Repository: UIHistories Project: Board of Trustees Minutes - 1938 [PAGE 578]

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576

BOARD OF TRUSTEES

[December 3

A G R E E M E N T WITH ILLINOIS IOWA P O W E R COMPANY FOR POWER SERVICE (12) T h e Illinois Iowa Power Company has served notice that it will terminate its power service agreement with the University of Illinois, effective March I, 1938. This agreement provides for the delivery of electrical energy to the University's Power Plant under certain conditions and was entered into by the Board of Trustees with the Illinois Power and Light Corporation on July 1, 1934. T h e contract provides that it may be terminated by either party on ninety days' notice. T h e Company has offered the University a new contract and schedule of rates which is considerably higher. For example, during 1936-19.37 the total annual expenditure for power purchased from this Company was $11,370.50, whereas under the new rate the total expense would be $20,266. This comparison is based only on the present transformer capacity and does not provide for the emergency service in case of breakdowns in the University's Power Plant. It is futile to consider doing without service from the Illinois Iowa Power Company, and consequently the following alternatives are open to the University: 1. T o enter into a new contract with the Illinois Iowa Power Company either ( a ) for existing transformer capacity (1,000 K. V. A . ) , or (b) for increased capacity to provide also for emergencies as well as anticipated expansion. 2. T h e purchase and installation of additional generating equipment for the University Power Plant. 3. A combination of (1) and (2) above. T h e Physical Plant Department makes the following recommendations: 1. Without a detailed study of this problem or that of the entire power plant and a program for the future, any recommendation now is little better than a guess. It is our opinion, however, that a combination of both a standby contract with the Illinois Iowa Power Company for emergencies, and the installation of additional generating equipment to take care of the normal demand, would be the most economical. 2. However, as the generating equipment would probably cost $40,000 to $50,000, in view of lack of funds the only alternative seems to be that of entering into a contract with the utility company at the lowest possible cost. If this additional expenditure is to be taken from the operation and maintenance budget, it will result in a reduction in building maintenance expenditures, which, in our opinion, are even now too low. 3. W e recommend further that the Board authorize filing an objection with the Illinois Commerce Commission as to the termination of the contract until such time as it is possible for the University to obtain additional appropriations (i.e., until the end of the biennium). 4. As soon as possible, funds should be appropriated for a power plant study to determine the future expansion of both steam and electrical generating equipment. O n m o t i o n of M r . C l e a r y , t h i s m a t t e r w a s r e f e r r e d t o t h e C o m mittee on Buildings a n d G r o u n d s for investigation a n d report. SANITARY S E W E R IN URBANA (13) T h e City Engineer of Urbana has inquired if the University will assume one-half of the cost of the construction of a twelve-inch sanitary sewer from Nevada Street to Green Street, intercepting all laterals in the area bounded by Mathews Avenue, Illinois Street, Lincoln Avenue, and Nevada Street. T h e estimated cost of this project is $5,000. T h e new sewer will connect with the Residence Halls on Nevada Street and can be extended to serve other buildings to the south if the grade is raised.