The Adel City Council voted unanimously last week in favor of an electrical rate contract with a new industry prospect, codenamed by economic development officials as “Project Midnight.”
During the Monday, Nov. 7, meeting, City Manager John Flythe said he had previously asked the Council to grant Mayor Buddy Duke the authority to execute a 10-year electrical service contract with the industry prospect.
Flythe provided the council members with a copy of that contract along with a sevenmonth interim contract that will utilize an existing rate tariff since the industry will not be in full operation during this time. Once the industry is operating at full capacity, they will then shift to the rate tariff associated with the 10-year contract.
Flythe said the Council’s approval needs to be contingent upon the Economic Development Commission completing all of their negotiations before executing.
Councilman Michael Purvis made a motion authorizing Mayor Duke to execute the contracts contingent upon the execution of the memorandum of understanding between the company and the EDC. Councilman Greene seconded. The decision in favor was unanimous.
In other business, Ordinance #16-04, implementing a guaranteed fixed base rate (GFBR) for industrial customers who meet certain criteria – specifically a metered demand for the current month equal to or greater than 8,000 kilowatts – was presented to the Council for a first reading. The second reading and adoption of the ordinance is scheduled for the Monday, Nov. 21, meeting.
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