The Town of Concord's Light Board convened on November 15, 2024, to discuss financial projections and potential rate adjustments for the upcoming year. The meeting focused on the anticipated shortfall in revenue and the implications for customer rates.

During the session, it was noted that the board needs to collect approximately $1.7 million to $1.8 million more than what was collected in the current year. This figure is subject to variability due to factors such as load growth, which may not be consistent throughout the year. The board acknowledged that increased demand from heat pumps could lead to higher usage in winter months, necessitating further refinement of the financial model.

Laura, a board member, elaborated on the expected shortfall, indicating that it translates to an increase of about one cent per kilowatt-hour for customers, equating to roughly a 5% rise from the current residential rate of 20 cents. This shortfall includes a provision of about $1 million earmarked for return on rate base, which is essential for covering debt service and addressing the gap between historical equipment costs and current replacement costs due to inflation.

The discussion highlighted the philosophical rationale behind forecasting a positive net income, even for a nonprofit entity. It was emphasized that such forecasting is crucial for maintaining financial stability and ensuring the ability to fund necessary infrastructure replacements.

The board plans to provide further details and updates at the next meeting in December, as they continue to refine their financial strategies and address the potential rate adjustments needed to meet the projected shortfall.