Minutes 11/08/1999 - Laserfiche WebLink

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November 8, 1999 A special, work session meeting of the Council of the City of Martinsville, Virginia, was held on November 8, 1999, in the Administrative Conference Room, City Hall, beginning at 7:30 P. M., with Mayor Mark Crabtree presiding. Council Members present included: Mark A. Crabtree, Mayor; M. Gene Teague, Vice Mayor; and Council Members Bruce H. T. Dallas, Elizabeth H. Haskell, and Terry L. Roop. City Manager Earl B. Reynolds, Jr., stated, "lt's a changing environment for electrical utilities." He introduced Eugene Richardson, Electrical Division Manager and President of the Municipal Electric Power Association. Mr. Richardson, stated, "A major issue is service territory. As of June 30, 1999, those we were serving are now our customers. There's three electrical islands in our territory, receiving electricity from AEP [American Electric Power]: Tultex, Hooker, and Pulaski. We may, however, get them as customers. The issue of deregulation is contained in State Senate Bill 1269. It's been an uphill battle without deep pockets for the public owned utilities. Munidpalities have never paid tax to the State for electrical revenue. This Bill would require us to stad paying on January 1, 2001. We're going to pay it; the only choice is whether we pass it on to the customers." Vice Mayor Teague asked, "We pay AEP, AEP pays the State, and we charge our customers?" Mr. Richardson replied, "Correct. Based on FY 1997 data, the City would have paid $216,745.96 according to the Bill." Council Member Roop asked, "What is the average consumption by the residential customer?" Mr. Richardson replied, "As a rule of thumb, 800 - 1,000 kilowatts per month." Wade Bartlett, Finance Director, added, "That would be an increase of approximately $0.38 per month." Council Member Haskell asked, "Are these all new taxes?" Mr. Richardson replied, "Not exactly. Some are replacing others." Vice Mayor Teague asked, "Will the