Attachment

UTILITY COMMITTEE AGENDA December 14, 2009 - 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-m ail at Tm cdowell@dover.de.us) should you wish to be recognized. AGENDA ADDITIONS/DELETIONS 1. Dedication of Rights-of-Way and Infrastructure - Seskinore 2. Review of Utility Related CIP’s (Electric and Water/Wastewater) 3. PACE/NAES Monthly Report (October) 4. Adjournment by 5:55 P.M. /tm S:\ClerksOffice\PACKETS\2009\Committee\UTILITY\12-14-2009\12-14-2009 UTILITY.wpd THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS.

ACTION FORM PROCEEDING: Utility Committee AGENDA ITEM: 12/14/2009 DEPARTMENT OF ORIGIN: Public Services / Public Works DATE SUBMITTED: 12/03/2009 PREPARED BY: Scott D. Koenig, P.E., Public Services Manager / Director of Public Works SUBJECT: Dedication of Rights-of-Way and Public Infrastructure – Seskinore Subdivision REFERENCE: N/A RELATED PROJECT: N/A APPROVALS: City Manager EXHIBITS: Attachment A – List of Public Improvements to be accepted by the City of Dover Attachment B – Map EXPENDITURE REQUIRED: $ N/A AMOUNT BUDGETED: $ N/A FUNDING SOURCE (Dept./Page in CIP & Budget): N/A TIME TIMETABLE: All infrastructure improvements will become the responsibility of the City of Dover upon action by City Council. RECOMMENDED ACTION: Acceptance of dedication of rights-of-way and public infrastructure in the Seskinore Subdivision. Dedication is to include all of the referenced public improvements. BACKGROUND AND ANALYSIS The developer of the Seskinore Subdivision, Fox Hall Plantation Company, has requested that all public infrastructure improvements related to this subdivision be dedicated to the City of Dover for permanent ownership and maintenance. Attachment A outlines all of the public improvements associated with this subdivision. The total construction value of the public improvements is $406,645. Attachment B shows the general location and configuration of the subject rights-of-way. Fox Hall Plantation Company has constructed all of the improvements in accordance with City standards and specifications. After construction was completed, City staff inspected the public improvements and provided the developer with a list of repairs to be made to meet the City of Dover Standards and Specifications for Public Works Construction. As of this date, all work related to the public infrastructure has been completed by the developer. A one (1) year Maintenance Agreement, Letter of Credit and a Release of Liabilities have been submitted by the developer as part of the dedication process. In addition, as-built drawings of the infrastructure have also been submitted to the City for our permanent records. J:\MyFiles\Projects\Paperless Packet\ActionForm.wpd

DEDICATION OF RIGHTS-OF-WAY AND PUBLIC INFRASTURCTURE SESKINORE SUBDIVISION ATTACHMENT A The following is a list of all public improvements which are to be accepted by the City of Dover: Sewer Utility Infrastructure (Construction Value = $ 57,650): 8” SDR-35 PVC Sanitary Sewer Main - 683 l.f. 6” PVC Sanitary Sewer Laterals - 415 l.f. (18 laterals) 4' Diameter Sanitary Sewer Manholes - 4 ea. (32.48 v.f.) Water Utility Infrastructure (Construction Value = $ 84,905): 8” Ductile Iron (Class 52 Cement Lined) Water Main - 451 l.f. 6” Ductile Iron (Class 52 Cement Lined) Water Main - 481 l.f. 4” Ductile Iron (Class 52 Cement Lined) Water Main - 265 l.f. 1” Polyethylene Water Service Lines - 135 l.f. (15 services) 8” Gate Valve - 1 ea. 6” Gate Valve - 1 ea. 4” Gate Valve - 1 ea. 4” Hydrant Valve - 1 ea. 6” Hydrant Valve - 1 ea. Fire Hydrants - 2 ea. 2” Blow Off Assembly - 1 ea. Storm Water Infrastructure (Construction Value = $ 78,740): Catch Basins - 9 ea. 15” Type III Reinforced Concrete Pipe - 480 l.f. 18” Type III Reinforced Concrete Pipe - 110 l.f. 24” Type III Reinforced Concrete Pipe - 30 l.f. Flared End Sections (Concrete) - 3 ea. Street Infrastructure (0.0758 miles) (Construction Value = $ 185,350): Seskinore Court Station 0+00 to Station 4+00 400 l.f.

Attachment B Seskinore Subdivision Right of Way to be Dedicated to the City of Dover Court ino re Se sk 0 75 150 300 Feet ¯ Legend Date Printed: December 2, 2009 Date Created: December 2, 2009 Right of Way to be Dedicated File: m:\gis_data\projects\st_dedication_map Department: Public Services GIS Dover Parcels City of Dover, Delaware

City of Dover Capital Investment Plan Project Tracking Report October 31, 2009 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. Examples are Water Quality - Pear Street; New Developments - Kent County Lighting; Distribution Upgrades - Crossgates; * The FY10 Budget for Community Transportation & Streets $350,000 is expected to change based on the State of the City Review. * 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 Beginning Budget Balance $ 375,408 $ - $ 699 $ 36,619 $ 412,726 State Grants 4,000,000 1,000,000 - 105,723 5,105,723 Revolving Fund Loans - - 8,346,498 - 8,346,498 Bond Proceeds 1,912,433 - - 4,240,034 6,152,467 Impact Fees - - 518,230 - 518,230 State Funds (FY09 Carry Forward Gov Ave) - - - 710,318 710,318 Library Reserve & Contributions 3,000,000 - 3,000,000 Transfer from Operating Funds 344,802 350,000 700,000 886,012 2,280,814 Interest Earned 2,700 - - 33,700 36,400 Project Carry Forward Balances 30,000 - 1,094,697 2,652,769 3,777,466 Total Funding Sources (Unaudited) $ 9,665,343 $ 1,350,000 $ 10,660,124 $ 8,665,175 $ 30,340,642

City of Dover General Fund - Major CIP Projects October, 2009 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 Type Description Budget Budget Expenses Balance Spent Budget Budget Expenses Spent Status Comments FY2008 M Park Improvement Program $ 30,000 $ 30,000 $ - $ 30,000 0.0% $ - $ 30,000 $ - 0.0% Complete Basketball Court repaved. Totals - FY08 $ 30,000 $ 30,000 $ - $ 30,000 0.0% $ - $ 30,000 $ - 0.0% FY2009 M/G New Library Project $ 18,200,000 $ 24,679,934 $ 1,057,099 $ 23,622,835 4.3% $ 8,912,433 $ 8,912,433 $ 320,033 3.6% Started Finishing Design Development Phase. Totals - FY09 $ 18,200,000 $ 24,679,934 $ 1,057,099 $ 23,622,835 4.3% $ 8,912,433 $ 8,912,433 $ 320,033 3.6% FY2010 Vehicles & Equipment $ 372,910 $ 372,910 $ 233,051 $ 139,859 62.5% $ 372,910 $ 372,910 $ 233,051 62.5% Started Includes DFD payment & Police Grants Concrete Program 50,000 50,000 764 49,236 1.5% 50,000 50,000 764 1.5% Started Nearing completion. Transfer to CT Fund 300,000 300,000 - 300,000 0.0% 300,000 300,000 - 0.0% N/A Totals - FY10 $ 722,910 $ 722,910 $ 233,815 $ 489,095 32.3% $ 722,910 $ 722,910 $ 233,815 32.3% Grand Totals $ 18,952,910 $ 25,432,844 $ 1,290,914 $ 24,141,930 5.1% $ 9,635,343 $ 9,665,343 $ 553,848 5.7% Legend M = Multi-year project - a project with a specific schedule to occur over multiple years. R = Recurring project - a project that begins and ends each fiscal year and is rebudgeted to start over each fiscal year. G = Grant funded project

City of Dover Community Transportation & General Fund Street Funds - Major CIP Projects October, 2009 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 Type Description Budget Budget Expenses Balance Spent Budget Budget (1) Expenses Spent Status Comments FY 2002 North Street Sidewalk $ 80,416 $ 80,416 $ - $ 80,416 0.0% $ - $ 80,416 $ - 0.0% Not started Work on hold pending Collegiate decision. Totals $ 80,416 $ 80,416 $ - $ 80,416 0.0% $ - $ 80,416 $ - 0.0% FY 2005 Dover Little League Parking Lot Awaiting DELDOT/staff decision on re- Phase II $ 14,906 $ 14,906 $ 3,332 $ 11,574 22.4% $ - $ 11,574 $ - 0.0% Done appropriation of available funds. Totals $ 14,906 $ 14,906 $ 3,332 $ 11,574 22.4% $ - $ 11,574 $ - 0.0% - FY 2006 M Lincoln Park Center (317) $ 400,000 $ 400,000 $ 252,725 $ 147,275 63.2% $ - $ 147,275 $ - 0.0% Started Ongoing. Totals $ 400,000 $ 400,000 $ 252,725 $ 147,275 63.2% $ - $ 147,275 $ - 0.0% - - FY 2007 10% received from State, not part of street program. Separate contract due to nature E. Water Street Brick Sidewalk $ 65,000 $ 65,000 $ - $ 65,000 0.0% $ - $ 65,000 $ - 0.0% Not started of work. Totals $ 65,000 $ 65,000 $ - $ 65,000 0.0% $ - $ 65,000 $ - 0.0% FY 2009 Spruance Road - White Oak to Maple Parkway $ 141,000 $ 141,000 $ 50,005 $ 90,995 35.5% $ - $ 141,000 $ 50,005 0.0% Started Work in progress. Spruance Road - Maple Parkway to East Division 125,400 125,400 51,744 73,656 41.3% - 125,400 51,744 0.0% Started Work in progress. Various FY09 Streets 225,000 225,000 175,748 49,252 78.1% - 85,000 35,748 0.0% Started Independence & Greenway started. Schutte Park 21,950 21,950 - 21,950 0.0% - 21,950 - 0.0% Not Started Scheduled FY 2009. Woodsedge Road 75,000 75,000 - 75,000 0.0% - 75,000 - 0.0% Not Started Scheduled FY 2009. Various Streets 206,287 206,287 - 206,287 0.0% - 206,287 - 0.0% Not Started Westover Landscaping 2,500 2,500 1,451 1,049 58.0% - 2,500 1,451 0.0% Work is done Totals $ 797,137 $ 797,137 $ 278,948 $ 518,189 35.0% $ - $ 657,137 $ 138,948 0.0% FY 2010 Street & Alley Program $ 350,000 $ 522,690 $ - 522,690 0.0% $ 350,000 $ 472,690 $ - 0.0% Not Started Original Budget should be $300,000. Budgeted CT Agreements FY10 1,000,000 1,000,000 - 1,000,000 0.0% 1,000,000 1,000,000 - 0.0% Not Started No fiscal FY10 agreements signed Totals $ 1,350,000 $ 1,522,690 $ - $ 1,522,690 0.0% $ 1,350,000 $ 1,472,690 $ - 0.0% Grand Totals $ 2,707,459 $ 2,880,149 $ 535,005 $ 2,345,144 18.6% $ 1,350,000 $ 2,434,092 $ 138,948 10.3% 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 rebudgeted to start over each fiscal year. (1) Includes Project carry forward balances from FY 09.

City of Dover Water/Wastewater Improvement & Extension Fund - Major CIP Projects October, 2009 TOTAL PROJECT - PAST, CURRENT & FUTURE BUDGETS CURRENT FISCAL YEAR Original Latest Project Project % Approved 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 FY 2008 WD0807 South Governors Ave. Water Main Upgrade $ 200,000 $ 200,000 $ - $ 200,000 0.0% $ - $ 200,000 $ - 0.0% Started Construction North of Wyoming Ave. WD0804 M 1.0 MG Elevated Water Storage Tower 4,196,600 2,590,000 4,830 2,585,170 0.2% 200,000 196,255 1,085 0.6% Started Selecting Tank Model & Site; FY11 = Constr. Test Well at Schutte Successful; FY11 = Constr. WD0805 M Piney Point Well 398,800 665,000 29,545 635,455 4.4% - 185,455 - 0.0% Started WW0809 M South Governors Ave. Sewer Main 300,000 291,000 9,912 281,088 3.4% - 281,088 - 0.0% Started Construction North of Wyoming. WW0810 M/SL US 13 East Sanitary Sewer Interceptor 2,376,800 3,409,641 214,544 3,195,097 6.3% 3,201,480 3,201,480 6,383 0.2% Started Going to Council for Contract Approval. WW0805 M Lafferty Lane Package P/S Replacement 230,000 374,369 392,564 (18,195) 104.9% - - - 0.0% Completed In service. O/S Encumbrance $26,269. Totals - FY08 $ 7,702,200 $ 7,530,010 $ 651,395 $ 6,878,615 8.7% $ 3,401,480 $ 4,064,278 $ 7,468 0.2% FY2009 WQ0901 Washington Street $ 492,800 $ 310,100 $ 310,063 $ 37 100.0% $ - $ - $ - 0.0% Completed WQ0902 Pear-West Street 759,100 653,804 408,686 245,118 62.5% - 331,900 86,782 26.1% Started Pear Street Done. WQ0903 South Street 120,800 79,800 37,469 42,331 47.0% - - - 0.0% Completed WQ0904 Contact Chambers - residual analyzers 100,000 113,800 95,484 18,316 83.9% - - - 0.0% Completed WQ0905 M/SL Bayard Avenue 590,910 590,910 6,490 584,420 1.1% 533,510 584,420 - 0.0% Started Waiting for State financing approval. WQ0906 M/SL East side N. State Street 868,707 876,703 29,003 847,700 3.3% 846,807 847,700 - 0.0% Started Waiting for State financing approval. WQ0907 M/SL Route 13 Water Main 1,058,700 1,091,797 91,027 1,000,770 8.3% 1,023,700 1,024,400 23,630 2.3% Started Waiting for State financing approval. R Water Quality Improvements FY09 $ 3,991,017 $ 3,716,914 $ 978,222 $ 2,738,692 26.3% $ 2,404,017 $ 2,788,420 $ 110,412 28.5% Started WW0902 M/SL DE State University Pumping Station Repl. 386,400 386,400 32,449 353,951 8.4% 336,400 360,473 6,522 1.8% Started To Council for Contract Approval. WW0905 M/SL Fox Hall/Retreat Force Main Rerouting 133,100 139,245 36,519 102,726 26.2% 107,200 107,200 4,474 4.2% Started Going to Council for Contract Approval. WW0907 M/SL Acorn Lane Pump Station Replace. 386,400 386,400 33,413 352,987 8.6% 336,400 359,823 6,836 1.9% Started Going to Council for Contract Approval. Totals - FY09 $ 4,896,917 $ 4,628,959 $ 1,080,602 $ 3,548,357 23.3% $ 3,184,017 $ 3,615,916 $ 128,244 3.5% FY2010 N/A Vehicles & Equipment $ 55,600 $ 55,600 $ - $ 55,600 0.0% $ 55,600 $ 55,600 $ 9,855 17.7% Started WQ1002 M Water Quality - Walker Road 200,000 200,000 - 200,000 0.0% 200,000 200,000 - 0.0% Started Waiting for State financing approval. WD1001 R Wellhead Redevelopment Program 55,000 55,000 70,238 (15,238) 127.7% 55,000 55,000 70,238 127.7% Started Wells #13 & #15 done. Repairing Well #10. WD1002 Remote Control & Monitor Wells 55,000 55,000 - 55,000 0.0% 55,000 55,000 - 0.0% Started Radios ordered. WD1004 R Misc. Distribution System Replacements 65,000 65,000 - 65,000 0.0% 65,000 65,000 - 0.0% Not Started Ongoing, as needed. WW1001 R Inflow/Infiltration Removal - Phase II 1,800,000 1,800,000 - 1,800,000 0.0% 1,800,000 1,800,000 - 0.0% Started No bidders, relooking at spec's have to rebid. WW1002 R Scada Technology Equip Upgrade 79,300 79,300 483 78,817 0.6% 79,300 79,300 483 0.6% Started RTU's ordered. WW1006 M Del. State Univ. Force Main Rerouting 137,700 137,700 - 137,700 0.0% 26,800 26,800 - 0.0% Started Design only, awarded to Braun Engineering. WW1007 M Fox Hall Pump Station 427,900 427,900 - 427,900 0.0% 52,000 52,000 - 0.0% Started Design only, awarded to Braun Engineering. WW1008 M Heatherfield Pumping Station Upgrade 220,400 220,400 - 220,400 0.0% 40,000 40,000 - 0.0% Started Design only, awarded to Braun Engineering. WW1010 I Tar Ditch Interceptor Upgrade 518,230 518,230 - 518,230 0.0% 518,230 518,230 - 0.0% Started Design only, awarded to Braun Engineering. WW1011 R Misc. Sewer System Improvements 33,000 33,000 - 33,000 0.0% 33,000 33,000 - 0.0% Not Started Ongoing, as needed. Totals - FY10 $ 3,647,130 $ 3,647,130 $ 70,721 $ 3,576,409 1.9% $ 2,979,930 $ 2,979,930 $ 80,576 2.7% Grand Totals $ 16,246,247 $ 15,806,099 $ 1,802,718 $ 14,003,381 11.4% $ 9,565,427 $ 10,660,124 $ 216,288 2.0% 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 rebudgeted to start over each fiscal year. SL = State Loan Project - construction phase is financed I = Impact Fee Financed Project

City of Dover Electric Improvement & Extension Fund - Major CIP Projects October, 2009 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 Type Description Budget Budget Expenses Balance Spent Budget Budget Expenses Spent Status Comments FY 2006 M/B 69 KV feeders 3 and 4 $ 11,060,000 $ 8,250,382 $ 8,417,144 $ (166,762) 102.0% $ - $ 94,459 $ 261,221 276.5% Done In service. Completed south of Wyoming. M/S Governor's Avenue Rebuild 1,268,450 2,068,260 446,608 1,621,652 21.6% - 1,629,658 8,006 0.5% Started Working north of Wyoming. Totals - FY06 $ 12,328,450 $ 10,318,642 $ 8,863,752 $ 1,454,890 85.9% $ - $ 1,724,117 $ 269,227 15.6% FY 2008 Unit 3 Turb Bearing Fire Protect Selecting vendor. Deluge $ 50,000 $ 50,000 $ 85 $ 49,915 0.2% $ - $ 50,000 $ 85 0.2% Started M/B Horsepond Road Substation 1,020,000 1,039,000 1,029,397 9,603 99.1% - 9,603 - 0.0% Completed In service. McKee Run Unit 3 Pollution M/B Being tested. Remediation & Fuel Testing 3,000,000 3,120,555 2,716,578 403,977 87.1% - 506,225 102,248 20.2% Completed M/B St. Jones Substation 5,376,068 6,151,195 6,093,855 57,340 99.1% - 275,009 217,669 79.1% Completed In service. Totals - FY08 $ 9,446,068 $ 10,360,750 $ 9,839,916 $ 520,834 95.0% $ - $ 840,837 $ 320,002 38.1% FY2009 Equipment ordered. Should be Danner Farm Transformer $ 45,000 $ 45,000 $ 25,075 $ 19,926 55.7% $ - $ 21,417 $ 1,492 7.0% Started done by March. Distribution Upgrades - Schoolview 100,000 175,000 164,166 10,834 93.8% - 16,398 5,564 33.9% Started On-going. McKee & VanSant Arc Flash 50,000 50,000 - 50,000 0.0% - 50,000 - 0.0% Started Bids Awarded. Totals - FY09 $ 195,000 $ 270,000 $ 189,241 $ 80,760 149.5% $ - $ 87,815 $ 7,056 0.0% FY2010 Vehicles & Equipment $ 347,042 $ 347,042 $ 84,311 $ 262,731 24.3% $ 347,042 $ 452,765 84,311 18.6% Started Out to bid. B Vansant CT Mark IV Control (Replmnt) 700,000 700,000 166 699,834 0.0% 700,000 700,000 166 0.0% Started Council Approved Contract. B Plant Driveway 240,000 240,000 - 240,000 0.0% 240,000 240,000 - 0.0% Not Started R Misc. Upgrades 51,000 51,000 2,671 48,329 5.2% 51,000 51,000 2,671 5.2% Started Ongoing, as needed. McKee Run Smoke/Heat Detection 55,000 55,000 86 54,914 0.2% 55,000 55,000 86 0.2% Started Out to Bid. Work Mgmt. System R leplacement 85,000 85,000 - 85,000 0.0% 85,000 85,000 - 0.0% Started Out to Bid. Unit 3 Remove Cyclone Separators 51,000 51,000 - 51,000 0.0% 51,000 51,000 - 0.0% Started Design and Permitting. Unit 2 Remove Cyclone Separators 36,000 36,000 - 36,000 0.0% 36,000 36,000 - 0.0% Started Design and Permitting. Unit 1 Remove Cyclone Separators 36,000 36,000 - 36,000 0.0% 36,000 36,000 - 0.0% Started Design and Permitting. R UG Transformers 156,570 156,570 8,300 148,270 5.3% 156,570 156,570 8,300 5.3% Started Ongoing, as needed. R UG Conductors 457,780 457,780 93,187 364,593 20.4% 457,780 457,780 93,187 20.4% Started Ongoing, as needed. R Kent County Lighting Project 216,950 216,950 8,265 208,685 3.8% 216,950 216,950 8,265 3.8% Started Working in Fairfield. R Single & 3 Phase Meters 50,000 50,000 10,854 39,146 21.7% 50,000 50,000 10,854 21.7% Started Ongoing as needed. Total New Developments 881,300 881,300 120,606 760,694 13.7% 881,300 881,300 120,606 13.7% 25.0% R Lighting Improvements & Rehab 50,000 50,000 12,513 37,487 25.0% 50,000 50,000 12,513 Started In Cranbury Run& Mill Creek. R Replacement of 69KV Breakers 183,000 183,000 - 183,000 0.0% 183,000 183,000 - 0.0% Started Breakers ordered. R Replace SS Equipment (as required) 40,000 40,000 - 40,000 0.0% 40,000 40,000 - 0.0% Started Ongoing, as needed. R Distribution Capacitors 120,000 120,000 832 119,168 0.7% 120,000 120,000 832 0.7% Started In design. Under construction. May 3.6% M/B Mid City Substation 1,488,461 1,593,461 56,828 1,536,633 3.6% 1,593,461 1,593,461 56,828 Started completion planned. R PT & CT Replacement 260,880 260,880 - 260,880 0.0% 260,880 260,880 - 0.0% Started In design. R Transmission & Switches 23,000 23,000 - 23,000 0.0% 23,000 23,000 - 0.0% Started Ongoing as needed. R Upgrade Trans., Distr. Lines 351,096 351,096 109,335 241,761 31.1% 351,096 351,096 109,335 31.1% Started Ongoing as needed. B Crossgates 396,904 396,904 116,104 280,800 29.3% 396,904 396,904 116,104 29.3% Started Line burial. B Buchanan Acres 406,000 406,000 170,401 235,599 42.0% 406,000 406,000 170,401 42.0% Started Line burial. Total Distribution Upgrades 1,154,000 1,154,000 395,840 758,160 34.3% 1,154,000 1,154,000 395,840 34.3% Started In Kent Acres & S. of Dover. Totals - FY10 $ 5,801,683 $ 5,906,683 $ 673,853 $ 5,232,830 11.4% $ 5,906,683 $ 6,012,406 $ 673,853 11.2% Grand Totals $ 27,771,201 $ 26,856,075 $ 19,566,762 $ 7,289,313 72.9% $ 5,906,683 $ 8,665,175 $ 1,270,138 14.7% Legend M = Multi-year project - a project with a specific schedule to occur over multiple years. R = Recurring project - a project that begins and ends each fiscal year and is rebudgeted to start over each fiscal year. B = Bonded Project S = State fully or partially reimbursed project

City of Dover October Monthly Report Energy and Operations Management November 19, 2009 This Report was produced by Pace Global Asset Management, LLC (“Pace Global”) and is meant to be read as a whole and in conjunction with this disclaimer. Any use of this Report other than as a whole and in conjunction with this disclaimer is forbidden. Any use of this Report outside of its stated purpose without the prior written consent of Pace Global is forbidden. Except for its stated purpose, this Report may not be copied or distributed in whole or in part without Pace Global’s prior written consent. This Report and the information and statements herein are based in whole or in part on information obtained from various sources as of October, 2009. While Pace Global believes such information to be accurate, it makes no assurances, endorsements or warranties express or implied, as to the validity, accuracy or completeness of any such information, any conclusions based thereon, or any methods disclosed in this Report. Pace Global assumes no responsibility for the results of any actions and inactions taken on the basis of this Report. By a party using, acting or relying on this Report, such party consents and agrees that Pace Global, its employees, directors, officers, contractors, advisors, members, affiliates, successors and agents shall have no liability with respect to such use, actions, inactions, or reliance. This Report does contain some forward-looking opinions. Certain unanticipated factors could cause actual results to differ from the opinions contained herein. Forward-looking opinions are based on historical and/or current information that relate to future operations, strategies, financial results or other developments. Some of the unanticipated factors, among others, that could cause the actual results to differ include regulatory developments, technological changes, competitive conditions, new products, general economic conditions, changes in tax laws, adequacy of reserves, credit and other risks associated with City of Dover and/or other third parties, significant changes in interest rates and fluctuations in foreign currency exchange rates. Further, certain statements, findings and conclusions in this Report are based on Pace Global’s interpretations of various contracts. Interpretations of these contracts by legal counsel or a jurisdictional body could differ. over 25 Website: www.paceglobal.com Washington New York Houston Columbia San Diego London Moscow Mexico City

TABLE OF CONTENTS 1.0 - Executive Summary.....................................................................................................................2 2.0 - Budget Report..............................................................................................................................6 2.1 – Variance Report ..................................................................................................................6 2.2 – Variance Analysis...............................................................................................................8 3.0 – Energy Management...................................................................................................................9 3.1 - Purchased Power .................................................................................................................9 3.2 - Generation Management ...................................................................................................12 3.3 - Emissions and Allowance Management............................................................................19 4.0 – Operations Management..........................................................................................................23 Appendices..........................................................................................................................................41 I. PJM Invoice Breakdown....................................................................................................41 II. Load, All In Energy and all in cost of service table ..........................................................42 III. Glossary ........................................................................................................................43 Dover Monthly PGAM Report October 2009 - Final 1

1.0 - EXECUTIVE SUMMARY All In Unit Energy Cost - Actual v Budget Generation MWh's: Actual v Budget Actual Load vs Budget Load 10,000 $96 100,000 $94 7,500 75,000 $92 $90 MWh MWh $ /M W h 5,000 50,000 $88 $86 2,500 25,000 $84 $82 0 $80 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Budget Gen Actual Gen Budget Actual Budget ($/MWh) Actual ($/MWh) Budget WA Actual WA Purchased Power Management Wholesale load for the month of September was 56,994 MWhs versus a three year historic weather normalized load of 61,170 MWhs. Hedged transactions accounted for 53,440 MWhs or 93.8% of this volume (87.4% of forecasted load) at a cost of $4.2 million. Spot Market purchases resulted in a PJM charge of $192 thousand ($197 thousand charge in the Day Ahead market and a $5 thousand credit in the real time market). Other PJM related charges accounted for an additional $1.4 million cost, inclusive of all load related fees. October All-In Energy Unit Cost, excluding capacity obligations and credits was $3.81/MWh favorable compared to the budget for October 2009 of $89.63/MWh. For the year, projected All-In Energy Unit Cost is $96.83/MWh, $3.32/MWh favorable compared to budget; based on YTD actual 4 months results and 8 months projected costs. Generation and Asset Management For the month of October McKee Run and Van Sant units did not dispatch into the PJM market. A relatively low average on-peak LMPs for the month demonstrated that the PJM system did not generally require support from the peaking units. The budget also did not project generation for this month. Emissions and Allowance Management As shown in Exhibit 1, during the month of October, Dover neither generated emissions nor sold allowances. Year-to-date, Dover has sold 1,500 SO2 allowances at a price of $86.00 per allowance generating $128,250 ($129,000 in gross sales less $750 in broker fees). The $128,250 represents 59% of the budgeted sales for SO2 while 1,500 SO2 allowances represents 55% of the 2009 allocation and 25% of the total SO2 inventory. As of October 31, Dover held a total inventory of 4,462 tons SO2 allowances comprised of 2,722 tons of 2009 vintage allowances, 1,432 tons of 2008 vintage and 308 tons of vintage 2007 SO2 allowances. The City also held 65 tons of 2009 vintage Dover Monthly PGAM Report October 2009 - Final 2

NOx seasonal allowances and 46 tons of 2009 vintage NOx Annual. The City did not have an inventory of NOx allowances from prior years. Exhibit 1: Emissions and Allowance Summary through October 31, 2009 2009-2010 EMISSIONS & ALLOWANCE SUMMARY SO2 NOx Date Action Allowance Sale Revenue1 Allowance Sale Revenue1 Allocation Price Allocation2 Price Seas. Ann. 1/1/08 2007 549 0 -- -- -- Carryover 1/1/09 2008 2,691 0 Carryover 1/1/09 Initial 2009 2,723 -- -- 51 76 -- -- Allocation 9/29/09 SO2 Sales (1,500) $86 $128,250 9/30/09 2009 YTD 1 -- -- 5 11 -- -- Emissions3 Totals - 2007 Vintage 308 -- $20,605.5 0 -- -- -- Allowances - 2008 Vintage 1,432 -- $107,644.5 0 -- -- -- Allowances - 2009 Vintage 2,722 -- -- 46 65 -- $0 Allowances $0 $128,250 Total Revenue $128,250 Notes: (1) Revenue calculations account for a $.50/ton broker fee for SO2 and a $10/ton broker fee for NOx. (2) Per the Clean Air Interstate Rule, in 2009, NOx emissions will be governed by a seasonal and annual program. The NOx seasonal emissions pertain only to emissions (May 1 – Sep 30), similar to the previous trading regimen. Annual emissions cover the entire year. (3) The 2009 initial allowance allocation accounts for the reinstatement of CAIR while new SO2 and NOx emissions rules are completed. These allocations may changes as the rulemaking process continues. During the October 15, 2009 Management Committee meeting, the Committee resolved to sell a sufficient quantity of allowances to achieve it budget. On November 5th, 2009 and November 6th, 2009, Dover entered into transactions to sell 45 NOX annual allowances at a price of $670 per allowance and 1,410 SO2 allowances at a price of $81.00 per allowance. Additionally, Dover is in the process of completing the sale of 25 NOX seasonal allowances at a price of $110 per allowance. After deducting brokerage transaction fees, these transactions will net Dover $145,830 in revenue. Including the revenue generated from the October sale of 1,500 SO2 allowances, Dover’s total revenue for the 2009-2010 fiscal year is $274,080 (see exhibit 1). Dover’s budgeted revenue for all allowance sales during the 2009-2010 fiscal year was $274,000. Provided the sale for the 25 NOX seasonal allowances is completed as planned, Dover will have met their budgeted revenue requirements. Dover Monthly PGAM Report October 2009 - Final 3

Given current dispatch expectations, the market value of the remaining 2007-2009 Dover allowance inventory assuming all transactions initiated in November are consumated is approximately $265 thousand at the time of this report. This represents 3,052 SO2 allowances trading at $82, 21 Seasonal NOx allowances trading at $110, and 21 Annual NOx trading at $600. EMISSIONS & ALLOWANCE SUMMARY Through October 31, 2009 Allowance Allowance Emissions Emissions Allowances Allowances Allowance Vintage Allocation Month Sold Month Sold Balance SO2 – 2007 2723 0 98 0 2317 308 1 SO2 – 2008 2723 0 32 0 1259 1,432 SO2 – 2009 2723 0 1 0 0 2722 NOx – 2007 198 0 32 0 166 0 NOx – 2008 198 0 20 0 178 0 2 NOx Annu – 2009 76 0 11 0 0 65 NOx Seas – 2009 51 0 5 0 0 46 Operations Management Summary During the month of October, there were no employee or contractor related OSHA injuries, illnesses, or time loss accidents. The facility has now gone 277 days without an OSHA recordable accident and 1,916 consecutive days without a lost time reportable accident. There were zero Environmental Notices of Violations issued. There were two Near Miss Events that occurred during the month. Planned maintenance outages were completed on McKee Run Units 1 and 2 during the month. There were no unit dispatches by PJM for the generating units at McKee Run or the unit at VanSant. Monthly Budget Variance - The actual expenses attributable to O&M of the two sites for the month of October were $349,411. The expenses were $63,279 or 1.09% under the approved budget of $412,690. The principal reasons for the positive variance are due to lower water and electric usage in September and October. Risk Management Summary Both spot and forward natural gas prices have slumped moderately as the unseasonably warm temperatures have helped prevent a rally. The forward curve has become more contango, with the front end of the curve shifting lower and the back end of the curve remaining relatively unchanged from last month’s report. As the result of natural gas price stagnation, forward PJM power prices have taken on a more contango shape as well. 1 Corrected 2007 SO2 tons emitted to reflect actual emission for Units 3 & 11. December, 2007 report included emissions for all four units. 2 Approximately 10 tons of NOx Emissions resulted from February McKee testing associated with Pollution Remediation project and June emission testing. Dover Monthly PGAM Report October 2009 - Final 4

Overall, market forward wholesale Dover power prices for FY 2009-10, FY 2010-11, and FY 2011- 12 decreased by 4.26% ($2.15/MWh), 7.94% ($4.66/MWh), and 8.07% ($4.92/MWh), respectively, compared with the last reporting period. The reported wholesale Cost-of-Service values in the table below reflect these movements in market prices: Wholesale Cost-of-Service Summary (Projected) Date Budget November Oct Sep 11/16/2009 Cost- Hedge Ratio Forecasted Cost-of Year-to Cost-of Cost-of Power of- Service w/o w/ Year over Service Service Year Service Solar Solar 2008-09 $/MWh Increase $/MWh $/MWh Budget Plant Plant Budget 2009-2010 $93.26 $91.94 90% 90% 2.1% 1.95% $91.41 $91.44 2010-2011 N/A $84.74 85% 86% -7.8% -6.04% $85.28 $84.37 2011-2012 N/A $79.84 74% 76% -5.8% -11.47% $81.15 $79.84 2012-2013 N/A $73.53 56% 59% -7.9% -18.47% $75.08 $72.81 2013-2014 N/A $73.92 18% 20% 0.5% -18.03% $75.92 $71.59 *FY 08/09 Budgeted Cost-of-Service was $90.18/ MWh Dover Monthly PGAM Report October 2009 - Final 5

2.0 - BUDGET REPORT 2.1 – VARIANCE REPORT Budget Actual Variance Oct-09 Oct-09 Oct-09 Load Forecast 61,170 56,994 4,176 Power Supply Power Supply $4,237,642 $4,237,642 $0 Power Supply Management $244,214 $240,962 $3,251 Capacity Charges - Load $1,149,137 $1,154,527 ($5,390) PJM Charges - Load $1,000,778 $412,475 $588,303 Total - Power Supply $6,631,770 $6,045,606 $586,164 Generation Plant Operations $412,690 $349,411 $63,279 Generation Fuel $7,643 $8,211 ($568) Capacity Credits ($1,032,361) ($1,032,361) $0 PJM Credits ($5,403) ($5,487) $83 Total - Generation ($617,432) ($680,226) $62,794 Emission Allowance Sales Total - Emission Allowance Sales $0 $0 $0 Total Power Supply & Generation $6,014,338 $5,365,381 $648,958 Total Power Supply, Generation & Emission Sales $6,014,338 $5,365,381 $648,958 Unit Costs Total – Power Supply $108.42 $106.07 $2.34 Total - Generation + Emission Sales ($10.09) ($11.94) $1.84 Final Cost of Service to City of Dover Ratepayers $98.32 $94.14 $4.18 Dover Monthly PGAM Report October 2009 - Final 6

Budget Actual Variance YTD YTD YTD Load Forecast 292,157 267,200 24,957 Power Supply Power Supply $20,970,134 $20,970,134 $0 Power Supply Management $1,037,045 $1,018,774 $18,271 Capacity Charges - Load $4,559,478 $4,580,606 ($21,128) PJM Charges - Load $5,111,656 $1,955,658 $3,155,998 Total - Power Supply $31,678,314 $28,525,173 $3,153,141 Generation Plant Operations $1,961,437 $1,649,147 $312,290 Generation Fuel $910,494 $97,057 $813,437 Capacity Credits ($4,096,141) ($4,103,089) $6,948 PJM Credits ($1,237,942) ($115,803) ($1,122,139) Total - Generation ($2,462,152) ($2,472,688) $10,536 Emission Allowance Sales Total - Emission Allowance Sales ($57,500) ($129,000) $71,500 Total Power Supply & Generation $29,216,163 $26,052,486 $3,163,677 Total Power Supply, Generation & Emission Sales $29,158,663 $25,923,486 $3,235,177 Unit Costs Total – Power Supply $108.43 $106.76 $1.67 Total - Generation + Emission Sales ($8.62) ($9.74) $1.11 Final Cost of Service to City of Dover Ratepayers $99.80 $97.02 $2.78 Dover Monthly PGAM Report October 2009 - Final 7

2.2 – VARIANCE ANALYSIS Power Supply • As discussed during the June, 2009 Management Committee, City of Dover’s approved budget established in April utilized a preliminary PJM Base Residual Auction values. On June 2nd 2009, PJM announced the final Base Residual Auction for the current FY that resulted in an increase of $5.25 per MW.day UCAP charge ($196.57). In addition PJM also discovered and corrected errors to the variables that calculate the current FY UCAP Obligation. Collectively these charges will result in unfavorable variances each month; and in September the unfavorable variance resulted in $5,390. • The PJM Charges for Load experienced a positive $588 thousand variance due to 6.7% reduction in demand that displaced the expected Open Position by the same amount; a $136 thousand favorable Basis variance; and a $151 thousand favorable Load Following variances for the month. Furthermore, there was a $17 thousand favorable variance in transmission costs, thousand favorable variance in the PJM ancillary charges and a $11 thousand favorable variance in transmission rights credits for the month. Offsetting these favorable variances was a $73 thousand unfavorable variance in the transmission loss refund. • For the month a favorable $588 thousand net variance between the Power Supply (fixed positions) and PJM Charges Load (Open positions and transmission etc) was realized through a favorable $341 thousand variance caused by the change in volume and a favorable $247 thousand variance caused by the change in price. Hence, 58% of the variance can be attributed to the change in the volume. • The Power Supply Management variance is merely an estimate at this point. Generations • Plant O&M resulted in a favorable variance of $63 thousand compared to the approved budget of $413 thousand due to due to lower water and electric usage in September and October. Dover Monthly PGAM Report October 2009 - Final 8

3.0 – ENERGY MANAGEMENT 3.1 - PURCHASED POWER Management Highlights • Dover’s October load was 56,994 MWh which was 6.7% below the historic weather normalized load of 61,170 MWh. Hedge volumes accounted for 93.8% of actual load for the month. • The October All In Unit Energy cost excluding capacity of $85.82 is $3.81 per MWh lower than budget for the month. Actual Load vs Budget Load 100,000 75,000 MWh 50,000 25,000 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Budget Actual Dover Monthly PGAM Report October 2009 - Final 9

All In Unit Energy Cost - Actual v Budget $96 $94 $92 $90 $/MWh $88 $86 $84 $82 $80 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Budget ($/MWh) Actual ($/MWh) Budget WA Actual WA Dover Monthly PGAM Report October 2009 - Final 10

Purchased Power Variance Report Budget Actual Variance Oct-09 Oct-09 Oct-09 City of Dover Load Load Obligation (MWh) 61,170 56,994 4,176 Unit Energy Costs ($ per MWh) Energy Cost (inc. Load Following & Pace Fees) $83.14 $80.13 $3.01 Pass Through $5.22 $4.38 $0.84 Incentive Fees $1.27 $1.30 ($0.04) Total - All In Unit Energy Cost $89.63 $85.82 $3.81 Purchased Power Variance Analysis • Actual Dover load of 56,994 MWh was 6.7% below the projected October load of 61,170 MWh. • The All In Unit Energy Cost resulted in an favorable $3.81 per MWh variance due to lower than anticipated open position energy costs due to a favorable Basis variance; and favorable Load Following variances for the month. Furthermore there was a favorable variance in transmission costs, PJM ancillary charges and transmission rights credits. Offsetting these favorable variances was transmission loss refund for the month. • The Management Incentive fee variance on a $/MWh basis is merely an estimate at this point. PJM Power Balancing and Load Related Fees Purchased Power (Hedges): 53,440 MWh’s @ $79.30/MWh: $4,237,642 Power Balancing and Additional PJM and Energy Manager Fee 3: $1,807,964 Total Cost to Serve Load (60,040 MWh’s) $6,045,606 ALL in $/MWh load cost inclusive of Energy Manager Fees: $106.07/MWh 3 Includes estimated Incentive Fees. Dover Monthly PGAM Report October 2009 - Final 11

3.2 - GENERATION MANAGEMENT • During the month, PJM did not dispatch Dover units into the market. The budget did not expect any generation for the month. Generation MWh's: Actual v Budget 10,000 7,500 MWh 5,000 2,500 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Budget Gen Actual Gen Dover Monthly PGAM Report October 2009 - Final 12

2009-10 Generation Production Margin v Budget $500 Thousands $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Budget ($) Actual ($) Dover Monthly PGAM Report October 2009 - Final 13

Generation Management Variance Report Budget Actual Variance Oct-09 Oct-09 Oct-09 Self-Supplied Capacity from Gen (MW) McKee Run 1 17 17 0 McKee Run 2 17 17 0 McKee Run 3 100.3 100.3 0 Van Sant 39 39 0 Self Supplied Capacity from Gen (MW) 173.3 173.3 0 Additional Capacity from PJM Incremental Auction 0 1.7 1.7 Total Capacity from Gen (MW) 173.3 175 1.7 Gen Capacity Sales to PJM ($/MW.d) $191.32 $191.32 0 Incremental Auction Sales to PJM ($/MW.d) $0.00 $86.00 $86.00 Power Sales Power Sales (MWh) 0 0 0 Sales Revenue ($ per MWh) $0.00 $0.00 $0.00 Power Sales Revenue ($) $0.00 $0.00 $0.00 Variable Fuel & Transport Fuel Oil No.2 Volume - McKee (gal) 0 0 0 Fuel Oil No.2 - McKee ($/gal) $0.00 $0.00 $0.00 Fuel Oil No.2 Cost of Goods Sold - McKee ($) 4 $0.00 $0.00 $0.00 Fuel Oil No.2 Volume - VanSant (gal) 0 0 0 Fuel Oil No.6 - VanSant ($/gal) $0.00 $0.00 $0.00 Fuel Oil No.2 Cost of Goods Sold - VanSant ($) $0.00 $0.00 $0.00 Gas Volume (Dth) 0 0 0 Unit Gas Price ($/Dth) $0.00 $0.00 $0.00 Variable Gas Cost ($) $0.00 $0.00 $0.00 Transport ($) $0.00 $0.00 $0.00 Variable Gas and Transport Costs ($) $0.00 $0.00 $0.00 Variable Fuel & Transport Costs ($) $0.00 $0.00 $0.00 Testing $0.00 $0.00 $0.00 Generation Production Margin $0.00 $0.00 $0.00 Generation Capacity Payment Total - Generation Capacity Payment ($1,032,361) ($1,032,361) $0 4 Fuel oil consumed from testing of atomizing air compressor to be booked into Pollution Remediation CIP with total inventory cost of $15,375.66. Dover Monthly PGAM Report October 2009 - Final 14

Generation Management Variance Analysis Fuel Expense • PJM did not dispatch Dover units into the market and it did not consume any fuel oil nor spot natural gas purchase related to the power generation. Generation Production Margin Transaction Volumes Revenue/(Cost) PJM Invoice for Power Sold 0 MWh’s $0 Fuel and Transport 0 dth gas/0 gal #6 oil $0 0 gal #2 oil Generation Production Margin 0 MWh’s $0 The following non-production energy revenues and costs are generally fixed and not directly related to generation dispatch and power production. PJM Invoice (Black Start) $5,487 Fuel Oil Tank Heating & Black Start Gas Supply $0 Eastern Shore Demand Charge ($4,489) Eastern Shore Transport and Imbalance Charge $0 Transco Demand Charge ($3,722) Non-Production Energy Revenue/Costs ($2,724) Dover Monthly PGAM Report October 2009 - Final 15

Fuel and Transportation During the month, there were no unit dispatches by PJM. Date Volume (Dth) Price ($/Dth) Total Commodity Cost ($) Hess Corp Sub-Total 0 $0.00 $0.00 PESCO Sub-Total 0 $0.00 $0.00 NJNG Sub-Total 0 $0.00 $0.00 Total 0 $0.00 $0 Do to the conversion from #6 residual oil to Low sulfur #2 oil the need for a constant supply of natural gas to heat the #6 fuel is no longer required. Some gas will still be required for winter heating of the building(s). Pace will still coordinate with NAES on the procurement of supply. However, this expense will now fall under the plant utility costs and be paid and budgeted for by the station. Dover Monthly PGAM Report October 2009 - Final 16

Gas Transportation Purchased Eastern Shore Natural Gas Pipeline and TransCo agreements provide for deliveries to the McKee Run and VanSant stations. These charges include a firm demand charge and adjustments as follows: ESNG FT Demand Charge $4,489 TransCo FT Demand Charge $3,722 Total Purchases $8,211 Other Gas Purchases Commodity and transportation imbalances on Eastern Shore Pipeline for the month resulted in no charge and it is summarized as follows. Eastern Shore Transport and Imbalance Charges Imbalance/dth Estimated Cost/dth Estimated Total Cost 0 $0.00 $0.00 $0.00 Transport Volume/dth $/dth Total Cost Firm/IT 0 $0.00 $0.00 Net Charge $0.00 Dover Monthly PGAM Report October 2009 - Final 17

Purchased Commodity Fuel Oil Summary Neither McKee Run units nor Van Sant were dispatched into PJM. During the month McKee Run consumed fuel oil to test atomizing air compressor testing which are to be allocated into the Pollution Remediation CIP account. Tank Inventory Estimates as of October 31 Tank Tank Capacity Inventory In Days of Burn (gallon) (gallon) (Typical Dispatch 5) McKee Run (#2 Fuel 2,554,105 449,438 3 Oil) VanSant 258,000 94,219 3 (#2 Fuel Oil) 5 As measured by tank level instruments. Tank levels may change due to oil temperature. Dover Monthly PGAM Report October 2009 - Final 18

3.3 - EMISSIONS AND ALLOWANCE MANAGEMENT On November 5th, 2009 and November 6th, 2009, Dover agreed to sell 45 NOX annual allowances at a price of $670 per allowance and 1,410 SO2 allowances at a price of $81.00 per allowance. Additionally, Dover is still in the process of completing a contract for the sale of 25 NOX seasonal allowances at a price of $110 per allowance. After deducting brokerage transaction fees, these transactions will net Dover $145,830 in revenue. Including the revenue generated from the October sale of 1,500 SO2 allowances, Dover’s total revenue for the 2009-2010 fiscal year is $274,080 (see exhibit 1). Dover’s budgeted revenue for all allowance sales during the 2009-2010 fiscal year was $274,000. Provided the sale for the 25 NOX seasonal allowances is completed as planned, Dover will have met their budgeted revenue requirements. Dover has emitted 1 ton of SO2, 6 tons of NOX during the NOX seasonal period, and 12 tons of NOX Annual – these emissions levels remain unchanged from the previous monthly report. All units operated for testing purposes, and the appropriate allowance deductions are noted in the table below. Exhibit 1: Emissions and Allowance Summary through October 30, 2009 2009-2010 EMISSIONS & ALLOWANCE SUMMARY SO2 NOx Date Action Allowance Sale Revenue1 Allowance Sale Revenue1 Allocation Price Allocation2 Price Seas. Ann. 1/1/08 2007 549 0 -- -- -- Carryover 1/1/09 2008 2,691 0 Carryover 1/1/09 Initial 2009 2,723 -- -- 51 76 -- -- Allocation 9/29/09 SO2 Sales (1,500) $86 $128,250 9/30/09 2009 YTD 1 -- -- 5 11 -- -- Emissions3 Totals - 2007 Vintage 308 -- $20,605.5 0 -- -- -- Allowances - 2008 Vintage 1,432 -- $107,644.5 0 -- -- -- Allowances - 2009 Vintage 2,722 -- -- 46 65 -- $0 Allowances $0 $128,250 Total Revenue $128,250 Notes: (1) Revenue calculations account for a $.50/ton broker fee for SO2 and a $10/ton broker fee for NOx. (2) Per the Clean Air Interstate Rule, in 2009, NOx emissions will be governed by a seasonal and annual program. The NOx seasonal emissions pertain only to emissions (May 1 – Sep 30), similar to the previous trading regimen. Annual emissions cover the entire year. (3) The 2009 initial allowance allocation accounts for the reinstatement of CAIR while new SO2 and NOx emissions rules are completed. These allocations may changes as the rulemaking process continues. Dover Monthly PGAM Report October 2009 - Final 19

SO2 The SO2 allowance market slumped during the last month with the most recent market closing price at $73/ton, down from the mid to low $80/ton range for much of September and October. Overall, SO2 prices remain down as market participants await the release of the new CAIR rules. Sometime in 2010, EPA is expected to release re-promulgated CAIR rules in response to the DC Circuits remand of the original CAIR rules. Additionally, EPA is set to deliver new short-term standards for SO2 due November 16, 2009. 6 EPA is expected to adopt a new one-hour national ambient air quality standard (NAAQS) in the range of 50-75 parts per billion (ppb). The NAAQS is currently a 24-hour daily maximum concentration of 140 ppb. Regulatory uncertainty combined with continued low projected emissions for 2009 continue to drive PACE’s belief that trading for SO2 will be relatively flat for the remainder of the year, with prices likely to stay at or near current price levels. SO2 prices fell over 10% over the last month in moderate to light trading, however Dover completed a sale for their SO2 allowances before the market for SO2 allowances dropped significantly in November (detail to be provided in November 2009 Monthly Report). Figure 1 – SO2 Prices since last monthly report SO2 Prices $86.00 $84.00 $81.00 $82.00 $80.00 $78.00 $76.00 $74.00 $72.00 $70.00 $68.00 $66.00 10 10 /1 /16/ 8/ 10 200 2009 /20/ 10 200 10 /2 /22/20 9 9 09 4/ 10 200 10 /2 /26/ 8/20 9 09 10 200 11/30/ /1 20 /2 09 9 11 009 /3/2 11 009 11 /5/2009 /7/2 11 009 11 /9 /1 /2 1/ 009 11 200 11 /1 /13/ 5/20 20 9 09 09 NOx Annual NOx allowance prices fluctuated between $580/ton and $700/ton before closing most recently at $645/ton, up from $600/ton a month ago. Seasonal NOX continued to slide, trading most recently at $107.50/ton down from $130.00/ton in mid-October. As with the SO2 market, the NOX markets remain in flux as uncertainty surrounds future regulations as replacement rules for CAIR will likely not be released until mid-2010. Lower 2009 emissions, combined with better than expected emissions control installations (SCR, SNCR, low- NOX burners, etc.) continue to limit the NOX markets. 6 The new EPA short-term rules for SO2 have not yet been released as of the drafting of this memo. Dover Monthly PGAM Report October 2009 - Final 20

Figure 2 – NOX annual prices since last monthly report NOX Annual Prices $750 $700 $670 $650 $600 $550 10 /1 6/ 10 2 00 /1 8/ 10 2 00 9 /2 0 10 /2 0 /2 2/ 9 10 2 00 /2 4/ 09 9 10 2 00 /2 6/ 10 2 00 /2 8 10 /2 0 /3 09 9 9 0/ 11 009 /1/2 11 0 09 /3/22 11 0 0 /5 9 /2 11 0 09 /7 11 0 09/2 /9 11 /20 /1 09 1/ 11 2 00 /1 3/ 9 11 2 00 /1 5/ 20 9 09 SO2 and NOx Outlook SO2 and NOX market participants continue to look to Washington D.C. for some regulatory certainty without any avail. While volume in both NOx and SO2 were higher than in past months, activity is still tepid as market making clarity, in the form of regulation, is lacking. With health care, climate change and energy continuing to capitalize most of the attention in congress, it is unlikely that new legislation regulating these pollutants will take place any time soon. As such, EPA will continue to work towards re-promulgating the CAIR rules. Pace continues to closely monitor the NOx and SO2 markets and will provide Dover with assessments of allowance allocations, liquidity, and value as information becomes available. RGGI and Federal Carbon Outlook RGGI market prices fluctuated between $2.28/ton and $2.34/ton, with the most recent trades at $2.29/ton. RGGI prices have remained fairly steady the last month and a half as market participants wait for the results of the December 2 allowance auction. RGGI prices are not expected to increase much, if at all, in the near term as 2009 U.S. CO2 emissions projections continue to be below that of 2008 emissions. The over allocation of RGGI have led to a healthy allowance bank further pushing RGGI allowance prices down. Based on projected generation and emissions Dover is projected to have an excess of 70,000 allowances through 2013 with a market value at current prices of $160,300. Dover Monthly PGAM Report October 2009 - Final 21

Figure 3 – RGGI prices since last monthly report RGGI Prices $2.36 $2.34 $2.32 $2.30 $2.28 $2.26 $2.24 $2.22 10 10 10 /1 /16/ 8/20 2009 09 10 10 /2 /2 /20/ 2/20 2009 09 10 10 /2 /24/ 6/ 8/20 2009 09 10 11/30/ /1 20 20 /2 09 09 11 11 /3 /5/2 /200 00 009 9 11 11 11 /7 /9/2 /200 009 9 9 11 /1 /11/ 3/20 2009 09 The conversion potential of RGGI allowances into federal allowance volume in a national carbon market remains the main support for RGGI pricing. Under both the House passed climate bill and Senate draft climate bill, RGGI allowances would be eligible for federal allowance exchange based on the average auction clearing price for the year the RGGI allowance was issued. For example, for 2009 vintage allowances, the average auction clearing price for this year’s first three auctions is just under $3.00/ton. If in 2012, federal allowances were being auctioned for $12/ton, 2009 vintage RGGI allowances could be traded in at a ratio of 4:1 (4 RGGI allowances would equal 1 federal allowance). Passage of comprehensive climate legislation continues to look less and less likely for 2009 as many issues remain unresolved and in debate including, allowance allocations, international trade provisions, and oversight of the carbon offset program. PACE continues to project passage of climate legislation between the end of this year and Q3 of 2011. Dover Monthly PGAM Report October 2009 - Final 22

4.0 – OPERATIONS MANAGEMENT Management Highlights • During the month of October, there were no restricted work days or lost time accidents. The facility has now gone 277 days without an OSHA recordable accident and 1,916 consecutive days without a lost time reportable accident. The plant received no Notice of Violations (NOVs). There were no environmental deviations or other permit deviations during the month. • During the month, there were no units dispatched at either McKee Run Generating Station or VanSant Generating Station. • The installation of the Atomizing Air Compressor was completed along with the testing. Testing of the Air Atomization Air Compressor included the burning of #2 Fuel Oil to determine and to adjust the ramp rate of the boiler within acceptable limits. • Work continued on the removal of the out of service railroad car unloading station piping. • The Mark IV Controls Replacement project is in the bid evaluation process. It is expected that a selection will be made sometime in the next several weeks. • The Capital Improvement Projects (CIP) were developed by plant staff and were submitted at the end of October for the City of Dover and Pace to review. The plant’s budget is still under development and is still ongoing. The expected submittal to Pace for review will be in early November. • The planned maintenance outages were completed on Units #1 & #2. • Four people from the Operations group at the NAES facility at Benning Road in Washington, DC recently toured the McKee Run facility on a fact finding mission. • The following is the NAES Monthly Report as submitted to PGAM Dover Monthly PGAM Report October 2009 - Final 23

NAES Corporation Dover, Delaware October 2009 Monthly Report Atomizing Air Compressor for Unit 3 (Used for Start Up of Unit 3 on #2 Fuel Oil) Dover Monthly PGAM Report October 2009 - Final 24

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 Dover Monthly PGAM Report October 2009 - Final 25

1.0 Environmental, Health and Safety: During the month of October, there were no restricted work days or lost time accidents. The facility has now gone 277 days without an OSHA recordable accident and 1,916 consecutive days without a lost time reportable accident. The plant received no Notice of Violations (NOVs). There were no environmental deviations or other permit deviations during the month. There were two Near Misses reported during the month. The first Near Miss was a failure to LOTO a roof top air conditioning unit while replacing a belt. The second Near Miss occurred when a plant employee ran into the side of the plant building with his personal vehicle. Environmental, Health and Safety Statistics Month Fiscal Year to Date (October 2009) (7/1/09-6/30/10) NOVs 0 0 Opacity Deviations 0 0 Environmental Deviations 0 2 OSHA Recordable 0 0 OSHA LTA's 0 0 First Aid cases 0 0 Restricted Workday Accident 0 0 Near Miss 2 2 Man Hours Worked 4,366.0 18,725.5 Date last OSHA Recordable 1/27/09 Date last Lost Time Accident 4/05/05 Days since last OSHA recordable 277 Days since last Lost Time Accident 1,916 Emissions (NOx & SO2) All data thru 10/31/09 NOx Summary - Year (May-Sept.)Tons Year Unit #1 Unit #2 Unit #3 Unit #11 TOTAL 2008 1.01 0.96 17.0 1.28 20.25 2009 0.9 0.7 4.2 0.6 6.4 2010 0.0 0.0 0.0 0.0 0.0 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 0.0 0.0 0.0 0.0 0.0 2011 0.0 0.0 0.0 0.0 0.0 Dover Monthly PGAM Report October 2009 - Final 26

SO2 Summary - Year (Jan.-Dec.)Tons Year Unit #1 Unit #2 Unit #3 Unit #11 TOTAL 2007 6.28 5.31 97.69 0.28 109.56 2008 0.011 0.009 31.0 0.6 31.6 2009 0.0 0.0 0.1 0.2 0.3 Note: *Denoted data is as of 10/31/2009 SO2 Allowances Summary SO2 Allowances SO2 Available Total SO2 SO2 Allowances (Per Unit, Prior to Tons Allowances SO2 Allowance Sold - YTD Sale & Emitted – Balance Vintage Reconciliation) U3 and U11 Unit #3 Unit #11 YTD 2007 2317 2585 138 98 308 2008 1259 2585 138 32 1432 2009 0 2585 138 0 2723 Note: Denoted data is as of 10/31/2009 Note: 241 Tons of Vintage 2007 Allowances and 1259 Tons of 2008 Vintage Allowances were sold in September 2009 NOx Allowances Summary NOx Allowances NOx Available Total NOx NOx NOx Allowance Allowances (Per Facility, Prior to Tons Allowances Vintage Sold - YTD Sale) Emitted Balance (NOx Season) Unit #3 Unit #11 2007 165 191 7 33 0 2008 178 191 7 20 0 2009 0 191 7 7 191 2010 0 191 7 0 198 Note: NOx Season is May 1 to September 30. CAIR NOx Allowances Summary* CAIR CAIR NOx NOx Allowances Available Total NOx Allowance Balance NOx Allowances (Per Facility, Prior to Sale) NOx Tons Allowance Sold YTD Emitted McKee VanSant McKee Run VanSant Vintage Run (Yr/Season) (Yr/ (Yr/Season) (Yr/Season) Season) (Yr/Season) 2009 0 73/48 5/3 11/5 61/44 4/2 2010 0 71/46 5/3 0 71/46 5/3 Note *– CAIR legislation is pending revision Dover Monthly PGAM Report October 2009 - Final 27

CO2 Allowances Summary* CO2 CO2 CO2 Allowances Available Total CO2 CO2 Allowance Allowances (Per Facility, Prior to Sale) Tons Emitted Allowance Vintage Sold YTD Balance McKee VanSant Run 2009 0 55,132 1,699 5,785 53,085 2010 0 47,844 1,636 0 49,480 2011 0 35,883 1,227 0 37,110 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. Dover Monthly PGAM Report October 2009 - Final 28

2.0 Financial Financial – Current Month Month – October 2009 Actual Budget Variance Personnel 235,227 234,584 (643) Materials & Supplies 4,024 30,875 26,851 Administrative Expenses 110,160 147,231 37,071 Total $349,411 $412,690 $63,279 Financial – Fiscal Year to Date Number of Months – 4 Actual Budget Variance Personnel 913,575 1,060,667 147,092 Materials & Supplies 23,947 109,100 85,153 Administrative Expenses 711,625 791,670 80,045 Total $1,649,147 $1,961,437 $312,290 2.1 Variance analysis: The original budget for October is $412,690. The actual expenses for October are $349,411 for a favorable variance of $63,279 or approximately 1.09%. The variance was due to the following: PERSONNEL EXPENSES - Labor, overtime, and burdens accounted for a total unfavorable variance of $643 due primarily to filling shifts due to illness or flex time which offset the savings realized from not filling the open position at this time. MATERIALS AND SUPPLIES EXPENSES- A favorable variance of $26,851 was due to no generation in September and October resulting in lower water costs than originally budgeted. Money allocated in October for the purchase of water chemicals was not incurred due to the present inventory at the plant. ADMINISTRATIVE EXPENSES – A favorable variance of $37,071 was due largely to timing of expenses in the insurance account. The funds budgeted for October were included in the payment made in July. In addition, electric costs were less than anticipated due to the no generation in October. Home Office Labor costs were lower than budgeted. With four months of actual costs expensed, the plant budget is currently forecasted to finish this fiscal year at $5,574,213 expensed versus $5,798,711 budgeted putting the budget at a 96.13% rate. Dover Monthly PGAM Report October 2009 - Final 29

3.0 Operations Unit Operations / Outages / Trips During the month, there were no units dispatched at either McKee Run Generating Station or VanSant Generating Station. Testing of the Air Atomization Air Compressor was conducted which included the burning of #2 Fuel Oil to determine and to adjust the ramp rate of the boiler within acceptable limits. Month – October 2009 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 0.00 0.00 0.00 0.00 0.00 0.00 Starts # 0 0 0 0 0 0 Gross Generation MWh 0.0 0.0 0.0 0.0 0.0 0.0 Net Generation MWh 0.0 0.0 0.0 0.0 0.0 0.0 Total Auxiliaries MWh 24.839 24.839 147.492 197.169 2.248 199.417 Auxiliaries purchased MWh 24.839 24.839 147.492 197.169 2.248 199.417 Fuel Gas Used MMBTU 0.0 0.0 0.0 0.0 0.0 0.0 Fuel Oil Used MMBTU 0.0 0.0 1,272 1,272 0.0 1,272 Fuel Oil Used Gallons 0.0 0.0 8,402* 8,402* 0.0 8,402* Total Fuel MMBTU 0.0 0.0 1,272 1,272 0.0 1,272 Net Heat Rate BTU/KWh 0.0 0.0 0.0 0.0 0.0 0.0 Unit Trips # 0 0 0 0 0 0 Capacity Factor % 0.0 0.0 0.0 0.0 0.0 0.0 Availability Factor % 85.95 89.15 100.00 93.78 100.00 97.77 Commercial % 0 0 0 0 0 0 Unavailability (CU) Planned Outage 80.750 0 Hours 104.500 185.250 0 185.250 Hours 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 Reserve Shutdown Hours 639.500 663.250 744.000 2,046.750 744.000 2,790.750 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 * Note- Fuel was used during start up testing of Unit 3 using the new Atomizing Air Compressor Dover Monthly PGAM Report October 2009 - Final 30

2009-2010 Fiscal Year-to-Date (4 Months) 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 19.133 19.133 6.750 25.883 Starts # 0.0 0.0 2 2 2 4 Gross Generation MWh 0.0 0.0 1,096.836 1,096.836 200.929 1,297.765 Net Generation MWh 0.0 0.0 1,001.557 1,001.557 200.788 1,202.345 Total Auxiliaries MWh 84.049 84.049 705.359 873.457 5.942 879.399 Auxiliaries purchased MWh 84.049 84.049 610.080 778.178 5.801 783.979 Fuel Gas Used MMBTU 0.0 0.0 12,111 12,111 2,715 14,826 Fuel Oil Used MMBTU 0.0 0.0 1,272 1,272 0.0 1,272 Fuel Oil Used Gallons 0.0 0.0 8,402* 8,402* 0.0 8,402* Total Fuel MMBTU 0.0 0.0 13,383 13,383 2,715 16,098 Net Heat Rate BTU/KWh 0.0 0.0 12,092 12,092 13,521 25,613 Unit Trips # 0 0 0 0 0 0 Capacity Factor % 0.0 0.0 1.45 1.45 0.69 1.08 Availability Factor % 85.95 89.15 100.00 93.78 100.00 97.77 Commercial % 0 0 0 0 0 0 Unavailability (CU) Planned Outage Hours Hours 104.500 80.750 0 185.250 0 185.250 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 Reserve Shutdown Hours Hours 2,874.500 2,871.250 2,932.867 8,678.617 2,945.250 9,422.617 HW Boiler Gas Usage MMBTU 0 0 Pilot Gas Usage MMBTU 0 0 0 0 * Note- 8,402 gallons of #2 Fuel was used during start up testing of Unit 3 using Atomizing Air Compressor VanSant Lifetime through 10/31/09 Actual Starts Factored Starts Fired Hours VanSant 1195 2017.75 3,941.50 Since HGP - Dec 2004 146 350.05 557.878 Fuel Oil Inventory Monthly Monthly Fuel Monthly FY 09-10 Fuel FY 09-10 Inventory Inventory Purchases Inventory Inventory Purchases Inventory (Start) (End) (Month) (Change) (Start) (YTD) (Change) McKee Run (#2 Fuel Oil) 452,963 449,438 0 3,525 337,519 123,045 111,919 VanSant 94,304 94,219 0 85 94,388 0 84 (#2 Fuel Oil) Note: As measured by tank level instruments. Tank levels may change due to oil temperature. Dover Monthly PGAM Report October 2009 - Final 31

Capacity Testing – FY 2009-2010 Summer 2009 (June 1- Aug 31) Winter 2009-2010 (Dec 1- Mar 1) Unit Rated Net Reported Net Unit Rated Net Reported Net Capability (MW) Capability (MW) Capability (MW) Capability (MW) 1 17 17.24 1 17 * 2 17 17.59 2 17 * 3 102 102.00 3 102 * VanSant 39 40.30 11 39 * Total 175 177.13 Total 175 0.0 Note: * depicts a unit that has not completed capacity test for the PJM Demonstration Period in FY 2009- 2010. Team Report: The Operation teams completed testing the new air atomizing compressor for use on Unit #3 during start up when natural gas is too expensive or unavailable. The unit has a designated burner with a dedicated oil gun tip just for start up on the unit so the plant is not dependent on natural gas as well as providing substantial savings by not having the expense of paying for firm prices for gas. There were three days of testing in which adjustments to the air pressures, oil pressure and burner scanners achieved the proper boiler temperature ramp rate. The final test included ramping the boiler up until sufficient steam was available to atomize the fuel oil and continue with ramping up the boiler to a state that the turbine-generator could be rolled up for eventual synchronization to the grid. A procedure has been written and will be implemented. The operation teams continue to work with maintenance removing all the non-asbestos insulation and lagging from the abandoned oil lines and hot water lines from the railroad car unloading station to the truck unloading station at McKee Run. The teams are also removing the non-asbestos insulation and lagging from the now abandoned hot water lines used to heat the #6 oil from the main building to the truck unloading station. Once the insulation is removed, the pipeline is then properly drained, cut into smaller sections, placed into a collection dumpster and then sold as scrap. The teams are continuing to train to complete and review their EDQP program. 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. Teams continued training within the Plant Readiness Program (PRP) to keep their skills and knowledge of the plant up to date particularly when the generating units are off line or when they are not supporting maintenance activities. The GPI online training which supports our safety and environmental training are being used by the teams to complete their training. GPI also has a number of courses that are used to support operator advancement and refresher training. Dover Monthly PGAM Report October 2009 - Final 32

4.0 Maintenance During the month of October, plant maintenance staff continued addressing the backlog of work orders. Sixty-two work orders were issued during the month, with fifty-seven work orders being completed during the month. The table below summarizes the monthly work order activities. Work Order Report October - 09 Outstanding From Outstanding Previous Issued This Completed at the end of Priority # Months Month This Month the month P1 0 0 0 0 P2 1 1 1 1* P3 4 13 13 4 P4 13 17 9 21 P5 26 2 8 20 P6 0 0 0 0 P7 18 0 3 15 P8 14 0 0 14 P9 11 2 0 13 P6 - 1 0 0 0 0 P6 - 2 0 0 0 0 P6 - 3 1 1 2 0 P6 – 4 0 0 0 0 P6 – 5 0 0 0 0 P6 – 6 0 0 0 0 P6 – 7 0 0 0 0 P6 - 8 0 0 0 0 PM 10 26 21 15 Totals 98 62 57 103 Note: PM's are included in the priority totals *VIM working on VanSant CEMS program problem. Notable activities during the month include: 1) Work continued on the removal of the out of service railroad car unloading station piping. Maintenance staff, along with Operations staff, has been removing insulation, lagging and piping from the railcar unloading area to the truck unloading station. There is still some work remaining on the project that is expected to be completed within the next several months. 2) The McKee Run Operations Staff started the demineralizer regeneration process and soon realized that more acid and caustic pump lines were blocked with product. Maintenance staff removed lines and flushed lines to eliminate material buildup. Lines were placed back in service and the regeneration process completed. Dover Monthly PGAM Report October 2009 - Final 33

3) All the maintenance staff worked on completing preventative maintenance on Units 1 and 2. During the weeks of October 5th and 12th, the maintenance staff opened boiler, turbine and condenser doors that allowed for the completion of a number of inspections. Findings from the inspections included worn air heater top guide bearings, duct work air in leakage, damaged air heaters seals on Unit 2, damaged air heater soot blower housing on Unit 2 and one expansion joint on Unit 2 that will be replaced at a later date. Repairs were made to both units and the outages cleared, resulting in no risk to generation. 4) The Maintenance staff, Mr. Vince Scire and Mr. Ken Beard inspected each boiler and duct work. Included in the inspection was an assessment of the tasks and designs needed for the removal of the multicyclone equipment and other duct work modifications. 5) The I, C, & E Technicians inspected, cleaned and meggered breakers, motors and control cabinets. Inspected and made calibration corrections to the ID/FD fan dampers. 6) Completed State of Delaware required mass flow calibrations on Units 1, 2, and 3 fuel oil and gas flow measuring devices. 7) Completed one safety related work order for removal and installation of defective emergency lighting in the VanSant DI building. Dover Monthly PGAM Report October 2009 - Final 34

5.0 Capital Improvement Projects (CIP) Project Description Update Number EG0801 MR Fire Protection Progress: Project deferred to 2009 to investigate an System Upgrades alternative technical approach. Quotes are due 11/13/09. After analysis and bid clarification, a vendor will be selected. Schedule: Quotes are due 11/13/09. Plant staff will then get bid clarification and will perform an analysis of the bids. Installation now projected to be early 2010. EG0804 MR Pollution Progress: Change out of fuel oil equipment has been Remediation completed. Units 1, 2 and 3 have successfully made the Equipment conversion and successfully completed a Winter Period Capacity Test. The plant received letters (2) from the DNREC. The first letter provided the NOx emission rates for Units 1, 2 and 3. The second letter provided concurrence from the DNREC that the multicyclones were not a pollution control device and that they could be removed from the operating permit once the plant submits the necessary forms. Schedule: Additional testing & tuning needed to optimize Unit 3 operation will be done as opportunities arise with dispatch by PJM. The plant has contracted with a vendor to put the documentation together for plant review and submission. This is expected to be completed by the end of November. Once submitted, it could be several months before the administrative amendments are made in the Title V Permit. The plant did receive verbal notice form the DNREC that the plant is no longer subject to Del. Reg. 1146. EG0904 MR & VS Arc Progress: The Plant has awarded the bids for the arc flash Flash Analysis relay and breaker work to reduce arc flash exposure levels. The total work could last as long as twelve weeks putting the work out to the first of next year. Schedule: There are three separate tasks; relay work, replacement of breakers and the modifications of several breakers. Completion of all of these tasks should by March 2010. EG1001 VanSant Mark IV Progress: The project is in the bid evaluation process. Due to Controls Upgrade the number of bids and options provided by the various vendors it is a somewhat tedious process. It is expected that a recommendation will be made to Pace Global and the COD by the middle of November in time for inclusion on the COD council meeting agenda for late November. Schedule: Engineering, design and procurement to follow Dover Monthly PGAM Report October 2009 - Final 35

with installation and testing of system in addition to operational testing of the system in May 2010. McKee Run Plant Progress: Task statement and work scope is being developed Paving for distribution in late 2009. The start date for the actual work is being delayed in part because of the COD water line project that is currently in the planning/implementation stage which will require tearing up part of the plant roadways EG1002 during the new water line installation phase. Schedule: Working with the City of Dover to combine this work with other COD paving project work in time for a Spring 2010 completion once the COD water line project at McKee Run has been completed. Miscellaneous Progress: This project is for the unexpected needs that may Capital Equipment occur during a budget year that were unexpected due to EG1003 Replacements equipment failure for example. Schedule: The funding is in place and, to date, items requiring replacement include the cooling water pump motor at VanSant. McKee Run Progress: The bids are due on November 13th for fire Warehouse & protection system for the turbine and the warehouse. EG1004 Administration Schedule: Work is projected to be completed in early 2010. Building Fire Protection Computerized Progress: The bid advertisement was been placed in the Maintenance newspapers in October and is running for three weeks. A pre- Management System bid meeting will be held after which bids will be submitted EG1005 sometime thereafter. Schedule: This project should be completed by early 2010. Unit #3 Boiler Progress: Discussions have been held to finalize project scope EG Cyclone Separator with consideration of the plant craft doing the removal. 1006 Removal Schedule: The project should be completed by early 2010. Unit #2 Boiler Progress: Discussions have been held to finalize the project EG Cyclone Separator scope with consideration of the plant craft doing the removal. 1007 Removal Schedule: The project should be completed by early 2010. Unit #1 Boiler Progress: Discussions have been held to finalize the project EG Cyclone Separator scope with consideration of the plant craft doing the removal. 1008 Removal Schedule: The project should be completed by early 2010. Dover Monthly PGAM Report October 2009 - Final 36

5.1 CIP Budget Original Latest Project Budget Estimate Description Number ($ X 1000) ($ X 1000) MR Fire Protection System EG0801 50 50 Upgrades MR Pollution Remediation EG0804 3800 3267** Equipment MR & VS Arc Flash Analysis Phase EG0904 125 75* II EG1001 VanSant Mark IV Controls Upgrade 700 700 EG1002 McKee Run Plant Paving 240 240 Miscellaneous Capital Equipment EG1003 51 51 Replacements McKee Run Warehouse & EG1004 Administration Building Fire Protection 55 55 Computerized Maintenance EG 1005 Management System 85 85 Unit #3 Boiler Cyclone Separator EG 1006 Removal 51 51 Unit #2 Boiler Cyclone Separator EG 1007 Removal 36 36 Unit #1 Boiler Cyclone Separator EG 1008 Removal 36 36 * $50K removed and put into O&M budget - $41K was actual Phase I cost. The remaining $75K was put into the 2010 O&M budget **Includes latest projection for fuel usage for testing and money received for generation during testing The costs for the McKee Run Pollution Remediation Project, EG0804, for the month of October were $102,248.28. The costs to date are $2,789,442.40. Dover Monthly PGAM Report October 2009 - Final 37

6.0 General Plant Information Training Plant employees continue working on their General Physics topics during the month. The inclusion of these courses has provided opportunities for increased knowledge of plant operations, to satisfy OSHA and PJM requirements, and to build a solid foundation for cross training employees at the City of Dover generation facilities. Many of these courses are included in the Employee Qualification program that will help prepare operators for advancement within the line of progression jobs. The PJM Generation Systems Operator exam study groups continue again for the month with different study topics. The study group focuses on subjects that are covered on the exam such as Emergency procedures. The class topics have been Weather and Environmental Emergencies and Sabotage and Terrorism Emergencies. Topics discussed during the monthly safety committee meeting were reviewed by the entire staff. There was information provided on the H1N1 virus. This month’s safety topic was “Work Related Stress”. Other Events The cooling tower project has been tentatively approved. Repairs slated for the current fiscal year will be expensed out of the current O & M Budget. Subsequent years funding will come from the Capital Improvement Projects (CIP) budget. Repairs will be addressed over a three year period which provides improved reliability and efficiency to both cooling towers. The Mark IV Controls Replacement project is in the bid evaluation process. Due to the number of bids and options provided by the various vendors it is a somewhat tedious process. It is expected that a selection will be made sometime in the next several weeks. The Capital Improvement Projects (CIP) were developed by plant staff and were submitted at the end of October for the City of Dover and Pace to review. The plant’s budget is still under development and is still ongoing. The expected submittal to Pace for review will be in early November. The planned maintenance outages were completed on Units #1 & #2. The Unit 1 outage was 104.50 hours and the Unit 2 outage was 80.750 hours. The inspections went well with some recommendations for future more detailed work. During the outage plant personnel had a chance to look at the multicyclone separators to better plan for their removal. The projects are Capital Improvement Projects (CIP) for each unit in this fiscal year. The plant had also recently received official confirmation letters from DNREC which specified the NOx emission rates for Units 1, 2 and 3 and in a separate letter agreed with the plant’s request to remove the multicyclones. The multicyclone letter also provided information regarding what submittals to the DNREC will be needed that will allow for a permanent removal as well as removal from the Administrative portion Dover Monthly PGAM Report October 2009 - Final 38

of the Title V Operating Permit. The NOx emission limits for Units 1 & 2 will be 0.300 lb/mmbtu and for Unit 3 the limit will be 0.308 lb/mmbtu. These are both average rates for the 24-hour period/one calendar day. The installation of the Atomizing Air Compressor was completed along with the testing. Testing was done by putting A-3 oil burner using a start-up burner tip designed to bring the boiler up on temperature within limits not to over-fire the boiler. The boiler was brought up to temperature and pressure to switch over to the atomizing steam oil gun. This equipment allows for the plant to become independent of the natural gas supply which normally is extremely difficult to acquire during the winter mornings when the commercial and residential demand is high. This project has the potential to save approximately $250,000 a year on a firm gas contract. Testing for start-up of Units 1 & 2 will occur in November once the new start-up tips arrive. The burners on Units 1 and 2 utilize mechanical atomization of the oil for the combustion process. Four people from the Operations group at the NAES facility at Benning Road in Washington, DC recently toured the McKee Run facility on a fact finding mission. The reason for the tour is that the Benning Road plant may have to start burning #2 fuel oil. At the present time, they are burning #4 fuel oil and wanted to see how we are operating since McKee Run converted to #2 fuel oil and to find out if we had any major problems with equipment or operation, as well as understand our “Lessons Learned” from the project. Calendar of Events Date NOx Ozone Season Ends September 30, 2009 Winter Capacity Period December 1, 2009 to February 28, 2010 #1 Unit Annual Inspection October 5 to October 11, 2009 #2 Unit Annual Inspection October 12 to October 18, 2009 One Year Accident Free Target January 27, 2010 McKee Run and VanSant Title V Annual Certification Due February 1, 2010 SO2 Emissions Reconciliation Due February 28, 2010 SARA III Report March 1, 2010 Annual VanSant Black Start Test March 15, 2010 #3 Unit Annual Inspection March 9 to May 3, 2010 EIA-923 Report April 15, 2010 NOx Ozone Season Starts May 1, 2010 Fiscal Year 2009-20010 Ends June 30, 2010 IBEW Contract Expires June 30, 2010 McKee Run and VanSant Title V Semi-Annual Certification Due August 1, 2010 Dover Monthly PGAM Report October 2009 - Final 39

7.0 Summary of NAES Performance to Date Plant Performance FY 2009-2010 Measure Month Year to Date YTD FY Maximum Incentive Incentive Commercial Unavailability (CU) 0% 0% $88,611 $88,611 Safety 0 0 $16,614 $16,614 Environmental 0 0 $16,614 $16,614 Capacity Tests Summer Winter Summer Winter Completed Unit 1 No No Yes No $1,662 $3,323 Unit 2 No No Yes No $1,662 $3,323 Unit 3 No No Yes No $9,969 $19,938 Unit 11 No No Yes No $3,323 $6,646 Total YTD Total YTD 89.29% $138,454 $155,069 Incentive % Incentive Dover Monthly PGAM Report October 2009 - Final 40

APPENDICES I. PJM INVOICE BREAKDOWN The PJM bill is a record of all Electricity Transactions, Transmission Services, Ancillary Services and Miscellaneous fees that allow the PJM to operate. Below is a list of the line items on the PJM bill including all generator activity. PJM Bill Line Items Gen Load Net Day Ahead Energy $0.00 ($197,179.14) ($197,179.14) Realtime Energy $0.00 $5,053.63 $5,053.63 Transmission Losses Credits $0.00 $29,254.17 $29,254.17 Network Integration Transmission Service Charges $0.00 ($216,216.94) ($216,216.94) Inadvertent Interchange Charges $0.00 $1,070.13 $1,070.13 Regulation Charges $0.00 ($15,473.81) ($15,473.81) Synchronized Reserve Charges $0.00 ($9,952.81) ($9,952.81) Balancing Operating Reserves Charges $0.00 ($1,513.24) ($1,513.24) Day Ahead Operating Reserves Charges $0.00 ($6,595.64) ($6,595.64) Day-ahead Scheduling Reserve $0.00 ($117.01) ($117.01) Synchronous Condensing Charges $0.00 $0.00 $0.00 Reactive Services Charges $0.00 ($9,181.49) ($9,181.49) Meter Correction Charges $0.00 $73.45 $73.45 Day-ahead Economic Load Response Program Charges $0.00 $0.00 $0.00 Real-time Economic Load Response Program Charges $0.00 $0.00 $0.00 Balancing Operating Reserves Credits $0.00 $0.00 $0.00 Day Ahead Operating Reserves Credits $0.00 $0.00 $0.00 Locational Reliability Charges $0.00 ($1,171,334.69) ($1,171,334.69) Capacity Transfer Rights Credits $0.00 $16,801.07 $16,801.07 Capacity Resource Deficiency Credits $0.00 $6.64 $6.64 Demand Response and ILR Compliance Penalty Credits $0.00 $0.00 $0.00 RPM Auction Credits $1,032,360.76 $0.00 $1,032,360.76 Auction Revenue Rights Credits $0.00 $52,183.23 $52,183.23 Synchronized Reserve Credits $0.00 $0.00 $0.00 PJM Scheduling System Control and Dispatch Service Charges $0.00 ($3,700.50) ($3,700.50) Transmission Owner Scheduling System Control and Dispatch Service Charges $0.00 ($4,301.09) ($4,301.09) Reactive Supply and Voltage Control from Generation Sources Service Charges $0.00 ($26,574.84) ($26,574.84) Black Start Service Charges $0.00 ($1,291.98) ($1,291.98) North American Electric Reliability Corporation (NERC) Charge $0.00 ($393.64) ($393.64) Reliability First Corporation (RFC) Charges $0.00 ($503.62) ($503.62) Expansion Cost Recovery Charges $0.00 ($431.52) ($431.52) Transmission Enhancement Charges $0.00 ($5,759.60) ($5,759.60) Black Start Service Credits $5,486.77 $0.00 $5,486.77 Non-Firm Point-to-Point Transmission Service Credits $0.00 $1,106.18 $1,106.18 Generation Deactivation $0.00 $0.00 $0.00 Market Monitoring Unit (MMU) Funding $0.00 ($312.12) ($312.12) Organization of PJM States, Inc. (OPSI) Funding $0.00 ($36.50) ($36.50) FERC Annual Recovery $0.00 ($3,230.14) ($3,230.14) DPL Settlement B $0.00 $0.00 $0.00 PPA $0.00 $1,549.74 $1,549.74 $1,037,847.53 ($1,567,002.08) ($529,154.55) Dover Monthly PGAM Report October 2009 - Final 41

II. LOAD, ALL IN ENERGY AND ALL IN COST OF SERVICE TABLE Budget Load Actual Load Budget AIE Actual AIE Actual YTD AIE Budget AICS Actual AICS Actual YTD AICS (MWh) (MWh) ($/MWh) ($/MWh) ($/MWh) ($/MWh) ($/MWh) ($/MWh) Jul 81,189 71,704 $93.76 $93.11 $93.11 $99.69 $102.69 $102.69 Aug 82,798 78,462 $94.09 $88.18 $90.53 $101.24 $93.72 $98.00 Sep 67,000 60,040 $93.03 $90.91 $90.64 $99.53 $97.30 $97.80 Oct 61,170 56,994 $89.63 $85.82 $89.61 $98.32 $94.14 $97.02 Nov 58,037 $89.30 $98.74 Dec 59,534 $89.46 $99.70 Jan 64,805 $92.14 $100.84 Feb 63,547 $91.38 $97.04 Mar 58,753 $90.80 $99.03 Apr 56,824 $92.10 $101.53 May 62,655 $91.96 $99.69 Jun 72,496 $94.17 $105.37 Dover Monthly PGAM Report October 2009 - Final 42

III. GLOSSARY All In Unit Energy Cost ("AIE") accounts for the wholesale energy costs excluding capacity obligations, capacity credits for Dover-owned generation, generation revenues, generating plant costs, the black start ancillary services credit for the Van Sant plant, and revenues associated with the sale of emission allowances. The AIE includes the costs from settling the hedged or forward transactions; the energy bought on the ISO (Independent System Operator or PJM) day-ahead to cover the open position (un-hedged); load following costs associated with balancing the actual load in the ISO real-time market; energy management service related fees; the ISO transmission charges and credits to load serving entities; the ISO ancillary services charges such as generation regulation, spinning reserve, and reactive power; and the ISO administrative charges and cost of service recovery fees. All In Cost of Service ("AICS") accounts for the net cost of wholesale power to the City of Dover Electric Utility. The AICS starts with the AIE and adds the costs or credits from capacity obligations, capacity credits for Dover-owned generation, generation revenues, generating plant costs, the black start ancillary services credit for the Van Sant plant, and revenues associated with the sale of emission allowances. Black Start is a generating ancillary service that is the process of restoring a generating plant to service without the support of an external power supply to power auxiliary equipment needed for start up operations. Capacity UCAP Obligated Purchased is the obligation and payment by all load serving entities in PJM including Dover for the Unforced Capacity (UCAP) requirement from PJM that satisfies the PJM reserve requirements. Generation Capacity Credit: is the credit provided to generators for supply capcity to the system. The price is determined by the PJM Reliability Pricing Market auction process that includes three auctions for each capacity year. Generation Production Margin accounts for the variable margin excluding variable O&M and emissions. The Generation Production Margin is calculated by taking the PJM revenues credited to the plant including any balancing charges or credits less the fuel costs. Generation Production Margin includes both “Economic and reliability dispatch” and “Testing.” Economic and reliability dispatch equals the margin achieved when Dover’s generating plants are dispatched by PJM for either economic dispatch (the system energy price is greater than the Dover bid price) or reliability dispatch whereby PJM pays the generating cost of the plants for the hours the plant is run to support the system. Generation Testing equals the Generation Production Margin associated with testing. This is usually expected to be a negative margin because the plant is potentially being dispatched / run when energy prices do not cover its costs. Non-Production Revenue equals the credits from PJM to Dover for Generation Capacity Credit, the Black Start Revenue and the sales by Dover of Emission Allowances. Dover Monthly PGAM Report October 2009 - Final 43