1997 was an extremely interesting year for the electric utility industry in Massachusetts and throughout the United States. Starting with a movement in California, electric utility restructuring hopped to the East Coast specifically Connecticut and Massachusetts before engulfing the country in-between. The Federal Government  uickly became involved due to transmission issues. What at first was seen as a simple issue, likened to telephone and gas de-regulation, soon became a complex, all encompassing debate at the state and federal levels. Massachusetts was the second state to pass legislation (November 1997). For the most part municipal lighting plants were exempt from the legislation because they are community-owned and operated. PMLD has been involved with and monitored all of this activity and will continue to keep you informed. We have new opportunities and challenges before us and we intend to take advantage of every benefit we can on your behalf.

On the local level, we had a very busy and interesting year as we continued to upgrade the distribution system to improve the reliability of service, reduce power outages, and improve voltage. Two new 1500 kVa transformers were installed in two sections of Princeton which will soon replace the central, anti uated substation located behind our offices at 4 Town Hall Drive The line crew did all of the installation of new regulators, reclosures, poles, transformers and related e uipment which has added to the knowledge and ownership of the new system. We anticipate being fully operational on the upgraded system in early 1998. In addition to the system work, PMLD completely rebuilt the majority of Rhodes Road, all of Mirick Road Ext., accomplished some work on Calamint Hill South and Thompson Road, and ran 5 miles of new aerial insulated cable on East Princeton Road. These capital projects were in addition to routine maintenance and repairs. Nineteen new home services were connected in 1997 bringing the total number of meters we read and service to 1,487. We became fully staffed at the line crew level in '97, hiring an entry-level individual to bring the crew to a total of four.

The Commissioners restated their goal of the 4% rate of return to be earned within the existing rate structure while leveling the purchase power cost adjustment at zero. This vote retained the same rates developed in 1993. These rates are lower than our neighboring communities. Thus, Princeton remained competitively positioned throughout 1997. PMLD fully funded its depreciation account and was able to make several major capital purchases in addition to the line system work. After a bid process and review of 5 major bucket truck manufacturers, an award was made for a 1998 GMC body and bucket truck which will be delivered in early 1998. This purchase will enable PMLD to retire a 1980 bucket truck leaving the 1987 model in the fleet.

All of us are looking forward to 1998 with renewed enthusiasm. Phase II of the Hubbardston Road reconstruction should occur in the spring or fall, we hope to move into new  uarters, we will have the distributed system on line, and the challenges of restructuring will continue to bring new opportunities at every turn. With all the "new" ahead of us, we will never lose sight of our past and the solid foundations laid for us. The department would like to publicly express its gratitude for the many years of dedicated service on the Board of Light Commissioners by Les Poole who passed away in 1997. We will continue to strive to meet or exceed our customer expectations of efficient, reliable, and personal service throughout 1998 and beyond.