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Burlington Electric Commission

Regular Meeting

Burlington, VT · July 23, 2025

AgendaPacketMinutes

Minutes

MINUTES OF REGULAR MEETING BURLINGTON ELECTRIC COMMISSION Wednesday, July 23, 2025 The regular meeting of the Burlington Electric Commission was convened at 5:02 pm on Wednesday, July 23, 2025, at Burlington Electric Department, 585 Pine Street, Burlington, Vermont, and on Microsoft Teams. Attendance  Channel 17 was present to record this meeting.  Commissioners Lara Bonn, Michelle Hobbs, Scott Moody, Andy Vota, and Bethany Whitaker were present.  Staff members Elena Alexander, Paul Alexander, Mike Kanarick, Darren Springer, and Emily Stebbins-Wheelock were present at 585 Pine St.  Staff members James Gibbons and Amber Widmayer were present via Microsoft Teams.  Public members Nick Persampieri, Ashley Adams, Leendert Huisman, Peter MacAusland, Tate Agnew, Steve Goodkind, and Kim Horning-Mavey were present at 585 Pine St.  Public member Pike Porter was present via Microsoft Teams. Agenda Commissioner Whitaker made a motion to add item #9, Sheffield Wind Contract Extension – Discussion and Vote, to the agenda. Commissioner Vota seconded the motion. Vote: 5 ayes 0 nays. Election of Officers  Commissioner Moody made a motion to elect Lara Bonn as Commission Chair; Commissioner Whitaker seconded the motion. Vote: 4 ayes 0 nays.  Commissioner Whitaker made a motion to elect Andy Vota as Commission Vice Chair; Commissioner Moody seconded the motion. Vote: 4 ayes 0 nays.  Commissioner Vota made a motion to elect Elena Alexander as Commission Clerk; Commissioner Moody seconded the motion. Vote: 5 ayes 0 nays. Meeting Minutes Commissioner Moody made a motion to approve the minutes of the June 11, 2025, Commission Meeting; Commissioner Hobbs seconded the motion. Vote: 5 ayes 0 nays. Public Forum Pike Porter expressed appreciation for Burlington Electric Department's Strategic Direction document, commending its focus on low-income customers. However, he stressed the importance of acknowledging the 2019 climate emergency resolution committing Burlington to achieve net-zero 1 greenhouse gas emissions by 2030 across all sectors. Porter argued that net-zero references in BED documents need to be revised to align with this resolution. Porter opposed the inclusion of the District Energy System (DES) in the Strategic Direction, citing concerns that it could increase greenhouse gas emissions and consumer costs, believing that funds could be better spent on community solar initiatives for those unable to install solar panels. Porter advocated for the removal of the DES from the document. While Porter supports BED's directive to seek customer input, he argued that BED has not fully realized this goal despite years of advocacy. Porter applauded the idea of creating educational tools and a website for customers to evaluate heat pumps, electric vehicles, and electri ication technologies, although he questioned if those tools are currently available. Additionally, Porter called for the development of a similar tool for Commissioners and the public that compares costs and emissions of various power sources, speci ically evaluating how the McNeil facility compares to other grid sources. Overall, Porter urged BED to better align with the city’s climate goals, improve community engagement, and enhance transparency regarding energy costs and emissions. Nick Persampieri, a resident of Ward 3, expressed signi icant concerns regarding recent legislation signed by the Connecticut governor that may hinder BED’s ability to sell renewable energy credits (RECs) from the McNeil plant in the Connecticut Class 1 market. Persampieri highlighted that McNeil's inancial viability relies heavily on these REC sales, which typically generate between $6 million to $8 million annually, with Burlington Electric receiving approximately half of that revenue. He pointed out that the plant is already facing inancial losses, and potential changes in legislation could exacerbate the situation. Persampieri referenced General Manager Springer's memo from July 2025 that suggests BED might need to undergo a proposal process through the Connecticut Department of Energy and Environmental Protection to continue selling RECs, raising questions about the future of these sales. He voiced his opposition to pursuing long-term commitments for selling power or RECs from McNeil and advocated for considering the closure of McNeil. He also raised concerns about negotiations related to a potential buyout of the plant’ other joint owners, which could lead BED to bear the full inancial burden of the plant's losses. Persampieri criticized the lack of transparency regarding Burlington Electric's DES project, suggesting it might further entrench the plant’s operations and losses. He stressed the need for increased public disclosure on both the buyout negotiations and the DES project to allow citizens to engage in these critical discussions. Persampieri concluded by urging a reevaluation of BED’s strategic goals aimed at achieving net-zero energy by 2025. Persampieri advocated for a strategy that focuses on reducing overall greenhouse gas emissions, given that the wood-burning power plant is a signi icant source of carbon dioxide emissions within the state. He emphasized the importance of public discourse on these matters for more informed decision-making, particularly regarding environmental impacts. 2 Ashley Adams expressed concern about BED’s direction, particularly regarding the continued operation of the McNeil plant. Adams cited the plant's signi icant contribution to climate change and environmental degradation. Adams voiced her disappointment with the Commission's support for McNeil, deeming it disgraceful and not serving the public good. Adams argued that investing in the plant, which is Vermont's highest carbon emitter, exacerbates the climate emergency and compromises efforts to protect habitats and biodiversity. Adams criticized BED for maintaining misleading claims on its website about McNeil's reduction of greenhouse gas emissions, labeling such assertions as scienti ically inaccurate. Adams strongly opposes the DES project, which she believes would increase greenhouse gas emissions and entrench Burlington in reliance on dirty energy. She re lected on the City Council's 2019 call for signi icant climate action and cited losses incurred by ratepayers due to inaction and mismanagement, including a million-dollar loss from improper paperwork ilings. Additionally, Adams addressed the need to confront anticipated losses of RECs and dispel myths surrounding McNeil's role in ensuring reliability or keeping rates low. Adams asserted that the plant's costs far exceed those of cleaner alternatives available in the grid. Adams stated that it should not be the responsibility of ratepayers to subsidize forestry industries at such a high environmental cost. Adams urged the Commission to act in their iduciary duty by retiring the McNeil plant and advocated for a fair transition for its workers while prioritizing climate action and public health. She called for immediate measures that re lect a commitment to sustainability and the well-being of Burlington's residents. Peter MacAusland asked several questions regarding communication and accountability within Burlington. He inquired if Commissioners are expected to acknowledge correspondence from residents, to which the answer was af irmative. MacAusland referenced a personal email he sent to Commissioner Moody, apologizing for his behavior during a previous Council meeting and mentioning his queries about Quanti ied Ventures, a potential funding source for the DES. MacAusland noted that he has attempted to contact Quanti ied Ventures multiple times and visited their of ice in Montpelier, seeking information on who serves as Burlington's spokesperson. He emphasized the importance of receiving acknowledgment for correspondence, especially when dealing with signi icant proposals, such as a $49 million project mentioned in July 2024 by Michael Ahern of Evergreen Energy. MacAusland challenged the notion that inancing from Quanti ied Ventures is unlikely for energy-related projects, citing a lack of formal communication or partnership despite prior exchanges about low-interest inancing opportunities through the EPA's Greenhouse Gas Reduction Fund. MacAusland also mentioned potential increases in DES project costs, estimating the proposal could be approaching $60 million, urging the need for transparency and communication with the city council regarding inancial implications. Steve Goodkind, a retired Burlington public works director and city engineer, shared his perspective on the DES project. Goodkind, a member of the Stop Vermont Biomass organization, emphasized the 3 need for clarity regarding the project, which was initially perceived as urgent when a resolution was passed twenty months ago. Goodkind believes that the context surrounding the resolution has changed, leading to a mischaracterization of the project as an emergency. He asserted that the resolution, while containing potential positive aspects, was negotiated under undue pressure. Goodkind raised concerns about comparing environmental hazards, likening it to debating which of two unsafe bridges is worse. He argued that both the McNeil plant's CO2 emissions and vehicle emissions are harmful, and downplaying one over the other is unproductive. Goodkind noted that, as of December 2, the McNeil plant is the largest stationary CO2 producer in Vermont, suggesting that arguing over relative harm is misguided. He called for a calm evaluation of the project, free from the emergency narrative that has shaped prior discussions. Kim Horning-Mavey expressed gratitude for BED’s efforts made to improve Burlington's building operations and their transition to more ef icient, less polluting systems, particularly heat pumps. Horning-Mavey addressed the health impacts associated with burning wood, which has been her primary area of study for the past four years. Drawing on research from the American Lung Association and medical connections, Horning-Mavey asserted the extreme toxicity of wood fuel, speci ically its emissions of PM2.5, a critical air pollutant regulated by the EPA. Horning-Mavey noted that PM2.5 is extremely small and poses signi icant health risks, contributing to respiratory issues like asthma and COPD, and is linked to emergencies in local healthcare facilities. Horning-Mavey stated that despite the use of advanced electrostatic precipitators at McNeil, the facility still emits over ive tons of PM2.5, affecting nearby neighborhoods. Horning-Mavey referenced research from Harvard indicating that PM2.5 exposure correlates with heart issues, cancer, mood disorders, and dementia, particularly affecting vulnerable populations such as unborn children, seniors, and those living in impoverished or marginalized communities. Horning-Mavey stated that Vermont ranks ifth nationally for asthma prevalence, with certain demographics, including low-income individuals, the LBGTQ community, and people of color, experiencing higher rates of asthma. Horning-Mavey stated that wood burning releases more harmful pollutants than coal, with studies suggesting that rising wood combustion is leading to increased mortality rates. Horning-Mavey cited a New York Times article discussing research that indicates 10 to 25 percent of lung cancer cases are now found in non-smokers exposed to air pollution, highlighting the signi icant health risks posed by air quality. Horning-Mavey urged a transition away from burning fuels for electricity generation, particularly given the ongoing climate crisis exacerbating air pollution and public health issues. She also noted a potential positive development in solar energy, mentioning that a friend in the solar industry shared insights about projected reductions in solar panel costs due to oversupply. Horning-Mavey believes that this, alongside the incentive for transitioning to solar and heat pump technology, presents an opportunity for signi icant improvement in public health and environmental outcomes. Commissioners Corner 4 Commissioner Whitaker requested updates regarding District Energy. General Manager Springer indicated that, although City Council approval was granted in November for the District Energy initiative, progress was delayed due to proposed changes to a recently approved carbon fee. This led to a pause in discussions initiated by the UVM Medical Center and extended into early 2024. A transition in the mayoral of ice delayed matters further as the new administration’s priorities took time to assess. Throughout this time, the focus remained on inalizing a land use Memorandum of Understanding with the UVM Medical Center, which wrapped up in February 2025. Due to limited capacity and competing priorities, discussions on District Energy, along with various other studies and projects (including battery storage and wood chip dryer engineering), were sidelined. General Manager Springer expressed the hope that meaningful discussions and updates on District Energy would resume in the coming months. General Manager Springer responded to a query regarding comparisons between ISO New England’s greenhouse gas emissions and those of the McNeil facility. While some argue that the ISO- NE grid energy mix has lower emissions, this perspective narrowly considers only stack emissions without considering upstream methane leakage associated with natural gas, which comprises more than half of the ISO-ISO energy mix. Conversely, the lifecycle bene its of biomass, such as carbon cycling from certain wood sources, are often dismissed, despite studies indicating a more favorable carbon pro ile for sustainably harvested wood compared to fossil fuels. General Manager Springer highlighted the importance of a lifecycle emissions perspective rather than a solely stack emissions approach. Additionally, he noted that all renewables are generally more expensive than the ISO-NE grid mix; while economics should be considered, they should be considered for all potential resources, not solely for wood resources. FY25 May Financials Ms. Stebbins-Wheelock shared several inancial updates before discussing the results for May 2025.  The BED accounting team is in the process of closing June with a preliminary report on iscal year 2025 expected in September. As of June 30, the operating cash position stands at $8.5 million, which is $1.3 million under budget. Additionally, preparations are underway for the year-end audit, with auditors starting their ieldwork in September.  Regarding the re inancing of the 2014A revenue bonds, the Vermont Bond Bank is set to price the issuance next week, with a closing date on August 7.  The Department is inalizing a iling of miscellaneous service fees for the Public Utility Commission and plans to submit it by week’s end.  The Department has negotiated terms for a new credit card processor; these changes will be implemented coincident with the new customer information system and customer portal next spring. A 3% fee on credit card payments will replace the previous lat fee of $3.50 and the ACH/e-check fee will decrease from $3.50 to $1 per transaction. This revised structure is expected to be more bene icial for customers, particularly low-volume users, addressing concerns surrounding how lat fees impact their payments. May 2025 results, net income was $340,000 against a budget of $1.56 million, creating a variance of $1.2 million, predominantly due to a drop in REC revenues. While there was a favorable variance in 5 customer sales of $76,000, other revenues fell short due to lower-than-expected EEU reimbursements. REC revenues were $1.37 million less than budget due to both timing (some RECs were delivered in April instead of May) and lower wind production in calendar year 2024. Year-to-date, REC revenues are down by a net of $190,000, with all REC transactions concluded. McNeil REC sales for the iscal year were favorable to budget by $425,000, wind REC sales were less than budget by $471,000 and hydro and solar REC sales were less than budget by $96,000 and $47,000, respectively due to lower production in prior periods. Net power supply expense was favorable compared to budget by $67,000, with higher fuel costs offset by lower transmission and purchased power expenses. Other operating and maintenance expenses were favorable by $146,000 compared to budget. Year-to-date net income is $4.5 million compared to a budgeted $3.9 million, a positive variance of $542,000. Commissioner Vota asked for a projection of year-end net income. Ms. Stebbins-Wheelock responded that the Department’s most recent forecast projected a net income of $3.5 million by iscal year-end, which would be slightly better than the budgeted net income of $3.4 million. Commissioner Vota asked about the favorable variance in the Winooski property tax. Ms. Stebbins- Wheelock responded that the FY25 budget was set prior to the completion of Winooski’s recent reappraisal, which resulted in a lower property value for Winooski One based on the plant’s historical revenues and expenses. Capital expenditures for May year-to-date were $7.5 million against a budget of $11.2 million, largely due to delays in IT projects and vehicle replacements. The operating cash position at the end of May was $9.5 million compared to a budgeted amount of $11 million, largely due to additional REC purchases. The debt service coverage is reported at 4.91, with an adjusted ratio of 1.26, and days cash on hand was144 days, including the $10 million line of credit. General Manager’s Update In response to Nick Persampieri's inquiry regarding Connecticut RECs, General Manager Springer con irmed that wood energy remains eligible for Class 1 RECs under the recently passed Connecticut legislation. However, this eligibility is contingent on quali ied biomass plants being awarded a contract in an upcoming RFP process through the Connecticut Department of Energy and Environmental Protection, expected to begin in September. Importantly, McNeil is eligible to participate in the RFP, and BED will be focused on maintaining McNeil’s CT Class 1 REC eligibility to mitigate adverse impacts on revenue in the fourth quarter of the current iscal year and beyond. Additionally, McNeil RECs are still eligible for other New England REC markets, including Vermont, albeit with lower REC values. Connecticut's action to reduce its renewable portfolio standard due to affordability challenges is concerning from a climate perspective, especially considering the recent changes to federal incentives for renewable energy. BED is actively engaged in scenario and inancial contingency planning related to the uncertainty created by the new Connecticut law. 6 The Department anticipates that at the August Transportation, Utilities & Energy Committee meeting the SYNAPSE team will be ready to present modeling of energy ef iciency costs and on-site electri ication for three building types using anonymized, real-world data from Burlington. The Department has been using a mobile battery and its Defeat the Peak initiative to reduce peak demand this summer, with a successful peak event in June. Ita Meno, the 2025 Jim Reardon Award winner, selected the Richard Kemp Center as this year’s irst Defeat the Peak partner. BED will continue to use and test the battery through September. The battery has a nominal output of 1.2 megawatts and can provide up to 240 kW in an hour. BED is reviewing updated bids from its RFP for a larger 5-megawatt battery. Recent federal legislation poses signi icant challenges to climate action and strategic electri ication in Burlington, especially the removal of incentives for solar and wind energy, while fossil fuel incentives persist. This could limit renewable energy access in New England, particularly with the administration’s efforts to shut down offshore wind projects and the negative impact of tariff discussions on Vermont’s relationship with Canada. The Net Zero Roadmap emphasizes the thermal and transportation sectors, but the recent end of various incentive programs, including EV and heat pump incentives—means that BED will be the only source of inancial support for Burlington customers, particularly for EVs. The Department cannot ill this gap, but is evaluating what it can do to support customers doing this period to make EVs more affordable. Regarding the 2025 rate case, there is a possibility that FY26 rates may be reduced from the proposed 4.5% to approximately 4.3% to adjust for one-time consulting fees that were inadvertently included in the 2024 rate case, which could be bene icial to customers. BED is engaged in process with the Department and PUC regarding both rate cases. Lastly, the recent federal legislation did not eliminate the funding source for BED’s $4.85 million Charging & Fueling Infrastructure grant. The Department has engaged with the Vermont Attorney General's Of ice and other grantees to discuss potential legal actions to release these funds. Without securing this funding, EV charging investments will continue, albeit at a limited scale. 2025–2026 Strategic Direction General Manager Springer introduced the 2025-2026 Strategic Direction, stating that this year’s draft re lects an updated yet stable strategic planning process. BED aims to create a concise, one- page strategic document re lecting the contributions of all organization members, encouraging input from the entire team for potential updates. Many of the updates this year have been suggested by the sustainability and equity team. The community engagement section includes new language regarding capacity-building and energy literacy. There is also new language about collaboration with frontline communities to ensure equitable access to services, leveraging partnerships to extend outreach beyond traditional methods. There is proposed new language calling for the renewal of the Vermont Energy Ef iciency Modernization Act which allows for effective use of ef iciency funds to reduce fossil fuel use, which 7 provides an opportunity to support improved incentives for EVs and heat pumps that may help address the loss of federal incentives. Another proposed update expands district energy systems to include multiple energy sources, such as networked geothermal systems. The objective regarding charging infrastructure has been revised to emphasize prioritizing under-resourced areas and obtaining community feedback for charger placements. Finally, there are proposed edits in the budget section regarding focusing on affordability and support for vulnerable communities. Commissioner Vota asked what role the Commission plays in this document. General Manager Springer responded that the Commission does not have a formal role, but that the Department views the Strategic Direction as a communication tool to articulate its plans and goals and welcomes the Commission’s feedback. Commissioner Hobbs made a motion to adopt the 2025–2026 Strategic Direction as presented. Commissioner Whitaker seconded the motion. Vote: 5 ayes 0 nays. Sheffield Wind Contract Extension James Gibbons provided an overview of BED’s existing renewable energy contracts. Mr. Gibbons explained that three agreements will expire relatively soon: the Firstlight hydro contract on December 31, 2025, the Shef ield/Vermont Wind contract in October 2026, and the Hancock, ME Wind contract in December 2026. The Firstlight contract provides 35% of the energy output from a hydro plant in Connecticut along with the associated RECs, the Shef ield contract provides 40% of the plant’s output , and the Hancock contract provides 26% of the plant’s output. Each contract provides approximately 30 GWh of energy to BED per year, and together account for approximately 30% of the BED’s energy supply. BED is actively exploring options for contract renewals and replacements, including negotiating terms of a potential contract extension with Shef ield, which has provided favorable pricing and responsiveness to-date. The Department proposed that the Commission delegate authority to the General Manager to negotiate a contract extension with Shef ield for up to ive years, provided that the contract rate is at or below current levels. This proposal would enable the Department to act quickly to execute a renewal, as City Council approval is not required for contracts less than 5 years in duration. Commissioner Vota inquired about current energy market prices and trends. General Manager Springer responded that the head of ISO-New England recently advised that utilities should expect increasing energy contract prices across-the-board. The Department also gains value from being a 100% renewable energy provider. The Department anticipates bringing replacement proposals for the First Light and Hancock contracts to the Commission in the coming months. Commissioner Moody made a motion that delegates the Burlington Electric Department General 8 Manager the discretional authority to negotiate and enter into an extension of the Sheffield Wind contract expiring 10/18/2026 for an additional term of up to five (5) years, provided that the extension price is at or below the current price and other contract conditions are appropriate. Commissioner Vota seconded the motion. Vote: 4 ayes 0 nays. (Commissioner Whitaker was absent for the vote) Commissioners’ Check-In The Commission thanked Commissioner Michelle Hobbs for her time of service and expressed well wishes in future endeavors. Adjourn Commissioner Hobbs made a motion to adjourn; the motion was seconded by Commissioner Moody; Commission vote; 4 ayes 0 nays. The meeting of the Burlington Electric Commission adjourned at 6:28p.m. Microsoft Teams transcript used to create minutes drafted by Elena Alexander, Board Clerk, and edited by Emily Stebbins-Wheelock, CFO and Manager of Strategy & Innovation. Attest: _______________________________________________ Elena Alexander, Board Clerk 9

Agenda

BURLINGTON BOARD OF ELECTRIC COMMISSIONERS 585 Pine Street Burlington, Vermont 05401 To be held at Burlington Electric Department (and) Via Microsoft Teams +1 802-489-6254 Conference ID: 636 059 465# LARA BONN MICHELLE HOBBS SCOTT MOODY, CHAIR ANDY VOTA BETHANY WHITAKER, VICE CHAIR AGENDA Regular Meeting of the Board of Electric Commissioners Wednesday, July 23, 2025 – 5:00 PM 1. Agenda 2. Election of Officers 3. Minutes of the June 11, 2025 Meeting 4. Public Forum 5. Commissioners’ Corner (Discussion) 6. Financial review (Discussion) – Emily Stebbins-Wheelock 7. GM Update 8. 2025-2026 Strategic Direction (Discussion and Vote) – GM Springer 9. Sheffield Wind Contract Extension – discussion and vote – James Gibbons 10. Commissioners’ Check-In Attest: _________________________________________ Elena Alexander, Board Clerk If anyone from the public wishes to speak during the public forum portion of the Commission Meeting and/or wishes to be present for the Meeting of the Board of Electric Commission via Microsoft Teams, please email ealexander@burlingtonelectric.com to receive a link to the meeting. Note: Members of the public may speak during the Public Forum, or when recognized by the Chair during consideration of a specific agenda item.

Packet

BURLINGTON BOARD OF ELECTRIC COMMISSIONERS 585 Pine Street Burlington, Vermont 05401 To be held at Burlington Electric Department (and) Via Microsoft Teams +1 802-489-6254 Conference ID: 636 059 465# LARA BONN MICHELLE HOBBS SCOTT MOODY, CHAIR ANDY VOTA BETHANY WHITAKER, VICE CHAIR AGENDA Regular Meeting of the Board of Electric Commissioners Wednesday, July 23, 2025 – 5:00 PM 1. Agenda 2. Election of Officers 3. Minutes of the June 11, 2025 Meeting 4. Public Forum 5. Commissioners’ Corner (Discussion) 6. Financial review (Discussion) – Emily Stebbins-Wheelock 7. GM Update 8. 2025-2026 Strategic Direction (Discussion and Vote) – GM Springer 9. Sheffield Wind Contract Extension – discussion and vote – James Gibbons 10. Commissioners’ Check-In Attest: _________________________________________ Elena Alexander, Board Clerk If anyone from the public wishes to speak during the public forum portion of the Commission Meeting and/or wishes to be present for the Meeting of the Board of Electric Commission via Microsoft Teams, please email ealexander@burlingtonelectric.com to receive a link to the meeting. Note: Members of the public may speak during the Public Forum, or when recognized by the Chair during consideration of a specific agenda item. DRAFT MINUTES OF REGULAR MEETING BURLINGTON ELECTRIC COMMISSION Wednesday, June 11, 2025 The regular meeting of the Burlington Electric Commission was convened at 6:02 pm on Wednesday, June 11, 2025, at Burlington Electric Department, 585 Pine Street, Burlington, Vermont, and on Microsoft Teams. Attendance  Channel 17 was present to record this meeting.  Commissioners Lara Bonn, Michelle Hobbs, Scott Moody, Andy Vota, and Bethany Whitaker were present.  Staff members Elena Alexander, Paul Alexander, Mike Kanarick, Paul Nadeau, Darren Springer, and Emily Stebbins-Wheelock were present at 585 Pine St.  Staff members James Gibbons, Munir Kasti, and Amber Widmayer were present via Microsoft Teams.  Public Member Alan Bjerke and bond counsel Thomas Melloni and Kathy Zhou were present at 585 Pine St. Agenda No changes to the agenda. Meeting Minutes Commissioner Whitaker made a motion to approve the minutes of the May 14, 2025, Commission Meeting; Commissioner Vota seconded the motion. Vote: 5 ayes 0 nays. Public Forum Alan Bjerke addressed the issue of BED’s miscellaneous service fees applied to rental properties in Burlington, focusing on the $30 service charge for transferring accounts between tenants, which he views as burdensome. He highlighted that due to advancements such as smart meters, this fee is outdated and excessive, given that the work does not involve creating a new account but only a temporary transfer. In 2022, Mr. Bjerke raised concerns about this fee, connecting it to the broader problem of high rental housing costs in the area. Mr. Bjerke stated that out of 17 electric utilities in Vermont, only three impose such a charge, and the assessed fee for BED is nearly 50% higher than the average. Following BED’s analysis of costs associated with this work in March 2024, it was determined that the fee should be reduced to $6, indicating that landlords are currently being overcharged by 400%. As the City Council approved 1 the tariff changes nearly 14 months ago, Mr. Bjerke seeks to understand the delay in the tariff being filed. Mr. Bierke urged the Commission to facilitate movement on this issue. General Manager Springer stated that the Department has been working for several months to discuss the proper format for this filing with the Department of Public Service (DPS), and that the BED team was able to obtain a meeting with the DPS late last week. Standardizing tariffs across different utilities requires coordination and alignment on various fronts, not just the single tariff issue of concern. That being said, the BED team now has the clarity necessary to move forward and with the tariff filing. Commissioners requested a progress update be added to the July agenda. Commissioners Corner No items discussed. Deforest Road electric service and street lighting upgrades Mike Kanarick and Paul Nadeau addressed the upcoming electric service and street lighting improvements planned for Deforest Road in Ward 6, expected to begin in early July. They highlighted the importance of these upgrades for safety and reliability, including the retirement of outdated underground cable and its replacement with a conduit containing new wiring. Along with upgrading electrical infrastructure, the project will entail enhancements to street lighting to align with the Illuminating Engineering Society of North America (IES) standards, which often require brighter illumination than older lights. In other street lighting projects, residents have expressed concerns about the brightness of new lights and their proximity to homes. To facilitate community engagement, BED will be reaching out to Deforest Road residents with a letter detailing the project's intentions and inviting feedback. The team also plans to conduct two walkthroughs to allow the community to discuss their concerns directly with the project team. City Councilors representing Ward 6 have also shown interest in participating. Mr. Kanarick stated that BED had been contacted by a resident concerned about walking safety on Deforest Road in dark conditions and reiterated BED’s commitment to address such issues. Mr. Nadeau further explained that alongside lighting upgrades, sections of wire in the green spaces adjoining the road would also be replaced to prevent future failures. The project will also replace traditional street light fixtures with decorative Renaissance poles tailored to fit the aesthetic character of Deforest Road. Mr. Kanarick emphasized that engaging with the community is essential and that adjustments to light placement could be considered if feasible. However, he noted that new lighting often involves 2 adding more poles to comply with updated standards, especially in lower traffic areas like Deforest Road, potentially leading to fewer complaints due to the less imposing height of decorative poles. A preliminary design for the lighting has already been mapped out and will be shared with residents before the project meetings. BED prioritizes funding for upgrades in major thoroughfares while aiming to limit disruptions in residential neighborhoods. FY25 April Financials Emily Stebbins-Wheelock reported that in April 2025 the Department recorded a net income of $1.4 million, exceeding the budgeted net loss of $1.2 million, largely due to the delivery of Renewable Energy Certificates (RECs) that had been delayed from February. The month’s revenue from sales to customers fell short by $159,000, with other revenues, particularly EEU reimbursements, down by $150,000. However, power supply/REC revenues saw a positive variance of approximately $2.8 million. On the expense side, net power supply expenses surpassed the budget by $1.6 million, predominantly due to the purchase of $1.5 million in replacement Connecticut 1 RECs to meet contractual obligations following the data entry error that caused McNeil RECs from Q3 2024 not to be qualified. While wind production from Georgia Mountain and Vermont Wind exceeded expectations, McNeil’s output was diminished due to the annual maintenance outage. Non-power supply operating and maintenance costs were favorable to budget by $606,000. FEMA reimbursements related to flooding damage at Winooski One contributed to a significant overall variance of about $1.1 million in other income and deductions, with two tranches received in April. Year-to-date, the net income stands at $4.1 million, outperforming the budgeted $2.4 million by $1.8 million. Ms. Stebbins-Wheelock stated that the Department’s forecast for June 30 anticipates a modest improvement in net income as compared to budget and that a negative variance of about $180,000 for REC revenues is expected in May due to reduced production in 2024. Capital spending as of April 2025 reached 59% of the annual budget, totaling just under $7 million against a budget of $10.5 million, with $1.2 million in ordered but outstanding transformers contributing to the variance. Operating cash stands at nearly $9 million, slightly below the budgeted $9.9 million due to the unanticipated REC purchases. The Department’s debt service coverage ratio was 5.47, the adjusted debt service coverage ratio was 1.44, and days cash on hand were 137 including the $10 million line of credit. Refinancing of 2014 Series A Revenue Bonds Ms. Stebbins-Wheelock was joined by bond counsel Thomas Melloni and Kathy Zhou of Paul Frank & Collins to discuss the proposed refinancing of BED’s 2014 A revenue bonds, which were issued to 3 fund the purchase of the Winooski One hydro facility. The anticipated refunding is approximately $6.5 million, which will cover outstanding principal as of July 1, 2025, issuance costs, and a small amount of interest due between July 1 and August when the bonds are issued. The Commission is asked to approve Supplemental Resolution Number 18, which would amend the original General Bond Resolution to authorize this new issuance of revenue bonds via the Vermont Bond Bank. The refinancing would replace higher-interest bonds with new ones at lower interest rates, ultimately saving costs for ratepayers. Given the modest projected savings, a financial analysis from PFM suggested that pursuing this refinancing through the Bond Bank would be more cost-effective than an independent issuance, given the added efficiency and reduced issuance costs—estimated at approximately $35,000. The Bond Bank’s higher credit rating is also anticipated to yield better interest rates. The process for securing this refinancing involves first obtaining approval from the Board of Electric Commissioners and then securing authorization from the City Council. If market conditions do not favor refinancing by the time of decision-making, the plan may not proceed. Conversely, if more favorable conditions arise prior to issuance, the potential savings could be enhanced. Commissioner Moody asked whether the refinancing was analogous to a homeowner refinancing a mortgage to achieve lower interest rates. Mr. Melloni responded that that was an accurate comparison. Ms. Zhou noted that the Supplemental Resolution also provides the flexibility to pursue either Bond Bank refinancing or a public offering or private issuance should the market conditions allow for better terms in the future. The specific repayment schedule will be finalized at closing by the City and BED’s designated officials. Mr. Melloni noted that responsibility for approving the Supplemental Resolution lies with the Board of Electric Commissioners but that subsequent approval by the City Council is also required as the City Council is responsible for incurring indebtedness. Commissioner Vota asked about the disposition of funds from the original 2014A issuance and how the Department funds its debt service on those bonds. Ms. Stebbins-Wheelock responded that those funds were spent in the 2014 timeframe on the acquisition of Winooski One and that the Department funds its debt service through operating funds. Mr. Melloni added that the funds from this refinancing will be placed in escrow with the bond trustee, Zions Bancorp, before being transferred to the existing bondholders to purchase back the outstanding 2014A bonds. The 2014A bonds will end and be replaced with these 2025A bonds. Mr. Melloni also noted that extended audit completion timeframe to allow a more manageable process post-refinancing. 4 Commissioner Vota made a motion to approve to adopt Supplemental Resolution 18 as presented and recommend its adoption to the Board of Finance and City Council; Commissioner Bonn seconded the motion. Vote: 5 ayes 0 nays. General Manager’s Update General Manager Springer stated that the Department plans to revamp the July Commission report to provide a concise, three- to four-page summary of key highlights, supported by a dashboard for additional data presentation. Feedback is encouraged to streamline the report effectively, transitioning from merely listing tasks to offering valuable insights. Mr. Springer is in the process of reviewing the Department’s 2025-26 Strategic Direction, the draft version of which will be presented to the Commission in July. The BED regulatory team is currently under strain due to an increased workload stemming from an unusually high number of regulatory inquiries, including as an example a recent query about the new Moduly battery pilot program. The PUC asked questions about this program, which uses modular batteries and is designed for demonstration purposes. The program does not operate on a rate-basis and is intended to showcase technology without customer compensation. General Manager Springer expressed hope for a clarifying response soon from the PUC to avoid potential delays. Mr. Springer noted a signi icant recent legislative action in Connecticut to lower that state’s renewable portfolio standards—a deviation from typical state trends—in response to affordability concerns. This change could negatively impact BED’s participation in REC markets, particularly with modi ied biomass eligibility regulations. Revenue from RECs is vital, ranging between $7 million and $9 million annually, and changes could result in signi icant losses, estimated at $3 to $4 million for iscal year 2026. During the discussion, Commissioner Vota inquired about potential alternative markets for RECs. General Manager Springer acknowledged that other options do exist but do not match the inancial value of Connecticut’s current Class 1 RECs. The Department is preparing to ile its 2025 rate case without re lecting these changes, pending further analysis of the Connecticut legislation. BED has reopened its battery storage request for proposals to obtain updated pricing and has rented a mobile battery system to mitigate summer demand peaks. On the policy front, collaboration with SYNAPSE has begun to model energy benchmarking in Burlington, focusing on ef iciency targets and cost-bene it analyses of transitioning from gas to heat pump systems. Additionally, consultants for two McNeil studies are scheduled to presentation to the Transportation, Energy & Utilities Committee on June 24, 2025. Plans for public engagement during the June 24 meeting include structured input opportunities and the use of a temporary email address to facilitate feedback. Commission Chair Moody has agreed to attend the meeting. The 2025 rate iling and the proposed revisions to the Energy Assistance Program tariff received unanimous approval from the City Council and are slated for iling with the PUC. 5 Mr. Springer noted that federal policy trends may trigger shifts in state compliance strategies, especially as discussions around fossil fuel support and offshore wind initiatives progress. Finally, Commissioner Vota highlighted that the strategic dashboard could bene it from a metric related to the year-to-date inancial forecast. Commissioners’ Check-In Commissioner Vota requested a timeline for the revised Energy Assistance Program rate iling. General Manager Springer estimated a three- to four-month process following submission to the PUC. Adjourn Commissioner Hobbs made a motion to adjourn; the motion was seconded by Commissioner Whitaker, Commission vote; 5 ayes 0 nays. The meeting of the Burlington Electric Commission adjourned at 7:21p.m. Microsoft Teams transcript used to create minutes drafted by Elena Alexander, Board Clerk and edited by Emily Stebbins-Wheelock, CFO and Manager of Strategy & Innovation. Attest: _______________________________________________ Elena Alexander, Board Clerk 6 To: Burlington Board of Electric Commissioners From: Darren Springer, General Manager Date: July 11, 2025 Subject: June 2025 Highlights of Department Activities General Manager – Darren Springer • Connecticut REC market – Based on statutory change in Connecticut, BED’s understanding is wood energy plants have to bid and be selected through a CT DEEP RFP process set to take place later this year to continue to have CT 1 eligibility. To be eligible to bid a plant needs to have had a prior contract (which McNeil has had). The BED team will be doing financial contingency planning in the event McNeil is not selected for the RFP, including REC market mitigation options, and options for efficiencies or cost reductions to address this potential issue. McNeil remains eligible for REC markets, including Vermont but also potentially Maine and New Hampshire. • BERO/Benchmarking report – BED now anticipates a presentation on the modeling from Synapse at the August TEUC meeting. • Mobile battery/Defeat the Peak – BED has had a successful effort so far with the Viridi battery relative to monthly/annual peaks, and had a successful Defeat the Peak effort as well which will result in a contribution to the Richard Kemp Center (selected by our Jim Reardon Award winner for 2025 – Ita Meno!). • Federal Legislation – With passage of the federal legislation, wind and solar and other key renewable energy incentives are being phased out aggressively, as are EV, heat pump, EV charging, and efficiency incentives. BED is analyzing options for how to support our customers in transitioning to electric transportation in light of the state EV rebate funding running out, and now federal incentives being removed by end of September. • Rate Cases – Working through related issue for FY25 and FY26 rate cases regarding removal of one-time consulting fees that were inadvertently included in cost of service for FY25. Possibility that ultimate rate for FY26 is slightly reduced from the proposed 4.5% to account for this issue. • EV Charging grant – BED is in touch with Attorney General Office to see about opportunities to join with other states efforts to unfreeze the EV charging grant. Center for Innovation – Emily Stebbins-Wheelock • Met with Dept of Public Service to chart path forward on Operating Guidelines/Miscellaneous Service Fees; preparing Miscellaneous Service Fees filing for July. • Began discussions with VT Attorney General’s Office about possible litigation to unfreeze BED’s Charging & Fueling Infrastructure grant funding. June 2025 – Department Highlights • Finalized process for Water Resources renter assistance program via credit on electric bills and sent notice to current EAP customers. Subject to City Council approval, planning to implement the credit with bills sent starting on August 5th. • Released RFP for Financial Information System on June 20th. • First Defeat the Peak event for 2025, including use of Viridi mobile battery. • Hosted a table at the City’s Juneteenth Celebration including BED’s Ford 150 Lightning and cooking hob demonstration. Directed customers to induction cooktops and electric lawn equipment incentives. Led BED staff field trip to Main Street Landing’s Wall of Respect in recognition of Juneteenth. • Joined first Charging Smart cohort, a program funded by DOE and managed by the Electrification Coalition that offers technical assistance to help local governments adopt best practices, policies, and incentives for enabling efficient EV charger expansion. Center for Safety and Risk Management – Paul Alexander Safety • Established a Controlled Access Zone (CAZ) to receive the installation of the temporary Battery Energy Storage System. The site safety plan included for qualified personnel only the requirement of a written PreJob safety briefing covering: (1) Job Hazard Review; (2) Work Procedures Review; (3) Precautions Review; (4) Energy Review (LOTO) if needed; (5) PPE review and verification. • The Generation Safety Committee approved the establishment of a Confined Space Manual at the Gas Turbine that is separate from McNeil’s program. This will allow technicians to work with System Operations and organize the relevant safety information for the Burlington Fire Department should there be a rescue of an individual in the tank room. Environmental • The quarterly calibrations with ESC Spectrum were performed to include opacity monitor audits, opacity clear stack audits, flow line leak check and replacement of any consumable parts found to be defective. • Environmental has been working with the State of VT on Pre-draft permit for the McNeil Generating Station scenarios prior to approval. One is unlocking the Electrostatic Precipitator (ESP) control software and now having the ability to trend data and print out reports. Risk Management • Called the Burlington Police Department in regard to a repeat offender who on multiple occasions has called in fake claims about either a pole on fire or a leaking transformer. This same scenario occurred just a month ago, and the BPD is reaching out to the appropriate area(s) before filing charges. • The County’s Sheriff “Return of Service” document was signed by the defendant in a small claims case which involves paying back BED funds that were used in an apprentice program as outlined in Section 8.6 of our Union (IBEW) contract. The defendant has asked for a court hearing which is the next step in this process. • Our property insurance carriers had 18 questions as a follow-up to our all-day Property tour of the McNeil Station (5/20), which McNeil staff have worked diligently in preparing responses to and forwarding backup documents via the portal. • The NPCC Self-certification Audit on regulatory standards PRC-005 and PRC-006 (Protection System and Underfrequency Load shedding (UFLS)) was completed (by Engineering) and returned by the due date of 7/27/25. We now await the anticipated first round of regulatory Q&A. Page 2 June 2025 – Department Highlights Purchasing/General Services • SCADA Office Remodel completed. Remodel the old dispatch room into the new SCADA office with room for plotter space. New workstations, carpet, paint and door for plotter space. • Replaced roof on the GT building. Replaced with EPDM membrane material made by Carlisle. We replaced 3 sections of the main roof, middle roof and lower roof where the roof hatch is located. • Put RFP out for new EV Bucket Truck to be purchased with partnership State of Vermont Volkswagen Diesel Grant. Center for Operations & Reliability – Munir Kasti Engineering, Grid Services & Operations • Completed setting new poles and reconductoring the overhead primary and neutral lines on Dunder Road. • Completed reconductoring the underground primary lines on Battery Street. • Energized a new service for City Place, including the new fire pump. • Completed FY25 annual protective relay testing for BED’s distribution equipment. • Issued work orders for overhead upgrades on Rose Street and South Prospect Street. • Prepared for implementation of new Distribution Management System (DMS) as part of the SCADA/ADMS upgrade. SAIFI & CAIDI Outage Metrics: BED’s distribution system experienced 11 outages in June 2025 (6 unscheduled and 5 scheduled). BED’s SAIFI for the Month of June was 0.003 interruptions per customer and CAIDI was 1.09 hours per interruption. BED's YTD SAIFI is 0.17 interruptions per customer and YTD CAIDI is 1.16 hours per interruption. The following figure shows BED’s historical YTD SAIFI and CAIDI: Page 3 June 2025 – Department Highlights The following figure shows BED’s historical June SAIFI and CAIDI: The following figure shows BED’s historical Unplanned Outages: Generation McNeil Generating Station Month Generation: 18,513 MWh YTD Generation: 101,275 MWh Month Capacity Factor: 51.45% Month Availability: 61.0% Hours of Operation: 444.5 hours McNeil Performed a 2-hour max capability claim audit on June 12, 2025, which was approved by ISO New England. Winooski One Hydroelectric Station Monthly Generation: 1,442.49 MWh (65.1% of average) YTD Generation: 11,732.32 MWh (65.1 % of average) Month Capacity Factor: 27.0% Annual Capacity Factor: 36.49% Month Availability: 60% due problems with Generator 1 gates This month at Winooski One there were routine maintenance, preventative maintenance, and Page 4 June 2025 – Department Highlights process improvement projects conducted. Preparation for turbine and generator overhauls are in progress. Burlington Gas Turbine Month Generation: 171.7 MWh YTD Generation: 255.29 MWh Month Capacity Factor: 1.24% Month Availability: 86.1% Hours of Operation Unit A: 15.0 hours Hours of Operation Unit B: 15.0 hours This month the GT has been successfully dispatched 3 times for a total of 171.7 MWh. Solar (Pine Street 107 kW) Month Generation: 14 MWh (-1% from previous year) YTD Generation: 50 MWh Month Capacity Factor: 18.8% Month Availability: 100% Solar (Airport 499 kW) Month Generation: 85 MWh (+7% from previous year) YTD Generation: 243 MWh Month Capacity Factor: 23.5% Month Availability: 100% Center for Customer Care & Energy Services – Mike Kanarick Energy Services UVM & UVMMC • ES is working with staff and contractors on several ongoing projects. • UVM continues to look at possible improvements to both the Trinty Campus and Athletic Campus, but no firm timelines have been established. • UVMMC continues to explore options to replace their aging chiller other the next several years. Ice storage is one of the options being studied. A site visit to the Champlain College ice storage plant is planned for July. Other Services • Decline in New Development and Energy Efficiency Activity • Over the past several months few new construction zoning applications have been submitted to DPI, indicating a decline in near term new development. High lending costs and construction costs have slowed this market. • ES continues to see a slowdown in EEU activity with smaller and medium-sized commercial customers. These customers continue to face economic headwinds where discretionary energy efficiency improvements are not a priority. As a result, BED and VGS continue to work with the Burlington 2030 District and CEDO to get the word out about our services and that we are here to help. • ES continues to: Page 5 June 2025 – Department Highlights • Work on new construction projects such as at Cambrian Rise, Burlington High School, former YMCA, City Place and Post Apartments. • Support the customer care team with a number of residential and commercial customer high bill concerns. • Support Burlington’s affordable housing organization such as at BHA Decker Towers and CVOEO/CHT’s Champlain Place. • Partner with the VGS ES team on a number of residential weatherization and heat pump projects and commercial retrofit projects. Electric Vehicles & Charging Stations • The EVSE (ChargePoint, Flo & AmpUp) dispensed a total of 36.7MWh and supported 1,897 sessions. • Approximately 36% (or 13.3MWh) of the energy sold from the entire network is attributed to the Pine St., Marketplace Garage, and Pease Lot DCFC’s. • EV and PHEV rebates to date – 1,061(of this 234 LMI rebates to date) • Customers currently participating in the new EV Charging Rate- 389 • Single-family & multifamily home EV charging stations rebates to date – 360 Heat Pump Installations to Date Total Heat Pump Installations including Multi-Family New Construction Projects & Installations in existing buildings since the September 2019 NZEC announcement – 3,000 installations (of this 204 LMI rebates to date) Customer Care • Call Answer Time (75% in 20 seconds): June 2025 69.4%, May 61.4%, April 86.1%, March 90.3%, February 89.6%, January 86.4%. June 2024 74.6%, May 69.2%, April 85.8%, March 87.7%, February 87.7%, January 86.7%. End of “busy season,” including 399 of 2,618 calls in one day (June 2). • June 2025 Stats: please see dashboard for additional metrics categories. Page 6 June 2025 – Department Highlights Complaints to DPS about Customer Care Team 6 5 # of Complaints 5 4 3 2 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 2024 2024 2024 2024 2025 2025 Calendar Year Communications and Marketing • Juneteenth: the City of Burlington celebrated Juneteenth on Saturday, June 21 from 2 to 10pm in City Hall Park and on the Church Street Marketplace. BED participated in this important celebration with energy experts and a BED Ford F-150 Lightning electric truck that was used to power a stove to prepare treats for visitors to our tent. • Lake Monsters Customer Appreciation Nights: BED partnered again with VGS in joining our Vermont Lake Monsters friends at the ballpark for games on June 18 and July 2. We engaged about energy- related issues with many customers during these two outings. • Net Zero Energy Festival – A Supercharged Day of Family Fun: please mark your calendars for Saturday, September 6, 2025 (rain or shine), from 10:00am to 2:00pm at BED. This year, we have partnered with the South End Arts and Business Association (SEABA) and will be holding the festival on the Saturday of Art Hop weekend. To further our NZE progress, we’ll have activities for people of all ages focused on reducing fossil fuel use and electrifying everything, including: renewably-powered food trucks; games and activities for children; Star 92.9’s radio personalities Mike & Mary; raffles; E- bike test rides; EV showcase; mobile bike repair unit; bike parking; BED partners providing heat pump, solar, and electric lawn care products; carshare and biking partners; BED energy experts; and more. • Full website visits for June 2025 Page 7 June 2025 – Department Highlights • Top-performing Facebook & Instagram posts Defeat the Peak & Ace McArleton’s podcast episode Page 8 To: Burlington Board of Electric Commissioners From: Darren Springer, General Manager Date: July 11, 2025 Subject: June 2025 Highlights of Department Activities General Manager – Darren Springer  Connecticut REC market – Based on statutory change in Connecticut, BED’s understanding is wood energy plants have to bid and be selected through a CT DEEP RFP process set to take place later this year to continue to have CT 1 eligibility. To be eligible to bid a plant needs to have had a prior contract (which McNeil has had). The BED team will be doing financial contingency planning in the event McNeil is not selected for the RFP, including REC market mitigation options, and options for efficiencies or cost reductions to address this potential issue. McNeil remains eligible for REC markets, including Vermont but also potentially Maine and New Hampshire.  BERO/Benchmarking report – BED now anticipates a presentation on the modeling from Synapse at the August TEUC meeting.  Mobile battery/Defeat the Peak – BED has had a successful effort so far with the Viridi battery relative to monthly/annual peaks, and had a successful Defeat the Peak effort as well which will result in a contribution to the Richard Kemp Center (selected by our Jim Reardon Award winner for 2025 – Ita Meno!).  Federal Legislation – With passage of the federal legislation, wind and solar and other key renewable energy incentives are being phased out aggressively, as are EV, heat pump, EV charging, and efficiency incentives. BED is analyzing options for how to support our customers in transitioning to electric transportation in light of the state EV rebate funding running out, and now federal incentives being removed by end of September.  Rate Cases – Working through related issue for FY25 and FY26 rate cases regarding removal of one-time consulting fees that were inadvertently included in cost of service for FY25. Possibility that ultimate rate for FY26 is slightly reduced from the proposed 4.5% to account for this issue.  EV Charging grant – BED is in touch with Attorney General Office to see about opportunities to join with other states efforts to unfreeze the EV charging grant. Center for Innovation – Emily Stebbins-Wheelock  Met with Dept of Public Service to chart path forward on Operating Guidelines/Miscellaneous Service Fees; preparing Miscellaneous Service Fees filing for July.  Began discussions with VT Attorney General’s Office about possible litigation to unfreeze BED’s Charging & Fueling Infrastructure grant funding. June 2025 – Department Highlights  Finalized process for Water Resources renter assistance program via credit on electric bills and sent notice to current EAP customers. Subject to City Council approval, planning to implement the credit with bills sent starting on August 5th.  Released RFP for Financial Information System on June 20th.  First Defeat the Peak event for 2025, including use of Viridi mobile battery.  Hosted a table at the City’s Juneteenth Celebration including BED’s Ford 150 Lightning and cooking hob demonstration. Directed customers to induction cooktops and electric lawn equipment incentives. Led BED staff field trip to Main Street Landing’s Wall of Respect in recognition of Juneteenth.  Joined first Charging Smart cohort, a program funded by DOE and managed by the Electrification Coalition that offers technical assistance to help local governments adopt best practices, policies, and incentives for enabling efficient EV charger expansion. Center for Safety and Risk Management – Paul Alexander Safety  Established a Controlled Access Zone (CAZ) to receive the installation of the temporary Battery Energy Storage System. The site safety plan included for qualified personnel only the requirement of a written PreJob safety briefing covering: (1) Job Hazard Review; (2) Work Procedures Review; (3) Precautions Review; (4) Energy Review (LOTO) if needed; (5) PPE review and verification.  The Generation Safety Committee approved the establishment of a Confined Space Manual at the Gas Turbine that is separate from McNeil’s program. This will allow technicians to work with System Operations and organize the relevant safety information for the Burlington Fire Department should there be a rescue of an individual in the tank room. Environmental  The quarterly calibrations with ESC Spectrum were performed to include opacity monitor audits, opacity clear stack audits, flow line leak check and replacement of any consumable parts found to be defective.  Environmental has been working with the State of VT on Pre-draft permit for the McNeil Generating Station scenarios prior to approval. One is unlocking the Electrostatic Precipitator (ESP) control software and now having the ability to trend data and print out reports. Risk Management  Called the Burlington Police Department in regard to a repeat offender who on multiple occasions has called in fake claims about either a pole on fire or a leaking transformer. This same scenario occurred just a month ago, and the BPD is reaching out to the appropriate area(s) before filing charges.  The County’s Sheriff “Return of Service” document was signed by the defendant in a small claims case which involves paying back BED funds that were used in an apprentice program as outlined in Section 8.6 of our Union (IBEW) contract. The defendant has asked for a court hearing which is the next step in this process.  Our property insurance carriers had 18 questions as a follow-up to our all-day Property tour of the McNeil Station (5/20), which McNeil staff have worked diligently in preparing responses to and forwarding backup documents via the portal.  The NPCC Self-certification Audit on regulatory standards PRC-005 and PRC-006 (Protection System and Underfrequency Load shedding (UFLS)) was completed (by Engineering) and returned by the due date of 7/27/25. We now await the anticipated first round of regulatory Q&A. Page 2 June 2025 – Department Highlights Purchasing/General Services  SCADA Office Remodel completed. Remodel the old dispatch room into the new SCADA office with room for plotter space. New workstations, carpet, paint and door for plotter space.  Replaced roof on the GT building. Replaced with EPDM membrane material made by Carlisle. We replaced 3 sections of the main roof, middle roof and lower roof where the roof hatch is located.  Put RFP out for new EV Bucket Truck to be purchased with partnership State of Vermont Volkswagen Diesel Grant. Center for Operations & Reliability – Munir Kasti Engineering, Grid Services & Operations  Completed setting new poles and reconductoring the overhead primary and neutral lines on Dunder Road.  Completed reconductoring the underground primary lines on Battery Street.  Energized a new service for City Place, including the new fire pump.  Completed FY25 annual protective relay testing for BED’s distribution equipment.  Issued work orders for overhead upgrades on Rose Street and South Prospect Street.  Prepared for implementation of new Distribution Management System (DMS) as part of the SCADA/ADMS upgrade. SAIFI & CAIDI Outage Metrics: BED’s distribution system experienced 11 outages in June 2025 (6 unscheduled and 5 scheduled). BED’s SAIFI for the Month of June was 0.003 interruptions per customer and CAIDI was 1.09 hours per interruption. BED's YTD SAIFI is 0.17 interruptions per customer and YTD CAIDI is 1.16 hours per interruption. The following figure shows BED’s historical YTD SAIFI and CAIDI: Page 3 June 2025 – Department Highlights The following figure shows BED’s historical June SAIFI and CAIDI: The following figure shows BED’s historical Unplanned Outages: Generation McNeil Generating Station Month Generation: 18,513 MWh YTD Generation: 101,275 MWh Month Capacity Factor: 51.45% Month Availability: 61.0% Hours of Operation: 444.5 hours McNeil Performed a 2-hour max capability claim audit on June 12, 2025, which was approved by ISO New England. Winooski One Hydroelectric Station Monthly Generation: 1,442.49 MWh (65.1% of average) YTD Generation: 11,732.32 MWh (65.1 % of average) Month Capacity Factor: 27.0% Annual Capacity Factor: 36.49% Month Availability: 60% due problems with Generator 1 gates This month at Winooski One there were routine maintenance, preventative maintenance, and Page 4 June 2025 – Department Highlights process improvement projects conducted. Preparation for turbine and generator overhauls are in progress. Burlington Gas Turbine Month Generation: 171.7 MWh YTD Generation: 255.29 MWh Month Capacity Factor: 1.24% Month Availability: 86.1% Hours of Operation Unit A: 15.0 hours Hours of Operation Unit B: 15.0 hours This month the GT has been successfully dispatched 3 times for a total of 171.7 MWh. Solar (Pine Street 107 kW) Month Generation: 14 MWh (-1% from previous year) YTD Generation: 50 MWh Month Capacity Factor: 18.8% Month Availability: 100% Solar (Airport 499 kW) Month Generation: 85 MWh (+7% from previous year) YTD Generation: 243 MWh Month Capacity Factor: 23.5% Month Availability: 100% Center for Customer Care & Energy Services – Mike Kanarick Energy Services UVM & UVMMC  ES is working with staff and contractors on several ongoing projects.  UVM continues to look at possible improvements to both the Trinty Campus and Athletic Campus, but no firm timelines have been established.  UVMMC continues to explore options to replace their aging chiller other the next several years. Ice storage is one of the options being studied. A site visit to the Champlain College ice storage plant is planned for July. Other Services  Decline in New Development and Energy Efficiency Activity  Over the past several months few new construction zoning applications have been submitted to DPI, indicating a decline in near term new development. High lending costs and construction costs have slowed this market.  ES continues to see a slowdown in EEU activity with smaller and medium-sized commercial customers. These customers continue to face economic headwinds where discretionary energy efficiency improvements are not a priority. As a result, BED and VGS continue to work with the Burlington 2030 District and CEDO to get the word out about our services and that we are here to help.  ES continues to: Page 5 June 2025 – Department Highlights  Work on new construction projects such as at Cambrian Rise, Burlington High School, former YMCA, City Place and Post Apartments.  Support the customer care team with a number of residential and commercial customer high bill concerns.  Support Burlington’s affordable housing organization such as at BHA Decker Towers and CVOEO/CHT’s Champlain Place.  Partner with the VGS ES team on a number of residential weatherization and heat pump projects and commercial retrofit projects. Electric Vehicles & Charging Stations  The EVSE (ChargePoint, Flo & AmpUp) dispensed a total of 36.7MWh and supported 1,897 sessions.  Approximately 36% (or 13.3MWh) of the energy sold from the entire network is attributed to the Pine St., Marketplace Garage, and Pease Lot DCFC’s.  EV and PHEV rebates to date – 1,061(of this 234 LMI rebates to date)  Customers currently participating in the new EV Charging Rate- 389  Single-family & multifamily home EV charging stations rebates to date – 360 Heat Pump Installations to Date Total Heat Pump Installations including Multi-Family New Construction Projects & Installations in existing buildings since the September 2019 NZEC announcement – 3,000 installations (of this 204 LMI rebates to date) Customer Care  Call Answer Time (75% in 20 seconds): June 2025 69.4%, May 61.4%, April 86.1%, March 90.3%, February 89.6%, January 86.4%. June 2024 74.6%, May 69.2%, April 85.8%, March 87.7%, February 87.7%, January 86.7%. End of “busy season,” including 399 of 2,618 calls in one day (June 2).  June 2025 Stats: please see dashboard for additional metrics categories. Page 6 June 2025 – Department Highlights Complaints to DPS about Customer Care Team 6 5 # of Complaints 5 4 3 2 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 2024 2024 2024 2024 2025 2025 Calendar Year Communications and Marketing  Juneteenth: the City of Burlington celebrated Juneteenth on Saturday, June 21 from 2 to 10pm in City Hall Park and on the Church Street Marketplace. BED participated in this important celebration with energy experts and a BED Ford F-150 Lightning electric truck that was used to power a stove to prepare treats for visitors to our tent.  Lake Monsters Customer Appreciation Nights: BED partnered again with VGS in joining our Vermont Lake Monsters friends at the ballpark for games on June 18 and July 2. We engaged about energy- related issues with many customers during these two outings.  Net Zero Energy Festival – A Supercharged Day of Family Fun: please mark your calendars for Saturday, September 6, 2025 (rain or shine), from 10:00am to 2:00pm at BED. This year, we have partnered with the South End Arts and Business Association (SEABA) and will be holding the festival on the Saturday of Art Hop weekend. To further our NZE progress, we’ll have activities for people of all ages focused on reducing fossil fuel use and electrifying everything, including: renewably-powered food trucks; games and activities for children; Star 92.9’s radio personalities Mike & Mary; raffles; E- bike test rides; EV showcase; mobile bike repair unit; bike parking; BED partners providing heat pump, solar, and electric lawn care products; carshare and biking partners; BED energy experts; and more.  Full website visits for June 2025 Page 7 June 2025 – Department Highlights  Top-performing Facebook & Instagram posts Defeat the Peak & Ace McArleton’s podcast episode Page 8 BED 2024-2025 Strategic Direction Dashboard June 2025 May 2025 April 2025 March 2025 February January 2023 Yearly 2022 Yearly 2021 Yearly 2020 Yearly 2019 Yearly Target Actuals Actuals Actuals Actuals 2025 Actuals 2025 Actuals 2024 Yearly Actual Actual Actual Actual Actual Actual Engage Customers and Community Call answer time 75% within 20 seconds 75% 69% 61% 86% 90% 90% 86% avg 81% avg 82% avg 82% avg 82% avg 81% Delinquent accounts >$500 0 248 242 246 323 287 251 avg 223 avg 168 avg 188 avg 529 avg 201 Disconnects for non-payment 0 2 31 153 10 1 1 308 224 12 0 45 Energy Assistance Program Customers (program lifetime) NA 881 871 869 862 858 852 843 234 Energy Assistance Program Customers (currently enrolled) 300 776 788 776 776 776 774 770 219 # of residential weatherization completions 10 0 1 0 0 0 0 7 11 5 5 3 11 Weatherization completions in rental properties 0 0 0 0 0 0 3 8 6 0 0 TBD # or % of homes or SF weatherized TBD TBD TBD TBD TBD TBD 0 TBD TBD TBD TBD 0 # of commercial building with improved thermal envelopes 1 0 0 0 0 0 5 6 4 5 5 0 Total annual mWh saved via the EE programs (annual goal) 4,032 1,003 934 904 877 84 61 1116 2,940 4053 3057 Total residential annual mWh saved via the EE programs (cumulative for year) 724 128 68 64 51 35 28 333 494 862 917 Total commercial sector annual mWh saved via the EE programs (cumulative for year) 3,308 875 866 840 828 49 33 783 2,447 3191 2140 % of EEU charge from LMI customers spent on EE services for LMI customers $ 297,026 $ 204,228 $ 200,971 $ 195,750 $ 186,013 $ 178,052 $ 167,552 $ 155,814 $ 504,942 $ 335,234 TBD TBD TBD (cumulative for 2024- 2026 3-year EEU performance period) # of customers enrolled in DtP mailing list TBD 826 816 NA NA NA NA 812 800 738 689 698 523 # of large customers participating in DtP 12 12 NA NA NA NA 12 12 11 # of pageviews, overall website-wide 21,052 28,406 21,747 19,047 18,341 23,653 # of unique website homepage views 4,621 5,046 4,617 4,251 3,804 4,739 Strengthen Reliability SAIFI (AVG interruptions/customer) (annual target) < 2.1 0.003 0.03 0.02 0.01 0.05 0.07 1.63 0.56 1.05 0.17 1.48 1.01 CAIDI (AVG time in hrs to restore service) (annual target) < 1.2 1.09 1.16 2.39 1.94 1.72 0.44 0.94 0.67 1.49 0.55 0.75 Distribution System Unplanned Outages (annual target) 82 6 2 6 4 5 3 69 39 61 44 90 98 McNeil Forced Outages 0 1 1 1 2 1 0 10 5 14 5 21 TBD W1H Forced Outages 0 0 0 0 1 1 0 3 2 6 9 2 TBD GT Forced Outages 0 0 1 0 0 0 1 2 9 6 2 3 TBD Invest in Our People, Processes, and Technology Avg. # of days to fill positions under recruitment 120 282 281 217 317 257 232 253 219 100 68 179 # of budgeted positions vacant 0 11 10 10 9 11 11 avg 12 avg 12 avg 9 avg 9 6 NA BED 2024-2025 Strategic Direction Dashboard June 2025 May 2025 April 2025 March 2025 February January 2023 Yearly 2022 Yearly 2021 Yearly 2020 Yearly 2019 Yearly Target Actuals Actuals Actuals Actuals 2025 Actuals 2025 Actuals 2024 Yearly Actual Actual Actual Actual Actual Actual Innovate to Reach Net Zero Energy Tier 3 Program # of residential heat pump installs 20 0 10 18 11 31 176 186 255 315 203 10 # of commercial heat pump installs 0 0 0 0 0 0 5 8 4 4 13 0 # of residential hot water heat pump installs 3 0 5 1 2 5 28 31 26 14 6 4 # of commercial hot water heat pump installs 0 0 0 0 0 0 0 0 0 0 0 0 Heat pump rebates 20 6 10 18 11 31 185 206 271 328 212 0 Heat pump hot water heater rebates 3 0 5 1 2 5 28 47 18 15 3 0 LMI heat pump rebates 4 6 0 1 0 0 35 21 43 28 6 4 Heat pump technology installs in rental properties 0 0 0 0 0 0 3 8 10 14 9 TBD LMI heat pump hot water heater rebates 4 0 1 0 0 0 2 6 1 2 0 1 EV rebates - new 9 16 11 10 6 18 125 103 53 67 14 36 EV rebates - pre-owned 1 1 3 2 2 1 23 16 18 7 8 2 See NZE LMI EV rebates 2 4 1 4 2 5 50 26 9 11 7 7 Roadmap PHEV rebates - new 3 0 2 4 3 7 44 25 27 41 10 17 Goals below PHEV rebates - preowned 2 3 1 0 0 5 8 6 12 6 5 3 LMI PHEV rebates 1 0 0 0 0 0 11 5 15 13 6 2 Public EV chargers in BTV (total) 41 ports 41 ports 41 ports 41 ports 40 ports 40 ports 40 ports 32 ports 30 ports 27 ports 27 ports 14 Public EV charger energy dispensed (kWh) 36,700 36,700 39,100 38,500 36,400 40800 355500 244,300 151,360 86,570 35,690 78,000 Home EV charging station rebates 3 5 13 8 5 18 82 72 70 32 20 12 EV charging rate customers (total) 389 382 379 364 354 351 347 246 157 40 40 28 Level 2 charger rebates 0 0 0 0 0 1 22 10 11 10 0 1 Level 1 charger rebates 0 0 0 0 0 0 0 0 - 0 1 0 E-bike rebates 36 32 39 22 1 27 169 147 152 88 36 65 E-mower rebates 31 25 10 1 0 2 109 135 159 154 95 142 E-forklift rebates 0 0 0 0 0 0 0 0 1 0 0 0 MWE of Tier 3 measures installed 4,401 1,027 1,390 1,733 1,139 1,863 26,120 22,374 22,837 23,763 35,112 3,342 % Tier 3 obligation met with program measures 100% 48% 30% 25% 20% 12% 8% 122% 117% 131% 159% 283% 31% Net Zero Energy Roadmap Goals # of solar net metering projects installed 2 0 2 2 1 1 13 32 33 29 24 33 No. of homes receiving NZE Home Roadmaps 0 0 0 0 0 0 0 - 7 10 7 Residential heat pumps for space heating (no. of homes) 2023: 8615 NA NA NA NA NA NA 2,320, 18% of goal 1,952 1,749 1,448 1,112 925 Commercial heat pumps for space heating (1000 SF floor space served) 2023: 5397 NA NA NA NA NA NA 487, 7% of goal 431 411 405 374 374 Residential heat pumps for water heating (no. of homes) 2023: 4365 NA NA NA NA NA NA 344, 4% of goal 289 243 224 208 203 Commercial heat pumps for water heating (1000 SF floor space served) 2023: 1019 NA NA NA NA NA NA 6, 0.2% of goal 0 0 0 0 - EV registrations in BTV (light-duty) 2023: 2294 NA NA NA NA NA NA 1,285, 23% of goal 829 699 549 361 296 Greenhouse gas emissions (1000 metric tons CO2) 2023: 150 NA NA NA NA NA NA 174, 55% above target 179 193 188 185 214 Fossil fuel consumption (billion BTU) 2023: 2418 NA NA NA NA NA NA 2,964, 68% above target 3,044 3,319 3,169 3,185 3,660 BED 2024-2025 Strategic Direction Dashboard June 2025 May 2025 April 2025 March 2025 February January 2023 Yearly 2022 Yearly 2021 Yearly 2020 Yearly 2019 Yearly Target Actuals Actuals Actuals Actuals 2025 Actuals 2025 Actuals 2024 Yearly Actual Actual Actual Actual Actual Actual Demand Response # of Defeat the Peak events called 1 0 0 0 0 0 2 3 3 5 3 4 Average kW savings per DtP event 413 NA NA NA NA NA 342 372 463 419.5 261 242 Manage Budget and Risks Responsibly Safety & Environmental No. of workers' compensation/accidents per month 0 0 2 2 0 0 0 7 8 16 4 8 Total Paid losses for workers’ compensation accidents (for the month) annual $21,245 $13,204 $10,248 $3,018 $5,489 $66,100 $272,353 $98,393 $ 145,102 $ 93,612 $ 165,402 $38,288 Lost Time Incident Rate (days/year) (Dec numbers reflect annual results) <= 3.5 annual N/A N/A N/A N/A N/A N/A 0.99 2.0 1.99 0.0 0.93 0.89 Lost Time Severity Rate (days/year) (Dec numbers reflect annual results) <= 71 annual N/A N/A N/A N/A N/A N/A 9.90 107.4 112.63 0.0 41.71 78.2 Lost work days per month 0 11 16 0 0 0 0 avg 10 avg 12 avg 9 0.0 45 NOx reporting levels to EPA (Quarterly) (lbs/mmbtu) <0.075 0.068 0.069 0.091 0.068 0.069 0.068 0.06 0.06 0.06 0.07 0.07 # of reported spills, waste water incidents (monthly) 0 0 0 0 0 0 0 4 2 6 4 4 Phosphorus levels to DEC in lbs (monthly/yearly total) <0.8/37 0.04/1.063 0.013/1.024 0.181/2.082 0.174/1.979 0.165/1.986 0.153/1.965 1.87 0.705 0.688 2.028 1.169 # of new power outage claims reported (monthly) 1 0 0 0 0 0 0 6 3 5 7 4 # of new auto/property/other liability claims reported (monthly) 2 1 3 3 1 1 4 24 36 27 18 27 Purchasing & Facilities # of Purchase Orders for Inventory (Target: avg for winter months) 42 41 78 67 86 72 51 738 541 636 644 593 $ value of Purchase Orders for Inv. (Target: avg dollars spent during winter) $78,000 $140,202 $325,805 $401,355 $973,263 $919,825 $142,579 $ 6,613,883 $2,481,531 $ 4,861,023 $ 3,278,620 975,531 # of stock issued for Inventory (Target: avg during winter months) 320 732 563 707 730 510 631 7,207 6,777 6,187 4,402 4,545 $ value of stock issued for Inventory (Target: avg. during winter) $ 65,000 $ 359,158 $ 134,027 $ 190,684 $ 151,857 $ 122,341 $ 66,331 $ 2,352,360 $ 1,925,781 $ 2,200,233 855,456 1,086,478 # of posters pulled from poles monthly (Target: goal to remove each month) 58 0 121 0 0 0 40 351 592 900 2,728 627 # of Spark Space and Auditorium setup/breakdowns monthly (Target: Covid impact) 3 11 16 13 19 16 15 199 207 132 88 87 Finance Debt service coverage ratio (avg of previous 12-months) 1.25 4.91 5.47 5.08 5.14 4.95 4.10 FY24 3.81 FY23 4.61 FY22 4.26 FY21 3.77 FY20 3.56 FY19 Adjusted debt service coverage ratio (avg of previous 12-months) 1.5 1.26 1.44 1.32 1.34 1.29 1.25 FY24 1.29 FY23 1.22 FY22 1.08 FY21 0.93 FY20 0.90 FY19 Days unrestricted cash on hand (incl line of credit) >90 144 137 152 156 153 146 FY24 93 FY23 120 FY22 121 FY21 120 FY20 109 FY19 Arrearages >60 days $ 558,755 $ 514,677 $ 486,445 $ 493,414 $ 484,303 $ 480,633 $ 470,940 $ 392,196 $ 408,903 $ 1,087,769 $ 749,054 Power Supply McNeil generation (MWH) (100%) per budget 18,513 13,684 552 10,132 25,714 32,680 197,044 184,798 228,981 273,355 192,696 McNeil availability factor 100% 61% 67% 2% 29% 81% 100% 66% 84% 67% 80% McNeil capacity factor per budget 51% 37% 1.5% 27% 77% 88% 45% 42.3% 52.4% 62.4% Winooski One generation (MWH) per budget 1,442 2,805 2,974 2,573 854 1,083 29,498 36,318 25,350 24,752 21,194 Winooski One availability factor 100% 60% 70% 70% 70% 90% 90% 98% 97.2% 98.3% 97% Winooski One capacity factor per budget 27% 56% 56% 47% 17% 20% 48% 56% 41.7% 37% Gas Turbine generation (MWH) NA 171.7 22.0 17.7 19.0 18.1 6.9 484 475 356 373 441 Gas Turbine availability factor 100% 86% 89% 100% 100% 100% 97% 98% 46.7% 54.5% 96% Gas Turbine capacity factor NA 1.2% 0.1% 0.1% 0.1% 0.1% 0.0% 0.1% 0.2% 0.2% 0.21% BTV solar PV production (mWh) 632 466 503 410 117 215 5,020 4,681 5,260 5,015 5,182 Cost of power supply - gross ($000) $2,760 $4,328 $3,346 $2,968 $2,629 $34,858 $30,002 $36,755 $30,285 $31,081 Cost of power supply - net ($000) $1,829 $1,559 $3,346 $2,968 $2,629 $27,984 $22,710 $27,487 $22,134 $23,388 Average cost of power supply - gross $/KWH $0.11 $0.18 $0.13 $0.11 $0.09 $0.11 $0.09 $0.11 $0.09 $0.10 Average cost of power supply - net $/KWH $0.07 $0.06 $0.13 $0.11 $0.09 $0.08 $0.07 $0.08 $0.07 $0.08 FY 2025 Financial Review May July 8, 2025 Burlington Electric Department Financial Review FY 2025 Table of Contents: ● Financial Highlights 1-2 ● Revenues and Expenses o KWH Sales – Total 3 o Cooling/Heating Degree Days 4 o KWH Sales – Residential & Commercial 5 o Net Power Supply Costs 6-11 o Operating & Maintenance Expense 12 o Labor Overhead 13 o Net Income 14 ● Capital Spending 15 - 18 ● Cash 19 FINANCIAL HIGHLIGHTS – BUDGET VS ACTUAL as of MayFY25 Full Yr CURRENT MONTH YEAR TO DATE ($000) Budget Budget Actual Variance Budget Actual Variance Sales to Customers 56,090 4,109 4,186 76 51,185 52,101 915 Other Revenues 3,881 315 215 (100) 3,424 2,878 (546) Power Supply Revenues 7,631 2,301 931 (1,370) 7,631 7,441 (190) Total Operating Revenues 67,602 6,726 5,332 (1,394) 62,241 62,420 179 Power Supply Expense (Net) 35,540 2,827 2,760 67 32,662 33,792 (1,130) Operating Expense 22,912 1,847 1,701 146 20,394 19,424 969 Depreciation & Amortization 5,832 486 505 (19) 5,346 5,452 (106) Taxes 3,615 304 264 40 3,314 3,141 172 Sub-Total Expenses 67,899 5,464 5,229 235 61,715 61,810 (95) Operating Income (298) 1,261 102 (1,159) 525 610 84 Other Income & Deductions 6,855 556 500 (57) 6,341 6,749 409 Interest Expense 3,204 263 262 1 2,941 2,890 51 Net Income (Loss) 3,354 1,556 340 (1,215) 3,925 4,467 542 Year-to-Date Results:  Sales to Customers up $915,500 (1.8%). Residential Sales up $397,100 and Non-Residential Sales up $512,300.  Other Revenues down $546,000 (16%) a. DSM billable (customer driven).  Power Supply Revenues down $189,000 (2%) a. McNeil REC revenue of $3,757,000 compared to a budget of $3,332,000. b. Wind REC revenue of $2,724,000 compared to a budget of $3,196,000. c. Hydro REC revenue of $815,000 compared to a budget of $911,000. d. Other REC revenue of $146,000 compared to a budget of $192,000.  Power Supply Expenses (Net) up $1,130,000 (3%) a. Fuel down $1,440,000. b. Purchased Power up $2,550,000. c. Transmission up $20,000.  Operating Expenses down $969,000 (4.8%)  Taxes down $172,300 (5.2%) a. Actual Winooski One Property Tax is $228,300 lower than budget assumption for the year. b. Actual Payment in Lieu of Tax (PILOT) is $63,500 higher than budget assumption for the year.  Other Income & Deductions up $409,000 (6.4%) a. Timing of jobbing unfavorable ($154,900). b. Offset by unrealized gain on investment $74,500 and interest income $175,000. c. Timing on loss on disposition of plant favorable, $311,400. 1 FINANCIAL HIGHLIGHTS – BUDGET VS ACTUAL as of MayFY25 Capital Spending – May YTD ($000s) Plant Type Full Yr. Budget Budget Actual % Spent Production $2,446 $2,359 $2,241 92% Other 369 367 284 77% Transmission 577 577 577 100% Distribution 5,797 5,571 3,847 66% General 2,478 2,294 623 25% Total $11,667 $11,168 $7,572 65% (1) Production – Timing; budget includes catalyst replacement for NOx system at the McNeil Plant, $450,300 vs actual $225,700. There are no replacement rail cars available this fiscal year ($50,000). Offset by Winooski One Hydro inflatable Dam project higher than planned. (2) Distribution – Transformers under budget due to availability ($1,062,700). (3) General – Timing; budget includes IT Forward CIS implementation of $1,620,600 vs actual of $241,500. As of May 31, 2025 Operating Cash and Investments Operating Funds $8,549,900 Operating Fund – CDs $978,600 Total Operating Cash $9,528,524 Credit Rating Factors – May 2025 3 Year "A" "Baa" Current Average Debt Service Coverage Ratio 1.25 1.25 4.91 4.21 Adjusted Debt Service Coverage Ratio 1.50 1.10 1.26 1.24 Cash Coverage - Days Cash on Hand 90 30 - With $10M Line of Credit 144 130 - Without Line of Credit 83 2 Burlington Electric Department Fiscal Year Ending June 30, 2025 Total Sales to Customers - KWH Monthly 35,000 30,000 KWH (000) 25,000 20,000 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Budget 31,875 30,916 26,348 24,728 24,527 26,775 27,534 25,154 25,632 23,380 24,109 26,888 Actual 32,858 30,322 26,906 25,257 24,535 27,234 28,719 26,360 25,960 23,631 24,178 KWH Sales to Customers (YTD) Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Budget 31,875 62,791 89,139 113,867 138,394 165,169 192,703 217,857 243,489 266,869 290,978 317,865 Actual 32,858 63,180 90,086 115,343 139,878 167,112 195,831 222,192 248,151 271,782 295,960 3 FY 2025 Cooling Degree Days (CDD) 400 350 300 250 200 150 100 50 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Budget CDD 269 220 85 9 1 0 0 0 0 2 52 132 Actual CDD 340 195 78 10 0 0 0 0 0 6 29 Heating Degree Days (HDD) 1,600 1,400 1,200 1,000 800 600 400 200 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Budget HDD 2 6 109 388 787 1,081 1,316 1,154 1,013 577 211 44 Actual HDD 0 17 53 365 682 1,118 1,342 1,221 828 539 229 Average Monthly Temperature Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Budget 73 72 64 53 39 30 22 24 32 46 60 68 Actual 76 70 66 53 42 29 22 21 38 47 58 CDD/HDD definition per National Weather Service : Degree days are based on the assumption that when the outside temperature is 65°F, we don't need heating or cooling to be comfortable. Degree days are the difference between the daily temperature mean (high temperature plus low temperature divided by two) and 65°F. If the temperature mean is above 65°F, we subtract 65 from the mean and the result is Cooling Degree Days. If the temperature mean is below 65°F, we subtract the mean from 65 and the result is Heating Degree Days. 4 Burlington Electric Department Fiscal Year Ending June 30, 2025 KWH Sales Residential Customers 10,000 9,000 KWH (000) 8,000 7,000 6,000 5,000 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Budget 8,781 8,358 6,618 6,333 6,882 8,264 9,026 8,027 7,724 6,132 5,808 6,992 Actual 9,514 8,313 6,733 6,475 6,932 8,616 9,293 8,355 7,519 6,241 6,143 Commercial & Industrial Customers 25,000 22,500 20,000 KWH (000) 17,500 15,000 12,500 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Budget 23,095 22,558 19,730 18,395 17,645 18,511 18,508 17,127 17,908 17,248 18,300 19,895 Actual 23,344 22,009 20,173 18,782 17,603 18,618 19,426 18,005 18,441 17,390 18,035 Street Lighting is included with Commercial & Industrial Customers. 5 Net Power Supply Costs May - FY 2025 ($000) Current Month Year-to-Date Budget Actual Variance Budget Actual Variance Expenses: Fuel (p. 7) $373 $545 ($172) (1) $8,424 $6,984 $1,440 (1) Purchased Power (p.11) 1,466 1,348 119 (2) 14,147 16,698 (2,550) (2) Purchased Power Adjustment (p 11) 43 43 (0) 477 477 (0) Transmission Fees - ISO 549 644 (96) (3) 7,003 7,390 (386) (3) Transmission Fees - Velco 308 126 182 (4) 1,735 1,430 305 (4) Transmission Fees - Other 87 54 32 (5) 876 815 61 (5) Total Expenses 2,826 2,760 66 32,662 33,792 (1,130) Revenues: Renewable Energy Certificates - McNeil 951 831 (120) 3,332 3,757 425 Renewable Energy Certificates - Wind 974 100 (874) 3,196 2,724 (471) Renewable Energy Certificates - Hydro 184 0 (184) 911 815 (96) Renewable Energy Certificates - Other 192 0 (192) 192 146 (47) Total Revenues 2,301 931 (1,370) (6) 7,631 7,441 (189) (6) Net Power Supply Costs $525 $1,829 ($1,304) $25,031 $26,351 ($1,320) Load (MWh) 24,825 24,851 26 298,847 303,848 5,001 $/MWh $21.14 $73.61 $52.47 $83.76 $86.72 $2.96 Current Month: (1) See detail on page 7. (2) See detail on page 11. (3) ISO-NE Price and Peak Load over Budget. (4) VELCO Common charges under Budget. (5) NYISO NYPA Transmission under Budget. (6) Timing of REC deliveries. YTD: (1) See detail on page 7. (2) See detail on page 11. (3) ISO-NE Price and Peak Load over Budget. (4) VELCO Common charges and BED Share under Budget. (5) NYPA NYISO Transmission charges under Budget. (6) REC Sales under Budget due to lower Wind production in Calendar Year 2024. 6 Net Power Supply Costs May - FY 2025 ($000) Current Month Year-to-Date Budget Actual Variance Budget Actual Variance FUEL: McNeil 367 537 (170) (1) 8,285 6,882 1,403 (1) Gas Turbine 6 7 (1) (2) 139 102 37 (2) Total Fuel 373 545 (172) 8,424 6,984 1,440 Current Month: (1) McNeil production 117% over Budget. Wood Price per Ton 2% over Budget. (p. 8) (2) GT production (22 MWh) 66% over Budget. YTD: (1) McNeil production 15% under Budget. Wood Price per Ton 1% under Budget. (p. 8) (2) GT production (262 MWh) 9% under Budget. 7 Burlington Electric Department McNeil Plant - MWH Production (50%) FY 2025 25,000 20,000 15,000 10,000 5,000 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Budget 11,656 11,656 3,760 4,324 7,520 17,484 17,484 15,792 13,968 3,300 3,150 6,317 Actual 5,016 8,822 14,029 0 8,548 15,831 16,340 12,857 5,066 276 6,842 Maximum 18,600 18,600 18,000 18,600 18,000 18,600 18,600 16,800 18,600 18,000 18,600 18,000 8 Burlington Electric Department Winooski One - MWH Production FY 2025 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Budget 2,650 1,246 832 1,541 1,942 3,216 2,531 1,587 2,032 4,503 3,575 3,643 Actual 2,803 2,784 1,054 1,032 1,316 1,355 1,082 853 2,566 3,073 2,804 Maximum 5,506 5,506 5,328 5,506 5,328 5,506 5,506 4,973 5,506 5,328 5,506 5,328 9 Burlington Electric Depatment Fiscal Year 2025 Woodchips Price Per Ton Monthly Variance 30% 25% 20% 15% 10% 5% $/Ton 0% -5% -10% -15% -20% -25% -30% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Actual -2% -3% -2% -3% -4% -4% 1% 4% 4% 2% 2% Woodchips Price Per Ton Year-to-Date Variance 30% 25% 20% 15% 10% 5% $/Ton 0% -5% -10% -15% -20% -25% -30% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Actual -2% -2% -2% -3% -3% -3% -3% -3% -2% -2% -1% * Wood only. Does not include other costs. 10 Net Power Supply Costs May - FY 2025 ($000) Current Month Year-to-Date Budget Actual Variance Budget Actual Variance PURCHASED POWER: Non-Energy (capacity) 63 29 34 736 484 252 Energy: Georgia Mountain Wind 276 236 40 (1) 3,073 3,401 (328) (1) Hancock Wind 242 175 67 (2) 2,947 2,713 234 (2) VT Wind 219 169 50 (3) 2,364 2,518 (154) (3) Hydro Quebec 301 300 1 3,296 3,287 9 Great River Hydro 0 0 0 1,064 1,159 (95) (4) In City Solar Generators 89 76 13 (4) 743 731 12 NYPA 6 7 (0) 68 80 (12) (5) ISO Exchange 187 (97) 284 (5) (1,185) (1,666) 480 (6) ISO Exchange Adjustment 43 43 (0) (**) 477 477 (0) (**) FirstLight 0 357 (357) (6) 0 1,667 (1,667) (7) Velco Exchange 0 0 (0) 0 (5) 5 Total Energy 1,364 1,268 96 12,847 14,363 (1,516) Ancillary Charges (20) 23 (42) (125) (36) (89) VT RES Tier 1 Compliance Expense 54 12 42 (7) 596 248 348 (8) Renewable Energy Credit Purchase 0 0 0 0 1,449 (1,449) (9) Miscellaneous-Other 48 59 (10) 570 667 (97) Total Purchased Power Expense 1,510 1,391 119 14,624 17,175 (2,551) Special Note (**) Adjustment to reduce expense and create regulatory asset by amount of ISO Exchange excess winter energy revenue shortfall ($4,162,233) and record one-eighth ($520,279) as amortization in FY24. Current Month: (1) Production 14% under Budget. (2) Production 28% under Budget. (3) Production 23% under Budget. (4) Production under Budget. (5) McNeil (117%) production over Budget. (6) FirstLight contract not in Budget. (7) VT RES Tier 1 Compliance budgeted monthly, expensed quarterly. YTD: (1) Production 10% over Budget. (2) Production 8% under Budget. (3) Includes additional congestion relief charge not in Budget. (4) Associated RECs not Budgeted under Energy. (5) Production over budget. (6) Energy Prices over Budget. Revenue from FirstLight contract not in Budget. (7) FirstLight contract not in Budget. (8) VT RES Tier 1 Compliance budgeted monthly, expensed quarterly. (9) Includes purchase used to complete REC sales. 11 Burlington Electric Department Operating and Maintenance Expense by Spending Category FY 2025 - May YTD % Budget Actual Variance Variance * Labor-Regular 8,146,057 8,238,894 (92,837) 1% a Labor-Overtime 389,066 449,618 (60,552) 16% b Labor-Temporary 200 15,029 (14,829) 7415% c Labor-Overhead 3,507,915 3,560,270 (52,355) 1% d Outside Services 2,356,600 1,902,148 454,452 19% e DSM (rebates & outside services) 1,893,161 1,702,306 190,855 10% f Materials & Supplies 893,777 655,140 238,637 27% g Insurance 722,392 698,044 24,348 3% A & G Clearing (963,388) (758,748) (204,640) 21% h Other - RES Tier 3 Compliance 872,731 726,272 146,459 17% Other 2,574,965 2,237,060 337,905 13% i Operating & Maintenance Expense 20,393,477 19,426,033 967,444 5% (a) Labor is impacted by the amount of capital (vs. expense) work. (b) McNeil Plant s higher than planned, $91,600; offset by areas lower than planned including System Operations, ($18,500) and W1 ($8,800).. (c) Temporary help at McNeil Plant. (d) See page 13. (e) Timing of various areas. (f) Projects are driven almost entirely by customer decisions. The budget is based on information on specific projects or seasonal variations; otherwise the amount is spread evenly across the year. (g) Timing of various areas. (h) The credit for A&G ("Admin and General Expenses") charged to Capital projects was less than planned. (i) Timing; various areas are less than budget including, Education & Training ($86,900), Maintenance Contracts ($53,900), Transportation Clearing ($242,900), Dues & Fees ($32,200), and Utilities ($9,100); offset by areas higher than budget including Building Clearing, $23,600. 12 Burlington Electric Department Budget vs Actual Spending Analysis FY 2025 - May YTD (000's) Labor - Overhead Budget Actual Variance % Pension $1,770 $1,685 $85 5% (a) Medical Insurance 1,907 1,844 63 3% (b) Social Security Taxes 969 901 68 7% (c) Workers Compensation Ins. 382 382 (0) 0% (b) Dental Insurance 87 81 6 7% (b) Life Insurance 18 19 (1) -3% (b) Childcare Contribution Tax 56 48 7 13% (d) $5,188 $4,960 $228 4% Rates Table: Budget Pension (a) 14.13% Social Security (c) 7.65% Childcare Payroll Tax 0.44% (a) Function of labor cost. Includes pension per Actuarially Determined Employer Contribution (ADEC), $1,843,800 and amortization of IBEW Pension back payment, $87,041. (b) Budget provided by the City during budget development. Actual YTD reflects an error that will be corrected throughout the remainder of the year. (d) New tax as of July 1, 2024 is 0.44% of wages. Budget had assumed .33% of wages. 13 Net Income FY 2025 - May ($000) Current Month Year - To - Date Ref Budget Actual Variance Budget Actual Variance Operating Revenues Sales to Customers p.3 4,109 4,186 76 51,185 52,101 915 Other Revenues 315 215 (100) (a) 3,424 2,878 (546) (a) Power Supply Revenues p.6 2,301 931 (1,370) 7,631 7,441 (190) Total Operating Revenues 6,726 5,332 (1,394) 62,241 62,420 179 Operating Expenses Fuel p.6 373 545 (172) 8,424 6,984 1,440 Purchased Power p.6 1,509 1,391 118 14,624 17,175 (2,551) Transmission p.6 944 824 120 9,614 9,635 (21) Operating and Maintenance p.12 1,847 1,701 146 20,394 19,424 969 Depreciation & Amortization 486 505 (19) 5,346 5,452 (106) Revenue Taxes 56 48 8 583 590 (7) Property Taxes Winooski One 45 26 19 (b) 493 284 209 (b) Payment In Lieu of Taxes 203 190 13 (c) 2,238 2,268 (30) (c) Total Operating Expenses 5,463 5,229 234 61,715 61,812 (97) Other Income and Deductions Interest/Investment Income 36 122 86 453 628 175 Dividends 373 373 0 4,100 4,132 32 Customer Contributions/Grant Proceeds 147 43 (104) (d) 2,081 2,061 (20) (d) Gain/(Loss) on Disp of Plant 0 0 0 (336) (24) 311 Other (0) (38) (38) (e) 42 (48) (90) (e) Total Other Income & Deductions 556 500 (57) 6,341 6,749 409 Interest Expense 263 262 1 2,941 2,890 51 Net Income 1,556 340 (1,215) 3,925 4,467 542 Current Month: (a) Energy Efficiency Program cost reimbursement was lower than planned, $97,500. (b) Actual Winooski One tax bill is lower than budget assumption by $228,300 for the year. (c) Actual Payment in Lieu of Tax (PILOT) is higher than budget assumption by $63,500 for the year. (d) Budget includes customer contributions for Champlain Pkwy ($44,100), City Place street lighting ($49,300) and other overhead/UG billable construction ($26,200). Also, grant income for "Building Giants" (Federal 50% share) ($24,100). Actual includes various grant income. (e) Timing of jobbing favorable, $20,100. Year - To - Date: (a) Energy Efficiency Program cost reimbursement was lower than planned, $605,300. (b) See current month. (c) See current month. (d) Budget includes Winooski One FEMA reimbursement (75%) for inflatable dam ($1,057,500), and other customer contributions for Champlain Parkway ($279,200), City Place Streeet Lighting ($148,000), Winooski bridge rebuild ($34,800), Great Streets ($22,000) and other overhead and underground billable. Also, grant income for FEMA reimbursement for July '23 flooding at Winooski One ($101,800) and "Building Giants" (Federal 50% share) ($264,000). Actual includes Champlain Parkway, overhead & underground billable, FEMA reimbursement for inflatable dam at Winooski One ($1,224,800) and various grant income. (e) Timing of jobbing unfavorable ($154,900); offset by unrealized gain on investment, $74,500. 14 Burlington Electric Department Capital Projects - FY25 $000 Full Year May Budget Budget Actual Variance McNeil (BED 50% Share) Ash Silo Pug Mill/Auger Upgrade (312) 25 25 25 Catalyst Replacement for Nox System (312) 450 450 226 225 Condensate Motor (314) 10 10 10 Condensate Pump (314) 15 15 15 Cooling Tower Make-Up Pumps Replaced (314) 8 8 8 ESP Mechanical Field Rebuild 284 284 326 (42) Farmhouse Improvements (311) 10 10 5 5 McNeil - IT Forward FIS 38 31 31 Reclaimer Rebuild (312) 30 30 30 1 Replace Water & Sewer Lines at the Farmhouse (311) 28 28 28 Replacement Rail Cars (312) 50 50 50 (a) Routine Station Improvements 1 188 188 44 144 Safety Valve Replacements (312) 13 13 2 10 Station Tools & Tool Boxes (312) 8 8 7 1 Turbine Control System Upgrade/Insurance (314) 0 21 (21) West Grate Repair 0 134 (134) Woodchip Dryer (1 of 2) (312) 38 38 1 36 Loader repair 0 (25) 25 Other 16 16 7 9 (b) Total McNeil Plant 1,209 1,202 778 424 (a) Project will not happen this fiscal year. There are no rail cars available. (b) Budget includes perimeter fence upgrade, rigging equipment, portable radios upgrade, energy efficiency improvements and furniture. Hydro Production 980 901 1,396 (495) (a) (a) Full year budget assumes inflatable dam project at a cost of $1.3M with 75% reimbursement from FEMA of $1.1M. Actual project is $1.1M higher than planned to date. FEMA reimbursement received in April of $1.2M. Budget assumes Turbine Overhaul of $244,100 vs actual $0 and FERC Relicensing of $265,368 vs actual $145,170. Gas Turbine 257 257 68 189 (a) (a) Timing; budget assumed roof replacement in August, $97,600, delayed until spring and estimated to cost $125,000. Total Production Plant 2,446 2,359 2,241 118 15 Burlington Electric Department Capital Projects - FY25 $000 Full Year May Budget Budget Actual Variance Other Direct Current Fast Chargers (Level 3) 171 171 119 52 Distributed Energy Resources 33 31 31 (a) EV Charger Installations (Level 2) 127 127 48 79 EV Chargers Public (Level 2) 3 (3) EV Chargers/Staging Plan 13 13 6 7 P&P R&D 26 24 24 (a) Moduly Project 108 (108) (a) Total Other 369 367 284 83 (a) Budget for Distrubuted Energy Resources and P&P R&D used for Moduly project. Transmission Plant VT Transco Investment 577 577 577 0 Total Transmission Plant 577 577 577 0 Distribution Plant-General Aerial Archibald St Rebuild 66 66 56 10 Barrett Street Rebuild 10 (10) Dunder Road Rebuild 58 58 32 26 North St Rebuild P1577-1486 0 113 (113) Replace 2L5 Circuit from P2349-913S 0 21 (21) Replace Condemned Poles 110 110 107 3 South Cove Road East Rebuild 145 145 21 124 South Cove Road West Rebuild 184 184 7 178 Total Aerial 563 563 366 197 Underground Battery St Phase I Replace UG Cable 117 (117) Battery St Phase II Replace UG Cable 517 517 517 Cathedral Square Rebuild 41 41 43 (2) College St (Pine - St Paul St) Replace UG Cable 148 148 62 86 Fern Hill UG Rebuild 0 4 (4) Replace 2L5 Cable 913s to UH248 0 35 (35) Summit Ridge Rebuild 63 63 170 (108) Switch 305S/325S/326S (Main St Reservoir) 258 258 184 74 Switch 322/323/324S (Main St and Univ Hts) 242 242 205 37 Switch 817S/912S/913S (Main St Reservoir) 151 151 110 41 Total Underground 1,421 1,421 930 491 16 Burlington Electric Department Capital Projects - FY25 $000 Full Year May Budget Budget Actual Variance Customer Driven/City Projects Champlain Parkway-Billable 345 328 62 266 Champlain Parkway (CAFC) (294) (279) (457) 178 City Place Streetlighting 306 230 230 City Place Streetlighting (CAFC) (197) (148) (148) Great Street-Main Street 23 22 8 14 Great Street-Main Street (CAFC) (23) (22) (22) Winooski Bridge Rebuild 35 35 35 Winooski Bridge Rebuild (CAFC) (35) (35) (35) Total Underground 161 131 (387) 518 Other College St Breaker Racking Device 25 25 25 Distribution Transformers-Purchase 1,590 1,590 508 1,082 (a) Distribution Transformers-Install 6 6 25 (19) Communication Equipment Emergency Repair 15 15 15 ADMS SCADA Upgrade (Phase I/11) 617 617 1,019 (402) ADMS SCADA Upgrade (Phase III/IV) 542 379 379 SCADA Servers PC's and Monitors 0 46 (46) SCADA Video Display 0 0 (0) SCADA Equipment 128 128 50 78 Other 27 (27) Total Other 2,922 2,759 1,676 1,083 Total Distribution Plant-General 5,066 4,874 2,585 2,289 (a) Timing; due to availability will be under budget this fiscal year. Distribution Plant - Blanket Aerial 146 143 207 (65) Aerial (CAFC) (64) (61) (66) 5 Underground 321 281 526 (246) (a) Underground (CAFC) (132) (112) 111 (223) (a) Meters 178 176 168 8 Lighting 223 211 249 (38) Tools & Equipment - Distribution/Technicians 30 30 28 2 Replaces Failed SCADA Field Equipment 11 11 32 (21) Substation Maintenance 18 18 6 11 Total Distribution Plant - Blanket 731 697 1,263 (566) (a) Actual includes prior year progress billing that was reversed, $277,368 in September (wf 36863 - City Place). Total Distribution Plant 5,797 5,571 3,847 1,723 17 Burlington Electric Department Capital Projects - FY25 $000 Full Year May Budget Budget Actual Variance General Plant Computer Equipment/Software 2,127 1,943 485 1,458 (a) Vehicle Replacement 191 191 191 Buildings & Grounds 155 155 138 18 (b) Gas Detectors 5 5 5 Total General Plant 2,478 2,294 623 1,671 (a) Budget includes IT Forward, $1,620,600 vs actual of $241,500. Other various projects include AMI Network Infrastructure replacement, desktop/laptop replacements, iPads replacements for line crew and engineering plotter. (b) Budget includes Key Fob Replacement, New SCADA Room, Storage racks for red warehouse and Ice Machine (breezeway). Actual includes fence for solar array and security cameras. Sub-Total Plant $11,667 $11,168 $7,572 $3,596 Add: CAFC* reclass to "Other Income" 1,803 1,715 1,638 77 Total Plant $13,470 $12,882 $9,210 $3,672 * Customer Advances (Contributions) for Construction. 18 Operating Cash - FY 2025 Monthly Ending Balance 14,000 12,000 10,000 8,000 $000 6,000 4,000 2,000 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Budget 7,664 8,809 11,355 11,436 10,765 10,299 11,208 11,973 10,795 9,939 11,027 9,803 Actual 7,569 9,413 9,254 13,174 11,163 10,956 11,417 11,173 10,211 9,072 9,529 19 BURLINGTON ELECTRIC DEPARTMENT 20254–256 STRATEGIC DIRECTION MISSION To serve the energy needs of our customers in a safe, reliable, affordable, sustainable, and socially responsible manner. VALUES Safety, Reliability, Community, Innovation 2030 VISION Make Burlington a Net Zero Energy city by eliminating fossil fuel usage across the electric, thermal, and ground transportation sectors by strategically electrifying, managing demand, realizing efficiency gains, and expanding local renewable generation while increasing system resilience. STRATEGIC OBJECTIVES Engage Customers and Community 1. Focus on customer first-call resolution to provide exceptional customer care 2. Increase Expand education and engagement to enhance capacity-building and energy literacy with customers on our Net Zero Energy vision through all communications channels, with a focus on web and social media and video 3. Work with frontline communities to Eensure programs and services are equitable and fully accessible to alland build community resilience, so all Burlingtonians including people whose primary language is not English and low-to-moderate income, rental, Black, Indigenous, and People of Color (BIPOC), immigrant, and refugee populations can benefit from Net Zero Energy initiatives 4. Evolve traditional energy efficiency programs to complement strategic electrification efforts, to drive deeper greenhouse gas emissions reductions, to fill gaps due to federal program changes, help manage peak demand, and improve community resilience and environmental health 5. Proactively seek customer input, with the help of existing and strategic community partners, and incorporate their input into program design 6. Provide website and other educational tools so that customers can evaluate both cost and greenhouse gas emission reduction outcomes from heat pumps, electric vehicles, and other electrification technologies relative to current fuel sources Strengthen Reliability 1. Maintain five-year Distribution System and Generation construction plans to accommodate potential load increases due to the Net Zero Energy goals, and design and construct projects to continue to improve safety, reliability, and efficiency 2. Continue to follow maintenance plans for McNeil Generating Station, Winooski One Hydro, Gas Turbine, and the Distribution System 3. Take steps to ensure reliable operations through staff succession planning 4. Ensure consistent fuel supply availability at McNeil based on annual operational strategy and procurement procedures 5. Implement Outage Management System (OMS) and grid analytics to improve response to system outages, system reliability, and efficiency Invest in our People, Processes, and Technology 1. Attract, develop, and retain a diverse workforce with the knowledge, skills, and ability to support BED’s Net Zero vision and strategic objectives 2. Develop a culture of integrity, safety, inclusion, innovation, teamwork, cyber- awareness and continuous learning and improvement 3. Continually improve internal processes to design and deliver innovative programs and services, maximize operational efficiency and effectiveness, and optimize use of data to inform decision-making 4. Plan and invest in the technology infrastructure necessary to support BED’s mission, vision, and strategic priorities, including multi-year replacement of core business systems 5. Lead by example in reducing vehicle miles traveled through remote work flexibility, support for multi-modal transportation and carsharing partners, and supporting bicycling (both conventional and e-bikes) through employee programs Innovate to Reach Net Zero Energy 1. Advance district energy, networked geothermal, battery storage projects, and local renewable energy production including customer-owned and community- based projects 2. Improve and expand automated demand response capability, with focus on EV charging and thermal, and implement appropriate end-use technologies to manage loads 3. Advance additional dynamic and creative rates to achieve Net Zero Energy goal 4. Continue to track and report to the community on progress toward the Net Zero Energy Roadmap goal 5. Provide clean and affordable transportation fuel through renewable electricity, and invest in and encourage use of the necessary infrastructure to serve customers across all modes of transportation, including electric bikes, electric vehicles, and electric transit buses, and ensure charging infrastructure is available for all Burlingtonians, including in locations near affordable and rental housing, frontline communities, and small businesses in under-resourced areas 6. Actively participate in City policy processes aimed at reducing greenhouse gas emissions in the ground transportation and building sectors 7. Build and maximize use of partnerships that provide unique value, broaden engagement, and offer opportunities to make progress toward Net Zero Energy at a more rapid pace and greater scale 8. Maintain and invest in quality facilities and use them to pilot and showcase new technologies that advance Net Zero Energy Manage Budget and Risks Responsibly 1. Create financially responsible and sustainable budgets that promote affordability, target investment in vulnerable communities, and protect against cost -burdens for low-income customers and that balance the need for stable rates, investment in core infrastructure, and strong credit rating factors 2. Develop and maintain a sustainable debt financing plan for Net Zero Energy to support electrification while mitigating upward rate pressure 3. Strengthen internal policies and procedures to ensure timely and diligent compliance with risk, safety, financial, environmental, and other legal and regulatory standards 4. Efficiently and effectively manage procurement of goods and services 5. Strengthen cybersecurity by investing in advanced technologies, improving threat response processes, and providing continuous staff training to protect our infrastructure and customer data