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<br />,)'{) <br /> <br />MONDAY <br /> <br />APRIL 20, 1981 <br /> <br />A special and duly-called meeting of the Council of the City of Martinsville, <br /> <br />Virginia, for the purposes of (1) considering a proposed negotiated settlement <br /> <br />with Appalachian Power Company regarding APCo's recently-imposed wholesale <br /> <br />rate increase upon its municipal wholesale electric customers and (2) to <br /> <br />consider with the Martinsville City School Board said Board's 1981-82 budget <br /> <br />requests, was held Monday, April 20, 1981, in the Council Chamber, City Hall, <br /> <br />beginning at 3:00 P.M. With the exception of Vice-Mayor William C. Cole, Jr., <br /> <br />who was away from the city, all members were present, viz., Barry A. Greene, <br /> <br />Mayor and presiding officer; L. D. Oakes; Henry C. Reed; and Francis T. West. <br /> <br />Also present, for the second-named item of business, were members of the City <br /> <br />School Board and the City School System staff. <br /> <br />After the invocation and the stating of the purposes of this meeting, Council <br /> <br />approved the negotiated settlement with Appalachian Power Company, as described <br /> <br />in the following report by City Manager Edmonds, and continued for discussion at <br /> <br />its forthcoming special May 5th meeting the following statement by Mayor Greene, <br /> <br />pertaining to this matter: <br /> <br />Report by City Manager Edmonds <br /> <br />Background <br /> <br />Martinsville is one of seven municipal wholesale electric customers of <br />APCo, including Salem, Bedford, Danville, Radford, Richlands, and <br />Virginia Tech. <br /> <br />Purchase of power by a wholesale customer is subject to a "ws" Tariff, <br />which must be approved by the Federal Energy Regulatory Commission (FERC). <br />Prior to the increase under negotiation, the wholesale rate was last <br />increased by 5.1% on January 1, 1980. The increase at hand of 19.2% <br />was first submitted by APCo to FERC in January, 1981. <br /> <br />A first effort of the "electric cities" to negotiate a reduction in the <br />proposed increase took place in a meeting of January 12. No progress <br />was made. Subsequent to this meeting, FERC denied the cities' request <br />for a five-month suspension of the rate, allowing the increase to take <br />effect on February 2, 1981, subject to an adjudicatory hearing. <br />