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Sponsored by: Oates <br /> CITY OF SEWARD, ALASKA <br /> RESOLUTION 2010 -053 <br /> A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, <br /> ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A <br /> SETTLEMENT AGREEMENT WITH CHUGACH ELECTRIC <br /> ASSOCIATION <br /> WHEREAS, in June, 2009, Chugach Electric Association, Inc. ( "Chugach "), the City's <br /> wholesale electric provider, filed with the Regulatory Commission of Alaska ( "RCA ") a request for <br /> approval of an increase in the base electric rates charged to its customers; and <br /> WHEREAS, Chugach requested a 9.3 percent increase in the revenue requirement for sales <br /> to the City, the effect of which would be an increase of $118,332 over the 2008 revenue received <br /> from base rates, representing a 2.4% increase in the City's overall cost of purchased power; and <br /> WHEREAS, the City intervened in the RCA docket considering Chugach's request, as did <br /> Homer Electric Association ( "HEA ") and Matanuska Electric Association ( "MEA "); the Attorney <br /> General of the State of Alaska is also participating in the RCA proceeding; and <br /> WHEREAS, the RCA granted Chugach's request to increase base rates on an interim and <br /> 41.. refundable basis for bills rendered after October 9, 2009; and <br /> WHEREAS, on May 14, 2010, HEA entered into a settlement agreement with Chugach; and <br /> WHEREAS, given the benefits of the concessions negotiated between Chugach and HEA <br /> and the costs and risks to the City of proceeding to a hearing before the RCA on Chugach's rate <br /> increase, it is in the City's best interest to agree to a settlement with Chugach under the terms set <br /> forth in the settlement agreement between Chugach and HEA; and <br /> WHEREAS, on May 18, 2010, the City Manager signed a settlement agreement with <br /> Chugach, attached hereto, wherein Chugach and the City agreed to resolve the issues between them <br /> in accordance with the terms and conditions of the Chugach/HEA settlement agreement as if the <br /> City were a party to that agreement and which provided that the rates for wholesale power paid by <br /> the City will be based on a revenue requirement for serving the City that is calculated assuming the <br /> adjustments and terms set forth in the Chugach/HEA settlement agreement; and <br /> WHEREAS, the settlement agreement between Chugach and the City is expressly subject to <br /> ratification and approval by the Seward City Council and the Regulatory Commission of Alaska. <br /> NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY <br /> OF SEWARD, ALASKA that: <br />