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CPCNH Office Hours | 2025 & Q1 2026 Financial Report (April 24, 2026)

Video

I think most of you are familiar with
me, but if not, I'm Jackson Gace and
TPCNH's director
of member services and I'll be
moderating today's office hours.
Uh we also have Nick Gosling who is our
communications manager who will be in
the background
helping to monitor things on that end.
And with that, um today's topic is the
guide to understanding TPCNH's
financials.
And you can go ahead and advance to the
next slide, please.
For the agenda today,
um
the speakers will be talking about the
corporate structure, going through
financial reserves, oversight
management, uh talking about some of the
various financial reports uh that are
presented to the board and publicly
available, and then ending with some
discussion about mission, strategy, and
takeaways. And just as a reminder,
as a public power agency, TPCNH has 68
municipal and county members and serves
approximately 190,000 retail electric
customers.
Next slide, please.
So, for today's speakers, we have our
treasurer, Kathleen Kelly,
uh who under the bylaws oversees
receivables, payables, accounting,
investments, and submits regular
financial reports to the board. And then
we have our executive director, Henry
Herndon, who under the joint powers
agreement holds the chief executive
officer duties and oversees
administration, management, operations,
and staff and service providers.
So, together they have shared
responsibility for preparing the annual
budget for approval by our board.
And with that, I will turn it over to
our speakers to take away.
I think you're up first, Kathleen.
Okay. Or maybe am I up first? What's the
next slide, Jackson?
>> Next slide, please.
Oh, I apologize. I
>> You're up first, Anders.
I'll jump in and then Kathleen will get
into some of the details of the
reporting.
But I'm just going to start
Did you want to say anything up front,
Kathleen?
No, go right ahead. Talk about the
corporate structure. Right. So, I'll
talk about our corporate structure and
joint powers agency. This will be a
refresher for some folks, but
you know, really our financial structure
and management flows from our corporate
structure and our joint powers
agreement. Um so, you know, looking back
to the JPA, the purpose of CPCNH for the
city and town members to establish an
independent enterprise that is
financially sustainable, mutually
beneficial, and responsive to the local
priorities of the members. Um and to
have an organization that is
well-managed and overseen by the local
elected officials and officials and
members of the public from the
respective cities and towns to promote
common good, general welfare, and
support uh local economic vitality and
prosperity.
So,
uh within our bylaws and our founding
documents, um you know, we're member
governed. Jackson mentioned the
membership. Uh the membership elects a
board of up to 20 for oversight
purposes, and all of the 68 member
cities and towns may serve on our
oversight committees, including the
finance committee and audit committee.
Uh the finance committee meets monthly.
And its purpose is to advise the
treasurer and the board on the
investments, budget, and fiscal policy
of CPCNH and to receive monthly
treasurer reports, track financial
reserves,
uh position, and forecasts, and to
deliberate on rates along with the risk
management committee. And our bylaws
also call for an independent audit uh an
independent audit and an audit committee
to oversee the quality and integrity of
our accounting um and the independent
annual financial audit.
So, just to draw your attention to a
couple of other
items from our JPA,
you know, there's clear language on fair
and transparent cost allocation and cost
sharing.
So, each member's customers should pay
for costs associated with those
customers, but not costs associated with
other towns' customers.
Um,
there are pathways for voluntary
projects where cities and towns can
enter into projects and develop local
generation assets, for example.
Um,
and then provisions for the costs and
benefits of those projects being
associated only with those participating
members.
Uh, there are provisions for municipal
bonding authority and as a governmental
instrumentality, CPCNH is
uh, eligible for certain municipal
financing opportunities, including
issuance of revenue bonds.
And then there are some liability
shields for the member cities and towns
where CPCNH's liabilities and debts are
not are sort of non-recourse to the
cities and towns other than what they
have explicitly agreed to in our cost
sharing agreement. So, sort of a
firewall liability protection.
Also note that all of our books and
records are open to inspection by
members. So, at any point in time, you
know, member reps or select boards or or
what have you are welcome and invited to
reach out to inquire about um,
CPCNH's finances broadly or as they
relate to that specific member's
program.
So, some of the business considerations
and Kathleen will talk a little more
about this. Um, cash flow management is
really important for this type of
organization uh, due to the 45 to 60-day
delay in receipt of cash deposits from
the time of incurring costs for
purchasing power supply.
Um
risk management is something we focus on
very closely at CPC NH with our risk
management committee being that we
operate in this volatile wholesale
energy market that's subject to
uh changes.
And um
yeah, managing risk and managing kind
timing of cash are really key for our
business success. So, just summarize um
sort of a non-traditional business, but
definitely operates like a commercial
enterprise with you know, revenues and
expen- and costs and expenses. Um so,
funded through the sale of electricity.
Um low assets, small staff team, and
currently relying on consultants and
other external parties for some of the
operations.
Next slide. Next slide.
Thank you, Henry, for oversight of the
corporate structure. It really makes a
difference on how we do accounting
within the organization.
Can we get to the next slide, please?
Great.
So,
we as Henry mentioned, we have
cost-sharing agreements with our members
that require
um
us to be very open and clear about how
costs are reported by
uh
community by member.
And it it talks about cost um
where the costs and revenues for each
member are allocated to the member so
that not one member is um harmed by
another.
And on the fiscal reserve policy, we we
have reserve policies set at a minimum
of 30 days of operations,
a target of 120 days, we really need
about 180 days, but we can get the
remaining days through a revolving cash
flow loan as we progress.
The purposes of the financial reserves
is to help us
develop rate stability,
to avoid extra expense like interest
expense,
to secure the 30 days of operations
with a revolving loan, manage our risks,
be able to position us to do projects
with counterparties,
and also to be able to be better buyers
of energy on the open market so we would
have more options.
Next slide, please.
In the financial reporting, we actually
talk about
the finances in three or four different
ways. We have our traditional QuickBooks
online accounting
as any business would where the accounts
are
established
and reconciled to bank accounts.
And the documentation for transactions
would be like invoices from vendors and
also bills to customers.
But we also have a cash flow model
because cash flow is very important in
this business, especially as Henry said,
we are buying sometimes
60 days before we actually deliver the
power to a customer and then we have to
wait another maybe month or so before we
get paid for that energy.
And then we also have a cost of service
model because again, the the flow of
information, the flow of invoices. We
may get an invoice for today sometime in
uh February or March of 2027.
So, we have keep outside of uh
QuickBooks
a cost accounting of each month or flow
month
so that we can look at whether we charge
the right rates for the energy provided
in that month.
It's a great learning model for us.
So, in the cash flow and cost service
model we use a probabilistic financial
model that's managed by Ascend Analytics
who is one of our larger consultants,
more important consultants, who help us
plan our hedging and plan how much
energy we will be delivering.
We also use inputs like the bank records
and invoices from ISO New England.
We we use uh bill.com and QuickBooks uh
online accounting data
and we load our forecasts
um
we use we use the models to to forecast
our loads that we expect.
And we keep track
of our forecast
which changes by the week. We we check
our
uh we we set a budget at the rate
setting process time every 6 months for
the enterprise, the the the energy
portion of our budget. And we check that
to what we think will happen because
things change in the energy market. As
we know,
uh there's a lot of volatility in the
energy market right now with the um
uh costs of the war
and the delays of of um the delivery of
oil and gas.
So, we have
a lot of volatility, so we have to keep
track of what the forecast is. So, we
have a forecast model. We have the cost
of service model. We have a cash flow
model, and then we have the accounting.
So, we're keeping track of everything,
and the staff and I
do a lot of work to make sure that we're
using the source of truth for each of
these models, so that we're we're
reconcilable between all of the various
models we're looking at.
Okay, so
we also have the the the delayed bills
mostly relate to resettlements.
So, as utility reconciles how much
energy they delivered to customers,
that goes through ISO New England, and
we end up with a reconciliation or a
resettlement invoice.
We'll know what that invoice is mostly
within 90 days of the end of the month
of the flow month.
Um but then we might also receive some
smaller bills later on during the year.
Can we go to the next slide, please?
So, these are unaudited we're we're in
the process of completing an audit. Uh
BerryDunn is our outside auditing firm.
But, it gives you a sense of where our
expenses are. It's mostly in
the energy hedging uh expenses.
We try to buy our energy ahead
when we know what the prices are, so
that we can fix and reduce the risk of
providing that energy.
We hedge before we set rates
um for that period.
We have a renewable portfolio that we
have to buy based on the number of
megawatt hours that we deliver.
And that cost, or and and the volume of
wrecks that were renewable portfolio
that we have to buy is determined
sometime during the year, sometimes
after the year. So, we make our best
estimate of what that's going to be,
um,
and then sometimes they have to adjust
it in January or February of the
following year.
And we buy those wrecks,
um, mostly in the following year.
Uh, we have other costs associated with
energy, capacity, auxiliary, um, and
then the energy that where you see the
energy cost of 23 million, that is
energy that is bought
more closely to the day of service, the
day of delivery by ISO New England. We
can estimate how much it's going to be
drawn, but as you know, in January we
had a big storm that wasn't expected,
and so there was a difference between
what we hedged and what we had to buy on
the open market or rely on ISO New
England to to procure for us.
So, revenues are mostly uh, mostly
um,
the revenues come from the utilities
collect our our customer bills and then
send forms reconciling the amount of
money they're sending to us
and, um,
their customer receipts to Calpine who
does the reconciliation of our revenue
and then passes that along to us.
Or credits our accounts for that.
Operating expenses are small,
Uh mostly are
um professional services that we hire
out like uh services from Calpine and
Ascent and um
some of the other legal and accounting
services.
Salaries is our next biggest item.
Interest expense has grown because we've
had difficulty in 2025
with cash flow as most of you know, but
we can talk about that again.
So, let's go on to the next slide.
Here is a statement of activity. It's
what you would normally see as a P&L,
profit and loss. It records the activity
for the period, whatever the period is.
This is January 1 through December 31st,
2025.
We look at it in a very detailed way
every uh
month at the board level and in the
finance committee, but this is in a a
summary for you.
The ISO settlements have been more than
what we budgeted in 2025,
mostly because of an additional market
or a new market called the day's D
market. Day ahead
Henry, help me with this day ahead
something something.
>> Ancillary services initiative, yeah.
Right. Right, thank you.
And capacity and and the energy that's
bought in addition to what we've already
bought in hedges.
So, the
in in 2027, the ISO is looking at re-
organizing the capacity market, so we
may see some surprises with that next
year and we know that and we are
planning for that.
Um
so
you see here where the big components
are. The hedge, 96 million, the
costs from ISO New England 51 million.
And then RPS is our requirement based on
the megawatts of how many um res- uh
how much uh renewable energy credits we
have to buy
um for the year, which is 12.6
And then expenditures, most of the
operating expenses you see in 8050
uh toward the end is interest expenses.
And then um
our salary, taxes, and benefits are
lower than what we had anticipated in
2025
because we've been delayed a little bit
in doing the full hires. We now have
Henry as the ED, and we're hoping to
hire this year shortly the finance
director and the
um
director of power ops.
So, when we talk about net revenue we're
also we're we're another word for it is
net margin.
Another word for it is the community
reserves. So, as those accumulate
that community reserve is shared among
the members.
Um and we record that in the
um CAB report that you see each
um
about every 3 months or so we come up
with a
you know, we reconcile the CAB report.
Okay, so we're measuring here just a
period in time.
Let's go to the next slide.
The next slide is the financial
position. This is our wealth. This is
our value to the members. This is what
we have
um accumulated since uh
we began just a few years ago.
So,
um you'll see accounts receivable looks
high uh with 29 million and accounts
payable is quite high with 19 or almost
20 million. This is as of December 31st,
2026. It's actually
um
even higher now, but it will talk about
that in a minute. So,
um we have
bank accounts with um RiverCity Bank
that
are used to process our expenses and
receive the revenues from the utilities
and um manage our reserves uh for the
discretionary reserves collected for
specific
uh communities as well as the joint
reserves.
Um
we have some accrued expenses. Those
Most of that 15 million in accrued
long-term expenses
are now current expenses. That's the
wrecks that we had to buy in 2026
for 2025.
And we buy those by July. So, we'll
spend 15 or actually 13 million
uh before July buying wrecks.
And then when you look at retained
earnings, that's the accumulation of
earnings
uh or net income since we began
providing energy to communities in New
Hampshire. And then net income for the
period December 31st, 2025 for the whole
year was a minus 3 million and three
um
That could have been a lot worse had we
not
uh
done a lot of work over the last uh year
to shore up our EPRM our financial
reporting our budgeting process and our
cash management process.
Um so we can go on again this is a
financial
health wealth value for members. Let's
go on to the next.
So some things that you'll notice as you
look at our books from month month the
AR and AP
uh balance changes quite a bit. Um
because we we
before we set rates we make a commitment
to buy a certain amount of energy so
that we know what the rate needs to be
to cover our costs.
We
do um
have a lot of uncertainty with our
forecasts and it's been volatile this
past year.
We had a budget that may have not been
developed in 2025 or for 2025 using
probabilistic
um
uh forecasts.
Uh and so we were caught surprised when
resettlements came in much higher than
expected and when Daisy market got
reorganized
and uh when we had some storms or we had
high
uh energy usage in June
um because it was so hot.
Um so
the lower our reserves get the less risk
appetite we have and we fully we do more
full hedging to provide more certainty
so that we don't have um
the risk of loss. We we learned that
lesson we've we've done a good job this
year and we're beginning to climb out of
of the uncertainty that we faced at the
beginning in quarter one and two of
2025.
With healthy reserves we can become a
little bit more competitive and create
more value for our customers.
In uh liabilities, you'll see
discretionary reserves. Towns can add an
adder to their rate and create um
a reserve that they could use to address
energy needs in their town.
Um
I know one town is using some of their
reserves to do education in the
community about how to save energy.
We also have some investments in the
project called Poverty Plains, and we
have a couple others that we're working
on.
And that also shows up in that balance
sheet.
Okay, going to the next.
So, this is where
we have we start we wanted to kind of
share with you what we look at. What are
our key performance indicators
at this moment, and some of them come
from the C the cash and the
um cost of service model,
and some of them come from QuickBooks
that that we watch.
Um we watch the number of customers,
and those have have increased since we
did a refresh in March. We stopped
refreshing in 2025
to reduce the risks um until we got a
better handle on things.
Um
the difference between retail and
wholesale megawatt hours
are
um
line losses. It's it's a measurement of
how much power the utilities have put on
the line for our customers versus what
was billed. And um we keep track of of
of that. We also look at forward strip
pricing.
We do not speculate with energy
purchases for our customers.
We have to though keep on aware of what
the cost in the day ahead market or in
the future market is for energy so that
we know when is a good time to buy and
if we need more energy we can do some
additional hedging if we anticipate a
storm or very hot
week or period.
We also look at what our cogs per
wholesale megawatt hour are.
Cost of goods sold for wholesale
megawatt hour and our net margin for
wholesale megawatt hour.
And
we we've seen a lot of difference. This
document here that you're looking at the
budget is reflects what we thought we
would get when we set the rates for the
period UAP 7. That's a 6-month period.
The current is what we're estimating and
forecasting
for through the end of UAP 7
what we will where we will be.
So
you can see that we do have more
customers
than we anticipated because we didn't
know for sure whether we were going to
do the refresh in March which we did.
You can see the growth in retail and
wholesale
megawatt hours. Some of that was driven
by new customers but most of it was
driven by
storms at the end of January and early
February.
You can see that the price the forward
price is coming down. This is typical
for
where we are in April.
Prices tend to go higher in the winter
when there's a lot of demand.
And um
we're seeing
a difference in our COGS and mostly that
is due to
the daisy costs.
So that's what we keep we we watch the
hedge ratios. How are we doing? Did we
buy enough power for the customers that
we have. We are very concerned about
rate competitiveness, but also we need
to make sure that we cover the total
cost for operating. Some of our
customers some of our competitors have
had losses, but they have not accounted
for them yet and are debating with the
powers that be
about how to recover those losses.
So going on to the next
So with the cost model the C cost model,
we also keep track
going out into several years after
this year trying to see where we stand,
how we can accumulate the reserves that
we need.
The $30 million
dash line is our target and we want it
to be there within five years of
operating which would be 2028.
Um
where we are today
is at about um
uh
$18 million we've borrowed from
our
Calpine it who is facilitating our debt
right at the moment.
And
um
I guess that's probably the cash balance
we we obviously obviously don't have a
negative cash balance. We just have more
accounts payable than receivables at
this point.
So going on to the next one.
This is the
um what we think we will have in
reserves.
Right now, we're at minus 6.5 million in
terms of reserves.
Um we have been much lower
uh during the year in '25, but we were
able to see some accumulation in the
last half of '25 to recover some of the
losses that were triggered by decisions
made in December January.
And like I said, our goal is to get to
120 days of reserve plus have a cash
flow loan of about another 30 days. And
if we get to that point, then we can buy
from different um more competitive we
can get more competitive rates on our
energy that we buy through hedges. We
can
um
reduce the cost of borrowing.
Uh and and so, we can we begin to bring
a better value to our members.
Do you want to go to the next slide?
The thing to remember is that what we're
doing is creating value for members.
We are yes, accumulating joint reserves.
But we also are doing local programs
like the poverty planes and offering
communities the opportunities to
discretionary funds to accumulate
uh funds for local projects like Nashua
is doing this education program now.
We also are creating a more competitive
landscape and a more possible local
uh use of
of purchase of energy. We were able to
procure um some of our wrecks locally
this year and from some customers that
um or some people in the communities uh
that have solar, we've been able to
offer to buy their um wrecks at a
competitive price.
We do pro project development again like
Poverty Plains where communities weren't
able to work together. This was one that
we were able to bring the local goals of
several communities together and create
something very positive and that's what
you see in the side picture there.
And then we try to serve all of our
members equitably and that's a difficult
challenge. We're not yet able to service
solar customers, but we will at some
point. Um
but but each utility has a different
cost of service.
We have agreements with each utility
called POR. It's a purchase of
receivables. So they have purchased our
bad debt. Um we have really no right to
be able to collect on the bad debt of
customers who don't pay. They're the
customer of the utility. So we've come
to an agreement. I think it's 1.6% and
it might be less now of
with different utilities on how
um
bad debt is collected.
But we really always have the members in
mind.
Do you want to go to the next slide?
The governance of the organization will
be changing a bit once we get fully
staffed. Um right now we have a very
operational board. I know I have been
spending way more hours than I expected.
Uh, but
um,
as we move forward, board of directors
are looking at do the rates cover our
cost?
Are the margins set appropriately
to to bring stability and to lower our
price for members? Are we complying with
investment policy, the financial
policies, the accounting policies,
um,
the uh, um, energy risk management
policies.
And then the staff,
again, when we get the power ops and the
finance person also in place, we'll be
looking at are there counterparty risks?
Are there collateral calls? Are there
um, are we complying with the hedge
ratios? Have we bought enough energy for
the next few months?
Um,
and are there other strategies that we
can be using?
Uh, what is the weather doing?
So, our goals are the same. The board is
looking at policy and uh, budgets and
um, whether we're doing what we say we
will do for our members. And the staff
is actually operating the organization.
So, rate stability is our primary goal
and competitive. We hope to be
competitive shortly.
Um,
we want to
meet our reserve targets.
Um, we want to be, you know, well
managing our risks.
We want to diversify our credit support.
We don't want to um, have accurate
financial um, forecasts.
And um, we want to be able to meet our
cash flow requirements. We don't want
any more oops,
which is what we've had to deal with
in 2025.
So
and we want efficient operations.
And we look at other CCAs for
our targets on that.
Henry, did you want to add anything to
this?
I think that was very comprehensive
Kathleen.
I don't have anything at the moment.
Okay.
All right. So next slide I think is for
questions and answers and I have
I happy to answer any questions burning
questions people have.
Feel free nothing's nothing's beyond
asking. This is a very unique market. So
feel free to ask anything.
Great. Thanks so much Kathleen and
Henry.
I'm not seeing any questions in the chat
at the moment, but yeah, it's open Q&A.
So
folks feel free to raise your hands and
we can call on you to unmute.
You know, when we talk about the cost of
service. I'll just keep talking until
somebody tells me not to.
I think it's fascinating. I've never had
experience in the energy market, but it
is very fascinating how
it has been
um
organized
and and the various ISO New England PUC
energy department, office of consumer
advocacy, all of that plays into the
decisions we make.
Um
and and
my role as treasurer is to try to make
sure that we're providing the board with
accurate reports, all balancing. Um, I
keep a close eye on the cost of service
model. I keep and and I reconcile that
to the QuickBooks model.
The the forecast at the beginning of the
rate period is more important to me in
terms of comparing our our uh
performance. But, the forecast changes
each month as the market changes.
Great. Thanks for that. And in context,
Kathleen, there is a
a couple comments in the chat. Uh the
first is from Beth McGuinn with
Canterbury. She was asking what were the
oops of 2025 that you referenced.
We did Okay, you can go.
>> Yeah, I was going to jump on on this.
Well, well, part of the answer is
for those of you who are attending our
annual membership meeting, we do have
the results of an independent risk
audit.
Um, that's in the packet, that's public
material, that'll be presented on by the
energy authority, who's an independent
firm that we hired to conduct that
analysis. So, I'd encourage you to look
at that. And then, sort of the short
short answer is we have minimum hedge
requirements. We have to hedge certain
percentages of our portfolio and and
lock those
uh costs up into fixed price contracts.
Um, going winter of 2024 to 2025. Um,
we deviated from that and had more
exposure to the spot market, and the
spot market ended up being quite
expensive. So, essentially cost exceeded
uh revenues as a result of that, and
perhaps rates not totally covering all
of our forecasted costs as well. That's
perhaps the short answer, but would
would
happily direct folks to a report that
has a little bit more It's just It's
actually quite digestible. It's maybe a
four-page report, um, but it's a good
summary there. And I don't know if you
want to add anything to that, Kathleen.
Yeah, I think that from an accounting
standpoint, I think if we had
been doing a better job of tracking all
costs
each month, including resettlements,
including
the accrual of Rex,
including
estimating what we thought we would have
in total cost for the month or for the
flow month, wasn't really
accessible by anybody staff or board
until July of this summer.
All right, thank you. Moving on to
couple of other comments from Carol with
Hampton Falls.
In the rare case of a town leaving
CPCNH, what steps do we need to take
with the money symbol?
Yeah, I'll I'll jump in on this again.
So, under our cost-sharing agreement,
there's a provision for member exit or
withdrawal from CPCNH, and there's sort
of a few layers to that. On one layer,
there's a
maximum 36-month term from receipt of
notice of withdrawal. So, that's the
ceiling. So, CPCNH can't really obligate
a member beyond 36 months, but we are
actively managing this portfolio and it
is advantageous for members to somehow
procure power out 12, 24, or 36 months
in the future to be as competitive as
possible.
Within that 36 months, a member may
leave early, and
the requirement is just that none of
that town's cost obligations can be
shifted to another town through their
departure. So, there's a process either
by which we've purchased an obligation
on their behalf, a power contract, we
would allow that to roll off or expire.
Maybe that's a 6- or 12-month contract.
We could also unwind that contract. We
could essentially sell it back into the
market at market prices and then apply
that credit or debit to the balance of
the town.
Um, and you know, ultimately I don't
know that this is likely, but a town
could
uh deposit funds with CPCNH to cover any
costs of early withdrawal. I think most
likely the town would sort of get the
minimum waiting period sometime between,
you know, 6 months and 36 months and
then um, CPCNH after ensuring there
would be no cost shifting could return
those customers to the utility or to
another supplier um
of the town's choosing.
Great. Uh, moving on to the next
comment um, from Charlie Smith.
Uh, notice on the financial position
slide that the organization is solvent
and a positive equity of 4.8 million. I
was confused how a few slides later
there was a liquidity issue with cash
reserves. Can you explain that a little
bit more?
>> I I can take that one too if you if you
want. We
in the winter
we have again to hedge up in advance of
the month, January, February, March
April and
so so we're making a decision in
November how much to hedge and that all
costs quite a bit in the winter. So it's
seasonal that we will always have a
higher need for cash
in the winter versus the summer and
spring uh, months. There are a couple
months in the summer that get very hot
and people use air conditioning um, that
might put us over the um, estimated
uh, power forecasted power load.
Yeah, and just to build on that a little
bit. Another way to think of this would
just essentially it's negative margin in
January and February. So, if we have
positive reserves at the end of December
2025, January was a particularly
expensive month.
Um and we won't get into all the details
on this daisy charge, but there's
anyway, certain ISO forecast exceeded
uh certain ISO actuals exceeded forecast
by significant amounts for all
suppliers, but um the negative equity
position in Q1 2026 is a result of
seasonal negative margins in January to
February.
We set one rate for the whole period, 6
months. But January, February, well, the
6 months of
UAP 7 would be February, March.
So, those 2 months are more expensive to
serve than the April, May months and
June and July
July months.
All right. I'm not seeing any other
comments in the chat at this point, but
I'm keeping an eye out. There's I just
want to bring up one thing. Like at the
end of March this year this March, our
total equity for the organization is
um minus 7 million. Okay? There are some
communities that joined
CPCNH at the very beginning that had
accumulated some
uh positive balances in their
in the margin that they accumulated. But
towns like mine that joined in October
2025
have only seen negative balances. So, if
Randolph wanted to pull out right now,
we have we it's a very small town. We
have a small balance that we would owe
CPCNH so that none of the other members
would be
um affected by our departure.
Yeah, and to to build on that as well.
So,
March
uh reserve position -7 million.
Uh if you were one 3 months, positive 4
million in December heading into the
winter. Um so, and then if you look
through our forecast, we see maybe July
in the range of 1 to 2 million in
reserves. So,
you know, the the organization
experiences perhaps
you know, 15 million revenue on a
monthly basis and with seasonal cost
shifts or cost changes,
um
you know, that has an impact on the
margin. So, I think it's just it's
helpful to understand the kind of flow
of reserve, maybe a a seasonal draw in
the wintertime, building of reserves
through the shoulder months of the
summer, maybe a slight draw in a
high-cost summer month, and then
building again through the the fall
period.
Um so, yeah, just some more context
around the the way reserves evolve over
time.
We have a another question from Beth.
She's asking, uh what are we seeing for
individual opt-outs and then how is that
likely to impact overall finances
considering that these are coming in the
winter when costs are high, maybe higher
than income for customers during those
months. So, I'm I'm guess I'm saying
when there's a spike of opt-outs with a
rate change in the winter,
um
is that more of a problem because those
customers are then not participating
in the spring? I can take a first shot
at this just to say that, you know, we
conducted a um
you know, fairly large refresh for the
organization
in March and that's actually continuing
with one town into April and we're very
conservative about those assumptions and
that's really boosted our our customer
volume because the
the majority of the attrition we've seen
over the years is what we call natural
attrition. It's from like housing
turnover
um and therefore the organization had a
research policy, conducted a refresh,
and that really boosted the accounts uh
and added a lot of accounts during a
period of high margin. And that's sort
of helped balance out some of the other
opt-out activity we've seen as a result
of rate changes. So, that's Yeah, I'm
sure others will.
>> almost back to where we were in January.
We did lose customers in January in
after our January 2025
um because our rate was higher. Um but
we have now refreshed and we're almost
back up to where we were in 2025
January.
Um there's a question uh
Bruce, we I may want a little more
context on this. You're saying would
Peterborough's inadvertent enrollment
count against our reserve balance when
eventually resolved? I know I think I
know what Bruce is referring to. And
Bruce, the answer is no, it will not.
Thanks for that, Henry.
Yes, thanks.
Okay, we still have about 10 minutes
left in the session, so
still opportunity for other comments and
questions. I know it's a
deep topic. Really appreciate um
Kathleen, all the time that you've put
into educating our our members on this.
It's super important. We really need
members of the audit committee, which
only meets twice a year.
It needs to be an independent group that
kind of receives the uh audit report.
And we could That's a very light
2-hour commitment for the year.
We could use some people on the finance
committee if you if you're interested.
So, please don't hesitate to volunteer.
Yeah, thank you very much for mentioning
that. Those are very good points.
Re Beth, this has been really helpful
summary. Thanks for all the time that
went into it, Kathleen.
Agreed.
Okay.
>> all you all can ask questions. You can
send me an email. I think my contact is
available.
If anybody has any questions, I'm happy
to answer them later. Maybe everyone
wants to get out in the sunshine.
Is it?
All right. Well,
seeing none, maybe we can end a little
bit early, but thank you all for your
participation today.
And thank you once again to our
speakers, and we'll hope to see
many if not all of you at our annual
meeting, which again as a reminder is
coming right up next Thursday, the 30th.
So, hope to see you in Concord for that.
Thank you all for your time. Take care,
all. Thanks, everyone.