%. The variance was due to the following: PERSONNEL EXPENSES – An unfavorable monthly variance of $112,745 was due to three (3) payroll periods being expensed versus the two (2) that were budgeted. As a result, this impacted three (3) labor accounts – Straight Time, Overtime, and Labor Burdens. MATERIALS AND SUPPLIES EXPENSES- A favorable monthly variance of $7,298 was due to funds budgeted for computer replacements in December were spent earlier in the FY. ADMINISTRATIVE EXPENSES – An unfavorable monthly variance of $7,615 due to higher than anticipated electricity costs. A portion of this was offset by funds for breaker and relay testing that has been deferred to the spring 2015 outage. The forecasted expenses for this fiscal year are $6,124,769 expensed versus an approved budget of $6,141,100 thereby realizing a 99.73% expenditure rate. 19

3.0 Operations Unit Operations / Outages / Trips: The Planned Outage for Units 1, 2 and 11 was cleared at 0700 hours on December 1, 2014. The Planned Outage for Unit 3 was cleared on December 11, 2014 at 0700 hours. The repair activity on Unit 3 Cooling Tower continues however it is available for use if Unit 3 is dispatched. Additional fuel oil was purchased to increase tank inventories at both McKee Run and VanSant Generating Stations to take advantage of low fuel oil costs. Month - December 2014 McKee McKee McKee MRS VanSant Total Unit 1 Unit 2 Unit 3 Facility Unit 11 All Units Capacity MW 17 17 102 136 39 175 On Line Hours Hrs 0.0 0.0 0.0 0.0 0.0 0.0 Starts # 0 0 0 0 0 0 Gross Generation MWh 0.0 0.0 0.0 0.0 0.0 0.0 Net Generation MWh 0.0 0.0 0.0 0.0 0.0 0.0 Total Auxiliaries MWh 0.0 0.0 0.0 0.0 0.0 0.0 Auxiliaries purchased MWh 33.968 33.968 170.097 238.033 5.790 243.823 Fuel Gas Used MMBTU 0.0 0.0 0.0 0.0 0.0 0.0 Fuel Oil Used MMBTU 0.0 0.0 0.0 0.0 0.0 0.0 Fuel Oil Used Gallons 0.0 0.0 0.0 0.0 0.0 0.0 Total Fuel MMBTU 0.0 0.0 0.0 0.0 0.0 0.0 Net Heat Rate BTU/KWh 0.0 0.0 0.0 0.0 0.0 0.0 Unit Trips # 0 0 0 0 0 0 Capacity Factor % 0.0 0.0 0.0 0.0 0.0 0.0 Availability Factor % 99.06 99.06 66.80 88.31 99.06 90.99 Commercial % 0.0 0.0 0.0 0.0 0.0 0.0 Unavailability (CU) Planned Outage Hours Hours 7.000 7.000 247.000 261.000 7.000 268.000 Maintenance Outage Hours 0.0 0.0 0.0 0.0 0.0 0.0 Hours Forced Outage Hours Hours 0.0 0.0 0.0 0.0 0.0 0.0 Reserve Shutdown Hours 737.000 737.000 737.000 497.000 737.000497.000 1,971.000 737.000497.000 737.000 1,971.000 1,971.000 497.000 2,708.000 1,971.000 737.000 737.000 1,971.000 1,971 73 Hours HW Boiler Gas Usage MMBTU 1,315.00 1,315.00 Pilot Gas Usage MMBTU 0.0 0.0 0.0 0.0 # Note: Does not include HWB or Pilot Gas. Fuel usage numbers are taken from fuel flow instruments. 20

2014-2015 Fiscal Year-to-Date (6 Months) McKee McKee McKee MRS VanSant Total Unit 1 Unit 2 Unit 3 Facility Unit 11 All Units Capacity MW 17 17 102 136 39 175 On Line Hours Hrs 30.966 35.134 433.682 499.782 17.350 517.132 Starts # 3 5 33 41 5 46 Gross Generation MWh 261.694 252.941 22,525.426 23,040.061 578.081 23,618.142 Net Generation MWh 247.853 233.930 20,511.856 20,993.639 567.702 21,561.341 Total Auxiliaries MWh 176.017 181.187 3,446.639 3,803.843 16.423 3,820.266 Auxiliaries purchased MWh 162.176 162.176 1,483.189 1,807.541 16.044 1,823.585 Fuel Gas Used MMBTU 3,780.381 3,255.417 238,464.654 245,500.452 7,544.726 253,045.178 Fuel Oil Used MMBTU 0.0 0.0 0.0 0.0 0.0 0.0 Fuel Oil Used Gallons 0.0 0.0 0.0 0.0 0.0 0.0 Total Fuel MMBTU 3,780.381 3,255.417 238,464.654 245,500.452 7,544.726 253,045.178 Net Heat Rate BTU/KWh 15.253 13.916 11.825 13.664 13.278 13.471 Unit Trips # 1 3 0.0 4 1 5 Capacity Factor % 0.33 0.31 4.55 3.44 0.33 2.75 Availability Factor % 49.23 49.23 54.49 50.98 49.23 50.55 Commercial % 0.0 0.0 0.17 0.05 0.0 0.04 Unavailability (CU) Planned Outage Hours Hours 1,512.000 1,512.000 1,752.000 4,776.000 1,512.000 6,288.000 Maintenance Outage Hours 0.0 0.0 0.0 0.0 0.0 0.0 Hours Forced Outage Hours Hours 0.0 0.0 7.667 7.667 0.0 7.667 Reserve Shutdown Hours 2,873.034 2,868.866 2,222.651 7,964.551 2,886.650 10,851.201 Hours HW Boiler Gas Usage MMBTU 2,021.095 2,021.095 Pilot Gas Usage MMBTU 527.631 527.631 1,055.263 1,055.263 Fuel Oil Inventory Monthly Monthly Fuel Monthly FY 14-15 Fuel FY 14-15 Inventory Inventory Purchases Inventory Inventory Purchases Inventory (Start) (End) (Month) (Change) (Start) (FYTD) (Change) McKee Run (#2 Fuel Oil) 679,444 722,625 45,177 43,181 452,963 279,528 269,662 VanSant 180,433 216,587 37,371 36,154 73,572 148,595 143,015 (#2 Fuel Oil) Note: As measured by tank level instruments. Tank levels may change due to oil temperature. VanSant Lifetime through December 2014 Actual Starts Factored Starts Fired Hours VanSant 1372 2,349.75 4,333.90 Since HGP - Dec 2004 261 682.05 950.32 21

Team Report: Operations personnel continue to support maintenance by working on Preventative Maintenance (PM) work orders and other work orders that they have the skills to successfully complete the task. The Operations Department continues to utilize the Day Shift Workers in both the Operations and Maintenance areas to help in maintaining the plant. The Operations staff supported maintenance activities during the outage by serving as Confined Space Attendants for confined space areas as well as other support tasks. The Operations staff also supported the outage by clearing various LO/TO tasks to put equipment back in service to make the units available to the PJM system once the outage was cleared. Staff continues to ensure the units are in readiness condition should they be dispatched. Capacity Testing – FY 2014-2015 Summer 2014 (June 1- Aug 31) Winter 2014-2015 (Dec 1- Feb 28) Unit Rated Net Reported Net Unit Rated Net Reported Net Capability (MW) Capability (MW) Capability (MW) Capability (MW) 1 17 17.4 1 17 17* 2 17 17.5 2 17 17* 3 102 103.99 3 102 102* 11 39 39.8# 11 39 39* Total 175 175 Total 175 175 Note: * Denotes Unit is qualified for the PJM Winter Demonstration Period Exemption Program. Note: # Depicts Net Corrected Capacity for Ambient Air Conditions – VanSant Unit only 4.0 Maintenance During the month of December, the Plant Maintenance staff continued addressing the backlog of work orders. There were seventy-eight work orders issued with seventy-six work orders being completed during the month. There were no safety work orders entered into the plant’s Computerized Maintenance Management System (MP2) during the month. The table below summarizes the monthly work order activities. 22

Work Order Report December - 2014 Outstanding From Outstanding Previous Issued This Completed at the end of Priority # Month Month This Month the month 1 24 14 18 20 2 44 3 10 37 3 32 11 3 40 4 6 0 2 4 5 14 0 2 12 SW1 1 0 1 0 SW2 0 0 0 0 SW3 0 0 0 0 SW4 0 0 0 0 SW5 0 0 0 0 PM 18 50 40 28 EM 0 0 0 0 Totals 139 78 76 141 Note: PM Work Orders are included in the priority totals Notable activities during the month include: The NAES Maintenance staff removed and replaced the Unit 1Hotwell manual inlet and by-pass valves. The valves were replaced due to the valves leaking by thereby causing inconsistent hotwell level during unit operation. The replacement of the valves will provide operations improved control of the Hotwell level when operating the unit if n the future. The NAES Maintenance Staff installed a check valve and rerouted a vent line in the industrial waste water line just before the line enters the sewer system. This was installed to correct inaccurate flow readings on the industrial waste water discharge to the sewer each day. The NAES IC&E Staff replaced the external flow meter sensor and flow meter transmitter with a new magnetic type sensor and operator friendly transmitter on both the industrial waste water discharge line and the sanitary sewer discharge lines. The new equipment will provide more reliable readings of wastewater being discharged to the City/County sewer for environmental recording purposes and for sewer billing purposes. 23

5.0 Capital Improvement Projects (CIP) Project Description Update Number Progress: All work planned is now complete. Follow-up activities include contacting suppliers for the replacement of the damaged rotor expansion instrumentation. This equipment is obsolete and will be replaced with current technology. Replacement of other turbine supervisory instrumentation will also be investigated. High vibration experienced EG1212 Unit 3 Turbine Repairs during hot starts will require an additional balancing. Plant staff is collecting data that will help determine where and how much balance weight will need to be installed in the next outage. Schedule: Continuing to pursue the replacement rotor expansion instrumentation and evaluate balancing of turbine-generator for Spring 2015 Outage. Progress: Contractor began work on September 29 and continued work until Christmas. At this time, three cells were complete excepting minor punch list items and the other two cells were nearing completion. Work Unit #3 Cooling Tower EG1402 will continue once remaining materials are on site. Repairs Schedule: Shortage of materials to complete work was encountered and has been addressed. Parts and manpower are expected in late January or early February. Progress: Work is complete and final report has been received. Several McKee Run HEP Pipe answers to follow-up questions are lacking but will not affect report. EG1406 Repairs Schedule: Final report received and project may be expected to be closed once all invoicing has been submitted and paid. Progress: Project on Hold. Metering System Schedule: Project is on Hold until next year when RFP process will begin EG1407 Upgrades again. Project would be slated to be completed once Units 1 and 2 are taken out of service. Progress: No progress made on equipment installation during the month due to plant maintenance support of planned outage. The secondary VanSant Capacity breaker equipment and additional MCC equipment has been received. EG1416 Increase Schedule: Coordination with electrical contractor to develop a timeline to install the equipment and make tie-ins prior to the Spring Outage is forthcoming. Other miscellaneous materials are on order. Unit #3 Auxiliary Progress: Work scopes being developed for the Spring 2015 Outage. EG1503 System Component Schedule: Spring 2015 Outage work scopes being developed. Replacement Unit#3 Boiler System Progress: Work scopes being developed for the Spring 2015 Outage. EG1504 Schedule: Spring 2015 Outage work scopes being developed. Repairs VanSant Station Progress: Work scope is being deferred until next FY. EG1505 Component Schedule: Work scopes will continue to be developed for next fiscal year. Replacement Progress: Contract had been awarded; parts ordered and have been McKee Run/VanSant EG1506 received. Safety Improvements Schedule: Scheduling of work is in planning stages for spring 2015 outage. 24

Installation will commence once parts arrive. Some work will require planned power outage to accomplish tie-in of circuitry and equipment. McKee Run Units #1-#2 Progress: Project on Hold EG1507 Component Schedule: Project on Hold Replacement Progress: Plant staff completed development of paint specifications and bid requests were to be received in mid-August. McKee Run/VanSant EG1508 Schedule: Re-evaluation of work scope and bids is needed given the Structural Preservation amount of time since the bids were originally received. 6.0 General Plant Information Sarah Maher began work on December 15, 2014 in the position of Administrative Assistant. Since coming onboard, she has had many opportunities to meet plant staff and is readily adapting to her new work environment. On-going efforts are being made to fill two (2) open Operator positions. Interviews have been held in this effort. Training: Onsite coaching and supervising training was held for leadership staff members on December 3 and 4, 2014 by Fred Pryor Seminars. Topics were; “How to Become a More Effective Supervisor”, “Leadership, Team-Building, and Coaching Skills”, and “Training the Trainer”. Topics discussed during the monthly safety committee meeting were reviewed by the entire staff. The monthly safety topic was on “Strains and Sprains”. Calendar of Events Date Winter Capacity Period December 1, 2014 to February 28, 2015 Title V Annual Certifications Due January 31, 2015 NOx Emissions Reconciliation Due March 1, 2015 SO2 Emissions Reconciliation Due March 1, 2015 SARA III / Tier II Report Due March 1, 2015 Units 1, 2, and 3 Spring Outage TBD – Spring 2015 Unit 11 Spring Outage TBD – Spring 2015 Air Emission Inventory April 30, 2015 NOx Ozone Season Starts May 1, 2015 PJM Summer Capacity Test Period June 1, 2015 – August 31, 2015 FY 2014-201454 Budget Year Begins July 1, 2015 Toxic Release Inventory (TRI) Annual Report July 1, 2015 Semi-Annual Title V Certification Due July 31, 2015 NOx Ozone Season Ends September 30, 2014 Annual VanSant Black Start Test TBD Units 1, 2, 3 and 11 Fall Outage Starts TBD Five Years Accident Free October 14, 2015 25

7.0 Summary of NAES Performance to Date Plant Performance FY 2014-2015 Measure Month Year to Date YTD FY Maximum Incentive Incentive Commercial 0.00% 0.05% $94,679 $96,875 Unavailability (CU) Safety 0 0 $18,163 $18,163 Environmental 0 0 $18,163 $18,163 Capacity Tests Summer Winter Summer Winter Completed Unit 1 No No Yes Yes* $3,634 $3,634 Unit 2 No No Yes Yes* $3,634 $3,634 Unit 3 No No Yes Yes* $21,797 $21,797 Unit 11 No No Yes Yes* $7,266 $7,266 Total YTD 98.7% Total YTD Incentive $167,335 $169,532 Incentive % Note*: All units have successfully completed the Summer (FY 2014-2015) Testing for PJM and are now entered in the PJM Winter Capacity Test Exemption Program. 26

III. Appendix 1 – PJM Invoice Breakdown Gen Load Grand Total 480-8102-592-95-49 1610 Locational Reliability $814,257.78 $814,257.78 2630 Capacity Transfer Rights $60.76 $60.76 2661 Capacity Resource Deficiency ($2,189.13) ($2,189.13) 480-8102-592-95-49 Total $812,129.41 $812,129.41 480-8102-592-95-50 1600 RPM Auction $14,753.52 $14,753.52 2600 RPM Auction ($740,512.50) ($740,512.50) 480-8102-592-95-50 Total ($725,758.98) ($725,758.98) 480-8102-592-95-90 1100 Network Integration Transmission Service $420,278.16 $420,278.16 1108 Transmission Enhancement $65,748.32 $65,748.32 1242 Day-Ahead Load Response Charge Allocation $140.66 $140.66 1243 Real-Time Load Response Charge Allocation $412.26 $412.26 1301 PJM Scheduling, System Control and Dispatch Service - Control Area Administration $10,461.70 $10,461.70 1302 PJM Scheduling, System Control and Dispatch Service - FTR Administration $17.61 $17.61 1303 PJM Scheduling, System Control and Dispatch Service - Market Support $2,392.76 $2,392.76 1304 PJM Scheduling, System Control and Dispatch Service - Regulation Market Administration $79.98 $79.98 1305 PJM Scheduling, System Control and Dispatch Service - Capacity Resource/Obligation Mgmt. $952.63 $952.63 1306 PJM Scheduling, System Control and Dispatch Service - Advanced Second Control Center $1,341.55 $1,341.55 1307 PJM Scheduling, System Control and Dispatch Service - Market Support Offset ($241.15) ($241.15) 1308 PJM Scheduling, System Control and Dispatch Service Refund - Control Area Administration ($1,428.27) ($1,428.27) 1310 PJM Scheduling, System Control and Dispatch Service Refund - Market Support ($328.94) ($328.94) 1311 PJM Scheduling, System Control and Dispatch Service Refund - Regulation Market Administration ($13.62) ($13.62) 1312 PJM Scheduling, System Control and Dispatch Service Refund - Capacity Resource/Obligation Mgmt. ($115.63) ($115.63) 1313 PJM Settlement, Inc. $241.15 $241.15 1314 Market Monitoring Unit (MMU) Funding $248.17 $248.17 1315 FERC Annual Recovery $4,340.47 $4,340.47 1316 Organization of PJM States, Inc. (OPSI) Funding $43.28 $43.28 1317 North American Electric Reliability Corporation (NERC) $1,472.86 $1,472.86 1318 Reliability First Corporation (RFC) $2,095.72 $2,095.72 1320 Transmission Owner Scheduling, System Control and Dispatch Service $4,594.01 $4,594.01 1330 Reactive Supply and Voltage Control from Generation and Other Sources Service $36,011.64 $36,011.64 1340 Regulation and Frequency Response Service $8,936.92 $8,936.92 1360 Synchronized Reserve $5,146.49 $5,146.49 1362 Non-Synchronized Reserve $519.06 $519.06 1365 Day-ahead Scheduling Reserve $0.05 $0.05 1370 Day-ahead Operating Reserve $7,802.63 $7,802.63 1371 Day-ahead Operating Reserve for Load Response $2.07 $2.07 1375 Balancing Operating Reserve $3,508.37 $3,508.37 1376 Balancing Operating Reserve for Load Response ($0.43) ($0.43) 1378 Reactive Services $4,610.99 $4,610.99 1380 Black Start Service $1,934.81 $1,934.81 1730 Expansion Cost Recovery $408.27 $408.27 1911 Michigan - Ontario Interface Phase Angle Regulators $177.61 $177.61 1932 Generation Deactivation Refund ($665.52) ($665.52) 2108 Transmission Enhancement ($63,193.77) ($63,193.77) 2140 Non-Firm Point-to-Point Transmission Service ($1,276.52) ($1,276.52) 2420 Load Reconciliation for Transmission Losses ($267.28) ($267.28) 2510 Auction Revenue Rights ($54,971.37) ($54,971.37) 2666 Load Management Test Failure ($1,153.23) ($1,153.23) 2912 CT Lost Opportunity Cost Allocation ($48.36) ($48.36) 1309 PJM Scheduling, System Control and Dispatch Service Refund - FTR Administration ($2.08) ($2.08) 480-8102-592-95-90 Total $460,214.03 $460,214.03 480-8102-592-95-91 1200 Day-ahead Spot Market Energy $440,646.44 $440,646.44 1205 Balancing Spot Market Energy $22,671.08 $22,671.08 1210 Day-ahead Transmission Congestion ($118,552.85) ($118,552.85) 1215 Balancing Transmission Congestion $5,087.76 $5,087.76 1220 Day-ahead Transmission Losses $15,058.48 $15,058.48 1225 Balancing Transmission Losses $991.81 $991.81 1230 Inadvertent Interchange ($248.91) ($248.91) 1250 Meter Error Correction ($5,534.48) ($5,534.48) 1400 Load Reconciliation for Spot Market Energy $29,773.41 $29,773.41 1410 Load Reconciliation for Transmission Congestion ($5,367.20) ($5,367.20) 1420 Load Reconciliation for Transmission Losses $390.23 $390.23 1430 Load Reconciliation for Inadvertent Interchange $6.63 $6.63 1440 Load Reconciliation for PJM Scheduling, System Control and Dispatch Service $151.14 $151.14 1441 Load Reconciliation for PJM Scheduling, System Control and Dispatch Service Refund ($20.72) ($20.72) 1442 Load Reconciliation for Schedule 9-6 - Advanced Second Control Center $20.88 $20.88 1444 Load Reconciliation for Market Monitoring Unit (MMU) Funding $2.86 $2.86 1445 Load Reconciliation for FERC Annual Recovery $51.38 $51.38 1446 Load Reconciliation for Organization of PJM States, Inc. (OPSI) Funding $0.51 $0.51 1447 Load Reconciliation for North American Electric Reliability Corporation (NERC) $7.83 $7.83 1448 Load Reconciliation for Reliability First Corporation (RFC) $11.13 $11.13 1450 Load Reconciliation for Transmission Owner Scheduling, System Control and Dispatch Service $54.38 $54.38 1460 Load Reconciliation for Regulation and Frequency Response Service $206.82 $206.82 1470 Load Reconciliation for Synchronized Reserve $5.31 $5.31 1472 Load Reconciliation for Non-Synchronized Reserve $6.49 $6.49 1478 Load Reconciliation for Balancing Operating Reserve $8.43 $8.43 1490 Load Reconciliation for Reactive Services $11.52 $11.52 480-8102-592-95-91 Total $385,440.36 $385,440.36 480-8102-592-95-93 2220 Transmission Losses ($22,611.84) ($22,611.84) 2330 Reactive Supply and Voltage Control from Generation and Other Sources Service ($29,467.58) ($29,467.58) 480-8102-592-95-93 Total ($52,079.42) ($52,079.42) Grand Total $ (777,838.40) $ 1,657,783.80 $879,945.40 27

City of Dover Electric Revenue Fund FY15 - White Oak Solar Park Incremental Cost Original July August September October November December YTD Budget Power Supply & Generation Dover Sun Park - Energy $ 227,139 $ 219,981 $ 185,885 $ 140,672 $ 96,640 $ 54,849 $ 925,165 $ 2,067,600 Dover Sun Park - REC's 47,469 42,307 33,221 25,192 17,303 - 165,492 378,600 Total Power Supply Cost 274,609 262,288 219,105 165,864 113,943 54,849 1,090,657 2,446,200 Non-Solar Power Supply Cost (170,970) (136,533) (97,948) (80,182) (63,893) (26,336) (575,862) (717,778) Incremental Energy Cost $ 103,639 $ 125,755 $ 121,157 $ 85,682 $ 50,050 $ 28,513 $ 514,795 $ 1,728,422 Revenues Customer Sales - Electricity (9,870) (8,024) (7,893) (7,840) (8,061) (8,135) (49,823) (84,600) Rent Receipts (14,807) - - (14,807) - - (29,614) (101,400) Total Revenues (24,677) (8,024) (7,893) (22,647) (8,061) (8,135) (79,437) (186,000) Incremental Sun Park Cost $ 78,962 $ 117,731 $ 113,264 $ 63,034 $ 41,989 $ 20,378 $ 435,358 $ 1,542,422 MWh Purchased/Generated - Solar 2,217.724 2,006.392 1,602.868 1,213.000 833.320 472.956 8,346.260 18,159.000 MWh $ Solar Energy $ 102.42 $ 109.64 $ 115.97 $ 115.97 $ 115.97 $ 115.97 $ 110.85 $ 113.86 Solar REC's MWh 332.000 301.000 240.000 182.000 125.000 - 1,180.000 MWh $ Solar REC (one month lag)* 142.98 140.56 138.42 138.42 138.42 - $ - MWh $ Non-Solar Energy $ 77.09 $ 68.05 $ 61.11 $ 66.10 $ 76.67 $ 55.68 Note: Solar REC's are one month behind due to the time the invoice is received.