HomeMy Public PortalAbout08-05-1996 PROCEEDINGS OF THE COMMON COUNCIL OF THE
CITY OF RICHMOND.INDIANA.SERVING AS A BOARD
N CHARGE OF THE OPERATION OF THE RICHMOND POWER&LIGHT PLANT
MONDAY. AUGUST 5.1996
1 The Common Council of the City of Richmond, Indiana, serving as a Board in charge of the operations of the
2 Richmond Power&Light Plant met in regular session at 7 p.m. Monday,August 5, 1996, in the Council Chambers
3 in the Municipal Building in said City. Chairperson Larry Parker presided with the following Councilmembers in
4 attendance: Howard "Jack" Elstro, Etta Lundy, Bruce Wissel, Sarah "Sally" Hutton, Robert Dickman, Alan
5 Stamper,Bing Welch and Geneva"Gene"Allen. The following business was had to-wit:
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7 APPROVAL OF MINUTES OF JULY 15.1996
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9 Councilmember Hutton moved the minutes be approved, second by Councilmember Wissel and the motion was
10 carried on a unanimous voice vote.
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12 APPROVAL OF BILLS. INVESTMENTS AND TRANSFERS
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14 Upon recommendation of the Finance Committee,Councilmember Stamper moved to approve the following bills
15 for payment,seconded by Councilmember Wissel and by unanimous voice vote the motion carried.
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17 Bills Already Paid
18 Payroll and Deductions 456,177.46
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20 Investments Purchased From:
21 Cash Operating Fund 1,300,000.00
22 Bond Sinking Fund
23 Utility Bond Reserve Fund
24 Depreciation Reserve Fund 91,000.00
25 Insurance Reserve Fund
26 Consumer Deposit Fund
27 Cash Reserve Fund 168,025.00
28 Group Insurance Fund
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30 ' Total Investments 1,559,025.00
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32 Transfer from Cash Operating Fund to;
33 Cash Reserve Fund for Payment 168,025.00
34 to City in lieu of taxes
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36 Transfer from Cash Operating Fund to;
37 Depreciation Reserve Fund 91,000.00
38 , for Property&Plant
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40 Transfers from Depreciation Reserve to:
41 Cash Operating Fund
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43 Transfers from Consumer Deposit to: •
44 Cash Operating Fund
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46 Transfers from Utility Bond Reserve Fund to:
47 Bond Sinking Fund
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49 Transfers from Cash Operating to:
50 Interest and Bond Principal
51 Bond Sinking Fund
52 Cash Reserve Fund
53 Utility Bond Sinking Fund
54 Depreciation Reserve Fund
55 56
Insurance Reserve Fund
Consumer Deposit Fund
57 Interest and Bond Principal
58 End of Month Petty Cash,
59 Revenue Bonds
60 Interest Coupons Redeemed
61 Bond Coupons
62 Miscellaneous Prepaid Invoices 872,613.30
63 Total Prepaid Invoices 3,065,184.79
64 Less EFT/Diect Deposit of Payroll (81,655.97)
65 Total Prepaid Invoices 3,065,184.79
Total Bills Not Paid 807.752.58
Grand Total 3,872,937.37
RP&L Minutes Cont'd
August 5, 1996
Page 2
1 REMARKS BY CHAIRPERSON
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3 Chairperson Parker announced that the public would be allowed to speak at the end of the session and will be
4 limited to five minutes total.
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6 UNFINISHED BUSINESS
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8 There was none.
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10 STREET LIGHT COMMITTEE REPORT
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12 There was none.
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14 MISCELLANEOUS BUSINESS
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16 There was none.
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18 REPORT BY GENERAL MANAGER
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20 General Manager Irving Huffman commented that RP&L would like to present a proposal to the Board to
21 increase sales and promotional activities for the sale of electricity to residential customers. He said they are trying
22 to find out what other utilities are doing and Scott Ramsey is preparing the material and hopefully will make a
23 presentation to the Board soon.
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25 Councilmember Elstro said he read the editorial in last week's Palladium-Item and would not comment on that but
26 added that he would like for Huffman to read the letter he sent to all Councilmembers July 29 which spoke to the
27 things mentioned in that editorial.
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29 Huffman read from the letter noting his reply to Councilmember Stamper's questions: (1)total installed cost of the
30 project has not been determined nor has RP & L's suggested portion;(2)the projected heat rate will be in the low
31 8000 B.T.U./KWH range; (3)the net generated costs have not been determined at this time and the cost is only
32 important to RP & L's proportional cost and is not a factor in the overall demonstration project; (4) the projected
33 life of the plant has not been provided at this time but electric utilities generally expect 30 to 50 years of life; (5)
34 expected capacity factors have not been projected but RP&L experiences 90 percent and above on its existing
35 plant and as the equipment becomes older there are more foced outages;(6)annual projected fixed and variable
36 costs have not been determined at this point; (7) until the final cost has been determined the revenue requirement
37 cannot be calculated; (8) Unit No. 1 went on line 46 years ago and today there was a major tube leak and more of
38 these types of things will be happening due to the age of the boiler and its associated equipment.
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40 Huffman said when figures become available on the LEBS/Kalina project they will be presented to the Board in a
41 public meeting. He noted the project must be accepted by the lindiana Utility Regulatory Commission and must be
42 accepted as a financially beneficial project. He said the LIMB and the LIFAC projects which RP& L has been
43 involved with have been successful for RP& L ratepayers.
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45 He commented on the size of the project,the intent of it and the enthusiasm, stating that the Department of
46 Energy has already spent$7.7 million just on the Richmond case and this project. He further noted that Asea
47 Brown Bavaria has spent$1.6 million of its own money and in addition it has spent over$9 million of its own
48 money to develop the technology for the new type boiler A.B.B.plans to furnish for this project. Councilmember
49 Elstro commented that he thinks the newspaper is wrong in what was printed, adding that he feels it is not giving
50 the Board a chance to do its job.
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52 Councilmember Gene Allen gave an overview of the APPA conference she attended recently in Atlanta,Ga. She
53 said the overall theme was"Get Lean For The Coming Competition,"which dealt with de-regulation. She noted
54 there are three stages of competition which are cost,value added services and service,stating that contracts and
55 deal making are going to be very important.
56
57 She said three policy makers told of how their communities participate in the decision-making process and how
58 the utility keeps its promise to deliver the benefit of local control to public power consumers. She said as Board
59 members this group has an awesome responsibility, noting that it means preparing for competition and entering
60 into contracts with reduced incentive rates.
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62 NEW BUSINESS
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64 There was none.
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RP&L Minutes Cont'd
August 5, 1996
Page 3
1 PUBLIC COMMENTS
2
3 John Washington,2103 South L Street,asked President Parker if he had forgotten his meeting with the Finance
4 Committee and President Parker responded that he had been mailed the information but Washington said that
5 was not what he asked for. He questioned again the difference in the rates for Centerville and Richmond and
6 Huffman told him the cost of services is different, adding that Centerville is in need of a rate increase. He also
7 questioned the cost of coal and President Parker said within 30 days Washington will have the State Board of
8 Accounts recent review of RP&L. He said this Board has seen it and it will become public within 30 days.
9 Washington also questioned as to whether or not Huffman's sitting on the IMPA Board was a conflict of interest
10 and President Parker answered that he felt it was not.
11
12 President Parker directed Councilmember Stamper to set up a meeting with Herschel Philpot,financial manager
13 of RP&L and Washington and have all the members of the Finance Committee present.Councilmember
14 Stamper said he would do so.
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16 ADJOURNMENT,
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18 There being no further business,on a motion duly made,seconded and passed the meeting was
19 adjourned.
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26 Larry Parker,Chairperson
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30 ATTEST:
31 Norma Schroeder,City Clerk
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