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CITY OF NORTH OUISTED RESOLUTION N0. 78-/W BY : A RESOLUTION OBJECTING TO THE CLEVELAND ELECTRIC ILLUMINATING COME'ANY'S REQLTEST TO THE P.U.C.O FOR A RATE INCREASE, AND DECLARING AN a9ERGENCY. WHEREAS, the City of North Olmsted, Ohio has been noti_fied by letter dated March 31, 1978, from Cleveland Electric Illuminating Company that an application for a rate increase will be filed with P.U.C.O., and WHEREAS, C.E.I.'s net income for the year 1975 was reported as being $64.7 million dollars, for 1976, $81.6 million dollars, and for 1977, $111.7 million dollars, and INHEREAS, a recent publication has revealed that Congress has allowed all utilities to use the investment tax credit to reduce their tax liability by up to 100% for the years 1975 and 1976, largely to offset the inflationary effects of the Arab oil crisis on the utility industry, in nlace of the 50% reductions they had been previously granted, and, as a result, the Senior Tax Consultant for C.E.I. has stated that C.E.I. was applying for a$6.9 million dollar refund for federal income taxes paid in 1974, 1975, and 1976, and this refund would mean that C.E.I. will have paid no federal income taxes in 1975 on their net income of $64.7 million dollars and in 1976 on their net income of $81.6 million dollars, and 14-IEREAS, any rate increase granted would be unconscionable on a public that is helpless and nlaced in a non-comnetitive situation, as property owners are unable to use tax write-offs as enjoyed by C.E.I., namely accelerated denreciation and Investment Tax Credits which result in C.E.I. paying very little in taxes versus gross profits, and WHEREAS, further rate increases merely fan the fires of inflation, and are not justified against a utility-drained, bill-paying public; now, therefore: BE IT RESOLVED BY TI-E COUNCIL OF THE CIT'Y OF NORTH OLMSTED, OHIO: SECTION l: That the rayor and Council of the City of North Olmsted hereby urge the Pu?ic Utilities Commission of Ohio to reject a rate increase to Cleveland Electric Illim?inating Company, since it is unwarranted and not justified, based upon their recent income report. SECTION 2: That the Clerk of Council is hereby directed to £orwaxd copies of this- Resolution to Congressman Ronald Mottl, State Senators Anthony J. Celebxeeze, and Jerome Stano, and State Representatives Rocco Colonna and James Betts. She is also directed to send a copy of this Resolution to the P.U.C.O. SECTION 3: That this Resolution is hereby determined to be an emergency measure necessary for the imonediate preservation of the public peace, health, safety, and welfare of the City of North Olmsted, and for the further reason that same affects the day-to-day business of the Municinality. lVherefore, this P,esolution shall take effect and be in force immediately upon its passage; otherwise at the earliest period allowed by law.