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<br />Z50 <br /> <br />JANUARY 10, 1984 <br /> <br />TUESDAY <br /> <br />sections or the substitution of new language therein. <br /> <br />By letter (from J. A. Gustin & Associates, a tenant in the McCollum-Ferrell building) <br /> <br />and in person (Mr. Raymond D. Ferrell, of McCollum-Ferrell Shoe Store, and Mr. Francis <br /> <br />T. Falls, of Piedmont Trust Bank), several of the City's commercial electric customers <br /> <br />registered their objections to implementation by the City of regulations and rates im- <br /> <br />posed by a new electric tariff (identified as Tariff No. 12) approved and authorized on <br /> <br />October 8, 1983, by the State Corporation Commission for Appalachian Power Company, <br /> <br />whose tariffs the City has paralleled for many years (a policy officially reaffirmed by <br /> <br />Council's action taken on July 27, 1976, and adopted by ordinance on August 10, 1976). <br /> <br />One provision of this new tariff requires customers (under "Small General Service"), <br /> <br />whose peak demand during the preceding twelve months was 50KW or more during anyone <br /> <br />month, to contract with the City's Electric Department on the basis of such peak demand, <br /> <br />with billing by the City to be not less than 60% of contract capacity but no less than <br /> <br />50KW per month, with adjustments thereof in each succeeding year based on each preceding <br /> <br />year's peak demand. In contrast to Mr. Ferrell's assertion that his building's electric <br /> <br />energy costs will be increased by some 16%, which includes tariff increases in basic <br /> <br />customer charges and energy costs, estimates by the City indicated increases (over the <br /> <br />replaced tariff) of 7.18% for basic charge, 15.8% for billing demand charge, and 1.3% <br /> <br />for energy costs. As to Mr. Gustin's inference that increased electric energy costs, <br /> <br />either direct or reflected in increased office rental cost, might prompt him or other <br /> <br />business or professional firms to move outside of the City, it was pointed out that <br /> <br />Appalachian Power Company serves all areas surrounding the City and the same electric <br /> <br />tariffs would apply. In response to a suggestion that the City discontinue paralleling <br /> <br />Appalachian's tariffs, City Manager Edmonds warned that such departure would automat- <br /> <br />ically place Council in the "rate-setting business", fraught with many complexities and <br />