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214 <br /> <br />NOTICE OF SPECIAL MEETING <br /> <br />A SPECIAL MEETING OF THE COUNCIL WILL BE HELD ON Monday, <br />October 5, 1992 AT 5:30 p.m. IN THE Basement Conference Room. <br /> <br />THE PROPOSED AGENDA IS AS FOLLOWS: <br /> <br />Work session: Impact of Federal Energy Regulatory <br />Commission Order No. 636 (known as Mega-NOPRA) on <br />City's gas utility and other gas issues. <br /> <br />BY ORDER OF THE MAYOR <br /> <br />BY Jeanne Cox (signed) <br /> <br />BASEMENT CONFERENCE ROOM - October 5, 1992 <br /> <br /> Council met in special session on this date with the <br />following members present: Ms, Daugherty, Rev. Edwards, Ms. <br />Slaughter~ Mr. Toscano, Mr. Vandever. <br /> <br /> Mr. Steve Rubeck of The Columbia Group, met with City <br />Council to discuss the implications of Federal Energy <br />Regulatory Commission Order ~636 (Mega-NOPRA) on the City's <br />gas utility. <br /> <br /> Mr. Rubeck explained that the City will now need to deal <br />with arranging its own contracts for gas purchases and with <br />increased competition from other utilities such as oil and <br />electric. Mr. Rubeck stated that the risks of the new order <br />will include potential gas curtailments and loss of customers <br />if unable to guarantee the availability of gas and the <br />opportunities will include lower gas costs and increased <br />margins. Mr. Rubeck stated that Columbia Gas will no longer <br />be able to offer bundled gas sales and, in fact, no longer <br />wants to sell gas. Discussing privately owned versus <br />municipal gas companies, Mr. Rubeck explained that private <br />companies pay significant federal taxes (34% of profits <br />currently) but municipal companies pay no federal taxes and <br />therefore any profits can go into the general fund and can <br />also be used to provide incentives for marketing gas. <br /> <br /> Responding to a question from Mr. Toscano about what <br />steps the City needs to take at this time, Mr. Rubeck stated <br />that the City needs to immediately begin working on <br />arranging for gas purchases and needs to decide what will be <br />done to combat competition with other utilities. <br /> <br /> Mr. Tom Hill of Rugby Road, raised questions about <br />having the City's gas system managed privately. <br /> <br /> Mr. Rubeck replied that the City's system would be such <br />a small part of any private investor that the City would <br />likely receive little attention and once the City was out of <br />the gas business for as much as a year, they would, <br />practically speaking, be out of the business for good because <br />of the changing and technical nature of the business. <br /> <br /> The meeting was adjourned. <br />Pre siden~~~- ' <br /> <br /> <br />