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Home My WebLink AboutAmendment No. 5 to the Alaska Intertie Agreement 2011AMENDMENT NO.5 TO THE - ALASKA INTERTIE AGREEMENT Among ALASKA ENERGY AUTHORITY; MUNICIPAL LIGHT AND POWERa department of the MUNICIPALITY OF ANCHORAGE,ALASKA; 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.5 TO THE ALASKA INTERTIE AGREEMENT Among ALASKA ENERGY AUTHORITY; MUNICIPAL LIGHT AND POWERa department of the MUNICIPALITY OF ANCHORAGE,ALASKA; 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.5 to the Alaska Intertie Agreement (hereinafter "Amendment”),is madeandenteredintothisWikadayofSeptember,2011,between the ALASKA ENERGY AUTHORITY,a public corporation of the State of Alaska ("AEA”or "Authority”); MUNICIPAL LIGHT AND POWER,a department of THE MUNICIPALITY OF ANCHORAGE,ALASKA,("AML&P”);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.,("AEG&T”),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,AML&P,CEA,GVEA,AEG&T,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 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 toimprovethereliabilityoftheirinterconnectedelectricalsystemsandengageintransactionsforelectricalPowerandEnergydeliveriestotheUtilityParticipantsandtheircustomers;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,infer 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 executed Amendment No.2 to the Alaska Intertie Agreement extending the termination date to January 28,2011,in order to continue discussions regarding the modification of the Original Agreement;and WHEREAS,the Participants executed Amendment No.3 to the Alaska Intertie Agreement on January 28,2011,extending the termination date to June 30,2011,in order to continue discussions regarding the modification of the Original Agreement;and WHEREAS,the Participants executed Amendment No.4 to the Alaska Intertie Agreement on June 29,2011,extending the termination date to October 3,2011,in order to continue discussions regarding the modification of the Original Agreement;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 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 WHEREAS,the Participants have made significant progress in resolving open issues identified in their continuing discussions;and WHEREAS,the Participantsneed additional time to accomplish the objectives of modifying thepolicyandproceduresforoperatingtheAlaskaIntertieandforimprovingthereliabilityofpower within the Railbelt;and WHEREAS,it is the intention of the Participants to 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 desire to extend the October 3,2011,termination date set forth in Amendment No.4 to the Original Agreement,in order to allow for the continued orderly development and finalization of a finding 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 careful consideration of Reliability Standards,and the effect of any applicable Federal Aquisition Regulations; NOW,THEREFORE,IN CONSIDERATION of the mutual covenants in this Amendment,the Participants and the Authority 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 Extension of the Original Agreement.The termination date for the Original Agreement established by the AEA Termination Notice and extended by Amendments Nos.2,3 and 4 to the Original Agreement,shall be further extended to November 15,2011,and notwithstanding the AEA Termination Notice,the Original Agreement,as amended,shall remain in effect until such date. IN WITNESS WHEREOF,the Participants and the Authority have caused this Agreement to be executed by their duly authorized officers or representatives as of the day and year first above written. aie ALASKA ENERGY AUTHORITYroverRes)to fo by:SaaSOfficeoftheAttorney{5 eneral "ee Curse,DilecsorHe,(Title)SUBSCRIBED aN 'ep before me this QUE day of Seple nebo ,01]last written.Ss""RS mM |A D =i NOTARY:=Notary Public,State of Alaska =i is My Commission Expires:w/t offjceA¥AtsPUBLIC #x.SSGenesosOFRASMaa SUBSCRIBED AND SWORN TO before me this_,/S_day of _Wer,,201| last written.ante ttany, ° A+iAyef NOTARY Heteaa pangane'® > ra s r 2:PUBLIC BoE= == =ry:: GOLDEN VALLEY ELECTRIC _S »/By:LRESIOEATLCED(Title) (i.K."Ree diy Notary Public,State of Alaska,4).-My Commission Expires:Dyn \g,a0 Is ALASKA ELECTRIG GENERATION andCOOPERATIVE,INC. (Title)-SUBSCRIBED AND SWORN TO before me this /7"dayof_Sept __,_Zelllastwritten.a)Bb evia >vA LLZ-Z2 zell Notary Public,State of Alaska My Commission Expires:__//-2/-/2. MUNICIPAL LIGHT &POWER a depart of the MUNICIPALI ANCHORAGE,ALASKA By:A James M.Posey M.ML&F /(Title) ber,ZON/SUBSCRIBED AND SWORN TO before me this 2/st_day oflester,onoe Sidy duidleionNotaryPublic(State of AlaskaMyCommissionExpires:_O@ro6éER 24,2013ZzoO»»x,"SsHerne™eS)ysHy,CHUGACH ELECTRIC ASSOCIATION, INC. .aByworFrenCe2>= (Title)SUBSCRIBED AND SWORN TO before me this (OWL day of September 201)last written. Notary Public,State of Alaska My Commission Expires:_/0 +/0-/fUCC +5.fo,