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TUESDAY. APRIL 15. 1997 <br />noted the potential for "unbundling" (separating generation, <br />transmission, and distribution services) down to the retail level. <br />Several Council members expressed concern regarding the possibility of <br />retail wheeling, noting the City's potential for stranded costs in the <br />event large electric customers were able to purchase their supplies <br />from other sources. Vice-Mayor Crabtree suggested a resolution be <br />prepared expressing Council's opposition to retail wheeling within <br />municipal systems. <br /> <br />327 <br /> <br />Mr. Gross noted the 1992 Appalachian Power Company (now known as <br />American Electric Power) rate case in which the City will potentially <br />be refunded $1.3 million. Mr. Gross reviewed the solicitation process <br />undertaken by BRPA to find a power supplier, with the ultimate <br />selection being Cinergy. The BRPA's projected savings from this seven- <br />year contract over the AEP proposal are 8117,148,000. The City's <br />projected savings over current rates for seven years are 811,918,000. <br /> <br />Mr. Ritts reviewed the details of the proposed Cinergy contract, <br />stating that he knew of no other contract offering a lower fixed cost <br />in the U. S. Mr. Ritts noted the contract offered a fixed price of <br />2.47 cents per kwh, with options to reduce the level of purchases in <br />future years if market prices are lower than the fixed price contained <br />in the contract. Mr. Ritts also stated the City could lower its <br />Cinergy purchases in the event that retail wheeling is required for the <br />City. Finally, Mr. Ritts highlighted contract provisions regarding <br />Cinergy's efforts to work with the City in its economic development <br />efforts and possible 3oint purchasing arrangements. <br /> <br />Mr. Wagoner reviewed Cinergy's current retail, wholesale and power <br /> <br /> <br />