HomeMy WebLinkAboutEagle Village Intertie memo 1990MEMORANDUM STATE OF ALASKA
ALASKA ENERGY AUTHORITY
To: Dave Denig-Chakroff Date: 6/14/90
Director of Rural Programs
From: Steve Stassel ys
Engineering Analyst
Subject: Eagle Village-Eagle Power Intertie
SUMMARY
1) Both Eagle Village and Eagle Power are prepared to sign the Power Sales
Agreement (PSA).
2) Eagle Power and Eagle Village have agreed on a purchased power rate of $.38/kWh.
3) The purchased power rate and rate increase language need to be included in PSA.
4) The poles are enroute and will arrive in two weeks. Eagle Power needs to begin
right-of-way clearing immediately.
5) I requested Mr. David and Mr. Helmer to contact the Energy Authority no later than
Thursday June, 21st for a status report.
I received a telephone call Monday, June 11th from Howard David, Chief of Eagle Village. He
informed me that he has talked with Ralph Helmer of Eagle Power and they have no problems
with the Power Sales Agreement and have agreed on a purchased power rate of $.38/kWh. Mr.
David would like to sign the agreement and get started on the project.
I asked Mr. David if his attorney had reviewed the agreement and made any recommendations for
changes. He has FAXed the agreement to his attorney and is waiting to hear from them. Although
his attorney has not commented on the agreement, Mr. David wants to sign.
I contacted Mr. Helmer to see if he had any concerns on either the Power Sales Agreement or the
Project Agreement. He informed me that he was prepared to sign both agreements and begin the
project as soon as possible.
Mr. Helmer did have two suggestions regarding the term of the Power Sales Agreement and the
parameters for rate changes. He prefers a term of more than one year, up to ten years. This is to
minimize the administrative burden of renegotiating the Power Sales Agreement (PSA) annually.
Also, the language that Mr. Helmer and Mr. David have discussed for rate changes would tie the
PSA tariff to Eagle Power’s current Commercial Customer tariff. In this way, any changes in rate
structure would be across the board for large consumers of power. (Currently, Mr. Helmer believes
that his Commercial Customer tariff with the school is an open-ended contract and does not have
any language regarding parameters for rate changes. He also said that the rate has not changed in
years, and that his Residential Customer tariff was in the process of being reduced from $.40 to
$.38/kWh.)
Regarding the Project Agreement, Mr. Helmer has two concerns. The first is with the language
regarding project completion and sign-off for final payment. He would like to have some idea of
what the Energy Authority requires prior to final payment, but says he can "live" with the present
language. His second concern is regarding the clause that states he can’t bill for work completed
prior to signing of the Project Agreement. He does not know if he can complete the job this year if
he doesn’t get started immediately.
The poles for the project left Seattle this week and should be in Eagle in two weeks. Mr. Helmer
says he needs to begin right-of-way clearing now to be ready to install the poles upon arrival.
/SS
ce: Dick Emerman
Gary Smith
Dale Rusnell
Pat Woodell
Sue White doin Bulow a ensen