HomeMy WebLinkAboutAgenda Report - October 16, 1991 (62)MA
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CITY OF LO®I
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COUNCIL COMMUNICATION
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AGENDA TITLE: Northwest Resource Third Phase Agreement and the Energy Sale
Agreement between NCPA and the Bonneville Power Administration
MEETING DATE: October 16, 1991
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council approve the NORTHWEST RESOURCE
THIRD PHASE ANENT and the ENERGY SALE AGREEMENT
BETWEEN NCPA AND THE BONNEVILLE POWER ADMINISTRATION and
authorize proper execution by the City Manager and City
Clerk and delivery of documents.
BACKGROUND INFORMATION: The California -Oregon Transmission Project (COTP) will be
i n service early next year which w i l l open a transmission
corridor to the Pacific Northwest and its economically
pricea nyaroeiectric ana coal-tirea power ana energy.
Therefore, it is necessary to have purchase power contracts in place prior to
commercial operating date of the COTP to obtain immediate benefit.
NCPA has entered into a 20 -year power sale agreement with Washington Water Power
Company (WWP), a corporation of the State of Washington, to deliver firm capacity
and associated energy, as scheduled by NCPA, to be imported into California over the
California -Oregon Transmission Project. The power and energy w i I I be distri;;uted to
the participants i n the above-mentioned contract on the basis of percentage
participation' stated therein.
The purpose of the NORTHNEST RESOURCE THIRD PHASE "AREEMENT is to establish the
participation percentage of power purchased f= WWP which NCPA i s obligated to make
available to each participating NCPA member. WWP must transfer that power and
energy for export f= the Northwest through Bonneville. Three parties are required
to move power out of the Northwest - a BUYER (NCPA), a SELLER (WWP) and BONNEMLLE.
The purpose of the ENERGY SALE AGREEMENT BETWEEN NCPA AND THE BONNEMLLE POWER
ADMINISTRATION is to duly recognize Bonneville as the Pacific Northwest "Marketing
and Transfer" agency for all transfers of power out of the Northwest. Transfers of
power and energy from Canadian power agencies and northwest agencies a I I require
formal agreement and acceptance by Bonnevile. This agreement, authorized by
Bonneville, allows NCPA to transfer power and energy once i t (NCPA) has
authorization from its members.
APPROVED
THOMAS A. PETERSON
City Manager
CC-10.16/CO.COM cc -1
01
r
Northwest Resourco Third Phane
: Agreement and the Energy Sale
Agreement betwoom NCPA and the Bonneville Power Administration
October 16, 1991
Page Two
Approval of th@ above-mentioned agreements pursuant to the attached Resolution will
ensure proper mCution of the necessary documents to assure timely participation in
the benefits of the COTP upon commercial operation.
FUNDING: Not Applicable
Henry J. Rice
Electric Utility Director
cc: Manager, Rftte§ & Resources
CC-10.16/CO.COM
Ii
RESCLUIION NO. 91-191
A REgOLUIION OF THE LORI CITY COUNCIL,
AUHi0F2 LVCT Eg3aJ N OF ENERGY SALES AGREEMENT
BE IT HEREBY RESOLVED as follows:
The Energy Sales Agreement proposed among the United States of
America, acting by and through its Bonneville Power Administration, the
Northern California Power Agency, and the City of Lodi is hereby
approved and the City Manager and City Clerk are hereby authorized and
directed to execute the agreement on behalf of this party.
Dated: October 16, 1991
I hereby certify that Resolution Mo. 91-191 was passed and
adopted by the Lodi City Council in a regular meeting held October 16,
1991 by the following vote:
Ayes: Council Members - Pennino, Pinkerton, Sieglock, Snider,
and Hi nchman (Mayor}
Noes : Council Members - None
Absent: Council Meabers - None
Alice M. Reimche
City Clerk
91-191
RES9I191/TXTA.01V
N
RESOLUTION NO. 91-192
A RESOLURON OF THE LODI CITY COUNCIL
AUIHORIDNG EXR,UHON OF NORTHWEST ROSOLKE
THIRD PHASE AGREEMENT
BE IT HEREBY RESOLVED as follows:
The Northwest Resource Third Phase Agreement is hereby approved
and the City Manager and City Clerk are hereby authorized and directed
on behalf of this Participant to execute such agreement.
Dated: October 16, 1991
I hereby certify that Resolution Na 91-192 was passed and
adopted by the Lodi City Council in a regular meeting held October 16,
1991 by the following vote:
Ayes : Council Members - Pennino, Pinkerton, Sieglock, Snider,
and Hinchman (Mayor)
Noes : Council Members - None
Absent: Council Members - None
Alice M. Reimche
City Clerk
RES91192/TXTA.01V
CITY COUNCIL
DAVID M HINCHMAN. Maya
JAWS W. PINKERTON. Ir
Mayor Pro Tempore
P;ULLIP A. PENNING
)ACK A SIEGtOCK
JOHN R (Randy) SNIDER
October 4, 1991
CITY OF LODI
CITY HALL, 221 WEST PINE STREET
P.O. BOX 3006
LODI, CALIFORNIA 95241.1910
(209)334.5634
FAX (2091333-6795
Dennis W. DeCui r
McDONOUGH, HOLLAND & ALLEN
A Professional Corporation
Attorneys
555 Capitol Mall, Suite 950
Sacramento, &A 95814
Subject = Northwest Resource Third Phase Agreement; Washington
Water Power Company 20 -Year Power Sale Agreement;
Bonneville Power Administration Mitigation Agreement
Dear 1V4 DeCuir:
THOMAS A PETERSON
City Manager
ALICE M REIMCHE
City Clerk
BOB McNATT
Citv Attorney
I am counsel t3 the City of Lodi (Participant). I have been requested to
furnish to you ny opinion regarding the authority of the Participant to
execute and implement the Northwest Resource Third Phase Agreement, which
supports the 20 -Year Power Sale Agreement, September 1991, between the
Washington Water Power Company (WWP) and the Northern California Power
Agency (NCPA), and the Energy Sales Agreement (Mitigation Agreement),
between the United States of America acting by and through the Bonneville
Power Administration, and NCPA and the Participants.
I have reviewed California law, and the local laws, ordinances, and
regulations of the Participant.
Based upon rry review, it is rry opinion that the Participant has duly and
regularly authorized, and is fully empowered to, execute and deliver the
Northwest Resource Third Phase Agreement and the Mitigation Agreement,
which are enforceable against the Participant in accordance with their
terms, subject to the laws of bankruptcy, moratoria, and creditors rights
generally, and the proper exercise of judicial discretion. In ny opinion,
NCPA is authorized to enter into the 20 -Year Power Sale Agreement with WWP
on behalf of, and as agent of the Participant.
Very truly yours,
606 W . STT
City Attorney
BM: VC
NCPA2/TXTA .01V