The Danvers Finance Committee convened on April 17, 2025, to review the electric budget for the calendar year 2025, with Electric Utility Director Clint Allen presenting key details. The committee discussed a projected budget that is approximately $4 million lower than the previous year, primarily due to reduced purchase power expenses.

Allen explained that the operations and maintenance budget remains stable, while significant capital projects, such as the Northland Substation, continue to progress. The budget reflects a conservative approach to power supply, taking into account historical averages and potential market volatility. Over the past two years, mild winters resulted in a surplus of about $4.4 million in power supply funds, which the municipal light plant is required to return to ratepayers.

To manage this surplus, the budget for 2025 includes plans to return $4 million to customers throughout the year, aiming to maintain a surplus fund of approximately $600,000, which represents 2% of the total budget. The committee noted that the electric utility has successfully transitioned to 80% non-carbon energy sources, exceeding state mandates for 2040.

Discussion also touched on the competitive landscape for energy supply, particularly regarding nuclear contracts. Allen highlighted the importance of securing contracts to prevent larger utilities from monopolizing resources. The Nuclear Regulatory Commission has extended the operational timelines for existing nuclear plants, indicating a renewed interest in nuclear energy.

The meeting concluded with committee members acknowledging the need for better communication about the utility's rates and services to enhance public appreciation. The next steps include further discussions on the electric budget at the upcoming meeting on April 28, 2025.