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CITY OF SEWARD, ALASKA <br /> RESOLUTION 2009 -133 <br /> WHEREAS, AEA has completed the Alaska Railbelt Electrical Grid Authority (REGA) <br /> study (September 2008) the identified economic benefits of joint utility operations, but <br /> acknowledged the need for a transition period due to complexities of existing utility ownership and <br /> contractual arrangements; and therefore the following guidelines are suggested to allow for a <br /> successful transition to GRETC: <br /> • Existing utility generation, transmission, and fuel assets may be cooperatively integrated into <br /> GRETC operation based upon a range of options (sale, lease, or other beneficial operating <br /> agreements) at the option of the utilities owning such assets, <br /> • Utilities may participate through sales agreements with GRETC for desired services, <br /> • Existing power sales agreements will not change except under terms mutually acceptable to <br /> all parties, <br /> • During transition to GRETC, operation of the interconnected system may be governed by a <br /> single set of interconnection guidelines that will be jointly established by GRETC and the <br /> utilities, <br /> • Power sales arrangements and ancillary services can be made available to participating <br /> utilities that need services which cannot be provided by GRETC initially and these services <br /> can be available through bilateral contract arrangements; and <br /> WHEREAS, The Railbelt utilities have energy service needs that have not historically been <br /> undertaken by all utilities and GRETC can provide these services on a bundled or unbundled basis <br /> for the benefit of all. These services can include: <br /> • Planning reserves <br /> • Operating reserves <br /> • Base load power <br /> • Power dispatch <br /> • Wind integration <br /> • Acquisition of Independent Power Producer (IPP) Renewable resource projects <br /> (reduces coordination from six utilities to one) <br /> • G &T project management <br /> • Fuel supply aggregation, acquisition, storage and scheduling <br /> • Grant application processing and management <br /> • Other services as deemed appropriate by the GRETC board of directors; and <br /> WHEREAS, GRETC will offer services based on uniform rates for like services and <br /> utilities will pay for services they receive under standard tariffs or contract arrangements; and <br /> WHEREAS, GRETC will be regulated through the GRETC board of directors and under a <br /> state regulatory regime that will allow the best value for Railbelt customers; and <br />