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HomeMy Public PortalAbout039-1982 - Reinstating Rates and Charges and a dismissal of a petition for rate increases for RP&LORDINANCE NO. 39-1982 AN ORDINANCE REPEALING ORDINANCE NO. 24-1982, REINSTATING RATES AND CHARGES IN EFFECT PRIOR THERETO, AND AUTHORIZING THE DISMISSAL OF A PETITION FOR INCREASE OF RATES AND CHARGES BY THE CITY OF RICHMOND D/B/A RICHMOND POWER & LIGHT AND MATTERS RELATED THERETO. WHEREAS, the City of Richmond is the owner of and operates a municipal electric utility system supplying said City and the inhabitants thereof with electricity for public, domestic and industrial uses under the style of Richmond Power & Light (RP&L) which municipal electric utility is subject to the control of the Common Council of the City of Richmond acting as the governing body thereof; and WHEREAS, the General Manager of RP&L had advised the Common Council of the City of Richmond that it is not in the public interest because of general economic conditions for RP&L to carry out the provisions of Ordinance No. 24-1982 heretofore adopted by this Council on July 6, 1982, wherein the rates and charges for electric service of RP&L are increased and provisions to carry out the terms of said ordinance including the filing of a petition with the Public Service Commission of Indiana were authorized; and WHEREAS, this Council now finds that it is not in the public interest to increase the rates and charges of RP&L at the present time and appropriate action by this Council should therefore be taken including repealing Ordinance No. 24-1982. NOW THEREFORE BE IT ORDAINED by the Common Council of the City of Richmond as follows: SECTION 1. That Ordianance No. 24-1982 heretofore enacted by this Council on July 6, 1982, is hereby repealed. The rates and charges that were in effect for electric service rendered by Richmond Power & Light prior to the adoption of Ordinance No. 24-1982 are hereby reinstated and made effective for the use for electric ser- vice rendered by Richmond Power & Light and said rates and charges shall continue in effect until further action by this Council. SECTION 2. That the General Manager of RP&L, its employees and agents, are hereby authorized to dismiss any petitions now pending before the Public Service Commission of Indiana pursuant to the provisions of Ordinance No. 24-1982 and to take such further action as may be required to carry out the provisions of this ordinance. SECTION 3. That all ordinances and parts of ordinances in conflict herewith are hereby repealed including Ordinance No. 24-1982 in its entirety. SECTION 4. 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 on the ` day of1982. Pret,ident of Common Council ATTEST: City'C1erk PRESENTED by me to the Mayor of the City of Richmond on the dayyl - of ��CF-ul-,�,�,% 1982 at the hour ofJl1_/s o'clock M. (EST). Cit Clerk APPROVED by me, Clifford J. Dickman, Mayor of the City of Richmond, Indiana, on the day of ��-,� . eti: 1982, at the hour of LL ,` .S' o'clock 4-.M. (EST) . AfT-ZST : Ck�vy'Clerk -2- ORDINANCE NO. -1982 AN ORDINANCE REPEALING ORDINANCE NO. 24-1982, REINSTATING RATES AND CHARGES IN EFFECT PRIOR THERETO, AND AUTHORIZING THE DISMISSAL OF A PETITION FOR INCREASE OF RATES AND CHARGES BY THE CITY OF RICHMOND D/B/A RICHMOND POWER & LIGHT AND MATTERS RELATED THERETO. WHEREAS, the City of Richmond is the owner of and operates a municipal electric utility system supplying said City and the inhabitants thereof with electricity for public, domestic and industrial uses under the style of Richmond Power & Light (RP&L) which municipal electric utility is subject to the control of the Common Council of the City of Richmond acting as the governing body thereof; and WHEREAS, the General Manager of RP&L had advised the Common Council of the City of Richmond that it is not in the public interest because of general economic conditions for RP&L to carry out the provisions of Ordinance No. 24-1982 heretofore adopted by this Council on July 6, 1982, wherein the rates and charges for electric service of RP&L are increased and provisions to carry out the terms of said ordinance including the filing of a petition with the Public Service Commission of Indiana were authorized; and WHEREAS, this Council now finds that it is not in the public interest to increase the rates and charges of RP&L at the present time and appropriate action by this Council should therefore be taken including repealing Ordinance No. 24-1982. NOW THEREFORE BE IT ORDAINED by the Common Council of the City of Richmond as follows: SECTION 1. That Ordianance No. 24-1982 heretofore enacted by this Council on July 6, 1982, is hereby repealed. The rates and charges that were in effect for electric service rendered by Richmond Power & Light prior to the adoption of Ordinance No. 24-1982 are hereby reinstated and made effective for the use for electric ser- vice rendered by Richmond Power & Light and said rates and charges shall continue in effect until further action by this Council. SECTION 2. That the General Manager of RP&L, its employees and agents, are hereby authorized to dismiss any petitions now pending before the Public Service Commission of Indiana pursuant to the provisions of Ordinance No. 24-1982 and to take such further action as may be required to carry out the provisions of this ordinance. SECTION 3. That all ordinances and parts of ordinances in conflict herewith are hereby repealed including ordinance No. 24-1982 in its entirety. SECTION 4. 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 on the day of f; l --` 1982. President of Common Council ATTEST: 4 City"Clerk PRESENTED by me to the Mayor of the City of Richmond on the day of 1982 at the hour of o'clock .M. (EST) . City Clerk APPROVED by me, Clifford J. Dickman, Mayor of the City of Richmond, Indiana, on the day of , 1982, at the hour of o'clock M. (EST). ATTEST: City Cler Mayor -2- NOTE: NOT TO BE RELEASED BEFORE 12:00 NOON FRIDAY, OCTOBER 29, 1982 NEWS RELEASE Issued by: Richmond Power and Light, Irving A. Huffman, General Manager Acting upon a management report, the Common Council serving as the Board of Directors for Richmond Power and Light are to vote on delaying the R.P.& L. rate increase request. In May rate consultants recommended R.P.& L. should petition the Public Service Commission for an increase. The consultants also recommended R.P.& L. perform a cost of service study and adjust rate schedules to comply with the Public Utilities Regulatory Policy Act of 1978. Following the consultants recommendations the Council authorized R.P.& L. to petition the P.S.C. for increases averaging 11.18%. The P.S.C. has set hearings to start November 3. An increase in rates will have a negative effect on Richmond industries and residential customers. The City of Richmond is faced with an 18% increase in street lighting costs. Schools and hospitals are faced with increased costs. Richmond Power and Light estimates that customers will also reduce usage when higher rates are approved. The Board of Directors and the employees of Richmond Power and Light feel now is the time to try and help our customers through these troubled economic times. It does mean going against the recommendation of our consultants. The proposed 1983 operating budget has been cut to a safe minimum and savings are expected from R.P.& L.'s involvement in the Indiana Municipal Power Agency. Employee suggestions of methods to increase efficiency and productivity are being received and implemented. A small profit is now being projected for 1983 rather than a $100,000 loss. Any losses in 1984 will be absorbed from R.P.& L. reserve funds. It should be noted any rate increase proposed in the future will probably have to be far greater than 11.18%. Our customers and the City both need our help now and hopefully the economy will be stronger down the road. Richmond Power and Light's last general rate increase was 1980.