Minutes 01/31/1983 - Laserfiche WebLink

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2 JANUARY 31, 1983 MONDAY Representatives of R. W. Beck & Associates then presented, through various exhibits and narration, (1) an introduction and overview of the project, (2) project cost estimates, (3) estimated project benefits, (4) project economics, and (5) future activities. In so doing, these representatives informed Council that information necessary to respond to deficiencies in the project license application (initially filed in March of 1982) has been compiled and the application was re-submitted on November 30, 1982, to the Federal Energy Regulatory Commission, with the expectation that--with the submittal of some supplemental information already compiled--the application will be accepted for processing by the Commission either within the immediate future or soon after June 15, 1983. In a recalculation of the project cost estimate, the consulting engineers projected, as of January of 1983, a construction cost of $55,556,000.00, as compared with $57,506,000.00 estimated in November of 1982. The viability or feasibility of the project, the engineers pointed out, hinges upon the value of power from the project (i.e., the cost of energy supplied by Appalachian Power Company, contingent to a great extent upon whether APCo proceeds or does not proceed with the construction of one or two planned coal-fired electric generating plants) and upon bond interest rates (which have escalated considerably within the last two years) at the time bonds to finance the project are issued, assuming that the Federal Energy Regulatory Commission accepts the City's license application and, following the processing thereof over the next two-year period, grants a license to the City for the project. In response to a question concerning the feasibility of the proposed project, the consulting engineers informed Council that, were the application processing already completed and the project license issued as of now, and considering current bond interest rates along with other factors, the project would not be feasible. The consulting engineers then recommended: .- (1) that the City proceed with matters involving the license application;