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Home My WebLink AboutRES2025-091 RTO MembershipSponsored by: Sorensen CITY OF SEWARD, ALASKA RESOLUTION 2025-091 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING MEMBERSHIP IN THE RAILBELT TRANSMISSION ORGANIZATION AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL NECESSARY DOCUMENTS AND PAY ASSOCIATED FEES AS INVOICED WHEREAS, the State of Alaska has established the framework for the Railbelt transmission organization (RTO) to improve reliability, efficiency, and coordination of electric transmission across the Railbelt region; and WHEREAS, the Railbelt electric system provides power to approximately three -fourths of Alaska's population and includes multiple generation and transmission owners, making coordinated planning and operations essential; and WHEREAS, participation in the RTO will enable the City of Seward to have a seat at the table in decisions that impact regional transmission policy, reliability standards, and investment planning; and WHEREAS, the RTO is designed to provide more transparent and equitable access to transmission, ensuring that all participants, including Seward Electric, can benefit from fair transmission pricing and access; and WHEREAS, the creation of the RTO is expected to promote cost savings, reduce redundancy, and allow for better integration of renewable energy resources across the Railbelt; and WHEREAS, all costs for the RTO will be shared equally among the six Railbelt utilities, ensuring fairness and equal participation in the organization; and WHEREAS, membership in the RTO will help safeguard Seward's long-term electric reliability and resiliency, while ensuring compliance with evolving state and federal regulatory standards; and WHEREAS, the city council of the City of Seward recognizes the importance of regional collaboration and coordination in maintaining a reliable and affordable electric system for its residents and businesses. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: CITY OF SEWARD, ALASKA RESOLUTION 2025-091 Page 2 of 2 Section 1. The City Council hereby approves the City of Seward's membership in the Railbelt Transmission Organization (RTO) and authorizes the City Manager to execute all necessary membership agreements and related documents to effectuate participation. Section 2. The City Manager is authorized to pay RTO membership and participation fees as they are invoiced to the City. Payments shall be made from the Electric Enterprise Fund as budgeted, or from other funds as may be duly appropriated by the City Council. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 8th day of September 2025. THE CITY OF SEWARD, ALASKA Sue McClure, Mayor AYES: Osenga, Warner, Wells, Crites, Finch, McClure NOES: None ABSENT: Barnwell ABSTAIN: None ATTEST: Kris Peck City Clerk (City Seal) 1 1 1 City Council Agenda Statement Meeting Date: September 8, 2025 To: City Council Through: Kat Sorensen, City Manager From: Taylor Crocker, Electric Operations Supervisor Subject: Resolution 2025-091: Approving Membership in the Railbelt Transmission Organization and Authorizing the City Manager to Execute All Necessary Documents and Pay Associated Fees as Invoiced Background and justification: The State of Alaska has established a framework for a Railbelt Transmission Organization (RTO) to improve reliability, efficiency, and coordination across the Railbelt electric grid. The Railbelt system supplies roughly three-quarters of Alaska's population and includes multiple owners and operators of generation and transmission assets. Coordinated regional planning and operations are essential to maintain reliability, optimize system dispatch, and enable fair, transparent access to transmission. Membership in the RTO will give the City of Seward (Seward Electric) a formal voice in regional decisions that affect transmission policy, reliability standards, interconnection procedures, and long-term investment planning. The RTO structure is designed to standardize and improve transmission access and pricing so that all participants — including Seward — benefit from a transparent, equitable framework. This is expected to reduce redundant infrastructure and administrative costs, increase operational efficiency, and better integrate renewable resources, which can help manage long-term power supply costs and strengthen resiliency. Costs of the RTO are anticipated to be shared equally among the six Railbelt utilities, supporting fairness and equal participation. Authorizing membership now positions Seward to help shape RTO governance and rules as they are finalized, protects our community's interests in future transmission planning, and helps ensure Seward remains aligned with evolving state and federal reliability and market expectations. Not participating could reduce Seward's influence over regional policies that directly affect our transmission access, cost exposure, and future project interconnections. Joining the RTO provides a seat at the table, strengthens grid reliability and resiliency outcomes for Seward customers, and supports the City's commitment to collaboration and affordability. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Strategic Plan: Other: Total amount of funds listed in this legislation: $ This legislation (✓): Creates revenue in the amount of: Creates expenditure in amount of: Creates a savings in the amount of: Has no fiscal impact Funds are (✓): Budgeted Line item(s): Not budgeted Not applicable $ $ $ Affected Fund (✓): General Boat Harbor Motor Pool Available Fund Balance SMIC Parking Other Electric Water $ Wastewater Healthcare Note: amounts are unaudited Finance Director Signature: ,Stz, • Attorney Review Yes Attorney Signature: Not applicable Comments: Administration Recommendation Adopt Resolution Other: LETTER OF AGREEMENT: INTERIM COST SHARE ALLOCATION FOR RAILBELT TRANSMISSION ORGANIZATION COSTS The Parties, namely Alaska Energy Authority (AEA), Chugach Electric Association, Inc. (Chugach), Matanuska Electric Association, Inc. (MEA), Golden Valley Electric Association, Inc. (GVEA), Homer Electric Association, Inc. (HEA), and the City of Seward d/b/a Seward Electric System (SES), agree to share the following Railbelt Transmission Organization (RTO) costs: legal services from Stoel Rives LLP; expert consulting services from Munro Advisors, LLC; D&O insurance costs; dispute resolution costs; and other costs to operate the RTO as agreed upon by the Parties. The costs share shall be based on the following allocation: • Chugach: 16.666% of the total cost • MEA: 16.666% of the total cost • GVEA: 16.666% of the total cost • HEA: 16.666% of the total cost • AEA: 16.666% of the total cost • SES: 16.666% of the total cost This cost share allocation applies to costs incurred on or after July 1, 2024. The RTO, through AEA, shall bill the Parties with each invoice being payable 30 days from the date of such invoice. This agreed -upon allocation shall continue until such time as (a) the Parties have unanimously agreed to a replacement load -share and/or coincident peak based allocation methodology, or (b) the open access transmission tariff (OATT) filed with the Regulatory Commission of Alaska on or before July 1, 2025, is approved with all regulatory and judicial proceedings concluded. Alternative allocation methodologies not otherwise provided for in this section must be unanimously agreed to by the Parties. Upon execution of new service agreements between the following service providers and the RTO, the following previously executed cost share agreements shall be null and void: • Munro Advisors, LLC, for consulting services provided to the RTO through a contract with Chugach Electric Association, Inc. • Stoel Rives LLP for legal services provided to the RTO through a contract with Golden Valley Electric Association, Inc. [signatures on page 2 of 2 of this document] Acknowledged and Agreed: Matanuson, Inc. Golden Valley Electric Association, Inc. Tony zo Travis Million Homer Electric Brad Janorschke ciation, Inc. Seward 4' ric S stem Brian Hic Alaska Energy Authority Curtis Thayer _afL Z• 1./4 Chugach Electric Association, Inc. Arthur Miller