HomeMy Public PortalAbout06-19-1978 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, JUNE 19, 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 June-19, 1978 at the hour of 7:00 p.m. in the Municipal Building of
4 said City. Mr. .Ahaus presided with the following members present: Messrs.
5 Williams, Austerman, Mills, Carter, Paust and Welch. Absent: Messrs. Elstro
6 and Merchanthouse. The following business was had, to-wit:
7
8 Councilman Williams moved to approve the minutes of the previous meeting, as
9 prepared, seconded by Councilman Mills and on unanimous voice vote the motion
10 was carried.
11 •
12 Councilman Welch moved to approve the following bills, transfers and invest-
13 ments, seconded by Councilman Carter and on unanimous voice vote the motion
14 was carried:
15
16 APPROVE THE FOLLOWING:
17 Bills in the amount of $227,832.30
18 Bonds and Interest Coupons 131.25
19 1 Payroll ($84,422.78 + $1,017.42) 85,340.20
20
21 TRANSFERS FROM CASH OPERATING FUND TO:
22 Cash Reserve Fund .68,875.83
23 Depreciation Reserve Fund 13,080.48
24 Utility Bond Sinking Fund 68,052.07
25 •
26 INVESTMENTS PURCHASED:
27 *Depreciation Reserve Fund 150,126.44
28 **Cash Operating Fund 370,0,00.00
29
• 30 *C.D. 's maturing in 1 year, yielding 7.7%
31 **Short term investments, yielding 6.5%
32
33 Chairman Ahaus announced the executive board meeting will be Monday, June
34 26 at 7:00 p.m.
35
36 Councilman Austerman reported the Policy and Planning Conunittee made a study
37 and recommends unanimously RP&L use as a method of covering an increase in
38 purchase power cost wholesale rate tracking. Before appearing for a rate
39 increase, there is a need to see results of rebates from I&M and a method
40 of rebating to the consumer. Tracking is attractive because it allows re-
41 covert' of increase cost and not make any money which is preferable at this
42 time. This may not stave off a rate increase. . It is the recommendation of
43 the committee to pass on the tracking ordinance.
44
45 General Manager Irving Huffman stated he was advised by the Washington attorney
46 Friday that the hearing was being conducted by the Federal Energy Regulatory
. 47 Commission concerning I&M wholesale rate increase request. This request would -
48 normally have been acted upon last Friday; however, the FbRC staff recommended
49 they need additional data from I&M before they take action. When the data is
50 received, a decision of no suspension, a one day suspension or up to five
51 months suspension will be made. After filing a rate increase with the Commission,
52 they have thirty (30) days to act. In this case, their not acting was action
53 as they did not have a complete file. In RP&L's contract with I&M, it is agreed
54 that there be a one day suspension, as long as the contract isn't violated.
55
56 In clarification of wholesale rate tracking, Mr. Huffman stated that fuel
57 clause adjustment was figured as being automatic. A fuel clause increase was
58 granted on submission of calculated increase of cost with the Commission having
59 the power to come in and audit at any time. A hearing was held at the Public
60 Service Commission later advising that .the fuel clause adjustment had to have
61 a hearing for each increase or decrease. The case is then set for hearing, which
62 is heard by Deputy Counselors who present the case to the Commission. Books are
63 audited by a consultant monthly to verify records and filings. At the conclu-
64 sion the Deputy Counselor rules on whether or not to grant the increase. Unless
RPjL Minutes Cont.
June 19, 1978
Page 2
1 something is found to be wrong with the filing, the increase is granted.
2 The intent of the fuel clause is to track along the increased cost of the
3 fuel. A similar thing is now being used for wholesale rate tracking.
4 Northern Indiana Public Service Company went to the Commission to try to
5 get wholesale rate tracking as other states have and the Commission agreed
6 "there should be a hearing on it, which was held. The Commission ordered
7 rate tracking to be available to those utilities which have purchase power
8 requirements. This was passed in December of 1978 and RP&L did not elect
9 to add this feature to their rate schedule so absorbed a three million
10 dollar rate increase. RP&L is now faced with a one million ninety-one
11 thousand dollar rate increase and RP&L is intending to file for wholesale
12 rate tracking to recover just this increase. Mr. Huffman has approached
13 this body to implement this feature into the rate schedule and has provided
14 an ordinance for approval.
15
16 Chairman Ahaus suggested the Policy and Planning Committee draw up a Reso-
17 lution saying any future major wholesale rate tracking decisions will come
18 to the Board of Directors.
19
20 Councilman Carter stated he feels that wholesale rate tracking is an auto-
21 matic flow through increase. As I&M increases RP&L's purchase power cost,-
22 RP$L has the right to flow through this increase to the retail customers.
• 23 Mr. Huffman said this is not true because this is not automatic. There is
24 a public hearing.
25
26 W. Huffman stated he has requested their insurance carrier to give a quota-
27 tion' adding the liability of Amtrak running over 633 line since they do
28 not have a hold-harmless clause for Amtrak.
29
30 Councilman Mills reported on a request from Bing Welch for lights on North
31 36th Street that a poll of the residents showed twelve (12) in favor and
32 three (3) opposed. The proposal is for six (6) lights on existing poles.
33 Councilman Austerman moved to make a recommendation to the Board of Works
34 for six (6) to be installed on North 36th Street, seconded by Councilman
35 Welch and on unanimous voice vote the motion was carried.
36
37 Councilman Mills suggested a request from Tim Ryder to change to Quaker
38 lighting on South. 4th Street be placed on next Monday's agenda. He noted
39 some of the personnel at RP&L are against this.
. 40
41 Chairman Ahaus stated Thursday Mr. Lees is firing up his model coal gasifi-
42 cation set-up and invited all Councilmen to attend.
43
44 There being no further business on motion duly made, seconded and passed the
45 meeting was adjourned.
46
47 Rick Ahaus
48 Chairman
49
50 - ATTEST: JoEllen Trimble
51 City Clerk