Attachment

UTILITY COMMITTEE AGENDA JANUARY 13, 2014 - 5:00 P.M. CITY HALL COUNCIL CHAMBERS 15 LOOCKERMAN PLAZA DOVER, DELAWARE Public comments are welcomed on any item and will be permitted at appropriate times. When possible, please notify the City Clerk (736-7008 or e-mail at CityClerk@dover.de.us) should you wish to be recognized. AGENDA ADDITIONS/DELETIONS 1. Request for Abandonment (Improved) - Budd Street - City of Dover (The Planning Commission Recommended Approval of the Request for Abandonment, as Recommended by the Planning Staff)(Public Works Staff Recommends (1) Abandonment of the Subject Right-of-Way with Conveyance of Five-Feet (5') of Said Right-of-Way to 5 E. Reed Street, 45 South State Street and Tax Parcel Number ED-05-077.05-04-36.00 on South American Avenue, Currently Owned by the City of Dover, in Conjunction with the Provision of a Public Utility Easement for Each Parcel; and (2) Adoption of a Resolution by Council Setting a Public Hearing Regarding the Proposed Abandonment for February 10, 2014) 2. TEA/NAES Report (November) (Staff Recommends Acceptance of the Report) 3. Garrison Oak Technical Park Project Updates A. City Infrastructure (Committee Action Not Required) B. Calpine Energy Center (Committee Action Not Required) C. Dover Sun Park (Committee Action Not Required) 4. Adjournment by 5:30 p.m. /tm S:\AGENDAS-MINUTES-PACKETS\Committee-Agendas\2014\01-13-2014 UTILITY.wpd THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS.

ACTION FORM PROCEEDING: Utility Committee AGENDA ITEM: DEPARTMENT OF ORIGIN: Public Works DATE SUBMITTED: 1/3/14 PREPARED BY: Sharon J. Duca, P.E., Public Works Director / City Engineer SUBJECT: Abandonment of Right-of-Way – Budd Street REFERENCE: N/A RELATED PROJECT: N/A APPROVALS: City Manager EXHIBITS: Attachment A – Map EXPENDITURE REQUIRED: $ N/A AMOUNT BUDGETED: $ N/A FUNDING SOURCE (Dept./Page in CIP & Budget): N/A TIME TIMETABLE: The referenced portion of right-of-way shall be abandoned upon approval by City Council. RECOMMENDED ACTION: The following actions are recommended should the Committee be in favor: (1) Abandonment of the subject right-of-way with conveyance of five-feet (5’) of said right-of-way to 5 E. Reed Street, 45 South State Street and tax parcel number ED-05-077.05-04-36.00 on South American Avenue, currently owned by the City of Dover, in conjunction with the provision of a public utility easement for each parcel. (2) Adoption of a resolution by Council setting a public hearing regarding the proposed abandonment for February 10, 2014. BACKGROUND AND ANALYSIS The City of Dover staff requested that the improved street known as Budd Street be abandoned. It is currently improved between Weyandt Hall at 5 E. Reed Street to the south and the old Dover Public Library at 45 South State Street and the City owned property adjacent to S. American Avenue to the north. Budd Street runs east- west from South State Street to Kings Highway. The names, addresses and tax parcel numbers of the affected properties are as follows: Property Owner Address Tax Parcel Number City of Dover 5 E. Reed Street ED-05-077.05-04-35.00 City of Dover 45 S. State Street ED-05-077.05-04-33.00 City of Dover S. American Avenue ED-05-077.05-04-36.00 Public Works staff has confirmed that this area is improved and a public utility easements will be required for the existing water and wastewater infrastructure located therein. As per the plan, the right-of-way for Budd Street is ten-feet (10’) wide. Half of the right-of-way, or five-feet (5’), would be conveyed to the requesting parties. The Department of Public Works has no objection to the abandonment of the subject area of right-of- way. The Department recommends conveyance of five-feet (5’) of said right-of-way to the above referenced properties in conjunction with the provision of a public utility easement for each parcel.

Budd Street Proposed Right-of-Way Ò Abandonment ! § 144 ED05-077.05-04-40.00 30 . ! ED05-077.05-04-31.01 29 !Ò§ ED05-077.05-04-31.00 !Ò§ Ò ! § !Ò§ S Am !Ò§ Ò! × § 2 eric ! ! !Ò§ w g ED05-077.05-04-36.00 ve wÒ an A Ò ! § g ! § 33 §Ò ! Ò ! § ED05-077.05-04-32.00Ò !§ Ò ! § !Ò§ w g !Ò§ !Ò§ 45 ED05-077.05-04-33.00 . ! . ! Ò ! § g w 42 ED05-077.05-04-21.00 y Kings H 2 ! ! at e g w× S St g w w St × 46 ED05-077.05-04-20.00 Ò ! 5 § ED05-077.05-04-35.00 Ò ! § 54 ED05-077.05-04-19.00 ed St E Re w g w g !Ò§ 89 2 ! ! ED05-077.05-04-51.00 t 107 ed S W Re ED05-077.05-04-65.00 55 w g ED05-077.05-04-62.00 §Ò × ! !Ò§ Ò ! § 0 40 80 160 Feet Legend ¯ Dover Parcels Ò ! § Overhead Electric Pole w g w Storm Sewer Inlet g Date Printed: November 13, 2013 2 ! Storm Sewer Manhole Underground Electric Lines File: m:\gis_data\projects/tech_mxds ! Overhead Electric Lines Hydrants \st_abandonment_map_budd_st × Storm Sewer Pipe . Sanitary Sewer Manholes ! Department: Public Works GIS Water Main Sanitary Sewer Line City of Dover, Delaware Hydrant Line Budd St

PETITION TO ABANDON AN IMPROVED CITY STREET Planning Commission Report to the Utility Committee January 13, 2014 Applicant: City of Dover Location: Budd Street between South State Street and Kings Highway Present Use: Drive Aisle /Sidewalk in Parking Lot between Weyandt Hall at 5 E. Reed Street and the old Dover Public Library at 45 South State Street Proposed Use: Same Reason for Request: Clean-up of property lines with adjoining City of Dover owned properties File Number: MI-13-21 Summary of the Request: The applicant has requested abandonment of Budd Street. The existing narrow right-of-way for Budd Street runs east-west between South State Street and Kings Highway, north of East Reed Street. Budd Street is shown on the 1868 Beers Atlas Map of Dover connecting South State Street and King Street (Kings Highway). Budd Street also appears on the W.B. Roe Map of the Town of Dover dated 1887 and is shown ending opposite the Richardson & Robbins Packing House (the building which now houses DNREC). At that time in the mid-to-late 1800s, Reed Street ended at South State Street and a series of residences lined the east side of South State Street. Budd Street continues to appear (without the current format of Reed Street) on historic maps through at least 1929. The history of the development of the Library at 45 South State Street in late 1950s indicates the City’s involvement to acquire and then redevelop several properties in this general area of Budd Street for the Library (dedicated 1961). The current format of Reed Street continuing east to Kings Highway may have been created at that time. Recommendation of the Planning Staff and Planning Commission: The Planning Staff has no objection to the proposed abandonment; however we recommend that appropriate easements be retained for any City utilities that may cross through the area. The Staff recommendation was developed before the benefit of public input on the abandonment

MI-13-21 Request for Street Abandonment: Budd Street Planning Commission Report to the Utility Committee – January 13, 2014 Page 2 request. Following a public hearing on December 16, 2013, where no members of the public spoke with regard to the request to abandon Budd Street, the Planning Commission voted unanimously to recommend approval of the requested abandonment. Comments from other DAC review agencies are attached.

CITY OF DOVER DEVELOPMENT ADVISORY COMMITTEE APPLICATION REVIEW COMMENTARY STAFF D.A.C. MEETING DATE: NOVEMBER 27, 2013 APPLICATION: Request for Street Abandonment : Budd Street FILE #: MI-13-21 REVIEWING AGENCY: City of Dover Electric and Public Works Departments CONTACT PERSON: Steve Enss - Electric Jason A. Lyon, P.E. – Public Works CONTACT PHONE #: Electric - 302-736-7070 Public Works – 302-736-7025 T HE S UBJECT P ROPOSAL HAS BEEN R EVIEWED FOR C ODE C OMPLIANCE , P LAN C ONFORMITY AND C OMPLETENESS IN A CCORDANCE WITH THIS A GENCY ’ S A UTHORITY AND A REA OF E XPERTISE . T HE F OLLOWING I TEMS HAVE BEEN I DENTIFIED AS E LEMENTS W HICH N EED TO BE A DDRESSED BY THE A PPLICANT : CITY AND STATE CODE REQUIREMENTS ELECTRIC / WATER / WASTEWATER / STORMWATER / STREETS / SANITATION / GROUNDS 1. Our office has no objections to the proposed street abandonment. RECOMMENDATIONS SUGGESTED AS CONDITIONS OF APPROVAL TO MEET CODE OBJECTIVES ELECTRIC / WATER / STORMWATER / STREETS / SANITATION / GROUNDS 1. None. WATER 1. A permanent public utility easement shall be provided for the existing six-inch (6”) water main located within this right- of-way. No temporary or permanent structures, including signage or stormwater management areas, shall be placed within the easement areas established. WASTEWATER 1. A permanent public utility easement shall be provided for the existing twenty-four inch (24”) sanitary sewer main located within this right-of-way. No temporary or permanent structures, including signage or stormwater management areas, shall be placed within the easement areas established. ADVISORY COMMENTS TO THE APPLICANT ELECTRIC 1. Once streets are abandoned and turned into a private road, the streetlighting is no longer required & becomes private, Customer has four options: (1) contact Customer Service to set up an account to pay for existing lights monthly, (2) contact Customer Service & set up metering for existing lights, (3) City will disconnect existing lights from City system, abandon lights to customer & they can energize from their system or (4) contact Kent County and inquire about the possibility of setting up a lighting district. . Options 1,2 & 4, City of Dover provides maintenance for lights. Option 3, lights & wiring are the sole responsibility of customer (City will recommend a metering point if necessary) WATER / WASTEWATER / STORMWATER / STREETS / SANITATION / GROUNDS 1. None

Request for Street Abandonnent : Budd Street File #: MI-13-21 November 27, 2013 Page 2 of 2 GENERAL 1. The parking that is adjacent to Budd Street is completely on the parcel to the south of the abandonment; therefore, the property to the north will not have any parking associated with its parcel. I F Y OU H AVE A NY Q UESTIONS OR N EED TO D ISCUSS ANY OF THE A BOVE C OMMENTS , P LEASE C ALL THE A BOVE C ONTACT P ERSON AND THE P LANNING D EPARTMENT AS S OON AS P OSSIBLE .

CITY OF DOVER D E DEVELOPMENT ADVISORY COMMITTEE L APPLICATION REVIEW COMMENTARY D O D.A.C. MEETING DATE: November 27, 2013 T =============================================================== APPLICATION: Request For Street Abandonment: Budd Street FILE#: MI-13-21 REVIEWING AGENCY: DelDOT CONTACT PERSON: Julio F. Seneus PHONE#: 760-2145 =============================================================== THE SUBJECT PROPOSAL HAS BEEN REVIEWED FOR CODE COMPLIANCE, PLAN CONFORMITY AND COMPLETENESS IN ACCORDANCE WITH THIS AGENCY'S AUTHORITY AND AREA OF EXPERTISE. THE FOLLOWING ITEMS HAVE BEEN IDENTIFIED AS ELEMENTS WHICH NEED TO BE ADDRESSED BY THE APPLICANT: CITY & STATE CODE REQUIREMENTS: 1. The Department has no comments on the proposed street abandonment. RECOMMENDATIONS SUGGESTED AS CONDITIONS OF APPROVAL TO MEET CODE OBJECTIVES: ADVISORY COMMENTS TO THE APPLICANT: If you have any questions or need to discuss any of the above comments, please call the above contact person and the planning department as soon as possible.

CITY OF DOVER DEVELOPMENT ADVISORY COMMITTEE APPLICATION REVIEW COMMENTARY December 2013 APPLICATION: Street Abandonment –Budd Street FILE #: MI-13-21 REVIEWING AGENCY: Kent Conservation District CONTACT PERSON: David C. Cahill PHONE #: 741-2600 ext.3 THE SUBJECT PROPOSAL HAS BEEN REVIEWED FOR CODE COMPLIANCE, PLAN CONFORMITY AND COMPLETENESS IN ACCORDANCE WITH THIS AGENCY’S AUTHORITY AND AREA OF EXPERTISE. THE FOLLOWING ITEMS HAVE BEEN IDENTIFIED AS ELEMENTS WHICH NEED TO BE ADDRESSED BY THE APPLICANT: CITY AND STATE CODE REQUIREMENTS: 1. Kent Conservation District has no objection to the above street being abandon. ADVISORY COMMENTS TO THE APPLICANT: The Following comments are advisory and apply to the development of a detailed site plan for this project. 1. If at any time expansion or earth disturbing activity (clearing, grubbing tree clearing etc.) takes place and exceeds 5000 square feet; a detailed Sediment and Stormwater Management Plan must be submitted and approved to the Kent Conversation District.

The Energy Authority, Inc. Monthly Management Committee Update – November 2013 December 20, 2013 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 $155,238 over budget due to higher reactive services costs. This was offset somewhat by lower power market purchases. Dover’s budgeted cost for all power supply (capacity AND energy) was $83.62/MWh. The actual cost of all power supply (capacity AND energy) was $82.15/MWh. The cost of energy alone was $45.34/MWh, versus a budgeted energy cost of $49.80. Dover’s hedge purchases totaled 44,050 MWh, which was 77% of the actual load. The budgeted hedge purchase totaled 30,420, which was 56% of the budgeted load. Dover’s power purchases from hedge transactions totaled $2,145,418. Purchases from PJM (energy and fees) totaled $1,047,518 with DA Energy purchases totaling $321,601 and Reactive Services Charges totaling $288,961. Dover’s total load was 57,460 MWh versus a forecasted load of 54,592 MWh. Dover’s planned energy purchase from the SunPark solar installation was 912 MWh. Dover’s actual energy purchase from the SunPark installation was 971 MWh. 1

Supply Source Summary: Supply Variance: Budget Actual Variance Gross Load 54,592 57,460 (2,868) Wholesale Load 53,680 56,489 (2,809) Hedged Volume (MWh) 30,420 44,050 (13,630) Unhedged Volume (MWh) 23,260 12,439 10,821 Dover SunPark Volume (MWh) 912 971 (59) Renewable Energy Credits Volume 137 177 (40) Hedged Cost ($/MWh) 55.09 48.70 6.38 Unhedged Energy Cost ($/MWh) $ 41 $ 29 $ 12 Solar Energy Cost ($/MWh) $ 87 $ 102 $ (15) Energy Costs ($/MWh) $49.80 $45.34 $4.46 All-in Costs - Energy, Capacity and RECs ($/MWh) $83.62 $82.15 $1.47 2

B. Generation Summary: Dover generated 0 MWh in the month. Net generation revenue was $955,220 vs. a budget of $775,500. 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) $ 1,286,250.00 PJM - Black Start & Transmission Losses (GEN) $ 49,646.57 Gas Purchases $ - Oil Purchases $ - Transport / Cash Out $ - Gross Margin $ 1,335,896.57 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 November 30th, 2013 (Includes Nov15, 2011 sale of Seasonal NOx to DEMEC) 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) 12/31/09 2009 Emissions2 (1) (6) (13) 12/31/10 2010 Emissions 0 (54) (54) 10/31/10 EPA Linearity Testing Req. (68) (68) 2011 2010 Deficit NOx Purchases 53 22 Aug 2011 Revised 2010 ECMPS data 30 30 Nov 2011 NOx Seas. Sales (DEMEC) (1) 12/31/11 2011 Emissions2 (1) (32) (36) 12/31/12 2012 Emissions2 (1) (37) (37) Nov 2012 NOx Seas. Sales (DEMEC) (2) 2/13/2013 NOx Annual. Sales (DEMEC) (3) 11/15/13 NOx Annual Sales (DEMEC) (5) 11/30/13 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). EPA has appealed this ruling to the U.S. Supreme Court, and the Court has agreed to review the DCA opinion. A ruling is not expected before June, 2014. 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

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 (12/13/2013) Commodity $/Ton Tons Extended (Bid/Offer Avg.) Value SO2 Allowances (2009 & earlier) $ 1.38 5,089 $ 7,022 SO2 Allowances (2010-13) $ 0.68 5,964 4,026 NOx Allowances - Seasonal $20.00 50 1,000 NOx Allowances - Annual $40.00 174 6,960 TOTAL $19,008 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). CO2 Allowance Summary (11/30/2013) 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 6

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 will no longer receive 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. Dover could elect to sell all or a portion of its banked allowances now and re-acquire allowances at a later date; however TEA is currently of the opinion that Dover will be better off retaining its banked allowances for use during future compliance years. The most recent RGGI auction occurred on 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 December 16, 2013 ranged from $3.21 to $3.54/ton, depending settlement month. Based on the average Intercontinental Exchange prices for December 16, 2013 settlement ($3.21/ton), the value of Dover’s existing 120,596 ton RGGI allowance bank is $387,113. 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 September 2013 SREC auction cleared separately for 2010/2011 through 2013/2014 vintage 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

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 last month’s report ($66,311). SREC Vintage Auction Clearing Price SREC Quantity Market Value (June 1 – May 31) $ 4.01 13 2010/2011 $ 52 (Aug-13 Auction) 2011/2012 $ 19.00 2,375 45,125 2012/2013 $19.00 2,725 51,775 2013/2014 $24.51 1,376 33,726 TOTAL 6,489 $130,678 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 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. 8

D. Operations Management Summary: During the month of November, there were no reportable or lost time accidents or injuries. The facility has now gone 1,140 days without an OSHA recordable accident and 1,140 consecutive days without a lost time reportable accident. There were zero Environmental Notices of Violations issued and there were no Near Miss incidents. In the month of November the planned outages of all Units were cleared on November 27. There were no dispatches for any of the Units for the remainder of the month. Monthly Budget Variance – The actual expenses attributable to O&M of the two sites for the month of November were $380,677 against a budgeted amount of $564,480 for a favorable variance of $183,803 or 32.56%. The principal reason for the favorable variance was due to having two (2) payroll periods expensed in this month as opposed to the 3 payroll periods that were budgeted. This favorable variance was offset somewhat by administrative expenses that were budgeted later in the year but were expensed during the month. E. Risk Management Summary: Forward power prices in PJM are higher than last month. Winter Natural Gas prices have rallied with the sustained below normal temperatures we have seen. The current projected cost of service is below: Blended Monthly Cost Change Power Year Hedge Ratio ($/MWh) ($/MWh) 2013-14 76% $ 49.17 $ 0.35 2014-15 53% $ 43.85 $ 0.39 2015-16 29% $ 41.00 $ 0.03 9

II. Budget Report Variance Report: Budget Actual Variance Nov-13 Nov-13 Gross Load 54,592 57,460 (2,868) Power Supply Hedged Energy $1,675,700 $2,145,418 ($469,718) PJM - Energy, Congestion & Losses $963,464 $360,480 $602,984 PJM - ARR, Transmission and Fees $395,000 $687,038 ($292,038) Dover SUN Park Energy $79,374 $99,447 ($20,073) Dover SUN Park RECs $25,000 $25,307 ($307) Management Fees $83,000 $83,000 $0 PJM - Capacity UCAP Obligated Purchased $1,343,442 $1,319,528 $23,915 Subtotal - Power Supply $4,564,981 $4,720,218 ($155,238) Power Generation O&M Plant O&M $546,330 $380,677 $165,653 Subtotal Generation O&M $546,330 $380,677 $165,653 Power Generation Production Margin PJM - Economic and reliability dispatch $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 ($1,286,250) $ (1,286,250.00) $0 Emissions Allowance Sales $0 $ - $0 PJM - Black Start & Transmission Losses ($35,580) $ (49,646.57) $14,067 Subtotal - Non-Production Revenue ($1,321,830) ($1,335,897) $14,067 SubTotal - All Generation (775,500.00) ($955,220) $179,720 Total - Utilities Cost $3,789,481 $3,764,999 $24,482 Unit Costs Total - Power Supply $83.62 $82.15 $1.47 Total - Power Generation ($14.21) ($16.62) $2.42 Final Cost of Service to City of Dover Ratepayers $69.41 $65.52 $3.89 10

Variance Analysis: Power Supply  Dover consumed 2,868 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.  The result of the higher overall cost for reactive services was offset by lower than expected market purchases. Hedges were placed at below budget levels resulting in a net power supply cost of $82.15/MWh, $1.47/MWh below budget.  For the month, the city realized an unfavorable variance of $155,238 for power supply vs. the monthly budget.  Dover Sun Park generated 59 MWh more than forecast. Generation  Power generation had a favorable budget variance of $179,720.  Plant O&M expenses had a favorable budget variance of $165,653 for the month. 11

YTD Variance Report: Budget Actual Variance YTD YTD Gross Load 330,269 332,355 (2,086) Power Supply Hedged Energy $12,869,394 $13,913,824 ($1,044,430) PJM - Energy, Congestion & Losses $4,489,373 $3,484,428 $1,004,945 PJM - ARR, Transmission and Fees $1,975,000 $3,304,596 ($1,329,596) Dover SUN Park Energy $622,620 $788,933 ($166,313) Dover SUN Park RECs $125,000 $193,132 ($68,132) Management Fees $415,000 $415,000 $0 PJM - Capacity UCAP Obligated Purchased $6,851,556 $6,729,513 $122,043 Subtotal - Power Supply $27,347,943 $28,829,425 ($1,603,526) Power Generation O&M Plant O&M $2,516,396 $2,412,851 $103,545 Subtotal Generation O&M $2,516,396 $2,412,851 $103,545 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 ($6,559,875) ($6,559,875) $0 Emissions Allowance Sales $0 $0 $0 PJM - Black Start & Transmission Losses ($177,900) ($401,978) $224,078 Subtotal - Non-Production Revenue ($6,737,775) ($6,961,853) $224,078 SubTotal - All Generation ($4,451,851) ($5,459,577) $1,007,727 Total - Utilities Cost $22,896,092 $23,369,848 ($473,756) Unit Costs Total - Power Supply $82.81 $86.74 ($3.94) Total - Power Generation ($13.48) ($16.43) $2.95 Final Cost of Service to City of Dover Ratepayers $69.33 $70.32 ($0.99) 12

III. Operations Management NAES Corporation Dover, Delaware November 2013 Monthly Report Gary Shisler and Tom Lally (Newly hired Plant Operations Staff members) 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 November, there were no restricted work days or lost time accidents. Plant staff is finalizing plans for the celebration of successfully completing Three Years of being Accident Free. The facility has now gone 3 years and 45 days (1,140 days) through November 30, 2013 without an OSHA Recordable Accident or a Lost Time reportable accident. The plant received no Notice of Violations (NOVs) during the month. The November (October Discharge) DMR was submitted for the McKee Run site with no NPDES exceedences. There were no IWW discharges to the Kent County Sewer. Kent County has requested PCB sampling to be conducted on an annual basis. Scheduling of this activity is slated for December 2013. Environmental, Health, and Safety Statistics Month Fiscal Year to Date (November) (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 3,941.50 21,087.75 Date last OSHA Recordable 10/14/10 Date last Lost Time Accident 10/14/10 Days since last OSHA recordable 1,140 Days since last Lost Time Accident 1,140 15

Emissions (NOx & SO2) All data thru 11/30/13 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 15,032 514 8,726 6,820 Total CO2 Allowance Balance 111,325 *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. 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 53/29 4/2 Total NOx Allowance Balance 161/49 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 – November Actual Budget Variance Personnel 233,301 456,365 223,064 Materials & Supplies 7,239 8,725 1,486 Administrative Expenses 140,137 99,390 (40,747) Total $380,677 564,480 $183,803 Financial – Fiscal Year to Date Number of Months – 5 Actual Budget Variance Personnel 1,227,747 1,445,880 218,133 Materials & Supplies 90,352 135,515 45,163 Administrative Expenses 914,788 953,976 39,188 Total $2,232,887 2,535,371 $302,484 2.1 Variance analysis: The actual expenses for the month of November are $380,677 against a budgeted amount of $564,480 for a favorable variance of $183,803 or 32.56%. The variance was due to the following: PERSONNEL EXPENSES – A favorable monthly variance of $233,064 was due to having two (2) payroll periods expensed in this month and three (3) were budgeted. This includes straight time labor, overtime labor, and labor burden costs for November. MATERIALS AND SUPPLIES EXPENSES- A favorable monthly variance of $1,486 was due to lower water / sewer costs than budgeted. ADMINISTRATIVE EXPENSES – An unfavorable monthly variance of $40,747 was due to timing of invoices for the stack emission testing and for the purchase of air compressor maintenance kits that were budgeted later in the fiscal year. The forecasted expenses for this fiscal year are $5,941,916 expensed versus an approved budget of $6,015,800 thereby realizing a 98.77 % expenditure rate. 18

3.0 Operations Unit Operations / Outages / Trips In the month of November, no units were dispatched. Units 1, 2, 3, and 11 Fall 2013 outage was cleared on November 27th at 0700 hours. All units are now available for dispatch. Month November 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 25.406 25.406 116.807 167.617 3.463 171.080 Auxiliaries purchased MWh 25.406 25.406 116.807 167.617 3.463 171.080 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 % 12.34 12.34 12.34 12.34 12.34 12.34 Commercial % 0 0 0 0 0 0 Unavailability (CU) Planned Outage Hours Hours 632.000 632.000 632.000 1,896.000 632.000 2,528.000 Maintenance Outage Hours 0.0 0.0 0.0 0.0 0.0 0.0 Hours Forced Outage Hours Hours 0.0 0.0 0.0 0.0 0.0 0.0 Reserve Shutdown Hours 89.00 89.00 89.00 267.00 89.00 356.00 Hours HW Boiler Gas Usage MMBTU 869.408 869.408 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 - October 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 160.160 202.167 1,788.995 2,151.322 7.825 2159.147 Auxiliaries purchased MWh 163.082 205.612 797.313 1,166.007 6.564 1,172.570 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 % 0.87 1.64 3.09 2.63 1.09 2.29 Availability Factor % 60.55 62.73 62.73 62.00 62.73 62.18 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 2,149.235 2,133.684 2,123.400 6,406.319 2,252.524 8,658.843 Hours HW Boiler Gas Usage MMBTU 869.408 869.408 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) 428,288 426,525 0 (1,763) 454,725 0 (28,200) VanSant 124,390 123,674 0 (716) 146,133 0 (22,459) (#2 Fuel Oil) Note: As measured by tank level instruments. Tank levels may change due to oil temperature. VanSant Lifetime through November 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: 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. The Operations staff continues to support maintenance activities during the planned outage by serving as Confined Space Attendants for confined space areas as well as other support tasks. The Operations staff has also supported the outage by clearing various LO/TO tasks to put equipment back in service to make the units available to the PJM system. 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 November, the Plant Maintenance staff continued addressing the backlog of work orders and preparing for outage activities. There were thirty-nine work orders issued with fifty-six work orders being completed during the month. There was 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 November - 2013 Outstanding From Outstanding Previous Issued This Completed at the end of Priority # Month Month This Month the month 1 8 1 4 5 2 42 10 17 35 3 41 0 6 35 4 6 0 0 6 5 19 0 2 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 41 28 27 42 Totals 157 39 56 140 Note: PM Work Orders are included in the priority totals Notable activities during the month include:  Fall Outage was cleared on November 27, 2013. Work completed in the outage included boiler inspections, repair of an oil leak on the turbine oil system, repairs to the neutralization pit liner, and numerous Preventative Maintenance activities.  The NAES Maintenance Staff and APEX Piping Systems completed the removal of the defective boiler drain piping and valves on Unit 3. New boiler drain piping and valves were installed. Pipe hangers were adjusted to allow water to flow down to the blow down tank and neutralization pit.  The NAES Maintenance Staff adjusted several pipe hangers on the Hot Reheat Line, Cold Reheat Line and the Main Steam Line. These adjustments were 22

completed in accordance with recommendation included in the report from Intertek-Aptech that is part of the HEP/FAC Program.  On normal operational rounds at the VanSant Generating Station, Operations Staff noticed a noise coming from the main lube oil pump. The pump was checked out by the Maintenance Staff and it was determined that the bearings in the motor and the pump were damaged. The Maintenance and IC&E staffed changed out the pump and motor and was put back into service with no issues. 5.0 Capital Improvement Projects (CIP) Project Description Update Number Progress: Work is complete 99%. MR Industrial Waste Schedule: Project to be complete in December, 2013 with the final EG1214 water System revisions of the system’s Standard Operating Procedures and Sampling Procedures in place. Unit #3 Cooling Progress: Work is 100% complete EG1402 Tower Repairs Schedule: Work is 100% complete excepting closeout in HTE. McKee Run Progress: Work planned for the Fall is 90% complete. Auxiliary Schedule: Remaining Fall outage items will be completed in the EG1404 Component December time period. 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: Hangar adjustments have been completed. Some scaffold will remain in place until the unit is heated up at which time the McKee Run HEP adjustments will be checked in the hot (running) position. EG1406 Pipe Repairs Schedule: Fall work activities should be complete in December. Adjustments will need to be checked once units are heated up. Spring work still being planned. Progress: Proposal received from vendor. COD and plant personnel have discussed proposal and submitted a list of “to do” items to the Metering System EG1407 vendor for more information and clarification. Upgrades Schedule: Work activities are moving forward. Additional questions have been posed to vendor and work scope is being developed. Progress: Work is being planned to be completed in the Spring 2014 McKee outage period. EG1408 Run/VanSant Safety Schedule: Work activities are slightly behind due to Fall Outage Compliance Items activities. 23

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. Progress: Crane specifications being developed and were put out for bid in late November. McKee Schedule: Work activities are progressing forward. Bids are due on EG1410 Run/VanSant Crane December 13 after which an analysis of the proposals will be Replacement conducted. Estimated time period for purchase of crane is approximately January 2014. 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. Progress: Work scope was developed, put out for bids and bids have been evaluated. A recommendation was submitted to the COD City Unit 3 Turbine Council for review and approval at their December 9 Council EG1212 Repairs meeting. Schedule: List of consumables has been finalized, quotes received and parts have been placed on order. Progress: Cost to be incurred due to repairs on Unit 1 boiler and McKee Run Units turbine expected to be complete 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 VanSant Capacity EG1416 Capacity increase request is in the PJM queue. Increase Schedule: Environmental Support contract work was awarded and data is now being gathered by the contractor for use in the environmental application process. 24

6.0 General Plant Information On November 4, Gary Shisler started work at McKee Run as an Operator in the Operations Department. Gary was once with the Liberty plant when NAES operated that facility. Tom Lally, another new hire, is slated to start on December 3 once he has been cleared through the physical and background screening process. Ron Dove, Compliance Coordinator, submitted his resignation with his last day being November 25. Plant staff is now working on filling his position. Plant staff continues to interview prospective applicants for the position of Administrative Assistant. Training: Topics discussed during the monthly safety committee meeting were reviewed by the entire staff. The monthly safety topic was on “Four Seconds To Safety”. Topics discussed during the monthly safety committee meeting were reviewed by the entire staff. OES-NA was on site for PJM simulation training. PJM requires thirty (30) simulation hours (credits) in order to maintain the three year Generation System operator certification. The only method to receive these credits is to attend a PJM System Operator seminar or to have qualified training observed by PJM. Voltage Control, Congestion Management, and Emergency Operations are some of the topics covered in the two day class using laptops. Five operators and one supervisor attended the class from the plant staff. This class will supply the operator attendees with fourteen (14) simulation credits. Calendar of Events Date Winter Capacity Period December 1, 2013 to February 28, 2014 Annual Title V Certifications Due January 30, 2104 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 r 26

IV. Appendix 1 – PJM Invoice Breakdown Gen Load Grand Total Auction Revenue Rights ($26,010.90) ($26,010.90) Balancing Operating Reserve $8,942.57 $8,942.57 Balancing Operating Reserve for Load Response $10.09 $10.09 Balancing Spot Market Energy $120,514.22 $120,514.22 Balancing Transmission Congestion $3,073.30 $3,073.30 Balancing Transmission Losses $5,179.20 $5,179.20 Black Start Service $1,912.52 $1,912.52 Capacity Resource Deficiency ($131.10) ($131.10) Capacity Transfer Rights ($18,612.90) ($18,612.90) CT Lost Opportunity Cost Allocation ($16.80) ($16.80) Day-Ahead Load Response Charge Allocation $382.23 $382.23 Day-ahead Operating Reserve $2,261.64 $2,261.64 Day-ahead Scheduling Reserve $4.90 $4.90 Day-ahead Spot Market Energy $321,601.30 $321,601.30 Day-ahead Transmission Congestion $13,055.35 $13,055.35 Day-ahead Transmission Losses $38,476.70 $38,476.70 Demand Resource and ILR Compliance Penalty ($657.30) ($657.30) Emergency Load Response $163.76 $163.76 Expansion Cost Recovery $427.50 $427.50 FERC Annual Recovery $3,433.27 $3,433.27 Generation Deactivation Refund ($758.19) ($758.19) Inadvertent Interchange ($1,010.09) ($1,010.09) Incremental Capacity Transfer Rights ($1,704.30) ($1,704.30) Load Reconciliation for Balancing Operating Reserve ($514.52) ($514.52) Load Reconciliation for Day-ahead Scheduling Reserve ($1,227.41) ($1,227.41) Load Reconciliation for FERC Annual Recovery ($98.69) ($98.69) Load Reconciliation for Inadvertent Interchange $53.45 $53.45 Load Reconciliation for Market Monitoring Unit (MMU) Funding ($6.35) ($6.35) Load Reconciliation for Non-Synchronized Reserve ($59.95) ($59.95) Load Reconciliation for North American Electric Reliability Corporation (NERC) ($16.59) ($16.59) Load Reconciliation for Organization of PJM States, Inc. (OPSI) Funding ($1.14) ($1.14) Load Reconciliation for PJM Scheduling, System Control and Dispatch Service ($342.50) ($342.50) Load Reconciliation for PJM Scheduling, System Control and Dispatch Service Refund $11.95 $11.95 Load Reconciliation for Reactive Services ($2,822.34) ($2,822.34) Load Reconciliation for Regulation and Frequency Response Service ($994.56) ($994.56) Load Reconciliation for Reliability First Corporation (RFC) ($23.72) ($23.72) Load Reconciliation for Schedule 9-6 - Advanced Second Control Center ($43.14) ($43.14) Load Reconciliation for Spot Market Energy ($176,414.02) ($176,414.02) Load Reconciliation for Synchronized Reserve ($1,613.13) ($1,613.13) Load Reconciliation for Transmission Congestion $51,306.00 $51,306.00 Load Reconciliation for Transmission Losses ($2,762.96) ($2,762.96) Load Reconciliation for Transmission Owner Scheduling, System Control and Dispatch Service ($123.23) ($123.23) Locational Reliability $1,339,975.80 $1,339,975.80 Market Monitoring Unit (MMU) Funding $226.04 $226.04 Meter Error Correction ($3,246.45) ($3,246.45) Michigan - Ontario Interface Phase Angle Regulators $197.60 $197.60 Network Integration Transmission Service $331,131.30 $331,131.30 Non-Firm Point-to-Point Transmission Service ($602.66) ($602.66) Non-Synchronized Reserve $143.17 $143.17 North American Electric Reliability Corporation (NERC) $577.02 $577.02 Organization of PJM States, Inc. (OPSI) Funding $39.82 $39.82 PJM Annual Membership Fee $5,000.00 $5,000.00 PJM Scheduling, System Control and Dispatch Service - Advanced Second Control Center $1,674.03 $1,674.03 PJM Scheduling, System Control and Dispatch Service - Capacity Resource/Obligation Mgmt. $913.50 $913.50 PJM Scheduling, System Control and Dispatch Service - Control Area Administration $9,763.16 $9,763.16 PJM Scheduling, System Control and Dispatch Service - Market Support $2,229.43 $2,229.43 PJM Scheduling, System Control and Dispatch Service - Market Support Offset ($213.52) ($213.52) PJM Scheduling, System Control and Dispatch Service - Regulation Market Administration $83.96 $83.96 PJM Scheduling, System Control and Dispatch Service Refund - Capacity Resource/Obligation Mgmt. ($308.11) ($308.11) PJM Scheduling, System Control and Dispatch Service Refund - Control Area Administration ($3,683.16) ($3,683.16) PJM Scheduling, System Control and Dispatch Service Refund - Market Support ($856.97) ($856.97) PJM Scheduling, System Control and Dispatch Service Refund - Regulation Market Administration ($39.52) ($39.52) PJM Settlement, Inc. $213.52 $213.52 Reactive Services $288,960.69 $288,960.69 Reactive Supply and Voltage Control from Generation and Other Sources Service ($29,467.58) $34,991.62 $5,524.04 Real-Time Load Response Charge Allocation $340.98 $340.98 Regulation and Frequency Response Service $9,309.79 $9,309.79 Reliability First Corporation (RFC) $825.14 $825.14 RPM Auction ($1,286,250.00) ($1,286,250.00) Synchronized Reserve $5,385.07 $5,385.07 Synchronous Condensing $0.11 $0.11 Transmission Enhancement $4,883.03 $4,883.03 Transmission Losses ($20,178.99) ($20,178.99) Transmission Owner Scheduling, System Control and Dispatch Service $4,287.23 $4,287.23 Grand Total $ (1,335,896.57) $ 2,367,045.74 $1,031,149.17 27

V. Appendix 2 – PJM Invoice Summary Bill Issued 11/12/2013 11/19/2013 11/26/2013 12/3/2013 12/6/2013 Weekly Bill 1st Weekly Bill 2nd Weekly Bill 3rd Weekly Bill 4th Weekly Bill Monthly GL Account #'s Production Dates 11/1 11/7 11/14 11/21 11/28 Total 11/6 11/13 11/20 11/27 11/30 480-8102-592-95-49 PJM - Capacity UCAP Obligated Purchased (LOAD) $ 263,905.50 $ 307,889.75 $ 307,889.75 $ 307,889.75 $ 131,952.75 $ 1,319,527.50 480-8102-592-95-50 PJM - Generation Capacity Credit (GEN) $ (257,250.00) $ (300,125.00) $ (300,125.00) $ (300,125.00) $ (128,625.00) $(1,286,250.00) 480-8102-592-95-90 PJM - ARR, Transmission and Fees (LOAD) $ 61,020.72 $ 71,190.84 $ 71,190.84 $ 71,190.84 $ 412,444.89 $ 687,038.13 480-8102-592-95-91 PJM - Energy, Congestion, and Losses (LOAD) $ 74,748.21 $ 102,738.52 $ 91,342.99 $ 169,292.06 $ (77,641.67) $ 360,480.11 480-8102-592-95-92 PJM - Economic and reliability dispatch (GEN) $ - $ - $ - $ - $ - $ - 480-8102-592-95-93 PJM - Black Start & Transmission Losses (GEN) $ (3,649.31) $ (4,460.85) $ (4,272.63) $ (5,592.94) $ (31,670.84) $ (49,646.57) Net Due/From PJM $ 138,775.12 $ 177,233.26 $ 166,025.95 $ 242,654.71 $ 306,460.13 $ 1,031,149.17 28

City of Dover Electric Revenue Fund FY14 - White Oak Solar Park Incremental Cost Original July August September October Nov ember YTD Budget Power Supply & Generation Dover Sun Park - Energy $ 187,421 $ 176,372 $ 204,852 $ 120,839 $ 99,447 $ 788,931 $ 1,565,800 Dover Sun Park - REC's 43,005 38,516 42,894 25,307 - 149,722 300,000 Total Power Supply Cost 230,426 214,888 247,746 146,146 99,447 938,653 1,865,800 Non-Solar Power Supply Cost (180,227) (154,545) (154,590) (100,770) (83,724) (673,856) (689,650) Incremental Energy Cost $ 50,199 $ 60,343 $ 93,156 $ 45,376 $ 15,723 $ 264,798 $ 1,176,150 Revenues Customer Sales - Electricity (9,404) (7,389) (7,538) (7,662) (7,721) (39,714) (26,300) Rent Receipts (14,446) - - (14,446) - (28,892) (58,300) Total Revenues (23,850) (7,389) (7,538) (22,108) (7,721) (68,606) (84,600) Incremental Sun Park Cost $ 26,349 $ 52,954 $ 85,618 $ 23,268 $ 8,002 $ 196,192 $ 1,091,550 MWh Purchased/Generated - Solar 2,052.584 1,815.656 2,000.128 1,179.844 970.972 8,019.184 18,159.000 MWh $ Solar Energy $ 91.31 $ 97.14 $ 102.42 $ 102.42 $ 102.42 $ 98.38 $ 86.23 Solar REC's MWh 307.000 272.000 300.000 177.000 - 1,056.000 MWh $ Solar REC (one month lag)* $ 140.08 $ 141.60 142.98 142.98 $ - $ 141.78 MWh $ Non-Solar Energy $ 87.81 $ 85.12 $ 77.29 $ 85.41 $ 86.23 Note: Solar REC's are one month behind due to the time the invoice is received.