Attachment

UTILITY COMMITTEE AGENDA November 14, 2011 - 5:00 P.M. - Council Chambers - City Hall - City of Dover 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 Street Name Change - Slaughter Street (Between Loockerman Street and North Street) 2. TEA/NAES Monthly Report (August) 3. Updates A. Green Energy Funding and Programming B. National Pollution Discharge Elimination System (NPDES) Municipal Separate Storm Sewer Systems (MS4) Permit 4. Adjournment by 5:25 P.M. /tm S:\AGENDAS & MINUTES\Committee-Agendas\2011\11-14-2011 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.

City of Dover REQUEST FOR STREET NAME CHANGE Utility Committee of City of Council Meeting of November 14, 2011 Recommendation from the Planning Commission Meeting of October 17, 2011 Petitioner: New Jerusalem Baptist Church C/o Reverend Clifton Holmes 25 Slaughter Street Dover, DE 19904 Location: One block segment of Slaughter Street which runs in a north-south direction between West North Street and West Loockerman Street just east of the railroad corridor Purpose: Request to change the street name of this street segment from Slaughter Street to Jerusalem Way. Request was filed in accordance with the Dover Code of Ordinances, Chapter 98, Article II, Section 98-45 Street name change Procedure Proposed Street Name: Jerusalem Way File Number: MI-11-11 Recommendation of the Planning Commission: This Request for a Street Name Change (Slaughter Street to Jerusalem Way) was considered by the Planning Commission at their meeting on October 17, 2011. Six members of the Planning Commission were present with three members absent. Information on the Request was presented to the Planning Commission by Planning Staff and by the petitioner, Reverend Clifton Homes on behalf of New Jerusalem Baptist Church. According to the street name change procedures, a public hearing was not required. The Planning Commission was also provided the attached Report and Comments from the Development Advisory Committee (D.A.C.). See Attached Report with Comments from the Department of Public Utilities, DelDOT, and Kent County Department of Planning Services – Division of Geographic Information Systems: 911 Addressing. The Planning Commission unanimously recommended in favor of the requested street name change from Slaughter Street to Jerusalem Way (for the segment of Slaughter Street running between West North Street and West Loockerman Street), with six (6) members voting in favor of the street name change and three (3) members absent. An excerpt of the draft minutes of the Planning Commission discussion on the application is attached. P. O. Box 475 Dover, DE 19903 Community Excellence Through Quality Service

Excerpt of DRAFT Meeting Minutes for Planning Commission Meeting of October 17, 2011: MI-11-11 Request for Street Name Change: Slaughter Street to Jerusalem Way – Review for Recommendation to City Council of a Request for a Street Name Change for the one block segment of Slaughter Street which runs in a north-south direction between West North Street and West Loockerman Street just east of the railroad corridor. The new street name proposed is Jerusalem Way. The request was filed in accordance with Dover Code of Ordinances, Chapter 98, Article II, Section 98-45 Street name change procedure which also references Appendix A: Land Subdivision Regulations, Article VI, Section A. Streets. The name change procedure requires review and comments by the Development Advisory Committee (DAC) and review by the Planning Commission prior to public hearing and consideration by the City Council. Representative: Reverend Clifton Holmes, New Jerusalem Baptist Church. Mrs. Melson-Williams stated that this is a petition that was received by the City. The City of Dover Code of Ordinances in Chapter 98 has a specific procedure for street name changes in how that happens. The petition was filed and the review process begins with the Development Advisory Committee. Comments were provided from the Development Advisory Committee that she will highlight and then it moves onto the Planning Commission for review. You are to consider the request this evening. There is no hearing that is required and your action this evening is a recommendation regarding the name change request along with your reasons for doing so. Mrs. Melson-Williams further stated that the background report talks about the short segment of Slaughter Street, specifically the segment of Slaughter Street that is one block in length and runs in a north/south direction between what is West North Street and the terminus of Loockerman Street near the train station. This request is to change that street segment from Slaughter Street to Jerusalem Way. Mrs. Melson-Williams further described some history about the area; it appears that the name Slaughter Street for that street segment was identified in the late 1800’s. One of the property owners in the vicinity and of this street segment was a T. Slaughter. This name appears on some of the historical maps marking ownership in the area. There are a number of other names that actually were used including Negro Street for this street. Basically, the street does not come into existence until around 1885. Mrs. Melson-Williams further stated that today, for the segment of Slaughter Street on the west side is the Duncan Center building. The Duncan Center is addressed off of West Loockerman Street; however, access to the parking facilities for that building comes off of Slaughter Street. On the east side of Slaughter Street, only one building remains which is the church building that is currently occupied by the New Jerusalem Baptist Church. In requesting the street name change, there are some provisions within the Land Subdivision Regulations that go to the naming conventions for streets and the proposed street name “Jerusalem Way” follows these conventions.

Mrs. Melson-Williams further stated that the Planning Staff is recommending approval of the street name change and our comments include that there will, if successful, have to be notification of that street name change as well as installation of new street signage in the area. The other reporting DAC agencies include the Public Utilities Department that comments on the need for updated street signage should the change occur. There were no specific comments that DelDOT had on the change. The Kent County 911 Addressing Center notes that they have no objection to the proposed street name of “Jerusalem Way.” There were no comments from any Planning Commission members at this time. Reverend Holmes stated that he would appreciate your consideration this evening for this request. In all due respect to Mr. Slaughter who this street was named after, we have had a problem with some confusion with the other part of Slaughter Street with people stopping all the time to ask for directions as well as confusion with mail delivery. This will help with the confusion and is the reason for the request of the name change. He also noted that several members of the church’s Board of Trustees were also present in the audience in support of the request. Mr. Hemmig stated that there is no public hearing required for this application. Colonel Welsh moved to forward a recommendation of approval to City Council for MI-11-11 Request for Street Name Change: Slaughter Street to Jerusalem Way, seconded by Mr. Baldwin and the motion was unanimously carried 6-0 with Mr. Tolbert, Mr. Nichols and Mr. Friedman absent.

CITY OF DOVER DEVELOPMENT ADVISORY COMMITTEE APPLICATION REVIEW COMMENTARY D.A.C MEETING DATE: October 5, 2011 ===================================================================== APPLICATION: Request for Street Name Change: Slaughter Street to Jerusalem Way FILE#: MI-11-11 REVIEWING AGENCY: City of Dover Planning CONTACT PERSON: Dawn E. Melson-Williams, AICP PHONE#: 736-7196 ===================================================================== This request is submitted for Planning Commission review of a Request for a Street Name Change for the one block segment of Slaughter Street which runs in a north-south direction between West North Street and West Loockerman Street just east of the railroad corridor. The new street name proposed is Jerusalem Way. The request was filed in accordance with Dover Code of Ordinances, Chapter 98, Article II, Section 98-45 Street name change procedure which also references Appendix A: Land Subdivision Regulations, Article VI, Section A. Streets. The name change procedure requires review and comments by the Development Advisory Committee (DAC) and review by the Planning Commission prior to review by the Utility Committee of City Council and then public hearing and consideration by the City Council. History of Area This area of Dover is part of the downtown grid network of streets. The 1868 Beers Map of Dover shows limited development in this area with only the railroad corridor and a large block bounded by Loockerman Street to the north, Queen Street on the east, and North Street on the south. Within the block, there are two buildings fronting on Loockerman Street, a cemetery adjacent to Queen Street, and an African Church building. The western portion of the block is owned by T. Slaughter. The 1885 Bird’s Eye View of Dover by Bailey shows a north-south street bisecting the block by 1885 with more extensive building development (residences, a school) fronting the street. Review of the Sanborn Fire Insurance Map series 1885-1944, shows the street names of Negro Street and Slaughter Street for this street segment. It appears that this street segment was named for the adjacent property owner, T. Slaughter. It is also noted that there is another street segment also named Slaughter Street (not subject to this request). This street is located west of the railroad corridor and runs east-west with street connections of Clarence Street and Minima Street to West North Street. This “Slaughter Street” is depicted on an 1887 Map of Dover by W.B. Roe. Existing Conditions and Use: For this one block segment of Slaughter Street, the west side adjacent to the railroad corridor is developed with a multi-story office building and parking lot known as the Duncan Center and

MI-11-11 Request for Street Name Change: Slaughter Street to Jerusalem Way DAC Report of October 5, 2011 Page 2 addressed as 500 West Loockerman Street. The site access to the parking lot is from Slaughter Street. On the east side of the block the only remaining building fronting on the subject street is a church building (constructed circa 1871) currently occupied by the New Jerusalem Baptist Church. The church is addressed as 25 Slaughter Street. This street right-of-way is owned and maintained by the City of Dover. Request for Street Name Change The proposed Street Name requested is Jerusalem Way for this segment of Slaughter Street. Within the Land Subdivision Regulations Article VI, Section A. Streets, guidelines for the naming of streets are provided. Article VI. Section A. Streets. 16. Street names shall be selected so as not to duplicate, or be confused with, the names of existing streets. Street names shall be subject to the approval of the commission. All new streets shall be named in the following manner: TABLE INSET: Short General Direction Long (under 1,000 ') North and south Streets Places East and west Avenues Courts Diagonal Roads Ways Curving Drives Lanes, Circles Arterial streets shall be named Boulevards THE SUBJECT PROPOSAL HAS BEEN REVIEWED FOR CODE COMPLIANCE, PLAN CONFORMITY AND COMPLETENESS IN ACCORDANCE WITH THIS AGENCY'S AUTHORITY AND AREA OF EXPERTISE. RECOMMENDATIONS and ADVISORY COMMENTS: 1. Planning Staff recommends approval of the street name Jerusalem Way as following the naming conventions for a short one block segment of street. 2. As part of the Development Advisory Committee process, a series of City, County, and State agencies were notified of the street name change request. Any comments received regarding the request are attached to this report. 3. Upon approval of the street name change, notification of appropriate City, County, and State agencies will be completed by the City of Dover. 4. Upon approval of the street name, the installation of updated street name blades on the street will be completed by the City of Dover.

CITY OF DOVER DEVELOPMENT ADVISORY COMMITTEE APPLICATION REVIEW COMMENTARY STAFF D.A.C. MEETING DATE: SEPTEMBER 28, 2011 APPLICATION: REQUEST FOR STREET NAME CHANGE: SLAUGHTER STREET TO JERUSALEM WAY FILE #: MI-11-11 REVIEWING AGENCY: City of Dover Public Utilities Department CONTACT PERSON: Steve Enss - Electric Sharon Duca, P.E. - Water, Wastewater, Stormwater CONTACT PHONE #: 302-736-7070 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 1. Our office has no objections to the proposed name change. STORMWATER / GENERAL 1. None. RECOMMENDATIONS SUGGESTED AS CONDITIONS OF APPROVAL TO MEET CODE OBJECTIVES ELECTRIC / WATER / WASTEWATER / STORMWATER / GENERAL 1. None ADVISORY COMMENTS TO THE APPLICANT ELECTRIC / WATER / WASTEWATER / STORMWATER 1. None. GENERAL 1. The new street signs required for this location will be purchased and installed by the Public Services Department. 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 DEVELOPMENT ADVISORY COMMITTEE D E APPLICATION REVIEW COMMENTARY L D D.A.C. MEETING DATE: October 5, 2011 O ========================================================= T APPLICATION: Request for Street Name Change: Slaughter Street to Jerusalem Way FILE#: MI-11-11 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. 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.

Kent County Department of Planning Services Division of Geographic Information Systems SARAH E. KEIFER, AICP Phone: 302/744-2420 Director of Planning Services FAX: 302/736-2128 Email: sabrina.fite@co.kent.de.us SABRINA FITE GIS Specialist TO: - Dawn E. Melson-Williams, AICP The City of Dover FROM: Sabrina Fite 911 Addressing DATE: September 30, 2011 PIN #: OWNER: REF: MI-11-11 Request for Street Name Change: Slaughter Street to Jerusalem Way - Kent County has no objections regarding the proposed street name JERUSALEM WAY

Slaughter Street - Jerusalem Way Proposed Street Name Change 127 130 131 133 136 585 141 For 135 est St 321 403 407 329 409 2 415 erman St k 600 Looc 326 212 412 S Qu 516 416 St een 371 gh Slau 25 t tree 500 ter S 645 St N orth W 450 520 350 0 75 150 300 Feet ¯ Date Printed: October 5, 2011 Legend File: m:\gis_data\projects\tech_mxds \street_name_change Portion Proposed to be Renamed Jerusalem Way Department: Public Services GIS Dover Parcels City of Dover, Delaware

The Energy Authority, Inc. Monthly Management Committee Update – August 2011 Revised October 25, 2011 Prepared by: Jamie Mahne Member Services Manager 904.360.1374 jmahne@teainc.org

TABLE OF CONTENTS I. Executive Summary ................................................................................................................ 1 II. Budget Report ......................................................................................................................... 4 III. Energy Management ............................................................................................................ 7 IV. Operations Management .................................................................................................... 16 i

I. Executive Summary Power Supply: Power Supply Costs FY2011-12 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Jul-11 Aug-11 Sep-11 Oct-11 Nov- Dec-11 Jan-12 Feb-12 Mar- Apr-12 May- Jun-12 11 12 12 Budget Actual Powers Supply costs were $489,212 under budget due to decreased PJM load (4,338 MWh less than forecast). This variance is inclusive of 1,012MWh of solar power generated by the Dover Sun Park in August. Average cost/MWh on the supply side was $90.17 compared to a budgeted cost of $91.45. Mild temperatures in PJM along with Hurricane Irene’s impact resulted in lower load and lower energy prices. Dover’s hedge purchases totaled 61,280 MWh, which was 80% of the projected load. Versus actual load, this hedged percentage totaled 85% of Dover’s needs for the month. Dover’s power purchases from hedge transactions totaled $4,435,151. Purchases from PJM totaled $1,243,031 (all in), with DA Energy purchases totaling $747,504 and Balancing Spot Market Energy totaling $118,708. 1

Generation Summary Generation Revenue FY2011-12 $2,000,000 $1,500,000 $1,000,000 $500,000 $- Jul-11 Aug-11Sep-11 Oct-11 Nov- Dec-11 Jan-12 Feb-12 Mar- Apr-12 May- Jun-12 11 12 12 Budget Actual Net generation for the month credited by PJM was 2,825MWh. The budget did not expect any generation. Net generation revenue totaled $145,859 vs. a budget of $260,656. Dover’s units were dispatched for a total of 9 starts and ran for more than 54 hours this month. Operations Management Summary During the month of August, there were no restricted work days or lost time accidents. The facility has now gone 321 days without an OSHA recordable accident or a Lost Time reportable accident. The plant received no Notice of Violations (NOVs). The actual expenses for August are $392,825 against a budgeted amount of $432,020 for a favorable variance of $39,195 or ≈ 9.07%. The variance was due to the following: PERSONNEL EXPENSES – Favorable variance of $60,800. MATERIALS AND SUPPLIES EXPENSES- The account with any appreciable variance was the Water and Sewer account which was higher than budgeted due to supporting unit operations for an unfavorable variance of $28,086. ADMINISTRATIVE EXPENSES – Lower than budgeted expenses in the areas of Electric, Environmental Expenses, DCS Control Systems / Maintenance and Combustion Turbine Maintenance contributed to a favorable variance of $6,481. The current budget forecast for the current fiscal year is $5,917,031 expensed versus an approved budget of $5,964,818 thereby realizing a 99.20%.expense rate. 2

In the month of August, Units 3 and 11 were dispatched three times and once respectively by PJM. During the month, Unit 11 also successfully completed the PJM Capacity Test for the Summer Demonstration Period. Unit 11 was operated for the City of Dover during Hurricane Irene to supply cranking power to McKee Run Unit 3 which was on hot standby, in the event the City of Dover was disconnected from the Bulk Electric System Risk Management Summary Similar to July, PJM power prices remained strong through the month of August, against falling natural gas prices. Subsequently, the PJM heat rate is trading near its highs. Natural gas storage remains in the low middle of the 5-year range. The current projected cost of service is below: Power Year Hedge Ratio Blended Cost ($/MWh) 2011-12 83% $70.57 2012-13 74% $67.84 2013-14 46% $61.15 2014-15 24% $60.69 2015-16 3% $64.81 3

II. Budget Report Variance Report: Budget Actual Variance Aug-11 Aug-11 Load Forecast (Net of Solar Output) 76,807 72,469 4,338 Power Supply Power Supply (inc. Mgt Fees) $6,327,968 $5,818,037 $509,931 Capacity UCAP Obligated Purchased $695,864 $716,582 ($20,718) Total - Power Supply $7,023,831 $6,534,619 $489,212 Power Generation O&M & Fixed Fuel Plant O&M $466,179 $392,825 $73,354 Fixed Fuel and Transport Charges $0 $0 $0 Subtotal Generation O&M & Fixed Fuel $466,179 $392,825 $73,354 Power Generation Production Margin Economic and reliability dispatch ($118,922) ($121,660) $2,738 Testing $0 $0 $0 Subtotal Generation Production Margin ($118,922) ($121,660) $2,738 Power Generation Non-Production Revenue Generation Capacity Credit ($573,981) ($376,703) ($197,278) Emissions Allowance Sales $0 $0 $0 Black Start & Reactive Power Revenue ($33,933) ($40,321) $6,389 Subtotal - Non-Production Revenue ($607,913) ($417,024) ($190,889) Total - Power Generation ($260,656) ($145,859) ($114,797) Total - Utilities Cost $6,763,175 $6,388,760 $374,415 Unit Costs Total - Power Supply $91.45 $90.17 $1.28 Total - Power Generation ($3.39) ($2.01) ($1.38) Final Cost of Service to City of Dover Ratepayers $88.05 $88.16 ($0.10) 4

Variance Analysis: Power Supply Due to normal temperatures and reduced load in the mid-Atlantic, Dover consumed 4,338MWh below what was forecasted. The decrease in load along with stable prices in PJM resulted in a cost of $90.17/MWh for power supply, $1.28/MWh less than budget. For the month, the city realized a favorable variance of $509,931 for power supply vs. the monthly budget. This variance can be attributed to the decrease in load from the forecast. Generation Power generation realized an unfavorable budget variance of $114,797. This included a $215,846 charge from PJM for failure to provide 3.4 MWs of expected capacity in 2010-2011. This was due to the excursion on unit 1 in July 2010. Plant O&M expenses realized a favorable budget variance of $73,354. Power Generation Production Margin realized a favorable budget variance of $2,738. Dover’s Generation output was sold to PJM at an average of $110/MWh. 5

Variance Year-To-Date: Budget Actual Variance YTD YTD Load Forecast (Net of Solar Output) 155,238 156,013 (775) Power Supply Power Supply (inc. Mgt Fees) $12,495,483 $13,093,990 ($598,507) Capacity UCAP Obligated Purchased $1,391,727 $1,433,187 ($41,459) Total - Power Supply $13,887,210 $14,527,177 ($639,967) Power Generation O&M & Fixed Fuel Plant O&M $1,177,273 $995,740 $181,533 Fixed Fuel and Transport Charges $0 $0 $0 Subtotal Generation O&M & Fixed Fuel $1,177,273 $995,740 $181,533 Power Generation Production Margin Economic and reliability dispatch ($237,844) ($1,719,489) $1,481,645 Testing $0 $0 $0 Subtotal Generation Production Margin ($237,844) ($1,719,489) $1,481,645 Power Generation Non-Production Revenue Generation Capacity Credit ($1,147,961) ($969,253) ($178,709) Emissions Allowance Sales $0 $0 $0 Black Start & Reactive Power Revenue ($67,865) ($115,170) $47,305 Subtotal - Non-Production Revenue ($1,215,826) ($1,084,423) ($131,404) Total - Power Generation ($276,397) ($1,808,172) $1,531,775 Total - Utilities Cost $13,610,814 $12,719,005 $891,808 Unit Costs Total - Power Supply $89.48 $92.92 ($3.44) Total - Power Generation ($1.80) ($10.96) $9.16 Final Cost of Service to City of Dover Ratepayers $87.68 $81.96 $5.72 6

III. Energy Management Power Supply Load (MWh) FY 2011-12 100,000 80,000 60,000 40,000 20,000 0 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May- Jun-12 12 Budget Actual Dover’s total load was 72,469 MWh versus a forecasted load of 76,807 MWh. Dover’s planned hedged volume was 80% of forecast. The decrease in load resulted in a realized hedged volume of 85% of actual load. Dover’s planned energy cost/MWh of unhedged load was $121. The actual energy cost for unhedged load was $124/MWh – this increase on a $/MWh was more in part to spreading fixed costs across the decreased load than any increase in PJM prices.. The following is a summary of Dover’s power purchases for the month: City of Dover's Wholesale Load Volume $'s Hedges 61,280 ($4,345,151.60) PJM Charges 72,469 ($1,959,613.15) TEA Fees ($83,000.00) Dover Sun Park ($146,855.10) Total ($6,534,619.85) Cost to Serve $/MWh ($90.17) 7

Purchased power variance report: Budget Actual Variance Load (MWh) 76,807 72,469 4,338 Hedged Volume (MWh) 61280 61280 0 Unhedged Volume (MWh) 15,527 11,189 4,338 Unhedged Volume (%) 20% 15% 5% Unhedged Energy Cost ($/MWh) 121 124 (3) Unit Energy Costs ($/MWh) $82.39 $80.28 $2.10 All-in Unit Energy Costs ($/MWh) $91.45 $90.17 $1.28 8

Generation Dover produced 2,825MWh of generation over 6 days in August. The total revenue from energy generation was $311,297. Dover’s production margin equaled $121,660. Dover sold generation into PJM at an average price of $110.16. City of Dover's Wholesale Generation Net Generation Mwh 2,825.89 All In Generation Margin PJM Bill Energy $ 311,297.35 PJM Capacity $ 376,703.10 Black Start, Reactive Credit, DASR & EFORp $ 40,321.46 Gas Purchases $ (162,735.00) Oil Purchases $ - Transport / Cash Out $ (26,902.15) Gross Margin $ 538,684.76 Production Margin Generation Production Revenues (PJM) $ 311,297.35 Gas Purchases $ (162,735.00) Oil Purchases $ - Transport / Cash Out $ (26,902.15) Gross Production Margin $ 121,660.20 $/Mwh All In Generation Margin $ 190.62 $/Mwh Generation Production Margin $ 43.05 9

Fuel Purchases Dover’s generation was not dispatched on #2 Fuel Oil this month. Given the limited amount of run time, there were limited gas purchases for the units. These are listed below: Spot Gas Purchases New Jersey Natural Gas Date Volume Price Total 8/1/2011 9,000. 4.70 $42,300.00 8/1/2011 3,500. 4.90 $17,150.00 8/2/2011 10,000. 4.72 $47,200.00 8/8/2011 8,000. 4.47 $35,760.00 8/8/2011 1,500. 4.85 $7,275.00 8/26/2011 500. 4.30 $2,150.00 8/27/2011 1,500. 4.40 $6,600.00 34,000 $158,435.00 Hess Corporation Date Volume Price Total 8/15/2011 1,000.00 $4.300 $4,300.00 1,000 $4,300.00 PESCO Date Volume Price Total 0 $0.00 Total 35,000 ($4.65) ($162,735.00) 10

Transportation and Imbalance Below is a table of the transportation and imbalance charges incurred in August: Eastern Shore Transport and Imbalance Charges Imbalance/dth Imbalance/dth Cost/dth Total Cost 77 $4.49 $345.35 $345.35 Transport Volume/dth $/dth Total Cost IT (Days 1-28) 35,077 $0.460900 $16,166.99 IT (Days 1-28) 33,290 $0.312100 $10,389.82 $26,556.81 Net ($26,902.15) ESNG was granted a motion to place suspended revised tariff sheets into effect on July 29, 2011 forward. The new IT rate is $.0773/dth. Emissions Emissions and Allowance Management Dover has elected not to include revenues from emission allowance sales in its 2011- 2012 fiscal year budget. Dover has more than sufficient allowances set aside for retirement (see Exhibit 1). Due to the expiration of EPA’s Clean Air Interstate Rule (CAIR) at the end of CY2011, any unused or unsold CAIR allowances will expire without residual value. Exhibit 1: Emissions Allowance Summary through August 31, 2011 2011-2012 EMISSIONS ALLOWANCE SUMMARY SO2 NOx Allowance Allowance Sale Sale Date Action Rev.1 Allocation2 Rev. Allocation Price Price Seas. Ann. N/A 2003-2006 139 0 0 Carryover 1/1/08 2007 Carryover 549 0 0 1 Revenue calculations account for a $0.50/ton broker fee for SO2, a $10/ton broker fee for annual NOx and $1/ton broker fee for seasonal NOx 2 Per Clean Air Interstate Rule (CAIR), starting in 2009, NOx emissions are governed by a seasonal and annual program. 11

1/1/09 2008 Carryover 2,691 0 0 1/1/09 2009 Allocation 2,723 53 80 2/1/10 2010 Allocation 1,988 50 78 1/1/11 2011 Allocation 1,988 49 76 4/1/11 2011 Reallocation 2 5 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 Emissions3 (1) (6) (13) 12/31/10 2010 Emissions 0 (54) (54) 10/31/10 EPA Linearity (68) (68) Testing Req. 2011 2010 Deficit NOx 53 22 Purchases Aug 2011 Revised 2010 30 30 ECMPS data 8/31/11 2011 Emissions (2) (32) (36) Pre-CAIR: 3,189 TOTAL ALLOWANCES - $0 52 74 - $0 CAIR: 3,976 TEA’s estimate, given current dispatch expectations, for the market value of the remaining CAIR allowance inventory is approximately $9,231 as of September 20, 2011. This represents $1,595 for 3,189 pre-CAIR SO2 allowances trading at $0.50/ton, $1,988 for 3,976 CAIR SO2 allowances trading at $0.50/ton, $5,180 for 74 annual NOx allowances trading at $70.00/ton and $468 for 52 seasonal NOx allowances trading at $9.00/ton. EMISSIONS & ALLOWANCE SUMMARY THROUGH AUGUST 31, 2011 Cumulative Emissions Allowances Cumulative Annual Allowance Allowance for sold in Allowance Annual Allowances Vintage Allocation August August Balance Emissions Sold 2011 2011 (Purchased) SO2: 2007- 10,157 N/A 131 N/A 4,847 5,179 10 SO2: 2011 1,988 0.1 2 0 0 1,986 NOx: Ann. 80 N/A 13 0 45 22 2009 NOx: Seas 53 N/A 6 N/A 25 22 2009 NOx Ann. 78 N/A 94.7** N/A (22) 8 3 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. 12

2010 NOx Seas 50 N/A 94.7** N/A (53) 11 2010 NOx Ann. 80 25.5 38.8 0 0 44 2011 NOx Seas 51 25.5 36.1 0 0 19 2011 Note **: EPA approved petition to use lower emissions rate for NOx on McKee Run Unit 3 by 30 tons. EPA Cross-State Air Pollution Rule or CSAPR The final CSPAR was published in the August 8, 2011 Federal Register (76 FR 48208), with an effective date of October 7, 2011. The first compliance period begins for annual SO2 and NOx allowances on January 1, 2012. As mentioned in last month’s report, CSAPR does not include compliance requirements or allowance allocations for generating units located in Delaware and Dover will not be required to submit emission allowances for annual SO2, annual NOx or Seasonal NOx for compliance years 2012 and beyond. While there continues to be the possibility of legislative and legal challenges to this new rule, affected entities must assume it will become effective on the stated date and begin complying with the rule. As stated on the EPA Website, "EPA will remove CAIR allowances of vintage years 2012 and greater from all AMS accounts on Friday, October 14, 2011. Within 2 or 3 days before this date, EPA will send an email to the designated representatives and authorized account representatives of accounts that include these CAIR allowances and remind these representatives of the scheduled removal of these CAIR allowances. After removal of the vintage year 2012 and greater CAIR allowances, on Monday, October 17, 2011, EPA will begin recording vintage year 2012 CSAPR allowance allocations in compliance accounts of units as addressed in the notice of data availability (NODA) published in the Federal Register on July 18, 2011. Unit-level CSAPR allowance allocations, and the data upon which those allocations are based, can be viewed at http://www.epa.gov/crossstaterule/techinfo.html. The Clean Air Act Title IV provisions for SO2 will remain in effect and Dover, which does not have significant SO2 emissions, will need to continue compliance with this program. SO2 and NOx CAIR prices continue to be deflated because of over-supply, as shown on Figures 1 through 3. Markets are just beginning to form for CSAPR allowance prices and the magnitude of CSAPR prices are significantly higher than recent CAIR allowance prices. 13

Figure 1 – SO2 Allowance Prices 6 5 4 $/Ton 3 2 1 0 Average of Wtd Avg Offer Price ($/ton) Average of Wtd Avg Bid Price ($/ton) Figure 2 – Seasonal NOx Allowance Prices 40 35 30 25 $/Ton 20 15 10 5 0 Average of Wtd Avg Offer Price ($/ton) Average of Wtd Avg Bid Price ($/ton) 14

Figure 3 – Annual NOx Allowance Prices 400 350 300 250 $/Ton 200 150 100 50 0 Average of Wtd Avg Offer Price ($/ton) Average of Wtd Avg Bid Price ($/ton) RGGI and Federal Carbon Outlook RGGI allowance prices continue to price at very low levels due to over-supply, dropping to $1.86 as of September 20, 2011 which is below the reserve price of $1.89/ton. The 13th RGGI auction occurred on September 7th and cleared at the reserve price of $1.89, with only 18% of the 2009-2011 control period allowances offered for sale actually being sold in the auctions. TEA continues to monitor RGGI activities. In Congress, there continues to be little movement on climate legislation. EPA continues to pursue the “Tailoring Rule” which will impact new sources and Clean Air Act Title V permitting existing source; however on September 15, 2011 EPA confirmed that it would not meet a September 30 deadline for issuing rules governing greenhouse gas emissions from power plants and other major sources. EPA issued the Mandatory Reporting of Greenhouse Gases Rule (74 FR 56260) which requires reporting of greenhouse gas (GHG) data and other relevant information from large sources and suppliers in the United States. The purpose of the rule is to collect accurate and timely GHG data to inform future policy decisions. The implementation program for this rule is referred to as the Greenhouse Gas Reporting Program (GHGRP). The deadline to submit 2010 reports is September 30, 2011. NAES has indicated it will submit the report in a timely manner. 15

IV. Operations Management NAES Corporation Dover, Delaware August 2011 Monthly Report NAES Scholarship Award is presented to Lori Berryhill, daughter of Operations Supervisor Lance Berryhill, by Plant Manager Vince Scire. 16

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 17

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 321 days without an OSHA recordable accident or a Lost Time reportable accident. The plant received no Notice of Violations (NOVs). The facility submitted the revised 2010 Q3 & Q4 ECMPS data for Unit 3 which provided the amended MER constants for emission calculation purposes. With the revised data, the EPA was able to complete the annual NOx reconciliation for 2010. Utilizing the amended MER constants, the facility emissions went from 119 NOx tons (allowances) to 89 NOx tons (allowances), a reduction 30 NOx emission allowances that were reported emitted. Work continues on addressing the Total Dissolved Solids (TDS) issue for Outfalls 004 and 005. In an effort to purse alternate and possibly less costly solutions to the handling of cooling tower blowdown, preliminary discussions with the City of Dover Public Works Department have opened the possibility of discharging the waste to the Kent County Waste Water Treatment Plant (WWTP). This option could have the additional benefit of removing the facility NPDES discharge permit (other than general storm water) as well as from the DRBC docket requirements. Further discussions with the City as well as with Kent County to develop this concept are scheduled to take place in September. Environmental training was conducted across all teams to review and discuss the facility emergency response plans (ERAP, SMP-2, SPCC, SWPPP, FRP), and specifically the 2011 Q1 and Q2 FRP exercises (Deployment Drill – Q1, Tabletop – Q2). Employee feedback regarding the exercises has been positive and productive discussions have taken place. An emphasis was put on the concept of the Incident Command System (ICS) and how it may be utilized to enhance the facilities ability to respond to incidents of all types, as well as interface with outside agencies and resources in an effective manner. Environmental, Health and Safety Statistics Month Fiscal Year to Date (August) (7/1/11-6/30/12) 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 1 Man Hours Worked 4,007.50 8,097.75 Date last OSHA Recordable 10/14/10 Date last Lost Time Accident 10/14/10 Days since last OSHA recordable 321 Days since last Lost Time Accident 321 18

Emissions (NOx & SO2) All data thru 8/31/11 NOx Summary - Year (May-Sept.)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 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 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 Run VanSant YTD McKee Run VanSant (Yr/Season) McKee Run - (Yr/Season) (Yr/Season) (Yr/Season) VanSant 2009 45/25 75/50 5/3 12/5 - 1/1 0/0 – 0/0 18/0 4/2 89**/89** - 22##/53# – 2010 0 73/47* 5/3 6/11 2/0 3/3 0/0 2011 0 75###/48### 5/3 33/31– 3/1 0/0 - 0/0 42###/17### 2/2 Note ** - EPA approved petition to use lower MER for NOx emissions. Note# - 53 tons were purchased to help compensate for the shortage in seasonal NOx allowances. Note## - 22 tons were purchased to help compensate for the shortage in annual NOx allowances. Note###- 2 tons (Seasonal and 4 tons (Annual) were reallocated by the EPA to the McKee Run 2011 account. 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 Note: Data is as of 8/31/2011 19

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 2003-2006 139 138 1 0 0 2007 2455 2585 138 98 170 2008 2392 2585 138 32 299 2009 0 2585 138 0 2723 2010 0 1850 138 0 1988 2011 0 1850 138 1 1987 Note: Data is as of 8/31/2011 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 59,805 1,699 5,796 55,708 2010 0 47,844 1,636 32,971 16,509 2011 0 35,883 1,227 17,709 19,401 2012 0 23,922 818 0 24,740 2013 0 11,961 409 0 12,370 Note: All CO2 allowance values are provided by the RGGI CO2 Allowance Tracking System 20

2.0 Financial Financial – Current Month (Estimated) Month –August 2011 Actual Budget Variance Personnel 217,325 278,125 60,800 Materials & Supplies 44,403 16,317 (28,086) Administrative Expenses 131,097 137,578 6,481 Total $392,825 $432,020 $39,195 Financial – Fiscal Year to Date (Estimated) Number of Months – 2 Actual Budget Variance Personnel 432,845 556,250 123,405 Materials & Supplies 45,342 33,549 (11,793) Administrative Expenses 517,552 559,156 41,604 Total $995,739 $1,148,955 $153,216 2.1 Variance analysis: The actual expenses for August are $392,825 against a budgeted amount of $432,020 for a favorable variance of $39,195 or ≈ 9.07%. The variance was due to the following: PERSONNEL EXPENSES – A favorable variance of $60,800 was realized in the Straight labor, Overtime, and Labor Burdens accounts due to several open staff positions. Note: Included in this variance is a positive variance of $31,912 for the Employee Incentive Accumulator and Employee Incentive Burden Accumulator that will occur every month. These expenses were broken down into every month over the entire year, instead of having them budgeted for June of 2012 when they would actually be expensed. MATERIALS AND SUPPLIES EXPENSES- The account with any appreciable variance was the Water and Sewer account which was higher than budgeted due to supporting unit operations for an unfavorable variance of $28,086. ADMINISTRATIVE EXPENSES – Lower than budgeted expenses in the areas of Electric, Environmental Expenses, DCS Control Systems / Maintenance and Combustion Turbine Maintenance contributed to a favorable variance of $6,481. The current budget forecast for the current fiscal year is $5,917,031 expensed versus an approved budget of $5,964,818 thereby realizing a 99.20%.expense rate. 21

3.0 Operations Unit Operations / Outages / Trips In the month of August, Units 3 and 11 were dispatched three times and once respectively by PJM. During the month, Unit 11 also successfully completed the PJM Capacity Test for the Summer Demonstration Period. Unit 11 was operated for the City of Dover during Hurricane Irene to supply cranking power to McKee Run Unit 3 which was on hot standby, in the event the City of Dover was disconnected from the Bulk Electric System. Month – August 2011 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 35.416 35.416 18.649 54.065 Starts # 0 0 3 3 6 9 Gross Generation MWh 0.0 0.0 2,851.488 2,851.488 192.125 3,043.613 Net Generation MWh 0.0 0.0 2,645.084 2,645.084 191.907 2,836.991 Total Auxiliaries MWh 20.115 20.115 397.537 437.767 1.516 439.283 Auxiliaries purchased MWh 20.115 20.115 191.133 231.363 1.298 232.661 Fuel Gas Used MMBTU 10.274* 8.219* 29,791.822 29,791.822 4,235.904 34,027.726 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 10.274* 8.219* 29,791.822 29,791.822 4,235.904 34,027.726 Net Heat Rate BTU/KWh 0.0 0.0 11,256 11,256 22,073 16,665 Unit Trips # 0 0 0 0 1 0 Capacity Factor % 0.0 0.0 3.49 2.61 0.66 2.18 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 744.000 744.000 708.584 2,196.584 725.351 2,921.935 Hours HW Boiler Gas Usage MMBTU 0 0 Pilot Gas Usage MMBTU 139,333 139,333 277,667 277,667 # Note: Does not include HWB or Pilot Gas. Fuel usage numbers are taken from fuel flow instruments. * Indicates fuel used for testing high gas pressure trips on Units 1 & 2. 22

2011-2012 Fiscal Year-to-Date ( 2 Month ) 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 59.234 57.267 236.585 353.086 53.600 406.686 Starts # 1 1 16 18 11 29 Gross Generation MWh 561.129 564.344 18,927.359 20,052.832 1,326.737 21,379.569 Net Generation MWh 532.006 521.173 17,544.644 18,597.823 1,325.755 19,923.578 Total Auxiliaries MWh 65.841 79.889 1,907.017 2,052.747 3.636 2,056.383 Auxiliaries purchased MWh 56.833 56.833 524.302 637.968 2.654 640.622 Fuel Gas Used MMBTU 8,554.933 7,620.677 194,854.408 211,030.018 19,347.263 230,377.281 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 8,554.933 7,620.677 194,854.408 211,030.018 19,347.263 230,377.281 Net Heat Rate BTU/KWh 15,947 15,503 11,130 14,193 17,648 15,921 Unit Trips # 0 0 0 0 1 0 Capacity Factor % 0.85 0.83 4.35 3.47 0.93 2.90 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 1,428.766 1,430.733 1,251.402 4,110.901 1,434.400 5,545.301 Hours HW Boiler Gas Usage MMBTU 0 0 Pilot Gas Usage MMBTU 139,333 139,333 277,667 277,667 Fuel Oil Inventory Monthly Monthly Fuel Monthly FY 11-12 Fuel FY 11-12 Inventory Inventory Purchases Inventory Inventory Purchases Inventory (Start) (End) (Month) (Change) (Start) (YTD) (Change) McKee Run (#2 Fuel Oil) 455,606 455,606 0 0 454,725 0 881 VanSant 153,549 152,453 0 1,096 153,212 0 1,096 (#2 Fuel Oil) Note: As measured by tank level instruments. Tank levels may change due to oil temperature. 23

VanSant Lifetime through 8/31/11 Actual Starts Factored Starts Fired Hours VanSant 1275 2202.45 4184.66 Since HGP - Dec 2004 216 534.75 801.08 Team Report: Plant employees continue General Physics safety training and environmental courses to enhance their overall knowledge of permit and safety requirements. As the GPI courses are being completed the employee reviews the standard operating procedure (SMP) for the same topic they are training on to review NAES policy as well. During the month of August, Operations staff successfully completed the PJM Capacity Test on Unit 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. Capacity Testing – FY 2010-2011 Summer 2011 (June 1- Aug 31) Winter 2011-2012 (Dec 1- Mar 1) Unit Rated Net Reported Net Unit Rated Net Reported Net Capability (MW) Capability (MW) Capability (MW) Capability (MW) 1 17 17.06 1 17 * 2 17 17.67 2 17 * 3 102 102.31 3 102 * VanSant 39 39.07 11 39 * Total 175 176.11 Total 175 175 Note: * Denotes Unit is qualified for the PJM Winter Demonstration Period Exemption Program 24

4.0 Maintenance During the month of August, plant maintenance staff continued addressing the backlog of work orders. There were fifty work orders issued with seventy-eight work orders being completed during the month. The table below summarizes the monthly work order activities. Work Order Report August - 2 Outstanding From Outstanding Previous Issued This Completed at the end of Priority # Month Month This Month the month 1 21 5 13 13 2 41 4 20 25 3 48 0 13 35 4 6 0 0 6 5 3 18 0 21 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 23 32 40 Totals 168 50 78 140 Note: PMs are included in the priority totals Notable activities during the month include: 1) Maintenance staff completed the cleaning of the lube oil tank sump pit. The staff pumped out the fluid from the sump tank and cleaned out the remaining residue and debris. The staff then properly labeled all the drums and stored them in the Used Oil Storage room in preparation for the next scheduled disposal pick-up. 2) Maintenance staff completed the removal of 2B Circulating Water Pump (CWP) and motor. The motor was removed, blocked up securely and was placed into temporary storage while the pump is being repaired. The pump was removed and blocked up while waiting for the repair contractor to arrange pick-up of the equipment. The pump will undergo a thorough inspection so that a work scope may be developed and the pump repaired to address any identified discrepancies. 3) IC& E Staff completed repairs on the security camera system and the main gate call button when the plant experienced a lighting strike. A new multiplexer and power supply for the camera system was installed to correct the problems with the 25

camera security system. A new call button was installed to correct the problem with the call button at main entrance to the plant. 4) IC&E staff assisted with the capacity test for Unit 11. During the start up of the gas turbine, the unit experienced a problem with the flame detection system. The scanners were fogging up during the ramp up of the unit. The staff cleaned the scanners and put the scanner back into service. Once the scanners were cleaned and the unit warmed up in the firing mode, the fire scanners had no more issues. 5) IC&E Staff completed the repairs on the air conditioning system for Units 1 & 2 elevator control room. The staff was able to troubleshoot the problem and avoided any interruption of control services that are housed in the control room. The room houses controls for elevator and essential radio base stations from different organization including the COD and the Delaware State Police. 26

5.0 Capital Improvement Projects (CIP) Project Description Update Number Units 1 & 2 Cooling Progress: The scope of work is being planned for 2011-2012. EG1102 Tower Life Extension Schedule: Work planned for this fiscal year is in development Progress: This project is to assess and determine the actions necessary to prolong the life of Units 1 and 2. Repair costs based on Units 1 & 2 Life turbine inspection results will have to be developed and supplied to EG1107 Extension the City of Dover in order to make a decision on how and when to proceed. The plant is still waiting on estimated costs from Siemens. Schedule: Planning for 2011-2012 fiscal year has started. Progress: The 2011 work was completed on the expansion joint. Unit 3 Air Heater EG1112 Schedule: The 2012 scheduled work is expected to be completed by Expansion Joint the end of January 2012 Progress: The 2011 work was completed on the expansion joint. Units 1 & 2 Controls EG1113 Schedule: The 2012 scheduled work will be completed by the end of Modifications Fiscal year. Progress: The 2011 Fall work scope has been developed and bids Unit 3 Gas Line are being evaluated. EG1114 Modification Schedule: The scheduled work is expected to be completed by the end of January 2012. Progress: Started on the development of the project work scope Unit #3 Boiler Air EG1201 documents. Heater Schedule: Planning for 2011-2012 fiscal year has started. Progress: Started on the development of the project work scope Unit #3 Boiler EG1202 documents. Systems Schedule: Planning for 2011-2012 fiscal year has started. Progress: Started on the development of the project work scope Unit 3 FD & ID Fan EG1203 documents. Damper Upgrade Schedule: Planning for 2011-2012 fiscal year has started. Unit 3 DCS Progress: Started on the development of the project work scope EG1204 Computers & documents. Software Upgrades Schedule: Planning for 2011-2012 fiscal year has started. Progress: This project is for the unexpected needs that may occur Miscellaneous during a budget year that were unexpected due to equipment failure EG1205 Capital Equipment for example. Replacements Schedule: The funding is in place and there are no capital items identified at this time to go into this project fund. McKee Run DI Progress: Started on the development of the project work scope EG1206 Controls documents. Replacement Schedule: Planning for 2011-2012 fiscal year has started. 27

Progress: Started on the development of the project work scope VanSant Component EG1207 documents. Replacements Schedule: Planning for 2011-2012 fiscal year has started. McKee Run Progress: Started on the development of the project work scope EG1208 Switchyard Blast documents. Walls Schedule: Planning for 2011-2012 fiscal year has started. McKee Run Progress: Started on the development of the project work scope EG1209 Structural documents. Preservation Schedule: Planning for 2011-2012 fiscal year has started. Unit #3 Cooling Progress: Started on the development of the project work scope EG1210 Tower Line documents. Inspection Schedule: Planning for 2011-2012 fiscal year has started. Progress: Development of the work scope is in the process of EG1211 Unit 3 Stack Repairs commencing. Schedule: Planning for 2011-2012 fiscal year has started. Progress: Plant Staff and NAES Turbine Services are working to Unit 3 Turbine finalize the work scope and specification and out for bids by the end EG1212 Inspection of October. Schedule: Planning for 2011-2012 fiscal year has started. Progress: Started on the development of the project work scope Unit 3 Auxiliary EG1213 documents. System Components Schedule: Planning for 2011-2012 fiscal year has started. 5.1 CIP Budget Approved Latest Budget Project Number Description Estimate ($ X ($ X 1000) 1000) Units 1 & 2 Cooling Tower Life EG1102 199 136 Extension EG1107 Units 1 & 2 Life Extension 409 409 EG1112 Unit 3 Air Heater Expansion Joint 135 135 EG1113 Units 1 & 2 Controls Modifications 150 145 EG1114 Unit 3 Gas Line Modification 60 57 EG1201 Unit #3 Boiler Air Heater 440 440 EG1202 Unit #3 Boiler Systems 130 130 EG1203 Unit 3 FD & ID Fan Damper Upgrade 92 92 EG1204 Unit 3 DCS Computers & Software 85 85 28

Upgrades Miscellaneous Capital Equipment EG1205 70 70 Replacements EG1206 McKee Run DI Controls Replacement 65 65 EG1207 VanSant Component Replacements 50 50 EG1208 McKee Run Switchyard Blast Walls 50 50 EG1209 McKee Run Structural Preservation 38 38 Unit #3 Cooling Tower Line EG1210 25 25 Inspection EG1211 Unit 3 Stack Repairs 25 25 EG1212 Unit 3 Turbine Inspection 348 348 EG1213 Unit 3 Auxiliary System Components 113 113 6.0 General Plant Information Training: Environmental training was conducted across all teams to review and discuss the facility emergency response plans (ERAP, SMP-2, SPCC, SWPPP, FRP), and specifically the 2011 Q1 and Q2 FRP exercises (Deployment Drill – Q1, Tabletop – Q2). Employee feedback regarding the exercises has been positive and productive discussions have taken place. An emphasis was put on the concept of the Incident Command System (ICS) and how it may be utilized to enhance the facilities ability to respond to incidents of all types, as well as interface with outside agencies and resources in an effective manner. Additionally, a new practice has been identified and will be incorporated into the facility bulk unloading procedures. Employees will now be required to review the delivery vehicle safety features and pertinent safety/environmental documentation prior to the commencement of unloading activities. Plant employees continue General Physics safety training and environmental courses to enhance their overall knowledge of permit and safety requirements. As the GPI courses are being completed the employee reviews the standard operating procedure (SMP) for the same topic they are training on to review NAES policy as well. Personnel: 29

NAES Scholarship awards were presented to Kayla, daughter of Operator II Eric Carrow and Lori Berryhill, daughter of Operations Supervisor Lance Berryhill. Kayla is starting her sophomore year at Wilmington College and is majoring in elementary education. Lori will be starting her sophomore year at High Point University and is majoring in criminal justice. On August 25th, Mike Shane received a NAES Service Recognition Award from Vincent Scire, Plant Manager, in recognition of completing 10 years of service working at the City of Dover Generating Facilities. Calendar of Events Date McKee Run and VanSant Title V Semi-Annual Certification Due August 1, 2011 NOx Ozone Season Ends September 30, 2011 One Year Accident Free October 14, 2011 Units 1, 2, 3 and 11 Fall Outage October 3 to December 2, 2011 Winter Capacity Period December 1, 2011 to February 28, 2012 McKee Run and VanSant Title V Annual Certification Due February 1, 2012 NOx Emissions Reconciliation Due March 1, 2012 SO2 Emissions Reconciliation Due March 1, 2012 SARA III Report March 1, 2012 Annual VanSant Black Start Test March , 2012 Units 1, 2, 3 and 11 Spring Outage TBD Air Emission Inventory April 1, 2012 McKee Run Title V Permit Renewal April 20, 2012 EIA-860 Report April 29, 2011 Units 1, 2, and 3 Spring Outage TBD NOx Ozone Season Starts May 1, 2012 EIA-923 Report May 6, 2012 Fiscal Year 2011-2012 Ends June 30, 2012 PJM Summer Capacity Test Period June 1, 2012- August 31, 2012 Toxic Release Inventory (TRI) Annual Report July 1, 2012 30

7.0 Summary of NAES Performance to Date Plant Performance FY 2011-2012 Measure Month Year to Date YTD FY Maximum Incentive Incentive Commercial 0% 0 $91,198 $91,198 Unavailability (CU) Safety 0 0 $17,099 $17,099 Environmental 0 0 $17,099 $17,099 Capacity Tests Summer Winter Summer Winter Completed Unit 1 No No Yes Yes $3,420 $3,420 Unit 2 No No Yes Yes $3,420 $3,420 Unit 3 No No Yes Yes $20,520 $20,520 Unit 11 Yes No Yes Yes $6,840 $6,840 Total YTD 100.00% Total YTD Incentive $159,597 $159,597 Incentive % Note: Units 1, 2, 3 and 11 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. 31

V. Appendix PJM Invoice Breakdown PJM Bill Summary August 2011 Gen Load Grand Total Auction Revenue Rights (68,699.41) (68,699.41) Balancing Operating Reserve (14,951.54) 31,265.59 16,314.05 Balancing Spot Market Energy (4,026.43) (118,708.35) (122,734.78) Balancing Transmission Congestion 779.62 4,465.87 5,245.49 Balancing Transmission Losses 425.40 (4,529.51) (4,104.11) Black Start Service (6,111.93) 1,665.18 (4,446.75) Day-ahead Operating Reserve (4,306.04) 8,093.43 3,787.39 Day-ahead Scheduling Reserve (4,741.95) 3,690.20 (1,051.75) Day-ahead Spot Market Energy (264,349.61) 747,504.89 483,155.28 Day-ahead Transmission Congestion (14,087.16) 58,435.35 44,348.19 Day-ahead Transmission Losses (6,758.49) 194,015.74 187,257.25 Expansion Cost Recovery 408.58 408.58 FERC Annual Recovery 4,188.29 4,188.29 Generation Deactivation Refund (741.04) (741.04) Inadvertent Interchange 5,152.41 5,152.41 Load Reconciliation for Balancing Operating Reserve (8.63) (8.63) Load Reconciliation for FERC Annual Recovery (2.27) (2.27) Load Reconciliation for Inadvertent Interchange 0.85 0.85 Load Reconciliation for Market Monitoring Unit (MMU) Funding (0.20) (0.20) Load Reconciliation for North American Electric Reliability Corporation (NERC) (0.35) (0.35) Load Reconciliation for PJM Scheduling, System Control and Dispatch Service (8.62) (8.62) Load Reconciliation for PJM Scheduling, System Control and Dispatch Service Refund 0.16 0.16 Load Reconciliation for Reactive Services (29.88) (29.88) Load Reconciliation for Regulation and Frequency Response Service (13.25) (13.25) Load Reconciliation for Reliability First Corporation (RFC) 32

(0.53) (0.53) Load Reconciliation for Schedule 9-6 - Advanced Second Control Center (0.59) (0.59) Load Reconciliation for Spot Market Energy (2,574.74) (2,574.74) Load Reconciliation for Synchronized Reserve (21.99) (21.99) Load Reconciliation for Transmission Congestion (1,187.98) (1,187.98) Load Reconciliation for Transmission Losses (60.92) (60.92) Load Reconciliation for Transmission Owner Scheduling, System Control and Dispatch Service (3.00) (3.00) Locational Reliability 716,582.05 716,582.05 Market Monitoring Unit (MMU) Funding 240.59 240.59 Meter Error Correction (5,001.83) (5,001.83) Network Integration Transmission Service 270,969.76 270,969.76 Non-Firm Point-to-Point Transmission Service (1,004.35) (1,004.35) North American Electric Reliability Corporation (NERC) 647.20 647.20 Organization of PJM States, Inc. (OPSI) Funding 46.13 46.13 PJM Scheduling, System Control and Dispatch Service - Advanced Second Control Center 1,018.62 1,018.62 PJM Scheduling, System Control and Dispatch Service - Capacity Resource/Obligation Mgmt. 1,036.02 1,036.02 PJM Scheduling, System Control and Dispatch Service - Control Area Administration 13,018.69 13,018.69 PJM Scheduling, System Control and Dispatch Service - Market Support 3,038.02 3,038.02 PJM Scheduling, System Control and Dispatch Service - Market Support Offset (440.17) (440.17) PJM Scheduling, System Control and Dispatch Service - Regulation Market Administration 195.56 195.56 PJM Scheduling, System Control and Dispatch Service Refund - Capacity Resource/Obligation Mgmt. (76.57) (76.57) PJM Scheduling, System Control and Dispatch Service Refund - Control Area Administration (1,115.90) (1,115.90) PJM Scheduling, System Control and Dispatch Service Refund - Market Support (265.33) (265.33) PJM Scheduling, System Control and Dispatch Service Refund - Regulation Market Administration (16.08) (16.08) PJM Settlement, Inc. 440.17 440.17 Reactive Services 61,572.67 61,572.67 Reactive Supply and Voltage Control from Generation and Other Sources Service (29,467.58) 31,998.27 2,530.69 Regulation and Frequency Response Service 27,364.98 27,364.98 33

Reliability First Corporation (RFC) 981.97 981.97 RPM Auction (592,549.50) (592,549.50) Synchronized Reserve 8,606.31 8,606.31 Synchronous Condensing 100.22 100.22 Transmission Enhancement 14,547.77 14,547.77 Transmission Losses (57,589.79) (57,589.79) Transmission Owner Scheduling, System Control and Dispatch Service 5,527.37 5,527.37 Balancing Operating Reserve for Load Response 0.01 0.01 Load Reconciliation for Organization of PJM States, Inc. (OPSI) Funding (0.03) (0.03) Load Reconciliation for Day-ahead Scheduling Reserve (20.66) (20.66) Emergency Load Response 893.10 893.10 Peak-Hour Period Availability 215,846.40 215,846.40 Grand Total $(724,298.81) $1,955,590.05 $1,231,291.24 34

FUND SUMMARY Total Collected $ 689,206.24 DEMEC Admin Fee Paid $ 18,312.19 State Admin Fee Paid $ 13,987.88 Grants Paid $ 391,212.50 Grants/Fees Reserved and Amount Owed $ 284,163.36 Energy Depot Paid $ 31,519.82 Efficiency Programs Paid $ 34,068.34 *Funds Available $ (84,057.85) * As of 10/11/2011 GRANTS PAID Grant Amount Review Fee Amount Date Grant Paid Applicant Type Paid Paid Owed 9/21/2007 Laura Drew Kelly Geo - Res $ 3,000.00 $ 225.00 $ - 12/5/2007 Domingo Reye Solar - Res $ 12,762.50 $ 750.00 $ - 4/16/2008 Lakeland Commercial Group Geo - Comm $ 10,800.00 $ 750.00 $ - 6/19/2008 & 08/25/2008 L.D. Shank - Triad Farms Solar - Comm $ 30,000.00 $ 750.00 $ - 10/6/2008 City of Dover Solar - Comm $ 40,820.00 $ 750.00 $ - 10/21/2008 Robert & Cynthia Hartman Geo HP- Res $ 1,800.00 $ 135.00 $ - 10/21/2008 Robert Varipapa Geo HP- Res $ 2,400.00 $ 180.00 $ - 2/27/2009 David Jump Solar - Res $ 15,000.00 $ 750.00 $ - 2/27/2009 Jakob Seren Solar - Res $ 15,000.00 $ 750.00 $ - 2/27/2009 William Sweet Solar - Res $ 15,000.00 $ 750.00 $ - 3/31/2009 LD Shank - Triad Farms Solar WH-Comm $ 3,000.00 $ 225.00 $ - 3/31/2009 Warren & Joan Seaver Geo HP- Res $ 3,000.00 $ 225.00 $ - 4/22/2009 William Sweet Solar HW $ 3,000.00 $ 225.00 $ - 4/28/2009 State of DE/DNREC - DE Solar - Comm $ 30,000.00 $ 750.00 $ - 4/29/2009 Delaware Primary Care, LLC Solar - Comm $ 30,000.00 $ 750.00 $ - 9/11/2009 NCALL Solar - Comm $ 30,000.00 $ 750.00 $ - 9/11/2009 D. Brian Beckman Geo HP- Res $ 2,000.00 $ 150.00 $ - 9/21/2009 LKSC Dover, LLC Kids Cottage Solar - Comm $ 29,925.00 $ 750.00 $ - 10/5/2009 Mark F. Boller Geo HP- Res $ 3,000.00 $ 225.00 $ - 10/5/2009 John Welgan Solar - Res $ 15,000.00 $ 750.00 $ - 11/4/2009 LKSC Dover, LLC Kids Cottage Geo - Comm $ 12,000.00 $ 750.00 $ - 3/25/2010 Minaxi Patel Solar - Res $ 15,000.000 $ 750.000 $ - 3/23/2010 J. McGiffin Jr. & K. Doyle Geo HP- Res $ 3,000.000 $ 225.000 $ - 5/28/2010 Nancy Warner Geo HP- Res $ 1,200.000 $ 90.000 $ - 6/2/2010 David Teel Geo HP - Res $ 1,800.000 $ 135.000 $ - 6/2/2010 Dewey J. Barich Geo HP- Res $ 2,400.00 $ 180.000 $ - 7/12/2010 Mike & Sharonb Laverty Solar - Res $ 5,105.000 $ 382.880 $ - 8/19/2010 James Grilli Geo HP- Res $ 1,800.00 $ 135.000 $ - 8/19/2010 Michael Noble Solar - Res $ 15,000.000 $ 750.000 $ - 9/17/2010 David Teel Solar - Res $ 7,500.000 $ - $ 562.500 3/8/2011 Michael & Carol Apgar Solar - Res $ 7,500.000 $ - $ 562.500 3/17/2011 Elizabeth Murphey School Geo HP - Comm $ 9,200.000 $ - $ 690.000 5/24/2011 Richard Avant Geo HP - Res $ 2,400.000 $ - $ 180.000 6/23/2011 Charles Messina Plumbing Solar - Comm $ 10,000.000 $ 750.000 10/4/2011 Charles Bounds Geo HP - Res $ 1,800.000 $ - $ 135.000

Arturo Sanchez Solar - Res $ - $ 562.500 Application paid by the ARRA Relief Program $ - Total $ 391,212.50 $ 13,987.88 $ 3,442.50 PENDING APPLICATIONS Grant Date Reserved Applicant Type Reservation 3/20/2009 City of Dover Geo HP $ 185,190.86 1/27/2010 Pat's Pizzeria Solar - Comm $ 30,750.000 1/17/2011 Pat's Pizzeria Hot Water - Comm $ 10,750.000 3/29/2011 Psychiatric Access Central DE Solar - Comm $ 13,937.500 7/8/2011 Michael J. Kopp Geo - Res $ 2,472.500 7/11/2011 Ruth Ann Piper Geo - Res $ 1,290.000 7/15/2011 Robert Hall Geo - Res $ 3,225.000 9/1/2011 Elizabeth Murphey School Geo - Res $ 14,550.000 Bradford Bldg 9/1/2011 Elizabeth Murphey School Geo - Res $ 12,750.000 Florence Bldg 9/1/2011 Elizabeth Murphey School Geo - Res $ 5,805.000 Elizabeth Bldg $ 280,720.86 ENERGY DEPOT FEES 3/3/2008 Start-up Fees $5,872.50 4/15/2008 Start-up Fees $1,957.50 4/15/2008 Mar, Apr, May 2008 $1,692.13 7/22/2008 June, July, Aug 2008 $1,692.13 10/10/2008 Sept, Oct, Nov 2008 $1,692.13 1/2/2009 Dec 08, Jan, Feb 2009 $1,692.13 4/3/2008 Mar, Apr, May 2009 $1,692.13 7/1/2009 June, July, Aug 2009 $1,692.13 9/11/2009 Sept, Oct, Nov 2009 $1,692.13 1/4/2010 Dec 09, Jan, Feb 2010 $1,692.13 3/29/2010 Mar, April, May 2010 $1,692.13 6/30/2010 June, July, Aug 2010 $1,692.13 10/4/2010 Sept, Oct, Nov 2010 $1,692.13 1/3/2011 Dec 2010, Jan, Feb 2011 $1,692.13 4/5/2011 Mar, Apr, May 2011 $1,692.13 7/8/2011 June, July, Aug 2011 $1,692.13 Total Paid $31,519.82 ENERGY EFFICIENCY CAMPAIGNS/EDUCATION PROGRAMS 1,500 CFL Campaign & 10/21/2008 Educational Literature $5,012.29 12/11/2008 Reimbursement for Green $3,459.12 Thermal Imager for Home Audits 3/31/2009 Program $5,581.12 Eco @ Home Energy Conserv. 1/4/2011 Calendars $20,015.81 Total $34,068.34

MEMORANDUM Department of Planning and Community Development P.O. Box 475 Dover, Delaware 19903 Phone: 302.736.7196 Fax: 302.736.4217 Date: October 20, 2011 To: Utility Committee From: Ann Marie Townshend, AICP RE: NPDES Permit for Municipal Separate Storm Sewer System (MS4) As you are aware from previous discussions, the City of Dover has a permit through the National Pollution Discharge Elimination System (NPDES) for our Municipal Separate Storm Sewer System (MS4). This permit was issued by the Department of Natural Resources and Environmental Control (DNREC) in 2003for a five-year period. The permit has been administratively extended by DNREC until all requirements of the permit are met and a new permit is in place. Under the permit, the City is required to take action to improve the quality of stormwater runoff within the City. Since the initiation of the permit, the City has struggled with compliance. In June 2010, the responsibility for managing the permit was transferred from Public Services to Planning. Also on June 2, 2010, the City received a Notice of Violation (NOV) relating to a number of permit requirements that had not been met. This NOV was closed out in November 2010, when the terms of that NOV were met. DNREC subsequently performed an audit of the City’s MS4 permit in early 2011, and in June 2011, DNREC reported the results of that audit and issued another NOV. This NOV related to outstanding permit requirements that were not addressed in the NOV issued in June 2010. The NOV issued in June 2011 includes a number of required corrective actions that must be complete by December 31, 2011. With the leadership of Michael Albert and assistance from the Watershed Assessment Section at DNREC and Wesley College Environmental Science Program, the City is making great strides in moving toward compliance with the permit requirements. This fall, the Wesley College Environmental Science Program provided an intern to help with the outstanding tasks associated with the Notice of Violation, including development of a Storm Water Management Plan for 2012-2015. The Environmental Science students are also working to develop a number of public outreach materials that will be implemented under the Storm Water Management Plan that will begin in January 2012. Tasks completed in recent months include:  Marking of storm drains in the downtown area and throughout the State Complex;  Development of a brochure for the general public about non-point source pollution;  Completion of a survey regarding attitudes about water quality;  Development of a poster regarding proper automotive care that was distributed to all automotive businesses in the City of Dover;  Insertion of an auto maintenance fact sheet into utility bills;  Continued progress on storm sewer system mapping. In addition, I have received the State’s Certified Construction Reviewer certification. Sharon Duca and I will be providing training to all City road staff and their supervisors on best management practices to protect water quality. The City’s new website also includes information on the Stormwater Program, as required by the permit.