HomeMy Public PortalAbout06-07-1976 PROCEEDINGS OF THE COMMON COUNCIL OF THE
CITY OF RICHMOND, INDI:ANA, SERVING AS
A COMMITTEE IN CHARGE OF THE OPERATION OF THE
RI:CHMOND POWER & LIGHT, JUNE 7, 1976
1 The. Common Council of the City of Richmond, Indiana, serving as a
2 committee in charge of the Richmond Power & Light Plant, met in
3 regular session June 7, 1976, at the hour of 7:00 P.M. in the Municipal
4 Building of said City-. Mr. Mills presided with the following members
5 present: Messrs. Austerman , Carter, ElstrOI ,PaustrandPWi_lliama: Absent:
6 -CQrnett_,AhEUs,fMerohanthbuse)aesTheafoEl,d.odiag-bttiness was had, to-wit:
7
8 Mr. Williams moved to approve the minutes of the previous meeting,
9 seconded by Mr. Carter and on unanimous voice vote the motion was carried.
10
11 Mr. Austerman moved approval of the following bills and investments
12 purchased, seconded by Councilman Elstro and on unanimous voice vote the
13 motion was carried.
14
15 APPROVE THE. FOLLOWING
16 Bills in the amount of $236,701 .16
17 Interest Coupons 377.50
18 1 Payroll 71 ,283.21
19
2Q I:NVE.STMENTS PURCHASED:+
21 *Depreciation Reserve Fund $1 ,901 ,000.00
22 **Cash Reserve Fund _ 60,000.00
23 ***CcakiOperating Fund 300,000.00
24 ****Utility Bond Fund 341 ,708. 36
25 *****Utility Bond Reserve Fund 162,100.74
26
27 *C. D. 's Maturing 1 year, yielding 6. 1/2%
28 **C. D. 's 5/20/77, 6%
29 ***C.D. 's 7/23/76 , 5 '1/4%
III30 ****C.D. 's ": 6/30/76, 5 1/8%
31 *****C.D. 's 5/27/77, 6 5/8%
32
33 General Manager, Irving Huffman, reported that RP&L has been asked for
34 a new rate increase from I & M. It is necessary for. RP&L to intervene
35. in this case before June 17th; therefore, Mr. Huffman is requesting
36 authorization to hire services of an attorney, consulting engineer and
37 a rate of return witness. Mr. Huffman would like to have George Spiegel
38 as an attorney, R.W. Beck as ' consulting engineering firm and John W.
39 Nilson & Associates. He announced that a deal had been worked out with
4Q Anderson, Indiana and may expand to other munici:pals ,`.torsplit the
41 services of Wilson and Beck on a 50-50 basis , except for any services
42 that would benefit only one or the other. Anderson is going back into
43 generating services.
44
45 Mr. Elstro mave.U,Mr. Huffman have the authority to engage these firms ,
46 seconded by Mr. Paust and on unanimous voice vote the motion was carried.
47
48 Mr. Huffman announced that boiler insurance is hard to obtain as the
49 recent history of large boiler companies has been disastrous. RP&L has
- 50 had a tremendous record. Our insurance firm now is asking to have a
51 150% increase. We have been paying $50 ,000.00 for a three (3) year
52 period and are now faced with paying $50,000.00 per year.
53
III54 A nottfcation was issued today concerning the interest rate for cus-
55 toners on file with the Federal Power Commission. They collect money
56 under bond and any over-charges must be returned to whoever is being
57 charged plus seven (7) percent interest. RP&L joined as part of Indiana
58 Electric Association and presented that the rate was too low. It 'should
59 be more in line with interest rates of nine (9) percent. Any filed before
60 October 10, 1974 would not get rate increase. This was appealed to .
61 Federal Power r Commission and they turned it down. The U.S . Court of
62 Appeals ruled in our favor for those cases on file before October 10, 1974.
RP&L Minutes Cont'd
June 7, 1975
Paget •
1 Any rate overcharges by American Electric Power will now get nine (9)
2 percent instead of seven (7) percent.
3
4 It was the decision of attorneys in Washington to try the'`case of
5 price squeeze. .I:f a company files for a rate increase asking for
6 higher rate than industrial customers, this would- be anti-competitive.
7 They took the Conway, Arkansas case and made it a tes-t case. The
8 Court of Appeals ruled that the Federal Power Commission must review
9 all rates charged by a particular company even though they may be
10. under the. Court's jurisdiction. The Federal Power Commission appealed
11 this decision and it went to the Supreme Court and they ruled nine
12 (9) to zero (0) in our :favor" that-the =Federal Power- Commission.must-
13 address: tself" to the ..rate'tgeeze. A power company cannot charge a
14 rate more than industrial customers. We have been on -an industrial
15 rate for some time. As our contract runs: out, we would not be on an
16 industrial rate but it would have to be reviewed when our contract
17 runs out; however, they will have to show cause to increase. rate.
18
19 Electric Week of June 7, 1976, pointed out Senate Bill .3311 before
2Q Senate Commerce Committee. Th.e lobbyists felt they had put the
21 original bill (3310) away and 3311 would not be coming before them.
22 This bill would bring about reform to the Federal Power. Commission
23 addressing itself to any arrangements that would be beneficial to
24 RP&L. RP&L is interested in seeing this bill go through.
25 .
26 Mr. Williams requested Mr. Fluffman take a look at wires .in limbs at
27 220.North. 9th'.
28 -
29 There being no further business:, on motion duly made, seconded and
30 passed, the meeting was adjourned.
31 .
32 Kenneth Mills
33 Acting Chairman
34
35 ATTEST: JoEllen Trimble
36 City Clerfk. .