HomeMy WebLinkAboutRes1991-095
.
.
.
Sponsored by: Schaefermever
CITY OF SEWARD, ALASKA
RESOLUTION NO. 91-095
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, APPROVING A NET BILLING
AGREEMENT WITH CHUGACH ELECTRIC ASSOCIATION
WHEREAS, the city of Seward is a signatory of the Bradley Lake
Hydroelectric Power Agreement and owns a one percent (1%) share of
the electrical power generated by Bradley Lake Hydroelectric Dam;
and
WHEREAS, the city of Seward is obligated to pay a one percent
(1%) share of the amount the railbelt utilities are obligated to
pay to the Alaska Energy Authority (AEA) for their share of the
construction cost of the Bradley Lake Dam; and
WHEREAS, the city of Seward has an existing wholesale
agreement with Chugach Electric Association (CEA) and currently
purchases all of its electricity from CEA under that agreement; and
WHEREAS, it would be difficult and costly for the city of
Seward to independently manage its one percent (1%) share of
Bradley Lake power; and
WHEREAS, under terms of a proposed Net Billing Agreement
between the city of Seward and CEA, CEA will manage the city's
share of the Bradley Lake power at no additional cost to the city,
except that the wholesale rate will be increased to reflect the
APUC approved wholesale rate reflecting the cost of commingling
Bradley Lake power with CEA generated power;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The City Manager is hereby authorized to execute
a Net Billing Agreement with Chugach Electric Association as
outlined above. A copy of the agreement is attached and incorpo-
rated herein by reference.
Section 2. This agreement shall take effect upon approval of
the Board of Directors of the Chugach Electric Association and
approval of this resolution by the Seward City Council.
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 12th day of August, 1991.
-1-
.
CITY OF SEWARD, ALASKA
RESOLUTION NO. 91-095
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Burgess,
Simutis
None
Dunham
None
Hilton,
.
(City Seal)
THE CITY OF SEWARD, ALASKA
QC~Ah'.cY'Ajl~
David L. Hilton, Mayor
Krasnansky,
Meehan,
Sieminski and
APPROVED AS TO FORM:
Perkins Coie, Attorneys for the
city of Seward, Alaska
7~ AI Unc-
Fred B. Arvidson
City Attorney
APPROVED AS TO FORM:
Bailey & Mason, Attorneys for the city of
Seward, Alaska
/
...~ (
.;r uli~ Mason
City Attorney
t
M----u,...... .
-2-
.
.
.
SEWARD NET BILLING AGREEMENT
Dated June 7, 1991
1.
PARTIES
The parties to this Agreement are chugach Electric
Association, Inc. (Chugach), an Alaska nonprofit electric
cooperative meJDbership organization having its offices in
Anchorage, Alaska, and the City of Seward (Seward), an Alaska
Municipal corporation.
2. ~
a) This Agreement shall become effective when approved by
(a) the Rural Electrification Administration of the
united states Department of Agriculture and (b) the
Alaska Public utilities commission, if chugach, upon
inquiry, determines that such approvals are required or
if no such approval is necessary, on the last date of
execution.
b)
This Agreement shall remain in effect so long as chugach
provides power to Seward under the Wholesale Power
Agreement between Chugach and Seward signed on August 27,
1984 and september 27, 1984 by the respective
representatives of the parties, as amended (hereinafter
"1984 Wholesale Power Agreement") or under any successor
agreement under which Chugach provides power to Seward.
3. AGREEMENT
a) Power from Seward I s share of the Bradlev Lake
Hvdroelectric Proiect. So long as this Agreement
continues to apply, Chugach shall be entitled to schedule
the generation of and to receive from Seward any power
which is produced by the Bradley Lake Hydroelectric
Project and which Seward is entitled to receive under the
Bradley Lake Power Sales Agreement and related agreements
governing the disposition of power from the Bradley Lake
Hydroelectric Project.
b) Treatment of Bradlev Lake Dower for DUrDOSeS of Dower
SUDDlv and rate makinq. For purposes of supplying and
making rates for power sold to Seward, chugach will be
entitled to co-mingle any power chugach receives from
Seward under section 3 (a) of this Agreement with all
other electric power available to chugach.
c) Reimbursement of costs throuah net billinq. Seward shall
be obligated to pay the costs of power it has committed
chugach/Seward Net Billing Agreement 1991
Page 1
.
.
.
to purchase from the Bradley Lake Hydroelectric Project
(as stated in the Bradley Lake Hydroelectric project
Power Sales Agreement) in the same manner as if this
Agreement did not exist, and without this Agreement being
treated as an assignment of Seward's share of the Bradley
Lake Project to Chugach. However, Chugach will reimburse
Seward for any costs actually incurred by Seward pursuant
to the Bradley Lake Hydroelectric Project Power Sales
Agreement by crediting to Seward's account with Chugach
those amounts paid by Seward under the Bradley Lake
Hydroelectric project Sales Agreement and billing Seward
for the net amounts owed to Chugach. The effect of such
billing credits shall be to reduce the net amounts that
Seward is otherwise obligated to pay Chugach for power
purchased from Chugach under the 1984 Wholesale Power
Agreement.
4.
RELATIONSHIP TO OTHER AGREEMENTS
This Agreement is in the nature of an ancillary agreement to
the existing 1984 Wholesale Power Agreement, as amended, the
Bradley Lake Hydroelectric Project Power Sales Agreement and
the Bradley Lake Hydroelectric Project Services Agreement.
This Agreement is intended to operate in conjunction with
these Agreements and does not in any way alter the parties'
obligations under these Agreements.
IN WITNESS WHEREOF, the parties have caused this Agreement to
be executed by their authorized representatives on this date
first set forth above.
CHUGACH ELECTRIC ASSOCIATION, INC.
THE CITY OF SEWARD
By
By
As
As
Date
Date
netblll.3
APPROVED AS TO FORM:
.~
Chugach/Seward Net Billing Agreement 1991
Page 2