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NK OKs Power Deal

June 15, 2011

NEW KNOXVILLE — The New Knoxville Village Councilors met Tuesday for their monthly meeting to approve a contract with American Municipal Power (AMP) to purchase 300 kilowatts in the AFEC project and declared it an emergency.

Village Administrator Rex Katterheinrich said the 300 kilowatt purchase was on the conservative side because the recommendation from AMP was for 900 intermediate kilowatts.

“We felt the best way to go was to err on the conservative side because it’s intermediate power,” Katterheinrich said.

Mayor Keith Leffel said one of the primary concerns was affordability.

“We want to make sure we get a project that’s affordable for mid-range electric,” Leffel said.

Leffel said the purchase would be good for the village.

“We’re purchasing something that a lot of those unknown variables aren’t there for,” Leffel said. “It’s probably going to be a good purchase for us.”

Councilors also approved a contract extension with Maharg, keeping the current terms and prices.

“I feel it’s been a good deal for us and for them,” Leffel said.

In other business, councilors:

• Approved the May 10 meeting minutes.

• Approved the meeting’s agenda.

• Approved placing the fire levy on the November ballet and waived the third reading.

• Approved a pay ordinance.

• Approved the appropriations amendment, which increased the income tax refund $8,000 and declared it an emergency.

• Approved to advance an amount not to exceed $3,000 from the General Fund to the Fire Levy Fund and declared it an emergency.

• Approved the beer permit for the July 4th celebration.

• Approved the disposal of a Dell computer.

Councilors entered into an executive session to discuss litigation. No action was taken when they reconvened in regular session.

The next regular meeting will be held at 7:30 p.m. July 12 at the village hall.

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