HomeMy Public PortalAbout003-1985- AUTHORIZING THE EXECUTION AND DELIVERY OF THE FIRST AND SECOND AMENDMENTS OF THE CAPACITY PURCHASE AGREEMENTORDINANCE NO. 3-1985
AN ORDINANCE OF THE CITY OF RICHMOND, AUTHORIZING THE EXECUTION
AND DELIVERY OF THE FIRST AND SECOND AMENDMENTS TO THE CAPACITY
PURCHASE AGREEMENT BY AND BETWEEN THE CITY OF RICHMOND AND THE
INDIANA MUNICIPAL POWER AGENCY.
WHEREAS, the City of Richmond (the "Member") is a municipal corporation
created and existing under the laws of the State of Indiana and is a member in
good standing of the Indiana Municipal Power Agency ("Agency"), a body corporate
and politic and political subdivision of the State of Indiana, created pursuant to LC.
8 - 1- 2.2 (the "Act"); and
WHEREAS, the Agency and the Member entered into a Capacity Purchase
Agreement (Agreement) on April 1, 1982, pursuant to the authority of the Com mon
Council of the City of Richmond, Indiana, given by Ordinance No. 12- 1982 and
adopted March 15, 1982; and
WHEREAS, the Member seeks certain amendments to the Agreement and the
Agency has agreed to such amend m ents as approved by the Agency in its Resolutions
84 - 2 1 and 84 - 22 adopted December 20, 1984; and
WHEREAS, the First and Second Amendments to the Agreement are marked as
Exhibits A and B and are attached hereto, and incorporated herein by reference, and
two (2) copies of each are on file in the office of the City Clerk for public
inspection pursuant to L C. 36 - 1- 5 - 4; and
WHEREAS, based upon the foregoing, the Member by this Ordinance hereby finds
and determines to approve the First and Second Amendments to the Agreement;
NOW THEREFORE BE IT ORDAINED BY THE COMMON COUNCIL OF THE
CITY OF RICHMOND, INDIANA THAT:
SECTION 1. The Member is authorized pursuant to this Ordinance to enter into
the First and Second A m end m ents to the Agreement in the forms attached hereto
as Exhibits A and B.
SECTION 2. The findings and determinations set forth in the preambles to this
Ordinance are hereby made findings and determinations of the City of Richmond.
SECTION 3. By this Ordinance, the Mayor is hereby authorized and directed to
execute and deliver, and the City Clerk is hereby authorized to attest and seal, the
First and Second Amendments to the Agreement.
SECTION 4. All ordinances and parts of ordinances in conflict herewith are
hereby repealed.
SECTION 5. This Ordinance shall be in full force and effect from and after its
passage.
PASSED AND ADOPTED by the Common Council of the City of Richmond,
Indiana this64day off 1985.
reP s!Aen of Com mon Council
ATTEST:
City Cle
PRESENTED by me to the Mayor of the City of Richmond, Indiana this 4-e day
of , 1985.
City Cle k
APPROVED by me, Frank H. W alter m ann, Mayor of the City of Richmond, Indiana
this ?4�4 day of 1985.
Mayor
ATTEST:
City Clerk
RICHMOND POWER & LIGHT
January 2, 1985
TO ALL COUNCIL PERSONS:
Area Code 317
Telephone 935-3131
2000 U. S. 27 South
Mailing Address: P. 0. Box 908
RICHMOND, INDIANA — 47375
SUBJECT: First and Second Amendments to Capacity Purchase
Agreement.
Enclosed are two amendments to the Capacity Purchase Agreement
between Indiana Municipal Power Agency (IMPA) and City of Richmond
(RP&L).
The First Amendment involves the loss of interest money RP&L
could receive if IMPA owned the coal storage pile. I asked that IMPA
compensate us for the loss of potential interest money and was able
to get IMPA to agree to a 70 day coal storage supply amount.
RP&L, upon passage of this amendment, would receive in reduced
billings, compensation in excess of $100,000 per year. I recommend
passage of this ordinance in one meeting, inorder to start receiving
compensation at the earliest possible time.
The Second Amendment involves setting a minimum compensation
for RP&L capacity payment. Our monthly payment is calculated by a
rather lengthly formula. The I&M increase revealed an under compensation
to RP&L and all other generating utilities with each increase from
our wholesale suppliers. The compensation formula will be changed
upon passage of the Second Amendment and will increase our capacity
payment approximately $5,000,000 per year. This inturn will reduce
the increase from IMPA, due to the I&M increase, giving us a resultant
increase of less than $1,000,000 per year.
The overall increase will be approximately 40% of the original
increase. The original increase was approximately 16% over the average
annual amount charged our customers prior to November 1984.
I also recommend passage of this ordinance in one meeting inorder
that our customers can enjoy the reduced costs. Any overcharges made
in the past will be returned to the customer through reduced charges
on future bills.
I certainly hope the above is understandable and if you have
any questions, please advise.
Page 2
Via carbon copy of this letter, I am asking the City Attorney
to put these two amendments on the Council agenda for January 7, 1985
meeting. Adequate additional copies of the ordinance and the amendments
should also be provided to all involved parties.
Very truly yours,
RICHMOND POWER AND LIGHT
Irvi a A. Huff
General Manager
IAH/bw
Encl.
cc: Mr. Ken Barden, City Attorney
Ms. Mary Merchanthouse, City Clerk
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