SPECIAL UTILITY COMMITTEE

A Special Utility Committee meeting was held on January 6, 2003, at 5:00 p.m. with Chairman Ruane presiding. Members present were Mr. Ritter, Mr. Speed, Mr. Lambert, and Mr. Snaman. Others present were Mayor Hutchison, Mr. Carey, Mr. McGlumphy, Mr. Pitts, Mr. Salters, and Mrs. Williams.

AGENDA ADDITIONS/DELETIONS

Mr. Snaman moved for approval of the agenda, seconded by Mr. Lambert and unanimously carried.

BRIEFING - ELECTRIC RATE STUDY - BURNS & MCDONNELL

As a follow up to the Special Utility Meeting of October 30, 2002, a presentation was given by Mr. Brian Farber, Project Manager with Burns & McDonnell, describing the “Revenue Requirement Review” phase of the Electric Rate Study.

Mr. Farber presented detailed information regarding the Review of Revenue Requirement Topics (Attachment #1) which is necessary for moving forward with the next phase of the project, “Detailed Cost-of-Service”.

Responding to Mr. Snaman, Mr. Farber indicated that, to date, Dover’s current and future electric rates have not been compared with competitors’ electric rates. He indicated that comparisons would be a part of the Rate Design Phase of the Study.

Mr. Lambert and Mr. Snaman stressed the importance of the City of Dover remaining competitive and sensitive towards electric rates.

Responding to Mr. Speed, Mr. Farber stated that he realized the importance of using accurate figures when referencing assumptions.

Mrs. Williams suggested the possibility of having differential electric rates for those customers who live outside the City of Dover property boundaries and requested the percentage of those customers.

After much discussion, Mr. McGlumphy recommended that members of the Utility Committee, the City Manager, and Mrs. Mitchell, Finance Director, meet and provide recommendations to Mr. Farber so that he may move forward with the next steps of the study.

Mr. Lambert moved for adjournment, seconded by Mr. Snaman and unanimously carried.

Meeting Adjourned at 6:30 P.M.

Respectfully submitted,

Eugene B. Ruane

Chairman

EBR/lcg

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