Attachment

ATTACHMENT #1 Utility Committee Meeting of 01/08/2007 A RESOLUTION PROPOSING THE INCLUSION OF AN AREA WITHIN THE LIMITS OF THE CITY OF DOVER AND CALLING FOR A SPECIAL ELECTION TO BE HELD IN THE SAID AREA. WHEREAS, the Charter of the City of Dover authorizes Council to extend the boundaries of the said City after a special election of the qualified voters and real estate owners of the territory proposed to be annexed, and WHEREAS, the Mayor and Council of the City of Dover deem it in the best interest of the City of Dover to include properties located at 1044 and 1050 South State Street, which is contiguous to the present City limits, into the limits of the City of Dover and within a zoning classification as recommended by the City of Dover Planning Commission. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL MET: 1. That a special election be held for properties located at 1044 and 1050 South State Street situated in East Dover Hundred, Kent County, State of Delaware. 2. That the election be held on the 15th day of February, 2007 commencing at the hours of 11:00 a.m. in the City Hall Annex, 15 E. Loockerman Street, Dover, Delaware, for the purpose of submitting the question of annexation of the above area to those persons entitled to vote thereon. 3. That the election be held and conducted pursuant to the provisions of the Charter of the City of Dover as amended. 4. That this resolution be published in accordance with the City of Dover Charter. ADOPTED: * S:\ClerksOffice\Attachments and Exhibits\Committee Attachments\2007\01-08-2007 UTILITY\01-08-2007 Utility Att 1 - Ref Res 1044 & 1050 South State St.wpd

ATTACHMENT #2 Utility Committee Meeting of 01/08/2007

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ATTACHMENT #3 Utility Committee Meeting of 01/08/2007 CITY OF DOVER WATER QUALITY APPLICABLE EXPENDITURES ACCOUNT # PROJECT # DESCRIPTION FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 TO DATE 417-6800-568.40-31 WS0201 Wellhead Redevelopment Program $990.00 $990.00 417-6800-568.40-31 WS0404 Wellhead Redevelopment Program $150,961.29 $150,961.29 417-6800-568.40-31 WS0505 Wellhead Redevelopment Program $143,840.15 $143,840.15 417-6800-568.40-31 WS0606 Wellhead Redevelopment Program $23,838.98 $23,838.98 Wellhead Redev. Total $990.00 $150,961.29 $143,840.15 $23,838.98 $319,630.42 (capacity and flow control) 417-6800-568.40-31 WS0301 Water System SCADA Upgrade $192,198.00 $21,294.60 $213,492.60 (flow control) 417-6800-568.40-34 WD0304 Division Street Water Main Upgrade $12,033.20 $8,498.73 $1,334,251.51 $1,354,783.44 (unlined pipe replacement) 417-6800-568.40-34 WD0306 Dead End Water Main Removal $22,391.79 $22,391.79 (improved flow control) 417-6800-568.40-34 WD0504 Water Quality Evaluation $1,660.00 $77,407.64 $79,067.64 (system analysis) 417-6800-568.40-34 WD0502 Water Quality Improvements $85,188.24 $85,188.24 (recommendation implementation) 417-6800-568.40-34 Misc. Distribution System Improvements $0.00 $100.00 $56,440.04 $20,917.96 $3,751.96 $81,209.96 (capacity, flow control, pipe replacement) 417 TOTAL $227,612.99 $180,854.62 $201,940.19 $1,456,416.09 $88,940.20 $2,155,764.09 412-6800-568.20-51 Claims since 12/2002 $1,143.31 $3,376.00 $5,586.40 $2,939.41 $939.88 $13,985.00 (damaged laundry, etc.) 412-6800-568.30-25 Flushing Advertising $504.12 $5,309.70 $2,974.44 $9,592.00 $9,873.82 $28,254.08 various estimated Flushing Labor (In-house) $19,098.00 $106,948.80 $101,856.00 $165,516.00 $124,137.27 $517,556.07 412-6800-568 estimated Flushing Supplies - Distribution $148.47 $742.10 $777.31 $234.50 $1,902.38 412-7600-576 estimated Flushing Supplies - WTP $1,177.46 $1,177.46 412-7600-576 estimated Sample Analysis Supplies $3,276.90 $3,276.90 VFDs (flow control) $0.00 412 TOTAL $20,745.43 $115,782.97 $111,158.94 $183,279.08 $135,185.47 $566,151.89 WATER QUALITY TOTAL $248,358.42 $296,637.59 $313,099.13 $1,639,695.17 $224,125.67 $2,721,915.98 Updated: 1-8-07 Public Utilities Department Page 1 of 1

CITY OF DOVER WATER QUALITY APPLICABLE EXPENDITURES OCTOBER - NOVEMBER 2006 FLUSHING OPERATION LABOR EXPENSES EMPLOYEE REGULAR HOURS OVERTIME HOURS RATE PER HOUR SHIFT DIFFERENTIAL TOTAL OVERTIME TOTAL MONTHLY PAY Rick Abbott $2,830.40 46.0 $26.54 $120.75 $1,341.59 $4,171.99 Robert Carson $2,710.40 32.0 $25.41 $69.25 $882.37 $3,592.77 Earl Hayes $3,078.40 8.0 $28.86 $73.63 $304.51 $3,382.91 Ralph McDougall $3,673.97 86.0 $34.66 $0.00 $2,980.76 $6,654.73 George O'Neal $3,078.40 14.5 $28.86 $46.75 $465.22 $3,543.62 Shawn Ridgeway $2,112.00 46.5 $19.80 $121.13 $1,041.83 $3,153.83 Lee Ridgway $2,049.60 10.0 $19.23 $53.38 $245.68 $2,295.28 Gerald Pennewell $2,710.40 32.0 $25.41 $74.38 $887.50 $3,597.90 Vic Brown $2,489.60 15.0 $23.34 $47.13 $397.23 $2,886.83 Bruce Blankenship $3,084.80 $18.00 $18.00 $3,102.80 Michael Boots $3,084.80 9.0 $28.92 $60.00 $320.28 $3,405.08 Shawn Combs $3,084.80 $56.00 $56.00 $3,140.80 Robert Daniels $2,830.40 8.0 $26.54 $40.00 $252.32 $3,082.72 James Hunter $2,830.40 9.5 $26.54 $54.00 $306.13 $3,136.53 Andrew Polasko $2,830.40 $20.00 $20.00 $2,850.40 Shawn Russum $2,667.20 8.0 $25.01 $86.00 $286.08 $2,953.28 Samuel Spangler $2,300.80 $42.00 $42.00 $2,342.80 TOTALS $47,446.77 324.5 $339.12 $982.40 $9,847.50 $57,294.27 % OF LABOR EXPENSE DIRECTLY RELATED TO FLUSHING 18.90% LABOR EXPENSE DIRECTLY RELATED TO FLUSHING $10,829.90 Updated: 1-8-07 Public Utilities Department Page 1 of 2

CITY OF DOVER WATER QUALITY APPLICABLE EXPENDITURES FLUSHING OPERATION LABOR EXPENSE ESTIMATES FLUSHING OPERATION DAYS ACTUAL LABOR EXPENSE COST PER DAY CREWS DAILY COST PER CREW EST. LABOR EXPENSE DIRECT FLUSHING LABOR EXPENSE October 22 - November 15, 2006 18 $57,294.27 $3,183.02 5 $636.60 n/a $10,829.90 July 9 - August 5, 2006 21 n/a n/a 5 $636.60 $66,843.00 $12,634.82 FY 2007 Totals 39 $124,137.27 $23,464.72 March 5 - 31, 2006 22 n/a n/a 5 $636.60 $70,026.00 $13,236.48 September 25 - October 18, 2005 20 n/a n/a 5 $636.60 $63,660.00 $12,033.17 July 5 - 16, 2005 10 n/a n/a 5 $636.60 $31,830.00 $6,016.58 FY 2006 Totals 52 $165,516.00 $31,286.23 June 19 - 20, 2005 1 n/a n/a 4 $636.60 $2,546.40 $481.33 March 4 - 16, 2005 10 n/a n/a 6 $636.60 $38,196.00 $7,219.90 November 12 - 24, 2004 9 n/a n/a 6 $636.60 $34,376.40 $6,497.91 August 9 - 17, 2004 7 n/a n/a 6 $636.60 $26,737.20 $5,053.93 FY 2005 Totals 27 $101,856.00 $19,253.06 May 20 - 27, 2004 6 n/a n/a 6 $636.60 $22,917.60 $4,331.94 March 8 - 23, 2004 12 n/a n/a 6 $636.60 $45,835.20 $8,663.88 September 22 - October 3, 2003 10 n/a n/a 6 $636.60 $38,196.00 $7,219.90 FY 2004 Totals 28 $106,948.80 $20,215.72 May 18 - 21, 2003 4 n/a n/a 6 $636.60 $15,278.40 $2,887.96 April 29 - 30, 2003 1 n/a n/a 6 $636.60 $3,819.60 $721.99 FY 2003 Totals 5 $19,098.00 $3,609.95 TOTALS 151 $517,556.07 $97,829.69 Updated: 1-8-07 Public Utilities Department Page 2 of 2

ATTACHMENT #4 Utility Committee Meeting of 01/08/2007 December 8, 2006 Dear Schoolview Homeowner: The City of Dover recently received a petition from residents of Schoolview expressing their concern for how adjacent development will impact both storm water and sanitary sewers. A number of residents also came and spoke to the Planning Commission during the public hearing of the Mainstay Suites Hotel site plan. The purpose of this letter is to address the concerns of residents and assure everyone that the City of Dover is working hard to protect the interests of our citizens. I would like to answer the main questions we have received: Will sewage from the Stover Professional Center flow into Schoolview’s sewer lines? The plans for the Stover Professional Center which include the Mainstay Suites Hotel on Lot #2 have been approved so that the sewer lines from the project will be connected to sewer line in Schoolview. Sewage will then flow to a pump station on Roberta Avenue. From there, it will be pumped to pipes in South Little Creek Road and will flow across Route 13 toward a large Kent County sewer pump station on Water Street (Pump Station #3). There are three reasons for this plan. 1. The developer of the adjacent land will pay for enlarging and modernizing the Schoolview Pump Station. This is to the benefit of Schoolview residents, and it lowers the cost to the City and ultimately its residents by having the developer modernize the pump station. 2. This plan eliminates the need for an additional pump station which would, in the long run, cost the City and ultimate our residents more to maintain over time. 3. It supports our commitment to Kent County to divert sewage from Pump Station #3. The Schoolview subdivision and any sewer connected to it is scheduled to be diverted to the Kent County sewer bypass on the east side of Dover. Will this cause sewage to back up into homes in Schoolview like it did in the 1990s? Engineering studies provided to the City have shown that once the Schoolview Pump Station is enlarged and modernized, it will be able to handle the entire project from the Stover Professional Center. The existing pipes are also large enough to handle the flow. However, it is important to note that each time a new building is considered by P.O. Box 475, Dover, DE 19903-0475 Community Excellence Through Quality Service

Schoolview Residents December 8, 2006 Page 2 Planning Commission, the sewer flow will be re-evaluated. If it is found that there is not enough capacity, then the project will not move forward unless a solution is found. The enlargement and modernization of the station Includes: 1. Making the station (which is mostly underground) twice as large; 2. upgrading pumps, making them more reliable for everyone; 3. adding a diesel powered pump that will automatically turn on if power fails (currently we must bring in a portable generator), making the station more dependable for everyone; and 4. adding a screen so that the pump station will be less visible to neighbors. Will the hotel and other projects be allowed to open before the Schoolview Pump Station enlargement and modernization are completed? No. A Certificate of Occupancy will not be issued until the improvements are done. Construction of the building and improvement of the station are likely to be constructed concurrently. Will the construction impact our private property? No. Most Schoolview residents will not even see the construction. All connections are through public rights-of-way. There is another hotel proposed for 1166 S. Bay Road. Will this sewer be handled the same way? No. The proposed hotel is going into a Kent County sewer line on Bay Road. Does sewage from the Blue Hen Corporate Center flow into Schoolview? What if they expand? It does not and will not if there are expansions to the existing buildings. However, if new buildings are proposed between the Blue Hen Corporate Center and the Schoolview subdivision, how sewer is handled will have to be evaluated. There are no current plans of which I am aware. Is there anything I can do to protect my basement from sewer backups? Sewage backing up into homes can occur anywhere in the City due to blocked sewer lines. These can be blocked from roots, collapsed pipes, grease, and other inappropriate material flushed into the system. Homes in Schoolview were built with basement floor drains that go into the sewer systems. These types of drains are

Schoolview Residents December 8, 2006 Page 3 no longer permitted in new construction due to their susceptibility to backups. Many residents in Schoolview have capped them.. We suggest you have your drain capped, too, if you have not already done so. If you are not sure if your drain has been capped, please call the City at 736-7060. We will inspect your home and provide you with a cap if necessary. Will storm water from these developments flow into Schoolview? No, The Stover Professional Center will have its own common storm water retention pond for its buildings and roads. The storm water system will have to be functioning before any new buildings are occupied. Each new building will require the storm water issue to be re-evaluated. Clear water has been seeping into my basement. Will the Stover Professional Center make it worse:? This clear water is groundwater--not any kind of sewage. The whole City has been experiencing higher groundwater levels over the past few years due to several rainy years after a long period of dry weather. What you are experiencing is occurring in many older developments that have basements. As homes age, small cracks in the foundation occur. The new developments will not have any effect—positive or negative on this situation. I hope that this letter answers all your questions and reassures you that all of us at the City of Dover are working hard to protect the interests of our citizens. Should you have any questions, please do not hesitate to contact me at 736-7005. My e-mail address is tdeprima@dover.de.us. Sincerely, Anthony J. DePrima, AICP City Manager AJD/clc c:/Tony/City Manager/Schoolview-Sewer

ATTACHMENT #5 Utility Committee Meeting of 01/08/2007 City of Dover November Monthly Report Asset, Energy and Risk Management This Report was produced by Pace Global Energy Services, 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 November 30, 2006. 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 Executive Summary ........................................................................................................ 2 Purchased Power ............................................................................................................ 3 Generation ...................................................................................................................... 4 Operations and Asset Management ................................................................................ 5 Energy Management ....................................................................................................... 9 Risk Management ......................................................................................................... 12 Appendix 1 .................................................................................................................... 16 North American Energy Services November Report.................................................. 16 Appendix 2 .................................................................................................................... 17 PJM Invoice Breakdown ............................................................................................ 17 Proprietary & Confidential 1 PACE - NAES Monthly Report (Nov. 2006) - U Jan. 8, 2007 - 5.doc

EXECUTIVE SUMMARY Generation v Budget Dover Load v 3 Year Average Load Load Cost v Budget Cost 15000 100,000 88 12000 75,000 86 MWh 9000 MWh $ /M W h 6000 50,000 84 3000 25,000 82 0 06 07 07 20 20 20 0 80 ly n ly Ju Ja Ju Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Actual Gen Budget Gen Actual Average Actual Weighted Average Budget Generation and Asset Management Net generation for the month of November credited by PJM was 4,039 MWh (stations ran out of merit for reliability purposes only to support local transmissions upgrades) compared to a budget of 3,000 MWh. Because the units ran out of merit order, a negative gross margin (or loss on generation) of $349,132 was realized. During the month of November, North American Energy Services reported that there were no lost time accidents, OSHA reportable incidents or environmental Notice of Violations. Costs attributable to the operations of the McKee Run and VanSant stations were $118,427 below a budget of $392,559 due to timing of insurance expenses and lower than budgeted overtime, an open operator position and scheduling of certain maintenance activities. For power year 2006-07, operations are $600,657 below a budget of $2,365,383 (~25% below budget). Fuel nozzles were also replaced at the Van Sant combustion turbine successfully addressing a technical issue that arose this past summer. Energy and Risk Management Wholesale load for the month of November was 58,141 MWh’s verses a three year historic load of 58,000 MWhs or 141 MWhs above the three year average. Purchased power (or hedges) accounted for 60,720 MWH’s of this volume at a cost of $4.47 million. Purchases and sales as well as other PJM related charges accounted for an additional cost of $119,160 inclusive of all load related fees. Total purchased power costs for the month of November was $4.57 million resulting in an all in cost of power with fees of $82.89/MWh or $1.11 below the targeted annual average of $84.00/MWh. Dover remains calculated to be 96% hedged on peak and 100% hedged off peak for an anticipated all in delivered cost of $83.77 for the 2006/2007 power year. Hedging has begun for the 2007-2008 power year and currently Dover is hedged 72% on peak and 68% off peak with a at market expected price of $83.41/MWh delivered to the Dover bus for the power year before any incentive fee paid to the Energy Manager. All purchases are with investment grade entities. Based on current market conditions, certain hedges have moved to be “out of the money” or possess a negative market value to Dover. Credit is not currently required to be posted by the counterparties but such position is being closely monitored by Pace Asset Management. Proprietary & Confidential 2 PACE - NAES Monthly Report (Nov. 2006) - U Jan. 8, 2007 - 5.doc

PURCHASED POWER Dover Load v 3 Year Average Load Load Cost v Budget Cost 100,000 88 75,000 86 MWh $ /M W h 50,000 84 25,000 82 0 80 Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Actual Average Actual Weighted Average Budget November Hedges or Purchased Power Counterparty Volume (MWh) Average Cost Cost to Dover ($/MWh) ($ millions) BP 18,000 72.89 1.31 Constellation 26,400 77.31 2.04 WPS 16,320 68.20 1.11 Connective (Capacity 303 5.00 1.52 Only) (equivalent cost) (equivalent cost) Total Energy Purchases 60,720 73.58 4.47 Dover Load 58,141 -- -- Balanced Sold to PJM and Load Related Fees Purchased Power (Hedges) 60,720 MWh’s @ $73.58/MWh: $4,467,826 Power sold to PJM (2,579 MWh’s) and Additional PJM Related Costs $119,160 Total Cost to Serve Load (58,141 MWh’s) $4,586,986 All in $/MWh load cost inclusive of Energy Manager Fees: $82.89/MWh Highlights • Sales of 2,579 MWh’s coupled with declining hedge pricing resulted in below budget purchases for the month of November • Generating units were not dispatch in merit order in the month due to soft prices, units ran to support transmission work only • Market pricing of fuel oil became cheaper in late November allowing the units to run on oil in lieu of gas on two occasions. Proprietary & Confidential 3 PACE - NAES Monthly Report (Nov. 2006) - U Jan. 8, 2007 - 5.doc

GENERATION Gross M argin vs Budget Generation v Budget 500 450 400 350 15000 300 250 12000 200 150 MWh 9000 100 $1000 50 6000 0 -50 Ju Au Se Oc No De Ja Fe Ma Ap Ma Ju ly gu pt to ve ce nu br ril y ne 3000 st em be r mb mb ar y ua ry rc h -100 be er er r -150 0 -200 -250 06 07 07 20 20 20 -300 ly Jan ly -350 Ju Ju -400 Budget Actual Energy Gross Margin includes capacity and ancillary services value. Actual Gen Budget Gen Month – October 2006 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 0 120.252 120.252 2.35 122.602 Starts # 0 0 8 8 1 9 Gross Generation MWh 0 0 4,392.441 4,392.441 90.662 4,483.103 Net Generation MWh 0 0 3,978.696 3,978.696 90.057 4,068.753 Total Auxiliaries MWh 29.619 29.619 674.324 733.562 26.303 759.865 Auxiliaries purchased MWh 29.619 29.619 260.579 319.817 25.698 345.515 Fuel Gas Used MMBTU N/A N/A 44,302,225 44,302,225# 342,899 44,648,124# Fuel Oil Used MMBTU N/A N/A 7,236,610 7,236,610 825,483 8,062,093 Fuel Oil Used Gallons N/A N/A 48,184 48,184 5,964 54,148 Total Fuel MMBTU N/A N/A 51,538,835 51,538,835# 1,168,382 52,710,217# Net Heat Rate BTU/KWh N/A N/A 12,945 12,945 12,974 12,946 Unit Trips # N/A N/A 0 0 0 0 Capacity Factor % 0 0 5.42% 5.42% .31% 3.21% Availability Factor % 100% 100% 100% 100% 92.41% 98.10% eFOR % 0 0 0 0 0 0 HW Boiler Gas Usage MMBTU 1,778,726 1,778,726 Pilot Gas Usage MMBTU 0 0 0 0 November Emissions and to Date Tons emitted Seasonal tons Tons in Inventory current month emitted year to date SOx 4 36 2,718 NOx 1 25 197 Highlights: • Soft market conditions driven by mild weather precluded McKee Run or Van Sant from running in merit in November and only for support of local transmission outages resulting in a $350,00 gross margin loss (fuel cost more than power) • Fuel nozzles at Van Sant replaced this month addressing operational issues that arose this past summer. Unit tested and operating as expected Proprietary & Confidential 4 PACE - NAES Monthly Report (Nov. 2006) - U Jan. 8, 2007 - 5.doc

OPERATIONS AND ASSET MANAGEMENT Unit performance for the month of November is provided below Month – October 2006 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 0 120.252 120.252 2.35 122.602 Starts # 0 0 8 8 1 9 Gross Generation MWh 0 0 4,392.441 4,392.441 90.662 4,483.103 Net Generation MWh 0 0 3,978.696 3,978.696 90.057 4,068.753 Total Auxiliaries MWh 29.619 29.619 674.324 733.562 26.303 759.865 Auxiliaries purchased MWh 29.619 29.619 260.579 319.817 25.698 345.515 Fuel Gas Used MMBTU N/A N/A 44,302,225 44,302,225# 342,899 44,648,124# Fuel Oil Used MMBTU N/A N/A 7,236,610 7,236,610 825,483 8,062,093 Fuel Oil Used Gallons N/A N/A 48,184 48,184 5,964 54,148 Total Fuel MMBTU N/A N/A 51,538,835 51,538,835# 1,168,382 52,710,217# Net Heat Rate BTU/KWh N/A N/A 12,945 12,945 12,974 12,946 Unit Trips # N/A N/A 0 0 0 0 Capacity Factor % 0 0 5.42% 5.42% .31% 3.21% Availability Factor % 100% 100% 100% 100% 92.41% 98.10% eFOR % 0 0 0 0 0 0 HW Boiler Gas Usage MMBTU 1,778,726 1,778,726 Pilot Gas Usage MMBTU 0 0 0 0 # Note: Does not include HWB or Pilot Gas Unit Trips/Outages During the month of November, Unit 3 at the McKee Run Facility was self dispatched on November 13th, 14th, 15 th, 20 th, 21st, 22nd, 28 th and the 29 th to support the City of Dover Electric Department while their line crews worked on upgrades to the 69KV electrical distribution system. The line outage work will continue in December and possibly into January 2007. Also during the month of November, Unit 11 at VanSant Generating Facility was put into a scheduled five day maintenance outage in order to change out the fuel nozzles that had recently been purchased from General Electric. The work was completed two days early and upon completion of the work, the unit was started up and put on line to verify proper operation of the unit. The unit was tested when operating on natural gas and on the number two fuel oil. In both instances, particularly during the oil test, the high exhaust temperature spreads present with the old fuel nozzles in place, were no longer present with the replacement nozzles. Exhaust temperature spreads are now in an acceptable range. Inspection of the removed nozzles found oxidation and pitting on the fuels tips which will require repairs and flow testing. The plant is currently evaluating options on these repairs. Other Events Proprietary & Confidential 5 PACE - NAES Monthly Report (Nov. 2006) - U Jan. 8, 2007 - 5.doc

Operation of the units to support the City of Dover’s 69KV line outages with scheduled dates in November and December has begun. During the line outages in November, Unit 3 was put on line to support the Dover Load and for voltage support in various sections of the city. During the December time frame, the McKee Run generating units will undergo emission testing as required by the McKee Run Title V Operating Permits. The test schedule has been approved by DNREC and emission testing on Units 1, 2 & 3 will begin during the week of December 11. When Units 1, 2 and 3 are operated in the December time period, the units will also be required to perform capacity tests as required by PJM for the winter season and the requested exemption would not apply. In November, the plant provided DNREC with additional information and an expected completion schedule for the API 653 external inspection of the #1 fuel oil tank, per their request. We continue to work on getting information to DNREC in order to provide them with enough information to approve a two year variance on an internal inspection of the tank. We are also proceeding with cleaning of the #2 fuel oil tank that is now empty so that it can be assessed for either use as a holding tank for the remaining fuel in the #1 fuel tank or to take the tank completely out of service. Power Year to Date Performance is provided below: Fiscal Year to Date 7/1/06-6/30/07 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 95.600 109.900 294.939 500.439 107.120 607.559 Starts # 5 3 19 27 31 58 Gross Generation MWh 730.918 888.336 15,477.372 17,096.626 3,377.692 20,474.318 Net Generation MWh 680.836 833.451 14,164.740 15,679.027 3,357.616 19,036.643 Total Auxiliaries MWh 180.647 185.450 2,493.874 2,919.208 121,581 3,085.376 Auxiliaries purchased MWh 130.565 130.565 1,181.242 1,501.609 101.505 1,647.701 Fuel Gas Used MMBTU 10,899,000 11,683,728 151,396,490 173,979,218# 42,000,242 215,979,461# Fuel Oil Used MMBTU 0 0 19,109,646 19,109,646 2,116,044 22,051,174 Fuel Oil Used Gallons 0 0 126,432 126,432 21,083 147,515 Total Fuel MMBTU 10,899,000 11,683,728 170,506,137 193,088,865# 43,773,387 238,030,635# Net Heat Rate BTU/KWh 16,008 14,018 12,037 12,315 13,385 12,504 Unit Trips # 4 1 1 6 7 13 Capacity Factor % 1.09% 1.34% 3.78% 3.14% 2.34% 2.96% Availability Factor % 95.95% 97.21% 99.07% 97.41% 98.51% 97.68% eFOR % 1.90% 5.96% 0.93% 1.68% 0% 1.31% HW Boiler Gas Usage MMBTU 7,482,248 7,482,248 Pilot Gas Usage MMBTU 403.015 403.015 806.030 806.030 # Note: Does not include HWB or Pilot Gas Environmental, Health and Safety There were no Notice of Violations or opacity deviations during the month. There was one environmental deviation that occurred on November 29 when the combustion turbine operated to test the new fuel nozzles. The deviation occurred when the actual hourly water-to-fuel injection rate of Proprietary & Confidential 6 PACE - NAES Monthly Report (Nov. 2006) - U Jan. 8, 2007 - 5.doc

6.24, did not meet the required hourly water-to-fuel injection rate of 6.26, as required by our Title V Operating Permit for the VanSant Generating Facility. The root cause of the deviation has not yet been determined and is still under investigation. Emissions Allowances For the month of November 2 tons of SOx and 1 ton of NOx were emitted. Emissions verse banked allowances are cited below; Tons emitted Tons emitted year to Tons in Inventory current month date SOx 4 36 2,718 NOx 1 25 197 Current market pricing for allowances are $485/ton for SOx and $675/ton for NOx Safety During the month of November, there was one minor injury report. The minor injury occurred when an employee twisted his ankle on uneven pavement just outside the maintenance shop. The injury did not require medical attention and therefore does not require reporting under OSHA guidelines. The area has been identified with bright yellow paint to alert other employees to the potential tripping hazard. The station operations worked 5,454 hours without an OSHA reportable incident or lost time accident. There have been 574 days since the last OSHA reportable incident or lost time accident (April 5, 2005) Generation Financial Performance Per the table below, the McKee and VanSant station experienced a net gross margin loss of $349,133 on energy sales for the month of November due to the fact the units ran out of merit (reliability reasons) to support transmission related work performed by the City’s electric distribution department. Summary of Generation Sales and Fuel Purchases Transaction Volumes Revenue/Cost PJM Invoice for Power Sold 4,039 MWH’s sold $146,858* Fuel and Transport 60,486 MMBtu consumed ($495,991) Net Generation Revenue 4,039 MWh’s ($349,133) * Excludes Black Start revenue shown in November estimates, such revenue is included below Plus Other Revenue Black Start: $5,000 Less Net Generation Revenue ($349,133) Realized margin for November ($344,133) Proprietary & Confidential 7 PACE - NAES Monthly Report (Nov. 2006) - U Jan. 8, 2007 - 5.doc

Operating Costs Operating Costs for the month of November were $247,132 (budget $392,559) or better than budget by $118,427 due to timing of insurance costs and lower than expected labor costs and scheduling of certain maintenance activities. A breakdown of operating costs for November and year to date are provided below: Financial – Current Month Month – November 2006 Actual Budget Variance Personnel 218,061 255,465 37,404 Administrative 30,342 52,119 21,777 EH & S 2,286 2,000 (286) Maintenance Expense 18,601 46,050 27,449 Operations Expense 10,912 36,925 26,013 Total $274,132 $392,559 $118,427 Financial – Fiscal Year to Date Number of Months - 5 Actual Budget Variance Personnel 1,100,052 1,282,733 182,681 Administrative 431,587 472,830 41,243 EH & S 8,828 36,500 27,672 Maintenance Expense 163,890 283,250 119,360 Operations Expense 60,369 290,070 229,701 Total $1,764,726 $2,365,383 $600,657 Year to date, Operations is below budget by almost 25% primarily due to lower than budgeted run times. Proprietary & Confidential 8 PACE - NAES Monthly Report (Nov. 2006) - U Jan. 8, 2007 - 5.doc

ENERGY MANAGEMENT Purchased Power and Volumes and Pricing Purchased power for the month of November is summarized below. This power serves to hedge or protect Dover from the volatility of the wholesale power markets. Counterparty Volume (MWh) Average Cost Cost to Dover ($/MWh) ($ millions) BP 18,000 72.89 1.31 Constellation 26,400 77.31 2.04 WPS 16,320 68.20 1.11 Connective (Capacity 303 5.00 1.52 Only) (equivalent cost) (equivalent cost) Total Energy Purchases 60,720 73.58 4.47 Total volume of power delivered to the Dover bus was 58,141 MWh’s allowing Dover to sell 2,579 MWh’s to the PJM market for the month of November. Summary of Dover Load Costs Purchased Power (Hedges) 60,720 MWh’s @ $73.58/MWh: $4,467,826 Power sold to PJM (2,579 MWh’s) and Additional PJM Related Costs1 $119,160 Total Cost to Serve Load (58,141 MWh’s) $4,586,986 All in $/MWh load cost inclusive of Energy Manager Fees $82.89/MWh Energy Manager Fees: $2.76 Fee + $1.24 Incentive = $4.00/MWh 1 Includes transmission charges, reserve charges, etc. See Appendix 2 for details. Proprietary & Confidential 9 PACE - NAES Monthly Report (Nov. 2006) - U Jan. 8, 2007 - 5.doc

Purchased Commodity Gas Volumes and Pricing Mild weather and lower loads in PJM yielded lower on and off-peak market prices which did not warrant running of either the McKee Run or Van Sant generators except for reliability purposes which they did on November 13th , 14th, 15th , 17th , 20th , 21st , 23rd , 28th and 29th.. Units ran on oil on the 28th and 29th. Date Volume (Dth) Price ($/Dth) Total Commodity Cost ($) 11/10 4,000 8.40 33,600 11/10 7,500 8.40 63,000 11/14 4,900 8.50 41,650 11/14 1,600 8.70 13,920 11/15 4,000 8.01 32,040 11/17 3,000 8.35 25,050 11/17 1,600 8.50 13,600 11/17 4,900 8.35 40,915 11/20 3,000 8.50 25,500 11/20 2,500 8.31 20,775 11/21 3,000 8.01 24,030 11/23 1,000 8.40 8,400 11/27 3,000 8.01 24,030 11/27 3,500 8.01 28,035 Total Cost 47,500 8.31 $394,545 Gas was purchased to maintain the fuel oil inventories at McKee Run and VanSant at approximately 140 degrees. A firm delivery of natural gas is required to maintain this temperature. This firm delivery base load gas supply has been purchased from the Hess Corporation. The Details of this deal are as follows: Firm Gas Supply Price Per dth Total Cost 50 dth/day $7.55 $11,330 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 prior period adjustments as follows: ESNG FT Demand Charge $4,342 TransCo FT Demand Charge $3,192 Total Purchases $7,534 Proprietary & Confidential 10 PACE - NAES Monthly Report (Nov. 2006) - U Jan. 8, 2007 - 5.doc

Other Gas Purchases Due to the units being run for reliability, gas was purchased from the pipeline. Pace Global Asset Management made every effort possible to minimize the cash out exposure of being long on the pipeline. Below are the imbalances and demand charges from Eastern Shore Pipeline. Imbalance (dth) Estimated $/dth Estimated Total Cost (194) $7.36 ($1,428) Transport Volume Estimated $/dth Estimated Total Cost Firm 1,500 $0.017 ($25.50) IT 47,500 $0.5868 ($27,873) Purchased Commodity Fuel Oil Summary While no fuel oil was purchased during the month November, No. 6 fuel oil did become less expensive then natural gas resulting in the following burns: Beginning Inventory: Burns Cost Cost 1,789,817 gallons (gallons) ($/gal and $/MMBtu) ($’s) 11/28 12,560 1.17 / 7.80 $14,465 11/29 35,399 1.17 / 7.80 $41,417 Total 47,959 1.17 / 7.80 $56,112 Ending Inventory 1,741858 gallons Proprietary & Confidential 11 PACE - NAES Monthly Report (Nov. 2006) - U Jan. 8, 2007 - 5.doc

RISK MANAGEMENT 2006 - 2007 Power Year Hedge Position As of December 5, estimated power consumption for Power Year 2006-2007 was hedged at 96% on peak and 100% off-peak. Hedge volumes are based on the three year historical load profile of Dover at the Dover bus prior to any distribution losses to the retail meter. As shown below at these hedge levels an all in price to Dover is estimated at $83.77/MWh for the 2006/2007 power year. The 10 day value at risk (with an adverse market movement in commodity and load following) could increase this target number to $85.40/MWh. Pace Global Asset Management continue to strive to lower these estimated costs through efficient dispatch of the generating assets. Price Date Forward Hedge % Power Year 2006-07 12/05/2006 COB Peak 96% Off Peak 100% At Market At Market + Risk* Energy Cost $72.02 $72.15 Incentive Non-Energy Items LSE Capacity $0.01 $0.01 Load Following $3.50 $5.00 FRC Margin $0.00 $0.00 $3.51 $5.01 Pass-Through Items Transmission $2.24 $2.24 Ancillary $2.00 $2.00 Losses $0.00 $0.00 $4.24 $4.24 Add Pace Fees $2.76 $2.76 Total Cost $82.53 $84.16 Add Incentive $1.24 $1.24 Current Expected $83.77 $85.40 * Includes estimate of 10-Day VaR & LF Risk Includes actual through October 31, 2006 Proprietary & Confidential 12 PACE - NAES Monthly Report (Nov. 2006) - U Jan. 8, 2007 - 5.doc

2007 - 2008 Power Year Hedge Position For power year 2007-2008, the estimated power consumption was hedged 72%% on peak and 68% off- peak. Hedge volumes are based on the three year historical load profile at the Dover bus prior to any distribution losses to the retail meter. As shown below at these hedge levels an all in price to Dover is estimated at $83.41/MWh before any incentive fee. Incentive fee will be estimated once the benchmark cost of supply is established for the 2007-2008 power year. The 10 day value at risk (with an adverse market movement in commodity and load following) could increase this target number to $86.32/MWh. Pace Global Asset Management continue to strive to lower these estimated costs through efficient dispatch of the generating assets. Price Date Forward Hedge % Power Year 2007-08 12/05/2006 COB Peak 72% Off Peak 68% At Market At Market + Risk* Energy Cost $72.90 $74.31 Incentive Non-Energy Items LSE Capacity $0.01 $0.01 Load Following $3.50 $5.00 FRC Margin $0.00 $0.00 $3.51 $5.01 Pass-Through Items Transmission $2.24 $2.24 Ancillary $2.00 $2.00 Losses $0.00 $0.00 $4.24 $4.24 Add Pace Fees $2.76 $2.76 Total Cost $83.41 $86.32 Add Incentive $0.0TBDTtt0 $0.00 Current Expected $83.41 $86.32 * Includes estimate of 10-Day VaR & LF Risk Proprietary & Confidential 13 PACE - NAES Monthly Report (Nov. 2006) - U Jan. 8, 2007 - 5.doc

Credit and Counterparty Position Pace Global Asset Management continues to monitor the in the money or out of the money position with each of the power purchases Dover has transacted for to reduce it risk profile to its load obligations. Below are summaries or the power purchases made by Dover, their corresponding credit position, term, volumes and pricing. Dover: Counterparty Credit Risk Date: December 5, 2006 10-day Credit Risk ($000) - 97.5% Confidence Level With Offsets Without Offsets Credit Counterparty Tenor Credit Comment Mark-to- Low Price High Price Line Mark-to- Low Price High Price Line Rating (months) Limit Market Outcome Outcome Availability Market Outcome Outcome Availability BP Energy AA- 1 $20,000 Moody's Credit Rating A1 ($1,736) ($4,135) $662 $20,000 $2,457 $1,513 $3,792 $17,543 Conectiv BBB- 1 $10,000 Moody's Credit Rating Baa3 ($150) ($682) $381 $10,000 $9 $0 $381 $9,991 Constellation AA- 1 $15,000 Moody's Credit Rating A1 ($1,662) ($2,686) ($638) $15,000 $15 $0 $146 $14,985 Sempra Energy AA 1 $20,000 Moody's Credit Rating TBD ($188) ($509) $133 $20,000 $345 $190 $504 $19,655 Trading WPS AA- 1 $15,000 Moody's Credit Rating A1 ($791) ($1,860) $278 $15,000 $252 $79 $776 $14,748 2006-2007 power year transactions are cited below: Buy/Sel Start Hedged ID Counterparty Timeblock Quality Trade Date End Date Volume Allocation l Date Price 2 BP Energy On Peak 5x16 Firm 6/22/2006 Buy 7/1/2006 6/30/2007 25 MW per hour $90.25 7 BP Energy Off Peak 5x8+2x24 Firm 6/22/2006 Buy 7/1/2006 6/30/2007 25 MW per hour $57.70 1 Conectiv On Peak 5x16 Firm 6/22/2006 Buy 7/1/2006 9/30/2006 25 MW per hour $95.00 6 Conectiv Off Peak 5x8+2x24 Firm 6/22/2006 Buy 7/1/2006 9/30/2006 25 MW per hour $56.00 3 Constellation On Peak 5x16 Firm 6/27/2006 Buy 7/1/2006 6/30/2007 50 MW per hour $88.50 4 Constellation On Peak 5x16 Firm 6/27/2006 Buy 7/1/2006 8/31/2006 30 MW per hour $90.50 8 Constellation Off Peak 5x8+2x24 Firm 6/27/2006 Buy 7/1/2006 6/30/2007 25 MW per hour $57.75 9 Constellation Off Peak 5x8+2x24 Firm 6/27/2006 Buy 7/1/2006 8/31/2006 25 MW per hour $56.65 5 WPS On Peak 5x16 Firm 7/12/2006 Buy 10/1/2006 6/30/2007 20 MW per hour $84.71 10 WPS Off Peak 5x8+2x24 Firm 7/12/2006 Buy 10/1/2006 6/30/2007 25 MW per hour $56.65 Proprietary & Confidential 14 PACE - NAES Monthly Report (Nov. 2006) - U Jan. 8, 2007 - 5.doc

Power year 2007-2008 transactions are cited below: Buy/Sel Start Hedged ID Counterparty Timeblock Quality Trade Date End Date Volume Allocation l Date Price 11 BP Energy On Peak 5x16 Firm 10/13/2006 Buy 7/1/2007 9/30/2007 35 MW per hour $72.65 12 BP Energy On Peak 5x16 Firm 10/13/2006 Buy 10/1/2007 11/30/2007 20 MW per hour $72.65 13 BP Energy Off Peak 5x8+2x24 Firm 10/13/2006 Buy 7/1/2007 11/30/2007 25 MW per hour $72.65 14 BP Energy On Peak 5x16 Firm 10/16/2006 Buy 7/1/2007 6/30/2008 30 MW per hour $75.65 15 BP Energy Off Peak 5x8+2x24 Firm 10/16/2006 Buy 7/1/2007 6/30/2008 20 MW per hour $75.65 16 Conectiv On Peak 5x16 Firm 10/18/2006 Buy 7/1/2007 8/31/2007 20 MW per hour $112.75 18 Conectiv On Peak 5x16 Firm 10/19/2006 Buy 1/1/2008 2/29/2008 40 MW per hour $100.50 17 Conectiv Off Peak 5x8+2x24 Firm 10/18/2006 Buy 7/1/2007 8/31/2007 15 MW per hour $63.25 19 Conectiv Off Peak 5x8+2x24 Firm 10/19/2006 Buy 1/1/2008 2/29/2008 30 MW per hour $65.25 21 Sempra Energy Trading On Peak 5x16 Firm 10/20/2006 Buy 12/1/2007 12/31/2007 20 MW per hour $69.95 23 Sempra Energy Trading On Peak 5x16 Firm 10/20/2006 Buy 3/1/2008 3/31/2008 10 MW per hour $70.10 25 Sempra Energy Trading On Peak 5x16 Firm 10/20/2006 Buy 4/1/2008 4/30/2008 10 MW per hour $58.35 34 Sempra Energy Trading On Peak 5x16 Firm 10/31/2006 Buy 7/1/2007 12/31/2007 10 MW per hour $85.40 20 Sempra Energy Trading Off Peak 5x8+2x24 Firm 10/20/2006 Buy 9/1/2007 9/30/2007 10 MW per hour $46.15 22 Sempra Energy Trading Off Peak 5x8+2x24 Firm 10/20/2006 Buy 12/1/2007 12/31/2007 25 MW per hour $69.95 24 Sempra Energy Trading Off Peak 5x8+2x24 Firm 10/20/2006 Buy 3/1/2008 3/31/2008 20 MW per hour $70.10 26 Sempra Energy Trading Off Peak 5x8+2x24 Firm 10/20/2006 Buy 4/1/2008 4/30/2008 20 MW per hour $58.35 27 WPS On Peak 5x16 Firm 10/25/2006 Buy 12/1/2007 12/31/2007 20 MW per hour $85.50 28 WPS On Peak 5x16 Firm 10/25/2006 Buy 1/1/2008 2/29/2008 10 MW per hour $101.00 29 WPS On Peak 5x16 Firm 10/26/2006 Buy 7/1/2007 8/31/2007 20 MW per hour $112.00 30 WPS On Peak 5x16 Firm 10/26/2006 Buy 9/1/2007 9/30/2007 30 MW per hour $77.00 32 WPS On Peak 5x16 Firm 10/27/2006 Buy 10/1/2007 11/30/2007 20 MW per hour $75.00 33 WPS Off Peak 5x8+2x24 Firm 10/27/2006 Buy 7/1/2007 6/30/2008 10 MW per hour $53.30 Proprietary & Confidential 15 PACE - NAES Monthly Report (Nov. 2006) - U Jan. 8, 2007 - 5.doc

APPENDIX 1 NORTH AMERICAN ENERGY SERVICES NOVEMBER REPORT Proprietary & Confidential 16 PACE - NAES Monthly Report (Nov. 2006) - U Jan. 8, 2007 - 5.doc

APPENDIX 2 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. Generation Load Total Due to the Settlement of Transmission Rate Case ER05-515: Pepco/ Dpl the city is entitled to an estimated refund of $512,640 to be spread over 12 months beginning in June -06. The credit comes through on the PJM bill as a reduction in the rate charged by DPL for Network transmission service. Pace will track this credit to ensure the proper refund is received by the city. The savings by month is as follows: June-06: $91,577.42 July-06: $94,630.00 Aug-06: $94,630.00 Sept-06 $91,577.42 Oct-06 $94,630.00 Nov-06 $94,630.00 (being researched, appears to be an over refund) Note: There will be many various prior period adjustments that will flow through on every invoice. These adjustments are for the most part small. However, unless the city has made an agreement these prior periods adjustment should be billed back to Duke. Proprietary & Confidential 17 PACE - NAES Monthly Report (Nov. 2006) - U Jan. 8, 2007 - 5.doc