REVISED AMENDMENT NO. 1 TO
AGREEMENT FOR THE SALE AND PURCHASE
OF ELECTRIC POWER AND ENERGY
between
CHUGACH ELECTRIC ASSOCIATION, INC.
and the
CITY OF XXXXXX
The parties hereby agree to amend the contract as follows:
1. The term of this agreement shall be extended to January 31, 2006.
2. This amendment is contingent on approval by the Xxxxxx City Council and
approval by the Chugach Board of Directors to the extent such approvals are
required by those bodies.
3. This amendment shall be effective on the date approved by the Regulatory
Commission of Alaska (RCA).
4. Within two weeks after the latter of the two approvals set out in paragraph
2, above, the parties shall jointly submit an appropriate filing
requesting interim and permanent approval of this Amendment by the RCA.
5. If the RCA issues a final decision denying permanent approval of this
Amendment or approving the Amendment subject to exceptions or
modifications, the parties shall, within 60 days of such order, attempt
in good faith to renegotiate this Amendment so as to accomplish as nearly
as possible the original intent of this Amendment and return the Parties
as nearly as possible to the position they would have enjoyed had
approval been granted without modification. If the parties are unable to
agree to a renegotiated Amendment, either Party may terminate performance
under this Amendment upon 30 days prior notice. While this Amendment is
pending RCA approval and during the aforementioned 60 day renegotiation
period, the Parties shall not incur any new power supply or power
purchase obligations which materially diminish that party's future ability
to perform its power supply or power purchase obligations as set forth
in this Amendment and the wholesale power agreement which it amends.
6. In accordance with the Parties current practice under the Agreement,
the monthly fuel and purchased power costs described in Attachment C to
the Agreement are subject to adjustment as needed to fairly allocate
fuel and purchased power costs to Xxxxxx. This adjustment shall be
consistent with charges approved by the RCA for inclusion in rates of
Chugach's other customers which are charged under Chugach's fuel
surcharge adjustment process. These adjustments allowed by the RCA in
the fuel surcharge adjustment process may result from but are not
limited to such things as natural gas tax or royalty pass-through
adjustments, revisions to operating results, revised fuel and other
invoices, economy xxxxxxxx, adjustments resulting from the difference
between interim and final rates and calculation errors.
7. Xxxxxx agrees that during the term of this Agreement, any agreement by
Xxxxxx for the sale of its electric utility or any portion of it or any
rights to serve customers on the Xxxxxx side of the Delivery Points to
another public utility (or any other entity) will not interfere with this
contract or materially impair Chugach's rights under this Agreement
(including the pricing terms) relating to electric power sold by Chugach
for use by customers on the Xxxxxx side of the Delivery Points.
8. Xxxxxx and Chugach were made aware of certain Commission staff concerns
about approval of the full proposed contract term in light of Chugach's
general rate case due to be filed June 30, 2001 (hereinafter "General Rate
Case"). To address these concerns, Xxxxxx and Chugach have agreed on the
following additions to this Amendment No. 1 and on this basis the
Commission approved the contract conditioned on the revisions stated below:
a) After the Commission has made a final decision in Chugach's General
Rate Case, the rate terms of this contract shall be re-opened as set
out below.
b) The fixed rate provided for in this amendment will be in effect until
the effective date of the new permanent rates that are established by
the final order issued in Chugach's General Rate Case. On that
effective date, Xxxxxx will begin paying the rates that result from
applying the 1/3 demand charge reduction to the new fully allocated
costs approved in Chugach's General Rate Case.
c) Within 60 days of the final order of the Commission in the General Rate
Case, Xxxxxx may make one of the following three choices:
1. Continue with the contract adjusted using the same methodology
adopted in the General Rate Case so that the 1/3 demand reduction
is applied to the new fully allocated rate based on the General
Rate Case outcome;
2. Negotiate a new contract with Chugach and file it with the
Commission for approval as a special contract; or
3. Give notice to Chugach that the contract is terminated effective
12 months from the effective final order of the Commission in the
General Rate Case.
The above options will not be tolled by any appeal of the final General
Rate Case decision.
THE CITY OF XXXXXX CHUGACH ELECTRIC ASSOCIATION, INC.
By /s/ X. X. Xxxxx By /s/ Xxxxxx X. Xxxxxxxxx
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City Manager Xxxxxx X. Xxxxxxxxx
General Manager
Date: May 14, 2001 Date: May 9, 2001
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ATTEST
/s/ Xxxxxxx Xxxxxx
Xxxxxxx Xxxxxx, City Clerk
