HomeMy Public PortalAbout05-15-1978 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, MAY 15, 1978
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 May
3 15, 1978 at the hour of 7:00 p.m. in the Municipal Building of said City. Mr.
4 Ahaus presided with the following members present: Messrs. Elstro, Williams,
5 Austerman, Merchanthouse, Mills, Carter, Paust, and Welch. Absent: None. The •
6 following business was had, to-wit:
7
8 Councilman Carter 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.
III 10
11 Councilman Carter moved to approve the following bills, transfers and investments,
12 seconded by Councilman Welch and on unanimous voice vote, the motion was carried:
13
14 APPROVE THE FOLLOWING:
15 Bills in the amount of $ 471,072.47
16 Bonds and Interest Coupons 16.2.5
17 1 Payroll 82,634. 78
18
19 TRANSFERS FROM CASH OPERATING FUND TO:
20 Cash Reserve Fund 68,875.83
21 Depreciation Reserve Fund 32,092.65
22 Utility Bond Sinking Fund 68,052'.07
23
24 INVESTMENTS PURCHASED:
25 *Cash Operating Fund 230,000.00
26 **Cash Operating Fund 170,000.00
27
281 *Short term Treasury Notes, yielding 6.3%
29 **Short term Treasury Notes, yielding 6.5%
30 •
31 Chairman Ahaus announced the Executive meeting will be Monday, May 22 at 7:00 p.m.
32 at RP&L.
33
34 Councilmen Austerman and Ahaus attended the American Public Power Association's
35 Governing Board seminar in Atlanta last weekend. Councilman Austerman reported
3,6 everyone faces bulk power increases as the major factor in the cost of electricity.
37 From 1972 through 1977 the cost of generation has gone up sixty percent (60%) and in
38 the next five (5) years there will be an increase of another fifty percent (50%)
39 which will constitute a one hundred percent (100%) increase in consumer complaints.
40 The answerer lie in conservation, co-generation, joint ventures with other utilities
41 and load management. Conservation and load management are the cheapest. Cities
42 should look at ordinances that would mandate new developments to follow energy
43 conservation programs. We have two (2) tremendous problems in meeting demand -
44 (1) capital requirements (cost to build new generation) and (2) environmentalists.
45 It is. imparative to get the: facts to the people that the energy problem is real.
46 The solution lies in supply and demand. Public relations and management must be
47 priorities.
48
49 Concerning the purchase power increase General Manager Ixving Huffman noted the cost
50 of RP&L's generation is fixed; however, the increase in fuel is a problem. The
51 interchange contract with I&M spells out when Cook II goes on line an increase is to
52 be received. This increase was thought to be seventeen percent (17%) ; however,
5.3 RP&L's attorney in Washington reports this will be a twenty-seven percent (27%)
54 increase which will make the bill go up $1,090.335. over the past year. This will
55 be before the Federal Power Commission, and also involves Northern Indiana Public -
56 Service Company.
57
58 Mr. Huffman feels this is an extremely high increase and will end up in front of the
59 Federal Energy Regulatory Commission. Hopefully with the interchange contract and
60 since the Northern Indiana Public Service Commission is also involved, this can be
61 negotiated instead of litigated.
RP&L Minutes Cont.
May 15, 1978
Page 2
1 RP&L has been working with Old Ben Coal Company and the original price for the
2 reclamation of the ground was $2.70 a ton. That figure will be lowered to the
3 low one dollar bracket. Negotiations with Old Ben Coal Company are pretty well
4 under way for a long term contract for coal supply.
5
6 About ten (10) days ago Mr. Huffman went to Washington and met with the Department
7 of Energy along with Mr. Arnold Leas to discuss Richmond's role and interest
8 would be in the Leas Brothers Gasification Project. Mr. Huffman noted
9 Richmond's interest is in the generation of electricity instead of gas. The
10 Department of Energy would like to stay along the lines of more conventionally
11 developed equipment at this time. Leas had talked about a new hybrid type
12 of generation. Mr. Huffman noted any economics would have to be limited to
13 existing facilities. The Department of Energy has asked Mr. Leas to resubmit
14 his proposal to them. Mr. Huffman and Mr. Leas are to meet with the Indiana
15 Department of Energy to go over this same project. The Department of Energy
16 will send people to make tests on Mr. Leas' pilot plant.
17
There being no further business on motion duly made., seconded and passed, the
19 'mmeeeting;was adjourned.
20 .1111
Rick Ahaus
- w Chairman
- 24
25 ATTEST: JoEllen Trimble
26 City Clerk