Attachment

UTILITY COMMITTEE AGENDA NOVEMBER 13, 2012 - 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. Water Quality and Inflow and Infiltration (I & I) Updates 2. Quarterly Review of Utility Related Capital Investment Plan (CIP) (Electric and Water/Wastewater) (July, August, and September) 3. TEA/NAES Report (August) 4. Updates A. Garrison Oak Technical Park Project 5. Adjournment by 5:25 P.M. /tm S:\AGENDAS-MINUTES-PACKETS\Committee-Agendas\2012\11-13-2012 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.

1 of 5 City of Dover Capital Investment Plan Project Tracking Report September 30, 2012 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 $ 92,000 $ 298,800 $ 4,508,500 $ 234,700 $ 5,134,000 Budget Balance - Restricted MSA (non Public Safety) 132,200 - - - 132,200 Library Funding - FY11 Budget Balance (127,000) - - - (127,000) Federal and/or State Grants 1,746,000 - - - 1,746,000 Transfer from Library Foundation 71,000 - - - 71,000 Friends of the Library Donation 102,400 - - - 102,400 Kent County Library Contribution 250,000 - - - 250,000 Sale of Assets - Library 1,200,000 - - - 1,200,000 Debt Financing - Green Energy Components 648,500 648,500 Construction Loan 289,400 - - - 289,400 Community Transportation Fund - FY11 Balances - 1,630,050 - - 1,630,050 Debt Financing 4,000,000 - 4,000,000 - 8,000,000 Other State/Federal Grants 108,000 - - - 108,000 Police Grants 33,800 - - - 33,800 Transfer from Capital Reserves - - - 550,000 550,000 Impact Fee Reserves - - 550,000 - 550,000 State Community Transportation Funds - 700,000 - - 700,000 Transfer Loan Proceeds to CT Fund - Street Program - 1,606,700 - - 1,606,700 Transfer from Operating Funds 613,400 - 2,900,000 3,500,000 7,013,400 Interest Income - - 25,000 40,700 65,700 Total Funding Sources (Unaudited) $ 9,159,700 $ 4,235,550 $ 11,983,500 $ 4,325,400 $ 29,704,150

City of Dover General Fund - Major CIP Projects 2 of 5 September, 2012 TOTAL PROJECT - PAST, CURRENT & FUTURE BUDGETS CURRENT FISCAL YEAR Original Latest Project Project Current Revised Fiscal Project Project Project To Date Budget % Budget Fiscal Yr. Fiscal Yr. YTD % Budget Code Type Description Budget Budget Expenses Balance Spent Budget Budget Expenses Spent Status Comments FY2009 LB0901 M/G/L New Library Project $ 18,200,000 $ 20,469,080 $ 17,230,752 $ 3,238,328 84.2% $ 2,535,000 $ 4,180,300 $ 941,972 22.5% In Process Overall project 80% Complete on 7/31/12 ST1203 Dump Truck Refurbishment 30,000 24,000 20,354 3,646 84.8% - 12,000 8,333 69.4% In Process FY12 MSA - Capital non-safety - 132,200 - 132,200 200.0% - 132,200 - 0.0% Restricted MSA Funding Totals - FY09 $ 18,230,000 $ 20,625,280 $ 17,251,106 $ 3,374,174 83.6% $ 2,535,000 $ 4,324,500 $ 950,305 22.0% FY2013 --- Vehicles & Equipment $ 399,900 $ 399,900 $ 70,062 $ 329,838 17.5% $ 399,900 $ 399,900 $ 70,062 17.5% --- Annual Fire Truck Payments 238,500 238,500 96,275 142,225 40.4% 238,500 238,500 96,275 40.4% Mayor Security Cameras 33,000 33,000 - 33,000 0.0% 33,000 33,000 - 0.0% FC1302 B/L City Hall Fire Suppression 288,000 288,000 - 288,000 0.0% 288,000 288,000 - 0.0% Financed by PNC Loan - FY12 FC1303 G City Hall Emergency Generator 93,000 93,000 - 93,000 0.0% 93,000 93,000 - 0.0% DEMA Grant funded; IT1301 G Server & Backup Solution 57,000 57,000 - 57,000 0.0% 57,000 57,000 - 0.0% $15K is DEMA grant funded; PR1301 Dover Park- Roof Replacement 30,000 30,000 - 30,000 0.0% 30,000 30,000 - 0.0% ST1303 B/L Salt Storage Facility-Schutte Park 50,000 50,000 - 50,000 0.0% 50,000 50,000 - 0.0% Financed by PNC Loan - FY12 ST1304 B/L Garrison Farm Improvements 1,924,000 1,924,000 - 1,924,000 0.0% 1,924,000 1,924,000 - 0.0% Financing to be determined PD1301 G Police Elec Breaker Rplcmnt 33,800 33,800 - 33,800 0.0% 33,800 33,800 - 0.0% Police Grant funded PD1302 B/L Police Micro Seal Parking Lots 25,300 25,300 - 25,300 0.0% 25,300 25,300 - 0.0% Financed by PNC Loan - FY12 Totals - FY12 $ 2,501,100 $ 2,501,100 $ - $ 2,501,100 0.0% $ 3,172,500 $ 3,172,500 $ 166,337 5.2% Debt issuance cost - PNC/Other 56,000 56,000 - 56,000 0.0% 56,000 56,000 - 0.0% Transfer to CT Fund - Streets 1,606,700 1,606,700 - 1,606,700 0.0% 1,606,700 1,606,700 - 0.0% PNC Loan for FY12/FY13 Street Prog. Grand Totals $ 22,393,800 $ 24,789,080 $ 17,251,106 $ 7,537,974 69.6% $ 7,370,200 $ 9,159,700 $ 1,116,641 12.2% 12.2% 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;

City of Dover Community Transportation & General Fund Street Funds - Major CIP Projects 3 of 5 September, 2012 TOTAL PROJECT - PAST, CURRENT & FUTURE BUDGETS CURRENT FISCAL YEAR Original Latest Project Project Current Revised Fiscal Project Project To Date Budget % Budget Fiscal Yr. Fiscal Yr. YTD Budget % Budget Type Description Budget Budget Expenses Balance Spent Budget Budget Expenses Balance Spent Status Comments FY 2002 North Street sidewalk $ 80,400 $ 80,400 $ - $ 80,400 0.0% $ - $ 80,400 $ - 0.0% Waiting on DDP improvements Totals $ 80,400 $ 80,400 $ - $ 80,400 0.0% $ - $ 80,400 $ - 0.0% FY 2009 Little League Park paving $ 11,600 $ 11,600 $ - $ 11,600 0.0% $ - $ 11,600 $ - 11,600 0.0% Re-program for signage Totals $ 11,600 $ 11,600 $ - $ 11,600 0.0% $ - $ 11,600 $ - $ 11,600 0.0% FY 2007 E. Water Street Brick $ 65,000 $ 65,000 $ - $ 65,000 0.0% $ - $ 65,000 $ - 0.0% Specialty contract needed. Totals $ 65,000 $ 65,000 $ - $ 65,000 0.0% $ - $ 65,000 $ - 0.0% FY 2009 M Schutte Parking Lot $ 21,950 $ 21,950 $ - $ 21,950 0.0% $ - $ 21,950 $ - 21,950 0.0% Deferred Totals $ 21,950 $ 21,950 $ - $ 21,950 0.0% $ - $ 21,950 $ - $ 21,950 0.0% FY2012 M North Street Roundabout $ - $ 500,000 $ - $ 500,000 0.0% $ - $ 500,000 $ - 0.0% 35% Site work initiated. Stoney Creek Lighting - 40,000 - 40,000 100.0% - 40,000 - 0.0% M Lincoln Park Center 900,000 1,423,500 516,260 907,240 0.0% - 911,100 3,932 0.4% Started Street & Alley Program 300,000 298,800 - 298,800 100.0% - 298,800 - 0.0% General Fund Appropriaitons Totals $ 1,200,000 $ 2,262,300 $ 516,260 $ 1,746,040 22.8% $ - $ 1,749,900 $ 3,932 $ - 0.0% FY2013 Unapplied CT Projects (placeholder) $ 700,000 $ 700,000 $ - $ 700,000 0.0% $ 700,000 $ 700,000 $ - 0.0% Future CT Agreements FY13 Concrete Program 60,000 60,000 - 60,000 0.0% 60,000 60,000 1,933 3.2% Financed by PNC Loan - FY12 FY12/FY13 Street & Alley Program 1,546,700 1,546,700 - 1,546,700 0.0% 1,546,700 1,546,700 - 0.0% Financed by PNC Loan - FY12 $ 2,306,700 $ 2,306,700 $ - $ 2,306,700 0.0% $ 2,306,700 $ 2,306,700 $ 1,933 $ - 0.1% Grand Totals $ 3,593,650 $ 4,655,950 $ 516,260 $ 4,139,690 11.1% $ 2,306,700 $ 4,235,550 $ 5,865 $ 21,950 0.3% Legend M = Multi-year project - a project with a specific schedule to occur over multiple years. R = Recurring project - a project that begins and ends each fiscal year and is re-budgeted to start over each fiscal year. 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

City of Dover Water/Wastewater Improvement & Extension Fund - Major CIP Projects 4 of 5 September, 2012 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 Yr. Fiscal Yr. YTD Budget % Code Type Description Budget Budget Expenses Balance Spent Budget Budget Expenses Spent Complete Comments FY 2008 WD0804 M 1.0 MG Elevated Water Storage $ 4,196,600 $ 2,590,000 $ 17,839 $ 2,572,161 0.7% $ 2,000,000 $ 2,166,000 $ 4,914 0.2% Started Staff reviewing agreement docs WD0805 M Piney Point Well 398,800 665,000 7,284 657,716 1.1% 450,000 505,600 556 0.1% Started Staff reviewing RFP Totals - FY08 $ 4,595,400 $ 3,255,000 $ 25,123 $ 3,229,877 0.8% $ 2,450,000 $ 2,671,600 $ 5,470 0.2% FY2009 WQ0907 SL/C Rt. 13 Water Main 1,023,700 2,214,600 2,078,383 136,217 93.8% - 192,600 20,056 10.4% 100.0% Complete; Awating final charges FY2010 WW1007 M/SL Fox Hall Pump Station 427,900 358,900 273,226 85,674 76.1% - 144,800 59,139 40.8% 98.0% Final punchlist items outstanding WW1010 I Tar Ditch Interceptor Upgrade 518,230 495,400 5,143 490,257 1.0% - 490,300 0.0% Started Easement request sent to residents Totals - FY10 $ 427,900 $ 358,900 $ 273,226 $ 85,674 76.1% $ - $ 635,100 $ 59,139 9.3% FY2011 WW1104 SL Lepore Road P/S Replacement 350,000 402,000 17,850 384,150 4.4% - 384,200 - 0.0% Started Contractor ordered Station; Totals - FY11 $ 350,000 $ 402,000 $ 17,850 $ 384,150 4.4% $ - $ 384,200 $ - 0.0% FY2012 WD1201 Pay-As-You-Go Water Station 30,200 30,200 - 30,200 0.0% - 30,200 - 0.0% Started Specs being developed WQ1202 WQI - New Street - 113,960 26,600 87,360 0.2334 - 87,400 - 0.0% Started Project on hold - Design complete WQ1203 WQI - Silver Lake - 279,840 190,030 89,810 67.9% - 90,800 1,032 1.1% 100.0% Complete; Awaiting final charges WW1201 M/SL Inflow/Infiltration Removal (1) 1,000,000 971,900 55,075 916,825 5.7% - - - 0.0% See FY13 I & I Program; $916.800 WW1202 M SCADA Equpment Upgrade 84,900 84,900 76,389 8,511 90.0% 29,300 29,300 0.0% Started Awaiting delivery of materials WW1204 M Baltray Pump Station Rplcmnt 125,000 125,000 20,581 104,419 16.5% 100,000 100,000 0.0% Started Project on hold - Bid specs ready WW1205 M Dover Brook Gardens Pump Station 65,000 65,000 12,194 52,806 18.8% 50,000 50,000 2,342 4.7% Started Project on hold - Bid specs ready WW1206 M Brandywine Pump Station Rplcmntq 402,000 402,000 33,582 368,418 8.4% 350,000 350,000 0.0% Started Project on hold - Bid specs ready WW1207 M McKee Pump Station Comm Rplcmt 55,000 55,000 7,431 47,569 13.5% 45,000 45,000 0.0% Started Project on hold - Bid specs ready Totals - FY12 $ 1,762,100 $ 2,127,800 $ 421,882 $ 1,705,918 99.2% $ 574,300 $ 782,700 $ 3,374 0.4% FY2013 --- Vehicles & Equipment $ 524,500 $ 524,500 $ - $ 524,500 0.0% $ 524,500 $ 524,500 $ - 0.0% Started All ordered or bid; WW1301 M Hazlettville Road Interceptor 770,000 770,000 - 770,000 0.0% 30,000 30,000 - 0.0% Not started Project on hold WW1302 M Lakeview Drive PS Replacement 502,000 502,000 - 502,000 0.0% 52,000 52,000 - 0.0% Not started Project on hold WW1303 M Westover Pump Station 768,800 768,800 - 768,800 0.0% 65,000 65,000 - 0.0% Not started Project on hold WW1304 M Garrison Farm Improvements 1,828,000 1,828,000 - 1,828,000 0.0% 1,828,000 1,828,000 - 0.0% Started Pending Council approval 9/24 WD1302 M Garrison Farm Storage Tank 1,828,000 1,828,000 - 1,828,000 0.0% 1,828,000 1,828,000 - 0.0% Started Pending Council approval 9/24 WD1304 Future Columbia Well Design 55,000 55,000 - 55,000 0.0% 55,000 55,000 - 0.0% Not started Project on hold WD1301 R Wellhead Redevelopment 70,000 70,000 67,675 2,325 96.7% 70,000 70,000 67,675 0.0% 15.0% Contractor finishing Well 10 & 14 WQ1301 North Street WMR 45,000 45,000 33,335.00 11,665 74.1% 45,000 45,000 33,335 0.0% N/A Water Quality Improvements 479,000 479,000 - 479,000 0.0% 479,000 479,000 - 0.0% Locations to be determined; N/A I & I Improvements (1) 1,000,000 27,000 - 27,000 0.0% 1,000,000 943,800 - 0.0% Locations to be determined; II1301 New/Reed Street - 330,000 43,941 - 330,000 43,941 0.0% 65.0% Contractor finishing New Street II1302 Fox Hall - 142,000 - - 142,000 - 0.0% Scheduled II1303 Morris Estates - 276,000 - - 276,000 - 0.0% Scheduled II1304 Wesley College - 10,000 7,200 - 10,000 7,200 72.0% Scheduled II1305 NRG sanitary sewer upgrade - 175,000 - - 175,000 - 0.0% Not started Bids due 10/4/12 II1306 I & I Design - 40,000 4,025 - 40,000 4,025 10.1% In progess Staff reviewing consultant report WD1306 R Emergency Generators 80,000 80,000 - 80,000 0.0% 80,000 80,000 - 0.0% 85.0% Start on bid docs 10/1/12 $ 7,950,300 $ 7,950,300 $ 156,176 $ 6,876,290 0.0% $ 6,056,500 $ 6,973,300 $ 156,176 2.2% N/A Debt issuance cost-Garrison Farm 344,000 344,000 - 344,000 0.0% 344,000 344,000 - 0.0% Grand Totals $ 16,453,400 $ 16,652,600 $ 2,972,639 $ 12,762,127 17.9% $ 9,424,800 $ 11,983,500 $ 244,214 2.0% Legend (1) Transferred remaining project balance from FY12 to the FY13 I & I Project $916,800 M = Multi-year project - a project with a specific schedule to occur over multiple years. Adjusted Project Budget for FY13 will be $1,916,800 for I & I; Locations to be determined; 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

City of Dover 5 of 5 Electric Improvement & Extension Fund - Major CIP Projects September, 2012 TOTAL PROJECT - PAST, CURRENT & FUTURE BUDGETS CURRENT FISCAL YEAR Original Latest Project Project % Current Revised Fiscal % Project Project Project To Date Budget Budget Fiscal Yr. Fiscal Yr. YTD Budget Code Type Description Budget Budget Expenses Balance Spent Budget Budget Expenses Spent Status Comments FY2012 EE1205 M Frazier Substation Upgrade $ 765,200 $ 765,200 $ 211,314 $ 553,886 27.6% $ 610,200 $ 611,800 $ 57,955 9.5% In process Materials ordered EG1202 M Unit 3 Boiler Systems 390,000 250,000 84,409 165,591 33.8% 129,000 167,300 1,757 1.1% In process Will complete Spring outage; EG1212 M Unit 3 Turbine Inspection/Repair 1,494,000 1,494,000 403,190 1,090,810 27.0% 115,000 115,000 6,367 5.5% In process Will complete Spring outage; EG1214 M Industrial WW Discharge System 272,000 272,000 35,255 236,745 13.0% - 242,000 4,910 2.0% In process EU1202 M Persimmon Tree Lane Feeder Rplcmt 113,500 113,500 111,828 1,672 98.5% - 8,500 8,279 97.4% In process EG1204 Unit 3DCS Comp & Softwre - 3,075 Total $ 3,034,700 $ 2,894,700 $ 845,996 $ 2,048,704 29.2% $ 854,200 $ 1,144,600 $ 82,343 7.2% FY2013 N/A R Vehicles & Equipment $ 146,000 $ 146,000 $ - $ 146,000 0.0% $ 146,000 $ 146,000 $ - 0.0% All vehicles received N/A R FY13 New Dvlpmnts - UG Transformers 50,000 (66,100) - (66,100) 0.0% 50,000 (66,100) - 0.0% Over Budget; Revenue offset; EE1302 Bayard Plaza - 21,000 - 21,000 0.0% - 21,000 - 0.0% EE1310 YMCA - 22,000 20,916 1,084 95.1% - 22,000 20,916 95.1% EE1311 Super 8 Motel - 5,200 5,136 64 98.8% 5,200 5,136 98.8% EE1315 State Street Plaza - 5,800 - 5,800 0.0% - 5,800 0.0% EE1317 The Grand Apartments - 42,000 - 42,000 0.0% - 42,000 - 0.0% EE1318 M & L Ventures Warehouses - 12,500 - 12,500 0.0% - 12,500 - 0.0% EE1322 Grottos Pizza - 7,600 - 7,600 0.0% - 7,600 - 0.0% EE1313 R FY13 New Dvlpmnts - UG Conductors 350,000 37,800 4,882 32,918 12.9% 350,000 37,800 4,882 12.9% EE1301 Willow Tree Park - 9,800 13,077 (3,277) 133.4% - 9,800 13,077 133.4% EE1302 Bayard Plaza - 9,000 22,154 (13,154) 246.2% - 9,000 22,154 246.2% EE1311 Super 8 Motel - 1,000 666 334 66.6% - 1,000 666 66.6% EE1315 State Street Plaza - 2,900 1,408 1,492 48.6% - 2,900 1,408 48.6% EE1317 The Grand Apartments - 23,500 63,338 (39,838) 269.5% - 23,500 63,338 269.5% EE1318 M & L Ventures Warehouses - 15,000 1,747 13,253 11.6% - 15,000 1,747 11.6% EE1319 Proctor & Gamble - 30,000 19,225 10,775 64.1% - 30,000 19,225 64.1% EE1320 Generals Green Lights - 7,200 - 7,200 0.0% - 7,200 - 0.0% EE1322 Grottos Pizza - 37,800 - 37,800 0.0% - 37,800 - 0.0% EE1323 Dover High Lighting - 176,000 - 176,000 0.0% - 176,000 141,283 80.3% N/A R FY13 New Dvlpmnts - 1 Phase Meters 50,000 50,000 10,752 39,248 21.5% 50,000 50,000 10,752 21.5% EE1303 Frazier Sub Upgrade - - 3,500 (3,500) - - 3,500 0.0% EE1304 R FY13 Lighting Project & Rehab 100,000 100,000 - 100,000 0.0% 100,000 100,000 - 0.0% Route 13 LED Lighting EE1309 R Distribution Capacitors 125,000 125,000 - 125,000 0.0% 125,000 125,000 - 0.0% EE1307 Division Sub Fence 70,000 70,000 - 70,000 0.0% 70,000 70,000 - 0.0% EE1308 M Horsepond Substation Upgrade 761,800 761,800 - 761,800 0.0% 170,000 170,000 - 0.0% EE1305 M FY13 69kv Switch Rplmnt Program 135,000 135,000 - 135,000 0.0% 55,000 55,000 - 0.0% EE1306 R Trans Line Maint Program 75,000 75,000 - 75,000 0.0% 75,000 75,000 - 0.0% EE1312 M General Scott Switchgear 1,155,000 1,150,000 - 1,150,000 0.0% 50,000 50,000 - 0.0% N/A R FY13 Distribution Upgrades 400,000 12,000 - 12,000 0.0% 400,000 12,000 - 0.0% EE1314 Capitol Park Upgrade - 308,000 - 308,000 0.0% - 308,000 - 0.0% EE1321 Pleasanton Acres - 80,000 - 80,000 0.0% - 80,000 21,595 27.0% N/A R FY13 Distribution Feeder Rplcmts. 277,500 213,500 - 213,500 0.0% 277,500 213,500 - 0.0% EE1316 Wyoming Avenue Feeder Rplcmt - 64,000 - 64,000 0.0% - 64,000 3,443 5.4% EG1301 Units 1 Repair - Gasket leak - 65,000 - 65,000 0.0% - 65,000 - 0.0% New Project; Not budgeted; EG1304 R Units 1 & 2 Component Repairs 52,000 52,000 2,060 49,940 4.0% 52,000 52,000 2,060 4.0% EG1305 R Units 1 & 2 Cooling Tower Life Ext. 37,300 37,300 - 37,300 0.0% 37,300 37,300 - 0.0% EG1306 Turbine Level Window Modifications 85,000 85,000 - 85,000 0.0% 85,000 85,000 - 0.0% EG1307 Unit 3 Air Heater Expansion Joint 80,000 80,000 - 80,000 0.0% 80,000 80,000 - 0.0% EG1309 Unit 3 Stack Repairs 27,000 27,000 - 27,000 0.0% 27,000 27,000 - 0.0% EG1310 Units 1 & 2 Stack Repairs 75,000 75,000 - 75,000 0.0% 75,000 75,000 - 0.0% EG1311 Van Sant Capacity Increase 550,000 550,000 - 550,000 0.0% 550,000 550,000 - 0.0% EG1312 Unit 3 Generator Repairs 236,000 236,000 - 236,000 0.0% 236,000 236,000 - 0.0% EG1313 R Unit 3 Aux Sys Components 55,000 55,000 - 55,000 0.0% 55,000 55,000 - 0.0% $ 4,892,600 $ 4,952,600 $ 168,860 $ 4,728,740 3.4% $ 3,115,800 $ 3,180,800 $ 335,182 10.5% Grand Totals $ 7,927,300 $ 7,847,300 $ 1,014,856 $ 6,777,444 75.6% $ 3,970,000 $ 4,325,400 $ 417,525 9.7% Legend M = Multi-year project - a project with a specific schedule to occur over multiple years. B = Bonded Project R = Recurring project - a project that begins and ends each fiscal year and is re-budgeted to start over each fiscal year. S = State fully or partially reimbursed project

The Energy Authority, Inc. Monthly Management Committee Update – August 2012 September 27, 2012 Updated October 3, 2012 Prepared by: Jamie Mahne Vice President, Client Services 904.360.1374 jmahne@teainc.org

TABLE OF CONTENTS I. Executive Summary 1 II. Budget Report 12 III. Operations Management 14 IV. Appendix 29 i

I. Executive Summary A. Power Supply Summary: Overall Power Supply costs were $613,623 under budget due mainly to lower than estimated PJM prices. Dover’s budgeted cost for all power supply (capacity AND energy) was $97.90/MWh. The actual cost of all power supply (capacity AND energy) was $83.50. The cost of energy alone was $60.78/MWh, versus a budgeted energy cost of $77.77. The primary driver in the difference was the cost of unhedged energy. The city budgeted unhedged energy and PJM charges at $127/MWh. The actual cost of unhedged energy and PJM charges was $36/MWh – this decrease was due to lower PJM prices. Dover’s hedge purchases totaled 59,400MWh, which was 82% of the projected load and 76% of the actual load. Dover’s power purchases from hedge transactions totaled $3,922,292. Purchases from PJM (energy and fees) totaled $1,301,767, with DA Energy purchases totaling $882,316 and Balancing Spot Market Energy totaling a credit of $275,781. Dover’s total load was 77,973 MWh versus a forecasted load of 72,771 MWh. Dover’s planned energy purchase from the SunPark solar installation was 1,904MWh. Dover’s actual purchase from the SunPark installation was 1,893 MWh. 1

Supply Source Summary: Supply Variance: Budget Actual Variance Gross Load 72,771 77,973 (5,202) Wholesale Load 70,867 76,080 (5,213) Hedged Volume (MWh) 59,400 59,400 - Unhedged Volume (MWh) 11,467 16,680 (5,213) Dover SunPark Volume (MWh) 1,904 1,893 11 Renewable Energy Credits Volume 286 315 (29) Hedged Cost ($/MWh) $ 68 $ 66 0 Unhedged Energy Cost ($/MWh) $ 127 $ 36 $ 91 Solar Energy Cost ($/MWh) $ 83 $ 85 $ (2) Solar REC Cost ($/MW) $ 137 $ 137 $ - Energy Costs ($/MWh) $77.77 $60.78 $16.99 All-in Costs - Energy, Capacity and RECs ($/MWh) $97.90 $83.50 $14.40 2

B. Generation Summary: Dover generated 4,235MWh in the month. Net generation revenue was $929,695 vs. a budget of $1,014,867. This delta was mainly due to less than budgeted generation revenue and slightly higher than budgeted O&M costs. 3

Generation Breakdown: City of Dover's Wholesale Generation Net Generation Mwh 4,235.54 All In Generation Margin PJM Bill Energy $ 327,756.81 PJM Capacity $ 1,205,977.50 Black Start, Reactive Credit, DASR & EFORp $ 39,938.90 Gas Purchases $ (160,102.00) Oil Purchases $ - Transport / Cash Out $ (43,206.78) Gross Margin $ 1,370,364.43 Production Margin Generation Production Revenues (PJM) $ 327,756.81 Gas Purchases $ (160,102.00) Oil Purchases $ - Transport / Cash Out $ (43,206.78) Gross Production Margin $ 124,448.03 $/Mwh All In Generation Margin $ 323.54 $/Mwh Generation Production Margin $ 29.38 4

Fuel Purchases: Spot Gas Purchases Date Volume Price Total NJRES 8/2/2012 6,000. 3.53 (21,180.00) 8/2/2012 1,000. 3.35 (3,350.00) 8/3/2012 7,000. 3.27 (22,890.00) 8/3/2012 3,600. 3.40 (12,240.00) 8/7/2012 5,500. 3.35 (18,425.00) 8/7/2012 650. 3.38 (2,197.00) 8/9/2012 6,500. 3.30 (21,450.00) 8/13/2012 5,800. 3.10 (17,980.00) 8/13/2012 2,000. 3.20 (6,400.00) 8/30/2012 5,500. 2.94 (16,170.00) 8/31/2012 6,000. 2.97 (17,820.00) Total 49,550 $ 3.23 ($160,102.00) 5

Transportation and Imbalance: Eastern Shore Transport and Imbalance Charges Imbalance/dth Imbalance/dth Cost/dth Total Cost 2988 $3.44 ($10,278.72) ($10,278.72) Transport Volume/dth $/dth Total Cost Firm/IT 50,858 $0.144100 ($7,328.64) 52,538 $0.056300 ($2,957.89) 51,603 $0.427800 ($22,075.76) 935 $0.605100 ($565.77) ($32,928.06) Net ($43,206.78) 6

C. Emissions Summary: Emissions Allowance Summary through August 31, 2012 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 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) 8/31/12 2012 Emissions2 (1) (65) (72) TOTAL ALLOWANCES 9,065 66 113 On August 21, 2012, the U.S. District Court of Appeals (DCA) in Washington vacated EPA’s “Transport Rule” (aka Cross State Air Pollution Rule or CSAPR) which would have become effect on January 1, 2012. Additionally, DCA said EPA must continue administering the Clean Air Interstate Rule (CAIR), CSAPR’s predecessor, pending the issuance of a valid replacement rule. 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. 7

Market liquidity for CAIR allowances continues to be low, with few transactions occurring. The following table shows estimated values as of September 24, 2012, based on broker bids & offers: Mark-to-Market for CAIR Allowances (9/24/2012) Commodity $/Ton Tons Extended Value SO2 Allowances $ 0.75 9,065 $ 6,799 NOx Allowances - Seasonal $ 4.23 66 279 NOx Allowances - Annual $25.00 113 2,825 TOTAL $ 9,903 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 has 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 cumulative balance of unused RGGI allowances held by Dover were 92,712 tons as of the end of Calendar year 2011, as shown in the table below. During the months of June - August, 2012, Dover ran its generating units and did produce 13,994 tons of CO2 emissions, thus reducing the amount available in the allowance bank. CO2 Allowance Summary (8/31/2012) 1 2 3 4 5 6 7 8 CO2 Allowances Available Annual CO2 CO2 (Per Facility, Allocated CO2 Tons Cumulative CO2 Allowance Allowances Prior to Sale) CO2 Emitted - Vintage Sold YTD Allowances Historical 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 8

2012 0 27,058 925 27,983 ( 13,994) 13,578 106,290 2013 0 15,032 514 15,546 - 15,546 121,836 The table shows that the “Allocated CO2 Allowances” (column 5) are declining; after 2013, Dover will no longer receive allocations of RGGI allowances. Actual CO2 emissions (column 6) have varied from 5,796 tons in 2009 to 32,971 tons in 2010. The Cumulative Balance (column 8) – aka “Banked Allowances”) can be utilized for generation in future years. Once the banked allowances have been fully utilized, Dover will be required to purchase allowances through the periodic RGGI auctions or through secondary 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. RGGI auction and spot prices have remained in the $1.92 - $2.05/ton range. The most recent RGGI auction occurred on June 6th, 2012 and the auction cleared at $1.93/ton. Based on this auction, the value of Dover’s existing RGGI allowance bank (106,290 tons) is approximately $205,140 (excluding allocations for 2013 which have not yet been allocated). RGGI is currently conducting a program review pursuant to the original RGGI memorandum of understanding between participating states. As a result of these activities, coupled with declining allocations, TEA believes that there is a reasonable expectation that RGGI market prices could increase over the next few years. Dover could elect to sell all or a portion of its banked allowances now and re-acquire allowances at a later date; however TEA is currently of the opinion that Dover will be better off retaining its banked allowances for use during future compliance years. 9

D. Operations Management Summary: During the month of August, there were no reportable or lost time accidents or injuries. The facility has now gone 687 days without an OSHA recordable accident and 687 consecutive days without a lost time reportable accident. There were zero Environmental Notices of Violations issued. There were no Near Miss incidents. McKee Run Units 1and 2, were not dispatched by PJM nor were they self dispatched. Unit 3 was dispatched 7 times and VanSant Unit 11 was operated once. Also during the month, Units 3 and 11 successfully completed the PJM Capacity Test for the Summer Demonstration Period. Monthly Budget Variance - The actual expenses attributable to O&M of the two sites for the month of August were $440,669. The actual expenses are $27,270 or 6.60% over the approved budget of $413,399. The principal reason for the unfavorable variance is due to timing of Contractual Services and increased costs associated with additional run time on Unit 3 and Unit 11. 10

E. Risk Management Summary: Forward power prices in PJM have risen slightly since last month resulting in a higher blended cost. The current projected cost of service is below: Power Year Hedge Ratio Blended Cost ($/MWh) 2012-13 80% $61.47 2013-14 46% $51.02 2014-15 27% $47.00 2015-16 14% $46.29 11

II. Budget Report Variance Report: Budget Actual Variance Aug-12 Aug-12 Gross Load Forecast 72,771 77,973 (5,202) Power Supply Hedged Energy $4,038,702 $3,922,292 $116,410 PJM- Energy $1,458,848 $606,534 $852,314 PJM - Transmission and Fees $313,000 $695,232 ($382,232) Dover SUN Park Energy $161,802 $209,148 ($47,346) Dover SUN Park - RECs $39,133 $43,161 ($4,028) Management Fees $83,000 $83,000 $0 Capacity UCAP Obligated Purchased $1,029,954 $950,128 $79,826 Subtotal - Power Supply $7,124,439 $6,509,495 $614,943 Power Generation O&M & Fixed Fuel Plant O&M $413,399 $440,669 ($27,270) Subtotal Generation O&M $413,399 $440,669 ($27,270) Power Generation Production Margin Economic and reliability dispatch ($772,712) ($327,757) ($444,955) Fixed Fuel and Transport Charges $586,004 $203,309 $382,695 Subtotal Generation Production Margin ($186,708) ($124,448) ($62,260) Power Generation Non-Production Revenue Generation Capacity Credit ($1,205,978) ($1,205,978) ($1) Emissions Allowance Sales $0 $0 $0 Black Start & Reactive Power Revenue ($35,580) ($39,939) $4,359 Subtotal - Non-Production Revenue ($1,241,558) ($1,245,916) $4,358 SubTotal - All Generation ($1,014,867) ($929,695) ($85,172) Total - Utilities Cost $6,109,572 $5,579,800 $529,772 Unit Costs Total - Power Supply $97.90 $83.48 $14.42 Total - Power Generation ($13.95) ($11.92) ($2.02) Final Cost of Service to City of Dover Ratepayers $83.96 $71.56 $12.40 12

Variance Analysis: Power Supply  Dover consumed 5,202 MWh more than what was forecasted for the month.  PJM prices were lower than expected, but PJM’s overall costs with fees wee higher than forecast. The net result was a net power supply cost of $83.48/MWh, $14.42/MWh lower than budget.  For the month, the city realized a favorable variance of $614,943 for power supply vs. the monthly budget.  Dover Sun Park generated 11 MWh more than what was forecasted.  Dover Sun Park invoiced the City of Dover for 315 RECs. Generation  Power generation had an unfavorable budget variance of $85,172.  Plant O&M expenses had an unfavorable budget variance of $27,270 for the month, mainly due to timing of contracted services.  Generation Margin accounted for an unfavorable budget variance of $62,260 based on less generation production than was forecasted.  Dover sold 4,235 MWh of generation to PJM. 13

III. Operations Management NAES Corporation Dover, Delaware August 2012 Monthly Report 2012 NAES Scholarship Awards were presented to Kayla Carrow, Emily Carrow (daughters of Eric Carrow, Operator II) and Lori Berryhill, daughter of Lance Berryhill, Operations Supervisor. 14

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 15

1.0 Environmental, Health and Safety: During the month of August, there were no restricted work days or lost time accidents. The facility has now gone 1 year and 322 days (687 days total) through August 31, 2012 without an OSHA Recordable Accident or a Lost Time reportable accident. The July DMR was submitted for the McKee Run site with no NPDES issues identified. A NPDES exceedence for the enterococcus limit on Outfall 005 was experienced and the facility is currently investigating the root cause of this issue to determine the best method to resolve it. The exceedence will be reported on the August DMR that is submitted in September. The plant received no Notice of Violations (NOVs) during the month. Linearity testing was completed on Unit 3 CEMS during the recent unit operation as part of the CEMS certification and compliance requirements of the Title V Air Permit. Work continues on the IWDP (wastewater) permit with Kent County. The first design draft of the electrical/controls portion of the project has been submitted to the facility and is currently under review. The City of Dover approved funding of the project as a multi- year CIP beginning in 2012, with funds being carried into 2013. Environmental, Health, and Safety Statistics Month Fiscal Year to Date (August) (7/1/11-8/31/12) NOVs 0 0 Opacity Deviations 0 0 Environmental Deviations 1 6 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 4,120.25 8,625.250 Date last OSHA Recordable 10/14/10 Date last Lost Time Accident 10/14/10 Days since last OSHA recordable 687 Days since last Lost Time Accident 687 16

Emissions (NOx & SO2) All data thru 8/31/12 NOx Summary - Year (May-Sep) Tons Year Unit #1 Unit #2 Unit #3 Unit #11 TOTAL 2009 0.9 0.7 4.2 0.6 6.4 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 32.5 0.6 33.1 NOx Summary - Year (Jan-Dec) Tons Year Unit #1 Unit #2 Unit #3 Unit #11 TOTAL 2009 0.9 0.7 10.1 0.6 12.3 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 1.0 32.5 0.6 33.1 SO2 Summary - Year (Jan-Dec) Tons Year Unit #1 Unit #2 Unit #3 Unit #11 TOTAL 2009 0.05 0.05 0.1 0.2 0.4 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 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 1 29/30 0/2 earlier 2011 0 77#/48# 5/3 33/31– 3/1 0/0 - 0/0 44#/17# 2/2 2012 0 75/48 5/3 35/35 – 1/1 0/0 - 0/0 40/13 4/2 *Note – Emissions allowances are deducted according to oldest vintage first or unless otherwise directed. 17

SO2 Allowances Summary SO2 Allowances Available Total SO2 SO2 (Per Unit, Prior to Sale & Tons Emitted SO2 SO2 Allowance Allowances Reconciliation) – Allowances Vintage Sold - YTD U3 and U11 Balance Unit #3 Unit #11 YTD 2010 and earlier 0 4815 276 0 5089 2011 0 1850 138 1 1988* 2012 0 1850 138 1 1988* *Note – Emissions allowances are deducted according to oldest vintage first or unless otherwise directed. CO2 Allowances Summary* CO2 CO2 CO2 Allowances Available Total CO2 CO2 Allowance Allowances (Per Facility, Prior to Tons Emitted Allowance Vintage Sold YTD Sale) Balance McKee Run VanSant 2009 0 60,128 2,056 5,796 56,388 2010 0 48,102 1,645 32,971 16,776 2011 0 36,077 1,234 17,763 19,548 2012 0 27,058 925 13,994 13,578 2013 0 15,032 514 0 15,546 Note: All CO2 allowance values are provided by the RGGI CO2 Allowance Tracking System. 18

2.0 Financial Financial – Current Month Month – August Actual Budget Variance Personnel 236,618 239,870 3,252 Materials & Supplies 46,929 45,557 (1,372) Administrative Expenses 157,122 127,972 (29,150) Total $440,669 413,399 ($27,270) Financial – Fiscal Year to Date Number of Months – 2 Actual Budget Variance Personnel 434,151 483,473 49,322 Materials & Supplies 57,387 95,464 38,077 Administrative Expenses 584,915 613,417 28,502 Total 1,076,453 1,192,354 $115,901 2.1 Variance analysis: The City of Dover Finance Department has closed the books for the month of August. The expenses for August are $440,669 against a budgeted amount of $413,399 for an unfavorable variance of $27,270 or ≈ 6.60%. The variance was due to the following: PERSONNEL EXPENSES – Higher overtime expenses to support unit run time were offset by lower straight time labor and burden expenses yielding a slight favorable variance of $3,252. MATERIALS AND SUPPLIES EXPENSES- Higher Water Treatment Chemicals expenses due to increased unit operation time than budgeted were offset by lower Water - Sewer expenses which resulted in an unfavorable variance of $1,372 for the month. ADMINISTRATIVE EXPENSES – Higher Contractual Services, Environmental Expenses, Home Office Labor, and Boiler Systems Maintenance expenses than budgeted contributed to an unfavorable variance of $29,150. The budget is currently forecasted to finish this fiscal year at $5,871,999 expensed versus a budget of $5,914,900 thereby realizing a 99.27% expenditure rate. 19

3.0 Operations Unit Operations / Outages / Trips In the month of August, Unit 3 was dispatched seven times by PJM. Also during the month, Units 3 and 11 successfully completed the PJM Capacity Test for the Summer Demonstration Period. On August 3, Unit 3 completed the Capacity Test and on August 14, Unit 11 was self-dispatched to complete the Capacity Test. Month – August 2012 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 75.766 75.766 1.816 77.582 Starts # 0 0 7 7 1 8 Gross Generation MWh 0.0 0.0 4,566.539 4,566.539 69.034 4,635.573 Net Generation MWh 0.0 0.0 4,190.303 4,190.303 68.992 4,259.295 Total Auxiliaries MWh 21.811 21.811 613.718 657.340 .927 658.267 Auxiliaries purchased MWh 21.811 21.811 237.482 281.104 .885 281.989 Fuel Gas Used MMBTU 0.0 0.0 49,298.991 49,298.991 924.778 50,223.769 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 49,298.991 49,298.991 924.778 50,223.769 Net Heat Rate BTU/KWh 0.0 0.0 11,765 11,765 13,404 12,845 Unit Trips # 0 0 0 0 0 0 Capacity Factor % 0.0 0.0 5.52 4.14 0.24 3.27 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 0.0 0.0 0.0 0.0 0.0 0.0 Maintenance Outage Hours 0.0 0.0 0.0 0.0 0.0 0.0 Hours Forced Outage Hours Hours 0.0 0.0 0.0 0.0 0.0 0.0 Reserve Shutdown Hours 744.000 744.000 668.234 2,156.234 742.184 2,898.418 Hours HW Boiler Gas Usage MMBTU 0 0 Pilot Gas Usage MMBTU 0 0 0 0 # Note: Does not include HWB or Pilot Gas. Fuel usage numbers are taken from fuel flow instruments. 20

2011-2012 Fiscal Year-to-Date ( August ) 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 92.782 71.970 231.381 396.133 22.066 418.199 Starts # 2 2 20 24 4 28 Gross Generation MWh 643.317 582.202 15,827.652 17,053.171 714.818 17,767.989 Net Generation MWh 604.005 541.673 14,600.058 15,745.736 714.287 16,460.023 Total Auxiliaries MWh 104.456 105.673 1,774.052 1,984.181 2.244 1,986.425 Auxiliaries purchased MWh 65.144 65.144 546.458 676.746 1.713 678.459 Fuel Gas Used MMBTU 9,072.980 8,108.898 167,031.015 184,212.893 8,429.434 192,642.327 Fuel Oil Used MMBTU 0.0 0.0 0.0 0.0 112.567 112.567 Fuel Oil Used Gallons 0.0 0.0 0.0 0.0 5,806 5,806 Total Fuel MMBTU 9,072.980 8,108.898 167,031.015 184,212.893 8,542.001 192,754.894 Net Heat Rate BTU/KWh 15,021 14,970 11,537 13,843 12,604 13,224 Unit Trips # 0 0 0 0 0 0 Capacity Factor % 0.54 0.49 2.18 1.76 0.28 1.43 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 0.0 0.0 0.0 0.0 0.0 0.0 Maintenance Outage Hours 0.0 0.0 0.0 0.0 0.0 0.0 Hours Forced Outage Hours Hours 0.0 0.0 0.0 0.0 0.0 0.0 Reserve Shutdown Hours 1,395.218 1,416.030 1,256.619 4,067.867 1,465.934 5,533.801 Hours HW Boiler Gas Usage MMBTU 0 0 Pilot Gas Usage MMBTU 784 784 1,568 1,568 Fuel Oil Inventory Monthly Monthly Fuel Monthly FY 12-13 Fuel FY 12-13 Inventory Inventory Purchases Inventory Inventory Purchases Inventory (Start) (End) (Month) (Change) (Start) (YTD) (Change) McKee Run (#2 Fuel Oil) 454,725 455,169 0 444 454,725 0 444 VanSant 146,639 146,301 0 (338) 152,150 0 (5,849) (#2 Fuel Oil) Note: As measured by tank level instruments. Tank levels may change due to oil temperature. 21

VanSant Lifetime through 8/31//12 Actual Starts Factored Starts Fired Hours VanSant 1303 2230.45 4215.86 Since HGP - Dec 2004 229 562.75 832.28 Capacity Testing – FY 2012-2013 Summer 2012 (June 1- Aug 31) Winter 2012-2013 (Dec 1- Mar 1) Unit Rated Net Reported Net Unit Rated Net Reported Net Capability (MW) Capability (MW) Capability (MW) Capability (MW) 1 17 17.0 1 17 * 2 17 17.3 2 17 * 3 102 102.7 3 102 * VanSant 39 39.0 11 39 * Total 175 176.0 Total 175 175 Note: * Denotes Unit is qualified for the PJM Winter Demonstration Period Exemption Program Team Report: The teams are continuing to train to complete and review their EDQP programs. The operators use the program to train for a position desired and also as a review of programs as well reinforce current knowledge. The General Physics and the PJM on line courses are used in the training as well. The Plant Operations staff participates in the OES-NA training that helps prepare them for the PJM Certified System Operator exam and provides some of the required continuing education hours (CEHs) necessary to maintain PJM Certified System Operator qualifications. During the month of August, the Operations staff successfully completed the PJM Capacity Testing on Units 3 and 11 for the Summer Demonstration Period. 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 Flex Team in both Operations and Maintenance areas to help in maintaining the plant. 22

4.0 Maintenance During the month of August, the Plant Maintenance staff continued addressing the backlog of work orders and completing outage activities. There were sixty-three work orders issued with forty-one 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 August - 2012 Outstanding From Outstanding Previous Issued This Completed at the end of Priority # Month Month This Month the month 1 8 11 9 10 2 35 13 11 37 3 46 8 4 50 4 5 0 2 3 5 8 5 2 11 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 49 26 13 62 Totals 151 63 41 173 Note: PMs are included in the priority totals Notable activities during the month include: 1) The Unit 3 Control Room Expansion Project is now complete. The expanded area in the control room is now home to the PJM computer, Metering computer and work station computers as well as other necessary equipment and phone systems that will provide improved logistics to the Operations staff. 2) The IC/E Staff troubleshot an issue with the Main Steam Control Valve on Unit 3 during a startup. The operations staff would start to roll the unit and as the turbine built up speed, the turbine will take off resulting in an over-speed trip condition. The IC&E staff found that there was a bad servo on the main control valve. They changed out the servo and the unit was able to come up to proper speed at the proper rate thereby ensuring safe and efficient operation of the unit and avoided a possible forced outage on the unit.. 23

3) The Maintenance Staff is near completion of the lean-to are attached to #1 Warehouse. Enclosing the area will ensure equipment and materials remain dry and out of the weather. Housed within the enclosure will be the spill trailer, empty 55 gallon drums and spill materials. This will be helpful in the event of a spill in that these materials will be more easily accessible and aid in response time to containment or cleanup up of a spill. 4) The Maintenance Staff relocated the nitrogen station for Unit 3 from the 5th floor to the ground floor. The relocation of the N2 Station provided easier access to bottle storage. 24

5.0 Capital Improvement Projects (CIP) Project Description Update Number Units 1 & 2 Cooling Progress: The FY2013 work scope package being developed EG1102 Tower Repairs Schedule: Work scheduled to be completed in the 4th quarter Progress: Work scheduled for the Spring 2013 outage. Bid Unit #3 Boiler document being developed. Completion at 5%. EG1202 Systems Schedule: Bids to be obtained in 2nd quarter of 2012 and work to be completed in the spring 2013 outage.. Progress: The FY2013 work scope package being developed. Unit 3 Auxiliary EG1203 Schedule: Work scheduled to be complete in the 4th quarter. System Components Progress: Long lead material requirements being developed for bid. Unit 3 Turbine EG1212 Schedule: Long lead items were identified in the 2nd quarter and Repairs will be purchased in the 3rd and 4th quarters. Progress: The FY2013 work scope package being developed Units 1 & 2 EG1304 Schedule: Work to be completed during the fall outage Components Repairs Turbine Level Progress: The FY2013 work scope package being developed EG1306 Window Schedule: Work to be completed during the 2ndquarter of 2013. modification Progress: Material has been purchased. Installation bids are being Unit 3 Air Heater EG1112 solicited Expansion Joint Schedule: The work is schedule to be complete in the 3rd quarter. Progress: Scope of work has changed since this project was proposed as the stack inspection performed in spring of 2012 determined stack lining in worse condition than expected. Activities in 2013 will be to develop repair scope and obtain bids for the work. EG1309 Unit 3 Stack Repairs This should be completed in the 2nd quarter. Schedule: The scoping of work should be completed in the 2nd quarter with bids and revised installation costs identified. Actual repair work will be scheduled for 2014 Units 1&2 Stack Progress: The FY2013 work scope package being developed EG1310 Repairs Schedule: Work to be completed during the spring outage Progress: Valuation of the benefits of various technologies is underway. Final decision on moving forward with the project has VanSant Capacity still not been made. EG1311 Increase Schedule: Installation scheduled for the 4th quarter but is dependent on favorable decision to move forward. At present time, this cannot expect to be completed until late 2013. 25

Progress: Parts identification has started and installation bid package Unit 3 Generator EG1312 being developed. Expect to issue bids in the 2nd quarter. Repairs Schedule: Installation work to be completed in the 4th quarter Progress: Mechanical design is complete and electrical design is MR Industrial Waste EG1214 approximately 80% complete and under review by plant staff. water System Schedule: Installation work planned for the 2nd quarter. 26

6.0 General Plant Information During the month of August, the facility made two offers for IC&E Technician and an Operator position both offers were accepted. The two candidates will start on September 17th based on clearing a physical and screening process. The Plant received the 90-day notification of an RFirst NERC audit to be held in October, 2012 for the McKee Run and VanSant facilities. The audit will only be performed on VanSant since RFirst has determined that McKee Run is not tied to the Bulk Electric System. The NAES NERC group is assisting with the preparation of the documents and submissions required through the auditing process. Next milestone is on September 5 when RSAW submittals and evidence is due for those standards being audited. Training: Topics discussed during the monthly safety committee meeting were reviewed by the entire staff. The safety topic was on “Hurry Up Can Hurt You” which describes that each person needs to take their time doing job and you can’t rush safety. Calendar of Events Date DRBC Study Due September 15, 2012 NOx Ozone Season Ends September 30, 2012 Units 1, 2, 3 and 11 Fall Outage October 1, 2012 – December 3, 2012 Two Year Accident Free October 14, 2012 Winter Capacity Period December 1, 2012 to February 28, 2013 McKee Run and VanSant Title V Annual Certification Due February 1, 2013 Annual VanSant Black Start Test TBD EIA-860 Report February 28, 2013 EIA-923 Report February 28, 2013 NOx Emissions Reconciliation Due March 1, 2013 SO2 Emissions Reconciliation Due March 1, 2013 SARA III Report March 1, 2013 NPDES Permit Renewal Due March 4, 2013 Units 1, 2, and 3 Spring Outage March , 2013 – June 1, 2013 Unit 11 Spring Outage March , 2013 – June 1, 2013 Air Emission Inventory June 30, 2012 NOx Ozone Season Starts May 1, 2013 PJM Summer Capacity Test Period June 1, 2013 – August 31, 2013 Toxic Release Inventory (TRI) Annual Report July 1, 2013 McKee Run and VanSant Title V Semi-Annual Certification Due August 1, 2013 27

7.0 Summary of NAES Performance to Date Plant Performance FY 2012-2013 Measure Month Year to Date YTD FY Maximum Incentive Incentive Commercial 0% 0% $92,128 $92,128 Unavailability (CU) Safety 0 0 $17,273 $17,273 Environmental 0 0 $17,273 $17,273 Capacity Tests Summer Winter Summer Winter Completed Unit 1 No Yes* Yes Yes* $3,455* $3,455 Unit 2 No Yes* Yes Yes* $3,455* $3,455 Unit 3 Yes Yes* Yes Yes* $20,520* $20,520 Unit 11 Yes Yes* Yes Yes* $6,840* $6,840 Total YTD 100.00% Total YTD Incentive $161,224 $161,224 Incentive % Note: Units 1 and 2 PJM Summer Capacity Tests have been successfully completed and would be entered into the PJM Winter Capacity Test Exemption Program*. The YTD Incentive calculation reflects this information. 28

IV. Appendix – PJM Invoice Breakdown Gen Load Grand Total Auction Revenue Rights $ (1,117.24) $ (1,117.24) Balancing Operating Reserve $ (27,799.88) $ 35,617.77 $ 7,817.89 Balancing Spot Market Energy $ (6,730.04) $ (275,781.94) $ (282,511.98) Balancing Transmission Congestion $ (1,888.45) $ (8,335.97) $ (10,224.42) Balancing Transmission Losses $ (502.85) $ (2,508.95) $ (3,011.80) Black Start Service $ (6,905.58) $ 1,850.42 $ (5,055.16) Capacity Resource Deficiency $ (246.24) $ (246.24) Capacity Transfer Rights $ (33,318.18) $ (33,318.18) Day-ahead Operating Reserve $ (20,366.24) $ 8,574.29 $ (11,791.95) Day-ahead Scheduling Reserve $ (3,565.74) $ 2,639.98 $ (925.76) Day-ahead Spot Market Energy $ (240,057.22) $ 882,316.25 $ 642,259.03 Day-ahead Transmission Congestion $ (15,877.11) $ 72,268.49 $ 56,391.38 Day-ahead Transmission Losses $ (14,535.02) $ 162,183.93 $ 147,648.91 Expansion Cost Recovery $ 413.85 $ 413.85 FERC Annual Recovery $ 5,374.26 $ 5,374.26 Generation Deactivation Refund $ (744.31) $ (744.31) Inadvertent Interchange $ 295.55 $ 295.55 Load Reconciliation for Balancing Operating Reserve $ (6.08) $ (6.08) Load Reconciliation for FERC Annual Recovery $ (0.63) $ (0.63) Load Reconciliation for Inadvertent Interchange $ (1.43) $ (1.43) Load Reconciliation for Market Monitoring Unit (MMU) Funding $ (0.05) $ (0.05) Load Reconciliation for North American Electric Reliability Corporation (NERC) $ (0.10) $ (0.10) Load Reconciliation for PJM Scheduling, System Control and Dispatch Service $ (1.89) $ (1.89) Load Reconciliation for PJM Scheduling, System Control and Dispatch Service Refund $ 0.08 $ 0.08 Load Reconciliation for Reactive Services $ 67.93 $ 67.93 Load Reconciliation for Regulation and Frequency Response Service $ (7.38) $ (7.38) Load Reconciliation for Reliability First Corporation (RFC) $ (0.12) $ (0.12) Load Reconciliation for Schedule 9-6 - Advanced Second Control Center $ (0.24) $ (0.24) Load Reconciliation for Spot Market Energy $ (1,044.04) $ (1,044.04) Load Reconciliation for Synchronized Reserve $ (2.65) $ (2.65) Load Reconciliation for Transmission Congestion $ (182.59) $ (182.59) Load Reconciliation for Transmission Losses $ (38.44) $ (38.44) Load Reconciliation for Transmission Owner Scheduling, System Control and Dispatch Service $ (0.68) $ (0.68) Locational Reliability $ 984,728.95 $ 984,728.95 Market Monitoring Unit (MMU) Funding $ 373.15 $ 373.15 29

Meter Error Correction $ (3,808.54) $ (3,808.54) Network Integration Transmission Service $ 295,467.82 $ 295,467.82 Non-Firm Point-to-Point Transmission Service $ (684.83) $ (684.83) North American Electric Reliability Corporation (NERC) $ 842.40 $ 842.40 Organization of PJM States, Inc. (OPSI) Funding $ 53.82 $ 53.82 PJM Scheduling, System Control and Dispatch Service - Advanced Second Control Center $ 2,146.36 $ 2,146.36 PJM Scheduling, System Control and Dispatch Service - Capacity Resource/Obligation Mgmt. $ 948.91 $ 948.91 PJM Scheduling, System Control and Dispatch Service - Control Area Administration $ 13,197.72 $ 13,197.72 PJM Scheduling, System Control and Dispatch Service - Market Support $ 3,122.88 $ 3,122.88 PJM Scheduling, System Control and Dispatch Service - Market Support Offset $ (402.96) $ (402.96) PJM Scheduling, System Control and Dispatch Service - Regulation Market Administration $ 195.87 $ 195.87 PJM Scheduling, System Control and Dispatch Service Refund - Capacity Resource/Obligation Mgmt. $ (36.27) $ (36.27) PJM Scheduling, System Control and Dispatch Service Refund - Control Area Administration $ (584.99) $ (584.99) PJM Scheduling, System Control and Dispatch Service Refund - Market Support $ (141.35) $ (141.35) PJM Scheduling, System Control and Dispatch Service Refund - Regulation Market Administration $ (9.99) $ (9.99) PJM Settlement, Inc. $ 402.96 $ 402.96 Reactive Services $ 73,348.41 $ 73,348.41 Reactive Supply and Voltage Control from Generation and Other Sources Service $ (29,467.58) $ 32,182.67 $ 2,715.09 Regulation and Frequency Response Service $ 19,118.69 $ 19,118.69 Reliability First Corporation (RFC) $ 1,053.03 $ 1,053.03 RPM Auction $ (1,205,977.50) $ (1,205,977.50) Synchronized Reserve $ 4,220.66 $ 4,220.66 Transmission Enhancement $ 18,945.11 $ 18,945.11 Transmission Losses $ (42,117.72) $ (42,117.72) Transmission Owner Scheduling, System Control and Dispatch Service $ 5,795.46 $ 5,795.46 Day-ahead Operating Reserve for Load Response $ 1.14 $ 1.14 Balancing Operating Reserve for Load Response $ (28.18) $ (28.18) Load Reconciliation for Organization of PJM States, Inc. (OPSI) Funding $ (0.01) $ (0.01) Load Reconciliation for Day-ahead Scheduling Reserve $ (27.95) $ (27.95) Peak-Hour Period Availability $ (6,738.06) $ (6,738.06) Day-Ahead Load Response Charge Allocation $ 1,169.38 $ 1,169.38 Real-Time Load Response Charge Allocation $ 1,742.14 $ 1,742.14 Incremental Capacity Transfer Rights $ (1,036.95) $ (1,036.95) Michigan - Ontario Interface Phase Angle Regulators $ 190.82 $ 190.82 Grand Total $ (1,573,673.21) $ 2,251,894.20 $ 678,220.99 30