HomeMy WebLinkAbout11 Skagway_YukonEnergy_MOU_Signed11June2012
REGIONAL ENERGY MOU
Municipality of Skagway
GATEWAY TO THE KLONDIKE
P.O. BOX 415 SKAGWAY, ALASKA 99840
(PHONE) 907-983-2297 – Fax 907-983-2151
WWW.SKAGWAY.ORG
Regional Energy Memorandum of Understanding (MOU)
BETWEEN
YUKON ENERGY CORPORATION (“Yukon Energy”)
AND
MUNICIPALITY OF SKAGWAY (“Skagway”)
(Collectively “the Parties”)
WHEREAS, There is a history of cooperation between the State of Alaska and the Government
of Yukon on matters of mutual interest as expressed in the Alaska-Yukon Intergovernmental
Relations Accord; and
WHEREAS, YUKON ENERGY is a crown-owned, regulated utility with a mandate to plan,
generate, transmit and distribute a continuous and adequate supply of energy in the Yukon;
and
WHEREAS, YUKON ENERGY is investigating new sources of generation that are affordable,
flexible, reliable and environmentally responsible to help meet future demand; and
WHEREAS, YUKON ENERGY is interested in continuing to explore opportunities for potential
regional energy projects, including those in Southeast Alaska which may be of mutual benefit to
both the Yukon and Alaska; and
WHEREAS, SKAGWAY wishes to address concerns regarding the cost of power within the
Skagway Borough; and
WHEREAS, SKAGWAY is pursuing Alaska Energy Authority funding for a feasibility study to
determine if hydro-electricity can be generated from West Creek; and
WHEREAS, a hydro-electricity feasibility study has been funded and completed for Burro Creek;
NOW THEREFORE, the Municipality of Skagway and the Yukon Energy Corporation agree to the
Regional Energy Memorandum of Understanding as outlined below.
INTENT
The intent of this MOU is to enable the Parties to work together to investigate opportunities for
regional energy projects that may offer mutual benefits and potential solutions to energy
challenges faced by the Yukon and Alaska including but not limited to:
• Exchanging information that is relevant to discussion as outlined in this MOU;
• Exploring opportunities to partner on research and/or prefeasibility studies for regional
projects;
• Providing letters of support for potential projects in the region which may be of mutual
benefit;
• Investigating synergies between electricity surpluses and demand that could support
new generation and/or intertie projects in the region.
DURATION
The term of this MOU shall extend until March 31, 2014, at which time it may be renewed by
mutual agreement of the Parties.
FINANCIAL ARRANGEMENTS
This MOU shall not give rise to any financial obligation by one Party to the other. Each Party
shall be responsible for its costs and expenses relating to the portion of the MOU for which it is
responsible, as set forth herein, whether or not a regional energy project is developed.
EXTENT OF THE AGREEMENT
The signing of this MOU does not create any legal obligations on the part of either Party to
enter into a future project and/or supply agreement.
LEGAL AND REGULATORY AUTHORITY
Any future LNG supply agreement will be subject to any and all legal and regulatory approvals
under any applicable legislation.
ACTS OF PARTIES AND AGENTS
Each Party shall be responsible for the acts of its own employees, agents and contractors in
carrying out the provisions of the MOU.
AMENDMENT
Any amendments to the MOU will be made in writing upon the consent of both Parties.