Agenda 10/12/1999 - Laserfiche WebLink

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TUESDAY, JULY 13, 1999 185 Mr. Eugene Richardson, Manager of the City's Electric Department, presented the background on this Resolution, explaining that municipal electric operations had historically been built using public bonds and debt, and that proposed changes in State laws currently threatened this ability and the financial stability of municipal electric operations. Mr. Richardson stated that local control and community choice needed to be preserved for the benefit of the municipal utility customers, and that it was important to remember that municipal electric utilities were non-profit operations. Mr. Richardson went on to state that the large investor owned utilities wanted to force taxes upon the municipal electric operations that would drive their rates up, and that municipal electric operations such the City of Martinsville's needed to do all they could to preserve the ability to set low rates and use the profits from operations to keep rates as low as possible to their customers. He then noted that Congressman Virgil Goode had already signed as co-sponsor of the Protection Act. Council Member Haskell asked if the State's Senators had signed on yet, and was told that they had not, but that efforts were underway to obtain their support. Mr. Richardson stated that Senator John Warner had promised to reply to the request for his support in about one week. Vice Mayor Teague then stated that this kind of issue was what made people sick about politics, noting that the big electric utilities would lobby aggressively to pass legislation that would hurt taxpayers and drive up the cost of their utilities, and expressed his hope that the rest of the State's Congressional contingent would sign on to support the Act. Council then unanimously adopted the following Resolution by the following vote, all members voting: Vote: 5-0 Yeas: (5) Crabtree, Dallas, Haskell, Roop, Teague. Nays: (0) None