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Madison officials outline electric, water and public‑works priorities as budget season begins
Summary
Utility and public‑works leaders briefed the council on system work, rising electricity capacity and transmission costs, the MRC solar carport project, EV chargers, and completion of the water‑meter replacement program as the borough starts formal budget hearings.
Municipal staff presented the Borough of Madison’s electric, water and public‑works operations and financial outlook at a budget hearing that opened the borough’s 2025 budget discussions.
Jim Finelli (staff member leading the financial presentation) told the council the borough’s electric fund is in a stronger position than in recent years but warned of “significant issues coming up,” chiefly large increases in electricity capacity and transmission costs driven by regional market changes at PJM. Finelli said Madison has locked in block‑power contracts for roughly half its needs at lower historical prices but that rising capacity and transmission charges purchased in auctions could raise costs for the utility.
Vince Patty, electric utility superintendent, reviewed 2024 accomplishments — including substation relay upgrades, new pad‑mount transformers, underground primary work and running a new fiber line between substations — and outlined near‑term projects such as SCADA substation monitoring, relay upgrades and replacement of an aging Digger‑Derrick truck. Patty said the electric crew is eight persons and described ongoing line‑clearance and pole replacement activity.
Public Works Director Bob Duffy reviewed 2024 accomplishments and 2025 goals including garage repairs, rain garden installations, finalizing Well B rehabilitation, continuing the water‑meter replacement program and targeted water main and valve projects. Duffy told the council the department is testing battery‑powered equipment and evaluating replacement of older heavy trucks while completing smaller capital items such as signage and park equipment.
Staff also updated the council on energy‑savings projects. The MRC solar carport — a $2.2 million project — remains funded and under construction; staff said it is expected to generate long‑term savings and SREC revenue that will help offset the outlay. Patty noted EV fast chargers will be installed in Lot 3 behind public‑safety facilities within about a month and that relay upgrades at Kings Road and James Park substations are near completion.
Finelli presented financial slides showing the electric fund’s strong year‑end balances but cautioned that higher block, capacity and transmission costs are reducing near‑term fund‑balance generation. He said the fund balance provides the borough flexibility to “take a wait‑and‑see approach” while deciding whether to offset higher costs from fund balances or to consider modest rate adjustments and additional local generation projects such as further solar, battery storage or energy‑efficiency investments.
Council members pressed for more forecasting and longer‑range scenarios showing 2026–2028 outcomes under different capacity and transmission cost assumptions; several members encouraged continuing investment in local generation and efficiency projects as a hedge against volatile regional markets.
On the water side, staff reported progress on the meter replacement initiative and that the water fund’s finances have stabilized after prior deterioration. Bob Duffy and Jim Finelli said fewer than 400 meters remain to be replaced and crews are addressing the most difficult installations in house.
Councilmembers scheduled additional budget hearings on municipal and departmental budgets in February and March ahead of the April 28 public hearing and vote to adopt the municipal budget.
