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HomeMy WebLinkAboutRes1991-016 . . . Sponsored by: Schaefermever CITY OF SEWARD, ALASKA RESOLUTION NO. 91-016 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, URGING STATE FUNDING FOR CONSTRUCTION OF ELECTRICAL INTERTIE SYSTEMS WHEREAS, the Interties Reserve Account was established with $100 million in unexpended funds from the Railbelt Energy Fund, which was originally established to be used exclusively to meet the energy needs of Alaskans in the Railbelt region: and WHEREAS, the Railbelt Energy Council endorsed use of a portion of the Railbelt Energy Fund to upgrade the Anchorage-Fairbanks electrical intertie system: and WHEREAS, Alaskans in other regions of the state continue to enjoy the benefits of state-financed energy projects and the Bush area continues to receive annual energy cost assistance through the Power Cost Equalization program: and WHEREAS, the City of Seward has received a grant of $9.5 million dollars from the fund to construct a new transmission line from Lawing to Seward: and WHEREAS, the continued development and expansion of industries within the railbelt are contingent upon reliable, reasonably priced electrical power: and WHEREAS, a study by the North American Reliability Council has determined that the existing Railbelt intertie transmission system is below accepted industry reliability standards in the Lower 48 states: and WHEREAS, utility sponsored studies show that two new sections of 138 kilovolt intertie line would have positive benefit-cost ratios and would yield many millions of dollars in benefits: and WHEREAS, because of limited existing intertie capacity, the full generation benefits of the Bradley Lake Hydro Project would not be realized without intertie upgrades: and WHEREAS, a new electrical transmission line between Healy and Fairbanks will enable the Usibelli Coal Company's Healy Coat Project to deliver its full output to the Fairbanks electrical load center: and -1- . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 91-016 WHEREAS, the transfer of economical energy between Southcen- tral generation sources will be greatly enhanced with a new 138 kilovolt Kenai-Anchorage southern intertie: and WHEREAS, transmission system reliability and increased control over major power outages will be much improved with the addition of a 138 kilovolt southern intertie: WHEREAS, electric utilities serving the Railbelt have pledged to pay interties construction costs above $125 million and make payments to the state beyond the term of debt service throughout the useful life of the lines: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: section 1. The City of Seward urges the Legislature to make an appropriation of $125 million to the Alaska Energy Authority from the Railbelt Interties Reserve Account and other funds for construction of a new 138 kilovolt line between Healy and Fairbanks and the addition of voltage compensation on the existing Anchorage- Fairbanks transmission system, and for construction of a new 138 kilovolt line between Soldotna and Anchorage. Section 2. The Governor is urged to support this legislative appropriation in its entirety. Section 3. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 11th day of February, 1991. THE CITY OF SEWARD, ALASKA ~~ William C. Noll, Mayor AYES: NOES: ABSENT: ABSTAIN: Hilton, Krasnansky, Meehan, Noll and Sieminski None Burgess and Dunham None -2- . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 91-016 ATTEST: y~~ ~.~~ Patricia J. Jones Acting City Clerk (City Seal) -3- APPROVED AS TO FORM: Perkins Coie, Attorneys for the City of Seward, Alaska -~ IV ~1-/- Fred B. Arvidson city Attorney