The Public Works Commission (PWC) owns and operates 283 MW of generation and an electric distribution system for approximately 70,000 customers. The generation provides peaking component of the City's total electric generation requirements.

PWC requested our staff to develop a forecast of the City's power requirements for the period 1999 through 2008. Econometric modeling was used to project growth based on determinants such as weather, cost of power, population trends, etc. Forecast equations were developed for each of the City's customer classes.

The forecast was used as the basis for requesting long term power supply proposals for Fayetteville's power requirements. Our staff prepared the RFP, analyzed power supply proposals, evaluated transmission alternatives, and coordinated the negotiation of power supply, transmission, marketing, and fuel supply agreements. The final contract with Progress Energy is expected to save the City more than $160 million over nine years. The contract startup was on July 1, 2003.

In July 2002, the Greenville Utilities Commission (GUC) received a request for transmission service from the Town of Winterville under Federal Energy Regulatory Commission regulations providing for open access to transmission service. Winterville had negotiated a power supply agreement with CP&L and needed to arrange delivery of the energy across the GUC transmission and distribution systems in order to serve its customers. Our staff assisted Greenville with development of rates and terms under which service will be provided. Assistance included development of monthly charges for use of transmission facilities, Distribution Facility Charges, Operations Administration Charges and determination of Transmission and Distribution Loss Factors. Our staff also assisted Greenville and its attorneys with the development of the Transmission and Delivery Services Agreement between the GUC and the Town of Winterville.

Cost of service studies have been prepared annually since 1988 by our staff along with ongoing rate services. Annual cost of service studies have been used to allocate utility margins to consumer-owners of the cooperative. Assistance has included development of basic service rates, specialized rates for large power consumers, incentives to promote residential and nonresidential load management and installation of distributed generation, and automatic rate adjustment provisions. In 1997, we prepared a more complex unbundled cost of service and rate study in anticipation of consumer choice of power supplier. Forecasts of monthly revenues by rate class and power costs also have been provided annually as part of the cooperative's budget process.

The City of Casselberry selected Booth & Associates to perform an acquisition study of the distribution system within its municipal franchise territory. The system is now owned by Florida Power Corporation. Our staff assessed the Original Cost New, the Replacement Cost New, Depreciated Original Cost, and Depreciated Replacement Cost of the system for use in arbitration proceedings with Florida Power. At the conclusion of arbitration, arbitrators set the value of the system at $22.3 million, less than half of Florida Power's valuation.

BEMC retained Booth to assist the cooperative in preparing a response to the U.S. Government's Request for Proposals to acquire and maintain the electric distribution system at Sunny Point, North Carolina. Our staff prepared the technical and price proposals and assisted BEMC in negotiations with the government. BEMC has been awarded the 50-year contract.

The Board of Public Works of Lewes, Delaware retained Booth and Associates to assist in negotiations for its withdrawal from the Delaware Municipal Electric Corporation and separation of its power supply. Our staff negotiated the withdrawal from the association and re-negotiation of power supply contracts, which saved over 10% of annual power supply costs in the first year. We recently completed negotiation of new agreements for power supply and transmission service following the expiration of the current contract.

Our staff assisted the City of Monroe in developing strategic initiatives for diversification in conjunction with the restructuring of the electric industry. Our study encompassed legal and regulatory issues, market competition, feasibility, risk assessment, and implementation strategy. The most significant initiative of value to the City was a high-speed communication system for businesses and homes which will promote economic development and a broad range of enhanced communication services for citizens. The City is moving forward currently with implementation.

The North Carolina Eastern Municipal Power Agency (NCEMPA) is a full requirements wholesale supplier to thirty-two member municipalities with electric distribution systems in central and eastern North Carolina. NCEMPA retained Booth to assist in seeking suppliers for delivery of firm resource power, including transmission and ancillary services. Our staff prepared the RFP and evaluated responses.

The City of Winter Park retained Booth to develop a valuation of the electric distribution system and substations within its municipal limits and prepare an engineering evaluation for the most economical means of separating the system from Florida Power Corporation's (FPC) system. Winter Park's franchise agreement with FPC had expired, and the City was pursuing its right to purchase the system. Booth's studies were used in conjunction with arbitration to determine the value of the system. Booth submitted testimony and assisted the City's attorneys in the proceedings. Winter Park is currently establishing its own municipal utility.

Restructuring of the electric industry and the possibility of retail choice of electric supplier have made all electric utilities much more cost conscious. For these two cities, our staff performed unbundled cost of service evaluations. The reports to the clients showed the functional costs of their operations, and compared those costs to other municipalities, rural electric cooperatives, and investor-owned utilities. We then helped the City of Washington develop plans to reduce costs in functional areas over a five-year period.

Our staff has assisted CCEC for over fifteen years with ongoing rate services. Our assistance has included annual forecasts of electric power costs and revenues and periodic cost of service evaluations. The scope has included rate design for all electric services, including special incentives to promote demand-side management.

ElectriCities is a trade association that consolidates many of the administrative and technical services needed by the fifty-one (51) North Carolina municipalities that own electric distribution systems. Booth has been assisting ElectriCities annually for six years by calculating performance indicators and comparing members' performance to each other, investor-owned utilities, and electric cooperatives. The members utilize the indicators to identify deficiencies and to reduce costs.

The City of Southport commissioned Booth to develop an RFP for privatization of operation and maintenance of its electric distribution system. After responses to the RFP were received Booth negotiated on the City's behalf with the short list of chosen bidders. Booth then developed the contract between the City and the Brunswick Electric Membership Corporation, the successful bidder.

In February 2000, the U. S. Corps of Engineers issued an RFP for contractors to purchase and operate the Fort Bragg, North Carolina military base gas, electrical, water, and wastewater systems. Several rural electric cooperatives formed Sandhills Utility Services, LLC and retained Booth & Associates to assist in developing its response to the RFP. The LLC's proposal was selected by the Corps, and Sandhills has received a fifty-year operation and maintenance contract.

Booth prepared a study assessing the potential for member municipalities to consolidate purchasing and operations of their electric utilities on a regional basis. This assessment indicated potential savings over current costs. Some of the ElectriCities members are now pursuing regionalization in purchasing, warehousing, and accounting.

The University of North Carolina at Chapel Hill (UNC) owns and operates three utility systems: electric, steam, and chilled water. The systems have grown with the university, and currently have internally billed revenues in excess of $40 million annually. UNC administration has become concerned with the accuracy of metering systems and the effect that inaccuracy might have on the university's energy usage. Booth was retained to advise on the best way to upgrade and integrate new metering systems into the existing billing and accounting systems. Booth's final report recommended specific meters with AMR and real-time monitoring capability for all systems, a wireless Ethernet to link the 188 campus buildings and transport data, and an implementation plan.

Booth evaluated the economic feasibility of NCSU extending its own electric distribution system to its Centennial Campus versus providing power from the local utility. Our staff developed discounted cash flow projections for both alternatives.

In 2002, Booth & Associates completed a cost-of-service and rates evaluation for the Town of Farmville. The project included summarizing historic billing information, determination of total system revenue requirements, development of class allocation units, allocation of total system costs by rate class, and development of rates for all customer classes.

The Rhode Island Division of Public Utilities and Carriers engaged Booth to perform an assessment of Narragansett's electric service reliability due to concerns and complaints from customers. Financial and engineering assessments were conducted using in-house data and field surveys. Narragansett's reliability programs were assessed and action items proposed for program improvements. The Strategic Planning and Financial Services Division calculated selected financial and operating ratios for Narragansett with comparisons to other regional utilities. Fourteen categories of operating ratios for Narragansett were compared to six nearby New England utilities. The analysis was used to pinpoint areas for further reliability investigation.

In 2002, Booth assisted Jones-Onslow Electric Membership Corporation by preparing a cost-of-service study and rates evaluation to reflect changes in wholesale rate design implemented by its statewide power supplier, NCEMC. Booth prepared a fully allocated cost-of-service and developed rates for all rate classes.

As part of the long-range planning process for the Cooperative, our staff evaluated the feasibility of installing distributed generation at substations to sell capacity and energy to Allegheny Electric Cooperative (Northwestern's power supplier) during peak pricing periods. Approximately 16 MW of distributed generation located at three substations was included in Northwestern's long-range plan based on results of the evaluation.

The New Jersey Board of Public Utilities retained Booth to perform a Focused Audit of the planning, operations and maintenance practices, policies and procedures of Jersey Central Power & Light Company (JCP&L) and recommend action plans to be implemented by JCP&L in order to improve its service reliability. Our Audit included a field observation and condition assessment of the electric system infrastructure, detailed interviews with utility personnel in the various operating units including senior management and a review of all critical operations and maintenance processes. Booth established objective performance standards designed to measure system reliability and developed a comprehensive set of detailed recommendations including associated action plans to improve the utility's current unsatisfactory level of service reliability to the industry average within five years.

The Pennsylvania Rural Electric Association (PREA) and Allegheny Electric Cooperative, Inc. engaged Booth to assist with their intervention before the Pennsylvania Public Utility Commission's investigation into the service reliability of FirstEnergy's Pennsylvania operating companies - Metropolitan Edison Company, Pennsylvania Electric Company and Pennsylvania Power Company. Booth provided testimony during formal hearings and assisted with settlement discussions. The investigation resulted in approval of a multi-party settlement that resolved many of the concerns identified by the electric distribution cooperatives.