HomeMy Public PortalAbout08-21-1972 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, AUGUST 21 , 1972
The Common Council of the City of Richmond, Indiana, serving as a committee in charge
of the operation of the Richmond Power & Light Plant, met in regular session August 21 ,
1972, at the hour of 7:00 p.m. in the Council Chambers of the Municipal Building of
said City. Mr. Elstro presided with the following members present: Messrs. Brown,
Cornett, Elstro, Marino, Merchanthouse, Mills, Shields, Stigleman and Williams. Absent:
III None. The following business was had to-wit:
Mr. Brown moved the minutes of the previous meeting be amended to correct the voting
record on the wate increase to read 6-3 in favor, seconded by Mr. Marino, and on unani-
mous voice vote the motion was carried. Mr. Merchanthouse moved to approve the minutes
as amended, seconded by Mr. Mills and on unanimous voice vote the motion was carried.
Mr. Marino moved to pay bills and make progressive payments and transfer, seconded by
Mr. Mills, and on unanimous voice vote the motion was carried.
APPROVE THE FOLLOWING:
Bills-amount of $344,000.69
Interest Coupons 780.00
1 Payroll 59,592.34
PROGRESSIVE PAYMENTS ON:
Steam Generator $ 47,231 .10
Electrostatic Precipitators 54,736.40
Control & Instrumentation Equip. 13,725.68
Generator Transformer 720.00
Electrical Construction 37,980.00
Mechanical Construction 91 ,224.00
TRANSFERS FROM CASH OPERATING FUND TO:
Utility Bond Fund $ 61 ,957.43
Utility Bond Reserve Fund 40,000.00
Depreciation Reserve Fund 57,000.00
Mr. Maino asked that the Board be given a progress report on the street lighting pro-
gram at the next meeting.
Mr. Huffman read the following letter:
Richmond Power & Light
August 17, 1972
TO: I. A. HUFFMAN, GENERAL MANAGER
FROM: DELMER COX, GENERAL OFFICE MANAGER
Mr. Huffman:
We have $1 ,500,000.00 in the Depreciation Reserve Fund which is available
for investment.
I recommend we purchase $1 ,500,000.00 U.S. Treasury Bills maturing July 31 ,
1973 and selling at an interest rate of 4.63%.
Upon Council 's approval , I will instruct the County Treasurer to purchase
III as many securities as the above fund will purchase.
Mr. Williams moved the Board approve the investments, seconded by Mr. Brown, and on
unanimous voice vote the motion was carried.
Mr. Huffman asked the Board approve $781 .00 for the employees ' recreation program, from
September 1 , 1972 to August 31 , 1973, to be used for basketball , bowling, horseshoes,
and softball . Mr. Stigleman moved the Board approve the program as recommended, seconded
by Mr. Cornett, and on unanimous voice vote the motion was carried.
Mr. Huffman reported that the Federal Power Commission issued an order suspending the
I. & M. rate increase on August 11 , 1972, for the maximum allowable time, which is
five months.
Light Plant Minutes
August 21 , 1972
Page 2
The F.P.C. also denied a request of I . & M. to have the F. P. C. waive the 60 day
requirement for the advance filing of supporting data before any rate increase to
become effective.
I. & M. requested the effective data for the rate increase to be July 14, 1972. In
effect the earliest a rate increase can be invoked will be January 13, 1973. After
that time I. & M. can charge the new requested rate of 47% increase. However, any
overcharge will be refunded.
A prehearing for the rate case has been ordered by the F. P. C. for November 28,
1972. Our attorneys George Spiegel and Associates and Anderson's attorneys are
appealing the ruling made by the F. P. C. in that I . & M. can require Richmond and
Anderson to be taken off our present I .P. contract and be served by a completely
new contract. We contend we signed a contract with I . & M. in good faith. We were
told in 1970 by I . & M. we had to honor their I .P. contract because both parties had
signed it in good faith. Now we find a different story.
If our appeal is denied then we will file in the U. S. Court of Appeals, Washington,
D.C. for a hearing and a decision.
Next month there is a meeting in Washington, D.C. for all the opponents of the I . &
M. rate case and their attorneys in order to check signals and discuss the case in
order to eliminate any duplication of expenses.
Mr. Huffman reported that parts of the turban generator of the Whitewater Valley Sta-
tion are being tested and the precipitators are going up.
There being no further business on motion duly made, seconded and passed,—the meeting
was adjourned.
H. J. Elstro, Jr.
Chairman
ATTEST: Lotte Hoskins, City Clerk