HomeMy WebLinkAboutMinutes 05/13/1996UTILITY ADVISORY COMMITTEE
Port Angeles, Washington
May 13, 1996
Call to Order:
Chairman Michalczik called the meeting to order at 4:34 p.m.
Roll Call:
Members Present:
Members Absent:
Staff Present:
Public Present:
Orville Campbell, Larry Doyle, Joe Michalczik, and Bill Myers.
Gary Braun.
C. Knutson, B. Titus, C. Hagar, and S. McLain.
J. Nelson.
III. Approval of Minutes:
Bill Myers moved to approve the minutes of the April 8, 1996, meeting. Councilman Doyle
seconded the motion. Councilman Doyle stated that at its last meeting, the UAC had discussed the
sale of 1.5 million gallons of water and moved for denial. However, the Council had received more
information on the issue and voted for approval. The City received cash in advance of the sale, and
netted an acceptable profit. Councilman Doyle did not wish to amend the minutes, this was for UAC
information only. A vote was taken on the motion, which carried unanimously.
IV. Discussion Items:
A. Update on BPA Rate Case and Contract Negotiations
Light Director Titus distributed a BPA Negotiations Update and a Draft Amendatory Agreement #7.
He apologized to the Committee for not getting the information to them sooner; however, the
information was unavailable prior to last Thursday.
Draft Amendato~y Agreement #7 is a contract amendment which will more than likely allow up to
10% diversification. Other options under discussion are a new contract, staying with the existing
contract, or signing a 100% requirement amendment agreeing to take all of the City's power from
Bonneville for five years. The City is interested in Amendatory Agreement #7, and Director Titus
anticipated that the final agreement will be fairly similar to this amendatory agreement. The current
contract with the BPA expires in July 2001, and Bonneville's fiscal year ends September 30. The
negotiation process is being used to even out the time frame so the current contract will be extended
through September 2001. Director Titus went on to explain some of the changes the BPA is seeking
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Utility Advisory Committee
May 13, 1996
through Amendatory Agreement #7.
Director Titus stated that the WPAG utilities that are currently negotiating as a group with Bonneville
have several points of contention. One is that the BPA is unwilling to disclose how margins are being
calculated by individual product and services. Discussion followed regarding diversification of power
and calculations of margins.
Director Titus reviewed the other options available; however, he did not recommend them. After
further lengthy discussion, Director Titus informed the Committee that there would be two meetings
held in June regarding Power Supply Decision Making and Electric Utility Operations. He invited
anyone interested to attend these meetings to get a better understanding of the negotiation process
and the future of public utilities.
V. Late Items
None.
VI. Next Meeting:
The next meeting of the Utility Advisory Committee will be held on Monday, June 10, 1996, at 4:30
p.m.
VI[It Adjournment:
The meeting adjourned at 5:38 p.m.
(~ai(-nf~an'
Deputy City Clerk
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