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Development and Growth of the Business: Perez L. Winchester was appointed as the first Municipal Light Plant Manager in 1891 at a salary of $500 per year. During the first year of operation, the generation plant was under construction and six miles of wire was installed to service 136 double arc street lamps. The streets of Peabody were first lighted by electricity from the new Municipal Light Plant on September 27, 1892. In the first few years of operation, there were no electric customers, since electricity was used only to light the streets. In 1894, 82 Franklin Street became the first house connected to electricity. In 1896, Henry P. Hutchinson was appointed Manager of the electric system. In addition to lighting the streets, the Light Plant served 69 customers and 7 public buildings--including Town Hall and the Central Fire Station. Electricity in 1897 cost $0.13 per kilowatt-hour; a high price compared to $0.08 per kilowatt-hour charged in 2000. In addition to providing service to the Town of Peabody, the Peabody Municipal Light Plant began serving the Town of Lynnfield around 1896. In the mid-1890's, Lynnfield was even more rural than Peabody and the few homes and businesses in Lynnfield were located many miles from the nearest source of electricity. Investor-owned electric companies refused to invest capital to electrify rural areas that produced no immediate opportunity for profit. Since the Peabody Municipal Light Plant's goal was to serve all the citizens of its community, the Plant extended wires out to the borders of Peabody. When electric wires reached the extremities of Peabody, adjacent homes and businesses located in Lynnfield found themselves near a convenient power source and an electric company that was willing to provide service. Warren D. King succeeded the one-year term of Arthur E. Jackman, who resigned in 1902 immediately following a dispute with the Municipal Light Board. Mr. King served as Manager of the Municipal Light Plant for the next 27 years--until his death-- overseeing substantial expansion of the electrical system. While serving 449 customers in 1902, the Light Plant incurred total expenses of $12,353. Also in 1902, the Municipal Light Board decided to implement a "prompt payment discount" of 5% on all bills paid by the fifteenth of the month and to charge Lynnfield customers $0.15 per kilowatt-hour, while Peabody customers would continue to pay $0.13 per kilowatt-hour. On October 1, 1907, the Light Board adopted a policy of selling light bulbs to encourage customers to use more electricity. Each lamp contained an identifying mark that assured burned out lamps would be replaced free of charge for any customer who purchased a new lamp from the Light Plant. The lamp replacement program was discontinued in 1920. Progress continued in 1912 when the Light Plant purchased its first truck to replace the horses and wagons used to patrol electric lines.
As a result of formal votes by the Town of Peabody on September 10, 1912 and the Town of Lynnfield on March 10, 1913, the towns entered into a contract
On June 25, 1914, the neighboring city of Salem experienced the worst fire in its history . The Light Plant reciprocated for previous aid given by the Salem Electric Company after the 1913 generating plant fire by supplying electric power to Salem residents over the next eleven days.
In 1916 the Light Plant served 1,567 customers and 26 public buildings while incurring $87,124 of expenses and producing $96,345 in revenue. The electric rates dropped to $0.12 per kilowatt-hour in Peabody ($0.14 in Lynnfield) and all bills were subject to a 10% prompt payment discount.
On May 27, 1925, Lineman George A. Pierce, age 29, became entangled in 2200 volt wires while working on Tremont Street, resulting in his death by electrocution. Mr. Pierce was the first of several Light Plant employees to die in the line of duty.
The street lighting system and a growing number of customers discovering the need to bring electricity into their homes and businesses, were solely dependent on the original Endicott Street steam generators. By 1927, the Light Plant needed either to build additional generation or supplement its own generation by importing power from the privately owned transmission grid servicing the large investor-owned electric utilities in New England. The choice was simple: It was less costly to import power than to add a new steam unit. The import deal was made with the only electric company in the area, Massachusetts Electric Company, initially known as the Salem Electric Light Company and, subsequently, the Salem Illuminating Company. Massachusetts Electric Company was a subsidiary of New England Electric System, an interstate conglomerate that owned the majority of electric distribution, transmission and generation in Massachusetts.
By 1929, Patrick H. Tumelty had replaced Mr. King as the manager; and the growing dependence on electric service was becoming clear. The Light Plant now served 6,571 customers who consumed over 6 million kilowatt-hours of electrical energy.
On August 12, 1935, lineman John Cotton Sr., age 42, fell from a utility pole on Endicott Street and fractured his skull resulting in his immediate death.
When James P. King succeeded Mr. Tumelty as Manager of the Light Plant in 1946, the steady increase in demand for electricity began to strain the electrical resources. The Light Plant had been forced into the position of buying more and more electricity from other companies. Although most of the power was purchased from Massachusetts Electric Company, the Light Plant also purchased electricity from local manufactures such as A. C. Lawrence Leather Company and Eastman Gelatin, a subsidiary of Eastman Kodak Company. The Light Plant still purchased small amounts of power from Eastman Gelatin in 2000.
In 1952, George B. Chase was appointed to the Manager position, succeeding the one-year term of William E. Spence, who was elected to the Lighting Commission in 1955. Mr. Spence was the only person to serve as both Manager and Lighting Commissioner. The Light Plant provided electrical service to 8,352 customers who consumed over 20 million kilowatt-hours in 1952. The annual peak usage occurred during mid-December and reached 6MW. By the mid-1950's, the Light Plant was importing more power than it could produce locally.
On January 4, 1954, the newly elected Municipal Lighting Commission took the place of the previously appointed Commission just in time to deal with the housing boom in South Peabody, which was immediately followed by a similar expansion in West Peabody.
South Peabody rapidly developed with construction of new homes. The Water Department planned to electrify the Spring Pond pumping station, and the Light Plant felt pressure to improve the quality of electric service in the area. In 1954, the Light Plant installed the South Peabody Substation, the first remote source of power in the electric distribution system. The new substation was directly connected to lines owned by New England Electric System (parent company to Massachusetts Electric Company) and metering was located at a transmission line interconnection point near the end of Longview Way.
Also in 1954, upon completion of renovations to the dismantled steam generating plant, employees relocated from offices in Peabody City Hall to the new business office and garage at 70 Endicott Street.
In 1957, construction of the North Shore Shopping Center added the single largest electric load to the rapidly increasing electricity demand, while the vast farm area of West Peabody was being developed for large tracts of single family housing construction.
Electric Switchboard Operator, Ebenezer B. King (son of former Light Plant Manager Warren D. King), while on duty at 70 Endicott Street, hanged himself from a storage room light fixture on Sunday, January 19, 1958. Shortly after this incident, the storage room was remodeled for use by the Lighting Commission as a public meeting room. In 1980, the room was used as the Manager's office; and nine years later after the Light Plant vacated the 70 Endicott Street building, it became the School Superintendent's private office. On many occasions since Eben's demise, whenever any unexplained event happened, Light Plant employees always could be overheard whispering Eben's name.
On May 22, 1958, Lineman Haskell G. Simmons (age 35), while working on Crowinshield Street in the high voltage (4160 volts) section of the utility pole, became entangled between a messenger wire and the primary conductor, which resulted in his death by electrocution.
On July 29, 1960, Edward W. McCarthy was appointed Manager to replace the retiring George B. Chase. Electricity usage was growing faster than ever. Peak usage exceeded 18MW and the 11,997 customers consumed over 72 million kilowatt-hours of electrical energy.
On September 9, 1960, Lineman John F. Cotton Jr. (age 39), while working on the corner of Wallis and Walnut Streets in the high voltage section of the utility pole, became entangled in the wires and was electrocuted. Mr. Cotton was the son of former Light Plant Lineman John Cotton Sr. who died in the line of duty 25 years earlier.
By 1961, West Peabody needed its own power source. The Light Plant responded by installing the Johnson Street Substation adjacent to existing transmission lines owned by New England Electric System.
Manager McCarthy soon realized that the combination of dramatic load growth and increasing demand for a highly reliable electric supply that had become a necessity for the community required more and more technical competency. In order to deliver the high quality product consumers demanded, the Light Plant needed to enhance system planning and to properly integrate increasingly complex high voltage electrical equipment. In 1963, as a result of a new state law designed to enhance the technical competency of staffing for municipal light plants, the Municipal Lighting Commission decided to award scholarships to encourage Peabody students pursuing electrical engineering degrees to seek employment at the Light Plant. In exchange for a partial scholarship, the student signed a contract to work for the Light Plant for a minimum of five years after receipt of an electrical engineering degree. In 1965, Bruce P. Patten (subsequently appointed Light Plant Manager in 1980) was the second student awarded the scholarship and the first to complete the program. Wesley R. Merrill (subsequently appointed Light Plant Manager in 2001) was the second scholarship recipient to complete the program.
The Town of Lynnfield was also developing at a rapid pace, which required the Light Plant to install a source of power in that section of the distribution system. The South Lynnfield Substation was installed in 1962 to relieve the overburdened electrical circuits serving the South Lynnfield area. The substation was located at the end of Pyburn Road and adjacent to transmission lines owned by New England Electric System.
The Light Plant, again, was involved in a landmark case decided by the Massachusetts Supreme Judicial Court on December 11, 1964. The Lighting Commission filed a complaint against the City of Peabody concerning the fiscal autonomy of the Light Plant, seeking to remove financial restraints that were being imposed by the Mayor and City Council. The decision,
Peabody achieved national recognition on November 9, 1965. On that day, the entire Northeast experienced a blackout due to a massive power failure originating on the border between New York and Canada. Since Peabody had its own diesel engines operating, the majority of the Peabody and Lynnfield customers had electricity-two of the very few northeastern U.S. cities to have power. The Light Plant offered to blackout Peabody for a few minutes to provide starting power to the large engines at the Salem Power Station, which lacked sufficient electricity to restart, however, the New England Power Company (a subsidiary of the New England Electric System) declined the offer. The Salem generators returned to operation after a few more hours when the local transmission system was restored.
Development of West Peabody continued to burden the electrical distribution system and the Light Plant responded by installing the Russell Street Substation in 1966. The substation was located on Russell Street in front of the gravel operation known as Essex Bituminous Company.
As the leather industry rapidly disappeared from Peabody, other industries were moved in and required heavier electricity requirements. The Light Plant addressed the increasing industrial needs by constructing the Industrial Park substation in 1967 at a site near Fifth Avenue and Rt. #128 (subsequently Jubilee Drive).
Industrial growth continued and, in 1969, the Waters Rivers substation was energized at a site formerly known as A. C. Lawrence River Works off of Pulaski Street. This site later became the location for a 115,000 volt substation, two gas turbine generators, and a high pressure natural gas metering station.
By 1970, with the advent and increasing popularity of air conditioning equipment, the peak usage period switched to the summer months, hitting a demand of 42MW. The electrical load increased so rapidly that even with the recent addition of the fourth diesel generating unit, the Light Plant had to import more and more power.
As the need for electricity continued to soar, the Light Plant had to install two new substations in 1971, the Bow Street Substation located in West Peabody near Herrick Road and the Frog Island Substation located at the end of Walker Road on land leased from Eastman Kodak Company.
A worldwide energy crisis began on October 15, 1973, prompted by a cartel of oil producing nations, who consorted to reduce the daily production of oil. The purpose of the production restriction: increase the price of crude oil and its byproducts to enhance the wealth of cartel members. This action created an economic maelstrom, known widely as "the fuel crisis", resulting in fuel shortages and higher prices for both oil and natural gas. In the longer-term, fuel-consuming nations greatly enhanced their energy conservation efforts to reduce their dependence on foreign oil. As the economic shock subsided into the worldwide order, it soon became clear that rampant electricity growth was over, slower growth trends prevailed. In addition, the steady long-term downward trend in electricity pricing was quickly reversed. The past benefits achieved by the economies of scale resulting from construction of large, centralized and increasingly more efficient generating facilities coupled with inexpensive fuel supplies, gave way to rampant electricity price escalation.
A milestone decision came in 1975 when the Light Plant resolved to undertake a massive project to gradually replace its 4,160-volt distribution system with a much higher 23,000-volt system. The voltage upgrade helped meet load growth requirements without having to add more 4,000-volt substations, which were proliferating in every neighborhood. The upgrade also greatly reduced system line losses while improving voltage regulation. Another major advantage to the new "spacer cable" construction used in the system upgrade was the enhancement of electric service reliability during adverse weather conditions. This new type of construction substantially reduced storm related power outages due to its resistance to damage usually caused by tree limbs.
By the mid-1970's, importing power became essential. Additional electric power could be obtained only through a monopoly controlled by the investor-owned utility, New England Electric System. NEES established unreasonably high prices to benefit its investors. Since the investor-owned utility operated as an interstate wholesaler and its rates were subject only to federal regulation, the Light Plant was frequently involved in litigation and federal rate hearings to block or mitigate annual price increases. As a result of one such action by the Light Plant, Peabody won the right to install its own high voltage substations and tie directly into the private transmission grid. This allowed open market purchases of imported power, and bypassed the price controls of the investor-owned monopoly.
ESTABLISHMENT OF MMWEC
Between 1976 and 1979, the Light Plant acquired--through MMWEC--ownership benefits in the Stonybrook Energy Center (oil and gas fired generators) in Ludlow, Massachusetts; Millstone #3 Nuclear Plant in Waterford, Connecticut; and the Seabrook Nuclear Plant in Seabrook, New Hampshire. MMWEC built and operated the Stonybrook generators, a facility entirely owned by municipal light plants. The acquisition of these generating facilities replaced external power supply contracts previously furnished by high-profit oriented power wholesalers. Peabody spent $150,000,000 on revenue bonds to secure direct ownership of these generating facilities. The Light Plant also used MMWEC to obtain access to Canadian hydropower, purchasing direct ownership interests in a high voltage transmission line connecting central Massachusetts with southern Canada.
In 1979, the Light Plant became the first municipal utility in New England to take advantage of its mid-1970's legal victories, building its own 115,000-volt high voltage substations. One substation off of Pulaski Street and the other off of Russell Street tie directly into the interstate transmission grid that connects electric utilities to all generators throughout New England. This allowed the Light Plant to free itself of extra charges levied by the power wholesaler, New England Electric System (NEES), which assessed higher prices for lower voltage power deliveries. Since NEES also owned the high voltage transmission lines, the Light Plant negotiated an interconnect arrangement with NEES between 1977 and 1979. As a result of negotiations with NEES, the Light Plant agreed to purchase all of NEES's 23,000-volt subtransmission easements in Peabody and South Lynnfield that otherwise would have been rendered useless due to the new higher voltage interconnections.
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