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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