HomeMy Public PortalAbout08-07-1978 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, AUGUST 7, 1978•
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 August 7, 1978 at the hour of 7:00 p.m. in 'the Municipal Building
4 of said City. Councilman Ahaus presided with the following members present:
5 Messrs. Elstro, Williams, Merchanthouse, Mills, Carter, Paust and Welch.
6 Absent: Councilman Austerman. The following business was had, to-wit:
III7
8 Councilman Welch moved to approve the minutes of the previous meeting as
9 prepared, seconded by Councilman Mills and on unanimous voice vote the
10 motion was carried.
11
12 Councilman Welch noted the door to the Council offices was locked and he was
• 13 unable to review the bills before the meeting. Councilman Welch moved to
14 approve the bills pending review., seconded by Councilman Carter and on unani-
15 mous voice vote the motion was carried:
16
17 APPROVE THE FOLLOWING:
18 Bills in the amount of . $1,093,359.84
19 Bonds and Interest Coupons. 198,080.53
20 2 Payrolls 168,380.17
21
22 INVESTMENTS PURCHASED:
23 * Depreciation Reserve Fund 35,529.04
24 * Cash Reserve Fund 67,105.88
25 • * Bond Sinking Fund 69,260.44
26 ** Cash Operating Fund 560,000.00
27 *** Cash Operating Fund 200,000.00
28
_29 * C.D. maturing 1/5/79, yielding 7.5%
30 ** U.S. Treas. Notes maturing 8/18/78, yielding 6.93%
III 31 *** C.D. maturing 9/15/78, yielding 7.25%
32
33 Councilman Mills presented a map showing areas in Richmond denoting lighting
34 as to whether it is adequate, inadequate, being installed, turned down new
35 lighting and proposed lighting. He stated eighteen (18) lights will be removed
36 from the thirty-six (36) now on Williamsburg Pike as the formula used created
37 too many lights in this area. Along with that, twenty (20) mercury vapor
38 lights will be removed so Richmond will be saving $1800.00
39
40 Councilman Paust reported that within the next month, the State will be
41 installing light fixtures to light the three (3) interstate intersections
42 leading into Richmond, The decision will have to be made later to put in
43 high or low pressure lights. •
44
45 General Manager Irving Huffman reported on the I&M Rate Case. He stated that
46 on May 13, 1972 IFM filed with the Federal Power Conunission for a rate increase.
47 For a. long period of time, RP&L has been struggling to obtain an interchange
48 contract to allow good operation. This contract has been worked out and it
49 has been necessary for the Federal Energy Regulatory Commission to approve it.
50 Apparently this contract has been accepted although official notification has
51 not yet been received. This order will state refunds will be made in a thirty
52 (30) day period. Mr. Huffman contacted I&M to go over these calculations to
53 work out any descrepencies that may occur, prior to their filing with the FPC.
54 The overcharge should be received by the early part of September. RP&L has
55 received $408,000.00 in refunds from January 13, 1973 to the latter part of
III 56 August 1973. From the period of October 1973 there was a certain amount of
57 overcharge representing the difference in demand between 60% rachet and 100%
58 rachet. RP?L entered into I&M's retail rate case and had the 100% rachet
59 thrown out, which put them back on the 60% rachet, at which time too much of
60 an overcharge was not being paid. Effective January 1, 1977 the interchange
61 contract was negotiated and an agreement from I$M that refunds will be made
62 back on a recalculation of the interchange contract vs the wholesale contract
63 billing had been made under. Prior to January 1, 1977 a one million dollar
RP&L Minutes Cont.
August 7, 1978
Page 2
1 settlement was negotiated. RP&L was entitled to more refund, however, they
2 "bought" an interchange contract, which -was profitable and practical for them
3 to do. Most of the refund will be based upon the overcharge between the two
4 methods of calculation since January 1, 1977. Deductions and expenses will
5 be taken from the refund, before passing on this refund to the customer. It
6 is difficult to say at this time how much the refund will be, but should be
7 in excess of one and a half million dollars. . This represents roughly more
8 than one month's usage of electricity. Future use will be credited to off-set
9 rather than issuing a check.
10
11 Mr. Huffman reported R. W. Beck has completed their preliminary power supply
12 study and it should be available next week.
13
14 Mr. Huffman reported there was an initial meeting of the joint agency group
15 made up of municipal electric utilities that form the Indiana Municipal Electric
16 Association and he has been named Chairman. Mr. Huffman invited Board members
17 to attend these monthly meetings held at Greenfield on the„third Thursday of
18 the month.
19
20 Mr. Mills reported he has received a request for street lights in the alley
21 between No. 15th and 16th between "A" & "B" from Ms. Beemer.
22
23 Chairman Ahaus announced the date of the next.Executive meeting will be announced
24 later.
25
26 There being no further business on motion duly made, seconded and passed the
27 meeting was adjourned.
28
29 Rick Ahaus
30 •
Chairman
31
32 ATTEST: JoEllen Trimble
33 City Clerk