Minutes 04/15/1997 - Laserfiche WebLink

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J26 TUESDAY. APRIL 15. 1997 A special and duly-called meeting of the Council of the City of. Martinsville, Virginia, with Mayor George B. Adams, Jr. presiding, was held Tuesday, April 15, 1997 in the Council Chamber, City Hall, beginning at 3:00 P.M. All members of Council were present: George B. Adams, Jr., Mayor; Mark A. Crabtree, Vice-Mayor; Bruce H. T. Dallas; Elizabeth H. Haskell; and M. Gene Teague. The purpose of the special meeting was to continue Council's review of the City Manager's proposed FY 97-98 budget. The first item to be considered was the Electric Department and the proposed contract with Cinergy for purchase of the City's wholesale power requirements. Present were Eugene Richardson, Electric Division Manager, Duane Dahlquist, Director of the Blue Ridge Power Agency (BRPA), Bob Gross and Jack Madden of GDS Consultants, Gregory Wagoner, Lori Spence and Steve Cozey of Cinergy, and Frederick Ritts, legal counsel to the BRPA. Mr. Dahlquist began the meeting by reviewing the history of the BRPA and its activities in negotiating wholesale power agreements with PSI Energy (which later became Cinergy) on behalf of four of the municipal electric divisions in the BRPA. Beginning in August, 1994, 7 megawatts of the City'ssupply began to flow from this source. Beginning July 1, 1998 it is the BRPA's intention to begin purchasing all of Martinsville's wholesale power (with the exclusion of the small portion of power supplied by the Southeastern Power Agency and the City's own generation facility) from Cinergy, rather than American Electric Power. Mr. Gross stated that Martinsville was fortunate in not being obligated to a long-term power supply agreement at this time of deregulation of the wholesale power market. Mr. Gross reviewed the Federal regulatory actions which had made this wholesale power alternative possible and