Attachment

UTILITY COMMITTEE AGENDA SEPTEMBER 14, 2015 - 5:00 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. ANNEXATION REQUEST - EASTERLY SIDE OF NIXON LANE AND 121 ACORN LANE, OWNED BY PAUL C. PHILLIPS AND THERESA HOSHUE (TAX PARCELS: ED-00-068.19-01-25.00-000 (LOT 1) AND ED-00-068.19-01-25.01-000 (LOT 2); COUNCIL DISTRICT: 3; PLANNING REFERENCE: AX-15-01) (STAFF RECOMMENDS THAT THE CITY PROCEED WITH ANNEXATION OF THE SUBJECT PROPERTIES) 2. EVALUATION OF PROPOSALS - NORTH AMERICAN ELECTRIC RELIABILITY CORPORATION (NERC)/ RELIABILITY FIRST CORPORATION (RFC) SUPPORT AND INTERNAL AUDIT REVIEW (RFP 15-0032EL) (STAFF RECOMMENDS AWARDING THE CONTRACT TO NAES CORPORATION IN THE AMOUNT NOT TO EXCEED $116,285) 3. OVERVIEW OF HEDGE PROGRAM (COMMITTEE ACTION NOT REQUIRED) 4. TEA/NAES REPORT (JULY) (STAFF RECOMMENDS ACCEPTANCE OF THE REPORT) 5. UPDATES (COMMITTEE ACTION NOT REQUIRED ON THE BELOW ITEMS) A. GREEN ENERGY FUNDING AND PROGRAMMING B. GARRISON OAK TECHNICAL PARK PROJECT UPDATES A-1. CITY INFRASTRUCTURE A-2. CALPINE ENERGY CENTER A-3. DOVER SUN PARK 6. ADJOURNMENT BY 5:50 P.M. /tm S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Committee-Agendas\2015\09-14-2015 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.

PETITION TO ANNEX AND REZONE PROPERTY First Reading before the Dover City Council Utility Committee September 14, 2015 Applicants/Owners: Paul Phillips Theresa Hoshue Property Address: Nixon Lane (no address assigned) – Lot 1 121 Acorn Lane – Lot 2 Tax Parcel ID #: ED-00-068.19-01-25.00-000 ED-00-068.19-01-25.01-000 Size: Lot 1 - 0.5171 +/- acres Lot 2 - 0.4609 +/- acres Present Use: Residential Proposed Use: Residential Comprehensive Plan Designation: Category 1 – High Priority Annexation Areas Comprehensive Plan Land Use Designation: Residential Low Density Present Zoning: RS1 (Single Family Residential) Proposed Zoning: R-8 (One Family Residence) Utility Availability: The property is currently served by City of Dover Electric. 121 Acorn Lane is currently served by City water and sewer. There are sanitary sewer and water service available in Nixon Lane. The property owner would be responsible for the costs associated with tapping the sanitary sewer and water mains, extending services to the property, payment of impact fees, and obtaining permits associated with such improvements. Staff Recommendation: Staff recommends that the City proceed with annexation of the subject property. File Number: AX-15-01

City of Dover Application No.: AX-15-01 Department of Planning & Inspections RM-1 R-8 ve co ck A Han R-8 R-20 Ave ki ns R-8 Hop ROS n Ln Nixo r C me ir Cl y R-8 R-20 rn Aco ROS R-20 Ln R-8 R-8 o Mah R-8 Site gan y Pl Shadybrook Dr S RG-2 Girl l t cia P en C Aca t Ln Lind R-8 R- co u R-8 8 Teak Ct R-8 R-8 R-7 s Willi ROS Rd Division St Little Creek Rd R-8 Marta Dr R-8 Title: Lands of Paul C. Phillips and Theresa HoShue Application #: AX-15-01 Address: 121 Acorn Lane, (unaddressed) Nixon Lane Legend Parcel ID: ED-00-068.19-01-25.01-000, ED-00-068.19-01-25.00-000 Zoning: R-8 (One Family Residence Zone) proposed Dover Boundary Owner: Paul C. Phillips and Theresa HoShue Zoning Date: 8/14/2015 Dover Parcels « Kent County Parcels 0 150 300 600 Feet Subject Property

ACTION FORM PROCEEDING: Utility Committee DEPARTMENT OF ORIGIN: Electric DATE SUBMITTED: 8/24/2015 PREPARED BY: Harry A. Maloney, III, Electric Director / Paul Waddell, Engineering Superintendent/ Bhadresh Patel, Electric Engineer SUBJECT: Evaluation of Proposals for North American Electric Reliability Corporation (NERC)/ Reliability First (RFC) Support & Internal Audit Review REFERENCE: N/A RELATED PROJECT: N/A REVIEWED BY: City Manager & Controller/Treasurer EXHIBITS: Exhibit A – RFP Tabulation, Exhibit B – Proposal Chart EXPENDITURE REQUIRED: $116,285 AMOUNT BUDGETED: $175,000 FUNDING SOURCE (Dept./Page in CIP & Budget): Electric Administration FY16 - Page 273 TIMETABLE: Work will commence upon final approval from City Council RECOMMENDED ACTION: Staff recommends awarding contract to NAES Corp in the amount not to exceed $116,285. BACKGROUND AND ANALYSIS The Electric Utility is scheduled for a North American Electric Reliability Corporation (NERC) internal audit by its contractor Reliability First Corporation (RFC) in April 2016. Given the high turnover rate in the Electric Department supervision over the last three (3) years, staff is recommending that the Utility Committee and City Council approve the request for audit/consultation services for the regulated aspects of the electric operations. While we provide monthly, quarterly and yearly audit material/evidence to RFC to prove our compliance, the annual items they request material for are only a snapshot of the total standard list applicable to the City of Dover’s (COD) current registration as a Distribution Provider (DP) and Load Serving Entity (LSE). In order to ensure 100% compliance with all regulatory standards, this audit consultation will provide us with standardized, clear and concise documentation to prove why we do what we do, offer a path forward to implement a viable self-improvement and assessment program, and also avoid any possible findings that may result in fines for non-compliance. The Electric Department issued a Request for Proposal (RFP) 15-0032EL, NERC/RFC Support and Internal Audit Review to solicit external auditing agencies for their services in the preparation of the NERC/RFC compliance audit slated for calendar year 2016. Proposals were received from eleven (11) prospective vendors with quotes ranging from $28,100 on the low end to a high dollar quote of $614,000. The Electric Director, Engineering & Systems Operations Superintendent Electrical Engineer for Substations reviewed all the proposals and ranked them in preference order based on completeness of proposal, company experience, estimated hours, cost per hour, travel cost additions, and total costs. The list of eleven (11) vendors was narrowed down to three (3) finalists. Teleconferences and in-person meetings were conducted to ask a base set of questions to help decide the most qualified vendor for the City of Dover. After careful deliberation, staff recommends the approval of the proposal from NAES Corporation for the amount not to exceed $116,285. This company offered the best mix of experience in both the operational and compliance arenas of the electric utility with 160+ audits. Their proposal also met all of the criteria in the RFP and they have full-time personnel located in New Castle, Delaware.

Exhibit A

Exhibit A

Exhibit B Company Experience Activity cost Travel/Misc costs Total cost Est hrs Cost per hr Mock Audit included Addendum 1. NAES 150 audits $99,785 $16,500 $116,285 544 $183 N Y 2. Proven Compliance 175 projects $108,570 $38,500 $147,070 493 $220 N Y 3. Utility Services 90 audits $118,800 $8,000 $126,800 528 $225 Y Y AESI 100 projects $572,000 $42,000 $614,000 2,394 $239 N Y Anfield Group 60 audits $69,500 $3,900 $73,400 328 $212 N N Corporate Risk 200 audits $138,468 Not listed $138,468 Not listed #VALUE! N N GDS 60 audits $102,500 $13,000 $115,500 560 $183 N N SOS 100 projects $191,295 $6,240 $197,535 1,013 $189 N N 9. Intellibind 100+ clients $27,000 $1,100 $28,100 ??? $225 N N 10. Altran ? $179,000 $7,000 $186,000 1,133 $158 N Y 11. Burkard & Assoc 65 audits $47,050 $15,600 $62,650 287 $164 Y Y

Monthly Management Committee Update – July 2015 August 27, 2015 Prepared by: Arline Holloway Client Services Manager 904.360.1347 aholloway@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 $1,172,561 below budget predominantly driven by extremely low Energy, Congestion and Losses. Dover’s budgeted cost for all power supply (capacity AND energy) was $73.38/MWh. The actual cost of all power supply (capacity AND energy) was $59.68/MWh resulting in a positive budget variance of $13.70. The cost of energy alone was $39.93/MWh, versus a budgeted energy cost of $51.47. Dover’s hedge purchases totaled 57,536 MWh, which was 75% of the actual load. The budgeted hedge purchase totaled 55,736 MWh which was 71% of the budgeted load. Dover’s power purchases from hedge transactions totaled $2,670,864. Purchases from PJM (energy and fees) totaled $1,552,013. This number includes DA spot market energy charges of $838,512.25, increased Local Reliability Charges (LRC) to $904,154.061. DA Transmission Congestion was ($568,635.86) for the load. Dover’s total load was 76,867 MWh versus a forecasted load of 78,500 MWh. Dover’s planned energy purchase from the SunPark solar installation was 2,035 MWhs. Dover’s actual energy purchase from the SunPark installation was 2,084 MWh. 1 As of June 1st 2015 the Zonal Capacity rate used in the LRC calculation increased from $145.37277 to $166.935259.

I. Supply Source Summary: II. Supply Variance: Purchased Power Variance Report: July Budget Actual Variance Gross Load 78,500 76,867 1,633 Wholesale Load 76,465 74,783 1,682 Hedged Volume (MWh) 55,736 57,536 (1,800) Unhedged Volume (MWh) 20,729 17,247 3,482 Dover SunPark Volume (MWh) 2,035 2,084 (49) Renewable Energy Credits Volume 305 290 15 Hedged Cost ($/MWh) $ 46.23 $46.42 $ (0.19) Unhedged Energy Cost ($/MWh) $ 59.09 $ 9.08 $ 50.01 Solar Energy Cost ($/MWh) $ 117.35 115.97 $ 1.38 Energy Costs ($/MWh) $51.47 $39.93 $11.54 All-in Costs - Energy, Capacity and RECs ($/MWh) $73.38 $59.68 $13.70

b. Generation Summary: Net generation revenue for the month of July was $533,638 versus a budget of $492,400.

Generation Breakdown: City of Dover Monthly Wholesale Generation Formula July 2015 Net Generation 4135.54 D Production Margin PJM - Generation Economic and Reliability Dispatch $ 281,682.47 A Natural Gas & Oil Consumption Purchases for Generation $ (148,620.57) Natural Gas Transport $ (26,183.46) Eastern Shore Cashout $ 23.73 Oil Consumption $ 28,067.94 Subtotal: Natural Gas & Oil Consumption $ (146,712.36) B Gross Production Margin $ 134,970.11 C = (A + B) $/MWh Generation Production Gross Margin $ 32.64 E = (C/D) PJM - Capacity Generation Capacity Credit $ 902,145.57 Reactive Supply and Transmission Losses $ 85,793.32 Subtotal: PJM - Capacity $ 987,938.89 F All in Generation Margin All in Generation Margin Total $ 1,122,909.00 (G = C + F)

c. Emissions Summary Emissions Allowance Summary through July 31, 2015 The reinstated Cross-State Air Pollution Rule (CSAPR) replaced the Clean Air Interstate Rule (CAIR) beginning January 1, 2015. The State of Delaware was included in the CAIR footprint but is not included in the CSAPR footprint. CAIR allowances cannot be used for CSAPR compliance, so Dover’s CAIR allowances essentially became valueless when CSAPR was reinstated. The separate Clean Air Act acid rain deposition control program (CAA Title IV) which governs SO 2 national allowance trading program remains in effect for Dover. Beginning with the January 2015 report, TEA no longer includes a CAIR summary. It will continue to report on Dover’s Clean Air Act Title IV SO 2 allowances. Market liquidity for Title IV SO2 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. Market Value for Clean Air Act Title IV Allowances Commodity $/Ton2 Tons Market Value SO2 Allowances – Title IV $0.51 15,018 $ 8,275 TOTAL $ 8,275 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). 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) and second compliance period (2012 – 2014). Any unused allowances are carried over (“banked”) for subsequent years. The table below includes Dover’s historical activities, and has been enhanced to include projections through 2020. Two projections are presented: (1) future annual emissions based on the average for 2009 – 2014, and (2) future annual emissions based on the highest emissions for 2009 – 2014. 2 August 24,, 2015 Daily Power Report by SNL Energy

Dover, DE RGGI Allowance History and Forecast - July 3, 2015 CO2 Tons EOY Historical CO2 Tons CO2 Tons Projected EOY Compliance CO2 Allowances Allocated CO2 Projected EOY Emitted - Allowance Emitted - Proj. Emitted - Proj. Balance Year (CY) Purchased Allowances Balance (High) Historical Balance (Avg) (High) (Average) 2009 62,184 5,796 56,388 2010 49,747 32,971 73,164 2011 37,311 17,763 92,712 2012 27,983 15,957 104,738 2013 24,818 10,213 119,343 2014 1,000 N/A 25,426 94,917 94,917 94,917 2015 10,000 N/A 7,340 97,577 18,021 33,000 86,896 71,917 2016 N/A 18,021 33,000 68,875 38,917 2017 N/A 18,021 33,000 50,854 5,917 2018 N/A 18,021 33,000 32,833 -27,083 2019 N/A 18,021 33,000 14,812 -60,083 2020 N/A 18,021 33,000 -3,209 -93,083 Dover RGGI Allowance History and Projection July 31, 2015 150,000 100,000 Tons of CO2 50,000 0 -50,000 -100,000 Historical CO2 Emissions Projected CO2 Emissions - Avg CO2 Tons Emitted - Proj. (High) EOY Historical Allowance Balance Projected EOY Balance (Average) Projected EOY Balance (High)

The table and chart indicate that Dover could run out of banked allowances as early as the end of 2016 under the high emissions scenario and by the end of 2019 under the average scenario. Therefore, Dover has recently initiated a program to participate in RGGI’s quarterly auctions to insure it has adequate allowances in the future. In anticipation of needing additional RGGI allowances in the future, Dover participated in Auction 26 held on December 3, 2014, Auction 27 held on March 11, 2015 and Auction 28 held on June 3, 2015. It was awarded 1,000 allowances from its highest price bid, at the auction clearing price of $5.21/ton in Auction 26, 6,000 allowances in Auction 27 at the auction clearing price of $5.41/ton and 4,000 allowances in Auction 28 at the auction clearing price of $5.50/ton. The next quarterly RGGI auction will be held on September 9th, 2015. Based on the August 21, 2015 ICE price for the September 2015 strip ($6.16/ton), the estimated market value of Dover’s existing 97,5773 ton RGGI allowance bank is $601,0744 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 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 generation month June 2015, Dover had accumulated a total of 7,853 SRECS from these renewable energy resources, net of 2,941 SREC transferred to DEMEC for retirement on October 3, 2014 in accordance with the RPS requirement for the first compliance period. Delaware periodically holds SRECs auctions, however 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 T4 SRECs in Delaware. The nearest viable market for Dover’s SRECs is Pennsylvania. Daily settlement prices from Flett Exchange Environmental Services and SREC Trade. The most recent settlement prices for Pennsylvania SRECS are used in the table below. 3 Subject to verification from RGGI COATS account. 4 i.d.

SREC Vintage Market Clearing Price SREC Balance Market Value (June 1 – May 31) 2012/2013 $12.50 2,173 $27,163 2013/2014 $12.50 2,701 22,762 2014/2015 $15.00 2,687 40,305 2015/2016 $15.00 292 4,380 TOTAL 7,853 $105,610 Market prices for Pennsylvania SRECs continue to decrease. For example, 2014/15 SRECs were valued at $28.00 in May, compared to $15.00 in this month’s report. Market prices for SRECs continue to decline due to increased penetration of solar generation, due in part to rapidly declining installation costs. TEA continues to recommend to Dover to retain these allowances for compliance with its Renewable Portfolio Standard (RPS). Additionally, Dover will need to acquire additional SRECs in future years. d. Risk Management Summary: Forward power prices in PJM have increased from last month. The current projected cost of service is below: Monthly Blended Cost PY Hedge Ratio Change ($/MWh) ($/MWh) 2015-16 71% $ 43.45 $0.54 2016-17 48% $ 42.13 $0.45 2017-18 39% $ 41.78 $0.27 2018-19 30% $ 40.79 $0.00 2019-20 5% $ 38.33 ($0.20)

II. Budget Report Budget Actual Variance Jul-15 Jul-15 Gross Load 78,500 76,867 2,347 Power Supply Hedged Energy $2,576,800 $2,670,864 ($94,064) PJM - Energy, Congestion & Losses $1,224,900 156,552 $1,068,348 PJM - ARR, Transmission and Fees $650,000 505,236 $144,764 Dover SUN Park Energy $238,800 $241,720 ($2,920) Dover SUN Park RECs $48,300 $40,142 $8,158 RECS (Solar and Non-Solar) $56,100 $0 $56,100 RGGI Credit Costs $0 $0 $0 Management Fees $83,000 $83,000 $0 PJM - Capacity UCAP Obligated Purchased $882,400 $890,225 ($7,825) Subtotal - Power Supply $5,760,300 $4,587,739 $1,172,561 Power Generation O&M Plant O&M $ 862,725 $ 561,203 $ 301,522 Subtotal Generation O&M $ 862,725 561,203.00 $160,065 Power Generation Production Margin PJM - Economic and reliability dispatch ($284,700) (281,682) $ (3,018) Fuel Costs - Natural Gas $194,600 146,712 $ 47,888 Fuel Costs - Oil $0 28,068 $ (28,068) Testing Costs $0 - $ - Subtotal Generation Production Margin ($90,100) ($106,902) $ 16,802 Power Generation Non-Production Revenue PJM - Generation Capacity Credit ($908,500) (902,146) ($6,354) Emissions Allowance Sales $0 $ - $0 Reactive Supply - Gas ($30,000) $ (85,793) $55,793 Subtotal - Non-Production Revenue ($938,500) ($987,939) $49,439 SubTotal - All Generation ($165,875) ($533,638) $367,763 Total - Utilities Cost $5,594,425 $4,054,101 $1,540,324 Unit Costs Total - Power Supply $73.38 $59.68 $13.70 Total - Power Generation ($2.11) ($6.94) $4.83 Final Cost of Service to City of Dover Ratepayers $71.27 $52.74 $18.53

Variance Analysis: Power Supply  Dover consumed 1,633 MWh more than forecasted for the month.  Dover experienced a favorable variance for budgeted PJM - Energy, Congestion & Losses of $1,068,348.  This resulted in a net power supply cost of $59.68/MWh, $13.70/MWh below budget.  The city realized a favorable variance of $1,172,561 for power supply vs. the monthly budget.  Dover Sun Park generated 49 MWhs more than forecasted. Generation  Power generation had a favorable budget variance of $ 49,238 driven primarily by higher Reactive Supply Non-Production Revenue and lower Plant O&M expenses which had a favorable budget variance of $301,522 for the month.

Budget Actual Variance YTD YTD Gross Load 741,200 76,867 664,333 Power Supply Hedged Energy $23,402,400 $2,670,864 $20,731,536 PJM - Energy, Congestion & Losses $7,966,100 156,552 $7,809,548 PJM - ARR, Transmission and Fees $7,932,500 505,236 $7,427,264 Dover SUN Park Energy $2,313,600 $241,720 $2,071,880 Dover SUN Park RECs $363,300 $40,142 $323,158 RECS (Solar and Non-Solar) $673,200 $0 $673,200 RGGI Credit Costs $175,000 $0 $175,000 Management Fees $996,000 $83,000 $913,000 PJM - Capacity UCAP Obligated Purchased $10,224,900 $890,225 $9,334,675 Subtotal - Power Supply $54,047,000 $4,587,739 $49,459,261 Power Generation O&M Plant O&M $6,478,225 $ 561,203 $5,917,022 Subtotal Generation O&M $6,478,225 $561,203 $5,917,022 Power Generation Production Margin PJM - Economic and reliability dispatch ($1,708,200) ($281,682) ($1,426,518) Fuel Costs - Natural Gas $1,167,600 $146,712 $1,020,888 Fuel Costs - Oil $0 $28,068 ($28,068) Testing Costs $0 $0 $0 Subtotal Generation Production Margin ($540,600) ($106,902) $ (433,698) Power Generation Non-Production Revenue PJM - Generation Capacity Credit ($10,472,400) ($902,146) ($9,570,254) Emissions Allowance Sales $0 $0 $0 Reactive Supply - Gas ($360,000) ($85,793) ($274,207) Subtotal - Non-Production Revenue ($10,832,400) ($987,939) ($9,844,461) SubTotal - All Generation ($4,894,775) ($533,638) ($4,361,137) Total - Utilities Cost $49,152,225 $4,054,101 $45,098,124 Unit Costs Total - Power Supply $72.92 $59.68 $13.23 Total - Power Generation ($6.60) ($6.94) $0.34 Final Cost of Service to City of Dover Ratepayers $66.31 $52.74 $13.57

III. Operations Management Executive Summary: During the month of July, there were no reportable accidents or lost time accidents. The facility has now gone 106 days without an OSHA recordable accident and 200 consecutive days without a lost time accident. There were no Environmental Notices of Violations or exceedances issued and one Near Miss Report was completed. Unit 3 operated 93.2 hours during the month for PJM dispatch, self-dispatch for training and to complete the summer capacity test. Unit 1 was on line for 7.23 hours and completed the summer capacity test, Unit 2 was online for 10.16 hours during the month and completed the summer capacity test, and Unit 11 was self- dispatched twice for 8.58 hours. Monthly Budget Variance – The actual expenses attributable to O&M of the two sites for the month of July are $561,203 against a budgeted amount of $862,725 for a favorable variance of $301,522 or 34.95%. The variance was due to: Personnel Expenses variance was favorable $120,310 - labor was less due to not having a full staff of operators, Materials and Supplies variance was favorable $34,428 – due to timing of invoices for water bill and monthly chemical tanks as budgeted, and Administrative Expenses was favorable $146,784 due to electric bill and ABB maintenance contract to date. The forecasted expenses for this fiscal year are $6,359,828 expensed versus an approved budget of $6,382,900 thereby realizing a 98.69% expenditure rate.

NAES Corporation Dover, Delaware July 2015 Monthly Report NAES Scholarship Award Winners Clockwise (top left) Plant Manager, Don Mordus, Gabrielle Lavender and her father Ray Lavender (Operations Supervisor), (top right) Plant Manager, Don Mordus, Derek deBloois and his father John deBloois (IC&E Technician)

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

1.0 Environmental, Health and Safety: During the month of July, there were no recordable accidents, lost time accidents or environmental incidents. The facility has gone 106 days through July 31, 2015 without an OSHA Recordable Accident or a Lost Time since the April 16, 2015 reportable accident. There was one Near Miss reported in July at McKee Run. It was noticed that a heavy (35 lbs.) obsolete GAI-Tronic telephone box was dangling over the side of the Unit 1&2 cooling tower 35 feet above ground. The wires could have torn free from the box and injured personnel or damaged property on the ground. McKee Run still has to schedule one more CPR/First Aid and AED class that will occur after the run season. During the month of July, there were fourteen IWW discharges to the Kent County Public Works sewer system for a total of 470,450-gallons. A representative sample of the industrial discharge was taken on July 18, 2015. The July SIU Report was submitted to Kent County Public Works indicating no exceedances in July. During the month of July, there were no sampling events at Outfall 001, 004, 005 and 006 nor were there any discharges from Outfall 006. The July DMR was submitted to DNREC indicating no discharge for this month. No NPDES exceedances have been identified. All non-contact cooling tower blowdown water is being discharged directly to the Kent County Department of Public Works under the facilities Industrial Wastewater Discharge Permit #18. McKee and VanSant submitted the Semi-Annual Title V air permit certification to DNREC as part of the conditions set forth by the air permit. This report is to confirm that all the conditions are represented and that all deviations from the air permit are documented. There has been no response back from DNREC on the status of this certification too date. Additionally, McKee Run and VanSant went through a DNREC Full Compliance Audit of the Title V air permit in late July. DNREC performs an audit on all supporting documents that relate to the operation and performance of the Title V air permit. DNREC also performed a visual tour of the facilities and collected an oil sample which will be analyzed for sulfur content. These results will be matched against the McKee Run sample results to verify that oil burned in any of the boilers are below the sulfur limitations specified in the air permit. There has been no communication back to McKee Run on the status of the Full Compliance Audit. NOx Summary – Ozone Season (May-Sep) Tons Year Unit #1 Unit #2 Unit #3 Unit #11 TOTAL 2013 1.1 1.7 19.3 1.3 23.4 2014 0.4 0.6 35.0 0.8 36.8 2015 0.1 0.2 3.7 2.4 6.4 NOx Summary - Year (Jan-Dec) Tons Year Unit #1 Unit #2 Unit #3 Unit #11 TOTAL 2013 1.1 1.7 19.4 1.3 23.5 2014 0.8 1.1 39.8 3.7 45.4 2015 0.1 0.2 5.9 3.6 9.8 SO2 Summary - Year (Jan-Dec) Tons Year Unit #1 Unit #2 Unit #3 Unit #11 TOTAL 2012 0.0 0.0 0.0 0.1 0.1 2014 0.0 0.0 0.4 0.6 1.0 2015 0.0 0.0 9.6 0.8 11.0

2.0 Financial 2.1 Variance analysis: The actual expenses for the month of July are $561,203 against a budgeted amount of $862,725 for a favorable variance of $301,522 or 34.95%. The variance was due to the following: PERSONNEL EXPENSES – A favorable monthly variance of $120,310 was due to having a partial payroll accrued to June 2015. In addition, we didn’t have a full complement of employees for this time period. As a result, this impacted three (3) labor accounts – Straight Time, Overtime, and Labor Burdens. MATERIALS AND SUPPLIES EXPENSES- A favorable monthly variance of $34,428 was due to the timing of receipt of monthly water bills and no need to replenish the bulk chemical tanks as we had budgeted for in July. These costs will likely be seen in August or September for sulfuric acid and caustic soda. ADMINISTRATIVE EXPENSES – A favorable monthly variance of $146,784 was due to timing of receipt of monthly electricity bills and not being billed for ABB maintenance contract to date. Note that a portion of this was offset by the expense of pollution liability insurance that is typically billed in the October or November timeframe. The forecasted expenses for this fiscal year are $6,359,828 expensed versus an approved budget of $6,382,900 thereby realizing a 98.69% expenditure rate. 3.0 Operations Unit Operations / Outages / Trips: PJM dispatched Unit 3 three times and was self-dispatched nine times; for a total 93.200 hours online. Unit 1 was started up on July 20th for the performance of a capacity test. The startup of the unit was also further hindered during the initial warm up and firing when the boiler purge timer failed to function as designed which resulted in startup delays. Maintenance was contacted and they were able to install a parallel timer device to get the boiler purge timer to function to allow the unit to be started. Maintenance is

evaluating replacement of the original timer component for the boiler unit, with a more dependable modern purge time device for future starts on the unit. Unit 2 was self-dispatched on July 21st for capacity testing and training the unit tripped twice. The first trip was due to high lube oil temperature when the regulator stuck closed, the by-pass valve was opened and the operator manually opened the regulator with the controller. The second trip was due to the electro-matic safety lifting and not re-seating while vendors were trying to test the safety. Unit 1 was self-dispatched on July 22nd for capacity testing and training; Unit 1 was online for 7.230 hours and completed a successful capacity test. On July 27th Unit 2 was self-dispatched again for capacity testing and training this time a successful capacity test was performed with a total 10.166 online hours for the month. Unit 11 had two self-dispatched starts; both were for wet compression optimization testing. Unit 11 ran for a total of 8.583 hours of run time for the month of July. Month – July 2015 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 7.233 10.166 93.200 119.599 8.583 128.182 Starts # 1 3 9 13 2 15 Gross Generation MWh 81.874 96.694 4,061.075 4,239.643 334.800 4,574.443 Net Generation MWh 79.759 92.259 3,649.951 3,821.969 334.584 4,156.553 Total Auxiliaries MWh 42.940 45.260 681.759 769.959 1.026 770.785 Auxiliaries purchased MWh 40.825 40.825 270.635 352.285 0.810 353.095 Fuel Gas Used# MMBTU 958.548 2,059.926 46,552.544 49,571.018 4,345.206 53,916.224 Fuel Oil Used MMBTU 0.0 0.0 1,363.226 1,363.226 0.0 1,363.226 Fuel Oil Used Gallons 0.0 0.0 9,904 9,904 0.0 9,904 Total Fuel MMBTU 958.548 2,059.926 47,915.770 50,093.244 4,345.206 55,279.450 Net Heat Rate BTU/KWh 12.018 22.328 13.143 15.829 12.987 14.408 Unit Trips # 0 2 0 0 0 2 Capacity Factor % 0.63 0.73 4.81 3.78 1.15 3.19 Availability Factor % 100.00 100.00 100.00 100.00 100.00 100.00 Commercial % 0.0 0.0 0.0 0.0 0.0 0.0 Unavailability (CU) Planned Outage Hours Hours 0.0 0.0 0.0 0.0 0.0 0.0 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 736.770 733.834 737.000 641.800 744.000 2,112.404 497.000 744.000 735.417 744.0001,971.000 1,971.000 2,847.821 744.000 744.000 737.000737.000 1,971.0007 Hours HW Boiler Gas Usage MMBTU 0.0 0.0 5 5 Does not include HWB. Fuel usage numbers are taken from fuel flow instruments.

6 6 As measured by tank level instruments. Tank levels may change due to oil temperature.

Team Report: In the month of July, Units 1 and 2 successfully completed capacity testing for the summer season. This completes capacity testing for the summer months for 2015. The Plant Operations staff participates in the OES-NA training that helps prepare them for the PJM Certified System Operator exam and provides some of the required continuing education hours (CEHs) necessary to maintain PJM Certified System Operator qualifications. Additionally, members of the McKee Run staff participated in the PJM system restoration simulation drills/training that was conducted during the month of February, which also contributes CEHS to maintaining their Certified System Operator Certification. 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 assist with maintenance of the plant. 4.0 Maintenance During the month of July, the Plant Maintenance staff continued addressing the backlog of work orders. Back logged Work Orders are work orders that have been open for greater than thirty days. There were ninety work orders issued with thirty-three work orders being completed during the month. There were four Safety Work Orders entered into the plant’s Computerized Maintenance Management System (MP2) during the month of which 3 were completed. The table below summarizes the monthly work order activities based on MP2 records and will continue to improve with time. This table gives a representation of identified outstanding work; Preventative Maintenance tasks and back logged work order numbers. City of Dover – McKee Run Work Order Backlog Starting Completed Total Total WO Received Total Comp End Site WO Received Completed Open Type WOs WOs WOs Backlog Backlog WOs WOs WO's ADM 20 3 23 4 0 4 16 19 CIP 2 0 2 2 0 2 0 0 CM 48 34 82 7 18 25 41 57 EM 1 0 1 0 0 0 1 1 McKee Run EW 7 0 7 0 0 0 7 7 PM 35 42 77 9 22 31 26 46 PR 10 0 10 0 0 0 10 10 RO 12 7 19 2 2 4 10 15 SP 0 2 2 0 0 0 0 2 SW 1 4 5 1 3 4 0 1 Site Totals 136 92 228 25 45 70 111 158

City of Dover - VanSant Work Order Backlog Starting Completed Total Total WO Received Total Comp End Site WO Received Completed Open Type WOs WOs WOs Backlog Backlog WOs WOs WO's ADM 3 0 3 0 0 0 3 3 CIP 0 0 0 0 0 0 0 0 VanSant CM 9 1 10 1 1 2 8 8 PM 4 3 7 1 3 3 4 4 SP 0 0 0 0 0 0 0 0 SW 0 0 0 0 0 0 0 0 Site Totals 16 4 20 1 4 5 14 14 Notable activities during the month include: During start up process operation had noticed that drawing vacuum on the condenser took longer than normal. The NAES Maintenance and IC&E Staff started troubleshooting this issue on the following startup. The system was completely checked out. It was determine that the seals were no getting water to them. The water seal pump was taken apart to investigate the pump for problems. Once the pump was taken apart debris was found to be in the impeller. The debris was found to be a bird. A screen was installed on the inlet of the vacuum pump to prevent any foreign debris from getting into this pump again. The time did improve on the time it took to pull vacuum on the condenser, which improves the startup time of the unit. The NAES IC&E Staff assisted Compliance Environmental in completing an infrared study on all of the electrical equipment at McKee Run and VanSant Generating Station. There were no major infractions found during the study. There were a few minor infractions that were taken care right away and rechecked to ensure the issues was repaired. The majority of the minor infractions were terminals that needed cleaning and tighten. The NAES IC&E Staff assisted McHale Performance in testing the performance of the MEE FOG wet compression system. The staff installed several locations of the thermocouples and pressure transmitter to read temperatures and fuel pressure and flows. The staff recorded MW readings, auxiliary MW readings and printed out data reports from the PLC program. This information was gathered and a report will be given to the staff to determine the performance of the CT with and without the wet compression system. The Air Heater Controllers had to be replaced as they were acting up and were not able to be utilized as reliable indication due to erratic operation. These were replaced for future operations and to support a winter capacity test should PJM require McKee Run to perform a capacity test on these units them this winter. The boiler camera on Unit 1 had failed. A new camera was obtained and installed by maintenance for the Unit 2 the next morning while operations was operating Unit 1.

5.0 Capital Improvement Projects (CIP) This month’s report includes all of the CIP’s that still reflect as open in HTE and the planned budgeted CIP’s for the current budget year 2015/2016. Project Description Update Number Progress: Project is complete. EG1212 Unit 3 Turbine Repairs Schedule: Project is complete except for final invoicing. Progress: Work is complete. EG1312 Unit #3 Generator Repairs Schedule: Work is complete. Unit #3 Cooling Tower Progress: Work is complete and final report has been received. EG1402 Repairs Schedule: Project is complete. McKee Run Unit #3 Auxiliary Progress: Work is complete. EG1404 Equipment Replacement Schedule: Work is complete. Van Sant Unit #11 Progress: Work is complete. EG1405 Component Replacement Schedule: Work is complete. Progress: Work is complete and final report has been received. EG1406 McKee Run HEP Pipe Repairs Schedule: Project is complete. Progress: Project on Hold. Schedule: Project is on Hold until next year when RFP process will EG1407 Metering System Upgrades begin again. Project would be slated to be completed once Units 1 and 2 are taken out of service. McKee Run / Van Sant Progress: EG1408 Schedule: Safety & Compliance McKee Run Natural Gas Progress: Work is complete. EG1409 System Block Valve Schedule: Work is complete. Replacement McKee Run / Van Sant Progress: EG1413 Structural Preservation Schedule: McKee Run Units #1-#2 Progress: Work is complete. EG1415 Component Replacement Schedule: Work is complete. Progress: Commissioning of system was completed and Emission testing conducted in June. Schedule: Test report received from Catalyst Air Management. EG1416 VanSant Capacity Increase Submitted to ESS for review and will then be submitted to DNREC. Meeting to be held with DNREC to discuss results and to determine air permit requirements. Submitted an extension to DNREC and was approved. Progress: Work is complete. Unit #3 Auxiliary System Schedule: Work is complete. EG1503 Component Replacement Progress: Tube samples have yet to be sent out for analysis EG1504 Unit#3 Boiler System Repairs Schedule: . Van Sant Station Component Progress: Project on Hold.. EG1505 Replacement Schedule: Funding was moved to support other CIPs.

Progress: Updated Drawings received and final work to be completed McKee Run / Van Sant EG1506 in July. Safety Improvements Schedule: Project was requested to be carried over into new FY. Progress: Project on Hold due to funding removed to support other McKee Run Units #1-#2 CIPs. EG1507 Component Replacement Schedule: Project on Hold due to funding removed to support other CIPs. Progress: Project on Hold, however some funds were used to support McKee Run/VanSant transformer repair cost to preserve station integrity and reliability. EG1508 Structural Preservation Schedule: Project on Hold, however some funds were used to support transformer repair cost to preserve station integrity and reliability. McKee Run Building Progress: EG1601 Equipment Replacement Schedule: McKee Run Unit #3 Boiler Progress: EG1604 Systems Schedule: McKee Run Unit #3 Auxiliary Progress: EG1607 Equipment Replacement Schedule: McKee Run / Van Sant CEMS Progress: EG1608 Upgrades Schedule: Van Sant Station Component Progress: EG1609 Replacement Schedule: McKee Run / Van Sant Progress: EG1610 Safety Improvements Schedule: McKee Run / Van Sant Progress: EG1611 Structural Preservation Schedule: McKee Run Unit #3 Cooling Progress: EG1612 Water Line Repairs Schedule: McKee Run Unit #3 Boiler Progress: EG1613 Stack Repairs Schedule:

6.0 General Plant Information Plant employees welcomed Kyle Polumbo as an Operator I on July 20, 2015. Kyle recently graduated from Williamson with an Associate’s Degree in Power Plant Technology. Most recently Kyle had an internship with Paulsboro Oil Refinery in Paulsboro, NJ. The Plant was introduced to Kyle at a welcome breakfast hosted in the Control Room on July 23, 2015. Currently the Plant is looking to fill (1) Operator position, and is actively conducting interviews with qualified applicants. Training: Plant employees continue General Physics safety training and environmental courses to enhance their overall knowledge of permit and safety requirements. As the GPI courses are being completed the employee reviews the standard operating procedure (SMP) for the same topic they are training on to review NAES policy and score a minimum 80% on a quiz before they can complete the SMP. Topics discussed during the monthly safety committee meeting were reviewed by the entire staff. The monthly safety topic was on “Carbon Monoxide Poisoning Kill Two” and therefore everyone is empowered to stop a job if they consider the work practice at hand to be unsafe or dangerous to the health and well-being of the employee(s) performing a given task. They are all aware that safety and safe performance of work and tasks is a team effort and making sure each of us is watching out for the safety of others is a core value for NAES Safe practices. 6.0 Summary of NAES Performance to Date

IV. Appendix 1 – PJM Invoice REPORT NAME: Monthly Billing Statement - CSV and XML CUSTOMER ACCOUNT: City of Dover, Delaware CUSTOMER CODE: DOVDE CUSTOMER ID: 76.000000 FINAL BILLING STATEMENT ISSUED: 8/7/2015 9:19 BILLING PERIOD START DATE: 7/1/2015 BILLING PERIOD END DATE: 7/31/2015 INVOICE NUMBER: 2015073100076 INVOICE DUE DATE: 8/14/2015 12:00 SOURCE BILLING PERIOD CHARGES ADJ BILLING LINE ITEM NAME START AMOUNT ($) 1100.000000 Network Integration Transmission Service 449639.81 1108.000000 Transmission Enhancement 70050.53 1130.000000 Firm Point-to-Point Transmission Service 0.00 1140.000000 Non-Firm Point-to-Point Transmission Service 0.00 1200.000000 Day-ahead Spot Market Energy 623263.00 1205.000000 Balancing Spot Market Energy -241840.68 1210.000000 Day-ahead Transmission Congestion -576947.53 1215.000000 Balancing Transmission Congestion 65187.95 1220.000000 Day-ahead Transmission Losses 20342.27 1225.000000 Balancing Transmission Losses -2485.74 1230.000000 Inadvertent Interchange 81.12 1242.000000 Day-Ahead Load Response Charge Allocation 35.22 1243.000000 Real-Time Load Response Charge Allocation 164.97 1250.000000 Meter Error Correction -4670.63 PJM Scheduling, System Control and Dispatch 1301.000000 Service - Control Area Administration 12966.83 PJM Scheduling, System Control and Dispatch 1302.000000 Service - FTR Administration 0.00 PJM Scheduling, System Control and Dispatch 1303.000000 Service - Market Support 3100.83 PJM Scheduling, System Control and Dispatch 1304.000000 Service - Regulation Market Administration 92.32 PJM Scheduling, System Control and Dispatch 1305.000000 Service - Capacity Resource/Obligation Mgmt. 936.82 PJM Scheduling, System Control and Dispatch 1306.000000 Service - Advanced Second Control Center 1425.89

PJM Scheduling, System Control and Dispatch 1307.000000 Service - Market Support Offset -387.69 1313.000000 PJM Settlement, Inc. 387.69 1314.000000 Market Monitoring Unit (MMU) Funding 321.08 1315.000000 FERC Annual Recovery 5134.62 1316.000000 Organization of PJM States, Inc. (OPSI) Funding 52.88 North American Electric Reliability Corporation 1317.000000 (NERC) 904.31 1318.000000 Reliability First Corporation (RFC) 1471.43 Transmission Owner Scheduling, System Control 1320.000000 and Dispatch Service 5694.06 Reactive Supply and Voltage Control from 1330.000000 Generation and Other Sources Service 35996.70 1340.000000 Regulation and Frequency Response Service 11911.29 1360.000000 Synchronized Reserve 7382.17 1362.000000 Non-Synchronized Reserve 1235.37 1365.000000 Day-ahead Scheduling Reserve 11774.97 1370.000000 Day-ahead Operating Reserve 5250.38 1375.000000 Balancing Operating Reserve 8746.32 1376.000000 Balancing Operating Reserve for Load Response 5.72 1378.000000 Reactive Services 3691.45 1380.000000 Black Start Service 1577.84 1400.000000 Load Reconciliation for Spot Market Energy -552.66 1410.000000 Load Reconciliation for Transmission Congestion 1052.16 1420.000000 Load Reconciliation for Transmission Losses 25.79 1430.000000 Load Reconciliation for Inadvertent Interchange -8.67 Load Reconciliation for PJM Scheduling, System 1440.000000 Control and Dispatch Service -63.61 Load Reconciliation for Schedule 9-6 - Advanced 1442.000000 Second Control Center -7.47 Load Reconciliation for Market Monitoring Unit 1444.000000 (MMU) Funding -1.23 1445.000000 Load Reconciliation for FERC Annual Recovery -20.64 Load Reconciliation for Organization of PJM 1446.000000 States, Inc. (OPSI) Funding -0.21 Load Reconciliation for North American Electric 1447.000000 Reliability Corporation (NERC) -3.63 Load Reconciliation for Reliability First 1448.000000 Corporation (RFC) -5.91 Load Reconciliation for Transmission Owner 1450.000000 Scheduling, System Control and Dispatch Service -22.89 Load Reconciliation for Regulation and 1460.000000 Frequency Response Service -228.23 1470.000000 Load Reconciliation for Synchronized Reserve -20.27 Load Reconciliation for Non-Synchronized 1472.000000 Reserve -2.27 1475.000000 Load Reconciliation for Day-ahead Scheduling -20.57

Reserve Load Reconciliation for Balancing Operating 1478.000000 Reserve -13.71 1490.000000 Load Reconciliation for Reactive Services 424.96 1600.000000 RPM Auction 6324.93 1610.000000 Locational Reliability 904154.06 1932.000000 Generation Deactivation Refund -564.58 1230.000000 A Inadvertent Interchange 6/1/2015 0.77 1250.000000 A Meter Error Correction 6/1/2015 -3498.66 1340.000000 A Regulation and Frequency Response Service 6/1/2015 -6.39 1360.000000 A Synchronized Reserve 1/1/2015 -698.43 1360.000000 A Synchronized Reserve 2/1/2015 -1292.29 1360.000000 A Synchronized Reserve 3/1/2015 -1498.01 1365.000000 A Day-ahead Scheduling Reserve 5/1/2015 -145.05 1375.000000 A Balancing Operating Reserve 1/1/2014 62.20 1375.000000 A Balancing Operating Reserve 1/1/2015 -68.86 1375.000000 A Balancing Operating Reserve 2/1/2015 -254.39 1375.000000 A Balancing Operating Reserve 3/1/2015 -44.03 1375.000000 A Balancing Operating Reserve 4/1/2015 -3.73 1375.000000 A Balancing Operating Reserve 5/1/2015 -9.13 1375.000000 A Balancing Operating Reserve 6/1/2015 0.73 1378.000000 A Reactive Services 1/1/2015 1636.69 Michigan - Ontario Interface Phase Angle 1911.000000 A Regulators 6/1/2015 195.52 Total Charges 1427315.86 SOURCE BILLING PERIOD CREDITS ADJ BILLING LINE ITEM NAME START AMOUNT ($) 2100.000000 Network Integration Transmission Service 0.00 2108.000000 Transmission Enhancement 55113.41 2130.000000 Firm Point-to-Point Transmission Service 0.00 2140.000000 Non-Firm Point-to-Point Transmission Service 384.77 2210.000000 Transmission Congestion 0.00 2220.000000 Transmission Losses 31441.97 Transmission Owner Scheduling, System Control 2320.000000 and Dispatch Service 0.00 Reactive Supply and Voltage Control from 2330.000000 Generation and Other Sources Service 29467.58 2340.000000 Regulation and Frequency Response Service 0.00 2360.000000 Synchronized Reserve 4480.22 2365.000000 Day-ahead Scheduling Reserve 20406.73 2370.000000 Day-ahead Operating Reserve 0.00 2375.000000 Balancing Operating Reserve 5092.99 2380.000000 Black Start Service 0.00 2420.000000 Load Reconciliation for Transmission Losses -27.79

2510.000000 Auction Revenue Rights 76153.98 2600.000000 RPM Auction 908470.50 2630.000000 Capacity Transfer Rights 2150.78 2640.000000 Incremental Capacity Transfer Rights 353.09 2661.000000 Capacity Resource Deficiency 11425.22 2140.000000 A Non-Firm Point-to-Point Transmission Service 6/1/2015 13.75 2220.000000 A Transmission Losses 6/1/2015 -3.18 Total Credits 1144924.02 Previous Weekly Billing Net Total 197835.48 Total Due / Receivable 84556.36

FUND SUMMARY as of 09/04/2015 Total Collected $ 1,175,375.97 DEMEC Admin Fee Paid $ 70,731.48 State Admin Fee Paid $ 26,675.07 Customer Grants Paid $ 535,563.25 Customer Only Grants/Fees Reserved and Amount Owed $ 63.75 Community Project Funds Requested - Dov. Lib - Requested $ 1,970,000.00 Community Project Funds Paid - Dov. Lib $ 397,408.32 Energy Depot Fees Paid $ 58,593.90 Efficiency Program Dollars Paid $ 37,268.34 Solar Electric Power Association (SEPA) Fee Paid $ 6,476.41 Unencumbered Funds Available Grants $ 2,595.45 Funds Available for Dover Library $ 40,000.00 Current Grant Payment Delay (Months) 0.0 GRANTS PAID Grant Amount Review Fee Amount Date Grant Paid Applicant Type Paid Paid Owed 9/21/2007 Laura Drew Kelly Geo-Res $ 3,000.00 $ 225.00 $ - 12/5/2007 Domingo Reyes PV-Res $ 12,762.50 $ 750.00 $ - 4/16/2008 Lakeland Commercial Group Geo-NonRes $ 10,800.00 $ 750.00 $ - 6/19/2008 & 08/25/2008 L.D. Shank - Triad Farms PV-NonRes $ 30,000.00 $ 750.00 $ - 10/6/2008 City of Dover PV-NonRes $ 40,820.00 $ 750.00 $ - 10/21/2008 Robert & Cynthia Hartman Geo-Res $ 1,800.00 $ 135.00 $ - 10/21/2008 Robert Varipapa Geo-Res $ 2,400.00 $ 180.00 $ - 2/27/2009 David Jump PV-Res $ 15,000.00 $ 750.00 $ - 2/27/2009 Jakob Seren PV-Res $ 15,000.00 $ 750.00 $ - 2/27/2009 William Sweet PV-Res $ 15,000.00 $ 750.00 $ - 3/31/2009 LD Shank - Triad Farms SHW-NonRes $ 3,000.00 $ 225.00 $ - 3/31/2009 Warren & Joan Seaver Geo-Res $ 3,000.00 $ 225.00 $ - 4/22/2009 William Sweet SHW-Res $ 3,000.00 $ 225.00 $ - 4/28/2009 State of DE/DNREC - DE National PV-NonRes $ 30,000.00 $ 750.00 $ - 4/29/2009 Delaware Primary Care, LLC PV-NonRes $ 30,000.00 $ 750.00 $ - 9/11/2009 NCALL PV-NonRes $ 30,000.00 $ 750.00 $ - 9/11/2009 D.Brian Beckman Geo-Res $ 2,000.00 $ 150.00 $ - 9/21/2009 LSKC Dover, LLC - Kids Cottage PV-NonRes $ 29,925.00 $ 750.00 $ - 10/5/2009 Mark F. Boller Geo-Res $ 3,000.00 $ 225.00 $ - 10/5/2009 John Welgan PV-Res $ 15,000.00 $ 750.00 $ - 11/4/2009 LSKC LLC/ Kids Cottage Geo-NonRes $ 12,000.00 $ 750.00 $ - 3/25/2010 James G. McGiffin Jr. & Kathleen Geo-Res $ 3,000.00 $ 225.00 $ - 3/23/2010 Minaxi Patel PV-Res $ 15,000.00 $ 750.00 $ - 5/28/2010 Nancy Warner Geo-Res $ 1,200.00 $ 90.00 $ - 6/2/2010 David Teel Geo-Res $ 1,800.00 $ 135.00 $ - 6/2/2010 Dewey J. Barich Geo-Res $ 2,400.00 $ 180.00 $ - 7/12/2010 Mike & Sharon Laverty PV-Res $ 5,105.00 $ 382.88 $ - 8/19/2010 James Grilli Geo-Res $ 1,800.00 $ 135.00 $ - 8/19/2010 Michael Noble PV-Res $ 15,000.00 $ 750.00 $ - 9/17/2010 David Teel PV-Res $ 7,500.00 $ 562.50 $ - 3/8/2011 Michael & Carol Apgar PV-Res $ 7,500.00 $ 562.50 $ - 3/17/2011 Elizabeth Murphey School Geo-NonRes $ 9,200.00 $ 690.00 $ - 5/24/2011 Richard Avant Geo-Res $ 2,400.00 $ 180.00 $ - 6/23/2011 Charles Messina Plumbing & SHW-NonRes $ 10,000.00 $ 750.00 $ - 10/4/2011 Charles Bounds Geo-Res $ 1,800.00 $ 135.00 $ - 3/29/2011 Michael J Kopp Geo-Res $ 2,300.00 $ 135.00 $ 37.50 7/8/2011 Psychiatric Access of Central DE PV-NonRes $ 13,187.50 $ 750.00 $ - 3/7/2012 Ruth Ann Piper Geo-Res $ 1,200.00 $ 90.00 $ - 3/7/2012 Robert Hall Geo-Res $ 3,000.00 $ 225.00 $ - 3/7/2012 Elizabeth Murphey School (Bradford Geo-NonRes $ 13,800.00 $ 750.00 $ - 3/7/2012 Elizabeth Murphey School (Florence Geo-NonRes $ 12,000.00 $ 750.00 $ - 3/7/2012 Elizabeth Murphey School Geo-NonRes $ 5,400.00 $ 405.00 $ - 3/7/2012 Elizabeth Murphey School (Garage Geo-NonRes $ 1,800.00 $ 135.00 $ - 3/7/2012 Frank Daniels Geo-Res $ 4,400.00 $ 303.75 $ 26.25 3/7/2012 Elizabeth Murphey School (Sanford Geo-NonRes $ 10,200.00 $ 750.00 $ - 8/15/2012 Chong S. Tamburo-Lepage Geo-Res $ 2,300.00 $ 172.50 $ - 12/19/2012 Christopher W. Los Geo-Res $ 3,000.00 $ 225.00 $ - 1/30/2013 Matthew and Kimberly Chesser Geo-Res $ 3,000.00 $ 225.00 $ - 2/25/2013 Dennis Ho PV-Res $ 6,775.00 $ 508.13 $ - 6/28/2013 John DeMarie Geo-Res $ 3,000.00 $ 225.00 $ - 10/30/2013 James and Corinna Fritsch PV-Res $ 5,287.50 $ 396.56 $ - 10/30/2013 James and Deri Austin PV-Res $ 7,500.00 $ 562.50 $ - 2/28/2014 Calogero Guarraggi PV-Res $ 7,500.00 $ 562.50 $ - 2/28/2014 Elizabeth Murphey School Geo-NonRes $ 3,700.00 $ 277.50 $ - 2/21/2014 Mohammed Fuad Geo-Res $ 3,000.00 $ 225.00 $ - 4/8/2014 Holly Pfeifer PV-Res $ 5,750.00 $ 431.25 $ - 5/13/2014 Governors Avenue Animal Hospital PV-NonRes $ 13,550.75 $ 750.00 $ - 7/17/2014 Julia M. Pillsbury Geo-Res $ 3,000.00 $ 225.00 $ - 11/7/2014 Elizabeth Murphey School Geo - NonRes $ 3,700.00 $ 277.50 $ - 11/7/2014 Elizabeth Murphey School Geo - NonRes $ 3,700.00 $ 277.50 $ - 1/8/2015 Rex Bell Geo - Res $ 2,300.00 $ 172.50 $ - Total $ 535,563.25 $ 26,675.07 $ 63.75 ARRA RELIEF GRANTS PAID Paid by State Customer System Type Amount 6/10/2011 Arturo Sanchez Solar - PV - Res $ 7,500.00 10/19/2011 John Diamond Enterprise LLC Solar - PV - Com $ 30,000.00 10/19/2011 John Diamond Enterprise LLC Geo HP - Com $ 10,000.00 Total $ 47,500.00 RECEIVED APPLICATIONS Grant Reservation Status Applicant Type Request Review Fee Total $ - $ - ENERGY DEPOT FEES SEPA Fees Paid Fee Period Amount Date Measure 3/3/2008 Start-up Fees $ 5,872.50 3/19/2012 2012 Annual Membership $ 2,158.81 4/15/2008 Start-up Fees $ 1,957.50 1/31/2013 2013 Annual Membership $ 2,158.80 4/15/2008 Mar, Apr, May 2008 $ 1,692.13 1/27/2014 2014 Annual Membership $ 2,158.80 7/22/2008 June, July, Aug 2008 $ 1,692.13 10/10/2008 Sept, Oct, Nov 2008 $ 1,692.13 1/2/2009 Dec 08, Jan, Feb 2009 $ 1,692.13 4/3/2008 Mar, Apr, May 2009 $ 1,692.13 7/1/2009 June, July, Aug 2009 $ 1,692.13 9/11/2009 Sept, Oct, Nov 2009 $ 1,692.13 1/4/2010 Dec 09, Jan, Feb 2010 $ 1,692.13 3/29/2010 Mar, April, May 2010 $ 1,692.13 6/30/2010 June, July, Aug 2010 $ 1,692.13 Total $ 6,476.41 10/4/2010 Sept, Oct, Nov 2010 $ 1,692.13 1/3/2011 Dec 2010, Jan, Feb 2011 $ 1,692.13 4/5/2011 Mar, Apr, May 2011 $ 1,692.13 7/8/2011 June, July, Aug 2011 $ 1,692.13 10/4/2011 Sept, Oct, Nov, 2011 $ 1,692.13 1/3/2012 Dec 2011; Jan, Feb 2012 $ 1,692.13 4/5/2012 Mar, Apr, May 2012 $ 1,692.13 7/2/2012 June, July, Aug 2012 $ 1,692.13 10/2/2012 Sept, Oct, Nov 2012 $ 1,692.13 11/30/2012 Dec 12, Jan, Feb 2013 $ 1,692.13 2/25/2013 Mar, Apr, May 2013 $ 1,692.13 7/22/2013 June, July, Aug 2013 $ 1,692.13 8/26/2013 Sept, Oct, Nov, 2013 $ 1,692.13 12/3/2013 Dec 13. Jan, Feb 2014 $ 1,692.13 3/4/2014 Mar, Apr, May 2014 $ 1,692.13 6/4/2014 June, July, Aug 2014 $ 1,692.13 9/4/2014 Sept, Oct, Nov 2014 $ 1,692.13 12/1/2014 Dec 14, Jan, Feb 2015 $ 1,692.13 3/9/2015 Mar, Apr, May 2015 $ 1,692.13 6/1/2015 June, July, Aug 2015 $ 1,692.13 Total Paid $ 58,593.90 ENERGY EFFICIENCY CAMPAIGNS/EDUCATION PROGRAMS Paid Program Measure Amount 10/21/2008 1,500 CFL Campaign & Educational $ 5,012.29 Reimbursement for Green 12/11/2008 Energy/Information Pamphlets $ 3,459.12 Thermal Imager for Home Audits 3/31/2009 Program $ 5,581.12 Eco @ Home Energy Conserve. 1/4/2011 Calendars $ 20,015.81 Presbyterian Church of Dover - 1/14/2014 Energy Efficiency Grant $3,200.00 Total $ 37,268.34

10/30/2013 Dover Library Community Grant Payment Schedule Dover Library Community Funds Collection - $ 1,970,000.00 Allocation change from Dover Payment Due Date Requested Amount Funds Paid to Date Collections 10/17/2011 $ 48,267.00 $ 48,267.00 12/5/2012 $ 152,141.32 $ 152,141.32 $ 5,021.15 1/2 of Oct 2009 GEF Payment June 1, 2014 $ 98,500 $ 98,500.00 $ 4,783.94 1/2 of Nov 2009 GEF Payment June 1, 2015 $ 98,500 $ 98,500.00 $ 4,813.23 1/2 of Dec 2009 GEF Payment June 1, 2016 $ 98,500 $ 5,454.02 1/2 of Jan 2010 GEF Payment June 1, 2017 $ 98,500 $ 5,147.49 1/2 of Feb 2010 GEF Payment June 1, 2018 $ 98,500 $ 4,897.69 1/2 of March 2010 GEF Payment June 1, 2019 $ 98,500 $ 3,976.14 1/2 of April 2010 GEF Payment June 1, 2020 $ 98,500 $ 5,638.90 1/2 of May 2010 GEF Payment June 1, 2021 $ 98,500 $ 5,645.35 1/2 of June 2010 GEF Payment June 1, 2022 $ 98,500 $ 6,590.60 1/2 of July 2010 GEF Payment June 1, 2023 $ 98,500 $ 7,786.09 1/2 of August 2010 GEF Payment June 1, 2024 $ 98,500 $ 6,415.31 1/2 of Sept 2010 GEF Payment June 1, 2025 $ 98,500 $ 5,327.96 1/2 of Oct 2010 GEF Payment June 1, 2026 $ 98,500 $ 4,787.73 1/2 of Nov 2010 GEF Payment June 1, 2027 $ 98,500 $ 4,939.75 1/2 of Dec 2010 GEF Payment June 1, 2028 $ 98,500 $ 5,452.55 1/2 of Jan 2011 GEF Payment June 1, 2029 $ 98,500 $ 5,410.35 1/2 of Feb 2011 GEF Payment June 1, 2030 $ 98,500 $ 4,646.32 1/2 of March 2011 GEF Payment June 1, 2031 $ 98,500 $ 4,742.22 1/2 of April 2011 GEF Payment June 1, 2032 $ 98,500 $ 4,702.48 1/2 of May 2011 GEF Payment June 1, 2033 $ 98,500 $ 5,664.97 1/2 of June 2011 GEF Payment Total $ 1,970,000.00 $ 397,408.32 $ 6,430.15 1/2 of July 2011 GEF Payment $ 6,916.50 1/2 of Aug 2011 GEF Payment $ 6,149.31 1/2 of Sept 2011 GEF Payment $ 5,243.92 1/2 of Oct 2011 GEF Payment $ 4,829.91 1/2 of Nov 2011 GEF Payment $ 4,531.81 1/2 of Dec 2011 GEF Payment $ 4,990.50 1/2 of Jan 2012 GEF Payment $ 5,071.81 1/2 of Feb 2012 GEF Payment $ 4,828.32 1/2 of March 2012 GEF Payment $ 4,857.07 1/2 of April 2012 GEF Payment $ 4,230.04 1/2 of May 2012 GEF Payment $ 5,711.19 1/2 of June 2012 GEF Payment $ 6,085.89 1/2 of July 2012 GEF Payment $ 7,347.66 1/2 of Aug 2012 GEF Payment $ 6,453.66 1/2 of Sept 2012 GEF Payment $ 4,886.43 1/2 of Oct 2012 GEF Payment $ 4,132.99 1/2 of Nov 2012 GEF Payment $ 5,513.86 1/2 of Dec 2012 GEF Payment $ 5,187.25 1/2 of Jan 2013 GEF Payment $ 5,307.83 1/2 of Feb 2013 GEF Payment $ 4,783.25 1/2 of March 2013 GEF Payment $ 4,903.40 1/2 of April 2013 GEF Payment $ 4,673.21 1/2 of May 2013 GEF Payment $ 5,322.04 1/2 of June 2013 GEF Payment $ 6,352.74 1/2 of July 2013 GEF Payment $ 6,519.11 1/2 of Aug 2013 GEF Payment $ 5,995.23 1/2 of Sept 2013 GEF Payment $ 4,913.73 1/2 of Oct 2013 GEF Payment Allocation Request from Dover 10/30/2013 - DEMEC to direct more money to library $ 8,589.16 All of Nov 2013 GEF Payment $ 8,846.64 All of Dec 2013 GEF Payment $ 9,286.45 All of Jan 2014 GEF Payment $ 10,267.60 All of Feb 2014 GEF Payment $ 8,950.89 All of March 2014 GEF Payment $ 8,960.46 All of April 2014 GEF Payment $ 8,069.10 All of May 2014 GEF Payment $ 9,357.61 All of June 2014 GEF Payment $ 10,776.24 All of July 2014 GEF Payment $ 10,967.67 All of Aug 2014 GEF Payment $ 10,883.75 All of Sept 2014 GEF Payment $ 8,932.20 All of Oct 2014 GEF Payment $ 8,549.42 All of Nov 2014 GEF Payment $ 8,805.66 All of Dec 2014 GEF Payment $ 9,524.94 All of Jan 2015 GEF Payment $ 10,268.95 All of Feb 2015 GEF Payment $ 9,387.70 All of March 2015 GEF Payment $ 8,845.29 All of April 2015 GEF Payment $ 8,371.57 All of May 2015 GEF Payment $ 10,031.73 All of June 2015 GEF Payment All of July 2015 GEF Payment All of Aug 2015 GEF Payment All of Sept 2015 GEF Payment All of Oct 2015 GEF Payment All of Nov 2015 GEF Payment All of Dec 2015 GEF Payment $ 451,685.95 Total Collections

City of Dover Electric Revenue Fund FY15 - White Oak Solar Park Incremental Cost Original July YTD Budget Power Supply & Generation Dover Sun Park - Energy $ 241,720 $ 241,720 $ 2,313,861 Dover Sun Park - REC's - - 363,381 Total Power Supply Cost 241,720 241,720 2,677,242 Non-Solar Power Supply Cost (121,131) (121,131) (179,253) Incremental Energy Cost $ 120,589 $ 120,589 $ 2,497,989 Revenues Customer Sales - Electricity (8,419) (8,419) (93,900) Rent Receipts (15,177) (15,177) (93,700) Total Revenues (23,596) (23,596) (187,600) Incremental Sun Park Cost $ 96,993 $ 96,993 $ 2,310,389 MWh Purchased/Generated - Solar 2,084.336 2,084.336 18,159.000 MWh $ Solar Energy $ 115.97 $ 115.97 $ 127.42 Solar REC's MWh - - MWh $ Solar REC (one month lag)* - - MWh $ Non-Solar Energy $ 58.12 Note: Solar REC's are one month behind due to the time the invoice is received.