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Report of the Cape Light Compact To the Honorable Board of Selectmen and the Citizens of the Town of Mashpee: Mashpee Representative — Andrew Gottlieb Cape Light Compact is an award -winning energy services organization operated by the 21 towns and two counties on Cape Cod and Martha's Vineyard. The Compact's mission is to serve its 200,000 customers through the delivery of proven energy efficiency programs, effective consumer advocacy, competitive electricity supply and green power options. For more information, visit www.capelightcompact.org. POWER SUPPLY — Stability, Security and Green Power Options Calendar year 2016 was slightly less volatile than prior years in terms of delivered natural gas prices, which resulted in lower and more stable electricity pricing overall. The combination of milder -than -expected real- time wholesale electricity prices in the winter of 2014-2015, a relatively warm 2015 fall season, and the continuation of a New England -wide winter reliability program led to lower forward power pricing for the winter of 2015-2016 than the record highs seen in the 2014-2015 winter. Customers benefitted from this in the form of lower retail electricity prices, and based on these market factors, the Compact made a decision in December 2015 to lock in a rate for twelve months rather than go with the normal six-month pricing. The twelve-month rate was lower than Eversource's January -June Basic Service rate, which helped to mitigate impacts to customers' winter electric bills. This meant that Compact customers saved a cumulative total of approximately $3.2 million over Basic Service from January through June. Despite lower and more stable prices this year, New England continues to face electricity pricing challenges associated with the limited pipeline capacity that delivers natural gas to electric generators, which supply over fifty percent of New England's electricity. The pipeline constraint is only an issue for a limited number of hours in the winter, when gas is also used for heating homes, creating a supply shortage and increased pricing for generators, thereby increasing the price for every megawatt hour they produce. Until such time as this issue is addressed, either through additional infrastructure, demand reduction or other targeted programs, the possibility of future high winter pricing remains, and as such, consumers should still expect seasonal pricing fluctuations for the foreseeable future. The Compact continues to provide power supply to commercial customers through its contract with NextEra Energy Services and to residential customers through ConEdison Solutions. As of November 2016, the Compact had approximately 7,508 electric accounts in the Town of Mashpee on its power supply. CONSUMER ADVOCACY — Committed to Consumer Interests Since 1997, Cape Light Compact has advocated for the ratepayers of Cape Cod and Martha's Vineyard at the local and state level. In 2016, the Compact continued its focus on grid modernization, reviewing the plans submitted by the utilities in August 2015 and beginning to engage stakeholders about the plan and its implications for the energy future of Cape Cod and Martha's Vineyard. The Compact was granted full party status in Eversource's grid modernization plan review docket at the Department of Public Utilities (DPU), meaning the Compact will have the opportunity to take an active role in the adjudicatory review process of the plan. There are several key areas of concern to the Compact and Cape and Vineyard ratepayers, and the Compact will continue to engage our member communities to make sure they have a voice in these important decisions that will have a major impact on how energy is used and consumed on the Cape and Vineyard. The Compact was also a participant in the DPU dockets for the proposals that were put forth this year by the state's two main electric distribution companies (EDCs), Eversource and National Grid, to contract for new natural gas pipelines and pass costs on to electric consumers. The EDC's proposed to have the costs of expanding natural gas pipelines paid by electric rate payers through increased distribution charges. The Compact noted that this concept is contrary to the 1997 Massachusetts Restructuring Act. The Compact objected to having electric rate payers fund natural gas pipelines, and supported the position that natural gas 0