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HomeMy Public PortalAbout07-05-1983 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, JULY 5, 1983 1 The Common Council of the City of Richmond, Indiana, serving as a Board in 2 charge of the operation of the Richmond Power & Light Plant, met in regular 3 session July 5, 1983 at the hour of 7:00 p.m. in the Municipal Building of 4 said City. Chairman Welch presided with the following members present: 5 Messrs. Elstro, Williams, Ms. Henry, Hankinson, Mills, Parker, Carter and 6 Paust. Absent: None. The following business was had, to-wit: 7 8 APPROVAL OF MINUTES OF JUNE 20, 1983 9 10 Councilman Hankinson moved to approve the minutes of the previous meeting , 11 as published, seconded by Councilman Mills and on unanimous voice vote the 12 motion was carried. 13 14 APPROVAL OF BILLS 15 16 Councilman Hankinson moved to approve bills in the amount of $571,684.48, 17 seconded by Councilman Carter and on unanimous voice vote the motion was 18 carried. 19 20 REMARKS BY CHAIRMAN 21 22 Chairman Welch announced a trip to Piqua, Ohio on Thursday afternoon to 23 examine the district heating project underway there. Any Board member wish- 24 ing to go should be at RP&L at 11:15 for lunch and they will be leaving for 25 Piqua at 12:00. This project is similar to the project between Hills Floral 26 Products and Richmond State Hospital. Attorneys Paul Hirst and Ed Anderson 27 will be going to work on contracts. With RP&Las the mediator, they will 28 be entering into contracts with State Hospital and then with Hills to sell 29 the energy obtained. As more district heating islands develop, they will 30 have to be put together. Mr. Huffman explained that as mediator, the energy 31 will be sold to RP&L and they will sell it to those needing it. This will 32 be done under contract. He noted district heating projects are common in 33 Europe. Projects of this type need continuity and other customers have indi- 34 cated they would like to buy energy. This energy is cheaper than producing 35 it oneself. RP&L will put money into the project; however, the money will 36 be recovered through the contract. Mr. Huffman noted they met with the con- 37 sulting engineer last week and the approximate cost of the project will be 38 $800,000. Hills will be putting up $200,000 and the amount of the grant is 39 $500,000. Mr. Huffman stated the figures will come before the Board before ' 40 RP&L becames involved in this project. Mr. Huffman stated there will be no 41 increase in the electric rates of the rate payers due to this project. 42 43 Councilman Parker noted it was his understanding that the reason RP&L is 44 getting involved in this project is so that, if any other industry ever 45 wants to participate, the contract will not be just between State Hospital 46 and Hills. 47 48 Chairman Welch noted the Executive Meeting will be July 25 at 7:00 p.m. at 49 RP&L. 50 51 REMARKS BY GENERAL MANAGER 52 53 In discussing district heating, Mr. Huffman noted that RP&L throws more than 54 .1/3rd of the energy generated in the burning of coal out in wasted heat through 55 their cooling towers. This is necessary as the steam would have to be con- 56 densed back to hot water to put it back in the boilers. There are many com- 57 panies that emit heat. With the high cost of energy now and the better use of 58 heat exchangers, this wasted heat can be converted for use. This could be pur- 59 chased through a district heating project. These projects will have to be 60 studied to see if they are financially feasible. Chairman Welch stated that, 61 if RP&L is going to be the coordinator and manager of district heating, it is 62 anticipated that during the life of the contracts it will make a profit which 63 will be beneficial to the rate payers of RP&L. This will have to be held as 64 a separate operating division because of Public Service Commission of Indiana. RP&L Minutes Cont'd. July 5, 1983 Page 2 1 ADJOURNMENT 2 3 There being no further business on motion duly made, seconded and passed the 4 meeting was adjourned. 5 6 Bing Welch 7 Chairman 8 9 ATTEST: JoEllen Trimble 10 City Clerk