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HomeMy WebLinkAboutAmendment No. 2 to the Alaska Intertie Agreement entered into September 8, 2010AMENDMENT NO.2 TO THE ALASKA INTERTIE AGREEMENT Among ALASKA ENERGY AUTHORITY MUNICIPALITY OF ANCHORAGE,ALASKA d.b.a.MUNICIPAL LIGHT AND POWER; CHUGACH ELECTRIC ASSOCIATION,INC.; GOLDEN VALLEY ELECTRIC ASSOCIATION,INC.; ALASKA ELECTRIC GENERATION and TRANSMISSION COOPERATIVE,INC.and its members,MATANUSKA ELECTRIC ASSOCIATION,INC.,and HOMER ELECTRIC ASSOCIATION,INC. AMENDMENT NO.2 TO THE ALASKA INTERTIE AGREEMENT Among ALASKA ENERGY AUTHORITY MUNICIPALITY OF ANCHORAGE,ALASKA d.b.a.MUNICIPAL LIGHT AND POWER; CHUGACH ELECTRIC ASSOCIATION,INC.; GOLDEN VALLEY ELECTRIC ASSOCIATION,INC.; ALASKA ELECTRIC GENERATION and TRANSMISSION COOPERATIVE,INC.,and its members, MATANUSKA ELECTRIC ASSOCIATION,INC.,and HOMER ELECTRIC ASSOCIATION,INC This Amendment No.2 to the Alaska Intertie Agreement (hereinafter "Amendment”),ismadeandenteredintothis{day of SépPr.,2010,between the ALASKA ENERGY AUTHORITY,a public corporation of the State of Alaska ("AEA”or "Authority”);THE MUNICIPALITY OF ANCHORAGE,ALASKA, d.b.a. MUNICIPAL LIGHT AND POWER,a municipal corporation (""AMLP”);CHUGACH ELECTRIC ASSOCIATION,INC.,a non-profit electric cooperative membership corporation of the State of Alaska ("CEA”);GOLDEN VALLEY ELECTRIC ASSOCIATION,Inc.,a non-profit electric cooperative membership corporation of the State of Alaska ("GVEA”);ALASKA ELECTRIC GENERATION and TRANSMISSION COOPERATIVE,INC.,("AEGTC”),and its members,Homer Electric Association,Inc.("HEA”)and Matanuska Electric Association,Inc.("MEA”). These entities are sometimes hereinafter referred to individually as "Participant”or collectively as "Participants.The Alaska Intertie Agreement dated December 23,1985 ("Original Agreement”)shall be amended as set forth in this Amendment upon the execution of this Agreement by the Participants. WITNESSETH WHEREAS,AMLP,CEA,GVEA,AEGTC,and its members MEA and HEA each own and operate electric utility facilities,or will in the future,and are each engaged in the business of providing electric Power and Energy to customers,and WHEREAS,the name of the Authority was changed by operation of law from the Alaska Power Authority to the Alaska Energy Authority under section 2 of Executive Order 75 (1989);and 2 -AMENDMENT NO.2 TO THE ALASKA INTERTIE AGREEMENT WHEREAS,the Authority constructed the electrical transmission facilities to interconnect the Utility Participants in Northcentral Alaska with the Participants in Southcentral Alaska ("Intertie”)and made these electrical transmission facilities available to the Utility Participants under the Original Agreement for electrical Power and Energy transactions to improve reliability and economical Power and Energy deliveries to the Utility Participants'customers under the former Alaska Energy Program established by former AS 44.83.380;and WHEREAS,the Utility Participants entered into the Original Agreement as well as a separate agreement providing for Reserve Capacity and Operating Reserve Responsibility in order to improve the reliability of their interconnected electrical systems and engage in transactions for electrical Power and Energy deliveries to the Utility Participants and their customers;and WHEREAS,the Utility Participants have successfully operated their systems and the Alaska Intertie in accordance with the terms and conditions of the Original Agreement and the separate agreement providing for Reserve Capacity and Operating Reserve Responsibility;and WHEREAS,the Participants recognized that certain improvements were needed to the Alaska Intertie but were unable to agree on a mechanism to implement and pay for such improvements;and WHEREAS,the Authority gave notice on October 16,2006,to terminate the Original Agreement ("AEA Termination Notice”)pursuant to Section 2.2.2 because,inter alia,the Original Agreement had no mechanism to fund capital improvements,a number of repairs were needed,and that termination was required to improve Power systems serving Alaska Railbelt Utilities;and WHEREAS,the Participants have been meeting and discussing the terms and conditions under which the Alaska Intertie should be operated and the Original Agreement modified; and, WHEREAS,the forty-eight (48)month period required prior to termination in Section 2.2.2 of the Original Agreement will soon expire and the Participants have not finalized the terms and conditions under which the Alaska Intertie should be operated in the future; and WHEREAS,the Participants want to make amendments to the terms and conditions of the Original Agreement to improve policy and procedures for operating the Alaska Intertie and for improving the reliability of power within the Railbelt;and 3 -AMENDMENT NO.2 TO THE ALASKA INTERTIE AGREEMENT WHEREAS,the Participants need more time to accomplish the objectives of modifying the policy and procedures for operating the Alaska Intertie and for improving the reliability of power within the Railbelt;and WHEREAS,the Participants desire to extend until January 28,2011,the termination date under the AEA Termination Notice for the Original Agreement,in order to allow for the orderly development of a funding mechanism for capital improvements,the establishment of an Intertie Management Committee to manage and operate the Alaska Intertie in a manner similar to the management of the Bradley Lake Hydroelectric facility,as well as the consideration and adoption of Reliability Standards,and an enforcement mechanism for those Reliability Standards;and WHEREAS,it is the intention of the Participants amend the terms and conditions governing the operation of the Alaska Intertie to include provisions to ensure that the use of the Intertie is made available upon criteria giving due regard to "Open Access” principles that include,but are not limited to:ensuring that similarly situated potential users are subject to the same criteria when applying for access to the Intertie,all users are subject to the same terms and conditions of use,all users are subject to the same rates and charges,and that Intertie capacity is made available to users on an equitable basis;and, WHEREAS,the Participants also desire to amend the voting requirements for making amendments to the Original Agreement; NOW,THEREFORE,IN CONSIDERATION of the mutual covenants in this Amendment,the Participants agree as follows: 1.0 Definitions.Unless otherwise specifically provided,all capitalized terms in this Amendment shall have the meaning given in the Original Agreement. 2.0 Original Agreement.The terms and conditions set forth in the Original Agreement shall remain unchanged except as specifically provided for in this Amendment. 3.0 Alaska Power Authority.The Original Agreement shall be amended to remove all references to the Alaska Power Authority and substitute the Alaska Energy Authority (AEA). 4.0 Extension of the Original Agreement.The termination date for the Original Agreement established by the AEA Termination Notice,shall be extended from October 16,2010,to January 28,2011,and notwithstanding the AEA Termination Notice,the Original Agreement,as amended,shall remain in effect until January 28,2011. 4 --AMENDMENT NO.2 TO THE ALASKA INTERTIE AGREEMENT signed by Alaska Ener rity plus a vote -five percent (75%)o the signatorie i isted Utility Participant having one (1)vote each. 5.0 ndments.Article 26,Amendments,of the Original A al Hh amended to reéacNeither this Agreement nor any Of may be terminated, __amended,supplemented,-waiwe ;i except by an instrument in writin IN WITNESS WHEREOF,the Participants have caused this Agreement to be executed by their duly authorized officers or representatives as of the day and year first above written. ALASKA ENERGY AUTHORITYgoctgioggn()ENOfficeoftheWittorieyGeneralAEAFxccattig Directi (Title) SUBSCRIBED AND SWORN TO before me this_(2%day of October ,L010 last written.hnayilllyyiwavefe.owedwHOW,:WN Nasi,Notary Public,State of Alaska ,Sy A My Commission Expires:(//breeSz«pat te=n O CG Hes =eB sue SSG2RS MUNICIPALITY OF ANCHORAGE,MusTaFeok WN"any 30 oO aha MN C &Byc "N CWAymiceps0 Mawes.(Title) SUBSCRIBED AND SWORN TO before me this 22 day of Dept onde,2016 last written. nly,Dotbre Si erat 7 19)S Ree ¥IO%Notary Public,State of AlaskaSevgmeSZos.SS 3 My Commission Expires:812412612=A f€ovary zSS'er =.pup Wi = a.= TTT a 5 -AMENDMENT NO.2 TO THE ALASKA INTERTIE AGREEMENT CHUGACH ELECTRIC ASSOCIATION, INC. pyarohh,Zoans,LAN .ce ue (Title)SUBSCRIBED AND SWORN TO before me this_G day of October- __,L0/0 last written.Ntllny 7wM.How hose fC AlasStySSXBNotaryPublic,State of Alaska=ioTARY 4 Z My Commission Expires:porPh ofrzipuBulests" "yplie se OwS GOLDEN VALLEY ELECTRICM0ASSOCIATION,INC.By:KA test og /(Eo(Title)SUBSCRIBED AND SWORN TO before me this_€"day of _SEPT._,_20f) last written.'0 7//pa WHEN;ww wieSern'ly ,Sate of Alaska /;S4/gore,We #sionJExpires:is 21,{i=mn ho ;=z AN Pua'Awe&*oeGerona ALASKA ELECTRIC GENRATION andTINSTRANSMISSIONCQOPERATIVE,INZ. BY:ALL /LEApt) Veet |Lip 2d:"(Title SSUBSCRIBEDANDSWORNTObeforemethis_¢5 -day of _&S, last written.Vj YiY.y Alig hil yReWikhgMyAAhidAlJHKA4HNoPiac,Sfate of AlaskaMyYPSExpires:j i/[ue Z4 x\\nny5 aS"ify Simm NSUtateRWUTR 6 -AMENDMENT NO.2 TO THE ALASKA INTERTIE AGREEMENT