Minutes 06/23/1987 - Laserfiche WebLink

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54 TUESDAY, JUNE 23, 1987 that, because of a difference between APCo's recently-applied rates and its approved rates charged the City of Martinsvi11e, a refund credit will be issued to the City. In addition, Mr. Brown presented a comparison of the major issues (during negotiations) in Appalachian's initial contract offer and the final agreed-upon contract (which comparison was prepared by the City's legal advisors), indicating that the final agreed-upon contract is much more attractive to the City than was Appalachian's initial contract offer. After some discussion, upon motion (duly seconded and unanimously carried), Council approved the developed contract and authorized City Manager Brown to execute same on behalf of the City. City Manager Brown also presented a proposed contract between the City of Martins- vi11e and the U. S. Department of Energy (the latter acting by and through the Southeastern Power Administration, known as "SEPA"), whereby the City would be or will be allowed, effective July 1, 1987, to purchase an allocated portion (viz., 1,620 KW, or 13%) of the total "wholesale" electric power or energy generated by the U. S. Corps of Engineers' Philpott Dam generating facility, to be "wheeled" to the City by Appalachian Power Company under APCo's contract with "SEPA", with an esti- mated "savings" to the City of $107,740.00 for the next twelve months. After some discussion, upon motion, duly seconded and unanimously carried, Council approved the proposed contract with "SEPA" and adopted a resolution authorizing City Manager Brown to execute said contract on behalf of the City. Meanwhile, Councilman McClain inquired as to the estimated (or actual) charge per Kw under the contract and Council requested that the City Manager monitor--and report to Council on--the power cost(s) and revenue(s) resulting from this arrangement. The adopted authorizing resolution follows: The City Council of the City of Martinsvi1le, Martinsvi1le, Virginia, in regular session this 23rd day of June, 1987, having considered and found acceptable a contract designated as Contract No. 89-00-1501-905 with South- eastern Power Association for the purchase of power, hereby authorizes and directs George W. Brown, City Manager, to execute said Contract with the Southeastern Power Association on behalf of the City of Martinsvil1e, Virginia.