HomeMy WebLinkAboutresolution.council.098-08RESOLUTION ~'~~
WHEREAS, the City of Aspen adopted Ordinance 11, Series of 1984 on 6/25/1984, which
authorized the execution of the Service Schedule M Total Power Requirements Power Purohase
Agreement (hereinafter referred to as "SSM' with the Municipal Energy Agency of Nebraska
(hereinafter referred to as "MHAN'~; and,
WHEREAS, City has received notice that on May 15, 2008, the MEAN Board of Directors
approved entering into a Purchase and Sale Agreencerrt with Black Hills Wyoming, Tnc. to purehese
23.5% (approximately 20 MW) ownership interest in Wygen I, which is acoal-Erred, steam electric
generating unit with a net generating capability of approximately 85 MW; and,
WHEREAS, City has received notice that on November 15, 2007, the MEAN Board of Directors
approved entering into an agreement with the Heartland Consumers Power District to purchase 19.55%
(approximately 10 MW) ofwind-generated rnergy from the Wessington Springs Wind Project; and,
WHBREAS, City has received notice that on August 16, 2007, the MEAN Board of Directors
approved entering into an agreement with the Waverly Light & Power, a municipal utility of the City of
Waverly, Iowa, for the partial assignment to MEAN of Waverly's interest currently equal to 0.4%
(approximately 3 MW) of the energy generating capability and energy associated therewith, of Council
Bluffs Energy Center Unit 4 (now known as Walter Scott Hnergy Center Unit 4); and,
WHEREAS, City has received notice that on August 16, 2007, the MEAN Board of Directors
approved entering into an agreement with the Waverly Light & Power, a municipal utility of the City of
Waverly, Iowa, for the partial assignment to MBAN of Waverly's interest currently equal to 1.1%
(approximately 7 MW) of the energy generating capability and energy associated therewith, of the Louisa
Generating Station; and,
WHEREAS, each of the power suppiy resources described in the four preceding recitals
constitutes or has been designated by the MEAN Board of Directors as a "Project" within the meaning of
SSM (such power supply resources are hereinafter referred to collectively as the "Projects"); and,
WHEREAS, SSM has been in effect since the date of execution and City continues to be a Total
Requirements Purchaser under SSM; and,
WHEREAS, City has received a Notice to Service Schedule M Participants to amend Exhibit D
to SSM dated August 29, 2008, pursuant to Section 3.01(c) of SSM, a copy of which is attached; and,
WHEREAS, City recognizes its right, pursuant to Section 3.01(c) of SSM, to advise MEAN
within sixty (60) days of its receipt of the Notice to Service Schedule M Participants that it does not want
to participate hr each of the Projects, as described in the Notice, and, therefore, become a Contract
Purohaser; and,
WHEREAS, City determines it is in the best interest of the City and its ratepayers to decline
exercising this right, consrnt to participation in each of the Projects, and amend Bxhibit D of SMM, and,
therefore, remain a Total Requirements Purchaser.
NOW, THEREFORE, BE IT RESOLVED that:
1. City finds and declares that it is in the public interest of the City and its ratepayers that Ciry
remain a Total Requirements Purchaser under SSM and consent to the amendment of Exhibit
D to SSM by adding each of the following Projects as an additional Project for all purposes of
SSM:
a. 23.5% undivided o~mership interest in Wygen I (approximately 20 MW)
b. 19.55%participation purchase in the Wessington Springs Wind Project (approximately
10 MW)
a. Supplemental Agreement for Partial Assignment of Ownership Interest in Council Bluffs
Energy Center Unit 4, dated August 7, 2007, with the Waverly Light & Power, a
municipal utility of the City of Waverly, Iowa, for the partial assignment to MEAN of
Waverly's interest currently equal to 0.4% (approximately 3 MW) of the energy
generating capability and energy associated therewith, of Council Bluffs Energy Center
Unit 4 (now (mown as Walter Scott Energy Center Unit 4), until termination of
Waverly's Service Schedule M Agreement with MEAN
d. Supplemartal Agreement for Partial Assignment of Ownership lntcrest in Louisa
Generating Station, dated August 7, 2007, with the Waverly Light & Power, a municipal
utility of the City of Waverly, Iowa, for the partial assignment to MEAN of Waverly's
interest currently equal to 1.1% (approxnnately 7 MW) of the eoergy generating
capability and energy associated therewith, of the Louisa Generating Station, until
termination of Waverly's Service Schedule M Agreement with MEAN
2. It is hereby ordered and directed that the City of Aspen, acting through its Mayor end City
Clerk, consent to amend Exhibit D to SSM, a copy of Exhibit D being attached hereto end
made a part hereof.
3. The City of Aspen does hereby reaffirm each of the objectives, terms and conditions set forth
in SSM, as amended.
4. The City of Aspen does hereby acknowledge and agree that: (a) MEAN's acquisition of a
23.5% undivided ownership interest in Wygen I constitutes the acquisition of
nongovemmartel output property within the meaning of Section 141(d) of the Internal
Revenue Code; and (b) in order to enable MEAN to establish and maintain the tax exempt
status of interest on the bonds it will issue to finance the acquisition of its interest in Wygen I,
City will use ell of the electricity delivered to it by MBAN from Wygen I to serve customers
located in service areas it has served for at least l0 years and such other areas as are approved
by MEAN pursuant to generally~appl~icable and uniformly applied rates and charges.
PASSED AND APPROVED this 4t7'~'~ay of_ ~~2008.
Attes //~'v - "
City Clerk
(SBAL)
By
ayor, Ci of Aspen