Light Board Adds Amendments to Substation Article
Final additions to Article 2 allows for talks with NSTAR, caps bonding authority to $53.7M.
The Belmont Light Board dotted the 'i's' and crossed the 't's' as it added wording to the measure going before Special Town Meeting tomorrow, Wednesday, Feb. 8, that will authorize the sale of more than $50 million in municipal bonds to create a new electrical substation.
The Light Board – made up of the three-member Board of Selectmen – approved Monday night, Feb. 6, an amendment to Article 2 to allow the Selectmen to negotiate with utility-giant NSTAR on its offer to continue working with the town's independent electric company as supplier to the current 13.8 kilovolt system.
The design, construction and installation of an electrical substation will be determined by the Light Board "after due consideration of all options including but not limited to options available from NStar Electric company concerning voltage level and design, which the Board of Selectmen acting as the Municipal Light Board determines to be in the best interest of the Town of Belmont" reads the new language.
The NSTAR proposal – which was proposed to the Belmont Municipal Light Department just after Christmas and became public knowledge last week – comes after four years of debate in which the Department has long-championed an alternative 115 kV system that will allow the town to end its direct association with the electrical company that supplies electricity and gas throughout New England.
A change from 13.8 kV to 115 kV also allows the end of a NSTAR transmission fee that BMLD ratepayers currently pay.
According to Ashley Brown, the chairman of the Municipal Light Department Advisory Board, NSTAR has yet to respond to the Board's counter offer on service and necessary infrastructure that would make it viable with the 115 kV system.
Last week, one party in the substation discussions noted that NSTAR's offer would need to be "in the $45 million range" to be competative with the more up-to-date 115 kV system.
The additional language was proposed last Wednesday by the Warrant Committee – the financial watchdog for the Town Meeting – as a condition to its support of the Article when it is presented at the Special Town Meeting.
An intital vote on Article 2 was postponed in January as the Light Board sought more time for the Warrant and Capital Budget committees to review the proposal.
The Warrant Committee feels that the Light Board will have leverage in any negotiation with NSTAR to "strike a better deal" for residents if Town Meeting approves the Article by a two-thirds vote, said Chairwoman Elizabeth Allison.
In addition, the Board last night capped at $53.7 million the amount the Town Treasurer Floyd Carman will be allowed to authorize in short- and long-term bonds to purchase the property on Flanders Road and build the electrical substation.
Waverly Watchdog
12:00 am on Wednesday, February 8, 2012
It's time the Belmont ratepayers were the primary concern, not the Selectmen's schemes to extract indirect PILOT payments from the non-profits in town, via the increased commercial electric rates and the increased Return on Plant that the substation wiould allow.
Belmont is already paying over $2,000,000 per year more for electricity than NSTAR customers would be for the same usage. That will increase to about $6,000,000 per year, if this Warrant Article is approved.
And, furthermore, the BMLD is not worth anything like the price the town is asking.
In fact, the Belmont ratepayers would be better off if the BMLD were sold to NSTAR for $1.
Do the right thing for the BMLD customers... the voters you supposedly represent... and get rid of the BMLD to NSTAR who can run it competantly and cost effectively.
Vote Warrant Article 2 down.