Minutes 04/12/1983 - Laserfiche WebLink

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r" '- TUESDAY APRIL 12, 1983 /- consultant (Mr. Frederick H. Ritts, of the law firm of Ely, Ritts, Pietrowski and Brick- field, Washington, D.C.) on behalf of the City of Martinsville and other entities (who purchase at wholesale electric energy from Appalachian Power Company) with Appalachian Power Company in connection with a filing by APCo for a wholesale rate increase with the Federal Energy Regulatory Commission, Council unanimously adopted the following resolution approving said negotiated settlement and the agreement confirming said settlement: - WHEREAS, Appalachian Power Company, on September 30, 1982, filed a rate increase request of $942,000 per year for the Cities of Bedford, Danville, Martinsville, Radford, Richlands, and Salem, and Virginia Polytechnic Institute and State University with the Federal Energy Regulatory Commission ("FERC"); and WHEREAS, on November 30, 1982, the FERC suspended the effective date for five months, thereby allowing the rates to become effective on May 1, 1983, subject to refund after a trial and final order; and, WHEREAS, Appalachian Power Company and the customers have negotiated a settlement which: 1. Reduces the proposed increase to approximately $509,000 for the period of April 1, 1983, to March 31, 1984; 2. Allows the new rates to become effective in two steps, on April 1, 1983, and October 1, 1983; 3. Prevents Appalachian from implementing another rate increase before July 1, 1984; - 4. Requires Appalachian and the wholesale customers to negotiate new wholesale power supply contracts before the existing contracts expire; 5. Requires Appalachian and the customers to negotiate to determine whether it is possible to reach agreement on a new rate (which would be effective on July 1, 1984) before Appalachian unilaterally seeks a rate increase before the FERC; 6. Requires the customers to agree not to sue Appalachian under the anti- trust laws on matters related solely to the settlement rates; and 7. Allows the customers to purSl:e any legal rights and remedies at the FERC and in the courts related to Appalachian's fuel costs for coal obtained from affiliated company coal mines; Now, therefore, BE IT RESOLVED by the Council of the City of Martinsville, Virginia, in regular meeting assembled and with all members being present, that it does hereby approve a settlement agreement with Appalachian Power Company, which settlement contains the principles hereinabove set forth.