HomeMy Public PortalAbout07-01-2002 PROCEEDINGS OF THE COMMON COUNCIL OF THE
CITY OF RICHMOND,INDIANA,SERVING AS A BOARD
IN CHARGE OF THE OPERATION OF THE RICHMOND POWER&LIGHT PLANT
_MONDAY,JULY 1,2002
The Common Council of the City of Richmond,Indiana,serving as a Board in charge of the operations of the
Richmond Power&Light Plant met in regular session at 7 p.m.Monday,July 1,2002 in the Council Chambers in the
Municipal Building in said City.Chairperson Larry Parker presided with the following Councilmembers in attendance:
Howard"Jack"Elstro,Etta J.Lundy,Karl Sharp,Bing Welch,Bruce Wissel,Phil Dickman and Sarah"Sally"Hutton.
Paul Combs was absent.The following business was conducted:
ROLL CALL
Eight present.
APPROVAL OF MINUTES
The minutes of the June 17,2002 meeting were approved on a motion by Councilmember Hutton,second by
Councilmember Dickman and the motion was carried on a voice vote.
APPROVAL OF BILLS,INVESTMENTS AND TRANSFERS
Upon recommendation of the Finance Committee,Councilmember Hutton moved to approve the following bills for
payment,seconded by Councilmember Welch and the motion was carried on a voice vote.She added that almost$17
million of that was investments.
Bills Already Paid:
Payroll and Deductions $ 270,759.29
Investments Purchased From:
Cash Operating Fund
Bond Sinking Fund
Utility Bond Reserve Fund
Depreciation Reserve Fund 14,597,073.60
Insurance Reserve Fund 297,452.17
Consumer Deposit Fund
Cash Reserve Fund
Group Insurance Fund
Total $ 14,894,525.77
Telecommunications Division Investments Purchased From:
Cash Operating Fund
Transfer from Cash Operating Fund to:
Cash Reserve Fund for Payment
To City in lieu of taxes -
Transfer from Cash Operating Fund to:
Depreciation Reserve Fund
For Property&Plant
Transfers from Depreciation Reserve to:
Cash Operating Fund
Transfers from Consumer Deposit to:
Cash Operating Fund
Transfers from Utility Bond Reserve Fund to:
Bond Sinking Fund
Transfers from Cash Operating to:
Interest and Bond Principal
Bond Sinking Fund
Cash Reserve Fund
Utility Bond Sinking Fund
Depreciation Reserve Fund
Insurance Reserve Fund
Consumer Deposit Fund
Interest and Bond Principal
End of Month Petty Cash
Revenue Bonds
Interest Coupons Redeemed
Interest Coupons Redeemed
Bond Coupons
Miscellaneous Prepaid Invoices $ 175,929.68
Total Prepaid Invoices: 15,341,214.74
Total EFT/Direct Deposit of Payroll: (92,197.06)
Total Prepaid Invoices: 15,249,017.68
Total EFT Transfers: 1,275,974.74
Total Prepaids plus EFT Transfers: 16,524,992.42
Total Bills Not Paid: 947,250.30
Grand Total of Bills to be approved: $ 17,472,242.72
RP&L Minutes Cont'd
July 1,2002
Page 2
REMARKS BY CHAIRPERSON •
Chairperson Parker had no remarks.
UNFINISHED BUSINESS
There was none.
STREET LIGHT COMMITTEE REPORT
Councilmember Elstro had no report.
REPORT BY GENERAL MANAGER
General Manager David Osburn requested authorization to file changes to the IS&LPS Optional Coincident Peak rates
with the Indiana Utility Regulatory Commission stating that they are the industrial service and large power service
optional coincidental peak rates.Giving a brief rundown explaining the background,Osburn said that in 1996 RP&L
had a rate case with the Commission and a group of industrial customers intervened and one of the things that was
settled is that they requested some additional rate offerings referred to as alternate rates.He said RP&L worked with
its rate consultant at that time to provide some alternate rates for the industrial customers.What was adopted were some
rates that gave the customers an incentive to reduce their peak demand and in doing this it is also intended to help
reduce the utility's system demand.He said the result is that RP&L shares the savings with the customers.
Osburn said in the last year or so there were a fair amount of customers which got on the rate and it was also in the last
year that the utility decided to do some analysis to see how it was doing.The result of that was that it was found that
inadvertently the rate had an error in it and the energy portion of the rate had been changed and it was too low.He
explained that the rate is designed entirely to provide an incentive for the demand portion of the bill and what this had
done was to provide a month long savings on the energy portion as well.He added that a lot more money was being
paid out than what was being seen as a savings for the utility.
Given the nature of this,RP&L contracted with IMPA to do a rate analysis and it concurred that a rate adjustment was
necessary to correct that error.He said it was felt that the time is right to make the change and it was filed with the
Commission by IMPA and representatives of RP&L have already met with all the customers that are impacted by this
rate and the overall response was favorable with this situation.He said that being done,the utility is ready to proceed
with this and get the approval of this Board before any rate changes are made with the Commission.He added that it
only affects about 14 customers on this alternate rate.
Councilmember Welch moved to authorize the General Manager to file the requested changes,second by
Councilmember Dickman and the motion was carried on a voice vote.
Osburn said he had distributed a brief summary of House Bill 1001 in the short session,pointing out that it gives a
bullet point list of the changes made.He said there were two that would directly impact RP&L,explaining what both
would do when they go into effect in January 2003.
Osburn also said he had tentatively scheduled Mobotec to make a presentation on its process and proposal August 14.
He stated that he had purchased SO 2 allowances for$157 which he felt was a good price,adding that if the price
continues to be lower he may ask for another blanket approval for more allowances.
NEW BUSINESS
There was none.
ADJOURNMENT
There being no further business,on a motion duly made,seconded and passed,the meeting was adjourned at 7:15 p.m.
Larry Parker,Chairperson
ATTEST:
Norma Schroeder,Clerk