The Ipswich Electric Light Department has submitted Article 22 on the warrant at the 2023 Spring Town meeting. This article will authorize the Electric Light Department (ELD) to borrow $5,000,000
from the United States Department of Agriculture’s (USDA) Rural Energy Savings Program
(RESP). Credit will be accessed incrementally by the ELD, based on annual projections for real
expenses until the full amount of the loan ($5 million) has been exhausted. Funds will be utilized
in accordance with program requirements, as outlined by 7 CFR Part 1719. Repayment of
borrowed funds occurs interest-free over ten years.

The principal purpose of the loan is to provide working capital to develop and implement a
financing program available to customers of the Department. Loan disbursements provide funding
that is not derived from ratepayer revenues. The ELD re-lends these “below-the-line” funds to
customers, providing them with upfront capital for eligible property improvements; the ELD then
recovers the investment incrementally via a tariff applied directly to the customer’s monthly
electric bill. The financing program allows expanded access to energy efficiency and climate
resilience improvements, benefiting individual customers and the community as a whole.
It is anticipated that these funds are available with 0% interest to the ELD; there is no impact on
the electric rate. (2/3rds majority, ballot vote).

Electric Subcommittee Recommend

Finance Committee Recommend: 9-0

Select Board Recommend: 4-0