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CCITY OF SEWARD, ALASKA
RESOLUTION 2012 -007
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO
AMENDMENT NO. 2 TO THE SALE AND PURCHASE AGREEMENT
WITH CHUGACH ELECTRIC ASSOCIATION TO FACILITATE
ALLOWING THE CITY TO PURCHASE ELECTRIC OUTPUT OF
CERTAIN SMALL RENEWABLE POWER PRODUCTION FACILITIES
WHEREAS, Chugach Electric Association (CEA) and the City of Seward entered into a
2006 Agreement Sale and Purchase of Electric Power and Energy ( "Agreement "); and
WHEREAS, the parties wish to amend the Agreement to address small, renewable power
production facilities who may sell power to the City; and
WHEREAS, the Amendment No. 2 addresses small power projects that have a nameplate
capacity of greater than 25 kW, but not greater than an aggregate of 350 kW; and
WHEREAS, the Amendment No. 2 also recognizes the City's right to purchase electric
power from small on -site retail customers of the City whose facilities have a nameplate capacity of
25kW or less, provided that the total does not exceed 1.5% of the City's average retail demand; and
WHEREAS, interconnection of power generation systems of third parties may facilitate
allowing the City to offer financial reimbursement from eligible general sources to its retail
customers; and
WHEREAS, the effectiveness of Amendment No. 2 is subject to approval by the Regulatory
Commission of Alaska (RCA); and
WHEREAS, CEA will request approval from RCA.
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 enter into an Amendment No. 2 to the
2006 Agreement with Chugach Electric Association, Inc., in substantially the form presented at this
meeting.
Section 2. This resolution shall take effect immediately upon its adoption.
CITY OF SEWARD, ALASKA
RESOLUTION 2012 -007
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 23
day of January, 2012.
THE CITY OF SEWARD, ALASKA
David Seaward, Mayo
AYES: Valdatta, Bardarson, Keil, Shafer, Casagranda, Terry, Seaward
NOES: None
ABSENT: None
ABSTAIN: None
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ATTEST:
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.Khanna Kinney, CMC
ity Clerk
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Council Agenda Statement
Meeting Date: January 23, 2012 �oF sF
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Through: Jim Hunt, City Manager 1
From: John Foutz, Utility Manager 44.4 wP
Agenda Item: Authorizing the City Manager to enter into
Amendment No. 2 with Chugach Electric
Association, Inc. regarding small renewable energy production facilities
BACKGROUND & JUSTIFICATION:
Chugach Electric Association (CEA) and the City of Seward are parties to the 2006 Agreement for
the Sale and Purchase of Electric Power and Energy. Both parties would like to amend the
agreement to facilitate allowing the City to purchase the electric output of certain small, renewable
non - utility power production facilities. The eligible facilities would have a nameplate capacity of
greater than 25 kW, but not greater than an aggregate of 350 kW, located within Seward's electric
service area.
Amendment No. 2 addresses the methodology for allowing the City to purchase power from certain
eligible facilities. The amendment also recognizes that the City may purchase power from retail
customers of the City who operate on -site facilities with a nameplate capacity of 25 kW or less,
provided that the total nameplate capacity of all Seward net metered generation facilities is less than
1.5 percent of the City's average retail demand.
Effectiveness of the Amendment No. 2 is subject to RCA approval. CEA will submit the
amendment to RCA for its approval.
INTENT:
The passage of Amendment no. 2 to the power sales agreement with Chugach Electric Association,
Inc. addressing renewable power generation.
CONSISTENCY CHECKLIST:
Where applicable, this resolution is consistent with the Seward City Code, Charter, Comprehensive
Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures.
Other:
ATTORNEY REVIEW: Yes X No
FISCAL NOTE: The impact of this action is unknown and will depend on the amount of energy
produced, if any, which would be resold to the city.
Approved by Finance Department:
RECOMMENDATION:
Council adopt Resolution 2012- 001 authorizing the City Manager to enter into Amendment No. 2
to the 2006 Agreement with Chugach Electric Association.
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