HomeMy WebLinkAbout062 - 06/01/2010 - AUTHORIZING AN AMENDED AND RESTATED CONTRACT WITH PLATTE RIVER POWER AUTHORITY FOR THE SUPPLY OF ELE ORDINANCE NO. 062, 2010
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 Power Authority ("Platte
River")entered into a Transmission Facilities Agreement(the"Facilities Agreement")to establish
the parties' rights and obligations related to their respective electric system facilities and to provide
for.shared use or lease of certain specified facilities; and
WHEREAS, on March 31, 1980, the City also entered into a Contract for the Supply of
Electric Power and Energy(the"Existing Supply Contract")with Platte River which establishes the
terms and conditions of the City's purchase of electric power and energy from Platte River; and
WHEREAS, on July 21, 1998, the City Council approved an amendment to the Existing
Supply Contract extending its termination date from December 31,2020 to December 31,2040;and
WHEREAS, the City and Platte River have recently negotiated an updated "Amended and
Restated Contract for the Supply of Electric Power and Energy" (the "Updated Supply Contract"),
a copy of which is on file with the City Clerk, dated May 12, 2010, that includes some revisions
informally requested by City Council at a previous-meeting of the City Council; and
WHEREAS, the Updated Supply Contract will replace and supersede the Facilities
Agreement and the Existing Supply Contract; and
WHEREAS,under the proposed Updated Supply Contract,Platte River will continue to sell
and deliver to the City, and the City will continue to purchase and receive from Platte River, all
electric power and energy that the City requires for the operation of its municipal electric system,
except that the City may also generate power and energy for its own use in City facilities from any
new generation resource(s) owned and operated by the City, provided that the City's total rated
capacity does not exceed 1,000 kilowatts or one percent of the peak load of the City, whichever is
greater; and
WHEREAS, the proposed Updated Supply Contract also: states that each party will be
granted a revocable license to occupy the property of the other party as necessary to deliver and
receive power and energy under the Updated Supply Contract in accordance with specified terms
regarding the use of certain facilities; allocates costs and maintenance responsibility for certain
facilities; outlines the process for the parties to engage in system planning; acknowledges Platte
River's contract with the Western Area Power Administration ( WAPA ); requires, as a condition
of the purchase of federally generated power, that the City comply with WAPA's General Power
Contract Provisions; and amends the term of the Existing Supply Contract so as to extend its
termination date by ten years to December 31, 2050; and
WHEREAS,on March 10,2010,the Electric Board reviewed the proposed Updated Supply
Contract and recommended approval of the same; and
WHEREAS, it is City staffs understanding that Utilities staff of Loveland, Longmont and
Estes Park will be recommending approval of the Updated Supply Contract to their respective
governing bodies.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the City Council hereby finds that it is in the best interests of the City to
replace and supercede the Facilities Agreement and Existing Supply Contract with the Updated
Supply Contract.
Section 2. That the Updated Supply Contract is hereby approved,and the Mayor is hereby
authorized and directed to execute the same on behalf of the City in substantially the form on file in
the office of the City Clerk and dated May 12, 2010.
Section 3. That the City Council hereby directs the Electric Board to annually review the
terms and conditions of the Updated Supply Contract and suggest any revisions to the Council by
formal board action.
Introduced,considered favorably on first reading,and ordered published this 18th day of May,
A.D. 2010, and to be presented for final passage on the 1st day un , A.D. 2010.
Mayo
AT-TEST:
1
City Cleik
Passed and adopted on final reading on the 1 st day of Ju .D. 2010.
Mayor '
ATTEST:
1
City-Clerk