HomeMy WebLinkAbout017 - 02/03/2009 - AUTHORIZING AN AMENDED AND RESTATED CONTRACT WITH PLATTE RIVER POWER AUTHORITY FOR THE SUPPLY OF ELE ORDINANCE NO. 017, 2009
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING AN AMENDED AND RESTATED CONTRACT
WITH PLATTE RIVER POWER AUTHORITY
FOR THE SUPPLY OF ELECTRIC POWER AND ENERGY
WHEREAS, on February 22, 1980, the City and Platte River Po er Authority ("Platte
River") also entered into a "Transmission Facilities Agreement" (the " acilities Agreement") to
establish the parties' rights and obligations related to their respective ectric system facilities and
to provide for shared use or lease of certain specified facilities; and
WHEREAS, on March 31, 1980, the City also entered nto a "Contract for the Supply of
Electric Power and Energy" (the "Existing Supply Contract" with Platte River Power Authority
which establishes the terms and conditions of the City's pur ase of electric power and energy from
Platte River; and
WHEREAS, on July 21, 1998, the City Co cil approved an amendment to the Existing
Supply Contract extending its termination date fro December 31,2020 to December 31,2040;and
WHEREAS, agenda items calling for pproval of an"Amended and Restated Contract for
the Supply of Electric Power and Energy"(" terim Supply Contract")dated August 13,2008,were
prepared for Council consideration on gust 19, 2008 and such items were withdrawn from
consideration on that date; and
WHEREAS, a City Counci work session took place on October 28, 2008 to discuss the
Interim Supply Contract dated A ust 13, 2008; and
WHEREAS, City Co cil requested revisions to the Interim Supply Contract that reflect
Platte River's commitment t environmental stewardship and sustainability,and that call for the City
and Platte River to condu future good faith negotiations regarding the City's interest in developing
generation resources to erve its own City facilities if necessary; and
WHEREAS the City and Platte River have recently negotiated an updated "Amended and
Restated Contract or the Supply of Electric Power and Energy" (the "Updated Supply Contract"),
a copy of whic is on file with the City Clerk, dated January 28, 2009, that includes the revisions
requested by uncil,the purpose of which is to replace and supersede the Facilities Agreement and
the Existing upply Contract; and
EREAS,under the proposed Updated Supply Contract,Platte River will continue to sell
and de ver to the City, and the City will continue to purchase and receive from Platte River, all
elect c power and energy that the City requires for the operation of its municipal electric system;
I
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ON FIRST READING
however,the City may also generate power and energy for its own use in City facilities/cacity
generation resource(s) owned and operated by the City provided that the City's totaldoes not exceed 1,000 kilowatts or one percent of the peak load of the City,whichever WHEREAS, the proposed Updated Supply Contract also: states that eac parywe
granted a revocable license to occupy the property of the other party as necessXy to deliver and
receive power and energy under the Updated Supply Contract in accordance ith specified terms
regarding the use of certain facilities; allocates costs and maintenance re onsibility for certain
facilities; outlines the process for the parties to engage in system plann' g; acknowledges Platte
River's contract with the Western Area Power Administration("WAP ); requires, as a condition
of the purchase of federally generated power, that the City comply th WAPA's "General Power
Contract Provisions;" and amends the term of the Existing Sup y Contract so as to extend its
termination date by ten years to December 31, 2050.
NOW, THEREFORE, BE IT ORDAINED BY TH COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the City Council hereb rods that it is in the best interests of the City
to replace and supercede the Facilities Agreemen and Existing Supply Contract with the Updated
Supply Contract.
Section 2. That the Updated S pply Contract is hereby approved, and the Mayor is
hereby authorized and directed to execu the same on behalf of the City in substantially the form
on file in the office of the City Clerk d dated January 28, 2009.
Introduced, considered fa rably on first reading, and ordered published this 3rd day of
February, A.D. 2009, and to be esented for final passage on the 17th day of February, A.D. 2009.
Mayor
ATTEST:
City Clerk
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ON FIRST READING
Passed and adopted on final reading on the 17th day of February, A.D. 2009.
Mayor
ATTEST:
City Clerk
POSTPONED INDEFINITELY
ON FIRST READING