HomeMy Public PortalAbout013-1978 - Approving rules and regulations for the curtailment of elcetrical service rendered by RP&LORDINANCE NO. 13-1978
AN ORDINANCE APPROVING RULES AND REGULATIONS FOR THE CURTAILMENT OF ELECTRIC
SERVICE RENDERED BY THE MUNICIPAL UTILITY OF THE CITY OF RICHh10ND, INDIANA,
RICHMOND POWER AND LIGHT, TO ITS VARIOUS USERS OF ELECTRIC POWER.
WHEREAS, an emergency situation exists now with respect to the availability of
the electric power for sale by the municipal electric utility of the City of
Richmond, Indiana, Richmond Power and Light, and said emergency may exist in
the future for reasons which cannot now be determined; and
WHEREAS, it would be in the best interest of the municipal electric utility
of the City of Richmond, Indiana, Richmond Power and Light, and its customers
to adopt emergency rules for the curtailment of electric service in the event
that an emergency does occur; and
WHEREAS, the Public Service Commission of Indiana, the Indiana Municipal Elec-
tric Association and various other utilities in the State of Indiana have under-
taken studies as to the most feasible method to implement emergency curtailment
rules, and reasonable and proper curtailment rules have been determined, which
rules are attached hereto, made a part hereof as Appendix A to this ordinance;
and
WHEREAS, this Common Council of the City of Richmond, Indiana, hereby determines
that it would be in the best interest of the municipal electric utility of the
City of Richmond, Indiana, Richmond Power and Light, to approve said curtailment
rules at this regular meeting at which two-thirds of the members of the Common
Council of the City of Richmond, Indiana, are in attendance for the considera-
tion and adoption of this ordinance and are in unanimous agreement with all
matters herein set out; and
NOW THEREFORE, be it ordained by the Common Council of the City of Richmond,
Wayne County, State of Indiana, as follows:
SECTION 1. That the electric curtailment rules for the municipal electric
utility of the City of Richmond, Indiana, Richmond Power and Light, as set
forth in Appendix A, attached hereto and made a part hereof, is hereby adopted
and approved.
SECTION 2. That the said electric curtailment rules herein adopted and approved
are hereby authorized to be filed with the Public Service Commission of Indiana
for information purposes only and so identified.
PASSED AND ADOPTED by the Common Council of the City of Richmond, Wayne County,
Indiana, this-,- "" day of `1 < t 1978.
�re"'icient o t e Common Council
ATTEST:
Cit Clem
PRESENTED by me, the City Clerk, to the Honorable Mayor of the City of Richmond,
Indiana, this � day of ! , 1978.
City Clerk
APPROVED by me, this `'day of ! 1978.
Mayor
ATTEST:
City Clerk-
RICHMOND POWER AND LIGHT OF THE CITY OF RICEMOND, INDIANA
EMERGENCY ENERGY CURTAILMENT PROGRAM
Attached hereto as Appendix A is the "Emergency Curtailment and Load Reduction
Plan for Indiana Electric Utilities of the partial supplier of electrical energy
to the municipal electrical utility of the City of Richmond, Indiana, Richmond
Power and Light. The Indiana municipal systems must coordinate their energy
usage with their supplier. The program consists of four steps which provide for
the curtailment of electrical usage per Public Service Commission of Indiana,
Interim Order No. 2, Cause No. 35264, approved February 13, 1978, attached here-
to as part of Appendix A. Upon notification to Richmond Power and Light that
said supplier is implementing each of said steps 1 through 4, Richmond Power and
Light will immediately thereafter also implement said steps.
APPENDIX A
APPENDIX A
EMERGENCY
CURTAIII ENT AND LOAD REDUCTION PLAN
FOR INDIANA ELECTRIC UTILITIES
February 11, LOT �
S
1. Company Load Reduction During Fuel Shortages.
This step will be taken by the Utility when its fuel supplies
are decreasing and the remaining fuel supplies are sufficient
in its opinion for nct more than approximately 50 days` oper-
ation of its generation facilities.
A. Utility use of electric energy will be reduced in any
way that will not jeopardize essential operations.
B. Fuel supply levels at the Utility's generating stations
will become a determinant in economic dispatch decisions
in the effort to maintain a reasonable supply of fuel at
all generating stations.
C. The Utility will partially or fully terminate the avail-
ability of electric energy under the surplus capacity
provisions of rates for industrial and commercial power
service. This shall not apply to cooperative or
municipal utilities with generation.
Customer Voluntary Load Reduction During Fuel ShcrtacEec_
2.
If fuel supplies continue to decrease and the Utility's ra-
maining fuel supply is sufficient in its opinion for not more
than 50 days' operation of its generating facilities appeals
to users will be made for the voluntary curtailment of loacd.
Efforts should be made to obtain a decrease in usage of ap-
proximately 25% except that a lessor amount would be the c-Oa7
-2-
for specific customers if the 25% reduction would result in
situations where health and safety is not adecuately pro-
tected.
A. Public appeals will be made by the Utility through ap-
propriate news media asking customers to reduce their
use of electric energy by approximately 25% because of
the impending fuel shortage.
B. Direct appeals will be made by the Utility to major in-
dustrial and commercial customers and to wholesale cus-
tomers requesting them to shut off nonessential 1.0aas,
and curtail usage in an effort to obtain a 25%
reduction.
3. Mandatory Load Reduction During Fuel Shortaces.
If fuel supplies continue to decrease and the Utility's
remaining fuel supply is sufficient in its opinion for not
more than 40 days' operation of its generating facilities,
mandatory curtailment will commence pursuant to sections
through 12. hereof.
4.
Mandatory Curtailment, Limitation and Priorities ow 1`1�7ic2•
When fuel supplies are sufficient for not 71c t: a. �sG' ca,,
operation of the Utility's generating facilities or wl:$�':> ��-
any reason sufficient amounts of electric power., in zhe
-3-
judgment of the Utility, are not available to the Company to
meet all existing and reasonably anticipated demands for ser-
vice or to protect the integrity and stab-ility cf the system,
the Utility shall have the right to restrict, limit or cur-
tail electric service within any of its systems so aected
in accordance with any of the provisions of this Rule.
5. Definitions.
For the purpose of this Rule, the following terms shall have
the following meanings:
A. Human Needs Customers
Human needs customers shall include hospitals, medical
centers, nursing homes, and customers where curtailment
would adversely affect public health and safety such as
municipal fire departments, police departments, civil
defense, and emergency Red Cross services, and any ct:r
facility whose use of electric energy i� viz_
health and safety as determined by the Utility.
B. Residential Customers.
Residential customers shall mean customers living is
residential dwellings, mobile homes, ap artraer_ts, or
condominiums.
C. Commercial. Customers
Commercial customers shall mean custo;zers e gage: i-
warily in wholesale or retail trade and servict,L Inc `-
ing clubs, institutions, and local, state and feczr�i
governmental agencies, except educational insitutic�s.
-4-
D. Industrial Customers
Industrial customers shall be customers who are engaged
primarily in a process that creates or changes raw or
unfinished materials into another form or product.
E. Service Obligation
Service obligation shall be the largest metered demand
(peak demand for customers served on industrial and
commercial rates) in the previous twelve months.
If no such demand information is available, an estimate
will be used determined by dividing the KWH in the maximum.
usage month in such previous twelve months by 200 hours.
F. Living Quarters
Living quarters as used in Service Priority Class II
shall mean hotels, motels, dormitories and similar dwel-
ling places.
G. Base Monthly Consumption
Base monthly consumption will be the custo„erts average
billing month usage based upon the three mont'n period
the prior twelve months which corresponds to tr: villa,
month being curtailed and the im�neciiateir roc �;n
succeeding months. Adjustments may be mL�uia
with changed circumstances that have caused the prior
year's usage during the period to be nonrepresentativz
of current usage during the period.
A. Dispensable Uses
The following and similar types of uses of electric
energy shall be considered dispensable uses:
1. Outdoor flood and advertising lighting except
for the minimum level necessary to protect
life and property and a single illuminated
sign identifying commercial facilities that
are oven after dark.
2. General lighting levels in stores and offices
greater than minimum functional levels.
3. Show window and display lighting.
4. Greater number of elevators operating in
office buildings during nonpeak hours than is
necessary.
5. Parking lot lighting above minimum functional
levels.
6. Energy use greater than that necessary to
maintain a temperature of no less than 78
degrees during operation of cooling equipment
and no more than 65 degrees during operation
of heating equipment.
7. Greater than minimum work schedules; as pow
building cleaning and maintenance, restock;:.;,
etc., which would require office or indust�rial
facilities to be illuminated, cooled, or
heated beyond normal working hours.
8. Nighttime sports and recreational activiLzie.s.
9. Public museums, art galleries, and historic
buildings requiring illumination, cooling or
heating.
Any dispensable use shall be provided the minimum
amount of electricity to protect and maintain the
dispensable use facilities.
6, Emergency Curtailment Without Regard to Priority.
The Utility reserves the right to order electric serv-
ice curtailment without regard to the priority of service
when in its judgment such curtailment is required to
forestall imminent and irreparable injury to lire, prop-
erty or the electric system. Curtailment may include
interruption of selected circuits. A curtailment
pursuant to this Rule shall not exceed 721 consecu�ive
hours without approval of the Public Srrvic.c
Commission of Indiana.
7. Priority of Service.
Priority of Service, in the event of mandatory curtaii-
ment, shall be as set forth below. The highest priority
is Service Priority Class I and the lowest priority
of service is Service Friority Class V.
Service Priority
Class
I, Human Needs
II. Residential and living quarters
III, Commercial and industrial customers
IV. Schools, colleges, universities, and
other educational institutions.
V. Dispensable Uses and Surplus Capacity
Power.
3. Mandatory Curtailment Procedure
Curtailment, unless pursuant to 6., shall begin with
Service Priority Class V and continue as necessary
through'Service Priority Classes IV, III, II and 1 as
follows:
1, When the Utility's fuel supply reaches 40 days,
public notice, by press release, shall be given
to Service Priority Class V customers to fully
(100%) curtail such service.
2. When the Utility's fuel supply reaches 40 oays,
public notice shall be given to (a) Service rLority
Class IV to curtail service to a service level oL
not more that. 50% of service obligation, or base
monthly consumption, whichever is applicable as
determined by the Utility, (b) Service Priority Class
III to curtail service to a service level off not
more than 75% of service obligation or base monthll.y
consumption, whichever is applicable as determined
-E.-
by the Utility, and k'c) Service Priority Class II
to curtail service to a service level of .not more
than 85% of service obligation cr base month__
consur:,ption, whichever is applicable as determined
by the Utility.
3. When the Uti-lity` s fuel supply reaches 30 days,
public notice shall be given to (a) Service Priority
Class iV to curtail service fully to a service :level
that is necessary to protect and maintain Service
Priority Class IV facilities, (b) Service Prior-
ity Class III to curtail service to a service
level of not more than 50% of service obligation
or base monthly consumption, whichever is appli-
cable as determined by the Utility, and (c) Service
Priority Class II to curtail service to a service
level of nog mcre than 75% of service obligation:
or base montniv. consumption, whicillever is
cable as ueterain ed by the Utility.
4. After Service rriori�,:y Classes IV, Iy_ a.a I_ a_e
curtailed to a level of no- more than indicates: ..
subdivision 3 above of service obligation or Boas`
monthly consummption, Service Priority -1
through II, both inclusive, will be further curtaile(i
by equal percentages until full (100%) curtailment"
occurs.
5, After Service Priority Classes IV, III and II are
in full (100%) curtailment, curtailment shall
commence in service Priority Class I as necessary.
Except as provided in Section 8.1, the Utility
.will give notice of curtailment in the most effective
manner possible and as ;much in advance as possible
with regard to the exigencies and the number of cus-
tomers to be notified. The curtailment shall be
effective as of the time and date specified in the
notice.
9. Curtailment by Short Term Service Interruption
In the event mandatory curtailment is imposed, as above
provided, the Utility in addition may employ, for not
more than two hours' duration at any one time, selec-
tive short term service interruptions by operation on
a rotational basis of distribution switching equipment
to effect the necessary curtailment in one cc more
Service Priority Clas:les.-
10. Restoration of Service
Service shall be restored in the reverse orcer of tzhe
original curtailment.
11. Penalty for Noncompliance
Customers failing to comply with the specified
curtailment for more than. 7 days will be subject
to disconnection for the duration of the emergency.
-lo-
Energy use by industrial an-,-' urge Commercial customers
in excess of that permitted under curtailment shall be
subject to a 10 cent per KWF penalty, in addition to
normal billing charges, for all electric energy taken
in excess of mandatory curtailment limitations. Penalty
charges collected hereunder shall be segregated in a
separate account, and shall be applied to reduce the
fuel cost adjustment charges of industrial and Large
Commercial customers who, during the existence of a
fuel emergency, have not used electric energy in excess
of mandatory curtailment limitations.
12. Applicability
The terms and provisions of this Rule shall control
notwithstanding any terms and provisions of rate
schedules, General R-�iles and Regulations of Lhe Utility
or any contract or agr eu:ent between the Utility and
any Customer to n.e contrary.
APB
7. t�iority o` Service.
Priority of Service, in the ev•:nt of mandatory curtailment,
shall be as set forth below. The highest priority is Service
Priority Class I and the lowest priority of service is Service
Priority Class VIII.
Service Priority
Class
x
Human Needs
Residential, living quarters, co;m-
mercial and industrial customers
with a service obligation of 50 KEN or
Corm-nercial and industrial customers
with a service obligation of more
than 50 KW but less than 500 KW and
schools
Commercial and industrial customers
with a service obligation of 500 ry
but less than 1000 KW
Commercial and industrial c'. sto efs
with a service obiigatiori of y 0
but less thlan 3000 RW
Cor•.Lmercial and induu3Lrial castor,:e
with a service obligation or 500D0
but. less Shan 10,000 K ,
Ger:erzl service customers with se_ -
vice obli gat.ien of 10,000 K`, or more
and =11 custommers served or.
"Industrial Power Service" rutcs
"Dispensable Uses" and "Surplus Ca-
�. r.ancc3tary :'i:_'L�'11mi_�nt. ProcouJure
Curtailment, unless pursuant to 6. shall bf:gin with
vice priority Class VIII and continue as necessary through
Service Priority Classes VII, VI, V, IV, III, II and I as
follows:
1. Public notice, by press release, shall be giver. to Ser-
vice Priority Class VIII customers to fully (i.00%) cur-
tail such service.
2. After -aid public notice is given to Service Priority
Class VIII, curtailment will commence in Service Prior-
ity Class VII and continue until a service level is
reached of not more than 30% but not iess tan e04 0
service obligation or base monthly cons u-niption, which-
ever is applicable. If further curtailment is neces-
sary, curtaii<nent will commence and proceed seduentially
as necessary thr,�tyh Service Priority Classes VI, V, IV,
III, and II, provided that the curtailment to each suc-
ceeding lower numibered Service Priority Cl'Lss Shall b:-
at least 10% but nc _ nor L than L
=' ^- 20 � ,s-
higher numbered Serv_cg priority
Service Priority Class VII.
3. When Service Priority Class VII is curtailed to a level
of 35% of service obligation or bGsecor.-
sumption, any further necessary cur tG_�lments
made from next succeeding Service Priority Classes, �c-
ginning with Service Priority Class VI, until eaci, clus
through Service Priority Class iI reaches 3_)', levE. r
provided that each reduction, until a Service 'rior cy
Class shall be curtailed to the 35% level,
tain the interval of at least 10; but not more than 20
4. After Service Priority Classes V11, �, V, iv, III and
II are curtailed to a level o not ::iore than 35� of
service obligation -or base monthly co-;s-umption, Service
Priority Classes VII through II both inc'�i:,i.va wil]_ be
further curtailed by equal percenLage.0 until full (100�)
curtailment occurs.
5. Aftez ServIc:e Priority Classes V 1, VI, V, IVY
iI are in full (100%) curtailment, curtailment shall. :
commence in service Priority Class I as necessary.
Except as provided in Section 8.10 the Company will give
notice of curtailment in the cost ef`ect=ve manner possible
and as much in advance as possible with regard to tA*
exigencies and the number o cu.sto:Mers to be notified. the
curtailment shall be efILective as of the time and elate spy-
cified in the notice.
R�LG
"i
STATE Or T"DIANA
PUBLIC StVCE C01iMISSION OF INDIANA.
J'.. I:i. l . l) . }}.'. _JUJt � �L1I1. i _ON (ji' iiE 1
S? T l
J t., =t?.`. ,.. l7,0I111%"I.~.Jln\ Oi
C=S O. SUCH )
RIAl
C E 5 .. it r�ROCEDURE'S `1
J, . \ r
. oR -LJ 1 AI 1-MENT ANn Lo,aD
S DDIN'G OF ELE.0 i R C ENERGY USE AND
NONECONOMIC DISPATCHING 0" GENEFA-
Oti _7ECTRICITY BY THE COMMIS
-
Larry J. Waila.ce, C:7aix,.nr.
CAUSE No. �=
iNTERI�4 CNJ> i N'_
APPROVED. 1�s'
07, 6, 978, '_his entered an Order
a:rected
t0 ai1 eleCtrlC llt.i11t]es 1n Ino S*ate of Inci area s'.:bjeci.
tU the
jur1SCi1Ctlon of th,-, C,u1111111ss]Cn 'her eImi f ter sainet1re;Cr1'Cd
to
as "RcspondCr,Its") to show cause, why in emeri,cncy (1:i("1 11ot
exist with resl)ect to Caeration, transinisson anti dihti ii)u°
Loll
o� el ectric energy r.ue to the ci I'm "Ini shed i uel sopp
c-,, 0c al I that UT � 1`. ..,,;1r.0u`_' coal, availl<.M l oT t + Z,e 1 r
. ,.: fill
01 electricity for trap ,;issioi. and distribution
State Of Indiana as a fie_<.;i t of the United dine
America strike, and w} >' resl-:onsive emergency procedu:-es a-L
uractices to protect the th, safety and economic wo'
'being of the iti_e-:_ C, 1n,-Lana should r,or_ he i itL'
C.
deveioped and submi ..-, ' v s lid TOsPonse to the Cc,,:missicr.
for its consideration a.ld a-p roval.
Pursuant to said Or,ier the Com,eeission co ducter. an c :
ouniic ::caring or, F�,'-rija: 7, 1978. After :cns,dcra' On 0:
e, idence ,resented to the commission at said hearirl; t1C Cor!r.;ss0r
Tot:nd that an emer;?enc, did exist with res Oct to t e goner- ion,
ransmiss:ior, and distribution of electric energy due to i fished
le: sli riles, an(i sai(`l Cause was recessed un* irr day, February ,
�y at l�l.l e) 8.11 I'.5'. , fir' Room 9l)/ of the Comm.'s on Indoi
at Wil li h 1,jje awere ordered to present. evl< C nCe
to the Con;mision relating to the results obtained to date
of February ;Oth to ideas for voilultary conservation and to
l;lE CXlsL sltui.itioln k'ltn I''speCt t0 each e;ieI'at1nL
CO:;C 'rnln _s tnell lre:;eril]v a-val_able Fuel sU 7)--�-
,ac.rl Ikespo;:O, t w3`` a so ordered t0 PTO-O5e to the Comm l`;siC
e-ere encv tales,-iTact:res and I roceGures to be 1 1plei eTltC'C.1
✓ SCtiC L:l11it1es to make optimum 'use (ii exlst!ng tl)el
si)piles anc prcvoe for Curtailment of the use of electric y v.er
!n addltlon to -he Counsel who had appeared for, par-,— s o.'
record In rOCCe-C1 71 �S herelr: IDr1Cr to i—cbruary :0,lent
:randsen entered iris appearance on behalf of Wabash Valley
rot',er Ass000a`.ion, J. David Euber entered his appearance on I7J
r.
Khali-
of00S1E'=' �:i1Gr�;' iV15:On, Fred �iC- hihorn, jr. entered his IiDpEa: -
ance on bchLlf of 'northern Indiana Public Service Company, Thomas W.
VoJ r entered iris appearance on behalf of Indiana I Michi fan _! eCtrf -
Company, and Frederick P . Bamber ger entered his L_gyp Ear nc . o � hLl _
f Southern indiana Gas 4 Electric Company. At the conclusion of
the ev!02tiary hearings on February 10, 1978 hearings herein were
recessed until 10:00 a.m., EST, on Friday, February 17, 1978 in
Peom 907 of the Commission, irdianapolis, Indiana.
The Commission "wvs7g and
finds-,
and considered all � the uvidence
fully advised in -nu PIM .. ,L: .. 6..
That the Commission asjurisdiction nA
i iih0. the .'ll i�c'� � _ _ l °
of this Cause pursuant to the provisions of 1C 8-1-2-113; provided,
however, that this Commission recognizes that It has no
jurisdiction over wholes lie transactions by and amovg the
electric generating and/or distributing utilities with the
exception of transaczions between Hoosier Energy and its
members, This Commission's Cider, therefore, must be limited,
with the exception of Hoosier,to the retail sales of respondents;
2. That those Respondents in this matter who generate or
distribute electric energy have as their primary source of fuel
bituminous coal, such coal being used as a fuel source for
approximately 9 % of the electric energy generated in this state;
3. That on December K 1977, Onited Mine WorKl'. s of j;ile ice,.
commenced their strife, which at the data of this order has not 'r uc:.
scttiCd;
4. That shortly oFzar liecember 6, 107 uwuh tcra at
he,in dispatching its g necai.ion in a (Illnncr 04,-nwj i-o �'.. .
coal or to equalize the COa; `Supply at cAch r unnraiiiin . .ai lo;
discontinued dispatching un an economic basis whuru it d1b nu
conserve coal o. !equalize the coal supply at each L ncraw _..t.
that Such dispatching to meet the emergency is justified and in th�
public interest; and that any provision of the Omer of this
Commission in Cause No. 33 35-SI - 33735-S2, entered on larch 21,
1976, requiring electric utilities with generation to utilize -
economic dispatching of `anaration should be suspended from and
after December 6, 977 until the fuel emergency is over;
t,
S. Thai,Thai, after agreement is reached by the negotiaooys u-i,
L,
Uehal-f of the United Mine Workers of Amer'a-ca and the. Bituminous
Coal Operators AssoLiation, it is anticipated that it will take
a probable minimum of 21 days thereafter before no.' lial coal _-. i . .:
will be resumed to the electric utilities of this : iLU `.ti uh nc ._ -
e l e c t r i city.
b . ` hat despite the ideas for voluntary connc r va ; i U'1 a
and Lllrtai_;ii(,i,.. of tilE'. use of electric energy that In't'.'t✓ �n.c K,
customers of rconondents by the Governor of this s: :u, zhis C, _. ,
and respondents herein, the results of said pleas for Vo inva: ,
conservation and curtailment have been, at best, d2sappolming. Tn:
evidence heard on February 10, 1978 indicates that. Public Service
Rnmnnov n f T nc' i an-: CP 1 customers reduced -their consumption
:Tom 3 to 31, customers Of NIPSCO Jo, Indianapolis Power and
Light Can;any (IFAICO) S to 70, Hoosier Energy 3 1/2%, Lndiana
Michigan Electric Company JI & M) recorded no noticeable reduction
in load, and Southern Indiana Gas &Electric was the only respondent
who testified to any appreciable conservation, that being a 10",
eduction in usage as a result: of then" request for voluntary
reduction.
7. That the eery limited voluntary conservation efforts of
the CustC?mers of Respondents hnvc exacerbated the emergency situation
eyon6 that which was fCiu-6 to exist by the Commissiun by vlrtuc o tho
evilenc,_ presunted to i.. an , ibruary 7, 1973, and as of Abruacy 10,
i473 the evidence i0icated that the following utilities had he
following estimated ,lays' supply of fuel on :rand.:
PSI estimated 40 days of supply as of February iSth,
tiipSCO - estimated 67 days supply, but cautioned that
only 2/1 o_ their supply was generated internally and
that much of the balance of ?over necessary for serving
its customers had as its source power purchased from
other utilities faced with an emergency situation with
regard to their fuel supplies;
i G M estimated 45 to 49 days supply;
SIGECO - estimated 40 days supply;
AALCO - estimated 40 clays supply is of F ;ruary 10, 1976,
but indicated thai it snuid have 47 to SO days supply if
it was permitted to burn k1gh sulphur coal available
to it which coulee; no, p (': vnt y be burned bec'iu _„ of air
standards ;,:"LCO testified that it way >rc •-
quality ..•.
a petition to the i i:,.W authorities to permit it u 4uyn
said high sulphur coal and indicated tha,, It unt ciyLtu h-
it would be receiving permission to do so;
Hoosier Energy - est4ated 40 days supply.
1. No other generating utility in the State of Indiana
indicated that its fuel supplies were any better on the average
than those indicated specifically above, and the Commission is i;;!-r:-:c-
and has reason to believe that one or more Indian;. municiva . uti:lti`_
with generation capacity have an even more critical supply or fuel
than any o'" the respondents specifically referred to a!Ovc .
9. Witnesses for each of the above named ResponAnts, ns well
as witnesses testifying on behalf Off the Tndiana �� unicipa_ .- l wc!T!-
�Asso`i.a: ion and the Wabash Valley �� Por Assoc is i i oil, ly T . w
regard to their proposed emergency rates, Practice; and ) "A"'
A imps ementcd to r aRc optimum We Of existing uu ! . iPK • n`
provide for curtai2me.nt of the use of electric power to the .:x".cn—
necessary to extend fuel supplies until the emer cnc; wizz -uc
thereto is over. witnesses representing the coopera`-iv, a+'--
municipally operated utilities testified that the most
workable and effecnive procedure for them to follow w0ul he -mil
each Of them to follow and abide by the curtailment plan ap?licaule
to its principal suppi _r of purchased power. The Commission finds
Chat this pro:edure is acceptable and in the public intc.:rest.
10. Hoosier Energy has no retail customers, but it did propose
a'nl- to be foilcwed by all of its members for which it was the
principal supplier of purchased power. Hoesier's-3n, as tie"!i as
that of all of 4-he otter generating Utl iltll'a who proposed rat I
practices anc procedures for making optimum use of existing ruel
supplies and proviae for curtailment of the use of electric power,
followed the general outline of the "Emergency Energy Control Progra1
During a Fuel Shortage" prepared by an operation panel of the
r
l oord]'latloi, Rt:view GiT.ii.]. :tee .Or t}.e EastCer:tral t�.rC'a r:eliabillty COluICll
composed of c utilities located in the east central part
, to L:C.�R ;member systems are generally rO' i ant
of the: united �,.:�.�_.. .
on bituminous coa as the primary fuel for gcnerat4 on Of clectrac�ty.
Each of the investor owned utilities (IOUUIs) in the State of
Indiana which generate electricity for retail sales within. t;tc
State of ind ana (PSI, NIPSCC, SIGECO, IPALCO, and I t, M) pTo;;osec
aiaris which differed substantially, however, in certain impor�ar,t
de-cails .
11. William J. Sorrells, Director of the Indiana Enercy Group,
was called as a witness for the public. Mr. Sorrells testified that
it would be an administrative nightmare for his agency unless there
was one uniform statewide plan applicable to all Respondents not
only as to form but to timing of implementation due to the mfdia
overlap among service territories of Respondents.
would be optimally beneficial if this COm:missiOtl could order L11
Respondents to implement c;,e uniform curtailment pluri and if the
implementation thereof could. be synchronized. 't7owcver; we fin'
that the advantages o such uniformity of form and i.mplementaticn
are outweighed by the .' is> idea -stages that would be caused by possl`bie
jand,itory curtai l;nent arc Subsequent loss of employment. it ce.
r
.2rCas of the state serve: t)r 11tiliti(ts which in i'a('t h<,d `,i;li'ic
foci remaining; on hand to �,c:rve the minirnurn needs c1 its
required for continued of workers.
'1he ColraTiissioni also %ll.d`, that during t}1e E xtr� TiC a�
experienced by mane Indiar:a gas distributing utilities in �w.`:uary
February of 197/7, several different curtailment plans wee
applicable to the several distributing gas utilities due .o
the differences in their s:;,rvice territory charac`eristics
and gas supply, and that he very substantial curtailment cf
natural gas that was necessary in January and February otF
1S'%8,1o:7 which this Coirwnission takes administrative ;iotlCe; S1v es
the Commission a basis for finding that a uniform st:tew de
form and implementation cf curtailment based on plans
tailored to suit tie needs of the individual disributi.ng
companies can be efr.ectively implemented. We fur,her find, r:aw
ever, that due to the larger number of electric utilities over as
utilities whic,i overate in the state of Indiana an( tine
by every citizen of the state of Indiana on electricity -
not every citizen was a user of gas service - �irc good and
cor::nell:ng reasons why this Commission should adopt a plan wAh C';
is as uniform in nature as reasonably possible for
by R(-SF0I,dEnts .
12. Altnou"h each of the IOU Is and floc:,ier testified on
zebruary 10 th teat the plan it proposod wa best for it and that
it e.ould not comply with a plan uniformly applicable to e1l
Responders, theGmmissior: is informed any beiiv'ves gnat ;ion of
said Respondiznts had an opportunity to tho- oug;� y ��.:_mine the
pi ans su'c,ritted by t:-.e other Respondents prior to the hearing
which took plac- on February 10t::. The only evidence which the
Col-unlssion finds to be of substance with regard to the reasons
why certair of Respondent—s would be faced with difficulties in
fol'_owing a an� p1PSCO. I lan ot.'ner .P.ii. that proposed Dj% lt, was that o ife �G
by �; M d NIa Ni te s t i f i e d that it was a subsidiary
opera in , company oT the American Elcctr.c Power System 'A'-? -ir;d,
as a r,ember of the AEP power pooh., its curtailment plan. had to be
compatible witi1, tine AEP system plan and the plan for each of the
AEP operating subsidiaries. However, the Commission has no eviL;ncc
before it as to the prcv: s i or.s of the plans approved by t; c
re;tilatory c(mmissions of the other states within which s.ih idiar�es
of Ai=P operate, and has no reason to believe that such Gt'ier
regulatory agencies' judgment is an- better than ours with ::spec
to the appropriate plan for curtailment of electri use w
Mate of Indiana.
NIPSCO, however, by its .,videnLe has persuaded the CO-M-' 's -
that there are several distinguishing characteristics about its
system that require that any curtailment plan applicable to �: P C
+;, N differences. tiT PSCO � S fuel sUPT)l`
take into consideration. �,.o,v dif�e�ences. r'
was subs tantially grr-ater thin. any other : esponflertt who presented
r
testi-mony in this cause, with a substar_tial portion of its
capacity being fuele;.i f,, wes - a'rn coal not affected by the United
Mine 'Workers Associat—,Dn st: -Xe. In addition., a ✓er, subst
anti •,
-portion of NIPSC"S poi-,er - stributed to its ret.a i c'.-: tGr:.ers
is derived from purchases of wholesale power on firs. ;power
contracts. Actual i„-lementat on of a curtailment
bti; NIPSCO must also take i;.to considr r..tion e he fcict that a
rilatly' y small numCe:`' Of NIPSCO`S industrial CUStuI r l >E'
very high proportion of �,11 the electricity distr buLuG by
N PSCO.
15. We therefore find, after careful exam.
i..at_�,':
plan a 1 f 1 othe plans submitted by ResponCentti
_
consideration of the evidence of all witnesses-�,:t-� s
t,at :
Via) iectivt immeiately all utilities su
i
dic-Cion sh:11 order with appropriate notice to t; e_. Custo:-. rs,
ailment of show window, display lighting, ar::l outdoor ,oc—
n,aTki g lot and advertising lighting except for the ;r:i..i
-par neCeSSa!V to PTO- ect i'le and property Lind sl-ic,1e ll;_it;li :a.ted
sign ldei:..l-ying coi-i.mercial facilities that are optr.
and it will be so ordered.
lb D-at the ciirtalll,ent plan set i ort:1 in Append, x shGul
be 1mmediateiy applicable to all of the Indiana 1 nv ef ,tor Gwr7c01
ieneratl n.o utilities and to Hoos-1er Energy and its
the exception of Sections 7 and 8 thereof which sale. nQ-L ,Le
1pT"1liC-sii)lE' to Nil
'SCO
z
Appendix A, hereto Ns
appear as Appendix B
will be so ordered.
ll1C a�1nlC'
� Qi :�f� id � •
well as the S4;bal::tute sect''..()11ti whic,
hereto should be applicable to NIPSCO, and it
lc) Although the attached curtailment plan whic;, is-incor;or -_ea
rn
her eir� by reference does riot provide for a kilohratt hour nl::a� �y
charge for residential and small commercial users who do not comp-,.'
with she mandatory curtailment provisions thereof, said plans shou�G
oe mod.ified to provide for saiu penalty in the event that we find
widespread abuse and noncompliance by residential and small
CCU,,'.:-,,ercia1 users of the restrictions applicable to them under the
provisions of the at` ache" plan.
Id; That even though IPALCO has testified that as of
February 'i0, 1978 it had but a 40 day supply of fuel, we find tha`
the implementation of this plan as provided for at: the 40 day lcvei
need not immediately be implemented by IPALCO pending further
evidence which should be submitted by it in the contirlljed hearin,gs
!)-,rein to be held on February 17th with regard to a decis-ion or:
its petition for per7ission to burn low sulphur fuel in certain
of its ger.;era'ing facilities thereby extending its fuel supply, and
it will be so ordered.
Vie) That this cause should be in recess and that a&dit onral
evidence should be ! .card on Friday, February 17, 1978 a-M., � ,
in Room 907 of the commissionn, Indianapolis, Indiana at whicin tinF
each generating electric utility subject to the jurisdiction of
this Commission should be ordered to submit to the Commission its
current status with regard to tis existing fuel supplies. At such
hearing each generating and/or distributing utility subject to cur
jurisdiction should be o7-cyed to present evidence to the Comm:iss o;:
with regard to any problems experienced or anticirat d w t,: res;a�ra
to imniementation of the cL,rtailment plan approves hcreiri as we
as its experience, if any, with regard to reception of a;qd cor)11,
with said plan on behalf of its customers, and it w l Lo so G.C'.�u.
14. The Commission r::;ds that the curtailment "i".1n t, ci v
approved is subject to appropriate cla_itiCat ion and ,iii>t1
in the event evidence heard in subsequent procec:u.n6l" 1.n
indicate that such Clar llication or modification is in IL b2
interest of the public, and it will be so ordered.
RE FORE ORDERED BY THE PUBT:IC SERViCF '1'f"�' 0
iT IS THE _ '0,� _
1NDIA1�1A that the fLndings of fact and conclus"wons of
herein numbered 1 th ough 14 inclusively shall be Ci _`y a- '
ordered to be implemented, followed and applied. oy all _1 uric.
utilities subject to the jurisdiction of this Commission, anu ':na-
cause will be in recess unt�l Friday, February 17, 978 at 0:0;
EST, in Room 907 of the Commission, Indianapolis, indilna•
IT IS FURFEER ORDERED that this Order shall be of ective cn ara
after the date of its approval.
M
�.,ALLACE, POWERS AND PLASKETT CONCUR:
APPROVED: FEB 13 1978
1 hereby certify that the above is a trae
and correct copy of the Order as approved.
RET Y