HomeMy Public PortalAbout09-07-1976 PROCEEDINGS OF THE COMMON COUNCIL OF THE
CITY OF RICHMOND, INDIANA, SERVING AS
A COMMITTEE IN CHARGE OF THE OPERATION OF THE
RICHMOND POWER & LIGHT PLANT, SEPTEMBER 7, 1976
I The Common Council of the City of Richmond, Indiana, serving as a
2 committee in charge of the Richmond Power & Light Plant, met in regular
3 session September 7, 1976, at the hour of 7:00 P.M. in the Municipal
4 Building of said City. Mr. Ahaus presided with the following members
5 present: Messrs. Austerman, Carter, Cornett, Elstro, Merchanthouse,
6 Mills, Paust and Williams. Absent: None. The following business was
7 had, to-wit:
89 Mr. Williams moved to approve the minutes of the previous meeting, seconded
10 by Mr. Mills and on unanimous voice vote the motion was carried.
11
12 Mr. Merchanthouse moved approval of the following bills, seconded by
13 Mr. Mills and on unanimous voice vote the motion was carried:
14
15 APPROVE THE FOLLOWING:
16 Bills in the amount of $ 421,509.47
17 Interest Coupons 35,605.00
18 2 Payrolls $ 146,149.63
19
20 INVESTMENTS PURCHASED:
21 * :Depreciation Reserve Fund $1,337,500.00
22 ** " - " It 91,000.00
23 ** Utility Bond Reserve Fund 1,775.20
24 ** Utility Bond Fund 68,937.49
25 4e* Cash Reserve Fund 60,000.00
26 ***Cash Operating Fund 200,000.00
�7:-
28 * C.D. 's Maturing in 1 year, yielding 6 1/2%
29 ** C.D. 's " 12/30/76, " 5 1/2%
30 ***C.D. 's II 8/30/77, 6 1/2%
31
32 Mr. Ahaus announced that due to a conflict, the meeting originally
III33 scheduled for Monday at 7:00 p.m. will be at 8:00 p.m. instead. This is
34 a meeting with Ernst and Ernst and will be held in the Board of Works
35 Room instead of RP&L.
36
37 General Manager Irving Huffman reported that the Indiana Court of Appeals
38 threw out one of the rate. cases because of a technicality. RP&L had been
39 discussing with their attorney prior to this time whether or not to drop
40 the case since the case had become moot, as a new recommendation had been
41 issued by the Administrative Law Judge; however, the Judge made a legal
42 error and RP&L may file a brief.
43
44 The Federal Power Commission says that I&M is to show cause why our billing
45 demand is as it is. This is a very timely question as we are now in
46 negotiations with I&M. Mr. Huffman feels that the Federal Power Commission
47 has decided to go to work, which should be to the benefit of everybody
48 concerned.
49
50 In connection with the Indiana Public Service Commission Report, Mr. Huffman
51 stated that whenever any public utility wants to raise its wholesale rate,
52 the only thing necessary is to file the amount that it chooses to receive
53 from its wholesale customers with the Federal Power Commission. The Commission
54 can allow this to go into effect by doing nothing or it can suspend the
55 rate for any period of time between one (1) day and five (5) months. After
56 this time period has passed, the rate goes into effect. Hearings will be
li 57 held to determine the justness of the overcharges and refunds are to be
58 made with interest. In June I&M asked for a substantial increase of all
59 of its wholesale customers. An appeal was made to the Federal Power Commission
60 to extend to the maximum allowable time of five (5) months, rather than the
61 thirty (30) days that they had granted. A group of mayors and utility managers
62 went to Indianapolis and met with Governor Bowen on July 13 to discuss the
63 plight of many of the systems. The Governor asked the PSCI to work out a
64 system to help these companies. The Chairman of the PSCI wanted to study
RP&L MINUTES Cont'd
September 7, 1976
Page 2
1 the problem and hold hearings on power cost tracking issues and would
2 like those in charge of utilities to indicate if they want these hearings
3 and studies. If more than fifty percent (50%) desire this, it will be
4 set up. RP&L needs to advise before the last of September whether or
5 not we support this study. Mr. Huffman would like to submit a formula
6 which would reflect only the increase.
7
8 There being no further business on motion duly made, seconded and passed
9 the meeting was adjourned.
10
11 Rick Ahaus
12 Chairman
13
14 A'IThST: JoEllen Trimble
15 City Clerk