Attachment

UTILITY COMMITTEE AGENDA JUNE 22, 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. HOUSE BILL NO. 171 AMENDING TITLES 9 AND 22 OF THE DELAWARE CODE RELATING TO TAXES ON SPECIAL BETTERMENTS 2. OVERVIEW OF CITY UTILITIES 3. TEA/NAES REPORTS (MARCH AND APRIL) (STAFF RECOMMENDS ACCEPTANCE OF THE REPORTS) 4. DISCUSSION ITEM PROPOSED DURING THE FY 2015/16 BUDGET REVIEW A. COST-BENEFIT ANALYSIS OF POWER PLANT OPERATION 5. UPDATES (COMMITTEE ACTION NOT REQUIRED ON THE BELOW ITEMS) A. GREEN ENERGY FUNDING AND PROGRAMMING B. NATIONAL POLLUTION DISCHARGE ELIMINATION SYSTEM (NPDES) MUNICIPAL SEPARATE STORM SEWER SYSTEMS (MS4) PERMIT C. GARRISON OAK TECHNICAL PARK PROJECT UPDATES C-1. CITY INFRASTRUCTURE C-2. CALPINE ENERGY CENTER C-3. DOVER SUN PARK 6. ADJOURNMENT BY 5:55 P.M. /TM S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\COMMITTEE-AGENDAS\2015\06-22-2015 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.

SUMMARY OF HOUSE BILL 171 The Tax. For decades, Verizon and other traditional landline providers have paid a property tax on their poles, wires, cable and conduit for the distribution of landline telephone communication services (“Special Betterments Tax”). The tax is paid to the State’s counties, municipalities, and school districts (the “Localities”). 9 Del. C. § 8101(8) and 22 Del. C. § 2001. This tax is a disincentive to investment in broadband infrastructure since increased investment brings increased taxes. Although a competitive market for telephone services exists today, cable telephony and wireless providers do not pay a similar tax, arguably in violation of the State Constitution’s uniformity of taxation clause. The Problem. • Until 1993, Verizon Delaware was the only provider of local exchange telephone service – serving 100% of the State as a regulated, rate of return utility. • Over the past 20 years, the communications market has become fiercely competitive. Traditional landline telephone service has been replaced with new technologies such as cable telephony, wireless and high-speed broadband. • In Delaware, 60% of the landlines have been disconnected over the past 10 years and 46% of households have no traditional landline phone service or use cell phones for all or almost all of their calls. • Changing requirements for service and significant competition have resulted in Verizon upgrading its functionally outdated and increasingly obsolete copper-based networks to fiber- optic cable. • The duplicative copper network will continue to depreciate in Delaware while the majority of fiber investment has been completed. • Property taxes received by municipalities, school districts and counties on telecommunications facilities will decrease in the coming years as a result of the transition to new technologies throughout the State. The Solution. House Bill 171 establishes a Telecommunications Tax Modernization Review Group to study and make recommendations for establishing a future funding mechanism to replace the property tax on telecommunications equipment and addressing the projected decrease in revenue to the counties, municipalities and school districts as a result of the transition to new communications technologies in the coming years. In addition, it begins the process of eliminating the disparate tax treatment of providers of telephone service and the disincentive to continued investment in broadband networks Specifically, HB 171: • Establishes a Review Group made up of impacted parties to study and make recommendations for legislation on a funding mechanism to replace the tax on telecom poles, wires, cable and conduit that is revenue-neutral to the localities and competitively neutral to the providers of telecommunications services. • Caps the taxation of telecom poles, wires, cables and conduit at FY 2015 rates; • Eliminates the tax as of June 30, 2018.

SPONSOR: Rep. Bennett & Sens. Hall-Long & McDowell Reps. Hudson, Q. Johnson, Keeley, Longhurst, Schwartzkopf, M. Smith, Viola; Sens. Blevins, Lavelle, Poore, Simpson HOUSE OF REPRESENTATIVES 148th GENERAL ASSEMBLY HOUSE BILL NO. 171 AN ACT AMENDING TITLES 9 AND 22 OF THE DELAWARE CODE RELATING TO TAXES ON SPECIAL BETTERMENTS. BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE: 1 Section 1. Amend § 8101(e)(8), Title 9 of the Delaware Code, by making deletions as shown by strike through and 2 insertions as shown by underline as follows: 3 (e) Special betterments, whether or not also considered to be improvements, shall include and be limited to the 4 following: 5 (8) Poles, wires, cable and conduit for distribution of telephone communication services either above or 6 below ground; provided, however, that in no event shall the amount of tax imposed on such property exceed the 7 amount paid on such property to each political subdivision in the fiscal year ending June 30, 2015; 8 Section 2. Amend §2001, Title 22 of the Delaware Code, by making deletions as shown by strike through and 9 insertions as shown by underline as follows: 10 § 2001 Limitation of municipal taxing powers. 11 (a) Every municipal corporation in this State, regardless of population, shall only have the power to impose, levy, 12 assess, or collect a tax of any kind whatsoever as expressly authorized in its municipal charter or this title. 13 (b) Any provision in a municipal charter granting the municipal corporation "all powers," or any derivation thereof, 14 shall not be construed as exempting the municipal corporation from the limitation set forth in subsection (a) of this section. 15 (c) The amount of tax imposed by municipal corporations on poles, wires, conduit and cable for distribution of 16 telephone communication may not exceed the amount paid on such property to each municipal corporation in the fiscal year 17 ending June 30, 2015. As of June 30, 2018, no municipal corporation may impose a tax on poles, wires, conduit and cable 18 for distribution of telephone communications. 19 Section 3. Legislative Findings. The General Assembly finds as follows: 20 a. Competition and changes in technology have expanded types of communications services available to 21 businesses and consumers in Delaware. Page 1 of 4 HD : SLT : TEH Released: 06/09/2015 12:47 PM 1031480178

22 b. Most state and local taxes on communications services were adopted before changes in technology and the 23 emergence of competition. 24 c. Antiquated tax structures, such as taxation of telecommunications poles, wires and conduit, are no longer 25 suitable for the current and future communications marketplace. 26 d. Tax policy should encourage investment in communications networks because communications services are 27 vital to the state's economic growth and competitiveness. 28 e. The State, municipalities, school districts and counties all currently receive revenues from communications 29 taxes, and should participate in any discussions about restructuring those taxes. 30 f. Property taxes received by received by municipalities, school districts and counties on telecommunications 31 facilities will decrease in the coming years as a result of the transition to new technologies throughout the State. 32 g. More information about the revenue impact of tax restructuring on consumers and local governments receiving 33 revenues from current taxes is necessary so that the General Assembly may consider tax restructuring options that are 34 revenue-neutral to local governments and eliminate the disparate treatment of like communications providers during the 35 2017 legislative session. 36 h. A Review Group of qualified persons representing the interests most affected by tax restructuring should study 37 the issues and submit a recommendation and proposed legislation to the General Assembly. 38 Section 4. Legislative Directives. The General Assembly directs that a Telecommunications Tax Modernization 39 Review Group (the “Review Group”) be formed for the purpose of studying and making recommendations on funding 40 mechanisms to replace the current property tax on poles, wires, cable and conduit for distribution of telephone service. The 41 Review Group should consider options that: (1) are revenue-neutral to the localities, (2) are competitively neutral to 42 providers of like communications services, and (3) encourage investment in broadband networks. 43 Section 5. The General Assembly further directs the Review Group to report findings and recommendations to the 44 House of Representatives and Senate by March 1, 2017, or earlier if appropriate. 45 Section 6. The General Assembly further directs that the Chair of the Review Group shall be a member of the 46 House of Representatives appointed by the Speaker of the House and, in addition to its chair, the Review Group shall have 47 the following members: 48 1. One member of the Senate, appointed by the President Pro Tempore of the Senate; 49 2. The Secretary of Finance or his designee; 50 3. One representative from New Castle County government, appointed by the County Executive; 51 4. One representative from Kent County government, appointed by the President of Kent County Levy Court Page 2 of 4 HD : SLT : TEH Released: 06/09/2015 12:47 PM 1031480178

52 5. One representative of Sussex County, appointed by the President of Sussex County Council; 53 4. Two representatives from local governments, appointed by the Chair; 54 5. One representative from the school districts, appointed by the Chair; and 55 6. One representative from a provider of landline telephone service that pays property tax on poles, wires, cable 56 and conduit, appointed by the Chair: 57 Section 7. The General Assembly further directs that the Chair of the Review Group be responsible for guiding the 58 administration of the Review Group by, at a minimum: 59 1. Setting dates, times and places for meetings; 60 2. Supervising the preparation and distribution of meeting notices, agendas, minutes, correspondence, and reports 61 of the Review Group; and 62 3. Ensuring that the final report of the Review Group is submitted to the Speaker of the House of Representatives 63 and President Pro Tempore of the Senate with a copy to the Governor, the Director of the Division of Research of 64 Legislative Council and the Delaware Public Archives. 65 Section 8. The General Assembly further directs that staff support for the Review Group be provided by the 66 Controller General's Office and the Office of the Secretary of Finance, under the direction of the Chair of the Review 67 Group. 68 Section 9. The General Assembly further directs that in order to evaluate the revenue impacts of such proposal, if 69 necessary, the Department of Finance is directed to collect information from municipalities, counties, and any other 70 relevant agencies including itself, to determine the amount of revenue collected and remitted to the respective governments 71 from all current taxes on communications services for the fiscal year beginning July 1, 2014 and ending June 30, 2014. The 72 Department of Finance also may collect information from communications service providers about the amount of revenue 73 paid or collected and remitted to governments from all communications taxes for the fiscal year beginning July 1, 2014 and 74 ending June 30, 2014. Subject to the restrictions provided by § 368 of Title 30 of the Delaware Code, the Department of 75 Finance shall provide the information collected under this section to the Review Group immediately upon receipt, or prior 76 to September 15, 2015. 77 Section 10. The General Assembly further directs that the information collected from communications service 78 providers shall not be disclosed to the public unless it is aggregated so that market share and other sensitive market 79 information for individual companies cannot be determined. Information not so aggregated or other individual company 80 information is not subject to disclosure. Page 3 of 4 HD : SLT : TEH Released: 06/09/2015 12:47 PM 1031480178

81 Section 11. The General Assembly further directs that the governmental entities, agencies and communications 82 providers shall cooperate reasonably with the Department of Finance's information gathering under this resolution. The 83 Department shall have the authority to subpoena any entity, agency or communications provider that fails or refuses to 84 cooperate reasonably with the Department's information gathering. 85 Section 12. The restrictions imposed on the counties’ and municipalities’ taxation of poles, wires, cables and 86 conduit for distribution of telephone communication services in Sections 1, 2 and 3 above shall also apply to school 87 districts. 88 Section 13. Section 1 of this bill is effective June 30, 2018. 89 Section 14. Sections 2-15 of this bill are effective upon enactment. SYNOPSIS This bill establishes a Telecommunications Tax Modernization Review Group to study and make recommendations for establishing a future funding mechanism to replace the property tax on telecommunications equipment and addressing the projected decrease in revenue to the counties, municipalities and school districts from the transition to new technologies throughout the State. The resulting mechanism should be revenue-neutral to the localities and competitively neutral to providers of like services. To encourage investment in broadband infrastructure, this bill also caps the amount of tax on telecommunications equipment at FY15 rates and eliminates the tax as of June 30, 2018. Page 4 of 4 HD : SLT : TEH Released: 06/09/2015 12:47 PM 1031480178

Monthly Management Committee Update – March 2015 April 23, 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 $17,885 above budget driven by higher Hedged Energy. Dover’s budgeted cost for all power supply (capacity AND energy) was $74.05/MWh. The actual cost of all power supply (capacity AND energy) was $69.32/MWh. The positive $4.73 budget variance was primarily driven by lower PJM Energy, Congestion and Losses. The cost of energy alone was $46.76/MWh, versus a budgeted energy cost of $48.08 driven by a decrease in market prices. Dover’s hedge purchases totaled 44,385 MWh, which was 73% of the actual load. The budgeted hedge purchase totaled 34,056 MWh which was 60% of the budgeted load. Dover’s power purchases from hedge transactions totaled $2,045,647. Purchases from PJM (energy and fees) totaled $1,106,377.75. This number includes DA spot market energy charges of $81,860.14 and Day-ahead Transmission Congestion credit of $43,164.05. Dover’s total load was 60,888 MWh versus a forecasted load of 56,758 MWh. Dover’s planned energy purchase from the SunPark solar installation was 1,605 MWhs. Dover’s actual energy purchase from the SunPark installation was 1,327 MWh. 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

I. Supply Source Summary: II. Supply Variance: 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

b. Generation Summary: Dover generated 464.95 MWhs in the month. Net generation revenue was $263,813 vs. a budget of $291,274. 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

Generation Breakdown: City of Dover Monthly Wholesale Generation Formula March 2015 Net Generation 464.95 D Production Margin PJM - Generation Economic and Reliability Dispatch $ 15,187.22 A Natural Gas & Oil Consumption Purchases for Generation $ (19,000.00) Natural Gas Transport $ (264.72) Eastern Shore Cashout $ (88.64) Oil Consumption $ (22,348.04) Subtotal: Natural Gas & Oil Consumption $ (41,701.40) B Gross Production Margin $ (26,514.18) C = (A + B) $/MWh Generation Production Gross Margin $ (57.03) E = (C/D) PJM - Capacity Generation Capacity Credit $ 725,758.98 Reactive Supply and Transmission Losses $ 58,278.84 Subtotal: PJM - Capacity $ 784,037.82 F All in Generation Margin All in Generation Margin Total $ 757,523.64 (G = C + F) 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

c. Emissions Summary: Emissions Allowance Summary through March 31st, 2015 2015 The reinstated Cross-State Air Pollution Rule (CSAPR) replaced the Clean Air Interstate Rule (CAIR) beginning January 1, 2015. The final CAIR true-ups for 2014 will occur in 2015, after which CAIR allowances will have no value. To avoid confusion, EPA CAMD should have removed all post-2014 CAIR allowances from the Allowance Tracking System on March 3, 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 SO2 national allowance trading program will remain in effect, however the CAIR provisions for SO2 are no longer applicable to Dover’s generating units. 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. 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 SO2 allowances. Mark Value for Clean Air Act Title IV Allowances Commodity $/Ton Tons Market ICE Settlement Value as of April 15th SO2 Allowances – Title IV $0.375 15,018 $ 5,632 TOTAL $ 5,632 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) and second compliance period (2012 – 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

2014). Any unused allowances are carried over (“banked”) for subsequent years. The table below and associated graph is in a new format for the monthly report. It includes Dover’s historical activities, and has been enhanced to include projections through 2020. Two projections presented: (1) future annual emissions equal the average for 2009 – 2014, and (2) future annual emissions equal to the highest emissions for 2009 – 2014. Dover, DE RGGI Allowance History and Forecast - March 31, 2015 CO2 Tons EOY Historical CO2 Tons CO2 Tons Projected 9OY Compliance CO2 Allowances Allocated CO2 Projected 9OY 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 6,000 N/A 2,221 98,696 18,021 33,000 82,896 67,917 2016 N/A 18,021 33,000 64,875 34,917 2017 N/A 18,021 33,000 46,854 1,917 2018 N/A 18,021 33,000 28,833 -31,083 2019 N/A 18,021 33,000 10,812 -64,083 2020 N/A 18,021 33,000 -7,209 -97,083 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

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 and Auction 27 held on March 11, 2015. It was awarded 1,000 allowances from its highest price bid, at the auction clearing price of $5.21/ton in Auction 26 and 6,000 allowances in Auction 27 at the auction clearing price of $5.41/ton. Auction 28 is scheduled for June 3, 2015. TEA and Dover have begun preparations to participate in this upcoming auction. Based on the April 15, 2015 ICE price for the May 2015 strip ($5.43/ton), the estimated market value of Dover’s existing 98,696 ton RGGI allowance bank is $535,919. 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

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 February, 2015, Dover had accumulated a total of 6,729 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 (www.flettexchange.com) were used for 2011/12 through 2014/15 vintage allowances. The February 19, 2015 daily settlement prices for Pennsylvania SRECS are used in the table below. SREC Vintage (June 1 – May Market Clearing Price SREC Balance Market Value 31) 2012/2013 $25.00 2,172 $54,300 2013/2014 $30.00 2,701 81,030 2014/2015 $35.00 1,856 64,960 TOTAL 6,729 $200,290 Market prices dropped $5.00/SREC between last month’s report and this report for the 2014/15 vintages, resulting in a small decline in the market value for banked allowances. 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. 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

d. Operations Management Summary: During the month of March, there were no reportable lost time accidents. The facility has now gone 77 days without an OSHA recordable accident and 77 consecutive days without a lost time reportable accident. There were no Environmental Notices of Violations or exceedances issued and there were no Near Miss reports. Unit 3 operated 8.4 hours on March 4 in order to complete a capacity test and to clear the derate ticket which was in place due to a fan failure. All units are currently in a planned outage cycle for this month and will be made available as the projected outage work for each unit is completed. Monthly Budget Variance – The actual expenses attributable to O&M of the two sites for the month of March are $493,711 against a budgeted amount of $480,131 for a unfavorable variance of $13,580 or 2.83%. The principal reasons for the unfavorable variance were due to an unexpected purchase of bulk water treatment chemicals, unplanned repairs to all three boilers and the Unit 3A ID Fan and higher than anticipated electricity costs due to unit operations. e. Risk Management Summary: Forward power prices in PJM have increased from last month. The current projected cost of service is below: PY Hedge Ratio Blended Cost ($/MWh) Monthly Change ($/MWh) 2014-15 79% $ 46.44 $ (0.14) 2015-16 65% $ 43.47 $ (0.27) 2016-17 47% $ 42.30 $ (0.14) 2017-18 37% $ 42.54 $ (0.19) 2018-19 22% $ 42.44 $ (0.22) 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

II. Budget Report Budget Actual Variance Mar-15 Mar-15 Gross Load 56,758 60,888 (4,130) Power Supply Hedged Energy $1,679,616 $2,045,647 ($366,031) PJM - Energy, Congestion & Losses $864,431 647,425 $217,006 PJM - ARR, Transmission and Fees $543,782 458,953 $84,829 Dover SUN Park Energy $184,761 $153,863 $30,898 Dover SUN Park RECs $23,900 $19,932 $3,968 Management Fees $83,000 $83,000 $0 PJM - Capacity UCAP Obligated Purchased $823,464 $ 812,018.83 $11,445 Subtotal - Power Supply $4,202,954 $4,220,839 ($17,885) Power Generation O&M Plant O&M 480,131.00 $493,711 (13,580.00) Subtotal Generation O&M 480,131.00 493,711.00 ($13,580) Power Generation Production Margin PJM - Economic and reliability dispatch $0 $ (15,187.22) $15,187 Fixed Fuel and Transport Charges $0 $ 41,701.40 ($41,701) Subtotal Generation Production Margin $0 $ 26,514.18 ($26,514) Power Generation Non-Production Revenue PJM - Generation Capacity Credit ($740,515) $ (725,758.98) ($14,756) Capacity Replacement Charge $11,160 $ - $11,160 PJM - Reactive Supply & Transmission Losses ($42,050) $ (58,278.84) $16,229 Subtotal - Non-Production Revenue ($771,405) ($784,038) $12,633 SubTotal - All Generation (291,274) ($263,813) ($27,461) Total - Utilities Cost $3,911,680 $3,957,027 ($45,347) 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

Variance Analysis: Power Supply • Dover consumed 4,130 MWh more than forecasted for the month. • The return of seasonal weather normalized system conditions driving a favorable variance for budgeted PJM - Energy, Congestion & Losses of $217,006. • This resulted in a net power supply cost of $69.32/MWh, $4.73/MWh below budget. • The city realized an unfavorable variance of $17,885 for power supply vs. the monthly budget. • Dover Sun Park generated 278 MWh less than forecast. Generation • Power generation had an unfavorable budget variance of $27,461. • Plant O&M expenses had a unfavorable budget variance of $13,580 for the month. 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

III. Operations Management NAES Corporation Dover, Delaware March 2015 Monthly Report Welcome to the New Additions to Our Plant Staff! Tyler Brown (left), Operator, and Don Mordus, Plant Manager 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

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 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

1.0 Environmental, Health and Safety: During the month of March, there were no lost time accidents. The facility has gone 77 days through March 30, 2015 without an OSHA Recordable Accident or a Lost Time reportable accident. There were no Near Misses reported in March at McKee Run. The plant received no Notice of Violations (NOVs) during the month. The March DMR will be submitted to DNREC for the McKee Run site once the analytical data is received from the laboratory. During the month of March, there were twelve IWW discharges to the Kent County Public Works sewer system for a total of 402,068 gallons. The monthly sampling occurred on March 25, 2015. The March SIU Report will be submitted to Kent County Public Works once the analytical data is received from the laboratory. Note: The test results were received in early April which indicated there were no issues except for a slight exceedance in the nickel loading. Kent County Public Works is aware of the slight exceedance and requested plant staff investigate the potential source and continue monitoring for nickel in the next month. On March 27, 2015, the City of Dover submitted to the Annual Greenhouse Gas Report to EPA. This report documents the CO2, methane and nitrous oxide emitted from electrical generation Units 1, 2, 3 and 11. As required by the DNREC NPDES permit, McKee Run was required to sample all storm water outfalls (001, 004, 005 and 006) as specified in the October 1, 2014 NPDES permit. The laboratory sample results indicated that all samples were below permissible levels. (The March DMR was submitted with the analytical results from this sampling event.) In order to comply with the new NPDES permit date October 1, 2014, the McKee Run facility was required by the DRBC to develop and submit a PCB Pollution Management Prevention Plan (PMP) for Outfalls 001 and 004. McKee Run had 180 days from October 1, 2014 to create and submit a PMP. This report was submitted to DRBC on March 30, 2015. In December 2014, McKee Run was required by the new October 1, 2014 NPDES permit to collect annual Delaware River Basin Commission (DRBC) PCB samples from Outfalls 001 and 004. The samples were analyzed by a lab and the final samples results were sent to DRBC and DNREC for review. The results indicated that PCBs are present in both Outfall 001 and the 004 samples. Additional investigation and monitoring is required to determine the source of these PCBs. DNREC visited McKee Run on March 11, 2015 to perform a visual inspection of Outfall 005 as a follow-up to the December 23, 2014 annual site inspection. No issues or violations occurred from this inspection. The DNREC representative merely spot checked the plant efforts to improve the conditions around the outfall since the December 2014 inspections. On March 31, 2015, McKee Run voluntarily implemented three improvement projects around Outfall 005. One was burying the existing silt fencing deeper in the ground in anticipation of the spring rain. The second improvement was to manually clean any minor sediment build-up on or around the silt sack material covering the drain grate, rinses the reusable silt sack with water and reinstalled it silt sacks over the drain grates. The third improvement was to place clean stone around the drain to hold back any sediment from entering the drain until the final grading and reseeding project for this area is completed. An improvement report, along with photographs, was submitted to DNREC to document the improvements. 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

Environmental, Health, and Safety Statistics Month Fiscal Year to Date (March) (7/1/14-6/30/15) NOVs 0 0 Opacity Deviations 4 5 Environmental Deviations 0 0 OSHA Recordable 0 1 OSHA LTA's 0 1 First Aid cases 0 0 Restricted Workday Accident 0 0 Near Miss 0 14 Man Hours Worked 4,267.5 92,434.75 Date last OSHA Recordable 1/12/15 Date last Lost Time Accident 1/12/15 Days since last OSHA recordable 77 Days since last Lost Time Accident 77 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 2015 0 1850 138 10 1,978 Total SO2 Allowance Balance 15,018 *Note – Emissions allowances are deducted according to oldest vintage first, unless otherwise directed. CO2 Allowance Summary CO2 Allowance CO2 Allowances CO2 Allowances Available Total CO2 Tons CO2 Allowance Vintage Bought/Sold (Per Facility, Prior to Sale)* Emitted Balance YTD McKee Run VanSant 2014 and earlier 1,000 194,244 7,799 108,126 94,917 2015 6,000 2,176 403 2,579 3,421 Total CO2 Allowance Balance 98,338 *Note: CO2 allowance values are provided by the RGGI CO2 Allowance Tracking System. **Note: 6,000 CO2 Tons Purchased in 2015 Auction 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

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 0.0 0.0 0.0 0.0 0.0 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 0.0 0.0 2.1 1.2 3.3 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 0.4 10.0 2.0 Financial Financial – Current Month Month – March Actual Budget Variance Personnel 299,579 369,500 69,921 Materials & Supplies 17,294 9,950 (7,344) Administrative Expenses 176,838 100,681 (76,157) Total $493,711 $480,131 ($13,580) Financial – Fiscal Year to Date Number of Months – 9 Actual Budget Variance Personnel 2,348,859 2,547,300 198,441 Materials & Supplies 229,764 190,400 (39,364) Administrative Expenses 1,581,738 1,469,879 (111,859) Total $4,160,361 $4,207,579 $47,218 2.1 Variance analysis: The actual expenses for the month of March are $493,711 against a budgeted amount of $480,131 for an unfavorable variance of $13,580 or 2.83%. The variance was due to the following: PERSONNEL EXPENSES – A favorable monthly variance of $69,921 was due to having three (3) payroll periods budgeted but only two (2) payroll periods expensed in addition to having a less than full complement of staff. The favorable variance was offset somewhat by higher than anticipated overtime costs to support forced outage repairs. As a result, this impacted three (3) labor accounts – Straight Time, Overtime, and Labor Burdens. MATERIALS AND SUPPLIES EXPENSES- An unfavorable monthly variance of $7,344 was due to an unanticipated purchase of bulk water treatment chemicals. ADMINISTRATIVE EXPENSES – An unfavorable monthly variance of $76,157 due to the required repairs to all three boilers and to the Unit #3A ID fan (bearing failure) and higher than anticipated electricity costs due to unit operations. The forecasted expenses for this fiscal year are $6,064,007 expensed versus an approved budget of $6,141,100 thereby realizing a 98.74% expenditure rate. 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

3.0 Operations Unit Operations / Outages / Trips: On March 2, Units 1, 2, and 11 started the spring planned outage at 700 hours. Unit 3 operated 8.4 hours on March 4 in order to complete a capacity test and to clear the derate ticket which was in place due to the fan failure. Upon completion of the capacity test, the unit was taken offline and the unit started its spring planned outage. Month – March 2015 McKee McKee McKee MRS Facility VanSant Total Unit 1 Unit 2 Unit 3 Unit 11 All Units Capacity MW 17 17 102 136 39 175 On Line Hours Hrs 0.0 0.0 8.400 8.400 0.0 8.400 Starts # 0 0 1 1 0 1 Gross Generation MWh 0.0 0.0 505.931 505.931 0.0 505.931 Net Generation MWh 0.0 0.0 467.549 467.549 0.0 467.549 Total Auxiliaries MWh 0.0 0.0 234.909 234.909 0.0 234.909 Auxiliaries purchased MWh 33.333 33.333 196.527 263.193 8.276 271.469 Fuel Gas Used# MMBTU 0.0 0.0 4,761 4,761 0.0 4,761 Fuel Oil Used MMBTU 0.0 0.0 968 968 0.0 968 Fuel Oil Used Gallons 0.0 0.0 7,077 7,077 0.0 7,077 Total Fuel MMBTU 0.0 0.0 5,730 5,730 0.0 5,730 Net Heat Rate BTU/KWh 0.0 0.0 12,257 12,257 0.0 12,257 Unit Trips # 0 0 0 0 0 0 Capacity Factor % 0.0 0.0 0.62 0.46 0.0 0.36 Availability Factor % 4.17 4.17 11.99 6.78 4.17 6.13 Commercial % 0.0 0.0 0.0 0.0 0.0 0.0 Unavailability (CU) Planned Outage Hours Hours 712.000 712.000 653.930 2077.930 712.000 2789.930 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 31.000 31.000 737.000 0.0 744.000 62.0 497.000 744.00031.00 744.000 1,971.000 1,971.000 93.00 744.000 744.00 737.0 Hours HW Boiler Gas Usage MMBTU 1,430 1,430 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. 2014-2015 Fiscal Year-to-Date ( 9 Months) McKee McKee McKee MRS Facility VanSant Total Unit 1 Unit 2 Unit 3 Unit 11 All Units Capacity MW 17 17 102 136 39 175 On Line Hours Hrs 30.966 35.134 491.432 557.532 27.700 585.232 Starts # 3 5 36 44 6 50 Gross Generation MWh 261.694 252.941 24,778.323 25,292.958 981.195 26,274.153 Net Generation MWh 247.853 233.930 22,552.917 23,034.700 970.476 24,005.176 Total Auxiliaries MWh 247.197 252.367 4,304.898 4,804.462 34.862 4,839.324 Auxiliaries purchased MWh 266.689 266.689 2,129.612 2,662.990 42.419 2,705.409 Fuel Gas Used MMBTU 3,780.381 3,255.417 243,226.480 250,262.278 7,544.726 257,807.004 Fuel Oil Used MMBTU 0.0 0.0 20,793.918 20,793.918 5,209.202 26,003.120 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

Fuel Oil Used Gallons 0.0 0.0 150,686 150,686 37,645 188,331 Total Fuel MMBTU 3,780.381 3,255.417 264,020.398 271,056.196 12,753.928 283,810.124 Net Heat Rate BTU/KWh 15.253 13.916 12.257 13.808 13.121 13.464 Unit Trips # 1 3 1 5 1 6 Capacity Factor % 0.22 0.21 3.36 2.54 0.38 2.06 Availability Factor % 63.36 62.17 59.41 61.65 66.17 62.78 Commercial % 2.81 4.01 4.00 3.60 0.0 2.70 Unavailability (CU) Planned Outage Hours Hours 2,224.00 2,224.00 2,405.930 6,853.930 2,224.00 9,077.930 Maintenance Outage Hours 0.0 0.0 0.0 0.0 0.0 0.0 Hours Forced Outage Hours Hours 184.920 263.500 255.157 703.577 0.0 703.577 Reserve Shutdown Hours 4,135.114 4,052.366 3,414.814 11,602.294 4,323.300 15,925.594 Hours HW Boiler Gas Usage MMBTU 6,455.055 6,455.055 Pilot Gas Usage MMBTU 527.631 623.391 1,151.022 1,151.022 Fuel Oil Inventory Note: As Monthly Monthly Fuel Monthly FY 14-15 Fuel FY 14-15 measured Inventory Inventory Purchases Inventory Inventory Purchases Inventory by tank level (Start) (End) (Month) (Change) (Start) (FYTD) (Change) instruments. McKee Run Tank levels (#2 Fuel Oil) 738,488 731,438 0 7,050 452,963 451,198 278,475 may change due to oil VanSant temperature 221,980 223,497 0 1,517 73,572 186,592 149,925 . (#2 Fuel Oil) VanSant Lifetime through March 2015 Actual Starts Factored Starts Fired Hours VanSant 1373 2352.75 4344.6 Since HGP - Dec 2004 262 685.05 961.02 Team Report: The Operations staff continues to support maintenance activities during the planned outage by serving as Confined Space Attendants for confined space areas as well as other support tasks. They assisted in the natural gas line purge on Unit 3 and on Unit 11 at VanSant. The Operations staff has also supported the outage by performing various LO/TO tasks needed to test or place equipment in or out or service. 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. The Plant Operations staff participated in simulation training held by OES-NA training which 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. 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

4.0 Maintenance During the month of March, the Plant Maintenance staff continued addressing the backlog of work orders. Back logged Work Orders are work orders that have been open for great than 30 days. There was seventy-eight work orders issued with ninety work orders being completed during the month. There were no safety work orders entered into the plant’s Computerized Maintenance Management System (MP2). The table below summarizes the monthly work order activities based on MP2 records and will improve with time. This table gives a clearer picture of outstanding work; PM’s and back logged work items. City of Dover – McKee Run & 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 1 0 1 1 0 1 0 0 CIP 16 2 18 1 1 2 15 16 CM 73 24 97 30 18 48 43 49 McKee Run EW 3 0 3 0 0 0 3 3 PM 86 46 132 28 0 28 58 104 PR 18 1 19 0 0 0 18 19 RO 39 2 41 6 2 8 33 33 SP 12 0 12 0 0 0 12 12 SW 0 0 0 0 0 0 0 0 Site Totals 248 75 323 66 21 87 182 236 Completed Total Total WO Start Received Total Comp End Site Received Completed Open Type Backlog WOs WOs WOs Backlog WOs WOs WO's CIP 3 0 3 0 0 0 3 3 CM 10 0 10 1 0 1 9 9 VanSantPM 16 3 19 2 0 2 14 17 SP 4 0 4 0 0 0 4 4 SW 0 0 0 0 0 0 0 0 Site Totals 33 3 36 3 0 3 30 33 Notable activities during the month include: The NAES Maintenance staff started the removal and replacement of the condensate lines that run to the outdoor storage tank into the main plant. The lines were damaged in part from the winter freeze as well from exposure to the weather over time. The NAES IC&E Staff and STI CEMS completed the first quarterly opacity audits. The monitors and blowers were checked for proper settings and voltage readings. The purge air filters were changed out. Units 1, 2, 3 and 11 audits were completed with no issues identified. The NAES IC&E Staff and Preferred Electrical Inc. completed the power and control wiring for the wet compression system. The wiring was installed and then terminated per project wiring diagrams. 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

5.0 Capital Improvement Projects (CIP) Project Description Update Number Progress: Spring activities include the replacement of the turbine supervisory equipment probes and panel and performing balancing of the turbine thereafter. Contractors were onsite to review/tune work schedule. EG1212 Unit 3 Turbine Repairs Schedule: Parts are on order with expected delivery date of early-to-mid April. Contractors will be back onsite to remove bearings for modifications and to install vibration monitoring equipment. Progress: Final checkout completed. Unit #3 Cooling Tower EG1402 Schedule: Still have not received final report and invoicing in order to close Repairs out the project. McKee Run HEP Pipe Progress: Work is complete and final report has been received. EG1406 Repairs Schedule: Project is complete. 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: The secondary breaker equipment and additional MCC equipment has been tied in electrically and is presently in service. Load side electrical VanSant Capacity wiring is almost complete excepting terminations of the cables. PLC EG1416 Increase programming work released to begin after conference call with Mee Industries. Schedule: Mechanical installation to start at beginning of April. Unit #3 Auxiliary System Progress: Work is complete. EG1503 Component Schedule: Work is complete. Replacement Progress: Work scopes are finalized with some work in progress. Tube Unit#3 Boiler System samples have yet to be sent out for analysis. CEMS Sample line work will be EG1504 Repairs completed in April. Schedule: Work is primarily on schedule to be completed. VanSant Station Progress: Project on Hold due to funding removed to support other CIPs. EG1505 Component Schedule: Project on Hold due to funding removed to support other CIPs. Replacement Progress: Updated Drawings and Arc Flash modifications are scheduled to be McKee Run/VanSant EG1506 completed in April. Safety Improvements Schedule: Project on schedule to completed this FY. McKee Run Units #1-#2 Progress: Project on Hold EG1507 Component Schedule: Project on Hold Replacement McKee Run/VanSant Progress: Project on Hold EG1508 Schedule: Project on Hold Structural Preservation 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

6.0 General Plant Information Plant Staff welcomed Don Mordus on March 30, 2015, as the new Plant Manager for McKee Run Generating Station. Don most recently held the position of Project Manager II with NAES in their New Castle, DE office, and brings a strong background of Plant and Project Management experience with him. In addition, Tyler Brown was welcomed as a new Operator with McKee Run. Tyler comes to us from Ohio, but is a native Eastern Shore native, along with his family. Tyler is a 2007 graduate of The Williamson Free School of Mechanical Trades in Media, PA, and brings his experience in boilers, steam turbines and cooling towers. We look forward to working with Tyler and incorporating him into our team. On-going efforts are being made to fill one (1) open Operator positions. Several interviews have been held in this effort. Training: OES-NA will be here for simulation training on April 9 and 10. The two day, eight hour course will focus on Voltage Control, Congestion Management, Disturbance Response, and Restoration. This training will help operators maintain their PJM certification. Topics discussed during the monthly safety committee meeting were reviewed by the entire staff. The monthly safety topic was on “General Safety-Take Two”. 7.0 Calendar of Events Date 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 March 2, 2015 – May 29, 2015 Unit 11 Spring Outage March 2, 2015 – May 29, 2015 Air Emission Inventory April 30, 2015 NOx Ozone Season Starts May 1, 2015 EIA-860 Reporting Due May 4, 2015 EIA-923 Reporting Due May 15, 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 Winter Capacity Period December 1, 2015 to February 28, 2016 Title V Annual Certifications Due January 31, 2016 Summary of NAES Performance to Date Plant Performance FY 2014-2015 Measure Month Year to Date YTD FY Maximum Incentive Incentive 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

Commercial 0.0% 2.66% $0 $96,875 Unavailability (CU) Safety 0 1 $9,082 $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 37.50% Total YTD Incentive $63,576 $169,532 Incentive % Note*: All units have successfully completed the Summer (FY 2014-2015) Testing for PJM and were entered in the PJM Winter Capacity Test Exemption Program. Unit 11 and Unit 3 successfully completed capacity testing for the Winter period. Units 1 and 2 did not come online so were included in the Winter Exemption Program. 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 qualified for the PJM Winter Demonstration Period Exemption Program. Note: # Depicts Net Corrected Capacity for Ambient Air Conditions – VanSant Unit only Note: ^ Depicts Derated Capacity Test Results. Derate was for 66 MW. Full Capacity Test was performed on March 4, 2015. 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

IV. Appendix 1 – PJM Invoice Breakdown Sum of Monthly Gen Load Grand Total Auction Revenue Rights $ (10,639.62) $ (10,639.62) Balancing Operating Reserve $ 8,165.35 $ 8,165.35 Balancing Operating Reserve for Load Response $ (7.17) $ (7.17) Balancing Spot Market Energy $ 10,435.62 $ 10,435.62 Balancing Transmission Congestion $ (866.97) $ (866.97) Balancing Transmission Losses $ 497.84 $ 497.84 Black Start Service $ 1,920.22 $ 1,920.22 Capacity Resource Deficiency $ (461.94) $ (461.94) Capacity Transfer Rights $ 11.76 $ 11.76 CT Lost Opportunity Cost Allocation $ (9.36) $ (9.36) Day-Ahead Load Response Charge Allocation $ 587.92 $ 587.92 Day-ahead Operating Reserve $ 5,557.42 $ 5,557.42 Day-ahead Operating Reserve for Load Response $ 116.24 $ 116.24 Day-ahead Scheduling Reserve $ 602.72 $ 602.72 Day-ahead Spot Market Energy $ 81,860.14 $ 81,860.14 Day-ahead Transmission Congestion $ (43,164.05) $ (43,164.05) Day-ahead Transmission Losses $ 4,315.70 $ 4,315.70 Expansion Cost Recovery $ 403.00 $ 403.00 FERC Annual Recovery $ 4,085.33 $ 4,085.33 Generation Deactivation Refund $ (621.16) $ (621.16) Inadvertent Interchange $ (4.39) $ (4.39) Load Management Test Failure $ (279.93) $ (279.93) Load Reconciliation for Balancing Operating Reserve $ (28.99) $ (28.99) Load Reconciliation for Day-ahead Scheduling Reserve $ (0.48) $ (0.48) Load Reconciliation for FERC Annual Recovery $ (23.16) $ (23.16) Load Reconciliation for Inadvertent Interchange $ (3.85) $ (3.85) Load Reconciliation for Market Monitoring Unit (MMU) Funding $ (1.36) $ (1.36) Load Reconciliation for Non-Synchronized Reserve $ (2.77) $ (2.77) Load Reconciliation for North American Electric Reliability Corporation (NERC) $ (4.08) $ (4.08) Load Reconciliation for Organization of PJM States, Inc. (OPSI) Funding $ (0.24) $ (0.24) Load Reconciliation for PJM Scheduling, System Control and Dispatch Service $ (71.39) $ (71.39) Load Reconciliation for Reactive Services $ (5.36) $ (5.36) Load Reconciliation for Regulation and Frequency Response Service $ (59.48) $ (59.48) Load Reconciliation for Reliability First Corporation (RFC) $ (6.64) $ (6.64) Load Reconciliation for Schedule 9-6 - Advanced Second Control Center $ (6.98) $ (6.98) Load Reconciliation for Spot Market Energy $ (12,811.23) $ (12,811.23) Load Reconciliation for Synchronized Reserve $ (38.44) $ (38.44) Load Reconciliation for Transmission Congestion $ (716.97) $ (716.97) Load Reconciliation for Transmission Losses $ (566.47) $ (566.47) Load Reconciliation for Transmission Owner Scheduling, System Control and Dispatch Service $ (25.69) $ (25.69) Locational Reliability $ 157,598.28 $ 157,598.28 Market Monitoring Unit (MMU) Funding $ 130.05 $ 130.05 Meter Error Correction $ 11,854.65 $ 11,854.65 Network Integration Transmission Service $ 76,990.92 $ 76,990.92 Non-Firm Point-to-Point Transmission Service $ (1,021.38) $ (1,021.38) Non-Synchronized Reserve $ 1,451.83 $ 1,451.83 North American Electric Reliability Corporation (NERC) $ 719.51 $ 719.51 Organization of PJM States, Inc. (OPSI) Funding $ 34.19 $ 34.19 PJM Scheduling, System Control and Dispatch Service - Advanced Second Control Center $ 1,612.18 $ 1,612.18 PJM Scheduling, System Control and Dispatch Service - Capacity Resource/Obligation Mgmt. $ 952.63 $ 952.63 PJM Scheduling, System Control and Dispatch Service - Control Area Administration $ 10,316.98 $ 10,316.98 PJM Scheduling, System Control and Dispatch Service - Market Support $ 2,378.13 $ 2,378.13 PJM Scheduling, System Control and Dispatch Service - Market Support Offset $ (270.36) $ (270.36) PJM Scheduling, System Control and Dispatch Service - Regulation Market Administration $ 81.56 $ 81.56 PJM Settlement, Inc. $ 270.36 $ 270.36 Reactive Services $ (152.48) $ (152.48) Reactive Supply and Voltage Control from Generation and Other Sources Service $ (29,467.58) $ 35,799.79 $ 6,332.21 Real-Time Load Response Charge Allocation $ 217.39 $ 217.39 Regulation and Frequency Response Service $ 19,909.45 $ 19,909.45 Reliability First Corporation (RFC) $ 1,170.74 $ 1,170.74 RPM Auction $ (140,469.48) $ (140,469.48) Synchronized Reserve $ 13,148.49 $ 13,148.49 Transmission Enhancement $ 4,194.81 $ 4,194.81 Transmission Losses $ (4,203.73) $ (4,203.73) Transmission Owner Scheduling, System Control and Dispatch Service $ 4,530.44 $ 4,530.44 Grand Total $ (174,140.79) $ 390,049.25 $ 215,908.46 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

Monthly Management Committee Update – April 2015 May 28th 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 $641,484 below budget driven by highly negative PJM Energy congestion and low PJM Energy costs. Dover’s budgeted cost for all power supply (capacity AND energy) was $75.48/MWh. The actual cost of all power supply (capacity AND energy) was $64.78/MWh. The positive $10.70 budget variance was also primarily driven by lower PJM Energy, Congestion and Losses. The cost of energy alone was $39.38/MWh, versus a budgeted energy cost of $51.57. Dover’s hedge purchases totaled 43,040 MWh, which was 82.79% of the actual load. The budgeted hedge purchase totaled 40,304 MWh which was 76% of the budgeted load. Dover’s power purchases from hedge transactions totaled $1,959,322. Purchases from PJM (energy and fees) totaled $1,085,417.63. This number includes DA spot market energy charges of $257,835.76 and Day-ahead Transmission Congestion credit of ($307,981.12). Dover’s total load was 51,985 MWh versus a forecasted load of 53,116 MWh. Dover’s planned energy purchase from the SunPark solar installation was 2,100 MWhs. Dover’s actual energy purchase from the SunPark installation was 1,830 MWh. 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

I. Supply Source Summary: II. Supply Variance: Purchased Power Variance Report: April Budget Actual Variance Gross Load 53,116 51,985 1,131 Wholesale Load 51,016 50,155 861 Hedged Volume (MWh) 40,304 43,040 (2,736) Unhedged Volume (MWh) 10,712 7,115 3,597 Dover SunPark Volume (MWh) 2,100 1,830 270 Renewable Energy Credits Volume 315 199 116 Hedged Cost ($/MWh) $ 47.90 $ 45.52 $ 2 Unhedged Energy Cost ($/MWh) $ 52.92 $ (17.46) $ 70 Solar Energy Cost ($/MWh) $ 115 $ 116 $ (1) Energy Costs ($/MWh) $51.57 $39.38 $12.19 All-in Costs - Energy, Capacity and RECs ($/MWh) $75.48 $64.78 $10.70 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

b. Generation Summary: Net generation revenue for the month of April was $170,916 vs. a budget of $346,820. 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

Generation Breakdown: City of Dover Monthly Wholesale Generation Formula April 2015 Net Generation 0.00 Production Margin PJM - Generation Economic and Reliability Dispatch $ - A Natural Gas & Oil Consumption Purchases for Generation $ - Natural Gas Transport $ - Eastern Shore Cashout $ - 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 $ 702,347.40 Reactive Supply and Transmission Losses $ 34,698.10 Subtotal: PJM - Capacity $ 737,045.50 F All in Generation Margin All in Generation Margin Total $ 737,045.50 (G = C + F) 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

c. Emissions Summary: Emissions Allowance Summary through April 30, 2015 The reinstated Cross-State Air Pollution Rule (CSAPR) replaced the Clean Air Interstate Rule (CAIR) beginning January 1, 2015. The final CAIR true-ups for 2014 will occur in 2015, after which CAIR allowances will have no value. 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 will remain in effect, however the CAIR provisions for SO 2 are no longer applicable to Dover’s generating units. 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. 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 SO2 allowances. Mark Value for Clean Air Act Title IV Allowances Commodity $/Ton Tons Market Value ICE Settlement as of May SO2 Allowances – Title IV $0.375 15,018 $ 5,632 TOTAL $ 5,632 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) 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 equal the average for 2009 – 2014, and (2) future annual emissions equal to the highest emissions for 2009 – 2014. 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

Dover, DE RGGI Allowance History and Forecast - April 30, 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 6,000 N/A 2,579 98,338 18,021 33,000 82,896 67,917 2016 N/A 18,021 33,000 64,875 34,917 2017 N/A 18,021 33,000 46,854 1,917 2018 N/A 18,021 33,000 28,833 -31,083 2019 N/A 18,021 33,000 10,812 -64,083 2020 N/A 18,021 33,000 -7,209 -97,083 Dover RGGI Allowance History and Projection April 30, 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) 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

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 and Auction 27 held on March 11, 2015. It was awarded 1,000 allowances from its highest price bid, at the auction clearing price of $5.21/ton in Auction 26 and 6,000 allowances in Auction 27 at the auction clearing price of $5.41/ton. Auction 28 is scheduled for June 3, 2015. TEA and Dover have begun preparations to participate in this upcoming auction. Based on the May 18th, 2015 ICE price for the June 2015 strip ($5.45/ton), the estimated market value of Dover’s existing 98,338 ton RGGI allowance bank is $535,942. 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 April, 2015, Dover had accumulated a total of 6,930 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. 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

d. Operations Management Summary: During the month of April, there were no reportable lost time accidents, although one of our employees was injured April 16th, while moving a waste oil drum into a storage shed for shipment. The facility has gone 14 days without an OSHA recordable accident and 107 consecutive days without a lost time accident. There were no Environmental Notice of Violations or exceedances issued during the month and there was one Near Miss reported. All units are currently in a planned outage cycle for the month of April and will be made available as the projected outage work for each unit is completed. Monthly Budget Variance – The actual expenses attributable to O&M of the two sites for the month of April are $566,130 against a budgeted amount of $389,431 for an unfavorable variance of $176,699 or 45.37%. The principal reasons for the unfavorable variance were due to unbudgeted repairs to all three boilers, repairs to the Unit #3A ID fan and two monthly electricity invoices which were included during this period due to the timing of the invoice payment. The forecasted expenditures for this year are $6,051,604 expensed versus an approved budget of $6,141,000 thereby resulting in a 98.54% expenditure rate of the approved budget to year end. e. Risk Management Summary: Forward power prices in PJM have increased from last month. The current projected cost of service is below: Blended Hedge Cost Monthly Change PY Ratio ($/MWh) ($/MWh) 2014-15 79% $ 46.67 $ 0.18 2015-16 69% $ 44.31 $ 0.57 2016-17 47% $ 42.82 $ 0.31 2017-18 37% $ 42.84 $ 0.12 2018-19 25% $ 42.88 $ 0.21 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

II. Budget Report Budget Actual Variance Apr-15 Apr-15 Gross Load 53,116 51,985 1,131 Power Supply Hedged Energy $1,930,633 $1,959,322 ($28,689) PJM - Energy, Congestion & Losses $566,853 ($124,248) $691,101 PJM - ARR, Transmission and Fees $356,587 $424,245 ($67,658) Dover SUN Park Energy $241,744 $212,274 $29,470 Dover SUN Park RECs $33,325 $27,546 $5,779 Management Fees $83,000 $83,000 $0 PJM - Capacity UCAP Obligated Purchased $796,901 $ 785,420.74 $11,480 Subtotal - Power Supply $4,009,043 $3,367,559 $641,484 Power Generation O&M Plant O&M $389,431 $566,130 (176,699.00) Subtotal Generation O&M $389,431 $566,130 ($176,699) 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 ($716,626) $ (702,347.40) ($14,279) Capacity Replacement Charge $10,800 $ - $10,800 PJM - Reactive Supply & Transmission Losses ($30,425) $ (34,698.10) $4,273 Subtotal - Non-Production Revenue ($736,251) ($737,046) $795 SubTotal - All Generation ($346,820) ($170,916) ($175,905) Total - Utilities Cost $3,662,223 $3,196,644 $465,579 Unit Costs Total - Power Supply $75.48 $64.78 $10.70 Total - Power Generation ($6.53) ($3.29) ($3.24) Final Cost of Service to City of Dover Ratepayers $68.95 $61.49 $7.46 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

Variance Analysis: Power Supply  Dover consumed 1,131 MWh less than forecasted for the month.  Dover experienced a favorable variance for budgeted PJM - Energy, Congestion & Losses of $691,101.  This resulted in a net power supply cost of $64.78/MWh, $10.70/MWh below budget.  The city realized a favorable variance of $641,484 for power supply vs. the monthly budget.  Dover Sun Park generated 116 MWh less than forecast. Generation  Power generation had an unfavorable budget variance of $175,905 driven primarily by Plant O&M expenses which had an unfavorable budget variance of $ 176,699 for the month. 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

Budget Actual Variance YTD YTD Gross Load 561,241 623,988 (62,746) Power Supply Hedged Energy $18,041,620 $22,283,136 ($4,241,516) PJM - Energy, Congestion & Losses $10,107,569 $7,773,953 $2,333,616 PJM - ARR, Transmission and Fees $3,352,838 $3,534,960 ($182,123) Dover SUN Park Energy $1,577,781 $1,483,384 $94,397 Dover SUN Park RECs $294,995 $286,093 $8,902 Management Fees $830,000 $996,000 ($166,000) PJM - Capacity UCAP Obligated Purchased $8,075,262 $7,947,637 $127,625 Subtotal - Power Supply $42,280,065 $44,305,163 ($2,025,099) Power Generation O&M Plant O&M $4,597,010 $5,001,794 ($404,784) Subtotal Generation O&M $4,597,010 $5,001,794 ($404,784) Power Generation Production Margin PJM - Economic and reliability dispatch ($1,786,240) ($2,388,055) $601,815 Fixed Fuel and Transport Charges $1,288,950 $1,551,267 ($262,317) Subtotal Generation Production Margin ($497,290) ($836,789) $339,499 Power Generation Non-Production Revenue PJM - Generation Capacity Credit ($7,261,819) ($7,108,178) ($153,641) Capacity Replacement Charge $109,440 $0 $109,440 PJM - Reactive Supply & Transmission Losses ($400,205) ($581,473) $181,268 Subtotal - Non-Production Revenue ($7,552,584) ($7,689,651) $137,067 SubTotal - All Generation ($3,452,864) ($3,524,646) $71,782 Total - Utilities Cost $38,827,201 $40,780,518 ($1,953,317) Unit Costs Total - Power Supply $75.33 $71.00 $4.33 Total - Power Generation ($6.15) ($5.65) ($0.50) Final Cost of Service to City of Dover Ratepayers $69.18 $65.35 $3.83 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

III. Operations Management NAES Corporation Dover, Delaware April 2015 Monthly Report New Inlet Fogging System and Skid Installed at Van Sant Generating Station for Increased Unit Capacity 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

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 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

1.0 Environmental, Health and Safety: During the month of April, there were no lost time accidents or environmental incidents. A recordable injury occurred on April 16, 2015 when an employee smashed his hand while attempting to place a used oil drum into the Used Oil Building. The employee received two stitches to close a cut on the back of his hand he sustained when the accident occurred. He returned to work the same day. The facility has gone 14 days through April 30, 2015 without an OSHA Recordable Accident or a Lost Time reportable accident. One Near Miss reported in April at McKee Run when an Operations Supervisor and a Maintenance Supervisor identified that a LOTO was inadequate prior to maintenance work was being started on the equipment. When walking down the LOTO, it was noticed that the lube oil pumps for the ID Fans and the Boiler Feed Pumps were not included under the LOTO. The potential existed for the lube oil pumps to become energized which could have caused bodily injury to the employee, the employee to become covered in lube oil or the potential for an environmental spill. The LOTO was corrected and work was completed with no other issues. During the month of April, there were no IWW discharges to the Kent County Public Works sewer system. The April SIU Report was submitted to Kent County Public Works indicating no discharge occurred in April. As required by the DNREC NPDES permit, McKee Run was required to sample all storm water outfalls (001, 004, 005 and 006) as specified in the October 1, 2014 NPDES permit. The laboratory sample results indicated that all samples were below permissible levels. (The April DMR was submitted to DNREC with the analytical results from this sampling event.) Three (3) NAES employees attended and completed an annual DOT/RCRA refresher course that covered DOT hazardous material training, awareness and security training plus RCRA hazardous waste handling training. The VanSant Quarterly Excess Emission (opacity) report was submitted to DNREC. The State and Local Emissions Inventory System (SLEIS) Report was submitted to DNREC on April 28, 2015. The new Designated Representative for McKee Run and VanSant is Scott D. Koenig, City Manager, City of Dover and the new Alternate Designated Representative is Harry Maloney, III, City of Dover Electric Director. Cover Picture: Pictured is the new VanSant Generating Station Inlet Fogging equipment installed during the spring outage. Final setup and verification of the inlet fogging system flow and spray patterns will be performed in the coming weeks to allow for increased capacity of the VanSant combustion turbine during the summer operating period. 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

Environmental, Health, and Safety Statistics Month Fiscal Year to Date (April) (7/1/14-6/30/15) NOVs 0 0 Opacity Deviations 0 5 Environmental Deviations 0 0 OSHA Recordable 1 2 OSHA LTA's 0 1 First Aid cases 0 0 Restricted Workday Accident 0 0 Near Miss 1 15 Man Hours Worked 4,040 96,474.75 Date last OSHA Recordable 4/16/15 Date last Lost Time Accident 4/16/15 Days since last OSHA recordable 14 Days since last Lost Time Accident 14 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 2015 0 1850 138 10 1,978 Total SO2 Allowance Balance 15,018 *Note – Emissions allowances are deducted according to oldest vintage first, unless otherwise directed. CO2 Allowance Summary CO2 Allowance CO2 Allowances CO2 Allowances Available Total CO2 Tons CO2 Allowance Vintage Bought/Sold (Per Facility, Prior to Sale)* Emitted Balance YTD McKee Run VanSant 2014 and earlier 1,000 194,244 7,799 108,126 94,917 2015 6,000 2,176 403 2,579 3,421 Total CO2 Allowance Balance 98,338 *Note: CO2 allowance values are provided by the RGGI CO2 Allowance Tracking System. **Note: 6,000 CO2 Tons Purchased in 2015 Auction 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

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 0.0 0.0 0.0 0.0 0.0 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 0.0 0.0 2.1 1.2 3.3 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 0.4 10.0 2.0 Financial Financial – Current Month Month – April Actual Budget Variance Personnel 232,647 251,100 18,453 Materials & Supplies 10,531 16,550 6,019 Administrative Expenses 322,952 121,781 (201,171) Total $566,130 $389,431 ($176,699) Financial – Fiscal Year to Date Number of Months 10 Actual Budget Variance Personnel 2,581,506 2,798,400 216,894 Materials & Supplies 240,295 206,950 (33,345) Administrative Expenses 1,904,690 1,591,660 (313,030) Total $4,726,491 $4,597,010 ($129,481) 2.1 Variance analysis: The actual expenses for the month of April are $566,130 against a budgeted amount of $389,431 for an unfavorable variance of $176,699 or 45.37%. The variance was due to the following: PERSONNEL EXPENSES – A favorable monthly variance of $18,453 was due to having a less than full complement of staff. As a result, this impacted three (3) labor accounts – Straight Time, Overtime, and Labor Burdens. MATERIALS AND SUPPLIES EXPENSES- A favorable monthly variance of $6,019 was due to purchasing computer equipment earlier in the fiscal year that was budgeted for in April. ADMINISTRATIVE EXPENSES – An unfavorable monthly variance of $201,171 due to costs associated with the required repairs to all three boilers and to the Unit #3A ID fan (bearing failure). A budget amendment was approved to address the shortage. In addition, there were (2) monthly electricity bills that were expensed in this period due to timing of invoice payment. The forecasted expenses for this fiscal year are $6,051,604 expensed versus an approved budget of $6,141,100 thereby realizing a 98.54% expenditure rate. 3.0 Operations Unit Operations / Outages / Trips: All units remained in a planned outage since March 2. Outage is scheduled to clear at 0700 hours on May 29. 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

Month – April 2015 McKee McKee McKee MRS Facility VanSant Total Unit 1 Unit 2 Unit 3 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 24.399 24.399 121.100 169.898 4.180 174.078 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 % 0.0 0.0 0.0 0.0 0.0 0.0 Commercial % 0.0 0.0 0.0 0.0 0.0 0.0 Unavailability (CU) Capacity MW 17 17 102 136 39 175 On Line Hours Hrs 30.966 35.134 491.432 557.532 27.700 585.232 Starts # 3 5 36 44 6 50 Gross Generation MWh 261.694 252.941 24,778.323 25,292.958 981.195 26,274.153 Net Generation MWh 247.853 233.930 22,552.917 23,034.700 970.476 24,005.176 Total Auxiliaries MWh 271.596 276.766 4,425.998 4,974.360 39.042 5,013.402 Auxiliaries purchased MWh 291.088 291.088 2,250.712 2,832.888 46.599 2,879.487 Fuel Gas Used MMBTU 3,780.381 3,255.417 243,226.480 250,262.278 7,544.726 257,807.004 Fuel Oil Used MMBTU 0.0 0.0 20,793.918 20,793.918 5,209.202 26,003.120 Fuel Oil Used Gallons 0.0 0.0 150,686 150,686 37,645 188,331 Total Fuel MMBTU 3,780.381 3,255.417 264,020.398 271,056.196 12,753.928 283,810.124 Net Heat Rate BTU/KWh 15.253 13.916 12.257 13.808 13.121 13.464 Unit Trips # Hours 1 720.000 3 720.000 1 720.000 5 2,160.000 1 720.000 6 2,880.000 Capacity Factor % 0.20 0.19 3.03 2.29 0.34 1.85 Availability Factor % 57.11 56.03 53.55 55.56 59.64 56.58 Commercial % 2.53 3.61 3.60 3.25 0.0 2.66 Unavailability (CU) Planned Outage Hours Hours 2,944.00 2,944.00 3,125.930 9,013.930 2,944.00 11,957.930 Maintenance Outage Hours 0.0 0.0 0.0 0.0 0.0 0.0 Hours Forced Outage Hours Hours 184.920 263.500 255.157 703.577 0.0 703.577 Reserve Shutdown Hours 4,135.114 4,052.366 3,414.814 11,602.294 4,323.300 15,925.594 Hours HW Boiler Gas Usage MMBTU 6,491.061 6,491.061 Pilot Gas Usage MMBTU 527.631 623.391 1,151.022 1,151.022 Planned Outage Hours 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 0.0 0.0 737.000 0.0 744.000 0.0 497.000 744.000 0.0 744.000 1,971.000 1,971.000 0.0 744.000 744.000 737.0001,971.0 737.00 Hours HW Boiler Gas Usage MMBTU 36.006 36.006 Pilot Gas Usage 301 W. Bay Street, MMBTU Suite 2600  Jacksonville, 0.0 FL 32202 0.0  Tel: 904.356-3900  Toll-Free: 0.0 800.423.4800 0.0

# Note: Does not include HWB or Pilot Gas. Fuel usage numbers are taken from fuel flow instruments. Fuel Oil Inventory Note: As Monthly Monthly Fuel Monthly FY 14-15 Fuel FY 14-15 measured Inventory Inventory Purchases Inventory Inventory Purchases Inventory by tank level (Start) (End) (Month) (Change) (Start) (FYTD) (Change) instruments. McKee Run Tank levels (#2 Fuel Oil) 731,438 733,644 0 2,206 452,963 451,198 278,475 may change due to oil VanSant temperature 223,497 225,267 0 1,770 73,572 186,592 149,925 . (#2 Fuel Oil) VanSant Lifetime through April 2015 Actual Starts Factored Starts Fired Hours VanSant 1,373 2,352.75 4,344.6 Since HGP - Dec 2004 262 685.05 961.02 Team Report: The Plant Operations PJM certified staff members participated in simulation training provided by OES-NA. This training helps operators acquire required continuing education hours (CEHs) necessary to maintain their PJM Certified System Operator qualifications. 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. The operators also use the GPi Learning courses to improve their knowledge and skills. The GPI online training which supports plant safety, OSHA, and environmental training requirements are being used by the teams to complete their training for the year. Along with the GPI OSHA training, the operators review the plant’s safety procedures. The Plant Operations staffs are writing Job Hazard Analysis (JHA) for monthly preventative maintenance work tasks and other standard duties at the plant. The JHAs will aid in improving safe work practices and improve safety awareness. 4.0 Maintenance During the month of April, 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 30 days. There were seventy-three work orders issued with one hundred three 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. A new category was added to the WO Type, “ADM” for work orders that are administrative in nature. The table below summarizes the monthly work order activities based on MP2 records and will continue to improve with time. This table gives a clearer picture of outstanding work; PM’s and back logged work items. 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

City of Dover – McKee Run & 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 0 4 4 0 2 2 0 2 ADM 23 0 23 0 0 0 23 23 CIP 16 2 18 0 2 2 16 16 CM 45 14 59 13 6 19 32 40 McKee Run EW 3 0 3 1 0 1 2 2 PM 98 34 132 55 0 55 43 77 PR 11 2 13 1 1 2 10 11 RO 28 6 34 9 5 14 19 20 SP 5 3 8 2 0 2 3 6 SW 0 0 0 0 0 0 0 0 Site Totals 229 67 296 81 18 99 148 197 Completed Total WO Start Received Total Comp End Site Received Completed Type Backlog WOs WOs WOs Backlog WOs WOs 16 ADM 0 0 0 0 0 0 0 0 CIP 3 0 3 0 0 0 3 3 VanSant CM 9 2 11 1 2 3 8 8 PM 16 3 19 1 0 1 15 18 SP 4 1 5 0 0 0 4 5 SW 0 0 0 0 0 0 0 0 Site Totals 32 6 38 2 2 4 30 34 Notable activities during the month include: The NAES IC&E staff and JB Testing completed the underground oil line testing. The oil lines were purged with nitrogen and then helium was injected into the lines. The path of the oil lines were tested for leaks with a helium detector by the contractor. There were no leaks detected. This is an annual test to help in monitoring the integrity of the oil lines and to remain in compliance with Delaware AST regulations. The NAES Maintenance Staff completed the replacement of the condensate lines that supply water to the boilers and indoor condensate tank from the outdoor condensate. It was discovered that the lines were corroded and were in need to replacement. The lines were installed and tested for water leaks. No leaks were detected. This will improve the reliability of the condensate water supply to the boilers. The NAES IC&E Staff and Meggitt Vibration Systems worked on the installation of a new Turbine Supervisory System which includes new vibration and expansion equipment on the Unit 3 turbine. Vibration probes were installed on the X and Y axis of each bearing location. In addition, sensors were also installed to monitor turbine expansion and shell expansion as well as provide a back-up RPM monitoring. Installation of the equipment will provide more accurate and reliable information on the status of the turbine. The system will be commissioned in mid-May when the unit will be operated to determine whether further balancing of the unit will be needed. 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

5.0 Capital Improvement Projects (CIP) Project Description Update Number Progress: Spring activities included the replacement of the turbine supervisory equipment probes and panel and performing balancing of the turbine thereafter. Contractors were onsite to begin the installation work. Schedule: Some parts are on back order with expected delivery date of early- EG1212 Unit 3 Turbine Repairs to-mid May. Contractors will be back onsite to remove bearings for modifications and to install vibration monitoring equipment. Unit will be operated in May to check out system and to run vibration tests for balancing purposes. Unit #3 Cooling Tower Progress: Work is complete and final report has been received. EG1402 Repairs Schedule: Project is complete. McKee Run HEP Pipe Progress: Work is complete and final report has been received. EG1406 Repairs Schedule: Project is complete. 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: Mechanical work is almost complete with final tie-in work to be completed in May and commissioning of system to occur in late May. VanSant Capacity Emission testing scheduled for late June. EG1416 Increase Schedule: Mechanical installation to be complete at end of May. PLC programming and commissioning of system to occur shortly thereafter. Emission testing scheduled for late June. Unit #3 Auxiliary System Progress: Work is complete. EG1503 Component Schedule: Work is complete. Replacement Progress: Tube samples have yet to be sent out for analysis. CEMS Sample Unit#3 Boiler System EG1504 line work was completed in April. Repairs Schedule: Work is on schedule to be completed. VanSant Station Progress: Project on Hold due to funding removed to support other CIPs. EG1505 Component Schedule: Project on Hold due to funding removed to support other CIPs. Replacement Progress: Updated Drawings received and final work to be completed in McKee Run/VanSant EG1506 June. Safety Improvements Schedule: Project on schedule to completed this FY. McKee Run Units #1-#2 Progress: Project on Hold EG1507 Component Schedule: Project on Hold Replacement McKee Run/VanSant Progress: Project on Hold EG1508 Schedule: Project on Hold Structural Preservation 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

6.0 General Plant Information Plant Staff congratulated William (Lance) Berryhill, Operations Supervisor, for achieving 30 years of continuous Plant Service on April 15, 2015. The momentous occasion was observed with a congratulatory cake and thanks from everyone for his hard work and dedication over the years. A presentation of his service awards will be held separately. On-going efforts are being made to fill one (1) open Operator positions. Several interviews have been held in this effort. Training: Pat Everly of OES-NA was onsite for simulation training on April 9 and 10. The two day, eight hour course focused on Voltage Control, Congestion Management, Disturbance Response, and Restoration. The training consists of sharing a laptop with two operators as they worked together to restore power from a black start condition. This training will help operators maintain their PJM certification by obtaining simulation credits. Plant employees continue with General Physics safety training and environmental courses to enhance their overall knowledge of permit and safety requirements. Topics discussed during the monthly safety committee meeting were reviewed by the entire staff. The monthly safety topic was on “Lawn Care Safety”. Calendar of Events Date Units 1, 2, and 3 Spring Outage April 2, 2015 – May 29, 2015 Unit 11 Spring Outage April 2, 2015 – May 29, 2015 Air Emission Inventory April 30, 2015 NOx Ozone Season Starts May 1, 2015 EIA-860 Reporting Due May 4, 2015 EIA-923 Reporting Due May 15, 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 Winter Capacity Period December 1, 2015 to February 28, 2016 Title V Annual Certifications Due January 31, 2016 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

7.0 Summary of NAES Performance to Date Plant Performance FY 2014-2015 Measure Month Year to Date YTD FY Maximum Incentive Incentive Commercial 0.0% 2.66% $0 $96,875 Unavailability (CU) Safety 0 1 $9,082 $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 37.50% Total YTD Incentive $63,576 $169,532 Incentive % Note*: All units have successfully completed the Summer (FY 2014-2015) Testing for PJM and were entered in the PJM Winter Capacity Test Exemption Program. Unit 11 and Unit 3 successfully completed capacity testing for the Winter period. Units 1 and 2 did not come online so were included in the Winter Exemption Program. 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 qualified for the PJM Winter Demonstration Period Exemption Program. Note: # Depicts Net Corrected Capacity for Ambient Air Conditions – VanSant Unit only Note: ^ Depicts Derated Capacity Test Results. Derate was for 66 MW. Full Capacity Test was performed on April 4, 2015. 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

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 FINAL BILLING STATEMENT ISSUED: 5/7/2015 9:07 BILLING PERIOD START DATE: 4/1/2015 BILLING PERIOD END DATE: 4/30/2015 INVOICE NUMBER: 2015043000076 INVOICE DUE DATE: 5/15/2015 12:00 SOURCE BILLING PERIOD CHARGES ADJ BILLING LINE ITEM NAME START AMOUNT ($) 1100 Network Integration Transmission Service 384954.6 1108 Transmission Enhancement 66224.76 1130 Firm Point-to-Point Transmission Service 0 1140 Non-Firm Point-to-Point Transmission Service 0 1200 Day-ahead Spot Market Energy 257835.76 1205 Balancing Spot Market Energy -40376.27 1210 Day-ahead Transmission Congestion -307981.12 1215 Balancing Transmission Congestion 9259.37 1220 Day-ahead Transmission Losses -1340.45 1225 Balancing Transmission Losses -608.66 1230 Inadvertent Interchange -145.33 1242 Day-Ahead Load Response Charge Allocation 147.64 1243 Real-Time Load Response Charge Allocation 2016.9 1250 Meter Error Correction -1877.18 PJM Scheduling, System Control and Dispatch Service - 1301 Control Area Administration 8649.13 PJM Scheduling, System Control and Dispatch Service - 1302 FTR Administration 6.82 PJM Scheduling, System Control and Dispatch Service - 1303 Market Support 1990.39 PJM Scheduling, System Control and Dispatch Service - 1304 Regulation Market Administration 79.29 PJM Scheduling, System Control and Dispatch Service - 1305 Capacity Resource/Obligation Mgmt. 921.9 PJM Scheduling, System Control and Dispatch Service - 1306 Advanced Second Control Center 1343.11 PJM Scheduling, System Control and Dispatch Service - 1307 Market Support Offset -224.93 1313 PJM Settlement, Inc. 224.93 1314 Market Monitoring Unit (MMU) Funding 205.12 1315 FERC Annual Recovery 3424.9 1316 Organization of PJM States, Inc. (OPSI) Funding 35.28 1317 North American Electric Reliability Corporation (NERC) 603.21 1318 Reliability First Corporation (RFC) 981.42 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

Transmission Owner Scheduling, System Control and 1320 Dispatch Service 3798.05 Reactive Supply and Voltage Control from Generation and 1330 Other Sources Service 36198.31 1340 Regulation and Frequency Response Service 13755.44 1360 Synchronized Reserve 8586.26 1362 Non-Synchronized Reserve 766.42 1365 Day-ahead Scheduling Reserve 42.39 1370 Day-ahead Operating Reserve 2768.36 1375 Balancing Operating Reserve 3176.77 1376 Balancing Operating Reserve for Load Response -10.31 1378 Reactive Services 8334.47 1380 Black Start Service 1997.26 1400 Load Reconciliation for Spot Market Energy -23262.54 1410 Load Reconciliation for Transmission Congestion -5794.83 1420 Load Reconciliation for Transmission Losses -1699.27 1430 Load Reconciliation for Inadvertent Interchange -13.14 Load Reconciliation for PJM Scheduling, System Control 1440 and Dispatch Service -69.74 Load Reconciliation for Schedule 9-6 - Advanced Second 1442 Control Center -7.32 Load Reconciliation for Market Monitoring Unit (MMU) 1444 Funding -1.29 1445 Load Reconciliation for FERC Annual Recovery -22.63 Load Reconciliation for Organization of PJM States, Inc. 1446 (OPSI) Funding -0.23 Load Reconciliation for North American Electric Reliability 1447 Corporation (NERC) -3.98 1448 Load Reconciliation for Reliability First Corporation (RFC) -6.48 Load Reconciliation for Transmission Owner Scheduling, 1450 System Control and Dispatch Service -25.09 Load Reconciliation for Regulation and Frequency 1460 Response Service -141.59 1470 Load Reconciliation for Synchronized Reserve -116.21 1472 Load Reconciliation for Non-Synchronized Reserve -10.06 1475 Load Reconciliation for Day-ahead Scheduling Reserve -27.12 1478 Load Reconciliation for Balancing Operating Reserve -52.32 1490 Load Reconciliation for Reactive Services -22.61 1500 Financial Transmission Rights Auction -1197.3 1600 RPM Auction 14277.6 1610 Locational Reliability 787991.4 1730 Expansion Cost Recovery 403.2 1932 Generation Deactivation Refund -608.92 1230 A Inadvertent Interchange 2/1/2015 36.24 1230 A Inadvertent Interchange 3/1/2015 19.42 1243 A Real-Time Load Response Charge Allocation 2/1/2015 9.96 1243 A Real-Time Load Response Charge Allocation 3/1/2015 2.68 1250 A Meter Error Correction 3/1/2015 -7793.79 Transmission Owner Scheduling, System Control and 1320 A Dispatch Service 7/1/2014 -0.02 1360 A Synchronized Reserve 4/1/2013 -1017.1 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

1360 A Synchronized Reserve 5/1/2013 -748.97 1360 A Synchronized Reserve 6/1/2013 -173.63 1360 A Synchronized Reserve 7/1/2013 -4837.7 1360 A Synchronized Reserve 8/1/2013 -1544.25 1360 A Synchronized Reserve 9/1/2013 -13393.88 1360 A Synchronized Reserve 10/1/2013 -165.35 1360 A Synchronized Reserve 11/1/2013 -4.2 1360 A Synchronized Reserve 12/1/2013 -154.49 1360 A Synchronized Reserve 2/1/2015 -1.18 1360 A Synchronized Reserve 3/1/2015 -0.01 1370 A Day-ahead Operating Reserve 3/1/2015 29.34 1375 A Balancing Operating Reserve 3/1/2014 1.02 1375 A Balancing Operating Reserve 5/1/2014 13.1 1375 A Balancing Operating Reserve 6/1/2014 17.96 1375 A Balancing Operating Reserve 7/1/2014 4.28 1375 A Balancing Operating Reserve 9/1/2014 5.43 1375 A Balancing Operating Reserve 10/1/2014 1.03 1375 A Balancing Operating Reserve 1/1/2015 0.82 1375 A Balancing Operating Reserve 2/1/2015 36.49 1375 A Balancing Operating Reserve 3/1/2015 36.59 1376 A Balancing Operating Reserve for Load Response 3/1/2015 -0.01 1730 A Expansion Cost Recovery 4/1/2015 -2.36 1911 A Michigan - Ontario Interface Phase Angle Regulators 3/1/2015 172.59 Total Charges 1205903.55 SOURCE BILLING PERIOD CREDITS ADJ BILLING LINE ITEM NAME START AMOUNT ($) 2100 Network Integration Transmission Service 0 2108 Transmission Enhancement 62029.95 2130 Firm Point-to-Point Transmission Service 0 2140 Non-Firm Point-to-Point Transmission Service 204.85 2210 Transmission Congestion -11796.35 2220 Transmission Losses 14517.92 Transmission Owner Scheduling, System Control and 2320 Dispatch Service 0 Reactive Supply and Voltage Control from Generation and 2330 Other Sources Service 29467.58 2340 Regulation and Frequency Response Service 0 2360 Synchronized Reserve 0 2365 Day-ahead Scheduling Reserve 0 2370 Day-ahead Operating Reserve 0 2375 Balancing Operating Reserve 0 2380 Black Start Service 0 2420 Load Reconciliation for Transmission Losses -341.02 2510 Auction Revenue Rights 53198.1 2600 RPM Auction 716625 2630 Capacity Transfer Rights -58.8 2661 Capacity Resource Deficiency 2629.46 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

2666 Load Management Test Failure 270.9 2912 CT Lost Opportunity Cost Allocation 39 2140 A Non-Firm Point-to-Point Transmission Service 3/1/2015 31.89 2220 A Transmission Losses 2/1/2015 4.15 2220 A Transmission Losses 3/1/2015 -7.36 2360 A Synchronized Reserve 7/1/2013 -4456.55 2360 A Synchronized Reserve 9/1/2013 -4827.64 2912 A CT Lost Opportunity Cost Allocation 4/1/2015 0.34 Total Credits 857531.42 Monthly Billing Net Total 348372.13 Previous Weekly Billing Net Total 313493.97 Total Due / Receivable 34878.16 End of Report 301 W. Bay Street, Suite 2600  Jacksonville, FL 32202  Tel: 904.356-3900  Toll-Free: 800.423.4800

FUND SUMMARY as of 05/15/2015 Total Collected $ 1,145,099.76 DEMEC Admin Fee Paid $ 67,703.86 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 $ 298,908.32 Energy Depot Fees Paid $ 56,901.77 Efficiency Program Dollars Paid $ 37,268.34 Solar Electric Power Association (SEPA) Fee Paid $ 6,476.41 Unencumbered Funds Available Grants $ 5,538.99 Funds Available for Dover Library $ 110,000.00 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 M. Geo-Res $ 3,000.000 $ 225.000 $ - 3/23/2010 Minaxi Patel PV-Res $ 15,000.000 $ 750.000 $ - 5/28/2010 Nancy Warner Geo-Res $ 1,200.000 $ 90.000 $ - 6/2/2010 David Teel Geo-Res $ 1,800.000 $ 135.000 $ - 6/2/2010 Dewey J. Barich Geo-Res $ 2,400.00 $ 180.000 $ - 7/12/2010 Mike & Sharon Laverty PV-Res $ 5,105.000 $ 382.880 $ - 8/19/2010 James Grilli Geo-Res $ 1,800.00 $ 135.000 $ - 8/19/2010 Michael Noble PV-Res $ 15,000.000 $ 750.000 $ - 9/17/2010 David Teel PV-Res $ 7,500.000 $ 562.500 $ - 3/8/2011 Michael & Carol Apgar PV-Res $ 7,500.000 $ 562.500 $ - 3/17/2011 Elizabeth Murphey School Geo-NonRes $ 9,200.000 $ 690.000 $ - 5/24/2011 Richard Avant Geo-Res $ 2,400.000 $ 180.000 $ - 6/23/2011 Charles Messina Plumbing & SHW-NonRes $ 10,000.000 $ 750.000 $ - 10/4/2011 Charles Bounds Geo-Res $ 1,800.000 $ 135.000 $ - 3/29/2011 Michael J Kopp Geo-Res $ 2,300.000 $ 135.000 $ 37.500 7/8/2011 Psychiatric Access of Central DE PV-NonRes $ 13,187.500 $ 750.000 $ - 3/7/2012 Ruth Ann Piper Geo-Res $ 1,200.000 $ 90.00 $ - 3/7/2012 Robert Hall Geo-Res $ 3,000.000 $ 225.00 $ - 3/7/2012 Elizabeth Murphey School (Bradford Geo-NonRes $ 13,800.000 $ 750.00 $ - 3/7/2012 Elizabeth Murphey School (Florence Geo-NonRes $ 12,000.000 $ 750.00 $ - 3/7/2012 Elizabeth Murphey School (Elizabeth Geo-NonRes $ 5,400.000 $ 405.00 $ - 3/7/2012 Elizabeth Murphey School (Garage & Geo-NonRes $ 1,800.000 $ 135.00 $ - 3/7/2012 Frank Daniels Geo-Res $ 4,400.000 $ 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 201 $ 1,692.13 Total Paid $ 56,901.77 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 $ 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 $ 298,908.32 $ 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 All 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 All of April 2015 GEF Payment All of May 2015 GEF Payment All of June 2015 GEF Payment $ 424,437.37 Total Collections

City of Dover Electric Revenue Fund FY15 - White Oak Solar Park Incremental Cost Original July August September October November December January February YTD Budget Power Supply & Generation Dover Sun Park - Energy $ 227,139 $ 219,981 $ 185,885 $ 140,672 $ 96,640 $ 54,849 $ 80,597 $ 111,516 $ 1,117,277 $ 2,067,600 Dover Sun Park - REC's 47,469 42,307 33,221 25,192 17,303 9,828 14,396 - 189,716 378,600 Total Power Supply Cost 274,609 262,288 219,105 165,864 113,943 64,677 94,993 111,516 1,306,993 2,446,200 Non-Solar Power Supply Cost (170,970) (136,533) (97,948) (80,182) (63,893) (26,259) (48,763) (103,862) (728,410) (860,244) Incremental Energy Cost $ 103,639 $ 125,755 $ 121,157 $ 85,682 $ 50,050 $ 38,418 $ 46,229 $ 7,654 $ 578,583 $ 1,585,956 Revenues Customer Sales - Electricity (9,870) (8,024) (7,893) (7,840) (8,061) (8,135) (8,448) (8,367) (66,638) (84,600) Rent Receipts (14,807) - - (14,807) - - (15,177) - (44,792) (101,400) Total Revenues (24,677) (8,024) (7,893) (22,647) (8,061) (8,135) (23,625) (8,367) (111,429) (186,000) Incremental Sun Park Cost $ 78,962 $ 117,731 $ 113,264 $ 63,034 $ 41,989 $ 30,283 $ 22,604 $ (713) $ 467,154 $ 1,399,956 MWh Purchased/Generated - Solar 2,217.724 2,006.392 1,602.868 1,213.000 833.320 472.956 694.980 961.592 10,002.832 18,159.000 MWh $ Solar Energy $ 102.42 $ 109.64 $ 115.97 $ 115.97 $ 115.97 $ 115.97 $ 115.97 $ 115.97 $ 111.70 $ 113.86 Solar REC's MWh 332.000 301.000 240.000 182.000 125.000 71.000 104.000 - 1,355.000 MWh $ Solar REC (one month lag)* 142.98 140.56 138.42 138.42 138.42 138.42 138.42 - $ - MWh $ Non-Solar Energy $ 77.09 $ 68.05 $ 61.11 $ 66.10 $ 76.67 $ 55.52 $ 70.16 $ 108.01 Note: Solar REC's are one month behind due to the time the invoice is received.

City of Dover Electric Revenue Fund FY15 - White Oak Solar Park Incremental Cost Original July August September October November December January February March April YTD Budget Power Supply & Generation Dover Sun Park - Energy $ 227,139 $ 219,981 $ 185,885 $ 140,672 $ 96,640 $ 54,849 $ 80,597 $ 111,516 $ 153,863 $ 212,274 $ 1,483,415 $ 2,067,600 Dover Sun Park - REC's 47,469 42,307 33,221 25,192 17,303 9,828 14,396 19,932 27,546 - 237,194 378,600 Total Power Supply Cost 274,609 262,288 219,105 165,864 113,943 64,677 94,993 131,448 181,409 212,274 1,720,608 2,446,200 Non-Solar Power Supply Cost (170,970) (136,533) (97,948) (80,182) (63,893) (26,259) (48,763) (103,555) (70,973) (115,153) (914,229) (1,131,760) Incremental Energy Cost $ 103,639 $ 125,755 $ 121,157 $ 85,682 $ 50,050 $ 38,418 $ 46,229 $ 27,894 $ 110,436 $ 97,121 $ 806,380 $ 1,314,440 Revenues Customer Sales - Electricity (9,870) (8,024) (7,893) (7,840) (8,061) (8,135) (8,448) (8,367) (8,186) (7,849) (82,673) (84,600) Rent Receipts (14,807) - - (14,807) - - (15,177) - - - (44,792) (101,400) Total Revenues (24,677) (8,024) (7,893) (22,647) (8,061) (8,135) (23,625) (8,367) (8,186) (7,849) (127,464) (186,000) Incremental Sun Park Cost $ 78,962 $ 117,731 $ 113,264 $ 63,034 $ 41,989 $ 30,283 $ 22,604 $ 19,527 $ 102,250 $ 89,272 $ 678,915 $ 1,128,440 MWh Purchased/Generated - Solar 2,217.724 2,006.392 1,602.868 1,213.000 833.320 472.956 694.980 961.592 1,326.748 1,830.424 13,160.004 18,159.000 MWh $ Solar Energy $ 102.42 $ 109.64 $ 115.97 $ 115.97 $ 115.97 $ 115.97 $ 115.97 $ 115.97 $ 115.97 $ 115.97 $ 112.72 $ 113.86 Solar REC's MWh 332.000 301.000 240.000 182.000 125.000 71.000 104.000 144.000 199.000 - 1,698.000 MWh $ Solar REC (one month lag)* 142.98 140.56 138.42 138.42 138.42 138.42 138.42 138.42 138.42 - $ - MWh $ Non-Solar Energy $ 77.09 $ 68.05 $ 61.11 $ 66.10 $ 76.67 $ 55.52 $ 70.16 $ 107.69 $ 53.49 $ 62.91 Note: Solar REC's are one month behind due to the time the invoice is received.