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HomeMy WebLinkAbout01-73 -4? . . . RESOLUTION NO. .. /..., 'K3 A RESOLUTION authorizing the execution of a revised net billing agreement relating to Washington Public ~ower Supply System Nuclear Project No.3 with the United State 'of America, Department of the Interior, acting by and through the Bonneville Power Administrator, and the Washington Public Power Supply System, and delivery of said agreement to those parties. The City of Port Angeles, Washington (hereinafter called the "City") is authorized by law to purchase electric power, to provide for the distribution of electric power to its customers and to enter into contracts to provide for sources of additional power supply to meet the prospective power needs of the City and its electric customers. The United States of America, Department of the Interior acting by and through the Bonneville power Administrator (here- inafter called "Bonneville") and the utilities of the Pacific Northwest have developed the Ten Year Hydro Thermal Power Program pursuant to which Bonneville will acquire by net billing from statutory preference customers in the Northwest generating capability from non-federally financed thermal generating plants , to meet the power requirements of Bonneville's preference and other customers in the region. Pursuant to said program, the City proposed to execute with the Washington Public Power Supply System (hereinafter called the "System") and with Bonneville a contract designated "WPPSS Nuclear Project No. 3 Net Billing Agreement" in the form and content as set forth in the draft thereof on file with the City, Contract No. 14-03-39171,. dated November 27, 1972, with revision I of Exhibit A, under which the System sells to the City (called the "participant" in said agreement) a specified share of I .c:~ . . capability of the nuclear generating plant and associated facilities identified therein and Bonneville acquires such capability from the City. The System proposes to finance, construct, own and operate said generating plant and facilities associated there- with, such plants and facilities being referred to in the Net Billing Agreement as the "Washington Public Power Supply System Nuclear Project No.3" (hereinafter called the "Project"). In accordance with the Net Billing Agreement, the System proposes to adopt a "Bond Resolution" at a later date which provides, among other things, for the.'issuance of Bonds in series or otherwise, and is entitled: A RESOLUTION providing a plan and system for the acquisition and construction by Washington Public power Supply System of a utility system consisting of a nuclear generating plant and associated facilities to be known as the Wash- ington public Power Supply System Nuclear Pro- ject No. J; and providing for the issuance of revenue bonds for said purpose. A draft of such resolution dated November 29, 1972, is on file with the City. Prior to the adoption of the above Bond Resolution the System expects to adopt a Bond Reso~ution providing for the sale of short-term notes to finance the System's preliminary costs of acquiring and constructing the Project, which Bond Resolution will be similar to the note resolutions adopted by the System for preliminary financing of Washington Public Power Supply System Nuclear project No. 2 and will be consistent with the above Bond Resolution and the Net Billing Agreement. The Council of the City has reviewed the Net Billing Agreement and the Resolution above referred to and now finds that entering into the said Net Billing Agreement with the System and Bonneville is in the best interest of the City, that performance - 2 - - ... - . . of the Net Billing Agreement, among other things, will make addi- tional amount of low.,..cost power and energy available from Bonneville to meet the prospective powers needs of the City, to serve residents and customers o;f the City and the future. The City, the System and Bonneville are parties to an Exchange Agreement (hereinafter called Hanford Sxchange Agreement and designated as Contract No. 14-03-3917l, which provides for the sale by the System of a portion of ~roject Output from the System's Hanford Project to the City and the exchange of such Project Output with Bonneville .for firm electric power and energy to be made available from resources available to Bonneville. THEREFORE, IT IS RESOLVED: S'ection 1. The Mayor and Clerk of the City are hereby authorized and directed, on behalf of the City, to execute with Bonneville and the Washington ~ublic ~ower Supply System the Net Billing Agreement above referred to, substantially as set out in the draft thereof on file with the City, No. 14-03-39171, dated November 27, 1972, as revised, and to deliver copies thereof to the other parties to the agreement. Section 2. lei) The City agrees to the use and employ- ment of the existing power facilities,as defined in the Bond Resolution, by the system for the purposes and in the manner set forth in the Bond Resolution. (b) The City agrees that the electric power and energy to be produced by the project, including the electric power and energy to be produced by the existing power facilities, shall be disposed of to the parties in the quantities for the period and under the terms and conditions prescribed in the Net Billing Agreement and the project Exchange Agreements, both as defined in the Net Billing Agreement. .,.. 3 - ,,;f'': . . lel The execution and delivery of said Agreement No. 14-03-29171 does not affect, limit, modify, alter, release or discharge the Cityrs ri~hts and obligations under the Hanford Exchange Agreement and the City's rights and obligations under such Exchange Agreement are hereby reaffirmed. ADOPTED by the City Council of the City of Port Angeles this )0~4day of January, 1973. ...:. ~.... ,~ ........--.......,. ~ ,~~-r-.-.- "'~...._ ~p ..~- .... -- ~- ..... :.~ .~' - ~ ...... --.:. :- ....- ""';' ~..... -"I- -:....":"~ ~.... .'" ,..... Attes't: j"'~ ~ . '-"'"':' .~Vi4~ Mayor ~./i /J0~9/ City Cler Approved as to form: ?f4 c#~ C~ty Atto - 4 -