HomeMy WebLinkAboutReso 2003-115 - Natural Gas ContractsWHEREAS:
RESOLUTION NO. 2003-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDDING AUTHORIZING THE ELECTRIC UTILITY DIRECTOR
TO CONSENT TO THE ASSIGNMENT OF CERTAIN NATURAL
GAS CONTRACTS.
A. On February 6, 2001, the City Council authorized the Redding Electric Utility (REU) to enter
into long-term natural gas transportation agreements.
B. On March 6, 2001, the City Council authorized REU to enter into long-term natural
commodity agreements.
C. On March 11, 2002, REU entered into a comprehensive set of nine natural gas contracts with
PanCanadianEnergyServices forpipeline capacity, naturalgas commodity, andrelatednatural gas services.
D. On April 8, 2002, PanCanadian Energy Services merged with Alberta Energy Corp and the
merged corporation changed its name to EcCana Corp.
E. On March 10, 2003, EcCana Energy Services changed its name to WD Energy Services.
F. On July 10, 2003, WD Energy Services requested REU's consent to an assignment of all nine
contracts to Alliance Energy Services, an affiliate of Constellation Group.
G. WD Energy Services, as an inducement to elicit REU's consent to assignment, offered to amend
two of the nine contracts, prior to assignment, to reduce the term of one contract and reduce REU' s financial
obligation in a second contract by approximately $55,000 per year.
IT IS HEREBY RESOLVED that the City Council of the City of Redding authorizes the Electric
UtilityDirector to consent to the assignment of the nine natural gas contracts, as amended, from WD Energy
Services to Alliance Energy Services. Such consent is subject to approval as to form by the City Attorney.
I HEREBY CERTIFY the foregoing resolution was introduced, read, and adopted at aspecaal
meeting of the City Council on the 5th day of August, 2003 by the following vote:
AYES: COUNCIL MEMBERS: Kight,
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: Stegall
ABSTAIN: COUNCIL MEMBERS: None
Mathena,
gas
Attest:
Connie Strohm[tyer, City Cler~ [
Form Approved:
BRAD L. FULLER, City Attorney