HomeMy WebLinkAboutA006 - letter from Charlie Hammer to Mayor and City Council, June 4, 1982 �Jµvc�S�Ydv.c�'
AIN
CITY 1i I
I 1 50010
�— 515/232-6210
June 4, 1982
Honorable F. Paul Goodland, Mayor
And Members of the City Council
of the City of Ames, Iowa JUN 7
In Re: Electric Service to Sundstrand
Dear Mayor Goodland and Council Members:
For our meeting of June 15, we will be receiving a report of
the recommendation of the Electric Utility Operations Review
and Advisory Board recommending that the current Sundstrand
contract be extended 90 days to allow time for negotiation
of a contract to set rates for the next two years .
The concept of maintaining the status quo with Sundstrand
for another 90 days until a more permanent arrangement can
be established is one that I can support. However, I do not
support doing so by means of "contracts" which purport to
set a rate or charge for service and energy. That approach
is not consistent with the general practice of the Ames
Municipal Utility, nor is it consistent with the practice of
the other electric utilities in Iowa.
Therefore, I propose that at the June 15 meeting the Council
vote to enact an ordinance that will set a rate applicable
to Sundstrand for the July 1 to October 1 period.
This rate will maintain the status quo pending a decision on
what the rate should be prior to the time when there is
completed a comprehensive cost of service and rate study for
all classes of customer.
The post-ninety day interim rate should be one negotiated
along the following guidelines:
1 . Sundstrand' s electric utility bill for energy, fuel
adjustment and demand charges should be comparable to that
which it would have under the filed tariffs of other utili-
ties in the Ames area.
Mayor & Council 2 June 4, 1982
2 . Sundstrand's electric utility bill in Ames should be
comparable to that which would be paid if the Ames plant
were located at the site of other Sundstrand plants being
served by fossil fueled utilities.
That approach will' be, I believe, fair to both Sundstrand
and the other customers of the Ames Municipal Utility.
Yours truly,
Charles L. Hammer
Council Member
cc City Manager
Sundstrand Plant Management
Chairman & Members of the
Utility Advisory Board