HomeMy WebLinkAboutRes2018-037Sponsored by: Hunt
CITY OF SEWARD, ALASKA
RESOLUTION 2018-037
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, SUPPORTING THE TRANSCO CONCEPT AND AUTHORIZING
THE CITY MANAGER TO ENTER INTO NEGOTIATIONS WITH OTHER
RAILBELT UTILITIES AND AMERICAN TRANSMISSION COMPANY IN
THE FORMATION OF SUCH AN ORGANIZATION
WHEREAS, the City of Seward Electric Utility, along with all the other Railbelt utilities,
has conducted extensive analysis and study concerning the costs and benefits to Railbelt members of
forming a Transco to operate, maintain and, as necessary, improve the Railbelt's transmission
infrastructure; and
WHEREAS, the City of Seward, Matanuska Electric Association (MEA), Homer Electric
Association (HEA), Chugach Electric Association (Chugach), City of Anchorage Municipal Light
and Power (ML&P), Golden Valley Electric Association (GVEA) and American Transmission
Company Development Incorporated (ATC) are developing cooperative approaches for sharing the
costs, capital, and operational responsibilities of the Transco; and
WHEREAS, final resolution of the Transco business model will require negotiations among
the parties to resolve operational roles and responsibilities, the equitable short-term and long-term
allocation of transmission revenue requirements, and capital obligations; and
WHEREAS, incorporation of the Transco will require a Certificate of Public Convenience
and Necessity (CPCN) and will be regulated by the Regulatory Commission of Alaska (RCA).
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. The City Manager is authorized to negotiate with the Railbelt Utilities and
American Transmission Company Development Incorporated (ATC) the initial and long-term
allocation of transmission costs, operational responsibilities and capital obligations in a manner
equitable and favorable to the interests of City of Seward and its members; and
Section 2. An additional resolution shall be brought to council for final approval prior to any
transfer of utility assets, and
Section 3. The Seward City Council authorizes filing by the City Manager, in partnership
with ATC and interested Railbelt Utilities, an application for a Transco Certificate of Public
Convenience and Necessity (CPCN) with the Regulatory Commission of Alaska (RCA); and
Section 4. This resolution shall take effect immediately upon its adoption.
CITY OF SEWARD, ALASKA
RESOLUTION 2018-037
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 9fl, day
of April, 2018.
THE CITY OF SEWARD, ALASKA
c
jairianna Keil, Vie Mayor
AYES:
Casagranda, McClure, Slater, Hom, Towsley, Keil
NOES:
None
ABSENT:
Squires
ABSTAIN:
None
ATTEST:
Brenda J. Ballott; MMC
City Clerk
(City Sea OF OF SEyV�,•p,�.
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SEAL r
.�yglF OF A�PS•�'e
1
1
Meetin 0 - # 19, 2018 1 g Date Api 1
To : City Coun-c"111
Through: Jim Hunt, City Manager
From-, John, Foutz, Electric Utility Manager
Agenda'ltein: Resolution of the City Cojunci I of the City of'Seward, Alaska, suppoilling, the
Transco Concept and authorizing the City Majia,gertol enter into negotiatioi�ns with
-npa�ny tn, the for�t adon. of' other Rai, lbel t', Utl, 11 ities �a d Ameri.ican Transniisston luo'i
0
such an organization
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INTENT.
This residlution authorizes the City Mannager to negotiate matters, of cost allocation anal g, overnance
necessary to the filin,g of a, Certif"on icate of PublIc Cvenience and Necessity, (C�PCN) to f6ri-n, a
Rallbelt Transco,.
CONSISTENCY CHECKLIST: Yes No, N/A
Comprehensive Plan (docutnent sout-ce here).-
2030 Stratepc Plan, 3.7'., IA —"Expand, customer base within the Seward
Electric'utifity, area as anwans to reduce energy costs, and it-nprove
I . services." The Transco will result to the to al cost allocation of x
Se aril's transm,ts,sion setwtces through the f-,"orniation of a regilona,l
Transmission-on1y electric utility.
St, rateg� , 1c Plan, (docun n source here).. 19919 Strategic Plan, Page 7,
2. "'Reduce Energy Costs."' Tran,sco formation will, facilitate access, to, x
I ,)ow1etr in the Railbelt.
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FISCAL NOTE.
The costs of negotlating to form a Transco wi H pn*man m iy involve staff time and some attorney time
for reviemi, which are expected to be paid within the current budget. Any final decisions Will requu*e
ftirtha action by the City Council.
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Approved by Finance Department: y4az.-�) I . . .......
U
ATTORNEY REVIEW: Yes No Not Applicable
RECOMMENDATION: The City of Seward support the formation of a Transco to help the
0 #.
,electric ratepayers of the Seward Utility by collectively working together with other Railb;elt Utiliti 0 es
and ATC.
Resolution 2018-037
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