HomeMy Public PortalAbout12-03-1979 PROCEEDINGS OF THE COMMON COUNCIL OF THE
CITY OF RICHMOND, INDIANA, SERVING AS A BOARD
IN CHARGE OF THE OPERATION OF THE RICHMOND POWER
AND LIGHT PLANT, DECEMBER 3, 1979
1 The Common Council of the City of -Richmond, Indiana, serving as a Board in charge
2 of the operation of the Richmond Power & Light Plant, met in regular session Decem-
3 ber 3, 1979 at the hour of 7:00 p.m. in the Municipal Building of said City. Chair-
4 man Ahaus presided with the following members present: Messrs. Elstro, Williams,
5 Paust, Whitesell, Mills, Carter and Welch. Absent: Austerman. The following
6 business was had, to-wit:
III 7
8 Councilman Williams moved to approve the minutes of the previous meeting as prepared,
9 seconded by Councilman Mills and on unanimous voice vote the motion was carried.
10
11 Councilman Carter stated, although we haven't had an opportunity to look at the bills,
12 he would move to approve the following bills as presented and investments as present-
13 ed, seconded by Councilman Welch and on unanimous voice vote the motion was carried:
14
15 APPROVE THE FOLLOWING:
16 Bills in the amount of $ 817,947.83
17 Bonds & Interest Coupons - 0 -
18 1 Payroll 95,968.98
19
20 - INVESTMENTS PURCHASED
21 * Cash Operating Fund 350,000.00
22 Cash Operating Fund 80,291.66
23 ** Cash Reserve Fund 69,708.34
24
25 * U.S. Treasury Notes (repurchase agreement) maturing 1/21/80,
26 yielding 11.5%
27 ** U.S. Treasury Notes (repurchase agreement) maturing 1/24/80,
28 yielding 12.375%
29
30 Chairman Ahaus announced there will be no executive meeting on the fourth Monday as
1 it is Christman Eve.
2
3 General Manager Irving Huffman presented copies of the 1970 budget. Utility budgets
4 are complex budgets since it contains generation of power and a lot of variables
35 which there is no control over, especially purchase power. The estimate of kilowatt
36 hours is based upon a 2.3% increase. The total income is $21,637,300. On the expense
37 side, this past year there has been a 64% generation/36% purchase mix and the projec-
38 tion is for a 65/35 mix. The projection cost for coal is averaged at $30.00 per ton
39 delivered. Inflation is factored in the projections. An average of 15% increase for
40 the year from I & M is projected. The total production cost is $15,214,750. The total
41 transmission/districution expense is $854,765. Total sales expense $93,300. Total ad-
42 ministrative and general expense $1,680,900. Total operation expense $21,029,276.
43 Net income for the end of the year would be $608,024. Total other payments out of net
44 $1,696,000. The loss of net earnings would be $1,087,987. Under the capital budget
45 one of the items required by law is structures and plant building for PCB's. A SCADA
46 system could monitor different usages by classes of customers. The total capital
47 budget projection is $2,044,700. Mr. Huffman presented a proposed rate increase of
48 19.58%. To work as a complete non-profit utility a minimum requirement of 6.83% is
49 needed. Mr. Huffman pointed out the other utilities have asked for approximately the
50 the same percentage increases. Mr. Huffman noted the Board will not at this time pass
51 the rate increase, but requested they pass the budget. Councilman Carter noted that,
52 historically, the money shown in the budget for capital acquisitions each year has not
53 been spent but only about 50% of it. He further stated he did not want to approve this
54 type budget, but would request Mr. Huffman come to this Board for these expenditures,
55 when necessary. It was noted there is a $10,000 limit oneach expenditure without
I6 receiving bids.
7
8 Councilman Paust moved for adoption of the regular operating budget, seconded by
59 Councilman Williams and on a call of the roll the following was recorded: Ayes: Elstro,
60 Williams, Paust, Whitesell, Mills, Carter, Welch and Ahaus. Noes: None. The vote
61 being eight (8) to zero (0) in favor of the motion. This budget has total income of
62 $21,637,300 with expenses of $21,029,276.
63
RP&L Minutes Cont.
December 3, 1979
Page 2
1 Chairman Ahaus stated the second part of the budget is the Capital Improvement
2 Budget of $2,044,700.
3
4 Chairman Ahaus suggested putting the question of control limits to the Executive
5 Committee which consists of the Chairman and each of the Committee Chairmen as
6 well as three (3) staff members of Management to study and bring a recommendation.
7
8 Councilman Welch moved to approve the Capital Improvement Budget for 1980 which
9 totals $2,044,700, seconded by Councilman Williams and on a call of the roll the
10 following was recorded: Ayes: Elstro, Williams, Paust, Whitesell, Mills, Welch and
11 Ahaus. Noes: Carter. The vote being seven (7) to one (1) in-favor of the motion.
12
13 General Manager Huffman told of a meeting with the PSCI Chairman Wallace and one of
14 the other commissioners in the Public Counselor's Office this past week to talk about
15 data acquisition ordered by PURPA and the Commission. It will be necessary to engage
16 the services of a "cost of service" man, which Mr. Huffman will present at the next
17 meeting. A study will be made to show why RP&L's rate structure is the way it is.
18 Residential and industrial areas will have to be justified.
19
20 There being no further business on motion duly made, seconded and passed the meeting
21 was adjourned.
Rick Ahaus
Chairman
ATTEST: JoEllen Trimble
City Clerk