HomeMy Public PortalAbout01-03-1983 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, JANUARY 3, 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 January 3, 1983 at the hour of 7:00 p.m. in the Municipal Building
4 - of said City. Vice Chairman Hankinson presided with the following members
5 present: Messrs. Elstro, Williams, Ms. Henry, Welch, Mills, Parker, Carter
6 and Paust. Absent: None. The following business was had, to-wit:
7
8 APPROVAL OF MINUTES OF DECEMBER 20, 1982
9
10 Councilman Williams moved to approve the minutes of the previous meeting as
11 mailed in the agenda, seconded by Councilman Mills and on unanimous voice
12 vote the motion was carried.
13
14 APPROVAL OF BILLS
15
16 Councilman Carter moved that the bills in the amount of $256,321.52 be approved,
17 seconded by Councilwoman Henry and on unanimous voice vote the motion was
18 carried.
19
20 ELECTION OF CHAIRMAN AND VICE CHAIRMAN FOR 1983
21 .
22 Councilman Paust moved the nomination of Bing Welch for Chairman of RP&L for
23 1983, seconded by Councilman Mills and on unanimous voice vote the motion was
24 carried.
25
26 Councilman Mills moved the nominations be closed, seconded by Councilman Paust
27 and on unanimous voice vote the motion was carried.
28
29 Councilman Mills nominated James Hankinson for Vice Chairman, seconded by
III 30 Councilman Welch and on unanimous voice vote the motion was carried.
31
32 Councilman Carter moved the nominations be closed, seconded by Councilman
33 Mills and on unanimous voice vote the motion was carried.
34
35 COMMITTEE ASSIGNMENTS FOR 1983
36
37 Chairman Welch made the following committee assignments for 1983:
38
39 Finance Committee - Jim Hankinson, Chairman, Jim Carter, Robin Henry
40 Employee Relations - Ken Paust, Chairman, Robin Henry, Marion Williams
41 Street Light Committee - Larry Parker, Chairman, Jack Elstro, Ken Mills
42 Executive Committee - Jim Hankinson,Ken Paust, Larry Parker, 3 RP&L
43 management personnel, Chairman of the Board
44 Bing Welch.
45
46 REPORT BY GENERAL MANAGER
47
48 Indiana & Michigan Electric Co. rate settlement
49
50 General Manager Irving Huffman noted RP&L has been working for some time on a
51 rate settlement with I&M with the help of R. W. Beck & Associates from the
52 engineering standpoint and Spiegel & McDiarmid from the legal standpoint. An
53 agreement has been worked out and points of Attorney Joe Van Eaton's letter of
54 December 30 were covered. On July 29 the first step of a two step increase
55 that I&M had petitioned for was put into effect. At that time the increase
56 was $1.66 per 1,000 kwh of use to our customers. The second step to become
57 effective December 30, 1982 is $1.48 per kwh of use to our customers. The
58 second step has to go into effect; however, an agreement was worked out on
59 December 17 lowering the amount from $1.48 to $.65. The Federal Energy
60 Regulatory Commission has not given final approval so the Indiana Public
61 Service Company can act upon it; therefore, the higher rate will have to be
62 implemented for a few days. This amount will be refunded back to the customer.
63 The initial increase filed by I&M was going to be $888,985 as the first step
64 and $714,874 for the second step at $1.48 which would be a total of $1,603,859.
RP&L Minutes Cont'd.
January 3, 1983
Page 2
1 Under the settlement rate, the first increase would be left intact but the
2 second step would be reduced to $331,015 for a total of $1 ,220,000. The
3 total amount did not include spent nuclear fuel disposal costs; however, the
4 settlement rate does include these costs. I&M proposed a demand charge of
5 $13,81 per kw, but under the settlement the demand charge will be $12.20.
6 I&M proposed a service charge of $1,126 which will be $1 ,040. The energy
7 charge proposed was 11.02 mills per kwh and under the settlement is 11.66
8 mills per kwh; however this increase reflects the shift in spent nuclear
9 fuel disposal costs from the fuel adjustment clause to base rates lowering them.
10
11 Four conditions RP&L was required to meet were: (1) I&M wanted RP&L to sign
12 a blanket release releasing them from all claims concerning this docket. 'RP&L
13 did not want to do this unless they got a similar agreement from I&M, which
14 was agreed upon. (2) I&M agreed to a limited moratorium on its next rate
15 increase that they will not file for an increase with an effective date prior
16 to January 1, 1984. RP&L in return agreed not to seek to have a rate with an
17 effective date of January 1 , 1984 suspended for more than two months. (3)
18 FERC staff had tied in the McDowell County Coal Case, which alleges I&M
19 charged their own company coal prices from their own mines up to $95. per ton.
20 The coal in question was basically for the east coast utilities. Very little
21 of this was charged to municipal systems so there will be little or no refund
22 to us. If there is any ruling in favor of municipal systems for refunds, our
23 option is still open; however, we agreed we would not take up to the first
24 $182,000. (4) I&M and RP&L will support this case to FERC to get the case
25 moving so PSCI can act timely on the rate tracking. The Commission did not
26, act timely so it was necessary for PSCI to catch up which required us to file
27 for the higher rate tracking charge for a few days.
28
29 On the agenda was a motion authorizing the General Manager to properly sign
30 the necessary documents involved in the Indiana & Michigan Electric Co.
31 Docket No. ER82-557-000 rate settlement.
32
33 Councilman Williams so moved, seconded by Councilman Elstro and on unanimous
34 voice vote the motion was carried.
35
36 REQUEST TO RECEIVE BIDS
37
38 General Manager Huffman requested receiving bids for (a) two 19,500 minimum
39 GVW cab and chassis with diesel engine (b) one 10,000 minimum GVW cab and
40 chassis with diesel engine (c) one 1983 one-ton pick-up truck with diesel
41 engine (d) one 1983 dump chip body for 19,500 GVW cab and chassis (e) one 1983
42 fiberglass utility body for 19,500 GVW cab and chassis and an aerial device
43 (telescoping type) (f) one 1983 fiberglass utility body for a 10,000 GVW
44 cab and chassis.
45
46 On the agenda was a motion authorizing the general manager to receive these
47 bids at the next meeting.
48
49 Councilman Mills so moved, seconded by Councilman Carter and on unanimous voice
50 vote the motion was carried.
51
52 ADJOURNMENT
53
54 There being no further business on motion duly made, seconded and passed the
55 meeting was adjourned.
56
57 James Hankinson
58 Vice Chairman
59
600 ATTEST: JoEllen Trimble
61 City Clerk