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HomeMy Public PortalAbout10-06-1975 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 , OCTOBER 6 , 1975 1 The Common Council of the City of Richmond, Indiana, met in regular 2 session October 6, 1975 at the hour of 7:00 p.m. in the Council 3 Chambers in the Municipal Building in said City serving as a committee 4 in charge of the operation of the Richmond Power & Light Plant. Mr. 5 Brown presided with the following members present: Messrs. Cornett, 6 Elstro, Geier, Hilton, Marino, Merchanthouse, Mills and Williams. 7 Absent: None. The following business was had to-wit: 8 9 Mr. Williams moved to approve the minutes of the previous meeting, 10 seconded by Mr. Mills and on unanimous voice vote the motion was carried. 11 12 Mr. Hilton moved to approve the following bills, seconded by Mr. Elstro 13 and on unanimous voice vote the motion was carried. 14 15 APPROVE THE FOLLOWING: 16 Bills in the amount of $ 261 ,205.64 17 Interest Coupons 387.50 18 2 Payrolls 131 ,454.45 19 20 INVESTMENTS PURCHASED 21 *Depreciation Reserve Fund $ 300,000.00 22 **Cash Reserve Fund 180,000.00 23 24 *C.D. 's Maturing 9/26/76, yielding 8% 25 **C.D. 's Maturing 12/30/75, yielding .6 5/8% interest 26 27 Mr. Brown, Chairman of the Board of Directors of the Richmond Power 28 and Light stated, "At our last meeting Mr. Sumner, Business Manager 29 of the IBEW read a statement to this body and at that time we agreed 30 to take our answer under advisement. 31 32 Mr. John Brown, Chairman of the Board of Directors of the Richmond 33 Power and Light Plant read the following letter: 34 35 Gentlemen: 36 37 We thank you for your letter of September 15, 1975, and the 38 following is a reply to the questions raised. 39 40 The Councilmen assigned to the Employees Relations Committee 41 have studied the events of each meeting held to date and have 42 advised the Board of Directors that negotiations have been 43 taking place in good faith and progress has been made. 44 45 Richmond Power and Light has engaged the services of Mr. Reed 46 Scism as their Labor Relations Consultant and he is acting in the 47 , capacity similar to you and Mr. E.J. Bailey. You three men are 48 acting as chairmen and consultants to your committees. Upon 49 an agreement between the two negotiating committees, both 50 the employees of Richmond Power and Light and the Board of Directors 51 for R.P.&L will vote upon the acceptance of the proposed contract 52 and labor agreement. 53 54 Contract language is very important to the employees of R.P.&L. 55 as well as the management. It is necessary that the two negotiating 56 committees meet in order to work out any differences. Therefore, 57 it is our request that your committee meet with the R.P.&L. manage- 58 ment committee and both negotiating groups resume bargaining. 59 60 R.P.& L. Minutes October 6, 1975 Page 2 1 Mr. Cornett moved to have a rate comparison for the month of August 2 and September to be issued at the next meeting, seconded by Mr. Mills 3 and on a call of the roll the following was recorded: Ayes; Cornett 4 and Mills. Noes; Elstro, Geier, Hilton, Marino, Merchanthouse, 5 Williams and Brown, The vote being two (2) to seven (7) in favor 6 of rejection of the motion. 7 8 Mr. Irving Huffman, General Manager, presented the following statement: 9 10 Mr. Chairman, tomorrow I have a meeting in Ft. Wayne with 11 Mr. Raymond Cristell of the City of Cleveland and Mr. Robert 12 Hart, Assistant Law Director of the City of Cleveland.. The 13 City of Cleveland is interested in purchasing our excess 14 power. 15 16 Several companies in the past have shown an interest to pur- 17 chase our excess power; however, it seems we always run into 18 a block from I&M. I&M never replies adequately to any of our requests 19 to transmit the power, or advise the rate for transmission. 20 21 The City of Cleveland is making a personal visit to I&M tomorrow 22 with a request to purchase our excess power. R.P.&L. does 23 not want to sell power to other utility companies. In order 24 to minimize our losses we are forced to seek to sell our excesses. 25 26 Mr. Chairman, the antics of I&M have been most gotesque. I&M 27 has set up every roadblock possible to keep Richmond and other 28 municipals from doing their thing, and that is generating, trans- 29 mitting, and selling power to each other for the benefit of 30 our customers. These customers are our owners. 31 32 The newest antic of I&M comes in the form of recent testimony 33 of Mr. Robert M. Kopper, Executive Vice President and chief 34 operating officer for I&M, and also a Board-of-Director member 35 for American Electric Power, the parent company of I&M. Mr. 36 Kopper testified before the Federal Power Commission in Docket 37 No. E-9329, which is a limited issue with the City of Anderson, 38 that I&M does not have the capability to serve the increased 39 power needs of Anderson. 40 41 I&M has been very busy these past few weeks. They have sent 4Z cancellation notices to all their wholesale customers. 3 44 In the past, I&M spent considerable effort to advise the 45 citizens of Richmond why we should not install a new generator 46 here in Richmond. To us, and to other customer owned systems, 47 I&M has advised that they have spent considerable money to look 48 after wholesale customers, and there was no need for municipals 49 to install generation. Now, all of a sudden, they are advising 50 municipally-owned and cooperatively-owned systems we don 't have 51 enough capacity and we don't want you. 52 53 I do sympathize with I&M, because I&M is short of investment 54 money. But I do not sympathize with I&M whey they no longer 55 want to live up to their responsibilities to serve all their 56 customers regardless of the class of customer. 57 58 Anderson was encouraged not to install .generation. What are 59 the citizens of Anderson faced with now? I quote from 60 Anderson's Sunday Herald, "Candlelight suppers will become 61 nightly occurrences in Anderson by 1978 if the city does not 62 find a new electric power source". I&M is now encouraging 63 them to install their own generation or go elsewhere to purchase 64 power, and I&M will transmit it over I&M lines. The citizens 65 of Richmond, ineffect, had been told by way of the demand 66 requirements, "You must purchase or pay for more power than 67 you need at rates higher than charged to other customers." 68 R.P.&L Minutes October 6, 1975 Page 3 1 General Manager Irving Huffman's statement cont. 2 3 And now apparently we are being told, "You purchase from 4 us or pay for more power than you need as long as we 5 want you, after which we don't want you. " 6 7 Mr. Chairman, depending upon when business starts back up, 8 this country is going to be faced with a very severe 9 power shortage by the late'70's. There is a very definite 10 need for all power companies to build for the future now. 11 This includes R.P.&L. 12 13 However, Mr. Chairman, here we sit. I&M doesn't answer 14 our letters adequately----won't reply to our request 15 submitted in 1972 for a contract along the lines they 16 are now proposing for Anderson. What gives? In effect 17 they are telling municipal and co-op electric systems, 18 "If you don't have generation, put some in and we will 19 help you", which naturally includes a complete interchange 20 contract. However, what has R.P.&L. had to date? If 21 you have generation you are not going to get an interchange 22 contract. 23 24 Mr. Chairman, the citizens of Richmond need to be most 25 concerned with these antics. We need to plan for our 26 future needs, not those of I&M. Our attorneys have been 27 made aware of I&M's latest antics. 28 29 30 Mr. Geier moved to authorize Mr. Huffman to receive bids to 31 replace a wrecked car, seconded by Mr. Hilton and on unanimous 32 voice vote the motion was carried. 33 34 There being no further business on motion duly made, seconded and 35 passed, the meeting was adjourned. 36 37 38 John Brown 39 Chairman 40 41 42 ATTEST: Margaret Mellen 43 City Clerk 44 45