January 30, 2006 City Council Meeting

Report on Municipal Electric Company
During the last City Council the City Manager was asked to report to the Council on how the City can own and operate its own power transmission facility or municipal power company. In response the City manager hired CDM to analyze the cost to purchase and operate the system currently operated by the Cambridge Electric Company now owned and operated by NStar.

The analysis found that the cost, using information filed by NStar at the State Department of Telecommunications and Energy, to purchase the system would be between $115 and 170 million. The report also estimates operating costs based on NStar’s current costs. Based on the report the Manager does not recommend the City pursue the option to purchase the existing system.

The report was referred to the Council Finance Committee and to the Council Cable TV, Telecommunications and Public Utilities Committee.

The Manager’s letter is available at http://www.cambridgema.gov/cityclerk/cmLetter.cfm?item_id=5738 and the report is available by clicking View attached letter on this e-mail or on the Manager’s transmittal.