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HomeMy WebLinkAbout1981-086-06/16/1981-AUTHORIZING THE CITY TO ENTER INTO AN AGREEMENT WITH THE PLATTE RIVER POWER AUTHORITY PROVIDING FOR r J RESOLUTION 81- 86 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CITY TO ENTER INTO AN AGREEMENT WITH THE PLATTE RIVER POWER AUTHORITY PROVIDING FOR THE PURCHASE BY PLATTE RIVER OF ELECTRICAL ENERGY OFFERED BY A QUALIFYING PARALLEL GENERATION OR SMALL PRODUCTION FACILITY IN THE FORT COLLINS SERVICE AREA WHEREAS, Fort Collins has contracted to purchase from Platte River, all electric power and energy which it requires for resale and the oper- ation of its electric distribution system and such all-requirements commit- ment has been relied upon by the purchasers of Platte River's electric revenue bonds, and WHEREAS, Platte River owns, has contracted for , and has under con- struction sufficient electric power and energy resources to meet the electric energy requirements of Fort Collins for the forseeable future, and WHEREAS, pursuant to the rules on cogeneration and small power production issued by the Federal Energy Regulatory Commission, electric energy from one or more qualifying cogeneration or small production facilities ("Qualifying Facility") may be offered to Fort Collins, but cannot be purchased by Fort Collins without breaching its existing all- requirements obligation contained in its contract of March 31 , 1980 with Platte River , to the detriment of Platte River 's performance of its related obligation to holders of its revenue bonds, and WHEREAS, in order to comply with government policies and reguTiations designed to encourage cogeneration and small power production, and to avoid breaching the all-requirements provision in the existing contract between the Parties and the related covenant in Platte River's General Bond Reso- lution Platte River, as Fort Collins ' all requirements energy supplier, agrees to purchase any electric energy offered to Fort Collins from a Qualifying Facility, and WHEREAS, in order to encourage cogeneration and small power production in accordance with government policies, and to avoid breaking the retail sales restriction contained in the existing contract between the Parties and to avoid violation of the contractual purposes for which Platte River was established, Fort Collins, as the sole legally designated retail distributor of electric energy and capacity within its designated service territory, agrees to sell back-up, maintenance, supplementary and inter - ruptible power to any Qualifying Facility Operator NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the Mayor be, and hereby is, authorized and directed to enter into an agreement with the Platte River Power Authority setting forth the terms under which The City of Fort Collins Light and Power Utility will act as Platte River's Agent in receiving electrical energy offered for sale by a qualifying cogeneration or small production facility Passed and adopted at a regular meeting of the City Council held this 16th day of June, 1981 ATTEST Mayor ity ler -2-