Contract Amendment
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CENTRAL HUDSON
GAS & ELECTRIC CORPORATION
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353 MAIN STREET, BEACON, N. Y. 12508
896-6711
August 27, 1975
RECEIVED
AUG 25 1975
ElAINE H. SNOWDEN
Town of Wappinger
Wappingers Falls, New York 12590
Gentlerren:
The fuel cost incurred by Central Hudson to generate electricity
has increased nearly six-fold in the past year because of major increases
in the cost of residual oil used by the Company. The increased cost of
fuel related to the electric consumption of all residential, commercial
and industrial customers served under our filed rates has been recovered
for the past two years by application of a fuel cost adjustment charge to
those rates. The rates charged by the Company for street lighting, however,
are not now subject to a fuel cost adjustment charge. At present fuel
costs, the Company is absorbing about $400,000 annually of fuel costs
associated with street lighting, while all other customers are paying the
fuel adjustment charge.
By filings of November 28, 1973 and February 19, 1974 with the
Public Service Commission of the state of New York, Central Hudson sought
permission to amend its electric rates to produce additional annual revenue
of $12,177,100, but proposed that no portion of the rate increase be assigned
to street lighting customers. By its Order of November 22, 1974, the
Commission granted the proposed rate increase and accepted the Company's pro-
posal to assign no part of the increase to street lighting. The Commission
did direct, however, that a fuel cost adjustment clause be added to street
lighting contracts so as to eliminate the possibility that other ratepayers
may be subsidizing street lighting customers.
Accordingly, the enclosed contract amendment provides for the
application of a fuel cost adjustment clause to the electricity used for
street lighting in the following Street Lighting District effective
December 1, 1975.
Town of Wappinger - Cameli Acres Lighting District
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Town of Wappinger
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August 27, 1975
The effective date of the enclosed amendment is the anniversary
date of the subject contract, as set forth in Section E. thereof, on which
date the contract is terminable by either party. The amendment is sub-
mitted to you in lieu of a notice of termination and submittal of an entirely
new contract, but this letter shall constitute such notice in the event the
proposed amendment is not accepted as of the anniversary date.
The proposed fuel cost adjustment applicable to street lighting
will be identical to that applicable to our filed rates except that the
adjustment will be determined from a base fuel cost of $.003 per kilowatt-
hour which is the amount of fuel cost included in present street light rates.
If you have any questions regarding the enclosed contract amend-
ment, please feel free to contact us. In view of the increasing costs of
energy faced by us and all of our customers, we sincerely hope that you will
act favorably on this amendment to street lighting contracts.
Yours very truly,
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Customer Relations Manager
EVConte/cep
Enclosure
CENTRAL HUDSON
GAS & ELECTRIC CORPORATION
353 MAIN STREET, BEACON, N. Y. 12508
896-6711
August 27, 1975
Town of Wappinger
Wappingers Falls, New York 12590
Gentlemen:
Central Hudson Gas & Electric Corporation (hereinafter called the
Company) hereby proposes to amend the contract of October 22, 1971 under
which street lighting is supplied in the Cameli Acres Lighting District to
the Town of Wappinger. Said amendment includes the addition of a new
Section B.2.c. and revision of Section C., as set forth below, which will
become effective on December 1, 1975.
B.2.c. Fuel Cost Adjustment
The Lamp Charges stated in Sections B.l. and B.2.a. will be sub-
ject each month to an adjustment, increase or decrease, based on the
Company's c9st of fuel and energy during the preceding month. Said adjust-
ment will be determined each month in the same manner as the similar adjust-
ment set forth in General Information Section 20 of the Company's tariff,
P.S.C. No. 14 - Electricity, or any amending or superseding section or tar-
iff, but utilizing a base cost of fuel of $.003 per Kwh. Said adjustment
will be applied each month to the applicable Kwh. determined as the product
of (i) the total wattage in kilowatts of lamps in service and (ii) the
applicable burning hours based on the lamp ratings and monthly burning hours
set forth on Schedule II attached.
C. Billing and Payment
After the effective date of this amendment, advance bills rendered
in accordance with Section C. will include an estimated Fuel Cost Adjustment
pursuant to new Section B.2.c. above.
Town of Wappinger
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August 27, 1975
Please indicate your acceptance of this amendment where indicated
below and return both copies to us for our formal acceptance after which we
will return one copy for your records. When thus accepted by both parties,
this amendment shall constitute a contract binding upon the parties hereto
and their successors and assigns.
Yours very truly,
CENTRAL HUDSON GAS & ELECTRIC CORPORATION
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By ICLC;).v/~7?;:yl/
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Customer Relations Manager
pursuant to a resolution duly adopted as
provided by law, a certified copy of which
is attached hereto.
By
Accepted ~e-- Co
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CENTRAL HUD ON GAS & YfCTRIC COR~RATION
By . "C7,.
Vice President
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CENTRAL HUDSON GAS & ELECTRIC CORPORATION
Schedule of Wattage Ratings of Street Lights and
Monthly Burning Hours Used to Determine
Fuel Cost Adjustment
A. Wattage Ratings
SCHEDULE II
Incandescent Lamps
Lumen Wattage Rating
Rating (kilowatts)
Mercury Vapor Lamps
Lumen Wattage Rating
Rating (kilowatts)
320
600
1,000
2,500
4,000
6,000
10,000
15,000
.040
.058
.092
.189
.295
.405
.620
.860
3,600
7,000
11,000
15 ,000
20,000
57,000/60,000
.126
.208
.296
.455
.455
1.080
21,000
.340
47,000
Sodium Vapor Lamps
.470
Flourescent Lwmps
B. Monthly Burning Hours
January
February
March
April
May
June
420
350*
340
300
270
240
July
August
September
October
November
December
*360 in Leap Year.
260
290
320
370
400
440
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of the
At a regular meeting of the
Town of Wappinger
Town Board
held at Mill St., Wappinqers Falls,NY on
November 10. 1975
the following resolution was ~oved by Councilman Clausen
,
seconded py Counc ilman Jensen
, and duly carried.
WHEREAS, the agreement dated August 27, 1975
wi th Central
Hudson Gas & Electric Corporation for lighting the streets and highways
in the
CAMELI ACRES LIGHTING DISTRICT
has been
amended to include Section B.2.c., Electric Fuel Cost Adjustment and re-
vised Section C, with said amendment to be effective December 1, 1975
and
WHEREAS, the Central Hudson Gas & Electric Corporation has sub-
mitted an amendment to include Section B.2.c. and revised Section C three
months prior to said effective date,
NOW, THEREFORE, BE IT RESOLVED that the amendment dated
August 27, 1975
as submitted by the Central Hudson Gas &
Electric Corporation be and is hereby approved, and it is further
RESOLVED that Supervisor Louis D. Diehl
be and is hereby authorized to execute said amendment on behalf of the
Cameli Acres Lightinq District
I hereby certify that this is a copy of a resolution passed by
the Town of Wappinger Town Board at a meeting
held on November 10, 1975
Signed
Title
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Town Clerk, Town of Wappinger