HomeMy WebLinkAboutReso 2006-070 - AEP Power Sale
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RESOLUTION NO. 2006-70
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
AUTHORIZING TH]~ ELECTRIC UTILITY DIRECTOR TO SIGN AN
AMENDMENT TO THE CURRENT AEP POWER SALE AGREEMENT
SHORTENING THE CONTRACT TERM FROM OCTOBER 31, 2014 TO
DECEMBER 31,2010, IN EXCHANGE FOR THE ONE-TIME PAYMENT
OF $6,400,000.
WHEREAS, the City of Redding and AEP Corp. entered into a contractual arrangement in
2002 for the sale by AEP Corp. to the City of Redding for 25 MW of power for the period November
2004 - October 2014; and
WHEREAS, subsequently, AEP Corp. has determined that it desires to seek early termination
of the Power Sale Agreement on December 31,2010; and
WHEREAS, the City of Redding is willing to accept such early termination in consideration
for the sum of $6,400,000.
NOW, THEREFORE, HE IT RESOLVED by the City Council of the City of Redding that
the Electric Utility Director is authorized to sign an amendment to the current Power Sale Agreement
between the City of Redding and AEP Corp. subject to the following:
1. The contract termination date will be amended to reflect a termination date of December
31,2010.
2. AEP Corp. will pay the City of Redding the sum of $6,400,000 within 30 days from when
the amendment to the Power Sale Agreement is signed by the Electric Utility Director on
behalf of the City of Redding.
I HEREBY CERTIFY that the foregoing resolution was introduced, read, and adopted at
a regular meeting of the City Council on the 2nd day of May, 2006, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEl\1rnERS: Dickerson, Mathena, Pohlmeyer, Stegall, and Munay
COUNCIL MEl\1rnERS: None
COUNCIL MEMBERS: None
COUNCIL MEMBERS: None
Attest:
Form Approved:
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RICHARD A. DUVERNA , City Attorney
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