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Home My WebLink Aboutresolution.council.115-02 RESOLUTION I[ 5 WHEREAS, the City of Aspen adopted Ordinance 11, Series of 1954 on June 25, 1984, which authorized the execution of the Service Schedule M Total Power Requirements Purchase Agreement (hereinafter referred to as "SSM") with the Municipal Energy Agency of Nebraska (hereinafter referred to as "MEAN"); and, WHEREAS, City has received notice that on July 18, 2002, the MEAN Board of Directors unanimously approved entering into a Joint Ownership Agreement with MidAmerican Energy Company and 13 public power utilities to purchase 6.67% (approximately 50 MW) ownership interest from Council Bluffs Energy Center Unit 4 (herein after referred to as "Project"), which is a new coal-fired, steam electric generating unit with a net generating capability of approximately 750 MW; and, WHEREAS, this 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 October 23, 2002, 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 that it does not want to participate in the Project, as described in the Notice, and, therefore, become a Contract Purchaser; and, WHEREAS, City determines it is in the best interest of the City and its ratepayers to decline exercising this right, consent to participation in the Project, and amend Exhibit 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 City remain a Total Requirements Purchaser under SSM and consent to the amendment of Exhibit D to SSM by adding the purchase of a 6.67% undivided ownership interest in the Project as an additional project. 2. It is hereby ordered and directed that the City of Aspen, acting through its Mayor and City Clerk, consent to amend Exhibit D to SSM, a copy of Exhibit D being attached hereto and 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. PASSED AND APPROVED this ~day of ~ [21a~', 2002. BY:. s~p¢n ~ity~ierk )- ~/ ~ (SEAL) NOTICE TO SERVICE SCHEDULE M PARTICIPANTS NOTICE IS HEREBY GIVEN, that on July 18, 2002, the Board of Directors of the Municipal Energy Agency of Nebraska (MEAN) unanimously approved entering into a Joint Ownership Agreement with MidAmerican Energy Company, and 13 public power utilities, to purchase 6.67% (approximately 50 MW) undivided ownership interest from Council Bluffs Energy Center Unit 4, as described in paragraph (l) below. FURTHERMORE, pursuant to Section 3.01 (c) of the Service Schedule M contract of the Electrical Resources Pooling Agreement (ER.PA), as referenced in MEAN's Power Supply System Revenue Bond Resolution, adoPted March 16, 1983, WhiCh sta~es: If at any time MEAN. determines it necessary to commit to an additional Project, it will advise the City in writing of its intention to so commit, the nature of such Project, the estimated time such Project is scheduled for Commercial operation and the aggregate principal amount of Bonds, if any, estimated to be issued in connection therewith. Exhibit D hereto shall be amended to include such Project unless the City elects to become a Contract Purchaser as hereinafter provided. After such notification, the City will have sixty (60) days to advise MEAN by written notice that it has determined, by appropriate resolution, that it does not want to participate in such Project. Upon such notification, the City shall continue to be a Requirements Purchaser until the latest date such Project or any other Project which constitutes a Related Project for the City commences commercial operation, whereupon City shall become a Contractor Purchaser, and its obligation hereunder to purchase, and MEAN's obligation to supply, electric power and energy, shall thereafter be at a Contract Demand equal to the Firm Power Requirement for the City at the date such Project commences commercial operation. FURTHERMORE, the MEAN Board of Directors and Management Committee, upon recommendation of the Power Supply Committee, adopted Resolutions on July 18, 2002, which determined it necessary to commit to an additional Project, referred to as the CB 4 Project, as described below. THEREFORE, notice is hereby given to all Service Schedule M Participants as follows: 1. Nature of Project: Joint ownership in Council Bluffs Energy Center Unit 4 (hereinafter referred to as "Project"), which is a new coal-fired, steam electric generating unit with a net generating capability of approximately 750 MW (750,000 kW) to be built at the existing Council Bluffs Energy Center site in Pottawattamie County, Iowa. Project will include, but not be limited to, a new complete electric generating station, which will include a supercritical steam boiler, steam turbine generator, environmental emission control equipment, and related electrical interconnection equipment and transmission facilities. Page 1 I:LMEAFhCB 4\SSM Notification\Official Notice.doc Joint owners of the Project include: Municipal Energy Agency of Nebraska (6.67%), MidAmerican Energy Corp (60.02%), City of Lincoln, Nebraska (Lincoln Electric System) (13.33%), Central Iowa Power Cooperative (8.00%), Corn Belt Power Cooperative (5~33%), and the following cities located in Iowa: Cedar Falls (2.00%), Pella (1.33%), Spencer (1.07%), Eldridge (.53%), New Hampton (.53%), Montezuma (.40%), Waverly (.40%), Alta (.13%), Sumner (.13%), and West Bend (.13%). 2. Estimated Time Project is Scheduled for Commercial Operation: Construction of Project is scheduled to begin in early 2004, with an anticipated conmaercial operation date of June 2007. It is anticipated that the Project will be debt financed for a 30-year term. The expected useful life of the Project, with regular maintenance, replacement and renewals exceeds 40 years. 3. Estimated Principal Amount of Bonds: The estimated Project construction cost to MEAN is $76 million. It is MEAN's intention to fund the Project through issuing electric revenue bonds, with the aggregate principal amount not to exceed $100 million. Such principal amount shall include MEAN's share of the construction costs, capitalized interest during construction, and the bond issuance costs. 4. Exhibit D: Amend Exhibit D of the Service Schedule M contract to add Project. The City has sixty (60) days from receipt of this Notice to advise MEAN by written notice that it has determined, by appropriate resolution, that: A. The City intends to participate in this Project and the City consents to amending Exhibit D to include the Project. (See attached Resolution.) OR B. The City does not wish to participate in this Project and the City intends to become a Contract Purchaser, effective on the commercial operation date of the Project. DATED: October 23, 2002 Executive Director Municipal Energy Agency of Nebraska Page 2 I:LM EANSCB 4\SSM Notification\Offialal Notice.doc EXHIBIT D RELATED PROJECTS Dated: July 18, 2002 Not to exceed 1.70% of the output of Laramie River Station (approximately 28 MW) through Lincoln Electric System Not to exceed 10 MW of Hastings Energy Center #1 Up to 30 MW of electric generation facility consisting of wind turbines in Kimball County, Nebraska 6.67% joint ownership interest in Council Bluffs Energy Center Unit 4 (approximately 50 MW) Approved July 18, 2002 by MEAN Board of Directors Supersedes Exhibit D as approved May 16, 2002 Date Sent to Service Schedule M Participants October 23, 2002 Page 3 I:XMEAN~CB 4\SSM Notification\Official Notice.doc