HomeMy WebLinkAboutRes 2020-09-Resolution Approving Agreements Related to the Transmission Line ProjectsALASKA ENERGY AUTHORITY
RESOLUTION NO.2020-09
RESOLUTION OF THE ALASKA ENERGY AUTHORITY
APPROVING AGREEMENTS RELATED TO THE
TRANSMISSION LINE PROJECTS
WHEREAS, on May 22, 2020, the Authority signed a Letter of Intent with Homer
Electric Association Inc. ("HEA") concerning the purchase of certain transmission assets
and other rights to be added to the Bradley Lake Hydroelectric Project; and
WHEREAS, in Resolution No. 2020-08, the Authority has concurrently with this
resolution approved its Power Revenue Bond, Tenth Series (Transmission Line Projects),
in an aggregate principal amount not to exceed $17,000,000; and
WHEREAS, the Authority has been negotiating with BEA and Alaska Electric &
Energy Cooperative, Inc. (AEEC) the purchase of certain assets, including certain utility
assets, access to transmission capacity, and compensation for cost incurred restoring the
115 kV line between Sterling Substation and Quartz Creek Substation (the "Transaction");
and
WHEREAS, the detailed provisions of the Transaction besides the financing
arrangements are contained in agreements or amendments to existing agreements to be
signed with HEA, AEEC and other utilities participating in the Bradley Lake Project as
listed below; and
WHEREAS, there has been presented to this meeting forms of the following
documents ("Transaction Agreements"), which the Authority proposes to finalize in
connection with the Transaction in substantially the form presented at this meeting:
1. Purchase and Sale Agreement, by and among HEA, AEEC and the
Authority; and
2. Memorandum of Proposed Transaction, by and among AEEC, Chugach
Electric Association, Inc., HEA, Golden Valley Electric Association, Inc., Matanuska
Electric Association, Inc., City of Seward d/b/a/ Seward Electric System, and the
Authority; and
3. Second Amendment to Agreement for Sale of Transmission Capability, by
and among HEA, AEEC, Chugach Electric Association, Inc., Golden Valley Electric
Association, Inc., Matanuska Electric Cooperative, Inc., City of Seward d/b/a Seward
Electric System and the Authority; and
4. First Amendment to Bradley Lake Hydroelectric Project Transmission
Facilities Maintenance Agreement by and among HEA and the Authority.
WHEREAS, it appears that each of the Transaction Agreements above referred to,
which are now before the members of the Authority, is in appropriate form and is an
appropriate instrument for the purposes intended; and
WHEREAS, the Transaction Agreements are in furtherance of the Authority's
mission.
NOW, THEREFORE, BE IT RESOLVED BY THE ALASKA ENERGY
AUTHORITY AS FOLLOWS:
Section 1. The Authority agrees and approves each of the Transaction
Agreements as provided to the Board, along with any non -material changes to the
Transaction Agreements that may be necessary prior to execution.
Section 2. The Executive Director of the Authority is authorized to take
such actions as may be necessary or convenient to carry out this approval, including
executing each of the Transaction Agreements in the name of and on behalf of the
Authority.
Section 3, This Resolution shall become effective immediately upon its
passage and approval.
AEA Resolution No. 2020-09 Page 2
Dated at Anchorage, Alaska this day of December, 2020.
Chair
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AEA Resolution No. 2020-09 Page 2