HomeMy WebLinkAboutReso 2002-118 - American Electric Power RESOLUTION NO. 2002-118
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDDING RATIFYING EXECUTION OF POWER
PURCHASE CONTRACT WITH AMERICAN ELECTRIC
POWER.
WHEREAS:
1. On June 18, 2002, the City Council met in closed session to discuss litigation with
Enron Corp. and Enron Power Marketing, Inc. (EPMI) and a proposed settlement of the
litigation. The proposal included a termination of the EPMI contract and a new 10-year contract
with American Electric Power (AEP).
2. James C. Feider, Electric Utility Director, was given the authority to execute all
settlement documents, including the new contract with AEP, subject to the approval by the City
Attorney of all documents to be executed.
3. On August 20, 2002, the settlement was consummated, and Mr. Feider executed the
Enron Settlement Agreement on behalf of the City of Redding following its approval by
W. Leonard Wingate, Special Counsel to the City Attorney's Office.
4. The new contract with AEP is now ready for signature.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Redding
hereby approves, ratifies, and accepts all terms and conditions contained in the settlement
documents executed by James C. Feider, Electric Utility Director, on behalf of the City of
Redding, and specifically approves and authorizes the execution by James C. Feider of the power
purchase contract with American Electric Power for up to 25 megawatts of capacity for a 10-year
term at a price of $40.25 per megawatt hour beginning November 1, 2004, and ending
October 31, 2014.
I HEREBY CERTIFY that the foregoing resolution was introduced, read and adopted at
a regular meeting of the City Council on the 20`h day of August, 2002, by the following vote:
AYES: COUNCIL MEMBERS: Cibula, McGeorge, Pohlmeyer, Stegall and Kight
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
PAT KIGHT, Mayor
Attest: Form Approved:
Connie Strobmayer, City Clt , David E. Tranberg, Acting City Atto • •
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