HomeMy Public PortalAbout11-03-1980 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, NOVEMBER 3, 1980
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 November 3, 1980 at the hour of 7 :00 p.m. in the Municipal Building
4 of said City. Chairman Ahaus presided with the following members present:
5 Messrs. Elstro, Williams, Hankinson, Welch, Parker, Carter, Mills and
III 6 Paust. Absent: None. The following business was had, to-wit:
7
8 APPROVAL OF MINUTES
9
10 Councilman Parker moved to approve the minutes of the previous meeting as
11 presented, seconded by Councilman Welch and on unanimous voice vote the
12 motion was carried.
13
14 BILLS, TRANSFERS AND INVESTMENTS
15
16 Councilman Carter moved to approve the following bills, transfers and invest-
17 ments purchased as presented, seconded by Councilman Hankinson and on
18 unanimous voice vote the motion was carried:
19
20 .APPROVE THE FOLLOWING
21 Bills in the amount of $ 426.460.67
22 Bonds & Interest Coupons 13,050.00
23 1 Payroll 112,077.94
24 •, n
25 TRANSFER FROM DEPRECIATION RESERVE FUND TO:
26 Cash Operating Fund 38,543.30
27
28 INVESTMENTS PURCHASED
29 * Cash Operating Fund 810,000.00
III30 * Bond Sinking Fund 132,685.89
31 ** Depreciation Reserve Fund 530,046.20
32 ** Cash Reserve Fund 328,898.32
33 *** Bond Reserve Fund 346,991.95
34 *** Consumer Deposit Fund 100,000.00
35
36 * Short term Treasury Notes maturing at various dates, yielding
37 7% to 10% interest
38 ** Short term Treasury Notes and C.D. 's maturing at various dates,
39 yielding 10% to 11.625% interest
40 *** Short term C.D. 's maturing 4/20/81, yielding 11.625% interest
41
42 ANNOUNCEMENTS
43
44 Chairman Ahaus noted the Board will be meeting November 12 with Mr. Arnold
45 Leas.
46
47 REPORT BY GENERAL MANAGER - Irving Huffman
48
49 General Manager reported RP&L is in need of a computer, which would cut the
50 time for the functions they are doing. The present computer will not do all
51 the jobs necessary for today under the PURPA hearings of 1978 they are required
52 to conduct a lot of studies and the present computer cannot work in these
53 languages. They are unable to compile the information and collect the data
54 needed and make the proper comparison. Mr. Huffman had requested a Committee
55 be appointed to study the need and the following served on the Committee:
56 Councilman Hankinson, Chairman, Councilmen Parker and Welch.
57
58 Councilman Hankinson reported his committee met with RP&L staff and reviewed
59 the computer situation. It was the unanimous recommendation of the Committee
60 to proceed with the authorization to receive bids for the computer as recommended.
61
62 Mr. Huffman presented a motion for authorization to receive bids on a computer
63 for November 17, 1980. Councilman Hankinson so moved, seconded by Councilman
64 Paust. and on a call of the roll the following was recorded:
RP&L Minutes Cont'd.
November 3, 1980
Page 2
1 AYES: Elstro, Williams, Paust, Hankinson, Welch, Parker, Carter, Mills
2 Ahaus (9)
3 NOES: None (0)
4
5 I&M RATE REPORT
6
7 Mr. Huffman stated I&M presented a copy of a rate filing they had made with the
8 Federal Energy Regulatory Commission. Using the year November 1, 1979 to
9 October 31, 1980, it is projected we would realize a 5% increase in the wholesale
10 rate. This would relate to a power production increase of 2% or a 1% increase
11 to customers. We have a greater fluxuation with the fuel clause than with
12 this. I&M had asked that this rate be filed retroactively; however, the
13 Commission has never authorized this in the past. The Commission has been
14 extending five (5) months suspension on all rate increases if they appear
15 to be out of reason. I&M in this case is using the example that theirs falls
16 within reason and are asking that there be only a one (1) day suspension
17 which the Commission may grant. I&M advises further rate increases may be
18 soon. Mr. Huffman feels we may expect one within six (6) months. The ruling
19 on the suspension should be in about thirty (30) days. It is RP&L's intention
20 to intervene.
21
22 We have filed for the I&M refund. The Commission has not issued an order but
23 should soon. This will be a small credit over a one (1) month period.
24
25 Mr. Huffman noted there is a meeting November 7 in Pittsburgh with GPU Holding
26 Company to discuss the possible sale of power to GPU. It appears that the first
27 of the year we will be under a new contract with I&M and we are getting close
28 to consumating an agreement with I&M to purchase reserve capacity which will
29 release unit no. 1 for production. This will be a tremendous savings to RP&L
30 as the I&M rate increase: will have. less impact.
31
32 Mr. Huffman stated he is concerned with the railroad price increase. We are
33 receiving all coal by truck at this time as it is cheaper than by rail.
34
35 ADJOURNMENT
36
37 There being no further business on motion duly made, seconded and passed
38 the meeting was adjourned.
39
40 Rick Ahaus
41 Chairman
42
43 ATTEST: JoEllen Trimble
44 City Clerk