HomeMy WebLinkAboutRES2025-073 Approving the 2025 Wholesale Power Contract with Chugach ElectricSponsored by: Sorensen
CITY OF SEWARD, ALASKA
RESOLUTION 2025-073
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, APPROVING THE 2025 WHOLESALE POWER CONTRACT
AND THE JOINT USE AND OPERATIONS & MAINTENANCE
AGREEMENT BETWEEN THE CITY OF SEWARD ELECTRIC SYSTEM
AND CHUGACH ELECTRIC ASSOCIATION, INC
WHEREAS, the City of Seward has purchased wholesale electric power from Chugach
Electric Association, Inc. ("Chugach") under various contracts since 1961; and
WHEREAS, the City and Chugach executed a short-term extension of the 2022 Wholesale
Power Contract through July 2025 pending completion of a long-term successor agreement; and
WHEREAS, City staff have successfully negotiated a new 2025 Wholesale Power
Contract that (a) ensures Seward's electric power requirements will be met on a full -requirements
basis; (b) excludes Seward from paying for Chugach's production reserves; (c) allows Seward the
option to supply its own gas or generation resources; (d) permits Seward to provide energy and
reserves to other Railbelt entities coordinated through Chugach dispatch; and (e) includes a fair
ratemaking structure that unbundles production and transmission rates in accordance with
Commission requirements and RTO protocols; and
WHEREAS, as part of this agreement, the City and Chugach have updated the Joint Use
and Operations & Maintenance Agreement governing the shared use and maintenance of
infrastructure, including poles, rights -of -way, and distribution underbuild, with each party bearing
its own maintenance costs and coordinating annual and emergency maintenance; and
WHEREAS, these agreements support the City's goals for reliable, cost-effective electric
service, while enabling flexibility for local generation and dispatch, including test runs, future
shore power operations, and service to other Railbelt utilities; and
WHEREAS, the agreements will be submitted to the Regulatory Commission of Alaska
for approval and will remain in effect for an initial three-year term with two automatic three-year
renewals unless terminated by either party with one year's notice.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The City Council hereby approves the 2025 Wholesale Power Contract and the
Agreement for Joint Use and Maintenance of Facilities between the City of Seward and Chugach
Electric Association, Inc., substantially in the form presented, and authorizes the City Manager to
execute the agreements and take such actions as may be necessary to implement them.
Section 2. Funding for services procured under these agreements is hereby authorized and shall be
paid from the Seward Electric System enterprise fund.
CITY OF SEWARD, ALASKA
RESOLUTION 2025-073
Page 2 of 2
Section 3. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 28rh
day of July 2025.
THE CITY OF SEWARD, ALASKA
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Sue McClure, Mayor
AYES: Barnwell, Finch, Crites, Osenga, McClure
NOES: None
ABSENT: Wells, Warner
ABSTAIN: None
ATTEST:
Kris Peck
City Clerk
(City Seal) .�:� r sEty' •.�
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