HomeMy WebLinkAboutAmendment No. 6 to the Alaska Intertie Agreement November 2011AMENDMENT NO.6
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.6
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.6 to the Alaska Intertie Agreement (hereinafter "Amendment'),is made
and entered into this day of November,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 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 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 executed Amendment No.5 to the Alaska Intertie Agreement on
September 21,2011,extending the termination date to November 15,2011,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 Participants need additional time to obtain the necessary approvals 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,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 similarly situated 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 November 15,2011,termination date set forth
in Amendment No.5 to the Original Agreement,in order to allow for the continued orderly
development and finalization 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
careful consideration of Reliability Standards,and the effect of any applicable Federal
Acquisition 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.2,3,4,
and 5 to the Original Agreement,shall be further extended to November 18,2011,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.
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