Taunton Municipal Lighting Plant

Commissioner’s Letter

2009 packed a powerful punch in productivity levels at TMLP Strategic planning efforts, emergency operating plans, remediation of former generating stations, regulatory compliance issues and the ever-fluctuating power cost charges were but a few of the areas discussed during our commission meetings. At the forefront of every discussion were the TMLP ratepayers, customers and the communities we serve.

Sustainability initiatives covered a wide spectrum of areas including power supply, Unit 10 and the remediation of our West Water Street facility while fiduciary responsibility was evident with the three purchased power cost adjustment decreases during 2009, the litigation and significant reduction in the out-of-merit dispatch of Mirant’s Canal Plant and the renewed Moody’s rating of A3 for three more years.

As a result of the unpredictability of the economy and the marketplace, coupled with the strong need for customers to reduce their dependency on foreign oil and take greater control over their electric usage, TMLP saw a significant decline in its kilowatt-hour sales and corresponding income (a reduction of 4.7%); the decrease in power supply costs had a correlating effect on the operating expenses (down 8.1%). Despite the decline, we were able to maintain our PILOT (Payment In-Lieu of Tax) payment to the City of Taunton at $2.9 million, enabling the city to maintain a level of service the citizens of Taunton have come to expect, and ratepayers got a desperate reprieve from the high fuel costs they witnessed the prior year.

With a solid strategic and implementation plan in place (the fruits of a lot of hard work during 2009), the management team is well poised to focus on six operating strategies during the next five years: Customer service, employees, financial, environmental, technology and power supply. Commissioners Martin, Blackwell and I look forward to working with the staff to keep the TMLP vibrant and financially healthy for many years to come.

Respectfully,
Peter Corr

TMLP Chairman of the Board and Commissioners, Joseph Martin and
Mark Blackwell Sr.