HomeMy WebLinkAboutReso 2003-054 - Hydroelectric ProjectRESOLUTION NO. 2003-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDDING APPROVING ENTERING INTO A MEMBER
AGREEMENT (SECOND PHASE) FOR FINANCING OF
PLANNING AND DEVELOPMENT ACTIVITIES OF
HYDROELECTRIC PROJECT NUMBER TWO, THE POE
HYDROELECTRIC PROJECT.
WHEREAS:
A. The Poe Hydroelectric Project is an existing 120-megawatt hydroelectric generating
station located on the Feather River, currently licensed by the Federal Energy Regulatory
Commission (FERC) to Pacific Gas and Electric Company (PG&E) under a license issued
September 26, 1953, for a period of 50 years.
B. By federal law, the deadline for PG&E to file an application to renew this license was
September 30, 2001. PG&E filed its application late on October 2, 2001, and is seeking ~to have
FERC allow PG&E to backdate its license application.
C. FERC issued an Order denying PG&E's request, but did extend PG&E's incumbent
status in the re-established license application proceedings. At the same time, FERC established a
new competitive process for the license, setting the date for filing a competing application to January
2004.
D. The Northern California Power Agency (NCPA), of which the City of Redding is a
Member, filed an Appeal with the 9th Circuit Court of FERC's decision to allow PG&E an
incumbent filing status on the Project license renewal. This appeal is not expected to be decided
much before December 2003.
E. NCPA, in addition, filed with FERC its Notice of Intent to file a timely license
application under the Federal Power Act, in competition with the license application of iPG&E.
NCPA staff analyzed the economics, and concluded that if NCPA is successful in acquiring the
hydro license, the power output ii'om the Project would be very economical in comparison to other
resource alternatives.
F. In order for the NCPA Members to participate in the Project, NCPA drafted a Second
Phase Member Service Agreement for the financing of the planning and development activities
related to the Project. A copy of the Agreement is on file with the City Clerk.
G. It is the recommendation of the Redding Electric Utility staff that the City C. ouncil
authorize the City's participation in the Member Agreement.
IT IS HEREBY RESOLVED by the City Council of the City of Redding that:
1. The City Council believes it is in the best interests of the City to actively pursue this
cost-effective resource through the license application process with NCPA and its other active
Members.
2. The Mayor of the City of Redding is hereby authorized and directed to sign the Member
Agreement (Second Phase)for Financing of Planning and Development Activities of Hydroelectric
Project Number Two, the Poe Hydroelectric Project, between the Northern California Power Agency
and its Members who execute the Agreement (referred to therein as Project Members).
3. The City Clerk is directed to attest the signature of the Mayor and affix the Seal to the
Member Agreement.
I HEREBY CERTIFY the foregoing resolution was introduced, read and adopted at a
regular meeting of the City Council on the 1 st day of April, 2003, by the following vote:
AYES: COUNCIL MEMBERS: Kight,
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
Mathena, Pohlmeyer, Stegall and Cibula
Attest:"
conn,.e
Form Approved:
l~rad L. Fuller, City Attorney
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