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<br />12 <br /> <br />TUESDAY <br /> <br />JANUARY 27, 1981 <br /> <br />for five months, noting that the Commission suspended the effective date only for one <br /> <br />day (viz., February 2, 1981) with the stipulation that, in the event the Commission does <br /> <br />not grant any or all of the requested rate increase, APCo (under bond) will refund to <br /> <br />these wholesale customers such amounts as may result in overcharges, calculated on the <br /> <br />dis-allowed portion of said rate increase. <br /> <br />Council unanimously authorized City Manager Edmonds to register with the City's representatives <br /> <br />to the United States Congress the Council's unanimous objection to--and protest against--the <br /> <br />recent ruling by the Federal Internal Revenue Service declaring (under IRS Revenue Procedure <br /> <br />80-55) that commercial banks, savings and loan institutions and all other depository <br /> <br />institutions, which use tax exempt bonds as collateral for the deposit of funds by states <br /> <br />and municipalities, will no longer be tax-exempt for the interest paid on deposits of such <br /> <br />governmental units. While such a ruling will have no immediate impact, as pointed out by <br /> <br />Councilman Reed (retired President of The First National Bank of Martinsville & Henry County), <br /> <br />Mr. Reed warned that its impact could be adversely drastic in the future upon the municipal <br /> <br />bond market. <br /> <br />City Manager Edmonds informed Council that 14 of the 15 members of the Municipal Electric <br /> <br />Power Association of Virginia have agreed to participate jointly to pursue development of <br /> <br />hydroelectric projects at various Federal dam sites, with the City's cost to be $4,140.00. <br /> <br />By letter dated January 15, 1981, Mr. Stewart E. Farrar, Hearing Examiner for the State <br />Commission <br />Corporation/,informed Council that--on the basis of testimony presented and considered--he is <br /> <br />recommending that the Commission deny a recently-filed application by Central Telephone Company <br /> <br />of Virginia ("CENTEL") for permission to institute the "Optional Local Measured Service" <br /> <br />("OLMS") rate structure proposed for "632" and "638" telephone exchanges in the Martinsville <br /> <br />area, against which proposed rate structure Council has already officially gone on record. <br />