Attachment

UTILITY COMMITTEE AGENDA REVISED TO INCLUDE A NEW ITEM #1 FEBRUARY 10, 2014 - 5:30 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. McKee Run Units 1 and 2 - 2017-2018 Capacity Auction (Staff recommends removing Units 1 and 2 from service)(Due to time constraints, this item has been placed on the council agenda for the meeting being held later in the evening) 2. Dedication of Water and Wastewater Infrastructure - The Grande (Staff recommends acceptance of water and wastewater infrastructure within the public utility easement in The Grande apartment complex. Dedication is to include all of the referenced water and wastewater infrastructure.) 3. Dedication of Rights-of-Way and Public Infrastructure - Farthing Woods (Staff recommends acceptance of rights-of-way and public infrastructure in the Farthing Woods subdivision. Dedication is to include all of the referenced public improvements.) 4. Quarterly Review of Utility Related Capital Investment Plan (CIP) (Electric and Water/Wastewater) (Committee action not required) 5. TEA/NAES Report (December) (Staff recommends acceptance of the report) 6. Updates (Committee action not required on the items listed below) 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 7. Adjournment by 7:00 p.m. /tm S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Committee-Agendas\2014\02-10-2014 UTILITY REVISED.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.

EXCERPT - REGULAR COUNCIL MEETING OF DECEMBER 9, 2013 The following is an excerpt of the Regular Council Meeting minutes of December 9, 2013: UTILITY COMMITTEE REPORT - NOVEMBER 25, 2013 The Utility Committee met on November 25, 2013 with Chairwoman Williams presiding. Electric Supply & Generation Members were provided information regarding Electric Supply and Generation, as follows: McKee Run Units 1 & 2 - Cost/Benefit Analysis Mr. Scott Koenig, City Manager, reviewed a Presentation - Cost/Benefit Analysis for City of Dover for McKee Run Units 1 & 2, as prepared by Mr. Robert Trinnear, The Energy Authority (TEA). Referring to Slide 13, Mr. Blakeman questioned if there were a means of quantifying the risk of operational failure. Responding, Mr. Koenig stated that he would contact representatives of both TEA and North American Energy Services (NAES) to obtain this information. In response to Mr. Blakeman with reference to Slide 14, Mr. Koenig stated that borescope inspection logs did not indicate any required repairs and/or improvements that were not already included in the City’s Capital Improvement Plan (CIP). Based on current knowledge, he assured members that the only repairs and/or improvements anticipated were those listed in the CIP. Responding to Mrs. Williams regarding the cost of “mothballing” these Units, Mr. Koenig stated that TEA and NAES had been requested to provide a price; however, staff anticipated that this amount would be costly (in the high six to low seven figure range) due to asbestos and other issues associated with the Units. Mr. Snaman questioned if the new power plant (Calpine) could affect the details regarding Units 1 and 2. Responding, Mr. Koenig explained that if the City entered into a purchase power agreement with Calpine, the City could replace the capacity of Units 1 and 2 with capacity from the Calpine Project, which would be a negotiated item and was scheduled for discussion later in the meeting, under Item #1C. Mrs. Williams relayed concern with proceeding since there were so many uncertainties. Mr. Kirk Betts, Betts & Holt LLP, the City’s Energy Attorney, stated that there was not as much uncertainty as there appeared to be but there were several risks. He explained that some life extensions were previously done to Units 1 and 2 to keep them “alive;” however, prior to the Calpine project, the lease arrangement at the Garrison Tract included the opportunity to purchase 50 MW of capacity based on the belief that Units 1 and 2 would not survive. He stated that the Units are not as reliable as needed, which poses a risk. When the Units are supposed to come up and they do not, the City is penalized financially as well as with regard to reserve requirements and does not get the capacity credits needed. While these costs have not yet been quantified, they exist. He advised members that another risk was the capacity price of $119 per megawatt day (MWd) which was expected to be in the range of $150, $180, and $200 per MWd, but noted that this was not fully quantified because the PJM market only extends out three (3) years. He explained that this type of spread reduces the value of the plant and, with the addition of the costs for operating those Units including the NAES costs and the capital costs indicated in the CIP, there is a very low margin.

EXCERPT - CITY COUNCIL MEETING OF DECEMBER 9, 2013 PAGE 2 With a low margin area of approximately $250,000, for example, the City would be totally at risk and one (1) or more operational failure or forced outage could result in the City being “in the hole.” While these numbers had not been quantified, he explained that they appear more and more threatening in terms of the value of the plant. Mr. Betts explained that another issue with old units such as these is that spare parts are not available and must be manufactured. He explained that manufacturing parts for an antique piece of equipment costs more and the value is not recovered; therefore, the cost just to repair Units 1 and 2 would be extraordinarily high. He reminded members that Units 1 and 2 were being kept for capacity plays, and when the capacity market goes down, the value disappears. Although the City does not need the Units for energy, they must be able to operate. He noted that the heat rate for these Units is very high, at least 13,000 btu’s per kilowatt hour, whereas the competing Calpine unit is approximately half of that. Therefore, the Units are a non-competitive resource that the City pays a lot of money for in order to have capacity and the value is continuously decreasing. While not fully quantified, these are the real risks involved with these two (2) Units. Responding to Mrs. Williams, Mr. Betts explained that maintenance for Units 1 and 2 should have been done gradually over time but was deferred in previous years to avoid the additional capital cost, which is the reason for the major $2.4M “hit” in budget for Fiscal Year 2018. He stated that the capacity market has dropped significantly, and the PJM capacity market has many components. He advised members that Converge, an Arrow Electronic Company, has been working, primarily with refrigeration, to find ways to replace capacity in the marketplace by allowing customers to go offline for a couple of minutes at a time. In the past, customers had generation in reserve or brought up generation to meet the voltage requirements; however, since customers are able to meter the load precisely and changes are computerized, they are able to go offline and reduce load instead of bringing capacity on. He stated that last summer in this region, more than 1,000 MW(the amount of a nuclear plant) were taken offline voluntarily by customers who received a notice the day before indicating if they went offline the next day between certain hours, they would be compensated a certain amount per kilowatt hour not used, which had a huge impact on the marketplace. The current market is very different and continuously changing; therefore, the way in which customers invest and adapt to the changes are also different. Mr. Betts expressed his opinion that the market is not fixed but in some areas it is very tight; for example, in New Jersey the current capacity price is almost $300 per MWd, whereas in Dover it has dropped. He explained that the Garrison Plant’s 300 MW has a huge impact on costs on the Delmarva Peninsula because it is gas operated, fast, has relatively low personnel costs, and can bid into the market very aggressively. In regard to transmission costs, Mr. Betts explained that there has been a huge amount of transmission expansion in PJM, which has resulted in a reduction of the number of power plants constructed. It is a very dynamic market and, with 13,000 heat rate units, the City must consider whether, even if investment were made in Units 1 and 2, there would be value going forward and how much value that investment would have in the next five (5) to 10 years. Mrs. Donna Mitchell, Controller/Treasurer, advised members that the 2016/2017 forecast was completed last May and, at that time, the capacity price was $193 per MWd. The price was now at $119 per MWd; therefore, she stated that the capacity revenue would change accordingly. She noted

EXCERPT - CITY COUNCIL MEETING OF DECEMBER 9, 2013 PAGE 3 that a leak on a gasket on Unit 1 had to be repaired last year and the costs were over budget. In addition, she expressed concern regarding costs involving Unit 3. She stated that it had been borescoped and will be opened up for repair. This was scheduled as a three (3) year project which started with a $1.21M budget for the turbine repair and generator; however, the bids received for the turbine were excessive, so the generator was done separately at a cost of $276,000. The costs for the turbine repairs for Unit 3 were currently up to $1.6M, and she noted that when it is opened, additional repairs may be required which would increase the costs. In response to Mr. Perza, Mrs. Mitchell stated that staff’s recommendation would not include bidding Units 1 and 2 in the PJM market beyond Fiscal Year 2017 since staff anticipated a joint agreement with Calpine or another capacity agreement to pick up 34 MW. She confirmed that it was staff’s recommendation not to fund capital improvements to bring the Units up to current standards and not to fund these Units beyond the next three (3) years. If the Units began to fail in the next year or two (2), she stated that the City would have the option to pull the Units out of the PJM market instead of investing capital into them; however, the City would have to pay for the capacity and pay a forced outage penalty if the Units went down when scheduled to run. In order to meet the December 1, 2013 deadline, it was staff’s plan to bid the Units into the capacity auction for the 2017/2018 planning year at $311per MWd to ensure they do not get called on and the City recoups the money, as recommended by TEA. Noting that the City was obligated to keep Units 1 and 2 operating since they have been included in the auction for the next couple of years, Mr. Slavin questioned if the Units would be revenue positive to the City based on the assumption that the market does not completely bottom out on the capacity side. Responding, Mrs. Mitchell confirmed that they would be revenue positive through Fiscal Year 2017 based on the analysis. She indicated that if the Units were unavailable to run when required, the City would be able to decide whether or not to pay for repairs at that time. Mr. Slavin questioned the net effect on the City’s revenue if it was decided not to keep Units 1 and 2 online beyond 2018. In response, Mrs. Mitchell stated that staff had only forecasted out to the 2018 PJM year; however, according to Mr. Betts, the replacement capacity costs would define whether the City was “in the money or not” for those Units. Responding to Mr. Blakeman, Mrs. Mitchell referred to the projected incremental operating costs indicated on Page 19 of the presentation and indicated her opinion that the $1M amount could decrease more since staff was currently negotiating contracts. Staff recommended, for the short term, that Units 1 and 2 not be offered into PJM’s capacity auction for the 2017/18 delivery year; that a comprehensive analysis be performed that lays out all the decision options for the City of Dover; that a similar analysis on other parts of the generation portfolio be completed; and that all supply options be surveyed, including new generation projects in and around Dover and Power Purchase Agreement (PPA) opportunities. Mr. Perza questioned the future impact on revenues if these Units are shut down, irrespective of how much it would cost to get the turbines up and running, and how members could make an assessment and final decision regarding this matter if staff had not planned beyond 2017. Responding,

EXCERPT - CITY COUNCIL MEETING OF DECEMBER 9, 2013 PAGE 4 Mrs. Mitchell stated that one (1) of the factors to consider in determining whether the Units should be shut down or not would be the capacity auction, as well as the figures received from TEA. She noted that if the City can obtain the capacity cheaper from Calpine, it may not be advantageous to keep Units 1 and 2 running. Elaborating, Mr. Betts indicated that there were a lot of “moving pieces,” one (1) of which was the renegotiation of the NAES Agreement, which may lower operating costs. The other was whether the City would be able to have Garrison or some other entity buy replacement capacity, noting that if the City were able to obtain a longer-term offer, it would provide a benchmark price to compare with the cost to operate the Units. Both of these were on a relatively “fast track,” which would allow for a longer-term budget analysis for members to review. Mr. Betts stated that it is an imperfect system. In a dynamic market, no one knows what the energy prices will be in four (4) years, but the hope is that energy will still be consumed at a consistent rate. It is known that the capacity market is changing, so staff, including himself, must consider the best case, examine the alternatives of keeping the Units running, and make projections based on historic costs versus replacement capacity. It was his opinion that this would be the basis for the estimate built into the City’s overall operating budget for the utility. Mrs. Williams questioned whether Mr. Betts had any concern regarding negotiating an agreement with Calpine since the City incurred great expense and gave land to them. Responding, Mr. Betts stated that he and staff would do their best to hold Calpine to the terms of the contract, which provided for at least 50 MW at a cost that was established as the actual construction costs less the development costs. If Calpine is willing to abide by the contract terms, he believed there could be an opportunity for negotiation that may be favorable for the City. As a competitive strategy, he stated that the City should also consider other available capacity. He stated that the City not only offered the benefit of the land provided to Calpine but can also provide constant cash flow, which they cannot necessarily get from PJM. He also suggested that the City use its monopoly power as a water supplier to encourage negotiation. In response to Mrs. Williams, Mr. Betts confirmed that Calpine does not have internal “inside the fence” capacity, which could also effect negotiations. Mr. Betts advised members to consider the cost and value of the City’s reliability to “island” the City, notwithstanding occurrences in the region. He stressed the importance of the comprehensive analysis proposed by TEA, and that consideration be given to the reasons the City is in the municipal utility business, including reliability, costs, and the attractiveness of the City to outside potential buyers. He stressed that reliability is critical and if it were desired to bring in a data center, as was discussed in previous years, reliability must be at 99.9%. He stated that, with PJM, there had been huge investments in transmission that was not in existence 10 years ago. He noted that there are many rules that apply to the City, in regard to reliability under requirements with PJM and this zone, that have federal implications. The current environment for reliability is very different than it was 10 - 15 years ago, which should be taken into account when considering pricing and value for internal versus external generation. In response to Mr. Perza, Mr. Koenig stated that, to his knowledge, the City had not had a negative cash flow similar to what was projected for Fiscal Year 2017/2018 since contracting with PACE, approximately 15 years ago.

EXCERPT - CITY COUNCIL MEETING OF DECEMBER 9, 2013 PAGE 5 Responding to Mr. Perza, Mr. Koenig stated that the Units would last as long as the City would be willing to invest in maintenance, which would depend upon economic feasibility. It was staff’s opinion that, at this point, maintaining the Units would probably not be in the City’s best interest financially. Mr. Blakeman stated that prior to his retirement from the City of Dover, approximately 10 years ago, all similar units that were built in 1962 had been retired. Mr. Betts suggested that a comparison of the costs to operate the Units (capital, operating, and gas) with the amount purchased through the PJM power grid or TEA, would provide an indication as to whether the Units should be maintained or not. He suggested that TEA be requested to provide this information to members for their consideration in making a determination. The Committee recommended approval of staff’s recommendations that, for the short term, Units 1 and 2 not be offered into PJM's capacity auction for the 2017/18 delivery year; that a comprehensive analysis be performed that lays out all the decision options for the City of Dover; that a similar analysis on other parts of the generation portfolio be completed; and that all supply options be surveyed, including new generation projects in and around Dover and Power Purchase Agreement (PPA) opportunities. [City Clerk’s Office Note: Subsequent to the meeting, members were provided a memorandum dated December 4, 2013, from Donna Mitchell, Controller Treasurer - Response to Questions, Utility Committee Meeting November 25, 2013, relating to this matter, as well as an Outage Status Report - Week 9, dated November 27, 2013.]. During the Council Meeting, Mr. Lynn stated his objections to the Utility Committee’s recommendation, explaining his opinion that not offering Units 1 and 2 into PJM’s capacity auction for the 2017/18 delivery year would be a tacit endorsement of the culture of neglect engendered by years of Council’s austerity budgets that have artificially kept the City’s tax rates low at the expense of the City’s necessary infrastructure. He reminded members that, as explained by the City’s Attorney, Mr. Betts, maintenance for Units 1 and 2 should have been done gradually over time but was deferred in previous years due to the additional capital costs, which was the reason for the major $2.4M hit in 2018. Mr. Lynn stated that, unfortunately, that the reality is that many City residents will soon learn that the bills are now coming due - parks and recreation facilities need to be demolished as a result of neglect, streets are not being paved, pump stations are aging, etc. Mr. Lynn noted that the City’s infrastructure was showing the signs of City Council’s decisions to defer necessary maintenance and the City had failed to provide preventative care throughout the years; therefore, he stated that he could not support the Committee’s recommendation. Mr. Dixon moved for approval of the Committee’s recommendations that, for the short term, Units 1 and 2 not be offered into PJM's capacity auction for the 2017/18 delivery year; that a comprehensive analysis be performed that lays out all the decision options for the City of Dover; that a similar analysis on other parts of the generation portfolio be completed; and that all supply options be surveyed, including new generation projects in and around Dover and Power Purchase Agreement (PPA) opportunities. The motion was seconded by Mr. Hare and carried by a roll call vote of six (6) yes (Dixon, Perza, Slavin, Hare, Hutchison, and Bonar), one (1) no (Lynn), and two (2) absent (Anderson and Williams).

EXCERPT - CITY COUNCIL MEETING OF DECEMBER 9, 2013 PAGE 6 VanSant Generating Station Capacity Increase - Cost/Benefit Analysis Mr. Scott Koenig, City Manager, reviewed a Presentation - Cost/Benefit Analysis for City of Dover - Update on VanSant Generating Station Capacity Increase. Staff recommended that staff be authorized to continue to proceed with project implementation and reassess economics after bids for project installation are received and before submitting an offer into PJM for the 2017/18 capacity auction on May 12, 2014, noting that PJM must be notified of intent to bid in Units 1 & 2 by March 1, 2014. Mr. Blakeman questioned whether staff had considered installing a waste heat recovery boiler to create a combined cycle unit. Responding, Mr. Koenig stated that it had been discussed previously; however, it was not included in the most recent reviews. He speculated that there must have been a technical or regulatory issue associated with it. Responding to Mrs. Williams regarding the Indian River Coal Plant, Mr. Koenig stated that it will have an effect on the market, which may have an indirect effect on the City; however, he was not aware of the time frame. The Committee recommended approval of staff’s recommendation. [City Clerk’s Office Note: Subsequent to the meeting, members were provided a memorandum dated December 4, 2013, from Donna Mitchell, Controller Treasurer - Response to Questions, Utility Committee Meeting November 25, 2013, relating to this matter, as well as an Outage Status Report - Week 9, dated November 27, 2013.] By consent agenda, Mr. Slavin moved for approval of the Committee’s recommendation, seconded by Mr. Hare and carried by a unanimous roll call vote (Anderson and Williams absent). Purchase Power Agreement - Calpine Mr. Scott Koenig, City Manager, advised members that staff intends to seek the assistance of Mr. Kirk Betts, Betts & Holt LLP, the City’s Energy Attorney, for discussions regarding a mutually beneficial contract arrangement for the potential Power Purchase Agreement (PPA) with Calpine. He stated that this information was provided for informational purposes only and that no further action was required at this time. Discussion - Joint Agreement with the Delaware Municipal Electric Corporation (DEMEC) for New Generation Mr. Scott Koenig, City Manager, explained that as a part of staff’s due diligence to examine the possibilities for replacing the capacity of Units 1 and 2, should they be taken out of service, staff intends to meet with the Delaware Municipal Electric Corporation (DEMEC) and/or another partner they may have, to discuss the potential for joint projects, such as capacity improvements, provided a Purchase Power Agreement (PPA) with Calpine cannot be arranged. He stated his preference for keeping the City’s options open moving forward and that he will keep Council updated in regard to all discussions.

EXCERPT - CITY COUNCIL MEETING OF DECEMBER 9, 2013 PAGE 7 In response to Mr. Blakeman, Mr. Koenig stated that staff would complete financial analyses on all of the available options, and the potential for DEMEC to own part of the City’s units would be open for discussion. Mr. Koenig stated that this information was provided for informational purposes only and that no further action was required at this time. Mr. Slavin moved for acceptance of the Utility Committee Report, seconded by Mr. Hare and carried with Mr. Lynn voting no. S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Committee-Packets\2014\UTILITY\02-10-2014\ORIGINALS\12-09-2013 Council Minutes Excerpt.wpd

ACTION FORM PROCEEDING: Utility Committee AGENDA ITEM: DEPARTMENT OF ORIGIN: Public Works DATE SUBMITTED: 1/31/14 PREPARED BY: Sharon J. Duca, P.E., Public Works Director / City Engineer SUBJECT: Dedication of Water and Wastewater Infrastructure – The Grande REFERENCE: N/A RELATED PROJECT: N/A APPROVALS: City Manager EXHIBITS: Attachment A – List of Water and Wastewater to be accepted by the City of Dover Attachment B – Map EXPENDITURE REQUIRED: $ N/A AMOUNT BUDGETED: $ N/A FUNDING SOURCE (Dept./Page in CIP & Budget): N/A TIME TIMETABLE: All water and wastewater infrastructure within the public utility easement will become the responsibility of the City of Dover upon acceptance by City Council. RECOMMENDED ACTION: Acceptance of water and wastewater infrastructure within the public utility easement in The Grande Apartment Complex. Dedication is to include all of the referenced water and wastewater infrastructure. BACKGROUND AND ANALYSIS Doveview Investors, LLC, responsible party for completing the water and wastewater infrastructure within the Grande Apartment Complex, has requested that all water and wastewater infrastructure within the public utility easement be dedicated to the City of Dover for permanent ownership and maintenance. Attachment A outlines the entire water and wastewater infrastructure associated with this complex. The total construction value of the infrastructure is $130,620. Attachment B shows the general location and configuration of the public utility easement. Doveview Investors, LLC completed construction of the infrastructure in accordance with City standards and specifications. After construction was completed, City staff inspected the water and wastewater infrastructure and developed a list of repairs to be made to meet the City of Dover Standards and Specifications for Public Works Construction. As of this date, all work required by the Public Works Director has been completed. A one (1) year Maintenance Agreement and a Release of Liabilities will be submitted as part of the dedication process. Required as-built drawings of the infrastructure as well as videos of the sanitary sewer mains have been provided to staff.

DEDICATION OF WATER & WASTEWATER INFRASTRUCTURE THE GRANDE ATTACHMENT A The following is a list of all water and wastewater infrastructure which are to be accepted by the City of Dover: Sewer Utility Infrastructure (Construction Value = $52,140 ): 8” SDR-35 PVC Sanitary Sewer Main - 1,570 l.f. 6” SDR-35 PVC Sanitary Sewer Laterals - 40 l.f. 4' Diameter Sanitary Sewer Manholes - 6 ea. (36 v.f.) Water Utility Infrastructure (Construction Value = $78,480 ): 8” Ductile Iron (Class 52 Cement Lined) Water Main - 1,890 l.f. 6” Ductile Iron (Class 52 Cement Lined) Water Main - 110 l.f. 3” SDR-9 Water Service Lines - 60 l.f. (6 services) 8” Gate Valve - 6 ea. 6” Hydrant Valve - 6 ea. Fire Hydrants - 6 ea.

ATTACHMENT B The Grande: Water & Wastewater Infrastructure . ! to be Dedicated to the City of Dover % LhC" . ! Í B G ! . B Í ¼ , Í . B G ! Í ! ­ ! B Í ¼ , Í .Í B ! ! ­ ! b b " " !, ­ ![ \Í ! . ¼ ÍG B . ! À" Î Í G . ! . ! B B Í . ! Í[ B\ À Î " \ [ À" Î G ! . ! . B Í .B G !Í . ! BÍ À" Î! . Í B Í[ B ! \­ ! . ! B Í B Í B Í . ! . ! B ÍÍ . G ! . ! ÍBB . ! . ! . ! ! . ÍG . ! B B ÍG! . B ÍG . ! B ÍG . ! 0 60 120 240 Feet ¯ Legend G ! . 1500 GPM " Dead End C h P ! ± ! Curb Stop/Meter Pit Water Main 8" Sewer Line 24" ! . Sanitary Manholes 1000 - 1499 GPM 1" 10" 10" 27" Force Main G . ! b " Reducer 2" 12" G ! . 500 - 999 GPM À" Î Service Connection " ! b ± Curb Stop/House 12" 30" Ú Pump Station [ Below 500 GPM 3" 14" 15" 35" G . ! Dover Parcels ! ­ ! Meter Pit ¼ , Í Curb Stop 4" 16" 16" 36" Date Printed: December 6, 2013 File: m:\gis_data\projects\tech_mxds \ Sanitary Sewer Service Line B [ Í Hydrant Valve % L Blow Off 6" 20" 18" 4" \street_dedication_map_lexington_glen_2 B Í Division Valve Hydrant Lead 20" 6" Department: Public Works GIS 21" 8" City of Dover, Delaware

ACTION FORM PROCEEDING: Utility Committee AGENDA ITEM: DEPARTMENT OF ORIGIN: Public Works DATE SUBMITTED: 1/31/14 PREPARED BY: Sharon J. Duca, P.E., Public Works Director / City Engineer SUBJECT: Dedication of Rights-of-Way and Public Infrastructure – Farthing Woods REFERENCE: N/A RELATED PROJECT: N/A APPROVALS: City Manager EXHIBITS: Attachment A – List of Public Improvements to be accepted by the City of Dover Attachment B – Map EXPENDITURE REQUIRED: $ N/A AMOUNT BUDGETED: $ N/A FUNDING SOURCE (Dept./Page in CIP & Budget): N/A TIME TIMETABLE: All infrastructure improvements will become the responsibility of the City of Dover upon acceptance by City Council. RECOMMENDED ACTION: Acceptance of rights-of-way and public infrastructure in the Farthing Woods Subdivision. Dedication is to include all of the referenced public improvements. BACKGROUND AND ANALYSIS Ashburn Homes, Inc., responsible party for completing the public infrastructure within the Farthing Woods Subdivision, has requested that all public infrastructure improvements be dedicated to the City of Dover for permanent ownership and maintenance. Attachment A outlines all of the public improvements associated with this development. The total construction value of the public improvements is $261,262. Attachment B shows the general location and configuration of the subject rights-of-way. The Ashburn Homes, Inc. completed construction of the improvements in accordance with City standards and specifications. After construction was completed, City staff inspected the public improvements and developed a list of repairs to be made to meet the City of Dover Standards and Specifications for Public Works Construction. As of this date, all work required by the Public Works Director has been completed. A one (1) year Maintenance Agreement and a Release of Liabilities will be submitted as part of the dedication process. Required as-built drawings of the infrastructure as well as videos of the sanitary sewer mains have been provided to staff.

DEDICATION OF RIGHTS-OF-WAY AND PUBLIC INFRASTURCTURE FARTHING WOODS ATTACHMENT A The following is a list of all public improvements which are to be accepted by the City of Dover: Sewer Utility Infrastructure (Construction Value = $56,309 ): 8” SDR-35 PVC Sanitary Sewer Main - 1,295 l.f. 6” SDR-35 PVC Sanitary Sewer Laterals - 590 l.f. (17 laterals) 4' Diameter Sanitary Sewer Manholes - 6 ea. (49 v.f.) Water Utility Infrastructure (Construction Value = $85,562 ): 8” Ductile Iron (Class 52 Cement Lined) Water Main - 1,520 l.f. 6” Ductile Iron (Class 52 Cement Lined) Water Main - 62 l.f. 1” Polyethylene Water Service Lines - 590 l.f. (17 services) 8” Gate Valve - 7 ea. 6” Hydrant Valve - 2 ea. Fire Hydrants - 2 ea. Storm Water Infrastructure (Construction Value = $30,783 ): Catch Basins - 5 ea. 15” Type III Reinforced Concrete Pipe - 508 l.f. 18” Type III Reinforced Concrete Pipe - 134 l.f. 24” Type III Reinforced Concrete Pipe - 60 l.f. Flared End Sections (Concrete) - 3 ea. Street Infrastructure (0.1642 miles) (Construction Value = $88,608 ): Hobbyhorse Court Station 0+00 to Station 8+67 867 l.f.

ATTACHMENT B Hobbyhorse Court Right of Way to be Dedicated to the City of Dover M ap l e Glen Dr bb Ho yh orse Ct 0 50 100 200 Feet Legend ¯ Date Printed:January 31, 2014 File: m:\gis_data\projects\tech_mxds \street_dedication_map_farthing_woods Dover Parcels Department: Public Works GIS City of Dover, Delaware Right of Way to be Dedicated

1 of 4 City of Dover Capital Investment Plan Project Tracking Report Quarterly Report as of December 31, 2013 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 $ 2,961,200 $ 130,300 $ 4,734,000 $ 518,300 $ 8,343,800 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 - - 4,129,900 - 4,129,900 Other State/Federal Grants 165,000 - - - 165,000 Impact Fee Reserves - - 390,000 - 390,000 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 1,278,300 - - 1,278,300 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) $ 5,066,000 $ 1,518,400 $ 12,842,100 $ 5,902,100 $ 25,328,600

2 of 4 City of Dover General Fund - Major CIP Projects Quarterly Report as of December 31, 2013 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 $ 20,447,527 $ 21,573 99.9% $ - $ 411,500 $ 73,428 $ 338,072 17.8% Complete LEED Certification complete in FY 2014 3 Totals - FY09 $ 18,200,000 $ 20,469,100 $ 20,447,527 $ 21,573 99.9% $ - $ 411,500 $ 73,428 $ 338,072 17.8% 4 5 FY 2013 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 2,000,000 124,642 1,875,358 6.2% - 1,936,100 60,705 1,875,395 3.1% In process Financed by Future Capacity Reserve 9 ST1405 G FY 2012 MSA - Capital non-safety - 265,215 52,295 212,920 19.7% - 251,200 38,332 212,868 15.3% In process Restricted MSA Funding 10 11 Totals - FY 2013 $ 1,954,000 $ 3,709,715 $ 183,932 $ 3,525,783 5.0% $ - $ 2,187,300 $ 99,037 $ 2,088,263 4.5% 12 13 FY 2014 14 --- Vehicles & Equipment $ 963,800 $ 963,800 $ 258,458 $ 705,342 26.8% $ 908,800 $ 963,000 $ 258,458 $ 704,542 26.8% In process 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 10,000 8,865 1,135 88.7% 10,000 10,000 8,865 1,135 88.7% In process 19 PD1402 Totaled Vehicle Replacement 20,000 20,000 - 20,000 0.0% 20,000 20,000 - 20,000 0.0% 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 30,000 - 30,000 0.0% 30,000 30,000 - 30,000 0.0% 22 ST1402 FY 2014 Concrete Program 70,000 70,000 2,680 67,320 3.8% 70,000 70,000 2,680 67,320 3.8% In process Bids going out in February 23 ST1403 B/L FY 2014 Bonded Street Program 740,000 690,000 335,445 354,555 48.6% - 692,100 335,445 356,655 48.5% In process Approximately 70% complete 24 PD1302 Police Parking Lot 50,000 51,800 - 51,800 0.0% - 51,800 - 51,800 0.0% 25 ST1404 Village of Westover IV 264,800 264,800 - 264,800 0.0% - 264,800 - 264,800 0.0% 26 27 Totals - FY 2014 $ 2,514,100 $ 2,465,900 $ 843,962 $ 1,621,938 34.2% $ 1,404,300 $ 2,467,200 $ 843,962 $ 1,623,238 34.2% 28 29 30 Grand Totals $ 22,668,100 $ 26,644,715 $ 21,475,421 $ 5,169,294 80.6% $ 1,404,300 $ 5,066,000 $ 1,016,427 $ 4,049,573 20.1% 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. G = Grant funded project B/L = To be financed through bonds or commercial loan; Projects will be completed through CT Fund, therefore the loan proceeds will be transferred from Capital Fund into the Community Transportation Fund;

3 of 4 City of Dover Community Transportation & General Fund Street Funds - Major CIP Projects (Final) Quarterly Report as of December 31, 2013 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 Authorization from Legislature to reallocate to South Street and project should finish by end of 2 CT0212 South Street paving $ 80,400 $ 80,400 $ - $ 80,400 0.0% $ - $ 80,400 $ - $ 80,400 0.0% year 3 Totals $ 80,400 $ 80,400 $ - $ 80,400 0.0% $ - $ 80,400 $ - $ 80,400 0.0% 4 5 FY 2009 6 CT0555 Little League Park paving $ 11,600 $ 11,600 $ - $ 11,600 0.0% $ - $ 11,600 $ - $ 11,600 0.0% Re-program for signage 7 Totals $ 11,600 $ 11,600 $ - $ 11,600 0.0% $ - $ 11,600 $ - $ 11,600 0.0% 8 9 FY 2007 10 CT0708 E. Water Street Brick $ 65,000 $ 65,000 $ - $ 65,000 0.0% $ - $ 65,000 $ - $ 65,000 0.0% Specialty contract needed 11 Totals $ 65,000 $ 65,000 $ - $ 65,000 0.0% $ - $ 65,000 $ - $ 65,000 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% $ - $ 22,000 $ - $ 22,000 0.0% park sidewalk 15 Totals $ 22,000 $ 22,000 $ - $ 22,000 0.0% $ - $ 22,000 $ - $ 22,000 0.0% 16 17 FY 2012 18 CT1201 M North Street Roundabout $ 500,000 $ 572,200 $ 228,427 $ 343,773 39.9% $ - $ 572,200 $ 228,427 $ 343,773 39.9% 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 $ 1,400,000 $ 1,995,700 $ 751,704 $ 1,243,996 37.7% $ - $ 572,200 $ 228,427 $ 343,773 39.9% 21 22 FY 2013 23 CT1317 Wesley College Phase I 148,600 148,600 107,335 41,265 72.2% $ - $ 109,300 $ 68,079 $ 41,221 62.3% Complete awaiting bill Transfer to General Fund for Security Prior year unused GF Allocation 24 MR1301 Cameras 102,400 102,400 48,240 54,160 47.1% - 54,200 - 54,200 0.0% moved to Capital Project Fund. 25 CT1369 Bayard Ave, Orchard Ave & Morris Dr. 130,000 289,378 - 289,378 0.0% - 289,400 - 289,400 0.0% FY 2013 CT agreement 26 $ 381,000 $ 540,378 $ 155,575 $ 384,803 28.8% $ - $ 452,900 $ 68,079 $ 384,821 15.0% 27 28 FY 2014 29 CTxxxx Unapplied CT Projects (placeholder) $ 500,000 $ 500,000 $ - $ 500,000 0.0% $ 500,000 $ 245,200 $ - $ 245,200 0.0% Future CT Agreements 30 ST1401 American Ave - 62,800 62,800 - 100.0% - 62,800 62,800 - 100.0% Prior year unused GF Allocation 31 Unallocated prior year Gen Fund Alloc. - 6,300 - 6,300 0.0% - 6,300 - 6,300 0.0% Prior year unused GF Allocation. 32 $ 500,000 $ 569,100 $ 62,800 $ 506,300 11.0% $ 500,000 $ 314,300 $ 62,800 $ 251,500 20.0% 33 34 Grand Totals $ 2,460,000 $ 3,284,178 $ 970,079 $ 2,314,099 29.5% $ 500,000 $ 1,518,400 $ 359,306 $ 1,159,094 23.7% 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; Projects will be completed through CT Fund, therefore the loan proceeds will be transferred from Capital Fund into the Community Transportation Fund;

4 of 4 Water/Wastewater Improvement & Extension Fund - Major CIP Projects Quarterly Report as of December 31, 2013 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 $ 84,974 $ 2,471,026 3.3% $ 390,000 $ 2,473,500 $ 2,425 $ 2,471,075 0.1% 3.2% Design & land purchase underway 3 WD0805 M Piney Point Well 398,800 1,096,200 1,026,239 69,961 93.6% - 580,000 510,100 69,900 87.9% 85.0% Awarded bid JJID Feb. 2013 4 Totals - FY 2008 $ 4,595,400 $ 3,652,200 $ 1,111,213 $ 2,540,987 30.4% $ 390,000 $ 3,053,500 $ 512,525 $ 2,540,975 16.8% 5 6 FY 2009 7 WQ0907 SL/O Rt. 13 Water Main $ 1,023,700 $ 2,326,000 $ 2,173,195 $ 152,805 93.4% $ - $ 152,800 $ - $ 152,800 0.0% 100.0% Complete 6/30/13, in Litigation 8 9 FY 2010 10 WW1010 I Tar Ditch Interceptor Upgrade $ 518,200 $ 518,200 $ 49,856 $ 468,344 9.6% $ - $ 486,300 $ 17,884 $ 468,416 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 $ 2,000,000 $ 241,797 $ 1,758,203 12.1% $ - $ 3,116,000 $ 133,635 $ 2,982,365 4.3% In Process meeting to follow. Project awarded, 95% design, 14 WD1302 M Garrison Farm Storage Tank 1,828,000 3,000,000 212,596 2,787,404 7.1% - 4,022,400 - 4,022,400 0.0% In Process construction 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% - 406,900 - 406,900 0.0% year. 16 II1404 Basin #5 I & I Buck Drive - - - - 0.0% - 342,000 - 342,000 0.0% In Process Project under design, 60% complete. 17 II1309 Dover Downs PS Upgrade - 16,000 15,864 136 0.0% - 16,000 15,864 136 99.2% Complete Completed by September 2013 18 II1310 Puncheon Run PS Upgrade - 21,000 20,020 980 0.0% - 21,000 20,020 980 95.3% Complete Completed in July 2013 19 Totals - FY 2013 $ 4,656,000 $ 5,785,900 $ 512,885 $ 5,273,015 66.9% $ - $ 7,924,300 $ 169,519 $ 7,754,781 2.1% 20 21 FY 2013 All vehicles have been ordered, awaiting 22 --- Vehicles & Equipment $ 354,000 $ 354,000 $ 53,560 $ 300,440 15.1% $ 364,000 $ 153,600 $ 53,560 $ 100,040 34.9% In Process delivery #422 (2/6/14) Contractor completed one wellhead 23 WD1401 Wellhead Redevelopment 75,000 75,000 - 75,000 0.0% 75,000 75,000 - 75,000 0.0% In Process redevelopment, started on second. 24 WD1403 Emergency Generators 80,000 60,000 - 60,000 0.0% 80,000 60,000 - 60,000 0.0% In Process Generator ordered, delivery late Feb. 25 WW1401 Inflow/Infiltration Removal 1,003,800 1,003,800 - 1,003,800 0.0% 1,003,800 - - - 0.0% In Process Buck Drive 60% designed Design 95% complete, DelDOT to bid out 26 TBD Denny's Road Water Main - 33,200 - 33,200 0.0% - 33,200 - 33,200 0.0% In Process 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 - 34,800 0.0% - 34,800 - 34,800 0.0% no update 29 WQ1402 West Dover Connector - 11,000 - 11,000 0.0% - 11,000 - 11,000 0.0% 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 - 104,100 0.0% - 104,100 - 104,100 0.0% In Process February 2014 32 WW1205 Dover Brook Pump Station - 52,800 - 52,800 0.0% - 52,800 - 52,800 0.0% Bids due April 15, 2014. 33 WW1206 Brandywine Pump Station - 368,100 - 368,100 0.0% - 368,100 - 368,100 0.0% 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 - 30,000 - 30,000 0.0% - 30,000 - 30,000 0.0% Survey to begin in coming weeks. 36 WW1302 Lakeview PS - 52,000 - 52,000 0.0% - 52,000 - 52,000 0.0% Survey to begin in coming weeks. 37 WW1303 Westover PS - 65,000 - 65,000 0.0% - 65,000 - 65,000 0.0% Survey to begin in coming weeks. 38 II1401 Kent Ave. Repair - 75,000 - 75,000 0.0% - 75,000 - 75,000 0.0% In Process 95% complete Design continuing, out to bid April 2014 39 II1402 West Dover Connector - 33,100 - 33,100 0.0% - 33,100 - 33,100 0.0% 40 Totals - FY 2014 $ 2,417,800 $ 2,429,400 $ 53,560 $ 2,375,840 0.0% $ 2,427,800 $ 1,225,200 $ 53,560 $ 1,171,640 4.4% 41 42 Grand Totals $ 13,211,100 $ 14,711,700 $ 3,900,708 $ 10,810,992 26.5% $ 2,817,800 $ 12,842,100 $ 753,489 $ 12,088,611 5.9% Legend M = Multi-year project - a project with a specific schedule to occur over multiple years. R = Recurring project - a project that begins and ends each fiscal year and is re-budgeted to start over each fiscal year. SL = State Loan Project - construction phase is financed I = Impact Fee (partially) financed project O = Operating revenues

The Energy Authority, Inc. Monthly Management Committee Update – December 2013 January 27, 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 $258,397 over budget due to higher load and reactive services costs. Dover’s budgeted cost for all power supply (capacity AND energy) was $81.61/MWh. The actual cost of all power supply (capacity AND energy) was $82.77/MWh. The cost of energy alone was $49.07/MWh, versus a budgeted energy cost of $49.81. Dover’s hedge purchases totaled 45,600 MWh, which was 74% of the actual load. The budgeted hedge purchase totaled 31,680, which was 53% of the budgeted load. Dover’s power purchases from hedge transactions totaled $2,230,326. Purchases from PJM (energy and fees) totaled $1,349,134 with DA Energy purchases totaling $487,513 and Reactive Services Charges totaling $204,596. Dover’s total load was 61,756 MWh versus a forecasted load of 59,468 MWh. Dover’s planned energy purchase from the SunPark solar installation was 804 MWh. Dover’s actual energy purchase from the SunPark installation was 632 MWh. 1

Supply Source Summary: Supply Variance: Budget Actual Variance Gross Load 59,468 61,756 (2,288) Wholesale Load 58,664 61,124 (2,460) Hedged Volume (MWh) 31,680 45,600 (13,920) Unhedged Volume (MWh) 26,984 15,524 11,460 Dover SunPark Volume (MWh) 804 632 172 Renewable Energy Credits Volume 121 146 (25) Hedged Cost ($/MWh) $ 55.18 $ 48.91 $ 6.27 Unhedged Energy Cost ($/MWh) $ 42 $ 47 $ (5) Solar Energy Cost ($/MWh) $ 87 $ 102 $ (15) Energy Costs ($/MWh) $49.81 $49.07 $0.74 All‐in Costs ‐ Energy, Capacity and RECs ($/MWh) $81.61 $82.77 ($1.16) 2

B. Generation Summary: Dover generated 0 MWh in the month. Net generation revenue was $1,156,502 vs. a budget of $1,021,573. This delta was mainly due to lower plant O&M during the month. 3

Generation Breakdown: City of Dover's Wholesale Generation Net Generation Mwh 0.00 All In Generation Margin PJM - Economic and reliability dispatch (GEN) $ - PJM - Generation Capacity Credit (GEN) $ 1,329,125.00 PJM - Black Start & Transmission Losses (GEN) $ 57,984.10 Gas Purchases $ - Oil Purchases $ - Transport / Cash Out - Gross Margin $ 1,387,109.10 Production Margin PJM - Economic and reliability dispatch (GEN) $ - Gas Purchases $ - Oil Purchases $ - Transport / Cash Out - Gross Production Margin $ - $/Mwh All In Generation Margin $ - $/Mwh Generation Production Margin $ - 4

C. Emissions Summary: Emissions Allowance Summary through December 31, 2013 The CAIR units (McKee Run 3 & VanSant) did not operate during the month of December, so there were no additional emissions during this period. CAIR EMISSION ALLOWANCE SUMMARY SO2 NOx Allowances1 Date Action Allowances Seasonal Annual 1/1/09 2008 Carryover 3,240 0 0 1/1/09 2009 Allocation 2,723 53 80 2/1/10 2010 Allocation 2,039 50 78 1/1/11 2011 Allocation 1,988 49 78 4/1/11 2011 Reallocation 2 4 1/11/12 2012 Allocation 1,988 51 80 10/4/2012 2013 Allocation 1,988 49 76 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) 2 12/31/09 2009 Emissions (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) 2 12/31/12 2012 Emissions (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) REMAINING ALLOWANCES 11,053 50 174 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 administering the Clean Air Interstate Rule (CAIR). In response to an EPA appeal to the 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

U.S. Supreme Court, the Supreme Court heard arguments on December 10th, 2013. The Court did not indicate when it plans to release an opinion in the CSAPR case. In a related proceeding, at the end of 2013, Governors from eight Northeastern states petitioned EPA to add nine Southern and Midwestern states to the Ozone Transport Region (OTR). If the Supreme Court rules against EPA in the CSAPR case, EPA would need to act on the OTR petition within 18 months of its filing. 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 broker bids & offers: Mark-to-Market for CAIR Allowances (1/16/2014) Commodity $/Ton Tons Extended (Bid/Offer Avg.) Value SO2 Allowances (2009 & earlier) $ 1.38 5,089 $ 7,022 SO2 Allowances (2010-13) $ 0.625 5,964 3,727 NOx Allowances - Seasonal $18.00 50 900 NOx Allowances - Annual $40.00 174 6,960 TOTAL $18,609 Regional Greenhouse Gas Initiative The State of Delaware is a participant in the Regional Greenhouse Gas Initiative (RGGI). The City of Dover must comply with RGGI by surrendering carbon dioxide (CO2) allowances pursuant to the State of Delaware’s laws (Title 7, Chapter 60, Sub-Title II-A). Delaware 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 (12/31/2013) 1 2 3 4 5 6 7 8 CO2 Allowances Available 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 YTD 0 15,032 514 24,818 (8,726) 16,091 120,596 After 2013, Dover no longer receives allocations of RGGI allowances. The Cumulative Balance (column 8) – aka “Banked Allowances”) can be utilized for generation in future years (including 2013). 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 proposed changes have been included in previous monthly reports. With the release of the Updated Model Rule, the RGGI states now plan to revise their CO2 Budget Trading Programs through their individual state-specific statutory and regulatory processes. Each RGGI state seeks to complete their state specific processes such that the proposed changes to the program will take effect on January 1, 2014. 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. NOTE: The new RGGI rule includes a provision which will eliminate some portion of banked allowances in future years. TEA will be investigating the potential impact of this provision on Dover’s RGGI allowance bank. 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. 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

The most recent RGGI auction occurred on December 4, 2013; the auction cleared at $3.00/ton. The next auction will occur on March 5, 2014. RGGI futures settlement prices posted on Intercontinental Exchange (ICE) on January 21, 2014 ranged from $3.51 to $3.72/ton, depending settlement month. Based on the average Intercontinental Exchange prices for January 21, 2014 settlement ($3.59/ton), the value of Dover’s existing 120,596 ton RGGI allowance bank is $432,937. 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 October 2013, Dover has accumulated a total of 6,489 SRECS from these renewable energy resources. The nearest viable market for Dover’s SRECs is Pennsylvania. Pennsylvania’s January 2014 SREC auction cleared separately for 2011/2012 through 2013/2014 vintage allowances. Clearing prices and Dover’s SREC market value estimate are shown in the table below. Note that this is significantly higher than the value in in previously monthly reports where Pennsylvania auctions have generally been clearing in the $10 - $15 range. SREC Vintage Auction Clearing Price SREC Quantity Market Value (June 1 – May 31) $ 4.01 2010/2011 13 $ 52 (Aug-13 Auction) 2011/2012 $ 40.01 2,375 95,024 2012/2013 $42.51 2,725 115,840 2013/2014 $47.00 1,523 71,581 TOTAL 6,636 $282,497 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 recent discussion with DEMEC staff, this expiration provision is not likely to be of concern within the current compliance year. 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 8

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 December there were no reportable or lost time accidents or injuries. The facility has now gone 1,171 days without an OSHA recordable accident and 1,171 consecutive days without a lost time reportable accident. There were zero Environmental Notices of Violations issued and there were no Near Miss incidents. There were no dispatches for any of the Units for the month. Monthly Budget Variance – The actual expenses attributable to O&M of the two sites for the month of December were $230,607 against a budgeted amount of $342,782 for a favorable variance of $112,175 or 32.72%. The principal reason for the favorable variance was due to having one (1) payroll period expensed in this month instead of the two (2) payroll periods that were budgeted. E. Risk Management Summary: Forward power prices in PJM are higher than last month. Winter Natural Gas prices have rallied with the sustained below normal temperatures we have seen. The current projected cost of service is below: Blended Monthly Cost Change Power Year Hedge Ratio ($/MWh) ($/MWh) 2013‐14 76% $ 49.61 $ 0.44 2014‐15 60% $ 43.96 $ 0.11 2015‐16 35% $ 40.95 $ (0.05) 9

II. Budget Report Variance Report: Budget Actual Variance Dec-13 Dec 13 Gross Load 59,468 61,756 (2,288) Power Supply Hedged Energy $1,748,070 $2,230,326 ($482,256) PJM - Energy, Congestion & Losses $1,143,868 $735,062 $408,806 PJM - ARR, Transmission and Fees $395,000 $614,072 ($219,072) Dover SUN Park Energy $69,975 $64,684 $5,291 Dover SUN Park RECs $25,000 $20,875 $4,125 Management Fees $83,000 $83,000 $0 PJM - Capacity UCAP Obligated Purchased $1,388,224 $1,363,515 $24,709 Subtotal - Power Supply $4,853,137 $5,111,534 ($258,397) Power Generation O&M Plant O&M $343,132 $230,607 112,525 Subtotal Generation O&M 343,132.00 230,607.00 $112,525 Power Generation Production Margin PJM - Economic and reliability dispatch $0 $0 $0 Fixed Fuel and Transport Charges $0 $0 $0 Subtotal Generation Production Margin $0 $ - $0 Power Generation Non-Production Revenue PJM - Generation Capacity Credit ($1,329,125) $ (1,329,125) $0 Emissions Allowance Sales $0 $ - $0 PJM - Black Start & Transmission Losses ($35,580) $ (57,984) $22,404 Subtotal - Non-Production Revenue ($1,364,705) ($1,387,109) $22,404 SubTotal - All Generation (1,021,573) ($1,156,502) $134,929 Total - Utilities Cost $3,831,564 $3,955,031 ($123,468) Unit Costs Total - Power Supply $81.61 $82.77 ($1.16) Total - Power Generation ($17.18) ($18.73) $1.55 Final Cost of Service to City of Dover Ratepayers $64.43 $64.04 $0.39 10

Variance Analysis: Power Supply  Dover consumed 2,288 MWh more than forecast for the month.  PJM energy costs were lower than expected as less market purchases were required. Hedged costs were higher than forecasted due to an additional layering in of hedges. PJM Fees were well above budget, driven by large reactive services charges.  Hedges were placed at below budget levels, however higher market prices somewhat offset this benefit. Higher reactive services charges resulted in a net power supply cost of $82.77/MWh, $1.16/MWh above budget.  For the month, the city realized an unfavorable variance of $258,397 for power supply vs. the monthly budget.  Dover Sun Park generated 172 MWh less than forecast. Generation  Power generation had a favorable budget variance of $134,929.  Plant O&M expenses had a favorable budget variance of $112,525 for the month. 11

YTD Variance Report: Budget Actual Variance YTD YTD Gross Load 389,737 394,111 (4,374) Power Supply Hedged Energy $14,617,464 $16,144,150 ($1,526,686) PJM - Energy, Congestion & Losses $5,633,241 $4,219,490 $1,413,751 PJM - ARR, Transmission and Fees $2,370,000 $3,918,668 ($1,548,668) Dover SUN Park Energy $692,595 $853,617 ($161,022) Dover SUN Park RECs $150,000 $214,007 ($64,007) Management Fees $498,000 $498,000 $0 PJM - Capacity UCAP Obligated Purchased $8,239,780 $8,093,027 $146,752 Subtotal - Power Supply $32,201,080 $33,940,959 ($1,886,632) Power Generation O&M Plant O&M $2,859,528 $2,643,458 $216,070 Subtotal Generation O&M $2,859,528 $2,643,458 $216,070 Power Generation Production Margin PJM - Economic and reliability dispatch ($230,472) ($1,742,146) $1,511,674 Fixed Fuel and Transport Charges $0 $831,570 ($831,570) Subtotal Generation Production Margin ($230,472) ($910,575) $680,104 Power Generation Non-Production Revenue PJM - Generation Capacity Credit ($7,889,000) ($7,889,000) $0 Emissions Allowance Sales $0 $0 $0 PJM - Black Start & Transmission Losses ($213,480) ($459,962) $246,482 Subtotal - Non-Production Revenue ($8,102,480) ($8,348,962) $246,482 SubTotal - All Generation ($5,473,424) ($6,616,079) $1,142,656 Total - Utilities Cost $26,727,656 $27,324,880 ($597,224) Unit Costs Total - Power Supply $82.62 $86.12 ($3.50) Total - Power Generation ($14.04) ($16.79) $2.74 Final Cost of Service to City of Dover Ratepayers $68.58 $69.33 ($0.75) 12

III. Operations Management NAES Corporation Dover, Delaware December 2013 Monthly Report Happy Holidays from McKee Run Generating Station!!! 13

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

1.0 Environmental, Health and Safety: During the month of December, there were no restricted work days or lost time accidents. Plant staff has finalized celebration plans for successfully completing Three Years of being Accident Free. The facility has now gone 3 years and 76 days (1,171 days) through December 31, 2013 without an OSHA Recordable Accident or a Lost Time reportable accident. The plant received no Notice of Violations (NOVs) during the month. The December (November Discharge) DMR was submitted for the McKee Run site with no NPDES exceedences. During the month of December, there were five (5) IWW discharges to the Kent County Sewer. During one discharge, sampling for PCBs was conducted as had been requested by Kent County. The samples were sent out to the lab and the results are expected to be received in January 2014. PCB sampling for Outfall 001 was also conducted. Test results are expected to be received in January 2014. Environmental, Health, and Safety Statistics Month Fiscal Year to Date (December) (7/1/13-6/30/14) NOVs 0 0 Opacity Deviations 0 0 Environmental Deviations 0 3 OSHA Recordable 0 0 OSHA LTA's 0 0 First Aid cases 0 0 Restricted Workday Accident 0 0 Near Miss 0 2 Man Hours Worked 3,986.00 25,073.75 Date last OSHA Recordable 10/14/10 Date last Lost Time Accident 10/14/10 Days since last OSHA recordable 1,171 Days since last Lost Time Accident 1,171 15

Emissions (NOx, CO2 & SO2) All data thru 12/31/13 NOx Summary – Ozone Season (May-Sep) Tons Year Unit #1 Unit #2 Unit #3 Unit #11 TOTAL 2010 0.7 2.2 88.7 3.3 94.7 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 NOx Summary - Year (Jan-Dec) Tons Year Unit #1 Unit #2 Unit #3 Unit #11 TOTAL 2010 0.7 2.2 88.7 3.3 94.7 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 SO2 Summary - Year (Jan-Dec) Tons Year Unit #1 Unit #2 Unit #3 Unit #11 TOTAL 2010 0.0 0.0 0.3 0.0 0.3 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 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# 8,726 16,091 Total CO2 Allowance Balance 120,596 *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 16

CAIR NOx Allowances Summary* NOx Allowances CAIR CAIR NOx Available Total NOx NOx Allowance Balance CAIR NOx NOx Allowances (Per Facility, Prior to Tons Emitted Allowances Allowance Sold YTD Sale) (Yr/ Season) Purchased Vintage McKee McKee VanSant YTD VanSant Run McKee Run - Run (Yr/Season) (Yr/Season) (Yr/Season) VanSant (Yr/Season) 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 Total NOx Allowance Balance 166/44 8/6 *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 Total SO2 Tons Available Total SO2 Tons Emitted – (Per Unit, Prior Emitted – SO2 Allowances SO2 Allowance SO2 Allowances U3 and U11 to Sale & U3 and U11 Balance Vintage Sold - YTD YTD Reconciliation) YTD Unit #3 Unit #11 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* Total SO2 Allowance Balance 11,053 Note – Emissions allowances are deducted according to oldest vintage first, unless otherwise directed. 17

2.0 Financial Financial – Current Month Month – December Actual Budget Variance Personnel 128,262 241,025 112,763 Materials & Supplies 13,223 6,525 (6,698) Administrative Expenses 89,122 95,232 6,110 Total $230,607 $342,782 $112,175 Financial – Fiscal Year to Date Number of Months – 6 Actual Budget Variance Personnel 1,356,009 1,686,905 330,896 Materials & Supplies 103,575 142,040 38,465 Administrative Expenses 1,003,910 1,049,208 45,298 Total $2,463,494 2,878,153 $414,659 2.1 Variance analysis: The actual expenses for the month of December are $230,607 against a budgeted amount of $342,782 for a favorable variance of $112,175 or 32.72%. The variance was due to the following: PERSONNEL EXPENSES – A favorable monthly variance of $112,763 was due to having one (1) payroll period expensed in this month versus two (2) that were budgeted. This includes straight time labor, overtime labor, and labor burden costs for December. MATERIALS AND SUPPLIES EXPENSES- An unfavorable monthly variance of $6,698 was due to timing of invoices for employee safety shoes and the need to purchase materials to repair facility access doors. ADMINISTRATIVE EXPENSES – A favorable monthly variance of $6,110 was due to lower than budgeted electricity costs and to the timing of invoices for the HEP-FAC work which was billed earlier in the year. The forecasted expenses for this fiscal year are $5,868,413 expensed versus an approved budget of $6,015,800 thereby realizing a 97.55% expenditure rate. 18

3.0 Operations Unit Operations / Outages / Trips In the month of December, no units were dispatched. All units were available for dispatch. Month December 2013 McKee McKee McKee MRS VanSant Total Unit 1 Unit 2 Unit 3 Facility Unit 11 All Units Capacity MW 17 17 102 136 39 175 On Line Hours Hrs 0.0 0.0 0.0 0.0 0.0 0.0 Starts # 0 0 0 0 0 0 Gross Generation MWh 0.0 0.0 0.0 0.0 0.0 0.0 Net Generation MWh 0.0 0.0 0.0 0.0 0.0 0.0 Total Auxiliaries MWh 28.439 28.439 157.160 214.038 5.726 219.764 Auxiliaries purchased MWh 28.439 28.439 157.160 214.038 5.726 219.764 Fuel Gas Used MMBTU 0.0 0.0 0.0 0.0 0.0 0.0 Fuel Oil Used MMBTU 0.0 0.0 0.0 0.0 0.0 0.0 Fuel Oil Used Gallons 0.0 0.0 0.0 0.0 0.0 0.0 Total Fuel MMBTU 0.0 0.0 0.0 0.0 0.0 0.0 Net Heat Rate BTU/KWh 0.0 0.0 0.0 0.0 0.0 0.0 Unit Trips # 0.0 0.0 0.0 0.0 0.0 0.0 Capacity Factor % 0.0 0.0 0.0 0.0 0.0 0.0 Availability Factor % 100.00 100.00 100.00 100.00 100.00 100.00 Commercial % 0 0 0 0 0 0 Unavailability (CU) Planned Outage Hours Hours 0.00 0.00 0.00 0.00 0.00 0.00 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 0.00 0.00 0.00 0.00 0.00 0.00 Hours HW Boiler Gas Usage MMBTU 1,364.250 1,364.250 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 - December 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 74.765 170.316 183.196 428.277 51.476 479.753 Starts # 2 4 13 19 14 33 Gross Generation MWh 585.171 1,106.123 12,576.985 14,268.280 1,569.051 15,837.330 Net Generation MWh 545.470 1,024.415 11,585.303 13,155.190 1,567.790 14,722.980 Total Auxiliaries MWh 188.599 230.606 1,946.155 2,365.360 13.551 2,378.911 Auxiliaries purchased MWh 191.521 234.051 954.473 1,380.045 12.290 1,392.335 Fuel Gas Used MMBTU 7,061.376 13,801.068 132,465.224 153,327.670 18,981.931 172,309.60 Fuel Oil Used MMBTU 1,642.633 1,671.506 0.0 3,314.14 2,937.660 6,251.80 Fuel Oil Used Gallons 11,568 11,726 0.0 23,294 20,795 44,089 Total Fuel MMBTU 8,704.009 15,472.574 132,465.224 156,641.81 21,919.591 178,561.40 Net Heat Rate BTU/KWh 15.778 14.477 11.558 13.938 13.838 13.888 Unit Trips # 0 1 0 1 4 5 Capacity Factor % 0.73 1.36 2.57 2.19 0.91 1.90 Availability Factor % 67.19 69.01 69.01 68.40 69.01 68.55 Commercial % 0 0 0 0 0 0 Unavailability (CU) Planned Outage Hours Hours 1,369.000 1,369.000 1,369.000 4,107.000 1,369.000 5,476.000 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 2,893.235 2,877.684 2,867.400 8,638.320 2,996.524 11,634.844 Hours HW Boiler Gas Usage MMBTU 2,233.658 2,233.658 Pilot Gas Usage MMBTU 1,473.105 3,733.607 5,206.712 5,206.712 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) (YTD) (Change) McKee Run (#2 Fuel Oil) 426,525 426,525 0 0 454,725 0 (28,200) VanSant 123,674 123,716 0 42 146,133 0 (22,417) (#2 Fuel Oil) Note: As measured by tank level instruments. Tank levels may change due to oil temperature. VanSant Lifetime through December 2013 Actual Starts Factored Starts Fired Hours VanSant 1328 2,291.75 4,479.60 Since HGP - Dec 2004 246 624.05 896.02 20

Team Report: Plant employees continue General Physics safety training and environmental courses to enhance their overall knowledge of permit and safety requirements. As the GPI courses are being completed the employee reviews the standard operating procedure (SMP) for the same topic they are training on to review NAES policy and score a minimum 80% on a quiz before they can complete the SMP. 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 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* 0.0 2 17 17.8 2 17* 0.0 3 102 103.0 3 102* 0.0 VanSant# 39 40.9 11 39* 0.0 Total 175 178.9 Total 175 0.0 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 December, the Plant Maintenance staff continued addressing the backlog of work orders. There were seventy-one work orders issued with sixty-eight work orders being completed during the month. There were no safety work orders entered into the plant’s Computerized Maintenance Management System (MP2) during the month. The table below summarizes the monthly work order activities. Work Order Report December - 2013 Outstanding From Outstanding Previous Issued This Completed at the end of Priority # Month Month This Month the month 1 5 8 0 13 2 68 9 29 48 3 37 4 3 38 4 6 0 0 6 5 18 0 1 17 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 59 50 35 74 EM 0 0 0 0 Totals 193 71 68 196 Note: PM Work Orders are included in the priority totals Notable activities during the month include: The NAES Maintenance and IC&E Staff installed thermocouples on the low point of the main steam line on Unit 3. The temperature of the line will be recorded on a data logger to ensure that no condensate is collecting in the line after shutting the unit down. The new laptop computer will be used to download the information and to place the data into a spreadsheet for analysis The NAES Maintenance Staff fabricated and installed a new cover lid for the makeup water valve pit for Unit 3 Cooling Tower. The old lid was corroded and not safe to operate in order to access the valves. The new doors on the lid are easier to open thus being safer for personnel to open. The IC&E Staff completed installing the remaining replacement handles on Units 1 and 2 switchgear breakers. In the past, some handles broke from time to time and a new supplier had recently been found who could supply the correct handles. The breakers were tested and the breakers open and closed with no issues 22

5.0 Capital Improvement Projects (CIP) Project Description Update Number Progress: Expenses are 100% complete. MR Industrial Waste EG1214 Schedule: Final revisions of Standard Operating Procedures and water System Sampling Procedures to be in place in January, 2013. Progress: Cooling Tower decking is 100% complete Unit #3 Cooling EG1402 Schedule: Remaining inspection work is scheduled for the spring Tower Repairs outage. McKee Run Progress: Work planned for the Fall is 100% complete. Auxiliary Schedule: Remaining Fall outage items were completed in EG1404 Component December. Planning is ongoing for the spring activities. Replacement VanSant Station Progress: Work planned for the Fall is 100% complete. EG1405 Component Schedule: Planning activities are underway for the Spring outage. Replacement Progress: The recently completed hangar adjustments will need to be checked with the unit in the hot (running) position. McKee Run HEP EG1406 Schedule: Remaining work activities were completed in December. Pipe Repairs Adjustments will need to be checked once units are heated up. Spring work still being planned for FAC work. Progress: Proposal received from vendor. COD and plant personnel have discussed proposal and submitted a list of “to do” items to the Metering System vendor for more information and clarification. EG1407 Upgrades Schedule: Work activities are moving forward. Additional questions have been posed to vendor and work scope is being developed. Waiting on response from vendor. Progress: Work is being planned to be completed in the Spring 2014 McKee outage period. Specifications being written for VanSant breaker EG1408 Run/VanSant Safety installation. Compliance Items Schedule: Work activities are slightly behind due to Fall Outage activities. McKee Run Natural Progress: Work scheduled for the Spring Outage. EG1409 Gas Block-Bleed Schedule: Work activities are back on track for a Spring Outage Valves completion date. 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 is on hold Preservation due to budget restraints. Unit 3 Turbine Progress: Work scope was developed, put out for bids and bids have EG1212 Repairs been evaluated. A recommendation was submitted to the COD City 23

Council for review and was approved by Council at their December 9 Council meeting. Consumables parts are being received. Schedule: List of consumables has been finalized, quotes received and parts were placed on order. Inspection/repair contractor being lined up for pre-job meeting and scheduling of outage activities. 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 Work activities are anticipated to be completed Repairs during the spring outage. Progress: Bid specifications are being developed and Environmental permit modifications are being investigated. Communications with PJM was initiated to get the additional MW into system and the Capacity increase request is in the PJM queue. Proposals have been VanSant Capacity received and are being evaluated. Some clarifications in areas of the EG1416 Increase proposals are needed to fully analyze them. Schedule: Environmental Support contract work was awarded and data is now being gathered by the contractor for use in the environmental application process. Additional work will be done once the clarification of proposals have been completed. 24

6.0 General Plant Information Thomas Lally began work on December 3 at McKee Run as an Auxiliary Operator in the Operations Department. Kathleen Cooper has accepted the offer to fill the position of Administrative Assistant and has been cleared through the physical and background screening process. Her first day is scheduled for January 2, 2014. Plant staff continues to screen and interview potential candidates for the position of Compliance Coordinator. Training: Topics discussed during the monthly safety committee meeting were reviewed by the entire staff. The monthly safety topic was on “Snow Plow Safety”. Topics discussed during the monthly safety committee meeting were reviewed by the entire staff. Calendar of Events Date Winter Capacity Period December 1, 2013 to February 28, 2014 Annual Title V Certifications Due January 30, 2014 EIA-860 Report February 28, 2014 EIA-923 Report February 28, 2014 NOx Emissions Reconciliation Due March 1, 2014 SO2 Emissions Reconciliation Due March 1, 2014 SARA III Report March 1, 2014 NPDES Permit Renewal Due March 4, 2014 Units 1, 2, and 3 Spring Outage March, 2014 – June, 2014 Unit 11 Spring Outage March, 2014 – June, 2014 Annual VanSant Black Start Test March, 2014 Air Emission Inventory March, 2014 NOx Ozone Season Starts May 1, 2014 PJM Summer Capacity Test Period June 1, 2014 – August 31, 2014 Toxic Release Inventory (TRI) Annual Report July 1, 2014 Units 1, 2, 3 and 11 Fall Outage October 1, 2014 Four Year Accident Free October 14, 2014 25

7.0 Summary of NAES Performance to Date Plant Performance FY 2013-2014 Measure Month Year to Date YTD FY Maximum Incentive Incentive Commercial 0.00% 0.09% $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 have successfully completed the PJM Summer Capacity Tests and are now included in the PJM Winter Capacity Test Exemption Program. The YTD Incentive calculation re 26

IV. Appendix 1 – PJM Invoice Breakdown Gen Load Grand Total 480-8102-592-95-49 Capacity Resource Deficiency $ (132.52) $ (132.52) Capacity Transfer Rights $ (19,233.33) $ (19,233.33) Incremental Capacity Transfer Rights $ (1,761.11) $ (1,761.11) Locational Reliability $ 1,384,641.66 $ 1,384,641.66 480-8102-592-95-49 Total $ 1,363,514.70 $ 1,363,514.70 480-8102-592-95-50 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 $ (26,877.93) $ (26,877.93) Balancing Operating Reserve $ 17,428.99 $ 17,428.99 Balancing Operating Reserve for Load Response $ (693.39) $ (693.39) Black Start Service $ 1,902.10 $ 1,902.10 CT Lost Opportunity Cost Allocation $ (17.36) $ (17.36) Day-Ahead Load Response Charge Allocation $ 119.04 $ 119.04 Day-ahead Operating Reserve $ 4,864.82 $ 4,864.82 Day-ahead Operating Reserve for Load Response $ 342.94 $ 342.94 Day-ahead Scheduling Reserve $ 22.91 $ 22.91 Demand Resource and ILR Compliance Penalty $ (8,588.65) $ (8,588.65) Expansion Cost Recovery $ 427.49 $ 427.49 FERC Annual Recovery $ 3,729.53 $ 3,729.53 Generation Deactivation Refund $ (757.91) $ (757.91) Load Management Test Failure $ (306.02) $ (306.02) Load Reconciliation for Transmission Losses $ 214.54 $ 214.54 Market Monitoring Unit (MMU) Funding $ 245.26 $ 245.26 Michigan - Ontario Interface Phase Angle Regulators $ 187.87 $ 187.87 Network Integration Transmission Service $ 342,169.01 $ 342,169.01 Non-Firm Point-to-Point Transmission Service $ (592.62) $ (592.62) Non-Synchronized Reserve $ 125.09 $ 125.09 North American Electric Reliability Corporation (NERC) $ 1,325.77 $ 1,325.77 Organization of PJM States, Inc. (OPSI) Funding $ 43.23 $ 43.23 PJM Scheduling, System Control and Dispatch Service - Advanced Second Control Center $ 1,437.09 $ 1,437.09 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 $ 10,605.76 $ 10,605.76 PJM Scheduling, System Control and Dispatch Service - Market Support $ 2,417.71 $ 2,417.71 PJM Scheduling, System Control and Dispatch Service - Market Support Offset $ (231.92) $ (231.92) PJM Scheduling, System Control and Dispatch Service - Regulation Market Administration $ 83.32 $ 83.32 PJM Scheduling, System Control and Dispatch Service Refund - Capacity Resource/Obligation Mgmt. $ (231.57) $ (231.57) PJM Scheduling, System Control and Dispatch Service Refund - Control Area Administration $ (2,927.24) $ (2,927.24) PJM Scheduling, System Control and Dispatch Service Refund - Market Support $ (678.39) $ (678.39) PJM Scheduling, System Control and Dispatch Service Refund - Regulation Market Administration $ (28.62) $ (28.62) PJM Settlement, Inc. $ 231.92 $ 231.92 Reactive Services $ 204,596.05 $ 204,596.05 Reactive Supply and Voltage Control from Generation and Other Sources Service $ 34,801.45 $ 34,801.45 Real-Time Load Response Charge Allocation $ 237.96 $ 237.96 Regulation and Frequency Response Service $ 10,083.95 $ 10,083.95 Reliability First Corporation (RFC) $ 1,946.26 $ 1,946.26 Synchronized Reserve $ 5,929.62 $ 5,929.62 Transmission Enhancement $ 4,883.03 $ 4,883.03 Transmission Owner Scheduling, System Control and Dispatch Service $ 4,657.24 $ 4,657.24 480-8102-592-95-90 Total $ 614,072.28 $ 614,072.28 480-8102-592-95-91 Balancing Spot Market Energy $ 139,188.46 $ 139,188.46 Balancing Transmission Congestion $ 4,429.15 $ 4,429.15 Balancing Transmission Losses $ 8,193.76 $ 8,193.76 Day-ahead Spot Market Energy $ 487,512.59 $ 487,512.59 Day-ahead Transmission Congestion $ (42,798.26) $ (42,798.26) Day-ahead Transmission Losses $ 68,632.29 $ 68,632.29 Emergency Load Response $ 108,131.01 $ 108,131.01 Inadvertent Interchange $ (1,176.76) $ (1,176.76) Load Reconciliation for Balancing Operating Reserve $ (4.18) $ (4.18) Load Reconciliation for Day-ahead Scheduling Reserve $ (0.24) $ (0.24) Load Reconciliation for FERC Annual Recovery $ (28.08) $ (28.08) Load Reconciliation for Inadvertent Interchange $ 9.83 $ 9.83 Load Reconciliation for Market Monitoring Unit (MMU) Funding $ (1.79) $ (1.79) Load Reconciliation for Non-Synchronized Reserve $ (3.50) $ (3.50) Load Reconciliation for North American Electric Reliability Corporation (NERC) $ (4.72) $ (4.72) Load Reconciliation for Organization of PJM States, Inc. (OPSI) Funding $ (0.33) $ (0.33) Load Reconciliation for PJM Scheduling, System Control and Dispatch Service $ (97.45) $ (97.45) Load Reconciliation for PJM Scheduling, System Control and Dispatch Service Refund $ 27.04 $ 27.04 Load Reconciliation for Reactive Services $ (4,087.14) $ (4,087.14) Load Reconciliation for Regulation and Frequency Response Service $ (153.13) $ (153.13) Load Reconciliation for Reliability First Corporation (RFC) $ (6.75) $ (6.75) Load Reconciliation for Schedule 9-6 - Advanced Second Control Center $ (12.51) $ (12.51) Load Reconciliation for Spot Market Energy $ (22,754.79) $ (22,754.79) Load Reconciliation for Synchronized Reserve $ (58.62) $ (58.62) Load Reconciliation for Transmission Congestion $ (5,870.47) $ (5,870.47) Load Reconciliation for Transmission Losses $ (975.76) $ (975.76) Load Reconciliation for Transmission Owner Scheduling, System Control and Dispatch Service $ (35.06) $ (35.06) Meter Error Correction $ (2,993.04) $ (2,993.04) 480-8102-592-95-91 Total $ 735,061.55 $ 735,061.55 480-8102-592-95-93 Reactive Supply and Voltage Control from Generation and Other Sources Service $ (29,467.58) $ (29,467.58) Transmission Losses $ (28,516.52) $ (28,516.52) 480-8102-592-95-93 Total $ (57,984.10) $ (57,984.10) Grand Total $ (1,387,109.10) $ 2,712,648.53 $ 1,325,539.43 27

IV. Appendix 1 – PJM Invoice Breakdown Gen Load Grand Total 480-8102-592-95-49 Capacity Resource Deficiency $ (132.52) $ (132.52) Capacity Transfer Rights $ (19,233.33) $ (19,233.33) Incremental Capacity Transfer Rights $ (1,761.11) $ (1,761.11) Locational Reliability $ 1,384,641.66 $ 1,384,641.66 480-8102-592-95-49 Total $ 1,363,514.70 $ 1,363,514.70 480-8102-592-95-50 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 $ (26,877.93) $ (26,877.93) Balancing Operating Reserve $ 17,428.99 $ 17,428.99 Balancing Operating Reserve for Load Response $ (693.39) $ (693.39) Black Start Service $ 1,902.10 $ 1,902.10 CT Lost Opportunity Cost Allocation $ (17.36) $ (17.36) Day-Ahead Load Response Charge Allocation $ 119.04 $ 119.04 Day-ahead Operating Reserve $ 4,864.82 $ 4,864.82 Day-ahead Operating Reserve for Load Response $ 342.94 $ 342.94 Day-ahead Scheduling Reserve $ 22.91 $ 22.91 Demand Resource and ILR Compliance Penalty $ (8,588.65) $ (8,588.65) Expansion Cost Recovery $ 427.49 $ 427.49 FERC Annual Recovery $ 3,729.53 $ 3,729.53 Generation Deactivation Refund $ (757.91) $ (757.91) Load Management Test Failure $ (306.02) $ (306.02) Load Reconciliation for Transmission Losses $ 214.54 $ 214.54 Market Monitoring Unit (MMU) Funding $ 245.26 $ 245.26 Michigan - Ontario Interface Phase Angle Regulators $ 187.87 $ 187.87 Network Integration Transmission Service $ 342,169.01 $ 342,169.01 Non-Firm Point-to-Point Transmission Service $ (592.62) $ (592.62) Non-Synchronized Reserve $ 125.09 $ 125.09 North American Electric Reliability Corporation (NERC) $ 1,325.77 $ 1,325.77 Organization of PJM States, Inc. (OPSI) Funding $ 43.23 $ 43.23 PJM Scheduling, System Control and Dispatch Service - Advanced Second Control Center $ 1,437.09 $ 1,437.09 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 $ 10,605.76 $ 10,605.76 PJM Scheduling, System Control and Dispatch Service - Market Support $ 2,417.71 $ 2,417.71 PJM Scheduling, System Control and Dispatch Service - Market Support Offset $ (231.92) $ (231.92) PJM Scheduling, System Control and Dispatch Service - Regulation Market Administration $ 83.32 $ 83.32 PJM Scheduling, System Control and Dispatch Service Refund - Capacity Resource/Obligation Mgmt. $ (231.57) $ (231.57) PJM Scheduling, System Control and Dispatch Service Refund - Control Area Administration $ (2,927.24) $ (2,927.24) PJM Scheduling, System Control and Dispatch Service Refund - Market Support $ (678.39) $ (678.39) PJM Scheduling, System Control and Dispatch Service Refund - Regulation Market Administration $ (28.62) $ (28.62) PJM Settlement, Inc. $ 231.92 $ 231.92 Reactive Services $ 204,596.05 $ 204,596.05 Reactive Supply and Voltage Control from Generation and Other Sources Service $ 34,801.45 $ 34,801.45 Real-Time Load Response Charge Allocation $ 237.96 $ 237.96 Regulation and Frequency Response Service $ 10,083.95 $ 10,083.95 Reliability First Corporation (RFC) $ 1,946.26 $ 1,946.26 Synchronized Reserve $ 5,929.62 $ 5,929.62 Transmission Enhancement $ 4,883.03 $ 4,883.03 Transmission Owner Scheduling, System Control and Dispatch Service $ 4,657.24 $ 4,657.24 480-8102-592-95-90 Total $ 614,072.28 $ 614,072.28 480-8102-592-95-91 Balancing Spot Market Energy $ 139,188.46 $ 139,188.46 Balancing Transmission Congestion $ 4,429.15 $ 4,429.15 Balancing Transmission Losses $ 8,193.76 $ 8,193.76 Day-ahead Spot Market Energy $ 487,512.59 $ 487,512.59 Day-ahead Transmission Congestion $ (42,798.26) $ (42,798.26) Day-ahead Transmission Losses $ 68,632.29 $ 68,632.29 Emergency Load Response $ 108,131.01 $ 108,131.01 Inadvertent Interchange $ (1,176.76) $ (1,176.76) Load Reconciliation for Balancing Operating Reserve $ (4.18) $ (4.18) Load Reconciliation for Day-ahead Scheduling Reserve $ (0.24) $ (0.24) Load Reconciliation for FERC Annual Recovery $ (28.08) $ (28.08) Load Reconciliation for Inadvertent Interchange $ 9.83 $ 9.83 Load Reconciliation for Market Monitoring Unit (MMU) Funding $ (1.79) $ (1.79) Load Reconciliation for Non-Synchronized Reserve $ (3.50) $ (3.50) Load Reconciliation for North American Electric Reliability Corporation (NERC) $ (4.72) $ (4.72) Load Reconciliation for Organization of PJM States, Inc. (OPSI) Funding $ (0.33) $ (0.33) Load Reconciliation for PJM Scheduling, System Control and Dispatch Service $ (97.45) $ (97.45) Load Reconciliation for PJM Scheduling, System Control and Dispatch Service Refund $ 27.04 $ 27.04 Load Reconciliation for Reactive Services $ (4,087.14) $ (4,087.14) Load Reconciliation for Regulation and Frequency Response Service $ (153.13) $ (153.13) Load Reconciliation for Reliability First Corporation (RFC) $ (6.75) $ (6.75) Load Reconciliation for Schedule 9-6 - Advanced Second Control Center $ (12.51) $ (12.51) Load Reconciliation for Spot Market Energy $ (22,754.79) $ (22,754.79) Load Reconciliation for Synchronized Reserve $ (58.62) $ (58.62) Load Reconciliation for Transmission Congestion $ (5,870.47) $ (5,870.47) Load Reconciliation for Transmission Losses $ (975.76) $ (975.76) Load Reconciliation for Transmission Owner Scheduling, System Control and Dispatch Service $ (35.06) $ (35.06) Meter Error Correction $ (2,993.04) $ (2,993.04) 480-8102-592-95-91 Total $ 735,061.55 $ 735,061.55 480-8102-592-95-93 Reactive Supply and Voltage Control from Generation and Other Sources Service $ (29,467.58) $ (29,467.58) Transmission Losses $ (28,516.52) $ (28,516.52) 480-8102-592-95-93 Total $ (57,984.10) $ (57,984.10) Grand Total $ (1,387,109.10) $ 2,712,648.53 $ 1,325,539.43 28

FUND SUMMARY as of 01/24/2014 Total Collected $ 986,223.49 DEMEC Admin Fee Paid $ 51,816.23 State Admin Fee Paid $ 22,292.26 Total Grant Dollars Paid $ 689,770.82 Customer Only Grants/Fees Reserved and Amount Owed $ 40,219.81 Community Project Funds Requested - Dov. Lib - Requested $ 1,970,000.00 Community Project Funds Requested - Dov. Lib -Still Owed $ 1,769,591.68 Energy Depot Fees Paid $ 48,441.12 Efficiency Program Dollars Paid $ 37,268.34 Solar Electric Power Association (SEPA) Fee Paid $ 4,317.61 Unencumbered Funds Available Grants $ 9,119.59 Collected Funds Available for Dover Library $ 82,977.71 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 Reye Solar - Res $ 12,762.50 $ 750.00 $ - 4/16/2008 Lakeland Commercial Group Geo - Comm $ 10,800.00 $ 750.00 $ - 6/19/2008 & 08/25/2008 L.D. Shank - Triad Farms Solar - Comm $ 30,000.00 $ 750.00 $ - 10/6/2008 City of Dover Solar - Comm $ 40,820.00 $ 750.00 $ - 10/21/2008 Robert & Cynthia Hartman Geo HP- Res $ 1,800.00 $ 135.00 $ - 10/21/2008 Robert Varipapa Geo HP- Res $ 2,400.00 $ 180.00 $ - 2/27/2009 David Jump Solar - Res $ 15,000.00 $ 750.00 $ - 2/27/2009 Jakob Seren Solar - Res $ 15,000.00 $ 750.00 $ - 2/27/2009 William Sweet Solar - Res $ 15,000.00 $ 750.00 $ - 3/31/2009 LD Shank - Triad Farms Solar WH-Comm $ 3,000.00 $ 225.00 $ - 3/31/2009 Warren & Joan Seaver Geo HP- Res $ 3,000.00 $ 225.00 $ - 4/22/2009 William Sweet Solar HW $ 3,000.00 $ 225.00 $ - 4/28/2009 State of DE/DNREC - DE National Solar - Comm $ 30,000.00 $ 750.00 $ - 4/29/2009 Delaware Primary Care, LLC Solar - Comm $ 30,000.00 $ 750.00 $ - 9/11/2009 NCALL Solar - Comm $ 30,000.00 $ 750.00 $ - 9/11/2009 D. Brian Beckman Geo HP- Res $ 2,000.00 $ 150.00 $ - 9/21/2009 LKSC Dover, LLC Kids Cottage Solar - Comm $ 29,925.00 $ 750.00 $ - 10/5/2009 Mark F. Boller Geo HP- Res $ 3,000.00 $ 225.00 $ - 10/5/2009 John Welgan Solar - Res $ 15,000.00 $ 750.00 $ - 11/4/2009 LKSC Dover, LLC Kids Cottage Geo - Comm $ 12,000.00 $ 750.00 $ - 3/25/2010 Minaxi Patel Solar - Res $ 15,000.000 $ 750.000 $ - 3/23/2010 J. McGiffin Jr. & K. Doyle Geo HP- Res $ 3,000.000 $ 225.000 $ - 5/28/2010 Nancy Warner Geo HP- Res $ 1,200.000 $ 90.000 $ - 6/2/2010 David Teel Geo HP - Res $ 1,800.000 $ 135.000 $ - 6/2/2010 Dewey J. Barich Geo HP- Res $ 2,400.00 $ 180.000 $ - 7/12/2010 Mike & Sharonb Laverty Solar - Res $ 5,105.000 $ 382.880 $ - 8/19/2010 James Grilli Geo HP- Res $ 1,800.00 $ 135.000 $ - 8/19/2010 Michael Noble Solar - Res $ 15,000.000 $ 750.000 $ - 9/17/2010 David Teel Solar - Res $ 7,500.000 $ 562.500 $ - 3/8/2011 Michael & Carol Apgar Solar - Res $ 7,500.000 $ 562.500 $ - 3/17/2011 Elizabeth Murphey School Geo HP - Comm $ 9,200.000 $ 690.000 $ - 5/24/2011 Richard Avant Geo HP - Res $ 2,400.000 $ 180.000 $ - 6/23/2011 Charles Messina Plumbing Solar - Comm $ 10,000.000 $ 750.000 $ - 10/4/2011 Charles Bounds Geo HP - Res $ 1,800.000 $ 135.000 $ - 3/29/2011 Psychiatric Access Central DE Solar - Comm $ 13,187.500 $ 750.000 $ - 7/8/2011 Michael J. Kopp Geo - Res $ 2,300.000 $ 135.000 $ 37.50 10/17/2011 City of Dover ** Library Geo - Comm $ 48,267.000 $ - $ - 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 Geo - Comm $ 13,800.000 $ 750.00 $ - 3/7/2012 Elizabeth Murphey School Geo - Comm $ 12,000.000 $ 750.00 $ - 3/7/2012 Elizabeth Murphey School Geo - Comm $ 5,400.000 $ 405.00 $ - 3/7/2012 Elizabeth Murphey School Geo - Comm $ 1,800.000 $ 135.00 $ - 3/7/2012 Elizabeth Murphey School Geo - Comm $ 10,200.000 $ 750.00 $ - 3/7/2012 Frank Daniels Geo - Res $ 4,400.00 $ 303.75 $ 26.25 8/15/2012 Chong S. Tamburo-Lepage Geo - Res $ 2,300.00 $ 172.50 $ - 12/5/2012 City of Dover ** Library Geo - Comm $ 152,141.32 $ - $ - 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 Solar - 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 Solar - PV - Res $ 5,287.50 $ - $396.56 10/30/2013 James and Deri Austin Solar - PV - Res $ 7,500.00 $ - $562.50 Total $ 689,770.82 $ 22,292.26 $ 1,247.81 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 Calogero Guarraggi Solar - PV - Res $ 7,500.00 $ 562.50 Approved Pending Completion Elizabeth Murphy School Geo HP - Com $ 3,700.00 $ 277.50 Approved Pending Completion Governors Avenue Animal Hospital Solar - PV - Com $ 13,550.75 $ 750.00 Approved Pending Completion Holly Pfeifer Solar - PV - Res $ 5,750.00 $ 431.25 Approved Pending Completion Mohammed Fuad Geo HP - Res $ 3,000.00 $ 225.00 Approved Pending Completion Julia M. Pillsbury Geo HP - Res $ 3,000.00 $ 225.00 Total $ 36,500.75 $ 2,471.25 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 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 $ 4,317.61

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 Mar, Apr, May 2014 June, July, Aug 2014 Sept, Oct, Nov 2014 Dec 14, Jan, Feb 2015 Total Paid $ 48,441.12 ENERGY EFFICIENCY CAMPAIGNS/EDUCATION PROGRAMS Paid Program Measure Amount 10/21/2008 1,500 CFL Campaign & $ 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 Available 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 $ 82,977.71 $ 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 $ 82,977.71 $ 200,408.32 $ 6,430.15 1/2 of July 2011 GEF Payment $ 6,916.50 1/2 of Aug 2011 GEF Payment $ 6,149.31 1/2 of Sept 2011 GEF Payment $ 5,243.92 1/2 of Oct 2011 GEF Payment $ 4,829.91 1/2 of Nov 2011 GEF Payment $ 4,531.81 1/2 of Dec 2011 GEF Payment $ 4,990.50 1/2 of Jan 2012 GEF Payment $ 5,071.81 1/2 of Feb 2012 GEF Payment $ 4,828.32 1/2 of March 2012 GEF Payment $ 4,857.07 1/2 of April 2012 GEF Payment $ 4,230.04 1/2 of May 2012 GEF Payment $ 5,711.19 1/2 of June 2012 GEF Payment $ 6,085.89 1/2 of July 2012 GEF Payment $ 7,347.66 1/2 of Aug 2012 GEF Payment $ 6,453.66 1/2 of Sept 2012 GEF Payment $ 4,886.43 1/2 of Oct 2012 GEF Payment $ 4,132.99 1/2 of Nov 2012 GEF Payment $ 5,513.86 1/2 of Dec 2012 GEF Payment $ 5,187.25 1/2 of Jan 2013 GEF Payment $ 5,307.83 1/2 of Feb 2013 GEF Payment $ 4,783.25 1/2 of March 2013 GEF Payment $ 4,903.40 1/2 of April 2013 GEF Payment $ 4,673.21 1/2 of May 2013 GEF Payment $ 5,322.04 1/2 of June 2013 GEF Payment $ 6,352.74 1/2 of July 2013 GEF Payment $ 6,519.11 1/2 of Aug 2013 GEF Payment $ 5,995.23 1/2 of Sept 2013 GEF Payment $ 4,913.73 All of Oct 2013 GEF Payment Per Allocation Request from Dover 10/30/2013 $ 9,543.51 All of Nov 2013 GEF Payment $ 9,829.60 All of Dec 2013 GEF Payment All of Jan 2014 GEF Payment All of Feb 2014 GEF Payment All of March 2014 GEF Payment All of April 2014 GEF Payment All of May 2014 GEF Payment 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 $ 283,386.04 Total Collections

City of Dover Electric Revenue Fund FY14 - White Oak Solar Park Increm ental Cost Original July August September October November December YTD Budget Power Supply & Generation Dov er Sun Park - Energy $ 187,421 $ 176,372 $ 204,852 $ 120,839 $ 99,447 $ 64,684 $ 853,615 $ 1,565,800 Dov er Sun Park - REC's 43,005 38,516 42,894 25,307 20,875 - 170,598 300,000 Total Power Supply Cost 230,426 214,888 247,746 146,146 120,322 64,684 1,024,212 1,865,800 Non-Solar Power Supply Cost (180,227) (154,545) (154,590) (100,770) (79,066) (52,146) (721,344) (743,964) Incremental Energy Cost $ 50,199 $ 60,343 $ 93,156 $ 45,376 $ 41,256 $ 12,538 $ 302,868 $ 1,121,836 Rev enues Customer Sales - Electricity (9,404) (7,389) (7,538) (7,662) (7,721) (7,662) (47,376) (26,300) Rent Receipts (14,446) - - (14,446) - - (28,892) (58,300) Total Rev enues (23,850) (7,389) (7,538) (22,108) (7,721) (7,662) (76,268) (84,600) Incremental Sun Park Cost $ 26,349 $ 52,954 $ 85,618 $ 23,268 $ 33,535 $ 4,876 $ 226,600 $ 1,037,236 MWh Purchased/Generated - Solar 2,052.584 1,815.656 2,000.128 1,179.844 970.972 631.556 8,650.740 18,159.000 MWh $ Solar Energy $ 91.31 $ 97.14 $ 102.42 $ 102.42 $ 102.42 $ 102.42 $ 98.68 $ 86.23 Solar REC's MWh 307.000 272.000 300.000 177.000 146.000 - 1,202.000 MWh $ Solar REC (one month lag)* $ 140.08 $ 141.60 142.98 142.98 142.98 - $ 141.93 MWh $ Non-Solar Energy $ 87.81 $ 85.12 $ 77.29 $ 85.41 $ 81.43 $ 82.57 Note: Solar REC's are one month behind due to the time the inv oice is receiv ed.