HomeMy WebLinkAboutMEA Substation Addition and Intertie Agreement 19931-1,2
>». ALASKA INDUSTRIAL DEVELOPMENT
AND EXPORT AUTHORITY
480 WEST TUDOR + ANCHORAGE, ALASKA 99503-6690 (907) 561-8050 » FAX (907) 561-8998
September 1, 1993
Mr. Eric E. Wohlforth, Esq.
Wohlforth, Argetsinger
Johnson & Brecht
900 West 5th Avenue, Suite 600
Anchorage, AK 99501-2048
SUBJECT: MEA Stevens Substation Addition
Alaska Intertie Agreement
ATTORNEY CLIENT CONFIDENTIAL
Dear Eric:
Attached is a May 19, 1993 letter to Ron Garzini from Brad Evans, Intertie
Operating Committee Chairman, requesting a response to concerns about
letting MEA directly utilize the Alaska Intertie. The concerns stem from
the fact that MEA is not a participating utility under the Alaska Intertie
Agreement, but along with HEA, is currently represented by AEG&T in that
Agreement.
As we understand it, the Intertie Operating Committee is amenable to MEA's
proposal; however, the appropriate mechanism to allow for it is not readily
ascertainable in the Intertie Agreement. Please review the questions raised
below and the Agreement in light of the proposal and provide us with the
guidance to proceed toward accomplishing the proposal. This issue has been
outstanding for some period so your early response is appreciated. Please
contact Mr. Jim Baldwin or me if additional information is required.
Mr. Evans raises the two following issues in his letter:
1. Does MEA have participant status and rights through their
association with AEG&T? MEA is not signatory to the AIA and the
contract is silent on this question.
2. What impact does construction and operation of a substation by a
non-participating utility have?
Mr. Eric Wohlforth, Esq.
September 1, 1993
Page Two
Additional AEA questions:
1. Does section 7.4.2 allow AEA to add a substation to the Intertie?
a.
b.
If so, must AEA own the substation, or can it be owned by either
a participating or non-participating utility?
If the Agreement must be modified, what provisions must be
changed?
2. Does section 7.4.3. allow AEG&T or another participating utility to
add a substation to the Intertie (this section omits the AEA's 7.4.2
language “including taps to the line to provide electrical services
at locations which it deems beneficial and reasonable.")?
a.
b.
If so, must AEG&T own the substation, or can it be owned by a
non-participating utility?
If AEG&T is not required to own the substation, can it sell its
Intertie Transfer Capability Rights without modifying the
Agreement?
If the Agreement must be modified, what provisions must be
changed?
Please copy Mr. Baldwin on your response.
Very truly yours,
PAM. Cushan
Dennis V. McCrohan, P.E.
Deputy Director (Energy)
DVM:ec
cc: R. Snell, AIDEA “ 1/1
D. Beardsley, AIDEA 1/0
A. Khan, AEA 1/0
J. Baldwin, Dept. of Law 1/1
Attachment