Attachment

UTILITY COMMITTEE AGENDA AUGUST 11, 2014 - 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. Evaluation of Proposals and Proposed Budget Amendment - Unit 3 Cooling Tower (Staff recommends the acceptance of the revised CIP and awarding the contract for the McKee Run Unit 3 Cooling Tower Repairs (Project # EG1402) to Evaptech in the amount of $951,000) 2. Quarterly Review of Utility Related Capital Investment Plan (CIP) (Electric and Water/Wastewater) (April, May, and June) (Committee action not required) 3. TEA/NAES Reports (May and June) (Staff recommends acceptance of the reports) 4. 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 D. Progress Update on Purchase Power Agreement 5. Adjournment by 5:25 p.m. /tm S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Committee-Agendas\2014\08-11-2014 UTILITY.wpd THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS.

ACTION FORM PROCEEDING: Utility Committee DEPARTMENT OF ORIGIN: Electric - Power Plant (NAES) DATE SUBMITTED: 08/06/2014 PREPARED BY: Vincent Scire, Plant Manager SUBJECT: Evaluation of Bids - McKee Run Unit 3 Cooling Tower Repairs (Project # EG1402) REFERENCE: N/A RELATED PROJECT: N/A REVIEWED BY: Scott D. Koenig, P.E., City Manager; Donna Mitchell, Controller EXHIBITS: Exhibit A – PowerPoint; Exhibit B – Original CIP Sheet; Exhibit C – Revised CIP Sheet to Accelerate EG1402 EXPENDITURE REQUIRED: $951,000 AMOUNT BUDGETED: FY 15 $1,123,000. FUNDING SOURCE (Dept./Page in CIP & Budget): Public Utilities- Electric Generation , McKee Run Unit 3 Cooling Tower Repairs, CIP EG1402; Overall Project Budget FY 14 &FY15 $1,156,000. TIMETABLE: This work is scheduled to be completed in the fall of 2014 during a planned outage on Unit 3. Contract to be awarded upon Council approval. RECOMMENDED ACTION: Staff recommends the acceptance of the revised CIP and awarding the contract for the McKee Run Unit 3 Cooling Tower Repairs (Project # EG1402) to Evaptech in the amount of $951,000 as detailed in their proposal. BACKGROUND AND ANALYSIS The original project and budget as placed in the Draft FY-2015 Operating and Capital budget was as detailed in Exhibit B with a multi-year project budget of $1,289,000. This Project is intended to replace the fill and fill support structures on the McKee Run Unit 3 cooling tower. Also included is the replacement of the hot water basin floor and miscellaneous structural members within the tower. This contract work represents the majority of work to be performed on this project. A Request for Proposal package was advertised according to the City purchasing policy and NAES purchasing policy. A mandatory pre-bid meeting was held and five (5) potential respondents attended this meeting. Proposals were received from four (4) vendors and one (1) vendor declined to submit. Of the submissions received, one (1) proposal was incomplete and judged to be non- conforming. The proposals were evaluated using cost, experience, and bid completeness. Two (2) vendors had equal evaluated scores; however, of those two (2) vendors, Evaptech had the lowest price. Below is a summary of the evaluation scores and pricing: Evaluation Score Price including all Contractor (out of a possible 5.00) Vendor Base Price adjustments Evaptech 4.3 $938,280 $951,000 Cooling Tower Depot 4.3 $1,005,330 $1,009,000 Midwest Tower 3.5 $1,161,594 $1,132,000 SPX Non-conforming Non-conforming Non-conforming As indicated in the PowerPoint presentation, the City has an opportunity to accelerate the project and complete Phases I (FY-2015) & II (FY-2016) in FY-2015 during our fall 2014 outage. If the project is accelerated as proposed, there will be an overall budget savings of approximately $80,000. The following chart proposes a re-prioritization of the FY-2015 Capital Projects at the McKee Run Power Plant to allow this project to be completed in FY-2015:

Staff recommends the acceptance of the revised CIP and awarding the contract for the McKee Run Unit 3 Cooling Tower Repairs (Project # EG1402) to Evaptech in the amount of $951,000 as detailed in their proposal.

City of Dover Capital Investment Plan Project Tracking Report Quarterly Report as of June 30, 2014 PRELIMINARY Points to Remember - * Original Project Budget = Original Total Project Budget initially included in approved annual budget. * Latest Project Budget = Revised Total Project Budget included in most recent approved annual budget or one of the following: bond resolution, revolving fund loan agreement, Council approved budget amendment, or City Manager approved amendment as per the Budget Amendment Procedure. * Current Fiscal Year - Revised Fiscal Year Budget = Current Year approved project budgets plus carry forward balances of unspent budgets in the prior fiscal year. Project Carry Forward balances will be submitted to City Council for amendment in January 2010. Can also be amended with City Manager approval per the Budget Amendment Procedure. * Water Quality, Inflow/Infiltration, Distribution Upgrades and New Development projects are budgeted as a blanket project and once individual projects are identified and estimated they are created using an allocation of the overall budgeted amount. * Status and Comments provided by City Manager. * For Finance purposes projects are considered completed when placed in service and all charges have been processed. Community Water & Total Current Year Budget Funding Sources General Transportation Wastewater Electric CIP Budget Balance $ 2,941,200 $ 130,300 $ 5,199,600 $ 506,300 $ 8,777,400 Restricted MSA (non Public Safety) 251,200 - - - 251,200 Contractor Contributions 264,800 - - - 264,800 General Billings for Reimbursement of Expense - - - 440,000 440,000 Debt Financing - - 4,195,900 - 4,195,900 Other State/Federal Grants 165,000 - - - 165,000 Impact Fee Reserves - - - - - State Community Transportation Funds 60,500 1,387,600 - - 1,448,100 Gifts/Donations 5,000 - - - 5,000 Transfer from Impact Fee Reserve - - 1,000,000 - 1,000,000 Transfer from General Fund 1,448,800 - - 1,448,800 Transfer from Operating Funds - - 2,563,200 4,918,600 7,481,800 Transfer from Parkland Reserve 80,000 - - - 80,000 Interest Income - 500 25,000 25,200 50,700 Total Funding Sources (Unaudited) $ 5,216,500 $ 1,518,400 $ 12,983,700 $ 5,890,100 $ 25,608,700

City of Dover General Fund - Major CIP Projects Quarterly Report as of June 30, 2014 PRELIMINARY TOTAL PROJECT - PAST, CURRENT & FUTURE BUDGETS CURRENT FISCAL YEAR Original Latest Project Project Current Revised Fiscal Project Project Project To Date Budget % Budget Fiscal Year Fiscal Year YTD Budget % Budget Code Type Description Budget Budget Expenses Balance Spent Budget Budget Expenses Balance Spent Status Comments 1 FY 2009 2 LB0901 M/G/L New Library Project $ 18,200,000 $ 20,469,100 $ 20,452,235 $ 16,865 99.9% $ - $ 411,500 $ 78,136 $ 333,364 19.0% Complete LEED Certification complete in FY 2014 3 Totals - FY 2009 $ 18,200,000 $ 20,469,100 $ 20,452,235 $ 16,865 99.9% $ - $ 411,500 $ 78,136 $ 333,364 19.0% 4 5 FY 2013 MR1301 Security Cameras (Mayor) $ - $ 54,200 $ 54,160 $ 40 99.9% Asbestos survey done of building; Future 6 PR1301 Roof Replacement @ Dover Park 30,000 $ 30,000 $ 6,995 $ 23,005 23.3% - - - - 0.0% On Hold plans for building being evaluated 7 ST1302 Street & Alley Program - 1,414,500 - 1,414,500 0.0% - - - - 0.0% FY 2014 Moved to General Capital Projects Fund 8 ST1304 Garrison Farm Improvements 1,924,000 2,000,000 295,192 1,704,808 14.8% - 231,300 231,255 45 100.0% In process Financed by Future Capacity Reserve 9 ST1405 G FY 2012 MSA - Capital non-safety - 265,215 190,176 75,039 71.7% - 251,200 176,213 74,987 70.1% In process Restricted MSA Funding 10 11 Totals - FY 2013 $ 1,954,000 $ 3,709,715 $ 492,363 $ 3,217,352 13.3% $ - $ 536,700 $ 461,628 $ 75,072 86.0% 12 13 FY 2014 14 --- Vehicles & Equipment $ 963,800 $ 1,003,200 $ 903,078 $ 100,122 90.0% $ 908,800 $ 1,003,200 $ 903,078 $ 100,122 90.0% In process ST1304 Unallocated - 1,704,800 - 1,704,800 0.0% - 1,704,800 - 1,704,800 0.0% 15 CS1402 Security Cameras/Fence 55,000 55,000 - 55,000 0.0% 55,000 55,000 - 55,000 0.0% 16 FR1400 Annual Contribution to Robbins Hose 238,500 238,500 238,515 (15) 100.0% 238,500 238,500 238,515 (15) 100.0% Complete Truck Payments 17 IT1400 Server & Backup Solution 7,000 7,000 - 7,000 0.0% 7,000 7,000 - 7,000 0.0% 18 PD1401 Copier Replacement 10,000 9,100 8,865 235 97.4% 10,000 9,100 8,865 235 97.4% In process 19 PD1402 Totaled Vehicle Replacement 20,000 - - - 0.0% 20,000 - - - 0.0% Cancelled 20 PR1401 A/C System @ Pitts Center 65,000 65,000 - 65,000 0.0% 65,000 65,000 - 65,000 0.0% 21 PR1402 Schutte Park Land Improvement 30,000 36,500 1,424 35,076 3.9% 30,000 36,500 1,424 35,076 3.9% 22 PR1403 Demolition @ White Oak Park - 70,500 4,404 66,096 6.2% - 70,500 4,404 66,096 6.2% 23 ST1402 FY 2014 Concrete Program 70,000 45,500 3,235 42,265 7.1% 70,000 45,500 3,235 42,265 7.1% In process Bids going out in February 24 ST1403 B/L FY 2014 Bonded Street Program 740,000 692,100 501,708 190,392 72.5% - 692,100 501,708 190,392 72.5% In process Approximately 70% complete 25 PD1302 Police Parking Lot 50,000 51,800 - 51,800 0.0% - 51,800 - 51,800 0.0% 26 ST1404 Village of Westover IV 264,800 264,800 135,431 129,369 51.1% - 264,800 135,431 129,369 51.1% 27 ST1406 Wesley College Infrastructure Reimb 24,500 24,500 24,500 0.0% - 24,500 24,500 - 100.0% 28 29 Totals - FY 2014 $ 2,538,600 $ 4,268,300 $ 1,796,661 $ 2,471,639 42.1% $ 1,404,300 $ 4,268,300 $ 1,821,161 $ 2,447,139 42.7% 30 31 32 Grand Totals $ 22,692,600 $ 28,447,115 $ 22,741,259 $ 5,705,856 79.9% $ 1,404,300 $ 5,216,500 $ 2,360,925 $ 2,855,575 45.3% Legend M = Multi-year project - a project with a specific schedule to occur over multiple years. R = Recurring project - a project that begins and ends each fiscal year and is re-budgeted to start over each fiscal year. G = Grant funded project B/L = To be financed through bonds or commercial loan.

City of Dover Community Transportation & General Fund Street Funds - Major CIP Projects (Final) Quarterly Report as of June 30, 2014 PRELIMINARY TOTAL PROJECT - PAST, CURRENT & FUTURE BUDGETS CURRENT FISCAL YEAR Original Latest Project Project Current Revised Fiscal Project Project Project To Date Budget % Budget Fiscal Year Fiscal Year YTD Budget % Budget Code Type Description Budget Budget Expenses Balance Spent Budget Budget Expenses Balance Spent Status Comments 1 FY 2002 2 CT0212 South Street paving $ 80,400 $ 80,400 $ 42,198 $ 38,202 52.5% $ - $ 80,400 $ 42,198 $ 38,202 52.5% Complete 3 Totals - FY 2002 $ 80,400 $ 80,400 $ 42,198 $ 38,202 52.5% $ - $ 80,400 $ 42,198 $ 38,202 52.5% 4 5 FY 2009 6 CT0555 Little League Park paving $ 11,600 $ 11,600 $ - $ 11,600 0.0% $ - $ - $ - $ - 0.0% Re-program for signage 7 Totals - FY 2009 $ 11,600 $ 11,600 $ - $ 11,600 0.0% $ - $ - $ - $ - 0.0% 8 9 FY 2007 10 CT0708 E. Water Street Brick $ 65,000 $ 65,000 $ - $ 65,000 0.0% $ - $ - $ - $ - 0.0% Specialty contract needed 11 Totals - FY 2007 $ 65,000 $ 65,000 $ - $ 65,000 0.0% $ - $ - $ - $ - 0.0% 12 13 FY 2009 Trying to re-program for Schutte 14 CT0977 M Schutte Parking Lot $ 22,000 $ 22,000 $ - $ 22,000 0.0% $ - $ - $ - $ - 0.0% park sidewalk 15 Totals - FY 2009 $ 22,000 $ 22,000 $ - $ 22,000 0.0% $ - $ - $ - $ - 0.0% 16 17 FY 2012 18 CT1201 M North Street Roundabout $ 500,000 $ 572,200 $ 554,365 $ 17,835 96.9% $ - $ 572,200 $ 554,365 $ 17,835 96.9% 35% Site work initiated 19 TE0601 M Lincoln Park Center 900,000 1,423,500 523,277 900,223 36.8% - - - - 0.0% Started On-going 20 Totals - FY 2012 $ 1,400,000 $ 1,995,700 $ 1,077,642 $ 918,058 54.0% $ - $ 572,200 $ 554,365 $ 17,835 96.9% 21 22 FY 2013 23 CT1317 Wesley College Phase I 148,600 119,240 119,240 (0) 100.0% $ - $ 79,985 $ 79,985 $ 0 100.0% Complete awaiting bill Transfer to General Fund for Security Prior year unused GF Allocation 24 MR1301 Cameras 102,400 102,400 102,440 (40) 100.0% - 54,200 54,200 - 100.0% moved to Capital Project Fund. 25 CT1369 Bayard Ave, Orchard Ave & Morris Dr. 130,000 289,378 264,670 24,708 91.5% - 289,378 264,670 24,708 91.5% FY 2013 CT agreement 26 Totals - FY 2013 $ 381,000 $ 511,018 $ 486,350 $ 24,668 95.2% $ - $ 423,563 $ 398,855 $ 24,708 94.2% 27 28 FY 2014 29 CTxxxx Unapplied CT Projects (placeholder) $ 500,000 $ 500,000 $ - $ 500,000 0.0% $ 500,000 $ 342,437 $ - $ 342,437 0.0% Future CT Agreements Operating transfer to General Fund - 60,500 6,300 54,200 0.0% - 6,300 6,300 - 100.0% 30 CT1405 Lakeview Drive 24,400 24,400 - 24,400 0.0% 24,400 24,400 - 24,400 0.0% 31 ST1401 American Ave - 69,100 62,800 6,300 90.9% - 69,100 62,800 6,300 90.9% Prior year unused GF Allocation 32 Totals - FY 2014 $ 524,400 $ 654,000 $ 69,100 $ 584,900 10.6% $ 524,400 $ 442,237 $ 69,100 $ 373,137 15.6% 33 34 Grand Totals $ 2,484,400 $ 3,339,718 $ 1,675,290 $ 1,664,428 50.2% $ 524,400 $ 1,518,400 $ 1,064,517 $ 453,883 70.1% Legend M = Multi-year project - a project with a specific schedule to occur over multiple years. R = Recurring project - a project that begins and ends each fiscal year and is re-budgeted to start over each fiscal year. C = Project funded by combination of CT Funds and General Fund B/L = To be financed through bonds or commercial loan.

Water/Wastewater Improvement & Extension Fund - Major CIP Projects Quarterly Report as of June 30, 2014 PRELIMINARY TOTAL PROJECT - PAST, CURRENT & FUTURE BUDGETS CURRENT FISCAL YEAR Original Latest Project Project % Approved Revised Fiscal % Status / Project Project Project To Date Budget Budget Fiscal Year Fiscal Year YTD Budget Budget % Code Type Description Budget Budget Expenses Balance Spent Budget Budget Expenses Balance Spent Complete Comments 1 FY 2008 2 WD0804 M 1.0 MG Elevated Water Storage $ 4,196,600 $ 2,556,000 $ 85,327 $ 2,470,673 3.3% $ 390,000 $ 2,473,500 $ 2,779 $ 2,470,721 0.1% 3.2% Design & land purchase underway 3 WD0805 M Piney Point Well 398,800 1,096,200 1,093,202 2,998 99.7% - 580,000 577,064 2,936 99.5% 85.0% Awarded bid JJID Feb. 2013 4 Totals - FY 2008 $ 4,595,400 $ 3,652,200 $ 1,178,530 $ 2,473,670 32.3% $ 390,000 $ 3,053,500 $ 579,842 $ 2,473,658 19.0% 5 6 FY 2009 7 WQ0907 SL/O Rt. 13 Water Main $ 1,023,700 $ 2,467,600 $ 2,314,772 $ 152,828 93.8% $ - $ 294,400 $ 141,577 $ 152,823 48.1% 100.0% Complete 6/30/13, in Litigation 8 9 FY 2010 10 WW1010 I Tar Ditch Interceptor Upgrade $ 518,200 $ 518,200 $ 50,082 $ 468,118 9.7% $ - $ 486,300 $ 18,110 $ 468,190 3.7% 6.2% Easement request sent to residents 11 12 FY 2013 Project awarded on 1/27, pre construction 13 WW1304 M Garrison Farm Improvements $ 1,828,000 $ 3,116,000 $ 534,880 $ 2,581,120 17.2% $ - $ 3,116,000 $ 426,718 $ 2,689,282 13.7% In Process meeting to follow. Project awarded, 95% design, construction 14 WD1302 M Garrison Farm Storage Tank 1,828,000 3,116,000 455,389 2,660,611 14.6% - 4,022,400 242,793 3,779,607 6.0% In Process to begin in Spring. Project designed, re-programmed for out 15 II1306 FY 2013 I & I Design 1,000,000 748,900 22,608 726,292 3.0% - - - - 0.0% year. 16 II1404 Basin #5 I & I Buck Drive - 342,000 39,151 302,849 11.4% - 342,000 39,151 302,849 11.4% In Process Project under design, 60% complete. 17 II1309 Dover Downs PS Upgrade - 16,000 15,864 136 99.2% - 16,000 15,864 136 99.2% Complete Completed by September 2013 18 II1310 Puncheon Run PS Upgrade - 21,000 20,020 980 95.3% - 21,000 20,020 980 95.3% Complete Completed in July 2013 19 Totals - FY 2013 $ 4,656,000 $ 7,359,900 $ 1,087,912 $ 6,271,988 31.6% $ - $ 7,517,400 $ 744,546 $ 6,772,854 9.9% 20 21 FY 2013 All vehicles have been ordered, awaiting 22 --- Vehicles & Equipment $ 354,000 $ 153,600 $ 152,390 $ 1,210 99.2% $ 354,000 $ 153,600 $ 152,390 $ 1,210 99.2% In Process delivery #422 (2/6/14) Contractor completed one wellhead 23 WD1401 Wellhead Redevelopment 75,000 75,000 71,558 3,442 95.4% 75,000 75,000 71,558 3,442 95.4% In Process redevelopment, started on second. 24 WD1403 Emergency Generators 80,000 60,000 58,468 1,532 97.4% 80,000 60,000 58,468 1,532 97.4% In Process Generator ordered, delivery late Feb. 25 WW1401 Inflow/Infiltration Removal 1,003,800 406,900 - 406,900 0.0% 1,013,800 406,900 - 406,900 0.0% In Process Buck Drive 60% designed 26 WD1402 Denny's Road Water Main - 33,200 19,700 13,500 59.3% - 33,200 19,700 13,500 59.3% In Process Design 95% complete, DelDOT to bid out 27 WD1201 I Pay-As-You-Go Water Station - 30,200 - 30,200 0.0% - 30,200 - 30,200 0.0% Staff finalizing bid documents 28 WD1304 Columbia Well - 34,800 25 34,775 0.1% - 34,800 25 34,775 0.1% no update 29 WQ1402 West Dover Connector - 11,000 11,000 0 100.0% - 11,000 11,000 0 100.0% In Process Design continuing, out to bid April 2014 30 WQ1401 Water Quality Improvements 905,000 - - - 0.0% 905,000 - - - 0.0% no update Design complete. Purchase materials in 31 WW1204 Baltray Pump Station - 104,100 6,317 97,783 6.1% - 104,100 6,317 97,783 6.1% In Process February 2014 32 WW1205 Dover Brook Pump Station - 52,800 1,435 51,365 2.7% - 52,800 1,435 51,365 2.7% Bids due April 15, 2014. 33 WW1206 Brandywine Pump Station - 368,100 2,600 365,500 0.7% - 368,100 2,600 365,500 0.7% In Process Design 95% complete, need to acquire 34 WW1207 McKee PS - 47,300 - 47,300 0.0% - 47,300 - 47,300 0.0% Need to rebid project. 35 WW1301 Hazeltville Rd Interceptor - 20,400 4,054 16,346 19.9% - 20,400 4,054 16,346 19.9% Survey to begin in coming weeks. 36 WW1302 Lakeview PS - 52,700 37,637 15,063 71.4% - 52,700 37,637 15,063 71.4% Survey to begin in coming weeks. 37 WW1303 Westover PS - 69,200 46,743 22,457 67.5% - 69,200 46,743 22,457 67.5% Survey to begin in coming weeks. 38 II1401 Kent Ave. Repair - 75,000 32,209 42,791 42.9% - 75,000 32,209 42,791 42.9% In Process 95% complete 39 II1402 West Dover Connector - 37,800 33,264 4,536 88.0% - 37,800 33,264 4,536 88.0% Design continuing, out to bid April 2014 40 Totals - FY 2014 $ 2,417,800 $ 1,632,100 $ 477,399 $ 1,154,701 0.0% $ 2,427,800 $ 1,632,100 $ 477,399 $ 1,154,701 29.3% 41 42 Grand Totals $ 13,211,100 $ 15,630,000 $ 5,108,694 $ 10,521,306 32.7% $ 2,817,800 $ 12,983,700 $ 1,961,474 $ 11,022,226 15.1% Legend M = Multi-year project - a project with a specific schedule to occur over multiple years. R = Recurring project - a project that begins and ends each fiscal year and is re-budgeted to start over each fiscal year. SL = State Loan Project - construction phase is financed I = Impact Fee (partially) financed project O = Operating revenues

Electric Improvement & Extension Fund - Major CIP Projects Quarterly Report as of June 30, 2014 PRELIMINARY TOTAL PROJECT - PAST, CURRENT & FUTURE BUDGETS CURRENT FISCAL YEAR Original Latest Project Project % Current Revised Fiscal % Project Project Project To Date Budget Budget Fiscal Year Fiscal Year YTD Budget Budget Code Type Description Budget Budget Expenses Balance Spent Budget Budget Expenses Balance Spent Status Comments 1 FY2012 2 EG1212 M Unit 3 Turbine Inspection/Repair $ 1,494,000 $ 1,653,536 $ 1,561,756 $ 91,780 94.4% $ 1,149,800 $ 1,149,800 $ 1,058,020 $ 91,780 92.0% In process Will complete Spring Outage 3 EG1214 M Industrial WW Discharge System 272,000 272,000 283,767 (11,767) 104.3% - 8,000 9,418 (1,418) 117.7% Complete Expenses are a 100% complete 4 Totals - FY 2012 $ 1,766,000 $ 1,925,536 $ 1,845,523 $ 80,013 95.8% $ 1,149,800 $ 1,157,800 $ 1,067,438 $ 90,362 92.2% 5 6 FY 2013 7 EE1308 M Horsepond Substation Upgrade $ 761,800 $ 761,800 $ 619,526 $ 142,274 81.3% $ 591,800 $ 1,301,100 $ 588,675 $ 712,425 45.2% In process Under Construction 8 EE1312 M General Scott Switchgear 1,155,000 1,150,000 17,374 1,132,626 1.5% 800,000 55,000 17,374 37,626 31.6% In process Under Design 9 EE1314 Capitol Park Upgrade - 347,872 320,423 27,449 92.1% 248,000 220,551 27,449 88.9% In process Under Construction 10 EE1330 Morris Estates 1 Upgrade - 275,000 254,047 20,953 92.4% - 32,600 11,647 20,953 35.7% In process Under Construction 11 EG1312 Generator Repairs - 4,200 - 4,200 0.0% - 4,200 - 4,200 0.0% Complete Expenses are a 100% complete 12 Totals - FY 2013 $ 1,916,800 $ 2,538,872 $ 1,211,369 $ 1,327,503 47.7% $ 1,391,800 $ 1,640,900 $ 838,247 $ 802,653 51.1% 13 14 FY 2014 15 --- Vehicles & Equipment $ 660,000 $ 704,600 $ 275,360 $ 429,240 39.1% $ 660,000 $ 704,600 $ 275,360 $ 429,240 39.1% In Process Ordered 16 EE1401 Air Condition Replacement Monitors 12,000 8,200 8,200 - 100.0% 8,200 8,200 8,200 - 100.0% 17 EE1402 Substation Battery Replacement 24,500 24,500 23,185 1,315 94.6% 24,500 24,500 23,185 1,315 94.6% In Process Under Design 18 EE1403 Distribution Upgrades 400,000 61,000 - 61,000 0.0% 400,000 61,000 - 61,000 0.0% 19 EE1404 Lighting Improvements 50,000 50,000 46,920 3,080 93.8% 50,000 50,000 46,920 3,080 93.8% In Process Under Construction 20 EE1405 Distribution Feeder Replacement Program 277,500 - - - 0.0% 277,500 - - - 0.0% 21 EE1406 Distribution Capacitors & Controls 60,000 60,000 31,484 28,516 52.5% 60,000 60,000 31,484 28,516 52.5% Complete Complete 22 EE1407 Transmission Line Maintenance Program 75,000 - - - 0.0% 75,000 - - - 0.0% 23 EE1408 Substation Switch Replacement 80,000 - - - 0.0% 80,000 - - - 0.0% 24 EE1410 Air Mobility Command - 13,500 34,174 (20,674) 253.1% - 13,500 34,174 (20,674) 253.1% In Process New Design 25 EE1411 Bergald Lane (DAFB) - 29,000 28,709 291 99.0% - 28,800 28,709 91 99.7% Complete Complete 26 EE1412 Capital City Trail - 22,700 21,448 1,252 94.5% - 22,700 21,448 1,252 94.5% Complete Complete 27 EE1413 Lebanon 400 Feeder - 20,000 18,710 1,290 93.6% - 20,000 18,710 1,290 93.6% In Process Material Ordered 28 EE1414 New Developments 600,000 93,700 89 93,611 0.1% 600,000 93,700 89 93,611 0.1% 29 EE1417 Bayside Drive (Persimmon Tree to White Oak Rd) - 42,300 38,634 3,666 91.3% - 42,300 38,634 3,666 91.3% Complete Complete 30 EE1418 The Grande - 28,000 10,068 17,932 36.0% - 28,000 10,068 17,932 36.0% Complete Complete 31 EE1419 Home 2 Suites Hotel - 37,000 38,534 (1,534) 104.1% - 37,000 38,534 (1,534) 104.1% In Process Under Construction 32 EE1421 Richardson Circle Upgrade - 91,000 89,740 1,260 98.6% - 91,000 89,740 1,260 98.6% In Process Under Construction 33 EE1423 7-Eleven New Service - 5,800 4,397 1,403 75.8% - 5,300 4,397 903 83.0% Complete Complete 34 EE1424 McKee Run Substation Repairs - 36,800 - 36,800 0.0% - 36,800 35,820 980 97.3% In Process Under Construction 35 EE1425 EZ-Pass Delaware - 12,000 9,351 2,649 77.9% - 10,800 9,351 1,449 86.6% Complete Complete 36 EE1426 Eden Hill Entrance - 52,400 44,836 7,564 85.6% - 52,400 44,836 7,564 85.6% In Process Under Construction 37 EE1428 Tidewater General Green - 34,000 17,248 16,752 50.7% - 19,600 17,248 2,352 88.0% In Process Under Construction 38 EE1429 Clearview Meadows - 88,000 4,108 83,892 4.7% - 85,300 4,108 81,192 4.8% Not Started 39 EE1430 Calpine Equipment Move - 37,600 37,521 79 99.8% - 37,600 37,521 79 99.8% Complete Complete 40 EE1431 Generals Green Lighting - 20,500 10,747 9,753 52.4% - 20,500 10,747 9,753 52.4% In Process Under Construction 41 EE1432 Connective @ 409 Pickering Beach Rd - 20,200 1,182 19,018 5.9% - 20,200 1,182 19,018 5.9% In Process Under Construction 42 EE1433 Chandale Airport - - 47,301 (47,301) 0.0% - - 47,301 (47,301) 0.0% 43 EE1434 50 Wolfcreek - Dr. Patel - 6,100 4,345 1,755 71.2% - 6,100 4,345 1,755 71.2% In Process Under Construction 44 EE1435 Patriot Village - 29,900 27,563 2,337 92.2% - 29,900 27,563 2,337 92.2% In Process Under Construction 45 EE1437 DP & L Donas Landing Road - 15,000 7,081 7,919 47.2% - 15,000 7,081 7,919 47.2% 46 EE1438 Dover Downs Tower - 53,800 - 53,800 0.0% - 53,800 - 53,800 0.0% 47 EE1439 Family Dollar Store - 9,800 - 9,800 0.0% - 9,800 - 9,800 0.0% 48 EE1440 Kraft Foods 69KV Temp - 10,000 5,739 4,261 57.4% - 10,000 5,739 4,261 57.4% 49 EE1443 GOTP Transmission Line Relocation - 550,000 - 550,000 0.0% 550,000 - 550,000 0.0% Unplanned project Will complete Spring outage - 50 EG1402 Unit 3 Cooling Tower Repairs 42,000 42,000 31,785 10,215 75.7% 42,000 42,000 31,785 10,215 75.7% In Process PO for work issued 51 EG1404 McKee Run #3 Aux System Component 116,000 116,000 113,016 2,984 97.4% 116,000 116,000 113,016 2,984 97.4% In Process Will complete Spring outage 52 EG1405 VanSant #11 Component Replacement 32,000 32,000 30,588 1,412 95.6% 32,000 32,000 30,588 1,412 95.6% In Process Will complete Spring outage Will complete Spring outage - 53 EG1406 McKee Run Energy Pipe Replacement 80,000 80,000 53,514 26,486 66.9% 80,000 80,000 53,514 26,486 66.9% In Process PO for work issued Multi-year project - Design to be 54 EG1407 Metering System Upgrades 25,000 25,000 - 25,000 0.0% 25,000 25,000 - 25,000 0.0% In Process complete Spring 55 EG1408 McKee/VanSant Safety & Compliance 86,000 86,000 22,926 63,074 26.7% 86,000 86,000 22,926 63,074 26.7% In Process Will complete in Spring 56 EG1409 McKee Run Natural Gas Valves 65,000 65,000 18,152 46,848 27.9% 65,000 65,000 18,152 46,848 27.9% In Process Will complete Spring outage Work on hold pending additional 57 EG1413 McKee/VanSant Preserve Structure 42,000 42,000 - 42,000 0.0% 42,000 42,000 - 42,000 0.0% In Process funds needed 58 EG1415 McKee Run Units 1 & 2 component Replacement 105,000 105,000 31,173 73,827 29.7% 105,000 105,000 31,173 73,827 29.7% In Process Will Complete spring outage Multi-year project - Design to be 59 EG1416 VanSant Capacity Increase 250,000 250,000 98,056 151,944 39.2% 250,000 250,000 98,056 151,944 39.2% In Process complete Spring 60 61 Totals - FY 2014 $ 3,082,000 $ 3,110,400 $ 1,285,882 $ 1,824,518 0.0% $ 3,078,200 $ 3,091,400 $ 1,321,702 $ 1,769,698 42.8% 62 63 Grand Totals $ 6,764,800 $ 7,574,808 $ 4,342,774 $ 3,232,034 26.5% $ 5,619,800 $ 5,890,100 $ 3,227,388 $ 2,662,712 54.8% Legend M = Multi-year project - a project with a specific schedule to occur over multiple years. B = Bonded Project R = Recurring project - a project that begins and ends each fiscal year and is re-budgeted to start over each fiscal year. S = State fully or partially reimbursed project

The Energy Authority, Inc. Monthly Management Committee Update – May 2014 June 26, 2014 Prepared by: Robert Trinnear Client Services Manager 904.360.1309 rtrinnear@teainc.org

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

I. Executive Summary A. Power Supply Summary: Overall Power Supply costs were $296,294 under budget due to lower hedge prices and a prior month adjustment which lowered energy costs. Dover’s budgeted cost for all power supply (capacity AND energy) was $78.90/MWh. The actual cost of all power supply (capacity AND energy) was $76.11/MWh. The cost of energy alone was $41.86/MWh, versus a budgeted energy cost of $46.64. Dover’s hedge purchases totaled 43,920 MWh, which was 77% of the actual load. The budgeted hedge purchase totaled 26,640, which was 45% of the budgeted load. Dover’s power purchases from hedge transactions totaled $2,063,766. Purchases from PJM (energy and fees) totaled $110,782. This number was lower than expected due to a prior month credit received for $242,241.. Dover’s total load was 56,893 MWh versus a forecasted load of 58,638 MWh. Dover’s planned energy purchase from the SunPark solar installation was 1,927 MWh. Dover’s actual energy purchase from the SunPark installation was 2,021 MWh. 1

Supply Source Summary: Supply Variance: Budget Actual Variance Gross Load 58,638 56,893 1,745 Wholesale Load 56,711 54,873 1,838 Hedged Volume (MWh) 26,640 43,920 (17,280) Unhedged Volume (MWh) 30,071 10,953 19,118 Dover SunPark Volume (MWh) 1,927 2,021 (94) Renewable Energy Credits Volume 289 299 (10) Hedged Cost ($/MWh) $ 55.32 $ 46.99 $ 8.33 Unhedged Energy Cost ($/MWh) $ 36.37 $ 10.11 $ 26.26 Solar Energy Cost ($/MWh) $ 87.03 $ 102.42 $ (15.39) Energy Costs ($/MWh) $46.64 $41.86 $4.79 All-in Costs - Energy, Capacity and RECs ($/MWh) $78.90 $76.11 $2.79 2

B. Generation Summary: Dover generated 1225 MWh in the month. Net generation revenue was $1,086,314 vs. a budget of $625,541. 3

Generation Breakdown: City of Dover Monthly Wholesale Generation May-14 Net Generation 1225.27 All In Generation PJM - Generation Economic and Reliability Dispatch $ 100,737.59 Generation Capacity Credit $ 1,329,125.00 Black Start and Transmission Losses $ 48,583.20 Natural Gas & Oil Consumption Purchases for Generation $ (64,691.00) Natural Gas Transport $ (10,077.95) Eastern Shore Cashout $ (27.80) Oil Consumption $ - Production Margin PJM - Generation Economic and Reliability Dispatch $ 100,737.59 Natural Gas & Oil Consumption Purchases for Generation $ (64,691.00) Natural Gas Transport $ (10,077.95) Eastern Shore Cashout $ (27.80) Oil Consumption $ - Gross Production Margin $ 25,940.84 $/MWh Generation Production Gross Margin $ 21.17 4

C. Emissions Summary: Emissions Allowance Summary through May 31st, 2014 McKee Run3 did operate during the month of May for testing, so there were additional emissions during this period. CAIR EMISSION ALLOWANCE SUMMARY SO2 NOx Allowances1 Date Action Allowances Seasonal Annual 1/1/09 2008 Carryover 3,240 0 0 1/1/09 2009 Allocation 2,723 53 80 2/1/10 2010 Allocation 2,039 50 78 1/1/11 2011 Allocation 1,988 49 78 4/1/11 2011 Reallocation 2 4 1/11/12 2012 Allocation 1,988 51 80 10/4/2012 2013 Allocation 1,988 49 76 2014 Allocation 1,988 49 76 9/29/09 SO2 Sales (1,500) 11/12/09 NOx Ann. Sales (45) 11/13/09 SO2 Sales (1,410) 11/20/09 NOx Seas. Sales (25) 12/31/09 2009 Emissions2 (1) (6) (13) 12/31/10 2010 Emissions 0 (54) (54) 10/31/10 EPA Linearity Testing Req. (68) (68) 2011 2010 Deficit NOx Purchases 53 22 Aug 2011 Revised 2010 ECMPS data 30 30 Nov 2011 NOx Seas. Sales (DEMEC) (1) 12/31/11 2011 Emissions2 (1) (32) (36) 12/31/12 2012 Emissions2 (1) (37) (37) Nov 2012 NOx Seas. Sales (DEMEC) (2) 2/13/2013 NOx Annual. Sales (DEMEC) (3) 11/15/13 NOx Annual Sales (DEMEC) (5) 12/31/13 C.Y.T.D. 2013 Emissions (0) (20) (20) 5/31/14 2014 YTD Emissions (1) 3 (11) REMAINING ALLOWANCES 13,040 97 238 On August 21, 2012, a three-judge panel of the U.S. District Court of Appeals (DCA) in Washington vacated EPA’s Cross State Air Pollution Rule (CSAPR) which would have become effective on January 1, 2012. The DCA instructed EPA to continue 1 Per CAIR, starting in 2009, NOx emissions are governed by a seasonal and annual program. 2 Under CAIR, pre-CAIR SO2 allowances are retired at a rate of 2 allowances for each ton emitted. It is assumed that pre-CAIR allowances will be retired before CAIR allowances. 5

administering the Clean Air Interstate Rule (CAIR). EPA appealed the DCA ruling to the U.S. Supreme Court, which heard arguments on December 10th, 2013. On April 29th, 2014, the U.S. Supreme Court overturned the DCA opinion; however it did not immediately reinstate CSAPR. It sent the rule back to the DCA for further action consistent with the Supreme Court’s opinion. EPA will continue to administer CAIR until the DCA takes action and EPA is able to respond. Market liquidity for CAIR allowances continues to be low, with few transactions occurring. The following table shows estimated values for Dover’s banked allowances, based on settlement prices on the Intercontinental Exchange (ICE). Mark-to-Market for CAIR Allowances Commodity $/Ton Tons Extended ICE Settlement as Value of June 24, 2014 SO2 Allowances (2009 & earlier) $ 1.35 5,089 $ 6,870 SO2 Allowances (2010-13) $ 0.85 7,951 6,758 NOx Allowances - Seasonal $25.00 97 2,425 NOx Allowances - Annual $65.00 238 12,826 TOTAL $28,879 Regional Greenhouse Gas Initiative, Pending Federal Regulations 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 has elected a combined emissions allowance allocation/auction mechanism for RGGI, in which 40% of CO2 allowances were allocated to sources for 2009, declining by 8% per year so that by 2014, all CO2 allowances are auctioned. Dover had more than a sufficient number of RGGI allowances allocated to it to cover its requirements through the first compliance period (calendar years 2009-2011). Any unused allowances are carried over (“banked”) for subsequent years. The table below shows RGGI allowance allocations, deductions and the cumulative balance by year (column 8). 6

CO2 Allowance Summary (2/28/2014) 1 2 3 4 5 6 7 8 CO2 Allowances Annual CO2 CO2 (Per Facility, Allocated Cumulative CO2 Tons CO2 Allowance Allowances Prior to Sale) CO2 Vintage Sold YTD Allowances Emitted Allowance Balance McKee Balance VanSant Run 2009 0 60,128 2,056 62,184 (5,796) 56,388 56,388 2010 0 48,102 1,645 49,747 (32,971) 16,776 73,164 2011 0 36,077 1,234 37,311 (17,763) 19,548 92,712 2012 0 27,058 925 27,983 ( 15,265) 11,793 104,505 3 2013 0 15,032 514 24,818 (10,231) 16,091 119,091 2014 0 -0- -0- -0- (6,283) 112,809 Dover no longer receives allocations of RGGI allowances. The Cumulative Balance (column 8) – aka “Banked Allowances”) can be utilized for generation in 2014 and future years. Once the banked allowances have been fully utilized, Dover will be required to purchase RGGI allowances through the auctions or through over-the-counter markets. Assuming that Dover does not sell any banked allowances, it will be able to maintain a positive balance through 2016–2025, depending on actual annual energy production in 2012 and beyond. On February 7, 2013, RGGI proposed changes to its Model Rule. The Delaware Department of Natural Resources published the final rule on December 1, 2013 the Delaware Register of Regulations with an effective date of December 11, 20134. The new RGGI rule includes a provision which eliminates some portion of banked allowances in future years. Dover could elect to sell all or a portion of its banked allowances now and re-acquire allowances at a later date; however TEA is currently of the opinion that Dover will be better off retaining its banked allowances for use during future compliance years. The most recent RGGI auction occurred on June 4, 2014; the auction cleared at $5.02/ton. The next auction will occur on June 4th, 2014. RGGI futures settlement prices posted on Intercontinental Exchange (ICE) on June 24, 2014 ranged from $4.95 to $5.26/ton, depending settlement month and vintage. Based on the June 4, 2014 ICE for 3 Includes Q3 2013 allocations of 7,846,757 for McKee Run and 1,424,677 for VanSant. 4 http://regulations.delaware.gov/register/december2013/final/17%20DE%20Reg%20644%2012-01-13.pdf 7

July, 2014, Vintage 2013 ($4.96/ton), the value of Dover’s existing 112,809 ton RGGI allowance bank is $559,533 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 SRECS. Through the end of February 2014, Dover has accumulated a total of 7,004 SRECS from these renewable energy resources. While Delaware does periodically hold auctions for SRECs, these auctions are for size tiers N1 – N3, E1 and E2. The Dover Sun Park is in the N4 tier for very large facilities. State-wide carve outs for Tier 4 has been fully subscribed, so there is not a market for tier 4 SRECs in Delaware. The nearest viable market for Dover’s SRECs is Pennsylvania. Pennsylvania’s April 15, 2014 SREC auction cleared separately for 2012/2013 through 2013/2014 vintage allowances. Clearing prices and Dover’s SREC market value estimate are shown in the table below. SREC Vintage Auction Clearing Price SREC Quantity Market Value (June 1 – May 31) $0 2010/2011 13 $ 0 (Aug-13 Auction) $ 40.01 2011/2012 2,375 95,024 (Jan 2014 Auction) $40.00 2012/2013 2,725 109,000 (April 2014 Auction) $51.00 2013/2014 2,397 122,247 (April 2014 Auction) TOTAL 7,510 $326,271 TEA continues to recommend to Dover to retain these allowances for compliance with its Renewable Portfolio Standard which DEMEC is working on. Once Dover has an approved RPS in place, it may be required to retire a portion of its current SREC balance for compliance in the 2012/13 future compliance year. Any remaining SRECs could be used for the 2013/14 compliance year. NOTE: SRECs in both Delaware and Pennsylvania expire without value after 3 years. Dover currently has thirteen (13) 2010/2011. Based on a discussion with DEMEC staff, this expiration provision is not likely to be of concern within the current compliance year. The 2011/12 vintage allowances will be the next to expire with zero market value. 8

If Dover has not accumulated adequate non-solar RECs, it will need to acquire some from DEMEC for the 2013/2014 compliance year. DEMEC has told TEA that it will likely have sufficient non-solar RECs for Dover’s requirements. Dover can purchase and retire a portion of these non-solar RECs during the current compliance and fiscal years, or it can defer acquisition until the June – August, 2014 time frame, after the exact amount of non-solar REC requirements is known. D. Operations Management Summary: During the month of May there were no reportable or lost time accidents or injuries. The facility has now gone 1,322 days without an OSHA recordable accident and 1,322 consecutive days without a lost time reportable accident. There were zero Environmental Notices of Violations issued. On May 28 a permit deviation occurred during the water wash of the VanSant Unit compressor section . The spring outages were cleared on all units on May 30. Unit 3 was test operated four(4) times after all turbine repairs were completed in order to balance the turbine rotor. In the month of May there were no units dispatched by PJM. Monthly Budget Variance – The actual expenses attributable to O&M of the two sites for the month of May were $317,335 against a budgeted amount of $707,984 for a favorable variance of $390,649 or 55.18%. The principal reasons for the favorable variance were due to having two(2) payroll periods expensed rather than the three (3) that were budgeted, and the timing of expenses budgeted in May but expensed earlier in the year. E. Risk Management Summary: Forward power prices in PJM are lower than last month. The current projected cost of service is below: Blended Cost Monthly Change PY Hedge Ratio ($/MWh) ($/MWh) 2014-15 70% $ 46.26 $ (0.32) 2015-16 56% $ 43.29 $ (0.63) 2016-17 21% $ 43.25 $ (0.31) 2017-18 12% $ 43.97 $ (1.40) 2018-19 0% $ 45.59 $ - 9

II. Budget Report Variance Report: Budget Actual Variance May-14 May-14 Gross Load 58,638 56,893 1,745 Power Supply Hedged Energy $1,473,726 $2,063,766 ($590,040) PJM - Energy, Congestion & Losses $1,093,709 110,738 $982,971 PJM - ARR, Transmission and Fees $395,000 463,292 ($68,292) Dover SUN Park Energy $167,713 $206,943 ($39,230) Dover SUN Park RECs $25,000 $42,751 ($17,751) Management Fees $83,000 $83,000 $0 PJM - Capacity UCAP Obligated Purchased $1,388,224 $ 1,359,588.08 $ 28,636 Subtotal - Power Supply $4,626,372 $4,330,078 $296,294 Power Generation O&M Plant O&M $ 707,164 $ 317,335 $ 389,829 Subtotal Generation O&M $707,164 $ 317,335 $389,829 Power Generation Production Margin PJM - Economic and reliability dispatch $0 $ (100,737.59) $100,738 Fixed Fuel and Transport Charges $0 $ 74,796.75 ($74,797) Subtotal Generation Production Margin $0 $ (25,940.84) $25,941 Power Generation Non-Production Revenue PJM - Generation Capacity Credit ($1,329,125) $ (1,329,125.00) $0 Emissions Allowance Sales $0 $ - $0 PJM - Black Start & Transmission Losses ($30,580) $ (48,583.20) $18,003 Subtotal - Non-Production Revenue ($1,359,705) ($1,377,708) $18,003 SubTotal - All Generation (652,541) ($1,086,314) $433,773 Total - Utilities Cost $3,973,831 $3,243,764 $730,067 Unit Costs Total - Power Supply $78.90 $76.11 $2.79 Total - Power Generation ($11.13) ($19.09) $7.97 Final Cost of Service to City of Dover Ratepayers $67.77 $57.01 $10.75 10

Variance Analysis: Power Supply  Dover consumed 1,745 MWh less than forecast for the month.  PJM energy costs were lower than expected due to a prior month credit received in May. PJM Fees were higher than budget.  Hedges were placed at below budget levels and he prior month adjustment offset the higher fees and solar costs. This resulted in a net power supply cost of $76.11/MWh, $2.79/MWh below budget.  For the month, the city realized a favorable variance of $296,294 for power supply vs. the monthly budget.  Dover Sun Park generated 94 MWh more than forecast. Generation  Power generation had a favorable budget variance of $433,773..  Plant O&M expenses had a favorable budget variance of $389,829 for the month. 11

YTD Variance Report: Budget Actual Variance YTD YTD Gross Load 675,637 695,743 (20,106) Power Supply Hedged Energy $22,381,070 $26,569,813 ($4,188,743) PJM - Energy, Congestion & Losses $11,177,245 $14,362,349 ($3,185,104) PJM - ARR, Transmission and Fees $4,345,000 $7,139,891 ($2,794,891) Dover SUN Park Energy $1,363,187 $1,587,484 ($224,298) Dover SUN Park RECs $275,000 $337,827 ($62,827) Management Fees $913,000 $913,000 $0 PJM - Capacity UCAP Obligated Purchased $15,001,773 $14,721,538 $280,235 Subtotal - Power Supply $55,456,274 $65,631,903 ($10,175,629) Power Generation O&M Plant O&M $5,126,069 $4,768,851 $357,218 Subtotal Generation O&M $5,126,069 $4,768,851 $357,218 Power Generation Production Margin PJM - Economic and reliability dispatch ($230,472) ($5,332,177) $5,101,706 Fixed Fuel and Transport Charges $0 $2,124,400 ($2,124,400) Subtotal Generation Production Margin ($230,472) ($3,207,777) $2,977,306 Power Generation Non-Production Revenue PJM - Generation Capacity Credit ($14,363,125) ($14,363,125) $0 Emissions Allowance Sales $0 $0 $0 PJM - Black Start & Transmission Losses ($366,380) ($1,111,094) $744,714 Subtotal - Non-Production Revenue ($14,729,505) ($15,474,219) $744,714 SubTotal - All Generation ($9,833,908) ($13,913,145) $4,079,237 Total - Utilities Cost $45,622,367 $51,718,758 ($6,096,391) Unit Costs Total - Power Supply $82.08 $94.33 ($12.25) Total - Power Generation ($14.56) ($20.00) $5.44 Final Cost of Service to City of Dover Ratepayers $67.52 $74.34 ($6.81) 12

Operations Management NAES Corporation Dover, Delaware May 2014 Monthly Report Unit 3 Turbine Rotor after Inspection, Repairs and Balancing 13

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

1.0 Environmental, Health and Safety: During the month of May, there were no restricted work days or lost time accidents. The facility has now gone 3 years and 227 days (1,322 days) through May 2014 without an OSHA Recordable Accident or a Lost Time reportable accident. There was one employee who twisted his ankle during a routine inspection and is being treated as a First Aid case. The plant received no Notice of Violations (NOVs) during the month. The May DMR was submitted for the McKee Run site with no NPDES exceedences. On May28, 2014 a permit deviation occurred during a waterwash on the VanSant compressor section of the combustion turbine. The moisture carry over (water vapor) from the water caused the CEMS to record these opacity readings. During the month of May, there were eight IWW discharges to the Kent County Sewer. Sampling occurred on May 8, 2014 and laboratory analytical data indicated no exceedences. The May SIU Report was submitted to Kent County. On May 8, 2014, Eldredge Oil removed 110 gallons of used oil and 475 gallons of oily water. In preparation for a lab pack of obsolete Laboratory chemicals, notification forms were submitted to DNREC for McKee Run and VanSant to temporarily go from a Conditional Exempt Small Quantity Generator to a Large Quantity Generator. Environmental, Health, and Safety Statistics Month Fiscal Year to Date (May) (7/1/13-6/30/14) NOVs 0 0 Opacity Deviations 1 11 Environmental Deviations 0 0 OSHA Recordable 0 0 OSHA LTA's 0 0 First Aid cases 1 1 Restricted Workday Accident 0 0 Near Miss 0 2 Man Hours Worked 4,560.5 48,303.50 Date last OSHA Recordable 10/14/10 Date last Lost Time Accident 10/14/10 Days since last OSHA recordable 1,322 Days since last Lost Time Accident 1,322 15

Emissions (NOx, CO2 & SO2) All data thru 5/31/14 NOx Summary – Ozone Season (May-Sep) Tons Year Unit #1 Unit #2 Unit #3 Unit #11 TOTAL 2011 1.8 1.5 31.4 1.4 36.1 2012 1.2 1.0 35.8 1.0 33.1 2013 1.1 1.7 19.3 1.3 23.4 2014 0.0 0.0 2.1 0.0 2.1 NOx Summary - Year (Jan-Dec) Tons Year Unit #1 Unit #2 Unit #3 Unit #11 TOTAL 2011 1.8 1.5 32.6 2.9 38.8 2012 1.2 1.1 35.8 1.0 36.9 2013 1.1 1.7 19.4 1.3 23.5 2014 0.5 0.7 9.0 3.1 13.3 SO2 Summary - Year (Jan-Dec) Tons Year Unit #1 Unit #2 Unit #3 Unit #11 TOTAL 2011 0.0 0.0 0.1 0.5 0.6 2012 0.0 0.0 0.0 0.1 0.1 2013 0.0 0.0 0.0 0.2 0.2 2014 0.0 0.0 0.4 0.6 1.0 CAIR NOx Allowances Summary* NOx Allowances CAIR CAIR NOx Available Total NOx NOx Allowance Balance CAIR NOx NOx Allowances (Per Facility, Prior to Tons Emitted Allowances Allowance Sold YTD Sale) (Yr/ Season) Purchased Vintage McKee McKee VanSant YTD VanSant Run McKee Run - Run (Yr/Season) (Yr/Season) (Yr/Season) VanSant (Yr/Season) 2010 and 3*** 27/0 0/2 earlier 2011 0 77/48 5/3 33/31– 3/1 0/0 - 0/0 42/10 2/2 2012 2** 75/46 5/3 36/36 – 1/1 0/0 - 0/0 39/10 2/0 2013 5** 77/48 5/3 19/19 – 1/1 0/0 - 0/0 58/24 4/2 2014 0 71/46 5/3 9/2 - 3/0 0/0 – 0/0 62/44 2/3 Total NOx Allowance Balance 228/88 10/9 *Note – Emissions allowances are deducted according to oldest vintage first or unless otherwise directed. **Note – The facility transferred Ozone Season allowances to a third party. SO2 Allowances Summary SO2 Allowances Available Total SO2 Tons (Per Unit, Prior to Sale & Emitted – SO2 Allowances SO2 Allowance SO2 Allowances Reconciliation) U3 and U11 Balance Vintage Sold - YTD Unit #3 Unit #11 YTD 2010 and earlier 0 4815 276 0 5089 2011 0 1850 138 1 1988* 2012 0 1850 138 1 1988* 2013 0 1850 16 138 0 1988* 2014 0 1850 138 1 1987

Total SO2 Allowance Balance 13,041 *Note – Emissions allowances are deducted according to oldest vintage first, unless otherwise directed. CO2 Allowances Summary CO2 CO2 CO2 Allowances Available Total CO2 CO2 Allowance Allowances (Per Facility, Prior to Tons Emitted Allowance Vintage Sold YTD Sale) Balance McKee Run VanSant 2009 0 60,128 2,056 5,796 56,388 2010 0 48,102 1,645 32,971 16,776 2011 0 36,077 1,234 17,763 19,548 2012 0 27,058 925 15,265 11,793 2013 0 22,879# 1,939# 10,231 14,587 2014 0 0 0 6,283 (6,283) Total CO2 Allowance Balance 112,809 *Note: CO2 allowance values are provided by the RGGI CO2 Allowance Tracking System. Note: All emissions (NOx, SO2 and CO2) totals for 2013 are unofficial. #Note: Additional CO2 Emission Values were added to 2013 balances by RGGI COATS- 7,846.757 for McKee Run and 1,424.677 for VanSant 17

2.0 Financial Financial – Current Month Month – May Actual Budget Variance Personnel 253,600 449,510 195,910 Materials & Supplies 7,028 19,135 12,107 Administrative Expenses 56,707 239,339 182,632 Total $317,335 $707,984 $390,649 Financial – Fiscal Year to Date Number of Months – 11 Actual Budget Variance Personnel 2,722,814 3,156,720 433,906 Materials & Supplies 171,870 215,410 43,540 Administrative Expenses 1,694,203 1,754,139 59,936 Total $4,588,887 $5,126,269 $537,382 2.1 Variance analysis: The actual expenses for the month of May are $317,335 against a budgeted amount of $707,984 for a favorable variance of $390,649 or 55.18%. The variance was due to the following: PERSONNEL EXPENSES – A favorable monthly variance of $195,910 was due to having only two (2) payroll periods expensed versus the three (3) that were budgeted for May. As a result, this impacted three labor accounts – straight time, overtime, and labor burdens. It is expected that three (3) payrolls will be expensed in June thereby creating an unfavorable variance for the month of June. MATERIALS AND SUPPLIES EXPENSES- A favorable monthly variance of $12,107 was due to the timing of the water – sewer invoices. There were two (2) months invoiced during the billing period for April. In addition, there were budgeted roof repairs that were not completed in May due to scheduling conflicts and inclement weather. ADMINISTRATIVE EXPENSES – A favorable monthly variance of $182,632 due to the timing of electricity monthly invoices and early completion and invoicing for: the FAC-HEP inspections; Appendix E emissions testing (Units 2 and 11); air compressor maintenance kits that were originally budgeted in May. The forecasted expenses for this fiscal year are $5,781,740 expensed versus an approved budget of $6,015,800 thereby realizing a 96.11% expenditure rate. 18

3.0 Operations Unit Operations / Outages / Trips: The spring outage for all units was cleared on May 30 at 0700 hours. Unit 3 was operated for testing four (4) times in the month of May to try to balance the turbine generator after repairs had been made to the unit during the overhaul. A waterwash of the compressor section on Unit 11 was performed on May 28 in preparation of the summer run season. Month May 2014 McKee McKee McKee MRS VanSant Total Unit 1 Unit 2 Unit 3 Facility Unit 11 All Units Capacity MW 17 17 102 136 39 175 On Line Hours Hrs 0.0 0.0 25.082 25.082 0.0 25.082 Starts # 0 0 4 4 0 4 Gross Generation MWh 0.0 0.0 1,353.089 1,353.089 0.0 1,353.089 Net Generation MWh 0.0 0.0 1,234.234 1,234.234 0.0 1,234.234 Total Auxiliaries MWh 0.0 0.0 358.613 358.613 0.0 358.613 Auxiliaries purchased MWh 16.506 16.506 239.758 272.769 1.883 274.652 Fuel Gas Used MMBTU 0.0 0.0 15,920.717 15,920.717 97.336 16,018.053 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 15,920.717 15,920.717 97.336 16,018.053 Net Heat Rate BTU/KWh 0.0 0.0 12.899 12.899 0.0 12.899 Unit Trips # 0.0 0.0 0.0 0.0 0.0 0.0 Capacity Factor % 0.0 0.0 1.63 1.22 0.00 0.96 Availability Factor % 5.51 5.51 8.88 6.63 5.51 6.35 Commercial % 0 0 0 0 0 0 Unavailability (CU) Planned Outage Hours Hours 703.00 703.00 703.00 2,109.00 703.00 2,812.00 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 41.000 41.000 41.000 123.000 41.000 164.000 Hours HW Boiler Gas Usage MMBTU 0.0 0.0 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. 19

2013-2014 Fiscal Year-to-Date - May McKee McKee McKee MRS VanSant Total Unit 1 Unit 2 Unit 3 Facility Unit 11 All Units Capacity MW 17 17 102 136 39 175 On Line Hours Hrs 135.697 214.032 312.855 662.584 75.655 738.239 Starts # 7 7 24 38 20 58 Gross Generation MWh 959.877 1,413.560 18,928.674 21,302.111 2,615.094 23,917.205 Net Generation MWh 895.980 1,309.804 17,319.621 19,525.405 2,613.006 22,138.411 Total Auxiliaries MWh 375.053 480.010 3,672.486 4,527.549 42.850 4,570.399 Auxiliaries purchased MWh 353.779 396.309 2,063.877 2,813.965 40.033 2,853.998 Fuel Gas Used MMBTU 8,924.901 15,004.575 176,486.689 200,416.165 19,682.155 220,098.320 Fuel Oil Used MMBTU 5,504.840 4,463.354 36,178.243 46,146.437 15,380.547 61,526.984 Fuel Oil Used Gallons 38,567 31,228 252,473 322,268 108,053 430,321 Total Fuel MMBTU 14,429.741 19,467.929 212,664.932 246.562.602 35,062.702 281,625.304 Net Heat Rate BTU/KWh 15.641 14.141 12.899 14.227 13.198 13.913 Unit Trips # 1 1 0 2 5 7 Capacity Factor % 0.66 0.96 2.11 1.79 0.83 1.57 Availability Factor % 55.72 56.72 56.72 56.38 56.72 56.47 Commercial % 0.95 0.04 0.01 0.13 0.0 0.10 Unavailability (CU) Planned Outage Hours Hours 3,480.00 3,480.00 3,480.00 10,440.00 3,480.00 13,920.00 Maintenance Outage Hours 0.0 0.0 0.0 0.0 0.0 0.0 Hours Forced Outage Hours Hours 80.000 0.0 0.0 80.000 0.0 80.000 Reserve Shutdown Hours 4,344.303 4,309.968 4,299.555 12,953.826 4,484.345 17,438.171 Hours HW Boiler Gas Usage MMBTU 6,203.127 6,203.127 Pilot Gas Usage MMBTU 2,375.134 4,694.627 7,069.761 7,069.761 Fuel Oil Inventory Monthly Monthly Fuel Monthly FY 13-14 Fuel FY 13-14 Inventory Inventory Purchases Inventory Inventory Purchases Inventory (Start) (End) (Month) (Change) (Start) (FYTD) (Change) McKee Run (#2 Fuel Oil) 462,656 464,419 0 1,763 454,725 378,003 9,694 VanSant 72,814 73,235 0 421 146,133 35,000 (72,898) (#2 Fuel Oil) Note: As measured by tank level instruments. Tank levels may change due to oil temperature. VanSant Lifetime through May 2014 Actual Starts Factored Starts Fired Hours VanSant 1351 2313.75 4,306.80 Since HGP - Dec 2004 258 646.05 923.22 20

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 and maintenance tasks. The Operations staff has also supported the outage by performing various LOTO 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 necessary skills to successfully complete the task. The Operations Department continues to utilize the Day Shift Workers in both the Operations and Maintenance areas to help in maintaining the plant. Capacity Testing – FY 2013-2014 Summer 2013 (June 1- Aug 31) Winter 2013-2014 (Dec 1- Feb 28) Unit Rated Net Reported Net Unit Rated Net Reported Net Capability (MW) Capability (MW) Capability (MW) Capability (MW) 1 17 17.2 1 17 17.5 2 17 17.8 2 17 18.2 3 102 103.0 3 102 104.4 11 39 40.9# 11 39 44.05# Total 175 178.9 Total 175 184.1 Note: * Denotes Unit is qualified for the PJM Winter Demonstration Period Exemption Program and data has been submitted into the PJM eGADS Note: # Depicts Net Corrected Capacity for Ambient Air Conditions – VanSant Unit only 21

4.0 Maintenance During the month of May, the Plant Maintenance staff continued addressing the backlog of work orders. There were forty-eight work orders issued with sixty-one work orders being completed during the month. No safety work orders were entered into the plant’s Computerized Maintenance Management System (MP2) during the month. The table below summarizes the monthly work order activities. Work Order Report May - 2014 Outstanding From Outstanding Previous Issued This Completed at the end of Priority # Month Month This Month the month 1 17 2 3 16 2 76 10 25 61 3 41 4 4 41 4 5 0 0 5 5 14 0 0 14 SW1 0 0 0 0 SW2 0 0 0 0 SW3 0 0 0 0 SW4 0 0 0 0 SW5 0 0 0 0 PM 80 32 29 83 EM 0 0 0 0 Totals 233 48 61 220 Note: PM Work Orders are included in the priority totals Notable activities during the month include: NAES IC&E & Operations Staff completed a successful waterwash on the VanSant combustion turbine. During the evolution the IC&E technicians were able to ensure that all of the calibrations that were made during the outage enabled the unit to operator properly. There were no issues with the water wash or the checking out of equipment although there was an opacity deviation when the water vapor was sensed on the Continuous Opacity Monitoring System (COMS). NAES Maintenance Staff assisted the turbine contractor and the vibration engineer during the turbine run up testing. The staff opened up different areas of the turbine in order to install weights on the turbine in locations specified by the vibration engineer. NAES IC&E Staff removed and replaced the plant inverter which had failed several months ago. The new inverter has more load carrying capacity that will aid in plant operations. The IC&E technicians and the OEM field engineer started the unit up and completed the startup procedures. There were no issues during the startup. 22

5.0 Capital Improvement Projects (CIP) Project Description Update Number Progress: Cooling Tower decking is 100% complete. Inspection was conducted in March as a precursor for CIP work scope development next FY. Unit #3 Cooling Schedule: Inspection work completed and work scope is being EG1402 modified to reflect deficiencies found during inspection. Bids Tower Repairs requested and bid meeting held for fill replacement. Bids on project were received and now undergoing evaluation. All bids higher than expected. McKee Run Progress: All work planned is now complete. Auxiliary Schedule: Project closeout left to complete EG1404 Component Replacement VanSant Station Progress: All work planned is now complete EG1405 Component Schedule: Project closeout left to complete Replacement Progress: The recently completed hanger adjustments will need to be checked with the unit in the hot (running) position. Expected McKee Run HEP EG1406 June operations should provide an opportunity to do so. Pipe Repairs Schedule: Planning is underway to develop work scope to change out the section of pipe scheduled for the fall of 2014. Progress: Work scope is still being developed for an RFP. Metering System Schedule: Work activities are moving forward. Working with EG1407 Upgrades vendor to finalize RFP documents for release in late June or July period. Progress: With engineering support, work scopes are being McKee developed for RFP(s) to be put out in July period. Will need to go EG1408 Run/VanSant Safety out for bids once complete. Compliance Items Schedule: Work activities are behind due to Fall and Spring Outage activities. McKee Run Natural Progress: All work planned is now complete EG1409 Gas Block-Bleed Schedule: Final invoice payment and Project closeout left to Valves complete. McKee Progress: Plant staff completed development of paint specifications EG1413 Run/VanSant and bid requests were received. Structural Schedule: Bids were received in early September. Work put on hold 23

Preservation due to budget restraints. Bid updates to be requested for Fiscal 2015 installation. Progress: All work planned is now complete. Viable suppliers for the damaged rotor expansion instrumentation are still being researched. This equipment is obsolete and will be replaced with current technology. Replacement of other turbine supervisory Unit 3 Turbine EG1212 instrumentation will also be investigated. High vibration Repairs experienced during hot starts will require an additional balancing during the upcoming fall outage. Schedule: Outage cleared on May 30. We are pursuing the replacement rotor expansion instrumentation on a rush basis. Progress: Cost to be incurred due to repairs on Unit 1 Boiler and McKee Run Units turbine were completed in November. EG1415 #1-#2 Component Schedule: Other scope activities cancelled due to the announcement Repairs to stop operation of Units 1 and 2 in 2017. Progress: Submitted permit application to DNEC in March and currently discussing possible permit limitation. Constructions Bids were returned, evaluated and a recommendation provided to TEA and to the COD. Award of bid was approved by COD City Council VanSant Capacity EG1416 in May. Increase Schedule: Award of Construction vendor approved in May. Planning in progress with vendor for construction drawings and scheduling. Continuing to work with DNREC on Construction permit language and limits going forward. 6.0 General Plant Information Gary Shisler, Operator II-1, completed his probation period on May 4, 2014 and is continuing add to his plant knowledge. Training: 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 “Propane Grill Safety”. 24

Calendar of Events Date EIA-860 Report TBD EIA-923 Report TBD NPDES Permit Expires (DNREC has Extended) March 4, 2014 (TBD) Units 1, 2, and 3 Spring Outage March 3, 2014 – May 30, 2014 Unit 11 Spring Outage March 3, 2014 – May 30, 2014 Annual VanSant Black Start Test TBD NOx Ozone Season Starts May 1, 2014 PJM Summer Capacity Test Period June 1, 2014 – August 31, 2014 FY 2013-2014 Budget Year Ends June 30, 2014 Toxic Release Inventory (TRI) Annual Report July 1, 2014 Semi-Annual Title V Certification Due July 31, 2014 NOx Ozone Season Ends September 30, 2014 Units 1, 2, 3 and 11 Fall Outage October 1, 2014 Four Year Accident Free October 14, 2014 Winter Capacity Period December 1, 2014 to February 28, 2015 NOx Emissions Reconciliation Due March 1, 2015 SO2 Emissions Reconciliation Due March 1, 2015 SARA III / Tier II Report Due March 1, 2015 Air Emission Inventory April 30, 2015 7.0 Summary of NAES Performance to Date Plant Performance FY 2013-2014 Measure Month Year to Date YTD FY Maximum Incentive Incentive Commercial 0.0% 0.10% $91,087 $94,882 Unavailability (CU) Safety 0 0 $17,790 $17,790 Environmental 0 0 $17,790 $17,790 Capacity Tests Summer Winter Summer Winter Completed Unit 1 No No Yes Yes $3,559 $3,559 Unit 2 No No Yes Yes $3,559 $3,559 Unit 3 No No Yes Yes $21,349 $21,349 Unit 11 No No Yes Yes $7,117 $7,117 Total YTD 97.71% Total YTD Incentive $162,249 $166,045 Incentive % Note: All units successfully completed the Summer and Winter Capacity (FY 2013-2104) Testing for PJM. 25

III. Appendix 1 – PJM Invoice Breakdown Gen Load Grand Total 480-8102-592-95-49 Capacity Resource Deficiency $ (4,132.92) $ (4,132.92) Capacity Transfer Rights $ (19,233.33) $ (19,233.33) Incremental Capacity Transfer Rights $ (1,687.33) $ (1,687.33) Locational Reliability $ 1,384,641.66 $ 1,384,641.66 480-8102-592-95-49 Total $ 1,359,588.08 $ 1,359,588.08 480-8102-592-95-50 RPM Auction $ (1,329,125.00) $ (1,329,125.00) 480-8102-592-95-50 Total $ (1,329,125.00) $ (1,329,125.00) 480-8102-592-95-90 Auction Revenue Rights $ (26,678.60) $ (26,678.60) Balancing Operating Reserve $ 15,649.12 $ 15,649.12 Balancing Operating Reserve for Load Response $ 58.07 $ 58.07 Black Start Service $ 1,859.66 $ 1,859.66 CT Lost Opportunity Cost Allocation $ (17.36) $ (17.36) Day-Ahead Load Response Charge Allocation $ 705.78 $ 705.78 Day-ahead Operating Reserve $ 6,569.79 $ 6,569.79 Day-ahead Operating Reserve for Load Response $ (787.67) $ (787.67) Day-ahead Scheduling Reserve $ 7.24 $ 7.24 Demand Resource and ILR Compliance Penalty $ (1,993.92) $ (1,993.92) Expansion Cost Recovery $ 408.27 $ 408.27 FERC Annual Recovery $ 3,914.98 $ 3,914.98 Generation Deactivation Refund $ (732.02) $ (732.02) Load Management Test Failure $ (44.33) $ (44.33) Load Reconciliation for Transmission Losses $ 2,406.00 $ 2,406.00 Market Monitoring Unit (MMU) Funding $ 228.71 $ 228.71 Michigan - Ontario Interface Phase Angle Regulators $ 182.05 $ 182.05 Network Integration Transmission Service $ 326,717.68 $ 326,717.68 Non-Firm Point-to-Point Transmission Service $ (327.80) $ (327.80) Non-Synchronized Reserve $ 1,167.67 $ 1,167.67 North American Electric Reliability Corporation (NERC) $ 596.74 $ 596.74 Organization of PJM States, Inc. (OPSI) Funding $ 39.05 $ 39.05 PJM Scheduling, System Control and Dispatch Service - Advanced Second Control Center $ 1,456.00 $ 1,456.00 PJM Scheduling, System Control and Dispatch Service - Capacity Resource/Obligation Mgmt. $ 943.95 $ 943.95 PJM Scheduling, System Control and Dispatch Service - Control Area Administration $ 9,436.12 $ 9,436.12 PJM Scheduling, System Control and Dispatch Service - Market Support $ 2,205.55 $ 2,205.55 PJM Scheduling, System Control and Dispatch Service - Market Support Offset $ (166.67) $ (166.67) PJM Scheduling, System Control and Dispatch Service - Regulation Market Administration $ 85.07 $ 85.07 PJM Scheduling, System Control and Dispatch Service Refund - Capacity Resource/Obligation Mgmt. $ (29.45) $ (29.45) PJM Scheduling, System Control and Dispatch Service Refund - Control Area Administration $ (298.41) $ (298.41) PJM Scheduling, System Control and Dispatch Service Refund - Market Support $ (73.41) $ (73.41) PJM Scheduling, System Control and Dispatch Service Refund - Regulation Market Administration $ (3.82) $ (3.82) PJM Settlement, Inc. $ 166.67 $ 166.67 Reactive Services $ 92,216.76 $ 92,216.76 Reactive Supply and Voltage Control from Generation and Other Sources Service $ 35,854.40 $ 35,854.40 Real-Time Load Response Charge Allocation $ 292.85 $ 292.85 Regulation and Frequency Response Service $ 17,959.80 $ 17,959.80 Reliability First Corporation (RFC) $ 847.69 $ 847.69 Synchronized Reserve $ (41,685.83) $ (41,685.83) Synchronous Condensing $ 39.45 $ 39.45 Transmission Enhancement $ 9,972.34 $ 9,972.34 Transmission Owner Scheduling, System Control and Dispatch Service $ 4,143.63 $ 4,143.63 480-8102-592-95-90 Total $ 463,291.80 $ 463,291.80 480-8102-592-95-91 Balancing Spot Market Energy $ (100,354.59) $ (100,354.59) Balancing Transmission Congestion $ 8,479.09 $ 8,479.09 Balancing Transmission Losses $ (1,084.88) $ (1,084.88) Day-ahead Spot Market Energy $ 653,872.04 $ 653,872.04 Day-ahead Transmission Congestion $ (236,810.31) $ (236,810.31) Day-ahead Transmission Losses $ 32,065.47 $ 32,065.47 Inadvertent Interchange $ 244.69 $ 244.69 Load Reconciliation for Balancing Operating Reserve $ (404.51) $ (404.51) Load Reconciliation for Day-ahead Scheduling Reserve $ (974.02) $ (974.02) Load Reconciliation for FERC Annual Recovery $ (277.29) $ (277.29) Load Reconciliation for Inadvertent Interchange $ 65.19 $ 65.19 Load Reconciliation for Market Monitoring Unit (MMU) Funding $ (17.73) $ (17.73) Load Reconciliation for Non-Synchronized Reserve $ (25.44) $ (25.44) Load Reconciliation for North American Electric Reliability Corporation (NERC) $ (46.28) $ (46.28) Load Reconciliation for Organization of PJM States, Inc. (OPSI) Funding $ (3.19) $ (3.19) Load Reconciliation for PJM Scheduling, System Control and Dispatch Service $ (951.16) $ (951.16) Load Reconciliation for PJM Scheduling, System Control and Dispatch Service Refund $ 37.81 $ 37.81 Load Reconciliation for Reactive Services $ (7,489.21) $ (7,489.21) Load Reconciliation for Regulation and Frequency Response Service $ (1,505.34) $ (1,505.34) Load Reconciliation for Reliability First Corporation (RFC) $ (66.14) $ (66.14) Load Reconciliation for Schedule 9-6 - Advanced Second Control Center $ (100.58) $ (100.58) Load Reconciliation for Spot Market Energy $ (201,652.28) $ (201,652.28) Load Reconciliation for Synchronized Reserve $ (532.38) $ (532.38) Load Reconciliation for Synchronous Condensing $ (9.04) $ (9.04) Load Reconciliation for Transmission Congestion $ (16,651.45) $ (16,651.45) Load Reconciliation for Transmission Losses $ (11,295.46) $ (11,295.46) Load Reconciliation for Transmission Owner Scheduling, System Control and Dispatch Service $ (342.23) $ (342.23) Meter Error Correction $ (3,432.58) $ (3,432.58) 480-8102-592-95-91 Total $ 110,738.20 $ 110,738.20 480-8102-592-95-92 Balancing Spot Market Energy $ (148,788.37) $ (148,788.37) Balancing Transmission Congestion $ 45,730.58 $ 45,730.58 Balancing Transmission Losses $ 2,320.20 $ 2,320.20 480-8102-592-95-92 Total $ (100,737.59) $ (100,737.59) 480-8102-592-95-93 Reactive Supply and Voltage Control from Generation and Other Sources Service $ (29,467.58) $ (29,467.58) Transmission Losses $ (19,115.62) $ (19,115.62) 480-8102-592-95-93 Total $ (48,583.20) $ (48,583.20) Grand Total $ (1,478,445.79) $ 1,933,618.08 $ 455,172.29 26

The Energy Authority, Inc. Monthly Management Committee Update – June 2014 July 24, 2014 Prepared by: Robert Trinnear Client Services Manager 904.360.1309 rtrinnear@teainc.org

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

I. Executive Summary A. Power Supply Summary: Overall Power Supply costs were $257,388 over budget due to higher market prices and PJM fees. Dover’s budgeted cost for all power supply (capacity AND energy) was $66.98/MWh. The actual cost of all power supply (capacity AND energy) was $72.69/MWh. The cost of energy alone was $52.01/MWh, versus a budgeted energy cost of $48.13. Dover’s hedge purchases totaled 53,136 MWh, which was 80% of the actual load. The budgeted hedge purchase totaled 26,160, which was 38% of the budgeted load. Dover’s power purchases from hedge transactions totaled $2,546,942. Purchases from PJM (energy and fees) totaled $1,145,521. This number includes DA spot market energy of $657,666 and Network Integration Transmission Service charge of $403,721. Dover’s total load was 66,511 MWh versus a forecasted load of 68,340 MWh. Dover’s planned energy purchase from the SunPark solar installation was 2,328 MWh. Dover’s actual energy purchase from the SunPark installation was 2,280 MWh. 1

Supply Source Summary: Supply Variance: Budget Actual Variance Gross Load 68,340 66,511 1,829 Wholesale Load 66,012 64,230 1,782 Hedged Volume (MWh) 26,160 53,136 (26,976) Unhedged Volume (MWh) 39,852 11,094 28,758 Dover SunPark Volume (MWh) 2,328 2,280 48 Renewable Energy Credits Volume 349 303 46 Hedged Cost ($/MWh) $ 55.46 $ 47.93 $ 7.53 Unhedged Energy Cost ($/MWh) $ 41.04 $ 61.16 $ (20.12) Solar Energy Cost ($/MWh) $ 87.03 $ 102.42 $ (15.39) Energy Costs ($/MWh) $48.13 $52.01 ($3.88) All-in Costs - Energy, Capacity and RECs ($/MWh) $66.98 $72.69 ($5.71) 2

B. Generation Summary: Dover generated 5,649 MWh in the month. Net generation revenue was $(246,277) vs. a budget of $(142,526). 3

Generation Breakdown: City of Dover Monthly Wholesale Generation June, 2014 Net Generation 5648.821 All In Generation PJM - Generation Economic and Reliability Dispatch $ 463,271.30 Generation Capacity Credit $ 702,347.40 Black Start and Transmission Losses $ 59,930.12 Natural Gas & Oil Consumption Purchases for Generation $ (288,115.13) Natural Gas Transport $ (46,491.50) Eastern Shore Cashout $ 3,471.13 Oil Consumption $ (24,789.49) Production Margin PJM - Generation Economic and Reliability Dispatch $ 463,271.30 Natural Gas & Oil Consumption Purchases for Generation $ (288,115.13) Natural Gas Transport $ (46,491.50) Eastern Shore Cashout $ 3,471.13 Oil Consumption $ (24,789.49) Gross Production Margin $ 107,346.31 $/MWh Generation Production Gross Margin $ 19.00 4

C. Emissions Summary: Emissions Allowance Summary through June 30, 2014 McKee Run3 and VanSant Unit 11 (Dover’s two units covered by the Clean Air Interstate Rule or CARI) operated during the month of June, so there were additional emissions during this period. CAIR EMISSION ALLOWANCE SUMMARY SO2 NOx Allowances1 Date Action Allowances Seasonal Annual 1/1/09 2008 Carryover 3,240 0 0 1/1/09 2009 Allocation 2,723 53 80 2/1/10 2010 Allocation 2,039 50 78 1/1/11 2011 Allocation 1,988 49 78 4/1/11 2011 Reallocation 2 4 1/11/12 2012 Allocation 1,988 51 80 10/4/2012 2013 Allocation 1,988 49 76 2014 Allocation 1,988 49 76 9/29/09 SO2 Sales (1,500) 11/12/09 NOx Ann. Sales (45) 11/13/09 SO2 Sales (1,410) 11/20/09 NOx Seas. Sales (25) 12/31/09 2009 Emissions2 (1) (6) (13) 12/31/10 2010 Emissions 0 (54) (54) 10/31/10 EPA Linearity Testing Req. (68) (68) 2011 2010 Deficit NOx Purchases 53 22 Aug 2011 Revised 2010 ECMPS data 30 30 Nov 2011 NOx Seas. Sales (DEMEC) (1) 12/31/11 2011 Emissions2 (1) (32) (36) 12/31/12 2012 Emissions2 (1) (37) (37) Nov 2012 NOx Seas. Sales (DEMEC) (2) 2/13/2013 NOx Annual. Sales (DEMEC) (3) 11/15/13 NOx Annual Sales (DEMEC) (5) 12/31/13 2013 Emissions (0) (20) (20) 6/30/14 2014 CYTD Emissions (1) (12) (26) REMAINING ALLOWANCES 13,040 85 224 On August 21, 2012, a three-judge panel of the U.S. District Court of Appeals (DCA) in Washington vacated EPA’s Cross State Air Pollution Rule (CSAPR) which would have 1 Per CAIR, starting in 2009, NOx emissions are governed by a seasonal and annual program. 2 Under CAIR, pre-CAIR SO2 allowances are retired at a rate of 2 allowances for each ton emitted. It is assumed that pre-CAIR allowances will be retired before CAIR allowances. 5

become effective on January 1, 2012. The DCA instructed EPA to continue administering the Clean Air Interstate Rule (CAIR). EPA appealed the DCA ruling to the U.S. Supreme Court, which heard arguments on December 10th, 2013. On April 29th, 2014, the U.S. Supreme Court overturned the DCA opinion; however it did not immediately reinstate CSAPR. It sent the rule back to the DCA for further action consistent with the Supreme Court’s opinion. On June 26th, 2014, EPA requested the DCA to reinstate CSAPR, with Phase 1 compliance deadlines being changed by 3 years to 2015 and 2016, and Phase 2 compliance deadlines being changed to 2017. To date, the DCA has not acted on EPA’s motion to lift the DCA’s stay from 2011. While Delaware is included in the CAIR footprint, it is not included in the CSAPR footprint. CAIR allowances cannot be used for CSAPR compliance, so Dover’s CAIR allowances will become valueless when CSAPR is reinstated. The separate Clean Air Act acid rain deposition control program will remain in effect, however the CAIR provisions for SO2 will also disappear for Delaware. Market liquidity for CAIR allowances continues to be low, with few transactions occurring. The following table shows estimated values for Dover’s banked allowances, based on settlement prices on the Intercontinental Exchange (ICE). Mark-to-Market for CAIR Allowances Commodity $/Ton Tons Extended ICE Settlement as Value of July 21, 2014 SO2 Allowances (2009 & earlier) $ 1.35 5,089 $ 6,870 SO2 Allowances (2010-14) $ 0.85 7,951 6,758 NOx Allowances - Seasonal $25.00 87 2,175 NOx Allowances - Annual $65.00 224 14,560 TOTAL $30,363 Regional Greenhouse Gas Initiative, Pending Federal Regulations 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 has elected 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. 6

Dover had more than a sufficient number of RGGI allowances allocated to it to cover its requirements through the first compliance period (calendar years 2009-2011). Any unused allowances are carried over (“banked”) for subsequent years. The table below shows RGGI allowance allocations, deductions and the cumulative balance by year (column 8). CO2 Allowance Summary (6/30/2014) 1 2 3 4 5 6 7 8 CO2 Allowances Annual CO2 CO2 (Per Facility, Allocated Cumulative CO2 Tons CO2 Allowance Allowances Prior to Sale) CO2 Vintage Sold YTD Allowances Emitted Allowance Balance McKee Balance VanSant Run 2009 0 60,128 2,056 62,184 (5,796) 56,388 56,388 2010 0 48,102 1,645 49,747 (32,971) 16,776 73,164 2011 0 36,077 1,234 37,311 (17,763) 19,548 92,712 2012 0 27,058 925 27,983 ( 15,265) 11,793 104,505 3 2013 0 15,032 514 24,818 (10,231) 16,091 119,091 2014 0 -0- -0- -0- (10,818) 108,486 Dover no longer receives allocations of RGGI allowances. The Cumulative Balance (column 8) – aka “Banked Allowances”) can be utilized for generation in 2014 and future years. Once the banked allowances have been fully utilized, Dover will be required to purchase RGGI allowances through the auctions or through over-the-counter markets. Assuming that Dover does not sell any banked allowances and produces 20,000 tons per year, it should be able to maintain a positive balance through around 2019. Dover could elect to sell all or a portion of its banked allowances now and re-acquire allowances at a later date; however TEA is currently of the opinion that Dover will be better off retaining its banked allowances for use during future compliance years. The most recent RGGI spot auction occurred on June 4th, 2014; the auction cleared at $5.02/ton. The next auction will occur on September 3rd, 2014. RGGI futures settlement prices posted on Intercontinental Exchange (ICE) on July 21, 2014 ranged from $4.95 to $5.26/ton, depending settlement month and vintage. Based on the July 21, 2014 ICE price for the December 2014 strip ($4.98/ton), the estimated market value of Dover’s existing 118,486 ton RGGI allowance bank is $540,260. 3 Includes Q3 2013 allocations of 7,846,757 for McKee Run and 1,424,677 for VanSant. 7

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 SRECS. Through the end of February 2014, Dover has accumulated a total of 7,004 SRECS from these renewable energy resources. While Delaware does periodically hold auctions for SRECs, these auctions are for size tiers N1 – N3, E1 and E2. The Dover Sun Park is in the N4 tier for very large facilities. State-wide carve outs for Tier 4 has been fully subscribed, so there is not a market for tier 4 SRECs in Delaware. The nearest viable market for Dover’s SRECs is Pennsylvania. SREC Trade (www.srectrade.com) closed an auction it conducted on July 15, 2014. The clearing prices for Pennsylvania SRECS are used in the table below. SREC Vintage Auction Clearing Price SREC Quantity Market Value (June 1 – May 31) $0 2010/2011 13 $ 0 (N/A) $ 30.05 2011/2012 2,375 71,369 (July 2014 Auction) $31.05 2012/2013 2,725 84,611 (July 2014 Auction) $32.05 2013/2014 2,701 86,567 (July 2014 Auction) TOTAL 7,814 $242,547 TEA continues to recommend to Dover to retain these allowances for compliance with its Renewable Portfolio Standard (RPS) which DEMEC is working on. DEMEC has not provided TEA with any instructions to transfer SRECs to DEMEC’s account or retire an appropriate number of SRECs to comply with the DEMEC RPS. NOTE: SRECs in both Delaware and Pennsylvania expire without value after 3 years. DEMEC has invoiced Dover for its non-solar RECs for the last compliance period. Procedures for tracking and retiring Dover’s RECs under the DEMEC RPS should be developed. 8

D. Operations Management Summary: During the month of June, there were no restricted work days or lost time accidents. The facility has now gone 3 years, 8 months and 16 days (1,352 days) through June 2014 without an OSHA Recordable Accident or a Lost Time reportable accident. On June 16, 2014, eight plant staff members completed competent person scaffold training and received certifications. The plant also had inspections performed by a third party on the plant fire extinguishers and on the plant deluge system. Both passed with limited repairs or replacement of equipment needed. The plant received no Notice of Violations (NOVs) during the month. McKee Run and VanSant are exempt from the reporting criteria for the Toxic Release Inventory Report and therefore no report was submitted for 2014. The June DMR was submitted for the McKee Run site with no NPDES exceedences. There were no opacity deviations during the month of June 2014. McKee Run Unit 2 and VanSant Unit 11 underwent stack testing as deemed necessary by Title V requirements. Also during the month, a linearity check was performed by ICE staff on Unit 3 since it was apparent that the total number of operating hours for the quarter would exceed the operating hour threshold which would then require this calibration test to be performed. During the month of June, there were six IWW discharges to the Kent County Sewer. Sampling occurred on June 16, 2014 and laboratory analytical data indicated no exceedences. The June SIU Report was submitted to Kent County. E. Risk Management Summary: Forward power prices in PJM are lower than last month. The current projected cost of service is below: Monthly Blended Cost Change PY Hedge Ratio ($/MWh) ($/MWh) 2014-15 76% $45.19 ($1.39) 2015-16 58% $42.35 ($1.57) 2016-17 24% $41.38 ($2.18) 2017-18 17% $42.46 ($2.91) 9

II. Budget Report Budget Actual Variance Jun-14 Jun-14 Gross Load 68,340 66,511 1,829 Power Supply Hedged Energy $1,450,896 $2,546,942 ($1,096,046) PJM - Energy, Congestion & Losses $1,635,595 678,517 $957,078 PJM - ARR, Transmission and Fees $395,000 467,004 ($72,004) Dover SUN Park Energy $202,614 $233,552 ($30,939) Dover SUN Park RECs $25,000 $43,323 ($18,323) Management Fees $83,000 $83,000 $0 PJM - Capacity UCAP Obligated Purchased $785,403 $ 782,556.87 $2,846 Subtotal - Power Supply $4,577,508 $4,834,896 ($257,388) Power Generation O&M Plant O&M $889,731 $1,140,690 ($250,959) Subtotal Generation O&M 889,731.00 1,140,690.00 ($250,959) Power Generation Production Margin PJM - Economic and reliability dispatch $0 $ (463,271.30) $463,271 Fixed Fuel and Transport Charges $0 $ 331,135.50 ($331,135) Subtotal Generation Production Margin $0 $ (132,135.80) $132,136 Power Generation Non-Production Revenue PJM - Generation Capacity Credit ($716,625) $ (702,347.40) ($14,278) Emissions Allowance Sales $0 $ - $0 PJM - Black Start & Transmission Losses ($30,580) $ (59,930.12) $29,350 Subtotal - Non-Production Revenue ($747,205) ($762,278) $15,073 SubTotal - All Generation $142,526 $246,277 ($103,751) Total - Utilities Cost $4,720,034 $5,081,173 ($361,139) Unit Costs Total - Power Supply $66.98 $72.69 ($5.71) Total - Power Generation $2.09 $3.70 ($1.62) Final Cost of Service to City of Dover Ratepayers $69.07 $76.40 ($7.33) 10

Variance Analysis: Power Supply  Dover consumed 1,829 MWh less than forecast for the month.  PJM energy costs were higher than expected due to higher market prices. PJM Fees were higher than budget.  Hedges were placed at below budget levels but were unable to offset the higher fees, solar costs and market prices. This resulted in a net power supply cost of $72.69/MWh, $5.71/MWh above budget.  For the month, the city realized an unfavorable variance of $257,388 for power supply vs. the monthly budget.  Dover Sun Park generated 48 MWh less than forecast. Generation  Power generation had a favorable budget variance of $132,136.  Plant O&M expenses had an unfavorable budget variance of $250,959 for the month. 11

YTD Variance Report: Budget Actual Variance YTD YTD Gross Load 743,977 762,254 (18,277) Power Supply Hedged Energy $23,831,966 $29,116,756 ($5,284,790) PJM - Energy, Congestion & Losses $12,812,840 $15,040,866 ($2,228,026) PJM - ARR, Transmission and Fees $4,740,000 $7,606,895 ($2,866,895) Dover SUN Park Energy $1,565,800 $1,821,037 ($255,237) Dover SUN Park RECs $300,000 $381,150 ($81,150) Management Fees $996,000 $996,000 $0 PJM - Capacity UCAP Obligated Purchased $15,787,176 $15,504,095 $283,081 Subtotal - Power Supply $60,033,782 $70,466,799 ($10,433,017) Power Generation O&M Plant O&M $6,015,800 $5,909,541 $106,259 Subtotal Generation O&M $6,015,800 $5,909,541 $106,259 Power Generation Production Margin PJM - Economic and reliability dispatch ($230,472) ($5,996,924) $5,766,452 Fixed Fuel and Transport Charges $0 $2,605,129 ($2,605,129) Subtotal Generation Production Margin ($230,472) ($3,391,795) $3,161,323 Power Generation Non-Production Revenue PJM - Generation Capacity Credit ($15,079,750) ($15,065,472) ($14,278) Emissions Allowance Sales $0 $0 $0 PJM - Black Start & Transmission Losses ($396,960) ($1,171,024) $774,064 Subtotal - Non-Production Revenue ($15,476,710) ($16,236,496) $759,786 SubTotal - All Generation ($9,691,382) ($13,718,750) $4,027,368 Total - Utilities Cost $50,342,400 $56,748,049 ($6,405,649) Unit Costs Total - Power Supply $80.69 $92.45 ($11.75) Total - Power Generation ($13.03) ($18.00) $4.97 Final Cost of Service to City of Dover Ratepayers $67.67 $74.45 ($6.78) 12

Operations Management NAES Corporation Dover, Delaware June 2014 Monthly Report 13

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

1.0 Environmental, Health and Safety: During the month of June, there were no restricted work days or lost time accidents. The facility has now gone 3 years, 8 months and 16 days (1,352 days) through June 2014 without an OSHA Recordable Accident or a Lost Time reportable accident. On June 16, 2014, eight plant staff members completed competent person scaffold training and received certifications. The plant also had inspections performed by a third party on the plant fire extinguishers and on the plant deluge system. Both passed with limited repairs or replacement of equipment needed. The plant received no Notice of Violations (NOVs) during the month. McKee Run and VanSant are exempt from the reporting criteria for the Toxic Release Inventory Report and therefore no report was submitted for 2014. The June DMR was submitted for the McKee Run site with no NPDES exceedences. There were no opacity deviations during the month of June 2014. McKee Run Unit 2 and VanSant Unit 11 underwent stack testing as deemed necessary by Title V requirements. Also during the month, a linearity check was performed by ICE staff on Unit 3 since it was apparent that the total number of operating hours for the quarter would exceed the operating hour threshold which would then require this calibration test to be performed. During the month of June, there were six IWW discharges to the Kent County Sewer. Sampling occurred on June 16, 2014 and laboratory analytical data indicated no exceedences. The June SIU Report was submitted to Kent County. Environmental, Health, and Safety Statistics Month Fiscal Year to Date (June) (7/1/13-6/30/14) NOVs 0 0 Opacity Deviations 0 11 Environmental Deviations 0 0 OSHA Recordable 0 0 OSHA LTA's 0 0 First Aid cases 0 1 Restricted Workday Accident 0 0 Near Miss 0 2 Man Hours Worked 4,651.75 52,955.25 Date last OSHA Recordable 10/14/10 Date last Lost Time Accident 10/14/10 Days since last OSHA recordable 1,352 Days since last Lost Time Accident 1,352 15

Emissions (NOx, CO2 & SO2) All data thru 6/30/14 NOx Summary – Ozone Season (May-Sep) Tons Year Unit #1 Unit #2 Unit #3 Unit #11 TOTAL 2011 1.8 1.5 31.4 1.4 36.1 2012 1.2 1.0 35.8 1.0 33.1 2013 1.1 1.7 19.3 1.3 23.4 2014 0.0 0.2 10.3 0.2 10.7 NOx Summary - Year (Jan-Dec) Tons Year Unit #1 Unit #2 Unit #3 Unit #11 TOTAL 2011 1.8 1.5 32.6 2.9 38.8 2012 1.2 1.1 35.8 1.0 36.9 2013 1.1 1.7 19.4 1.3 23.5 2014 0.5 0.7 15.1 3.1 19.4 SO2 Summary - Year (Jan-Dec) Tons Year Unit #1 Unit #2 Unit #3 Unit #11 TOTAL 2011 0.0 0.0 0.1 0.5 0.6 2012 0.0 0.0 0.0 0.1 0.1 2013 0.0 0.0 0.0 0.2 0.2 2014 0.0 0.0 0.4 0.6 1.0 16

CO2 Allowances Summary CO2 CO2 CO2 Allowances Available Total CO2 CO2 Allowance Allowances (Per Facility, Prior to Tons Emitted Allowance Vintage Sold YTD Sale) Balance McKee Run VanSant 2009 0 60,128 2,056 5,796 56,388 2010 0 48,102 1,645 32,971 16,776 2011 0 36,077 1,234 17,763 19,548 2012 0 27,058 925 15,265 11,793 2013 0 22,879 1,939 10,231 14,587 2014 0 0 0 10,554 (10,554) Total CO2 Allowance Balance 102,225 *Note: CO2 allowance values are provided by the RGGI CO2 Allowance Tracking System. Note: All emissions (NOx, SO2 and CO2) totals for 2013 are unofficial. #Note: Additional CO2 Emission Values were added to 2013 balances by RGGI COATS- 7,846.757 for McKee Run and 1,424.677 for VanSant CAIR NOx Allowances Summary* NOx Allowances CAIR CAIR NOx Available Total NOx NOx Allowance Balance CAIR NOx NOx Allowances (Per Facility, Prior to Tons Emitted Allowances Allowance Sold YTD Sale) (Yr/ Season) Purchased Vintage McKee McKee VanSant YTD VanSant Run McKee Run - Run (Yr/Season) (Yr/Season) (Yr/Season) VanSant (Yr/Season) 2010 and 3*** 27/0 0/2 earlier 2011 0 77/48 5/3 33/31– 3/1 0/0 - 0/0 42/10 2/2 2012 2** 75/46 5/3 36/36 – 1/1 0/0 - 0/0 39/10 2/0 2013 5** 77/48 5/3 19/19 – 1/1 0/0 - 0/0 58/24 4/2 2014 0 71/46 5/3 23/11 - 3/1 0/0 – 0/0 48/35 2/2 Total NOx Allowance Balance 187/79 10/6 *Note – Emissions allowances are deducted according to oldest vintage first or unless otherwise directed. **Note – The facility transferred Ozone Season allowances to a third party. SO2 Allowances Summary SO2 Allowances Available Total SO2 Tons (Per Unit, Prior to Sale & Emitted – SO2 Allowances SO2 Allowance SO2 Allowances Reconciliation) U3 and U11 Balance Vintage Sold - YTD Unit #3 Unit #11 YTD 2010 and earlier 0 4815 276 0 5089 2011 0 1850 138 1 1988* 2012 0 1850 138 1 1988* 2013 0 1850 138 0 1988* 2014 0 1850 138 1 1987 Total SO2 Allowance Balance 13,040 *Note – Emissions allowances are deducted according to oldest vintage first, unless otherwise directed. 17

2.0 Financial Financial – Current Month Month – June Actual Budget Variance Personnel 748,707 634,580 (114,127) Materials & Supplies 45,581 8,190 (37,391) Administrative Expenses 346,402 246,761 (99,641) Total $1,140,690 $889,531 ($251,159) Financial – Fiscal Year to Date Number of Months – 12 Actual Budget Variance Personnel 3,471,521 3,791,300 319,779 Materials & Supplies 217,451 223,600 6,149 Administrative Expenses 2,040,605 2,000,900 (39,705) Total $5,729,577 $6,015,800 $286,223 2.1 Variance analysis: The estimated actual expenses (possible accruals) for the month of June are $1,140,690 against a budgeted amount of $889,531 for an unfavorable variance of $251,159 or 28.23%. The variance was due to the following: PERSONNEL EXPENSES – An unfavorable monthly variance of $114,127 was due to having three (3) payrolls and a week of accrual payroll period expensed versus the two (2) that were budgeted for June. As a result, this impacted three labor accounts – straight time, overtime, and labor burdens. A portion of this variance was positively offset by lower than budgeted incentive and incentive burden expenses. MATERIALS AND SUPPLIES EXPENSES- An unfavorable monthly variance of $37,391 was due to increased operational time resulting from required emissions testing and dispatched hours causing an increase in water /sewer and water treatment chemical costs. ADMINISTRATIVE EXPENSES – An unfavorable monthly variance of $99,641 due to higher electricity usage costs than anticipated as a result of increased operational time resulting from required emissions testing and dispatched hours. The forecasted expenses, not counting possible accruals, for this fiscal year are $5,729,577 expensed versus an approved budget of $6,015,800 thereby realizing a 95.24% expenditure rate. 18

3.0 Operations Unit Operations / Outages / Trips: Unit 3 was dispatched eight times by PJM in the month of June. On June 10, a capacity test was completed on Unit 3 for the summer run. On June 18, due to high vibration during start up, Unit 3 was put back on turning gear. The Unit 3 missed the 1100 start time requested by PJM and ended up with a forced outage of 2.867 hours when the unit was put on line at 1322 hours. Unit 2 was operated on June 3 on oil to complete stack testing for the past year. Unit 11 was operated on June 4 and completed stack testing while combusting natural gas. Unit 1 was not dispatched for the month of June. Month June 2014 McKee McKee McKee MRS VanSant Total Unit 1 Unit 2 Unit 3 Facility Unit 11 All Units Capacity MW 17 17 102 136 39 175 On Line Hours Hrs 0.0 14.050 110.847 124.897 8.550 133.447 Starts # 0 1 8 9 1 10 Gross Generation MWh 0.0 140.247 6,524.978 6,665.225 223.114 6,888.339 Net Generation MWh 0.0 133.005 5,984.472 6,117.477 222.935 6,340.412 Total Auxiliaries MWh 0.0 32.071 805.381 837.452 1.666 839.118 Auxiliaries purchased MWh 24.829 24.829 264.875 314.533 1.487 316.020 Fuel Gas Used MMBTU 0.0 301.815 67,629.569 67,931.384 3,113.460 71,044.844 Fuel Oil Used MMBTU 0.0 1,586.894 0.0 1,586.894 0.0 1,586.894 Fuel Oil Used Gallons 0.0 11,466 0.0 11,466 0.0 11,466 Total Fuel MMBTU 0.0 1,888.709 67,629.569 69,518.278 3,113.460 72,631.738 Net Heat Rate BTU/KWh 0.0 14.200 11.301 12.750 13.966 13.358 Unit Trips # 0.0 0.0 0.0 0.0 0.0 0.0 Capacity Factor % 0.0 1.09 8.15 6.25 0.79 5.03 Availability Factor % 100.00 100.00 99.60 99.87 100.00 99.90 Commercial % 0.0 0.0 0.4 0.3 0.0 0.23 Unavailability (CU) Planned Outage Hours Hours 0.000 0.000 0.000 0.000 0.000 0.000 Maintenance Outage Hours 0.0 0.0 0.0 0.0 0.0 0.0 Hours Forced Outage Hours Hours 0.0 0.0 2.867 2.867 0.0 2.867 Reserve Shutdown Hours 720.00 705.950 609.153 2,035.103 711.450 2,746.553 Hours HW Boiler Gas Usage MMBTU 0.0 0.0 Pilot Gas Usage MMBTU 11.649 43.419 55.068 55.068 # Note: Does not include HWB or Pilot Gas. Fuel usage numbers are taken from fuel flow instruments. 19

2013-2014 Fiscal Year-to-Date - June McKee McKee McKee MRS VanSant Total Unit 1 Unit 2 Unit 3 Facility Unit 11 All Units Capacity MW 17 17 102 136 39 175 On Line Hours Hrs 135.697 228.082 423.702 788.214 84.205 871.686 Starts # 7 8 32 47 21 68 Gross Generation MWh 959.877 1,553.807 25,453.652 27,967.336 2,838.208 30,805.544 Net Generation MWh 895.980 1,442.809 23,304.093 25,642.882 2,835.941 28,478.823 Total Auxiliaries MWh 399.882 512.081 4,477.867 5,389.830 44.516 5,434.346 Auxiliaries purchased MWh 378.608 421.138 2,328.752 3,128.498 41.520 3,170.018 Fuel Gas Used MMBTU 8,924.901 15,306.390 244,116.258 268,347.549 22,795.615 291,143.164 Fuel Oil Used MMBTU 5,504.840 6,050.248 36,178.243 47,733.331 15,380.547 63,113.878 Fuel Oil Used Gallons 38,567 42,694 252,473 333,734 108,053 441,787 Total Fuel MMBTU 14,429.741 21,356.638 280,294.501 316,080.880 38,176.162 354,257.042 Net Heat Rate BTU/KWh 15.641 14.170 12.689 14.166 13.582 14.066 Unit Trips # 1 1 0 2 5 7 Capacity Factor % 0.60 0.97 2.61 2.15 0.83 1.86 Availability Factor % 59.36 60.27 60.24 59.96 60.27 60.04 Commercial % 0.95 0.04 0.04 0.16 0.00 0.12 Unavailability (CU) Planned Outage Hours Hours 3,480.00 3,480.00 3,480.00 10,440.00 3,480.00 13,920.00 Maintenance Outage Hours 0.0 0.0 0.0 0.0 0.0 0.0 Hours Forced Outage Hours Hours 80.000 0.0 2.367 82.367 0.0 82.367 Reserve Shutdown Hours 5,064.303 5,015.918 4,908.708 14,988.929 5,195.795 20,184.724 Hours HW Boiler Gas Usage MMBTU 6,203.127 6,203.127 Pilot Gas Usage MMBTU 2,386.783 4,738.046 7,124.829 7,124.829 Fuel Oil Inventory Monthly Monthly Fuel Monthly FY 13-14 Fuel FY 13-14 Inventory Inventory Purchases Inventory Inventory Purchases Inventory (Start) (End) (Month) (Change) (Start) (FYTD) (Change) McKee Run (#2 Fuel Oil) 464,419 452,963 0 (11,456) 454,725 378,003 (1,762) VanSant 73,235 73,572 0 337 146,133 35,000 (72,561) (#2 Fuel Oil) Note: As measured by tank level instruments. Tank levels may change due to oil temperature. VanSant Lifetime through June 2014 Actual Starts Factored Starts Fired Hours VanSant 1352 2316.75 4,315.70 Since HGP - Dec 2004 258 649.05 932.12 20

Team Report: Operations completed three successful capacity tests for the summer on Units 2, 3, and 11. Unit 1 has not been dispatched for the summer to complete a capacity test. Operations personnel continue to support maintenance by working on Preventative Maintenance (PM) work orders and other work orders that they have the necessary skills to successfully complete the task. The Operations Department continues to utilize the Day Shift Workers in both the Operations and Maintenance areas to help in maintaining the plant. Capacity Testing – FY 2013-2014 Summer 2013 (June 1- Aug 31) Winter 2013-2014 (Dec 1- Feb 28) Unit Rated Net Reported Net Unit Rated Net Reported Net Capability (MW) Capability (MW) Capability (MW) Capability (MW) 1 17 17.2 1 17 17.5 2 17 17.8 2 17 18.2 3 102 103.0 3 102 104.4 11 39 40.9# 11 39 44.05# Total 175 178.9 Total 175 184.1 Note: * Denotes Unit is qualified for the PJM Winter Demonstration Period Exemption Program and data has been submitted into the PJM eGADS Note: # Depicts Net Corrected Capacity for Ambient Air Conditions – VanSant Unit only 4.0 Maintenance During the month of June, the Plant Maintenance staff continued addressing the backlog of work orders. There were forty-seven work orders issued with ninety-seven work orders being completed during the month. No safety work orders were entered into the plant’s Computerized Maintenance Management System (MP2) during the month. The table below summarizes the monthly work order activities. 21

Work Order Report June - 2014 Outstanding From Outstanding Previous Issued This Completed at the end of Priority # Month Month This Month the month 1 18 1 4 15 2 86 9 40 55 3 45 3 7 41 4 5 0 0 5 5 14 0 2 12 SW1 0 0 0 0 SW2 0 0 0 0 SW3 0 0 0 0 SW4 0 1 0 1 SW5 0 0 0 0 PM 86 33 44 75 EM 0 0 0 0 Totals 254 47 97 204 Note: PM Work Orders are included in the priority totals Notable activities during the month include: The NAES maintenance Staff completed the removal and replacement of the Unit 2 air heater soot blowing gear box. During the last operation of the unit, it was discovered that the soot blowing arm for the air heater was not moving. By repairing this gearbox, the air heater will be able to clean allowing for better performance for the boiler. The NAES IC&E staff completed a successful Linearity test on Unit 3. Unit 3 had operated to the requirements that the test needed to be completed. By completing the test in the operating quarter, it allowed the plant to stay compliant with the state Operating Permits. During the month, while the Operations Staff was testing Units 1 and 2 for start-up operation to ensure the boiler systems were ready to upcoming run season, they discovered an issue with being able to keep a pilot established in the boiler. The IC&E Staff started troubleshooting the issue during which they discovered that the flame scanners were being saturated with too much flame. They made adjustment to the scanners and flame was able to be established in the boiler and was able to maintain the flame. 22

5.0 Capital Improvement Projects (CIP) Project Description Update Number Progress: Cooling Tower decking is 100% complete. Inspection was conducted in March as a precursor for CIP work scope development next FY. Schedule: Inspection work completed and work scope modified to Unit #3 Cooling reflect deficiencies found during inspection. Bids requested and bid EG1402 meeting held for fill replacement. Bids on project were received, Tower Repairs have been evaluated and recommendations will be provided to COD City Council for approval in late July or August. Cash flow requirements will need to be adjusted to reflect new cash flow projections. McKee Run Progress: All work planned is now complete. Auxiliary Schedule: Project closeout left to complete EG1404 Component Replacement VanSant Station Progress: All work planned is now complete EG1405 Component Schedule: Project closeout left to complete Replacement Progress: The recently completed hanger adjustments will need to be checked with the unit in the hot (running) position. Expected McKee Run HEP EG1406 July operations should provide an opportunity to do so. Pipe Repairs Schedule: Planning is underway to develop work scope to change out one section of pipe scheduled for the fall of 2014. Progress: Work scope is still being developed for an RFP. Metering System Schedule: Work activities are moving forward. Working with EG1407 Upgrades vendor to finalize RFP documents for release in late June or July period. Progress: With engineering support, work scopes are being McKee developed for RFP(s) to be put out in July period. Will need to go EG1408 Run/VanSant Safety out for bids once complete. Compliance Items Schedule: Work activities are behind due to Fall and Spring Outage activities. McKee Run Natural Progress: All work planned is now complete. EG1409 Gas Block-Bleed Schedule: Final invoice payment has been received and is being Valves processed for payment after which the Project may be closed out. McKee Progress: Plant staff completed development of paint specifications Run/VanSant and bid requests were received. EG1413 Structural Schedule: Bids were received in early September. Work put on hold Preservation due to budget restraints. Bid updates to be requested for Fiscal 2015 23

installation. Progress: All work planned is now complete. Viable suppliers for the damaged rotor expansion instrumentation are still being researched. This equipment is obsolete and will be replaced with current technology. Replacement of other turbine supervisory instrumentation will also be investigated. High vibration Unit 3 Turbine EG1212 experienced during hot starts will require an additional balancing Repairs during the upcoming fall outage. Plant staff is collecting data that will help determine where and how much balance weight will need to be installed in the next outage. Schedule: Outage cleared on May 30. We are continuing to pursue the replacement rotor expansion instrumentation. Progress: Cost to be incurred due to repairs on Unit 1 Boiler and McKee Run Units turbine were completed in November. EG1415 #1-#2 Component Schedule: Other scope activities cancelled due to the announcement Repairs to stop operation of Units 1 and 2 in 2017. Progress: Submitted permit application to DNEC in March and are currently discussing possible permit limitations contained in the draft permit. VanSant Capacity EG1416 Schedule: Award of system supplier approved in May. Planning in Increase progress with vendor for construction drawings and scheduling. Continuing to work with DNREC on Construction permit language and limits going forward. 6.0 General Plant Information Tom Lally, Operator II-1, completed his probation period on June 3, 2014 and is continuing add to his plant knowledge. Training: 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 “Shop Hazards and Typical Incidents”. Phil Marvel, Maintenance Supervisor, attended the Frame 6 Users Conference in Fort Myers, Florida. During the conference, Mr. Marvel had the opportunity to network with other users and to acquire greater knowledge of common unit/equipment failures, newer technology available and to develop leads on equipment suppliers. 24

Calendar of Events Date EIA-860 Report TBD EIA-923 Report TBD NPDES Permit Expires (DNREC has Extended) March 4, 2014 (TBD) Units 1, 2, and 3 Spring Outage March 3, 2014 – May 30, 2014 Unit 11 Spring Outage March 3, 2014 – May 30, 2014 Annual VanSant Black Start Test TBD NOx Ozone Season Starts May 1, 2014 PJM Summer Capacity Test Period June 1, 2014 – August 31, 2014 FY 2013-2014 Budget Year Ends June 30, 2014 Toxic Release Inventory (TRI) Annual Report July 1, 2014 Semi-Annual Title V Certification Due July 31, 2014 NOx Ozone Season Ends September 30, 2014 Units 1, 2, 3 and 11 Fall Outage October 1, 2014 Four Year Accident Free October 14, 2014 Winter Capacity Period December 1, 2014 to February 28, 2015 NOx Emissions Reconciliation Due March 1, 2015 SO2 Emissions Reconciliation Due March 1, 2015 SARA III / Tier II Report Due March 1, 2015 Units 1, 2, and 3 Spring Outage TBD Unit 11 Spring Outage TBD Air Emission Inventory April 30, 2015 7.0 Summary of NAES Performance to Date Plant Performance FY 2013-2014 Measure Month Year to Date YTD FY Maximum Incentive Incentive Commercial 0.23% 0.12% $89,822 $94,882 Unavailability (CU) Safety 0 0 $17,790 $17,790 Environmental 0 0 $17,790 $17,790 Capacity Tests Summer Winter Summer Winter Completed Unit 1 No No Yes Yes $3,559 $3,559 Unit 2 No No Yes Yes $3,559 $3,559 Unit 3 No No Yes Yes $21,349 $21,349 Unit 11 No No Yes Yes $7,117 $7,117 Total YTD 96.95% Total YTD Incentive $160,984 $166,045 Incentive % Note: All units successfully completed the Summer and Winter Capacity (FY 2013-2104) Testing for PJM. 25

III. Appendix 1 – PJM Invoice Breakdown Gen Load Grand Total 480-8102-592-95-49 Capacity Resource Deficiency ($5,493.33) ($5,493.33) Capacity Transfer Rights $58.80 $58.80 Locational Reliability $787,991.40 $787,991.40 480-8102-592-95-49 Total $782,556.87 $782,556.87 480-8102-592-95-50 RPM Auction ($702,347.40) ($702,347.40) 480-8102-592-95-50 Total ($702,347.40) ($702,347.40) 480-8102-592-95-90 Auction Revenue Rights ($53,198.10) ($53,198.10) Balancing Operating Reserve $8,283.22 $8,283.22 Balancing Operating Reserve for Load Response ($1.25) ($1.25) Black Start Service $2,014.95 $2,014.95 CT Lost Opportunity Cost Allocation ($46.80) ($46.80) Day-Ahead Load Response Charge Allocation $49.39 $49.39 Day-ahead Operating Reserve $4,347.71 $4,347.71 Day-ahead Scheduling Reserve $174.79 $174.79 Expansion Cost Recovery $408.30 $408.30 FERC Annual Recovery $4,611.46 $4,611.46 Load Reconciliation for Transmission Losses $14.87 $14.87 Market Monitoring Unit (MMU) Funding $285.03 $285.03 Michigan - Ontario Interface Phase Angle Regulators $186.92 $186.92 Network Integration Transmission Service $406,720.80 $406,720.80 Non-Firm Point-to-Point Transmission Service ($470.03) ($470.03) Non-Synchronized Reserve $256.52 $256.52 North American Electric Reliability Corporation (NERC) $702.90 $702.90 Organization of PJM States, Inc. (OPSI) Funding $46.00 $46.00 PJM Scheduling, System Control and Dispatch Service - Advanced Second Control Center $1,934.16 $1,934.16 PJM Scheduling, System Control and Dispatch Service - Capacity Resource/Obligation Mgmt. $921.90 $921.90 PJM Scheduling, System Control and Dispatch Service - Control Area Administration $11,114.84 $11,114.84 PJM Scheduling, System Control and Dispatch Service - Market Support $2,740.92 $2,740.92 PJM Scheduling, System Control and Dispatch Service - Market Support Offset ($214.02) ($214.02) PJM Scheduling, System Control and Dispatch Service - Regulation Market Administration $85.05 $85.05 PJM Scheduling, System Control and Dispatch Service Refund - Capacity Resource/Obligation Mgmt. ($28.80) ($28.80) PJM Scheduling, System Control and Dispatch Service Refund - Control Area Administration ($394.12) ($394.12) PJM Scheduling, System Control and Dispatch Service Refund - Market Support ($101.80) ($101.80) PJM Scheduling, System Control and Dispatch Service Refund - Regulation Market Administration ($3.77) ($3.77) PJM Settlement, Inc. $214.02 $214.02 Reactive Services $14,810.05 $14,810.05 Reactive Supply and Voltage Control from Generation and Other Sources Service $36,496.89 $36,496.89 Real-Time Load Response Charge Allocation $278.03 $278.03 Regulation and Frequency Response Service $14,171.82 $14,171.82 Reliability First Corporation (RFC) $998.49 $998.49 Synchronized Reserve $3,293.26 $3,293.26 Transmission Enhancement $1,419.57 $1,419.57 Transmission Owner Scheduling, System Control and Dispatch Service $4,880.78 $4,880.78 480-8102-592-95-90 Total $467,003.95 $467,003.95 480-8102-592-95-91 Balancing Spot Market Energy ($109,579.48) ($109,579.48) Balancing Transmission Congestion $7,753.83 $7,753.83 Balancing Transmission Losses ($3,496.73) ($3,496.73) Day-ahead Spot Market Energy $657,666.39 $657,666.39 Day-ahead Transmission Congestion $27,869.52 $27,869.52 Day-ahead Transmission Losses $107,556.45 $107,556.45 Inadvertent Interchange $1,262.09 $1,262.09 Load Reconciliation for Balancing Operating Reserve ($9.45) ($9.45) Load Reconciliation for Day-ahead Scheduling Reserve $30.42 $30.42 Load Reconciliation for FERC Annual Recovery ($16.14) ($16.14) Load Reconciliation for Inadvertent Interchange $3.74 $3.74 Load Reconciliation for Market Monitoring Unit (MMU) Funding ($1.21) ($1.21) Load Reconciliation for Non-Synchronized Reserve $2.02 $2.02 Load Reconciliation for North American Electric Reliability Corporation (NERC) ($2.92) ($2.92) Load Reconciliation for Organization of PJM States, Inc. (OPSI) Funding ($0.21) ($0.21) Load Reconciliation for PJM Scheduling, System Control and Dispatch Service ($63.08) ($63.08) Load Reconciliation for PJM Scheduling, System Control and Dispatch Service Refund $1.59 $1.59 Load Reconciliation for Reactive Services ($1,101.67) ($1,101.67) Load Reconciliation for Regulation and Frequency Response Service ($18.47) ($18.47) Load Reconciliation for Reliability First Corporation (RFC) ($4.19) ($4.19) Load Reconciliation for Schedule 9-6 - Advanced Second Control Center ($8.25) ($8.25) Load Reconciliation for Spot Market Energy ($3,240.02) ($3,240.02) Load Reconciliation for Synchronized Reserve $77.54 $77.54 Load Reconciliation for Transmission Congestion ($959.32) ($959.32) Load Reconciliation for Transmission Losses ($120.69) ($120.69) Load Reconciliation for Transmission Owner Scheduling, System Control and Dispatch Service ($22.71) ($22.71) Meter Error Correction ($5,061.67) ($5,061.67) 480-8102-592-95-91 Total $678,517.38 $678,517.38 480-8102-592-95-92 Balancing Operating Reserve ($13,353.61) ($13,353.61) Balancing Spot Market Energy $193,311.96 $193,311.96 Balancing Transmission Congestion ($12,036.97) ($12,036.97) Balancing Transmission Losses $8,885.10 $8,885.10 Day-ahead Operating Reserve ($390.92) ($390.92) Day-ahead Spot Market Energy ($565,028.27) ($565,028.27) Day-ahead Transmission Congestion ($59,277.63) ($59,277.63) Day-ahead Transmission Losses ($15,380.96) ($15,380.96) 480-8102-592-95-92 Total ($463,271.30) ($463,271.30) 480-8102-592-95-93 Day-ahead Scheduling Reserve ($44.71) ($44.71) Generation Resource Rating Test Failure ($862.43) ($862.43) Reactive Supply and Voltage Control from Generation and Other Sources Service ($29,467.58) ($29,467.58) Synchronized Reserve ($997.01) ($997.01) Transmission Losses ($28,558.39) ($28,558.39) 480-8102-592-95-93 Total ($59,930.12) ($59,930.12) Grand Total $ (1,225,548.82) $ 1,928,078.20 $702,529.38 26

FUND SUMMARY as of 07/29/2014 Total Collected $ 1,047,214.72 DEMEC Admin Fee Paid $ 57,915.35 State Admin Fee Paid $ 24,316.32 Customer Grants Paid $ 525,863.25 Customer Only Grants/Fees Reserved and Amount Owed $ 12,122.50 Community Project Funds Requested - Dov. Lib - Requested $ 1,970,000.00 Community Project Funds Paid - Dov. Lib $ 298,908.32 Energy Depot Fees Paid $ 51,825.38 Efficiency Program Dollars Paid $ 37,268.34 Solar Electric Power Association (SEPA) Fee Paid $ 6,476.41 Unencumbered Funds Available Grants $ 12,518.84 Funds Available for Dover Library $ 20,000.00 Current Grant Payment Delay (Months) 0.0 GRANTS PAID Grant Amount Review Fee Amount Date Grant Paid Applicant Type Paid Paid Owed 9/21/2007 Laura Drew Kelly Geo-Res $ 3,000.00 $ 225.00 $ - 12/5/2007 Domingo Reyes PV-Res $ 12,762.50 $ 750.00 $ - 4/16/2008 Lakeland Commercial Group Geo-NonRes $ 10,800.00 $ 750.00 $ - 6/19/2008 & 08/25/2008 L.D. Shank - Triad Farms PV-NonRes $ 30,000.00 $ 750.00 $ - 10/6/2008 City of Dover PV-NonRes $ 40,820.00 $ 750.00 $ - 10/21/2008 Robert & Cynthia Hartman Geo-Res $ 1,800.00 $ 135.00 $ - 10/21/2008 Robert Varipapa Geo-Res $ 2,400.00 $ 180.00 $ - 2/27/2009 David Jump PV-Res $ 15,000.00 $ 750.00 $ - 2/27/2009 Jakob Seren PV-Res $ 15,000.00 $ 750.00 $ - 2/27/2009 William Sweet PV-Res $ 15,000.00 $ 750.00 $ - 3/31/2009 LD Shank - Triad Farms SHW-NonRes $ 3,000.00 $ 225.00 $ - 3/31/2009 Warren & Joan Seaver Geo-Res $ 3,000.00 $ 225.00 $ - 4/22/2009 William Sweet SHW-Res $ 3,000.00 $ 225.00 $ - 4/28/2009 State of DE/DNREC - DE National PV-NonRes $ 30,000.00 $ 750.00 $ - 4/29/2009 Delaware Primary Care, LLC PV-NonRes $ 30,000.00 $ 750.00 $ - 9/11/2009 NCALL PV-NonRes $ 30,000.00 $ 750.00 $ - 9/11/2009 D.Brian Beckman Geo-Res $ 2,000.00 $ 150.00 $ - 9/21/2009 LSKC Dover, LLC - Kids Cottage PV-NonRes $ 29,925.00 $ 750.00 $ - 10/5/2009 Mark F. Boller Geo-Res $ 3,000.00 $ 225.00 $ - 10/5/2009 John Welgan PV-Res $ 15,000.00 $ 750.00 $ - 11/4/2009 LSKC LLC/ Kids Cottage Geo-NonRes $ 12,000.00 $ 750.00 $ - 3/25/2010 James G. McGiffin Jr. & Kathleen Geo-Res $ 3,000.000 $ 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 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 Total $ 525,863.25 $ 24,316.32 $ 1,695.00 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 Approved Pending Completion Elizabeth Murphey School Geo - NonRes $ 3,700.00 $ 277.50 Approved Pending Completion Elizabeth Murphey School Geo - NonRes $ 3,700.00 $ 277.50 Approved Pending Completion Rex Bell Geo - Res $ 2,300.00 $ 172.50 Total $ 9,700.00 $ 727.50 ENERGY DEPOT FEES SEPA Fees Paid Fee Period Amount Date Measure Cost 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 1/24/2014 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 Sept, Oct, Nov 2014 Dec 14, Jan, Feb 2015 Total Paid $ 51,825.38 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 All of July 2014 GEF Payment All of Aug 2014 GEF Payment All of Sept 2014 GEF Payment All of Oct 2014 GEF Payment All of Nov 2014 GEF Payment All of Dec 2014 GEF Payment All of Jan 2015 GEF Payment All of Feb 2015 GEF Payment All of March 2015 GEF Payment $ 336,340.83 Total Collections

City of Dover Electric Revenue Fund FY14 - White Oak Solar Park Incremental Cost Original July August September October November December January February March April May June YTD Budget Power Supply & Generation Dover Sun Park - Energy $ 187,421 $ 176,372 $ 204,852 $ 120,839 $ 99,447 $ 64,684 $ 82,605 $ 101,681 $ 137,856 $ 204,781 $ 206,943 $ 233,552 $ 1,821,035 $ 1,565,800 Dover Sun Park - REC's 43,005 38,516 42,894 25,307 20,875 13,583 17,301 21,304 28,882 42,751 43,323 - 337,741 300,000 Total Power Supply Cost 230,426 214,888 247,746 146,146 120,322 78,267 99,906 122,985 166,738 247,532 250,266 233,552 2,158,776 1,865,800 Non-Solar Power Supply Cost (180,227) (154,545) (154,590) (100,770) (79,066) (52,006) (146,406) (90,909) (105,944) (156,611) (150,227) (151,061) (1,522,362) (1,556,286) Incremental Energy Cost $ 50,199 $ 60,343 $ 93,156 $ 45,376 $ 41,256 $ 26,261 $ (46,500) $ 32,077 $ 60,794 $ 90,921 $ 100,039 $ 82,491 $ 636,414 $ 309,514 Revenues Customer Sales - Electricity (9,404) (7,389) (7,538) (7,662) (7,721) (8,019) (8,071) (7,950) (7,648) (7,632) (8,607) (9,423) (97,064) (26,300) Rent Receipts (14,446) - - (14,446) - - (14,807) - (34,450) - (14,807) - (92,956) (58,300) Total Revenues (23,850) (7,389) (7,538) (22,108) (7,721) (8,019) (22,878) (7,950) (42,098) (7,632) (23,414) (9,423) (190,020) (84,600) Incremental Sun Park Cost $ 26,349 $ 52,954 $ 85,618 $ 23,268 $ 33,535 $ 18,242 $ (69,378) $ 24,127 $ 18,696 $ 83,289 $ 76,625 $ 73,068 $ 446,394 $ 224,914 MWh Purchased/Generated - Solar 2,052.584 1,815.656 2,000.128 1,179.844 970.972 631.556 806.536 992.788 1,345.984 1,999.428 2,020.536 2,280.340 18,096.352 18,159.000 MWh $ Solar Energy $ 91.31 $ 97.14 $ 102.42 $ 102.42 $ 102.42 $ 102.42 $ 102.42 $ 102.42 $ 102.42 $ 102.42 $ 102.42 $ 102.42 $ 100.63 $ 86.23 Solar REC's MWh 307.000 272.000 300.000 177.000 146.000 95.000 121.000 149.000 202.000 299.000 303.000 - 2,371.000 MWh $ Solar REC (one month lag)* $ 140.08 $ 141.60 142.98 142.98 142.98 142.98 142.98 142.98 142.98 142.98 142.98 $ - $ 142.45 MWh $ Non-Solar Energy $ 87.81 $ 85.12 $ 77.29 $ 85.41 $ 81.43 $ 82.35 $ 181.52 $ 91.57 $ 78.71 $ 78.33 $ 74.35 $ 66.25 Note: Solar REC's are one month behind due to the time the invoice is received.